analyst meeting 2q/12 operating...
TRANSCRIPT
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Analyst Meeting Presentation2Q/12 Operating Results
August 16, 2012PTT Auditorium, Bangkok
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DisclaimerThis presentation includes forward‐looking statements that are subject to risks anduncertainties, including those pertaining to the anticipated benefits to be realized from theproposals described herein. This presentation contains a number of forward‐lookingstatements including, in particular, statements about future events, future financialperformance, plans, strategies, expectations, prospects, competitive environment, regulationand supply and demand.
PTTGC has based these forward‐looking statements on its views with respect to future eventsand financial performance. Actual financial performance of the entities described herein coulddiffer materially from that projected in the forward‐looking statements due to the inherentuncertainty of estimates, forecasts and projections, and financial performance may be betteror worse than anticipated. Given these uncertainties, readers should not put undue reliance onany forward‐looking statements.
Forward‐looking statements represent estimates and assumptions only as of the date that theywere made. The information contained in this presentation is subject to change without noticeand PTTGC does not undertake any duty to update the forward‐looking statements, and theestimates and assumptions associated with them, except to the extent required by applicablelaws and regulations.
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Highlights Market Outlook 2Q/12 Financial Results Conclusion Appendices
Agenda
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Global economic recovery was still at risk, and Eurozone economies remained in a “precarious” situation.
Growth in emerging economies slowed down amid key concerns over global economic recession
Crude oil prices tumbled, governed more by sentiment rather than fundamentals i.e. ease of concern over supply shortage in oil‐producing countries, uncertainty in Euro debt crisis
Petrochemical demand softened amid weak demand among end users, while supply was reduced from scheduled maintenance and production slowdown
THB currency remained volatile against USD due to the uncertainty of global economic outlook
Business EnvironmentHighlights
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Key DevelopmentsMay 2012
• Mr. Anon Sirisaengtaksin joined as the new CEO in May 1, 2012• Closing of Vencorex Holding acquisitions on May 31, 2012
• PTTGC acquired 51% of the shares in Perstorp Holding France SAS in the amount of Euro 121 million • Renamed the purchased entity from Perstorp Holding France SAS to VENCOREX Holding
• Closing of NatureWorks acquisitions on May 31, 2012• PTTGC acquired 50% of the shares in NatureWorks in the amount of USD 150 million
• Signed Head of Agreement with Petronas and Itochu under Petronas Rapid Project for the feasibility study to expand downstream product portfolio – the study targets to complete by June 2013
• Map Ta Phut Case: TOCGC’s Expansion• The Supreme Administrative Court, on June 28, 2012, passed a judgment which released TOCGC’s
expansion project from suspension list. An environmental impact assessment report for this project has been submitted to the authority and PTTGC is currently seeking IEAT approval
June 2012
• Kick off 1 SAP Project • The Company has been smoothly running 3 SAP since the amalgamation and currently in the process
of achieving 1 SAP project which targets to finish by 2014• Integration Management Office (IMO) has completed the overall integration process
July 2012
Highlights
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Strategic Moves
To prepare for unfavorable circumstances arisen from Euro debt crisis• Adopted a stress test program among PTT group to establish a mitigation plan • Company’s austerity program ‐ cut 5‐10% OPEX in preparation of unexpected circumstances• Liquidity program : S‐T working cap of THB 30,085 million and L‐T committed THB 46,552 million
To be benchmarked in the 1st quartile of Philip Townsend and Solamon Energy Corporation for the 4 aspects of operational excellence within 2020
• Efficiency• Reliability• Safety• Cash Cost
