Hongkong: 1-2 March 2007 Singapore: 5-6 March 2007

Presentation to Investors

Thai Oil Public Company Limited

Arranged by Citibank, N.A.Hongkong: 1-2 March 2007Singapore: 5-6 March 2007

2

DisclaimerDisclaimer

The information contained in this presentation is intended

solely for your personal reference. 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.

3

Corporate Vision, Mission and ValueCorporate Vision, Mission and Value

TOP seeks to be one of the leading fully integratedrefining and petrochemical companies in the region

recognized for our sustainable growth, optimum stakeholder value, and commitment to environmental

and social well-being.

Vision

• To be PTT’s flagship refinery through optimized management of the group’s refining portfolio

• To expand facilities to better meet domestic demandgrowth

• To enhance the competitive advantage of our power generation operations to further solidify the core refining business

• To create a high-performance organization that promotes teamwork, innovation and trust

Mission

P = ProfessionalismO = Ownership & CommitmentS = Social ResponsibilityI = Integrity

T = Teamwork and CollaborationI = Initiative

V = Vision FocusE = Excellent Striving

Value

4

ContentsContents

• Company Overview

• Business Outlook

• Progress of Investment Projects

• Consolidated Financial Performance

5

PTT Group 80%

Thai Lube Base

(TLB)

9%55%

SPP program3-on-1 Combined cycleElectricity 118 MWSteam 168 T/hrUtility Supply to Group

IPP program2-on-1 Gas-fired,Combined cycleElectricity 700 MW

Related Business & Earnings Stability

Thai Paraxylene

(TPX)

Capacity: Current: 348 KTA (PX)

72 KTA (MX)

Q4/07: 900 KTA (Total)489 KTA (PX)177 KTA (Bz)144 KTA (To) 90 KTA (MX)

Capacity: Lube Base oil: 270 KTA

A fleet of 5 oil & petrochemical vessels with int’l classifications

Total capacity: approx 30,000 DWT

Multi-product Pipeline Capacity: 26,000 mn. Litres/Y.

PTT 20% TOP 24%

100%

56%

100% 100%

Capacity: Current: 225 Kbd

Refinery Petrochem/Lube Base Oil

Power/Renewable Energy Transportation / Others

PTT 26% J-Power 19%

Q4/07: 275 kbd

20%

Thaioil

(TOP)

Independent Power

(Thailand) (IPT)

Thaioil Power

(TP)

Thaioil Marine

(TM)

Thappline

PTT ICT Solutions

(PTT ICT)

30% Maesod Clean

Energy

Mitr Phol Group 35% Padaeng 35%

Sugar Cane Based Ethanol

Q1/09: 0.1 mn. L/D

Core Refining Operations Value Enhancement Product Marketing / IT Support

PTT 31% Others 60%

Plat 1.8 MTA

TOP’s Group StructureTOPTOP’’ss Group StructureGroup Structure

6

TOP – One of Region’s Leading RefineriesTOP TOP –– One of RegionOne of Region’’s Leading Refineriess Leading Refineries

Gulf of Thailand

Total Refining Capacity = 1,042 kbd

ESSO (170 kbd)

IRPC (150+65 kbd)

BCP (120 kbd)

SPRC (150 kbd)RRC (145 kbd)

TOP (225 kbd) (275 kbd) PTT’s Flagship Refinery

Bangkok

RPC (17 kbd)

Nationally: • Largest, most complex & highly integrated. • The flagship refinery of the PTT group.

• Advantageous site location (120 km east of Bangkok) –Close to the market.

• Highly capable and experienced management / staff.

Source: PTIT Focus Special Annual Report 2004, except for capacity figure for RRC (based on RRC Offering Memorandum)

Regionally:• One of the most complex in the region with TCU, HCU,

FCCU, CCR and ISOM.

• High operational flexibility from multiple-unit configuration.

• High complexity ratios (Oil & Gas Journal / Nelson Index – 8.6).

• Top-ranked performance according to Shell’s and Solomon’s benchmarking exercise:

• High efficiency / utilization• Low cash operating cost

Well diversified earnings through significantly increase in subsidiaries’ contributions.

7

2006 Key Highlights 2006 Key Highlights

• Successfully increased refining capacity by 5 kbdto 225 kbd from synergy project with TLB.

• Maintained high utilization of Refinery, TPX and maximized lube base production (after 1st major turnaround and by co-processing Hydrocrackerbottom).

• Maintained high integrated Refinery / TPX / TLB margin through joint production planning, cooperation within PTT group, products diversification and margin improvement program:-

• Collaborated with PTT / RRC / IRPC for crude sourcing and delivery, thereby reduced freight costs,

• Maximized jet production / export at the expense of diesel during flooding in Thailand,

• Increased overall margin ~ US$ 0.50/bbl through Hydrocarbon Management Review (HMR) and other activities.

• Repaired & reinstalled transformer 2 months ahead of plan and received satisfactory insurance compensation (BI of Bt. 328 mn. & PD of Bt. 66 mn.).

Operation & Commercial Investment

• All approved major projects progressed as planned.

• Engaged PMC for 500,000 L/D ethanol plant (cassava-based) with an aim to complete project specification and detailed cost estimate by Q2/07.

• Signed JV agreement with PDI and Mitr Phol to study & develop 100,000 L/D ethanol plant (based on sugar cane) at Maesod, Tak to diversify feedstock sources.

Finance• Paid annual dividend of Bt 3.50/share (40% payout

vs. min. stated 25%) & 1st interim dividend of Bt. 1.50/share.

• Diversified sources of funds by issuing inaugural THB bond of Bt. 5,500 mn. (AA- Fitch’s) & Cross Currency Swap to US$.

• Successfully negotiated to reduce cost of existing domestic syndicated loans by ~ 1.375% or Bt. 72 mn./yr.

