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Analyst Meeting 2013

27 February 2014

The future begins now creating shared value

Disclaimer

This presentation material has been prepared solely for informational purposes only. IRPC is

furnishing it solely for use by prospective investors / analysts in the proposed event. IRPC makes no

representations or warranties as to the accuracy or completeness of such information. By accepting

this material each recipient agrees that IRPC shall not have any liability for any representations

(express or implied) contained in, or for any omissions from this presentation.

The information contained herein does not purport to be all-inclusive or to contain all of the

information that may be material to the recipient’s decision. Each recipient of the information and data

contained herein should perform its own independent investigation and analysis of the transaction

and the creditworthiness of IRPC . Reference in this Disclaimer to this shall include references to the Appendices (if any) hereto.

2

I. 2013 Highlights

II. Operation & Financial Performance

III. Industry Outlook

IV. Strategic Direction

V. Appendix

Agenda

3

6.7 6.5 5.8 7.0

4Q12 4Q13 2012 2013

107 107 109 106

66,418 74,769

283,668 282,649

4Q12 4Q13 2012 2013

2013 Overview

Overview of Business

146,261

136,114

Net Sales & Net Profit Unit: MB

Net Sales Net Profit

* Restated

(2,481) (1,006)

1H12* 1H13

1. In 2013, average Dubai price dropped to

$106/bbl from $109/bbl in 2012 largely

influenced by US budget and debt ceiling

battle, Shale Oil production, and easing of

geopolitical tensions.

2. Net sales were 282,649 MB, slightly

declining from 2012, by 0.4%, due to a

decrease of 6.7% in the product prices and

an increase of 6.3% in the sales volume.

3. The Market GIM was $7.0/bbl increasing

from $5.8/bbl in 2012 caused by the use of

domestic crude and better petrochemical

product spreads.

The Accounting GIM in 2013 rose to

$8.4/bbl from $6.3/bbl in 2012.

4. Net profit was 826 MB in 2013, compared to

net losses of 777 MB in 2012.

Revenue

(net Excise)

Dubai

Unit: USD/BBL

13%

0.4%

Market GIM

3%

(30)

784

(777)

826

4Q12 4Q13 2012 2013

Net Income

2,713% 206%

Unit:USD/BBL

Unit: MB

Unit: MB

21%

Accounting GIM

Unit: USD/BBL

27% 33%

7.0 8.9

6.3 8.4

4Q12 4Q13 2012 2013

4

1. As of 31 December 2013, 59% overall progress of Phoenix

Projects

2. UHV: 52%; Construction phase started; COD expected in

3Q15

2013 Highlights

Projects High Value Product HDPE

Asset Utilization Enhancement

UHV Project Progress: 52% Under construction,

piling and foundation

Rx/Rg structure foundation Concrete Pedestal work

Concrete Foundation

work

U/G piping installation

work Control room building

Wang Chan district,

Rayong province

3,312 Rai

Wang Chan

5

1. In November 2013, ~ 3,312 Rai of land located in Wang Chan

district, Rayong province was sold for 596 MB.

2. In December 2013, 51% of total share in IRPC Clean Power

Company Limited was purchased by Global Power Synergy

Company Limited for 709 MB.

https://www.google.co.th/url?url=http://www.fnlp.fr/spip.php?article558&rct=j&sa=U&ei=aBz9Us_HA4exrgfd9YGoAQ&ved=0CC4Q9QEwAA&q=signer&usg=AFQjCNGtv9gKwSto7sTF0mNamgXApfK5VA

Outstanding Achievement in 2013

Operation

Marketing

• Continuously implemented Zero Unplanned Shutdown” &“Operational

Excellence” program with collaboration in PTT Group

• Increased plants efficiency & no serious injures throughout the year 2013

• Developed BHD, a premium-grade bio-diesel

• Installed Mercury Removal Unit, enable IRPC to process higher mercury crude

• Managed Hydrocarbon Loss: Save 594 MB per year from hydrocarbon loss

dropping from 0.86% to 0.53%

• Expanded “IRON System” to more than 80% of customers to improve

customer ordering system

• Collaborated with financial institutions to implement “E-Supply Chain”,

reducing risk of payment error from customers

• Penetrated into ASEAN market to get ready for AEC

• Increased sales to ASEAN countries from 15% in 2012 to 20% in 2013

6

Outstanding Achievement in 2013

Investment

Innovation

• Multi Product Pipeline (Diesel 10KBD, Jet 15KBD) between PTTGC and

IRPC allowed the two companies to exchange streams to create more synergy.

