dbAccessThailand SET Corporate Day...

dbAccess Thailand SET Corporate DayAustralia/Singaporewith Deutsche TISCO

20-22 November 2017

Overview

Q3 & 9M/2017 Performance

Outlook 2018

Contents

1

Overview Performance Outlook

Indigenous (19%)230 KBD

Imported Refined Petroleum Products 69 KBD

931 KBD (**)

Source: PTIT

Remark : (*)Refined product from refineries = 994 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 108 KBD

(**) Not included Inventory

KBD = Thousand Barrels per day

Import (81%)

Crude/ Condensate900 KBD

RefinedProducts1102 KBD*

Domestic

Crude/ Condensate 195 KBD

Supply Production Sales

Export

224 KBD

Oil Balance Thailand: Jan - Sep 2017 Adequate refining capacity maintains the stability of supply

Total Refining Capacity in Thailand: 1,097 KBD

PTT’s Associated Refineries : 635 KBD

(TOP, PTTGC, IRPC)

Other Refineries : 462 KBD(SPRC, ESSO, BCP)

RefinedProducts189 KBD

2

Crude Export 35 KBD

969 KBD


Natural Gas Balance: Jan – Sep 2017

Gulf of Thailand (67%)

Power (59%)

Industry (15%)

NGV (5%)

Petrochemical Feedstock

(14%)

IndustryHousehold

Transportation(7%)

Ethane/ Propane/LPG/NGL

LPG/NGL

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

Main driver of the Thai economy

Supply Production Sales

LNG40%

Myanmar60%

1,002 MMSCFD (21%)

Methane 1,644 MMSCFD

99 MMSCFD

6 GSPsTotal Capacity

2,820 MMSCFD @ Actual Heat

Import (31%)

1,441 MMSCFD

3

PTTEP,

29%

Others,

71%

3,175 MMSCFD

Bypass Gas528

MMSCFDOnshore (2%)


Largest company on Thai Stock exchange

Market cap ~US$34.8bn1 or ~ THB 1.2 trillion (7.1%1 Thai

Stock Exchange market capitalization)

Group companies: 13.7%1 of Thai Stock Exchange market

capitalization

Majority owned by Thai government (64%)

51% by Ministry of Finance

13% by Vayupak Fund

Fully integrated and highly diversified over the entire O&G value

chain

International exploration and production business with 695

mmboe of proved reserves in 2016

Sole operator and owner of gas transmission pipelines and

GSPs in Thailand

Largest refinery group in Thailand with stakes in 3 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 in Thailand with 1,575 retail

stations2 and 40%2 of market share by sales volume

International oil trading business having traded 74.6 bn liters3

in 2016

Coal business assets in Indonesia and Madagascar

Power Flagship (GPSC) to capture opportunity in neighboring

ASEAN countries

2001 2016

Revenue

Net IncomeAffiliate

PTT

702

55%

19%

2,667

45%

81%19%

IPO

1 As of 30 Sep 2017 : Avg. BOT selling rate USD/THB of 33.53 (End rate)2 As of 30 Sep 20173 For the year 2016 4 As of 31 Dec 2016 : Annual Avg. BOT selling rate USD/THB of 35.47 (Avg. rate)

PTT Public Limited Company (“PTT”) Robust revenue and Net Income growth since IPO (MMUSD) 4

12,553

57,106

International and local recognition

Thailand best borrower award Best 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

146th Fortune Global

500 in 201693rd in 2015

84th 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 2013-2016

(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

13%

Public 36%

Kingdom of Thailand – FC

Baa1 BBB+ BBB+

PTT – FC Baa1 BBB+ BBB+

PTT – LC Baa1 BBB+ BBB+

Largest market cap on the Thai Stock Exchange

Note: As of Sep 2017

• Foreign 16%

• Thai 20%

PTT PTTEP PTTGC TOP IRPC GPSC Total Others

Market cap (BNUSD)2 34.8 10.6 10.4 5.6 3.8 2.1 67.3 424.0

% of SET 7.1% 2.2% 2.1% 1.1% 0.8% 0.4% 13.7% 86.3%

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

S&P rating BBB+ BBB+ BBB BBB BB+ BBB- - -

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 As of 30 Sep 2017 : Avg. BOT selling rate USD/THB of 33.53 (End rate)

5


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 49.39% Petrochemical Flagship

TOP 49.10% Refinery Flagship

IRPC 38.51% Integrated Refinery & Petrochemical

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 Global Management 100% Coal Business

