Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics...
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Transcript of Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics...
INVESTOR PRESENTATION
Disclaimer
2
This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand.
PTTGC has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements.
Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and PTTGC does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.
• Thailand’s largest ethane-base cracker with integrated aromatics and refining businesses
• PTT’s Chemical Flagship
Prof
ile
Incorporated on October 19, 2011 from the amalgamation of PTTAR and PTTCH
Foreign Limit <= 37%
Dividend Policy >=30%
Registered capital 45,089 million baht
Paid-up capital 45,089 million baht
Top
5 Sh
areh
olde
rs
3
Current Position of PTTGC
First trading day on October 21, 2011
Number of employees 3,560 persons
1. PTT 48.89% 2. NVDR 7.23% 3. HSBC (Singapore) Nominees PTE 2.75% 4. HMC Polymer 1.85% 5. Siam Cement 1.82% as of Mar 6, 2013
Fully Integrated Refinery and
Aromatics Business
Fully Integrated Petrochemical and
Chemical Business
Prof
ile
Incorporated from amalgamation of ATC and RRC in 2007
Foreign Limit <= 37%
Dividend Policy => 30%
Registered and paid-up capital of 29,938,149,690 Baht and
29,869,135,380 Baht*, respectively
Incorporated from amalgamation of NPC and TOC in 2005
Foreign Limit <= 24%
Dividend Policy >= 30%
Registered and paid-up capital of 15,191,153,000 Baht
and 15,189,940,000 Baht**, respectively
*As of 29 Jul 2011
Prod
uctio
n C
apac
ity
Aromatics Products = 2,259 KTA
Petroleum Products = 228,000 barrels per day
Olefins = 2,888 KTA
Polymers = 1,590 KTA
EO/EG = 495 KTA
Oleochemicals = 819 KTA
Shar
ehol
der
Stru
ctur
e
PTT Others
4
Overview of PTTAR & PTTCH
49.1% 50.9%
**As of 31 Aug 2011
5
Achieve Global
Winning Formula
World - Scale Company
Create a Strong Platform for
Growth
Reduce Volatility of Raw Materials & Product Prices
Maximize Integration
PTT’s Petrochemical Flagship “Thailand’s largest Gas and Liquid base Petrochemical producer with 8 million tons production capacity”
1
Highly Integrated Operations with Strong Feedstock Position
“Combined Synergy streams of 765 KTA” 2
Product Coverage Across All Major Petrochemical Building Blocks
“Combined Aromatics and Olefins feedstock with all major intermediate and derivative products”
4
Improved Market Position 5
“Become top 5 market cap in Thailand and the top petrochemical company in ASEAN”*
New Product Opportunities 6
“Capitalize on PTTAR and PTTCH strength and optimize product offering in high value added products”
Strong Immediate Synergies and Identified Long Term Synergies
“Significant synergies of US$80m - US$154 m annually by 2015 with NPV of US$535 m – US$1,055 m over 15 yrs at 10% discount rate”
3
Transaction Rationale
*As of Feb, 2011
Strategic location of each plant in Map Ta Phut Industrial Complex creates proximity to suppliers and customers
6
PTTAR PTTCH PTTGC 19 Oct. 2011
PTTGC Today
Petrochemical (KTA)Aromatics 2,259 2,259 2,259 Olefins 2,888 2,888 2,888 Polymers 1,590 1,590 1,590 EO/EG 470 470 470 Green Chemical 819 819 925 High Volume Specialty 142 142 284 556
Total (KTA) 2,401 5,909 8,310 8,688
Distillation Capacity (KBD) 280 280 280Petroleum Products (KBD) 228 228 228
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Largest Petrochemical Player
Thailand’s largest petrochemical player
Leading Aromatics, Olefins and Polymers position
Strong feedstock position with Natural Gas, Condensate and Crude supply contract and Light Naphtha/C3,C4 from Refinery
Flexible Feedstock and Highly Competitive Cost Structure
