Bangchak Corporation PLC Analyst Meeting Q3/2017 November 17, 2017 - - PowerPoint PPT Presentation

Bangchak Corporation PLC

Analyst Meeting Q3/2017

November 17, 2017

Performance Summary

BCP Group Portfolios

Bangchak Corporation Plc.

3

Bio - Based Products Resources Green Power Plant Marketing

• Retail Sales Volume continue to grow

(6%YoY)

• Net MKM was squeezed from the lag

time in retail price adjustment for higher global crude oil price

Refinery

• High Crude Run at 110 KBD
• Satisfactory Market GRM at 6.66 $/BBL
• Inventory Gain of 450 MB
• Low season for solar projects in

Thailand & Japan

• Geothermal plant in Indonesia started

contribute to EBITDA performance

Accounting

3,580 MB

3Q17 EBITDA Performance

Operating

3,165 MB

28%

YoY

• Cycle

for cassava based ethanol continue to have cost advantage

• Biodiesel performance recovered from

higher sales volume and decreased stock loss

• BCPI paid for additional investment in

LAC (current shareholding 16.1%)

• Nido recorded impairment cost of 1,368

MB from its withdrawal from Mid-Galoc appraisal well

EBITDA Performance - BCP Group

Bangchak Corporation Plc.

4

1/ Profit attributable to owners of the Company Unit: THB Million

Accounting EBITDA Q3 Comparison

1,174 993 1,316 3,855 4,393 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000 Q3/16 Q2/17 Q3/17 9M/16 9M/17

Unit: THB Million

Net Profit 1/ 2.80 3.19 0.85 0.72 0.96

Unit: THB/Share

EPS 2,198 474 781 159 44 1,503 607 612

• 65

171

2,798 MB

3,580 MB

Q3/2017 Refinery Marketing Power Plant Bio-Products Resources

Refinery Marketing Power Plant Bio-Products Resources

Q3/2016

EBITDA Performance - BCP Group

Bangchak Corporation Plc.

5

1/ Profit attributable to owners of the Company Unit: THB Million

Accounting EBITDA 9M Comparison

1,174 993 1,316 3,855 4,393 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000 Q3/16 Q2/17 Q3/17 9M/16 9M/17

Unit: THB Million

Net Profit 1/ 2.80 3.19 0.85 0.72 0.96

Unit: THB/Share

EPS 5,340 1,999 2,276 397 270 3,389 2,531 1,991 195 252

8,302 MB

10,169 MB

9M/2017 Refinery Marketing Power Plant Bio-Products Resources

Refinery Marketing Power Plant Bio-Products Resources

9M/2016

BCP Group Portfolios

Bangchak Corporation Plc.

6

Bio - Based Products Resources Green Power Plant Refinery Marketing

Refinery Business – Going beyond limit

Bangchak Corporation Plc.

7

64 112 116 114 110 114 110.03 53% 93% 96% 95% 92% 95% 92%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10 20 30 40 50 60 70 80 90 100 110 120 130 140

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Crude Run Utilization

44% 29% 22% 46% 71% 78%

Q3/16 Q2/17 Q3/17

12% 15% 10% 1% 2% 3% 55% 50% 52% 11% 12% 13% 19% 17% 20% 3% 2% 3%

3Q/16 2Q/17 3Q/17

TAM = Turnaround Maintenance Period

Production Profile

Actual Crude Run Unit: KBD

TAM

Product Yield

LPG Gasoline Jet Diesel Fuel Oil UCO

Maximize high value product

Crude Sourcing

Diversify Crude Sourcing: Satisfactory GRM regardless of the changing crude sources

Domestic Import

(TAM)

2017 Target 111 KBD

Still running at an

• ptimal high rate

Accounting GRM

5.62 6.38 6.66 0.03 0.63 0.20 0.32

• 2.82

1.32

Refinery Business – Going strong

Bangchak Corporation Plc.

8 Refinery EBITDA

Unit: THB Million

Unit: THB Million

GRM Performance

Unit: $/BBL 8.18 4.18

Inventory Gain Loss Oil Hedging Market GRM

5.97

Most product crack spread was higher, boosted higher Market GRM, despite widening DTD/DB Completion of COGEN power plant help with refinery stability and lower electricity cost Hydrocracker unit malfunction result in its operation to run sub-optimally BCP Trading Pte. Ltd. contribute EBITDA 7 MB

Q3/17: Performance going strong

Crude Price & Crack Spreads ($/BBL)

1,503 916 2,198 1,383 1,926 1,748 Q3/16 Q2/17 Q3/17 Accounting Operating

Q3/16 Q2/17 Q3/17

• 2

2 4 20 40 60 80

Q3/16 Q4 Q1/17 Q2 Q3

DB DTD/DB

• 5

5 10 15 20

Q3/16 Q4 Q1/17 Q2 Q3

GO/DB UNL95/DB FO/DB

Distribution channel – Retail market is our main priority

Bangchak Corporation Plc.

