Bangchak Corporation Plc. Opportunity Day FY2018 March 1 st , 2019 - PowerPoint PPT Presentation

Bangchak Corporation Plc. Opportunity Day FY2018 March 1 st , 2019 Bangchak Corporation Plc.

FY2018 Performance Summary

BCP Group Portfolios – FY2018 Key Takeaways Refinery & Trading Marketing 2018 Crude Run meet the budget (102 KBD) and Full year Market Share at 15.8% for 2018 • • if exclude TAM days, average daily Crude Run Retail market grow 5% YoY, but Industrial market • was historical high (115 KBD) soften due mainly to limited supply during TAM GRM was affected by lower UNL95 spread and • Marketing Margin still in a healthy level, backed • lower crude run by various high margin products 1,489 MB Inventory Loss • Green Power Plant Bio-Based Product Ethanol sales volume grew from full year • Capacity & Regional Expansion performance realized from KSL Additional 14 MW COD of Solar Power Plant • Biodiesel sales volume increased from B7 mixing • Sold 19.3 MW power plant in Japan with 793 MB • portion throughout the year profit before tax Biodiesel gross margin recovered from last year, • Total electricity sales marginally grew 2% • but still affected by the low price level Natural Resource Successfully recapitalize OKEA as associated • company and acquired assets in Draugen & Gjøa on 30 Nov’18 Performance contribution from Nido • discontinued from Q3/18 onwards, after the share divestment 3 Bangchak Corporation Plc.

BCP Group Performance – 2018 Key Takeaways Operating EBITDA stay the same level as 2017 EBITDA FY Comparison Despite 2018 refinery’s 45 days turnaround maintenance Unit: THB Million 13,421 11,963 11,532 286 Natural Resource 529 Bio-Based Product 10,201 Natural Resource 286 43 754 2,846 779 Bio-Based Product Green Power 117 Plant 692 2,695 3,468 Green Power Plant 2,301 Marketing 3,569 2,097 2,194 Marketing 2,177 Refinery 7,596 6,268 5,330 Refinery 3,928 Accounting Operating Accounting Operating *Operating EBITDA = EBITDA exclude inventory gain/loss, FX Fwd, one-time items 2017 2018 4.07 1.79 6,000 EPS Factors affecting 2018 Profit Unit: THB/Share 4,000 - Inventory Loss 1,594 MB (include LCM) 5,608 - Oil Hedging Loss 442 MB Net Profit 1/ 2,000 2,463 - Impairment Loss 441 MB Unit: THB Million 1/ Profit attributable to owners of the Company 0 2017 2018 4 Bangchak Corporation Plc.

BCP Group Portfolios Refinery Marketing Natural Resources & New Businesses Bio-based Products Green Power Plant 5 Bangchak Corporation Plc.

Refinery Business – Strong operation despite TAM Product Yield Operation Excellence Maximize high value product 2018 - Record high monthly crude run 123 KBD in March’18 2% 3% 3% 3% 3% 3% LPG - 85% Full Year Utilization rate, despite 45 days TAM in Q2 17% 19% 18% 19% 19% 21% Gasoline crude run maximization tested and proven in preparation for capacity expansion project 12% 11% 14% 12% 12% 12% Jet 53% 53% 51% 53% 53% 53% 95% Utilization rate on Diesel • nameplate capacity 3% 2% 3% 3% 3% UCO 5% Production Profile 105% Utilization rate on full • 13% Fuel Oil 12% 12% 9% 10% 7% complex refinery capacity Actual Crude Run TAM Q1/18 Q2/18 Q3/18 Q4/18 . 2017 2018 Unit: KBD *Normalized crude run *Normalized crude run excluding TAM days excluding TAM days Crude Sourcing 115* Diversify Crude Sourcing : 119 114 111 109 Satisfactory GRM regardless of the changing crude sources 119* 102 67 69% 71% 72% 72% 76% 77% Import Q1/18 Q2/18 Q3/18 Q4/18 2017 2018 31% 29% 28% 28% 24% 23% Domestic (TAM) (TAM) TAM Q1/18 Q2/18 Q3/18 Q4/18 . 2017 2018 6 Bangchak Corporation Plc.

Refinery Business – Operation still strong, affected by oil price volatility GRM Performance Unit: $/BBL Refinery EBITDA 7,596 Unit: THB Million Unit: THB Million 6.37 12.82 8.05 (1.72) 7.23 5.61 6,268 Accounting Operating 4.39 5,330 0.66 0.60 Inventory G/L 0.25 3,928 Oil Hedging 8.81 7.59 7.10 6.71 6.38 5.94 Market GRM -0.12 -0.27 -1,419 1,279 1,348 2,140 1,927 1,077 1,929 -0.39 -0.21 -0.40 977 -0.22 -1.23 -7.25 Q1/18 Q2/18 Q3/18 Q4/18 2017 2018 Q1/18 Q2/18 Q3/18 Q4/18 2017 2018 Crude Price & Crack Spreads ($/BBL) 2018 – Strong operation, with cushion from supporting businesses 74 DTD DB 64 EBITDA soften mainly from: 54 Weaker GRM from a drop in UNL95 spread and higher crude cost • 44 Lower crude run during 45 days TAM in Q2/18 • Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 1,489 MB Inventory Loss in 2018, compared to 834 MB • 17 Inventory Gain in 2017 IK/DB 12 GO/DB BCP Trading EBITDA 76 MB increased from higher transactions after 7 UNL95/DB tapping to new products and markets 2 FO/DB -3 Share of profit from Bongkot Marine Service 3 9 MB -8 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 * Operating EBITDA : exclude Inventory gain/loss, One-time items, Gain/loss from FX forward contracts 7

