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

GDP

DRIVES US TOWARD FURTHER SUCCESS

Performance by Business Financial Performance Strategic Direction 2Q18 Highlight

2

Financial Highlight: 2Q18 & 1H18 Performance

Thanks to better products yield and firmed GIM vs high level of premium over dubai

32% 58% 10%

49,930 60,488 65,367 86,796 125,855

QoQ 8% YoY 31%

Overview of Business

Net Sales

(net excise tax)

Dubai (Avg.)

Unit: $/bbl

Net Income

Unit: MB Unit: MB YoY 230% QoQ 47%

EBITDA

Unit: MB

3,706 5,389 7,162 7,255 12,551

QoQ 33% YoY 93% Petroleum Petrochemical Utilities and Others

Net Sales

(net excise tax)

EBITDA Net income

1H18

42% 50% 8% 70% 29% 1%

125,855 MB 12,551 MB

1,228 2,752 4,050 3,594 6,801 2Q17 1Q18 2Q18 1H17 1H18

6,801 MB Market GIM ($/bbl) 13.58 13.86 14.08

50 64 72 51 68 Crude run KBD 194 213 210

• Acct. GIM ($/bbl)

11.64 17.47 14.42

3

2Q18

47% 46% 7% 70% 29% 1%

65,367 MB 7,162 MB

40% 51% 9%

4,050 MB Net Stock G/(L)($/bbl) (1.94) 3.61 0.34

YoY 89% YoY 73% YoY 45%

155 211

TA (1Q17)

14.33 14.13 (0.20) 13.96 15.93 1.97

4

Project Update

Gasoline Max. : Better than target, Cat. Cooler construction on schedule

Gasoline Maximization Project UHV Catalyst Cooler in RDCC plant CAPEX : ~ 800 MB IRR : ~ 80% COD : Nov.2017 Results:

• Gasoline volume reach 35 mn liters per

month, higher than target of 25 mn liters

• Benefit to GIM: 0.40$/bbl in 2018

Demin

RDCC Plant ERU PRU Unit PNU Unit Prime G Unit

New column

Gasoline Blending Pool

~ 25 M.Litres/month

C2’s C3’s C4’s Naphtha

Modification Modification

Poly-gasoline (C8’s) 20 t/hr. to gasoline pool Heavy Oligomerate (C12+’s) 5 t/hr. to RDCC HCN (benzene <0.5 volume%) 27 t/h Gasoline pool Benzene rich cut 8 t/h LCN ERU – Ethylene Recovery Unit PRU – Propane-Propylene Splitting Unit PNU – Naphtha Oligomer Unit Prime G – Naphtha Hydro-treating Unit

CAPEX : ~ 1,320 MB IRR : ~ 35% Benefit :  GIM: 0.3$/bbl COD : ~ 1Q19 Progress:

• Construction: Actual 42% vs Plan 42%
• Main Equipment to be on site in Aug. 18
• To tie in main equipment in Sept. 18

16% 22% 31% 34% 35% 39% 43% 45% 50% 55% 60%

0.1 0.2 0.3 0.4 0.5 0.6 0.7

100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5

Specialty Petrochemical Products

Specialty & Commodity Plus Products to reach 50% in 2018

IRPC 75% PPC Rokita 25%

IRPC A&L

IRPC 60% Nippon A&L 37%

Sumithai 3%

Joint Venture Polyol Sales Volume (SP+CP) Unit: MT PPE PPC

160 KTA 140 KTA COD Dec. 2017 COD Sept. 2017

30% volume growth mainly from PPE&PPC

Awards & Achievement in 2Q18

“Signing Ceremony”

Signed a memorandum of understanding to join a collaboration “Public-Private Partnership for Sustainable Plastic and Waste Management” by Plastic Industry Club under the Federation

• f Thai Industries, Business Council for

Sustainable Development (TBCSD), private sector and civil society

“Asian Excellence Awards 2018”

“IRPC join WHA”

The Establishment of a Joint Venture Share Purchase Agreement

IRPC - Stake holding 40% WHA - Stake holding 60%

“Asia Responsible Entrepreneurship Awards 2018” Social Empowerrment Smile Farm for Chance Project

by Enterprise Asia

6

IRPC’s Achievement Marketing Credit Rating

‘Ba1’

