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Analyst Briefing Presentation1Q/2012 Operating Results

May 16, 2012Synergy Hall, Energy Complex

Agenda

• Strategic Direction• Key Quarterly Highlights• Market Outlook• 1Q/12 Financial Results• Appendices

2

Disclaimer: This presentation has been prepared by PTT Global Chemical Public Company Limited (the “Company”) and the information contained in thispresentation is intended solely for your personal reference only. In addition, such information contains projections and forward‐looking statements thatreflect our current views with respect to future events and financial performance. Furthermore, it contains information which are base on theCompany’s data collections and analysis with third parties references. These views are based on assumptions subject to various risks and uncertainties.

3

Agenda


Mission to be Continued

4

Mr. Anon SirisaengtaksinChief Executive Officer of PTTGCMr. Anon Sirisaengtaksin

Chief Executive Officer of PTTGC

“To be a Leading Chemical Company for Better Living”

VISION

• PTT’s Petrochemical Flagship

• Thailand’s largest Gas and Liquid based petrochemical producer with integrated aromatics and refining business

• Strategic linkage with PTT gas value chain• Key strength on gas feedstock based on profit sharing basis

5

PTTGC New Organization Chart (May 1, 2012)

Strategic Direction

“To be a Leading Chemical Company for Better Living”

6

7

New Investments ‐ 1‐ Step Adjacencies & Exploring Green Business

Required regulatory approvals have been granted, expects to close transaction within 1H/12

Investment in Perstorp Holding France SAS ‐ 51% stake, investment capital of Euro 114.8 million (approximately baht 4,830 million)

Debts free and Cash free scheme

Investment in Perstorp France SAS

Investment in NatureWorks Required regulatory approvals have been granted, expects to close transaction within 1H/12

Investment in NatureWorks ‐ 50% stake, investment capital of USD 150 Million

Planned to build second plant potentially in Asia

Studied the possibilities to use alternative feedstock

Applications

Applications

Agenda

8


9

1. World economy remained a key concern, with slightly improved economic indicators in US, yet uncertainty in EU’s sovereign debt crisis, and slower growth in China

2. Crude oil prices continued to be volatile due to both supply and demand factors i.e. market sentiment of supply shortage from political unrest in oil‐producing countries, economic growth in US, EU, and China

3. Petrochemical demand still has not yet recovered as Chinese buyers have not built up the inventory. 2012 spread of HDPE over naphtha is expected to be 400‐450 USD/ton.

4. THB currency remained volatile against USD due to the uncertainty of global economic outlook

Key Quarterly Highlights – External Factors

Key Quarterly Highlights – Business Operation

10

103,698

133,202 137,289 126,117 133,666

‐

50,000

100,000

150,000

1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

Sales Revenue

18,018 15,440

12,271

8,693

14,610

‐

5,000

10,000

15,000

20,000

1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

EBITDA

11,162

8,601

6,217

4,053

9,852

‐

2,000

4,000

6,000

8,000

10,000

12,000

1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

Net Profit

Dubai price averaged at 116 USD/BBL in 1Q/12, compared to 100 USD/BBL in 1Q/11 and 106 USD/BBL in 4Q/11

Rising oil price contributed to a stock gain of 2,690 M.Baht

Downstream derivatives demand softened from end users’ weakened demand, margins squeezed.

MBaht

MBaht

MBaht

Finance Market

Operation

Utilization rate • Refinery 101% compared to 56% in 1Q/11(Refinery: Intake volume increased from 101 KBD to 173 KBD, or from 9.12 to 15.78 BBL ‐ up by 73% YoY)

• Aromatics 73% (ARO2 turnaround) as against 94% in 1Q/11• Olefins 86% (I4‐2 turnaround) compared to 84% in 1Q/11 (Petrochemical: Production volume slightly decreased from 2.40 MTon to 2.19 MTon – down by 9% YoY)

Utility and steam provider plant blackout • PTTPE Cracker S/D 13 days, LLDPE S/D of 3 days, LDPE S/D 16 days

As a result of BSTE incident, BST stopped purchasing Mixed C4 from PTTGC, expected to be 1 month long

