Thailand Focus 2015 December 3, 2015

Transcription

1 Thailand Focus 2015 December 3, 2015

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.

3 Agenda PTTGC S BUSINESS OVERVIEW STRATEGIC EXECUTION FINANCIAL PERFORMANCE 3

4 Overview of PTTGC Overview of PTTGC 4 PTTGC at a Glance PTT Group s Chemical Flagship Thailand s largest ethane-base cracker with integrated aromatics and refining business Highly competitive cost structure with pricing arrangement for gas feedstock based upon equitable return on investment for both PTT and PTTGC Fully integrated petrochemical and refinery operations with diversified product portfolio covering full hydrocarbon chain Committed to operational excellence targeting best in class/ first quartile business efficiency Ranked in Dow Jones Sustainability Indices Chemicals Sector for 2 nd Consecutive Year Incorporated on October 19, 2011 from the amalgamation of PTTAR and PTTCH 2014 Sales : $17.6 bn; Adj. EBITDA: $1.6 bn Asset size: $13.2 bn (as of Dec 31, 14) Number of employees: 3,742 persons Strong footprint in fast growing regions with 6 operating countries Shareholding Structure Historical Dividend Payment 4,509 mil shares Foreign Limit <=37% Dividend Policy >=30% * From pro-forma financial statements

5 Thailand s Largest Petrochemical Player Our Business Structure 7 Business Units (Thousand Barrels per Day) Petroleum Distillation Capacity (1) 8.75 (Million Tons per Annum) Petrochemical Capacity Refinery Capacity* & Key Products Aromatics Olefins Polymers EO-Based Performance Green Chemicals High Volume Specialties 280 KBD (1) 2,259 KTA 2,988 KTA 1,590 KTA 470 KTA 829 KTA 610 KTA LPG Light Naphtha Reformate Jet A1 Diesel Fuel Oil Benzene Toluene Paraxylene Orthoxylene Mixed Xylenes Cyclohexane Ethylene Propylene Mixed C4 Pyrolysis Gasoline Butadiene Butene-1 HDPE LLDPE LDPE Polystyrene Ethylene Oxide Ethylene Glycol Ethanolamines Ethoxylate Methyl Ester Fatty Acid Fatty Alcohol Grycerin Specialty Oleochemicals Bioplastics Phenol Bisphenol A Toluene Dilsocyanate Hexamethylene Diisocynate and Derivatives (1) (1) Refinery Refinery = = KBD, KBD, Condensate Condensate Splitter Splitter Units Units = = KBD KBD * Calculate proportionate by percent share

6 1 Key Competitive Strengths Strategic Relationship with PTT with Secured Feedstock Position and Offtake Agreements Experienced Management with Strong Track Record Highly Competitive Cost Structure 4 Strategic location creates proximity to suppliers and customers 3 Fully Integrated Operations with Flexible Feedstock, Enhanced Optimization and Diversified Product Portfolio

7 Strategic Relationship with PTT with Flexible Feedstock and Secured Product Offtake 1 7 Feedstock Supply Product Marketing Customers 79% Polymers (1) Ethane, Propane, LPG Condensate Domestic 70% Import 30% Olefins & Derivatives Aromatics 66% C 2 -C 4 C 5 -C 9 Captive Use 21% 34% 54% 46% EO Based Others Others Others Crude Oil Refinery C 10 -C 25 30% Others 70% Feedstock Supply Commercial Agreements Flexible Feedstock and By-Product Enhancement PTTGC's refinery is one of the most complex refineries in Thailand, with Nelson Index of and refining capacity accounting for 13% of country s total capacity Value enhancement from by-product exchange among Olefins, Aromatics and Refinery units highlights operational integration and efficiency: -CR from Aromatics units sent to Refinery to produce middle distillates -Pygas from Olefins unit sent to Aromatics for BTX -Offgas from Refinery sent to Cracker for Olefins products Product Marketing Commercial Agreements (1) PTT owns 50%, PTTGC and IRPC each owns 25% in PTTPM Domestic / Export Volume Portion Export 30% Domestic 70% Export 40% Export 60% Domestic 60% Domestic 40% Refinery Aromatics Polymers

8 Highly Competitive Cost Structure & Performance driven by Olefins and Derivatives 2 8 Typical Revenue Breakdown 5% 1% 5% 21% 48% 2014 Global Ethylene Cash Cost by Region USD/Ton 20% s Source: IHS (formerly CMAI) Note: MDE = Middle East, NAM = North America, NEA = Northeast Asia, SEA = Southeast Asia, WEP = Western Europe. MDE cash costs are average values of Iran and Saudi Arabia. Typical Adj. EBITDA Breakdown % Adj. EBITDA Margin 3% 5% 3% 16% % 16% s Refinery Aromatics Olefins Green HVS PTTGC R 2014R

