investor update may 2015 - listed...

INVESTOR UPDATE MAY 2015

Overview

Performance Q1/15

2015 Outlook

Contents

Overview Performance Q1/15 2015 Outlook

1

Indigenous (21%)

Imported Refined Petroleum Products 65 KBD

917 KBD (**)

Source: PTIT

Remark : (*)Refined product from refineries = 937 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 109 KBD

(**) Not included Inventory

KBD = Thousand Barrels per day

Import (79%)

Crude/ Condensate 851 KBD

Refined Products 1046 KBD*

Domestic

Crude/ Condensate 224 KBD

Supply Production Sales

Export

214 KBD

Oil Balance Thailand: Jan – Mar 2015

224 KBD

Adequate refining capacity maintains the stability of supply

Total Refining Capacity in Thailand: 1,087 KBD

PTT’s Associated Refineries : 910 KBD

(TOP, PTTGC, SPRC, IRPC, BCP)

Other Refineries : 177 KBD (ESSO)

Refined Products 204 KBD

2

Crude Export 10 KBD

916 KBD


Natural Gas Balance: Jan – Mar 2015

Gulf of Thailand (72%)

Power (59%)

Industry (14%)

NGV (7%)

Petrochemical Feedstock

(13%)

Industry Household

Transportation (7%)

Ethane/ Propane/ LPG/NGL

LPG/NGL

Remark: MMSCFD = Million Cubic Feet @ Heating Value 1,000 Btu/ft3

3,477 MMSCFD

Main driver of the Thai economy

Supply Production Sales

3

LNG21%

Myanmar79%

Chevron 28%

PTTEP 30%

Others 42%

Bypass Gas 878

MMSCFD

985 MMSCFD (20%)

Methane 1,614 MMSCFD

Onshore (3%)

142 MMSCFD

6 GSPs Total Capacity

2,740 MMSCFD @ Actual Heat

Import (25%)

1,227 MMSCFD


81%

71% 19%

29%

2001 2014

Revenue

Net Income

Affiliate

PTT

702

1,716

IPO

1 As of 31 March 2015 : THB/US$ exchange rate of 32.79 2 As of December 2014

Largest company on Thai Stock exchange

Market cap ~US$57bn1 or ~ THB1.9 trillion1

Group companies:13.2%1 of Thai Stock Exchange market

capitalization

Majority owned by Thai government (66%)

51% by Ministry of Finance

15% by Vayupak Fund

Fully integrated and highly diversified over the entire O&G

value chain

International exploration and production business with 777

mmboe of proved reserves in 2014

Sole operator and owner of gas transmission pipelines and

GSPs in Thailand

Largest refinery group in Thailand with stakes in 4 of 6

refineries in the country

Largest petrochemical producer group in Thailand with

stakes in 6 of 8 major petrochemical plants

Leading oil marketing business with 1,396 retail stations

and 40%1 of market share by volume

International oil trading business having traded 74.2 bn

liters 2 in 2014

Coal business assets in Indonesia, Madagascar, and

Brunei

New Power Flagship (GPSC) to capture opportunity in

neighboring ASEAN countries

PTT is Thailand’s Largest Energy Company

PTT Public Limited Company (“PTT”) Robust revenue and Net Income growth since IPO (MMUSD)

12,553

87,223

International and local recognition

Thailand best borrower award

2014 Best CEO

Best CFO

Best Managed Company

Best Corporate Governance

Best Investor Relations

Best Corporate Social

Responsibility

Best Commitment to Strong

Dividend Policy

SET Awards

Top Corporate

Governance Report

Award 2010 & 2011

Best Corporate Social

Responsibility Awards

2011 & 2012

84st Fortune Global

500 in 2014 81st in 2013

95th in 2012

128th in 2011

Platts Top 250 Global Energy

Company

24th Overall Global

Performance in Asia of 2014

180th in 2014 144th in 2013

167th in 2012

171th in 2011

Dow Jones Sustainability

Index (DJSI)

DJSI Member 2013-2014

(Listed in 2011)

4


Ministry of Finance holds majority stake in PTT PTT ratings at Thai sovereign level

Thai Ministry of Finance

51%

Vayupak Fund1 15%

Public 34%

Kingdom of Thailand – FC

Baa1 BBB+ BBB+ A-

PTT – FC Baa1 BBB+ BBB+ A-

PTT – LC Baa1 BBB+ A- A

Largest market cap on the Thai Stock Exchange

Note: As March 2015

• Foreign 17%

• Thai 17%

PTT PTTEP PTTGC TOP IRPC BCP Total Others

Market cap (BNUSD)2 28.1 13.2 7.2 3.2 2.7 1.4 56.6 373.9

% of SET 6.5% 3.1% 1.7% 0.8% 0.6% 0.3% 13.2% 86.8%

Moody’s rating Baa1 Baa1 Baa2 Baa1 Ba1 N.A. - -

S&P rating BBB+ BBB+ BBB BBB BB+ N.A. - -

PTT’s Strategic Importance to Thailand

5

1 The Vayupak Fund is a registered investment management fund in Thailand in which the Government is a major unit holder. The Government has rights of first refusal with respect to

any of our shares to be sold by the fund. Although the fund’s shareholding may be considered to be beneficially owned by the Government under international standards, such shares

are not considered to be owned by the Government for the purposes of Thai law or our compliance with certain of our debt covenants 2 Based on data as of 31 March 2015/ THB/US$ exchange rate of 32.79

5


http://www.jcr.co.jp/english/

Our Major Businesses & Activities

E&P

Gas

PTTEP 65.29% Exploration and Production

Upst

ream

Oil Marketing

Int’l Trading

Dow

nst

ream

Petrochemical

& Refining

PTTGC 48.89% Petrochemical Flagship

TOP 49.10% Integrated Refinery & Petrochemical

IRPC 38.51% Integrated Refinery & Petrochemical

SPRC 36.00% Stand alone Complex Refinery

Infr

ast

ructu

re

Coal

GPSC 22.58% Power Flagship

• Oil Marketing 100% Retail service Stations and commercial Marketing

• Int’l Trading 100% Import/Export/Out-Out trading of petroleum and

petrochemical products

Inte

rmedia

te

PTT PLC

• Gas Pipeline 100% Sole owner/operator of the Transmission pipeline

• S&M 100% Supply & Marketing of Natural Gas

• GSP 100% Extracting Hydrocarbon contents in NG for Petrochemical’s feedstock

6

Business Areas Activities Company PTT’s holding (%)

6

PTT Energy Resources 100% Coal Business

Power


PTT Aspiration Strategic direction and target to achieve “Big-Long-Strong” aspiration

“Thai Premier Multinational Energy Company”

7

Strong

TOP Quartile ROIC

Listed in DJSI since 2011

Long

Ranked Fortune 84th

Big

Technologically Advanced and Green National Oil Company


Petrochem

Olefins business declined from Polymer price dropped, 24% Refinery’s margin increased 1% Aromatics improved: P2F margin raised 32%

1,063 2,271

13,711

6,638

8,422

5,616

3,816

3,319

1,526

4,740

Q1/2014 Q1/2015

1,779 699

10,517

14,297

756 2,145

1,751

Grossmargin

FX gain OtherIncome

OPEX * Share ofincome

Interestexpense

&Incometaxes

NCI

PTTEP

PTT

Others

Refinery

Petrochem

28,538

211%

13%

33% 52% 114%

Q1/15 Performance: PTT Group: Pressured performance

8

MMTHB

*including petroleum exploration expenses and royalties

Oil Vol. increased 1%

Performance decreased from stock losses

Trading Vol. increased 17% Margin decreased 54% from condensate discount

Higher performance of others mainly

from PTTLNG and PTTT

Margin

FX gain OPEX*

Share of income

Interest expense &

income taxes

Other Income

21%

22,584

NCI PTTEP

Others


Refinery

Avg. A/C GIM increased 13%

Aggregate intake increased 15%

Sales vol. increased 10%

Performance decreased mainly from lower sale revenue and higher DD&A from an additional completed project

