23 April 2009
Agenda
Capital Market & Listed Co.
Investor Relations
Sh i E iSharing Experiences
Conclusion
2
Global Capital Market : Source of Funds
Banks
Equity/IPO
Bond30 US$ Trillion
3
Capital Market Key Players
4
Capital Market : Listed Co’s Responsibilities
• What market want from the company?– Better disclosure
Better management quality– Better management quality– Better transparency– Better corporate structure
Expectation Management– Expectation Management
• What market want from IRO?Communication skills– Communication skills
– Timely response & in-depth knowledge – Specific industry experience
Having ears of CEO– Having ears of CEO– Financial literacy– Ability to speak on behalf of the
companycompany– Accounting skills
Payback/Return of IR effort:
5
y /To allow company to raise funds from capital market To help the company to create value to serve shareholders’ interest.
Agenda
Capital Market & Listed Co.
Investor Relations
Sh i E iSharing Experiences
Conclusion
6
IR : From Basic to Strategic Needs
• Stock Performance
• Best Practice
• Stock Performance
• Best PracticeAttraction &n • Best Practice• Best PracticeAttraction & Persuasion
erce
ptio
nm
un
ity
Pe
• IR as a Strategic Tool to enhance “Public Image” as well as optimize “Capital Structure”
• CG
• Shareholders’ Right
• CG
• Shareholders’ Right
Reputation & Acceptance
ent
Com
m Capital Structure– Public Image
• Market Shares• CSR/Sustainability
• Communication• CommunicationComplianceInve
stm
e
– Capital Sources• Funding• Strategic Partner
• Regulation• Regulation
I
Reasonable Active/Proactive Strategic Process
Designed IR efforts & programs7
IR Function : CG & Information Disclosure
8
IR Function : What beyond?
9
IRO : Bird eye view from CEO
• IRO is a key function to demonstrate
management’s ongoing focus onCommunication
management s ongoing focus on
shareholder value
• Actions that can provide higher return
to shareholders than other Marketing &
RelationshipsStrategic &
Finance alternatives e.g.
Dividend Payout
High return on investment project
Merger & Acquisitiong q
10
IR Organization
CEO
A CEOB
CEO
Production Marketing Finance HR
IR/PR/OMD
Production Marketing Finance HR
D
Centralized & Flexibility Centralized & Compliance
CCEO
CPO CPO CFO HR
DCEO
COO CPO CFO HR
C
CPO CPO
IR
CFO HRCOO CPO CFO
IR
HR
11Decentralized & Growth FocusDecentralized & Financial Focus
11
Agenda
Capital Market & Listed Co.
Investor Relations
Sh i E iSharing Experiences
Conclusion
12
TOP’s Experience : Year 5 After IPO
Road ShowCommunication & perception managements Meeting
Call
Conference ExhibitionSite Visit
Road Show
WebsitePress
CG
Confidence Enhancement
IR’s Stakeholders
Best Practice
New RegulationsAnalysts (Equity)
Analysts (Bond)
SET/SEC/ SGX/TBMA
Strategic &
Funds RaisingInvestors (Equity)
Investors (Bond)
CRA/ IB/Media
Investor (Retails)
2004 2005 2006-7 2008
IPO-IPO -Unlocking-Euro Bond
-Other IPO-Unlocking -Bond
???Build Enhance Convince
13
How could we develop continuous IR Plan?
Your shareholder
1
shareholder
Your industryKey player
Crisis Management25
1. 3-Y Message / IR Goal 2. Annual IR Program
Your investmentCapital Mkt
34
investment highlight
pSituation
Expectation Management14
Know your shareholders & Investors1
• Fluctuate global capital market• Short investment horizontal : Thai investors & hedge fundsg• Free floated ~ 50.5%. PTT holds 49.5%
IPO in 2004 2007 Next 1-2 Years
Asia15% Thai
15%Asia19% Thai
15% US20%
Asia15%
Thai15%
Thai Retail20%
Europe
US20%
Thai Retail40%
Europe13%
US13%
Thai Retail20%Europe
20%
Europe30%
30%
Targets • Diversity• Liquidity• Disclosure quality
15
How to track real investors
Analyst Info Service Co.
