GDP
DRIVES US TOWARD FURTHER SUCCESS
Projects Update
Industry Outlook
Appendix
Performance Highlight
2
• Dividend Payment• CAPEX Plan• Company Profile• Financial Performance
Strategic Direction
5141
53 5170
3
Key Performance
17,033 17,430 20,420
13,890 17,809
Net Sales (net excise tax)
Unit: MB
EBITDAUnit: MB
Performance by Business
Net ProfitUnit: MB
Petroleum Petrochemical Utilities & Others
Net Sales(net excise tax)
Dubai (Avg.)Unit: $/bbl
199,595 168,349
197,594
139,151
194,686
9,402 9,721 11,354
6,841
9,362
2015 2016 2017 9M17 9M18
Crude Run (KBD)183 209170180
TA (1Q17)
183
EBITDA
Net Profit
Market GIM ($/bbl) 14.0 13.0 13.414.6
Acct. GIM ($/bbl) 12.5 12.8 15.5 14.9
14.5
YoY 17%
YoY 17%
YoY 17%
15.3
YoY 40%
YoY 28%
YoY 37%
Net Stock G/(L)($/bbl) 0.3 1.9(1.5) (0.2) 1.0
2017 performance improvement after project completion9M18 better NI due to higher U-Rate
27%
61%
12%
9M18
40%
51%
9%
71%
28%
1%
194,686MB
17,809MB
9,362MB
4
Financial PositionImproving Financial position driven by better performance after project completion
Maturity of Long-term Debt
Debt ProfileStatements of Financial Position
Cash Flow
Unit : MB
Unit: MB
PP&E
Other Non-CA
Cash
184,544
Other CurrentLiabilities
LT Liabilities incl. current port.
Shareholders’Equity
Dec. 2017
Other CA
Other Non-Current Liabilities
Cash Flow from
Operating
Unit: MB
Cash Flow from
Investing
Cash Flow from
Financing
Financial Ratios
< 1.0x
Net D/E CA/CL
0.660.75 0.65
2015 2016 2017
0.99
0.76 0.96
2015 2016 2017
0.74 0.69
9M17 9M18
0.85 1.00
9M17 9M18
128,324 126,970
8,637 9,220
45,438 52,753
2,145 2,336
87,650 88,996
2,378 2,537
55,812 51,347
38,704 48,399
Sep. 2018
191,279
Beginning Cash
1 Jan 2018
Ending Cash30 Sep 2018
699 3,734 6,358 6,438
17,416 1,936
4,516
3,363
6,887
699
7,098 8,294
13,325
21,932
2018 2019 2020 2021 >2021
THB Bond
USD Loan
THB Loan
Remark: Long-term debt as at 30 Sep 2018
Net Debt = 61,412 MB
Ex. Rate = 32.58 Baht/$
ST Loan20%
LT Loan (USD)10%
LT Loan (THB)54%
Bond (THB)16%
Float 84 THB 66
Fixed 16 USD 34
Currency (%) Interest Rate (%)
40
50
60
70
80
90
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19
BRENT Dubai
5
2018 Key Highlights vs Lowlights
Highlight Lowlight
Utilization Rate: above 95%
Full year benefit
Higher Crude Premium & Stock loss
Gasoline Max. Project
PP compound & specialties (PPC)
PP Expansion Project (PPE)
Equity benefit
IRPC Clean Power
$/bbl Crude Oil Prices
(2)
(1)
1
2
3
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19
Premium on Arab Light
Projects Update
Industry Outlook
Appendix
Performance Highlight
6
• Dividend Payment• CAPEX Plan• Company Profile• Financial Performance
Strategic Direction
7
UHV project : Major CAPEXImprove product yield and earnings
IRPC’s refined Production Yield
Upstream project for Hygiene & Value-added Products
Objective : Upgrade low value to high valued-added products
Investment : $ 1.1 bn
COD : Jul. 2016
Benefit : GIM 1.5-2.0 $/ bblAssumption : Spread propylene to FO ~ 500-600 $/ton
RDCC unit Feed Cut-in
@ Jun 16 COD @ Jul 16
HYVAHL unit Feed Cut-in
HS-ATB @ Jul 16 COD @ Jul 16
Performance Guarantee Test RDCC run 100%
@ Oct 2016
Plant Acceptance
(PAC)
Jan 2017
43%
78%
95%
2016A 2017A 2018F
Upgrade to High Valued-Added products
131
123
163
367
220
326
74
HSFO
LPG
Ethylene
HYVAHL
Propylene
Naphtha
FO/FG
Middle Distillates
RDCC
C4 Raffinate III
Internal use & Loss
Unit : KTA
16%
5%
23%
9%
9%
26%
12%
Flow Diagram
LSFO
UHV
Designed Yield
23%8% 11%
4% 4%
14%
10%
15%
12% 10%
40%
38%
45%
47% 48%
5%
10%
8%
9% 12%
16%
21%
16%18% 16%
2%
5%3% 5% 5%
6%1% 4% 4%
2% 1% 1%
IRPC IRPC+UHV IRPC2015A
IRPC2017A
IRPC2018F
Ethylene
Propylene
LPG
Naphtha
Gasoline
Diesel/JetFuelLube Oil
Fuel Oil
Designed Yield
8
Project UpdateGasoline Max. : Better than target, Cat. Cooler construction on schedule
Gasoline Maximization Project UHV Catalyst Cooler in RDCC plant
CAPEX : ~ 800 MB
IRR : ~ 80%
Benefit : GIM: 0.4$/bbl
COD : Nov.2017
Results:
Gasoline volume increase 35 mn liters per month, higher than target of 25 mn liters
Demin
RDCC Plant
ERU
PRU Unit
PNU Unit
Prime G Unit
Ne
w c
olu
mn
GasolineBlending Pool
~ 25 M.Litres/month
C2’s
C3’s
C4’s
Naphtha
Modification
Modification
Poly-gasoline (C8’s)20 t/hr. to gasoline pool
Heavy Oligomerate (C12+’s)5 t/hr. to RDCC
HCN (benzene <0.5 volume%) 27 t/h Gasoline pool
Benzene rich cut 8 t/h
LCN
ERU – Ethylene Recovery Unit PRU – Propane-Propylene Splitting Unit PNU – Naphtha Oligomer Unit Prime G – Naphtha Hydro-treating Unit
CAPEX : ~ 1,320 MB
IRR : ~ 35%