9

Push forward higher sales volume through the highest margin channel Total Sales Volume

235 251 259 284 307 311 163 181 186 179 190 161 45 64 47 51 86 57 55 69 92 93 82 98 50 100 150 200 250 300 350

Unit: Million Litre / Month

Total Sales Volume Retail Market Industrial Market Wholesales Exports

Unit: % Portion of total sales volume in 3Q2017

9% 26%

50%

16%

Retail Market Industrial Market Wholesales Export

Marketing Business

934 ML 483 ML 170 ML 295 ML

Marketing Performance – Retail market is our main priority

Bangchak Corporation Plc.

10 Marketing EBITDA

Unit: THB Million

Unit: THB Million

607 669 474 609 674 455 Q3/16 Q2/17 Q3/17 Accounting Operating

Net Marketing Margin

Unit: Baht/Litre

1.04 1.06 0.94 0.38 0.43 0.33 Q3/16 Q2/17 Q3/17 Net Retail Margin Net Industrial Margin 0.80 0.83 0.73 Retail sales volume grew 6% YoY, but declined 2% QoQ due to rainy season Industrial sales volume declined from the higher sales push through retail market, flooding in some areas, and temporary intense price competition Marketing Margin declined from the lag time of retail price adjustment when global crude oil price increase

Q3/17: Slight decline from seasonal effect

Marketing Network – Increasing Market Share & Thruput per station

Bangchak Corporation Plc.

11 Market Share

(Retail Channel)

Jan-Sep’16 Jan-Sep’17 ∆

37.0% 36.5%

15.0% 15.3%

12.9% 12.5% 12.9% 13.0% 5.7% 5.1% 5.0% 4.7% 1.8% 1.8% 7.9% 9.4% 1.6% 1.6%

Unit: K.Litre/Station/ Month

Thruput per station

15.3%

348 392 435 479 504 416 416 450 464 452 494 528 540 573 570 2013 2014 2015 2016 9M2017 BCP Standard AVG Major Oil BCP COCO

Several initiatives to boost BCP’s thruput:  optimize current network  partnership with SPAR  new premium products  etc.

*AVG Major Oil : PTT, ESSO, SHELL, CALTEX

Bangchak Service Station - Greenovative Experience

Bangchak Corporation Plc.

12 Standard Type

481 sites

COOP Type

612 sites

+35

New Service Stations

9M2017

service stations as of September 2017

1,093

Bangchak Non-Oil Business – Progression

Bangchak Corporation Plc.

13

421

9M17

+50 branches

branches branches

9M17

+19 branches

25 stores

stores

R&M Performance Refinery and Marketing business to extract benefit of the value chain

Bangchak Corporation Plc.

14

Refinery Business earning was volatile due to market conditions and Turnaround maintenance (TAM) Marketing Business Captures a Demand Surge During Low Oil Price Environment

R&M as a fully integrated model profit can be optimized through business cycle

8.34 5.88 6.96 9.05 5.99 6.70 3.31 2.68 3.47 3.53 3.53 3.69 2012 2013 2014 2015 2016 9M2017 Net MKM Market GRM Unit: $/BBL

Normalize Integrated Margin

$11.66 $ 8.56 $ 10.43 $ 12.58 $ 9.52 $ 10.39

BCP Group Portfolios

Bangchak Corporation Plc.

15

Bio - Based Products Resources Green Power Plant Refinery Marketing

Green Power Plant – Growing Capacity

Bangchak Corporation Plc.

16 Green Power Plant EBITDA

Unit: THB Million

61 68 65 8 14 13

Q3/16 Q2/17 Q3/17

Thailand Japan

Electricity Sales of solar power plant

Q3/17: Expanding coverage as planned

Wind

PPA: Philippines 14.4 MW (net to BCPG) Low season led to less wind speed at project site PPA: Thailand 130 MW / Japan 30 MW QoQ lower performance from low season (rainy season) both in TH and JP led to lower irradiation YoY higher performance from operation commencement of various projects both in TH and JP

Solar Geothermal

PPA: Indonesia 182 MW (net to BCPG) Share of profit from Jan – Sep’17 was recorded in Q3/17 altogether

Unit: Million kWh

612 789 781 Q3/16 Q2/17 Q3/17 Accounting

Bio-Based Products – Biodiesel business back on good track

Bangchak Corporation Plc.

