ptg energy plc 2q18 performance and...
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2Q18 Performance and Outlook21 August 2018
PTG Energy PLC
Source: Department of Energy Business and Company Data
* Including Benzene 91-95, Gasohol 91, Gasohol 95, Gasohol E20, Gasohol E85 and Diesel
2
Continuous growth in retail market share
38.00%
39.00%
40.00%
41.00%
42.00%
43.00%
44.00%
7%8% 8%
8% 9%9% 9%
10%10%
11% 11%11%
12%13%
12%13%
14% 14%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018
Agenda
Highlights
Industry Outlook
Business Overview and Developments
Financial Performance
3
2Q18 Highlights
Strong growth in sales volume
Continual expand in GP
portion from Non-oil business
Further retail market
share gains
13% YoY 14%
10%from 6% last year
First Punthai drive-thru
Vibhavadi full-service branch
Launched modern style
sites
4
Industry Outlook
Industry OutlookTha i land o i l consumpt ion g rew a t a s lower pace
Total Thailand consumption Retail consumption
Unit: Million Liter
-2.2% QoQ
+1.6% YoY+1.1% QoQ
+2.3% YoYUnit: Million Liter
Source: Department of Energy Business
Total Thailand oil consumption in 2Q18 increased
1.6% YoY
The consumption in this quarter is lower compare to
1Q18
The oil consumption through station increased 2.3%
YoY in 2Q18
The slower growth in oil consumption is a result of
slow recovery in grassroots economy6
7,5
91
7,6
87
7,4
03
7,9
25
8,2
13
8,2
05
7,8
09
8,1
36
8,3
37
8,3
85
8,1
09
8,3
77
8,7
07
8,5
17
0%
2%
4%
6%
8%
10%
-
2,000
4,000
6,000
8,000
10,000
Diesel Consumption Mogas Consumption
Total Consumption Consumption Growth
5,2
35
5,4
28
5,1
83
5,6
54
5,9
09
5,9
22
5,7
04
5,9
67
6,0
21
6,1
27
5,9
84
6,1
92
6,2
00
6,2
68
0%
2%
4%
6%
8%
10%
12%
14%
0
2000
4000
6000
8000
Diesel Consumption Mogas Consumption
Retail Conumption Consumption Growth
Industry OutlookDiesel consumption in retail channel was driven solely by Bangkok and vicinity areas
1.5%of total growth
1.5%of total growth
The region has the highest growth in diesel consumption of 9%
YoY in 2Q18 and 6M18
Thailand diesel retail consumption grows 3% YoY
Retail diesel consumption in Bangkok and vicinity areas
contributed growth of 1.5% of the total growth 3%
Other 73 provinces contributed growth of only 1.5%Source: Department of Energy Business
Bangkok
& Vicinity
7
-5%
-2%
1%
4%
7%
10%
13%
2Q17 2Q18 6M17 6M18
BKK and Vicinities Central East North East North West South
% Change YoYRetail consumption growth
Industry OutlookNumber o f s ta t ion by b rand and reg ion
8
28%
33%
25%
31%
33%
34%
32%
11%
24%
31%
34%
23%
32%
26%
18%
21%
21%
20%
15%
13%
11%
17%
8%
9%
4%
8%
9%
8%
14%
6%
6%
4%
10%
7%
11%
6%
6%
5%
5%
8%
4%
6%
6%
2%
4%
2%
2%
2%
5%
-100 100 300 500 700 900 1100 1300 1500 1700
Source: Department of Energy Business
Data as of 1Q2018
Industry OutlookSlow provincial economic growth effected retail oil consumption
Strong farm production, but weak farm income Agricultural Price Index
120
125
130
135
140
145
150
155
160
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2015 2016 2017 2018
-20.00%
-10.00%
0.00%
10.00%
20.00%
Argricultural Production
Agricultural price index is lowest in the past four
years
Source: Office of Agricultural Economics
The farm income started to pick up but mainly from
the increase in agricultural production
