3q/13 analyst presentation - listed companypttgc.listedcompany.com/misc/presn/20131111-pttgc...start...

Olefins Refinery

Aromatics Polymers

HVS High

Volume Specialties

EO Based Performance

Green Chemicals

Services and Others

3Q/13 Analyst Presentation I1 Conference Room

November 8, 2013

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

Award and Recognition

3

Agenda

Mission to be Continued

Incidents Update & 3Q/13 Key Business Highlights

Excellence Program and Investment Update

3Q/13 Operating Results

Market Outlook

Appendix

4

Agenda





Market Outlook

Appendix

5


Bowon Vongsinudom

President and CEO

6

PTTGC’s Top Management Team’s Commitment

New Organization Structure to Support Growth (Nov. 1, 2013)

7

PTTGC Board of Directors

VP – Internal Audit

EVP – Polymers Business

Unit

SVP - High

Volume Specialties Business

Unit

EVP – EO Based

Performance

Business Unit

EVP – Green

Chemicals Business

Unit

EVP – Marketing, Commercial and Supply

EVP – Finance and

Accounting

EVP – Corporate Strategy

EVP – Strategic

Execution and Excellence

EVP – Corporate

Affairs

EVP – Organizational Effectiveness

EVP – Project Executive Director

Head – Science and Innovation

EVP – GPC Olefins

EVP – GPC

Refinery and

Shared Facilities

EVP – GPC

Aromatics

EVP – Engineering

and Maintenance

SVP – Quality, Safety,

Occupational Health and

Environment

Audit Committee CG Committee Risk Management Committee

Nomination and Remuneration Committee

President and CEO

COD – Down Stream Petrochemical Business COU – Up Stream Petrochemical Business

Agenda





Market Outlook

Appendix

8

Incidents Update – LDPE Shutdown

Recap: LDPE (capacity 300 KTA) shutdown since July 10, 2013 to repair cylinder of Booster/Primary Compressor. PTTGC expected to take approximately 3.5 months to repair the LDPE plant. Initial estimated impact of 2% to Net Profit.

Update: Start up on Sep. 26, 2013, which was earlier

than plan.

Resume with utilization rate of 77% in Oct. with target of over 100% for the remaining of the year.

In the process of doing Root- Cause Analysis

9

Incidents Update – Oil Spill

10

Recap: On July 27, 2013 leakage in the flexible hose was found at the SPM while discharging crude oil. The leakage resulted in oil spill of 54,341 liters. On and off shore cleanup operation was done quickly and effectively. Single Point Mooring (SPM) has been back in operation since August 15, 2013. Refinery operation was not affected.

Update: The oil spill incident expenses, including provision, for 3Q/13 was Baht1,059 mn.

Recovery and remediation expenses Baht 192 mn

Compensation and restoration expenses Baht 791 mn

Other expenses Baht 76 mn

PTTGC and the insurance company are in the process of negotiation of the reimbursement claim covered by the insurance company.

Incidents Update – PTT’s GSP#5

Recap: On August 14, 2013, thunder storm and lightning strike on the Waste Heat Recovery Unit or WHRU of PTT’s GSP#5 which is the gas supplier of I4-2 plant (capacity 450 KTA). PTT anticipated that the repairs will take approximately 3-5 months.

Update:

PTT’s GSP#5 is back to run at 50% and expects to run at 100% in early 2Q/14 and 100% back to normal operation by Aug. 2014.

PTTGC’s overall olefin utilization rate to be around 90% in 4Q/13.

11

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=5-keI_Cz4_LriM&tbnid=ucjyBhxzryP5nM:&ved=0CAUQjRw&url=http://www.pttplc.com/EN/About/Business/PTT-Owned-Business/Gas-Unit/pages/Separation-Plant.aspx&ei=tsF5UtaUHYX8iQfDwoHQDw&bvm=bv.55980276,d.aGc&psig=AFQjCNG0NkWoGK6I966rXFnQddD89lZ6NQ&ust=1383797520411074

70

80

90

100

110

120

130

Jan-

12Fe

b-12

Mar

-12

Apr-

12M

ay-1

2Ju

n-12

Jul-1

2Au

g-12

Sep-

12O

ct-1

2N

ov-1

2D

ec-1

2Ja

n-13

Feb-

13M

ar-1

3Ap

r-13

May

-13

Jun-

13Ju

l-13

Aug-

13Se

p-13

Oct

-13

Dubai

3Q/13 Business Environment and Operations Recap

12

THB/USD

USD/BBL

116.1 106.4 106.3 107.4 108.2 100.7 106.3 1Q/12 2Q/12 3Q/12 4Q/12 1Q/13 2Q/13 3Q/13

27.00

28.00

29.00

30.00

31.00

32.00

33.00

Jan-

12Fe

b-12

Mar

-12

Apr-

12M

ay-1

2Ju

n-12

Jul-1

2Au

g-12

Sep-

12O

ct-1

2N

ov-1

2De

c-12

Jan-

13Fe

b-13

Mar

-13

Apr-

13M

ay-1

3Ju

n-13

Jul-1

3Au

g-13

Sep-

13O

ct-1

3N

ov-1

3

31.0 31.3 31.3 30.7 29.8 29.9 31.51Q/12 2Q/12 3Q/12 4Q/12 1Q/13 2Q/13 3Q/13

Unrests in several oil producing countries supported Dubai crude price to average at 106 USD/BBL in 3Q/13, increased 6% from 101 USD/BBL in 2Q/13.

