BANGCHAK CORPORATION PUBLIC COMPANY LIMITED
COMPANY PROFILE
BANGCHAK CORPORATION PUBLIC COMPANY LIMITED Sustainable Innovative Business Development in Harmony with the Environment and Society
Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod ut laoreet dolore magna aliquam erat volutpat. Ut wisi ad minim veniam, quis Itstincidunt core business is petroleum refining, producing high-standard products fromenim domestic and international nostrud exerci tation ullamcorper suscipit ut aliquip ex ea commodo consequat. sources. With a capacity of 120,000 barrels per day, lobortis Bangchaknisl 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. Company Profile
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BCP COMPANY PROFILE
COMPANY COMPANYPROFILE PROFILE
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VISION To be the Leading Asian Greenovation Group, founded on Good Corporate Governance, through Inclusiveness and Sustainability
MISSION
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.
CORE VALUE
Innovation
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Company Profile
Agility & Mobility
Beyond Expectation
Continuous Development
Pursuit of Sustainability
BANGCHAK BUSINESS STRATEGIES
Security (S1) Strengthening national energy security by emphasizing upstream energy 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.
STEPS TOWARD GREEN SOCIETY Expanded investment in petroleum deposits operated by OKEA AS in Norway
2018
Established 4 companies to engage in innovative Green Energy businesses
2017 Established Oil Trading Business Established Bangchak Retail & launched SPAR Thailand Acquired Solar Power Plant Business in Japan
Company changed its name to Bangchak Corporation Plc. BCPG expanded to Wind & Geothermal power plant businesses
2016
Established “BCPG”
2014
Stability (S2) Diversifying and expanding business portfolio into steady-income businesses 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.
Begun commercial operation of Solar power plant in Bang Pa-in, Ayudhya
Established Biodiesel Business
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.
Achieved Euro IV Standard
2009 Launched Biofuel Products (Biodiesel, Gasohol)
2004
Sustainability (S3) Developing new and related businesses to existing core businesses
2012
2011 Converted to Complex Refinery
Expanded investments to E&P business
1994
Listed in SET IPO
1984
Established “Bangchak” on 8th November
core business growth expansion in renewable energy Company Profile
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MANAGEMENT TEAM
Mr. Chaiwat Kovavisarach
Mr. Pongchai Chaichirawiwat
Mr. Somchai Tejavanija
Mr. Yodphot Wongrukmit
President & CEO
SEVP President of BBGI PLC.
CMO & SEVP Marketing Business Group
SEVP Corporate Management and Sustainability Development
Mr. Bundit Sapianchai
Mr. Surachai Kositsareewong
Mr. Kiatchai Maitriwong
Mr. Chalermchai Udomranu
SEVP President of BCPG PLC.
SEVP Accounting and Finance Group
SEVP Corporate Strategic Planning and Sustainability Development Group
SEVP Refinery Business Group
BANGCHAK’S BUSINESS PORTFOLIO
Refinery Complex Refinery, capacity of 120 KBD, with on-going value enhancement projects (3E and YES-R projects) and integration with own distribution channels
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Company Profile
Marketing Distribution networks of BCP’s oil products, equipped with supplementary non-oil businesses to increase its market share and sales volume
Green Power Business Engage and invest in domestic and overseas green power businesses, including solar power, wind power, and geothermal power
Bio-based Products The largest biofuel (biodiesel and ethanol) producer and distributor in Thailand, enhancing future growth opportunities
Natural Resources Consisting of petroleum exploration & production, and lithium mining businesses, ensuring energy security long term competitiveness
SHAREHOLDING STRUCTURE 14.66% VAYUPAK FUND 1
14.70%
60.66%
9.98%
SOCIAL SECURITY OFFICE
PUBLIC
MINISTRY OF FINANCE
Bangchak Corporation Plc. REGISTER CAPITAL AND PAID – UP CAPITAL
1,376,923,157 BAHT
Refinery and Trading Business
Marketing Business
Bangchak Corporation Plc. 100.00%
30.00%
4.95%
Bangchak Corporation Plc.
