1Q/2016 ANALYST MEETING PRESENTATION Agenda STRATEGIC EXECUTION - - PowerPoint PPT Presentation

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1Q/2016 ANALYST MEETING PRESENTATION Agenda STRATEGIC EXECUTION - - PowerPoint PPT Presentation

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1Q/2016 ANALYST MEETING PRESENTATION Agenda STRATEGIC EXECUTION 1Q/2016 FINANCIAL RESULTS MARKET OUTLOOK APPENDIX 2 Agenda STRATEGIC EXECUTION 1Q/2016 FINANCIAL RESULTS MARKET OUTLOOK APPENDIX 3 1Q/2016 Highlight Market Environment (+)

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SLIDE 1

1Q/2016 ANALYST MEETING PRESENTATION

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SLIDE 2

Agenda

STRATEGIC EXECUTION 1Q/2016 FINANCIAL RESULTS MARKET OUTLOOK APPENDIX

2

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SLIDE 3

Agenda

STRATEGIC EXECUTION 1Q/2016 FINANCIAL RESULTS MARKET OUTLOOK APPENDIX

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SLIDE 4

April

20 25 30 35 40 45

1Q/2016 Highlight

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January February March

Dubai @ $31.21 /bbl Dubai @ $43.96 /bbl

(+) Rebound of oil price from $31.21/bbl at end 2015 to $36.01/bbl at end 1Q16 (+) Reduce in US crude production of around 21 KBD to 9,140 KBD (+) US rig count decreased 234 rigs YoY to 464 rigs (+) Aromatic producer major S/D in 1H16 (+) HDPE price move up from bottom at $1,075/T in Jan to $1,112/T in March (-) Drop in Gas Oil spread from more supply (-) MEG spread dropped from demand slowdown

Market Environment

PTTGC’s Performance Despite external factors

  • Lower refinery crack spread
  • Lower HDPE price

Internally we were able to …

  • Increase Aromatics in sales volume
  • Mitigate Olefins 3 shutdown by building PE inventory

PTTGC maintained Adj. EBITDA margin at 12%

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SLIDE 5

1Q/2016 Highlight

ARO II Expansion

  • n stream

Phenol II commissioning

  • Commission : Dec 2015
  • COD : May 2016
  • Capacity :
  • PX 115 KTA,
  • BZ 35 KTA,
  • OX 20 KTA
  • CAPEX : 128.8 MUSD
  • EBITDA Uplift /Y*: 24 MUSD

VCR TH ready for commissioning Treasury Stock Program Closed

  • Total repurchased 48,553,000

shares or 1.077% of the total paid-up capital at average price of 50.14 baht/share. Repurchase period ended March 7.

VCR FR ready for commissioning

  • Commission :2Q/2016
  • COD : 3Q/2016
  • Capacity :
  • HDI Deriv. 12 KTA
  • CAPEX : 43 MUSD
  • Product : HDI derivative
  • EBITDA Uplift /Y*: 9 MUSD
  • Commission : 2Q/ 2016
  • COD : 3Q/2016
  • Capacity :
  • HDI Mono. 70 KTA
  • CAPEX : 18 MUSD
  • Product : HDI monomer
  • EBITDA Uplift /Y*: 24 MUSD
  • Commission :Feb 2016
  • COD : May 2016
  • Capacity :
  • PH 250 KTA
  • AC 155 KTA
  • CAPEX : 345 MUSD
  • EBITDA Uplift /Y*: 63 MUSD

*EBITDA Uplift per year at mid cycle price

5

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SLIDE 6

Strategic Direction

Sustain Core Accelerate Growth levers Balance Business & Social Value

To be a Leading chemical company for Better living

  • Performance

excellence

  • Maximize value

creation

  • Map Ta Phut retrofit
  • International hub
  • Performance

chemicals

  • Green business
  • Sustainable

development

  • Effective CSR programs
  • Stakeholder

management

6

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SLIDE 7

Implementation Detail Study

Sustain Core : Value Creation

Plant Operational Excellence Top Down Study

  • Due diligence

process to estimate project potential

  • Develop initiatives and

execution plans

  • Execute per plan to

capture value

6 Weeks 12 Weeks 18 Months

Commercial & Marketing Excellence Procurement Excellence Capex Excellence Asset Performance Excellence

7

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SLIDE 8
  • Build new Cracker 500 KTA

ethylene for flexible feed cracker to utilize internal naphtha

  • Maximize utilization of the existing

utilities and support facilities to reduce investment cost

Project Scope

  • Issued pre qualification enquiry

package to prospect bidders.