To complete one single business process and information platform by 2014• One SAP and IPACK (Financial consolidation information package)• Single and streamlined business process
To study together with McKinsey&Co on firms competitiveness Investment under study > 80 projects, of which 40 projects under screening process and
approximately 30 projects under feasibility study
Leadership Focus• Align newly amalgamated entities to grow in the same integrated direction• Establish strong fundamentals to support future investment
Highlights
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2Q/12(MB)
YoY%
QoQ%
Sales Revenue 139,241 5% 4%
EBITDA 6,705 57% 54%
Adjusted EBITDA* 12,892 10% 15%
Net Profit 851 90% 91%
Ending Dubai Crude (USD/BBL) 93 13% 23%
2Q/12 performance driven by volume while market was weak
Business Operation HighlightsHighlights
* Adjusted EBITDA = EBITDA excluding Stock Gain/(Loss) and NRV
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2Q/12%
2Q/11%
1Q/12%
Refinery 3% 4% 2%
Aromatics 5% 2% 5%
Olefins and Derivatives 27% 29% 26%
PTTGC Adjusted EBITDA Margin 9% 11% 8%
Adjusted EBITDA MarginHighlights
Improving Margins QoQ but down YoY
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Feedstock Pricing Formula Adjustment 2012 Gas Price adjustment rationale Structural Change of Gas from Higher E&P Cost, and, Higher long term crude projection
Current gas feedstock pricing with linear relationship (aX + b) no longer reflects equal IRR
Assumptions Assumptions: Crude price assumption range of 70‐130 USD/BBL Investment cost, production cost and sales expenses based on global standard (Foster Wheeler and CMAI) Accounted for future increase in E&P cost from the existing sources. Accounted for changes in product price movement
Principle of the profit sharing basis preserved
Results from the Adjustment Increased PTTGC’s current gas cost by 40 USD/ton or 8%, effective August 1, 2012
Extend contract terms expiring year 2016 to be expired year 2020, other contracts expiring after 2020 remain the same
PTTGC remains PTT’s Petrochemical Flagship, reflected in downstream derivative expansion support including asset injections and gas supply commitment for Debottleneck project
Highlights
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USD/Barrel 2011 2012 2013 2014 2015 2016Dubai Crude 106 117 116 113 116 121Gasoline‐Dubai 13 12 10 10 10 10Jet‐Dubai 19 17 16 16 17 18Diesel‐Dubai 18 16 14 14 15 15Fuel Oil‐Dubai ‐5 ‐4 ‐5 ‐5 ‐5 ‐5
USD/BBL USD/BBL
Source: PIRA, May 2012
13 12 10 10 10 10
19 17 16 16 17 1818 16 14 14 15 15
-5 -4 -5 -5 -5 -5
106117 116 113 116 121
120129 126 123 126
131126134 132 128 132
138
125133 130 126 130
136
101113 111 107 111 116
-10
0
10
20
30
40
50
60
70
80
-20
0
20
40
60
80
100
120
140
160
2011 2012 2013 2014 2015 2016Gasoline 95-Dubai Jet-Dubai Diesel-Dubai Fuel Oil-Dubai Dubai Crude
Gasoline 95 Jet Diesel Fuel Oil
Market OutlookDubai Crude Oil prices pressured by economic slowdown but minimized by ME politics
11
0100020003000400050006000700080009000
2012 2013 2014 2015 2016
America Europe Middle East China Other Asia Additional demand
Unit : KMT
Saudi Polymers Saudi1,200 KMTQ3‐11 to Q3‐12
Ilam Iran458 KMTQ1‐12 to Q1‐15SINOPEC Wuhan CH
800 KMTQ1‐11 to Feb‐13
ExxonMobil SG1,000 KMTQ3‐11 to Q1‐13
Shanghai PC China600 KMTQ3‐12 to Q1‐14
Daqing PC China600 KMTQ1‐11 to Q3‐12
Kavyan PC Iran1,000 KMTQ1‐13 to Q1‐14
Fushun PC China800 KMTQ1‐10 to Q3‐12
Sichuan PC China1,000 KMTQ3‐11 to Q1‐13
Ilam Iran458 KMTQ1‐12 to Q1‐15
230 291194 212261
391 451 410
1,021893
818 809
1,2511,184
1,015 1,015
1,281 1,284 1,263 1,227
0
200
400
600
800
1,000
1,200
1,400
1,600
1Q/12 2Q/12 3Q/12 4Q/12
OlefinsPrices to decline but eased by shutdowns and seasonal demand
USD/Ton Short‐term Price Forecast
Source: CMAI July 2012
Short‐Term• Olefins prices expected to decline in 3Q/12 due to lower crude oil prices and additional supplies in China and Middle East amid the uncertain global economic and energy outlook.
• However the market will be eased by
1) scheduled maintenance of crackers of which estimated 10‐15% of total Asia ethylene capacity will be lost and,
2) improve demand due to peak manufacturing season towards end 3Q/12
Short‐Term• Olefins prices expected to decline in 3Q/12 due to lower crude oil prices and additional supplies in China and Middle East amid the uncertain global economic and energy outlook.