Outlook to Positive from Stable

Standalone Rating: Ba3 Ba2 by Moody’s Investors Service

• Asia’s Best CEO
• Asia’s Best CFO
• Best IR

Company (Thailand) by Corporate Governance Asia

Social Contribution

“IRPC Provided Safety Traffic Cones”

in raising awareness and enhancing road safety to Department of Empowerment

• f Persons With Disabilities

Safety traffic cones which is an innovative plastic with mixture of natural rubber

Performance by Business Financial Performance Strategic Direction 2Q18 Highlight

7

Petroleum Spread

8 + Lower export volume from ME + Higher demand from Korea 11.8 11.4 13.9 13.0 14.8 14.6

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

• Soften Demand
• High inventories level in USA and Europe
• Higher export volume from China

14.8 14.2 16.1 14.4 13.7 12.1

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

(3.1) (1.8) (1.4) (3.1) (4.9) (4.4)

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

500SN – FO 180 3.5%S Spread 150 BS – FO 180 3.5%S Spread Asphalt – FO 180 3.5%S Spread $/bbl $/bbl $/bbl

Lube Base Spread Refinery Spread

Gas oil - Dubai ULG 95 - Dubai HSFO - Dubai

(13) (38) (28) (44) (55) (68)

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

635 658 579 536 588 544

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

451 556 528 458 513 481

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

QoQ  6% QoQ  10% QoQ  7% QoQ - Unchanged QoQ  24%

• Higher export volume from China

+ Higher demand from ME QoQ  12%

• Soften demand be awaited for

construction budget approval

• Earlier rainy season than usual

QoQ QoQ QoQ QoQ QoQ $/TON $/TON $/TON

• Higher supply from

resuming operation after turnaround in Asia

• Soften demand

194 213 210 155 211

0.8 0.9 0.8 1.3 1.7 0.9 0.9 0.9 1.4 1.8 1.7 1.8 1.7 2.7 3.5 2Q17 1Q18 2Q18 1H17 1H18

Lube Asphalt 13% 11% 11% 14% 11% 7% 6% 6% 7% 6% 5% 6% 6% 5% 6% 7% 8% 9% 7% 8% 22% 3% 21% 1% 9% 29% 32% 9% 30% 2% 3% 3% 17% 18% 17% 18% 18% 3% 4% 3% 3% 4% 17% 13% 13% 16% 13%

2Q17 1Q18 2Q18 . 1H17 1H18

LPG Ethylene Propylene Benzene Rich Gasoline HCN Diesel Fuel oil Fuel Gas Internal use&Fuel Loss

68% 67% 68% 66% 68% 32% 33% 32% 34% 32% 2Q17 1Q18 2Q18 1H17 1H18

Sweet Crude Sour Crude

Petroleum Production

Maintained U-Rate at high level and better petroleum yield

1.4 3.4 3.4 1.3 3.4 90% 99% 98% 72% 98% % U-Rate

Unit : Mbbl

Unit : Mbbl

LPG & Others Naphtha Gasoline Diesel Fuel oil

Remark: Excluding internal use quantity Premium over Dubai ($/bbl)

82% 105% 104% 60% 105% % U-Rate

Crude Intake RDCC Refinery Lube Base oil & Asphalt

83% 87% 84% 65% 86% % U-Rate 0.7 0.4 0.5 1.3 0.8 7.8 8.6 8.8 12.5 17.5 1.7 2.4 2.6 2.5 5.0 1.0 0.6 0.5 1.6 1.1

0.1 0.2 0.2 0.2 0.4

11.3 12.2 12.6 18.0 24.8

2Q17 1Q18 2Q18 1H17 1H18

9

68% 64% 66% 65% 65% 20% 13% 14% 22% 14% 6% 9% 6% 7% 7% 6% 14% 14% 6% 14%

Others Domestic Far East Middle East

Crude Run (KBD)

Petroleum Group : Sales & GRM

Maintained Mkt. GRM:  Gasoline sales volume from gasoline max. project

2.1 3.4 3.4 2.1 3.4 2.5 1.9 1.8 2.5 1.9

4.6 5.4 5.2 4.6 5.3

2Q17 1Q18 2Q18 1H17 1H18 Refinery Lube Base 4,440 4,645 4,688 7,379 9,333 14.1 15.1 15.0 23.1 30.1 1.7 1.8 1.8 2.8 3.6