• Prepaid, repaid & refinanced loans, thus lowering interests by ~ Bt. 134 mn. in 2006.

8

TOP GroupTOP Group’’s Integrated Margin s Integrated Margin

4.65

10.62

2.70 1.51

6.62 4.96

1.82

1.57

2.862.19

2.090.24 0.641.530.81

0.87

0.38

0.54

Q1/06 Q2/06 Q3/06 Q4/06 FY/05 FY/06

TOP Acct GRM TPX TLB

7.00

12.56

4.57

7.69

Integrated Margin (US$/bbl)

6.37

-8%• TOP’s integrated refinery & petrochem

operations lead to increased and more stable margins.

• Group’s integrated margin stood at $7.69/bbl, 8% reduction vs. 25% drop of GRM.

8.39

PX – ULG 95

Plat

+42%

402 398

732575

371527403 399

733

576

Q1/06 Q2 Q3 Q4 FY/05 FY/06

(US$/T)

LB - HSFO 480 525623 687

579331

481 526624

688

Q1/06 Q2 Q3 Q4 FY/05 FY/06

+75% (US$/T)L/R

Crude GRMOil Products

-25%(US$/bbl)

2.701.51

6.624.96

10.62

4.65 Mrk. Mrg.Stock G/(L)

Q1/06 Q2 Q3 Q4 FY/05 FY/06

9

Financial HighlightsFinancial HighlightsEBITDA & Net Profit from Operation by Quarters Net Profit from Operation by Sectors – FY/05 & FY/06

Bt. 16,647 mn.Bt. 15,948 mn.

+4%

Refinery 61%

PX23%

LB10%

Power6%

FY/05

PX33%

Refinery 43%

LB13%

FY/06

Power11%

6,338 5,351 3,691 4,086

3,5316,878

9,737 5,993

6,2543,843

4,803

3,438

2,521 1,840

10,2328,126

EBITDA 05 EBITDA 06 NP fr. Oper. 05 NP fr. Oper. 06

Q4

Q3

Q2

Q1

(Bt. mn.)29,003

15,948

25,014

16,647

*Exclude other activities (Gain & Loss from Fixed Asset sold & Assets Impairment)

+4% YoY

-14%YoY

• Q4/06 - While GRM dropped significantly, subsidiaries (TPX, TLB & IPT) contributed strongly to Group’s bottom line, Net Profit from Operation in Q4/06 was Bt. 1,840 mn.

• FY/06 - Group's Net Profit from Operation increased marginally (by 4% YoY), thanks to strong GRM in Q2/06 and robust PX & LB margins, especially in 2H/06.

10

ContentsContents





11

Regional Oil Demand/Supply OutlookRegional Oil Demand/Supply Outlook

China1) 6,791 416 386 666 550 Japan 4,445 - - 56 - India 2,771 210 64 751 256 Taiwan 1,265 28 - - - Thailand 1,042 - - 115 - Pakistan 282 - 17 - - Vietnam 5 - - - 121 Others 6,966 - 88 - 25 Total 23,567 654 555 1,588 952

2009-10FKbd Jul'06 Exist ing 2006F 2007F 2008F

1)Include Monkolia 20 kbd in 2007 2)The Company

Regional Oil Demand Asia Pacific Refining Capacity Additions

China 6,492 4.3% 6,903 8,634 5.8%Japan 5,102 0.5% 5,073 5,018 (0.3%)India 2,333 1.3% 2,524 2,858 +4.1%South Korea 2,237 0.9% 2,212 2,314 +1.1%Thailand 970 2.3% 1,009 1,112 +2.5%Singapore 816 5.0% 866 1,105 +6.3%Others 5,207 1.1% 5,102 5,866 +3.6%Total Demand 23,157 2.0% 23,689 26,907 +3.2%Total Supply 22,964 0.8% 24,221 27,316 +3.1%

ME Sur/Def 1,305 1,502 1,786

2006F 2010F% Annual Growth

(2006-10F)Kbd 2005A % Growth

2)

26,90725,293

23,157 23,689 24,51226,364 27,316

22,964 24,221 24,826

2005A 2006F 2007F 2008F 2010F

Total Demand Total SupplyKbd

Source: FACTS, Fall 2006

Asia-Pacific Demand/Supply Balance

90%

• Delay of a few refinery projects in China and latest regional oil demand forecast support tight supply up to 2010.

• New refineries and expansions in M/E are needed to fulfill the gap, especially LPG, Naphtha and Fuel Oil.

12

Demand PX Total Capacity Operating Rate

0

5

10

15

20

25

30

35

40

00 01 02 03 04 05 06 07 08 09 1065

70

75

80

85

90

95

100% Op. Rate

Domestic PX Demand & Supply

Global Total PX Supply / Demand & Operating Rate

PX Business OutlookPX Business Outlook

0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

99 00 01 02 03 04 05 06 07 08 09

Mn. T.

10 11World Demand Growth Americas EuropeAfrica/Mideast Asia/Pacific

Source: CMAI & Company

0

400

800

1,200

1,600

2,000

04 05 06 07 08 09 10 11ATC Exxon TPX Demand

KTA

11

• Delay of a few Chinese & M/E PX projects (~2.4 mn. T/Y) from 2009 to 2010 will help extend high operating rate period till end 2009.

Global PX Supply & Demand GrowthMn. T.

• With new Indorama’s and expansion of Siam Mitsui’s PTA plants in 2006, Thailand remains net importer of PX till Q3/08 when new ATC II project will be completed.

13

LB Business OutlookLB Business Outlook

Regional Base Oil Supply & Demand

6,000

8,000

10,000

12,000

14,000

16,000

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11

Supply DemandKTA

• Delay in new capacity coming on-stream is the main reason for limited supply.

• Shortage of base oil is expected to continue in 2007 but could turn into balance after 2008 when new capacity additions commence operations.

