IRPC Public Company Limited Opportunity Day : 3Q17 & 9M17 Result - - PowerPoint PPT Presentation

IRPC Public Company Limited

Opportunity Day : 3Q17 & 9M17 Result

21 November 2017

3Q17 & 9M17 Highlight Operation & Financial Performance Project Update

Agenda

Industry Outlook

2

Financial Highlight: 3Q17 & 9M17 Performance

Higher spread & net stock gain resulted in good performance

41,622 49,930 52,355 120,343 139,151

QoQ 5% YoY 26%

Overview of Business

Net Sales

(net excise tax)

Dubai (Avg.)

Unit: $/bbl

Net Income

Unit: MB Unit: MB YoY 149% QoQ 164%

EBITDA

Unit: MB

3,098 3,706 6,635 12,957 13,890

YoY 114% QoQ 79%

2Q17

Petroleum Petrochemical Utilities and Others

Net Sales

(net excise tax)

EBITDA Net income

3

YoY 16% YoY 7% YoY 15%

3Q17

42% 50% 8% 68% 31% 1%

52,355 MB 1,307 1,228 3,248 8,027 6,841

3Q16 2Q17 3Q17 9M16 9M17

6,635 MB 43 50 51 39 51

Crude run KBD 176 194 201 181 170

36% 59% 5% Planned TA in 1Q17

• 10%

93% 17% 23% 61% 16% 70% 29% 1%

49,930 MB 3,706 MB 1,228 MB 3,248 MB Market GIM ($/bbl) 12.5 13.6 15.1 13.2 14.6

• Acct. GIM ($/bbl)

11.4 11.6 16.1 12.7 14.9

3Q17 & 9M17 Highlight Operation & Financial Performance Project Update

Agenda

Industry Outlook

4

+ Higher ULG95 price impacted from Hurricane Harvey + lower inventory in Singapore after export to Mexico + Strong demand from ME and India +  Demand from Indonesia and Vietnam

5

Petroleum Spread

Better Refinery Spread from strong demand and lower supply by Hurricane impact

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

18.8 14.5 11.6 14.6 14.8 14.2 16.1

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

(5.2) (8.7) (4.3) (1.7) (3.1) (1.8) (1.4)

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

9.6 10.5 11.0 12.0 11.8 11.4 13.9

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 (7) (48) (61) (80) (13) (38) (28) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

$/TON

844 780 725 602 635 658 579 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

$/TON

442 418 443 367 451 556 528

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

$/TON

6.1 0.7 (1.9) 0.2 1.1 (1.3) (0.2)

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

QoQ  85%

Naphtha - Dubai

+ Higher Cracker plant’s utilization rate

QoQ  13% QoQ  22% QoQ  12% QoQ  22% QoQ  26% QoQ  5%

+ Tight supply impacted from Hurricane + High demand from Sri Lanka + Lower supply from Europe, Persian Gulf and export from Russia + Increasing demand from ME for power generation

• Plant resumed operation after main. SD in Asia
• Lower demand during Monsoon season

+ Tight supply from refineries’ main. SD in Singapore

• Plant resumed operation after main. SD in Asia
• Lower demand during Monsoon season

1.8 1.6 0.7 0.7 0.6 0.7 0.3 3.7 1.7 7.6 7.6 7.1 7.6 4.7 7.8 8.6 22.7 21.1 1.6 1.6 1.6 1.6 0.8 1.7 1.7 4.7 4.2

0.6 0.5 0.7 0.8 0.6 1.0 0.6 1.7 2.2 0.3 0.1

• 0.1

0.0 0.1 0.1 0.3 0.3

1.0 0.8 0.7 0.9 0.5 0.8 0.9 2.5 2.2

0.8 0.9 0.8 0.9 0.5 0.9 0.9 2.5 2.3

0.9 1.2 0.4 1.0 1.0 0.9 2.6

13.6 13.1 12.4 13.6 8.1 14.1 14.2 38.9 36.6

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17

RDCC Lube Asphalt LPG + Other Naphtha Gasoline Diesel Fuel

Petroleum Production

Higher crude run after ADU II internal column retrofit enhance capacity

187 182 176 188 116 194 201 181 170 Crude Run (KBD)

