3Q 2015 Analyst Presentation November 19, 2015 Business Strategies - - PowerPoint PPT Presentation

November 19, 2015

3Q 2015 Analyst Presentation

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Business Strategies

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■ Thai economy recovered at a gradual pace; GDP grew modestly

at 2.9%

■ Pressured by a global over supply, Dubai crude oil decreased to

$45/bbl

■ Industry gross refining margin rebounded to a 3-month high in

September at $7.7/bbl

■ Thailand industry retail market grew by 9% year-on-year ■ Paraxylene prices moved in a narrow range, slightly decreasing

from the previous quarter

3Q15 Macro Environment

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■ Crude run of 135 KBD with a negative gross refining margin of $0.9/bbl mainly driven by

the impact of a stock loss

■ Paraxylene production of 63 Ktons, a slight increase from the previous quarter but still

reflective of current industry environment

■ Started full streamline operations to improve feed into the Fluid Catalytic Cracking Unit ■ Launched premium ADO at 218 sites and E20 at 376 sites as of September ■ Added 14 new service stations and expanded alliance partnerships (e.g., Burger King,

Tesco Lotus, Family Mart, Car Studio, and Clean4you)

3Q15 Business Highlights

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4.8 8.0 6.3 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 3Q 14 2Q 15 3Q 15

Operating Performance

• 5.8

13.1

• 0.9
• 10.0
• 5.0

0.0 5.0 10.0 15.0 3Q 14 2Q 15 3Q 15 13.2 19.5 19.3 15.5 15.8 13.1 0.0 5.0 10.0 15.0 20.0 25.0 3Q 14 2Q 15 3Q 15 UGP ADO 127 141 135 40 80 120 160 3Q 14 2Q 15 3Q 15

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

Industry GRM and Crack Spread Source: Reuters Dubai ($/bbl) 97 62 45 (Dubai crude oil price at quarter-end)

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Operating Performance

Crude Intake by source Refinery Production Sales Channel

■ Processed higher levels of Middle East and South East crudes,

reflecting catalyst management and streamlined operations

■ Higher feedstock and lower heavy yield production from

improved crude diversification

■ Greater proportion of commercial sales with a reduction in

exports

FY2014 YTD2015 24% 33% 52% 54% 3% 2% 21% 11% Caspian West African Far East & South East Middle East FY2014 YTD2015 11% 10% 45% 45% 28% 27% 16% 18% Feedstock Light Middle Heavy FY2014 YTD2015 48% 49% 38% 38% 14% 13% Export Retail Commercial

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Operating Performance

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

■ Paraxylene spreads decreased from the previous quarter as industry condition remained challenging

due to excess capacity in the region

■ Production levels increased slightly but continued at minimum operating levels

364 227 220 205 126 116 50 100 150 200 250 300 350 400 3Q 14 2Q 15 3Q 15 PX-UGP PX-MX 69 59 63 54 56 58 60 62 64 66 68 70 3Q 14 2Q 15 3Q 15

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Refinery Update

■ Achieved flawless operations

– Reached 13 million man-hours without a lost time injury – Sustained reliable operations

■ Started full streamline operations following capacity

modification improvements – Lower feedstock costs – Improved feed quality to the conversion unit (FCC) – Improved energy efficiency – Increased asphalt production

■ Asphalt quality improvement project is underway

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Marketing Business Performance

YE 2014 3Q 2015 2015 Plan 2015 OL 151 218 200 240 YE 2014 3Q 2015 2015 Plan 2015 OL 327 376 500 400 YE 2014 3Q 2015 2015 Plan 2015 OL 280 287 300 300 YE 2014 3Q 2015 2015 Plan 2015 OL 24 14 30 24

Service Stations offering Premium ADO Service Stations offering E20 New Service Stations Mobil 1 Centers

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Comprehensive Income

4.7 (1.5) (2.0) (1.0)

• 1.0

2.0 3.0 4.0 5.0 6.0 2Q2015 3Q2015 0.2 0.18

• 0.1

0.2 2Q2015 3Q2015 45 42

• 10.0

20.0 30.0 40.0 50.0 2Q2015 3Q2015

Sales Revenue Interest Expenses Net Profit/(Loss)

3.3 (1.7) (2.0) (1.0)

• 1.0

2.0 3.0 4.0 2Q2015 3Q2015

EBITDA

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Comprehensive Income

15 13 33 33 13 9 3 3

10 20 30 40 50 60 70 2Q2015 3Q2015

Shareholder's Equity Debt Payables Others

Balance Sheet Indicators Cash Flow

37 37 2 1

4 4

21 15 0.5 0.5

10 20 30 40 50 60 70 2Q2015 3Q2015

Cash Inventory Receivables Other current Asset Non-current Assets 2.7 2.7 (0.2) (0.4) (2.4) (2.3)

• 3
• 2
• 1

1 2 3 4 2Q2015 3Q2015

Cash flows from financing activities Cash flows from investing activities Cash flow from operating activities

■ Decrease in assets driven by lower inventory value ■ Decrease in liabilities driven by lower crude payables ■ Debt to equity increase slightly with lower shareholders equity due to

3Q loss

■ Cash flow from operating reflects strong operating performance ■ Cash flow used in investing activities resulted from investments for

capacity maintenance and retail network

■ Financing activities reflect repayment of debt

D/E 2.2 D/E 2.5

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2015 Projects

Summary

■ Continue to focus on operational excellence ■ Execute energy efficiency and margin enhancement projects ■ Expand Retail network and premium product offerings ■ Leverage strong financial rating with support from parent