Analyst Meeting 2Q/12 Operating...

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Analyst Meeting Presentation2Q/12 Operating Results

August 16, 2012PTT Auditorium, Bangkok

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DisclaimerThis presentation includes forward‐looking statements that are subject to risks anduncertainties, including those pertaining to the anticipated benefits to be realized from theproposals described herein. This presentation contains a number of forward‐lookingstatements including, in particular, statements about future events, future financialperformance, plans, strategies, expectations, prospects, competitive environment, regulationand supply and demand.

PTTGC has based these forward‐looking statements on its views with respect to future eventsand financial performance. Actual financial performance of the entities described herein coulddiffer materially from that projected in the forward‐looking statements due to the inherentuncertainty of estimates, forecasts and projections, and financial performance may be betteror worse than anticipated. Given these uncertainties, readers should not put undue reliance onany forward‐looking statements.

Forward‐looking statements represent estimates and assumptions only as of the date that theywere made. The information contained in this presentation is subject to change without noticeand PTTGC does not undertake any duty to update the forward‐looking statements, and theestimates and assumptions associated with them, except to the extent required by applicablelaws and regulations.

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Highlights Market Outlook 2Q/12 Financial Results Conclusion Appendices

Agenda

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Global economic recovery was still at risk, and Eurozone economies remained in a “precarious” situation.

Growth in emerging economies slowed down amid key concerns over global economic recession

Crude oil prices tumbled, governed more by sentiment rather than fundamentals i.e. ease of concern over supply shortage in oil‐producing countries, uncertainty in Euro debt crisis

Petrochemical demand softened amid weak demand among end users, while supply was reduced from scheduled maintenance and production slowdown

THB currency remained volatile against USD due to the uncertainty of global economic outlook

Business EnvironmentHighlights

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Key DevelopmentsMay 2012

• Mr. Anon Sirisaengtaksin joined as the new CEO in May 1, 2012• Closing of Vencorex Holding acquisitions on May 31, 2012

• PTTGC acquired 51% of the shares in Perstorp Holding France SAS in the amount of Euro 121 million • Renamed the purchased entity from Perstorp Holding France SAS to VENCOREX Holding

• Closing of NatureWorks acquisitions on May 31, 2012• PTTGC acquired 50% of the shares in NatureWorks in the amount of USD 150 million

• Signed Head of Agreement with Petronas and Itochu under Petronas Rapid Project for the feasibility study to expand downstream product portfolio – the study targets to complete by June 2013

• Map Ta Phut Case: TOCGC’s Expansion• The Supreme Administrative Court, on June 28, 2012, passed a judgment which released TOCGC’s

expansion project from suspension list. An environmental impact assessment report for this project has been submitted to the authority and PTTGC is currently seeking IEAT approval

June 2012

• Kick off 1 SAP Project • The Company has been smoothly running 3 SAP since the amalgamation and currently in the process

of achieving 1 SAP project which targets to finish by 2014• Integration Management Office (IMO) has completed the overall integration process

July 2012

Highlights

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Strategic Moves

To prepare for unfavorable circumstances arisen from Euro debt crisis• Adopted a stress test program among PTT group to establish a mitigation plan • Company’s austerity program ‐ cut 5‐10% OPEX in preparation of unexpected circumstances• Liquidity program : S‐T working cap of THB 30,085 million and L‐T committed THB 46,552 million

To be benchmarked in the 1st quartile of Philip Townsend and Solamon Energy Corporation for the 4 aspects of operational excellence within 2020

• Efficiency• Reliability• Safety• Cash Cost

To complete one single business process and information platform by 2014• One SAP and IPACK (Financial consolidation information package)• Single and streamlined business process

To study together with McKinsey&Co on firms competitiveness Investment under study > 80 projects, of which 40 projects under screening process and

approximately 30 projects under feasibility study

Leadership Focus• Align newly amalgamated entities to grow in the same integrated direction• Establish strong fundamentals to support future investment

Highlights

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2Q/12(MB)

