GDP DRIVES US TOWARD FURTHER SUCCESS 2Q18 Highlight Performance - PowerPoint PPT Presentation

GDP DRIVES US TOWARD FURTHER SUCCESS

2Q18 Highlight Performance by Business Financial Performance Strategic Direction 2

Financial Highlight: 2Q18 & 1H18 Performance Thanks to better products yield and firmed GIM vs high level of premium over dubai Overview of Business 64 72 68 51 Dubai (Avg.) 50 2Q18 1H18 Unit: $/bbl TA (1Q17) Crude run KBD 194 213 210 155 211 1% 1% Net Sales QoQ 8% YoY 45% (net excise tax) YoY 31% Net Sales 125,855 29% 29% 86,796 (net excise tax) 60,488 65,367 125,855 49,930 65,367 MB Unit: MB MB 70% 70% Market GIM ($/bbl) 13.58 14.08 13.86 14.33 13.96 Net Stock G/(L)($/bbl) (1.94) 0.34 3.61 (0.20) 1.97 Acct. GIM ($/bbl) 11.64 14.42 17.47 14.13 15.93 7% QoQ 33% YoY 73% 8% EBITDA EBITDA YoY 93% Unit: MB 12,551 7,162 42% 47% 12,551 7,162 7,255 MB MB 5,389 46% 3,706 50% YoY 89% QoQ 47% Net Income 10% 9% YoY 230% Net income Unit: MB 32% 6,801 40% 4,050 6,801 4,050 3,594 MB MB 2,752 1,228 51% 58% 2Q17 1Q18 2Q18 1H17 1H18 Petroleum Petrochemical Utilities and Others 3

Project Update Gasoline Max. : Better than target, Cat. Cooler construction on schedule Gasoline Maximization Project UHV Catalyst Cooler in RDCC plant C2 ’ s ERU Gasoline Blending Pool ~ 25 M.Litres/month C3’s PRU Unit Poly- gasoline (C8’s) Modification New column RDCC 20 t/hr. to gasoline pool C4 ’ s PNU Plant Unit Heavy Oligomerate (C12+’s) 5 t/hr. to RDCC Modification LCN Naphtha Prime G Benzene rich cut 8 t/h Unit Demin HCN (benzene <0.5 volume%) 27 t/h Gasoline pool ERU – Ethylene Recovery Unit PRU – Propane-Propylene Splitting Unit PNU – Naphtha Oligomer Unit Prime G – Naphtha Hydro-treating Unit CAPEX : ~ 1,320 MB CAPEX : ~ 800 MB IRR : ~ 35% IRR : ~ 80% Benefit :  GIM: 0.3$/bbl COD : Nov.2017 COD : ~ 1Q19 Results: Progress:  Gasoline volume reach 35 mn liters per Construction: Actual 42% vs Plan 42%  month, higher than target of 25 mn liters Main Equipment to be on site in Aug. 18   Benefit to GIM: 0.40$/bbl in 2018 To tie in main equipment in Sept. 18  4

Specialty Petrochemical Products Specialty & Commodity Plus Products to reach 50% in 2018 Sales Volume (SP+CP) Unit: MT 800,000 Joint Venture 0.7 PPE 160 KTA COD Sept. 2017 60% Polyol IRPC A&L PPC 140 KTA COD Dec. 2017 55% IRPC 75% 700,000 IRPC 60% 0.6 50% PPC Rokita 25% Nippon A&L 37% Sumithai 3% 600,000 0.5 30% volume growth mainly from PPE&PPC 500,000 45% 0.4 43% 39% 400,000 35% 34% 0.3 31% 300,000 0.2 22% 200,000 16% 0.1 100,000 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5

Awards & Achievement in 2Q18 IRPC ’ s Achievement “Asian Excellence Awards 2018” “ Asia Responsible Entrepreneurship Awards 2018 ” ● Asia’s Best CEO Social Empowerrment ● Asia’s Best CFO Smile Farm for Chance Project ● Best IR Company (Thailand) by Enterprise Asia by Corporate Governance Asia Social Contribution “ Signing Ceremony ” “ IRPC Provided Safety Traffic Cones ” Signed a memorandum of understanding to join a collaboration “ Public-Private Partnership for in raising awareness and enhancing road Sustainable Plastic and Waste Management ” safety to Department of Empowerment of Persons With Disabilities by Plastic Industry Club under the Federation of Thai Industries, Business Council for Safety traffic cones which is an innovative Sustainable Development (TBCSD), plastic with mixture of natural rubber private sector and civil society Credit Rating Marketing “IRPC join WHA” ‘ Ba1 ’ The Establishment of a Joint Venture Outlook to Positive Share Purchase Agreement from Stable IRPC - Stake holding 40% Standalone Rating: Ba3  Ba2 WHA - Stake holding 60% by Moody ’ s Investors Service 6

2Q18 Highlight Performance by Business Financial Performance Strategic Direction 7

Petroleum Spread Refinery Spread Lube Base Spread - Soften Demand - Higher supply from QoQ ULG 95 - Dubai QoQ 500SN – FO 180 3.5%S Spread - High inventories level in USA and Europe resuming operation after - Higher export volume from China $/TON turnaround in Asia $/bbl - Soften demand QoQ  6% QoQ  12% 556 528 513 16.1 481 14.8 458 14.2 14.4 451 13.7 12.1 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 QoQ - Higher export volume from China Gas oil - Dubai 150 BS – FO 180 3.5%S Spread + Higher demand from ME $/bbl $/TON QoQ  7% QoQ - Unchanged 658 635 579 588 536 544 14.8 14.6 13.9 13.0 11.8 11.4 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 + Lower export volume from ME - Soften demand be awaited for QoQ HSFO - Dubai Asphalt – FO 180 3.5%S Spread QoQ + Higher demand from Korea construction budget approval - Earlier rainy season than usual $/TON $/bbl QoQ  10% QoQ  24% (13) (1.8) (1.4) (28) (38) (3.1) (3.1) (44) (55) (4.4) (4.9) (68) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 8

