or investor updates
TRANSCRIPT
Updated 26 March 2021
OR Investor Updates
PTT Oil and Retail Business Public Company Limited
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Disclaimer
IMPORTANT: The following applies to the information in connection with this presentation (this “Presentation”) by PTT Oil and Retail Business Public Company Limited (the“Company”). By viewing all or part of this Presentation, you acknowledge and agree to be bound by the limitations and restrictions described herein.
All information herein should be regarded as indicative, preliminary and for illustrative purposes only. Such information reflects prevailing conditions as at the date of this Presentationor the date as of which such information is given. No reliance may be placed for any purpose whatsoever on the information and opinions contained in this Presentation, or any othermaterials discussed at this Presentation, or on the completeness, accuracy or fairness thereof. You should not rely upon this Presentation or use this Presentation to form the basis forany decision, contract, commitment or action whatsoever. The Company shall not be liable for any direct, indirect, incidental, special or consequential loss or damage resulting from theuse of, or reliance on, any information or opinions presented in this Presentation or its contents, or otherwise arising in connection with this Presentation, including, without limitation,damages for loss of profits.
This Presentation contains forward-looking statements that may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “depends,”“projects,” “estimates” or other words of similar meaning and that involve assumptions, risks and uncertainties. All statements that address expectations or projections about the future,including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements.Forward-looking statements are based on certain assumptions and expectations of future events. The Company does not guarantee that these assumptions and expectations areaccurate or will be realized. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks,uncertainties and assumptions. Although the Company believes that such forward-looking statements are based on reasonable assumptions, it can give no assurance that suchexpectations will be met. Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication offuture performance. The Company undertakes no obligation to update, amend, modify or revise any forward-looking statements or to adapt them to changed circumstances, futureevents or other developments. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Youare cautioned not to place undue reliance on these forward-looking statements.No securities of the Company may be offered or sold in any jurisdiction in which such offers or sales may be unlawful. No securities of the Company may be offered or sold in theUnited States absent registration or an exemption from registration, or in a transaction not subject to, the registration requirements under the Securities Act of 1933, as amended (the“Securities Act”). The Company has not registered and does not intend to register any portion of any offering of securities under the Securities Act or the securities law of any state inthe United States or to conduct a public offering of securities in the United States.
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Agenda
• Key Highlights
• Financial Summary
: Oil Business
: Non-Oil Business
: International Business
: Financial Position
: CAPEX
• ESG, Outlook and Business Guidance 2021
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OR: PTT’s Flagship for Oil and Retail Company
Oil BusinessInternational
BusinessNon-Oil Business
Segment
Sub-Segment
• Retail
• Commercial
• Food and Beverage
• Other Non-Oil
• Cambodia
• The Philippines
• Other International Countries
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MNCs and domestic corporate customers
>2,600
# Retail fuel service stations inside and outside of Thailand
2,334 Stations
Oil volume sold in Thailand
24,400 mml
2020 Net Income
THB8.8Bn
2020 EBITDA
THB17.6Bn
2020 Sales Revenue
THB429Bn
International Presence
10 Countries
# Café Amazon stores inside and outside of Thailand
3,575 Outlets
Cups sold by Café Amazon inside and outside of Thailand
294 mm
Oil Business68.9%
Non-oil Business 25.5%
International Business
4.9%
Other Business
0.7%
2020
EBITDA
Breakdown
42.3%
10.9%10.3%
8.9%
6.1%
6.1%
4.7%
Others11.0%
Market Share 2020(1)
____________________Notes:(1) Total products excluding the amount of fuel oil sold to the Electricity Generating Authority of Thailand
Source: Department of Energy Business, Ministry of energy
Key Highlights
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Key Highlights
Investment Updates Started to See Signs of Recovery from COVID-19
Oil Business
▪ Volumes recovered since May, 2020, except for aviation fuel.
