BANGCHAK CORPORATION PUBLIC COMPANY LIMITED
COMPANY PROFILE
BANGCHAK CORPORATION PUBLIC COMPANY LIMITED Conduct business with commitment to business development in tandem with stewardship of the environment and society.
Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod ut laoreet dolore magna aliquam erat volutpat. Ut wisi ad minim veniam, quis Itstincidunt core business is petroleum refining to produce high-standard products fromenim domestic and international nostrud exerci tation ullamcorper suscipit ut aliquip ex ea commodo consequat. sources. With a capacity of 120,000 barrels per day, lobortis Bangchaknisl produces and distributes its products through more than 1,000 service stations nationwide. It has expanded its businesses to oil trading, green power, bio-based products, natural resources, and business development.
1
BCP COMPANY PROFILE
COMPANY COMPANYPROFILE PROFILE
Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod
VISION To be the Leading Asian Greenovation Group, founded on Good Corporate Governance, through Inclusiveness and Sustainability
MISSION
BCP commits in bringing Disruptive and Inclusive Greenovation to Delight our customers, being a trusted partner and Value Creator for all Stakeholders, and promoting Sustainable Development to Society. We emphasize inclusive and Sustainable business, pursue Domestic and Overseas expansion, embrace Good Corporate Governance principles, and nurture a High-performance. Learning culture and happy Workplace.
CORE VALUE
Innovation
Agility & Mobility
Beyond Expectation
Continuous Development
Pursuit of Sustainability
BANGCHAK BUSINESS STRATEGIES
A STEP TOWARDS GREEN SOCIETY
2017 Security Enhance competitiveness, forge secure returns by strategizing the refinery business and the marketing business together to procure, produce, and sell enough fuels for the needs of the business sector and the public. These are to be achieved by planning procurement and purchase of crude oil from domestic and overseas deposits for attractive refining margins and by growing investment in energy innovations, including lithium mines, Key material of battery production, to accommodate changes in demand and future energy technology, including mobile electronic devices and electric vehicles.
Stability Create sustainable business value by increasing the proportion of emerging business revenue through investment in green energy and other businesses and building on products for high value-added ones. Also, focus on investment in steady-income businesses with low risk exposure to external factors in Thailand and abroad, including green power energy and bio-based products.
BCPG expansion to Wind & Geothermal power plant business
Established Oil Trading Business Established Bangchak Retail & launch of SPAR Thailand Acquired Solar Power Plant Business in Japan
Company name change to Bangchak Corporation Plc.
2016
Established “BCPG”
2014
The Solar power plant commercial operation in Bang Pa-in, Ayudhya
2012
Meet Euro IV Standard
2011
Converted to Complex Refinery
Expanding investment to E&P Business
2009
Established Biodiesel Business
Sustainability Develop businesses for a balance between business value and socio-environmental value by taking sustainable development seriously, including development of “Greenovative Experience” service stations, and by valuing water resources-a vital production process resource-leading to a goal of water consumption reduction and by optimizing water discharge reuse.
Launched Biofuel Products (Biodiesel, Gasohol)
2004
1994
SET IPO Listing
1984 core business growth expansion in renewable energy
Established “Bangchak” on 8th November
MANAGEMENT TEAM
Mr. Chaiwat Kovavisarach
Mr. Pongchai Chaichirawiwat
Mr. Somchai Tejavanija
President & CEO
SEVP President of BBGI PLC.
CMO & SEVP Marketing Business Group
Mr. Yodphot Wongrukmit
Mr. Bundit Sapianchai
Mr. Surachai Kositsareewong
SEVP Corporate Management and Organization Development Group
SEVP President of BCPG PLC.
SEVP Accounting and Finance Group
Mr. Kiatchai Maitriwong
Mr. Chalermchai Udomranu
SEVP Corporate Strategic Planning and Sustainability Development Group
SEVP Refinery Business Group
BANGCHAK’S BUSINESS PORTFOLIO
Refinery Complex Refinery capacity of 120 KBD, with on-going value enhancement projects (3E and YES-R projects) and integration with own distribution channels
Marketing Distribution networks of BCP’s oil products, equipped with supplementary non-oil businesses which help increase its market share and sales volume
Green Power Business Engage and invest in the domestic and overseas green power business, including solar power, wind power, and geothermal power business
Bio-based Products The largest biofuel (biodiesel and ethanol) production and distribution business in Thailand, to enhance the group’s future growth opportunity
Natural Resource Consist of petroleum exploration & production business, and lithium mining business, to ensure energy security and preserve long term competitiveness
SHAREHOLDING STRUCTURE 9.98%
14.66%
MINISTRY OF FINANCE
13.52%
61.83%
SOCIAL SECURITY OFFICE
VAYUPAK FUND 1
PUBLIC
Bangchak Corporation Plc. PAID – UP CAPITAL
1,376,923,157 BAHT
Refinery and Trading Business
Marketing Business
100%
BCP Trading Pte. Ltd.
