1

ANALYST MEETING

18 February 2020

2019 & 4Q19 Highlight

Agenda

Industry Outlook

Operation & Financial Performance

CEO Agenda

Global crude oil price situation

45

50

55

60

65

70

75

80

85

90

Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20

Dubai

2 Jan' 19OPEC+cut 1.2 mbd till 1H19

28 Jan' 19U.S. imposesanctions on PDVSA

9 May' 19U.S. increase China' s

products tariff

1 Jul' 19OPEC+ extend cut 1.2 mbd to Mar' 20

6 Dec' 19OPEC+ will cut 1.7 mbd in 1Q20 increased from 1.2 mbd

1 May' 19U.S. impose sanctions on Iran

18 Jun' 19U.S. and China back to

trade negotiation on G20 summit

14 Sep' 19Aramco drone attacked

13 Dec' 19U.S and China areagreed on Phase 1 deal and will sign on Jan' 20

Dec' 19Covid-19 Virus detected in Wuhan City, Hubei Province of China

$/bbl

Trade War

Environmental Concern

Monetary Policy

New Supply

Middle Eastern

Conflicts

2019 Global threat

Reversal of impairment

2019 Highlights

Lowlight

Highlights

Catalyst Cooler COD since May 2019

VLSFO production since Jul 2019

The implementation of IRPC 4.0 :Ekon, Price Algorithm, Control Tower

Lowlight

iPolymer Platform go livewww.plastket.com

Monetize Idle Asset – BankhaiJV: IRPC & WHA IER

Specialty product proportionFrom 51% (2018) to 55% (2019)

Commodities and Financial Hedgings

Shutdown PlantRDCC & ADU1

Employee Compensation(300 days => 400 days)

Polymer specialties

55

60

65

70

75

80

85

Brent Dubai

30

31

32

33

34

Key Drivers

Trade war tension & additional supply pressured products spread

6

Crude Oil Price (avg)

Gross Refining Margin (GRM)

Foreign Exchange (avg)

Product to Feed Margin (PTF)

Unit: $/bbl Unit : THB/USD

5.9

3.4

1.7

5.2

2.5

4Q18 3Q19 4Q19 2018 2019

7.1

5.5

3.8

7.3

5.1

4Q18 3Q19 4Q19 2018 2019

Unit: $/bbl Unit: $/bbl

YoY 71%

QoQ 50%

YoY 46%

QoQ 31%

31.7 32.1 33.2 33.0 31.8

Dubai QoQ 2%

Dubai YoY 8%

QoQ appreciated 1%

YoY appreciated 8%

31.8

YoY 52% YoY 30%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

Brent (avg) 66.8 74.4 75.3 67.8 63.2 68.8 61.9 63.2

Dubai (avg) 63.9 72.1 74.3 67.4 63.5 67.4 61.2 62.11Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

30.9 30.5

Financial Highlight: 2019 & 4Q19 performance

64,233 54,264 50,337

258,919 216,577

QoQ 7%

YoY 22%

Overview of Business

Net Sales(net excise tax)

Dubai (Avg.)

Unit: $/bbl

Net IncomeUnit: MB

Unit: MB

YoY 68%

QoQ 61%

EBITDA

Unit: MB

534 738 543

18,344

5,940

QoQ 26%

YoY 2%

Petroleum Petrochemical Utilities and Others

Net Sales(net excise tax)

EBITDA

Net income

Market GIM ($/bbl)

67.461.2 62.1

69.463.5

Crude run KBD

Acct. GIM ($/bbl)

7

Net Stock G/(L)($/bbl)

YoY 115%

YoY 68%

YoY 16%

Net Income

208 193 190 208 197

2018

14.09 10.15 6.76 13.60 8.70

(7.51) (2.43) 1.38 (0.50) 0.27

6.58 7.72 8.14 13.10 8.97

2019

4%

59%

37%

71%

28%

1%

216,577MB

5,940MB

30%

58%

12%

71%

28%

1%

258,919MB

18,344MB

Operating NI

3,217

(112)(2,240)

8,859

(2,982)(1,627) (1,321)

(513)

7,735

(1,174)

4Q18 3Q19 4Q19 2018 2019

(4%)

(220%)

83%20%21%

100%

(1,174) MB7,735 MB

Achievement in 2019

8

Investment in Plastic Product E-Commerce Business

● IRPC Join Guangzhao Saiju Performance Polymer Ltd.

in the People’s Republic of China (PRC)

IRPC 55% GZSJ 45%

● Plastic E-Commerce Platform “PLASTKET.COM”

