Bangchak Corporation Plc. Opportunity Day FY2018 March 1 st , 2019 - - PowerPoint PPT Presentation

Bangchak Corporation Plc.

Opportunity Day FY2018

March 1st, 2019

Bangchak Corporation Plc.

FY2018 Performance Summary

BCP Group Portfolios – FY2018 Key Takeaways

Bangchak Corporation Plc.

3

Refinery & Trading

• 2018 Crude Run meet the budget (102 KBD) and

if exclude TAM days, average daily Crude Run was historical high (115 KBD)

• GRM was affected by lower UNL95 spread and

lower crude run

• 1,489 MB Inventory Loss

Bio-Based Product Green Power Plant Natural Resource

• Successfully recapitalize OKEA as associated

company and acquired assets in Draugen & Gjøa on 30 Nov’18

• Performance contribution from Nido

discontinued from Q3/18 onwards, after the share divestment

• Ethanol sales volume grew from full year

performance realized from KSL

• Biodiesel sales volume increased from B7 mixing

portion throughout the year

• Biodiesel gross margin recovered from last year,

but still affected by the low price level Capacity & Regional Expansion

• Additional 14 MW COD of Solar Power Plant
• Sold 19.3 MW power plant in Japan with 793 MB

profit before tax

• Total electricity sales marginally grew 2%

Marketing

• Full year Market Share at 15.8% for 2018
• Retail market grow 5% YoY, but Industrial market

soften due mainly to limited supply during TAM

• Marketing Margin still in a healthy level, backed

by various high margin products

BCP Group Performance – 2018 Key Takeaways

EBITDA FY Comparison

Bangchak Corporation Plc.

4 Unit: THB Million

*Operating EBITDA = EBITDA exclude inventory gain/loss, FX Fwd, one-time items

5,608 2,463

2,000 4,000 6,000

2017 2018

Unit: THB Million

Net Profit 1/

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

EPS 7,596 6,268 3,928 5,330 2,301 2,097 2,177 2,194 2,846 2,695 3,569 3,468

529 754 692 779 286 286 117 43 13,421 11,963 10,201 11,532

2017 2018

Refinery Marketing Green Power Plant Bio-Based Product Natural Resource Refinery Marketing Green Power Plant Bio-Based Product Natural Resource

Operating Accounting

4.07 1.79

Operating EBITDA stay the same level as 2017

Despite 2018 refinery’s 45 days turnaround maintenance

Operating Accounting

Factors affecting 2018 Profit

• Inventory Loss

1,594 MB (include LCM)

• Oil Hedging Loss

442 MB

• Impairment Loss

441 MB

BCP Group Portfolios

Bangchak Corporation Plc.

5

Refinery Marketing Green Power Plant Bio-based Products

Natural Resources & New Businesses

109 67

119

114 111 102 Q1/18 Q2/18 Q3/18 Q4/18 2017 2018

Production Profile

Actual Crude Run Unit: KBD

(TAM)

Refinery Business – Strong operation despite TAM

Bangchak Corporation Plc.

6 (TAM) 31% 29% 28% 24% 28% 23% 69% 71% 72% 76% 72% 77%

Q1/18 Q2/18 Q3/18 Q4/18 . 2017 2018 9% 12%

7% 12% 13% 10% 3% 3% 5% 3% 2% 3% 53% 53% 53% 53% 51% 53% 12% 12% 14% 11% 12% 12% 21% 17% 19% 18% 19% 19%

3% 3% 2% 3% 3% 3% Q1/18 Q2/18 Q3/18 Q4/18 . 2017 2018 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

2018 - Record high monthly crude run 123 KBD in March’18

• 85% Full Year Utilization rate, despite 45 days TAM in Q2

crude run maximization tested and proven in preparation for capacity expansion project

Operation Excellence

115* 119*

*Normalized crude run excluding TAM days *Normalized crude run excluding TAM days

• 95% Utilization rate on

nameplate capacity

• 105% Utilization rate on full

complex refinery capacity

6.71 8.81 7.59 5.94 6.38 7.10

• 0.12
• 0.39
• 0.21
• 0.40

0.25

• 0.27
• 0.22

4.39 0.66

• 7.25

0.60

• 1.23

Q1/18 Q2/18 Q3/18 Q4/18 2017 2018 6.37 12.82 8.05 (1.72) 7.23 5.61

Refinery Business – Operation still strong, affected by oil price volatility

7

44 54 64 74 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

• 8
• 3

2 7 12 17 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Refinery EBITDA

Unit: THB Million Unit: THB Million

GRM Performance

Unit: $/BBL

Crude Price & Crack Spreads ($/BBL)

