14th CLSA Asean Forum. 10 March 2017

Transcription

1 14th CLSA Asean Forum 10 March 2017

2 1 Contents Overview Performance Outlook

3 Oil Balance Thailand: Jan - Dec 2016 Adequate refining capacity maintains the stability of supply Supply Production Sales Import (78%) 914 KBD Imported Refined Petroleum Products 60 KBD Domestic Crude/ Condensate 854 KBD Total Refining Capacity in Thailand: 1,097 KBD Refined Products 1057 KBD* Crude/ Indigenous (22%) Condensate 259 KBD 228 KBD PTT s Associated Refineries : 635 KBD (TOP, PTTGC, IRPC) Refined Products 170 KBD 923 KBD (**) Export Other Refineries : 462 KBD (ESSO, BCP, SPRC) Crude Export 31 KBD 201 KBD Source: PTIT Remark : (*)Refined product from refineries = 952 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 105 KBD (**) Not included Inventory KBD = Thousand Barrels per day 2

4 Natural Gas Balance: Jan Dec 2016 Main driver of the Thai economy Supply Production Sales Gulf of Thailand (70%) Others, 70% PTTEP, 30% Onshore (3%) 3,351 MMSCFD Bypass Gas 724 MMSCFD 6 GSPs Total Capacity 2,820 Actual Heat 141 MMSCFD Ethane/ Propane/ LPG/NGL 946 MMSCFD (20%) LPG/NGL Petrochemical Feedstock (12%) Industry Household Transportation (8%) Import (27%) Methane 1,681 MMSCFD Power (59%) Industry (15%) Myanmar 68% LNG 32% 1,269 MMSCFD 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 ) Robust revenue and Net Income growth since IPO (MMUSD) 4 Largest company on Thai Stock exchange Market cap ~US$58.9bn 1 or ~ THB 2.1 trillion Group companies: 14.1% 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 695 mmboe of proved reserves in 2016 Sole operator and owner of gas transmission pipelines and GSPs in Thailand Largest refinery group in Thailand with stakes in 3 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 in Thailand with 1,530 retail stations 2 and 41% 2 of market share by sales volume International oil trading business having traded 74.6 bn liters 3 in 2016 Coal business assets in Indonesia and Madagascar Power Flagship (GPSC) to capture opportunity in neighboring ASEAN countries 1 As of 31 Dec 2016 : Avg. BOT selling rate USD/THB of (End rate) 2 As of 31 Dec For the year As of 31 Dec 2016 : Annual Avg. BOT selling rate USD/THB of (Avg. rate) Revenue Net Income 12,553 19% % 81% IPO 57,106 2,667 45% 55% International and local recognition 180 th in th in th in th in 2011 Thailand best borrower award Best CEO Best CFO Best Managed Company Best Corporate Governance Best Investor Relations Best Corporate Social Responsibility Best Commitment to Strong Dividend Policy Platts Top 250 Global Energy Company 24th Overall Global Performance in Asia of 2014 SET Awards Top Corporate Governance Report Award 2010 & 2011 Best Corporate Social Responsibility Awards 2011 & 2012 PTT Affiliate 146 th Fortune Global 500 in rd in th in st in th in 2012 Dow Jones Sustainability Index (DJSI) DJSI Member (Listed in 2011) 4

6 PTT s Strategic Importance to Thailand Ministry of Finance holds majority stake in PTT PTT ratings at Thai sovereign level Public 34% Foreign 15% Thai 19% 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+ BBB+ A Note: As of Sep 2016 Largest market cap on the Thai Stock Exchange PTT PTTEP PTTGC TOP IRPC GPSC Total Others Market cap (BNUSD) % of SET 7.1% 2.5% 1.9% 1.0% 0.7% 0.4% 13.6% 86.4% Moody s rating Baa1 Baa1 Baa2 Baa1 Ba1 N.A. - - S&P rating BBB+ BBB+ BBB BBB BB+ BBB 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 5 2 As of 31 Dec 2016 : Avg. BOT selling rate USD/THB of (End rate) 5

7 Downstream Upstream Intermediate Infrastructure 6 Our Major Businesses & Activities Business Areas Company PTT s holding (%) Activities E&P Coal Gas PTTEP 65.29% Exploration and Production PTT Energy Resources 100% Coal Business 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 Oil Marketing 100% Retail service Stations and commercial Marketing Int l Trading Int l Trading 100% Import/Export/Out-Out trading of petroleum and petrochemical products Petrochemical & Refining PTTGC 48.91% Petrochemical Flagship TOP 49.10% Refinery Flagship IRPC 38.51% Integrated Refinery & Petrochemical Power GPSC 22.58% Power Flagship 6

