FY/13 Analyst Meeting Presentation. St. Regis Hotel February 21, 2014

Transcription

1 FY/13 Analyst Meeting Presentation St. Regis Hotel February 21, 2014

2 Disclaimer 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. 2

3 Agenda 2013 Achievement From Strategies to Execution 2013 Operating Results Market Outlook Conclusion Appendix PTTPE + LLPE Expansion Projects Green Business Roadmap Debottlenecking/Expansion Projects 2014 Shutdown Plan 3

4 Agenda 2013 Achievement From Strategies to Execution 2013 Operating Results Market Outlook Conclusion Appendix PTTPE + LLPE Expansion Projects Green Business Roadmap Debottlenecking/Expansion Projects 2014 Shutdown Plan 4

5 Our 2013 Achievements in a Challenging Business Environment Macro Economic Factors - Chinese Economic Slow down - THB Fluctuation - Thailand s Political Uncertainty - QE Tapering + US slowly Recover 1 2 Plant Operational Performance Excellence Programs 3 Foundation for Growth 4 Awards and Recognition 2013 NP: 33,277 MB Petrochemical Market Factors ± Oil Price Fluctuation + Stronger Petrochemical market External Operation Factors - Lower Ethane supply due to PTT s GSP#5 Unplanned S/D Internal Operation Factors - Unplanned S/D LDPE - Oil Spills Incident 5

6 Our 2013 Achievements in a Challenging Business Environment 1. Plant Operational Performance 2. Excellence Programs Achievements 2013 Performance VS Target Plant Refinery Aromatics Olefins HDPE LLDPE LDPE EO/EG ME+FA Phenol BPA Plant Reliability Energy Efficiency Aim for improvement and achieving more challenging targets going forward Excellence Programs FY13 EBITDA FY 13 Uplift Target 1. Operational Excellence Total 47 Projects achieved - 27 Energy saving Projects - 5 Plant reliability Projects - 15 Cost reduction, Y ield improvement Optimization 2. Marketing Excellence Customer Porfolio Management - Product Development - Pricing Excellence 3. Synergy Projects Off Gas upgrading at Olefins - C3/C4 upgrading at Olefins - Heavy Aromatics - 3 Streams (Heavy gasoline, LGB, CB) 4. Opportunity Synergy Projects Biodiesel Export to China (B-100 from TOL blend with Diesel from Refinery) - Due to I-4/1 TA, transfer excess offspec Raw Pygas (normally flare) to upgrade at ARO2 - Due to I-4/1 TA, transfer excess offspec C3C4 from PTTPE Cracker to Refinery C3C4 pool for Total

7 Our 2013 Achievements in a Challenging Business Environment 3. Foundation for Growth Core Uplift BV Project TOCGC Plant Improvement PX Expansion Project PTTPE Cracker Debottlenecking LLDPE Expansion Phenol 2 1-Step Adjacency New Geography Signed HOA JV Manufacturing and JV Marketing and Trading Signed MOU to jointly explore potential collaboration e.g., PU and PC chains and Bio-based chemicals and strengthen sales & market in China HVS Products Signed MOU to study downstream product that yield benefit and fits with PTTGC s strategy 4. Awards and Recognition #18 in ICIS Top 100 Chemical Companies in 2013 #607 in Forbes Global 2000 Board of the year Awards 2013 for Distinctive Practices Excellence in Labor Conditions AMCHAM CSR Excellence Recognition 2013 Silver level in Creative partnership Carbon Disclosure Project Leadership in environmental management All grades of POL & EOB has been certified with Carbon Footprint Labeling Scheme 7

8 Agenda 2013 Achievement From Strategies to Execution 2013 Operating Results Market Outlook Conclusion Appendix PTTPE + LLPE Expansion Projects Green Business Roadmap Debottlenecking/Expansion Projects 2014 Shutdown Plan 8

9 Taking PTTGC s Strategies into Execution The Double E ( ) E Excellence Execution Green Ole Chemical PLA Succinic Acid PLA/PBS Compound EBITDA Uplift 15-30% ( ) 1 st Quartile Performance 1-Step Adjacencies System House Compounding PU, PC, SBR, Nylon, ASEAN: Pertamina, China: Sinochem, USA Shale Gas ROIC > 14% Listed in Globally Sustainability Index Core Uplift Projects Operational Excellence Marketing Excellence Synergy Excellence Debottle- Necking PTTGC Business Principle: People Conduct & Business Conduct 9

