ptt oil and retail business public company limited
TRANSCRIPT
18 May 2021
Analyst Meeting Q1/21
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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Key Highlights
Financial Summary
Key Factors
Outlook and Guidance
AGENDA
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Investment Updates
EV Station Quick Charge
• Launched additional 5 EV Quick Charge with 50 kW of power per post
• There are 25 EV Stations in the form of Normal Charge.
OHKAJHU
• Invested 20% stake in Pluk Phak Praw Rak Mae company limited to cope with the changing customers’ lifestyle and support SMEs and organic vegetable farmers.
LINE MAN Kitchen
• Collaborated with Lineman and Wongnai; launched cloud kitchen “ Line man kitchen” using ptt station as a platform to provide consumers with access to more products and services
G-Box project
• Signed an MOU with GPSC to pilot the G-Box project—a Battery Energy Storage System to enhance energy management efficiency for EV Station and strengthen the stability of electricity usage
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COVID-19 Measures
• Supported dealers affected by the COVID-19 outbreaks throughpromotions aimed at attracting customers and increasing traffic.
Partners
• Encouraged the use of QR code payment by providing 5 THB cashback for every 100 THB oilrefuel at ptt station during 15 Feb – 15 Mar 21
• Handed out 50 ml. alcohol gel for every 500 THB oil refuel at ptt station in Bangkok Metropolitan area.
• Handed out face mask for every refuel at pttstations.
Customers
• Implemented WFH policy and BCM plan
• Provided prevention measures at all business touchpoints
Employees
• Prepared ptt station at Rama 2 as a place to provide out-of-hospital vaccination service
• Contributed over THB 35 million to affected communities, such as the Klong Toey community and field-hospitals
• Collaborated with dealers to donate THB 23 million to hospitals and public health agencies in 77 provinces
Community
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Key Highlights Q1/21
# Retail fuel service stations inside and outside of Thailand
2,346 Stations
Oil volume sold in Thailand
5,910 mml
Net Income
THB4.0Bn
EBITDA
THB6.4Bn
Sales Revenue
THB118.5Bn
Oil Business80.6%
Non-oil Business 16.6%
International Business
3.2%
Other Business
-0.4%
EBITDA
Breakdown(1)
42.1%Market Share
(2)
____________________Notes:(1) Before eliminations(2) Total products excluding the amount of fuel oil sold to the Electricity Generating Authority of Thailand
Source: Department of Energy Business, Ministry of energy
International Presence
10 Countries
# Café Amazon stores inside and outside of Thailand
3,651 Outlets
Cups sold by Café Amazon inside and outside of Thailand
78 mm
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Key Highlights
Financial Summary
Key Factors
Outlook and Guidance
AGENDA
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Thailand GDPUSD/BBL
2.8 2.4 2.71.3
-2.1
-12.1
-6.3
-4.2
-2.6
Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21
2.32019
-6.12020
Source: www.nesdc.go.th
Dubai
Key Factors
COVID-19Foreign Exchange Rate THB/USD
Q3/20 Q4/20 Q1/21Q4/19 Q1/20 Q2/20
3,000
2,000
1,000
0
Q4/20Q3/20Q2/20
• New wave of COVID-19 outbreak• Implementation of control measures in risky areas• Delay of vaccines and speed of inoculation
Source: JHU CSSE COVID-19 Data
Q1/21
New Infected person Average in 7 days
31 Jan 21New infected persons: 836Avg. in 7 days: 874
Person
6454
3420
3041 43 44 41 41 43
5055
61 64
Q1/20 Q2/20 Q3/20 Q4/20 Q1/21
Avg. 50.7 Avg. 30.6 Avg. 42.9 Avg. 44.6 Avg. 60.0
2020Avg. = 42.2
Stock loss(3,014)
Stock Gain+3,613
Stock gain +2,539
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118Bn
10.1Bn
6.4Bn
4.0Bn
Key Highlights
Gross Profit
EBITDA
Net Profit
Revenue
118.5Bn
10.1Bn
6.4Bn
4.0Bn
-9.1%
+34.0%
+68.9%
+>100%
+8.2%
+10.4%
+25.8%
+36.9%
Volumes sold (Aviation fuel)Demand in Convenience store
Oil margin/liter (0.78 to 1.31)Retail volumes sold
EBITDA
Avg. oil selling prices
Oil margin/liter (1.04 to 1.31)
Demand in F&B, Convenience storesOil sales volume (-6%)
Q1/20 VS Q1/21 Q4/20 VS Q1/21
Sales from F&B, Convenience stores
Gross margin
SG&A (-10%, Advertising & Promotion exp.)
