analyst briefing presentation fy11 operating...

Investor Presentation

NDR Hosted by DB-Tisco Securities, Europe - April 22-26, 2013

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

Agenda

PTTGC Business Profile

Strategy and Execution

Market Outlook

FY12 Performance Recap

3

A Chemical Flagship of PTT Group with Compelling Strengths

4

• Largest gas-based petrochemical producer in

Thailand and the fifth in Asia

• 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

• Strong footprint in fast growing regions with 5

operating countries worldwide

• Committed to operational excellence targeting

best in class/ first quartile business efficiency

$18.8bn

SALES

$1.9bn

EBITDA

$1.1bn NET PROFIT

3,509

EMPLOYEES

$812mn

FREE CASH

FLOW*

>= 30%

DIVIDEND

POLICY

2012 Figures, FX THB 30

8.45 MTPA

CAPACITY

*Free cash flow for investment after excluding debt service and dividend

Flexible Feedstock and Highly Competitive Cost Structure

5

Flexible Feedstock and By-Product Enhancement

PTTGC's refinery (145 KBD) is one of the most complex refineries in Thailand, with Nelson Index of 10.17 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 distillate

- Pygas from Olefins unit sent to Aromatics for BTX - Offgas from Refinery sent to Cracker for olefins

products

Feedstock Supply Product Marketing

Refinery

Aromatics

Olefins /

Polymers

Others

Condensate

Crude Oil

Others

Ethane, Propane, LPG

C5-C9

C10-C25

C2-C4

Olefins

100% Polymers (1)

46% (2)

54% (2)

Feedstock Supply Commercial Agreements Product Marketing Commercial Agreements

Customers

Others

70% (2)

30% (2)

103

318

799 824 830 883

951 967 1,006

-

200

400

600

800

1,000

1,200

MDEEthane

NAMEthane

NEA LPG NAMNaphtha

MDE LPG MDENaphtha

NEANaphtha

SEANaphtha

WEPNaphtha

Global Ethylene Cash Cost by Region

USD/Ton

2012E (3)

1. PTT owns 50%, PTTGC and IRPC each owns 25% in PTTPM.

2. FY12

(5)

Source: IHS (formerly CMAI) as of July 2012.

Note: MDE = Middle East, NAM = North America, NEA = Northeast Asia, SEA = Southeast Asia, WEP = Western Europe.

3. PTTGC ethylene cash cost is based on Company estimate and ethane cracker only. 2012 PTTGC cash cost takes into

account the effect of the renewal of gas price agreement.

4. MDE cash costs are average values of Iran and Saudi Arabia.

(5) (4)

FY12 Sales Portion by Business Unit

6

68%

32%

Refinery

Aromatics

31%

69%

Export

Domestic 8%

92%

Export

Domestic

Export Domestic

Olefins

Export

65%

Domestic 35%

Polymers

Export

Domestic 30%

70%

EO-Based

Export

Domestic 23%

77%

Green (ME, FA)

Total Sales

THB 563 billion*

39%

22% PTTGC

Others 39%

34%

35%

31%

PTTGC

34% 33% PTTGC

Others

Others 33%

By Thailand’s Market Share

HDPE

LDPE

LLDPE

Import

Import

Import

Sales portion in quantity (ton)

*2012 Figure, FX THB 30

Natural Gas

Crude Palm Oil

Crude

Condensate

Cracker

Aromatics Plants

Refinery

Ethylene

HDPE

LLDPE

LDPE

MEG

Propylene

Oleochemicals

Paraxylene

Benzene

PTAPET Fiber/Resin

EO

Ethanolamine

Ethoxylate

Cyclohexane

CumenePhenol

Acetone

EB/SM

PS

BPA

Methyl Ester(B-100)

PC

Caprolactam Nylon 6

Fatty Alcohol

MMA PMMA

Epoxy Resins

ABS

SBR

PP

PTT Phenol

Petroleum Products

- LPG- Reformate- Light Naptha- Jet Fuel- Diesel- Fuel Oil

Reformate, Heavy

Naphtha

Pygas

Condensate Residue,

Hydrogen

Light Naphtha

C3,C4

OffGas Mixed C4 Butadiene

PO

PUTDI/HDI

Toluene

Polyols

Orthoxylene

Cracker Bottom,

Hydrogen

PA Plasticizer

1. PTTGC does not currently produce these products.

REFINERY & SHARED FACILITIES

AROMATICS OLEFINS POLYMERS EO-BASED

PERFORMANCE GREEN CHEMICALS

HIGH VOLUME SPECIALTIES

Feedstock Upstream Intermediates Downstream

Proximity to Suppliers and Customers

Exchange Stream

Products

By-Products

Potential Product Opportunities (1)