10 Execution of Core uplift Projects according to Target Core Uplift 1-Step Adjacencies Green Business Operational Excellence EBITDA Uplift 42 projects to be executed Continuous improvement programs to realize value Plant Reliability Improvement, Energy Improvement Safety / incident rate Improvement Other Improvement (Cost saving, Equipment replacement for value added) 2 Marketing Excellence 2014 New Initiatives - Develop new products (launch 8 grades; 4 improvement grades & 4 new grades) - Increase specialty product volumes (HVP grade) - Expand PE product into domestic market - Manage PE strategic pricing by Segment Continue on Marketing strategy Product development Customer value Strategic pricing Build global reach Sales force effectiveness Established Marketing Academy Roadmap Develop CRM Roadmap Conduct Customized Training & Established Evaluation System Expand CRM utilization to all BUs 10

11 Execution of Core uplift Projects according to Target Core Uplift 1-Step Adjacencies Green Business 3 Synergy Pure H2 via New PSA Off Gas upgrading at Olefins Debottlenecking & Expansion TOCGC Plant Improvement Project BOD approved EPC + Construction Construction Progress at 95.3% Construction Progress at 43.15% Construction Progress at 16.7% Target COD: 2Q/14 Target COD: 4Q/14 Seek for additional and opportunities Synergy Benefits Target COD: 3Q/15 PX Expansion BOD approved EPC + Construction Construction Progress at 5.3% Target COD: 4Q/15 Phenol 2 Project BOD approved EPC + Construction Construction Progress at 34.5% Target COD: 3Q/15 PTTPE Cracker Debottlenecking BOD approved Project BEP BOD approve EPC Construction Target : 2016 LLDPE Expansion BOD approved Project BEP BOD approve EPC Construction Target : 2017 Note: Progress as of Jan

12 Excellence Programs Target Core Uplift 1-Step Adjacencies Green Business * Original Target * Debottleneck EBITDA uplift includes 1Q/14 BV project starts up 3Q/15 TOCGC Plant Improvement Project 4Q/15 PX Expansion starts up Not Including PTTPE Cracker Debottlenecking and LLDPE Expansion * Adjusted Target Revised Operational Excellence target Include only projects passed stage gates 12

13 Execution > 5 Growth Projects in the next 5 years Possible downstream Investment New Products New Geographies Core Uplift 1-Step Adjacencies Green Business Ethylene EO MEG HDPE LDPE LLDPE Ethanolamine Products Applications Propylene EB/SM PO Polyols Ethoxylate PS ABS Mixed C4 Butadiene SBR PP Benzene PTT Phenol Cumene Phenol Acetone BPA PC Epoxy Resins Toluene Cyclohexane MMA PMMA Caprolactam Nylon 6 HDMA Paraxylene HDI TDI System House PU PTA Polyester Fiber Orthoxylene PA PET Resin Plasticizer Petroleum Products Oleochemicals PLA Plant Fatty Alcohol Methyl Ester (B-100) - LPG - Reformate - Light Naptha - Jet Fuel - Diesel - Fuel Oil PLA Succinic Acid Plant Succinic Acid Potential Product Opportunities 13

14 Execution > 5 Growth Projects in the next 5 years 1 st Screen for Further Feasibility Study New Products New Geographies Core Uplift 1-Step Adjacencies Green Business Ethylene Propylene Mixed C4 Benzene Toluene EO EB/SM PO Butadiene PTT Phenol Cumene Cyclohexane Phenol HDMA Adipic Acid Polyols Phenol Acetone MEG BPA MMA HDPE LDPE LLDPE Ethanolamine Ethoxylate PS ABS SBR PP PC Epoxy Resins PMMA Caprolactam Nylon 6 Nylon 6,6 Commodity Compounding Using additives and modifiers to result with a particular color, texture, strength, and etc. New Application Compounding Blending two or more types of polymers together Polymer Compounding PC Compounding Paraxylene Orthoxylene PA HDI TDI PTA System House PU Polyester Fiber PET Resin PU Chain System House HDI Derivatives Petroleum Products Oleochemicals PLA Plant Succinic Acid Plant Fatty Alcohol Methyl Ester (B-100) 1 st Screen for Further Feasibility Study Plasticizer - LPG - Reformate - Light Naptha - Jet Fuel - Diesel - Fuel Oil PLA Succinic Acid Bio-plastics Compounding Not qualify for 1 st Screen 14

