Bangchak Corporation Public Company Ltd · SET:BCP
Bangchak Corporation Public — Investor Forum 2023
55 slides from Bangchak Corporation Public's conference presentation, Dec 12, 2023
Slide 1: Investor Forum 2023
Let’s Investor Forum 2023 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP Bangchak Corporation Plc December 12, 2023
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: Agenda
Agenda ขอให้ใช้ background ดำ Bangchak Group อย่ำเอำรูปหมู่บำ้ นมำใช้ Strategy 02 Industry Overview Crafting & Future Directions of 01 03 Our Future Regenerative Fuels 3
Slide 4: Energy Consumption
Energy Consumption World Primary Energy Consumption per day 1.7 EJ Exajoules (1018) (632 EJ per Year) ~350,000 Rounds or ~37,000 Rounds of Airbus A320 travels around the earth from Earth to the Moon Source: IEA Energy Outlook 2023 Airbus A320 burns 121 MJ per km, Earth's circumference 40,077 km, Ear
Slide 5: World's Energy Consumption
World’s Energy Consumption Unit: EJ/day 2.00 Fossil 1.4 EJ / day 1.7 (506 EJ per Year) 1.6 1.7 1.5 12% 220 MBOE/day 1.50 4% 5% 23% 1.00 Fossil 30% 80% 35,000(4.4 L/day/person) ML/day 0.50 (1.4 EJ) 2X 27% World Population 0.00 Drink water per day 2010 Coal Oil 2020 Natural Gas Nuclear 2021 Biom
Slide 6: Liquid Fuels - High Energy Density and Mobility
Liquid Fuels - High Energy Density and Mobility Energy Density 40 Diesel Diesel 30 Jet Gasoline 15 km/kg Natural Gas Battery 20 0.7 km/kg Ammonia Volume, megajoules 10 Lithium–air battery Lithium-ion battery Liquid Fuels per litre 0 0 Nickel-zinc battery 25 50 75 Energy Efficiency >20X Mass, megajou
Slide 7: Liquid Fuels
Energy Consumption in the Transportation Sector Continues to Rely on Liquid Fuels Case: Net Zero Liquid Fuels 1% 5% Fit to all transportation sectors 5% 4% 27% High mobility 9% High energy density 94% 91% 65% 2022 2030 2050 Liquid fuels Gaseous fuels Electricity Source: IEA Energy Outlook 2023 7
Slide 8: Sustainable Regenerative Fuels
Sustainable Regenerative Fuels are expected to play an important role in the transportation sectors Hydrocarbons or Lipids Pre-treatment Used Cooking Oil and Animal Fat Sustainable Fuels Alcohol Fermentation Biomass and Green Refinery Cellulose Bio-derived Hydrocarbon Clean Molecules Extraction Alga
Slide 9: Energy Trilemma - Thailand
Energy Trilemma - Thailand Thailand has consistently been working towards achieving a balance among energy security, energy affordability and environmental sustainability as part of its long-term economic development goals. Energy Security 56.3 /100 Environmental Energy Sustainability Affordability
Slide 10: Best in Class in ESG
Best in Class in ESG ESG International Rating ESG Thailand Rating • SET ESG Rating 2023 of “AAA” in the Resources Group • 5-star CGR rating of “Excellent” from the Thai Institute of Directors (IOD) • Certified by CAC MSCI ESG Rating 2022 of “AA” for 5 Consecutive Years Guaranteed by International &
Slide 11: Agenda
Agenda Bangchak Group Strategy 02 Industry Overview Crafting & Future Directions of 01 03 Our Future Regenerative Fuels 11
Slide 12: Strong Aspiration for 100x
Strong Aspiration for… รอโลโก้ Bangchak 100x จำกไผ่แก้ว ตอนนีใ้ ช้แบบนีไ้ ปก่อน ไม่มี Bangchak Group 100x จ้ะ 100 100 100X Year Bn. THB HAPPINESS for COMPANY EBITDA OUR TEAM 12
Slide 13: Bangchak Business Portfolio
Bangchak Business Portfolio Registered Capital and Paid – up Capital 1,376,923,157 Baht 4.76% 19.84% 14.27% 61.13% Ministry of Finance Vayupak Fund 1 Social Security Office Public (As of 7 September 23) Refinery & Oil Trading Business Clean Power Business 4 power generation technologies 294 KBD of n
Slide 14: Strong Foundation for Value Creation
Strong Foundation for Value Creation Return Platform Commitment E&P Business 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 ensu
Slide 15: With Platforms to Run Multi-Refineries