8 Pride & Treasure of Thailand 7

9 Strategic Thinking Session Make It Happen with Productivity & Innovation PTT market cap Customer-centric Disruptive Technologies S-Curve 2016 PTT Strategies Design now Disruptive Innovation Be ready to jump Energy transformation Domestic resource decline Business Growth Top Quartile Performance Decide now Do now Sustainable Innovation Productivity Improvement Time

10 FY2016 Performance: Improved performance in most PTT Group Businesses MMTHB Others Affi PTTER : Improved coal performance Net Income Others Affi. BCP & SPRC P&R PTTEP PTT Extra Items 19,936 6,898 3,232 18,869 9,785 30,316 (49,164) 17,778 8,534 OPEX* Margin 69,100 Operating Performance 14,602 4,255 Depre & Other Amortiza-Incomtion 65,670 Impair 3,246 24,410 FX & Derivatives Int. & CIT exp.& Other** 99,692 94,609 9,268 28,590 8,607 53,227 (5,083) 34% 29% 12% 76% 90% Petrochem & Refining Aromatics improved from spreads margin and volume increase Stock gains despite soften Market GRM PTTEP Lower ASP from the slump in oil & gas price Improved NI from cost saving & less impairment Gas GSP & Industrial customer margin improved from lower feed cost Increased TM performance NGV loss decreased Decreased sales volume from power customers Oil Vol. increased from demand due to lower retail prices Margin improved from stock gain Trading Margin increased from domestic condensate Vol. decreased from out-out/import * including petroleum exploration expenses and royalties ** including profit from discontinued operation Extra Items Lower Impairment on E&P & mining assets 9

11 Contents Overview Performance Outlook 10

12 E&P : Improved NI by successful cost reduction effort E & P Gas Oil & Trading P&R Others Liquid ($/BBL) Weighted Avg. ($/BOE) Gas ($/MMBTU) Product Prices Q3/16 Q4/ % QoQ 18% YoY 2% QoQ 21% YoY 7% QoQ 22% YoY KBOED Sales Volume 2% QoQ 1% YoY Liquid Gas Q3/16 Q4/ MMUSD Net Income (100%) 110% QoQ (16) (1,572) Recurring NI (139) (94) 119 (854) 144% YoY Non-recurring*** Q3/16 Q4/ *** Includes Deferred tax from Functional currency, Current Tax from FX Revaluation, Gain/loss from Financial instruments, Gain/(loss)on FX, H1 incident Insurance Claim, and etc. Key Highlights QoQ ASP remained low from the declining in gas price Sales volume increased mainly from Zawtika NI dropped from FX loss and impairment of 47 M$ YoY ASP drop significantly from slump in oil & gas prices Sales volume decreased from divestment Oman project NI improved from less impairment and cost saving program 11

13 E&P Strategy: Financial Outlook Avg. Sales Vol. (KBOED) Avg. Gas Price ($/MMBTU) Unit Cost (USD/BOE) EBITDA margin (% of Sale Rev.) Q1 17 FY2017 ~310 ~312 ~5.1 ~5.3 ~31 ~30-31 ~70 *Based on FY2017 Dubai oil price at 49 $/BBL Exploration Portfolio Known area Acceptable risk Quick Commercialization M&A Thailand, SEA, Middle East Focus on producing or near-producing Mozambique Area 1 Contract 4 (Ubon) Growth Opportunities FID Candidates LNG Value Chain Corporation with PTT in LNG opportunities Interest Production Expected Start-up 8.5% 12 MMTPA 2022/23 60% KBPD 2021 Algeria HBR 24.5% 50 KBPD 2023 Path to re-tendering of expiring concessions in the Gulf of Thailand 2017 Legislation of Petroleum Act and associated laws Terms of Reference (TOR) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Petroleum Act & PITA: Under the National Legislative Assembly s review Associated Laws: under drafting by MoE TOR: under drafting by the MoE and approval process by the Cabinet Tendering Process (preliminary expectation) 12 Process: 12 Indicative target for dataroom in August concession award within

14 PTT EBITDA Breakdown by BU s: (Unit:MMTHB) Business Unit Q3/16 Q4/16 QoQ YoY Gas- EBITDA 20,072 20,472 2% 47,832 72,082 51% S&M 3,458 2,277 (34%) 9,286 9,128 (2%) TM 8,154 7,717 (5%) 25,096 32,666 30% GSP 6,454 8,301 29% 15,233 23,134 52% NGV (1,173) (935) 20% (10,175) (3,954) 61% Others 3,179 3,112 (2%) 8,392 11,108 32% Oil- EBITDA 6,413 4,448 (31%) 15,133 23,677 56% Trading*- EBITDA 1, (66%) 4,405 5,677 29% Total** 27,511 25,268 (8%) 67, ,436 51% *MIS ** Included subsidiaries from all BUs 13 13

15 Gas BU: Pooled gas cost continued to fall, though NG volume slightly declined E & P Gas Oil & Trading P&R Others $/MMBTU Fuel Oil* RHS Avg. Pooled gas price * MOPS HSFO 180 CST NG Price VS FO LHS %QoQ %YoY FO 20% 22% Pooled Price 4% 25% $/Ton Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 NGV Price/Sales Volume NG Customer Breakdown MMSCFD 2% QoQ 1% YoY 4,788 4,702 4,828 4, NGV (6%) Industry (15%) 1,000 1, GSP (20%) SPP (18%) 1, IPP (20%) , EGAT (21%) Q3/16 Q4/ Key Highlights THB/KG 1% QoQ 3% YoY NGV Avg. price K.Ton/Day 2% QoQ 9% YoY Q3/16 Q4/ QoQ Pooled gas cost continued to decline, while F/O price surged NG sales volume dropped from seasonal low demand in Q4, despite GSP s higher U-rate (100%) Lower NGV volume, though NGV prices slightly drop, due to demand switching to persistently-low-price gasoline YoY Overall NG sales declined from power customers and NGV NGV volume decreased, as a result of lower demand 14

16 Gas BU: Performance improved from almost segments USD/Ton 1,556 1,569 1, ,449 1, , ,234 1,153 1,103 1,153 1,139 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 * Effective on February 2, 2015 ** Revised feed cost calculation from per sale volume to per GSP production volume MMTHB GSP Feed Cost vs Petchem price 20, , Feed Cost** Gas - EBITDA 2% QoQ 20,472 47,832 8,392 15,233 11,108 23,134 Q3/16 Q4/ Others GSP 3,179 3,112 32,666 TM 25,096 6,454 8,301 8,154 7,717 9,286 9,128 S&M 3,458 2,277 (1,173) (935) (3,954) NGV (10,175) E & P Gas Oil & Trading P&R Others %QoQ 72,082 %YoY HDPE -0.4% -8% LPG Ex-GSP -10% -10% Feed Cost -14% -19% HDPE LPG Ex-GSP* 51% YoY kton 1, GSP Sales Volume 3% QoQ 1,772 6, ,199 2, ,738 2,794 Q3/16 Q4/ Key Highlights 1% YoY 6,455 Pentane (1%) Propane (13%) Ethane (32%) NGL (11%) LPG (43%) QoQ S&M margin decreased from extra expenses in Q4/16 and declining gas price while industrial sales up following rising F/O price GSP margin improved from lowered feed cost with higher U-rate Gas BU s EBITDA raised mainly from GSP, Industrial customers, and NGV YoY Gas price dropped decreased S&M margin, though Industrial customers improved GSP s margin increased from feed cost decline more than selling price TM performance increased from higher TDC volume Subsidies on LPG & NGV removed Gas BU s EBITDA improved in almost all segments, despite S&M 15

17 Gas Business Roadmap E & P Gas Oil & Trading P&R Others NG Country Demand LNG Projects Gas Facilities Expansion New LNG Ph#2 (Early Sent Project Out) LNG Capacity (MTA) Major Project COD 7 LNG Ph# Offshore Comp. 4 th onshore Midline Comp. Nakhon Ratcha sima LNG Terminal#1 - Extension Comp Wang noi th Pipeline LNG Terminal 1 Phase 2 : - Construction completed 99.03% - COD : 2H2017 New LNG projects : 1) LNG Terminal 1 phase 2 Extension : (Capacities expansion from 10 MTA to 11.5 MTA) - Approved by Cabinet 12 Jul Expansion capacity: 1.5 MTA - COD : ) LNG Terminal 2 (Onshore LNG Terminal No.2) - Approved by National Energy Policy Council (NEPC) 8 Dec Capacity: 7.5 MTA - COD : 2022 Additional LNG projects needed for further studies before submitting for CEPA and NEPC to consider Myanmar-Thailand LNG Terminal FSRUs (domestic) Onshore LNG 16 Terminal 3 16

18 Oil BU : Better overall performance mainly from stock gain E & P Gas Oil & Trading P&R Others (Average Prices) USD/BBL Aviation 80.00Gasoline Diesel Dubai Petroleum Prices Gross margin 1 /Sales volume 2 THB/Liter 26% QoQ % YoY MM Liter 0.2% QoQ 25,268 26,464 5% YoY 6,621 6, MMTHB Stock Gain/Loss (MMTHB) Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Oct-16 Nov-16 Dec-16 6,413 5,457 3, QoQ YoY Oil 36% 68% Non-oil 0.1% 16% 11,890 19,920 3,243 3,757 Non-Oil* Q3/16 Q4/ ,382 (4,770) 5,682 * EBITDA from Operating Oil - EBITDA 4,448 15,133 23,677 Oil Q3/16 Q4/ /Excluded Non-oil, stock gain/loss, non-recurring item 2 /PTT only Key Highlights QoQ Lower margin mainly - aviation fuel (pricing structure: Buy M, sell M-1) - diesel intense competition in Q EBITDA decreased mainly from - absence of refund of oil fund in Q lower aviation & diesel margins as abovementioned YoY Sales volume increased mainly from higher demand following lower product prices Lower gross margins mainly from - higher diesel imports during PTTGC T/A in 1H 16 - aviation & diesel margins as abovementioned Higher EBITDA mainly from stock gains & higher sales volumes 17

19 Trading BU: Performance improved from better domestic condensate margin E & P Gas Oil & Trading P&R Others Gross Margin* Sales Volume Gross Margin (THB/Liter) 50% QoQ 33% YoY MM Liter 8% YoY % QoQ 81,367 74, ,463 19,375 Q3/16 Q4/ * PTT only : FX Adjusted MMTHB 29% YoY 5,677 66% QoQ 4,405 1, Q3/16 Q4/ *FX Adjusted Trading - EBITDA* Q3/16 Q4/ Key Highlights QoQ Gross margin and EBITDA declined mainly from lower domestic condensate margin YoY Gross margin improved mainly from higher domestic condensate margin following higher demands Sales volume declined from less - out-out trading volume supplied to Indonesia (policy change) - crude import as PTTGC shutdown in May-June'16 - LPG import from lower demand & increased domestic refinery production - Higher EBITDA from better domestic condensate margins 18

20 19 TRADING BU & PTTT: KEY ACHIEVEMENTS in Q E & P Gas Oil & Trading P&R Others A BIG STEP TOWARDS WESTERN CORRIDOR 1 st Term Supply Petroleum Products to LATAM Awarded 1 year term (2017) tender cargoes of Gasoline & Gasoil to LATAM Total Volume approx. 4,300 KBBL The 1 st Storage Tank in ARA area Period: 2 Year (Jan 17 - Dec 18) Total Capacity : approx. 75,000 MT GROWTH 1st Term Supply of Sulfuric Acid to PTT Asahi Successfully secure 3 - year ( ) term supply Sulfuric Acid for PTT Asahi Total Volume 90,000 MT

21 P&R BU : Improve performance from stock gain and Aromatics margins BTX U-Rate USD/Ton BZ-Cond % 402 PX-Cond Aromatics 82% QoQ 11% 14% % 3% % Q3/16 Q4/16 Y2015 Y2016 Aromatics 17% MKT P2F E & P Gas Oil & Trading P&R Others YoY 82% 15% Olefins U-Rate 93% USD/Ton 1,139 1,134 1,090 1,085 HDPE Price PP Price Olefins QoQ 100% 94% 0.4% 0.5% 1,238 1,155 90% 8% 1,132 Q3/16 Q4/16 Y2015 Y2016 YoY 9% 1,046 Dubai USD/BBL 3.62 Mkt GRM A/C GIM* A/C GRM* GRM/GIM QoQ Q3/16 Q4/ Stock Gain/Loss *A/C GRM and A/C GIM include effect from hedging gain/(loss) YoY A/C GIM 45% A/C GIM 19% Unit : MMTHB Net Income (100%) QoQ 12% 62,065 55, ,281 1,933 BCP 8,356 SPRC 4,592 25,602 HMC 44% 20,503 PTTGC 18,240 12,670 9, ,072 IRPC 9,402 1,557 9,745 21,222 6,225 1,694 TOP 12,181 1,307 5,802 2,941 (73) 20 Others (1,646) Q3/16 Q4/16 Y2015 Y2016 YoY 20

22 21 P&R : Key Achievement and project update E & P Gas Oil & Trading P&R Others Linear Alkyl Benzene (LAB) Successfully COD on 25 Feb 2016 Orchestra Cost Management TOP SPP (2blocks of SPP) Successfully COD 1 st block on 1 April 16 Transcendence Process Improvement Successfully COD 2 nd block on 1 June 16 Sustain Core Accelerate Growth Levers Balance Business & Social Value Project MTP retrofit Project MAX Project Asset Injection International hub Performance chemicals Green business Sustainable development UHV project RDCC COD in Q2/2016 Propylene +320 KTA Everest Project Incremental Margin Organization Health Fully integrated PP Expected COD: 2017 PP Expansion +160KTA PP compounding +140KTA

23 Other Businesses : Coal - SAR Better performance from lower impairment, depreciation and cost, despite lower coal price E & P Gas Oil & Trading P&R Others New Castle Avg. Selling Price Total Cash Costs Avg. Selling Price* & Cash cost* USD/Ton Q3/16 Q4/ *Calorific value ~ 5,500 kcal/ton MMUSD Net income 14% QoQ QoQ 42% 15% 6% % YoY NI 7 6 (179) 15 Operating NI 0 Impairment 20 (5) (30) (5) (149) Q3/16 Q4/ YoY 12% 13% 20% kton 2,424 2, ,040 2,233 Sales Volume 14% QoQ 7,265 1,848 5,417 Key Highlights 1,942 7,872 Q3/16 Q4/ % YoY 9,814 Sebuku Jembayan QoQ Selling price increased following the rise in market coal price as a result of China coal capacity control Sales volume increased mainly from improve marketing strategy Performance improved mainly from the price increase YoY Cash cost from productivity improvement program, including successful negotiation with mining contractor Sales vol. increased following the increase in coal production, improved marketing strategy and improved market condition Performance improved mainly from - successfully implementing productivity improvement program - decreasing in extraordinary items i.e. impairment - improving coal market condition 22

24 Other Businesses : Power - GPSC Outstanding performance supported by dividend income from its affiliates E & P Gas Oil & Trading P&R Others Sales Volume Net Income (100%) GWh 000 Ton QoQ YoY 20% MMBaht 2,700 42% YoY Steam 2% 3% Power 1,492 1, ,754 4,802 13% 2,099 2, % QoQ 419 1,906 Q3/16 Q4/ Q3/16 Q4/ Committed Capacity Key Highlights Cogen : SPP 31.1% Renewable 2.7% Operating 1,381 MW Combined heat : VSPP 0.4% Combine Cycle : IPP 65.9% Cogen: SPP 32% Renewable 4% Under construction 541 MW Present 2019 Hydro Electricity 64% QoQ Lower electricity sales vol. from both IPP & SPP due to lower vol. dispatched to EGAT and industrial customers. Lower NI mainly due to an impairment of fixed assets of SPP for 100 MB and no dividend income from RPCL in Q4 16. YoY Higher sales vol. due to increase in demand of electricity & steam from industrial customers also, COD of IRPC-CP in Q4/15. Higher NI due higher sales of SPP, more efficient production cost management and full operating year of IRPC-CP Phase 1 and COD of NNEG in Jun

25 Other Businesses : Power GPSC E & P Gas Oil & Trading P&R Others Project Highlight: 4 Projects to COD in 2017 Project Type Capacity SCOD Construction Progress as of Q4/16 CHPP Solar Cooperatives (VSPP) Solar Electricity: 5 MW Successfully COD in Dec 16 Bangpa-In Cogeneration Company Limited (BIC) Phase 2 (SPP) Gas-Fired Power Plant Electricity: 117 MW Steam: 20 T/h Jun 17 84% IRPC-CP phase 2 (SPP) Gas-Fired Power Plant Electricity: 240 MW Steam: T/H Q % Ichinoseki Solar Power 1GK (ISP1) Solar Electricity: 20.8 MW Q % 24

26 PTT Consolidated Performance: FY2016 Avg. Dubai (USD/BBL) % QoQ % YoY FY15 FY16 Unit : MMTHB Revenue EBITDA Net Income/ Operating Performance 26,974 26, ,172 10% QoQ 476,857 2,025,552 69,100 24,544 19,087 19,936 1,718,846 Q3/16 Q4/ * % QoQ 75,701 83, , ,526 Q3/16 Q4/ * 2016 QoQ 29% 7% 94,609 15% YoY Q3/16 Q4/ * 2016 * Restated **Included gain on BCP divestment and IRPC reverse allowance for doubtful debt 9% YoY YoY >100% 44% 99,692 1% 6% 28% 18% Revenue 47% 1% 30% EBITDA 46% 6% 17% -57% -104 Net 119% Income 142% P&R P&R 33% 8% PTT - Oil & Trading P&R Others PTTEP 1% 6% PTT - Gas 30% 17% Others 31% Revenue 46% Others 2% EBITDA 23% 5% 9% Net Income PTT - Oil & Trading 34% PTT - Gas PTTEP 55% PTTEP PTT 25

27 Statement of Financial Position MMTHB 3% 1,805,041 1,818,746 2,173,996 2,232,331 Assets/Liabilities slightly increased : Increase in Cash and S/T investment mainly from effective cost saving program within PTT group Increase in inventory from higher avg. product prices Cash & S/T Invest Other Current Assets Others Noncurrent Assets 346, , , , , , , , , ,323 Other Liabilities L/T Liabilities (incl. due within 1 yr) Net Debt/EBITDA Net Debt/Equity (0.1) YE15 YE PPE 1,118,677 1,087,687 1,171,597 1,098,230 Total Equity PTT Ratings at Sovereign Level FC : Moody s (Baa1), S&P (BBB+), JCR (A-), FITCH (BBB+) 1 31 Dec Dec Sep LC : Moody s (Baa1), S&P (BBB+), JCR (A), FITCH (BBB+) 26

28 PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 339bn ($8bn) during By Strategy By Business Unit Value-added 44% Green, 1% Energy Infrastructure 55% JV & Investment in Subsidiaries 40% Capital Restructuring, 22% LNG, 14% Others, 1% Infrastructure, 43% Other Sub. & JV, 4% PTT 5-Years CAPEX Plan Bt 339 bn Oil & Trading, 12% Gas, 4% Infrastructure Investment in JV and its subs Head Office and Others Oil and International Trading Natural Gas 102,282 83,661 36,874 20,647 60,486 58,093 34,327 47,265 51,975 35,970 9,935 14,313 13, ,376 9, ,265 7,785 4,556 6,736 3,887 2,382 2,066 2, ,882 7,551 Unit: MMTHB 5 th pipeline & extension JV & Investment in 100% owned subsidiaries * budget approved by BOD on 16 Dec 16 27

29 Dividend Policy & Historical Payments PTT is firmly committed to pay dividend at no less than 25% of net income 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% 54.1% 148.6% Dividend payout 35.8% 25% PTT s minimum payout ratio 25% Baht / share EPS DPS H/

30 29 Contents Overview Performance Outlook

31 30 Summary: Outlook 2017 Business (Forecast) Gas Price ($/mmbtu) - Henry Hub - JKM Oil Price ($/bbl) Dubai Price 41 Refinery Margin ($/bbl) Singapore GRM Petrochemical ($/ton) - Olefins (HDPE, PP) 6.12 HDPE-Naphtha =734 PP Naphtha = 627 Range Range Range HDPE-Naphtha = PP Naphtha = Reason Increase in US LNG export capacity & domestic consumption (coal-to-gas switching) Higher Oil Price & Strong LNG demand from Southeast & South Asia. OPEC and Russia s attempts to comply with an output-cut agreement A price-response of U.S. shale oil producers in ramping up output Gasoline: Higher regional refineries T/A (most postponed from last year) lower supply FO: lower arbitrage from the West & Russia (as most refineries will upgrade FO into lighter components) - higher bunker demands Olefin New PE capacity from US & Saudi New PP capacity from China (PP) High naphtha price squeezed - Aromatics (PX, BZ) PX-Naphtha = 396 BZ-Naphtha = 242 PX-Naphtha = BZ-Naphtha = Aromatics PX New capacity from India & Saudi BZ healthy downstream derivative demand (SM, MEG).

32 31 Thank you PTT Public Company Limited Investor Relations Department Tel , Fax , ptt-ir@pttplc.com Website: Disclaimer The information contained in our presentation is intended solely for your personal reference only. Please do not circulate this material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any action in reliance upon it. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events, financial performance and result of PTT s activities. 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. The information contained in this presentation is subject to change without notice and PTT 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. 31

33 Debt Profile : Control Cost & Manage Risk Managed debt according to financial risk and policy Debt Portfolio Unit : MMTHB PTT Only : Cost of debts ~ 4.72% : % fixed-rate ~ 69% : Avg. debt life ~ 8.64 years Consolidated : Cost of debts ~ 4.5% : % fixed-rate ~ 68% : Avg. debt life ~ 7.28 years USD&Other THB 689, , , ,127 (44%) 256,588 (41%) 250,968 (44%) 288,545 83,985 (29%) 265,245 81, , ,091 (71%) (31%) (69%) 228,837 81,245 (36%) 147,592 (64%) 384, ,733 (56%) (59%) 325,524 (56%) 31 Dec Dec Dec Dec Dec Dec Note : Data as of 31 Dec 16 (THB/USD = THB/JPY = ) Excluding liabilities from finance leases; Cost of debts includes withholding tax. Cost of debts, % fixed rate, and avg. debt life took into account the derivative transactions. Debt outstanding is reconciled with accounting. 32

34 Statements of Consolidated Cash Flows : Y2016 Operating Y ,338 Y ,435 Net Income 19,936 94,609 Changes in assets & liabilities 34,706 (13,147) Income Tax (42,137) (30,609) Non-Cash Adjustment 280, ,582 Investing Y2015 (133,043) Y2016 (178,915) CAPEX (PP&E, Intangible asset) (162,487) (109,199) Investment (Sub. &Affiliates) 30,893 (7,136) Current investment (24,202) (68,185) Dividend/Interest Received 17,498 10,580 Others 5,255 (4,975) Free Cash flow 160,295 91,520 Financing (163,813) (116,203) Repayment Loans (135,646) (70,943) Interest paid (35,303) (32,618) Dividend paid (43,811) (44,590) Received from share issue 10, Received from loans/bonds 42,843 26,684 Others (2,104) 5,162 Adjustment 9, Beginning Cash and Cash Equivalents 234, ,978 Cash In/(Out) 5,766 (24,412) Ending Cash & Cash Equivalents Ending cash incl. S/T investment 239, , , ,380 33

35 Statements of Cash Flows (PTT Only) : Y2016 Operating Y2015 Y ,812 97,063 Net Income 9,555 70,808 Changes in assets & liabilities 27,819 15,688 Income Tax (5,036) (5,388) Non-Cash Adjustment 49,474 15,955 Investing Y2015 Y2016 4,971 (21,848) CAPEX (PP&E, Intangible asset) (35,398) (23,807) Investment (Sub. &Affiliates) 25,064 (550) Current investment (15,058) (24,558) Dividend/Interest Received 27,939 27,513 Others 2,424 (446) Free Cash Flow 86,783 75,214 Adjustment (4) (306) Financing (77,272) (79,785) Repayment Loans (35,157) (37,045) Interest paid (13,765) (14,432) Dividend paid (31,402) (28,561) Received from share issue Received from loans/bonds - - 3, Others - - Beginning Cash and Cash Equivalents 58,018 67,524 Cash In/(Out) 9,507 (4,876) Ending Cash & Cash Equivalents Ending cash incl. S/T investment 67,525 62, , ,841 34

36 PTT Group Performance : 2016 (YoY) Unit : MMTHB Performance 100% % PTT holding Equity Method % PTT Y2015* Y2016 YoY Y2015* Y2016 YoY PTT Net operating Income 28,285 52,307 85% 28,285 52,307 85% E&P - PTTEP -31,590 12, % 65.3% -20,618 8, % Petrochemical 23,449 31,122 33% 10,879 14,870 37% - PTTGC 20,503 25,602 25% 49.3% 9,710 12,443 28% - HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 2,946 5,520 87% 1,169 2, % Refining 31,872 30,943-3% 12,764 14,022 10% Refining (Excluded SPRC & BCP) 21,583 30,943 43% 9,532 14,022 47% - TOP 12,181 21,222 74% 49.1% 6,123 10,162 66% - IRPC 9,402 9,721 3% 38.5% 3,409 3,860 13% - SPRC 8,356 - N/A 5.41%* 2,679 - N/A - BCP 1,933 - N/A 0%** N/A Others Business -7,437 10, % -11,375 5, % Inter - PTTER, PTTGE -22,433-4,969 78% 100% -22,729-4,986 78% Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 6,073 6,042-1% 5,146 5,236 2% Utilities -GPSC/ TP/ DCAP 3,175 4,361 37% 878 1,070 22% Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 5,748 5,057-12% 5,331 3,699-31% Shared of Net Income from Affiliates 16,294 85, % -8,349 42, % PTT Conso. Net Income 44, , % 19,936 94, % 35 *SPRC before disposed = 36%, **BCP divested in April

37 PTT Group Performance : Q4/2016 (QoQ) Unit : MMTHB Performance 100% % PTT holding Equity Method % PTT Q3/16 Q4/16 QoQ Q3/16 Q4/16 QoQ PTT Net operating Income 14,985 12,240-18% 14,985 12,240-18% E&P - PTTEP 5, % 65.3% 3, % Petrochemical 8,422 10,744 28% 4,030 5,206 29% - PTTGC 6,225 9,745 57% 49.3% 3,074 4,674 52% - HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 2, % % Refining 4,248 7,496 76% 2,092 3,421 64% Refining (Excluded SPRC & BCP) 4,248 7,496 76% 2,092 3,421 64% - TOP 2,941 5,802 97% 49.1% 1,537 2,793 82% - IRPC 1,307 1,694 30% 38.5% % Others Business 3, % 2,309-1, % Inter - PTTER, PTTGE , % 100% , % Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 1,601 1,798 12% 1,277 1,587 24% Utilities -GPSC/ TP/ DCAP 1, % % Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 1,217 1,490 22% 867 1,148 32% Shared of Net Income from Affiliates 21,949 17,366-21% 11,989 6,847-43% PTT Conso. Net Income 36,934 29,606-20% 26,974 19,087-29% *SPRC before disposed = 36%, **BCP divested in April

38 Data as of 31 Dec 2016 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 22.58% 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 % PTT Oil & Retail Business Co., Ltd. PTTOR % 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**50.00% PTT PMMA Co., Ltd. PTTPMMA % PTT Global Chemical Plc.* PTTGC 49.42% 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% Others Fair Value Star Petroleum Refining Co., Ltd. SPRC 5.41% International Trading Business Group International Investment Subsidiaries Consolidate PTT International Trading Pte. PTTT % PTT International Trading London Ltd PTTTLDN % Subsidiaries Consolidate Energy Complex Co., Ltd. EnCo 50.00% Business Service Alliance Co., Ltd. BSA * % PTT Regional Treasury Center Pte. Ltd. PTTRTC % PTT ICT Solutions Co., Ltd.* PTTICT 20.00% Remark : Others Subsidiaries Consolidate PTT Energy Resources Co., Ltd. PTTER % PTT Green Energy Pte. Ltd PTTGE % Others Fair Value Dhipaya Insurance Plc. TIP 13.33% *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. 37

39 Natural Gas Price Structure : Jan-Dec 2016 Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns. Customers Sales Price Structure Gas Pool Price + Supply Margins + Pipeline Tariffs Power Producers 59% : EGAT 21% : IPP 20% Average Purchased Gas Price 1.75% * 1.75% * 9.33% * 21.9 Bt/MMBtu : SPP 18% * EGAT IPP and SPP Supply Margins not more than and respectively GSP 20% Charged at the same price structure of power producers Petrochemicals Feedstocks Ethane, Propane, LPG NGL Local Cooking Gas Export Cooking Gas Industry 15% 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 Charged at prices comparable to fuel oil NGV 6% 21 Jan -15 Jul 2016: Capped at Baht/Kg. If cost is less than Baht/Kg, retail price will be set to reflect the cost. Since 16 Jul 2016 : The retail price is set to reflect the cost. NGV retail Price as of 31 Dec,16 = Baht/Kg. 38 Contract periods are ~ years or until depletion of gas fields or the expiration of concessions 38

40 39 Natural Gas : Growth of natural gas upon Government fuel diversification policy for power generation Thailand Gas demand forecast : Total ~ 1% : Power ~ 2% : GSP ~ -3% : Industry ~ 1% : NGV ~ -5% MMscfd PTT Gas demand forecast (CAGR during ) : Total ~ -1% : Power ~ -1% : GSP ~ -3% : Industry ~ 1% : NGV ~ -5% Thailand Gas Demand Replace : coal (3,340 MW), AE and EE 30% 5,770 Business Plan 2,635 8% 5% 14% 21% NGV Industry GSP 4,345 3% 19% 15% 14% 78% 60% 63% Power

41 Thailand s Projected Energy Demand Primary Energy Consumption 4,500 KBD 3,853 4,000 3,500 3,000 2,500 2,000 1,500 2,714 2% 9% 11% 46% 2,812 2% 10% 11% 44% 2.9% 4.6% 3.6% 0.3% Hydro/Import Renewable Coal/Lignite Natural Gas 3% 18% 16% 34% 1, % 33% 0.7% Oil 28% 0 Sources : Ministry of Energy (Thailand Energy Outlook 2016) 40

42 41 Gas Business Generates Stable Returns Overview Gas transmission pipeline capacity Sole owner and operator of entire gas transmission pipelines in Thailand (~ 4,000 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

43 Group Productivity Improvement 2016 ~ Baht Bn Program Procurement Synergy GSP Debottleneck GTM Strategic Sourcing Management cost cost cost -300 MB -547 MB -637 MB SAVE to be SAFE & SPEND SMART cost -250 to -300 MMUSD Project MAX cost -246 MB Orchestra Transcendence cost -527 MB margin +257 MB Everest EBIT +2,311 MB Productivity Improvement Program cost -50 MMUSD (~20%) 42 42