Power


7

PTT Strategic Framework

Vision: “Thai Premier Multinational Energy Company”

BIG: FT 100 Treasure

for Sustainability

Pride

with Inclusiveness

Business Transparency Governance, Risk, Compliance

Community Shared Value & Environmental Responsibility

National Wealth Creator & Energy Security Enhancer

1

2

3

Aspiration: Pride & Treasure of Thailand

Mission: Balance All Stakeholders

Strategic Objectives

People FinanceEnablers: CCSRDigitizationRTI , ExpresSo & CVC

State Enterprise

Listed Company

Core Value: Synergy Performance excellence Innovation Responsibility for society Integrity & ethics Trust & respect


40,06749,722

8,963

19,35920,044

29,001

5,877

8,657

571

(6,923)

24,750

10,302

7,102 13,131

3,720

18,458 8,813

Margin

FX & Derivatives

OPEX* Depre & Amortiza-

tion

Other Income Int. &

CIT exp.& Other**

9M/16 9M/17

PTTEP

PTT

Others Affi.

P&R

OilMargin declined mainly from lower stock gain Non-oil expansions (Amazon & 7-11)

Gas

GSP margin improved from lower feed cost, higher petchem prices, and increased vol. (9M17: No Major T/A)S&M margin rose

PTTEPImproved ASP from oil price recoveryLower unit costReduced sales volume

9M/2017 Performance: Record nine-month performance: Contributed from most businesses

8* including petroleum exploration expenses and royalties** including profit from discontinued operation

75,522

MMTHB

99,816

Net Income

74,951

Operating Performance

106,739

Petrochem & Refining

Better Olefins due to both prices and vol.Improved MKT GRM Aromatics increased from BZ spreads and sales volume

Impairment Oil Sand (Canada) 558 MMUSD

Dividends from mutual fund

Extra Items


24%

116%

47%

45%

PTTNGD : higher FO price & lower feed cost Coal performance improved from higher ASP

Others Affi

Extra Items

Impair

9

ContentsOverview Performance Outlook

Overview


Outlook 2018

53

-482

43

-291

167 218345

596

48.19 48.46

39.37

49.87

38.08 38.7836.00

38.29

Q2/17 Q3/17 9M/16 9M/17

E&P : Positive core earnings while NI suffered from one-time impairment

Product Prices

Net Income (100%)

Sales Volume

Key Highlights

Liquid ($/BBL)

Gas($/MMBTU)

Weighted Avg.

($/BOE)

MMUSD

200 204 224 205

81 9497

90

Q2/17 Q3/17 9M/16 9M/17

Liquid

Gas

KBOED

10

281

305

220(264)

*** Includes 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.

Non-recurring***

Recurring NI

298321

E & P Gas Oil & Trading P&R Others

8% YoY


1% QoQ

27% YoY

1% QoQ

4% YoY

2% QoQ

6% YoY

QoQ

• ASP slightly increased from the rise of gas price adjustment in Myanmar projects

• Sales vol. rose from recoveries of MTJDA & Bongkot (S/D in Q2)

• NI decreased from impairment of Mariana Oil Sands Project in Canada amounting of 558 MMUSD

YoY

• ASP increased from the rise in oil price

• Sales vol. decreased from PTTEP Australasia & MTJDA

• NI drop from impairment despite higher recurring NI from lower DD&A

21% YoY

295

388

>100% QoQ

5.665.72 5.75

5.54

6% QoQ

11

E&P: Outlook


11


Financial Outlook

9M’17 FY2017

Avg. Sales Vol. (KBOED)

~295 300

Avg. Gas Price ($/MMBTU)

~5.5 ~5.6

Unit Cost(USD/BOE)

~28.4 ~29

EBITDA margin (% of Sale Rev.)

~70

*Based on FY2017 Dubai oil price at 52 $/BBL

Exploration Portfolio• Focus on prolific areas &

Quick Commercialization• Participating in bid rounds

in potential areas

Priority on New Investments

M&A• Focus on producing or

near-producing

LNG Value Chain• Corporation with PTT in

LNG opportunities

Priority on Pre-Development Projects

Geographical• Thailand, SEA, Middle East• Potential areas

Path to re-tendering of expiring concessions in the Gulf of Thailand

Interest Production Expected Start-up

Mozambique Area 1 8.5% 12 MMTPA 2022/23

Contract 4 (Ubon) 60% 25-30 KBPD 2021

Algeria HBR

Southwest Vietnam

24.5%

7-8.5%

50 KBPD

490 MMSCFD

2023

2021

12


PTT EBITDA Breakdown by BU’s:

