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PTT Chemical Public Company LimitedAnalyst Briefing Presentation
2Q11 Operating Results
1
PTT Chemical Public Company Limited
Disclaimer
The information contained in our presentation is intended solely for your personal reference only. In addition, such information may contain projections and forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These views are based on assumptions subject to various risks. No assurance is given that future events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Actual results may differ materially from those projected.
2
PTT Chemical Public Company Limited
Agenda
PTTCH 2Q11 Highlights
Market Overview
2Q11 Performance
Conclusions
3
PTT Chemical Public Company Limited
Agenda
PTTCH 2Q11 Highlights
Market Overview
2Q11 Performance
Conclusions
4
Market
PTT Chemical Public Company Limited
2Q11 Highlights
5
Operations & Business
Higher YoY production volumes from COD of new plants i.e. PTTPE cracker (1 Dec. 10), HDPE (I1 & Expansion) (1 Jan. 11), and
LDPE (1 Feb. 11) coupled with olefins plant I-1 and oleflex plants were shutdown for maintenance in the same period of last year
Some plants were shutdown for maintenance in this quarter; LLDPE (29 days) and MEG (30 days)
PTT’s No.1 gas pipeline’s leakage had impact on the Company’s production for only 5 days in 2Q11 (26-30 June). It also has slightly
impact in 3Q11 (1-12 July) as PTTPE has been shutdown from July 13-August 23 for turnaround during warranty period
Baht currency was depreciated further YoY, resulted in higher FX loss in 2Q11
Naphtha (MOPS) 977 (+40%) Ethylene (SEA) 1,291 (+19%) HDPE (SEA) 1,389 (+17%)
LLDPE (SEA) 1,380 (+12%) LDPE (SEA) 1,683 (+22%) MEG (SEA) 1,300 (+26%)
PE prices softened at the end of 2Q11 from de-stocking season, which led to weaker PE prices in June
A closure of Nanya’s MEG plants (1.9 MT) due to fire incidents at Formosa Group’s Mailiao Petrochemical Complex in May caused
MEG price rose to 1,300 USD/ton in 2Q11
Crude oil prices rose YoY from 78 USD/bbl in 2Q10 to 111 USD/bbl in 2Q11 due to higher demand, mainly from emerging markets,
ME political unrest, and OPEC decision not to uplift production. This led to a YoY rise in overall petrochemical product prices (cost-
push effect). 2Q11 Product Prices
PTT Chemical Public Company Limited6
Highlights
24 Feb
BoD meeting to approve amalgamation
Feb – Mar
Merged
Co.
Joint analyst Meeting Investor presentation
BoDapproval
Roadshow
AGM
JointShareholders
MeetingMoC SET
AGM to approve amalgamation
creditor objectionPeriod
21 Apr May-June
“Within 21st of October”
CreditorsObjection Period
Joint Shareholders Meeting to approve establishment of new company
Registration with Ministry of Commerce
Merger completed and New company listed to SET
AGM
Merged Co. Progress
Joint EGM shall be held within 6 months after getting an approval for amalgamation from shareholders on 21 April 2011 (AGM); thus
merger should be completed by 21 October 2011.
