GDP DRIVES US TOWARD FURTHER SUCCESS Y2018 & 4Q18 Highlight - - PowerPoint PPT Presentation

GDP

DRIVES US TOWARD FURTHER SUCCESS

Performance by Business Financial Performance Strategic Direction Y2018 & 4Q18 Highlight

2

45 50 55 60 65 70 75 80 85 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18

3

Key Drivers

Maintained high margin through projects completion amid volatile crude oil price

Dubai Crude Oil Price (avg.) Gross Refining Margin (GRM) Foreign Exchange (avg.) Product to Feed Margin (PTF)

Unit: $/bbl Unit : THB/USD 5.5 4.3 5.9 5.2 5.2 4Q17 3Q18 4Q18 2017 2018 7.8 7.0 7.1 8.3 7.3 4Q17 3Q18 4Q18 2017 2018

Unit: $/bbl Unit: $/bbl

31 32 33 34 35 36 37 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18

53.1 49.8 50.5 59.3 69.4 74.3 67.4 35.29 34.47 33.55 33.11 31.71 32.09 33.15 32.98 53.2 63.9 72.1 34.11 32.48

YoY  7% QoQ  37% YoY - Unchanged YoY  9% QoQ  1% YoY  12%

Financial Highlight: Y2018 & 4Q18 performance

2018 : Maintained high operating income from higher U-Rate despite crude premium increased 4Q18 : Better operating income as RDCC resumption after planned TA in 3Q18

• 4%

83% 21%

58,443 68,831 64,233 197,594 258,919

QoQ 7% YoY 10%

Overview of Business

Net Sales

(net excise tax)

Dubai (Avg.)

Unit: $/bbl

Net Income

Unit: MB Unit: MB YoY 136% QoQ 164%

EBITDA

Unit: MB

6,530 5,258 534 20,420 18,344

QoQ 90% YoY 92% Petroleum Petrochemical Utilities and Others

Net Sales

(net excise tax)

EBITDA Net income

2018

30% 58% 12% 71% 28% 1%

258,919 MB 18,344 MB

2,350 1,632 2,285 8,621 8,859

4,513 2,560

(1,627)

11,354 7,735

4Q17 3Q18 4Q18 2017 2018

7,735 MB Market GIM ($/bbl) 14.33 12.37 14.09

59.3 74.3 67.4 53.2 69.4 Crude run KBD 207 203 208

• Acct. GIM ($/bbl)

17.22 14.10 6.58

4

Net Stock G/(L)($/bbl) 2.89 1.73 (7.51)

YoY 32% YoY 10% YoY 31%

180 208

TA in 1Q17

14.48 13.10 (0.50) 13.60 15.49 1.01

22% 63% 15%

2017

37% 54% 9% 68% 30% 2%

197,594 MB 20,420 MB 11,354 MB

Operating NI

Net Income

5

Project Update : Catalyst Cooler

On schedule : Mechanical completion in Feb 19

Project Objective :

• Crude selection  more heavy crude
• More electricity & steam

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

as of Feb. 2019

: 89% of Target Construction Progress

• Mechanical Completion : Catalyst Cooler

System on 8 Feb 2019.

• Progress : during commissioning process
• COD : ~ 1Q19

Catalyst Cooler

Demin

2018 Actual

Everest+E4E Project Highlight

2018: Everest+E4E contributed 87% of plan

Key Area

Everest

Everest Everest

Unit : MB of EBIT

2018 (Plan) 2017 Actual

Operations Area Commercial Area Integrated Supply Chain Procurement Area Corporate Area - HR Corporate Area – Non HR

$

6

Total Everest

Total Everest + E4E

3,011 4,276 4,736 2,077 1,821 2,456 1,179 1,444 1,870 234 31 211 287 397 275 18 1 19 6,807 7,970 9,569 1,397 1,157

