pride & treasure of thailand - listed...

Investor UpdateNovember 2015

Pride &

Treasure of

Thailand

Overview

Performance

Industry Outlook 2016

Overview Performance Industry Outlook 2016

Contents

1

Indigenous (20%)

Imported Refined Petroleum Products 66 KBD

909 KBD (**)

Source: PTIT

Remark : (*)Refined product from refineries = 955 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 100 KBD

(**) Not included Inventory

KBD = Thousand Barrels per day

Import (80%)

Crude/ Condensate891 KBD

RefinedProducts1055 KBD*

Domestic

Crude/ Condensate 246 KBD

Supply Production Sales

Export

211 KBD

Oil Balance Thailand: Jan – Sep 2015

246 KBD

Adequate refining capacity maintains the stability of supply

Total Refining Capacity in Thailand: 1,087 KBD

PTT’s Associated Refineries : 790 KBD

(TOP, PTTGC, SPRC, IRPC)

Other Refineries : 297 KBD(ESSO, BCP)

RefinedProducts211 KBD

2

Crude Export 0 KBD

957 KBD

Overview Performance 9M/2015 Outlook

Chevron28%

PTTEP30%

Others42%

Natural Gas Balance: Jan – Sep 2015

Gulf of Thailand (70%)

Power (60%)

Industry (14%)

NGV (6%)

Petrochemical Feedstock

(14%)

IndustryHousehold

Transportation(6%)

Ethane/ Propane/LPG/NGL

LPG/NGL

Remark: MMSCFD = Million Cubic Feet @ Heating Value 1,000 Btu/ft3

3,392 MMSCFD

Main driver of the Thai economy

Supply Production Sales

3

LNG28%

Myanmar72%

Bypass Gas878

MMSCFD

942 MMSCFD (20%)

Methane 1,572 MMSCFD

Onshore (3%)

142 MMSCFD

6 GSPsTotal Capacity

2,740 MMSCFD @ Actual Heat

Import (27%)

1,326 MMSCFD


81%

71%19%

29%

2001 2014

Revenue

Net Income

Affiliate

PTT

702

1,716

IPO

1 As of 16 November 2015 : Avg.THB/US$ exchange rate of 35.962 As of 30 September 20153As of December 2014

Largest company on Thai Stock exchange

Market cap ~US$46bn1 or ~ THB 1.6 trillion1

Group companies: 12.0%1 of Thai Stock Exchange market

capitalization

Majority owned by Thai government (66%)

51% by Ministry of Finance

15% by Vayupak Fund

Fully integrated and highly diversified over the entire O&G

value chain

International exploration and production business with 777

mmboe 3 of proved reserves in 2014

Sole operator and owner of gas transmission pipelines and

GSPs in Thailand

Largest refinery group in Thailand with stakes in 4 of 6

refineries in the country

Largest petrochemical producer group in Thailand with

stakes in 6 of 8 major petrochemical plants

Leading oil marketing business with 1,417 retail stations

and 40%2 of market share by volume

International oil trading business having traded 74.2 bn

liters 3 in 2014

Coal business assets in Indonesia, Madagascar, and

Brunei

New Power Flagship (GPSC) to capture opportunity in

neighboring ASEAN countries

PTT Public Limited Company (“PTT”) Robust revenue and Net Income growth since IPO (MMUSD)

12,553

87,223

International and local recognition

Thailand best borrower award

2014Best CEO

Best CFO

Best Managed Company

Best Corporate Governance

Best Investor Relations

Best Corporate Social

Responsibility

Best Commitment to Strong

Dividend Policy

SET Awards

Top Corporate

Governance Report

Award 2010 & 2011

Best Corporate Social

Responsibility Awards

2011 & 2012

93rd Fortune Global

500 in 201584th in 2014

81st in 2013

95th in 2012

Platts Top 250 Global Energy

Company

24th Overall Global

Performance in Asia of 2014

180th in 2014144th in 2013

167th in 2012

171th in 2011

Dow Jones Sustainability

Index (DJSI)

DJSI Member 2013-2014

(Listed in 2011)

4

PTT is Thailand’s Largest Energy Company


Ministry of Finance holds majority stake in PTT PTT ratings at Thai sovereign level

Thai Ministry of Finance

51%

VayupakFund1

15%

Public 34%

Kingdom of Thailand –FC

Baa1 BBB+ BBB+ A-

PTT – FC Baa1 BBB+ BBB+ A-

PTT – LC Baa1 BBB+ A- A

Largest market cap on the Thai Stock Exchange

Note: As September 2015

• Foreign 15%

• Thai 19%

PTT PTTEP PTTGC TOP IRPC GPSC Total Others

Market cap (BNUSD)2 21.8 7.9 7.2 3.5 2.4 1.0 43.8 371.6

% of SET 5.9% 2.1% 1.9% 0.9% 0.6% 0.3% 12.0% 88.0%

Moody’s rating Baa1 Baa1 Baa2 Baa1 Ba1 N.A. - -

S&P rating BBB+ BBB+ BBB BBB BB+ N.A. - -

PTT’s Strategic Importance to Thailand

5

1 The Vayupak Fund is a registered investment management fund in Thailand in which the Government is a major unit holder. The Government has rights of first refusal with respect to

any of our shares to be sold by the fund. Although the fund’s shareholding may be considered to be beneficially owned by the Government under international standards, such shares

are not considered to be owned by the Government for the purposes of Thai law or our compliance with certain of our debt covenants 2 Based on data as of 30 September 2015/ Avg. THB/US$ exchange rate of 35.96

5


http://www.jcr.co.jp/english/

http://www.jcr.co.jp/english/

Our Major Businesses & Activities

E&P

Gas

PTTEP 65.29% Exploration and Production

Upst

ream

Oil Marketing

Int’l Trading

Dow

nst

ream

Petrochemical

& Refining

PTTGC 48.91% Petrochemical Flagship

TOP 49.10% Integrated Refinery & Petrochemical

IRPC 38.51% Integrated Refinery & Petrochemical

SPRC 36.00% Stand alone Complex Refinery

Infr

ast

ructu

re

Coal

GPSC 22.58% Power Flagship

• Oil Marketing 100% Retail service Stations and commercial Marketing

• Int’l Trading 100% Import/Export/Out-Out trading of petroleum and

petrochemical products

Inte

rmedia

te PTT PLC

• Gas Pipeline 100% Sole owner/operator of the Transmission pipeline

• S&M 100% Supply & Marketing of Natural Gas

• GSP 100% Extracting Hydrocarbon contents in NG for Petrochemical’s feedstock

6

Business Areas ActivitiesCompany PTT’s holding (%)

6

PTT Energy Resources 100% Coal Business

Power


Pride & Treasure of Thailand

7


6,406 1,129

14,988

21,927

34,867

17,970

5,270

51,080

37,119

19,241

30,265

(23,688)

