Thai Oil Public Co. Ltd. · SET:TOP
Thai Oil Public — Investor Presentation (October 2021)
85 slides from Thai Oil Public's investor presentation, October 2021
Slide 1: Presentation to Investors October 2021
Thai Oil Public Company Limited Presentation to Investors October 2021
Slide 2: Disclaimer
-2- Disclaimer The information contained in this presentation is intended solely for your personal reference. 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. Some statements mad
Slide 3: Presentation Agenda
-3- Presentation Agenda TOP GROUP BUSINESS OVERVIEW KEY FINANCIAL HIGHLIGHTS STRATEGIC INVESTMENT PLANS OLEFINS INVESTMENT OUTLOOK FINAL REMARKS
Slide 4: Strategic Relationship and Operational Integration with PTT
-4- -4- Strategic Relationship and Operational Integration with PTT Thai Oil’s strong shareholder base • Benefits from PTT’s dual role as our major shareholder 8.12% and key business partner • All transactions take place at arm’s length and in 29.27% * 48.03% adherence with strong corporate governan
Slide 5: TOP Group Synergy & Strategic Role in PTT Group Value Chain
5- --5- TOP Group Synergy & Strategic Role in PTT Group Value Chain Upstream Intermediate Downstream Solvent Pentane Hexane Toluene Diversifying to a broad SOLVENTS Mixed-Xylene range of downstream products to enjoy higher Paraxylene The majority of Mixed-Xylene refined petroleum profit margins and
Slide 6: Key Milestones: 60 Years, A Long Track Record of Success
6- --6- Key Milestones: 60 Years, A Long Track Record of Success 1961 – 1997 2004 – 2011 Today Capacity expansion and initial stage of business Listing, expansion and A leading integrated refining and diversification diversification petrochemical group in Asia Pacific 1961 1970 2004 • 275 kbd refine
Slide 7: Thai Oil Group Business Structure
7- Thai Oil Group Business Structure --7- 100.0% 100.0% 100.0% 100.0% 100.0% Thai Paraxylene Thai Lube Base Thaioil Ethanol Thaioil Treasury Center Thaioil (TOP) TOP SPP (TPX) (TLB) (TET) (TTC) Capacity : Aromatics Capacity: Lube Base Oil Sells Electricity/Steam to 50.0% Enhance financial efficiency
Slide 8: Process Linkage: Beauty of Integration
8- --8- Process Linkage: Beauty of Integration PROCESS FLOWCHART Thai Paraxylene ADIP FUEL GAS Thai Oil ISOM LPG 20,000 MX HDT-1 MX 40,000 HDT-2 HDT-3 CCR-1 CCR-2 ULG95 85,000 CCR CDU-1 50,000 ULG91 45,000 KMT-1 CDU-2 KMT-2 JET 50,000 CDU-3 180,00 KEROSENE 0 HVU-1 HVU-2 FCCU 10,40 HDS-2 HVU-3 HVU-3
Slide 9: One of Region's Leading Refineries
-9- - 9- One of Region’s Leading Refineries Total Thailand crude refining capacity 1,244.5 kbd (1) Market shares for refined petroleum product (3) Fang (2.5 kbpd) Thai Oil 22% Share Nameplate Capacity 29% 30% market market Thai Oil (275 kbpd) shares shares PTT’s Principal Refiner BCP (120 kbpd) Esso
Slide 10: Strategic Location with Competitive Advantages in Access to Key Markets
10- --10- Strategic Location with Competitive Advantages in Access to Key Markets Access to Indochina markets through deep Close proximity to the key domestic markets water ports and trucks Our strategic location provide us with 1. Close proximity with the key LAOS domestic markets and Indochina Ban
Slide 11: Competitive Performance Benchmarking (Yr 2016 vs 2018)
-11- Competitive Performance Benchmarking (Yr 2016 vs 2018) Solomon for GOC 3(1) Category 2018 : TOP 2016 : TOP Total Operating Expenses, US cents/UEDC Solomon Associates is the independent 3rd Mechanical Maintenance Availability, % Index, US $/EDC party who applies Comparative Performance Analysis
Slide 12: Optimized & Flexible Operations…Superior Performance
