“be pragmatic & agile”. chaiwat_bangch… · “be pragmatic & agile ... business...

30 November 2017

“Be pragmatic & Agile”

Mr. Chaiwat Kovavisarach

President and Chief Executive Officer,Bangchak corporation PLC.

Crude Oil Price (As of Nov 22, 2017)

2011 2012 2013 2014 2015 2016 2017

Crude Oil Price ($/BBL)

-1.1

-0.19

-1.3

-0.16

1.48

0.97

-0.08

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

84

86

88

90

92

94

96

98

100

Implied Stock Change Demand [Right Axis] Supply [Right Axis]

Implied Stock Change(MBD)

Stock Change (MBD)

Global Oil Demand Supply and Stock Changes

EV’s could cut

8 MBD of use by 2040

Source : Bloomberg New Energy Finance

Business Disruption : Widespread Use of EVs

LOWER CRUDE OILPRICE FOR LONGER

Car Efficiency Improvement

5 km/L

20 km/L

100 km/L

1990

2017

2040Year

Business Disruption: 2oC Program/Reduction of Fossil in Power Generation

Source: Intergovernmental Panel on Climate Change (IPCC), Global Carbon Project

Increase in Global Temperature from pre-industry Carbon Emission

3.2 – 5.4 °CIf nothing is done

2.0 – 3.7°CIf current policy

continues

1.7 – 3.2°CAdditional policy

from Paris Agreement

< 2°CParis Agreement

Target

We are here

Global Primary Energy Supply (MTOE)

, X 2015

Bangchak New Vision, Mission, Core Value

….. Change to ……

Core Engines – to realize full potential

MarketingGreen Power

Plant

Second Largest Market Share in Thailand

Extensive retail network, with non-oil business a key competitive advantage

Integration with refinery provides benefits

Complex Refinery with Integration

On-going value enhancement projects

resulted in improvement in normalized utilization

rate with minimal unplanned shutdown time

Long-term Stable Earnings Stream

Balanced mix of green power generation assets across solar, wind and

geothermal

Bio-Based Products

National Leader of Bio-Based Products

Securing BCP own feedstock and to develop the largest bio-

based product producers in Thailand

Preserve long-term business

competitiveness

Seeking new sources of energy

New Growth Engines

RefineryResources

(E&P/Lithium)

Diversify to Green Business

BIIC Creates Green Ecosystem for Greenovative Breakthrough

BIIC : Bangchak Initiative and Innovation Center

Success Case : Lithium as Hedge

Jan Jul 2017

invested 32 MUSD @4.25 CAD/Share

&

Joint Venture 50/50 on the Cauchari-Olaroz project

Mar 2016

Invested 5 MUSD@1.65 CAD/Share

Invested 48 MUSD @4.25 CAD/Share

Jun

15

10

5

0

Stock Price ,CAD