• However the market will be eased by
1) scheduled maintenance of crackers of which estimated 10‐15% of total Asia ethylene capacity will be lost and,
2) improve demand due to peak manufacturing season towards end 3Q/12
Market Outlook
Additional (2012‐2016) (Unit : MMT)
Supply Demand26.86 30.41
Long‐term Supply/Demand
12
‐5000
50010001500200025003000
2012 2013 2014 2015 2016America Europe Middle East China Other Asia Additional demand
375494 487 486
297
464 435 441370
469 413 420
1,021893
818 809
1,395 1,3871,305 1,295
1,318 1,3571,253 1,250
1,391 1,3621,232 1,228
0
200
400
600
800
1,000
1,200
1,400
1,600
1Q/12 2Q/12 3Q/12 4Q/12
Short‐term Price ForecastUSD/Ton
Short‐Term• Strong buying resistance from end‐use producers due to squeezed margins and debt‐crisis in Eurozone will weigh on PE demand.
• PE supply from Asia and Middle East will be less due to schedule maintenance and high manufacturing season since end 3Q/12
Short‐Term• Strong buying resistance from end‐use producers due to squeezed margins and debt‐crisis in Eurozone will weigh on PE demand.
• PE supply from Asia and Middle East will be less due to schedule maintenance and high manufacturing season since end 3Q/12
Polyethylene Short term weak demand, expected improving margin in long‐term
Market Outlook
Source: CMAI July 2012
Unit : KMT
Saudi Polymers Saudi.1,100 KMTQ3‐11 to end Q3‐12
ExxonMobil Singapore325 KMTQ3‐11 to canceled OPAL India
350 KMTQ1‐13 to Q1‐14SINOPEC Wuhan China
300 KMTQ1‐11 to Feb‐13
Daqing PC China275 KMTQ2‐11 to Q3‐12
Fushun PC China575 KMTQ2‐12 to Q3‐12
Additional (2012‐2016) (Unit : MMT)
Supply Demand9.67 10.23
HDPE Long‐term Supply/Demand
13
LLDPE & LDPE New Capacities and Closures
LDPE Long‐term Supply/Demand
LLDPE Long‐term Supply/Demand
0200400600800100012001400
2012 2013 2014 2015 2016America Europe Middle East China Other Asia Additional demand
Additional (2012‐2016) (Unit : MMT)
Supply Demand7.56 7.41
Additional (2012‐2016) (Unit : MMT)
Supply Demand3.49 3.46
SINOPEC Wuhan China300 KMTQ1‐11 to Feb‐13
Shanghai PC China125 KMTQ3‐12 to Q1‐14
ExxonMobil SG 975 KMTQ1‐11 to Q4‐12
Daqing PC China275 KMTQ2‐11 to Q3‐12
Sichuan PC China300 KMTQ3‐12 to Q4‐13
QAPCO Qatar300 KTAQ1‐12 to Q3‐12
Market Outlook
‐500
0
500
1000
1500
2000
2500
2012 2013 2014 2015 2016
America Europe Middle East China Other Asia Additional demand
Unit : KMT
14
Short‐term Price ForecastUSD/TonShort‐Term• Most players are still keeping cautious given poor downstream Polyester demand amid uncertain global economic outlook.
• Buying sentiment is expected to be driven up from stronger demand in the downstream textiles and fabrics sectors in China from high manufacturing season in 3Q – 4Q/12
• Cotton price remains high from expected shortage in a near term due to draught in US and Pakistan, and flood in China
Short‐Term• Most players are still keeping cautious given poor downstream Polyester demand amid uncertain global economic outlook.
• Buying sentiment is expected to be driven up from stronger demand in the downstream textiles and fabrics sectors in China from high manufacturing season in 3Q – 4Q/12
• Cotton price remains high from expected shortage in a near term due to draught in US and Pakistan, and flood in China
424 397 381470
1,021893
818 809
1,2511,184
1,015 1,015
1,2371,167
1,0411,130
0
200
400
600
800
1,000
1,200
1,400
1,600
1Q/12 2Q/12 3Q/12 4Q/12
Source: CMAI July 2012
MEGCautious buyers but expect to improve at year end
Market Outlook
0
1000
2000
3000
4000
5000
6000
2012 2013 2014 2015 2016
America Europe India Middle East
China Other Asia Additional demand
Heyuan Chem China500 KTAQ4‐12 to Q3‐13
PetroChina China380 KTAQ1‐12 to postpone
Tongliao Jinmei China400 KTAQ1‐13 to Q3‐13
Tongliao Jinmei China400 KTAQ1‐13 to Q4‐12
Qianxi Coal ChemChina300 KTAQ3‐13 to Q1‐14
MEG Long‐term Supply/Demand
Additional (2012‐2016) (Unit : MMT)
Supply Demand9.75 8.00
Unit : KMT
15
Short‐term Price Forecast
Short‐Term• PX market in 2H/12 remains under pressure from squeezed PTA margins and high inventory levels among downstream Polyester market.