Benefit : GIM: 0.3$/bblConstruction Progress : 82% (As of Dec 18)
1st Tie-in be completed in Sept. 2018 2nd Tie-in and shutdown for main equipment
installation by Feb. 2019 for ~ 28 days COD: ~ 1Q19
Project Objective : Crude selection more heavy crude More electricity & steam
9
PPE&PPC Benefit EnhancementFulfill UHV benefits thru higher margin on PPE & PPC
Random PP• Pipe grade• Hygiene
Super Clear PP• Container box• Medical Device
Block-CO PP• Household Material• Heavy-duty
HOMO PP• Film application• Fiber grade
PP Specialty•Frozen food packaging•Lamination•Health care
PP Compound• Automotive:
pumper, instrument panel, etc
PPE 160 KTA PPC140 KTA
Total PP 775 KTA in 2017
PP Existing 475 KTA
PP Expansion and PP Compound Project
CompoundingHouse
PP inline compound
Lower cost : PPC production by Inline process technology
Note: Cost Saving • No Packing & Logistic• No 2nd Extruder Process
PP Marketing Strategy : Sales Plan
Y2017
Volume: 600 Ktons
Y2022
Volume: 760 Ktons
PP Expansion Project (PPE) Licensor : Novolen Capacity : 160 KTA PMC : Foster Wheeler, EPC : Sinopec
• CAPEX : $ 236 mn• GIM 0.8-1.0 $/bbl• COD : 4Q17
Top polypropylene producers in south-east Asia
2014 2015 2016 2017 2018
ExxonMobil Singapore 860 860 860 860 860HMC Polymers Thailand 755 755 810 810 810IRPC Thailand 475 475 475 775 775TPP Thailand 720 720 720 720 720TPC Singapore 625 625 625 625 625Chandra Asri PC Indonesia 480 480 480 480 480Polytama Indonesia 386 386 386 386 386Lotte Chem. (M) Malaysia 373 373 373 373 373Nghi Son Viet Nam - - - 185 370JG Summit PC Philippines 185 185 185 185 185
Unit : KTA
Source : IHS
Random PP4%
Homo PP75%
Block-CO PP
21%
PP Compound11%
Random PP10%
Homo PP58%
Block-CO PP21%
PP Compound & Specialties (PPC) Licensor : JPP Capacity : 140 KTA PMC : Foster Wheeler EPC : Sinopec
Gasoline Max. Project
10
Project Update : UHV and PPE & PPC
2017 2019
UHV Project Catalyst Cooler Project
0Benefit to GIMUnit: $ per bbl
UHV 2017: 1.35 $/bbl2018F: 1.97 $/bbl
PP compound & specialties (PPC)
PP Expansion Project (PPE)
Catalyst Cooler
UHV value added
Flexibility of crude selection
Utility from cracking
heavy crude molecule
CAPEX : ~ 1,320 MB
COD : ~ 1Q19
GIM 0.3$/bbl
Increase UHV benefit Maximize Gasoline Yield Reduce Thailand import CAPEX : ~ 800 MB Capacity:25 mn litre/month
GIM 0.4$/bbl
Gasoline Maximization
COD : Nov. 17
PP Compound
Capacity: 140 KTA
CAPEX : 5,323 MB
GIM0.4$/bbl
COD : Sept. 2017
Capacity:160 KTA
CAPEX : 2,799 MB
GIM0.4$/bbl
PP expansion
COD : Dec . 2017
PPE 2017:0.13 $/bbl2018F: 0.50 $/bbl
PPC2017: -2018F:0.31 $/bbl
Cat. Cooler2018: -2019F: 0.3$/bbl
MC Plan : Feb 19 COD Plan : End 1Q19
UHV & UHV value added &
PPE & PPC
Total Benefit to GIM: $/bbl
2017: 1.54$
2018F: 3.17$
2019F: 3.47$
Upgrade low value to high value-added products 2016 U-Rate: 43% CAPEX : ~ $ 1.1 bn
GIM 1.5-2.0 $/bbl
UHV
COD : Jul. 16
Gas Max. 2017: 0.06 $/bbl2018F: 0.39 $/bbl
2016
Projects Update
Industry Outlook
Appendix
Performance Highlight
11
• Dividend Payment• CAPEX Plan• Company Profile• Financial Performance
Strategic Direction
12
IRPC Strategic Roadmap to 2020Power of Growth, Power of Digital & Power of People: “GDP”
Capacity Before After
Propylene (UHV)
412 KTA 732 KTA
2010
2014
Margin Improvement
• Operational Excellence
• Commercial Excellence
• Procurement & HR
Excellence
Benefit +135 MUSD
INDIVIDUAL OWNERSHIP
SYNERGY
PERFORMANCE EXCELLENCE
INNOVATION
RESPONSIBILITY FOR SOCIETY
INTEGRITY & ETHICS
TRUST & RESPECT
Projects Completion
• Operational Efficiency Improvement
• Asset Utilization Enhancement
• Product and Service Improvement
• Capacity and Products Expansion
Incremental Margin and Organization Health
• Capability Building
• Owner mindset & Performance
Orientation
• Cultural Changes
Fully Integrated PP
Revenue Growth of 5%
EBITDA Growth of 10%
1st Quartile ROIC in Petroleum
and Petrochemical Industry STRONG
Member of DJSI Emerging
Markets Universe
Capacity Before After
PP (PPE&PPC)
475 KTA 775 KTA
20172016
Capacity Before After
CHP I
- Electricity
- Steam
PRP
EBSM
108 MW
200 T/hr
312 KTA
200 KTA
328 MW
620 T/hr
412 KTA
260 KTA
BIG LONG
Leading Integrated Petrochemical Complex in Asia by 2020
Power of GrowthG
Power of DigitalD
Power of PeopleP
13
GDP: From Aspiration to Execution
Power Three : 3 Pillars for achieve Top Quartile in 2020
Power of Digital
Power of People
Truly embedand live the IRPC DNA
Develop next generation of Top
30 leaders
Continue to establish lean, fit-for-purpose organization
P
Power of Growth Maximum
aromatics for competitiveness
Growth byM&A
