drives us toward further success

GDP

DRIVES US TOWARD FURTHER SUCCESS

Projects Update

Industry Outlook

Appendix

Performance Highlight

2

• Dividend Payment• CAPEX Plan• Company Profile• Financial Performance

Strategic Direction

5141

53 5170

3

Key Performance

17,033 17,430 20,420

13,890 17,809

Net Sales (net excise tax)

Unit: MB

EBITDAUnit: MB

Performance by Business

Net ProfitUnit: MB

Petroleum Petrochemical Utilities & Others

Net Sales(net excise tax)

Dubai (Avg.)Unit: $/bbl

199,595 168,349

197,594

139,151

194,686

9,402 9,721 11,354

6,841

9,362

2015 2016 2017 9M17 9M18

Crude Run (KBD)183 209170180

TA (1Q17)

183

EBITDA

Net Profit

Market GIM ($/bbl) 14.0 13.0 13.414.6

Acct. GIM ($/bbl) 12.5 12.8 15.5 14.9

14.5

YoY 17%

YoY 17%

YoY 17%

15.3

YoY 40%

YoY 28%

YoY 37%

Net Stock G/(L)($/bbl) 0.3 1.9(1.5) (0.2) 1.0

2017 performance improvement after project completion9M18 better NI due to higher U-Rate

27%

61%

12%

9M18

40%

51%

9%

71%

28%

1%

194,686MB

17,809MB

9,362MB

4

Financial PositionImproving Financial position driven by better performance after project completion

Maturity of Long-term Debt

Debt ProfileStatements of Financial Position

Cash Flow

Unit : MB

Unit: MB

PP&E

Other Non-CA

Cash

184,544

Other CurrentLiabilities

LT Liabilities incl. current port.

Shareholders’Equity

Dec. 2017

Other CA

Other Non-Current Liabilities

Cash Flow from

Operating

Unit: MB

Cash Flow from

Investing

Cash Flow from

Financing

Financial Ratios

< 1.0x

Net D/E CA/CL

0.660.75 0.65

2015 2016 2017

0.99

0.76 0.96

2015 2016 2017

0.74 0.69

9M17 9M18

0.85 1.00

9M17 9M18

128,324 126,970

8,637 9,220

45,438 52,753

2,145 2,336

87,650 88,996

2,378 2,537

55,812 51,347

38,704 48,399

Sep. 2018

191,279

Beginning Cash

1 Jan 2018

Ending Cash30 Sep 2018

699 3,734 6,358 6,438

17,416 1,936

4,516

3,363

6,887

699

7,098 8,294

13,325

21,932

2018 2019 2020 2021 >2021

THB Bond

USD Loan

THB Loan

Remark: Long-term debt as at 30 Sep 2018

Net Debt = 61,412 MB

Ex. Rate = 32.58 Baht/$

ST Loan20%

LT Loan (USD)10%

LT Loan (THB)54%

Bond (THB)16%

Float 84 THB 66

Fixed 16 USD 34

Currency (%) Interest Rate (%)

40

50

60

70

80

90

Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19

BRENT Dubai

5

2018 Key Highlights vs Lowlights

Highlight Lowlight

Utilization Rate: above 95%

Full year benefit

Higher Crude Premium & Stock loss

Gasoline Max. Project

PP compound & specialties (PPC)

PP Expansion Project (PPE)

Equity benefit

IRPC Clean Power

$/bbl Crude Oil Prices

(2)

(1)

1

2

3

Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19

Premium on Arab Light

Projects Update

Industry Outlook

Appendix


6


Strategic Direction

7

UHV project : Major CAPEXImprove product yield and earnings

IRPC’s refined Production Yield

Upstream project for Hygiene & Value-added Products

Objective : Upgrade low value to high valued-added products

Investment : $ 1.1 bn

COD : Jul. 2016

Benefit : GIM 1.5-2.0 $/ bblAssumption : Spread propylene to FO ~ 500-600 $/ton

RDCC unit Feed Cut-in

@ Jun 16 COD @ Jul 16

HYVAHL unit Feed Cut-in

HS-ATB @ Jul 16 COD @ Jul 16

Performance Guarantee Test RDCC run 100%

@ Oct 2016

Plant Acceptance

(PAC)

Jan 2017

43%

78%

95%

2016A 2017A 2018F

Upgrade to High Valued-Added products

131

123

163

367

220

326

74

HSFO

LPG

Ethylene

HYVAHL

Propylene

Naphtha

FO/FG

Middle Distillates

RDCC

C4 Raffinate III

Internal use & Loss

Unit : KTA

16%

5%

23%

9%

9%

26%

12%

Flow Diagram

LSFO

UHV

Designed Yield

23%8% 11%

4% 4%

14%

10%

15%

12% 10%

40%

38%

45%

47% 48%

5%

10%

8%

9% 12%

16%

21%

16%18% 16%

2%

5%3% 5% 5%

6%1% 4% 4%

2% 1% 1%

IRPC IRPC+UHV IRPC2015A

IRPC2017A

IRPC2018F

Ethylene

Propylene

LPG

Naphtha

Gasoline

Diesel/JetFuelLube Oil

Fuel Oil

Designed Yield

8

Project UpdateGasoline Max. : Better than target, Cat. Cooler construction on schedule

Gasoline Maximization Project UHV Catalyst Cooler in RDCC plant

CAPEX : ~ 800 MB

IRR : ~ 80%

Benefit : GIM: 0.4$/bbl

COD : Nov.2017

Results:

Gasoline volume increase 35 mn liters per month, higher than target of 25 mn liters

