12 November 2020
2
AGENDA
CEO Agenda
Operation & Financial Performance
Industry Outlook
3Q20 & 9M20 Highlight
QoQ 45%
5.52 4.66 6.76
5.46 5.38
3Q19 2Q20 3Q20 9M19 9M20
30
31
32
33
3
Key DriversFirm MKT GIM was driven by higher PTF VS soften GRM
15
25
35
45
55
65
75
Brent Dubai
Crude Oil Price (avg)
Gross Refining Margin (GRM)
Foreign Exchange (avg)
Product to Feed Margin (PTF)
Unit: $/bbl Unit : THB/USD
3.43 2.57
0.73
2.67
1.38
3Q19 2Q20 3Q20 9M19 9M20
Unit: $/bbl Unit: $/bbl
YoY 79%
QoQ 72%
YoY 22%
2Q20 (End 31.07)
31.78
Dubai QoQ 40%
Dubai YoY 30%
QoQ appreciated 2%
YoY depreciated 2%
31.76
YoY 48% YoY 1%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Brent 63.20 68.85 61.94 63.21 50.26 29.20 42.29
Dubai 63.53 67.36 61.16 62.05 50.74 30.55 42.921Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
30.88 30.45 31.45 32.12
4Q19 (End 30.33)
31.49
3Q20 (End 31.83)
4
Financial Highlight: 3Q20 & 9M20 performanceImproved GIM despite higher crude premium
54,264 30,370 37,671
166,240 111,658
QoQ 24%
YoY 31%
Overview of Business
Net Sales(net excise tax)
Dubai (Avg.)
Unit: $/bbl
Unit: MB
EBITDA
Unit: MB
738 1,505 5,843 5,397
911
QoQ 288%
Net Sales(net excise tax)
Market GIM ($/bbl)
61.16
30.5542.92
64.02
41.40
Crude run KBD
Acct. GIM ($/bbl)
Net Stock G/(L)($/bbl)
YoY 83%
YoY 33%
193 189 195 200 191
10.15 8.46 8.74 9.30 8.03
(2.43) 0.17 6.67 (0.07) (1.78)
7.72 8.63 15.41 9.23 6.25
YoY - n.a.
3Q20 9M20
(185%)
54%
231%
67%
31%
2%
111,658MB
911MB
63%
24%
13%
69%
29%
2%
37,671MB
5,843MB
Petroleum Petrochemical Utilities and Others
EBITDA
YoY 218%
QoQ 479%Net IncomeUnit: MB
Net Income
Operating NI (153)
(1,095)(422)
(1,123) (3,335)(1,321)
(411)
1,556
(661)
(7,760)3Q19 2Q20 3Q20 9M19 9M20
YoY – n.a.
YoY 197%QoQ 61%
YoY 188%
Awards and Achievement in 3Q20National Innovation Awards 2020 Human Rights Awards 2020
5
Asian Excellence Awards 2020
6
AGENDA
CEO Agenda
Operation & Financial Performance
Industry Outlook
3Q20 & 9M20Highlight
7
Higher crude run due to the petrochemical market recovery
Crude Intake/Utilization Rate
MKT GIM Net Stock gain/(Loss)
(1.00)
4.87
1.17
1.80
2Q20 3Q20
Hedging Stock G/(L) & LCM
Production Volume & Sales Volume
6.50 $/bbl
MKT GIM2Q20
MKT GIM 3Q20
Crude Premium
Unit: $/bbl
Premium on sales
Fuel loss & Internal
Use
Projects
3Q19 2Q20 3Q20 9M19 9M20
Refinery (Unit: KBD,%)
193 189 195 200 191
90% 88% 91% 93% 89%
Lube
79% 87% 84% 82% 83%
3Q19 2Q20 3Q20 9M19 9M20
Olefins
101% 91% 88% 96% 91%
Aromatics & Styrenics
96% 95% 100% 92% 96%
Petroleum Petrochemical
3Q19 2Q20 3Q20 9M19 9M20
Production (M.bbl)
14.16 13.40 14.23 43.18 41.16
Sales Volume (M.bbl)
16.55 14.45 15.76 49.15 45.39
Petroleum
3Q19 2Q20 3Q20 9M19 9M20
Production (KMT)
464 437 441 1,346 1,327
Sales Volume (KMT)
473 450 413 1,385 1,292
Petrochemical
Margin
20.4 30.5
40.8 43.3 44.0 41.5 Dubai Price
($/bbl)
6.67
0.17
1.01
0.66
0.96
3Q19 2Q20 3Q20
8
Higher liquidity as a result of better performance
Financial Performance
0.69
0.880.73
3Q19 2Q20 3Q20
< 1.0x
Net IBD/Equity
3Q20 Net IBD/Equity : 0.73 times
Financial Position
3Q19 2Q20 3Q20 9M19 9M20
54,264 30,370 37,671 166,240 111,658
738 1,505 5,843 5,397 911
(1,321) (411) 1,556 (661) (7,760)
Net Sales
EBITDA
Net Profit
Net Loss 2Q20
Margin
Net Stock gain
OPEX & Selling Exp.