Distribution channel – Retail market sales continues to grow as our main priority Total Sales Volume Total Sales Volume 342 334 350 Unit: Million Litre / Month Retail Market Unit: % Portion of total sales volume in 2018 307 (monthly AVG in the quarter) 284 300 Marketing Business 259 250 Retail 53% Market 190 186 184 200 179 Industrial 167 (retail market portion Market +4% from 2017) 150 112 111 Exports 92 93 (FO & UCO) 86 100 Industrial 25% 58 82 51 50 47 Market Wholesales 50 0 Wholesales 8% Unit: Million Litre 5,000 4,020 (+5%) 3,820 4,000 3,000 2,196 1,925 2,000 1,121 Export 1,026 2017 14% 706 622 1,000 2018 0 Retail Industrial Wholesales Export 8

Marketing Performance – Retail market is the main priority Net Marketing Margin Marketing EBITDA Net Retail Margin Net Industrial Margin 2,359 2,254 Unit: Baht/Litre Unit: THB Million Oil Business Non-oil Businesses 0.83 0.75 0.85 0.77 0.78 0.70 (include elimination) 1.05 1.03 0.97 0.96 0.93 0.83 735 509 468 465 0.46 0.44 0.43 0.40 0.41 0.35 -77 -58 Q1/18 Q2/18 Q3/18 Q4/18 2017 2018 Q1/18 Q2/18 Q3/18 Q4/18 2017 2018 20 18 – Satisfied Margin, retail market prioritized Retail sales volume grows 5% YoY from customer base expansion and service station sales push, but Industrial sales volume reduced 12% YoY from the intensified competition and limited stock during TAM Net Marketing Margin remain at the same level as in 2017, although there was a diesel price cap during the middle of the year, but crude oil price dropped during Q4/18 helped increasing margin BCR revenue growth from branches expansion, but EBITDA still negative from high SG&A expense 9 Bangchak Corporation Plc.

Marketing Network – Increasing Market Share & Thruput per station 50.0% 20.0% Market Share Jan- Dec’17 Jan- Dec’18 change Historical (Retail Channel) 43.1% 41.5 % 41.1% 45.0% 19.0% Market Share 41.1% 15. 4 % 15. 8 % (Retail Channel) 40.0% 18.0% 12. 4 % 12. 7 % 1 3.0 % 12. 6 % 35.0% 17.0% 9. 5 % 9. 4 % 15.8% 30.0% 16.0% 15.4% 4. 6 % 4. 3 % 15.1% 15.1% 15.0% 1. 8 % 1.7% 25.0% 15.0% 1. 6 % 1. 7 % 14.5% 20.0% 14.0% 0.1% 0.6% 12.8% 12.7% 15.0% 13.0% 12.6% 10.0% 12.0% Thruput per station BCP Standard 2000 510 496 1800 479 (K.Litre / Mo) 500 5.0% 11.0% 1600 450 451 446 AVG Major Oil 464 1400 416 (excl. BCP) 0.0% 10.0% 1200 436 400 2014 2015 2016 2017 2018 1000 392 800 600 300 BCP Thruput for standard stations AVG Number 527 400 499 457 460 444 of standard continues to surpass major oil’s 200 stations 200 0 2014 2015 2016 2017 2018 10 Bangchak Corporation Plc. *AVG Major Oil : PTT, ESSO, SHELL, CALTEX

Bangchak Service Station – Expansion Progression in 2018 +74 New 1,175 service stations Service as of Dec 2018 Stations Dec ’18 523 branches 5 55 sites Standard Type (≈75% of Retail Sales Volume) +149 stores 6 20 sites COOP Type (≈25 % of Retail Sales Volume) Dec ’18 45 stores +13 stores *COOP Type is small sized service station owned by farmers cooperatives 11 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 $ 9.98 $ 1 0.94 3.53 3.31 3.84 3.47 Net MKM 3.60 3.53 2.68 9.05 8.34 7.10 6.96 6.38 Market GRM 5.99 5.88 2012 2013 2014 2015 2016 2017 2018 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 12 Bangchak Corporation Plc.

BCP Group Portfolios Refinery Marketing Natural Resources & New Businesses Bio-based Products Green Power Plant 13 Bangchak Corporation Plc.