Demin

RDCC Plant

ERU

PRU Unit

PNU Unit

Prime G Unit

Ne

w c

olu

mn

GasolineBlending Pool

~ 25 M.Litres/month

C2’s

C3’s

C4’s

Naphtha

Modification

Modification

Poly-gasoline (C8’s)20 t/hr. to gasoline pool

Heavy Oligomerate (C12+’s)5 t/hr. to RDCC

HCN (benzene <0.5 volume%) 27 t/h Gasoline pool

Benzene rich cut 8 t/h

LCN

ERU – Ethylene Recovery Unit PRU – Propane-Propylene Splitting Unit PNU – Naphtha Oligomer Unit Prime G – Naphtha Hydro-treating Unit

CAPEX : ~ 1,320 MB

IRR : ~ 35%

Benefit : GIM: 0.3$/bblConstruction Progress : 82% (As of Dec 18)

1st Tie-in be completed in Sept. 2018 2nd Tie-in and shutdown for main equipment

installation by Feb. 2019 for ~ 28 days COD: ~ 1Q19

Project Objective : Crude selection more heavy crude More electricity & steam

9

PPE&PPC Benefit EnhancementFulfill UHV benefits thru higher margin on PPE & PPC

Random PP• Pipe grade• Hygiene

Super Clear PP• Container box• Medical Device

Block-CO PP• Household Material• Heavy-duty

HOMO PP• Film application• Fiber grade

PP Specialty•Frozen food packaging•Lamination•Health care

PP Compound• Automotive:

pumper, instrument panel, etc

PPE 160 KTA PPC140 KTA

Total PP 775 KTA in 2017

PP Existing 475 KTA

PP Expansion and PP Compound Project

CompoundingHouse

PP inline compound

Lower cost : PPC production by Inline process technology

Note: Cost Saving • No Packing & Logistic• No 2nd Extruder Process

PP Marketing Strategy : Sales Plan

Y2017

Volume: 600 Ktons

Y2022

Volume: 760 Ktons

PP Expansion Project (PPE) Licensor : Novolen Capacity : 160 KTA PMC : Foster Wheeler, EPC : Sinopec

• CAPEX : $ 236 mn• GIM 0.8-1.0 $/bbl• COD : 4Q17

Top polypropylene producers in south-east Asia

2014 2015 2016 2017 2018

ExxonMobil Singapore 860 860 860 860 860HMC Polymers Thailand 755 755 810 810 810IRPC Thailand 475 475 475 775 775TPP Thailand 720 720 720 720 720TPC Singapore 625 625 625 625 625Chandra Asri PC Indonesia 480 480 480 480 480Polytama Indonesia 386 386 386 386 386Lotte Chem. (M) Malaysia 373 373 373 373 373Nghi Son Viet Nam - - - 185 370JG Summit PC Philippines 185 185 185 185 185

Unit : KTA

Source : IHS

Random PP4%

Homo PP75%

Block-CO PP

21%

PP Compound11%

Random PP10%

Homo PP58%

Block-CO PP21%

PP Compound & Specialties (PPC) Licensor : JPP Capacity : 140 KTA PMC : Foster Wheeler EPC : Sinopec

Gasoline Max. Project

10

Project Update : UHV and PPE & PPC

2017 2019

UHV Project Catalyst Cooler Project

0Benefit to GIMUnit: $ per bbl

UHV 2017: 1.35 $/bbl2018F: 1.97 $/bbl

PP compound & specialties (PPC)

PP Expansion Project (PPE)

Catalyst Cooler

UHV value added

Flexibility of crude selection

Utility from cracking

heavy crude molecule

CAPEX : ~ 1,320 MB

COD : ~ 1Q19

GIM 0.3$/bbl

Increase UHV benefit Maximize Gasoline Yield Reduce Thailand import CAPEX : ~ 800 MB Capacity:25 mn litre/month

GIM 0.4$/bbl

Gasoline Maximization

COD : Nov. 17

PP Compound

Capacity: 140 KTA

CAPEX : 5,323 MB

GIM0.4$/bbl

COD : Sept. 2017

Capacity:160 KTA

CAPEX : 2,799 MB

GIM0.4$/bbl

PP expansion

COD : Dec . 2017

PPE 2017:0.13 $/bbl2018F: 0.50 $/bbl

PPC2017: -2018F:0.31 $/bbl

Cat. Cooler2018: -2019F: 0.3$/bbl

MC Plan : Feb 19 COD Plan : End 1Q19

UHV & UHV value added &

PPE & PPC

Total Benefit to GIM: $/bbl

2017: 1.54$

2018F: 3.17$

2019F: 3.47$

Upgrade low value to high value-added products 2016 U-Rate: 43% CAPEX : ~ $ 1.1 bn

GIM 1.5-2.0 $/bbl

UHV

COD : Jul. 16

Gas Max. 2017: 0.06 $/bbl2018F: 0.39 $/bbl

2016

Projects Update

Industry Outlook

Appendix


11


Strategic Direction

12

IRPC Strategic Roadmap to 2020Power of Growth, Power of Digital & Power of People: “GDP”

Capacity Before After

Propylene (UHV)

412 KTA 732 KTA

2010

2014

Margin Improvement

• Operational Excellence

• Commercial Excellence

• Procurement & HR

Excellence

Benefit +135 MUSD

INDIVIDUAL OWNERSHIP

SYNERGY

PERFORMANCE EXCELLENCE

INNOVATION

RESPONSIBILITY FOR SOCIETY

INTEGRITY & ETHICS

TRUST & RESPECT

Projects Completion

• Operational Efficiency Improvement

• Asset Utilization Enhancement

• Product and Service Improvement

• Capacity and Products Expansion

Incremental Margin and Organization Health

• Capability Building

• Owner mindset & Performance

Orientation

• Cultural Changes

Fully Integrated PP

Revenue Growth of 5%

EBITDA Growth of 10%

1st Quartile ROIC in Petroleum

and Petrochemical Industry STRONG

Member of DJSI Emerging

Markets Universe


PP (PPE&PPC)