YoY%

QoQ%

Sales Revenue 139,241 5% 4%

EBITDA 6,705 57% 54%

Adjusted EBITDA* 12,892 10% 15%

Net Profit 851 90% 91%

Ending Dubai Crude (USD/BBL) 93 13% 23%

2Q/12 performance driven by volume while market was weak

Business Operation HighlightsHighlights

* Adjusted EBITDA = EBITDA excluding Stock Gain/(Loss) and NRV

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2Q/12%

2Q/11%

1Q/12%

Refinery 3% 4% 2%

Aromatics 5% 2% 5%

Olefins and Derivatives 27% 29% 26%

PTTGC Adjusted EBITDA Margin 9% 11% 8%

Adjusted EBITDA MarginHighlights

Improving Margins QoQ but down YoY

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Feedstock Pricing Formula Adjustment 2012 Gas Price adjustment rationale Structural Change of Gas from Higher E&P Cost, and, Higher long term crude projection

Current gas feedstock pricing with linear relationship (aX + b) no longer reflects equal IRR

Assumptions Assumptions: Crude price assumption range of 70‐130 USD/BBL Investment cost, production cost and sales expenses based on global standard (Foster Wheeler and CMAI) Accounted for future increase in E&P cost from the existing sources. Accounted for changes in product price movement

Principle of the profit sharing basis preserved

Results from the Adjustment Increased PTTGC’s current gas cost by 40 USD/ton or 8%, effective August 1, 2012

Extend contract terms expiring year 2016 to be expired year 2020, other contracts expiring after 2020 remain the same

PTTGC remains PTT’s Petrochemical Flagship, reflected in downstream derivative expansion support including asset injections and gas supply commitment for Debottleneck project

Highlights

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USD/Barrel 2011 2012 2013 2014 2015 2016Dubai Crude 106 117 116 113 116 121Gasoline‐Dubai 13 12 10 10 10 10Jet‐Dubai 19 17 16 16 17 18Diesel‐Dubai 18 16 14 14 15 15Fuel Oil‐Dubai ‐5 ‐4 ‐5 ‐5 ‐5 ‐5

USD/BBL USD/BBL

Source: PIRA, May 2012

13 12 10 10 10 10

19 17 16 16 17 1818 16 14 14 15 15

-5 -4 -5 -5 -5 -5

106117 116 113 116 121

120129 126 123 126

131126134 132 128 132

138

125133 130 126 130

136

101113 111 107 111 116

-10

0

10

20

30

40

50

60

70

80

-20

0

20

40

60

80

100

120

140

160

2011 2012 2013 2014 2015 2016Gasoline 95-Dubai Jet-Dubai Diesel-Dubai Fuel Oil-Dubai Dubai Crude

Gasoline 95 Jet Diesel Fuel Oil

Market OutlookDubai Crude Oil prices pressured by economic slowdown but minimized by ME politics

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0100020003000400050006000700080009000

2012 2013 2014 2015 2016

America Europe Middle East China Other Asia Additional demand

Unit : KMT

Saudi Polymers Saudi1,200 KMTQ3‐11 to Q3‐12

Ilam Iran458 KMTQ1‐12 to Q1‐15SINOPEC Wuhan CH

800 KMTQ1‐11 to Feb‐13

ExxonMobil SG1,000 KMTQ3‐11 to Q1‐13

Shanghai PC China600 KMTQ3‐12 to Q1‐14

Daqing PC China600 KMTQ1‐11 to Q3‐12

Kavyan PC Iran1,000 KMTQ1‐13 to Q1‐14

Fushun PC China800 KMTQ1‐10 to Q3‐12

Sichuan PC China1,000 KMTQ3‐11 to Q1‐13

Ilam Iran458 KMTQ1‐12 to Q1‐15

230 291194 212261

391 451 410

1,021893

818 809

1,2511,184

1,015 1,015

1,281 1,284 1,263 1,227

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/12 2Q/12 3Q/12 4Q/12

OlefinsPrices to decline but eased by shutdowns and seasonal demand

USD/Ton Short‐term Price Forecast

Source: CMAI July 2012

Short‐Term• Olefins prices expected to decline in 3Q/12 due to lower crude oil prices and additional supplies in China and Middle East amid the uncertain global economic and energy outlook.