UnrealizedOil Hedging
Financial Derivatives
FX from borrowing
Tax & Others
Net Profit 3Q20
Operating Income 61%
Net Income 479%
(411) 1,556
(1,095) (422)
Unit: MB
Net Profit: 3Q20 VS 2Q20
3,447 6,445 6,944 7,370
18,089 950 - 1,266 1,266
1,899
-
6,889 1,997 1,997
7,988
4,397
13,334 10,207 10,633
27,976
2020 2021 2022 2023 >2023
THB Bond
USD Loan
THB Loan
Remark: Long-term debt as at 30 Sep 2020
Net Debt = 54,350 MB
Ex. Rate = 31.83 Baht/$
Interest Rate Currency
Float 65% THB 89%
Fixed 35% USD 11%
ST Loan4%
LT Loan (USD)8%
LT Loan (THB)61%
Bond (THB)27%
Leasing0.3%
Maturity of LT Debt
CA/CL
3Q20 CA/CL: 0.96 times
9
AGENDA
CEO Agenda
Operation & Financial Performance
Industry Outlook
3Q20 & 9M20 Highlight
10
Oil Demand Outlook
Global oil demand slowly recovery
A
Source: Platts
2021 growth: 5.8 MMB/D
2020 growth: -8.5 MMB/D
B
C
China oil demand achieved a V sharp recovery
Demand growth drive by ASIA
11
Oil Supply OutlookGlobal oil supply growth led by OPEC+
Source: Platts
A BGlobal Supply / Demand Supply Growth
C
Product OutlookRefinery downtime remain severe
Source: Platts
Stock near “Normal” in key region
A B
C
12
FO
+ Lockdown restrictions are lifted in various parts of the world+ Strong Naphtha demand- Ramp-up in refinery runs- Sliding demand in US during winter
GAS Oil
13
4Q20-1Q21 Market Outlook
ULG 95
FODriving Determinants : Petrochemical
Crude Oil
ULG 95
ABS
PP
HDPE (Pipe)
PS
KeyProducts
Price (3Q20)
Spread(3Q20)
Refinery ($/bbl) ($/bbl)
Dubai 42.9
ULG 95 47.3 4.4
Gas Oil 47.1 4.2
FO 40.4 -2.5
Polymer ($/T) ($/T)
PP 954 557
HDPE(Pipe)
1,035 638
PS 1,022 625
ABS 1,528 1,131
Driving Determinants : Petroleum
+ Recovery of manufacturing in China amid COVID-19 easing+ Increasing demand from colder than usual winter+ International flights resume after lockdown easing- Weak demand due to bearish economic sentiment.
+ Rising demand from more scrubber units come on stream by year end + Increased demand from china as many independent refiners have fully utilized - Fading demand for electric generation from the M.E.
+ Improve demand in Asia after COVID-19 Crisis has eased+ Narrow PE Pipe- ethylene spread may force high-cost producers to reduce operating rate- Slow demand during winter in N.E.A.
