investor update september 2015 - listed...

Investor UpdateSeptember 2015

Overview

Performance

2H/2015 Outlook

Overview Performance 2H/2015 Outlook

Contents

1

Indigenous (20%)

Imported Refined Petroleum Products 68 KBD

912 KBD (**)

Source: PTIT

Remark : (*)Refined product from refineries = 955 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 102 KBD

(**) Not included Inventory

KBD = Thousand Barrels per day

Import (80%)

Crude/ Condensate893 KBD

RefinedProducts1057 KBD*

Domestic

Crude/ Condensate 247 KBD

Supply Production Sales

Export

199 KBD

Oil Balance Thailand: Jan – Jun 2015

247 KBD

Adequate refining capacity maintains the stability of supply

Total Refining Capacity in Thailand: 1,087 KBD

PTT’s Associated Refineries : 790 KBD

(TOP, PTTGC, SPRC, IRPC)

Other Refineries : 297 KBD(ESSO, BCP)

RefinedProducts199 KBD

2

Crude Export 0 KBD

961 KBD


Chevron28%

PTTEP30%

Others42%

Natural Gas Balance: Jan – Jun 2015

Gulf of Thailand (70%)

Power (60%)

Industry (14%)

NGV (6%)

Petrochemical Feedstock

(14%)

IndustryHousehold

Transportation(6%)

Ethane/ Propane/LPG/NGL

LPG/NGL

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

3,430 MMSCFD

Main driver of the Thai economy

Supply Production Sales

3

LNG28%

Myanmar72%

Bypass Gas920

MMSCFD

943 MMSCFD (20%)

Methane 1,567 MMSCFD

Onshore (3%)

146 MMSCFD

6 GSPsTotal Capacity

2,740 MMSCFD @ Actual Heat

Import (27%)

1,297 MMSCFD


81%

71%19%

29%

2001 2014

Revenue

Net Income

Affiliate

PTT

702

1,716

IPO

1 As of 30 June 2015 : Avg.THB/US$ exchange rate of 33.882 As of December 2014

Largest company on Thai Stock exchange

Market cap ~US$60bn1 or ~ THB 2.0 trillion1

Group companies:14.4%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 2 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 1,409 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 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

2014Best 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

93rd Fortune Global

500 in 201584th in 2014

81st in 2013

95th in 2012

Platts Top 250 Global Energy

Company

24th Overall Global

Performance in Asia of 2014

180th in 2014144th in 2013

167th in 2012

171th in 2011

Dow Jones Sustainability

Index (DJSI)

DJSI Member 2013-2014

(Listed in 2011)

4

PTT is Thailand’s Largest Energy Company


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

Thai Ministry of Finance

51%

VayupakFund1

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 GPSC Total Others

Market cap (BNUSD)2 30.3 12.8 9.2 3.3 2.7 1.1 60.2 357.2

% of SET 7.3% 3.1% 2.2% 0.8% 0.6% 0.3% 14.4% 85.6%

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 30 June 2015/ Avg. THB/US$ exchange rate of 33.88

5


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

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 ActivitiesCompany PTT’s holding (%)

6

PTT Energy Resources 100% Coal Business

Power


PTT AspirationStrategic 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 93rd

Big

Technologically Advanced and Green National Oil Company


7,141 1,512

12,418

16,427

7,480

5,982

2,747

25,011

15,657

20,277

6,482

3,308

11,082

7,420

7,532

1,879

5,577

1H/2014 1H/2015

Petrochem

Olefins business declined from Polymer price dropped Refinery’s margin increased 19% Aromatics improved: P2F margin raised 73%

PTTEP

PTT

Others

Refinery

Petrochem

57,895

197%

2%

235%

68%

37%

1H/15 Performance: PTT Group: Integrated business model proves resilient

8

MMTHB

*including petroleum exploration expenses and royalties

OilVol. increased 1%Performance decreased from stock losses

TradingVol. increased 13% Margin dropped 62% from condensate business

Higher performance of others mainly from

PTTLNG, PTTT and divestment of BCP

Margin

FX gain OPEX*

Share of

income

Interest expense &

income taxes

Other Income

20%

46,330

NCI

PTTEP

Others

Refinery

Avg. A/C GIM increased 50%

Aggregate intake increased 14%

GasGSP and Industrial selling prices dropped

NG Sale Volume increase 5% mainly from new IPPs


Sales volume increased 6%Performance declined following lower product prices and higher DD&A

Contents

Overview

Performance

2H/2015 Outlook


9

264

35

940

299

Non-recurring*** Net Income

Q1/15

E&P : Net profit lower from non-recurring items

Product Prices

Net Income (100%)

Sales Volume

Key Highlights

8.03 7.29 7.96* 7.66

50.12 59.34

102.82

54.83

48.74 48.4766.35**

48.61

Q1/15 Q2/15 1H/14 1H/15

Liquid ($/BBL)

Gas($/MMBTU)

Weighted Avg.($/BOE)

MMUSD

232 227 203 229

95 99104

97

Q1/15 Q2/15 1H/14 1H/15

326

Liquid

Gas

KBOED

327

10

* Gas price, if excludes Vietnam 16-1 retroactive sale recording, is 8.04$ for 1H 14

** Average selling price, if excludes Vietnam 16-1 retroactive sale recording is 66.84$ for 1H 14

307

Q2/15

QoQ

• Avg. selling price decreased, mainly from lower gas price according to lagging price adjustment formula

• Sales volume decreased slightly from Myanmar gas field and Arthit shutdown

• Net income declined, mainly from higher exploration expenses and non-recurring items, i.e., deferred taxes from USD functional currency, FX loss & oil price hedging

HoH

• Avg. price significantly decreased from a slump on oil price • Volume increased from Zawtika full production & Hess acquisition• Net income declined from lower product prices & higher DD&A

from newly completed projects and loss on non-recurring items in Q2/15

18%

0.6%

6% HoH0.3% QoQ

1H/14

68% HoH

87% QoQ

E & P Gas Oil & Trading Refining PetChem Others


9%

47%

27%

4%

326

1H/15

16

(159) (141)

11

*** Includes Gain/(loss)on FX, Deferred tax from Functional currency, Current Tax from FX Revaluation, Gain/loss from Financial instruments, H1 incident Insurance Claim, and etc.

