Q2/19 Performance Presentation 30 August 2019 1 Disclaimer This - - PowerPoint PPT Presentation

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Q2/19 Performance Presentation 30 August 2019 1 Disclaimer This - - PowerPoint PPT Presentation

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Opportunity Day Q2/19 Performance Presentation 30 August 2019 1 Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized

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30 August 2019 1

Opportunity Day Q2/19 Performance Presentation

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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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Vision and Mission

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Sustainable Development

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WORLD MEMBERS IN CHEMICALS SECTOR FOR 6th CONSECUTIVE YEAR

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Agenda

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02 01

Q2/19 Highlight Financial Result

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Overview of business unit performance

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BU Q2/18 vs Q2/19 Q1/19 vs Q2/19 Refinery Mkt GRM 6.20 -> 3.46 $/BBL U rate 101% -> 94% Mkt GRM 3.22 -> 3.46 $/BBL U rate 102% -> 94% Aromatics BTX P2F 130 -> 75 $/T U rate 94% -> 72% BTX P2F 206 -> 75 $/T U rate 94% -> 72% Olefins & Derivatives EBITDA margin 29% -> 18% U rate 104% -> 104% EBITDA margin 18% -> 18% U rate 101% -> 104%

Q2’19 net profit at 2,202 MB

  • Mkt GRM slightly increased QoQ to 3.46 $/BBL.
  • BTX P2F posted at 75 $/T. Margin soften mainly from PX spread, while
  • perating rate declined to 72% due to ARO 1 planned turnaround.
  • PE price has been under pressure from prolonged US-China trade
  • tension. However, trade off by improvement in operating rate of both

Olefins and Polymer to 104% and 101% respectively. Subsidiaries QoQ Analyzation

  • MEG performance improved driven by increasing spread and sales

volume from fully utilized operation. JV & Asso QoQ Analyzation

  • Improvement in PP business.

Table 1 : Performance Summary (Unit: Million Baht) Q2/2018 Q1/2019 Q2/2019 YoY % +/(-) QoQ % +/(-) 6M/2018 6M/2019 YoY % +/(-) Sales Revenue 128,923 112,783 106,748

  • 17%
  • 5%

249,862 219,531

  • 12%

EBITDA 18,574 11,194 5,195

  • 72%
  • 54%

34,883 16,389

  • 53%

EBITDA Margin (%) 14% 10% 5%

  • 9%
  • 5%

14% 7%

  • 7%

Share of profit of investments in JV and Associates 1,515 1,186 1,283

  • 15%

8% 3,540 2,469

  • 30%

Net Profit 10,828 6,443 2,202

  • 80%
  • 66%

23,215 8,645

  • 63%

EPS (Baht/Share) 2.40 1.43 0.49

  • 80%
  • 66%

5.15 1.92

  • 63%

Adjusted EBITDA* 15,902 9,768 7,582

  • 52%
  • 22%

32,221 17,350

  • 46%

Adjusted EBITDA Margin (%) 12% 9% 7%

  • 5%
  • 2%

13% 8%

  • 5%

Stock gain/(loss) net NRV 2,672 1,426 (1,402)

  • 152%
  • 198%

2,662 23

  • 99%

Note: * Adjusted EBITDA refers EBITDA excluding Stock gain/(loss), NRV and Extra item

1.68 0.95 1.62 1.00 1.50 1.05 1.75 1.75 1.00 1.30 2.45 1.78 1.37 1.30 1.80 2.50 2.50 45% 45% 46% 70% 61% 50% 49% 48% 52% 2011 2012 2013 2014 2015 2016 2017 2018 2019 1st Half 2nd Half Payout Ratio

Dividend

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6,443 1,725 2,198 775 203 254 2,202

Q1-19 Q2-19

Performance comparison QoQ

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Stock Gain/(Loss) & NRV&Commodity Hedge Q2’19 = (1,016) Q1’19 = 1,182 FX Gain/(Loss) Q2’19 = 692 Q1’19 = 438 Unit : MB Operating Profit from main BUs Extra Item Sharing from Subsidiaries, JV & Associate Q2’19 = 2,036 Q1’19 = 1,833

  • Overall operating profit from GC in Q2’19 was soften from Q1’19, mainly from stock loss in the period, while
  • REF performance slightly improved due to higher market GRM from 3.22$/BBL to 3.46$/BBL thanks to increasing byproduct spread.
  • ARO performance decreased due to lower P2F on BTX from 206 $/T to 75 $/T which mainly impacted by declining in PX spread since new

supply has started to plug-in and planned turnaround of ARO plant I for 53 days during the quarter.

  • OLE & POL performance decreased from lower PE sales volume, lower Olefin and PE price.
  • Subsidiary performance increased mainly driven by MEG spread improvement and increasing MEG sales volume after fully utilized in MEG

plant.

  • Sharing from JV & Associates was increased mainly from higher P2F in Polypropylene (PP) business, also sales volume growth in Bioplastics

business.