Rising oil price contributed to a stock gain&NRV of Baht 3,768 mn

Baht depreciated from US FED’s signal on QE tapering from avg. 29.9 Baht/USD in 2Q/13 to 31.5 Baht/USD in 3Q/13

Higher crude price pushes products prices up while mix margin among products

Most Products Price/spreads increased

Diesel-Dubai 17.32 USD/BBL +3% QoQ -18% YoY

PX-Cond 511 USD/Ton -5% QoQ +20% YoY

HDPE 1,489 USD/Ton +3% QoQ +11% YoY

MEG 1,143 USD/Ton -3% QoQ +7% YoY

Overall utilization rate of major businesses

3Q/12 2Q/13 3Q/13Refinery 101% 63% 98%Aromatics 90% 84% 91%Olefins 91% 93% 75%Polymers 102% 90% 88%MEG 93% 100% 92%Green - FA 116% 112% 139%Green - ME 84% 106% 129%Phenol 128% 127% 124%

Change in Price/Spread and Sales Volume

13

Product Price/Spread Changes Sales Volume Changes

9M/13 Sales Split Domestic : Export Volume

11%

74%

85%

38%

91%

64%

76%

89%

26%

15%

62%

9%

36%

24%

0% 20% 40% 60% 80% 100%

Phenol & BPA

Green

EO-based

Polymers

Olefins

Aromatics

Refinery

Domestic Export

3%

40%

5%

-13%

-32%

-5%

-9%

-9%

21%

-8%

5%

-41%

2%

61%

-60% -40% -20% 0% 20% 40% 60% 80%

Phenol&BPA

Green (ME&FA)

EO Based (MEG)

Polymer

Olefins

Aromatics (BTX)

Refinery

QoQ YoY

-8%

-13%

7%

11%

10%

27%

20%

-18%

0%

-1%

-3%

3%

5%

-21%

-5%

3%

-30% -20% -10% 0% 10% 20% 30%

Phenol-BZ

ME - CPO

MEG

HDPE

Ethylene

BZ - Cond

PX - Cond

Diesel - Dubai

QoQ YoY

Key Financial Highlights

14

3Q/13 Sales Revenue + 26% QoQ, -3% YoY EBITDA + 43% QoQ, -12% YoY Net Profit +130% QoQ, -25% YoY Adjusted EBITDA -2% QoQ, -18% YoY

9M/13 Sales Revenue -6% YoY EBITDA + 8% YoY Net Profit +7% YoY Adjusted EBITDA +5% YoY

145,309 111,887

141,394

418,216 394,590

-

100,000

200,000

300,000

400,000

500,000

3Q/12 2Q/13 3Q/13 9M/12 9M/13

Sales RevenueUnit: THB Mn

18,

581

11,

466

16,

388

41,

106

44,

273

15,3

06

12,8

88

12,6

19

40,6

09

42,5

69

-

10,000

20,000

30,000

40,000

50,000

3Q/12 2Q/13 3Q/13 9M/12 9M/13

EBITDA Adjusted EBITDAUnit: THB Mn

12,879 4,172 9,610

24,239 25,857

2.86

0.93

2.13

5.38 5.73

-

1.00

2.00

3.00

4.00

5.00

6.00

-

10,000

20,000

30,000

40,000

3Q/12 2Q/13 3Q/13 9M/12 9M/13

Net Profit EPS (Baht/Share)

3Q/12 2Q/13 3Q/13 9M/12 9M/13EBITDA Margin % 13% 10% 12% 10% 11%Adjusted EBITDA Margin % 11% 12% 9% 10% 11%

Agenda





Market Outlook

Appendix

15

1- Step Adjacencies

From Our Business Strategy to Our Execution

16

Operational Excellence

1 Marketing Excellence

2 Synergy Project

Excellence

3

Debottleneck

4 CAPEX

Excellence

5

Excellence Program New

Geo

grap

hies

N

ew P

rodu

cts

Core Uplift

PC

PU

China Marketing Activities

Polymers and Other HVS

Emerging Business Model

http://www.vencorex.com/

http://www.natureworksllc.com/

28 83 87 91 91 113

79 81 83 85 36 83

149 149 149 43

75 108 108

177

289

392 431 433

2013 2014 2015 2016 2017

Debottleneck (exclude PE expansion)

Synergy

Marketing Excellence

Operational Excellence

Excellence Programs 1H/13 9M/13 Target FY13

1. Operational excellence 1.1 7.9 28

- Reliability improvement - Energy efficiency improvement - Cost reduction

2. Marketing excellence 84.6 111.3 113

- HVP Sales Performance exceeded target - 7 New HVP Grades and 3 New Commodities Grades - Exported Mixed C4 - Export PE to alternative markets ie. South Africa3. Synergy projects 10.0 17.1 36

