investor presentation 1q/13 analyst...

1Q/13 Analyst Meeting INTERCONTINENTAL HOTEL BANGKOK MAY 14, 2013 – 14.45-16.00 hrs

Investor Presentation Roadshow : SCB Securities & Goldman Sachs

Hong Kong May 23rd-24th

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 1Q/13 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)

35% 65%

85%

15%

72%

28%

93%

7% 69%

31%

Aromatics

77%

23%

1Q/13 Sales Portion by Business Unit

6

Refinery

Aromatics

Export

Domestic

Export Domestic

Export

Domestic

Olefins

Export

Domestic

Polymers

Export

Domestic

EO-Based

Export Domestic

Green (ME, FA)

Total Sales THB 141 billion

40% 21% PTTGC

Others 39%

34%

35%

31% PTTGC

39% 28% PTTGC

Others

Others 33%

By Thailand’s Market Share

HDPE

LDPE

LLDPE

Import

Import

Import

Sales portion in quantity (bbl/ton)

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

Organization Chart and Business Units

8

Agenda


9

PTTGC’s Strategies Overview

10

“To be a Leading Chemical Company for Better Living”

11

Execution Led by a Well Defined Strategy Core Uplift 1-Step Adjacencies Emerging Business Models

Methodical approach to achieving business excellence

Operational Excellence

Marketing Excellence

Synergy Project Excellence

Debottleneck CAPEX

Excellence

Reliability improvement

Energy efficiency improvement

Cost reduction

12 projects completed out of 105

Product development

Customer / Portfolio mgmt

Strategic pricing

Product upgrade

Cost saving from share tank and facility

Steam Cost reduction

PX expansion

BV Project

Quench oil tower modification

Capital Project Management

Engineering

Procurement

Construction

Project Mgmt.

1 2 3 4 5

1Q/13 EBITDA uplift USD 0.16 mn USD 45.9 mn USD 4.7 mn

“In 1Q/13, we achieved EBITDA uplift of USD 50.76 mn from Operational Excellence, Marketing Excellence, and Synergy Project Excellence”

FY13 Target EBITDA uplift for all Excellence programs USD 177 mn

Operational Excellence

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

To achieve 1st quartile of energy efficiency and reliability

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

12

Core Uplift 1-Step Adjacencies Emerging Business Models

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

1Q/13 Achievement EBITDA uplift

USD 0.16 mn

Refinery: - Alternative Feedstock Aromatics: - Reliability improvement and new feedstock sourcing

(Condensate) Olefins: - Yield improvement Polymer: - Variable cost improvement

Aromatics: - Install Ultrasonic Scale prevention at ARO I to protect fouling at condensate splitter - Reroute crude line at AROII to minimize energy consumption Polymer : - Install APC to optimize process condition and mitigate severity with automatic response - Install impurity removal unit to remove impurity from Butene I feedstock

Benefit Expected per Year 2013-2017

~ USD 85 mn


USD 25.1 mn

Uncommitted CAPEX for Mkt Ex 2013-2017

~ USD 10 mn

Marketing Excellence Core Uplift 1-Step Adjacencies Emerging Business Models

Polymer: - 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

13 13

2


USD 45.9 mn

Refinery: Divert exported reformate to domestic G-base blending, to capture opportunity from gasoline 91 suspension Olefins: Divert all recycled mixed C4s to export market. Polymer: - Expand more HDPE market share (35% in 1Q/12 to 40% in 1Q/13)

Synergy Projects Excellence

Exchange Stream Products By-Products

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

14



USD 9.1 mn


USD 4.7 mn

15

Debottleneck/By-Product Value Enhancement 4 Core Uplift 1-Step Adjacencies Emerging Business Models

• BV Project/ C4 Value Enhancement • Upgrade mixed C4 to butadiene (75 ktpa), and butene-I (25 ktpa)

• Investment USD262 mn, IRR 17.4%, Completion 1Q/14

• Work progress 74.1%, as scheduled

• Quench Oil Tower Modification • Establish an effective operation of the Quench System with new design case handling higher rate of mixed

vapor hydrocarbon cracking feed flow

• To reduce naphtha to gas portion (liquid/vapor ratio) from 0.95 to 0.60, (accounting for the increase gas portion of 18ton/hr) at I4-1 (mixed feed cracker)