2,321

9,906

11,878

8,374

2,902

5,915

PTTEP

PTT

Others

Refinery

Petrochem

84,485

9M/15 Performance: PTT Group: still strong core operations despite impairment

8

MMTHB

*including petroleum exploration expenses and royalties

OilVol. increased 2% mainly from increased demand from lower retail prices

Performance decreased from stock losses

TradingVol. increased 5% from no major T/AMargin dropped 53% from condensate business

Higher performance mainly from PTTLNG,

PTTT, and divestment of BCP

Margin

FX gainOPEX*

Share of

income

Interest exp. & income taxes

Other Income

77%

19,748

NCI

PTTEP

Others

GasGSP and Industrial margin squeezed

better NGV performance NG Sale Volume increase 4% mainly from new IPPs

Impairment loss on assets Avg. selling price decreased 29% Sales volume increased 5%

Petrochem

Olefins business declined from Polymer price dropped Refinery’s margin increased 10% Aromatics improved P2F margin 16%

Refinery

Avg. A/C GIM increased 64%

Aggregate intake increased 14%

ImpairmentPTTEP (65.29%) 34,956

PTTGE (100%) 1,187Total 36,143

178%

48%

29%

327%

104%

9M/2014 9M/2015


Contents

Overview

Performance


9


E&P : Net loss in Q3 from settling once and for all the overhanging issue of impairment

Product Prices

Net Income (100%)

Sales Volume

Key Highlights

7.29 7.10 8.02* 7.47

59.3449.36

101.93

53.00

48.47 44.55

65.9347.22

Q2/15 Q3/15 9M/14 9M/15

Liquid ($/BBL)

Gas($/MMBTU)

Weighted Avg.($/BOE)

MMUSD

227 236 209 231

99 96104 97

Q2/15 Q3/15 9M/14 9M/15

332

Liquid

Gas

KBOED

326

10

* Gas price, if excludes Vietnam 16-1 retroactive sale recording, is 8.08$ for 9M14

** Average selling price, if excludes Vietnam 16-1 retroactive sale recording is 66.24$ for 9M14

313

Q3/15

QoQ

• Avg. selling price slightly decreased, mainly from lower oil price • Sales volume increased slightly from Myanmar gas field recovery

from shutdown in Q2/15• Net loss in Q3 from non-recurring items, i.e., loss on impairment

(1,385 MMUSD), deferred taxes from USD functional currency and FX loss; while operationally registered a net profit of 264 MMUSD

YoY

• Avg. price significantly decreased from a slump on oil price • Volume increased from Zawtika full production & Hess acquisition• Net income declined from loss on impairments and other non-

recurring items in Q3/15• Registered net loss of 986 MMUSD

17%

8%

5% YoY2% QoQ

9M/14

170% YoY3,769% QoQ

E & P Gas Oil & Trading Refining PetChem Others

3%

48%

28%

7%

328

9M/15

1,417

(986)(1,284)

35

*** Includes Impairment loss, Deferred tax from Functional currency, Current Tax from FX Revaluation, Gain/loss from Financial instruments, Gain/(loss)on FX, H1 incident Insurance Claim, and etc.

Q2/15

Non-recurring***

Recurring NI


11

E&P : RoadmapNew investment opportunities assessed against the “new normal” in price and cost


11

Business Unit Q2/15 Q3/15 QoQ 9M/14 9M/15 YoY

Gas- EBITDA 14,348 9,033 (37%) 45,120 32,643 (28%)

• S&M 3,145 1,260 (60%) 17,155 6,881 (60%)

• TM 6,784 4,541 (33%) 20,180 18,100 (10%)

• GSP 4,380 4,137 (6%) 16,372 9,433 (42%)

• NGV (2,488) (2,831) (14%) (15,102) (8,338) 45%

• Others 2,527 1,926 (24%) 6,515 6,567 1%

12

(Unit:MMTHB)

4,455 2,375 (47%) 11,760 10,757 (9%)

949 859 (9%) 5,400 2,548 (53%)

*MIS** Included Gas/Oil/Trading subsidiaries

12

Oil-EBITDA

Trading*-EBITDA

Total** 19,752 12,267 (38%) 62,280 45,948 (26%)

PTT EBITDA Performance Breakdown by BU’s:


8.60

8.35

8.82

8.60

Q2/15 Q3/15 9M/14 9M/15

3% QoQ

4,704 4,685

4,4974,469

4,450

4,768 4,731 4,802

4,832 4,879 4,822

Q1 Q2 Q3 Q41,297 1,105 1,252 1,177

930 1,067 790 1,003

752 765 701 746

902 949 934 945

689 636 656 665309 300 317 309

Q2/15 Q3/15 9M/14 9M/15

Gas BU: NG volume slightly lower from EGAT/ Industry sector/ NGV

NG Sales Volume* NG Customer Breakdown

2013

2015

2014

MMSCFD

EGAT (24%)

IPP (21%)

SPP (15%)

GSP (20%)

Industry (14%)NGV (6%)

MMSCFD

4,6504,879

AVG.

4,688

4,845

4,589

4% YoY

NGV Sales Volume

Vol. MMCFD

309 300 317 309

QoQ

• NG volume decreased mainly from lower power sector (EGAT) and industry sector demand.

• NGV demand was lower, following gradual price rise amid other petros’ falling prices

YoY

• NG volume increase mainly due to higher new IPPs and GSP gas demand

• NGV demand declined slightly due to gradual retail price adjustment amid lower oil prices

Key Highlights

4,845

1% QoQ

ที่เพ่ิมข้ึนเป็นของ

* NG Sales Volume include Inter-BA Transaction

K.Ton/Day

13

2% YoY


4,822


9M/14 9M/15 %YoY

LPG Ex-GSP 333 470 41%

Naphtha 855 451 -47%

Fuel Oil 603 317 -47%

Feed Cost 391 364 -7%

858 876 832

577

444

505

405

333 333 333 333

443 497

470 389 394 391

382 380359 352

610 607 591

437

318

367

265

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15

3,145 1,260

17,155 6,881

6,784 4,541

20,180

18,100 4,380

4,137

16,372

9,433

(2,488) (2,831)(15,102)

(8,338)

2,527 1,926

6,515

6,567

Gas - EBITDA

MMTHB

Others

TM

GSP14,348

Q2/15 Q3/15 9M/14* 9M/15

9,033

S&M

NGV

609 652

2,025 1,935 166 171

549 524

496 548

1,509 1,596

221 211

575 636

10 9

22

Q2/15 Q3/15 9M/14 9M/15

1,591

GSP Sales Volume

LPG (41%)

kTon

1,502

4,658

6% QoQ

1% YoY

Gas BU : Lower margin and one-time compensation pressured performance

QoQ

• GSP margin pressured by more petchem price decrease vs feed cost,

despite LPG price lifting

• GSP sales volume increased due to the return of GSP#1 from major

T/A

• EBITDA dropped from squeezed S&M and GSP margins, as well as a

one-time compensation to EGAT for 4th pipeline delay (charged on TM

and S&M)

