Bangchak Corporation Plc. Analyst Meeting Q1/2019 13 th May 2019 - PowerPoint PPT Presentation

Bangchak Corporation Plc. Analyst Meeting Q1/2019 13 th May 2019

Table of Content 01 02 04 03 Q1/19 Q1/19 Appendices Business Performance Financial Updates Update Performance

BCP Group Performance – Q1/2019 Key Takeaways Refinery & Trading 3,023 EBITDA • Crude run at 110 KBD Performance 68 • Total GRM declined to 3.49 $/BBL from dropping crack spreads 304 • BCPT continue to increase trading volume 1,959 694 • Unexpected HCU gas compressor maintenance Natural Resources 194 -317 Bio-Based Products 735 736 Marketing 94 Power Plant 66 • Total sales volume stable, Retail sales grew 4% YoY Marketing 612 570 • Net MKM at 71 st./litre soften following crude oil price upward trend 1,279 Refinery & Trading • Maintained 2 nd rank (15.6%) retail sales market share as of 3M19 517 465 -19 -1,419 Power Plant • Electricity generation from solar power plant remained stable • Irradiation rate stable YoY, but increased QoQ after winter season ended 1Q/18 4Q/18 1Q/19 • Ft rate recovering, leading electricity rate received to be on a rising trend • Share of profit from operation of Geothermal & Wind power plant improved Bio-Based Product • Ethanol sales volume increased from capacity added from KGI (+100 KL/day) Net Profit • Decreasing price of both ethanol & B100 resulting in margin squeeze 1,168 attributable to 214 owners of the parent Natural Resources -1,546 • Realize full quarter share of profit from OKEA at 8 MB, less than expected due to impairment loss on goodwill of Gjoa oil field acquisition from lowered gas price 1Q/18 4Q/18 1Q/19 • Production net to OKEA 19.5 kbopd • FX loss 99 MB from foreign currency loan to subsidiary 3

EBITDA Performance – BCP Group Q1/2019 Performance Compare to Target by Business Unit Unit: THB Million 200% Solar Power 736 150% Marketing 612 Refinery 6% 517 35% Target 100% 100% Biofuel E&P 29% 194 -19 25% 9% 50% Accounting EBITDA 2,098 Million Baht 0% 0.5 1.5 2.5 3.5 4.5 5.5 4 Bangchak Corporation Plc.

BCP Group Portfolio – Refinery & Marketing Business BCP Group Portfolio – Subsidiaries BCP Group Portfolio Refinery & Marketing Marketing Refinery and Business Trading Business 5 Bangchak Corporation Plc.

Crude oil price movement Unit: $/BBL Crude oil price 90 85 80 75 DTD 70 65 DB 60 55 Crude oil price plummeted at the 50 end of 2018, but started to recover 45 40 12 Unit: $/BBL Singapore VS BCP GRM 10 8 Singapore 6 4 BCP 2 0 6 Bangchak Corporation Plc.

Refinery Business Production Profile BCP Refinery Product Yield Actual Crude Run Unit: KBD 2% 3% 3% 2% 3% LPG 17% 19% 18% 18% 99% 21% Gasoline 95% 92% 91% 140.0 12% 11% 12% Jet 14% 12% 90% 130.0 120.0 70% 56% 110.0 118.8 Diesel 114.3 50% 53% 53% 110.1 109.4 53% 53% 100.0 50% 90.0 Crude Run UCO 3% 3% 3% 80.0 3% 5% 30% 70.0 Utilization 14% Fuel Oil 12% 12% 9% 7% 60.0 66.8 10% TAM = Turnaround Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 50.0 Maintenance Period 40.0 -10% 30.0 20.0 -30% 10.0 BCP Refinery Crude Sourcing 0.0 -50% Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 5% 1% Middle East TAM 48% 52% Far East 57% 56% 49% 4 months consecutive squeezed GRM for the first • time in decade 28% Others 12% 17% 20% 12% Price & Margin recover in March, but Hydrocracker • 31% 32% 29% Domestic 28% 24% went through maintenance Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Plan shutdown in July • 7 Bangchak Corporation Plc.

