Refinery Aromatics TRUSTinvestor.pttgcgroup.com/misc/PRESN/20130814-PTTGC... · 8/14/2013 ·...

PERFORMANCE YOU CAN

TRUST Olefins

Refinery Aromatics

Polymers

HVS High Volume Specialties

EO Based Performance

Green Chemicals

Services and Others

2Q/13 Analyst Meeting The St. Regis Bangkok August 14, 2013

Disclaimer

2

This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand.

PTTGC has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements.

Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and PTTGC does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

Agenda

3

Oil Spill Update

2Q/13 Key Business Highlights

Excellence program and Investment Update

2Q/13 Operating Results

Market Outlook

Agenda

4

Oil Spill Update




Market Outlook

Oil Spill Committee and Execution

5

Set up working team Led by CEO, President, Heads of business unit on oil spill management as follows: 1. Cleanup team – continue to clean up oil spill in all

affected areas both on and off shore 2. Remedy team – work with government authorities

regarding financial compensation for the effected persons i.e. fisheries, hawkers stalls

3. Restoration team – monitor and recover marine environment and affected resources including water quality

4. Legal team – work closely with insurance company and third party legal team to claim insurance and to seek legal position for any claim from authorities

5. Communication team – set up spokesperson, IR and PR work together to communicate accurate messages to all stakeholders including public and private sectors

1. Emergency Response

2. Root Cause Investigation

3. Impact Assessment and Restoration

4. Path Forward

Execution

Oil Spill Execution Plans

6

- Clean oil slick - Forecast and monitor oil leakage spread - Contamination area control - Collected spilled oil treatment and disposal - Communicate and align understanding with the community and government agencies

1. Emergency Response

2. Root Cause Investigation

Set up committees to examine the root cause of the incident - Official investigation committee which includes involvement from 5 different private and

public agencies - PTTGC’s Internal Investigation - Audit Committee - Hose Leakage Investigation by

- Specialist - Loss Adjusters - Forensic - Hose Supplier - Thai Expert Representative

Oil Spill Execution Plans (cont’d)

7

3. Impact Assessment and Restoration

4. Path Forward

Setting a new standard for PTTGC and the industry - Oil loading procedure and operation - Flexible hose type, material and usage - Oil spill crisis management and execution plan - Convince the industry to develop a new/higher standard

- Appoint committee to assess and restore the area’s economic, social, and marine ecology - Build network in the community to reach in and evaluate the restoration progress - PTTGC is working together with research institutes and experts (John Wardrop –SEER, Kasetsart

Uni, Burapha Uni, Chulalongkorn Uni, Ministry of Public Health) to: - Study nature oil spread on sea surface - Mitigate aftermath of the beach, coral, rocks and shoreline life - Study of fisheries industry and marine life - Evaluation of community health impact - Revisit emergency responses in oil spill incident

- Remedy projects i.e. promote Samed as tourist destination - Evaluate financial impact to the community

Big Cleaning Day 10 August 2013 @ Prao Bay, Samed Island

8

Religious Ceremony

Financial help to those affected Together with volunteers pick up crude residual

Ready for tourists

Prao Bay is back! PTTGC & Samed Community clean the beach

Agenda

9

Oil Spill Update




Market Outlook

2Q/13 Business Environment and Operations Recap

10

70

80

90

100

110

120

130

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-

12

Aug

-12

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-

13

Dubai Crude

27.0027.5028.0028.5029.0029.5030.0030.5031.0031.5032.0032.50

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13M

ar-1

3

Apr

-13

May

-13

Jun-

13

Jul-1

3

THB/USD

Weaker economic outlook of China and market’s reaction to FED’s tapering QE lead to THB Depreciation

Oil price drop from seasonality effect

Price and spreads soften Diesel-Dubai 17 usd/bbl -4% YoY -24% QoQ

PX-Cond 539 usd/ton -5% YoY -19% QoQ

HDPE 1,443 usd/ton 4% YoY -3% QoQ

MEG 1,173 usd/ton 1% YoY -9% QoQ

Overall utilization rate of major business units drop QoQ

116.14 100.30 109.56 107.43 108.19 100.78 1Q/12 2Q/12 3Q/12 4Q/12 1Q/13 2Q/13

USD/BBL

2Q/12 1Q/13 2Q/13 Refinery 98% 101% 63% Aromatics 92% 92% 84% Olefins 89% 97% 93% Polymers 94% 109% 90% MEG 85% 97% 100% Green - FA 84% 132% 112% Green - ME 103% 101% 106% Phenol 122% 126% 127%

30.97 31.30 31.34 30.66 29.78 29.89 1Q/12 2Q/12 3Q/12 4Q/12 1Q/13 2Q/13

2Q/13 Key Achievement and Milestone

11

Paid 2.45 THB/share dividend with 47% payout ratio for 2H/12 performance. Total 2012 dividend payment was 3.40 THB/share equivalent to 45% payout ratio.

Completed amalgamation between PTTUT and IPT. PTTGC holds 30.31% in GPSC to strengthen business operation of utilities.

Acquire remaining 40% shareholding of PPCL from PTT to pursue its downstream investment and capture the fully integrated value of Phenol chain. PTTGC currently holds 100% since May 2,2013.

Restatement of Financial Statements due to Purchase Price Adjustment (PPA) completion in 4Q/12, contributed mainly from investment in Vencorex.

PPCL had secured funding for Phenol 2 project with investment cost of 348.3 MUSD, Debt/Equity ratio of 2:1. Debt will funded through project finance.

Complete business transfer of BPE and PTTPE to PTTGC for more efficient and integrated operation

LDPE Shutdown (capacity 300kton) for approximately 3.5 months to fix booster/primary compressor, currently waiting for spare part and target resume operation in October 2013.