With Platforms to Run Multi-Refineries Phra Khanong Refinery • Complex refinery with capacity of 120 KBD • Producing high value specialty products Sriracha Refinery • Complex refinery with capacity of 174 KBD • Located near Laem Chabang deep sea port Phra Khanong Refinery Trading Business SAF Produc
Slide 16: From a Simple Refinery to Two World-Class Complex Refineries
From a Simple Refinery to Two World-Class Complex Refineries 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) 2
Slide 17: A World Class Refinery
Bangchak Phra Khanong Refinery A World Class Refinery Refinery Operation Excellent Smart Professional Workforce International Standard Asset Management World Class Refinery Specific Professional Development Plan Automation Simulation Training Transforming AR/VR Training Low Carbon Products Process S
Slide 18: Phra Khanong Refinery – A Legendary Establishment
Strategy: Phra Khanong Refinery – A Legendary Establishment Crude Run New Crude Niche Product Portion OPEX*($/BBL) TAM Extension 4 Yrs 122 KBD 47 12% >2 $/BBL in 2015 2025 2026 2027 Different crude sources 2024 2028 TAM cycle extension from 2 to 4 yrs 2% 99 KBD in 2014 14 1.3 TAM date reduction 39 t
Slide 19: Phra Khanong Refinery – A Bio Refinery: Leadership in SAF
Strategy: Phra Khanong Refinery – A Bio Refinery Leadership in Sustainable Aviation Fuel (SAF) Secured SAF Feedstocks 2024 Used Cooking Oil Domestic (UCO) SAF Construction 2025 Established a strategic partnership with Well-Known Food Brands together with “Fry to Investment budget: Fly” & “1-Time Fry
Slide 20: Logistics Business
Pipeline Truck 7,300 ML/yr 5,100 ML/yr Terminal Ship 9,700 ML/yr 1,670 ML/yr ✓ Logistic network of pipeline, terminal, trucks and vessels Pipeline System Suvarnabhumi Airport ✓ Expansion of terminal hub and fuel transportation to cover all parts of Thailand +630 ML/Y ✓ Integrated Logistic Facility B
Slide 21: World-Class Refineries with Intensive Platform
Strategy: 2 World-Class Refineries with Intensive Platform % Breakdown of Refinery Business EBITDA 21
Slide 22: Strategy: Sriracha Refinery
Strategy: Sriracha Refinery Refinery & Logistics Focus Historical Crude Run & Actual GRM Performance GRM ($/bbl) Crude run (KBD) 12 160 141.1 140.3 139.5 140.0 143.3 132.9 136.9 10 129.8 131.9 140 121.9 123.0 8 114.1 115.0 107.7 120 6 100 9.40 4 7.67 7.81 5.62 5.80 80 2 5.01 4.73 4.03 3.69 2.90 2.66
Slide 23: Sriracha Refinery – Operational & Efficiency Improvement
Strategy: Sriracha Refinery – Operational & Efficiency Improvement Performance Strengthen Refinery Profitability Logistic Improvement High Value Products Accelerate Synergy • Maximize Capacity Utilization Benefit Capture Max Utilization • Expand Crude & Product Berth Capability • Increase High Value
Slide 24: From Cooperative Service Stations to Greennovative Destination
From Cooperative Service Stations to Greennovative Destination The primary distribution channel for our oil and lubricant products involves direct sales to industrial sectors and nationwide service stations. Additionally, our renowned Bangchak service station has received recognition as a Superbrand
Slide 25: Greenovative Destination for Inter-Generations
Greenovative Destination for Inter-Generations Solar Roof at Service Stations Convenient Store & Food Kiosk EV Charger Expansion 2023E: 259 Stations & 2030E: 780 Stations 25 25
Slide 26: Strategy: Marketing Business
Strategy: Marketing Business Retail Market Commercial Market Focus segment Most Comprehensive Nationwide Network • Fleet card customer > 2,203 Optimize return from existing networks Develop compelling offers stations High Premium Product offerings • Asphalt A High-Value Product Sales Focus on for In
Slide 27: Retail Experience Business Growth
Strategy: Marketing Business Retail Experience Business Growth Coffee expansion Expand non-oil offering FY30 to BSRC’s stations ~2,000 outlets FY23 ~1,030 +140 Amplify mart presence Each year outlets Target: 50% Both in and outside service stations Mart Coverage Ex. COOP & Focusing on increasing spe
