BANGCHAK COR ORPOR ORATION ON PCL. ANALYST MEETING Q1/2020 May - - PowerPoint PPT Presentation

BANGCHAK COR ORPOR ORATION ON PCL. ANALYST MEETING Q1/2020

May 20, 2020

2

01 01 02 02 03 03

Q1 Q1/2020 Performance Update

TABLE OF OF C CON ONTENT

Q1 Q1/2020 Fin inancia ial Performance Busin siness ss Update Appendix ix

04

BCP PERFORMANCE

EBITDA by Business Group (MB)

517 1,073

• 2,590

Refinery Marketing Power Plant Bio-based products Natural Resources

Q1/19 Q4/19 Q1/20 736 795 770 194 374 510

• 18
• 57
• 1,227

612 359 81 214 214 620 620

• 4,6

,661

Net Profit (MB) Accounting EBITDA (MB)

Q1/19 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20

1,9 ,959 2,4 ,420

• 2,5

,546

Q1/2020 Recap:

Refinery, Marketing and Natural Resources business were severely affected from weakened cracks spread and lower oil demand due to unexpected collapse of OPEC+ alliance and the COVID-19 pandemic

Consolidated Performance (MB)

EPS

(THB/Share)

0.16 0.38

• 3.49

Net Profit(loss) attributable to the owners of the parent

3

4

BCP Group Portfolios – Q1/20 Key Takeaways

• 2,5

,590 770 770 510 510 81 81

• 1,2

,227

Refinery & Trading Marketing Power Plant Bio-Based Products

Natural Resources

81

• Marketing sales volumes slightly declined 6% YoY
• Market share at to 15.7% (Jan to Mar 2020)
• First time Inventory gain/loss allocation
• BCPG fully acquired Nam-San 3B in Laos (45 MW)

in Feb 2020

• Total electricity sales increase +48% YoY from

investment in hydropower and wind project

• Average crude run at 104.3 KBD with 87%

utilization rate

• Operating GRM declined to 2.87 $/BBL from

weakened cracks spread, lower oil demand and inventory loss

• BCPT increased trading transaction by 16% YoY
• Government advocacy campaigns, efficient

raw material management and production process pushed EBITDA +162% YoY

• OKEA solid production performance at ~19.1 kboe/d
• Realize share of loss from OKEA at 1,199 MB due to FX loss and Impairment
• Nido assets impairment of 1,366 MB

EBITDA

• 2,546 MB

Operating EBITDA 672 MB Operating EBITDA 469 MB

Operating EBITDA 1,173 MB Net Loss -4,661 MB

Note: Net loss attributable to the owners of the parent Operating EBITDA excludes Inventory gain/loss, One-time items, Gain/loss from FX forward contracts

5 10 20 30 40 50 60 70 80 90 Jan-18 Jan-18 Feb-18 Mar-18 Mar-18 Apr-18 May-18 May-18 Jun-18 Jul-18 Aug-18 Aug-18 Sep-18 Oct-18 Oct-18 Nov-18 Dec-18 Dec-18 Jan-19 Feb-19 Feb-19 Mar-19 Apr-19 May-19 May-19 Jun-19 Jul-19 Jul-19 Aug-19 Sep-19 Sep-19 Oct-19 Nov-19 Nov-19 Dec-19 Jan-20 Jan-20 Feb-20 Mar-20 Apr-20 Apr-20 May-20

• 6
• 4
• 2

2 4 6 8 10 12 14 Jan-18 Jan-18 Mar-18 Apr-18 May-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20

DTD DB DB

Crude oil price Singapore VS BCP GRM

Singapore BCP

Crude Oi Oil Price and GRM

$/BBL $/BBL

6

110.1 .1 112.7 .7 110.8 .8 116.9 .9 104.3 .3 92% 92% 94% 94% 92% 92% 97% 97% 87% 87%

• 50%
• 30%
• 10%

10% 30% 50% 70% 90% 10 20 30 40 50 60 70 80 90 100 110 120 130 140 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