475 KTA 775 KTA

20172016


CHP I

- Electricity

- Steam

PRP

EBSM

108 MW

200 T/hr

312 KTA

200 KTA

328 MW

620 T/hr

412 KTA

260 KTA

BIG LONG

Leading Integrated Petrochemical Complex in Asia by 2020

Power of GrowthG

Power of DigitalD

Power of PeopleP

13

GDP: From Aspiration to Execution

Power Three : 3 Pillars for achieve Top Quartile in 2020

Power of Digital

Power of People

Truly embedand live the IRPC DNA

Develop next generation of Top

30 leaders

Continue to establish lean, fit-for-purpose organization

P

Power of Growth Maximum

aromatics for competitiveness

Growth byM&A

Everest forever for sustainable growth

Drive R&D excellenceG

100MUSD

100MUSD

OPS 4.0Smart

Operation (AI)

ISC 4.0Integrated

Supply Chain

CCM 4.0Customer

Centric Digital

ERP 4.0ERP

Transformation

PRO 4.0Lean

procurement

100MUSD

D

MARS - Maximum Aromatics

Reformer Benzene

300-500 KTA

Paraxylene

1,000-1,300 KTA

Naphtha PX

Project:

Aromatic

Complex

Internal use

& Export

Export

Naphtha

Treating

unitHCN

Toluene, Xylene, HA

Internal use

& Export

Other Products: LPG, Raffinate, Raw

Hydrogen, Fuel Gas

200 KTA

CAPEX: $1.1 bn - $1.3 bn IRR 14%-16%

Petrochemical Yield 17% Existing + UHV

Petrochemical Yield 27% >>

Key Rational

• Utilize excess Naphtha

/Toluene/Xylene as feedstock to

maximize PX and BZ products

• Cost competitiveness

thru new technology

• Affirmed PX demand growth:

CAGR: 4% - 5%

G

Maximum Aromatic Project : MARSTo increase Petrochemical Yield

COD:1Q23

Feasibility study and Technology selection

Basic Engineer Design Package/FEED

Construction

202320192017 20202018

EPC

BOD acknowledged on project economics

Early 2019 BOD final approval on EPC Bidding by mid 2019

14

15

Strategic Initiative – Everest Forever (E4E)To reach 100 MS benefit within 2020

1,870 1,870 1,870

2,456 2,456 2,456

4,736 4,736 4,736

1,1602,440

3,300

491498

491

288

2018

498491

2019

288498

288

2020+

E4E

ISC

OPS

CCM

Corp-Non HR

PROC

Corp-HR

OHI: Organization Health Index >> 86

1st Quartile OHI

xx

1st Quartile OHI

(EBIT)(EBIT)

(EBIT)

‘Maintain top quartile OHI’

Unit: MTHB

EBIT10,300

EBIT10,300

EBIT10,300

Target

(100 MS)

G

16

Refinery Regulation ConcernIMO regulations to start in 2020 which benefit to LS refinery as IRPC

Source : PIRA SPS 2017

1.5%

1.0%

4.5%

3.5%

0.5%

Jan-200.1%

IMO implements

new Sulfur spec

Timeline of changes in Sulfur Emission RegulationIMO to cut global SF limits from marine fuels : 3.5% 0.5%

Global Bunker Demand, MMBD

Source: FGE’s Flash Alert 2 Feb’ 18

Consequence effects

Demand of gasoil for marine bunker blending support gasoil spread,

It is expected gasoil-FO spread will increase from 15-18$/bbl to 35-40$/bbl

Though, lower fuel oil price bring back power generation demand

Higher gasoil price and lower fuel oil price support light crude demand and push Dated/Dubai spread from 2$/bbl to 7$/bbl

3.54

1.25

1.30

2.56

1.00

0

1

2

3

4

5

6

2019 2020

HSFO Gasoil LSFOGlobal Bunker Demand, MMBD

LSFO

17

Asian Product Crack Outlook

Source: FGE Source: FGE

Positive impact from IMOStronger diesel/gasoline spread the highest GRM in 2020

Light & Middle distillate cracks is expected to soar to compensate fallings of HSFO cracks after IMO bunker standards be implemented

Complex refining margins will be pushed to level never be seen in more than a decade at $12/bbl

Asian Refining Margins Outlook

18

Positive impact from IMOStronger diesel/gasoline spread the highest GRM in 2020

Asia crack spreads

$/b

bl

International crude oil pricing

Co

nsta

nt

20

17

do

lla

rs p

er

ba

rrel

Global bunker fuel demand distribution

Consequence effects

Asian product cracks and crude oil differentials will start rising from 2H2019 ahead of IMO implementation

It is expected gasoil-FO spread will increase from 15-18$/bbl to 35-45$/bbl

Though, lower fuel oil price bring back power generation demand

Higher gas oil price and lower fuel oil price support light crude demand and push Dated/Dubai spread from 2$/bbl to 7$/bbl

19

E4E : Initiatives projectCapture more benefit thru LSFO project

CAPEX : ~1MUSD (modify pipeline)

