GC SET Digital Roadshow 29 November 2018 1 Disclaimer This - - PowerPoint PPT Presentation

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GC SET Digital Roadshow 29 November 2018 1 Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals

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GC SET Digital Roadshow

29 November 2018 1

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SLIDE 2

This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. PTTGC has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward- looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward- looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and PTTGC does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

Disclaimer

2

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SLIDE 3

Vision and Mission

3

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SLIDE 4

PTTGC Sustainable Development

4

FOR 6th CONSECUTIVE YEAR

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SLIDE 5

Agenda

5

02 01

Strategic Direction Business Overview

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SLIDE 6

PTTGC by the numbers

10.2 Million ton of petrochemical capacity 280 KBD of Petroleum Refining Capacity 3 Rank in DJSI World Member in Petrochemical 8 Business units with Fully integrated

petrochemical and refinery operations

1 The largest ethane cracker in Thailand

8 Business Units

AROMATICS OLEFINS POLYMERS GREEN PC PHENOL REFINERY EO BASED

Business Overview

16% 16% 56% 3% 3% 5%

BUs Contribution

48% 20% 21% 5% 5% 1% Revenue Adj EBITDA

6

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SLIDE 7

Highly competitive cost structure from having Gas Profit Sharing concept is based on the integrated margin from gas to HDPE. Margin split based on equitable return on investment of PTT and PTTGC

PTTGC’s Gas Price Formula

Derives to

Business Unit Adj. EBTIDA Margin Competitive Cost Structure Strategic location and integrated through value chain in Map Ta Phut area

Located in 5 industrial estate in nearby area, 27 sites Dividend

Business Overview

7

1.68 0.95 1.62 1.00 1.50 1.05 1.75 1.75 1.30 2.45 1.78 1.37 1.30 1.80 2.50 45% 45% 46% 70% 61% 50% 49% 34%

2011 2012 2013 2014 2015 2016 2017 2018

1st Half 2nd Half Payout Ratio

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SLIDE 8

Note: * Restatement to include Assets injection of 6 companies, retrospect to 1 January 2016 ** Adjusted EBITDA refers EBITDA excluding impact of oil stock value *** Reported only portion attributable to the Company and actual realization after the Asset injection

Overview of business unit performance

102% 94% 97% 98% 103% 82% 113% 96%

0% 50% 100% 150% Refinery Aromatics Polymer Olefins

Operating Rate

Q3'17 Q3'18

Q3/18 net profit increased 2,838 MB or 29% YoY mainly from;

  • 1. Adj EBITDA increased by 1,798 MB mainly from Aromatics and Phenol
  • 2. Share of gain from JV&Associates: increased 1,092 MB especially from PTTAC as better AN

and MMA price , also supported by healthier performance from NatureWorks.

  • 3. Stock gain/(loss) decreased 158 MB (Q3/18 gain of 804MB vs. Q3/17 gain of 962MB)

6.44 8.08

Market GRM

Q3'17 Q3'18

247 185

BTX Margin

Q3'17 Q3'18

26% 28%

OLE & Derivative EBITDA (%)

Q3'17 Q3'18

$/bbl $/T

8

(Unit: Million Baht) Q3/2017 (Restate)* Q2/2018 Q3/2018 YoY % +/(-) QoQ % +/(-) 9M/2017 (Restate)* 9M/2018 YoY % +/(-) Sales Revenue 104,583 128,923 136,712 31% 6% 318,002 386,574 22% EBITDA 15,994 18,574 17,634 10%

  • 5%

46,886 52,517 12% EBITDA Margin (%) 15% 14% 13%

  • 2%
  • 2%

15% 14%

  • 1%

Share of profit of investments in JV and Associates 875 1,515 1,967 125% 30% 3,870 5,506 42% (Profits attributable to Owners of the Parent)*** 875 1,515 1,967 125% 30% 1,656 5,506 233% Net Profit 9,955 10,828 12,793 29% 18% 29,740 36,008 21% EPS (Baht/Share) 2.23 2.40 2.84 27% 18% 6.66 7.99 20% Adjusted EBITDA** 15,032 15,902 16,830 12% 6% 46,517 49,051 5% Adjusted EBITDA Margin (%) 14% 12% 12%

  • 2%

0% 15% 13%

  • 2%
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SLIDE 9

9,955 389 72 1,716 1,292 291 12,793

Q3-17 Q3-18

  • Overall operating profit from main BUs in Q3/18 was higher than Q3/17, mainly from
  • OLE & Derivatives has improved from increasing in price of all major product i.e. polyethylene, MEG and ethylene price. In

addition, the selling volume of polyethylene is increased by having additional LLDPE capacity since March 2018..

