Bangchak Corporation Plc. Opportunity Day Q2/2018 August 29 th , - - PowerPoint PPT Presentation

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Bangchak Corporation Plc. Opportunity Day Q2/2018 August 29 th , - - PowerPoint PPT Presentation

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Bangchak Corporation Plc. Opportunity Day Q2/2018 August 29 th , 2018 1 Bangchak Corporation Plc. BCP Group of Businesses optimized growth platform Vayupak Fund Social Security Office Public Ministry of Finance 9.98% 14.66% 13.52%

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SLIDE 1

Bangchak Corporation Plc.

Opportunity Day Q2/2018

August 29th, 2018

Bangchak Corporation Plc. 1

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SLIDE 2

BCP Group of Businesses – optimized growth platform

2

Bangchak Corporation Plc.

Paid – up Capital 1,376,923,157 Baht

9.98% 61.83% 13.52% 14.66%

Ministry of Finance Vayupak Fund Social Security Office Public

As of 14 Mar ‘18

Bio-based Products Business Natural Resources Business Refinery and Trading Business Marketing Business Green Power Plant Business

Current Core Earning Engines New Growth Engines

Own oil products distribution networks Retail sales market share at 15.8% (2nd rank), with 1,140 service stations nation-wide, equipped with supplementary non-oil businesses to improve sales volume Complex Refinery with capacity of 120 KBD with on-going value enhancement projects to increase efficiency and capacity, along with integration to our own distribution channels Electricity generation from clean and renewable sources Mix of green power plants across solar, wind and geothermal with current capacity of 336 MW National leader of bio- based products To capture biofuel demand and develop high value innovative bio-based products Petroleum E&P and Lithium Mining business To preserve the company’s longterm competitiveness BCP Market Cap : 49 bn. THB 70% holding 60% holding (currently) Market Cap : 36 bn. THB To be listed in SET : Q4/18

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SLIDE 3

BCP Group Performance Growth

Bangchak Corporation Plc.

3

7,770 9,463 5,162 11,081 11,363 13,663 6,358

  • 2,000

4,000 6,000 8,000 10,000 12,000 14,000

2012 2013 2014 2015 2016 2017 6M2018 2012 - 2017 EBITDA CAGR = 12%

4,273 4,652 696 4,151 4,773 5,778 2,153

  • 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

2012 2013 2014 2015 2016 2017 6M2018 EBITDA Performance

Unit: Million Baht

Net Profit*

Unit: Million Baht *Profit attributable to the owners of the company

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SLIDE 4

0% 50% 100% 150% 200% 0.5 1.5 2.5 3.5 4.5 5.5

EBITDA Performance - BCP Group

Bangchak Corporation Plc.

4

3,076 2,153

1,000 2,000 3,000 4,000 5,000 6,000 7,000 6M/17 6M/18

Unit: THB Million

Net Profit 1/

1/ Profit attributable to owners of the Company

Target 100% Solar Power 1,457 Marketing 1,244

Refinery 3,207

Biofuel 475 E&P 104

6M2018 Performance Compare to Target by Business Unit Accounting EBITDA 6,358 Million Baht

Unit: THB Million

6,589 6,358

1,000 2,000 3,000 4,000 5,000 6,000 7,000 6M/17 6M/18

Unit: THB Million

EBITDA

Unit: THB/Share

EPS 2.23 1.56

4%

50% 20% 23% 7% 2%

1H2018 Highlights

45 days refinery Turnaround Maintenance (TAM), led to softened performance in Q2/18 Despite TAM, Retail sales volume managed to grow 6% YoY, outpaced service station industry’s growth Power Plant continues to contribute stable income Bio-based products group performance highly grew YoY, proved the amalgamation with KSL GI to be beneficial Performance already bottomed out, 2H2018 will get better as BCP resume normal operation

bio

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SLIDE 5

Refinery Business – Maintain high production rate & Satisfactory GRM

Bangchak Corporation Plc.