InvestorsTSD
GOVERNMENT OF SINGAPORE INVESTMENT CORP. PTE LTD. Singapore MACKENZIE FINANCIAL CORP. Canada FIDELITY INVESTMENTS MANAGEMENT (HONG KONG) LTD. Hong Kong CAPITAL RESEARCH & MANAGEMENT CO. United States AJF ASSET MANAGEMENT CO. LTD. ThailandDWS INVESTMENT SA (LUXEMBOURG) L b DWS INVESTMENT SA (LUXEMBOURG) Luxembourg
HSBC INVESTMENTS (UK) LTD. United Kingdom GRANTHAM, MAYO, VAN OTTERLOO LLC United StatesUBS GLOBAL ASSET MANAGEMENT (UK) LTD United Kingdom UBS GLOBAL ASSET MANAGEMENT (UK) LTD. United Kingdom
TMB ASSET MANAGEMENT CO. LTD. Thailand FIDELITY MANAGEMENT & RESEARCH CO. United States CRÉDIT AGRICOLE ASSET MANAGEMENT SINGAPORE LTD. Singaporeg p HENDERSON GLOBAL INVESTORS LTD. (UK) United Kingdom MORGAN STANLEY INVESTMENT MANAGEMENT, INC. United States KRUNG THAI ASSET MANAGEMENT LTD. Thailand
For communication design & focus16
Know your Industry2
• Dynamic Industry / Commodity Oil and Petrochemical Business• High & intensive investment vs 10 years business cycle
17
Know your Investment Highlight3
Completed majorStrategic relationship
ith PTT G o p’sThailand’s largest and
one of the highest complexity in the
region
Completed major expansion in 2008 / No CAPEX obligation
while maintaining growth opportunities
with PTT – Group’s flagship refinery
Diversified earnings
region
Technological
growth opportunities
Diversified earnings through integration
with and contribution from subsidiaries
superiority, logistical advantages, high flexibility & cost competitiveness
Highly capable and experienced staff &
Strongfinancial profile
Industry with high barrier to entry /
Strong market experienced staff &management team
positioning
18
โรงกลน Complex ชนนาของประเทศและภมภาค
Nelson Index - Regional Comparison
Total Refining Capacity = 1,092 kbd
14.0 13.8
BCP (120 kbd)
TOP (275 kbd)PTT’s Flagship Refinery TOP (275 kbd)PTT’s Flagship Refinery 9.4
ESSO (170 kbd)Bangkok 7.0 6.6 6.5
4.6
IRPC (150+65 kbd)
SPRC (150 kbd)
RPC (17 kbd)
PTTAR (145+65kbd)
Gulf of Thailand
( )
Remarks:
RPL (India)
Nippon oil
TOP PTTAR Esso Sinopec SK Corp
Source: PTIT Focus Special Annual Report 2004,except for capacity figure for RRC (based on RRC Offering Memorandum) 19
• Nelson Complexity Index measures refinery’s upgrading capability for comparison
• It is the ratio of complexity barrels divided by crude distillation capacity
Source: The company and broker research
สรปฐานะทางการเงน
(Unit: MB)
Balance Sheet Consolidated Long-Term Debt 1)
32,89127 146
30,452
31,84242,115
Other
LT Debt*
136,570
110,324132,841
CurrentAssets
Bt. 42,115 mn.(US$ 1,201 mn.)
FY/08
60,166 71,837 63,580
19,706 27,146 Liabilities
Equities
Assets
Non-CurrentAssets US$
Bond37%THB
THB Loan22%
13%8%
1%
FY/06 FY/07
Figures shown are unaudited from the company’s Certified Public Accountants
FY/08
Financial Ratios
* Including current portion of Long-Term Debt
37%US$ Loan28%
Bond13%78%
TreasuryPolicy
Net Debt / EBITDA ≤ 2.0x
Net Debt / Equity ≤ 1.0x
Financial Ratios
Currencies Interest Rate
1) Including current portion of Long-Term Debt
5.2Net Debt / EBITDA
Net Debt / Equity
Net Debt / EBITDA(excl. Stock loss)
35%65% 53%47%
Float FixedUS$THB
1.0 0.90.4 0.4 0.71.8
FY/06 FY/07 FY/08As of 30 December 2008 (35.08 THB/US$)
(excl. Stock loss)
20As of 30 December 2008 (35.08 THB/US$)
แผนการลงทน (CAPEX Plan)
Projects COD 2005 2006 2007 2008 2009 2010 2011 Total
(Unit: M$)
j
CDU-3 Revamp Dec’07 34 59 109 21 223
New Gas Turbine Dec’07 9 22 12 43
SBM Expansion Feb’08 78 59 32 169
TPX Expansion Mar’08 6 66 200 85 357
Thaioil Marine’s New Fleets On-going 47 10 16 73
Ethanol 0.2 MLPD1) Jan’09 11 8 19
TLB Specialties - TDAE 2011 5 20 25
Euro IV (Gasoline) 2012 15 15 30
Ongoing Maintenance CAPEX 15 15 15 15 15 15 15 45
Total 64 240 453 171 36 50 30 1,044