+ Manufacturing season + Food-packaging and medical demand remain healthy+ Supply tight in 4Q20 during region T/A period- lean inventory by the end of Dec.
+ Shifting demand in hygiene and appliance due to consumer behavior changes.+ The Automotive producers in Asia have return to the market+ Manufacturing season.
+ Manufacturing season+ Supply tight during T/A period in region.- Soft demand from the alternative plastics
+ Global stimulus package+ US production turns to decline- Return of Libyan oil to the market- Slow pace of economic recovery amid 2nd wave of COVID-19
14
AGENDA
CEO Agenda
Operation & Financial Performance
Industry Outlook
3Q20 & 9M20 Highlight
How to perform under the Crisis
Zero Plastic Waste
Modular Diagnosis Room/ARI Clinic Room
Testing Services Center
Nano Zinc Oxide
FOMM
Graphene Mask
MYTEX
Innovation Center ( )
A N T Team
IRPC 4.0
NOAH
Maximize Assets Value
Floating Solar
ABS Expansion
Ultra Clean Fuel (UCF)
Strengthen IRPC
Specialty Products Enhancement
Streamline Work Process
Sustaining the Future through
“ESG”
15
16
Maximize Assets Value
Floating Solar
Capacity : 75 KBD
CAPEX : 14,400 MB (~ 450 M$)
IRR : ~ 14 %
COD : 2Q23
Ultra Clean Fuel Project (UCF)
ABS Expansion
CAPEX : ~ 430 MB
IRR : ~ 17%
COD : 2Q21
Increasing ABS specialty by 6,000 MTA
Enforcement of the Euro 5 diesel regulation in Thailand
To produce electricity 12.5 MW
Floating Support material by own HDPE
Area : Reservoir in Industrial Park
Usage : Internal use at PP Plant
CAPEX : ~ 550 MB
IRR : ~ 17%
COD : 5 June 2020
Strengthen IRPC
Driven performance by “Strengthen IRPC” program to deliver benefit
17
Specialty Products Enhancement
Commodity Plus42%
Specialty13%
Commodity45%
Commodity Plus42%
Specialty30%
Commodity28%
Target 2024As IS
Expedite Specialty Product in focusing area
PP Compound for EV CarExterior and Interior Parts
Nano Zinc Oxide
Shift to Specialty Chemicals for Better Agriculture
“ANT” Program
Cross-function pilot teams
3D Graphene Face Mask
Product Launch in Sep 2020
“Dual Layer Graphene Fabric Mask”
IRPC Innovation Center (IIC)
To be World-class Fast Follower of Advanced Materials
MYTEX
Penetrate Automotive Market
PP Compound for Automotive
National Innovation Awards 2020 in the Innovative Organization for large business category
18
Streamline Work Process
IRPC 4.0
Creating the leading digital player of future
“ANT” Team
NOAH: New Organization with Agile Human
Enhancing “ANT” Team to other potential sectors
Further enhance business strategies after digital transformation
Crude Selection(Control Tower)
Real-time economic optimization
(EKON)
iPolymerAdvanced pricing
algorithm
Main Initiatives
Choices of Life Through Package
• Aspiring Separation Program (ASP)
• Mutual Separation Program (MSP)
19
Sustaining the Future through “ESG”
Designed by IRPC’s Engineer And Signed the MOU with Rayong Hospitals
Modular Diagnosis Room / ARI Clinic Room
Testing services center
The Collaboration between IRPC & Navamindradhiraj University (NMU)
• Testing Services Center
• Clean room
• To Test & Certify PPE medical products
“One Stop Service Clinic” Zero Plastic Waste
Under Circular Economy
To manage the entire production chain in the
plastic industry (Closed Loop)
To use Big Data to create a Plastic Waste
Platform database
To manage single-use plastic waste from
world-famous restaurants
Zero waste Product
This presentation material has been prepared solely for informational purposes only. IRPC is furnishing it solely for use by prospective investors / analysts in the
proposed event. IRPC makes no representations or warranties as to the accuracy or completeness of such information. By accepting this material each recipient
agrees that IRPC shall not have any liability for any representations (express or implied) contained in, or for any omissions from this presentation.