• Improved demand in the downstream textiles and fabrics sectors in China from high manufacturing season in Q3‐Q4.
• Price will still be driven by high cotton price – inline with views on MEG
Short‐Term• PX market in 2H/12 remains under pressure from squeezed PTA margins and high inventory levels among downstream Polyester market.
• Improved demand in the downstream textiles and fabrics sectors in China from high manufacturing season in Q3‐Q4.
• Price will still be driven by high cotton price – inline with views on MEG
USD/Ton
541 604496 495
1,021893 818 809
1,562 1,4971,314 1,303
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1Q/12 2Q/12 3Q/12 4Q/12
Source: CMAI July 2012
Paraxylene High cotton price helps stabilizing PX demand
Market Outlook
00.51
1.52
2.53
3.54
4.5
2012 2013 2014 2015 2016
Thou
sand
s
America Europe Middle East Asia Additional demand
Additional (2012‐2016) (Unit : MMT)
Supply Demand17.33 12.76
PX Long‐term Supply/Demand
PetroRabigh Saudi. 1,400 KTAQ3‐15 to Q3‐16
Tenglong Aromatics2China800 KTAQ2‐12 to Q3‐12
Tenglong Aromatics1China800 KTAQ3‐12 to Q4‐12
Sinopec Hainan Ref. China600 KTAQ1‐15 to Q4‐14
MTon
16
Short‐term Price ForecastUSD/Ton
Short‐Term• Supply continue to be short due to shutdown of refineries in the US
• Naphtha crackers in Europe are expecting to operate at low level which resulted in decreased supply of pygas
• Demand of BZ weaken from uncertain global economic fundamentals
Short‐Term• Supply continue to be short due to shutdown of refineries in the US
• Naphtha crackers in Europe are expecting to operate at low level which resulted in decreased supply of pygas
• Demand of BZ weaken from uncertain global economic fundamentals
159 225 252 237
1,021893
818 809
1,1801,118 1,071 1,045
0
200
400
600
800
1,000
1,200
1,400
1Q/12 2Q/12 3Q/12 4Q/12
Source: CMAI July 2012
Market OutlookBenzeneLess surplus due to refineries shutdown in US
‐500
0
500
1000
1500
2000
2500
2012 2013 2014 2015 2016
America Europe Middle East China Other Asia Additional demand
Additional (2012‐2016) (Unit : MMT)
Supply Demand7.80 7.21
BZ Long‐term Supply/Demand
Daqing PC China150 KTAQ1‐13 to Q3‐12
Anqing PC China54 KTAQ3‐12 to Q1‐13
Samsung Total PCS. Korea422 KTAQ4‐14 to Q1‐15
Nghi Son Vietnam246 KTAQ1‐15 to Q3‐16
Tenglong (Dragon) China229 KTAQ3‐12 to Q3‐13
Unit : KMT
17
0
20
40
60
80
100
120
140
160
Dec‐09 Mar‐10 Jun‐10 Sep‐10 Dec‐10 Mar‐11 Jun‐11 Sep‐11 Dec‐11 Mar‐12 Jun‐12
Dubai ULG 95 Jet Gas Oil Fuel OilUSD/BBL
1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12
7876 74 84 100 111 107 106 116▲2 ▼4 ▲10 ▲16 ▲11 ▼4 ▼1 ▲6
‐6
2010 Dubai: 78 USD/bbl 2011 Dubai: 106 USD/bbl YTD Dubai: 110 USD/bbl
Dubai106
▼10
2Q/12
Oil Price Price Movement & Crack Spread
2Q/12 Financial Results
18
Refinery Intake, Sales, and Margin
Total intake increased 16% YoY and 10% QoQ from additional CR volume
Maximized condensate residue splitter hence yielded higher gasoil
Market GRM of 4.32 USD/BBL but registered stock loss (incl NRV) of 8.79 USD/BBL