Oil Spill : Various measures were introduced to protect the environment and the community resulted from an oil leak into the sea amount to 50,000 liters or 316 barrels.

Signed MoU for strategic alliance for further collaboration on petrochemical plant with Sinochem Group

During 2Q/13

After 2Q/13

(Unit: Million Baht)2Q/2012(Restated)

1Q/2013 2Q/2013 YoY QoQ 1H/12 1H/13 YoY

Sale Revenue 139,241 141,309 111,887 -20% -21% 272,906 253,196 -7%

EBITDA 7,537 16,419 11,466 52% -30% 22,525 27,885 24%

EBITDA Margin (%) 5% 12% 10% 5% -1% 8% 11% 33%

Net Profit 1,508 12,075 4,172 177% -65% 11,360 16,247 43%

EPS (THB/Baht) 0.33 2.68 0.93 182% -65% 2.52 3.60 43%

Adjusted EBITDA1 13,422 16,914 12,469 -7% -26% 24,904 29,383 18%

Adjusted EBITDA Margin (%) 10% 12% 11% 2% -1% 9% 12% 27%

Key Financial Highlights

12

Revenue decreased 20% YoY primarily from lower sales of refinery, aromatics Refinery turnaround 44 days

AROII turnaround 17 days

I4-1 shutdown 10 days to prepare for Quench Oil Tower modification

Reduce naphtha to gas portion (liquid/vapor ratio) from 0.95 to 0.60

Net Income increased 177% YoY from better performance and lower stock loss while decreased 65% QoQ due to lower utilization rates and lower spreads

*

*Net Profit 2Q/12 before restate = 851 MB

2Q/13 and 1H/13 Sales Portion by Business Unit

13

1H/13 Thailand’s Market Share

HDPE

LDPE

LLDPE

2Q/13 Sales Split Domestic : Export (Volume)

76%

78%

39%

90%

63%

75%

24%

22%

61%

10%

37%

25%

0% 20% 40% 60% 80% 100%

Green

EO-based

Polymers

Olefins

Aromatics

Refinery

Domestic Export

74%

82%

37%

89%

66%

76%

26%

18%

63%

11%

34%

24%

0% 20% 40% 60% 80% 100%

Green

EO-based

Polymers

Olefins

Aromatics

Refinery

Domestic Export

1H/13 Sales Split Domestic : Export (Volume)

PTTGC, 38%

Other, 41%

Import, 21%

PTTGC, 39%

Other, 32%

Import, 29%

PTTGC, 32%

Other, 39%

Import, 29%

Agenda

14

Oil Spill Update




Market Outlook

Execution Led by a Well Defined Strategy

15

Operational Excellence

Marketing Excellence

Synergy Project Excellence

Debottleneck CAPEX

Excellence

Reliability improvement

Energy efficiency improvement

Cost reduction

24 projects completed out of 105 as of 1H/13

Product development

Customer / Portfolio mgmt

Strategic pricing

Product upgrade

Cost saving from share tank and facility

Steam Cost reduction

BV Project

Quench Tower

PX expansion

PTTPE Cracker and Polymer Plants Debottleneck

Capital Project Management

Engineering

Procurement

Construction

Project Mgmt.

1 2 3 4 5

EBITDA Uplift (USD mn)

Target EBITDA Uplift of Excellence Programs and Synergy Projects 2013-2017

• Debottleneck – 1Q/14 BV project starts up 3Q/15 PX expansion starts up

2Q/13 Key Achievement and EBITDA uplift 1H13

16

Core Uplift 1-Step Adjacencies Emerging Business Models

Target FY13

28 USD mn

113 USD mn

36 USD mn

177 USD mn

Excellence Programs 1H13

1. Operational excellence 1.1

- Reliability improvement

- Energy efficiency improvement

- Cost reduction

2. Marketing excellence 84.6

- HVP sales performance exceeded target - increased portion of HVP from 10% to 14% of total polymers revenue - expanded 4 grades of HVP - Exported Mixed C4 and capture more value from mixed C4 quality premium - Exported PE sales to China, also allocated to strategic locations ie Indonesia for pre-marketing - Treated high sulfur diesel and kerosene from IRPC - Sold light naphtha as spot price to SPRC

3. Synergy projects 10.0

- C3, C4 and 3 stream projects completed

ongoing projects progress as planned - offgas progress 20% - Pure H2 via new PSA progress 77% Total 95.7

New

Pro

duct

N

ew G

eogr

aphy

C4

PU

PC

• Expand into Synthetic rubber business by using butadiene from PTTGC and from JV Investment Plant

Near-term

• JV with key player who offer technology for synthetic rubber

“strategic owner” business model

Mid-Term Long-Term

• Expand HDI derivatives business in Thailand and HDI monomer in France

• To build PU system house with Partner in Thailand for niche market

• Seek for JV polyols and MDI

• Expand niche PU position to China with partner

• JV polyols and MDI plant

• Build fully integrated PU plant • Full market coverage

• Partner with global player • Seek joint sales/mkt in ASEAN • PC Compounding

• Expand capacity • Strengthen market position

ASEAN

China

US Shale Gas

• Study, preparation, and seek opportunity for Cracker in US • Co-Investment with Parent/Sister

Company • Seeking Partnership-JV

• Shale Gas Field Owner/Operator • Asian Company

• Build and Operate

• COD Pertamina petchem complex • Enhance sales and mkt initiatives in AEC

• Buildup HVS Facilities

• Secure AEC market position

• Strengthen sales & mkt on polymer/MEG with partner

• Build asset in China • Sales & mkt on special grade

polymers / HVS products

• Back integrated to a cracker project in China

1-Step Adjacencies Direction

17


• Operate Butadiene Plant (BV Project)