PTTGC planned to use mixed C4 as feed recycle in the process or export

Mixed C4 volume sold to BST ~ 80‐90k ton/year

Update on Current Situation

11

Olefins and Derivatives

21%

Aromatics26%

Refinery46%

Green Chemical

2%

Phenol2%

Other4%

4Q/11


20%

Aromatics18%

Refinery52%

Green Chemical3%

Phenol3%

Other4%

1Q/12


25%

Aromatics35%

Refinery29%

Green Chemical

2%

Phenol3%

Other6%

1Q/11

Revenue Breakdown

Petrochemical Revenue Portion1Q/11 = 63% (Refinery Shutdown)4Q/11 = 49% 1Q/12 = 41% (Aro2 Shutdown)

103,698 MB133,666 MB126,117 MB

12

EBITDA Breakdown

Petrochemical EBITDA Portion1Q/11 = 74% (Refinery Shutdown)4Q/11 = 69% (Low aromatics margin)1Q/12 = 63% (Aro2 Shutdown)


44%

Aromatics26%

Refinery18%

Green Chemical

1%

Phenol4%

Other7%

EBITDA 1Q/11


47%

Aromatics14%

Refinery29%

Green Chemical

2%

Phenol2%

Other6%

EBITDA 1Q/12


68%Aromatics3%

Refinery20%

Green Chemical

4%

Phenol‐2%

Other8%

EBITDA 4Q/11

18,018 MB14,610 MB8,693 MB

Agenda


13

Dubai Crude Price and Cracks Forecast

14

$/Barrel 2011 2012 2013 2014 2015 2016Dubai Crude 106 117 119 130 138 142Gasoline‐Dubai 13 12 10 10 10 10Jet‐Dubai 19 17 16 16 17 18Diesel‐Dubai 18 16 14 14 15 16Fuel Oil‐Dubai ‐6 ‐4 ‐5 ‐5 ‐5 ‐5

USD/Barrel USD/Barrel

Source: PIRA, Feb 2012

• Oil prices in 2012 expected to be pressured by economic, political, and social uncertainty

• Crude price forecasts reflect market expectation of demand growth in 2012 to 2016

13 12 10 10 10 10

19 17 16 16 17 18 18

16 14 14 15 16

(6) (4) (5) (5) (5) (5)

106117 119

130138 142

119129 130

140148 152

126134 135

146155 159

124133 134

144153

157

100

113 114125

132136

0

20

40

60

80

100

120

140

160

180

(10)

‐

10

20

30

40

50

60

2011 2012 2013 2014 2015 2016

Gasoline 95‐Dubai Jet‐Dubai Diesel‐Dubai Fuel Oil‐Dubai Dubai Crude

Gasoline 95 Jet Diesel Fuel Oil

15

Olefins: Spreads Expected to Improve due to Tight Supply

USD/TonShort‐term Price Forecast

Long‐term Price Forecast

Source: CMAI April 2012

230 312 300 346

260 386 422 468

1,021 1,054 1,036 1,024

1,251 1,365 1,337 1,370

1,281

1,440 1,458 1,492

‐

200

400

600

800

1,000

1,200

1,400

1,600

1Q/12 2Q/12 3Q/12 4Q/12

252 296 385 365

475 533 451 391 453 492

587 637

935 1,034 1,017

938 962 992

1,187 1,330

1,402 1,303

1,437 1,525

1,386 1,424 1,470 1,430 1,549

1,629

‐

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2011 2012 2013 2014 2015 2016

USD/Ton

Short‐Term :

• Olefins supply in Asia remains tight as ongoing crackers in the region are being shut down due to production problems and turnaround especially in 2Q‐3Q/12

• It is estimated 10‐15% of total Asia ethylene capacity will be lost.

Long‐Term :

• Increase in crude oil and naphtha feedstock prices in the long term will be an opportunity for gas‐based olefins producers

• Additional capacities in Middle East and Asia (especially in China and India) during 2014 will slow down the increasing price due to excess of supply.