• However the market will be eased by

1) scheduled maintenance of crackers of which estimated 10‐15% of total Asia ethylene capacity will be lost and,

2) improve demand due to peak manufacturing season towards end 3Q/12

Short‐Term• Olefins prices expected to decline in 3Q/12 due to lower crude oil prices and additional supplies in China and Middle East amid the uncertain global economic and energy outlook.

• However the market will be eased by

1) scheduled maintenance of crackers of which estimated 10‐15% of total Asia ethylene capacity will be lost and,

2) improve demand due to peak manufacturing season towards end 3Q/12

Market Outlook

Additional (2012‐2016) (Unit : MMT)

Supply Demand26.86 30.41

Long‐term Supply/Demand

12

‐5000

50010001500200025003000

2012 2013 2014 2015 2016America Europe Middle East China Other Asia Additional demand

375494 487 486

297

464 435 441370

469 413 420

1,021893

818 809

1,395 1,3871,305 1,295

1,318 1,3571,253 1,250

1,391 1,3621,232 1,228

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/12 2Q/12 3Q/12 4Q/12

Short‐term Price ForecastUSD/Ton

Short‐Term• Strong buying resistance from end‐use producers due to squeezed margins and debt‐crisis in Eurozone will weigh on PE demand.

• PE supply from Asia and Middle East will be less due to schedule maintenance and high manufacturing season since end 3Q/12

Short‐Term• Strong buying resistance from end‐use producers due to squeezed margins and debt‐crisis in Eurozone will weigh on PE demand.

• PE supply from Asia and Middle East will be less due to schedule maintenance and high manufacturing season since end 3Q/12

Polyethylene Short term weak demand, expected improving margin in long‐term

Market Outlook


Unit : KMT

Saudi Polymers Saudi.1,100 KMTQ3‐11 to end Q3‐12

ExxonMobil Singapore325 KMTQ3‐11 to canceled OPAL India

350 KMTQ1‐13 to Q1‐14SINOPEC Wuhan China

300 KMTQ1‐11 to Feb‐13


Fushun PC China575 KMTQ2‐12 to Q3‐12



HDPE Long‐term Supply/Demand

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LLDPE & LDPE New Capacities and Closures

LDPE Long‐term Supply/Demand

LLDPE Long‐term Supply/Demand

0200400600800100012001400

2012 2013 2014 2015 2016America Europe Middle East China Other Asia Additional demand





SINOPEC Wuhan China300 KMTQ1‐11 to Feb‐13

Shanghai PC China125 KMTQ3‐12 to Q1‐14

ExxonMobil SG 975 KMTQ1‐11 to Q4‐12


Sichuan PC China300 KMTQ3‐12 to Q4‐13

QAPCO Qatar300 KTAQ1‐12 to Q3‐12

Market Outlook

‐500

0

500

1000

1500

2000

2500

2012 2013 2014 2015 2016


Unit : KMT

14

Short‐term Price ForecastUSD/TonShort‐Term• Most players are still keeping cautious given poor downstream Polyester demand amid uncertain global economic outlook.

• Buying sentiment is expected to be driven up from stronger demand in the downstream textiles and fabrics sectors in China from high manufacturing season in 3Q – 4Q/12

• Cotton price remains high from expected shortage in a near term due to draught in US and Pakistan, and flood in China

Short‐Term• Most players are still keeping cautious given poor downstream Polyester demand amid uncertain global economic outlook.

• Buying sentiment is expected to be driven up from stronger demand in the downstream textiles and fabrics sectors in China from high manufacturing season in 3Q – 4Q/12

• Cotton price remains high from expected shortage in a near term due to draught in US and Pakistan, and flood in China

424 397 381470

1,021893

818 809

1,2511,184

1,015 1,015

1,2371,167

1,0411,130

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q/12 2Q/12 3Q/12 4Q/12


MEGCautious buyers but expect to improve at year end

Market Outlook

0

1000

2000

3000

4000

5000

6000

2012 2013 2014 2015 2016

America Europe India Middle East

China Other Asia Additional demand

Heyuan Chem China500 KTAQ4‐12 to Q3‐13

PetroChina China380 KTAQ1‐12 to postpone

Tongliao Jinmei China400 KTAQ1‐13 to Q3‐13

Tongliao Jinmei China400 KTAQ1‐13 to Q4‐12

Qianxi Coal ChemChina300 KTAQ3‐13 to Q1‐14

MEG Long‐term Supply/Demand



Unit : KMT

15

Short‐term Price Forecast

Short‐Term• PX market in 2H/12 remains under pressure from squeezed PTA margins and high inventory levels among downstream Polyester market.