PTTCH’s creditors objection period and all consents were completed in June
9 integration teams has currently been working on workflow and culture alignment to be prepared for Day 1
PTT Chemical Public Company Limited7
Merged Co. Strategic Direction
“ To be a Leading Chemical Company in Asia Pacific ”
PTT Chemical Public Company Limited
Planned Shutdown
Propane feedstock supply problems
2010 2011
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Plant I1 – Cracker 39 days
Plant I1 – Oleflex 59 days
44 days35 days
(21 June-25 July)
Plant I4-1 10 days* 41 days
Plant I4-2 12 days*
PTTPE – Cracker 42 days
(13 July-23 Aug)
HDPE-I 1 12 days 23 days
(20 July-12 Aug)
BPE (250 KT) 21 days
BPE Exp. (250 KT) 16 days
(16-31 July)
LLDPE (400 KT) 29 days 11 days
(1-8 Aug, 13-15 Aug)
TOCGC 18 days 43 days
1 June-13 July
Turnaround for 1-Year Warranty Period
Cleaning
Planned shutdown for maintenance
Cleaning and catalyst changing
Turnaround
8
* From GLOW’s electricity plants’ blackout
PTT Chemical Public Company Limited
Agenda
PTTCH 2Q11 Highlights
Market Overview
2Q11 Performance
Conclusions
9
PTT Chemical Public Company Limited10
PTT Chemical Public Company Limited11
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
America Europe Middle East China Other Asia Additional demand
Unit : KMT
2009 2010 2011 2012 2013 2014 2015
America5% Middle
East31%
Europe5%
China33%
Other Asia26%
Uncertainty of New Ethylene Capacity and Closure
Source : CMAI and PTTCH
Delay from plans
Morvarid PC Iran500 KTANov-09 to Jan-10
Sharq Saudi.1,200 KTAQ1-09 to Dec-09
Indian Oil India857 KMTQ4-09 to Q2-10
Borouge Qatar1,400 KMTQ2-10 to Q3-10
Ilam Iran458 KMTQ1-12 to Q1-15
ZRCC China1,000 KMTQ1-10 to Q2-10
SINOPEC Wuhan China800 KMTQ1-11 to Feb-13
Saudi Polymers Saudi1,200 KMTQ3-11 to Q1-12
Shanghai PC China600 KMTQ3-12 to Q1-14
Effective Net Supply
Additional (2011-2015) (Unit : MMT)
Supply Demand22.83 30.64
ExxonMobil Singapore1,000 KMTQ3-11 to Q3-12
PTT Chemical Public Company Limited12
Company Country KTA Q2-2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012
LG Chem S. Korea 140
BASF/Yangzi PC China 150
Zhongyuan PC China 100
Saudi Polymers Saudi Arabia 1,200
Samsung Total PC S. Korea 150
Fushun PC China 800
ExxonMobil Singapore 1,000
Top New capacity during 2011 - 2012: Saudi Arabia 1,200 KTAChina 1,050 KTASingapore 1,000 KTA S. Korea 290 KTA
Planned Updated
Q1-10
Q3-12
Q1-11
Source : CMAI
Asia and ME Ethylene New Capacity
Year 2011 Year 2012
New Capacity MT 0.39 3.15
Effective Add. Capacity MT 0.17 2.38
PTT Chemical Public Company Limited13
Q - Q - Q - Q - Q - Q - Q - Q - Q - Q - Q - Q -
Ethylene Spread Propylene Spread
Q2-10 Q2-11 Diff 2010 2011EDiff
(10-11)
Spread (As of Aug-11)
Ethylene 389 314 -19% 363 276 -24%
Propylene 439 510 +16% 419 492 +17%
Olefins Price Movement & Outlook
Q2-11 situation (Y-o-Y): Olefins spread was inconsistent due to Supply side: 1. Higher feedstock cost.
2. Planned and unplanned shutdown of crackers /propylene on purpose plants in the region and Middle East.
Demand side: 1. Sluggish demand as resistance from downstream producers due to high feedstock cost and tighten monetary policy in China especially PE producers.2. However; demand improved higher from MEG producers.
Year 2011 Outlook: Olefins spread will be effected by
Supply side: 1. Uncertainty in energy and feedstock cost.
2. Planned turnaround in Asia and ME.
Demand side: Debts problem in Europe and US will pressure global
economic recovery and F/S price.
