PTG ENERGY PUBLIC COMPANY LIMITED Opportunity Day 2Q/2017 Performance Results
PTG Businesses Retailing and Wholesaling Fuel Products Non-Fuel Products Logistics Business (Fuel logistics and Depot) Renewable Energy Biodiesel Plant 92% Retail 8% Wholesales Convenience Stores (PT Max Mart ) Food and Baverage Lubricating Oils (PT Maxnitron) Ethanol Plant *% Sales Volume Proportion as of 1H2017 PT Auto Services 2
3-5 years plan Sustainable Approach Oil Business Expand our outlets coverage Become the customer s first choice Non-oil Business Enlarge non-oil businesses Stabilize and increase NPM Target 60% net profit portion from non-oil in 2022 Renewable Energy Earn more profitability from integrated business Biodiesel Plant Ethanol Plant Retails Wholesales 3
Agenda Highlights Industry Outlook Business Review and Project Updates Financial Review
Highlights 2Q17 Sales Volume +14% YoY Ranked 3 rd in retail channel Number of Stations 1,506 stations Business Acquisition High growth compare to peers Industry growth in 2Q17 was 2% YoY less than 2Q16 v 2Q15 at 7% Retail volume was still outperformed From continuously expand the coverage of our stations throughout the country Same store sales in 2Q17 increased to 0.215ML/Month from 0.208 ML/Month last year. Focus on COCO model expansion Enlarge customers in BKK and metropolitan areas Punthai holds 99.99% in GFA Corporation Total investment is 205 MB PTG holds 38.26% in AUTOBACS Preliminary investment is 65 MB 5
Industry Outlook
Industry Outlook Thailand Consumption Overall Consumption Unit: Million Liters +0.6% QoQ +2.2% YoY 8,205 7,809 8,136 8,337 8,385 69% 67% 68% 70% 68% +1.9% YoY 16,418 16,722 70% 69% Retail Consumption Unit: Million Liters +1.8% QoQ +3.5% YoY 5,922 5,704 5,967 6,021 6,127 63% 61% 62% 64% 63% +2.7% YoY 11,832 12,148 63% 63% 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 Diesel Benzene 95 Gasohol 95 Gasohol 91 E20 Slow growth in 1H17 at 1.9% YoY compared to 7.5% from 1H16 v 1H15. Major impact was from the slight growth in Diesel at 1.2% from 5.6%. In addition, Mogas growth was 3.4% from 12%. 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 Diesel Benzene 95 Gasohol 95 Gasohol 91 E20 Source: DOEB data Slow growth in 1H17 at 2.7% YoY compared to 11.0% from 1H16 v 1H15. Major impact was from the slight growth in Diesel at 2.6% from 9.5%. In addition, Mogas growth was 2.8% from 13.6%. 7
Oil Market Share by Sales Volume 1.47% 7.69% 7.16% 7.85% 11.47% 2015 13.09% 15.20% 36.25% 1.48% 6.12% 7.74% 8.76% 11.53% 2016 13.46% 13.47% 37.45% 10.15% 11.91% 1.41% 4.93% 7.54% 1H17 12.58% 13.67% 37.82% Market share has gradually increased from 7.69% in 2015 to 10.15% in 1H17 and it is forecasted to reach 11%-11.5% this year. Total consumption 30,607 ML Total consumption 32,362 ML Total consumption 16,722 ML Including Diesel, Benzene 91-95, Gasohol 95, Gasohol 91, and Gasohol E20 Source: Department of Energy Business and Company Data 8
Oil Market Share by Sales Volume (Retail Channel) 14.65% 14.53% 14.57% 14.37% 14.14% 12.99% 12.92% 12.95% 12.55% 13.29% 10.71% 10.56% By Quarter 11.61% Including Diesel, Benzene 91-95, Gasohol 95, Gasohol 91, and Gasohol E20 Source: Department of Energy Business and Company Data 12.42% 12.48% 2Q16 3Q16 4Q16 1Q17 2Q17 12.48% 12.63% 13.29% 6.34% 2Q17 14.37% 40.90% Gradually increased in market share in retail channel. Currently, PTG ranked 3 rd at 13.29%. 9
LPG Market Share by Sales Volume Overall Consumption By Brand Unit: Million Kilogram/Day Household 51.30% Auto 33.71% 4.05% 11.65% 4.38% 4.55% 6.29% 27.89% 40.00% 30.00% 20.00% 10.00% 0.00% 29.94% Industrial 14.99% 27.37% 14.95% 17.40% 30.64% 28.64% 27.97% 27.89% 17.64% 17.68% 17.56% 17.66% 17.29% 17.40% 1.17% 1.79% 2.13% 3.28% 3.97% 4.38% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 8.82% 10
Expanding Number of Stations Unit: Stations COCO 4 year CAGR 32% 1,800 Expected 70% 1,506 1,407 14% 1,150 15% 951 19% 739 22% 574 25% 85% 86% 31% 81% 78% 75% 69% 2012 2013 2014 2015 2016 1H17 2017F coverage in BKK and Metropolitan areas next year Mainly focus on COCO renting model and enlarge customer base in BKK and Metropolitan areas. COCO DODO 11
769 Sales Volume by Channel and Products 4-year retail CAGR 30% Unit: Million Liters 686 734 821 881 83% 91% 95% 92% 92% 1,440 86% 1,702 92% 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 Retail By Channel +7% QoQ +14 YoY Wholesale +18% YoY 24% 30% 28% By Product Mix 26% 27% 76% 70% 72% 74% 73% 24% 76% 26% 74% 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 Diesel Mogas We have directed our focus on retail channel. In addition, Benzene and Gasohol portions start to be more significant in our portfolio. Product 2Q QoQ 2Q YoY 1H YoY Diesel +6% +9% 14% Mogas +11% +31% 33% 2Q17 E20 growth = 91% YoY Gas 95 growth = 35% YoY Gas 91 growth = 33% YoY Benzene = -3% YoY 12
