Analyst Meeting 2Q/2015

Transcription

1 BLS/MS Roadshow London, Edinburgh Analyst Meeting 2Q/2015 September 23-25, 2015

2 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.

3 Agenda 3 PTTGC S BUSINESS OVERVIEW STRATEGIC EXECUTION FINANCIAL PERFORMANCE MARKET OUTLOOK

4 Overview of PTTGC 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 4 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 Our Business Structure 7 Business Units Thailand s Largest Petrochemical Player (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) Refinery = 145 KBD, Condensate Splitter Units = 135 KBD * Calculate (1) Refinery proportionate = 145 KBD, Condensate by percent share Splitter Units = 135 KBD

6 Key Competitive Strengths 6 1 Strategic Relationship with PTT with Secured Feedstock Position and Offtake Agreements 5 2 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 Feedstock Supply Strategic Relationship with PTT with Flexible Feedstock and Secured Product Offtake 1 Product Marketing 79% Polymers Customers (1) 7 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 21% 5% 1% 5% Highly Competitive Cost Structure & Performance mainly driven by Olefins and Derivatives Typical Revenue Breakdown 48% USD/Ton 2014 Global Ethylene Cash Cost by Region % s Typical Adj. EBITDA Breakdown 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. % 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 Feedstock Upstream Intermediates Downstream Proximity to Suppliers and Customers 9 HDPE Exchange Stream Products By-Products Ethylene EO MEG LDPE LLDPE Natural Gas Light Naphtha Cracker Propylene EB EB/SM / SM PO Polyols 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 Nylon 6 Caprolactam Nylon 6 System House GREEN CHEMICALS PC Epoxy Epoxy Resins PMMA Nylon 6,6 PU PU Polyester Fiber/ PET Fiber PET 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 11 PTTGC Board of Directors Mr. Prasert Bunsumpun Chairman Audit Committee CG Committee Nomination and Remuneration Committee Risk Management Committee VP Internal Audit President and CEO Mr. Supattanapong Punmeechaow COU Up Stream Petrochemical Business COD Down Stream Petrochemical Business EVP GPC Refinery and Shared Facilities EVP GPC Aromatics EVP GPC Olefins EVP Engineering and Maintenance SVP Quality, Safety, Occupational Health and Environment EVP Polymers Business Unit EVP EO Based Performance Business Unit EVP Green Chemicals Business Unit SVP - High Volume Specialties Business Unit EVP Marketing, Commercial and Supply EVP Strategic Execution and Excellence EVP Finance and Accounting EVP Corporate Affairs Head Science and Innovation EVP International Business Operation EVP Corporate Strategy Mr. Patiparn Sukorndhaman EVP Organizational Effectiveness EVP Project Executive Director * Effective October 1, 2014

12 Agenda 12 PTTGC S BUSINESS OVERVIEW STRATEGIC EXECUTION FINANCIAL PERFORMANCE MARKET OUTLOOK

13 Directions & Timeline 13 CORE UPLIFT PROJECTS Excellence Projects Debottlenecking 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 Project Timeline GREEN Oleochemical, PLA Succinic Acid PLA/PBS Compound - Bio Fuel - Bio Chemical - Bio Plastic 2015 TOCGC Improvement Aromatics II Debott. Phenol II HDI Derivative Thailand HDI Monomer France mlldpe PO/Polyol US Petrochemical Complex MTP Retrofit Indonesia Petrochemical Complex Green 3Q/15 4Q/

14 2Q/2015 Highlights 14 ENHANCE EXISTING BUSINESS INTERNATIONAL ARENA DIVERSIFY TO SPECIAL CHEMICALS MARKETING CHANNEL MANAGEMENT Operational Excellence Completed synergy projects Debottlenecking projects Map Ta Phut Retrofit Feedstock flexibility Enhance product yield US PetChem Complex Incorporation US entities All work modules are progressing A Step Forward of The Key Jigsaw in PU Chain HoA with partners for PO/Polyols project joint development GREEN ROADMAP Restructure business to strengthen sales/marketing channel Increase stake & control in PTTPM & PTTPL for better management of polymer sales On going study to enhance products value creation Indonesia PetChem Complex Partnership strengthen, more time needed for study BioHub (1 st phase) In discussion with partners regarding Land option Feedstock sourcing and security Utilities supply

