GC SET Digital Roadshow 29 November 2018 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
Vision and Mission 3
PTTGC Sustainable Development FOR 6 th CONSECUTIVE YEAR 4
Agenda Business Overview 01 Strategic Direction 02 5
Business Overview 8 Business Units PTTGC by the numbers 10.2 Million ton of petrochemical capacity AROMATICS OLEFINS POLYMERS REFINERY 280 KBD of Petroleum Refining Capacity 1 The largest ethane cracker in Thailand EO BASED GREEN PC PHENOL BUs Contribution 8 Business units with Fully integrated 5% 3% 5% 1% 16% 5% 3% petrochemical and refinery operations 21% Adj 48% Revenue 16% EBITDA 3 Rank in DJSI World Member in Petrochemical 56% 20% 6
Business Overview Competitive Cost Structure Strategic location and integrated through value Highly competitive cost structure from having Gas chain in Map Ta Phut area Profit Sharing concept is based on the integrated margin from gas to HDPE. Margin split based on equitable return on investment of PTT and PTTGC Derives to Located in 5 industrial estate PTTGC’s Gas Price Formula in nearby area, 27 sites Dividend Business Unit Adj. EBTIDA Margin 70% 61% 50% 49% 46% 45% 45% 34% 2.50 1.78 1.30 2.45 1.30 1.80 1.37 1.68 1.75 1.75 1.62 1.50 1.05 0.95 1.00 2011 2012 2013 2014 2015 2016 2017 2018 7 1st Half 2nd Half Payout Ratio
Overview of business unit performance Q3/2017 YoY QoQ 9M/2017 YoY (Unit: Million Baht) Q2/2018 Q3/2018 9M/2018 (Restate)* % +/(-) % +/(-) (Restate)* % +/(-) Sales Revenue 104,583 128,923 136,712 31% 6% 318,002 386,574 22% EBITDA 15,994 18,574 17,634 10% -5% 46,886 52,517 12% EBITDA Margin (%) 15% 14% 13% -2% -2% 15% 14% -1% Share of profit of investments in JV and Associates 875 1,515 1,967 125% 30% 3,870 5,506 42% (Profits attributable to Owners of the Parent)*** 875 1,515 1,967 125% 30% 1,656 5,506 233% Net Profit 9,955 10,828 12,793 29% 18% 29,740 36,008 21% EPS (Baht/Share) 27% 18% 20% 2.23 2.40 2.84 6.66 7.99 Adjusted EBITDA** 15,032 15,902 16,830 12% 6% 46,517 49,051 5% Adjusted EBITDA Margin (%) 14% 12% 12% -2% 0% 15% 13% -2% Note: * Restatement to include Assets injection of 6 companies, retrospect to 1 January 2016 ** Adjusted EBITDA refers EBITDA excluding impact of oil stock value *** Reported only portion attributable to the Company and actual realization after the Asset injection Market GRM BTX Margin OLE & Derivative Operating Rate EBITDA (%) $/bbl $/T Q3'17 Q3'18 96% 185 28% Olefins 8.08 98% 113% 247 26% Polymer 6.44 97% Q3'17 Q3'18 Q3'17 Q3'18 Q3'17 Q3'18 82% Aromatics 94% Q3/18 net profit increased 2,838 MB or 29% YoY mainly from; 103% Refinery 1. Adj EBITDA increased by 1,798 MB mainly from Aromatics and Phenol 102% 2. Share of gain from JV&Associates: increased 1,092 MB especially from PTTAC as better AN and MMA price , also supported by healthier performance from NatureWorks. 0% 50% 100% 150% 3. Stock gain/(loss) decreased 158 MB (Q3/18 gain of 804MB vs. Q3/17 gain of 962MB) 8
Performance comparison YoY Unit : MB 389 291 1,292 72 12,793 1,716 FX Gain/(Loss) Others Stock Gain/(Loss) & 9,955 Sharing from Q3 ’ 18 = 167 NRV&Commodity Hedge Subsidiaries, Q3 ’ 17 = 239 Q3 ’ 18 = 578 JV & Associate Operating Profit Q3 ’ 17 = 967 Q3 ’ 18 = 2,102 from main BUs Q3 ’ 17 = 810 Q3-17 Q3-18 • Overall operating profit from main BUs in Q3/18 was higher than Q3/17, mainly from OLE & Derivatives has improved from increasing in price of all major product i.e. polyethylene, MEG and ethylene price. In o addition, the selling volume of polyethylene is increased by having additional LLDPE capacity since March 2018.. ARO performance recovered as a result of higher P2F on BTX by 62 $/T from an increasing of PX spread as well as higher sales o volume due to higher utilization rate at 94% in Q3/18. Refinery performance slightly decreased from lower Gasoline and Fuel oil spread along with higher crude premium. o Sharing from JV & Associate was increased from performance of asset injection company, especially PTTAC from better AN o and MMA price , also supported by healthier performance from NatureWorks. 9
