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PTT RoadshowThanachart Securities Plc./
BNP Paribas Securities23-24 June 2008
2
DisclaimerDisclaimer
The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events and financial performance. 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 the our assumptions are correct. Actual results may differ materially from those projected.
3
ContentsContents
Conclusion
Financial Performance
About Thailand
Introduction to PTT
Activities & Operational Results
4
Population : 65 millionArea (sq.km) : 513,100Climate : Tropical ClimateWeather: Avg. 18-34 C
About Thailand
Total Petroleum Supply : 1,592 KBDCrude Oil : 1,013 KBD- Import (incl. refined prod.) 820 KBD (81%)- Domestic 193 KBD (19%)Natural Gas : 579 KBD- Import 158 KBD (27%)- Domestic 521 KBD (73%)
China
Mongolia
Russia
JapanKorea
India
Middle East
Thailand
General Information
GDP (2007) : US$ 262 trnGDP Growth : 4.8%
Economic Information
2007 Energy InformationTotal Petroleum Demand & Export: 1,488 KBD
Domestic Demand : 1,303 KBD- Refined Products 724 KBD (56%) - Natural Gas 579 KBD (44%)Export : 185 KBD- Refined Products 133 KBD (72%)- Crude Oil/Condensate 52 KBD (28%)
5
ContentsContents
Conclusion
Financial Performance
Introduction to PTT
Activities & Operational Results
About Thailand
6
0
100
200
300
400
500
Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07200
700
1,200
1,700
2,200PTT +717%
SET +143%
PTT’s Strategic Importance to the Thai Economy
9,1585,853
1,799823
0
2,500
5,000
7,500
10,000
GDP SET (63.9% GDP)PTT Group (19.6% GDP) PTT (9.0% GDP)
Bn BahtPTT represents a large portion of the Thai EconomyPTT represents a large portion of the Thai Economy
Data as of 19 June 2008
PTT has outperformed the market since IPO on 6 December 2001
PTT has outperformed the market since IPO on 6 December 2001
SETPTT (Baht/sh)
Ownership : Ministry of Finance ‘Direct and Indirect’ ~ 67%, Public ~ 33%
Data as of 19 June 2008
Mkt. Cap (MMBaht) %PTT has the largest market cap on the SETPTT has the largest market cap on the SET
Others69%
PTT14%
Affiliates17%
SETPTT GroupPTTPTTEPPTTCHTOPIRPCPTTARBCPOTHERS
8,853,0951,799,184
823,112557,473152,667102,00176,05065,20012,64610,033
Ministry of Finance
52%Vayupak Fund 1
15%
Public33%
Shareholders’ structure as of 21 March 2008
Shareholders’ structure as of 21 March 2008
Data as of 19 June 2008
“Ministry of Finance holds majority stake in PTT”
100.030.714.19.52.61.71.31.10.20.2
Thailand’s only fully-integrated Oil and Gas Company with leading position in E&P, transmission, refining, marketing & trading of Petroleum and Petrochemical productsKey driver of Thailand’s economic growth and industrial development
7
PTT ratings are comparable to sovereign ratingsPTT ratings are comparable to sovereign ratings
Foreign : Moody’s (A2) / S&P (BBB+) / JCR (A-) Local : Moody’s (A2) / S&P (A-) / JCR (A+)
Recognition: Confidence & CredibilityPTT is widely recognized among business community both local and international
207th/2007 Global 500 The World’s Largest Corporations
(265th//2006 373rd/2005 & 456th/2004 )
1st in Thailand / 2nd in Asia in 2006 : The Best Company For CG
The Best For Disclosure & Transparency The Best For Shareholders’ Right &
Equitable Treatment1st : Large-Cap Corporate 2005/2006
2008 : Asia’s Best Managed and Governed Companies Poll 2008
2005 : The Best Managed Companyin Asia/in Thailand/The Oil & Gas Sector
1st : Best CFO 2008/20061st : Best Managed Company 2008/2006/2005
1st : Best CG 2006/20051st : Best IR 2008/2006
SET Awards 1st : Best CSR 2006 1st : Best IR 2006 and Distinction in Maintaining Excellent CG Report 20061st : Best CEO of the Year 20051st : Best Performance 20051st : Best CG Report 2005
1st : Asia’s Best Companies on Corporate Governance 2006 & 2007
Global Top 40 Executives inChemical by ICIS 2006
Best State Enterprise 2007 Awards1. Best Performance2. Best Managed company3. Social and Environmental
Commitment
Platts Top 250 Global Energy Companies 2007
27th worldwide, 4th in Asia/Pacific
Trusted brands 2008 in oil station
For 2001-2008
Board of the Year Awards 2007/2005 & 2006/2003 & 2004/2002
• Commitment to Social and Environmental Issues 2002-2007
• Commitment to Energy Saving 2007
205th/2008 Global 2000 The Biggest Listed Companies in The World
(354nd/2007, 372nd /2006425th/2005 & 461st/2004)
1st : Best CEO in Thailand 2004 & 20051st : Best Investor Relations in Thailand
Thailand’s Business Leader of the Year: 2005
8
Business Areas Activities Strategic IntentsMajor Operator (%)
““ Int
egra
ted
Valu
e En
hanc
ers
Inte
grat
ed V
alue
Enh
ance
rs””
E&PE&P
GasGas
Oil MarketingOil Marketing
Refining &Refining &PetrochemicalPetrochemical
PTTEPPTTEP 65.72% Exploration and Production
PTT PLCPTT PLCGas Pipeline 100% Sole owner/operator of the
Transmission pipelineS&M 100% Supply & Marketing of Natural GasGSP 100% Extracting Hydrocarbon contents in
natural gas for Petrochemical’s feedstock
PTT PLCPTT PLC• Oil Marketing 100% Retail service Stations and
commercial Marketing
• Int’l Trading 100% Import/Export/Out-Out trading of petroleum and petrochemical products
TOPTOP 49.10% Integrated Complex Refinery & Petrochemical
PTTAR PTTAR 48.66% Integrated Complex Refinery & Aromatics
IRPCIRPC 33.69% Integrated Refinery and Petrochemical
SPRCSPRC 36.00% Stand alone Complex Refinery
BCPBCP 29.75% Hydro-skimming Refinery & Retail Stations
PTTCH PTTCH 49.30% Gas-based Olefins Chain Petrochemical
Strategic Intents Drive Specific Sector ActionsFocusing on business management execution through the PTT business groups
““ Cor
e Va
lue
Crea
tors
Core
Val
ue C
reat
ors ””
Petrochemical
IntInt’’l Tradingl Trading
• Reduce Cost• Enhance Profitability
• Group Trading• Full Trading Activities
With Global Network
• Enhance Value thru De-bottlenecking, Upgrading, and PetchemIntegration
• Synergy/Amalgamation
• Downward Integration/ Higher-Value Products
• Market Back Strategy
• Indochina Basin Major
• LNG Value Chain• Int’l Platform Growth
• Value CreationEnhancement
9
1, 2 0 9 , 0 7 0
13 3 , 13 3
2 9 0 , 7 11
8 9 , 2 4 3
9 9 5 , 4 4 3
14 5 , 8 0 5
2 6 7 , 4 0 8
2 4 4 , 6 8 4
6 9 , 7 3 3
6 2 , 17 7
7 6 , 4 19
17 , 8 7 7
8 1, 5 3 0
2 3 , 7 15
7 6 , 6 7 6
7 0 , 7 4 9
8 , 8 4 6
14 , 9 4 5
2006 2007 1Q/2007 1Q/2008
P etro chem
P T T EP
Gas
Int ' l T rading
Oil M arket ing 55%
13%
2%5%
25%
Unit : MMBaht
1,213,985
1,495,806
Performance Highlights : 2007 and 1Q/2008 Results
RevenuesRevenues
Note : All figures after restatement; Segmentation of Revenues do not include others and eliminations
Revenue Breakdown – 1Q/08
Int’lTrading
Petrochem
Gas
Oil Marketing
PTTEP
80% of revenue contribute from retail oil marketing & int’l tradingRevenue in 2007 hit a new high record of Bt 1.5 trillion1Q/08 revenue increased 13% QoQ due to higher sales volume and sales prices despite PTTCH deconso.