15 Debottlenecking & Expansion Synergy Excellence Core Uplift : Excellence Project Update 15 Performance Excellence 2015 Target (MUSD) 6M/15 Actual (MUSD) FY2015 Estimate (MUSD) 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 Off Gas Upgrading at Olefins Project Progress : 99.6% Target COD : 4Q/15 Project Detail: Hardware has been already completed Shutdown of Aromatic 2 leads to the delay of the project Await for commissioning after Aromatic 2 come back online TOCGC Plant Improvement Capacity : EOE +90 KTA CAPEX : 94.2 M$ Progress : 93% Target COD : 3Q/15 Aromatics 2 Debottlenecking Capacity : PX +115 KTA BZ +35 KTA OX +20 KTA CAPEX : M$ Progress : 91% Target COD : 4Q/15 Phenol 2 Capacity CAPEX : 345 M$ Progress : 98% Target COD : 4Q/15 : Phenol +250 KTA Acetone +155 KTA *Updated as of June 2015

16 Core Uplift : Map Ta Phut Retrofit Create feedstock flexibility and lengthen value chain 16 Downstream Product Value Creation REFINERY Naphtha Ethylene 409 KTA PE / Special PE AROMATICS 1,320 KTA (Spot volume) Propylene 211 KTA EO / EG PP Acrylic Acid SAP Compound PyGas Benzene SM PS / Special PS Legends Acetone MMA MS PTTGC Existing Product AN Potential Product Mixed C4 Butadiene ABS / SAN PTTGROUP Product Timeline : MTP Retrofit Configuration is to be finalized by end of 2015

17 Feedstock EO Propylene Cumene 1 Isocyanate TDI/HDI 1 Step Adjacency: PO/Polyols to PU Chain PU Raw Materials MDI 160 KTA 2 PO PU Formulation Polyols System House 17 Toyota Tsusho Trading Company of Toyota motor Toyota group is a major shareholder of 33% Rich global network in more than 60 countries Close relationship with various Japanese OEMs in Auto and E&E Global logistic infrastructure Sanyo Chemical Industries No. 1 Polyols Player in Japan Toyota Tsusho is a major shareholder of 19.4% Owns 40% of PU market share in Japan 30% of employees are researchers and developers Holds more than 1,000 patents Manufactures more than 3,000 types of performance chemical PO Set up JV company Majority Shareholder Capacity Licensor Polyols/ System House Majority Shareholder Capacity Licensor 3Q/16 Construction 200 KTA PO 130 KTA Polyols Total CAPEX of approximately 1 billion USD 2019 COD 2Q/19

18 1 Step Adjacency: US Petrochemical Complex 18 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 FEED Feedstock Project Progress Selected and in final stage to sign contract for dual FEED contractors and project management consultant Received letter of intent from 8 ethane suppliers, of which 6 are upstream and 2 are midstream with term tenor of years at indicative cap ceiling and floor price Total ethane volume of MTA which exceeds required volume of 1.25 MTA Marketing and Logistic 3-4 companies showed interest to make capacity reservation and offtake MEG products in total of the plants capacity. 2-3 companies showed interest to offtake HDPE product Co study with Marubeni on US market BOD approved FEED Study Dual FEED CHECK POINTS 1Q15 4Q Final Inv. Decision COD 2021 Finance Appointed Mizuho as financial advisor Determine key criteria to achieve ECA financing Jointly work with 7 Thai banks regarding timeline until financing close 18

19 1 Step Adjacency: US Petrochemical Complex 19 Human Resource Sent project team to the US Recruited local staff to strengthen the team s capability i.e. project director 1 st Group of Project Team to US Incorporate US Entities PTTGC America Corporation as an investment arm and PTTGC America LLC as a project company to study and conduct FEED study Partner Continue to work with Marubeni Open to discussion with additional partners who will bring more value to the project Site, Permitting & State support Total area of 3 parcels of land is 505 acres Engaging to get land option to use land during FEED study with minimum fee of < 1 mil USD Start site preparation and permitting with the support from Ohio State Engaging EIA consult and local counsel to prepare all permits