• Investment USD 3mn, Completion 4Q/14 • Under basic engineering design package

2014

2016 2015

2016

• AROII Debottleneck • Increases existing capacity at AROII from 655 ktpa to 770 ktpa (total PX capacity from AROI and ARO II to

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

• Completion 3Q/15

• BED and FEED completed, granted BOI approval, pending for EIA approval • Submission of bidding for EPC in Jul-Aug 2013

• PTTPE Cracker and Polymer Plants Debottleneck • 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

16

CAPEX Excellence

Capital Project management Engineering Procurement Construction Project management

Important value levers for capex optimization

Visi

on Be a world-class center of excellence for

capital projects and maintenance service

Capital 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

Syst

ems,

Cap

abili

ties,

Proc

esse

s, To

ols

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


5

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

Rationale: Expand downstream product portfolio (PC and PO chain) and support HVS strategic initiative

Timeline: Signed HoA with Petronas and Itochu, target completion by 2016 for feasibility study

CAPEX: Estimated USD 2 bn, PTTGC expects to contribute 25% of the equity component

Rationale: Competitive advantage over size and vicinity

World-scale integrated petrochemical complex covering upstream to downstream

Vicinity adjacent to demand also projected to grow significantly

Pave a way towards HVS product offering

Timeline: Signed HoA in Apr 2013 and target to sign JV agreement by Dec 2013

CAPEX: Estimated investment of USD 4 bn, with D/E > 1 under project finance

17

Rationale: Secure access to China downstream market

Timeline: Signed MoU to jointly explore potential collaboration e.g., PU and PC chains and Bio-based chemicals

CAPEX: TBA

18

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

19

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

Approved CAPEX Plan 2013-2017

239 240 241 254 240

316

72

210

9

77

15

1

-

100

200

300

400

500

600

700

800

900

2013 2014 2015 2016 2017 Annual Maintenance* Core uplift 1-step adjacencies Green

Million USD 842

336

242 254 240

20

Unit: USD mn

* 1. Maintenance CAPEX for 2014-2017 subject to board approval 2. Exclude one-off Maintenance CAPEX

Y2013 Y2014Core Uplift 316 72

Synergy Projects & BV Project

1 Step Adjacencies 210 9Vencorex Plant Improvement & Phenol

Green 77 15Emery downstream investment

21

Uncommitted CAPEX Plan USD 4.5 bn 2013-2017

31%

64%*

5%

*64% excluding the purchase of PPCL as already included in approved CAPEX

Core Uplift

1 Step Adjacencies

Green

Agenda


22

- PX spread in 2H13 expected to be softened than 1H13 from new PX capacities

- BZ spread is expected to maintained in 2H13 due to the limited feedstock (Pygas) from lower run rate of Naphtha crackers, and improved BZ demand driven by SM - 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

23

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/13, 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 800 ktpa in 2013, and 1 mtpa in 2014 coupled with rising feedstock cost

- Demand should however pick up in 2016 with less capacity addition

Agenda


24

1Q/13 Key Achievement and Milestone

• Completed amalgamation between PTTUT and IPT. PTTGC holds 30.31% in mergedco GPSC to strengthen business operation of utilities

• Combined BPE and PTTPE into PTTGC to streamline business integration

• Acquired remaining 40% shareholding of PPCL from PTT to pursue its downstream investment and capture the fully integrated value of Phenol chain. PTTGC currently holds 100% since May 2, 2013.