Crude & Production -12- Optimized & Flexible Operations…Superior Performance Thai Oil is able to diversify its type of crude intake and product outputs to maximize demand and margin Crude Assays based on Sources of Product Reference Domestic demand for TOP configuration* Crude output Price petroleum
Slide 13: Refinery: Slightly Lower Utilization as Softening Domestic Oil Demand
-13- Refinery: Slightly Lower Utilization as Softening Domestic Oil Demand TOP/ Domestic Refinery Utilization Rate Domestic Oil Demand Unit: % Utilization Rate Jun’21 Mogas Jet/Kero Gasoil Total (yoy) -8.0% +60.5% -4.4% -3.8% 150% 111% 113% 107% KBD 98% 101% 100% 98% 101% 6M'20 6M'21 93% 800 100% -5
Slide 14: Key Financial Highlights
-14- KEY FINANCIAL HIGHLIGHTS
Slide 15: Q2/21 Recovery On The Way
-15- Q2/21 Recovery On The Way COVID-19 Pandemic Recovery Global Oil Demand Recovery Strong Downstream Markets Vaccination rate • Rising crude prices amid demand • Improving Aromatic & LAB Markets Share of people vaccinated against COVID-19 (Aug 13, 2021) recovery and tightening supply $/ton Fully B
Slide 16: Continuous Business Excellence
-16- -16- Continuous Business Excellence Operational Commercial Financial • Optimize overall utilization rates • Maximize domestic & Indochina sales • Affirmed Credit Rating • In line with TOP's strategic direction U-Rate % Q1/21 Q2/21 1H/20 1H/21 Q1/21 Q2/21 1H/20 1H/21 • Clear recapitalization pla
Slide 17: Q2 & 1H/21 Performance
-17- -17- Q2 & 1H/21 Performance QoQ Dubai rose from $64.4/bbl to $71.6/bbl TOP Group Net Profit YoY Dubai rose from $40.8/bbl $71.6/bbl Crude • Oil demand recovery due to increasing global vaccination rate & Q1/21 Q2/21 Unit :Million THB (MB) 1H/20 1H/21 easing COVID-19 restrictions in developed ec
Slide 18: Integrated Margin & Competitive Cash Cost
-18- -18- Integrated Margin & Competitive Cash Cost Gross Refining Margin Refinery’s Cash Cost (Unit: US$/bbl) (Unit: US$/bbl) Market GRM Accounting GRM (Market GRM + Stock G/L) Interest Expense (net) Operating Cost (excl. one-time non-operating item) 7.8 6.8 7.6 6.9 6.7 6.1 5.9 5.2 5.3 4.74.3 2.3 2
Slide 19: Financial Performance
--19- 19- Financial Performance Sales Revenue EBITDA Unit: Million THB Unit: Million THB EBITDA (excl stk G/L) EBITDA (incl stk G/L) 389,344 36,925 362,179 32,675 33,448 337,388 274,739 25,496 242,840 22,867 20,239 15,275 13,214 13,833 8,272 78,120 7,003 6,836 73,449 73,449 5,344 3,616 3,220 (2,055)
Slide 20: Q2/21 TOP Group Strong Financial Position & Financial Ratios
-20- -20- Q2/21 TOP Group Strong Financial Position & Financial Ratios Statements of Financial Position Consolidated Long-Term Debt as at 30 Jun 21 (Unit: million THB) 306,188 320,316 Total IBD Net Debt Trade Payable 145,463 million THB 105,566 million THB Cash & ST 39,897 56,289 41,168 / Others inv
Slide 21: TOP Group Strategic Investment Plan
-21- -21- TOP Group Strategic Investment Plan CAPEX Plan (Unit US$ million) Updated as of July 2021 Estimated Budgeting for Actual Investment Plan Project 1H/21 2021 - 2024 CFP project * 579 1,902 Total Ongoing CAPEX 22 201 Reliability, Efficiency and Flexibility Improvement 3 48 Infrastructure Impr
Slide 22: Dividend Payment
-22- Dividend Payment Dividend Policy : Not less than 25% of consolidated net profit after deducting reserves, subject to cash flow and investment plan Unit : THB/share EPSR 2H dividend 1H dividend Year Dividend 12.18 10.40 9.19 9.40 8.66 7.82 7.28 5.91 6.04 5.97 4.57 4.97 4.39 2.75 3.00 3.75 3.08 2
Slide 23: Strategic Investment Plans
-23- STRATEGIC INVESTMENT PLANS
Slide 24: Thaioil's 2021 Strategic Direction: Building on Our Strong Foundation