3.4 .43 4.9 .95 7.6 .68 5.61 2.8 .87 0.0 .09 (0 (0.0 .09) 0.0 .02 0.4 .43 0.2 .26 (0 (0.0 .03) (0 (0.3 .33) (3 (3.7 .70) 0.0 .08 (9 (9.2 .29)

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Operating GRM Hedging Inventory Gain/Loss

Refinery Busi siness ss: : Q1 Q1/20 Acc. . EBITDA -2,5 ,590 MB (-601% Y YoY) / ) / Op Operating EBITDA 4 469 MB

• 20
• 15
• 10
• 5

5 10 15 20 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 GO/DB UNL95/DB IK/DB HSFO/DB LSFO/DB

Crack Spreads ($/BBL) GRM Performance ($/BBL) Production Profile

3.49 4.53 4.00 6.12 (6.16)

8% 6% 52% 12% 19% 3%

Q1/20

LPG Gasoline JET Diesel UCO FO

Crude run Product Yield

• Operating GRM was weakened as the crack spread is continue to decline

across the globe because of the consequences of COVID-19 Lockdown and unexpected collapse of the OPEC+ alliance, resulted in high crude oil supply and lower market demand

• Recorded Inventory loss of 2,774 MB (Including NRV) from the crude oil price

making severe downward adjustments in the Global market

• BCPT recorded larger gross profit from the increase in trading transaction by

16% YoY, especially, the Low Sulphur Fuel Oil product which demand increased from the IMO measure.

7

Bangchak Dist stribution Channel

50 100 150 200 250 300 350

Q1/12 Q1/13 Q1/14 Q1/15 Q1/16 Q1/17 Q1/18 Q1/19 Q1/20

Retail Industrial Wholesale Export

Total Sales Volume (ML/Mo) Total Sales Volume (% Portion of total sales volume in Q1/20)

RETAIL M MARKET

56 56 %

WHOL OLESALE

10 10%

EXPOR ORT

12 12%

INDUSTRIAL MARKET

22 22 %

8

Marketing Busi siness: ss: Q1 Q1/20 A Acc. . EBITDA 81 M MB (-87% Y YoY) / ) / O Operating EBITDA 672 M MB

0.71 0.83 0.77 0.70 0.79

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

715 410 410 216 200 400 600 800 1,000

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

MK HSD, MOFUEL & JET Sale Volume (ML)

HSD MOGAS JET *

*Net MKM exclude Inventory Gain/(Loss) and NVR (ML)

• Fuel consumption declined due to the impact of COVID-19 pandemic
• Industrial sales volume drastically declined from the intense competition and the

extended lockdown measures and limitation imposed on both air and ground travelling, resulting in huge drops in Jet and Diesel

• Retail sales volume slightly decreased due to the effects of the COVID-19
• utbreak during the month of March
• Net Marketing Margin increased due to the decline in finished product cost in

Q1/20 lowered significantly in accordance to the crude oil price in global market

• Inventory Loss of THB 591 million (including NRV) following to the company

allocation policy for Inventory Gain/[Loss] and NRV among Refinery Business and Marketing Business. Non Oil Business

• BCR is still developing, expanding and focusing on store

management, on top with various sale promotions led BCR to hit 27% YoY increase in revenue and 79% YoY increase in EBITDA

• BCR hosted the “You Stay Home, We Delivery for You” campaign during

the periods advocating people to stay home to curb the COVID-19 outbreak

Net Marketing Margin (Baht/Litre)

HSD, MOFUEL & JET Sale Volume (ML)

9

Marketing Network

15.6% 12.5% 12.4% 10.0% 4.2% 1.9% 1.8% 1.7% 15.7 .7% 12.0% 11.8% 9.7% 4.1% 1.7% 2.0% 1.6%

3M/19 3M/20

436 436 479 479 510 510 496 496 498 498 453 453 495 464 452 446 431 407 350 450 550 2015 2016 2017 2018 2019 3M/20

Thruput per Station (K.Litre/Mo)