EBITDAGain on exchange rate
Loss from derivatives
F&B outlet expansion
Commercial volumes soldSales from non-oil
Gross marginSG&A (-9%, Rental expenses)
Loss from derivatives
Gain on exchange rate
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Key Highlights
Financial Summary
Key Factors
Outlook and Guidance
AGENDA
11
130,305
109,496 118,460
Q1/20 Q4/20 Q1/21
THB MM
1,896
2,923
4,002
Q1/20 Q4/20 Q1/21
THB MM
3,796
5,096
6,410
Q1/20 Q4/20 Q1/21
Financial Summary
QoQ & YoY: Improved oil margin & lower OPEX, despite weaker oil sales volume & softer non-oil marginfrom new COVID-19 outbreak
1.5% 2.7% 3.4%
Net Profit Margin(1)
Total Revenue EBITDA Net Profit
THB MM
2.9% 4.7% 5.4%
EBITDA MARGIN(1)
(9.1)% YoY
+8.2% QoQ
+68.9% YoY
+25.8% QoQ
+>100% YoY
+36.9%QoQ
____________________Notes:(1) Calculated from sales and services income
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Financial Performance Summary QoQ
Gross Profit
Other Income & Operating Exp.
Depreciation & Amortization
Others
Loss on derivatives
Financial Cost
Income Tax
NI Increases 1,079 (+36.9%)
NI Q4/20 NI Q1/21
THB MM
Others (>+100%)
Gain on exchange rate
Loss on derivatives (<-100%)
Commodity & forward contract
Financial Cost & Income Tax (+48.8%)
Operating profit
Gross Profit (+10.4%)
Oil margin/liter (1.04 to 1.31)
Oil volumes sold—Gasoline and Diesel
Other Income & Operating Expenses (-8.9%)
Advertising & sales promotionRepair & maintenance
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Oil Business Key Highlights
MM LitersMM Liters
14.7%5.6% 4.7%
42.7%
46.6% 47.1%
5.4%
5.4% 6.3%
21.9%25.7% 24.7%
1.0% 1.5% 1.7%
Q1/20 Q4/20 Q1/21
Lube Aviation Fuel Diesel
Fuel Oil Gasoline Others
_________________Notes:(1) Thailand and Myanmar(2) Before eliminations
2,993 3,367 3,121
3,630 2,915 2,789
6,623 6,282
5,910
Q1/20 Q4/20 Q1/21
Retail Commercial
(10.8)% YoY
(5.9)% QoQ
Volume by Market(2) Volume by Product Types
Sales volume dipped due to the new COVID-19 outbreak
Outlets
Number of Service Stations(1)
1,627 1,636
372 374
2020 Q1/21
DODO Outlets COCO Outlets
+ 11 Stations
1,999 2,010
121,462
101,285 109,948
Q1/20 Q4/20 Q1/21
2,455
3,537
5,170
Q1/20 Q4/20 Q1/21
5,188
6,554
7,723
Q1/20 Q4/20 Q1/21
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THB MM THB MM
Oil Business
2.0% 3.5% 4.7%
EBITDA Margin(2)
Revenue(1) Gross Profit(1) EBITDA(1)
THB MM
0.78 1.04 1.31
GP per liter (THB/liter)
(9.5)% YoY
+8.6% QoQ
+>100% YoY
+46.2% QoQ
+48.9% YoY
+17.8%QoQ
QoQ: Strong EBITDA from higher gross profit margin per literYoY: Robust EBITDA undeterred by lower sales volume
Average Dubai Crude Oil Price for the Period (US$/barrel)
____________________Notes:(1) Before eliminations(2) Calculated from Sales and services income
50.7 44.6 60.0
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Non-Oil Business Key Highlights
OutletsMillion cupsOutlets
Café Amazon Outlets(1) Other F&B Convenience Store(2)
