Thai Oil Public Company Limited 1 Thai Oil Public Company Limited - - PowerPoint PPT Presentation

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Thai Oil Public Company Limited Presentation to Investors Thai Corporate Day Thai Oil Public Company Limited Presentation to Investors Thai Corporate Day

Arranged by ABN AMRO Bank 20-23 March 2006 Arranged by ABN AMRO Bank 20-23 March 2006

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Vision, Mission and Strategy Vision, Mission and Strategy

Thaioil seeks to be one of the leading fully integrated refining and petrochemical companies in the region recognized for our sustainable growth, optimum stakeholder value, and commitment to environmental and social well-being

To be PTT’s flagship refinery through optimized

management of the group’s refining portfolio

To expand facilities to better meet domestic demand

growth

To enhance the competitive advantage of our power

generation operations to further solidify the core refining business

To create a high-performance organization that

promotes teamwork, innovation and trust Expand refining capacity to capture future domestic growth Remain primarily a “pure play” refiner Increase participation in power generation Integrate and expand petrochemical business Continue to enhance refining margins and rationalize costs

Vision Mission Strategy

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I) Business Overview & Update II) Favorable Industry & Investment Projects III) Financial Highlights IV) Conclusion

Presentation Outline

I) Business Overview & Update

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9% 55%

Thaioil Power (TP)

3-on-1 Combined cycle Electricity 118 MW Steam 168 T/hr

Independent Power (Thailand) (IPT)

PTT 20% Thaioil 24%

2-on-1 Gas-fired, Combined cycle Electricity 700 MW

Related Business & Income Stability Thai Paraxylene (TPX) Thai Lube Base (TLB)

Capacity: Current: 348 Kt/y (PX) Mid 07: 853 Kt/y total 408 Kt/y (PX) 160 Kt/y (Bz) 136 Kt/y (To) 149 Kt/y (MX)

Value Enhancement

Capacity: Lube Base oil: 270 Kt/y

Thaioil Marine (TM)

A fleet of 5 oil & petrochemical vessels with int’l classifications Total capacity: approx 30,000 DWT

Thappline

Multi-product Pipeline Capacity: 26,000 mn Litres/Y.

Product Marketing Support

100% 56% 100% 100%

Capacity: Current: 220 Kbd Mid 07: 270 Kbd

Utility Supply to Group

Thaioil (TOP) Refinery Petrochem/ Lube Base Oil Power Transportation

TOP Info: # of shares: 2,040 mn Mkt Cap: ~US$ 3.3bn* MktCap Ranking:10th* * As of 14 Mar 06 Shareholder structure PTT 49.54% Free float 43.28% Others 7.18%

PTT 26% JPOWER 19%

Core Refining Operations

Thaioil Group

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Accomplishment in 2005

Business/Operational

TOP - Maintenance shutdown of CDU-3 in Q1 enhanced plant efficiency by 10% and, thereby, allowed a

continuous utilization at 104% in 2005.

• An acquisition of 24% in IPT was completed in Mar’05 from Unocal for US$ 12.75 mn. (equivalent to

US$ 76,000/MW)

TPX - Change of catalyst in Jan’05 increased PX production by 20% (+60,000 tons/yr). IPT

• Completion of CT-2 replacement, consequently, allowed a full 700 MW run as from Jun’05.

Turnaround of performance of all subsidiaries post-acquisition resulted in a significant contribution to the

Group’s earnings in 2005.

All approved investment projects, e.g. CDU-3 revamp, SBM, etc., progress as planned.

Finance

TOP - Prepayment of US$ 100 mn. in Mar’05, thereby reducing interest cost by US$ 5 mn. p.a.

• Tremendously success in completely refinancing its debt in Jun’05.

Post-Refinancing (2005)

10-year Euro Bond -US$ 350 mn.

• Baa1 (Moody’s)/BBB (S&P)
• Low US Treasury benchmark @ 3.9% p.a.
• 5 times oversubscribed

7-year Term Loan (Onshore)

• Bt. 2,600 mn. & US$ 65 mn.