- EBITDA uplift in 3Q/13 was mainly contributed from C3/C4 Stream and 3 Streams (Heavy Gasoline, LCB, and CB) - Heavy gas (Offgas) - Construction Progress at 27.5% (End Sep) - Pure H2 via New PSA - Construction Progress at 83.2% (End Sep)4. Opportunity Synergy Benefits 0.0 13.1 0

- Biodiesel Export to China (B-100 from TOL blend with Diesel from Refinery) - Due to I-4/1 TA, transfer excess offspec Raw Pygas (normally flare) to upgrade at ARO2 - Due to I-4/1 TA, transfer excess offspec C3C4 from PTTPE Cracker to Refinery C3C4 pool for blending Total 95.7 149.4 177.0

Update Excellence Programs

17

Core Uplift 1-Step Adjacencies Emerging Business Models

Unit: USD mn

Target EBITDA Uplift of Excellence Programs and Synergy Projects 2013-2017

* Debottleneck EBITDA Uplift includes 1Q/14 BV project starts up 3Q/15 TOCGC Plant Improvement Project 4Q/15 PX expansion starts up

*

Debottlenecking Projects

18

TOCGC Plant Improvement Project Target to be completed by 3Q/15

Debottleneck - PTTPE Cracker • Target to be completed by 2016

2014 2015 2016

BV Project - C4 Value Enhancement Target to be completed by 4Q/13

Debottlenecking - PX capacity Target to be completed by 4Q/15

Quench oil tower modification project Completed since Sep. 2013

2013


Quench oil tower modification project

19

Quench Oil Tower Modification project at I4-1 olefins plant

• To reduce naphtha to gas portion in I4-1 mixed feed cracker

Naphtha : Gas

From 0.95 : 1.0

To 0.60 : 1.0

• Project completed during I4-1 plant turnaround in Aug-Sept 2013

• Passed Operational Test


Status Completed

CAPEX 3 MUSD

Vapor Flute

C4 Value Enhancement (BV Project) BV Project

20

BV Project will enhance PTTGC’s C4 value chain by upgrading to Butadiene and Butene-1, which will pave a way towards Butadiene derivatives

90% construction completed

C4 From

PTTGC’s Cracker

Butadiene Plant Synthetic Rubber

Customer 90% Domestic: 10% Export

Nameplate Capacity 75 KTA of Butadiene 25 KTA of Butene-1

Technology License ABB LUMMUS

Project Management Consulting PTTME

EPC Contractor Chiyoda (Thailand)

CAPEX 262 MUSD

EBITDA Uplift 58 MUSD/Year

Target Completed 4Q/13

Direction forward • Expand into Synthetic rubber business by using

butadiene from PTTGC and from JV Investment Plant

PTTGC LLDPE Plant

Butene -1

Butadiene


TOCGC Plant Improvement Project

21


EOE Capacity 336 KTA + Additional Capacity

90 KTA

Plant improvement to expand EOE capacity

• Improve catalyst usage to enhance production yield and also reduce CO2 emission.

• Increases EOE capacity by 90 KTA from 336 KTA to 426 KTA

• Additional EOE capacity will improve capacity of EO/EG depending on production mode.

• Progress: Detail Engineering and Long Lead Item Procurement

Purified EO

Ethylene Glycol (EG)

Additional Capacity 90 KTA of EOE

EPC Contractor Samsung Engineering

CAPEX 94.2 MUSD

EBITDA Uplift 16 MUSD/Year

Target Completion 3Q/15

PX Expansion Project

22


Increase PX and BZ capacity at ARO#2

• Board approved and EPC Awarded

PAREX

Additional Capacity 115 KTA of PX 44 KTA of BZ

EPC Contractor PTTME and SK Engineering

CAPEX 128.8 MUSD

EBITDA Uplift 34 MUSD/year

Target Completion 4Q/15 during ARO2 TA period

Aromatics (KTA) Existing

Debot. 2015

Total after Debot.

Paraxylene 655 +115 770

Benzene 346 +44 390

Orthoxylene 0 +20 20

PTTPE Cracker Debottlenecking

23


PTTPE debottlenecking with additional capacity of 12%

Downstream debottleneck expansion to capture fully-integrated margin by converting additional ethylene into downstream products

Adding 1 furnace to PTTPE cracker The additional volume of gas feedstock from

PTT will be ethane : LPG or 60 : 40

Additional Capacity of PTTPE Cracker

12% Increase

CAPEX 285 MUSD

Expected IRR 17%

Target Completion 2016

Additional Olefins

Capacity

Possible value added downstream • m-LLDPE • LLDPE Expansion

Phenol 2 Project “Road to PC/Nylon”

24

Phenol 2 Project will capture longer value chain of benzene and propylene. Pave a way towards downstream phenol derivatives. EHIA approved and start construction Financing: Project Financing Scheme, D/E 2:1

Nameplate Capacity 250 KTA of Phenol 155 KTA of Acetone

Technology License UOP

Project Management Consulting

Bechtel

EPC Contractor POSCO CAPEX 348 MUSD Expected IRR 17%

Target Completed 3Q/15

Our 1-Step Adjacencies Direction • Partner with global player • Seek joint sales/mkt in ASEAN • PC Compounding