…2025

E&P Roadmap:Deliver operational excellence, cost savings and project development as planned Reinforcing the passion to achieve sustainable growth


11


2015 Priorities 1st Half 2015 Recap+6% PROGRESS

2015

Deliver sales volume

growth through safe and

reliable operations

Adopt a cautious

approach to pre-FID

assets and reinforce focus

on Southeast Asia

Contract 4(Ubon)

MZ Area 1

Algeria HBR

Mariana Oil Sands

Advancing towards final investment decisions

Progressing with exploration program

Cost improvement plan and revised work program

Revised growth outlook on domestic economy and increase in LNG supply

Progressing Algeria 433a & 416b project start-up

Myanmar

ExplorationMaintain active presence through appraisal programs

Monitor and prepare to

capture value-creating

opportunities

Focus on conventional assets M&A in Southeast Asia

Cautiously review potential entry opportunities into North American unconventional assets

Focus on cost optimization

and investment

prioritization

~14% reduction plan to announced budget rolled out

De-risked exploration through prioritization and rescheduling

Business Unit Q1/15 Q2/15 QoQ 1H/14 1H/15 HoH

Gas- EBITDA 9,262 14,348 55% 28,909 23,610 (18%)

• S&M 2,476 3,145 27% 10,067 5,621 (44%)

• TM 6,775 6,784 0.1% 13,504 13,559 0.4%

• GSP 916 4,380 4.78x 11,190 5,296 (53%)

• NGV (3,019) (2,488) 18% (10,019) (5,507) 45%

• Others 2,114 2,527 20% 4,167 4,641 11%

12

(Unit:MMTHB)

3,927 4,455 13% 8,652 8,382 (3%)

740 949 28% 4,391 1,689 (62%)

*MIS** Included Gas/Oil/Trading affiliates

12

Oil-EBITDA

Trading*-EBITDA

Total** 13,929 19,752 42% 41,952 33,681 (19%)

PTT EBITDA Performance Breakdown by BU’s:


8.82

8.60

8.79 8.71

Q1/15 Q2/15 1H/14 1H/15

3% QoQ

4,704 4,685

4,4974,469

4,450

4,768 4,731 4,802 4,832 4,879

Q1 Q2 Q3 Q41,129 1,297 1,297 1,213

1,011 930 718 970

720 752711 736

985 902929 943

670 689639

680317 309

316313

Q1/15 Q2/15 1H/14 1H/15

Gas BU: Power sector drives volume growth

NG Sales Volume* NG Customer Breakdown

2013

2015

2014

MMSCFD

EGAT (25%)

IPP (20%)

SPP (15%)

GSP (20%)

Industry (14%)NGV (6%)

MMSCFD

4,6104,832

AVG.

4,688

4,855

4,589

5% HoH

NGV Sales Volume

Vol. MMCFD

317 309 316 313

QoQ

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

• NGV demand was lower, following gradual price rise amid other petros’ falling prices

HoH

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

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

Key Highlights

4,855

1% QoQ

ที่เพ่ิมข้ึนเป็นของ

* NG Sales Volume include Inter-BA Transaction

K.Ton/Day

13

1% HoH



4,879

380 359 392 370

444

505 867

475

1,188

1,375 1,563 1,282

1,148

1,343

1,572

1,246

498*

497* 333

498*

318 367

608

343

Q1/15 Q2/15 1H/14 1H/15

2,476 3,145 10,067

5,621 6,775 6,784

13,504

13,559 916

4,380

11,190

5,296

(3,019) (2,488)(10,019)

(5,507)

2,114

2,527

4,167

4,641

Gas - EBITDA

MMTHB

Others

TM

GSP9,262

Q1/15 Q2/15 1H/14 1H/15

14,348

S&M

NGV

674 609 1,305 1,283 187 166

365 353552 496

977 1,048

204 221

413 425

3 10

13

Q1/15 Q2/15 1H/14 1H/15

1,502

GSP Sales Volume

LPG (42%)

kTon

1,620

3,060

7% QoQ

2% HoH

Gas BU : Lagging feed price reduction and sell price to industrial pressured performance

QoQ

• Better GSP margin from gradually lower feed cost and higher petchemprices

• GSP sales volume declined from GSP#1 major turnaround

• Gas BU’s EBITDA significantly increased, resulting from better GSP S&M margins and lower NGV loss following price adjustment

HoH

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

• GSP: sharply lower selling prices linked to sharp-fallen petchem prices whilst feed gas cost gradually lower with lagging price adjust formula

• S&M: lower performance due to lag time between selling price to industrial customers and feed cost adjustment

Propane (12%)

NGL (11%)

Ethane (34%)