Everest forever for sustainable growth
Drive R&D excellenceG
100MUSD
100MUSD
OPS 4.0Smart
Operation (AI)
ISC 4.0Integrated
Supply Chain
CCM 4.0Customer
Centric Digital
ERP 4.0ERP
Transformation
PRO 4.0Lean
procurement
100MUSD
D
MARS - Maximum Aromatics
Reformer Benzene
300-500 KTA
Paraxylene
1,000-1,300 KTA
Naphtha PX
Project:
Aromatic
Complex
Internal use
& Export
Export
Naphtha
Treating
unitHCN
Toluene, Xylene, HA
Internal use
& Export
Other Products: LPG, Raffinate, Raw
Hydrogen, Fuel Gas
200 KTA
CAPEX: $1.1 bn - $1.3 bn IRR 14%-16%
Petrochemical Yield 17% Existing + UHV
Petrochemical Yield 27% >>
Key Rational
• Utilize excess Naphtha
/Toluene/Xylene as feedstock to
maximize PX and BZ products
• Cost competitiveness
thru new technology
• Affirmed PX demand growth:
CAGR: 4% - 5%
G
Maximum Aromatic Project : MARSTo increase Petrochemical Yield
COD:1Q23
Feasibility study and Technology selection
Basic Engineer Design Package/FEED
Construction
202320192017 20202018
EPC
BOD acknowledged on project economics
Early 2019 BOD final approval on EPC Bidding by mid 2019
14
15
Strategic Initiative – Everest Forever (E4E)To reach 100 MS benefit within 2020
1,870 1,870 1,870
2,456 2,456 2,456
4,736 4,736 4,736
1,1602,440
3,300
491498
491
288
2018
498491
2019
288498
288
2020+
E4E
ISC
OPS
CCM
Corp-Non HR
PROC
Corp-HR
OHI: Organization Health Index >> 86
1st Quartile OHI
xx
1st Quartile OHI
(EBIT)(EBIT)
(EBIT)
‘Maintain top quartile OHI’
Unit: MTHB
EBIT10,300
EBIT10,300
EBIT10,300
Target
(100 MS)
G
16
Refinery Regulation ConcernIMO regulations to start in 2020 which benefit to LS refinery as IRPC
Source : PIRA SPS 2017
1.5%
1.0%
4.5%
3.5%
0.5%
Jan-200.1%
IMO implements
new Sulfur spec
Timeline of changes in Sulfur Emission RegulationIMO to cut global SF limits from marine fuels : 3.5% 0.5%
Global Bunker Demand, MMBD
Source: FGE’s Flash Alert 2 Feb’ 18
Consequence effects
Demand of gasoil for marine bunker blending support gasoil spread,
It is expected gasoil-FO spread will increase from 15-18$/bbl to 35-40$/bbl
Though, lower fuel oil price bring back power generation demand
Higher gasoil price and lower fuel oil price support light crude demand and push Dated/Dubai spread from 2$/bbl to 7$/bbl
3.54
1.25
1.30
2.56
1.00
0
1
2
3
4
5
6
2019 2020
HSFO Gasoil LSFOGlobal Bunker Demand, MMBD
LSFO
17
Asian Product Crack Outlook
Source: FGE Source: FGE
Positive impact from IMOStronger diesel/gasoline spread the highest GRM in 2020
Light & Middle distillate cracks is expected to soar to compensate fallings of HSFO cracks after IMO bunker standards be implemented
Complex refining margins will be pushed to level never be seen in more than a decade at $12/bbl
Asian Refining Margins Outlook
18
Positive impact from IMOStronger diesel/gasoline spread the highest GRM in 2020
Asia crack spreads
$/b
bl
International crude oil pricing
Co
nsta
nt
20
17
do
lla
rs p
er
ba
rrel
Global bunker fuel demand distribution
Consequence effects
Asian product cracks and crude oil differentials will start rising from 2H2019 ahead of IMO implementation
It is expected gasoil-FO spread will increase from 15-18$/bbl to 35-45$/bbl
Though, lower fuel oil price bring back power generation demand
Higher gas oil price and lower fuel oil price support light crude demand and push Dated/Dubai spread from 2$/bbl to 7$/bbl
19
E4E : Initiatives projectCapture more benefit thru LSFO project
CAPEX : ~1MUSD (modify pipeline)
Production : ~ 40-60 mn liters per month
Margin improved : ~ 0.45$/bbl or
~40 MUSD per year
COD : 2H19
Targeted Year : Y2020 & Y2021
Price Assumption to Study IMO effect.Low Sulfur Fuel Oil Project
ADU
VDU
RDCC
Hyvahlin UHV
DCC
SEU/ PDU
DAU/ ABU Asphalt
Extract
VR
Asphaltene
LCO + DO
LCO
ETP PGO
LS-FO
LCO
Sell
G
20
M&A under “Galaxy” projectFocus in Petrochemical Industry
Petrochemical and/ or related petrochemical business with synergy value
Why Galaxy :• Align with aspiration: “Leading Integrated Petrochemical Complex in Asia by 2020”
• Growth Ambition: Invest to deliver targeted EBITDA of $100-200 Million
• Expeditious success
G
Newest investment thru “Galaxy”Polymers e-commerce platform: “IPLAS”
21
Investment Profile
Company: Guangzhao Saiju Performance Polymer Ltd, China
Business: E-commerce platform for variety of plastic products under “IPLAS” platform
Website: www.isuwang.com & www.suwen8.com
Investment size: ~ 650 MB
Exit strategy: IPO by 2021-2023
Shareholding Structure
• Founders 46%• IRPC (new shares) 15%• Others 39%
Investment Profile
New market and distribution
Benefit :