Total intake increased 16% YoY and 10% QoQ from additional CR volume
Maximized condensate residue splitter hence yielded higher gasoil
Market GRM of 4.32 USD/BBL but registered stock loss (incl NRV) of 8.79 USD/BBL
+
2Q/12 Financial Results
6.40 3.80 4.32
‐1.37
0.19 0.58
2.28 4.90
‐8.79
‐10.00‐8.00‐6.00‐4.00‐2.000.002.004.006.008.00
10.00
2Q/11 1Q/12 2Q/12
Market GRM Hedging Gain/(Loss) Stock Gain/(Loss) Net NRV
Acct. GRM‐3.89
8.897.31
2Q/12
19
340
255
209246
286
168 184
84
175 177
0
50
100
150
200
250
300
350
400
1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12 2Q
BZ Spot Korea‐Condensate
435359
289
460
692619 590 569 556 567
0
100
200
300
400
500
600
700
800
1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12 2Q
PX FECP‐Condensate
620 648 624 713859
942▲28 ▼24 ▲89 ▲146 ▲121 ▼38 ▼19 ▲83
1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12
2010 Nap J: 724 USD/ton
2011 Nap J: 938 USD/ton2011Cond: 926 USD/ton
2010 Cond: 651 USD/ton
1Q/12 Nap J: 1,021 USD/ton1Q/12 Cond: 1,006 USD/ton
USD/TonCondensate980
9231,006 930
2Q/12 Nap J: 893 USD/ton2Q/12 Cond: 930 USD/ton
386
618 263
181
0
200
400
600
800
1000
1200
1400
1600
1800
Dec‐09 Feb‐10 Apr‐10 Jun‐10 Aug‐10 Oct‐10 Dec‐10 Feb‐11 Apr‐11 Jun‐11 Aug‐11 Oct‐11 Dec‐11 Feb‐12 Apr‐12 Jun‐12
Condensate Erawan Naphtha MOPJ BZ Spot Korea PX FECP
AromaticsPrice Movement & Spread
2Q/12 Financial Results
20
Aromatics Intake, Sales, and Margin
BTX Rate 90% ‐ improved YoY , QoQfrom higher BTX production
Market P2F of 191 USD/ton, higher 38% YoY from higher discount on feedstock cost
BTX Rate 90% ‐ improved YoY , QoQfrom higher BTX production
Market P2F of 191 USD/ton, higher 38% YoY from higher discount on feedstock cost
*Brent Dtd 2Q/12 108 USD/BBL 2Q/11 117 USD/BBL
2Q/12 Financial Results
21
OlefinsFeedstock Breakdown
18% 17% 22% 18% 14% 11% 7%16% 12%
82% 83% 78% 82% 86% 89% 93%84% 88%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2Q/10 3Q/10 4Q/10 1Q/11 2Q/11 3Q/11 4Q/11 1Q/12 2Q/12
571 460 562 860 858 740 662 883 883
Unit: K Ton
Gas
Naphtha
Feedstock volume remained the same as in 1Q/12 at 883 Kton with 88% naphtha feed and 12% gas feed. The Company’s I‐4/1 naphtha cracker operated at 71% utilization rate
2Q/12 Financial Results
22
Polyethylene and MEG Price Movement and Spread
2Q/12 Financial Results
2Q/12 2Q/11 1Q/12HDEP 1,376 1,389 1,395 LLDPE 1,342 1,380 1,318 LDPE 1,349 1,683 1,391
USD/Ton
23
Olefins and Olefins DerivativesSales Volume and U‐Rate
211,116 174,966
216,688
82%86% 89%
0%
20%
40%
60%
80%
100%
0
50,000
100,000
150,000
200,000
250,000
2Q/11 1Q/12 2Q/12
Olefins U‐Rate
203,046 181,766 186,455
103% 99% 101%
0%
20%
40%
60%
80%
100%
120%
100,000
120,000
140,000
160,000
180,000
200,000
220,000
2Q/11 1Q/12 2Q/12
HDPE U‐Rate
61,171 98,715
69,502
60%
100%
77%
0%
20%
40%
60%
80%
100%
(10,000) 10,000 30,000 50,000 70,000 90,000
110,000 130,000 150,000
2Q/11 1Q/12 2Q/12
LLDPE U‐Rate
50,331 59,724
54,184
82%71%
98%
0%
20%
40%
60%
80%
100%
20,00025,00030,00035,00040,00045,00050,00055,00060,00065,000
