Bangchak Corporation PLC Analyst Meeting Q3/2017 November 17, 2017 - PowerPoint PPT Presentation

Bangchak Corporation PLC Analyst Meeting Q3/2017 November 17, 2017

Performance Summary

BCP Group Portfolios 3Q17 EBITDA Performance Accounting 3,580 MB 28% YoY Marketing Refinery Operating Retail Sales Volume continue to grow High Crude Run at 110 KBD • • (6%YoY) 3,165 MB Satisfactory Market GRM at 6.66 $/BBL • Net MKM was squeezed from the lag • Inventory Gain of 450 MB • time in retail price adjustment for higher global crude oil price Green Power Plant Bio - Based Products Resources BCPI paid for additional investment in • Cycle for cassava based ethanol • Low season for solar projects in • LAC (current shareholding 16.1%) continue to have cost advantage Thailand & Japan Nido recorded impairment cost of 1,368 • Biodiesel performance recovered from • Geothermal plant in Indonesia started • MB from its withdrawal from Mid-Galoc higher sales volume and decreased contribute to EBITDA performance appraisal well stock loss 3 Bangchak Corporation Plc.

EBITDA Performance - BCP Group Accounting EBITDA Q3 Comparison Unit: THB Million 3,580 MB 2,798 MB Resources 44 Bio-Products 159 Resources 171 Power Plant 781 Power Plant 612 Marketing 474 Marketing 607 Refinery 2,198 1,503 Refinery Bio-Products -65 Q3/2016 Q3/2017 5,000 2.80 3.19 4,900 4,800 4,700 4,600 4,500 4,400 4,300 4,200 4,100 4,000 3,900 3,800 3,700 3,600 EPS 3,500 3,400 3,300 3,200 3,100 3,000 2,900 0.85 0.72 0.96 2,800 Unit: THB/Share 2,700 2,600 2,500 2,400 2,300 2,200 4,393 2,100 2,000 1,900 3,855 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 900 Net Profit 1/ 800 700 1,316 600 1,174 500 993 400 300 200 100 Unit: THB Million 0 Q3/16 Q2/17 Q3/17 9M/16 9M/17 1/ Profit attributable to owners of the Company 4 Bangchak Corporation Plc.

EBITDA Performance - BCP Group Accounting EBITDA 9M Comparison Unit: THB Million 10,169 MB 8,302 MB 270 Resources Resources 397 Bio-Products 252 195 Bio-Products Power Plant 2,276 Power Plant 1,991 Marketing 1,999 Marketing 2,531 Refinery 5,340 Refinery 3,389 9M/2016 9M/2017 5,000 2.80 3.19 4,900 4,800 4,700 4,600 4,500 4,400 4,300 4,200 4,100 4,000 3,900 3,800 3,700 3,600 EPS 3,500 3,400 3,300 3,200 3,100 3,000 2,900 0.85 0.72 0.96 2,800 Unit: THB/Share 2,700 2,600 2,500 2,400 2,300 2,200 4,393 2,100 2,000 1,900 3,855 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 900 Net Profit 1/ 800 700 1,316 600 1,174 500 993 400 300 200 100 Unit: THB Million 0 Q3/16 Q2/17 Q3/17 9M/16 9M/17 1/ Profit attributable to owners of the Company 5 Bangchak Corporation Plc.

BCP Group Portfolios Refinery Marketing Green Power Plant Bio - Based Products Resources 6 Bangchak Corporation Plc.

Refinery Business – Going beyond limit Production Profile Still running at an 96% 95% 95% optimal high rate Actual Crude Run Unit: KBD 93% 92% 92% 140 100% 130 90% 120 2017 Target 80% 110 116 114 112 100 110.03 110 111 KBD 114 70% 53% Crude Run 90 60% 80 70 50% Utilization 60 40% 64 50 30% 40 30 20% 20 (TAM) 10% 10 TAM = 0 0% Turnaround Maintenance Period TAM Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Crude Sourcing Product Yield Diversify Crude Sourcing : Maximize high value product Satisfactory GRM regardless of the changing crude sources 2% 3% 3% LPG 17% 19% 20% Gasoline 46% 12% 11% 13% Jet 71% Import 78% 50% 55% 52% Diesel 44% 2% UCO 3% 29% Domestic 1% 22% 15% 12% 10% Fuel Oil Q3/16 Q2/17 Q3/17 3Q/16 2Q/17 3Q/17 7 Bangchak Corporation Plc.

Refinery Business – Going strong Refinery EBITDA GRM Performance Unit: THB Million Unit: THB Million Unit: $/BBL 4.18 8.18 5.97 2,198 1.32 0.63 0.32 0.20 1,926 Accounting GRM 1,748 0.03 1,503 Inventory Gain Loss 1,383 6.66 6.38 Oil Hedging 5.62 916 Market GRM -2.82 Q3/16 Q2/17 Q3/17 Q3/16 Q2/17 Q3/17 Accounting Operating Crude Price & Crack Spreads ($/BBL) 80 4 DB DTD/DB Q3/17: Performance going strong 60 2 40 0 Most product crack spread was higher, boosted higher Market GRM, despite widening DTD/DB 20 -2 Q3/16 Q4 Q1/17 Q2 Q3 Completion of COGEN power plant help with refinery 20 UNL95/DB stability and lower electricity cost 15 10 Hydrocracker unit malfunction result in its operation GO/DB 5 to run sub-optimally 0 FO/DB -5 BCP Trading Pte. Ltd. contribute EBITDA 7 MB Q3/16 Q4 Q1/17 Q2 Q3 8 Bangchak Corporation Plc.