Production : ~ 40-60 mn liters per month

Margin improved : ~ 0.45$/bbl or

~40 MUSD per year

COD : 2H19

Targeted Year : Y2020 & Y2021

Price Assumption to Study IMO effect.Low Sulfur Fuel Oil Project

ADU

VDU

RDCC

Hyvahlin UHV

DCC

SEU/ PDU

DAU/ ABU Asphalt

Extract

VR

Asphaltene

LCO + DO

LCO

ETP PGO

LS-FO

LCO

Sell

G

20

M&A under “Galaxy” projectFocus in Petrochemical Industry

Petrochemical and/ or related petrochemical business with synergy value

Why Galaxy :• Align with aspiration: “Leading Integrated Petrochemical Complex in Asia by 2020”

• Growth Ambition: Invest to deliver targeted EBITDA of $100-200 Million

• Expeditious success

G

Newest investment thru “Galaxy”Polymers e-commerce platform: “IPLAS”

21

Investment Profile

Company: Guangzhao Saiju Performance Polymer Ltd, China

Business: E-commerce platform for variety of plastic products under “IPLAS” platform

Website: www.isuwang.com & www.suwen8.com

Investment size: ~ 650 MB

Exit strategy: IPO by 2021-2023

Shareholding Structure

• Founders 46%• IRPC (new shares) 15%• Others 39%

Investment Profile

New market and distribution

Benefit :

Big data analytic

Leverage know-how

IPLAS : provide market place for supplier and buyer focusing in SME

IPLAS : serve logistic as option for buyer and be included in prices

IPLAS : service buyers for credit term thru interest charged in prices

IPLAS’s PLATFORM : one stop service provider

22

IRPC 4.0 Developing implementation plan through IRPC supply chain

O3 - Utility demand forecasting

O2 - Mass balance reconciliation system

E1 - SAP revisit

I3 - Control tower decision making

O4-O5Rotating Machine PM

O1 - EKON$

P1 - Spend cube analytics

/ SRM

I1 - Crude selection

SupplyProduction/

operationDistribution Customer

Market/Competitor

Digital Organization Data Lake

Robust ERPBackbone

Secured Technology

Agile Way of Work

Collaboration platform

with cross function

team

P2 - Advance material mgmt.

C4 - End-to-end CRM

C1 - Advanced pricing algorithm C6 - Market &

competitors intelligence

C3 - Big data analytics to predict demand

E2 - Tech functionE3a - Data governance /

Reporting & big data analytics

I2 - Collaborative asset tech. platform

P3 - Demand planning (non-HC)

C5 - B2B portal

P4 - Process workflow re-design

C2 - Customer industry platform

O6 - Catalyst lifecycle prediction

O10 - Maintenance advanced scheduler

O8 - Crude blending optimization

O12 - Smart operator app & wearable safety

device

81

Digital leader

23

2 510

6

15

6

10

2429

58

3

2018

> 100

2019 2020

50

11.5

PRO 4.0

OPS 4.0

CCM 4.0

ERP 4.0

ISC 4.0

Unit: MUSD

19 initiatives

to be launched in Y2018

Target

Strategic Initiative – IRPC 4.0To reach 100 MUSD benefit within 2 years

24

Digital passive

DAI: Digital Assessment Index >>

‘Improve DAI to be digital leader’

Power of PeopleIRPC New DNA

24

Individual Ownership

Result-Oriented

Promise and Deliver

Continuous Improvement

Do Things Together

No Bias

Actively Solve The Problem

Following orders

Process-oriented

Promise but delay

Business as usual

Silo-based

Biased reward

Too many

commentators

Projects Update

Industry Outlook

Appendix


25


Strategic Direction

Petrochemical Outlook : PolypropyleneTighten global supply with high U- rate vs demand dynamics

Polypropylene: Regional capacity additions

2018 IHS Markit

Previous forecast

Polypropylene demand

Polypropylene world operating rate

2018 IHS Markit

Polypropylene Market Trade

2018 IHS Markit

Tight supply developing with new capacity delay China demand boost due to recycle ban

Mil

lio

n M

etr

ic T

on

s

Th

ou

sa

nd

Me

tric

To

ns

2018 IHS Markit

High operating rates required to meet strong demand

2012 – 2017: Avg. 86.8% 2018 – 2022: Avg. 91.9%

SEA

Regional and Global market will be tight

26

Global Incremental LDPE Supply/Demand

27

Petrochemical Outlook : PolyethyleneIncremental PE Supplies exceed demand growth to worsen PE margin

Global PE Supply/Demand

2018 IHS Markit

2018 IHS Markit

China PE recycle VS virgin demand

Recycle PE drop from 3 MMTPA to 1 MMTPA

China trash ban supports virgin PE demand

Global tighter HDPE supplies : supporting by China’s coal to gas and

recycle plastic ban policy

2018 IHS Markit

LDPE & LLDPE Supply/Demand HDPE Supply/Demand

Global Incremental LLDPE Supply/Demand

2018 IHS Markit

28

Petrochemical Outlook : ABSStrongly demand growth vs limited capacity addition

Global ABS operating rate

Strongly demand growth relative to global GDP: Car, Toy and household appliances contain ABS

Very few additional capacities in near term length

The global operating rate bottomed out in 2014 at 68% and be expected to improve above 80% since market digests recent ABS capacity investments

Global ABS supply and demand

2018 IHS Markit2018 IHS Markit

ABS strong demand growth vs limited supply ABS operating rate will recover to above 80%

Projects Update

Industry Outlook

Appendix


29


Strategic Direction

30

Dividend Policy & PaymentIRPC is firmly committed to pay dividend at no less than 25% of net income

67% 58% 63%

25% 25% 25%

48% 48% 52%

30%

Dividend Yield 4.1% 2.8% 2.9% 1.9% 3.1% 2.6% 5.1% 4.8% 4.1% 3.5%

Share Price 2 4.38 6.50 4.08 4.12 3.26 3.06 4.30 4.80 7.05 5.80

IRPC pay at 48-67% payout ratio with average dividend yield of 4.0%

0.270.31

0.19

-0.04

0.04

-0.26

0.46 0.480.56

0.33

0.18 0.180.12

0.08 0.10 0.08

0.22 0.230.29

0.10

2009 2010 2011 2012 2013 2014 2015 2016 2017 1H18

EPS

DPS

Dividend Payout

Unit: THB

Div. Policy ≥ 25%

Note: 1 Annualized

2 Closing price at the end of period

N.A.N.A.N.A.