15.8 16.9 16.8 25.9

2Q17 1Q18 2Q18 1H17 1H18

Lube Base Refinery

30,314 37,556 41,246 51,719 78,802 Refinery 34,754 42,201 45,934 59,098 88,135

Sales Volume & Revenue 17.6 19.2 19.1 28.0 38.3 Crude intake (M.bbl)

Unit : $/bbl

Sales Distribution

Top 3 Export Destinations in 2Q18 : Singapore, Malaysia, Cambodia, respectively

YoY  6% QoQ - Stable

YoY  32% QoQ  9%

Sales volume (M.bbl) Revenue (MB)  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

Asphalt and Lube Base Oil spread

2Q17 1Q18 2Q18 1H17 1H18

Market GRM  2Q18 Petroleum revenue was Bt 46 bn

• QoQ : 9% increase from price increase
• 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

• YoY : $0.6/bbl increase as higher Diesel spread vs lower

Asphalt and Lube Base Oil spread

10

YoY  30%

YoY  49%

Petroleum Lube Base

Local 58% Export 42%

2Q18

Local 63% Export 37%

1Q18

33.7

11

Petrochemical Spread

200 170 159 109 137 115

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

591 544 622 626 659 581 171 286 201 284 367 427

762 830 823 910 1,026 1,008

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Ethylene-NP HDPE-Ethylene

192 202 182 114 182 164

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

1,029 878 977 905 998 945

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

435 296 323 258 406 362 228 365 356 363 287 298

663 661 679 621 693 660

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Propylene-NP PP-Propylene

HDPE-Ethylene –Naphtha Spread PP-Propylene –Naphtha Spread MX – Naphtha Spread Toluene – Naphtha Spread PS –Naphtha Spread ABS –Naphtha Spread

Olefins Styrenics Aromatics

• Lower black pipe demand from China
• Soften demand during the month of

Ramadan

1,382 1,226 1,377 1,353 1,428 1,379

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

QoQ  2% QoQ  5% QoQ  16% QoQ  5% QoQ  3% QoQ  10%

• Higher utilization rate
• Soften demand from China
• Higher supply from resuming
• peration after turnaround in S.E.A.
• Soften demand during the month of

Ramadan QoQ QoQ QoQ QoQ QoQ QoQ

• Lower demand in Asia for

Gasoline Blending $/TON $/TON $/TON $/TON $/TON $/TON

• Higher supply from resuming
• peration after turnaround in

N.E.A.

• High production volume from China
• Weaken demand

95 104 106 143 210 2 4 4 5 8 85 78 87 147 164

182 186 197 296 382

89 73 75 92 148 140 194 196 239 390

229 267 271 331 539

Polyolefins

Petrochemical Group : Production

Improved products yield after resuming operation from PP&PS planned SD in 1Q18

2Q17 1Q18 2Q18 1H17 1H18

95% 91% 93% 74% 92% % U-Rate

93% 87% 88% 80% 88% Polyolefins 96% 96% 100% 69% 98% Olefins

Aromatics & Styrenics Olefins

2Q17 1Q18 2Q18 1H17 1H18

97% 100% 104% 79% 102% % U-Rate

95% 86%

95%

83% 90%

Polystyrenics

107% 107%

109%

88% 108% Styrenics 94% 108%

108%

71% 108% Aromatics

Olefins

Unit : KMT

Remark : - Utilization rate calculated based on main products

• volume excluded internal use

 2Q18: 93% Olefins U-Rate (271 KMT)

• 2% higher U-rate due to 10 day PP planned maintenance

shutdown in 1Q18

Polystyrenics Styrenics Aromatics

 2Q18: 104% Aromatics & Styrenics U-Rate (197 KMT)

• Polystyrenics : Higher U-rate from resuming operation after

PS 14 days planned maintenance shutdown in 1Q18

Unit : KMT

12

Production Volume Production Volume

Petrochemical Group : Sales & PTF

Lower products spread be offset by better products yield after planned SD

160 183 194 274 377 237 272 281 406 553

397 455 475 680 930

2Q17 1Q18 2Q18 1H17 1H18

Olefins & Polyolefins Aromatics & Styrenics

2.9 2.7 2.6 3.3 2.7 5.1 5.0 5.0 5.3 5.0 8.0 7.6 7.6 8.6 7.6

2Q17 1Q18 2Q18 1H17 1H18 Unit : $/bbl Aromatics & Styrenics Olefins & Polyolefins