Key Highlights

55% QoQ

GSP - Reference Product Prices

PP

HDPE

Naphtha

USD/Ton

Feed Cost***

LPG Ex-GSP

* Effective on February 2, 2015** MOPS HSFO 180 CST***Revised Feed cost due to re-calculated with GSP production volume instead of sale volume

28,909

Pentane (1%)

18% HoH



3,122

23,610

14

Fuel Oil**

18%

21%

50%

45%

44%

6%

HoH

Gas Business Roadmap



GAS BU Strategies

15

-10

0

10

20

30

40

0

1,000

2,000

3,000

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

Sales vol. Export Price (RHS)

-90

-40

10

60

0

500

1,000


Sales Vol. Export Price (RHS)

0.0

0.2

0.4

0.6


5

10

15


Avg. Sales Vol. (K.Ton/day) Price (THB/Kg)

16

Industry Auto Household

Price +24%

Avg.Vol. -3%


Oil BU: Impact from Price Reform

NGV Higher price – Lower volume

M.Ton

DieselExport improved while price decline

GasolineDemand surged from lower price

M.LitreTHB/Litre

48.7535.16

29.99

25.82

10.50

13.00

M.LitreTHB/Litre

29.84

21.38

22.63

Jun-15

11.5012.50

LPG Import and Vol. dipped after restructuring

Price-24%

Avg.Vol.+10%

Export +1%

Price -14%

Avg,Vol.

+14%

Export -21%


23.96 THB/Kg

Industry -5%

Auto-12%

Household -7%

Import -43%

May-15

Total Domestic Demand -19%

May-15 May-15

108 105109

5345

59 5363 61 60

30

80

130

0.81 0.91 0.85 0.86

Q1/15 Q2/15 1H/14 1H/15

746 841 1,355 1,587

3,181 3,614

7,297 6,795

Q1/15 Q2/15 1H/14 1H/15

3,927

8,652

4,455

8,382

Oil BU : Stock loss overweight margin

Contribution Margin 1/

MMTHBTHB/Liter

1/Excluded non–oil business

17

•••

••••

Oil

Non-Oil*


* EBITDA from Operating

6,386 6,214

12,505 12,600

Q1/15 Q2/15 1H/14 1H/15

Sales Volume 2/

MM Liter

2/ Only PTT and PTTRM

1% HoH

1% HoH

3% HoH

(1,229) (119) 44 (1,348)

Petroleum Prices

Stock Gain/Loss(MMTHB)


12% QoQ

3% QoQ

Oil - EBITDA

USD/BBL

(Month-end Prices)

13% QoQ

Q4/13 Q2/14 Q4/14 Jan Feb Q1/15 Apr May Q2/15

Oil BU : Beyond traditional business



Digital Focus Retail Focus

Blue Card: Happiness in a single pass

Mileage card with Rewards and Privileges

Master Franchise“Texas Chicken”

We're the thirdrestaurant in the world. KFC is the largest QSR operator in the world with the biggest market share in most countries. We're a growing brand. We will open Pacific this Texas Chicken, founded in the US in the two brands make up one of the largest QSR chains in the world. They countries and systemUS$There are currently Asia, including Singapore, Vietnam and Malaysia, and the brand has just launched in New Zealand.

18

International Focus

52.48 62.60

105.93

57.54

17% QoQ

0.06 0.07

0.15

0.07

Q1/15 Q2/15 1H/14 1H/15

53% HoH

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

740 949

4,391

1,689

Q1/15 Q2/15 1H/14 1H/15

21,067 20,253

36,581 41,320

Q1/15 Q2/15 1H/14 1H/15

4% QoQ

Trading BU :Performance continues under pressure from squeezed margins

Contribution Margin*

Trading - EBITDA*

Sales Volume

Key Highlights

MMTHB

MM Liter

19

QoQ

• Better margins following volatile, yet improved oil prices• Sales volume lower, mainly from weaker naphtha and FO

demand

HoH• Margins squeezed from broadly lowered oil prices, hence higher

condensate discounts• Sales volume increased mainly from high GRM encouraged

refineries to maximize productions as well as no major refinery T/O

• EBITDA declined, mainly from squeezed margins of domestic condensate business

* PTT only : FX Adjustment in compliance with Accounting Standard

62% HoH


Contribution Margin (THB/Liter)

NWS ($/BBL)

46% HoH


13% HoH19% QoQ

28% QoQ

Trading BU : Growth Drivers

Colombia

Panama



20

**Performance BCP 4 mths

66%

84% 87%

75%

Q1/15 Q2/15 1H/14 1H/15

98 115

270

106

255 246 246 251

Q1/15 Q2/15 1H/14 1H/15

51.9 61.3105.3

56.6

8.34 6.97

3.44

7.64

4.75

9.70

4.22

7.27 6.71

13.13

6.68

9.99

Q1/15 Q2/15 1H/14 1H/15

GRM/GIM*

Refinery Utilization*

USD/BBL

A/C GRM

A/C GIMMkt GRM

Dubai

Net Income (100%)

U-Rate (%) Q1/15 Q2/15 1H/14 1H/15

Aggregated U-Rate

97 99 87 98

TOP 106 107 100 107

IRPC 84 89 80 87

Aggregated Intake (KBD) 668651

3% QoQ

580

AromaticsAromatics Production

BZ-ULG95

PX-ULG95

Refining BU:High GRM’s and no shutdown contribute to stellar performance

21

BZ: 17%

QoQ

PX: 4%

-3.62 2.81 -0.03 -0.35StockGain/Loss

T/A(23 days )