“Silver Class Sustainability Awards 2019”

Oil & Gas Refined and Marketing Industry

Dow Jones Sustainability Indices (DJSI) Member For the sixth consecutive year

By SAM

Sustainability Awards of Honor and selected as one of the

Thailand Sustainability Investment :THIS 2019

By The Stock Exchange of Thailand (SET) in collaboration

with the Money and Banking Magazine

The Prime Minister’s Industry Award 2019

By Ministry of Industry

Awards

Human Rights Awards 2019

By Rights and Liberties Protection Department

Commercial

Very Low Sulfur Fuel Oil : VLSFO

(IMO 2020 Regulation)

By IMO International Maritime Organization : IMO

Production since Jul 2019

2019 & 4Q19 Highlight

Agenda

Industry Outlook

Operation & Financial Performance

CEO Agenda

2.3 1.3

1.1

35.0 32.9

9.9 9.6

3.0 3.52.3 2.1

7.0 6.9

59.6 57.4

2018 2019

Lube

LPG&Other

Naphtha&ReformateGasoline

Diesel&JetOilVLSFO

HSFO0.5 0.3 0.1 0.2 0.9

8.9 7.8 8.1

2.6 2.6 2.3

0.9 0.9 0.5

0.6 0.6 0.5

1.7 1.7 1.8

15.314.2 14.0

4Q18 3Q19 4Q19

4,981 4,059 3,823 19,229 16,781

40,924 34,136 32,193 163,724 136,670 Refinery

45,905 38,195 36,016 182,953 153,451

208 193 190 208 197

15.4 14.9 14.0

60.8 58.0 1.7 1.7 1.7

7.0 6.9

17.2 16.6 15.7

67.8 64.9

4Q18 3Q19 4Q19 2018 2019

Lube Base

Refinery

3.2 3.6 5.1 3.2 3.5

4.4

2.1

0.1

3.5

1.1

1.6

1.3

1.6

1.7

1.3

5.9

3.4

1.7

5.2

2.5

4Q18 3Q19 4Q19 2018 2019

Lube Base

Refinery

4Q18 3Q19 4Q19 2018 2019

Petroleum Group2019: Dropping products spread led to lower GRM4Q19: The sharply increase in freight cost & crude premium towards the ME conflicts resulted in squeeze GRM

10

Crude Intake

GRMSales Volume & Revenue

Production

69% 72% 68% 66% 69%

31% 28% 32% 34% 31%

4Q18 3Q19 4Q19 2018 2019

Sweet Crude

Sour Crude

97% 90% 89% 97% 92% % U-Rate

Premium over Dubai ($/bbl)

65% 70% 68% 63% 68%

13%19% 16% 15% 17%8%7% 6% 8% 6%

14%4% 10% 14% 9% Others

Domestic

Far East

Middle East

Crude Run (KBD)

YoY 8%

QoQ 5%

YoY 22%

QoQ 6% Revenue

YoY 4%

YoY 16%

Petroleum

Lube Base

Crude intake (Mbbl)

Unit : $/bbl

Unit : Mbbl

Unit : Mbbl

19.1 17.7 17.5

76.1 72.0Sales Volume

Unit : MB

YoY 9%

QoQ 2% YoY 5%

YoY 9%

QoQ 1% YoY 4%

97% 90% 89%

84% 79% 84%

110% 113% 112%

YoY 71%

QoQ 50% YoY 52%

97% 92% % Utilization

85% 82% Lube Base

99% 102% RDCC

103 96 91 400 395

5 6

28 9 88 78 88

338 300

76 61 53

295 246

215 224 199

807 828

488 464 431

1,868 1,777

4Q18 3Q19 4Q19 2018 2019

Polyolefin

Olefin

Polystyrenic

Styrenic

Aromatic

2019 : Petrochemical revenue was Bt 60 bn

YoY : 18% decrease from 17% price decrease & 1% volume decrease

2019 Market PTF was $5.1/bbl:

YoY : $2.3/bbl decrease as lower products spread through trade war tension

2.6 1.7 1.3 2.6 1.5

4.53.8

2.5

4.73.5

7.15.5

3.8

7.3

5.1

4Q18 3Q19 4Q19 2018 2019

Olefins

Aromatics &Styrenics

Petrochemical Group2019 & 4Q19: According to Trade War, products spread dropped caused the decrease PTF