Non-Oil Business
▪ Café Amazon & Texas Chicken outlets closed in 2Q20 are reopened
▪ Number of cups sold and sales have grown
International Business
▪ Started to see recovery in fuel sales volume
Peaberry Thai
▪ Invested in 65.0% shares in Peaberry Thai, as backwards integration strategy
Joint venture with Central Restaurants Group in Vietnam
▪ Invested 60.0% shares in a JV with CRG, bringing Café Amazon into operations in Vietnam since Oct. 2020
COVID-19 Measurement
Safeguarding Employees
▪ Implement WFH policy and BCM plan
▪ Prevention measures at all business touchpoints
Responsibility towards Society
▪ Provided over 12,000 liters of cleaning alcohol and alcohol gel to 44 hospitals nationwide
▪ Provided 10,000 Cafe Amazon Muslin Mask to the Association of the Blind of Thailand
▪ Prevention measures at all customer touchpoints
Flash Incorporation
▪ Invested 9.58% shares in Flash Incorporation, expanding business opportunities in the Mobility and Lifestyle Ecosystems
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Agenda
• Key Highlights
• Financial Summary
: Oil Business
: Non-Oil Business
: International Business
: Financial Position
: CAPEX
• ESG, Outlook and Business Guidance 2021
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Key Factors
Thailand GDP
COVID-19Foreign Exchange Rate
Dubai
USD/BBL
THB/USD
Source: Monthly Rolling Jan 2021 by Prism (Average daily price)
4Q19 1Q20 2Q201Q19 4Q202Q19 3Q19 3Q20
Source: Monthly Rolling Jan 2021 by Prism (Average daily price)
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
63.5 67.4 61.2 62.1 50.5 30.6 42.9 44.6
2.8 2.4 2.71.3
-2.1
-12.1
-6.3
-4.2
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
2.3
-6.1
Source: www.nesdc.go.th
120
90
60
30
0
4Q203Q202Q201Q20
14-day notification rate of new cases in Thailand
Person
Good control of COVID-19Thai government stimulus package
Decline of international touristsRise in unemploymentDelay of vaccine
Source: www.nesdc.go.th
Avg. = 63.6
Avg. = 42.2
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146,793 104,854 109,496
577,134
428,804
4Q19 3Q20 4Q20 2019 2020
THB MM
1,948 3,450 2,923
10,896 8,791
4Q19 3Q20 4Q20 2019 2020
THB MM
3,222 5,782 5,096
17,005 17,619
4Q19 3Q20 4Q20 2019 2020
THB MM
(25.4)% YoY
+4.4% QoQ
+58.2% YoY
(11.9)% QoQ
+50.1% YoY
(15.3)% QoQ
(25.7)% YoY
+3.6% YoY
(-19.3)% YoY
Financial Performance SummaryQoQ: Soften net profit due to lower oil gross margin despite volume increaseYoY: Lower net profit from COVID-19 impact
EBITDA Margin
2.2% 5.5% 4.7% 2.9% 4.1%Net Profit Margin
1.3% 3.3% 2.7% 1.9% 2.1%
Total revenue
EBITDA Net Profit
Others (-35.1%)
Share of profit fr. investments in joint ventures & associatesProvision for credit loss (Thai Airways & Thai Smile Airways)Gain on exchange rate
Loss on derivatives (>-100%)
TFRS #9
Financial Cost & Income Tax (-12.7%)
Lower operating profit Cost of debt
Gross Profit (-2.8%)
Oil volume sold ( JET A1 )Oil margin/liter (0.89 to 0.97), F&B outlets expansion
Other Income & Operating Expenses (-9.2%)
TFRS #16 leasesCost savings
Depreciation & Amortization (+44.4%)
Service stations and Café Amazon outlets expansionTFRS #16 10
Financial Performance Summary
Gross Profit
Other Income & Operating Exp.
