BCP: Company Profile Year 2018

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BANGCHAK CORPORATION PUBLIC COMPANY LIMITED

COMPANY PROFILE


BANGCHAK CORPORATION PUBLIC COMPANY LIMITED Sustainable Innovative Business Development in Harmony with 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, producing 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 1,100 service stations nationwide. It has expanded its businesses to oil trading, green power energy, bio-based products, natural resources, and business development. Company Profile

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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

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Company Profile

Agility & Mobility

Beyond Expectation

Continuous Development

Pursuit of Sustainability


BANGCHAK BUSINESS STRATEGIES

Security (S1) Strengthening national energy security by emphasizing upstream energy Bangchak’s integrated strategy for refining, marketing, and natural resources to procure, produce, and sell retail petroleum products and biofuels to satisfy the needs of both the private and public sectors. The growth of electric vehicles does not affected the growing demand for petroleum products.

STEPS TOWARD GREEN SOCIETY Expanded investment in petroleum deposits operated by OKEA AS in Norway

2018

Established 4 companies to engage in innovative Green Energy businesses

2017 Established Oil Trading Business Established Bangchak Retail & launched SPAR Thailand Acquired Solar Power Plant Business in Japan

Company changed its name to Bangchak Corporation Plc. BCPG expanded to Wind & Geothermal power plant businesses

2016

Established “BCPG”

2014

Stability (S2) Diversifying and expanding business portfolio into steady-income businesses Bangchak focuses on investments in stable income businesses with low exposure to external risks such as the green power energy (BCPG), and diversifying risks in our businesses through supply chains management to address industry volatility.

Begun commercial operation of Solar power plant in Bang Pa-in, Ayudhya

Established Biodiesel Business

The Company’s preparedness for future technology and change. Bangchak Initiative and Innovation Center (BiiC) was established to invest in innovative energy businesses, such as lithium battery production for EV cars and higher-value bio-based products. In 2018, four venture capital companies were established to invest in domestic startups whose operations are in line with the 10 businesses being promoted by the government.

Achieved Euro IV Standard

2009 Launched Biofuel Products (Biodiesel, Gasohol)

2004

Sustainability (S3) Developing new and related businesses to existing core businesses

2012

2011 Converted to Complex Refinery

Expanded investments to E&P business

1994

Listed in SET IPO

1984

Established “Bangchak” on 8th November

core business growth expansion in renewable energy Company Profile

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MANAGEMENT TEAM

Mr. Chaiwat Kovavisarach

Mr. Pongchai Chaichirawiwat

Mr. Somchai Tejavanija

Mr. Yodphot Wongrukmit

President & CEO

SEVP President of BBGI PLC.

CMO & SEVP Marketing Business Group

SEVP Corporate Management and Sustainability Development

Mr. Bundit Sapianchai

Mr. Surachai Kositsareewong

Mr. Kiatchai Maitriwong

Mr. Chalermchai Udomranu

SEVP President of BCPG PLC.

SEVP Accounting and Finance Group

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

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Company Profile

Marketing Distribution networks of BCP’s oil products, equipped with supplementary non-oil businesses to increase its market share and sales volume

Green Power Business Engage and invest in domestic and overseas green power businesses, including solar power, wind power, and geothermal power

Bio-based Products The largest biofuel (biodiesel and ethanol) producer and distributor in Thailand, enhancing future growth opportunities

Natural Resources Consisting of petroleum exploration & production, and lithium mining businesses, ensuring energy security long term competitiveness


SHAREHOLDING STRUCTURE 14.66% VAYUPAK FUND 1

14.70%

60.66%

9.98%

SOCIAL SECURITY OFFICE

PUBLIC

MINISTRY OF FINANCE

Bangchak Corporation Plc. REGISTER CAPITAL AND PAID – UP CAPITAL

1,376,923,157 BAHT

Refinery and Trading Business

Marketing Business

Bangchak Corporation Plc. 100.00%

30.00%

4.95%

Bangchak Corporation Plc.

BCP Trading Pte. Ltd.

100.00%

Bongkot Marine Service Co., Ltd.

49.00%

Fuel Pipeline Transportation Co., Ltd.

40.00%

70.11%

BCPG Plc.

Bangchak Retail Co., Ltd.

100.00%

Bangchak Green Net Co., Ltd.

100.00%

Oam Suk Social Enterprise Co., Ltd.

100.00%

100.00%

100.00%

100.00%

100.00%

Bangchak Solar Energy (Chaiyaphum1) Co., Ltd.

85.00%

Bangchak Solar Energy (Nakhonratchasima) Co., Ltd.

