Thai Oil Public Company Limited Thai Oil Public Company Limited Presented to Investors Presented to Investors Thai Corporate Day arranged by CIMB-GK Thai Corporate Day arranged by CIMB-GK 4 May 2006 4 May 2006 1
Disclaimer Disclaimer 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 . 2
Vision and Mission for 2006- -2010 2010 Vision and Mission for 2006 Vision and Mission for 2006-2010 Vision 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. Mission � 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 3
Presentation Outline Presentation Outline I) Thaioil’ ’s s Overview Overview I) Thaioil II) Business Environment & Industry Update Business Environment & Industry Update II) III) Financial Performance Financial Performance III) 4
I) Thaioil Overview I) Thaioil Overview 5
One of Thailand’ ’s premier companies s premier companies One of Thailand One of Thailand’s premier companies � 2nd largest in Thailand in terms of total revenue (2005) ~ US$ 6.3 bn. (after PTT ~ US$ 24 bn). � Ranked No. 8 on SET in terms of market capitalization ~ US$ 3.5 bn. (3% of SET). � One of 13 Thai companies named by “Forbes” in its global survey for 2,000 biggest companies. TOP ranked # 1,330 in 2005, improving from # 1,595 from the previous year. � Thaioil’s IPO (US$ 830 mn) is the largest (and arguably most successful) listing on The Stock Exchange of Thailand since PTT’s in 2001 (US$ 637 mn). � Thaioil is the largest and most complex refinery in Thailand, the Flagship refinery of the PTT group and of strategic importance to PTT and the Country’s energy security. Free Float (Thai) 19.81% Free Float (Foreign) 23.47% PTT 49.54% Others 7.18% Note: As of 30 March 2006 6
Key Strengths Key Strengths Key Strengths Thailand ’ s largest and one of the region ’ s Solid growths most advanced and Technological through competitive refineries superiority & de-bottlenecking & logistical advantages expansion More diversified Continued favorable earnings through industry outlook with significant increase in high barrier to entry subsidiary contributions PTT ’ s flagship refinery Continuously - high degree of strengthening Highly capable & operational & financial financial profile experienced cooperation management team 7
Mutually Beneficial Relationship with PTT Mutually Beneficial Relationship with PTT Mutually Beneficial Relationship with PTT LT Strategic Partnership � LT strategic shareholder & joint-investment � Flagship refinery Business Partnership � Product offtake � Crude procurement � Processing arrangement Operational Synergies � Knowledge transfer & shared services � Close management collaboration & secondment Mutually Financial Benefits/Supports � Significant contributions to PTT’s bottom line (11% in 2005) � Strong business/financial support (undertaking & obligations) � Relationship with PTT enhances the level of integration without passing on the downside risks. � All transactions take place at arm’s length and observe strong corporate governance principles. 8
Accomplishment in 2005 Business/Operational � Maintained high utilization at 104% for 2nd consecutive year. This high utilization to be achieved in 2006. � Turnaround of performance of all subsidiaries post-acquisition resulted in significant contributions to the Group. � Thaioil ’ s management capability was evident by an improvement in overall performance of the Group, through operational integration & synergies. � Acquired 24% of IPT in Mar ’ 05 from Unocal for US$ 12.75 mn.(equivalent to US$ 76,000/MW). � All approved investment projects, e.g., CDU-3 revamp, SBM, etc., have progressed as planned. Finance � TOP - Prepayment of US$ 100 mn. in Mar ’ 05, thereby reducing interest cost - Tremendous success in debt refinancing in Jun ’ 05. � IPT & TPX - Successful negotiation with creditors for better terms and conditions Recognitions � Best Newly Listed Company in Asia and Most Improved Companies in Asia for the Year 2005 � Best achievement in Energy Conservation (Refineries & Chemical) for the Year 2005 from the Ministry of Energy � Best Newly Listed Company in Thailand for the Year 2004 � Reliability Award from SGSI for CDU-3 and CCR-2 performance for the Year 2004 � Leading position when benchmarked with peers (Solomon/SGSI) 9
