INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION

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 Current Position of PTTGC Thailand s largest ethane-base cracker with integrated aromatics and refining businesses PTT s Chemical Flagship Incorporated on October 19, 2011 from the amalgamation of PTTAR and PTTCH Profile Registered capital 45,089 million baht Paid-up capital 45,089 million baht Foreign Limit <= 37% Dividend Policy >=30% First trading day on October 21, 2011 Number of employees 3,560 persons Top 5 Shareholders 1. PTT 48.89% 2. NVDR 7.23% 3. HSBC (Singapore) Nominees PTE 2.75% 4. HMC Polymer 1.85% 5. Siam Cement 1.82% as of Mar 6,

4 Overview of PTTAR & PTTCH Fully Integrated Refinery and Aromatics Business Fully Integrated Petrochemical and Chemical Business Incorporated from amalgamation of ATC and RRC in 2007 Incorporated from amalgamation of NPC and TOC in 2005 Profile Registered and paid-up capital of 29,938,149,690 Baht and 29,869,135,380 Baht*, respectively Registered and paid-up capital of 15,191,153,000 Baht and 15,189,940,000 Baht**, respectively Foreign Limit <= 37% Dividend Policy => 30% Foreign Limit <= 24% Dividend Policy >= 30% Production Capacity Aromatics Products = 2,259 KTA Petroleum Products = 228,000 barrels per day Olefins = 2,888 KTA Polymers = 1,590 KTA EO/EG = 495 KTA Oleochemicals = 819 KTA Shareholder Structure 49.1% 50.9% *As of 29 Jul 2011 PTT Others **As of 31 Aug

5 Transaction Rationale Achieve Global Winning Formula Maximize Integration Reduce Volatility of Raw Materials & Product Prices World - Scale Company Create a Strong Platform for Growth 1 PTT s Petrochemical Flagship Thailand s largest Gas and Liquid base Petrochemical producer with 8 million tons production capacity Highly Integrated Operations with Strong Feedstock Position Strong Immediate Synergies and Identified Long Term Synergies Product Coverage Across All Major Petrochemical Building Blocks Combined Synergy streams of 765 KTA Significant synergies of US$80m - US$154 m annually by 2015 with NPV of US$535 m US$1,055 m over 15 yrs at 10% discount rate Combined Aromatics and Olefins feedstock with all major intermediate and derivative products 5 Improved Market Position Become top 5 market cap in Thailand and the top petrochemical company in ASEAN * 6 New Product Opportunities *As of Feb, 2011 Capitalize on PTTAR and PTTCH strength and optimize product offering in high value added products 5

6 Strategic location of each plant in Map Ta Phut Industrial Complex creates proximity to suppliers and customers 6

7 Largest Petrochemical Player Thailand s largest petrochemical player Leading Aromatics, Olefins and Polymers position Strong feedstock position with Natural Gas, Condensate and Crude supply contract and Light Naphtha/C3,C4 from Refinery PTTAR PTTCH PTTGC 19 Oct PTTGC Today Petrochemical (KTA) Aromatics 2,259 2,259 2,259 Olefins 2,888 2,888 2,888 Polymers 1,590 1,590 1,590 EO/EG Green Chemical High Volume Specialty Total (KTA) 2,401 5,909 8,310 8,688 Distillation Capacity (KBD) Petroleum Products (KBD)

8 Flexible Feedstock and Highly Competitive Cost Structure Feedstock Supply Product Marketing Olefins Customers Others Ethane, Propane, LPG Olefins / Polymers C 2 -C 4 100% Polymers (1) 53% (2) Others Condensate Aromatics C 5 -C 9 47% (2) Crude Oil Refinery C 10 -C 25 29% (2) 71% (2) Others Ownership Feedstock Supply Commercial Agreements Product Marketing Commercial Agreements Flexible Feedstock and By-Product Enhancement PTTGC's refinery business is able to process a variety of crude oil at a competitive cost due to high complexity Availability of feedstock along the whole carbon chain enhances the value of PTTGC by offering increased flexibility for better optimization, resulting in further cost advantages Olefins can be produced from naphtha or ethane directly from the Gulf of Thailand Aromatics can be produced from condensate or reformate from the Refinery Value enhancement from by-product exchange among Olefins, Aromatics and Refinery units for upgrading at the other unit highlights operational integration and efficiency, for instance Refinery unit can use condensate residue and hydrogen from Aromatics unit Aromatics unit can use pygas from Olefins unit Olefins unit can use offgas and C 3, C 4 from Refinery and Aromatics units, respectively USD/Ton 1,200 1, MDE Ethane 2012E (4) (5) Global Ethylene Cash Cost by Region 318 NAM Ethane NEA LPG NAM MDE LPG MDE Naphtha Naphtha (5) (5) NEA Naphtha SEA Naphtha 1,006 WEP Naphtha Source: IHS (formerly CMAI) as of July Note: MDE = Middle East, NAM = North America, NEA = Northeast Asia, SEA = Southeast Asia, WEP = Western Europe PTT owns 50%, PTTGC and IRPC each owns 25% in PTTPM. 2. Six month period ended 30 June Revenue includes sale of goods and rendering of services. 4. PTTGC ethylene cash cost is based on Company estimate and ethane cracker only. 2012E PTTGC cash cost takes into account the effect of the renewal of gas price agreement. 5. MDE cash costs are average values of Iran and Saudi Arabia.