Streamline and

strengthen business structure

• Plant availability with flat out utilization rates • Excellence programs achieved as planned- contributed USD 50.6 mn

• Strengthening USD exposure contributed to FX gain of THB 1,986 mn

• Paid 3.40 THB/share of dividend, 45% payout ratio

Develop a Solid

Business

• HoA with Indonesia’s PT Pertamina for future investment in new petrochemical complex (world scale naphtha cracker and downstream derivatives)

• MoU with IRPC for feasibility study on downstream products including polyol and styrenic

• Mechanical completion at Myriant’s Succinid Acid plant in Louisiana (14 ktpa) • Commissioning at Natureworks’ PLA expansion unit to expand PLA capacity

from 140 ktpa to 150 ktpa

Pursue Three-Pillar

Strategy

25

Key Financial Highlights

Revenue increased 6% YoY primarily from sales increase in Aromatics and Olefins AROII turnaround 30 days in 1Q/12, I4-2 turnaround 33 days in 1Q/12

Net Income increased 23% YoY and 16% QoQ due mainly to higher utilization rates and higher product prices

Unit in THB million

*Changes in the classification of catalyst, from operating expenses to be in the depreciation and amortization, according to the accounting policy effective since 1Q/2013 onward. **Adjusted EBITDA refers to EBITDA excluding impact of inventory value (excludes Inventory and NRV) and excluding impact of commodity hedging

Revenue 133,666 144,595 141,309 6% -2%EBITDA 14,988 16,553 16,419 10% -1%EBITDA Margin (%) 11% 11% 12% 1% 1%Net Income 9,852 10,388 12,075 23% 16%EPS (THB/share) 2.2 2.3 2.7 23% 17%

Adjusted EBITDA** 11,483 16,584 16,914 47% 2%Adjusted EBITDA Margin (%) 9% 11% 12% 3% 1%

QoQ1Q/20131Q/2012* 4Q/2012* YoY

26

27

70

24 27

8 4 1

66

31 30

7 9 1

64

30 32

7 8

0.1

Refinery Aromatics Olefins andDerivatives

Green HVS Others

1Q/12 4Q/12 1Q/13

1.6 1.2

7.3

0.5 0.2 0.7

2.0

4.3

8.5

0.2 0.8 0.8

1.9

4.2

9.6

0.6 0.3 0.3

Refinery Aromatics Olefins andDerivative

Green HVS Others

1Q/12 4Q/12 1Q/13

45%

21%

23%

5% 6%

0.1%

11%

26%

58%

3% 2% 2%

Unit in THB bn Revenue Breakdown Unit in THB bn Adjusted EBITDA Breakdown

1Q/13 Revenue Breakdown (%) 1Q/13 EBITDA Breakdown (%) Adjusted EBITDA Margin by Core BU

Segmental Results – 1Q/13 Olefins and Olefins Derivatives Business contributed greatly to EBITDA

1Q/12 4Q12 1Q/13Refinery 2% 3% 3%Aromatics 5% 14% 14%Olefins and Derivatives 27% 28% 30%HVS (Phenol+Vencorex) 5% 9% 4%

Refinery

Aromatics

Green HVS Others

Refinery

Aromatics

Olefins and Olefins Derivatives

Phenol Green

Others

THB 141 Bn

THB 16 Bn

Olefins and Olefins Derivatives

34,673

240,497

238,045

100,830 150,392

60,062 47,625

39,240

221,185

245,451

104,235 129,598

55,982 45,592

Strong Financial Position

28

• Free Cash Flow for Investment

• Key Financial Ratios As of Dec 31, 2012 As of Mar 31, 2013

THB 421 bn THB 436 bn

Cash + ST Investment

CA

PPE

Non CA

Share holders’ Equity

IBD

Liab.

• Balance Sheet

Dec 31, 12 Mar 31, 13

ROA 10.43% 11.13%

ROE 16.16% 16.39%

Net IBD / Equity 0.45 0.38

Net IBD / EBITDA 1.97 1.63

THB bn

7.4 9.9 6.0

24.3

7.2 2.0

8.1 26.8

30.5

2.3 9.4

18.1

32.8

54.9

1Q/12 2Q/12 3Q/12 4Q/12 1Q/13

FCF for InvestmentDebt Service and DividendCash from Operation

9.5

Agency Credit Rating

Moody’s Baa2

S&P BBB

9.7 11.6

7.1 9.5

19.2

11.6

7.8

11.7

0.5

29.4

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

PTTGC PPCL Others

59%

41%

2%

37%

61%

Diversified Debt Exposure and Repayment Schedule

29

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

Average loan life after refinancing - 5.4 Years

Debt Profile as at Mar 31, 2013

Maturity of Financial Debt as at Mar 31, 2013

Debenture

ST Loan

LT Loan

THB

USD & Foreign

THB Billion

Treasury policy Net IBD to Equity ratio of ≤ 0.7x Net IBD to EBITDA ratio of ≤ 2.4x

