Analyst Presentation March 6, 2020 Disclaimer The information - - PowerPoint PPT Presentation

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Analyst Presentation March 6, 2020 Disclaimer The information - - PowerPoint PPT Presentation

4Q2019 and FY2019 Analyst Presentation March 6, 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


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4Q2019 and FY2019

Analyst Presentation

March 6, 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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  • Average Dubai prices in Dec was $64.9/Bbl
  • 4Q19 Industry gross refining margin was $1.6/Bbl
  • 4Q19 Thailand GDP growth at 1.6%, and 2019 at 2.4%
  • 2019 Thailand fuel demand increased 1.0% year on year

Source : FPO, Reuters: Oil prices and Industry GRM, DOEB: Industry demand growth, NESDC : GDP

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SLIDE 4

Headline Results

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Fourth quarter:

  • Crude intake 76 KBD reflected refinery maintenance
  • Gross Refining Margin of -$2.5/Bbl
  • Esso retail network totaling of 638 sites
  • First “EMF.5” IMO-compliant delivery in Dec
  • Net loss of Baht 1,870 million
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Headline Results

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Full year:

  • Refinery maintenance completed, 2019 crude

run of 114 KBD

  • Optimized Petrochemical production in

response to market condition

  • Launched Synergy technology products and

continued expanded service station networks

  • Participated in IMO2020 bunker sales business
  • Net loss of Baht 3,065 million
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SLIDE 6
  • 5

2.8

  • 2.5

4.6 2.1 4Q18 3Q19 4Q19 2018 2019 141 100 76 143 114 4Q18 3Q19 4Q19 2018 2019 4.2 6.5 1.6 5.8 3.7 4Q18 3Q19 4Q19 2018 2019 4.7 11.6 12.9 10.5 9.0 15.5 15.9 14.8 15.2 14.3 4Q18 3Q19 4Q19 2018 2019

UGP ADO

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)

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Crude Source and Sales Channels

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  • Crude diversification continuously improved refining economics
  • Continued focus on high margin sales through retail and commercial channels

Crude Intake by Source Sales Channel

2018 2019 27% 31% 56% 45% 17% 24%

Middle East Far East & South East Asia Others

2018 2019 7% 4% 40% 42% 53% 54% Commercial Retail Export

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Refinery Yields

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Production by Type Product Yields

  • 2019 Refinery yields reflected refinery maintenance; higher heavy products & lower

middle distillates

  • Lower diesel reflected gasoil hydrofiner maintenance shutdown in 2Q19

2018 2019 17% 17% 9% 11%

47% 44%

27% 28%

Light Middle Heavy Feedstock

2018 2019

17% 17% 7% 9%

2% 2%

9% 9% 38% 35% 19% 20% 3% 3% 5% 5%

LPG Naphtha Gasoline Diesel Jet/Kerosene Asphalt Fuel Oil Feedstock and others

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514 194 164 359 275 340 111 113 229 199 4Q18 3Q19 4Q19 FY2018 FY2019 PX-UGP PX-MX

Petrochemical Spreads and Production

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  • Margins weakened from excessive supply from new capacity
  • Production run reduced due to refinery maintenance and in response to market situation

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

97 52.9 39 366 281 4Q18 3Q19 4Q19 2018 2019

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Marketing Business Update

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

23 15 27 73 41 2015 2016 2017 2018 FY19 337 382 425 141 205 254 2017 2018 2019 295 345 779 1,221 1,641 2015 2016 2017 2018 2019 541 542 553 608 638 0% 35% 81%

0.2 0.4 0.6 0.8 1 1.2 400 500 600 700

2015 2016 2017 2018 2019

Total Service Station Numbers Synergy stations (% of total stations)

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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)

51.4 37.8 200.8 169.3 4Q18 4Q19 2018 2019 (2.9) (1.8) 4.5 (2.1) 4Q18 4Q19 2018 2019 (2.7) (1.9) 2.2 (3.1) 4Q18 4Q19 2018 2019 0.7 (8.1) 2.1 (10.2) 4Q18 4Q19 2018 2019

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25.8 22.1 15.3 26.9

YE2018 YE2019

Shareholders’ equity Debt

Financial Position

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

  • Increased in assets mainly driven by prepaid

excise tax payment for imported products, deferred income tax assets, and higher inventory balances.

  • Debt increased to Baht 26.9 billion
  • Debt-to-equity ratio 1.2
  • Cash flow used in investing activities reflected

capital investment for Refinery and Marketing

  • Cash flow from financing activities was a result of

net proceeds from borrowings partly offset by dividend payments

D/E = 1.2 D/E = 0.6 32.5 34.3 18.4 19.1 6.3 6.5 4.5 6.4

YE2018 YE2019

Non-current assets Inventory Receivables Other current assets

(0.9) (1.2) 2.1 (10.2) (1.2) 11.2 2018 2019 Cash flow from (used in) financing activities Cash flow from (used in)

  • perating activities

Cash flow from (used in) investing activities

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2020 Key Plan

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  • Leverage strength to win in the marketplace
  • Maximize value extraction, Continue operation excellence
  • Optimize Px production reflecting poor margin
  • Improve sales footprint growth and hi-grade portfolio
  • Optimize across integrated value chain
  • Drive operation excellence and cost efficiencies mindset
  • Enhance customer experience with high quality products

and loyalty programs

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IR contact details: Email: essoIR@exxonmobil.com Numbers: +662-407-4788 Presentations: www.esso.listedcompany.com/slides.html

Thank you