87% 85% 82% 87% 53% 90% 93% 84% 79% % U-Rate TA in 1Q17 TA

Unit : Mbbl

Remark: Excluding internal use quantity Middle East, 66% Far East, 19% Domestic, 6% Others, 9%

Source of Crude

 3Q17: 93% Utilization Rate

• QoQ: 3% increase from ADU II capacity improvement
• YoY : 11% increase from higher U-Rate of ADU II & RDCC units

 9M17: 79% Utilization Rate

• 5% decrease according to Planned Turnaround in 1Q17

6

Petroleum Production

20,981 23,354 24,221 29,792 21,405 30,314 31,053 68,556 82,772 Refinery 24,966 27,088 27,589 33,509 24,344 34,754 35,380 79,643 94,478

Petroleum

3,985 3,734 3,368 3,717 2,939 4,440 4,327 11,087 11,706

Lube Base

3.2 1.4 2.0 4.0 2.4 2.1 3.8 2.2 2.8 2.8 2.6 2.1 1.4 2.4 2.5 2.1 2.5 2.3 6.0 4.0 4.1 5.4 4.8 4.6 5.9 4.7 5.1 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17 Lube Base Refinery

Market GRM Sales Volume & Revenue

17.0 16.6 16.2 17.3 10.4 17.6 18.5 49.7 46.5

Crude intake M.bbl

Unit : $/bbl

Sales Distribution

Local 59% Export 41%

9M17

Top 5 Export Destination in 3Q17 : Singapore, Malaysia, Cambodia, Laos, Japan

 3Q17 : Petroleum revenue

• 2% increase QoQ: 2% volume increase vs stable price
• 28% increase YoY : 11% volume & 17% price increase

 3Q17 Market GRM was $5.9/bbl:

• $1.3/bbl increase QoQ due to higher Refinery’s spread
• $1.8/bbl increase YoY from higher Diesel & FO spread

Local 54% Export 46%

YoY  11% QoQ  2% YoY  28% QoQ  2% Sales volume (M.bbl) Revenue (MB)

7

YoY  19%

Petroleum Group : Sales & Gross Refinery Margin (GRM)

Refinery products spread brought better market GRM

3Q17

 9M17 : Petroleum revenue

• 19% increase YoY: 23% price increase vs 4% volume decrease

 9M17 Market GRM was $5.1/bbl:

• $0.4/bbl increase YoY due to higher Diesel & FO spread

TA in 1Q17 TA 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17

YoY  4% 13.2 12.1 12.9 13.9 9.0 14.1 14.3 38.1 37.3

2.0 1.8 1.6 1.7 1.1 1.7 1.8 5.5 4.6

15.2 13.9 14.5 15.6 10.1 15.8 16.1 43.6 42.0

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17

Lube Base Refinery

224 184 175 192 200 170 159

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

$/TON

668 688 668 529 591 544 622 239 188 177 232 171 286 201

907 876 845 761 762 830 823

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

$/TON

Ethylene-NP HDPE-Ethylene

254 262 267 215 192 202 182

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

$/TON

809 806 810 842 1,029 878 977

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

$/TON

304 308 339 272 435 296 323 295 376 360 366 228 365 356

600 684 699 638 663 661 679

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

$/TON

Propylene-NP PP-Propylene

8

Petrochemical Spread

Shortage supply support Styrenics spread, lower Aromatics spread from soften demand

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

Olefins Styrenics Aromatics

854 897 984 1,092 1,382 1,226 1,377

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

$/TON

QoQ  1% QoQ  3% QoQ  6% QoQ  11% QoQ  12% QoQ  10%

• RM prices moved up following crude
• il price
• Feedstock prices increased following

crude oil price

• Soften demand

+Product prices rose following crude

• il price

+Higher demand to support the production for upcoming festivals

• Lower Demand
• Higher supply from plants

resumed operation after SD +Higher demand to support manufacturing season +Shortage of RM caused by Hurricane + Increasing Demand + Tight supply due to impacted from Hurricane