20 Green: Bio-Hub Concept 20 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 Agenda 21 PTTGC S BUSINESS OVERVIEW STRATEGIC EXECUTION FINANCIAL PERFORMANCE MARKET OUTLOOK

22 2014 Overview of Business Performance 22 (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

23 2Q/15 Overview of Business Performance (Unit: MB) 2Q/14R 1Q/15 2Q/15 YoY % + /(-) QoQ % + /(-) Sales Revenue 147,288 99, ,169-25% 12% EBITDA 10,288 10,473 16,055 56% 53% EBITDA Margin (%) 7% 11% 14% 107% 37% Adjusted EBITDA* 11,340 11,606 13,784 22% 19% Adjusted EBITDA Margin (%) 8% 12% 12% 61% 6% 23 Net Profit 6,173 5,631 8,974 45% 59% EPS (Baht/Share) % 59% Note: * Adjusted EBITDA refers to EBITDA excluding impact of inventory value (Inventory gain/(loss) and NRV) and provision for business restructuring 26% 2Q/15 Revenue and Adjusted EBITDA Structure Sales Revenue Adjusted EBITDA 3% 6% 3% 4% 20% 47% 111,169 MB 13,784 MB 13% 60% 18% Business Unit : 2Q/14 1Q/15 2Q/15 Refinery Aromatics Olefins and Derivative % Adjusted EBITDA Margin Green HVS Average

24 Olefins & Derivatives EBITDA margin rose to 28% supported by naphtha cracker 24 HDPE Price (USD/Ton) Ethane Flow (Tons/Hour) Olefins & Derivatives EBITDA Margin 1, % 1, % EBITDA margin 28% (+3% YoY) OPEX SAVINGS (5% saving from budget in 2Q/15) I-1 & PTTPE I-1 & PTTPE Naphtha Cracker Margin RISE I-4 16% I-4 33% 32% 23% 2Q/14 2Q/15

25 Competitiveness Remains 25 PTTGC gas cracker s cost is still more competitive over naphtha cracker Naphtha-based cracker yield around 53% by product, while ethane based cracker yield only 22% by product Current by-product prices have considerably declined, minimizing their premiums over naphtha. Conversion cost of naphtha cracker is higher than ethane cracker

26 Strong Financial Position 26 Statements of Financial Position THB 380 Bn THB 395Bn Loan Type ST Bank Loan 0% Cash +ST Investment CA Liab. IBD THB 110 Bn Debenture 49% LT Bank Loan 51% Interest Rate Currencies PPE Non CA As of Dec 31, 2014 As of Jun 30, 2015 Share Holder s Equity 57% Fixed 60% THB 43% Float 40% USD&Others Cost of long term debts ~ 4.29% (Include W/H Tax) Average loan life after refinancing Years Maturity of Financial Debt* as at Jun 30, 2015 Key Financial Ratios THB Bn PTTGC PPCL Others Total Net IBD/EBITDA NET IBD/Equity ROE ROA * After Refinance Jun Sep Dec Mar Jun 15 Treasury policy Net IBD to EBITDA ratio of 2.4x Net IBD to Equity ratio of 0.7x % 12.16% 9.02% 8.37% 6.86% 6.40% 7.57% 5.05% 4.92% 6.10% 30 Jun Sep Dec Mar Jun 15

27 Prudent CAPEX Plan to Support Growth 27 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 27

28 Agenda 28 PTTGC S BUSINESS OVERVIEW STRATEGIC EXECUTION FINANCIAL PERFORMANCE MARKET OUTLOOK

29 Market Outlook 29 Crude IEA forecast oil demand growth of 1.6 mbpd this year while oversupply situation persist Expects Dubai crude price to rebound by the end of the year from seasonal demand and non-opec production slowdown Refinery Low oil prices boost more gasoline demand and push middle distillate to an oversupply situation Aromatics Slightly better PX and BZ margin in 2H/15 due from strong demand of gasoline, hence, limited feedstock to aromatics plants. Polyethylene High cracker turnaround (scheduled shutdown) and seasonal demand support polyethylene margin in 2H/15 MEG MEG margin is expected to improve by the end of the year from China stock building for polyester seasonal demand and delayed start up of new projects. Phenol/BPA New capacity of both phenol and BPA will continue to pressure margin in 2H/15. High cost producer will need to cut run