Ethylene SEA Propylene SEA
Naphtha MOPS
Price forecast by CMAI as of 5 Aug 2011
PTT Chemical Public Company Limited14
America2%
Middle East41%
Europe2%
China32%
Other Asia23%
PTT Chemical Public Company Limited15
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
America Europe Middle East China Other Asia Additional demand
Unit : KMT
2009 2010 2011 2012 2013 2014 2015
Delay from plans
Additional (2011-2015) (Unit : MMT)
Supply Demand8.60 10.68
Effective Net Supply
Fujian Ref. China 400 KTAQ1-09 to Sep-09
Dushanzi PC China600 KTAApr-09 to Sep-09
Tianjin PC China300 KTAQ4-09 to Jan-10
Borouge Qatar360 KMTQ2-10 to Q3-10
ZRCC China225 KMTQ1-10 to Q2-10
Indian Oil India475 KTAQ4-09 to Jun-10
SINOPEC WuhanChina300 KMTQ1-11 to Feb-13
Saudi PolymersSaudi.1,100 KMTQ3-11 to Q1-12
Sichuan PC China300 KMTQ3-12 to Q1-14
ExxonMobil Singapore325 KMTQ3-11 to Q3-12
Uncertainty of New HDPE Capacity and Closure
Source : CMAI and PTTCH
PTT Chemical Public Company Limited16
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
America Europe Middle East China Other Asia
Unit : KMT
2009 2010 2011 2012 2013 2014 2015
Delay from plans
Additional (2011-2015) (Unit : MMT)
Supply Demand6.19 7.53
Effective Net Supply
Fujian Ref. China 400 KTAApr-09 to Sep-09
Dushanzi PC China300 KTAApr-09 to Sep-09
Tianjin PC China300 KTAQ4-09 to Jan-10
Borouge Qatar180 KMTQ2-10 to Q3-10
ZRCC China225 KMTQ1-10 to Q2-10
Indian Oil India175 KTAQ4-09 to Q3-10
SINOPEC WuhanChina300 KMTQ1-11 to Feb-13
Shanghai PC China125 KMTQ3-12 to Q1-14
ExxonMobil Singapore975 KMTQ1-11 to Q3-12
Daqing PC China275 KMTQ2-11 to Q2-13
Middle East11%
China27%
Other Asia61%
Uncertainty of New LLDPE Capacity and Closure
Source : CMAI and PTTCH
PTT Chemical Public Company Limited17
-500
0
500
1,000
1,500
2,000
America Europe Middle East China Other Asia
Unit : KMT
2009 2010 2011 2012 2013 2014 2015
Delay from plans
Additional (2011-2015) (Unit : MMT)
Supply Demand3.19 3.47
Effective Net Supply
Amir Kabir PC Iran300 KTAQ4-09 to Q4-10
America2%
Middle East46%Europe
21%
China23%
Other Asia8%
Uncertainty of New LDPE Capacity and Closure
Source : CMAI and PTTCH
PTT Chemical Public Company Limited18
Company Country KTA Q2-2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012
HDPE New Capacity
Kayan Saudi Arabia 400
Chandra Asri PC Indonesia 50
Saudi Polymers Saudi Arabia 1,100
Fushun PC China 575
Honam PC S. Korea 210
ExxonMobil Singapore 325
LLDPE New Capacity
Chandra Asri PC Indonesia 50
Zhongyuan PC China 60
Evolue Japan Japan 40
Fushun PC China 225
ExxonMobil Singapore 650
ExxonMobil Singapore 325
LDPE New Capacity
QAPCO Qatar 300
Hanwha Chemical S. Korea 30
Asia and ME Polyethylene New Capacity
Company Country KTA Q2-2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012
HDPE New Capacity
Kayan Saudi Arabia 400
Chandra Asri PC Indonesia 50
Saudi Polymers Saudi Arabia 1,100
Fushun PC China 575
Honam PC S. Korea 210
ExxonMobil Singapore 325
LLDPE New Capacity
Chandra Asri PC Indonesia 50
Zhongyuan PC China 60
Evolue Japan Japan 40
Fushun PC China 225
ExxonMobil Singapore 650