Existing and Upcoming Key Projects

18

New

Geo

grap

hies

N

ew P

rodu

cts

PC

Secure access to China downstream market Signed MoU to jointly explore potential collaboration e.g., PU and PC

chains and Bio-based chemicals Expand downstream product portfolio (PC and PO chain) and support HVS strategic initiative Signed HoA with Petronas and Itochu, target completion by 2017 for feasibility

study Estimated USD 2 bn, PTTGC expects to contribute 25% of the equity component

Phenol 2 Project will capture longer value chain of benzene and propylene. Pave a way towards downstream phenol derivatives. EHIA approved. Expected COD 3Q/15. CAPEX: Estimated investment of USD 148 mn, with D/E 2:1 (project financing)

PU PTTGC holds 51% and is the owner of TDI and HDI technology which will pave the way to PU


Competitive advantage over size and vicinity World-scale integrated petrochemical complex covering upstream to

downstream Pave a way towards HVS product offering Signed HoA in Apr 2013 and to sign JV agreement by Dec 2013 Estimated investment of USD 4 bn, with D/E > 1 under project finance

Existing

Upcoming

Upcoming

Upcoming

China Marketing Activities

Polymers and Other HVS

Upcoming

• Under Feasibility Study

• Expect COD 2017

• Preparation for construction permits

• Expand Scope for collaboration on petrochemical plant

• Delay to 2017 for COD

• Target JV signing in 2014

• Study on HDI derivatives

Status Status Project

http://www.vencorex.com/

Butene-1

IsoButylene

Butadiene

Ethylene

Propylene

Paraxylene

BenzeneCyclo

hexane

Cumene

Phenol

Acetone

C4

Toluene

Cyclohexanone

Dinitrobenzene

MDA(Methylenediphenyl

Diamine)

MDI(Methylenediphenyl

Diisocyanate)

HDITDIDinitrotoluene

TDA(Toluenediamine)

BPA

MMA

Styrene

PTA

VCM

EO

Acrylic Acid

EG MEG

Adiponitrile HDMA

BDO THF PTMEG

Caprolactam

PMMA

PC

SBR

Nylon 6

HDPE

LDPE

LLDPE

PP

Nylon 6,6

PU

BR

Polyester

PAPO PG PPG

PS

PBT

PC

PVC

EC

PET

Petrochemical Value Chain and the link with 1-Step Adjacencies

19


PC Application

PU Application

http://www.vencorex.com/

Biochemical to Support Future Growth

20


Applications PTTGC holds 50% in NatureWorks. A manufacture of polylactic acid (PLA) and lactides, plant-based biopolymers used to manufacture plastics and fibers with world scale PLA capacity of 150,000 ton/year. Planned to build second plant

potentially in Asia Studied the possibilities to use

alternative feedstock

PTTGC holds 47.25% in Myriant Corporation. A R&D based company with proven technology platform. In April 2013, Myriant Corporation had completed the

construction of a 14,000 ton/year Succinic Acid Plant in Louisiana State and is currently commissioning.

http://www.natureworksllc.com/

Agenda

21

Oil Spill Update




Market Outlook

Phenol

YoY: Driven by phenol U-rate up to 127% from 122%, BPA U-rate up to 116% from 27%

QoQ: Driven by phenol U-rate remained about the same, BPA U-rate up to 116% from 60%

Green

YoY: Improved performance driven by ME and

FA increased U-rate, though spread down 9% QoQ: FA U-rate down to 112% from 132%

while MA spread also down 5%

Performance Summary YoY and QoQ

22

Refinery

YoY: Diesel spread down 5%, CDU yield of middle distillate decreased due to 44 days maintenance shutdown

QoQ: Diesel spread down 14%; intake decreased 37% due to shutdown, hence GRM down to 2.38 USD/bbl

Aromatics YoY: BZ spread up 131%; BTX sales volume

down 1% QoQ: PX spread down 19%, BZ spread down

3%; BTX sales volume up 1%

Olefins and Olefins Derivatives

YoY: HDPE price increased 4%; olefins u-rate up from 89%-93%

QoQ: HDPE price decreased 3%; olefins u-rate down from 97% to 93%

Market GRM

Adj.

EBITDA

P2F YoY QoQ YoY QoQ

YoY QoQ

-45% -46% 70% -18%

7% -13%

Adj. EBITDA

YoY QoQ

7% -24%

Adj. EBITDA

YoY QoQ

30% 91%

14% 14% 16% 14% 15%

51% 47% 49% 49% 48%

9% 12% 9% 10% 11%

19% 20% 20% 20% 20% 6% 8% 5% 7% 7%

0%

20%

40%

60%

80%

100%

120%

2Q/12 1Q/13 2Q/13 1H/12 1H/13 144 146 93

291 239

59 58

36

94

94

98% 101%

63%

100%

82%

0%

20%

40%

60%

80%

100%

120%

050

100150200250300350400450

2Q/12 1Q/13 2Q/13 1H/12 1H/13

Crude CR+Other feed CDU rate

Refinery BU Performance

23

Total Production Volume (mbbl) and Yield

Others Ref+LN

Jet

Diesel

Fuel Oil

17.5 10.7 17.6 Total Intake in KBD CDU U-Rate 33.5 28.4

Unit: USD/BBL 2Q/12 1Q/13 2Q/13 YoY QoQMarket GRM 4.32 4.37 2.38 -45% -46% CDU GRM 5.53 5.50 2.73 -51% -50% CRS GRM 2.58 3.08 2.38 -8% -23%Hedging Gain/(Loss) 0.58 0.27 1.23 112% 356%Stock Gain/(Loss) Net NRV -8.79 -0.91 -2.45 -72% 169%