5-year Revolving (offshore)

• US$ 200 mn.

Benefits

Interest saving of US$ 7 mn. p.a. Diversify sources of fund Better debt profile (longer tenor, more US$,

fixed/floating rate)

More lenient covenants and removal of investment

restrictions

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Accomplishment in 2005 (cont.)

Finance (cont.)

IPT

• Successfully negotiated with creditors in Nov’05 to lower its onshore interest rate, which translated into

US$ 3.4 mn. saving over the remaining loan life.

TPX - Also successfully negotiated with creditors to restructure its loans. Signing expected by Mar’06.

Best Newly Listed Company in Asia and Most Improved Companies in Asia for the Year 2005 from

Euromoney Magazine

Best Newly Listed Company in Thailand for the Year 2004 from the Stock Exchange of Thailand Reliability Award for the Year 2004 from Shell Global Solutions International Best in Energy Conservation (Refineries & Chemical) for the Year 2005 from the Ministry of Energy

Recognitions

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764 765 712 717 738 731 83 92 82 88 90% 87% 84% 90% 85% 89%

200 400 600 800 1000 1200 Q1/05 Q2/05 Q3/05 Q4/05 2005 2004 50% 55% 60% 65% 70% 75% 80% 85% 90% Oil Demand Feed for Petrochem Net Export % Utilization rate (RHS)

Oil Production by Refinery 1)

Continued Tight Domestic Oil Demand/Supply in 2005

Domestic Oil Demand/Refinery Intake

Kbd 862 925 (Intake) 903 911 867 920

Intake (kbd) 914 230* 153 139 139 178 63 12 Utilizaton 87% 104% 90% 92% 92% 83% 53% 60%

215 145 120 120 101 59 10

TOP Ess

• RRC

SPRC TPI BCP RPC

Kbd

• Oil demand for 2005 was approx. 738 kbd, higher than last

year by 1%.

• Domestic demand in H2/05 was reduced, compared with

H1/05 due to rainy season, flooding and the impact of diesel subsidy removal in Jun’05.

• While supply remained tight, local refineries’ utilization rate

was 87% in 2005 down from 89% in 2004, reflecting major turnaround of RRC/SPRC in Oct 05.

Total Country Remark: 1)Exclude feedstock for petrochemical plant Source: Ministry of Energy and Company

108 412 337 75 125 93 2005 105 412 337 75 132 83 2004 +4% Fuel Oil (5%) Gasoline +12% LPG

• Middle Distillate
• Diesel
• Jet Fuel

+/(-)

Oil Demand by Products Volume (Kbd)

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Improved Utilization in 2005

• Refinery’s intake remained at 104% of capacity due to strong requirement from offtakers and high plant efficiency.
• TPX’s utilization improved to 97% (+18 %), following a change in catalyst in Q1/05 which increased PX production by 20%.
• TLB’s utilization decreased to 71% due to shutdown in Q1/05.
• IPT’s availability rose to 77% after CT-1 resumed the full 700 MW since Jun’05.
• TM’s utilization rose to 92% in 2005 due to more effective fleet management, disposal of 2 vessels, coupled with high

demand in chemical and oil transportation. % YoY 97% 77% 77% 91% 41% 82% 79% 104% 92% 92% 71% 104%

0% 20% 40% 60% 80% 100% 120% Refinery TPX TLB IPT TP TM

2004 2005

10

30 40 50 60

J 2 4 M M J S N J ' 5 M M J S N

80% 75% 6% 6% 14% 19% 17% 11% 60% 54% 56% 30% 10% 33% 29%

With multiple cracking and treating facilities, Thaioil has flexibility to select most economical crude capitalizing on the favorable sweet and sour differential to optimize refinery operation. 2005 Average Oil Prices-MOPS (US$/bbl) Up to 80%

• f crude from Middle East (whose prices

are more attractive than Far East sweet grade) are normally processed. Middle distillate was produced to meet local demand (represents about 54%

• f country's demand).