Global Base Oil Market

2000 2005 2010 2015 2000 2005 2010 2015

Rest of the worldW. EuropeAsia PacificN. America

Demand by Region Demand by GroupGroup 3Group 2Group 1

• Global base oil demand is expected to grow by 2% CAGR until 2015. However, demand for Group I is forecasted to decline by 1% CAGR.

• Although demand for Group I declined, regional base oil supply of Group I is still tight due to permanent shutdown of some base oil plants in Australia & Philippines.Source: Kline, Shell Lubricants

90%

14

ContentsContents





15

TOP GroupTOP Group’’s Major CAPEX Programss Major CAPEX ProgramsProjects (US$ mn.) COD 2005 2006 2007 2008 2009 2010 2011 Total

CDU-3 Revamp

New Gas Turbine

SBM Expansion

TPX Expansion

Total

Q4/07

Q2/07

Q3/07

Q4/07

34 59 125

9 22 12

78 72

6 66 210

49 225 419 693

On-going218

43

150

282

16

Details & Progress of Investment ProjectsDetails & Progress of Investment ProjectsProjects Details Work Progress as of End-Jan’07

CDU-3 Revamp

Size : + 50 kbd (CDU Capacity)

Cost : US$ 218 mn. (US$ 4,360/bbl)

IRR : ~ 28% based on

US$ 4.5/bbl GRM

EPCM : Foster Wheeler

Exp. C.O.D. : Q4/07

Overall Work Progress: 58%

• Installation of new KMT unit scheduled to be completed in Mar’07.

• Substation, cooling tower and new crude furnace construction work is in progress.

Prior to commissioning of the expansion, CDU-3 will be shutdown for 2 months in Q4/07 for major turnaround & tie-in with the new facilities.

New Crude Furnace F- 2102 Foundation New Scot Unit FoundationUnit 2350 New KMT

17

Details & Progress of Investment ProjectsDetails & Progress of Investment Projects

Projects Details Work Progress as of End-Jan’07

New Gas Turbine

Size : 38 MW

Cost : US$ 43 mn.

EPC : CTCI

PMC : Foster Wheeler

Exp. C.O.D. : Q2/07


• Gas Turbine, Generator and Heat Recovery Steam Generator installed.

• Construction work is in progress.

Auxiliary / Local Control RoomGas Turbine and Generator Package Transformer

18


SBM Expansion

Size : 52” diameter * 14.5 km

long pipeline (to receivecrude fr. VLCC @ 2 mn. bbl)

Cost : US$ 150 mn.EPC : SAIPEM

PMC : Bechtel

Exp. C.O.D. : Q3/07


• Major equipment and 52” concrete coated steel pipe are scheduled to deliver to site as planned.

• On-shore construction work started in Jan’07.

• Subsea pipe laying will be started in Apr’07.

19


TPX Expansion

Size : +480 KTA Aromatics (add.)

+PX 141 KTA +MX 18 KTA

+BZ 177 KTA +Tol 144 KTA

Cost : US$ 282 mn.

EPC : Bechtel

PMC : Foster Wheeler

Exp. C.O.D. : Q4/07


• Foundation work for new units completed.

• Erection of storage tanks started in Dec’06.

• Piping installation outside battery limit is in progress.

Prior to commissioning of the expansion, TPX will be shutdown for 2 months in Q4/07 for major turnaround & tie-in with the new facilities.

H-1601/B- 4007 Demolition Work CompletedBig Mat. Foundation in the New Process Area Foundation work inside TATORAY

20

TOP GroupTOP Group’’s Major CAPEX Programss Major CAPEX ProgramsProjects (US$ mn.) COD 2005 2006 2007 2008 2009 2010 2011 Total

Specialties 2009

Euro IV2) 2011

CDU-3 Revamp

New Gas Turbine

SBM Expansion

TPX Expansion

Ethanol 0.5ML/Day

Ethanol 0.1ML/Day1)

730 MW IPP

Total

Q4/07

Q2/07

Q3/07

Q4/07

Q4/08

Q1/09

2011

34 59 125

9 22 12

78 72

6 66 210

92 58

4 8

10384 163

49 225 515 100111 213 153 1,366

On-going

Under Development

218

43

150

282

150

12

350

5050 100

45 16 61

1)Investment for 30% equity stake 2)Based on 50 ppm sulphur in gasoline & diesel Not yet confirmed on project’s holding stake

210.00 0.25 0.50 0.75 1.00 1.25 1.50

Sugar CaneCassava

TOPTOP’’ss Ethanol Project ProgressEthanol Project Progress

> 15%> 15%Project IRR

Finalize detailed feasibility studyPrepare project specifications & finalize detailed cost estimationCurrent Status

Q1/09Q4/08Expected COD

Sugar Cane (~0.5 mn. T/Y)Tapioca chips (~0.5 mn. T/Y)Feedstock

• Padaeng Industry (35%)• Mitr Phol Sugar Group (35%)Under discussionPartners with TOP

Maesod, Tak, ThailandCentral, ThailandLocationUS$ 150 mn.

0.5 mn. L/D

US$ 40 mn.Est. Investment

0.1 mn. L/DCapacityEthanol Plant

US$/L

Grain (EU)

Corn (China)*

Sugar Cane (TH)

Sugar Cane (Brazil) As of 2006

Source: Worldwatch Institute, except *Food & Economy Research Institute of Jilin Province

Cellulose

Comparison of Production Cost Analysis

Cassava (TH)

Corn (US)

0.3 0.4

0.40.3

• Import parity price from Brazil has been agreed to be used as domestic price which is currently traded at Bt. 19.3 per litre.

• With new Ethanol capacity come on stream in 2007, campaign for the use of Gasohol 91 will be promoted soon.

• Surplus production will have to be exported, if economical.