21.28%

Ubon Bio Ethanol Plc. 100.00%

100.00%

Huang Ming Japan Co., Ltd.

BCP Energy International Pte, Ltd. Nido Petroleum Pty Ltd.

100.00%

100.00%

Nido Petroleum Indonesia (Holding) Pty Ltd.

100.00%

Ubon Agricutural Energy Co., Ltd.

100.00%

Ubon Biogas Co., Ltd.

100.00%

NB Bio Energy Co., Ltd. 100.00%

Bangchak Solar Energy (Prachinburi) Co., Ltd. BSE Energy Holding Pte, Ltd. BCPG Japan Cotporation BCPG Engineering Co., Ltd. 100.00%

100.00%

Greenergy Holding Pte, Ltd.

100.00%

Greenergy Power Pte, Ltd.

100.00%

BCPG Wind Cooperatlef U.A. PetroWind Energy Inc

100.00%

BCPG Biopower 1 Co., Ltd.

100.00%

BCPG Biopower 2 Co., Ltd.

100.00%

Lom Ligor Co., Ltd.

33.33%

Star Energy Group Holdings Pte, Ltd.

Nido Petroleum Indonesia (Gurita) Pty Ltd. Nido Petroleum Indonesia (Cakalang) Pty Ltd. Nido Petroleum Indonesia (Baronang) Pty Ltd.

Nido Petroleum Phillippines Pty Ltd. 100.00%

BCPG Investment Holding Pte, Ltd.

40.00%

Associated Company

Bangchak Bioethanol (Chachoengsao) Co., Ltd.

100.00%

100.00%

Subsidiary

100.00%

Bangchak Biofuel Co., Ltd.

Bangchak Solar Energy (Buriram) Co., Ltd.

100.00%

Register book closing date on 7 March 2019

Exploration and Production Business

KSL Green Innovation Plc.

70.00%

Bangchak Solar Energy (Buriram1) Co., Ltd.

100.00%

100.00%

BBGI Plc.

60.00%

Bangchak Solar Energy Co., Ltd.

100.00%

Natural Resources Business and Business Development

Bio-Based Products Business Group

Green Power Business

Nido Petroleum (Holding) Pty Ltd.

BCPR Co., Ltd. 100.00%

BCPR Pte, Ltd. 49.33%

OKEA ASA

Innovation Business 100.00%

BCP Innovation Pte, Ltd. 15.86%

Lithium Americas Crop. 50.00%

Minera Exar S.A.

100.00%

Lithium Nevada Crop.

100.00%

Rheo Minerals Inc.

5.17%

Bonumose LLC.

1.15%

Enevate Corporation

100.00%

BCV Bio Based Co., Ltd.

100.00%

BCV Energy Co., Ltd.

100.00%

BCV Innovation Co., Ltd.

100.00%

BCV Partnership Co., Ltd.

Other Company

Company Profile

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01 REFINERY AND TRADING BUSINESS Bangchak refinery is a complex refinery, able to produce premium grade gasoline and diesel. Its gasohol and diesel products comply with the governments Euro IV standard.

BANGCHAK’S REFINERY CHARACTERISTIC

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Company Profile

A modern complex refinery with a maximum capacity of 120,000 barrel per day

Owned distribution channels for supply chain optimization

Enhance the refinery’s safety and environmental standards, t o maximize efficiency and capacity through 3E and YES-R projects

Strategic development of oil trading business by focusing on expanding out-out (overseas oil suppliers for overseas customers) transactions


PRODUCTION PROFILE

ปร�มาณการผลิต

94%

83% Utilization Rate

61%

72% 113 KBD

99 KBD

86 KBD

74 KBD

84% 101 KBD

93%

85%

111 KBD

102 KBD

Actual Crude Run

2012 TAM

2013

2014 TAM

2015

2016 TAM

2017

2018 TAM

TAM = Turnaround Maintenance Period

CRUDE SOURCING

PRODUCT YIELD

2018

2018

Bangchak Refinery uses Domestic

23 %

3%

> 20 different crude sources (domestic and regional)

LPG

19% Gasoline

to produce high quality and

12% Jet

environmental friendly products

53% Diesel 3%

International

77 %

UCO

10% Fuel oil

CAPACITY EXPANSION & EFFICIENCY IMPROVEMENT 3E Project : Efficiency, Energy and Environment Co Generation Power Plant #3 (≈12 MW)

Flexible Product Yield

Continuous Catalyst Regeneration Unit (CCR)

Cost Saving from Energy Optimization

Debottlenecking

Extended Interval Between Maintenance Periods

Completed in 2017

(CCR : Higher Capacity & maintenance cycle extension) To be completed in 2020

Higher Optimal Crude run To be completed in 2020

to capture market demand

and electricity stability in r efinery production processes

from 18 Months to 30 - 36 Months

Company Profile

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02 MARKETING BUSINESS Bangchak oil and lubricant products’ main distribution network of more than 1,100 service stations nationwide, industrial sectors network and Non-Oil services satisfy customer expectation and increase competitiveness.