Phenol Chain


JV with PERTAMINA

25

Competitive advantage over size and vicinity

World-scale integrated petrochemical complex covering upstream to downstream Pave a way towards HVS product offering Signed HoA in Apr 2013 and to sign JV agreement by

Dec 2013 Estimated investment of USD 4-5 bn Expected COD 2018

Updated Progress • Jointly Appointed Financial Advisor • Jointly Appointed Technical Advisor • Finalizing the detailed feasibility studies


http://www.google.co.th/url?sa=i&source=images&cd=&cad=rja&docid=DXCtDvnuGltCyM&tbnid=bWR6Yx4UHtAWwM:&ved=0CAgQjRwwAA&url=http://pankajoswal.wordpress.com/2013/04/&ei=pxZzUva1DIvLrQfay4HwBw&psig=AFQjCNEIP5PfHbwHw8MIii6xRLj6G8kUfA&ust=1383360551313408

Pieces of Jigsaw to our downstream aspiration

26

Vencorex to HDI to system house Expand HDI derivatives business in Thailand and HDI monomer in

France Restructure Business in France to enhance its competitiveness. Build PU system house with Partner in Thailand for niche market Seek for JV polyols and MDI

Sinochem to secure access to China downstream market Signed MoU to jointly explore potential collaboration e.g., PU and

PC chains and Bio-based chemicals Strengthen sales & market in China

Petronas to expand into PC and PO chain Expand downstream product portfolio (PC and PO chain) and

support HVS strategic initiative Signed HoA with Petronas and Itochu, target completion by 2017 for

