GDP DRIVES US TOWARD FURTHER SUCCESS
Y2018 & 4Q18 Highlight Performance by Business Financial Performance Strategic Direction 2
Key Drivers Maintained high margin through projects completion amid volatile crude oil price Dubai Crude Oil Price (avg.) Foreign Exchange (avg.) Unit: $/bbl Unit : THB/USD 85 37 69.4 34.11 32.48 53.2 80 36 35.29 75 35 70 34.47 74.3 63.9 72.1 59.3 65 34 33.55 33.15 33.11 32.98 60 53.1 33 67.4 32.09 50.5 55 49.8 31.71 32 50 45 31 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Gross Refining Margin (GRM) Product to Feed Margin (PTF) Unit: $/bbl Unit: $/bbl QoQ 37% YoY - Unchanged QoQ 1% YoY 12% YoY 7% YoY 9% 8.3 7.8 7.3 7.1 7.0 5.9 5.5 5.2 5.2 4.3 4Q17 3Q18 4Q18 2017 2018 4Q17 3Q18 4Q18 2017 2018 3
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 Overview of Business 74.3 67.4 69.4 59.3 53.2 Dubai (Avg.) 2017 2018 Unit: $/bbl TA in 1Q17 Crude run KBD 207 203 208 180 208 2% 1% Net Sales QoQ 7% YoY 31% (net excise tax) YoY 10% Net Sales 28% 258,919 30% 197,594 (net excise tax) 197,594 258,919 68,831 64,233 58,443 MB MB Unit: MB 68% 71% Market GIM ($/bbl) 14.33 12.37 14.48 13.60 14.09 Net Stock G/(L)($/bbl) 1.73 (7.51) 1.01 (0.50) 2.89 Acct. GIM ($/bbl) 17.22 14.10 6.58 15.49 13.10 QoQ 90% YoY 10% 9% EBITDA 12% EBITDA YoY 92% 30% Unit: MB 20,420 18,344 37% 20,420 18,344 MB MB 6,530 5,258 54% 534 58% -4% YoY 32% QoQ 164% Net Income 15% 21% YoY 136% Net income 22% Unit: MB 11,354 8,859 8,621 7,735 7,735 11,354 Net Income 4,513 2,560 2,350 MB Operating NI MB 2,285 1,632 83% 63% (1,627) 4Q17 3Q18 4Q18 2017 2018 Petroleum Petrochemical Utilities and Others 4
Project Update : Catalyst Cooler On schedule : Mechanical completion in Feb 19 Project Progress : 89% of Target as of Feb. 2019 Catalyst Cooler Demin Project Objective : Construction Progress Crude selection more heavy crude Mechanical Completion : Catalyst Cooler More electricity & steam System on 8 Feb 2019. CAPEX : ~ 1,320 MB Progress : during commissioning process IRR : ~ 35% COD : ~ 1Q19 Benefit : GIM: 0.3$/bbl 5
Everest+E4E Project Highlight 2018: Everest+E4E contributed 87% of plan Unit : MB of EBIT 2017 2018 2018 Everest Everest Everest Actual Actual (Plan) Key Area Operations Area 3,011 4,276 4,736 Integrated Supply Chain 2,077 1,821 2,456 1,179 1,444 1,870 Commercial Area 234 31 211 Procurement Area 287 397 275 Corporate Area – Non HR $ 18 1 19 Corporate Area - HR Total Everest 6,807 7,970 9,569 Everest Forever (E4E) 1,397 1,157 87% of 9,367 10,726 Total Everest + E4E Plan 6
Achievement in 2018 Credit Rating Safety Improvement ● Moody’s Rating affirms at ‘ Ba1 ’ 0.58% 0.45% 0.39% Outlook: Stable Positive Improving Operating Performance 2017 2016 2018 ● Standard & Poor’s Ratings affirms at Total Recordable Injuries Rate ( TRIR) * at 0.39% in 2018 : 0.06% ‘BB+’ Outlook: Stable Positive Zero Unplanned Shutdown Plant Improving Operating Performance 14 12 10 ● Fitch Ratings affirms at ‘A - (tha)’ 2017 2018 Outlook Stable 2016 14 plants in 2018 vs 12 plants in 2017 : 2 plants Marketing Efficient Energy Usage Management Investment in Plastic Product E-Commerce Business 93.89% 90.40% 89.00% ● IRPC Join Guangzhao Saiju Performance Polymer Ltd. in the People’s Republic of China ( PRC) ● Registered iPolymer Co., Ltd 2018 2017 2016 IRPC 55% GZSJ 45% Energy Intensity Index (EII) at 89% in 2018 : 1.40% Total Recordable Injuries Case: TRIC x 200,000 7 *TRIR = Working Hour
Awards and Recognition in 2018 IRPC’s Achievement Dow Jones Sustainability The Prime Minister's Indices (DJSI) Member Industry Award 2018 For the fifth consecutive year, with the highest score By Ministry of Industry By SAM received outstanding plant management Thailand Quality Class Sustainability Report Award 2018 Award 2018 “Excellent Level” Thailand Quality Class : TQC By The Stock Exchange By Thailand Productivity Institute, of Thailand a network institution under the Ministry of Industry Social Contribution Innovation SET Awards 2018 Outstanding Innovative Company Awards “ Convert HDPE to Specialty Pipe” By The Stock Exchange of Thailand (SET) in collaboration with the “ Lumsaiyong Model” “Prosthetics Project” Money and Banking Magazine 8
