Thai Oil Public Company Limited Presentation to Investors “ PTT Corporate Day” arranged by Deutsche Bank 23-24 January 2006
Disclaimer: The information contained in this presentation is intended solely for your personal reference only. Please do not circulate this material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any action in reliance upon it. 2 CONFIDENTIAL – NOT FOR DISTRIBUTION, NOT AN OFFER OF SECURITIES
Content I) Highlights II) Business & Operations Update III) Consolidated Financial Results IV) Investment Projects V) Conclusion 3
4 I) Highlights
Thaioil Group Thaioil Group Petrochem/ / Petrochem Refinery Power Transportation Refinery Power Transportation Lube Base Lube Base OIl OIl PTT 26% JPOWER 19% Thaioil Thaioil 9% 55% 100% 100% 100% (TOP) (TOP) Thai Paraxylene Thai Paraxylene Thai Lube Base Thaioil Power Thai Lube Base Thaioil Power Thaioil Marine Thaioil Marine Thappline Thappline (TPX) (TPX) (TLB) (TP) (TLB) (TP) (TM) (TM) Capacity: Current: 220 Kbd 3-on-1 Combined A fleet of 5 oil & Multi-product Capacity: Capacity: cycle petrochemical Pipeline Mid 07: 270 Kbd Current:348 Kt/y (PX) vessels with int’l Electricity 118 MW Lube Base oil: Capacity: 26,000 Mid 07: 853 Kt/y total classifications 270 Kt/y Steam 168 T/hr mn Litres/Y. TOP Info: Total capacity: Utility Supply to 408 Kt/y (PX) # of shares: 2,040 mn approx 30,000 DWT Group Mkt Cap: ~US$ 3.4bn 160 Kt/y (Bz) Mkt Cap Ranking: 7 136 Kt/y (To) Independent Independent 149 Kt/y (MX) 56% Power (Thailand) Power (Thailand) Shareholder structure (IPT) (IPT) PTT 49.54% PTT 20% Free float 43.28% 2-on-1 Gas-fired, Others 7.18% Combined cycle Thaioil 24% Electricity 700 MW Related Business & Core Refining Value Enhancement Product Marketing Support Operations Income Stability 5 5
Financial Highlights (Bt Mn) 9M/05 9M/04 FY04 +/- 9M/04 1. Sales Rev. 182,030 130,317 184,801 +40% 2. EBITDA 24,201 18,364 25,494 +32% 3. Profit Bef. Tax 16,633 11,063 18,040 +50% 4.Tax (3,157) (1,014) (2,967) +211% 5. Net Profit 13,476 10,049 15,073 +34% 6. EPS (Bht/share) 6.61 5.29 7.82 +25% 6
Significant Increased Contributions from Subsidiaries Significant Increased Contributions from Subsidiaries 9M’05 9M’04 Power Transportation Power 4% Transportation 4% 0% Petrochem/ 1% Lube Base* 15% +40% Refinery Refinery Sales Revenue Sales Revenue 95% 81% Bt. 182 bn bn. . Bt. 182 Bt. 130 bn bn. . Bt. 130 Transportation * acquired 100% in Oct’04 Power 4% Power 1% 1% Petrochem/ Lube Base* 27% +34% Refinery Refinery Net Profit Net Profit 99% 68% Remark: % is based on total amount Bt. 13 bn bn. . Bt. 13 Bt. 10 bn bn. . Bt. 10 Before deducting inter-company transaction. 7
8 II) Business & Operations Update
Thaioil Refinery Simplified Process Diagram LPG ADIP 70 RON LPG ISOM Isomerate Light 21,500 89 RON CDU Overhead HDT-1 Naphtha Mixed Xylene MX * MX Heavy HDT-2 Light Plat 34,300 Naphtha CCR-1 95 RON HDT-3 IN-LINE Platformate 50 RON CCR-2 74,900 ULG 95 103 RON BLEND 50,000 CC Gasoline CDU-1 91 RON ULG 91 Crude 72 RON CDU-2 NGL Kerosene KMT CDU-3 JET 2,400 Gas Oil KEROSENE LVGO 205,000 FCCU HDS-1 10,300 HVU-1 TC Kero/GO Long Residue Light Cycle Oil HDS-2 HVU-2 o r HDS-3 e Waxy GAS OIL HVU-3 K Imported LR 74,000 C 95,000 H Waxy HCU-1 Short Residue TCU HC Gas Oil 19,300 HCU-2 Distillation/Separation TC Waxy 47,600 Conversion/Upgrading Heavy Cycle Oil Treating BATCH FUEL OIL TC Residue 9 BLEND * Sold to TPX in Apr’05 9
One of the Most Complex Refineries in Asia Pacific One of the Most Complex Refineries in Asia Pacific Upgrading- -to to- -Refining Ratio Refining Ratio (1) (1) Upgrading (%) Higher conversion ratios yield higher refining margins Higher conversion ratios yield higher refining margins 70% 67% 40% 39% 39% 38% 31% 24% 24% 18% 18% Thaioil Caltex Singapore Reliance BPCL S-Oil Indian Oil SK Corp ESSO Petron Zhenhai Australia Petroleum Malaysia Refining (2) Hydrotreating- -to to- -Refining Ratio Refining Ratio (2) Hydrotreating (%) (%) Thaioil can meet new environment specifications at lower cost Thaioil can meet new environment specifications at lower cost 92% 65% 43% 43% 42% 41% 29% 27% 22% 18% 9% Thaioil S-Oil Singapore BCP SK Corp ESSO Petron BPCL Caltex Zhenhai Indian Oil Petroleum Malaysia Australia Refining Source: 2004 Oil and Gas Journal, The Company (1) Hydrocracking, catalytic cracking, thermal cracking, catalytic reforming and isomerization capacities divided by total crude distillation capacity (2) Hydrocracking, hydrotreating and hydrodesulfurization capacities divided by total crude distillation capacity 10