Business Unit Q2/17 Q3/17 QoQ 9M/16 9M/17 YoY

Gas- EBITDA 21,884 20,628 (6%) 51,610 65,002 26%

• S&M 4,003 3,943 (1%) 6,852 11,549 69%

• TM 8,663 8,428 (3%) 24,949 25,828 4%

• GSP 7,041 5,912 (16%) 14,833 20,650 39%

• NGV (1,271) (1,052) 17% (3,019) (3,332) (10%)

• Others 3,448 3,397 (1%) 7,995 10,307 29%

Oil- EBITDA 4,541 4,613 2% 18,675 15,085 (19%)

Trading*- EBITDA 897 686 (24%) 4,059 3,491 (14%)

Total** 27,322 25,927 (5%) 74,344 83,578 12%

(Unit: MMTHB)

*MIS** Included subsidiaries from all BUs 12

8.5 7.9

7.3 6.6

6.2 5.8 5.6 5.4 5.5

6.0 5.8

318

607

265

217

160

219

247

296318

304 312

0

100

200

300

400

5

7

9

11

13

15

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

797 754 1,010 797

952 972992

946

1,002 1,064 857 1,013

1,006 931 922 982

725 731 715 721

270 265 286 271

Q2/17 Q3/17 9M/16 9M/17

4,7304,752%QoQ %YoY

FO 2% 49%PooledPrice 3% 2%

12.1

12.312.2 12.1

6.68 6.73

7.81

6.83

Q2/17 Q3/17 9M/16 9M/17

Gas BU: Pooled gas still low, while NG volume decreased from Power

NG Price VS FO NG Customer Breakdown

$/MMBTU

EGAT (17%)

IPP (20%)

SPP (21%)

GSP (21%)

Industry (15%)

NGV (6%)

MMSCFD

4,717

NGV Price/Sales Volume

QoQ

• Gas cost lowered, while F/O price rose following crude oil price

• NG sales volume slightly decreased from GSP’s planned T/A

• NGV volume and prices marginally increased

YoY

• Overall NG sales slightly decreased mainly from lower power demand offsetting with GSP major T/A last year

• NGV vol. dropped from demand switching to gasoline and diesel

Key Highlights

นของ

K.Ton/Day

13

13% YoY


4,782$/Ton

Fuel Oil*

* MOPS HSFO 180 CST

Avg. Pooled gas price LHS

RHS

1% YoY

•

THB/KG

NGV Avg. price

1% QoQ

1% QoQ


1% YoY2% QoQ

1,188

1,375

1,234

1,153 1,103

1,153 1,139 1,134 1,176

1,133 1,138

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

443

497 470

440 431 427 420 378 375 386 395

380 359 352

310 309 297 288247 250 265 268

65,002

5,005

4,003 3,943 6,852 11,549 8,663 8,428

24,949 25,828

7,041 5,911

14,833

20,650

(1,272) (1,052) (3,019) (3,332)

3,448 3,397

7,995

10,307

Q2/17 Q3/17 9M/16 9M/17

Propane (11%)

Gas - EBITDA

MMTHB

Others

TM

GSP21,884 20,628

S&M

NGV

733 728

2,072 2,179 170 161

533 501

594 539

1,449 1,720

219 171

611 573

11 10

18 32

Q2/17 Q3/17 9M/16 9M/17

GSP Sales Volume

LPG (44%)

kTon

1,609

7% QoQ

7% YoY

Gas BU: Performance improved from most segments mainly from GSP

NGL (10%)

Ethane (34%)

Key Highlights

GSP Feed Cost vs Petchem price

USD/Ton

Feed Cost*

LPG Ex-GSP

* Revised feed cost calculation from per sale volume to per GSP production volume

Pentane (1%)

1,727

51,610

14

HDPE

26% YoY

QoQ

• GSP dropped from planned T/A although selling prices maintained

• S&M decreased from lower industrial performance

• NGV loss less from increased NGV selling price

• Gas EBITDA decreased mainly from GSP’s maintenances

YoY

• GSP greatly improved from declined feed cost, higher selling price, and

increased sales volume w/o major T/A

• S&M margin increased esp. from Industrial customers

• Gas EBITDA improved in almost all segments, despite NGV

6% QoQ

4,683



%QoQ %YoY

HDPE 0% 2%

LPG Ex-GSP 2% -10%

Feed Cost 1% -12%

LNG Terminal 1 Phase 2 :