Gas GSP and Industrial EBITDA margin decreased by 84% and 48%

NG Sale Volume increase 9% from GSPs and New IPPs

Contents

9

Overview

Performance Q1/15

2015 Outlook


380

(739)

264

Q1/14 2013

Q1/14

E&P : Weakened YoY from declined oil price, though strong gas price helped; Rebounded QoQ due to lack of impairments

Product Prices

Net Income (100%)

Sales Volume

Key Highlights

7.79* 8.06 8.03

100.84

74.88

50.12

64.92** 56.54

48.74

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

Liquid ($/BBL)

Gas ($/MMBTU)

Weighted Avg. ($/BOE)

MMUSD

198 239 232

101 108 95

Q1/14 Q4/14 Q1/15

347

Liquid

Gas

KBOED

299

10

* Gas price, if excludes Vietnam 16-1 retroactive sale recording, is 7.97$ for Q1 14

** Average selling price, if excludes Vietnam 16-1 retroactive sale recording is 65.91$ for Q1 14

327

Q4/14

QoQ

• Sales volume decreased slightly from PTTEP Australasia and Contract 4 projects

• Avg. selling price decreased in line with world oil price • Net income increased mainly due to lack of impairment loss as

well as a decline in exploration expenses & income tax YoY

• Avg price significantly decreased from steep decline in oil price, though strong, resilient gas price helped

• Volume increased from Zawtika full production & Hess acquisition • Net income declined from lower product prices & higher DD&A

from newly completed projects

50% YoY

33% QoQ

3% YoY

0.4% QoQ

25% YoY

14% QoQ

9% YoY

6% QoQ

Q1/15

31% YoY

136% QoQ

E & P Gas Oil & Trading Refining PetChem Others

Overview Performance Q1/15 Outlook

E&P Roadmap: Deliver near-term growth and reassess feasibility of medium-long term prospects


11

Further-down horizon : deliver near-term growth and reassess feasibility of medium-long term prospects

What to expect in 2015

1. “SAVE to be SAFE” Cost Optimization Initiative

• Leaner CAPEX and OPEX (~10% reduction in 2015)

2. M&A Opportunities • Robust liquidity & ample debt headroom 3. Focused exploration and appraisal

• Reduced exposure to high risk/cost wells • Concentration of SE Asia


Business Segment

Q1/14 Q4/14* Q1/15 QoQ YoY

14,311 9,680 9,262 (4%) (35%)

• S&M 4,753 3,290 2,476 (25%) (48%)

• TM 6,881 5,874 6,775 15% (2%)

• GSP 5,668 3,637 916 (75%) (84%)

• NGV (4,737) (4,865) (3,019) 38% 36%

• Others 1,746 1,744 2,114 21% 21%

12

PTT EBITDA Performance:

(Unit:MMTHB)

5,042 (236) 3,927 1,764% (22%)

1,940 (331) 740 324% (62%)

* Not restated ** MIS *** Included Gas/Oil/Trading affiliates 12

Gas-EBITDA

Oil-EBITDA

Trading**- EBITDA

Total*** 21,293 9,113 13,929 53% (35%)


4,704 4,685

4,497 4,469

4,450

4,768 4,731 4,802 4,832

Q1 Q2 Q3 Q41,259 1,070 1,129

610 1,034 1,011

710 695 720

910 1,034 985

642 653 670 319 316 317

Q1/14 Q4/14 Q1/15

Gas BU: Natural gas volume continues to grow

NG Sales Volume* NG Customer Breakdown

2013

2015

2014

MMSCFD

EGAT (23%)

IPP (21%)

SPP (15%)

GSP (20%)

Industry (14%) NGV (7%)

MMSCFD

4,802 4,450

AVG.

4,688

4,832

4,589

4,589

9% YoY

8.87 8.79 8.82

Q1/14 Q4/14 Q1/15

NGV Sales Volume

Unit : Approx. KTon/Day

Vol. MMCFD

319 316 317

0.3% QoQ QoQ

• NG volume increased mainly from power sector demand (EGAT+SPP).

• NGV demand was flat, following gradually price rise

YoY

• NG volume increase mainly due to higher GSP gas demand and new IPPs

• NGV demand declined slightly due to retail price adjustment amid lower oil price

QoQ

• Higher NGV Sales volume due to NGV Station back to normal operation after closed during political demonstratiionon

YOY

• Sales volume increased by 5%, also, feed cost increased

• No Government subsidy, while special discount given to public transportation customers

Key Highlights

SM: GSM, NGR, CHP margin +1.75% no cap for internal use, external cap according to price structure

4,832

1% QoQ

Convention เพิม่ 2 สถานี Mother Daughter ท่ีเพิม่ขึน้เป็นของเอกชน

* NG Sales Volume include Inter-BA Transaction

Gas BU Performance:

Better performance from GSP#5 back to normal operation

K.Ton/Day

13

1% YoY



389 382 380

858

577

444

1,556

1,448 1,188

1,556

1,428 1,130

333

498*

333

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

4,753 3,290 2,476

6,881 5,874 6,775

5,668

3,637 916

(4,737) (4,865) (3,019)

1,746

1,744 2,114

Gas - EBITDA

MMTHB

Others

TM

GSP

14,311

Q1/14 Q4/14*** Q1/15

9,680

S&M

NGV

638 714 674

181 179 187

476 597 552

209

244 204

3

Q1/14 Q4/14 Q1/15

1,734

GSP Sales Volume

LPG (42%)

kTon

1,504

1,620

7% QoQ

8% YoY

Gas BU : Lower GSP and industrial margins pressured Gas BU performance

14

QoQ

• GSP margin continued under pressure from lower petchem prices, notwithstanding loosened LPG price ex-GSP

• GSP sales volume declined from weaker industrial & auto demand, following naphtha/oil prices

• Gas BU’s EBITDA slipped slightly further, resulting from continued squeezed GSP and industrial margins, though NGV loss lowered following retail price adjustment

YoY

• Lower performance mainly from GSP and S&M, though NGV loss decline from increased retail prices

• GSP: lower selling price linked to sharp-fallen petchem prices, while gas feed cost maintained

• S&M: lower performance, esp. from industrial customers, due to lag time between selling price and cost

Propane (12%)

NGL (11%)

Ethane (34%)

Key Highlights

35% YoY

***Not restated

GSP - Reference Product Prices

PP

HDPE

Naphtha

USD/Ton

Feed Cost**

LPG Ex-GSP

* Effective on February 2, 2015 ** Revised Feed cost due to re-calculated with GSP production volume instead of sale volume

Q3/14 Q4/14 2013 2014 20142

S&M 7,092 3,290 18,436 20,456 20,456

TM 6,681 5,874 24,984 26,071 26,071

GSP 5,190 3,637 13,663 20,030 20,030

NGV (5,082) (4,865) (18,981) (19,962) (19,962)

Others 1,959 1,744 6,734 7,507 7,507

Total 15,840 9,680 44,836 54,102 54,102

15,840 9,680 44,836 54,102 54,102

12% -39% - 21%

9,262

Pentane (1%)

4% QoQ



GSP

Capacity (MTA)

