Bangchak Corporation Plc. Opportunity Day Q3/2018 November 14 th , - PowerPoint PPT Presentation

Bangchak Corporation Plc. Opportunity Day Q3/2018 November 14 th , 2018 1 Bangchak Corporation Plc.

Q3/18 Performance Summary

BCP Group Performance – Key Takeaways Q3/18 Performance Snapshots EBITDA Performance Refinery & Trading Crude Run at 118.82 KBD, the record high level throughout the quarter • 4,1 60 MB Total GRM 8.05 $/BBL, higher favorable crack spreads and crude cost • Inventory Gain 241 MB • 3,366 MB 149 3,216 MB Marketing 36 44 Total sales +2% YoY mainly rose from retail market, but stayed at a same • 1,542 171 level QoQ although Q3 is the low season 159 MKM remain at a satisfactory level, due to BCP’s high margin products sales • 417 793 474 468 Power Plant 509 Electricity sales stable YoY but -4% QoQ from lower seasonal irradiation • Other income from profit of selling power plants to infrastructure fund 795 MB • SG&A reduced from lower financial advisory expense • 2,198 2,142 1,929 Bio-Based Product Ethanol sales volume +334% YoY from amalgamation, +36% QoQ as BBE • resume operation after TAM and KGI started selling ENA grade ethanol -81 Biodiesel sales volume +5% YoY but -3% QoQ following oil demand low season • Q3/17 Q2/18 Q3/18 Natural Resources Refinery & Trading Marketing Sales revenue lower after Galoc oil field divestment completed • Power Plant Bio-Based Products Galoc divestment also resulted in profit from working capital restatement • Natural Resources of approx. 42 MB 3 Bangchak Corporation Plc.

EBITDA Performance - BCP Group 9M2018 Performance Compare to Target by Business Unit Unit: THB Million 200% Refinery 5,34 9 Solar Power 2,999 150% Marketing Biofuel 51% 1,712 624 29% Target 100% 100% 6% 4% 16% E&P 24 50% 0.2% Accounting EBITDA 10,51 8 Million Baht 0% 0.5 1.5 2.5 3.5 4.5 5.5 7,000 12,000 6,000 EPS EBITDA 10,000 5,000 3.00 2.91 Unit: THB Million Unit: THB/Share 8,000 4,000 6,000 Net Profit 1/ 3,000 10,518 9,805 4,137 2,000 4,009 4,000 Unit: THB Million 1,000 2,000 0 0 9M/17 9M/18 9M/17 9M/18 1/ Profit attributable to owners of the Company 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 – Record high crude run Product Yield Maximize high value product Historical record high quarterly crude run Q3/18: Lower FO - Higher UCO after resume operation following TAM completion 3% 3% 2% LPG 17% 19% 20% Gasoline 12% 14% 13% Jet Production Profile Actual Crude Run Unit: KBD 53% 52% 53% Diesel 99% 96% 95% 95% 93% 93% 92% 92% 91% 3% 3% 5% UCO 12% Fuel Oil 10% 7% 56% Q3/17 Q2/18 Q3/18 53% 118.8 Crude Sourcing 116 114 114 112 112 110 110 109 Diversify Crude Sourcing : As a long term strategy Q3/18: still maintain strategic crude sourcing portion even though crude run was higher 67 64 Import 71% 72% 78% Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 (TAM) (TAM) Domestic 29% 28% 22% Low FO yield in Q3/18 from light crude selection Q3/17 Q2/18 Q3/18 6 Bangchak Corporation Plc.

Refinery Business – Better & Stronger than ever GRM Performance Refinery EBITDA Unit: $/BBL Unit: THB Million 8.18 12.82 8.05 Unit: THB Million 4.39 2,198 2,142 Inventory Gain / Loss 1,929 1,929 0.66 1.32 Oil Hedging 0.2 1,587 Market GRM 8.81 Accounting 7.60 6.66 Operating 977 -0.39 -0.21 Q3/17 Q2/18 Q3/18 Q3/17 Q2/18 Q3/18 Crude Price & Crack Spreads ($/BBL) Q3/18 – max utilization backed by satisfactory margins 77 DTD 67 DB Higher operating EBITDA YoY from favorable crack spreads (GO, IK, 57 FO) and better QoQ benefit from narrowed DTD/DB spread 47 Better GRM supported by improvement programs Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Inventory Gain 241 MB from crude price surge in the quarter 19 IK/DB especially in September 15 15 GO/DB UNL95/DB BCP Trading EBITDA 37 MB (+421% YoY, +106% QoQ), increased 5 11 10 from higher transactions after tapping to new products and markets -2 FO/DB Share of profit from Bongkot Marine Service 9 MB -5 5 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 7 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 Total Sales Volume Total Sales Volume 334 350 330 Unit: Million Litre / Month Unit: % Portion of total sales volume in 9M/18 Retail Market 307 (monthly AVG in the quarter) 300 284 Marketing Business 259 250 Retail 54% Market 184 190 200 186 Industrial 179 (retail market portion Market 153 +5% from 9M2017) 150 117 Exports 112 (FO & UCO) 86 93 100 92 Industrial 59 25% 58 82 Market 51 47 Wholesales 50 0 Wholesales 8% Unit: Million Litre 4000 2,996 (+6%) 2,818 3000 1,643 2000 1,424 Export 785 9M17 692 1000 12% 533 473 9M18 0 Retail Industrial Wholesales Export 8

