Analyst Meeting2008 Performance

Tuesday 3 March 2009

2

Agenda

2008 Management HighlightsOperation PerformanceCAPEX Financial PerformanceIndustry OutlooksConclusion & Strategy

3

2008 Highlights

Overview High volatilities in crude prices resulting from US financial crisis, an anxiety in global economic recession to cause slowdown in economic activities and also bubble burst in oil price speculations. Average crude cost is 73 $/bbl in 4Q08 comparing to 129 $/bbl in 3Q08 and average 102 $/bblin 20084Q08 average crude run 76%, 2008 average crude run 80%, decrease 8% from 2007 at 88%.Integrated GRM in 2008 at 7.4 $/bbl: Refinery 5.5 $/bbl, Petrochemical 2 $/bblUSD 78 million cost reduction in 2008

Selective projects of Phase II are currently implemented while Euro IV & Petroleum Improvement Project are under revision of economic returns

Finance Granted new THB 10,000 million 8-year term loan from 5 local banks for 5 new investment projects on 7 January 2009.Expected dividend in 2008 is 0.18 baht/share or 10% dividend yield, 2008 interim dividend 0.10Baht/share had already paid in September 2008Total shares increase 1.05% via ESOP exercised in 2008Invest in 25% shares of PTTPM in August 2008Changing accounting policy for inventory from LIFO to weighted average

Operation Commencing SAP on 1 July 2008Phase I projects: ABS and HDPE Expansion start test run in 1 January 2009.Managing risk by entering hedging contracts since August 2008

4

2008 Savings & Benefits

0

20

40

60

80

100

120

140

Uni

t: M

illio

n U

SD

SGS & Margin Improvement Review, USD 28 m

Crude & Feedstock Procurement, USD 24 m

Others, USD 2.2 m

Employee expenses saving, USD 26 m

Total USD 105 million

Gain from Swap & Hedging, USD 25 m

Recurring & Sustainable

5

Operation Performance

6

87% 86%90%

38%

68%

79%

89% 89% 89%83%

87%91% 93%

88%

82% 85% 83%88%

79%

66%

76% 78%73% 74%

80%81% 84% 82% 83% 84%

90%85% 85%85%

86%

0

20

40

60

80

100

120

140

160

180

200

JAN FEB MAR APR MAY JUN. JUL. AUG. SEP. OCT. NOV. DEC. Y. AVG.0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 Crude run 2007 Crude run 2008 Crude run 2006 % utilization 2007 % utilization 2008 % utilization

Capacity UtilizationKBPCD

Refinery Capacity Utilization

Petrochemical and Lube

0

100

200

300

400

500

600

700

800

Ethy

lene

Prop

ylene

Buta

diene

Benz

ene

Tolue

neMixe

d Xy

lene

SM

HDPE PP

ABS/

AS PS EPS

Lub

e Bas

e Oil

Asp

halt

0

20

40

60

80

100

120

140

160

Nameplate Capacity (LHS) Utilization 2007 (LHS) Utilization 2008 (LHS)

%Utilization 2006 (RHS) %Utilization 2007 (RHS) %Utilization 2008 (RHS)

3Q07 4Q07 2007 1Q08 2Q08 3Q08 4Q08 2008% Utilization 87% 90% 88% 84% 85% 74% 75% 80%

7

2008 Product Sales Value by Market

31% 38%

62%66% 55% 56% 69%

34% 44% 45%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

4Q07 3Q08 4Q08 2007 2008

Oil products Petrochemical products

41% 37%

59%58% 64%60% 63%

36% 42% 40%

0%10%20%30%40%50%60%70%80%90%

100%

4Q07 3Q08 4Q08 2007 2008

49,415 50,846 30,858 Unit:M.Baht15,830 17,000 9,532

Unit:M.Baht

31% 38%

69% 56% 57% 66% 62%

43% 44% 34%

0%10%20%30%40%50%60%70%80%90%

100%

4Q07 3Q08 4Q08 2007 2008

74%75% 74% 75% 72%

25% 27%24% 23%25%

0%10%20%30%40%50%60%70%80%90%

100%

4Q07 3Q08 4Q08 2007 2008

Petroleum Petrochemical Others

Unit:M.BahtOil & Petrochemical products

65,245 67,845 40,391Unit:M.Baht

Sales Proportion 40,97068,72766,051

Domestic Export

227,518 244,694

162,702 180,249 61,968 61,488

224,670 241,782

8

2008 Petroleum Product Sales1

,20

6

18

0

44

2

14

9

11

1

22

8

92

3

17

9 28

8

11

9

86

19

3

1,0

16

18

4

35

2

12

5

81 23

3

0

200

400

600

800

1,000

1,200

1,400

Diesel Mogas ATB/LR Naphtha Lube Others

4Q07 3Q08 4Q08

4,3

04

725

1,4

67

625

412

1,0

17

4,0

08

718 1

,350

422

379 849

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Diesel Mogas ATB/LR Naphtha Lube Others

