bangchak corporation plc -...

Bangchak Corporation PLC

Opportunity Day Q3/2017

November 22, 2017

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Performance Summary

BCP Group Portfolios

Bangchak Corporation Plc. 3

Bio - Based Products ResourcesGreen Power Plant

Marketing

• Retail Sales Volume continue to grow (6%YoY)

• Net MKM was squeezed from the lag time in retail price adjustment for higher global crude oil price

Refinery

• High Crude Run at 110 KBD

• Satisfactory Market GRM at 6.66 $/BBL

• Inventory Gain of 450 MB

• Low season for solar projects in Thailand & Japan

• Geothermal plant in Indonesia started contribute to EBITDA performance

Accounting

3,580 MB

3Q17 EBITDA Performance

Operating

3,165 MB

28%

YoY

• Cycle for cassava based ethanol continue to have cost advantage

• Biodiesel performance recovered from higher sales volume and decreased stock loss

• BCPI paid for additional investment in LAC (current shareholding 16.1%)

• Nido recorded impairment cost of 1,368 MB from its withdrawal from Mid-Galocappraisal well

EBITDA Performance - BCP Group

Bangchak Corporation Plc. 41/ Profit attributable to owners of the Company

Unit: THB Million

Accounting EBITDA Q3 Comparison

1,174 993 1,316

3,8554,393

01002003004005006007008009001,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,0002,1002,2002,3002,4002,5002,6002,7002,8002,9003,0003,1003,2003,3003,4003,5003,6003,7003,8003,9004,0004,1004,2004,3004,4004,5004,6004,7004,8004,9005,000

Q3/16 Q2/17 Q3/17 9M/16 9M/17

Unit: THB Million

Net Profit 1/

2.80 3.19

0.85 0.72 0.96Unit: THB/Share

EPS

2,198

474

781

15944

1,503

607

612

-65

171

2,798 MB

3,580 MB

Q3/2017

Refinery

Marketing

Power Plant

Bio-Products

Resources

Refinery

Marketing

Power Plant

Bio-Products

Resources

Q3/2016

EBITDA Performance - BCP Group

Bangchak Corporation Plc. 51/ Profit attributable to owners of the Company

Unit: THB Million

Accounting EBITDA 9M Comparison

1,174 993 1,316

3,8554,393

01002003004005006007008009001,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,0002,1002,2002,3002,4002,5002,6002,7002,8002,9003,0003,1003,2003,3003,4003,5003,6003,7003,8003,9004,0004,1004,2004,3004,4004,5004,6004,7004,8004,9005,000

Q3/16 Q2/17 Q3/17 9M/16 9M/17

Unit: THB Million

Net Profit 1/

2.80 3.19

0.85 0.72 0.96Unit: THB/Share

EPS

5,340

1,999

2,276

397270

3,389

2,531

1,991

195252

8,302 MB10,169 MB

9M/2017

Refinery

Marketing

Power Plant

Bio-ProductsResources

Refinery

Marketing

Power Plant

Bio-Products

Resources

9M/2016




Refinery Marketing

Refinery Business – Going beyond limit


64

112 116 114 110 114 110.0353%

93% 96% 95% 92% 95% 92%

0%10%20%30%40%50%60%70%80%90%100%

0102030405060708090

100110120130140

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Crude Run

Utilization

44%

29% 22%

46%

71% 78%

Q3/16 Q2/17 Q3/17

12% 15% 10%1%

2% 3%

55% 50% 52%

11% 12% 13%

19% 17% 20%

3%2%

3%

3Q/16 2Q/17 3Q/17

TAM =Turnaround Maintenance Period

Production ProfileActual Crude Run Unit: KBD

TAM

Product Yield

LPG

Gasoline

Jet

Diesel

Fuel Oil

UCO

Maximize high value product

Crude Sourcing

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

Domestic

Import

(TAM)

2017 Target 111 KBD

Still running at an optimal high rate

Accounting GRM

5.62 6.38 6.66

0.030.63 0.200.32

-2.82

1.32

Refinery Business – Going strong


Refinery EBITDA

Unit: THB MillionUnit: THB Million

GRM Performance

Unit: $/BBL8.184.18

Inventory Gain Loss

Oil Hedging

Market GRM

5.97

Most product crack spread was higher, boosted higher Market GRM, despite widening DTD/DB

Completion of COGEN power plant help with refinery stability and lower electricity cost

