BANGCHAK CORPORATION PUBLIC COMPANY LIMITED · 2019. 7. 3. · Bancha Retail Co. td. Bancha reen Net Co. td. Oam Su Social Enterprise Co. td. Bonot Marine Service Co. td. Fuel Pipeline

BANGCHAK CORPORATIONPUBLIC COMPANY LIMITED

COMPANY PROFILE

BANGCHAK CORPORATION PUBLIC COMPANY LIMITEDSustainable Innovative Business Development in Harmony with the Environment and Society

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Its core business is petroleum refining, producing high-standard products from domestic and international

sources. With a capacity of 120,000 barrels per day, Bangchak 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.

01 Company Profile

BCP COMPANY PROFILE1

COMPANY PROFILELorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod

COMPANY PROFILE

To be the Leading Asian Greenovation Group, founded on Good Corporate Governance, through Inclusiveness and Sustainability

Innovation Agility & Mobility Beyond Expectation

ContinuousDevelopment

Pursuit ofSustainability

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.

VISION

MISSION

CORE VALUE

02 Company Profile

03 Company Profile

BANGCHAK BUSINESS STRATEGIES

Security (S1)

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.

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.

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.

Stability (S2)

Sustainability (S3)

STEPS TOWARD GREEN SOCIETY

Company changed its name to Bangchak Corporation Plc.

Expanded investments to E&P business

Achieved Euro IV Standard

Established OilTrading Business

Established Bangchak Retail & launched SPAR

Thailand

Expanded investment in petroleum deposits operated by OKEA AS

in Norway

Established 4 companies to engage in innovative

Green Energy businesses

Converted to Complex Refinery

Listed in SET IPO

BCPG expanded to Wind & Geothermal power plantbusinesses

LaunchedBiofuel Products(Biodiesel, Gasohol)

Established“Bangchak”on 8th November

core business growthexpansion in renewable energy

Acquired Solar Power Plant Business in Japan

Established “BCPG”

Begun commercial operation of Solar power

plant in Bang Pa-in, Ayudhya

EstablishedBiodiesel Business

1984

1994

2004

2009

2011

2012

2014

2016

2017

2018

Strengthening national energy security by emphasizing upstream energy

Diversifying and expanding business portfolio into steady-income businesses

Developing new and related businesses to existing core businesses

04 Company Profile

Mr. Chaiwat Kovavisarach Mr. Yodphot Wongrukmit

Mr. Kiatchai Maitriwong

Mr. Pongchai Chaichirawiwat

Mr. Bundit Sapianchai Mr. Chalermchai Udomranu

Mr. Somchai Tejavanija

Mr. Surachai Kositsareewong

President & CEO SEVPCorporate Management

and Sustainability Development

SEVPCorporate Strategic

Planning and Sustainability Development Group

SEVPPresident of BBGI PLC.

SEVPPresident of BCPG PLC.

SEVP Refinery Business Group

CMO & SEVPMarketing Business Group

SEVPAccounting and Finance

Group

MANAGEMENT TEAM

RefineryComplex Refinery, capacity of 120 KBD, with on-going value enhancement projects (3E and YES-R projects)and integration with own distribution channels

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

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

Bio-based ProductsThe largest biofuel (biodiesel and ethanol) producer and distributorin Thailand, enhancing future growth opportunities

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

BANGCHAK’S BUSINESS PORTFOLIO

05 Company Profile

SHAREHOLDING STRUCTURE

Bangchak RetailCo., Ltd.

Bangchak Green Net Co., Ltd.

Oam Suk Social Enterprise Co., Ltd.

Bongkot Marine Service Co., Ltd.

Fuel Pipeline TransportationCo., Ltd.

Subsidiary Associated Company

Register book closing date on 7 March 2019

Other Company

1,376,923,157 BAHTREGISTER CAPITAL AND PAID – UP CAPITAL

Bangchak Corporation Plc.

Green Power Business Bio-Based ProductsBusiness Group

Marketing BusinessRefinery and

Trading BusinessNatural Resources

Business and Business Development

60.66%14.66%

VAYUPAK FUND 1 PUBLIC

9.98%

MINISTRY OF FINANCE

14.70%

SOCIAL SECURITY OFFICE

BCP Trading Pte. Ltd.100.00%

30.00%

4.95%

100.00%

49.00%Nido Petroleum Pty Ltd.100.00%

Nido Petroleum (Holding) Pty Ltd.

100.00%

Nido PetroleumIndonesia (Holding)Pty Ltd.

100.00%

Nido PetroleumIndonesia (Gurita) Pty Ltd.

100.00%

Nido PetroleumIndonesia (Cakalang)Pty Ltd.

100.00%

Nido PetroleumIndonesia (Baronang) Pty Ltd.

100.00%

40.00%

BCP Energy International Pte, Ltd.100.00%

BCP Innovation Pte, Ltd.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.100.00%

BCPR Co., Ltd.100.00%

Nido Petroleum Phillippines Pty Ltd.