2007 2008

28,9

18

4,76

2

7,03

8

3,24

5

2,79

9

2,65

4

28,4

68

5,29

3

6,44

3

3,12

9

3,73

2

3,78

0

17,1

49

2,93

5

3,73

8

1,01

3

3,19

8

2,82

5

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Diesel Mogas ATB/LR Naphtha Lube Others

4Q07 3Q08 4Q08

M. Liters M. Liters

M. Baht

92,6

70

17,8

17

19,2

63

11,6

87

10,9

40

10,3

26

105,

644

18,4

31

22,2

48

8,51

0

12,8

35

12,6

27

0

20,000

40,000

60,000

80,000

100,000

120,000

Diesel Mogas ATB/LR Naphtha Lube Others

2007 2008

M. Baht

Value

Volume

9

2008 Petrochemical Product Sales3

5,3

56

29

01

4

11

65

39

27

70

2

50

02

9

89

24

3

21

02

8

25

,16

6

19

,14

5

85

,42

3

29

,90

7 48

,08

0

74

,37

6

23

,43

4

31

,27

0

16

,50

7

93

,41

9

41

,38

7

34

,81

1

68

,58

9

17

,40

9

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

HDPE ABS PP PS Olefin BTX Others

4Q07 3Q08 4Q08

148,3

51

110,1

99

448,3

62

126,3

73 2

02,3

11

359,3

33

84,0

07

140,7

50

86,0

78

419,7

71

142,5

59

191,7

11

303,5

00

81,7

87

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

HDPE ABS PP PS Olefin BTX Others

2007 2008

1,69

6

1,73

5

5,53

6

1,39

0 2,05

1 2,63

9

783

1,48

9

1,36

0

5,47

9

1,70

4

2,93

9

2,83

5

1,19

4

1,09

4

954

3,22

0

1,46

5

916 1,33

5

547

0

1000

2000

3000

4000

5000

6000

HDPE ABS PP PS Olefin BTX Others

4Q07 3Q08 4Q08

6,9

56

6,5

26

20,9

92

6,2

75

7,6

55 10,5

01

3,0

63

7,0

11

5,3

71

20,9

80

6,5

93 8,9

16

9,4

42

3,1

77

0

5,000

10,000

15,000

20,000

25,000

HDPE ABS PP PS Olefin BTX Others

2007 2008

Volume

Value

Tons Tons

M.Baht M.Baht

10

CAPEX

11

Future Project ProgressAs of January 2009 CAPEX

Amount (Million USD)

Benefit/year (Million

USD/year)

% IRR Start Complete Progress Purpose

Phase IHDPE Compound 12.60 3 21% 2Q07 1Q09 99% Increase capacity from 17 KTA to 57 KTA

ABS Expansion 17.10 4 21% 2Q07 1Q09 100% Increase capacity from 96 KTA to 117 KTA

Power Plant 220.00 39 23% 2Q07 3Q10 44% CHP 216 MW for internal use, reduce power & steam cost, improve power stability

Safety Improvement 39.00 n/a n/a 2011 16%

Total 288.70 46

Phase IIABS Expansion 6 70.00 n/a 21% Increase capacity from 117 KTA to 200 KTA

New Reg_EURO IV 360.00 n/a 14% Comply to regulation

Petroleum Improvement

620.00 n/a 22% Increase capacity from 215 to 265 kbpd & improve product slate

Propylene Booster 88.00 n/a 36% 2009 2011 Increase capacity by 100 KTA

Port Dredging 46.00 n/a 16% Accommodate 300,000 ton VLCC

Total 1,184.00

Grand Total 1,472.70

On Revision

On Revision

On Revision

On Revision

12

Bagging MachineDust Collector Machine

Project Progress: HDPE Compound

• Overall Work progress 99%• Guarantee test will complete on 15 March 09• Commercial Run in March 09