69%

31%

Floated

Fixed

PTTGC’s Way Forward

FY13- another year to achieve high performance as targeted, with EBITDA uplift up to 30% towards 2017 following Operational Excellence, Marketing Excellence, Synergy Projects, and Debottlenecking

Continue to pursue the target for strong profitable

growth CAGR ~2-3% towards 2017 with expected revenue increase to THB 620-650 bn

CAGR ~5-7% towards 2022 with expected revenue increase to THB 800-900 bn

30

For further information & enquiries, please contact our Investor Relations Team at [email protected]

Thank You

1. Thitipong Jurapornsiridee VP - Corporate Finance & IR [email protected] +662-265-8574 2. Panugorn Puengpradit IR Analyst [email protected] +662-140-8714 3. Prang Chudasring IR Analyst [email protected] +662-265-8327 4. Sinida Petchveerakul IR Analyst [email protected] +662-140-8713

31

mailto:[email protected]






Appendix

Shutdown Schedule 1Q/13 Segmental Result Product Additional Demand/Supply

32

Shutdown Schedule in 2013

33

Company Plant

2013 Shutdown Plan

H1 H2

PTTGC Olefins I-4/1: S/D 15 days (1-15 May) I-4/1: T/A 44 Days (1Aug-13Sep)

HDPE Cleaning 15 Days (21Apr-5 May) -

Aromatics ARO1: FFU and CHX S/D clean&inspect 15days (17-31Jan) ARO1 : S/D for 10 days (Nov)

ARO2: shutdown aromatics section to decoke Xylene heater 14days (1-14 Jun) ARO2: S/D for cleaning & inspect 17 days (Sep)

Refinery SRU1 S/D yearly inspect 14 days (15-28Feb)

SRU2 S/D yearly inspect 16 days (11-27Mar)

Mini S/D 38days (15May-21Jun)

PTTPE Olefins - -

LLDPE Cleaning&Maint. 25Days (6-30May) -

LDPE Cleaning&Maint. 11days(20-30Mar) Cleaning&Maint. 10days (1-10Sep)

Cleaning&Maint. 5days (1-5Jun) Cleaning&Maint. 5days (15-19Nov)

BPE BPE1 - Cleaning&Maint. 15 Days (1-15 Aug)

BPE2 T/A & Cleaning 30Days (15Jun-14Jul) -

TOCGC EOEG - Cleaning&Maint. 8 days (28 Jul-4 Aug)

Appendix


34

13% 14% 13%

47% 50% 47%

11% 8% 13%

22% 22% 19% 7% 7% 7%

0

5

10

15

20

1Q/12 4Q/12 1Q/13

Mill

ions

1Q/12 4Q/12 1Q/13 YoY QoQMarket GRM 3.80 4.66 4.37 15% -6% Hedging Gain/(Loss) 0.16 0.63 0.27 63% -58% Stock Gain/(Loss) Net NRV 4.9 -0.63 -0.91 -119% 44%

Accounting GRM 8.86 4.66 3.73 -58% -20%

Quarter +/-

Refinery BU Performance Market GRM softened QoQ upon slightly higher feed price

35

147 146 146

35 55 58

101% 101% 101%

0%

20%

40%

60%

80%

100%

120%

0

50

100

150

200

250

1Q/12 4Q/12 1Q/13

Crude CR+Other feed CDU rate

4.0

1.6 1.4 1.5

2.0 1.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

1Q/12 4Q/12 1Q/13

EBITDA Adjusted EBITDA

Total Production Volume (mbbl)

