Bangchak Corporation Plc. Analyst Meeting Q 3 /19 Table of Content - PowerPoint PPT Presentation

Bangchak Corporation Plc. Analyst Meeting Q 3 /19

Table of Content 01 02 04 03 Q3/19 Q3/19 Business Appendices Performance Financial Updates Update Performance

BCP Group Performance – Q3/19 Key Takeaways Refinery & Trading EBITDA Performance • Crude run at exceptionally high level 110.8 KBD, despite planned shutdown Unit: THB Million • Operating GRM stands tall at 7.68 $/BBL Operating EBITDA significantly • Inventory loss of 1,063 MB (effected from FX movement ~300 MB) impacted recovered, but effected by stock loss 4,160 3,959 bottom line 149 3,331 Marketing 1,542 • Sales volume +5% YoY mainly from retail sales expansion, retail sales +9% YoY 2,189 2,260 2,141 • Retail sales market share continues to grow and peak at 16.5% in Sep’19 468 145 296 136 • B20 still a key growth driver 710 721 Accounting Operating 2,142 630 680 Power Plant 650 631 • Performance soften from both TH and JP projects from seasonal factor, and one (81) (101) off item make EBITDA in Q3/18 appear to be higher than usual Q3/18 Q2/19 Q3/19 • Making entrance to hydro power plant in Sep’19 Refinery & Trading Marketing Power Plant Bio-Based Products Natural Resources Bio-Based Product • B100 performance starts to turnaround Net Profit attributable to owners of the parent • Ethanol sales volume grew YoY from capacity added, and grew QoQ as plants resumed Unit: THB Million normal operation after maintenances in the previous quarter • B100 and Ethanol margin improved, but crude glycerin margin is still a challenge Natural Resources 1,856 Realize share of loss from OKEA at 85 MB mainly due to weakening NOK, 528 370 1 cargo lifting (2 cargoes last quarter) and gas pipeline maintenance Q3/18 Q2/19 Q3/19 * Operating EBITDA: exclude Inventory gain/loss, One-time items, Gain/loss from FX forward contracts 3 Bangchak Corporation Plc.

EBITDA Performance – BCP Group 9M/19 Performance Contribution from Each Business Unit Unit: THB Million 200% Power Plant Marketing 150% 2,168 1,920 Refinery 1,799 Target Biofuel 100% 100% 626 34% 31% 29% 10% 50% E&P 21 0% Accounting EBITDA 6,289 Million Baht 0.5 1.5 2.5 3.5 4.5 5.5 EPS EBITDA 2.91 0.81 Unit: THB/Share Unit: THB Million 10,518 6,289 Net Profit 1/ 4,009 Unit: THB Million 1,112 9M/18 9M/19 9M/18 9M/19 4 1/ Profit attributable to owners of the parent Bangchak Corporation Plc.

Refinery Business – Maintain high production rate & smooth operation Production Profile 3Q/19 Refinery Group Product Yield Crude Run Utilization Actual Crude Run Acc. EBITDA 631 MB (-3% QoQ, -71% YoY) Unit: KBD Operating EBITDA 1,799 MB 99% 94% 92% 93% 82% 3% 2% 140 LPG Crude Run at exceptionally high level at 110.8 KBD, despite 130 90% 18% UNL the planned 30 days Hydrocracking Unit maintenance, and 120 19% 70% 110 118.8 average production rate has reached highest record of Jet 100 112.7 110.8 111.2 14% 13% 50% 90 98.4 123.5 KBD in Sep’19 80 30% 70 60 10% 50% 53% GO Operating GRM was strong mainly due to and high selling price 50 40 -10% of BCP’s LSFO, and some corrections in crack spread 30 4% 4% 20 -30% UCO 10 12% 9% FO 1,163 MB Inventory Loss from the sharp crude price fall in 0 -50% Q3/18 Q2/19 Q3/19 9M/18 9M/19 9M/18 9M/19 Aug- Sep’19 (Q3/18 Inv. Gain 241 MB, Q2/19 Inv. Loss 107 MB) TAM * Operating EBITDA: exclude Inventory gain/loss, One-time items, Gain/loss from FX forward contracts GRM Performance Unit: $/BBL AVG Crack spread movement ($/BBL) AVG Crude oil price movement ($/BBL) Operating GRM Hedging Inventory Gain/Loss 20 IK/DB 80 8.53 8.05 GO/DB 4.00 DTD 15 1.18 0.66 0.02 4.01 4.53 10 70 DB UNL95/DB 7.59 7.68 7.57 5 5.35 4.95 0 60 (0.09) (0.21) (0.22) (0.33) -5 (1.34) (3.70) FO/DB 50 -10 Q3/18 Q2/19 Q3/19 9M/18 9M/19 5 Bangchak Corporation Plc.