30 Agenda 30 APPENDIX 2Q/15 FINANCIAL PERFORMANCE DETAIL MARKET OUTLOOK

31 Business Environment and Operations Recap Average and Ending Dubai Crude Price: USD/BBL Average Price Average and Closing FX : THB/USD Average FX Closing Price Closing FX o Dubai rebounded from average at 51.9 USD/BBL in 1Q/15 to 61.3 USD/BBL in 2Q/15. As a result, PTTGC reported Stock Gain & NRV totaling to 2,271 M.THB in 2Q/15 o o o FX Loss amounting to 1,235 M.THB, resulting from depreciation in THB against USD from THB/USD at the end of 1Q/15 to THB/USD at the end of 2Q/15 Slight decline in Mkt GRM and Aromatics P2F, while HDPE price improved QoQ o ULG95-Dubai 19.8 USD/BBL +23% YoY +29% QoQ o Diesel-Dubai 13.7 USD/BBL -14% YoY -16% QoQ o FO Dubai -3.6 USD/BBL +67% YoY -91% QoQ o PX-Cond 391 USD/Ton +17% YoY +17% QoQ o BZ-Cond 271 USD/Ton -27% YoY +25% QoQ o HDPE 1,375 USD/Ton -12% YoY +16% QoQ o MEG 1,027 USD/Ton -6% YoY +14% QoQ Overall utilization rate of major businesses 2Q/14 1Q/15 2Q/15 YoY + /(-) QoQ + /(-) Refinery CDU Utilization (%) 103% 102% 100% -3% -2% Aromatics BTX Utilization (%) 89% 88% 85% -4% -2% Olefins Utilization (%) 91% 96% 89% -2% -7% Polymers Utilization (%) 106% 107% 92% -14% -16% EO Based MEG Utilization (%) 99% 108% 106% 8% -2% Phenol Phenol Utilization (%) 131% 31131% 121% -9% -10% BPA Utilization (%) 107% 114% 85% -22% -29% 31

32 FO - DB Diesel - DB JET - DB ULG 95 - DB Refinery Performance 2Q/15 Strong Market GRM with High Stock Gain Petroleum Products - Dubai Spread (USD/BBL) +15% YoY % YoY % YoY +29% QoQ -6% YoY -21% QoQ Total Intake (KBD) CDU U-Rate 102% 101% 101% 103% 102% 101% 102% 100% Crude +3% YoY Condenstate Residue & Others % YoY +1% QoQ -11% YoY (9.6) Naphtha+Ref. Jet Diesel Fuel Oil Others (2.7) +72% YoY (8.5) (10.7) (8.4) Sales Volume (KBD) +1% YoY (5.6) (1.9) (3.6) -14% YoY -16% QoQ +67% YoY -91% QoQ +3% YoY +5% QoQ % 16% 16% 16% 10% 16% 16% 15% 13% 14% 13% 13% 12% 15% 17% 10% 52% 49% 52% 51% 54% 45% 46% 51% 13% 13% 7% 9% 14% 13% 14% 14% 12% 14% 5% 8% 9% 9% 9% 10% Gross Refinery Margin (USD/BBL) Market GRM Hedging Gain/(Loss) (0.17) (1.50) (0.69) (2.92) (14.68) (0.31) Market GRM GRM on CDU GRM on CRS Stock Gain/(Loss) Net NRV Accounting GRM (7.69) (0.04)

