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PTG Energy Public Company LimitedAnalyst Meeting

1Q2020

18th May 2020

AGENDA

Highlights

Industry outlook

Business overview

Financial performance

Preventive plan for COVID-19

2

Highlights

Volume

growth

9.7% YoY

LPG

householdPPPGC

fully runs

and operates

F&B

business

x

Delivery service

3

INDUSTRY

OUTLOOK

4

28

29

30

31

32

33

34

0

10

20

30

40

50

60

70

80

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 Mar-20 Apr-20

WTI Retail Diesel B7 Price Exchage Rate

Movement of WTI, Exchange rate and HSD Retail Price

30.3 – 33.1

30 THB Diesel price cap

announced in late May 18

To hit at THB 30/liter WTI was at $75/barrel and the exchange rate

was at THB32.5/$ when the domestic diesel price hit THB30 cap.

Fx (THB/USD)WTI (USD/BBL)HSD Diesel Price (THB/L)

20.4 – 64.552.5 – 61.7

30.8 – 30.3

Source: WTI crude oil macro trend, EPPO and Company data

5

20

25

30

35

40

45

50

55

60

65

70

-0.3 -0.3

0.5

-0.3

0.3

-0.3

0.4

-0.3

0.3

-0.3

0.3 0.4

-0.3

0.5 0.4

0.5

-1.0

0.4 0.5 0.5

-0.4

0.3

-0.4 -0.3

-0.6 -0.5

-0.3

0.3

-0.4

0.5

-0.6

-0.6

-0.6

-0.6

-0.3

-0.6

-0.6

-0.4

-0.5

-0.5

Changes of Diesel Retail Price (B7)

Diesel Price Adjustment 4Q/19 Diesel Price Adjustment 1Q/20

Month No. of time price increase

No. of time price decrease

Oct 1 2

Nov 3 3

Dec 5 3

Total 9 8

Unit: Baht per liter

Source: WTI crude oil macro trend, EPPO and Company data

WTIChanges of Diesel

Month No. of time price increase

No. of time price decrease

Jan 4 4

Feb 2 3

Mar 0 10

Total 6 17 6

6,006 5,971 5,868

2,755 2,896 2,731

8,761 8,867 8,599

1Q19 4Q19 1Q20

Diesel Mogas

Total Consumption Retail Consumption

Unit: ML

4,092 4,262 4,063

2,363 2,491 2,328

6,454 6,753 6,391

1Q19 4Q19 1Q20

Diesel Mogas

Unit: ML

Thailand Oil Consumption

-3.0% QoQ

-1.9% YoY

-5.4% QoQ

-1.0% YoY

The overall oil sales volume through service

stations decreased since there were less

tourists and less people travelling during the

spread of COVID-19.

Thailand’s total oil consumption dropped due

to the slowdown in economic activities, resulted

from the outbreak of COVID-19.

Source: Department of Energy Business

B7

80%

B10

10%

B20

10%

1Q20

B7

80%

B10

10%

B20

10%

1Q20

7

1,783 1,760

1,670

1Q19 4Q19 1Q20

491 455

378

1Q19 4Q19 1Q20

LPG Auto ConsumptionAll Channel Consumption

Unit: MLUnit: ML

-5.1% QoQ

-6.4% YoY

-16.9% QoQ

-23.0% YoY

Overall LPG consumption declined mainly due

to the decrease in LPG auto consumption

LPG auto consumption dropped as the

narrower price gap of LPG and oil, and less

number of traveling due to the spread of

COVID-19.

The outbreak of COVID-19 caused a decline

in LPG household consumption.

Source: Department of Energy Business

984 1,002

965

1Q19 4Q19 1Q20

LPG Household Consumption

Unit: ML

-3.7% QoQ

-2.0% YoY

Stati

on

23%

Hous

ehol

d

59%

Industrial

18%

1Q20

Thailand LPG Consumption

8

BUSINESS

OVERVIEW

9

Unit: ML

1,045 1,158 1,148

64

82 691,109

1,240 1,217

1Q19 4Q19 1Q20

Retails Wholesale

-1.8% QoQ

+9.7% YoY

Retail

Growth -0.9% QoQ+9.8% YoY

in 1Q20

Wholesale


in 1Q20

PTG’s oil sales volume continued to increase

YoY both in retail industry and wholesale

industry.