  • Awarded project manager

contractor

  • Issued conceptual design to

licensors

  • Completed EPCa Scope package
  • Submitted BOI application

Sustain Core :MTP Retrofit

Project Update Timeline :

2018 2020

1Q/18 Construction COD 2020

2016

ITB

8

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SLIDE 9

Captive and Committed 80%

Merchant Volume 20%

9

200 KTA

Merchant Market

≈ 80% Reserved Volume

PO Market Survey Polyols Market Survey

  • Completed PO & Polyols market survey
  • Building sale & marketing strategy
  • Ongoing FEED work and preparing ITB
  • Preparing EIA report
  • Negotiating feedstock arrangement
  • Engaged FA and expect FID in 4Q/16

Project Update

Market survey result concluded that SEA and India are the target market.

  • Target market growth rate average

at 5 - 7 % during 2014 - 2023

  • The highest growth rate is in

Automotive segment 6.8 % Marketing strategy is to focus on high value application segment

Timeline :

Accelerate Growth Levers : PO & Polyols Project

Construction

Polyols 130 KTA System House 40 KTA

  • Licensor

E&E Automotive

After surveyed 106 customers, we have arrived to Potential Customers

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SLIDE 10

Accelerate Growth Levers : US Petrochemical Complex

  • Investment cost justify investment return
  • Enough ethane capacity with competitive

pricing structure

  • Partner can distribute products in N. America

Key Criteria for FID Project Update

  • FEED : FEED contractors on schedule to deliver cost

estimates within 3Q/16

  • Feedstock : In discussion with specific names of

ethane supplier to finalize contract terms

  • Marketing & Logistic :
  • Preparing marketing and sale plan as well as key

terms in offtake agreement

  • Received proposals from barge, railcar leasing,

and packing service

  • Discuss with potential offtaker.
  • Permit: Signed off on the First Energy land option

agreement

  • Partner : Approached FA in the process to short list of

potential partner

Project Overview

Marcellus Shale Gas Reserve

United States

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SLIDE 11
  • Sign MOU with Sahapat

and DITP to collaborate in product development, area development and market development

  • Introduce InnoPlus’

customer to the area and conduct survey for investment interest

  • Three customers have

confirmed to expand business in Mae Sot area

Accelerate Growth Levers : Growing in AEC Market

  • Indo Thai Trading (ITT) – Trading

company, a JV between PTTGC and Pertamina to penetrate into Indonesia polymer market. Sales of ITT has been increasing with volume

  • f approx. 9,500 / month.

1500 1,500 1200 1100 600 200 60 24 11

Estimated Demand for PE Product (KTA) in 2015

Potential demand in AEC with high growth rate

11

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SLIDE 12

Agenda

STRATEGIC EXECUTION 1Q/2016 FINANCIAL RESULTS MARKET OUTLOOK APPENDIX

12

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SLIDE 13

Business Environment & Operations Recap

Average and Ending Dubai Crude Price: USD/BBL Average and Closing FX : THB/USD

32.48 34.25 32.65 33.26 35.25 35.84 35.67 32.70 33.93 36.53 36.25 35.41

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

Average FX Closing FX

  • Surplus crude and weak demand pressured Dubai crude to decline

from average at 40.7 USD/BBL in 4Q/15 to average at 30.4 USD/BBL in 1Q/16 (2015 year end closing at 31.8 USD/BBL). As a result, PTTGC reported Stock Loss & NRV totaling 274 M.THB for the year.

  • FX Gain amounting to 632 M.THB, resulting from appreciation in THB

against USD from ending at 36.25 THB/USD in 4Q/15 to ending at 35.41 in 1Q/16.

