Safety and Sustainability: PTT has implemented several safety programs that really improve the safety performance

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2 Safety and Sustainability: PTT has implemented several safety programs that really improve the safety performance People and Culture 4 Aspiration = Zero Accident Injury Rate (Injuries/Million hrs) 3 Policy and Standard Process and Platform * * * TRIR-employee TRIR-contractor * As of 1 May 2015 Benchmark- Employee Benchmark- Contractor Benchmark : 2013 SAM Robeco Sustainability Members Oil & Gas Industry Technology and Innovation ZERO Injury for employee & Contractor 2015 Performance (As of 1 st May) Compared with 2014 Performance Employee 76% 59% Percent better than peer 1 Contractor Percent better than peer * Total Recordable Injury Rate 1

3 2 PTT Group s Sustainability Energy Literacy for Children: 2

4 3 Contents Overview Performance Q1/ Outlook

5 4 Highlights : Q1/15 Resolution on Hanging Issues Key Events Update (Q1) LPG Price lifting to reflect the market price NGV price raised to Baht 13 per Kg, and await for further adjustment. Completion of Third Party Access (TPA) Code of pipeline and LNG facility Crude oil price - bottoming out BCP divestment completed on Apr 30, 2015 GPSC s IPO debut on May 18 th New Accounting Standards (Pack 5) The Supreme Admin Court again confirms PTT fully complies with court order on pipeline asset return SPRC s IPO on scheduled by year-end Notwithstanding Supreme Court s repeated confirmations, pipeline return to the State still under attack

6 Highlights: Q1/15 Low Oil Price still effect PTT Group Performance Performance (YoY) Refinery better performance from improved crude oil price and GRM without turnaround. Coal - cost reduction improved performance Power higher sales volume drove performance Lower PTTEP s performance mainly from lower average selling prices. Gas declining performance due to lower GSP and NGR margins Oil stock loss pressured performance Trading performance declined from condensate business Petchem lower performance mainly from Olefins Finance PTT Group raised fund in a total of 3,000 MMTHB from BCP bond issuance The Corporate Treasurer - Asia s Best CFO of 2014 Corporate Governance Asia - Asia s Best CEO - Asia s Best CFO - Best Investor Relations professional - Best Investor Relations 5

7 Key Business Drivers: Oil price bottomed out while natural gas price still maintained Dubai FO Dubai vs FO ($/BBL) Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 HDPE and PX spreads($/ton) HDPE PX Avg Avg Avg. 607 Avg. 302 Avg Avg Avg. 750 Avg. 385 Avg Avg Crack Spread 1H14 2H14 Q1/15 Gasoil-Dubai Mogas95-Dubai FO-Dubai Avg. 682 Avg Spot LNG JLC* Avg. NG NG Prices ($/MMBTU) Avg * JLC = Japan LNG Cocktail : Landed LNG price in Japan 0 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Depreciate Avg THB / USD (2.92%) Avg. Q1/14 = THB/USD Avg Avg Avg Avg FX (THB/USD) Appreciate 0.01 THB/USD (0.03%) Avg Avg Avg Appreciate 0.07 THB/USD (0.21%) Avg. Q1/15 = THB/USD 100 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Note: Figures are monthly average 30 6 Oct-13 Q4/13 Q1/14 Jan-14 Apr-14 Jul-14 Oct-14 Q4/14 Q1/15 Jan-15 6

8 Q1/15 Performance: PTT Group: Pressured performance MMTHB Refinery Petrochem 28,538 1,526 3,816 14,297 10,517 1,751 21% 22,584 Refinery Avg. A/C GIM increased 13% Aggregate intake increased 15% Petrochem Olefins business declined from Polymer price dropped, 24% Refinery s margin increased 1% Aromatics improved: P2F margin raised 32% PTTEP PTT Others 8,422 13,711 1, ,145 1,779 Margin Interest Other Share of expense & Income FX gain OPEX* income income taxes Gross FX gain Other OPEX * Share of Interest margin Income income expense *including petroleum exploration expenses and royalties 4,740 3,319 5,616 6,638 2,271 Q1/2014 Q1/2015 NCI NCI 211% 13% 33% 52% 114% PTTEP Sales vol. increased 10% Performance decreased mainly from lower sale revenue and higher DD&A from an additional completed project Gas GSP and Industrial EBITDA margin decreased by 84% and 48% NG Sale Volume increase 9% from GSPs and New IPPs Oil Vol. increased 1% Performance decreased from stock losses Trading Vol. increased 17% Margin decreased 54% from condensate discount Others Higher performance of others mainly from PTTLNG and PTTT 7

9 8 Contents Overview Performance Q1/ Outlook

10 E&P : Weakened YoY from declined oil price, though strong gas price helped; Rebounded QoQ due to lack of impairments Liquid ($/BBL) ** eighted Avg. ($/BOE) Gas ($/MMBTU) MMUSD 380 (739) Q4/ Q1/ Q1/14 Overview Performance Q1/15 Outlook E & P Gas Oil & Trading Refining PetChem Others Product Prices * Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 * Gas price, if excludes Vietnam 16-1 retroactive sale recording, is 7.97$ for Q1 14 ** Average selling price, if excludes Vietnam 16-1 retroactive sale recording is 65.91$ for Q1 14 Net Income (100%) Q1/15 136% QoQ 31% YoY 33% QoQ 50% YoY 14% QoQ 25% YoY 0.4% QoQ 3% YoY KBOED Sales Volume Q1/14 Q4/14 Q1/15 Key Highlights Liquid Gas 6% QoQ 9% YoY QoQ Sales volume decreased slightly from PTTEP Australasia and Contract 4 projects Avg. selling price decreased in line with world oil price Net income increased mainly due to lack of impairment loss as well as a decline in exploration expenses & income tax YoY Avg price significantly decreased from steep decline in oil price, though strong, resilient gas price helped Volume increased from Zawtika full production & Hess acquisition Net income declined from lower product prices & higher DD&A from newly completed projects 9