Latest Development

22

TOPTOP’’ss New IPP BiddingNew IPP BiddingTimetable for New IPP Bidding

Apr’07 Jul Oct Jan’08 Apr Jul Oct Oct’11 Oct’12

• Expected 3,000-4,000 MW capacity during 2011-2013.

• Unit and Plant Size Restriction: 800 and 1,600 MW, respectively.

• Annual capacity will be announced following finalization of the new load forecast and power development plan in early-2007.

RFP issued

Bid submission

Preferred bidders named

PPA signed

COD – Gas plants

COD – Coal plantsSource: IPP Solicitation Conference held by EPPO on 15 Dec’06

Key PoliciesDetails for New Bidding

Opportunity for TOP

TOP is in advantageous position given infrastructure available for additional 2*730 MW power plants:-• Land of 100 Rais (40 acres)• 28” natural gas / raw water pipeline• 230 KV transmission line and available diesel oil storage facilities for back up • EIA approval obtained

• State-owned enterprise (SOE) and any bidder that is directly or indirectly owned by SOE more than 50% is not allowed to bid.

• US$ indexation of Availability Payment is partially allowed if FX moves more than +/- 2 Baht around the reference rate.

• EIA approval & many Community Development Programs are required prior to PPA execution.

23

Details & Potential of Investment ProjectsDetails & Potential of Investment Projects

• To upgrade the existing base oil and by-products to higher value specialty products

• Improved Refining Margin

• Better Plant Utilization

• Potential Projects

• Market survey to be conducted 2 new products

TLB Strategy

Treated Distillate Aromatic Extract (TDAE) White Oil

Raw Material : Aromatic Extract

1st Phase : 16 kT/Y w/o major investment, start commercial production in Q2/07

2nd Phase : 36 kT/Y require investmentCost : US$ 25 mn.

Raw Material : Base Oil 150SN & 500 SN

Size : 50-75 kT/Y

Cost : US$ 36 mn.

24

ContentsContents





25

Improved OperationsImproved Operations

2005 & 2006

105 9682

7492 91

104 97

71 7792 92

FY/05

FY/06

(%)

TOP TPX TLB IPT TP TMTOPTOP TPXTPX TLBTLB IPTIPT TPTP TMTM

Refinery Utilization PX Production Lube Production Availability Utilization Utilization

2006Net Profit 7,497 5,666 2,322 1,573 318 30∆ YoY -2,099 +1,996 +724 +1,130 -154 +1

%∆ YoY -22% +54% +45% +255% -33% +3%

(Bt. mn.)

26

14,39518,168

14,39518,168

29,099

15,580 7,308

21,492

8,853 4,166

10,015 5,894

4,9765,842 2,600 2,600

1,170

1,170

FY/04 FY/05 FY/06 FY/04 FY/05 FY/06

JPY LoanTHB LoanUS$ LoanUS$ & THB Bonds

0

100

200

300

400

'07 '08 '09 '10 '11 '12 '13 '14 '15

Diversification & Cost ReductionDiversification & Cost ReductionDebt Portfolio

40,284

35,869

25,848

(60%)

(16%)

Bt. mn.

FY/06 Conso. TOP Only

84 / 16

49 / 51

60 / 40

6.3%

US$ / Bt. 90 / 10

Fixed / Float 51 / 49

Bond / Loan* 73 / 27

Cost of Debt 6.2%

TOP82%

IPT16%

TP2%

Consolidated Debt

TOP Group’’s Repayment Schedule

Bt. 30,452 mn.(-US$ 841 mn.)

$ 350 mn. Euro Bond

$ 72 mn. BHT Bond

As of 31 Dec’06

30,452 28,504

24,934

*THB Bond swapped into US Loan with floating interest rate

(24%)

Consolidated Repayment Schedule US$

Remarks: No long-term debts for TLB & TM , Numbers based on FX = Bt. 38/US$

31 30

148118

145

39

97

12

350

$ 72 mn. BHT Bond

• Group’s total debt at YE/06 reduced to Bt. 30,452 mn. due mainly to prepayment / repayment of LT loans, by Bt. 8,191 mn. in 2006.

• TPX has successfully secured new attractive LT loan in Q4/06 to finance expansion.

• TOP’s inaugural Bt. 5,500 THB bond helps smoothen repayment profile.

Consolidated TOP Only

27

Financial StrengthFinancial Strength

Treasury Policy

Net Debt / Equity <= 1.0x

Net Debt / EBITDA <= 2.0x

13.113.5

11.1

1.3 1.00.8

0.30.6

0.42004 2005 FY/06

ICR

Net Debt / EBITDA

Net Debt / Equity

(Times)

Financial RatiosBalance Sheet

40,28435,869

76,292

48,390

72,813

21,417

30,452Current Assets

Non-currentAssets

TotalEquities

Total Assets 115,427124,169

OtherLiabilities

LT Debt

Bt. mn.

FY/04 FY/05 FY/06

124,682

Dividend

• Dividend Policy : Not less than 25% of net profit after reserves, subject to investment plans.

Dividend Payments for FY/06 Result

Interim Dividend Bt. 1.50/sh.

Annual Dividend Bt. 3.50/sh.

Closing of Register Book : 21 Mar’07

Payment : 3 May’07

7.829.19

8.13

3.503.50

1.80

25%

40%45%

FY/04 FY/05 FY/06

EPS

TotalDividend

25% Min. Div. Payout

Bt./Sh.

