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INVESTOR PRESENTATION

Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

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Page 1: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

INVESTOR PRESENTATION

Page 2: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

Disclaimer

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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.

Page 3: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

• 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

Page 4: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

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

Page 5: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

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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

Page 6: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

Strategic location of each plant in Map Ta Phut Industrial Complex creates proximity to suppliers and customers

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Page 7: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

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

Page 8: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

Flexible Feedstock and Highly Competitive Cost Structure

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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)

Page 9: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

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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Page 10: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

Diversified Product Portfolio and End Markets

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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.

Page 11: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

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

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Page 12: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

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

Page 13: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

Strategic Direction

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“To be a Leading Chemical Company in Asia Pacific”

Page 14: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

2011 Target2017

Target2022

Operational Excellence, Marketing Excellence, Capital Expenditure Excellence

Continues to Strive for Strong Profitable Growth

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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

Page 15: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

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

Page 16: Investor Presentationinvestor.pttgcgroup.com/misc/PRESN/20130530-PTTGC-NewInvestor.pdf · Aromatics Products = 2,259 KTA Olefins ... NAM = North America, NEA = Northeast Asia, SEA

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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