Hydrocracker unit malfunction result in its operation to run sub-optimally

BCP Trading Pte. Ltd. contribute EBITDA 7 MB

Q3/17: Performance going strong

Crude Price & Crack Spreads ($/BBL)

1,5

03

91

6

2,1

98

1,3

83 1

,92

6

1,7

48

Q3/16 Q2/17 Q3/17

Accounting Operating

Q3/16 Q2/17 Q3/17

-2

0

2

4

20

40

60

80

Q3/16 Q4 Q1/17 Q2 Q3

DB DTD/DB

-5

0

5

10

15

20

Q3/16 Q4 Q1/17 Q2 Q3

GO/DB

UNL95/DB

FO/DB

Distribution channel – Retail market is our main priority


Push forward higher sales volume through the highest margin channel

Total Sales Volume

235

251259

284

307311

163

181 186 179190

161

4564 47 51

86

5755

69

92 93

82

98

0

50

100

150

200

250

300

350

Unit: Million Litre / Month

Total Sales Volume

Retail Market

Industrial Market

Wholesales

Exports

Unit: % Portion of total sales volume in 3Q2017

9%

26%

50%

16%

RetailMarket

IndustrialMarket

Wholesales

Export

Marketing Business

934 ML

483 ML

170 ML

295 ML

Marketing Performance – Retail market is our main priority


Marketing EBITDA

Unit: THB MillionUnit: THB Million6

07

66

9

47

460

9 67

4

45

5

Q3/16 Q2/17 Q3/17

Accounting Operating

Net Marketing Margin

Unit: Baht/Litre

1.04 1.060.94

0.38 0.430.33

Q3/16 Q2/17 Q3/17

Net Retail Margin Net Industrial Margin

0.80 0.83

0.73

Retail sales volume grew 6% YoY, but declined 2% QoQ due to rainy season

Industrial sales volume declined from the higher sales push through retail market, flooding in some areas, and temporary intense price competition

Marketing Margin declined from the lag time of retail price adjustment when global crude oil price increase

Q3/17: Slight decline from seasonal effect

Marketing Network – Increasing Market Share & Thruput per station


Market Share (Retail Channel)

Jan-Sep’16 Jan-Sep’17 ∆

37.0% 36.5%

15.0% 15.3%

12.9% 12.5%

12.9% 13.0%

5.7% 5.1%

5.0% 4.7%

1.8% 1.8%

7.9% 9.4%

1.6% 1.6%

Unit: K.Litre/Station/ Month

Thruput per station

15.3%

348392

435479

504

416 416450 464 452

494528 540

573 570

2013 2014 2015 2016 9M2017

BCP Standard AVG Major Oil BCP COCO

Several initiatives to boost BCP’s thruput:

optimize current network partnership with SPAR new premium products etc.

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

Bangchak Service Station - Greenovative Experience


Standard Type 481 sites

COOP Type 612 sites

+35 New Service Stations

9M2017

service stations as of September 20171,093

Bangchak Non-Oil Business – Progression


421

9M17

+50 branches

branches

branches

9M17

+19 branches

25 stores

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 6.70

3.31

2.68

3.47

3.53

3.533.69

2012 2013 2014 2015 2016 9M2017

Net MKM

Market GRM

Unit: $/BBL

Normalize Integrated Margin

$11.66 $ 8.56 $ 10.43 $ 12.58 $ 9.52 $ 10.39




Refinery Marketing

Green Power Plant – Growing Capacity


Green Power Plant EBITDAUnit: THB Million

6168 65

8

1413

Q3/16 Q2/17 Q3/17

Thailand Japan

Electricity Sales of solar power plant

Q3/17: Expanding coverage as planned

Wind

PPA: Philippines 14.4 MW (net to BCPG)

Low season led to less wind speed at project site

PPA: Thailand 130 MW / Japan 30 MW

QoQ lower performance from low season (rainy season) both in TH and JP led to lower irradiation

YoY higher performance from operation commencement of various projects both in TH and JP

Solar

Geothermal

PPA: Indonesia 182 MW (net to BCPG)