33 Naphtha - Cond PX FECP - Cond BZ Spot - Cond Prices Aromatics Performance 2Q/15 Strong Market P2F with High Stock Gain 33 Aromatics Products Prices and Spread (USD/Ton) Condensate Erawan PX FECP BZ Spot Korea 1,280 1,303 1,350 1,256 1, % YoY +0% YoY % YoY +53% YoY 1,035 1,297 1,293 1, % QoQ Products to Feed Margin (USD/Ton BTX) +17% YoY +17% QoQ +9% YoY -25% QoQ BTX U-Rate BZ Group PX Group Naphtha Group Other By- Products BTX U-Rate and Sales Volume (KTons) 90% 86% 91% 89% 82% 63% 88% 85% -6% YoY 38% 40% 38% 37% 36% 33% 33 45% +1% YoY +22% QoQ 1,666 1, % 23% 24% 23% 22% 21% 25% 21% 36% 26% 29% 25% 28% 33% 35% 30% 28% 12% 8% 12% 12% 9% 11% 2% 13% Market P2F Stock Gain/(Loss) Net NRV Hedging Gain/(Loss) Accounting P2F (7.90) (68.54) (398.22) (27.63) (0.02) (235) (0.37)

34 Prices MEG ACP 0.65Ethylene HDPE - Naphtha 1,622 1,569 1,561 1, Olefins and Derivatives Performance Improved HDPE price bring back EBITDA margin Olefins Derivatives Prices and Spread (USD/Ton) HDPE (FILM) SEA LLDPE CFR SEA LDPE CFR SE Asia MEG ACP Naphtha MOPJ HDPE Price -18% YoY 1,296 1,278 1,560 1,578 1,601 1,569 1,604 1,281 1,554 1, ,182 1, HDPE Price -12% YoY +16% QoQ HDPE (FILM) SEA 1,561 1,281 1,554 1,569 1,604 1,448 1,188 1,375 LLDPE CFR SEA 1,569 1,278 1,560 1,578 1,601 1,431 1,181 1,375 LDPE CFR SE Asia 1,622 1,296 1,639 1,605 1,601 1,440 1,192 1,401 MEG ACP 1, ,182 1,093 1,143 1, ,027 Naphtha MOPJ % YoY +22% YoY +17% QoQ -9% YoY 1,639 1,605 1,601 1,440 1,192 1,401 1,431 1,181 1,448 1,375 1,188 1,035 1, , % YoY -47% QoQ 126 U-Rate (%) Olefins 84% 92% 77% 91% 94% 101% 96% 89% HDPE 100% 103% 93% 107% 114% 115% 109% 97% LLDPE 105% 86% 99% 112% 84% 105% 110% 61% LDPE 104% 109% 115% 93% 104% 106% 99% 119% Total PE 102% 100% 99% 106% 104% 111% 107% 92% MEG 82% 107% 65% 99% 112% 104% 108% 106% Sales Volume (KTons) Olefins HDPE LLDPE LDPE Total PE MEG GAS : NAPHTHA Intake % Ethane Other Gas Naphtha Adjusted EBITDA Margin 34 KTons 1,730 1, , % 8% 13% 11% 4% 6% 7% 8% 31% 37% 27% 35% 40% 36% 37% 38% 57% 55% 60% 54% 55% 58% 56% 54% 25% 24% 24% 25% 28% 25% 19% 28% 34

35 BPA-Phenol Phenol-BZ Prices Phenol and BPA Performance Lower Margin from Soften Product Spread and Sales Volume 35 Phenol/ BPA Prices and Spread (USD/Ton) U-Rate and Sales Volume (KTons) 1,645 1,440 1,295 1, Benzene Phenol BPA 1,638 1,653 1,894 1,424 1,456 1,592 1,595 1,364 1,334 1, ,297 1,293 1, U-Rate Phenol 104% 126% 78% 131% 132% 132% 131% 121% BPA 88% 100% 70% 107% 104% 116% 114% 85% Sales Volume (KTons) +23% YoY +0% YoY -12% QoQ Phenol (CMP) 1, ,424 1,456 1,592 1, BPA (CMP) 1,645 1,349 1,638 1,653 1,894 1,595 1,364 1,334 Benzene 1, ,297 1,293 1, % YoY % YoY -27% QoQ 175 Phenol BPA 41% 46% 40% 42% 48% 40% 41% 52% 59% 54% 60% 58% 52% 60% 59% 48% Adjusted EBITDA Margin 19% 16% 13% 13% 6% 7% 4% 7% % YoY % YoY -22% QoQ 35