100.00%

BCPR Pte, Ltd.100.00%

Lithium Americas Crop.15.86%

Bonumose LLC.5.17%

Enevate Corporation1.15%

OKEA ASA49.33%

Minera Exar S.A.50.00%

Lithium Nevada Crop.

100.00%

Rheo Minerals Inc.100.00%

BCPG Plc. Bangchak Corporation Plc. Bangchak Corporation Plc.

Bangchak Solar Energy Co., Ltd.

Bangchak Solar Energy (Chaiyaphum1)Co., Ltd.

70.11%

100.00%

100.00%

Bangchak Solar Energy (Nakhonratchasima)Co., Ltd.

100.00%

Bangchak Solar Energy (Buriram1) Co., Ltd.

100.00%

Bangchak Solar Energy (Buriram) Co., Ltd.

100.00%

BBGI Plc.

KSL Green Innovation Plc.

Bangchak Bioethanol(Chachoengsao) Co., Ltd.

60.00%

100.00%

85.00%

Bangchak Biofuel Co., Ltd.

70.00%

Ubon Bio Ethanol Plc.21.28%

Ubon Agricutural Energy Co., Ltd.

100.00%

Ubon Biogas Co., Ltd.

100.00%

Bangchak Solar Energy (Prachinburi) Co., Ltd. 100.00%

BCPG Investment Holding Pte, Ltd.100.00%

BCPG Biopower 1 Co., Ltd. 100.00%

BCPG Biopower 2 Co., Ltd. 100.00%

Lom Ligor Co., Ltd. 100.00%

Star Energy Group Holdings Pte, Ltd.33.33%

Huang Ming Japan Co., Ltd.

100.00%

BSE Energy Holding Pte, Ltd.100.00%

Greenergy Holding Pte, Ltd.100.00%

Greenergy Power Pte, Ltd.100.00%

BCPG Wind Cooperatlef U.A.100.00%

BCPG Japan Cotporation100.00%

PetroWind Energy Inc40.00%

BCPG Engineering Co., Ltd.100.00%

NB Bio EnergyCo., Ltd.

100.00%

Exploration and Production Business

Innovation 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.

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

Enhance the refinery’s safety and environmental standards, to maximize efficiency and capacity through 3E and YES-R projects

Owned distribution channels for supply chain optimization

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

01REFINERY AND TRADING BUSINESS

BANGCHAK’S REFINERY CHARACTERISTIC

06 Company Profile

ปร�มาณการผลิต

TAM = Turnaround Maintenance Period

ActualCrude Run

Utilization Rate

2012 2013 2014 2015 2016 2018TAM TAM TAM TAM

113KBD

74KBD

99KBD 86

KBD

101KBD

102KBD

2017

111KBD61%

83%72%

94%84% 93% 85%

CRUDE SOURCING2018

CAPACITY EXPANSION & EFFICIENCY IMPROVEMENT3E Project : Efficiency, Energy and Environment

PRODUCTION PROFILE

Co Generation Power Plant #3 (≈12 MW)Completed in 2017

Continuous Catalyst Regeneration Unit (CCR) (CCR : Higher Capacity & maintenance cycle extension)To be completed in 2020

Bangchak Refinery uses

> 20 different crude sources (domestic and regional) to produce high quality and environmental friendly products

23 %Domestic

77 %International

PRODUCT YIELD2018

LPG

UCO

Fuel oil

Jet

Diesel

Gasoline

3%

3%

10%

12%

19%

53%

07 Company Profile

Debottlenecking Higher Optimal Crude runTo be completed in 2020

Flexible Product Yieldto capture market demand

Cost Saving from Energy Optimizationand electricity stability in refinery production processes

Extended Interval Between Maintenance Periodsfrom 18 Months to 30 - 36 Months

4,020 ML

53%

1,925 ML

25%1,026 ML14%

622 ML8%

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.

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

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

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.

02MARKETING BUSINESS

MARKETING BUSINESS CHARACTERISTIC

TOTAL SALES VOLUME Unit: % Portion of total sales volume in 2018

08 Company Profile

SERVICE STATIONSas of December 2018

1,175Sites

STANDARD TYPE

555Sites

CO-OP TYPE

620Sites

2012 2013 2014 2015 2016 20182017

13.8%

14.8%

15.1%15.0%

15.1%

15.4%15.8%

“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 fromthe 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.

Retail Market Industrial Market

2012 2013 2014 2015 2016 2017

1,000

900

800

700

600

500

400

300

CAGR 7% FROM 2012-2018

2018

NON-OIL BUSINESS EXPANSIONTo attract customers and expandmarket share

HISTORICAL MARKET SHARE Retail Channel by Sales Volume

Unit: ML/Quarter

Push forward higher sales volume through the highest margin channel

TOTAL SALES VOLUME

SERVICE STATIONS ROLL OUT STRATEGY

NON-OIL ROLL OUT PLAN

NETWORK EXPANSIONFocus on high potential areas, with service stations of distinguished character, harmoniously customized to each area

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.

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.