Y2018 & 4Q18 Highlight Performance by Business Financial Performance Strategic Direction 9
Petroleum Spread Refinery Spread Lube Base Spread - Oversupply result in higher Gasoline - Lower import from China as YoY ULG 95 - Dubai YoY 500SN – FO 180 3.5%S Spread inventory in U.S. and Europe Yuan depreciation against - Higher export volume from China $/TON USD $/bbl YoY 30% QoQ 10% YoY 10% QoQ 59% 556 528 16.1 513 498 14.9 481 14.8 14.2 14.4 458 13.7 451 447 417 12.1 11.6 375 10.5 4.7 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 YoY + Higher Global demand Gas oil - Dubai 150 BS – FO 180 3.5%S Spread + Lower export volume from China $/bbl $/TON QoQ -Stable YoY 14% QoQ 3% YoY 17% 658 635 602 579 588 536 544 518 14.8 14.6 14.4 14.8 14.6 13.9 471 471 13.0 12.5 11.8 11.4 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 - Soften demand in Asia - Soften demand as a decrease YoY HSFO - Dubai Asphalt – FO 180 3.5%S Spread YoY of road construction project $/TON $/bbl QoQ 156% YoY 13% QoQ 51% YoY 48% 1.4 (13) (20) (28) (31) (38) (41) (44) (46) (55) (68) (1.4) (1.8) (2.5) (2.3) (2.6) (3.1) (3.1) (4.4) (4.9) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 10
Petroleum Group 2018: Higher crude run resulted in higher petroleum sales 4Q18 : Better product yield after RDCC plant resumed its operation leading to higher MKT GRM Crude Intake Production QoQ 2% YoY 16% Crude Run YoY 17% Unit : Mbbl YoY 0.4% 207 2 03 208 180 208 (KBD) 59.6 96% 9 4 % 97% 84% 97% % U-Rate 7.0 Lube Base Oil 50.9 2.3 10% Others 13% 13% 14% 14% 6.4 3.0 QoQ 3% LPG & Other 7% 9% 1.8 9% 8% 8% Domestic 18% 9.9 YoY 3% 14% 12% 15% 21% 5.1 Naphtha & Far East 6.2 64% 66% 65% 63% Reformate 57% Middle East 15.3 Gasoline 14.8 14.9 1.7 1.7 1.8 35.0 32% 31% 33% 34% 41% Sweet Crude 0.5 0.6 0.7 29.5 Diesel & Jet 1.4 1.0 0.9 68% 69% 67% 66% Sour Crude 2.6 59% 2.3 Oil 2.0 8.5 8.9 Fuel Oil 8.4 4Q17 3Q18 4Q18 2017 2018 0.5 0.9 0.5 1.9 2.3 Premium over 4Q17 3Q18 4Q18 2017 2018 2.6 2.8 3.2 2.1 3.2 Dubai ($/bbl) Sales Volume & Revenue GRM 76.1 65.5 Crude intake Sales Volume QoQ 1% YoY 15% Unit : Mbbl 19.1 18.7 19.1 (Mbbl) YoY 2% 67.8 58.8 7.0 QoQ 37% YoY - Unchanged 6.4 YoY 7% Lube Base 16.8 17.0 17.2 60.8 5.9 52.4 1.7 5.5 Refinery Unit : $/bbl 1.8 1.7 5.2 5.2 15.0 15.3 15.4 1.6 4.3 4Q17 3Q18 4Q18 2017 2018 1.8 1.7 Lube Base 2.1 Revenue QoQ 6% 1.5 YoY 35% Unit : MB YoY 13% Refinery 4Q17 3Q18 4Q18 2017 2018 4.4 3.8 3.5 3.1 2.9 40,647 48,913 45,905 135,125 182,953 Petroleum 36,243 43,998 40,924 119,015 163,724 Refinery 4Q17 3Q18 4Q18 2017 2018 Lube Base 4,404 4,915 4,981 16,110 19,229 11
Petrochemical Spread HDPE-Ethylene – Naphtha PP-Propylene – Naphtha + Decrease addition supply + Continuously increasing demand from YoY YoY Spread Spread - Trade War : between the U.S. and pipe production especially China China $/TON $/TON QoQ 15% QoQ 4% YoY 7% YoY - Stable Olefins Ethylene-NP HDPE-Ethylene Propylene-NP PP-Propylene 762 830 823 910 1,026 1,008 831 886 663 661 679 621 693 660 617 641 817 695 656 653 367 427 284 201 360 171 286 267 235 228 287 356 298 272 278 365 256 328 363 389 659 622 626 591 581 596 544 550 526 435 406 362 361 369 375 323 328 296 306 258 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 + Higher demand to be feedstock - Soften demand following lower YoY YoY MX – Naphtha Spread Toluene – Naphtha Spread for PX gasoline demand $/TON $/TON Aromatics QoQ 2% QoQ 1% YoY 23% YoY 14% 217 219 192 202 182 172 196 200 170 159 182 164 159 123 109 137 115 121 119 114 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 - Soften demand from China as the - Weaken demand from trade ABS – Naphtha Spread YoY PS – Naphtha Spread YoY U.S. – China trade war concerns war (U.S. VS China) $/TON - “Single use plastic” Ban $/TON Styrenics QoQ 17% QoQ 10% YoY 5% YoY 4% 1,428 1,382 1,377 1,379 1,353 1,334 1,272 1,248 1,226 1,029 878 977 905 998 945 898 807 947 1,032 912 12 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
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