17 Bio-Based Products EBITDA

Unit: THB Million

Unit: THB Million

• 60

93 8 88 68 121 41 41 74 74

• 3
• 3

9 9 17 17

• 70
• 20

30 80 130 180 230 Q3/17

Accounting Operating

Biodiesel Bangchak BioEthanol Ubon BioEthanol Q2/17 Q3/16

• 65

89 59 139 159 213

Performance recovered from higher sales volume and decreased inventory loss B7 mixing portion throughout all quarter

Biodiesel

452 669 689 478 672 682 Q3/16 Q2/17 Q3/17 Daily Production Sales Volume

Biodiesel Plant: Production and Sales Volume

Unit: K. Litre per day

B7 B5-B7 B3-B5

127 91 129 118 94 121 Q1/17 Q2/17 Q3/17 Daily Production Sales Volume

BBE Ethanol Plant Production and Sales Volume

Unit: K. Litre per day

Ethanol

Both plants benefit from declining cassava price while ethanol price increased

Resources Business

Bangchak Corporation Plc.

18

EBITDA contribution positive at 44 MB Galoc oil filed uptime was 99.98% Nido Sales Volume was lower corresponding to the Natural-Decline Production Curve Impairment cost of 1,368 MB

3Q/17: E&P

Target

G7 impairment of USD 40 million (Mid Galoc Area)

• G7 (appraisal well) showed lower than

expected resource

• Not Economic to develop

(based on oil price at 55-65 $/BBL)

• Impair all G7 (Mid Galoc) value in the book

Oil Demand & Supply (Incremental Basis)

• 1.0
• 0.5

0.0 0.5 1.0 1.5 2.0

Million BBL/Day

Demand Supply

• Fundamentally, Market still weak in 2018 because of shale
• il in USA and oil production in Canada
• Oil price increase in spot market, with backwardation trend
• Yet, Higher outlook ~ US$ 55 /BBL

2016 2017 2018

BCP Implication

New Venture Business

• Market become more active
• Focus on low OPEX assets
• Partnerships

Hedging opportunity Prolong economic cut off for Galoc oil field

Lithium Americas – LAC plan for NYSE listing

Bangchak Corporation Plc.

19 As of 8 November 2017, LAC made 1-for-5 reverse stock split Numbers of BCPI shares in LAC changed from 70,286,757 to 14,057,351 shares % of shareholding is unchanged at 16.1%

2 4 6 8 10 12 14 BCP invested 37 MUSD @3.5 CAD/Share

LAC share price movement

(adjusted for reverse stock split effect)

plan for listing in within December 2017

• BCPI signed offtake agreement for 20% of LAC’s right in

Lithium produced from Cauchari-Olaroz (Phase I) for 20 years

• Unrealized profit from holding LAC shares as asset

available for sale booked in Other comprehensive income of 1,684 MB for 9M2017

Financial Performance Update

3Q/17 Quarterly Remarks – From Financial Aspects

Bangchak Corporation Plc.

21 BCPG Plc.

 Invest 356 MUSD in Star Energy group  Loan draw down of 8,851 MB for foreign operations  2017 Interim dividend paid of 299 MB  Loss from FX forward contract of 255 MB

BBGI Co., Ltd.

 Amalgamation with KSLGI completed in 31 Oct’17 (BCP holds 60% in the amalgamated company) effect of the amalgamation will be realized in 4Q/17 performance for 2 months

BIO

Bangchak Corporation Plc.

 Gross Profit increased from Inventory gain of 450 MB (company only)  Assets growth by 5,572 MB compared to 31 Dec’16  Corporate Income Tax return of 671 MB Tax refund for the year 2009 and 2010

3Q/17 Quarterly Remarks – From Financial Aspects

Bangchak Corporation Plc.

22 BCP Innovation Pte. Ltd.

 Increased registered share capital by 1,100 MB  Invested 32 MUSD to increase shareholding in Lithium America Corp. (LAC) from 5.2% to 16.1% (2nd largest shareholder)

BCP Energy International Pte. Ltd.

 Increased registered share capital by 37 MB

Key Financial Performance - Consolidated

Bangchak Corporation Plc.