36 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 Phenol and BPA Soon getting on up trend after hitting the bottom 36 $/Ton 1,100 Phenol and BPA Market P2F Margin 1, Historical Market P2F Margin P2FM-PH P2FM-BPA Note: Phenol Market P2F: BPA Market P2F: Phenol Benzene Propylene Acetone BPA Phenol Acetone

37 2Q/15 Income Statements Consolidated 37 2Q/2014** 1Q/2015*** 2Q/2015 YoY QoQ MB % MB % MB % MB % MB % 1 Sales Revenue 147, , , (36,119) -25% 11,918 12% 2 Feedstock Cost (123,278) (84) (75,721) (76) (86,168) (78) (37,110) -30% 10,447 14% 3 Product to Feed Margin 24, , , % 1,471 6% 4 Variable Cost (7,287) (5) (6,809) (7) (6,131) (6) (1,156) -16% (678) -10% 5 Fixed Cost (4,370) (3) (3,514) (4) (4,003) (4) (367) -8% % 6 Stock Gain/(Loss) & NRV 1,187 1 (1,133) (1) 2, ,084 91% 3, % 7 Gain/(Loss) Commodity Hedging (188) (0) (72) (0) (479) -118% % 8 Other Income 1, , % % 9 SG&A (2,442) (2) (2,339) (2) (2,384) (2) (58) -2% 45 2% 10 Provision for business restructuring (2,239) (2) (2,239) -100% 0 N/A 11 EBITDA 10, , , ,767 56% 5,582 53% 12 Depreciation & Amortization (4,052) (3) (3,979) (4) (4,062) (4) 10 0% 83 2% 13 EBIT 6, , , ,757 92% 5,499 85% 14 Finance Cost (1,088) (1) (1,076) (1) (993) (1) (95) -9% (83) -8% 15 FX Gain/(Loss) (1,235) (1) (1,308) -1792% (1,760) -335% 16 Shares of profit/(loss) from investments (60) -37% (152) -59% 17 Income Tax Expense (563) (0) (499) (1) (932) (1) % % 18 Net Profit 4, , ,937 *** 8 4,115 85% 3,237 57% Profit/(loss) attributable to: 19 Owners of the Company 6, , , ,801 45% 3,343 59% 20 Non-controlling interests (1,351) (1) 69 0 (37) (0) 1,314 97% (106) -154% 21 Adjusted EBITDA* 11, , , ,444 22% 2,178 19% Note: * Adjusted EBITDA refers to EBITDA excluding impact of inventory value (excludes Inventory gain/(loss) and NRV) and provision for business restructuring ** Restated 2Q/2014 Income Statements from the implementation of new accounting standards (Pack 5) *** Restated 1Q/2015 Income Statements to reflect share purchase of PTTPM on the basis of business combination under common control 37

38 Agenda 38 APPENDIX 2Q/15 FINANCIAL PERFORMANCE DETAIL MARKET OUTLOOK

39 2014 1Q15 2Q15 3Q15 4Q15 CRUDE OIL : HIGH VOLATILITY 39 VOLATILITY FROM DEMAND/SUPPLY VOLATILITY FROM GLOBAL ECONOMY mbpd Demand Surplus Supply mbpd IEA forecast oil demand growth 1.6 mbpd this year But supply is still over demand OPEC keeps high output Shale oil producers compete by cost reduction China s economic slowdown Manufacturing PMI below 50 since March 15 Export shrinks 8.3% in July Yuan devaluation for stimulating export Investors sell off crude net long position No. of Contracts 5-May 10-Aug 288, ,184 Brent Price USD/BBL CRUDE PRICE IS HIGHLY VOLATILE Source: PRISM, July Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 58.0 PRISM forecasted Dubai price rebound in Q4 from seasonal demand and non-opec production slowdown (not including Yuan devaluation effect) - + FACTORS TO WATCH Iran s crude export after sanction lifting More surplus and high crude inventory level globally U.S. crude export prohibition lifting China s economic recovery from Yuan devaluation Delay of U.S. interest rate hike Hurricane season in U.S. and severe winter Geopolitics that may cause supply disruption