1

Projects Update

Industry Outlook

Appendix


31


Strategic Direction

32

CAPEX Plan in 2018 – 20225 year CAPEX budget of Bt 53 bn including initiative projects

4,333 2,470 2,354 2,425 4,947 2,703

3,397

1,445

342

488

1,132

1,466

116 73

1,301

4,291

9,747

9,736

9,718

9,203

7,169 6,761

12,245

14,683

12,421

2017A 2018 2019 2020 2021 2022

Maintenance

UHV, PPE & PPC Projects

Everest & Delta Projects

Other Projects

Initiative Projects

Unit: MB

14,899 ,

28%

1,445 , 3%

488 , 1%1,655 , 3%

34,793 ,

65%

IRPC 5 year CAPEX Plan

UHV, PPE&PPC

Maintenance

Everest , Delta

Others

Total

53,279 MBInitiative Projects

CAPEX & Projects Update

Industry Outlook

Appendix


33


Strategic Direction

34

Important Events in History

2009 2011 2013 2015 2016

HISTORY

KEY MILESTONES OF THE DECADE

• Increased refinery capacity from 65 kbd to 215 kbd

• Entered Rehabilitation Plan

Successful Rehabilitation new major shareholders:

Founded by “Leophairatana” Family as TPI

IPO Restructuring Plan was approved

Exited from Rehabilitation

plan and Registered as

IRPC Plc.

Operated first LDPE plant in

SEA

Debt Moratorium

MOF was appointed as plan

administrator

1978 1982 1995 1997 2000 2003 2004 2005 2006

Efficiency improvement#1 under “DELTA” Project

Capacity Increase: ABS/SAN to 179 KTA

Efficiency improvement#2 :

Launched “EVEREST” project

Business Improvement under Phoenix

Project

Commenced operation of

Combined Heat and Power Project

(CHP I)

• Commenced UHV project in July 2016

• PTT 31.5%• Gov’t (Vayupak) Fund

10%• Gov’t Saving Bank 10%• Gov’t Pension Fund

Group 10%

UHV: Upstream Project for Hygiene and Value Add Products

2017

• Commenced PPE project in Sept. 2017

• Commenced PPC project in Dec. 2017

2018

• Launched “GDP” project : Growth, Digital, People

48.05%

9.45%

13.06%

29.44%Others

Introduction to IRPCIntegrated Petrochemical Complex

35

Shareholding Structure*

PTT secures 100% crude procurement for IRPC at the market price

Receive 60 days credit term from PTT

Petroleum Product off-take and swap agreement with PTT group on arm-length basis

Strong support of credit facilities from PTT thruIntercompany Borrowing & Lending (ICBL)program

IRPC are under umbrella of PTT group’s centraltreasury management framework

PTT

Crude Procurement &

Credit Term

Product Swaps and Off-takes

Financial and Risk Control

Systems

Operational & Strategic Relationships with PTT Group

Complex & Facilities

*Note: as of Sep 2018

• Integrated petrochemical complex: Upstream to downstream in a single complex

• Locate in Industrial Area: Eastern Seaboard Area of Thailand, 200 km. from Bangkok and 30 km. from Map Ta Phut Industrial Area

• Facility Support:- Deepest sea port- Tank Farm and Power Plant- Thailand’s main coastal highway

Market Cap. : 117,498 MB (as of December 28, 2018)

Credit Rating

BB+Positive Outlook

Ba1Positive Outlook

A-(tha) Stable Outlook

Thai NVDR

Foreign

36

Petroleum and Petrochemical Capacity

Petroleum Petrochemical

IRPC Core Business

Deep Sea PortUtilities5 Depots,

328 MW Power plant

Facilities & Utilities

Refinery• LPG• Naphtha• Gasoline• Diesel• Fuel Oil

Lube Base• Lube Base Oil• Asphalt

Olefins• Ethylene• Propylene• Butadiene

Aromatics• Benzene• Toluene• Mixed Xylene

Polyolefins• HDPE• PP

Polystyrenics• ABS• PS• EPS

Petrochemical Capacity• Monomer 1,588 KTA• Polymer 1,267 KTA

2,855 KTA

Crude Refining Capacity

215 KBD

Freehold Land4,750 Acres

1,221,000

367,000

915,000

352,000

920,000

215,000

Unit: Ton per yearUnit: Barrel per day

Unit: Ton per year

37

IRPC’s Profile

Refinery Capacity : 215 KBD (crude distillation unit)

Petrochemical Capacity : 2.9 million tons

Olefins, Aromatics, Polyolefins, Polystyrenics

1

PP 3rd largest in South-East Asia: 775 KTA

HDPE pipe grade 140 KTA

ABS 179 KTA: The Largest producer in Thailand

2

Lube base oil : 320 KTA

Asphalt : 600 KTA

3

50% of specialty petrochemical portfolio

PPC to add more specialty Petrochemical Products

Specialty : 10-20% higher margin vs Commodity

5

Integrated

Petrochemical Complex &

Product Diversification

Remarkable Position

in ASEAN

Polymer Market

The largest lube base oil capacity

in Thailand

Power & Utility business : 1.0 $/bbl to GIM

Additional contribution from utility JV starting from 2018

Stable income from Port and Tank business

4 Sustained earnings

from facility

and utility businesses

Specialty Petrochemical

to capture

higher margin

38

Petroleum and Petrochemical Value Chain Optimized Configuration & Product Diversification

