27
IRPC Public Company Limited Opportunity Day : 4Q17 & 2017 Result 7 March 2018
IRPC Public Company Limited
Opportunity Day : 4Q17 & 2017 Result
7 March 2018
Disclaimer
This presentation material has been prepared solely for informational purposes only. IRPC is furnishing it solely for use byprospective investors / analysts in the proposed event. IRPC makes no representations or warranties as to the accuracy orcompleteness of such information. By accepting this material each recipient agrees that IRPC shall not have any liability forany 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.
2
3
2017 Performance by Business
2017 Financial Performance
Project Update
Agenda
Strategic Direction
2017 Key Highlight
IRPC’s major Turnaround : Every 5 year Capacity increase: 215 KBD 230 KBD
Reliability & Efficiency improvement
Key product: Propylene 300 KTA
U-rate after COD mid 2016 Y2017 Benefit : 1.35 $/bbl Y2018F Benefit : 1.97 $/bbl
Upstream project for Hygiene & Value-added Products (UHV)
PP compound & specialties (PPC)
PP Expansion Project (PPE)
COD since Sep 2017 Y2017 Benefit : 0.13 $/bbl Y2018F Benefit : 0.50 $/bbl
COD since late Dec 2017 Y2018F Benefit : 0.31 $/bbl
Polypropylene Project
After PPE & PPC Capacity 775,000 ton/ yr
Additional >25 M liters/months COD since Nov 2017 Y2017 Benefit : 0.06 $/bbl Y2018F Benefit : 0.39 $/bbl
Gasoline Maximization Project
IRPC’s Key Takeaways in 2017K
ey I
nve
stm
en
t
Op
era
tio
na
l
The highest Net profit over the last 5 years
Lower hedging loss: -0.87$/bbl in 2016 to -0.65$/bbl in 2017
Oil Hedging Loss
Major Turnaround average of 34 days in 1Q17
4
826
(5,235)
9,401 9,721 11,354
2013 2014 2015 2016 2017
Net Profit (MB)
Pe
rfo
rma
nce
Higher Market GIM : 13.05$/bbl in 2016 to 14.48$/bbl in 2017
Gross Integrated Margin (GIM)Higher U-Rate after T/A
53%90% 93% 96%
1Q17 2Q17 3Q17 4Q17
Speed up and reach > 90% U-Rate after T/A
22%
63%
15%
Financial Highlight: 4Q17 & 2017 Performance2017 Performance Improvement driven by better products yield
48,006 52,355 58,443
168,349 197,594 QoQ 12%
YoY 22%
Overview of Business
Net Sales(net excise tax)
Dubai (Avg.)
Unit: $/bbl
Net Income
Unit: MB
Unit: MB
YoY 166%
QoQ 39%
EBITDA
Unit: MB
4,473 6,635 6,530
17,430 20,420
YoY 46% QoQ 2%
Petroleum Petrochemical Utilities and Others
Net Sales(net excise tax)
EBITDA
Net income
5
YoY 17%
YoY 17%
YoY 17%
2017
33%
56%
11%
68%
30%
2%
197,594MB
20,420MB
1,694 3,248
4,513
9,721 11,354
4Q16 3Q17 4Q17 2016 2017
11,354MB
Market GIM ($/bbl) 12.61 15.05 14.33 13.04 14.48
48 51 5941
53
Crude run KBD 188 201 207 183 180TA in 1Q17
Acct. GIM ($/bbl) 13.06 16.09 17.22 12.80 15.49
28%
62%
10%
67%
31%
2%
10%
83%
7%
2016
17,430MB
9,721MB
168,349MB
6
2017 Performance by Business
2017 Financial Performance
Project Update
Agenda
Strategic Direction
2017 Key Highlight
18.814.5 11.6 14.6 14.8 14.2 16.1 14.4 14.9 14.9
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
7
Petroleum SpreadPetroleum spread improved thru strong economics growth especially in Asia
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
6.1 0.7
(1.9)
0.2 1.1
(1.3) (0.2)
3.0 1.3 0.7
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
Naphtha - Dubai- Higher supply from ME and India
+ Lower supply from Europe, Persian Gulf and export from Russia+ Increasing demand from ME for power generation
9.6 10.5 11.0 12.0 11.8 11.4 13.9 13.0 10.8 12.5
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
(5.2)(8.7)
(4.3) (1.7) (3.1) (1.8) (1.4) (3.1) (5.0) (2.3)
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
$/BBL
YoY - Stable
QoQ 121%
QoQ 6%
QoQ 11%
YoY 16%
YoY 54%
(7)(48) (61) (80)
(13) (38) (28) (44) (50) (31)
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
$/TON
844 780 725 602 635 658 579 536
737 602
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
$/TON
442 418 443 367 451 556 528 458 417 498
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
$/TON
QoQ 13%
QoQ 7%
QoQ 57%
YoY 19%
YoY 18%
YoY 38%
YoY 46% QoQ - Stable
YoY
YoY
YoY
YoY
Strong Demand from low gasoline price
- Higher export volume from China
Incr. global demand from firm economic growth
High supply from China, India and M.E.