11

Production

PTF

Sales Volume and Revenue

176 175 169 728 702 278 299 266

1,107 1,117

454 473 434

1,835 1,819

4Q18 3Q19 4Q19 2018 2019

Olefins &Polyolefins

Aromatics &Styrenics

QoQ 8%

QoQ 12% Revenue

4Q18 3Q19 4Q19 2018 2019

YoY 4%

YoY 23%

17,475 15,250 13,427 72,740 59,656

10,815 9,872 8,277 43,980 37,671

6,660 5,378 5,150 28,760 21,985

YoY 1%

YoY 18%

Petrochem

Olefins

Aromaitcs &Styrenics

Unit : KMT

4Q19 : Petrochemical revenue was Bt 13 bn QoQ : 12% decrease from 4% price decrease & 8% vol. decrease YoY : 23% decrease from 19% price decrease & 4% vol. decrease

4Q19 Market PTF was $3.8/bbl:

QoQ : $1.7/bbl decrease as lower products spread

YoY : $3.3/bbl decrease as lower products spread

Crude intake (Mbbl)

Unit : $/bbl

Unit : KMTSales Volume

Unit : MB

YoY 12%

QoQ 7% YoY 5%

YoY 46%

QoQ 31% YoY 30%

98% 101% 90%

95% 99% 88%

101% 103% 92%

104% 96% 96%

98% 81% 95%

113% 107% 104%

106% 102% 92%

19.1 17.7 17.5

76.1 72.0

94% 95% % Utilization

90% 92% Polyolefins

100% 98% Olefins

101% 93% % Utilization

93% 83% Polystyrenics

110% 94% Styrenics

103% 101% Aromatics

507 494 531

1,947 2,071

284 263 303

1,034 1,153

62 62 60

245 246

853 819 894

3,226 3,470

4Q18 3Q19 4Q19 2018 2019

Other

Steam

Electricity

2019 U-Rate of Steam was 60%; 19%

2019 U-Rate of Electricity was 71%; 8%

YoY : decrease due to the planned shutdown of RDCC plant

2019 : Power & Utility revenue was 3,470 MB

YoY : 8% increase from higher electricity sales vol. & avg. selling prices of steam

Power & Utility 2019: U-Rate of power & utility declined owing to the planned shutdown of RDCC plant4Q19 : Revenue of power & utilities increased from higher sales volume to EGAT

12

Utilization Rate

GIM

Revenue

QoQ 9%

YoY 5%

4Q19 U-Rate of Steam was 60%; Unchanged QoQ, 23% YoY

4Q19 U-Rate of Electricity was 71%; 2% QoQ, 9% YoY

QoQ & YoY : decrease owing to maintenance shutdown of power generator during 4Q19

4Q19 : Power & Utility revenue was 894 MB QoQ & YoY : increase mainly from higher electricity sales vol. to EGAT &

higher steam vol. to IRPC Industrial zone

1.08 1.20 1.24 1.08

1.19

4Q18 3Q19 4Q19 2018 2019

Power & Utility

Unit : $/bbl

Unit : MB

80% 73% 71%79% 71%

4Q18 3Q19 4Q19 2018 2019

Electricity

83%60% 60%

79%60%

4Q18 3Q19 4Q19 2018 2019

Steam

YoY 15%

QoQ 3% YoY 10%

YoY 23%

QoQ - Unchanged YoY 19%

YoY 9%

QoQ 2% YoY 8%

YoY 8%

Accounting GIM

2019 Acct GIM was $9.0/bbl,

YoY: $4.1/bbl due to $0.3/bbl net stock gain compared to net stock loss of $0.5/bbl in 2018 & $4.9/bbl lower market GIM

4Q19 Acct GIM was $8.1/bbl,

QoQ: $0.4/bbl due to $1.4/bbl net stock gain compared to net stock loss of $2.4/bbl in 3Q19 VS $3.4/bbl lower of market GIM

YoY: $1.6/bbl due to $1.4/bbl net stock gain compared to net stock loss of $7.5/bbl in 4Q18 VS $7.3/bbl lower market GIM

2.6 1.7 1.3 2.6 1.5

4.5 3.8

2.5

4.7 3.5

7.1 5.5

3.8

7.3

5.1

Aromatics&Styrenics Olefins

14.1 10.2 6.8 13.6

8.7

(7.4)(2.1)

0.7

(0.5) (0.03)

(0.1)(0.3)