1) Investment for 30% equity stake 21116 M$ 928 M$
การจายเงนปนผล
คณะกรรมการบรษทฯ มมตจายเงนปนผลเพมเตมประจาป 2551 จานวน 1.00 บาท
จากทไดจายเงนปนผลระหวางกาลไปแลว 1 75 บาท
9 19 9 40บาทตอหน
จากทไดจายเงนปนผลระหวางกาลไปแลว 1.75 บาท
7.82
9.198.13
9.40บาทตอหน
40%45% 48%
1.80
3.50 3.504.50
2.75กาไรสทธตอหน25%
40%
0.11
2004 2005 2006 2007 2008
เงนปนผลจาย เงนปนผลระหวางกาล1.75
อตราการจาย 25% 38% 45% 48%
อตราผลตอบแทน 3.5% 5.5% 6.7% 5.2% 11.0%
51 50 63 50 52 50 86 50 25 00**
22
ราคาหน 51.50 63.50 52.50 86.50 25.00**
**ราคาปด ณ 12 ก.พ. 52
Capital Market Situation4
100
110
120 Thai Hong KongUS JapanUK
70
80
90
40
50
60
30
Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09
60120 T l V l (RHS) E SET TOP 60
80
100
120 Total Value (RHS) Energy SET TOP
30
20
40
60
23
00
20
Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09
Key Players - Investors5
24
Key Players – Broker Market Share5
Billion THB
1 8 9 102 543 76
By Volume Trade
676 672
800
2006
2007
KIMENG
KIMENG
ASPPHATRA
507490481 480
600
2006SCBS
KGIBLS
SCBS
CSUBS
UBS
PHATRA
ASPCS
PHATRA
490461
409369
311
481 480447
427401
349
307
400
KGI AYS
BFITSECTNS
BLS
BLS
ZMICO
311 297 286 280307 296 290
200
0
25
0
1 8 9 102 543 76
* Share of Citigroup was accounted under SCBS & AYS
Key Players – Broker Recommendation5
โบรกเกอร ความเหน ราคาตอหน วนท
บวหลวง Neutral 70.00 28 พ.ค. 51
นกวเคราะหไ
เอเซยพลส Buy 82.10 26 พ.ค. 51
กมเอง Long-term Buy 90.00 15 พ.ค. 51ไทย SCBS Buy 96.00 26 พ.ค. 51
เคจไอ Outperform 89.00 15 พ.ค. 51
ธนชาต Buy 77 00 23 พ ค 51ธนชาต Buy 77.00 23 พ.ค. 51
UBS Sell 58.00 22 พ.ค. 51
CLSA Sell N.A 1 เม.ย. 51
นกวเคราะห
Credit Suisse Underperform N.A 25 ก.พ. 51
Goldman Sachs (Buy/Attractive) Under Review 28 พ.ค. 51นกวเครา หตางชาต ABN Amro Buy 63.00 26 พ.ค. 51
PHATRA/Merrill Lynch Buy 87.80 23 พ.ค. 51y
Citigroup Buy 62.50 27 พ.ค. 51
MS Buy N.A 17 ม.ค. 5126
3-Year Message/IR Goal
Recession Recovery Active Investment
Capital Market
Leading in Asia Pacific inInvestmentMarket Asia Pacific in
light of valuation
2011- Favorable Market
2010- Investment vs dividendFi i l
Market Condition
- Growth PotentialCompany
Message &
2009- Strong Financial
- Financial Discipline
Message & Target
Financial profile
- Prudent crisis management 27
Annual IR Program 2009
28
IR Organization – Past to Present
Finance Corporate Business
CEO/COO/CFO
Strategic Planning Dept.
Investors Strategic PlannerStrategic Planner
Analysts/CRAs Portfolio MgtPortfolio Mgt
IR Event & Compliance KPI MonitoringKPI Monitoring
29
ชองทางการสอสารของบรษทฯ กบนกลงทน
นกลงทนทวไป• การแจงขาวผาน ตลท. • การพบนกลงทนในนทรรศการของ ตลท.การพบนกลงทนในนทรรศการของ ตลท.• การเยยมชมกจการประจาป• การประชมผถอหน• รายงานประจาป• เวบไซด / อเมล / โทรศพทสายตรง
TOP นกวเคราะหและนกลงทนสถาบน• การประชมแถลงผลประกอบการประจาไตรมาส • การเปดโอกาสใหนกวเคราะหและนกลงทนเขาพบทบรษทฯ เพอชแจงการดาเนนงานอยางสมาเสมอ
• การเยยมชมกจการประจาป• การเดนทางไปพบนกลงทนทงในและตางประเทศ (Management Road show)
สอมวลชนสอมวลชน• การแถลงขาวและใหสมภาษณผานสอ • การประชมรวมกบสอตางๆ เปนระยะ
30
IR Activities
Analyst MeetingAnalyst Meeting
Credit RatingsCredit
RatingsAGMAGM
Analyst Site VisitAnalyst
Site VisitMedia/Press Conference
Media/Press Conference
Retail Site Visit
Retail Site Visit
31
IR Activities
SET in the CitySET in the City Money ExpoMoney Expo
32
IR Calendar
Credit rating: Moody’sSET Event: Money Expo
Analyst Site Visit
Annual General MeetingAnalyst Meeting: Q1 result
Retail Site VisitRetail Site Visit
33
Satisfaction Survey - Analyst Meeting
60 60
Time Duration for Invitation Management’s Presentation
30
40
50
30
40
50
10
20
30
0
10
20
30
0 0
Quality of Presentation Material Quality of Q&A
V.Good Good Fair Below V.Good Good Fair Below
50
60
50
60
20
30
40
20
30
40
0
10
0
10
V.Good Good Fair Below V.Good Good Fair Below34