100%
30%
Bongkot Marine Service Co., Ltd.
49%
4.95%
Fuel Pipeline Transportation Co., Ltd.
40%
Bangchak Retail Co., Ltd. Bangchak Green Net Co., Ltd. Oam Suk Social Enterprise Co., Ltd.
Green Power Business
70.27%
BCPG Plc.
100%
100%
BCPG Japan Corp.
40%
PetroWind Energy Inc.
33.33%
Subsidiary
Associated Company
Other Company
Bangchak Solar Energy Co., Ltd.
Star Energy Group Holdings Pte. Ltd.
Bio-based Products Business
60%
BBGI Plc.
100%
KSL Green Innovation Plc.
85%
Bangchak Bioethanol (Chachoengsao) Co., Ltd.
70%
Bangchak Biofuel Co., Ltd.
21.28%
Natural Resources Business
100%
BCP Energy International Pte. Ltd.
100%
100%
Nido Petroleum Pty. Ltd.
BCP Innovation Pte. Ltd.
15.86%
Lithium Americas Corp.
Ubon Bio Ethanol Plc.
As of 14 March 2018
01 REFINERY AND TRADING BUSINESS Bangchak’s refinery is categorized as a modern complex which can produce a large volume of premium-value gasoline and diesel. Gasohol and diesel from Bangchak Refinery are certified as Euro 4 Standard-compliant by the government.
BANGCHAK’S REFINERY CHARACTERISTIC A modern complex Refinery with maximum capacity of 120,000 barrels per day
Owned distribution and selling channel to balance the benefit of the supply chain
To raise the refinery’s safety and environmental standards, to maximize its efficiency and capacity through 3E and YES-R projects
Develop oil trading business by focusing on the strategy of expanding out-out (overseas oil suppliers for overseas customers) transactions
PRODUCTION PROFILE
ปร�มาณการผลิต
94% 83%
Utilization Rate
61%
113 KBD
99 KBD
17%
Actual Crude Run
COM
16%
2012
E PAR
DT
1 O 20
RED
TO
201
4
2
2013
TAM
PA COM
111.28 KBD
101 KBD
86 KBD
74 KBD
93%
84%
72%
2014 TAM
2015
2016
2017
TAM
TAM = Turnaround Maintenance Period
CRUDE SOURCING
PRODUCT YIELD
2017
2017
Bangchak crude Domestic
29 %
Refinery
uses
sweet 3%
LPG
> 20 different crude sources
19% Gasoline
to produce high quality and environ-
12% Jet
both domestically and regionally,
mental friendly products, including
51% Diesel
very low sulfur fuel oil.
2%
International
71 %
UCO
13% Fuel oil
CAPACITY EXPANSION & EFFICIENCY IMPROVEMENT 3E+ Project : Efficiency, Energy and Environment Co Generation Power Plant #3 (≈12 MW) Completed in 2017
Crude Run
capacity 130+ KBD
Flexible Product Yield Continuous Catalyst Regeneration Unit (CCR)
(CCR : Higher Capacity & maintenance cycle extension) To be completed in 2020
to capture demand
Cost Saving on Energy Consumption
and electricity stability in r efinery production processes
Debottlenecking
Higher Capacity To be completed in 2020
Extended Interval Between Maintenance Period
from 18 Months to 30 – 36 Months
02 MARKETING BUSINESS Bangchak’s oil and lubricant products main distribution network, with more than 1,000 Service stations nationwide, and industrial sectors network.
MARKETING BUSINESS CHARACTERISTIC Conducts the business of selling petroleum fuel through service stations, with retail market shares (service station) of more than 15%; in 2nd place, countrywide. With focus on developing service stations under the idea of Greenovative Experience to coincide with modern Thai lifestyle.
With the idea of Greenovative Experience, growth is made in tandem with society and the environment i.e. petrol sales amongst the renewable energy group that is environmentally friendly, high performance, and applies various technologies to service stations in order to lower energy consumption and pollution emission.
Emphasizing the customer experience, aside from developing services and adequate service stations, the locales also have Non-Oil businesses which comprises of Inthanin Coffee Shops and Spar Convenience Store, which helps to maximize customer satisfaction.
Bangchak also sells products to users in the industrial sector, transport sector, airlines, shipping, construction and the agricultural sector.