ExxonMobil Singapore 325
LDPE New Capacity
QAPCO Qatar 300
Hanwha Chemical S. Korea 30
Q1-11
Q3-12
Q3-12
Q1-10
Q3-12
Q3-12
Q1-10
Top New capacity during 2011 - 2012:Saudi Arabia 1,500 KTASingapore 1,300 KTAChina 860 KTAQatar 300 KTAS. Korea 240 KTA
Source : CMAI
Year 2011 Year 2012
HDPE LLDPE LDPE PE HDPE LLDPE LDPE PE
New Capacity MT 0.45 0.11 - 0.56 2.21 1.24 0.33 3.78
Effective Add. Capacity MT 0.425 0.04 - 0.465 1.751 0.678 0.33 2.759
PTT Chemical Public Company Limited19
Q - Q - Q - Q - Q - Q - Q - Q - Q - Q - Q - Q -
HDPE Spread LDPE Spread LLDPE Spread
Q2-10 Q2-11 Diff 2010 2011EDiff
(10-11)
Spread (As of Aug 11)
HDPE 99 99 - 148 168 +14%
LDPE 307 393 +28% 377 440 +17%
LLDPE 175 89 -49% 214 177 -17%
Polyethylene Price Movement & Outlook
Q2-11 situation (Y-o-Y):
PE spread was unstable due to
Supply Side: 1. Operational issues of some plants in Asia and Middle East.2. High energy and ethylene feedstock prices.
Demand Side: 1. Boosting up demand from restocking season for higher demand of plastic producers
2. Negative impact on demand was from the tightened monetary policy in China to cool down their economy.
Year 2011 Outlook: Supply Side: 1. Volatile crude and ethylene prices
2. Planned turnaround in Asia and Middle East.3. No new capacity brought on-steam.
Demand Side: Demand is expected to improve due to high season in 4Q. However, concerns about debt problems in Europe and US coupled with higher inflation in many countries and high energy prices may have negative impact on demand.
HDPE SEA
Ethylene SEA
Price forecast by CMAI as of 5 Aug 2011
LDPE SEA
LLDPE SEA
PTT Chemical Public Company Limited20
PTT Chemical Public Company Limited21
-1,000
0
1,000
2,000
3,000
4,000
5,000
Europe India Middle East China
Unit : KMT
2009 2010 2011 2012 2013 2014 2015
Additional (2011-2015) (Unit : MMT)
Supply Demand3.60 7.49
Effective Net Supply
Ahead from plans
Delay from plans
Yansab Saudi.800 KTAJul-09 to Aug-09
Sharq Saudi.800 KTADec-09 to Aug-09
Shell Singapore750 KMTQ1-10 to Nov-09
Tongliao Jinmei China200 KTADec-09 to Apr-10
Sinopec Tianjin China420 KTADec-09 to Feb-10
Liaoning Huajin China220 KMTJan-10 to Mar-10
Sinopec ZhenhaiChina650 KMTJan-10 to Mar-10
Middle East39%
India6%
China58%
Uncertainty of New MEG Capacity and Closure
Source : CMAI and PTTCH
Europe
PTT Chemical Public Company Limited22
Company Country KTA Q2-2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012
Global Biochem China 80
Saudi Kayan Saudi Arabia 15
PetroChina China 380
Yangzi PC China 60
Global Biochem China 80
Asia and ME MEG New Capacity
Source : PCI
Top New capacity during 2011 - 2012:China 600 KTASaudi Arabia 15 KTA
Source : PCI
Planned Updated
Year 2011 Year 2012
New Capacity MT 0.08 0.535
Effective Add. Capacity MT 0.047 0.502
PTT Chemical Public Company Limited23
MEG Price Movement & Outlook
Q - Q - Q - Q - Q - Q - Q - Q - Q - Q - Q - Q -
Spread MEG - . Ethylene
Ethylene SEA
Q2-10 Q2-11 Diff 2010 2011Diff
(10-11)
Spread (As of Aug-11)
MEG 124 340 +174% 208 412 +98%
Q2-11 situation (Y-o-Y): Supply Side: 1. No new supply from Asia and Middle East.