Olefins Plant PropyleneEthyleneAcetylene Butadiene

180 KTA360 KTA6 KTA56 KTA

Vacuum Gas Oil (VGO)

PP

PS

ABS/SAN

EPS

CCM

Acetylene Black

HDPEEthylene

Acetylene

Propylene

Benzene

TolueneMixed Xylene

Butadiene

CD1

Ethylene

EBSM

Long Residue

4 KTA

140 KTA

775 KTA

Ethylene Rich Gas

DCC

Propylene 132 KTA

ADU (1,2)

215 KBD

Naphtha

Reformate

UHV

Ethylene Propylene 320 KTA

73 KTA

Lube BaseLube Base Oil Asphalt

320 KTA600 KTA

BTX Benzene TolueneMixed Xylene

114 KTA132 KTA121 KTA 31 KTA

57 KTA

179 KTA

125 KTA

48 KTA

260 KTAStyrene Monomer

Acrylonitrile

Feed (Crude Oil / Condensate)Transportation FuelGasoline,

Jet

Diesel

PRP

HS ATB

Propylene 100 KTA

Pyrolysis Gasoline Raffinate

Styrene Monomer

LS ATB

65% 18% 7% 10%

Crude/Condensate Portfolio

Middle east Far east Domestic Others

For sale

Projects Update

Industry Outlook

Appendix


39


Strategic Direction

Financial Highlight: 3Q18 & 9M18 performanceHyvahl & RDCC planned SD and lower product spreads vs lower crude premium

40

27%

61%

12%

52,355 65,367 68,831

139,151 194,686

QoQ 5%

YoY 31%

Overview of Business


Dubai (Avg.)

Unit: $/bbl

Net Income

Unit: MB

Unit: MB

YoY 21%

QoQ 37%

EBITDA

Unit: MB

6,635 7,162 5,258

13,890 17,809

QoQ 27%

YoY 21%

Petroleum Petrochemical Utilities and Others


EBITDA

Net income

9M18

40%

51%

9%

71%

28%

1%

194,686MB

17,809MB

3,248 4,050 2,560

6,841 9,362

3Q17 2Q18 3Q18 9M17 9M18

9,362MB

Market GIM ($/bbl) 15.05 13.86 12.37

5172 74

5170

Crude run KBD 201 210 203

Acct. GIM ($/bbl) 16.09 17.47 14.10

3Q18

35%

55%

10%

71%

28%

1%

68,831MB

5,258MB

15%

71%

14%

2,560MB

Net Stock G/(L)($/bbl) 1.04 3.61 1.73

YoY 37%

YoY 28%

YoY 40%

170 209

TA in 1Q17

14.57

15.34

1.90

13.44

14.85

0.28

- The petrochemical producers used more Naphtha as feedstock because of the higher price of LPG

- Soften Demand- High inventories level in USA and Europe- Higher export volume from China and South

Korea

41

Petroleum Spread

50

(50) (31) (26)(55) (28)

(68) (41)

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

777 737 602 624 534 579 544 471

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

438 417 498 512 470 528 481 417

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

(5.0) (5.0)(2.3) (2.1)

(4.0)(1.4)

(4.4)(2.5)

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

13.7 10.8 12.5 12.4

14.6 13.9 14.6 14.4

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

18.3

14.9 14.9 15.0 12.5

16.1

12.1 11.6

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

500SN – FO 180 3.5%S Spread

150 BS – FO 180 3.5%S Spread

Asphalt – FO 180 3.5%S Spread

$/BBL

$/BBL

$/BBL

Lube Base SpreadRefinery Spread

Gas oil - Dubai

ULG 95 - Dubai

HSFO - Dubai

1.7 1.3 0.7

(0.1) (1.1) (0.2)(1.4) (1.3)

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

Naphtha - Dubai

$/BBL

$/TON

$/TON

$/TON

QoQ 13%

QoQ 13%

QoQ 43%

QoQ 1%

QoQ 4%

QoQ 7%

QoQ

QoQ

QoQ

QoQ

QoQ

QoQ

+ Higher demand from Europe and Persian Gulf+ Lower export volume from Iran

- Higher export volume from China + Higher demand from N.Asia, Australia and South

Africa

+ Tight supply + unplanned shutdown of

Malaysian Refinery

- Lower import from China as Yuan depreciation against USD

QoQ 40%

9M18 Market GRM was $5.3/bbl:

YoY : $0.1/bbl decrease as lower Lube Base Oil spread versus higher Diesel spread

13% 11%

7% 7%

5% 6%

8% 8%

21%1%

9%

30%

2%18% 18%

3% 4%16% 13%

9M17 9M18

LPG

Ethylene

Propylene

Benzene Rich

Gasoline

HCN

Diesel

Fuel oil

Fuel Gas

Internal use&Fuel Loss

18% 13%

4% 7%

5%5%

8%8%

22% 19%

9%11%1%

17% 18%

3% 3%

14% 15%

2016 201742

Petroleum Business9M18 : Slightly lower Mkt GRM as Lube Base Oil Spread vs Diesel spread 2017: Better Product yield after COD of UHV leads to mkt GRM increase