TOTAL SALES VOLUME
Unit: % Portion of total sales volume in 2017 Marketing Business
HISTORICAL MARKET SHARE
SERVICE STATIONS
2
Retail Channel by Sales Volume
as of December 2017
1,114
Second Rank
15.4%
Sites
15.1%
15.0%
15.1%
2014
2015
2016
14.8% 13.8%
STANDARD TYPE
499
2012
2013
TOTAL SALES VOLUME
Sites
2017
Unit THB/Liter
Push forward higher sales volume through the highest margin channel
CO-OP TYPE
Retail Market
615
Industrial Market
1000 900 C AG
800
OM % FR R 7.4
7 -201 2012
700
Sites
600 500 400 300
2012
2013
2014
2015
2016
2017
SERVICE STATIONS ROLL OUT STRATEGY NETWORK EXPANSION Focus on high potential areas, with service stations of distinguished character, harmoniously customized to each different area
NON-OIL BUSINESS EXPANSION To attract customers and expanding market share
CURRENT NETWORK OPTIMIZATION • Maintaining service quality and pace • Development of Loyalty Program systems and utilizing Big Data to further improve customer satisfaction. • Offer high quality product that is environmentally friendly. • Platform for social movement i.e. using local or agricultural product as promotional gifts to customers.
NON-OIL ROLL OUT PLAN
Bangchak service stations will be expanded to include more non-oil services such as convenience stores, coffee shops, fresh-cooked fast food restaurants to maximize return per space utilization.
The Inthanin Coffee Shop uses 100% Arabica coffee beans, giving utmost importance to the environment. It has expanded into various communities and educational institutions.
World class retail chain originated in the Netherlands, offering an extensive range of fresh produce, focusing on convenience and healthy lifestyles of local customers. It has expanded together with BCP’s services station.
03
Japan Operating : 34 MWac Developing: 117 MWac
GREEN POWER BUSINESS
Thailand
Operating : 130 MWac
OPERATING UNDER BCPG PLC.
Developing: Solar 9 MWac
BCPG engages in operating and investing in power generation business from green energy sources (both domestic and overseas), such as solar, wind, and geothermal power plants.
The Philippines
Wind 9 MWac
Operating : 14 MW Developing : 6 MW
Indonesia
Operating : 158 MW Developing : 24 MW
Currently has capacity of 336 MWac
Data as of july 2018
SOLAR ENERGY
WIND ENERGY
and developing capacity of 165 MWac.
GEOTHERMAL ENERGY
GREEN - POWER BUSINESS CHARACTERISTIC • • • •
Pursuing Bangchak heritage in Green Power Business The Iconic green energy developer who evolves the world through greener and innovative pathways The only and frontier pure green energy player in Thailand Operating diversified green power business portfolio in terms of both technology and geography
SOLAR POWER
GEOTHERMAL POWER
WIND POWER
HYDRO POWER
BIOMASS POWER
CONTRACTED CAPACITY
Unit: MWac
14
158 118
118
70 2013
2014
2015
20
30
125
130
2016
2017
04 BIO-BASED PRODUCT BUSINESS (OPERATE UNDER BBGI PLC.) operates the largest biofuel production and distribution business in Thailand. The total production capacity of BBGI’s subsidiary and associated company is more than 1,830,000 liters per day, dividend into 900,000 liters of ethanol and 930,000 liters of biodiesel per day.
Ethanol Business Biodiesel Business
150,000 L/D
Crude palm oil
Operates under KGI-NP
Operates under BBF
BBGI holds
930,000 L/D BBGI holds
Sugar cane
70%
100%
Ethanol Business
400,000 L/D Cassava
Operates under UBE BBGI holds
21%
Khonkaen Kanchanaburi
Ethanol Business
200,000 L/D Sugar Cane
Ubonratchatani
Chachoengsao
Ethanol Business
150,000 L/D Cassava
Operates under KGI-BP BBGI holds
Ayudhaya
100%
Operates under BBE BBGI holds
85%
BBGI’S STRUCTURE ( BEFORE IPO )
60% 40%
Registered Capital 2,532 THB Million
BBGI – EXPANSION PLAN AND POTENTIAL PROJECT ETHANOL ENHANCE CAPACITY Existing
900,000 L/D Target
1,650,000 L/D
RESEARCH & DEVELOPMENT PROJECT SCOPES
Together with Bangchak Initiative and Innovation Center (BIIC), and Thailand’s leading research and technology institute, BBGI group is studying R&D projects as follow:
BIOMATERIALS
BIOCHEMICALS
(e.g. Biodegradable Plastics, Recycle Packaging)
(e.g. Food Supplements, Cosmetics)
05 NATURAL RESOURCES BUSINESS Consist of petroleum exploration & production business, and lithium mining business. Bangchak invests in Natural Resources business to ensure energy security and preserve the company’s long term competitiveness.