DB DTD GO/DB UNL95/DB Inventory G/L Oil Hedging Market GRM

1,279 1,929 2,140

• 1,419

7,596 3,928 1,348 977 1,927 1,077 6,268 5,330 Q1/18 Q2/18 Q3/18 Q4/18 2017 2018 Accounting Operating

IK/DB FO/DB

* Operating EBITDA : exclude Inventory gain/loss, One-time items, Gain/loss from FX forward contracts

EBITDA soften mainly from:

• Weaker GRM from a drop in UNL95 spread and higher crude cost
• Lower crude run during 45 days TAM in Q2/18
• 1,489 MB Inventory Loss in 2018, compared to 834 MB

Inventory Gain in 2017 BCP Trading EBITDA 76 MB increased from higher transactions after tapping to new products and markets Share of profit from Bongkot Marine Service 39 MB

2018 – Strong operation, with cushion from supporting businesses

Distribution channel – Retail market sales continues to grow as our main priority

8

259 284 307 334 342 186 179 190 184 167 47 51 86 58 50 92 93 82 112 111 50 100 150 200 250 300 350

Unit: Million Litre / Month (monthly AVG in the quarter)

Total Sales Volume Retail Market Industrial Market Wholesales Exports

(FO & UCO)

Total Sales Volume

Unit: % Portion of total sales volume in 2018

8% 25% 14%

Retail Market Industrial Market Wholesales Export

Marketing Business

3,820 2,196 706 1,121 4,020 1,925 622 1,026 1,000 2,000 3,000 4,000 5,000 Retail Industrial Wholesales Export 2017 2018

Unit: Million Litre

(+5%)

(retail market portion

+4% from 2017)

53%

Marketing Performance – Retail market is the main priority

Bangchak Corporation Plc.

9

Marketing EBITDA

Unit: THB Million

Retail sales volume grows 5% YoY from customer base expansion and service station sales push, but Industrial sales volume reduced 12% YoY from the intensified competition and limited stock during TAM Net Marketing Margin remain at the same level as in 2017, although there was a diesel price cap during the middle of the year, but crude oil price dropped during Q4/18 helped increasing margin BCR revenue growth from branches expansion, but EBITDA still negative from high SG&A expense

2018 – Satisfied Margin, retail market prioritized

Net Marketing Margin

Unit: Baht/Litre

1.03 0.93 0.83 1.05 0.97 0.96 0.44 0.35 0.40 0.46 0.43 0.41 Q1/18 Q2/18 Q3/18 Q4/18 2017 2018 0.83 0.75 0.70 0.85 0.77 0.78 735 509 468 465 2,359 2,254

• 58
• 77

Q1/18 Q2/18 Q3/18 Q4/18 2017 2018 Oil Business Non-oil Businesses

Net Retail Margin Net Industrial Margin (include elimination)

43.1% 41.1% 15.1% 15.0% 15.1% 15.4%

15.8%

14.5% 12.7%

12.8% 12.6%

10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 2014 2015 2016 2017 2018

444 457 460 499 527

392 436 479 510

496

416 450 464 451 446 200 400 600 800 1000 1200 1400 1600 1800 2000 200 300 400 500 2014 2015 2016 2017 2018

Marketing Network – Increasing Market Share & Thruput per station

Bangchak Corporation Plc.

10

Market Share

(Retail Channel)

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

Thruput per station

(K.Litre / Mo) AVG Major Oil (excl. BCP) AVG Number

• f standard

stations

BCP Thruput for standard stations continues to surpass major oil’s Historical Market Share

(Retail Channel)

BCP Standard

Jan-Dec’17 Jan-Dec’18 change

41.5% 41.1%

15.4% 15.8%

12.4% 12.7% 13.0% 12.6% 9.5% 9.4% 4.6% 4.3% 1.8% 1.7% 1.6% 1.7% 0.1% 0.6%

Bangchak Service Station – Expansion Progression in 2018

Bangchak Corporation Plc.

