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The Bangchak Petroleum Plc.
Analyst Meeting • March 5, 2008
Mr. Mr. Mr. Mr. PatiparnPatiparnPatiparnPatiparn SukorndhamanSukorndhamanSukorndhamanSukorndhaman
Mr. Mr. Mr. Mr. VichienVichienVichienVichien UsanachoteUsanachoteUsanachoteUsanachote
““ Running to be a complex refinery Running to be a complex refinery ””
1
2
DisclaimerThe information contained herein is being furnished on a confideThe information contained herein is being furnished on a confideThe information contained herein is being furnished on a confideThe information contained herein is being furnished on a confidential basis for discussion ntial basis for discussion ntial basis for discussion ntial basis for discussion
purposes only and only for the use of the recipient, and may be purposes only and only for the use of the recipient, and may be purposes only and only for the use of the recipient, and may be purposes only and only for the use of the recipient, and may be subject to completion or subject to completion or subject to completion or subject to completion or
amendment through the delivery of additional documentation. Exceamendment through the delivery of additional documentation. Exceamendment through the delivery of additional documentation. Exceamendment through the delivery of additional documentation. Except as otherwise pt as otherwise pt as otherwise pt as otherwise
provided herein, this document does not constitute an offer to sprovided herein, this document does not constitute an offer to sprovided herein, this document does not constitute an offer to sprovided herein, this document does not constitute an offer to sell or purchase any ell or purchase any ell or purchase any ell or purchase any
security or engage in any transaction. The information containedsecurity or engage in any transaction. The information containedsecurity or engage in any transaction. The information containedsecurity or engage in any transaction. The information contained herein has been herein has been herein has been herein has been
obtained from sources that The Bangchak Petroleum Public Companyobtained from sources that The Bangchak Petroleum Public Companyobtained from sources that The Bangchak Petroleum Public Companyobtained from sources that The Bangchak Petroleum Public Company Limited (Limited (Limited (Limited (““““BCPBCPBCPBCP””””) ) ) )
considers to be reliable; however, BCP makes no representation aconsiders to be reliable; however, BCP makes no representation aconsiders to be reliable; however, BCP makes no representation aconsiders to be reliable; however, BCP makes no representation as to, and accepts no s to, and accepts no s to, and accepts no s to, and accepts no
responsibility or liability for, the accuracy or completeness ofresponsibility or liability for, the accuracy or completeness ofresponsibility or liability for, the accuracy or completeness ofresponsibility or liability for, the accuracy or completeness of the information contained the information contained the information contained the information contained
herein. Any projections, valuations and statistical analyses conherein. Any projections, valuations and statistical analyses conherein. Any projections, valuations and statistical analyses conherein. Any projections, valuations and statistical analyses contained herein have been tained herein have been tained herein have been tained herein have been
provided to assist the recipient in the evaluation of the matterprovided to assist the recipient in the evaluation of the matterprovided to assist the recipient in the evaluation of the matterprovided to assist the recipient in the evaluation of the matters described herein; such s described herein; such s described herein; such s described herein; such
projections, valuations and analyses may be based on subjective projections, valuations and analyses may be based on subjective projections, valuations and analyses may be based on subjective projections, valuations and analyses may be based on subjective assessments and assessments and assessments and assessments and
assumptions and may utilize one among alternative methodologies assumptions and may utilize one among alternative methodologies assumptions and may utilize one among alternative methodologies assumptions and may utilize one among alternative methodologies that produce differing that produce differing that produce differing that produce differing
results; accordingly, such projections, valuations and statisticresults; accordingly, such projections, valuations and statisticresults; accordingly, such projections, valuations and statisticresults; accordingly, such projections, valuations and statistical analyses are not to be al analyses are not to be al analyses are not to be al analyses are not to be
viewed as facts and should not be relied upon as an accurate repviewed as facts and should not be relied upon as an accurate repviewed as facts and should not be relied upon as an accurate repviewed as facts and should not be relied upon as an accurate representation of future resentation of future resentation of future resentation of future
events. The recipient should make an independent evaluation and events. The recipient should make an independent evaluation and events. The recipient should make an independent evaluation and events. The recipient should make an independent evaluation and judgment with respect judgment with respect judgment with respect judgment with respect
to the matters contained herein.to the matters contained herein.to the matters contained herein.to the matters contained herein.
3
2008 : Another Year of Challenging 2008 : Another Year of Challenging 2008 : Another Year of Challenging 2008 : Another Year of Challenging
Performance FY2007Performance FY2007Performance FY2007Performance FY2007
Events and ActivitiesEvents and ActivitiesEvents and ActivitiesEvents and Activities
ContentsContentsContentsContents
►Refinery BusinessRefinery BusinessRefinery BusinessRefinery Business
► MarketingMarketingMarketingMarketing
Product Quality Improvement (PQI) & Related ProjectProduct Quality Improvement (PQI) & Related ProjectProduct Quality Improvement (PQI) & Related ProjectProduct Quality Improvement (PQI) & Related Project
4
PerformancePerformancePerformancePerformancePerformancePerformancePerformancePerformance
FY2007FY2007FY2007FY2007FY2007FY2007FY2007FY2007
5
Factors Effect to 2007 Performance
• FX appreciationFX appreciationFX appreciationFX appreciation
• Tax adjustmentTax adjustmentTax adjustmentTax adjustment
