Bangchak Corporation Public Company Ltd · SET:BCP
Bangchak Corporation Public — Investor Day (September 2024)
55 slides from Bangchak Corporation Public's investor day presentation, Sep 2, 2024
Slide 1: Investor Forum 2024
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP September 2, 2024
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 01 02 03 Highlights Strategy Way Forward 3
Slide 4: Group CEO Chaiwat Kovavisarach
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP Mr. Chaiwat Kovavisarach Group Chief Executive Officer and President Bangchak Corporation Public Company Limited
Slide 5: Bangchak Group Journey 40 Years & Way Forward
Bangchak Group Journey 40 Years & Way Forward Refinery Operational Excellence Established Brand Recognition Agile & Fast-Moving Organization Robust Financial Foundation Thailand's Smallest Refinery Best Employer Establish from Cooperative Service Stations Financial Instability 2023 42,000 Aspiration
Slide 6: Top in Class: Awards and Achievements in 1H/24
Top in Class : Awards and Achievements in 1H/24 Top 2 in Oil & Gas The 1st and only Ranked 24th Refinery and Marketing Company in Thailand’s Oil Industry. 1among of 7 Thai companies 350 companies in Asia-Pacific 6
Slide 7: Bangchak Business Portfolio
Bangchak Business Portfolio Register Capital and Paid – up Capital 1,376,923,157 Baht 4.76% 19.85% 14.18% 61.21% Ministry of Finance Vayupak Fund 1 Social Security Office Public (As of 7 March 2024) Sriracha Refinery Bio-Based Products Phra Khanong Holds 45.00% Refinery Leading Fully Integrated Biof
Slide 8: Fostering Synergy and Growth
Fostering Synergy and Growth Strategic Moves with Multiple Growth Engines Rising Beyond Unleashing Empowering Driving Value Refinery Full Potential of E&P Creation in Legacy Networks Business Green Power Amplified synergy realization Strategic market share expansion Leveraging OKEA’s Expertise & Cap
Slide 9: Investor Forum 2024
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP
Slide 10: Agenda
Agenda 01 02 03 Highlights Strategy Way Forward
Slide 11: Thamarat Paryoonsuk, Refinery and Oil Trading
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP Mr. Thamarat Paryoonsuk Senior Executive Vice President, Refinery and Oil Trading Business Group
Slide 12: Sustainable Bio-Refinery
From a Simple Refinery to Two World-Class Complex Refineries Transforming into a Leading Bio-Refinery in Thailand 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 st
Slide 13: Rising Beyond Refinery Legacy Growth Strategy
Rising Beyond Refinery Legacy Operating Seamlessly for Optimization Linear Programming (LP) Single Model Crude Optimization Refinery Optimization Component Exchange Growth Strategy Synergy Enterprise Product Quality Optimization Synergy among 2 Crude/Product Management Refineries & others Crude Logi
Slide 14: Rising Beyond Refinery Legacy: Trading Integrations
Rising Beyond Refinery Legacy Total Trading Vol., (MBBL) Trading Integrations XX% 2024E 2023 49 +130% Crude Supply BANGCHAK GROUP New Crude Long Haul Crude Benefits Trading Business Logistics Optimization Improved GRM Product Trading (High Value Products) Phra Khanong New Market of Products & Feed S
Slide 15: Rising Beyond Refinery Legacy: Logistics Optimization
Rising Beyond Refinery Legacy Logistics Optimization Throughput Vol., (MBBL) Benefits Lower 2024E 2023 +25% Logistics Cost 28 New Logistics Logistics Business Opportunity Phra Khanong Sriracha 15
Slide 16: Sustainable Aviation Fuel (SAF): The Next Wave of Growth
Sustainable Aviation Fuel (SAF) The Next Wave of Growth Investment Budget: 8.5 bn. THB 61% Construction Progress as of AUG24 Target COD: Q2/25 Bangchak Feedstock & Expected Production Yield Total Capacity Major Food Partners 360 ML/Y Household Thru Bangchak S/S 55-60% 90% SAF UCO Production Feedstoc
Slide 17: SAF: The One & Only Answer for Carbon Reduction in Aviation
Sustainable Aviation Fuel (SAF) The One & Only Answer for Carbon Reduction in Aviation Industry 65% Projected Global SAF Share in JET Fuel 54% 39% 5.2% 17% <0.05% 2% Source: IATA, Statista, Press 2020 2025E 2030E 2035E 2040E 2045E 2050E SAF Blending Mandate Adoption Airlines Announced 10% SAF Blendi
Slide 18: Refinery Business: Key Growth Drivers
Rising Beyond Refinery Legacy Refinery Business: Key Growth Drivers Smart Refinery • Real-Time Optimization • Operation & Workforce Boost Group Crude Run • Work Process (KBD) 280KBD • Alert System • Terminal and Offsite 2025E Practice Sharing • TAM Extension 222 266 KBD Phra Khanong Refinery Srirach