Accounting GRM -3.89 3.73 1.15 -130% -69%

EBITDA and Adj. EBITDA in THB bn

Intake and U-Rate

-2.7

1.4

0.0

1.3 1.4 2.0 1.9

0.4

3.5

2.3

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

2Q/12 1Q/13 2Q/13 1H/12 1H/13

EBITDA Adjusted EBITDA

Unit: USD/BBL 2Q/12 1Q/13 2Q/13 YoY QoQ 1H/12 1H/13 YoY

Dubai 106 108 101 -5% -7% 104 111 6%ULG95-Dubai 14 18 15 7% -18% 17 14 -15%Jet-Dubai 16 20 15 -4% -24% 18 16 -11%Diesel*-Dubai 18 20 17 -5% -14% 18 17 -7%Fuel Oil-Dubai -1 -7 -4 175% -50% -6 -1 -82%

* Diesel 0.05% Sulfur

23% 24% 23% 23% 23%

15% 15% 15% 15% 15%

24% 23% 25% 23% 24%

29% 27% 28% 28% 27%

10% 11% 10% 10% 11%

0%

20%

40%

60%

80%

100%

120%

2Q/12 1Q/13 2Q/13 1H/12 1H/13

0.3

4.2

2.6 2.2

6.8

1.4

4.2 3.2

2.4

7.4

0.01.02.03.04.05.06.07.08.0

2Q/12 1Q/13 2Q/13 1H/12 1H/13

EBITDA Adjusted EBITDA

Aromatics BU Performance

24

Others

Ref+LN

CR

BZ+CX

PX group

Total Production Volume in Kton and Yield Total intake in kton

1,326 1,234 1,226

2,332 2,460 198 244 199

398 443

90% 92% 84%

90% 88%

0%10%20%30%40%50%60%70%80%90%100%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2Q/12 1Q/13 2Q/13 1H/12 1H/13

Condensate Reformate + Other feed BTX rate

Unit: USD/Ton 2Q/12 1Q/13 2Q/13 YoY QoQ 1H/12 1H/13 YoYCondensate 927 948 870 -6% -8% 1,932 1,819 -6%Paraxylene FECP-Condensate 569 669 539 -5% -19% 1,125 1,208 7%Benzene Spot Korea-Condensate 180 430 415 131% -3% 356 846 138%Naphtha-Condensate -34 13 -12 -65% -195% -19 1 -104%

Unit: USD/Ton 2Q/12 1Q/13 2Q/13 YoY QoQMarket P2F 191 394 325 70% -18% (LCM)/LCM Reversal -25 0 0 N/A N/A Hedging Gain/(Loss) -2 0 -1 N/A N/A Stock Gain/(Loss) -47 -1 -46 N/A N/A Accounting P2F 117 393 278 138% -29%

EBITDA and Adj. EBITDA in THB bn

1,396 1,357 1,312 2,669 2,506

7.759 9.6 8.31

15.0 17.9

2Q/12 1Q/13 2Q/13 1H/12 1H/13

88% 88% 90% 86% 89%

12% 12% 10% 14% 11%

2Q/12 1Q/13 2Q/13 1H/12 1H/13

Gas Naphtha

Olefins and Olefins Derivatives BU Performance

25

Sales Volume in Kton and Utilization Rates

*Olefins’ external sales

Price and Spread in USD/ton

Total intake

883

Olefins and Olefins Derivatives Adjusted EBITDA Margin in THB bn

Olefins Intake

972 1,012 1,766 1,984

Unit: USD/Ton 2Q/12 1Q/13 2Q/13 YoY QoQ 1H/12 1H/13 YoY

Naphtha 894 961 858 -4% -11% 958 910 -5%HDPE 1,387 1,482 1,443 4% -3% 1,391 1,463 5%LLDPE 1,357 1,477 1,433 6% -3% 1,338 1,455 9%LDPE 1,362 1,459 1,444 6% -1% 1,377 1,452 5%MEG 1,167 1,282 1,173 1% -9% 1,202 1,228 2%

Sale

Volume

Utilization

Rate

Sale

Volume

Utilization

Rate

Sale

Volume

Utilization

Rate

Sale

Volume

Utilization

Rate

Sale

Volume

Utilization

RateOlefins* 217 89% 200 97% 218 93% 1% 9% 392 87% 419 95% 7%

HDPE 197 104% 216 109% 193 96% (2%) (11%) 379 105% 410 103% 8%

LLDPE 70 77% 102 113% 70 72% 1% (31%) 169 88% 172 93% 2%

LDPE 54 98% 75 101% 71 99% 31% (5%) 114 84% 146 100% 28%Total 320 94% 393 109% 334 90% 4% -15% 660 93% 727 99% 10%

MEG 90 85% 83 97% 104 100% 16% 26% 159 82% 187 99% 18%

QoQ

2Q/2012 1H/12 1H/13

YoY

2Q/20131Q/2013

YoY

26

Phenol Performance

Sales Volume in Kton and Utilization Rates

Phenol and BPA P2F in USD/ton

Phenol and BPA Market Spread in USD/ton

P2F = PH + 0.62 AC – 0.872 BZ – 0.468 PY P2F = BPA - 0.853 PH – 0.275 AC

0.21 0.15

0.28

0.4 0.4

2Q/12 1Q/13 2Q/13 1H/12 1H/13

Phenol Adjusted EBITDA in THB bn

2Q/12 1Q/13 2Q/13 YoY QoQ 1H/12 1H/13 YoYPhenol 1,407 1,523 1,402 0% -8% 1,440 1,463 2%