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10,828 5,459 1,231 3,924 1,374 614 2,202

Q2-18 Q2-19

Performance comparison YoY

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Sharing from Subsidiaries, JV & Associate Q2’19 = 2,036 Q2’18 = 3,267

  • Overall operating profit from GC in Q2’19 was soften from Q2’18, mainly from
  • REF performance decreased due to lower market GRM from 6.20$/BBL to 3.46$/BBL as decreasing in major product spread.
  • ARO performance decreased from lower P2F on BTX from 130 $/T to 75 $/T as PX spread declined due to increasing regional supply, while

BZ spread significantly dropped led by sluggish demand from downstream products.

  • OLE & POL performance is softening from decreasing in Olefins & PE price resulted by US-China trade tension
  • Subsidiary was decreased mainly from lower spread of both MEG and Phenol. However, partly trade off by realized performance from

acquired businesses GCMP and TPRC.

  • Sharing from JV & Associates was decreased due to lower performance of Acrylonitrile (AN) and Methyl methacrylate (MMA) businesses,

while Polypropylene (PP) performance was soften led by lower sales volume due to planned turnaround in Q2’19 and lower dividend income.

Stock Gain/(Loss) & NRV&Commodity Hedge Q2’19 = (1,016) Q2’18 = 2,908 FX Gain/(Loss) Q2’19 = 692 Q2’18 = (682) Unit : MB Operating Profit from main BUs Extra Item

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Strong Financial Position

Cash Flow Statements of Financial Position

Cash +ST Investment CA PPE Liab. IBD Share Holder’s Equity Jun 30, 2019 450 Bn Dec 31, 2018 469 Bn

  • Cash & ST Investment (34 billionTHB) and private fund of 2.0

billion THB at the end of Q2/2019

  • In Q2/2019, the interest bearing debt is 62% on fixed rate and

38% is float rate. THB debt is a major portion of 56% of our debt profile, while 44% is in USD, mainly from US Bond.

  • In Q2/2019 CAPEX still based our core investment from ongoing

projects, including ORP, Propylene Oxide and ,Polyols project.

  • The repayment profile is around 10 billion THB per year on

average but 2021 will increase from THB bond retirement (4-yr, 3.05%), as well as 2022 will increase from USD bond maturity.

  • The average loan life is ~3.10 years with average cost of long

term debt ~3.83%.

Note : Private Fund investment around 2,045 MB

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Non CA THB Bn

* *

*L/T Investment

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Agenda

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02 01

Q2/19 Highlight Financial Result

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Highlight Activities

Issuing THB Bond10,000 MB

PTTGC is to issue up to 10,000 MB bond tenor 5Y with coupon rate of 2.90%. The purpose is to refinance debt and to finance future investment 28th Jun, 2019 The company behind the symposium GC is collaborating with National Geographic, other business partners and leading educational institutions on the Circular Living. It’s a great forum to exchange perspectives and gain insights from world-renowned experts and Thai companies and individuals committed to collaboratively shaping a more sustainable world through Circular Living.

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Strategic execution

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66% 65% 58%

Olefins Reconfiguration project Propylene Oxide Project

New olefins plant Ethylene 500,000 TPA Propylene 250,000 TPA Propylene Oxide 200,000 TPA

Polyols Project

Polyols Polyether Polyols (PPG) 130,000 TPA Polymer Polyols (POP) 30,000 MTA Premix (PM) 20,000 MTA

Fully Integrated Petrochemical Value Chain

(ORP Project)

(GC 100%)

(82.1%) (14.9%) (3%) Joint Venture Company

Investment Execution

(Plan at 46%) (Plan at 60%) (Plan at 69%)

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COD Q4/20 COD Q3/20 COD Q3/20

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Strictly Confidential for PTT Internal Use Only

Thank You

1 Jittasak Soonthornpan Acting VP - Corporate Finance & IR Jittasak.s@pttgcgroup.com +662-265-8172 2 Paween Chiasakul Division Manager - IR Paween.c@pttgcgroup.com +662-265-8665 3 Nattchanon Chawinsittangkul IR Analyst Nattchanon.c@pttgcgroup.com +662-265-8364 4 Krittin Sawasdeewongsa IR Analyst Krittin.s@pttgcgroup.com +662-265-8637 5 Panit Yamprasert IR Analyst Panit.y@pttgcgroup.com +662-265-8513 6 Rattanakorn Kosakul IR Analyst Rattanakorn.k@pttgcgroup.com +662-265-8512

For further information & enquiries, please contact our Investor Relations Team at IR@pttgcgroup.com

PTT Global Chemical Public Company Limited 555/1 Energy Complex, Building A, 14th – 18th Floor, Vibhavadi Rangsit Road, Chatuchak, Chatuchak, Bangkok 10900 Thailand Tel: +66(0) 2265-8400 Fax: +66(0) 2265-8500 www.pttgcgroup.com

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