PTTGC Opportunity Day FY 2017 Performance 7 March 2018 The Stock - - PowerPoint PPT Presentation

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PTTGC Opportunity Day FY 2017 Performance 7 March 2018 The Stock - - PowerPoint PPT Presentation

PTTGC Opportunity Day FY 2017 Performance 7 March 2018 The Stock Exchange of Thailand BECAUSE THERE IS NO PLANET B Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those


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BECAUSE THERE IS NO PLANET B

PTTGC Opportunity Day FY 2017 Performance

7 March 2018 The Stock Exchange of Thailand

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This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. PTTGC has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and PTTGC does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

Disclaimer

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Strategic Direction FY2017 Financial Results

Agenda

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Successfully in GGC IPO

(2nd May 2017)

Resell of Treasury Stock MAX achieved target

(6,704 MB run rate in 2017)

CLMV market expansion

i.e. JV in Myanmar

PSM & Reliability Investment execution

i.e. Asset injection, PO/Polyols, ORP

2017 Key Achievement

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Issued 10 billion THB Bond

(4 years with 3.05% )

Digitization roadmap

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Overview of Business Unit’s Performance

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Refinery Aromatics

Olefins & Derivatives

Improvement in product price and margin

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Refinery Aromatics Olefins & Derivatives

Reliability and efficiency improvement

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Performance 2016 VS 2017

  • 2017 Adjusted EBITDA and net income increase 35% and 53% yoy , respectively. This mainly from

increasing in operating rate and margin

  • REF GRM $6.74/bbl (+27%), BTX P2F$226/T (+22%) , HDPE price $1,168/T (+3%) and MEG spread $305/T

(+180T. Although, there are both olefins and aromatic plant T/A but able to maintain high operating level.

  • The performance is also support from full year benefit of MAX project and market improvement of

newly acquire business in PTTAC and HMC. However, partial offset by impairment of investment.

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Y2016 (A) Y2017 (A)

Stock Gain & NRV&Commodity Hedge Y2017 = 1,383 Y2016 = 3,690 FX Y2017 = 2,301 Y2016 = 933 Unit : Baht MB Project MAX Y2017 = 2,919 Y2016 =277 Operating Profit from BAU Extra Item Sharing from JV & Associate Y2017 = 3,360** Y2016 = 456**

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2018 Performance Outlook

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104% 99% 91% 100% Polymer Olefins Aromatics Refinery

Operating Rate

In 2018, the major plant are anticipated to run at maximum rate as only OLE 1 will have 1 month T/A in Q3.

Refinery

  • Dubai range is expected to be $60-65/bbl Expected

GRM at $6.6/bbl, support by improving in demand of middle distillate from recovery of economics activities and cold weather

Aromatics

  • PX & BZ spread $365/T and $310/T, respectively,

support from demand of downstream product i.e. polyester, SM and phenol and delaying of new capacity will support the price trend in this year.

Olefins & Derivative

  • Olefins is support from high ethane flow (expected >

270 T/H) and price is support from surge in oil price and delay of new capacity

  • Polymer and MEG are foreseen the limited of

downside risk on PE price from delay of new supply and ban of recycle grade in China, expect HDPE $1,243/T and MEG ASP $952/T.

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Strategic Direction FY2017 Financial Results

Agenda

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Strategic Direction

Sustain Core Accelerate Growth levers Balance Business & Social Value To be a Leading chemical company for Better living

  • International hub
  • Performance chemicals
  • Green business
  • Sustainable development
  • Effective CSR programs
  • Stakeholder management

Business Competitiveness

  • Project MTP retrofit

Olefins Reconfiguration

  • Project MAX

Improve productivity

  • Project Asset Injection

Enhance business clarity & Maximize integration

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2017 Development in Economics Contribution

Completion of Asset Injection on 3rd July with final transaction value of 25,061 MB. FID of PO & Polyols Project in August CAPEX : $888 million

Achieved 2017 run rate target

FID of Olefins Reconfiguration Project Configuration  Ethylene 500 KTA  Propylene 250 KTA  Feedstock : Naphtha & LPG Schedule  FID : January 2018  COD : 2H20  CAPEX : $985 million

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2017 2018 2020 2019 mLLDPE (434 KTA) PO/Polyols (330 KTA) MTP Retrofit (750 KTA) ME Plant 2 (200 KTA) HDI Derivative Thailand (12 KTA) Asset Injection (1,060 KTA)

Consistent Volume Growth

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EO-Based Derivative

i.e. HOA in Softanol

Performance Chemical in C4 Chain i.e.

HOA in PA9T, HSBC

Expansion Olefins & derivative i.e.

Signed HOA on US petrochemical project

Performance Chemical in Olefins chain Biocomplex

i.e. HOA of GGC

Potential investment and project under study Committed investment project

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Thank You

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1 Thitipong Jurapornsiridee VP-Corporate Finance & IR Thitipong.j@pttgcgroup.com +662-265-8574 2 Jittasak Soonthornpan IR Manager Jittasak.s@pttgcgroup.com +662-265-8172 3 Nattchanon Chawinsittangkul IR Analyst Nattchanon.c@pttgcgroup.com +662-265-8364 4 Pantaree Nantanakom IR Analyst Pantaree.n@pttgcgroup.com +662-140-8714 5 Jinthip Prakobwit IR Analyst Jinthip.p@pttgcgroup.com +662-265-8361 6 Preeyapa Asarangchai IR Analyst Preeyapa.a@pttgcgroup.com +662-265-8213