BANGCHAK COR ORPOR ORATION ON PCL. ANALYST MEETING Q1/2020 May - PowerPoint PPT Presentation

BANGCHAK COR ORPOR ORATION ON PCL. ANALYST MEETING Q1/2020 May 20, 2020

TABLE OF OF C CON ONTENT Q1 Q1/2020 01 01 Performance Update Q1/2020 Q1 02 02 Fin inancia ial Performance 03 03 Busin siness ss Update 04 Appendix ix 2

BCP PERFORMANCE Consolidated Performance (MB) EBITDA by Business Group (MB) Q1 /2020 Recap: Refinery, Marketing and Natural Resources business were severely 1,073 517 affected from weakened cracks spread and lower oil demand due to Refinery -2,590 unexpected collapse of OPEC+ alliance and the COVID-19 pandemic Accounting EBITDA (MB) Net Profit (MB) 612 Marketing EPS 0.16 0.38 -3.49 359 81 (THB/Share) 1,9 ,959 2,4 ,420 736 795 770 Power Plant 214 214 620 620 Bio-based products 374 510 194 -2,5 ,546 -4,6 ,661 Natural Resources Q1/19 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20 -18 -57 -1,227 Net Profit(loss) attributable to the owners of the parent Q1/19 Q4/19 Q1/20 3

BCP Group Portfolios – Q1/20 Key Takeaways Operating Net Loss -4,661 MB EBITDA -2,546 MB 1,173 MB EBITDA Bio-Based Products Operating EBITDA 672 MB o Government advocacy campaigns, efficient 81 81 o Marketing sales volumes slightly declined 6% YoY raw material management and production 510 510 81 o Market share at to 15.7% (Jan to Mar 2020) process pushed EBITDA +162% YoY Marketing 770 770 o First time Inventory gain/loss allocation Power Plant o BCPG fully acquired Nam-San 3B in Laos (45 MW) Refinery & Trading in Feb 2020 -2,5 ,590 Operating EBITDA 469 MB o Total electricity sales increase +48% YoY from o Average crude run at 104.3 KBD with 87% investment in hydropower and wind project utilization rate Natural Resources o Operating GRM declined to 2.87 $/BBL from weakened cracks spread, lower oil demand and -1,2 ,227 inventory loss o OKEA solid production performance at ~19.1 kboe/d o BCPT increased trading transaction by 16% YoY o Realize share of loss from OKEA at 1,199 MB due to FX loss and Impairment o Nido assets impairment of 1,366 MB Note: Net loss attributable to the owners of the parent Operating EBITDA excludes Inventory gain/loss, One-time items, Gain/loss from FX forward contracts 4

Crude Oi $/BBL $/BBL -6 -4 -2 10 12 14 0 2 4 6 8 10 20 30 40 50 60 70 80 90 Jan-18 Jan-18 Jan-18 Singapore VS BCP GRM Crude oil price Jan-18 Oil Price and GRM Feb-18 Mar-18 Mar-18 Mar-18 Apr-18 Apr-18 May-18 May-18 May-18 May-18 Jun-18 Jun-18 Jul-18 Aug-18 Jul-18 Aug-18 Aug-18 Sep-18 Oct-18 Sep-18 Oct-18 Oct-18 Nov-18 Dec-18 Nov-18 Dec-18 Dec-18 Jan-19 Feb-19 Jan-19 Feb-19 Feb-19 Mar-19 Mar-19 Apr-19 May-19 Apr-19 May-19 May-19 Jun-19 Jul-19 Jun-19 Jul-19 Jul-19 Aug-19 Sep-19 Aug-19 Sep-19 Sep-19 Oct-19 Nov-19 Oct-19 Nov-19 Nov-19 Dec-19 Jan-20 Dec-19 Jan-20 Jan-20 Feb-20 DB DB Mar-20 Feb-20 BCP DTD Apr-20 Singapore Mar-20 Apr-20 May-20 Apr-20 5

Refinery Busi siness ss: : Q1 Q1/20 Acc. . EBITDA -2,5 ,590 MB (-601% Y YoY) / ) / Op Operating EBITDA 4 469 MB Crude run Product Yield Operating GRM Hedging Inventory Gain/Loss 3.49 4.53 4.00 6.12 (6.16) 3% GRM Performance ($/BBL) 97% 97% LPG 94% 94% 92% 92% 92% 92% 87% 87% 0.0 .02 Production Profile 140 19% 0.0 .08 Gasoline 130 90% 0.4 .43 120 12% 0.0 .09 JET 70% 0.2 .26 110 7.6 .68 116.9 .9 5.61 112.7 .7 100 110.8 .8 4.9 .95 110.1 .1 104.3 .3 50% 3.4 .43 2.8 .87 90 (0 (0.0 .09) 80 30% 70 (0.0 (0 .03) (0.3 (0 .33) Diesel 52% (3 (3.7 .70) 60 10% 50 (9.2 (9 .29) 40 -10% 30 6% UCO 20 -30% 10 8% FO 0 -50% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q1/20 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 o Operating GRM was weakened as the crack spread is continue to decline 20 LSFO/DB across the globe because of the consequences of COVID-19 Lockdown and 15 GO/DB unexpected collapse of the OPEC+ alliance, resulted in high crude oil supply Crack Spreads ($/BBL) 10 IK/DB and lower market demand 5 UNL95/DB 0 o Recorded Inventory loss of 2,774 MB (Including NRV) from the crude oil price HSFO/DB -5 making severe downward adjustments in the Global market -10 o BCPT recorded larger gross profit from the increase in trading transaction by -15 16% YoY, especially, the Low Sulphur Fuel Oil product which demand -20 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 increased from the IMO measure. 6