6.2 4.4 2.0 1.7 1.4

29.2 30.2 29.5

21.1 26.0

5.7 6.3 6.2

4.2

7.3

3.9 2.5 3.2

2.2

2.0

0.8 0.3 0.5

0.3

0.7

45.7 43.7 41.4

29.5

37.4

2015 2016 2017 9M17 9M18

3.8 3.4 3.1 2.2 2.5

3.7 3.4 3.3 2.3 2.7

7.5 6.8 6.4 4.5 5.2

2015 2016 2017 9M17 9M18

Refinery Production

Lube Base Oil Production

Unit : Mbbl

Sweet , 35%Sour ,

65%

Crude Intake

Unit : Mbbl

Remark : Excluding internal use quantity

Asphalt

Lube Base

3.9 2.7 3.1 2.8 3.2

2.3 2.2 2.1 2.3 1.7

6.2 4.9 5.2 5.1 5.0

2015 2016 2017 9M17 9M18

Lube Base

Refinery

Crude intake (Mbbl)

Market GRM

Sales Volume & Revenue

YoY 19% (volume 1%, price 20%)

54.0 52.0 52.4 37.3 45.4

8.1 7.2 6.4

4.6 5.3

62.1 59.2 58.8

42.0 50.7

2015 2016 2017 9M17 9M18

Lube Base

Refinery

Unit : $/bbl

79% 97% %Utilization

Sales Volume (Mbbl)

Revenue (MB)

66.6 67.0 65.546.5

57.0

60% 61% 67% 66% 65%

40% 39% 33% 34% 35%

2015 2016 2017 9M17 9M18

SweetCrude

Sour

Crude

183 183 180

Naphtha

Gasoline

Diesel

Fuel oil

LPG & Others

122,279 98,348 119,015 82,772

122,800

21,016 14,80416,110

11,706

14,248

143,295 113,152 135,125

94,478 137,048

2015 2016 2017 9M17 9M18

Lube Base

Refinery

9M18


170 209Crude Run

(KBD)

85% 85% 84%

RDCC Unit72% % Utilization78% 95%43%

2017 MKT GRM was $5.2/bbl: $0.3/bbl increase YoY due to better product yield after COD of UHV project since Jul. 2016

Petrochemical Spread

973 957

1,334 1,328 1,352 1,377 1,379 1,248

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

$/TON

170 194 159 176

125 159

115 121

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

$/TON

261 209 235 219 351 201 427 267

613 639 596 586 600

622 581

550

874 848 831 805 951

823 1,008

817

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

$/TON HDPE-Ethylene Ethylene-NP

210 250

172 192 189 182 164 217

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

$/TON

776 817947 962 947 977 945 898

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

$/TON

283 306 328 351 377 323 362 361

384 350 328 317 280 356 298 256

667 656 656 668 657 679 660 617

2015 2016 2017 9M17 9M18 3Q17 2Q18 3Q18

$/TON Propylene-NP PP-Propylene

HDPE-Ethylene –Naphtha Spread

PP-Propylene –Naphtha Spread

MX – Naphtha SpreadToluene – Naphtha Spread

PS –Naphtha SpreadABS –Naphtha Spread

Ole

fin

sS

tyre

nic

sA

rom

ati

cs

QoQ

QoQ

QoQ

QoQ

QoQ

QoQ

QoQ 9%

QoQ 7%

QoQ 5%

43

- Lower demand from Monsoon

- Higher utilization rate - Soften demand from China

+ Increasing demand

- Lower Chinese demand due to weaken Yuan

+ Tight supply from turnaround

+ Higher PX demand+ Tight supply from turnaround in

N.E.A.

- High production volume in China- Weaken demand

QoQ 19%

QoQ 5% QoQ 32%

66.6 67.0 65.546.5

57.0

44

Petrochemical Business9M18 : Lower PTF mainly from lower products spread 2017 : PTF from full year benefit of UHV and uptrend Styrenics spread

22,317 22,335 24,684 17,972 22,100

30,794 29,78035,044

24,702 33,165

53,111 52,115 59,728

42,674 55,265

2015 2016 2017 9M17 9M18

Olefins &Polyolefins

Aromatics &Styrenics

633 677 631 459 552

791 857 952

676 829

1,424 1,534 1,583

1,135 1,381

2015 2016 2017 9M17 9M18


Aromatics &Styrenics

Olefins Production

Unit : KMT

311 386 350

253 297

34 9

12

9 14

251 310 313

229 250

596

705 675

490 561

2015 2016 2017 9M17 9M18

Aromatics & Styrenics Production

Styrenics

Aromatics

Polystyrenics

Unit : KMT

Olefins

Polyolefins

226 245 270 192 209

506 535 600

401

592

732 780

870

592

801

2015 2016 2017 9M17 9M18

2.0 2.0 3.0 3.2 2.7

4.7 5.1 5.2 5.3 4.7

6.7 7.1 8.3 8.5

7.4

2015 2016 2017 9M17 9M18


Aromatics& Styrenics

87% 100% % U-Rate

86% 91% Polystyrenics

96% 110% Styrenics

84% 103% Aromatics

82% 92% % U-Rate

86% 88% Polyolefins

78% 99% Olefins

Unit : $/bbl

Market PTF

Sales Volume & Revenue

Sales Volume (KMT)

Revenue (MB)

9M18 Market PTF was $7.4/bbl:

YoY : $1.1/bbl decrease as lower products spread

YoY 15%

(volume 3%, price 12%)


90% 90% 87%

83% 87% 91%

97% 92% 83%

91% 91% 90%

85% 84% 88%

94% 82% 100%

94% 100% 88%

2017 MKT PTF was $8.3/bbl: $1.2/bbl increase YoY due to better product yield after the COD of UHV and PPE projects & higher Styrenics spread