• Improved demand in the downstream textiles and fabrics sectors in China from high manufacturing season in Q3‐Q4.

• Price will still be driven by high cotton price – inline with views on MEG

Short‐Term• PX market in 2H/12 remains under pressure from squeezed PTA margins and high inventory levels among downstream Polyester market.

• Improved demand in the downstream textiles and fabrics sectors in China from high manufacturing season in Q3‐Q4.

• Price will still be driven by high cotton price – inline with views on MEG

USD/Ton

541 604496 495

1,021893 818 809

1,562 1,4971,314 1,303

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1Q/12 2Q/12 3Q/12 4Q/12


Paraxylene High cotton price helps stabilizing PX demand

Market Outlook

00.51

1.52

2.53

3.54

4.5

2012 2013 2014 2015 2016

Thou

sand

s

America Europe Middle East Asia Additional demand



PX Long‐term Supply/Demand

PetroRabigh Saudi. 1,400 KTAQ3‐15 to Q3‐16

Tenglong Aromatics2China800 KTAQ2‐12 to Q3‐12

Tenglong Aromatics1China800 KTAQ3‐12 to Q4‐12

Sinopec Hainan Ref. China600 KTAQ1‐15 to Q4‐14

MTon

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Short‐term Price ForecastUSD/Ton

Short‐Term• Supply continue to be short due to shutdown of refineries in the US

• Naphtha crackers in Europe are expecting to operate at low level which resulted in decreased supply of pygas

• Demand of BZ weaken from uncertain global economic fundamentals

Short‐Term• Supply continue to be short due to shutdown of refineries in the US

• Naphtha crackers in Europe are expecting to operate at low level which resulted in decreased supply of pygas

• Demand of BZ weaken from uncertain global economic fundamentals

159 225 252 237

1,021893

818 809

1,1801,118 1,071 1,045

0

200

400

600

800

1,000

1,200

1,400

1Q/12 2Q/12 3Q/12 4Q/12


Market OutlookBenzeneLess surplus due to refineries shutdown in US

‐500

0

500

1000

1500

2000

2500

2012 2013 2014 2015 2016




BZ Long‐term Supply/Demand

Daqing PC China150 KTAQ1‐13 to Q3‐12

Anqing PC China54 KTAQ3‐12 to Q1‐13

Samsung Total PCS. Korea422 KTAQ4‐14 to Q1‐15

Nghi Son Vietnam246 KTAQ1‐15 to Q3‐16

Tenglong (Dragon) China229 KTAQ3‐12 to Q3‐13

Unit : KMT

17

0

20

40

60

80

100

120

140

160

Dec‐09 Mar‐10 Jun‐10 Sep‐10 Dec‐10 Mar‐11 Jun‐11 Sep‐11 Dec‐11 Mar‐12 Jun‐12

Dubai ULG 95 Jet Gas Oil Fuel OilUSD/BBL

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

7876 74 84 100 111 107 106 116▲2 ▼4 ▲10 ▲16 ▲11 ▼4 ▼1 ▲6

‐6

2010 Dubai: 78 USD/bbl 2011 Dubai: 106 USD/bbl YTD Dubai: 110 USD/bbl

Dubai106

▼10

2Q/12

Oil Price Price Movement & Crack Spread

2Q/12 Financial Results

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Refinery Intake, Sales, and Margin