11 10 E&P Roadmap: Deliver near-term growth and reassess feasibility of medium-long term prospects What to expect in 2015 E & P Gas Oil & Trading Refining PetChem Others 1. SAVE to be SAFE Leaner CAPEX and OPEX (~10% reduction in Cost Optimization Initiative 2015) 2. M&A Opportunities Robust liquidity & ample debt headroom 3. Focused exploration and Reduced exposure to high risk/cost wells appraisal Concentration of SE Asia Further-down horizon : deliver near-term growth and reassess feasibility of medium-long term prospects

12 PTT EBITDA Performance: Business Q1/14 Q4/14* Q1/15 QoQ YoY Segment Gas-EBITDA (Unit:MMTHB) 14,311 9,680 9,262 (4%) (35%) S&M 4,753 3,290 2,476 (25%) (48%) TM 6,881 5,874 6,775 15% (2%) GSP 5,668 3, (75%) (84%) NGV (4,737) (4,865) (3,019) 38% 36% Others 1,746 1,744 2,114 21% 21% Oil-EBITDA Trading**- EBITDA 5,042 (236) 3,927 1,764% (22%) 1,940 (331) % (62%) Total*** 21,293 9,113 13,929 53% (35%) * Not restated ** MIS *** Included Gas/Oil/Trading affiliates 11 11

13 Gas BU: Natural gas volume continues to grow MMSCFD ,832 4,704 4,450 4,768 4,731 4,685 4,497 4,802 4,469 Q1 Q2 Q3 Q4 * NG Sales Volume include Inter-BA Transaction NG Sales Volume* NGV Sales Volume E & P Gas Oil & Trading Refining PetChem Others AVG. 4,832 4,688 4,589 MMSCFD NG Customer Breakdown 4, ,802 4, , ,034 1,011 1,259 1,070 1,129 Q1/14 Q4/14 Q1/15 Key Highlights 1% QoQ 9% YoY NGV (7%) Industry (14%) GSP (20%) SPP (15%) IPP (21%) EGAT (23%) K.Ton/Day % QoQ 1% YoY QoQ NG volume increased mainly from power sector demand (EGAT+SPP). NGV demand was flat, following gradually price rise Vol. MMCFD Q1/14 Q4/14 Q1/ YoY NG volume increase mainly due to higher GSP gas demand and new IPPs NGV demand declined slightly due to retail price adjustment amid lower oil price 12

14 Gas BU : Lower GSP and industrial margins pressured Gas BU performance E & P Gas Oil & Trading Refining PetChem Others GSP - Reference Product Prices USD/Ton 1,556 1, ,448 1, MMTHB 14, ,188 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 * Effective on February 2, 2015 ** Revised Feed cost due to re-calculated with GSP production volume instead of sale volume ***Not restated 1,746 5,668 6,881 Gas - EBITDA 9,680 1,744 3,637 5,874 6,775 4,753 3,290 2,476 (4,737) (4,865) (3,019) HDPE 1,130 PP 498* LPG Ex-GSP Naphtha Feed Cost** 35% YoY 4% QoQ 9,262 2, Q1/14 Q4/14*** Q1/15 Others GSP TM S&M NGV kton 1, GSP Sales Volume 1, , Q1/14 Q4/14 Q1/15 Key Highlights 7% QoQ 8% YoY Pentane (1%) Propane (12%) Ethane (34%) NGL (11%) LPG (42%) QoQ GSP margin continued under pressure from lower petchem prices, notwithstanding loosened LPG price ex-gsp GSP sales volume declined from weaker industrial & auto demand, following naphtha/oil prices Gas BU s EBITDA slipped slightly further, resulting from continued squeezed GSP and industrial margins, though NGV loss lowered following retail price adjustment YoY Lower performance mainly from GSP and S&M, though NGV loss decline from increased retail prices GSP: lower selling price linked to sharp-fallen petchem prices, while gas feed cost maintained S&M: lower performance, esp. from industrial customers, due to lag time between selling price and cost 13

15 Gas Business Roadmap E & P Gas Oil & Trading Refining PetChem Others Demand & Supply Key Progress LNG Terminal Phase 2 Foundation work on jetty and construction of tank roof structure Construction completed 35.96% 5th Onshore Gas Pipeline Under revision to be more suitable for the country s needs and energy security Expected to be submitted to NEPC within 2015 TPA Code TPA codes for onshore NG pipeline and LNG terminals effective as from 30th March