2. Planned and unplanned shutdown in Asia and Middle East.3. Increase in ethylene feedstock prices.
Demand Side: 1. Strong demand from downstream polyester and PET in China
Year 2011 Outlook: MEG spread is pressured by Supply Side: 1. Planned turnaround in Asia and Middle East.
2. Volatile in energy and feedstock cost.
3. Minimal MEG capacity will be added Demand Side: 1. Tight credit control measure from China government may
impact on demand.2. High seasonal demand of Polyester and PET business in 2nd half of year.
MEG CMP
Ethylene SEA
Price forecast by CMAI as of 5 Aug 2011
PTT Chemical Public Company Limited24
PTT Chemical Public Company Limited25
Oleochemicals Price Movement & Outlook
Q - Q - Q - Q - Q - Q - Q - Q -
Spread FA to . CPKO CPKO Fatty Alcohol
Q - Q - Q - Q - Q - Q - Q - Q - Q - Q - Q - Q -
Spread ME to . CPO CPO Methyl Ester
Methyl Ester (Local) Pricing
Fatty Alcohol Pricing
Un
it :
$/M
TU
nit
: $
/MT
Q2-10 Q2-11 Diff 2010 2011Diff
(10-11)
Spread (As of Aug11)
Methyl Ester 260 222 -15% 232 255 +10%
Fatty Alcohol * 331 637 +92% 348 426 +15%
Source : PTT Chemical
PTT Chemical Public Company Limited26
Methyl Ester (ME) : 2011 Domestic Market (Y-o-Y)• 2011’s overall spread is expected to increase from 2010 due to rising in CPO price
• Spread of 2Q11 was lower YoY, mainly from the new ME price formula started in 3Q10. The new ME price formula caused the ME
price lower than the old formula around 1 – 1.5 B/litre (30 - 40 USD/Ton)
• Price and Spread of ME in 2H11 is expected to be lower than 1H11 as CPO production will increase and be able to cover demand
Fatty Alcohol : 2011 International Market (Y-o-Y)
• Fatty Alcohol price , especially Fatty Alcohol C12-C14, has been increased significantly since the end of 2010 due to the increasing
demand in Oleochemical products and high feedstock cost.
• However, price of short chain fatty alcohol and some cuts of long chain fatty alcohol dragged the total fatty alcohol price due to the
demand slowdown in some end used applications.
• In 2Q11, spread for FA reached 637 USD/Ton, the highest level in the past few years due to the strong demand in Oleochemicals
especially on Mid-cut Fatty Alcohol C12-C14. It is expected that FA prices will be soften in 2H11 following by lower feedstock cost.
However, overall spread in 2011 will be improved from 2010.