Petroleum Products - LPG - Reformate - Light Naphtha - Jet Fuel - Diesel - Fuel Oil

Fully Integrated Petrochemical and Refinery

Operations with Diversified Product Portfolio

7

Agenda



Market Outlook


8

PTTGC’s Strategies Overview

9

“To be a Leading Chemical Company for Better Living”

10

Methodical approach to achieving business excellence

Operational

Excellence

Marketing

Excellence

Synergy Project

Excellence Debottleneck

CAPEX

Excellence

Energy

improvement

Reliability

improvement

Other Improvement

Product

development

Customer / Portfolio

mgmt

Strategic pricing

Build global reach

Sales force

effectiveness

Product upgrade

Cost saving from

share tank and

facility

Steam Cost

reduction

PX expansion

Olefin & Polymer

expansion

Refinery derivative

Polymer derivative

Capital Project

Management

Engineering

Procurement

Construction

Project Mgmt.

1 2 3 4 5

Core Uplift 1-Step Adjacencies Emerging Business Models

2012

EBITDA uplift USD 53 mn USD 25 mn USD 9 mn

Execution to Reflect a Well Defined Strategy

“In 2012, we achieved EBITDA uplift of USD 87mm from Operational Excellence,

Marketing Excellence, and Synergy Project Excellence”

Operational Excellence

------- LAGGARDS-------- -------- LEADERS ------

To achieve 1st quartile of energy efficiency and reliability

Refinery

- Alternative feedstock

- Opportunity crude and

condensate

- Processed high tan crude

- Reliability Improvement

- Catalyst improvement

- Yield improvement

- Plant flexibility improvement

- New feedstock sourcing (Condensate)

- Yield Improvement

- Variable cost improvement

- Energy saving program for HDPE I-1

- Hexane/nitrogen recovery unit

installation

Aromatics Olefins and Olefins Derivatives

Major Activities in 2012

Benefit Expected per Year

2013-2017

~ USD 91 mn

2012 Achievement

EBITDA uplift

USD 53 mn

Uncommitted CAPEX for

Op Ex

2013-2017

~ USD 150 mn

11


Source: Solomon Associates and Phillip Townsend Associates

Refinery and aromatics benchmarked against Asia Pacific peers

Olefins, polymers and EO/EG benchmarked against world peers

1

Major Activities for Polymers BU in 2012

Benefit Expected per Year

2013-2017

~ USD 85 mn

2012 Achievement

EBITDA uplift

USD 25.1 mn

Uncommitted CAPEX

for Mkt Ex 2013-2017

~ USD 10 mn

Marketing Excellence Core Uplift 1-Step Adjacencies Emerging Business Models

39%

22% PTTGC

Others 39%

34%

35%

31%

PTTGC

34% 33% PTTGC

Others Others 33%

HDPE

LDPE LLDPE

Import

Import Import

- Expanded domestic sales of

- LLDPE 34% (2012 target = 27%)

- LDPE 34% (2012 target = 30%)

- Total PE : 36% (2012 target = 32%)

- Increased portion of high value

products (HVP) from 7% to 10% of

total polymers revenue, and

expanded 7 grades of HVP

12 12

2

Synergy Projects Excellence

Exchange Stream

Products

By-Products

2012 Achievement

EBITDA uplift USD 9.1mm

Synergy Projects

Expected

Investment

(USD mm)

Expected

Benefit per

year

(USD mm)

Target

Completion Progress

1.Product upgrade

1.1 Offgas 177.7 76.7 4Q/14

- BoD approved additional budget for

enclosed ground flare, pipe-rack and

pipeline around US$35.7mm.

- Tie-in works in each plant are on going.

1.2 C3/C4 Stream 5.5 35.1 End of

2012

- Completed.

- Benefit capture depends on economic and

supply availability of each feed type.

(subject to HDPE spread)

1.3 Heavy Aromatics 0.0 1.3 Jan. 1,

2012 - Completed.

1.4

Heavy Gasoline,

Light Cracker

Bottoms and

Cracker Bottom

5.7 28.8 End of

2012

- Completed.

- 1st batch of 3-stream was transferred to

refinery on Dec 20th, 2012.