Same Store Sales Growth Unit: ML/Station/Month 0.220 0.210 0.200 0.190 0.180 0.170 0.160 0.150 +2.4% QoQ +3.4% YoY 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Same Store Sales has continuously increased over time from our product and brand recognition even though the growth in Thailand s consumption has declined. 13
Project Updates
Business Acquisition Benefits of the asset acquisition: To strengthen the future growth in F&B business outside the stations To enlarge customers base in B-segment level up To get benefit from the Economy of Scale To add more value to PT Max Card holders To expand the exposure in international markets PT, the nation s leading full-service energy company 15
Business Acquisition Benefits of the asset acquisition: To diversify the business and strengthen the net profit margin To enlarge the group of passenger car customers To add more services and privileges to PT Max Card holders and attract more customers to become PT Max Card members To take a leap in car maintenance services industry To provide a variety of services to customers' needs in the PT stations PT, the nation s leading full -service energy company 16
Palm Complex Updates Palm Product Processing plant (a zero-waste project) consists of crushing mill, refinery, biodiesel plant, olein plant, biomass and biogas electricity plant. The project will start commissioning in 4Q17 The slight delay is from the early beginning of rainy season. Full capacity: Biodiesel 450 KL/Day Olein 200KL/Day 17
We are on your finger tips now 18
Now Available on A N D R O I D ios is coming soon 19
PT Service Volunteer See you at our PT stations! We are excelling in the quality of our service, with more than 300 of our executives and employees volunteering at PT service stations on Saturdays between 8:00 am 12:00 pm during the second half of 2017. 20
Financial Review
Total Revenue A Unit: Baht Million +3% QoQ +22% YoY 31,241 +36% YoY 42,489 B Revenue by business 17,607 15,745 17,941 20,961 21,528 Oil+LPG 98% 1H17 Non-oil 2% 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 Increased from higher sales volume, especially through retail channels, and higher oil retail price compared to last year. Non-oil portion has continuously increased from Punthai Coffee, Max Mart, and Lubricants 22
Gross Profit and SG&A A Unit: Baht Million 1,377 1,216 1,369 1,387 GP +15% QoQ +16% YoY 1,598 1,016 1,060 1,102 1,193 1,309 2,647 1,945 GP +13% YoY Sales 2,985 2,502 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 Gross Profit SG&A Marketing margin recovered from last quarter but still declined from last year due to the oil cost fluctuation and slow adjustment in domestic retail price. B Gross profit by business Oil+LPG 91% 1H17 Non-oil 9% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr With higher gross profit margin, this led to a higher proportion from non-oil businesses at 9% in gross profit compared to 2% in revenue. Gross profit from non-oil is expected to reach more than 15% in 2022. 23
EBITDA and Net Profit A EBITDA Unit: Baht Million +21% QoQ +7% YoY +1% YoY 1,417 1,437 B Net Profit Unit: Baht Million +45% QoQ -16% YoY 610-27% YoY 446 732 547 785 651 786 314 157 307 182 264 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 The increase in QoQ was from better marketing margin and higher sales volume. The drop in YoY was due to the lower marketing margin compared to last year. 24
Key Financial Ratios Unit: Days A Profitability ratios 8.1% 7.0% 7.0% 3.2% 1.2% C 4.3% Liquidity ratios 3.4% 1.7% 1.1% 2015 2016 1H17 GPM EBITDA Margin NPM Efficiency ratios D Cash Cycle Unit: Days 0.62 0.44 11.45 14.53 0.36 12.08 7.83 7.28 5.20 (3.01) 2015 2016 1H17 (6.80) Day in Inventory Avg. Collecting Period Avg. Payment Period B 25.0% 17.1% 10.6% 9.0% 19.9% 7.5% 2015 2016 1H17 ROA ROE 2015 2016 1H17 (6.52) The decline in profitability ratios were from lower marketing margin in 1H17. The marketing margin trend has been increasing since 2Q17. The inventory was reduced to prevent the impact from oil price fluctuation. 25
Key Financial Ratios (Continued) A Leverage Ratios 0.87 0.35 2013 0.30 2014 B Balance Sheet Unit: Baht Million 1.05 0.36 Cash & Cash Equivalent 2015 Current Assets 2016 1H17 13,604 12,527 637 2,204 3,654 Interest Bearing Debt The higher interest bearing debts were from short-term loans for business operations and long-term loans to accommodate the business expansion plan. Company Overview NonCurrent Assets Trades & Other Payables 5,183 Liabilities 4,673 Equity 4,284 10,931 9,686 4,589 Financial Performance Industry Overview 334 2,338 3,748 2016 The majority of assets were PP&E and rental and leasehold rights from continuous expansion of COCO stations with long-term renting model The increase in total liabilities were mainly from trade and other payables from higher sales volume and longterm loans. Business Direction and Growth 1H17 26
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