Bangchak Corporation Public Company Ltd · SET:BCP
Bangchak Corporation Public — Non-Deal Roadshow (May 2024)
44 slides from Bangchak Corporation Public's roadshow presentation, May 2024
Slide 1: May, 2024
scl S&P Global scram T2023 eS : i o. Ses May, 2024 Y,
Slide 2: Disclaimer
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 documen
Slide 3: Register Capital and Paid-up Capital
Register Capital and Paid – up Capital 1,376,923,157 Baht Ministry of Finance Vayupak Fund 1 Social Security Office Public (As of 7 March 24) Sriracha Refinery Phra Khanong Holds 45.00% Refinery No.1 fully Integrated Biofuel Producer in Thailand with Distribution channels through in production capac
Slide 4: Company milestones
CDMO Producer 2023 Producer in Thailand 2023 Invested in Lithium Business in Thailand 2017 In Thailand 2016 in Biofuel 2009 4
Slide 5: Accounting EBITDA
Accounting EBITDA Accounting EBITDA Unit : Million Baht (% breakdown by business unit) 100,000 36% 8% Clean Power Business 4% 44,724 45% 41,680 49% 10% 2% 43% 12,000 4% Avg. 2015-2021 2023 2030E 5
Slide 6: From a Simple Refinery to a Niche Refinery
From a Simple Refinery to Bangchak Group employs a combination of Hydrocracking and Fluidized Catalytic Cracking (FCC) techniques in operating two refineries with a combined nameplate capacity of 294 KBD. This strategy aims to maximize Gross Refinery Margin (GRM) within our Group by providing a KBD
Slide 7: Crude run, OPEX and GRM
Crude Run New Crude OPEX*($/BBL) Niche Product Portion 122 KBD 47 >2 $/BBL in 2015 18% Different crude sources right after TAM in May 2024 12% 14 1.3 99 KBD in 2014 2% PROVEN HIGH LEVEL of GRM ($/BBL) BCP Avg. Peer 14.3 9.1 9.5 6.0 6.4 7.1 5.4 3.2 4.5 10.5 7.0 1.7 7.3 6.1 6.4 7.0 5.2 3.0 3.7 1.8 201
Slide 8: Phra Khanong and Sriracha Refineries
Phra Khanong Refinery Sriracha Refinery Nameplate Capacity 174 KBD FY23 Avg. Utilization Rate Technology Product Yield Maximization LPG Fuel Oil Asphalt Gasoline LPG Diesel Jet Fuel Oil Unconverted Oil near the Laem Chabang deep seaport in Status before acquisition: Sriracha, Chonburi province, wi
Slide 9: Service Stations growth
From Cooperative Service Stations to Stations Ended Q1/24 2X growth Stations 2015 9
Slide 10: Market Share
Market Share service stations in Bangkok & Network Coverage of Branded SS. in Premium Products Central Area in Thailand Growth from + pre-integration Bangchak FY2023 Bangchak Sriracha Avg. Sales Volume via SS Avg. Sales Volume in Industrial Market ML/MO Retail Oil Market Share Lubricant Sales Coffee
Slide 11: Integration synergies on track
Refinery Operations Logistics Marketing Network Corporate Cost Saving Improved utilization from 130 KBD to Logistic re-zoning BSRC's throughput enhancement Economies of scale on back-office 174 KBD Expanded logistics reach with Increase sales volume of premium operations Product yield
Slide 12: Refinery Operations and Logistics
Refinery Operations Logistics Sriracha Crude Run Improvement (Unit: KBD) Logistics Rezoning & Oil Pipeline Usage Pre-Integration: +26% QoQ 3Y-AVG Crude Run at 130 KBD Phra Khanong Refinery: supplies finished products to 150 the Central and Northern 124 144 regions of Thailand 90 via our oil pipeline
Slide 13: Marketing Network and Corporate Cost Saving
Marketing Network Corporate Cost Saving Target to be Rebranding Service Stations 829 45% SS rebranding completed by 2024 Providing shared services i.e. Accounting, IT, HR systems As of APR24 with comprehensive support Avg. Sales Volume via SS from pre-integration Business Management & Brand Royalty
Slide 14: SAF ICAO Certified Technology