13

Big-Bag Loading

Project Progress: ABS Expansion

• Overall Work progress 100%• Commercial Run in March 09

High-Speed Fluidizing Mixer

14

Financial Performance

15

5.38.7

3.2 1.94.3

7.15.0 6.4

-4.3

4.7 5.7 5.4

4.0

3.7

7.1

5.5

6.6

5.66.3 4.7

-3.4

5.25.8

2.0

5.2

6.94.2

5.74.1

5.4

11.09.6

11.0 10.89.9

11.5

7.4

-7.7

9.4

12.4

10.3

7.4

10.912.7

11.3

-8

-3

2

7

12

17

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

2006

2007

2008

GRMPetchem &others

GRM Oil

IntegratedGRM

2008 GRMUS$ / bbl

16

Financial HighlightsUnit: Million Baht 4Q08 4Q07 %YoY 3Q08 %QoQ 2008 2007 %YoYSales 40,969 66,051 -38.0% 68,727 -40.4% 244,694 227,518 7.5%Net Sales 39,682 62,420 -36.4% 67,837 -41.5% 237,319 211,088 12.4%Cost of Goods Sold (57,194) (58,042) (1.5) (65,707) (13.0) (242,294) (192,633) 25.8 Gross Profit (17,512) 4,377 -500.1% 2,130 -922.1% (4,974) 18,455 -127.0%Gross Margin -44.1% 7.0% 3.1% -2.1% 8.7%Other Revenue 548 126 343 1,307 538 SG&A (1,594) (1,646) -3.2% (1,157) 37.7% (4,521) (4,861) -7.0%EBITDA before LCM (18,558) 2,857 -749.5% 1,316 -1510.4% (8,189) 14,132 -157.9%EBITDA Margin -46.8% 4.6% 1.9% -3.5% 6.7%LCM (416) - (4,629) (5,045) - EBITDA after LCM (18,974) 2,857 -764.1% (3,313) 472.7% (13,234) 14,132 -193.6%Depre. & Amort. (784) (775) (803) (3,224) (3,078) EBIT (19,758) 2,082 -1049.0% (4,116) 380.0% (16,458) 11,054 -248.9%Net Interest Expenses (349) (156) (388) (1,235) (434) Pretax Profit (20,107) 1,926 -1144.0% (4,504) 346.4% (17,693) 10,620 -266.6%Taxes 7 (0) (21) (41) (31) Net Profit before Extra. (20,100) 1,926 -1143.7% (4,525) 344.2% (17,734) 10,589 -267.5%Doubtful Account 19 (60) (28) (25) 28 FX. Gain/(Loss), Swap (210) 273 246 (185.5) 514 1,306 (60.6) Investment Gain (Loss) (341) (480) (188) (1,154) 1,091 Asset Gain (Loss) 49 569 67 148 684 Other Expenses (1) (1) (1) (12) (14) Net Profit (20,585) 2,227 -1024.3% (4,430) 364.7% (18,262) 13,683 -233.5%No. Share (M.) 19,644 19,500 19,500 19,644 19,500 Norm. EPS (1.02) 0.09 (0.23) 344.2% (0.90) 0.54 -265.7%EPS (1.05) 0.14 (0.23) 364.7% (0.93) 0.70 -232.1%BV 3.52 4.76 4.56 3.51 4.76 8.9%

17

Balance Sheet:

61,388

48,798

17,642

82,953

15,071

29,804

62,311

58,191

12,673

92,777

21,945

18,454

64,276

30,848

8,988

69,195

8,190

26,728

2006 2007 2008

Interest Bearing Debt

Other Liabilities

Equities

Cash & S/T Investment

Other Assets

PP & E

Treasury policy :

Net Debt/Equity < 1.0x

Net Debt/EBITDA < 2.0x

133,175127,828

Current Status

= 0.26x

= (2.17)x

Unit: Million Baht

104,112

18

Key Financial Ratios

Note: EBITDA before LCM

4Q08 4Q07 3Q08 2008 2007

Liquidity & Leverage Ratio (Times)Quick Ratio 1.43 1.75 0.87 1.43 1.75 Total IBD / Equity 0.39 0.20 0.31 0.39 0.20 Net IBD / Equity 0.26 0.06 0.23 0.26 0.06 Liabilities / Equity 0.50 0.44 0.55 0.50 0.44 Net IBD / EBITDA (2.17) 0.42 1.47 (2.17) 0.42 IBD / EBITDA (3.26) 1.31 1.97 (3.26) 1.31 EBITDA / Interest Exp. (43.77) 9.67 3.33 (5.86) 12.77

Profitability RatioGross Profit Margin -44.1% 7.0% 3.1% -2.1% 8.7%EBITDA Margin -46.8% 4.4% 1.9% -3.5% 6.7%Net Profit Margin -51.9% 4.4% -6.5% -7.7% 6.5%ROE -26.4% 14.0% 3.5% -26.4% 14.0%ROCE -19.0% 11.7% 2.6% -19.0% 11.7%