• MKM SqueezeMKM SqueezeMKM SqueezeMKM Squeeze
• TapisTapisTapisTapis crude pricecrude pricecrude pricecrude price
• Product crack spreadProduct crack spreadProduct crack spreadProduct crack spread
• Oil price hikeOil price hikeOil price hikeOil price hike
• Fuel oil export marketFuel oil export marketFuel oil export marketFuel oil export market
• Government policy to Government policy to Government policy to Government policy to
support biosupport biosupport biosupport bio----fuelfuelfuelfuel
Favorable Unfavorable
6
SingaporeSingaporeSingaporeSingapore’’’’s Oil Price Movements Oil Price Movements Oil Price Movements Oil Price Movement
USD/BblUSD/BblUSD/BblUSD/Bbl
Y2007Y2007Y2007Y2007
Y2006Y2006Y2006Y2006
DubaiDubaiDubaiDubai 95/Dubai95/Dubai95/Dubai95/Dubai
GO/DubaiGO/DubaiGO/DubaiGO/Dubai FO/DubaiFO/DubaiFO/DubaiFO/Dubai
USD/BblUSD/BblUSD/BblUSD/Bbl
----
5555
10101010
15151515
20202020
25252525
30303030
Ja
n
Ja
n
Ja
n
Ja
n
Fe
b
Fe
b
Fe
b
Fe
b
Ma
r M
ar
Ma
r M
ar
Ap
r A
pr
Ap
r A
pr
Ma
y
Ma
y
Ma
y
Ma
y
Ju
n
Ju
n
Ju
n
Ju
n
Ju
l J
ul
Ju
l J
ul
Au
g
Au
g
Au
g
Au
g
Se
p
Se
p
Se
p
Se
p
Oc
t O
ct
Oc
t O
ct
No
v
No
v
No
v
No
v
De
c
De
c
De
c
De
c
----
10101010
20202020
30303030
40404040
50505050
60606060
70707070
80808080
90909090
100100100100
Ja
n
Ja
n
Ja
n
Ja
n
Fe
b
Fe
b
Fe
b
Fe
b
Ma
r M
ar
Ma
r M
ar
Ap
r A
pr
Ap
r A
pr
Ma
y
Ma
y
Ma
y
Ma
y
Ju
n
Ju
n
Ju
n
Ju
n
Ju
l J
ul
Ju
l J
ul
Au
g
Au
g
Au
g
Au
g
Se
p
Se
p
Se
p
Se
p
Oc
t O
ct
Oc
t O
ct
No
v
No
v
No
v
No
v
De
c
De
c
De
c
De
c
----
5555
10101010
15151515
20202020
25252525
30303030
Ja
n
Ja
n
Ja
n
Ja
n
Fe
b
Fe
b
Fe
b
Fe
b
Ma
r M
ar
Ma
r M
ar
Ap
r A
pr
Ap
r A
pr
Ma
y
Ma
y
Ma
y
Ma
y
Ju
n
Ju
n
Ju
n
Ju
n
Ju
l J
ul
Ju
l J
ul
Au
g
Au
g
Au
g
Au
g
Se
p
Se
p
Se
p
Se
p
Oc
t O
ct
Oc
t O
ct
No
v
No
v
No
v
No
v
De
c
De
c
De
c
De
c
(25)(25)(25)(25)
(20)(20)(20)(20)
(15)(15)(15)(15)
(10)(10)(10)(10)
(5)(5)(5)(5)
----
Ja
n
Ja
n
Ja
n
Ja
n
Fe
b
Fe
b
Fe
b
Fe
b
Ma
r M
ar
Ma
r M
ar
Ap
r A
pr
Ap
r A
pr
Ma
y
Ma
y
Ma
y
Ma
y
Ju
n
Ju
n
Ju
n
Ju
n
Ju
l J
ul
Ju
l J
ul
Au
g
Au
g
Au
g
Au
g
Se
p
Se
p
Se
p
Se
p
Oc
t O
ct
Oc
t O
ct
No
v
No
v
No
v
No
v
De
c
De
c
De
c
De
c
Adfdkffjdk;fjksda;fj;aaaaaaaaaaaaaaaaaaaaaaaaaaaaalAdfdkffjdk;fjksda;fj;aaaaaaaaaaaaaaaaaaaaaaaaaaaaalAdfdkffjdk;fjksda;fj;aaaaaaaaaaaaaaaaaaaaaaaaaaaaalAdfdkffjdk;fjksda;fj;aaaaaaaaaaaaaaaaaaaaaaaaaaaaal
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7
Refinery : Performance is in Better Shape$/Bbl YTD,07 YTD,06
95/DB 14.55 11.74
GO/DB 16.72 15.22
FO/DB (10.40) (12.69)
Q4Q4Q4Q4Q4Q4Q4Q4 YTDYTDYTDYTDYTDYTDYTDYTD
2007200720072007 2006200620062006 2007200720072007 2006200620062006
M.Baht $/BBL M.Baht $/BBL M.Baht $/BBL M.Baht $/BBL
EBITDA +1,507 (906) +3,768 +1,141
� Base GRM 989 3.88 69 0.33 3,033 3.13 1,877 2.01
� Improvement Programs - 0.00 41 0.19 15 0.02 295 0.32
� GRM Hedging (117) (0.46) (6) (0.03) 47 0.04 681 0.73
� Inventory Gain / (Loss) 1,027 4.03 (1,048) (4.98) 1,803 1.85 (655) (0.70)
� Inventory Write Down - - 295 1.40 54 0.06 (55) (0.06)
Total GRMTotal GRMTotal GRMTotal GRM 1,8991,8991,8991,899 7.467.467.467.46 (649)(649)(649)(649) (3.09)(3.09)(3.09)(3.09) 4,9524,9524,9524,952 5.105.105.105.10 2,1432,1432,1432,143 2.292.292.292.29
� Other Income 9 0.04 16 0.08 128 0.13 42 0.04
� Expenses (401) (1.57) (273) (1.30) (1,312) (1.35) (1,044) (1.12)
� Adjusted EBITDAAdjusted EBITDAAdjusted EBITDAAdjusted EBITDA +480+480+480+480 (153)(153)(153)(153) +1,911+1,911+1,911+1,911 +1,851+1,851+1,851+1,851
Crude Run (KBD) 68 45 66 56Net Sale (KBD) 81 62 77 67
3.42 0.50 3.19 3.05
8
0000
10101010
20202020
30303030
40404040
50505050
60606060
70707070
80808080
90909090
100100100100
2004200420042004 2005200520052005 2006200620062006 2007200720072007
MaxMaxMaxMax MinMinMinMin CloseCloseCloseClose
0
10
20
30
40
50
60
70
80
90
100
2004 2005 2006 2007
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Crude Intake Base GRM
(1000)(1000)(1000)(1000)
0000
1000100010001000
2000200020002000
3000300030003000
4000400040004000
Q1Q1Q1Q1 Q2Q2Q2Q2 Q3Q3Q3Q3 Q4Q4Q4Q4 YTDYTDYTDYTD
2007200720072007
2006200620062006
c
Du
ba
i P
ric
eD
ub
ai
Pri
ce
Du
ba
i P
ric
eD
ub
ai
Pri
ce
Du
ba
i P
ric
eD
ub
ai
Pri
ce
Du
ba
i P
ric
eD
ub
ai
Pri
ce
EB
ITD
A o
f R
efi
ne
ryE
BIT
DA
of
Re
fin
ery
EB
ITD
A o
f R
efi
ne
ryE
BIT
DA
of
Re
fin
ery
EB
ITD
A o
f R
efi
ne
ryE
BIT
DA
of
Re
fin
ery
EB
ITD
A o
f R
efi
ne
ryE
BIT
DA
of
Re
fin
ery
U$/BblU$/BblU$/BblU$/Bbl
: Million Baht: Million Baht: Million Baht: Million Baht
Ad
just
ed 1
,911
Ad
just
ed 1
,851
c
Cru
de
In
tak
e &
GR
MC
rud
e I
nta
ke
& G
RM
Cru
de
In
tak
e &
GR
MC
rud
e I
nta
ke
& G
RM
Cru
de
In
tak
e &
GR
MC
rud
e I
nta
ke
& G
RM
Cru
de
In
tak
e &
GR
MC
rud
e I
nta
ke
& G
RM KBDKBDKBDKBD U$/BblU$/BblU$/BblU$/Bbl
Refinery : Performance is in Better Shape
Les
s F
uel
oil
dem
and
fro
m E
GA
T
Co
Co
Co
Co
-- -- cra
ck
ing
wit
h
cra
ck
ing
wit
h
cra
ck
ing
wit
h
cra
ck
ing
wit
h T
ha
ioil
Th
aio
ilT
ha
ioil
Th
aio
il
FO
pri
ce
Su
bst
anti
al r
edu
cti
on
Exp
ort
Fu
el o
il
to C
hin
a m
arke
t
9(2)(2)(2)(2)
(1)(1)(1)(1)
1111
2222
3333
4444
Jan Apr Jul Oct
60606060
70707070
80808080
90909090
100100100100
110110110110
120120120120
Marketing : MKM Squeezed in 2007GasoilGasoilGasoilGasoilGasoilGasoilGasoilGasoil Price & MKMPrice & MKMPrice & MKMPrice & MKMPrice & MKMPrice & MKMPrice & MKMPrice & MKMG
as
oil
Ga
so
ilG
as
oil
Ga
so
ilP
ric
eP
ric
eP
ric
eP
ric
eH
SD
HS
DH
SD
HS
DM
ak
eti
ng
Ma
ke
tin
gM
ak
eti
ng
Ma
ke
tin
gM
arg
inM
arg
inM
arg
inM
arg
inU
$/B
bl
U$
/Bb
lU
$/B
bl
U$
/Bb
lB
ah
t/L
ite
rB
ah
t/L
ite
rB
ah
t/L
ite
rB
ah
t/L
ite
r
2007200720072007 2006200620062006
2007200720072007 2006200620062006
10(2)(2)(2)(2)
(1)(1)(1)(1)
1111
2222
3333
4444
Jan Apr Jul Oct
50505050
60606060
70707070
80808080
90909090
100100100100
110110110110
Marketing : MKM Squeezed in 2007
2007200720072007 2006200620062006
2007200720072007 2006200620062006
UNL95UNL95UNL95UNL95UNL95UNL95UNL95UNL95 Price & MKMPrice & MKMPrice & MKMPrice & MKMPrice & MKMPrice & MKMPrice & MKMPrice & MKMU
NL
95
l Pri
ce
UN
L9
5l P
ric
eU
NL
95
l Pri
ce
UN
L9
5l P
ric
eU
LG
95
UL
G9
5U
LG
95
UL
G9
5M
ak
eti
ng
Ma
ke
tin
gM
ak
eti
ng
Ma
ke
tin
gM
arg
inM
arg
inM
arg
inM
arg
inU
$/B
bl
U$
/Bb
lU
$/B
bl
U$
/Bb
lB
ah
t/L
ite
rB
ah
t/L
ite
rB
ah
t/L
ite
rB
ah
t/L
ite
r
11
UNIT:BAHT/LITRE
EX-REFIN. TAX M. TAX OIL CONSV. WHOLESALE VAT WS&VAT MARKETING VAT RETAIL
(AVG) B./LITRE B./LITRE FUND (1) FUND PRICE(WS) MARGIN PRICE
ULG 95R ; UNLULG 95R ; UNLULG 95R ; UNLULG 95R ; UNL 21.8555 3.6850 0.3685 4.0000 0.0700 29.9790 2.0985 32.0775 0.7593 0.0532 32.89
GASOHOL95GASOHOL95GASOHOL95GASOHOL95 21.3905 3.3165 0.3317 0.3000 0.0630 25.4016 1.7781 27.1797 1.5984 0.1119 28.89