23

Gross Profit Mainly increased from Refinery 450 MB inventory gain compare to 35 MB and 1,096 MB inventory loss in Q3/16 and Q2/17 respectively

Remark:

Other Income Mainly increased from a compensation from construction project of 141 MB. (Q2/2017 record a gain from the reversal of provisions from SunEdison acquisition of 140 MB) SG&A Increased from expenses in Non-oil business, HR-related, financial advisory expenses, and higher depreciation Loss on FX forward contracts Mainly from BCPG forward contracts resulting from THB appreciation Gain on Foreign Exchange Mainly from the company group’s foreign currency liability, resulting in a gain as THB appreciated

Statement of Income

3Q16

(Restated)

2Q17 3Q17 Revenue 36,686 42,828 39,009 Cost of goods sold (33,780) (40,465) (35,450) Gross Profit 2,906 2,363 3,559 Investment income and dividend income 51 44 45 Other income 62 236 238 Selling and administrative expenses (1,473) (1,648) (1,785) Gain (loss) from oil hedging contract 11 233 86 Gain (loss) from FX forward contracts 13 (19) (259) Gain on foreign exchange 156 92 299 Loss from impairment of assets 3 19 (1,358) Share of profit of associate and joint venture

(1) 54 420

EBIT

1,728 1,375 1,244

Finance costs (369) (339) (379) Income tax expense (232) 109 630 Profit for the period 1,127 1,145 1,495 Owners of the Company 1,174 993 1,316 Non-controlling interests (47) 153 179 Earnings per share (Baht per Share) 0.85 0.72 0.96

Unit: THB Million

Key Financial Performance - Consolidated

Bangchak Corporation Plc.

24 Remark:

Share of Profit from associates and JV Higher from better performance of Ubon Bio Ethanol, and BCPG recent acquisition in Star Energy Group Holding Pte. Ltd

Unit: THB Million

Loss from Impairment of assets Mainly from Nido’s impairment from the exploration and appraisal expenses, as a result of its withdrawal from Mid-Galoc area Income Tax revenue Tax expense was credited from 2009 and 2010 income tax return of 671 MB

Statement of Income

3Q16

(Restated)

2Q17 3Q17 Revenue 36,686 42,828 39,009 Cost of goods sold (33,780) (40,465) (35,450) Gross Profit 2,906 2,363 3,559 Investment income and dividend income 51 44 45 Other income 62 236 238 Selling and administrative expenses (1,473) (1,648) (1,785) Gain (loss) from oil hedging contract 11 233 86 Gain (loss) from FX forward contracts 13 (19) (259) Gain on foreign exchange 156 92 299 Loss from impairment of assets 3 19 (1,358) Share of profit of associate and joint venture

(1) 54 420

EBIT

1,728 1,375 1,244

Finance costs (369) (339) (379) Income tax expense (232) 109 630 Profit for the period 1,127 1,145 1,495 Owners of the Company 1,174 993 1,316 Non-controlling interests (47) 153 179 Earnings per share (Baht per Share) 0.85 0.72 0.96

Key Financial Position - Consolidated

Bangchak Corporation Plc.tment

25

43,909 47,075 3,353 3,303 32,143 37,345 6,168 4,286 8,766 8,313 7,444 7,033

31 DEC 16 30 SEP 17

Liabilities & Equity

31 Dec 16 30 Sep 17

25

Bangchak Corporation Plc

Assets:  Cash and Equivalents decreased 9,968 MB mainly from the change in working capital, cash paid for asset / acquisition, debt repayment, dividend payment

Unit: THB Million

11,170 26,722 46,462 45,614 2,562 2,174 14,560 15,534 6,022 5,772 21,006 11,539

31 DEC 16 30 SEP 17 Cash and Equivalents & Short term Investment Other Current Assets Inventory PP&E Other Non Current Assets

101,783 Assets

31 Dec 16 30 Sep 17

 PP&E decreased 848 MB mainly from

• Refinery machinery, marketing, and office equipment increased

by THB 2,194million

• Purchased other assets at 616 MB
• FX differences on translating financial statement resulting in

asset lower by 226 MB

• Depreciation for 9M/17 3,498 MB

 Inventory increased by 973 MB mainly due to petroleum products inventories,

• f which its average cost rose

 Trade Account Receivable decreased 250 MB from lower finished product sales volume & price

Account Receivable

107,355 101,783  Other Non Current Assets increased 15,552 MB mainly from

• Investment in Associates and JV increased 13,349 MB
• Investment in LAC increased by 1,099 MB, and net fair value

increase in LAC investment of 1,664 MB

• Intangible Assets decreased 1,289 MB mainly from Mid-Galoc oil

field impairment 107,355

Current Liabilities Long Term Debt Total Equity Other Non Current Liabilities

(Including current portion of L/T debt)

Account Payable Short term loan

Key Financial Position - Consolidated

Bangchak Corporation Plc.

