Bangchak Corporation Plc. Opportunity Day Q2/2018 August 29 th , - PowerPoint PPT Presentation

Bangchak Corporation Plc. Opportunity Day Q2/2018 August 29 th , 2018 1 Bangchak Corporation Plc.

BCP Group of Businesses – optimized growth platform Vayupak Fund Social Security Office Public Ministry of Finance 9.98% 14.66% 13.52% 61.83% Bangchak Corporation Plc. Paid – up Capital 1,376,923,157 Baht As of 14 Mar ‘18 Current Core Earning Engines New Growth Engines Refinery and Green Power Marketing Natural Resources Bio-based Trading Business Products Business Business Business Plant Business National leader of bio- Petroleum E&P and Electricity generation Complex Refinery with Own oil products based products Lithium Mining business from clean and renewable capacity of 120 KBD distribution networks sources To preserve the company’s with on-going value Retail sales market share at To capture biofuel 15.8% (2 nd rank), with 1,140 longterm competitiveness enhancement projects to Mix of green power plants demand and develop high increase efficiency and service stations nation-wide, across solar, wind and value innovative bio-based capacity, along with equipped with supplementary geothermal with current products integration to our own non-oil businesses to improve capacity of 336 MW distribution channels sales volume 70% holding 60% holding (currently) Market Cap : 36 bn. THB To be listed in SET : Q4/18 BCP Market Cap : 49 bn. THB 2

BCP Group Performance Growth 2012 - 2017 EBITDA EBITDA Performance 13,663 CAGR = 12% Unit: Million Baht 14,000 11,363 11,081 12,000 9,463 10,000 7,770 8,000 6,358 5,162 6,000 4,000 2,000 - 2012 2013 2014 2015 2016 2017 6M2018 10,000 9,000 8,000 Net Profit* 7,000 5,778 6,000 Unit: Million Baht 4,773 4,652 4,273 4,151 5,000 4,000 2,153 3,000 2,000 696 1,000 - 2012 2013 2014 2015 2016 2017 6M2018 *Profit attributable to the owners of the company 3 Bangchak Corporation Plc.

EBITDA Performance - BCP Group 1H2018 Highlights 6M2018 Performance Compare to Target by Business Unit Unit: THB Million Refinery 200% 3,207 45 days refinery Turnaround Maintenance (TAM), led to softened performance in Q2/18 E&P 104 150% Solar Power Marketing 50% 2% Despite TAM, Retail sales volume managed to grow Biofuel 1,457 1,244 475 6% YoY, outpaced service station industry’s growth Target 100% 100% 7% 20% 4% 23% Power Plant continues to contribute stable income 50% Bio-based products group performance highly grew YoY, proved the amalgamation with KSL GI to be bio Accounting EBITDA 6,358 Million Baht beneficial 0% 0.5 1.5 2.5 3.5 4.5 5.5 Performance already bottomed out, 2H2018 will 7,000 get better as BCP resume normal operation 7,000 EBITDA EPS 6,000 2.23 1.56 6,000 Unit: THB Million 5,000 Unit: THB/Share 5,000 4,000 4,000 3,000 6,589 6,358 3,000 Net Profit 1/ 2,000 2,000 3,076 2,153 1,000 Unit: THB Million 1,000 0 0 6M/17 6M/18 6M/17 6M/18 1/ Profit attributable to owners of the Company 4 Bangchak Corporation Plc.

Refinery Business – Maintain high production rate & Satisfactory GRM Maximize high value product Production Profile 2018 Product Yield Target Actual Crude Run 113 100 - 102 KBD 111 3% Unit : KBD 3% KBD LPG KBD 101 99 19% 19% Gasoline KBD KBD 12% 88 12% Jet 86 KBD KBD 74 51% KBD 53% Diesel 2% 3% UCO Y2012 2013 2014 2015 2016 2017 6M2018 13% 10% Fuel Oil (TAM) (TAM) (TAM) (TAM) 2017 6M2018 TAM = Turnaround Maintenance Period GRM Performance Crude Source Diversify Crude Sourcing Unit: $/BBL 0.81 1.55 1.06 0.45 Import 0.60 0.48 0.71 0.25 0.08 69% 72% 9.05 8.34 7.51 6.96 6.38 5.88 5.99 -0.33 Domestic -0.84 -0.22 31% 28% -3.07 -5.30 2017 6M2018 2012 2013 2014 2015 2016 2017 6M2018 Market GRM Oil Hedging Inventory Gain Loss 5 Bangchak Corporation Plc.

Refinery - On-going value enhancement projects Production ramp up Production Profile New Optimal 130+ KBD & High Value added products Unit: KBD 3E Project: Efficiency, Energy and Environment 111 Debottleneck for Crude Run Capacity 130+ KBD Previous Optimal 101 110 KBD Flexible Product Yield to capture demand Cost saving energy consumption And electricity stability in refinery production processes Extended interval between each maintenance From 18 mths to 30-36 mths TAM TAM 2016 2017 2018 E 2019 E 2020 E YES-R Project: Continuous Improvements Refinery-wide improvement projects focused on Completion of Completion of Completion of CO-GEN Yield, Efficiency, Safety & Reliability Debottlenecking CCR power plant to extract the most value from the refinery Collaboration with other refinery 6 Bangchak Corporation Plc.

