Bangchak Corporation Plc

Bangchak Corporation Plc.

Analyst Meeting FY2018

February 25th, 2019

Bangchak Corporation Plc.

FY2018 Performance Summary

BCP Group Portfolios – FY2018 Key Takeaways

Bangchak Corporation Plc. 3

Refinery & Trading

• 2018 Crude Run meet the budget (102 KBD) and if exclude TAM days, average daily Crude Run was historical high (115 KBD)

• GRM was affected by lower UNL95 spread and lower crude run

• 1,489 MB Inventory Loss

Bio-Based ProductGreen Power Plant

Natural Resource

• Successfully recapitalize OKEA as associated company and acquired assets in Draugen & Gjøa on 30 Nov’18

• Performance contribution from Nidodiscontinued from Q3/18 onwards, after the share divestment

• Ethanol sales volume grew from full year performance realized from KSL

• Biodiesel sales volume increased from B7 mixing portion throughout the year

• Biodiesel gross margin recovered from last year, but still affected by the low price level

Capacity & Regional Expansion

• Additional 14 MW COD of Solar Power Plant

• Sold 19.3 MW power plant in Japan with 793 MB profit before tax

• Total electricity sales marginally grew 2%

Marketing

• Full year Market Share at 15.8% for 2018

• Retail market grow 5% YoY, but Industrial market soften due mainly to limited supply during TAM

• Marketing Margin still in a healthy level, backed by various high margin products

BCP Group Performance – 2018 Key Takeaways

EBITDA FY Comparison


Unit: THB Million

*Operating EBITDA = EBITDA exclude inventory gain/loss, FX Fwd, one-time items

5,608

2,463

0

2,000

4,000

6,000

2017 2018

Unit: THB Million

Net Profit 1/

1/ Profit attributable to owners of the Company

Unit: THB/Share

EPS

7,5966,268

3,9285,330

2,301

2,097

2,177

2,194

2,846

2,695

3,569

3,468

529

754

692

779

286

286

117

43

13,421

11,963

10,201

11,532

2017 2018

Refinery

Marketing

Green Power Plant

Bio-Based ProductNatural Resource

Refinery

Marketing

Green Power Plant

Bio-Based ProductNatural Resource

OperatingAccounting

4.07 1.79

Operating EBITDA stay the same level as 2017

Despite 2018 refinery’s 45 days turnaround maintenance

OperatingAccounting

Factors affecting 2018 Profit

- Inventory Loss 1,594 MB (include LCM)

- Oil Hedging Loss 442 MB

- Impairment Loss 441 MB

0%

50%

100%

150%

200%

0.5 1.5 2.5 3.5 4.5 5.5

EBITDA Performance - BCP Group


Target100%

Solar Power3,569

Marketing2,177

Refinery3,928

Biofuel692

E&P117

FY2018 Performance Compare to Target by Business Unit

Accounting EBITDA 10,201 Million Baht

Unit: THB Million

39%21%

35%

7%

1%

BCP Group Portfolios


Refinery

Marketing

Green Power Plant

Bio-basedProducts

Natural Resources& New Businesses

109

67

119 114 111102

Q1/18 Q2/18 Q3/18 Q4/18 2017 2018

Production ProfileActual Crude Run Unit: KBD

(TAM)

Refinery Business – Strong operation despite TAM


(TAM)

31% 29% 28% 24% 28% 23%

69% 71% 72% 76% 72% 77%

Q1/18 Q2/18 Q3/18 Q4/18 . 2017 2018

9% 12% 7% 12% 13% 10%

3% 3%5% 3% 2% 3%

53% 53% 53% 53% 51% 53%

12% 12% 14% 11% 12% 12%

21% 17% 19% 18% 19% 19%

3% 3% 2% 3% 3% 3%

Q1/18 Q2/18 Q3/18 Q4/18 . 2017 2018TAM

Product Yield

LPG

Gasoline

Jet

Diesel

Fuel OilUCO

Maximize high value product

Crude Sourcing

Diversify Crude Sourcing: Satisfactory GRM regardless of the changing crude sources