BZ: 61%

HoH

PX: 2%

32% QoQ


A/C GIMQoQ: 96%

HoH: 50%

USD/Ton


659

14% HoH

**Performance BCP 1 mth

255% HoH

T/A

(15 days ++)

*Adjusted to exclude BCP

IRPC

TOP

SPRC

BCP11,968

15,798

7,826

27,766

Refineries : Initiatives Roadmap



Strengthening Core Business and Beyond

1 Delta Program

Operational Excellence

Commercial Excellence

Procurement &HR Excellence

2 3UHV + PPE & PPC Projects

Specialty Products

Focus Execution TOP-GET-BEST

• Operational excellence • Margin improvement • Cost management

TOP GET BEST

• Organic growth• PTT Group collaboration

in Sriracha area• International business• Value chain

enhancement & Integrated downstream

• New business• R&D• Portfolio master plan

22

http://www.thaioilgroup.com/


Refineries : Projects Updates

23

Ongoing Projects:

LABIX : 98% progress

COD: End 2015

SPP : 91% progress

COD: 2Q16

(2 SPP: Total power capacity 239 MW)

UHV: 95% progress

COD: End 2015

PPE+PPC: Focus on propylene &

polypropylene chain due to solid

competitive advantage

(Total PP Capacity 775 KTA)

COD: 2H17

IPO: Timeline of IPO depends on the SEC’s approval process and market sentiment , among other

factors.



UHV+PPE&PPC Projects



5.98 5.40

4.46 5.68

4.17

7.59

4.99 5.92

Q1/15 Q2/15 1H/14 1H/15

102% 100% 102% 101%

A/C GRM 19% QoQ

88% 85%90%

86%

1,188

1,375 1,563

1,282 1,148

1,343 1,572

1,246

Q1/15 Q2/15 1H/14 1H/15

217 271

375

244 333

391 360 362

Q1/15 Q2/15 1H/14 1H/15

Net Income (100%)

Aromatics

Unit : MMTHB

5,6319,019

12,38114,650

Q1/15 Q2/15 1H/14 1H/15

PTTGC

HMC Others

9,608

Olefins U-Rate

96%89% 84%

92%

Olefins

USD/Ton

BTXU-Rate

Refineries

CDU U-Rate

A/C GRMMkt GRM

BZ-CondPX-Cond

-1.50 2.22 0.04 0.41StockGain/LossNet NRV

Petrochemical BU:Better refinery and Aromatics performance more than offset pressured Olefins performance

6,944

HDPEPrice

PPPrice

HDPE: 16%

QoQ

PP: 17%

24

BZ-Cond: 25%

QoQ

PX:-Cond 17%

BZ-Cond: 35%

HoH

PX-Cond: 0.6%

HDPE: 18%

HoH

PP: 21%

38% QoQ


219 216 126 218

USD/TonUSD/BBL

Mkt P2FQoQ 1%Aromatics

Mkt P2F

A/C GRM 82% QoQ


Mkt P2FHoH: 73%

15,619 16,552

6% HoH

Petrochemical : Initiatives Roadmap



25

43

16

76

58

10

-3

8 7

Q1/15 Q2/15 1H/14 1H/15

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

EBITDA & Net Income (100%)

Sales Volume

Key Highlights

MMUSD

USD/Ton

1,968 1,372

3,627 3,340 573

316

1,672 889

2,541

1,688

5,299

4,229

Q1/15 Q2/15 1H/14 1H/15

kTon

Jembayan

Sebuku

Avg. Selling Price

Cash Costs

34% QoQ

Avg. Selling Price & Cash cost

New Castle

2%

20% HoH

13%

Q1/15 Q2/15 1H/14 1H/15

EBITDA 63%

9%

35%

15%

17%

11%

QoQ

• Cash cost increased mainly from the rise in fixed cost per unit as a result of the decrease in sales volume as well as higher stripping ratio of Sebuku and Jembayan

• EBITDA & NI decreased mainly from higher cash cost

HoH

• Sales volume decreased as coal price dropped from oversupply

• Cash cost improved from cost saving initiatives, reduced admin costs and mine plan review

26

NI 130%

QoQ HoH

HoHQoQ

24%



56 55

66

56

34

46 45

40

66

60

76

63

Q1/15 Q2/15 1H/14 1H/15

EBITDA

NI

http://www.straitsasia.com/


531474

672

1,005

Q1/15 Q2/15 1H/14 1H/15

Net Income (100%)Sales Volume

Key Highlights

MMBahtGWh

50% HoH

Other Businesses : Power - GPSC (22.60%)

Better performance supported by higher sales volume

1,625 1,842

2,819

3,467

1,233 1,254

2,457 2,487

Q1/15 Q2/15 1H/14 1H/15

‘000 Ton


Capacity

Power 23%

Steam 2%

Steam 1%

11% QoQ

QoQ

• Higher power sales volume in Q2/15 mainly from increased EGAT dispatch from Sriracha plant as a result of Myanmar gas fields maintenance shutdown

• Lower performance mainly from exchange loss and expense from employee stock ownership in Q2/15.

HoH

• Power sales volume increased due to the lack of maintenance shutdown of Sriracha plant in H1/15

• Better performance due to increasing power and steam sales.