Slide 28: Strategy: Marketing Business
Strategy: Marketing Business Retail Experience % Breakdown of Marketing Business EBITDA 28
Slide 29: From Thailand-Based Business to countries globally
From Thailand-Based Business to 7 countries globally With 57.81% shares Asia-Pacific’s leading company in renewable energy with solar power, hydropower and wind power businesses. In 2023, BCPG expanded its energy business to the United States through investment in four combined-cycle gas turbine pow
Slide 30: Strategy: Clean Power Business
Strategy: Clean Power Business Core (Power Generation) Energy Output Renewable SolarHydro Solar Renewable 5% Hydro 13% 5% 1% 5% 7% Wind Solar Hydro Private ✓Well diversified portfolio 12% 8% Wind 9,400 4% + 1% 3,700 7,770 GWh ✓Monetization GWh Wind 1% GWh CCGT CCGT ✓Operational excellence 78% CCGT 8
Slide 31: Strategy: Clean Power Business
Strategy: Clean Power Business % Breakdown of Clean Power Business EBITDA 31
Slide 32: Biotechnology Beyond Biopower
Biotechnology Beyond Biopower No.1 Fully Integrated Biofuel Producer in Thailand, 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 U
Slide 33: Strategy: Bio-Based Business
Strategy: Bio-Based Business Core Business Growth High Value Product (HVP) Manufacturing Growth ✓Sales volume to be increased from network ✓Partnership with Bangchak in SAF project ✓ Strategic JV with Fermbox Bio to establish the first CDMO Plant in Thailand and SEA expansion and maximize capacity u
Slide 34: Strategy: Bio-Based Business
Strategy: Bio-Based Business % Breakdown of Bio-Based Business EBITDA 34
Slide 35: Strong Foothold in E&P Business
Strong Foothold in E&P Business With investment in upstream petroleum exploration and production (E&P) business through OKEA ASA in Norway since 2018, Bangchak Group has plans to extend our presence in E&P to other regions in the world. OKEA ASA Holds 45.44% Draugen Hasselmus 44.56% 100 OKEA’s Unit
Slide 36: Strategy: Natural Resources and New Businesses
Strategy: Natural Resources and New Businesses Natural Resources Growth Scale-up of OKEA from organic & inorganic growths Overview of OKEA’s Asset Portfolio and Expand into E&P Business in high potential locations to reach production of 100 KBOEPD by 2030 Production outlook (KBOEPD) ~100 ~40 16 17 1
Slide 37: 2030 Illustration of Bangchak Group Ecosystem
Strategy: 2030 Illustration of Sustainable Bangchak Group Ecosystem Scalable Non-Oil Fuels (SAF) Digital Customer Experience Battery 2015 Businesses Marketing Value Chain Today Carbon Future Niche Trading Products Logistics Trading Premium-Lube Car Care Sustainable Fuel SAF (ATJ) EaaS Synbio CDMO Gr
Slide 38: Strategy: Natural Resources and New Businesses
Strategy: Natural Resources and New Businesses % Breakdown of Natural Resources and New Businesses EBITDA 38
Slide 39: Exponential Growth Journey
Exponential Growth Journey Strong Market Fundamentals, Optimization, Diversification Accounting EBITDA Accounting EBITDA Unit : Million Baht New Growth (% breakdown by business unit) Chapter 100 Bn. Refinery and Oil 28% Trading Business 7% Marketing Business 8% Clean Power Business 29% 4% Bio-Based
Slide 40: Investment Plan CAPEX 2024-2030
Investment Plan CAPEX 2024-2030 Refinery & Natural Marketing, Resources, 150 30% 30% Bn. THB Bio-Based & New Business, 10% Green Power, 30% (Unit: MB) Refinery and Marketing Green Power Bio-Based Products Natural Resources Oil Trading New Business 2024 9,000 1,700 1,700 14,000 800 17,800 5,000 50,00
Slide 41: Strong Financial Status Going Forward
Strong Financial Status Going Forward Resilience Data as of 30 SEP 2023 Cash(1) Asset Debt EBITDA LTM(2) 31,798 MB 328,857 MB 115,708 MB 38,383 MB (2)Last 12 Month Remark: (1)Including short-term investment Confirm Credit Rating from TRIS RATING: A ‘Stable’ Outlook as of 31 AUG 23 Ratios (Times) Ret
