Bangchak Corporation Plc. Opportunity Day Q3/2018 November 14 th , - - PowerPoint PPT Presentation

Bangchak Corporation Plc.

Opportunity Day Q3/2018

November 14th, 2018

Bangchak Corporation Plc. 1

Q3/18 Performance Summary

BCP Group Performance – Key Takeaways

2,198 1,929 2,142 474 509 468 417 793 1,542 159 171 149 44 36

• 81

Q3/17 Q2/18 Q3/18

Refinery & Trading Marketing Power Plant Bio-Based Products Natural Resources

EBITDA Performance Q3/18 Performance Snapshots

Marketing

• Total sales +2% YoY mainly rose from retail market, but stayed at a same

level QoQ although Q3 is the low season

• MKM remain at a satisfactory level, due to BCP’s high margin products sales

Refinery & Trading

• Crude Run at 118.82 KBD, the record high level throughout the quarter
• Total GRM 8.05 $/BBL, higher favorable crack spreads and crude cost
• Inventory Gain 241 MB

Power Plant

• Electricity sales stable YoY but -4% QoQ from lower seasonal irradiation
• Other income from profit of selling power plants to infrastructure fund 795 MB
• SG&A reduced from lower financial advisory expense

Bio-Based Product

• Ethanol sales volume +334% YoY from amalgamation, +36% QoQ as BBE

resume operation after TAM and KGI started selling ENA grade ethanol

• Biodiesel sales volume +5% YoY but -3% QoQ following oil demand low season

4,160 MB 3,216 MB 3,366 MB

Natural Resources

• Sales revenue lower after Galoc oil field divestment completed
• Galoc divestment also resulted in profit from working capital restatement
• f approx. 42 MB

Bangchak Corporation Plc.

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EBITDA Performance - BCP Group

Bangchak Corporation Plc.

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4,137 4,009

1,000 2,000 3,000 4,000 5,000 6,000 7,000 9M/17 9M/18

Unit: THB Million

Net Profit 1/

1/ Profit attributable to owners of the Company

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

Target 100% Solar Power

2,999 Marketing 1,712

Refinery 5,349

Biofuel 624 E&P 24

9M2018 Performance Compare to Target by Business Unit Accounting EBITDA 10,518 Million Baht

Unit: THB Million

9,805 10,518

2,000 4,000 6,000 8,000 10,000 12,000 9M/17 9M/18

Unit: THB Million

EBITDA

Unit: THB/Share

EPS 3.00 2.91

4%

51% 16% 29% 6% 0.2%

BCP Group Portfolios

Bangchak Corporation Plc.

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Refinery Marketing Green Power Plant Bio-based Products

Natural Resources & New Businesses

53% 93% 96% 95% 92% 95% 92% 93% 91% 56%

99%

64 112 116 114 110 114 110 112 109 67

118.8

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18

Production Profile

Actual Crude Run Unit: KBD

(TAM)

Refinery Business – Record high crude run

Bangchak Corporation Plc.

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Product Yield

LPG Gasoline Jet Diesel Fuel Oil UCO

Maximize high value product Q3/18: Lower FO - Higher UCO

Crude Sourcing

Diversify Crude Sourcing: As a long term strategy Q3/18: still maintain strategic crude sourcing portion even though crude run was higher

Domestic Import

10% 12% 7% 3% 3% 5% 52% 53% 53% 13% 12% 14% 20% 17% 19% 3% 3% 2%

Q3/17 Q2/18 Q3/18

22% 29% 28% 78% 71% 72%

Q3/17 Q2/18 Q3/18 (TAM)

Historical record high quarterly crude run

after resume operation following TAM completion Low FO yield in Q3/18 from light crude selection

Refinery Business – Better & Stronger than ever

Bangchak Corporation Plc.

