BP DOWNSTREAM INVESTOR DAY Lubricants continued growth … · A global business with a portfolio...
Transcript of BP DOWNSTREAM INVESTOR DAY Lubricants continued growth … · A global business with a portfolio...
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Mandhir Singh – COO BP Lubricants A.S. Ramchander (Ram) – CMO BP Lubricants
BP DOWNSTREAM INVESTOR DAY
Lubricants – continued growth and attractive returns
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BP DOWNSTREAM INVESTOR DAY 2 JUNE 2017
A global business with a portfolio built for growth
Cars Bikes Commercial
Vehicles
Industrial
Marine & Energy Cars Bikes
Commercial vehicles
Industrial
Marine & Energy
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JUNE 2017 BP DOWNSTREAM INVESTOR DAY 3
Castrol lubricants – continued growth
>$0.6bn
2
Underlying earnings growth1
$bn
(1) At 2016 foreign exchange environment
(2) Excludes growth countries
Customer relationships
Strong brands
Differentiated technology
1
2
2016 Growthcountries
Premiumlubricants
2021
Thousa
nds
>$0.6bn Lubricants growth1 still to come
Sources of differentiation
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BP DOWNSTREAM INVESTOR DAY 4 JUNE 2017
Strong brands
(1) 2015 Millward Brown Brand Health study comprising US, Australia, Vietnam, Indonesia, India, China, Turkey & Russia markets
Power brands create advantage in focus segments
End-users more loyal to Castrol1
Loyalty
Familiarity
Shell
Leading brands
Mobil
82
72
42
23
74
57
25
10
66
55
21
9
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BP DOWNSTREAM INVESTOR DAY 5 JUNE 2017
Solving customer problems with differentiated technology
~$200m gross margin in 20161 from unique or first to market product launches
0
200
400
2014 2015 2016
(1) Launched since 2013 at 2016 foreign exchange environment
0
100
200
2014 2015 2016
Gross margin from unique or first to market product launches1
$m
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BP DOWNSTREAM INVESTOR DAY 6 JUNE 2017
Truly loyal customers drive competitive advantage
Landscape of >2,000 Distributors
~15,000 SALES PEOPLE
> 150,000 INDEPENDENT WORKSHOPS
60
(1) Castrol Customer Heartbeat 2016 survey
High Risk Trapped
5% 60%
10% 25%
Loyalty to competition
8% 51%
24% 17%
BEHAVIOURS
AT
TIT
UD
ES
60% of our Customers are truly loyal1
Accessible Truly Loyal
ORIGINAL EQUIPMENT MANUFACTURERS PARTNERSHIPS
60% of our customers are truly loyal1
Accessible Truly Loyal
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BP DOWNSTREAM INVESTOR DAY 7 JUNE 2017
Key growth countries earnings1,3 $bn
Key growth countries1 Car & motorcycle lubricant volumes CAGR
Well positioned in key growth countries
(1) Key growth countries: China, India, Vietnam, Brazil, Mexico, Russia, Indonesia, Kingdom of Saudi Arabia, Thailand, Turkey
(2) Source: Kline & Company
Market2 Castrol
(3) At 2016 foreign exchange environment
0
0.4
0.8
1.2
2014 2016 2021
0%
5%
10%
2011-16 2016-212011-16 2016-21
0%
5%
10%
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BP DOWNSTREAM INVESTOR DAY 8 JUNE 2017
Product & brand portfolio positioned to premium lubricants
(3) Source: Jagger Advisory LLC
Portfolio quality and brand strength3
Unit gross margin $/litre
(1) Premium products: low-viscosity engine oils (0W, 5W)
(2) Source: Kline & Company >20%
Return on sales. Higher than Coca-Cola and Unilever
0%
4%
8%
2011-16 2016-21
Market2 Castrol
Premium products1 volume CAGR
Castrol
2010 2012 2014 2016
Competition
2011-16 2016-21
0%
4%
8%
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BP DOWNSTREAM INVESTOR DAY 9 JUNE 2017
Longer term growth
DIGITAL
ACCELERATE LUBRICANTS
LOWER CARBON
MOBILITY
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BP DOWNSTREAM INVESTOR DAY 10 JUNE 2017
Continued growth and attractive returns
(1) At 2016 foreign exchange environment
LOYAL CUSTOMERS
DIFFERENTIATED TECHNOLOGY
>$0.6bn
Lubricants growth1 still to come
2016-21
STRONG BRANDS
STRONG GROWTH MARKET AND PREMIUM PRODUCT POSITIONS