%YoY
9
Business Overview and Developments
92% 94% 94%
92%94%
881 942 985
1,702
1,927
2Q17 1Q18 2Q18 6M17 6M18
Retail Wholesale
Unit: Million Liter
Retail portion continuously increased by +16%
YoY due to PTG strategy in focusing on retail
channel
+5% QoQ
+12% YoY
11
+14% QoQ
-15% YoY
+4% QoQ
+14% YoY
+16% YoY
-17% YoY
+13% YoY
Business Overview and DevelopmentsPet ro l sa le vo lume
Sales volume Same store sales
Unit: ML/Station/Month
0.212 0.212
0.100
0.150
0.200
0.250
6M17 6M18
+0% YoY
6M18 same store sales is similar to 6M17
Slow growth was due to the slow recovery in
provincial consumption, but high growth in major
city areas
Source: Department of Energy Business and Company Data
* Including Benzene 91-95, Gasohol 91, Gasohol 95, Gasohol E20, and Diesel
12
Total consumption
8,385 ML
Business Overview and DevelopmentsSt rong ga in in a l l channe l & re ta i l marke t share
37.36%
13.68%12.67%
11.58%
11.47%
7.52%4.35%
1.37%
2Q1837.20%
13.77%12.52%
11.89%
10.49%
7.31%5.42%
1.41%
2Q17
Total consumption
8,517 ML
All channel market share Retail market share
41.05%
15.01%12.80%
12.48%
12.12%
4.46%
1.72%
2Q17
40.75%
15.23%14.04%
12.12%
11.96%
4.23%
1.60%
2Q18
Total consumption
6,127 ML
Total consumption
6,268 ML
1803
1
11
6
1
123
240
40
1
SERVICE STATION
KRUA PHAN JIT
PRO TRUCK
AUTOBACS
RENEWABLE ENERGY
PUNTHAI / COFFEE WORLD
MAX MART
MAX CAMP
LUBE CHANGE
Business Networks
13
15 1923
29
42
2Q17 1Q18 2Q18 6M17 6M18
PTG’s LPG sales volume in 2Q18 increased 52%
YoY while Thailand’s LPG auto consumption
dropped 12% YoY
100% LPG sales volume was from retail channel
14
Business Overview and DevelopmentsLPG sa les vo lume
Unit: Million Liter
+19% QoQ
+52% YoY
6M18 same store sales is 0.093 ML increased
from 6M17 by 4%
Our effective loyalty program through PT Max
Card led the SSS to continuously rise
Unit: ML/Station/Month
0.0900.093
6M17 6M18
+4% YoY+47% YoY
Sales volume Same store sales
15
Business Overview and DevelopmentsLPG retail market share
Source: Department of Energy Business and Company Data
Total consumption
607 ML Total consumption
527 ML
19.76%
17.97%
16.90%10.35%
4.37%
30.66%
2Q18
28.19%
18.18%
15.65%
9.33%
2.50%
26.16%
2Q17
First Punthai Drive Thru Now Open At PT Service Station (Bangkapi 3rd
Branch)
Target To Open 3 More Locations
Within 2018
First
Punthai Coffee
Drive Thru
16
PT
Stat ion
Viphavadee
Branch
is
Now
Opened
NOW OPEN!!
10
Krua
Phan
Jit
New
Branch
Financial Performance
Unit: Baht Million
B Revenue by Business
Oil
97%
Non-oil*
3%
2Q18
A Total Revenue
Revenue in 2Q18 increased 26% YoY from
rising in sales volume and oil retail price
Non-oil proportion was 3%, slightly higher than
last year at 2%
* Non-oil includes LPG, Logistics, Max Mart, Punthai Coffee, Coffee World, Lubricant, rental income, and others
21,457 24,752 27,089
42,353
51,842
2Q17 1Q18 2Q18 6M17 6M18
+9% QoQ
+26% YoY
Financial PerformanceRevenue
+22% YoY
20
F i n a n c i a l P e r f o r m a n c eG r o s s p r o f i t
Oil90%
Non-oil*10%
23
B
2Q18
A Gross Profit
Gross Profit from Non-oil
businesses portion increased to
10% from 6% in 2Q17.
Gross profit in 2Q18 was affected from the oil volatility resulted in
the unequal adjustment between retail price and its cost.
Higher growth in 6M18 was from higher oil and non-oil margin.