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47 57 67 77 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18

• 5

5

5 10 15 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18

Refinery EBITDA

Unit: THB Million Unit: THB Million

GRM Performance

Unit: $/BBL

Crude Price & Crack Spreads ($/BBL)

DB DTD GO/DB UNL95/DB

6.66 8.81 7.60 0.2

• 0.39
• 0.21

1.32 4.39 0.66

8.18 12.82 8.05 Q3/17 Q2/18 Q3/18

Inventory Gain / Loss Oil Hedging Market GRM

2,198 1,929 2,142 1,587 977 1,929 Q3/17 Q2/18 Q3/18 Accounting Operating

IK/DB FO/DB

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

Higher operating EBITDA YoY from favorable crack spreads (GO, IK, FO) and better QoQ benefit from narrowed DTD/DB spread Better GRM supported by improvement programs Inventory Gain 241 MB from crude price surge in the quarter especially in September BCP Trading EBITDA 37 MB (+421% YoY, +106% QoQ), increased from higher transactions after tapping to new products and markets Share of profit from Bongkot Marine Service 9 MB

Q3/18 – max utilization backed by satisfactory margins

19 15 11

• 2

Distribution channel – Retail market sales continues to grow

8

259 284 307 334 330 186 179 190 184 153 47 51 86 58 59 92 93 82 112 117 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 9M/18

8% 25% 12%

Retail Market Industrial Market Wholesales Export

Marketing Business

2,818 1,643 533 785 2,996 1,424 473 692 1000 2000 3000 4000 Retail Industrial Wholesales Export 9M17 9M18

Unit: Million Litre

(+6%)

(retail market portion

+5% from 9M2017)

54%

Marketing Performance – Retail market is the main priority

Bangchak Corporation Plc.

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Marketing EBITDA

Unit: THB Million

Retail sales volume grows YoY from customer base expansion and service station sales push, but reduced QoQ from the low season Total Marketing Margin remain at a satisfactory level, due to BCP’s high margin products sales such as High Premium Diesel, Diesel B20, E85, E20 Bangchak Retail revenue growth from branches expansion, but EBITDA still negative from high SG&A expense

Q3/18 – Sales volume still on track, but margin affected by crude oil price

Net Marketing Margin

Unit: Baht/Litre

0.94 0.93 0.83 0.33 0.35 0.40 Q3/17 Q2/18 Q3/18 0.73 0.75 0.70 474 509 468 Q3/18 Q2/18 Q3/18

Net Retail Margin Net Industrial Margin

43.1% 41.7% 15.1% 15.0% 15.1% 15.4%

15.8%

14.5% 12.5%

12.8% 12.7%

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 9M2018

444 457 460 499 536

392 436 479 510

503

416 450 464 451 448 200 400 600 800 1000 1200 1400 1600 1800 2000 200 300 400 500 2014 2015 2016 2017 8M2018

Marketing Network – Increasing Market Share & Thruput per station

Bangchak Corporation Plc.

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Market Share

(Retail Channel)

Jan-Aug’17 Jan-Aug’18 ∆

41.7% 41.7%

15.3% 15.8%

12.9% 12.7% 12.5% 12.5% 9.4% 9.3% 1.6% 1.7% 4.7% 4.4% 1.8% 1.7%

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

Thruput per station

(K.Litre / Mo) AVG Major Oil (excl. BCP) Numbers of BCP Standard Service Stations

BCP Thruput for standard stations continues to surpass major oil’s Although numbers of service stations grew only marginally

(Q3 thruput soften from low season)

Historical Market Share

(Retail Channel)

Jul-Aug’18 Market Share

16%

BCP Standard

Bangchak Service Station – Expansion Progression

Bangchak Corporation Plc.

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Standard Type

543 sites

COOP Type

611 sites

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

+48

New Service Stations

service stations as of Sep 2018

1,154

492 branches

Sep’18 Sep’18

38 stores

Bangchak New Loyalty card and Mobile Application

Bangchak Corporation Plc.

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Bangchak Greenmiles

New Loyalty Card

Can be used to collect points from every products under

Bangchak Brand

Loyalty points can be used at outlets under Bangchak brand and leading alliance brands via Bangchak Mobile Application

BCP Group Portfolios

Bangchak Corporation Plc.

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Refinery Marketing Green Power Plant Bio-based Products

Natural Resources & New Businesses

Power Plant Business – BCPG

Bangchak Corporation Plc.