- Construction completed

- Initial Acceptance : 6 Jun 2017

New LNG projects :

1) LNG Terminal 1 phase 2 Extension :

(Capacities expansion from 10 MTA to 11.5 MTA)

- Approved by Cabinet 12 Jul 2016

- Expansion capacity: 1.5 MTA

- Construction completed 67.78% (as of Sep 17)

- COD : 2019

2) LNG Terminal 2 (Onshore LNG Terminal No.2)

- Approved by Cabinet 11 Apr 2017

- Capacity: 7.5 MTA

- Sending EIA (Completed Report) to ONEP Jul17

- Preparing for EPC Bidding

- COD : 2022

Additional LNG projects (submitted studies to

CEPA and NEPC on July 2017)

− Myanmar-Thailand LNG Terminal

− FSRUs (domestic)

− Onshore LNG Terminal 3

Gas Business Roadmap

LNG ProjectsNG Country Demand



15

New Project

LNG Ph#2

MajorProject

COD

LNGCapacity

(MTA)

10 10

• Offshore Comp.

• 4th

onshore Midline Comp.

7

• Comp Wangnoi

• Nakhon Ratchasima

LNG Ph#2(Early Sent

Out)

11.5 11.5

LNG Terminal#1 - Extension

11.5

• 5th

Pipeline

Gas Facilities Expansion

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Jul-17 Aug-17 Sep-17

881 957 2,508 2,752 3,660 3,656

16,167 12,333

Q2/17 Q3/17 9M/16 9M/17

1.00

0.74 0.87 0.95

6,408 6,242

19,856 19,428

Q2/17 Q3/17 9M/16 9M/17

QoQ YoY

Oil 0 % 24%

Non-oil 9% 10%

Oil BU : Soften performance from lower stock gain

MMTHB

THB/Liter

16

Oil

Non-Oil*

Gross margin1/Sales volume2

MM Liter

1/Excluded Non-oil, stock gain/loss, non-recurring item 2/PTT only

9% YoY

2% YoY

-466 1,489 4,300 840

Petroleum Prices

Stock Gain/Loss(MMTHB)

26% QoQ

3% QoQ

Oil - EBITDA

USD/BBL

(Average Prices)

Key Highlights

QoQ

• Gross margin declined mainly from Jet A-1 price structure (Buy M, Sell M-1) following upward price trend in Q3/17 vs declining trend in Q2/17

• Sales vol. decreased mainly due to lower gasoil demand effect from serious flooding situation

• EBITDA increased from stock gain despite lower margin

YoY

• Higher gross margin mainly from strong gasoline demand

• Lower EBITDA mainly from lower stock gain in 9M/17 despite higher margins & non-oil performance

4,6134,541

15,085



* Domestic only

18,675**

* Revised sales volume in Q1/17 and Q2/17 due to included LPG trade volume with Trading BU (Inter-BU Trade)

*

** Restated

17,922 18,872

55,252 56,107

Q2/17 Q3/17 9M/16 9M/17

QoQ

• Gross margin & EBITDA decreased mainly from

- Different settlement period of physical/paper hedging for products

inventory management

- Lower domestic condensate margin

• Sales volume increased from higher crude demand of domestic refineries resumption in Q3/17

YoY

• Gross margin & EBITDA declined mainly from slimmer margin per unit due to backwardation market and accounting adjustment (provisional to final price & FX)

• Sales volume improved from expansion of trading activities in Western hemisphere

0.07 0.06

0.09 0.08

Q2/17 Q3/17 9M/16 9M/17

1 PTT Trading BU + trading subsidiaries: FX Adjusted + derivatives

897 686

4,059 3,491

Q2/17 Q3/17 9M/16 9M/17

Gross Margin1

Trading – EBITDA1

Sales Volume2

Key Highlights

MMTHB

MM Liter

14% YoY

Gross Margin (THB/Liter)

2% YoY

24% QoQ

11% YoY14% QoQ 5% QoQ



2 PTT Trading BU + trading subsidiaries

17

1 PTT Trading BU + trading subsidiaries: FX Adjusted + derivatives

Trading BU: Performance declined from squeeze margin

59,990

4.94

6.89

4.08

5.81

3.40

8.38

4.43

5.94

Q2/17 Q3/17 9M/16 9M/17

QoQ YoY

A/C GRM 146% 34%

3,249 7,605

15,420 17,929

1,229

3,247

8,027 6,841

6,603

9,955

15,857

29,740

1,880

-

4,209

2,857

1,214

95

662

2,623

-

Q2/17 Q3/17 9M/16 9M/17

338 320 253

372 383 360 407 388

Q2/17 Q3/17 9M/16 9M/17

66% 82% 82% 75%

18

Net Income (100%)