BCP Trading Pte. Ltd.
100.00%
Bongkot Marine Service Co., Ltd.
49.00%
Fuel Pipeline Transportation Co., Ltd.
40.00%
70.11%
BCPG Plc.
Bangchak Retail Co., Ltd.
100.00%
Bangchak Green Net Co., Ltd.
100.00%
Oam Suk Social Enterprise Co., Ltd.
100.00%
100.00%
100.00%
100.00%
100.00%
Bangchak Solar Energy (Chaiyaphum1) Co., Ltd.
85.00%
Bangchak Solar Energy (Nakhonratchasima) Co., Ltd.
21.28%
Ubon Bio Ethanol Plc. 100.00%
100.00%
Huang Ming Japan Co., Ltd.
BCP Energy International Pte, Ltd. Nido Petroleum Pty Ltd.
100.00%
100.00%
Nido Petroleum Indonesia (Holding) Pty Ltd.
100.00%
Ubon Agricutural Energy Co., Ltd.
100.00%
Ubon Biogas Co., Ltd.
100.00%
NB Bio Energy Co., Ltd. 100.00%
Bangchak Solar Energy (Prachinburi) Co., Ltd. BSE Energy Holding Pte, Ltd. BCPG Japan Cotporation BCPG Engineering Co., Ltd. 100.00%
100.00%
Greenergy Holding Pte, Ltd.
100.00%
Greenergy Power Pte, Ltd.
100.00%
BCPG Wind Cooperatlef U.A. PetroWind Energy Inc
100.00%
BCPG Biopower 1 Co., Ltd.
100.00%
BCPG Biopower 2 Co., Ltd.
100.00%
Lom Ligor Co., Ltd.
33.33%
Star Energy Group Holdings Pte, Ltd.
Nido Petroleum Indonesia (Gurita) Pty Ltd. Nido Petroleum Indonesia (Cakalang) Pty Ltd. Nido Petroleum Indonesia (Baronang) Pty Ltd.
Nido Petroleum Phillippines Pty Ltd. 100.00%
BCPG Investment Holding Pte, Ltd.
40.00%
Associated Company
Bangchak Bioethanol (Chachoengsao) Co., Ltd.
100.00%
100.00%
Subsidiary
100.00%
Bangchak Biofuel Co., Ltd.
Bangchak Solar Energy (Buriram) Co., Ltd.
100.00%
Register book closing date on 7 March 2019
Exploration and Production Business
KSL Green Innovation Plc.
70.00%
Bangchak Solar Energy (Buriram1) Co., Ltd.
100.00%
100.00%
BBGI Plc.
60.00%
Bangchak Solar Energy Co., Ltd.
100.00%
Natural Resources Business and Business Development
Bio-Based Products Business Group
Green Power Business
Nido Petroleum (Holding) Pty Ltd.
BCPR Co., Ltd. 100.00%
BCPR Pte, Ltd. 49.33%
OKEA ASA
Innovation Business 100.00%
BCP Innovation Pte, Ltd. 15.86%
Lithium Americas Crop. 50.00%
Minera Exar S.A.
100.00%
Lithium Nevada Crop.
100.00%
Rheo Minerals Inc.
5.17%
Bonumose LLC.
1.15%
Enevate Corporation
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.
Other Company
Company Profile
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01 REFINERY AND TRADING 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.