Bangchak Dist stribution Channel Total Sales Volume ( % Portion of total sales volume in Q1/20) WHOL OLESALE 10 % 10 Total Sales Volume (ML/Mo) RETAIL M MARKET 56 56 % Retail 350 300 250 Industrial 200 150 EXPOR ORT Export 12 12 % 100 50 INDUSTRIAL Wholesale 0 MARKET Q1/12 Q1/13 Q1/14 Q1/15 Q1/16 Q1/17 Q1/18 Q1/19 Q1/20 22 % 22 7

Marketing Busi siness: ss: Q1 Q1/20 A Acc. . EBITDA 81 M MB (-87% Y YoY) / ) / O Operating EBITDA 672 M MB Net Marketing Margin (Baht/Litre) o Fuel consumption declined due to the impact of COVID-19 pandemic o Industrial sales volume drastically declined from the intense competition and the extended lockdown measures and limitation imposed on both air and ground 0.83 0.79 0.77 travelling, resulting in huge drops in Jet and Diesel 0.71 0.70 o Retail sales volume slightly decreased due to the effects of the COVID-19 outbreak during the month of March Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 o Net Marketing Margin increased due to the decline in finished product cost in * *Net MKM exclude Inventory Gain/(Loss) and NVR Q1/20 lowered significantly in accordance to the crude oil price in global market MK HSD, MOFUEL & JET Sale Volume (ML) o Inventory Loss of THB 591 million (including NRV) following to the company HSD, MOFUEL & JET Sale Volume (ML) allocation policy for Inventory Gain/[Loss] and NRV among Refinery Business and (ML) 1,000 Marketing Business. HSD 715 800 Non Oil Business 600 o BCR is still developing, expanding and focusing on store MOGAS 410 410 400 management, on top with various sale promotions led BCR to hit JET 216 27% YoY increase in revenue and 79 % YoY increase in EBITDA 200 o BCR hosted the “You Stay Home, We Delivery for You” campaign during 0 the periods advocating people to stay home to curb the COVID-19 outbreak Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 8

Marketing Network Retail Sales Volume Market Share (%) Thruput per Station (K.Litre/Mo) 3M/19 3M/20 550 Source: DOEB & BCP 510 510 498 498 BCP Standard 496 496 495 39.8% 41.4% 479 479 453 453 .7% 15.6% 15.7 450 464 12.5% 12.4% 12.0% 452 11.8% 436 436 446 AVG Major oil* 10.0% 431 9.7% (excl. BCP) 407 2.0% 1.8% 1.9% 1.7% 1.6% 1.7% 4.2% 4.1% 350 2015 2016 2017 2018 2019 3M/20 Promoting B10 Promoting B10 as Diesel primary grade which available in the service stations >1,000 stations across the country 9

Power P Plant Busi siness ss: : Q1 Q1/20 EBITDA 7 770 MB (+ (+5% YoY) ) Electricity Sales (Million kWh) Operating capacity rose 39% YoY from the acquisition of Hydropower plant Namsan 3A and 3B in Laos (114 MW) 147 Laos JP TH 113 Electricity sales performance +48% YoY 64 83 81 34 76 o Investments into the hydropower plant in Laos, the Nam San 3A 8 4 5 3 4 5 and Nam San 3B project o COD of the wind power plant in Thailand, “Lom Ligor ” 79 76 75 72 70 o JP sales 24% reduced , mainly from the reduction of electric power purchased (curtailment) from Japan Electric Power Company during Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 periods of low electricity demands Share of profit from associated companies: YoY Operating Capacity (MW PPA) 452 o Geothermal power plant 67 MB , dropped by 25 MB. 406 404 Hydro 114 o Performance was improved due to lower period of shutdown, 335 326 69 69 14 Wind 14 14 14 14 o One-time items of -67 MB (tax provision 24 MB and allowance for Geothermal 158 158 158 158 account receivable of 43 MB) 158 Solar 15 o 15 15 15 PH Wind power plant 24 MB , slightly decreased since Q1/19 had 15 Solar higher storm than usual 150 152 139 148 148 Wind Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 10 10

Bio-Base sed Product B Busi siness: Q1 ss: Q1/20 E EBITDA 5 510 MB (+ (+162% Y YoY) POW OWER PLANT B BUSINESS BIODIESEL BUSINESS ( Operates by BBF) Biodiesel Production & Sales Volume (Million litres) Capacity 1,000,000 L/D Production Sales Better performed both YoY and QoQ due to the 88 88 87 87 82 82 80 80 78 78 74 74 71 71 69 69 B100 price adjusted upward significantly by 67 67 61 61 government’s various measures o Despite, lower demand from seasonality and the COVID-19 outbreak in this quarter Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 o The production & Sales volume were pressured from intense competition of the Biodiesel market, in which the B100 Average Price (Baht/Litre) national production capacity increased 8% YoY 40 35 o The increase of the B100 price combined with the ability to 30 efficiently manage raw material resulted in improving gross profit by 472% YoY and 62% QoQ 25 20 Source: EPPO 15 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 11 11