PowerSteam

Power 13%

27

Diversified Assets

Natural Gas Hydro Renewable

1,472 MW(78%)

347 MW(19%)

53 MW(3%)

Natural Gas Hydro Renewable

QoQ

HoH






Other Businesses : Power – GPSC (22.60%)Project update


28

28


48%

17%

6%

13%

15%1%

PTT - Oil &

TradingPTT - Gas

Others

PTTEP

22,584 23,746

57,89546,330

Q1/15 Q2/15 1H/14 1H/15

51.9 61.3 105.3 56.6

PTT Consolidated Performance: 1H/2015

Dubai (USD/BBL) 1H/151H/14

35%

43%

13%

6%3%

42%

14%6%

16%

19%3%

PTT - Oil & Trading

PTT - Gas

Others

PTTEP

515,583 536,678

1,344,762

1,052,261

Q1/15 Q2/15 1H/14 1H/15

14%

34%

16%

24%

12%

PTT

PetChem

Others PTTEP

RefiningNet

Income

Unit : MMTHB

EBITDA

Net Income

RevenueRevenue

EBITDA

52%

13%

6%

12%

16%1%

54%

18%

6%

14%

6%2%

Revenue

EBITDA

Net Income

71,73987,610

162,781 159,349

Q1/15 Q2/15 1H/14 1H/15

29

PetChem

Refining

PetChem

Refining

22%

4%

22%2%

20%5%


PTT Group Performance : 1H/2015 (HoH)

% share

Unit : MMTHB1H2014

(Restate)1H/2015 HoH

1H2014

(Restate)1H2015 HoH

PTT Net operating Income 25,011 15,657 -37% 25,011 15,657 -37%

E&P - PTTEP 30,621 9,928 -68% 65.29% 20,277 6,482 -68%

- PTTGC 12,381 14,650 18% 48.89% 5,904 6,657 13%

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

PTTME/PTTMCC/PMMA3,238 1,902 -41% 40-50% 1,516 875 -42%

Petrochemical 15,619 16,552 6% 7,420 7,532 2%

- TOP 4,538 10,774 137% 49.10% 2,288 5,180 126%

- IRPC 522 8,068 1446% 38.51% 276 3,099 1023%

Refining 7,826 27,766 255% 3,308 11,082 235%

Inter - PTTER, PTTGE -1,391 -2,068 49% 100% -1,392 -2,068 49%

Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 2,714 2,691 -1% 50-100% 1,977 2,397 21%

Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 1,178 1,673 42% 20-30% 348 463 33%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others 1,534 5,032 228% 33-100% 946 4,785 406%

Others Business 4,035 7,328 82% 1,879 5,577 197%

Shared of Net Income from Affiliates 58,101 61,574 6% 32,884 30,673 -7%

PTT Conso. Net Income 83,112 77,231 -7% 57,895 46,330 -20%

Performance 100% Equity Method % PTT

30


0.4 0.3

1.4

1.3

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

2014 Q2/15

Other Liabilities

PP&E

Others Non-

currentAssets

OtherCurrentAssets

L/TLiabilities(incl. due within 1 yr)

TotalEquity

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 1,121,373

441,067 434,751

387,484 381,023

316,757 307,240

1,054,694 1,122,628

697,000669,946

498,761 451,813

1 2 3 4 5

0.3%

2,244,3872,250,455

30 Jun 1531 Dec 14

Assets slightly declined :

• Drop in trade A/R primarily from international

trading and oil business

• Reduce in Cash from Bonds and Loans repayments

• Decrease in L-T investment from disposal of BCP

31

2014 Q2/2015


7.71 8.75

13.43

22.40

30.5734.14 34.82

18.3321.06

29.58

24 36.5832.52

19.3316.08

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

6.00

2 % 2 %

32.4% 32.6% 29.8% 30.1% 30.3% 30.8% 0%43.6% 40.4% 34.7% 34.9% 35.5% 40.0% 56.9% 37.3%

2001 2002 200 2004 200 200 200 200 200 2010 2011 2012 201 2014 1H2015

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

32


Gas 55%

Oil &Trading

R&D, Others

5%

M&A and

Investment Oversea

1

LNG

8

Infrastructure 2%

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%

33

33

33

CAPEX revision Y2015:

• CAPEX lower by ~ THB 22 bn from THB 77 bn previously

• Reduction mainly from:

Postpone new oversea investments

Adjust plan for new LNG receiving terminal project

• While maintaining 5-years CAPEX of Bt. 299bn


* 2015-2019 budget approved by NESDB at YE2014

Unit: MMTHB

Infrastructure

Investment in JV & Sub.

R&D and Others

Oil & Int’l Trading

Natural Gas

PTT 5-Years CAPEX Plan ̴Bt 299 bn

Overview

Performance

2H/2015 Outlook

Contents


34

: - China’s central bank uses expansionary monetary policy in order to maintain economics growth at 7%

- Property market shows a few signs of recovery

: - Low oil prices to help boost consumption and non-oil investment

- Construction activity to ramp up amid growing housing demand

: - Accommodative policy measures help to boost domestic demand

: - Exchange rate volatility

35

Economic Outlook : Challenges Ahead

US market : The only bright spot

: - A strong US dollar to continue to weigh on exports- A monetary tightening cycle expected to begin in 2H’15

EU market: Greece/EU out of the woods?: - ECB’s ultra-loose monetary policy and a weak euro to continue to

benefit the economy : - Implementation of austerity measures to reduce government budget

deficit to continue to weigh on growth

Thailand market: Expected to slowly recover: - Recovery in tourism arrivals to continue

: - Recent drought crisis and its negative wealth effect to consumer spending

AEC market : Government measure to boost economic growth

: - Recent stock market rout and its negative wealth effect to consumer spending

PTT Performance: Solid performance amid low oil price environment : - Solid performance from integrated business model of PTT Group

: - Uncertainty on Global Economics affects to global reference price


35

China market: Accommodative monetary policies to avoid hard landing

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, July 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 2015 8-9 $/MMBtu

Factors to watch

Average JKM price 2014 = 14.89 $/MMBtu

Overview Performance 2Q/15 Outlook

Nuclear power plant delayed the start up period.

