Thai Oil Public Company Limited Presentation to I nvestors Arranged by Citibank, N.A . Hongkong: 1-2 March 2007 Singapore: 5-6 March 2007
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Corporate Vision, Mission and Value Corporate Vision, Mission and Value Vision Mission To be PTT’s flagship refinery through optimized • management of the group’s refining portfolio TOP seeks to be one of the leading fully integrated To expand facilities to better meet domestic demand • refining and petrochemical companies in the region growth recognized for our sustainable growth, optimum To enhance the competitive advantage of our power • stakeholder value, and commitment to environmental generation operations to further solidify the core refining business and social well-being. To create a high-performance organization that • promotes teamwork, innovation and trust Value P = Professionalism O = Ownership & Commitment S = Social Responsibility I = Integrity T = Teamwork and Collaboration I = Initiative V = Vision Focus E = Excellent Striving 3
Contents Contents • Company Overview • Business Outlook • Progress of Investment Projects • Consolidated Financial Performance 4
TOP ’ s Group Structure Group Structure TOP TOP ’ s Group Structure ’ s Power/ Petrochem/ Transportation / Others Refinery Renewable Energy Lube Base Oil PTT 26% PTT 31% J-Power 19% Thaioil Others 60% 100% 100% 55% 100% 9% (TOP) Thai Paraxylene Thai Lube Base Thaioil Power Thappline Thaioil Marine (TPX) (TLB) (TP) (TM) Capacity: SPP program Current: 225 Kbd A fleet of 5 oil & Capacity: Capacity: Multi-product 3-on-1 Combined cycle Pipeline petrochemical Electricity 118 MW Current: 348 KTA (PX) Lube Base oil: 270 KTA vessels with int ’ l Steam 168 T/hr Capacity: 26,000 72 KTA (MX) classifications Q4/07: 275 kbd Utility Supply to Group mn. Litres/Y. Total capacity: 56% approx 30,000 DWT Q4/07: 900 KTA (Total) PTT Group 80% Independent Power 489 KTA (PX) PTT 20% (Thailand) (IPT) 177 KTA (Bz) 20% PTT ICT Solutions Plat 1.8 MTA IPP program TOP 24% 144 KTA (To) 2-on-1 Gas-fired, (PTT ICT) 90 KTA (MX) Combined cycle Electricity 700 MW Mitr Phol Group 35% Padaeng 35% 30% Maesod Clean Energy Sugar Cane Based Ethanol Q1/09: 0.1 mn. L/D Core Refining Related Business & Value Enhancement Product Marketing / IT Support Operations Earnings Stability 5
TOP – – One of Region One of Region ’ s Leading Refineries TOP TOP – One of Region ’ s Leading Refineries ’ s Leading Refineries Nationally: • Largest, most complex & highly integrated. • The flagship refinery of the PTT group. • Advantageous site location (120 km east of Bangkok) – Close to the market. Total Refining Capacity = 1,042 kbd • Highly capable and experienced management / staff. Regionally: TOP (225 kbd) (275 kbd) PTT’s Flagship Refinery • One of the most complex in the region with TCU, HCU, BCP (120 kbd) FCCU, CCR and ISOM. Bangkok ESSO (170 kbd) • High operational flexibility from multiple-unit configuration. • High complexity ratios (Oil & Gas Journal / Nelson IRPC (150+65 kbd) RPC (17 kbd) Index – 8.6). RRC (145 kbd) • Top-ranked performance according to Shell’s and SPRC (150 kbd) Solomon’s benchmarking exercise: • High efficiency / utilization Gulf of Thailand • Low cash operating cost Well diversified earnings through significantly increase in subsidiaries’ contributions. 6 Source: PTIT Focus Special Annual Report 2004, except for capacity figure for RRC (based on RRC Offering Memorandum)
2006 Key Highlights 2006 Key Highlights Investment Operation & Commercial • All approved major projects progressed as planned. • Successfully increased refining capacity by 5 kbd • Engaged PMC for 500,000 L/D ethanol plant to 225 kbd from synergy project with TLB. (cassava-based) with an aim to complete project • Maintained high utilization of Refinery, TPX and specification and detailed cost estimate by Q2/07. maximized lube base production (after 1st major turnaround and by co-processing Hydrocracker • Signed JV agreement with PDI and Mitr Phol to bottom). study & develop 100,000 L/D ethanol plant (based on sugar cane) at Maesod, Tak to diversify • Maintained high integrated Refinery / TPX / TLB feedstock