YoY

• Lower EBITDA performance, mainly from GSP and S&M margin

squeeze, despite decreased NGV loss

Propane (13%)

NGL (11%)

Ethane (34%)

Key Highlights

37% QoQ

GSP Feed Cost vs Petroleum price

Naphtha

USD/Ton

Feed Cost***

LPG Ex-GSP*

* Effective on February 2, 2015** MOPS HSFO 180 CST*** Revised feed cost calculation from per sale volume to per GSP production volume

45,120

Pentane (1%)

28% YoY


4,713

32,643

14

Fuel Oil**

*Restated


Gas Business Roadmap

Key ProgressDemand & Supply

5th Onshore Gas Pipeline

Approved by NEPC and wait for the Cabinet approval within 2015

15

Commence gas flow on 17th Sep 2015

Design Capacity: 1,400 mmscfd

Customer: Power Plant, NGV,

Industrial Estate

4th Onshore Gas Pipeline

Construction completed 66.21%, consisting of Jetty and LNG tank

LNG Terminal Phase 2



0.91

0.60

0.82 0.77

Q2/15 Q3/15 9M/14 9M/15

841 775 2,039 2,362

3,614 1,600

9,721 8,395

Q2/15 Q3/15 9M/14 9M/15

4,455

11,760

2,375

10,757

Oil BU : Fallen oil price, hence stock loss weighed on performance

Contribution Margin 1/

MMTHBTHB/Liter

1/Excluded non–oil business

16

••

••

••

Oil

Non-Oil*


* EBITDA from Operating

6,214 6,158

18,448 18,758

Q2/15 Q3/15 9M/14 9M/15

Sales Volume2/

MM Liter

2/ Only PTT and PTTRM

6% YoY

2% YoY

9% YoY

(119) (1,765) (902) (3,113)

Petroleum Prices

Stock Gain/Loss(MMTHB)

34% QoQ

1% QoQ

Oil - EBITDA

USD/BBL

(Average Prices)

47% QoQ

104 106 101

74

5261 56

48 45

30

80

130

Q1/14 Q3/14 Q1/15 Q2/15 Jul Aug Sep


1st Platinum PTT station in Cambodia with plans to increase to 70 PTT stations within the year 2020 (currently 29 stations)

PTT Lubricants and IRPC entered Industrial Lubricants market in New Zealand


Oil BU : Overseas expansion continues

Laos

CambodiaPhilippines

Myanmar

PTT plans to expand the no. of stations in neighboring countries, especially in major ASEAN countries

Export to over 30 countries

17


62.60 49.58

104.18

54.89

14% QoQ

0.07 0.06

0.12

0.06

Q2/15 Q3/15 9M/14 9M/15

50% YoY

* PTT only : FX Adjusted

949 859

5,400

2,548

Q2/15 Q3/15 9M/14 9M/15

20,248 19,470

58,098 60,785

Q2/15 Q3/15 9M/14 9M/15

4% QoQ

Trading BU :Margin continued to be squeezed from sustained low oil price

Contribution Margin*

Trading - EBITDA*

Sales Volume

Key Highlights

MMTHB

MM Liter

18

QoQ

• Lower margins mainly from timing mismatch of paper settlement

• Sales volume lowered from decline in Out-Out activities supplied to Indonesia

YoY• Margins squeezed from sustained low oil prices • Sales volume increased mainly due to the absence of

refinery turnarounds in 2015. On the contrary, high GRM encourages refineries to maximize productions

• EBITDA declined, mainly from squeezed margins on domestic condensate

* PTT only : FX Adjusted

53% YoY


Contribution Margin (THB/Liter)

NWS ($/BBL)

47% YoY5% YoY

21% QoQ

9% QoQ


Trading BU :Contract with Petro-Ecuador - Growth Strategy Unlocked

GROWTH STRATEGYStep out into new markets for global coverage

GLOBAL TRENDUS Shale Renaissance changes Latin America crude trade flow

STRATEGY UNLOCKEDCaptured crude paradigm shift opportunity by proceeding long term Latin America crude supply contract with EP Petro-Ecuador

BENEFITs1. Support TBU’s aspiration on generating revenue by capturing opportunity in new region2. Sustainably establish business for prospective London office by developing new trading

network and new trading structure in Western region

CRUDE GRADEOriente / Napo Crude Oil

AGREEMENT PERIODJune 2015 – Dec 2020

TOTAL QUANTITY116.64 MMBBL

One extra SPOT in Sep 15

19


Stock gain/lossnet NRV

8,774 7,997

15,659

31,953

6,976

(10,013) (9,877)(6,251)

Q2/15 Q3/15 9M/14 9M/15

84%

91%

79%80%

**Performance BCP 4 mths

115 74

289

96

246 233

288 245

Q2/15 Q3/15 9M/14 9M/15

61.3 49.7104.0

54.3

6.97 5.51

3.58

6.93

9.70

1.78 2.98

5.43

13.14

5.76 5.22

8.58

Q2/15 Q3/15 9M/14 9M/15

GRM/GIM*

Refinery Utilization*

USD/BBL

A/C GRM

A/C GIMMkt GRM

Dubai

Net Income (100%)

U-Rate (%) Q2/15 Q3/15 9M/14 9M/15

Aggregated U-Rate

99 97 88 98

TOP 107 107 95 107

IRPC 89 83 79 85

Aggregated Intake (KBD) 653668

2% QoQ

578

AromaticsAromatics Production

BZ-ULG95

PX-ULG95

Refining BU:Stock losses dented Q3 performance

20

BZ: 36%

QoQ

PX: 5%

2.81 -4.32 -1.34 -1.68StockGain/Loss

T/A(23 days )

BZ: 67%

YoY

PX: 15%


A/C GIMQoQ: 56%

YoY: 64%

USD/Ton

657

14% YoY Total NIYoY345%

T/A

(46 days)

*Adjusted to exclude BCP

IRPC

TOP

SPRC

BCP

15,750

(2,016)

5,782

25,702

Total NIQoQ113%

OperatingIncome

Operating NIYoY104%

Operating NIQoQ9%


Refineries : Projects Updates

21

Ongoing Projects:

LABIX : 99% progress

COD: 1Q16

SPPs : 97% progress

COD: 2Q16

(2 SPPs: Total power capacity 239 MW)

UHV: 98% progress

COD: Dec 2015

PPE+PPC: (Total PP Capacity 775 KTA)

COD: 2H17

Status

Total investment = $236.5 MM

• EPC awarded with Sinopec : May, 2015

IPO: during IPO Roadshow

(Targeted Listing will be in early Dec 15)



http://www.thaioilgroup.com/

http://www.thaioilgroup.com/

22

5.40 4.16 4.24

5.16

7.59

0.91

3.84 4.22

Q2/15 Q3/15 9M/14 9M/15

100% 101% 102% 101%

A/C GRM 10% YoY

85% 57% 84% 77%

1,375 1,234

1,576

1,266 1,343 1,135

1,587

1,209

Q2/15 Q3/15 9M/14 9M/15

271 235

394

241

391 397 400 374

Q2/15 Q3/15 9M/14 9M/15

Net Income (100%)