Big data analytic
Leverage know-how
IPLAS : provide market place for supplier and buyer focusing in SME
IPLAS : serve logistic as option for buyer and be included in prices
IPLAS : service buyers for credit term thru interest charged in prices
IPLAS’s PLATFORM : one stop service provider
22
IRPC 4.0 Developing implementation plan through IRPC supply chain
O3 - Utility demand forecasting
O2 - Mass balance reconciliation system
E1 - SAP revisit
I3 - Control tower decision making
O4-O5Rotating Machine PM
O1 - EKON$
P1 - Spend cube analytics
/ SRM
I1 - Crude selection
SupplyProduction/
operationDistribution Customer
Market/Competitor
Digital Organization Data Lake
Robust ERPBackbone
Secured Technology
Agile Way of Work
Collaboration platform
with cross function
team
P2 - Advance material mgmt.
C4 - End-to-end CRM
C1 - Advanced pricing algorithm C6 - Market &
competitors intelligence
C3 - Big data analytics to predict demand
E2 - Tech functionE3a - Data governance /
Reporting & big data analytics
I2 - Collaborative asset tech. platform
P3 - Demand planning (non-HC)
C5 - B2B portal
P4 - Process workflow re-design
C2 - Customer industry platform
O6 - Catalyst lifecycle prediction
O10 - Maintenance advanced scheduler
O8 - Crude blending optimization
O12 - Smart operator app & wearable safety
device
81
Digital leader
23
2 510
6
15
6
10
2429
58
3
2018
> 100
2019 2020
50
11.5
PRO 4.0
OPS 4.0
CCM 4.0
ERP 4.0
ISC 4.0
Unit: MUSD
19 initiatives
to be launched in Y2018
Target
Strategic Initiative – IRPC 4.0To reach 100 MUSD benefit within 2 years
24
Digital passive
DAI: Digital Assessment Index >>
‘Improve DAI to be digital leader’
Power of PeopleIRPC New DNA
24
Individual Ownership
Result-Oriented
Promise and Deliver
Continuous Improvement
Do Things Together
No Bias
Actively Solve The Problem
Following orders
Process-oriented
Promise but delay
Business as usual
Silo-based
Biased reward
Too many
commentators
Projects Update
Industry Outlook
Appendix
Performance Highlight
25
• Dividend Payment• CAPEX Plan• Company Profile• Financial Performance
Strategic Direction
Petrochemical Outlook : PolypropyleneTighten global supply with high U- rate vs demand dynamics
Polypropylene: Regional capacity additions
2018 IHS Markit
Previous forecast
Polypropylene demand
Polypropylene world operating rate
2018 IHS Markit
Polypropylene Market Trade
2018 IHS Markit
Tight supply developing with new capacity delay China demand boost due to recycle ban
Mil
lio
n M
etr
ic T
on
s
Th
ou
sa
nd
Me
tric
To
ns
2018 IHS Markit
High operating rates required to meet strong demand
2012 – 2017: Avg. 86.8% 2018 – 2022: Avg. 91.9%
SEA
Regional and Global market will be tight
26
Global Incremental LDPE Supply/Demand
27
Petrochemical Outlook : PolyethyleneIncremental PE Supplies exceed demand growth to worsen PE margin
Global PE Supply/Demand
2018 IHS Markit
2018 IHS Markit
China PE recycle VS virgin demand
Recycle PE drop from 3 MMTPA to 1 MMTPA
China trash ban supports virgin PE demand
Global tighter HDPE supplies : supporting by China’s coal to gas and
recycle plastic ban policy
2018 IHS Markit
LDPE & LLDPE Supply/Demand HDPE Supply/Demand
Global Incremental LLDPE Supply/Demand
2018 IHS Markit
28
Petrochemical Outlook : ABSStrongly demand growth vs limited capacity addition
Global ABS operating rate
Strongly demand growth relative to global GDP: Car, Toy and household appliances contain ABS
Very few additional capacities in near term length
The global operating rate bottomed out in 2014 at 68% and be expected to improve above 80% since market digests recent ABS capacity investments
Global ABS supply and demand
2018 IHS Markit2018 IHS Markit
ABS strong demand growth vs limited supply ABS operating rate will recover to above 80%
Projects Update
Industry Outlook
Appendix
Performance Highlight
29
• Dividend Payment• CAPEX Plan• Company Profile• Financial Performance
Strategic Direction
30
Dividend Policy & PaymentIRPC is firmly committed to pay dividend at no less than 25% of net income
67% 58% 63%
25% 25% 25%
48% 48% 52%
30%
Dividend Yield 4.1% 2.8% 2.9% 1.9% 3.1% 2.6% 5.1% 4.8% 4.1% 3.5%
Share Price 2 4.38 6.50 4.08 4.12 3.26 3.06 4.30 4.80 7.05 5.80
IRPC pay at 48-67% payout ratio with average dividend yield of 4.0%
0.270.31
0.19
-0.04
0.04
-0.26
0.46 0.480.56
0.33
0.18 0.180.12
0.08 0.10 0.08
0.22 0.230.29
0.10
2009 2010 2011 2012 2013 2014 2015 2016 2017 1H18
EPS
DPS
Dividend Payout
Unit: THB
Div. Policy ≥ 25%
Note: 1 Annualized
2 Closing price at the end of period
N.A.N.A.N.A.