11

Standard Type

555 sites

COOP Type

620 sites

*COOP Type is small sized service station owned by farmers cooperatives (≈75% of Retail Sales Volume) (≈25% of Retail Sales Volume)

+74

New Service Stations

service stations as of Dec 2018

1,175

523 branches

Dec’18 Dec’18

45 stores

+149 stores +13 stores

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

Bangchak Corporation Plc.

12

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 6.38 7.10 3.31 2.68 3.47 3.53 3.53 3.60 3.84 2012 2013 2014 2015 2016 2017 2018 Net MKM Market GRM Unit: $/BBL

Normalize Integrated Margin

$11.66 $ 8.56 $ 10.43 $ 12.58 $ 9.52 $ 9.98 $ 10.94

BCP Group Portfolios

Bangchak Corporation Plc.

13

Refinery Marketing Green Power Plant Bio-based Products

Natural Resources & New Businesses

Power Plant Business – BCPG

Bangchak Corporation Plc.

14

130 130 130 139 139 30 30 34 34 15 158 158 158 158 158 14 14 14 14 14 Dec'17 Mar'18 Jun'18 Sep'18 Dec'18 Operating Capacity (MWac)

Solar Solar Geothermal Wind

664 793 1,542 570 2,846 3,569 Q1/18 Q2/18 Q3/18 Q4/18 2017 2018

Green Power Plant EBITDA

Unit: THB Million

332 332 336 345 326

66 67 64 73 265 270 9 15 14 4 41 42 1Q/18 2Q/18 3Q/18 4Q/18 2017 2018 JP TH 75.2 81.6 78.1 76.9 306.4 311.8

Electricity Sales

Unit: Million kWh

Solar Electricity Sales +2% YoY:

• Increase from COD of War Veteran Organization Solar project (9 MW)

and Gotemba project (4 MW)

• Sold Nikaho & Nagi project in Sep’18 (total 19 MW)

Gain from 2 power plant sold to an infrastructure fund in JP: 793 MB (before tax) Share of profit from Geothermal power plant : 164 MB Share of profit from Wind power plant : 39 MB SG&A expense reduced 17% YoY mainly from lower financial advisory expense

35 35 46 32 55 149 73 68 66 74 249 281 1Q/18 2Q/18 3Q/18 4Q/18 2017 2018 Ethanol B100

Bio-Based Product Business – BBGI

Bangchak Corporation Plc.

15

Bio-Based Product EBITDA

Biodiesel Performance

• Sales volume growth 13% from full year B7 implementation
• Gross margin better than 2017, but still pressured by price

situation: 2018 Inventory loss 83 MB vs 224 MB loss in 2017, as CPO & B100 price situation stabilize in 1H18

Ethanol Performance

• Sales volume growth from full year performance realized

from KSL-GI

• Gross margin of cassava based ethanol decreased, while

margin of molasses based ethanol increased

Unit: THB Million

304 171 151 66 529 692 300 185 173 121 754 779 Q1/18 Q2/18 Q3/18 Q4/18 2017 2018 Accounting Operating

Biofuel Sales Volume

Unit: million litres B5-B7 B7 KGI performance included 2 mths

2018 – Steady & Strong, despite B100 price drop

20 22 24 26 28 30 32 34 36

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

Ethanol B100

Biofuel Price Movement

Unit: Baht / litres Source: EPPO Full year KGI performance realized

* Operating EBITDA : exclude Inventory gain/loss, One-time items, Gain/loss from FX forward contracts

Natural Resource Business – Petroleum Exploration & Production

Bangchak Corporation Plc.

16

OKEA AS

• performance realized from 1 Dec’18 onwards, BCP

currently hold 49.33% of OKEA shares Nido Petroleum

• Operating assets (Galoc) sold in July 2018
• Short list buyers for non-operating / developing assets

2018 – OKEA acquisition & Galoc divestment completed

Petroleum E&P EBITDA

Unit: THB Million

68 36

• 81

94 286 117 Q1/18 Q2/18 Q3/18 Q4/18 2017 2018

49% 35% 16% Minor Shareholder

Gjoa Ivar Aasen Yme 0.554% 15% 55% 44.56%

12%

Draugen Grevling

Producing Producing Developing Developing Producing

Successfully acquired interests in in 30 Nov’18

FY2018 Financial Performance

FY2018 Highlights

Bangchak Corporation Plc.