  • Modest Refinery GRM, better adjusted EBITDA margin in Aromatics

and healthy Olefins margin 96.6 50.9 51.9 61.3 49.7 40.7 30.4 53.4 60.2 43.5 31.8 34.9

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

Average Price Closing Price

1Q/15 4Q/15 1Q/16 YoY +/(-) QoQ +/(-) CDU Utilization Rate 102% 99% 93%

  • 8%
  • 5%

ULG95 - Dubai 15.4 18.7 18.8 23% 1% Jet - Dubai 17.1 14.1 11.7

  • 32%
  • 17%

Diesel - Dubai 16.3 13.8 9.6

  • 41%
  • 30%

Fuel Oil - Dubai

  • 1.9
  • 6.6
  • 5.2
  • 178%

21% GRM on CDU (USD/BBL) 8.0 8.3 6.1

  • 23%
  • 26%

BTX Utilization Rate 88% 66% 90% 2% 24% PX- Condensate 333 410 415 25% 1% BZ- Condensate 217 230 272 25% 18% Market P2F (USD/Ton) 219 251 201

  • 8%
  • 20%

Olefins Utilization Rate 96% 97% 81%

  • 14%
  • 16%

Polyethylene Utilization Rate 107% 103% 89%

  • 19%
  • 14%

MEG Utilization Rate 108% 117% 96%

  • 13%
  • 21%

HDPE Price 1,188 1,153 1,103

  • 7%
  • 4%

MEG - 0.65 Ethylene 236 165 74

  • 69%
  • 55%

% Adj. EBITDA Margin 19 22 20 1

  • 2

13

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SLIDE 14

147.5 145.3 147.6 144.2 146.4 143.1 135.5 56.2 60.0 60.5 66.9 49.7 62.9 63.9

203.7 205.3 208.1 211.1 196.1 206.0 199.4

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Crude Condenstate Residue & Others

Refinery Performance

Modest Refinery GRM

14

Petroleum Products - Dubai Spread (USD/BBL) Total Intake (KBD) Sales Volume (KBD) Gross Refinery Margin (USD/BBL)

14.3 18.3 15.3 19.8 19.3 18.7 18.8

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 ULG 95 - DB JET - DB Diesel - DB FO - DB

15.9 13.9 17.1 13.5 10.9 14.1 11.7

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

16.1 13.7 16.3 13.7 10.8 13.8 9.6

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

+23% YoY +1% QoQ +28% YoY

(8.3) (5.0) (1.9) (3.6) (8.1) (6.5) (5.2)

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

  • 32% YoY
  • 17% QoQ
  • 13% YoY
  • 41% YoY
  • 30% QoQ
  • 15% YoY
  • 178% YoY

+21% QoQ +40% YoY

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Market GRM 4.41 5.45 5.98 5.40 4.16 6.23 4.77 GRM on CDU 5.61 7.13 7.97 7.27 5.11 8.25 6.10 GRM on CRS 2.77 2.95 2.58 2.69 3.16 3.39 3.80

CDU U-Rate

  • 4% YoY
  • 3% QoQ

102% 100% 101% 99% 93%

+1% YoY

102% 100%

4.41 5.45 5.98 5.40 4.16 6.23 4.77 (4.36) (1.25) (1.50) 2.22 (3.22) (2.47) (0.97) 0.94 0.93 (0.31) (0.04) (0.03) 3.86 0.07

0.98 5.13 4.17 7.59 0.91 7.63 3.86

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Market GRM Stock Gain/(Loss) Net NRV Hedging Gain/(Loss) Accounting GRM 8% 9% 9% 10% 9% 9% 15% 14% 13% 12% 14% 15% 13% 15% 50% 49% 46% 51% 49% 51% 48% 13% 11% 17% 10% 9% 10% 13% 15% 16% 16% 15% 17% 17% 8% 185 186 184 194 180 188 177 2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Others Fuel Oil Diesel Jet Naphtha+Ref.