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130 130 139 12 34 34 158 158 14 14 14 Q3/17 Q2/18 Q3/18 Operating Capacity (MWac)

Solar Solar Geothermal Wind

156 336

417 793 1,542 Q3/17 Q2/18 Q3/18

Green Power Plant EBITDA

Unit: THB Million

345

65.38 66.70 64.24 12.85 14.89 13.87 3Q/17 2Q/18 3Q/18 JP TH 78.24 81.58 78.12

Electricity Sales

Unit: Million kWh

Solar Electricity Sales :

• unchanged YoY: lower irradiation hours in TH but added capacity in JP
• 4% QoQ:

lower from entering rainy season Gain from 2 power plant sold to infrastructure fund in JP: 795 MB Share of profit from Geothermal power plant : 93 MB Share of profit from Wind power plant : 21 MB SG&A expense reduced 26% YoY mainly from lower financial advisory expense Higher FT (+0.05 THB YoY) would lead to a better earnings for existing Thailand projects with Adder scheme

Bio-Based Product Business – BBGI

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Bio-Based Product EBITDA

Biodiesel Performance

• YoY better from higher sales volume, and gross profit increased

from CPO price dropped faster than B100 price

• QoQ soften partially from low season in oil demand, and gross

profit reduced from consistently low level of CPO

Ethanol Performance

• YoY better after amalgamation with KSL, but gross profit from

cassava based ethanol dropped from raw material price increase

• QoQ sales volume increase as BBE resume operation after TAM,

and KGI-BP raised sales in ENA grade, but gross profit affected from rising molasses price and higher level of cassava price

Unit: THB Million

159 171 149 Q3/17 Q2/18 Q3/18

Biodiesel Production Volume

Unit: K.Litre / day

689 675 681 682 750 718 3Q/17 2Q/18 3Q/18 Production Sales

Ethanol Production Volume

Unit: K.Litre / day

129 432 462 121 391 526 3Q/17 2Q/18 3Q/18 Production Sales B7 B7 B7 KGI performance not yet included BBE TAM 19 days

Q3/18 – Better as a group

KGI-NP TAM 15 days

Natural Resource Business - Nido Petroleum

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Nido Sales Revenue & Volume was lower after the divestment of Galoc

• il field

Nido EBITDA higher due to profit from Galoc oil field share divestment (no effect in BCP consolidated financial statement) Recorded profit from the provision of working capital settlement 42 MB Total exit by 1st quarter 2019

3Q/18 – Galoc divestment completed

Nido Petroleum EBITDA

Unit: THB Million

44 59 194 Q3/17 Q2/18 Q3/18

Nido License interests in the Philippines

Sold

Q3/18 Financial Performance

Q3/2018 Highlights

Bangchak Corporation Plc.

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• NPAT 2,216 MB, EPS 1.35 THB/Share (+96% YoY)
• Paid dividend of 1,170 MB (0.85 THB/Share)
• Bond Issuance 4,000 MB with 2-7 years maturity and coupon of 2.13 – 3.42% p.a.
• Paid dividend of 320 MB (0.16 THB/Share), paid to BCP 224 MB
• Q3/17 FS restatement after PPA for geothermal power plant completed:

Effect on 3Q/17 Income Statement: BCP Consolidated: Net Income decreased 364 MB Company Only: Net Income unchanged

• Gain on selling 2 solar power plant projects into infrastructure fund

Effect on Income Statement: BCP Consolidated: Other Income increased 795 MB Net Income increased 658 MB

Q3/2018 Highlights

Bangchak Corporation Plc.

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• Realized partial gain from provision of working capital settlement on Galoc oil Field divestment

BCP Consolidated: Other Income increased 42 MB

• Established subsidiary: BCPR Co., Ltd. (in Thailand) (registered capital 1 MB)

and indirect subsidiary: 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.

Statement of Income - Consolidated

Bangchak Corporation Plc.

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Gross Profit +7 YoY and -1% QoQ

• GRM increased (+5% YoY, +17% QoQ) from higher crude run and favorable crack

spreads (YoY) and narrowed DTD/DB (QoQ)

• MKM decreased (-5% YoY, -7% QoQ) from the lag time in retail price adjustment

to sharp rise of crude oil price

• BCPG gross margin declined YoY and QoQ from the lower sales in Thailand

Remark:

Other Income 891 MB Mainly from BCPG’s gain from selling 2 power plants into Infrastructure fund of 795 MB