P&R BU : Strong GRM, Olefins and BZ performance except PX

14,17520,902

IRPC

TOP

Unit : MMTHB

18

44,175

Aromatics

BZ-Cond

PX-Cond

USD/Ton



PTTGC

HMCOthers

BTXU-Rate

49.8 50.538.9

51.1

GRM

USD/BBL

A/C GRM*Mkt GRM

Dubai

-1.34 1.73 0.73 0.33StockGain/Loss

*A/C GRM and A/C GIM include effect from hedging gain/(loss)

1,133 1,138 1,132

1,149

1,114

1,149

1,034

1,141

Q2/17 Q3/17 9M/16 9M/17

Olefins

Olefins U-Rate

89% 96%86%

93%

USD/Ton

HDPEPrice

PPPrice

QoQ YoY

BZ 5% 47%

PX 6% 5%

QoQ YoY

HDPE 2%

PP 3% 10%

36% YoY

47% QoQ

P&R : Upcoming Projects

19



2018 2019 2020

UHV Catalyst Cooler

mLLDPE

ME plants2

PO/Polyols

MTP Retrofit

PP Expansionand

PP Compounding

Gasoline Maximization

mLLDPEME

plants2UHV

Catalyst CoolerPO/

PolyolsMTP

RetrofitCFP

CapacityPPE +160 KTAPPC +140 KTA

To capture domestic market gasoline deficit

mLLDPE(400 KTA)

Hexane -1 (34 KTA)

Methyl Ester (200 KTA)

Flexibility of crude selection

and fully optimized UHV

operation

PO (200 KTA)

Polyols (130 KTA)

Ethylene (500 KTA)

Propylene (250 KTA)

upgrade lower value product into

higher value product and

ability to process heavier (cheaper)

crude oil

CAPEX 236 MUSD 1,100 MB 288 MUSD 47 MUSD 1,390 MB 888 MUSD TBA TBA

CODPPE Sep 2017PPC Dec 2017

End 2017 Q1/2018 Q4/2018 2019 2H2020 2H2020 2022

2022

CFP

PTTGCIRPC

TOP

Gasoline Maximization

PP Expansion & PP Compounding

2017

19

27.6 30.7

9.3

77.3

Q2/17 Q3/17 9M/16 9M/17

6874

45

69

4348

36

47

80

97

56

85

Q2/17 Q3/17 9M/16 9M/17

Other Businesses : Coal - SAR Better performance from higher market coal price and cost control

Net income

Sales Volume

Key Highlights

MMUSD

USD/Ton

1,925 2,086

5,639 5,763

- -

1,415 71

1,925 2,086

7,054

5,834

Q2/17 Q3/17 9M/16 9M/17

kTon

Jembayan

SebukuAvg.

Selling Price

Total Cash Costs

8% QoQ

Avg. Selling Price* & Cash cost*

New Castle

17% YoY

>100%YoY

22%

54%

52%

30%

QoQ YoY

QoQ

• Cash cost increased from higher contractor expense and royalties linked with Newcastle

• Sales volume increased as plan

• Performance improved mainly from

- Increase in sales volumes & coal price

- One-time CIT refund

YoY

• Cash cost increased from Newcastle linked variable cost

• Sales volume declined mainly from Sebuku temporary suspension

• Performance improved mainly from higher market coal price and cost control

*Average Calorific value ~ 5,500 kcal/kg


12%

11% QoQ


20

9%

http://www.straitsasia.com/


QoQ YoY

Power 49% 9%

Steam 2% 5%

1,365 690

3,796 3,472

1,632 1,597

4,963 4,713

Q2/17 Q3/17 9M/16 9M/17

Combine Cycle : IPP

64.5%

Cogen : SPP32.5%

Renewable2.6%

Combined heat : VSPP

0.4% Hydro Electricity

68%

Cogen: SPP 28%

Renewable4%

815888

2,2812,453

Q2/17 Q3/17 9M/16 9M/17

Net Income (100%)Sales Volume*

Key Highlights

MMBahtGWh

Other Businesses : Power - GPSC Performance improved from lower maintenance cost and higher share of profit

‘000 Ton

Committed Capacity

PowerSteam

Operating1,410 MW

Underconstruction

512 MW

8% YoY9% QoQ

Present 2019



*sales vol. of Sriracha, Rayong & IRPC-CP phase 1 plants

QoQ

• Lower power sales vol. from IPP as EGAT dispatch instruction and IRPC-CP S/D for commissioning test between phase I&II, also effecting lower steam sales vol.