101 92 97 96 48 95 101 290 244

3 1 1 4 3 2 3 5 8

81 75 73 82 62 85 81 228 228

184 168 170 182 113 182 184 523 480

49 52 44 29 10 53 58 146 121 134 139 137 126 99 140 162 410 401

183 191 181 154 109 193 220 555 522

Petrochemical Group : Production

Higher U-Rate after plant efficiency improvement program

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17 94% 95% 88% 84% 54% 95% 97% 92% 82%

% U-Rate 88% 91% 89% 82% 67% 93% 98% 89% 86% Polyolefins 99% 99% 87% 85% 42% 96% 97% 95% 78%

Olefins

Styrenics Aromatics

Aromatics & Styrenics Olefins

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17 98% 89% 80% 93% 61% 97% 104%

89%

87% % U-Rate

90% 86% 77% 80% 71% 95% 92% 84% 86%

Polystyrenics

97% 78% 49% 105% 69% 107% 113% 75% 96%

Styrenics

106% 98% 100% 98% 47% 94% 110% 101% 84%

Aromatics

Polystyrenics

Olefins Polyolefins

Unit : KMT Unit : KMT

Remark : - Utilization rate calculated based on the main products

• volume excluded internal use

 3Q17: 97% Olefins U-Rate at 220 KMT: PPE started up in Sept. 2017 with 160 KTA capacity  9M17: 82% Olefins U-Rate as planned TA in 1Q17

9

UHV COD

 3Q17: 104% Aromatics & Styrenics U-Rate at 184 KTA owing to plant efficiency improvement  9M17 : YoY slightly lower U-rate given with planned TA in 1Q17

182 152 163 180 114 160 185 497 459 196 212 226 224 169 237 270 633 676

378 364 389 404 283 397 455 1,130 1,135 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17

Aromatics & Styrenics Olefins & Polyolefins

Petrochemical Group : Sales & Product to Feed (PTF)

Higher sales volume and better Styrenics spread

1.8 2.4 1.5 2.4 4.0 2.9 2.9 1.9 3.2 4.9 5.9 5.7 3.8 5.7 5.1 5.3 5.5 5.3

6.7 8.3 7.2 6.2 9.7 8.0 8.2 7.4 8.5

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17

Unit : $/bbl Aromatics & Styrenics Olefins & Polyolefins Crude intake (M.bbl)

Sales Volume and Revenue

17.0 16.6 16.2 17.3 10.4 17.6 18.5 49.7 46.5

Sales Distribution

Local 51% Export 49%

3Q17

Top 5 Export Destination in 3Q17: Hong Kong, Japan, Singapore, Australia, Vietnam

Local 56% Export 44%

 3Q17 : Petrochemical revenue

• 12%  QoQ: 15% volume increase vs 3% price decrease
• 22%  YoY: 17% volume increase & 5% price increase

 3Q17 Market PTF was $8.2/bbl

• $0.2/bbl  QoQ mainly from Styrenics spread
• $1.0/bbl  YoY mainly from better Styrenics spread

YoY  17% QoQ  15% YoY  22% QoQ  12%

Sales volume (KMT) Revenue (MB)

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17

10

YoY  0.4% YoY  11%

Market PTF 9M17  9M17 : Petrochemical revenue

• 11% increase YoY: 11% price increase vs stable volume

 9M17 Market PTF was $8.5/bbl

• $1.1/bbl increase YoY mainly from Styrenics spread

12,471 12,573 13,292 13,780 11,951 14,472 16,251 38,334 42,674 Petro chem 6,781 7,497 8,058 7,445 6,798 8,361 9,543 22,335 24,702

Olefins

5,690 5,076 5,234 6,335 5,153 6,111 6,708 15,999 17,972

Aro& Styrenics

3,625 2,327 2,323 3,341 1,748 2,760 3,662 8,276 8,171

4,103 4,857 4,091 3,818 3,561 4,864 5,107 13,051 13,531 595 685 665 603 453 616 562 1,944 1,631

