Bangchak Corporation Public Company Ltd · SET:BCP

Bangchak Corporation Public — Bangchak — FY2017 Earnings Presentation

47 slides from Bangchak Corporation Public's earnings presentation, Mar 15, 2018

  1. Slide 1: Opportunity Day FY2017

    Bangchak Corporation Plc. Opportunity Day FY2017 March 15, 2018

  2. Slide 2: FY2017 Performance Summary

    @ v4 FY2017 Performance Summary © oo 4 evolvinyy Oreenovation

  3. Slide 3: BCP Group Portfolios – FY2017 Key Takeaways

    BCP Group Portfolios – FY2017 Key Takeaways Refinery & Trading Marketing • Crude Run Throughout 2017 • Gained Market Share to be at meet the target (111 KBD) 15.4% for 2017 • Higher Market GRM • Thruput per station significantly surpass AVG major oil • 834 MB Inventory gain • Higher NPS, paving way

  4. Slide 4: EBITDA Performance - BCP Group

    EBITDA Performance - BCP Group EBITDA FY Comparison 13,663 MB Unit: THB Million 11,363 MB 286 Natural Resource 529 Bio-Based Product 323 Natural Resource 3,088 326 Green Power Plant Bio-Based Product 2,559 Green Power Plant 2,301 Marketing Marketing 2,527 Refinery 7,596 Refinery 5,756 2016 2017 EPS

  5. Slide 5: BCP Group Portfolios

    BCP Group Portfolios Refinery Marketing Green Power Plant Bio - Based Product Natural Resource Bangchak Corporation Plc. 5

  6. Slide 6: Refinery Business – Going beyond limit

    Refinery Business – Going beyond limit Production Profile Product Yield Actual Crude Run Unit: KBD Maximize high value product Maintaining High Crude 3% 2% 3% 3% 3% 3% Run Throughout the year 20% 17% 20% 19% 19% 19% LPG Gasoline 13% 12% 13% 9% 11% 12% Jet Avg Mar’ 17 121.6 KBD Record High Crude Run

  7. Slide 7: Refinery Business – Going strong

    Refinery Business – Going strong Refinery EBITDA GRM Performance Unit: Unit: THB THB Million Million Unit: $/BBL 7.96 4.18 8.18 8.75 6.53 7.23 7,596 0.86 1.32 3.22 0.60 Inventory 0.03 0.63 0.2 0.45 5,756 Gain / Loss 0.13 0.08 0.25 Oil Hedging 7.07 6.38 6.66 6.38 5.40 5.99 Market GRM -2.82 Q1/17 Q2/1

  8. Slide 8: Distribution channel – Retail market is our main priority

    Distribution channel – Retail market is our main priority Total Sales Volume Total Sales Volume Retail Market Unit: % Portion of total sales volume in FY2017 350 Unit: Million Litre / Month 334 (monthly AVG in the quarter) 307 300 Marketing Business 284 259 251 Retail 250 235 Industrial Market Marke

  9. Slide 9: Marketing Performance – Retail market is our main priority

    Marketing Performance – Retail market is our main priority Marketing EBITDA Net Marketing Margin Net Retail Margin Unit: THB Million Unit: Baht/Litre Net Industrial Margin 0.84 0.83 0.79 0.77 2,527 0.73 0.70 2,301 1.00 1.06 0.94 0.99 0.97 0.88 0.58 0.43 0.46 0.43 0.33 0.37 2016 2017 Q1/17 Q2/17 Q3/1

  10. Slide 10: Marketing Network – Increasing Market Share & Thruput per station

    Marketing Network – Increasing Market Share & Thruput per station Market Share Jan-Dec’16 Jan-Dec’17 ∆ (Retail Channel) 37.0% 36.4% 15.1% 15.4% 12.9% 12.4% 12.8% 13.0% 8.2% 9.5% 1.5% 1.6% 5.6% 5.1% 15.4% 4.9% 4.6% 1.8% 1.8% Monthly Market Share 16.2% (Retail Channel) 15.8% 15.6% 15.6% 15.4% 15.7% 15

  11. Slide 11: Bangchak Service Station - Greenovative Experience

    Bangchak Service Station - Greenovative Experience FY2017 +62 New Service Stations 1,114 service stations as of December 2017 Standard Type 499 sites +53 sites COOP Type 615 sites +9 sites Bangchak Corporation Plc. 11