Share of profit from Jan – Sep’17 was recorded in Q3/17 altogether

Unit: Million kWh

61

2

78

9

78

1Q3/16 Q2/17 Q3/17

Accounting

Bio-Based Products – Biodiesel business back on good track


Bio-Based Products EBITDA

Unit: THB MillionUnit: THB Million

-60

93

8

88 68

121

41

41 74

74

-3

-3

9

917

17

-70

-20

30

80

130

180

230

Q3/17

Acc

ounting

Opera

ting

Biodiesel Bangchak BioEthanol Ubon BioEthanol

Q2/17Q3/16

-65

8959

139159

213

Performance recovered from higher sales volume

and decreased inventory loss

B7 mixing portion throughout all quarter

Biodiesel

452

669 689

478

672 682

Q3/16 Q2/17 Q3/17

Daily Production Sales Volume

Biodiesel Plant: Production and Sales Volume

Unit: K. Litre per day

B7B5-B7

B3-B5

127

91

129118

94

121

Q1/17 Q2/17 Q3/17

Daily Production Sales Volume

BBE Ethanol Plant Production and Sales Volume

Unit: K. Litre per day

Ethanol

Both plants benefit from declining cassava price

while ethanol price increased

0.0

0.5

1.0

1.5

2.0

2.5

Resources Business


o EBITDA contribution positive at 44 MB

o Galoc oil filed uptime was 99.98%

o Nido Sales Volume was lower corresponding to the Natural-Decline Production Curve

o Impairment cost of 1,368 MB

3Q/17: E&P Target

G7 impairment of USD 40 million (Mid Galoc Area)

o G7 (appraisal well) showed lower than expected resource

o Not Economic to develop

(based on oil price at 55-65 $/BBL)

o Impair all G7 (Mid Galoc) value in the book

Lithium Mining Business Progression

3Q/17: Cauchari-Olaroz project in progress

o BCPI signed offtake agreement for 20% of LAC’s right in Lithium produced from Cauchari-Olaroz (Phase I) for 20 years

o Unrealized profit from holding LAC shares as asset available for sale booked in Other comprehensive income of 1,684 MB for 9M2017

o As of 8 Nov 2017, LAC made 1-for-5 reverse stock split. Numbers of BCPI shares in LAC changed from 70.28 M shares to 14.06 M shares, % of shareholding is unchanged at 16.1%

LAC share price movement (adjusted for reverse stock split effect)

BCP invested 37 [email protected] CAD/Share

Financial Performance

3Q/17 Quarterly Remarks – From Financial Aspects


BCPG Plc.

Invest 356 MUSD in Star Energy group

Loan draw down of 8,851 MB for foreign operations

2017 Interim dividend paid of 299 MB

Loss from FX forward contract of 255 MB

BBGI Co., Ltd.

Amalgamation with KSLGI completed in 31 Oct’17 (BCP holds 60% in the amalgamated company) effect of the amalgamation will be realized in 4Q/17 performance for 2 months

BIO

Bangchak Corporation Plc.

Gross Profit increased from Inventory gain of 450 MB (company only)

Assets growth by 5,572 MB compared to 31 Dec’16

Corporate Income Tax return of 671 MB Tax refund for the year 2009 and 2010

3Q/17 Quarterly Remarks – From Financial Aspects


BCP Innovation Pte. Ltd.

Increased registered share capital by 1,100 MB

Invested 32 MUSD to increase shareholding in Lithium America Corp. (LAC) from 5.2% to 16.1% (2nd largest shareholder)

BCP Energy International Pte. Ltd.

Increased registered share capital by 37 MB

Key Financial Performance - Consolidated


Gross Profit

Mainly increased from Refinery 450 MB inventory gain compare to 35 MB and 1,096 MB inventory loss in Q3/16 and Q2/17 respectively

Remark:

Other Income

Mainly increased from a compensation from construction project of 141 MB.

(Q2/2017 record a gain from the reversal of provisions from SunEdison acquisition of 140 MB)

SG&A

Increased from expenses in Non-oil business, HR-related, financial advisory expenses, and higher depreciation

Loss on FX forward contracts

Mainly from BCPG forward contracts resulting from THB appreciation

Gain on Foreign Exchange

Mainly from the company group’s foreign currency liability, resulting in a gain as THB appreciated

Statement of Income3Q16

(Restated)2Q17 3Q17

Revenue 36,686 42,828 39,009

Cost of goods sold (33,780) (40,465) (35,450)

Gross Profit 2,906 2,363 3,559

Investment income and dividend income 51 44 45

Other income 62 236 238

Selling and administrative expenses (1,473) (1,648) (1,785)

Gain (loss) from oil hedging contract 11 233 86

Gain (loss) from FX forward contracts 13 (19) (259)

Gain on foreign exchange 156 92 299

Loss from impairment of assets 3 19 (1,358)

Share of profit of associate and joint venture (1) 54 420

EBIT 1,728 1,375 1,244

Finance costs (369) (339) (379)