Domestic

Import

TAM

2018 - Record high monthly crude run 123 KBD in March’18- 85% Full Year Utilization rate, despite 45 days TAM in Q2

crude run maximization tested and proven in preparation for capacity expansion project

Operation Excellence

115*

119*

*Normalized crude run excluding TAM days

*Normalized crude run excluding TAM days

• 95% Utilization rate on nameplate capacity

• 105% Utilization rate on full complex refinery capacity

6.718.81 7.59 5.94 6.38 7.10

-0.12-0.39 -0.21 -0.40

0.25

-0.27

-0.22

4.39

0.66

-7.25

0.60

-1.23

Q1/18 Q2/18 Q3/18 Q4/18 2017 2018

6.37 12.82 8.05 (1.72) 7.23 5.61

Refinery Business – Operation still strong, affected by oil price volatility

8

44

54

64

74

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

-8

-3

2

7

12

17

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Refinery EBITDAUnit: THB MillionUnit: THB Million

GRM Performance Unit: $/BBL

Crude Price & Crack Spreads ($/BBL)

DB

DTD

GO/DB

UNL95/DB

Inventory G/L

Oil Hedging

Market GRM

1,2

79

1,9

29

2,1

40

-1,4

19

7,5

96

3,9

28

1,3

48

97

7

1,9

27

1,0

77

6,2

68

5,3

30

Q1/18 Q2/18 Q3/18 Q4/18 2017 2018

Accounting Operating

IK/DB

FO/DB

* Operating EBITDA : exclude Inventory gain/loss, One-time items, Gain/loss from FX forward contracts

EBITDA soften mainly from:

• Weaker GRM from a drop in UNL95 spread and higher crude cost

• Lower crude run during 45 days TAM in Q2/18

• 1,489 MB Inventory Loss in 2018, compared to 834 MB Inventory Gain in 2017

BCP Trading EBITDA 76 MB increased from higher transactions after tapping to new products and markets

Share of profit from Bongkot Marine Service 39 MB

2018 – Strong operation, with cushion from supporting businesses

Distribution channel – Retail market sales continues to grow as our main priority

9

259

284

307

334 342

186 179190 184

167

47 51

86

5850

92 93

82

112 111

0

50

100

150

200

250

300

350Unit: Million Litre / Month (monthly AVG in the quarter)

Total Sales Volume

Retail Market

IndustrialMarket

Wholesales

Exports(FO & UCO)

Total Sales Volume

Unit: % Portion of total sales volume in 2018

8%

25%

14%

RetailMarket

IndustrialMarket

Wholesales

Export

Marketing Business

3,820

2,196

7061,121

4,020

1,925

6221,026

0

1,000

2,000

3,000

4,000

5,000

Retail Industrial Wholesales Export

2017

2018

Unit: Million Litre

(+5%)

(retail market portion

+4% from 2017)

53%

Marketing Performance – Retail market is the main priority


Marketing EBITDA

Unit: THB Million

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

Total 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

2018 – Satisfied Margin, retail market prioritized

Net Marketing MarginUnit: Baht/Litre

1.030.93

0.83

1.050.97 0.96

0.440.35 0.40 0.46 0.43 0.41

Q1/18 Q2/18 Q3/18 Q4/18 2017 2018

0.83 0.75 0.70 0.85 0.77 0.78

73

5

50

9

46

8

46

5

2,3

59

2,2

54

-58

-77

Q1/18 Q2/18 Q3/18 Q4/18 2017 2018

Oil Business Non-oil Businesses

Net Retail Margin Net Industrial Margin

(include elimination)