15 Execution > 5 Growth Projects in the next 5 years Expanding to New Geographies New Products New Geographies Core Uplift 1-Step Adjacencies Green Business Signed JV Marketing & Trading Incorporation Marketing and Trading JV Target May 14 Distribution of PTTGC s products in Indonesia Signed HOA JV Manufacturing Finalize Site Location and Setup JV Company COD New Cracker + Downstream Petrochemical Target: 2018 Cooperation on Trading activities in China Study of possible of downstream Petrochemical Study for Backward Integration 15

16 Agenda 2013 Achievement From Strategies to Execution 2013 Operating Results Market Outlook Conclusion Appendix PTTPE + LLPE Expansion Projects Green Business Roadmap Debottlenecking/Expansion Projects 2014 Shutdown Plan 16

17 Business Environment and Operations Recap Q/ Q/ Q/12 3Q/ Q/12 3Q/12 *Source: BOT Selling Rate Dubai Crude ($/BBL) Q/ Q/12 1Q/ Q/13 THB/USD* Q/ Q/ Q/ Q/ Q/ Q/ Dubai crude reduced from average at 109 $/BBL in 2012 to average 106 $/BBL in 2013 from higher non-opec supply despite the unrests in oil producing countries. However, Dubai crude opened at around 106 $/BBL and closed at around 108 $/BBL in 2013, contribute to Stock Gain Net NRV of 3,029 MB FX Loss amounting to 2,272 MB, from Baht depreciation, which was led by the US FED s signal on QE tapering, in addition with Thailand s Political unrest. Most Products Price/spreads increased Diesel-Dubai USD/BBL -6% YoY FO Dubai USD/BBL -140% YoY PX-Cond 557 USD/Ton +3% YoY BZ-Cond 380 USD/Ton +45% YoY HDPE 1,488 USD/Ton +8% YoY MEG 1,202 USD/Ton +2% YoY Overall utilization rate of major businesses % +/- Refinery CDU Utilization (%) % Aromatics BTX Utilization (%) % Olefins Utilization (%) % Polymers Utilization (%) % EO Based MEG Utilization (%) % Green ME Utilization (%) % FA Utilization (%) % Phenol Phenol Utilization (%) % 17

18 Petroleum Product Spread Sales Volume Portion $/BBL Refinery Performance Lower U-Rate and GRM Jet-Dubai Diesel-Dubai FO-Dubai Gasoline-Dubai Q12 1Q13 2Q13 3Q13 4Q % 14% 9% 12% 55% 51% 13% 14% 7% 8% LN+Ref Jet Diesel FO Others Note: In 2013, Refinery had Planned Turnaround of38 days Petroleum Product Spread $/BBL YoY % + /(-) Dubai % Gasoline-Dubai % Jet-Dubai % Diesel-Dubai % FO-Dubai % Petroleum Sales Volume YoY % + /(-) CDU Utilization Rate 100% 91% -9% Sales ('000 BBL) Jet 6,293 7,472 19% Diesel 38,799 31,005-20% $/BBL YoY % + /(-) Market GRM % CDU GRM % CRS GRM % Stock (+/-) net NRV N/A 18

19 Aromatics Performance Higher U-Rate and higher P2F from outperform BZ Aromatics Product Spread Sales Volume Portion $/Ton 1, Condensate PX FECP- Cond BZ-Condensate Q12 1Q13 2Q13 3Q13 4Q % 11% 24% 28% 37% 38% 24% 23% Other By-Products Ref+LN Paraxylene Group Benzene Group Aromatics Product Spread $/Ton YoY % + /(-) Condensate % PX- Cond % BZ-Cond % Aromatics Sales Volume YoY % + /(-) BTX Utilization Rate 86% 90% 4% BTX Sales Volume ('000 Ton) 1,803 1,871 4% YoY % + /(-) Market P2F ($/Ton) % Stock Gain/(Loss) ($/Ton) N/A 19

20 Olefins and Derivatives Performance HDPE Price Significantly Increase Product Spread $/Ton 1,800 Sales Volume Portion 1,600 1,400 1,200 1, Naphtha HDPE LLDPE LDPE MEG 1,664 1,569 1,534 1,459 1,444 1,369 1,549 1,362 1,477 1,490 1,487 1,399 1,433 1,354 1,247 1,282 1,173 1,208 1,143 1,179 1, Q-12 1Q-13 2Q-13 3Q-13 4Q Olefins & Derivatives Price $/Ton YoY % + /(-) Naphtha % HDPE 1,380 1,488 8% LLDPE 1,354 1,487 10% LDPE 1,362 1,534 13% MEG 1,179 1,202 2% Olefins&Derivatives Volume YoY % + /(-) Utilization Rate Olefins 88% 90% 2% HDPE 99% 104% 5% LLDPE 100% 100% 0% LDPE 88% 70% -18% EO 101% 106% 6% MEG 88% 94% 6% Sales Volume ( 000 Ton) HDPE % LLDPE % LDPE % MEG % YoY % + /(-) Adj. EBITDA Margin 27% 27% - 20