US$ 15,046 mm
297,714
+23.2% YoY
+65% YoY+13% QoQ
489,890
10
5 4 , 6 8 5
13 , 5 0 2
6 6 , 8 5 0
15 , 2 8 519 , 8 8 4
3 3 7
5 , 0 0 3 8 , 6 0 7 1, 5 4 8 1, 9 7 91, 0 6 1 1, 5 15
11, 14 8
4 4 , 8 0 6
6 3 , 3 13
4 , 13 9
2 4 , 3 3 4
19 , 7 5 16 , 4 6 9
2006 2007 1Q/ 2007 1Q/ 2008
R ef ining A sso .
Pet ro chem
PT TEP
Gas
Int ' l T rad ing
Oil M arket ing53%
1%
36%
5%4%
Unit : MMBaht
142,675
Performance Highlights : 2007 and 1Q/2008 Results
+12% YoY+5% QoQ
EBITDAEBITDA
Note : All figures after restatement; Segmentation of EBITDA do not include others and eliminations
EBITDA Breakdown – 1Q/08
Gas
PTTEP
Int’l TradingOil MarketingPetrochem
TM 13%S&M 9%GSP 13%Others 1%
US$ 1,131 mm147,346
32,876 36,812
+3.3% YoY
EBITDA in 2007 increased 3% from the increase in sales volume and sales price2007 EBITDA increase was mostly from gas business, PTTEP and oil business despite deconso. of RRC in mid of 20071Q/08 EBITDA increase mainly from PTTEP’shigher sales volume and sales price
11
3 5 , 5 18
8 , 8 0 6 11, 8 3 6
18 , 3 7 8
6 , 0 0 8
9 , 7 3 4
5 , 7 5 4
15 , 3 6 7 2 4 3 12
3 6 , 3 6 2
6 , 6 8 2 4 , 8 5 9
4 , 3 8 7
18 , 2 0 0
1, 3 4 6
8 , 3 6 2
3 , 0 5 21, 5 0 5
4 ,4 4 43 ,74 94 , 5 6 1
4 , 6 9 05 4 6
2 , 2 9 9
7 7 5
5 5 9
2006 2007 1Q/ 2007 1Q/ 2008
Other A sso .R ef inery A sso . R R CP etro chem A sso .P T T C HP T T EPGain o n D ispo sal P T T
Net IncomeNet Income
Note : Categorized IRPC under Refining Affiliates. Other Affiliates comprise of THAPP, TLBC, PA(THAI), VLPG, KPL, PTTUT, IPT, TP, PTTICT
Performance Highlights : 2007 and 1Q/2008 Results
23%
18%2%
12%45%
Net Income Breakdown – 1Q/08
PetrochemAff.
PTTEP
PTT
Other Asso.
RefiningAsso.
US$ 803 mm
1Q/08 net income increased mainly due to
+16% YoY+7% QoQ
Unit : MMBaht
97,804+2.3% YoY
95,582
22,57326,133
Increase in 2007 NI from asso. due mainly to better performance of refineries and petrochemical asso. 2007 NI included expenses/effect from judgment of Supreme Administrative Court of approx. Baht 2.8 bn
− increase in PTT and PTTEP’s sales volume & sales price − despite the decrease in contribution from refining
associates due to the low aromatic’s product to feed margin and PX Plant shutdown for expansion.
12
Activities & Operational Results- PTTEP- PTT- Petrochemical Associates- Refining Associates
ContentsContents
Conclusion
Financial Performance
About Thailand
Introduction to PTT
13
PTTEP: The only Exploration and Production Arm of PTT
Proved Reserves 946 mmBOEProved Reserves 946 mmBOEOperations : 40 Projects in 14 Countries
Overseas32%
Domestic68%
Create high returns with significant growth potential
By Product By Geography
Gas79%
Liquid21%
North Africa (3)• Algeria• Egypt
Middle East (4)• Oman• Iran• Bahrain
South Asia (1)• Bangladesh
Australasia (2)• New Zealand• Australia
Asia Pacific (13)• Myanmar• Vietnam• Malaysia • Indonesia• CambodiaThailand (17)
ProjectsExploration 24Development 4Production 12Total 40
Reserves Replacement Ratio 1.31Reserve Life Index (year) 12
14
26,287
86,33990,764
19,731
63,313
15,247
66,850
19,18328,047 28,455
6,771 8,9050
20,000
40,000
60,000
80,000
100,000
2006 2007 1Q/07 1Q/08
RevenuesEBITDANI
Source: PTTEP analyst meeting, 7 May 2008
PTTEP: Strong Volume Growth with Potential Upside
1Q/2008 Product Mix1Q/2008 Product MixSales Volumes and PriceSales Volumes and Price
Strong EarningsStrong Earnings 2007 Performance & 2008 Target2007 Performance & 2008 Target
+8.9% +36.2% +4.2%+6.2% +6.6% +1.3%
%%YoYYoY %YoY%YoY %%QoQQoQ20072007 1Q/081Q/08
Net Income +1% +32% +9%
%YoY %YoY %QoQRevenue +5% +33% - 2%EBITDA +6% +26% +5%
MMBaht
Liquid32%
Gas68%
Gas43%
Liquid57%
By Volume By Revenue
Success rate of 36 out of 51 wells drilled in 2007PTTEP announced 2007 proved reserved of 946 MMBOE2008 Sales volume target at 223,000 BOED2008 Exploration & appraisal drilling program ~61 wells, incl. 35 wells in Thailand2008 Main Project Start-up
- Arthit 1Q/2008 at 330 mmscfd- Arthit North 3Q/2008 at 120 mmscfd- Vietnam 9-2 3Q/2008 at 20,000 BBLD- MTJDA 2H/2009 at 270 mmscfd
Gas (US$/MMBahtu) 4.95Liquid (US$/bbl) 88.09Avg. sales price (US$/boe) 48.24Reserve life 12 Years
PTT, as a major Shareholder, holds 65.72% in PTTEP
169,348 179,767 171,170 182,431
36.52 39.78
48.24
35.43
2006 2007 1Q/07 1Q/08
Sales Vol. (boed)Avg. Sales Prices ($/boe)
15
0
50
100
150
200
250
300
350
2008 2009
261223
180
5-Year CAGR = 7 %
2010
250
2007 2011
278252
2012
S1PailinBongkot
B8/32 & 9A
Oman
YadanaYetagun
Others
Arthit NorthVietnam 9-2
MTJDA
Arthit
Additional ST-Upside
Unit : Bt mm
Vietnam 16Vietnam 16--11 AlgeriaAlgeria M9M9
PTTEP: Sales Volume and Investment ProfileSales volume increases due to new projects coming on-steam; with continuous investment
Expected Sales VolumeExpected Sales Volume
‘00
0 B
OED
CAPEXCAPEX 59,804 50,054 32,725 27,629 21,893 192,105
OPEXOPEX 21,427 19,268 19,142 18,264 16,691 94,792
~ $6 bn
~ $3 bnNote: The above CAGR does not include volume from additional ST-Upside projects.