43.1%41.1%

15.1%15.0% 15.1%

15.4%

15.8%

14.5%

12.7%12.8%

12.6%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

2014 2015 2016 2017 2018

444 457 460 499 527

392

436

479

510 496

416

450

464

451 446

0

200

400

600

800

1000

1200

1400

1600

1800

2000

200

300

400

500

2014 2015 2016 2017 2018

Marketing Network – Increasing Market Share & Thruput per station


Market Share (Retail Channel)

*AVG Major Oil : PTT, ESSO, SHELL, CALTEX

Thruput per station (K.Litre / Mo)

AVG Major Oil(excl. BCP)

Number of standard stations

BCP Thruput for standard stations continues to surpass major oil’s

Historical Market Share (Retail Channel)

BCP Standard

Jan-Dec’17 Jan-Dec’18 change

41.5% 41.1%

15.4% 15.8%

12.4% 12.7%

13.0% 12.6%

9.5% 9.4%

4.6% 4.3%

1.8% 1.7%

1.6% 1.7%

0.1% 0.6%

Bangchak Service Station – Expansion Progression in 2018


Standard Type 555 sites

COOP Type620 sites

*COOP Type is small sized service station owned by farmers cooperatives

(≈75% of Retail Sales Volume)

(≈25% of Retail Sales Volume)

+74New ServiceStations

service stations as of Dec 20181,175

523 branches

Dec’18

Dec’18

45 stores

+149 stores

+13 stores

R&M PerformanceRefinery and Marketing business to extract benefit of the value chain


Refinery Business earning was volatile due to market conditions and Turnaround maintenance (TAM)

Marketing Business Captures a Demand Surge During Low Oil Price Environment

R&M as a fully integrated model

profit can be optimized through business cycle

8.345.88 6.96

9.05

5.99 6.38 7.10

3.31

2.68

3.47

3.53

3.53 3.603.84

2012 2013 2014 2015 2016 2017 2018

Net MKM

Market GRM

Unit: $/BBL

Normalize Integrated Margin

$11.66 $ 8.56 $ 10.43 $ 12.58 $ 9.52 $ 9.98 $ 10.94

BCP Group Portfolios


Refinery

Marketing

Green Power Plant

Bio-basedProducts

Natural Resources& New Businesses

Power Plant Business – BCPG


130 130 130 139 13930 30 34 34 15

158 158 158 158158

14 14 14 1414

Dec'17 Mar'18 Jun'18 Sep'18 Dec'18

Operating Capacity (MWac)

Solar

Solar

Geothermal

Wind

66

4

79

3 1,5

42

57

0

2,8

46 3

,56

9

Q1/18 Q2/18 Q3/18 Q4/18 2017 2018

Green Power Plant EBITDA

Unit: THB Million

332 332 336 345 326

66 67 64 73

265 270

9 15 14 4

41 42

1Q/18 2Q/18 3Q/18 4Q/18 2017 2018

JP

TH75.2 81.6 78.1 76.9

306.4 311.8Electricity Sales

Unit: Million kWh

Solar Electricity Sales +2% YoY:

• Increase from COD of War Veteran Organization Solar project (9 MW) and Gotemba project (4 MW)

• Sold Nikaho & Nagi project in Sep’18 (total 19 MW)

Gain from 2 power plant sold to an infrastructure fund in JP: 793 MB (before tax)

Share of profit from Geothermal power plant : 164 MB

Share of profit from Wind power plant : 39 MB

SG&A expense reduced 17% YoY mainly from lower financial advisory expense

35

35 46

32 5

5

14

9

73

68

66 74

24

9 28

1

1Q/18 2Q/18 3Q/18 4Q/18 2017 2018

Ethanol B100

Bio-Based Product Business – BBGI


Bio-Based Product EBITDA

Biodiesel Performance

Sales volume growth 13% from full year B7 implementation

Gross margin better than 2017, but still pressured by price situation: 2018 Inventory loss 83 MB vs 224 MB loss in 2017, as CPO & B100 price situation stabilize in 1H18