2626

Bangchak Corporation Plc

Liabilities:  Short term loan decreased 411 MB mainly from Estimate of short term loan decreased 502 MB from BCPG deferred payment settlement in relation with solar japan acquisition  Account Payable decrease 454 MB from trade payables in Sep 17 was paid within the month, although purchase volume was higher than in Dec’16  Other Current Liabilities decreased 1,882 MB mainly from

• Accrued expenses reduced 464 MB
• Paid for construction expense payable 322 MB
• BCPG paid remaining liabilities from SunEdison acquisition

 Long-term debt increased 4,791 MB

• Debt repayment 3,545 MB
• Loan drawdown of BCPG & BBF 9,031 MB
• Decreased from effect of THB appreciation 494 MB

Equity:  Equities increased mainly from

• Retained Earnings rose 4,393 MB from 9M/17 Net Profit
• Dividend Payment 2,822 MB
• Other component of equity increased by 1,435 MB from

change of FX translation differences for foreign operations and fair value increase in available-for-sale investment 43,909 47,075 3,353 3,303 32,143 37,345 6,168 4,286 8,766 8,313 7,444 7,033

31 DEC 16 30 SEP 17

Liabilities & Equity

31 Dec 16 30 Sep 17 Unit: THB Million

11,170 26,722 46,462 45,614 2,562 2,174 14,560 15,534 6,022 5,772 21,006 11,539

31 DEC 16 30 SEP 17 Cash and Equivalents & Short term Investment Other Current Assets Inventory PP&E Other Non Current Assets

101,783 Assets

31 Dec 16 30 Sep 17 Account Receivable

107,355 101,783 107,355

Other Current Liabilities Long Term Debt Total Equity Other Non Current Liabilities

(Including current portion of L/T debt)

Account Payable Short term loan

Cash Flow - Consolidated

Bangchak Corporation Plc.

27 Beginning Cash 19,287 MB Change in Cash (9,756 MB) Ending Cash 9,319 MB FX adjustment (211) MB

9,758 13,394 8,959 3,198 500 1,989 185 535 4,340 3,222 2,480

Cash From Operation (CFO) Selling of PPE Funding

19,402

Sources of Cash Uses of Cash

29,158 Q3/17 Sources and Uses of Cash

Unit: THB Million Investment in intangible & other assets Investment in subsidiaries & JV Change in working cap ST Investment Dividend & Interest Received and others Debt Service Investment in PPE Dividend Paid

Going Forward in 4Q2017

Refinery - On-going value enhancement projects

Bangchak Corporation Plc.

29

YES-R Project 3E Project

Y2016

Y2017 Y2018 Y2019 Y2020 In operation (Aug’17)

EPC Award (Q1/18)

Completion

EPC Award (Q1/18)

Completion

FEED & ITB Completion (Q2/17) EPC Award

Completion

Co-Gen #3 (≈12 MW)

• 1st Provisional Acceptance and under

commission process (Progress: 99%)

Benefit ≈0.20 $/bbl Continuous Catalyst Regeneration Unit (CCR)

(CCR: Higher Capacity & maintenance cycle extension)

• Prepare for Bid Evaluation

Debottlenecking #1: Hydrocracker Unit (HCU) Revamping

(Higher Optimal Crude Run: Distillate)

• Prepare for Bid Evaluation

#2: Debottlenecking CDU & NPU & ISOU & KTU

(Higher Optimal Crude Run: Light & Middle Distillate)

• Front end engineering design & invitation to bid

YES-R Project:

Continuous Improvements that focused on reliability, enhanced efficiency, safety, and yield improvement

Automation & Digitalization

Project Timeline

3Q/17 Refinery actual Power usage :

• 90% self reliance
• 10% purchased from MEA

COGEN in operation - Performance Recap

Refinery – 2018 Turnaround Maintenance Plan

Bangchak Corporation Plc.

30

Bangchak Refinery TAM 2018 Plan Period: 30 April – 13 June 2018 (45 days)

Project Tie-in:

• Continuous Catalyst Regeneration Unit (CCR)
• Hydrocracker Unit (HCU)
• Crude Distillation Unit (CDU) 3

Expected Utilization Rate 85%

Retail & Non-oil Networks – Current Network Optimization

Bangchak Corporation Plc.