16 15 10 Thailand s Energy Demand/Supply: Reform Bears Fruit NGV Higher price, steady volume E & P Gas Oil & Trading Refining PetChem Others Price +24% Avg.Vol. -0.5% M.Ton LPG Lower import and sale vol. after restructuring Industry Auto Household Import Industry -19% Auto +7% Household +13% Industry +2% Auto -12% Household -2% 5 M.Litre 1,000 Jul-14 Oct-14 Jan-15 Gasoline Higher demand following lower price Sales Vol. Export Price (RHS) 0.0 Mar-15 THB/Litre M.Litre 60 2,500 Jul-14 Oct-14 Jan-15 Diesel Demand remain resilience Sales vol. Export Price (RHS) Import -35% Mar-15 THB/Litre Avg.Vol. +4% 2,000 Avg.Vol. +8% Price -19% 40 1,500 1, Price -10% Export -17% 500 Export -14% 0 Jul-14 Oct-14 Jan-15 Mar Jul-14 Oct-14 Jan-15 Mar

17 Oil BU : Volatile oil price led to continued stock loss (Month-end Prices) USD/BBL Petroleum Prices E & P Gas Oil & Trading Refining PetChem Others Average Price: Q1/15 Q1/14 % YoY Gasoil 0.05%S % Mogas % Dubai % MM Liter Sales Volume 2/ 3% QoQ 1% YoY 6,306 6,209 6,386 Contribution Margin 1/ THB/Liter % QoQ 12% YoY Q1/14 Q4/14 Q1/15 2 / Only PTT and PTTRM Q1/14 Q4/14 Q1/15 Stock Gain/Loss (MMTHB) (78) (3,616) (1,229) 1/ Excluded non oil business MMTHB 5,042 4,427 * EBITDA from Operating ** Not restated Oil - EBITDA 3,927 3, (948) 746 Q1/14 (236) Q4/14** Q1/15 1,564% QoQ 22% YoY Oil Non-Oil* Key Highlights QoQ Monthly oil price volatility in Q1/15 led to continued stock loss. However, contribution margin increased from lower stock loss. Volume increased from higher demand, following lower oil price Significantly better EBITDA performance as a result of improved margin YoY Margin declined as a result of stock loss from tumbled oil price Better sales volume mainly from gasoline, diesel and aviation Better non-oil business performance from branch expansion EBITDA decreased mainly due to stock loss 16

18 17 Oil BU : Growing PTT internationally to be regional top brand E & P Gas Oil & Trading Refining PetChem Others BrandAge Thailand's Most Admired Brand 2015 PTT Station has been voted for 12 consecutive years ( ) Lubricant Products gains popularity among consumers and has been voted to be number 1 for 5 consecutive years 19 stations 57 stations Double number of stations in 4 ASEAN countries Target 264 stations by 2018 (Currently stations) 138 stations 50 stations 17

19 Trading BU : Performance declined YoY from squeezed margin E & P Gas Oil & Trading Refining PetChem Others Contribution Margin* Sales Volume Contribution Margin (THB/Liter) 0% QoQ 54% YoY Q1/14 Q4/14 Q1/15 * PTT only : FX Adjustment in compliance with Accounting Standard 29% QoQ 50% YoY NWS ($/BBL) MM Liter 17,232 19,527 3% QoQ 17% YoY 20,144 Q1/14 Q4/14 Q1/15 Trading - EBITDA* Key Highlights MMTHB 324% QoQ 62% YoY QoQ Sales volume increased mainly from crude import to refineries and new gasoline blending strategy EBITDA improve from no non-recurring item 1, (331) Q1/14 Q4/14** Q1/15 YoY Margins squeezed from higher condensate discount Increased sales volume from refineries back to operations and new gasoline blending strategy EBITDA declined mainly from lower margins of condensate business * PTT only : FX Adjustment in compliance with Accounting Standard ** Not restated 18

20 19 Trading BU : Going Forward Turning uncertainties into opportunities E & P Gas Oil & Trading Refining PetChem Others

21 Refineries : Q1/2015 Updates E & P Gas Oil & Trading Refining PetChem Others Maximized refinery run at 106% while optimized Aromatics at 66% & Lube at 79% Feb : Purchase of Land belonging to TPI Aromatics Plc : Government Pension Fund, taking opportunity of improving share price, reduced stake in IRPC from 4.93% to 0.62% Apr : Start up the Vacuum Gas Oil Hydro Treating Unit since 12 April 2015 Feb : Purchasing Cogeneration Power Plant from PTT Mar : Investment in solar power plant project in Japan and establishment of a new subsidiary (Bangchak Solar Energy Company) Mar : SPRC and the Ministry of Energy signed the 3 rd amendment to the COA, allowing for resumption of IPO process 20

22 Refining BU: Higher GRM s and no shutdown provided better performance Dubai USD/BBL A/C GIM A/C GRM Mkt GRM GRM/GIM E & P Gas Oil & Trading Refining PetChem Others 51.9 A/C GIM QoQ: 380% YoY: % Aromatics Production 95% USD/Ton Aromatics YoY BZ: 66% PX: 7% % QoQ 66% BZ: 53% 252 PX: 1% 255 Stock Gain/Loss (2.40) (4.23) Q1/14 Q4/14 Q1/ PX-ULG95 BZ-ULG95 Q1/14 Q4/14 Q1/15 Refinery Utilization Aggregated Intake (KBD) U-Rate (%) Q1/14 Q4/14 Q1/15 Aggregated U-Rate TOP (23 days ) IRPC T/A (38 days ) SPRC T/A BCP QoQ: 0.1% YoY: 15% 2,468 3,200 1,562 TOP BCP (1,174) SPRC Net Income (100%) 344 IRPC (6,444) YoY: 274% QoQ: >1,000% (2,489) (5,779) (6,100) 4,498 2,601 11,968 1,037 (20,812) Q1/14 Q4/14 Q1/15 3,832 21