19

Long Term Loan Facility

Objectives To finance 5 investment projectsHDPE Expansion ProjectABS Expansion Project216 MW Power Plant ProjectPropylene Booster ProjectABS Expansion 6 Project

Covenant Net IBD/E ratio: not exceed 1xDSCR: not less than 1.2x, starting from year 2009PTT holdings of IRPC equity shall not less than 25%

Drawdown 3-year grace period

Tenor 8-year syndicated term loan from 5 local banks

Interest Premium over 6M FRD, 6M THBFIX

Amount Baht 10,000 Million

20

Industry Outlooks

21

Summary Outlooks

Very volatile & continuing in a certain bandGeopolitical tension / Supply concerns / Growing demands

in Asia / US Dollar fluctuationThe weakness in global economy took a serious toll on

crude oil priceOPEC cut production to maintain oil price levelConsensus oil price projected in a band of 50-60 $/bbl in

2009

Crude Oil

No more enjoyableTagging along crude oil pricesDemand shrinked upon economic situation

Refined Products

Confront with deep downturn & basin shapeDemand distressed from economic recessionNew capacity addition from ME & China turn to exporterPrice tend to lower resulting from oversupply and shrink demand

Petrochemical Products

Facing a rough yearSub-prime crisis led to global financial crisisWorld growth is projected to fall to 0.5% in 2009 Financial stimulus packages launched i.e. USA & UK The slump in global demand led to commodity prices

collapse

World Economy

22

World Economy: Facing Deep Downturn“ A sustained economic recovery will not be possible until the financial sector’s functionality is restored and credit markets are unclogged ” - IMF

World growth is projected to fall to 0.5% in 2009 and gradually recover in 2010, with growth picking up to 3% while growth in emerging and developing economies is expected to slow sharply from 6.25% in 2008 to 3.25 % in 2009 – IMF

Financial sector remain under stress and pulling down the real economy.

Global output and trade plummeted in Dec 08 resulting from financial crisis decreasing household wealth and put downward pressure on demand

The slump in global demand has led to a collapse in commodity prices.

IMF’s petroleum price projection is revised down to 50 $/bbl for 2009 and 60 $/bbl for 2010

GDP Growth and Trend (%)

23

World Oil Demand/Supply: Influenced by Economy

82

83

84

85

86

87

88

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

M.b

pd

Total World Production Total World Consumption

Source: EIA, February 10, 2009

0

30

60

90

120

150

Jan-

90

Jan-

91

Jan-

92

Jan-

93

Jan-

94

Jan-

95

Jan-

96

Jan-

97

Jan-

98

Jan-

99

Jan-

00

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

USD/BBL

Gulf War: Iraq invades Kuwait (8/20/1990) Asian Economic Crisis Begins

(07/02/1997)

Iran escalates nuclear development

17

25

Dubai Crude (USD/BBL)

80

50

30

Oil prices driven by oil supply/demand fundamentals and financial markets.

Oil demand is falling in US and advanced economies

24

20

40

60

80

100

120

140

160

180

Jan06

Mar06

May06

Jul06

Sep06

Nov06

Jan07

Mar07

May07

Jul07

Sep07

Nov07

Jan08

Mar08

May08

Jul08

Sep08

Nov08

Jan09

Mar09

May09

Jul09

Sep09

Nov09

ULG 95 Gasoil HSFO Dubai

Price : $/BBL

$/BBL 2007 1Q08 2Q08 July08 Aug08 Sep08 3Q08 Oct08 Nov08 Dec08 4Q08 2008 Jan 09 13 Feb 09

93.57 44.12

52.23

58.36

38.74

102.64

44.43

65.34

49.91119.53

77.18 40.45

52.60

56.32

70.25

43.95

67.42

79.49

83.98

60.56

49.84

48.41

68.77

113.34

36.79

40.53

41.05

58.01

34.51

119.29

139.02

100.62

116.91

129.84

154.47

90.93

95.90

107.10

118.93

89.19

112.86

115.49

132.17

101.80

131.27

135.27

165.97

110.86

91.43

105.12

114.36

73.21

Dubai 68.34

ULG 95 83.48

Gas Oil 0.5%S 85.53

Fuel Oil 180cst 57.61

Note : 1. ULG95, GO 0.5%S & FO180 price from Platt’s (FOB Singapore).2. Dubai price from Platt’s (FOB source basis). 2

30 S/BBL

70 S/BBL

Refinery: Price volatility

25

6.50 6.30 7.77 9.14 10.56 8.82 7.95 6.09 5.44 7.489.62

6.01 5.83 6.55 8.47 10.137.54 6.65

4.62 4.068.37

6.341.42 3.21

5.95

(40)

(30)

(20)

(10)

