GC SET Digital Roadshow Stock Exchange of Thailand 20 March 2019 1
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
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PTTGC Sustainable Development WORLD MEMBERS IN CHEMICALS SECTOR FOR 6 th CONSECUTIVE YEAR 4
Agenda 2018 Highlight 01 Strategic Direction 02 5
Agenda 2018 Highlight 01 Strategic Direction 02 6
2018 Key achievement Another record year of net profit of 40,069 Million bath DPS • Full year benefit from realizing JV performance from asset injection deal, which closed in July 2017. • Enhance performance from surging in Phenol, Acrylonitrile and PP chain. 2018 Maintain high operating rate in all major units Achievement REF 102% ARO 93% OLE 101% POL 100% (103% in 2017) (80% in 2017 ) (96% in 2017 ) (113% in 2017) Execution of downstream integration • Acquisition of PTA 970KTA and PET 147KTA • JV in PA9T and HSBC business • Acquisition of Rotomolding Compound 61KTA Achieved sale target in CLMV Achieved polymer Achieved polymer sale volume through JV in 7 sale volume > 250KT Myanmar ~3KT in the past year
Strengthen production home base Efficiency enhancement • Achieved MAX target of 10,800MB • Kick off digitalization module • Establish GC Treasury Center for fx management and USD fund raising • Production flexibility of LLDPE/HDPE in 1H19 Market Strategy & Intelligence • Establish Customer Solution Center to support marketing strategy to grow as a Sustainable partner with customer Growth Expand market portfolio in high growth region • Joint venture in Myanmar with strategic partner • Establish sale office in Myanmar and Vietnam • Establish logistic business in Vietnam Sustainable development 3Rs Concept (Reduce / Reuse / Recycle) Fashion Items Bio- 8 packaging
Overview of Business Performance Adjusted EBITDA Revenue MB MB Note : ** Adjusted EBITDA refers to EBITDA excluding impact of oil stock value *** Reported only portion attributable to the Company and actual realization after the asset injection Dividend Payment 9
Strong Financial Position Statements of Financial Position • Cash & ST Investment (54 billionTHB) and private fund Dec 31,2018 Dec 31,2017 and inhouse management of 6.8 billion THB at the end 469 Bn 435 Bn Cash +ST of 2018. 54 69 Investment Liab. 55 57 90 CA 97 • In 2018, the interest bearing debt is 61% on fixed rate 85 IBD 98 and 39% is float rate. THB debt is a major portion of PPE 245 57% of our debt profile, while 43% is in USD, mainly 220 Share 303 280 Holder’s from US Bond. Equity Non CA 80 75 Cash Flow • 2018 CAPEX still based our core investment from ongoing projects, including ORP, PO (GCO) ,Polyols THB Bn 28 (GCP). 54 27 • The repayment profile is around 10 billion THB per 55 54 year on average but 2021 will increase from THB bond retirement (4-yr, 3.05%), as well as 2022 will increase from USD bond maturity. Beginning Cash + Operating Cash CAPEX Financing Ending Cash + • The average loan life is ~3.43 years with average cost of S/T Investment Flow S/T Investment long term debt ~3.85%. Note : Private Fund and In house management around 6,800MB 10
Agenda 2018 Highlight 01 Strategic Direction 02 11
Strategic Direction To be a Leading chemical company for Better living Sustain Core Accelerate Growth levers Balance Business & Social Value Business Competitiveness International hub Sustainable development ▪ ▪ • Sustain benefit by Performance chemicals Effective CSR programs ▪ ▪ implementing Max infinity Green business Stakeholder management ▪ ▪ • Digitalization * Business / Technology / i.e. Digital assets / Data analytical / Digital People Transformation workforces / Cross-function collaboration • Launch new organization of Governance Risk and Compliance (GRC) 12
Long term strategic execution Strategic investment through the value chain • Constructing new 1.1MTA of new capacity • Project progress • ORP ~32% (COD 2H20) • Propylene oxide ~36% (COD 2H20) • Polyols ~41% (COD 2H20) • KRR COD 2022 • Considering investment opportunity through Joint venture, Green field and M&A Opportunity to strengthen International strategic Future opportunity investment base investment in green business • Opportunity in bio complex in • Explore opportunity in • Explore opportunity in EEC and Thailand international strategic alignment with policy investment in the region that • Balance portfolio and align with can support existing value • Resource preparation for global trend i.e. potential chain or new market investment roadmap i.e. GC Estate investment in recycle plant, COD opportunity in both green for land preparation of ME II in Q1’19 field and M&A 13
Downstream Integration GC continue to have more present in downstream business through extending the value chain Establishment of Joint Venture Company “Kuraray GC Advance Material Co.,Ltd ”. Extending Acquired share in SMPC and TPRC to capture downstream opportunity propylene value in aromatic chain chain by investing in PO and JV in polyols project Acquired share in RGL for rotomolding compound business 14
Consistent Volume Growth Committed investment project SMPC: PTA (970 KTA) TPRC: PET (147 KTA) PO/Polyols (330 KTA) RGL: Rotomolding compound (61KTA) Modification LLDPE to swing Olefins Reconfiguration PA9T : 13 KTA plant for HDPE production Digit gitaliza lizati tion (750 KTA) HSBC : 16 KTA ME Plant 2 (200 KTA) 2022 2019 2020 2021 Digit italiza alizatio ion Potential investment and project under study Biocomplex EO-Based Expansion Olefins Performance Chemical & Material Derivatives & derivatives 15
Key Global Trend Plastic Ban What we are doing? BioPlastics Development Shift from film Create Awareness PBS PLA 16
Agenda Appendix 17
Maintenance Shutdown Schedule 2019 2019 Plant Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OLE Cracker 15 HDPE1 HDPE HDPE2 20 LDPE 15 12 POL LLDPE I LLDPE II HIPS 10 PS GPPS 15 EOB TOCGC 43 Phenol I 22 PHN Phenol II 12 BPA REF Refinery 54 Aromatics I 53 ARO Aromatics II 18
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