  12. Slide 12: Bangchak Non-Oil Business – Progression

    Bangchak Non-Oil Business – Progression FY2017 33 stores +27 stores branches FY2017 446 branches +62 branches branches Bangchak Corporation Plc. 12

  13. Slide 13: BCP Group Portfolios

    BCP Group Portfolios Refinery Marketing Green Power Plant Bio - Based Products Natural Resource Bangchak Corporation Plc. 13

  14. Slide 14: Green Power Plant – Growing Capacity

    Green Power Plant – Growing Capacity Green Power Plant EBITDA Unit: THB Million Operating Capacity (MWac) 332 3,088 Wind 14 2,559 158 Geothermal 145 20 30 Solar 125 130 Solar 2016 2017 2016 2017 2017 Highlight Additional COD of Solar Power Plant both in 33.33% Star Energy Group Holding, Indonesia Th

  15. Slide 15: Bio-Based Product Business – to become a new growth engine

    Bio-Based Product Business – to become a new growth engine Bio-Based Products EBITDA Leading bio-based product player in Thailand Unit: Unit: THBTHB Million Million after amalgamation Ethanol Business 529 150 kl/day, Sugar cane Biodiesel Business 810 kl/day, Palm 326 Operates under KGI-NP BBGI holds

  16. Slide 16: Bio-Based Product Business – Biodiesel business back on good track

    Bio-Based Product Business – Biodiesel business back on good track Bangchak Biofuel Biodiesel Plant: Production and Sales Volume BBF EBITDA Unit: Million Litre B5-B7 Unit: THB Million Production B3-B7 249 Sales Volume 245 262 260 215 149 72 69 63 63 61 61 53 51 2016 2017 Q1/17 Q2/17 Q3/17 Q4/17 2016

  17. Slide 17: Bio-Based Products – Ethanol business performance growth as planned

    Bio-Based Products – Ethanol business performance growth as planned Bangchak Bioethanol Production and Sales Volume Unit: Million Litre BBE EBITDA +443% 228 Unit: THB Million 43.6 Production 42.7 Sales Volume 42 2016 2017 BBE full year performance contribution 12.3 12.1 11.9 11.5 11.4 Utilization 80

  18. Slide 18: Natural Resource Business - Nido Petroleum

    Natural Resource Business - Nido Petroleum Nido Petroleum EBITDA Production* (Unit: K.BBL – Net to Nido) Unit: THB Million *Production of Galoc & Nido / Matinloc 323 295 53.03 59.31 50.43 53.14 49.68 41.43 Dubai Price ($/BBL) 1,079 996 2016 2017 847 821 FY17: Managing existing assets sales volume Se

  19. Slide 19: FY2017 Financial Performance

    FY2017 Financial Performance

  20. Slide 20: BCP Financial Highlight

    BCP Financial Highlight Consolidated Company Only Unit: THB Million 2016 2017  2016 2017  Assets 101,783 114,110 +12% 78,349 77,922 -1% Liabilities 57,874 61,979 +7% 41,137 37,439 -9% Shareholder’s Equity 43,909 52,132 +15% 37,212 40,483 9% Net Profit* 4,773 5,778 +21% 4,502 6,152 +37% EPS (THB/Sh

  21. Slide 21: Important Events in 2017: Bio-based Product Restructuring & Amalgamation

    Important Events in 2017 1. Bio-based Product business group restructuring & Amalgamation Amalgamation between BBH & KSLGI BCP KSL 60% BBH KSLGI 40% BBGI Paid up capital 2,532 MB Impact to Balance Sheet: Consolidated: • Asset: Goodwill 1,602 MB • Equity: Surplus from amalgamation 1,170 MB Company On

  22. Slide 22: Important Events in 2017: E&P Impairment, Lithium Shareholding

    Important Events in 2017 2. E&P Business Impairment Loss • Future oil prices is still continuing to fluctuate • Group concluded to cease the development plan in Mid-Galoc because the development is not commercially viable Consolidated: • Nido Assets Impairment 1,528 MB Company Only: • BCPE Investmen

  23. Slide 23: Important Events in 2017: BCPG Investments, Tax Return, Loan Restructuring

    Important Events in 2017 4. BCPG Investment in Associated Companies (Wind & Geothermal Power Plant) • 40% PetroWind Energy, Philippines  Investment: 918 MB • 33.33% Star Energy Group Holding, Indonesia  Investment: 11,956 MB 5. Corporate Income Tax Return • Tax returns 897 MB from the corporate in