9 Fully Integrated Petrochemical and Refinery Operations with Diversified Product Portfolio 3 9 Feedstock Upstream Intermediates Downstream Proximity to Suppliers and Customers HDPE Natural Gas Exchange Stream Products By-Products Light Naphtha Cracker Ethylene Propylene EO EB/SM / PO Polyols MEG LDPE LLDPE Ethanolamine Ethoxylate PS ABS OffGas Mixed C 4 Butadiene PP Condensate Crude Crude Palm Oil Agricultural Products REFINERY & SHARED FACILITIES Reformate, Heavy Naphtha Refinery Pygas Aromatics Plants Condensate Residue, Hydrogen C 3,C 4 Cracker Bottom, Hydrogen Benzene Toluene Paraxylene Orthoxylene Oleochemicals PLA Plant Succinic Acid Plant AROMATICS OLEFINS POLYMERS PTT Phenol Cumene Cyclohexane Phenol Adipic Acid HDMA TDI / HDI PTA PA Fatty Alcohol Methyl Ester (B ) Phenol Acetone HDI TDI EO-BASED PERFORMANCE BPA MMA SBR Caprolactam Nylon Caprolactam Nylon 6 6 System House GREEN CHEMICALS PC Epoxy Epoxy Resins PMMA Nylon 6,6 PU PU Polyester Fiber/ PET PET Fiber Resin / Resin Plasticizer Petroleum Products - LPG - Reformate - Light Naptha - Jet Fuel - Diesel - Fuel Oil PLA Succinic Acid 1 st Screen for Further Feasibility Study PTTGC does not currently produce these products Not qualify for 1 st Screen HIGH VOLUME SPECIALTIES

10 Strategic location of each plant in Map Ta Phut Industrial Complex creates proximity to suppliers and customers 4 10

11 Experienced Management with Strong Track Record and Organization Structure to support Growth 5 Audit Committee Risk Management Committee Board of Directors President and CEO Mr. Prasert Bunsumpun Chairman Nomination and Remuneration Committee CG Committee Mr.Athavudhi Hirunburana Mr. Patiparn Sukorndhaman VP Internal Audit Mr. Supattanapong Punmeechaow Effective Jan 1, 2016 COU Upstream Petrochemical Business COD Downstream Petrochemical Business SVP GPC Refinery and Shared Facilities SVP GPC Aromatics EVP GPC Olefins SVP CAPEX Excellence SVP Technical and Operations SVP Quality, Safety, Occupational Health and Environment SVP Polymers Business Unit EVP EO Based Performanc e Business Unit SVP Green Chemicals Business Unit SVP - High Volume Specialties Business Unit SVP - Phenol Business Unit SVP Marketing, Commercial and Supply EVP Organizational Effectiveness EVP Finance and Accounting EVP External Affairs EVP Project Executive Director Mr.Saroj Putthammawong EVP International Business Operations EVP Corporate Strategy Miss Duangkamol Settanung SVP Corporate Affairs SVP Science and Innovation 11

12 Agenda PTTGC S BUSINESS OVERVIEW STRATEGIC EXECUTION FINANCIAL PERFORMANCE 12

13 Strategic Direction CORE UPLIFT PROJECTS Excellence Projects Debottlenecki ng Map Ta Phut Retrofit 1-STEP ADJACENCIES NEW GEOGRAPHIES NEW PRODUCTS ASEAN: Pertamina System House CHINA: Sinochem Compounding US: Shale Gas PC, PU, Nylon 6-6 GREEN Oleochemical, PLA Succinic Acid PLA/PBS Compound - Bio Fuel - Bio Chemical - Bio Plastic

14 Strategic Plans : Major Projects 2015 TOCGC Improvement Construction Completed Under Performance test run Aromatics II Debott. Progress : 99.5% Phenol II Progress: 99% HDI Derivative Thailand HDI Monomer France mlldpe PO/Polyol MTP Retrofit US Petrochemical Complex 3Q/15 4Q/ Offgas TOCGC ARO2 Phenol2 HDI Thailand HDI France MLLDPE PO/Polyol CAPEX 180 MUSD 94.2 MUSD MUSD 345 MUSD 40 MEUR 17 MEUR MUSD 1,000 MUSD Additional Ethylene Additional PetChem* (per year) EOE 90KTA PX 115 KTA BZ 35 KTA OX 20 KTA PH 250 KTA AC 155 KTA HDI Derivative 12 KTA HDI Monomer 70 KTA MLLDPE 400 KTA Hexene-1 34 KTA EBITDA 22 MUSD 26 MUSD 24 MUSD 63 MUSD 8 MEUR 4 MEUR 59 MUSD Uplift/Year** * 100% stake of additional capacity ** Estimate EBITDA uplift with 100% stake at mid cycle price PO 200 KTA Polyol 150 KTA US Petrochem Ethylene 1 MTA HDPE 700 KTA MEG 500 KTA EO 100 KTA 14

15 Excellence Project Update Performance Excellence Target Crude $109 (M$) 9M/15 Actual (M$) FY2015 Estimate (M$) Synergy Excellence Marketing Excellence Operational Excellence Total Synergy Excellence : EBITDA Uplift lower than target due to o Low crude price vs. target which based on Dubai at 109 USD/bbl o Off gas project delayed (in preparation for hydrocarbon feed in after Aromatics 2 return from shutdown in 4Q/15) o Additional off gas volume from refinery after refinery turnaround in 2Q/2016 Off gas project at Olefins I-1 plant 15