Total intake increased 16% YoY and 10% QoQ from additional CR volume

Maximized condensate residue splitter hence yielded higher gasoil

Market GRM of 4.32 USD/BBL but registered stock loss (incl NRV) of 8.79 USD/BBL

Total intake increased 16% YoY and 10% QoQ from additional CR volume

Maximized condensate residue splitter hence yielded higher gasoil

Market GRM of 4.32 USD/BBL but registered stock loss (incl NRV) of 8.79 USD/BBL

+


6.40 3.80 4.32

‐1.37

0.19 0.58

2.28 4.90

‐8.79

‐10.00‐8.00‐6.00‐4.00‐2.000.002.004.006.008.00

10.00

2Q/11 1Q/12 2Q/12

Market GRM Hedging Gain/(Loss) Stock Gain/(Loss) Net NRV

Acct. GRM‐3.89

8.897.31

2Q/12

19

340

255

209246

286

168 184

84

175 177

0

50

100

150

200

250

300

350

400

1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12 2Q

BZ Spot Korea‐Condensate

435359

289

460

692619 590 569 556 567

0

100

200

300

400

500

600

700

800

1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12 2Q

PX FECP‐Condensate

620 648 624 713859

942▲28 ▼24 ▲89 ▲146 ▲121 ▼38 ▼19 ▲83

1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

2010 Nap J: 724 USD/ton

2011 Nap J: 938 USD/ton2011Cond: 926 USD/ton

2010 Cond: 651 USD/ton

1Q/12 Nap J: 1,021 USD/ton1Q/12 Cond: 1,006 USD/ton

USD/TonCondensate980

9231,006 930

2Q/12 Nap J: 893 USD/ton2Q/12 Cond: 930 USD/ton

386

618 263

181

0

200

400

600

800

1000

1200

1400

1600

1800

Dec‐09 Feb‐10 Apr‐10 Jun‐10 Aug‐10 Oct‐10 Dec‐10 Feb‐11 Apr‐11 Jun‐11 Aug‐11 Oct‐11 Dec‐11 Feb‐12 Apr‐12 Jun‐12

Condensate Erawan Naphtha MOPJ BZ Spot Korea PX FECP

AromaticsPrice Movement & Spread


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Aromatics Intake, Sales, and Margin

BTX Rate 90% ‐ improved YoY , QoQfrom higher BTX production

Market P2F of 191 USD/ton, higher 38% YoY from higher discount on feedstock cost

BTX Rate 90% ‐ improved YoY , QoQfrom higher BTX production

Market P2F of 191 USD/ton, higher 38% YoY from higher discount on feedstock cost

*Brent Dtd 2Q/12 108 USD/BBL 2Q/11 117 USD/BBL


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OlefinsFeedstock Breakdown

18% 17% 22% 18% 14% 11% 7%16% 12%

82% 83% 78% 82% 86% 89% 93%84% 88%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12 2Q/12

571 460 562 860 858 740 662 883 883

Unit: K Ton

Gas

Naphtha

Feedstock volume remained the same as in 1Q/12 at 883 Kton with 88% naphtha feed and 12% gas feed. The Company’s I‐4/1 naphtha cracker operated at 71% utilization rate


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Polyethylene and MEG Price Movement and Spread


2Q/12 2Q/11 1Q/12HDEP 1,376 1,389 1,395 LLDPE 1,342 1,380 1,318 LDPE 1,349 1,683 1,391

USD/Ton

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Olefins and Olefins DerivativesSales Volume and U‐Rate