Second Rank

2

09 Company Profile

Thailand

Japan

Operating : 158 MWDeveloping : 24 MW

Indonesia

Operating : 14 MWDeveloping : 6 MW

The Philippines

SOLAR ENERGY

Data as of December 2018

WIND ENERGY GEOTHERMAL ENERGY

Operating: 15 MWac

Developing: 117 MWac

Operating : Solar 139 MWac

Developing: Wind 9 MWac

Currently, BCPG has a total capacity of 326 MWac

with a further 155 MWac being developed.

• 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 BIOMASS POWERWIND POWER HYDRO POWERGEOTHERMAL POWER

2012 2013 2014 2015 20182016 2017

3870

118 11820

125

1414

139

15

158

1414

130

30

158

Operated by BCPG PLC.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.

03GREEN POWER BUSINESS

GREEN POWER BUSINESS CHARACTERISTIC

CONTRACTED CAPACITYUnit: MWac

10 Company Profile

Khonkaen

UbonratchataniKanchanaburiChachoengsao

Ayudhaya

Operates under BBF

BBGI holds 70%

Biodiesel Business

Crude palm oil930,000 L/D

Operates under KGI-NP

BBGI holds 100%

Ethanol Business

Molasses150,000 L/D

Operates under UBE

BBGI holds 21%

Ethanol Business

Cassava400,000 L/D

Operates under KGI-BP

BBGI holds 100%

Ethanol Business

Molasses300,000 L/D

Operates under BBE

BBGI holds 85%

Ethanol Business

Cassava150,000 L/D

Operated by BBGI PLC.The largest biofuel producer and distributorin 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.

04BIO-BASED PRODUCT BUSINESS

11 Company Profile

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:

ETHANOL ENHANCE CAPACITY

Existing

1,000,000L/D

Target

1,200,000L/D

Registered Capital 2,532 THB Million

40%

60%

BIOMATERIALS

(e.g. Biodegradable Plastics, Recycle Packaging)

BIOCHEMICALS

(e.g. Food Supplements, Cosmetics)

( BEFORE IPO )

BBGI’S STRUCTURE

BBGI – EXPANSION PLAN AND POTENTIAL PROJECTS

RESEARCH & DEVELOPMENT PROJECT SCOPES

12 Company Profile

BCPI holds

15.81 % in LAC As of December 2018

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.

05NATURAL RESOURCES BUSINESS

• 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.

OKEA ASABangchak 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.

Ivar Aasen

Producing Producing Producing

0.554% 15% 55%44.56% 12%

Yme GrevlingDraugen Gjoa

Developing Developing

~49%~35%

16%Minor Shareholder

13 Company Profile

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

STARTUP AND INCUBATION

CORPORATE VENTURE CAPITAL

RESEARCH& DEVELOPMENT

for greenovative breakthrough

ResearchInstitutes

Universities

Expertsand Advisors

Corporate Partner& Startup Support

FundingCustomer Support &Service Provider

Live Lab &Co-working Space

Entrepreneur & Startup

GREEN ECOSYSTEM

14 Company Profile

BANGCHAK : CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY ACTIVITIES AND ACHIEVEMENT

AWARDS& RECOGNITIONS

15 Company Profile

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.

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.

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.

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

BIO ECONOMY, a new sustainable Future

Inno – Green Station

Oam Suk Social Enterprise Company Limited

The Integrated Sufficiency Economy Model at Kaen Makrut, Ban Rai, Uthai Thani Province.

The Asset Corporate Awards

SET Sustainability Award 2015-2018

SET Award 2018

The Global Good Governance Awards

ASEAN Corporate Governance

• Platinum Award (2014-2018) in recognition of overall outstanding performance (financial, management, ESG, IR)

• Best CEO Award (2017)• Best Investor Relations (2018)

• Best Sustainability Awards (2017-2018)

• Thailand Sustainability Investment (2015-2018)

• Outstanding Investor Relations (2018)

• Best CEO Platinum Award• Best CSR Excellence Award

(Thailand)• Best Community

Programme Gold Award• Global Good Governance Award (2018)

• TOP 50 ASEAN PLCs (2017-2018)

Asian Excellence Awards• Asia’s Best CEO

(2013-2014, 2016-2018) • Asia’s Best CFO (2015)• Best IR (2012-2018)• Best Environmental Responsibility (2015-2018)

BANGCHAK STOCK INFORMATION

Resources/Energy & UtilitiesSET100 / SETHD / SETCLMV / SETTHSI / MSCI Thailand / ESG 100

Establish Date 08/11/1984

% OF SHAREHOLDER (as of 7 Mar 2019)

As of 7 Mar 2019

BCP Bangchak Corporation Public Company Limited

Price (B.)

32.25

52 Week High/Low

40.50 / 31.00

P / E (X)

18.45

P / BV (X)

1.06

Paid-up (MB.)

1,376.92

Foreign Shareholder

14.36%

Market Cap (MB.)

45,438.46

NVDR Shareholder

7.51%

Listed Date 02/08/1994

Par1.00 Baht

Ministry of Finance 9.98%

Vayupak Fund 1 14.66%

Social Security Office 14.70%

Public 60.66%

16 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: [email protected]