16 Map Ta Phut Retrofit : The Possibilities Objective : Utilize light naphtha being sold to external customers Possibilities under study Upstream Maximize Product Value Downstream Product Value Creation Modify Olefins Cracker for Flexible Feedstock To Utilize naphtha being sold to spot market for captive use Modify olefins plant (i.e. I-1) to be flexible in feedstock and resilience to feedstock price PE / Special PE EO / EG PP Modify olefins plant to run as a pure naphtha cracker Create Olefins and by products capacity addition Acrylic Acid SAP Capacity Expansion Study SM PS / Special PS Compound To Utilize Gas Feedstock from Modified Olefins Plant MMA MS Debottleneck PTTPE Plant to use excess gas feedstock reshuffled from modified olefins plant AN Butadiene ABS / SAN SSBR/TPE/PBR Timeline MTP Retrofit Configuration is to be finalized by end of 2015 Legends Existing Product Potential Product PTTGROUP Product 16

17 Polyurethane Chain Updates Feedstock EO Propylene Cumene 1 PU Raw Materials Isocyanate TDI/HDI MDI 160 KTA 2 PO PU Formulation Polyols System House Isocyanate Update 1 2 COD: 2016 Cap.: 12 KTA CAPEX: 40 MEUR COD: 2016 Cap.: 70 KTA CAPEX: 17 MEUR TDI Development : Engaging 2 external consultants to jointly develop a specific Basic Engineering Design Package (BEDP) for a future unit development in Asia. Proceeding with technology and process improvement to optimize productivity and cost efficiency. HDI Derivatives Thailand: Under construction with project progress of 95% Convert TDI to HDI, France: Detailed engineering & construction of new parts, project progress : 20% PO/Polyols Project Update License : Signed engineering service agreement for both PO and Polyols Finance: Exploring project financing, engaging potential lenders Engineering : Issued TOR for FEED contractor, expect to award contractor by December 2015 Marketing: Shortlisted PO customers and conducting market survey for Polyols potential buyers in 5 countries Partners: PO Majority Shareholder Capacity 200 KTA PO Licensor Polyols/ System House Majority Shareholder Capacity 130 KTA Polyols Licensor COD: 2019 Cap.: 12 KTA HDI Derivatives in Freeport, USA : Under feasibility study Total CAPEX of approx. USD 1 Bn Q/16 Set up JV company 2Q/17 Construction 2019 COD 2Q/19 17

18 US Petrochemical Complex Petrochemical Complex World Scale Ethane Cracker Utilize ethane from shale gas as feedstock Capacity : 1 MTA Ethylene Derivatives HDPE : 700 KTA MEG : 500 KTA EO : 100 KTA Location : Dilles Bottom, Ohio Capex: Approx. US$ 5.7 Billion Key Criteria for FID Investment cost justify investment return Enough ethane capacity with capped price Partner can distribute products in N. America Timeline BOD approved FEED Study Mar, 2015 CHECK POINTS FID 4Q/16 COD 2021 FEED Selection Dual-FEED Contractor Selection Construction 18

19 Project Updates US Petrochemical Complex Updates 1.FEED 2. Feedstock 3. Marketing and Logistic 4. Site, permitting & State support 5. Partner 6. Finance Selected 2 FEED contractors : Fluor-Technip-SK (FTSK) and Bechtel-JGC-Samsung (BJS) Process design package by Technip, INEOs and SD to be completed by end of the year Developing ethane feedstock supply agreement In discussion with utilities providers and pipeline network companies To finalize sell purchase agreement at least 50% of required volume by year end On going discussion with potential product offtakers, capacity reservation offtakers, and logistic providers Market survey by customer conducted around 34% of target customers, expect to complete within 1Q/16 Finalized land option agreements to use the land during FEED study period Federal, State, and local put project as high priority Land owners are doing site works and will deliver clean land Community outreach program start on November 2015 Discussing with potential 3 rd partner for JV possibility Shortlist additional potential partners who are local marketing companies, offtakers with and without capacity reservation, and local O&M FEED contractors are working on vendor shortlist for ECA financing Developing information memorandum for potential lenders 19

20 Indonesia Project Petrochemical Complex Project Update Petrochemical Complex in Indonesia to Expand production facilities Capture domestic demand Replace import volume Naphtha based cracker 1.5 MTA HDPE LDPE EO/EG PP Pygas. With current demand, Indonesia requires > 1 world scale Petrochemical Complex BD Pertamina has recently prioritized its refinery project investment plan o Balikpapan and Cilacap refinery upgrade projects will be proceeded as the first priority o Other refinery upgrades, including Balongan, are planned for a later phase Pertamina is evaluating options for the new location for the planned integrated refinery and petrochemical complex PTTGC is well positioned as a strong candidate for project partner due to o Strong relationship with Pertamina o Knowledge of the industry and Indonesia market Indonesia market (2015, KT) Production Domestic Demand HDPE LDPE LLDPE MEG PP BD In the meantime, PTTGC and Pertamina are continuing to collaborate closely in the sales and marketing activities under ITT, a joint venture between PTTGC and Pertamin IndoThai Trading: PTTGC supplies PE which accounts for 70%. Pertamina supplies PP, 30% of ITT s total sales volume. 20

21 Green: Bio-Hub Concept Create Sustainability in a Long Term Integration Interdependence feedstock which creates feedstock security Saving on logistic cost from proximity to feedstock location Saving on energy cost from turning waste into biofuel Saving from infrastructure sharing 21