Refinery Business Refinery EBITDA GRM Performance Unit: $/BBL Unit: THB Million Accounting Operating Unit: THB Million 6.37 12.82 8.05 -1.72 3.49 2,140 4.39 1,929 1,927 0.66 1,348 1,279 517 548 1,077 977 8.81 0.09 Inventory G/L 7.59 6.71 5.94 Oil Hedging 3.43 -0.12 Market GRM -0.21 -0.40 -0.39 -0.03 -1,419 -0.22 -7.25 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 AVG Crude oil price movement ($/BBL) AVG Crack spread movement ($/BBL) Weaker GRM from global production over supply led to narrowed 77 17 IK/DB crack spreads 12 72 DTD 9 MB Inventory Loss, as BCP crude feed reflect average crude oil GO/DB cost in Q4/18 which has higher average price than Q1/19 7 67 UNL95/DB BCP Trading EBITDA 39 MB increased from higher transactions DB 2 62 after tapping to new products and new trade partners FO/DB -3 57 -8 52 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 8 Bangchak Corporation Plc. * Operating EBITDA : exclude Inventory gain/loss, One-time items, Gain/loss from FX forward contracts

Distribution channel – Retail market sales continues to grow as our main priority Total Sales Volume Total Sales Volume Unit: Million Litre / Month 342 344 334 350 (monthly AVG in the quarter) Retail Market Unit: % Portion of total sales volume in Q1/19 307 284 300 Marketing Business 250 Retail 54% Market 190 184 200 179 167 163 Industrial (retail market portion +1% from Q1/18) Market 150 112 111 93 86 100 82 Exports Industrial 58 (FO & UCO) 26% 51 50 82 46 Market 50 Wholesales 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2018 2019 Wholesales 7% Unit: Million Litres 1200 1,032 997 (+4%) 1000 800 517 489 600 400 Export 246 Q1/18 199 13% 151 138 200 Q1/19 0 Retail Industrial Wholesales Export 9 Bangchak Corporation Plc.

Marketing Performance – Retail market is the main priority Marketing EBITDA Net Marketing Margin Unit: THB Million Unit: Baht/Litre 735 0.85 0.83 0.75 612 0.71 0.70 509 468 465 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Bangchak Retail Revenue Total sales volume remained unchanged Unit: THB Million 201 Retail sales volume grows 4% YoY from customer base expansion,  193 service station sales push, and B20 & Hi-Premium diesel promotion 170 161 Industrial sales volume reduced 5% YoY from the intensified  147 competition and BCP sales channel management Total Marketing Margin declined from the higher product cost following crude oil price upward trend, and price promotion Bangchak Retail Revenue grew 31% YoY Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 10 Bangchak Corporation Plc.

Marketing Network – Increasing Market Share & Thruput per station Service stations outlets Market Share Jan- Mar’18 Jan- Mar’19 change (Retail Channel) 1,176 +10 New Service service stations 40.9 % 39.9 % Stations as of Mar 2019 15. 5 % 15. 6 % 1 1.9 % 12. 4 % 1 2.8 % 12. 5 % 6 14 sites Standard Type 5 62 sites COOP Type 9. 3 % 10.0 % (≈ 22% of Retail Sales Volume) (≈78% of Retail Sales Volume) 4. 4 % 4. 2 % 1. 8 % 1.7% 1. 7 % 1. 8 % 1.7% 1.9% Thruput per station 2000 BCP 510 496 485 1800 479 Supporting non-oil businesses (K.Litre / Mo) Standard 500 1600 450 451 446 435 464 1400 416 AVG Major Oil 1200 436 400 (excl. BCP) 1000 392 800 Mar’19 Mar’19 600 47 stores 300 529 branches Number of 559 400 527 499 457 460 444 standard 200 stations 200 0 +6 stores +2 stores 2014 2015 2016 2017 2018 Q1/2019 11 Bangchak Corporation Plc. *AVG Major Oil : PTT, ESSO, SHELL, CALTEX

BCP Group Portfolio – Refinery & Marketing Business BCP Group Portfolio – Subsidiaries BCP Group Portfolio Subsidiaries Bio-based Natural Resources Power Plant Products Business Business Business 12 Bangchak Corporation Plc.

Power Plant Business – BCPG Electricity Sales Green Power Plant EBITDA Profit from Japan solar Unit: Million kWh Unit: THB Million plant sold (793 MB) 75.2 81.6 78.1 76.9 76.0 1,542 14.9 3.9 13.9 4.1 Geothermal Plant Tax 9.2 Provision (-84 MB) JP 793 694 736 71.9 73.0 66.0 66.7 64.2 TH 570 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Operating Capacity (MWac) Solar Electricity Sales remained at the same level mainly from: Increase from COD of War Veteran Organization Solar • 332 336 345 326 326 project in Jul’18 ( 9 MW) & Gotemba (4 MW) 14 14 14 14 14 Wind Decrease from the selling of Nikaho & Nagi project in • Sep’18 (total 19 MW ) 158 158 158 158 158 Geothermal Irradiation rate remained stable YoY but increased QoQ • due to seasonal effect 34 15 30 15 34 Solar 139 139 139 130 Higher share of profit from associated companies: 130 Solar Geothermal power plant : 93 MB • Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Wind power plant : 29 MB • 13 Bangchak Corporation Plc.