-24- -24- Thaioil’s 2021 Strategic Direction : Building on Our Strong Foundation Vision Empowering Human Life through Sustainable Energy and Chemicals To be a competitive Energy & Chemicals company that Strategic Objective delivers sustainable returns & better quality of life to all stakeholders Mea
Slide 25: 3-Pronged Strategy (3V)
-25- -25- 3-Pronged Strategy (3V) Value Maximization : Value Enhancement : Value Diversification Integrated Crude to Chemicals Integrated Value Chain Management “Know your customers & “Stable Earnings & New S-Curve” “Build on our strong foundation” knowledge-based” • Strengthen core through CFP proj
Slide 26: CFP Rationale & Timeline
-26- CFP Rationale & Timeline Project Rationale • Risk of losing competitiveness to others regional refineries as more new refineries with higher capacity and more advanced technologies are on stream. • Adjust product portfolio by producing high demand and clean product to serve customer needs and c
Slide 27: Scope of CFP & Technical Aspect
-27- Scope of CFP & Technical Aspect LPG Tops ISOM SRU Sulfur 5 HDT-3 Naphtha PX/BZ CCR-1/2 Platformate TPX HDT-4 Hy. Naph CDU-3 4 180 kbd Crude LPG LPG Kerosene Tops KMT-1/2 Lt.Naph 400 kbd Isomerate Gasoline New HDS-2/3 CDU-4 Diesel Jet/Kero 220 kbd HDS-4 Diesel 4 HMU-1/2&PSA-1/3 2 Fuel Oil HCU-1/
Slide 28: CFP Competitiveness
-28- CFP Competitiveness Without CFP With CFP CDU Capacity CDU Capacity 275,000 bbl per day 400,000 bbl per day Upgrading Ratio 28 % Upgrading Ratio 50% (upgrading capacity(1) over CDU capacity) (upgrading capacity(2) over CDU capacity) Power Plant 250 MW Remark : (1) including HCU 1/2, FCCU, TCU (2
Slide 29: CFP Value Proposition
-29- CFP Value Proposition Flexibility of crude intake Product Upgrading Light Distillate 25% (LPG, Light naphtha, Heavy naphtha, Light Crude Gasoline) 40% - 50% (API > 31) 23% 5% - 15% Medium Crude Middle Distillate (25 < API < 31) 62% (Jet , Gasoil) 100% 53% 40% - 50% Heavy Crude (API < 25) 17% Ot
Slide 30: Clean Fuel Project (CFP)
30- --30- Clan Fuel Project (CFP) Overall CFP Progress 1H/21 Progress • Continuing equipment and module arrival to Thailand • Massive progress of heavy lifting work for critical equipment and module installation 72% 56% • Completed main substation structure construction for energization by 2022 • Ma
Slide 31: Olefins Investment
31- --31- OLEFINS INVESTMENT
Slide 32: Achieving TOP's Strategic Objectives: Integrated Crude to Chemicals
-32- Achieving TOP’s Strategic Objectives: Integrated Crude to Chemicals TOP’s Strategic Direction Strategic Objectives Achieved A jumpstart into Olefins value chain Value Maximization Minimum investment in existing facilities & growth plan Further extend Hydro-Carbon value chain to Olefins PetChem,
Slide 33: Attractive Indonesian Growth Fundamentals
-33- Attractive Indonesian Growth Fundamentals Thailand (CAGR 2.5%) Indonesia (CAGR 4.8%) (2,982) (2,650) (2,646) (2,341) 1,819 2,369 1,521 1,850 5,864 5,751 5,998 6,042 5,783 4,827 3,701 3,674 4,132 3,804 3,101 3,512 3,352 3,666 3,619 3,307 2,742 3,933 2,897 2,318 Thailand 2,023 2,005 1,788 1,752 1
Slide 34: CAP is Indonesia's Premier Petrochemical Producer
-34- CAP is Indonesia’s Premier Petrochemical Producer 1. Market Leading Position 2. Operational Excellence 3. Strong Sponsorship 29 Years In petrochemical industry 2020 PP 32% Only integrated Naphtha cracker in Indonesian Indonesia Petrochemical PE 30% Market Olefins 50% Superior profitability rela
Slide 35: Continuous Expansions and Debottlenecking with High Profitability
-35- Continuous Expansions and Debottlenecking with High Profitability Expansions and debottlenecking executed successfully Revenue and profit are on upward trend. Unit: ’000 tons Unit: US$ mm Cracker New PE Merger with SSBR Expansion TPI and BD Plant Cracker operation, and PP MTBE and Yearly EBITDA