BCP Standard

AVG Major oil* (excl. BCP)

Source: DOEB & BCP

Retail Sales Volume Market Share (%)

39.8% 41.4%

Promoting B10

Promoting B10 as Diesel primary grade which available in the service stations >1,000 stations across the country

10 10

Power P Plant Busi siness ss: : Q1 Q1/20 EBITDA 7 770 MB (+ (+5% YoY) )

139 148 148 150 152 15 15 15 15 15 158 158 158 158 158 14 14 14 14 14 69 69 114 326 335 404 406 452 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Solar Wind Solar Geothermal Wind Hydro

Operating Capacity (MW PPA)

72 76 70 79 75 4 5 5 4 3 8 64 34 76 81 83 147 113 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Laos JP TH

Electricity Sales (Million kWh)

Electricity sales performance +48% YoY

• Investments into the hydropower plant in Laos, the Nam San 3A

and Nam San 3B project

• COD of the wind power plant in Thailand, “Lom Ligor”
• JP sales 24% reduced, mainly from the reduction of electric power

purchased (curtailment) from Japan Electric Power Company during periods of low electricity demands

Share of profit from associated companies: YoY

• Geothermal power plant 67 MB, dropped by 25 MB.
• Performance was improved due to lower period of shutdown,
• One-time items of -67 MB (tax provision 24 MB and allowance for

account receivable of 43 MB)

• PH Wind power plant 24 MB, slightly decreased since Q1/19 had

higher storm than usual

Operating capacity rose 39%YoY from the acquisition of

Hydropower plant Namsan 3A and 3B in Laos (114 MW)

11 11

POW OWER PLANT B BUSINESS

Bio-Base sed Product B Busi siness: Q1 ss: Q1/20 E EBITDA 5 510 MB (+ (+162% Y YoY)

67 67 74 74 80 80 78 78 61 61 71 71 82 82 87 87 88 88 69 69

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Production Sales

15 20 25 30 35 40 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20

Source: EPPO

Better performed both YoY and QoQ due to the B100 price adjusted upward significantly by government’s various measures

• Despite, lower demand from seasonality and the COVID-19
• utbreak in this quarter
• The production & Sales volume were pressured from

intense competition of the Biodiesel market, in which the national production capacity increased 8% YoY

• The increase of the B100 price combined with the ability to

efficiently manage raw material resulted in improving gross profit by 472% YoY and 62% QoQ

B100 Average Price (Baht/Litre)

BIODIESEL BUSINESS (Operates by BBF)

Capacity 1,000,000 L/D Biodiesel Production & Sales Volume (Million litres)

12 12

POW OWER PLANT B BUSINESS

Bio-Base sed Product B Busi siness: Q1 ss: Q1/20 E EBITDA 5 510 MB (+ (+162% Y YoY)

Still profitable in the midst of squeezing demand and higher total national production capacity

• The intense competition within the business as well the

COVID-19 outbreak detrimentally impacted demand for Gasohol fuel consumption

• Be able to sell industrial grade ethanol for alcohol gel

and other disinfectant products

• Efficient management of raw materials cost and

improvement in production process contributing to an

increasing in gross profit by 37% YoY and 3% QoQ

• KGI plant at Bo Ploy district, Kanchanaburi had an

maintenance in January 2020 – there were 2 plants

underwent the maintenance in Q4/19

Ethanol Average Price (Baht/Litre)

ETHANOL BUSINESS (Operates by BBE & KGI)

Capacity 600,000 L/D Ethanol Production & Sales Volume (Million litres)

54 54 44 44 53 53 44 44 48 48 48 48 46 46 51 51 45 45 40 40 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Production Sales

20 22 24 26

Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20

13 13

Positive EBITDA at 1,154 MB

• Strong product combined with high production regularity resulted

in a total net production of 19.1 Kboe/d

• Revenue decrease due to lower volumes and realized prices
• The significant fall in market price of crude oil and gas during the

quarter, resulted in non-cash impairments mainly relating to technical and ordinary goodwill