Additional spot demand from new imported countries such as Jordan, Egypt & Pakistan

36

Averaged HH Price 2014 =4.26 $/MMBtu

USD/MMBtu

EIA projected HH Price 2015 = 2.84 $/MMBtu

EIA projected HH Price 2016 = 3.18 $/MMBtu

EIA Outlook

Future JKM PriceActual JKM Price

Current Price @ 8.20 $/MMbtu

53.64 54.03 55.56 57.08

58.57

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)

2014 Dubai $96.6/bbl

Dubai Forecast Y2015Range $50-60/bbl

93.593.1

94.2

95.095.3

96.496.0

95.4

-0.5

0.5

1.5

2.5

3.5

4.5

91.0

92.0

93.0

94.0

95.0

96.0

97.0

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

MBD MBD

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

Oil Rig Count declined

Prolonged geopolitical tension in Yemen, Libya

China and India return to fill up SPR when oil price drop

“World Oil Supply surplus trend to lower in 2H 2015 mainly from reduced well completions and declines in capex should have an impact on shale output by 1Q16.”

Source: (PTT Group) Estimated (23.07.2015)

Crude Oil Outlook: Oversupply conditions persist

Iran could ramp up production by 500-700 KBD within the next 6-12 months after sanctions lifted

OPEC keep production rate to maintain market share

Crude Oil Price Forecast in Y2015 range bound 50-60 $/bblFactors to watch

World Oil Demand/Supply Balance

Source: BOAML , IEA, Prism

surplus

surplus

surplus

surplus

US

D/b

bl

37


Source: FACTS, DB, KBC, Reuters , IEA, Reuters, Thaioil and PRISM Estimated ( Aug 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

Stockpile demand before Hajj season in Sep’15.

Demand growth from Latin America and Africa.

Forecast

GO

Mogas

FOReturn of U.S. refineries from maintenance season.

New barrels from the new ME refinery (Yasref, Ruwais)

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

“Softer middle distillate product spreads from new refineries startups. However, healthy gasoline cracks in

2H/15 as low retail oil prices stimulate demand ”

Refinery Margin Outlook : Lower GRM from return of refineries turn around

CDU Additional Vs Additional Demand –AP&ME

V

Source: FACTs Semi Annual Reports, Spring 2015, Reuters, Bloomberg, TOP estimate

US

D/b

bl

38


0100200300400500600700800900

Jan

-14

Fe

b-1

4

Ma

r-14

Ap

r-14

Ma

y-1

4

Ju

n-1

4

Ju

l-14

Au

g-1

4

Se

p-1

4

Oct-

14

No

v-1

4

Dec-1

4

Jan

-15

Fe

b-1

5

Ma

r-15

Ap

r-15

Ma

y-1

5

Ju

n-1

5

Ju

l-15

Au

g-1

5

Se

p-1

5

Oct-

15

No

v-1

5

Dec-1

5

Spread HDPE Spread PP

New supplies in regional weight down market sentiment

Olefins Product Spread

Petrochemical Outlook: Ethylene and Propylene demands are still under uncertainties amid ample supplies.

Source: HIS, ICIS and PRISM

Asia Ethylene Supply/Demand Balance

Factors to watch

2015 (F)

Asia Propylene Supply/Demand Balance

39

Energy and feedstock prices downward trend

Manufacturing season anticipates to kick-off in late August

Olefins Product Spread Forecast in Y2015

• HDPE-Naphtha expected to be around 640-828 USD/TON

• PP-Naphtha expected to be around 577-796 USD/TON

US

D/T

on

Ava

ila

bilit

y

Millio

n M

etr

ic T

on

s

2015 (F)2015 (F)

Ava

ila

bilit

y

Millio

n M

etr

ic T

on

s

Concerns on lower-than-expected of global economic growth

Most plants operate at high cracker run rates


Petrochemical Outlook: Bearish Benzene and PX sentiments driven from weak energy values and new capacities.

Manufacturing season anticipates to kick-off in late August

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

Aromatics Product Spread

Factors to watch

0

50

100

150

200

250

300

350

400

450

500

Ja

n-1

4

Ju

l-1

4

Ja

n-1

5

Ju

l-1

5

Spread BZ Spread PX

Source: HIS, ICIS and PRISM 40

Chinese economy expands slower than expect

Aromatics Product Spread Forecast in Y2015

• BZ-Naphtha forecasted to be around 138-254 USD/TON

• PX-Naphtha forecasted to be around 311-398 USD/TON

US

D/T

on

2015 (F)

Ca

pa

cit

y A

va

ila

bil

ity %

Asia Benzene Production Capacity Losses in 2015

Th

ou

sa

nd

Me

tric

To

ns

2015 (F)

Asia Paraxylene Production Capacity Losses in 2015

Ca

pa

cit

y A

va

ila

bil

ity %

Th

ou

sa

nd

Me

tric

To

ns

2015 (F)

Energy and feedstock prices downward trend


Thank youPTT 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.