22 Agenda PTTGC S BUSINESS OVERVIEW STRATEGIC EXECUTION FINANCIAL PERFORMANCE 22

23 2014 Overview of Business Performance (Unit: MB) R 2014R Sales Revenue 562, , ,908 EBITDA 57,168 57,726 34,225 EBITDA Margin (%) 10% 11% 6% Adjusted EBITDA* 56,993 54,685 52,374 Adjusted EBITDA Margin (%) 10% 10% 10% Net Profit 34,001 33,260 15,372 EPS (Baht/Share) Note: * Adjusted EBITDA refers to EBITDA excluding impact of inventory value (Inventory gain/(loss) and NRV) and provision for business restructuring 2014R Revenue and Adjusted EBITDA Structure % Adjusted EBITDA Margin 25% Sales Revenue 3% 6% 550,908 MB 48% 52,374 MB 19% Adjusted EBITDA 67% 3% 1% 3% 20% 6% R 2014R Business Unit : Refinery Aromatics Olefins and Derivative Green HVS Average

24 3Q/15 Overview of Business Performance (Unit: MB) 3Q/14R 2Q/15 3Q/15 YoY % + /(-) QoQ % + /(-) Sales Revenue 141, ,169 93,620-34% -16% EBITDA 12,728 16,055 7,824-39% -51% EBITDA Margin (%) 9% 14% 8% -1% -6% Net Profit 7,658 8,974 1,207-84% -87% EPS (Baht/Share) % -87% Adjusted EBITDA* 15,582 13,784 10,511-33% -24% Adjusted EBITDA Margin (%) 11% 12% 11% 0% -1% Note: * Adjusted EBITDA refers to EBITDA excluding impact of inventory value (Inventory gain/(loss) and NRV) 3Q/15 Revenue and Adjusted EBITDA Structure % Adjusted EBITDA Margin Sales Revenue Adjusted EBITDA 3Q/14R 2Q/15 3Q/15 33% 3% 7% 4% 2% 2% 45% 93,620 MB 10,511 MB 12% 70% 18% 4% Business Unit : Refinery Aromatics Olefins and Derivative Green HVS Average

25 Olefins Adjusted EBITDA Margin maintain at normal level despite lower HDPE price Adj. EBITDA margin declined o Lowest HDPE price o Less benefit from naphtha cracker due to I-4/1 shutdown Adj. EBITDA margin rebounded o HDPE price bounced o Benefit from high naphtha crack spread Adj. EBITDA margin maintained o Benefit from high naphtha crack spread o HDPE price dropped o I-4/2 shutdown Adj. EBITDA margin declined o Lower HDPE price 1,800 1,600 1,400 1,200 24% 25% 28% 25% 19% 28% 24% 30% 25% 20% 1, ,554 1,569 1,604 1,448 1,188 1,375 1,234 15% 10% % - 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 0% HDPE Price ($/Ton) HDPE-Naphtha ($/Ton) Adj. EBITDA Margin (%) 25

26 Gas Cracker is still more competitive over Naphtha at Crude 43 $/BBL Gas Cracker Unit: USD/ton ethylene 1,190 Main Price Assumption Crude ($/bbl) 43 Naphtha Price ($/Ton) 433 Ethylene ($/Ton) 1000 Propylene ($/Ton) 515 C3/C4 ($/Ton) HDPE Price By Product Feedstock Cost Variable Cost Fixed Cost EBITDA Margin Naphtha Cracker Unit: USD/ton ethylene 1, HDPE Price By Product Feedstock Cost Variable Cost Fixed Cost EBITDA Margin 26

27 Strong Financial Position Statements of Financial Position THB 381 Bn THB 394 Bn Loan Type Debenture, 49% ST Bank Loan, 0% Cash +ST Investment CA PPE Non CA As of Dec 31, 2014 As of Sep 30, 2015 Liab. IBD Share Holder s Equity THB 116 Bn LT Bank Loan, 51% Interest Rate Currencies 54% Fixed 62% THB 46% Float 38% USD&Others Cost of long term debts ~ 4.24% (Include W/H Tax) Average loan life after refinancing Years Repayment Profile THB Bn PTTGC PPCL Others * After Refinance Net IBD/EBITDA Treasury policy Net IBD to EBITDA ratio of 2.4x Net IBD to Equity ratio of 0.7x Key Financial Ratios NET IBD/Equity Dec Mar Jun Sep 15 ROE 6.86% 6.40% 5.05% 4.92% % ROA 6.10% 4.80% 4.21% 31 Dec Mar Jun Sep 15 27

28 Prudent CAPEX Plan to Support Growth Approved CAPEX Plan * Uncommitted 5 Years Investment CAPEX 738 Unit: USD mn Green 1-step Core uplift Phenol Annual Maintenance Total Total Growth Project Green 5% $ 4.5 Bn 1-Step Adjacencies 64% Core Uplift 31% $ 2.5 Bn Cash Flow From Operation $ 2 Bn Debt Financing 2013A 2014A *FX = 30 THB/USD $1 Bn secured from USD Bond issued in Sep 12 28