• EBSM Upgrading for ABS Specialties project increased production capacity of

styrene monomer (SM) from 200 KTA to 260 KTA.

• Oil Depot and Lube Blending expansion increased lube blending capacity

from 1 million litres/month to 6 million litres/month.

• More than 160 of innovation works in 2013. Here is just few examples of our

unlimited creativities.

1) PE Compound for “Geo-membrane”

2) PP for High Speed Raffia

3) PP Compound for Synthetic Rattan Fire

Retardant

4) Low Gas Emission Reinforcement PP

5) Halogen Free HIPS/PP for Electronic

Application

6) Polyethylene Catalyst Development

7) Wood Plastic Composite (WPC)

8) Advanced HA2PO Catalyst for Ultra High Molecular

Weight Polyethylene (UHMWPE) Production

9) Anti-dripping genX (non PFOA) graft latex

10) High gloss stability by using EBS in HG730 to

increase process ability and gloss stability

11) High stiffness and high clarify PP Extrusion PP 1150H

12) High flow high clarify Random Polypropylene 3342S

7

I. 2013 Highlights




V. Appendix

Agenda

8

0

20

40

60

80

100

120

140

160

180

200

$/BBL

Dubai

ULG 95

GAS OIL 0.05%

FUEL OIL

Mixed Performance of Petroleum Spread

Source: Platts, IRPC Analysis Team

Note: Starting Jan-13 onward Gas oil 0.05%s is used instead of Gas oil 0.5%s.

For comparison purpose, historical data is re-stated based on Gas oil 0.05%

• Crude oil price was relatively elevated in 4Q13 supported

by decline in the US crude inventory, extended political

turmoil, but faced downward pressure from QE3 tapering.

• ULG spread declined because of weaker demand from

Indonesia and Vietnam, and an increase in the supply

from refineries in Taiwan and China.

• Gasoil spread rose from the previous quarter due to a

rise in the seasonal demand from Asia, ME and Africa

combined with a decline in the exports from India due to

the unplanned shutdown.

• FO spread remained unfavorable since the demand from

marine logistic sector continued to be weak.

Mar’12

106 106 116 AVG.

Dubai

Price.

1

10

7 10

Mar’13 Dec’11

1Q12 2Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Jun’12

Dubai

Sep’12

106

3Q12

0.04

Dec’12

107 107 108

Jun’13

101 0.5

Sep’13

0.7 5

Dec’13

14.3 14.0 15.9 13.4

18.4 14.6 12.4

9.2 14.4 13.7

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y13

18.1 17.6 21.2 19.4 19.6

16.8 17.3 17.7 19.1 17.9

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y13

(0.5) (1.3) (2.4)

(9.0) (7.3)

(3.6)

(10.7) (10.4)

(3.3)

(8.0)

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y'13

$/BBL

$/BBL

$/BBL Gasoil-DB

HSFO-DB

ULG95-DB

9

Sliding Lube Base Oil Spreads

Source: Platts, ICIS, IRPC Analysis Team

• Lube base oil spread was stable as the demand was

seasonally sluggish towards the end of year. Moreover, there

was an increase in the export of from Russia to Asia.

• Asphalt spread declined significantly because of a demand

decrease from Indonesia, Malaysia, and Vietnam.

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13

$/TON FO 180 3.5%S 500SN 150BS Asphalt

1Q12 2Q12 4Q12 2Q13 4Q13 4Q11 3Q12 1Q13 3Q13

500 621

497 460 421 494 518 509 519 486

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y13

$/TON 500SN – FO 180 3.5%S Spread

(99)

(32) (40)

15 (19)

(7) (3) (27)

(39)

(14)

1Q12 2Q 3Q Q4 1Q13 2Q 3Q 4Q Y12 Y13

$/TON Asphalt – FO 180 3.5%S Spread

10

0.7 1.0 2.0

0.2 0.3 0.5 0.9

2.0 1.4

1.5

1.4 1.2 2.0 1.4

2.7 2.4 3.5

1.6 1.6

2.5 2.3

4Q12 1Q13 2Q 3Q 4Q Y12 Y13

$/BBL Market GRM

Lube Base

Refinery

Weaker Aromatics Spread


• Toluene spread weakened as the demand from gasoline blending remained weak. Moreover, the demand for toluene as a

feedstock in China and India also dropped.

• Mixed-xylene significantly deteriorated due to a decrease in the demand for polyester, thereby adversely affecting the

demand for paraxylene and mixed-xylene.