Ethanol Performance

Sales volume growth from full year performance realized from KSL-GI

Gross margin of cassava based ethanol decreased, while margin of molasses based ethanol increased

Unit: THB Million

30

4

17

1

15

1 66

52

9

69

2

30

0

18

5

17

3

12

1

75

4

77

9

Q1/18 Q2/18 Q3/18 Q4/18 2017 2018

Accounting Operating

Biofuel Sales Volume

Unit: million litres

B5-B7B7

KGI performance included 2 mths

2018 – Steady & Strong, despite B100 price drop

20

22

24

26

28

30

32

34

36

Jan-1

7

Feb-1

7

Mar-

17

Apr-

17

May-1

7

Jun-1

7

Jul-17

Aug-1

7

Sep-1

7

Oct

-17

Nov-1

7

Dec-

17

Jan-1

8

Feb-1

8

Mar-

18

Apr-

18

May-1

8

Jun-1

8

Jul-18

Aug-1

8

Sep-1

8

Oct

-18

Nov-1

8

Dec-

18

Ethanol B100

Biofuel Price Movement Unit: Baht / litres

Source: EPPO

Full year KGI performance

realized

* Operating EBITDA : exclude Inventory gain/loss, One-time items, Gain/loss from FX forward contracts

Natural Resource Business – Petroleum Exploration & Production


OKEA AS

performance realized from 1 Dec’18 onwards, BCP currently hold 49.33% of OKEA shares

Nido Petroleum

Operating assets (Galoc) sold in July 2018

Short list buyers for non-operating / developing assets

2018 – OKEA acquisition & Galoc divestment completed

Petroleum E&P EBITDA

Unit: THB Million

68 3

6

-81

94

28

6

11

7

Q1/18 Q2/18 Q3/18 Q4/18 2017 2018

49%35%

16%Minor Shareholder

GjoaIvar Aasen

Yme

0.554% 15% 55% 44.56% 12%

DraugenGrevling

ProducingProducing Developing Developing Producing

Successfully acquired interests inin 30 Nov’18

FY2018 Financial Performance

FY2018 Highlights


• Bangchak Refinery TAM 2018 Completed as planned. (period between 30th April – 13th June: 45 Days)

• Bond Issuance 4,000 MB with 2-7 years maturity and coupon of 2.13 – 3.42% p.a. in Aug 2018

• Bond Issuance 7,000 MB with 10 years maturity and coupon of 4.04% p.a. in Dec 2018

• Established subsidiaries: BCPR Co., Ltd. (in Thailand) and BCPR Pte. Ltd. (in Singapore) to subscribe 90% of the increased capital of OKEA, with total investment approx. 3,760 MB, to acquire interests in DraugenField and Gjøa Field in Norway

• Established new subsidiaries in Thailand to invest in new Start-ups, a total of 4 new companies 1. BCV Bio-based Co., Ltd. 3. BCV Innovation Co., Ltd.2. BCV Energy Co., Ltd. 4. BCV Partnership Co., Ltd.

• Divestment of Galoc oil Field to Tamarind Galoc Pte. Ltd., valued at USD 20 million (approximately 660 MB)

BCP Consolidated: Nido Assets Impairment 412 MB

Company Only: BCPE Investment Impairment 271 MB

FY2018 Highlights


• The Acquisition of ordinary share in Lomligor Co., Ltd. Wind Power Plant Project with a capacity 8.97 MW (Total investment approx. 825 MB)

• COD of 2 solar power plant project, a co-project with the War Veterans Organization (WVO)

Total contract capacity 8.94 MW (Saraburi province 5.00 MW and Kanchanaburi province 3.94 MW)

• BCPG sold 2 solar power plant projects in japan (Nikaho, Nagi) into an infrastructure fund

Income from the sales of assets 3,046 MB

Profit from the sales of assets before tax 793 MB

• Finalization of the valuation of net assets of BCPG’s investment in Star Energy Group Holdings Pte. Ltd. which resulted in restatement of 2017 consolidated financial statement:

Asset : Investment in associated companies 242 MB

Equity : Retained Earnings 170 MB

Non-controlling interest 72 MB

• BCPR Pte. Ltd., completely subscribed for newly issued shares of OKEA AS at the total investment amount of NOK 939 million or approximately THB 3,618 million. The shares allotted to the company is equal to 49.33% of total registered shares in OKEA.