29 Agenda PTTGC S BUSINESS OVERVIEW STRATEGIC EXECUTION FINANCIAL PERFORMANCE APPENDIX 3Q/15 FINANCIAL PERFORMANCE 29

30 Business Environment and Operations Recap Average and Ending Dubai Crude Price: USD/BBL Average Price Closing Price M/149M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 Average and Closing FX : THB/USD o Dubai dipped from average at 61.3 USD/BBL in 2Q/15 to 49.7 USD/BBL in 3Q/15. As a result, PTTGC reported Stock Loss & NRV totaling to 2,687 M.THB in 3Q/15 o FX Loss amounting to 2,140 M.THB, resulting from depreciation in THB against USD from THB/USD at the end of 2Q/15 to THB/USD at the end of 3Q/15 o Modest Refinery GRM, declined Aromatics P2F, yet, strong Olefins margin o Diesel-Dubai 10.8 USD/BBL -25% YoY -21% QoQ o ULG95-Dubai 19.3 USD/BBL +47% YoY -2% QoQ o FO Dubai -8.1 USD/BBL +4% YoY -128% QoQ o PX-Cond 397 USD/Ton -17% YoY +1% QoQ o BZ-Cond 235 USD/Ton -45% YoY -14% QoQ o HDPE 1,234 USD/Ton -23% YoY -10% QoQ o MEG 1,025 USD/Ton -10% YoY -0% QoQ o Overall utilization rate of major businesses Average FX Closing FX M/149M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 3Q/14 2Q/15 3Q/15 30 YoY + /(-) QoQ + /(-) Refinery CDU Utilization (%) 102% 100% 101% -1% 1% Aromatics BTX Utilization (%) 82% 85% 57% -25% -28% Olefins Utilization (%) 94% 89% 93% -1% 4% Polymers Utilization (%) 104% 92% 113% 9% 21% EO Based MEG Utilization (%) 112% 106% 51% -61% -55% Phenol Phenol Utilization (%) 132% 121% 132% 0% 11% BPA Utilization (%) 104% 85% 107% 3% 22% 30

31 Refinery Performance Production optimization supported decent GRM ULG 95 - DB JET - DB Diesel - DB Petroleum Products - Dubai Spread (USD/BBL) M/149M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/ M/149M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/ M/149M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 +47% YoY -2% QoQ -25% YoY -19% QoQ -25% YoY -21% QoQ Crude Total Intake (KBD) CDU U-Rate 102% 101% 101% 103% 102% 101% 102% 100% 101% Condenstate Residue & Others M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 Market GRM Gross Refinery Margin (USD/BBL) Hedging Gain/(Loss) Stock Gain/(Loss) Net NRV Accounting GRM -6% YoY -7% QoQ FO - DB 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 (9.2) (4.5) (8.5) (10.7) (8.4) Sales Volume (KBD) (5.6) (1.9) (3.6) (8.1) Others Fuel Oil Diesel Jet Naphtha+Ref % 16% 16% 16% 10% 16% 16% 15% 17% 13% 12% 13% 13% 12% 15% 17% 10% 9% 52% 49% 52% 51% 54% 45% 46% 51% 50% 13% 13% 7% 9% 14% 13% 14% 14% 12% 14% 15% 5% 8% 9% 9% 9% 10% 9% 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 +4% YoY -128% QoQ +1% YoY -7% QoQ (0.97) (0.82) (0.12) (0.69) (2.92) (7.69) (14.68) (1.50) (3.22) (0.31) (0.04) (0.03) 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 Market GRM GRM on CDU GRM on CRS

32 Aromatics Performance 3Q/15 margin impacted by Aromatics 2 plant shutdown Aromatics Products Prices and Spread (USD/Ton) BTX U-Rate and Sales Volume (KTons) Prices PX FECP - Cond BZ Spot - Cond Naphtha - Cond Condensate Erawan PX FECP BZ Spot Korea 1,303 1,303 1,350 1,256 1, ,035 1,297 1,293 1, M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15-17% YoY +1% QoQ M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/ M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 BTX U-Rate BZ Group PX Group Naphtha Group Other By- Products 88% 77% 91% 89% 82% 63% 88% 85% 57% 2,488 2, % 23% 24% 23% 22% 21% 25% 21% 25% 37% 39% 38% 37% 36% 33% 45% 36% 36% 28% 29% 25% 28% 33% 35% 30% 30% 28% 11% 8% 12% 12% 9% 11% 13% 2% 10% 9M/149M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15-45% YoY -14% QoQ Products to Feed Margin (USD/Ton BTX) -18% YoY +11% QoQ Market P2F Stock Gain/(Loss) Net NRV Hedging Gain/(Loss) Accounting P2F (10.18) (2.65) (7.90) (68.54)(398.22)(27.63) (0.02) (235) % YoY -36% QoQ (48.94) (0.37) 32 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 32