31

To improve customer experience and advocacy, BCP focus on network coverage, service and non oil benefit with the concept of “Greenovative Experience”

Service Station Design

• Flagship Service station
• Environmental friendly
• Custom design for each segment
• Existing service stations renovation

Competency Improvement

(Customized by Sites)

Current Network Optimization

• Loyalty program improvement
• High quality & Environmental friendly products
• Standardized & Fast service

Retail Networks – Geographical expansion

Bangchak Corporation Plc.

32

Metro & Central Cluster

• ie. BKK and Vicinity,

Ayutthaya, Nakornsawan, Samut sakorn East Cluster

• ie. Rayong,

Chonburi South Cluster

• ie. Suratthani, Phuket,

Songkha, Trang, Krabi North East Cluster

• ie. Khonkaen, Udonthani,

Nakornrachasrima North Cluster

• ie. Chiangmai,

Chiangrai, Lampang

Network expansion as a cluster

 Create brand impact  Improve management efficiency  Fulfilling Bangchak service station in main roads

BCP Bio-based Business Unit – Amalgamation completed

Bangchak Corporation Plc.

33

Current shareholding structure BBGI Timeline

31 Oct’ 2017 Q4/2017 End 2018 Amalgamation Completed Amalgamated company performance realization (2 months) BBGI IPO

BBGI – Expansion Plan (Tentative Target)

Bangchak Corporation Plc.

34

Current Business Biodiesel business Capacity 810,000 Lt./d PCM plant (PCM: Phase change material) Refined Glycerin Ethanol business Capacity 150,000 Lt./d Debottleneck (45->50 ML/Yr) Ethanol business Capacity 350,000 Lt./d

KSLGI-BoPloy Capacity Expansion (200->300 kL/D) KSLGI-Nampong Capacity Expansion (150->350 kL/D)

New Business Astaxanthin New Products Capacity Expansion

Lithium Americas – Progress Update

Bangchak Corporation Plc.

35 Cauchari-Olaroz project timeline

Complete Preliminary Feasibility Study

Jun’18

Cauchari-Olaroz Project Update

Bangchak Corporation Plc.

36

THANK YOU

ir@bangchak.co.th

• Tel. +662 335 4390, 365 8518

www.bangchak.co.th click Investor Relations

Disclaimer : The information contained herein is being furnished on a confidential basis for discussion purposes only and only for the use

• f 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.

Appendix

Oil Market Outlook

Surplus stock reduction moderates, higher U.S. oil production looming

39 Continue non-OPEC supply growth keeps call on OPEC near 32.5 MBD in 2018

Big closer in gap between total OECD stock & 5yrs-Avg. with strong demand and producer cut production

Source: Argus Media, Euroilstock, IEA, METI, OPEC and EIA – Oct’17

Better OPEC cuts compliance

Oil Production cuts [KBD]

Active U.S. rig start to decline

U.S. Oil Rig count U.S. Oil Production [Right Axis]

Source: IEA – Oct’17 Source: Baker Hughes and EIA Source: IEA – Oct’17

57.38 58.05 59.60 6.81 6.91 7.04 32.80 96.13 97.71 99.12

30 40 50 60 70 80 90 100 2016 2017 2018 OPEC Supply OPEC NGLs Non-OPEC Supply Total Demand

World oil balance (MBD)

Call on OPEC 32.48 MBD Call on OPEC 32.75 MBD

+1.6% +1.4%

(+2.7%) (+1.2%)

20 40 60 80

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 $/BBL

Iran nuclear deal reached Greece Debt Default U.S. Presidential election U.S. supply concern 40 Crude Oil Price Outlook: Tighter crude stock surplus support prices

but oil prices capped by rising of U.S. production

Rig count drop Upstream investment cut China’s stock rout No OPEC production ceiling agreement Iran’s sanction lifted Possible of OPEC and Non-OPEC coordination FED rate hike

Dubai AVG: Q1/17 = 53.0 Q2/17 = 49.7 Q3/17 = 50.4 Q4/17 (F) = 57.8 FY2016 = 41.4 $/BBL FY2017 (F) = 52.7 $/BBL FY2018 (F) = 56.5 $/BBL

Hurricane Season

OPEC and non- OPEC Deal

Fed Rate Hike Expectation

• OPEC meeting in late-November likely to extent cut

to lower excess crude inventories.

