Thai Oil Public Company Limited Presentation to Investors 2006 Merrill Lynch 10 th Global Emerging Markets Investor Forum Ritz-Carlton Laguna Niguel, USA 6-8 June 2006
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Vision and Mission for 2006- -2010 2010 Vision and Mission for 2006 Vision and Mission for 2006-2010 Vision Mission � To be PTT’s flagship refinery through optimized management of the group’s refining portfolio TOP seeks to be one of the leading fully integrated � To expand facilities to better meet domestic demand refining and petrochemical companies in the region growth recognized for our sustainable growth, optimum � To enhance the competitive advantage of our power stakeholder value, and commitment to environmental generation operations to further solidify the core refining business and social well-being. � To create a high-performance organization that promotes teamwork, innovation and trust Increase Remain primarily a participation in “pure play” refiner power generation Integrate and expand Expand refining petrochemical capacity to capture business future domestic growth Continue to enhance refining margins and rationalize costs 3
Presentation Outline Outline Presentation I) Company Profile I) Company Profile II) Operational Update II) Operational Update III) Financial Performance Financial Performance III) IV) Business Outlook & Investment Projects Business Outlook & Investment Projects IV) 4
5 I) Company Profile I) Company Profile
TOP – – One of Thailand Premier Companies One of Thailand Premier Companies TOP – One of Thailand Premier Companies TOP 2 nd largest in Thailand in terms of total revenue ~ US$ 6.3 bn. in 2005. � 8 th largest market cap. ~ US$ 3.5 bn. (3% of SET) & 5 th most liquidly daily traded on SET ~ US$ 13 mn. (3% of SET). � Ranked in Forbes’ global survey among 2,000 biggest companies - one of 13 Thai companies. � Largest and most successful IPO / listing (US$ 830 mn.) on SET since PTT’s in 2001. � � Best Newly Listed Company & Most Improved Companies in Asia – 2005 � Best Newly Listed Company in Thailand – 2004 � Best IPO and Equity Deal – 2004 Highest credit-rated amongst pure-play refineries in the region. � � Moody’s Baa1 � S&P’s BBB Strong shareholder base � Free Float (Thai) 19.81% Free Float (Foreign) 23.47% Others 7.18% PTT 49.54% Note: As of 30 March 2006 6
TOP – – One of Regional Leading Refineries One of Regional Leading Refineries TOP – One of Regional Leading Refineries TOP Nationally: � � Largest, most complex & highly integrated. � The flagship refinery of the PTT group. � Advantageous site location (120 km east of Bangkok) – Total Refining Capacity = 1,037 kbd Close to the market. � Capable and experienced management / staff. TOP (220 kbd) (275 kbd) Regionally: � BCP (120 kbd) � One of the most complex in the region with TCU, HCU, FCCU, Bangkok CCR and ISOM. ESSO (170 kbd) � High operational flexibility from multiple-unit configuration. � High complexity ratios (Oil & Gas Journal / Nelson Index – 8.6). TPI (150+65 kbd) RPC (17 kbd) � Top-ranked performance in Shell’s and Solomon’s benchmarking exercise: RRC (145 kbd) � High efficiency / utilization SPRC (150 kbd) � Low cash operating cost Gulf of Thailand Well diversified earnings through significant increase in subsidiary � contributions. Source: PTIT Focus Special Annual Report 2004, except for capacity figure for RRC (based on RRC Offering Memorandum) 7
TOP ’ s Group Structure Group Structure TOP ’ s Group Structure TOP ’ s Petrochem/ Power Transportation Refinery Lube Base Oil PTT 26% JPOWER 19% Thaioil 100% 55% 100% 100% 9% (TOP) Thai Paraxylene Thai Lube Base Thaioil Power (TP) Thaioil Marine (TM) Thappline (TPX) (TLB) Capacity: Current: 220 Kbd Capacity: Capacity: SPP program A fleet of 5 oil & Multi-product Current: 348 Kt/y (PX) petrochemical Pipeline 3-on-1 Combined cycle Lube Base oil: 270 vessels with int ’ l 72 Kt/y (MX) Electricity 118 MW Capacity: 26,000 Kt/y classifications 2006: 225 Kbd Steam 168 T/hr mn. Litres/Y. 2007: 275 kbd Total capacity: approx 30,000 DWT 2007: 900 Kt/y total Utility Supply to 489 Kt/y (PX) Group 177 Kt/y (Bz) 144 Kt/y (To) 90 Kt/y (MX) Independent Power 56% (Thailand) (IPT) PTT 20% IPP program 2-on-1 Gas-fired, Thaioil 24% Combined cycle Electricity 700 MW Related Business & Core Refining Value Enhancement Product Marketing Support Operations Income Stability 8