23 Refineries : Subsequent/Projects Updates E & P Gas Oil & Trading Refining PetChem Others Ongoing Projects: LABIX : 92% progress SPP : 74% progress Lorry Expansion Project : COD 2H 2016 UHV: Progress 97% %, COD within 2015 JVs: IRPC A & L : Distribute ABS Products IRPC Polyol & PCC Rokita SA (Poland) : High value specialty products IRPC Clean Power :To produce electricity and steam for EGAT s SPP and UHV project PPE+PPC: Focus on propylene & polypropylene chain due to solid competitive advantage (Total PP Capacity 775 KTA) Divestment of Shares in BCP (27.22%) to Vayupak Fund % and the Social Security Office 11.96% IPO: Target within

24 Petrochemical BU: Pressured Olefins prices alleviated by Refinery and Aromatics margins CDU U-Rate USD/BBL Refineries 101% 101% 102% (7.69) 5.98 Mkt GRM A/C GRM Q1/14 Q4/14 Q1/15 Stock Gain/Loss Net NRV E & P Gas Oil & Trading Refining PetChem Others A/C GRM YoY: 1% QoQ 154% BTX U-Rate USD/Ton 91% 380 BZ-Cond Aromatics Mkt P2F Aromatics YoY 63% BZ-Cond: 43% PX:-Cond 14% PX-Cond QoQ 217 Q1/14 Q4/14 Q1/15 89% BZ-Cond: 32% PX-Cond: 17% Mkt P2F YoY: 32% QoQ 34% Olefins Net Income (100%) Olefins U-Rate 77% USD/Ton 1,555 1,562 YoY HDPE: 24% PP: 26% 1, % 1,459 96% QoQ HDPE: 18% PP: 21% 1,188 1,149 Unit : MMTHB 7,948 6,320 YoY: 13% QoQ: 290% 6,944 5,631 Others HMC PTTGC HDPE Price PP Price -4,780 Q1/14 Q4/14 Q1/15 (3,652) Q1/14 Q4/14 Q1/15 23

25 M&A PTTGC Petrochemical : Project Updates E & P Gas Oil & Trading Refining PetChem Others Project Timeline TOCGC : ARO 2 Phenol II : Progress 85% Debottlenecking: Progress 97% COD: 3Q15 Progress 76% COD: 4Q15 COD: 4Q15 mlldpe: COD: 2018 HDI Derivatives Plant: Progress 72% COD: 4Q15 HDI Monomer: COD: 2Q16 PO/Polyol: COD: 4Q19 US Petrochemical Complex: FID: 3Q16 COD: 4Q20 Indo Petrochemical Complex: FID: by 2Q17 COD:

26 Other Businesses : Coal - SAR (95.26%) Cost reduction initiative relieved the effect of continuing coal price decline E & P Gas Oil & Trading Refining PetChem Others Avg. Selling Price & Cash cost Sales Volume USD/Ton New 78 Castle Avg. Selling Price Cash Costs YoY QoQ 15% 3% 18% 5% 24% 8% kton 2, ,958 2, ,645 12% YoY 13% QoQ 2, ,968 Sebuku Jembayan Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 EBITDA & Net Income (100%) MMUSD YoY QoQ EBITDA 11% 32% NI 7% 1,027% 42.6 EBITDA NI Q1/14 Q4/14 Q1/15 Q1/14 Q4/14 Q1/15 Key Highlights QoQ Sales volume increased ahead of low season from increased spot sales in February, following higher price. Cash cost improved from cost saving initiatives, including negotiation of new fuel oil supply and light vehicle contracts used in Sebuku and Jembayan. YoY Sales volume decreased as coal price dropped from oversupply Net income increased as efficiency improvement and cost reduction paid off. 25

27 Other Businesses : Power - GPSC (22.58%) Better performance from higher power and steam sales E & P Gas Oil & Trading Refining PetChem Others Sales Volume Net Income* (100%) GWh 000 Ton Power Steam YoY 44 % 11 % QoQ 3 % 4 % 1,966 2,028 MMBaht % YoY 29 % QoQ 460 1,413 Power 1,111 Steam 1,279 Q1/14 Q4/14 Q1/15 Diversified Assets 32 MW (2%) 347 MW (19%) Capacity* 1,472 MW (79%) Natural Gas Hydro Renewable * Exclude capacity Natural Gas of steam Hydro and water Renewable Total Capacity: 1,851 MW 1,233 *Adj.TFRIC 4 QoQ 71 Q1/14 Q4/14 Q1/15 Key Highlights Higher power sales volume mainly due to Sriracha plant unplanned shutdown in Q4 14. Hence better performance /net income. YoY Power sales volume increased due to Sriracha plant planned shutdown in Q1/14. Steam sales volume increased mainly from higher customer demand. Better performance due to higher power and steam sales. 26