Interim

Final

1.50

2.00

Payout 25% 40% 45%Yield 3.5% 5.5% 6.7%

28

Changes in Accounting StandardsChanges in Accounting Standards

Previous Standard Equity Method Last-in-First-out (LIFO)

New Standard Cost Method Weighted Average (WA)

RationaleTo comply with the Federation of Accounting Professions on Accounting Standard (FAP) announcement, dated 11 Oct 2006

• To comply with FAP, expected to be announced in 2007

• To better reflect company’s business & financial position

• In line with common industry practice

Implementation 1 Jan’07 with Retro Adjustment 1 Jan’07 with Retro Adjustment

Impact on F/S Company Alone(No impact on conso. F/S)

Company Alone & Consolidated F/S

Others

• No implication on financial ratios as per loan covenants and / or treasury policy levels

• No impact on ability to pay dividends

• Value of inventories better reflect prevailing prices

• Reduce volatility of stock gain/loss

Crude & Feedstock InventoryInvestment in Subsidiaries / Affiliates

29

Conclusions Conclusions

• 2006 was another excellent year for TOP:-• Utilization rate for TOP’s group was at a high level from group business

management and joint production planning.• Overall margin improvement program of TOP group (Refinery/TPX/TLB)

and cooperation within PTT group (PTT/TOP/IRPC/ARC/BCP) contributed to US$ +0.50/bbl GRM.

• All major expansion projects progressed as planned.• Our strong balance sheet provide greater opportunity for TOP group to

steadily grow its business while minimizing financial risk.

• 2007 will be another challenging year for TOP:-• To complete all major projects as planned and within budget.• To prepare and submit Bid for new IPP and be selected as a preferred

Bidder for at least one block of 730 MW (NG fired power plant).• To proceed Ethanol projects and become major Cassava based Ethanol

Producer.• To further optimize TOP group asset and strengthen cooperation within

PTT Petrochemical & Refining group.

30

AppendicesAppendices

31

Awards & Recognitions in 2006Awards & Recognitions in 2006

LT: Baa1 LT: BBB LT: AA-(tha) & ST: F1+(tha)

Highest Credit Ratings Among Pure-Play Refineries in the Region

Best Newly Listed Company & Most Improved Company in Asia

1,330th : World’s 2000 Leading Companies1 of 13 : Thai Listed Companies

33rd : Platts Top Companies in Asia 140th : Platts Top Companies Globally

Best Corporate Governance Report Award 2006

• 2nd: Largest Revenues ~ US$ 6 bn. (5% of SET) - 9M/06

• 4th: Largest Net Profit ~ US$ 0.4 bn. (4% of SET) - 9M/06

• 6th Most Liquidly Daily Traded ~ US$ 12 mn. (3% of SET) - 2006

• 8th: Largest Market Cap. ~ US$ 3 bn. (2% of SET) - 2006

One of the Most Popular Stocks on the SET

32

TOP RefineryTOP Refinery’’s Simplified Process Diagrams Simplified Process Diagram

CDU-1

CDU-2

CDU-3

TCU19,300

HCU-1

FCCU10,300

CCR-1

HDT-1

KMT2,400

HDS-1

LPG

ULG 95

JET

KEROSENE

GAS OIL

ULG 91

HCU-247,600

CCR-250,000

HVU-1

HVU-2

HVU-395,000

HDT-2

HDT-374,900

210,000

FUEL OIL

HDS-2HDS-374,000

MXMX*34,300

Crude

Distillation/SeparationConversion/UpgradingTreating

Long Residue

LVGO

Gas Oil

Kerosene

CDU Overhead

TC Residue

Short Residue

TC Waxy

Heavy Cycle Oil

HeavyNaphtha

Platformate

LPG

Light Plat

Light Cycle Oil

HC

Ker

o

Waxy

CC Gasoline

HC Gas Oil

ADIP

Isomerate

NGL72 RON

Mixed Xylene

50 RON

70 RONISOM21,500

Waxy

IN-LINE

BLEND

BATCH

BLEND

LightNaphtha

TC Kero/GO

95 RON

103 RON

89 RON

91 RON

Imported LR

*Sold to TPX in Apr’05

33

Hydrotreating-to-Refining Ratio2)

72% 48% 44% 33% 32% 32% 29% 22% 18% 16%

TOP Zhenhai Reliance S-Oil Formosa BPCL SingaporePetroleum

Esso Malaysia Indian Oil SK Corp

(%)

Higher conversion ratios result in higher refining margins

90% 80% 71% 63% 44% 42% 42% 28% 15% 10%

TOP* Reliance Formosa S-Oil SingaporePetroleum

Esso Malaysia SK Corp BPCL Zhenhai Indian Oil

Ability to meet more stringent product specifications at lower costs

+50 kbd after debottleneck in ‘07

Source: 2006 Oil and Gas Journal and *the Company1) Hydrocracking, catalytic cracking, thermal cracking, catalytic reforming and isomerization capacities divided by total crude distillation capacity2) Hydrocracking, hydrotreating and hydrodesulfurization capacities divided by total crude distillation capacity

*

Upgrading-to-Refining Ratio1)

70%

56%

+50 kbd after debottleneck in ‘07

(%)

One of the Most Complex Refineries in Asia PacificOne of the Most Complex Refineries in Asia Pacific-- Oil & Gas JournalOil & Gas Journal

34

Consistently Outstanding Performance - SGSI Worldwide Annual Benchmarking

2004Peer group comparisions

1st Tercile2nd Tercile3rd Tercile

• TOP performed very strongly when benchmarked against the global peers.• The company ranked in the first tercile for five out of eight benchmarks, evidenced of its highly efficient operations.• High Maintenance Effort and Personal Indices were offset by low labor costs.