40 REFINERY : GRM TENDS TO STAY LOW IN 2H15 40 GASOLINE CONSUMPTION GROWS HIGH GASOLINE AND DIESEL SPREADS CHANGE ROUND UNIT : KBD UNIT : KBD 170-1,195-1, LPG Naphtha Gasoline Jet/Kero Diesel Fuel Oil Naphtha Gasoline Jet/Kero Diesel Fuel Oil Gasoline becomes more balanced -1,200 USD/BBL 25 ULG95 Dubai Diesel Dubai 0 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Low oil prices boost more gasoline demand than diesel New refineries are designed for diesel production Asian refineries run high rate for gasoline with more diesel surplus GASOLINE OUTPERFORMS DIESEL THIS YEAR USD/BBL Source: PRISM, July ULG95 Dubai Diesel Dubai Singapore GRM Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fuel Oil Dubai - + New Indian Paradip (capacity 300 kbd) start-up in Sep More product export from U.S. refiners due to low domestic crude price Low oil prices stimulate demand Severe winter season FACTORS TO WATCH Refinery cut run e.g. Sinopec to start cut run from Oct

41 AROMATICS : MARGIN SLIGHTLY IMPROVES IN 2H15 41 PX MARGIN WILL SLIGHTLY IMPROVE PX margin will slightly improve from H1 due to No more new capacity until next year Margin is supported by incident and technical problems Dragon Aromatics explosion in April (PX 1.6 MTPA) Jurong Aromatics remain S/D (PX 800 KTPA) India s Jamnagar delayed S/U (PX 2.3 MTPA) Seasonal demand in Q4 before New Year Strong gasoline price BZ MARGIN IMPROVES FROM U.S./CHINA IMPORT BZ margin will improve from H1 due to China continues import for downstream Arbitrage to USGC opens in H2 KT 200 CHINA S BENZENE IMPORT AROMATICS MARGINS IMPROVE FROM H1 FACTORS TO WATCH USD/MT PX MOPJ BZ MOPJ USD/MT 1H15 2H15 PX-MOPJ BZ-MOPJ Source: PRISM, July 15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec + - Strong gasoline demand in China may limit feedstock to aromatics Results of China s Yuan devaluation More benzene supply from naphtha crackers

42 POLYETHYLENE : PRICE AND MARGIN STAY HIGH IN H2 42 HIGH CRACKER T/A IN H2 SUPPORTS PE MARGIN Million Tons ASIAN CRACKER CAPACITY OUTAGE Source : IHS 0.75 Unplanned Scheduled Q1 Q2 Q3 Q4 Unplanned S/D boosted ethylene price higher than HDPE Scheduled S/D in H2 will support PE margin PE PRICE & SPREAD STAY HIGH IN H2 SEASONAL DEMAND IN H2 SUPPORTS PE MARGIN Million Tons CHINA S POLYETHYLENE IMPORT Average LL HD Q1 Q2 Q3 Q4 China s import PE almost 5 MT in H1 (record high) China tends to import more in H2 for manufacturing season LD FACTORS TO WATCH USD/MT 1,358 1,395 1,373 1,329 1,400 1,278 1,255 1,129 1,157 1,235 1,292 1,272 1,252 1,200 HDPE CRS SEA 1, HDPE MOPJ USD/MT 1H15 2H HDPE SEA 1,291 1,273 HDPE-MOPJ Source: PRISM, July 15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec + - Results of China s Yuan devaluation Iran s PE export after sanction lifting EU 13.8% ASIA 83.5% 2011 (Before Sanction) Export 1.5 MT Competitiveness of polypropylene (PP) 2014 (During Sanction) Export 2.0 MT Asia 81.1% 98.0% EU 18.3% 0.3% FSU 0.3% 1.7% Africa 0.3% 0.0%