• The NOK weakened significantly against the USD during the

quarter which resulted in realized FX-losses on the

• utstanding foreign currency loans

Share of loss 1,199 MB from OKEA

Natural Reso sources s Busi siness: Q1 ss: Q1/20 E EBITDA -1,2 ,277 MB

BCPR holds 46.5 % in OKEA ASA

As of February 2020

Production Volume - Net to OKEA (kboe/d)

0.4 0.3 0.3 0.3 0.4 8.6 9.2 9.7 8.8 8.9 10.49 10.50 8.14 7.84 9.81 19.5 20.0 18.1 17.0 19.1 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Source: OKEA

Ivar Assen Gjoa Draugen

56.2 60.7 56.4 61.2 48.4 6.5 4.1 3.0 3.5 2.7 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Gas Price ($/MMBTU) Liquid Price ($/boe)

Realized Prices

14 14

TABLE OF OF C CON ONTENT 01 01 02 02 03 03

Q1 Q1/2020 Performance Update Q1 Q1/2020 Fin inancia ial Performance Busin siness U ss Update Appendix ix

04

15 15

Conso solidated

• Impairment

BCP Conso solidated

OKEA’s Impairment on Goodwill (2,095) MB

Other items

PAT (2,594) MB

Share loss (1,199) MB*

* incl. with accounting items

Q1/20 Highlights

Loss from Loan (1,156) MB Loss from Investment (1,604) MB Impairment (2,759) MB

Conso solidate FS FS TFRS 9 TFRS 16 Total impact

Assets 97 7,494 7,591 Liabilities 198 7,480 7,678 Impairment of E&E asset (1,366) MB Impairment on Inventories & others (15) MB Nido’s Impairment (1,381) MB

BCP

• TFRS 9 - Financial instruments standards
• TFRS 16 - Leases

Loss from Investment (231) MB Loss from Loan (1,016)

Impairment (1,247) MB

Investment in OKEA NAV ≠ book value => Impairment

Same proportion of the diff. The rest

16 16

Unit: MB Q1/20 Q1/19 YoY Revenue 35,157 39,650

• 11%

Cost of goods sold (37,646) (38,675)

• 3%

Gross Profit (2,489) 975 N/A Dividend Income 224

• N/A

Other Income 128 95 35% Selling expenses (772) (697) 11% Administrative expenses (390) (402)

• 3%

Loss from derivatives (338) 32 N/A Gain from foreign Exchange 2 17

• 88%

Loss from impairment of assets (1,835)

• N/A

Profit (Loss) from operating activities (5,470) 20 N/A Finance costs (229) (288)

• 20%

Impairment gain(loss) (TFRS9) (2,234)

• N/A

Profit (Loss) before income tax expense (7,933) (268) N/A Tax income expense 1,616 45 N/A Profit (loss) for the period (6,317) (223) N/A Unit: MB Q1/20 Q1/19 YoY Revenue 35,157 39,650

• 11%

Cost of goods sold (37,646) (38,675)

• 3%

Gross Profit (2,489) 975 N/A Dividend Income 224

• N/A

Other Income 128 95 35% Selling expenses (772) (697) 11% Administrative expenses (390) (402)

• 3%

Loss from derivatives (338) 32 N/A Gain from foreign Exchange 2 17

• 88%

Loss from impairment of assets (1,835)

• N/A

Profit (Loss) from operating activities (5,470) 20 N/A Finance costs (229) (288)

• 20%

Impairment gain(loss) (TFRS9) (2,234)

• N/A

Profit (Loss) before income tax expense (7,933) (268) N/A Tax income (expense) 1,616 45 N/A Profit (loss) for the period (6,317) (223) N/A

• Loss from derivatives
• Oil Hedging

78 MB

• FX Hedging (416) MB
• Impairment of assets
• BCPE (Nido) 1,604 MB
• BCPR (OKEA)