Operating Cost Index

Shell Personnel Index (Based on Headcounts)

2005

CELCorrected Energy Loss

Maintenance Effort(Based on Headcounts)

Avg. Personnel Cost

Utilization

OperationalAvailability

AnnualizedMaintenanceCosts

36

35

Regional Oil Demand, Regional Oil Demand, Refinery Utilization and SpreadsRefinery Utilization and Spreads

90% 90%82% 83% 82% 81%

86%91%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

'99 '00 '01 '02 '03 '04 '05 '0640%

50%

60%

70%

80%

90%

100%

China S. Korea Japan India Others Utilization

Oil Demand (Kbd) Refinery Utilization

Source: FACTS, Fall 2006

0

2

4

6

8

'99 '00 '01 '02 '03 '04 '05 '060

20

40

60

80SGP Complex Refinery's GRM TOP's GRM Spot Dubai

GRM US$/bbl

Source: *Singapore Complex GRM & Dubai Spot Prices from Reuters

Gross Refinery Margins & Spot Dubai PricesDubai US$/bbl

Regional Oil Demand & Refinery Utilization

36

Volatile Oil Product / Crude Prices & Volatile Oil Product / Crude Prices & Spreads in FY/06 Spreads in FY/06

US$/bbl US$/bbl

Oil Product & Crude Prices (US$/bbl) Product - Dubai Spreads (US$/bbl)

-25

-15

-5

5

15

25

35US$/bbl US$/bbl

20

30

40

50

60

70

80

90

100

Q1/05 Q2 Q3 Q4 Q1/06 Q2 Q3 Q4

Diesel Gasoline

Dubai

Fuel Oil

Jet

ULG95-DB

FO-DB

Jet-DB

GO-DB

Q3/06 : Slump in ULG & FO prices & weaker GRM than expected

• Built-up crude stock in US & OECD countries,

• No hurricane as widely expected,

• End of US driving season,

• Easing geopolitical concerns in Iran and Nigeria.

Q4/06 : Depressed margin

• Mild winter in the region & US,

• Hefty US crude and heating oil stock,

• Very high Japanese kerosene stock due to warm weather,

• Limited gasoline demand from the US due to high stock.

Q1/06 : Soften GRM carried over from Q4/05

• Increase in crude prices faster than product prices due to geopolitical tension in Iran (nuclear enrichment program) & Nigeria (ethnic unrest),

• Weak heating oil demand due to late winter.

Q2/06 : Record high GRM

• Unprecedented high level of global & regional turnarounds,

• US phasing out of MTBE (summer ULG spec.),

• Very high gasoline imports to the US,

• Late winter in North Asia.

Q1/05 Q2 Q3 Q4 Q1/06 Q2 Q3 Q4

37

709 765 739 689 695 738 722

84% 89% 91% 91% 87% 87% 89%

0

200

400

600

800

1,000

1,200

1,400

4Q/05 1Q/06 2Q/06 Q3/06 Q4/06 FY/05 FY/06 0%

20%

40%

60%

80%

100%

Domestic Demand/Sales Net ExportPetrochem & Others Utilization Rate

Softening Domestic Demand in FY/06 Softening Domestic Demand in FY/06

(Intake)903921 944

Domestic Oil Demand / Refinery Intake (Kbd)

867940 928906

TOP RRC SPRC ESSO BCP

151 57

4889

Intake (Kbd) 234 157 156 169

IRPC

Utilization (%) 104105 108 79

Intake / Utilization by Major Refineries in FY/06 (Kbd)

• Impact of heavy flooding, slowdown in industrial & transportation sectors (Diesel) in Q3/06 and lower power consumption (FO) Q4/06 mainly caused oil demand in FY/06 to decline to 722 kbd (-2% YoY).

• Utilization dropped to 87% in Q4/06, mainly due to maintenance shutdown at TOP (Oct) & IRPC (Nov).

• Apart from being shutdown for almost 1 month, TOP maintained high utilization level at 105%.

• In FY/06, the country’s overall utilization was on avg. at 89%.

Oil Demand by Product Volume in FY/06 (Kbd)

93125

74

338

107124101 78

317

101

05 06 05 06 05 06 05 06 05 06

%∆ +9% 0% +5% -6% -6%

kbd

LPG Gasoline Jet/Kero Diesel FO

Source: DOEB, Ministry of Energy and Company *RRC’s total intake capacity 145 kbd from its Offering Memorandum

Utilization

38

11%14%

4%

15%7%

49%

TOPTOP’’ss Refinery Intake and Sales BreakdownRefinery Intake and Sales Breakdown

80% 81%

16%

10% 11% 14%

41% 38%43%

17% 19%11%

26% 26% 17%

6% 6% 14%14%

3%6%

TOP’s Crude Mix and Oil Product Yield TOP’s Customer Sales Breakdown

Middle

Heavy

LightLPGGasoline

Jet/KeroDiesel

PTT

50%

13%

10%4%

12%

11%

Fuel Oil

TPX

Shell / Caltex

Domestic Independents

BCP

Export = 14%

7% 7%

Export = 18%

FY/05 +3%

• In FY/06 TOP was able to process more local crude up to 16% at the expense of more expensive Far East crude.

• With highly complex & integrated facilities, up to 81% of crude came from M/E (heavy sour crude, i.e. Murban & Oman) , allowing the company to capitalize on sweet-sour crude differentials.

• Approx. 60% of TOP production was middle distillates to meet country’s demand & yield higher margin.

FY/05 FY/06

F/E

Local

M/E

• TOP increased export sales in FY/06 by 4% YoY as it switched to focus on jet export during Q3/06 to capture higher margin and to adjust with lower demand in Thailand.

Tapis(F/E)

Dubai (M/E)

FY/05 57.9

70.0

+12.1

49.3 12.8 18.3 14.7 -9.0

FY/06 61.5 11.7 19.1 15.2

∆

-13.1

+12.2 -1.1 +0.8 +0.5 -4.1

ULG 95 -Dubai

Jet -Dubai

Diesel -Dubai

Fuel Oil -Dubai

Oil Prices / Spreads – MOPS (US$/bbl)

14,351 Mn. L

FY/06

14,843 Mn. LThailand’s Oil Demand

39

TOP’s Gross Refining Margin - LIFO

GRM & GRM & TOPTOP’’ss PerformancePerformance

2,415 2,056 428

13,334

164 783

9,596

20,356

7,497

-425

105 10898 104 105

EBITDA Net Profit % Utilization(Bt. mn.)