Financial Highlights Financial Highlights Annually Consolidated Performance Net Profit by Sector 1) Subsidiaries 2) Sales Revenue EBITDA Net Profit Subsidiaries 40% 4% Bt. mn. 249,111 24% Refinery Refinery 60% 96% 2004 2005 ark: 1) Percentage was based on total am Rem ount before deducting inter-com pany transaction 184,801 2) Excluding TLB’s im pairm ent reversal of Bt 2,894 m n. Subsidiaries Subsidiaries +35% 50% 17% Refinery +11% 50% Refinery 83% Q1/05 Q1/06 Quarterly Consolidated Performance 64,859 +35% 47,942 +14% 29,003 25,494 -16% 18,753 15,073 +24% 6,338 5,351 4,086 3,691 +11% 9 Q1/05 Q1/06 2004 2005
10 II) Operational Update II) Operational Update
Recent Developments Recent Developments Subsidiaries’ Business Refinery’s Business � Maximized TPX/TLB’s operational synergy � Successfully maintained refinery intake at � Maximized TPX/TLB’s operational synergy � Successfully maintained refinery intake at with TOP through Area Production Unit. sustainable high level. with TOP through Area Production Unit. sustainable high level. � Implemented catalyst change at TPX, thereby � Completed tie-in activities for TLB’s Hot Oil Pipeline � Implemented catalyst change at TPX, thereby � Completed tie-in activities for TLB’s Hot Oil Pipeline Operation increasing productivity in Q1/05. Connection Project as well as Mercury Removal Unit, increasing productivity in Q1/05. Connection Project as well as Mercury Removal Unit, � Completed TLB’s 1 st major turnaround in ready to capture benefits in 2H/06. � Completed TLB’s 1 st major turnaround in ready to capture benefits in 2H/06. Q1/06 which enhanced plant efficiency. Q1/06 which enhanced plant efficiency. � Successfully restructured business model for � Served customer demand with higher domestic sale. � Successfully restructured business model for � Served customer demand with higher domestic sale. petrochemical sector through sale of MX unit � Acquired 24% of IPT in Mar’05 from Unocal for US$ petrochemical sector through sale of MX unit � Acquired 24% of IPT in Mar’05 from Unocal for US$ to TPX, thereby enhancing group profitability. 12.75 mn. (equiv. to US$ 76,000/MW) to TPX, thereby enhancing group profitability. 12.75 mn. (equiv. to US$ 76,000/MW) Business � Modified scope of TPX expansion project to � Completed feasibility study & risk assessment of � Modified scope of TPX expansion project to � Completed feasibility study & risk assessment of increase PX production. Ethanol project. increase PX production. Ethanol project. � TPX prepaid high-cost supplier loan of US$ � Continued prudent financial management which � TPX prepaid high-cost supplier loan of US$ � Continued prudent financial management which reduced interest & enhance returns. 20 mn. (Jan’06). reduced interest & enhance returns. 20 mn. (Jan’06). � Tremendous success in Debt refinancing (Jun’05). � Completed TPX’s refinancing in Q2/06 to � Tremendous success in Debt refinancing (Jun’05). � Completed TPX’s refinancing in Q2/06 to Finance lower interest/release security. � Repaid US$100 mn. of revolving facility (Jan’06). lower interest/release security. � Repaid US$100 mn. of revolving facility (Jan’06). � TP and TLB paid dividend of Bt. 1.25/sh. and � Paid dividend of Bt. 3.5/share (40% payout). � TP and TLB paid dividend of Bt. 1.25/sh. and � Paid dividend of Bt. 3.5/share (40% payout). Bt. 1.75/sh., respectively. Bt. 1.75/sh., respectively. 11
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