-1- Thai Oil Public Company Limited Q1/19 Opportunity Day Presentation 21 May 2019 Time : 13.00 - 14.00 hrs. Venue : Stock Exchange of Thailand, Building B, Room 603
-2- -2- Disclaimer The information contained in this presentation is intended solely for your personal reference. 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. Some statements made in this material are forward-looking with relevant assumptions, which are subject to uncertainties, which may cause the actual result/performance to be materially deviated from any future result/performance implied by such forward-looking statements. Please note that the company and management/staff are not capable to control and guarantee if these forward-looking statements will be accurately materialized, they are subject to various risks and uncertainties.
-3- -3- Corporate Vision, Mission and Values Empower Human Life VISION through Sustainable Energy and Chemicals • To enrich stakeholders’ well -being and deliver sustainable returns MISSION built upon innovation, technology and resilient portfolio with top class management and accountable corporate governance Professionalism Excellent Striving Vision Focus VALUES Ownership & Commitment Initiative Social ResponsibilityIntegrityTeamwork & Collaboration
-4- -4- Corporate Governance Corporate Governance Policy Roles and Responsibilities The board of directors, management and all staff shall for Stakeholders commit to moral principles, equitable treatment to all stakeholders and perform their duties for the company’s interest • Truthfully report company’s with dedication, integrity, and transparency. situation and future trends to all Anti-Corruption Policy stakeholders equally on a timely manner. The Board, the management, and employees must not • Shall not exploit the confidential corrupt or accept corruption of all forms in any circumstances, covering the business of the Company in every country and in information for the benefit of every relevant agency. The Company defines guidelines, related parties or personal gains. operating measures, and roles and duties of responsible • Shall not disclose any confidential persons, as well as regularly monitoring and reviewing the information to external parties. implementation of the anti-corruption policy in compliance with changes in businesses, rules, regulations, and relevant laws. Whistle-Blowing Channels Chairman of the Board or cgcoordinate@thaioilgroup.com Chairman of the CG Committee or Should you discover any Chairman of the Audit Committee or +66-0-2797-2999 ext. 7440-7442 ethical wrongdoing that is CEO/President or Company Secretary not compliance to CG +66-0-2797-2973 Thai Oil Public Company Limited policies or any activity that 555/1 Energy Complex Building A could harm the Company’s http://www.thaioilgroup.com 11F, Vibhavadi Rangsit Road, interest, please inform: Chatuchak, Bangkok 10900
-5- -5- Our Achievement in Sustainable Development 6 th Consecutive Year as the Member of DJSI Emerging Markets and high ranked positions.
-6- -6- Presentation Agenda TOP GROUP BUSINESS OVERVIEW Q1/19 KEY HIGHLIGHTS Q1/19 PERFORMANCE ANALYSIS 2H/19 MARKET OUTLOOK
-7- -7- TOP GROUP BUSINESS OVERVIEW
-8- -8- Thai Oil Group Business Structure PTT 26.0% 100.0% 100.0% 74.0% 100.0% 100.0% Thai Paraxylene Thai Lube Base Thaioil Power Thaioil Marine Thaioil Ethanol Thaioil (TOP) (TPX) (TLB) (TP) (TM) (TET) 50.0% Aromatics Capacity: Lube Base Oil Sells Electricity/Steam to • 5 Oil & Chemical Tankers Sapthip (SAP) Paraxylene Capacity : Group Capacity : 22,800 DWT Capacity : 527,000 tons/annum Cassava Based Ethanol Base Oil • Crude Tankers: 3VLCCs 275,000 barrels/day Small Power Producer Mixed Xylene Capacity : 200,000 lts/day 267,015 tons/annum Capacity: 881,050 DWT Program 52,000 tons/annum Bitumen BCP 14 crew & utility boats Others • 3-on-1 Combined Cycle Benzene 350,000 tons/annum 21.3% (120 DWT each) 21.3% 57.4% Electricity 118 MW 259,000 tons/annum TDAE • 2 Large vessels for crude, Ubon Bio Ethanol (UBE) Steam 216 tons/hour Total 838,000 tons/annum 67,520 tons/annum feedstock & product Cassava/Molasses Based Plant storage and transportation Capacity : 400,000 lts/day TOP SPP 75.0% Mitsui 25.0% services capacity: 200,000 100.0% 100.0% DWT 2 Small Power Producers LABIX Company Limited Thaioil Energy Services • Ship management services Total capacity: 239 MW (LABIX) (TES) Steam capacity 497 T/H PTTOR 40.4% LAB producer and distributor Proceeds the business on COD 2016 Capacity: 