  24. Slide 24: Statement of Income - Consolidated

    Statement of Income - Consolidated Statement of Income Unit: THB Million FY2016 FY2017 Remark: Revenue 144,705 172,138 Gross Profit +14% Mainly increased from Cost of goods sold (132,809) (158,596) • Refinery, with +0.70$/BBL better GRM, included 834 MB Inventory Gain Gross Profit 11,896 13,543 • Bi

  25. Slide 25: Statement of Income - Consolidated

    Statement of Income - Consolidated Statement of Income Unit: THB Million FY2016 FY2017 Remark: Revenue 144,705 172,138 Loss on FX forward contracts Mainly increased from Cost of goods sold (132,809) (158,596) BCPG forward contracts loss of 304 MB from THB appreciation Gross Profit 11,896 13,543 Inve

  26. Slide 26: Financial Position - Consolidated

    Financial Position - Consolidated Unit: THB Million Assets Liabilities & Equity 114,110 114,110 4,046 Short term loan 101,783 10,325 101,783 10,016 Account Payable 7,511 7,444 Cash and Equivalents & 7,589 Current Liabilities 21,006 8,766 Short term Investment 15,720 6,168 Account Receivable 6,022 2,

  27. Slide 27: Financial Position - Consolidated

    Financial Position - Consolidated Unit: THB Million  Cash and Equivalents & ST Investment Current Assets - 10,681 MB mainly from cash paid for asset / acquisitions, 44,150 debt repayment and dividend payment 36,291 Cash and Equivalents & 21,006  Trade Account Receivable Short term Investment 10,32

  28. Slide 28: Financial Position - Consolidated

    Financial Position - Consolidated Unit: THB Million Non-Current Assets  PP&E +1,587 MB mainly from 77,820  Refinery machinery, marketing, office equipment increased by 4,309 MB  Work in progress of BCPG Plc. of 654 MB 57,632  PPE increase from amalgamation (BBGI) of 1,491 MB 48,049  Depreciatio

  29. Slide 29: Financial Position - Consolidated

    Financial Position - Consolidated Unit: THB Million Current Liabilities 22,378 21,651  Short term loan 4,046 -3,398 MB mainly from repayment of foreign currency loan Short term loan 7,444  Account Payable +1,250 MB mainly from BCPT’s higher transaction volume 10,016 Account Payable 8,766  Other C

  30. Slide 30: Financial Position - Consolidated

    Financial Position - Consolidated Unit: THB Million Non- Current Liabilities 40,327 35,496  Long-term debt +4,714 MB  Loan & Debt repayment 4,161 MB Long Term Debt  Loan drawdown 8,868 MB (mainly from BCPG) 36,857 (Including current 32,143 portion of L/T debt)  Increased from amalgamation (BBGI)

  31. Slide 31: Financial Position - Consolidated

    Financial Position - Consolidated Unit: THB Million Equity 52,132 43,909 2,411 Other Components 121  Equities increased mainly from 15,254 Paid up capital,  Retained Earnings +5,778 MB from FY2017 Net Profit Share premium 14,337 and capital surplus  Dividend Payment 2,822 MB (BCP only)  Capital

  32. Slide 32: Cash Flow - Consolidated

    Cash Flow - Consolidated FY17 Sources and Uses of Cash Unit: THB Million 34,211 299 Income Tax Paid Beginning Cash 19,287 MB 3,311 Dividend Paid 25,341 Dividend, Interest Received, and others 296 9,312 Debt Service & Repayment Selling of ST investment & PPE 1,999 Change in Cash Investment in intangi

  33. Slide 33: 2018 Going Forward

    2018 Going Forward y evolvinyy ODreenovation

  34. Slide 34: Projected Performance 2018

    Projected Performance 2018 Y2018 Substantial Estimation: Refinery • Planned 45 days TAM with 2018 crude run ≈100-102 KBD • Expected GRM of 6 – 7 $/BBL • 3E Project will commence the construction of the CCR and Debottlenecking project • Continue to carry out efficiency improvement programs Marketing

  35. Slide 35: Projected CAPEX 2018

    Projected CAPEX 2018 Investment CAPEX 2018 14,000 THB million *CAPEX not included BCPG Bangchak Corporation Plc. 35