ULG 91R ; UNLULG 91R ; UNLULG 91R ; UNLULG 91R ; UNL 21.4375 3.6850 0.3685 3.3000 0.0700 28.8610 2.0203 30.8813 0.6624 0.0464 31.59
GASOHOL91GASOHOL91GASOHOL91GASOHOL91 21.2058 3.3165 0.3317 -0.2000 0.0630 24.7169 1.7302 26.4471 1.5354 0.1075 28.09
H-DIESEL(0.035%S)H-DIESEL(0.035%S)H-DIESEL(0.035%S)H-DIESEL(0.035%S) 23.9292 2.3050 0.2305 0.7000 0.0700 27.2347 1.9064 29.1411 0.1859 0.0130 29.34
Biodiesel (B5)Biodiesel (B5)Biodiesel (B5)Biodiesel (B5) 23.6481 2.1898 0.2190 -0.1000 0.0665 26.0234 1.8216 27.8450 0.4626 0.0324 28.34
PRICE STRUCTURE OF PETROLEUM PRODUCT IN BANGKOKPRICE STRUCTURE OF PETROLEUM PRODUCT IN BANGKOKPRICE STRUCTURE OF PETROLEUM PRODUCT IN BANGKOKPRICE STRUCTURE OF PETROLEUM PRODUCT IN BANGKOK28-Dec-0728-Dec-0728-Dec-0728-Dec-07
Marketing margin was bad but Bio-fuel is better than normal grade
Source : EPPO
12
0
5
10
15
20
25
30
35
40
45
50
55
0
100
200
300
400
500
600
700
800
Highlight of Marketing Achievement in 2007
1st rank market share of Biodiesel B5
Ref : Channel service station for Year 2007
Increase Biodiesel B5 outlet from 200 stations in 2006 to be 700 stations in 2007
Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4
2006 2007
Vol, M.liter/Month (Bar) No. Stations (Line)
BCPBCPBCPBCP
76.8%76.8%76.8%76.8%
PTTPTTPTTPTT
23.1%23.1%23.1%23.1%
0
2
4
6
8
10
12
14
16
18
20
22
24
0
50
100
150
200
250
300
350
400
450
500
Increase Gasohol 91 outlet
from 250 stations in 2006 to be 500 stations in 2007
Vol, M.liter/Month (Bar) No. Stations (Line)
Total sale increase 5.2%
Q1 Q2 Q3 Q4 Q1 QQ1 Q2 Q3 Q4 Q1 QQ1 Q2 Q3 Q4 Q1 QQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2 Q3 Q4 2 Q3 Q4 2 Q3 Q4
2006 2007
1,000
1,500
2,000
2,500
1st Qtr 2nd Q tr1,000
1,050
1,100
1,150
1,200
Total Sale
No. ofServiceStation
20072006
Vol, M.liter (Bar) No. Stations (Line)
13
Marketing : MKM Squeezed in 2007
M.Baht St./L. M.Baht St./L. M.Baht St./L. M.Baht St./L.
EBITDA (209) +193 +209 +472
� Retail Margin -34 -6 305 61 509 24 682 33
� Industrial Margin 66 34 104 44 274 32 460 50
� Lube Margin 34 949 13 433 115 826 66 559
Total MKMTotal MKMTotal MKMTotal MKM 66666666 9999 422422422422 57575757 898898898898 30303030 1,2081,2081,2081,208 41414141
� Other Income 132 17 103 14 500 17 435 15
� Operating Expenses (407) (54) (332) (45) (1,189) (40) (1,170) (40)
� Sale Volume KBD ML/MO KBD ML/MO KBD ML/MO KBD ML/MO
- Retail Vol. 39 189 35 171 37 179 35 170- Industrial Vol. 13 64 16 77 15 72 16 78
Total 52 254 51 248 52 250 51 248
4 55 26 39
Q4Q4Q4Q4Q4Q4Q4Q4 YTDYTDYTDYTDYTDYTDYTDYTD
2007200720072007 2006200620062006 2007200720072007 2006200620062006
14
Sales Volume & Thruput per Service Station
2006200620062006 4Q20074Q20074Q20074Q2007 % Growth% Growth% Growth% Growth
(Million Liter per Month)Sales VolumeSales VolumeSales VolumeSales Volume
- Dealer 88.82 86.20 -2.95% - Bangchak Green-Net - Bangchak Green-Net - Bangchak Green-Net - Bangchak Green-Net 39.0539.0539.0539.05 52.9552.9552.9552.95 35.60%35.60%35.60%35.60%
- Co-op 42.33 50.52 19.36%Total 170.19 189.67
(K.Liter/Month/Station)Thruput Per StationThruput Per StationThruput Per StationThruput Per Station
- Dealer 220.39 228.65 3.74% - Bangchak Green-Net - Bangchak Green-Net - Bangchak Green-Net - Bangchak Green-Net 235.23235.23235.23235.23 326.85326.85326.85326.85 38.95%38.95%38.95%38.95%
- Co-op 79.71 95.32 19.59%Total 154.72 177.43
15
32.6 %32.6 %
16.0 %17.3 %
12.7 %12.7 %
8.4 %8.4 %
OthersOthers
13.0 %13.0 %
34.3 %34.3 %
15.4 %16.9 %
12.1 %12.1 %
8.3 %8.3 %
OthersOthers
13.0 %13.0 %
Y2006
Source : DOEB, MOESource : DOEB, MOESource : DOEB, MOESource : DOEB, MOE
6% Market Share increasing in Service Station
4th RankY2007
16
EBITDA 1,298 (712) 3,977 1,613
� Depreciation & Amortization (204) (211) (819) (822)
� Net Interest Expense (121) (122) (462) (573)
� FX-Other Gain (Loss) (21) 39 (74) (81)
� Impairment Adjustment (41) 3 (41) 4
� � � � Profit / (Loss) before TaxProfit / (Loss) before TaxProfit / (Loss) before TaxProfit / (Loss) before Tax 911911911911 (1,003)(1,003)(1,003)(1,003) 2,5812,5812,5812,581 141141141141
� Tax (510) 335 (890) 107
Net Profit (Loss)Net Profit (Loss)Net Profit (Loss)Net Profit (Loss) 401401401401 (669)(669)(669)(669) 1,6911,6911,6911,691 248248248248
- -
- INVENTORY GAIN / (LOSS) 1,027 (1,048) 1,803 (655)
- INVENTORY WRITE DOWN - 295 54 (54)
Adjusted EBITDA 271 41 2,120 2,323
Company Performance FY2007
: Million Baht: Million Baht: Million Baht: Million Baht
*
* Included tax reversion from year 2006 Baht 102 million to suspense for RD’s verdict
Q4Q4Q4Q4Q4Q4Q4Q4 YTDYTDYTDYTDYTDYTDYTDYTD
2007200720072007 2006200620062006 2007200720072007 2006200620062006
17
-20%
0%
20%
40%
60%
80%
100%
120%
1 2 3
Refinery
Marketing
Performance Ratio Between Business Unit in term of EBITDA
-20%
0%
20%
40%
60%
80%
100%
120%
1 2 3
Refinery
Marketing
Y2005 Y2006 Y2007
EBITDA (EBITDA (EBITDA (EBITDA (MBtMBtMBtMBt.).).).) 4,6204,6204,6204,620 1,6131,6131,6131,613 3,9773,9773,9773,977
Adjusted EBITDA (Adjusted EBITDA (Adjusted EBITDA (Adjusted EBITDA (MBtMBtMBtMBt.).).).) 2,2612,2612,2612,261 2,3232,3232,3232,323 2,1202,1202,1202,120
18
PQI &PQI &PQI &PQI &PQI &PQI &PQI &PQI &Related Project Related Project Related Project Related Project Related Project Related Project Related Project Related Project
19
USD/bbl
10
8
6
4
2
0
Product Quality Improvement Project (“PQI”)
What is PQI ?What is PQI ? Result from PQIResult from PQI
CounterpartiesCounterparties
• PQI is the Investment in “Hydrocracking Unit” and other
supporting units
• These units enable BCP to turn current fuel oil output to
be gas oil without increasing the capacity
• Feasibility Study UOP LLC & Foster Wheeler Corporation
• Technology License UOP LLC• EPC Contractor CTCI Corporation• Project MgntConsultant Foster Wheeler Corporation
• Investment Cost USD 378 million (Included Contingency 30 MUSD)
• Construction Period May’06 - Year end 2008
Investment & ConstructionInvestment & Construction
MEME FEFEMEME FEFE
CurrentSimple Refinery
AfterPQI Completion
EnhanceEnhance
Crude MixCrude Mix
FlexibilityFlexibility
Less FOLess FO
OutputOutput
PortionPortion
SurgeSurge
GRMGRM
CurrentSpread
CurrentSpread
FeasibilitySpread
LPG, 3%
LPG, 3%
LPG, 3%
LPG, 3%
Diesel, Diesel, Diesel, Diesel,
35%35%35%35%ULG, 18%ULG, 18%ULG, 18%ULG, 18%
Jet Fuel, Jet Fuel, Jet Fuel, Jet Fuel,
11%11%11%11%
Fuel Oi l, Fuel Oi l, Fuel Oi l, Fuel Oi l,
33%33%33%33%
LPG, 5%
LPG, 5%
LPG, 5%
LPG, 5%
Diesel , Diesel , Diesel , Diesel ,
52%52%52%52%
ULG, 25%ULG, 25%ULG, 25%ULG, 25%
Jet Fuel , Jet Fuel , Jet Fuel , Jet Fuel ,
9%9%9%9%