9,367 10,726 Everest Forever (E4E) 87% of Plan

10 12 14 2016 2017 2018

14 plants in 2018 vs 12 plants in 2017 : 2 plants

0.45% 0.39%

Total Recordable Injuries Rate (TRIR)* at 0.39% in 2018 : 0.06%

0.58% 2016 2017 2018

Achievement in 2018

• Moody’s Rating affirms at

‘Ba1’ Outlook: Stable  Positive Improving Operating Performance

• Standard & Poor’s Ratings affirms at

‘BB+’ Outlook: Stable  Positive Improving Operating Performance

• Fitch Ratings affirms at

‘A-(tha)’ Outlook Stable Zero Unplanned Shutdown Plant Safety Improvement Credit Rating Marketing

Energy Intensity Index (EII) at 89% in 2018 : 1.40%

2016 2018 90.40% 89.00% 2017 93.89% Efficient Energy Usage Management Investment in Plastic Product E-Commerce Business

• IRPC Join Guangzhao Saiju

Performance Polymer Ltd. in the People’s Republic of China (PRC)

• Registered iPolymer Co., Ltd

IRPC 55% GZSJ 45%

Total Recordable Injuries Case: TRIC x 200,000 *TRIR = Working Hour

7

8

received outstanding plant management Awards and Recognition in 2018

Dow Jones Sustainability Indices (DJSI) Member For the fifth consecutive year, with the highest score By SAM

IRPC’s Achievement

Social Contribution Innovation

The Prime Minister's Industry Award 2018 By Ministry of Industry Sustainability Report

Award 2018 “Excellent Level” By The Stock Exchange

• f Thailand

SET Awards 2018 Outstanding Innovative Company Awards “Convert HDPE to Specialty Pipe” By The Stock Exchange

• f Thailand (SET) in collaboration with the

Money and Banking Magazine

Thailand Quality Class Award 2018 Thailand Quality Class : TQC By Thailand Productivity Institute, a network institution under the Ministry of Industry “Lumsaiyong Model”

“Prosthetics Project”

Performance by Business Financial Performance Strategic Direction Y2018 & 4Q18 Highlight

9

Petroleum Spread

10

• Soften demand in Asia

11.8 11.4 13.9 13.0 14.8 14.6 14.4 14.8 12.5 14.6

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

• Oversupply result in higher Gasoline

inventory in U.S. and Europe

• Higher export volume from China

14.8 14.2 16.1 14.4 13.7 12.1 11.6 4.7 14.9 10.5

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

(3.1) (1.8) (1.4) (3.1) (4.9) (4.4) (2.5) 1.4 (2.3) (2.6)

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

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) (41) (20) (31) (46)

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

635 658 579 536 588 544 471 471 602 518

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

451 556 528 458 513 481 417 375 498 447

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

QoQ  59% YoY  10% YoY  13% YoY  14% YoY  17% YoY  48% + Higher Global demand + Lower export volume from China YoY  30%

• Soften demand as a decrease
• f road construction project

QoQ  3% QoQ  156% QoQ  10% QoQ -Stable QoQ  51% YoY YoY YoY YoY YoY $/TON $/TON $/TON

• Lower import from China as

Yuan depreciation against USD

15.0 15.3 15.4 52.4 60.8 1.8 1.7 1.7 6.4 7.0

16.8 17.0 17.2 58.8 67.8

4Q17 3Q18 4Q18 2017 2018 Lube Base Refinery 207 203 208 180 208 2.6 2.8 3.2 2.1 3.2 1.9 2.3 29.5 35.0 6.2 9.9 5.1 3.0 1.8 2.3 6.4 7.0 2017 2018 Lube Base Oil LPG & Other Naphtha & Reformate Gasoline Diesel & Jet Oil Fuel Oil 3.8 2.9 4.4 3.1 3.5 1.8 1.5 1.6 2.1 1.7 5.5 4.3 5.9 5.2 5.2 4Q17 3Q18 4Q18 2017 2018 Lube Base Refinery 4Q17 3Q18 4Q18 2017 2018 11

Petroleum Group

2018: Higher crude run resulted in higher petroleum sales

4Q18 : Better product yield after RDCC plant resumed its operation leading to higher MKT GRM