1.5 Pure H2 via New

PSA 19.8 6.6 2Q/14

- Construction is 24%- on schedule

- Completed commercial negotiation for PSA

package.

- BOI approved PSA project to get investment

promotion.

2. Cost Saving from

share tanks and jetty 0.0 0.6 2Q/12

- Signed contract with Thai Tank Terminal to

maximize utilization of existing idle facility –

completed.

3. Steam cost reduction Under Study Under

Study 4Q/14

- Construction permit for box culvert is on

going to discuss with external related parties,

plan to get permit within Q1/2013.

Total 208.7 149.2

3

Cracker

Refinery

Natural Gas

Condensate

Crude

Light

Naphtha

OffGas

Pygas C3, C4

Condensate

Residue,

Hydrogen

Cracker

Bottom,

Hydrogen

Reformate,

Heavy

Naphtha

Aromatics

Plants

13


14

Debottleneck/By-Product Value Enhancement 4


Debottleneck - PTTPE Cracker and Polymer

Plants

Downstream debottleneck expansion to

capture fully-integrated margin by converting

additional ethylene into downstream products

Expected additional capacity of 15-20%.

Subject to feedstock availability from PTT

Status: Under study of plant configurations

Debottlenecking - PX capacity

Investment of US$143mm

Increases existing capacity at AROII

from 655Kton to 770Kton (total PX

capacity from AROI and ARO II to

increase from 1,195 Kton to 1,310 Kton)

Expects completion by 3Q/15

Status: Under technical study

Quench oil tower modification project

Investment of US$3 mm

To reduce naphtha: gas portion (liquid/vapor

ratio) from 0.95 to 0.60 at I4-1 (mixed feed

cracker)

Expects completion by end 2014

Status : Under technical study and procurement

C4 Value Enhancement

Investment of US$262mm

C4 upgraded to Butadiene 75 kton and Butene-1

25kton

Expects completion by 2013 and starts commercial

operation 1Q/14

Status: Under construction

2014 2015 2014 2016

15

CAPEX Excellence

Be a world-class center of excellence for

capital projects and maintenance service

Capital Project Management

Capital Project management

Engineering

Procurement

Construction

Project management

Management System (organization, roles, processes, systems)

People system (capabilities, mindsets and behaviors)

Conceptual

design

FEED

Detailed

design

Quality gate

approach

Eng. Process

mgmt.

Minor plant

modification,

small proj.

Lean

engineering

Cost effective

sourcing

Global

sourcing

Life cycle cost

assessment.

Vendor

management

Demand

management

Procurement

process mgmt.

Construction

process mgmt.

Subcontractor

management

Site

management

Site safely

Testing

commissioning

Master

scheduling/

schedule mgmt.

People and

resource mgmt.

Proj. cost

control

Risk identification

and mitigation

Perf. mgmt.

(Incl KPls)

Interface mgmt.

Contract and

claim mgmt.

Document control

1.1

1.2

1.3

1.4

1.5

1.6

1.7

2.1

2.2

2.3

2.4

2.5

2.6

31

3.2

3.3

3.4

3.5

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

Important value levers for

capex optimization

Vis

ion

Syst

em

s, C

ap

abili

ties,

Pro

cess

es,

Tools

(1) Engineering (2) Procurement (3) Construction (4) Project mgmt.


5

Upcoming Key Projects Core Uplift 1-Step Adjacencies Emerging Business Models

Rapid Project: PC and PO Chains with Petronas in Malaysia, to

complete by 2016

To expand downstream product portfolio & build up HVS

strategic initiative

Total investment of US$1,760mm & PTTGC expects to

contribute 25% of the equity component

Signed HoA with Petronas and Itochu for the feasibility study

Under feasibility study , Basic Engineering Package & JV

Agreement phase

To access high demand growth downstream markets in Indonesia

Pertamina and PTTGC will co-develop the detailed feasibility study

for the Indonesian petrochemical complex.

