Tipco co Asphal alt t Public lic Co Comp mpan any Limi mited - - PowerPoint PPT Presentation

15th August 2019

Tipco co Asphal alt t Public lic Co Comp mpan any Limi mited ted (TASC ASCO) O)

3-2019 Opportunity Day (Q2 2019 Operational Results)

Dis isclaime claimer

This presentation material has been prepared solely for informational purposes only. TASCO is furnishing it solely for use by prospective investors / analysts in the proposed event. TASCO makes no representations or warranties as to the accuracy or completeness of such information. By accepting this material each recipient agrees that TASCO shall not have any liability for any representations (express or implied) contained in, or for any omissions from this presentation. The information contained herein does not purport to be all-inclusive or to contain all of the information that may be material to the recipient’s decision. Each recipient of the information and data contained herein should perform its own independent investigation and analysis of the transaction and the creditworthiness of TASCO. Reference in this Disclaimer to this shall include references to the Appendices (if any) hereto.

Agenda Q2 2 20 2019 19 Financi ancial l Pe Perfor formance mance Q2 2 20 2019 19 Highlights hlights H2 2 20 2019 19 Out utlook look Q&A 1 2 3 4

Sa Sale les s & Se Servic vices es Re Revenue enue & Sa Sale les s Volume lume

Sales les & Services rvices Revenu venue Unit: Mil. THB 0.40 0.65 0.32 0.34 0.38 0.49 1.54 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Ye Year ar 2019 2018 7,091 10,784 5,263 5,766 7,032 9,571 27,632 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Ye Year ar 2019 2018 Sales les Volume ume Unit: Mil. Ton

• Sales and services stood at Baht 10,783.9 million, reflecting an

increase of 87.02% from the same period of last year and 52% increased from Q1 2019 attributed to significant increased in sale volume

• 91% increase in sales volume from the same period of last year

as a result of continuous and increased crude supply together with high production reliability at our refinery in Q2 2019

Operating perating Gr Gross ss Pr Profit fit

1,168 916 607 518 808 431 2,364 Q1 Q2 Q3 Q4 Year 2019 2018 Oper erating ting Gross

• ss Pr

Profit

• fit

Unit: Mil. THB

Gross ss profi fit mar argin in (%)

Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 FY FY 2019 2019 16.5% 8.5% 2018 2018 11.5% 9.0% 11.5% 4.5% 8.6%

• Gross profit of Q2 2019 was satisfactory given that the market

prices fluctuated within range bound. In addition, the Company has charged out to the Profit and Loss a hedging loss of Baht 35.6 million in this quarter which did not qualify for hedge accounting and also recorded a hedging gain of Baht 112.6 million as Other Comprehensive Income (OCI).

• Cost of sales and services in Q2 2019 stood at Baht 9,822.4

million or 91.08% (87.73% in corresponding quarter in 2018) of sales and services before the allowance for diminution in value

• f inventory and hedging
• The apparent reduction of gross margin was mainly due to

higher gross margin in the corresponding quarter of 2018 therein the sales volume was low and in an uptrend market condition

474 1,195 162 588 538 1,169 2,457 Q1 Q2 Q3 Q4 Year 2019 2018

EBITD ITDA A & Ne Net Pr Profit fit

EBITDA ITDA Unit: Mil. THB Net t Profit

• fit After

ter Tax ax Unit: Mil. THB 718 1,053 304 344 6 132 564 Q1 Q2 Q3 Q4 Year 2019 2018

• The Group’s cashflow generated from operations excluding fire

insurance claim stood at Baht 744.7 million increased by 57%

• ver Q1 2019
• The Group’s cashflow generated from operations including fire

insurance claim stood at Baht 1,195 million increased by 103%

• ver Q2 2018
• The Net Profit After Tax of Baht 1,052.9 million for the Q2 2019

represented 206% increased in corresponding quarter of 2018

0.68 1.00 1.13 0.02 0.01 0.004 Q2 2018 Q1 2019 Q2 2019 Total liabilities/Total equity LT debt/Total equity

Debt bt to E Equity quity Ratio io

Debt bt/Equity quity Rati tio

• The Group’s consolidated debt to equity ratio (D/E ratio) reached 1.13 comparing to 0.68 in corresponding period of 2018

due to increase in working capital financing for higher crude inventory.

Key y Ratios ios and Histor storical ical Dividend ividend

7.7 15.4 12.3 11.2 8.1 4.5 Q1 Q2 Q3 Q4 2019 2018 Return eturn on Equit ity1/

1/

Unit: % 6.6 10.3 9.1 8.5 6.2 4.5 Q1 Q2 Q3 Q4 2019 2018 Return eturn on Ass sset et2/

2/

Unit: % Histor storica ical l Dividend idend Unit: Baht per share

2/ Return is based on sum of last 12 months net profit Return is based on profit before interest and tax

0.13 0.00 0.10 0.20 0.90 0.90 1.20 0.30 0.40 2011 2012 2013 2014 2015 2016 2017 2018 2019 Payout ratio

1/ Return is based on sum of last 12 months net profit Divi vidend dend Poli licy The Company has a policy to pay dividends of not less than 60%

• f its consolidated net profit of each fiscal year.