1
Projects Update
Industry Outlook
Appendix
Performance Highlight
31
• Dividend Payment• CAPEX Plan• Company Profile• Financial Performance
Strategic Direction
32
CAPEX Plan in 2018 – 20225 year CAPEX budget of Bt 53 bn including initiative projects
4,333 2,470 2,354 2,425 4,947 2,703
3,397
1,445
342
488
1,132
1,466
116 73
1,301
4,291
9,747
9,736
9,718
9,203
7,169 6,761
12,245
14,683
12,421
2017A 2018 2019 2020 2021 2022
Maintenance
UHV, PPE & PPC Projects
Everest & Delta Projects
Other Projects
Initiative Projects
Unit: MB
14,899 ,
28%
1,445 , 3%
488 , 1%1,655 , 3%
34,793 ,
65%
IRPC 5 year CAPEX Plan
UHV, PPE&PPC
Maintenance
Everest , Delta
Others
Total
53,279 MBInitiative Projects
CAPEX & Projects Update
Industry Outlook
Appendix
Performance Highlight
33
• Dividend Payment• CAPEX Plan• Company Profile• Financial Performance
Strategic Direction
34
Important Events in History
2009 2011 2013 2015 2016
HISTORY
KEY MILESTONES OF THE DECADE
• Increased refinery capacity from 65 kbd to 215 kbd
• Entered Rehabilitation Plan
Successful Rehabilitation new major shareholders:
Founded by “Leophairatana” Family as TPI
IPO Restructuring Plan was approved
Exited from Rehabilitation
plan and Registered as
IRPC Plc.
Operated first LDPE plant in
SEA
Debt Moratorium
MOF was appointed as plan
administrator
1978 1982 1995 1997 2000 2003 2004 2005 2006
Efficiency improvement#1 under “DELTA” Project
Capacity Increase: ABS/SAN to 179 KTA
Efficiency improvement#2 :
Launched “EVEREST” project
Business Improvement under Phoenix
Project
Commenced operation of
Combined Heat and Power Project
(CHP I)
• Commenced UHV project in July 2016
• PTT 31.5%• Gov’t (Vayupak) Fund
10%• Gov’t Saving Bank 10%• Gov’t Pension Fund
Group 10%
UHV: Upstream Project for Hygiene and Value Add Products
2017
• Commenced PPE project in Sept. 2017
• Commenced PPC project in Dec. 2017
2018
• Launched “GDP” project : Growth, Digital, People
48.05%
9.45%
13.06%
29.44%Others
Introduction to IRPCIntegrated Petrochemical Complex
35
Shareholding Structure*
PTT secures 100% crude procurement for IRPC at the market price
Receive 60 days credit term from PTT
Petroleum Product off-take and swap agreement with PTT group on arm-length basis
Strong support of credit facilities from PTT thruIntercompany Borrowing & Lending (ICBL)program
IRPC are under umbrella of PTT group’s centraltreasury management framework
PTT
Crude Procurement &
Credit Term
Product Swaps and Off-takes
Financial and Risk Control
Systems
Operational & Strategic Relationships with PTT Group
Complex & Facilities
*Note: as of Sep 2018
• Integrated petrochemical complex: Upstream to downstream in a single complex
• Locate in Industrial Area: Eastern Seaboard Area of Thailand, 200 km. from Bangkok and 30 km. from Map Ta Phut Industrial Area
• Facility Support:- Deepest sea port- Tank Farm and Power Plant- Thailand’s main coastal highway
Market Cap. : 117,498 MB (as of December 28, 2018)
Credit Rating
BB+Positive Outlook
Ba1Positive Outlook
A-(tha) Stable Outlook
Thai NVDR
Foreign
36
Petroleum and Petrochemical Capacity
Petroleum Petrochemical
IRPC Core Business
Deep Sea PortUtilities5 Depots,
328 MW Power plant
Facilities & Utilities
Refinery• LPG• Naphtha• Gasoline• Diesel• Fuel Oil
Lube Base• Lube Base Oil• Asphalt
Olefins• Ethylene• Propylene• Butadiene
Aromatics• Benzene• Toluene• Mixed Xylene
Polyolefins• HDPE• PP
Polystyrenics• ABS• PS• EPS
Petrochemical Capacity• Monomer 1,588 KTA• Polymer 1,267 KTA
2,855 KTA
Crude Refining Capacity
215 KBD
Freehold Land4,750 Acres
1,221,000
367,000
915,000
352,000
920,000
215,000
Unit: Ton per yearUnit: Barrel per day
Unit: Ton per year
