The Bangchak Petroleum Pcl.

2

2536

PM Prem’s Administration transferred military-owned oil refinery business (Bangchak) once managed by Panama’s company to the hands of Thais

1 April BCP established

Went public

The Bangchak PetroleumPcl.

ปี�2538 2540 2546 25482528

New refinery unit (REBUILT)capable of 120,000barrels/day built

Owned more than 1,000 stations, 500 of which are community stations

Marketing activities for social benefits

Adopted PQI system & aimed for

leader in alternative energy

3

Shareholders’ Structure

5 2005As of th July

73.8%73.8%

18.5%18.5%7.7%7.7%

4

Business Lines

MARKETING BUSINESS 60( %)

REFINERY BUSINESSREFINERY BUSINESS (1 0 0 %) (1 0 0 %)

HydroskimmingRefinery

120

KBD

I NDUSTRI AL I NDUSTRI ALMARKETINGMARKETING

+

1,149 Service Station 1,149 Service Station (( - 544Include CO OP station) - 544Include CO OP station)

RETAIL RETAIL MARKETINGMARKETING

PTT Plc.30( %)

Wholesale C ustomers(1 0 %)

5

Revenue Structure Oil’s Products

Retail Customer (Service Stations)

PTT Plc.

IndustrialCustomers

WholesaleCustomers

Non- Oil’s Products

92

%8%

• BCP’S sales volume is 2,213 M.Lt. from total market of 26,728 M.Lt

• Market share 8% of total market and ranked No.6 of the industry

• 1,149 Service Stations (include 544 CO-OP stations)

Current Situation

OOOOOO

7

MACRO ANALYSIS

Social : Awareness in environmental concern, clean energy and safetyP

ELT

olitical : Government s upportand oi l p rice control policy conomics : Fluctuating oil price & exchange rate

Inflation rate, interest rate and CPI GDP and auto industry’s growth rate

egal : Safety and environment-related laws Gas station business-related lawsechnology : Technology advancement in alternative energy

Technology advancement in auto industry

8

INDUSTRY ANALYSIS

Internal Rivalry :- One Stop ServiceLocation

Promotion & Ads.

Substitute Goods

NGVs, BioFuel ,Mass Transit ,Other Natural

Energy

Suppliers Limited Source of Ethanol & Crude Oil

CustomersCustomers’ Mindset

Barrier of New Entry Large Amount of Capital

HIGH

HIGH

ModerateHIGH

Moderate

9

• Governmentsupport• Large size ofcapital• Strong p artner :

-7 eleven

COMPETITOR ANALYSIS

Superior Inferior

• -CompanyOwned , Company Operate

• Unstable q uality

• Concentrates only

in major areas• High Product ion Tech.

• Large size of Capital

• Unstable q uality

10

COMPETITOR ANALYSIS

Superior Inferior• Promotion• Large size ofcapital• Strong

Partner :Lotus

• Unstable Quality

• Slow movement• Large size of

capital• Unstable q uality• Slow movement

• Large size ofcapital• High Technology

• Country of origin

11

COMPANY ANALYSISStrengths1 .“ Leader of Bio Fuel” image2. 1149, Service Stations OO OOOOOOOOO(2 )3. Brand awareness for sOOOOOO e nvioronmental concern4. Up and dOOO-s treamb usiness:Refi nery andServi ce Stati o ns5.Hydroskimming ProcessWeaknesses

1.Lack of Financial Source2 .Unstable q uality of services

3 . Lack of c ommunication to consumers4 . Poor Location

5. No Cracking Unit

12

COMPANY ANALYSISOpportunity1.The cutout of Diesel 9 5 2007in2.Mass Transportation d oes O ot c over m aj or areas 3.Rising O nterest in Bio Fuel4 . Hi ghTechnol ogy

Threat• Inflation Rate

• Government l aw: Limited Time• Lack of Ethanol

• Uncertainty of Oil Price

Market Analysis and customer behavior

• Diesel Oil is the most consumed product in market

Demand of total market

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2544 2545 2546 2547 2548year

Volumn (ML)

Diesel Benzene Gasohol Bio Dieselที่��มา : กรมธุ�รก�จพลั�งงาน

• Substitute Energy is replacing diesel, and benzene oils in next few years

Main factors for changing demand and consumption

1 Oil Price 2 . Car

Consumption3 . GDP, Inflation Rate , Interest Rate, and Economy4 . Laws and policies of government 5. Substitute Energy such as NGV

Demand Analysis

Growth 4.6 % 6.0% 7.6% 8.4% -2.1 %

0

5,000

10,000

15,000

20,000

25,000

30,000

2546 2547 2548 2549 2550 2551year

Volume (ML)

Diesel Benzene Gasohol Bio Diesel

Growth 7.6% 8.4% -2.1% -0.8% -1.1% -1.1%

ที่��มา : กรมธุ�รก�จพลั�งงาน

Demand is expected to decrease in next few years Due to..