Unit : KMT

2009 2010 2011 2012 2013 2014 2015 2016

16

Ethylene Capacity and Closure

Source : CMAI and PTTGC

Delay from plans

Morvarid PC Iran500 KTANov‐09 to Jan‐10

Sharq Saudi.1,200 KTAQ1‐09 to Dec‐09

Indian Oil India857 KMTQ4‐09 to Q2‐10

Borouge Qatar1,400 KMTQ2‐10 to Q3‐10

ZRCC China1,000 KMTQ1‐10 to Q2‐10

Saudi PolymersSaudi1,200 KMTQ3‐11 to end of Q2‐12

Additional (2012‐2016) (Unit : MMT)

Supply Demand25.86 30.41

Ilam Iran458 KMTQ1‐12 to Q1‐15

SINOPEC WuhanChina800 KMTQ1‐11 to Feb‐13

ExxonMobilSingapore1,000 KMTQ3‐11 to Q1‐13

Shanghai PCChina600 KMTQ3‐12 to Q1‐14

Daqing PC China600 KMTQ1‐11 to Q1‐13

374 353 337 408

297 308 300 363 370 351 364 414

1,021 1,054 1,036 1,024

1,395 1,407

1,373 1,432

1,318 1,361 1,336 1,387

1,391 1,405 1,400 1,438

‐

200

400

600

800

1,000

1,200

1,400

1,600

1Q/12 2Q/12 3Q/12 4Q/12

17

Polyethylene: Slow Increase in Price & SpreadShort‐term Price Forecast


438 364 447

651 787 859

404 307

460 662

797 869

667

368 480

811

939 991 935 1,034

1,017 938 962 992

1,373 1,398 1,464

1,590 1,749 1,850

1,339 1,341 1,478

1,600 1,759

1,861 1,602 1,402 1,498

1,749 1,901 1,983

‐

500

1,000

1,500

2,000

2,500

2011 2012 2013 2014 2015 2016

USD/Ton

USD/Ton

Short‐Term:• Strong buying resistance from converters and end‐use producers due to squeezed margins and debt‐crisis in Eurozone will weigh on PE demand.

• However PE supply in Asia and from the Middle East will be less due to schedule maintenance and production cuts in Asia in response to squeezed margin while high ethylene feedstock cost will be supporting PE prices.

Long‐Term:

• PE demand growth in Asia overall will remain robust especially in China, which is expected to stay over 7% per year through 2016.

• With demand growth outpacing supply, the PE prices are expected to continuously increase.


18

‐1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Unit : KMT

2009 2010 2011 2012 2013 2014 2015 2016

Delay from plans



Fujian Ref. China 400 KTAQ1‐09 to Sep‐09

Dushanzi PC China600 KTAApr‐09 to Sep‐09

Tianjin PC China300 KTAQ4‐09 to Q1‐10

Borouge UAE360 KMTQ2‐10 to Q3‐10

ZRCC China225 KMTQ1‐10 to Q2‐10

Indian Oil India475 KTAQ4‐09 to Jun‐10

Saudi PolymersSaudi.1,100 KMTQ3‐11 to end of Q2‐12

ExxonMobil Singapore325 KMTQ3‐11 to Q1‐13

New HDPE Capacity and Closure


Sichuan PC China300 KMTQ1‐12 to Q1‐14



19

Unit : KMT

‐1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2009 2010 2011 2012 2013 2014 2015 2016