____________________Notes:(1) Includes outlets in Myanmar, Malaysia, Japan and Oman(2) CVS includes Jiffy in Laos
Outlets
Café Amazon Cups Sold
2,612 2,664
678 693
20 19
3,310 3,376
2020 Q1/21
Franchise CoCo Others(1)
68
74
73
Q1/20 Q4/20 Q1/21
+ 66 outlets +7.2 % YoY
-1.5% QoQ
78 79
70 66
169 169
317 314
2020 Q1/21
Pearly Tea
Hua Seng Hong Dim Sum
Texas Chicken
1,977 1,995
29 29
2,006 2,024
2020 Q1/21
Thailand Laos
- 3 outlets + 18 outlets
4,273
4,618
4,086
2,498 2,936 2,706
1,775
1,682
1,380
Q1/20 Q4/20 Q1/21
Food and beverage Other non-oil
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THB MM
Non-Oil Business
Revenue(1)EBITDA(1)
THB MM
26.7% 29.3% 26.0%
EBITDA MARGIN(2)
(4.4)% YoY
(11.5)% QoQ
(6.9)% YoY
(21.5)% QoQ
QoQ & YoY : Retreated revenue and EBITDA from the new COVID-19 outbreak
____________________Notes(1) Before eliminations(2) Calculated from Sales and services income
1,143
1,355
1,064
677 897
711
466
458
353
-
200
400
600
800
1,000
1,200
1,400
1,600
Q1/20 Q4/20 Q1/21
Food and beverage Other non-oil
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International Business Key Highlights
MM LitersStations/Outlets
Network of Stations and Non-Oil Outlets Petroleum Product Sales Volume(2)
QoQ: Diesel and Aviation fuel sales volume grew, (mainly the Philippines)YoY: Aviation fuel sales volume declined (Cambodia & the Philippines); while Diesel rose (the Philippines)
____________________Notes(1) Include outlets in China, Singapore and Vietnam(2) Before elimination(3) Include Laos, China, and Singapore
183 115
176
114
99
99
60
65
69
Q1/20 Q4/20 Q1/21
Philippines Cambodia Others(3)
(3.8)% YoY
+23.2%QoQ
181 181
106 107
48 48
335 336
2020 Q1/21
18 18
167 174
70 72
10 11
265 275
2020 Q1/21
66 68
2020 Q1/21
Fuel Station Café Amazon Convenience Store
+10 outlets
+2 outlets
+1 station
Philippines Cambodia
Laos Others(1)
Philippines Cambodia
Lao
Cambodia
357
279
344
(4)
65
98
187 63
120
22
4
(11)Q1/20 Q4/20 Q1/21
6,811
4,976
6,456
Q1/20 Q4/20 Q1/21
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THB MM
Revenue (1) EBITDA(1)
THB MM
3.0% 2.7% 3.2%
EBITDA MARGIN(3)
(5.2)% YoY
+29.7% QoQ
+2.0% YoY
+58.0% QoQ
QoQ : Elevated EBITDA from higher margin and lower SG&A (Cambodia & the Philippines)
YoY : Improved EBITDA from increased diesel sales volume, and higher margin from ULG & aviation fuel (the Philippines)
____________________Notes(1) Before elimination(2) Include Laos, China, and Singapore(3) Calculated from Sales and services income
Philippines Cambodia Others(/)
205
132
207
International Business
5.6
8.7
37,916
95,75417,274
17,548
30,120
34,415
59,669
56,790
31 Dec 20 31 Mar 21
Totalborrowings
Other Currentliabilities
Other Non-currentliabilities
Equity
76,385 78,444
49,59053,923
19,004
72,140
31 Dec 20 31 Mar 21
Cash equivalents& ST investment
Other currentassets
Non-currentassets
Financial ratioFinancial Position
1919