18

• Bangchak Refinery TAM 2018 Completed as planned. (period between 30th April – 13th June: 45 Days)
• Bond Issuance 4,000 MB with 2-7 years maturity and coupon of 2.13 – 3.42% p.a. in Aug 2018
• Bond Issuance 7,000 MB with 10 years maturity and coupon of 4.04% p.a. in Dec 2018
• Established subsidiaries: BCPR Co., Ltd. (in Thailand) and BCPR Pte. Ltd. (in Singapore) to subscribe

90% of the increased capital of OKEA, with total investment approx. 3,760 MB, to acquire interests in Draugen Field and Gjøa Field in Norway

• Established new subsidiaries in Thailand to invest in new Start-ups, a total of 4 new companies
• 1. BCV Bio-based Co., Ltd.
• 3. BCV Innovation Co., Ltd.
• 2. BCV Energy Co., Ltd.
• 4. BCV Partnership Co., Ltd.
• Divestment of Galoc oil Field to Tamarind Galoc Pte. Ltd., valued at USD 20 million (approximately 660 MB)

BCP Consolidated: Nido Assets Impairment 412 MB Company Only: BCPE Investment Impairment 271MB

FY2018 Highlights

Bangchak Corporation Plc.

19

• The Acquisition of ordinary share in Lomligor Co., Ltd.

Wind Power Plant Project with a capacity 8.97 MW (Total investment approx. 825 MB)

• COD of 2 solar power plant project, a co-project with the War Veterans Organization (WVO)

Total contract capacity 8.94 MW (Saraburi province 5.00 MW and Kanchanaburi province 3.94 MW)

• BCPG sold 2 solar power plant projects in japan (Nikaho, Nagi) into an infrastructure fund

Income from the sales of assets 3,046 MB Profit from the sales of assets before tax 793 MB

• Finalization of the valuation of net assets of BCPG’s investment in Star Energy Group Holdings Pte. Ltd.

which resulted in restatement of 2017 consolidated financial statement: Asset : Investment in associated companies 242 MB Equity : Retained Earnings 170 MB Non-controlling interest 72 MB

• BCPR Pte. Ltd., completely subscribed for newly issued shares of OKEA AS at the total investment amount
• f NOK 939 million or approximately THB 3,618 million. The shares allotted to the company is equal to 49.33% of

total registered shares in OKEA.

Statement of Income - Consolidated

Bangchak Corporation Plc.

20

Remark: Statement of Income

FY2017 FY2018

(Restated)

Revenue 172,138 192,025 Cost of goods sold (158,596) (180,594) Gross Profit 13,543 11,431 Investment income and dividend income 156 55 Other income 1,085 1,260 Selling and administrative expenses (7,212) (7,421) Gain (loss) from oil hedging contract 366 (442) Gain (loss) from FX forward contracts (225) 162 Gain (loss) on foreign exchange 889 415 Loss from impairment of assets (1,518) (441) Share of profit of associate and JV 573 254 EBIT 7,656 5,273 Finance costs (1,452) (1,545) Income tax expense (41) (493) Profit for the period 6,163 3,235 Owners of the Company 5,608 2,463 Non-controlling interests 555 772 Earnings per share (Baht per Share) 4.07 1.79

(Unit: MB)

Oil hedging, FX hedging, FX Gain/Loss Net gain resulted from managing oil price & FX risks Revenue +12% YoY

• Refinery & Marketing : Higher average selling price per unit of finished product
• BCPT: Higher oil trading sales volume and selling price per unit
• Bio-based: Realized full year revenue from KSL Green Innovation Co.,Ltd. following

business amalgamation in Q4/17 Impairment loss 441 MB Mainly from exploration and drilling inventories impairment of Nido Petroleum 412 MB Other Income 1,260 MB

• BCPG: Gain from selling 2 power plants into Infrastructure fund of 793 MB and

insurance compensation for the damages from typhoons in Japan of 104 MB

• E&P: Realized profit from the provision of working capital settlement following the

share disposal in Nido Production (Galoc) Pty. Ltd. of 78 MB Gross Profit -16% YoY

• Inventory Loss 1,594 MB (including LCM 696 MB) in 2018, meanwhile inventory gain

652 MB in 2017

Statement of Income - Consolidated

Bangchak Corporation Plc.