16
PTTEP: Potential and Upcoming Projects
Expand to cover Indochina Basin Major to seek more gas reserves that can directly be a part ofdomestic transmission systems while maintaining petroleum reserve at high level.
W. Corridor/MyanmarOCA* - Cambodia
E.Natuna-Indonesia
Natuna
MTJDA
BLOCK B-17
*OCA = Overlapping Claim Area
เติม A4, C1
M9M3 M4
M7
M11M9
M3 M4M7
M11
17
PTT: Transmission Pipeline NetworkSole owner and major operator of transmission pipelines in Thailand
Yetagun
YadanaWang Noi
Tha Luang Kaeng Khoi
Rayong
SBKRatchaburi
Thap Sakae
Khanom
BenjamasTantawanPlatong
PRPPailin Arthit
Bongkot
JDA
Erawan
BangPakong
Expansion UnderMaster Plan 3
Karnchanaburi
Power Plant
Gas Field
Puhom
Nampong
Chevron Add.
Arthit FPSO
Pailin Add.
South Bongkot
MYANMARLAOS
CAMBODIA
Existing 2nd Pipeline
TTM Pipeline
Existing 1st Pipeline
Current Capacity of 4,380 Current Capacity of 4,380 mmscfdmmscfd
Current pipeline length: 3,180 km
- Onshore: 1,397 km
- Offshore: 1,783 km
Major pipeline under construction:Major pipeline under construction:
JDA JDA –– ArthitArthit -- PRPPRPCOD ~ 2Q/2008
SainoiSainoi -- North BangkokNorth BangkokCOD ~ 2H/2009
Gas Transmission PipelinesGas Transmission Pipelines
Key projects are strategically linked Key projects are strategically linked and timely corresponding to meet and timely corresponding to meet demanddemand
COD : Commercial Operation Date
18
1,015 1,040 1,030 910
825 847 809 971
432 462 459 468
527 572 526 599285
351 344398
3,0843,272 3,167
3,346
2006 2007 1Q/2007 1Q/2008
EGAT IPP SPP GSP Industry
3,346
3,167
3,319 3,3183,284
3,1053,075
2,9703,013
3,061
3,138
3,016
2,940
2008 2007 2006 2005
1Q1Q 2Q2Q 3Q3Q 4Q4Q
2005 2005 avg. 2,996avg. 2,996
2006 2006 avg. 3,084avg. 3,084
2007avg. 3,272
27%
29%
14%
18%
12%
+6% YoY+2% QoQ
Customer ProfileCustomer ProfileGas Sales Volumes (mmscfd) @ heat 1,000Gas Sales Volumes (mmscfd) @ heat 1,000
Existing pipeline’s capacity ~ 4,380 MMscfd
2007 gas sales volume increased by 188 mmscfd YoY resulted from capacity increase, completion ofthe 3rd pipeline in early 2007Gas flow is expected to have ~9% growth in 2008 from Arthit and JDA A-18 gas fieldsPower producers are still the major buyers of NG supply (~70%)
PTT: Pipeline Business - Strong Demand with New Sources of Supply
+6.1% YoY
19
PTT: Natural Gas Sales Customer Breakdown During 1998 - 2007
Power producers are still major buyers of NG supply (~70%)EGAT proportion is decreasing while IPP and SPP is increasingIndustrial usage proportion, with higher margin, is increasing
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1998 1999 2000 2001 2002 2003 2004 2005 2006 20070%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
9%
69%
16%
7%
14%
32%
17%
11%
26%
1,040
847
462
572
351
1,083
104
135248
EGAT
IPP
SPP
GSPIndustry
EGAT
IPP
SPP
GSP
Industry
CAGR 9%
By Unit By percentagemmscfd
3,272
1,570
20
PTT: Gas Separation Plants
GSP #4
GSP #1-3 & #5
5 existing gas separation plants with production capacity of ~4.1 MTA
GSP products price linked to world market price
Additional capacity
GSP#6 : 1.8 MTACOD ~ 1H/2010Ethane Plant: 0.8 MTACOD ~ 1H/2010
RayongRayong
NakornsriNakornsrithammaratthammarat
Gas Separation PlantGas Separation Plant
Production Capacity Existing by 2010
- Ethane 1.1 2.4- Propane/LPG 2.6 3.7- Natural gasoline 0.4 0.6
Total 4.1 6.7
GSP is designed to extract higher product value from natural gas
21
1,607
1,266 1,510
1,264833
527 793
527
242222
1Q/07 1Q/08
1,3521,234
1,3321,228
625515608
512
221200
2006 2007
1,969 2,253
480 582
480521
980929
239241
132117199 26571
49
2006 2007 1Q/07 1Q/08
PropaneEthaneNGLLPG
• 2007 GSP’s sales volume increased by 9% from higher supply of gas feedstock and demand of GSP’s products
• Utilization rate increased from 99.2% in 1Q/07 to 101.5% in 1Q/08 and from 89.5% in 2006 to 101.0% in 2007
• LPG accounts by 50-55% of sales volume• Avg. selling prices of GSP products increased
in relation to petrochemical price increase
PTT: Gas Separation Plant - Performance
Sales Volume (x 1,000 tons)
27%20%51%58%9%
HDPEPPNaphthaLPG-CPFeedstock (NG)
10%8%8%
10%3%
Price ($/ton)1Q/08
3,668
1,028
%QoQ%YoYSales Volume1Q/08
%QoQ%YoYProduct Prices ($/ton)
57%13%26%5%
Note: 1/ South East Asia Spot Price 2/ Contract Price (CP 50:50) 3/ MOP Singapore
+19% YoY-7% QoQ
Feedstock(NG)
LPG2/
Naphtha3/
HDPE1/
PP1/
TotalPropaneEthaneNGLLPG
19%(31%)
33%13%21%
(7%)3%
(6%)(2%)
(10%)
3,994
867
+8.9% YoY
10%8%
21%19%11%
%YoY
%YoY9%1%
(5%)9%
14%
2007
2007
22
2 ,58 4 2 ,518
5,6 15 5,2 6 3
1,3 8 6 1,54 7
1,2 56 1,4 8 1
2 ,155 2 ,0 2 7
2 ,70 0 2 ,9 8 9
558 50 9
4 2 93 58511 4 9 0
7586 3 4
14,310 14,278
3,7333,447
2006 2007 1Q/07 1Q/08
LPGGasolineJet/IKDieselFuel Oil
2 4 ,573
3 4 ,4 9 7
4 ,3 3 5
4 ,4 2 0
2 ,0 2 4
2 ,2 2 9
56 0
4 ,3 3 7
6 ,514
10 ,6 177,59 01,0 9 8
1,0 9 14 73
2 ,0 6 91,0 50
14,33710,211
35,270
47,661
2006 2007 1Q/07 1Q/08
Refined ProductPetrochemCondensateCrude
PTT: Oil Business - Strong Leadership Position with No.1 market share PTT is a market leader in oil retails at 35% market share with 1,185 gas stations nationwide.