Statement of Income - Consolidated


Remark:Statement of Income FY2017 FY2018

(Restated)

Revenue 172,138 192,025

Cost of goods sold (158,596) (180,594)

Gross Profit 13,543 11,431

Investment income and dividend income 156 55

Other income 1,085 1,260

Selling and administrative expenses (7,212) (7,421)

Gain (loss) from oil hedging contract 366 (442)

Gain (loss) from FX forward contracts (225) 162

Gain (loss) on foreign exchange 889 415

Loss from impairment of assets (1,518) (441)

Share of profit of associate and JV 573 254

EBIT 7,656 5,273

Finance costs (1,452) (1,545)

Income tax expense (41) (493)

Profit for the period 6,163 3,235

Owners of the Company 5,608 2,463

Non-controlling interests 555 772

Earnings per share (Baht per Share) 4.07 1.79

(Unit: MB)

Oil hedging, FX hedging, FX Gain/Loss

Net gain resulted from managing oil price & FX risks

Revenue +12% YoY

- Refinery & Marketing : Higher average selling price per unit of finished product

- BCPT: Higher oil trading sales volume and selling price per unit

- Bio-based: Realized full year revenue from KSL Green Innovation Co.,Ltd. following business amalgamation in Q4/17

Impairment loss 441 MB

Mainly from exploration and drilling inventories impairment of Nido Petroleum 412 MB

Other Income 1,260 MB

- BCPG: Gain from selling 2 power plants into Infrastructure fund of 793 MB and insurance compensation for the damages from typhoons in Japan of 104 MB

- E&P: Realized profit from the provision of working capital settlement following the share disposal in Nido Production (Galoc) Pty. Ltd. of 78 MB

Gross Profit -16% YoY

- Inventory Loss 1,594 MB (including LCM 696 MB) in 2018, meanwhile inventory gain 652 MB in 2017

Statement of Income - Consolidated


Remark:

Share of profit of associate and JV 254 MB

- Star Energy Group Holdings Pte. Ltd 164 MB

- Petrowind Energy Inc. 39 MB

- Bongkot Marine Services 39 MB

- Ubon Bioethanol Plc. 14 MB

- OKEA AS -3 MB

*In 2017, recorded gain on purchase from Petrowind Energy Inc. 362 MB

Finance Costs (+6% YoY)

- Subsidiaries loan draw down 1,629 MB

Unit: MB(Unit: MB)

FY2018 Net Profit

The company groups’ 2018 performance declined significantly compared to 2017, as the Refinery business was affected by the year round global oil price fluctuation, especially in the last quarter which oil price plunged drastically.

(Unit: MB)(Unit: MB)(Unit: MB)

Income Tax 493 MB

- Income tax on BCPG’s profit from assets sale into infrastructure fund 136 MB

- In 2017 the company realized tax refund in the amount of 897 MB

Statement of Income FY2017 FY2018

(Restated)

Revenue 172,138 192,025

Cost of goods sold (158,596) (180,594)

Gross Profit 13,543 11,431

Investment income and dividend income 156 55

Other income 1,085 1,260

Selling and administrative expenses (7,212) (7,421)

Gain (loss) from oil hedging contract 366 (442)

Gain (loss) from FX forward contracts (225) 162

Gain (loss) on foreign exchange 889 415

Loss from impairment of assets (1,518) (441)

Share of profit of associate and JV 573 254

EBIT 7,656 5,273

Finance costs (1,452) (1,545)