Sales Volume and Revenue Sales Distribution

Top 5 Export Destinations in 2Q18: Hong Kong, Singapore , Vietnam, Japan, Indonesia

QoQ  4% QoQ  6%

Revenue (MB) 2Q17 1Q18 2Q18 1H17 1H18

YoY  20% YoY  29%

Market PTF ($/bbl)

14,472 17,558 18,649 26,423 36,207 8,361 10,589 11,081 15,159 21,670 6,111 6,969 7,568 11,264 14,537

13 YoY  37% YoY  37%

Petrochem Olefins

Aro& Styrenics

 1H18 : Petrochemical revenue was Bt 36 bn

• YoY : 37% increase from 37% volume increase

 1H18 Market PTF was $7.6/bbl:

• YoY : $1.0/bbl decrease as lower Aromatics spread

 2Q18 : Petrochemical revenue was Bt 19 bn

• QoQ : 6% increase, 2% price increase & 4% volume increase
• YoY : 29% increase,9% price increase & 20% volume increase

 2Q18 Market PTF was $7.6/bbl:

• QoQ : Stable due to better products yield vs lower

Petrochemical spread

• YoY : $0.4/bbl decrease as lower Aromatics spread

Local 54% Export 46%

1Q18

Local 50% Export 50%

2Q18 17.6 19.2 19.1 28.0 38.3 Crude intake (M.bbl)

14

Market & Accounting Gross Integrated Margin

Sustained Market GIM amid weaken products spread

4.6 5.4 5.2 4.6 5.3 8.0 7.6 7.6 8.6 7.6 1.0 1.1 1.1 1.1 1.1

13.6 14.1 13.9 14.3 14.0 2Q17 1Q18 2Q18 1H17 1H18 Petroleum Petrochem Power & Utility

2.0 3.4 3.4 2.2 3.4 2.5 1.9 1.8 2.5 1.9

4.6 5.4 5.2 4.6 5.3 2Q17 1Q18 2Q18 1H17 1H18

Refinery Lube Base Refiery 5.1 5.0 5.0 5.3 5.0 2.9 2.7 2.6 3.3 2.7

8.0 7.6 7.6 8.6 7.6

Olefins Aromatics&Styrenics

13.6 14.1 13.9 14.3 14.0 (1.2) 0.3 3.5 0.6 1.9 (0.8) 0.02 0.1 (0.8) 0.04

11.6 14.4 17.5 14.1 15.9 2Q17 1Q18 2Q18 1H17 1H18 Hedging Stock G/(L) & LCM Market GIM

Accounting GIM Market GIM

Unit: $/bbl Unit: $/bbl

Market GIM by business

Unit: $/bbl

Petrochemical Petroleum Accounting GIM

 2Q18 Acct GIM was $17.5/bbl

• QoQ:  $3.1/bbl from $3.3/bbl higher stock gain vs $0.2/bbl lower
• f market GIM
• YoY:  $5.8/bbl from $5.6/bbl higher stock gain and $0.3/bbl

higher market GIM  1H18 Acct GIM was $15.9/bbl:  $1.8/bbl from 1H17 attributed to $2.1/bbl higher stock gain vs $0.3/bbl lower of market GIM

Market GIM

 2Q18 Market GIM was $13.9/bbl,

• QoQ:  $0.2/bbl due to lower Lube base oil spread
• YoY:  $0.3/bbl as higher petroleum spread vs higher crude

premium over Dubai  1H18 Market GIM was $14.0/bbl:  $0.3/bbl from 1H17 due to higher crude premium over Dubai vs better products yield

Performance by Business Financial Performance Strategic Direction 2Q18 Highlight

15

2Q17 1Q18 2Q18 QoQ YoY 2Q17 1Q18 2Q18 FX avg. 34.47 31.71 32.09 Crude Intake (M.bbl) 17.61 19.18 19.10 Crude Intake (KBD) 194 213 210 Net Sales 49,930 60,488 65,367 8% 31% 82.25 99.45 106.65 Market GIM 8,240 8,569 8,493 (1)% 3% 13.58 14.08 13.86 Stock Gain/(Loss) (706) 195 2,177 1016% 408% (1.16) 0.32 3.55 LCM (6) (1) (6) (500)%