US$/bbl

Tapis Dubai

64.03 64.03 Diesel Diesel 0.5% 0.5% 8.57 8.57 TP TP-DB DB 40.31 40.31 67.63 67.63 62.09 62.09 49.32 49.32 57.89 57.89 Fuel Oil Fuel Oil Jet Jet ULG 95 ULG 95 Dubai Dubai Tapis Tapis

Thaioil’s Crude Mix and Oil Product Yield

Middle East Far East Heavy Light Distillate Middle

2005

Others

2004

Crude Product Domestic Demand

2005

Flexible Configuration Allows for Complex Margin Optimization

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Export, 12% PTT, 46% Shell/Caltex, 13% TPX 3% BCP 6% BCP 4% TPX 11% Shell/Caltex, 14% PTT, 49% Export, 14%

Including 7% export of PTT

Domestic Independent, 15%

Excellent Relationships with Customers

2005

Sales to major oil companies (PTT, Shell and Caltex) increased by 4% due to growing retail market shares at the expenses of sales to independent customers. Sales to TPX also rose to 11% caused by an increase in volume of platformate sales after sales of MX unit to TPX in Q2/05. Since domestic demand became weaker from rainy season and high oil price in Q3/05, Thaioil switched to focus on exporting more jet fuel at the expense of diesel due to its more favorable price. In conclusion, total sales rose by 9% in 2005. (Domestic:Export = 86:14)

Including 1% export of PTT

Domestic Independent, 21%

Total Sales 14,351 Mn. L/year (+ 9%) 2004 Total Sales 13,182 Mn. L/year 2,040 (14%) 681 (18%) 700 (18%) 371 (10%) 288 (10%) 2005 556 (16%) Q4 308 (9%) Q1 1,594 (12%) 331 (11%) 398 (12%) 2004 FY Q3 Q2

Thaioil’s Export Sales (Mn. L)

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II) Favorable Industry & Investment Projects

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2 4 6 8 10

2 0 3 0 4 0 5 0 6 0 7 0 8 0

J a n ' 4 M M J S N J a n ' 5 M M J S N J a n ' 6 M

TOP’s GRM and Oil Prices Movement

Oil Price Movement

Strong demand and tight supply supported high oil prices during the first 9M/05. Hurricanes in US fueled gasoline, diesel and other oil prices in Q3/05. Regional GRM was pressured in Q4/05, due to warmer winter in US, high inventory level, high VLCC freight as well as lackluster demand after subsidy removal in certain countries. Recently product market tighten up due to cold weather and decline stock from planned shutdowns of the refineries in the US and Japan.

Thaioil’s Integrated GRM

Remark: MX unit sold to TPX since 1 April 2005

US$/bbl

Diesel Gasoline Tapis Oman Fuel Oil

US$/bbl

Q1/05 Q2/05 Q3/05 FY/04 FY/05

8.75 6.55 8.52 7.50 6.62

Q4/05

3.00

~7.50

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Kbd 2004P 2005F % Growth 2010 % Annual Growth (2005-10) China 6,105 6,470 +6.0% 8,494 +5.6% Japan 5,090 5,073

• 0.3%

5,031

• 0.1%

India 2,318 2,412 +4.1% 2,906 +3.8% South Korea 2,218 2,253 +1.6% 2,441 +1.6% Thailand

(1)

731 768 +5.0% 930 +4.1% Tl Demand 22,583 23,311 +3.2% 27,433 +3.3% Tl Supply 22,786 23,096 +1.4% 26,710 +3.0%

Kbd 2005 2006 2007 2008-10

China

60 466 640 880

India

208 115* 280 620

Indonesia

– 100 – 150

Thailand1)

– – 50 –

Taiwan

42 – 42 –

Pakistan

– – – 150

Vietnam

– – – 121

Total addition

310 681 1,012 1,921

Regional Oil Demand/Supply Continue to be Tight

Note: Excluding Middle East dem and & refining capacity additions Exclude 220 kbd expected to com e on stream in end Q4/06

Asia Pacific Refinery Capacity Additions Regional Oil Demand Asia-Pacific Demand/Supply Additions

728 1,536 2,369 4,840 310 991 2,003 3,924

2005 2006 2007 2008-10

Accum Demand Additions Accum Supply Additions

• Regional demand (FACTS in Oct’05) might not have taken

into account the weaker-than-expected demand in Q4/05 partly due to subsidies removal/reduction in many countries.