Slide 36: CAP2 Expansion is a Transformative Project for CAP
-36- CAP2 Expansion is a Transformative Project for CAP CAP2 Project Overview CAP2 Will Double The Capacity of CAP Approx. USD 5 bn new plant to double CAP’s Petrochemical Unit ’000 tons Capacity Flexible Feedstock Configuration Total Capacity +91% From CAP2 8,090 Synergy with Existing Plant • 93% o
Slide 37: Win-Win-Win Partnership
-37- Win-Win-Win Partnership TOP Key Value Adds CAP Key Value Adds SCG Chemicals Key Value Adds • Long-term feedstock supply security • Leading operator of petrochemical • CAP’s long-term partner complex in Indonesia • Expertise in margin improvement program • Long track record and expertise in and
Slide 38: Details of Investment
-38- Details of Investment Use of Proceeds All primary proceeds to CAP will be used for the development and 100% construction of CAP2 Project TOP Investment Barito Pacific SCG Chemicals Free float Indonesia Group Condition Precedents 15.38% 44.58% to 46.29% 30.57% 7.76% to 9.47% All necessary appr
Slide 39: Summary of Investment Price
-39- Summary of Investment Price LTM CAP Share Price (USD) 0.90 0.80 0.70 Market Price of CAP 0.60 0.50 Blended Price Per Share (with FID): 0.40 US$0.3532 per share US$0.3532 or total investment size of US$1,183mm by TOP 0.30 US$0.2815 per share Price per Share for 1st Tranche: US$0.2815 or investme
Slide 40: Investment Mechanics
-40- Investment Mechanics Illustration of Investment 1st Tranche Mechanics Barito Group = 59.96% 2 1• CAP carries out rights issue(1) by issuing 3.79 billion 5 3 4 new shares to existing shareholders (17.5% of Prajogo SCG outstanding shares after rights issue) at US$0.2815 Barito Marigold Free float
Slide 41: Key Partnership Arrangements
-41- Key Partnership Arrangements LPG, Naphtha Feedstock Commercial Products • PT. Tirta Surya Raya (TSR), Est. 2019 Polymer Products: • TOP’s solvent and chemical distributor PE, PP company in indonesia • TOP holds 67% in TSR through TOP Solvent Liquid Products: Thailand Benzene, Toluene, Xylene, e
Slide 42: Investment Attractiveness
-42- Investment Attractiveness 1 2 Rare & Attractive Investment Opportunity to Jump-start CFP Products Value TOP’s Olefins Value Chain Upgrade • Strategic fit with TOP’s Value • Reliable outlet for TOP’s products as Maximization feedstock for CAP • Rare opportunity creating global scale • Extension
Slide 43: Funding Plan for the Transaction
-43- Funding Plan for the Transaction Uses of Fund Sources of Fund Additional Facility • Strong Support from PTT 15.38% to support TOP long term competitiveness Bridging Loans Recapitalization stake in CAP • Shareholder loan • Extended Trade Credit (ETC) Bank Extended USD Equity Trade Credit 1.183 b
Slide 44: Long-Term Recapitalization Plan and Short-term Liquidity Support
-44- Long-Term Recapitalization Plan and Short-term Liquidity Support Objectives Recapitalization Short-term Liquidity Support Return Optimal Capital Structure With Net D/E ~ 1.0x (1) Sale of up to Maintain Investment Grade 10.8% GPSC Shares(3) Credit Rating in Short-term 90-Day Extended and Credit
Slide 45: Expected Financial Benefits From the Transaction
-45- Expected Financial Benefits From the Transaction Share of Profit from CAP to Enhance TOP’s Performance Annual Net Income from 2016 to 2020 Quarterly Net Income from Unit: USD mm 2Q2020 to 1Q2021 Higher income stability from more diversified income source n.m. 320 ~ USD 40 – 50 mm of annua
Slide 46: Illustrative Timeline