Others Ref+LN

Jet

Diesel

Fuel Oil

16.0 mbbl 17.8 mbbl 18.4 mbbl

Unit in THB bn

Total Intake in KBD CDU U-Rate

1Q/12 4Q/12 1Q/13 YoY QoQDubai crude 116 107 108 -7% 1%ULG95-Dubai 14 14 19 36% 36%Jet-Dubai 16 19 20 25% 5%Diesel-Dubai 18 20 20 9% 0%FO-Dubai -3 -9 -7 133% -22%

Quarter +/-

usd/bbl

182 201 204

1,006

1,359 1,233

200

255 244

73%

91% 92%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1Q/12 4Q/12 1Q/13

Condensate Reformate + Other feed BTX rate

23% 22% 24%

16% 14% 15%

23%

24% 23%

28%

30% 27% 10%

11% 11%

-

200

400

600

800

1,000

1,200

1,400

1,600

1Q/12 4Q/12 1Q/13

1Q/12 4Q/12 1Q/13 YoY QoQP2F 196 387 394 101% 2% Hedging Gain/(Loss) 1 -5 0 -100% -100% Stock Gain/(Loss) Net NRV 66 -2 -1 -102% -50%

Accounting P2F 263 380 393 49% 3%

Quarter +/-

36

Aromatics BU Performance P2F higher YoY and QoQ upon improved

Others

Ref+LN

CR

BZ+CX

PX group

1.9

4.1 4.2

1.0

4.2 4.2

0.00.51.01.52.02.53.03.54.04.5

1Q/12 4Q/12 1Q/13

EBITDA Adjusted EBITDA

Total Production Volume in Kton

Unit in THB bn

Total intake in kton

1,110

1,488 1,357

1,206

1,614 1,477

1Q/12 4Q/12 1Q/13 YoY QoQCondensate 1,006 925 944 -6% 2%PX FECP-Condensate 556 610 681 22% 12%BZ SPOT KR-Condensate 175 437 435 149% 0%Naphtha-Condensate 15 19 17 13% -11%

Quarter +/-

usd/ton

17%

83%

16%

84%

16%

84%

37

Olefins and Olefins Derivatives BU Performance

Sales Volume in Kton and Utilization Rates

*Olefins’ external sales

Price and Spread in USD/ton

84% 89% 88%

16% 11% 12%

1Q/12 4Q/12 1Q/13

Gas Naphtha

1Q/12 4Q/12 1Q/13% + / -

YoY

% + / -

QoQ

Naphtha 1,021 944 961 -6% 2%HDPE 1,395 1,393 1,482 6% 6% HDPE-Naphtha 374 449 521 39% 16%LLDPE 1,318 1,399 1,477 12% 6% LLDEP-Naphtha 297 455 516 74% 13%LDPE 1,391 1,369 1,459 5% 7% LDPE-Naphtha 370 425 498 35% 17%MEG 1,237 1,247 1,282 4% 3%MEG-0.65 Ethylene 424 411 375 -12% -9%

7.2 8.4

9.6

1Q/12 4Q/12 1Q/13

Total intake

883 kton 879 kton 1,012 kton

Olefins and Olefins Derivatives Adjusted EBITDA Margin in THB bn

Sales Volume Utilization Rate Sales Volume Utilization RateSales Volume Utilization Rate YoY QoQOlefins* 175 85% 169 88% 200 97% 14% 19%HDPE 182 105% 203 100% 216 109% 19% 7%LLDPE 99 100% 117 111% 102 113% 3% -13%LDPE 60 71% 63 71% 75 101% 26% 19% Total Polyethylene 340 93% 383 100% 393 109% 15% 3%MEG 69 79% 101 96% 83 97% 20% -18%

1Q/12 4Q/12 1Q/13 % +/ -

38

Phenol Performance

Sales Volume in Kton and Utilization Rates

75%

25%

Sales Portion of all Products in Quantity (%)

Export

Domestic

Contract 93% Spot 7%

Contract 53% Spot 47%

0.17 0.23

0.15

0.000.050.100.150.200.25

1Q/12 4Q/12 1Q/13

Phenol Adjusted EBITDA in THB bn

Phenol and BPA P2F in USD/ton*

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

1Q/12 4Q/12 1Q/13 YoY QoQPhenol 1,473 1,484 1,523 3% 3%Phenol-BZ 293 111 143 -51% 29%BPA-Phenol 217 242 356 64% 47%

