John Browne

1
John Browne

• strategy overview

2
strategy

• choice create distinctive set of investment
  opportunities
• upstream bias
• invest or divest to realise value
• choice improves quality
• financial discipline balance cash in and cash
  out over time at standardised assumptions
• productivity strategic focus - right level of
  costs
• gross margin maximised with centrally allocated
  capital and costs
• choice combined with discipline and productivity
  leads to long term growth with competitive returns

3
dividends
5 year 20 year dollar dps 4 7 inflation 2
3
5 year 20 year sterling dps
7 7 inflation 2 4
CAGR
CAGR
10
10
8
8
6
6
4
4
2
2
0
0
dollardps
inflation
sterling dps
inflation
dollar dps
inflation
sterling dps
inflation
5 year average
20 year average
4
strategy key points

• finding reserves
• building new upstream profit centres
• investment and returns upstream
• growth in refining, oil products marketing
  petrochemicals

5
upstream

• disproportionate share of largest / lowest cost
  fields

discoveries gt 250mmboe1998 - 2002

• 1998 - 2001
• highest reserve replacement added by exploration
  alone (119)
• lowest finding cost (0.95/boe)

25
20
15
range
10
5
0
major competitors
BP
source company reports
source Wood Mackenzie
6
superior opportunity set
relative production capacity new profit centres
2002
2007
ca. 20 of total
ca. 40 of total
BP projection
7
building new profit centres
ROACE 10 9 10 11 12 14
proforma ROACE estimated using standardised
assumptions
source BP capacity projections 2003 - 2007
8
upstream summary
ROACE 13 12 12
12 12 13
proforma ROACE estimated using standardised
assumptions
source BP capacity projections 2003 - 2007
9
refining marketing

• proforma capital employed broadly flat
• asset high grading continues
• cost focus
• gross margin growth potential
• ROACE at standardised assumptionsexpected in
  12-14 range

10
petrochemicals

• focus on 7 advantaged products
• competitively advantaged gross margin structure
• capital employed broadly constant
• ROACE at standardised assumptions -3 expected
  by 2006

11
business segments
upstream Tony Hayward gas, power
renewables Ralph Alexander refining
marketing John Manzoni petrochemicals Iain Conn