• China’s 2004 demand growth (15%) decelerated in 2005 (to

3.5%), while its GDP grew by 9%

• Decoupling of GDP growth & oil consumption (in China &
• ther countries) could not sustain.
• FACTS’s forecasted capacity additions could also prove
• ptimistic, in view of the tight construction market.
• Regional oil demand/supply is believed to continue to be

tight.

• Furthermore, countries across Asia Pacific are moving

towards more stringent product spec, which fuels shortage

• f supply situation.

Kbd

Source: FACTS, Fall 2005 and 1)Com pany

120*

Note: *120 kbd was shifted from 2005 to 2006.

IEA: 2.6% Actual

15 Global & Regional PX demand is expected to grow continuously, especially from China where demand growth of 6% is forecasted. Domestic PX demand will increase to 1,750 Kt/Yr in 2006 after completion of the new Indorama’s PTA plant. TPX expansion project, which is designed to increase PX and total aromatics production from 348 to 408 Kt/yr and 420 to 853 Kt/Yr respectively, will be completed in mid 2007.

Prospects of PX Expansion

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2004 2005 2006 2007 2008 2009 2010 KTPA TPX Exxon ATC Demand

Source: The Company

Operating rate Capacity Other S.E. Asia N.E. Asia Europe South America North America

%capacity utilization

World PX Production

Plat PX MX

200 400 600 800 1000 1200 J04 M M J S N J05 M M J S N J06 M US$/Ton

PX-MX PX-Plat

PX, MX and Plat Spread Domestic PX Supply and Demand

MX Unit w as sold to TPX in Apr’05.

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Lube Base Business and Growth Lube Base Business and Growth

100 200 300 400 500 600 700 1999 2000 2001 2002 2003 2004 2005

US$/Ton

HSFO 500SN

LUBE BASE PRICE

2000 2005 2010 2015 2000 2005 2010 2015

Region

REST OF WORLD W.EUROPE ASIA-PAC NORT H AMERICA

Global B ase Oil Market Demand by

BASE OIL Global Demand Global Base Oil Market

Demand by Tier

GIII GII GI

WORLD BASE OIL MARKET

Global & Regional Base Oil demand is increasing, while supply of Group 1 Base Oil is relatively tight due to permanent shut-down of some Group 1 Base Oil plants in Asia. The spread between Lube Base and HSFO prices has been widen since 2004. It is forecasted to be peaked in 2006 and gradually come down due to new capacity addition. According to plan, after integration with TOP, TLB plant can be operated at higher capacity and produce higher quantity and better quality products. Other synergy projects are under study such as:

• Hot Oil Project increase refinery intake by 5kbd
• Higher MPU intake
• Change catalyst to increase lube base yield
• Specialty lube base products, etc.

17 US$ mn. Total In 2005-07 CDU-3 Debottlenecking 218 Mercury Removal Units 8 SBM Expansion 150 Power Projects 43 Maintenance Projects 45 TPX (Expansion) 115 TLB (Synergy Projects) 10 Thaioil Marine 12 Total 601

Size: 50 kbd (additional 23%) EPC: ABB PMC: Foster Wheeler Investment Cost: US$ 4,000/bbl Expected C.O.D : Mid 2007 Size: 52”diameter * 14.5 km long pipeline EPC: SAIPEM PMC: Bechtel Expected C.O.D: Mid 2007 Benefit: Freight saving Size: 433,000 tons/yr (additional) Expected C.O.D: Mid 2007 Benefit: Margin based on aromatics (BTX) over ULG95 For example, TLB/TOP Hot Oil Exchange Cost: US$ 3 mn Benefit: Enhance CDU-1 feed by 5 kbd Expected C.O.D: Mid 2006

Investment & Expansion Projects

Note: exclude new IPP and Ethanol Projects

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0.5 1 1.5 2 2.5 3 3.5 2011 2012 2013 2014 2015

'000 MW

Opportunity for Expansion in Power Business Opportunity for Expansion in Power Business

• Invitation to bid for new IPP project is postponed to 2007 due to

trimmed demand from high oil prices in 2005 and Tsunami effect which force the government to adjust the demand projection and structure of fuel sources.