21 Phenol Performance Increasing U-Rate but lower Spread Product Spread Sales Volume Portion $/Ton % 80% 60% 40% 20% Phenol-BZ BPA-Phenol Q-12 1Q-13 2Q-13 3Q-13 4Q % 42% 58% 54% 46% BPA Phenol Phenol Product Spread $/Ton YoY % + /(-) Phenol-BZ % BPA-Phenol % Phenol Sales Volume KTon YoY % + /(-) Phenol % BPA % Phenol BPA Utilization Rate % YoY % + /(-) Phenol 119% 126% 7% BPA 74% 100% 26% 21

22 Overview of Business Units Performance Olefins and Olefins Derivatives is still the major contributor % Adj. EBITDA Margin Revenue Breakdown 5% 6% 1% 0% 5% 5% 21% 563 BB 48% 23% 549 BB 20% 21% 45% Refinery Aromatics Olefins Adj. EBITDA Breakdown 1% 3% 5% 11% 16% 3% 3% 4% 56% 57 BB 16% 60% 55 BB 21% Green HVS PTTGC

23 2013 P&L Statement Slightly Soften from 3 Incident FY/12 FY/13 YoY 4Q/13 THB Mn % THB Mn % THB Mn % THB Mn % 1 Sales Revenue 562, , (13,622) (2) 154, Feedstock Cost (468,595) (83) (444,890) (81) 23, , Product to Feed Margin 94, , , , Variable Cost (17,148) (3) (26,610) (5) (9,462) (55) (7,407) (5) 5 Fixed Cost (15,554) (3) (16,992) (3) (1,438) (9) (4,785) (3) 6 Stock Gain/(Loss) & NRV , ,854 1,631 1, Gain/(Loss) Hedging Commodity , Other Income 5, , , SG&A (10,732) (2) (12,571) (2) (1,839) (17) (3,375) (2) 10 EBITDA 57, , , , Depreciation & Amortization (16,647) (3) (16,670) (3) (23) (0) (4,381) (3) 12 EBIT 40, , , , Financing Expenses (Net Interest Earned) (5,523) (1) (4,525) (1) (1,146) (1) 14 FX Gain/(Loss) (2,272) (0) (3,183) (349) (794) (1) 15 Shares of gain/(loss)from investments (44) (0) (78) (0) (34) (77) Corporate Income Tax (1,416) (0) (1,976) (0) (560) (40) (557) (0) 17 Net Profit After Income Tax 34, ,841 6 (1,608) (5) 7,227 5 Portion of Net Profit: 18 Shareholders 34, ,277 6 (724) (2) 7, Minorities (436) (0) (884) (197) (194) (0) 20 Adjusted EBITDA 56, , (1,660) (3) 12,763 8 Note: Adjusted EBITDA = EBITDA Stock Gain/(Loss) &NRV 23

24 3Q/13 VS 4Q/13 Performance Unit : MB 3Q/13 4Q/13 QoQ Operating Net Profit : Refinery 1, % Aromatics 1, % Olefins 3,026 4,031 33% Polymers (PE,BPE&I-1) 1,109 1,214 9% EO Based (TOCGC) % Green (TOL&TFA) % PPCL % Inter group % Services&Others* % Operating NI Total 7,269 7,249 0% Non-recurring items Stock Gain (Loss)&NRV 3,768 1,326-65% FX Gain (Loss) % DTA (DTL) n.a. Oil Spill -1,059 0 n.a. LPG Oil Fund n.a. Step up gain (Myriant) 197 n.a. Total Non-recurring 2, % Grand Total 9,610 7,420-23% Refinery Unit 3Q/13 4Q/13 QoQ CDU U-Rate % 98% 103% 5% Diesel-Dubai $/BBL % Gasoline-Dubai $/BBL % GRM $/BBL % Aromatics Unit 3Q/13 4Q/13 QoQ BTX U-Rate % 91% 93% 2% PX-Cond $/Ton % BZ-Cond $/Ton % P2F (BTX) $/Ton % Condensate splitter shutdown for 20 days, condensate intake decreased 2%, reformate intake increased Olefins & Derivatives Unit 3Q/13 4Q/13 QoQ Olefins U-Rate % 75% 90% 15% Polymer U-Rate % 88% 99% 11% HDPE-Naphtha $/Ton 1,489 1,536 3% 4Q/13 Gas : Naphtha ratio = 88:12 3Q/13 Gas : Naphtha ratio = 94:6 %EBITDA Margin 3Q/13 4Q/13 Refinery 2 3 Aromatics 8 5 Olefins and Derivative Green 9 10 HVS 4 1 Average