Income tax expense (232) 109 630

Profit for the period 1,127 1,145 1,495

Owners of the Company 1,174 993 1,316

Non-controlling interests (47) 153 179

Earnings per share (Baht per Share) 0.85 0.72 0.96

Unit: THB Million

Key Financial Performance - Consolidated


Remark:

Share of Profit from associates and JV

Higher from better performance of Ubon Bio Ethanol, and BCPG recent acquisition in Star Energy Group Holding Pte. Ltd

Unit: THB Million

Loss from Impairment of assets

Mainly from Nido’s impairment from the exploration and appraisal expenses, as a result of its withdrawal from Mid-Galoc area

Income Tax revenue

Tax expense was credited from 2009 and 2010 income tax return of 671 MB

Statement of Income3Q16

(Restated)2Q17 3Q17

Revenue 36,686 42,828 39,009

Cost of goods sold (33,780) (40,465) (35,450)

Gross Profit 2,906 2,363 3,559

Investment income and dividend income 51 44 45

Other income 62 236 238

Selling and administrative expenses (1,473) (1,648) (1,785)

Gain (loss) from oil hedging contract 11 233 86

Gain (loss) from FX forward contracts 13 (19) (259)

Gain on foreign exchange 156 92 299

Loss from impairment of assets 3 19 (1,358)

Share of profit of associate and joint venture (1) 54 420

EBIT 1,728 1,375 1,244

Finance costs (369) (339) (379)

Income tax expense (232) 109 630

Profit for the period 1,127 1,145 1,495

Owners of the Company 1,174 993 1,316

Non-controlling interests (47) 153 179

Earnings per share (Baht per Share) 0.85 0.72 0.96

Key Financial Position - Consolidated

Bangchak Corporation Plc.tment 24

43,909 47,075

3,353 3,303

32,14337,345

6,1684,2868,7668,3137,4447,033

31 D EC 16 30 SEP 17

Liabilities & Equity

31 Dec 16 30 Sep 17

24Bangchak Corporation Plc

Assets:

Cash and Equivalents decreased 9,968 MBmainly from the change in working capital, cash paid for asset / acquisition, debt repayment,dividend payment

Unit: THB Million

11,17026,722

46,462

45,614

2,562

2,17414,560

15,5346,022

5,77221,006

11,539

31 D EC 16 30 SEP 17

Cash and Equivalents & Short term Investment

Other Current Assets

Inventory

PP&E

Other Non Current Assets

101,783

Assets

31 Dec 16 30 Sep 17

PP&E decreased 848 MB mainly from Refinery machinery, marketing, and office equipment increased

by THB 2,194million

Purchased other assets at 616 MB FX differences on translating financial statement resulting in

asset lower by 226 MB Depreciation for 9M/17 3,498 MB

Inventory increased by 973 MB

mainly due to petroleum products inventories,

of which its average cost rose

Trade Account Receivable decreased 250 MB from lower finished product sales volume & price

Account Receivable

107,355101,783

Other Non Current Assets increased 15,552 MB mainly from

Investment in Associates and JV increased 13,349 MB

Investment in LAC increased by 1,099 MB, and net fair value increase in LAC investment of 1,664 MB

Intangible Assets decreased 1,289 MB mainly from Mid-Galoc oil field impairment

107,355

Current Liabilities

Long Term Debt

Total Equity

Other Non Current Liabilities

(Including current portion of L/T debt)

Account Payable

Short term loan

Key Financial Position - Consolidated

Bangchak Corporation Plc. 2525Bangchak Corporation Plc

Liabilities:

Short term loan decreased 411 MB mainly from

Estimate of short term loan decreased 502 MB from BCPG

deferred payment settlement in relation with solar japan

acquisition

Account Payable decrease 454 MB from

trade payables in Sep 17 was paid within the month,

although purchase volume was higher than in Dec’16

Other Current Liabilities decreased 1,882 MB mainly from

Accrued expenses reduced 464 MB

Paid for construction expense payable 322 MB

BCPG paid remaining liabilities from SunEdison acquisition

Long-term debt increased 4,791 MB

Debt repayment 3,545 MB

Loan drawdown of BCPG & BBF 9,031 MB

Decreased from effect of THB appreciation 494 MB

Equity:

Equities increased mainly from

Retained Earnings rose 4,393 MB from 9M/17 Net Profit

Dividend Payment 2,822 MB

Other component of equity increased by 1,435 MB fromchange of FX translation differences for foreign operations and fair value increase in available-for-sale investment