Phenol-Bz 289 143 116 -60% -19% 291 129 -56%

BPA-Phenol 246 357 317 29% -11% 232 337 46%

2Q/12 1Q/13 2Q/13 YoY QoQ 1H/12 1H/13 YoY

Phenol Margin 431 405 338 -22% -17% 460 372 -19%

BPA Margin 185 282 221 19% -22% 166 252 52%

31 38 34

76 72

29 25 42

41.97 67

122% 126% 127%

110%

126%

27%

60%

116%

27%

88%

0%

20%

40%

60%

80%

100%

120%

140%

-

20

40

60

80

100

120

140

160

2Q/12 1Q/13 2Q/13 1H/12 1H/13

Phenol BPA Phenol U-rate BPA U-rate

27

2Q/13 Revenue Breakdown (%)

2Q/13 Adjusted EBITDA Breakdown (%)

Adjusted EBITDA Margin % by Core BU

Segmental Results – 2Q/13 Olefins and Olefins Derivatives Business contributed greatly to EBITDA

Refinery 36%

Aromatics 23%

Olefins and

Derivative 27%

Green 6%

HVS 8%

Others 0.02%

Refinery 41%

Aromatics 22%

Olefins and Derivative

25%

Green 6%

HVS 7%

Others 0.06%

1H/13 Revenue Breakdown (%)

Refinery 3%

Aromatics 26%

Olefins and

Derivative 67%

Green 2%

HVS -1% Others

3.59% Refinery 8%

Aromatics 25%

Olefins and

Derivative 61%

Green 3%

HVS 1% Others

2.66%

1H/13 Adjusted EBITDA Breakdown (%)

THB 12 Bn

THB 29 Bn

THB 112 Bn

THB 253 Bn

2Q/12 1Q/13 2Q/13Refinery 3 3 1Aromatics 5 14 12Olefins & Derivatives

27 30 28

Green 6 8 3HVS 17 4 -2

1H/12 1H/13Refinery 3 2Aromatics 5 13Olefins & Derivatives

27 29

Green 6 6HVS 12 1

2Q/13 Profit and Loss Statement

28

THB Mn % THB Mn % THB Mn % THB Mn % THB Mn %1 Sales Revenue 139,241 100 141,309 100 111,887 100 (27,354) (20) (29,422) (21)2 Feedstock Cost (117,992) (85) (112,119) (79) (87,594) (78) (30,398) (26) (24,525) (22)

3 Product to Feed Margin 21,249 15 29,190 21 24,293 22 3,044 14 (4,897) (17)

4 Variable Cost (3,995) (3) (6,903) (5) (6,204) (6) 2,209 55 (699) (10)5 Fixed Cost (3,374) (2) (4,128) (3) (4,163) (4) 789 23 35 1 6 Stock Gain/(Loss) & NRV (6,187) (4) (643) - (1,422) (1) (4,765) (77) 779 121

7 Gain/(Loss) Hedging Commodity 302 - 148 - 419 - 117 39 271 183

8 Other Income 2,064 1 1,324 1 1,362 1 (702) (34) 38 3 9 SG&A (2,522) (2) (2,569) (2) (2,819) (3) 297 12 250 10

10 EBITDA 7,537 5 16,419 12 11,466 10 3,929 52 (4,953) (30)

11 Depreciation & Amortization (4,057) (3) (3,952) (3) (4,187) (4) 130 3 235 6

12 EBIT 3,480 2 12,467 9 7,279 7 3,799 109 (5,188) (42)

13 Financing Expenses (Net Interest Earned) (1,373) (1) (1,115) (1) (1,120) (1) (253) (18) 5 -

14 FX Gain/(Loss) (1,281) (1) 1,986 1 (2,726) (2) 1,445 113 740 37

15 Shares of gain/(loss)from investments 101 - (18) - (22) - (123) (122) (4) (22)

16 Corporate Income Tax 628 - (1,220) (1) 509 - (119) (19) 1,729 142

17 Net Profit After Income Tax 1,555 1 12,100 9 3,920 4 2,365 152 (8,180) (68)

Portion of Net Profit: 18 Shareholders 1,508 1 12,075 9 4,172 4 2,664 177 (7,903) (65)19 Minorities 47 - 25 - (252) - 205 436 227 908

20 Adjusted EBITDA 13,422 10 16,914 12 12,469 11 (953) (7) (4,445) (26)

YoY QoQ2Q/20132Q/2012(Restate) 1Q/2013

1H/13 Profit and Loss Statement

29

THB Mn % THB Mn % THB Mn %1 Sales Revenue 272,906 100 253,196 100 (19,710) (7)2 Feedstock Cost (232,036) (85) (199,713) (79) 32,323 14

3 Product to Feed Margin 40,870 15 53,483 21 12,613 31

4 Variable Cost (7,135) (3) (13,107) (5) (5,972) (84)5 Fixed Cost (6,648) (2) (8,291) (3) (1,643) (25)6 Stock Gain/(Loss) & NRV (2,777) (1) (2,065) (1) 712 26