5

Product Yield

LPG Gasoline Jet Diesel Fuel Oil UCO

Maximize high value product 13% 10% 2% 3% 51% 53% 12% 12% 19% 19% 3% 3% 2017 6M2018

Crude Source

Diversify Crude Sourcing 28% 31% 72% 69% 2017 6M2018

Domestic Import

TAM = Turnaround Maintenance Period

Production Profile

Actual Crude Run Unit : KBD Y2012 2013 2014 2015 2016 2017 6M2018 99

KBD

(TAM) (TAM) (TAM) 74

KBD

86

KBD

113

KBD

101

KBD

111

KBD

88

KBD

(TAM) 2018 Target 100 - 102 KBD

8.34 5.88 6.96 9.05 5.99 6.38 7.51 0.81 0.71 0.48

  • 0.33

0.08 0.25

  • 0.22
  • 0.84

1.06

  • 5.30
  • 3.07

0.45 0.60 1.55

Market GRM Oil Hedging Inventory Gain Loss

GRM Performance

Unit: $/BBL 2012 2013 2014 2015 2016 2017 6M2018

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SLIDE 6

Refinery - On-going value enhancement projects

Bangchak Corporation Plc.

6

3E Project: Efficiency, Energy and Environment Debottleneck for Crude Run Capacity 130+ KBD Cost saving energy consumption And electricity stability in refinery production processes Flexible Product Yield to capture demand Extended interval between each maintenance From 18 mths to 30-36 mths Refinery-wide improvement projects focused on Yield, Efficiency, Safety & Reliability to extract the most value from the refinery YES-R Project: Continuous Improvements

2016 2017 2018 E 2019 E 2020 E

Previous Optimal 110 KBD

130+ KBD

New Optimal

Unit: KBD

TAM

111

TAM

& High Value added products Production ramp up

Production Profile

101 Completion of

CO-GEN power plant

Completion of

CCR

Completion of

Debottlenecking Collaboration with other refinery

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SLIDE 7

Marketing Sales Volume – Retail Market is the priority

Bangchak Corporation Plc.

7

BCP retail sales continues to outpace service stations industry’s growth Marketing Margin remains at a satisfactory level

Marketing Margin

Unit: THB/Litre

0.65 0.52 0.71 0.76 0.79 0.77 0.79

2,679 2,935 3,016 3,285 3,609 3,820 2,005 1,890 2,070 1,991 2,124 2,180 2,196 963 2012 2013 2014 2015 2016 2017 6M2018 Retail Sales Industrial Sales

Unit: Million Litre

Marketing Sales Volume

4,569 5,005 5,006 5,410 5,789 6,016 2,969

13.8% 14.8% 15.1% 15.0% 15.1% 15.4%

15.8%

2012 2013 2014 2015 2016 2017 6M2018

BCP Market Share

Reached in May’18

16%

Historical Market Share

(Retail Channel)

302 348 392 432 479 510 414 416 416 445 464 451

150 250 350 450 550

2012 2013 2014 2015 2016 2017

BCP Standard AVG Major Oil

Thruput per station

(K.Litre / Mo)

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

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SLIDE 8

Marketing Business – service station & non-oil roll out plan in 2H18

Bangchak Corporation Plc.

8

  • !

"#$ " %&' %()

Stations

as of June 2018 *+&),(

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SLIDE 9

Green Power Plant – Growth in both Capacity & Trend

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Thailand

Operating : 130 MWac Developing : 18 MWac

Japan

Operating : 34 MWac Developing: 117 MWac

Philippines

Operating: 14 MWac Developing: 6 MWac

Indonesia

Operating: 158 MWac Developing: 24 MWac

geothermal solar wind

Currently has total capacity of 336 MWac and target to achieve capacity of 501 MWac by 2022

38 70 118 118 125 130 130 20 30 34 158 158 14 14

2012 2013 2014 2015 2016 2017 6M2018

Operating Capacity (MWac)

Solar Wind Solar Geothermal Wind Future Plan: Bring energy activities online for a better living of society

EV Charger Solar Rooftop Smart Meter : Communicate and Control all Devices AI for Smart Living & Energy Efficiency Blockchain & MicroGrid Energy Trading Platform

Bangchak Corporation Plc.