Delay from plans



Fujian Ref. China 400 KTAApr‐09 to Sep‐09

Dushanzi PC China300 KTAApr‐09 to Sep‐09

Tianjin PC China300 KTAQ4‐09 to Jan‐10

Borouge UAE200 KMTQ2‐10 to Q3‐10

ZRCC China450 KMTQ1‐10 to Q2‐10

Indian Oil India175 KTAQ4‐09 to Q3‐10


Shanghai PC China125 KMTQ3‐12 to Q1‐14

ExxonMobil Singapore975 KMTQ1‐11 to Q1‐13


New LLDPE Capacity and Closure


20

‐500

0

500

1,000

1,500

2,000

Unit : KMT

2009 2010 2011 2012 2013 2014 2015 2016

Delay from plans



Amir Kabir PC Iran300 KTAQ4‐09 to Q4‐10

New LDPE Capacity and Closure


QAPCO Qatar300 KTAQ1‐12 to Q2‐12

424

264361

433

1,021 1,054 1,036 1,024

1,251 1,365 1,337 1,370

1,237 1,151

1,230 1,323

0

200

400

600

800

1000

1200

1400

1600

1Q/12 2Q/12 3Q/12 4Q/12

21

MEG: Well Performer in Next Few YearsShort‐term Price Forecast


542

368 487

602 498

400

935 1,034 1,017

938 962 992

1,187

1,330 1,402

1,303

1,437 1,525

1,314 1,232 1,398

1,449

1,432 1,392

‐

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2011 2012 2013 2014 2015 2016

USD/Ton

USD/Ton

Short‐Term:

• Most players were keeping cautious given persistently high inventory in China (more than about 800,000 tons) and poor downstream Polyester demand

• Buying sentiment is expected to be driven up from ongoing and upcoming plants turnaround in Asia and the Middle East in May‐June coupled with stronger sales in the downstream textiles and fabrics sectors in China from manufacturing season in May.

Long‐Term:

• Both MEG price and spread will increase till 2014 due to lack of supply in Asia and Middle East, but will likely drop due to more additional capacities mainly from China.


‐1,000

0

1,000

2,000

3,000

4,000

5,000

Unit : KMT

2009 2010 2011 2012 2013 2014 2015 2016

22



Ahead from plans

Delay from plans

Yansab Saudi.800 KTAJul‐09 to Aug‐09

Sharq Saudi.800 KTADec‐09 to Aug‐09

Shell Singapore750 KMTQ1‐10 to Nov‐09

Tongliao Jinmei China200 KTADec‐09 to Apr‐10

Liaoning Huajin China220 KMTJan‐10 to Mar‐10

Sinopec ZhenhaiChina700 KMTJan‐10 to Mar‐10

New MEG Capacity and Closure

Source : PCI and PTTGC

Europe

PetroChina China380 KMTQ1‐12 to Q3‐13

Sinopec Tianjin China420 KTADec‐09 to Feb‐10

Heyuan ChemicalChina500 KMTQ4‐12 to Q3‐13

23

Paraxylene: Remain Strong throughout 2012Short‐term Price Forecast


606 571 568 505 386 407

935 1,034 1,017

938 962 992

1,541 1,605 1,585

1,443 1,348 1,399

‐

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2011 2012 2013 2014 2015 2016

Short‐Term:• PX market continued to get supports from fundamental supply tightness due to turnaround season.

• However, squeezed PTA margins and high inventory levels among downstream Polyester market will lead to a negative impact on buying sentiments.

• PX‐Naphtha spread can still maintain over 550 USD/ton throughout 2012 due to stronger downstream demand as new capacity of PTA is coming on stream.

Long‐Term:

• PX‐Naphtha spread will be pressured by capacity additions mainly from Korea, India and China which are approximately more than average 8.7% per year since 2013‐2015.


USD/Ton

USD/Ton

541 521 587 611

1,021 1,054 1,036 1,024

1,562 1,575 1,623 1,635

‐

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1Q/12 2Q/12 3Q/12 4Q/12

Unit : KMT

2009 2010 2011 2012 2013 2014 2015 2016

24

New PX Capacity and Closure

Source : PCI and PTTGC



S‐Oil, S. Korea900 KMT2010 to Q2‐11

Urumqi, China 1,000 KTAQ4‐10 to Q2‐11

Delay from plans

25

159 128 101 110

1,021 1,054 1,036 1,024

1,180 1,182 1,137 1,134

‐

200

400

600

800

1,000

1,200

1,400

1Q/12 2Q/12 3Q/12 4Q/12

169 124 184 182 206 187

935 1,034 1,017

938 962 992

1,104 1,158 1,201

1,120 1,168 1,179

‐

200

400

600

800

1,000

1,200

1,400

2011 2012 2013 2014 2015 2016

Short‐term Price Forecast


USD/Ton

USD/Ton

BenzeneShort‐Term:• Benzene price recently drop in accordance to a sharp drop in crude price.