high demand from road
construction in the region
+ Increasing stock according to uptrend crude oil price
YoY
YoY
8
12 12 1715 34 33
68 72 2929 17
98 6
7
11 1521
156 156 136
4Q16 3Q17 4Q17
18 4515
99121
21552
47
15
22
24
52
274
480
2016 2017
LPG
L-Sulfur
Propylene
HCN
Diesel
Fuel Oil
0.7 6.2 4.4 2.0
7.6 8.6 8.4
29.2 30.2 29.5
1.6 1.7 2.0
5.7 6.3 6.2
0.8 0.6 1.0
3.9 2.5 3.2
0.1 0.1 0.2
0.8 0.3 0.5
10.7 11.4 11.9
45.7 43.7 41.4
4Q16 3Q17 4Q17 2015 2016 2017
0.9 0.9 0.9 3.8 3.4 3.1 0.9 0.9 0.9
3.7 3.4 3.3
1.8 1.8 1.8
7.5 6.8 6.4
4Q16 3Q17 4Q17 2015 2016 2017
Petroleum Business
Refinery Production
Lube Base Oil Production
Unit : Mbbl
Sweet , 33%Sour ,
67%
Crude Intake
Unit : Mbbl
Remark : Excluding internal use quantity
Asphalt
Lube Base
4.0 3.8 3.8 3.9 2.7 3.1
1.4 2.1 1.8 2.3 2.2 2.1
5.4 5.9 5.5 6.2 4.9 5.2
4Q16 3Q17 4Q17 2015 2016 2017
Lube Base
Refinery
Crude intake (M.bbl)
Market GRM
Sales Volume & Revenue
YoY 19% (volume 1%, price 20%)
13.9 14.3 15.0
54.0 52.0 52.4 1.7 1.8 1.8
8.1 7.2 6.4
15.6 16.1 16.8
62.1 59.2 58.8
4Q16 3Q17 4Q17 2015 2016 2017
Lube Base
Refinery
• $5.2/bbl MKT GRM in 2017: $0.3/bbl increase YoY due to higher Gas Oil & FO spread as well as lower cost from Crude Premium over Dubai.
• 4Q17 MKT GRM was $5.5/bbl: $0.4/bbl decrease QoQ to higher Crude Premium over Dubai.
Unit : $/bbl
(Unit : KMT)
Increasing U-Rate after UHV start up and ADU II internal column retrofit
85% 85% 84% %Utilization
Sales Volume (Mbbl)
Revenue (MB)
17.3 18.5 19.1
66.6 67.0 65.5
74% 66% 68% 60% 61% 67%
26% 34% 32% 40% 39% 33%
4Q16 3Q17 4Q17 2015 2016 2017
SweetCrude
SourCrude
188 201 207
RDCC Unit
Naphtha
Gasoline
Diesel
Fuel oil
LPG & Others
Remark: Excluding internal use quantity
95% % Utilization78%95%
29,792 31,053 36,243 122,279 98,348 119,015 3,717 4,327 4,404
21,01614,804 16,110
33,509 35,380 40,647
143,295 113,152
135,125
4Q16 3Q17 4Q17 2015 2016 2017
Lube Base
Refinery
2017
43%86%
QoQ 15% (volume 5%, price 10%)
YoY 21% (volume 8%, price 13%)
183 183 180Crude Run
(KBD)
87% 93% 96%
224 184 175 192 200
170 159 109
194 159
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
$/TON
668 688 668 529 591 544 622 626 639 596
239 188 177 232 171 286 201 284 209 235
907 876 845 761 762 830 823 910 848 831
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
$/TON Ethylene-NP HDPE-Ethylene
254 262 267 215 192 202 182
114
250
172
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
$/TON
809 806 810 8421,029
878 977 905 817947
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
$/TON
304 308 339 272 435 296 323 258 306 328
295 376 360 366 228 365 356 363 350 328
600 684 699 638 663 661 679 621 656 656
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
$/TON Propylene-NP PP-Propylene
9
Petrochemical SpreadStyrenics spread sharply increased as a few additional supply, vice versa to the rest
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
854 897 984 1,092 1,382
1,226 1,377 1,353
957
1,334
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017
$/TON