Fuel Oi l, Fuel Oi l, Fuel Oi l, Fuel Oi l,
9%9%9%9%
IncreaseIncrease
Crude Crude
RunRun
~ 70 KBD (58%) ~ 100 KBD (83%)
20
-
2,000
4,000
6,000
8,000
10,000
12,0002003
2004
2005
2006
2007
2008F
2009F
2010F
2011F
THB mil
-
2
4
6
8
10
12
USD/bblEBITDA
EBITDA (feasibility study)
GRM
GRM (feasibility study)
“Return from investment competitive in long-term, hence BCP decided to pursue PQI”
Note: (1) EBITDA 2008F-2011F based on GO/DB USD15.21/bbl and FO/DB USD -12.00/bbl
(2)EBITDA (feasibility study) 2008F-2011F based on GO/DB USD10.5/bbl and FO/DB USD -3/bbl
Both cases based on gradually growing crude run from 65 KBSD before COD after that run max 100 KBSD
(1)
(2)
Note : Not included inventory effect
Prosperous Return from PQI
21
No. of Paid-up Shares 691 Million Shares
No. of Paid-up Shares 1,119 Million Shares
No. of Fully Dilution
1,406 Million Shares
L/T Loan 8,400L/T Loan 8,400
FI 2,064FI 2,064
PTT 3,930PTT 3,930
Debt Equity Operation
Cash 390Cash 390
PTT(CD) 585PTT(CD) 585
Total Sources of Fund 15,369
Unit : THB Million
• Financial closed on May 16, 2006
• Syndicated loan from 3 local banks
• PTT&FI purchase common share at price Baht 14.00 per share
• PTT became to major shareholder with 29.75%
PTT, 30%PTT, 30%PTT, 30%PTT, 30%
MOF, 11%MOF, 11%MOF, 11%MOF, 11% Public, Public, Public, Public,
59%59%59%59%
PTT, 27%PTT, 27%PTT, 27%PTT, 27%
MOF, 9%MOF, 9%MOF, 9%MOF, 9%Pub lic, Pub lic, Pub lic, Pub lic,
64%64%64%64%
FullyFullyFullyFullyDilutedDilutedDilutedDiluted
PQI Fund Raising
1,119 1,119 1,119 1,119 1,119 1,119 1,119 1,119 M.SharesM.SharesM.SharesM.SharesM.SharesM.SharesM.SharesM.Shares
1,406 1,406 1,406 1,406 1,406 1,406 1,406 1,406 M.SharesM.SharesM.SharesM.SharesM.SharesM.SharesM.SharesM.Shares
PQI Fund Raising
BCP’s Share Capital Structure
After all Quasi-Equity Convert
22
0
10
20
30
40
50
60
70
80
90
100
110
Project Month & Accumulate %Project Month & Accumulate %Project Month & Accumulate %Project Month & Accumulate %
Pro
gre
ss
%P
rog
res
s %
Pro
gre
ss
%P
rog
res
s %
Actual 1.0 2.5 3.0 5.6 8.0 8.7 9.7 11.2 15.0 18.5 20.9 23.4 30.2 34.1 39.6 44.3 50.8 55.5 61.4 68.2 73.5
Plan 61.4 65.5 70.3 78.8 85.7 90.1 93.2 96.3 97.5 98.1 98.6 99.3 99.9 100.0
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
All LLIs delivery
to siteReady for piling
and civil work
Piping and Instrument
Diagram for
construction
Start of Distributed Control
System factory acceptance test Substation Power
no.5 energizedMechanical
Completion
Provisional
Acceptance
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Month
Q4
2006 2007 2008
PQI Progress (E/P/C)
23
Cogeneration Power Plant
Stability of Electricity�s Plant System is increased Increase efficiency of public utility system using energy
Save money of building reserve boiler about 2.1 M$
Expense decreasing from producing and buying electricity and stream
Saving from using Natural Gas instead of Fuel Oil
BenefitBenefit
� Since PQI Project will has done, electricity and
steam demand will be increased.
15.7
12.1
3.6
76
Change
+
29.1
20.9
8.2
13.4
8.8
4.6
Electricity Demand (MW)
By ourselves
Buy from Metropolitan
Electricity Authority
15680
Steam Demand (Ton/Hour)
By ourselves
After PQI
Project will
has done
CurrentDemand @ Crude Run 100 KBD
about 1,000 square metersSpace
2Q- 2009COD
90 tons per hourSteam Capacity
After 25 years then transfer ownership to BCPOperate Period
Vary to CPI and GPI,CPI = Consumer Price IndexGPI = Gas Price Index
Steam Price
MEA minusElectricity Price
19.7 MWElectricity Capacity
HOA SummaryHOA Summary
STRICTLY PRIVATE & CONFIDENTIAL
24
More than Bt. 300 Million/Yr Saving from Cogeneration Project
945
-
413
(2.6 Baht/KWH)
532
(724 Baht/Ton)
New (B)
(Co-Gen Power Plant)Saving (B)-(A)
Existing (A)
(Thermal Power Plant
+Package Boiler)
(107)639
(871 Baht/Ton)� Steam cost
(337)1,282Total
(23)23
(0.14 Baht/KWH)
� Maintenancecost
(207)620
(3.9 Baht/KWH)� Electrical cost
(Million Baht/Year)(Million Baht/Year)(Million Baht/Year)(Million Baht/Year)
1/ Base on Fuel Oil Ex.Refinery Price 56 Usd/BBL (@Sep 2007)
2/ Steam Production 90 Ton/hr
3/ Electrical Production 19.7 MW Run 340 Days
* Roughly estimate, base on assumption
1/
2/
3/
Sa
vin
g f
rom
Co
-ge
n
Illustration Only
STRICTLY PRIVATE & CONFIDENTIAL
25
Natural Gas (NG) for Plant Feed
Existing Plant : Use fuel oil (FO) and fuel gas (FG) as plant feed
NG Project : Will replace FO by NG for feed instead
Concept
- NG available from pipeline used for Cogeneration project
- Use NG and sell FO
- Investment cost of NG project is less than Bt. 100 million- Saving from this project more than Bt. 200 million
Sa
vin
g f
rom
NG
1,898
279 Baht/MMBTU
19,968 MMBTU/Day
New (D)
(Use NG)
Saving (D)-(C)Existing (C)
(Use FO)
FO 3.3 KBDEnergy 1/
Equivalent
(245)2,143Total
56 $/BblEnergy Price
(Million Baht/Year)(Million Baht/Year)(Million Baht/Year)(Million Baht/Year)
1/ Run at 100 KBD 340 days per yearRoughly estimate, base on assumption
Energy Requirement = 19,968 MMBTU / Day
Illustration Only
26
2008 : 2008 : 2008 : 2008 : 2008 : 2008 : 2008 : 2008 : Another YearAnother YearAnother YearAnother YearAnother YearAnother YearAnother YearAnother Yearof Challenging of Challenging of Challenging of Challenging of Challenging of Challenging of Challenging of Challenging
27
We Concern
• PQI Focusing
• Normal Operation
�Oil Price Situation
�Export Market
�Crude Selection
�GRM
�FX Appreciation
�Marketing Margin Squeeze
�Marketing Market Share
• Looking Forward to Value Creation
28
PQI Focusing
ConstructionConstruction
• LP Testing LP Testing LP Testing LP Testing
• Crude PlanningCrude PlanningCrude PlanningCrude Planning
• Tank/Barge FacilitiesTank/Barge FacilitiesTank/Barge FacilitiesTank/Barge Facilities
• Plant ReliabilityPlant ReliabilityPlant ReliabilityPlant Reliability
• RecruitmentRecruitmentRecruitmentRecruitment
• TrainingTrainingTrainingTraining
• Working CapitalWorking CapitalWorking CapitalWorking Capital
CommissioningCommissioning
DistributionDistribution
30% 30% 30% 30% OfftakeOfftakeOfftakeOfftake
AgreementAgreementAgreementAgreementbybybyby
PTTPTTPTTPTT
Production (KBD) Production (KBD) Production (KBD) Production (KBD) 100100100100100100100100
60% 60% 60% 60% ThroughThroughThroughThrough
ourourourourExistingExistingExistingExistingChannelChannelChannelChannel
10% 10% 10% 10% AnotherAnotherAnotherAnother----
ChannelChannelChannelChannel
& Use/ & Use/ & Use/ & Use/ LossLossLossLoss
29
45454545
50505050
55555555
60606060
65656565
70707070
75757575
80808080
85858585
90909090
95959595
100100100100
105105105105
110110110110
115115115115
120120120120
125125125125GO 0.5%S
UNL 95
Dubai
????