28 Other Businesses : Power GPSC (22.58%) Project Updates GPSC s Growth Strategy E & P Gas Oil & Trading Refining PetChem Others Additional 600-1,000 MW during 5 years +321 MW +154 MW +38 MW +23 MW 2,451-2,851 MW Additional 600-1,000 MW Secured 1,851 MW GPSC s aspiration MW breakdown in % Renewable 12% Hydro 12% Coal 64% Natural Gas 1,315 MW GPSC, BIC, RPC, CHPP, TSR IRPCXP Phase I NNEG IRPCCP Phase II, BIC, NamLik1 XAYABURI Total Capacity in 2019 Highlight Activities 2015 Solar Power Plant in Japan GPSC acquire 99% share on Ichinoseki Solar Power - 1 GK company Size : 20.8 MW COD: approximately 2017 Waste Management Project Biomass Power Plant in Rayong Province Size : 6-9 MW of electricity GPSC is in a process of preparing related contracts and agreements. 27

29 New accounting policy adoption: Pack 5 Significant impacts on PTT Group consolidated financial statements TFRS 10 : Consolidated Financial Statements: Change in definition of control of a subsidiary to be more comprehensive, by assessing De Facto Control criteria. 8 associates in PTT Group changed to subsidiaries, namely, PTTGC, TOP, IRPC, GPSC, TP, PTTES, PTTME, and PTTICT Hence, changed from equity method to line-by-line consolidation TFRS 11 : Joint Arrangements: Change in the recognition of share of income from investment in a joint venture. Past 2 options : 1. Proportionate Consolidation 2. Equity Method Present Only one method: Equity Method PTT ceased proportionate consolidation and applied equity method In 6 joint ventures, namely, TTMT, TTMM, DCAP, PTTMCC, PTTAC and HMC Income Statement (Year 2014) : Balance Sheet (31 Dec 14) : Revenue decreased 8% EBITDA increased 17% Net Income No Impact Impact to FS Assets increased 26% Liabilities increased 31% Equity increased 22% Significantly increased 28

30 29 Pack 5 Adoption: PTT Group Accounting Structure Change

31 PTT Consolidated Performance: Q1/2015 Dubai (USD/BBL) ,538 22,584 Q1/14 Q4/14* Q1/15 (26,649) 13% Q1/14 5% 4% 48% 30% Q1/15 Others Unit : MMTHB 1% 20% QoQ Refining 15% 1% 17% 684, ,851 25% YoY PetChem PTT - Oil & Trading Revenue 515,583 12% 13% Revenue 47% Revenue 53% 5% 6% PTTEP 12% 18% EBITDA Net Income *Not restated Q1/14 Q4/14* Q1/15 78,726 51,854 9% YoY 71,739 Q1/14 Q4/14* Q1/15 38% QoQ 185% QoQ 21% YoY 14% 7% 18% 6% 2% EBITDA Net Income 53% PTT - Gas Others 4% Refining 16% PetChem 14% EBITDA 6% PTT - Oil & Trading 12% 15% PetChem PTT - Gas Others 10% Refining 25% 21% Net Income 29% 48% PTTEP PTTEP PTT 30

32 31 PTT Group Performance : Q1/2015 Performance 100% % share Equity Method % PTT Unit : MMTHB Q1/14 (Restate) Q1/15 YoY Q1/14 (Restate) Q1/15 YoY PTT Net operating Income 13,711 6,638-52% 13,711 6,638-52% E&P - PTTEP 12,435 8,616-31% 65.29% 8,422 5,616-33% - PTTGC 6,320 5,631-11% 48.89% 3,050 2,684-12% - HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/ PTTME/PTTMCC/PMMA 1,628 1,313-19% 40-50% % Petrochemical 7,948 6,944-13% 3,816 3,319-13% - TOP 2,468 4,498 82% 49.10% 1,243 2,217 78% - IRPC 344 3, % 38.51% 202 1, % - SPRC -1,174 2, % 36.00% % - BCP 1,562 1,037-34% 27.22% % Refining 3,200 11, % 1,526 4, % Inter - PTTER, PTTGE % 100% % Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 1,434 1,111-23% % 1,018 1,042 2% Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG % 20-30% % Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others 971 1,463 51% % 542 1, % Others Business 2,115 3,081 46% 1,063 2, % Shared of Net Income from Affiliates 25,698 30,609 19% 14,827 15,946 8% PTT Conso. Net Income 39,409 37,247-5% 28,538 22,584-21%

33 Statements of Consolidated Cash Flows : Q1/2015 Operating Q1/14 91,258 Q1/15 104,337 Net Income 28,538 22,584 Changes in assets & liabilities 11,749 43,082 Income Tax -3,104-2,037 Non-Cash Adjustment 47,429 34,450 Interest-net 6,646 6,258 Investing Q1/14-39,231 Q1/15-87,624 CAPEX(PP&E, Intangible asset) -40,213-46,059 Investment (Sub. &Affiliates) Dividend/Interest Received 830 1,276 Others ,273 Free Cash flow 52,027 16,713 Financing -4,428-26,964 Repayment Loans -23,801-12,859 Interest paid -8,535-7,835 Dividend paid Received from share issue Received from loans/bonds 28,628-6,383 Adjustment -1,118 1,019 Beginning Cash and Cash Equivalents 196, ,212 Cash In/(Out) 46,481-9, Ending Cash & Cash Equivalents 243, ,980 32