QoQ 11% QoQ 9%
QoQ 31%
QoQ 7% QoQ 2%
QoQ 37%
YoY 2%
YoY 18%
YoY 39%
YoY - Stable
YoY 31%
YoY 16%
- Incremental supply from U.S.- Stable demand and product price
Supply glut in Asia
Increasing demand from NEA, ChinaLower supply from Maintenance SD in Korea
Early 2017 supply tight from maintenance SD
in regionIncreasing in China’s virgin plastic demand
Lower demand from China; declining
on Petrochemical U-Rate
YoY
YoY
YoY
YoY
YoY
Strong demand from China, VietnamLower-than-expected additional supply
YoY
10
6,335 6,708 6,712 22,317 22,335 24,684 7,445 9,543 10,342
30,794 29,78035,044
13,780 16,251 17,054
53,111 52,115 59,728
4Q16 3Q17 4Q17 2015 2016 2017
Olefins &Polyolefins
Aromatics &Styrenics
180 185 172 633 677 631 224 270 276
791 857 952
404 455 448
1,424 1,534 1,583
4Q16 3Q17 4Q17 2015 2016 2017
Olefins &Polyolefins
Aromatics &Styrenics
Petrochemical Business
Olefins Production
Unit : KMT
96 101 97
311 386 350
4 4 3
34 9
12
82 81 84
251 310
313
182 186 184
596
705 675
4Q16 3Q17 4Q17 2015 2016 2017
Aromatics & Styrenics Production
Styrenics
Aromatics
Polystyrenics
Unit : KMT
Olefins
Polyolefins
76 100 78 226 245 270 126
162 199
506 535
600
202 261 277
732 780
870
4Q16 3Q17 4Q17 2015 2016 2017
2.4 2.9 2.7 2.0 2.0 3.0
3.8 5.3 5.1
4.7 5.1 5.2
6.2 8.2 7.8
6.7 7.1 8.3
4Q16 3Q17 4Q17 2015 2016 2017
Olefins &Polyolefins
Aromatics& Styrenics
Crude intake (Mbbl)
91% 91% 90% %Utilization
85% 84% 88% Polystyrenics
94% 82% 100% Styrenics
94% 100% 88% Aromatics
90% 90% 87% %Utilization
83% 87% 91% Polyolefins
97% 92% 83% Olefins
Unit : $/bbl
Market PTF
Sales Volume & Revenue
YoY 15%
U-Rate increased after TA: Capacity increase & efficiency improvement
Sales Volume (KMT)
Revenue (MB)
• $8.3/bbl MKT PTF in 2017: $1.2/bbl increase YoY due to better product’s yield after the COD of UHV and PPE projects & higher Styrenicsspread
• 4Q17 MKT PTF was $7.8/bbl, $0.4/bbl decrease YoY mainly from much lower Aromatics spread
(volume 3%, price 12%)
QoQ 5% (volume 2%, price 7%)
YoY 24% (volume 11%, price 13%)
17.3 18.5 19.1
66.6 67.0 65.5
84% 97% 101%
82% 98% 104%
85% 97% 98%
93% 104% 100%
80% 92% 94%
105% 113% 110%
98% 110% 99%
13.04
14.48
0.21
0.36 0.14 0.73
0.13
1.38
0.16
0.32
0.49
1.00
4.0 3.9 3.8 3.9 2.7 3.1
1.5 2.1 1.8 2.3 2.2 2.1
5.4 5.9 5.5 6.2 4.9 5.2
4Q16 3Q17 4Q17 2015 2016 2017
Lube Base Refinery
2.4 2.9 2.7 2.0 2.0 3.0
3.8 5.3 5.1 4.7 5.1
5.2
6.2 8.2 7.8 6.7 7.1 8.3
Olefins Aromatics & Styrenics
12.6 15.1 14.3 14.0 13.0 14.5
2.4 1.8 3.3
(1.0)
1.3 1.7
(1.9) (0.7) (0.4) (0.5) (1.5) (0.7)
13.116.1 17.2
12.512.8 15.5
4Q16 3Q17 4Q17 2015 2016 2017
Hedging
Stk G/(L) &LCM
Market GIM
5.4 5.9 5.5 6.2 4.9 5.2
6.2 8.2 7.8 6.7
7.1 8.3
1.0
0.9 1.0 1.1
1.1 1.0 12.6
15.1 14.3 14.0 13.0
14.5
4Q16 3Q17 4Q17 2015 2016 2017
Power &UtilityPetrochem
Petroleum
Gross Integrated Margin (GIM)Maintain GIM from efficiency improvement and value added from CAPEX
Market GIM
$/bbl
Accounting GIM
$/bbl
11
Market GIM by business
Unit: $/bblPetrochemical (Market PTF)
Petroleum (Market GRM)
Dubai (Avg.)
