BANGCHAK COR ORPOR ORATION ON PCL. OP OPPOR ORTUNITY DAY Q1/2020 May 29, 2020
TABLE OF OF C CON ONTENT 01 01 COV OVID – 19 M Mit itig igatio ion Measu sures 02 Performance & B & Busin siness ss Update 03 Ou Outlook f for The Y Year 2
The COV OVID-19 outbreak i is c s causi sing widesp spread i impact a across t ss the globe CO COVID VID-19 19 Pandemic andemic World Economic Outlook - Real GDP Growth (%) 10.0 9.2 9.0 8.2 7.8 7.6 8.0 7.0 7.0 6.1 6.1 5.9 5.8 6.0 5.0 4.8 4.7 4.3 4.0 3.0 2.9 2.7 2.4 2.3 2.0 1.2 0.7 0.6 0.5 0.0 -0.6 -2.0 -1.7 -3.0 -4.0 -6.0 -5.2 -5.9 2019 2020F 2021F -6.7 -8.0 World ASEAN-5 Source: IMF - WORLD ECONOMIC OUTLOOK - THE GREAT LOCKDOWN, April 2020 3
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 4
BCP G Group Mitigation Measu sures We have assessed the situation and prepared operational guidelines to contend with the COVID - 19 outbreak CO COVID VID-19 19 Pandemic andemic o Business Continuity Management [BCM] which encompasses the Epidemic Crisis Management Plan o Emphasis is put on the safety and health of employees, customers and associates o Prevent and control the spread of the COVID-19, which is closely monitored Safety M Measu sures Busin siness ss Contin inuit ity Measu sures Corporate Socia ial BCP group implemented measures Resp sponsib sibil ilit ity and plan to protect our employees The company and business in this pandemic. The • Adjusted production & marketing plan The company has been supporting ongoing situation has been closely • Lowered expenses & investments both government and the public monitored and systematically handled • Carefully managed liquidity sectors through various social • Set up Innovation Continuity Task activities as well as “Bangchak Force committee Group Stronger Together” 5
Safety Measu sures BCP group has announced measures to prevent and control the spread of the COVID-19 The ongoing situation has been closely monitored and systematically handled “ Business Continuity Management [BCM] ” encompasses the Epidemic Crisis Management Plan Continuously operate • Adjust its operation hours for • Confine the perimeters of the employees working in shifts control room building “Work From Home” Boost the confidence of customers at service station o Strictly manage hygiene at various touch points policy o Require the forecourt staff to wear medical o Implement strict measures to prevent mask and measure body temperature and control the spread of COVID-19 o Provide alcohol gel o Utilize technologies to proceed the operations smoothly 6
Reevaluate and adjust OPEX & CAPEX Busi siness ss Continuity Measu sures Cut, delay , or postpone low priority projects o Adjusted production & marketing plan o Follow the principles of law and must give utmost regard to safety Financial: Liquidity Management “Postponement must not hinder the core business” o Manage working capital to coincide with operations OP OPEX CAPEX o Manage debts to be paid on time ≈ 20% 20% ≈ 20 20% o Secure funds , both short term loans and long term loans as a contingencies for circumstances o Successfully issued 8,000 MB debenture in May 2020 Others 0.4% Bio-based Products Refinery 5% 24% Innova vation CAPEX Plan Continuity Marketing 22,8 ,800 MB MB Task sk Force 5% New Normal BCPG o Develop the incumbent business or devise ways to 66% implement new businesses o Find alternate sources of earnings and keep pace 7 7
Corporate Social R Resp sponsi sibility Bangchak’s mission under the “ Bangchak Group Stronger Together” circumscribing all stakeholders 8
TABLE OF OF C CON ONTENT 01 01 COV OVID – 19 M Mit itig igatio ion Measu sures 02 Performance & B & Busin siness ss Update 03 Ou Outlook f for The Y Year 9
BCP Group PERFORMANCE Refinery, Marketing and Natural Resources business were (Consolidated) severely affected from weakened cracks spread and lower oil demand due to unexpected collapse of OPEC+ alliance and the COVID-19 pandemic Accounting EBITDA (MB) Net Profit (MB) 13,421 EPS 3.47 4.07 1.79 1.18 -3.49 11,363 (THB/Share) 10,201 8,709 5,608 4,773 2,463 1,732 -4,661 -2,546 2016 2017 2018 2019 Q1/2020 2016 2017 2018 2019 Q1/2020 Net Profit(loss) attributable to the owners of the parent 10