9 Fully Integrated Petrochemical and Refinery Operations with Diversified Product Portfolio Feedstock Upstream Intermediates Downstream Proximity to Suppliers and Customers Exchange Stream Products By-Products Ethylene EO MEG HDPE LDPE LLDPE Natural Gas Light Naphtha Cracker Propylene EB/SM PO Polyols Ethanolamine Ethoxylate PS ABS OffGas Mixed C4 Butadiene PP Condensate Reformate, Heavy Naphtha Pygas Aromatics Plants C3,C4 Benzene Toluene PTT Phenol Cumene Cyclohexane SBR Phenol PC BPA Acetone Epoxy Resins MMA PMMA Caprolactam Nylon 6 Crude Crude Palm Oil REFINERY & SHARED FACILITIES Refinery Condensate Residue, Hydrogen Cracker Bottom, Hydrogen Paraxylene Orthoxylene Oleochemicals AROMATICS OLEFINS POLYMERS TDI/HDI PTA PA Fatty Alcohol Methyl Ester (B-100) EO-BASED PERFORMANCE Potential Product Opportunities (1) GREEN CHEMICALS PU PET Fiber/Resin Plasticizer Petroleum Petroleum Products Products - LPG - Reformate - Light Naphtha Naptha Jet Fuel - Jet Fuel Diesel - Diesel Fuel Oil - Fuel Oil HIGH VOLUME SPECIALTIES 9 1. PTTGC does not currently produce these products.

10 Diversified Product Portfolio and End Markets Full range of product offering reduces business volatility and provides future opportunities to expand to High Volume Specialties and other new products Current Downstream Products New and Potential Downstream Product Opportunities HDPE LDPE Packaging, Films, Toys, Furniture, Construction Isocyanates, PU (1) PLA ABS Foams, Coatings, Elastomers Films/Cards, Durables, Beverages, Non- Wovens/Fibers SBR LLDPE PS Packaging, Electronic and Electrical Appliances, Automotives PP PC Automotives, Electronic and Electrical Appliances, Packaging, Construction, Paints Epoxy Resins Biodiesel Biodiesel PMMA Ethoxylate Ethanolamine Health and Personal Care Products, Pharmaceutical Nylon 6 Polyester Fiber PET Resin Automotives, Textiles, Agriculture Textiles, Packaging, Furniture, New Investments Potential Product Opportunities (2) PU is currently a potential product opportunity. 2. PTTGC does not currently produce these products.

11 Organization Chart and Business Units Mr. Anon Sirisaengtaksin Chief Executive Officer Mr. Patiparn Sukorndhaman Executive Vice President, Finance & Accounting Mr. Bowon Vongsinudom President Finance and Accounting Growth, Sustainability and Innovation Corporate Strategy Organizational Effectiveness Corporate Affairs External Affairs Marketing, Commercial and Supply Engineering and Maintenance Refinery Aromatics Olefins Polymers EO-Based Performance Green Chemicals High Volume Specialties Capacity (1) : 280 kbd (2) 2,259 ktpa 2,888 ktpa 1,590 ktpa 470 ktpa 933 ktpa 292 ktpa Key Products (1) : LPG Light Naphtha Reformate Jet A1 Diesel Fuel Oil Benzene Toluene Paraxylene (PX) Orthoxylene Mixed Xylenes Cyclohexane Ethylene Propylene Mixed C4 Pyrolysis Gasoline (PYGAS) HDPE LLDPE LDPE PS Ethylene Oxide (EO) Ethylene Glycol (EG) Ethanolamines Ethoxylate Oleochemicals Bioplastics Biochemicals Methyl Ester (ME) Plastic Additives Phenol Bisphenol A (BPA) Toluene Dilsocyanate (TDI) Hexamethylene Diisocynate (HDI) Production of certain petrochemical products are from joint ventures. 2. Crude Distillation Unit = 145 kbd, Condensate Splitter = 135 kbd.

12 Vision/Mission To be a Leading Chemical Company for Better Living Leading Top Quartile Performance in Asia Pacific Shareholders We deliver the best business performance through trustworthiness to create fair and sustainable value for shareholders Society We engage and integrate social and environment to our business with responsibility and care for sustainable development. Chemical Company Better Living Petrochemical and Chemical Producer Focus to End-User Customer for Better Living Business Partner We provide superior solutions from innovative products and services to be the best choice for business partners. Employee We create a learning organization and a happy workplace to cultivate proficient workforces with profound engagement and commitment to professional excellence. 12

13 Strategic Direction To be a Leading Chemical Company in Asia Pacific 13

14 Continues to Strive for Strong Profitable Growth Based on constant Dubai crude year 2012 at USD 109 per bbl Sales in THB Bn ~ Green 563 ~ HVS New Global Hub Green HVS Debottleneck Synergy Project Excellence Operational Excellence, Marketing Excellence, Capital Expenditure Excellence Expected EBITDA Benefit Uplift 15-30% Actual 2011 Target Phase 1: Foundation for Growth Phase 2: The Growth Mode Target 2022 We aim to grow ~5 percent p.a. in the next ten years 14

15 Our Strengths for Future Growth 1 Collaboration and Support among PTT Group to Enhance Synergy Value 5 2 Experienced Management with Strong Track Record Highly Competitive Cost Structure with Stable Margin 4 Strong Market Position Across Principal Products 3 Fully Integrated Operations with Flexible Feedstock, Enhanced Optimization and Diversified Product Portfolio 15

16 Thank You For further information & enquiries, please contact our Investor Relations Team at 1. Thitipong Jurapornsiridee VP - Corporate Finance & IR Thitipong.j@pttgcgroup.com Panugorn Puengpradit IR Analyst Panugorn.p@pttgcgroup.com Prang Chudasring IR Analyst Prang.c@pttgcgroup.com Sinida Petchveerakul IR Analyst Sinida.p@pttgcgroup.com