sources. margin through joint production planning, cooperation within PTT group, products Finance diversification and margin improvement program:- • Paid annual dividend of Bt 3.50/share (40% payout • Collaborated with PTT / RRC / IRPC for crude vs. min. stated 25%) & 1st interim dividend of Bt. sourcing and delivery, thereby reduced freight 1.50/share. costs, • Diversified sources of funds by issuing inaugural • Maximized jet production / export at the THB bond of Bt. 5,500 mn. (AA- Fitch’s) & Cross expense of diesel during flooding in Thailand, Currency Swap to US$. • Increased overall margin ~ US$ 0.50/bbl through • Successfully negotiated to reduce cost of existing Hydrocarbon Management Review (HMR) and domestic syndicated loans by ~ 1.375% or Bt. 72 other activities. mn./yr. • Repaired & reinstalled transformer 2 months ahead of plan and received satisfactory insurance • Prepaid, repaid & refinanced loans, thus lowering compensation (BI of Bt. 328 mn. & PD of Bt. 66 mn.). interests by ~ Bt. 134 mn. in 2006. 7
TOP Group’ ’s Integrated Margin s Integrated Margin TOP Group 733 (US$/T) +42% 732 576 575 527 403 399 402 398 371 PX – ULG 95 Plat Q1/06 Q2 Q3 Q4 FY/05 FY/06 (US$/bbl) 10.62 - 2 5 % Oil Products 6.62 Crude 4.96 4.65 GRM Mrk. Mrg. 2.70 Stock G/(L) 1.51 L/R Q1/06 Q2 Q3 Q4 FY/05 FY/06 688 (US$/T) +75% 624 687 526 623 481 579 525 480 LB - HSFO 331 Integrated Margin (US$/bbl) Q1/06 Q2 Q3 Q4 FY/05 FY/06 TOP Acct GRM TPX TLB 12.56 • TOP’s integrated refinery & petrochem 0.38 -8% operations lead to increased and more 1.57 8.39 7.69 stable margins. 7.00 6.37 0.24 0.64 1.53 • Group’s integrated margin stood at 0.54 4.57 0.81 2.09 1.82 10.62 $7.69/bbl, 8% reduction vs. 25% drop of 2.86 0.87 6.62 GRM. 2.19 4.96 4.65 2.70 1.51 8 Q1/06 Q2/06 Q3/06 Q4/06 FY/05 FY/06
Financial Highlights Financial Highlights Net Profit from Operation by Sectors – FY/05 & FY/06 EBITDA & Net Profit from Operation by Quarters (Bt. mn.) 29,003 -14%YoY Bt. 15,948 mn. Bt. 16,647 mn. 25,014 4,803 Q4 3,438 Power Power +4% YoY 11% 6% LB 9,737 16,647 5,993 15,948 LB 10% Q3 1,840 13% Refinery 2,521 PX 43% +4% 3,843 FY/06 FY/05 23% Q2 10,232 8,126 6,254 6,878 PX Refinery 3,531 33% 61% Q1 6,338 5,351 4,086 3,691 EBITDA 05 EBITDA 06 NP fr. Oper. 05 NP fr. Oper. 06 *Exclude other activities (Gain & Loss from Fixed Asset sold & Assets Impairment) Q4/06 - While GRM dropped significantly, subsidiaries (TPX, TLB & IPT) contributed strongly • to Group’s bottom line, Net Profit from Operation in Q4/06 was Bt. 1,840 mn. FY/06- Group's Net Profit from Operation increased marginally (by 4% YoY), thanks to • strong GRM in Q2/06 and robust PX & LB margins, especially in 2H/06. 9
Contents Contents • Company Overview • Business Outlook • Progress of Investment Projects • Consolidated Financial Performance 10
Regional Oil Demand/Supply Outlook Regional Oil Demand/Supply Outlook Asia Pacific Refining Capacity Additions Regional Oil Demand % Annual Jul'06 Kbd 2005A % Growth 2006F 2010F Growth Kbd 2006F 2007F 2008F 2009-10F Existing (2006-10F) China 6,492 4.3% 6,903 8,634 5.8% China 1) 6,791 41 6 386 666 550 Japan 5,102 0.5% 5,073 5,018 (0.3%) Japan 4,445 - - 56 - India 2,333 1.3% 2,524 2,858 +4.1% India 2,771 21 0 64 751 256 South Korea 2,237 0.9% 2,212 2,314 +1.1% Taiwan 1 ,265 28 - - - 2) Thailand 970 2.3% 1,009 1,112 +2.5% Thailand 1 ,042 - - 1 1 5 - Singapore 816 5.0% 866 1,105 +6.3% Pakistan 282 - 1 7 - - Vietnam 5 - - - 1 21 Others 5,207 1.1% 5,102 5,866 +3.6% Total Demand 23,157 2.0% 23,689 26,907 +3.2% Others 6,966 - 88 - 25 Total Supply 22,964 0.8% 24,221 27,316 +3.1% Total 23,567 654 555 1 ,588 952 1) Include Monkolia 20 kbd in 2007 2) The Company ME Sur/Def 1,305 1,502 1,786 Asia-Pacific Demand/Supply Balance • Delay of a few refinery projects in China Total Demand Total Supply Kbd and latest regional oil demand forecast 27,316 26,907 26,364 24,826 24,221 25,293 support tight supply up to 2010. 22,964 24,512 23,689 90% 23,157 • New refineries and expansions in M/E are needed to fulfill the gap, especially LPG, Naphtha and Fuel Oil. 2005A 2006F 2007F 2008F 2010F Source: FACTS, Fall 2006 11
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