8,323 7,869 7,079 7,762 5,762 8,240 9,331 23,271 23,333

GRM PTF Power & Utility

13.7 13.4 12.5 12.6 15.7 13.6 15.1 13.2 14.6

(1.2) 3.8 0.1 2.4 3.4 (1.2) 1.8 0.9 1.0

(1.5) (1.4) (1.2) (1.9) (0.8) (0.8) (0.7) (1.4) (0.8)

11.0 15.8 11.4 13.1 18.3 11.6 16.1 12.7 14.9 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17

Gross Integrated Margin (GIM)

Better spread and stock gain resulted in higher Accounting GIM Market GIM

Unit: $/bbl

Accounting GIM

Unit: $/bbl

Unit: MB

8,323 7,869 7,079 7,762 5,762 8,240 9,331 23,271 23,333

(712) 2,242 44 1,471 1,275 (712) 1,098 1,574 1,661 (920) (821) (686) (1,194) (300) (466) (455) (2,427) (1,221)

6,691 9,290 6,437 8,039 6,737 7,062 9,974 22,418 23,773

Market GIM Stk G/(L) & LCM Hedging

11

3.2 1.4 2.0 4.0 2.4 2.1 3.9 2.2 2.8 2.8 2.6 2.1 1.5 2.4 2.5 2.1 2.5 2.3

6.0 4.0 4.1 5.4 4.8 4.6 5.9 4.7 5.1 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17

Refinery Lube Base 4.9 5.9 5.7 3.8 5.7 5.1 5.3 5.5 5.3 1.8 2.4 1.5 2.4 4.0 2.9 2.9 1.9 3.2

6.7 8.3 7.2 6.2 9.7 8.0 8.2 7.4 8.5

Olefins Aromatics&Styrenics

Market GIM by business

Unit: $/bbl

Petrochemical Petroleum

Unit: MB

6.0 4.0 4.1 5.4 4.8 4.6 5.9 4.7 5.1 6.7 8.3 7.2 6.2 9.7 8.0 8.2 7.4 8.5

1.0 1.1 1.2 1.0 1.2 1.0 0.9 1.1 1.0

13.7 13.4 12.5 12.6 15.7 13.6 15.1 13.2 14.6 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17

Accounting GIM

• 3Q17 Acct GIM was $16.1/bbl vs 2Q17 of $11.6/bbl; higher

Market GIM from spread and stock gain in 3Q17

• 9M17 Acct GIM was $14.9/bbl vs 9M16 of $12.7/bbl; higher

Market GIM and lower hedging loss Market GIM

• 3Q17 Market GIM was $15.1/bbl, higher by $1.5/bbl

mainly from higher Refinery & Styrenics spread

• 9M17 Market GIM was $14.6/bbl, higher $1.4/bbl from

higher Refinery & Styrenics spread

12

Financial Performance

3Q16 2Q17 3Q17 QoQ YoY 9M16 9M17 Net Sales 41,622 49,930 52,355 5% 26% 120,343 139,151 16% Market GIM 7,079 8,240 9,331 13% 32% 23,271 23,333 0% Stock Gain/(Loss) 40 (706) 1,098 255% 2645% 1,286 1,662 29% LCM 4 (6) (0) 92% (111)% 288 (1) (100)% Oil Hedging Gain/(Loss) (686) (466) (455) 2% 34% (2,427) (1,221) 50% Net Stock Gain/(Loss) (642) (1,178) 643 155% 200% (853) 440 152% Accounting GIM 6,437 7,062 9,974 41% 55% 22,418 23,773 6% OPEX + Selling Exp. (3,666) (3,786) (3,715) 2% (1)% (10,411) (11,003) (6)% Other Incomes 328 429 376 (12)% 15% 951 1,120 18% EBITDA 3,098 3,706 6,635 79% 114% 12,957 13,890 7% Cost of Finance (471) (537) (710) (32)% (51)% (890) (1,789) (101)% FX Gain/(Loss) 181 52 90 73% (50)% 543 677 25% Impairment Gain/(Loss)