8
Flexible Feedstock and By-Product Enhancement
PTTGC's refinery business is able to process a variety of crude oil at a competitive cost due to high complexity
Availability of feedstock along the whole carbon chain enhances the value of PTTGC by offering increased flexibility for better optimization, resulting in further cost advantages – Olefins can be produced from naphtha or ethane directly
from the Gulf of Thailand – Aromatics can be produced from condensate or reformate
from the Refinery Value enhancement from by-product exchange among Olefins,
Aromatics and Refinery units for upgrading at the other unit highlights operational integration and efficiency, for instance – Refinery unit can use condensate residue and hydrogen
from Aromatics unit – Aromatics unit can use pygas from Olefins unit – Olefins unit can use offgas and C3, C4 from Refinery and
Aromatics units, respectively
Feedstock Supply Product Marketing
Refinery
Aromatics
Olefins / Polymers
Others
Condensate
Crude Oil
Others
Ethane, Propane, LPG
C5-C9
C10-C25
C2-C4
Olefins
100% Polymers (1)
47% (2)
53% (2)
Ownership Feedstock Supply Commercial Agreements Product Marketing Commercial Agreements
Customers
Others
71% (2)
29% (2)
103
318
799 824 830 883
951 967 1,006
-
200
400
600
800
1,000
1,200
MDEEthane
NAMEthane
NEA LPG NAMNaphtha
MDE LPG MDENaphtha
NEANaphtha
SEANaphtha
WEPNaphtha
Global Ethylene Cash Cost by Region
USD/Ton
2012E (4)
1. PTT owns 50%, PTTGC and IRPC each owns 25% in PTTPM. 2. Six month period ended 30 June 2012. 3. Revenue includes sale of goods and rendering of services.
(5)
Source: IHS (formerly CMAI) as of July 2012. Note: MDE = Middle East, NAM = North America, NEA = Northeast Asia, SEA = Southeast Asia, WEP = Western Europe.
4. PTTGC ethylene cash cost is based on Company estimate and ethane cracker only. 2012E PTTGC cash cost takes into account the effect of the renewal of gas price agreement.
5. MDE cash costs are average values of Iran and Saudi Arabia.
(5) (5)
Natural Gas
Crude Palm Oil
Crude
Condensate
Cracker
Aromatics Plants
Refinery
Ethylene
HDPE
LLDPE
LDPE
MEG
Propylene
Oleochemicals
Paraxylene
Benzene
PTAPET Fiber/Resin
EO
Ethanolamine
Ethoxylate
Cyclohexane
CumenePhenol
Acetone
EB/SM
PS
BPA
Methyl Ester(B-100)
PC
Caprolactam Nylon 6
Fatty Alcohol
MMA PMMA
Epoxy Resins
ABS
SBR
PP
PTT Phenol
Petroleum Products- LPG- Reformate- Light Naptha- Jet Fuel- Diesel- Fuel Oil
Reformate, Heavy
Naphtha
Pygas
Condensate Residue,
Hydrogen
Light Naphtha
C3,C4
OffGas Mixed C4 Butadiene
PO
PUTDI/HDI
Toluene
Polyols
Orthoxylene
Cracker Bottom,
Hydrogen
PA Plasticizer
1. PTTGC does not currently produce these products.
REFINERY & SHARED FACILITIES AROMATICS OLEFINS POLYMERS EO-BASED
PERFORMANCE GREEN CHEMICALS HIGH VOLUME SPECIALTIES
Feedstock Upstream Intermediates Downstream Proximity to Suppliers and Customers
Exchange Stream Products By-Products
Potential Product Opportunities (1)
Petroleum Products - LPG - Reformate - Light Naphtha - Jet Fuel - Diesel - Fuel Oil
Fully Integrated Petrochemical and Refinery Operations with Diversified Product Portfolio
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Diversified Product Portfolio and End Markets
10
Full range of product offering reduces business volatility and provides future opportunities to expand to High Volume Specialties and other new products
Potential Product Opportunities (2)
PMMA
Nylon 6
ABS
SBR
PP
PC
Epoxy Resins
Polyester Fiber
PET Resin
Automotives, Electronic and Electrical Appliances, Packaging, Construction, Paints
Automotives, Textiles, Agriculture
Textiles, Packaging, Furniture,
Isocyanates, PU (1)