120 KTA COD: 2016 9.2 % Others 50.4% various professional of Thaioil & management services TP 29.7% 100.0% 100.0% PTT 22.6% Thappline (THAP) Thaioil Treasury Center (TTC) PTTGC 22.7% Multi-product Pipeline Global Power Synergy Increases financial efficiency Capacity:26,000 m.lts/y Thaioil Solvent Public Company Limited of Thaioil group Through TOP Solvent (TS) PTT Group 85.0% 15.0% Principal power plant of PTT Sarn Palung Social PTT 40.0% 80.5% 100.0% Total Equity Capacity Enterprise PTTGC 20.0% 20.0% 1,922 MW of electricity IRPC 20.0% Supports execution of social Solvent distribute Sak Chaisidhi Top Solvent 1,582 tons/hour of steam PTT Energy Solutions enterprise of PTT group in Thailand (SAKC) Vietnam 2,080 Cu.m./hour of Industrial (PTTES) PTT Group 80.0% 20.0% Solvent manufacturer water Solvent distribute in Provides engineering PTT Digital Solutions Capacity : 141,000 12,000 RT of Chilled water Vietnam technique consulting services (PTT Digital) tons/annum Refinery Net Profit Contribution Aromatics 51% 24% 13% 12% Lube Base (Avg. from 2006 – Q1/19) Others
-9- -9- Q1/19 KEY HIGHLIGHTS
-10- -10- Key Highlights Q1/19 Key Market Drivers Highlights Soften refinery margins pressured by weak product spread pressured by Refinery Implication weak heating oil demand from mild winter and high gasoline inventory 1) Mkt GRM at 3.0 $/bbl worldwide. However, downside was partially offset by lower crude (Q4/18 = 3.9 $/bbl) premium from abundant light crude supply from U.S. 1) Include Margin and Productivity Rising crude price driven by OPEC & Non-OPEC production cut (1.2 MBD), Improvement 2) and decreasing Iran’s and Venezuela’s oil export due to U.S. sanctions. 2.7 $/bbl inventory gain (from stock loss (7.5)$/bbl in Q4/18) 2) Based on refinery intake Aromatics & LAB Slightly Soften Aromatics & Slightly soften aromatics contribution pressured by increasing supply 3) LAB Margins as Petro Rabigh (1.3 MTA) and Nghi Son (0.7 MTA) run at full capacity ( GIM contribution 2.0 $/bbl from and additional supply from China (0.8 MTA). However, ongoing weak 2.2 $/bbl in Q4/18) feedstock cost (gasoline & naphtha) helped support margins. 3) Aromatic contribution including LAB Lube Base Soften Lube Base Soften Base Oil spread pressured by additional base oil Gr. 2 & 3 Contribution supply mainly from China (1.26 MTA). ( GIM contribution 0.2 $/bbl from 0.4 $/bbl in Q4/18) $/BBL Q4/18 Q1/19 Market GIM 6.5 5.2 Refinery + Aromatics & LAB + Lube Base 4) Inventory Gains/ (Loss) (7.4) 2.7 Accounting GIM (0.9) 7.9 4) Based on integrated intake
Key Highlights -11- -11- Q1/19 Key Achievements Key Achievements Q1/19 TOP Group Net Profit Unit : million THB (MB) Maintain high reliable production Operational Net Operating Profit F/X Risk management gain/(loss) Stock gain/(loss) Excellence Q1/19 Q4/18 Others i.e. Hedging gain/(loss) & Reversal of Crude NRV /(Crude NRV) & Non-recurring items Adjusted to cost Refinery 116 % 115 % Q1/19 Q4/18 Q1/18 Aromatic 92 % 94 % 4,408 MB (4,812) MB 5,608 MB Base Oil 89 % 86 % Capture high local & Indochina sales 1,327 334 102 381 495 Q1/19 Q4/18 2,473 Local 87 % 87 % 4,013 3,835 Indochina 10 % 8 % 1,272 Other exports 3 % 5 % (37) (166) t Growth & AGM approved Energy Recovery Unit Profitability (7,211) (ERU) Carve out (USD 757 M) to GPSC , with Improvement vote 98.6%, to reduce total CAPEX & enhance return after carving out. (218) TOP’s rating is upgraded to BBB+ by S&P (852) after PTT’s SACP is uplifted (May 7). (544) Q1/19 FY/18 Sustainability & Awards BBB+ Baa1 AA- (tha) Included Stock G/L 1%11% 2% 2% Stable Outlook Stable Outlook Stable Outlook Refinery 22% Sustainability Member for Oil&Gas Industry Aromatic & LAB 40% 18% for 6 th consecutive years of DJSI Emerging Markets Lube Base 68% 11% NACC Integrity Awards 2018, The Office of Power the National Anti-Corruption Commission (NACC) 25% Others
Key Highlights -12- -12- Q1/19 Margin and Productivity Improvement (VS Corporate Plan) Cost Management 161 MB 73 MB General & Admin , Procurement & warehouse , Operation & Maintenance , Project & Manpower management Margin Improvement Unit: million THB (Hydrocarbon Management : HMR) and Productivity Improvement (Non HMR) Crude Enhancement 34% 234 734 Higher domestic 1,463 573 21% Q4/18 and Indochina Q1/19 sales/ better product premium 7% Plant optimization Energy improvement 1% * * THB 2,197 mn 7% Others THB 807 mn * Compared with Corp. plan
-13- -13- Q1/19 PERFORMANCE ANALYSIS
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