• Sentiment is bearish due to expectation of buyers for BZ price to decline from weak economic fundamentals. Weak downstream (SM) demand.

Long‐Term:• World demand of Benzene is expected to grow approximately 3.3% per year until year 2016 which is close to GDP.

• Northeast Asia consume 44% of world benzene with annual growth in demand of 4.9%, mostly used to make SM.

• Cumene is the second largest benzene derivative which consume 8 million tons of world benzene yearly. Growth of cumene demand is forecasted to be above GDP. Cumene is mainly used to for polycarbonate.


26

Unit : KMT

‐1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

2009 2010 2011 2012 2013 2014 2015 2016



New Benzene Capacity and Closure


Agenda

27


28

Oil Price Movement and Cracks

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

Dec‐09 Feb‐10 Apr‐10 Jun‐10 Aug‐10 Oct‐10 Dec‐10 Feb‐11 Apr‐11 Jun‐11 Aug‐11 Oct‐11 Dec‐11 Feb‐12

Dubai ULG 95 Jet Gas Oil Fuel OilUSD/BBL

Apr‐12

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

7876 74 84 100 111 107 106 116▲2 ▼4 ▲10 ▲16 ▲11 ▼4 ▼1 ▲6

912 13 14

20 20 19 1816

1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12

911 12 13

18 19 18 1816

1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12

13

9 911

13 1417

10

14

1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12

‐3

‐7

‐5

‐8‐9

‐8

‐5

‐3 ‐31Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12

12

19

Average

Jet-Dubai Gas Oil-Dubai

ULG95-Dubai Fuel Oil-Dubai

1118

11 14

‐6 ‐6

2010 Dubai: 78 USD/bbl 2011 Dubai: 106 USD/bbl 2012 Dubai: 116 USD/bbl

Dubai

81

149 14720

20 26

56%

103%101%

‐11%

9%

29%

49%

69%

89%

109%

0

20

40

60

80

100

120

140

160

180

200

1Q/11 4Q/11 1Q/12

Crude CR + Others CDU Utilization Rate

Refinery Intake, Sales, and Margin

29

RefineryIntake (M.BBL) 9.12 15.55 15.78

0.93 1.48 1.591.24

2.00 2.214.16

7.718.94

1.14

1.911.84

0.15

1.131.34

0.63

1.47

1.53

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

1Q/11 4Q/11 1Q/12Total Sales (M.BBL) 8.25 15.69 17.46

Light NaphthaReformateJet/Kero

Gasoil

Fuel Oil

Others

Refinery Quarter % change(USD/BBL) 1/2012 1/2011 4/2011 YoY QoQ

Market GRM 5.77 8.12 5.62 ‐29% 3%

Hedging Gain/(Loss) 0.17 (1.67) (0.40) 90% 56%

Stock Gain/(Loss) Net LCM 3.71 6.29 0.27 ‐41% 1295%

Accounting GRM 9.65 12.74 5.49 ‐24% 76%

Crude & Other Feedstock Sales Volume

KBD %

M.BBL

Transferred at Cost

8%2%

14%

50%15%11%

9%7%

12%

49%

13%

9%

9%8%

11%

51%

13%

9%

101 KBD

169 KBD 173 KBD

0

200

400

600

800

1000

1200

1400

1600

1800

Dec‐09 Feb‐10 Apr‐10 Jun‐10 Aug‐10 Oct‐10 Dec‐10 Feb‐11 Apr‐11 Jun‐11 Aug‐11 Oct‐11 Dec‐11 Feb‐12 Apr‐12