TOP’s Performance

Q4/06 FY/06

%YoY %QoQ %YoY

EBITDA -82% -79% -34%

NP -359% -154% -22%

• In Q4/06, TOP’s utilization reduced to 98% due to planned shutdown of CDU-1 for 25 days in October. FY/06’s utilization however remained high at 105%.

• With slow winter demand in Q4/06, market GRM for TOP decreased to US$ 3.62/bbl.

• Inventory loss of US$ 2.11/bbl was realized in Q4/06 due to higher cost of crude purchased in the previous quarters. Accounting GRM therefore reduced to US$ 1.51/bbl for the period.

• FY/06, market GRM remained at US$ 4.92/bbl. With minimal stock gain, accounting GRM reduced YoYby 25% to US$ 4.96/bbl.

• As a result, Q4/06 reported a net loss of Bt. 425 mn. (-359% YoY). However, the company remained to report a net profits for FY/06 of Bt. 7,497 mn. (-22% YoY).

Q4/05 Q3/06 Q4/06 FY/05 FY/06

--22%22%

3.75

8.005.08 4.92

0.90

2.62

1.540.04

3.624.353.85

-0.85 -2.11-1.65

Market GRM Stock Gain/Loss

3.00 2.701.51

6.624.96

(US$/bbl)

Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 FY/05 FY/06

10.62

4.65

40

PX Margin & PX Margin & TPXTPX’’ss PerformancePerformance

-

200

400

600

800

1,000

1,200

1,400

1,600

(US$/Ton)

PX

MX

ULG 95

PX, MX and ULG 95 Spot Prices / Margins

527371

Q1/05 Q2 Q3 Q4 Q1/06 Q2 Q3 Q4

512 332 264 378 402 398 732 575 PX-ULG 95

(Bt. mn.)

TPX’s Performance

1,3542,110

1,419

4,376

6,1255,666

3,670

1,3231,965

1,299

94 9791

97 96

EBITDA Net Profit % Production

Q4/05 Q3/06 Q4/06 FY/05 FY/06

Q4/06 FY/06

%YoY %QoQ %YoY

EBITDA +5% -33% +40%

NP +2% -33% +54%

+54%

+54%

• In Q4/06, TPX’s utilization dropped to 97% due to shutdown for catalyst change for 5 days. FY/06’s utilization, however, remained high at 96%.

• PX – ULG 95 spread narrowed to US$ 575/T in Q4/06 which reflected softening PX price at a higher magnitude than its feedstock.

• FY/06, PX – ULG 95 spread rose YoY by 42% to US$ 527/T, reflecting regional tight supply as well as limited arbitrate from the US aggravated by MTBE phasing out.

• With significant improvement in performance, TPX totally repaid LT loans of Bt. 1,331 mn. in Oct’06, thus reducing interest by Bt. 134 mn.,

• As a result, TPX reported a net profit of Bt. 1,419 mn. in Q4/06 while it registered a record net profit for FY/06 of Bt. 5,666 mn. (+54% YoY).

41

LB Margin & LB Margin & TLBTLB’’ss PerformancePerformance500 SN & HSFO Spot Prices / Margins

(Bt. mn.)

TLB’s Performance

-

200

400

600

800

1,000

1,200

HSFO

500 SN

(US$/Ton)

296 282 318 429 480 525 623 687 500–HSFO

Q1/05 Q2 Q3 Q4 Q1/06 Q2 Q3 Q4

579331

2,768

8194

8471

82

EBITDA NP fr. Oper. % Production

278843 716

247697 572

2,3221,767

1,598

Q4/05 Q3/06 Q4/06 FY/05 FY/06

Q4/06 FY/06

%YoY %QoQ %YoY

EBITDA +158% -15% +57%

NP fr. Oper. +132% -18% +45%

*Exclude TLB’s impairment reversal of Bt. 2,894 mn. & gain from assets sold of Bt. 154 mn. in Q4/05 & FY/05

+45%+45%

• Utilization dropped to 84% in Q4/06 due to shutdown for a partial catalyst change in TOP’s HCU-1. Nonetheless, FY/06’s registered a record utilization at 94% due in to catalyst change during major turnaround in Q1/06 & HCU bottom processing.

• 500 SN – HSFO spread further strengthened to US$ 687/T in Q4 due to softening feedstock cost.

• 500 SN – HSFO spread for FY/06 rose to US$ 579/T (+75%), reflecting regional tight supply due to shutdown of regional lube base plants & widening gap between gasoil – fuel oil.

• TLB also enjoyed the benefit from synergy with TOP, e.g. reduction in fuel cost from using cheaper refinery fuel oil from TOP.

• Despite higher corporate income tax in Q4/06, TLB reported a record operating profit of Bt. 572 mn. Net profit for FY/06 of was Bt. 2,322 mn. (+45% YoY).

42

IPT, TP & TM PerformanceIPT, TP & TM Performance

11 20 15

81

7 230

82

-1

29

93 90 90 92 91

EBITDA NP fr. Oper. % Production

(Bt. mn.)

IPT’s Performance

538 763 710

1,996

274 563 577

1,5731,638

443

8798 91

77 74


Q4/05 Q3/06 Q4/06 FY/05 FY/06

+255%+255%

(Bt. mn.)

TP’s Performance

198 203 154

724

119 84 44

318

790

472

95 9789 92 92


Q4/05 Q3/06 Q4/06 FY/05 FY/06

--33%33%

(Bt. mn.)

TM’s Performance

+3%+3%

Q4/05 Q3/06 Q4/06 FY/05 FY/06

• IPT’s utilization in Q4/06 remained at 91%, resulting in FY/06 utilization of 74% following resuming full operation since Jun’06.

• With the remaining insurance claim revenue of Bt. 231 mn., IPT reported net profit of Bt 577 mn in Q4/06. Coupled with FX gain of Bt 523 mn, IPT’s net profit for FY/06 increased to Bt. 1,573 mn. (+255% YoY).

