3Q/ Q/14 14 ANAL ALYST YST M MEETING P PRESEN SENTAT ATION Supattanapong Punmeechaow, President & CEO Patiparn Sukorndhaman, EVP-Finance and Accounting Sriwan Eamrungroj , EVP -Marketing, Commercial and Supply St. Regis Hotel, Bangkok November 14, 2014
DI DISCL CLAI AIMER ER 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
AGE GENDA NDA 1. MISSION TO BE CONTINUED 2. 3Q/14 OPERATING RESULTS 3. MARKET OUTLOOK 3
AGE GENDA NDA 1. MISSION TO BE CONTINUED 2. 3Q/14 OPERATING RESULTS 3. MARKET OUTLOOK 4
MISS ISSIO ION TO O BE BE CON ONTIN INUED ED Del eliver vering ng a Sust stai ainabl able G e Grow owth a h and b balanci ncing a ng all Stake kehol holder ders s ‘ inter erest ests Vision To Be a Leading Chemical Company For Better Living Mission Supattanapong Punmeechaow, President & CEO PTTGC’s Top Management Team’s Commitment 5 * Effective October 1, 2014
SUSTAI AINABL ABLE G GROWTH W WITH W WORLD CLASS S SS SUCCESS ESS Board of the year Best Public Company of Awards 2013 for Distinctive Practices the Year 2014 American Chemical Asia Responsible Society Entrepreneurship Awards Global Top 50 Rank #39 A Member of United Nations Global Compact at Advanced Level [UNGC] Excellence in SHE ICIS TOP 100 Awards Conditions for 16 Rank # 22 Consecutives 2 nd Consecutive years AMCHAM CSR Excellence Forbes Global 2000 Thailand’s Top ASEAN CG Scorecard Recognition 2013 Silver Corporate Brand Rank #687 in Global 2000 level in Creative 1 of 17 Thai Corporates Rank #14 in Diversified Chemicals Values 2014 partnership ENVIRONMENT Carbon Footprint for Product The first company in Thailand Certification from Thailand Award by CDP in Climate Disclosure who received the Carbon Neutral Greenhouse Gas Organization Leader for 2 Consecutive years & certification ranked 1 of 7 leading companies 6
HIGH IGH ST STANDARD OPER OPERATION ONS & W & WOR ORK PR K PROC OCESS YTD Plant Operation (1) as of Sep. 14 Management System 1 st Quartile Strategic Performance 2 nd Quartile Management Enegy Efficiency Real-time Performance 3 rd Quartile Energy Efficiency and Reliability drop from its normal standard due to the Real-time Dashboard unstable feedstock supply from PTT’s GSP #5 technical problem from Lightning 4 th Quartile Strike since Aug. 2013 and I4-1 Shutdown Layout the Infrastructure with Single Enterprise in Feb. 2014. Resource Planning (ERP) Integrated End to End Work Process and will Support • Future Business Expansion 4 th Quartile 3 rd Quartile 2 nd Quartile 1 st Quartile Reliability Refinery Polymers : HDPE, Polymers : LDPE Aromatics Olefins Polymers : LLDPE EO-Based Performance Note: 1) Internal Calculation base on Solomon and Phillip Townsend Methodology 7
ON ON GOI GOING S G STRA TRATE TEGI GIC C DI DIRE RECTI CTION N E XCELLENCE E XECUTION Listed in 1 st Quartile EBITDA Globally Uplift Performance Sustainability 15-30% Index ROIC > 14% (2012-2017) GREEN 1-STEP ADJACENCIES CORE UPLIFT PROJECTS NEW GEOGRAPHIES NEW PRODUCTS Oleochemical PLA Operational Marketing System House ASEAN: Pertamina Excellence Excellence Succinic Acid CHINA: Sinochem Compounding PLA/PBS Compound US: Shale Gas PC, PU, Nylon 6-6 Synergy Debottle Excellence necking 8
CORE UP CORE UPLIFTS FTS: PROJ ROJECTS CTS UP UPDA DATE TE COMPLETED PROJECTS UNDER CONSTRUCTION PROJECTS SYNERGY CONSTRUCTION PROGRESS BV Project Off Gas upgrading at Olefins Butadiene 75 KTA 91% Delay to 1Q/15 Butene-1 25 KTA from Target: 4Q/14 DEBOTTLENECKING CAPEX CONSTRUCTION CAPACITY & EXPANSION (M.USD) PROGRESS Pure H2 via New PSA Phenol 2 Project Phenol +250 KTA 348 77% Acetone +155 KTA Target COD: 3Q/15 TO BE FINALIZED TOCGC Plant Improvement Project DEBOTTLENECKING CAPEX EOE +90 KTA 94.2 53% CAPACITY & EXPANSION (M.USD) Target COD: 3Q/15 PTTPE Cracker 12% Olefins Aromatics 2 348 Debottlenecking Increase Debottlenecking PX +115 KTA Project BZ + 35 KTA 128.8 43% (PX Expansion) OX + 20 KTA New LLDPE Target COD: 4Q/15 LLDPE Expansion 272 +300 KTA To Start C Capturing Benefits i in 2015 2015 9