43,909 47,075

3,353 3,303

32,14337,345

6,1684,2868,7668,3137,4447,033

31 D EC 16 30 SEP 17

Liabilities & Equity

31 Dec 16 30 Sep 17

Unit: THB Million

11,17026,722

46,462

45,614

2,562

2,17414,560

15,5346,022

5,77221,006

11,539

31 D EC 16 30 SEP 17

Cash and Equivalents & Short term Investment

Other Current Assets

Inventory

PP&E

Other Non Current Assets

101,783

Assets

31 Dec 16 30 Sep 17

Account Receivable

107,355101,783

107,355

Other Current Liabilities

Long Term Debt

Total Equity

Other Non Current Liabilities

(Including current portion of L/T debt)

Account Payable

Short term loan

Cash Flow - Consolidated


Beginning Cash19,287 MB

Change in Cash(9,756 MB)

Ending Cash9,319 MB

FX adjustment(211) MB

9,75813,394

8,959 3,198

500 1,989

185 535

4,340

3,222 2,480

Cash From Operation

(CFO)

Selling of PPE

Funding

19,402

Sources of Cash Uses of Cash

29,158

Q3/17 Sources and Uses of Cash

Unit: THB Million

Investment in intangible & other assets

Investment in subsidiaries & JV

Change in working cap

ST Investment

Dividend & Interest Received and others

Debt Service

Investment in PPE

Dividend Paid

Oil Market Outlook

Surplus stock reduction moderates, higher U.S. oil production looming

28

Continue non-OPEC supply growth keeps call on OPEC near 32.5 MBD in 2018Big closer in gap between total OECD stock & 5yrs-Avg. with

strong demand and producer cut production

Source: Argus Media, Euroilstock, IEA, METI, OPEC and EIA – Oct’17

Better OPEC cuts compliance

Oil Production cuts [KBD]

Active U.S. rig start to decline

U.S. Oil Rig count

U.S. Oil Production[Right Axis]

Source: IEA – Oct’17Source: Baker Hughes and EIA

Source: IEA – Oct’17

57.38 58.05 59.60

6.81 6.91 7.04

32.80

96.13 97.71 99.12

30

40

50

60

70

80

90

100

2016 2017 2018

OPEC Supply OPEC NGLs

Non-OPEC Supply Total Demand

Wo

rld

oil

bal

ance

(M

BD

)Call on OPEC 32.48 MBD

Call on OPEC 32.75 MBD

+1.6% +1.4%

(+2.7%)(+1.2%)

0

20

40

60

80

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17

$/BBL

Iran nuclear deal

reached

Greece Debt Default

U.S. Presidential

election

U.S. supply concern

29

Crude Oil Price Outlook: Tighter crude stock surplus support pricesbut oil prices capped by rising of U.S. production

Rig count drop

Upstream investment cut

China’s stock rout

No OPEC production ceiling

agreement

Iran’s sanction lifted

Possible of OPEC and Non-OPEC coordination

FED rate hike

Dubai AVG: Q1/17 = 53.0 Q2/17 = 49.7 Q3/17 = 50.4 Q4/17 (F) = 57.8

FY2016 = 41.4 $/BBL FY2017 (F) = 52.7 $/BBL FY2018 (F) = 56.5 $/BBL

Hurricane Season

OPEC and non-OPEC Deal

Fed Rate Hike

Expectation

• OPEC meeting in late-November likely to extent cut to lower excess crude inventories.

• Firm refining margins to support crude oil demand.

• Kurdistan-Iraq tension and security concerns

• Rising US-Iran tensions on compliance over nuclear deal

• U.S. oil supply continue to grow

Trump inauguration

[20 Jan]

OPEC meeting[30 Nov]

Tension in Iraq

Production cut begins

Focus on Q4-17:

Extension cut meeting

[May]

Summer demand

• Global demand growth due to strong economics.

• Expect OPEC will extent cut to end of 2018. Saudi Aramco IPO support.

• Surplus inventory will moderate decrease

• Non-OPEC supply growth, lead by U.S. , Canada & Brazil

• Libya and Nigeria production increase.

Market Highlights in 2018:

18.8

14.411.6

14.5 14.714.2

16.1 14.6

18.3 14.8

14.9

14.6

9.7

10.510.9 11.5 11.8 11.3

13.812.2

13.6

10.612.3

12.5

-5.2

-8.7

-4.3-2.5 -3.2

-1.8 -1.4 -2.2

-5.0 -5.2-2.1

-2.5

-15

-10

-5

0

5

10

15

20

25

Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 2015 2016 2017 2018

ULG95 - Dubai

Gas oil 0.05%S - Dubai

Fuel Oil - Dubai

30

Singapore Product Cracks Spread Outlook

• High margins incentivize lower maintenance in Q4.