• Better NI from Rayong Plant with higher electricity price, lower maintenance cost, dividend received from RCPL and income from contractor of IRPC-CP Phase I

YoY

• Lower power sales vol. from lower dispatch to EGAT

• Lower steam vol. from SPP as higher no. of customers S/D in 9M17 and S/D for commissioning test of IRPC-CP

• NI rose as lower NG & maintenance cost, S/D of gas turbine in Q3’16 (Rayong Plant) and higher share of affiliates profit 21





Other Businesses : Power – GPSC



Project Type Capacity COD Construction Progress

as of Q3/17

IRPC-CP Phase 2 (SPP)

Gas-Fired Power Plant

• Electricity: 240 MW• Steam: 180-300 T/H

Q4’17 99.8%

Ichinoseki Solar Power 1GK (ISP1)

Solar • Electricity: 20.8 MW Q4’17 92%

Project Highlight: COD: 2 projects in Q4’17

22

1% QoQ

7%

55%

29%

9%

31,317 22,331

75,522 99,816

30,397 34,484

74,951

106,739

Q2/17 Q3/17 9M/16 9M/17

49.8 50.538.9

51.1

PTT Consolidated Performance: 9M/2017

Avg. Dubai (USD/BBL) 9M/179M/16

478,788 475,178

1,241,989

1,463,763

Q2/17 Q3/17 9M/16 9M/17

PTT

P&R

Others PTTEP

Net Income

Unit : MMTHB

EBITDA

Net Income/Operating Performance

RevenueRevenue

EBITDA74,910 87,011

229,058251,182

Q2/17 Q3/17 9M/16 9M/17

23

31%

26%6%

35%

2%

EBITDA

P&R

PTT - Gas

Others

PTTEP

PTT - Oil

& Trading

Net Income


YoY32%42%

5%

15%

48%

31%

1%

Revenue

PTT - Oil

& Trading

PTT - Gas

OthersPTTEP

P&R

QoQ29%13%

10% YoY

31% YoY

18% YoY1% QoQ

16% QoQ

6%

18%

46%

29%

1%

36%

23%

10%

30%

1%

12%

53%

27%

8%

PTT Ratings at Sovereign Level

− FC : Moody’s (Baa1), S&P (BBB+),

FITCH (BBB+)

− LC : Moody’s (Baa1), S&P (BBB+),

FITCH (BBB+)

MMTHB

Statement of Financial Position

24


Assets/Liabilities slightly decreased :

• Decreased in PPE due to depreciation exp.

• Decreased in cash and cash equivalent and S/T

investment from dividend payment and debt

repayment of PTT and affiliates

AP & Other Liabilities

PPE

Others Non-

currentAssets

AR & 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

1,116,170 1,091,249

374,577 372,414

349,204 349,976

392,380377,452

1,171,597 1,206,550

583,323 547,721

477,411 436,820

1 2 3 4 5

2%

2,232,3312,191,091

30 Sep 1731 Dec 16

0.19 0.17

0.71

0.60

YE16 9M/17

Net Debt/EBITDA ≤ 2.0

Net Debt/Equity ≤ 1.0

Infrastructure, 43%

Gas, 4%Oil & Trading, 12%

Other Wholly

Owned Sub. , 4%

Capital Restructuring,

22%

LNG, 14%

Others, 1%

2017 2017(revised)

2018 2019 2020 2021

4,566 3,792 3,887 2,382 2,066 2,304 10,376 9,350 9,036 7,265 7,785 6,736

867 6,410 510

556 597 620

47,215 57,635

51,975

14,313 13,944 7,551

20,637

16,812 36,874

35,970

9,935 40,882

Infrastructure

Investment in whollyowned subsidiaries

Head Office andOthers

Oil and InternationalTrading

Natural Gas

PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 339bn (~ $10bn1) during 2017-2021

By Business Unit

Investment in

Wholly Owned

Subsidiaries

40%

102,282

34,327

58,093

83,661

60,486

22017 budget revision approved by BOD on 16 Jun 17

5th pipeline & extension

JV & Investment in 100% owned subsidiaries

Unit: MMTHB

PTT 5-Years CAPEX Plan ̴Bt 339 bn

25

CAPEX revision Y2017:

• CAPEX increased by ~ THB 10.3 bn mainly from

Head Office: LNG value chain opportunistic investment

Wholly owned subsidiaries: Land purchase for LNG Terminal 2

93,9992

1FX rate = Baht 34/$


7.718.75

13.43

22.40

30.57

34.1434.82

18.33

21.06

29.58

37.24 36.58

32.52

20.34

6.73

32.68

26.84

2.50 2.854.00

6.75

9.2510.50

11.50

8.008.50

10.25

13.00 13.00 13.00

11.0010.00

16.00

8.00

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% 54.1%

148.6%

49.0%29.8%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20161H/2017

PTT’s minimum payout ratio

Baht / share

EPS

DPS

Dividend payout

26

Dividend Policy & Historical PaymentsPTT is firmly committed to pay dividend at no less than 25% of net income


27

Contents

Overview


Outlook 2018


Summary: Outlook 2018

Business 9M 2017 2018 (Forecast)

Reason

Gas Price ($/mmbtu)

- Henry Hub

- JKM

3.05

6.28

Range

2.9 – 3.3

5.9 – 6.9

HH: • Higher demand from domestic & overseasJKM: • Steady demand growth in the power and

industrial sectors and the emergence of new buyers

• Incremental supply to Asia will depress spot prices

Oil Price ($/bbl)

Dubai Price 51.1

Range

52 - 57

OPEC to extend output-cut deal amid strong demandGeopolitics supports: Iraq vs. Kurdistan/ US to impose new sanctions on IranHigher possibility of U.S. shale oil production

Refinery Margin ($/bbl)

Singapore GRM 7.04

Range

6.8 – 7.0

2017 product cracks spiked in Q2 and Q3 due to Shell’s Pernis refinery shutdown and impact of Hurricane HarveyHigher demand from healthier economic growth

Petrochemical ($/ton) - Olefins (HDPE, PP)

- Aromatics (PX, BZ)

HDPE = 1,149PP = 1,141

PX-Naphtha = 384BZ-Naphtha = 358

HDPE = 1,133PP = 1,103

PX-Naphtha = 355-365BZ-Naphtha = 320-330

Olefins:- More PE availability from US producers- New PP capacity addition from China and IndiaAromatics:- Higher feedstock cost (Naphtha)

Increasing BZ supply (Petro Rabigh, Nghi Son)


28

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. Please do not circulate this material. If you are not an intended recipient,

you must not read, disclose, copy, retain, distribute or take any action in reliance upon it. In addition, such information contains projections and forward-looking statements

that reflect our current views with respect to future events, financial performance and result of PTT’s activities. 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.

The information contained in this presentation is subject to change without notice and PTT does not undertake any duty to update the forward-looking statements, and the

estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

29

29

mailto:[email protected]

http://www.pttplc.com/

30

Debt Portfolio

ConsolidatedPTT OnlyUnit : MMTHB

: Cost of debts ~ 4.75%: % fixed-rate ~ 70%: Avg. debt life ~ 8.21 years

: Cost of debts ~ 4.29%: % fixed-rate ~ 68%: Avg. debt life ~ 5.85 years

184,091147,592 142,579

368,733325,524 326,801

81,15481,245 62,776

256,588

250,968 214,952

265,245228,837

205,355

625,321576,492

541,753

31 Dec 15 31 Dec 16 30 Sep 17 31 Dec 15 31 Dec 16 30 Sep 17

USD&Other

THB

(31%)

(69%)

(31%)

(69%)

(41%)

(59%)

(40%)

(60%)

Note : Data as of 30 Sep 17 (THB/USD = 33.5324 THB/JPY = 0.30013) Excluding liabilities from finance leases; Cost of debts includes withholding tax.

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

(36%)

(64%)

(44%)

(56%)

Debt Profile : Control Cost & Manage RiskManaged debt according to financial risk and policy

30

Free Cash flow

48,182 103,115

Ending Cash & Cash Equivalents

185,429 195,453

Ending cash incl. S/T investment

356,032 377,452

Beginning Cash and Cash Equivalents

239,978 215,566

Cash In/(Out)

(54,549) (20,113)

Adjustment

65 (10,459)

Statements of Consolidated Cash Flows : 9M/2017

31

Operating9M/2016 9M/2017

183,124 205,951

Net Income 75,522 99,816

Changes in assets & liabilities (19,150) (19,582)

Income Tax (29,073) (32,545)

Non-Cash Adjustment 155,825 158,262

Investing9M/2016 9M/2017

(134,942) (102,836)