33 Prices MEG ACP 0.65Ethylene HDPE - Naphtha 1,615 1,580 1,576 1,139 Olefins Derivatives Prices and Spread (USD/Ton) 933 HDPE (FILM) SEA LLDPE CFR SEA LDPE CFR SE Asia MEG ACP Naphtha MOPJ 1,279 1,260 1, ,639 1,605 1,601 1,440 1,401 1,560 1,578 1,601 1,192 1,375 1,244 1,554 1,569 1,604 1,431 1,181 1,224 1,448 1,375 1,182 1,093 1,143 1,188 1,234 1,035 1,027 1, M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/ Olefins and Derivatives Performance Margin stayed strong at 24% HDPE Price -23% YoY -10% QoQ 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 HDPE (FILM) SEA 1,576 1,266 1,554 1,569 1,604 1,448 1,188 1,375 1,234 LLDPE CFR SEA 1,580 1,260 1,560 1,578 1,601 1,431 1,181 1,375 1,224 LDPE CFR SE Asia 1,615 1,279 1,639 1,605 1,601 1,440 1,192 1,401 1,244 MEG ACP 1, ,182 1,093 1,143 1, ,027 1,025 Naphtha MOPJ M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/ % YoY -5% QoQ +116% YoY +214% QoQ U-Rate (%) 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 Olefins 87% 93% 77% 91% 94% 101% 96% 89% 93% HDPE 105% 105% 93% 107% 114% 115% 109% 97% 109% LLDPE 98% 95% 99% 112% 84% 105% 110% 61% 113% LDPE 104% 114% 115% 93% 104% 106% 99% 119% 124% Total PE 103% 104% 99% 106% 104% 111% 107% 92% 113% MEG 92% 88% 65% 99% 112% 104% 108% 106% 51% Sales Volume (KTons) 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 Olefins HDPE LLDPE LDPE Total PE 1,157 1, MEG GAS : NAPHTHA Intake % Ethane Other Gas Naphtha Adjusted EBITDA Margin 26% 24% 24% 25% 28% 25% 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 331Q/15 2Q/15 3Q/15 19% 28% KTons 2,695 2, , % 8% 13% 11% 4% 6% 7% 8% 8% 34% 36% 26% 35% 40% 36% 37% 38% 35% 56% 56% 60% 54% 56% 59% 56% 54% 57% 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 24% 33

34 Phenol and BPA Performance Lower Margin from Soften Product Spread Phenol/ BPA Prices and Spread (USD/Ton) U-Rate and Sales Volume (KTons) Prices 1,728 1,490 1,297 1, Benzene Phenol BPA 1,894 1,638 1,653 1,592 1,595 1,424 1,456 1,235 1,364 1,334 1,297 1,293 1, , U-Rate 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 Phenol 114% 128% 78% 131% 132% 132% 131% 121% 132% BPA 94% 102% 70% 107% 104% 116% 114% 85% 107% Sales Volume (KTons) Phenol -2% YoY +10% QoQ % 45% 40% 42% 48% 40% 41% 52% 43% BPA-Phenol Phenol-BZ 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 Phenol (CMP) 1, ,424 1,456 1,592 1, BPA (CMP) 1,728 1,244 1,638 1,653 1,894 1,595 1,364 1,334 1,036 Benzene 1, ,297 1,293 1, M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 Phenol Mkt P2F % YoY +26% QoQ % YoY -57% QoQ 154 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 BPA Mkt P2F BPA 10% 11% 56% 55% 60% 58% 52% 60% 59% Adjusted EBITDA Margin 48% 57% 9M/149M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 4% 7% 16% 13% 19% 7% 6% 9M/14 9M/15 1Q/14 2Q/14 3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 34

35 Phenol and BPA Phenol and BPA Market P2F Margin Soon getting on up trend after hitting the bottom $/Ton 1,100 Phenol and BPA Market P2F Margin 1, Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 P2FM-PH P2FM-BPA Note: Phenol Market P2F: BPA Market P2F: Phenol Benzene Propylene Acetone BPA Phenol Acetone 35

36 3Q/15 Income Statements Consolidated 3Q/2014** 2Q/2015*** 3Q/2015 YoY QoQ MB % MB % MB % MB % MB % 1 Sales Revenue 141, , , (47,461) -34% (17,549) -16% 2 Feedstock Cost (113,516) (80) (86,168) (78) (71,236) (76) (42,280) -37% (14,932) -17% 3 Product to Feed Margin 27, , , (5,181) -19% (2,617) -10% 4 Variable Cost (6,726) (5) (6,130) (6) (6,228) (7) (498) -7% 98 2% 5 Fixed Cost (3,896) (3) (4,003) (4) (3,974) (4) 78 2% (29) -1% 6 Stock Gain/(Loss) & NRV (2,854) (2) 2,271 2 (2,687) (3) 167 6% (4,958) -218% 7 Gain/(Loss) Commodity Hedging (72) (0) 52 0 (376) -88% % 8 Other Income , (21) -2% (496) -36% 9 SG&A (2,687) (2) (2,384) (2) (2,600) (3) (87) -3% 216 9% 10 EBITDA 12, , ,824 8 (4,904) -39% (8,232) -51% 11 Depreciation & Amortization (3,941) (3) (4,062) (4) (4,132) (4) 191 5% 70 2% 12 EBIT 8, , ,692 4 (5,095) -58% (8,302) -69% 13 Finance Cost (1,071) (1) (993) (1) (960) (1) (111) -10% (33) -3% 14 FX Gain/(Loss) (1,235) (1) (2,140) (2) (2,520) -663% (905) -73% 15 Shares of profit/(loss) from investments % % 16 Income Tax Expense (540) (0) (932) (1) (756) -140% (1,148) -123% 17 Net Profit 7, , ,293 1 (6,400) -83% (7,703) -86% Profit/(loss) attributable to: *** 18 Owners of the Company 7, , ,207 1 (6,451) -84% (7,767) -87% 19 Non-controlling interests % % 20 Adjusted EBITDA* 15, , , (5,071) -33% (3,274) -24% Note: * Adjusted EBITDA refers to EBITDA excluding impact of inventory value (excludes Inventory gain/(loss) and NRV) ** Restated 3Q/2014 Income Statements from the implementation of new accounting standards (Pack 5) *** Restated 2Q/2015 Income Statements to reflect share purchase of PTTPL on the basis of business combination under common control 36 36