Unit : million liters
Source : Ministry of Energy: Note : excluded supply sales
Oil Marketing : sales volume ~ 258 Oil Marketing : sales volume ~ 258 kboe/dkboe/d
IntInt’’l Trading : trade volume ~ 991 l Trading : trade volume ~ 991 kboe/dkboe/dUnit : million liters
Source : PTT
22%
35%
7%12%
12%
12%
PTT
BCP
ESSOShell
Caltex
Others
Marketing MarginMarketing Margin
Trading MarginTrading Margin
Unit : Baht/Litre
4Q074Q07
20062006
11QQ070744Q07Q07
20072007
20062006
ThailandThailand’’s Market Shares Market ShareAs of March 2008As of March 2008
+8% YoY-2% QoQ
Source : Department of Energy Business
0.060.12
0.090.050.08
0.570.42
0.59
0.500.61
20072007
1Q071Q07
+35% YoY
-0.22% YoY
Marketing margin improved due to stock gain despite slightly decrease in 2007 sale volume
Trade volume in 2007 increased resulted from increase of out-out activitiesTrading margin was very minimal due partly to Baht appreciation
1Q081Q08
11Q08Q08
+40% YoY+19% QoQ
23
241,211CAPEX 2008 - 2012
65,563CAPEX 2008
20,656
39,933
54,55543,510
22,14013,016
2,149
4,118
1,816
1,885
1,533
34,537
20,593
15,048
12,650
4,636
673
919
486
345
354
1,5871,729357
Gas Oil JV HO&Others
71,905
58,390
28,663
16,690
2008 2009 2010 2011 2012
5 Years CAPEX Breakdown65,563
Unit: MMBaht
PTT: CAPEX (Company Only)
Sources : PTT (Board approval on 21 Dec 2007) ; FX = Baht 34 per USD
PTT plans to invest Bt 241 bn ($7bn) during 2008-2012, mostly into expanding gas business
JV23%
Gas72%
HO &Others1%
Oil4%
2007 A
58,015
72% of total investment goes to GasBusiness Group, which involve theexpansion of onshore and offshore gaspipeline capacity, GSPs and NGV stations
Transmission Pipeline & LNG
PTT: Major Infrastructure Expansion
Distribution Pipeline
GSP1GSP2GSP3GSP4GSP5
EthaneGSP6
4.1
6.7
GSPs Expansion NGV Expansion
Production(MT)
2007 2008 2009 2010 2011 2012
NGV Stations
55,868
328,000
167
725
NGV Vehicles
Existing4,380 mmscfd
By 20126,980 mmscfd
Substitution Target for Diesel/Benzene 20% ( 13.4 MM Litre) by 2012
320420 480
580
Existing920 km.
10 Provinces
By 20121,650 km.
23 Provinces
Distance
SalesVolume (mmscfd)
TM Capacity
242008 2010
B
a
n
I
T
o
n
g
S
B
K
Yadana
Yetagun
Three Offshore Pipelines
Total Capacity 4,140 MMscfd
Power PlantGas Field
LNG Terminal
TTM PipelineTotal Capacity 1,020 MMscfd
Note : Future capacity excludes TTM pipeline
23
426
+ LNG Terminal 5 MTA
(expand up to 10 MTA)
25
PTTCH: PTT’s Flagship in Olefins Business
Fabric
DetergentShampoo
Shoe Sole
Plastics Ware
PlasticBag
Biodiesel
Health & Personal Care
Pharmaceutical
Business Value Chain
Biggest Olefins Plant in Thailand and No.4 in Asia with diversified chemical companies
26
929
1,453
1,065
1,325
1,607
1,266
574
857
1Q/07 1Q/08
908
1,0791,159
1,154
1,2331,353
511626
2006 2007
Lower cost per unit and more stable income stream (PTT holds 49.30%)
Unit : Bt mm
PTTCH: Capacity Expansion and Diversified Portfolio
PerformancePerformance Product PricesProduct Prices
Note: 1/ SEA spot 2/ MOPS Source : PTTCH’s Analyst Meeting 1Q/08
Unit : USD/Ton
PTTCH is the 4th biggest producer in Asia2007 NI increase was due mainly to increase in product prices, despite 2 mthsshutdown in 1H/2007Started commercial operation of Methyl Ester Unit of Thai Oleochemical Co., Ltd. (TOL), a subsidiary of PTTCH, in February 2008.
HDPE1/
MEG1/
Ethylene1/
Naphtha2/
HDPE Util.
Olefins Util.
2 1, 0 9 112 , 4 6 5
7 3 , 8 7 06 9 , 8 11
23,789 25,343
3,822 7,5185 , 7 15
19 , 16 718 , 2 8 2
2 , 6 7 4
91%
61%
81%
104% 102%99%94%
93%
2006 2007 1Q/07 1Q/08
R evenues EB IT D A N I
27
201020102009200920082008
Ethylene 1,276 KTA
Propylene 437 KTA
HDPE : PTTCH 250 KTA
HDPE : BPE 250 KTA
MEG : TOCGC 300 KTA
Ethoxylates : TEX 50 KTA
VCM : VNT 400 KTA
PP 450 KTA
20112011
New businesses are under development to utilize assets, enhance competitiveness, and diversify risks
1,8991,899
534534
638638
760760
3,8313,831
TotalTotal(MM$)(MM$)
Propylene 50 KTA Ethylene 100 KTA
Ethanolamines 50 KTA
Phenol 200 KTAAcetone 124 KTA
EO DerivativesEO Derivatives $45MM$45MM
Debot I4Debot I4--22 $75MM$75MM
MEG ExpansionMEG Expansion $$5858MMMMMEG 95 KTA
HDPE IRAN JVHDPE IRAN JV $225MM
PhenolPhenol
AN 200 KTAMMA 70 KTA
AN/MMAAN/MMA
Ethylene 1,000 KTA
LDPE 300 KTA
LLDPE 400 KTA
Chlorine Chloride 20 KTA
Propylene 310 KTAPP 300 KTA
PDH/PPPDH/PP
Total ProjectTotal Project$1,300MM$1,300MM
HDPE ExpansionHDPE 250 KTA
Petrochemical: Strategic Roadmap - Integrated Value Enhancers
EO DerivativesEO Derivatives $28MM$28MM
20122012
HDPE 300 KTA
HDPE Expansion : PTTCHHDPE 50 KTA
Ethane CrackerEthane Cracker
LDPE/LLDPE LDPE/LLDPE
$168MM$168MM
BisBis--PhenolPhenol--A (BPA)A (BPA)
BPA 150 KTABPA 150 KTA
Methyl Ester 200 KTAFatty Alcohol 100 KTAGlycerin 31 KTA
$638MM$638MM
$283MM$283MM
$760MM$760MM
$251MM$251MM
Total ProjectTotal Project$170MM$170MM
Grand Total
PS : TSCL 90 KTA
28Note : Data as of 31 Dec 2007
PTT Group represents 35% of total refining capacityPTT Group represents 35% of total refining capacity by equity portionby equity portion
TOP (275 kbpd)(PTT 49.10%)
ESSO (145 kbpd)
RPC (17 kbpd)
BCP (120 kbpd)(PTT 29.75%)
IRPC (215 kbpd)(PTT 31.50%)
SPRC (150 kbpd)(PTT 36.00%)
PTTAR (215 kbpd)(PTT 48.66%)
TOP24%
PTTAR19%
SPRC13%
BCP11%
IRPC19%
ESSO13%
RPC1%
• TOP/SPRC/PTTAR – complex refineries with potential for upgrade & expansion.
