IRPC Public Company Limited Opportunity Day: 2Q17 & 1H17 Result - PowerPoint PPT Presentation

IRPC Public Company Limited Opportunity Day: 2Q17 & 1H17 Result 24 August 2017

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Agenda 2Q17 & 1H17 Highlight Operation & Financial Performance Project Update Industry Outlook 3

Financial Highlight: 2Q17 & 1H17 Performance Better MKT GIM from higher U-rate after TA though soften spread and stock loss from lower crude price Overview of Business 53 50 51 43 Dubai (Avg.) 37 Unit: $/bbl 1Q17 2Q17 Crude run KBD 182 116 194 184 155 Planned Planned 2% Net Sales 1% TA TA (net excise tax) YoY 23% Net Sales YoY 10% +35% QoQ 35% (net excise tax) 29% 78,721 86,796 32% 36,866 49,930 36,866 49,930 Unit: MB 40,471 MB MB 66% 70% Market GIM($/bbl) 13.39 15.69 13.58 13.54 14.33 EBITDA 11% 16% EBITDA YoY 39% YoY 26% 23% 27% Unit: MB QoQ 4% 9,859 +4% 3,549 3,706 7,255 6,107 MB MB 3,706 3,549 62% 61% 6% -10% 17% Net Income 18% YoY 67% YoY 47% Net income QoQ 48% 6,720 Unit: MB -48% 3,706 3,594 2,365 1,228 2,365 MB MB 1,228 76% 93% 2Q16 1Q17 2Q17 1H16 1H17 Petroleum Petrochemical Utilities and Others 4

Net Income: 2Q17 vs 1Q17 Operating profit improved from volume increase & efficiency improvement but margin drop Net Income: 2Q17 vs 1Q17 Unit: MB 3,461 2,000 283 992 829 2,365 173 191 2,202 1,178 Impair. 198 Reversal FX gain 456 1,228 Net Stock 152 832 52 Gain/(Loss) 2,202 Operating Profit  151% 1,024 879 Operating Profit Operating Net Profit Volume Margin Everest Selling Depre. Others Operating Stock Loss FX. Gain Non- Net Profit 1Q17 Increase Decrease Project Exp. + Tax & Hedging Decrease operating Profit Other Rev. 114 1 Q17 = ( 1,090 ) 2Q17 OPEX Income Tax 217 +LCM Tax 2Q17 Sales Qty. 2 Q17 = ( 1,919) 1Q17 = 681 MKT. GIM (Exclude PTTGC) (Exclude 2Q17 = 1,673 1Q17 = 11.06 Mbbl 1 Q17 = (3,503) Everest) 2Q17 = 17.31 Mbbl 1Q17 = 5,245 2 Q17 = (3,786 ) 2Q17 = 6,756 (Deduct Volume 3,461 5

Highlight Everest Project : 1H17 Performance Key Area Unit: MB of EBIT Y2017 (Target) 1H17 Actual Operations Area 2,560 • Maximize energy efficiency and reduce loss in production units • Improve efficiency and effectiveness of maintenance 841 • Reduce production unit downtime and minimize operating days lost Integrated Supply Chain • Optimize crude selection, product blending and hydrocarbon stock 1,348 816 • Enhance throughput & yield by adjusting production unit parameter Commercial Area • Maximize commercial value generation from refined petroleum and 1,921 petrochemical products 395 • Asset Port and Tank management Procurement Area • Optimize timing, duration and cost of turnaround • Spend optimization with key expenditure categories 177 99 • Optimize small CAPEX spend for highest value expenditures Corporate Area - Non HR $ • Budget management • Optimize planning and policies to ensure continued productivity 281 81 enhancement Corporate Area - HR • Develop capabilities to sustain both performance and health 716 • Improve organizational health practices for top quartile outcomes 123 6 Total 7,003 2,354

Improvement after Turnaround Benefit after turnaround ~ 1,000 MB per year with one time CAPEX of ~300 MB Capacity Fouling T/A Energy Yield Objective increase Prevention extension Saving Increase 1 Increase capacity 150 to 165 KBD  ADU 2 Internal column  Increase diesel yield by separation   retrofit (165 KBD) efficiency and product purity 2 Energy saving from fuel gas  ADU2 and Reformer consumption reduction  Unit (RFM) heater Add future process coil at  efficiency improvement convection section Reduced temperature of stack  3 Improve crude inlet temperature  ADU2 Energy (CIT): Improve crude preheat train improvement by   from 248 ˚ C to 274 ˚ C Pinch technology Online cleaning for heat exchangers  4 Extend Catalyst life 2.5 to 4 years  Diesel Kerosene & Reduce shutdown time Treating Unit (DK)   Install new feed distributor and new  reactor internal retrofit quench section EXAMPLE Reformer Unit (RFM) heater efficiency improvement 7