6.7 6.7 6.7 6.7

PTTEP (M9)

6.7

Gas Business Roadmap

15

LNG Ph#2

Pipeline Capacity

(MMSCFD) 7,180 7,480 4,580

LNG Capacity

(MTA)

5 5 10 13

• BVW#7 compressor unit4

• 4th onshore

• Nakhon Sawan

• Offshore compressor

• 4th onshore

Midline compressor

• Nakhon Ratchasima

7,480

5

7,180

13

FSRU (West)

7,480

6.7


GSP

Capacity (MTA)

6.7 6.7 6.7 6.7

LNG Terminal Phase 2

6.7

15

LNG Ph#2

Pipeline Capacity

(MMSCFD) 7,180 7,480 4,580

LNG Capacity

(MTA)

5 5 10 13

• BVW#7 compressor unit4

• 4th onshore

• Nakhon Sawan

• Offshore compressor

• 4th onshore

Midline compressor

• Nakhon Ratchasima

7,480

5

7,180

13

FSRU (West)

7,480

6.7

• Waiting for a resolution form NEPC on 14 May, 2015

(ท ัง้นี ้สธฐ. จะแจง้ Update ขอ้มลูทีส่ามารถน าเสนอ Analyst meeting ในวนัที ่15 พ.ค.58 ตอ่ไป)

• ERC has amended TPA regime and declared 2nd TPA regime in Royal Thai Government Gazette since 8 May, 2015

• ERC also required PTT to amend TPA code regarding the onshore gas pipeline system within 60 days therefore the deadline is 6 July, 2015

Foundation work on jetty and construction of tank roof structure

Construction completed 35.96%

5th Onshore Gas Pipeline

Under revision to be more suitable for the country’s needs and energy security

Expected to be submitted to NEPC within 2015

TPA codes for onshore NG pipeline and LNG terminals effective as from 30th March 2015

TPA Code

15

Key Progress Demand & Supply


0.0

0.2

0.4

0.6

Jul-14 Oct-14 Jan-15

Industry Auto Household

0

20

40

60

0

500

1,000

1,500

2,000

2,500


Sales vol. Export Price (RHS)

Mar-15

Import



Thailand’s Energy Demand/Supply: Reform Bears Fruit

NGV Higher price , steady volume

M.Ton

THB/Kg

Diesel Demand remain resilience

Gasoline Higher demand following lower price

M.Litre THB/Litre

16

Import

8.9 8.9 8.9 8.8 8.9 8.7 8.4 8.9

9.2

5

10

15


0

20

40

60

0

500

1,000


Sales Vol. Export Price (RHS)

Mar-15

48.75

34.46 29.99

26.09

10.50

13.00

M.Litre THB/Litre

29.84

21.38

22.63 24.16

Mar-15 Mar-15

11.50

12.50

LPG Lower import and sale vol. after restructuring

Price +24% Avg.Vol. -0.5%

Industry +2% Auto -12% Household -2% Import -35%

Avg.Vol. +4% Price -19% Export -17%

Avg.Vol. +8% Price -10% Export -14%

Industry -19% Auto +7% Household +13%

Q1/15 Q1/14 % YoY

Gasoil 0.05%S 68 122 -44%

Mogas 67 119 -44%

Dubai 52 104 -50%

122

65 69

105

53 53

119

71 71

30

50

70

90

110

130

Q1/15 Q1/14 % YoY

Gasoil 0.05%S 68 122 -44%

Mogas 67 119 -44%

Dubai 52 104 -50%

Average Price:

615 712 746

4,427

(948)

Q1/14 Q4/14** Q1/15

5,042

(236)

3,927

Oil BU : Volatile oil price led to continued stock loss

Contribution Margin 1/

Oil - EBITDA

Key Highlights

MMTHB

THB/Liter

1/ Excluded non–oil business

17

QoQ

• Monthly oil price volatility in Q1/15 led to continued stock loss. However, contribution margin increased from lower stock loss.

• Volume increased from higher demand, following lower oil price • Significantly better EBITDA performance as a result of improved

margin YoY • Margin declined as a result of stock loss from tumbled oil price • Better sales volume mainly from gasoline, diesel and aviation • Better non-oil business performance from branch expansion • EBITDA decreased mainly due to stock loss

Oil

Non-Oil*


* EBITDA from Operating ** Not restated

6,306 6,209 6,386

Q1/14 Q4/14 Q1/15

Sales Volume 2/

MM Liter

2/ Only PTT and PTTRM

12% YoY

59% QoQ

1% YoY

3% QoQ

22% YoY

1,564% QoQ


3,181

(78) (3,616) (1,229)

USD/BBL

(Month-end Prices)

แตก graph • ราคา Q1/15 volatile

oil prices lead to stock loss

• Contribution margin

Petroleum Prices

Stock Gain/Loss (MMTHB)

0.92

0.51

0.81

Q1/14 Q4/14 Q1/15

Q1/14 Q2/14 Q3/14 Q4/14 Jan’15 Feb’15 Mar’15

Average Price:

Oil BU : Growing PTT internationally to be regional top brand

18



BrandAge Thailand's Most Admired Brand 2015

• PTT Station has been voted for 12 consecutive years (2004-2015) • Lubricant Products gains popularity among consumers and has been

voted to be “number 1” for 5 consecutive years

บอกจ านวนสถานใีนปัจจบุนั

อกี 5 ปีเป็นกีส่ถานี In 4 countries totaling

xxx station

(Currently 122 stations)

19 stations

138 stations

57 stations

50 stations

“Double” number of stations in 4 ASEAN countries Target 264 stations by 2018

18

(Currently 123 stations)

105.19

73.98

52.48 0.13

0.06 0.06

Q1/14 Q4/14 Q1/15

0% QoQ

54% YoY

1,940

(331)

740

Q1/14 Q4/14** Q1/15

17,232

19,527 20,144

Q1/14 Q4/14 Q1/15

Trading BU : Performance declined YoY from squeezed margin

Contribution Margin*

Trading - EBITDA*

Sales Volume

Key Highlights

MMTHB

MM Liter

* PTT only : FX Adjustment in compliance with Accounting Standard ** Not restated 19

QoQ

• Sales volume increased mainly from crude import to refineries and new gasoline blending strategy

• EBITDA improve from no non-recurring item YoY • Margins squeezed from higher condensate discount • Increased sales volume from refineries back to operations and

new gasoline blending strategy • EBITDA declined mainly from lower margins of condensate

business ** Not restated

• Import parity • Basket price or

reference price

* PTT only : FX Adjustment in compliance with Accounting Standard

17% YoY

3% QoQ

62% YoY

324% QoQ



Contribution Margin (THB/Liter)

NWS ($/BBL)

29% QoQ

50% YoY

Trading BU : Going Forward Turning uncertainties into opportunities


20


Refineries : Q1/2015 Updates

21

Maximized refinery run at 106% while optimized Aromatics at 66% & Lube at

79%

Feb : Purchase of Land belonging to TPI Aromatics Plc

: Government Pension Fund, taking opportunity of improving share price, reduced stake in IRPC from 4.93% to 0.62%

Apr : Start up the Vacuum Gas Oil Hydro Treating Unit since 12 April 2015

Feb : Purchasing Cogeneration Power Plant from PTT

Mar : Investment in solar power plant project in Japan and establishment of a new

subsidiary (Bangchak Solar Energy Company)

Mar : SPRC and the Ministry of Energy signed the 3rd amendment to the COA, allowing

for resumption of IPO process



http://www.thaioilgroup.com/

2,468

(6,444)