Signed HoA in Apr 13 and target to sign JV agreement in Dec 13

Estimated investment is US$4bn, with D/E > 1 under project finance

Sinochem : JV partnership with

Sinochem International (SI)

16

To secure access to China downstream

market

Signed MoU to jointly explore potential

collaboration e.g., PU and PC chains and

Bio-based chemicals

17

1st Ranking

2nd Ranking

Final Ranking

• Inline with PTTGC Growth

Strategy

• Marketing network, Technology,

Feedstock Advantage, Focus

End Use Market, Key Country

• Investment Size

Criteria

• Economic Return

• Marking and business

attractiveness

• Ease of entry into business

• Company management capability

• Technology Competitive

advantage

• Project attractiveness, economic

return

• Risk and mitigation plan

• Environmental and social impact

• Portfolio fit

Target

Corporate ROIC

14%

Project IRR

>15%

Key Criteria of Investment Screening Process

2011 Target2017

Target2022

Operational Excellence, Marketing Excellence, Capital Expenditure Excellence

Continues to Strive for Strong Profitable Growth

18

Synergy Project Excellence

Debottleneck

563

HVS

Green

Sales in THB Bn

Phase 1: Foundation for Growth Phase 2: The Growth Mode

We aim to grow ~5 percent p.a. in the next ten years

HVS

Green

New Global Hub

Expected EBITDA Benefit

Uplift 15-30%

~ 620 - 650

Actual

2012

Based on constant Dubai crude year 2012 at USD 109 per bbl

~ 800 - 900

Agenda



Market Outlook


19

- PX price remains strong on the back of

limited feedstock supply (reformate) due

to T/A season of refineries in NEA, and

high cotton price.

- BZ price also constrained by limited

feedstock (Pygas) from lower run rate of

naphtha crackers in NEA - Ethylene price is seen as volatile following

crude prices. However, 1H13 price is

supported by downstream derivatives

demand (beverage & packaging) on the

back of summer season in EU and US

- HDPE price expected to improve from

previous year from improving demand

Key Trends for Petrochemical Market in 2013

20

World GDP revised to 3.3%, down from 3.5% in January

China’s economy grew at an annualized rate of 7.7% in 1Q, down from 7.9% in 4Q/12

- Crude oil prices expected to remain in the

range of 100-110 usd/bbl following

mixed economic sentiment.

*IMF, Apr 2013

- Phenol price will continue to be

pressured by supply/demand imbalance

with 800kton in 2013, and 1 Mton in

2014 coupled with rising feedstock cost

- Demand should however pick up in 2016

with less capacity addition

Agenda



Market Outlook


21

Key Financial Highlights YoY Stronger on volume driven

22

2011 2012 % YoY 4Q/2012

Revenue 500,305 562,811 12% 144,595

EBITDA 54,423 55,879 3% 16,281

Net Income 30,033 34,001 13% 10,389

EPS (THB/share) 6.7 7.5 13% 2.3

Adjusted EBITDA* 48,920 55,045 13% 16,312

Note* Exclude impact of inventory value and commodity hedging

Unit in THB million

48%

20%

21%

2% 3% 6%

Segmental Results – FY12 Olefins and Olefins Derivatives Business contributed greatly to EBITDA

23

204

141

105

11 16 23

270

114 116

13 16 33

Refinery Aromatics Olefins andDerivative

Green Phenol Others

FY11 FY12

6.6 4.7

29.6

0.8 3.1 4.1

8.2 8.8

31.6

0.8 1.0

4.6

Refinery Aromatics Olefins andDerivative

Green Phenol Others

FY11 FY12

Unit in THB billion Unit in THB billion

Adjusted EBITDA Margin by Core BU

Revenue Breakdown Adjusted EBITDA Breakdown

15%

16%

57%

2% 2%

8%

FY12 Revenue Breakdown (%) FY12 Adjusted EBITDA Breakdown (%)

Refinery Refinery

Aromatics

Aromatics Olefins

and

Derivatives

Phenol

Green

Green

Phenol Others Others

FY11 FY12

Refinery 3% 3%

Aromatics 3% 8%

Olefins and Derivatives 28% 27%

Phenol 20% 6%

THB

563 Bn

THB

55 Bn

Olefins

and

Derivatives

FCF for Inv. 7,428

FCF for Inv. 9,908

FCF for Inv. 5,992

FCF for Inv. 24,346 2,003

8,146

26,795

30,532

9,431

18,054

32,787

54,878

-

10,000

20,000

30,000

40,000

50,000

60,000

1Q/12 2Q/12 3Q/12 4Q/12

FCF for Inv.Debt Service and DividendCash from Operation

34.6

240.5

238.0

100.8 136.8

60.0 61.2

Strong Financial Position

24

• Free Cash Flow for Investment

• Key Financial Ratios • Dividend – Solid Payout Ratio

As of Dec 31, 2011 As of Dec 31, 2012

THB 436 Billion THB 373 Billion

Cash + ST Investment

CA

PPE

Non CA

Share

holders’

Equity

IBD

Liab.