Achievement & Awards “ SET Sustainability Awards 2016 “3 Asian Excellence Awards 2017” “Bronze Class Sustainability (Outstanding) ” Asia’s Best CEO  Award 2017” by the Stock Exchange of Thailand Asia’s Best CFO  by RobecoSAM Asia’s Best IR Company  by Corporate Governance Asia “Best Investor Relations Awards “The Prime Minister's Industry “ NACC Integrity Awards 2016 ” (SET AWARDS 2016)” Award 2016” by the National Anti-Corruption by the Stock Exchange of Thailand by the Ministry of Industry Commission “The Best Corporate in Asia 2016 : “Popular Stock Awards 2016” “Asia Responsible Entrepreneurship Asia’s Outstanding Company by Stock News Daily and the Stock Awards 2017” In Corporate Governance” Exchange of Thailand Investment in People Category • by Corporate Governance Asia journal by Enterprise Asia 8

Agenda 2Q17 & 1H17 Highlight Operation & Financial Performance Project Update Industry Outlook 9

Petroleum Group : Sales & GRM Increasing Sales volume after TA; Slightly decrease GRM derived from Refinery’s spread Sales Volume & Revenue Market GRM Sales volume (M.bbl) YoY  14% YoY  11% QoQ  57% Crude intake 17.0 16.6 16.2 17.3 10.4 17.6 33.6 28.0 29.1 M.bbl 25.9 3.8 2.8 15.8 15.6 15.2 14.5 13.9 Lube Base 10.1 1.7 1.7 2.0 1.6 1.8 25.3 23.1 1.1 Unit : $/bbl 13.9 14.1 13.2 12.9 Refinery 12.1 9.0 6.0 5.4 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 5.0 4.8 4.6 4.6 4.1 1.4 2.8 4.0 YoY  28% YoY  14% Revenue (MB) 2.7 2.4 2.5 2.5 QoQ  43% 2.1 2.6 Lube Base 4.0 20,981 23 ,354 24 ,221 29,792 21,405 30,314 44,335 51,719 Refinery 3.2 3,985 3,734 3,368 3,717 2,939 4,440 7,719 7,379 Lube Base 2.4 2.3 Refinery 2.1 2.1 2.0 1.4 24,966 27,088 27,589 33,509 24,344 34,754 52,054 59,098 Petroleum 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 Sales Distribution  2Q17 : Petroleum revenue 43% increase QoQ: 57% volume increase vs 14% price decrease  2Q17 1Q17 28% increase YoY : 14% volume & price increase   2Q17 Market GRM was $4.6/bbl: $0.2/bbl decrease from 1Q17 due to lower refinery spread  $0.6/bbl increase from 2Q16, from higher Diesel & FO spread  Export Export 38% 38%  1H17 : Petroleum revenue Local Local 62% 62% 14% increase YoY: 25% price increase vs 11% volume decrease   1H17 Market GRM $0.4/bbl decrease from 1H16 due to the refineries ’ turnaround  during 1Q17 Top 5 Export Destination in 2Q17 : Singapore, Malaysia, Cambodia, Laos, Japan 10

Petrochemical Group : Sales & PTF Higher sales volume after TA; Spread went down especially in Styrenics Sales Volume and Revenue Market PTF ($/bbl) YoY  9% YoY  8% Sales volume (KMT) QoQ  40% 742 680 Olefins & 407 Unit : $/bbl 404 397 378 389 364 406 Polyolefins 283 9.7 8.6 224 196 237 8.3 226 212 8.0 Aromatics 7.5 169 7.2 335 6.7 274 & Styrenics 6.2 182 163 180 160 152 Olefins & 114 5.7 5.3 Polyolefins 5.1 5.9 5.4 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 4.9 5.7 3.8 Aromatics 4.0 3.3 & Styrenics 2.9 Revenue (MB) YoY  15% 2.4 2.4 2.1 1.8 1.5 YoY  6% QoQ  21% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 Petro- 12,471 12,573 13,292 13,780 11,951 14,472 25,043 26,423 chemical 6 ,781 7 ,497 8,058 7,445 6,798 8,361 14,277 15,159 Olefins Crude intake Aro. & 17.0 16.6 16.2 17.3 10.4 17.6 33.6 28.0 5,690 5,076 5,234 6,335 5,153 6,111 10,766 11,264 (M.bbl) Styrenics 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 Sales Distribution 2Q17 : Petrochemical revenue  21% increase QoQ: 40% volume increase vs 19% price decrease  1Q17 2Q17 15% increase YoY: 9% volume increase & 6% price increase  2Q17 Market PTF was $8.0/bbl  $1.7/bbl decrease from 1Q17 due to lower product spread  $0.3/bbl decrease from 2Q16 due to lower Olefins spread  Export Export 38% 1H17 : Petrochemical revenue Local  44% Local 56% 6% increase YoY: 14% price increase vs 8% volume decrease  62% 1H17 Market PTF was $8.6/bbl  $1.1/bbl increase from 1H16 due to higher Styrenics spread  11 Top 5 Export Destination in 2Q17: Japan, Hong Kong, Singapore, Australia, UAE