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SLIDE 15

Aromatics Performance

Better Adjusted EBITDA Margin

Prices PX FECP - Cond BZ Spot - Cond

Aromatics Products Prices and Spread (USD/Ton) Products to Feed Margin (USD/Ton BTX) BTX U-Rate and Sales Volume (KTons)

Naphtha - Cond

836 447 453 533 427 375 303 1,236 829 785 924 823 786 718 1,211 685 670 804 661 606 574

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

Condensate Erawan PX FECP BZ Spot Korea 375 238 217 271 235 230 272

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

400 383 333 391 397 410 415

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

25 44 41 31 34 69 41

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

  • 36% YoY
  • 4% YoY

+74% YoY +25% YoY +1% QoQ +25% YoY +18% QoQ 0% YoY

  • 41% QoQ

11% 11% 2% 13% 10% 17% 7% 30% 31% 28% 30% 30% 35% 30% 36% 36% 45% 36% 36% 29% 39% 23% 22% 25% 21% 25% 19% 24%

3,156 2,921 707 866 552 796 841

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 BZ Group PX Group Naphtha Group Other By- Products

BTX U-Rate

81% 74% 88% 85% 57% 66% 90%

+19% YoY

+6% QoQ

  • 7% YoY

174 217 219 216 183 251 201 (85.91) (8.57)

  • (27.63)

54.93 (48.94) (27.79) 16.41

  • 2.54

88 209 191 271 134 226 217

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Market P2F Stock Gain/(Loss) Net NRV Hedging Gain/(Loss) Accounting P2F

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SLIDE 16

Olefins and Derivatives Performance

Margin remained strong at 20% even PTTPE shutdown

Prices

MEG ACP – 0.65Ethylene

Olefins Derivatives Prices and Spread (USD/Ton) U-Rate (%) Sales Volume (KTons)

HDPE - Naphtha

1,544 1,237 1,188 1,375 1,234 1,153 1,103 1,543 1,234 1,181 1,375 1,224 1,158 1,114 1,571 1,249 1,192 1,401 1,244 1,158 1,117 1,113 948 903 1,027 1,025 837 732 861 491 494 563 461 445 344 2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 HDPE (FILM) SEA LLDPE CFR SEA LDPE CFR SE Asia MEG ACP Naphtha MOPJ

HDPE Price

  • 7% YoY
  • 4% QoQ

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 HDPE (FILM) SEA 1,544 1,237 1,188 1,375 1,234 1,153 1,103 LLDPE CFR SEA 1,543 1,234 1,181 1,375 1,224 1,158 1,114 LDPE CFR SE Asia 1,571 1,249 1,192 1,401 1,244 1,158 1,117 MEG ACP 1,113 948 903 1,027 1,025 837 732 Naphtha MOPJ 861 491 494 563 461 445 344

682 747 694 812 774 708 759

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

206 230 236 126 394 165 74

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

  • 69% YoY
  • 55% QoQ

+9% YoY +7% QoQ +9% YoY +12% YoY

GAS : NAPHTHA Intake % Adjusted EBITDA Margin

57% 57% 56% 54% 57% 60% 51% 35% 35% 37% 38% 35% 31% 36% 8% 8% 7% 8% 8% 9% 12%

3,727 3,899 991 932 964 1,012 882

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Ethane Other Gas Naphtha

26% 24% 19% 28% 24% 22% 20%

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Olefins 708 760 196 173 189 203 156

HDPE 873 868 219 197 219 233 193 LLDPE 407 365 108 69 99 89 78 LDPE 323 333 80 80 83 90 73

Total PE 1,603 1,566 407 346 402 411 344 MEG 382 420 102 108 80 130 106 2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Olefins 91% 94% 96% 89% 93% 97% 81%

HDPE 107% 108% 109% 97% 109% 115% 95% LLDPE 100% 91% 110% 61% 113% 79% 76% LDPE 105% 111% 99% 119% 124% 104% 90%

Total PE 105% 104% 107% 92% 113% 103% 89% MEG 95% 96% 108% 106% 51% 117% 96%

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SLIDE 17

58% 55% 59% 48% 57% 53% 56% 42% 45% 41% 52% 43% 47% 44%

258 284 74 66 72 71 72

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Phenol BPA

268 269 454 355 154 114 166

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

Phenol and BPA Performance

Higher Margin from Rising Product Spread

Prices BPA-Phenol Phenol-BZ

Phenol/ BPA Prices and Spread (USD/Ton) U-Rate and Sales Volume (KTons) Adjusted EBITDA Margin

1,211 685 670 804 661 606 574 1,427 886 909 979 882 775 753 1,695 1,156 1,364 1,334 1,036 889 920 2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Benzene Phenol BPA

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Phenol (CMP) 1,427 886 909 979 882 775 753 BPA (CMP) 1,695 1,156 1,364 1,334 1,036 889 920 Benzene 1,211 685 670 804 661 606 574