-46- Illustrative Timeline May 21 Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 Q1/22 Q2/22 Q3/22 Q4/22 21 May 21 BoD approval for M&A SPV establishment & Definitive agreement negotiation 29 Jul 21 Acquisition Definitive agreement execution & SET disclosure Closing Target CAP FID for 2nd transact
Slide 47: Key Investment Summary
-47- Key Investment Summary 1. Strategic Fit to TOP 2. Indonesia – A Strategic Market 3. CAP – A Premier Operator • Jump-start our Olefins value chain • The region is our investment playground • Largest PetChem producer in Indonesia • Perfectly timed with CFP project • Young & fastest growing econom
Slide 48: 2H/21 Outlook
48- --48- 2H/21 OUTLOOK • Crude Oil • Refinery • Aromatic • Base Oil & Bitumen
Slide 49: Stable Oil Price on Improved Demand Amid Higher OPEC+ Supply in 2H/21
--49- 49- Stable Oil Price on Improved Demand Amid Higher OPEC+ Supply in 2H/21 A High Global Vaccination Coverage Rate amid High Delta New Cases B Expected Higher Global Demand with Limited Lockdown % People MBD 2021 Global Oil Demand By Publication Vaccination Coverage Rate Risk Factor 102 • Expec
Slide 50: Increasing Refinery Margin on Recovering Economic after Easing Restrictions
--50- 50- Increasing Refinery Margin on Recovering Economic after Easing Restrictions Singapore Cracking GRM ($/BBL) 8.2 7.2 7.1 7.0 6.5 6.4 6.4 6.1 6.1 5.9 4.3 3.7 3.2 3.5 3.4 1.7 1.2 1.2 1.8 2.1 0.0 0.4 -0.9 Q1/17 Q2/17 Q3/17 Q4/17 Y2017 Q1/18 Q2/18 Q3/18 Q4/18 Y2018 Q1/19 Q2/19 Q3/19 Q4/19 Y2019
Slide 51: Improving Gasoline and Jet Demand After Easing Lockdown
-51- -51- Improving Gasoline Demand on Higher Global Mobility after Easing Lockdown Recovering Jet Demand on Re-Opening Border Higher Gasoline Demand in 2H/21 on Easing Lockdown Higher EU/US Demand following by Asia’s Demand in Q4/21 A Increase EU/US Gasoline Demand amid Slower Recovery in SEA A Asi
Slide 52: Improving Gasoil and Fuel Oil Market
-52- -52- Gradually Improving Economic Activities to Support Global Gasoil Demand Improving Fuel Oil Market on Higher Trading Activities and ME Summer Demand Improving Gasoil Demand on Economic Recovery Rising Trading and ME Demand to Support Fuel Oil Market A Expanding Global Economy to Support Dem
Slide 53: Fluctuating Domestic Demand in 2H/21 amid the 4th Wave of COVID-19
-53- -53- Fluctuating Domestic Demand in 2H/21 amid the 4th Wave of COVID-19 A Lower Gasoline Demand on Travel Restriction Measures B Higher Jet Demand on Recover of International Flight Movements Gasoline Demand Jet Demand MML/Day Pre-COVID Pre-COVID 2H/21 vs 1H/21: MML/Day 40 -6.7% YoY Level Level
Slide 54: More Aromatics Supply from Mega Capacity amid Good Demand Growth
-54- -54- More Aromatics Supply from Mega Capacity amid Good Demand Growth A Short MoreTerm SupportAddition Capacity by SM Run Rate amid and LowerDemand Recovered BZ Stock B Improved market inAddition More Capacity 2021 due to Less amid Capacity Recovered Addition Demand AP/ME PX Capacity Addition v
Slide 55: Higher Base Oil Capacity Addition and Easing Tight Feedstock Supply Situation
-55- -55- Higher Base Oil Capacity Addition and Easing Tight Feedstock Supply Situation A Higher Base Oil Supply in 2H/21 B Lower Asian Plant Maintenance in 2H/21 to Ease Gr.1 Supply Supply Disruption MTON AP Base Oil Effective Capacity Addition KTON/Month Asia Pacific Base Oil Plant Maintenance Rat
Slide 56: 2H/21 Outlook Conclusion
-56- -56- 2H/21 Outlook Conclusion (vs. 1H/21) Crude Oil Supportive Oil Market on Improved Demand due to Widely Vaccine Roll Out amid Higher OPEC+ Supply Increasing Refinery Margin on Gradually Expanding Economic Activities after Easing Refinery COVID-19 Restrictions Aromatics More Aromatics Supply
Slide 57: Final Remarks
-57- -57- FINAL REMARKS
Slide 58: Looking Forward