New Investments
PLA
Foams, Coatings, Elastomers
Films/Cards, Durables, Beverages, Non-Wovens/Fibers
Current Downstream Products New and Potential Downstream Product Opportunities
Packaging, Films, Toys, Furniture, Construction
Health and Personal Care Products, Pharmaceutical
Packaging, Electronic and Electrical Appliances, Automotives
Biodiesel
HDPE
LDPE
LLDPE
PS
Biodiesel
Ethoxylate
Ethanolamine
1. PU is currently a potential product opportunity. 2. PTTGC does not currently produce these products.
Organization Chart and Business Units
1. Production of certain petrochemical products are from joint ventures. 2. Crude Distillation Unit = 145 kbd, Condensate Splitter = 135 kbd.
LPG Light Naphtha Reformate Jet A1 Diesel Fuel Oil
Benzene Toluene Paraxylene (PX) Orthoxylene Mixed Xylenes Cyclohexane
Ethylene Propylene Mixed C4 Pyrolysis
Gasoline (PYGAS)
HDPE LLDPE LDPE PS
Ethylene Oxide (EO) Ethylene Glycol
(EG) Ethanolamines Ethoxylate
Oleochemicals Bioplastics Biochemicals Methyl Ester
(ME) Plastic Additives
Phenol Bisphenol A
(BPA) Toluene
Dilsocyanate (TDI)
Hexamethylene Diisocynate (HDI)
280 kbd (2) 2,259 ktpa 2,888 ktpa 1,590 ktpa 470 ktpa 933 ktpa 292 ktpa
Capacity (1):
Key Products (1):
Marketing, Commercial and Supply
Aromatics Olefins Polymers EO-Based Performance
Green Chemicals
High Volume Specialties
Mr. Anon Sirisaengtaksin Chief Executive Officer
Growth, Sustainability
and Innovation External Affairs
Corporate Strategy
Corporate Affairs
Finance and Accounting
Organizational Effectiveness
Engineering and
Maintenance Refinery
Mr. Bowon Vongsinudom President Mr. Patiparn Sukorndhaman
Executive Vice President, Finance & Accounting
11
Vision/Mission
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“To be a Leading Chemical Company for Better Living” Shareholders
We deliver the best business performance
through trustworthiness to create fair and
sustainable value for shareholders
Society We engage and
integrate social and environment to our
business with responsibility and care
for sustainable development.
Business Partner
We provide superior solutions from innovative products and services to be the best choice for
business partners.
Employee We create a learning organization and a happy workplace to cultivate proficient
workforces with profound engagement and
commitment to professional excellence.
Top Quartile Performance in Asia Pacific
Leading
Petrochemical and Chemical Producer
Chemical Company
Focus to End-User Customer for Better Living
Better Living
Strategic Direction
13
“To be a Leading Chemical Company in Asia Pacific”
2011 Target2017
Target2022
Operational Excellence, Marketing Excellence, Capital Expenditure Excellence
Continues to Strive for Strong Profitable Growth
14
Synergy Project Excellence
Debottleneck
563
HVS
Green
Sales in THB Bn
Phase 1: Foundation for Growth Phase 2: The Growth Mode
We aim to grow ~5 percent p.a. in the next ten years
HVS
Green
New Global Hub
Expected EBITDA Benefit Uplift 15-30%
~ 620 - 650
Actual 2012
Based on constant Dubai crude year 2012 at USD 109 per bbl
~ 800 - 900
Our Strengths for Future Growth
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Fully Integrated Operations with Flexible Feedstock,
Enhanced Optimization and Diversified Product Portfolio
Experienced Management with Strong Track Record
Strong Market Position Across Principal Products
Highly Competitive Cost Structure with Stable Margin
Collaboration and Support among PTT Group to Enhance
Synergy Value
1
2
3 4
5
For further information & enquiries, please contact our Investor Relations Team at [email protected]
Thank You
1. Thitipong Jurapornsiridee VP - Corporate Finance & IR [email protected] +662-265-8574 2. Panugorn Puengpradit IR Analyst [email protected] +662-140-8714 3. Prang Chudasring IR Analyst [email protected] +662-265-8327 4. Sinida Petchveerakul IR Analyst [email protected] +662-140-8713
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