BANGCHAK’S REFINERY CHARACTERISTIC
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Company Profile
A modern complex refinery with a maximum capacity of 120,000 barrel per day
Owned distribution channels for supply chain optimization
Enhance the refinery’s safety and environmental standards, t o maximize efficiency and capacity through 3E and YES-R projects
Strategic development of oil trading business by focusing on expanding out-out (overseas oil suppliers for overseas customers) transactions
PRODUCTION PROFILE
ปร�มาณการผลิต
94%
83% Utilization Rate
61%
72% 113 KBD
99 KBD
86 KBD
74 KBD
84% 101 KBD
93%
85%
111 KBD
102 KBD
Actual Crude Run
2012 TAM
2013
2014 TAM
2015
2016 TAM
2017
2018 TAM
TAM = Turnaround Maintenance Period
CRUDE SOURCING
PRODUCT YIELD
2018
2018
Bangchak Refinery uses Domestic
23 %
3%
> 20 different crude sources (domestic and regional)
LPG
19% Gasoline
to produce high quality and
12% Jet
environmental friendly products
53% Diesel 3%
International
77 %
UCO
10% Fuel oil
CAPACITY EXPANSION & EFFICIENCY IMPROVEMENT 3E Project : Efficiency, Energy and Environment Co Generation Power Plant #3 (≈12 MW)
Flexible Product Yield
Continuous Catalyst Regeneration Unit (CCR)
Cost Saving from Energy Optimization
Debottlenecking
Extended Interval Between Maintenance Periods
Completed in 2017
(CCR : Higher Capacity & maintenance cycle extension) To be completed in 2020
Higher Optimal Crude run To be completed in 2020
to capture market demand
and electricity stability in r efinery production processes
from 18 Months to 30 - 36 Months
Company Profile
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02 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.
MARKETING BUSINESS CHARACTERISTIC 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.
Focusing on developing NonOil businesses, comprising of coffee shops and convenience stores, to maximize customer satisfaction.
Professional teams are assigning to industrial, transportation (airlines land transport and shipping), construction and agricultural sector customers.
TOTAL SALES VOLUME
Unit: % Portion of total sales volume in 2018 Marketing Business
53% 4,02
0 ML
25% 1,92
5M
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Company Profile
L
% % 4 8 1 L
1
M 6 2 0 ,
L
M 622
HISTORICAL MARKET SHARE
SERVICE STATIONS
2
Retail Channel by Sales Volume
as of December 2018
1,175
Second Rank
15.8% 15.4%
Sites
15.1%
15.0%
15.1%
14.8%
STANDARD TYPE
13.8%
555
2012
2013
2014
2015
2016
2017
TOTAL SALES VOLUME
Sites
2018
Unit: ML/Quarter
Push forward higher sales volume through the highest margin channel
CO-OP TYPE
Retail Market
620
Industrial Market
1,000
18 012-20 ROM 2 F % 7 CAGR
900 800 700
Sites
600 500 400 300
2012
2013
2014
2015
2016
2017
2018
SERVICE STATIONS ROLL OUT STRATEGY NETWORK EXPANSION Focus on high potential areas, with service stations of distinguished character, harmoniously customized to each area
NON-OIL BUSINESS EXPANSION To attract customers and expand market share
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.
NON-OIL ROLL OUT PLAN
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.
“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 from the 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. Company Profile
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03
Japan Operating: 15 MWac Developing: 117 MWac
GREEN POWER BUSINESS
Thailand
Operated by BCPG PLC.
Operating : Solar 139 MWac
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.
Developing: Wind 9 MWac
The Philippines Operating : 14 MW Developing : 6 MW
Indonesia
Operating : 158 MW Developing : 24 MW
Currently, BCPG has a total capacity of 326 MWac
Data as of December 2018
SOLAR ENERGY
WIND ENERGY
with a further 155 MWac being developed.
GEOTHERMAL ENERGY
GREEN POWER BUSINESS CHARACTERISTIC • • • •
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
GEOTHERMAL POWER
WIND POWER
HYDRO POWER
BIOMASS POWER
CONTRACTED CAPACITY
Unit: MWac
118 118 38
70
20 125
2012 2013 2014 2015 2016
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Company Profile
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14
158
158
30
15
130
139
2017
2018
04 BIO-BASED PRODUCT BUSINESS Operated by BBGI PLC. The largest biofuel producer and distributor in 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.