  • ARO performance recovered as a result of higher P2F on BTX by 62 $/T from an increasing of PX spread as well as higher sales

volume due to higher utilization rate at 94% in Q3/18.

  • Refinery performance slightly decreased from lower Gasoline and Fuel oil spread along with higher crude premium.
  • Sharing from JV & Associate was increased from performance of asset injection company, especially PTTAC from better AN

and MMA price , also supported by healthier performance from NatureWorks.

Performance comparison YoY 9

Stock Gain/(Loss) & NRV&Commodity Hedge Q3’18 = 578 Q3’17 = 967 FX Gain/(Loss) Q3’18 = 167 Q3’17 = 239 Unit : MB Operating Profit from main BUs Others Sharing from Subsidiaries, JV & Associate Q3’18 = 2,102 Q3’17 = 810

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SLIDE 10

Strong Financial Position

Cash Flow

THB Bn

Statements of Financial Position

Cash +ST Investment CA PPE Liab. IBD Share Holder’s Equity Sep 30,2018 456 Bn Dec 31,2017 435 Bn

  • Cash & ST Investment (49 billionTHB) and private fund

and inhouse management of 7.9 billion THB at the end

  • f Q3/18.
  • In Q3/18, the interest bearing debt is 63% on fixed rate

and 37% is float rate. THB debt is a major portion of 55% of our debt profile, while 45% is in USD, mainly from US Bond.

  • Q3/18, the major capex has been based on announced

investment mainly from ongoing projects which are ORP, PO&Polyols project and land acquisition.

  • The repayment profile is around 12 billion THB per

year on average but 2021 will increase from retirement

  • f THB bond (4-yr, 3.05%), as well as 2022 will increase

from maturity of USD bond.

  • The average loan life is ~3.54 years with average cost of

long term debt ~3.77%.

Note : Private Fund and In house management around 7,900MB

10

55 49 45 22 29

Beginning Cash + S/T Investment Operating Cash Flow CAPEX Financing Ending Cash + S/T Investment

83 75 231 220 93 86 49 55 297 280 91 98 68 57

Non CA

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SLIDE 11

Agenda

11

02 01

Strategic Direction Business Overview

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SLIDE 12

Sustain Core Accelerate Growth levers Balance Business & Social Value To be a Leading chemical company for Better living

  • International hub
  • Performance chemicals
  • Green business
  • Sustainable development
  • Effective CSR programs
  • Stakeholder management

Business Competitiveness

  • Project MTP retrofit

Olefins Reconfiguration

  • Project MAX

Improve productivity

  • Project Asset Injection

Enhance business clarity & Maximize integration

Strategic Direction

12

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SLIDE 13

2019 Key Development

CIRCULAR ECONOMY SINGLE USE PLASTIC DOWNSTREAM INTEGRATION DIGITAL CLMV MARKET STRATEGY 13 DIGITAL CLMV MARKET STRATEGY CIRCULAR ECONOMY SINGLE USE PLASTIC

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SLIDE 14

Downstream Integration

Acquired share in RGL for rotomolding compound business Acquired share in SMPC and TPRC to capture downstream

  • pportunity in aromatic chain

Establishment of Joint Venture Company “Kuraray GC Advance Material Co.,Ltd”.

GC continue to have more present in downstream business through extending the value chain

Extending propylene value chain by investing in PO and JV in polyols project to penetrate into PU chain in Asian region

14

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SLIDE 15

2018 2020 2019

PO/Polyols (330 KTA)

: 26% (plan 21%) & 25% (plan 22%) progress

Olefins Reconfiguration (750 KTA) : 30% (Plan

28%) progress

ME Plant 2 (200 KTA)

(COD Q4/18)

EO-Based Derivatives

i.e. HOA in Softanol

Performance Chemical in C4 Chain i.e. JV in PA9T,

HSBC

Expansion Olefins & derivatives

i.e. Signed HOA on US petrochemical project

Performance Materials in Olefins chain Biocomplex

i.e. HOA of GGC

Potential investment and project under study Committed investment project

LLDPE II (434 KTA)

(COD 1st Mar)

Strategic Direction : Consistent volume growth

15

SMPC: PTA (970 KTA) TPRC: PET (147 KTA) RGL: Rotomolding compound (61KTA)

Digit gitaliza lizati tion

Modification LLDPE II to swing plant for HDPE production

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SLIDE 16

Digitalization enhancing productivity on top of MAX

  • Advance analytic

for commercial Robot for finance CRM Advance analytic for operation Asset Performance Management Furnace management Turnaround management Material movement