Popular Questions from Analyst/Investors
• Utilization & Shutdown• Utilization & Shutdown
• Key spreads:
•Product vs DB•Product vs. DB ,
•PX-ULG95,
•Lube Base HSFO•Lube Base-HSFO
• Government policy
ไ ป • กาไรจากอตราแลกเปลยน
• Outlook for 2H/08 :- New Capacity /
E iEconomic
• โครงการในอนาคต
35
• ผลกระทบจากการควบคมราคากาซหงตม
การควบคมราคา LPG และผลกระทบตอบรษทฯ
2008 LPG Demand by Sector
Ex-Refinery PriceRetail Price
CP
18.13
333
462
REFINERY
333
36
KPI & Gap Closing
Investor Relations - 2007
Risk Management• IR Strategy
Compliance
SET Event
• Management involvement
• Extra NDR
IPO 2005 6 8/S e t
Managerial Report
– IPO-2005 6-8/yr
– 2006 4/yr
– 2007 4/yr
2008 5/yr
Road show
Media & Site Visits
– 2008 5/yr
• Annual Site Visit & IR activities
• Enhance channel & access e.g. Web
AGM
Analyst Satisfaction
g
Cast
• Organization, IR team &
C tMarket Recognition
Level 1 2 3 4 5
Competency
37
Expectation Management
FundamentalFundamental SentimentSentiment
Prepare good story f i ht ti
Keep communicate right things for right timeright things
Complexity,Complexity, Q2 Performance,Q2 Performance,Complexity, Expansion, FCF
Complexity, Expansion, FCF
Q2 Performance, Dividend
Q2 Performance, Dividend
38
Bad News Handling
Fact FindingFact Finding
Determine value
Develop message
Communicate thru Communicate thru NetworkNetwork
39
After Clear Message, waiting for good news
40
Agenda
Capital Market & Listed Co.
Investor Relations
Sh i E iSharing Experiences
Conclusion
41
What are Street’s Expectation?
Investor ExpectationInvestor Expectation
CG & DisclosureReturn
Performance&
GrowthManagement
Growth
Stock Performance Liquidity Investor Base Funds Raising42
Conclusion
• IR is critical part of CG enhancement efforts, investors tend to
give more priority on the company with high CGgive more priority on the company with high CG.
• Key Success Factors
– Senior management involvement & support;
– Target shareholding structure to suit strategic– Target shareholding structure to suit strategic
direction/objective;
C t ff ti i ti h l i i t t– Cost effective communication channel i.e. internet,
website, conference call;
– Relationship with brokers to reach out target investors and
supportive report;
– IR approach in crisis situation
43
Q & AQ & AQ & AQ & A
44
Thank YouThank You
i li lAny queries, please contact:Any queries, please contact:Investor RelationsInvestor Relations
at email: ir@thaioil co that email: ir@thaioil co that email: [email protected] email: [email protected]: Tel: 662662--299299--00000000Fax:Fax: 662662--299299--01280128Fax: Fax: 662662 299299 01280128
45
AppendixAppendixAppendixAppendix
46
To Enhance Channel and Network
• Road Show (Local, Oversea)• Preview / Analyst Meeting
Insti. Investors• Quick & Equitable
What they want?
• Call / Conference• Email• Site Visit
Bond Investors
Analysts
Quick & Equitable Response
• Macro/Industry View• Web Cast
• SET Event
Analysts• Access to management
• SET Event• Shareholders Day• Call • Email
Retail Investors • Participation
• Information• Email• Website• Site Visit• AGM
Employee/PeersInformation
• Access to management
• AGM
• Meeting • Financial disciplineCRA • Email
• Call
• Financial discipline
• Prudent IR47
To Enhance Channel and Network
48
Sustainable Corporate Performance
49
Sustainable Corporate Performance
50
Rising funds to invest in quality companies
-----Original Message-----From: Harper Gow, Marianne [mailto:[email protected]] Sent: Thursday, April 10, 2008 5:13 PM
S ( l d )To: SP (Pattaralada) Subject: RE: Dear PatThank you very much for taking the time to speak to us today regarding sustainability (Environmental, social and governance issues). I am pleased the email address works. Best wishes ____________________________________ Marianne Harper Gow
51