• 2
• (100)%
• 238
• Investment Gain/(Loss)

60 117 109 (7)% 82% 82 322 293% Other Expenses (40) (5)

• 100%

100% (66) (9) 86% Income Tax 189 (191) (846) (343)% (548)% (121) (1,445) (1094)% Net Profit 1,307 1,228 3,248 164% 149% 8,027 6,841 (15)% % Change Unit: MB

56,008 58,617 54,895 8,674 10,476 10,503 64,682 69,093 65,398

2,020 2,181 3,759

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000

3Q16 2Q17 3Q17 L/T Debt S/T Debt Cash

0.79 0.84 0.74

3Q16 2Q17 3Q17

13

Debt Portfolio

Lower debt after most of repayment be done in 9M17

ST Loan 15% LT Loan (USD) 7% LT Loan (THB) 52% Bond (THB) 26%

Debt Structure Debt Profile

Float 77 THB 70 Fixed 23 USD 30 Currency (%) Interest Rate (%)

Net Debt = 61,639 MB

• Ex. Rate = 33.53 Baht/$

Financial Ratios

0.73 0.89 0.85

3Q16 2Q17 3Q17

< 1.0x

Net D/E CA/CL

Unit : MB Net Debt

Maturity of Long-term Debt

Unit : MB MB ST Loan THB 10,503 LT Loan USD 125 4,181 LT Loan THB 35,467 Bond THB 15,247 Total 125 65,398

Debt

Currency

62,662 61,639 66,912

498 2,536 3,732 6,205 22,496

• 3,181

667 333

• 4,999

3,362

• 6,886

498 10,715 7,761 6,539 29,383 4Q17 2018 2019 2020 >2020 THB Bond USD Loan THB Loan Remark: Long-term debt as at 30 Sep 2017

14

Statement of Financial Position & Ratio

Higher profitability Ratios derived from good performance

121,361 128,296 11,169 9,828 37,806 40,637 2,042 3,759 81,005 83,392 2,203 2,296 56,445 54,895 32,725 41,937

Unit: MB

PP&E Other Non-C/A Cash 172,378 Other Current Liabilities L/T Liabilities (incl. due within 1 yr) Shareholders’ Equity

• Sept. 30, 2017

182,520

• Dec. 31, 2016

Assets :  Cash 1,717 MB  AR 3,160 MB

• Higher sales volume

 PP&E 5,593 MB

• Increase mainly from PPE & PPC Projects

Liabilities & Equity  AP 5,227 MB

• Higher crude oil inventories

 IBD 2,811 MB

• Higher mainly from ST loan of 4,362 MB
• Slightly lower of long-term loan (incl.

current portion of 1,551 MB (drawdown LT loan of 18,000 MB and repaid LT loans & bonds of 18,822 MB)  Equity 2,387 MB

• Increase mainly from NI of 6,841 MB
• Decrease from dividend payment of 4,722

MB (Bt 0.23 per share)

Other C/A As of ending

3Q16 2Q17 3Q17 As of ending 3Q16 2Q17 3Q17 EBITDA Margin (%) 6.78 6.79 11.7 Current Ratio (time) 0.73 0.89 0.85 Net Profit Margin (%) 2.86 2.25 5.73 Quick Ratio (time) 0.23 0.31 0.32 Earnings per share (Baht/share) 0.06 0.06 0.16 Return on Equity

(%)

13.79 8.94 11.11 Net Debt to Equity (time) 0.79 0.84 0.74 RATIOS Financial Policy Ratio Profitability Ratios Liquidity Ratios

Other Non-Current Liabilities

3Q17 & 9M17 Highlight Operation & Financial Performance Project Update1

Agenda

Industry Outlook

15

23% 8% 11% 4% 4% 14% 10% 15% 11% 11% 40% 38% 45% 47% 48% 5% 10% 8% 9% 10% 16% 21% 16% 19% 18% 2% 5% 3% 3% 3% 6% 1% 6% 6% 2% 0.8% IRPC IRPC+UHV IRPC 2015A IRPC 2017F IRPC 2018F Ethylene Propylene LPG Naphtha Gasoline Diesel/Jet Fuel Lube Oil Fuel Oil