Oleochemicals Price Movement & Outlook
PTT Chemical Public Company Limited27
2011Asia + ME Effective
AdditionalCapacity (KMT)
2011Asia + MEAdditional Demand
(KMT)
2011Surplus
PTTCH Portfolio(% by Capacity)
Price Spread ($/MT)
2010(Actual)
2011(Forecast)
Olefins :EthylenePropylene
3,2974,779
4,3073,024
-1,0101,755
57%47%10%
Olefins SEA – MOPS
363 419
276492
Polymers :HDPELLDPELDPE
1,430540270
1,3111,029530
119-489-260
30%16%8%6%
PE SEA – Ethylene SEA
148 214377
168177440
EO Based : MEG 758 1,207 -449
8%8%
MEG ASP – 63% Ethylene SEA
208 412
Oleochemical :ME
FA
5%4%
1%
ME – (CPO x 1.02)
232 255
FA – (CPKO x 1.20)348 426
2011 Margin Summary
PTT Chemical Public Company Limited
Agenda
PTTCH 2Q11 Highlights
Market Overview
2Q11 Performance
Conclusions
28
417,087
612,408
80%
85%
75%
78%
81%
84%
87%
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2Q10 2Q11
Olefins
PTT Chemical Public Company Limited
YoY Production Volumes & U-Rates
tons tonstons
%
106,075
205,437
85%
103%
0%
20%
40%
60%
80%
100%
120%
0
50,000
100,000
150,000
200,000
250,000
2Q10 2Q11
HDPE U-Rate
55,567
59,612
56%
60%
54%
55%
56%
57%
58%
59%
60%
61%
53,000
54,000
55,000
56,000
57,000
58,000
59,000
60,000
2Q10 2Q11
LLDPE U-Rate
82,039
47,041
83%
48%
-
10
20
30
40
50
60
70
80
90
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2Q10 2Q11
MEG U-Rate
tons tons
Overall production volumes and utilization rates improved YoY except MEG due to plant shutdown for maintenance for 30 days in 2Q11
0
61,244
82%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2Q10 2Q11
LDPE U-Rate
Note: 2Q10 based on olefins capacity of 1.863 MTA2Q11 based on olefins capacity of 2.888 MTA
Note: 2Q10 based on HDPE capacity of 500 KTA2Q11 based on HDPE capacity of 800 KTA
Note: 2Q10 and 2Q11 based on MEG capacity of 395 KTA
29
Olefins HDPE LLDPE
LDPE MEG
209,837
205,437
105%
103%
102%
103%
104%
105%
106%
200,000
205,000
210,000
215,000
1Q11 2Q11
HDPE U-Rate
PTT Chemical Public Company Limited
603,874
612,408
84%85%
70%72%74%76%78%80%82%84%86%88%90%
595,000
600,000
605,000
610,000
615,000
1Q11 2Q11Olefins U-Rate
QoQ Production Volumes & U-Rates
tonstons
89,040
59,612
89%
60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
1Q11 2Q11
LLDPE U-Rate
tons
51,571
61,24469%
82%
60%
65%
70%
75%
80%
85%
46,000
48,000
50,000
52,000
54,000
56,000
58,000
60,000
62,000
1Q11 2Q11
LDPE U-Rate
75,957
47,041
77%
48%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
1Q11 2Q11
MEG U-Rate
30
Olefins HDPE LLDPE
LDPE MEG
PTT Chemical Public Company Limited
18% 15%9%
18% 18% 17% 16%7%
19% 18% 17%22% 18% 14%
82% 85%91%
82% 82% 83% 84%93%
81% 82% 83% 78% 82% 86%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1Q/08 2Q/08 3Q/08 4Q/08 1Q/09 2Q/09 3Q/09 4Q/09 1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11
583 609 584 379 623 648 663 626 443 571 460 562 860 858
Naphtha portion was 14% in 2Q11 due to PTTPE’s cracker COD in Feb; therefore, more natural gas was used.
Feedstock Used
31
Olefins 239,367 190,110 191,986 26% 25%
HDPE 203,046 96,864 198,932 110% 2%
LLDPE 64,171 39,097 77,779 56% (21%)
LDPE 50,331 n.a. 37,953 n.a. 33%
MEG 54,425 82,599 72,724 (34%) (25%)
TOTAL 611,340 408,670 579,374 50% 6%
PTT Chemical Public Company Limited
Sales Volumes
Sales Volumes increased due to higher productionvolumes mainly from COD of new plants; however, MEGsales volumes decreased YoY and QoQ and LLDPEdecreased QoQ due to plant shutdowns for maintenance
32
2Q/11 2Q/10 1Q/11% Change
YoY QoQ
% Change
PTT Chemical Public Company Limited
Product Prices and Spreads
Product prices improved YoY due to global economyrecovery and higher crude oil price; while some slightlydecreased QoQ due to de-stocking season.