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500


$/TON Naphtha Benzene Toluene Mixed Xylene

1Q12 2Q12 4Q12 1Q13 2Q13 4Q13 4Q11

161 222

269

420 426 428

336 338 268

382

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y13

$/TON

178 219 217

335 305 260

205 192 237 241

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y13

$/TON

316 261

326

385 366 334 349

269 322 329

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y13

$/TON

Benzene – Naphtha Spread

3Q12 3Q13

Toluene – Naphtha Spread MX – Naphtha Spread

11

Rising Olefin Spread


• Polyolefin spreads were solid. The prices of HDPE and PP continued to surge on cost push pressure. Moreover, supply

from ME to Asia decreased due to disrupted production.

500

700

900

1,100

1,300

1,500

1,700


$/TON Naphtha Ethylene Propylene HDPE PP

1Q12 2Q12 4Q12 2Q13 4Q13 4Q11

230 291 285 341 434 405 397 480 287 429

145 203 143 107

87 179 171

110

149

137 374 494

428 449 521

585 568 590

436

566

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y13

$/TON

HDPE-Ethylene –Naphtha Spread

3Q12

HDPE-Ethylene

Ethylene - NP

1Q13

261 391 342 303 345 439 412 420 324 404

147 161 187 216

236 175 184 177 178

193 408 551 529 519

581 614 596 597

502

597

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y13

$/TON

PP-Propylene

Propylene - NP

3Q13

12

PP-Propylene –Naphtha Spread

Declining Styrenics Spread


• PS spread retreated since PS price declined in line with the styrene monomer, driven by SM plants returning from unplanned

shutdown. Moreover, the PS demand also declined seasonally.

• ABS spread fell because of a drop in the ABS price, which was in turn caused by its weak demand, while naphtha price rose.

500

700

900

1,100

1,300

1,500

1,700

1,900

2,100

2,300

2,500


$/TON Naphtha SM ABS PS

1Q12 2Q12 4Q12 1Q13 2Q13 4Q13 4Q11 3Q12 3Q13

543 636 664 771 922 976 995 891 653

946

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y13

$/TON

1,058 1,081

1,039 995 1,051 1,057 1,015 960 1,043 1,021

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y13

$/TON

PS –Naphtha Spread

428 516 541 692 773 851 895 759

544 820

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q Y12 Y13

$/TON

SM - Naphtha Spread ABS –Naphtha Spread

13

124 133 168 123 125 82

136

122 151 141

132 135

98

140

138 158 176

142 146 102

155

4Q12 1Q13 2Q 3Q 4Q Y12 Y13

$/TON Aromatic &Styrenics

Olefins

Market PTF

Petr

och

em

ical

Petr

ole

um

• Crude intake rose to 181 KBD, up 3%.

• Domestic crude intake amounted to 10 KBD or 6%.

• Lube utilization rate was 90%, down 3% due to

maintenance shutdown in 2Q13.

• Aromatic utilization rate was 86%, up 7%.

• Styrenic utilization rate was 87%, down 5% because

of a shutdown in the EBSM unit due to tie-in of

expanded plant facility in 3Q13.