25 Strong Financial Position Cash + ST Investment CA PPE Non CA Statements of Financial Position THB 436 Bn THB 432 Bn As of Dec 31, 2012 As of Dec. 31, 2013 Liab. IBD Share holders Equity Loan Type THB 120 Bn Interest Rate 63 % Fixed 53 % THB Currencies 37 % Float 47 % USD & Others Cost of long term debts ~ 4.88% (Include W/H Tax) Average loan life after refinancing Years Treasury policy Net IBD to Equity ratio of 0.7x Net IBD to EBITDA ratio of 2.4x Maturity of Financial Debt* as at Dec. 31, 2013 THB Bn PTTGC PPCL Others * After Refinance 1.6x 1.4x 1.2x 1.0x 0.8x 0.6x 0.4x 0.2x 0.0x Net IBD / EBITDA Net IBD/Equity Dec Dec. 13 Key Financial Ratios 20% 15% 10% 5% ROE ROA % % % 9.42% 31 Dec Dec

26 CAPEX to Support Growth Approved and Uncommitted CAPEX Plan for year Years Investment CAPEX Approved CAPEX Plan Unit: USD mn Green 1-step Core uplift Phenol* Annual Maintenance Total A * Including the 40% acquisition of Phenol and Phenol 2 Project 26

27 Agenda 2013 Achievement From Strategies to Execution 2013 Operating Results Market Outlook Conclusion Appendix PTTPE + LLPE Expansion Projects Green Business Roadmap Debottlenecking/Expansion Projects 2014 Shutdown Plan 27

28 Crude Oil: Abundant Supply Will Soften Crude Oil Price IEA Raised Global Demand Growth Forecast to While Net Oil Global Supply Grows 1.6 MBD 1.3 MBD Demand Unit: MBD 0.4 China 0.3 Other Asia 0.2 ME Latin America GDP 2013 (E) 2014 (F) U.S EU China World Africa America FSU EU OPEC NGL OPEC Crude Non-OPEC Crude Source: IEA (Feb 14), IMF (Jan 14) Oceania Source: IEA (Feb 14) 2014 Dubai Crude Price Will Be Lower U.S. shale oil production increase 1.2 MBD in 2014 Iraq and Libya will increase 1.5 MBD their production output Saudi Arabia may cut back output as much as 1.1 MBD to support prices Avg % 2014 Avg Unit: $/bbl Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Source: PRSIM (Feb 14) 28

29 Refinery: 2014 GRM Slightly Improve as New Capacity Start-ups Delay 2,500 2,000 1,500 1, ,000-1,500 Add Supply Major Global Capacity Addition Will Be Postponed to RoW Middle East Asia Demand Diesel Gasoline -7.3 Unit: KBD -204 (net) -3.6 Demand Growth ,114 Source: JBC (Jan 14) Est. Rest of the World Middle East Asia 2014 Product Crack Spread Slightly Improve Unit: $/bbl Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Source: PRSIM (Feb 14) FO 2013 GRM* : $8.19/bbl 2014 GRM* : $8.39/bbl Note: GRM* not include fuel & loss and UT Cost 2014 Asian Capacity Addition Will Match with Demand 1,600 1,400 1,200 1, Unit: KBD Source: JBC (Jan 14) Demand Growth Est Marketing Excellence 2014 MKT. Portfolio Internal Use 5% (8 KBD) Export 32% (52 KBD) Domestic 63% (101 KBD) Total 161 KBD Increase domestic portfolio Capture higher-value market with product development Implement strategic pricing and channel management 29

