Analyst Presentation Q4 & FY/ 06 Results 22 February 2007 - PowerPoint PPT Presentation

Thai Oil Public Company Limited Analyst Presentation Q4 & FY/ 06 Results 22 February 2007

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Contents Contents • 2006 Key Highlights • Consolidated Financial Performance • Progress of Investment Projects • Business Outlook 3

Awards & Recognitions in 2006 Awards & Recognitions in 2006 Highest Credit Ratings Among Pure-Play Refineries in the Region LT: Baa1 LT: BBB LT: AA-(tha) & ST: F1+(tha) One of the Most Popular Stocks on the SET • 2 nd: Largest Revenues ~ US$ 6 bn. (5% of SET) - 9M/06 • 4 th : Largest Net Profit ~ US$ 0.4 bn. (4% of SET) - 9M/06 • 6 th Most Liquidly Daily Traded ~ US$ 12 mn. (3% of SET) - 2006 • 8 th : Largest Market Cap. ~ US$ 3 bn. (2% of SET) - 2006 Best Newly Listed Company & Best Corporate Governance Report Most Improved Company in Asia Award 2006 33 rd : Platts Top Companies in Asia 1,330 th : World’s 2000 Leading Companies 140 th : Platts Top Companies Globally 1 of 13 : Thai Listed Companies 4

2006 Key Highlights 2006 Key Highlights Investment Operation & Commercial All approved major projects progressed as planned. • Successfully increased refining capacity by 5 kbd • to 225 kbd from synergy project with TLB. Engaged PMC for 500,000 L/D ethanol plant • (cassava-based) with an aim to complete project Maintained high utilization of Refinery, TPX and • specification and detailed cost estimate by Q2/07. maximized lube base production (after 1st major turnaround and by co-processing Hydrocracker Signed JV agreement with PDI and Mitr Phol to • bottom). study & develop 100,000 L/D ethanol plant (based on sugar cane) at Maesod, Tak to diversify Maintained high integrated Refinery / TPX / TLB • feedstock sources. margin through joint production planning, cooperation within PTT group, products Finance diversification and margin improvement program:- Paid annual dividend of Bt 3.50/share (40% payout • Collaborated with PTT / RRC / IRPC for crude • vs. min. stated 25%) & 1st interim dividend of Bt. sourcing and delivery, thereby reduced freight 1.50/share. costs, Diversified sources of funds by issuing inaugural • Maximized jet production / export at the • THB bond of Bt. 5,500 mn. (AA- Fitch’s) & Cross expense of diesel during flooding in Thailand, Currency Swap to US$. • Increased overall margin ~ US$ 0.50/bbl through Successfully negotiated to reduce cost of existing Hydrocarbon Management Review (HMR) and • domestic syndicated loans by ~ 1.375% or Bt. 72 other activities. mn./yr. Repaired & reinstalled transformer 2 months ahead • of plan and received satisfactory insurance Prepaid, repaid & refinanced loans, thus lowering • compensation (BI of Bt. 328 mn. & PD of Bt. 66 mn.). interests by ~ Bt. 134 mn. in 2006. 5

TOP Group’ ’s Integrated Margin s Integrated Margin TOP Group 7 33 (US$/T) +42% 732 57 6 575 527 40 3 399 402 398 PX – ULG 95 371 Plat Q1/06 Q2 Q3 Q4 FY/05 FY/06 (US$/bbl) 10.62 -25% Oil Products 6.62 Crude 4.96 4.65 GRM Mrk. Mrg. 2.70 1.51 Stock G/(L) L/R Q1/06 Q2 Q3 Q4 FY/05 FY/06 6 88 (US$/T) % 624 687 5 526 7 623 48 1 + 579 525 480 LB - HSFO 331 Integrated Margin (US$/bbl) Q1/06 Q2 Q3 Q4 FY/05 FY/06 TOP Acct GRM TPX TLB 12.56 • TOP’s integrated refinery & petrochem 0.38 - 8 % operations lead to increased and more 1.57 8.39 stable margins. 7.69 7.00 0.24 6.37 0.64 1.53 • Group’s integrated margin stood at 0.54 0.81 4.57 2.09 1.82 10.62 $7.69/bbl, 8% reduction vs. 25% drop of 2.86 0.87 6.62 GRM. 2.19 4.96 4.65 2.70 1.51 6 Q1/06 Q2/06 Q3/06 Q4/06 FY/05 FY/06

Improved Operations Improved Operations 2005 & 2006 Refinery Utilization PX Production Lube Production Availability Utilization Utilization 105 104 (%) 97 96 92 91 92 92 82 77 74 71 FY/05 FY/06 TOP TOP TPX TPX TLB TLB IPT IPT TP TP TM TM TOP TPX TLB IPT TP TM (Bt. mn.) 2006 Net Profit 7,497 5,666 2,322 1,573 318 30 ∆ YoY -2,099 +1,996 +724 +1,130 -154 +1 % ∆ YoY -22% +54% +45% +255% -33% +3% 7