Distribution Channel – Retail market sales continues to grow as our main priority Total Sales Volume 3Q/19 Marketing Group – Acc. EBITDA 680 MB (+8% QoQ, +45% YoY) Unit: ML/Mo 359 Customer base expansion, and B20 diesel sales which doubles from the 342 334 350 previous quarter, significantly pushed retail sales volume 307 Retail 284 300 Industrial sales volume slightly soften from the low season combined with the intensified competition 250 Industrial Net Marketing Margin 190 184 179 200 167 149 • Declined QoQ from the oil product price surged while retail price 150 adjustment was slower Exports (FO & UCO) 112 111 108 86 93 100 • Increased YoY as retail price could better adjusted to the cost, while 58 51 50 50 there was diesel price ceiling in Q3/18 82 50 Wholesales Net Marketing Margin Unit: Baht/Litre 0 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 0.83 0.77 0.77 0.76 0.70 Total Sales Volume Q3/18 Q2/19 Q3/19 9M/18 9M/19 (% Portion of total sales volume in 3Q/19) Non-oil business Bangchak Retail Revenue grew 16% QoQ and 41% YoY, through marketing campaigns and cost controlling measures reduce losses Retail 54 % Bangchak Retail Revenue Unit: THB Million 640 479 Industrial Service Export Wholesale Factories, Stations 22 % Jobbers, 16% 8% 240 206 170 Aviations Q3/18 Q2/19 Q3/19 9M/18 9M/19 Very low sulfur Other oil 6 companies Fuel Oil Bangchak Corporation Plc.

Marketing Network – Increasing market share & Thruput per station Service stations outlets Retail sales volume market share (%) 40.9% 40.3% 9M/18 9M/19 Source: DOEB 1,188 New Service +31 service stations Stations BCP market share reach all time high as of Sep 2019 9M/19 at 16.5% in Sep 2019 16.0% 6 12 sites Standard Type 5 76 sites COOP Type 15.6% (≈ 20% of Retail Sales Volume) (≈80 % of Retail Sales Volume) 12.5% 12.5% 12.2% 12.0% 10.0% 9.1% 1.8% 1.7% 1.7% 1.7% 1.7% 2.0% 4.3% 4.1% Thruput per station BCP Unit: K.Litre/Mo Supporting non-oil businesses 510 Standard 498 496 479 495 AVG Major oil* 464 436 452 446 430 (excl. BCP) Sep ’19 Sep ’19 46 stores 559 branches 131 128 BCP Co-op 125 118 116 +58 New stores +3 New stores 9M/19 9M/19 2015 2016 2017 2018 9M/19 7 Bangchak Corporation Plc. AVG Major oil includes PTT, ESSO, Shell, CALTEX

Bangchak B20 Promotion Campaign B20 is currently available in Almost 550 + stations Covered ALL regions and still expanding B20 sales volume more than doubles its previous quarter’s sales 22.6 % % of total Diesel sales through 1 9.7 % marketing business B20 Sales Volume 1 7.7 % Unit: Million Litre 13.9% 10.5% 57 52 46 6.4% 35 3.4% 29 1.8% 1.3% 17 9 5 4 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 8 Bangchak Corporation Plc.

BCP Group Portfolio – Subsidiaries BCP Group Portfolio – Refinery & Marketing Business Powe BCP Group Portfolio Subsidiaries Bio-based Natural Resources Power Plant Products Business Business Business 9 Bangchak Corporation Plc.

Power Plant Business – BCPG adding new capacity 3Q/19 Power Plant Group – EBITDA 710 MB (-2% QoQ, -54% YoY) Electricity Sales 240.0 Unit: Million kWh 234.9 Acquisition of Hydro power plant Namsan 3A in Laos (69 MW) 7.7 Laos JP TH 14.5 - Diversification of income to new type of renewable energy 37.9 hydroelectric power generation - Lao PDR has high potential of economic growth and hydro power plant development 82.7 217.8 81.3 78.1 197.0 7.7 5.4 5.0 13.9 Performance 75.9 70.0 64.2 QoQ – lower electricity sales of solar projects in Thailand and Japan result from seasonality factor Q3/18 Q2/19 Q3/19 9M/18 9M/19 YoY – EBITDA performance decreased mainly from one off item from selling of Nagi & Nikaho project in Q3/18 Operating Capacity (MW PPA) Share of profit from associated companies Q3/19 : 404 • Geothermal power plant 107 MB : higher from the lower Hydro 345 335 69 maintenance days 14 14 14 Wind • Wind power plant 16 MB : stronger wind speed than the usual 158 Geothermal seasonality and lower interest expense after negotiated 158 158 Solar 34 15 15 148 148 139 Solar Wind Q3/18 Q2/19 Q3/19 10 Bangchak Corporation Plc.

Bio-Based Product Business – Performance started to improve Biodiesel Production & Sales Volume Ethanol Production & Sales Volume 240 Unit: Million litres Sales Production Unit: Million litres Sales Production 221 207 195 151 145 124 117 87 82 80 74 66 63 53 51 46 46 42 44 Q3/18 Q2/19 Q3/19 9M/18 9M/19 Q3/18 Q2/19 Q3/19 9M/18 9M/19 Biofuel Price Movement 3Q/19 Bio-based Products Group Unit: Baht/litre Acc. EBITDA 296 MB (+118% QoQ, +98% YoY) 36 Ethanol Biodiesel Biodiesel – Started to turnaround from B20 promotion 34 Sales volume continuously improved  32 30 B100 gross margin improved, but glycerin margin declined YoY  28 26 Ethanol – Capacity added and better raw material cost management 24 Gross margin significantly increased from: 22 Higher sales volume (additional 100 KL/day capacity of KGI plant)  20 Source: EPPO 18 BBE plant has better managed raw material cost  KGI plant adjusted down molasses cost according to announced  domestic price to better reflect actual raw material cost 11 Bangchak Corporation Plc.