37
IRPC’s Profile
Refinery Capacity : 215 KBD (crude distillation unit)
Petrochemical Capacity : 2.9 million tons
Olefins, Aromatics, Polyolefins, Polystyrenics
1
PP 3rd largest in South-East Asia: 775 KTA
HDPE pipe grade 140 KTA
ABS 179 KTA: The Largest producer in Thailand
2
Lube base oil : 320 KTA
Asphalt : 600 KTA
3
50% of specialty petrochemical portfolio
PPC to add more specialty Petrochemical Products
Specialty : 10-20% higher margin vs Commodity
5
Integrated
Petrochemical Complex &
Product Diversification
Remarkable Position
in ASEAN
Polymer Market
The largest lube base oil capacity
in Thailand
Power & Utility business : 1.0 $/bbl to GIM
Additional contribution from utility JV starting from 2018
Stable income from Port and Tank business
4 Sustained earnings
from facility
and utility businesses
Specialty Petrochemical
to capture
higher margin
38
Petroleum and Petrochemical Value Chain Optimized Configuration & Product Diversification
Olefins Plant PropyleneEthyleneAcetylene Butadiene
180 KTA360 KTA6 KTA56 KTA
Vacuum Gas Oil (VGO)
PP
PS
ABS/SAN
EPS
CCM
Acetylene Black
HDPEEthylene
Acetylene
Propylene
Benzene
TolueneMixed Xylene
Butadiene
CD1
Ethylene
EBSM
Long Residue
4 KTA
140 KTA
775 KTA
Ethylene Rich Gas
DCC
Propylene 132 KTA
ADU (1,2)
215 KBD
Naphtha
Reformate
UHV
Ethylene Propylene 320 KTA
73 KTA
Lube BaseLube Base Oil Asphalt
320 KTA600 KTA
BTX Benzene TolueneMixed Xylene
114 KTA132 KTA121 KTA 31 KTA
57 KTA
179 KTA
125 KTA
48 KTA
260 KTAStyrene Monomer
Acrylonitrile
Feed (Crude Oil / Condensate)Transportation FuelGasoline,
Jet
Diesel
PRP
HS ATB
Propylene 100 KTA
Pyrolysis Gasoline Raffinate
Styrene Monomer
LS ATB
65% 18% 7% 10%
Crude/Condensate Portfolio
Middle east Far east Domestic Others
For sale
Projects Update
Industry Outlook
Appendix
Performance Highlight
39
• Dividend Payment• CAPEX Plan• Company Profile• Financial Performance
Strategic Direction
Financial Highlight: 3Q18 & 9M18 performanceHyvahl & RDCC planned SD and lower product spreads vs lower crude premium
40
27%
61%
12%
52,355 65,367 68,831
139,151 194,686
QoQ 5%
YoY 31%
Overview of Business
Net Sales(net excise tax)
Dubai (Avg.)
Unit: $/bbl
Net Income
Unit: MB
Unit: MB
YoY 21%
QoQ 37%
EBITDA
Unit: MB
6,635 7,162 5,258
13,890 17,809
QoQ 27%
YoY 21%
Petroleum Petrochemical Utilities and Others
Net Sales(net excise tax)
EBITDA
Net income
9M18
40%
51%
9%
71%
28%
1%
194,686MB
17,809MB
3,248 4,050 2,560
6,841 9,362
3Q17 2Q18 3Q18 9M17 9M18
9,362MB
Market GIM ($/bbl) 15.05 13.86 12.37
5172 74
5170
Crude run KBD 201 210 203
Acct. GIM ($/bbl) 16.09 17.47 14.10
3Q18
35%
55%
10%
71%
28%
1%
68,831MB
5,258MB
15%
71%
14%
2,560MB
Net Stock G/(L)($/bbl) 1.04 3.61 1.73
YoY 37%
YoY 28%
YoY 40%
170 209
TA in 1Q17
14.57
15.34
1.90
13.44
14.85
0.28
- The petrochemical producers used more Naphtha as feedstock because of the higher price of LPG
- Soften Demand- High inventories level in USA and Europe- Higher export volume from China and South
Korea
41
Petroleum Spread
50
(50) (31) (26)(55) (28)
(68) (41)
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
777 737 602 624 534 579 544 471
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
438 417 498 512 470 528 481 417
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
(5.0) (5.0)(2.3) (2.1)
(4.0)(1.4)
(4.4)(2.5)
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
13.7 10.8 12.5 12.4
14.6 13.9 14.6 14.4
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
18.3
14.9 14.9 15.0 12.5
16.1
12.1 11.6
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
500SN – FO 180 3.5%S Spread
150 BS – FO 180 3.5%S Spread
Asphalt – FO 180 3.5%S Spread
$/BBL
$/BBL