• TOP is a very advantages position given infrastructure

available for an additional 2x700MW power plants:

• Land of 100 Rais (40 acres)
• 28” natural gas / raw water pipeline
• 230 KV transmission lines and available diesel oil storage

facilities for back up

Thailand Electricity Power Generating Capacity

Source: EGAT Plc.’s PDP (August 2004) and EGAT Plc.’s Prospectus

New Power Capacity Allocation EGAT Plc. Private Players

5 10 15 20 25 30 35 40 45 50 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ‘000 MW 50 100 150 200 250 MWh EGA T Plc. Private EGCO+RA TCH Import New Private Supply

4 3 3 4 4 # of blocks

• TOP is expected to have an opportunity in bidding

for the new IPP concessions from 2011-2015.

18*700 MW new plants

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Rationales TOP Ethanol Project Background

Government plans to phase out MTBE by early

2007 and Ethanol will be used as oxygenated component.

Insufficient domestic Ethanol supply due to high

production cost and insufficient Ethanol plant capacity

Abundant feedstock (Tapioca Chips)

New Developing Project - Ethanol

Ethanol Capacity: 1 mn. L/day Feedstock-Tapioca Chips: 0.85 mn. tons/yr.

• Est. Investment Cost:

US$ 200 mn.

• Est. Project IRR:

> 20% Project Development Period: 2 yrs. Location: Central Part

Government promotion Supply of raw material is abundant because Thailand is the world largest tapioca chips exporter Thailand exports more than 3 mn. tons/yr, which can be used for Ethanol production of ~ 3.5 mn. L/day Tapioca chips’ price and availability is less volatile, compared with other feedstock (e.g. molasses) Low cost production due to economy of scale

Under Detail Study and Risk Assessment Decision to Invest within Q2/06

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III) Financial Highlight

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Consolidated (Bt. mn.) 2005 2004 +/(-) Sales Revenue 249,111 184,801 +35% EBITDA 29,003 25,494 +14% Operating Profit 20,297 17,498 +16% FX Gain/(Loss) (1,032) 542 (290%) Tax (3,406)1) (2,967) +15% NP b/f Special Item 15,859* 15,073 +5% Special Item2) 2,894

• +100%

Net Profit 18,753 15,073 +24% EPS* (Bt/share) 9.19 7.82 18%

Remark: 1)Effective tax rate for 2005’s taxable income was 18% p.a.

2)Special item = TLB’s impairment reversal in Q4/05 of Bt. 2,894 mn. *Reflected weighted average No. of shares of 2,040 mn. shares

in 2005 and 1,927 mn. shares in 2004

Financial Highlights - Consolidated

Transportation 1% Petrochem/ Lube Base2) 35% Refinery 60% Power 4%

Transportation

• 1%

Petrochem/ Lube Base 3%

Refinery 96%

Pow er 2%

+24%

Net Profit1)

2005 2004 Transportation 0% Petrochem/ Lube Base 21% Refinery 70% Power 9%

Transportation 0% Petrochem/ Lube Base 2%

Refinery 92%

Pow er 6%

+14%

2005 2004

EBITDA1)

Rem ark: 1)Percentage was based on total am

• unt before deducting inter-com

pany transaction

2)Excluding TLB’s im

pairm ent reversal of Bt 2,894 m n.