• Oil price in world market rises higher• Customers develop energy - saving behavior• The substitute fuels such as NGV, LPG, Hydrogen ,etc.• New mass transportation• Economics may slow down ,but interest rate may rise• Car users switch to more economically-sized car.

Demand Forecasting 2549-2551Demand of Total market

• Although total market size decreased, BCP’s growth was apparent due to its enthusiasm in searching for substitute energy such as Gasohol, Bio-Diesel.

• BCP is the first and only company selling Gasohol 91

Sales Volume of BCP on 44-48

0

500

1,000

1,500

2,000

2,500

2544 2545 2546 2547 2548Year

Volume (ML)

Diesel Benzene 95 Benzene 91

Gasohol 95 Gasohol 91 Bio Diesel

ที่��มา : กรมธุ�รก�จพลั�งงาน

Bangchak’s Sales Analysis

Growth 3.4 % 5.2% -0.9% 8.0% -0.1 % 7.00%

7.50%

8.00%

8.50%

9.00%

2544 2545 2546 2547 2548

BCP share

ML Quantity of Gasohol sold

2547254725462546 25482548Gasoh

ol S

ale

Vol.

Gasoh

ol S

ale

Vol.2 ML

39 ML

242 ML

1209

664

545

39

170

77

17

203

TotalTotal 2935, 2935,

The Bangchak Petroleum Plc.The Bangchak Petroleum Plc.The Bangchak Petroleum Plc.The Bangchak Petroleum Plc.

Number of stations selling Gasohol

Service stations and sales

ที่��มา : กรมธุ�รก�จพลั�งงาน

The Bangchak Petroleum Plc.The Bangchak Petroleum Plc.The Bangchak Petroleum Plc.The Bangchak Petroleum Plc.

Sales of Benzene oilSales of Benzene oil Sales GSH / Market shareSales GSH / Market share

Sales(M.L.)

Market share (%)

257.5 38.2

242 35.8

137 20.4

14.9 2.2

10.6 1.6

6.9 1.0

3.9 0.6

1.3 0.2

อื่��นๆ 0.3 0.0

Total 65732, .M.L.

Total 675 M.L.ที่��มา: สำ�านักการค้�าและสำ�ารองนั��ามนัเชื้��อเพล�ง

2548

Market Growth rate High

Relative Share High

Gasohol

Benzene

Diesel

Bio-diesel

Mini-mart/

non-oil

Boston Consultant Group: BCG

oo Cash cow : Maintain & RebrandingCash cow : Maintain & Rebranding

o Star : o Star : Upgrading & Rebranding Upgrading & RebrandingGrowth strategiesGrowth strategies

o o Question markQuestion mark : New marketing concept : New marketing concept

o Dog : Diversify / Divestment o Dog : Diversify / Divestment

Relative Share Low

Market Growth rate Low

18 25– year : Young Driver

STP strategy: Market Segmentation

Segmentation by age

26 35– year : Mature Driver

3645 year : Middle - aged Driver

46 year up : Senior Driver

STP Strategy : Target group

Primary Existing Customer 26-35 year, environment conscious, Income 25,000-40,000 baht, just married

Secondary Young driver 18-25 year,

environment conscious, Income

10,000-25,000 baht, Student or

Graduated

Customer Satisfaction Level:

High

Service level: high

Service level: low

Customer Satisfaction Level:

Highที่��มา บร�ษั�ที่ เอื่คอื่ร�น มาร�เก�ตต� ง แอื่นด์� ร�เสิ�ร�ช คอื่นซั�ลัแที่นสิ� จ&าก�ด์

STP strategy: Market Positioning

VISIONTo become a leading Thai

company specializing in energy exploitation that generates

sustainable profit in long run, while maintains concern for

environment and society by our professional management, good governance and highly capable

human resource.

MISSION

To become the leader of substitute energy

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2546 2547 2548 2549 2550 2551Year

Volume(ML)

Diesel Benzene 95 Benzene 91Gasohol 91 Gasohol 95 Bio Diesel

• BCP has been encouraging researches on substitute energy

• Substitute energy is the potential market in the

future.

• BCP’s sales volume is expected to increase continuously.

ที่��มา : กรมธุ�รก�จพลั�งงาน

Bangchak’s sales Forecast

Growth -0.9% 8.% -0.1% 11.4% 11.7% 13.0%

• Aims to become the leader of Gasohol market.