The growth in oil sales volume through service

stations was from the branch expansion and

the increase in PT brand awareness.

OIL SALES VOLUME

By channel

Retail

94%

Wholesale

6%

1Q20

10

796896 886

313

345 331

1,109

1,241 1,217

1Q19 4Q19 1Q20

Diesel Mogas

Unit: ML

Diesel in 1Q20


Mogas in 1Q20


Same Store Sales of 1Q20 0% YoY

Oil station expansion of 1Q20 4.3% YoY

OIL SALES VOLUME

By product

-1.8% QoQ

+9.7% YoY

Mogas

27%

B7

55%

B10

5%B20

13%

Diesel

73%1Q20 1Q20

Diesel

11

0 1

58

1Q19 4Q19 1Q200

155137

1Q19 4Q19 1Q20

14.5%

85.5%

PTG others

1Q20

31.5%

68.5%

PTG others

1Q20

PTG B10 OIL SALES VOLUME PTG B20 OIL SALES VOLUME

Unit: ML Unit: ML

in the market in the market1st 2nd

+111.6% QoQ

-11.6% QoQ

Total Consumption 400 ML

Total Consumption 436 ML

Source: Department of Energy Business & the Company data

1,246 stations 643 stations

rank rank

12

38.0%

13.6%13.0%

12.5%

11.2%

7.1%

3.1%

1.4%

Total Consumption

8,707 ML

Total Consumption

8,761 ML

Total Consumption

8,599 ML


Included: Diesel, B10, B20, Benzene, Gas95, Gas91, E20

1Q19

38.5%

14.1%

13.4%

12.7%

11.0%

6.9%

2.1%1.3%

1Q20

37.6%

13.2%13.0%

11.6%

10.8%

7.4%

5.0%

1.4%

1Q18

Total Consumption

6,454 ML

Total Consumption

6,753 ML

Total Consumption

6,391 ML

40.4%

15.3%13.7%

12.6%

11.8%

4.3%1.7%

0.1%

1Q18

38.3%

15.3%

15.0%

11.9%

12.0%

4.0%1.7% 1.8%

1Q19

39.1%

16.6%

14.8%

11.3%

11.1%

3.9%1.5% 1.6%

1Q20


Same Store Sales of 1Q20 -3.5% YoY

LPG station expansion* of 1Q20 50% YoY

* Included LPG Stand alone and Mix

30

38 39

1Q19 4Q19 1Q20

Unit: ML

LPG SALES VOLUME

+2.2% QoQ

+29.9% YoY

PTG’s auto LPG sales volume increased due to the

branch expansion.

However, PTG’s same store sales dropped 3.5%

because of the decrease in total auto LPG

consumption, resulting from the COVID-19

pandemic.

23.6%

17.5%

16.5%

12.2%

11.3%

10.4%

8.6%

1Q20

19.5%

17.9%

16.7%9.8%

6.6%

3.5%

26.1%

1Q18

17.3%

16.8%

16.2%10.1%

10.5%

6.1%

23.0%

1Q19

Total Consumption

561 ML

Total Consumption

491 ML

Total Consumption

378 ML


1,583 283

78 113

85% 15%

2,057stations

41% 59%

NORTH

409

438

241

WEST

254

231

SOUTH

244

NORTHEAST

614

635

CENTRAL

113

125

EAST

172

196

BKK & Vicinity

136

165

PT service station

distribution

1Q201Q19

PROPORTION

21.3%

7.1%3.4%

10.6%

14.0%

5.6%

5.4%

NORTH

21%

WEST

12%

SOUTH

12%

BKK&Vicinity

8%

EAST

10%

CENTRAL

6%

NORTHEAST

31%

1Q20

18

253

11

84

197

47

17

9

625 TOUCH POINTS

7

19

HOUSEHOLD OPERATING HOURS

Gas shop 08:00-17:00Delivery 05:00-20:0025 branches

Gas Filling Plant

Location: Suksawat

Capacity: 30-40T/day

2020 PlanBKK&Vicinity areas expansion

As of May 20

20

A: Biodiesel Thailand Consumption

B: Capacity

Full capacity of biodiesel

industry is 8.3 ML/dAs of Feb 20

4.6 5.2 5.44.6 5.4 5.2

1Q19 4Q19 1Q20

Demand Supply

Unit: ML/d

2

3

4

5

6

7

8

0

10

20

30

40

50

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

Mar

20

Apr

20

May

20

CPO B100 Palm fruit

Palm fruit (baht/kg)