11 BCP Group EBITDA Q1/20 (By Business Unit) Refinery o Average crude run at 104.3 KBD ( 87% utilization rate) o Operating GRM declined to 2.87 $/BBL from weakened cracks spread, lower oil demand and inventory loss o Reduced crude run in March to 94 KBD (2,546) (2,590) o Government advocacy campaigns, efficient raw material management and production process pushed EBITDA +162% YoY 770 Bio-Based Products (1,227) Power Plant 510 81 Other o BCPG fully acquired Nam-San 3B in Natural Resources (90) Laos (45 MW) in Feb 2020 Marketing o OKEA solid production performance at ~19.1 kboe/d o Total electricity sales increase +48% o Marketing sales volumes slightly declined 6% YoY o Realize share of loss from OKEA at 1,199 MB due to YoY from investment in hydropower o Market share at to 15.7% (Jan to Mar 2020) FX loss and Impairment and wind project o o First time Inventory gain/loss allocation Nido assets impairment of 1,366 MB 11
Refinery B Busi siness ss Facing a challenging time as oil price collapsed and COVID-19 has hammered global oil demand o Operating GRM was weakened as the crack spread is continue to Production Profile Estimated 2020 decline and recorded Inventory loss of 2,774 MB (Including NRV) 100 KBD 94% 93% o BCPT recorded larger gross profit from the increase in trading 87% Utilization 85% 84% transaction by 16% YoY , especially, the Low Sulphur Fuel Oil Rate 113 product which demand increased from the IMO measure 111 104 102 101 To Counter The Crisis Crude Run • Reduced production rate since March due to lower demand TAM TAM (KBD) 2016 2017 2018TAM 2019 1Q2020 • Split TAM: plant#2 in Mar to Apr 2020 & the rest in 2021 TAM = Turnaround Maintenance Period Product Yield Source of Crude GRM Performance Maximize high value product Diversify Crude Sourcing 6.53 7.23 5.61 4.55 (6.16) 2% 3% LPG Gasoline 18% 0.60 19% 0.45 29% 0.11 34% Domestic 0.25 0.08 Jet 13% 12% 0.26 7.10 6.38 5.99 5.41 2.87 (0.27) Diesel 50% 60% 51% 52% (0.98) FE (1.23) (9.29) 0.2% ME 4% UCO Operating GRM Hedging Inventory Gain/Loss 6% 16% 11% 11% Fuel Oil Other 8% 2019 Q1/2020 2019 Q1/2020 2016 2017 2018 2019 Q1/20 12
Marketin ing Busin siness ss - Fuel consu sumptio ion declin ined due to t the im impact of COV OVID-19 19 pandemic ic 0.79 0.79 0.78 Net Marketing 0.77 Historical Market Share (Retail Channel) Margin 0.75 (THB / Litre) 6,218 6,016 5,945 5,789 Retail 15.9% 15.7% 15.6% Marketing 1,921 15.4% Industrial 1,925 2,196 15.1% 2,180 Sales Volume (ML) Source: DOEB 1,426 4,020 4,297 3,820 405 3,609 2016 2017 2018 2019 Q1/2020 1,020 2016 2017 2018 2019 Q1/2020 Thruput pers Station (K.Litres/SS/Mo) BCP Standard type o Sales volume drastically declined from COVID-19 outbreak AVG Major oil (excl. BCP) Industrial sales: drop in Diesel and Jet (Jet decreased in March and zero o 510 sales since April) 496 498 479 464 453 452 446 431 o Retail sales volume decreased 6% in March and 20% in April 407 o Inventory Loss of THB 591 million (including NRV) o Non-oil business, BCR is still developing, expanding and focusing on store management 2016 2017 2018 2019 3M/20 led BCR to hit 27% YoY increase in revenue and 79% YoY increase in EBITDA *AVG Major Oil : PTT, ESSO, SHELL, CALTEX 13 13
Power P Plant Busi siness ss Performance remains resilient BCPG G has a t s a total capacit ity of 842 842 MWppa • Ope Operating capacity y 452 452 MWppa EBITDA Performance (MB) • Deve veloping 390 MWppa 3,569 Data as of February 2020 3,088 2,964 Japan 2,559 Operating: 15 MWppa Laos Developing: 75 MWppa Operating: Hydro 114 MWppa 770 Developing: Wind 270 MWppa 2016 2017 2018 2019 1Q/2020 Thailand Operating : Solar 142 MWppa : Wind 9 MWppa Operating capacity rose 39% YoY from the acquisition Developing: Solar 15.5 MWppa of Hydropower plant Namsan 3A and 3B in Laos The Philippines Operating : 14 MWppa Operating Capacity (MW PPA) 452 Developing : 6 MWppa 406 114 Hydro 332 69 326 14 14 Indonesia 14 14 Wind Operating : 158 MWppa 158 158 158 158 Geothermal Developing : 24 MWppa 145 15 15 15 Solar 30 20 152 150 Solar 125 139 130 Wind SOLAR ENERGY WIND ENERGY GEOTHERMAL ENERGY HYDROPOWER 2016 2017 2018 2019 Q1/20 14
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