2Q/11 1Q/12 2Q/12
LDPE U‐Rate
54,425 68,914
89,516 48%
80% 85%
0%
20%
40%
60%
80%
100%
‐
20,000
40,000
60,000
80,000
100,000
2Q/11 1Q/12 2Q/12
MEG U‐Rate
Ton
Ton
TonTon
Ton
2Q/12 Financial Results
24
0
500
1000
1500
2000
2500
3000
Dec‐09 Feb‐10 Apr‐10 Jun‐10 Aug‐10 Oct‐10 Dec‐10 Feb‐11 Apr‐11 Jun‐11 Aug‐11 Oct‐11 Dec‐11 Feb‐12 Apr‐12 Jun‐12
BZ Spot Korea BPA Phenol
24
2010 Phenol 1,622 $/ton 2011 Phenol 1,717 $/ton 1Q/12 Phenol 1,484 $/ton2010 BPA 1,945 $/ton 2010 BPA 2,101 $/ton 1Q/12 BPA 1,690 $/ton
Sales Volume and U‐Rate
Remark: BPA started commercial operation in April 2011
2Q/12 Phenol 1,442 $/ton2Q/12 BPA 1,653 $/ton
32,346
44,707
31,081
26,326 12,810 29,160
119%97% 122%
75%
27%
82%
0%
20%
40%
60%
80%
100%
120%
140%
‐
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2Q/11 1Q/12 2Q/12
Phenol BPA Phenol U Rate BPA U Rate
Phenol and BPA Price Movement and Spread
2Q/12 Financial Results
567 803
961 936 791 1,063
706 422 444 468
‐
500
1,000
1,500
1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12 2Q
Phenol ‐ (BZ*0.88)
444 523 532
764862
669 599436 429 428
0
500
1000
1Q/10 2Q 3Q 4Q 1Q/11 2Q 3Q 4Q 1Q/12 2Q
BPA‐ (Phenol*0.85)
817 746
566 641
25
Revenues Breakdown
Refinery, 41%
Aromatics, 28%
Olefins and Derivative,
21%
Phenol, 4%
Green Chemical, 2%
Others, 5%
Refinery, 52%
Aromatics, 18%
Olefins and Derivative,
20%
Phenol, 3%
Green Chemical,
3% Others, 4%
Refinery, 48%
Aromatics, 21%
Olefins and Derivative, 20%
Phenol, 3%
Green Chemical, 2%
Others, 5%
2Q/122Q/11 1Q/12
133,202 MB139,241 MB133,666 MB
Petrochemical 53% Petrochemical 41% Petrochemical 44%
2Q/12 Financial Results
26
Adjusted EBITDA Breakdown (Exclude Stock Gain/(loss) & NRV)
Refinery, 17%
Aromatics, 4%
Olefins and Derivative, 58%
Phenol, 10%
Green Chemical, 2%
Others, 9%
Refinery, 15%
Aromatics, 11%
Olefins and Derivative,
62%
Phenol, 2%
Green Chemical, 3%
Others, 8% Refinery,
17%
Aromatics, 11%
Olefins and
Derivative, 58%
Phenol, 2%
Green Chemical,
2%Others, 10%
2Q/122Q/11 1Q/12
14,257 MB 12,892 MB11,201 MB
Petrochemical 72%Petrochemical 75% Petrochemical 71%
2Q/12 Financial Results
27
Statements of Income ‐ ConsolidatedM. Baht % M. Baht % M. Baht % M. Baht % M. Baht %
1 Sales Revenue 139,241 100 133,202 100 133,666 100 6,039 5 5,575 4
2 Feedstock Cost (118,078) (85) (111,996) (84) (114,609) (86) 6,082 5 3,469 3 3 Product to Feed Margin 21,163 15 21,206 16 19,057 14 (43) (0) 2,106 11 4 Variable Cost (3,826) (3) (2,373) (2) (2,966) (2) 1,453 61 860 29
5 Fixed Cost (3,508) (3) (2,986) (2) (3,260) (2) 522 17 248 8 6 Stock Gain/(Loss) & NRV (6,187) (4) 1,183 1 3,409 3 (7,370) (623) (9,596) (281)
7 Gain/(Loss) Hedging Commodity 302 0 (640) (0) 95 0 942 147 207 216 8 Other Income 1,283 1 1,167 1 752 1 116 10 531 71
9 SG&A (2,522) (2) (2,117) (2) (2,478) (2) 405 19 44 2 10 EBITDA 6,705 5 15,440 12 14,610 11 (8,735) (57) (7,905) (54)
11 Depreciation & Amortization (3,697) (3) (3,278) (2) (3,527) (3) 419 13 170 5 12 EBIT 3,008 2 12,162 9 11,083 8 (9,154) (75) (8,075) (73)