Financial Highlights Financial Highlights Net Profit from Operation by Sectors – FY/05 & FY/06 EBITDA & Net Profit from Operation by Quarters (Bt. mn.) 29,003 -14% YoY Bt. 15,948 mn. Bt. 16,647 mn. 25,014 4,803 Q4 3,438 Power Power +4% YoY 11% 9,737 6% LB 5,993 16,647 15,948 LB 10% Q3 1,840 13% Refinery 2,521 PX 43% 3,843 +4% FY/06 FY/05 23% Q2 10,232 8,126 6,254 6,878 PX Refinery 3,531 33% 61% Q1 6,338 5,351 4,086 3,691 EBITDA 05 EBITDA 06 NP fr. Oper. 05 NP fr. Oper. 06 *Exclude other activities (Gain & Loss from Fixed Asset sold & Assets Impairment) Q4/06 - While GRM dropped significantly, subsidiaries (TPX, TLB & IPT) contributed strongly • to Group’s bottom line, Net Profit from Operation in Q4/06 was Bt. 1,840 mn. FY/06 - Group's Net Profit from Operation increased marginally (by 4% YoY), thanks to • strong GRM in Q2/06 and robust PX & LB margins, especially in 2H/06. 8

Contents Contents • 2006 Key Highlights • Consolidated Financial Performance • Progress of Investment Projects • Business Outlook 9

Consolidated Profit & Loss Statement Consolidated Profit & Loss Statement (Bt. mn.) Q4/05 Q3/06 Q4/06 % YoY % QoQ FY/05 FY/06 % YoY Sales Revenue 67,081 77,807 61,723 -8% -21% 249,111 279,109 +12% EBITDA 4,803 5,993 3,438 -28% -43% 29,003 25,014 -14% EBIT 3,270 4,054 1,636 -50% -60% 22,538 17,922 -20% Interest Expenses (538) (481) (496) -8% +3% (2,152) (1,917) -11% FX Gain/(Loss) 38 511 850 +2,137% +66% (1,032) 3,489 +438% Tax Expense (249) (301) (150) -40% -50% (3,406) (2,847) -16% Net Profit from Operation 2,521 3,783 1,840 -27% -51% 15,948 16,647 +4% Gain/(Loss) fr. Other Act.* 2,756 0 1 -100% 0% 2,805 (52) -102% Net Profit 5,277 3,783 1,841 -65% -51% 18,753 16,595 -12% Thaioil 164 783 (425) -359% -154% 9,596 7,497 -22% Subsidiaries 5,113 3,000 2,266 -56% -24% 9,157 9,098 -1% EPS (Bt/sh.) 2.59 1.85 0.90 -65% -51% 9.19 8.13 -12% Bt/US$ - ending 41.17 37.64 36.23 -12% -4% 41.17 36.23 -12% Effective Tax Rate (%) 4% 7% 7% +3% 0% 15% 14% -1% *Other Activities mean Gain & Loss from Fixed Asset sold & Assets Impairment. 10

Diversification & Cost Reduction Diversification & Cost Reduction Consolidated Debt Debt Portfolio Bt. 30,452 mn. Bt. mn. JPY Loan Group’s total debt at YE/06 • (-US$ 841 mn.) reduced to Bt. 30,452 mn. due THB Loan 40,284 TP mainly to prepayment / repayment US$ Loan 1,170 IPT 2% of LT loans, by Bt. 8,191 mn. in 35,869 US$ & THB Bonds 16% 2006. 10,015 5,894 30,452 TPX has successfully secured 28,504 • TOP new attractive LT loan in Q4/06 to 1,170 4,976 (16%) 25,848 82% finance expansion. 24,934 2,600 5,842 2,600 TOP’s inaugural Bt. 5,500 THB • 15,580 7,308 (24%) 4,166 bond helps smoothen repayment 8,853 As of 31 Dec’06 profile. 29,099 TOP Group ’’ s Repayment Schedule Consolidated Repayment Schedule 21,492 14,395 18,168 14,395 18,168 (60%) US$ $ 350 mn. 400 Euro Bond 350 300 $ 72 mn. FY/04 FY/05 FY/06 FY/04 FY/05 FY/06 BHT Bond $ 72 mn. Consolidated TOP Only BHT Bond 200 FY/06 Conso. TOP Only 148 145 118 US$ / Bt. 84 / 16 90 / 10 97 100 Fixed / Float 49 / 51 51 / 49 31 30 39 12 Bond / Loan* 60 / 40 73 / 27 0 '07 '08 '09 '10 '11 '12 '13 '14 '15 Cost of Debt 6.3% 6.2% Remarks: No long-term debts for TLB & TM , Numbers based on FX = Bt. 38/US$ 11 *THB Bond swapped into US Loan with floating interest rate

Financial Strength Financial Strength Balance Sheet Financial Ratios Bt. mn. (Times) Treasury Policy 124,682 124,169 Total Assets Net Debt / Equity <= 1.0x 115,427 Net Debt / EBITDA <= 2.0x LT Debt 30,452 35,869 13.5 13.1 Current 48,390 40,284 Other Assets 11.1 21,417 ICR Liabilities Net Debt / EBITDA 1.3 76,292 1.0 Total 0.8 Non-current Equities 72,813 Net Debt / Equity Assets 0.6 0.4 0.3 2004 2005 FY/06 FY/04 FY/05 FY/06 Dividend 9.19 Bt./Sh. Dividend Policy : Not less than 25% of net profit after • 8.13 7.82 reserves, subject to investment plans. EPS 45% 40% Dividend Payments for FY/06 Result 25% 3.50 3.50 Interim Dividend Bt. 1.50/sh. 25% Min. Div. Payout 2.00 1.80 Final Total Annual Dividend Bt. 3.50/sh. Dividend 1.50 Interim Closing of Register Book : 21 Mar’07 FY/04 FY/05 FY/06 Payment : 3 May’07 Payout 25% 40% 45% Yield 3.5% 5.5% 6.7% 12