One of the Best Performing Refineries in the World Shell Worldwide Annual Benchmarking 2003 2004 Operating Cost Index Annualized Operational Maintenance Availability Costs Maintenance Effort (Based on Headcounts) Utilization High maintenance effort and Personnel Index is offset by low labor costs. CEL Avg. Personnel Cost Corrected Energy Loss Shell Personnel Index (Based on Headcounts) 11 11
Tight Domestic Oil Demand/Supply Oil Production by Refinery 1) Domestic Oil Demand / Refinery Intake 11-Month 2005 11-Month 2005 KBD 90% 90% KBD 217 88% 1200 90% 86% 84% 85% 1000 925 920 (Intake) 911 900 144 862 80% 34 88 85 141 121 121 66 800 126 70 92 32 101 75% 67 600 70% 50 65% 9 400 764 765 745 731 712 60% Total 200 55% Thaioil Esso RRC SPRC TPI BCP RPC Country 0 50% 913 230* 153 139 139 178 62 12 Intake (Kbd) Q1/05 Q3/05 11M/05 Q2/05 2004 86% 105% 90% 92% 92% 83% 52% 58% Utilization Oil Demand Feed for Petrochem Net Export % Utilization rate (rhs) Source: Company � Local refineries run at 90% in Q3/05. However, operating rate reduced to 86% for 11M/05, reflecting shutdown of RRC/SPRC in Oct. � Oil demand for 11M/05 is appx. 745 kbd, 2% rose from 2004. Drop in local demand was seen in Q3/05 as a result of rainy season, flooding and high oil price after the oil subsidy removal in Jun. Note 1) Exclude feedstock for petrochemical plant 12
Refinery Intake and Production � With multiple cracking and treating facilities, Thaioil Thaioil Thaioil’ Thaioil Thaioil’ ’s ’s s Crude Mix and Product Yield s Crude Mix and Product Yield Crude Mix and Product Yield Crude Mix and Product Yield has flexibility to select most economical crude Domestic capitalizing on the favorable sweet and sour Crude Mix Product Yield Demand differential to optimize refinery operation. 14% 19% Others � 2005 Average Oil Prices 28% Light 33% 6% 38% 6% Far East Distillate Dubai Tapis TP- -DB DB ULG 95 Diesel Fuel Oil Dubai Tapis TP ULG 95 Diesel Fuel Oil 49.32 49.32 57.90 57.90 8.58 8.58 62.10 62.10 64.03 64.03 40.31 40.31 56% � Upto 80% of crude from Middle East (whose prices 80% Middle 56% Middle 75% 53% East are more attractive than Far East sweet grade) are normally processed. 16% 11% Heavy 9% � LR purchased from BCP during the first 9 months 11M05 2005 2004 was about 9 kbd on average. US$/bbl Tapis 60 � Thaioil could process higher Far East and local Dubai crude due to better quality when price differential 50 between M/E-F/E became narrow (i.e. in Q3/05). 40 � Middle distillate was produced to meet local demand 30 4 M M 5 M M J S N J S N (represents about 50% of Country's demand). 0 0 0 J ' 2 J 13
Refinery Customers Breakdown Refinery Customers Breakdown FY 05 � Appx 49% of products was sold to PTT at the Shell/Caltex, Other 14% Independent market prices. (Domestic 42% and Export 7%). Export, 14% domestic, 15% � About 14% of products was sold to Shell and BCP Caltex (Marketing). While Sales to other 4% customers was 15%. TPX 11% � Although the export in Q3/05 increased due to PTT, 49% Including 7% export of PTT rainy season and slow domestic demand US$/bbl growth, overall export for 2005 was only 14% Jet 79 (compared with country export of 17%). 69 Diesel � When export, Thaioil switched to produce more 59 Jet fuel at the expense of diesel due to its more 49 favorable price. 39 4 A O 5 M A M A S N D F J J S 0 0 ' l J ' u J 14
Oil Prices Movement and GRM Oil Prices Movement � Strong demand and tight supply supported high oil US$/bbl 80 prices during the first 9M. Gasoline 70 � Hurricanes in US and slow recoveries of US Diesel 60 refineries fueled gasoline, diesel and other oil Tapis 50 prices in Q3. Oman 40 Fuel Oil � Delayed and warmer winter in The States, coupled 30 with high stock pile post Katrina weakened prices 20 in Q4/05. 4 M M S 5 M M S J N J N 0 0 ' ' n n a a J J Thaioil’s GRM (incl. MX) � Dipped in Thaioil’s GRM in Q2/05 was due to US$/bbl softening product price in May (high US inventory). 8.52+1 10 7.9+0.7 8.75 � GRM in Q3/05 rebounded as a result of Katrina. 6.55+1 7.50 8 � Regional GRM was pressured In Q4/04, due to 6 warmer weather, stock up in US, prompt high VLCC 4 freight as well as lackluster demand from high oil 2 price (after subsidy reduction/removal in certain 0 countries). Q1/05 Q2/05 Q3/05 FY/04 9M05 15 * Transfer MX to TPX as from April 1 2005 * Transfer MX to TPX as from April 1 2005
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