216 201 240 175 221 170 179

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

433 274 Phenol Mkt

P2F

347 236 285 227 200 BPA Mkt

P2F 186 242

402 318 137 112 162

  • 25% YoY

+5% QoQ

  • 63% YoY

+46% QoQ

  • 7% YoY

0% YoY

Sales Volume (KTons)

  • 3% YoY

+1% QoQ +10% YoY

11% 9% 19% 7% 6% 1% 3%

2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16

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U-Rate 2014 2015 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 Phenol 118% 130% 131% 121% 132% 134% 133% BPA 99% 103% 114% 85% 107% 104% 108%

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SLIDE 18

Overview of Business Unit’s Performance

% Adj. EBITDA Margin 1Q/15 4Q/15 1Q/16 Business Unit : Refinery 6 15 8 Aromatics 13 11 14 Olefins and Derivative 19 22 20 Green 6 11 8 HVS 12 3 (3) Average 12 16 12

1Q/16 Revenue and Adjusted EBITDA Structure

80,764 M.Baht 9,789 M.Baht

(Unit: Million Baht) 1Q/15 4Q/15 1Q/16 YoY % + /(-) QoQ % + /(-) Sales Revenue 99,251 96,088 80,764

  • 19%
  • 16%

EBITDA 10,473 10,387 9,515

  • 9%
  • 8%

EBITDA Margin (%) 11% 11% 12% 1% 1% Net Profit 5,631 4,690 4,707

  • 16%

0% EPS (Baht/Share) 1.25 1.04 1.06

  • 16%

1% Adjusted EBITDA* 11,606 14,970 9,789

  • 16%
  • 35%

Adjusted EBITDA Margin (%) 12% 16% 12% 0%

  • 3%

Note: * Adjusted EBITDA refers EBITDA excluding impact of inventory value (Inventory and NRV)

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SLIDE 19

1Q/2016 Income Statements Consolidated

1Q/2015 (restate) 4Q/2015 (restate) 1Q/2016 YoY QoQ MB % MB % MB % MB % MB % Sales Revenue 99,251 100 96,088 100 80,764 100 (18,487)

  • 19%

(15,324)

  • 16%

Feedstock Cost (75,721) (76) (71,547) (74) (59,635) (74) (16,086)

  • 21%

(11,912)

  • 17%

Product to Feed Margin 23,530 24 24,541 26 21,129 26 (2,401)

  • 10%

(3,412)

  • 14%

1 Variable Cost (6,809) (7) (6,586) (7) (5,898) (7) (911)

  • 13%

(688)

  • 10%

2 Fixed Cost (3,685) (4) (4,827) (5) (4,178) (5) 493 13% (649)

  • 13%

3 Stock Gain/(Loss) & NRV (1,133) (1) (2,053) (2) (274) (0) 859 76% 1,779 87% 4 Gain/(Loss) Commodity Hedging (188) (0) 2,853 3 43 231 123% (2,810)

  • 98%

5 Other Income 1,097 1 2,024 2 978 1 (119)

  • 11%

(1,046)

  • 52%

6 SG&A (2,339) (2) (3,035) (3) (2,285) (3) (54)

  • 2%

(750)

  • 25%

7 Extraordinary Item (2,531) (3) N/A (2,531) N/A EBITDA 10,473 11 10,386 11 9,515 12 (958)

  • 9%

(871)

  • 8%

Depreciation & Amortization (3,979) (4) (4,208) (4) (4,141) (5) 162 4% (67)

  • 2%

EBIT 6,494 7 6,178 6 5,374 7 (1,120)

  • 17%

(804)

  • 13%

Finance Cost (1,076) (1) (937) (1) (822) (1) (254)

  • 24%

(115)

  • 12%

8 FX Gain/(Loss) 526 1 510 1 632 1 106 20% 122 24% 9 Shares of profit/(loss) from investments 301 (209) (0) 178 (123)

  • 41%

387 185% 10 Income Tax Expense (499) (1) (769) (1) (623) (1) 124 25% (146)

  • 19%

Net Profit 5,746 6 4,773 5 4,739 6 (1,007)

  • 18%

(34)

  • 1%

Profit/(loss) attributable to: Owners of the Company 5,631 6 4,690 5 4,707 6 (924)