4,498

(1,174)

(6,100)

2,601

1,562

(2,489)

1,037 344

(5,779)

3,832

Q1/14 Q4/14 Q1/15

95% 89% 66%

285

207

98

273 252 255

Q1/14 Q4/14 Q1/15

104.5 74.4 51.9

4.07

6.88 8.60

3.82

(4.23)

4.32 5.94

(2.40)

6.71

Q1/14 Q4/14 Q1/15

QoQ • Mkt GRM increased mainly from falling crude oil price (Q3/14:

101.5$/bbl, Q2/14: 106.1$/bbl)

• Q3/14 has large stock loss while Q2/14 had stock gain then A/C GRM decline pretty sharply (Ending Dubai Q2’14>Q3’14 : 108>96$/BBL

whereas Q1’14<Q2’14 : 104<108$/BBL), (stock loss 4R exclude PTTGC (Q3/14= -4.18 $/bbl., Q2/14= +1.06$/bbl)

• Recovered PX spread (PX-ULG95: Q3/14= 371$/ton, Q2/14=220$/ton) from several PX producers cut runs and some plants’ maintenance (also

postponed PX plant start up in SG capacity 800,000 tons/yr. from Aug. to Sept.)

• BZ spread also improved from capacity declined (producers in Japan cut

runs, and postponed operation in SG) in contrast to its improving demand (from imported demand in US, resumed phenol operations in Japan using BZ as feedstock)

YoY • A/C GRM decreased mainly from lower Mkt GRM & more stock loss • A/C GIM also drop from PX spread tumbled on softened polyester

demand & additional PX supply • Lower utilization rate from major refineries’ T/A

Source : PTT, Refining Associates Note: Weighted Avg. GRM of PTT’s associates’ complex refineries (TOP, SPRC, BCP, and IRPC) Weighted Avg. GIM of PTT’s associates’ integrated refineries (TOP and IRPC) Account GRM/GIM = Market GRM/GIM + Hedging Gain/Loss + Stock Gain/Loss

(0.16)

0.95

(0.90)

GRM/GIM

Refinery Utilization

USD/BBL

A/C GRM A/C GIM

Mkt GRM

Dubai

Net Income (100%)

U-Rate (%) Q1/14 Q4/14 Q1/15

Aggregated U-Rate

85 97 97

TOP 105 108 106

IRPC 80 84 84

SPRC 60 103 105

BCP 82 85 91

Aggregated Intake (KBD) 761 662

QoQ: 0.1% YoY: 15%

760

1,120 SPRC: -213

3,783

-54

2,094

TOP: -2,175

9,307

2,453

178

IRPC:22

42

544

1,258

BCP: 380

3,963

3,200

Q2/14 Q3/14 9M/13 9M/14

MMTHB

BCP

IRPC

SPRC

TOP

4,650

-1,986

7,916

54% YoY 143% QoQ

17,094

(38 days ) T/A

Aromatics Aromatics Production

BZ-ULG95

PX-ULG95

+ Insurance Compensation : 521 MB in Q2/14 + Recognized revenue (of 743 Baht million) from fully-operated all 3

phases of Solar Power Plant - Lower A/C GRM (9M/14= 5.34$/bbl, 9M/13 =7.45$/bbl) - Lower U-Rate (T/A 46 days in Q2/14)

TOP 6,854

SPRC 4,050

BCP 763

IRPC 502

- Lower A/C GIM (9M14= 4.70$/bbl, 9M13=8.27$/bbl) from weaken crack spreads and PX spread

- Stock loss due to drop in Dubai price (9M14 stock loss 3,985 MMTHB while 9M13 stock gain 1,378 MMTHB)

- Lower integrated intake from planned major T/A of refinery and aromatics plant (Mid June- End July ~ 46 days)

- Pressured Aromatics : PX margin tumbled

+ Non-recurring items: insurance claim (710 MB), reverse impairment (470 MB), sales of investment (150 MB), etc.

- Lower A/C GIM (drop by 1.3$/bbl) from; the stock loss (decrease 1.44$/bbl), and Mkt GIM decrease (by 0.77$/bbl) while increase in oil hedging gain (increase 0.92$/bbl)

- T/A 23 days (18 Mar – 9 Apr)/ Fire incident on 9 June

- Lower A/C GRM (9M14= 2.72$/bbl, 9M13=5.34$/bbl) - Plant Turnaround: 8 Feb – 7 Apr (total S/D)

9M14 Vs. 9M13

Split stack to bar graph like GRM/GIM

(20,812)

11,968 YoY: 274% QoQ: >1,000%

TOP

SPRC

BCP IRPC

Refining BU: Higher GRM’s and no shutdown provided better performance

22

3,200

BZ: 66% YoY

PX: 7%

-0.90 -11.23 -4.25 Stock Gain/Loss

T/A

(23 days )

BZ: 53%

QoQ

PX: 1%


A/C GIM QoQ: 380%

YoY: 13% USD/Ton


Refineries : Subsequent/Projects Updates

23


Ongoing Projects:

LABIX : 92% progress

SPP : 74% progress

Lorry Expansion Project : COD 2H 2016

UHV: Progress 97% %, COD within 2015

JVs:

IRPC A & L : Distribute ABS Products

IRPC Polyol & PCC Rokita SA (Poland) : High value specialty products

IRPC Clean Power :To produce electricity and steam for EGAT’s SPP and UHV project

PPE+PPC: Focus on propylene & polypropylene chain due to solid competitive advantage (Total PP Capacity 775 KTA)

Divestment of Shares in BCP (27.22%) to Vayupak Fund 1 15.25% and the Social

Security Office 11.96%

IPO: Target within 2015


http://www.thaioilgroup.com/

1,555 1,448 1,188

1,562 1,459

1,149

Q1/14 Q4/14 Q1/15

91%

63%

89%

4.48 4.91 5.98 4.12

(7.69)

4.17

Q1/14 Q4/14 Q1/15

380 320

217

386 401 333

Q1/14 Q4/14 Q1/15

Net Income (100%)

Aromatics

Unit : MMTHB

6,320

-4,780

5,631

Q1/14 Q4/14 Q1/15

PTTGC

HMC

Others 7,948

618 691

558 643

Q2/14 Q3/14 9M/13 9M/14

Olefins U-Rate 77%

101% 96%

Olefins

HDPE-Naphtha

USD/Ton

BTX U-Rate

101% 101% 102%

Refineries

CDU U-Rate

Stock G/L

A/C GRM Mkt GRM BZ-Cond

PX-Cond

(0.91)

1.11

(0.69)

-0.69 -14.68 -1.50 Stock Gain/Loss Net NRV

Petrochemical BU: Pressured Olefins prices alleviated by Refinery and Aromatics margins

6,944

A/C GRM YoY: 1% QoQ 154%

QoQ

- Refinery business dip as A/C GRM decreased

(Q3/14 =1.64$/bbl, Q2/14= 5.83$/bbl) from stock loss (Q3/14 =

-2.76$/bbl, Q2/14= +0.73$/bbl) with maintained U-rate

+ Olefins business better from higher U-rate in Q3 (with full GSP#5 resumption), and improved Olefins spread

+ Aromatics business recovered from both PX and BZ spreads (PX spread rose by 43% from 334 $/Ton in

Q2’14 to 479 $/Ton in Q3’14 as well as BZ enhanced by 16% from 370 $/Ton to 431 $/Ton)

+There was one-off transaction from Vencorex (French entity) in Q2’14 amounted 1,180 MB (consisted of asset impairment 750 MB and provision cost of employee & others 430 MB according to implementing new strategy)