•Change all stations to offer Gasohol service.

• Expected share dramatically grows during in 2549-2551

Bangchak’s sales Forecast (cont)

7%

8%

9%

10%

11%

12%

13%

14%

2544 2545 2546 2547 2548 2549 2550 2551

BCP share in total market

0%

10%

20%

30%

40%

50%

60%

70%

2544 2545 2546 2547 2548 2549 2550 2551

BCP share inBio Fuelmarket

1,100 stations

ปตที่30%

บางจาก24%

เชื้ลล�20%

เอสำโ ซ่!15%

ค้าลเที่"กซ่�8%

เจ"ที่2%

อ�� นัๆ1%

Target share 2549

Action plan

Improve Gasohol 9195, by

changing their additives

Oil quality improvement

Improve Biodiesel B5

Improve Biodiesel B100

Action plan

- Mobile Training

Train service staffs for stable quality of service

Service quality improvement

Intelligent purchase system

Action Plan

Part of Repositioning strategy, focusing on stations inbound and suburb

Renovate the atmosphere of stations

“Garden Station ”Project

“Relax Spot ”Project

Action Plan

-Resume last year’s project -Focus on main roads in outbound areas

-Hold special activities on occasions such as new year, Songkran ,etc.

Action Plan

- Puff & Pie

- Golden Place

Partner collaboration

Improve Non-Oil business

Action Plan

- Green Club

Apply CRM method

Sales Promotion

- ใบจากเพ��มค(า

“Bangchak Boy ”Project

Action Plan

1. Reposition brand emphasizing continuous development and more intimate customer relation

2. Present 3 key messages about Bangchak which are…

“Bangchak Boy ”Project

Action Plan

“Thai-owned”

“Environmental concern”

“quality oil and

service”

“Bangchak Boy ”Project

Action Plan

เร��องเล!าเชื้�านั��, ถึ%งล&กถึ%งค้นั, ชื้�งร�อยชื้�งล�านั, เจาะใจ, itv hotnews

Green Wave, จสำ 100, EZ FM

ไที่ยรฐ Pantip.com

“Bangchak Boy ”Project

Action PlanIncrease visibility by hanging “Bangchak Boy” balloon

“One Park from Home ” Project

Action Plan

Apply the concept of Wal-mart Neighborhood Market to “Baichak” convenience store, aiming for value-added

“One Park from Home ” Project

Action PlanBCP becomes customers’ “One Park from Home”, saving time for further shopping at supermarkets

Action Plan

Green Wave, จสำ 100, EZ FM

“One Park from Home ” Project

เร��องเล!าเชื้�านั��, ถึ%งล&กถึ%งค้นั, ชื้�งร�อยชื้�งล�านั, เจาะใจ, itv hotnews

Organization, Implementation and Control

Period Monitoring/Control

Weekly •Progress in sales volume as planned

Monthly •Set monthly meeting for all sections.•Report progress of action plan, KPI and abnormality report.•Monitor market share/sales volume by product. •Check competitor’s action and strategies.

Quarterly •Conduct customer survey at only BCP gas stations.•Monitor market share/sales volume. •Launch new strategies (if necessary)

Yearly •Conduct consumer survey for the whole market.•Monitor market share/sales volume •Make market forecast and sales plan for next year.

Marketing division

Bio-Fuel Diesel/Benzene Non-Oil Customer Service

Profit & Loss 2006

2546 2547 2548e 2549f

Sales Revenue 61,595 79,848 85,868 89,560 Est sales growth 1.7%/Price 10%Cost of Good Sold 59,170 74,815 80,330 84,346 Est 94% of salesGross Profit 2,425 5,033 5,538 5,214 Other Expense 3,724 2,397 2,613 2,740 Est 3% of salesEBIT -1,299 2,636 2,925 2,474

Assets 28,591 34,370 34,315 49,319 Liabilities 25,534 24,589 21,446 29,700 Equities 3,057 9,781 12,869 19,619

ROS -2.11% 3.30% 3.41% 2.76%ROA -4.54% 7.67% 8.52% 5.02%D/E 6.30 1.50 1.05 1.50

Estimate ยอดขายโต 11.4% =96,000 ล�านับาที่(รวม non-oil ด�วย)

COG 94% = 90,240 ล�านับาที่

Other expense 3.5% เพราะต�องนั�าเง�นัไปพฒนัาสำ�นัค้�าใหม!/ที่�าการตลาดเพ��ม รวม 33,

60 ล�านับาที่

Ebit = 2400 MB