  • 16%

17 0% Non-controlling interests 115 83 32 (83)

  • 72%

(51)

  • 61%

Adjusted EBITDA * 11,606 12 14,970 16 9,789 12 (1,817)

  • 16%

(5,181)

  • 35%

Note: * Adjusted EBITDA refers to EBITDA excluding impact of inventory value (excludes Inventory gain/(loss) and NRV) and Extraordinary Item

19

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SLIDE 20

Strong Financial Position

20 Repayment Profile

Interest Rate Currencies 52% Fixed 60% THB 48% Float 40% USD & Others

Loan Type

  • Cost of long term debts ~ 4.17% (Include W/H Tax)
  • Average loan life after refinancing - 4.51 Years

Treasury policy

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

THB Bn

* After Refinance

Key Financial Ratios Statements of Financial Position

As of Dec 31, 2015 As of Mar 31, 2016

THB 378 Bn THB 386 Bn

Cash +ST Investment CA Non CA PPE Liab. IBD Share Holder’s Equity

THB 106 Bn ST Bank Loan, 0% LT Bank Loan, 53% Debenture, 47%

1.59 1.28 1.72 1.30 1.12 0.23 0.21 0.26 0.25 0.21

31 Mar 15 30 Jun 15 30 Sep 15 31 Dec 1531 Mar 16

Net IBD/EBITDA NET IBD/Equity 6.40% 7.57% 4.80% 8.99% 8.38% 4.92% 6.10% 4.27% 7.36% 6.92%

31 Mar 15 30 Jun 15 30 Sep 15 31 Dec 15 31 Mar 16

ROE ROA

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

THB Bn

* After Refinance

9.8 16.0 11.2 9.0 13.5 12.8 1.2 1.3 1.4 1.4

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Total USD Bond THB Bond EUR Loan USD Loan THB Loan 35.4

20

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SLIDE 21

2016 Outlook

KEY ASSUMPTIONS

  • Projected average 2016

dubai price $39.7 /bbl. AROMATICS REFINERY

  • Lower utilization rate mainly

due to planned shutdown in 2Q/16. GRM is expected to slightly decrease to approximately $ 4.7/bbl

  • Demand & Supply is expected to be more balanced from

less US production and rig count, while partially offset by entering of Iran volume and maintain supply level by OPEC. OLEFINS & DERIVATIVES

  • Performance is anticipated

to improve from increasing in product spread in 1H/16 from S/D of major producers in Asia, almost 1 MTA capacity loss , which ease market in the 1H.

  • Utilization rate is expected

to increase from 74% in 2015 to 88% with expanded capacity of 160 KTA of aromatics product.

  • Expected more gas flow

after completed T/A of PTTPE, able to reach 280t/h after T/A.

  • HDPE – naphtha spread

maintains at more than $750/T and HDPE price is projected in uptrend as oil price and anticipated to be average around $1,160/T in this year.

21

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SLIDE 22

Agenda

STRATEGIC EXECUTION 1Q/2016 FINANCIAL RESULTS MARKET OUTLOOK APPENDIX

22

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SLIDE 23

STEADY DEMAND GROWTH DRIVE MARKET MORE BALANCE IN 2nd HALF 2016

MARKET HIGHLIGHT

  • OPEC meeting on June 2nd, 2016 unlikely to

cut or freeze production due to Saudi & Iran rivalry.

  • US shale oil production may resume from

drilled but uncompleted (DUC) wells and additional rig count after crude price rise. DUBAI CRUDE PRICE TREND 2016 GLOBAL OIL SUPPLY vs DEMAND

Unit : MBD Source : JBC April’16

51.9 61.3 49.7 40.7 30.4 42.2 39.7

10 20 30 40 50 60 70

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16(F) 2016 (F)

Unit : $/BBL

38.9 39.4 39.9 40.1 39.6 57.0 56.6 56.4 56.7 56.7 93.9 94.9 96.6 96.4 95.5 95.9 96.0 96.4 96.8 96.3

20 40 60 80 100 120

1Q16 2Q16 3Q16 4Q16 2016

2016 Growth (MBD) Demand +1.2 Supply +0.4

Non-OPEC Supply OPEC Supply Global Demand

  • Raise of supply growth

from previous expected due to faster Iran ramping up Source: PTTGC’s estimate

Unit : MBD

Slowdown in US production amid raising of Iran after sanction lifting

Source : IEA 9.18 8.80

3.00 3.56 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 US (LHS)