41

41

mailto:[email protected]

http://www.pttplc.com/

42

Debt Profile : Control Cost & Manage Risk

Debt Portfolio

Managed debt according to financial risk and policy

ConsolidatedPTT OnlyUnit : MMTHB

: Cost of debts ~ 4.63%: % fixed-rate ~ 75%: Avg. debt life ~ 8.43 years

: Cost of debts ~ 4.46%: % fixed-rate ~ 73%: Avg. debt life ~ 7.06 years

181,399 204,560 194,006 208,298

384,548 382,711

125,972 83,985 75,619

259,665

305,127 279,998

307,371 288,545 269,625

467,963

689,675662,709

31 Dec 13 31 Dec 14 30 Jun 15 31 Dec 13 31 Dec 14 30 Jun 15

USD THB

(35%)

(65%)

(29%)

(71%)

(28%)

(72%)

(49%)

(51%)

(44%)

(56%)

(42%)

(58%)

Note : Data as of 30 Jun 15 (THB/USD = 33.9266 THB/JPY = 0.278603) Excluding liabilities from finance leases; Cost of debts includes withholding tax. 42

PTT Group Performance : Q2/2015 (QoQ)

% share

Unit : MMTHB Q1/15 Q2/15 QoQ Q1/15 Q2/15 QoQ

PTT Net operating Income 6,638 9,019 36% 6,638 9,019 36%

E&P - PTTEP 8,616 1,312 -85% 65.29% 5,616 866 -85%

- PTTGC 5,631 9,019 60% 48.89% 2,684 3,973 48%

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

PTTME/PTTMCC/PMMA1,313 589 -55% 40-50% 635 240 -62%

Petrochemical 6,944 9,608 38% 3,319 4,213 27%

- TOP 4,498 6,276 40% 49.10% 2,217 2,963 34%

- IRPC 3,832 4,236 11% 38.51% 1,571 1,528 -3%

Refining 11,968 15,798 32% 4,740 6,342 34%

Inter - PTTER, PTTGE -347 -1,721 396% 100% -347 -1,721 396%

Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 1,073 1,618 51% 50-100% 1,042 1,355 30%

Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 854 819 -4% 20-30% 259 204 -21%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others 1,463 3,569 144% 33-100% 1,317 3,468 163%

Others Business 3,043 4,285 41% 2,271 3,306 46%

Shared of Net Income from Affiliates 30,571 31,003 1% 15,946 14,727 -8%

PTT Conso. Net Income 37,209 40,022 8% 22,584 23,746 5%

Performance 100% Equity Method % PTT

43

Free Cash flow

54,647 13,012

Investing1H/14

-81,6921H/15

-113,352

CAPEX(PP&E, Intangible asset) -80,339 -85,041

Investment (Sub. &Affiliates) -28,334 -779

Dividend/Interest Received 10,311 5,474

Others 16,670 -33,006

Operating1H/14

136,3391H/15

126,364

Net Income 57,895 46,330

Changes in assets & liabilities 13,686 12,517

Income Tax -43,677 -32,429

Non-Cash Adjustment 104,590 99,081

Interest-net 3,845 865

Ending Cash & Cash Equivalents

230,994 172,665

Beginning Cash and Cash Equivalents

196,854 234,212

Cash In/(Out)

34,140 -61,547

Adjustment

-987 -2,031

Financing -19,520 -72,528

Repayment Loans -68,924 -53,802

Interest paid -16,211 -16,924

Dividend paid -40,648 -20,296

Received from share issue 32,557 9,953

Received from loans/Bonds 73,706 8,541

Statements of Consolidated Cash Flows : 1H/2015

44

44

45

Free Cash flow

36,498 13,227

Financing -31,228 -36,208

Repayment Loans -2,288 -20,766

Interest paid -6,722 -6,286

Dividend paid -22,851 -14,265

Received from share issue - -

Received from loans/Bonds 633 5,108

Investing1H/147,938

1H/15-8,607

CAPEX (PP&E, Intangible asset) -14,004 -18,201

Investment (Sub. &Affiliates) -1,652 -2,068

Dividend/Interest Received 17,551 12,422

Others 6,043 -760

Operating1H/1428,559

1H/1521,834

Net Income 25,257 33,144

Changes in assets & liabilities -8,550 -4,207

Income Tax -1,388 -1,968

Non-Cash Adjustment 8,668 -8,684

Interest - net 4,573 3,551

Ending Cash & Cash Equivalents

69,196 35,037

Beginning Cash and Cash Equivalents

63,927 58,018

Cash In/(Out)

5,269 -22,981

Adjustment

-0.9 -0.1

Statements of Cash Flows (PTT Only) : 1H/2015

45

Subsidiaries ConsolidatePTT (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 EquityKeloil-PTT LPG Sdn. Bhd. KPL 40.00%Thai Petroleum Pipeline Co., Ltd.THAPPLINE 40.40%PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00%

Others CostPetroAsia (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 ValueBangkok Aviation Fuel Services Plc. BAFS 7.06%

Others

Subsidiaries ConsolidatePTT 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 22.58%

Joint Ventures EquityTrans 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 ConsolidatePTT 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 EquityHMC Polymers Co., Ltd. HMC 41.44%PTT Asahi Chemical Co., Ltd. PTTAC 48.50%PTT MCC Biochem Co., Ltd. PTTMCC 50.00%

Refining Subsidiaries ConsolidateThai Oil Plc.* TOP 49.10%IRPC Plc.* IRPC 38.51%

Refining Associates EquityStar Petroleum Refining Co., Ltd. SPRC 36.00%

Others Fair ValueDhipaya Insurance Plc. TIP 13.33%

Subsidiaries ConsolidateEnergy 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 ConsolidatePTT 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 GroupE&P and Gas Business Group Oil Business Group