• Firm refining margins to support crude oil demand.
• Kurdistan-Iraq tension and security concerns
• Rising US-Iran tensions on compliance over nuclear

deal

• U.S. oil supply continue to grow

Trump inauguration [20 Jan]

OPEC meeting [30 Nov]

Tension in Iraq Production cut begins

Focus on Q4-17:

Extension cut meeting [May] Summer demand

• Global demand growth due to strong economics.
• Expect OPEC will extent cut to end of 2018.

Saudi Aramco IPO support.

• Surplus inventory will moderate decrease
• Non-OPEC supply growth, lead by U.S. , Canada

& Brazil

• Libya and Nigeria production increase.

Market Highlights in 2018:

18.8 14.4 11.6 14.5 14.7 14.2 16.1 14.6 18.3 14.8 14.9 14.6 9.7 10.5 10.9 11.5 11.8 11.3 13.8 12.2 13.6 10.6 12.3 12.5

• 5.2
• 8.7
• 4.3
• 2.5
• 3.2
• 1.8
• 1.4
• 2.2
• 5.0
• 5.2
• 2.1
• 2.5
• 15
• 10
• 5

5 10 15 20 25 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 2015 2016 2017 2018

ULG95 - Dubai Gas oil 0.05%S - Dubai Fuel Oil - Dubai

41

Singapore Product Cracks Spread Outlook

• High margins incentivize lower maintenance in Q4.
• Higher oil products export from China after refiners receive an

unusual fifth round of export quotas and new refinery startup.

• Seasonal downward gasoline demand in winter.
• Winter stockpiling activities should protect downside risk of gasoil

cracks

• Limited fuel oil arbitrage from West to Asia and tighter fuel oil in Asia
• n higher demand from bunkering sector support fuel oil crack.

Market Highlights in 2018:

• The incremental demand growth in

Asia will offset supply increase from the recently commissioned refinery projects.

• Continuation of relative light end

support compared to middle distillates on still strong demand.

• Supply side still driving fuel oil

tightness

Focus on Q4-17: Softer refining margins in Q4 from earlier strong in Q3 but remain supported by winter demand

$/BBL

Appendix

Financial Figures

Profit and Loss (Consolidated)

43 Unit: THB Million Q3/16 Q2/17 Q3/17 YoY QoQ Sales revenue 36,686 42,828 39,009 6%

• 9%

Cost of goods sold (33,780) (40,465) (35,450) 5%

• 12%

Gross profit 2,906 2,363 3,559 22% 51% Investment income and other income 113 280 283 150% 1% Selling and administrative expenses (1,450) (1,633) (1,770) 22% 8% Exploration and evaluation expenses (16) (16) (12)

• 24%
• 23%

Gain (loss) from crude and product oil price hedging contract 11 233 86 681%

• 63%

Gain (loss) from foreign currencies forward contract 13 (19) (259) N/A N/A Share of profit of associate and joint ventures (1) 54 420 N/A 678% Gain on bargain purchase N/A N/A Add back: Depreciation and amortization 1,229 1,250 1,277 4% 2% EBITDA 2,798 2,514 3,580 28% 42% Gain on foreign exchange 156 92 299 92% 225% Reversal of allowance for gain/(loss) from impairment of assets 3 19 (1,358) N/A N/A Finance costs (369) (339) (379) 3% 12% Income tax expense (232) 109 630

• 371%
• 477%

Non-controlling interests (47) 153 179 483% 17% Profit attribute to owners of the Company 1,174 993 1,316 12% 33% EPS (Baht/Share) 0.85 0.72 0.96

Profit and Loss (Consolidated)

44 Unit: THB Million 2014 2015 2016 YoY Sales revenue 183,016 151,140 144,705

• 4%

Cost of goods sold (178,473) (139,686) (132,809)

• 5%

Gross profit 4,543 11,454 11,896 4% Investment income and other income 1,197 543 527

• 3%

Selling and administrative expenses (4,488) (5,100) (6,195) 21% Exploration and evaluation expenses N/A Gain (loss) from crude and product oil price hedging contract 499 (407) 107 126% Gain (loss) from foreign currencies forward contract 84 (155) 39 125% Share of profit of associate and joint ventures 5 12 21 69% Gain on bargain purchase 227 N/A Add back: Depreciation and amortization 3,313 4,708 4,734 1% EBITDA 5,162 11,081 11,363 3% Gain on foreign exchange 674 178 237 33% Reversal of allowance for gain/(loss) from impairment of assets (1,157) (65) 37 157% Finance costs (1,427) (1,615) (1,484)