• Higher oil products export from China after refiners receive an unusual fifth round of export quotas and new refinery startup.

• Seasonal downward gasoline demand in winter.

• Winter stockpiling activities should protect downside risk of gasoil cracks

• Limited fuel oil arbitrage from West to Asia and tighter fuel oil in Asia on higher demand from bunkering sector support fuel oil crack.

Market Highlights in 2018:

• The incremental demand growth in Asia will offset supply increase from the recently commissioned refinery projects.

• Continuation of relative light end support compared to middle distillates on still strong demand.

• Supply side still driving fuel oil tightness

Focus on Q4-17:

Softer refining margins in Q4 from earlier strong in Q3 but remain supported by winter demand

$/BBL

Going Forward

Refinery - On-going value enhancement projects


YES-RProject

3E Project

Y2016 Y2017 Y2018 Y2019 Y2020

In operation

(Aug’17)

EPC Award(Q1/18)

Completion

EPC Award(Q1/18)

Completion

FEED & ITB Completion

(Q2/17)

EPC AwardCompletion

Co-Gen #3 (≈12 MW)

1st Provisional Acceptance and under

commission process (Progress: 99%)

Benefit ≈0.20 $/bbl

Continuous Catalyst Regeneration Unit (CCR)

(CCR: Higher Capacity & maintenance cycle extension)

Prepare for Bid Evaluation

Debottlenecking

#1: Hydrocracker Unit (HCU) Revamping

(Higher Optimal Crude Run: Distillate)

Prepare for Bid Evaluation

#2: Debottlenecking CDU & NPU & ISOU & KTU

(Higher Optimal Crude Run: Light & Middle Distillate)

Front end engineering design & invitation to bid

YES-R Project:

Continuous Improvements that focused on reliability, enhanced efficiency, safety, and yield improvement

Automation & Digitalization

Project Timeline

3Q/17 Refinery actual Power usage :

• 90% self reliance• 10% purchased from MEA

COGEN in operation - Performance Recap

Refinery – 2018 Turnaround Maintenance Plan


Bangchak Refinery TAM 2018 Plan Period: 45 days

Project Tie-in:

• Continuous Catalyst Regeneration Unit (CCR)• Hydrocracker Unit (HCU)• Crude Distillation Unit (CDU) 3

Expected Utilization Rate 85%

Retail & Non-oil Networks – Current Network Optimization


To improve customer experience and advocacy, BCP focus on network coverage,

service and non oil benefit with the concept of “Greenovative Experience”

Service Station Design - Flagship Service station- Environmental friendly- Custom design for each segment- Existing service stations renovation

Competency Improvement (Customized by Sites)

Current Network Optimization- Loyalty program improvement- High quality & Environmental friendly products- Standardized & Fast service

Retail Networks – Geographical expansion


Metro & Central Cluster

ie. BKK and Vicinity, Ayutthaya, Nakornsawan,

Samut sakorn

East Cluster

ie. Rayong, Chonburi

South Clusterie. Suratthani, Phuket, Songkha, Trang, Krabi

North East Cluster

ie. Khonkaen, Udonthani, Nakornrachasrima

North Cluster

ie. Chiangmai, Chiangrai, Lampang

Network expansion as a cluster

Create brand impact

Improve management efficiency

Fulfilling Bangchakservice station in main roads

BCP Bio-based Business Unit – Amalgamation completed


Current shareholding structure

BBGITimeline

31 Oct’ 2017 Q4/2017 End 2018

Amalgamation Completed

Amalgamated company performance realization

(2 months)

BBGI IPO

BBGI – Expansion Plan (Tentative Target)


Current Business

Biodiesel business

Capacity 810,000 Lt./d

PCM plant (PCM: Phase change material)

Refined Glycerin

Ethanol business

Capacity 150,000 Lt./dDebottleneck (45->50 ML/Yr)

Ethanol business

Capacity 350,000 Lt./d

KSLGI-BoPloy Capacity Expansion (200->300 kL/D)

KSLGI-Nampong Capacity Expansion (150->350 kL/D)

New Business

Astaxanthin

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Lithium Americas – Progress Update


Cauchari-Olaroz project timeline

Complete Preliminary Feasibility Study

Jun’18

THANK [email protected] Tel. +662 335 4390, 365 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.

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