Crude Intake GRM Sales Volume & Revenue Production

68% 59% 69% 67% 66% 32% 41% 31% 33% 34% 4Q17 3Q18 4Q18 2017 2018 Sweet Crude Sour Crude 96% 94% 97% 84% 97% % U-Rate

Premium over Dubai ($/bbl)

64% 57% 66% 65% 63% 14% 21% 12% 18% 15% 9% 9% 8% 7% 8% 13% 13% 14% 10% 14% Others Domestic Far East Middle East Crude Run (KBD) 4,404 4,915 4,981 16,110 19,229 36,243 43,998 40,924 119,015 163,724 Refinery 40,647 48,913 45,905 135,125 182,953 YoY  2% QoQ  1% YoY  13% QoQ  6% Revenue YoY  15% YoY  35% Petroleum Lube Base Crude intake (Mbbl) Unit : $/bbl Unit : Mbbl Unit : Mbbl 0.5 0.9 0.5 8.4 8.5 8.9 2.0 2.3 2.6 1.4 1.0 0.9 0.7 0.5 0.6 1.8 1.7 1.7 4Q17 3Q18 4Q18 15.3 59.6 14.8 14.9 50.9 19.1 18.7 19.1 65.5 76.1 Sales Volume Unit : MB YoY  0.4% QoQ  2% YoY  16% YoY  3% QoQ  3% YoY  17% YoY  7% QoQ  37% YoY - Unchanged

1,029 878 977 905 998 945 898 807 947 912

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

1,382 1,226 1,377 1,353 1,428 1,379 1,248 1,032 1,334 1,272

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 12

Petrochemical Spread

200 170 159 109 137 115 121 119 159 123

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

591 544 622 626 659 581 550 306 596 526 171 286 201 284 367 427 267 389 235 360

762 830 823 910 1,026 1,008 817 695 831 886

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 Ethylene-NP HDPE-Ethylene

192 202 182 114 182 164 217 219 172 196

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

435 296 323 258 406 362 361 369 328 375 228 365 356 363 287 298 256 272 328 278

663 661 679 621 693 660 617 641 656 653

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 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

+ Continuously increasing demand from pipe production especially China

QoQ  15% QoQ  4% QoQ  2% QoQ  10% QoQ  17% QoQ  1% YoY  7% YoY  23% YoY  5% YoY - Stable YoY  14% YoY  4%

• Soften demand from China as the

U.S. – China trade war concerns + Decrease addition supply

• Trade War : between the U.S. and

China YoY

YoY YoY YoY YoY YoY

• Soften demand following lower

gasoline demand $/TON $/TON $/TON $/TON $/TON $/TON + Higher demand to be feedstock for PX

• Weaken demand from trade

war (U.S. VS China)

• “Single use plastic” Ban

13

Petrochemical Group

2018: dropped PTF as the decline in petchem. spread vs better product yield after projects completion 4Q18 : Maintained high PTF though weaken products spread

Production PTF Sales Volume and Revenue

172 176 176 631 728 276 275 278 952 1,107 448 451 454 1,583 1,835 4Q17 3Q18 4Q18 2017 2018 Olefins & Polyolefins Aromatics & Styrenics QoQ  1% QoQ  8% Revenue (MB) 4Q17 3Q18 4Q18 2017 2018 YoY  1% YoY  2% 17,054 19,058 17,475 59,728 72,740 10,342 11,495 10,815 35,044 43,980 6,712 7,563 6,660 24,684 28,760 YoY  16% YoY  22% Petrochem Olefins Aromaitcs & Styrenics Unit : KMT

 2018 : Petrochemical revenue was Bt 73 bn

• YoY : 22% increase from 6% price increase & 16% volume increase

(major TA in 1Q17)  2018 Market PTF was $7.3/bbl:

• YoY : $0.9/bbl decrease as lower products spread

 4Q18 : Petrochemical revenue was Bt 17 bn

• QoQ : 8% decrease from 9% price decrease vs 1% vol. increase
• YoY : 2% increase from 1% price increase & 1% volume increase

 4Q18 Market PTF was $7.1/bbl:

• QoQ : $0.1/bbl increase as better sales performance despite soften

products spread

• YoY : $0.7/bbl decrease as lower products spread

2.7 2.7 2.6 3.0 2.6 5.1 4.3 4.5 5.2 4.7 7.8 7.0 7.1 8.3 7.3 4Q17 3Q18 4Q18 2017 2018 Olefins & Polyolefins Aromatics & Styrenics Crude intake (Mbbl) Unit : $/bbl 97 87 103 350 400 3 6 5 12 19 84 86 88 313 338 88 62 76 317 295 199 202 215 600 807 471 443 488 1,591 1,860 4Q17 3Q18 4Q18 2017 2018 Polyolefins Olefins Polystyrenics Styrenics Aromatics Unit : KMT 19.1 18.7 19.1 65.5 76.1 Sales Volume Unit : MB YoY  4% QoQ  10% YoY  17% YoY  9% QoQ  1% YoY  12%

437 517 507 1,629 1,947 251 279 284 916 1,034 54 64 62 196 245

742 860 853 2,741 3,226 4Q17 3Q18 4Q18 2017 2018 Other Steam Electricity 14

Power & Utility

2018: Increasing revenue of Power & UT resulted from high production vol. after major TA 4Q18 : Higher U-Rate QoQ due to RDCC & Hyvahl shutdown during 3Q18

Utilization Rate GIM Revenue

QoQ  1% YoY  15% YoY  18%

 2018 U-Rate of Electricity was 79%;  4% 2018 U-Rate of Steam was 79%;  6%

• YoY : increase from higher production volume after major TA in 1Q17

 2018 : Power & Utility revenue was 3,226 MB

• YoY : 18% increase from higher U-Rate

 4Q18 U-Rate of Electricity was 80%;  4% 4Q18 U-Rate of Steam was 83%;  7%

• QoQ : increase from lower usage of both electricity and steam amid the

RDCC & Hyvahl planned shutdown during 3Q18  4Q18 : Power & Utility revenue was 853 MB

• QoQ : 1% decrease from 1% vol. decrease
• YoY : 15% increase owing to planned maintenance of power plant in

4Q17

1.0 1.1 1.1 1.0 1.1 4Q17 3Q18 4Q18 2017 2018 Power & Utility Unit : $/bbl

Unit : MB

76% 76% 80% 75% 79% 4Q17 3Q18 4Q18 2017 2018 Electricity 79% 76% 83% 73% 79% 4Q17 3Q18 4Q18 2017 2018 Steam YoY  10% QoQ - Unchanged YoY  10% YoY  4% QoQ  7% YoY  6% YoY  4% QoQ  4% YoY  4%

2.7 2.7 2.6 3.0 2.6 5.1 4.3 4.5 5.2 4.7 7.8 7.0 7.1 8.3 7.3 Aromatics&Styrenics Olefins 14.3 12.4 14.1 14.5 13.6 3.3 1.6 (7.4) 1.7 (0.5) (0.4) 0.1 (0.1) (0.7) 0.0 17.2 14.1 6.6 15.5 13.1 Market GIM Stk G/(L) & LCM Hedging 5.5 4.3 5.9 5.2 5.2 7.8 7.0 7.1 8.3 7.3 1.0 1.1 1.1 1.0 1.1 14.3 12.4 14.1 14.5 13.6 Petroleum Petrochem Power & Utility 3.8 2.9 4.4 3.1 3.5 1.8 1.5 1.6 2.1 1.7 5.5 4.3 5.9 5.2 5.2 4Q17 3Q18 4Q18 2017 2018 Refinery Lube Base 3,493 2,681 3,732 11,663 12,858 4,911 4,312 4,469 18,443 18,085 632 674 678 2,264 2,663 9,036 7,667 8,879 32,370 33,607 4Q17 3Q18 4Q18 2017 2018 9,036 7,667 8,879 32,370 33,607 2,059 1,017 (4,650) 3,720 (1,268) (231) 54 (78) (1,452) 30 10,864 8,738 4,151 34,638 32,370 4Q17 3Q18 4Q18 2017 2018