Data as of 30 June 2015

International Investment

Subsidiaries ConsolidatePTT Energy Resources Co., Ltd. PTTER 100.00%PTT Green Energy Pte. Ltd PTTGE 100.00%

46

46

47

Natural Gas Price Structure : Jan-Jun 2015

CustomersSales Price Structure

Gas Pool Price Supply Margins Pipeline Tariffs+ +

Average Purchased Gas Price

1.75%

1.75%

9.33%

21.9 Bt/MMBtu

Charged at the same price structure of power producers

Reference to Saudi Aramco’s contract price

Charged at prices comparable to fuel oil

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

Capped at 13.00 Baht/Kg from Jan 2015

Profit-sharing mechanism based on market prices of petrochemicals

Reference to Naphtha market price

At GSPs cost (adjusted every 3 months)

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

47

Power Producers 60%

: EGAT 25%

: IPP 20%

: SPP 15%

GSP 20%

Petrochemicals Feedstocks

Industry 14%

NGV 6%

Ethane, Propane, LPG

NGL

Local Cooking Gas

Export Cooking Gas

*

* EGAT IPP and SPP Supply Margins not more than 2.1525 and 11.4759 respectively

*

*

Natural Gas : A steadily growth of natural gas upon Government fuel diversification policy for power generation

48Source : PTT

Gas demand forecast (CAGR during 2015-2030): Total ~ 0.1%: Power ~ 0.2%: GSP ~ -2.2%: Industry ~ 1.8%: NGV ~ 0.4%

Thailand’s Projected Energy Demand

49

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–FPSOErawan

PailinBongkot

South Bongkot

Chevron–Additional

Platong

Tantawan

Benchamas

Natural gas fields

Power plantsGas separation plant

1,2,3,5,6 in Rayong

Gas separation unit 4

in Nakhon Si Thammarat

Existing pipeline

Future pipeline

Andaman Sea

50

50

-8,000

-6,000

-4,000

-2,000

-

2,000

4,000

6,000

8,000

10,000

Unit: MMUSDNet Income Comparison: Q1’14 - Q2’15

Source: Bloomberg/Petronas Website

2014 '15 2014 '15 2014 '15 2014 '15 2014 '15 2014 '15 2014 '15

HoH: 20% HoH: 49% HoH: 14% HoH: 16%HoH: 69% HoH: 147% HoH: 44%

• Integrated business model more resilient

• Companies with more upstream hurt more

• All companies except Exxon decided to take impairment on their assets

• Exxon said they view low prices and margins as temporary

• Some global peers records profits from sales of assets

12 Months Trailing PTT Exxon Shell Chevron Total BP Petronas

Impairment (MMUSD) 784 0 6,983 2,960 6,500 3,600 6,715

% Impairment to NI % 0% 4% 20% % 1 1% 4 %


PTT Performance vs. Global Peers

51

Gas Business Roadmap

Key ProgressDemand & Supply

LNG Terminal Phase 2

Tie – in procedure & Site investigation / Factory acceptance test / and construction of tank roof structure

Construction completed 52.15%

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

52

15

20

25

30

35

Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15

5

10

15


0

40

80

120


53

Energy Price Reform: Blessing in Disguise

Dubai Petroleum Products

LPG NGV

Adjusted 3 timesTotal change +2.50 for Private Car+1.50 for Public Car

Adjusted 4 times to “Single price”Total change +5.83 for Cooking+2.58 for Auto-6.17 for Industry

107.11

61.79

USD/BBL

Jun-15

New Gov.

Public Car8.50 THB/Kg

Private Car10.50 THB/Kg

10.00

13.00

Auto21.38

Cooking18.13

Industry30.13

THB/Kg

20

30

40

50


Gasoline46.85

Diesel29.99

35.66

25.59

Total change -11.19 for Gasoline-4.40 for Diesel

THB/Litre New Gov.

12.50

11.50

9.50

New Gov. THB/Kg

Jun-15

Jun-15Jun-15

23.9624.16

53

Energy Price Reform: LPG Prices

CP-20 $/ton or 423 $/ton

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

GSP3.6 Mil. Ton

(48%)

Imported 2.0 Mil.

Ton(27%)

Refinery1.9 Mil.

Ton(25%)

488 $/TON

or1 11 ฿/kg

CP+85 $/ton or 528 $/ton

498 $/ton

*CP Jan’15= 443 $/ton

Tax2.39 ฿/kg

Margin3.26 ฿/kg

Oil Fund0.82 ฿/kg

VAT1.58 ฿/kg

Oil FundAS

CLEARING HOUSE

Margin3.26 ฿/kg

VAT1.19 ฿/kg

Tax2.39 ฿/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

54

http://www.google.co.th/url?url=http://gas-lpg-rodyontt.blogspot.com/&rct=j&frm=1&q=&esrc=s&sa=U&ei=58tcVPDKG8S8uATasYDQCg&ved=0CBcQ9QEwATgU&usg=AFQjCNGqWS3Kbm5yvRnOK4iTmVWnNiXGlg

http://www.google.co.th/url?url=http://gas-lpg-rodyontt.blogspot.com/&rct=j&frm=1&q=&esrc=s&sa=U&ei=58tcVPDKG8S8uATasYDQCg&ved=0CBcQ9QEwATgU&usg=AFQjCNGqWS3Kbm5yvRnOK4iTmVWnNiXGlg

investor update september 2015 - listed...

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