CORE UPLIFTS CORE UP FTS: BENE NEFI FITS TS UP UPDA DATE TE 2014 9M/14 Est. Excellence Programs Target Target Actual 2014 (MUSD) Synergy Excellence - Heavy Gas (Offgas) (MUSD) - Pure H2 via PSA 83 32 46 - C3/C4 Stream - 3 Streams (Heavy Gasoline, LCB, CB) - Heavy Aromatics Marketing Excellence - Customer Portfolio Management 80 96 127 - Product Development - Pricing Excellence Operational Excellence - Total 47 projects in 2014 * Debottleneck EBITDA uplift includes 1Q/14 BV project starts up - 34 Energy Saving Projects 31 28 37 3Q/15 TOCGC Plant Improvement Project 4Q/15 PX Expansion starts up - 7 Plant Reliability Projects - 6 Cost Reduction/Optimization Not Including PTTPE Cracker Debottlenecking and LLDPE Expansion Projects Total 194 156 210 10
1-STE TEP ADJ DJACE CENCI NCIES: S: NE NEW GE GEOGRA OGRAPHI HIES Pride de of of Indon ndones esia Expected Project Timeline 2016-2019 2020 2015 2014 Basic FID Construction COD New Engineering Cracker + Downstream Design Petrochemical PTTGC will mainly focus on Petrochemical • while PTT joined bidding for Refineries Pertamina Refinery Expansion Unit VI Balongan Potential Partners Continues to Increase Existing • LPG, Polymer Sales in Balongan Refinery (938 KTA) Indonesia via ITT New New (125 KBD) according to targets World Scale Downstream Naphtha Petrochemical Based Cracker Expansion Customers Naphtha Refinery (1,796 KTA) 11
1-STE TEP ADJ DJACE ACENCI NCIES: NE NEW PRODUCTS RODUCTS Com ompl pleting t the J he Jigs gsaw of of PU Chai hain 1 Vencorex Transformation Formulation & PU Building Blocks End-use • TDI conversion to world-scale HDI monomer PU Isocyanate • Global technology center Foam (67%) • New HDI derivatives plant in Thailand 1 Capacity: 12 KTA • Investment: EUR 40 million • 2 TDI Expected IRR > 15% • Target Commissioning by 3Q/15 HDI • System House Overall Progress at 26% as of Sep 14 CASE (33%) MDI • Propylene Oxide Polyols (PO) -Polyether 2 Polyols PO-Polyols & System House Ethylene Oxide (EO) • Shortlisting of Technology and Potential Partner Isocyanate is a key • Under Feasibility Studies Broad and diverse end-use building block. • To Finalize Potential Partner by 2015 applications 12
MITI TIGATING NG THE THE RI RISKS KS Dec ecline ne of of C Crude ude Oil P Price Corporate Risk Management System Risk Mgmt Process Risk Criteria Risk Audit Monitor & Review Risk Management Risk Assessment Marketing Excellence Pricing Customer Value Product /Portfolio Mgmt. Development Excellence Commercial and Financial Risk Management Crude/Products Inventory FX Hedging Hedging Hedging Optimization Decline Capital Project Mgmt. Synergy Crude Oil Price Utility Management Supply Chain Mgmt. Reliability & Asset Operational Excellence Integrity Turnaround Excellence Inventory Mgmt. Stress Test Close Monitoring Reviewing 13
MITI TIGATING NG THE THE RI RISKS KS Ener nergy R Ref eform Corporate Risk Management System Risk Mgmt Process Risk Criteria Risk Audit Monitor & Review Risk Management Risk Assessment Increase Public Understanding Alternative Feedstock to fulfill Plant Flexibility Studies of Feedstock from US Shale Gas Plant Optimization LPG (Fully Flexible Feedstock Intake) (Price Increase from Energy Reform) Studies of Logistics Facilities Stress Test Close Monitoring Reviewing 14
AGE GENDA NDA 1. MISSION TO BE CONTINUED 2. 3Q/14 OPERATING RESULTS 3. MARKET OUTLOOK 15
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