MARKETING BUSINESS CHARACTERISTIC Conducting the business of retailing petroleum fuel and lubricant products through service stations under the concept of “Greenovative Experience” Its market share of more than 15%, makes it the second largest in the country.

Emphasizing great customer experience by developing service and service stations, with responsibility to the society and environment. Eco-friendly products (i.e. premium diesel) and technology at service stations enhance customer experience and reduce energy consumption.

Focusing on developing NonOil businesses, comprising of coffee shops and convenience stores, to maximize customer satisfaction.

Professional teams are assigning to industrial, transportation (airlines land transport and shipping), construction and agricultural sector customers.

TOTAL SALES VOLUME

Unit: % Portion of total sales volume in 2018 Marketing Business

53% 4,02

0 ML

25% 1,92

5M

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Company Profile

L

% % 4 8 1 L

1

M 6 2 0 ,

L

M 622


HISTORICAL MARKET SHARE

SERVICE STATIONS

2

Retail Channel by Sales Volume ​

as of December 2018

1,175

Second Rank

15.8% 15.4%

Sites

15.1%

15.0%

15.1%

14.8%

STANDARD TYPE

13.8%

555

2012

2013

2014

2015

2016

2017

TOTAL SALES VOLUME

Sites

2018

Unit: ML/Quarter

Push forward higher sales volume through the highest margin channel

CO-OP TYPE

Retail Market

620

Industrial Market

1,000

18 012-20 ROM 2 F % 7 CAGR

900 800 700

Sites

600 500 400 300

2012

2013

2014

2015

2016

2017

2018

SERVICE STATIONS ROLL OUT STRATEGY NETWORK EXPANSION Focus on high potential areas, with service stations of distinguished character, harmoniously customized to each area

NON-OIL BUSINESS EXPANSION To attract customers and expand market share

CURRENT NETWORK OPTIMIZATION • Maintain service quality and pace • Development of Loyalty Program systems and utilizing Big Data to further improve customer satisfaction. • Offer high quality environmentally – friendly products • Platform for social movement i.e. using local or agricultural product as promotional gifts to customers.

NON-OIL ROLL OUT PLAN

Marketing Business group focuses on expanding and developing Non-Oil businesses, such as convenience stores, and coffee shops, in service stations will become a crucial part of business expansion to enhance customer experience and traffic.

“THE FRESH QUALITY ECO-COFFEE IN THAILAND” more than 500 Inthanin coffee shops nationwide serve 100% Arabica coffee beans roasted with specific process while giving back to the community and environment.

World class retail chain from 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. Company Profile

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03

Japan Operating: 15 MWac Developing: 117 MWac

GREEN POWER BUSINESS

Thailand

Operated by BCPG PLC.

Operating : Solar 139 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.

Developing: Wind 9 MWac

The Philippines Operating : 14 MW Developing : 6 MW

Indonesia

Operating : 158 MW Developing : 24 MW

Currently, BCPG has a total capacity of 326 MWac

Data as of December 2018

SOLAR ENERGY

WIND ENERGY

with a further 155 MWac being developed.

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 exclusively 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

118 118 38

70

20 125

2012 2013 2014 2015 2016

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Company Profile

14

14

158

158

30

15

130

139

2017

2018


04 BIO-BASED PRODUCT BUSINESS Operated by BBGI PLC. The largest biofuel producer and distributor in Thailand. The total production capacity of BBGI’s subsidiary and associated companies exceeds 1,930,000 liters per day, consisting of 1,000,000 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

Molasses

70%

100%

Ethanol Business

400,000 L/D Cassava

Operates under UBE BBGI holds

21%

Khonkaen Kanchanaburi

Ethanol Business

300,000 L/D Molasses

Ubonratchatani

Chachoengsao

Ethanol Business

150,000 L/D Cassava

Operates under KGI-BP BBGI holds

Ayudhaya

100%

Operates under BBE BBGI holds

85%

Company Profile

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BBGI’S STRUCTURE ( BEFORE IPO )

60% 40%

Registered Capital 2,532 THB Million

BBGI – EXPANSION PLAN AND POTENTIAL PROJECTS ETHANOL ENHANCE CAPACITY Existing

1,000,000 L/D Target

1,200,000 L/D

RESEARCH & DEVELOPMENT PROJECT SCOPES

Together with Bangchak Initiative and Innovation Center (BiiC), and the Asian Institute of Technology (AIT), Thailand’s leading research and technology institute, BBGI group’s R&D project include:

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Company Profile

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.