YoY

+Olefins improved: most spreads largely improved (HDPE-Naphtha: 9M14= 642$/ton,

9M13= 558$/ton)

- Refinery declined: A/C GRM decreased (9M14

=3.84$/bbl, 9M13= 5.06$/bbl) from stock loss (9M14= -0.93$/bbl, 9M13= 0.73$/bbl)

- Aromatics downturn: PX spreads tumbling (drop by 30% from 573 $/Ton in 9M13 to 400 $/Ton in 9M14)

- Vencorex restructuring cost and impairment in

Q2/14 amounted 1,180 MB

HDPE Price

PP Price

HDPE: 24%

YoY

PP: 26%

24

BZ-Cond: 43%

YoY

PX:-Cond 14%

BZ-Cond: 32%

QoQ

PX-Cond: 17%

(3,652)

HDPE: 18%

QoQ

PP: 21%

YoY: 13% QoQ: 290%


166 164 219

USD/Ton USD/BBL

Mkt P2F YoY: 32% QoQ 34%

AromaticsMkt P2F


Petrochemical : Project Updates

25


Project Timeline

• Phenol II :

Progress 97%

COD: 4Q15

• TOCGC :

Progress 85%

COD: 3Q15

• ARO 2

Debottlenecking:

Progress 76%

COD: 4Q15

• HDI Derivatives

Plant:

Progress 72%

COD: 4Q15

• PO/Polyol:

COD: 4Q19

• Indo Petrochemical

Complex:

FID: by 2Q17

COD: 2022

• US Petrochemical

Complex:

FID: 3Q16

COD: 4Q20

• HDI Monomer:

COD: 2Q16

• mLLDPE:

COD: 2018

PT

TG

C

M&

A


68

59 56

45

37 34

78

64 66

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

Other Businesses : Coal - SAR (95.26%) Cost reduction initiative relieved the effect of continuing coal price decline

EBITDA & Net Income (100%)

Sales Volume

Key Highlights

MMUSD

USD/Ton

1,958 1,645

1,968

941

598 573

2,899

2,243 2,541

Q1/14 Q4/14 Q1/15

kTon

Jembayan

Sebuku

Avg. Selling Price

Cash Costs

13% QoQ

Avg. Selling Price & Cash cost

New Castle

18%

12% YoY

47.7 32.4

1,027%

NI 9.5

-1.1

Q1/14 Q4/14 Q1/15

EBITDA 11%

42.6

10.2

EBITDA

15%

24%

5%

3%

8%

QoQ

• Sales volume increased ahead of low season from increased spot sales in February, following higher price.

• Cash cost improved from cost saving initiatives, including negotiation of new fuel oil supply and light vehicle contracts used in Sebuku and Jembayan.

YoY

• Sales volume decreased as coal price dropped from oversupply

• Net income increased as efficiency improvement and cost reduction paid off.

26

NI 7%

QoQ YoY

YoY QoQ

32%



http://www.straitsasia.com/

71

356 460

Q1/14 Q4/14 Q1/15

Net Income* (100%) Sales Volume

Key Highlights

MMBaht GWh

548 % YoY

Other Businesses : Power - GPSC (22.58%) Better performance from higher power and steam sales

1,413

1,966 2,028

1,111 1,279

1,233

Q1/14 Q4/14 Q1/15

‘000 Ton

Capacity*

44 %

4 % 11 % 29 % QoQ

*Adj.TFRIC 4

QoQ

• Higher power sales volume mainly due to Sriracha plant unplanned shutdown in Q4’14.

• Hence better performance /net income.

YoY

• Power sales volume increased due to Sriracha plant planned shutdown in Q1/14.

• Steam sales volume increased mainly from higher customer demand.

• Better performance due to higher power and steam sales.

Power

Steam

3 %

27

Diversified Assets Total Capacity: 1,851 MW

Natural Gas Hydro Renewable

1,472 MW (79%)

347 MW (19%)

32 MW (2%)

Natural Gas Hydro Renewable* Exclude capacity of steam and water

Power Steam



YoY QoQ

http://www.straitsasia.com/

Other Businesses : Power – GPSC (22.58%) Project Updates

Highlight Activities 2015

Solar Power Plant in Japan

• GPSC acquire 99% share on Ichinoseki Solar Power - 1 GK company

• Size : 20.8 MW • COD: approximately 2017

28



2014 2015 2016 2017 2019

1,315 MW

+23 MW

+38 MW

2,451-2,851 MW

+154 MW

+321 MW

Equity story ควร compare กบับรษัิทใน ตลท. Size ของเราเทยีบกบัเคา้เป็นยังไง ท าไมคนควรซือ้ GPSC

2014 2015 2016 2017 2019

GPSC, BIC, RPC, CHPP, TSR

IRPCXP Phase I

NNEG IRPCCP Phase II, BIC, NamLik1

XAYABURI

Additional 600-1,000 MW during 5 years

Total Capacity in 2019

GPSC’s Growth Strategy

Waste Management Project

• Biomass Power Plant in Rayong Province • Size : 6-9 MW of electricity • GPSC is in a process of preparing related contracts

and agreements.

Secured 1,851 MW

Additional 600-1,000 MW

64% Natural

Gas

12% Hydro

11% Renewable

12% Coal

GPSC’s aspiration MW breakdown

in 2019

28

28,538

(26,649)

22,584

Q1/14 Q4/14* Q1/15

104.5 74.4 51.9

PTT Consolidated Performance: Q1/2015

Dubai (USD/BBL) Q1/15 Q1/14

30%

48%

13%

5% 4%

48%

12% 6%

14%

16%

4%

PTT - Oil & Trading

PTT - Gas

Others

PTTEP

684,301 643,851

515,583

Q1/14 Q4/14* Q1/15

25%

29% 15%

21%

10%

PTT

PetChem

Others

PTTEP Refining

Net Income

Unit : MMTHB

EBITDA

Net Income

Revenue 47%

18%

6%

13%

15% 1%

PTT - Oil & Trading

PTT - Gas

Others

PTTEP

Revenue

EBITDA

53%

12%

5%

12%

17% 1%

53%

18%

7%

14%

6% 2%

Revenue

EBITDA

Net Income

30%

46%

17%

-5% 4%

72%

17%

7% 4%

69%

24%

4%

3%

Revenue

EBITDA

Net Income

Q4/14

78,726

51,854 71,739

Q1/14 Q4/14* Q1/15

29

PetChem

Refining

PetChem

Refining

25% YoY

20% QoQ

9% YoY

38% QoQ

21% YoY

185% QoQ

*Not restated


0.4 0.3

1.4

1.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

(0.1)

0.1

0.3

0.5

0.7

0.9

1 2

Other Liabilities

PP&E

Others Non-

current Assets

Other Current Assets

L/T Liabilities (incl. due within 1 yr)

Total Equity

MMTHB

Cash & S/T Invest

31 Dec 13 30 Sep 14

1,805,041 1,818,746

Statement of Financial Position

PTT Ratings at Sovereign Level

− FC : Moody’s (Baa1), S&P (BBB+),

JCR (A-), FITCH (BBB+)

− LC : Moody’s (Baa1), S&P (BBB+),

JCR (A), FITCH (A-)

Net Debt/EBITDA ≤ 2.0

Net Debt/Equity≤ 1.0

1,105,147 1,104,299

441,067 439,361

387,484 349,725

316,757 351,572

1,054,694 1,078,330

697,000 688,090

498,761 478,537

1 2 3 4 5

0.2%

2,244,957 2,250,455

31 Mar 15 31 Dec 14

Assets slightly declined :