• (0.01) (0.00) (0.01)

Oil Hedging Gain/(Loss) (466) 10 44 340% 109% (0.77) 0.02 0.07 Net Stock Gain/(Loss) (1,178) 204 2,215 987% 288% (1.94) 0.34 3.61 Accounting GIM 7,062 8,773 10,708 22% 52% 11.64 14.42 17.47 OPEX + Selling Exp. (3,786) (3,762) (3,942) (5)% (4)% (6.23) (6.18) (6.43) Other Incomes 429 378 396 5% (8)% 0.71 0.62 0.65 EBITDA 3,706 5,389 7,162 33% 93% 6.12 8.86 11.69 Depreciation (1,919) (2,039) (2,047) (0)% (7)% (3.16) (3.35) (3.34) Cost of Finance (537) (472) (437) 7% 19% (0.88) (0.78) (0.71) FX Gain/(Loss) 52 97 (73) (175)% (240)% 0.09 0.16 (0.12) Impairment Gain/(Loss) 2

• 51
• 2450%
• - 0.08

Investment Gain/(Loss) 117 170 202 19% 73% 0.19 0.28 0.33 Other Expenses (5) 0 (0) (221)% 94% (0.01)

• -

Income Tax (191) (391) (795) (103)% (316)% (0.31) (0.64) (1.30) Net Profit 1,228 2,752 4,050 47% 230% 2.04 4.53 6.61 % Change Unit: MB Unit: $/bbl

16

Financial Highlight: 2Q18 performance

2Q18

47% 46% 7% 70% 29% 1%

65,367 MB 7,162 MB

40% 51% 9%

4,050 MB

Petroleum Petrochemical Utilities and Others

Net Sales

(net excise tax)

EBITDA Net income

1H17 1H18 1H17 1H18 FX avg. 34.88 31.90 Crude Intake (M.bbl) 28.01 38.28 Crude Intake (KBD) 155 211 Net Sales 86,796 125,855 45% 88.84 103.06 Market GIM 14,002 17,062 22% 14.33 13.96 Stock Gain/(Loss) 564 2,372 321% 0.58 1.94 LCM (1) (7) (669)% (0.00) (0.01) Oil Hedging Gain/(Loss) (766) 54 107% (0.78) 0.04 Net Stock Gain/(Loss) (203) 2,420 1292% (0.20) 1.97 Accounting GIM 13,799 19,481 41% 14.13 15.93 OPEX + Selling Exp. (7,289) (7,704) (6)% (7.46) (6.31) Other Incomes 744 774 4% 0.76 0.63 EBITDA 7,255 12,551 73% 7.43 10.25 Depreciation (3,009) (4,086) (36)% (3.08) (3.35) Cost of Finance (1,079) (909) 16% (1.10) (0.74) FX Gain/(Loss) 587 24 (96)% 0.60 0.02 Impairment Gain/(Loss) 238 51

• 0.24

0.04 Investment Gain/(Loss) 212 372 75% 0.21 0.30 Other Expenses (9) (0) 99% (0.01)

• Income Tax

(599) (1,186) (98)% (0.61) (0.97) Net Profit 3,594 6,801 89% 3.68 5.54 Unit: $/bbl % Change Unit: MB

17

Financial Highlight: 1H18 performance

Petroleum Petrochemical Utilities and Others

32% 58% 10%

1H18

42% 50% 8% 70% 29% 1%

125,855 MB 12,551 MB 6,801 MB

Net Sales

(net excise tax)

EBITDA Net income

Operating Net Income: 1Q18 vs 2Q18

Lower operating income due mainly to higher Tax and OPEX & SGA

2,574

2,156 4,371 4,050

179

47 123 187 170 8 81 59

2,156

2,215 51 371

4,050

Operating Net Income: 1Q18 vs 2Q18

Unit: MB

Net Stock Gain

2,752

Net Profit 2Q18

Operating Profit 1Q18

Volume Increase Margin Decrease

• FX. Gain

Decrease Selling

• Exp. +

OPEX Others Stock Gain & Hedging +LCM Depre.