Market GIM

Unit: $/bbl

Accounting GIM

Unit: $/bbl Unit: MB

Market GIM by business

Unit: $/bbl Petrochemical Petroleum Unit: MB

15

Gross Integrated Margin (GIM)

2018: Higher crude premium & stock loss caused lower Acc. GIM 4Q18: High stock loss as a sharply decline in crude oil price VS better MKT GIM

YoY  1% QoQ  14% YoY  6% YoY  62% YoY  15% QoQ  53%

Accounting GIM

 2018 Acct GIM was $13.1/bbl:  $2.4/bbl from 2017 due to $1.5 higher stock loss and $0.9/bbl lower of market GIM  4Q18 Acct GIM was $6.6/bbl

• QoQ:  $7.5/bbl due to $9.2/bbl higher stock loss VS $1.7/bbl higher market GIM
• YoY:  $10.6/bbl due to $10.4/bbl higher stock loss and $0.2/bbl lower market GIM

Market GIM

 2018 Market GIM was $13.6/bbl:  $0.9/bbl from 2017

• Due to higher crude premium and lower products spread offsetting by better

product yield after the COD of projects  4Q18 Market GIM was $14.1/bbl,

• QoQ:  $1.7/bbl due to resuming operation of Hyvahl and RDCC units
• YoY:  $0.2/bbl due to higher crude premium VS better product yield

YoY  2% QoQ  16% YoY  4% YoY  62% YoY  7% QoQ  52%

Performance by Business Financial Performance Strategic Direction Y2018 & 4Q18 Highlight

16

2017 2018 2017 2018 Net Sales 197,594 258,919 31% 88.37 104.82 Market GIM 32,370 33,607 4% 14.48 13.60 Stock Gain/(Loss) 3,720 (420) (111)% 1.66 (0.17) LCM 0 (848)

• 0.00 (0.34)

Oil Hedging Gain/(Loss) (1,452) 30 102% (0.65) 0.01 Net Stock Gain/(Loss) 2,268 (1,238) (155)% 1.01 (0.50) Accounting GIM 34,638 32,370 (7)% 15.49 13.10 OPEX + Selling Exp. (15,641) (15,604) 0% (7.00) (6.32) Other Incomes 1,423 1,577 11% 0.64 0.64 EBITDA 20,420 18,344 (10)% 9.14 7.42 Depreciation (7,062) (8,237) (17)% (3.16) (3.33) Cost of Finance (1,983) (2,227) (12)% (0.89) (0.90) FX Gain/(Loss) 764 68 (91)% 0.34 0.03 Impairment Gain/(Loss) 832 296

• 0.37 0.12

Investment Gain/(Loss) 577 680 18% 0.25 0.27 Other Expenses (7) (8) (14)% (0.00)

• Income Tax

(2,181) (1,147) 47% (0.98) (0.46) Net Profit 11,354 7,735 (32)% 5.07 3.14 Unit: $/bbl % Change Unit: MB

17

Financial Highlight: 2018 performance

• 4%

83% 21%

2018

30% 58% 12% 71% 28% 1%

258,919 MB 18,344 MB 7,735 MB

Net Sales

(net excise tax)

EBITDA Net income

Petroleum Petrochemical Utilities and Others

4Q17 3Q18 4Q18 QoQ YoY 4Q17 3Q18 4Q18 Net Sales 58,443 68,831 64,233 (7)% 10% 92.66 111.15 102.02 Market GIM 9,036 7,667 8,879 16% (2)% 14.33 12.37 14.09 Stock Gain/(Loss) 2,058 1,017 (3,809) (475)% (285)% 3.26 1.64 (6.05) LCM 1

• (841)
• 0.00
• (1.34)