211,116 174,966

216,688

82%86% 89%

0%

20%

40%

60%

80%

100%

0

50,000

100,000

150,000

200,000

250,000

2Q/11 1Q/12 2Q/12

Olefins U‐Rate

203,046 181,766 186,455

103% 99% 101%

0%

20%

40%

60%

80%

100%

120%

100,000

120,000

140,000

160,000

180,000

200,000

220,000

2Q/11 1Q/12 2Q/12

HDPE U‐Rate

61,171 98,715

69,502

60%

100%

77%

0%

20%

40%

60%

80%

100%

(10,000) 10,000 30,000 50,000 70,000 90,000

110,000 130,000 150,000

2Q/11 1Q/12 2Q/12

LLDPE U‐Rate

50,331 59,724

54,184

82%71%

98%

0%

20%

40%

60%

80%

100%

20,00025,00030,00035,00040,00045,00050,00055,00060,00065,000

2Q/11 1Q/12 2Q/12

LDPE U‐Rate

54,425 68,914

89,516 48%

80% 85%

0%

20%

40%

60%

80%

100%

‐

20,000

40,000

60,000

80,000

100,000

2Q/11 1Q/12 2Q/12

MEG U‐Rate

Ton

Ton

TonTon

Ton


24

0

500

1000

1500

2000

2500

3000

Dec‐09 Feb‐10 Apr‐10 Jun‐10 Aug‐10 Oct‐10 Dec‐10 Feb‐11 Apr‐11 Jun‐11 Aug‐11 Oct‐11 Dec‐11 Feb‐12 Apr‐12 Jun‐12

BZ Spot Korea BPA Phenol

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2010 Phenol 1,622 $/ton 2011 Phenol 1,717 $/ton 1Q/12 Phenol 1,484 $/ton2010 BPA 1,945 $/ton 2010 BPA 2,101 $/ton 1Q/12 BPA 1,690 $/ton

Sales Volume and U‐Rate

Remark: BPA started commercial operation in April 2011

2Q/12 Phenol 1,442 $/ton2Q/12 BPA 1,653 $/ton

32,346

44,707

31,081

26,326 12,810 29,160

119%97% 122%

75%

27%

82%

0%

20%

40%

60%

80%

100%

120%

140%

‐

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2Q/11 1Q/12 2Q/12

Phenol BPA Phenol U Rate BPA U Rate

Phenol and BPA Price Movement and Spread


567 803

961 936 791 1,063

706 422 444 468

‐

500

1,000

1,500

1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12 2Q

Phenol ‐ (BZ*0.88)

444 523 532

764862

669 599436 429 428

0

500

1000

1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12 2Q

BPA‐ (Phenol*0.85)

817 746

566 641

25

Revenues Breakdown

Refinery, 41%

Aromatics, 28%

Olefins and Derivative,

21%

Phenol, 4%

Green Chemical, 2%

Others, 5%

Refinery, 52%

Aromatics, 18%


20%

Phenol, 3%

Green Chemical,

3% Others, 4%

Refinery, 48%

Aromatics, 21%

Olefins and Derivative, 20%

Phenol, 3%

Green Chemical, 2%

Others, 5%

2Q/122Q/11 1Q/12

133,202 MB139,241 MB133,666 MB

Petrochemical 53% Petrochemical 41% Petrochemical 44%


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Adjusted EBITDA Breakdown (Exclude Stock Gain/(loss) & NRV)

Refinery, 17%

Aromatics, 4%

Olefins and Derivative, 58%

Phenol, 10%

Green Chemical, 2%

Others, 9%

Refinery, 15%

Aromatics, 11%


62%

Phenol, 2%

Green Chemical, 3%

Others, 8% Refinery,

17%

Aromatics, 11%

Olefins and

Derivative, 58%

Phenol, 2%

Green Chemical,

2%Others, 10%

2Q/122Q/11 1Q/12

14,257 MB 12,892 MB11,201 MB

Petrochemical 72%Petrochemical 75% Petrochemical 71%


27

Statements of Income ‐ ConsolidatedM. Baht % M. Baht % M. Baht % M. Baht % M. Baht %

1 Sales Revenue 139,241 100 133,202 100 133,666 100 6,039 5 5,575 4

2 Feedstock Cost (118,078) (85) (111,996) (84) (114,609) (86) 6,082 5 3,469 3 3 Product to Feed Margin 21,163 15 21,206 16 19,057 14 (43) (0) 2,106 11 4 Variable Cost (3,826) (3) (2,373) (2) (2,966) (2) 1,453 61 860 29

5 Fixed Cost (3,508) (3) (2,986) (2) (3,260) (2) 522 17 248 8 6 Stock Gain/(Loss) & NRV (6,187) (4) 1,183 1 3,409 3 (7,370) (623) (9,596) (281)