Thaioil Corporate Structure Thaioil Corporate Structure Thaioil Corporate Structure Petrochem/ Power Transportation Refinery Lube Base Oil PTT 26% JPOWER 19% Thaioil 100% 55% 100% 100% 9% (TOP) Thai Paraxylene Thaioil Power Thai Lube Base Thaioil Marine Thappline (TPX) (TP) (TLB) (TM) Capacity: Current: 220 Kbd Capacity: Capacity: SPP program A fleet of 5 oil & Multi-product Mid 07: 275 Kbd Pipeline Current:348 Kt/y (PX) petrochemical 3-on-1 Combined cycle Lube Base oil: vessels with int ’ l 72 Kt/y (MX) 270 Kt/y Electricity 118 MW Capacity: 26,000 classifications mn Litres/Y. Steam 168 T/hr Total capacity: Mid 07: 853 Kt/y total approx 30,000 DWT 408 Kt/y (PX) Utility Supply to Group 160 Kt/y (Bz) 136 Kt/y (To) Independent 149 Kt/y (MX) 56% Power (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 10
II) Business Environment & Industry Update II) Business Environment & Industry Update 11
Regional Oil Demand, Refinery Utilization and GRM Regional Oil Demand, Refinery Utilization and GRM Oil Demand (Kbd) Refinery Utilization 91% 40,000 95% 90% 86% 90% 35,000 83% 82% 82% 81% 85% 30,000 80% 23,048 25,000 22,604 21,478 20,676 20,429 20,369 75% 19,813 20,000 70% 15,000 65% 10,000 60% 5,000 55% 0 50% *Exclude feeds to 1999 2000 2001 2002 2003 2004 2005 petrochemical plants Source: FACTS, Spring China S. Korea Japan India Others Utilization 2006 Preliminary TOP’s GRM included MX margin US$/bbl 8 6 4 2 0 1999 2000 2001 2002 2003 2004 2005 12 Source: *Singapore Complex GRM from Bloomberg
Continued Tight Domestic Oil Demand/Supply in 2005 Kbd Oil Production by Refinery 1) Domestic Oil Demand/Refinery Intake 90% 90% 89% 1200 90% 87% 85% 84% Kbd 215 (Intake) 85% 925 1000 920 903 911 862 867 80% 88 82 145 800 83 92 120 120 75% 101 600 70% 59 65% 400 764 765 738 10 731 712 717 60% Total 200 55% Country TOP Esso R R C SPR TPI B C P R PC 0 50% Q1/05 Q2/05 Q3/05 Q4/05 2005 2004 Intake (kbd) 914 230* 153 139 139 178 63 12 Oil Demand Feed for Petrochem Utilizaton 87% 104% 90% 92% 92% 83% 53% 60% Net Export % Utilization rate (RHS) Oil Demand by Products Volume (Kbd) � Oil demand for 2005 was approx. 738 kbd, higher than last year by 1%. 2005 2004 +/(-) Domestic demand in H2/05 was reduced, compared with � LPG 93 83 +12% H1/05 due to rainy season, flooding and the impact of diesel Gasoline 125 132 (5%) subsidy removal in Jun’05. 412 412 - Middle Distillate � While supply remained tight, local refineries’ utilization rate -Diesel 337 337 - was 87% in 2005 down from 89% in 2004, reflecting major -Jet Fuel 75 75 - turnaround of RRC/SPRC in Oct 05. Remark: 1) Exclude feedstock for petrochemical plant Fuel Oil 108 105 +4% Source: Ministry of Energy and Company 13
Operational Accomplishment in 2005 Operational Accomplishment in 2005 % YoY Increased utilization/production rates were seen throughout the group leading to increased profitability. 120% 104% 104% 97% 92% 92% 100% 91% 82% 79% 77% 77% 80% 71% 2004 2005 60% 41% 40% 20% 0% Refinery TPX Prod. Rate TLB Prod. Rate IPT A vailability TP Utilization TM Utilization Utilization � TOP - Interim maintenance shutdown of CDU-3 in Q1 enhanced plant efficiency, thereby allowed sustainability of high utilization rate at 104%. � TOP - Hydrocarbon Management Review activities helped contribute US$ 0.29/bbl intake. � TPX - Change of catalyst in Jan’05 increased PX production by 20% (+60,000 TPA). � TLB - Co-operation between TOP/TLB in productions management improved TLB plant reliability & profits. � IPT - Completion of CT-2 replacement allowed a full 700 MW run as from Jun’05. � Utilities - No impact in production following regional-wide water shortage crisis. 14
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