CPO (Baht/kg)B100 (Baht/L)

D: Average Market Price

CPO RBDPO Olein B100

Palm Oil Mill plant

Refinery Dry fraction

B100 plant

100% 100% 100%

PRODUCT OUTPUT

100%

Palm complex UPDATEDC: Palm fruit CPO and B100 Movement

Palm Fruit

(Baht/kg)

CPO

(Baht/kg)

B100 (Baht/L)

1Q19 2 - 3 16 - 17 20 - 21

4Q19 3 - 4 22 - 23 25 – 26

1Q20 5 - 6 33 - 34 38 - 39Source: EPPO & DIT

21

PREVENTIVE

PLAN FOR

COVID-19

22

F&B business

25

OUTLET เพือ่ประชาชน “มหกรรมสินค้าช่วยค่าครองชพี”

26

OIL

NON-OIL

OIL

LPG

1,900

700

+10-12% YoY

+0-5% YoY

+10-12% YoY

2,000 MB

300 MB

200 MB

2,500 MB

LPG&MIX 230CORE BUSINESS

ADJUST TARGETS

FINANCIAL

PERFORMANCE

28

2,537 2,502 2,231

8.9%8.1%

7.7%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

0

1,000

2,000

3,000

4,000

5,000

6,000

1Q19 4Q19 1Q20

Gross Profit GPM

28,655

31,043

29,121

1Q19 4Q19 1Q20

-6.2% QoQ+1.6% YoY

Revenue

Oil

95.6%

Non-oil* 4.4%

1Q20

Gross Profit

Oil

87.1%

CVS &

others

4.7%

LPG

4.6% F&B

3.6%

1Q20

* Non-oil includes LPG, Logistics, Max Mart, Food and Beverages, Lubricant, share profit and other incomes

-10.8% QoQ-12.1% YoY

PTG’s revenue increased YoY due to the oil

sales volume growth of 9.7%.

The revenue growth was lower because of the

sharp drop in the global oil price, resulted in

reduced retail oil price of 6.6% YoY and

4.3% QoQ.

The sudden drop in the global oil price caused

the oil retail price to decrease faster than the

oil cost, resulted in low marketing margin.

Total non-oil gross profit increased 17.5% YoY,

but decreased 13.7% QoQ.

Unit: Baht Million Unit: Baht Million

29

EBITDAUnit: Baht Million

EBITDA dropped due to the lower marketing

margin.

PTG adjusted the EBITDA target growth to be

10 – 12% as a result of the COVID-19

outbreak impact.

Net ProfitUnit: Baht Million

1,435 1,307 1,209

5.0%4.2% 4.2%

-5.00%

-3.00%

-1.00%

1.00%

3.00%

5.00%

-

500

1,000

1,500

2,000

1Q19 4Q19 1Q20EBITDA EBITDA margin

519

360

204

1.8% 1.2% 0.7%

-15.00%

-10.00%

-5.00%

0.00%

0

100

200

300

400

500

600

700

1Q19 4Q19 1Q20

NI NI margin

Net profit decreased YoY and QoQ

because of

The drop in marketing margin

The impact of the financial report

adjustment according to TFRS 16

-43.2% QoQ-60.6% YoY

-7.5% QoQ-15.7% YoY

30

In regards to PTG's light asset strategy in renting the existing stations for its expansion, the right of use

assets, formerly recorded in Notes, is currently adjusted to record in P&L and Balance Sheet. This

resulted in an increase of liabilities in 1Q2020 Financial Statement.