Aromatics

Unit : MMTHB

7,3898,974

4,4851,207

26,780

20,152 20,143

15,8122,325

-3,064 -2,259 -2,100

Q2/15 Q3/15 9M/14 9M/15

PTTGC

HMC

Others

1,421

Olefins U-Rate89%

93%87%

93%

Olefins

USD/Ton

BTXU-Rate

Refineries

CDU U-Rate

A/C GRMMkt GRM

BZ-CondPX-Cond

2.22 -3.22 -0.86 -1.62StockGain/LossNet NRV

Petrochemical BU:Lower performance from stock loss and pressured petrochemical prices

9,714

HDPEPrice

PPPrice

HDPE: 10%

QoQ

PP: 15%

BZ-Cond: 13%

QoQ

PX:-Cond 2%

BZ-Cond: 39%

YoY

PX-Cond: 7%

HDPE: 20%

YoY

PP: 24%


216 183 178 207

USD/TonUSD/BBL

Mkt P2FQoQ 15%Aromatics

Mkt P2F

A/C GRM 88% QoQ

Mkt P2FYoY: 16%

24,521

18,043

Total NIYoY26%

Total NIQoQ85%

Operating Income

Stock Gain/loss net NRV-PTTGC

Operating NI YoY25%

Operating NI QoQ39%


Petrochemical : Strategic Plans : Major Projects


23


16 14

-3-1Q2/15 Q3/15

113

73

86

9M/14 9M/15

Other Businesses : Coal - SAR (95.26%)Additional cost reductions relieved the effect of price decline

EBITDA & Net Income (100%)

Sales Volume

Key Highlights

MMUSD

USD/Ton

1,372 1,179

5,128 4,519 316 446

2,474

1,335

1,688 1,625

7,602

5,854

Q2/15 Q3/15 9M/14 9M/15

kTon

Jembayan

Sebuku

Avg. Selling Price

Cash Costs

4% QoQ

Avg. Selling Price & Cash cost

New Castle

4%

23% YoY

25%

Q2/15 Q3/15 9M/14 9M/15

EBITDA 13%

2%

17%

15%

16%

9%

QoQ• Cash cost decreased mainly from: - Additional cost savings from further negotiations with

contractors as well as lower fuel cost from lower diesel price- Sales of coal produced from previous quarter

• NI increased mainly from the decrease in depreciation from lower production volumes

YoY• Sales volume decreased as coal price dropped from

oversupply

• Cash cost improved from cost saving initiatives, reduced admin costs and mine plan review 24

NI 67%

QoQ YoY

YoYQoQ

35%


56

5553

65

55

34

4638

43

39

66 60 59

73

61

Q1/15 Q2/15 Q3/15 9M/14 9M/15

EBITDA

NI


http://www.straitsasia.com/


474566

1,181

1,571

Q2/15 Q3/15 9M/14 9M/15

Net Income (100%)Sales Volume

Key Highlights

MMBahtGWh 33% YoY

Other Businesses : Power - GPSC (22.58%)

Better performance supported by dividend income from affiliate

1,842

1,038

4,061 4,505

1,254 1,117

3,702 3,604

Q2/15 Q3/15 9M/14 9M/15

‘000 Ton


Capacity

Power 11%

Steam 11%

Steam 3%

19% QoQ

QoQ

• Lower sales volume due to Sriracha plant’s Combustion Inspection (CI), EGAT’s dispatch instruction to reserve for shutdown as well as customers’ maintenance shutdowns (PTTGC ARO 2/ TOCGC).

• Higher net income from dividend income of 288MB from RatchburiPower (RPCL).

YoY• Higher power sales volume as there was a major maintenance

shutdown of Sriracha plant in Q1/14 which also caused higher repair and maintenance costs.

• Better performance due to increased power sales and dividend received from RPCL in Q3/15.

PowerSteam

Power 44%

25

Diversified Assets

QoQ

YoY

Natural Gas Hydro Renewable

1,517 MW(79%)

347 MW(18%)

53 MW(3%)

Natural Gas Hydro Renewable






Other Businesses : Power – GPSC (22.58%)CUP-4 Project (Growth alongside PTT Group)


26

26

CUP-4 Phase 1

Name: Central Utility Plant Project 4 (CUP-4)

Type: Gas-fired Cogeneration Power Plant/ Utilities

Location: PTT’s WEcoZi, Asia Industrial Estate (AIE), Rayong

Province

Estimated Capacity: Phase 1: 45MW, 70 T/H (up to 390 MW,

900 T/H)

Investment: <4,000 THB MM

SCOD: Later Q1/2018

COD

Approximately

in November

2015


23,746

(26,582)

84,485

19,748 19,903 9,039

82,874

50,438

Q2/15 Q3/15 9M/14 9M/15

47%

17%

6%

13%

16%1%

PTT - Oil &

TradingPTT - Gas

Others

PTTEP

61.3 49.7104.0

54.3

PTT Consolidated Performance: 9M/2015

Dubai (USD/BBL) 9M/159M/14

36%

44%

14%

3%3%

46%

14%6%

15%

17%2%

PTT - Oil & Trading

PTT - Gas

Others

PTTEP

536,678 505,066

2,039,086

1,557,327

Q2/15 Q3/15 9M/14 9M/15

-120%

98%

42%

50%

30%

PTT

PetChem

Others

PTTEPRefining

Net Income

Unit : MMTHB

EBITDA

Net Income

RevenueRevenue

EBITDA

53%

13%

6%

12%

16%0%

56%

19%

5%

15%

3%2%

Revenue

EBITDA

Net Income

87,61059,730

240,277 219,079

Q2/15 Q3/15 9M/14 9M/15

27

PetChem

Refining

PetChem

Refining

24%

6%

32%

9%

Recurring NI39%

Total NI212%

19% 48%

Recurring net income = Net Income adjusted one-time transactions

Recurring NI 55% Total NI

77%

Recurring Net Income

Net Income


0.39 0.35

1.401.38

0.00

0.50

1.00

1.50

2.00

(0.1)

0.1

0.3

0.5

0.7

0.9

2014 Q3/15

Other Liabilities

PP&E

Others Non-

currentAssets

OtherCurrentAssets

L/TLiabilities(incl. due within 1 yr)

TotalEquity

MMTHB

Cash & S/T Invest

31 Dec 13 30 Sep 14

1,805,041 1,818,746

Statement of Financial Position

PTT Ratings at Sovereign Level

− FC : Moody’s (Baa1), S&P (BBB+),

JCR (A-), FITCH (BBB+)

− LC : Moody’s (Baa1), S&P (BBB+),

JCR (A), FITCH (A-)