Petroleum Production Maintained U-Rate at high level and better petroleum yield Crude Intake Lube Base oil & Asphalt Crude Run 194 2 13 210 155 211 (KBD) 83% 8 7 % 84% 65% 86% % U-Rate 90% 9 9 % 98% 72% 98% % U-Rate 6% 6% 14% 14% 14% Others Unit : Mbbl 6% 7% 6% 9% 7% 20% Domestic 22% 3.5 14% 14% 13% Far East 2.7 68% 66% 64% 65% 65% 1.8 Lube Middle East 1.8 1.7 1.7 1.4 32% 33% 32% 34% 32% Sweet Crude 0.9 0.9 0.9 Asphalt 68% 67% 68% 66% 68% Sour Crude 1.7 1.3 0.9 0.8 0.8 2Q17 1Q18 2Q18 1H17 1H18 Premium over 2Q17 1Q18 2Q18 1H17 1H18 1.4 3.4 3.4 1.3 3.4 Dubai ($/bbl) RDCC Refinery % U-Rate 82% 10 5% 104% 60% 105% Unit : Mbbl 24.8 LPG 0.4 18.0 1.1 Ethylene 13% 13% 13% 17% 16% 5.0 4% 3% 4% 3% 3% Propylene 0.2 LPG & 18% 17% 18% 17% 18% 12.6 Others 11.3 12.2 1.6 Benzene Rich 2% 3% 3% Naphtha 9% 2.5 9% 0.2 Gasoline 0.1 0.2 Gasoline 0.5 0.6 29% 30% 32% 1.0 22% 21% 2.6 2.4 HCN 17.5 1.7 1% 12.5 Diesel 3% 7% 7% Diesel 8% 9% 8% 5% 8.8 5% 7.8 8.6 6% 6% 6% Fuel oil 7% 7% Fuel oil 6% 6% 6% 0.4 0.7 0.5 1.3 13% 14% 0.8 11% 11% 11% Fuel Gas 2Q17 1Q18 2Q18 1H17 1H18 2Q17 1Q18 2Q18 . 1H17 1H18 Internal use&Fuel Loss Remark: Excluding internal use quantity 9

Petroleum Group : Sales & GRM Maintained Mkt. GRM:  Gasoline sales volume from gasoline max. project Sales Volume & Revenue Market GRM Sales volume (M.bbl) Crude intake (M.bbl) YoY  30% QoQ - Stable 33.7 YoY  6% 17.6 19.2 19.1 28.0 38.3 25.9 3.6 16.9 16.8 2.8 15.8 Unit : $/bbl Lube Base 1.8 1.8 1.7 5.4 5.3 5.2 30.1 Refinery 23.1 4.6 4.6 15.1 15.0 14.1 1.9 1.9 1.8 2Q17 1Q18 2Q18 1H17 1H18 2.5 2.5 Revenue (MB) QoQ  9% YoY  49% YoY  32% 3.4 3.4 3.4 2Q17 1Q18 2Q18 1H17 1H18 2.1 2.1 34,754 42,201 45,934 59,098 88,135 Petroleum 2Q17 1Q18 2Q18 1H17 1H18 30,314 37,556 41,246 51,719 78,802 Refinery Refinery Lube Base Lube Base 4,440 4,645 4,688 7,379 9,333 Sales Distribution  2Q18 Petroleum revenue was Bt 46 bn  QoQ : 9% increase from price increase 1Q18 2Q18  YoY : 32% increase,26% price increase & 6% volume increase  2Q18 market GRM was $5.2/bbl  QoQ : $0.2/bbl decrease as lower asphalt spread during Rainy Season Export Export Local 37% Local  YoY : $0.6/bbl increase as higher Diesel spread vs lower 42% 58% 63% Asphalt and Lube Base Oil spread  1H18 : Petroleum revenue was Bt 88 bn  YoY : 49% increase,19% price increase & 30% volume increase  1H18 Market GRM was $5.3/bbl YoY : $0.7/bbl increase as higher Diesel spread versus lower  Top 3 Export Destinations in 2Q18 : Singapore, Malaysia, Cambodia, respectively Asphalt and Lube Base Oil spread 10

Petrochemical Spread HDPE-Ethylene – Naphtha PP-Propylene – Naphtha - Higher supply from resuming - Lower black pipe demand from China QoQ QoQ Spread Spread operation after turnaround in S.E.A. - Soften demand during the month of - Soften demand during the month of Ramadan $/TON $/TON Ramadan QoQ  2% QoQ  5% Olefins Ethylene-NP HDPE-Ethylene Propylene-NP PP-Propylene 1,026 1,008 910 830 823 762 693 679 663 661 660 621 367 427 284 201 171 286 228 287 356 298 365 363 659 622 626 591 581 544 435 406 362 323 296 258 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 - Higher supply from resuming - Lower demand in Asia for QoQ QoQ MX – Naphtha Spread Toluene – Naphtha Spread operation after turnaround in Gasoline Blending N.E.A. $/TON $/TON Aromatics QoQ  16% QoQ  10% 202 200 192 182 182 170 164 159 137 114 115 109 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 ABS – Naphtha Spread QoQ PS – Naphtha Spread QoQ - Higher utilization rate - High production volume from China - Soften demand from China $/TON - Weaken demand $/TON Styrenics QoQ  3% QoQ  5% 1,428 1,382 1,377 1,379 1,353 1,226 1,029 977 998 945 878 905 11 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18