SAF ICAO Certified Technology Sustainable Aviation Fuel (SAF) are defined as renewable or waste-derived aviation fuels that meets sustainability HEFA: Synthesized paraffinic kerosene from Hydrotreated Esters and Fatty Acids criteria, that has similar properties to conventional jet fuel but with a sm
Slide 15: SAF Shareholding, Feedstock and Customers
Shareholding Structure SAF Feedstock SAF Customers Investment Budget: 8.5 bn. THB Locked in Sales Volume of total production Production Capacity 1 ML/D (7 KBD) To purchase UCO at Target COD: Q2/2025 Service Stations nationwide Strategic Partnership Agreement Strategic partnership & being a sharehold
Slide 16: Clean power business overview
An integrated power generation company and service provider of smart energy system focusing on renewable and clean power Remark: information as of Mar 2024 and Unit is Contracted capacity or equity MWppa 16
Slide 17: Capital Recycling and Solar Farms
Capital Recycling from Thailand Taiwan Japan Divestment 13 MWe Solar Farm 469 MWe Solar Farm additional acquisition in operating assets under construction as planned 9 solar farms & Asset Management 4 Operating Assets TOTAL 469 MWe and Operation & Maintenance unit Gradually commercialize Transaction
Slide 18: Biotechnology Beyond Biopower
Biotechnology Beyond Biopower aiming to become a leader in premium bio-based products and biotechnology business. Khonkaen Holds 44.99% Kanchanaburi Ayutthaya Chachoensao Total Capacity: Biofuel Production 1.85 ML/D Capacity 0.05 (Unit: ML/D) 0.8 UBE Equity Portion Ethanol Capacity Biodiesel Capacit
Slide 19: JV with Fermbox Bio for CDMO Plant
Strategic JV with Fermbox Bio to establish the first CDMO Plant Expertise in synthetic biology and manufacturing processes Experience in large-scale Capacity: 2,000 project execution Tons/Year PROJECT INVESTMENT : < 444 MB (Proceeds from IPO) % OF BBGI SHARE : > 75% PRODUCTION CAPACITY : 2,000
Slide 20: OKEA production volume
With investment in upstream petroleum exploration and production (E&P) business through OKEA ASA in Norway since 2018, Bangchak Group has planned to extend our presence in E&P to other regions in the world. OKEA ASA Holds 45.44% Draugen Hasselmus 100 OKEA’s Unit of Production: KBOEPD Operator: OKEA
Slide 21: OKEA growth through M&A and organic projects
2P Reserve (MBOE) Thanks to M&A and Organic Growth Taking operatorship in December 2018 Becoming operator in November 2022 FY2022 Q1/24 Increased production efficiency to 90% Draugen (including Bestla) Improved production efficiency to 96% in Q1/2024 (from 88% in 2019) driven in Q1/2024 (from 91% in
Slide 22: Accounting EBITDA Breakdown by Business Unit
Accounting EBITDA Breakdown by Business Unit 142,922 135,382 15,308 80,538 10,992 10,310 29% Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 15,308 MB 48% Q1/2024 12% 2% 9% 2,932 3,428 2,741 2,437 1,803 Refinery Marketing Clean Power (977) Bio-Based Natural Resources Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 22
Slide 23: Accounting EBITDA by Business
Accounting EBITDA (Unit : Million Baht) Clean Power Business 7,404 5,414 5,684 4,029 4,404 2,021 1,899 1,411 1,340 737 852 1,048 107 253 284 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Highest Record Run Rate of 272 Highest Total Sales Volume Higher Shar
Slide 24: 2024E Total CAPEX
Refinery & Natural Marketing, Resources, 30% 30% Bio-Based & New Business, 10% Green Power, 30% (Unit: MB) Green Power 2024E 1,700 14,000 800 17,800 5,000 Total CAPEX in 2024: 50,000 mn.THB 24
Slide 25: Resilience
Resilience Data as of 31 Mar 2024 Cash(1) Asset Debt EBITDA LTM(2) 34,091MB 352,406 MB 128,769 MB 45,997 MB (2)Last 12 Month Remark: (1)Including short-term investment Confirm Credit Rating from TRIS RATING: ‘Stable’ Outlook as of 31 AUG 23 (Times) (%) Net IBD/ EBITDA Net IBD/E ROA ROE* 14.9 14.4 0.