TFRS16 Impact

P&L impact

31

Consolidate Consolidate

include TFRS16 impact exclude TFRS16 impact VAR

Rental fees 25 420 -395

Service fees 52 58 -7

Depreciation 670 415 255

Financial Cost 272 79 193

Total 1019 972 47

TFRS16 Impact

The total liabilities increased due to the impact

of TFRS16 to record lease liabilities from the

lease agreement and its renewing contract in

balance sheet.

Assets Liabilities and EquityUnit: Baht Million

1,009 1,038 456 1,758 2,217 1,474 2,207 2,207 1,655

11,405 11,82111,108

2,874 3,153

23,353

1,687 2,216

2,173

20,940 22,652

40,219

2018 2019 1Q20Others Right-of-use assets, net

Prepaid Leasehold Right & Rental PP&E and Investment Property

Investment Inventories

Cash and Cash Equivalents

5,476 6,707 6,956 1,400

3,050 2,400 6,335

5,779 5,069 387

216

18,405

5,405 5,518

5,486

1,937 1,317

1,903

20,940 22,652

40,219

2018 2019 1Q20Equity S-T Borrowing

Trade and Other Payables Lease liabilities, net

L-T Borrowing Other Liabilities

Unit: Baht Million

The total assets increased from the impact of TFRS

16, which is the record of right-of-use assets.

Inventories decreased 33.5% from last year due

to the inventory management during the drastic

drop in oil price.32

Balance sheet impact

33

TFRS16 Impact

Unit: Baht Million

Asset

1Q20 include

TFRS16 impact 2,019 VAR

Prepaid leasehold right and

land rental, net - 3,914 (3,894)

Right-of-use assets, net 23,353 - New Items

Other 16,856 18,738

Total Asset 40,208 22,652 17,556

Unit: Baht Million

Liability

1Q20 include

TFRS16 impact 2,019 VAR

Current portion of lease

liabilities, net 532 171 361

Lease liabilities, net 18,405 216 18,189

Other 14,326 15,557

Total Liability 33,263 15,944

Equity&Shareholder 6,945 6,707

Total Liability & Shareholder 40,208 22,652 17,556

Profitability Leverage Ratio

10.3%6.6%

2.6%

36.5%

23.6%

12.3%

1Q19 4Q19 1Q20

ROA ROE

1.60 1.46

3.99

1Q19 4Q19 1Q20

Interest Bearing Debt to Equity

ROE decreased to 12.3% due to the lower net profit.

ROA decreased to 2.6% due to

The lower net profit

The additional assets, right-of use assets of

23,353 million baht, from the financial report

adjustment according to TFRS 16

However, PTG has been strengthening the non-oil

businesses to stabilize the profitability.

IBD/E increased to 3.99 times because of the

record of lease liabilities from the lease

agreement and its renewing contract in

accordance with TFRS16.

PTG adjusted the debt covenant condition to

exclude the lease liabilities from TFRS 16 with

financial institutions and debenture holders.

(x)

34

35

TFRS16 Impact

Adjusted terms and conditions of the debentures to clarify the debt

calculations by excluding TFRS16 application.

Debt Covenant Adjustment

Debentures & Long term loans

TRIS rating already included the lease obligations into the debt calculation.

Credit rating BBB+ (stable) as of March 17, 2020.

TRIS

Operating Cash Cycle Cash FlowUnit: Baht Million

6.66 6.40 5.26

0.84 0.89 0.89

16.54 16.62 15.51

(9.04) (9.33) (9.35)

2018 2019 1Q20

Day in Inventory Avg. Collection Period

Avg. Payment Period Cash Cycle

Since PTG has control over its supply chain, the

inventory can be effectively managed in

accordance different circumstances.

PTG had longer negative operating cash cycle

of 9.35 days due to inventory management

during the fluctuation of oil price.

PTG had a decrease net cash of 581 million

bath due to the negative net CFF of 760

million baht as a result of debt repayment.

Unit: Day

36

To stay connected with PTG,

please add Line: @ptgir

37

Some information, shown in the presentation, was obtained from publicly sources which have not been

independently justified. They are used only for industry outlook and forward trends. The forward looking

in this presentation has been prepared with the basis of the assumption numbers which might be proved to

be incorrect. This presentation should not be solely relied upon as a recommendation or forecast by PTG

Energy PLC.

Disclaimers

38

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