Spread; however, mostly decreased YoY and QoQ dueto higher naphtha cost
33
Unit: $/ton 2Q11 2Q10 1Q11 % Change % Change
YoY QoQ
Crude (Dubai) $/BBL 111 78 100 42% 11%
Naphtha (MOPS) 977 699 903 40% 8%
Ethylene (SEA) 1,291 1,088 1,238 19% 4%
HDPE (SEA) 1,389 1,187 1,372 17% 1%
LLDPE (SEA) 1,380 1,227 1,423 12% (3%)
LDPE (SEA) 1,683 1,383 1,731 22% (3%)
MEG (SEA) 1,300 1,030 1,250 26% 4%
Ethylene-Naphtha 314 389 335 (19%) (6%)
HPDE-Naphtha 412 488 469 (16%) (12%)
LLDPE-Naphtha 403 528 520 (24%) (23%)
LDPE-Naphtha 706 684 828 3% (15%)
MEG-0.63 Ethylene 487 345 470 41% 4%
PTT Chemical Public Company Limited
Sales Revenues Structure
Improving YoY Sales Revenues from 23,993 MB to 38,192 MB due mainly to higher sales volumes
Base Chemicals Polymers Performance Oleochemicals Inter. Business
23,993 MB
38,192 MB
2Q10 2Q1137%
27%
12%
8%
16%
34%
38%
8%
7%
13%
2Q10 2Q11
34
PTT Chemical Public Company Limited
Consolidated Financial Performances (YoY)
35
M.Baht % M.Baht % M.Baht % Change
Sales Revenue 38,192 100% 23,993 100% 14,199 59%
Feedstock Cost (23,735) (62%) (15,846) (66%) 7,889 50%
Gross Margin 14,457 38% 8,147 34% 6,310 77%
Processing Cost (4,587) (12%) (3,264) (14%) 1,323 41%
Other Revenue 899 2% 663 3% 236 36%
S&A Expenses (1,620) (4%) (1,324) (5%) 296 22%
EBITDA 9,148 24% 4,222 18% 4,927 117%
Depre.&Amort. (1,791) (5%) (1,284) (5%) 507 40%
EBIT 7,357 19% 2,938 12% 4,419 150%
Financing Expenses (479) (1%) (515) (2%) (36) (7%)
FX and Derivative Gain(Loss) (310) (1%) (48) 0% 262 546%
Share of profit of associates 571 1% 388 2% 183 47%
Profit attributable to Non-controlling interest (143) 0% (89) 0% 54 61%
Corporate Tax (564) (1%) (375) (2%) 189 50%
Net Profits 6,432 17% 2,299 10% 4,134 180%
EPS (Bt./Sh.) 4.24 1.53 2.71 177%
Unit: Mil. Baht 2Q/11 2Q/10 YoY
PTT Chemical Public Company Limited
Consolidated Financial Performances (QoQ)
36
M.Baht % M.Baht % M.Baht % Change
Sales Revenue 38,192 100% 35,373 100% 2,819 8%
Feedstock Cost (23,735) (62%) (22,049) (62%) 1,686 8%
Gross Margin 14,457 38% 13,324 38% 1,133 9%
Processing Cost (4,587) (12%) (3,902) (11%) 685 18%
Other Revenue 899 2% 743 2% 156 21%
S&A Expenses (1,620) (4%) (1,353) (4%) 267 20%
EBITDA 9,148 24% 8,812 25% 336 4%
Depre.&Amort. (1,791) (5%) (1,849) (5%) (58) (3%)
EBIT 7,357 19% 6,963 20% 394 6%
Financing Expenses (479) (1%) (513) (1%) (34) (7%)
FX and Derivative Gain(Loss) (310) (1%) (107) 0% 203 189%
Share of profit of associates 571 1% 255 1% 316 123%
Profit attributable to Non-controlling interest (143) 0% (118) 0% 24 21%
Corporate Tax (564) (1%) (301) (1%) 262 87%
Net Profits 6,432 17% 6,178 17% 254 4%
EPS (Bt./Sh.) 4.24 4.08 0.16 4%
Unit: Mil. Baht 2Q/11 1Q/11 QoQ
PTT Chemical Public Company Limited37
USD Liabilities
1 Engaged in 4Q072 Engaged in 1Q113 Engaged in 2Q11