Distribution channel – Retail market is our main priority Total Sales Volume Total Sales Volume Unit: % Portion of total sales volume in 3Q2017 Unit: Million Litre / Month Push forward higher sales volume Marketing Business through the highest margin channel Retail Market 350 311 Retail 307 Market 50% 300 284 259 934 ML 251 250 235 Industrial Market Industrial 190 200 186 181 179 26% Market 161 163 483 ML 150 Exports 93 100 92 98 86 Export 69 82 55 16% 51 47 64 57 50 45 Wholesales 295 ML 0 Wholesales 9% 170 ML 9 Bangchak Corporation Plc.

Marketing Performance – Retail market is our main priority Net Marketing Margin Marketing EBITDA Unit: THB Million Unit: Baht/Litre Unit: THB Million 0.83 0.80 0.73 674 669 607 609 1.06 1.04 0.94 474 455 0.43 0.38 0.33 Q3/16 Q2/17 Q3/17 Accounting Operating Q3/16 Q2/17 Q3/17 Net Retail Margin Net Industrial Margin Q3/17: Slight decline from seasonal effect Retail sales volume grew 6 % YoY, but declined 2% QoQ due to rainy season Industrial sales volume declined from the higher sales push through retail market, flooding in some areas, and temporary intense price competition Marketing Margin declined from the lag time of retail price adjustment when global crude oil price increase 10 Bangchak Corporation Plc.

Marketing Network – Increasing Market Share & Thruput per station Jan- Sep’16 Jan- Sep’17 ∆ Market Share 37.0% 36.5% (Retail Channel) 1 5 . 0% 15.3% 12. 9 % 12. 5 % 12.9% 13.0% 5.7% 5.1% 15.3% 5. 0 % 4.7% 1.8% 1. 8 % 7. 9% 9. 4 % 1. 6 % 1. 6 % Thruput per station 573 570 Unit: K.Litre/Station/ Month 540 528 494 Several initiatives to 504 479 boost BCP’s thruput: 464 450 452 435 416 416 392  optimize current network 348  partnership with SPAR  new premium products  etc. 2013 2014 2015 2016 9M2017 BCP Standard AVG Major Oil BCP COCO *AVG Major Oil : PTT, ESSO, SHELL, CALTEX 11 Bangchak Corporation Plc.

Bangchak Service Station - Greenovative Experience 9M2017 + 35 New Service Stations 1,093 service stations as of September 2017 481 sites Standard Type 612 sites COOP Type 12 Bangchak Corporation Plc.

Bangchak Non-Oil Business – Progression 9M17 25 stores +19 branches stores 9M17 421 branches +50 branches branches 13 Bangchak Corporation Plc.

R&M Performance Refinery and Marketing business to extract benefit of the value chain Normalize Integrated Margin Unit: $/BBL $ 11.66 $ 8.56 $ 10.43 $ 12.58 $ 9.52 $ 10. 39 3.53 3.31 Net MKM 3.47 3.69 3.53 2.68 9.05 8.34 6.96 6.70 Market GRM 5.99 5.88 2012 2013 2014 2015 2016 9M2017 R&M as a fully integrated model profit can be optimized through business cycle Refinery Business earning was volatile due to market conditions and Turnaround maintenance (TAM) Marketing Business Captures a Demand Surge During Low Oil Price Environment 14 Bangchak Corporation Plc.

BCP Group Portfolios Refinery Marketing Green Power Plant Bio - Based Products Resources 15 Bangchak Corporation Plc.

Green Power Plant – Growing Capacity Q3/17: Expanding coverage as planned Green Power Plant EBITDA Unit: THB Million Solar PPA: Thailand 130 MW / Japan 30 MW 789 781 QoQ lower performance from low season (rainy 612 season) both in TH and JP led to lower irradiation YoY higher performance from operation commencement of various projects both in TH and JP Q3/16 Q2/17 Q3/17 Accounting Wind Electricity Sales of solar power plant PPA: Philippines 14.4 MW (net to BCPG) Unit: Million kWh Thailand Japan Low season led to less wind speed at project site 14 Geothermal 13 PPA: Indonesia 182 MW (net to BCPG) 8 Share of profit from Jan – Sep’17 was recorded in 68 Q3/17 altogether 65 61 Q3/16 Q2/17 Q3/17 16 Bangchak Corporation Plc.

Bio-Based Products – Biodiesel business back on good track Bio-Based Products EBITDA Biodiesel Plant: Production and Sales Volume Unit: THB Million Unit: THB Million 213 Daily Production Sales Volume Unit: K. Litre per day 230 17 159 180 139 B7 B5-B7 74 17 689 9 682 669 672 130 B3-B5 89 41 59 74 Accounting 80 Operating 478 452 9 121 93 88 30 68 -65 41 -3 8 -20 -60 -3 -70 Q2/17 Q3/17 Q3/16 Q3/16 Q2/17 Q3/17 Bangchak BioEthanol Ubon BioEthanol Biodiesel BBE Ethanol Plant Production and Sales Volume Biodiesel Daily Production Sales Volume Unit: K. Litre per day Performance recovered from higher sales volume and decreased inventory loss 129 127 121 118 B7 mixing portion throughout all quarter 94 91 Ethanol Both plants benefit from declining cassava price while ethanol price increased Q1/17 Q2/17 Q3/17 17 Bangchak Corporation Plc.