* Non-oil includes LPG, Logistics, Max Mart, Punthai Coffee, Coffee World, Lubricant, Rental income, and others
Gross Profit by Business
Unit: Baht Million
21
1,598 1,903 1,818
2,985 3,722
2Q17 1Q18 2Q18 6M17 6M18
-4% QoQ
+14% YoY
+25% YoY
Financial PerformanceNon-o i l g ross p ro f i t por t ion
90%
4%3%
3%
Oil F&B LPG CVS and Others
The portion of non-oil gross profit
accounted for 10% of total gross profit
F&B, LPG, and CVS and others
contributed 4%, 3%, and 3% of total
gross profit respectively
PTG targeted to reach 60% gross
profit proportion in 2022
2Q18
22
Financial PerformanceEBITDA and Net p ro f i t
23
A EBITDA
The drop in 2Q18 marketing margin mainly
reflected in a decline in net profit.
The margin in non-oil businesses started to
contribute to the overall portfolio and it is
projected to increase overall GPM in the future
Soften marketing margin in 2Q18 affected the
EBITDA growth
Higher depreciation and amortization was due to
the business expansion
* Non-oil includes LPG, Logistics, Max Mart, Punthai Coffee, Coffee World, Lubricant, Rental income, and others
Net Profit
23
786 948 885
1,437 1,834
2Q17 1Q18 2Q18 6M17 6M18
264 269 177
446 447
2Q17 1Q18 2Q18 6M17 6M18
-7% QoQ
+13% YoY
+28% YoY
-34% QoQ
-33% YoY
+0.2% YoY
B
Unit: Baht MillionUnit: Baht Million
Cash FlowFinancial PerformanceCash f low
Continued investment in oil
and non-oil businesses to
increase its coverage,
focusing more on Bangkok,
vicinity areas and major
cities.
Unit: Baht Million
24
Unit: Days
Profitability Ratio Operating Cash CycleBA
Cash generating business!
The slightly decrease in cash cycle was from
supply chain management
7.28 7.86 6.58
0.44 0.59 0.74
14.53 16.05 12.57
(6.80) (7.60)(5.25)
2016 2017 2Q18
Day in Inventory Avg. Collection Period Avg. Payment Period Cash Cycle
8.1% 7.4% 6.7%4.3% 3.6% 3.3%
1.7% 1.1% 1.1%
10.6%6.0% 4.3%
25.0%18.8%
14.2%
-30.0%
-10.0%
10.0%
30.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2016 2017 2Q18GPM EBITDA Margin NPM ROA ROE
The decline in the profitability ratios was from the
lower marketing margin
However, PTG is gearing up toward non-oil
business to stabilize the margin volatility
Financial PerformanceKey ra t ios
25
Financial PerformanceKey ra t ios
Assets Liabilities & EquityBA
1,525 1,989 1,767
2,3342,501 2,541
5,800
8,865 10,045 1,404
2,3112,577
12,527
17,98519,324
2016 2017 2Q18
Others Prepaid Leasehold Right & Rental
PP&E Investment
Inventories Cash and Cash Equivalents
4,589 5,119 5,301
8062,120
3,416 3,654
4,5204,073 3,203
5,9806,241
12,527
17,98519,324
2016 2017 2Q18
Equity S-T Borrowing
Trade and Other Payables L-T Borrowing
Other Liabilities
Unit: Baht Million
Leverage Ratios
0.87
1.58
1.82
2016 2017 2Q18
Interest Bearing Debt
C
Unit: Baht Million
The rise of total assets is mainly from the increase of investment properties,
PP&E, and pre-paid of rental & leasehold right due to the expansion of oil
business, and non-oil businesses focusing on Bangkok and vicinity areas, and
major cities
IBD ratio slightly increased from long-
term loans to accommodate the
business expansion
26
Disclaimers
27
Some information, shown in the presentation, was obtained from publicly sources which have
not been independently justified. They are used only for industry outlook and forward trends.
The forward looking in this presentation has been prepared with the basis of the assumption
numbers which might be proved to be incorrect. This presentation should not be solely relied
upon as a recommendation or forecast by PTG Energy PLC.