Depreciation & Amortization
Others
Loss on derivatives
Financial Cost
Income Tax
NI Decreases 2,105 (-19.3%)
NI 2019 NI 2020
THB MM
948 1,601 4161,171
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Oil Business
MM LitersMM Liters
15.6%
4.5% 5.6%
15.8%7.2%
40.7%
46.1% 46.6%
40.2%
46.3%
5.0%
5.9% 5.4%5.7%
5.7%
22.2%27.0% 25.7%
21.4% 24.7%
1.4% 1.6% 1.5% 1.5% 1.4%
4Q19 3Q20 4Q20 2019 2020
Lube Aviation Fuel Diesel
Fuel Oil Gasoline Others____________________Notes:(1) Thailand and Myanmar(2) Sales volume under retail and commercial segments are pre-eliminations
Outlets
3,119 3,263 3,367
12,079 12,5474,039 2,799 2,915
15,54811,853
7,158 6,062 6,282
27,627
24,400
4Q19 3Q20 4Q20 2019 2020
Retail Commercial
(12.2)% YoY
+3.6% QoQ
(11.7)% YoY
Number of Service Stations(1) Volume by Market(2) Volume by Product Types
Volume: Resilience in retail, but sluggish in jet fuel.
1,571 1,627
340 372
1,911 1,999
2019 2020
DODO Outlets COCO Outlets
+ 88 Stations
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Oil Business
____________________Notes:(1) Before eliminations
THB MM
5,850 7,333 6,554
24,686 23,594
4Q19 3Q20 4Q20 2019 2020
2,271 4,312 3,537
12,016 12,145
4Q19 3Q20 4Q20 2019 2020
THB MM
+12.0% YoY
(10.6)% QoQ
+55.7% YoY
(18.0)% QoQ
(4.4)% YoY
+1.1% YoY
THB MM
137,104 96,583 101,285
539,835
396,708
4Q19 3Q20 4Q20 2019 2020
63.6 42.2
(26.1)% YoY
+4.9% QoQ
(26.5)% YoY
62.0 42.9 44.6
Average Dubai Crude Oil Price for the Period (US$/barrel)
Source: PTT PRISM
QoQ: Lower EBITDA despite higher volume and stock gainYoY: Improved EBITDA from lower net operating expenses
EBITDA Margin
1.7% 4.5% 3.5% 2.2% 3.1%GP per liter(THB/liter)
0.82 1.21 1.04 0.89 0.97
Stock gain(loss)
(1,569) 166 2,539 (4,626) 25
Revenue(1)
EBITDA(1)Gross Profit(1)
4,568 4,443 4,618
17,016 16,867
2,646 2,802 2,936
9,461 10,334 1,922 1,641 1,682
7,555 6,533
-
5,000
10,000
15,000
20,000
4Q19 3Q20 4Q20 2019 2020
Food and beverage Other non-oil
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2,349 2,612
563678
1820
2,930 3,310
2019 2020
Franchise CoCo Others(1)
+ 380 outlets
Café Amazon Outlets Other F&B Convenience Store(2)
45 7872 70
164169
281 317
2019 2020
Pearly TeaHua Seng Hong Dim SumTexas Chicken
+ 36 outlets
1,880 1,977
29 29
1,909 2,006
2019 2020
Thailand Laos
+ 97 outlets
Café Amazon Cups Sold
70 72 74
264 274
4Q19 3Q20 4Q20 2019 2020
+3.8% YoY
+4.8 % YoY
+2.2% QoQ
THB MM
+51.2% YoY
+9.5% QoQ
(0.9)% YoY
+1.1% YoY
+3.9% QoQ
(1)
+5.6% YoY
Non-Oil Business
EBITDA Margin
19.6% 27.8% 29.3% 25.0% 26.6%
____________________Notes:(1) Includes outlets in Myanmar, Malaysia, Japan and Oman(2) CVS includes Jiffy in Laos(3) Before eliminations
(1)Revenue(3) EBITDA(3)
Outlets Number of Cups Sold Outlets Outlets
THB MM
QoQ: Improved EBITDA from cost efficiency in the F&B business YoY: Improved EBITDA, from cost efficiency in the F&B business and the impact of TFRS 16
410 786 897
2,343 2,858
486 451 458
1,912 1,637
896 1,237 1,355
4,255 4,495
4Q19 3Q20 4Q20 2019 2020
Other non-oil Food and beverage
31 77 65 181 187 55 135 63
498 554
(20)
28 4
43 122
66 240
132
722 863
4Q19 3Q20 4Q20 2019 2020