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Sales Revenue: 14,206 EBITDA: 1,767 Net Profit: 4,646 Assets: 8,656 Sales Revenue: 3,107 EBITDA: 790 Net Profit: 472 Assets: 7,320

55% 100%

Sales Revenue: 246,213 EBITDA: 20,606 Net Profit: 9,596 Assets: 110,123

Group Financial Result Contribution Group Financial Result Contribution

Unit: in Bt. mn

100% 100%

Thaioil (TOP)

Thaioil Power (TP) Thai Paraxylene (TPX) Thai Lube Base (TLB) Thaioil Marine (TM) Independent Power (Thailand) (IPT)

Sales Revenue: 8,042 % of Sales Rev : 2.6% EBITDA: 1,638 Net Profit: 443 Assets: 12,569

56%

Sales Revenue: 32,127 EBITDA: 4,376 Net Profit: 3,670 Assets: 13,233 Sales Revenue: 691 EBITDA: 82 Net Profit: 84 Assets: 635

24%

2) 1) Reflected sale of MX Unit to TPX as from A pril 2005. 2) Included special item of Bt 2,894 million 1) 1)

Consolidated figures: Sales Revenue: 249,111 EBITDA: 29,003 Net Profit: 18,753 Assets: 124,169

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Financial Strength

Balance Sheet

2,486

3,028

Dec’02 Dec’04 Current Assets Non- current Assets Other Liabilities Total Equities

Unit: US$ mn.

2,816

Dec’05

2,462

Dec’03 Long-term Debts

1,564 1,279 982

874

Since 2002

• Total Assets:

up ~Bt 23 bn (+23%)

• Total LT Debts:

down ~Bt 28 bn (-44%)

• Total Equities:

up ~Bt 26 bn (+70%)

Key Financial Ratios

3.0 4.8 11.2 13.6 6.5 3.5 1.3 0.8 0.4 1.2 2.1 0.6 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2002 2003 2004 2005 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0

ICR Net Debt/EBITDA Net Debts/Equity

Interest Coverage Net Debts/Equity Net Debts/EBITDA

Remark: Convert by 41 Baht/US$

• Net Debts/Equity

<= 1.0x

• Net Debts/EBITDA

<= 2.5x

Treasury Policy

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Group Debt Structure & Dividend Policy

Dividend policy is at least 25%

• f net profit

after legal reserve. FY2004 FY2005 Dividend (Bt/Share) 1.80 3.50 Payment May’05 May’06 Dividend Yield (% ) * 3.5 5.5 Payout Ratio (% ) 25 40

* calculated from the closing price of year-end

Dividend Policy

Consolidated Repayment Profile Consolidated Repayment Profile

10-Year Bullet Bond

US$ 350 mn @ coupon 5.1%. (Moody’s Baa1 / S&P’s BBB)

5-Year revol ving US$

Loan: US$ 200 mn

6-Year syndicated

• nshore l oan (US$ 65

mn + THB 2,600 mn.)

Consolidated Long Term Debt Profile

• Total LT Loan is 83% in USD to match with USD-

linked revenue.

• Total fixed interest is appx. 50% of total borrowing.
• Average cost of debt is appx. 6% p.a. (before

corporate tax)

TOP 72% ($629 mn) TLB & TM 0% IPT 18% ($156mn) TP 3% ($27mn) TPX 7% ($62 mn)

112 224 379 59

100

100 200 300 400 1 Yr 2-4 Yr 5-7 Yr 8-10 Yr

US$ mn

Prepayment US$ 100mn in Jan’06

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Cash Flow : January - December 2005

(8,542)

Change in assets & liabilities

28,946

Net income & non-cash adj.