Increased Domestic Crude Intake

Crude Intake

74% 72% 66% 70% 66% 63% 67% 67% 70% 66%

26% 28% 34% 30% 31% 33% 28% 22% 30%

29%

1% 4% 5% 11% 6%

184 171 178 168 183 189 179 174 175 181

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q 2012 2013

Domestic Crude Sweet Crude Sour CrudeUnit: KBD

16.8 15.6 16.4 15.5 16.4 17.2 16.5 16.0 64.2 66.1

101%

88%

97% 102%

107%

100% 107%

111%

97% 107%

83%

63%

85% 89%

85%

89%

78%

89% 80% 86%

98% 89%

88% 93% 92%

78%

81%

95% 92%

87%

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q 2012 2013

Olefins Aromatic Styrenic

86%

80% 83%

78%

85%

88%

83% 81% 82%

84%

87%

93%

97%

92%

88%

83%

95% 92%

93%

90%

1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q 2012 2013

Refinery Lube

Unit: Mbbl

Utilization

14

54% 65% 58% 58% 62% 59% 61%

46% 35% 42% 42% 38% 41% 39%

13.7 14.2 15.3 57.6

4Q12 1Q13 2Q 3Q 4Q 2012 2013

Sales Qty

Export

Domestic

14.9 14.8 59.2

64% 60% 63% 62% 55%

64% 60%

36% 40% 37% 38% 45% 36% 40%

323 345 311 344 373 1,283

4Q12 1Q13 2Q 3Q 4Q 2012 2013

Sales Qty

Export

Domestic

1,372

86% 84% 86% 84% 83% 87% 84%

14% 16% 14% 16% 17% 13% 16%

15.8 17.1 17.7 17.6 17.8 66.1 70.2

4Q12 1Q13 2Q 3Q 4Q 2012 2013

Petrochem

Petroleum

Focus on Domestic Market

Petr

ole

um

Petr

och

em

ical

Singapore, 60%

Malaysia, 18%

Laos, 7%

Myanmar, 6%

China, 6%

Europe, 2%

Asia, 2% America,

1%

China, 46%

Singapore, 9%

Japan, 4%

Asia, 11%

Turkey, 8%

Europe,10% (German3% France3%, Others4%)

Australia, 4%

Middle East, 2%

America, 2%

Africa, 3%

Y2011

Unit: Mbbl

Unit: KTon

China, 39%

Singapore, 22%

Japan, 6%

Asia, 12%

Turkey, 4%

Europe,10% Middle

East, 4%

Others, 7%

Petroleum Petrochemical

Petroleum Petrochemical 9M12

Unit: Mbbl

68% 68% 67% 65% 65% 68% 65%

32% 32% 33% 35% 35% 32% 35%

2Q12 3Q 4Q 1Q13 2Q 1H12 1H13

High Value

Commodity

Polymer Marketing Mix Towards High Value Product

1H13: Lower domestic sales proportion QoQ due to PTTGC’s

shutdown but high proportion of domestic expected to recover in

2H13

15

China, 32%

Asia Ex China, 59%

Europe, 4%

Australia, 3%

America, 1%

Others, 1%

Singapore,

51%

Asia Ex

Singapore,

48%

Others,

1%

Export by Destination

Petroleum

85%

Sales Volume Structure

Domestic

61%

Export

39%

2013 Sale volume

70.2 Mbbl

Petrochemical

15%

46% 46% 50% 43% 46%

40% 41% 37%

42% 40%

14% 13%

13%

15% 14%

6.9 7.3

7.8

6.6 7.3

4Q12 1Q13 2Q 3Q 4Q

40% 39% 44% 38% 41%

36% 37% 33% 37% 34%

24% 24% 24% 25% 25%

27,764 28,497 29,476 28,223 31,397

4Q12 1Q13 2Q 3Q 4Q

QoQ 10%

YoY 6%

QoQ 11%

YoY 13%

38 35

40

34 36

4Q12 1Q13 2Q 3Q 4Q

Inventory Day (Days)

111 109 102 112 109

117 120

105 118 112

227 242

220 234 236

130 131 118

132 128

4Q12 1Q13 2Q 3Q 4Q

Unit Price ($/bbl)

Maintain Efficient Inventory Turnover in 2013

Value (MB)

Volume (Mbbl)

Petrochem

Petroleum

Crude

Petrochem

Petroleum

Crude

Total

*End-month unit price

*

16

GIM in 2013

2Q12 3Q12 4Q12 1Q13 2Q13

2.97 3.08 3.12 3.88

3.09 3.09 2.77 2.93

1.03 0.88 0.97 1.02

7.09 7.05 6.86 7.83

30 Jun 12 30 Sep 12 31-Dec-12 31-Mar-13 30-Jun-13

98.3 112.7 111.2 101.8

115.0 114.8 116.7 105.0

223.9 220.7 226.7 220.6

126.1 127.4 129.8 118.4

6.7 7.4 8.0 6.0 6.5 5.8 7.0

(0.3) (1.0) (1.0)

4.0 0.1 0.5

0.6 0.7 0.6 0.02

0.4

2.3

(0.03)

0.8 7.0 7.1 7.1

10.4 8.9

6.3

8.4

4Q12 1Q13 2Q 3Q 4Q 2012 2013

Market GIM Stock G/(L) net LCM Hedging

Accounting GIM

8.5 9.8

7.0

11.0

6.3

0

5

10

15

A/C GIM

2.7 2.4 3.5

1.6 1.6 2.5 2.3

3.3 4.0 3.8

3.3 4.1 2.3 3.8

0.6 1.0 0.8

1.1 0.8 1.0

0.9 6.7 7.4 8.0

6.0 6.5 5.8 7.0

78% 85% 88% 83% 81% 82% 84%

4Q12 1Q13 2Q 3Q 4Q 2012 2013

Power & Utility Petrochemical Petroleum

Market GIM

Utilization rate

Unit: $/bbl

Unit: $/bbl

• In 2013, the Market GIM was

$7.0/bbl or 14,206 MB increasing

from $5.8/bbl or 11,699 MB in

2012.