  36. Slide 36: Refinery – 2018 Turnaround Maintenance Plan

    Refinery – 2018 Turnaround Maintenance Plan Bangchak Refinery TAM 2018 Plan Period: 45 days in Q2/2018 Project Tie-in: • Continuous Catalyst Regeneration Unit (CCR) • Hydrocracker Unit (HCU) • Crude Distillation Unit (CDU) 3

  37. Slide 37: Refinery - On-going value enhancement projects

    Refinery - On-going value enhancement projects Project Timeline Y2016 Y2018 Y2019 Y2020 3E Co Generation Power Plant #3 (≈12 MW) Project Completed in 2017 Continuous Catalyst Regeneration Unit (CCR) EPC Award (CCR: Higher Capacity & maintenance cycle extension) Completion (Q1/18)  Prepare for Bid E

  38. Slide 38: BCP service station & non-oil roll out plan

    BCP service station & non-oil roll out plan +200 Stores In 2018 + 340 +80 Service Stations In 2018 +30 Stores In 2018 Network Expansion Current Network Optimization Focus on center of demand • Loyalty program improvement • High quality & Environmental friendly products Competency improvement • Stand

  39. Slide 39: BCPG – Current Projects on hand

    BCPG – Current Projects on hand Existing projects to be Solar Solar COD in 2018 4 MW 8.94 MW Implementation of blockchain technology to trade electricity • Smart Green Community project together with SanSiri Plc. to launch pilot project in Mid-2018 • Peer to peer energy trading within Smart Green Co

  40. Slide 40: BBGI – IPO on process

    BBGI – IPO on process IPO expected around Q4/2018 Current Business Biodiesel PCM commercial plant business Capacity Refined Glycerin 810,000 L/D BBE Productivity improvement Ethanol business (operating day 313->330) Capacity KGI-BP (200->300 kL/D) 500,000 L/D KGI-NP (150->350 kL/D) New Business New

  41. Slide 41: THANK YOU

    THANK YOU ir@bangchak.co.th Tel. +662 335 4390, 335 8518 www.bangchak.co.th click Investor Relations 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 amendm

  42. Slide 42: Appendix – Financial Figures

    Appendix Financial Figures

  43. Slide 43: Profit and Loss (Consolidated)

    Profit and Loss (Consolidated) Unit: THB Million Q4/16 Q3/17 Q4/17 YoY QoQ Sales revenue 40,481 39,009 46,306 14% 19% Cost of goods sold (36,704) (35,450) (42,711) 16% 20% Gross profit 3,776 3,559 3,594 -5% 1% Investment income and other income 177 283 479 170% 69% Selling and administrative expense

  44. Slide 44: Profit and Loss (Consolidated)

    Profit and Loss (Consolidated) Unit: THB Million 2015 2016 2017 YoY Sales revenue 151,140 144,705 172,138 19% Cost of goods sold (139,686) (132,809) (158,596) 19% Gross profit 11,454 11,896 13,543 14% Investment income and other income 543 527 1,205 129% Selling and administrative expenses (5,100) (

  45. Slide 45: EBITDA Structure - Consolidated

    EBITDA Structure - Consolidated EBITDA Structure of the Company and its subsidiaries Q4/2016 Q3/2017 Q4/2017 YoY QoQ Total Revenue 40,481 39,009 46,306 14% 19% Accounting EBITDA 3,061 3,580 3,494 14% -2% Refinery Business 1/ 2,367 2,198 2,256 -5% 3% 2/ Marketing Business (3) 474 302 N/A -36% Power P

  46. Slide 46: EBITDA Structure - Consolidated

    EBITDA Structure - Consolidated EBITDA Structure of the Company and its subsidiaries 2015 2016 2017 YoY Total Revenue 151,140 144,705 172,138 19% Accounting EBITDA 11,081 11,363 13,663 20% 1/ Refinery Business 5,097 5,756 7,596 32% Marketing Business 2/ 2,497 2,527 2,301 -9% 3/ Power Plant Business

  47. Slide 47: Financial Ratio (Consolidated)

    Financial Ratio (Consolidated) Q4/16 Q3/17 Q4/17 2016 2017 Profitability Ratios (%) Gross Margin 9.30% 9.12% 7.76% 8.22% 7.87% EBITDA Margin 7.56% 9.18% 7.84% 7.85% 7.94% Net Profit Margin 2.44% 3.83% 3.38% 3.27% 3.72% Return on Equity (ROE) 1/ 12.70% 13.09% 13.57% Return on Assets (ROA) 7.50% 7.09%

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