Statement of Income

Q3/17 Q2/18 Q3/18 Revenue 39,009 45,558 53,461 Cost of goods sold (35,450) (41,699) (49,640) Gross Profit 3,559 3,858 3,821 Investment income and dividend income 45 12 11 Other income 238 181 891 Selling and administrative expenses (1,773) (1,785) (1,782) Exploration and evaluation expense (12) (13) (8) Gain (loss) from oil hedging contract 86 (136) (95) Gain (loss) from FX forward contracts (259) 95 (28) Gain (loss) on foreign exchange 299 (39) 230 Loss from impairment of assets (1,358) (412) (14) Share of profit of associate and JV 56 23 118 EBIT 880 1,784 3,143 Finance costs (379) (374) (401) Income tax expense 630 (253) (526) Profit for the period 1,131 1,157 2,216 Owners of the Company 1,060 1,007 1,856 Non-controlling interests 70 150 359 Earnings per share (Baht per Share) 0.77 0.73 1.35

Unit: MB

Oil hedging, FX hedging, FX Gain/Loss Net gain resulted from managing oil price & FX risks Revenue +37% YoY and +17% QoQ

• Refinery: Higher total oil products sales volume (+5% YoY and +14% QoQ)
• Bio-based: Realized revenue from ethanol following business amalgamation in Q4/17
• BCPG revenue lower YoY and QoQ from declined electricity sales in Thailand

Impairment loss 14 MB from exploration and drilling inventories impairment

Statement of Income - Consolidated

Bangchak Corporation Plc.

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Remark:

Share of profit of associate and JV

• Star Energy Group Holdings Pte. Ltd

93 MB

• Petrowind Energy Inc.

21 MB

• Bongkot Marine Services

9 MB

• Ubon Bioethanol Plc.

(4.5) MB Finance Costs (+6% YoY, +7% QoQ)

• BCP 4,000 MB bond issuance
• Subsidiaries loan draw down 1,650 MB
• USD loan subject to upward trend floating LIBOR rate

Income Tax Effective Tax Rate Q3/18: 19.1% Q2/18: 17.9% Tax expense increased mainly from income tax on BCPG’s profit from assets sale into infrastructure fund 137 MB

Statement of Income

Q3/17 Q2/18 Q3/18 Revenue 39,009 45,558 53,461 Cost of goods sold (35,450) (41,699) (49,640) Gross Profit 3,559 3,858 3,821 Investment income and dividend income 45 12 11 Other income 238 181 891 Selling and administrative expenses (1,773) (1,785) (1,782) Exploration and evaluation expense (12) (13) (8) Gain (loss) from oil hedging contract 86 (136) (95) Gain (loss) from FX forward contracts (259) 95 (28) Gain (loss) on foreign exchange 299 (39) 230 Loss from impairment of assets (1,358) (412) (14) Share of profit of associate and JV 56 23 118 EBIT 880 1,784 3,143 Finance costs (379) (374) (401) Income tax expense 630 (253) (526) Profit for the period 1,131 1,157 2,216 Owners of the Company 1,060 1,007 1,856 Non-controlling interests 70 150 359 Earnings per share (Baht per Share) 0.77 0.73 1.35

Unit: MB

Statement of Income - Consolidated

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Statement of Income

9M2017 9M2018 Revenue 125,832 143,244 Cost of goods sold (115,884) (132,237) Gross Profit 9,948 11,007 Investment income and dividend income 144 39 Other income 644 1,131 Selling and administrative expenses (4,837) (5,228) Exploration and evaluation expense (37) (31) Gain (loss) from oil hedging contract 320 (304) Gain (loss) from FX forward contracts (242) 67 Gain on foreign exchange 663 363 Loss from impairment of assets (1,441) (425) Share of profit of associate and joint venture 128 233 EBIT 5,290 6,853 Finance costs (1,073) (1,140) Income tax expense 257 (1,002) Profit for the period 4,474 4,710 Owners of the Company 4,137 4,009 Non-controlling interests 338 701 Earnings per share (Baht per Share) 3.00 2.91

(Unit: MB)

9M Net Profit 9M/18 operation was superior YoY but NPAT appears to be lower than 9M/17, mainly due to 671 MB income tax returns in 2017

Financial Position - Consolidated

Bangchak Corporation Plc.