21

Remark:

Share of profit of associate and JV 254 MB

• Star Energy Group Holdings Pte. Ltd

164 MB

• Petrowind Energy Inc.

39 MB

• Bongkot Marine Services

39 MB

• Ubon Bioethanol Plc.

14 MB

• OKEA AS
• 3 MB

*In 2017, recorded gain on purchase from Petrowind Energy Inc. 362 MB Finance Costs (+6% YoY)

• Subsidiaries loan draw down 1,629 MB

Unit: MB (Unit: MB)

FY2018 Net Profit The company groups’ 2018 performance declined significantly compared to 2017, as the Refinery business was affected by the year round global oil price fluctuation, especially in the last quarter which oil price plunged drastically.

(Unit: MB) (Unit: MB) (Unit: MB)

Income Tax 493 MB

• Income tax on BCPG’s profit from assets sale into infrastructure fund 136 MB
• In 2017 the company realized tax refund in the amount of 897 MB

Statement of Income

FY2017 FY2018

(Restated)

Revenue 172,138 192,025 Cost of goods sold (158,596) (180,594) Gross Profit 13,543 11,431 Investment income and dividend income 156 55 Other income 1,085 1,260 Selling and administrative expenses (7,212) (7,421) Gain (loss) from oil hedging contract 366 (442) Gain (loss) from FX forward contracts (225) 162 Gain (loss) on foreign exchange 889 415 Loss from impairment of assets (1,518) (441) Share of profit of associate and JV 573 254 EBIT 7,656 5,273 Finance costs (1,452) (1,545) Income tax expense (41) (493) Profit for the period 6,163 3,235 Owners of the Company 5,608 2,463 Non-controlling interests 555 772 Earnings per share (Baht per Share) 4.07 1.79

(Unit: MB)

Financial Position - Consolidated

Bangchak Corporation Plc.

22 Unit: THB Million Current Liabilities Long Term Debt Total Equity Other Non Current Liabilities

(Including current portion of L/T debt)

51,890 49,538 3,470 3,083 36,857 45,460 7,589 7,603 10,016 6,680 4,046 5,004 31 DEC 17 31 DEC 18

Liabilities & Equity

31 Dec 17 31 Dec 18 29,528 30,896 48,049 48,877 2,734 3,680 15,720 15,135 7,511 6,969 10,325 11,813 31 DEC 17 31 DEC 18 Cash and Equivalents & Short term Investment Other Current Assets Inventory PP&E Other Non Current Assets

117,369

Assets

31 Dec 17 31 Dec 18 Account Receivable

113,869 113,869

Account Payable Short term loan

117,396

Financial Position - Consolidated

Bangchak Corporation Plc.

23 2,734 3,680 15,720 15,135 7,511 6,969 10,325 11,813

 Cash and Equivalents & ST Investment 1,445 MB mainly from: bond issuance, net profit  Other Current Asset 946 MB mainly from oil fund subsidy  Inventory 585 MB mainly from inventory volume decrease  Account Receivables 542 MB from lower oil products sales volume and average selling price per litre in Dec’18 compared to Dec’17 Cash and Equivalents & Short term Investment Other Current Assets Inventory 36,291

Current Assets

31 Dec 17 31 Dec 18 Account Receivable 37,596

7,589 7,603 10,016 6,680 4,046 5,004 31 DEC 17 31 DEC 18

31 Dec 17 31 Dec 18 21,651 19,288 Other Current Liabilities Account Payable Short term loan

Current Liabilities

 Account Payable 3,336 MB  Short Term loans 958 MB mainly from BBGI 819 MB, BCPG 161 MB

31 Dec 17 31 Dec 18 Crude

• Vol. 3.5 MBBL

Price ≈ 64 $/BBL

• Vol. 3.2 MBBL

Price ≈ 70 $/BBL Product

• Vol. 312 ML

Price ≈ 16 Baht/L

• Vol. 281 ML

Price ≈ 19 Baht/L

Financial Position - Consolidated

Bangchak Corporation Plc.