$/BBL
Lube Base SpreadRefinery Spread
Gas oil - Dubai
ULG 95 - Dubai
HSFO - Dubai
1.7 1.3 0.7
(0.1) (1.1) (0.2)(1.4) (1.3)
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
Naphtha - Dubai
$/BBL
$/TON
$/TON
$/TON
QoQ 13%
QoQ 13%
QoQ 43%
QoQ 1%
QoQ 4%
QoQ 7%
QoQ
QoQ
QoQ
QoQ
QoQ
QoQ
+ Higher demand from Europe and Persian Gulf+ Lower export volume from Iran
- Higher export volume from China + Higher demand from N.Asia, Australia and South
Africa
+ Tight supply + unplanned shutdown of
Malaysian Refinery
- Lower import from China as Yuan depreciation against USD
QoQ 40%
9M18 Market GRM was $5.3/bbl:
YoY : $0.1/bbl decrease as lower Lube Base Oil spread versus higher Diesel spread
13% 11%
7% 7%
5% 6%
8% 8%
21%1%
9%
30%
2%18% 18%
3% 4%16% 13%
9M17 9M18
LPG
Ethylene
Propylene
Benzene Rich
Gasoline
HCN
Diesel
Fuel oil
Fuel Gas
Internal use&Fuel Loss
18% 13%
4% 7%
5%5%
8%8%
22% 19%
9%11%1%
17% 18%
3% 3%
14% 15%
2016 201742
Petroleum Business9M18 : Slightly lower Mkt GRM as Lube Base Oil Spread vs Diesel spread 2017: Better Product yield after COD of UHV leads to mkt GRM increase
6.2 4.4 2.0 1.7 1.4
29.2 30.2 29.5
21.1 26.0
5.7 6.3 6.2
4.2
7.3
3.9 2.5 3.2
2.2
2.0
0.8 0.3 0.5
0.3
0.7
45.7 43.7 41.4
29.5
37.4
2015 2016 2017 9M17 9M18
3.8 3.4 3.1 2.2 2.5
3.7 3.4 3.3 2.3 2.7
7.5 6.8 6.4 4.5 5.2
2015 2016 2017 9M17 9M18
Refinery Production
Lube Base Oil Production
Unit : Mbbl
Sweet , 35%Sour ,
65%
Crude Intake
Unit : Mbbl
Remark : Excluding internal use quantity
Asphalt
Lube Base
3.9 2.7 3.1 2.8 3.2
2.3 2.2 2.1 2.3 1.7
6.2 4.9 5.2 5.1 5.0
2015 2016 2017 9M17 9M18
Lube Base
Refinery
Crude intake (Mbbl)
Market GRM
Sales Volume & Revenue
YoY 19% (volume 1%, price 20%)
54.0 52.0 52.4 37.3 45.4
8.1 7.2 6.4
4.6 5.3
62.1 59.2 58.8
42.0 50.7
2015 2016 2017 9M17 9M18
Lube Base
Refinery
Unit : $/bbl
79% 97% %Utilization
Sales Volume (Mbbl)
Revenue (MB)
66.6 67.0 65.546.5
57.0
60% 61% 67% 66% 65%
40% 39% 33% 34% 35%
2015 2016 2017 9M17 9M18
SweetCrude
Sour
Crude
183 183 180
Naphtha
Gasoline
Diesel
Fuel oil
LPG & Others
122,279 98,348 119,015 82,772
122,800
21,016 14,80416,110
11,706
14,248
143,295 113,152 135,125
94,478 137,048
2015 2016 2017 9M17 9M18
Lube Base
Refinery
9M18
YoY 45% (volume 21%, price 24%)
170 209Crude Run
(KBD)
85% 85% 84%
RDCC Unit72% % Utilization78% 95%43%
2017 MKT GRM was $5.2/bbl: $0.3/bbl increase YoY due to better product yield after COD of UHV project since Jul. 2016
Petrochemical Spread
973 957
1,334 1,328 1,352 1,377 1,379 1,248
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
$/TON
170 194 159 176
125 159
115 121
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
$/TON
261 209 235 219 351 201 427 267
613 639 596 586 600
622 581
550
874 848 831 805 951
823 1,008
817
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
$/TON HDPE-Ethylene Ethylene-NP
210 250
172 192 189 182 164 217
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
$/TON
776 817947 962 947 977 945 898
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
$/TON
283 306 328 351 377 323 362 361
384 350 328 317 280 356 298 256
667 656 656 668 657 679 660 617
2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18
$/TON Propylene-NP PP-Propylene
HDPE-Ethylene –Naphtha Spread
PP-Propylene –Naphtha Spread
MX – Naphtha SpreadToluene – Naphtha Spread
PS –Naphtha SpreadABS –Naphtha Spread
Ole
fin
sS
tyre
nic
sA
rom
ati
cs
QoQ
QoQ
QoQ
QoQ
QoQ
QoQ
QoQ 9%
QoQ 7%
QoQ 5%
43
- Lower demand from Monsoon
- Higher utilization rate - Soften demand from China
+ Increasing demand
- Lower Chinese demand due to weaken Yuan
+ Tight supply from turnaround
+ Higher PX demand+ Tight supply from turnaround in
N.E.A.