9,331 8,493 7,667 23,333 24,729 1,098

2,171 1,017

1,661 3,382

(455)

44 54

(1,221)

108 9,974 10,708 8,738

23,773 28,219

3Q17 2Q18 3Q18 9M17 9M18

Market GIM

3Q18 Market GIM was $12.4/bbl,

QoQ: $1.5/bbl due to Hyvahl & RDCC planned SD and lower product

spreads vs lower crude premium

YoY: $2.7/bbl due to Hyvahl & RDCC planned SD, lower product spreads

and higher crude premium

9M18 Market GIM was $13.4/bbl: $1.2/bbl from 9M17

Higher crude premium over Dubai while projects completion support margin

3.9 3.4 2.9 2.8 3.2

2.1 1.8 1.5 2.3 1.7

5.9 5.2 4.3 5.1 5.0

3Q17 2Q18 3Q18 9M17 9M18

Refinery Lube Base

5.3 5.0 4.3 5.3 4.7

2.9 2.6 2.7 3.2 2.7

8.2 7.6 7.0 8.5 7.4

Olefins Aromatics&Styrenics

5.9 5.2 4.3 5.1 5.0

8.2 7.6 7.0 8.5 7.4

0.9 1.1 1.1 1.0 1.1

15.1 13.9 12.4 14.6 13.4

Petroleum Petrochem Power & Utility

3,662 3,184 2,681 8,171 9,126

5,107 4,661 4,312

13,531 13,617 562 648 674

1,631 1,986 9,331 8,493 7,667

23,333 24,729

3Q17 2Q18 3Q18 9M17 9M18

15.1 13.9 12.4 14.6 13.4

1.8 3.5 1.6

1.0 1.8

(0.7)

0.1 0.1

(0.8)

0.1 16.1

17.514.1

14.9

15.3

Market GIM Stk G/(L) & LCM Hedging

Market GIM

Unit: $/bbl

Accounting GIM

Unit: $/bbl

Unit: MB

Market GIM by business

Unit: $/bblPetrochemical

Petroleum

Unit: MB

45

Gross Integrated Margin (GIM)Shutdown result in lower Mkt GIM & lower net stock gain affected lower Acct. GIM

YoY 18%

QoQ 11%

YoY 8%

YoY 12% YoY 3% QoQ 19%

Accounting GIM

3Q18 Acct GIM was $14.1/bbl

QoQ: $3.4/bbl due to $1.9/bbl lower stock gain and $1.5/bbl lower of

market GIM

YoY: $2.0/bbl due to $2.7/bbl lower market GIM VS $0.7/bbl higher

stock gain

9M18 Acct GIM was $15.3/bbl: $0.4/bbl from 9M17 due to $1.6/bbl

higher stock gain vs $1.2/bbl lower of market GIM

699 3,734 6,358 6,438

17,416 1,936

4,516

3,363

6,887

699

7,098 8,294

13,325

21,932

2018 2019 2020 2021 >2021

THB Bond

USD Loan

THB Loan

128,324 126,970

8,637 9,220

45,438 52,753

2,145 2,336

87,650 88,996

2,378 2,537

55,812 51,347

38,704 48,399

46

Financial PositionIncrease ST loans to support crude payment due to high crude oil price

Maturity of Long-term Debt

Debt ProfileStatements of Financial Position

Cash Flow

Unit : MB

Remark: Long-term debt as at 30 Sep 2018

Unit: MB

PP&E

Other Non-C/A

Cash

184,544

Other CurrentLiabilities

LT Liabilities incl. current port.

Shareholders’Equity

Sep. 2018

191,279

Dec. 2017

Other CA

Other Non-CurrentLiabilities

Beginning Cash

1 Jan 2018

Ending Cash30 Sep 2018

Cash Flow from

Operating

Unit: MB

Cash Flow from

Investing

Cash Flow from

Financing

Net Debt = 61,412 MB

Ex. Rate = 32.58 Baht/$

Financial Ratios

< 1.0x

Net D/E CA/CL

0.74 0.61 0.69

3Q17 2Q18 3Q18

0.85 0.90 1.00

3Q17 2Q18 3Q18

ST Loan20%

LT Loan (USD)10%

LT Loan (THB)54%

Bond (THB)16%

Float 84 THB 66

Fixed 16 USD 34

Currency (%) Interest Rate (%)

16%

22%

31%34% 35%

39%43%

45%

50%

55%

60%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

47

Specialty Petrochemical ProductsSpecialty & Commodity Plus Products to reach 50% in 2018

IRPC 50%

PPC Rokita 50%

IRPC A&L

IRPC 60%

Nippon A&L 37%

Sumithai 3%

Joint Venture

Polyol

Sale Volume (SP+CP) Unit: MT

PPE

PPC

160 KTA

140 KTA COD Dec. 2017

COD Sept. 2017

30% volume growth mainly from PPE&PPC

Thank You

This presentation material has been prepared solely for informational purposes only. IRPC is furnishing it solely for use by prospective investors / analysts in

the proposed event. IRPC makes no representations or warranties as to the accuracy or completeness of such information. By accepting this material each

recipient agrees that IRPC shall not have any liability for any representations (express or implied) contained in, or for any omissions from this presentation.

The information contained herein does not purport to be all-inclusive or to contain all of the Information that may be material to the recipient’s decision. Each

recipient of the information and data contained herein should perform its own independent investigation and analysis of the transaction and the creditworthiness of IRPC . Reference in this Disclaimer to this shall include references to the Appendices (if any) hereto.

Investor Relations Contact: [email protected]

Tel. +662-765-7380, Fax. +662-765-7379

mailto:[email protected]

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