Operating Profit 2Q18

Tax

Tax affected from non-

• perating

item

1Q18 : (2,039) 2Q18 : (2,047)

Sales Qty. (Excl. PTTGC) 1Q18:18.64 Mbbl 2Q18:18.75 Mbbl

1Q18 : (3,755) 2Q18 : (3,942)

18 Non-core land disposal

Operating Net Income: 1H17 vs 1H18

Operating NI improved from higher U-Rate & better product yield vs soften MKT spread

3,564

4,698 7,117 6,801

(174) 204

4,505 1,445 415 563 1,077 356 226

4,698

2,419 51 366

6,801

Operating Net Income: 1H17 vs 1H18

Unit: MB

Net Stock Loss

3,594

• Rev. of

Impair.

Net NI 1H18

Operating NI 1H17

Volume Increase Margin Decrease

• FX. Gain

Decrease Selling

• Exp. +

OPEX Others Stock Gain & Hedging +LCM Depre.

Operating NI 1H18

Tax

Tax affected from non-

• perating

item

1H17 : (3,009) 1H18 : (4,086)

Sales Qty. (Excl. PTTGC) 1H17:28.37 Mbbl 1H18:37.39 Mbbl

1H17 : (7,289) 1H18 : (7,704)

19 Non-core land disposal

128,324 126,421 8,637 9,015 45,438 49,024 2,145 2,350 87,650 88,463 2,378 2,494 55,812 51,892 38,704 43,960

Financial Positions

Improving Financial Positions driven by better performance after projects completion

Maturity of Long-term Debt

Debt Profile Statements of Financial Position Cash Flow

Unit : MB Remark: Long-term debt as at 30 June 2018

Unit: MB

PP&E

Other Non-C/A Cash

184,544

Other Current Liabilities LT Liabilities incl.current port.

Shareholders’ Equity

• Jun. 2018

186,810

• Dec. 2017

Other CA Other Non- Current Liabilities Beginning Cash Ending Cash

Cash Flow from Operating

Unit: MB

Cash Flow from Investing Cash Flow from Financing

Net Debt = 54,142 MB

• Ex. Rate = 33.33 Baht/$

Financial Ratios

< 1.0x

Net D/E CA/CL

20

1,368 3,734 6,357 6,437 17,414 1,333

• 5,000

3,363

• 6,887
• 7,701

7,096 6,357 13,324 17,414 2018 2019 2020 2021 >2021 THB Bond USD Loan THB Loan

Float 73 THB 74 Fixed 27 USD 26 Currency (%) Interest Rate (%)

ST Loan 8% LT Loan (USD) 2% LT Loan (THB) 63% Bond (THB) 27%

0.84 0.56 0.61

2Q17 1Q18 2Q18

0.89 1.02 0.90

2Q17 1Q18 2Q18

Performance by Business Financial Performance Strategic Direction 2Q18 Highlight

21

22

GDP: From Aspiration to Execution

Power Three : 3 Pillars for achieve Top Quartile in 2020

Power of Dig Digital Power of People

Truly embed and live the IRPC DNA Develop next generation of Top 30 leaders Continue to establish lean, fit-for-purpose

• rganization

P

Power of Gr Growth

Maximize aromatics for competitiveness Growth by M&A Everest forever for sustainable growth Drive R&D excellence

G

OPS 4.0 Smart Operation (AI) ISC 4.0 Integrated Supply Chain CCM 4.0 Customer Centric Digital

D

ERP 4.0 ERP Transformation

100

MUSD

100

MUSD

100

MUSD

71 106 5 9 408 567 609 562 1,294 1,375

2,387 2,619 1Q18 2Q18

Everest Project Update

10% better than 1Q18: Lead by Commercial and Operation

23

Unit: MB

EBIT : Everest Project

QoQ:  10%

19 177 120 14 307 975 1,884 1,171 2,474 2,669 4,765

5,006 9,569 1H18 2018 Budget

Benefit from Everest by quarter Yearly Benefit from Everest

• Corp. HR
• Corp. Non- HR

Procurement Commercial ISC Operation

24

Strategic Initiative – Everest Forever (E4E)