Designed Yield

0.8%

Project Update: UHV project

IRPC’s Production Yield Upstream project for Hygiene & Value-added Products Objective : Upgrade low value to high valued-added products Investment : $ 1.1 bn COD : Jul. 2016 Benefit : GIM 1.5-2.0 $/ bbl

Assumption : Spread propylene to FO ~ 500-600$/bbl RDCC unit

• Feed Cut-in

@ Jun 16

• COD @ Jul 16

HYVAHL unit

• Feed Cut-in

HS-ATB @ Jul 16

• COD @ Jul 16

Performance Guarantee Test

• RDCC run 100%

@ Oct 2016

Plant Acceptance (PAC) Jan 2017

43% 84% 95%

2016A 2017F 2018F

Upgrade to High Valued-Added products

UHV to raise flexibility and improve product yield and earnings

131 123 163 367 220 326 74

HS-ATB LPG Ethylene

HYVAHL Propylene

Naphtha FO/FG

Middle Distillates

RDCC

C4 Raffinate III

Internal use & Loss

Unit : KTA 16% 5%

23%

9% 9% 26% 12%

Flow Diagram

LS-ATB

UHV

Designed Yield

16

Value added on UHV project

Gasoline Maximization Project UHV Catalyst Cooler in RDCC plant

Objectives

• Flexibility of crude selection
• Fully optimized UHV operation
• Utility cost from cracking heavy crude molecule

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

• To capture domestic market gasoline deficit
• Increase UHV benefit
• Maximize Gasoline Yield
• Reduce Thailand import

CAPEX : 1,100 MB IRR : ~ 80% COD : by end 2017 Benefit : GIM 0.4$/bbl

Demin

To improve margin with small CAPEX

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

17

Project Update: PPE & PPC

18

MC : Aug 17 COD : Sep 17

PPC PPE

MC : Sep 17 COD Plan : End Nov 17

PP Expansion Project (PPE)

 Licensor : Novolen  Capacity : 160 KTA  PMC : Foster Wheeler, EPC : Sinopec PP Compound & Specialties (PPC)  Licensor : Japan Polypropylene Corp. (JPP)  Capacity : 140 KTA  PMC : Foster Wheeler , EPC : Sinopec

Operation 37% Supply Chain 19% Commercial 27% Procurement 3% Corporate 14% 2017 Target 7,003 MB

Efficiency Improvement from Everest Project

To reach $300 mn benefits from Everest with CAPEX ≤10% on benefit : Key Driver to reach Top Quartile

19

Height 29,029 ft.

Basecamp (17,500’) Camp l (19,500’) Camp ll (21,000’) Camp lll (23,500’) Camp lV (26,300’)

2020

2016 2017 2018 2019

ROIC 14%

1st Quartile ROIC in Petroleum & Petrochemical Industry

Stron

• ng

g Perf Perform

• rmanc

ance

Hea ealthy y Organiza nization tion (OHI) I)

+

ROIC 8%

Getting to the top and staying there

2,560 177 281

7,003 Total Y2017 (Target)

1,348 716

9M17 Actual

1,091 778 277 165

2,311 Y2016 Actual

1,771 682 214 122

4,414

166 1,458

Procurement Area Commercial Area Operations Area Corporate Area : Non HR

$

Integrated Supply Chain Corporate Area : HR

$100m $200m $300m

• Optimize crude selection
• Adjusting production unit

parameter

• Maximize energy efficiency
• Reduce loss in production
• Improve maintenance

efficiency

• Reduce production unit

downtime

• Budget management
• Develop human capabilities
• Reduce cost thru

E-Procurement

• Maximize commercial value;

go to the new market

19

1,921

20

Everest Project Highlight : 3Q17 & 9M17 Performance

Procurement Area Commercial Area Operations Area Corporate Area - Non HR

• Maximize energy efficiency and reduce loss in production units
• Improve efficiency and effectiveness of maintenance
• Reduce production unit downtime and minimize operating days lost
• Maximize commercial value generation from refined petroleum and