Oil Hedging Gain/(Loss) (231) 54 (78) (244)% 66% (0.37) 0.09 (0.12) Net Stock Gain/(Loss) 1,828 1,070 (4,728) (542)% (359)% 2.90 1.73 (7.51) Accounting GIM 10,864 8,738 4,151 (52)% (62)% 17.22 14.10 6.58 OPEX + Selling Exp. (4,637) (3,850) (4,050) (5)% 13% (7.35) (6.22) (6.43) Other Incomes 303 371 432 16% 43% 0.48 0.60 0.69 EBITDA 6,530 5,258 534 (90)% (92)% 10.35 8.48 0.84 Depreciation (2,024) (2,046) (2,105) (3)% (4)% (3.21) (3.30) (3.34) Cost of Finance (194) (500) (818) (64)% (322)% (0.31) (0.81) (1.30) FX Gain/(Loss) 87 57 (14) (124)% (116)% 0.14 0.09 (0.02) Impairment Gain/(Loss) 594 (5) 250

• (58)%

0.94 (0.01) 0.40 Investment Gain/(Loss) 256 203 105 (48)% (59)% 0.41 0.33 0.17 Other Expenses 2 (2) (6) (167)% (388)% 0.00 (0.00) (0.01) Income Tax (736) (395) 435 210% 159% (1.17) (0.64) 0.69 Net Profit 4,513 2,560 (1,627) (164)% (136)% 7.15 4.12 (2.58)

Unit: $/bbl

Unit: MB % Change

18

Financial Highlight: 4Q18 performance

4Q18

• 43%

41% 16% 72% 27% 1%

64,233 MB 534 MB

• 163%

33% 31%

(1,627) MB

Net Sales

(net excise tax)

EBITDA Net income

Petroleum Petrochemical Utilities and Others

11,354 8,859

69 5,162 364 1,619 1,510 38 669 843 1,890 3,227 2,960 1,300 1,706 1,065 59

8,621 7,735

19

Operating Net Income: 2017 vs 2018

Increasing U-Rate plus product yield improvement to counter with high crude premium

Uncontrolled Controlled

Operating Income  3% 11,354 7,735 8,621 8,859

Unit: MB

Net Income 2018 (effective Tax rate = 14%) Net Income 2017 (effective tax rate = 17%) Volume Increase Margin Increase Income Tax Decrease OPEX + Selling Exp. Others (Depre/ FX loan/ Take quity) Stock Gain & Hedging +LCM

• FX. Effect

Non Operating Items Operating Income 2017 Non Operating Items Operating Income 2018 Crude Premium Stock Loss & Hedging +LCM Fuel Loss & Internal Used Controllable UHV+ PPE+ PPC Everest + E4E Fuel Loss & Internal Used

20

Operating Net Income: 3Q18 vs 4Q18

Operating NI improvement driven by the resumption of RDCC after planned shutdown in 3Q18

Operating Income  40% 2,560 (1,627) 1,632 2,285

Unit: MB

2,560 2,285

525 91 102 26 471 297

• 928

267 32 200 282 78 130

1,632

Net Income 4Q18 (Tax rate = 20%) Net Income 3Q18 (effective tax rate = 13%) Volume Increase Margin Increase Income Tax Increase OPEX + Selling Exp. Others Stock Gain & Hedging +LCM

• FX. Effect

Non Operating Items Operating Income 3Q18 Non Operating Items Operating Income 4Q18 Crude Premium Stock Loss & Hedging +LCM Fuel Loss & Internal Used UHV +PPE +PPC Everest + E4E

(1,627)

Controlled Fuel Loss & Internal Used Controllable

3,782

Uncontrolled

128,324 125,965 8,637 9,852 45,438 44,291 2,145 2,338 87,650 87,380 2,378 2,609 55,812 50,665 38,704 41,792 0.96 1.00 0.95 4Q17 3Q18 4Q18 0.96 0.95 2017 2018 0.65 0.69 0.63 4Q17 3Q18 4Q18 0.65 0.63 2017 2018 3,735 6,360 6,439 6,439 10,980

• 1,939
• 1,293

3,231 3,364

• 6,887
• 7,099

8,298 13,326 7,731 14,211 2019 2020 2021 2022 >2023 THB Bond USD Loan THB Loan

ST Loan 12% LT Loan (USD) 11% LT Loan (THB) 59% Bond (THB) 18%

Financial Position

Lower net debt due to high operating cash flow and less CAPEX

Maturity of Long-term Debt

Debt Profile Statements of Financial Position Cash Flow

Unit : MB Remark: Long-term debt as at 31 Dec 2018 Unit: MB PP&E Other Non-C/A Cash Other Current Liabilities LT Liabilities incl. current port. Shareholders’ Equity