Slide 26: Building a Legacy of Growth
Building a Legacy of Growth Driving growth from key business units Optimize synergy among Bangchak Group Continued searching for future investment opportunities Maximizing Returns Deliver high level of Total Shareholding Returns (TSR) Disciplined new investment Capital recycling for portfolio optimi
Slide 27: BCP+BSRC combined operating figures
155 KBD 2,219 717 BCP+BSRC Crude Run BCP+BSRC BCP+BSRC Service Station BCP+BSRC Total Sales Volume (ML/MO) BCP+BSRC 3,770 kWh 422 23 Kboepd Electricity Output Total Sales Volume Oil & Gas Sales Volume of B100 & Ethanol 27
Slide 28: Crafting a Sustainable World with Evolving Greenovation
Crafting a Sustainable World with Evolving Greenovation http://www.bangchak.co.th Bangchak @Bangchak.WOW
Slide 29: Dividend Payment
However, this is subject to the economic situation, the Company’s cash flow and investment plans of the Company and its subsidiaries according to the necessary, appropriation and other concerning as the Board of Directors’ consideration. Dividend Payment EPS 1st Half 2nd Half Unit: THB per Share 8.8
Slide 30: Refinery and Trading Business
EBITDA (MB) Crude Run (KBD) Phra Khanong’s GRM ($/BBL) Sriracha’s GRM ($/BBL) 104% 101% 101% 69% 86% 10.16 7.38 7.29 (1.30) 5.17 272 240 3.13 4,404 119.30 150.30 0.74 Inventory Gain (Loss) 4,029 125 11.44 7.27 7.39 Hedging 0.23 2.00 5.03 (4.41) (0.71) (0.84) Operating GRM (3.30) (0.08) 1,340 125 121
Slide 31: Refinery crude run, yield and logistics
Q1/24 Q1/24 Q1/24 Phra Khanong Refinery Sriracha Refinery Bangchak Group Crude Run 121 KBD (101%) 150 KBD (86%) (Utilization Rate) The highest crude run in DEC23 at 144 KBD 2% 6% 22% 13% 33% Product Yield 6% 48% 43% 8% 9% 2% 7% Q1/24 Q1/24 Crude Source 17% 57% 3% 8% 15% 47% 18% 16% 19% 10% 26% 10% 7
Slide 32: Marketing Business
Marketing Business EBITDA (MB) RM Sales Volume (ML/MO) Sales Volume by Key Product (ML/MO) 698 719 Mogas JET Diesel 652 Bangchak's Group 1,063* 1,069* 396 394 387 415 423 BCP 62% 59% 509 509 553 514 578 265* 283 296 59% 65% 10% 495 58% 60% 12% BSRC 61% 61% 2,021 1,899 11% 11% 12% 7% 28% 14% 9% 29% 2
Slide 33: Service stations and sales volume
Q1/24 Q1/24 Q1/24 Bangchak Service Stations Bangchak Service Station under BSRC Operation Bangchak Group No. of SS 1,388 829 372 SS rebranding As of APR24 Total Sales Volume 1,899 ML (10% QoQ) 1,653 ML (-1% QoQ) (3% QoQ) Retail Market: Industrial Market 67% 33% 54% 46% 61% 39% Retail Market Share 17
Slide 34: Clean Power Business
EBITDA (MB) Electricity Output (GWh) 112.8 145.5 300.5 250.9 176.9 182.9 Hydro – LA 142.7 Hydro – LA Fully paused for transition to EVN 1,411 84.5 83.8 82.2 83.8 Solar - TH 1,048 76.7 66.2 852 25.2 35.0 37.0 23.3 Solar - JP 24.5 23.7 3.1 2.2 4.0 2.7 3.2 Wind - TH Q1/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23
Slide 35: Bio-Based Products Business
