2Q2020 Analyst Presentation August 17, 2020 Disclaimer The - - PowerPoint PPT Presentation

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2Q2020 Analyst Presentation August 17, 2020 Disclaimer The - - PowerPoint PPT Presentation

2Q2020 Analyst Presentation August 17, 2020 Disclaimer The information contained in this presentation is provided by Esso (Thailand) Public Company Limited (the "Company") and is subject to change without notice, its accuracy is not


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2Q2020 Analyst Presentation

August 17, 2020

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The information contained in this presentation is provided by Esso (Thailand) Public Company Limited (the "Company") and is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the

  • Company. None of the Company, or any of their respective members, directors, officers, employees or affiliates nor any other

person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or

  • therwise arising in connection therewith.

This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of

  • perations and financial condition, and future events and plans of the Company. These statements can be recognized by the use
  • f words such as "expects," "plans," "will," "estimates," "projects," or words of similar meaning. Such forward-looking statements

are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. Forward-looking statements are based on management’s knowledge and reasonable expectations on the date hereof, and the Company assumes no duty to update these statements as of any future date. This presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information set forth in this presentation or on its completeness.

Disclaimer

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Industry and Business Environment

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  • COVID-19 significantly impacted 2Q20 economic including fuel demand and margins
  • 2020 GDP growth further revised down to contract 8.5%
  • Average Dubai prices in June was $40.8/Bbl
  • 2Q20 Industry gross refining margin was -$0.9/Bbl
  • June 2020 YTD Thailand fuel demand decreased 13.4% Y-Y

Source : Reuters: Oil prices, Industry GRM, GDP forecast : Fiscal Policy office:, DOEB : Industry demand growth

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Headline Results

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  • Safely managed staff and facilities during

Covid-19 pandamic

  • Refinery crude intake at 111 KBD
  • Gross Refining Margin of -$5.5/Bbl
  • Esso retail network totaling of 654 sites
  • Esso Smiles Drivers Rewards 4th Year

Anniversary

  • Second quarter net loss of Baht 2,503 million
xxx
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1.3

  • 19.3
  • 5.5

2.9

  • 12.7

2Q19 1Q20 2Q20 1H19 1H20 7.5 6.7 2.6 5.6 4.6 12.8 11.7 7.1 13.1 9.4 2Q19 1Q20 2Q20 1H19 1H20 UGP ADO 135 122 111 140 117 2Q19 1Q20 2Q20 1H19 1H20

Margins and Crude Intake

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Industry Gross Refining Margin ($/Bbl) Crack Spread ($/Bbl) Crude Intake (KBD)

Source : Industry GRM and Crack Spread from Reuters

Gross Refining Margin ($/Bbl)

3.5 1.2

  • 0.9

3.3 0.2 2Q19 1Q20 2Q20 1H19 1H20

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Crude Source and Sales Channels

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  • Continued to seek advantaged crudes to improve refining economics
  • Maintained focus on high margin sales through Retail, Commercial business

Crude Intake by Source Sales Channel

1H19 1H20 24% 30% 44% 34% 31% 36% Middle East Far East & South East Asia Others 1H19 1H20 5% 6% 40% 41% 55% 53% Commercial Retail Export

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Refinery Yields

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Production by Type Product Yields

  • Adjusted crude run and production plan in response to market environment change
  • Reduced Jet production till achieve zero rundown in June’20

1H19 1H20 17% 17% 11% 10% 44% 44% 28% 29% Light Middle Heavy Feedstock 1H19 1H20 17% 17% 9% 8% 2% 2% 9% 6% 35% 38% 19% 22% 4% 3% 5% 4% LPG Naphtha Gasoline Diesel Jet/Kerosene Asphalt Fuel Oil Feedstock and others

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Petrochemical Spreads and Production

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  • Margins still weak from demand – supply imbalance
  • Production runs to meet sales obligation

Px Spread ($/Ton) Px Production (kTon/quarter)

90 53 39 95 46 2Q19 1Q20 2Q20 1H19 Avg 1H20 Avg 270 219 214 372 217 201 118 103 287 111 2Q19 1Q20 2Q20 1H19 1H20 PX-UGP PX-MX

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Marketing Business Update

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Number of Service Stations offering Supreme Plus Diesel Number of Service Stations offering Premium Products Number of Service Stations offering B10 Number of Outlets with Mobil Signage Number of New Service Stations

337 382 425 443 141 205 254 275 2017 2018 2019 1H20 553 608 638 654 125 541 2017 2018 2019 1H20 Total Service Stations B10 27 73 41 17 2017 2018 2019 1H20 779 1,221 1,641 1,645 2017 2018 2019 1H20

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Financial Performance

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Sales Revenue (Billion Baht) Cash Flow from Operations (Billion Baht) EBITDA (Billion Baht) Net Profit (Billion Baht)

45.7 24.4 91.8 63.8 2Q19 2Q20 1H19 1H20 (0.8) (2.5) 0.9 (9.8) 2Q19 2Q20 1H19 1H20 (1.9) (1.1) (0.5) 0.0 2Q19 2Q20 1H19 1H20 (0.9) (2.5) 0.1 (8.8) 2Q19 2Q20 1H19 1H20

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22.1 13.1 26.9 27.7 YE2019 QE20 Shareholders’ equity Debt

Financial Position

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Balance Sheet Indicators (Billion Baht) Cash Flows (Billion Baht)

  • Decrease in assets driven by lower inventory

balances and trade receivables, and utilization

  • f prepaid excise tax.
  • Debt increased to Baht 27.7 billion
  • Debt-to-equity ratio 2.1
  • Cash flow used in investing activities mainly for

Marketing network expansion and Refinery projects

  • Cash flow from financing activities reflected net

proceeds from borrowings

D/E = 2.1 D/E = 1.2 (0.3) (0.5) 1.0 0.5 (0.5) 0.0 1H19 1H20

Cash flow from (used in) operating activities Cash flow from (used in) financing activities Cash flow from (used in) investing activities

34.3 38.8 19.1 12.7 6.5 4.0 6.4 4.2 YE2019 QE20 Non-current assets Inventory Trade receivables Other current assets

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Summary

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  • Global pandemic significantly impacted 2Q20

financial results with lower prices, margins and sales volume

  • Safe operations with reduced crude run in response

to change in demand

  • Successfully achieved zero jet production in June’20
  • Continued to expand retail network to exceed the

targeted 670 services stations in 2020

  • Kept on a focus on cost saving and effective

spending

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IR contact details:

  • Email: essoir@exxonmobil.com
  • Numbers: +662-407-4788
  • Websites: http://esso.listedcompany.com/home.html