34 Statement of Financial Position MMTHB Cash & S/T Invest Other Current Assets Others Noncurrent Assets 2,250,455 1,805,041 1,818, , , % 2,244, , , , , , , , ,361 Other Liabilities L/T Liabilities (incl. due within 1 yr) Assets slightly declined : Drop in inventory and A/R was primarily from international trading business due to reduction in inventory in transit, as of year-end (0.1) Q1/ Net Debt/EBITDA Net Debt/Equity PP&E 1,105,147 1,054,694 1,104,299 1,078,330 Total Equity PTT Ratings at Sovereign Level FC : Moody s (Baa1), S&P (BBB+), JCR (A-), FITCH (BBB+) 1 31 Dec Mar Sep LC : Moody s (Baa1), S&P (BBB+), JCR (A), FITCH (A-) 33

35 34 PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 299 bn* ($9bn) during CAPEX revision : CAPEX lower by ~ $1 bn from $10 bn previously Reduction mainly from the 2 nd Phase of LPG import facilities project (Oil BU), given potential fall in LPG import Investment in Gas BU maintained, incl. NG transmission pipeline, LNG import capability enhancement CAPEX Breakdown : 5 Years By Business Unit JV & Investment in Subsidiaries 29% M&A and Investment Oversea LNG Unit: MMTHB LNG, M&A and Investment Oversea New Station Development 4 th pipeline & extension 77,280 5,519 24,416 3,311 9,149 34,885 Infrastructure Investment in Joint Venture and Its subsidiaries R&D and Others Oil and International Trading Natural Gas 38, ,034 5,763 4,708 19,398 R&D, Others 5% Infrastructure 2% Oil &Trading 62,581 60,988 58, ,432 16,906 18,169 2,214 2,882 7,040 1,177 1,222 2,777 33,876 40,008 36,751 Gas 55%

36 35 Contents Overview Performance Q1/ Outlook

37 Economic Outlook : Challenges Ahead US Market : Economy continue to grow : - Low Oil Price helps to support private consumption - Fed possibly delays plan to increase policy rate to 2H 15 : - Appreciation of US dollar affected export. EU market: Sign on Recovery : - Positive sign of EU economic recovery resulted from QE : - Risks of deflationary and debt issues especially in Greece China market: conservative growth : - Accommodative monetary policy to maintain GDP growth target at 7.0% : - Weak industrial production and the stagnation in real estate sector AEC market : Government measure to boost economic growth : - Accommodative policy measures help to boost domestic demand : - Exchange rate volatility Thailand market: Expected to slowly recover : - Tourism continues to recover after the cancellation of Martial law : - Delays in government investment projects - Slower-than-expected recovery in export sector PTT Performance: resilient earning amid low oil price environment : - Energy reform on track : - Uncertainty on Global Economics affects to global reference price 36 36

38 Henry Hub / JKM Price Outlook: Gas price trend to move lower from higher supply US LNG Export Terminal Projects LNG Global Demand/Supply Excess Supply expected in L-T Henry Hub Natural Gas Price Forecast Factors to watch Still-on-going in shale production Japan-Korea Market Price Forecast Factors to watch Lower-than-expected heating demand as mild weather Average JKM price 2014 = $/MMBtu Yemen LNG declared FM as result of security deterioration in LNG Plants North Asia buyers might have additional demand during summer period Korea and China LNG demand are lower-than-expected as Nuclear Reactor starting up as well as slow economy respectively. Mild Weather in winter swept across North Asia region Expected JKM price Y $/MMBtu Current 7.15 $/MMBtu Source : EIA Annual Outlook, April

39 USD/bbl Crude Oil Outlook: Oversupply conditions persist MBD surplus World Oil Demand/Supply Balance surplus surplus surplus MBD World Oil Supply surplus trend to lower in 2H 2015 mainly from the U.S. oil production growth show sign of deceleration Q1/15 Q2/15 Q3/15 Q4/15 World oil Demand(LHS) Stockbuild*(RHS) Source: BOAML, IEA, P Dubai $96.6/bbl World Oil Supply(LHS) Crude Oil Price Forecast in Y2015 range bound $/bbl Dubai Forecast Y2015 Range $50-60/bbl Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 WTI Brent Dubai Dubai Forecast (PTT Group PRISM) Column2 Source: (PTT Group) Estimated ( ) Factors to watch Clearer sign of the U.S. production growth slowdown Geopolitical tension in Yemen, Libya Market expect production policy change in Saudi Aramco after major reshuffles of top management Prospects of Iran Sanctions being lifted following a comprehensive deal over its nuclear programme Peak Global refinery maintenance in Q2/15 38

40 USD/bbl Refinery Margin Outlook : Refinery turnaround season in Q2/15 effect products supply tighten CDU Additional Vs Additional Demand AP&ME Demand & Supply in AP/ME improved from earlier expected as a result of the postponement of Indian refinery start up Note: Adjusted capacity based on start-up period (Effective additional capacity) Source: FACTs Semi Annual Reports, October 2014, reuters, Bloomberg, TOP estimate V Singapore GRM Forecast in Y2015 to be around 7-8$/bbl Forecast GO Mogas FO Factors to watch Schedule refinery turnaround in North Asia in Q2/15 Delayed refinery expansion in India High fuel oil inflows from Russia New Barrel from new ME refinery Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Source: FACTS, DB, KBC, Reuters, IEA, Reuters, Thaioil and PRISM Estimated ( May 2015) 39