Quarter +/-

* Source: PPCL

45 41 38

13 35

25

97%

129% 126%

27%

83%

60%

0%

20%

40%

60%

80%

100%

120%

140%

-

10

20

30

40

50

60

70

80

1Q/12 4Q/12 1Q/13

Phenol BPA Phenol U-rate BPA U-rate

1Q/12 4Q/12 1Q/13 YoY QoQPhenol Margin 489 362 405 -17% 12%BPA Margin 146 166 282 93% 70%

Quarter +/-

39

THB Mn % THB Mn % THB Mn % THB Mn % THB Mn %

1 Sales Revenue 133,666 100 144,595 100 141,309 100 7,643 6 -3,286 -2

2 Feedstock Cost -114,044 -85 -117,131 -81 -112,119 -79 -1,925 -2 -5,012 -4

3 Product to Feed Margin 19,622 15 27,464 19 29,190 21 9,568 49 1,726 6

4 Variable Cost -3,140 -2 -4,877 -3 -6,903 -5 3,763 120 2,026 42

5 Fixed Cost -3,274 -2 -5,083 -4 -4,128 -3 854 26 -955 -19

6 Stock Gain/(Loss) & NRV 3,410 3 -323 -0 -643 -0 -2,767 -81 320 99

7 Gain/(Loss) Hedging Commodity 95 0 292 0 148 0 53 56 -144 -49

8 Other Income 753 1 2,205 2 1,324 1 571 76 -881 -40

9 SG&A -2,478 -2 -3,126 -2 -2,569 -2 91 4 -557 -18

10 EBITDA 14,988 11 16,553 11 16,419 12 1,431 10 -134 -1

11 Depreciation & Amortization -3,904 -3 -4,424 -3 -3,952 -3 48 1 -472 -11

12 EBIT 11,084 8 12,129 8 12,467 9 1,383 12 338 3

13Financing Expenses (Net Interest Earned)

-1,325 -1 -1,387 -1 -1,115 -1 -210 -16 -272 -20

14 FX Gain/(Loss) 1,036 1 409 0 1,986 1 950 92 1,577 385

15 Shares of gain/(loss) from investments -42 -0 -128 -0 -18 -0 -53 -126 110 86

16 Corporate Income Tax -684 -1 -694 -0 -1,220 -1 536 78 526 76

17 Net Profit After Income Tax 10,069 8 10,329 7 12,100 9 2,031 20 1,771 17

Portion of Net Profit:

18 Shareholders 9,852 7 10,388 7 12,075 9 2,223 23 1,687 16

19 Minorities 217 0 -59 -0 -25 -0 -192 -88 -34 -58

20 Adjusted EBITDA 11,483 9 16,584 11 16,914 12 5,431 47 330 2

1Q/20134Q/2012 YoY QoQ1Q/2012

Profit and Loss Statement

Appendix


40

434 427 394 378 345 439 431 411

961 894 872 854

1,395 1,321

1,267 1,232 1,306 1,333

1,303 1,265

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13F 2Q/13F 3Q/13F 4Q/13F

Olefins Improved derivatives demand will support to Olefins market

USD/Ton Short-term Price Forecast Short-Term • Olefins prices were expected to remain high in

1H-13 due to improve demand in derivatives markets in line with new PE plants in Asia will come on-stream

• However the market will be pressured from

1) Additional new supply in Middle East and Asia (especially in China and Singapore) in the second half of the year

2) Lighter turnaround plan at Asia cracker in 2013

Long-term Supply/Demand

41

Additional (2012-2017) (Unit : MMT)

Supply Demand 36.26 30.92

America16%

Middle East20%

Europe2%

China42%

Other Asia20%

Source: CMAI April 2013

-2,0000

2,0004,0006,0008,000

10,00012,000

2012 2013 2014 2015 2016 2017 America Europe Middle East China Other Asia Additional demand