Income tax expense (41) (493)

Profit for the period 6,163 3,235

Owners of the Company 5,608 2,463

Non-controlling interests 555 772

Earnings per share (Baht per Share) 4.07 1.79

(Unit: MB)

Financial Position - Consolidated


Unit: THB Million

Current Liabilities

Long Term Debt

Total Equity

Other Non Current Liabilities

(Including current portion of L/T debt)

51,890 49,538

3,470 3,083

36,857 45,460

7,5897,603

10,0166,680

4,0465,004

31 DEC 17 31 DEC 18

Liabilities & Equity

31 Dec 17 31 Dec 18

29,528 30,896

48,049 48,877

2,7343,680

15,72015,135

7,511 6,969

10,32511,813

31 DEC 17 31 DEC 18

Cash and Equivalents & Short term Investment

Other Current Assets

Inventory

PP&E

Other Non Current Assets

117,369

Assets

31 Dec 17 31 Dec 18

Account Receivable

113,869 113,869

Account Payable

Short term loan

117,396



2,734 3,680

15,720 15,135

7,511 6,969

10,325 11,813

Cash and Equivalents & ST Investment 1,445 MB

mainly from: bond issuance, net profit

Other Current Asset 946 MB mainly from oil fund subsidy

Inventory 585 MB mainly from inventory volume decrease

Account Receivables 542 MB

from lower oil products sales volume and average selling price per litre in Dec’18 compared to Dec’17

Cash and Equivalents & Short term Investment

Other Current Assets

Inventory

36,291

Current Assets

31 Dec 17 31 Dec 18

Account Receivable

37,596

7,589 7,603

10,0166,680

4,046

5,004

31 DEC 17 31 DEC 1831 Dec 17 31 Dec 18

21,65119,288

Other Current Liabilities

Account Payable

Short term loan

Current Liabilities

Account Payable 3,336 MB

Short Term loans 958 MB

mainly from BBGI 819 MB, BCPG 161 MB

31 Dec 17 31 Dec 18

CrudeVol. 3.5 MBBL

Price ≈ 64 $/BBL

Vol. 3.2 MBBL

Price ≈ 70 $/BBL

ProductVol. 312 ML

Price ≈ 16 Baht/L

Vol. 281 ML

Price ≈ 19 Baht/L



29,528 30,896

48,049 48,877

PP&E 828 MB

Increased mainly from refinery, marketing and power plant assets8,270 MB

PP&E sold in the amount of 2,605 MB, mainly from BCPG power plants sold to infrastructure fund

Depreciation for FY2018 of 4,455 MB

PP&E

Other NonCurrent Assets

77,578

Non-Current Assets

31 Dec 17 31 Dec 18

79,773

3,470 3,083

36,85745,460

31 DEC 17 SEP 1831 Dec 17 31 Dec 18

40,327

48,543

Long Term Debt

Other Non CurrentLiabilities

(Including current portion of L/T debt)

Long-term debt 8,603 MB

BCP Bond issuance 11,000 MB

BCPG & BBGI loan drawdown 1,629 MB

Loan repayment 4,231 MB

Non-Current Liabilities

Other Non Current Assets 1,367 MB

Increased mainly from the investment in OKEA AS in the amount of 112.41 M.USD (approximately 3,618 MB)

Decrease from Change in net fair value of available-for-sale investment (LAC) 2,590 MB



6,410 6,823

27,814 27,607

15,254 15,273

2,411

31 DEC 17 31 DEC 18

Equities decreased 2,352 MB (-5% YoY) mainly from

Retained Earnings 207 MB from

• FY2018 Net Profit of 2,463 MB

• Dividend paid 2,685 MB

Other component of equity 2,576 MB mainly from

• Net fair value change in available-for-sale investment (LAC) of -2,590 MB

Equity

31 Dec 17 31 Dec 18

51,89049,538

Other Components

Non-controlling Interests

Retained Earnings

Paid up capital, Share premium

and capital surplus

-165

Cash Flow - Consolidated


Beginning Cash10,106 MB

Change in Cash1,575 MB

Ending Cash11,551 MB

FX adjustment(131) MB

FY2018 Sources and Uses of Cash

Unit: THB Million

10,440

3,360

13,664

5,849

3,878

7,705

3,822

3,091 1,451 1,130

Cash From Operation

(CFO)