Slide 19: Investor Forum 2024
Click to edit Master title style INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP
Slide 20: Seri Anupantanan, Marketing Business Group
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP Mr. Seri Anupantanan Senior Executive Vice President, Marketing Business Group
Slide 21: From Cooperative Service Stations to Greennovative Destination
From Cooperative Service Stations 3rd Consecutive Superbrands 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
Slide 22: Greenovative Destination
Greenovative Destination 22
Slide 23: Unleashing Full Potential of Marketing Networks
Unleashing Full Potential of Marketing Networks Retail Market Commercial Market Expand Footprint and Strengthen Positioning of Greenovative Destination Strengthen #2 Rank Market Share with Service Station Expansion Improved Value Capture >2,400 2,214 stations stations in 2030 High-Grading Portfolio
Slide 24: Marketing Business: Key Growth Drivers
Unleashing Full Potential of Marketing Networks Marketing Business: Key Growth Drivers Service Stations Expansion Way of Living Concept (sites) To Boost Retail Experiences Strengthen Retail Experience Offering (outlets) +220 2,400 with Way of Living Concept each year ~1,0XX >2,400 +90 +40 1 Coffee S
Slide 25: Investor Forum 2024
Click to edit Master title style INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP 25
Slide 26: Bundit Hansapaiboon, Bangchak Sriracha
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP Mr. Bundit Hansapaiboon Director and Chief Executive Officer, Bangchak Sriracha Public Company Limited
Slide 27: Amplified Synergy Realization: EBITDA target 5,500 MB/Y
Amplified Synergy Realization increase in GRM, EBITDA target: 5,500 MB/Y onwards boosting EBITDA at 3,500 Refinery Operations Logistics MB/Y ++ Product Yield & GRM Optimization ++ Re-Zoning Focus Every per$1BBL *Based on BCP Group’s Crude Run at 280 KBD ++ Sriracha Refinery’s Improved Utilization ++
Slide 28: Investor Forum 2024
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP
Slide 29: Niwat Adirek, BCPG
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP Mr. Niwat Adirek Chief Executive Officer and President BCPG Public Company Limited
Slide 30: 6 Countries Globally
From Thailand-Based Business to Footprint in 6 Countries Globally Production Capacity 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 1,959 MW through investment in four combine
Slide 31: Enhancing Value from Green Power Business
Enhancing Value from Green Power Business Energizing a Greener and Sustainable World Target in 2030 Diversified Portfolio to be Greener Leading Climate Solution Further than MW Carbon Credit 2,500,000 tCO2 Ensure Carbon Neutrality Total 1,959 MWppa Value to Shareholder Higher Through Develop-to-Sell
Slide 32: Investor Forum 2024
Click to edit Master title style INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP
Slide 33: Kittiphong Limsuwannarot, BBGI
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP Mr. Kittiphong Limsuwannarot Chief Executive Officer and President BBGI Public Company Limited
Slide 34: Biotechnology Beyond Biopower
Biotechnology Beyond Biopower Biofuel Production Capacity Leading Fully Integrated Biofuel Producer in Thailand, aiming to become a leader in premium bio-based products and biotechnology business. 53% Bio-based (B100) 1.0 ML/D Total Holds 45.00% 1.85 ML/D Ethanol Ethanol (UBE) 43% 3% 0.05 ML/D 0.8 M
Slide 35: Maximizing Assets and Pioneering in Biotechnology
Maximizing Assets and Pioneering in Biotechnology Biofuels Business Turnaround Group Demand Over Supply from Bangchak Group Network Expansion High-Value Product Transformation in Action >1 ML/year international Demand Export to BCP Group demand Supply Demand Supply ASEAN 1st CDMO Producer market ove
Slide 36: Investor Forum 2024
Click to edit Master title style INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP
Slide 37: Komut Maneechai, BCPR
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP Mr. Komut Maneechai Vice President, BCPR เสื้อเขียว
Slide 38: 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. 100* Unit of Production [KBOEPD] 2030E OKEA Started 36-40 inves
Slide 39: Empowering E&P Business
Empowering E&P Business Actively pursue further value creation Proactively engage key player E&P companies in region Scale-up in current portfolio with organic & Expand into and utilize ability of OKEA inorganic growths. Asia-Pacific “Partner of Choice” for regional opportunity 50 OKEA ASA Holds 45.