Net Debt/EBITDA ≤ 2.0

Net Debt/Equity ≤ 1.0

1,105,147 1,130,082

441,067 424,685

387,484 358,668

316,757 312,745

1,054,694 1,087,773

697,000 663,779

498,761 474,628

1 2 3 4 5

1%

2,226,1802,250,455

30 Sep 1531 Dec 14

Assets slightly declined :

• Drop in trade A/R primarily from international

trading and oil business

• Drop in inventory mainly from legal reserve volume

of finished product

• Decrease in L-T investment from disposal of BCP and

capital reduction of SPRC

28


7.71 8.75

13.43

22.40

30.5734.14 34.82

18.3321.06

29.58

37 24 36.5832.52

19.3316.08

2.50 2.85 4.006.75

9.25 10.50 11.508.00 8.50

10.2513.00 13.00 13.00

11.00

6.00

25% 25%

32.4% 32.6% 29.8% 30.1% 30.3% 30.8% 33 0%43.6% 40.4% 34.7% 34.9% 35.5% 40.0% 56.9% 37.3%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H2015

Dividend Policy & Historical Payments

PTT’s minimum payout ratio

PTT is firmly committed to pay dividend at no less than 25% of net income

Baht / share

EPS

DPS

Dividend payout

29

Overview Performance 2H/2015 Outlook

34,885 29,97219,398

33,876 40,008 36,751

9,1498,827

4,708

7,0402,882

2,777

3,3112,780

5,763

2,214 1,1771,222

24,416

12,041

9,034

19,432 16,906 18,169

5,519

2,043

22

19 157

Gas 55%

Oil &Trading

R&D, Others

5%

M&A and

Investment Oversea

1

LNG

8

Infrastructure 2%

Unit: MMTHB

PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 299 bn* ($9bn) during 2015-2019

CAPEX Breakdown : 5 Years

By Business Unit

JV &

Investment in

Subsidiaries

29%

30

30

* 2015-2019 budget approved by NESDB at YE2014

Revised

38,92560,988 58,926

77,28062,58155,663

2015 2015 2016 2017 2018 2019

Infrastructure

Investment in JV & Sub.

R&D and Others

Oil & Intl Trdg

Natural Gas

PTT 5-Years CAPEX Plan ̴Bt 299 bn

2015 Estimated Spending**

50,969

** 8 Months Actual + 4 Months Estimated

CAPEX revision Y2015:

• CAPEX lower by ~ THB 22 bn from THB 77 bn previously

• Reduction mainly from:

Postpone new oversea investments

Adjust plan for new LNG receiving terminal project

• While maintaining 5-years CAPEX of Bt. 299bn


Overview

Performance


Contents


31

32

LNG Price Outlook and Key Drivers 2016

Bull Bear

• New LNG demand from emerging countries in South East Asia, Middle East, and Eastern Europe

• Positive outcomes from United Nation climate change conference in Paris (Nov)

• Faster-than-expected depletion of indigenous gas in Europe/Asia/South America

• EU policy for guidance of emission trading system (EU ETS) and gas diversification from Russia

• New LNG supply from Australian and US projects (GLNG, APLNG, Gorgon, and Sabine Pass)

• Restart of nuclear power plants in Japan and new commercial operation plants in Korea

• Wildcard LNG projects in Angola and Yemen might start up their production in 2016

• Existing gas price structures in India and China discourage domestic gas consumption

Henry Hub Outlook 2016 LNG Price Outlook 2016

LNG Market Key Drivers for 2016

Source: Wood Mackenzie, PIRA Remark: HH excludes liquefaction fees and freight costs

HH 2016 2.7 – 3.2 $/MMBTU

Long term LNG Price7 – 9 $/MMBTU

Spot LNG Price6 - 7 $/MMBTU

Price divergence

32


33

PRICE SCENARIO

Sources: PRISM Business Plan (Oct.,15), IEA, EIA, OPEC, PIRA

Bearish global economy ButDemand Growth remains.

Shale cutback offsets Rising OPEC Supply.

Due to stock over hang, the market will start to tighten in 2H16.

FED Tightening Policy encourages volatile capital flow.

30.00

40.00

50.00

60.00

70.00

80.00

2015 Q1/16 Q2/16 Q3/16 Q4/16

$/BBL

Dubai Crude Price ScenarioCrude Oil Fundamental

92.00

93.00

94.00

95.00

96.00

97.00

2015 2016

MMBD

Demand

Supply

+1.83

+0.97

BALANCE PRISM Dubai Price Outlook 2016Assumption Brent – Dubai Spread Average = $1.5/BBL

BULL CASE

BEAR CASE

PRISM VIEW

$53 - $56

33


REFINING BUSINESS

Source: PTT International Market Analysis Team, Energy Aspects, IEA

Total CDU and Condensate Splitter Capacity Additions/Closure

• Slowing global economy causes projects stalling. Lower refining capacity additions than earlier is expected before oil prices begin to flatter, especially in China.

• High crude inventories will continue to give refinery sector an edge over other sector in the energy business.

• PTT expects 2016 refinery margins remain stable (around 7-8 $/BBL) compare to year 2015.

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

2015 2016 2017Africa Europe FSU Middle East Latin America North America Asia Total

MMBD

THE GOLDEN AGE REMAINS?

34


2015 Asia crackers by capacity and age Ethylene and PE Margins Slightly Decline

513 501 579 590 547

834

524 464601 529

116 121126

234161 264

267170

188

1,556 1,569 1,604

1,448

1,188

1,375

1,2341,170

1,2421,1941,440 1,447 1,478

1,214

1,026

1,386

970 9031,072

1,006

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 . 2015 2016

USD/MT

HDPE-Ethy.

Ethy.-MOPS

HDPE Price

Ethylene Price

72% 74% 76%61%

72%

0%

20%

40%

60%

80%

-

2,000

4,000

6,000

8,000

2010 2011 2012 2013 2014

Total Capacity Domestic Demand Operating Rate (%)

Iranian Crackers Run at Low Rate during Sanction

KTA Operating Rate (%)

Source : IHSSource : PRISM, Oct2015

Olefins Outlook :Ethylene/PE: Margins to be Softer than This Year

Risk emerge after the lifting of Iran sanction next year. Iran will return to be one of key players with a very competitive feedstock

Old and uneconomical crackers in Japan will be closed by 2016 (2 Plants, 1,042 KTA)

China’s CTO/MTO projects still have several challenges such as limited economic growth, technical issues, environmental issues

0.0

0.5

1.0

1.5

0 10 20 30 40 50 60 70

China Japan Korea

Taiwan India SEA

Cracker Age in 2015, Years

Capaci

ty, m

tpa

Source : IHS 35


Economics Oil & Refining LNG & Gas Petrochemical

Source : IHS

Propylene Margins Decline from Market Pressure

442333 402 408 354 388

289117

296 281

1,3691,279 1,301

1,032

833940

736

556

766 758

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15 . 2015 2016

USD/MT

Propy.-MOPS

Propylene Price

Source : PRISM, Oct2015

On-Purpose Production, Drive Propylene Market

Steam Cracker

7%FCC15%

PDH42%Metathesis

3%

MTO/CTO33%

2015-2019 Propylene capacity additions by

sources (30 Million Ton)

MT

54 57 59

31 37 40

4

9 19

4

5

6 5

12

0%

5%

10%

15%

20%

25%

30%

0

20

40

60

80

100

120

140

160

2010 2015 2019

Steam Cracker FCCPDH MetathesisMTO/CTO Other% On Purpose

% On Purpose

Olefins Outlook :Propylene: Oversupply from New On-purpose Units Depresses Margin

2016 global operating rate will decline both of Propylene and PP due to capacity addition of propylene still outpace demand growth since 2014.