Unit : KMT

Saudi Polymers Saudi 1,200 KMT Q3-11 to Q3-12

Reliance India 1,350 KMT Q1-16 to Q3-16

SINOPEC Wuhan CH 800 KMT Q1-11 to Q3-13

ExxonMobil SG 1,000 KMT Q3-11 to Q2-13

Chandra Asri Indonesia 400 KMT Q1-14 to Q3-15

Daqing PC China 600 KMT Q1-11 to Q3-12

Fushun PC China 800 KMT Q1-10 to Q3-12

Sichuan PC China 1,000 KMT Q3-11 to Q4-13

Ilam Iran 458 KMT Q1-15 to Q1-16

BPCL India 220 KMT Q3-11 to Q4-15

CNOOC & Shell China 1,000 KMT Q1-16 to Q1-17

521 506 458 494 516 449 453 474 498 489 446 479

961 894 872 854

1,482 1,400 1,330 1,348 1,477

1,365

1,325

1,328 1,459

1,383

1,319

1,333

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13F 2Q/13F 3Q/13F 4Q/13F

Short-term Price Forecast USD/Ton Short-Term • More new PE supplies in Asia (Mainly

from China) and strong buying resistance from end-use producers due to squeezed margin will weigh on PE markets especially in the second half of the year

• However, PE prices will show the sign of recovery according to the global economic

Polyethylene: HDPE The market will be pressured from new supply in the short term

HDPE Long-term Supply/Demand



America20%

Middle East24%

Europe1%

China44%

Other Asia11%

Source: CMAI April 2013

-5000

5001,0001,5002,0002,5003,000

2012 2013 2014 2015 2016 2017 America Europe Middle East China Other Asia Additional demand

Saudi Polymers Saudi 550 KMT Q3-11 to Q3-12

Ilam Iran 300 KMT Q1-14 to Q1-15

SINOPEC Wuhan CH 300 KMT Q1-11 to Q3-13

Saudi Polymers Saudi 550 KMT Q3-11 to Q1-13

BPCL India 110 KMT Q3-13 to Q4-14

Daqing PC China 400 KMT Q1-11 to Q3-12

OPAL India 350 KMT Q1-13 to Q3-14


Sichuan PC China 300 KMT Q1-12 to Q4-13

Shaanxi Yanchang China 250 KMT Q3-14 to Q1-16

Unit : KMT

42

Polyethylene : LLDPE & LDPE New Capacities and Closures

43 Source: CMAI April 2013

LDPE Long-term Supply/Demand

LLDPE Long-term Supply/Demand





America24%

Middle East7%

Europe0%

China40%

Other Asia29%

America22%

Middle East30%

Europe12%

China28%

Other Asia8%

-5000

5001,0001,5002,0002,5003,0003,500

2012 2013 2014 2015 2016 2017

America Europe Middle East China Other Asia Additional demand

Unit : KMT

SINOPEC Wuhan China 300 KMT Q1-11 to Q3-13

ExxonMobil Sing. 1,300 KMT Q1-11 to Q4-12


Sichuan PC China 300 KMT Q3-12 to Q4-13

OPAL India 350 KMT Q1-13 to Q3-14

Yulin Energy China 300 KMT Q2-13 to Q2-14

CNOOC & Shell China 300 KMT Q1-16 to Q1-17

-500

0

500

1,000

1,500

2,000

2012 2013 2014 2015 2016 2017


Unit : KMT

QAPCO Qatar 300 KTA Q1-12 to Q3-12

Borouge UAE. 350 KTA Q1-14 to Q3-14

Reliance India 400 KTA Q1-15 to Q3-16

Short-term Price Forecast USD/Ton Short-Term • Buying sentiment is expected to be driven up

from stronger demand in the downstream textiles and fabrics sectors in China due to more new Polyester supply will start up in the second half of the year 2013

• However, new MEG supplies will come on-stream during the year will affect the market 375 399