petrochemical products

• Asset Port and Tank management
• Optimize timing, duration and cost of turnaround
• Spend optimization with key expenditure categories
• Optimize small CAPEX spend for highest value expenditures
• Budget management
• Optimize planning and policies to ensure continued productivity

enhancement 2,560 1,921 177 281

1,771 682 214 122

7,003 4,414 Total

Y2017 (Target) 9M17 Actual

Unit: MB of EBIT

$

Integrated Supply Chain

• Optimize crude selection, product blending and hydrocarbon stock
• Enhance throughput & yield by adjusting production unit parameter

Corporate Area - HR

• Develop capabilities to sustain both performance and health
• Improve organizational health practices for top quartile outcomes

1,348 716

166 1,459

Key Area

930 287 115 42

2,059

3Q17 Actual

43 642

200 400 600 800 1,000 1,200 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F 10,000 20,000 30,000 40,000 50,000 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F

Sales Plan

IRPC A & L Company Limited

Marketing ABS and ABS Color Compound Products for the automotive industry, electronics, and office equipment

Shareholding Structure

• IRPC ….……………… 60%
• Nippon A&L(NAL) …. 37%
• Sumithai ……………. 3%

Joint Venture

IRPC Polyol Company Limited

Production and marketing for Polyurethane Products

Shareholding Structure

• IRPC ….…………………………………… 75%
• PCC Rokita SA (Poland) ………………. 25%

Sales Plan

• 5,000

10,000 15,000 20,000 25,000 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F

High-value product Standard product

IRPC Clean Power Company Limited

To produce electricity and steam for EGAT’s SPP contract and UHV project The Company was incorporated on June 20, 2013

Shareholding Structure

• GPSC Plc….………… 51%
• IRPC ……..…………. 49%

CAPEX : ~13,500 MB IRR : ~11%

Net Profit Plan

MB Total

• Electricity : 240 MW
• Steam : 300 T/h

Phase 1 COD: Nov 2015

• Electricity : 45 MW
• Steam : 170 T/h

Phase 2 COD: Nov 2017 Capacity

Enter into new geographic markets and gain new technological knowledge

Ton Ton 21

Construction period

Phase I Phase I & II

3Q17 & 9M17 Highlight Operation & Financial Performance Project Update

Agenda

Industry Outlook

22

Crude Oil Supply & Outlook

Target Production reached target Production did not reach target

Non-OPEC reach compliance since Aug. 2017

23 35 40 45 50 55 60 65 70 2015 2016 2017 2018 2019

Norddeutsche Landesbank Market Risk Advisory Wells Fargo BMI Reserch Deutsche Bank Bank of Nova Scotia $53-57 $54-57 $56-65

Source: Bloomberg

Note: Report Sept. - early

• Nov. 2017

$/bbl Brent

Crude Oil Price Forecast

World oil production and consumption balance

Leaded by Saudi Arabia, Venezuela, Angola

Tight Supply from OPEC and non-OPEC producers to extend supply cut and the steady reduction of excess U.S supply

OPEC reach its target of production cut by 1.13 MBD (97%)

OPEC : 97% compliance in Sept. 2017

Dubai price Base Case $52-57

+ High potential of OPEC and non-OPEC oil producers to extend supply cut extension beyond March 2018 + Amid expectation of falling global oil inventories from growing oil demand prospects has also supported prices

• Gasoline cracks remain structurally strong amid significant risk

from higher supply after refineries increase run rates during winter demand

• Middle distillate cracks continue to be under downwards pressure

due to surplus from China and India amid weaker demand in Industry sector

• Diesel cracks were boosted by pre-stocking demand ahead of

winter

Short-Term Crude Oil and Petroleum Products Outlook

Driving Determinants

24

Key Products Price (3Q17) Spread 3Q17 4Q17 1Q18 Refinery ($/bbl) ($/bbl) Outlook Outlook Dubai 50.5 ULG95 66.6 16.1 GAS OIL 0.05%S 64.4 13.9 FO 49.1 (1.4) Lube Base Oil ($/T) ($/T) Outlook Outlook 500 SN 840 528 150 BS 891 579