• 8%

Income tax expense 691 (673) (689) 2% Non-controlling interests (67) (53) (44) 18% Profit attribute to owners of the Company 696 4,151 4,773 15% EPS (Baht/Share) 0.51 3.01 3.47

EBITDA Structure - Consolidated

45

1/ EBITDA from Refinery Business of the Company, BCP Trading Pte. Ltd. and Bongkot Marine Services Co., Ltd. 2/ EBITDA from Marketing Business of The Company, Bangchak Greenet Co.,Ltd., and Bangchak Retail Co., Ltd. 3/ EBITDA from Power Plant Business of BCPG Plc. and its subsidiaries 4/ EBITDA from Bangchak Biofuel Co., Ltd., Bangchak Bioethanol (Chachoengsao) Co., Ltd., Ubon Bio Ethanol Co, Ltd., and BBP Holding Co., Ltd. 5/ EBITDA from Nido Petroleum Limited 6/ EBITDA from BCP Energy International Pte, Ltd., BCP Innovation Pte. Ltd., and others

EBITDA Structure of the Company and its subsidiaries Q3/2016 Q2/2017 Q3/2017 YoY QoQ Total Revenue 36,686 42,828 39,009 6%

• 9%

Accounting EBITDA 2,798 2,514 3,580 28% 42% EBITDA Refinery Business 1/ 1,503 916 2,198 46% 140% EBITDA Marketing Business 2/ 607 669 474

• 22%
• 29%

EBITDA Green Power Business3/ 612 789 781 28%

• 1%

EBITDA Bio-Based Product Business4/ (65) 59 159 347% 169% EBITDA Resource Business5/ 171 93 44

• 74%
• 53%

EBITDA Others 6/ (31) (12) (76)

• 145%
• 551%

Profit attributable to owners of the Company 1,174 993 1,316 12% 33% Basic earnings per share (Baht) 0.85 0.72 0.96

EBITDA Structure - Consolidated

46

1/ EBITDA from Refinery Business of the Company, BCP Trading Pte. Ltd. and Bongkot Marine Services Co., Ltd. 2/ EBITDA from Marketing Business of The Company, Bangchak Greenet Co.,Ltd., and Bangchak Retail Co., Ltd. 3/ EBITDA from Power Plant Business of BCPG Plc. and its subsidiaries 4/ EBITDA from Bangchak Biofuel Co., Ltd., Bangchak Bioethanol (Chachoengsao) Co., Ltd., Ubon Bio Ethanol Co, Ltd., and BBP Holding Co., Ltd. 5/ EBITDA from Nido Petroleum Limited 6/ EBITDA from BCP Energy International Pte, Ltd., BCP Innovation Pte. Ltd., and others

EBITDA Structure of the Company and its subsidiaries 2014 2015 2016 YoY Total Revenue 183,016 151,140 144,705

• 4%

Accounting EBITDA 5,162 11,081 11,363 3% EBITDA Refinery Business 1/ 285 5,097 5,756 13% EBITDA Marketing Business 2/ 2,263 2,497 2,527 1% EBITDA Green Power Business3/ 2,572 3,005 2,559

• 15%

EBITDA Bio-Based Product Business4/ 303 355 326

• 8%

EBITDA Resource Business5/ 2 472 323

• 32%

EBITDA Others 6/ (263) (171) (129) 25% Profit attributable to owners of the Company 696 4,151 4,773 15% Basic earnings per share (Baht) 0.51 3.01 3.47

Financial Ratio (Consolidated)

47

1/ Profit and Total equity attributable to owners of the Company Note: ROE, ROA are annualized figures.

Q3/16 Q2/17 Q3/17 2015 2016 Profitability Ratios (%) Gross Margin 7.92% 5.52% 9.12% 7.58% 8.22% EBITDA Margin 7.63% 5.87% 9.18% 7.33% 7.85% Net Profit Margin 3.07% 2.67% 3.83% 2.71% 3.27% Return on Equity (ROE) 1/ 10.10% 13.21% 13.09% 12.07% 12.73% Return on Assets (ROA) 6.22% 8.27% 7.09% 8.04% 7.51% Q3/16 Q2/17 Q3/17 Liquidity Ratios (times) Current Ratio 2.80 1.92 1.61 Quick Ratio 1.94 1.29 0.90 Financial Policy Ratios (times) Interest bearing debt to Equity (IBD to Equity) 0.91 0.80 0.94 Net Interest bearing debt to Equity (Net IBD to Equity) 0.45 0.45 0.70 Q3/16 Q2/17 Q3/17 DSCR 1.60 3.86 3.83