1. Has OR been affected by the weakening of Thai baht?

Most of OR's business transactions occur in the country. Consequently, OR's transactions using foreign currency are rare, below 10%, and there are no foreign currency loans. Therefore, the effect of FX on OR is relatively small. Moreover, OR offers foreign exchange risk service, closing more than 90% of the risk of trading transactions.

OR's performance was primarily in line with the country's growth rate. In the third quarter, economic activity was curtailed, lockdown was concentrated in some areas. Oil sales volume declined in the range of approximately 10% compared to the previous quarter. As for the projection on OR's performance in the second half of the year, if measures are relaxed and the city is opened for tourists, then business-related activites are likely to recover. However, there are still many challenges, such as when herd immunity can be reached and how well infection is controlled.
Currently, OR sources bakery from SMEs to sell in our Café Amazon stores. Therefore, having our own bakery plant and products in the stores will lead to product standardization, quality control, and cost control, which create an opportunity for OR to maintain our desired margins level in the long term. OR also aims to increase our ticket size through the non-drink portion from 9% to 13% in the medium term. We believe that the bakery plant will help drive us to reach our performance goal. Nonetheless, OR continues to focus on growing together with SMEs, and the bakery will supply 30-40% of all products in Café Amazon.
The oil retail price is a cost-plus model. The higher oil price does not directly translate to the margins we receive. Our oil margin is in the range between THB 0.80-1.20/litre. We recommend investors include inventory gain / loss when deriving our margin because it's one of the factors we consider when we adjust the pump price.
We have many deals, both F&B and non F&B businesses, which are under discussion. We are open to exploring all opportunities related to the mobility and lifestyle ecosystems.
Currently, the adoption of EVs is still low. According to the Electric Vehicle Associate of Thailand, the number of battery EVs and Hybrid EV/Plug-in Hybrid EV account for less than 2% of the total registered passenger cars in Thailand. We closely monitor the growth of EV technology and believe that we are well-prepared to meet future demand. We also look for partnerships for the EV charging technology to strengthen our mobility platform. We also developed mobile application for our EV charging station, which provides convenience for our customers in locating our EV stations while allowing us to study the behavior of EV users.
OR's investment strategy includes investing in businesses relating to and/or meeting the needs of Mobility and Lifestyle to build on our current business and investing in businesses with an emphasis on technology. Investing in Flash Group that operates a logistics and parcel delivery business, is one example of a new S-curve business that helps increase traffic at our PTT stations while also creates synergy in other aspects with OR. In addition, the investment in Care for Car and Orbit Digital are investments for the development of various platform applications to expand our current business.
We offer a mix of products & services that aims at meeting the needs of consumers. Ensuring they can enjoy the non-oil services available at our stations while refueling and charging their vehicles at the same time. As for the outlook on long-term revenue increase, our current revenue for the space rental business comes in the form of GP sharing.
OR source 100% of our coffee beans locally and believes that from the amount of coffee beans produced in the country per year compared to the coffee demand from Café Amazon outlets, we will be able to support our current and future Café Amazon outlets in the medium term, which is 3-5 years into the future.

OR has set up a 5-year CAPEX plan of 74,600 million THB with the following breakdown: 34.6% oil business, 28.6% non-oil business, 15% foreign business, and 15% other business (new S-Curve) 15%. OR will be focusing on the non-oil business segment, which provides high margins.

If OR can invest according to this 5-year CAPEX plan, the proportion of OR's EBITDA contribution from each business segment will change to the following: Oil business at approximately 50 - 52%, Non-oil business at about 30 - 33%, International business at about 13-15% and other business (New S-Curve) at roughly 5%.

For this year's M&A deals and investment plan, we’re currently still under discussion and cannot disclose such information.

For domestic JVs in the non-oil business, we have discussions and plans to invest mainly in F&B. For international JVs, there are both F&B and Non-F&B.