422 1,388 2,572 3,005 2,559 3,088 1,457

2012 2013 2014 2015 2016 2017 6M2018

EBITDA Performance

Unit: Million Baht

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SLIDE 10

BBGI – Expansion Plan and Potential Project

Bangchak Corporation Plc.

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New Value-added products R&D

Biomaterials Biochemicals PCM (phase change materials) R&D related to Yeasts 142 166 179 199 215 249 141 11 55 73 2012 2013 2014 2015 2016 2017 6M2018 Biodiesel Ethanol

Bio-Based Products Sales Volume

Unit: Million Litres BBE plant COD Q4/16 Amalgamated with KSL GI in Nov’17

28% Public

Expected Shareholding Structure after IPO

42%

≤ 30%

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SLIDE 11

Natural Resource Business – Managing E&P Portfolio

Bangchak Corporation Plc.

11

“ Bangchak to hold 45% shares ”

  • BCP to subscribe 90% of capital increase shares from OKEA (939 million NOK)
  • OKEA is a pure Norwegian development & production company established in 2015
  • Cash from capital increase will be used to buy 2 oil producing assets from A/S

Norske Shell (Draugen, Gjoa)

~ 45% ~ 45% 10% Minor Shareholder

Gjoa Ivar Aasen Ivar Aasen Yme Yme 0.554% 15% 55% 44.56% 12% Draugen Grevling

Galoc Divestment

to be completed Q3/18 Nido License interests in the Philippines Sold

  • Portfolio management
  • Mitigate risks

 Production risk (tail end of field life)  OPEX increasing  ABEX overrun risks

Rationale for the transaction

(Galoc)

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SLIDE 12

Natural Resource Business - Lithium Americas

Bangchak Corporation Plc.

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Lithium Carbonate Price

10,000 – 14,000 USD/t

(long term contract price)

20,000 – 25,000 USD/t

Spot price at China

Capacity

  • Phase 1: 25,000 tpa (COD 2020)
  • Phase 2: 25,000 tpa (COD 2022)

Project Life Time: 40 years Production Cost:

2,300 – 2,500 USD/t

Cauchari-Olaroz project (Argentina) 15.9% 17.0% 62.5% 37.5%

LAC’s shareholding in Minera Exar

*Expected to complete in Q4/18

  • Changes in shareholding in Cauchari-Olaroz is a result of the conversion of previously contributed funds
  • LAC and GFL enter Strategic Collaboration Agreement to explore future partnership opportunities
  • SQM will still provide support to ensure the continuity of ongoing work at the Project
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SLIDE 13

BIIC - Bangchak Initiative and Innovation Centre

Bangchak Corporation Plc.

13

Investment Update:

Research & Development Technology Acquisition & Networking Incubation & Startup

Investment: 1 MUSD Shareholding : 2%

Small Wind Turbines

For decentralized clean energy generation

Healthy Sugar

(Tagatose & Allulose)

Investment: 1 MUSD Shareholding : 5.3%

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SLIDE 14

Historical Dividend

Bangchak Corporation Plc.

14 44% 39% 40% 40% 192% 66% 52% 47% 54% 0.50 0.65 0.35 0.60 0.60 1.00 0.80 1.05 0.85 0.55 1.00 0.90 0.75 0.40 1.00 1.00 1.10 2.40 4.24 3.10 3.38 0.51 3.01 3.47 4.20 1.56 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Dividend Policy: ≥ 30 percent of net profit after deduction of allocation of legal reserve

Dividend Payment : Unit THB per Share 1.05

1st Half 2nd Half Dividend Payout

1.65 1.25 1.35 1.00 2.00

7.13% 8.53% 5.23% 3.94% 3.21% 5.87% 5.74% 5.99% Div Yield 14.74 19.34 23.89 34.29 31.13 34.08 31.38 35.88 Share Price*

(Baht/Share)

EPS

Y2010 Y2011 Y2012 Y2013 Y2014 Y2015 Y2016 Y2017 1H2018

*average share price of the year

1.80 2.15

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SLIDE 15
  • .$/$

0%11&''2(11'34'5)3(2,( .$/$ / 6"

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.