Condensate Erawan Naphtha MOPJ PX FECP BZ Spot Korea

30

620 648 624 713859 980

942 9231,006▲28 ▼24 ▲89 ▲146 ▲121 ▼38 ▼19

▲83

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

2010 Nap J: 724 USD/ton

2011 Nap J: 938 USD/ton2011Cond: 926 USD/ton

2010 Cond: 651 USD/ton

1Q/12 Nap J: 1,021 USD/ton1Q/12 Cond: 1,006 USD/ton

435359

289

460

692619 590 569 556

0

100

200

300

400

500

600

700

800

1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12

PX FECP‐Condensate

340

255209

246286

168 184

84

175

0

50

100

150

200

250

300

350

400

1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12

BZ Spot Korea‐Condensate

Aromatics Price Movement & Spread

USD/Ton

Condensate

31

Aromatics Intake, Sales, and Margin

600514

249

1516

19

206172

181

298

267

221

0

200

400

600

800

1,000

1,200

1Q/11 4Q/11 1Q/12

1.32 1.231.02

94%80%

73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1Q/11 4Q/11 1Q/12

Condensate + Other Feedstock (K.Ton) BTX Utilization Rate

Aromatics Quarter % Change(USD/Ton) 1/2012 1/2011 4/2011 YoY QoQ

Market P2F 131 151 68 ‐13% 93%

Hedging Gain/(Loss) 1 ‐ ‐ 0% 0%

Stock Gain/(Loss) Net LCM 42 60 4 ‐30% 950%

Accounting P2F 174 211 71 ‐18% 144%

Condensate + Other Feedstock Sales Volume

46%47%

63%

PX

BZ+CXOther BTX

Other By‐Products

Net Sales (M.Ton) 0.97 0.97 0.67

M.Ton %

K.Ton

27%

18%

1%

54%

28%

18%2%

53%

33%

27%

3%

37%

Olefins Feedstock Breakdown

32

Unit: K Ton

19% 18% 17% 22% 18% 14% 11% 7%16%

81% 82% 83% 78% 82% 86% 89% 93%84%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

443 571 460 562 860 858 740 662 883

Increased in total feedstock in 1Q/12 to 883 Kton with 16% of naphtha feed and 84% of gas feed. Gas feed portion increased from average 2011 of 12% to 16% in 1Q/12 due to more steady gas feed from gas separation unit.

Gas

Naphtha

0200400600800

1,0001,2001,4001,6001,8002,000

Jan‐10 Apr‐10 Jul‐10 Oct‐10 Jan‐11 Apr‐11 Jul‐11 Oct‐11 Jan‐12 Apr‐12

Naphtha MOPJ HDPE (FILM) SEA LLDPE (SEA) CFR SEA LDPE CFR SE Asia MEG SEA

682

554484

546 520

387 382328 297

0

200

400

600

800

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

LLDPE‐MOPJ602

477 455 467 469397 443 441

374

0

200

400

600

800

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

HDPE‐MOPJ

‐161

70 100186

445

257

444548

271

‐200

0

200

400

600

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

MEG‐0.65 Ethylene777

685 654800 828

691 630520

370

0

500

1,000

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

LDPE‐MOPJ

33

USD/Ton

Polyethylene and MEG Price and Spread

404511

740

437577

424

48

667

710717 666 803 903 993 956 888 1,021▼44 ▲137 ▲100 ▲90 ▼37 ▼68 ▲133▼7

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

$/Ton$/Ton

$/Ton$/Ton

Naphtha

1,1871,319 1,120 1,271 1,372 1,389 1,399 1,329 1,395 HDPE

Sales Volume and U‐Rate

34

163,029 172,371 174,966

84% 78% 86%

0%

20%

40%

60%

80%

100%

100,000110,000120,000130,000140,000150,000160,000170,000180,000190,000

1Q/11 4Q/11 1Q/12

Olefins U‐Rate

198,932 181,015 181,766

105%

85%99%

0%

20%

40%

60%

80%

100%

120%

100,000

120,000

140,000

160,000

180,000

200,000

220,000

1Q/11 4Q/11 1Q/12

HDPE U‐Rate

77,779

116,533 98,715

89%

113%100%

0%

20%

40%

60%

80%

100%

120%

‐

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

1Q/11 4Q/11 1Q/12

LLDPE U‐Rate

37,953 32,883

59,724

69%59%

71%

0%

20%

40%

60%

80%

100%

010,00020,00030,00040,00050,00060,00070,00080,00090,000

1Q/11 4Q/11 1Q/12

LDPE U‐Rate

72,724 87,409

68,914

77%78%

79%

0%

20%

40%

60%

80%

100%

‐

20,000

40,000

60,000

80,000

100,000

1Q/11 4Q/11 1Q/12

MEG U‐Rate

Ton

Ton

TonTon

Ton

Phenol and BPA Price Movement and Spread

35

0

500

1,000

1,500

2,000

2,500

3,000

Jan‐10 Apr‐10 Jul‐10 Oct‐10 Jan‐11 Apr‐11 Jul‐11 Oct‐11 Jan‐12

Benzene (Korea) BPA (NEA) Phenol (CMP)