feasibility study Estimated Investment of USD 2 bn, PTTGC expects to contribute

25% of the equity component


http://www.vencorex.com/

USD 4.5 Bn

USD 2 Bn from Debt Financing

USD 2.5 Bn from Cash Flows from Operation

CAPEX to Support Growth Approved and Uncommitted CAPEX Plan for year 2013 - 2017

27

31%

64%*

5% Core Uplift

1 Step Adjacencies

Green

USD 4.5 Bn Uncommitted CAPEX

USD 1 Bn secured from USD Bond Issued in Sep. 2012

Agenda





Market Outlook

Appendix

28

Refinery BU Performance

29

Market Price

-15

-5

5

15

25

3Q-12 4Q-12 1Q-13 2Q-13 3Q-13

Jet-Dubai Diesel-Dubai FO-Dubai

Sales Volume

USD/BBL 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13

Dubai 106 107 108 101 106

Jet-Dubai 20 19 20 15 17

Diesel-Dubai 21 20 20 17 17

FO-Dubai -2 -9 -7 -4 -11

1,400 1,469 1,410 876 1,204 1,454 1,226 920 780 781 1,482 1,503 1,946

1,087 1,953

10,084 9,862 7,952

5,421 5,804

- - -

-

2,543

2,235 2,447 2,420

1,349

2,358

1,159 1,203 1,536

544

1,512

-

5,000

10,000

15,000

20,000

3Q/12 4Q/12 1Q/13 2Q/13 3Q/13

Naphtha Reformate Jet Diesel Bio Diesel FO Others

Market GRM

Change in Price/Spread

Change in Sales Volume

Utilization Rate

% 3Q/12 2Q/13 3Q/13

CDU URate 101% 63% 98%

% Change QoQ YoY

Dubai 6% 0%

Jet-Dubai 11% -16%

Diesel-Dubai 3% -18%

Fuel Oil-Dubai -192% -333%

% Change QoQ YoY

Jet 80% 32%

Diesel 7% -42%

Total 61% -9%

USD/BBL

Kbbl

Unit: USD/BBL 3Q/12 1Q/13 3Q/13

Market GRM 5.94 2.38 3.48

CDU GRM 7.61 2.73 4.31

CRS GRM 2.73 2.38 2.90

Stock Gain/Net NRV 2.51 -2.92 4.21

Accounting GRM 8.47 0.69 8.68

Aromatics BU Performance

30

Market Price

800

1,000

1,200

1,400

1,600

1,800

3Q-12 4Q-12 1Q-13 2Q-13 3Q-13

Naphtha Condensate PX BZ

Sales Volume

P2F

Change in Price/Spread


Utilization Rate

% Change QoQ YoY

Condensate 7% 1%

PX-Cond -5% 20%

BZ-Cond -21% 27%

% Change QoQ YoY

BTX 2% -5%

% 3Q/12 2Q/13 3Q/13

BTX U-Rate 90% 84% 91%

USD/Ton 3Q/12 2Q/13 3Q/13

Market P2F 243 325 260

Stock Gain 41 -46 84

210 193 181 213 189

330 324 318 291 325

208 248 216 189 270

102 118 109 96

93

-

200

400

600

800

1,000

3Q/12 4Q/12 1Q/13 2Q/13 3Q/13

Benzene Paraxylene Ref+LN Other By-Products

USD/Ton

USD/Ton 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13

PX- Cond 426 605 669 539 511

BZ-Cond 259 431 430 415 329

KTon

*Benzene = BZ+Cyclohexane Paraxylene = PX + Other BTX

Olefins and Olefins Derivatives BU Performance

31

800

1,000

1,200

1,400

1,600

3Q-12 4Q-12 1Q-13 2Q-13 3Q-13

Naphtha HDPE LLDPE LDPE MEG

Market Price

Sales Volume

188 169 200 218 129 198 203 216 193 208

111 117 102 70 119 96 63 75

71 25

91 101 83 104 95

404 383 393 334 352

0100200300400500

3Q-12

4Q-12

1Q-13

2Q-13

3Q-13

Olefins HDPE LLDPE LDPE MEG Total PE

QoQ YoYEthylene 5% 10%HDPE 3% 11%LLDPE 4% 11%LDPE 9% 18%MEG -3% 7%

QoQ YoYOlefins 41% -32%HDPE 8% 5%LLDPE 70% 7%LDPE -66% -74%MEG -8% 5%

Change in Price

Utilization


USD/Ton

USD/Ton 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13

Naphtha 915 944 961 858 920

HDPE 1,343 1,393 1,482 1,443 1,489

LLDPE 1,341 1,399 1,477 1,433 1,490

LDPE 1,327 1,369 1,459 1,444 1,569

MEG 1,065 1,247 1,282 1,173 1,143

KTon

3Q/12 2Q/13 3Q/13

Olefins 91% 93% 75%

HDPE 100% 96% 106%

LLDPE 113% 72% 113%

LDPE 113% 99% 5%

MEG 93% 100% 92%

Phenol Performance

32

Market Price

Sales Volume

Change in Spread

Utilization


100

150

200

250

300

3Q-12 4Q-12 1Q-13 2Q-13 3Q-13

Phenol-BZ BPA-Phenol

USD/Ton 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13

Phenol-BZ 264 165 233 245 244

BPA-Phenol 212 189 268 188 128

34,407 40,988 37,842 34,436 24,099

32,880 34,827

25,128 41,751 44,946

-

20,000

40,000

60,000

80,000

3Q-12 4Q-12 1Q-13 2Q-13 3Q-13

Phenol BPA

3Q/12 2Q/13 3Q/13

Phenol 128% 127% 124%

BPA 36% 116% 116%

QoQ YoY

Phenol-BZ 0% -8%

BPA-Phenol -32% -39%

QoQ YoY

Phenol -30% -30%

BPA 8% 37%

USD/Ton

Ton

Refinery 8%

Aromatics 24%

Olefins and Derivative

61%

Green 3% HVS

1% Others 2.96%

Refinery 46%

Aromatics 22%


20%

Green 5%

HVS 6%

Others 0.03%

Refinery 8%

Aromatics 20%

Olefins and

Derivative 60%

Green 5%

HVS 3% Others

3.66%

Refinery 43%

Aromatics 22%


23%

Green 5%

HVS 7%

Others 0.05%

33

3Q/13 Revenue Breakdown (%)

3Q/13 Adjusted EBITDA Breakdown (%)

Adjusted EBITDA Margin % by Core BU

Segmental Results – 3Q/13 Olefins and Olefins Derivatives Business contributed greatly to EBITDA

9M/13 Revenue Breakdown (%)

9M/13 Adjusted EBITDA Breakdown (%)

THB 12.6 Bn

THB 42.4 Bn

THB 141 Bn THB

395 Bn

Unit:% 3Q/12 2Q/13 3Q/13Refinery 4 1 2Aromatics 9 12 8Olefins & Derivatives

27 28 26

Green 7 3 9HVS 7 -2 4PTTGC 11 12 9

Unit:% 9M/12 9M/13Refinery 3 2Aromatics 6 11Olefins & Derivatives

27 28

Green 6 7HVS 9 2PTTGC 10 11

3Q/13 Profit and Loss Statement

34

3Q/2012(Restate) 2Q/2013

THB Mn % THB Mn % THB Mn % THB Mn % THB Mn %1 Sales Revenue 145,309 100 111,887 100 141,394 100 (3,915) (3) 29,507 26 2 Feedstock Cost (119,602) (82) (87,594) (78) (116,522) (82) 3,080 3 (28,928) (33)3 Product to Feed Margin 25,707 18 24,293 22 24,872 18 (835) (3) 579 2 4 Variable Cost (5,136) (4) (6,204) (6) (6,211) (4) (1,075) (21) (7) (0)5 Fixed Cost (3,940) (3) (4,163) (4) (4,028) (3) (88) (2) 135 3 6 Stock Gain/(Loss) & NRV 3,275 2 (1,422) (1) 3,768 3 493 15 5,190 365 7 Gain/(Loss) Hedging Commodity (30) (0) 419 0 560 0 590 141 34 8 Other Income 1,311 1 1,362 1 1,235 1 (76) (6) (127) (9)9 SG&A (2,606) (2) (2,819) (3) (3,808) (3) (1,202) (46) (989) (35)

