BCP: Company Profile 2018

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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.


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BCP COMPANY PROFILE

COMPANY COMPANYPROFILE PROFILE

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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


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