According to the Chinese Government self-sufficient policy, numbers of MTO/CTO plants gradually increase supported by subsidies and PDH plants are also gradually started up in China to fulfill future NEA demand growth.

China will be able to improve self sufficient ratio of PP to above 90% in next 5 years.

Structure Change of PP and Propylene market after huge investment in On-Purpose

On-purpose units have many challenges

• PDHs in China mostly rely on high cost propane import from Middle East and US.

• China’s CTO/MTO projects still have several challenges such as limited economic growth, technical issues, environmental issues.

36

Aromatics Outlook :PX Market Surplus Pressures Margin

PX Capacity also Outstripped Demand

2016 global operating rate will decline as capacity addition still outpaces demand growth

Overcapacity will force more rationalization

Lower oil prices reduce production costs

PX spreads are expected to be held at low levels

335 290424 353 325 363 353 351 378 367

1,262 1,2361,323

977

805915

799 790 848 844

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 . 2015 2016

USD/MT

PX -MOPS

PX Price


PX Cost and Competitiveness

0200400600800

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

5 10 15 20 25 30 35

Integrated ME and US

New Integrated

Asia

Older/Smaller NEA

EuropeSmall and Non-

integrated

PlantClosure

USD/MT

Cumulate Capacity (Million Ton)

Source : IHS

1.0

1.7 1.9

77.4%76.8%

76.0%

70.0%

71.0%

72.0%

73.0%

74.0%

75.0%

76.0%

77.0%

78.0%

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2014 2015 2016

Africa Europe Indian Sub. Middle East

N. America NEA S. America SEA

Demand Operating Rate

Unit : Million Ton Operating rate : %

5.0

2.2 3.0

Source : IHS 37


Aromatics Outlook :BZ Remains Strong Thanks to Shale Gas

Stable Demand Growth from Derivative Support BZ Market BZ spreads are expected to be held at low levels

372 346 406 329191 250 216 152 211 219

1,299 1,292 1,305

953

671

803

662 591 682 696

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 . 2015 2016

USD/MT

BZ -MOPS

BZ Price

Lighter Cracker Feedstock Reduces Benzene Output

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Ethane Propane Butane LightNaphtha

HeavyNaphtha

Gas Oil

Ton BZ per ton Ethylene

Lighter Feedstock

Source : IHS

0.81.1

1.171.1%

71.8%

72.7%

69.0%

70.0%

71.0%

72.0%

73.0%

-1.0

0.0

1.0

2.0

3.0

2014 2015 2016

Africa Europe Indian Sub. Middle East

N. America NEA S. America SEA

Demand Operating Rate

Unit : Million Ton Operating rate : %


The benzene market is inherently unbalanced with inelastic supply, nonintegrated demand and growing deep sea trade

2016 global operating rate will improved from 2015 operating rate due to demand growth outpace supply growth

Lighter feedstock reduces benzene output

2.3

0.7

1.1

Source : IHS 38


Thank youPTT Public Company Limited – Investor Relations Department

Tel. +66 2 537-3518, Fax. +66 2 537-3948, E-mail: [email protected] Website: http://www.pttplc.com

Disclaimer

The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking

statements that reflect our current views with respect to future events and financial performance. These views are based on assumptions subject to various risks and

uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ

materially from those projected.

Petroleum Reserves and Resources Information

In this presentation, the Company discloses petroleum reserves and resources that are not included in the Securities Exchange and Commission of Thailand (SEC) Annual

Registration Statement Form 56-1 under “Supplemental Information on Petroleum Exploration and Production Activities”. The reserves and resources data contained in

this presentation reflects the Company’s best estimates of its reserves and resources. While the Company periodically obtains an independent audit of a portion of its

proved reserves, no independent qualified reserves evaluator or auditor was involved in the preparation of reserves and resources data disclosed in this presentation.

Unless stated otherwise, reserves and resources are stated at the Company’s gross basis. This presentation may contain the terms “proved reserves”, “probable reserves”,

and/or “contingent resources”. Unless stated otherwise, the Company adopts similar description as defined by the Society of Petroleum Engineers.

Proved Reserves - Proved reserves are defined as those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable

certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government

regulations.

Probable Reserves - Probable reserves are defined as those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be

recoverable.

Contingent Resources – Contingent resources are defined as those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from

known accumulations, but which are not currently considered to be commercially recoverable. The reasons for non commerciality could be economic including market

availability, political, environmental, or technological.

39

39

mailto:[email protected]

http://www.pttplc.com/

40

Debt Profile : Control Cost & Manage Risk

Debt Portfolio

Managed debt according to financial risk and policy

ConsolidatedPTT OnlyUnit : MMTHB

: Cost of debts ~ 4.62%: % fixed-rate ~ 75%: Avg. debt life ~ 8.34 years

: Cost of debts ~ 4.44%: % fixed-rate ~ 70%: Avg. debt life ~ 7.40 years

181,399 204,560 191,998 208,298

384,548 387,935

125,972 83,985 81,861

259,665

305,127 268,304

307,371 288,545 273,859

467,963

689,675656,239

31 Dec 13 31 Dec 14 30 Sep 15 31 Dec 13 31 Dec 14 30 Sep 15

USD THB

(35%)

(65%)

(29%)

(71%)

(30%)

(70%)

(49%)

(51%)

(44%)

(56%)

(41%)

(59%)

Note : Data as of 30 Sep 15 (THB/USD = 36.5344 THB/JPY = 0.306478) Excluding liabilities from finance leases; Cost of debts includes withholding tax.

40Cost of debts, % fixed rate, and avg. debt life took into account the derivative transactions. Debt outstanding is reconciled with accounting.