0.7 0.01

0.3 6.6

7.78.1

13.1 9.0

Market GIM Stk G/(L) & LCM Hedging

5.9 3.4 1.7

5.2 2.5

7.1

5.5 3.8

7.3

5.1

1.1

1.2

1.2

1.1

1.2

14.1

10.2

6.8

13.6

8.7

Petroleum Petrochem Power & Utility

2.9 2.1 0.1 3.5

1.1

1.5 1.3

1.6

1.7

1.3

4.3 3.4

1.7

5.2

2.5

3Q18 3Q19 4Q19 2018 2019

Refinery Lube Base Oil

3,732 1,879 931 12,858

5,504 4,469 3,028 2,014

18,085

11,379 678 656 660

2,663

2,672 8,879 5,563 3,605

33,607

19,555

4Q18 3Q19 4Q19 2018 2019

8,879 5,563 3,605

33,607

19,555

(4,650) (1,172)

363

(1,268) (62)(78)

(161)

373

30

676 4,151

4,230 4,341

32,370

20,169

4Q18 3Q19 4Q19 2018 2019

Market GIM

Unit: $/bbl

Accounting GIM

Unit: $/bbl

Unit: MB

Market GIM by business

Unit: $/bblPetrochemical

Petroleum

Unit: MB

Gross Integrated Margin (GIM)2019: The market downturn towards global threaten had led to the decline in MKT GIM4Q19 : Hedging management supported A/C GIM

13

YoY 52%

QoQ 33% YoY 36%

YoY 24%

YoY 32% QoQ 5%

YoY 59%

QoQ 35% YoY 42%

YoY 5%

YoY 38% QoQ 3%

Market GIM

2019 Market GIM was $8.7/bbl,

YoY: $4.9/bbl due to lower products spread

4Q19 Market GIM was $6.8/bbl,

QoQ: $3.4/bbl due to lower petroleum spread & higher crude premium

YoY: $7.3/bbl due to higher crude premium & lower products spread

(1,321) 1,333

166 100 427 115 175 736

9911241,282

762 30259

319460

(2,240)

(513)(112)

Operating Net Income: 4Q19 vs 3Q19

14

Uncontrolled Controlled

Operating Income – n.a.

Net Income 61% (1,321) (513)

(112) (2,240)

Unit: MB

Net Income4Q19

(effective Tax rate = 0%)

Net Income 3Q19

(effective tax rate = 0%)

Volume DecreaseMargin

Decrease

Income Tax

Decrease

OPEX +Selling Exp.

Others(Port&Tank

/Depre/FX loan/

Take equity)

Stock Gain& Hedging

+LCM

FX. EffectNon

Operating Items

Operating Income 3Q19

NonOperating

Items

Operating Income 4Q19

Crude Premium

Stock Loss& Hedging

+LCM

Fuel Loss & Internal

UsedControllable

UHV+PPE+PPC

Everest + E4E

Fuel Loss & Internal

Used(Exl. UHV)

(2,240)

Operating Net Income: 2019 vs 2018

15

Operating Income 134%

Net Income 115% 7,735 (1,174)

8,859 (2,982)

Unit: MB

Volume Decrease

Margin Decrease

Income Tax

Decrease

OPEX +Selling Exp.

Others(Depre/FX loan/

Take equity)

Stock Gain& Hedging

+LCM

FX. Effect

NonOperating

Items

Operating Income

2018

NonOperating

Items

Operating Income

2019

Crude Premium

Stock Loss& Hedging

+LCM

Fuel Loss & Internal

UsedControllable

UHV+PPE+PPC

Everest + E4E

Fuel Loss & Internal

Used(Exl. UHV)

Net Profit2019

(effectiveTax rate =

0%

Net Profit2018

(effectiveTax rate =

14%

7,735 59 1,065

1,575 901,136 117 1,430 664

6141,194

13,525

72535 1,117

1,604(2,982)

8,859

(1,174)

(2,982)

Uncontrolled Controlled

(1,174)

0.95 1.01 0.95

4Q18 3Q19 4Q19

0.63 0.69 0.67

4Q18 3Q19 4Q19

125,965 121,991

9,852 12,212

44,291 40,611

2,338

3,036

87,380 83,402

2,609 4,860

50,665 52,071

41,792 37,517

Financial PositionThe THB strengthen caused a drop in financial position

16

Maturity of Long-term Debt

Debt ProfileStatements of Financial Position

Cash Flow

Unit : MB

Remark: Long-term debt as at 31 Dec 2019

Unit: MB

PP&E

Other Non-CA

Cash

Other CurrentLiabilities

LT Liabilities incl. current port.