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International Business
14
7,7965,211 4,976
33,653
21,361
4Q19 3Q20 4Q20 2019 2020
THB MM THB MM
Philippines Cambodia Others(3)
Petroleum Product Sales Volume(2)
218 143 115
936 555 112 91 99
483
421
56 58 65
216
237
386 292 279
1,635
1,213
4Q19 3Q20 4Q20 2019 2020
Philippines Cambodia Others(3)
(25.8)% YoY
MM Liters
EBITDA(2)Revenue(2)
(36.5)% YoY
(36.2)% YoY
(4.5%)QoQ
+19.5% YoY
+100% YoY
(45.0)% QoQ
176 181
78 10648
48 302
335
2019 2020
17 18 134 167 65
70 4 10
220 265
2019 2020
5066
2019 2020
Network of Stations and Non-Oil Outlets
Stations/outlets
Fuel Station Café Amazon Convenience Store
+45 outlets +16 outlets+33 stations
Philippines Cambodia Laos Others(1)
(27.8)% YoY
(4.5%)QoQ
QoQ: Lower EBITDA from lower margin and higher SG&A, mainly from Cambodia YoY: Improved EBITDA mainly from lower SG&A in all countries
EBITDA Margin
0.8% 4.6% 2.6% 2.1% 4.0%____________________Notes(1) Include outlets in China, Singapore and Vietnam(2) Before elimination(3) Include Laos, China, and Singapore
64,291
61,585
26,300
2019 2020
38,708
16,257
42,800
54,411
37,915
17,275
30,120
59,669
2019 2020
Debt service coverage ratio
Net Debt / EBITDA
Net Debt / Adjusted equity
1515
Financial Position
2019 2020
Financial Position
THB MM
Total Assets Total Liabilities & Shareholder’s Equity
144,979 144,979152,176152,176
Financial Ratios
Times
Covenant ≤ 2.5
Internal Policy ≤ 2.0
1.9
5.6
Covenant ≥ 1.2
1.7 2.3
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CAPEX
Planned Capital Expenditure (THB Bn)
To Accelerate Growth and Expand Organically and Inorganically
Oil, 34.6%
Non-Oil, 28.6%
International, 21.8%
Others, 15.0%
Breakdown of Total Planned Capex (2021 –
2025)(1)
Total CAPEX 2021E – 2025E of THB 74.6bn
6.5 7.34.7 3.8 3.4
6.7 4.2
3.63.5 3.4
5.2
2.4
2.62.9 3.2
3.8
2.1
2.01.7 1.6
22.3
15.9
12.911.9 11.6
2021E 2022E 2023E 2024E 2025E
Oil Non-Oil International Others
____________________Notes:
(1) Breakdown of total planned CAPEX during 2021-2025
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Agenda
• Key Highlights
• Financial Summary
: Oil Business
: Non-Oil Business
: International Business
: Financial Position
: CAPEX
• ESG, Outlook and Business Guidance 2021
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Environmental, Social, and Governance (ESG)
Environment Governance
Promote green energy by offering bio-diesel
and EV charging service
Reduced 727.6 tonnes of plastic waste through
upcycling initiatives: BIO cups & straw, PLA cups, PET upcycled T-shirts.
Recognized for environmental safetysuch as Zero Accident award from 2018 to 2020 for oil terminals
Support Thai SMEs: provide spaces at ptt stations under “Thai Ded Project” for the
selling of local products
Conduct research on sustainable coffee
farming and educate local farmers
Strong corporate governance in line withPTT Group’s award winning framework
Professional management team
with full accountability
Established corporate compliance policy to ensure full transparency
Café Amazon in Thailand sources 100%
of coffee beans from Thai farmers approx.