7 Gain/(Loss) Hedging Commodity 397 0 567 - 170 43

8 Other Income 2,817 1 2,686 1 (131) (5)9 SG&A (5,000) (2) (5,388) (2) (388) (8)

10 EBITDA 22,525 8 27,885 11 5,360 24

11 Depreciation & Amortization 7,961 3 (8,139) (3) (16,100) (202)

12 EBIT 14,563 5 19,746 8 5,183 36

13 Financing Expenses (Net Interest Earned) 2,698 1 (2,235) (1) (4,933) (183)

14 FX Gain/(Loss) (245) (0) (740) - (495) (202)

15 Shares of gain/(loss)from investments 59 0 (40) - (99) (168)

16 Corporate Income Tax 56 0 (711) - (767) (1,373)

17 Net Profit After Income Tax 11,624 4 16,020 6 4,396 38

Portion of Net Profit: 18 Shareholders 11,360 4 16,247 6 4,887 43 19 Minorities 264 0 (227) - (491) (186)

20 Adjusted EBITDA 24,904 9 29,383 12 4,479 18

YoY1H/12 1H/13

35 40

240 224

101 86

60 59

238 234

137 120

61 54

Strong Financial Position

30

Key Financial Ratios

As of Dec 31, 2012 As of Jun. 30, 2013

THB 409 Bn THB 436 Bn

Cash + ST Investment

CA

PPE

Non CA

Share holders’ Equity

IBD

Liab.

Statements of Financial Position ST Loan

2%

LT Loan 37% Deben

ture 61%

Interest Rate Currencies

70% Fixed 58% THB

30% Float 42% USD & Others

Loan Type

• Cost of long term debts ~ 5.0%

(Include W/H Tax)

• Average loan life after refinancing -

5.2 Years

Treasury policy Net IBD to Equity ratio of ≤ 0.7x Net IBD to EBITDA ratio of ≤ 2.4x

6.7

14.3 8.1 9.5

15.1 15.6

7.8 11.7

0.5

31.0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

PTTGC PPCL Others

Maturity of Financial Debt as at Jun. 30, 2013

THB 120 Bn

1.34 1.06 0.98

0.32 0.25 0.26

0.0x0.2x0.4x0.6x0.8x1.0x1.2x1.4x1.6x

31 Dec. 12 31 Mar. 13 30 Jun. 13

Net IBD / EBITDANet IBD/Equity

16.15% 16.39% 17.09%

10.43% 11.13% 11.80%

5%

10%

15%

20%

31 Dec. 12 31 Mar. 13 30 Jun. 13

ROEROARestructure of

Loan Portfolio

THB Bn

USD 4.5 Bn

USD 2 Bn from Debt Financing

USD 2.5 Bn from Cash Flows from Operation

CAPEX to Support Growth Approved and Uncommitted CAPEX Plan for year 2013 - 2017

31

31%

64%*

5% Core Uplift

1 Step Adjacencies

Green

USD 4.5 Bn Uncommitted CAPEX

USD 1 Bn secured from USD Bond Issued in Sep. 2012

Agenda

32

Oil Spill Update




Market Outlook

Key Trends for Petrochemical Market in 2H/13

33

Refinery

Aromatics

Crude oil prices expected to gradually increase toward the end of the year and average around 103 - 106 usd/bbl

PX spread in 2H/13 expected to be softened than 1H/13 from new PX capacities

BZ spread is expected to maintain in 2H13 due to the limited feedstock (Pygas) from lower run rate of Naphtha crackers, and improved BZ demand driven by SM

Country CompanyNameplate

Cap.Capacity Effective

Korea HC Petrochemical 2 800 800 Q1 2013

USA BP 400 233 Q2 2013

China Tenglong Aromatics 1 800 400 Q3 2013

China Petrochina Sichuan Petrochemical 650 162 Q4 2013

China Sinopec Hainan Refining 600 150 Q4 2013

China Tenglong Aromatics 2 800 200 Q4 2013

India ONGC Mangalore Petrochemicals 920 77 Q4 2013

Saudi Arabia SATORP (Al- Jubail) 660 55 Q4 2013

2013 Total 5,630 2,077

PX : New Expansion/Capacity 2013 (KTA)

Country Company Nameplate Cap.

Capacity Effective

Total Effe.Cap

Brazil Petroquimica Suape 700 642 Q1 2013 0.6Germany BP Schwedt -80 -80 Q1 2013

Indonesia MC C Indonesia 2 30 30 Q1 2013

China Luoy ang C hemical F ibre P lant -350 -204 Q2 2013 0.2Indonesia PT Indorama Petrochemicals [ Poly pr 480 375 Q2 2013

China Xianglu Petrochemicals 2 (Zhangzhou) 2,200 733 Q3 2013 0.7China Xianglu Petrochemicals 2 (Zhangzhou) 2,200 367 Q4 2013

Saudi Arabia Ibn Rushd 250 63 Q4 2013

Turkey Petkim Petrokimy a 30 8 Q4 2013 0.42013 Total 5.5 1.9

PTA : New Expansion/Capacity 2013 (KTA)

Key Trends for Petrochemical Market in 2H/13

34

Polymers

Olefins Ethylene price should gradually

increase in 2H/13 due to higher feedstock cost and high planned shutdown while new capacity is still limited - 800 KTA Sichuan (July-Aug)

China’s PE imported volume is still growing at 11% from 2012

HDPE price expected to improve from higher feedstock cost and improved demand while new supply still limited

LDPE price is expected to remain high due to PTTGC’s unplanned shut down (300KTA, 3.5 month) and Malaysia’ Petline (255KTA, 1 Sep for 45 days)

LLPE price is expected to remain under pressure from new supply

Asia Ethylene Volume Loss in 2H/13 • Mitsui Chem. 612 KTA 20 Jun-7 Aug • PTTGC I4-1 515 KTA Aug (1.5 months) • Mitsub Chem. 450 KTA Aug (1.5 months) • FPCC 1035 KTA Mid-Sep 1.5 (months) • ExxonMobil (Singapore) 875 KTA Oct (1 month) • Optimal (Malaysia) 600 KTA Sep (1.5 months)