41 Jan- 14 J u l - 14 Jan- 15 J u l - 15 USD/Ton Petrochemical Outlook: Strong ethylene and propylene prices due to tight demand/supply Asia Ethylene Supply/Demand Balance Asia Propylene Supply/Demand Balance Olefins Product Spread 1,000 Y 2015 Olefins Product Spread Forecast in Y2015 HDPE-Naphtha expected to be around USD/TON PP-Naphtha expected to be around USD/TON Factors to watch Stable-to-firm energy price Anticipated tight supplies and demands for PE and PP 0 Poor affordability for PE derivatives Source: HIS, ICIS and PRISM Spread HDPE Spread PP New supplies in regional weight down market sentiment 40

42 Jan- 14 J u l - 14 Jan- 15 J u l - 15 USD/Ton Capacity Available% Petrochemical Outlook: Better Benzene and PX sentiments driven from stable-to-firm in crude oil price Aromatics Product Spread Aromatics Product Spread Forecast in Y2015 BZ-Naphtha forecasted to be around USD/TON PX-Naphtha forecasted to be around USD/TON Factors to watch Stable-to-firm crude oil price Demands from new downstream derivative SM and phenol plants New benzene capacity and production in Asia together with the extremely large scale of new PX plants. Spread BZ Spread PX China economy expands slower than Source: HIS, ICIS and PRISM expect 41

43 Thank you PTT Public Company Limited Investor Relations Department Tel , Fax , ir@pttplc.com Website: Disclaimer 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 our assumptions are correct. Actual results may differ materially from those projected. Petroleum Reserves and Resources Information In this presentation, the Company discloses petroleum reserves and resources that are not included in the Securities Exchange and Commission of Thailand (SEC) Annual Registration Statement Form 56-1 under Supplemental Information on Petroleum Exploration and Production Activities. The reserves and resources data contained in this presentation reflects the Company s best estimates of its reserves and resources. While the Company periodically obtains an independent audit of a portion of its proved reserves, no independent qualified reserves evaluator or auditor was involved in the preparation of reserves and resources data disclosed in this presentation. Unless stated otherwise, reserves and resources are stated at the Company s gross basis. This presentation may contain the terms proved reserves, probable reserves, and/or contingent resources. Unless stated otherwise, the Company adopts similar description as defined by the Society of Petroleum Engineers. Proved Reserves - Proved reserves are defined as those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulations. Probable Reserves - Probable reserves are defined as those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable. Contingent Resources Contingent resources are defined as those quantities of petroleum which are estimated, on a given date, 42 to be potentially recoverable from known accumulations, but which are not currently considered to be commercially recoverable. The reasons for non commerciality could be economic including market availability, political, environmental, or technological.

44 Debt Profile : Control Cost & Manage Risk Managed debt according to financial risk and policy Debt Portfolio Unit : MMTHB PTT Only Consolidated : Cost of debts ~ 4.58% : % fixed-rate ~ 77% : Avg. debt life ~ 8.18 years : Cost of debts ~ 4.50% : % fixed-rate ~ 74% : Avg. debt life ~ 7.03 years USD THB 689, , , , ,507 (44%) (44%) 307, , , ,972 83,985 82,971 (35%) 259, , , , ,298 (65%) (29%) (71%) (30%) (70%) (49%) (51%) 384, ,554 (56%) (56%) 31 Dec Dec Mar Dec Dec Mar 15 Note : Data as of 31 Mar 15 (THB/USD = THB/JPY = ) Excluding liabilities from finance leases; Cost of debts includes withholding tax

45 Statements of Cash Flows (PTT Only) : Q1/2015 Operating Q1/14 24,301 Q1/15 18,806 Net Income 21,558 12,083 Changes in assets & liabilities 5,266 8,046 Income Tax Non-Cash Adjustment -3,880-2,563 Interest - net 2,097 1,742 Investing Q1/14-2,629 Q1/15-19,403 CAPEX (PP&E, Intangible asset) -6,557-8,643 Investment (Sub. &Affiliates) Dividend/Interest Received Others 3,132-11,005 Free Cash flow 21, Financing -2,627-8,378 Repayment Loans ,645 Interest paid -2,934-2,555 Dividend paid -4 0 Received from share issue - - Received from loans/bonds Adjustment Beginning Cash and Cash Equivalents Cash In/(Out) Ending Cash & Cash Equivalents 63,926 58,018 19,045-9, ,971 48,983 44

46 Dividend Policy & Historical Payments PTT is firmly committed to pay dividend at no less than 25% of net income Overview Performance 2015 Outlook 32.4% 32.6% 29.8% 30.1% 30.3% 30.8% 33.0% 43.6% 40.4% 34.7% 34.9% 35.5% 40.0% 56.9% PTT s minimum payout ratio 25% 25% Baht / share Dividend payout EPS DPS Interim