0

10

20

30

40

50

ม.ค.07

ก.พ.07

มี.ค.07

เม.ย.07

พ.ค.07

มิ.ย.07

ก.ค.07

ส.ค.07

ก.ย.07

ต.ค.07

พ.ย.07

ธ.ค.07

ม.ค.08

ก.พ.08

มี.ค.08

เม.ย.08

พ.ค.08

มิ.ย.08

ก.ค.08

ส.ค.08

ก.ย.08

ต.ค.08

พ.ย.08

ธ.ค.08

ม.ค.09

S'pore GRM

ULG 95 -Dubai

Gas Oil 0.5%S - Dubai

FO 180 - Dubai

$/BBL 2007 1Q08 2Q08 Jul08 Aug08 Sep08 3Q08 Oct08 Nov08 Dec08 4Q08 2008 Jan 09 13 Feb 099.07 8.10

14.23

-5.39

25.96

20.91

5.48

-16.39 -3.98

3.72

17.65

-8.64

12.07

16.56

-6.86

-1.43

18.92

5.95

-13.05

0.52

17.47

-6.02

25.68

-12.72

12.93

37.56

-25.98

11.20

23.02

-6.71

2.64

19.31

-11.05

4.00

34.70

-20.41

13.69

22.93

-18.22

ULG 95 - Dubai 15.14Gas Oil 0.5%S

- Dubai17.19

Fuel Oil 180cst

- Dubai-10.73

Price : $/BBL

Spread: Less favorable, more volatile

3

26

Polyolefins: Naphtha drags polyolefin prices

-200

0

200

400

600

Jan-06 Aug-06 Mar-07 Oct-07 May-08 Dec-08

Source: ICIS

0

400

800

1,200

1,600

2,000

2,400

Ethylene Propylene HDPE PP

Naphtha

USD/MT

PP-PropyleneHDPE-Ethylene

$/MT 2007 1Q08 2Q08 Jul08 Aug08 Sep08 3Q08 Oct08 Nov08 Dec08 4Q08 2008 Jan 09 13 Feb 09

357 412

613

574

889

805

543

458

640

685

935

626

869

828 926

827

1,137

1,254

1,445

1,463

488

721

865

1,097

1,030

286

395

495

729

1,020

698

298

512

518

781

756

1,379

1,572

1,670

1,785

1,049

1,385

1,523

1,670

1,732

863

1,156

1,323

1,537

1,515

1,022

1,364

1,609

1,694

1,781

1,174

1,618

1,784

1,780

2,058

880

1,240

1,293

1,572

1,508

Propylene 1,153

Naphtha 704

Ethylene 1,179

HDPE 1,331

PP 1,334

Note : 1. HDPE , PP, Ethylene & Propylene price from ICIS LOR (CFR SEA) .2. Naphtha price from ICIS LOR (CFR Japan)

27

Polystyrenics: Demand remained poor

0

400

800

1,200

1,600

2,000

2,400

Styrene PS ABS EPS

-200

0

200

400

600

800

Jan-06 Aug-06 Mar-07 Oct-07 May-08 Dec-08

Naphtha

ABS-Feed ABS PS-Styrene

$/MT 2007 1Q08 2Q08 Jul08 Aug08 Sep08 3Q08 Oct08 Nov08 Dec08 4Q08 2008 Jan 09 13 Feb 09

827 412

642

785

1,055

805

1,294

458

740

865

1,085

1,468

1,831

1,496 870

357

701

1,030

1,462

993

488

926

1,377

1,837

1,336

286

583

897

1,388

1,020

843

298

593

816

1,162

799

1,523

1,724

2,129

1,765

1,049

1,549

1,639

1,952

1,705

863

1,421

1,621

2,060

1,659

1,022

1,510

1,730

2,145

1,769

1,174

1,638

1,820

2,183

1,868

880

1,402

1,478

1,782

1,519

Naphtha 704

Styrene 1,356

PS 1,459

ABS 1,700

EPS 1,512

Note : 1. PS, ABS, EPS & Styrene price from ICIS LOR (CFR SEA)2. Naphtha price from ICIS LOR (CFR Japan).

28

“4C & 1S”Cash, Credit Control, Customer, Cost reductionEconomy of “Speed”

Feedstock ManagementSmart inventory managementCrude diversificationHedging when appropriate: Crude time spread and crack spread Feedstock and product optimization

Operation ManagementJust-in-time inventory managementSearching new market to avoid price competitiveness Closely monitor customer credit risk

Synergy within PTT groupLogistic, Sales & Marketing, Inventory Management i.e. Swap location with alliance

Cost reduction to be continuedMIR & SGS

2009 Strategies:

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