530 764

990 932 826 1,013

715 410 505

‐

500

1,000

1,500

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

Phenol‐(BZ*0.88)

481 556 507

767 832 712

591 447 378

‐

200

400

600

800

1,000

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

BPA‐(Phenol*0.85)

2010 Phenol 1,608 $/ton 2011 Phenol 1,712 $/ton 1Q/12 Phenol 1,544 $/ton2010 BPA 1,945 $/ton 2010 BPA 2,101 $/ton 1Q/12 BPA 1,690 $/ton

Sales Volume and U‐Rate

48,148

21,241

44,707

24,897

12,810

129%

98% 97%

73%

27%

‐10%

10%

30%

50%

70%

90%

110%

130%

010,00020,00030,00040,00050,00060,00070,00080,00090,000

100,000

1Q/11 4Q/11 1Q/12

Phenol Sales Volume BPA Sales Volume

Phenol U Rate BPA U RateRemark: BPA started commercial operation in April 2011

Profit and Loss Financial Statement

36

M. Baht % M. Baht % M. Baht % M. Baht % M. Baht %1 Sales Revenue 133,666 100 103,698 100 126,117 100 29,968 29 7,549 6 2 Feedstock cost (113,538) (85) (83,116) (80) (108,971) (86) (30,422) 37 (4,567) 4 3 Product to Feed Margin 20,128 15 20,582 20 17,146 14 (454) (2) 2,982 17 4 Variable Cost (3,318) (2) (1,582) (2) (2,986) (2) (1,736) 110 (332) 11 5 Fixed Cost (3,260) (2) (2,872) (3) (4,117) (3) (388) 14 857 (21)6 Stock Gain/(Loss) 2,690 2 3,539 3 235 0 (849) (24) 2,455 1,045 7 (Gain/(Loss) Hedging Commodity 95 0 (467) (0) (192) (0) 562 (120) 287 (150)8 Other Income 753 1 569 1 1,877 1 184 32 (1,124) (60)9 SG&A (2,478) (2) (1,751) (2) (3,270) (3) (727) 42 792 (24)10 EBITDA 14,610 11 18,018 17 8,693 7 (3,408) (19) 5,917 68 11 Depreciation & Amor. (3,527) (3) (3,167) (3) (3,649) (3) (360) 11 122 (3)12 EBIT 11,083 8 14,851 14 5,044 4 (3,768) (25) 6,039 120 13 Interest Exp.(Net int.earned) (1,325) (1) (1,351) (1) (1,375) (1) 26 (2) 50 (4)14 FX Gain(Loss) 1,036 1 (194) (0) 194 0 1,230 (634) 842 434 15 Share of gain from invest (42) (0) (1) (0) (138) (0) (43) 4,300 (180) 130 16 Corporate Income Tax (683) (1) (1,698) (2) 224 0 1,015 (60) (907) (405)17 Net Profit before Minority 10,069 8 11,607 11 3,950 3 (1,538) (13) 6,119 155 18 Earning attribut. to MI 217 0 445 0 (103) (0) (228) (51) 320 (311)19 Net Profit 9,852 7 11,162 11 4,053 3 (1,310) (12) 5,799 143

1Q/2555 1Q/2554 4Q/2554 YoY QoQ

Statement of Financial Positions

37

Non‐CA32,691

PP&E232,952

Equities218,554

CA94,064

Loans117,828

Cash24,115 Other

Liab.47,440

383,822 MB

Non‐CA32,387

PP&E235,343

Equities208,454

CA86,263

Loans120,165

Cash18,973

Other Liab.44,348

372,967 MB

December 31, 2011 March 31, 2012

1Q/12 4Q/11

ROA 7.48% 8.05%

ROE 13.14% 14.41%

Net IBD / Equity 0.42 0.47

Net IBD / EBITDA 1.80 1.80

Financial Ratio

2011 Q1 2012

0

5,000

10,000

15,000

20,000

25,000

30,000

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

PTTGC PTTUT PPCL Others

38

PTTGC Debts ~ Bt 117.83 bnPTTGC Debts ~ Bt 117.83 bn Repayment Schedule as at March 31, 2012Repayment Schedule as at March 31, 2012