Slide 42: Bangchak's Historical Dividend
Bangchak’s Historical Dividend Dividend Policy: ≥ 30 percent of net profit after deduction of allocation of legal reserve 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
Slide 43: Bangchak's Total Stock Return (TSR)
Bangchak’s Total Stock Return (TSR) TSR* 1Y 3Y 5Y BCP 40.6% 148.2% 48.0% “BCP +>35%” “BCP’s TSR +40%” BCP Share price (THB/Share) SET50 SET100 -11.7% -12.9% 2.3% 1.9% -9.6% -8.8% Best Performing Share Price & Surpassed SET ENERGY 50 among SET100 YTD2023 and all peer’s returns! SET ENERGY -14.9% 4.3%
Slide 44: Agenda
Agenda Bangchak Group Strategy 02 Industry Overview Crafting & Future Directions of 01 03 Our Future Regenerative Fuels 44
Slide 45: Reflecting Achievements in 2023
Reflecting Achievements in 2023 Embarking on an Exciting New Chapter Ahead BCP Industry With after Sep 2023 2,221 S/S 155 KBD 488 ML/MO 26% +878 1% 1,343 4% 27% 123 KBD 385 0% BCP+BSRC Crude Run BCP+BSRC Service Station RM Sale Volume 1,262 MW 222% 23 Kboepd 28% 16% 406 ML 42% 392 350 16.3 Kboepd 5%
Slide 46: Anticipating the Evolution of Success in 2024
Anticipating the Evolution of Success in 2024 Driving Forces for sustainable Growth 266 KBD 2,261 S/S 72% 155 KBD 2,221 +40 BCP+BSRC Crude Run BCP+BSRC Service Station 7,770 GWh 40 Kboepd 110% 560 ML 74% 1,262 MW 3,700 GWh 406 40% 23 Kboepd Electricity Output Total Sale Volume Oil & Gas Sales Volume
Slide 47: Embarking on an Exciting New Growth Chapter
Embarking on an Exciting New Growth Chapter Stable path to the Future… Revenue (Unit: Mn.THB) 500K+ 360K+ 312,202 136,450 199,417 2020 2021 2022 2023 2024 BV per Share (Unit: Mn.THB) 47.5 (9M2023) 32.1 38.6 26.8 2020 2021 2022 2023 2024 47
Slide 48: Crafting a Sustainable World with Evolving Greenovation
Crafting a Sustainable World with Evolving Greenovation 48
Slide 49: Thank You
THANK YOU ir@bangchak.co.th Tel. +66 2335 8663/ 8518/ 8662 www.bangchak.co.th
Slide 50: Bangchak Pathway to Net Zero 2050
Bangchak Pathway to Net Zero 2050 2030 Target Carbon Neutrality by Target Net Zero by 2050 B reakthrough Performance Efficiency and Process Improvement 30% C onserving Nature and Society 10% Energy Intensity Index: EII 100,000 tco2 e/y in 2030 onward 97.5 Focusing on Agricultural, reforestation 90.5
Slide 51: Significant Synergies Keep Going on Plan
Significant Synergies Keep Going on Plan >3,000 mn. THB Estimated Annual Run-Rate EBITDA Synergies Refinery Operations Logistics & Crude Supply Marketing Network Corporate Cost Saving ~฿1,000 mn. THB ~฿200 mn. THB ~฿300 mn. THB ~฿1,500 mn. THB ✓ Improved utilization from 130 KBD to ✓ Crude co-loadin
Slide 52: 39 Years Highest-Record Net Profit
39 Years Highest-Record Net Profit >100% QoQ, Operating GRM rose significantly to US$14.67/BBL, due to broader crack spreads in major products amidst a tightening global oil supply from unplanned refinery Accounting EBITDA Accounting EBITDA Refinery and Oil Trading Business maintenance in the US and
Slide 53: Gain on Purchase from ESSO Acquisition Deal 7,389 MB
Gain on Purchase from ESSO Acquisition Deal 7,389 MB Unit : Million Baht ASSETS LIABILITIES Provision 900 & Deferred Tax 100% 76.34% Rai 9,679 10.35% From Tender Offer +15,256 43,943 7,389 65.99% From Exxonmobil 28,687 34,264 Net Equity Fair Value Net Equity Purchase Gain on Gain on before FV adj. A
Slide 54: Q3/2023: Unrivaled Strength and Resilience
Click to edit Q3/2023: Master Unrivaled title style Strength and Resilience Core Performance Unit : Million Baht Gain on One-time Bargain Purchase expenses (1,858) +>100% Impact on 7,389 • Inventory Gain (Loss) • Gain (loss) Foreign Exchange • Fair value on Derivatives • Fair Value of Investment 11,
Slide 55: AndcucuicunlUngaus
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