$$$$/BBL/BBL/BBL/BBL
J F M J F M J F M J F M A M J J A S O A M J J A S O A M J J A S O A M J J A S O N D J F M A N D J F M A N D J F M A N D J F M A M J J A S O N M J J A S O N M J J A S O N M J J A S O N DDDD’’’’07070707 ‘‘‘‘08080808
* Based on Morgan Stanley, Mitsui & Lehman forward price as of Mar. 3 ‘08 Except Mar. ‘08 Price is actual month to date (1-3).
95.07
119.28
110.28
how is the 2008 oil price
Oil Price Situation
30
NEGATIVE FACTORSNEGATIVE FACTORSNEGATIVE FACTORSNEGATIVE FACTORSPOSITIVE FACTORSPOSITIVE FACTORSPOSITIVE FACTORSPOSITIVE FACTORS
2008 Oil Price Trend Analysis
• World Oil DemandWorld Oil DemandWorld Oil DemandWorld Oil Demand
• World Oil SupplyWorld Oil SupplyWorld Oil SupplyWorld Oil Supply
• New / Expanded RefineriesNew / Expanded RefineriesNew / Expanded RefineriesNew / Expanded Refineries
• Speculator / Hedge FundSpeculator / Hedge FundSpeculator / Hedge FundSpeculator / Hedge Fund
• Weak US. CurrencyWeak US. CurrencyWeak US. CurrencyWeak US. Currency (Currency Impact on (Currency Impact on (Currency Impact on (Currency Impact on OPEC Basket Price)OPEC Basket Price)OPEC Basket Price)OPEC Basket Price)
• EconomicEconomicEconomicEconomic (Slowdown(Slowdown(Slowdown(Slowdown esp. USA. From esp. USA. From esp. USA. From esp. USA. From
SubSubSubSub----prime Mortgages)prime Mortgages)prime Mortgages)prime Mortgages)• High level of inventoryHigh level of inventoryHigh level of inventoryHigh level of inventory (esp. USA)(esp. USA)(esp. USA)(esp. USA)
• Political TensionPolitical TensionPolitical TensionPolitical Tension
• Storms / WeatherStorms / WeatherStorms / WeatherStorms / Weather
31
World Oil Supply/Demand
86.5 ????85.6World Supply
87.7
49.5
38.2
86.0
49.2
36.8
World Demand
OECD Demand
Non-OECD Demand
2008(F)2007Unit : MBD
50.6
37.1
35.9 ????
49.7
36.3
35.9
Non-OPEC
Call on OPEC Inc. NGL
OPEC Production Inc. NGL
-1.2-0.4Implied Stockbuild
Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008
32
World Oil Demand
Asia/Middle East main demand driversAsia/Middle East main demand driversAsia/Middle East main demand driversAsia/Middle East main demand driversAsia/Middle East main demand driversAsia/Middle East main demand driversAsia/Middle East main demand driversAsia/Middle East main demand drivers
Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008
33
World Oil Supply
NonNonNonNonNonNonNonNon--------OPEC Supply Growth Lead by FSUOPEC Supply Growth Lead by FSUOPEC Supply Growth Lead by FSUOPEC Supply Growth Lead by FSUOPEC Supply Growth Lead by FSUOPEC Supply Growth Lead by FSUOPEC Supply Growth Lead by FSUOPEC Supply Growth Lead by FSU
Global Supply GrowthGlobal Supply GrowthGlobal Supply GrowthGlobal Supply Growth((((mb/dmb/dmb/dmb/d))))
2006200620062006 0.80 1.0%0.80 1.0%0.80 1.0%0.80 1.0%2007200720072007 0.17 0.2%0.17 0.2%0.17 0.2%0.17 0.2%2008200820082008 0.97 1.1%0.97 1.1%0.97 1.1%0.97 1.1%
Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008Source : IEA@ 13 FEB 2008
34
OPEC Crude Production [OPEC Crude Production [OPEC Crude Production [OPEC Crude Production [OPEC Crude Production [OPEC Crude Production [OPEC Crude Production [OPEC Crude Production [mbpdmbpdmbpdmbpdmbpdmbpdmbpdmbpd]]]]]]]]
Source : PVM
World Oil Supply
35
Refinery
Source : PVM
Refinery Capacity Expansion 2007Refinery Capacity Expansion 2007Refinery Capacity Expansion 2007Refinery Capacity Expansion 2007Refinery Capacity Expansion 2007Refinery Capacity Expansion 2007Refinery Capacity Expansion 2007Refinery Capacity Expansion 2007--------2011 IEA 2011 IEA 2011 IEA 2011 IEA 2011 IEA 2011 IEA 2011 IEA 2011 IEA vsvsvsvsvsvsvsvs PVM [PVM [PVM [PVM [PVM [PVM [PVM [PVM [mbpdmbpdmbpdmbpdmbpdmbpdmbpdmbpd]]]]]]]]
36
Refinery
World Crude Distillation Capacity Increases by Region : MBDWorld Crude Distillation Capacity Increases by Region : MBDWorld Crude Distillation Capacity Increases by Region : MBDWorld Crude Distillation Capacity Increases by Region : MBDWorld Crude Distillation Capacity Increases by Region : MBDWorld Crude Distillation Capacity Increases by Region : MBDWorld Crude Distillation Capacity Increases by Region : MBDWorld Crude Distillation Capacity Increases by Region : MBD
Source : PVM
0.6 0.5
1.4
0.25
0.9
0.30.65
0.2 0.25
37
MBDMBDMBDMBDMBDMBDMBDMBD
0000
10101010
20202020
30303030
40404040
50505050
60606060
70707070
80808080
90909090
100100100100
110110110110
120120120120
2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012 2013201320132013 2014201420142014 2015201520152015
Refinery CapacityRefinery CapacityRefinery CapacityRefinery Capacity Additional CapacityAdditional CapacityAdditional CapacityAdditional Capacity
Demand Growth 1%Demand Growth 1%Demand Growth 1%Demand Growth 1% Demand Grow th 3%Demand Grow th 3%Demand Grow th 3%Demand Grow th 3%
Source : Analyst Team: BP statistical report 2007, IEA Nov. Source : Analyst Team: BP statistical report 2007, IEA Nov. Source : Analyst Team: BP statistical report 2007, IEA Nov. Source : Analyst Team: BP statistical report 2007, IEA Nov. ’’’’07 report, PVM Nov. 07 report, PVM Nov. 07 report, PVM Nov. 07 report, PVM Nov. ’’’’07.07.07.07.