• An increase in the Market GIM

was mainly driven by better

spread of petrochemical products.

• Compared to 2012, the

Accounting GIM rose by $2.1/bbl

or 4,563 MB.

• Hedging gains of $0.8/bbl in 2013

compared to hedging losses of

$0.03/bbl in 2012.

• 4Q13 hedging at maximum

volumes of 50% contributing to

FY13 hedging volume at 31% of

production.

17

Financial Highlight

4Q13 4Q12* Change 2013 2012* Change

Foriegn Exchange Rate 31.87 30.82 3% 30.86 31.22 -1%

Net Sales 74,769 66,418 13% 282,649 283,668 -0.4%

Market GIM 3,302 3,202 3% 14,206 11,699 21%

Stock Gain/(Loss) 73 (159) 146% 1,180 900 31%

Oil Hedging Gain/(Loss) 1,188 309 284% 1,721 (55) 3,229%

Accounting GIM 4,563 3,352 36% 17,107 12,544 36%

OPEX (3,307) (3,179) 4% (11,599) (10,252) 13%

Other Income 1,140 715 59% 1,981 1,833 8%

EBITDA 2,396 888 170% 7,489 4,125 82%

Gain/(Loss) from Fx (597) 79 -856% (909) 386 -335%

Gain/(Loss) from Impairment 313 443 -29% 321 541 -41%

Investment Gain/(Loss) 401 22 1,723% 407 271 50%

Net Profit 784 (30) 2,713% 826 (777) 206%

Unit: MB

Quarter Year

* Restated from effective TAS 12 Income Taxes

18

4Q13 Debt Portfolio

Float 33 THB 41

Fixed 67 USD 59

Currency (%) Interest Rate (%)

Net Debt = 37,907 MB

USD/THB = 32.95

Debt Structure As of December 31, 2013

ST Loan 148

LT Loan 15,426

Bond (USD) 7,827

Bond (THB) 19,630

Total 43,031

Debt (MB)

ST Loan 0.3% LT

Loan 36%

Bond (USD) 18%

Bond (THB) 46%

2.46

1.34 1.29

4Q12 3Q13 4Q13

> 1.05x 0.49 0.48 0.50

4Q12* 3Q13 4Q13

*4Q12 Change Effect from Deferred Tax

< 1.0x

Net D/E CA/CL

Unit: MB

43,969 43,294 42,883

238 360 148

44,207 43,654 43,031

6,524 7,580 5,124

4Q12 3Q13 4Q13

Long term Short term

Cash & S/T investment Net Debt

37,683 36,074 37,907

4Q12 3Q13 4Q13 Y12 Y13

Cost of Debt 4.20% 4.04% 4.12% 4.45% 4.09%

“Ba1” Negative outlook

Credit Ratings

“BB+” Stable outlook

“A- (tha)” Negative outlook

Debt Profile

Financial Ratios

19

Cash Flow Projection

(13,238)

(30,060)

(7,966)

5,328

(5,482) (2,110)

2013A 2014F 2015F 2016F 2017F 2018F 2014 - 18

33 196 1,211 1,850 2,116 1,958 2,221 2,422 2,888 2,976 2,882 2,594 1,635

2,043 1,066 1,921 2,240 2,153 2,000

9,000 7,685 3,370

13,519 11,033 14,838

26,188

10,231

3,793

2,889

2,699 CAPEX

Loan Repayment

Dividend

Financial Expenses

Income Tax

20,727

39,849

23,080

13,910

23,645 20,437 Use of Cash

Shortfall

120,920

(40,290)

45,799

44,606

9,423

13,762

7,330

20

I. 2013 Highlights




V. Appendix

Agenda

21

Crude Oil and Petroleum Products Outlook

Key Products Price

(2013)

Spread

(2013)

2014 Outlook

Refinery ($/bbl) ($/bbl)

Dubai 106

ULG95 119.2 13.7

GAS OIL 0.05% 123.4 17.9

FO 97.5 (8.0)

Lube Base Oil ($/T) ($/T)

500 SN 1,105 486

150 BS 1,191 572

• Global oil demand grows by 1.31

MBD but supply disruption in ME

may be eased but by no means

certain. The crude oil price is

expected to be above $100 per

barrel.

• Slightly Petroleum product cracks

improve, led by middle distillate

and fuel oil driven by the demand

from transportation activities.

• Stable lube base oil market is

expected in 2014 as the

additional supply will be

alleviated by scheduled

shutdown throughout the year.