10 EBITDA 18,581 13 11,466 10 16,388 12 (2,193) (12) 4,922 43 11 Depreciation & Amortization (4,328) (3) (4,187) (4) (4,149) (3) 179 4 38 1 12 EBIT 14,253 10 7,279 7 12,239 9 (2,014) (14) 4,960 68 13 Financing Expenses (Net Interest Earned) (1,438) (1) (1,120) (1) (1,144) (1) 294 20 (24) (2)14 FX Gain/(Loss) 746 1 (2,726) (2) (738) (1) (1,484) (199) 1,988 73 15 Shares of gain/(loss)from investments 25 0 (22) (0) (54) (0) (79) (316) (32) (145)16 Corporate Income Tax (562) (0) 509 0 (708) (1) (146) (26) (1,217) (239)17 Net Profit After Income Tax 13,024 9 3,920 4 9,595 7 (3,429) (26) 5,675 145

Portion of Net Profit: 18 Shareholders 12,879 9 4,172 4 9,610 7 (3,269) (25) 5,438 130 19 Minorities 145 0 (252) (0) (15) (0) (160) (110) 237 94

20 Adjusted EBITDA 15,306 11 12,888 12 12,619 9 (2,687) (18) (269) (2)

3Q/2013 YoY QoQ

Note: Adjusted EBITDA = EBITDA – Stock Gain/(Loss) &NRV

9M/13 Profit and Loss Statement

35

THB Mn % THB Mn % THB Mn %1 Sales Revenue 418,216 100 394,590 100 (23,626) (6)2 Feedstock Cost (351,638) (84) (316,235) (80) 35,403 10 3 Product to Feed Margin 66,578 16 78,355 20 11,777 18 4 Variable Cost (12,271) (3) (19,318) (5) (7,047) (57)5 Fixed Cost (10,588) (3) (12,319) (3) (1,731) (16)6 Stock Gain/(Loss) & NRV 498 0 1,703 0 1,205 242 7 Gain/(Loss) Hedging Commodity 367 0 1,127 0 760 207 8 Other Income 4,128 1 3,921 1 (207) (5)9 SG&A (7,605) (2) (9,196) (2) (1,591) (21)

10 EBITDA 41,106 10 44,273 11 3,167 8 11 Depreciation & Amortization (12,290) (3) (12,288) (3) 2 0 12 EBIT 28,816 7 31,985 8 3,169 11 13 Financing Expenses (Net Interest Earned) (4,136) (1) (3,379) (1) 757 18 14 FX Gain/(Loss) 502 0 (1,478) (0) (1,980) (395)15 Shares of gain/(loss)from investments 84 0 (94) (0) (178) (212)16 Corporate Income Tax (618) (0) (1,419) (0) (801) (130)17 Net Profit After Income Tax 24,648 6 25,615 6 967 4

Portion of Net Profit: 18 Shareholders 24,239 6 25,857 7 1,618 7 19 Minorities 409 0 (242) (0) (651) (159)

20 Adjusted EBITDA 40,609 10 42,570 11 1,961 5

YoY9M/12 9M/13

Note: Adjusted EBITDA = EBITDA – Stock Gain/(Loss) &NRV

5.2

16.4

8.4 9.6 14.8 14.3

7.7 11.6

0.5

31.4

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

PTTGC PPCL Others

35 39

240 226

101 98

60 50

238 237

137 121

61 55

Strong Financial Position

36

Key Financial Ratios

As of Dec 31, 2012 As of Sep. 30, 2013

THB 413 Bn THB 436 Bn

Cash + ST Investment

CA

PPE

Non CA

Share holders’ Equity

IBD

Liab.

Statements of Financial Position Interest Rate Currencies

68 % Fixed 56 % THB

32 % Float 44 % USD & Others

Loan Type

• Cost of long term debts ~ 5.0%

(Include W/H Tax)

• Average loan life after refinancing -

5.0 Years

Treasury policy Net IBD to Equity ratio of ≤ 0.7x Net IBD to EBITDA ratio of ≤ 2.4x

Maturity of Financial Debt* as at 30 Sep., 2013

THB 121 Bn

THB Bn

ST Loan 3%

LT Loan 35% Deben

ture 62%

* After Refinance

1.34 1.06 0.98

1.18

0.32 0.25 0.26 0.30

0.0x0.2x0.4x0.6x0.8x1.0x1.2x1.4x1.6x

31 Dec.12

31 Mar.13

30 Jun.13

30 Sep.13

Net IBD / EBITDANet IBD/Equity

16.15% 16.39% 17.09% 16.11%

10.43% 11.13% 11.83% 10.50%

5%

10%

15%

20%

31 Dec. 1231 Mar. 1330 Jun. 13 30 Sep. 13

ROE ROA

Agenda





Market Outlook

Appendix

37

Key Market Trends in 2014

38

Dubai Crude oil prices is expected to average 104 USD/BBL in 2014

World Oil Demand should grow around 1.1 MMBD in 2014, while net additional of 2.25 MMBD refinery capacities will be added.

GRM should be pressure from these addition capacities.