Iran after sanctions lifted Jan’16 May’16

Iran (RHS)

  • Saudi Arabia and Russia still maintain production at high

level (Russia 11.25 MBD, Saudi 10.17 MBD @ Mar’16)

23

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SLIDE 24

MARKET HIGHLIGHT PRICE TREND & FORECAST

STABLE GROWTH IN ASIA AMID RAISE OF CHINA EXPORT THAILAND DEMAND IS STILL GROWING

  • High refinery runs in light distillate yield

put downward on gasoline spread

  • China’s refined product export (Gasoline Q1

62% export increase YoY)

  • Peak of Asia Pacific refinery outage during

maintenance in Q2 (nearly 1.5 MBD) and some refineries turndown during water shortage in drought season 2016 ASIA SUPPLY-DEMAND GROWTH

  • 3.5
  • 8.1
  • 6.5
  • 5.2
  • 8.3
  • 7.0

19.8 19.3 18.7 18.8 16.1 16.9 13.7 10.8 13.8 9.6 9.6 10.4

  • 15.0
  • 10.0
  • 5.0

0.0 5.0 10.0 15.0 20.0 25.0

2Q15 3Q15 4Q15 1Q16 2Q16 (F) 2016 (F)

$/BBL

Diesel – Dubai ULG95 – Dubai Fuel Oil – Dubai

Unit : KBD

500 1,000 1,500 2,000 2,500 3,000

Gasoline Diesel Jet Gasoline Diesel Jet

Unit : million liter/month

+12% +6% +6%

REFINERY : CHINA EXPORT PRESSURES ASIA MARKET &

RAISING MIDDLE EAST REFINERY RUN

Source : JBC May 2016

THAILAND CONSUMPTION (Q1 Monthly Average)

Q1/15 Q1/16 Q1/15 Q1/16 Q1/15 Q1/16

258 178 4 275 161 50 50 100 150 200 250 300 350 Gasoline Middle Distillate Fuel Oil Supply Growth Demand Growth

  • Surge of production

and export volume from China teapot refineries cause some surplus in middle distillate.

  • Drought & heatwave

in Asia will boost diesel demand

Source: PTTGC’s estimate

24

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SLIDE 25

339 376 275 142 305 271 257 833 940 736 587 649 677 661 1,149 1,344 1,134 995 929 1,073 996 500 1000 1500 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 (F) 2016 (F) $/MT Propylene-Naphtha Propylene Price PP Price

OLEFINS AND DERIVATIVES : STRONG DEMAND WHILE TIGHT ETHYLENE SUPPLY MEG : MARGINS IMPROVE ON SEASONAL DEMAND FROM CHINA

PROPYLENE PRICE IS STILL PRESSURED FROM ON-PURPOSE OLEFINS AND DERIVATIVEAS HIGHLIGHTS TIGHT ETHYLENE SUPPLY WILL SUPPORT THEIR DERIVATIVES PRICES PROPYLENE MARKET HIGHLIGHTS Polyethylene

  • In Asia, PE plants outage stay high in Q2, mainly in NEA

region.

  • NEA PE import is expected to grow nearly 7.2% YoY in

Q2.

  • HDPE spread over naphtha are expected at 750 $/MT.

MEG

  • Seasoning demand of PET bottle resin supports through

Q2’16.

  • Shell Bukom complex, including MEG 720 KTA is likely to

restart earlier than expected in Jul-Aug.

  • New PDH plant startups struggle in S.Korea and China

and peak cracker turnaround ease market surplus in H1

  • Strong ethylene price will squeeze margins on-purpose

units (OCU) and less impact on the propylene balance.

  • In Q2’16, Asia PP prices are expected to stay high driven

by healthy demand for food packaging especially during Muslim fasting month of Ramadan in Jun 16.