Company Capacity

(KT/Year) Timing

ADNOC 100 H1 2014

Chevron 1,200 Q1 2014

Sinopec 240 Mar-14

SK Lubricant 660 H2 2014

2014 Shutdown Schedule

Driving Determinants

22

Petrochemical Products Outlook

23

Key Products Price

(2013)

Spread

(2013)

2014 Outlook

Olefins ($/T) ($/T)

Ethylene 1,351 429

HDPE 1,487 566

Propylene 1,325 404

PP 1,518 597

Styrenics ($/T) ($/T)

PS 1,868 946

ABS 1,942 1,021

• There is optimistic outlook for PE.

Demand growth continues while

at the same time tight supply is

expected caused by heavy

scheduled turnaround this year.

• Propylene supply is expected to be

tight. The price is expected to be

elevated since supply from on-

purpose propylene is costly.

• High PS price is expected. Global

demand outpaces supply growth.

• Improving market for ABS, as the

economic recovery in EU and US

will increase the demand of

automobile and electronics.

Driving Determinants

23

I. 2013 Highlights




V. Appendix

Agenda

24

Strategic Initiatives: Overview

Delta: 2014 Onwards

▪ Margin Improvement Initiatives

– Operational Excellence

– Commercial Excellence

– HR Excellence

▪ Acceleration of Assets

Utilization

– EIZ

– Bankai

– Dry port

▪ Domestic crude use up to

35,000 Barrel per day

Post-Phoenix: 2015 Onwards

▪ Adding up more value to

petrochemical feedstock from

UHV project

▪ Shifting product portfolio to be

specialty player through PTT

Group Partnership strategy

– PP compound

– Polyol

– AA/ SAP

– PX

– SM

Phoenix + : 2010 Onwards

▪ Transformation to support high

value added product growth

– CHP I

– PRP

– EBSM

– UHV

▪ Quick specialty capacity

expansion/ Grade shifts

– TDAE

– ABS6/SAN3

– HDPE-Pipe Grade

– UHMWPE

3

Structural Changes for

Specialty Growth

Quick Win Initiatives

for Cost Reduction

Margin Enhancement

Specialty Growth and

Move away from

heavy - asset company by

investing through JV

1 2

25

Post-Phoenix Specialty Growth through JV

Delta Margin Improvement Initiatives

Phoenix + Structural Changes for Specialty Growth

Product Yield

23%

8%

14%

10%

40%

38%

5%

10%

16%

21%

2%

5%

6%

2%

0%

20%

40%

60%

80%

100%

IRPC IRPC+UHV

Ethylene

Propylene

LPG

Naphtha +Reformate

Gasoline

Diesel/ JetFuel

Lube Oil

Fuel Oil

Market GIM ($/BBL)

Benefit

Progress 52%

UHV Project

as of Dec 2013

5.8 7.0

0369

1215

BAU Stock G/(L) Dom.Crude UHV Delta Prog.

2012A 2013A 2014B 2015B 2016B 2017B 2018B

$/bbl

1.3 2.3 2.2 2.1

6.3 8.0

9.6 12.1

13.9 12.9 13.1

0

3

6

9

12

15

BAU Stock G/(L) Dom.Crude UHV Delta Prog.

Strategic Initiatives: UHV

26

• Increase propylene yield 320 KTA

• Heavy and cheaper crude processing

• COD : 3Q15

Strategic Initiatives: Delta




Delta is a strategic enabler for IRPC to meet 2020 vision

Three pillars of the Delta program:

Operational, Commercial &

Human Resource Excellence

Organisation

DELTA

HR EXcellence

Results delivery

OEMS Framework

Continuous improvement

RD

O

Achieving EXCELLENCE

across all 3 strategic pillars will

ensure that IRPC will meet its

vision by 2020

27


Organisation

DELTA

HR EXcellence

PTT Group Operational Excellence

Management System (OEMS)

Embedment

Value Chain Management – LP

Upgrading, Production Planning &

Schedule Optimization

Yield Process & Energy Optimization

Utility System Optimization

Reliability & Asset Integrity

improvement

QSHE

Marketing & Sales Excellence

Procurement Excellence

Price Volatility Management

Accounting & Financial Excellence

Talent Management

Career Path Development

Succession Plan

HR EXcellence




28




1 2 3


29

Strategic Initiatives: Post-Phoenix



UHV 320 KTA

HDPE Pipe 120 KTA

UHMWPE 16 KTA

ACB 4 KTA

CC & C

PP Expansion +160 KTA

PX

SM 350 KTA

PPC 120 KTA

Polyol 100 KTA

AA/ SAP

BHD +2 mil.L/M

2014 2015 2016 2017 2018

AA 100KTA, SAP 80KTA

PX 1,214 KTA BZ 372 KTA

2.8 – 5.6 KTA

Ph

oen

ix +

P

ost

Ph

oen

ix

On-going & Approved Project

Study Project

65,000 MB

38,400

MB


30

2014

• DELTA Initiative Implementation

• Domestic crude usage up to 35KBD

• Assets Management (Bankai/EIZ)