Slide 40: Investor Forum 2024
Click to edit Master title style INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP
Slide 41: Narupan Suthamkasem, Corporate Strategy
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP Mrs. Narupan Suthamkasem Senior Executive Vice President, Corporate Strategy and Business Development
Slide 42: 2030 Illustration of Bangchak Group Ecosystem
2030 Illustration of Bangchak Group Ecosystem Sustainable Fuels (SAF) Scalable Non-Oil Customer Experience Battery Value Chain Logistics Chemical & Since 2015 Solvent Carbon Businesses Trading Today Niche Products Premium- Future Trading Lube Car Wash Synbio Sustainable Fuel BaaS CDMO Clean Bio (SAF
Slide 43: Investor Forum 2024
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP
Slide 44: Phatpuree Chinkulkitnivat, CFO
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP Ms. Phatpuree Chinkulkitnivat Chief Financial Officer and Senior Executive Vice President Accounting and Finance
Slide 45: CAPEX 2025-2030 Investment Plan
Investment Plan CAPEX 2025-2030 By Economy By Investment Type Natural Refinery & 50% 45% Resources Natural Marketing, 60% 120 Resources, 30% 35% 20% Bn. THB 50% Green Power Green Bio-Based & 35% 40% Power, 25% New Business, 10% Low Carbon vs. M&A vs. Old Economy Pipeline vs. BAU (Unit: MB) Refinery
Slide 46: Reaching New EBITDA Level: The Journey to THB 100 Bn.
Reaching New EBITDA Level: The Journey to THB 100 Bn. Strong Market Fundamentals, Optimization, Diversification Refinery and Oil Trading Business 9% 9% 10% 41% 39% Platform SAF 51% 42% SRC PKN Marketing Business 15% 30% Retail 85% Experience 70% Refinery & Oil Marketing, Natural 31% 100 Resources, C
Slide 47: Sustained Financial Strength
Sustained Financial Strength Resilience Data as of 30 Jun 2024 Cash(1) Asset Debt(2) EBITDA LTM(3) 45,284MB 353,122 MB 117,334 MB 50,133 MB Remark: (1)Including short-term investment (2)L/T loans and debentures (included current portion of L/T loans and debentures) (3)Last 12 Months Confirm Credit R
Slide 48: Bangchak's Historical Dividend Payment
Bangchak’s Historical Dividend Payment 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, appropria
Slide 49: Investor Forum 2024
Click to edit Master title style INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP
Slide 50: Agenda
Agenda 01 02 03 Highlights Strategy Way Forward
Slide 51: Group CEO Chaiwat Kovavisarach
INVESTOR FORUM 2024 VISION I STRATEGY I CAPITAL ALLOCATION OF BANGCHAK GROUP Mr. Chaiwat Kovavisarach Group Chief Executive Officer and President Bangchak Corporation Public Company Limited
Slide 52: Way Forward to Achieve in 2024
Way Forward to Achieve in 2024 Crude Run (KBD) Total Sale Volume (ML/MO) ~1,100 +20% 266 KBD +45% ML/MO 222 756 2024E KBD 2024E ML/MO 2023 2023 7,960 660 GWh ML/Y 36-40 +112% +56% KBOEPD 2024E +42% 3,744 422 2024E 25 2024E GWh ML/Y KBOEPD 2023 2023 2023 Electricity Sales (GWh) Total Sale Volume Oil
Slide 53: Way Forward to Excel in 2025
Way Forward to Excel in 2025 Crude Run (KBD) Total Sale Volume (ML/MO) 280 ~1,350 +20% ML/MO +5% KBD 266 ~1,100 2025E KBD ML/MO 2025E 2024E 2024E SAF Production (KBD) Oil & Gas Production Volume (KBOEPD) with High Margin 7 ~50 KBD +40% KBOEPD +>100% 2025E 0 36-40 2025E KBD KBOEPD 2024E 2024E 53
Slide 54: Way Forward to Achieve New Revenue Milestones
Way Forward to Achieve New Revenue Milestones Elevating Book Value… Revenue (Unit: Mn.THB) 600K+ 328,017 385,853 136,450 199,417 2020 2021 2022 2023 2024E 2025E BV per Share (Unit: Mn.THB) 47.5 45.3 (6M2024) 32.1 38.6 26.8 2020 2021 2022 2023 2024E 2025E 54
Slide 55: Crafting a Sustainable World with Evolving Greenovation
Crafting a Sustainable World with Evolving Greenovation 55
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