• Dec. 2018
• Dec. 2017

Other CA Other Non- Current Liabilities Beginning Cash 1 Jan 2018 Ending Cash 31 Dec 2018 Cash Flow from Operating Unit: MB Cash Flow from Investing Cash Flow from Financing

Net Debt = 55,028 MB

• Ex. Rate = 32.61 Baht/$

Financial Ratios

< 1.0x

Net D/E CA/CL

21 184,544 182,446

1%

Interest Rate Currency Float 82% THB 62% Fixed 18% USD 38%

Performance by Business Financial Performance Strategic Direction Y2018 & 4Q18 Highlight

22

23

Leading Integrated Petrochemical Complex in Asia by 2020

Power of Growth

G

Power of Digital

D

Power of People

P

Incremental Margin and Organization Health

• Capability Building
• Owner mindset & Performance

Orientation

• Cultural Changes

Propylene (UHV) 412 KTA 732 KTA Capacity Before After PP (PPE-PPC) 475 KTA 775 KTA Capacity Before After Fully Integrated PP

Margin Improvement

• Operational Excellence
• Commercial Excellence
• Procurement & HR Excellence

Benefit +135 MUSD

Other Projects Completion

• Operational Efficiency Improvement
• Asset Utilization Enhancement
• Product and Service Improvement
• Capacity and Products Expansion

CHP I

• Electricity
• Steam

PRP EBSM 108 MW 200 T/hr 312 KTA 200 KTA 328 MW 620 T/hr 412 KTA 260 KTA Capacity Before After

BIG

Revenue Growth : 5% EBITDA Growth : 10% 1st Quartile ROIC in Petroleum and Petrochemical Industry

STRONG LONG

Member of DJSI Emerging Markets Universe

2010 2014 2016

2018

2020

ROIC 14%

24

GDP: From Aspiration to Execution

Power Three : 3 Pillars for achieve Top Quartile in 2020

Power of 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 Growth

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

G

100

MUSD

100

MUSD

OPS 4.0

Smart Operation (AI)

ISC 4.0

Integrated Supply Chain

CCM 4.0

Customer Centric Digital

ERP 4.0

ERP Transformation

PRO 4.0

Lean procurement

100

MUSD

D

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: $1.1 bn - $1.3 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 acknowledged on project economics Early 2019 BOD final approval on EPC Bidding by mid 2019

25

26

M&A under “Galaxy” project

Investment in plastic product E-commerce business

• Company: Guangzhao Saiju Performance Polymer Ltd (GZSJ), China
• Business: E-commerce platform for variety of plastic products under

“IPLAS” platform

• Website: www.isuwang.com & www.suwen8.com
• Investment size: ~ 650 MB

E-commerce Platform – in China

Provide market place for supplier and buyer focusing in SME Service logistic as option for buyers and be included in prices Service credit term thru interest charged in prices Provide Technical service solution by the experts

E-commerce Platform : one stop service provider

• Company: iPolymer Company Limited
• Business: E-commerce platform in Thailand focusing in plastic and

chemical products

• Investment size: ~ 120 MB

E-commerce Platform – in Thailand

1

New market and distribution Big data analytic Leverage know-how

Benefit

GZSJ

15% 45% 55% iPolymer Ltd.

Shareholding Structure

1 2

(IPLAS Platform)

Founder & Others

85%

2

G

• Company: 2DM Materials Pte. Ltd. In SG
• Business: Investment size: ~ 47 MB
• Shareholding Structure
• Founders

63%

• IRPC (new shares) 20%
• Others

17%

M&A under “Galaxy” project

Marina Project : Step into “advance material” to add more specialties

27

Investment Profile Strategic Intent

• First mover in the advance material

“Graphene”

• Co-creation with existing project for new

market

• Secure and shorten New S-curve

product development 2D honeycomb arrangement of carbon atoms

What is Graphene?