Digital use cases

2019 Onwards Supply Chain Optimization Optimize Product Portfolio Operating Cost Saving Packaging Cost Reduction Improve work efficiency Digit italiza ization ion

Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 (F) Q1'19 (F) Q2'19 (F) Q3'19 (F) Q4'19 (F)

Target 10,500 MB

2016 2018 2019

Onward

Di Digitalizatio ion roa roadmap

Knowledge management EBIT 150 M$/yr by 2022

MAX initiatives

16

People foundation

  • Organization Health Index (OHI)
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SLIDE 17

CLMV Market Strategy

Official opening JV of SP PetPack at Thilawa Special Estate Zone, Myanmar Register company in September 2018 Opening in June 2018 GC host Business Matching Cambodia 2018 at Phnom Penh, Cambodia JV in TPBI & Myanmar Star Company limited, Myanmar GC participate in Propak Myanmar 2018

CLMV Target > 350KTA in 2021

17

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ENHANCE ENVIRONMENTAL

FOOTPRINTS

20 17 O N W A R D S

JOURNEY OF CIRCULAR ECONOMY IN GC

CREATE STRATEGIC

PARTNERSHIPS

20 11

  • 3Rs
  • CARBON FOOTPRINT
  • ZERO WASTE TO LANDFILL
  • LIFE CYCLE ASSESSMENT
  • PRODUCT STEWARDSHIP

20 05

START

BIO-CHEMICAL PRODUCTION

  • TOL (2005)
  • EMERY (2008)
  • UPCYCLING THE OCEANS, THAILAND
  • UPCYCLING PLASTIC WASTE
  • CIRCULAR ECONOMY
  • 5Rs
  • ECO-DESIGN
  • BIO-COMPLEX

20 12

START

BIO-PLASTIC PRODUCTION

  • NatureWorks

18

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SLIDE 19

Reduce

Shift from film to durable Target : Reduce Single use shopping bag from 150 KTA to 0 within 2023 Pipe Large Blow Wire & Cable

PBS PLA

  • Home compostable
  • No toxic

Collaborate with brand owner or wholesaler

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Pla lan n fo for Single use plastic by applying 3Rs (1/2)

Replace with BioPlastics

1

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Reuse

PROPOSE SOLUTION DESIGNED REUSABLE BAG

Shopping bag (Single use)

WITH CREATIVE DESIGN

REUSABLE SHOPPING BAG

Thicker Durable Design MULTI-FUNCTION REUSABLE BAG

Recycle

Build Recycling plant &Create Awareness

rHDPE and rPET Recycling plant

Create Awareness Market

Pla lan n fo for Single use plastic by applying 3Rs (2/2)

2 3

20

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SLIDE 21

Thank You

21

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 Nattchanon Chawinsittangkul IR Analyst Nattchanon.c@pttgcgroup.com +662-265-8364 4 Pantaree Nantanakom IR Analyst Pantaree.n@pttgcgroup.com +662-140-8714 5 Jinthip Prakobwit IR Analyst Jinthip.p@pttgcgroup.com +662-265-8361 6 Preeyapa Asarangchai IR Analyst Preeyapa.a@pttgcgroup.com +662-265-8213

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Agenda

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Appendix

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Maintenance Shutdown Schedule 2019

23

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cracker HDPE LDPE LLDPE I LLDPE II PS TOCGC Phenol I Phenol II BPA

REF

Refinery Aromatics I Aromatics II

ARO

Plant

2019

PHN OLE POL EOB

54 53 15 12 15 HDPE1

HDPE2

43 22

HIPS 10 15 GPPS

20 12

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Consolidated Income Statement

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Q3/2017 (Restate)* Q2/2018 Q3/2018 YoY % + /(-) QoQ % + /(-) 9M/2017 (Restate)* 9M/2018 YoY % + /(-) Sales Revenue 104,583 128,923 136,712 31% 6% 318,002 386,574 22% Feedstock cost (77,396) (100,245) (106,082) 37% 6% (236,590) (298,446) 26% Product to Feed Margin 27,187 28,678 30,630 13% 7% 81,412 88,128 8% 1 Variable Cost (6,323) (6,980) (7,153) 13% 2% (18,544) (20,908) 13% 2 Fixed OH (4,051) (3,980) (4,385) 8% 10% (11,378) (12,088) 6% 3 Stock Gain/(Loss) and NRV 962 2,672 804

  • 16%
  • 70%

369 3,466 837% 4 Gain/(Loss) on Hedging Commodity 5 236 (226) 4420%

  • 196%

30 (46)