Shareholders’Equity

Dec. 2019Dec. 2018

Other CA

Other Non-CurrentLiabilities

Beginning Cash

1 Jan 2019

Ending Cash31 Dec 2019

Cash Flow from

Operating

Unit: MB

Cash Flow from

Investing

Cash Flow from

Financing

Net Debt = 55,935 MB

Ex. Rate = 30.33 Baht/$

Financial Ratios

< 1.0x

Net D/E CA/CL

182,446 177,850Interest Rate Currency

Float 78% THB 74%

Fixed 22% USD 26%

3%

6,364 6,442 6,941 6,764 12,651 1,806 - 1,204 1,204

1,806

- 6,888 - -

-8,170

13,330 8,146 7,968

14,457

2020 2021 2022 2023 >2023

THB Bond

USD Loan

THB Loan

ST Loan12%

LT Loan (USD)10%

LT Loan (THB)66%

Bond (THB)12%

2019 & 4Q19 Highlight

Agenda

Industry Outlook

Operation & Financial Performance

CEO Agenda

IMO: Gas oil use in bankers only slightly less than expected in 4Q19.

Asia VLSFO balance Asia’s VLSFO production ~ 505 KBD

FGE 2020

Platt s2020

18

Petrochemical Outlook : Polypropylene

Polypropylene world operating rate

Previous forecast

World : Addition Capacity

Regional Polypropylene Net Trade

2018 IHS Markit

Polypropylene Per Capita Consumption

19

>80%

World’s per capita Consumption at 9.9 kg up from 9.6 kg in 2018Is expected to reach 11.6 kg by 2024

World

Mainly export from ME to Asia

Global operating rates averaged 86 % for 2019-2024Strong demand by NEA, SEA, India due to continued urbanization

Petrochemical Outlook : HDPE

HDPE world operating rate World : Addition Capacity

Regional HDPE Net Trade Southeast Asia : HDPE Trade

20

>80%

Mainly export from ME to Asia

Global operating rates averaged 84% for 2019-2024Low-cost producers MDE, NAM is pressuring high-cost producers

Southeast Asia : Net import

Petrochemical Outlook: ABS

World : ABS Supply & Demand

World: 2019 ABS Demand by Region

World : ABS Capacity Addition by Region

World : ABS Demand by Application

21

2019 & 4Q19 Highlight

Agenda

Industry Outlook

Operation & Financial Performance

CEO Agenda

Domestic First

Human Productivity Improvement

• Manpower management program

• Middle East crude management

Crude Oil Optimization

• Petrochemical strategy• Petroleum strategy

• Crude and product hedgingHedging

Increase Specialty Product

Land Utilization

Debottleneck Operation Unit

Dredging

• Freight cost saving 0.1 - 0.15 $/bbl

1

Advanced Analytic

2

3

4

5

6

7

8

9

23

Business Plan to Enhance Competitiveness & Business Performance in 2020 - 2025

Growth Strategy

WHA IERIRR 13%Land 2,152 RaiSell Land by 2021CAPEX 320 MB

Ultra Clean FuelIRR 21%COD 2022CAPEX 9,466 MB

Diesel Draw offCAPEX 750 MB

STARGATECOD 2022

Growth Strategy

> 2,000 MB

ABS ExpansionIRR 32%COD Q2, 2020CAPEX 420 MB

ATOM :IRR 28%COD Q3,2020CAPEX 350 MB

IPOLYMERCAPEX 66 MB

Floating SolarIRR 17%Power 12.5 MWCOD Q1, 2020CAPEX 625 MB

Growth Strategy100-200

MB

Strengthen IRPC

800 - 1,000 MB

ProductivityImprovement

1,000 - 1,200 MB2

• Productivity Improvement

• Digitization

1

1

3

4

2

Studying Project2020 2021 – 2025

More benefit to be realized

24

CAPEX Plan in 2020 – 2024

264 194

88

3,675

14,428

11,315

2,965 1,570

2,164

3,797

1,392

1,632 1,255

225

-

-

-3,785

2,839

2,365

6,962

9,097

20,590

12,707

4,597

2020 2021 2022 2023 2024

E4E, IRPC 4.0

MARS project

General & Maintenance Project

Others

UCF Project

Unit: MB

10,555 ,

19%

458 , 1%

32,472 ,

60%

8,989 ,

17%

1,480 , 3%

IRPC 5 year CAPEX Plan

General & Maintenance Project

E4E, IRPC 4.0

Others

Total *

53,953 MB

UCF Project

MARS Project

* Excluding study projects for investment opportunities of 14,108 MB

*

Thank You

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