The information contained herein does not purport to be all-inclusive or to contain all of the Information that may be material to the recipient’s decision. Each recipient
of the information and data contained herein should perform its own independent investigation and analysis of the transaction and the creditworthiness of IRPC . Reference in this Disclaimer to this shall include references to the Appendices (if any) hereto.
Investor Relations Contact: [email protected]
Tel. +662-765-7380, Fax. +662-765-7379
Presentation is available at
www.irpc.co.th
Click “Presentations”
Please complete our 3Q20 & 9M20 satisfaction survey via QR CODE
Thank You
Disclaimers
Appendix
70% 72% 67% 68% 70%
19% 18% 21% 17% 19%7% 4% 5% 6% 5%
4% 5% 6% 9% 7% Others
Domestic
Far East
Middle East
3Q19 2Q20 3Q20 9M19 9M20
38,195 18,782 25,991 117,435 75,017 Petroleum
34,136 16,066 22,222 104,477 64,672 Refinery
4,059 2,716 3,769 12,958 10,345 Lube Base
90% 88% 91% 93% 89% % U-Rate
193 189 195 200 191
22
Petroleum Group3Q20: Higher crude premium affected soften GRM9M20 : Weaker products spread during COVID-19 pandemic led to lower Mkt GRM
14.87 12.72 13.95
43.95 40.09 1.68 1.73 1.81
5.20 5.30
16.55 14.45 15.76
49.15 45.39
3Q19 2Q20 3Q20 9M19 9M20
Lube Base
Refinery
3.63 (0.81) 1.62 2.91 1.94
2.10 1.29
(0.94)
1.46
(0.17)
1.33
1.28
1.67
1.21
1.55
3.43
2.57
0.73
2.67
1.38
3Q19 2Q20 3Q20 9M19 9M20
Lube Base
Refinery
Crude Intake
GRMSales Volume & Revenue
Production
72% 72% 67% 70% 70%
28% 28% 33% 30% 30%
3Q19 2Q20 3Q20 9M19 9M20
Sweet Crude
Sour Crude
Premium over Dubai ($/bbl)
Crude Run (KBD)
YoY 5%
QoQ 9%
YoY 32%
QoQ 38% Revenue
YoY 8%
YoY 36%
Crude intake (Mbbl)
Unit : $/bbl
Unit : Mbbl
Unit : Mbbl
17.73 17.18 17.95
54.48 52.24Sales Volume
Unit : MB
YoY 1%
QoQ 4% YoY 4%
YoY 0.5%
QoQ 6% YoY 5%
90% 88% 91%
79% 87% 84%
113% 79% 97%
93% 89% % Utilization
82% 83% Lube Base
99% 90% RDCC
YoY 79%
QoQ 72% YoY 48%
17.73 17.18 17.95
54.48 52.24
1.73 1.23 2.15 1.62 1.55
3.793.43
4.613.84 3.83
5.524.66
6.765.46 5.38
3Q19 2Q20 3Q20 9M19 9M20
Olefins
Aromatics &Styrenics
3Q19 2Q20 3Q20 9M19 9M20
15,250 10,733 10,801 46,229 34,030 Petrochem
9,872 6,597 6,605 29,395 21,292 Olefins
5,378 4,136 4,196 16,834 12,738
23
Petrochemical Group3Q20: Thanks to Styrenics spread supported a rise in PTF9M20 : Mkt PTF dropped as low products spread according to the COVID-19 outbreak
9M20 : Petrochemical revenue was Bt 34 bn
YoY : 26% decrease from 19% price decrease & 7% volume decrease
9M20 Market PTF was $5.38/bbl:
YoY : $0.08/bbl decrease as lower products spread through the COVID-19 outbreak
Production
PTF
Sales Volume and Revenue