  • 253%

5 Other Revenue 1,237 1,035 1,423 15% 37% 3,443 3,451 0% 6 SG&A Expenses (3,023) (3,087) (3,459) 14% 12% (8,446) (9,486) 12% EBITDA 15,994 18,574 17,634 10%

  • 5%

46,886 52,517 12% 7 Depreciation & Amortization (5,048) (4,729) (4,800)

  • 5%

2% (15,242) (14,232)

  • 7%

8 Loss from impairment of assets 0% 0% 0% 9 Inventory Loss (GGC)**** (2,004) 0%

  • 100%

(2,004) 0% EBIT 10,946 11,841 12,834 17% 8% 31,644 36,281 15% 10 Net financial expense (749) (901) (531)

  • 29%
  • 41%

(2,313) (1,933)

  • 16%

11 FX Gain(Loss) 239 (682) 167

  • 30%

124% 2,010 154

  • 92%

12 Share of gain/(loss) from investment 875 1,515 1,967 125% 30% 3,870 5,506 42% Share of gain/(loss) from investment (Owners of the parent)*** 875 1,515 1,967 125% 30% 1,655 5,506 233% 13 Corporate Income Tax (1,233) (1,340) (1,471) 19% 10% (2,843) (4,048) 42% 14 Net Profit after Tax 10,078 10,433 12,966 29% 24% 32,368 35,960 11% Profit/(loss) attributable to: 15 Owners of the Company 9,955 10,828 12,793 29% 18% 29,740 36,008 53% 16 Non-controlling interests 123 (395) 173 41% 144% 2,628 (48)

  • 102%

17 Adjusted EBITDA** 15,032 15,902 16,830 12% 6% 46,517 49,051 5% Note: * Restated due to investment in Asset Injection for comparison purpose. ** Adjusted EBITDA = EBITDA excluded Stock Gain/Loss and NRV. *** Shares of gain/(loss) from investment (Owners of the parent) ****Net effect from Inventory Loss by holding portion 72.29% around 1,388MB Unit : MB

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147.9 149.5 149.7 148.1 147.7 146.8 147.7 149.0 147.4 30.5 28.9 32.3 34.3 34.4 35.9 33.0 30.6 34.4 178.4 178.4 182.0 182.4 182.1 182.7 180.7 179.6 181.8 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18

Crude Condenstate Residue

10% 8% 8% 7% 9% 10% 9% 9% 10% 13% 13% 14% 15% 15% 15% 14% 13% 15% 51% 52% 57% 57% 52% 53% 55% 54% 53% 13% 12% 11% 12% 15% 13% 14% 12% 14% 13% 15% 10% 8% 10% 8% 9% 13% 9% 173 180 170 175 176 171 176 174 174 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18 Others Fuel Oil Diesel Jet Naphtha+Ref.

(3.1) (1.8) (1.4) (3.1) (5.0) (4.5) (2.6) (2.1) (4.0)

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18

11.8 11.4 13.9 13.0 14.8 14.6 14.4 12.4 14.6

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18

14.8 14.2 16.1 14.4 13.7 12.1 11.6 15.0 12.5

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18

Refinery Performance

25

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

ULG 95 - DB Diesel - DB FO - DB

  • 28% YoY
  • 5% QoQ
  • 88% YoY

+42% QoQ +3% YoY +3% QoQ

103% 102% 102% 103% 103% 102% 102% 101% 102%

CDU U-Rate

  • 1% YoY
  • 1% QoQ
  • 17% YoY

+4% YoY

  • 1% QoQ

+18% YoY

  • 89% YoY

+0% YoY +1% YoY

6.02 6.11 8.08 6.76 6.15 6.20 6.44 6.73 6.27 0.72 (1.59) 0.86 3.38 (0.01) 3.26 0.95 0.00 1.41 0.02 0.03 (0.04) (2.84) (0.10) 0.08 0.13

  • 0.04

6.76 4.55 8.90 7.30 6.04 9.54 7.51 6.73 7.72

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/18 9M/19 Market GRM Stock Gain/(Loss) Net NRV Hedging Gain/(Loss) Accounting GRM

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SLIDE 26

420 383 360 356 381 354 501 388 412

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18 6% 6% 6% 9% 11% 11% 11% 6% 11% 31% 34% 24% 29% 29% 30% 30% 30% 30% 39% 35% 42% 39% 36% 38% 35% 39% 36% 24% 25% 28% 23% 24% 21% 24% 25% 23%

758 728 730 967 939 1,014 1,015 2,216 2,967

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18 Other By-Products Naphtha Group PX Group BZ Group

Aromatics Performance

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

PX FECP - Cond BZ Spot - Cond

Products to Feed Margin (USD/Ton BTX)