Strong Financial Position Statements of Financial Position • Cash & ST Investment (49 billionTHB) and private fund Sep 30,2018 Dec 31,2017 and inhouse management of 7.9 billion THB at the end 456 Bn 435 Bn Cash +ST of Q3/18. 49 Liab. 68 Investment 55 57 93 CA 91 86 IBD 98 • In Q3/18, the interest bearing debt is 63% on fixed rate and 37% is float rate. THB debt is a major portion of PPE 231 55% of our debt profile, while 45% is in USD, mainly 220 Share 297 280 Holder’s from US Bond. Equity Non CA 83 75 Cash Flow • Q3/18, the major capex has been based on announced investment mainly from ongoing projects which are THB Bn ORP, PO&Polyols project and land acquisition. 22 45 29 • The repayment profile is around 12 billion THB per year on average but 2021 will increase from retirement 55 49 of THB bond (4-yr, 3.05%), as well as 2022 will increase from maturity of USD bond. Beginning Cash + Operating Cash CAPEX Financing Ending Cash + S/T • The average loan life is ~3.54 years with average cost of S/T Investment Flow Investment long term debt ~3.77%. Note : Private Fund and In house management around 7,900MB 10
Agenda Business Overview 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 Project MTP retrofit Performance chemicals Olefins Reconfiguration Green business Project MAX Improve productivity Project Asset Injection Effective CSR programs Enhance business clarity & Maximize integration Stakeholder management 12
2019 Key Development DOWNSTREAM CIRCULAR SINGLE USE CLMV MARKET DIGITAL INTEGRATION ECONOMY PLASTIC STRATEGY CIRCULAR SINGLE USE CLMV MARKET DIGITAL ECONOMY PLASTIC STRATEGY 13
Downstream Integration Acquired share in RGL for rotomolding compound business GC continue to have more present in downstream business through extending the value chain Acquired share in SMPC and TPRC to capture downstream opportunity in aromatic chain Establishment of Joint Venture Company “Kuraray GC Advance Material Co.,Ltd ”. Extending propylene value chain by investing in PO and JV in polyols project to penetrate into PU chain in Asian region 14
Strategic Direction : Consistent volume growth Committed investment project PO/Polyols (330 KTA) SMPC: PTA (970 KTA) TPRC: PET (147 KTA) : 26% (plan 21%) & 25% (plan 22%) progress RGL: Rotomolding compound (61KTA) Olefins ME Plant 2 (200 KTA) Reconfiguration (COD Q4/18) Modification LLDPE II to swing (750 KTA) : 30% (Plan plant for HDPE production LLDPE II (434 KTA) 28%) progress tion Digit gitaliza lizati (COD 1 st Mar) 2018 2019 2020 Potential investment and project under study Expansion Olefins Biocomplex Performance Performance EO-Based & derivatives Chemical in C4 Materials in Derivatives i.e. HOA of GGC Chain i.e. JV in PA9T, Olefins chain i.e. Signed HOA on US i.e. HOA in Softanol petrochemical project HSBC 15
Digitalization enhancing productivity on top of MAX Digital use cases MAX initiatives Asset Performance Management Operating Target 10,500 MB Cost Saving CRM Furnace ion Robot for Digit italiza ization Supply Chain management finance Optimization Packaging Cost Reduction Turnaround Advance analytic management for operation 2019 Onwards Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Optimize Improve (F) (F) (F) (F) (F) Product work efficiency Advance analytic Portfolio Material for commercial People foundation movement Knowledge Organization Health Index (OHI) management 2019 2016 2018 Onward Digitalizatio Di ion roa roadmap EBIT 150 M$/yr by 2022 16
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