The Company is pleased to announce an interim dividend of 0.40 Baht/share for the year 2019 27% 45% 74% 84% 36%

Interim dividend

Expense pense relating lating to fi fire re inciden cident t and insura surance nce cla laim im

Loss/( ss/(Gain) Gain) from

• m the fire

re incide ident nt (Unit: it: Mil. . THB) 2018 2018 Q1 2019 Q2 2019 Damaged Assets 289.92/

• (378)3/

Related expenses to the incident1/ 68.2 143 (44.5) Total al 358.1 .1 143 143 (422.5) 2.5)

• During the six-month period ended 30 June 2019,

The refinery incurred additional operating expense of Baht 170 million in operating expense for crude storage, logistic handling and other related expenses, attributable to the fire incident. Some of these expenses will be recurring until the damaged crude tanks are back in service

• In May 2019, the refinery received a partial payment
• f insurance claim in connection with damaged

assets and related expenses to MYR 60 million or approximately Baht 450 million

1/ include cost of floating storage unit rental, demurrage, tanks repair and other expenses 2/ carrying value of damaged assets-written off to Profit & Lost statement 3/ partial insurance claim based on replacement cost of damaged assets

St Status us of f crude ude storage rage of f KBC refinery finery

2 repaired tanks 2 damaged tanks

Floating ating Storage rage Unit t Refi finer nery y crude de storage

• rage
• 2 repaired tanks are scheduled to be done in Q4 2019
• 2 damaged tanks are scheduled to done in Q1 2020
• Rental period last during mid-February 2019 to

February 2020

Q2 2 20 2019 19 - Highlights ghlights

• 4 crude cargos received during the Q2 2019
• Total crude receiving of 8 cargos in first half of 2019 well exceeded target

Crude de

• Refinery was processing at high utilization rate
• New construction and repair of crude storage tanks are underway according to plan

Refi finer nery

Q2 2 20 2019 19 - Highlights ghlights

Domest mestic ic Market ket

• Q2 2019 sale volume was benefiting from delay of budget disbursement in Q4 2018
• Entering into low working season

Intern ternation ational al Market rket

• Strong demand in China, Malaysia and Vietnam markets, especially in China market

Asphalt phalt Se Sell lling ng Pr Price ce vs. . Ic Ice e Brent ent Pr Price ice

Unit: t: USD/b /barrel arrel

80.1 70.1 60.0 57.3 45.8 38.0 37.4 38.5 53.8 45.3 48.2 57.9 62.2 63.6 71.2 63.3 65.3 71.4 55.2 63.5 51.2 44.7 34.7 46.9 47.1 51.1 54.7 50.9 52.2 61.5 67.2 74.9 76.0 68.1 63.8 68.3 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

• Avg. asphalt selling price
• Avg. Ice Brent price

Highlig hlights hts : A Asphal phalt t Volume lume & Asphalt phalt Revenue venue St Structu ucture re

Main n Intern ternation ational al Markets rkets China Vietnam Australia

Asphalt phalt sales les volume ume by marke rket t Unit: % Asphalt phalt Revenue venue (Exc xc. . Non asphalt phalt & ser ervice vice incom

• me)

Unit: % 32% 45% 20% 68% 55% 80% Q2 2018 Q1 2019 Q2 2019 Domestic International 28% 35% 17% 72% 65% 83% Q2 2018 Q1 2019 Q1 2019 Domestic International

Indonesia Malaysia

0.40 0.34 0.65

Q2 2018 Q1 2019 Q2 2019 Million

• n tons

4.61 5.97 9.21

Billion

• n Bah

aht Q2 2018 Q1 2019 Q2 2019

H2 2 20 2019 19 Out utloo look k – Crude ude & Re Refi fine nery ry

Ref efiner inery Crude ude

• Existing inventory in-hand is adequate to maintain refinery production until Q1 2020
• Target receiving of 15 crude cargos in 2019
• 2 repaired tanks will be resumed operation in Q4 2019
• Renewal of Floating Storage Unit until Feb 2020
• 2 new tanks construction will be scheduled to be completed in Q1 2020

H2 2 20 2019 19 Out utloo look k – Domes mestic tic & In Inter ernational national ma market rket

Dome

• mesti

stic c Market ket Inte ternati rnationa

• nal

l Market ket

• Benefit from consistence crude supply
• Peak season in Indonesia and Vietnam
• 2020 fiscal government budget delay from Q4 2019 to Q1 2020
• Expected stimulus budget from new government to support GDP growth

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