+ Demand pick up after rainy season

• Ample supply in China as local refineries increase capacities
• Slow demand before Chinese new year but to rebound after it

ended

• Weak demand from winter in North East Asia
• Slow demand before Chinese new year

+ Fuel oil cracks stay strong as global supply reduced especially from FSU + Winter demand support FO price

Short-Term Petrochemical Products Outlook

25

Key Products Price (3Q17) Spread (3Q17) 4Q17 1Q18 Olefins ($/T) ($/T) Outlook Outlook Ethylene 1,090 622 Propylene 791 323 HDPE 1,291 823 PP 1,147 679 Styrenics ($/T) ($/T) Outlook Outlook PS 1,445 977 ABS 1,845 1,377 Driving Determinants

 Styrenics to be soften in 4Q17 but stronger in 1Q18

• Soften demand before year end as producers tends to lean

their inventories + Producers to increase their stock again after year end  PE: Additional capacity from North American with cost advantaged feedstock from shale gas is potentially delayed  PP: + China market remains active

• Additional China supply of 950 KTA (Zhongtian Hechuang and

Shenhua) will be delayed, 1Q18 at the earliest + ASEAN, Indonesia and Vietnam, still short of supply

 Olefins market be affirmed + Less export from SEA + Tighten market during 4Q17, schedule turnaround in Asia

Capacity Before After Propylene (UHV) 412 KTA 732 KTA

2010 2014

Margin Improvement

• Operational Excellence
• Commercial Excellence
• Procurement & HR

Excellence

Benefit +135 MUSD

INDIVIDUAL OWNERSHIP SYNERGY PERFORMANCE EXCELLENCE INNOVATION RESPONSIBILITY FOR SOCIETY INTEGRITY & ETHICS TRUST & RESPECT

Other Projects Completion

• Operational Efficiency

Improvement

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

Incremental Margin and Organization Health

• Capability Building
• Owner mindset & Performance

Orientation

• Cultural Changes

Fully Integrated PP

E4E Everest forever

IRPC Strategic Roadmap to 2020

BIG

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

STRONG LONG

Member of DJSI Emerging Markets Universe

Capacity

Before After PP (PPE&PPC) 475 KTA 775 KTA

2017

2016

26

Beyond Everest

Power of Growth Power of People Power of Digital

Capture benefits and growth after investment to reach 1st Quartile ROIC

26

• CHP I:
• Electricity +220MW
• Steam +420T/hr
• PRP +100KTA of Propylene
• TDAE +28KTA, 150BS +25KTA
• Lube Blending +60m.Litres./year
• EBSM +60KTA, ABS/SAN +60KTA

IRPC Key Highlight

27

 Project improvement to add initiated value  Cost saving program always be implemented: Everest Forever  Corporate Improving program: IRPC 4.0, New DNA  Commitment to Shareholders: 43%-67% payout ratio  Dividend policy: 25% payout ratio  Record fully benefit starting from 2018

• After completion of huge CAPEX: UHV and PPE & PPC
• After planned major turnaround in 1Q17 (every 5 years)

 High value Product: Specialty Petrochemical Portfolio  Strong market share and strategic target in PP & PP specialty market  Corporate Governance : DJSI bronze class level  1/3 private company receiving National Anti-Corruption Commission Integrity Awards

CG CG & &

TR TRANSPAR NSPARENCY ENCY

STR STRON ONGE GER CA CASH SH FLOW FLOW SH SHAR ARE HO HOLDE LDERS RS IN INDU DUSTR STRY UP UPTRE TREND ND

 Strong support from PP outlook  Sole producer ABS in Thailand: ABS limited capacity addition

KEEP KEEP IMP IMPROVING ROVING

Thank You

Investor Relations Contact: ir@irpc.co.th

• Tel. 02-765-7380, Fax. 02-765-7379

Presentation is available at

www.irpc.co.th

Click “Presentations”

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.

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