• Balance Sheet

Dec 31, 11 Dec 31, 12 ROA 8.05% 7.80% ROE 14.41% 14.28% Net IBD / Equity 0.47 0.32 Net IBD / EBITDA 1.79 1.38

FY11 FY12

EPS (Baht/Share) 6.66 7.54

Dividend (Baht/Share) 2.98 3.40

Payout Ratio (%) 45% 45%

THB Million

32.4

235.3

208.5

82.6

120.2

22.6 44.3

2%

44% 54%

11.6 11.9

7.6 9.5

19.2

12.7

7.7

11.7

0.5

30.5

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

PTTGC PPCL Others

Diversified Debt Exposure and Repayment Schedule

25

Cost of long term debts ~ 5.0% (Include W/H Tax)

Average loan life after refinancing - 5.4 Years

Debt Profile as at Dec 31, 2012

Maturity of Financial Debt as at Dec 31, 2012

Debenture

ST Loan

LT Loan

63%

37%

THB

USD & Foreign

62%

38% Floated

Fixed

THB Billion

Agency Credit Rating

Moody’s Baa2

S&P BBB

Treasury policy Net IBD to Equity ratio of ≤ 0.7x

Net IBD to EBITDA ratio of ≤ 2.4x

4.0

-2.0

5.1

1.6

10.0

7.5

1.5 1.9 2.9

2.0

6.6

8.2

1Q/12 2Q/12 3Q/12 4Q/12 2011 2012

EBITDA Adjusted EBITDA

4Q/11 3Q/12 4Q/12 2011 2012 +/-

Market GRM 3.73 5.94 4.66 4.96 4.71 -5%

Hedging Gain/(Loss) -0.40 0.02 0.63 -0.73 0.35 -148%

Stock Gain/(Loss) Net NRV 1.7 2.51 -0.63 2.50 -0.30 -112%

Accounting GRM 5.03 8.47 4.66 6.73 4.76 -29%

YearQuarter

Refinery BU Performance Market GRM softened QoQ, YoY upon lower spreads, however, sales increased from plant’s smooth run

27

13% 13% 14% 14% 14%

46% 52% 50% 48% 50%

12% 9% 8% 11% 9%

28% 27% 28% 27% 27%

4Q/11 3Q/12 4Q/12 FY11 FY12

Total Production Volume in %

Ref+LN+Others

Jet

Diesel

Fuel Oil

149 147 146 131 146

36 55 55

31

51

103% 101% 101%

90%

100%

65%

70%

75%

80%

85%

90%

95%

100%

105%

0

50

100

150

200

250

4Q/11 3Q/12 4Q/12 FY11 FY12

Crude CR+Other feed CDU Rate

Total Intake in KBD CDU Rate

CR+Other

feed

Crude

58 mbbl 69 mbbl

Unit in THB bn

2011 2012

Dubai in 4Q/12 started at 109 usd/bbl and ended at 108 usd/bbl

4Q/11 3Q/12 4Q/12 2011 2012 +/-

Dubai crude 106 106 107 106 109 3%

ULG95-Dubai 10 16 14 14 15 7%

Jet-Dubai 18 20 19 19 18 -5%

Diesel-Dubai 17 19 18 18 17 -6%

FO-Dubai -2 -2 -9 -6 -4 -33%

Quarter Year

1.9 1.0

3.4 4.1

6.9

9.6

1.0 1.3 2.3

4.2 4.7

8.8

1Q/12 2Q/12 3Q/12 4Q/12 2011 2012

EBITDA Adjusted EBITDA

28

22% 23% 22% 24% 23%

13% 14% 14% 15% 14%

23% 25% 24% 22% 24%

42% 39% 40% 39% 39%

80%

90% 91% 88% 86%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

20%

40%

60%

80%

100%

120%

4Q/11 3Q/12 4Q/12 FY11 FY12

Total Production Volume in % Total intake in %

LN+Others

CR

BZ+CX PX+Xylene

group

Aromatics BU Performance Strong BZ spread and higher discount on condensate contributed to high margins YoY