2015

• Increase product value by converting

fuel oil to petrochemical products

• Running at full capacity of 215 KBD

Para-Xylene

(PX)

Acrylic Acid

(AA)

Super Absorbent

Polymer

(SAP)

PP

Compound

New investments through JV

• Specialty focus and Moving away

from heavy-asset company

• CHP I: Electricity +220MW, Steam +430T/h

• PRP +100KTA of Propylene

• EURO IV: Gasoline 15KBD, Diesel 10KBD, Jet 15KBD

• TDAE +28KTA, 150BS +25KTA

• Lube Blending +60m.Ltrs./year

• EBSM +60KTA, ABS/SAN +60KTA

2013

Quick Win Initiatives

Completed Project during 2011-13

UHV Completion

2013 Crude Run 181 KBD

Nelson Complexity Index

Portfolio of Revenue:

Petroleum/Petrochemical & Others

3

2

2015 Crude Run 215 KBD

Nelson Complexity Index

More stable portfolio of Revenue:

Petroleum/Petrochemical & Others

76% / 24%

59% / 41% 6.6

8.6 84%

100%

1

Strategic Initiatives: Post-Phoenix

31

Thank You

Investor Relations Contact: [email protected]

Tel. 02-649-7380, Fax. 02-649-7379

Presentation is available at

www.irpc.co.th

Click “Presentations”

This presentation material has been prepared solely for informational purposes only. IRPC is furnishing it solely for use by prospective investors / analysts in

the proposed event. IRPC makes no representations or warranties as to the accuracy or completeness of such information. By accepting this material each

recipient agrees that IRPC shall not have any liability for any representations (express or implied) contained in, or for any omissions from this presentation.

The information contained herein does not purport to be all-inclusive or to contain all of the Information that may be material to the recipient’s decision. Each

recipient of the information and data contained herein should perform its own independent investigation and analysis of the transaction and the creditworthiness of IRPC . Reference in this Disclaimer to this shall include references to the Appendices (if any) hereto.

mailto:[email protected]

http://www.irpc.co.th/

I. 2013 Highlights




V. Appendix

33

Agenda

Phoenix Initiatives & Roadmap

Capacity & Products

Expansion

Capacity & Product

Expansion

Operational Efficiency

Improvement Asset Utilization

Enhancement

Product & Services

Improvement

Petrochem Petroleum Port & Tank Real Estate & Services

6. Supply Chain Optimization

(Griffin and Trading)

3. Ethylene Specialty

Development

7. Lube Group 1 Specialty

Products Focus

12. I'M ACE: IRPC Service

Solutions

1. Petrochem Operation &

Energy Efficiency

5. Petroleum Operation &

Energy Efficiency

9 . New Value Added for Port

and Tank Business 2. Capacity Development for

Propylene Growth

11. Build and sustain land for

green industrial

complex

4. EBSM Upgrading for ABS

Specialty

14. Performance Chemical

Business Development

Project

8. Petroleum quality

improvement to clean fuel

and green growth

development

13. Petrochem Catalyst

Commercialization

15. Utilities for

Sustainability

16: Oil Depot and Lube

Blending Business

Improvement

17: Analytical Lab

19: Hydrocarbon Management

20: Intellectual Property

Stewardship

34

35

Additional Capacity in Phoenix Projects

Sep.

+60 KTA

2012 2013 2014 2015

EBSM

Upgrading for

ABS

Lube Group1

Petroleum

Quality

Improvement

SM

200/260 KTA

TDAE 22/50 KTA

150BS 95/120 KTA

EURO IV

Gasoline 15KBD

Diesel 10KBD

Kerosene 15KBD

Project Total Capacity

Old/New

Oct.

Propylene

+100 KTA

Sep.

Propylene

+320 KTA

PRP+ Propylene

Growth (UHV) Propylene

312/732 KTA

SAN3/ABS6 Apr.

+60 KTA

ABS/SAN

117/177 KTA

Sep.

TDAE +28 KTA

150BS +25 KTA

Feb.

GHU 15 KBD

Mar.