Unit : MBaht

120,165

28,594(24%)

91,571(76%)

117,828Unit : Bt mn

31 Mar 12 ‐ Debt Structure & Cost • Cost of long term debts ~ 5.2% (Include W/H Tax)• % Total fixed‐rate long term debt ~ 53% (THB fixed‐rate debt ~ 42%, Interest rate ~ 5.4%,USD fixed‐rate debt ~90%, Interest rate ~ 5.3%)

• Average Loan Life after Refinancing 4.8 Years

THB USD & Foreign

30,551(26%)

87,277(74%)

Agency Credit Rating

Moody’s Baa2

S&P BBB

Fitch(Thailand) AA‐(TH)

Repayment Schedule after Refinancing

39

Recap and Looking Forward

1. Synergy benefits investment plans to pursue as planned

2. Pursue long‐term investment plan following 3‐pillar strategic direction

• Step into PU business via M&A with Perstorp expected to be completed by 1H/12

• Diversify into PLA business via JV with Natureworks expected to be completed by 1H/12 and build second plant potentially in Asia

3. Market GRM expected to remain strong at 5‐6 USD/BBL from less additional capacity in 2012‐2013

4. All plants are expected to run at full capacity with 2012 utilization rate of 90% Olefins and Derivatives, 100% Refining, and 89% Aromatics.

5. Obtained shareholders’ approval to issue bond up to USD 2 billion within 5 years to support the Company’s CAPEX of approximately USD 4.5 billion, which the remaining 2.5 billion will be derived from cash flow from operations

[email protected]

Thank You

40

Agenda

41


Business Units

Ethylene

Propylene

Mix C4

Pygas

HDPE

LDPE

LLDPE

PS

EO / EG

Ethanolamine

Ethoxylate

Phenol BPA

*TDI&HDI

Benzene

Paraxylene

Othoxylene

Mixed Xylenes

Toluene

Cyclohexane

LPG

Reformate

Light Naphtha

Jet

Diesel

Fuel Oil

OlefinsAromaticsRefinery Polymer EO Based

Green HVS Other Services

ME

Fatty Alcohol

Glycerin

Fatty Acid

Ozone Acid

Oil Fuel Chemical

Succinic Acid

D(‐) Lactic Acid

Plastic Additives

*Polylactic Acid

Tank Farms

Utilities

Logistics

Engineering

Technique

Consulting

42

* Under acquisition process

43

PTT’s Petrochemical Flagship

Leading Aromatics, Olefins and Polymers position

Strong feedstock position with Natural Gas, Condensate and Crude supply contract and Light Naphtha/C3,C4 from Refinery

(1) Includes PTT’s Phenol Capacity of 350 KTA (Phenol 200 KTA and BPA 150 KTA) proportionate by effective holdingsSOURCE: Companies’ Filings, Companies’ Website, Investor Presentations

(1)

Integrated Plant Covering Major Petrochemical Building Blocks with New Product Opportunities

Flexible FeedstockFlexible Feedstock UpstreamUpstream IntermediatesIntermediates DownstreamDownstream

Petroleum ProductsPetroleum Products

New Product Opportunities

44

Packaging, Films, Toys, Furniture, Construction

Health and Personal Care products,Pharmaceutical,

Textiles,Packaging, Furniture,

Bio‐Diesel

New Product Opportunities

Packaging, Electronic and Electrical Appliances,Automotives

Current Products New Product Opportunities

Product Applications

Automotives, Electronic and Electrical Appliances,Packaging, Construction,Paints

Automotives, Textiles, Agriculture

45

analyst briefing 1q/2012 operating resultsinvestor.pttgcgroup.com/misc/presn/20120516-pttgc... ·...

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