Source: JBC, Nov. 2013

Key Market Trends in 2014 – Cont’

39

PX spread should be pressure from additional PX capacities in the beginning of 2014, however, should be ease from higher demand for PX from new PTA capacities

BZ spread is expected to maintain at high level from 2013 into 2014 due to the limited feedstock (Pygas) due to changes of feedstock in North America cracker from shale gas. BZ import into North America will grow

Source: IHS, World Petrochemical Conference

Key Market Trends in 2014 – Cont’

40

Global Ethylene supply & demand is expected to be tight in 2014 even though new capacities are being add into the market where global operating rate to be flat YoY at 87%

Global PE demand is still growing at 4.6% per year

HDPE price is expected to remain at high level from improving economic and less supply coming in 2014

Source: IHS, World Petrochemical Conference

41

For further information & enquiries, please contact our Investor Relations Team at [email protected]

Thank You

1 Thitipong Jurapornsiridee VP - Corporate Finance & IR [email protected] +662-265-85742 Puvadol Vasudhara IR Manager [email protected] +662-140-87123 Panugorn Puengpradit IR Analyst [email protected] +662-140-87144 Prang Chudasring IR Analyst [email protected] +662-265-83275 Chutima Jarikasem IR Coordinator [email protected] +662-140-8713

mailto:[email protected]

Agenda





Market Outlook

Appendix

42

434 407 402 495 448 448

390 374 345 439 415 468 474 496 453 431

961 858

920 917 896 895 868 876

1,395

1,265 1,322 1,412 1,343 1,343

1,258 1,250 1,306

1,297 1,336 1,385 1,370 1,392 1,322 1,307

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13 2Q/13 3Q/13 4Q/13F 1Q/14F 2Q/14F 3Q/14F 4Q/14F

Olefins Improved derivatives demand will support to Olefins market

USD/Ton Short-term Price Forecast Short-Term • Olefins prices were expected to remain high in

2H-13 due to improve demand in derivatives markets in line with new PE plants in Asia will come on-stream

• However , For year 2014 the market will be pressured from

1) Additional new supply in Asia (mainly from China)

2) Turnaround and shutdown for maintenance of Asia cracker

3) Global economic outlook show the sign of

recovery Long-term Supply/Demand

43

Additional (2013-2018) (Unit : MMT)

Supply Demand 39.80 35.05

America24%

Middle East19%

Europe5%

China35%

Other Asia17%

Source: CMAI October 2013

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

2013 2014 2015 2016 2017 2018

America Europe Middle East China Other Asia Additional demand

Unit : KMT

Reliance India 1,350 KMT Q1-16 to Q3-16

SINOPEC Wuhan CH 800 KMT Q1-11 to Q3-13

ExxonMobil SG 1,000 KMT Q3-11 to Q2-13

Sichuan PC China 800 KMT Q3-11 to Q4-13

Ilam Iran 458 KMT Q1-15 to Q1-16 OPAL India

1,100 KMT Q1-14 to Q3-14

CNOOC & Shell China 1,000 KMT Q1-16 to Q1-17

Sinopec Zhijin China 300 KMT Q4-14 to Q2-13

43

521 585 568 571 578 580 533

516 516 449

569 556 558 558 512 491 498

586 649 677

611 600 560 536

961 858 920 917 896 895 868 876

1,482 1,443 1,489 1,488

1,473 1,475

1,402 1,391 1,477

1,433 1,490 1,473

1,453

1,453 1,380 1,367

1,459

1,444

1,569 1,593

1,507

1,495 1,429 1,412

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13 2Q/13 3Q/13 4Q/13F 1Q/14F 2Q/14F 3Q/14F 4Q/14F

Short-term Price Forecast USD/Ton Short-Term • PE prices will be supported from

improved demand due to high manufacturing season in Q3-early Q4’13

• However, more new supplies from Asia especially in China will affect to PE markets in year 2014

Polyethylene The market will be pressured from new supply in the short term

HDPE Long-term Supply/Demand



America22%

Middle East24%

Europe8%

China40%

Other Asia6%

-5000

5001,0001,5002,0002,5003,000

2013 2014 2015 2016 2017 2018


Unit : KMT

Ilam Iran 300 KMT Q1-14 to Q1-15 SINOPEC Wuhan CH

300 KMT Q1-11 to Q3-13

Saudi Polymers Saudi 550 KMT Q3-11 to Q1-13

BPCL India 110 KMT Q3-13 to Q4-14

OPAL India 350 KMT Q1-13 to Q3-14


Shanxi Coking Corp China 150 KMT Q2-15 to Q2-16

44 Source: CMAI October 2013

LLDPE & LDPE New Capacities and Closures


LDPE Long-term Supply/Demand

LLDPE Long-term Supply/Demand





America20%

Middle East15%

Europe2%

China38%

Other Asia25%

America22%

Middle East30%

Europe11%

China27%

Other Asia7%

-5000

5001,0001,5002,0002,5003,0003,500

2013 2014 2015 2016 2017 2018 America Europe Middle East China Other Asia Additional demand