174 188 178 534 522 299 262 235
851 770 473 450 413
1,385 1,292
3Q19 2Q20 3Q20 9M19 9M20
Olefins &Polyolefins
Aromatics &Styrenics
QoQ 8%
QoQ 1% Revenue
YoY 13%
YoY 29%
YoY 7%
YoY 26%
Unit : KMT
3Q20 Petrochemical revenue was Bt 11 bn QoQ : 1% increase from 9% price increase VS 8% vol. decrease YoY : 29% decrease from 16% price decrease & 13% vol. decrease
3Q20 Market PTF was $6.76/bbl:
QoQ : $2.10/bbl increase as higher Styrenics products spread & stable Olefins products spread at high level
YoY : $1.24/bbl increase as higher products spread
Crude intake (Mbbl)
Unit : $/bbl
Unit : KMTSales Volume
Unit : MB
YoY 5%
QoQ 1% YoY 1%
101% 91% 88%
99% 85% 81%
103% 98% 96%
96% 95% 100%
81% 85% 89%
107% 102% 113%
102% 100% 103%
96% 91% % Utilization
93% 86% Polyolefins
100% 98% Olefins
92% 96% % Utilization
80% 88% Polystyrenics
90% 107% Styrenics
104% 99% AromaticsAromaitcs &Styrenics
QoQ 45%
YoY 22% YoY 1%
494 505 522
1,539 1,532 263 295 301
850 904
62 55 56
187 175
819 855 879
2,576 2,611
3Q19 2Q20 3Q20 9M19 9M20
Other
Steam
Electricity
24
Power & Utility
9M20 U-Rate of Steam was 61%; 3%
9M20 U-Rate of Electricity was 70%; 1%
9M20 : Power & Utility revenue was 2,611 MB; 1% YoY
Utilization Rate
GIM
Revenue
QoQ 3%
YoY 7%
3Q20 U-Rate of Steam was 61%; 2% QoQ, 1% YoY
3Q20 U-Rate of Electricity was 70%; Stable QoQ, 3% YoY
YoY : decrease owing the utilization electricity from Floating Solar Project
3Q20 : Power & Utility revenue was 879 MB; 3% QoQ, 7% YoY
QoQ & YoY : increase owing to higher electricity sales vol. to EGAT &
higher steam sales volume to customers in industrial area
1.20 1.23 1.25 1.17
1.27
3Q19 2Q20 3Q20 9M19 9M20
Power &Utility
Unit : $/bbl
Unit : MB
73% 70% 70% 71% 70%
3Q19 2Q20 3Q20 9M19 9M20
Electricity
60% 63% 61% 61% 64%
3Q19 2Q20 3Q20 9M19 9M20
Steam
YoY 4%
QoQ 2%
YoY 9%
YoY 3%
QoQ - Unchanged
YoY 1%
YoY 1%
QoQ 2%
YoY 3% YoY 1%
2.10 1.29 (0.94)
1.46 (0.17)
1.33 1.28
1.67 1.21
1.55
3.43 2.57
0.73 2.67
1.38
3Q19 2Q20 3Q20 9M19 9M20
Refinery Lube Base
1.73 1.23 2.15 1.62 1.55
3.79 3.43 4.61
3.84 3.83
5.52 4.66 6.76
5.46 5.38
Aromatics&Styrenics Olefins
25
Market & Accounting Gross Integrated Margin3Q20: Improving A/C GIM resulted from huge net stock gain 9M20 : Lower Mkt GIM & net stock loss led to a decrease in A/C GIM
10.15 8.46 8.74 9.30 8.03
(2.14) (1.00)
4.87
(0.25) (2.98)(0.29)
1.17
1.80
0.18 1.20 7.72 8.63
15.41
9.23 6.25
Market GIM Stk G/(L) & LCM Hedging
3.43 2.57 0.73
2.67 1.38
5.52 4.66 6.76
5.46 5.38
1.20 1.23 1.25 1.17
1.27
10.15 8.46 8.74 9.30
8.03
Petroleum Petrochem Power & Utility
1,879 1,415 413 4,574 2,277
3,028 2,577 3,816
9,364 8,896
656 677 708
2,012 2,097