24 29,528 30,896 48,049 48,877

 PP&E 828 MB

• Increased mainly from refinery, marketing and power plant assets

8,270 MB

• PP&E sold in the amount of 2,605 MB, mainly from BCPG power plants

sold to infrastructure fund

• Depreciation for FY2018 of 4,455 MB

PP&E Other Non Current Assets 77,578 Non-Current Assets 31 Dec 17 31 Dec 18 79,773

3,470 3,083 36,857 45,460 31 DEC 17 SEP 18

31 Dec 17 31 Dec 18 40,327 48,543 Long Term Debt Other Non Current Liabilities

(Including current portion of L/T debt)

 Long-term debt 8,603 MB

• BCP Bond issuance 11,000 MB
• BCPG & BBGI loan drawdown 1,629 MB
• Loan repayment 4,231 MB

Non-Current Liabilities  Other Non Current Assets 1,367 MB

• Increased mainly from the investment in OKEA AS in the amount of

112.41 M.USD (approximately 3,618 MB)

• Decrease from Change in net fair value of available-for-sale investment

(LAC) 2,590 MB

Financial Position - Consolidated

Bangchak Corporation Plc.

25 6,410 6,823 27,814 27,607 15,254 15,273 2,411 31 DEC 17 31 DEC 18

 Equities decreased 2,352 MB (-5% YoY) mainly from

• Retained Earnings

207 MB from

• FY2018 Net Profit of 2,463 MB
• Dividend paid 2,685 MB
• Other component of equity

2,576 MB mainly from

• Net fair value change in available-for-sale investment (LAC) of -2,590 MB

Equity

31 Dec 17 31 Dec 18 51,890 49,538 Other Components Non-controlling Interests Retained Earnings Paid up capital, Share premium and capital surplus

• 165

Cash Flow - Consolidated

Bangchak Corporation Plc.

26

Beginning Cash 10,106 MB Change in Cash 1,575 MB Ending Cash 11,551 MB FX adjustment (131) MB

FY2018 Sources and Uses of Cash

Unit: THB Million

10,440 3,360 13,664 5,849 3,878 7,705 3,822 3,091 1,451 1,130

Cash From Operation (CFO) Funding

27,983

Sources of Cash Uses of Cash

26,407

Change in Working Capital Debt Service - Repayment Investment in PPE Investment in subsidiaries, associated companies Tax Paid Selling of PPE, Selling of investments and others Dividend Paid Investment in intangible assets and others

Going Forward

10,201

2018 2019

2019 Performance Target

Bangchak Corporation Plc.

28

EBITDA +30%

Marketing

• Retail sales volume +9% & Maintain 2nd rank market share
• Estimated Net Marketing Margin at 75-85 st./litre
• Strengthen & diversify Non-oil Business

Refinery & Trading

• Crude run at 115 KBD and flexible crude mixed
• GRM to be closely managed regarding oil price & crack spread situation
• BCPT to increase trading volume to 35 MBBL

Power Plant

• Additional Capacity in pipeline
• Open for profitable deals in selling power plants to infrastructure fund
• Investment portfolio selection strategy

Bio-Based Product

• Ethanol Capacity increase +30%
• Raw material & Inventory management to adapt with price situation

Natural Resources

• Realize full year share of profit from OKEA (capacity net to BCP 10 KBD)

with lower cash cost at ≈ 20 $/BBL

Accounting EBITDA

(unit : THB million)

Refinery – 2019 Business Highlight

Bangchak Corporation Plc.

29

Trading Business

6.1 15.3

35

2017 2018 2019 (F)

Oil Trading Volume

Unit: MBBL

Expand coverage to offer more product varieties Derivatives Trading

2019 crude run target at 115 KBD

Refinery Business

Operation Excellence

• 19% yield in UNL alleviate impact

from collapse in its crack spread

• 2H/19 GRM to pick up due to IMO
• Max middle distillate to manage GRM

15% 66% 19% BCP Refinery Product Yield Comparison Gasoline Middle Distillates Others

Optimization for oil price & margin situation

50 55 60 65 70 75 80 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 DB DTD WTI

Adapt & optimize crude sourcing to reap most benefit according to oil price situation

Crude oil price

($/BBL)

Refinery – Refinery upgrading project

Bangchak Corporation Plc.