13 Financing Expenses (Net Interest Earned)
(1,373) (1) (1,428) (1) (1,325) (1) (55) (4) 48 4
14 FX Gain/(Loss) (1,281) (1) (391) (0) 1,036 1 (890) (228) (2,317) (224)
15 Shares of gain/(loss) from investments 101 0 115 0 (42) (0) (14) (12) 143 340 16 Corporate Income Tax 532 0 (956) (1) (683) (1) 1,488 156 1,215 178 17 Net Profit before Minority 987 1 9,502 7 10,069 8 (8,515) (90) (9,082) (90)
18 Earning Attribute to Minorities (136) (0) (724) (1) (217) (0) (588) (81) (81) (37)19 Net Profit 851 1 8,778 7 9,852 7 (7,927) (90) (9,001) (91)
20 Adjusted EBITDA 12,892 14,257 11,201 (1,365) (10) 1,691 15
2Q/2012 2Q/2011 1Q/2012 YoY QoQ
2Q/12 Financial Results
28
Statements of Financial Position ‐ Consolidated
Non‐CA 35,155
PP&E 238,069
Equities 217,922
CA 94,600
Loans 122,595
Cash+ ST Inv. 22,524 Liab.
49,832
Non‐CA 32,387
PP&E 235,343
Equities 208,454
CA 82,631
Loans 120,165
Cash+ ST Inv. 22,606 Liab.
44,347
December 31, 2011 June 30, 2012
Financial Ratio
390,348 MB372,967 MB
2Q/12 Financial Results
2Q/2012 1Q/2012ROA 5.37% 7.53%
ROE 9.62% 13.22%
Net IBD / Equity 0.46 0.42
Net IBD / EBITDA 2.37 1.80
29
0
5,000
10,000
15,000
20,000
25,000
30,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PTTGC PTTUT PPCL Others
2011 Q2 2012
PTTGC Debts ~ Bt 122.60 bn
Repayment Scheduleas at 30 June 12
Unit : Million Baht
120,165
28,594(24%)
91,571(76%)
122,595
Unit : Million Baht
30 June 12 ‐ Debt Structure & Cost Cost of long term debts ~ 5.1% (Include W/H
Tax) % Total fixed‐rate long term debt ~ 54%
(THB fixed‐rate debt ~ 42%, Int. ~ 5.4%, USD fixed‐rate debt ~82%, Int. ~ 5.3%)
Average loan life after refinancing ‐ 4.6 Years
THB USD & Foreign
33,773(27%)
88,822(73%)
2Q/12 Financial ResultsPTTGC Repayment Schedule (after Refinancing)
December 31, 2011 June 30, 2012
30
Dedication to best‐in‐class execution of the integration and strategic plan
Value‐enhancing investment plan designed to improve profitability and developcompetitive advantages
Petrochemical feedstock cost increase mitigated by PTT’s support for downstreamderivatives expansion and their reinforced commitment to supply natural gasfeedstock for the Company’s debottleneck project
Feedstock price agreement underlines the status as PTT's Petrochemical Flagshipwith strong strategic linkages and attractive business co‐operation opportunities
Commitment to protect and maintain credit ratings through disciplined financialpolicy and prudent investment decisions
Recap and Looking ForwardConclusion
32
Change in Calculation Method Refinery Business
Before: GRM Margin on Net IntakeCurrent: GRM Margin on Total Intake
Appendices
• Previously, products internally transferred within the companies were booked at cost while now determined on a market basis.
• Revised information on market GRM and market P2F starting from 1Q/2011 to 4Q/2011 for future reference and consistency
33
Before: P2F Margin on Net External Sales Current: P2F Margin on Net BTX Sales
AppendicesChange in Calculation Method Aromatics Business