Dear colleagues, Following the anno

Dear colleagues,

Following the announcement of BP’s 2015 Group performance rating, I can now confirm that Lubricants has received a rating of ahead of plan expectations, at 1.6 (target = 1.0) for the 2015 annual cash bonus plan. This was based on the Executive Team’s assessment of our performance last year, against all aspects of our 2015 entity plan. We have been through some tremendous challenges and changes during the last year and I believe that this rating shows how strong our Lubricants team is and that is thanks to all of you.

As a reminder, your ACB payment is determined by:
Group performance which is the company’s overall performance
Performance of Lubricants during 2015
Your individual performance as assessed by your line manager using My Plan

(Please see an illustration of how this is calculated below)

I’d like to reflect on our performance in terms of safety, people and financial performance:

Safety
Our overall safety performance improved last year, but we mustn’t forget that we had one fatality when a motorcyclist collided with one of our company car drivers in Vietnam. This tragic accident reminds us that we cannot afford to be complacent. We also had eight severe vehicle accidents. That said, we saw some good road safety performance, particularly in some of our high-risk countries, and some great safety performance at our plants: Four sites accomplished more than 15 years without a day away from work during 2015, Nha Be, Patalganga, Shenzhen and Merak and many other sites delivered an excellent safety performance.

People
Over the last year we have gone through a huge amount of change as we worked to simplify and standardise our business. I want to thank you for all you have done and the support you have shown each other during the year. Looking ahead, we will continue to embed our new organisation and carry on building our capabilities. Thank you for taking the time to complete the first of our One Castrol Heartbeat surveys. We will be sharing the results and where we need to focus in the coming weeks, and we will be running the survey two more times in 2016. I look forward to hearing your views about how we can make our business even stronger and how we can work together to make that happen.

Performance
In terms of financial performance there is no doubt that 2015 was a fantastic year for the whole Lubricants business. We delivered above plan and contributed very strongly to the overall Downstream results for BP. Our full year result for 2015 was $1,384m of underlying replacement cost profit, making us a significant contributor to the success of Downstream and BP, and an increase of 20% when compared to 2014 at like-for-like exchange rates. This was delivered during a significant transformation and in the face of some tough economic conditions.

How your ACB is calculated
Further details of your ACB will be available from your line manager as part of your annual pay discussion, including the outcome on the individual performance element.

Here is an example so that you can see how your bonus will be calculated based on our Lubricants performance rating, the Group rating and your individual performance: