Asian Investment Conference, Hong Kong March 19-20, 2013

Transcription

1 Asian Investment Conference, Hong Kong March 19-20, 2013

2 1 Contents Overview Performance 2013 Outlook

3 Oil Balance Thailand: Jan - Dec 2012 Adequate refining capacity maintains the stability of supply Supply Production Sales Import (81%) 923 KBD Imported Refined Petroleum Products 68 KBD Crude/ Condensate 855 KBD Total Refining Capacity in Thailand: 1,087 KBD Refined Products 960 KBD* Domestic Indigenous (19%) 216 KBD Crude/ Condensate 173 KBD PTT s Associated Refineries : 910 KBD (TOP, PTTGC, SPRC, IRPC, BCP) Refined Products 206 KBD 810 KBD (**) Export Other Refineries : 177 KBD (ESSO) Crude Export 43 KBD 249 KBD Source: PTIT Remark : (*)Refined product from refineries= 865 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 95 KBD (**) Not included Inventory KBD = Thousand Barrels per day 2

4 Natural Gas Balance: Jan Dec 2012 Main driver of the Thai economy Indigenous (79%) 3,591 MMSCFD Others 42% Supply Production Sales Myanmar 86% Chevron 31% PTTEP 27% Import (21%) 959 MMSCFD LNG 14% 2,541 MMSCFD 6 GSPs Total Capacity 2,740 MMSCFD Pipeline 1,049 MMSCFD 959 MMSCFD Ethane/ Propane/ LPG/NGL 958 MMSCFD (21%) LPG/NGL Methane 1,583 MMSCFD Petrochemical Feedstock (14%) Industry Household Transportation (7%) Power (59%) Industry (14%) NGV (6%) Remark: MMSCFD = Million Cubic Heating Value 1,000 Btu/ft 3 3

5 PTT is Thailand s Largest Energy Company PTT Public Limited Company ( PTT ) Largest company on Thai Stock exchange Market cap ~US$30bn 1 Group companies:18.5% 1 of Thai Stock Exchange market capitalization Majority owned by Thai government (66%) 51% by Ministry of Finance 15% by Vayupak Fund Fully integrated and highly diversified over the entire O&G value chain International exploration and production business with 901 mmboe 2 of proved reserves Sole operator and owner of gas transmission pipelines and GSPs in Thailand Largest refinery group in Thailand with stakes in 5 of 6 refineries in the country Largest petrochemical producer group in Thailand with stakes in 6 of 8 major petrochemical plants Leading oil marketing business with 1,352 retail stations and 38% 2 of market share by volume International oil trading business having traded 68.4 bn liters in 2012 Coal business assets in Indonesia, Madagascar, and Brunei 1 As of December 28, As of December 2012 Note: THB/US$ exchange rate of Robust revenue and Net Income growth since IPO (MMUSD) Revenue Net Income 12, % 81% 3,489 57% 43% IPO International and local recognition Asia Talent Management 10 th Asia Business Leaders Award 2011 Award in 2012 Best CEO Best CFO Best Managed Company Best Corporate Governance Best Investor Relations Best CSR Best Commitment to Strong Dividend Policy 8th Top Asia overall Performance of rd Top Asia Integrated Oil & Gas of 2011 SET Awards Top Corporate Governance Report Award 2010 & 2011 Best Corporate Social Responsibility Awards ,128 Affiliate PTT 95 th Fortune Global 500 in th in th in th in 2009 Dow Jones Sustainability Index Listed in September 2012 Listed in January

6 PTT s Strategic Importance to Thailand Ministry of Finance holds majority stake in PTT PTT ratings at Thai sovereign level Public 34% Foreign 18% Thai 16% Thai Ministry of Finance 51% Kingdom of Thailand FC Baa1 BBB+ BBB+ A- PTT FC Baa1 BBB+ BBB+ A- Vayupak Fund 1 15% PTT LC Baa1 BBB+ A- A Note: As of September 10, 2012 Largest market cap on the Thai Stock Exchange PTT PTTEP PTTGC TOP IRPC BCP Total Others Market cap (BNUSD) % of SET 8.0% 5.5% 2.7% 1.2% 0.7% 0.4% 18.5% 81.5% Moody s rating Baa1 Baa1 Baa2 Baa1 Baa3 N.A. - - S&P rating BBB+ BBB+ BBB BBB BBB- N.A The Vayupak Fund is a registered investment management fund in Thailand in which the Government is a major unit holder. The Government has rights of first refusal with respect to any of our shares to be sold by the fund. Although the fund s shareholding may be considered to be beneficially owned by the Government under international standards, such shares are not considered to be owned by the Government for the purposes of Thai law or our compliance with certain of our debt covenants 2 Based on Bloomberg data as of as of December 28, THB/US$ exchange rate of

7 New Business Downstream Intermediate Upstream Our Major Businesses & Activities Business Areas Company PTT s holding (%) Activities E&P PTTEP 65.29% Exploration and Production Gas Oil Marketing Int l Trading PTT PLC Gas Pipeline 100% Sole owner/operator of the Transmission pipeline S&M 100% Supply & Marketing of Natural Gas GSP 100% Extracting Hydrocarbon contents in NG for Petrochemical s feedstock Oil Marketing 100% Retail service Stations and commercial Marketing Int l Trading 100% Import/Export/Out-Out trading of petroleum and petrochemical products Petrochemic al & Refining PTTGC 48.89% Petrochemical Flagship TOP 49.10% Integrated Refinery & Petrochemical IRPC 38.51% Integrated Refinery & Petrochemical SPRC 36.00% Stand alone Complex Refinery BCP 27.22% Complex Refinery & Retail Stations International PTT Inter 100% Overseas investment arm of PTT : Coal, New energy and related businesses 6

8 7 PTT Aspiration Strategic direction and target to achieve Big-Long-Strong aspiration Thai Premier Multinational Energy Company Strong TOP Quartile ROIC Big Long Ranked Fortune 95 th Listed in DJSI since 2011 Technologically Advanced and Green National Oil Company

9 Net Income Performance: 2012 vs 2011 Unit : MMUSD 2% 3,542 3, Refinery 295 Crude intake increase 1% Avg. GIM decrease 32%, mainly from stock loss 592 Petrochem 627 Sales vol. increase 8% Soften spread margin PTTEP 1,019 1,206 Avg. selling price increase 17% Sales vol. increase 4% Impairment on Montara assets 204 MMUSD 1,594 PTT 1,508 Others (111) (147) NG sales vol. increase 9% Avg. GSP sales vol. increase 11% Oil vol. increase 6% Oil margin increase 15% NGV loss increase 73% Avg. NG gas cost increase 22% Impairment on EMG 3,972 MMTHB (132 MMUSD) * Including Gain (Loss) on sales of investments in Associates = 19 MMUSD 8

10 9 Contents Overview Performance 2013 Outlook

11 Exploration & Production Performance : PTTEP (65.29%) E & P Gas Oil & Trading Refining PetChem Others Product Prices Net Income (100%) 2% % % 17% % 27% Liquid (USD/BBL) Weighted Avg. (USD/BOE) Gas (USD/MMBTU) Unit: MMUSD % 449 1,468 26% 1,846 Q3/12 Q4/ Sales Volume Unit: KBOED 1% 4% Liquid Gas Q3/12 Q4/ Q3/12 Q4/ Key Activities QoQ Sales volume increased from Bongkot South s full production and ramp up in S1 and Vietnam 16-1 Net income decreased mainly due to Montara s impairment in Q4/12 (95MMUSD) YoY Net income increased by 26% mainly due to higher selling price and sales volume, despite a crease production of Arthit North since Nov 1,

12 Exploration & Production Roadmap : PTTEP E & P Gas Oil & Trading Refining PetChem Others Unit: KBOED Target Sales Volume Reserves and Resources Unit: MMBOE 3, % % North America Middle East & Africa Australia South East Asia 73% International 1, % 44% 50% 27% Domestic 56% P1 P1+P2 P1+P2+2C 3, Thailand % 77% 1,786 35% 65% 50% 50% P1 P1+P2 P1+P2+2C Note : P1 = Proved, P2 = Probable, 2C = Contingent Liquid Gas Montara Zawtika Algeria 433a &416b KKD Leismer Expansion Cornerc Reserves Replacement Ratio * 0.91 Reserve Life Index (year) ** 8 *Reserves Replacement Ratio : 5-Yr Additional Proved Reserves / 5-Yr Production Volume **Reserves Life Index (Year) : Proved Reserves / Production Volume 11

13 Gas Business Performance : Natural Gas E & P Gas Oil & Trading Refining PetChem Others NG Sales Volume GSP - Reference Product Prices Unit: MMSCFD Unit : USD/Ton ,284 4, ,802 4,746 4,507 4,611 4,330 4,249 4,055 4,152 4,148 3,919 AVG. 4,537 4,161 4,040 1,443 1,462 1,585 1,343 1,393 1,372 1,445 1, PP HDPE Naphtha FO 3.5% Domestic LPG Q1 Q2 Q3 Q4 NG Customer Profile Unit: MMSCFD 3% 9% 4,611 4,746 4, , NGV (6%) Industry (14%) 1, , ,356 1,328 GSP (21%) SPP (10%) IPP (20%) EGAT (29%) Q3/12 Q4/ Unit : KTon GSP Sales Volume 5% 1,667 1, ,820 11% 6, , ,906 Propane (11%) Ethane (33%) NGL (11%) LPG (45%) Q3/12 Q4/ Q3/12 Q4/

14 Gas Business Performance E & P Gas Oil & Trading Refining PetChem Others Unit: MMUSD 402 Gas BU EBITDA 23% 309 2,073 Q3/12 Q4/ Key Activities 16% 1,742 Others (9%) GSP (33%) TM (42%) S&M (16%) QoQ NG volume increased from 4,611 mmcfd to 4,746 mmcfd mainly from IPP EBITDA decreased due to more loss in NGV Industry margin squeezed due to soften fuel oil prices and increased NG feed cost YoY NG volume increased from 4,161 mmcfd to 4,537 mmcfd mainly from EGAT and industry EBITDA decreased due to an increase in NG feed cost, more loss in NGV and lower margin from GSP as capped LPG domestic sales NGV EBIT Unit: MMUSD Q3/12 Q4/ % % Vol. MMCFD Retail price /kg Subsidy/Dis count (2.00)* for public transportation YoY Sales volume increased by 13%, despite feed cost sharply increased No Government subsidy, while special discount given to public transportation customers Control retail price of NGV remains 13

15 14 Gas Business Roadmap E & P Gas Oil & Trading Refining PetChem Others Unit : MMSCFD 6,000 4,000 2, % 7% 6% 14% 17% 21% 19% 59% 57% NGV Industry GSP Power - EGAT - IPP - SPP New Supply PTTEP (Bongkot South) PTTEP (M9) LNG Phase#2 Pipeline Capacity (MMSCFD) Offshore Compressor 4th Onshore 4,380 5,580 6,980 6,980 6,980 6,980 GSP Capacity (MTA)

16 Oil Business Performance : PTT E & P Gas Oil & Trading Refining PetChem Others Contribution Margin* Oil BU - EBITDA Unit : THB/Liter 15% 15% Unit: MMUSD % % Oil Q3/12 Q4/12 * Excluded non oil business Q3/12 Q4/ Non-Oil Sales Volume Unit : MM Liter 6% 23,035 21,807 3% 5,840 5,665 Q3/12 Q4/ Key Activities QoQ Sales volume increased mainly from high seasonal demand in Q4 EBITDA increased due to higher sales volume and better aviation fuel and diesel margins YoY Record high of sales volume and margins as a resumption from the great flood EBITDA increased due to higher sales volume and better margin of diesel and aviation fuel Income from non-oil business surged 15

17 16 Oil Business Development E & P Gas Oil & Trading Refining PetChem Others PTT Innovation Growing PTT brand internationally Smart Fuel-up Technology Regional Top Brand in ASEAN PTT life Station The Crystal PTT Continue Growing Non-Oil Business PTT Blue Society: PTT Blue Card Introduced The Amazon s Embrace Café Amazon 10 th year anniversary No.1 Brand in Marketeer Magazine Branch expansion Domestic and International

18 17 International Trading Business Performance : PTT E & P Gas Oil & Trading Refining PetChem Others Unit :THB/Liter Contribution Margin* Unit: MMUSD Trading BU - EBITDA* 166% % % % Q3/12 Q4/ Q3/12 Q4/ * PTT only : Adjusted effect of FX Unit : MM Liter Sales Volume 16% 68,342 5% 59,145 18,516 17,591 Q3/12 Q4/ Key Activities QoQ Sales volume increased mainly from crude oil sold to refineries and Naphtha trading Higher margin of imported crude oil and condensate YoY Sales volume rose from crude oil and refined products from the out-out trading Margin dropped due mainly from squeezed condensate margin in relation to price structure

19 18 International Trading Business: Roadmap E & P Gas Oil & Trading Refining PetChem Others Australia S.Africa USA Shanghai Japan BKK Singapore Dubai Guangzhou Jakarta Korea London Genève India

20 Unit : USD/BBL Dubai 106 A/C GIM Refining Business Performance A/C GRM Mkt GRM Q3/12 Q4/ % 657 GRM/GIM Net Income (100%) Source : PTT, Refining Associates Note: Weighted Avg. GRM of PTT s associates complex refineries (TOP, SPRC, BCP, and IRPC) Weighted Avg. GIM of PTT s associates integrated refineries (TOP and IRPC) Account GRM/GIM = Market GRM/GIM + Hedging Gain/Loss + Stock Gain/Loss Unit : KBD Aggregated Util % Stock Gain /Loss Total Intake 91% 89% 90% 8% 1% Q3/12 Q4/ E & P Gas Oil & Trading Refining PetChem Others % 37% BCP IRPC SPRC TOP Unit: MMUSD % 1,076 Q3/12 Q4/ Key Activities 678 TOP SPRC BCP IRPC QoQ MKT GRM decreased mainly from middle distillate spreads from resumptions of refineries after turnaround Accounting GRM plummeted from stock loss BZ & PX spread margin increased from the picking up demand from US and China YoY Lower performance from the decrease in accounting GRM due to stock loss in 2012 amid concerns on European debt crisis and global economic recovery 19

21 20 Refinery Project Update E & P Gas Oil & Trading Refining PetChem Others PXMax Upgrading PX 38 KTA & BZ 82 KTA COD: Sep 2012 Solvent Expansion (SAKC) Increase capacity from 76 to 180 KTA Expected COD: 2014 Phoenix update: PRP Project Propylene Booster Propylene 100 KTA expansion COD: Oct 2012 From Licensee to Licensor IRPC step up to become the Licensor of Green ABS technology CDU no.3 Fire Incident on July 4, 2012 Resume normal operation in Q4/12 Solar Power Plant Phase II (Installed 50 MW) 25MW: Located in Bamnet Narong Chaiyaphum COD: Q1/13 25MW : Located at Bang Pa Han, Ayudhaya COD: Q1/13

22 Petrochemical Business Performance Unit : USD/Ton Spread Margins Net Income (100%) HDPE-Naphtha 4% 2% 20% 9% E & P Gas Oil & Trading Refining PetChem Others 507 PX-Naphtha Unit: MMUSD % 373 1,241 1% 1,257 Others HMC Polymers PTT Phenol PTTGC Q3/12 Q4/ Q3/12 Q4/ Q3/12 Q4/ Unit : KTon 94% Aggregated Util. Sales Volume 90% 87% 89% 8% 4% 2,918 3,155 HMC Polymers PTT Phenol PTTGC Key Activities QoQ Weaker performance due to lower utilization rate and stock loss from PTTGC s refinery unit, despite better spread margins YoY Sales volume increased from higher utilization rates in 2012, from resumption of demand from the flood in 2011, despite commercial operations in several new expansion in 2011; PTTGC s LDPE 300 KTA in Feb 2011 PTT Phenol s Bis-Phenol A 150 KTA in Q2/11 HMC Polymers s PDH 310 KTA in Feb 2011 Spread margin decreased from lower demand due to concerns on global economic recession Q3/12 Q4/

23 22 Petrochemical Project Update E & P Gas Oil & Trading Refining PetChem Others Debottleneck - PTTPE Cracker & Polymer Plants Under study plant configurations Expecting additional capacity of 15-20% Debottlenecking - PX capacity Increases ARO II capacity from 655 to 770 KTA Expected COD: Q3/15 C4 Value Enhancement Export mixed C4 to maximize value Expected COD: Q1/14 Myriant Build a semi-commercial plant Expected COD: 2H/13 MEG expansion 95 KTA expansion started commercial after the resolve of Map Ta Phut court case COD: Q4/12 PTT Asahi Chemical Start commercial operation of PTTAC AN 200 KTA MMA 70 KTA AMS 160 KTA COD: Q1/13

24 Other Businesses : Coal - SAR (93.63%) E & P Gas Oil & Trading Refining PetChem Others Avg. Selling Price & Cash cost Net Income (100%) Unit : USD/Ton Unit : MMUSD 7% 7% % % Selling price 0.2% Cash Costs % 13.5* 108.2* Q3/12 Q4/ Sales Volume Q3/12 Q4/ *unaudited Key Activities Unit : KTon 3,249 4% 2,861 10,726 1% 10,830 Sebuku Jembayan QoQ Global coal price soften on weaken demand Sales volume decreased from lower production from Sebuku mine YoY Sales volume increased from Sebuku s Northern Lease starting June 2012, despite heavy rainfall and 2 new pit development in Jembayan in 1H/12 Performance dropped due to the decreased average selling price despite the increase in sales volume Q3/12 Q4/

25 24 Other Businesses : Power GPSC (30.10%) PTT is to streamline PTT Group Power Business E & P Gas Oil & Trading Refining PetChem Others PTTUT + IPT = Global Power Synergy Company GPSC Capacity 1,357 MW (electricity 1,038 MW and steam 319 MW)

26 25 Other Businesses : Power GPSC (30.10%) Oversea Opportunities E & P Gas Oil & Trading Refining PetChem Others Myanmar Invest in hydro and coal-fired power plant in order to transmit power back to Thailand Invest in gas-fired power plant to sell electricity domestically Vietnam Laos Invest in hydro power plant Send power back to Thai s Grid Philippines Invest in gas- or coal-fired power plant PTT Group may try power pool system in Philippines Invest in coal-fired power plant Synergy with PTTI s coal business to import coal from Indonesia Indonesia Invest in coal-fired power plant Synergy with PTTI s coal business for fuel supply 25

27 PTT Consolidated Performance: 2012 Dubai (USD/BBL) Revenue 106 Unit : MMUSD 80,938 93, % PTT - Gas PTTEP 16% % 7% Others Revenue 73% PTT - Oil & Trading Others PTT - Oil & Trading 5% 5% EBITDA 7,046 8% 7,595 PTT - Gas 23% EBITDA 67% PTTEP % Refining Others Net Income 3,542 3,489 PetChem 8% -4% 18% Net 43% PTT Income EPS (THB/Share) PTTEP 35% 26

28 27 Statement of Financial Position : Solid and Secured Unit: MMUSD Cash & S/T Invest Other Current Assets Others Noncurrent Assets PP&E 4,236 8,468 13,980 20,045 48,728 12,194 13,077 21,457 Increased assets : 4th Onshore pipeline Offshore compressor PTTEP Australasia Myanmar Zawtika Bongkot 4,777 10,961 16,868 21,771 16% 54,377 15,409 14,579 24,389 Other Liabilities L/T Liabilities (incl. due within 1 yr) Total Equity Strong Financial Position ICR PTT Ratings at Sovereign Level Net Debt/EBITDA < 2.0 Net Debt/Equity < 1.0 FC : Moody s (Baa1), S&P (BBB+), JCR (A-), FITCH (BBB+) LC : Moody s (Baa1), S&P (BBB+), JCR (A), FITCH (A-) 31 Dec11 31 Dec 12

29 28 Dividend Policy & Historical Payments PTT is firmly committed to pay dividend at no less than 25% of net income % 32.6% 29.8% 30.1% 30.3% 30.8% 33.0% 43.6% 40.4% 34.7% 34.9% 35.5% UNIT : USD / share PTT s minimum payout ratio 25% Dividend payout EPS DPS

30 29 Contents Overview Performance 2013 Outlook

31 30 Economic Outlook : Challenges ahead Gradual economic growth but Fiscal Cliff concern weight down Fiscal risk is not over even though the debt ceiling battle has been suspended Eurozone economy remains weak but expected to stop shrinking as financial conditions improve No more rate cut expected from ECB UK s credit rating was downgraded Recent indicators support a strong economic recovery 2013 economic reforms are being expedited and likely to support the economy going forward Maintain the policy rate Inflationary pressure Energy policy Expected Thailand GDP growth in 2013 around % 30

32 Market Outlook : Crude Oil Monthly Avg. Dubai Crude Oil Dubai PRISM (PTT Group) Forecast Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Dubai crude oil price in 2013 is expected to be around USD/BBL The world oil demand growth is forecasted to grow by 1.0 MMBPD to reach 90.8 MMBPD in 2013 North Korea conducted its third test of a nuclear device Positive economic sentiments from major regions Prolonged geopolitical risks in the Middle East and North Africa (MENA) Source: PRISM (PTT Group) Estimated ( ) EU remained bearish Moody s cut UK s perfect rating from AAA to Aa1 Italian election may result in a hung parliament Refineries are going to a maintenance schedule together with supply rising from Non-OPEC China started up nuclear power generator (1,080 MW) 31

33 Source: FACTS, DB, KBC, Reuters, IEA, Reuters, Thaioil and PRISM Estimated ( ) 32 Market Outlook : GRM Forecast GO Mogas FO Singapore GRM in 2013 is estimated to around 6-7 USD/BBL Refineries turnaround season in 1H/2013 China economic support the world growth Net capacity added in 2013 around 640KBD Prolong European debt crisis

34 Jan-12 Source: PRISM Estimated Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct Market Outlook : Petrochemical Unit :USD/ton Spread 0 Highlights Performance 2013 Outlook Olefins Y PP HDPE Naphtha Spread 0 Aromatics Y2013 PX BZ Naphtha HDPE-Naphtha expected to be around USD/TON PP-Naphtha expected to be around USD/TON Bz-Naphtha forecasted to be around USD/TON PX-Naphtha forecasted to be around USD/TON Olefins and Aromatics spreads slightly improve Olefins prices and buying sentiment tend to increase after Chinese new year holidays PX market is bullish supported by PTA Schedule PX plant turnaround in Asia Additional capacity of both Olefins and Aromatics S/U across Asian region Uncertain economic conditions resulting in the volatility of BZ and PX derivative demand

35 PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 366bn ($12bn) during Highlights Performance 2013 Outlook Unit: MMUSD SAR tender offer M&A in coal, FLNG, power LPG import facility 4 th pipeline & extension Investment in Joint Venture and its subsidiaries Head Office and others Oil and International Trading Natural Gas 3,295 2,521 2,795 JV & Investment in Subsidiaries 53% 2,072 1,154 1,920 1,127 1, , , CAPEX Breakdown : 5 Years By Business Unit Opportunistic 43% LNG 6% Power 3% Coal 1% HO, Others 3% Gas 30% Oil & Trading 14% Note: THB/US$ exchange rate of

36 PTT Group CAPEX ~ USD 37 Bn Biochemical Specialty R & D 2% Coal FLNG Power P&R** 24% Others opportunistic 15% PTTEP 41% Thailand 56% SE Asia 21% North America 16% Australasia 4% ME & Africa 3% Gas 10% LPG facilities Onshore Pipeline LNG Terminal NGV Stations Offshore Spur Lines * Excluded M&A of Affiliates, ** PTTGC excludes new initiatives 35

37 Thank you PTT Public Company Limited Investor Relations Department Tel , Fax , ir@pttplc.com 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, 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.

38 PTT Group Performance : 2012 Performance 100% % share Equity Method % PTT Unit : MMUSD YoY YoY PTT Net operating Income 1,575 1,508-4% 1,575 1,508-4% E&P - PTTEP 1,492 1,911 28% 65.29% 1,019 1,206 18% Petro. Business 1,241 1,257 1% % - PTTGC* 1,001 1,133 13% 48.89% % - HMC/PPCL/PTTPL/PTTPM/PTTAC / PTTME/PTTTANK % 40-48% % Refining 1, % % Inter Gas & Utilities Oil & Oth. - TOP % 49.10% % - IRPC % 38.51% % - SPRC % 36.00% % - BCP % 27.22% % - PTTI group (PTTAPM,EMG,PTTML,FLNG),PTTGE % 100% % -TTM/PTTNGD/IPT/TP/DCAP/CHPP % % % - PTTRB/PTTT/SBECL/THAPPLINE/ /PTTCL/TLBC/ICT/EnCo % % % Shared of Net Income from Affiliates 3,784 3,798 37% 1,948 1,981 2% Add Gain (Loss) on sales of investments in Associates 19 0 n.m n.m. PTT Conso. Net Income 5,378 5,306-1% 3,542 3,489-2% *PTTGC performance from Pro-Forma Statement 37

39 PTT Consolidated Performance: Q4/2012 Dubai (USD/BBL) Revenue 106 Unit : MMUSD 22,868 7% 24, PTT - Gas PTTEP 17% Q4/2012 4% 7% Others Revenue 72% PTT - Oil & Trading EBITDA Q3/12 Q4/12 5% 1,877 1,777 Others PTT - Oil & Trading 5% 3% 17% EBITDA PTT - Gas 75% PTTEP Q3/12 Q4/12 Others Net Income 1,202 37% 757 Refining PetChem 25% 10% -8% Net Income 35% PTT EPS (THB/Share) Q3/12 Q4/ PTTEP 38% 38

40 39 PTT Group Performance : Q4/2012 Performance 100% % share Equity Method % PTT Unit : MMUSD Q4/11 Q4/12 YoY Q4/11 Q4/12 YoY PTT Net operating Income % % E&P - PTTEP % 65.29% % Petro. Business % % - PTTGC % 48.89% n.m. - HMC/PPCL/PTTPL/PTTPM/PTTAC / PTTME/PTTTANK % 40-48% % Refining % % Inter Gas & Utilities Oil & Oth. - TOP % 49.10% % - IRPC % 38.51% % - SPRC % 36.00% % - BCP % 27.22% 4 10 n.m. - PTTI group (PTTAPM,EMG,PTTML,FLNG),PTTGE % 100% % -TTM/PTTNGD/IPT/TP/DCAP/CHPP % % n.m. - PTTRB/PTTT/SBECL/THAPPLINE/ /PTTCL/TLBC/ICT/EnCo n.m % n.m. Shared of Net Income from Affiliates % % PTT Conso. Net Income 879 1,189 35% %

41 Statements of Consolidated Cash Flows for Year 2012 & 2011 Unit : MMUSD Operating , ,914 Net Income 3,542 3,489 Changes in assets & liabilities Income Tax -1,402-1,359 Non-Cash Adjustment 3,744 4,539 Interest-net Investing , ,019 CAPEX(PP&E, Intangible asset) -3,748-3,888 Investment (Sub. &Affiliates) -2,566-2,883 Dividend/Interest Received Others Financing -1, Free Cash flow Repayment Loans -1,209-4,081 Interest paid Dividend paid -1,370-1,410 Received from share issue 63 1,247 Received from loans/bonds 1,617 5,843 Adjustment Beginning Cash and Cash Equivalents 4,527 3,871 Cash In/(Out) Ending Cash & Cash Equivalents 3,871 4,

42 Statements of Cash Flows for Year 2012 & 2011 (PTT Only) Unit : MMUSD Operating , ,045 Net Income 2,448 2,490 Changes in assets & liabilities Income Tax Non-Cash Adjustment Interest - net Investing ,239 CAPEX (PP&E, Intangible asset) Investment (Sub. &Affiliates) -1,097-2,053 Dividend/Interest Received 1, Others Financing -2, Free Cash flow 1, Repayment Loans -1,058-1,168 Interest paid Dividend paid -1,093-1,142 Received from share issue 57 0 Received from loans/bonds 268 2,786 Adjustment 1 1 Beginning Cash and Cash Equivalents 2,044 1,711 Cash In/(Out) Ending Cash & Cash Equivalents 1,711 1,

43 Debt Profile : Control Cost & Manage Risk Managed debt according to financial risk and policy Debt Portfolio Unit : MMUSD PTT Only Consolidated : Cost of debts ~ 4.86 % : % fixed-rate ~ 94 % : Avg. debt life ~ 8.84 years : Cost of debts ~ 4.56 % : % fixed-rate ~ 85 % : Avg. debt life ~ 8.11 years USD THB 12,344 13,054 14,557 8,873 8,105 9,606 3,815 5,400 (31%) (41%) 7,184 (49%) 2,277 (26%) 2,411 (30%) 3,336 (35%) 6,596 (74%) 5,694 6,270 (70%) (65%) 8,529 (69%) 7,654 7,373 (59%) (51%) 31 Dec Dec Dec Dec Dec Dec 12 Note : Excluding liabilities from finance leases; Cost of debts includes withholding tax. 42

44 Thailand s projected energy demand Commercial Primary Energy Consumption KBD 4,000 3,500 3,000 2,500 2,000 1,500 1,000 1,841 2% 13% 15% 34% 2,649 2,218 3% Hydro/Import 13% 3% Renewable 12% 16% Coal/Lignite 15% 39% 38% Natural Gas 3,079 4% 14% 16% 38% 3,533 Nuclear 1% 4% 14% 17% 39% % 32% Oil 29% 28% 25% 0 Source : EPPO/ PDP 2010 Revised 3 (June 2012)/ PTT analysis as of 1 Nov

45 Natural Gas : Strong and Increasing Demand over Long Term Natural gas is a fuel of choice for power producers and transportation industry MMscfd 7,000 6,000 5,000 4,000 3,000 2,000 1,000 2,635 8% 14% 78% Gas demand forecast (CAGR during ) : Total ~ 2% : Power ~ 2% : GSP ~ 0% : Industry ~ 3% : NGV ~ 1% 6% 14% 21% 59% NGV Industry GSP Power 6,771 6% 16% 15% 63% Source : PTT 44

46 Data as of 31 Dec 2012 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 % Combined Heat and Power producing Co.,Ltd CHPP % Joint Ventures Proportionate 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% Associates Equity Thai Oil Power Co., Ltd. TP 26.00% Independent Power (Thailand) Co., Ltd. IPT 20.00% PTT Utility Co., Ltd. PTTUT 40.00% B.Grimm BIP Power Co., Ltd. B.Grimm BIP 23.00% Nava Nakorn Electricity Generation NNEG 30.00% Bangpa-in Cogeneration, Ltd BIC 25.00% Others Cost Ratchaburi Power Co., Ltd. RPCL 15.00% 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% Associates Equity Keloil-PTT LPG Sdn. Bhd. KPL 40.00% Vietnam LPG Co., Ltd. VLPG 45.00% Thai Petroleum Pipeline Co., Ltd.THAPPLINE 33.19% PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00% Others Cost PetroAsia (Huizhou) Co., Ltd. PA(Huizhou) 25.00% 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 Tank Terminal Co., Ltd. PTTTANK % Associates Equity PTT Global Chemical Plc. PTTGC 48.89% PTT Phenol Co., Ltd. PPCL 40.00% PTT Maintenance and Engineering PTTME 40.00% Joint Ventures Proportionate HMC Polymers Co., Ltd. HMC 41.44% PTT Asahi Chemical Co., Ltd. PTTAC 48.50% PTT MCC Biochem Co., Ltd. PMBC 50.00% Refining Associates Equity Thai Oil Plc. TOP 49.10% IRPC Plc. IRPC 38.51% 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 International Co., Ltd. PTTI % PTT Green Energy Pte. Ltd PTTGE % Subsidiaries Consolidate Energy Complex Co., Ltd. EnCo 50.00% Business Service Alliance Co., Ltd. BSA * 25.00% Others Associates Equity PTT Energy Solutions Co., Ltd. PTTES 40.00% PTT ICT Solutions Co., Ltd. PTTICT 20.00% Others Fair Value Dhipaya Insurance Plc. TIP 13.33% Remark : * Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies. 45

47 Natural Gas Price Structure : Jan Dec 2012 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 29% : IPP 20% : SPP 10% Average Purchased Gas Price 1.75% 1.75% 9.33% 21.8 Bt/MMBtu GSP 21% 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 Capped at 333 USD/ton Reference to Saudi Aramco s contract price Industry 14% Charged at prices comparable to fuel oil NGV 6% Capped at 10.5 Baht/Kg Contract periods are ~ years or until depletion of gas fields or the expiration of concessions 1 As at Feb,

48 47 Gas Business Generates Stable Returns Highlights Gas transmission pipeline capacity Sole owner and operator of entire gas transmission pipelines in Thailand (3,635 km), a regulated business 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 pricelinked 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 Pailin Benchamas Tantawan Platong Chevron Additional Arthit FPSO Erawan Arthit Bongkot South Bongkot 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

49 Accolades PTT is widely recognized among business communities both international and local 167th in th in th in 2010 DJSI Member th in th in th in 2010 Asian Excellence Recognition Awards 2012/2013 Asia s Best CEO Asia s Best CFO Best Investor Relations Best IR Website/Promotion Best Environmental Responsibility Best Investor Relations Companies Best CSR Corporate Governance Asia Recognition Awards 2012 Best CEO 2012 Best CFO 2012 Best Managed Company 2012 Best Corporate Governance 2012 Best Investor Relations 2012 Best Corporate Social Responsibility 2012 Best Commitment to Strong Dividend Policy 2012 Deal of the Year 2012 Best Investor Relations Issuer 2012 Best Fully-Integrated Oil and Gas Company, Asia Best Sustainable Oil and Gas Company, Asia Platts Top 250 Global Energy Company 6th Overall Performance in Asia/Pacific (8th in 2011) Leadership Excellence Financial Management Excellence The Asset s Platinum Award for All-Round Excellence Investors Choice Award SET Awards 2012 Best Corporate Social Responsibility Awards 6th Annual Best Financial Institution Awards nd Annual Corporate Awards 2012 (Thailand) The Asian Banker Annual Achievement Awards 2012 The Global Green Rankings List 2011 Outstanding State Enterprise Award Best State Enterprise of the Year, Best of the Best