48 51 59 5141
53
Y16 = 0.11Y17 = 0.92Ever.= 0.49
MKT GIM2016
MKT Spread
Fuel Loss & Internal
Use
Premiumon Dubai
UHV Project
EverestProject
MKT GIM2017
-0.22
$/bbl
Y16 = (2.95)Y17 = (2.09) Ever.= 0.13 Y16 = (3.02)
Y17 = (4.24)Ever.= 0.16
Benefit from Everest
0.861.22
0.81
-0.01
Less Premium on sales
Y16 = 1.06Y17 = 0.84 Ever.= 0.14
MKT GIM: 1.44 $/bbl
12
2017 Performance by Business
2017 Financial Performance
Project Update
Agenda
Strategic Direction
2017 Key Highlight
13
Financial Performance
4Q16 3Q17 4Q17 QoQ YoY 2016 2017
Net Sales 48,006 52,355 58,443 12% 22% 168,349 197,594 17%
Market GIM 7,762 9,331 9,036 (3)% 16% 31,033 32,370 4%
Stock Gain/(Loss) 1,469 1,098 2,058 87% 40% 2,755 3,720 35%
LCM 2 (0) 1 438% (29)% 290 0 (100)%
Oil Hedging Gain/(Loss) (1,194) (455) (231) 49% 81% (3,621) (1,452) 60%
Net Stock Gain/(Loss) 277 643 1,828 185% 560% (576) 2,268 494%
Accounting GIM 8,039 9,974 10,864 9% 35% 30,457 34,638 14%
OPEX + Selling Exp. (3,916) (3,715) (4,637) (25)% (18)% (14,328) (15,641) (9)%
Other Incomes 350 376 303 (19)% (13)% 1,301 1,423 9%
EBITDA 4,473 6,635 6,530 (2)% 46% 17,430 20,420 17%
Cost of Finance (591) (710) (194) 73% 67% (1,481) (1,983) (34)%
FX Gain/(Loss) (439) 90 87 (3)% 120% 104 764 635%
Impairment Gain/(Loss) 3 - 594 - - 3 832 -
Investment Gain/(Loss) 103 109 256 135% 149% 184 577 214%
Other Expenses 109 - 2 - (98)% 43 (7) (116)%
Income Tax (162) (846) (736) 13% (354)% (282) (2,181) (673)%
Net Profit 1,694 3,248 4,513 39% 166% 9,721 11,354 17%
%
Change
Unit: MB
Quarterly & Yearly performance
3Q17
42%
50%
8%
68%
31%
1%
52,355MB
6,635MB
36%
59%
5%
3,248MB
4Q17
45%
49%
6%
70%
29%
1%
58,443MB
6,530MB
33%
49%
18%
4,513MB
Petroleum Petrochemical Utilities and Others
Net Sales(net excise tax)
EBITDA
Net income
56,445 54,895 55,812
6,141 10,503 2,957
62,587 65,398
58,769
2,042 3,759
2,145
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
4Q16 3Q17 4Q17
L/T Debt S/T Debt Cash
0.75 0.74 0.65
4Q16 3Q17 4Q17
Debt PortfolioLower D/E ratio and better current ratio
ST Loan5%
LT Loan (USD)
7%
LT Loan (THB)62%
Bond (THB)26%
Debt StructureDebt Profile
Float 74 THB 66
Fixed 26 USD 34
Currency (%) Interest Rate (%)
Net Debt = 56,625 MB Ex. Rate = 32.85 Baht/$
Financial Ratios
0.76 0.85 0.96
4Q16 3Q17 4Q17
< 1.0x
Net D/E CA/CL
Unit : MB
Net Debt
Maturity of Long-term Debt
Unit : MB
MB
ST Loan THB 2,957
LT Loan USD 125 4,097
LT Loan THB 36,467
Bond THB 15,248
Total 125 58,769
Debt Currency60,544 56,62561,639
14Remark: Long-term debt as at 31 Dec 2017
2,536 3,732
6,355 6,435
17,409
3,117 653
327 -
4,999
3,362 -
6,886
-
10,652
7,748 6,682
13,322 17,409
2018 2019 2020 2021 >2021
THB Bond
USD Loan
THB Loan
Statement of Financial Position & RatioHigher profitability Ratios derived from good performance
121,361 128,324
11,169 8,637
37,806 45,438
2,042
2,145
81,005 87,650
2,203 2,378
56,445 55,812
32,725 38,704
Unit: MB
PP&E
Other Non-C/A
Cash
172,378
Other CurrentLiabilities
L/T Liabilities(incl. due within 1 yr)
Shareholders’Equity
Dec 31, 2017
184,544
Dec 31, 2016
Assets : Cash 103 MB AR 2,817 MB
Higher sales price Inventory 4,269 MB
Higher crude oil inventories and higher product price
PP&E 6,963 MB Rising from PPE+PPC Projects, maintenance
expenses offset with Depreciation