To reach 100 MS benefit within 2019

1,870 1,870 1,870 2,456 2,456 2,456 4,736 4,736 4,736 2,029 3,300 3,300

491 498 491

288

2018

498 491

2019

288 498 288

2020+ E4E ISC OPS CCM Corp-Non HR PROC Corp-HR

OHI: Organization Health Index >>

86

1st Quartile OHI

xx

1st Quartile OHI (IL4) (IL4) (EBIT)

‘Maintain top quartile OHI’

Unit: MTHB EBIT 10,300 EBIT 10,300 EBIT 10,300

Target

(100 MS)

25

2 8 10 10 15 6 18 24

50 58

3 2018

> 100

2019 2020

50

11.5

PRO 4.0 OPS 4.0 CCM 4.0 ERP 4.0 ISC 4.0 Unit: MUSD

19 initiatives to be launched in Y2018

Target

Strategic Initiative – IRPC 4.0

To reach 100 MS benefit within 2 years

26

Total 29 initiatives

OPS 4.0

Y2018

CCM 4.0

• SAP revisit (Major fix)
• Reporting & big data analytics
• SRM analytics & dashboard
• Control tower decision making
• Customer industry platform
• Control tower: Logistics & client excellence

modules

• Advance control support system
• Rotating machine PM - Static cycle extension
• Catalyst lifecycle prediction
• Maintenance advanced scheduler
• Crude blending optimization
• Smart operator app & wearable safety device

Y2019

ISC 4.0 PRO 4.0 ERP 4.0

19 initiatives 10 initiatives

E1a - SAP revisit (Quick fix) E2 - Tech function E3a - Data governance P1a - Spend cube analytics P4 - Process workflow re-design P3 - Demand planning (non-HC) I1 - Crude selection I2 - Collaborative asset tech. platform C1 - Advanced pricing algorithm C3 - Big data analytics C4 - End-to-end CRM C5 - B2B portal C6 - Market & competitors intelligence O1 - €KON$ O2 - Mass balance system O3 - Utility demand forecasting O4 - Rotating machine PM (pilot) O9 - Online analyzer P2 - Advance material mgmt.

Master Plan

Strategic Initiative – IRPC 4.0

29 initiatives be included in mater plan during 2018-2019

MARS - Maximum Aromatics

Reformer Benzene 300-500 KTA Paraxylene 1,000-1,300 KTA Naphtha PX Project: Aromatic Complex

Internal use & Export Export

Naphtha Treating unit HCN Toluene, Xylene, HA

Internal use & Export Other Products:

LPG, Raffinate, Raw Hydrogen, Fuel Gas

200 KTA

CAPEX: $1.0 bn - $1.1 bn IRR 14%-16% Petrochemical Yield 17%

Existing + UHV

Petrochemical Yield 27%

>>

Key Rational

• Utilize excess Naphtha /Toluene/Xylene

as feedstock to maximize PX and BZ products

• Cost competitiveness

thru new technology

• Affirmed PX demand growth:

CAGR: 4% - 5%

G

Maximum Aromatic Project : MARS

To increase Petrochemical Yield

COD: 1Q23 Feasibility study and Technology selection Basic Engineer Design Package/FEED Construction

2023 2019 2017 2020 2018

EPC BOD approval

• n CAPEX

Early 2019 BOD final approval on EPC Bidding by mid 2019

27

28

G

 Petrochemical and/or related Petrochemical with synergy value  Why Galaxy :

• Align with aspiration: “Leading Integrated Petrochemical Complex in Asia by 2020”
• Growth Ambition: Invest to deliver targeted EBITDA of

Bt 29 bn within 2020

• Expeditious Success

 3-4 projects under study

M&A under “Galaxy” project

Focus in Petrochemical Industry Investment Rational

29

Leading Integrated Petrochemical Complex in Asia by 2020

Y2016 Y2017 Y2020

• -------------------------- Y2018 – Y2019 -------------------------

Vital enabler to Drive sustainable growth Enhance Competitiveness thru digitization

IRPC Aspiration : EBITDA growth

100-200 M$

Look for exponential growth

UHV

17,430 20,420

UHV

PPC PPE > 29,000 MB

UHV PPE PPC Gasoline Max. Catalyst Cooler 50-100 M$ 50-100 M$ 50-100 M$

Thank You

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