Bio-Based Products Business EBITDA (MB) Revenue (MB) Sales Volume (ML) B100 Ethanol 284 4,240 4,958 120 253 2,942 67 78 107 28 50 25 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Avg. Market Price (Baht/Liter) Biodiesel business witnessed an increase in gross profit, due to rising biodiesel
Slide 36: Natural Resources Business
Natural Resources Business EBITDA (MB) Revenues from Crude Oil and Gas Sales (MB) Natural Resources Business Group has once again reported another , supported by Sale volume grew by over 82% QoQ, due to • Full-quarter recognition from the recently acquired 11,595 Statfjord field area 7,404 9,707 • A
Slide 37: Summary of results by business
Unit: THB Million Q1/2023 Q4/2023 Q1/2024 QoQ YoY Total Revenue 80,538 142,922 135,382 -5% 68% Refinery and Trading Business 1/ 66,132 213,913 202,628 -5% >100% Marketing Business 2/ 49,220 97,240 99,592 2% >100% Clean Power Business 3/ 1,057 1,318 1,194 -9% 13% Bio-Based Products Business 4/ 2,942
Slide 38: Consolidated Statement of Income
Consolidated Statement of Income (THB Million) Q1/2023 Q4/2023 Q1/2024 QoQ YoY Revenue from sale of goods and rendering of services 80,538 142,922 135,382 -5% 68% Cost of sale of goods and rendering of services (72,228) (135,236) (123,393) -9% -71% Gross Profit 8,309 7,686 11,989 56% 44% Other incom
Slide 39: Financial ratios
Q1/2023 Q4/2023 Q1/2024 Profitability Ratios (%) Gross Profit Margin 10.34% 5.61% 9.37% EBITDA Margin 13.69% 7.44% 11.97% Net Profit Margin 4.19% -2.46% 2.18% Return of Equity (ROE) 17.76% 19.63% 18.39% Efficiency Ratio (%) Return on Assets (ROA) 12.39% 8.80% 9.02% 31 Mar 23 31 Dec 23 31 Mar 24 Liqu
Slide 40: Crude price outlook
Crude price move around 80-90 $/BBL in 2H24, Price will be pressured by global economic slowdown weighing on oil demand particular in US and China. However, OPEC continues stabilizing the market by keep reducing supply further into 2024 and uncertainty over geopolitical tensions Dated Brent, Dubai C
Slide 41: Refined product crack outlook
Summer driving season in the U.S. will drive up gasoline cracks amid low inventory and the limited China’s gasoline export. Stable Gasoil crack as global economic slowdown and supply continued to outstrip demand. However, the geopolitical tensions in the Middle East could limit the downside. Higher
Slide 42: E&P Business Return Optimization
E&P Business Return Platform Commitment Optimization for Growth to Net Zero Providing Energy • Synergy Realization • To Run Multi-Refineries In 2050 Security • Shareholder Return • Shared Services Financial Discipline Strong financial management practices to ensure stability and growth 42
Slide 43: Target Carbon Neutrality and Net Zero
Target Carbon Neutrality by Target Net Zero by 43
Slide 44: Growth Balanced Portfolio Strategy
Growth Balanced Portfolio Strategy Economic Dimension Environment Dimension Social Dimension Sustainability Report 44
Bangchak Corporation Public Company — Non-Deal Roadshow (May 2024) on 6ix