• BCP is undertaking “Product Quality Improvement” project to enhance product mix.
Total refining capacityTotal refining capacity~ 1,137 kbpd~ 1,137 kbpd
Refinery Business in ThailandPTT as the strong leadership position, ensures stable supply to downstream and related businesses
29
Integrated Refining & Petrochemical Associated companies
Refining CapacityRefining Capacity
Hydro Skimming 120,000 bpd
Complex RFCCU6
150,000 bpd
Complex HCU, VBU4
215,000 bpd
Complex FCCU1, HCU2, TCU3
275,000 bpd
1) FCCU : Fluid Catalytic Cracking unit 2) HCU : Hydro Cracking Unit 3) TCU : Thermal Cracking Unit4) VBU : Visbreaking Unit 5) DCCU : Deep Catalytic Cracking Unit 6) RFCCU : Residue Fluid Catalytic Cracking Unit7) DWT : Dead Weight Tons
Complex DCCU5
215,000 bpd
Ethylene 360 KTAPropylene 312 KTA HDPE 140 KTAPP 475 KTA
BZ 114 KTATL 132 KTAMX 121 KTA
PX 540 KTABZ 307 KTACX 200 KTAMX 76 KTA
Power plant 108 MW
IPT 700 MWTP 118 MWPX 489 KTA
MX 90 KTABZ 177 KTATL 144 KTA
Olefins Olefins Aromatics Aromatics Power Power Others Others
TLB : 270 KTA TM : 30,000 DWT7
IRPC OilTHAI ABS
IRPC Polyol: 25 KTA
1,063 oil stations
Enhance group synergies with world class assets
PTT Group refineries represent 86% of 1,137 KBD capacity in Thailand
Company(PTT Stake)
(49.10%)
(48.66%)
(33.69%)
(29.75%)
(36.00%)
30
SPRC 150 kbpd (PTT 36%)
17,415
3,0698,325 2,1322,1926,19512,236
1,976
10597101103
2006 2007 1Q/07 1Q/08PTTAR 215 kbpd (PTT 48.66%)
Refining Associates : Solid Performance Driven by Strong GRM Despite Impact from Baht Appreciation
5,805
24,577
8,372
29,030
3,87419,17617,659
5,943
10010496
106
2006 2007 1Q/07 1Q/08
EBITDA NI %Utl
26,588
5,694
17,457
2,7604,06513,248
18,018
1,488
10597103105
2006 2007 1Q/07* 1Q/08
2,1359,303
3,033
13,500
1,62812,986
6,822 2,758
8466
88 87
2006 2007 1Q/07 1Q/08
TOP 275 kbpd (PTT 49.10%)
BCP 120 kbpd (PTT 29.75%)
IRPC 215 kbpd (PTT 33.69%)
Unit : MMBaht
11.5
8.37.7
12.9
7.8
02468
101214
1Q/07 2Q/07 3Q/07 4Q/07 1Q/08
GRM ($/bbl)
Weighted Average GRM of PTT’s associates’ complex refineries
2007 (avg)1010
1,5591,613277
3,977
8531,764196 -42
5147 5544
2006 2007 1Q/07 1Q/08
* Pro-forma financial information for 1Q/2007 of ATC and RRC as amalgamated on 1 January 2008
+ 8% YoY-36% QoQ
PTT Group represents 35% of total refining capacity by equity portion
31
~ 215,000 bpd
PTT
AR
PTT
AR
1,855AR2 (ATC1) Efficiency
Improvement
Grand Total
1,345~ 215,000 bpdHDPE Compound_PipeProject Cost $ 13 MM
ABS ExpansionProject Cost $ 17 MM
Propylene BoosterProject Cost $ 50 MM
EURO IVProject Cost $ 360 MMPetroleum Improv.
Project Cost $ 620 MMJetty ImprovementProject Cost $ 46 MM
Power Plant 200MWProject Cost $ 200 MM
Safety & Lay out Improv.Project Cost $ 39 MM*
IRP
C*
IRP
C
20072007 20082008 20020099 20102010 20112011 20201212
New businesses are under development to utilize assets, enhance competitiveness, and diversify risks
399~ 120,000 bpdPQI Project
VDU 35 KBD & HCU 25 KBD
Project Cost $378 MM
BC
PB
CP
TotalTotal(MM$) (MM$)
4,290
TOP
TOP Ethanol Project (JV)
200,000 Litre/Day(Project Cost $60 MM)TOP invest = $18 MM
TLB SpecialtiesProject Cost $61 MM
EURO IVProject Cost $100 MM
Expansion (TPX)PX 348 to 489 KTAMX 72 to 90 KTA
BZ 177 KTATL 144 KTA
Project Cost $ 282 MMSBM Expansion
Project Cost $ 150 MMTOP’s Marines (5 Fleets)
Project Cost $ 80 MM
~ 275,000 bpd 691
Refining CapacityRefining Capacity
Note : *IRPC’s plans are subjected to further study and approval
Refining Strategic Roadmap : Integrated Value Enhancers
Project Cost $ 27 MM
Synergy Proj. Ph. I CRS (Upgrading#1)Condensate Tanks
FEED FLEX. Project Cost $ 251MM
AR3 (ATCII) :AR3 (ATCII) :+65+65 KBD ; PX 616 KTA;
BZ 363 KTA; Toluene 60 KTA Project Cost $938MM
Compli. & Environment (Upgrading#2)
for EURO IVProject Cost $ 422 MM
Synergy Synergy ProjProj. Phase II. Phase IICRS Expansion
PSAReformate Splitter&Sulfolane
Project Cost $ 217 MM
Bio diesel Project (JV) 300,000 Litre/Day
(Project Cost $30 MM)(BCP 70%)
32
ContentsContents
Conclusion
Introduction to PTT
Financial Performance
Activities & Operational Results
About Thailand
33
Consolidated Income Statements
1.99
2.32
(977.33)
(27.28)
8.12
(70.68)(50.09)
6.1160.41
6.82
3.24
(45.67)
0.69
62.39
2.57
6.34
3.27
(2.51)
2.25
26.50
23.21
%YoY
15.16
15.77
-
-
15.77
15.65(100.00)
27.7367.9032.30
17.15
153.36
5.57
7.82
14.04
3.36
11.97
56.46
31.65
71.70
64.55
%YoY
8.05
22,581
22,581
-
-
147435
5,4202,3808,382
34,535
1,653
2,573
7,177
26,303
6,362
32,664
4,847
36,493
261,786
298,279
1Q/2007
34.14
95,582
322
6,682
88,578
2,3743,745
21,6247,692
35,435
150,117
9,925
10,387
19,139
115,920
26,755
142,675
27,781
164,250
1,049,735
1,213,985
2006
34.82
97,804
(2,825)
4,859
95,770
6961,869
22,94612,33937,850
154,976
5,392
10,459
31,080
118,896
28,450
147,346
27,085
167,938
1,327,868
1,495,806
2007
6.679.278.69EPS (per share)
(100.00)-(2,825)Exp./Effect Judgment of Supreme admin. Court
(100.00)-4,451Gain on Disposal of Investment (After Tax)
6.6926,13324,495Net Income
14.27
(19.43)(100.00)
3.8213.203.46
(2.60)
164.23
(2.60)
(13.43)
10.49
(14.16)
5.09
(20.82)
(2.05)
14.55
12.93
%QoQ
22,869
211309
6,6683,530
10,718
41,528
1,585
2,608
8,938
27,359
7,669
35,028
9,295
42,230
391,558
433,788
4Q/2007
26,133
170-
6,9233,996
11,089
40,450
4,188
2,500
7,738
30,229
6,583
36,812
7,360
41,366
448,524
489,890
1Q/2008
NI before Gain and Effect
- PTTCH- Others
EBIT
Contribution Margin
Cost of sales (excl. DD&A)
Shared incomes from assoc.