523 533

961 894 872 854

1,395 1,321

1,267 1,232 1,282 1,258

1,347 1,333

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13F 2Q/13F 3Q/13F 4Q/12F

MEG the market will be robust due to strong derivative demand

MEG Long-term Supply/Demand



America12%

Europe7%

Middle East19%India

5%

China49%

Other Asia8%

44 Source: PCI February 2013

01,0002,0003,0004,0005,0006,0007,000

2012 2013 2014 2015 2016 2017

America Europe India Middle East

China Other Asia Additional demand

Petrochina Sichuan China 380 KTA Q3-13 to Q4-13

Henan Coal Chemical China 400 KTA Q1-13 to Q3-12

Qianxi Coal Chem China 400 KTA Q3-13 to Q1-14

Ningbo Heyuan China 500 KTA Q4-12 to Q2-13

Unit : KMT

Henan Coal Chemical China 400 KTA Q1-13 to Q4-12

Short-term Price Forecast Short-Term • PX demand in year 2013 will be supported

from new PTA plants in Asia (especially in China) will start up in and high manufacturing season in textile and fabric sectors in China

• However, additional new supply in Asia and squeezed PTA margins and high inventory levels among downstream Polyester market will affect the PX market

USD/Ton

656 581 586 576

961 894 872 854

1,617 1,475 1,458 1,430

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1Q/13F 2Q/13F 3Q/13F 4Q/13F

Paraxylene Derivatives demand will support PX market

PX Long-term Supply/Demand

45



Source: PCI February 2013

America2% Europe

4%

Middle East28%

India13%

China16%

Other Asia37%

01,0002,0003,0004,0005,0006,000

2012 2013 2014 2015 2016 2017 America Europe India Middle East China Other Asia Additional demand

PetroRabigh Saudi. 1,400 KTA Q3-15 to Q3-16

Tenglong Aromatics2 China 800 KTA Q3-12 to Q1-14

Unit : KMT

Dalians Fujia2 China 700 KTA Q3-12 to Q4-12

Tenglong Aromatics1 China 800 KTA Q2-12 to Q2-13

Short-term Price Forecast USD/Ton Short-Term • Supply continue to be short due to many

refineries and Aromatics plants in Asia will shutdown for maintenance and due to weak demand in derivatives market

• In addition, Benzene market will be depend on volatile crude and feedstock prices and derivatives demand 427 410

472 424

961 894 872 854

1,388 1,304 1,344

1,278

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13F 2Q/13F 3Q/13F 4Q/13F

Benzene the market will still be driven by the main products



BZ Long-term Supply/Demand

America1%

Middle East6% Europe

3%

China37%

Other Asia55%


-500

0

500

1,000

1,500

2,000

2,500

2012 2013 2014 2015 2016 2017


Daqing PC China 150 KTA Q1-13 to Q3-12

Anqing PC China 54 KTA Q3-12 to Q1-13

Samsung Total PC S. Korea 422 KTA Q4-14 to Q1-15

Nghi Son Vietnam 246 KTA Q1-15 to Q1-16

ExxonMobil Sing. 340 KTA Q1-13 to Q2-13 Unit : KMT

Short-term Price Forecast USD/Ton

Short-Term • Phenol market remain continue to face

rising cost and weak supply/demand balances

• Additionally, Phenol market will be pressured from new additional supply in Asia, mainly from China and S. Korea in 2013 397

294 259 380

1,380 1,304 1,344 1,304

1,612 1,442 1,441

1,527

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1Q/13F 2Q/13F 3Q/13F 4Q/13F

Phenol Will be pressured from high feedstock prices and new additional supply



Phenol Long-term Supply/Demand

America1%

Europe2%

China68%

Other Asia55%


-500

0

500

1,000

1,500

2012 2013 2014 2015 2016 2017


Unit : KMT Lihuayi Group Taiwan 217 KTA Q1-13 to Q4-12

INEOS/Yangzi PC China 400 KTA Q3-14 to Q1-16

FCFC China 300 KTA Q4-13 to Q1-14

SSMC China 250 KTA Q4-13 to Q1-14

CEPSA Quimica China 250 KTA Q3-14 to Q1-15

investor presentation 1q/13 analyst...

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