30 Benzene: Another Year of Satisfactory Spread Unit: MT 2.0 Operating Rate Supported by Demand from SM and Phenol % Asian OR % OR 80% 1,400 Spread Supported by F/S Constraint in U.S. Unit : $/MT 1,379 1,292 Avg ,301 3% Avg ,258 Spread : $/MT Demand Growth (0.0) Capacity Addition % Global OR % 60% 50% 40% 30% 1,200 1, ,287 1, ,249 1,237 1, Spread : BZ-MOPJ Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q % Avg. Spread = 379 Avg. Spread = 364 Unit: MTA Unit: MTA U.S.A 0.3 Strong Regional Demand by U.S. and China import China Note: IHS CMAI: Price & Supply/Demand, As of Date 18 Feb MKT. Portfolio Export 51% (305 KT) 2014 Marketing Excellence Domestic 12% (72 KT) Total 598 KT Internal Use 37% (221 KTA Optimize BZ and phenol production to maximize value in BZ chain More domestic demand from IRPC s SM expansion Leverage China import tax incentive to penetrate into China Market 30

31 Paraxylene: Huge Capacity Addition Will Lower Price and Spread Unit: MMT Unit: MMT Taiwan China Capacity Jump, Operating Rate Slump 1.2 % Asian OR Capacity Addition Demand Growth % Global OR Strong Regional Demand by China and Taiwan import %OR 100% 90% 80% 70% 60% 50% 40% Unit : $/MT , MKT. Portfolio Domestic 77% (859 KT) Entering towards down-cycle 1,417 1,449 1, Spread : PX-MOPJ Marketing Excellence Export 23% (256 KT) 1,348 1,318 1,282 1, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Avg. Spread = 561 Avg. Spread = 411 Total 1,115 KT Avg ,483 12% Avg ,305 Spread : $/MT Secure domestic sales with long-term contract Leverage China import tax incentive to penetrate China Market Secure sales volume by term contract to China Note: IHS CMAI: Price & Supply/Demand, As of Date 18 Feb

32 Ethylene: Towards Up-cycle in Additional Demand/Supply Remain Balanced in MMT America Europe Middle East China Other Asia Demand Growth 2014 Ethylene Price Keep Climbing Capacity addition Operation Rate will be peak in 2015 MMT %OR % % Global OR Capacity 87% % Demand % Source: IHS 2014 Marketing Excellence Unit : $/MT 1, Avg.1,352 1,265 1, % 2014 Avg.1,381 1,427 1,435 1,375 1,346 1,370 Higher planned turnaround in 1H Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Avg. Ethylene-MOPJ spread 431 Avg. Ethylene-MOPJ spread MKT. Portfolio Internal 80% (1,804 KTA) Domestics 20% (451 KTA) Total = 2,255 KT Maximize value chain as internal feedstock Enhance value by domestic long-term contract Export unbalance from downstream turnaround 32

33 Propylene: SEA Spread Increase Despite of New On-purpose Capacity in China MMT Global operating rate will be pressured from large capacity additions Capacity addition %Global OR %OR 87% 82% 77% 72% % America Europe Middle East China Other Asia Demand Growth SEA Price Supported by regional Supply/Demand Unit : $/MT 2013 Avg. 1, % 2014 Avg. 1,356 1,306 1,297 1,336 1,366 1,384 1,350 1,341 1,350 Peak Turnaround in 1H supply gradually increase from new PDH and CTO/MTO in China Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Avg. Prop.-MOPJ spread 405 Avg. Pro.-MOPJ spread 447 While Tighter SEA Supply/Demand in 2014 due to Lack of Capacity Addition MMT Export 47% (201 KTA) % SEA OR Forecast %OR 90% 85% 80% 75% 70% 65% 60% Source: IHS 2014 Marketing Excellence 2014 MKT. Portfolio Internal 25% (107 KTA) Domestics 28% (120 KTA) Total = 428 KT Capacity SEA becomes net import in 2014 Demand Maximize value chain via PTT Phenol Enhance value by domestic long-term contract Sell term export to niche market and enduser 33