Gain from FX.
- PTTEP- PTT
Taxation
EBT
Interest expenses
DD&A
EBITDA
SG&A & Exploration exp.
Sales
Unit : MMBaht
With strong commitment to dividend payment
34
329,609 315,143 324,059
174,265261,278 274,073
161,099
234,742 203,62388,219
81,189 99,388
398,652 431,102
219,951220,999
215,556
177,180
272,700 254,485
356,061
753,192
892,351 901,143
• Treasury policy is strictly followed to maintain financial discipline− Net Debt/Equity < 1.0
− Net Debt/EBITDA < 2.0
• PTT ratings are comparable to sovereign ratings− Foreign : Moody’s (A2), S&P (BBB+),
JCR (A-)
− Local : Moody’s (A2), S&P (A-), JCR (A+)
Note : Figures after restatement at ending periods
Other Liabilities
PP&E
Others Non-
currentAssets
OtherCurrent
Assets
L/TLiabilities(incl. due within 1 yr)
Shareholders’Equity
+ 18%+ 18%
14.7
14.1
13.7
0.4 0.4 0.3
0.6 0.50.60.8
1.00.9
2006 2007 1Q/08
Net Debt/EBITDANet Debt/EBITDA
Net Debt/EquityNet Debt/Equity
IBD/EBITDAIBD/EBITDA
ICRICRStrong Financial PositionStrong Financial PositionBalance SheetsBalance Sheets
Unit : Bt mm
+ 1%+ 1%
• De-conso RRC • Recognized BCP,
IRPC under Equity Method
Cash & S-T Invest.
• 3rd pipeline started commissioning
• De-conso. PTTCH
Balance Sheets : Maintained Solid and Secured Financial Position
2006 2007 1Q/08
35Note : Data as of 31 March 2008 (THB/USD = 31.6229, THB/JPY = 0. 318324) Excluding liabilities from finance leases; Cost of debts includes withholding tax
Debt portfolio is structured to natural hedge and minimize financial risksDebt Profile : Control Cost & Manage Risk
Consolidated debt ~Bt215 bn ($6.8 bn)Consolidated debt ~Bt215 bn ($6.8 bn)Debt PortfolioDebt Portfolio
125,518140,253 137,253 139,131
159,523 157,073
43,521
45,094 42,511
73,00453,945 50,906
6,893 7,321
7,033 6,893 7,321
7,033
2006 2007 1Q/08 2006 2007 1Q/08
Yen
USD
THB
PTT86% PTTEP
9%Others
5%
12,418 6,018
52,35466,553
8,097
33,273
7,321
354 367
< 1Yr 1-2 Yr 2-5 Yr > 5 YrPTT THB PTT USD PTT JPY
: TTM ~ 3.8%: DCAP ~ 0.3%HMC ~ 0.3%
ConsolidatedConsolidatedPTT OnlyPTT Only: Cost of debts ~ 5.5%: % fixed-rate ~ 82%: Avg. loan life ~ 7.5 years
: Cost of debts ~ 5.7%: % fixed-rate ~ 88%: Avg. loan life ~ 7.6 years
~ 43% of total loan (Bt82bn) will be repaid within 5 years.
Unit : Bt mm
(33%)
(64%)
(25%)
(71%)
(3%)
(72%)(73%)
(24%)
215,300
192,240
219,168
176,072(25%)(3%)
12,772 6,384
60,451
107,117
(73%)
(24%)(4%)
(73%)
(23%)
(3%)
PTT’s repayment schedule (Company Only)PTT’s repayment schedule (Company Only)
187,086
220,361
(3%)
(4%)
36
ContentsContents
Financial Performance
Introduction to PTT
Conclusion
Activities & Operational Results
About Thailand
37
Conclusion
Supply worries, political problems within the oil producing countries,
production quota imposed by OPEC, the weaken of the USD coupled
with commodity price speculation are key factors to keep oil price
volatile at high level.
Rising oil price supported by the delays of new projects in the Middle
East and Asia will push petrochemical product prices to sustain at
high level.
In 2008, domestic demand of refined products is expected to grow by
0.5-1.5%. Natural gas consumption is expected to expand by 9-10%
while the demand for petrochemicals is likely to grow by 6.0-7.5%.
38
Thank youThank you
PTT Public Company Limited – Capital Market & Investor Relations DepartmentTel. +66 2 537-2792, Fax. +66 2 537-2791, Email: [email protected], http://www.pttplc.com/
39
Create Value Through Business ChainG
asG
asO
ilO
ilP
etro
chem
ical
Pet
roch
emic
al
Crude Oil Crude Oil ProcurementProcurement
Natural Gas
Crude & Condensate
Power Plants
Compressor
Gas Separation Plants
PTTRF
Natural Gas Mix
Gas Products
Electricity
DCS in Airport
NGV
Oil
LPG
Logistics
Petrochemical Plants: Intermediates (MEG, Phenol, etc.) Plastic Resins
Olefins & Aromatics Plants
End Products
Petroleum Products
PipelinePTT Stations
UpstreamUpstream IntermediateIntermediate DownstreamDownstream End CustomersEnd Customers
PTTEP
Trading
Export MarketsExport Markets
PTT Group has strong presence in various sectors throughout the hydrocarbon value chain
Industry
Lube Base Plant
LPG & NGL
NGL
LPG
Olefin gas products
Crude & Condensate
40
Others
Subsidiaries ConsolidatePTT Exploration & Production Plc. PTTEP 65.72%PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00%PTT LNG Co., Ltd. PTTLNG 100.00%Combined Heat and Power producing Co., Ltd CHPP 100.00%PTT International Co., Ltd. PTTINTER 100.00%
Joint Ventures ProportionateTrans 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%
Associates EquityThai Oil Power Co., Ltd. TP 26.00%Independent Power (Thailand) Co., Ltd. IPT 20.00%PTT Utility Co., Ltd. PTTUT 40.00%
Others CostRatchaburi Power Co., Ltd. RPCL 15.00%
Subsidiaries ConsolidatePTT (Cambodia) Co., Ltd. PTTCL 100.00%Subic Bay Energy Co., Ltd. SBECL 100.00%PTT Retail Business Co., Ltd. PTTRB 100.00%PTT Green Energy Pte.Ltd PTTGE 100.00%Retail Business Alliance Co., Ltd. RBA * 49.00%
Associates EquityKeloil-PTT LPG Sdn. Bhd. KPL 40.00%Thai Lube Blending Co., Ltd. TLBC 48.95%Vietnam LPG Co., Ltd. VLPG 45.00%Thai Petroleum Pipeline Co., Ltd. THAPPLINE 33.19%PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00%
Others CostPTT Mart Co., Ltd. PTT Mart 49.00%PetroAsia (Huizhou) Co., Ltd. PA(Huizhou) 25.00%PetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00%PetroAsia (Shantou) Co., Ltd. PA(Shantou) 15.00%Intoplane Services Co., Ltd. IPS 16.67%Fuel Pipeline Transportation Co., Ltd. FPT 2.76%
Others Fair ValueBangkok Aviation Fuel Services Plc. BAFS 7.06%
Petrochemical Subsidiaries ConsolidatePTT Polymer Marketing Co., Ltd. PTTPM 75.00%PTT Polymer Logistics Co., Ltd. PTTPL 100.00%
Associates EquityPTT Chemical Plc. PTTCH 49.30%PTT Phenol Co., Ltd. PPCL 40.00%IRPC Plc. IRPC 33.69%Nptc Maintenance & NPTC 40.00% Engineering Services Co.,Ltd
Joint Ventures ProportionateHMC Polymers Co., Ltd. HMC 41.44%PTT Asahi Chemical Co., Ltd. PTTAC 47.50%
Refining Associates EquityThaioil Plc. TOP 49.10%PTT Aromatics and Refining Co., Ltd. PTTAR 48.66%Star Petroleum Refining Co., Ltd. SPRC 36.00%Bangchak Petroleum Plc. BCP 29.75%
Others Fair ValueDhipaya Insurance Plc. TIP 13.33%
Subsidiaries ConsolidateEnergy Complex Co., Ltd. EnCo 50.00%
International Trading Business GroupSubsidiaries ConsolidatePTT International Trading Pte. PTTT 100.00%
Oil Business GroupE&P and Gas Business Group
* Remark : PTT’s subsidiaries that PTT holds less than 50% is consolidated because PTT has the power to control the financial and operating policies.Data as of 31 March, 2008 : 147 Total affiliates (Direct 45 ; Indirect 102)
Petrochemicals & Refining Business Group
Associates EquityPTT ICT Solutions Co., Ltd. PTTICT 20.00%
41
Source: EPPO
0
500
1000
1500
2000
2500
3000
3500
2007 2009 2011 2013 2015 2017 2019 2021
Oil41%
Gas
Coal/ Lignite
Hydro
39%
18%
2%
35%
43%
18%
2%Nuclear
’000 GWh
0
50
100
150
200
250
300
350
2007 2009 2011 2013 2015 2017 2019 2021
66% 63%
Coal/LigniteNuclearHydro
Oil
CAGR 5 %
CAGR 6%
20%5%
3%
15%
9%10%
‘08-’12 : Demand Growth ~1,400 MW p.a. ‘13-’21 : Demand Growth ~2,100 MW p.a.