New Asia and Middle East PE capacity in 2H/13 • HDPE Sinopec Wuhan 300 KTA (Jul 2013) (900 KTA) Sichuan PC 300 KTA (Aug 2013) NPC Kermanshah (Iran) 300 KTA (Dec 2013) • LDPE/EVA Sipchem/Hanwha 200 kTA (Q3 2013) • LLDPE Exxon Mobil Singapore 2x650 KTA (1,900 KTA) Sinopec Wuhan 300 KTA (Jul 2013) Sichuan PC 300 KTA (Aug 2013)

Source: * General Administration of Customs of the People's Republic of China, PTTPM

*

35

For further information & enquiries, please contact our Investor Relations Team at [email protected]

Thank You

1. Thitipong Jurapornsiridee VP - Corporate Finance & IR [email protected] +662-265-8574 2. Panugorn Puengpradit IR Analyst [email protected] +662-140-8714 3. Prang Chudasring IR Analyst [email protected] +662-265-8327

mailto:[email protected]




Appendices

36

USD/Barrel 2011 2012 2013 2014 2015 2016 Dubai Crude 106 117 116 113 116 121 Gasoline-Dubai 13 12 10 10 10 10 Jet-Dubai 19 17 16 16 17 18 Diesel-Dubai 18 16 14 14 15 15 Fuel Oil-Dubai -5 -4 -5 -5 -5 -5

USD/BBL USD/BBL

Source: PIRA, May 2012

13 12 10 10 10 10

19 17 16 16 17 18 18 16 14 14 15 15

-5 -4 -5 -5 -5 -5

106 117 116 113 116 121

120 129 126 123 126

131 126 134 132 128 132

138

125 133 130 126 130

136

101 113 111 107 111 116

-10

0

10

20

30

40

50

60

70

80

-20

0

20

40

60

80

100

120

140

160

2011 2012 2013 2014 2015 2016 Gasoline 95-Dubai Jet-Dubai Diesel-Dubai Fuel Oil-Dubai Dubai Crude

Gasoline 95 Jet Diesel Fuel Oil

Dubai Crude Oil prices pressured by economic slowdown but minimized by ME politics

37

434 407 427 435 345

439 466 438

961 858 868 845

1,395

1,265 1,294 1,280 1,306

1,297 1,333 1,283

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13 2Q/13 3Q/13F 4Q/13F

Olefins Improved derivatives demand will support to Olefins market

38

USD/Ton Short-term Price Forecast Short-Term • Olefins prices were expected to remain high in

2H-13 due to improve demand in derivatives markets in line with new PE plants in Asia will come on-stream

• However the market will be pressured from

1) Additional new supply in Asia (mainly from China) in the second half of the year

2) Turnaround and shutdown for maintenance of Asia cracker

3) Uncertain global economic outlook

Long-term Supply/Demand

Additional (2012-2017) (Unit : MMT)

Supply Demand 37.81 30.92

America22%

Middle East19%

Europe3%

China39%

Other Asia17%

Source: CMAI July 2013

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

2012 2013 2014 2015 2016 2017

America Europe Middle East China Other Asia Additional demand

Unit : KMT

Saudi Polymers Saudi 1,200 KMT Q3-11 to Q3-12

Reliance India 1,350 KMT Q1-16 to Q3-16

SINOPEC Wuhan CH 800 KMT Q1-11 to Q3-13

ExxonMobil SG 1,000 KMT Q3-11 to Q2-13

Sinopec Zhijin China 300 KMT Q4-14 to Q2-15

Daqing PC China 600 KMT Q1-11 to Q3-12

Fushun PC China 800 KMT Q1-10 to Q3-12

Sichuan PC China 1,000 KMT Q3-11 to Q3-13

Ilam Iran 458 KMT Q1-15 to Q1-16

BPCL India 220 KMT Q3-11 to Q4-15

CNOOC & Shell China 1,000 KMT Q1-16 to Q1-17

521 585 561 544 516

449 517 518 498

586 562 557

961 858 868 845

1,482 1,443

1,428 1,389 1,477

1,433 1,385 1,363 1,459

1,444 1,430 1,402

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13 2Q/13 3Q/13F 4Q/13F

Short-term Price Forecast USD/Ton Short-Term • More new PE supplies in Asia (Mainly

from China) and strong buying resistance from end-use producers due to squeezed margin will weigh on PE markets especially in the second half of the year

• However, due to Q3-early Q4’13 will be the high manufacturing season, it will support PE demand to be improve

Polyethylene The market will be pressured from new supply in the short term

39

HDPE Long-term Supply/Demand



America21%

Middle East22%

Europe4%

China42%

Other Asia11%

-5000

5001,0001,5002,0002,5003,000

2012 2013 2014 2015 2016 2017


Saudi Polymers Saudi 550 KMT Q3-11 to Q3-12

Ilam Iran 300 KMT Q1-14 to Q1-15 SINOPEC Wuhan CH

300 KMT Q1-11 to Q3-13

Saudi Polymers Saudi 550 KMT Q3-11 to Q1-13 BPCL India

110 KMT Q3-13 to Q4-14

Daqing PC China 400 KMT Q1-11 to Q3-12

OPAL India 350 KMT Q1-13 to Q3-14


Sichuan PC China 300 KMT Q1-12 to Q3-13

Shanxi Coking Corp China 150 KMT Q2-15 to Q2-16

Unit : KMT

LLDPE & LDPE New Capacities and Closures

40 Source: CMAI July 2013

LDPE Long-term Supply/Demand

LLDPE Long-term Supply/Demand





America19%

Middle East13%

Europe0%

China39%

Other Asia29%

America22%

Middle East30%

Europe11%

China28%

Other Asia7%

-5000

5001,0001,5002,0002,5003,0003,500

2012 2013 2014 2015 2016 2017 America Europe Middle East China Other Asia Additional demand