34 Polyethylene: Economic Growth Widens Spread 2014 HDPE market will be tightened due to lack of capacity additions MMT Capacity HDPE Price Trend LDPE Price Trend LLDPE Price Trend 1,482 1,443 1,489 1,536 1,574 1,512 1,508 1, Avg. 1,488 % Global OR Demand %OR 85% 83% 81% 79% LDPE prices stand in high level LLDPE up trend during MMT ,459 1,444 1,569 1,664 1,680 1,659 1,639 1,653 MMT ,490 1,545 1,574 1,507 1,503 1,522 1,477 1, % % % Avg. 1, Avg. 1,531 Avg. 1,534 Avg. 1, Demand Total Capacity %Operating rate Demand Total Capacity %Operating rate Demand Total Capacity %Operating rate %OR 90% 85% 80% 75% 70% 2014 Avg. 1,527 %OR 90% 85% 80% 75% 70% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Avg. HDPE-MOPJ 566 Avg. HDPE-MOPJ 622 Avg. LDPE-MOPJ 613 Avg. LDPE-MOPJ 759 Avg. LLDPE-MOPJ 565 Avg. LLDPE-MOPJ HDPE MKT. Portfolio Domestic 40% Export 60% Total = 844 KT 2014 LDPE MKT. Portfolio Domestic 44% Export 56% Total = 309 KT 2014 LLDPE MKT. Portfolio Domestic 42% Export 58% Total = 401 KT 2014 Marketing Excellence Expand PE domestic market share Develop more High Value Products (HVP) Increase value based pricing by segmentation Leverage tax incentive to export to AEC, China and Japan 34

35 MEG: Lacking of New Capacity to Support Price and Spread MMT Lacking Capacity Additions in 2014 Demand growth =1.37 million tons Capacity addition = 1.12 million tons Global Supply/Demand remain tight till 2015 MMT %Global OR Capacity %OR 85% Forecast 80% 75% 0.0 1, Fundamental & Middle East Turnaround support Price Trend Unit : $/MT 2012 America Europe 2015 India 2016 Middle East China Other Asia Demand Growth Avg. 1, % 1,065 1,045 1, , Avg. 1,207 1,280 1, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 MEG Ethylene MEG CMP Avg. MEG P2F Margin176 Avg. MEG P2F Margin Export 6% (23 KTA) 70% 65% Consumption Capacity Utilisation Source : PCI Domestics 94%, (360 KTA) 2014 Marketing Excellence 2014 MKT. Portfolio Total = 383 KT Demand Leverage premium quality and logistic advantage by selling term contract in Domestic market Penetrate high-margin segment in Europe Leverage tax privilege in AEC countries (i.e. Indonesia, Vietnam) 35

36 Phenol: Continue Pressured from High Feedstock cost and New Additional Supply Continue Massive Capacity Addition from China MMT Unit : $/MT 1, China Other Asia Additional demand Oversupply Squeezes Margin 1, Avg. 1,416 1,352 1,387 1,422 1,401 1,387 1,396 Demand growth has stalled High feedstock cost New additional supply in Asia Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Phenol BZ -1.1% 2014 Avg. 1,401 Phenol spot CMP Avg. Phenol Margin 269 Avg. Phenol Margin 273 MMT Export 23% (53 KT) Operating Rate Slump, Capacity Jump Domestics 20% (46 KT) % Global OR Capacity %OR 90% 85% 80% 75% 70% 65% 60% 55% 50% Demand Capacity %OR Source : IHS 2014 Marketing Excellence 2014 MKT. Portfolio Internal 56% (128 KT) Total = 227 KT Demand Leverage premium quality and logistic advantage to maximize domestic sales Expand market to S.China, India Explore sales opportunity in US market 36

37 Methyl Ester & Fatty Alcohol: MMT Domestic ME Demand vs Capacity Industrial Utilization 80% Capacity 53% 64% 70% 66% 68% 70% 60% 50% Demand 40% 30% 20% 10% 0% (F) 2015 (F) 2016 (F) MMT Demand SEA FA Demand vs Capacity Capacity Industrial Utilization 120% 94% 98% 100% 81% 86% 88% 80% 60% 40% 20% 0% (F) 2015 (F) 2016 (F) USD/T 1,400 1,200 1, Market P2F Domestic ME Price Trend 2013 Avg.1,090 Q1 2013Q2 2013Q3 2013Q4 2013Q (F) 2014 Avg.1,076 ME price CPO price Q2 2014Q3 2014Q (F) (F) (F) Avg. ME P2F 252 Avg. ME P2F 257 USD/T 2,000 1,500 1, Market - P2F Q FA Avg.1,496 Q SEA FA Price Trend Q Q Avg.1,570 CPKO price FA price Q1 Q2 Q3 Q (F) 2014 (F) 2014 (F) 2014 (F) Avg. FA P2F 504 Avg. FA P2F MKT Portfolio Export 10% (23 KTA) Domestics 90%, (208 KTA) TOL has market share 26% (while capacity share is only 15%) Catch up B7 demand and maintain market share by leveraging excellent product and service quality Find new opportunity to export B100 to China and EU 2014 MKT Portfolio Export 66% (73 KTA) Domestics 34%, (37 KTA) Keep market share but use pricing excellence strategy to lift up selling price Reprioritize key customer to archive higher Margin/T per customer Leveraging excellent product and service quality to achieve customers in new market 37