43 PROPYLENE/BUTADIENE : SPREADS TEND TO BE SOFTENED 43 PROPYLENE PRESSURED BY NEW CAPACITY Million Tons (0.39) 2.25 New Cap S/U (1.14) T/A (0.42) (0.34) 1Q15 2Q15 3Q15 4Q15 BUTADIENE ALSO PRESSURED BY NEW CAPACITY Thousand Tons New Cap S/U (49) (167) T/A 95 (48) 160 1Q15 2Q15 3Q15 4Q15 (80) Propylene gained benefits from cracker and on-purpose unit turnaround season and unplanned outage Almost 3 MTPA of new capacity will start up in Asia, worsening oversupply situation Low propane price will bring propylene price down Butadiene also gained benefits from New cracker turnaround season Cap as well as unplanned S/U T/A outage High natural rubber price in 2Q15 Butadiene also has more new capacity, mainly from onpurpose units (BDH) which require very higher margin SPREADS TEND TO BE SOFTENED IN 2H15 USD/MT USD/MT 1H15 2H PY-MOPJ BD-MOPJ BD MOPJ PY MOPJ 136 Source: PRISM, July 15 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec + - FACTORS TO WATCH More tires consumption from increasing light vehicle sales in U.S. and China and more driven mileage from low oil price Uneconomical BD on-purpose units run low rate Delayed start-up of new projects More supply from naphtha crackers Falling natural rubber price from peak in June Natural Rubber Price = 244 Yen/Kg (1 Jun) = 194 Yen/Kg (14 Aug)

44 DAYS MEG : MARGIN TENDS TO IMPROVE IN 4Q15 44 MARGIN WILL IMPROVE FROM T/A AND DEMAND LOW INVENTORY IN CHINA WILL SUPPORT MARGIN Thousand Tons New Cap S/U (219) T/A 460 (357) (347) 327 1Q15 2Q15 3Q15 4Q15 29 (245) MEG margin was over $200/MT during low inventory in 2013 Shore Tanks Producers MEG price stayed above USD 900/MT but margin was squeezed by high ethylene price Heavy turnarounds in Asia and Middle East as well as seasonal demand support MEG margin in 2H15 End Users MEG MARGIN TO BE IMPROVED IN 4Q15 FACTORS TO WATCH USD/MT USD/MT 1H15 2H15 MEG Margin Ethylene 1,224 1, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: PRISM, July China s stock building Results of China s Yuan devaluation Polyester seasonal production in Q4 Delayed start-up of new projects Polyester-grade coal-based MEG China s polyester production increases in Q4

45 PHENOL/BPA : ENTERING INTO DOWN CYCLE 45 Thousand Tons PHENOL : NEW CAPACITY PRESSURES MARGIN 83 (55) 200 (202) 200 New Cap S/U T/A (160) 221 1Q15 2Q15 3Q15 4Q15 (16) BIS-PHENOL A : ALSO PRESSURED BY NEW CAPCITY Thousand Tons (48) 43 New Cap S/U (57) T/A 63 (70) 1Q15 2Q15 3Q15 4Q15 83 (6) Phenol margin was quite high from delayed plant start-ups and turnaround season New capacity will pressure margin Some phenol producers will cut run due to low margin BPA margin was quite high from delayed plant start-ups and turnaround season New capacity will pressure margin PHENOL AND BPA MARGINS TO BE SOFTER IN H2 USD/MT USD/MT 1H15 2H15 Phenol Margin BPA Margin Phenol Margin BPA Margin Source: PRISM, July 15 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec + FACTORS TO WATCH Producers cut run due to low margin MITIGATION MEASURES DURING DOWNTURN Operational Excellence e.g. reliability, energy efficiency, product quality Marketing Excellence e.g. portfolio management, pricing excellence

46 2015 Shutdown Plan 46 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 1Q/15 2Q/15 3Q/15 4Q/15 28 Jul-9 Oct (74) 29 Mar-13 Apr (16) 27 Jun-29 Jul (33) 27 Mar-16 Apr (21) 6-30 Apr (25) Jun (17) 19 Sept - 7 Oct (19) Oct (15) 11 May-15 Jun (35) 9-4 Nov (16) 26 Jun-19 Aug (55) May (7) 6-23 May (18)

47 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