World CDU Capacity Expansion vs. Demand Growth
87.2487.2487.2487.2487.2487.2487.2487.24 88.2988.2988.2988.2988.2988.2988.2988.29 89.4489.4489.4489.4489.4489.4489.4489.44 91.5491.5491.5491.5491.5491.5491.5491.54 92.7492.7492.7492.7492.7492.7492.7492.74 94.4994.4994.4994.4994.4994.4994.4994.49 94.0094.0094.0094.0094.0094.0094.0094.00 96.0996.0996.0996.0996.0996.0996.0996.09 96.5996.5996.5996.5996.5996.5996.5996.59 96.8996.8996.8996.8996.8996.8996.8996.89
38
MBDMBD
0
5
10
15
20
25
30
35
2006 2007 2008 2009 2010 2011
Asic Pacific Capacity Additional Capacity Demand 1% Demand 3%
Source : Reuters, Source : Reuters, Source : Reuters, Source : Reuters, PlattsPlattsPlattsPlatts, MS ,GS as of 07 Sep. 2007 , MS ,GS as of 07 Sep. 2007 , MS ,GS as of 07 Sep. 2007 , MS ,GS as of 07 Sep. 2007
2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011
AsiaAsiaAsiaAsia 23.923.923.923.9 24.524.524.524.5 25252525 26.426.426.426.4 26.726.726.726.7
Additional CapacityAdditional CapacityAdditional CapacityAdditional Capacity 0.60.60.60.6 0.50.50.50.5 1.41.41.41.4 0.30.30.30.3 0.90.90.90.9
Demand 1%Demand 1%Demand 1%Demand 1% 24.924.924.924.9 25.125.125.125.1 25.425.425.425.4 25.625.625.625.6 25.925.925.925.9
Demand 3%Demand 3%Demand 3%Demand 3% 25.325.325.325.3 26.126.126.126.1 26.926.926.926.9 27.727.727.727.7 28.528.528.528.5
Asia Oil Refining Addition and Oil Demand/Supply Growth
39
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
45
50
55
60
65
70
75
80
85
90
95
100
105Future & Options
WTI
$/B$/B$/B$/B$/B$/B$/B$/BBLBLBLBLBLBLBLBLBBBBBBBBBL BL BL BL BL BL BL BL ((((((((,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000))))))))
J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A S O N D S O N D S O N D S O N D S O N D S O N D S O N D S O N D J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A J F M A M J J A S O N DS O N DS O N DS O N DS O N DS O N DS O N DS O N D’’’’’’’’0707070707070707 ‘‘‘‘‘‘‘‘0808080808080808
Long 158 MB Long 158 MB Long 158 MB Long 158 MB (+23 MB) at 26/02/08(+23 MB) at 26/02/08(+23 MB) at 26/02/08(+23 MB) at 26/02/08
Speculators Effect (NYMEX Crude Futures & Options)
40
All USA. oil stock level are moving in
comfortable level esp. gasoline stock
USA. Oil Stocks
41
WTIWTIWTIWTI BrentBrentBrentBrent DubaiDubaiDubaiDubai
Barclays CapitalBarclays CapitalBarclays CapitalBarclays Capital 87.4087.4087.4087.40 85.8085.8085.8085.80 81.4081.4081.4081.40
BNP Par ibasBNP Par ibasBNP Par ibasBNP Par ibas 88.8088.8088.8088.80 87.0087.0087.0087.00 82.8082.8082.8082.80
CitigroupCitigroupCitigroupCitigroup 80.0080.0080.0080.00 80.0080.0080.0080.00 74.0074.0074.0074.00
Deutsche BankDeutsche BankDeutsche BankDeutsche Bank 80.0080.0080.0080.00 80.0080.0080.0080.00 74.0074.0074.0074.00
EIAEIAEIAEIA 84.7384.7384.7384.73 ---- 78.7378.7378.7378.73
Economist Intelligence UnitEconomist Intelligence UnitEconomist Intelligence UnitEconomist Intelligence Unit 79.5679.5679.5679.56 78.0078.0078.0078.00 73.5673.5673.5673.56
ESAIESAIESAIESAI 78.9078.9078.9078.90 78.1078.1078.1078.10 72.9072.9072.9072.90
Goldman SachsGoldman SachsGoldman SachsGoldman Sachs 95.4895.4895.4895.48 93.9893.9893.9893.98 89.4889.4889.4889.48
INGINGINGING 76.0076.0076.0076.00 74.0074.0074.0074.00 70.0070.0070.0070.00
JP MorganJP MorganJP MorganJP Morgan 65.0065.0065.0065.00 64.0064.0064.0064.00 59.0059.0059.0059.00
LehmanLehmanLehmanLehman 84.0084.0084.0084.00 84.0084.0084.0084.00 78.0078.0078.0078.00
Merr ill LynchMerr ill LynchMerr ill LynchMerr ill Lynch 82.0082.0082.0082.00 82.0082.0082.0082.00 76.0076.0076.0076.00
Morgan StanleyMorgan StanleyMorgan StanleyMorgan Stanley 65.0065.0065.0065.00 64.0064.0064.0064.00 59.0059.0059.0059.00
SG CIBSG CIBSG CIBSG CIB 80.9080.9080.9080.90 80.4080.4080.4080.40 74.9074.9074.9074.90
Standard Char teredStandard Char teredStandard Char teredStandard Char tered 75.0075.0075.0075.00 74.0074.0074.0074.00 69.0069.0069.0069.00
UBSUBSUBSUBS 74.0074.0074.0074.00 74.0074.0074.0074.00 68.0068.0068.0068.00
2008200820082008
2008 Crude Oil Price Forecast Summary
Source : Analyst Team as of Jan. 2008.Source : Analyst Team as of Jan. 2008.Source : Analyst Team as of Jan. 2008.Source : Analyst Team as of Jan. 2008.
2008
WTI = 89-93
Brent = 87-91Dubai = 82-86
$/BBL
42
45454545
50505050
55555555
60606060
65656565
70707070
75757575
80808080
85858585
90909090
95959595
100100100100
105105105105
110110110110
115115115115
120120120120
125125125125GO 0.5%S
UNL 95
Dubai
$$$$/BBL/BBL/BBL/BBL
J F M J F M J F M J F M A M J J A S O A M J J A S O A M J J A S O A M J J A S O N D J F M A N D J F M A N D J F M A N D J F M A M J J A S O N M J J A S O N M J J A S O N M J J A S O N DDDD’’’’07070707 ‘‘‘‘08080808
* Based on Morgan Stanley, Mitsui & Lehman forward price as of Mar. 3 ‘08 Except Mar. ‘08 Price is actual month to date (1-3).
95.07
119.28
110.28
2008 Product Crack Spread Forecast
AVG. 2007DB = 68.3395 = 82.82GO = 84.96
Dubai PriceDubai PriceDubai PriceDubai Price = = = = 82 - 86
UNL 95 Crack= UNL 95 Crack= UNL 95 Crack= UNL 95 Crack= 12 - 14G.O. 0.5%S Crack = 16 G.O. 0.5%S Crack = 16 G.O. 0.5%S Crack = 16 G.O. 0.5%S Crack = 16 ---- 18181818
43
Where are Oil Price Headed
•• While demand remains buoyant, little chance to build While demand remains buoyant, little chance to build sufficient spare capacitysufficient spare capacity
•• Demand destruction has only been apparent in poorer Demand destruction has only been apparent in poorer countriescountries
•• US, Global slowdown may well curtail 2008/2009 demand US, Global slowdown may well curtail 2008/2009 demand growthgrowth
•• Prices will remain extremely volatilePrices will remain extremely volatile
•• Weak dollar will be a key factor in determining Weak dollar will be a key factor in determining ‘‘headlineheadline’’price.price.
•• Technology will play an increasingly important roleTechnology will play an increasingly important role
•• NGLsNGLs, alternative energy to grow., alternative energy to grow.