38 Agenda 2013 Achievement From Strategies to Execution 2013 Operating Results Market Outlook Conclusion Appendix PTTPE + LLPE Expansion Projects Green Business Roadmap Debottlenecking/Expansion Projects 2014 Shutdown Plan 38

39 Conclusion Year of Excellence Execution Expect to be the starting point for Uptrend of Petrochemical industry, especially for Olefins & Olefins Derivatives Expect better Plant Utilization Rate, especially for Olefins and Olefins derivatives from increasing gas supply from PTT Focus on Excellence Execution Operational and Marketing Excellence Synergy Projects Debottlenecking/Expansion Projects TOCGC Plant Improvement Project PX Expansion Phenol 2 PTTPE Cracker Debottlenecking LLDPE Expansion To Finalize Site Location and Setup JV Company with Pertamina Strengthen cooperation between PTTGC and Sinochem 39

40 Thank You For further information & enquiries, please contact our Investor Relations Team at 1 Thitipong Jurapornsiridee VP - Corporate Finance & IR Thitipong.j@pttgcgroup.com Puvadol Vasudhara IR Manager Puvadol.v@pttgcgroup.com Panugorn Puengpradit IR Analyst Panugorn.p@pttgcgroup.com Prang Chudasring IR Analyst Prang.c@pttgcgroup.com Chutima Jarikasem IR Coordinator Chutima.j@pttgcgroup.com

41 Agenda 2013 Achievement From Strategies to Execution 2013 Operating Results Market Outlook Conclusion Appendix PTTPE + LLPE Expansion Projects Green Business Roadmap Debottlenecking/Expansion Projects 2014 Shutdown Plan 41

42 PTTPE Cracker Debottlenecking and New LLDPE Plant Additional Ethane from PTT 50% Vol. with Existing Pricing Formula 50% Vol. with Existing pricing Formula $/Ton Additional LPG from PTT Existing Pricing Formula Existing LLDPE 400 KTA Convert to Total 700 KTA Metallocene LLDPE 400 KTA For High Performance Market Stretch film, Agriculture Film, Heavy Duty Bag, etc. PTTPE Cracker Debottlenecking Ethylene from Existing Contract which will be Expired Ethylene New LLDPE 300 KTA For Conventional Market Packaging Film, Rotomolding, etc. Additional Capacity of PTTPE Cracker 12% Increase Additional Capacity LLDPE 300 KTA CAPEX 285 MUSD CAPEX 272 MUSD Expected IRR 17% Target Completion 2016 Expected IRR 16% Target Completion

43 Green Business Roadmap Core Uplift 1-Step Adjacencies Green Business Succinic Acid (SAC) Poly butylene Succinate (PBS) Corn/ Sugars Butanediol (BDO) PLA/PBS Compound Lactic Acid (HLA) Poly Lactic Acid (PLA) PLA Resin Cellulosic Feedstock Acrylic Acid Polyacrylic Acid/Acrylic ester 43

44 Summary of Debottlenecking/Expansion Projects Projects Nameplate/Increase Capacity 1. BV Project 75 KTA of Butadiene 25 KTA of Butene-1 2. TOCGC Plant Improvement Project 3. PX Expansion Project 4. PTTPE Cracker Debottlenecking Increases EOE capacity by 90 KTA from 336 KTA to 426 KTA PX +115 KTA BZ + 35 KTA Ox + 20 KTA 5. Phenol 2 Project 250 KTA of Phenol 155 KTA of Acetone CAPEX (USD mn) EBITDA Uplift (USD mn) Target Completion Q/ Q/ Q/15 during ARO2 TA period 12% Olefins Increase 285 IRR 17% IRR 17% 3Q/15 44

45 2014 Shutdown Plan 1Q/14 2Q/14 3Q/14 4Q/14 Refinery Aromatics ARO 1 (42 days) Olefins I-1 (37 days) I-4/2 (25 days)* I-4/1 (23 days)** HDPE HDPE (26 days) BPE1 (8 days) BPE2 (15 days) BPE1 (17 days) LDPE LDPE (15 days) LDPE (10 days) LLDPE LLDPE (20 days) TOCGC TOCGC (30 days) Phenol Phenol (39 days) *Prelim and subject to change ** Unplanned 45