Liabilities & Equity AP 6,239 MB
Higher crude oil payable IBD 3,818 MB
Lower short-term loan of 3,184 MB and lower long-term loan including current portion of 633 MB (caused by long term loan of 19,500 MB drawdown to repay loans & bonds 19,322 MB and unrealized foreign exchange gain 787 MB)
Equity 6,645 MB Increase in NI 11,354 MB offset by dividend
paid 4,694 MB(@ 0.23 THB/share)
Other C/A
2016 2017 4Q16 3Q17 4Q17 2016 2017 4Q16 3Q17 4Q17
EBITDA Margin (%) 9.42 9.54 8.65 11.70 10.38 Current Ratio (time) 0.76 0.96 0.76 0.85 0.96
Net Profit Margin (%) 5.25 5.30 3.12 5.73 7.18 Quick Ratio (time) 0.23 0.30 0.23 0.32 0.30
Earnings per share (Baht/share) 0.48 0.56 0.08 0.16 0.22
Return on Equity (%) 12.41 13.47 12.41 11.11 13.47 Net Debt to Equity (time) 0.75 0.65 0.75 0.74 0.65
RATIOS
Financial Policy Ratio
Profitability Ratios Liquidity Ratios
Other Non-CurrentLiabilities
15
16
2017 Performance by Business
2017 Financial Performance
Project Update
Agenda
Strategic Direction
2017 Key Highlight
Operation37%
Supply Chain19%
Commercial27%
Procurement3%
Corporate14%
2017Target
7,003 MB
Efficiency Improvement from Everest ProjectReach 97% of 2017 Target
17
Height
29,029 ft.
Basecamp
(17,500’)
Camp l
(19,500’)
Camp ll
(21,000’)
Camp lll
(23,500’)
Camp lV
(26,300’)
2020
2016
2017
2018
2019ROIC 14%
1st Quartile ROIC in
Petroleum &
Petrochemical Industry
Strong Performance
Healthy Organization
(OHI)
+
ROIC 8%
Getting to the top and staying there2,560
177
281
7,003Total
Y2017 (Target)
1,348
716
2017 Actual
1,091
778
277
165
2,311
Y2016 Actual
3,011
1,179
234
287
6,807
18
2,077
Procurement Area
Commercial Area
Operations Area
Corporate Area: Non HR$
Integrated Supply Chain
Corporate Area : HR
$100m $200m $300m
Optimize crude selection Adjusting production unit
parameter
Maximize energy efficiency Reduce loss in production Improve maintenance
efficiency Reduce production unit
downtime
Budget management Develop human capabilities
Reduce cost thru E-Procurement
Maximize commercial value; go to the new market
17
1,921
To reach $300 mn benefits with CAPEX ≤10% on benefit
0
200
400
600
800
1,000
1,200
2012 2013 2014 2015 2016 2017 2018F 2019F 2020F
0
10,000
20,000
30,000
40,000
50,000
2011 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F
Sales PlanIRPC A&L Company LimitedMarketing ABS and ABS Color Compound Products for the automotive industry, electronics, and office equipment
Shareholding Structure
• IRPC ….……………… 60%• Nippon A&L(NAL) …. 37%• Sumithai ……………. 3%
Joint Venture
IRPC Polyol Company Limited Production and marketing for Polyurethane Products
Shareholding Structure
• IRPC ….…………………………………… 75%• PCC Rokita SA (Poland) ………………. 25%
Sales Plan
-
5,000
10,000
15,000
20,000
25,000
2011 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F
High-value product
Standard product
IRPC Clean Power Company LimitedTo produce electricity and steam for EGAT’s SPP contract and UHV projectThe Company was incorporated on June 20, 2013
Shareholding Structure
• GPSC ….….………… 51%• IRPC ……..…………. 49%
CAPEX : ~13,500 MBIRR : ~11%
Net Profit PlanMB
Total• Electricity : 240 MW• Steam : 300 T/h
Phase 1 COD: Nov 2015• Electricity : 45 MW• Steam : 170 T/h
Phase 2 COD: Nov 2017
Capacity