41

Free Cash flow

59,687 49,440

Financing (47,378) (63,745)

Repayment Loans (15,815) (23,268)

Interest paid (9,547) (9,076)

Dividend paid (22,849) (31,401)

Received from share issue - -

Received from loans/Bonds 833 -

Investing9M/1413,420

9M/151,346

CAPEX (PP&E, Intangible asset) (21,639) (27,881)

Investment (Sub. &Affiliates) 1,034 12,067

Current investment 1,366 (8,047)

Dividend/Interest Received 29,749 23,724

Others 2,910 1,483

Operating9M/1446,267

9M/1548,094

Net Income 49,963 43,355

Changes in assets & liabilities (9,247) 10,966

Income Tax (1,983) (4,589)

Non-Cash Adjustment 7,534 (1,638)

Ending Cash & Cash Equivalents

76,235 43,741

Beginning Cash and Cash Equivalents

63,927 58,018

Cash In/(Out)

12,308 (14,277)

Adjustment

(1) 28

Statements of Cash Flows (PTT Only) : 9M/2015

41

Free Cash flow

73,740 45,052

Investing9M/14

(130,855)9M/15

(158,930)

CAPEX (PP&E, Intangible asset) (126,123) (129,116)

Investment (Sub. &Affiliates) (28,135) 13,993

Current investment (3,734) (60,522)

Dividend/Interest Received 14,900 12,135

Others 12,237 4,580

Operating9M/14

204,5959M/15

203,982

Net Income 84,485 19,748

Changes in assets & liabilities (8,452) 14,867

Income Tax (49,630) (40,969)

Non-Cash Adjustment 178,192 210,336

Ending Cash & Cash Equivalents

226,314 169,678

Beginning Cash and Cash Equivalents

196,854 234,212

Cash In/(Out)

29,460 (64,534)

Adjustment

(1,767) 11,972

Financing (42,513) (121,558)

Repayment Loans (110,635) (102,588)

Interest paid (23,735) (25,338)

Dividend paid (52,542) (43,332)

Received from share issue - 9,901

Received from loans/Bonds 144,756 39,799

Others (357) -

Statements of Consolidated Cash Flows : 9M/2015

42


PTT Group Performance : 9M/2015 (YoY)

% share

9M/2014

(Restated)9M/2015 YoY

9M/2014

(Restated)9M/2015 YoY

PTT Net operating Income 37,119 19,241 -48% 37,119 19,241 -48%

E&P - PTTEP 45,905 -36,284 -179% 65.29% 30,265 -23,688 -178%

- PTTGC 20,152 15,812 -22% 48.89% 9,851 7,454 -24%

- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 4,369 2,231 -49% 40-50% 2,027 920 -55%

Petrochemical 24,521 18,043 -26% 11,878 8,374 -29%

- TOP 2,304 8,432 266% 49.10% 1,152 4,085 255%

- IRPC 544 8,955 1546% 38.51% 336 3,146 836%

- BCP 3,201 1,933 -40% 27.22% 872 553 -37%

Refining 5,782 25,702 345% 2,321 9,906 327%

Inter - PTTER, PTTGE -2,284 -4,074 -78% 100% -2,284 -4,086 -79%

Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 4,108 4,162 1% 50-100% 2,991 3,659 22%

Utilities -GPSC/ TP/ DCAP 2,069 2,653 28% 20-30% 578 752 30%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 2,144 5,850 173% 33-100% 1,617 5,590 246%

Others Business 6,037 8,591 42% 2,902 5,915 104%

Shared of Net Income from Affiliates 82,245 16,052 -80% 47,366 507 -99%

PTT Conso. Net Income 119,364 35,293 -70% 84,485 19,748 -77%

Equity Method % PTTPerformance 100%

Unit : MMTHB

43


PTT Group Performance : Q3/2015 (QoQ)

44

% share

Q2/15 Q3/15 QoQ Q2/15 Q3/15 QoQ

PTT Net operating Income 9,019 3,584 -60% 9,019 3,584 -60%

E&P - PTTEP 1,312 -46,212 -3622% 65.29% 866 -30,170 -3584%

- PTTGC 8,974 1,207 -87% 48.89% 3,973 797 -80%

- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 740 214 -71% 40-50% 301 -1 -100%

Petrochemical 9,714 1,421 -85% 4,274 796 -81%

- TOP 6,228 -2,294 -137% 49.10% 2,963 -1,095 -137%

- IRPC 4,236 887 -79% 38.51% 1,528 47 -97%

- BCP 896 - -100% 27.22% 280 - -100%

Refining 15,750 -2,016 -113% 6,342 -1,176 -119%

Inter - PTTER, PTTGE -1,681 -1,863 -11% 100% -1,721 -2,018 -17%

Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 1,618 1,471 -9% 50-100% 1,355 1,262 -7%

Utilities -GPSC/ TP/ DCAP 724 978 35% 20-30% 171 276 61%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 3,508 940 -73% 33-100% 3,440 864 -75%

Others Business 4,169 1,526 -63% 3,245 384 -88%

Shared of Net Income from Affiliates 30,945 -45,281 -246% 14,727 -30,166 -305%

PTT Conso. Net Income 39,964 -41,697 -204% 23,746 -26,582 -212%

Equity Method % PTTPerformance 100%

Unit : MMTHB

Subsidiaries ConsolidatePTT (Cambodia) Co., Ltd. PTTCL 100.00%Subic Bay Energy Co., Ltd. SBECL 100.00%PTT Retail Business Co., Ltd. PTTRB 100.00%Thai Lube Blending Co., Ltd. TLBC** 48.95%PTT Tank Terminal Co., Ltd. PTTTANK 100.00%PTT Oil Myanmar Co., Ltd. PTTOM 100.00%

Associates EquityKeloil-PTT LPG Sdn. Bhd. KPL 40.00%Thai Petroleum Pipeline Co., Ltd.THAPPLINE 40.40%PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00%

Others CostPetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00%PetroAsia (Sanshui) Co., Ltd. PA(Sanshui) 25.00%Intoplane Services Co., Ltd. IPS 16.67%Fuel Pipeline Transportation Co., Ltd.FPT 0.00024%

Others Fair ValueBangkok Aviation Fuel Services Plc. BAFS 7.06%

Others

Subsidiaries ConsolidatePTT Exploration & Production Plc. PTTEP 65.29%PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00%PTT LNG Co., Ltd. PTTLNG 100.00%Thai Oil Power Co., Ltd.* TP 26.00%Global Power Synergy Co., Ltd* GPSC 22.58%

Joint Ventures EquityTrans Thai-Malaysia (Thailand) Co., Ltd. TTM (T) 50.00%Trans Thai-Malaysia (Malaysia) Sdn. Bhd. TTM (M) 50.00%District Cooling System and Power Plant DCAP 35.00%

Petrochemical Subsidiaries ConsolidatePTT Polymer Marketing Co., Ltd. PTTPM 50.00%PTT Polymer Logistics Co., Ltd. PTTPL**50.00%PTT PMMA Co., Ltd. PTTPMMA 100.00%PTT Global Chemical Plc.* PTTGC 48.91%PTT Maintenance and Engineering* PTTME 40.00%PTT Energy Solutions Co., Ltd.* PTTES 40.00%

Joint Ventures EquityHMC Polymers Co., Ltd. HMC 41.44%PTT Asahi Chemical Co., Ltd. PTTAC 48.50%PTT MCC Biochem Co., Ltd. PTTMCC 50.00%

Refining Subsidiaries ConsolidateThai Oil Plc.* TOP 49.10%IRPC Plc.* IRPC 38.51%

Refining Associates EquityStar Petroleum Refining Co., Ltd. SPRC 36.00%

Others Fair ValueDhipaya Insurance Plc. TIP 13.33%

Subsidiaries ConsolidateEnergy Complex Co., Ltd. EnCo 50.00%Business Service Alliance Co., Ltd. BSA * 25.00%PTT Regional Treasury Center Pte. Ltd. PTTRTC 100.00%PTT ICT Solutions Co., Ltd.* PTTICT 20.00%

International Trading Business Group

Subsidiaries ConsolidatePTT International Trading Pte. PTTT 100.00%

Remark : *The companies have changed their status to subsidiaries due to impact from PACK5** Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies.