5,100 tonnes from 3,500 farmers in 2020
Promote Equality & Social Inclusiveness: In 2020, we opened 10 Café Amazon for Chance outlets
and created 32 jobs for senior citizens and
people with disabilities
Society
Support SMEs and create jobs for Thais
Outlook 2021
2019A 2020 2021F 2022F
World 2.8IMF
-3.5 (F)
IMF
5.5 IMF
4.2IMF
Thailand 2.3NESDC
-6.1 (A)
NESDC
2.5 - 3.5NESDC
4.6IMF
China 6.1NBS
2.3 (A)
NBS
8.1IMF
5.6IMF
Cambodia 7.1World Bank
-2.0 (F)
World Bank
4.0World Bank
5.2World Bank
Lao PDR 4.7World Bank
-0.6 (F)
World Bank
4.9World Bank
4.8World Bank
Myanmar 6.8World Bank
-1.7 (F)
World Bank
2.0World Bank
8.0World Bank
Vietnam 7.0GSO
2.91 (A)
GSO
6.7World Bank
5.6World Bank
Philippines 5.9PSA
-9.5 (A)
PSA
6.6IMF
6.5IMF
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Supportive Factors
Challenges and risks
The uncertainty of the COVID situation and the delay in vaccination
Delays in the tourism sector recovery
Financial condition and labour market
Drought situation
World Economic Volatility
The recovery of the world economy and global trade volume
The rebound of domestic private demand
The government stimulus measures
The unusually low base effect in 2020
2019 2020 2021
Dubai $63.6 $42.2 $55.0 – 60.0
Oil Price (US dollars per barrel)
GDP Growth
The Thai economy in 2021 is projected to expand by 2.5% – 3.5%
____________________Sources:IMF = International Monetary FundNBS = National Bureau of Statistics of China/ GSO = General Statistics Office of Vietnam/ NESDC = National Economics and Social Development CouncilPSA = The Philippine Statistics Authority/ MTI = The Ministry of Trade and Industry, SingaporeGSO = General Statistics Office of Vietnam
COVID-19 Updates
Limited second wave of COVID-19 in some areasPartial lockdown allows for economic growth
Higher number of daily infectionsDelay of vaccine
7-day notification rate of new cases in
Thailand
Jan 20 Feb 20
Source: PTT PRISM
Source: NESDC
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Business Guidance 2021
Strong Financial Position to Accelerate Growth and Expand Organically and Inorganically
Key Expansion Plans
110 new
service stations
Replace terminals Expand 10
new outlets
Oil
Non-Oil
420 new
Café Amazon outlets
Expand 20 new Texas Chicken in Thailand
M&As/ JVs opportunities
International
82 new service
stations internationally
Expand 132 new
Café Amazon internationally
Enhance Portfolio Performance & Business Opportunities via M&As/ JVs
Objective Grow portfolio through partnerships with Thai SMEs, while leveraging OR’s capabilities to scale up
Non-Oil Portfolio: Synergy with OHKAJHU
Café Amazon projects progress: Central Bakery, Mixed Beverage Powder Plant and Distrbution Center
Brighter Energy Company Limited (BE) in Myanmar project progress: Petroleum Terminal and Jetty construction
: Dine-in & Delivery Stores at ptt stations
: Kiosk/ Grab & Go formatsfor Café Amazon outlets
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Business Guidance 2021
Strong Financial Position to Accelerate Growth and Expand Organically and Inorganically
Key Expansion Plans
120 new
service stations
Replacing terminal Expand 10
new outlets
Oil
Non-Oil
450 new
Café Amazon outlets
Expand 20 new Texas Chicken in Thailand
M&As/ JVs opportunities
International
59 new service
stations internationally
Expand 52 new
Café Amazon internationally
Enhance portfolio performance & Business Opportunity via Strategic partners
Objective Grow portfolio through partnerships with small/ medium Thai SMEs, leveraging OR’s capabilities to scale up
Non-Oil Portfolio: OR synergy with OHKAJHU
Café Amazon project progress: Central bakery, a mixed beverage powder plant and Distribution Center
Brighter Energy Company Limited (BE) in Myanmar project progress: Petroleum Terminal and Jetty construction
Q&A