75%
Natural Gas
Decreased dependence on oil, while natural gas expected to become major source of energy supply
Power demand continues to grow with diversification of energy fuel mix.
(Revised PDP 2007, call for more Coal/ Hydro Import)
Source: PDP 2007
Note : Base on GDP growth 4.5% p.a.
15%8%
6%
2%
3%Other
Commercial Primary Energy Demand
Commercial Primary Energy Demand Power DemandPower Demand
Energy consumption forecast (CAGR during 2008-2021): Total ~ 5%: Oil ~ 3%: Gas ~ 6%: Coal ~ 5%: Hydro ~ 4%
Decreased dependence on oil, while natural gas expected to become major source of energy supplyEnergy Consumption : Growing Along with Economic Expansion
KBOED
1,6271,627
3,1133,113
150150197197
3263262%
42
Natural Gas : Strong and Increasing Demand over Long TermNatural gas is a fuel of choice for power producers and increasingly transportation industry
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2,000 2,003 2,006 2,009 2,012 2,015 2,018 2,021
mmscfd
Source : PTT – based on PDP 2007
PowerPower
GSPGSP
IndustryIndustry
77%77%
17%17%
8%8%
1,9701,970
3,6113,611
6,8516,851
13%13%
14%14%
18%18%
70%70%
68%68%
Gas demand forecast (CAGR during 2008Gas demand forecast (CAGR during 2008--2021)2021): Total ~ 5%: Total ~ 5%: Power ~ 4%: Power ~ 4%: GSP ~ 5%: GSP ~ 5%: Industry ~ 7%: Industry ~ 7%
15%15%
43
Gas Demand OutlookGas Demand Outlook
Strategic Roadmap : Core Value Creators
0
1,000
2,000
3,000
4,000
5,000
6,000
2007 2008 2009 2010 2011 2012
Industry 20%
GSP 20%
Power 60%
CAGR (2008-2012) ~ 10%
Infrastructure is under expansion to enhance capability to meet rising gas demand
72%
17%11%
Unit : mmscfd
PipelinePipeline
Project Completed
~ 4,380
~4.1 GSPGSP
~ 5,580
~4.1
Off-shore Compressor
~ 5,580
~6.7
~ 6,980
~6.7
~ 6,980
~6.7
Additional Additional Source Source
of Supplyof SupplyArthit
JDA A18JDA B17 LNG
Bongkot SouthM9
(Potential)
GSP#6 Ethane Plant
Pipeline Capacity
~ 4,380 mmscfd
Project Completed
3rd Pipeline ph2 4th OnshorePipeline
Production Capacity~ 4.1 mta
Note : Pipeline capacity include onshore pipeline to Namphong field of 140 mmscfd ; Board approval data as of December 2007
44
Natural Gas Price Structure
CustomersCustomersSales Price StructureSales Price Structure
Gas Pool PriceGas Pool Price Supply MarginsSupply Margins Pipeline TariffsPipeline Tariffs+ +
Power Producers ~ 70%Power Producers ~ 70%
: EGAT ~ 27%: EGAT ~ 27%
: IPP ~ 29%: IPP ~ 29%
: SPP ~ 14%: SPP ~ 14%
Average Purchased Average Purchased Gas PriceGas Price
1.75%1.75%
1.75%1.75%
9.33%9.33%
~ 19.4 Bt/~ 19.4 Bt/MMBahtuMMBahtu
GSP ~ 18%GSP ~ 18% Charged at the same price structure of power producersCharged at the same price structure of power producers
Petrochemicals
LPG
Profit-sharing mechanism based on market prices of petrochemicals
Reference to Saudi Aramco’s contract price
Industry ~ 12%Industry ~ 12% Charged at prices comparable to fuel oilCharged at prices comparable to fuel oil
Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns.
NGVNGV Charged at prices competitive to dieselCharged at prices competitive to diesel
• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions.
• The current pipeline tariff of 19.4 Bt/MMBahtu is charged to cover fixed costs and provide agreed returns of 18% IRROE and expected to be revised
Note : 1Q/2008 data
45
Unit : MM Baht 1Q/2007 4Q/2007 1Q/2008 YoY QoQ
Net Income (PTT Only) 12,541 13,550 17,153 4,612 3,603 Less: Devidend Received (3,735) (80) (5,318) (1,583) (5,238)
Gain from Investment Disposal - (7,702) - - 7,702 Add: Exp. From Judgment of
Supreme Admin. Court2,825
Net Operating Income (PTT only) 8,806 8,593 11,835 3,029 3,242 E&P - PTTEP 4,387 4,229 6,008 1,621 1,779 Petrochem - PTTCH 1,346 3,955 2,775 1,429 (1,180)
- ATC 1,221 59 - (1,221) (59) - HMC, PPCL, PTTPL, PTTPM, etc. 271 173 278 7 105
2,838 4,227 3,053 215 (1,174)Refinery - TOP 2,873 1,972 1,841 (1,032) (131)
- PTTAR - 2,239 678 678 (1,561) - RRC 926 - - (926) - - SPRC 760 1,505 704 (56) (801) - IRPC 1,227 291 1,208 (19) 917 - BCP (19) 117 259 278 142
5,767 6,124 4,690 (1,077) (1,434)
Gas - TTM, PTTNGD, PTTINTER, etc. 499 (31) 481 (18) 512
Oil & Others - PTTRB, PTTT, PTTGE, etc. 276 (273) 66 (210) 339 Total Share of Net Income from Affiliates/JV 13,767 14,276 14,298 531 22 Add: Gain from Investment Disposal - 4,451 - - (4,451)Less: Exp. From Judgment of
Supreme Admin. Court(2,825)
Net Income (Equity Method) 22,573 24,495 26,133 3,560 1,638
Net Income (Equity Method)
46
Performance Highlights in 1Q/2008
PTT• On February 1, 2008, PTT and the Treasury Department have signed the MOU for the
rental of assets transferred to the MOF, rental fee of which is calculated based on the revenue sharing concept. The annual rental charge will be at the minimum and maximum of Baht 180 and 550 mm respectively.