Petrochemicals & Refining Business GroupE&P and Gas Business Group Oil Business Group

Data as of 30 September 2015

International Investment

Subsidiaries ConsolidatePTT Energy Resources Co., Ltd. PTTER 100.00%PTT Green Energy Pte. Ltd PTTGE 100.00%

45

45

46

Natural Gas Price Structure : Jan-Sep 2015

CustomersSales Price Structure

Gas Pool Price Supply Margins Pipeline Tariffs+ +

Average Purchased Gas Price

1.75%

1.75%

9.33%

21.9 Bt/MMBtu

Charged at the same price structure of power producers

Reference to Saudi Aramco’s contract price

Charged at prices comparable to fuel oil

Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns.

Capped at 13.50 Baht/Kg from Sep 2015

Profit-sharing mechanism based on market prices of petrochemicals

Reference to Naphtha market price

At GSPs cost (adjusted every 3 months)

• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions

46

*

* EGAT IPP and SPP Supply Margins not more than 2.1525 and 11.4759 respectively

*

*

Power Producers 60%

: EGAT 24%

: IPP 21%

: SPP 15%

GSP 20%

Petrochemicals Feedstocks

Industry 14%

NGV 6%

Ethane, Propane, LPG

NGL

Local Cooking Gas

Export Cooking Gas

Natural Gas : Increasing natural gas in power demand over long term by replacing Coal, EE and AE

47Source : PTT

Gas demand forecast (CAGR during 2015-2030): Total ~ 1%: Power ~ 2%: GSP ~ -3%: Industry ~ 2%: NGV ~ -1%

Thailand’s Projected Energy Demand

48

Primary Energy Consumption

Source : EPPO/ PDP 2015 Preliminary ( Jan 2015) / PTT analysis as of Jan 2015

0

500

1000

1500

2000

2500

3000

3500

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

32%

40%

15%11%

Oil

Natural Gas

Coal/Lignite

Hydro/Import

KBD

Renewable

2%

2,438

2,052

31%

38%

16%

13%2%

28%

34%

20%

5%

13%

2,840

29%

36%

18%

4%

13%

3,240

Gas Business Generates Stable Returns

Sole owner and operator of entire

gas transmission pipelines in

Thailand (> 3,000 km), a regulated

business

• IRROE ranges between

12.5% - 18% for transmission

pipeline investment

Supply & marketing of natural gas

provides fixed margin with long-term

contracts of 25-30 years

6 Gas Separation Plants; Total

production 6.7 MTA; are on

petrochemical market price-linked

profit sharing basis

Overview Gas transmission pipeline capacity

Sin Phu Hom

Nam Phong

Thailand

Ban I Tong

Nakhon Sawan

NBK

Tha Luang Nakhon Ratchasima

Kaong Khoi

Samut Prakan

ESB

BPK

Khanom

Songkhla

Sadao

Chon Buri

Rayong

Wang Noi

Thai-Malaysia

(JDA)

Arthit

Erawan

N.Pailin

Bongkot

South Bongkot

Platong

Tantawan

Benchamas

Natural gas fields

Power plantsGas separation plant

1,2,3,5,6 in Rayong

Gas separation unit 4

in Nakhon Si Thammarat

Existing pipeline

Future pipeline

Andaman Sea

49

Yadana

Yetagun

Zawtika

Platong 2

S.Pailin

Ratchaburi SBK

Map Ta Phut LNG Terminal

5

10

15

Aug-13 Feb-14 Aug-14 Feb-15 Aug-1515

20

25

30

35


20

30

40

50


80

120


Energy Price Reform: Blessing in Disguise

Dubai Petroleum Products

LPG NGV

Adjusted 4 timesTotal change Private Car +3.00 THB/KgPublic Car +1.50 THB/Kg

Adjusted 4 times to be “Single price” since Dec 2014Adjusted avg. pool price to link with market price

107.11

46.70

USD/BBL

Sep-15

New Gov.

Public Car8.50 THB/Kg

Private Car10.50 THB/Kg

10.00

13.00

Auto21.38

Cooking18.13

Industry30.13

THB/Kg

Gasoline46.85

Diesel29.99

33.26

23.29

THB/Litre New Gov.

12.50

11.50

9.50

New Gov. THB/Kg

22.2924.16

Sep-15

Gasoline -13.59 THB/LiterDiesel -6.70 THB/Liter

13.50

Sep-15Sep-15

New Gov.

50

Energy Price Reform: LPG Prices

CP-20 $/ton or 423 $/ton

Lifted GSP Capped Price from 333 USD/TON to reflect GSP Cost

GSP3.6 Mil. Ton

(48%)

Imported 2.0 Mil.

Ton(27%)

Refinery1.9 Mil.

Ton(25%)

488 $/TON

or16 11 ฿/kg

CP+85 $/ton or 528 $/ton

498 $/ton

*CP Jan’15= 443 $/ton

Tax2.39 ฿/kg

Margin3.26 ฿/kg

Oil Fund0.63 ฿/kg

VAT1.57 ฿/kg

Oil FundAS

CLEARING HOUSE

Margin3.26 ฿/kg

VAT1.19 ฿/kg

Tax2.39 ฿/kg

No oil

Fund

23.96 ฿/kg

18.13 ฿/kg

Cooking

Transport

Industrial

Low income

Need subsidy

4.82 ฿/kg

LPG prices for Petchem : not controlled, but linked to market price and/or contract price

51

http://www.google.co.th/url?url=http://gas-lpg-rodyontt.blogspot.com/&rct=j&frm=1&q=&esrc=s&sa=U&ei=58tcVPDKG8S8uATasYDQCg&ved=0CBcQ9QEwATgU&usg=AFQjCNGqWS3Kbm5yvRnOK4iTmVWnNiXGlg

http://www.google.co.th/url?url=http://gas-lpg-rodyontt.blogspot.com/&rct=j&frm=1&q=&esrc=s&sa=U&ei=58tcVPDKG8S8uATasYDQCg&ved=0CBcQ9QEwATgU&usg=AFQjCNGqWS3Kbm5yvRnOK4iTmVWnNiXGlg

pride & treasure of thailand - listed...

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