37 Shutdown Schedule Refinery Aromatics Olefins Butadiene HDPE LDPE LLDPE TOCGC Phenol I II PTTPE I-1 I-4/1 I-4/2 I-1 BPE I BPE II Phenol BPA 4Q/15 1Q/16 2Q/16 3Q/16 4Q/16 4 Ma y - 5 Jul y (63) 28 Jul-9 Nov (105) 22 Feb-31 Ma r (39) Sep (16) Sep (22) 1-15 Jun (15) 19 Sep-7 Oct (19) Ma r(20) Sep (15) 22 Feb-11 Ma r (19) Sep (22) 9-24 Nov (16) 3-31 Ma r (29) 20 Ma y-22 Jun (34) 37

38 Agenda PTTGC S BUSINESS OVERVIEW STRATEGIC EXECUTION FINANCIAL PERFORMANCE APPENDIX MARKET OUTLOOK 38

39 CRUDE OIL : SUPPLY GLUT REMAINS BUT BETTER BALANCE AS NON-OPEC PRODUCTION SLOWDOWN Q3-Q4 : ECONOMIC-DRIVEN MARKET SENTIMENT Unit : $/bbl Q China s economic downturn Iran s nuclear deal Q Winter crude demand & Brazil oil worker union strike OPEC unlikely to cut Fed rate rise expectations Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec OUTLOOK : SLOWDOWN OF NON-OPEC Slowdown in Non-OPEC supply growth, especially in US production EIA : US crude output at 8.8 (-0.5)MBD in US Crude Oil Production (MBD) PRICE TREND & FORECAST FACTORS TO WATCH Dubai Price (USD/BBL) Q1'15 Q2'15 Q3'15 Q4'15E 2015E 2016F Ref : EIA, IEA, JBC, PRISM 51.9 USD/bbl USD/bbl - + OPEC Policy Iran ramp up possibility in Q1 Lifting the US ban on crude oil exports China s economic slowdown Geopolitics & Middle East tension may cause supply disruption Rising demand in 2H 16 39

40 CRUDE OIL : SUPPLY GLUT REMAINS BUT BETTER BALANCE AS NON-OPEC PRODUCTION SLOWDOWN OUTLOOK : DECLINING IN SURPLUS Global Oil Demand Growth FY2015 : 1.8 MBD FY2016 : 1.2 MBD OPEC Non-OPEC Demand Unit : MBD Non 95.7 OPEC Demand OPEC PRICE TREND & FORECAST 2016 OUTLOOK : SLOWDOWN OF NON-OPEC Slowdown in Non-OPEC supply growth, especially in US production EIA : US crude output at 8.8 (-0.5)MBD in US Crude Oil Production (MBD) FACTORS TO WATCH Dubai Price (USD/BBL) Q1'15 Q2'15 Q3'15 Q4'15E 2015E 2016F Ref : EIA, IEA, JBC, PRISM 51.9 USD/bbl USD/bbl - + OPEC Policy Iran ramp up possibility in Q1 Lifting the US ban on crude oil exports China s economic slowdown Geopolitics & Middle East tension may cause supply disruption Rising demand in 2H 16 40

41 REFINERY : MORE COMPETITION FROM NEW CAPACITY, HOWEVER, BOOSTED DEMAND STILL BACKS UP Q3-Q4 : DEMAND DRIVEN BY LOW CRUDE PRICE 2016 OUTLOOK : STRONG COMPETITION IN ASIA New capacity 800 KBD in Middle East (Saudi & UAE) pushes more middle distillate to the market in Q3. Winter season still boosts middle distillate demand for heating Transportation consumption drives gasoline spread Gasoline Jet/Kero Diesel Fuel Oil PRICE TREND & FORECAST Unit : KBD Unit : MBD Balance Growth in demand but more balance from new capacity in India & China Surplus More competition from ME & India Supply Demand Import Gasoline Middle Distillate Fuel Oil FACTORS TO WATCH Balance Asia import demand fulfilled by Europe volume USD/BBL ULG95 Dubai Diesel Dubai Fuel Oil Dubai Q1'15 Q2'15 Q3'15 Q4'15E 2015E 2016F Ref : JBC, PRISM - + China s economic slowdown Nuclear policy in Japan Low oil prices stimulate demand globally Postponement of new CDU capacity in China & India 41