20,404 Operating Cash Flow

• Bt. mn

(4,377)

CAPEX (PP&E)

670

Other investment

(3,707) CAPEX & Investment

+

(3,799)

Dividend payment

25,597

Refinancing (Loan & Bond)

(2,112)

Interest

(31,799)

Repayment

(12,113) Financing

Free Cash Flow 16,679

Beginning Cash

6,667

Net Increase in Cash

4,584

Ending Cash

11,251*

+ = +

*Used for Thaioil’s loan prepayment of US$ 100 mn. in Q1/06

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IV) Conclusion

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Conclusion

• The year 2005 marks another record year for Thaioil, driven mainly by
• high oil prices, fuelled by geopolitical tensions & harsh weather
• tight demand/supply of regional refining capacity
• successful refinancing, and
• significant turnaround/contributions from subsidiaries, resulting from business restructuring &

synergy within the group

• All approved and developing investment projects are going forward to lay down a foundation for sustainable and

strategic growth

• Outlook for 2006 remains favorable, notwithstanding recent volatility of GRM’s, due to: –
• inability of regional supply (refining capacity) to keep up with growing demand, fuelled by continuing

economic expansions in the region

• TOP’s highly complex and integrated facilities, which allow it to continue to capitalize on sweet-sour

crude price differential

• synergy projects amongst group companies, which will further enhance yields of TOP (+5kpd) and

subsidiaries (e.g., TLB catalyst change), ahead of the completion of debottlenecking in 2007, and

• continuous robust contributions from subsidiaries

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CONFIDENTIA L – NOT FOR DISTRIBUTION, NOT A N OFFER OF SECURITIES

The information contained in this presentation is intended solely for your personal reference only. Please do not circulate this material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any action in reliance upon it.

Disclaimer

THANK YOU

Any further questions, please contact Investor Relations Dept. Tel: (662) 299-0124 Fax: (662) 617-8295 Email: ir@thaioil.co.th Website: www.thaioil.co.th

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Appendix

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Aerial View of Facilities Land area ~ 777 acres (1,963 rais)

TPX TPX IPT IPT TLB TLB TP TP

Taken 9 September 2004

Thaioil

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Strategic Location

The site is in the Eastern region, 124 km from

Bangkok

Has 2 mooring facilities for crude receiving and

product export

Close to market by connecting to multi-product

pipeline

Has space available for future expansion

Source: Ministry of Energy 2003

9% 10% 59%

11% 11%

SAR ABURI LUMLUKKA DONMUANG SUVARN ABHUMI Esso

GULF OF T HAILAND

Shell (RRC) Caltex (SPRC) MAP TA PHUT SRIRACHA

Ø24”, 134 km Ø18”, 38 km Ø10”, 29 km Ø18”, 92 km

Main Line Expansion Pipeline SBM Facility

Domestic demand distribution THAIOIL

Bangchak TPI

SBM

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CDU-1 CDU-2 CDU-3 TCU 19,300 HCU-1 FCCU 10,300 CCR-1 HDT-1 KMT 2,400 HDS-1 LPG ULG 95 JET KEROSENE GAS OIL ULG 91 HCU-2 47,600 CCR-2 50,000 HVU-1 HVU-2 HVU-3 95,000 HDT-2 HDT-3 74,900 205,000 FUEL OIL HDS-2 HDS-3 74,000 MX MX* 34,300

Thaioil Refinery Simplified Process Diagram

Crude

Distillation/Separation Conversion/Upgrading Treating

Long Residue LVGO Gas Oil Kerosene CDU Overhead Short Residue TC Residue TC Waxy Heavy Cycle Oil HC Gas Oil Heavy Naphtha Platformate LPG Light Plat Light Cycle Oil HC Kero Waxy CC Gasoline ADIP Isomerate NGL 72 RON Mixed Xylene 50 RON 70 RON ISOM 21,500 Waxy IN-LINE BLEND BATCH BLEND Light Naphtha Imported LR TC Kero/GO 95 RON 103 RON 89 RON 91 RON

*Sold to TPX in Apr’05

34

70% 67% 40% 39% 39% 38% 31% 24% 24% 18% 18% Thaioil Caltex Australia Singapore Petroleum Reliance BPCL S-Oil Indian Oil SK Corp ESSO Malaysia Petron Zhenhai Refining

One of the Most Complex Refineries in Asia Pacific

(%)

Thaioil can meet new environment specifications at lower cost

Upgrading-to-Refining Ratio(1)