231 MB

• Impairment loss under TFRS 9: from loan to Subsidiaries

mostly Nido and BCPR SG

• Gross Loss was recorded at 2,489 MB

Q1/20 Inventory loss 3,286 MB (incl. NRV -1,582 MB)

(Unit: $/BBL) Q1/20 Q1/19 Operating GRM 2.87 3.43

• Inv. G/L

(9.29) (0.03) Hedging 0.26 0.09 Accounting GRM (6.16) 3.49 Q1/20 Q1/19 Average selling price (THB/L)

19 21

Sales Volume (ML)

1,829 1,904

• Revenue decreased from decline in both sale volume and price

Statement of Income: BCP Only

17 17

Unit:MB Q1/20 Q1/19 YoY Revenue 43,070 45,535

• 5%

Cost of goods sold (44,287) (43,355) 2% Gross Profit (1,216) 2,181

• 156%

Other income 105 118

• 11%

Selling and administrative expenses (1,762) (1,721) 2% Exploration and evaluation expense (0.2) (4) N/A Gain (loss) from derivatives (360) 18 N/A Gain (loss) on foreign exchange 326 57 N/A Loss from impairment of assets (1,404)

• N/A

Profit (Loss) from operating activities (4,311) 649

• 765%

Finance costs (464) (443) 5% Impairment gain(loss) (TFRS9) 5

• N/A

Share of profit(loss) of associate and JV (1,082) 157 N/A Profit (Loss) before income tax expense (5,852) 363 N/A Tax income (expense) 1,536 32 N/A Profit (loss) for the period (4,316) 395 N/A Owners of the Company

• 4,661

214 Non-controlling interests 345 181

• Gain on Foreign Exchange 326 MB: BCPG’s subsidiary changed its

functional currency THB to USD

Bongkot Marine Services 9 MB Ubon Bioethanol Plc. 16 MB Petrowind Energy Inc. 24 MB Star Energy Group Holdings Pte. Ltd 67 MB OKEA ASA*

• 1,199 MB
• 1,082 MB

* Profitable on operation, but end result loss from impairment and foreign exchange

BCP Group EBITDA (MB)

• Share of Loss of Associate and JV

Statement of Income: Consolidated

BCP BCPG BBGI CONSO NT BU Others

• 2,240
• 1,227
• 359

769 510

• 3,826
• 2,546

18 18

Statement of Financial Position

Assets 31 Mar 20 31 De19 ∆ Cash and cash equivalents 10,605 7,564 3,041 Trade and other current receivables 8,281 11,073 (2,791) Inventories 13,602 15,835 (2,233) Oil fuel fund subsidies receivable 3,403 2,688 715 Current tax assets 476 461 15 Long-term Loan/Investments 19,628 21,142 (1,514) Goodwill 2,175 1,921 255 Investment properties, PP&E 54,190 52,711 1,479 Intangible assets 11,127 8,494 2,633 Right-of-use of assets 10,969 3,125 7,844 Deferred tax assets 2,880 1,121 1,759 Other current financial assets (Derivatives) 159

• 159

Non current assets 1,686 1,654 33 Total Assets 139,182 127,788 11,394 Liabilities & Equities 31 Mar 20 31 De19 ∆ Account Payable 8,769 13,447 (4,678) Long-term provisions

• 733

(733) Current liabilities 2,387 2,625 (238) Lease liabilities 7,893 61 7,832 Loans and debentures 62,377 48,041 14,336 Provisions for employee benefits 2,496 2,588 (92) Other current financial liabilities (Derivative) 654

• 654

Non current liabilities 1,217 1,477 (260) Total liabilities 85,794 68,973 16,821 Equities 53,389 58,815 (5,426) Total Liabilities and Equities 139,182 127,788 11,394

TFRS 16 : Lease TFRS 9 : Financial Instruments

Unit:MB

19 19

54,063 52,584 48,593 37,583 4,038 3,149 13,602 15,835 8,281 11,073 10,605 7,564 31 Mar 20 31 Dec 19

