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16th July 2001
successful partnering. costs.This document. demand and pricing. forwardlooking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and are outside the control of BP. market share and margins. volumes. Additional information including information on factors which may affect BP’s business. currency exchange rates. July 2001 . and in particular the deal summaries and key financials. synergies. the actions of competitors and other changes to business conditions. contain certain forward-looking statements. earnings. By their nature. is contained in BP’s Annual Report and Accounts for 2000 and in the Annual Report on Form 20 –F filed with US Securities and Exchange Commission. inter alia. prices. value. economic growth in relevant countries. Actual results may differ materially from those expressed in such statements for many reasons including levels of industry product supply. returns. sales. with respect to.
Lord Browne Group Chief Executive .
ON views as strategic ´ BP .accesses leadership position in major market .E.Strategy and Opportunity Corporate Strategic Fit ´ Focused strategic resources – realise full value of Ruhrgas ´ Important markets – Germany ´ Valuable brands – ARAL Unique Opportunity ´ Ruhrgas .accesses material value High Quality Transaction ´ Accretive to Group earnings and returns ´ Acquisition accounting Subject to Regulatory Approval .
Doug Ford Managing Director .
63bn* plus $0.5% share of Ruhrgas 51% of Veba Oil E.ON option to Put remaining 49% of Veba Oil after 1Q2002 BP option to Put remaining 49% of BP’s shares in Ruhrgas after 1Q2002 .86 Subject to Regulatory Approval . expected by early 2002 *Subject to Certain adjustments $/€ exchange rate 0.BP Pays net cash of $340m Opens up integration cost synergies of at least $200 million pa BP review likely to lead to sale of material but non-strategic upstream assets–retaining proceeds with sharing mechanism above a threshold price Subject to regulatory approval.95bn debt 51% of BP’s 25.Transaction Details BP cash consideration contributes BP acquires $1.
1999: BP Estimate using E.ON data. 2000: Audited Data from E.ON .Asset Earnings History Veba Oil Downstream & Petrochemicals Estimated EBITDA $m 1000 800 600 400 200 0 Average 98-00 $656m pa 1998 1999 2000 1998: BP Estimates.
ON .5% Ruhrgas Operating Dividend $m Post Tax 200 100 0 1998 1999 2000 Average 98-00 $656m pa Average 98-00 $70m post tax p. 1998 1999 2000 1998: BP Estimates.a.ON data. 2000: Audited Data from E. 1999: BP Estimate using E.Asset Earnings History Veba Oil Downstream & Petrochemicals Estimated EBITDA $m 1000 800 600 400 200 0 BP 25.
a.Asset Earnings History Veba Oil Downstream & Petrochemicals Estimated EBITDA $m 1000 800 600 400 200 0 BP 25. 2000: Audited Data from E.5% Ruhrgas Operating Dividend $m Post Tax 200 100 0 1998 1999 2000 Average 98-00 $656m pa Average 98-00 $70m post tax p. Veba Oil Upstream 2000 EBITDA Production Proven reserves Probable resources Possible resources $418m 159 mboed 604 mmboe 155mmboe 366 mmboe 1998 1999 2000 1998: BP Estimates.ON data. 1999: BP Estimate using E.ON .
Downstream Strategy Implementation Amoco & Arco Castrol China Mobil Veba Oil Market share BP + Aral > 18% 10-18% < 10% [ [ [ [ coast to coast #1 in USA leading global lubricants player investing for growth in retail strengthening BP in Europe BP Data Subject to Regulatory Approval .
908 Exxon 5.341 8.540 Agip 1.170 Subject to Regulatory Approval .869 TFE 9.975 Shell/ Dea 9.Positioning BP in Europe Europe Retail Market Share (%) 16 14 12 10 8 6 4 2 0 BP pre.089 Repsol 3.355 Source: BP & PFC Data BP & Aral Chosen Markets BP & Aral 10.BP post Mobil Mobil # of sites 5.
Market Leader in Germany Marketing Efficiency Ratio Market Efficiency High Low 0-5% 5-10% 10-15% Market Share 15-20% 20-25% 25-30% Source: MWV 2000 Subject to Regulatory Approval Subject to Regulatory Approval .
BP + Aral Subject to Regulatory Approval .Retail Deal impact 0 Central Europe 100 200 300 0 100 Europe 200 300 Retail customers Retail volume Number of sites Convenience sales BP Source: BP data.
Retail Marketing A leading brand added to the portfolio .
084 Veba Oil** 314 BP Veba * Adjusted for 100% Mobil **Veba Oil Share .Accounts 2000 .BP & Veba Oil Refinery Interests in Europe 2000 Throughput (000bpd) BP* 1.
Deal Summary BP acquires majority of Veba Oil BP realises full value of Ruhrgas BP/Aral fuels market leadership in Germany & Austria Opens up integration cost synergies of at least $200m pa – restructuring costs of $200m over 2 years Estimated to be accretive to Group earnings and returns in 2002 Subject to Regulatory Approval .
Question & Answer Session Lord Browne Group Chief Executive Doug Ford Managing Director .