OKEA ASA Bangchak holds 49% shares in OKEA ASA • The investment was made as a joint partnership in a world-class asset with long-lasting production life. OKEA ASA, a Norwegian company engaging in the petroleum development business in Norway. • Focusing on the Norwegian Continental Shelf, creating value through cost effective development and operation systems.

~35%

~49%

16%

0.554%

44.56%

12%

Minor Shareholder

15%

55%

Ivar Aasen

Draugen

Gjoa

Yme

Grevling

Producing

Producing

Producing

Developing

Developing

BCPI holds

15.81 % in LAC • • • •

As of December 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.

Company Profile

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BANGCHAK INITIATIVE AND INNOVATION CENTER

STARTUP AND INCUBATION

Bangchak established Bangchack Initiative and Innovation Center (BiiC) to create a Green Ecosystem to drive innovation on green energy and Bio-Based product business.

CORPORATE VENTURE CAPITAL

RESEARCH & DEVELOPMENT

GREEN ECOSYSTEM for greenovative breakthrough

Research Institutes

Universities

Entrepreneur & Startup

Live Lab &

Co-working Space

Customer Support & Service Provider

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Company Profile

Experts and Advisors

Corporate Partner & Startup Support

Funding


BANGCHAK : CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY ACTIVITIES AND ACHIEVEMENT

AWARDS & RECOGNITIONS

Asian Excellence Awards • Asia’s Best CEO (2013-2014, 2016-2018)

• Asia’s Best CFO (2015) • Best IR (2012-2018) • Best Environmental

BIO ECONOMY, a new sustainable Future Climate change, the energy crisis and plastic waste has affected food sustainability. The Bio Economy is a revolutionary approach utilizing technology and innovation to further enhance agricultural development and value. The company aspires to use promote Greenovation as the driving force of the new bio economy.

Responsibility (2015-2018)

The Asset Corporate Awards • Platinum Award (2014-2018) in recognition of overall outstanding performance (financial, management, ESG, IR) • Best CEO Award (2017) • Best Investor Relations (2018)

SET Sustainability Award 2015-2018 • Best Sustainability Awards Inno – Green Station Service station development integrating innovation and environmental stewardship. The Thailand Environment Institute awarded Bangchak with the “Inno-Green Station Standard (Platinum)” in 2018 for its quality of life, environmental, and safety enhancements and design.

(2017-2018)

• Thailand Sustainability Investment (2015-2018)

SET Award 2018 • Outstanding Investor

Oam Suk Social Enterprise Company Limited Develop a coffee business under the banner of “Ariyasub Shop” at Cherntawan Ranch, Chiang Rai Province, where the company shares its knowledge with regards to Inthanin Coffee to create a business model that acts as a learning center and storefront.

Relations (2018)

The Global Good Governance Awards • Best CEO Platinum Award • Best CSR Excellence Award (Thailand)

• Best Community Programme Gold Award

• Global Good Governance

Award (2018)

ASEAN Corporate Governance • TOP 50 ASEAN PLCs The Integrated Sufficiency Economy Model at Kaen Makrut, Ban Rai, Uthai Thani Province.

(2017-2018)

Developing the quality of life of the Kayin people (Poh) through local partnerships to create sustainable, strong and self-reliant communities.

Company Profile

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BANGCHAK STOCK INFORMATION

BCP

Bangchak Corporation Public Company Limited

Resources/Energy & Utilities SET100 / SETHD / SETCLMV / SETTHSI / MSCI Thailand / ESG 100 Establish Date

Listed Date

Par

08/11/1984

02/08/1994

1.00 Baht

As of 7 Mar 2019 Price (B.)

52 Week High/Low

P / E (X)

P / BV (X)

32.25

40.50 / 31.00

18.45

1.06

Paid-up (MB.)

Market Cap (MB.)

1,376.92

45,438.46

Foreign Shareholder

NVDR Shareholder

14.36%

7.51%

% OF SHAREHOLDER (as of 7 Mar 2019) Vayupak Fund 1 14.66% Social Security Office 14.70%

Ministry of Finance 9.98% Public 60.66%

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Company Profile


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.: +66 2335 4390, +66 2335 8518, +66 2335 4370 Email: ir@bangchak.co.th


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