• Drop in inventory and A/R was primarily from

international trading business due to reduction in

inventory in transit, as of year-end 2014

30


2014 Q1/2015

7.71 8.75

13.43

22.40

30.5734.14 34.82

18.3321.06

29.58

37.24 36.58

32.52

19.33

2.50 2.85 4.006.75

9.25 10.50 11.508.00 8.50

10.2513.00 13.00 13.00

11.00

25% 25%

32.4% 32.6% 29.8% 30.1% 30.3% 30.8% 33.0%43.6% 40.4% 34.7% 34.9% 35.5% 40.0%

56.9%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Dividend Policy & Historical Payments

PTT’s minimum payout ratio

PTT is firmly committed to pay dividend at no less than 25% of net income

Baht / share

EPS

DPS

Dividend payout

6.00

5.00

Interim

31


Gas 55%

Oil &Trading

R&D, Others 5%

M&A and

Investment Oversea

LNG

Infrastructure 2%

34,88519,398

33,876 40,008 36,751

9,149

4,708

7,0402,882

2,7773,311

5,763

2,2141,177

1,222

24,416

9,034

19,432 16,906 18,169

5,519

22

19 15 7

2015 2016 2017 2018 2019

InfrastructureInvestment in Joint Venture and Its subsidiariesR&D and OthersOil and International TradingNatural Gas

Unit: MMTHB

PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 299 bn* ($9bn) during 2015-2019

CAPEX Breakdown : 5 Years

By Business Unit

JV &

Investment in

Subsidiaries

29%

32

38,925

60,988 58,926

77,280

62,581

4th pipeline & extension

New Station Development

LNG, M&A and Investment Oversea

32

32

CAPEX revision :

• CAPEX lower by ~ $1 bn from $10 bn previously

• Reduction mainly from the 2nd Phase of LPG import facilities

project (Oil BU), given potential fall in LPG import

• Investment in Gas BU maintained, incl. NG transmission pipeline,

LNG import capability enhancement


Overview

Performance Q1/15

2015 Outlook

Contents


33

: - Low Oil Price helps to support private consumption - Fed possibly delays plan to increase policy rate to 2H’15

: - Accommodative policy measures help to boost domestic demand

: - Exchange rate volatility

34

Economic Outlook : Challenges Ahead

US Market : Economy continue to grow

: - Appreciation of US dollar affected export. EU market: Sign on Recovery

: - Positive sign of EU economic recovery resulted from QE : - Risks of deflationary and debt issues especially in Greece

China market: conservative growth : - Accommodative monetary policy to maintain GDP growth

target at 7.0%

Thailand market: Expected to slowly recover : - Tourism continues to recover after the cancellation of Martial law

: - Delays in government investment projects - Slower-than-expected recovery in export sector

34

AEC market : Government measure to boost economic growth

: - Weak industrial production and the stagnation in real estate sector

PTT Performance: resilient earning amid low oil price environment : - Energy reform on track

: - Uncertainty on Global Economics affects to global reference price


Still-on-going in shale production

Lower-than-expected heating demand as mild weather

Factors to watch

US LNG Export Terminal Projects

Source : EIA Annual Outlook, April 2015

Henry Hub Natural Gas Price Forecast

Henry Hub / JKM Price Outlook: Gas price trend to move lower from higher supply

LNG Global Demand/Supply

Korea and China LNG demand are lower-than-expected as Nuclear Reactor starting up as well as slow economy respectively. Mild Weather in winter swept across North Asia region

Japan-Korea Market Price Forecast

Excess Supply expected in L-T

Expected JKM price Y 2015

7-9 $/MMBtu

Factors to watch

Average JKM price 2014 = 14.89 $/MMBtu

Current price @ 7.15 $/MMBtu

Yemen LNG declared FM as result of security deterioration in LNG Plants North Asia buyers might have additional demand during summer period

35


93.0 92.7

94.1

94.7 94.5

95.1 95.2 95.1

-0.5

0.5

1.5

2.5

3.5

4.5

91

92

93

94

95

96

Q1/15 Q2/15 Q3/15 Q4/15

MBD MBD

World oil Demand(LHS) World Oil Supply(LHS)Stockbuild*(RHS)

56.85 56.60 57.96 60.25

62.16 64.26 65.74

66.40

30

50

70

90

110

Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15WTI Brent Dubai Dubai Forecast (PTT Group PRISM) Column2

2014 Dubai $96.6/bbl

Dubai Forecast Y2015 Range $50-60/bbl

106.2 106.3

105.6 105.7 106.0

Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14WTI Brent Dubai Dubai Forecast (PTT Group PRISM) Column2

2013 Dubai $105.5/bbl

2014 1H Dubai $105.3/bbl

Dubai Forecast 2H 2014 Range $105-$107/bbl

Clearer sign of the U.S. production growth slowdown

Geopolitical tension in Yemen, Libya

Market expect production policy change in Saudi Aramco after major reshuffles of top management

“World Oil Supply surplus trend to lower in 2H 2015 mainly from the U.S. oil production growth show sign of deceleration”

Dubai $105/bbl

Dubai $105/bbl

Dubai $103/bbl

Source: (PTT Group) Estimated (27.04.2015)

Revised

Crude Oil Outlook: Oversupply conditions persist

Prospects of Iran Sanctions being lifted following a comprehensive deal over its nuclear programme

Peak Global refinery maintenance in Q2/15

Crude Oil Price Forecast in Y2015 range bound 50-60 $/bbl

Psychology level @ 100 USD/BBL

Factors to watch

World Oil Demand/Supply Balance

Source: BOAML , IEA, P Geopolitics

surplus

surplus

surplus surplus

US

D/b

bl

36


Source: FACTS, DB, KBC, Reuters , IEA, Reuters, Thaioil and PRISM Estimated ( May 2015)

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15

Schedule refinery turnaround in North Asia in Q2/15

Delayed refinery expansion in India

Forecast

GO

Mogas

FO High fuel oil inflows from Russia

New Barrel from new ME refinery

Singapore GRM Forecast in Y2015 to be around 7-8$/bbl Factors to watch

“Demand & Supply in AP/ME improved from earlier expected as a result of the postponement of Indian refinery start up”

Refinery Margin Outlook : Refinery turnaround season in Q2/15 effect products supply tighten

CDU Additional Vs Additional Demand –AP&ME

V Note: Adjusted capacity based on start-up period (Effective additional capacity) Source: FACTs Semi Annual Reports, October 2014, reuters, Bloomberg, TOP estimate

US

D/b

bl

37


New supplies in regional weight down market sentiment

0

200

400

600

800

1,000

Ja

n-1

4

Ju

l-1

4

Ja

n-1

5

Ju

l-1

5

Spread HDPE Spread PP

US

D/T

on

Olefins Product Spread

Petrochemical Outlook: Strong ethylene and propylene prices due to tight demand/supply

Source: HIS, ICIS and PRISM

Asia Ethylene Supply/Demand Balance

Factors to watch

Y 2015

Asia Propylene Supply/Demand Balance

Anticipated tight supplies and demands for PE and PP

38

Poor affordability for PE derivatives

Stable-to-firm energy price

Olefins Product Spread Forecast in Y2015

• HDPE-Naphtha expected to be around 640-890 USD/TON

• PP-Naphtha expected to be around 570-810 USD/TON


Petrochemical Outlook: Better Benzene and PX sentiments driven from stable-to-firm in crude oil price

Stable-to-firm crude oil price

New benzene capacity and production in Asia together with the extremely large scale of new PX plants.