Financial Position
Total Assets Total Liabilities & Equity
144,979 144,979
204,507204,507
Times
Covenant ≤ 2.5
Internal Policy ≤ 2.0 Covenant ≥ 1.2
THB MM
Net Interest Bearing Debt / Equity
Net Interest Bearing Debt / EBITDA
Debt service coverage ratio
1.1
-0.2
2.3
-0.8
31 Dec 20 31 Mar 21
31 Dec 20 31 Mar 21
31 Dec 20 31 Mar 21
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Key Highlights
Financial Summary
Key Factors
Outlook and Guidance
AGENDA
Dubai $63.6 $42.2 $60.0
2019A 2020A 2021F 2022F
World 2.8IMF
-3.3IMF
6.0IMF
4.4IMF
Thailand 2.3IMF
-6.1 IMF
2.6IMF
5.6IMF
China 6.0NBS
2.3IMF
8.4IMF
5.6IMF
Cambodia 7.0IMF
-3.5 IMF
4.2IMF
6.0IMF
Lao PDR 4.7IMF
-0.4 IMF
4.6IMF
5.6IMF
Myanmar 6.8IMF
3.2IMF
-8.9IMF
1.4IMF
Vietnam 7.0IMF
2.9IMF
6.5IMF
7.2IMF
Philippines 5.9PSA
-9.5 IMF
6.9IMF
6.5IMF
Outlook 2021
21
Supportive Factors
Challenges and risks
Speed of vaccination to achieve herd immunity
High dependence uponinternational tourists that remains a major constraint to economic recovery
Faster-than-expected recovery of the export sector
Continued support measures from the government
2019 2020 2021 (1)Oil Price (US dollars per barrel)
____________________Sources:IMF = International Monetary FundNBS = National Bureau of Statistics of China/ GSO = General Statistics Office of Vietnam/ PSA = The Philippine Statistics Authority/ MTI = The Ministry of Trade and Industry, Singapore(1) Bank of Thailand(2) JHU CSSE COVID-19 Data
COVID-19 Updates (2)
Lasting rapid spread of the new wave of COVID-19 outbreak
GDP Growth
Scenario 1Speed of Vaccination
100 million doses in 2021
Scenario 2Vaccination as plan
64.6 million doses in 2021
Scenario 3Delay in Vaccination
Less than 64.6 million doses in 2021
2021 2022 2021 2022 2021 2022
2.0 4.7 1.5 2.8 1.0 1.1
Thailand GDP Growth(1)
The number of daily infections continues to surge over 2,000 cases.
Target of 100 million doses to vaccinate 50 million people by the end of 2021. New Infected person Average in 7 days
16 May 21New infected persons: 2,302Avg. in 7 days: 2,582
Jun20 Aug20 Feb21 Apr21Nov20
22
Business Guidance 2021
Key Expansion Plans
110 new
service stations
Replace terminals Expand 10
new outletsOil
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
Café AmazonCentral Bakery, Mixed Beverage Powder Plant and DC
: target to operate in 3Q/21
Brighter Energy Company Limited (BE) in Myanmar project progress: Petroleum Terminal → 62% completion
: Jetty construction → 78% completion
Expand to 100 EV charging stations
To enhance technological and innovative
capabilities as well as competitiveness and
increase value through digital business
development. Its business and future growth
will rely on the strengths of OR’s customers such
as Blue Card members, ptt station’s customers
and Café Amazon’s customers nationwide.
“ORBIT Digital”
Enhance Portfolio Performance & Business Opportunities via M&As/ JVs
40% 60%