CAPEX (PP&E, Intangible asset) (82,814) (77,068)

Investment (Sub. & Affiliates & others) (2,015) (23,906)

Current investment (53,025) (5,185)

Dividend/Interest Received 7,506 12,634

Others (4,594) (9,311)

Financing (102,796) (112,769)

Repayment Loans (64,052) (62,029)

Interest paid (23,238) (23,237)

Dividend paid (44,374) (73,320)

Received from share issue 102 3,056

Received from loans/Bonds 23,610 41,639

Others 5,156 1,122

Statements of Cash Flows (PTT Only) : 9M/2017

32

Free Cash Flow

43,364 52,209

Adjustment

63 111

Beginning Cash and Cash Equivalents

67,524 62,648

Cash In/(Out)

(22,035) (23,675)

Ending Cash & Cash Equivalents

45,489 38,973

Ending cash incl. S/T investment

97,348 118,906

Operating9M/2016 9M/2017

55,861 54,602

Net Income 62,788 83,768

Changes in assets & liabilities (3,997) (11,924)

Income Tax (5,073) (9,240)

Non-Cash Adjustment 2,143 (8,002)

Investing9M/2016 9M/2017

(12,497) (2,393)

CAPEX (PP&E, Intangible asset) (16,806) (16,484)

Investment (Sub.& Affiliates & Others) 323 (34,224)

Current investment (17,391) (20,618)

Dividend/Interest Received 24,098 39,912

Others (2,721) 29,021

Financing (65,462) (75,995)

Repayment Loans (27,702) (18,520)

Interest paid (9,956) (8,579)

Dividend paid (28,560) (51,413)

Received from share issue - -

Received from loans/Bonds 756 2,517

Others - -

3333

PTT Group Performance : 9M/2017 (YoY)

33

PTT Group Performance : Q3/2017 (QoQ)

34

Subsidiaries ConsolidatePTT (Cambodia) Co., Ltd. PTTCL 100.00%PTT Oil & Retail Business Co., Ltd. PTTOR 100.00%Thai Lube Blending Co., Ltd. TLBC** 48.95%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 0.0000090%

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%PTT Global LNG Co., Ltd PTTGL 50.00%

Petrochemical Subsidiaries ConsolidatePTT Polymer Marketing Co., Ltd. PTTPM 50.00%PTT Polymer Logistics Co., Ltd. PTTPL**50.00%PTT Global Chemical Plc.* PTTGC 49.39%PTT Maintenance and Engineering* PTTME 40.00%PTT Energy Solutions Co., Ltd.* PTTES 40.00%PTT Tank Terminal Co., Ltd. PTTTANK 100.00%

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

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

Others Fair ValueStar Petroleum Refining Co., Ltd. SPRC 5.41%

Others Fair ValueDhipaya Insurance Plc. TIP 13.33%

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

International Trading Business Group

Subsidiaries ConsolidatePTT International Trading Pte. PTTT 100.00%PTT International Trading London Ltd PTTTLDN 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 Sep 2017

International Investment

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

35

3636

Natural Gas Price Structure : Jan-Sep 2017

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.

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

*

*

*

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

36

GSP 21%

Petrochemicals Feedstocks

Industry 15%

Ethane, Propane, LPG

NGL

Local Cooking Gas

Export Cooking Gas

Power Producers 59%

: EGAT 17%

: IPP 20%

: SPP 22%

NGV 5% • Since 16 Jul 2016 : The retail price is set to reflect the natural gas cost but operating cost is still regulated.

• Since 5 Sep 2017 : Allowance to adjusted +0.46 Baht/Kg. for gas quality improvement cost

• NGV retail Price as of 30 Sep,17 = 13.46 Baht/Kg.

Thailand Gas DemandReplace :coal (3,340 MW), AE and EE 30%

Natural Gas : Growth of natural gas upon Government fuel diversification policy for power generation

37

Thailand Gas demand forecast (CAGR during 2017-2031): Total ~ 1%: Power ~ 3%: GSP ~ -5%: Industry ~ 1%: NGV ~ -5%

New Plan

Gas Business Generates Stable Returns

Sole owner and operator of entire

gas transmission pipelines in

Thailand (~ 4,000 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

38

Overview Gas transmission pipeline capacity

Gas Separation Plant Capacity

Unit 1 420 MMcf/d

Unit 2 and 3 820 MMcf/d

Unit 4 170 MMcf/d

Unit 5 570 MMcf/d

Unit 6 840 MMcf/d

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