7 Gain/(Loss) Hedging Commodity 302 0 (640) (0) 95 0 942 147 207 216 8 Other Income 1,283 1 1,167 1 752 1 116 10 531 71

9 SG&A (2,522) (2) (2,117) (2) (2,478) (2) 405 19 44 2 10 EBITDA 6,705 5 15,440 12 14,610 11 (8,735) (57) (7,905) (54)

11 Depreciation & Amortization (3,697) (3) (3,278) (2) (3,527) (3) 419 13 170 5 12 EBIT 3,008 2 12,162 9 11,083 8 (9,154) (75) (8,075) (73)

13 Financing Expenses (Net Interest Earned)

(1,373) (1) (1,428) (1) (1,325) (1) (55) (4) 48 4

14 FX Gain/(Loss) (1,281) (1) (391) (0) 1,036 1 (890) (228) (2,317) (224)

15 Shares of gain/(loss) from investments 101 0 115 0 (42) (0) (14) (12) 143 340 16 Corporate Income Tax 532 0 (956) (1) (683) (1) 1,488 156 1,215 178 17 Net Profit before Minority 987 1 9,502 7 10,069 8 (8,515) (90) (9,082) (90)

18 Earning Attribute to Minorities (136) (0) (724) (1) (217) (0) (588) (81) (81) (37)19 Net Profit 851 1 8,778 7 9,852 7 (7,927) (90) (9,001) (91)

20 Adjusted EBITDA 12,892 14,257 11,201 (1,365) (10) 1,691 15

2Q/2012 2Q/2011 1Q/2012 YoY QoQ


28

Statements of Financial Position ‐ Consolidated

Non‐CA 35,155

PP&E 238,069

Equities 217,922

CA 94,600

Loans 122,595

Cash+ ST Inv. 22,524 Liab.

49,832

Non‐CA 32,387

PP&E 235,343

Equities 208,454

CA 82,631

Loans 120,165

Cash+ ST Inv. 22,606 Liab.

44,347

December 31, 2011 June 30, 2012

Financial Ratio

390,348 MB372,967 MB


2Q/2012 1Q/2012ROA 5.37% 7.53%

ROE 9.62% 13.22%

Net IBD / Equity 0.46 0.42

Net IBD / EBITDA 2.37 1.80

29

0

5,000

10,000

15,000

20,000

25,000

30,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

PTTGC PTTUT PPCL Others

2011 Q2 2012

PTTGC Debts ~ Bt 122.60 bn

Repayment Scheduleas at 30 June 12

Unit : Million Baht

120,165

28,594(24%)

91,571(76%)

122,595

Unit : Million Baht

30 June 12 ‐ Debt Structure & Cost Cost of long term debts ~ 5.1% (Include W/H

Tax) % Total fixed‐rate long term debt ~ 54%

(THB fixed‐rate debt ~ 42%, Int. ~ 5.4%, USD fixed‐rate debt ~82%, Int. ~ 5.3%)

Average loan life after refinancing ‐ 4.6 Years

THB USD & Foreign

33,773(27%)

88,822(73%)

2Q/12 Financial ResultsPTTGC Repayment Schedule (after Refinancing)

December 31, 2011 June 30, 2012

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Dedication to best‐in‐class execution of the integration and strategic plan

Value‐enhancing investment plan designed to improve profitability and developcompetitive advantages

Petrochemical feedstock cost increase mitigated by PTT’s support for downstreamderivatives expansion and their reinforced commitment to supply natural gasfeedstock for the Company’s debottleneck project

Feedstock price agreement underlines the status as PTT's Petrochemical Flagshipwith strong strategic linkages and attractive business co‐operation opportunities

Commitment to protect and maintain credit ratings through disciplined financialpolicy and prudent investment decisions

Recap and Looking ForwardConclusion

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[email protected]

Thank You

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Change in Calculation Method Refinery Business

Before: GRM Margin on Net IntakeCurrent: GRM Margin on Total Intake

Appendices

• Previously, products internally transferred within the companies were booked at cost while now determined on a market basis.

• Revised information on market GRM and market P2F starting from 1Q/2011 to 4Q/2011 for future reference and consistency

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Before: P2F Margin on Net External Sales Current: P2F Margin on Net BTX Sales

AppendicesChange in Calculation Method Aromatics Business

Analyst Meeting 2Q/12 Operating...

Documents

Transcript of Analyst Meeting 2Q/12 Operating...