Co-Invest

Diesel 10KBD

Kerosene 15KBD

Refinery & Lube

ADU

Lube Base

Asphalt

Products 2011 2012 2013 2014 2015 2016

CDU 215 KBD 215 KBD

150BS 95 KTA 120 KTA

TDAE 22 KTA 50 KTA

Lube Group 1 Specialty Products:

Increase high value added lube specialty products: TDAE & Bright Stock

+28 KTA

Petroleum Quality Improvement to Clean Fuel & Green Growth Development:

Upgrading HSD / Gasoline to be EURO IV standard

Products 2011 2012 2013 2014 2015 2016

Gasoline 75 M.Ltrs 75 M.Ltrs

Diesel 180 M.Ltrs 180 M.Ltrs

50 KTA

Phoenix by Business Unit

120 KTA +25 KTA

36

Initiative

7

Initiative

8

Olefins Products 2011 2012 2013 2014 2015 2016

Ethylene 360 KTA 433 KTA

Propylene 312 KTA 732 KTA

Butadiene 56 KTA 56 KTA

Acetylene 4 KTA 4 KTA

Upstream Project for Hygiene & Value Added Products (UHV):

Upgrading low value product (HS-ATB) to be high value added product for petrochemical feedstock:

Propylene 320 KTA, Ethylene 73 KTA, and Heavy Aromatic Naphtha 250 KTA, etc.

+320 KTA +100 KTA

+73 KTA

412 KTA 732 KTA

433 KTA

Products 2011 2012 2013 2014 2015 2016

PP 475 KTA 475 KTA

HDPE 140 KTA 140 KTA

Ethylene Specialty Development High Value Added Product of HDPE Specialty & PE Wax .

Phoenix by Business Unit (Con’t)

Polyolefins

37

Initiative

2

Initiative

3

Products 2011 2012 2013 2014 2015 2016

Benzene 114 KTA 114 KTA

Toluene 132 KTA 132 KTA

Mixed Xylene 121 KTA 121 KTA

Products 2011 2012 2013 2014 2015 2016

SM 200 KTA 260 KTA

ABS/SAN 117 KTA 177 KTA

PS 100 KTA 100 KTA

EPS 30 KTA 30 KTA

+60 KTA

Performance Chemical Business Development Project:

Increase 60 KTA EBSM for feeding ABS specialty.

To satisfy local demand for ABS/SAN expansion and to produce Nano additive.

260 KTA

Styrene

+60 KTA

177 KTA

ABS/SAN Expansion 6

Increase ABS/SAN from 117 KTA to 177 KTA to support ABS specialties production and Nano

additive production.

Phoenix by Business Unit (Con’t)

Aromatics

38

Initiative

4

Project Description: Upgrading bottom refinery product to high value added for Petrochem feedstock

Capacity Expansion: Increase propylene from 412 KTA to 732 KTA.

Progress : 52%*, now Under construction, piling and foundation.

1. EIA approved in Jan 13 2. MC: 1Q15 3. COD: 3Q15

412 KTA

Existing Propylene

320

KTA

UHV 732

KTA

Total Propylene

39

Concrete Pedestal work Concrete Foundation work

Control room building U/G piping installation

work

Rx/Rg structure foundation

Concrete pre-casting pipe

rack

*As of 31 December 2013

Phoenix Project: #2 UHV

After completion of UHV

• Running at full capacity of 215 KBD

• Propylene 320 KTA

• Light Distillate yield

• Crude Selection Flexibility

Sweet : Sour = 30:70 20:80

40

Benefits of UHV Project

Production Yield

0%

20%

40%

60%

80%

100%

Current Run +40 KBD Crude Run with UHV

20%

43%

8%

11%

10%

35%

35%

38%

11%

10%

19% 20%

21%

4% 2%

5% 6% 2% Ethylene

Propylene

LPG

Naphtha

Gasoline

Diesel/Jet

Lube Base

FO

09 10 11 12 13 14 15 16

Other Projects

Phoenix

BAU

Market GIM

GIM up 50%

Other projects consist of CHP, PRP and ABS6/SAN3

Currently running at full capacity is not optimal.

at 175 KBD (As of 2012)

Phoenix Project: #3 Ethylene Specialty Development

Commodity Product

HDPE

High Value Product

HDPE

Project Description: High Value Added Product of HDPE Specialty & PE Wax

Expected EBIT: USD 5 million/year

Progress: 83%* Under Construction

1. HDU I: Completed

2. HDU II & Convert Plant: Completion in 1Q14

41 *As of 31 December 2013

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