- High production volume in China- Weaken demand
QoQ 19%
QoQ 5% QoQ 32%
66.6 67.0 65.546.5
57.0
44
Petrochemical Business9M18 : Lower PTF mainly from lower products spread 2017 : PTF from full year benefit of UHV and uptrend Styrenics spread
22,317 22,335 24,684 17,972 22,100
30,794 29,78035,044
24,702 33,165
53,111 52,115 59,728
42,674 55,265
2015 2016 2017 9M17 9M18
Olefins &Polyolefins
Aromatics &Styrenics
633 677 631 459 552
791 857 952
676 829
1,424 1,534 1,583
1,135 1,381
2015 2016 2017 9M17 9M18
Olefins &Polyolefins
Aromatics &Styrenics
Olefins Production
Unit : KMT
311 386 350
253 297
34 9
12
9 14
251 310 313
229 250
596
705 675
490 561
2015 2016 2017 9M17 9M18
Aromatics & Styrenics Production
Styrenics
Aromatics
Polystyrenics
Unit : KMT
Olefins
Polyolefins
226 245 270 192 209
506 535 600
401
592
732 780
870
592
801
2015 2016 2017 9M17 9M18
2.0 2.0 3.0 3.2 2.7
4.7 5.1 5.2 5.3 4.7
6.7 7.1 8.3 8.5
7.4
2015 2016 2017 9M17 9M18
Olefins &Polyolefins
Aromatics& Styrenics
87% 100% % U-Rate
86% 91% Polystyrenics
96% 110% Styrenics
84% 103% Aromatics
82% 92% % U-Rate
86% 88% Polyolefins
78% 99% Olefins
Unit : $/bbl
Market PTF
Sales Volume & Revenue
Sales Volume (KMT)
Revenue (MB)
9M18 Market PTF was $7.4/bbl:
YoY : $1.1/bbl decrease as lower products spread
YoY 15%
(volume 3%, price 12%)
YoY 30% (volume 22%, price 8%)
90% 90% 87%
83% 87% 91%
97% 92% 83%
91% 91% 90%
85% 84% 88%
94% 82% 100%
94% 100% 88%
2017 MKT PTF was $8.3/bbl: $1.2/bbl increase YoY due to better product yield after the COD of UHV and PPE projects & higher Styrenics spread
9,331 8,493 7,667 23,333 24,729 1,098
2,171 1,017
1,661 3,382
(455)
44 54
(1,221)
108 9,974 10,708 8,738
23,773 28,219
3Q17 2Q18 3Q18 9M17 9M18
Market GIM
3Q18 Market GIM was $12.4/bbl,
QoQ: $1.5/bbl due to Hyvahl & RDCC planned SD and lower product
spreads vs lower crude premium
YoY: $2.7/bbl due to Hyvahl & RDCC planned SD, lower product spreads
and higher crude premium
9M18 Market GIM was $13.4/bbl: $1.2/bbl from 9M17
Higher crude premium over Dubai while projects completion support margin
3.9 3.4 2.9 2.8 3.2
2.1 1.8 1.5 2.3 1.7
5.9 5.2 4.3 5.1 5.0
3Q17 2Q18 3Q18 9M17 9M18
Refinery Lube Base
5.3 5.0 4.3 5.3 4.7
2.9 2.6 2.7 3.2 2.7
8.2 7.6 7.0 8.5 7.4
Olefins Aromatics&Styrenics
5.9 5.2 4.3 5.1 5.0
8.2 7.6 7.0 8.5 7.4
0.9 1.1 1.1 1.0 1.1
15.1 13.9 12.4 14.6 13.4
Petroleum Petrochem Power & Utility
3,662 3,184 2,681 8,171 9,126
5,107 4,661 4,312
13,531 13,617 562 648 674
1,631 1,986 9,331 8,493 7,667
23,333 24,729
3Q17 2Q18 3Q18 9M17 9M18
15.1 13.9 12.4 14.6 13.4
1.8 3.5 1.6
1.0 1.8
(0.7)
0.1 0.1
(0.8)
0.1 16.1
17.514.1
14.9
15.3
Market GIM Stk G/(L) & LCM Hedging
Market GIM
Unit: $/bbl
Accounting GIM
Unit: $/bbl
Unit: MB
Market GIM by business
Unit: $/bblPetrochemical
Petroleum
Unit: MB
45
Gross Integrated Margin (GIM)Shutdown result in lower Mkt GIM & lower net stock gain affected lower Acct. GIM
YoY 18%
QoQ 11%
YoY 8%
YoY 12% YoY 3% QoQ 19%
Accounting GIM
3Q18 Acct GIM was $14.1/bbl
QoQ: $3.4/bbl due to $1.9/bbl lower stock gain and $1.5/bbl lower of
market GIM
YoY: $2.0/bbl due to $2.7/bbl lower market GIM VS $0.7/bbl higher
stock gain
9M18 Acct GIM was $15.3/bbl: $0.4/bbl from 9M17 due to $1.6/bbl
higher stock gain vs $1.2/bbl lower of market GIM
699 3,734 6,358 6,438
17,416 1,936
4,516
3,363
6,887
699
7,098 8,294
13,325
21,932
2018 2019 2020 2021 >2021
THB Bond
USD Loan
THB Loan
128,324 126,970
8,637 9,220
45,438 52,753
2,145 2,336
87,650 88,996
2,378 2,537
55,812 51,347
38,704 48,399
46
Financial PositionIncrease ST loans to support crude payment due to high crude oil price
Maturity of Long-term Debt
Debt ProfileStatements of Financial Position
Cash Flow
Unit : MB
Remark: Long-term debt as at 30 Sep 2018
Unit: MB
PP&E
Other Non-C/A
Cash
184,544
Other CurrentLiabilities
LT Liabilities incl. current port.
Shareholders’Equity
Sep. 2018
191,279
Dec. 2017
Other CA
Other Non-CurrentLiabilities
Beginning Cash
1 Jan 2018
Ending Cash30 Sep 2018
Cash Flow from
Operating
Unit: MB
Cash Flow from
Investing
Cash Flow from
Financing
Net Debt = 61,412 MB
Ex. Rate = 32.58 Baht/$
Financial Ratios
< 1.0x
Net D/E CA/CL
0.74 0.61 0.69
3Q17 2Q18 3Q18
0.85 0.90 1.00
3Q17 2Q18 3Q18
ST Loan20%
LT Loan (USD)10%
LT Loan (THB)54%
Bond (THB)16%
Float 84 THB 66
Fixed 16 USD 34
Currency (%) Interest Rate (%)
16%
22%
31%34% 35%
39%43%
45%
50%
55%
60%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
47
Specialty Petrochemical ProductsSpecialty & Commodity Plus Products to reach 50% in 2018
IRPC 50%
PPC Rokita 50%
IRPC A&L
IRPC 60%
Nippon A&L 37%
Sumithai 3%
Joint Venture
Polyol
Sale Volume (SP+CP) Unit: MT
PPE
PPC
160 KTA
140 KTA COD Dec. 2017
COD Sept. 2017
30% volume growth mainly from PPE&PPC
Thank You
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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.
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