  • 33% YoY

+1% QoQ +39% YoY +42% QoQ +39 39% YoY

  • Y

+0% Qo QoQ

26

  • 33% YoY

+6% YoY +34% YoY

78% 66% 82% 93% 91% 94% 94% 75% 93%

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18 321 212 185 194 166 130 247 239 182 6.50 (15.93) 31.18 0.13 48.55 15.05 7.29 21.69 0.00 0.00 1.54 3.33 0.21 10.30 (15.25) 0.54 (1.75)

327 196 215 228 167 188 247 247 202

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18 Market P2F Stock Gain/(Loss) Net NRV Hedging Gain/(Loss) Accounting P2F

458 338 320 311 318 212 214 372 248

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18

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SLIDE 27

370 296 271 283 334 353 309 312 332

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18 2,545 1,094 1,165 1,076 1,310 1,524 1,597 1,601 1,477 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18

Olefins and Derivatives Performance

27

Olefins Prices and Spread (USD/Ton) Olefins U-Rate (%) Olefins Adjusted EBITDA Margin

MEG – 0.65Ethy Product Price Butadiene Price

+14% YoY

  • 12% QoQ

+37% YoY +5% QoQ

  • 8% YoY

+6% YoY

1,176 1,133 1,138 1,225 1,379 1,384 1,350 1,149 1,371 1,176 1,133 1,090 1,195 1,243 1,222 1,217 1,057 1,227 1,215 1,158 791 828 987 1,003 1,028 822 1,006 1,078 940 980 1,060 1,142 1,147 1,100 999 1,129 499 446 468 570 581 641 667 471 629 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18 HDPE (FILM) SEA LLDPE CFR SEA LDPE CFR SE Asia MEG ACP Naphtha MOPJ

32% 26% 28% 29% 32% 29% 26% 29% 29%

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/60 9M/61 Olefins 95% 89% 96% 103% 101% 104% 98% 93% 101% HDPE 120% 114% 110% 119% 107% 119% 113% 114% 113% LLDPE 106% 83% 117% 115% 99% 92% 76% 102% 89% LDPE 118% 125% 118% 106% 108% 112% 107% 120% 109% Total PE 116% 108% 113% 115% 105% 107% 97% 112% 103% MEG 67% 90% 111% 110% 111% 91% 95% 89% 99%

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SLIDE 28

88 101 117 119 110 108 110 307 328

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/60 9M/61 56% 57% 53% 54% 52% 48% 47% 55% 49% 23% 23% 25% 26% 29% 35% 36% 24% 33% 20% 20% 22% 20% 19% 17% 18% 21% 18%

401 405 435 421 433 470 486 1,241 1,389

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/60 9M/61 HDPE LLDPE LDPE

149 131 130 152 122 123 106 409 352

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/60 9M/61 61% 67% 53% 57% 57% 56% 58% 60% 57% 28% 24% 28% 32% 33% 32% 29% 27% 31% 12% 9% 19% 11% 11% 11% 13% 13% 12%

981 900 1,026 1,098 1,048 1,098 1,036 2,906 3,182

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/60 9M/61 Ethane Other Gas Naphtha

Olefins and Derivatives Performance

28

Olefins Intake (Ktons) PE Sales Volume (Ktons) Olefins Sales Volume (Ktons) MEG Sales Volume (Ktons)

+1% YoY

  • 6% QoQ

+12% YoY +4% QoQ

  • 18% YoY
  • 14% QoQ
  • 7% YoY

+1% QoQ

95% 89% 96% 103% 101% 104% 98% 93% 101% Olefins U-Rate MEG U-Rate PE U-Rate

116% 108% 113% 115% 105% 107% 97% 112% 103%

+9% YoY

  • 14% YoY

+12% YoY +7% YoY

67% 90% 111% 110% 111% 91% 95% 89% 99%

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SLIDE 29

39% 36% 27% 29% 30% 33% 29% 33% 31% 61% 64% 73% 71% 70% 67% 71% 67% 69%

109 121 141 138 145 138 144 371 426

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18 BPA Phenol

301 322 307 261 392 475 437 310 434

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18

95 91 120 288 370 462 484 102 439

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18

Phenol Performance

29

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

BPA-Phenol

Phenol-BZ

+2% YoY +5% QoQ

+303% YoY +5% QoQ +42% YoY

  • 8% QoQ

+331% YoY +40% YoY

+15% YoY

U-Rate Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18 Phenol 84% 101% 114% 115% 118% 112% 118% 100% 116% BPA 118% 116% 99% 108% 114% 120% 119% 111% 117% 11% 7% 9% 17% 18% 23% 19% 9% 20%

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 9M/17 9M/18