Unit : KMT

SINOPEC Wuhan China 300 KMT Q1-11 to Q3-13


OPAL India 350 KMT Q1-13 to Q3-14

Yulin Energy China 300 KMT Q2-13 to Q2-14

CNOOC & Shell China 300 KMT Q1-16 to Q1-17

Reliance India 550 KMT Q1-16 to Q4-16

-500

0

500

1,000

1,500

2,000

2013 2014 2015 2016 2017 2018


Unit : KMT

Borouge UAE. 350 KTA Q1-14 to Q3-14

Reliance India 400 KTA Q1-15 to Q4-16

45

Short-term Price Forecast USD/Ton Short-Term • MEG market will be driven up from stronger

demand in the downstream textiles and fabrics sectors in China due to high seasonal demand in 2H-2013

• For year 2014, the market remain robust continuously from previous year due to strong derivative demand from new Polyester plants in China will start up

375 351 284 325 380

460 519 551

961 858 920 917 883 882 856 863

1,395 1,265 1,322

1,412 1,343 1,343

1,258 1,250 1,282 1,173 1,143

1,242 1,253 1,333

1,337 1,363

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13 2Q/13 3Q/13 4Q/13F 1Q/14F 2Q/14F 3Q/14F 4Q/14F

MEG the market remain robust due to seasonal and strong derivative demand

MEG Long-term Supply/Demand



America11% Europe

5%

Middle East15%

India5%

China61%

Other Asia3%

46 Source: PCI August 2013

01,0002,0003,0004,0005,0006,0007,000

2013 2014 2015 2016 2017 2018

America Europe India Middle East

China Other Asia Additional demand

Petrochina Sichuan China 380 KTA Q3-13 to Q4-13

Ningbo Heyuan China 500 KTA Q4-12 to Q1-13

Unit : KMT Qianxi Coal Chem China 400 KTA Q3-13 to Q1-14

CNOOC China 450 KTA Q1-16 to Q3-16

46

Short-term Price Forecast Short-Term • Additional new supply in Asia and squeezed

PTA margins and high inventory levels among downstream Polyester market will affect the PX market in 2H-2013

• For year 2014, PX market still be pressured on more new supplies in Asia mainly from China

USD/Ton

657 551 528 546 541 526 483 474

961 858 920 917 896 895 868 876

1,618

1,409 1,449 1,463 1,437 1,422 1,352 1,350

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1Q/13 2Q/13 3Q/13 4Q/13F 1Q/14F 2Q/14F 3Q/14F 4Q/14F

Paraxylene Additional new supplies will pressure on PX market

PX Long-term Supply/Demand

47



Source: PCI August 2013

America2%

Europe3%

Middle East27%

India16%

China19%

Other Asia33%

01,0002,0003,0004,0005,0006,000

2013 2014 2015 2016 2017 2018

America Europe India Middle East China Other Asia Additional demand

Unit : KMT PetroRabigh Saudi. 1,400 KTA Q3-15 to Q3-16

SK Energy S. Korea 800 KTA Q3-12 to Q1-14

Tenglong Aromatics1 China 800 KTA Q2-12 to Q3-13

47

Short-term Price Forecast USD/Ton Short-Term • Benzene supply in 2H-2013 will depend

on the shutdown for maintenance of Aromatics plants and higher operating rate of Cracker in Asia due to high margin

• For year 2014, Benzene market will be depend on volatile crude and feedstock prices and improve derivatives demand from SM and Phenol market

428 429 336 311

367 344 398 314

961 858 920 917 896 895 868 876

1,389 1,287 1,256 1,227 1,262 1,239 1,266

1,190

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/13 2Q/13 3Q/13 4Q/13F 1Q/14F 2Q/14F 3Q/14F 4Q/14F

Benzene the market will still be driven by the main products



BZ Long-term Supply/Demand

Middle East12% Europe

2%

China26%

Other Asia59%


-500

0

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 2017 2018


Anqing PC China 54 KTA Q3-12 to Q1-13

Samsung Total PC S. Korea 422 KTA Q4-14 to Q3-14

Nghi Son Vietnam 246 KTA Q1-15 to Q3-17

ExxonMobil Sing. 340 KTA Q1-13 to Q2-13

Unit : KMT

Reliance India 260 KTA Q1-16 to Q-15

48

Short-term Price Forecast USD/Ton

Short-Term • Phenol market in 2H-2013 and for year

2014 remain continue to face rising cost and will be pressured from new additional supply in Asia, mainly from China

92 173 237 305 310 324 267 328

1,380 1,277 1,249 1,227 1,262 1,239 1,266

1,190

1,306 1,297 1,336 1,385 1,420 1,414 1,381 1,376

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1Q/13 2Q/13 3Q/13 4Q/13F 1Q/14F 2Q/14F 3Q/14F 4Q/14F

Phenol Will be pressured from high feedstock prices and new additional supply



Phenol Long-term Supply/Demand

Europe1%

China68%

Other Asia31%


-500

0

500

1,000

1,500

2013 2014 2015 2016 2017 2018


Unit : KMT

INEOS/Yangzi PC China 400 KTA Q3-14 to Q1-16

FCFC China 300 KTA Q4-13 to Q3-14

SSMC China 250 KTA Q4-13 to Q3-14

Kumho P&B S. Korea 300 KTA Q3-14 to Q1-15

49

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