Type of Liabilities Amount (MUSD)
1. USD Debentures 300
2. Cross Currency Swap 142
3. Forward Contract (Phase 1) 4002
1
4. Forward Contract (Phase 2) 1803
Total 1,022
Note: PTTCH’s hedging policy is approximately 80% of P2F Margin
PTT Chemical Public Company Limited
16,773 19,152 22,035
111,063 109,240 107,143
21,365 24,831 30,471
11,050 14,838 21,280
101,093 107,377 117,864
44,472 45,266 45,679
14,686 15,418 17,386
Unit: Million Baht
2009 2010 2Q11
180,929
160,251
168,056
Total Liabilities & Shareholders' Equity
Cash
CA
PP&E
Non-CA
Equities
Loans
Other
Liability
38
*
* PTTCH’s cash on hand was 17,451 MB while the rest was from subsidiaries
PTT Chemical Public Company Limited
14,668 14,782
29,138 28,628
2010 Q2 2011
THB USD&ForeignUnit : Bt mn
30 Jun 11 - Debt Structure & Cost
• Cost of long term debts ~ 5.1% (Include W/H Tax)
• % Total fixed-rate long term debt ~ 72%
(THB fixed-rate debt ~ 61%, Int. ~ 5.5%,
USD fixed-rate debt ~ 95%, Int. ~ 5.7%)
• Average Loan Life 5.4 Years
Consolidated L/T Debts ~ Bt 43.41 bnRepayment Schedule
(After Refinancing Drawn 2013-2015)
Conso. Debt Profile: Cost Control & Risk Mgt.
-0.9%
43,806 43,410
(67%)
(33%)
(66%)
(34%)
39
Unit : Bt mn
1.16
2.20
1.74
0.96
0
0.5
1
1.5
2
2.5
2008 2009 2010 2Q/2011
PTT Chemical Public Company Limited
Consolidated Key Financial Ratios
Net Debt/ EBITDA Net Debt/ Equity
Return on Asset Return on Equity
0.24
0.34
0.27
0.21
0.15
0.2
0.25
0.3
0.35
0.4
2008 2009 2010 2Q/2011
8.21
4.24
6.24
10.12
2
4
6
8
10
12
2008 2009 2010 2Q/2011
12.32
6.73
9.81
15.66
4
6
8
10
12
14
16
18
2008 2009 2010 2Q/2011
40
PTT Chemical Public Company Limited
Agenda
PTTCH 2Q11 Highlights
Market Overview
2Q11 Performance
Conclusions
41
PTT Chemical Public Company Limited
Lower production volumes QoQ due to plants shutdown for maintenance; however,
Gas received from PTT is expected to be more stable, as the 34” pipeline was already repaired and
has resumed its operation since August 15
Product price is expected to sustain and/or slightly increase due to crackers turnaround in ME,
Taiwan and Singapore as well as higher demand from re-stocking season
2H11 Outlook
3Q11 Outlook
Minimal additional world capacities
Product prices is expected to remain at relatively high level, supported by high crude oil price
Demand for petrochemical products from Japan for reconstruction phase is expected to resume
More integration margins from downstream products, particularly from PTTPE
TOCGC’s suspended MEG capacity of 95 kta is expected to resume operation in late 3Q11
Conclusions
42
PTT Chemical Public Company Limited
Thank YouWebsite : WWW.PTTCHEMGROUP.COM
Contact IR Division:Tel. +662-265-8400 Ext. 8574,8533-4
Fax. +662-265-8500
43
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