84% 89% 84% 84% 86%

16% 11% 16% 16%

14%

0%

20%

40%

60%

80%

100%

120%

4Q/11 3Q/12 4Q/12 FY11 FY12

Reformate+

Other feed

Condensate

Unit in THB bn

2011 2012

4Q/11 3Q/12 4Q/12 2011 2012 +/-

Condensate 923 918 925 926 946 2%

PX FECP-Condensate 560 426 604 615 538 -13%

BZ SPOT KR-Condensate 74 259 431 160 261 63%

Naphtha-Condensate -26 -3 19 12 -3 -125%

Quarter Year

1,360 kton

255 kton

5,082 kton

829 kton

Import

39% Import

30%

4Q/11 3Q/12 4Q/12 2011 2012 +/-

P2F 121 243 387 181 257 42%

Hedging Gain/(Loss) 0 0 -5 0 -2 -900%

Stock Gain/(Loss) Net NRV 1 64 -2 35 13 -64%

Accounting P2F 122 307 380 216 268 24%

Quarter Year

29

92%

86% 89%

87% 87%

8% 14% 11% 13% 13%

75%

80%

85%

90%

95%

100%

105%

4Q11 3Q12 4Q12 FY11 FY12

Gas NaphthaTotal intake

7.2 7.7 8.3 8.4

29.6 31.6

1Q 2Q 3Q 4Q FY11 FY12

Olefins and Olefins Derivatives Adjusted EBITDA in THB bn

Olefins and Olefins Derivatives BU Performance Better performance YoY thanks to higher gas feed while prices were in mixed performance

Price and Spread in USD/ton

Sales Volume in Kton and Utilization Rates

*External sales

+/-Sale Volume

(K Ton)

Utilization

Rate

Sale Volume

(K Ton)

Utilization

Rate

Sale Volume

(K Ton)

Utilization

Rate

Sale Volume

(K Ton)

Utilization

Rate

Sale Volume

(K Ton)

Utilization

Rate

Sales

Volume

Olefins* 172 77% 188 91% 169 88% 737 80% 748 88% 2%

HDPE 181 85% 198 92% 203 100% 758 95% 778 99% 3%

LLDPE 117 113% 111 113% 117 111% 337 89% 396 100% 18%

LDPE 33 59% 96 113% 63 71% 158 56% 273 88% 72%

MEG 87 78% 91 93% 101 96% 279 65% 350 88% 26%

4Q/11 3Q/12 4Q/12 20122011

759 928 897 3,222 3,574

Unit: USD/Ton 4Q/11 3Q/12 4Q/12 2011 2012 +/-Naphtha 888 915 944 938 943 1%

HDPE 1,329 1,343 1,393 1,373 1,380 1%

HDPE-Naphtha 441 428 449 434 437 1%

LLDPE 1,217 1,341 1,399 1,339 1,354 1%

LLDEP-Naphtha 328 426 455 401 411 2%

LDPE 1,408 1,327 1,369 1,602 1,362 -15%

LDPE-Naphtha 520 412 425 664 419 -37%

MEG 1,362 1,065 1,247 1,314 1,179 -10%

MEG-0.65 Ethylene 672 285 411 542 379 -30%

81%

19%

Phenol Performance Weaker YoY from lower spreads and BPA unplanned shutdown

30

0.2 0.2 0.3 0.2

3.1

1.0

1Q 2Q 3Q 4Q FY11 FY12

Adjusted EBITDA in THB bn

Sales Volume in Kton and Utilization Rates

Phenol and BPA P2F in USD/ton

USD/Ton4Q/2011 3Q/2012 4Q/2012 2011 2012 YoY

Phenol-BZ 303 264 165 613 267 -57%

BPA-Phenol 241 212 189 384 205 -47%

Phenol and BPA Market Spread in USD/ton

P2F = PH + 0.62 AC – 0.872 BZ – 0.468 PY

P2F = BPA - 0.853 PH – 0.275 AC

YoY

4Q/11 3Q/12 4Q/12 2011 2012

Phenol Margin 378 401 366 721 435 -42%

BPA Margin 196 171 167 379 157 -56%

Quarter Year

Sales Portion of all Products in Quantity (%)

21 34 41

133 151

25 33 35

87

110

98%

128% 129%

114% 119%

73%

102%

83% 79% 74%

0%

20%

40%

60%

80%

100%

120%

140%

-

50

100

150

200

250

300

4Q/11 3Q/12 4Q/12 2011 2012

Phenol BPA Phenol U-Rate BPA U-Rate

Export

Domestic

Contract 76%

Spot 24%

Contract 86%

Spot 14%

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