Source: 2004 Oil and Gas Journal and Company (1) Hydrocracking, catalytic cracking, thermal cracking, catalytic reforming and isomerization capacities divided by total crude distillation capacity (2) Hydrocracking, hydrotreating and hydrodesulfurization capacities divided by total crude distillation capacity

Hydrotreating-to-Refining Ratio(2)

Higher conversion ratios yield higher refining margins

(%)

92% 65% 43% 43% 42% 41% 29% 27% 22% 18% 9%

Thaioil S-Oil Singapore Petroleum BCP SK Corp ESSO Malaysia Petron BPCL Caltex A ustralia Zhenhai Refining Indian Oil

57%

• Add. 50 kbd

by Mid 07

(%)

71%

• Add. 50 kbd

by Mid 07

35

One of the Best Performing Refineries in the World

Operating Cost Index Annualized Maintenance Costs Maintenance Effort (Based on Headcounts)

• Avg. Personnel Cost

Shell Personnel Index (Based on Headcounts) CEL Corrected Energy Loss Utilization Operational Availability

2003 2004

High maintenance effort and Personnel Index is offset by low labor costs.

Shell Worldwide Annual Benchmarking

Peer group comparisions 1st Tercile 2nd Tercile 3rd Tercile Centre: Less opportunities Outside: More opportunities

36

100 100 100 100 100 100

10% 16% 21% 21% 11% 23% 60% 50% 56% 56% 66% 58% 34% 23% 23% 23% 19% 30%

MX ISOM PU 2 CCR HCU HDS FCC TCU 3 CDU CCR HCU HDS TCU CDU PU CCR HDS FCC 2 CDU CCR RFCC CDU ISOM FU DCC Cond. Splitter CDU PENEX PU HDS 2 CDU

Excellent Position With Respect to Domestic Competition

• Thaioil has the largest and most sophisticated refinery capacity in Thailand.
• Various conversion units enable Thaioil to maximise middle distillate production, which represents the majority of Thai

market demand, and provides significant flexibility in the use of feedstocks. Middle Heavy Light

Major Refineries in Thailand with Respect to Capacity and Market Share

220 kbd (21% ) 170 kbd (16% ) 150 kbd (15% ) 150 kbd (15% ) 215 kbd (21% ) 120 kbd (12% )

Complexity and Product Yield Thaioil Esso RRC SPRC TPI BCP

Source: Ministry of Energy

37

Integration among Thaioil Group

Long Residue 850,000 T/yr By-products

• N. Gas

28 mmcfd

• N. Gas

120 mmcfd Reformate 1.5 mn T/yr By-Products Lube Base Oil 41 MW 50 MW 84 T/hr 10 MW 40 T/hr 11.5 MW 42 T/hr 700 MW Finished Products PX

TLB

270 Kt/y

Alternative Sources

TOP

220 KBD

TPX

348 Kt/y

Alternative Sources

Domestic 86% Export 14% Domestic 77% Export 23% Domestic 41% Export 59%

PTT

EGAT

IPT

700 MW

TP

118 MW

38

Plant Availability Development

In 1995, IPT won mandate from EGAT (1 st ranked among 32 bidders). Technical problems with Westinghouse CTs. Replaced with Siemens GTs in 2003 and 2005. IPT declared 700 MW as from Jun’05.

77% 70% 78% 57% 48% 41%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2000 2001 2002 2003 2004 2005

700 MW from Jun’05

* In year 2001, IPT report net profit of Bt. 813 mn. with 78% utilization rate.

IPT

Availability Rate

Financial Highlights

+744 (301) 443 Net Profit +989 649 1,638 EBITDA +/(-) 2004 2005 (Bt. mn.)

On 19 January 2006, IPT experienced technical fault at

transformer causing forced outage of CT-1. IPT’s dispatching reduces to 320 MW.

The transformer has been sent to manufacturer in

Japan, for repair, which is expected approx. 6-8 months.

IPT expects to receive insurance compensation for

property damage and business interruption.

Net exposure to IPT after deducting insurance

compensation is approx. Bt. 260 mn.

IPT’s Recent Transformer Incident