Ethanol Business Biodiesel Business
150,000 L/D
Crude palm oil
Operates under KGI-NP
Operates under BBF
BBGI holds
930,000 L/D BBGI holds
Molasses
70%
100%
Ethanol Business
400,000 L/D Cassava
Operates under UBE BBGI holds
21%
Khonkaen Kanchanaburi
Ethanol Business
300,000 L/D Molasses
Ubonratchatani
Chachoengsao
Ethanol Business
150,000 L/D Cassava
Operates under KGI-BP BBGI holds
Ayudhaya
100%
Operates under BBE BBGI holds
85%
Company Profile
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BBGI’S STRUCTURE ( BEFORE IPO )
60% 40%
Registered Capital 2,532 THB Million
BBGI – EXPANSION PLAN AND POTENTIAL PROJECTS ETHANOL ENHANCE CAPACITY Existing
1,000,000 L/D Target
1,200,000 L/D
RESEARCH & DEVELOPMENT PROJECT SCOPES
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:
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Company Profile
BIOMATERIALS
BIOCHEMICALS
(e.g. Biodegradable Plastics, Recycle Packaging)
(e.g. Food Supplements, Cosmetics)
05 NATURAL RESOURCES BUSINESS 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.
OKEA ASA Bangchak 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.
~35%
~49%
16%
0.554%
44.56%
12%
Minor Shareholder
15%
55%
Ivar Aasen
Draugen
Gjoa
Yme
Grevling
Producing
Producing
Producing
Developing
Developing
BCPI holds
15.81 % in LAC • • • •
As of December 2018
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.
Company Profile
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BANGCHAK INITIATIVE AND INNOVATION CENTER
STARTUP AND INCUBATION
Bangchak established Bangchack Initiative and Innovation Center (BiiC) to create a Green Ecosystem to drive innovation on green energy and Bio-Based product business.
CORPORATE VENTURE CAPITAL
RESEARCH & DEVELOPMENT
GREEN ECOSYSTEM for greenovative breakthrough
Research Institutes
Universities
Entrepreneur & Startup
Live Lab &
Co-working Space
Customer Support & Service Provider
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Company Profile
Experts and Advisors
Corporate Partner & Startup Support
Funding
BANGCHAK : CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY ACTIVITIES AND ACHIEVEMENT
AWARDS & RECOGNITIONS
Asian Excellence Awards • Asia’s Best CEO (2013-2014, 2016-2018)
• Asia’s Best CFO (2015) • Best IR (2012-2018) • Best Environmental
BIO ECONOMY, a new sustainable Future 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.
Responsibility (2015-2018)
The Asset Corporate Awards • Platinum Award (2014-2018) in recognition of overall outstanding performance (financial, management, ESG, IR) • Best CEO Award (2017) • Best Investor Relations (2018)
SET Sustainability Award 2015-2018 • Best Sustainability Awards Inno – Green Station 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.
(2017-2018)
• Thailand Sustainability Investment (2015-2018)
SET Award 2018 • Outstanding Investor
Oam Suk Social Enterprise Company Limited 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.
Relations (2018)
The Global Good Governance Awards • Best CEO Platinum Award • Best CSR Excellence Award (Thailand)
• Best Community Programme Gold Award
• Global Good Governance
Award (2018)
ASEAN Corporate Governance • TOP 50 ASEAN PLCs The Integrated Sufficiency Economy Model at Kaen Makrut, Ban Rai, Uthai Thani Province.
(2017-2018)
Developing the quality of life of the Kayin people (Poh) through local partnerships to create sustainable, strong and self-reliant communities.
Company Profile
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BANGCHAK STOCK INFORMATION
BCP
Bangchak Corporation Public Company Limited
Resources/Energy & Utilities SET100 / SETHD / SETCLMV / SETTHSI / MSCI Thailand / ESG 100 Establish Date
Listed Date
Par
08/11/1984
02/08/1994
1.00 Baht
As of 7 Mar 2019 Price (B.)
52 Week High/Low
P / E (X)
P / BV (X)
32.25
40.50 / 31.00
18.45
1.06
Paid-up (MB.)
Market Cap (MB.)
1,376.92
45,438.46
Foreign Shareholder
NVDR Shareholder
14.36%
7.51%
% OF SHAREHOLDER (as of 7 Mar 2019) Vayupak Fund 1 14.66% Social Security Office 14.70%
Ministry of Finance 9.98% Public 60.66%
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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: ir@bangchak.co.th