47 Data as of 31 March 2014 E&P and Gas Business Group Oil Business Group Petrochemicals & Refining Business Group Subsidiaries Consolidate PTT Exploration & Production Plc. PTTEP 65.29% PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00% PTT LNG Co., Ltd. PTTLNG % Thai Oil Power Co., Ltd.* TP 26.00% Global Power Synergy Co., Ltd* GPSC 30.10% Joint Ventures Equity Trans 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% Subsidiaries Consolidate PTT (Cambodia) Co., Ltd. PTTCL % Subic Bay Energy Co., Ltd. SBECL % PTT Retail Business Co., Ltd. PTTRB % Thai Lube Blending Co., Ltd. TLBC** 48.95% PTT Tank Terminal Co., Ltd. PTTTANK % PTT Oil Myanmar Co., Ltd. PTTOM % Associates Equity Keloil-PTT LPG Sdn. Bhd. KPL 40.00% Thai Petroleum Pipeline Co., Ltd.THAPPLINE 40.40% PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00% Others Cost PetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00% PetroAsia (Sanshui) Co., Ltd. PA(Sanshui) 25.00% Intoplane Services Co., Ltd. IPS 16.67% Fuel Pipeline Transportation Co., Ltd.FPT % Others Fair Value Bangkok Aviation Fuel Services Plc. BAFS 7.06% Petrochemical Subsidiaries Consolidate PTT Polymer Marketing Co., Ltd. PTTPM 50.00% PTT Polymer Logistics Co., Ltd. PTTPL % PTT PMMA Co., Ltd. PTTPMMA % PTT Global Chemical Plc.* PTTGC 48.89% PTT Maintenance and Engineering* PTTME 40.00% PTT Energy Solutions Co., Ltd.* PTTES 40.00% Joint Ventures Equity HMC Polymers Co., Ltd. HMC 41.44% PTT Asahi Chemical Co., Ltd. PTTAC 48.50% PTT MCC Biochem Co., Ltd. PTTMCC 50.00% Refining Subsidiaries Consolidate Thai Oil Plc.* TOP 49.10% IRPC Plc.* IRPC 38.51% Refining Associates Equity Star Petroleum Refining Co., Ltd. SPRC 36.00% Bangchak Petroleum Plc. BCP 27.22% International Trading Business Group Subsidiaries Consolidate PTT International Trading Pte. PTTT % International Investment Subsidiaries Consolidate PTT Energy Resources Co., Ltd. PTTER % PTT Green Energy Pte. Ltd PTTGE % Others Subsidiaries Consolidate Others Fair Value Energy Complex Co., Ltd. EnCo 50.00% Dhipaya Insurance Plc. TIP 13.33% Business Service Alliance Co., Ltd. BSA * 25.00% PTT Regional Treasury Center Pte. Ltd. PTTRTC % PTT ICT Solutions Co., Ltd.* PTTICT 20.00% 46 Remark : *The companies have changed their status to subsidiaries due to impact from PACK5 ** Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies. 46

48 Natural Gas Price Structure : Jan-Mar 2015 Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns. Customers 1 Sales Price Structure Gas Pool Price + Supply Margins + Pipeline Tariffs Power Producers 59% : EGAT 27% : IPP 17% : SPP 15% Average Purchased Gas Price 1.75% 1.75% 9.33% 21.9 Bt/MMBtu GSP 20% Charged at the same price structure of power producers Petrochemicals Feedstocks Ethane, Propane, LPG NGL Local Cooking Gas Export Cooking Gas Profit-sharing mechanism based on market prices of petrochemicals Reference to Naphtha market price At GSPs cost (adjusted every 3 months) Reference to Saudi Aramco s contract price Industry 14% Charged at prices comparable to fuel oil NGV 7% Capped at Baht/Kg from Jan 2015 Contract periods are ~ years or until depletion of gas fields or the expiration of concessions 1 As at March

49 Natural Gas : Strong and Increasing Demand over Long Term Natural gas is a fuel of choice for power producers and transportation industry Source : PTT 48 48

50 Thailand s Projected Energy Demand Primary Energy Consumption KBD , ,052 2% 11% 15% 40% 2,438 Hydro/Import 2% Renewable 13% Coal/Lignite 16% 38% Natural Gas 2,840 4% 13% 18% 36% 5% 13% 20% 34% % 31% Oil 29% 28% 0 Source : EPPO/ PDP 2015 Preliminary ( Jan 2015) / PTT analysis as of Jan

51 50 Gas Business Generates Stable Returns Overview Gas transmission pipeline capacity Sole owner and operator of entire gas transmission pipelines in Thailand (> 3,000 km), a regulated business IRROE ranges between 12.5% - 18% for transmission pipeline investment Supply & marketing of natural gas provides fixed margin with long-term contracts of years 6 Gas Separation Plants; Total production 6.7 MTA; are on petrochemical market price-linked profit sharing basis Yadana Yetagun Andaman Sea Ban I Tong Thailand Nakhon Sawan Wang Noi NBK Ratchaburi SBK The Luang Samut Prakan ESB Phu Hom Nam Phong Nakhon Ratchasima Kaong Khoi Bang Pakong Chon Buri Rayong Khanom Songkhla Sadao Benchamas Tantawan Platong Chevron Additional Arthit FPSO Erawan Arthit Pailin Bongkot South Bongkot 50 Thai-Malaysia (JDA) Natural gas fields Power plants Gas separation plant 1,2,3,5,6 in Rayong Gas separation unit 4 in Nakhon Si Thammarat Existing pipeline Future pipeline