Nido Petroleum Limited Focusing on Rationalization & Cost Cutting Program
Bangchak holds
OKEA AS OKEA (BCP to hold 45%) • BCP to subscribe 90% of capital increase shares from OKEA (939 million NOK) • OKEA is a pure Norwegian development & production company established in 2015 • Cash from capital increase will be used to buy 2 oil producing assets from A/S Norske Shell (Draugen, Gjoa)
100 shares
% 0.554%
Ivar Aasen
15%
Yme
55%
Grevling
44.56%
Draugen
12%
Gjoa
Nido Petroleum Limited (NDO) is a South East Asian focused oil and gas exploration and production company.
BCPI holds
15.84 • • • •
% in LAC
As of July 2018
BCPI invested c$ 42.5 million in LAC. BCPI now the 2nd largest shareholder of LAC. Its business is lithium mining in Argentina and the United States. Cauchari-Olaroz project expects COD in 2020.
BANGCHAK INITIATIVE AND INNOVATION CENTER Bangchak established Bangchak Initiative and Innovation Center (BiiC) to create a Green Ecosystem so that it may drive innovation by focusing on green energy and bio-based business.
INCUBATION & STARTUP
TECHNOLOGY ACQUISTION & NETWORKING
RESEARCH & DEVELOPMENT
GREEN ECOSYSTEM for greenovative breakthrough
Research Organizations
Universities
Entrepreneur & Startup
Live Lab &
Co-working Space
Customer Support & Service Provider
Experts and Mentors
Corporate Partner & Startup Support
Funding
BANGCHAK SOCIAL & ENVIRONMENTAL ACTIVITIES ACHIEVEMENTS OAM SUK SOCIAL ENTERPRISE engages in the purchase of agricultural products and organic crops for processing, marketing, distribution, and R&D. • Organic Rice • Value Added Products • Agricultural Exports BCP Promotion Community Products @ Service Station and SPAR
Rice Exports to SPAR Australia
AWARDS & RECOGNITIONS
Asian Excellence Awards
• • • • •
Asia’s Best CEO (2014, 2016 - 2018) Asia’s Best CFO (2015) Best IR (2012 - 2018) Best Environmental Responsibility (2015 - 2018) Asia’s Icon on Corporate Governance (2015)
The Asset Corporate Awards
•
BAI MAI PANSOOK FOUNDATION HAPPINESS SHARING PHILANTHROPY First BCP Foundation (Established in May 2017) with its mission to improve youth education, protect the environment, and raise living standard for Thais. The foundation expands Bangchak’s CSR commitment into areas that are not directly related to our core business capabilities.
Used Vegetable Oil to Bio-diesel
Platinum Award (2014 2017) in recognition of overall outstanding performance (financial, management, ESG, IR) • Best CEO Award (2017)
SET Sustainability Award 2015 - 2017
•
Best Sustainability Awards (2017) • Thailand Sustainability Investment (2015 - 2017)
International Finance Awards
•
Most Sustainable Renewable Energy Company (2017)
Thailand Go Green
Thailand without waste to achieve the revention of global temperature to not exceed than 2oC.
The Global Good Governance Awards Community (farmers’ cooperatives) Service Stations
cooperation between Bangchak and agricultural cooperatives in opening community service stations since 1992 not only saves energy expenses, but also generates income for farmers.
•
Best CEO Platinum Award • Best CSR Excellence Award (Thailand) • Best Community Programme Gold Award
BANGCHAK STOCK INFORMATION
BCP
Bangchak Corporation Public Company Limited
Resources/Energy & Utilities SET100 / SETHD / SETCLMV / SETTHSI Establish Date
Listed Date
Par
08/11/1984
02/08/1994
1.00 Baht
As of 1 Aug 2018 Price (B.)
52 Week High/Low
P / E (X)
P / BV (X)
36.00
44.50 / 31.00
10.24
1.10
Paid-up (MB.)
Market Cap (MB.)
1,376.92
49,569.23
Foreign Shareholder
NVDR Shareholder
15.80%
8.61%
% OF SHAREHOLDER (as of 4 Mar 2018) Vayupak Fund 14.66% Social Security Office 13.52%
Ministry of Finance 9.98% Other 61.84%
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.
BANGCHAK CORPORATION PUBLIC COMPANY LIMITED 2098 M Tower Building, 8th Floor, Sukhumvit Road, Phra Khanong Tai, Phra Khanong, Bangkok 10260 Thailand. Tel.: +662-335-8663, +662-335-4390, +662-335-8518, +662-335-8253 Email: ir@bangchak.co.th