Funding

27,983

Sources of Cash Uses of Cash

26,407

Change in Working Capital

Debt Service - Repayment

Investment in PPE

Investment in subsidiaries, associated companies

Tax PaidSelling of PPE, Selling of investments and others

Dividend Paid

Investment in intangible assets and others

Going Forward

10,201

2018 2019

2019 Performance Target


EBITDA +30%Marketing

• Retail sales volume +9% & Maintain 2nd rank market share

• Estimated Marketing Margin at 75-85 st./litre

• Strengthen & diversify Non-oil Business

Refinery & Trading

• Crude run at 115 KBD and flexible crude mixed

• GRM to be closely managed regarding oil price & crack spread situation

• BCPT to increase trading volume to 35 MBBL

Power Plant

• Additional Capacity in pipeline

• Open for profitable deals in selling power plants to infrastructure fund

• Investment portfolio selection strategy

Bio-Based Product

• Ethanol Capacity increase +30%

• Raw material & Inventory management to adapt with price situation

Natural Resources

• Realize full year share of profit from OKEA (capacity net to BCP 10 KBD) with lower cash cost at ≈ 20 $/BBL

Accounting EBITDA (unit : THB million)

Refinery – 2019 Business Highlight


Trading Business

6.1

15.3

35

2017 2018 2019 (F)

Oil Trading VolumeUnit: MBBL

Expand coverage to offer more product varieties

Derivatives Trading

2019 crude run target at 115 KBD

Refinery Business

Operation Excellence

• 19% yield in UNL alleviate impact from collapse in its crack spread

• 2H/19 GRM to pick up due to IMO

• Max middle distillate to manage GRM

15%

66%

19%

BCP

Refinery Product Yield Comparison

Gasoline

Middle Distillates

Others

Optimization for oil price & margin situation

50

55

60

65

70

75

80

Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

DB

DTD

WTI

Adapt & optimize crude sourcing to reap most benefit according to oil price situation

Crude oil price($/BBL)

Refinery – Refinery upgrading project


StatusExpected

Completion

Continuous Catalyst Regeneration Unit (CCR) (CCR: Higher Capacity & maintenance cycle extension)

Detailed Engineering and Design Phase

Start Construction :

Civil and Steel Structure Works

2020

Debottlenecking

#1: Hydrocracker Unit (HCU) Revamping (Higher Optimal Crude Run: Distillate)

Detailed Engineering and Design Phase 2020

#2: Debottlenecking CDU & NPU & ISOU & KTU(Higher Optimal Crude Run: Light & Middle Distillate)

Under Bidding Process /

Value proposition revisit2020

3E Project Updates

Steel Structure Work on Main Piperack (PR-3302) Rebar formwork and pouring concrete of pedestal and foundation

Construction Progress

Continued as planned and expected to be completed in 2020

Refinery – IMO 2020 Preparations


Bangchak Refinery with Full FlexibilityBangchak Refinery with full flexibility to take crudes of different qualities from several supply regions

Crude Selection

Light Sweet Crude Processing (Low Fuel Oil Yield)

Refinery and Facilities (2019)

Catalyst Replacement in Kerosene Treating Unit

Maintenance for Sulfur Recovery Unit and Sulfur Tank

Blending current Fuel Oil to minimize investment to comply with IMO

17% 18%

15%13% 13%

9.6%

2013 2014 2015 2016 2017 2018

Fuel Oil Production Yield

Marketing Business – 2019 Highlight


Continue to increase market share in Retail Sales

2019 Network Expansion

+70New StationsMostly Standard size

Lubricant Non-oil (BCR) JET opportunity

Supporting business2019 Target

Sales Volume:5.7 ML/Mo

For both export market & domestic car care service

SPAR: +20 storesInthanin: +200 stores

Jet Fuel market expansion for both

domestic & export sales

160

335

2018 2019F

Retail Sales Industrial Sales

Unit: Million Litres / Month

Marketing Sales Volume Target

484

+9%Retail Sales Vol.

