Thai Oil Public Company Limited Q2/19 Opportunity Day Presentation - PowerPoint PPT Presentation

-1- Thai Oil Public Company Limited Q2/19 Opportunity Day Presentation 2 September 2019 Time : 15.20 - 16.20 hrs. Venue : SET building, 6th floor, Meeting room 603

-2- -2- Disclaimer The information contained in this presentation is intended solely for your personal reference. 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. Some statements made in this material are forward-looking with relevant assumptions, which are subject to uncertainties, which may cause the actual result/performance to be materially deviated from any future result/performance implied by such forward-looking statements. Please note that the company and management/staff are not capable to control and guarantee if these forward-looking statements will be accurately materialized, they are subject to various risks and uncertainties.

-3- -3- Corporate Vision, Mission and Values Empower Human Life VISION through Sustainable Energy and Chemicals • To enrich stakeholders’ well -being and deliver sustainable returns MISSION built upon innovation, technology and resilient portfolio with top class management and accountable corporate governance Professionalism Excellent Striving Vision Focus VALUES Ownership & Commitment Initiative Social ResponsibilityIntegrityTeamwork & Collaboration

-4- -4- Corporate Governance Corporate Governance Policy Roles and Responsibilities The board of directors, management and all staff shall for Stakeholders commit to moral principles, equitable treatment to all stakeholders and perform their duties for the company’s interest • Truthfully report company’s with dedication, integrity, and transparency. situation and future trends to all Anti-Corruption Policy stakeholders equally on a timely manner. The Board, the management, and employees must not • Shall not exploit the confidential corrupt or accept corruption of all forms in any circumstances, covering the business of the Company in every country and in information for the benefit of every relevant agency. The Company defines guidelines, related parties or personal gains. operating measures, and roles and duties of responsible • Shall not disclose any confidential persons, as well as regularly monitoring and reviewing the information to external parties. implementation of the anti-corruption policy in compliance with changes in businesses, rules, regulations, and relevant laws. Whistle-Blowing Channels Chairman of the Board or cgcoordinate@thaioilgroup.com Chairman of the CG Committee or Should you discover any Chairman of the Audit Committee or +66-0-2797-2999 ext. 7440-7442 ethical wrongdoing that is CEO/President or Company Secretary not compliance to CG +66-0-2797-2973 Thai Oil Public Company Limited policies or any activity that 555/1 Energy Complex Building A could harm the Company’s http://www.thaioilgroup.com 11F, Vibhavadi Rangsit Road, interest, please inform: Chatuchak, Bangkok 10900

-5- -5- Our Achievement in Sustainable Development 6 th Consecutive Year as the Member of DJSI Emerging Markets and high ranked positions.

-6- -6- Presentation Agenda TOP GROUP BUSINESS OVERVIEW Q2/19 KEY HIGHLIGHTS Q2/19 PERFORMANCE ANALYSIS Q4/19 MARKET OUTLOOK

-7- -7- TOP GROUP BUSINESS OVERVIEW

-8- -8- Thai Oil Group Business Structure PTT 26.0% 100.0% 100.0% 74.0% 100.0% 100.0% Thai Paraxylene Thai Lube Base Thaioil Power Thaioil Marine Thaioil Ethanol Thaioil (TOP) (TPX) (TLB) (TP) (TM) (TET) 50.0% Aromatics Capacity: Lube Base Oil Sells Electricity/Steam to • 5 Oil & Chemical Tankers Sapthip (SAP) Paraxylene Capacity : Group Capacity : 22,800 DWT Capacity : 527,000 tons/annum Cassava Based Ethanol Base Oil • Crude Tankers: 3VLCCs 275,000 barrels/day Small Power Producer Mixed Xylene Capacity : 200,000 lts/day 267,015 tons/annum Capacity: 881,050 DWT Program 52,000 tons/annum Bitumen BCP 14 crew & utility boats Others • 3-on-1 Combined Cycle Benzene 350,000 tons/annum 21.3% (120 DWT each) 21.3% 57.4% Electricity 118 MW 259,000 tons/annum TDAE • 2 Large vessels for crude, Ubon Bio Ethanol (UBE) Steam 216 tons/hour Total 838,000 tons/annum 67,520 tons/annum feedstock & product Cassava/Molasses Based Plant storage and transportation Capacity : 400,000 lts/day TOP SPP 75.0% Mitsui 25.0% services capacity: 200,000 100.0% 100.0% DWT 2 Small Power Producers LABIX Company Limited Thaioil Energy Services • Ship management services Total capacity: 239 MW (LABIX) (TES) Steam capacity 497 T/H PTTOR 40.4% LAB producer and distributor Proceeds the business on COD 2016 Capacity: 120 KTA COD: 2016 9.2 % Others 50.4% various professional of Thaioil & management services TP 29.7% 100.0% 100.0% PTT 22.6% Thappline (THAP) Thaioil Treasury Center (TTC) PTTGC 22.7% Multi-product Pipeline Global Power Synergy Enhance financial efficiency, Capacity:26,000 m.lts/y Thaioil Solvent Public Company Limited Investment in CVC/Start-up Through TOP Solvent (TS) PTT Group 85.0% 15.0% Principal power plant of PTT Sarn Palung Social PTT 40.0% 80.5% 100.0% Total Equity Capacity Enterprise PTTGC 20.0% 20.0% 5,026 MW of electricity IRPC 20.0% Supports execution of social Solvent distribute Sak Chaisidhi Top Solvent 2,876 tons/hour of steam PTT Energy Solutions enterprise of PTT group in Thailand (SAKC) Vietnam 7,372 Cu.m./hour of Industrial (PTTES) PTT Group 80.0% 20.0% Solvent manufacturer water Solvent distribute in Provides engineering PTT Digital Solutions Capacity : 141,000 15,400 RT of Chilled water Vietnam technique consulting services (PTT Digital) tons/annum Refinery Net Profit Contribution Aromatics 51% 24% 13% 12% Lube Base (Avg. from 2006 – Q2/19) Others