30

Status Expected Completion

Continuous Catalyst Regeneration Unit (CCR)

(CCR: Higher Capacity & maintenance cycle extension)

• Detailed Engineering and Design Phase
• Start Construction :

Civil and Steel Structure Works 2020

Debottlenecking #1: Hydrocracker Unit (HCU) Revamping

(Higher Optimal Crude Run: Distillate)

• Detailed Engineering and Design Phase

2020

#2: Debottlenecking CDU & NPU & ISOU & KTU

(Higher Optimal Crude Run: Light & Middle Distillate)

• Under Bidding Process /
• Value proposition revisit

2020

3E Project Updates

Steel Structure Work on Main Piperack (PR-3302) Rebar formwork and pouring concrete of pedestal and foundation

Construction Progress

Continued as planned and expected to be completed in 2020

Refinery – IMO 2020 Preparations

Bangchak Corporation Plc.

31

Bangchak Refinery with Full Flexibility

Bangchak Refinery with full flexibility to take crudes of different qualities from several supply regions

Crude Selection

 Light Sweet Crude Processing (Low Fuel Oil Yield)

Refinery and Facilities (2019)

 Catalyst Replacement in Kerosene Treating Unit  Maintenance for Sulfur Recovery Unit and Sulfur Tank

Blending current Fuel Oil to minimize investment to comply with IMO

17% 18% 15% 13% 13% 9.6% 2013 2014 2015 2016 2017 2018

Fuel Oil Production Yield

Marketing Business – 2019 Highlight

Bangchak Corporation Plc.

32

Continue to increase market share in Retail Sales 2019 Network Expansion

+70

New Stations Mostly Standard size

Lubricant Non-oil (BCR) JET opportunity

Supporting business 2019 Target

Sales Volume: 5.7 ML/Mo

For both export market & domestic car care service

SPAR: +20 stores Inthanin: +200 stores

Jet Fuel market expansion for both domestic & export sales

160 335

2018 2019F

Retail Sales Industrial Sales

Unit: Million Litres / Month

Marketing Sales Volume Target

484

+9%

Retail Sales Vol.

• Marketing Margin to be

maintained at reasonable level

• Sales expansion in Direct Market
• High Margin product push

+65 Standard +5 COOP

Bio-Based products – One of the largest bio-based product player in Thailand

Bangchak Corporation Plc.

33

• 3. Enhancement Program HVA 10% of Production

930,000 L/day (810,000 kg/day)

1,000,000 L/Day (330 ML/Yr)

(860,000 kg/day)

1.R&D: Cooperation with well-known technical provider

• 2. Set up Pilot Plant / Commercial Plant

Ethanol

1

• 2. M&A Ethanol plant
• 2. New Refined Glycerin plant

1.Enhance Existing capacity Bio-complex

Biodiesel

2

Bio-based Products

3

Food Supplement , Animal feed and Personal care

4

28,000 Ton/Yr

Sales Volume Target ML/Yr

• Ethanol Sugar based

500,000 L/Day

1,000,000 L/Day (330 ML/Yr)

1.Enhance Existing capacity

350,000 L/Day 650,000 L/Day (215 ML/yr) 150,000 L/Day 150,000 L/Day (50 ML/yr)

• Ethanol Cassava based

B100

Sales Volume Target ML/Yr

High Value Bio-Based Products Investment ≈6,000 MB

1.JV Company

• 2. Set up Pilot Plant / Commercial Plant

Expand Biofuel Capacity to 2.0 ML/Day

Natural Resources Business – Production profile Reserves (net to OKEA)

10 20 30 40 50 60 70 Draugen Gjoa Ivar Aasen YME Grevling Total

mmboe (as of 31 Dec 2018) 2P 2P 2P 2P 2C

Bangchak Corporation Plc.

26

Production Profile1

2018 2019 2020 2021 2022 2023

2019 CAPEX Plan

Bangchak Corporation Plc.

35

Refinery 52% Marketing 11% BCPG 22% Bio-based Products 14% Others 1%

CAPEX Plan 14,000 MB

Unit: Million Baht CAPEX Plan

Refinery  Maintenance  Improvement Project 7,200 2,500 4,700 Marketing 1,600 BCPG - Existing Projects 3,100 Bio-Based Products 1,900 Strategic investment & Other 200

Total 14,000 “Belt tightening” budget acknowledged

* Excluded M&A and new businesses

THANK YOU

ir@bangchak.co.th

• Tel. +662 335 8663, 4390, 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 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.