Global oil prices decline as demand dries up Current Assets

• Account Receivable 2,791 MB mostly from BCPT’s AR dropped in the

respect of declining price of finished product

• Inventories 2,233 MB due to the declining average cost per unit of

remaining oil, NRV 1,689 MB

Unit: MB

Assets Non Current Assets +29%

• Right-of-use assets and Leasehold rights

7,844 MB from first-time adoption TFRS 16

• Goodwill and Intangible assets

2,858 MB from BCPG acquired Namsan 3B

Effect of TFRS 9

Statement of Financial Position

Cash & Cash Equivalents Current Asset PP&E Accounts Receivable Inventories Non Current Assets

139,182 127,788

20 20

53,389 58,815 10,152 4,098 62,377 48,070 4,496 3,358 8,769 13,447 31 Mar 20 31 Dec 19

Unit: MB

Interest Bearing Debt +30%

• Mainly from BCPG funding for acquisition of Nam San 3B project

and BCP liquidity management

Equities -9%

• Net loss of -4,316 MB
• Dividend payment of 503 MB
• Other comprehensive income 514 MB

Q1 Q1/20 Q1 Q1/19 1.01 0.80

Lower oil price affected Account Payable –35%

• mainly from the declining in quantity and price of crude purchased lowering

during March 4,678 MB Net Interest bearing Debt to Equity

Statement of Financial Position

Liabilities & Equities

Account Payable Interest Bearing Debt Equity Current Liabilities Non Current Liabilities

139,182 127,788

Non Current Liabilities +148%

• Lease liabilities 6,354 MB

Effect of TFRS 16 (First time adoption) Current Liabilities +33%

• Current portion of lease liabilities increased 1,510 MB

21 21

Beginning Cash 7,276 MB Ending Cash 10,605 MB FX adjustment MB 146 Cash movement 3,183 MB

Statement of Cash Flow

653 13,759 123 (7,835) (4,310) (4,260) (1,022)

Debt Service PP&E Investment in Subsidiaries & Asso. Tax paid & Others Others Funding Cash from Operation

Unit: MB

Sources of Cash 14,535 Uses of Cash (11,352)

22 22

Debt obligations

22,717 29% 28,986 36% 9,494 12% 7,997 10% 10,000 13%

Consolidated 79,193 MB

Perps Bond Baht Bond Baht Loan USD Loan

May 2020 Outstanding (MB)

28,986 64% 2,593 6%

10,000 22%

3,576 8%

JPY Loan

BCP only

Baht Bond Baht Loan

45,155 MB

USD Loan Perps Bond

2.10 1.01

Dec-19 Mar-20

DSCR

0.69 1.01

Dec-19 Mar-20

Net IBD to Equity Ratios (Times)

Baht bond: big amount

• 3,000 MB due in Aug 20
• 2,500 MB due in Apr 21

+ Bond 8,000MB 1.16x

23

TABLE OF OF C CON ONTENT 01 01 02 02 03 03

Q1 Q1/2020 Performance Update Q1 Q1/2020 Fin inancia ial Performance Busin siness U ss Update Appendix ix

04

24 24

Safety M Measu sures Busin siness C ss Contin inuit ity Measu sures

BCP group implemented measures and plan to protect our employees and business in this pandemic. The

• ngoing situation has been closely

monitored and systematically handled The company

• Adjusted production & marketing plan
• Lowered expenses & investments
• Carefully managed liquidity
• Set up Innovation Continuity Task

Force committee The company has been supporting both government and the public sectors through various social activities as well as “Bangchak Group Stronger Together”

Corporate Socia ial Resp sponsib sibil ilit ity

The COVID-19 outbreak is causing widespread impact across the globe

CO COVID VID-19 19

Pan ande demic mic

BCP Gr Group Mitigation Plan

25 25

Safety Measu sures

BCP group has announced measures to prevent and control the spread of the COVID-19 The ongoing situation has been closely monitored and systematically handled

“ Business Continuity Management [BCM] ” encompasses the Epidemic Crisis Management Plan Continuously operate