Marketing Sales Volume – Retail Market is the priority Marketing Margin Historical Market Share BCP Unit: THB/Litre (Retail Channel) 0.79 0.79 Market Share 15.8% 0.77 0.76 0.71 0.65 15.4% Reached 0.52 15.0% 15.1% 15.1% 16 % 14.8% Marketing Sales Volume 6,016 5,789 Unit: Million Litre 5,410 5,006 in May’18 5,005 13.8% 4,569 2,196 2,180 2,124 1,991 2,070 1,890 2,969 2012 2013 2014 2015 2016 2017 6M2018 963 3,820 3,609 3,285 2,935 3,016 2,679 2,005 Thruput per station BCP Standard AVG Major Oil 550 (K.Litre / Mo) 2012 2013 2014 2015 2016 2017 6M2018 510 450 479 Retail Sales Industrial Sales 464 451 445 432 416 414 416 392 350 348 BCP retail sales continues to outpace 302 service stations industry’s growth 250 Marketing Margin remains at a satisfactory level 150 2012 2013 2014 2015 2016 2017 *AVG Major Oil : PTT, ESSO, SHELL, CALTEX 7 Bangchak Corporation Plc.

Marketing Business – service station & non-oil roll out plan in 2H18 �������������� �������� ��� ������ ������� ������ ����� Stations ����*�+����&),( as of June 2018 ����� %&'������� ���� ���� �������� %()������� ���������������� ����������� ���� "�#�����$� ���������������� �"� ������� � ������������������������ ��!��������������������� ������ ���������� 8 Bangchak Corporation Plc.

Green Power Plant – Growth in both Capacity & Trend Operating Capacity (MWac) Currently has total capacity of 336 MW ac Wind 14 14 and target to achieve capacity of 501 MW ac by 2022 158 158 Geothermal 30 34 20 Solar 130 130 125 118 118 Solar 70 Japan 38 Wind Operating : 34 MW ac 2012 2013 2014 2015 2016 2017 6M2018 Developing: 117 MW ac EBITDA Performance Unit: Million Baht Thailand 3,088 3,005 2,572 2,559 Operating : 130 MW ac Philippines Developing : 18 MW ac Operating: 14 MW ac 1,457 Developing: 6 MW ac 1,388 422 2012 2013 2014 2015 2016 2017 6M2018 Indonesia solar Future Plan: Bring energy activities online for a better living of society Operating: 158 MW ac Developing: 24 MW ac EV Charger Solar Rooftop wind Smart Meter : Communicate and Control all Devices AI for Smart Living & Energy Efficiency Blockchain & MicroGrid Energy Trading Platform geothermal 9 Bangchak Corporation Plc.

BBGI – Expansion Plan and Potential Project Expected Shareholding Structure after IPO Public 28% ≤ 30% 42% Bio-Based Products Sales Volume Unit: Million Litres Amalgamated with KSL GI in Nov’17 BBE plant Biodiesel COD Q4/16 Ethanol 55 11 249 215 73 New Value-added products R&D 199 179 166 R&D related Biomaterials Biochemicals 142 141 PCM (phase change materials) to Yeasts 2012 2013 2014 2015 2016 2017 6M2018 10 Bangchak Corporation Plc.

Natural Resource Business – Managing E&P Portfolio Galoc Divestment “ Bangchak to hold 45% shares ” to be completed Q3/18 Nido License interests in the Philippines ~ 45% ~ 45% Minor 10% Shareholder Sold (Galoc) 12% 0.554% 15% 55% 44.56% Ivar Ivar Grevling Draugen Gjoa Yme Yme Aasen Aasen Rationale for the transaction BCP to subscribe 90% of capital increase shares from OKEA (939 million NOK) • Portfolio management • OKEA is a pure Norwegian development & production company established in 2015 • Mitigate risks • Cash from capital increase will be used to buy 2 oil producing assets from A/S Production risk (tail end of field life)  • Norske Shell (Draugen, Gjoa) OPEX increasing  ABEX overrun risks  11 Bangchak Corporation Plc.

Natural Resource Business - Lithium Americas LAC’s shareholding in Minera Exar *Expected to complete in Q4/18 Capacity 15.9% 17.0% • Phase 1: 25,000 tpa (COD 2020) • Phase 2: 25,000 tpa (COD 2022) Project Life Time: 40 years 37.5% 62.5% Production Cost: 2,300 – 2,500 USD/t Cauchari-Olaroz project (Argentina) Lithium Carbonate Price 10,000 – 14,000 USD/t (long term contract price) • Changes in shareholding in Cauchari-Olaroz is a result of the conversion of previously contributed funds • LAC and GFL enter Strategic Collaboration Agreement to explore future partnership opportunities 20,000 – 25,000 USD/t Spot price at China • SQM will still provide support to ensure the continuity of ongoing work at the Project 12 Bangchak Corporation Plc.