Enter into new geographic markets and gain new technological knowledge
Ton
Ton
18
Construction period
Phase I
Phase I & II
19
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
20
2017 Performance by Business
2017 Financial Performance
Project Update
Agenda
Strategic Direction
2017 Key Highlight
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
21
22
4.0MARS - Maximize AromaticsG
COD:
4Q22Feasibility study
and Technology
selection
Basic Engineering
Design
Package/FEED/ EPC
Bidding
Construction
202220192017 20202018
Reformer Benzene
300 KTA
Paraxylene
1,000 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: $1.0 bn - $1.1 bn IRR 13%-15%
Petrochemical Yield 15% Existing + UHV
Petrochemical Yield 25% >>
Key Rational
• Utilize excess Naphtha /Toluene/Xylene
as feedstock to maximize
PX and BZ products
Maximize Aromatics
• Cost competitiveness
thru new technology
• Firmed PX demand growth:
CAGR 4% - 5%
22
ST - Strategic transformation and result delivery
Tracking and
Monitoring tool
▪ Set up PEAK
Efficient Organization
▪ Retraining LEAD,
Great Leader Camp 2
Effective project management
▪ Maintain cadence meeting
▪ Ensure strategic move
▪ Maintain KPI (Monthly Variance Analysis: MVA)
“Everest Forever”Vital Enabler to Drive
Sustainable Growth
CEO
Strategic transformation and result delivery
(ST)
Corporate Strategy
Management
E4E IRPC 4.0 M&A
Project 1 Project 2 Project 3
G
System
PeopleProcess/Tool
3
2 1
E4E
100MUSD
23
IRPC 4.0 aims to unlock USD 100 mn in value through digital
"Digitized operations""Integrated customer
management and
engagement"
"End-to-end visibility
& real-time planning"
"Digitized support
functions"
IRPC4.0: Digital Refinery and Petrochemical of the Future
Enhance competitiveness through digitization to achieve the target
ROIC of 14% and unlock > USD100mn in value
OPS 4.0 CCM 4.0 ISC 4.0 ERP 4.0
• Increasing asset performance considering economic impact
• Increasing asset reliability through predictive maintenance
• Field operator effectiveness and safety
• Advanced and optimized pricing
• Increasing customer lifetime value through customer analytics
• Supply chain analytics to reveal process optimization insights
• Continuous rollout of advanced planning capabilities
• Collaborative and analytics driven procurement
• Re-architected technology landscape
• Next Gen Tech function
Remark: Timeline is subject to change
Dec 2018Apr 2018Jan 2018
100MUSD
D
Design & Pilot IndustrializationStrategy & Innovation
2019 24
25
Power of PeopleIRPC New DNA
NEW DNA
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
P
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
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
IRPC 75%
PPC Rokita 25%
IRPC A&L
IRPC 60%
Nippon A&L 37%
Sumithai 3%
Joint Venture
Polyol
Sale Volume (MT)
ABS Powder
Wood Composite
PE-Pipe
AMSAN
Anti-Dripping
Green ABS
EPS
Wire & Cable
UHMW-PE
PP Alloy & PP Composite
Natural ColorCompound
PPE
PPC
160 KTA
140 KTA COD Dec 2017
COD Sep 2017
Nano
Specialty Petrochemical ProductsIncrease High Value Added and Specialty Products to capture higher margin
26
Conductive
Superabsorbent
Thank You
Investor Relations Contact: [email protected]
Tel. 02-765-7380, Fax. 02-765-7379
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.