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

(Including current portion of L/T debt)

51,890 51,970 3,470 3,029 36,857 38,978 7,589 3,901 10,016 11,702 4,046 5,743 31 DEC 17 31 DEC 18

Liabilities & Equity

31 Dec 17 30 Sep 18 29,528 27,620 48,049 48,099 2,734 3,033 15,720 19,320 7,511 10,123 10,325 7,128 31 DEC 17 30 SEP 18 Cash and Equivalents & Short term Investment Other Current Assets Inventory PP&E Other Non Current Assets

115,324

Assets

31 Dec 17 30 Sep 18 Account Receivable

113,869 113,869

Account Payable Short term loan

115,324

Financial Position - Consolidated

Bangchak Corporation Plc.

24 2,734 3,033 15,720 19,320 7,511 10,123 10,325 7,128

 Cash and Equivalents & ST Investment 3,197 MB mainly from: cash paid for inventories, tax payment, dividend  Inventory 3,600 MB mainly from inventory price increase  Account Receivables 2,612 MB

• Bangchak’s own higher average selling price per litre
• BCPT’s higher transaction volume

Cash and Equivalents & Short term Investment Other Current Assets Inventory 36,291

Current Assets

31 Dec 17 30 Sep 18 Account Receivable 39,604

7,589 3,901 10,016 11,702 4,046 5,743 31 DEC 17 31 DEC 18

31 Dec 17 30 Sep 18 21,651 21,346 Other Current Liabilities Account Payable Short term loan

Current Liabilities

 Other Current Liabilities 3,688 MB mainly from

• Excise tax prepayment
• Lower Oil Fund payable from the lower oil products sales vol. compared to Dec’17

 Short Term loans 1,697 MB to maintain liquidity after higher payment for tax and inventories  Account Payable 1,686 MB mainly from higher transaction volume of BCPT

31 Dec 17 31 Sep 18 Crude

• Vol. 3.4 BBL

Price ≈ 64 $/BBL

• Vol. 3.8 BBL

Price ≈ 80 $/BBL Product

• Vol. 2.0 BBL

Price ≈ 76 $/BBL

• Vol. 2.2 BBL

Price ≈ 93 $/BBL

Financial Position - Consolidated

Bangchak Corporation Plc.

25 29,528 27,620 48,049 48,099

 PP&E

• Increased mainly from refinery, marketing and power plant assets
• PP&E sold in the amount of 2,593 MB, mainly from BCPG power plants

sold to infrastructure fund

• Depreciation for 9M/2018 of 3,290 MB

PP&E Other Non Current Assets 77,578 Non-Current Assets 31 Dec 17 30 Sep 18 75,719  Other Non Current Assets 1,908 MB mainly decrease from Change in net fair value of available- for-sale investment (LAC)

3,470 3,029 36,857 38,978 31 DEC 17 SEP 18

31 Dec 17 30 Sep 18 40,327 42,007 Long Term Debt Other Non Current Liabilities

(Including current portion of L/T debt)

 Long-term debt

• 2,121 MB
• BCP Bond issuance 4,000 MB
• BCPG & BBGI loan drawdown 1,650 MB
• Loan repayment 3,487 MB

Non-Current Liabilities

Financial Position - Consolidated

Bangchak Corporation Plc.

26 6,410 6,867 27,814 29,146 15,254 15,273 2,411 685 31 DEC 17 31 DEC 18

 Equities increased 0.2% mainly from

• Retained Earnings +1,331 MB from
• 9M2018 Net Profit of 4,009 MB
• Dividend paid 2,685 MB
• Other component of equity -1,726 MB from
• Net fair value change in available-for-sale investment (LAC) of -1,865 MB
• Gain in translation financial statement 127 MB

Equity

31 Dec 17 30 Sep 18 51,890 51,970 Other Components Non-controlling Interests Retained Earnings Paid up capital, Share premium and capital surplus

Cash Flow - Consolidated

Bangchak Corporation Plc.

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Beginning Cash 10,106 MB Change in Cash (3,260 MB) Ending Cash 6,899 MB FX adjustment 53 MB

9M2018 Sources and Uses of Cash

Unit: THB Million

9,953 8,484 7,395 4,719 3,755 6,134 2,971 1,122 934

Cash From Operation (CFO) Funding

21,104

Sources of Cash Uses of Cash

24,363

Change in Working Capital Debt Service - Repayment Investment in PPE Others Tax Paid Selling of PPE, Selling of investments and others Dividend Paid

Going Forward

Refinery – 2019 Full year normal operation & 3E project updates

Bangchak Corporation Plc.