• Marketing Margin to be maintained at reasonable level

• Sales expansion in Direct Market

• High Margin product push

+65 Standard

+5 COOP

Bio-Based products – One of the largest bio-based product player in Thailand


3. Enhancement Program HVA 10% of Production

930,000 L/day (810,000 kg/day)

1,000,000 L/Day (330 ML/Yr)

(860,000 kg/day)

1.R&D: Cooperation with well-known technical provider

2. Set up Pilot Plant / Commercial Plant

Ethanol 1

2. M&A Ethanol plant2. New Refined Glycerin plant

1.Enhance Existing capacity

Bio-complex

Biodiesel 2

Bio-based Products 3 Food Supplement , Animal feed and Personal care4

28,000 Ton/Yr

Sales Volume Target

ML/Yr

- Ethanol Sugar based

500,000 L/Day 1,000,000 L/Day (330 ML/Yr)1.Enhance Existing capacity

350,000 L/Day 650,000 L/Day (215 ML/yr)

150,000 L/Day 150,000 L/Day (50 ML/yr) - Ethanol Cassava based

B100Sales Volume Target

ML/Yr

High Value Bio-Based Products

Investment ≈6,000 MB

1.JV Company

2. Set up Pilot Plant / Commercial Plant

Expand Biofuel Capacity

to 2.0 ML/Day

Natural Resources Business – Production profile

Production Profile Reserves (net to OKEA)

0

10

20

30

40

50

60

70

Draugen Gjoa Ivar Aasen YME Grevling Total

mmboe (as of 31 Dec 2018)

2P 2P 2P 2P 2C


0

5

10

15

20

25

30

35

2018 2019 2020 2021 2022 2023

Draugen Gjoa Ivar Aasen Yme Grevlingkboe/d

2019 CAPEX Plan


Refinery52%

Marketing11%

BCPG22%

Bio-based Products

14%

Others1%

CAPEX Plan14,000 MB

Unit: Million Baht CAPEX Plan

Refinery Maintenance Improvement Project

7,2002,5004,700

Marketing 1,600

BCPG - Existing Projects 3,100

Bio-Based Products 1,900

Strategic investment & Other 200

Total 14,000

“Belt tightening” budget acknowledged

* Excluded M&A and new businesses

THANK [email protected] Tel. +662 335 8663, 4390, 8518

www.bangchak.co.th

click Investor Relations

Disclaimer : The information contained herein is being furnished on a confidential basis for discussion purposes only and only for the use of the recipient, and may be subject to

completion or amendment through the delivery of additional documentation. Except as otherwise provided herein, this document does not constitute an offer to sell or purchase any

security or engage in any transaction. The information contained herein has been obtained from sources that Bangchak Corporation Public Company Limited (“BCP”) considers to be

reliable; however, BCP makes no representation as to, and accepts no responsibility or liability for, the accuracy or completeness of the information contained herein. Any projections,

valuations and statistical analyses contained herein have been provided to assist the recipient in the evaluation of the matters described herein; such projections, valuations and analyses

may be based on subjective assessments and assumptions and may utilize one among alternative methodologies that produce differing results; accordingly, such projections, valuations

and statistical analyses are not to be viewed as facts and should not be relied upon as an accurate representation of future events. The recipient should make an independent evaluation

and judgment with respect to the matters contained herein.

Documents

Bangchak Corporation Plc