Marketing Performance – Retail market is the main priority Marketing EBITDA Net Marketing Margin Net Retail Margin Unit: THB Million Unit: Baht/Litre Net Industrial Margin 0.75 0.73 0.70 509 0.94 0.93 474 468 0.83 0.40 0.35 0.33 Q3/18 Q2/18 Q3/18 Q3/17 Q2/18 Q3/18 Q3/18 – Sales volume still on track, but margin affected by crude oil price Retail sales volume grows YoY from customer base expansion and service station sales push, but reduced QoQ from the low season Total Marketing Margin remain at a satisfactory level, due to BCP’s high margin products sales such as High Premium Diesel, Diesel B20, E85, E20 Bangchak Retail 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 Historical Jan- Aug’17 Jan- Aug’18 ∆ (Retail Channel) Market Share 43.1% 41.7% 41.7 % 45.0% 19.0% 41.7% (Retail Channel) 1 5 . 3% 15. 8 % Jul- Aug’18 40.0% 18.0% 12. 9 % 12.7% Market Share 35.0% 17.0% 16% 12. 5 % 12. 5 % 15.8% 9.4% 9. 3 % 30.0% 16.0% 15.4% 15.1% 15.1% 15.0% 1. 6 % 1. 7 % 25.0% 15.0% 4.7% 4.4% 14.5% 20.0% 14.0% 1. 8 % 1.7% 12.8% 15.0% 12.7% 13.0% 12.5% 10.0% 12.0% Thruput per station BCP Standard 2000 503 510 1800 479 (K.Litre / Mo) 500 5.0% 11.0% 1600 450 451 448 AVG Major Oil 464 1400 416 (excl. BCP) 0.0% 10.0% 1200 436 400 2014 2015 2016 2017 9M2018 1000 392 800 BCP Thruput for standard stations 600 300 continues to surpass major oil’s Numbers of 536 400 499 BCP Standard 457 460 444 Although numbers of service stations grew only marginally Service Stations 200 200 0 (Q3 thruput soften from low season) 2014 2015 2016 2017 8M2018 10 Bangchak Corporation Plc. *AVG Major Oil : PTT, ESSO, SHELL, CALTEX

Bangchak Service Station – Expansion Progression +48 New 1,154 service stations Service as of Sep 2018 Stations Sep’18 492 branches 5 43 sites Standard Type (≈75% of Retail Sales Volume) 61 1 sites COOP Type (≈25 % of Retail Sales Volume) Sep’18 38 stores *COOP Type is small sized service station owned by farmers cooperatives 11 Bangchak Corporation Plc.

Bangchak New Loyalty card and Mobile Application New Loyalty Card Bangchak Greenmiles Can be used to collect points from every products under Bangchak Brand Loyalty points can be used at outlets under Bangchak brand and leading alliance brands via Bangchak Mobile Application 12 Bangchak Corporation Plc.

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

Power Plant Business – BCPG Green Power Plant EBITDA Electricity Sales 81.58 78.24 78.12 Unit: THB Million Unit: Million kWh 12.85 14.89 13.87 1,542 JP 793 66.70 65.38 64.24 TH 417 Q3/17 Q2/18 Q3/18 3Q/17 2Q/18 3Q/18 Operating Capacity (MWac) Solar Electricity Sales : unchanged YoY: lower irradiation hours in TH but added capacity in JP  336 345 -4% QoQ: lower from entering rainy season  14 Wind 14 Gain from 2 power plant sold to infrastructure fund in JP: 795 MB 158 158 Geothermal Share of profit from Geothermal power plant : 93 MB 156 14 Share of profit from Wind power plant : 21 MB 34 34 Solar 12 130 139 130 SG&A expense reduced 26% YoY mainly from lower financial advisory expense Solar Higher FT (+0.05 THB YoY) would lead to a better earnings for existing Thailand Q3/17 Q2/18 Q3/18 projects with Adder scheme 14 Bangchak Corporation Plc.