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2019

Resume full year normal crude run

Status Expected Completion Continuous Catalyst Regeneration Unit (CCR)

(CCR: Higher Capacity & maintenance cycle extension)

• Detailed Engineering and Design Phase
• Start Construction : Piling Work

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 (EPC Award Q4/18) 2020

3E Project Updates

Possibility to maximize Gas Oil yield to reap benefit from GO/DB spread rise after 2020 IMO regulation

BCP Trading to grow further

Bangchak Corporation Plc.

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Thailand, Malaysia, Singapore, China, Indonesia, Cambodia, Qatar, Vietnam, Korea

Trading Highlights

Market Coverage in 9 Countries

Going Forward

Expand coverage to offer more product varieties Derivatives Trading

6.1 10.8

35

2017 9M2018 2019 (F)

Oil Trading Volume

Unit: MBBL

Marketing Business – Strengthen Core businesses & Expand Related businesses

Bangchak Corporation Plc.

31 53.0 72.0 60.9 76.1 77.5 79.5 NPS 2015 NPS 2016 NPS 2017

Continue to increase market share in Retail Sales

Continue to improve NPS score

2019 Network Expansion

+90

New Stations Mostly Standard size

Matching Non-Oil with Customer Lifestyles Loyalty Program for Personalized Offerings Market Leader Lubricant Non-oil (BCR) JET opportunity

2019 Target

Sales Volume: 5.7 ML

For both export market & domestic car care service

SPAR: +51 stores Inthanin: +200 stores

Jet Fuel market expansion for both domestic & export sales

Dealer 80 sites COCO 10 sites

Bio-Based products – Expansion & Listing plan still on track

Bangchak Corporation Plc.

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Current Business Future Growth

Biodiesel Ethanol High Value Bio-Based Products

Capacity Products

Ethanol

Fuel-Grade ENA-Grade 900,000 LPD Products

Biodiesel

Glycerin Capacity Biodiesel

930,000 LPD

Bioenergy Bio-consumption Personal Care Bio-Chamical

Processed Food Food Supplements

Biofuel Production Capacity: 1,830,000 LPD (1)

To Expand to 2,200,000 LPD

(1) Capacity as of June 2018

Biodiesel 1,000,000 LPD

To expand to In 2019

Refined Glycerin 85 TPD In 2020 1,200,000 LPD

To expand to Finishing in 2018

Listing Plan in progress but will also consider market condition

Investment in OKEA updates

Bangchak Corporation Plc.

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Shareholding Structure

• Share acquisition expected to be completed in Nov’2018,

performance expected to be realized from Dec’18 onwards

• BCPR will hold 49% shareholding in OKEA with transaction

amount not exceeding 939 million NOK (or approx. 3,760 MB)

100% 100%

BCP

BCPR Thailand BCPR (Singapore)

~ 49% ~ 35% 16%

Minor Shareholder

Draugen Gjoa Grevling Ivar Aasen Yme

Cash from capital increase will be used to buy these 2 assets from A/S Norske Shell 0.554% 15% 55% 44.56% 12%

Lithium Mining business updates

Bangchak Corporation Plc.

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Shareholding Structure after the transaction completed

Cauchari-Olaroz project (Argentina)

15.9% 17.0% 62.5% 37.5%

Shareholder loan 125 + 100 MUSD Shareholder loan 80 MUSD

*Expected to complete in Q4/18

LAC 2nd Largest Shareholder THACKER PASS (lithium-bearing claystone in Nevada) April 2018 resource update establishes Thacker Pass as the largest known lithium resource in the United States Cauchari-Olaroz project (Argentina)

• H2 2018 Begin filling ponds & Detailed engineering for the processing plant
• Expected COD : 2020 (1st Phase Capacity 25,000 TPA)
• Ganfeng Lithium has completed transaction to purchase SQM’s

interest in Caucharí-Olaroz

• Ganfeng Lithium (the 5th world largest mkt cap lithium company)

successfully IPO additional shares in Hong Kong exchange Market Capitalization*: 24.16 B CNY

*as of 12 Nov 2018 Source: Reuters

BIIC - CVC investment

Bangchak Corporation Plc.

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Core 60% Peripheral 30% Technology Rising 10%

Equity Investment Commercialization Technology Support

CVC O CVC Object bjectives ives CVC CVC Investm Investment ent Portfolio Portfolio

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.