-9- -9- Q2/19 KEY HIGHLIGHTS

-10- -10- Key Highlights Q2/19 Key Market Drivers Highlights  Soften refinery margins pressured by higher crude premium due to Refinery Implication supply tightness as OPEC’s production cut and soften middle distillates 1) Mkt GRM at 2.6 $/bbl margin due to higher inventory and lower demand. But negative impact (Q1/19 = 3.0 $/bbl) was partially offset by improved gasoline spread due to higher demand 1) Include Margin and Productivity from U.S. driving season and rising demand in Middle East ahead of Improvement 2) Ramadan (0.2) $/bbl inventory loss  Lower crude price pressured by U.S. - China trade war and increasing (from stock gain 2.7 $/bbl in Q1/19) U.S. oil production 2) Based on refinery intake Aromatics & LAB Soften Aromatics & LAB  Soften aromatics contribution pressured by increasing supply as plant in Margins 3) China start running Phase I (2.25 MTA) and ramping up Phase II (2.25 MTA) ( GIM contribution 1.0 $/bbl from in May ’ 19 2.0 $/bbl in Q1/19) 3) Aromatic contribution including LAB Lube Base Improved Lube Base  Improved Bitumen spread supported by firm regional demand Contribution  Soften Base Oil spread pressured by lower demand due to weaker ( GIM contribution 0.7 $/bbl from economy from ongoing trade tensions and additional base oil Gr. 2 & 0.2 $/bbl in Q1/19) 3 supply mainly from China (0.6 MTA) $/BBL Q1/19 Q2/19 Market GIM 5.2 4.2 Refinery + Aromatics & LAB + Lube Base 4) Inventory Gains/ (Loss) 2.7 (0.2) Accounting GIM 7.9 4.0 4) Based on integrated intake

Key Highlights -11- -11- Q2/19 Key Highlights Key Highlights Q2/19 TOP Group Net Profit  Maintain high reliable production Operational Unit : million THB (MB) Net Operating Profit F/X Risk management gain/(loss) Excellence Stock gain/(loss) Q2/19 Q1/19 Others i.e. Hedging gain/(loss) & Reversal of Crude NRV /(Crude NRV) & Non-recurring items Refinery 103 %* 116 % Adjusted to cost Aromatic 64 % * 92 % 1H/19 Q1/19 Q2/19 Base Oil 85 % 89 % 4,408 MB 567 MB 4,975 MB * Planned MTA CDU-3, TPX Complex (Jun- Jul’19) 675  Capture high local & Indochina sales 334 • Lower GIM Q2/19 Q1/19 696 495 • Lower intake Local 88 % 87 % during MTA Indochina 10 % 10 % 2,335 Other exports 2 % 3 % 2,473 t  Successfully transform TTC to IBC & Set up Growth & Profitability TOP Ventures Co Ltd. (TH & HK) to invest in Improvement 339 1,729 CVC & start up area of manufacturing, tech green 1,272 202 & human tech & hydrocarbon disruption 458  Major Turnaround completed on time (Jul’19) (138) (166) (460) (294) CDU-3 & TPX Complex start to return from scheduled maintenance (30 and 45 days, respectively)  One time expenditure in Q2’19 Q1/19 Q2/19 Sustainability • Severance payment 384 MB 3% Included Stock G/L & Awards 4% • Maintenance cost 352 MB 5% 1% 11% Refinery  TOP’s local rating is upgraded to AA by Aromatic & LAB Fitch (Thailand), and BBB+ by S&P, and 35% 18% Lube Base 68% maintain at Baa1 by Moody’s, 56% Power  Asian Excellence Award 2019 Asiaʼs Best Others CEO (IR), Best CFO (IR) & Best IR Company in Thailand