Electric Vehicles

• Short and sharp bursts
• f energy

Advanced Batteries

• Increase efficiency and life

span Food Packaging

• Good O2, H2O barriers

Water Purification

• 99% contaminant removal

Aerospace

• Decrease weight

Ship Coating

• Prevent rusting

Application of Graphene

Energy Storage Membranes Composites & Coating

AFM: monolayer graphene Height ~ 0.8 nm.

With Unique Properties;

200X Stronger than steel Bendy & High transparency Thinnest imaginable material High electrical & thermal conductivity

G

IRPC 4.0 : €KON$

Online monitoring economics platform

28

Economics visualized real-time in the control room Management reports on performance against targets Globally accessible web platform for all IRPC

Objectives:

• Margin improvement through real-time

understanding of economic implications

• Optimized trade-off decisions across operational

parameters and closer tracking of targets

Benefit : ~ 30 M$/year Timeline : May 2018 – May 2019

 1st Wave: Basic Refinery ~ 5 months (11 Units)  2nd Wave: Basic Petrochemical & Specialist ~ 4 months (13 Units)  3rd Wave: Derivative Petrochemical ~ 4 months (13 Units)

Key Features

A tool optimizes key economics through refinery & petrochemical operations

D

29

CAPEX Plan in 2019 – 2023

Bt 71 bn committed CAPEX

2,878 2,481 2,912 2,743 4,782 2,821 64 1,924 387 188 4,034 9,532 16,256 10,765 616 389 642 533 4,103 3,314 2,327 2,235 723 108 83 49

5,846 11,316 14,087 23,210 18,944 3,486

2018A 2019 2020 2021 2022 2023

General & Maintenance Project E4E, IRPC 4.0 MARS project Strategic Investment Projects Others Unit: MB

15,739 , 22% 2,311 , 3% 41,203 , 58% 8,592 , 12% 3,198 , 5%

IRPC 5 year CAPEX Plan

General & Maintenance Project E4E, IRPC 4.0 Others Total 71,043 MB

Strategic Investment Projects

MARS Project

* Excluding capex for investment opportunities of Bt 34 bn

*

0.27 0.31 0.19

• 0.04

0.04

• 0.26

0.46 0.48 0.56 0.38

0.18 0.18 0.12 0.08 0.10 0.08 0.22 0.23 0.29 0.10 0.09

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

EPS Year Dividend 1H Dividend 2H Dividend 30

Dividend Policy & Payment

IRPC is firmly committed to pay dividend at no less than 25% of net income

67% 58% 63% 25% 25% 25% 48% 48% 52% 50%

Dividend Yield 4.1% 2.8% 2.9% 1.9% 3.1% 2.6% 5.1% 4.8% 4.1% 3.3% Share Price 2 4.38 6.50 4.08 4.12 3.26 3.06 4.30 4.80 7.05 5.75

IRPC pay at 48-67% payout ratio with average dividend yield of 3.5%

Dividend Payout Unit: THB/Share

• Div. Policy ≥ 25%

Note: 1 2H18 Dividend is subject to the approval of the Company’s Annual General Meeting of shareholders for the year 2019

2 Closing price at the end of period

N.A. N.A. N.A.

1

Thank You

This presentation material has been prepared solely for informational purposes only. IRPC is furnishing it solely for use by prospective investors / analysts in the proposed event. IRPC makes no representations or warranties as to the accuracy or completeness of such information. By accepting this material each recipient agrees that IRPC shall not have any liability for any representations (express or implied) contained in, or for any omissions from this presentation. The information contained herein does not purport to be all-inclusive or to contain all of the Information that may be material to the recipient’s decision. Each recipient of the information and data contained herein should perform its own independent investigation and analysis of the transaction and the creditworthiness of IRPC . Reference in this Disclaimer to this shall include references to the Appendices (if any) hereto.

Investor Relations Contact: ir@irpc.co.th

• Tel. +662-765-7380, Fax. +662-765-7379