42 POLYETHYLENE : STRONG DEMAND IN NEA WHILE MORE PE NEW CAPACITY NEA PE DEMAND REMAINS STRONG AMID SLOWDOWN OF CHINA S ECONOMY MORE PE SUPPLY FROM NEW CAPACITY Million Tons Northeast Asia PE Import Million Tons Global PE Capacity Addition vs Demand Growth 2.95 Demand Growth Europe NEA NAM ME Indian F 2016F Source: IHS Source: IHS SQUEEZED SPREAD BUT CAN STAY OVER 700$/MT FACTORS TO WATCH USD/MT HDPE Price HDPE MOPJ Source: PRISM, Oct 15 Q1-15 Q2-15 Q3-15 Q4-15E 2015E 2016F - + Slowdown of China s economy. Competitiveness of lower polypropylene (PP) price. Tighten ethylene supply. Iran s PE export after sanction lifting. Delay of China s new CTO plants (~2m tons). 42

43 PROPYLENE : OVER-INVESTMENT IN CHINA HAS STARTED TO PRESSURE BUTADIENE : START TO RECOVER 43 CHINA PROPYLENE CAPACITY ADDITION SHIFTS TO ON-PURPOSE In fact, China capacity addition during are enough to supply the world demand growth CHINA BD OPERATING RATE STARTS TO INCREASE DUE TO A LACK OF NEW SUPPLY China BD Capacity Addition vs Demand Growth Source : IHS Source : IHS USD/MT SPREADS TEND TO BE SOFTENED IN 2H15 BD MOPJ PY MOPJ 102 Source: PRISM, Oct 15 Q1-15 Q2-15 Q3-15 Q4-15E 2015E 2016F FACTORS TO WATCH -PROPYLENE More competitive propane export from US PP demand grows faster than expected FACTORS TO WATCH -BUTADIENE Economic slowdown, especially in China and India More BD supply from high-run rate of Naphtha cracker Recovery of natural rubber price Delay startup of on-purpose units in China 43

44 PARAXYLENE : SURPLUS SUPPLY STILL PRESSURE ON MARGIN BENZENE : MARGIN SLIGHTLY IMPROVES IN 2016 Million Tons Source : PCI IN 2016, PX MARKET REMAINS SURPLUS 2.90 However, cutting run rates of high cost producers in Japan and S.Korea and rationalization in Europe will support the market Capacity addition Demand growth AROMATICS MARGINS STAY TO FIRM IN 2016 BENZENE SLOWDOWN IN NEW SUPPLY IN BZ MARKET Million Tons Source : IHS FACTORS TO WATCH Capacity addition Demand growth USD/MT PX MOPJ Benzene MOPJ Source: PRISM, Oct 15 Q1-15 Q2-15 Q3-15 Q4-15E 2015E 2016F - + China economic slowdown More benzene supply from naphtha cracker due to strong olefins margin Resume production of TPPI, JAC and Dragon Aromatics Strong gasoline demand may limit feedstock to aromatics Growing BZ import demand from US Startup of SM and Phenol in Asia 44

45 MEG : MARGIN TENDS TO REDUCE IN 4Q15 AND EXPECTED TO IMPROVE IN 2016 Thousand Tons ม.ค.-15 Source: ICIS MARGIN SQUEEZED IN 2H 2015 ก.พ.-15 China s inventory surges from speculation but seasonal demand lower than expected ม.ค.-15 เม.ย.-15 พ.ค.-15 ม.ย.-15 ก.ค.-15 ส.ค.-15 ก.ย.-15 ต.ค.-15 MEG MARGIN TO BE IMPROVED IN 2016 พ.ย.-15 EXPECT SLIGHTLY TIGHT SUPPLY SITUATION IN 2016 Million Tons Source: PCI, Nov 15 Global MEG New capacity vs Demand growth Capacity - Coal Capacity - Normal Demand Chinese Coal-based industry will probably only run at 70%-75% FACTORS TO WATCH USD/MT USD/MT *MEG Margin = MEG (0.63 x Ethylene) MEG Margin Ethylene 1,087 1, MEG Margin Source: PRISM, Oct 15 Q1-15 Q2-15 Q3-15 Q4-15E 2015E 2016F + - China s policy to boost economy Polyester market growth MEG inventory in China Coal-based MEG technology in China Volatility of crude oil price 45

46 PHENOL/BPA : SLIGHTLY RECOVER IN PHENOL : LESS SURPLUS IN SUPPLY BIS-PHENOL A : BOTTOM OUT FROM 2H 2015 Thousand Tons Capacity addition Demand growth Slightly recover from 2015 as less surplus supply Capacity rationalization in US causes limited volume to Asia, especially China Potential delay of Rabigh Refining (275 KTA) from Q4-16 Thousand Tons Capacity addition Demand growth Less surplus from new capacity due to almost captive used SINOPEC SABIC Tianjin PC (240KTA) may be delayed startup due to the incident in Tianjin PHENOL AND BPA MARGINS TO BE SOFTENED IN Q4 FACTORS TO WATCH USD/MT High restocking demand and lower feed cost Phenol P2F + Producers cut run due to low margin The delay of new supply Capacity rationalization Pressure from new capacity and demand slowdown BPA P2F Q1-15 Q2-15 Q3-15 Q4-15E 2015E 2016F Source: PRISM, Oct 15 - Volatility in feedstock prices Slowdown in downstream demand 46

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