• Adjust its operation hours for employees working in shifts to coincide with curfew measures
• Confine the perimeters of the control room building to provide an entryway for only related individuals
• Prepare areas as a makeshift living quarter in circumstances where the outbreak has become widespread

Boost the confidence of customers at service station

• Strictly manage hygiene at various touch points
• Require the forecourt staff to wear medical mask

and measure body temperature

• Provide alcohol gel for cleaning hands at cashier

boxes and at dispensing areas

• Implement strict measures to prevent and control the

spread of COVID-19

• Utilize technologies to proceed the operations

smoothly

“Work From Home” policy

26 26

Production

Some revisions was implemented on main activities

• Closely monitor the market to adequately adjust the

production levels

• 20% reduce in production from the plan
• Amended the Turn Around Maintenance [TAM] plans -

split in 2 phases 2020 and 2021

• CCR installation will be completed,

COD in October 2020

• HCU debottlenecking is tied in with

TAM in 2021

3E project will be completed in 2021 3E Project: Increase Competitiveness 2020 Estimated benefit ~300 MB Maximize Value from current assets

Busi siness ss Continuity Measu sures

27 27

Busi siness ss Continuity Measu sures

Network Expansion

60 54

Some investments may be delayed Service Stations

+160 stores

Focusing more on Inthanin The Grocer will be in all Bangchak stations in JULY

Hi Hi-Die iesel

Launch marketing campaigns to boost sales

• Enhance Loyalty Program
• Issuing promotions through Loyalty programs, including

collaborations between business alliances

• Go Online & Delivery and Cross Selling Activities

Marketing

27

28 28

Busi siness ss Continuity Measu sures

Marketing ing

28

Petrol Products Good & Services QR code e-Wallet Mobile Banking Debit & Credit card

Pay for Pay by

BCP member cards and will extend to partners’

Link with

Start from Jun 2020 in Bangkok & vicinity and will extend to regional area

29 29

Busi siness ss Continuity Measu sures

Financials

Liquidity Management

• Manage working capital to coincide with operations
• Manage debts to be paid on time
• Secure funds, both short term loans and long term

loans as a contingencies for circumstances

• Successfully issued 8,000 MB debenture in May 2020

Reevaluate and adjust OPEX & CAPEX

• Cut, delay, or postpone low priority projects
• Follow the principles of law and must give utmost regard to safety

OP OPEX

≈20%

20%

CAPEX

≈20

20%

Innova vation Continuity Task sk Force

• Develop the incumbent business or devise ways to

implement new businesses

• Find alternate sources of earnings and keep pace

New Normal

“Postponement must not hinder the core business”

29

Refinery 24% Marketing 5% BCPG 66% Bio-based Products 5% Others 0.4%

CAPEX Plan

22,8 ,800 MB

MB

30 30

Corporate Social R Resp sponsi sibility

Bangchak’s mission under the “Bangchak Group Stronger Together” circumscribing all stakeholders

THANK Y YOU OU

Disclaimer er The information contained herein is being furnished on a confidential basis for discussion purposes only and only for the use of the recipient, and may be subject to completion or amendment through the delivery of additional documentation. Except as otherwise provided herein, this document does not constitute an offer to sell or purchase any security or engage in any transaction. The information contained herein has been obtained from sources that Bangchak Corporation Public Company Limited (“BCP”) considers to be reliable; however, BCP makes no representation as to, and accepts no responsibility or liability for, the accuracy or completeness of the information contained herein. Any projections, valuations and statistical analyses contained herein have been provided to assist the recipient in the evaluation of the matters described herein; such projections, valuations and analyses may be based on subjective assessments and assumptions and may utilize one among alternative methodologies that produce differing results; accordingly, such projections, valuations and statistical analyses are not to be viewed as facts and should not be relied upon as an accurate representation of future events. The recipient should make an independent evaluation and judgment with respect to the matters contained herein.

ir@bangchak.co.th

• Tel. +66 2335 8663 / 8518 / 4370

www.bangchak.co.th