3Q 2015 Analyst Presentation November 19, 2015 Business Strategies - PowerPoint PPT Presentation

3Q 2015 Analyst Presentation November 19, 2015

Business Strategies 1

3Q15 Macro Environment ■ Thai economy recovered at a gradual pace; GDP grew modestly at 2.9% ■ Pressured by a global over supply, Dubai crude oil decreased to $45/bbl ■ Industry gross refining margin rebounded to a 3-month high in September at $7.7/bbl ■ Thailand industry retail market grew by 9% year-on-year ■ Paraxylene prices moved in a narrow range, slightly decreasing from the previous quarter 2

3Q15 Business Highlights ■ Crude run of 135 KBD with a negative gross refining margin of $0.9/bbl mainly driven by the impact of a stock loss ■ Paraxylene production of 63 Ktons, a slight increase from the previous quarter but still reflective of current industry environment ■ Started full streamline operations to improve feed into the Fluid Catalytic Cracking Unit ■ Launched premium ADO at 218 sites and E20 at 376 sites as of September ■ Added 14 new service stations and expanded alliance partnerships (e.g., Burger King, Tesco Lotus, Family Mart, Car Studio, and Clean4you) 3

Operating Performance Industry Gross Refining Margin ($/bbl) Crack Spread ($/bbl) 25.0 9.0 8.0 8.0 19.5 19.3 20.0 7.0 6.3 15.8 15.5 6.0 15.0 13.2 13.1 4.8 5.0 UGP 4.0 ADO 10.0 3.0 2.0 5.0 1.0 0.0 0.0 3Q 14 2Q 15 3Q 15 3Q 14 2Q 15 3Q 15 Gross Refining Margin ($/bbl) Crude Intake (KBD) 160 15.0 13.1 141 135 127 10.0 120 5.0 80 0.0 3Q 14 2Q 15 3Q 15 40 -0.9 -5.0 -5.8 -10.0 0 3Q 14 2Q 15 3Q 15 Dubai ($/bbl) 97 62 45 (Dubai crude oil price at quarter-end) Industry GRM and Crack Spread Source: Reuters 4

Operating Performance Crude Intake by source Refinery Production 11% 16% 18% Caspian 21% 2% 3% 28% 27% West African Feedstock 54% 52% Light Far East & South East Middle 45% 45% 33% Middle East Heavy 24% 11% 10% FY2014 YTD2015 FY2014 YTD2015 Sales Channel ■ Processed higher levels of Middle East and South East crudes, reflecting catalyst management and streamlined operations 14% 13% Export ■ Higher feedstock and lower heavy yield production from 38% 38% Retail improved crude diversification Commercial 48% 49% ■ Greater proportion of commercial sales with a reduction in exports FY2014 YTD2015 5

Operating Performance Px Spread ($/Ton) Px Production (K Ton / quarter) 400 70 364 69 350 68 300 66 227 250 220 64 63 205 200 62 150 126 60 59 116 100 58 50 56 0 54 3Q 14 2Q 15 3Q 15 3Q 14 2Q 15 3Q 15 PX-UGP PX-MX ■ Paraxylene spreads decreased from the previous quarter as industry condition remained challenging due to excess capacity in the region ■ Production levels increased slightly but continued at minimum operating levels 6

Refinery Update ■ Achieved flawless operations – Reached 13 million man-hours without a lost time injury – Sustained reliable operations ■ Started full streamline operations following capacity modification improvements – Lower feedstock costs – Improved feed quality to the conversion unit (FCC) – Improved energy efficiency – Increased asphalt production ■ Asphalt quality improvement project is underway 7

Marketing Business Performance Service Stations offering E20 Service Stations offering Premium ADO 500 240 218 200 400 376 327 151 YE 2014 3Q 2015 2015 Plan 2015 OL YE 2014 3Q 2015 2015 Plan 2015 OL New Service Stations Mobil 1 Centers 30 300 300 24 24 287 14 280 YE 2014 3Q 2015 2015 Plan 2015 OL YE 2014 3Q 2015 2015 Plan 2015 OL 8

Comprehensive Income Sales Revenue Interest Expenses 50.0 45 0.2 42 0.2 0.18 40.0 30.0 0.1 20.0 10.0 - 2Q2015 3Q2015 - 2Q2015 3Q2015 EBITDA Net Profit/(Loss) 4.0 6.0 3.3 4.7 5.0 3.0 4.0 2.0 3.0 1.0 2.0 1.0 - 2Q2015 3Q2015 - (1.0) 2Q2015 3Q2015 (1.0) (2.0) (1.5) (1.7) (2.0) 9

Comprehensive Income Balance Sheet Indicators 70 70 ■ Decrease in assets driven by lower inventory value D/E 2.2 0.5 3 60 60 D/E 2.5 0.5 3 13 21 50 50 9 15 ■ Decrease in liabilities driven by lower crude payables 40 4 4 40 2 1 30 33 30 33 20 20 37 37 ■ Debt to equity increase slightly with lower shareholders equity due to 10 10 15 13 3Q loss 0 0 2Q2015 3Q2015 2Q2015 3Q2015 Cash Inventory Shareholder's Equity Debt Payables Others Receivables Other current Asset Non-current Assets Cash Flow ■ Cash flow from operating reflects strong operating performance 4 3 2 ■ Cash flow used in investing activities resulted from investments for 2.7 2.7 1 capacity maintenance and retail network 0 (0.2) (0.4) 2Q2015 3Q2015 -1 (2.4) (2.3) ■ Financing activities reflect repayment of debt -2 -3 Cash flows from financing activities Cash flows from investing activities Cash flow from operating activities 10

Summary ■ Continue to focus on operational excellence ■ Execute energy efficiency and margin enhancement projects ■ Expand Retail network and premium product offerings ■ Leverage strong financial rating with support from parent 2015 Projects 11