1188 1375 1234 1153 1103 1175 1160 780 943 765 606 633 653 657 500 1000 1500 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 (F) 2016 (F) $/MT HDPE Price MEG Price

Source: PTTGC’s estimate Source: PTTGC’s estimate

25

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SLIDE 26

AROMATICS: NEW SUPPLY DELAY AND STABLE DEMAND SUPPORTED H1 MARGIN

PHENOL/BPA : SHORT TERM SUPPLY TIGHTNESS

AROMATICS HIGHLIGHTS

PHENOL & BPA : MARGIN BOTTOM OUT AROMATICS: MARGIN GRADUALLY RECOVER

PHENOL/BPA HIGHLIGHTS

PX

  • No new supply in H1 amid new 2.2 million mt/yr PX

plant of Reliance sets to start in Sep.

  • No restart dates were set for Dragon Aromatics’1.6 m

ton/year and JAC’s 800 KTA after fire hits tank yard.

  • Seasonal demand of PET Resin, new 1.2 million ton/yr
  • f PTA in China in Q2.

BZ

  • Resume China import demand from startup of new

derivatives, SM and Phenol plants.

  • Strong gasoline demand may limit feedstock to

aromatics and lower on-purpose unit (STDP) run rate.

Phenol

  • Heavy turnaround and delay of new supply in 2Q caused

higher margin

  • KPB is going to shut its small production line (130KTA)

after starting up its new plant (300KTA)

BPA

  • Heavy

turnaround and regional plants capped utilization rate in 2Q caused higher margin

  • Covestro’s new BPA lines (100KTA, China). Together with

PC, already started up but not yet smooth

Source: PTTGC’s estimate,

333 372 360 348 406 410 385 176 240 200 161 230 260 225 100 200 300 400 500 1Q15 1Q152 3Q15 4Q15 1Q16 2Q16 (F) 2016 (F) $/MT PX-Naphtha BZ-Naphtha

347 236 285 227 203 292 262 397 318 137 112 163 263 221

100 200 300 400 500 1Q15 1Q152 3Q15 4Q15 1Q16 2Q16 (F) 2016 (F) $/MT Phenol P2F BPA P2F

Source: PTTGC’s estimate,

26

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SLIDE 27

Agenda

STRATEGIC EXECUTION 1Q/2016 FINANCIAL RESULTS MARKET OUTLOOK APPENDIX

27

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SLIDE 28

Strategic Investment

Existing Non Captive Upstream and Downstream

HDI Deriv. 12 KTA Phenol II 405 KTA Aromatics 170 KTA HDI Monomer 70 KTA mLLDPE 400 KTA PO/Polyol 250 KTA MTP Retrofit 761 KTA 8,000 8,500 9,000 9,500 10,000 10,500 11,000 2015A 2016F 2017F 2018F 2019F 2020F

ARO2 Phenol2 HDI Thailand HDI France MLLDPE PO/Polyol MTP Retrofit CAPEX 128.8 MUSD 345 MUSD 43 MUSD 18 MUSD 288.2 MUSD TBC TBC Additional PetChem* (per year) PX 115 KTA BZ 35 KTA OX 20 KTA PH 250 KTA AC 155 KTA HDI Derivative 12 KTA HDI Monomer 70 KTA MLLDPE 400 KTA Hexene-1 34 KTA PO 200 KTA Polyol 130 KTA Ethylene 500 KTA Propylene 261 KTA Period Q2’16 Q2’16 Q3’16 Q3’16 2018 2019 2020 EBITDA

Uplift/Year**

24 MUSD 63 MUSD 9 MUSD 24 MUSD 59 MUSD

  • 100% stake of additional capacity

** Estimate EBITDA uplift with 100% stake at mid cycle price

28

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SLIDE 29

For further information & enquiries, please contact our Investor Relations Team at IR@pttgcgroup.com

Thank You

29

1 Thitipong Jurapornsiridee VP-Corporate Finance & IR Thitipong.j@pttgcgroup.com +662-265-8574 2 Jittasak Soonthornpan IR Manager Jittasak.s@pttgcgroup.com +662-265-8172 3 Prang Chudasring IR Analyst Prang.c@pttgcgroup.com +662-265-8327 4 Nattchanon Chawinsittangkul IR Analyst Nattchanon.c@pttgcgroup.com +662-265-8364 5 Pantaree Nantanakom IR Analyst Pantaree.n@pttgcgroup.com +662-265-8714 6 Chutima Jarikasem IR Coordinator Chutima.j@pttgcgroup.com +662-140-8713