Aromatics Product Spread

Factors to watch

0

100

200

300

400

500

Ja

n-1

4

Ju

l-1

4

Ja

n-1

5

Ju

l-1

5

Spread BZ Spread PX

US

D/T

on

Source: HIS, ICIS and PRISM 39

Demands from new downstream derivative SM and phenol plants

China economy expands slower than expect

Ca

pa

cit

y A

va

ila

ble

%

Aromatics Product Spread Forecast in Y2015

• BZ-Naphtha forecasted to be around 140-310USD/TON

• PX-Naphtha forecasted to be around 310-390 USD/TON


Thank you PTT Public Company Limited – Investor Relations Department

Tel. +66 2 537-3518, Fax. +66 2 537-3948, E-mail: [email protected] Website: http://www.pttplc.com

Disclaimer

The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking

statements that reflect our current views with respect to future events and financial performance. These views are based on assumptions subject to various risks and

uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ

materially from those projected.

Petroleum Reserves and Resources Information

In this presentation, the Company discloses petroleum reserves and resources that are not included in the Securities Exchange and Commission of Thailand (SEC) Annual

Registration Statement Form 56-1 under “Supplemental Information on Petroleum Exploration and Production Activities”. The reserves and resources data contained in

this presentation reflects the Company’s best estimates of its reserves and resources. While the Company periodically obtains an independent audit of a portion of its

proved reserves, no independent qualified reserves evaluator or auditor was involved in the preparation of reserves and resources data disclosed in this presentation.

Unless stated otherwise, reserves and resources are stated at the Company’s gross basis. This presentation may contain the terms “proved reserves”, “probable reserves”,

and/or “contingent resources”. Unless stated otherwise, the Company adopts similar description as defined by the Society of Petroleum Engineers.

Proved Reserves - Proved reserves are defined as those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable

certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government

regulations.

Probable Reserves - Probable reserves are defined as those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be

recoverable.

Contingent Resources – Contingent resources are defined as those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from

known accumulations, but which are not currently considered to be commercially recoverable. The reasons for non commerciality could be economic including market

availability, political, environmental, or technological.

40

mailto:[email protected]

http://www.pttplc.com/



TFRS 10 : Consolidated Financial Statements:

Change in definition of control of a subsidiary to be more comprehensive, by assessing “De Facto Control” criteria.

8 associates in PTT Group changed to subsidiaries, namely, PTTGC, TOP, IRPC, GPSC,

TP, PTTES, PTTME, and PTTICT

Hence, changed from “equity method” to “line-by-line consolidation”

TFRS 11 : Joint Arrangements:

Change in the recognition of share of income from investment in a joint venture.

PTT ceased “proportionate consolidation” and applied “equity method”

In 6 joint ventures, namely, TTMT, TTMM, DCAP, PTTMCC, PTTAC and HMC

New accounting policy adoption: Pack 5 Significant impacts on PTT Group consolidated financial statements

2 options : 1.Proportionate Consolidation 2.Equity Method

Past

Only one method: Equity Method

Present

Impact to FS

Income Statement :

Revenue decreased 8%

EBITDA increased 17%

Net Income

Balance Sheet :

Assets increased 26%

Liabilities increased 31%

Equity increased 22%

Significantly

increased

41


No Impact

42


Pack 5 Adoption: PTT Group Accounting Structure Change

43

Debt Profile : Control Cost & Manage Risk

Debt Portfolio

Managed debt according to financial risk and policy

Consolidated PTT Only Unit : MMTHB

: Cost of debts ~ 4.58% : % fixed-rate ~ 77% : Avg. debt life ~ 8.18 years

: Cost of debts ~ 4.50% : % fixed-rate ~ 74% : Avg. debt life ~ 7.03 years

181,399 204,560 198,053 208,298

384,548 380,554

125,972 83,985 82,971

259,665

305,127 300,507

307,371 288,545 281,024

467,963

689,675 681,061

31 Dec 13 31 Dec 14 31 Mar 15 31 Dec 13 31 Dec 14 31 Mar 15

USD THB

(35%)

(65%)

(29%)

(71%)

(30%)

(70%)

(49%)

(51%)

(44%)

(56%)

(44%)

(56%)

Note : Data as of 31 Mar 15 (THB/USD = 32.7028 THB/JPY = 0.273534) Excluding liabilities from finance leases; Cost of debts includes withholding tax. 43

PTT Group Performance : Q1/2015

% share

Unit : MMTHBQ1/14

(Restate)Q1/15 YoY

Q1/14

(Restate)Q1/15 YoY

PTT Net operating Income 13,711 6,638 -52% 13,711 6,638 -52%

E&P - PTTEP 12,435 8,616 -31% 65.29% 8,422 5,616 -33%

- PTTGC 6,320 5,631 -11% 48.89% 3,050 2,684 -12%

- HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/

PTTME/PTTMCC/PMMA1,628 1,313 -19% 40-50% 766 635 -17%

Petrochemical 7,948 6,944 -13% 3,816 3,319 -13%

- TOP 2,468 4,498 82% 49.10% 1,243 2,217 78%

- IRPC 344 3,832 1014% 38.51% 202 1,571 678%

- SPRC -1,174 2,601 -322% 36.00% -335 679 -303%

- BCP 1,562 1,037 -34% 27.22% 416 273 -34%

Refining 3,200 11,968 274% 1,526 4,740 211%

Inter - PTTER, PTTGE -591 -347 -41% 100% -591 -347 -41%

Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 1,434 1,111 -23% 50-100% 1,018 1,042 2%

Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 301 854 184% 20-30% 94 259 176%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others 971 1,463 51% 33-100% 542 1,317 143%

Others Business 2,115 3,081 46% 1,063 2,271 114%

Shared of Net Income from Affiliates 25,698 30,609 19% 14,827 15,946 8%

PTT Conso. Net Income 39,409 37,247 -5% 28,538 22,584 -21%

Performance 100% Equity Method % PTT

44

Free Cash flow

52,027 16,713

Investing

Q1/14 -39,231

Q1/15 -87,624

CAPEX(PP&E, Intangible asset) -40,213 -46,059

Investment (Sub. &Affiliates) -635 -568

Dividend/Interest Received 830 1,276

Others 787 -42,273

Operating

Q1/14 91,258

Q1/15 104,337

Net Income 28,538 22,584

Changes in assets & liabilities 11,749 43,082

Income Tax -3,104 -2,037

Non-Cash Adjustment 47,429 34,450

Interest-net 6,646 6,258

Ending Cash & Cash Equivalents

243,335 224,980

Beginning Cash and Cash Equivalents

196,854 234,212

Cash In/(Out)

46,481 -9,232

Adjustment

-1,118 1,019

Financing -4,428 -26,964

Repayment Loans -23,801 -12,859

Interest paid -8,535 -7,835

Dividend paid -361 0

Received from share issue -359 113

Received from loans/Bonds 28,628 -6,383

Statements of Consolidated Cash Flows : Q1/2015

45

45

46

Free Cash flow

21,672 -597

Financing -2,627 -8,378

Repayment Loans -644 -6,645

Interest paid -2,934 -2,555

Dividend paid -4 0

Received from share issue - -

Received from loans/Bonds 955 822

Investing

Q1/14 -2,629

Q1/15 -19,403

CAPEX (PP&E, Intangible asset) -6,557 -8,643

Investment (Sub. &Affiliates) -7 -300

Dividend/Interest Received 803 545

Others 3,132 -11,005

Operating

Q1/14 24,301

Q1/15 18,806

Net Income 21,558 12,083

Changes in assets & liabilities 5,266 8,046

Income Tax -740 -502

Non-Cash Adjustment -3,880 -2,563

Interest - net 2,097 1,742

Ending Cash & Cash Equivalents

82,971 48,983

Beginning Cash and Cash Equivalents

63,926 58,018

Cash In/(Out)