• On April 24, 2008, PTT and MOF have signed the Memorandum for the Separation and Delivery of Assets Separated to the MOF in order to confirm and acknowledge officially that the MOF has received assets of the Petroleum Authority of Thailand which have been separated under the Supreme Administrative Court’s verdict at the book value as of Sep 30, 2001 of ~Baht 16,175 mm
E&P and Gas Business• On February 3, 2008, PTT and Qatargas Operating Company Limited have signed the HOA
for the purchase of LNG in the total volume of 1 million tons per annum • PTTEP : started up production from the Arthit Project on March 26, 2008 at 80 mmscfd
and reached the DCQ of 330 mmscfd on April 25, 2008
47
Performance Highlights in 1Q/2008 (Continued)
Petrochemical and Refining Businesses• On March 24, 2008, PTT, Asahi Kasei Chemicals Corporation (AKCC) and Marubeni have
signed the Shareholders Agreement for joint investment in Acrylonitrile (AN) and Methyl Methacrylate (MMA) projects with the shareholding structure of 48.5%, 48.5% and 3% respectively. Total project cost is ~US$760 mm with 200 KTA of AN and 70 KTA of MMA capacity
• PTTCH : shutdown of Olefins Plant I4-1 for 12 days• Thai Oleochemical Co., Ltd., PTTCH’s subsidiary, has started commercial operation of its
Methyl Ester in February 2008 with nameplate capacity of 200 KTA• PTTAR : partial shutdown for 6 days (Jan 19-24) for Heat Exchanger efficiency
improvement at the Condensate Splitter Unit• TOP : PX production unit shutdown (TPX) since Jan 14, 2008 for expansion and major
turnaround• BCP : scheduled shutdown of CDU and related units for maintenance during Jan 25 – Feb 7
48
Cash Flow (Company Only) : Jan – Mar 2008
OperatingOperating 25,16925,169
Net Income & nonNet Income & non--cashcashAdjustmentAdjustment
16,101*16,101*
Changes in assets Changes in assets & liabilities& liabilities
9,0689,068
CAPEX & INVESTMENTCAPEX & INVESTMENT (7,084)(7,084)
CAPEX (PP&E)CAPEX (PP&E) (7,702)(7,702)Investment in Affiliates.Investment in Affiliates. (13,464)(13,464)
Free Cash FlowFree Cash Flow
18,08518,085
FinanceFinance (6,355)(6,355)
Bond & L/T LoanBond & L/T Loan
OthersOthers 12,45712,457
9090
Share IssuedShare Issued 214214
REPAYMENTREPAYMENT (4,500)(4,500)
Cash in (Out)Cash in (Out)
11,73011,730
Beginning Cash & Beginning Cash & Cash Equivalents Cash Equivalents
43,18543,185
Ending Cash & Ending Cash & Cash EquivalentsCash Equivalents
54,91554,915
Unit : MMBaht
OthersOthers (2,159)(2,159)
Note : *Including effect of exchange rates on cash and currency transtation differences
Dividend receivedDividend received 1,6251,625
Dividend paidDividend paid --
49
Dividend Policy & Historical Payments
7.71 8.75
13.43
22.40
30.57
34.82
2.50 2.85 4.006.75
9.2510.50 11.50
34.14
32.4% 32.6%
29.8% 30.1% 30.3% 30.8%33.0%
25%
2001 2002 2003 2004 2005 2006 2007
EPS DPS % Dividend Payout
PTTPTT’’s minimum payout ratios minimum payout ratio
PTT is firmly committed to pay dividend at no less than 25% of net income
UNIT : Baht / shareUNIT : Baht / share
50
Reference : Product Prices
1/ Source : PLATT'S SARUS2/ Source : ICIS (http://www.icislor.com/)
5%27.4%33.3731.7529.2629.5626.2025.7928.8728.7724.65: ULG 95
10%53.8%105.1295.7981.6785.6868.3464.2977.5383.5667.15: ULG 95 – MOP’s
1%60.8%1,4481,4331,020963900940957863870: MEG (ICIS – ICIS – SEA SP)
11%63.3%114.36102.5887.2881.2670.0566.9777.7784.3567.49: HSD – MOP’s
10%55.2%104.2994.580.5984.8267.1963.4676.6782.8466.22: ULG 91 – MOP’s
10%64.9%91.3883.1970.0864.7955.4144.1051.6354.4051.50: Fuel Oil – MOP’s
Refined Products (US$/bbl)
6%59.7%805761621593504506587585530: Condensate (ATC)
Petrochemicals (US$/ton)2/
8%68.9%97.9290.6675.4964.8957.9959.9970.6070.3063.32: WTI
10%64.9%91.3783.1970.0864.7955.4157.3565.9764.7758.02: Dubai
4%27.4%32.2130.8528.4628.7625.2824.9928.0727.9725.91: ULG 91
12%18.9%29.3726.2525.7626.0624.7024.2927.3727.2725.21: Gasohol
Refined Products (retail Bt/Litre)
4%28.2%29.7228.5025.8725.1723.1823.8927.1226.5626.71: HSD
Feedstocks (US$/ton)
5%7.4%1,1241,0681,1111,1761,0471,1121,2601,007947: Paraxylene (ICIS – ACP Net)
4%7.6%1,0521,0081,0061,084978958905862742: Benzene (CMAI – FOB Korea)
8%19.5%1,5101,3941,3731,2981,2641,2721,3661,1871,112: PP (ICIS – Film/SEA SP)
10%26.9%1,6071,4621,3831,2991,2661,2721,3471,1991,114: HDPE (ICIS – Film/SEA SP)
13%26.0%1,6051,4241,3541,2891,2741,2671,3291,1791,116: LLDPE (ICIS – Film/SEA SP)
8%32.3%1,7111,5821,5021,3421,2931,2731,3401,1911,116: LDPE (ICIS – Film/SEA SP)
11%9.4%1,2931,1641,1281,1421,1821,1571,2551,0811,006: Propylene (ICIS – SEA SP)
7%1.2%1,2371,1561,2031,1401,2221,1611,3111,1201,045: Ethylene (ICIS – SEA SP)
8%50.5%793735621619527525483550485: Naphtha (MOP Singapore)
10%58.1%833756583569527477537457578: LPG (Saudi Aramco’s CP)
Crude (US$/bbl)/1
(4%)(8.8)%32.559134.058834.173634.807735.707736.701937.786938.224239.4190FX – THB/USD (Daily Average)
(7%)(10.0)%31.622933.885034.385134.667935.135436.230837.637338.329538.9417FX – THB/USD (@ end period)
%QoQ%YoY2008
1Q4Q3Q2Q1Q4Q3Q2Q1Q
20072006