Unit : KMT

SINOPEC Wuhan China 300 KMT Q1-11 to Q3-13

ExxonMobil Sing. 1,300 KMT Q1-11 to Q4-12


Sichuan PC China 300 KMT Q3-12 to Q3-13

OPAL India 350 KMT Q1-13 to Q3-14

Yulin Energy China 300 KMT Q2-13 to Q2-14

CNOOC & Shell China 300 KMT Q1-16 to Q1-17

-500

0

500

1,000

1,500

2,000

2012 2013 2014 2015 2016 2017


Unit : KMT

QAPCO Qatar 300 KTA Q1-12 to Q3-12

Borouge UAE. 350 KTA Q1-14 to Q3-14

Reliance India 400 KTA Q1-15 to Q3-16

Short-term Price Forecast USD/Ton Short-Term • New MEG supplies will come on-stream in the

second half of the year and persistently high port inventories in China will affect the market.

• However, buying sentiment is expected to be driven up from stronger demand in the downstream textiles and fabrics sectors in China due to seasonal demand and more new Polyester supply will start up in the second half of the year 2013

375 351 288

361

961 858 868 845

1,395 1,265 1,294 1,280

1,282 1,173 1,129

1,193

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13 2Q/13 3Q/13F 4Q/12F

MEG the market will be robust due to seasonal and strong derivative demand

41

MEG Long-term Supply/Demand



America18%

Europe5%

Middle East17%India

5%

China52%

Other Asia3%

Source: PCI June 2013

0

1,000

2,000

3,000

4,000

5,000

6,000

2012 2013 2014 2015 2016 2017

America Europe India Middle East

China Other Asia Additional demand

Petrochina Sichuan China 380 KTA Q3-13 to Q4-13

Henan Coal Chemical China 400 KTA Q1-13 to Q3-12

Qianxi Coal Chem China 400 KTA Q3-13 to Q1-14

Ningbo Heyuan China 500 KTA Q4-12 to Q1-13

Unit : KMT

Henan Coal Chemical China 400 KTA Q1-13 to Q4-12

Short-term Price Forecast Short-Term • PX demand in year 2013 will be supported

from new PTA plants in Asia (especially in China) will start up in and high manufacturing season in textile and fabric sectors in China

• However, additional new supply in Asia in 2H-13 and squeezed PTA margins and high inventory levels among downstream Polyester market will affect the PX market

USD/Ton

657 551 534 520

961 858 868 845

1,618

1,409 1,402 1,365

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1Q/13 2Q/13 3Q/13F 4Q/13F

Paraxylene Derivatives demand will support PX market

42

PX Long-term Supply/Demand



Source: PCI June 2013

America2% Europe

4%Middle

East23%

India15%

China20%

Other Asia36%

0

1,000

2,000

3,000

4,000

5,000

6,000

2012 2013 2014 2015 2016 2017

America Europe India Middle East China Other Asia Additional demand

PetroRabigh Saudi. 1,400 KTA Q3-15 to Q3-16

SK Energy S. Korea 800 KTA Q3-12 to Q1-14

Unit : KMT

Dalians Fujia2 China 700 KTA Q3-12 to Q4-12

Tenglong Aromatics1 China 800 KTA Q2-12 to Q2-13

Short-term Price Forecast USD/Ton Short-Term • Benzene supply will depend on the

shutdown for maintenance of Aromatics plants and higher operating rate of Cracker in Asia due to high margin

• In addition, Benzene market will be depend on volatile crude and feedstock prices and improve demand from derivatives (SM and Phenol) market

428 429 364 367

961 858

868 845

1,389 1,287 1,232 1,212

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13 2Q/13 3Q/13F 4Q/13F

Benzene the market will still be driven by the main products

43



BZ Long-term Supply/Demand

America1%

Middle East9% Europe

2%China33%

Other Asia55%


-500

0

500

1,000

1,500

2,000

2,500

3,000

2012 2013 2014 2015 2016 2017


Daqing PC China 150 KTA Q1-13 to Q3-12

Anqing PC China 54 KTA Q3-12 to Q1-13

Samsung Total PC S. Korea 422 KTA Q4-14 to Q3-14

Nghi Son Vietnam 246 KTA Q1-15 to Q3-17

ExxonMobil Sing. 340 KTA Q1-13 to Q2-13 Unit : KMT

Reliance India 260 KTA Q1-16 to Q-15

Short-term Price Forecast USD/Ton

Short-Term • Phenol market remain continue to face

rising cost and weak supply/demand balances

• Additionally, Phenol market will be pressured from new additional supply in Asia, mainly from China in the second half of the year 397 407

243 239

1,380 1,277 1,232 1,257

1,612 1,531

1,327 1,345

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1Q/13 2Q/13 3Q/13F 4Q/13F

Phenol Will be pressured from high feedstock prices and new additional supply

44



Phenol Long-term Supply/Demand

America1%

Europe2%

China68%

Other Asia55%


-500

0

500

1,000

1,500

2012 2013 2014 2015 2016 2017


Unit : KMT Lihuayi Group Taiwan 217 KTA Q1-13 to Q4-12

INEOS/Yangzi PC China 400 KTA Q3-14 to Q1-16

FCFC China 300 KTA Q4-13 to Q1-14

SSMC China 250 KTA Q4-13 to Q1-14

Kumho P&B S. Korea 300 KTA Q3-14 to Q1-15

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