Oil will never be “cheap” again
44
Events &Events &Events &Events &Events &Events &Events &Events &Activities Activities Activities Activities Activities Activities Activities Activities
45
Board of the Year
2nd Consecutive Time
“Board of the Year for Exemplary Practices”2006/2007
December 11, 2007
2nd Consecutive Time
“Board of the Year for Exemplary Practices”2006/2007
December 11, 2007
46
Top CEO at the 6th CNBC Asia Leaders Awards
Asia Corporate Social Responsibility Asia Corporate Social Responsibility Asia Corporate Social Responsibility Asia Corporate Social Responsibility of the Yearof the Yearof the Yearof the Year
AnusornAnusornAnusornAnusorn SangnimnuanSangnimnuanSangnimnuanSangnimnuan
of The Bangchak Petroleum Plc. of The Bangchak Petroleum Plc. of The Bangchak Petroleum Plc. of The Bangchak Petroleum Plc.
for his outstanding contributions to for his outstanding contributions to for his outstanding contributions to for his outstanding contributions to education, the environment and education, the environment and education, the environment and education, the environment and
community development community development community development community development
47
Buy Used Cooking Oil 17 Baht/Liter
10101010101010101212121212121212
1313131313131313
14141414141414141616161616161616
1717171717171717
48
Launching Gasohol E20 Launching Gasohol E20 Launching Gasohol E20 Launching Gasohol E20
Ford Escape
Ford Focus
Every Honda car model 2008
New TIDA &
TEANA
49
Co-operative among PTT Group
PTT Group Ship Vetting (PTT, TOP, RRC, BCP, IRPC)
SrirachaSrirachaSrirachaSriracha Oil TankOil TankOil TankOil Tank
SBMSBMSBMSBM
CoCoCoCo----loadingloadingloadingloading
PQI TrainingPQI TrainingPQI TrainingPQI Training
Price Risk ManagementPrice Risk ManagementPrice Risk ManagementPrice Risk Management
CoCoCoCo----ProcurementProcurementProcurementProcurement
CoCoCoCo----Generation & Natural GasGeneration & Natural GasGeneration & Natural GasGeneration & Natural Gas
Crude SourcingCrude SourcingCrude SourcingCrude Sourcing
The Co-Generation Signing (Feb 25, 2008)
50
BCP’s Lab certified ISO 17025
51
Company VisitCompany VisitCompany VisitCompany Visit
Thank YouThank You
For more informationFor more information
www.bangchak.co.thwww.bangchak.co.th
Email : Email : IR@bangchak.co.thIR@bangchak.co.th0202--33545833354583
0202--33545873354587
AppendicesAppendices
54
Refining Production & Marketing Channel
Jobbers
ThaiAirways
Factories
Jobbers
BCP’s
Refinery
Business
BCPBCP’’ss
RefineryRefinery
BusinessBusiness
ImportImportCrudeCrude(25%)
LocalLocalCrudeCrude(75%)
Simple Ref inerySimple Ref ineryNameplate : 120 KBDNameplate : 120 KBD
Wholesalers
PTT
Wholesalers
Export
Wholesale Customers
Retail Customers (Service Stations) 45%
RefinedRefinedProductsProducts
BCP’s
Marketing
Business
BCPBCP’’ss
MarketingMarketing
BusinessBusiness
GRM
MKM
CrudeCost
Ex-RefPrice
WholesalePrice
RetailPrice
HSDHSD 35%35%MogasMogas 18%18%IK/JPIK/JP--1 1 11%11%LPGLPG 3%3%FOFO 33%33%
MKM
CO 261
JV 156
DODO 114
CO-OP 532
+ Non Oi l
Value Chain
40%
60%
2%
5%
33%
◄ Standard Size (Stations)
NGV StationLUBE
◄ Small Size (Stations)
Mogas91, GSH95, GSH91, HSD, B5, E20
Mart
Car Care
Coffee Shop & Other Facilities
Industrial Customers 15%
JP-1, FO, HSD, LPG
JP-1
FO, LPG, LUBE
HSD
Gas Station LPG
• Product slate weighted towards heavy fuel oil and diesel
• Investment in PQI to
turn from simple refinery to be a complex refinery
531
55
Logistic
Manufacturing
Sale
PR
Finance
HR
IT
Preparation Ensure PQI Completion� Maximize Capacity Readiness Task ForceMaximize Capacity Readiness Task ForceMaximize Capacity Readiness Task ForceMaximize Capacity Readiness Task Force� NG Supply SystemNG Supply SystemNG Supply SystemNG Supply System� DCS UpgradingDCS UpgradingDCS UpgradingDCS Upgrading� Additional LR Feed LineAdditional LR Feed LineAdditional LR Feed LineAdditional LR Feed Line� Boiler Preparation Boiler Preparation Boiler Preparation Boiler Preparation � Tank ReparationTank ReparationTank ReparationTank Reparation
� PTT/Supply Sale/Export PTT/Supply Sale/Export PTT/Supply Sale/Export PTT/Supply Sale/Export � Retail SaleRetail SaleRetail SaleRetail Sale� Industrial SaleIndustrial SaleIndustrial SaleIndustrial Sale� Depot FacilityDepot FacilityDepot FacilityDepot Facility
� IT System Implementation:IT System Implementation:IT System Implementation:IT System Implementation:Oil Record, L/P, SimulationOil Record, L/P, SimulationOil Record, L/P, SimulationOil Record, L/P, Simulation
� Lab Information SystemLab Information SystemLab Information SystemLab Information System� Management InformationManagement InformationManagement InformationManagement Information
� Road Show / External PRRoad Show / External PRRoad Show / External PRRoad Show / External PR� Internal PRInternal PRInternal PRInternal PR
� Crude Rec eiving FacilityCrude Rec eiving FacilityCrude Rec eiving FacilityCrude Rec eiving Facility� Barge FleetBarge FleetBarge FleetBarge Fleet� LP & SimulationLP & SimulationLP & SimulationLP & Simulation� NG Supply ContractNG Supply ContractNG Supply ContractNG Supply Contract� Fuel Own us ed PlanFuel Own us ed PlanFuel Own us ed PlanFuel Own us ed Plan� Crude Supply PlanCrude Supply PlanCrude Supply PlanCrude Supply Plan
� Working Capital PreparationWorking Capital PreparationWorking Capital PreparationWorking Capital Preparation� Loan ManagementLoan ManagementLoan ManagementLoan Management� Contingency Res erveContingency Res erveContingency Res erveContingency Res erve
� RecruitmentRecruitmentRecruitmentRecruitment� TrainingTrainingTrainingTraining� Office ExpansionOffice ExpansionOffice ExpansionOffice Expansion� Individual KPIIndividual KPIIndividual KPIIndividual KPI
56
PTTPTTPTTPTT
34.7%34.7%34.7%34.7%
SHELLSHELLSHELLSHELL
17.1%17.1%17.1%17.1%
ESSOESSOESSOESSO
11.3%11.3%11.3%11.3%
BCPBCPBCPBCP
22.0%22.0%22.0%22.0%