19,045 -9,035

Adjustment

-0.5 -60

Statements of Cash Flows (PTT Only) : Q1/2015

46

Subsidiaries Consolidate PTT (Cambodia) Co., Ltd. PTTCL 100.00% Subic Bay Energy Co., Ltd. SBECL 100.00% PTT Retail Business Co., Ltd. PTTRB 100.00% Thai Lube Blending Co., Ltd. TLBC** 48.95% PTT Tank Terminal Co., Ltd. PTTTANK 100.00% PTT Oil Myanmar Co., Ltd. PTTOM 100.00% Associates Equity Keloil-PTT LPG Sdn. Bhd. KPL 40.00% Thai Petroleum Pipeline Co., Ltd.THAPPLINE 40.40% PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00% Others Cost PetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00% PetroAsia (Sanshui) Co., Ltd. PA(Sanshui) 25.00% Intoplane Services Co., Ltd. IPS 16.67% Fuel Pipeline Transportation Co., Ltd.FPT 0.00024% Others Fair Value Bangkok Aviation Fuel Services Plc. BAFS 7.06%

Others

Subsidiaries Consolidate PTT Exploration & Production Plc. PTTEP 65.29% PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00% PTT LNG Co., Ltd. PTTLNG 100.00% Thai Oil Power Co., Ltd.* TP 26.00% Global Power Synergy Co., Ltd* GPSC 30.10% Joint Ventures Equity Trans Thai-Malaysia (Thailand) Co., Ltd. TTM (T) 50.00% Trans Thai-Malaysia (Malaysia) Sdn. Bhd. TTM (M) 50.00% District Cooling System and Power Plant DCAP 35.00%

Petrochemical Subsidiaries Consolidate PTT Polymer Marketing Co., Ltd. PTTPM 50.00% PTT Polymer Logistics Co., Ltd. PTTPL 100.00% PTT PMMA Co., Ltd. PTTPMMA 100.00% PTT Global Chemical Plc.* PTTGC 48.89% PTT Maintenance and Engineering* PTTME 40.00% PTT Energy Solutions Co., Ltd.* PTTES 40.00% Joint Ventures Equity HMC Polymers Co., Ltd. HMC 41.44% PTT Asahi Chemical Co., Ltd. PTTAC 48.50% PTT MCC Biochem Co., Ltd. PTTMCC 50.00% Refining Subsidiaries Consolidate Thai Oil Plc.* TOP 49.10% IRPC Plc.* IRPC 38.51% Refining Associates Equity Star Petroleum Refining Co., Ltd. SPRC 36.00% Bangchak Petroleum Plc. BCP 27.22% Others Fair Value Dhipaya Insurance Plc. TIP 13.33%

Subsidiaries Consolidate Energy Complex Co., Ltd. EnCo 50.00% Business Service Alliance Co., Ltd. BSA * 25.00% PTT Regional Treasury Center Pte. Ltd. PTTRTC 100.00% PTT ICT Solutions Co., Ltd.* PTTICT 20.00%

International Trading Business Group

Subsidiaries Consolidate PTT International Trading Pte. PTTT 100.00%

Remark : *The companies have changed their status to subsidiaries due to impact from PACK5 ** Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies.

Petrochemicals & Refining Business Group E&P and Gas Business Group Oil Business Group

Data as of 31 March 2014

International Investment

Subsidiaries Consolidate PTT Energy Resources Co., Ltd. PTTER 100.00%

PTT Green Energy Pte. Ltd PTTGE 100.00%

47

47

48

Natural Gas Price Structure : Jan-Mar 2015

Customers1 Sales Price Structure

Gas Pool Price Supply Margins Pipeline Tariffs + +

Power Producers 59%

: EGAT 27%

: IPP 17%

: SPP 15%

Average Purchased Gas Price

1.75%

1.75%

9.33%

21.9 Bt/MMBtu

GSP 20% Charged at the same price structure of power producers

Petrochemicals Feedstocks

Reference to Saudi Aramco’s contract price

Industry 14% Charged at prices comparable to fuel oil

Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns.

NGV 7% Capped at 13.00 Baht/Kg from Jan 2015

Ethane, Propane, LPG Profit-sharing mechanism based on market prices of petrochemicals

NGL Reference to Naphtha market price

Local Cooking Gas

Export Cooking Gas

At GSPs cost (adjusted every 3 months)

• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions

1 As at March 2015

48

Natural Gas : Strong and Increasing Demand over Long Term Natural gas is a fuel of choice for power producers and transportation industry

49 Source : PTT

Thailand’s Projected Energy Demand

50

Primary Energy Consumption

Source : EPPO/ PDP 2015 Preliminary ( Jan 2015) / PTT analysis as of Jan 2015

0

500

1000

1500

2000

2500

3000

3500

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

32%

40%

15% 11%

Oil

Natural Gas

Coal/Lignite

Hydro/Import

KBD

Renewable

2%

2,438

2,052

31%

38%

16%

13% 2%

28%

34%

20%

5%

13%

2,840

29%

36%

18%

4%

13%

3,240

Gas Business Generates Stable Returns

Sole owner and operator of entire

gas transmission pipelines in

Thailand (> 3,000 km), a regulated

business

• IRROE ranges between

12.5% - 18% for transmission

pipeline investment

Supply & marketing of natural gas

provides fixed margin with long-term

contracts of 25-30 years

6 Gas Separation Plants; Total

production 6.7 MTA; are on

petrochemical market price-linked

profit sharing basis

Overview Gas transmission pipeline capacity

Phu Hom

Nam Phong

Thailand

Ban I Tong

Ratchaburi

Nakhon Sawan

SBK

NBK

The Luang

Nakhon Ratchasima

Kaong Khoi

Samut Prakan

ESB

Bang Pakong

Khanom

Songkhla

Sadao

Yadana

Yetagun

Chon Buri

Rayong

Wang Noi

Thai-Malaysia

(JDA)

Arthit

Arthit–FPSO Erawan

Pailin Bongkot

South Bongkot

Chevron–Additional

Platong

Tantawan

Benchamas

Natural gas fields

Power plants Gas separation plant

1,2,3,5,6 in Rayong

Gas separation unit 4

in Nakhon Si Thammarat

Existing pipeline

Future pipeline

Andaman Sea

51

51

Energy Price Reform: LPG Prices

CP-20 $/ton or 423 $/ton

Lifted GSP Capped Price from 333 USD/TON to reflect GSP Cost

GSP 3.6 Mil. Ton

(48%)

Imported 2.0 Mil.

Ton (27%)

Refinery 1.9 Mil.

Ton (25%)

488 $/TON

or 16.11 ฿/kg

CP+85 $/ton or 528 $/ton

498 $/ton

*CP Jan’15= 443 $/ton

Tax 2.39 ฿/kg

Margin 3.26 ฿/kg

Oil Fund 0.82 ฿/kg

VAT 1.58 ฿/kg

Oil Fund AS

CLEARING HOUSE

Margin 3.26 ฿/kg

VAT 1.19 ฿/kg

Tax 2.39 ฿/kg

No oil

Fund

24.16 ฿/kg

18.13 ฿/kg

Cooking

Transport

Industrial

Low income

Need subsidy

4.81 ฿/kg

LPG prices for Petchem : not controlled, but linked to market price and/or contract price

52

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investor update may 2015 - listed...

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