5,563 4,669 4,937
15,950 13,270
3Q19 2Q20 3Q20 9M19 9M20
5,563 4,669 4,937
15,950 13,270
(1,172) (555)
2,752
(425) (4,937)(161)
644
1,018
303 1,985
4,230 4,758 8,707
15,828 10,318
3Q19 2Q20 3Q20 9M19 9M20
Market GIM
Unit: $/bbl
Accounting GIM
Unit: $/bbl
Unit: MB
Market GIM by business
Unit: MB
YoY 14%
QoQ 3% YoY 14%
YoY 100%
YoY 32% QoQ 79%
YoY 11%
QoQ 6% YoY 17%
YoY 106% YoY 35% QoQ 83%
Unit: $/bblPetrochemical
Petroleum
Accounting GIM
3Q20 Acct GIM was $15.41/bbl,
QoQ: $6.78/bbl due to $6.50/bbl higher net stock gain and $0.28/bbl
higher of market GIM
YoY: $7.69/bbl due to $9.10/bbl higher net stock gain VS $1.41/bbl
lower market GIM
9M20 Acct GIM was $6.25/bbl,
YoY: $2.98/bbl due to $1.71/bbl higher net stock loss and $1.27/bbl
lower market GIM
Market GIM
3Q20 Market GIM was $8.74/bbl,
QoQ: $0.28/bbl due to higher petchem. Spread vs higher crude premium
YoY: $1.41/bbl due to lower products spread vs lower crude premium
9M20 Market GIM was $8.03/bbl,
YoY: $1.27/bbl due to lower products spread
26
Net Profit: 3Q20 VS 2Q20The positive performance derived from high stock gain
268
Net Loss 2Q20
Margin Net Stock gain
OPEX & Selling
Exp.
UnrealizedOil
Hedging
Financial Derivatives
FX from
borrowing
Tax & Others
Net Profit3Q20
Operating Income 61%
Net Income 479%(411) (1,556)
(1,095) (422)
Unit: MB
27
Net Profit: 9M20 VS 9M19Net Stock loss, loss on CCS and unrealized Oil hedging resulted in net loss
Net Gain 9M19
Margin Net Stock Loss
OPEX & Selling
Exp.
UnrealizedOil
Hedging
Financial Derivatives
FXfrom
borrowing
Tax & Others
Net Loss 9M20
Operating Income 197%
Net Income – n.a.661 (7,760)
(1,123) (3,335)
Unit: MB
28
Financial PositionHigher liquidity as a result of better performance
Debt ProfileStatements of Financial Position
Cash Flow
Remark: Long-term debt as at 30 Sep 2020
Unit: MB
PP&E(incl.
investment properties and ROU)
Other Non-CA
Cash
Other CurrentLiabilities
LT Borrowing incl. current port.
Shareholders’Equity
Sep. 2020Dec. 2019
Other CA
Other Non-CurrentLiabilities
Beginning Cash
1 Jan 2020
Ending Cash30 Sep 2020
Cash Flow from
Operating
Unit: MB
Cash Flow from
Investing
Cash Flow from
Financing
Net Debt = 54,350 MB
Ex. Rate = 31.83 Baht/$
Financial Ratios
177,850 181,507Interest Rate Currency
Float 65% THB 89%
Fixed 35% USD 11%
2%
0.69
0.880.73
3Q19 2Q20 3Q20
< 1.0x
Net IBD/Equity CA/CL
1.01
0.66
0.96
3Q19 2Q20 3Q20
Maturity of LT Debt
Plant
2021
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Pe
tro
leu
m
ADU1 13 13
ADU2 10 10
Hyvahl 30 30
RDCC 0
LUBE 0
Pe
tro
ch
em
ica
l
EBSM 45 45
HDPE 6 6 12
PP 13 13
ABS/SAN 14 14
PS 15 15
29
Maintenance Shutdown Plan 2021