• TP’s utilization declined to 89% in Q4/06 due to 10-day shutdown for Hot Gas Path Inspection. FY/06 utilization remained at 92%. TP’s net profit reduced 33% YoY due to higher utility fuel cost & corporate income tax.

• Excluding gains from sales of 2 TM’s vessels amounting of Bt. 55 mn., net profit from operation increased by Bt. 1 mn. YoY.

*Exclude gain from 2 vessels sold of Bt. 55 mn. in FY/05

43

Consolidated Profit & Loss StatementConsolidated Profit & Loss Statement

(Bt. mn.) Q4/05 Q3/06 Q4/06 % YoY % QoQ FY/05 FY/06 % YoY

Sales Revenue 67,081 77,807 61,723 -8% -21% 249,111 279,109 +12%

EBITDA 4,803 5,993 3,438 -28% -43% 29,003 25,014 -14%

EBIT 3,270 4,054 1,636 -50% -60% 22,538 17,922 -20%

Interest Expenses (538) (481) (496) -8% +3% (2,152) (1,917) -11%

Net Profit from Operation 2,521 3,783 1,840 -27% -51% 15,948 16,647 +4%

Bt/US$ - ending 41.17 37.64 36.23 -12% -4% 41.17 36.23 -12%

Gain/(Loss) fr. Other Act.* 2,756 0 1 -100% 0% 2,805 (52) -102%

FX Gain/(Loss) 38 511 850 +2,137% +66% (1,032) 3,489 +438%

Tax Expense (249) (301) (150) -40% -50% (3,406) (2,847) -16%

Net Profit 5,277 3,783 1,841 -65% -51% 18,753 16,595 -12%

Thaioil 164 783 (425) -359% -154% 9,596 7,497 -22%

Subsidiaries 5,113 3,000 2,266 -56% -24% 9,157 9,098 -1%

EPS (Bt/sh.) 2.59 1.85 0.90 -65% -51% 9.19 8.13 -12%

Effective Tax Rate (%) 4% 7% 7% +3% 0% 15% 14% +1%

*Other Activities mean Gain & Loss from Fixed Asset sold & Assets Impairment.

44

Total TOP TPX TLB IPT TP TM

164

-425

2

-1

119274247

1,299

2,521

44577572

1,3231,840

Q4/05 Q4/06 Q4/05 Q4/06 Q4/05 Q4/06 Q4/05 Q4/06 Q4/05 Q4/06 Q4/05 Q4/06 Q4/05 Q4/06

(Bt. mn.)-27%

9,596

1,573318 30294724431,598

3,670

15,948

2,3225,666

7,497

16,647

(Bt. mn.)+4%

FY/05 FY/06 FY/05 FY/06 FY/05 FY/06 FY/05 FY/06 FY/05 FY/06 FY/05 FY/06 FY/05 FY/06

Financial Highlight Financial Highlight –– Net Profit from OperationNet Profit from Operation

PX33%

Refinery 43%

LB13%

FY/06

Power11%

Q4/06 PX63%LB

27%

Power30%

Q4/06 NP from OperationBt. 1,840 mn.

*Refinery -20%

FY/06 NP from OperationBt. 16,647 mn.

*Exclude other activities (Gain & Loss from Fixed Asset sold & Assets Impairment)

45

FY/05 FY/06 YoY

Utilization 92% 92% 0%

EBITDA 790 724 -8%

NP from Op. 472 318 -33%

TLB100%

(Bt. mn.)

100%

TPX

FY/05 FY/06 YoYProduction 97% 96% -1%PX-ULG95 ($/t) 371 527 +42%EBITDA 4,376 6,125 +40%NP from Op. 3,670 5,666 +54%

FY/05* FY/06 YoYProduction 71% 82% +11%500SN-HSFO ($/t) 331 579 +75% EBITDA 1,767 2,768 +57%NP from Op. 1,598 2,322 +45%

FY/05 FY/06 YoY

Utilization 92% 91% -1%

EBITDA 82 81 -1%

NP from Op. 84 30 +3%

100%

TM

FY/05 FY/06 YoY

Avail. 77% 74% -3%

EBITDA 1,638 1,996 +22%

NP from Op. 443 1,573+255%

55%

56%24%

TP

IPT

FY/05 FY/06 YoYUtilization 104% 105% +1%GRM ($/bbl) 6.62 4.96 -25%EBITDA 20,356 13,334 -34%NP from Op. 9,596 7,497 -22%

TOP ConsolidatedThaioil’s Group

FY/05* FY/06 YoY

29,003 25,014 -14%15,948 16,647 +4%

Performance Breakdown by CompanyPerformance Breakdown by Company

*Net Profit form Operation excluded other activities (Gain & Loss from Fixed Asset sold & Assets Impairment)

46

Cash Flow FY/05 & FY/06Cash Flow FY/05 & FY/06

(Bt. mn.) FY05 / FY/06

Operating Cash Flow 20,404 17,911

Net income & non-cash adj. 28,946

(8,542)

26,072

Change in assets & liabilities (8,161)+

Financing (12,113) (14,342)

Repayment of LT loans (30,586)

24,384

(3,799)

(2,112)

(9,670)

Proceed from Loan & Notes 7,978

Dividend payment (10,358)

Interest payment (2,292)

+

+ =

Free Cash Flow

16,697 9,616

CAPEX & Investment (3,707) (8,295)

CAPEX (PP&E) (4,377)

670Other investment

(8,278)

(17)

Beginning Cash

6,667 11,252 (4,726)4,584

Net Increase in Cash

6,52611,251

Ending Cash

Hongkong: 1-2 March 2007 Singapore: 5-6 March 2007

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Transcript of Hongkong: 1-2 March 2007 Singapore: 5-6 March 2007