Ot hersOt hersOt hersOt hers
3.0%3.0%3.0%3.0%
J ETJ ETJ ETJ ET
5.4%5.4%5.4%5.4%
CTXCTXCTXCTX
6.5%6.5%6.5%6.5%
PTTPTTPTTPTT
31.0%31.0%31.0%31.0%
SHELLSHELLSHELLSHELL
17.6%17.6%17.6%17.6%
ESSOESSOESSOESSO
16.1%16.1%16.1%16.1%
BCPBCPBCPBCP
13.1%13.1%13.1%13.1%
CTXCTXCTXCTX
9.6%9.6%9.6%9.6%
JETJETJETJET
6.7%6.7%6.7%6.7%
OthersOthersOthersOthers
5.9%5.9%5.9%5.9%
PTTPTTPTTPTT
33.4%33.4%33.4%33.4%
SHELLSHELLSHELLSHELL
15.1%15.1%15.1%15.1%
ESSOESSOESSOESSO
18.0%18.0%18.0%18.0%
BCPBCPBCPBCP
12.5%12.5%12.5%12.5%
OthersOthersOthersOthers
6.5%6.5%6.5%6.5%
JETJETJETJET
6.7%6.7%6.7%6.7%
CT XCT XCT XCT X
7.8%7.8%7.8%7.8%BCPBCPBCPBCP
76.8%76.8%76.8%76.8%
PTTPTTPTTPTT
23.1%23.1%23.1%23.1%
GASOHOLGASOHOLGASOHOLGASOHOLMOGAS POOLMOGAS POOLMOGAS POOLMOGAS POOL HSD POOLHSD POOLHSD POOLHSD POOL Bio Diesel 5%Bio Diesel 5%Bio Diesel 5%Bio Diesel 5%
Yea
r 20
06Y
ear
2007
484 ML/Mo-0.8%
142 ML/Mo+35.5%
885 ML/Mo-1.2%
37 ML/Mo+33 ML/Mo
PTTPTTPTTPTT
31.9%31.9%31.9%31.9%
SHELLSHELLSHELLSHELL
17.3%17.3%17.3%17.3%
ESSOESSOESSOESSO
15.7%15.7%15.7%15.7%
BCPBCPBCPBCP
12.6%12.6%12.6%12.6%
OthersOthersOthersOthers
6.1%6.1%6.1%6.1%
JETJETJETJET
6.8%6.8%6.8%6.8%
CTXCTXCTXCTX
9.6%9.6%9.6%9.6%
PTTPTTPTTPTT
37.4%37.4%37.4%37.4%
SHELLSHELLSHELLSHELL
19.9%19.9%19.9%19.9%
ESSOESSOESSOESSO
7.8%7.8%7.8%7.8%
BCPBCPBCPBCP
23.2%23.2%23.2%23.2% CTXCTXCTXCTX
5.8%5.8%5.8%5.8%
JETJETJETJET
3.8%3.8%3.8%3.8%
Ot hersOt hersOt hersOt hers
2.1%2.1%2.1%2.1%
PTTPTTPTTPTT
35.5%35.5%35.5%35.5%
SHELLSHELLSHELLSHELL
14.4%14.4%14.4%14.4%
ESSOESSOESSOESSO
17.6%17.6%17.6%17.6%
BCPBCPBCPBCP
11.9%11.9%11.9%11.9%
CTXCTXCTXCTX
7.5%7.5%7.5%7.5%
JETJETJETJET
6.3%6.3%6.3%6.3%
OthersOthersOthersOthers
6.8%6.8%6.8%6.8%
PTTPTTPTTPTT
57.3%57.3%57.3%57.3%
BCPBCPBCPBCP
42.7%42.7%42.7%42.7%
489 ML/Mo 105 ML/Mo 896 ML/Mo 4 ML/Mo
Vol. +28.9%Vol. +3.7% Vol. +3.9% Vol. +27 ML/Mo
Market Share of Service Station 2007
57
Vol. ML/Mo GSH 95 GSH 91
Total Year PTT BCP SHELL ESSO OTHERS
55.7 2005
104.6 2006
�88.8%
141.7 2007
�35.5%49.2
39.1
21.1
31.2
24.2
20.2
24.2
20.8
11.4
16
8.2
21.1
12.3
0.9
2.1
- 20 40 60 80 100 120 140 160
PTT BCP SHELL ESSO OTHERS-
20.2 20.2 20.2 20.2
16.4 16.4 16.4 16.4 7.8 7.8 7.8 7.8
13.3 13.3 13.3 13.3 16.8 16.8 16.8 16.8
GasoholGasoholGasoholGasohol95959595
GasoholGasoholGasoholGasohol91919191
Current StatusCurrent StatusCurrent StatusCurrent Status(Jan 2008)(Jan 2008)(Jan 2008)(Jan 2008)
Current StatusCurrent StatusCurrent StatusCurrent Status(Jan 2008)(Jan 2008)(Jan 2008)(Jan 2008)
Volume : Volume : 18.618.6 MLML
Stations : 704 UnitsStations : 704 Units
Volume : Volume : 23.2 ML23.2 ML
Stations : 522 UnitsStations : 522 Units
+25.8.8% +28.9% +16.3% +95.1% +71.5%
The Leader in Renewable Energy
Unit : Million liter / Month
58100.0100.0-1.1%1,384.81,369.5Total
-0.24.44.2-5.2%61.057.8Others
-0.12.22.1-5.8%29.928.2PETRONAS
+0.26.56.7+2.4%89.691.8JET
+0.28.38.4+1.0%114.3115.5CALTEX
+0.612.112.7+3.8%168.2174.5BCP
+0.416.917.3+1.3%233.9237.1ESSO
AVG. YTD (Jan.-Dec.)
16.0
32.6
2007
Market Share (%)
+2.5%
-6.0%
+0.615.4213.5218.8SHELL
-1.734.3474.4446.0PTT
200620062007
Sales Volume (ML/Month)
Market Share - Service Station
59100.0100.0-0.8%488.5484.4Total
-0.13.53.4-2.9%17.316.8Others
0.02.52.5-0.2%12.112.0PETRONAS
-0.16.86.7-2.9%33.332.4JET
0.09.69.6-1.4%47.046.3CALTEX
+0.612.613.1+3.6%61.463.7BCP
+0.415.716.1+1.6%76.677.8ESSO
AVG. YTD (Jan.-Sep.)
17.6
31.0
2007
Market Share (%)
+0.8%
-3.8%
+0.317.384.785.4SHELL
-1.031.9156.0150.0PTT
200620062007
Sales Volume (ML/Month)
Market Share - Service Station (Mogas Pool)
60100.0100.0+35.5%104.6141.7Total
0.01.21.2+41.7%1.21.7Others
+0.71.01.7+137.6%1.02.4PETRONAS
+1.63.85.4+92.3%4.07.6JET
+0.85.86.5+53.1%6.09.3CALTEX
-1.123.222.0+28.9%24.231.2BCP
+3.57.811.3+95.7%8.216.0ESSO
AVG. YTD (Jan.-Sep.)
17.1
34.7
2007
Market Share (%)
+16.5%
+25.9%
-2.819.920.824.2SHELL
-2.637.439.149.2PTT
200620062007
Sales Volume (ML/Month)
Market Share - Service Station (Gasohol)
61100.0100.0-1.2%896.3885.2Total
-0.24.94.7-5.7%43.541.0Others
-0.22.01.8-9.6%17.916.2PETRONAS
+0.46.36.7+5.5%56.359.4JET
+0.37.57.8+2.7%67.369.1CALTEX
+0.611.912.5+3.9%106.7110.9BCP
+0.417.618.0+1.2%157.3159.3ESSO
AVG. YTD (Jan.-Sep.)
15.1
33.4
2007
Market Share (%)
+3.6%
-7.0%
+0.714.4128.8133.3SHELL
-2.135.5318.4296.0PTT
200620062007
Sales Volume (ML/Month)
Market Share - Service Station (Diesel)
62
Source : DOEB
Market Share - Service Station (Bio Diesel)
+0.02-0.020.01-0.01JET
100.0100.033.73.537.2Total
+33.243.676.827.11.528.6BCP
AVG. YTD (Jan.-Sep.)
23.2
2007
Market Share (%)
6.6 -33.256.42.08.6PTT
200620062007
Sales Volume (ML/Month)
63
CSDR
CD to PTT
CS
Warrant
CDDR
ESOP Warrant
Listed
Listed
Listed
Non -Listed
Non
Non --Listed
Listed
• Capital protected by MoF THB13 / per unit at maturity date Feb 2, 2014• Force conversion : when BCP-DR1 > THB 20.80, 15 consecutive days
• No capital protection• Par value of THB 1.00 per share
• Right offering in 2Q06• Exercise price THB 18 per CS, Quarterly• Maturity in May 2011 (5 years)
• Capital protected by MoF @ THB10,000 per unit (Jan 29,2014)• Coupon 3% p.a., Semi-annual• Conversion : THB 14.30 per CS, Quarterly• Force conversion : when BCP-DR1 > THB 21.45, 15 consecutive days
• Solely issued to PTT for PQI funding• Conversion price THB 14.00 per CS, Quarterly• Coupon 3% p.a., Semi-annual
BCP-DR1
BCP
BCP-W1
BCP141A
TickerTickerNameName
• Issued to BCP’s directors and employees maturity at Aug 24, 2009• Exercise price THB 5 per CS when BCP-DR1 > THB 21, 5 consecutive days
Note: CSDR, CS, Warrant are tradable in Stock Exchange of Thailand (SET)CDDR is tradable in TBDCWarrant (BCP-W1 and ESOP) exercise ratio is 1 Warrant per 1 CS
Significant Terms & ConditionsSignificant Terms & ConditionsTypeType
Common Share Depository Receipt
Convertible Debenture
Common Share
Warrant
Convertible Debenture Depository Receipt
Warrant
BCP’s Instrument & Features
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