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
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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.
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
II. Operation & Financial Performance
III. Industry Outlook
IV. Strategic Direction
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
Source: Platts, ICIS, IRPC Analysis Team
• 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
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13
$/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
Source: Platts, ICIS, IRPC Analysis Team
• 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
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13
$/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
Source: Platts, ICIS, IRPC Analysis Team
• 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
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13
$/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
II. Operation & Financial Performance
III. Industry Outlook
IV. Strategic Direction
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) ($/T)
PS 1,868 946
ABS 1,942 1,021
• There is optimistic outlook for PE.
Demand growth continues while
at the same time tight supply is
expected caused by heavy
scheduled turnaround this year.
• Propylene supply is expected to be
tight. The price is expected to be
elevated since supply from on-
purpose propylene is costly.
• High PS price is expected. Global
demand outpaces supply growth.
• Improving market for ABS, as the
economic recovery in EU and US
will increase the demand of
automobile and electronics.
Driving Determinants
23
I. 2013 Highlights
II. Operation & Financial Performance
III. Industry Outlook
IV. Strategic Direction
V. Appendix
Agenda
24
Strategic Initiatives: Overview
Delta: 2014 Onwards
▪ Margin Improvement Initiatives
– Operational Excellence
– Commercial Excellence
– HR Excellence
▪ Acceleration of Assets
Utilization
– EIZ
– Bankai
– Dry port
▪ Domestic crude use up to
35,000 Barrel per day
Post-Phoenix: 2015 Onwards
▪ Adding up more value to
petrochemical feedstock from
UHV project
▪ Shifting product portfolio to be
specialty player through PTT
Group Partnership strategy
– PP compound
– Polyol
– AA/ SAP
– PX
– SM
Phoenix + : 2010 Onwards
▪ Transformation to support high
value added product growth
– CHP I
– PRP
– EBSM
– UHV
▪ Quick specialty capacity
expansion/ Grade shifts
– TDAE
– ABS6/SAN3
– HDPE-Pipe Grade
– UHMWPE
3
Structural Changes for
Specialty Growth
Quick Win Initiatives
for Cost Reduction
Margin Enhancement
Specialty Growth and
Move away from
heavy - asset company by
investing through JV
1 2
25
Post-Phoenix Specialty Growth through JV
Delta Margin Improvement Initiatives
Phoenix + Structural Changes for Specialty Growth
Product Yield
23%
8%
14%
10%
40%
38%
5%
10%
16%
21%
2%
5%
6%
2%
0%
20%
40%
60%
80%
100%
IRPC IRPC+UHV
Ethylene
Propylene
LPG
Naphtha +Reformate
Gasoline
Diesel/ JetFuel
Lube Oil
Fuel Oil
Market GIM ($/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
Post-Phoenix Specialty Growth through JV
Delta Margin Improvement Initiatives
Phoenix + Structural Changes for Specialty Growth
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
Strategic Initiatives: Delta
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
Post-Phoenix Specialty Growth through JV
Phoenix + Structural Changes for Specialty Growth
Delta Margin Improvement Initiatives
28
Strategic Initiatives: Delta
Post-Phoenix Specialty Growth through JV
Phoenix + Structural Changes for Specialty Growth
1 2 3
Delta Margin Improvement Initiatives
29
Strategic Initiatives: Post-Phoenix
Post-Phoenix Specialty Growth through JV
Phoenix + Structural Changes for Specialty Growth
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
Delta Margin Improvement Initiatives
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.
I. 2013 Highlights
II. Operation & Financial Performance
III. Industry Outlook
IV. Strategic Direction
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