-58- -58- Looking Forward 2H/21 Market Stable crude oil prices on improving demand amid higher OPEC+ supply Market GRM improves on higher oil demand from less COVID-19 restriction and lower crude premium Robust aromatic & LAB and lube contribution Optimized overall utilization to cope with low oil d
Slide 59: Looking Forward: 2021-2023 Roadmap
-59- -59- Looking Forward 2021-2023 Roadmap 2018 – 2021 2021 – 2025 2024 – 2030 Accelerate the Reform Building on Our Strong Foundation : IC2C Post CFP : New Round of Growth • Key investment made • Deliveries of investment : CFP & CAP2 • Realize strong earnings growth from COVID-19 industry up-cycle
Slide 60: Appendix
-60- APPENDIX • Performance analysis • Sustainability / ESG • Refinery capacity addition • Aromatics • World GRM / Inventories • Thailand petroleum demand by products
Slide 61: Refinery: Softening Mkt GRM Pressured by Higher Crude Premium
Performance Analysis -61- Refinery: Softening Mkt GRM Pressured by Higher Crude Premium Dubai Crude Price & Key Petroleum Product Spreads Refinery Utilization 2020 2021 2020 Q1/21 Q2/21 1H/20 1H/21 $/bbl Q1 Q2 Q3 Q4 Q1 Q2 1H Q3TD* FY 100% 98% 105% 99% DUBAI (DB) 50.9 30.6 42.9 44.6 60.0 66.9 63.5 72
Slide 62: Aromatic: Higher Contribution Supported by BZ & LAB Margins
Performance Analysis -62- Aromatic: Higher Contribution Supported by BZ & LAB Margins Aromatic Spreads and Margins Aromatics Production 2020 2021 2020 Q1/21 Q2/21 1H/20 1H/21 $/ton Q1 Q2 Q3 Q4 Q1 Q2 1H Q3TD* FY 80% 89% 78% 85% PX-ULG95 218 214 143 146 195 206 201 223 180 BZ-ULG95 126 90 25 115 182 3
Slide 63: Base Oil: Robust Contribution Supported by Strong Lube Spread
Performance Analysis -63- Base Oil: Robust Contribution Supported by Strong Lube Spread Base Oil & Bitumen Spreads & Margins Base oil Production 2020 2021 2020 Q1/21 Q2/21 1H/20 1H/21 $/ton Q1 Q2 Q3 Q4 Q1 Q2 1H Q3TD* FY 93% 95% 85% 94% 500SN-HSFO 369 372 340 474 783 1,037 910 979 389 Q2/21 Market BI
Slide 64: Q2 & 1H/21 Financial Performance
Financial Performance -64- Q2 &1H/21- Financial Performance TOP Group Net Profit Gross Refining Margin - GRM Unit : million THB (MB) Q1/21 Q2/21 1H/20 1H/21 $/bbl Q1/21 Q2/21 1H/20 1H/21 3,360 MB 2,123 MB (11,274) MB 5,483 MB Market GRM 0.7 0.4 0.7 0.6 Stock 6.2 4.9 (7.3) 5.5 38 Gain/(Loss) 98 Stock
Slide 65: Power Sector Performance…Growing Contribution to the Group
Financial Performance -65- Power Sector Performance…Growing Contribution to the Group Power Business Sector Equity holding in SPP (4) (5) 74% 100% Power & Steam Sales Electricity(1) 2,544 (4) Thaioil Power(TP) completely transferred whole business to 2,491 2,455 (GWh) be under TOP in Feb’21 455 397
Slide 66: Performance Breakdown
Financial Performance -66- -66- Performance Breakdown Petrochemical & (2) Others & (3) Consolidated Stock Gain/ Consolidated Petroleum Power Net Profit Net Profit Lube Base(1) New Business (incl. Stock G/(L) (Loss) (excl. Stock G/(L) Q1/21 898 1,431 598 380 3,360 4,656 (1,296) Q2/21 (1,014) 2,302 70
Slide 67: Q2 & 1H/21 TOP Group Consolidated P&L
Financial Performance -67- Q2 & 1H/21 TOP Group Consolidated P&L (Unit : MB) Q2/21 Q1/21 QoQ+/(-) Q2/20 YoY+/(-) 6M/21 6M/20 YoY+/(-) Represented Represented (A) (C) Sales Revenue 78,120 73,449 4,671 49,246 28,874 151,570 125,815 25,755 Net Realized G/(L) on Financial Instrument (56) (119) 63 (45) (
Slide 68: 1H/21 Consolidated Cash Flow
Financial Performance -68- 1H/21 Consolidated Cash Flow 1H/21 1H/20 1H/21 1H/20 (Unit: MB) Represent Represent Operating Cash Flow (CFO) 1,059 (899) Investing Cash Flow (CFI) (11,745) (66,440) Net income 5,731 (10,947) Dividend income 757 841 Depreciation & NRV 3,628 4,641 ST investments 5,252 (42,0
Slide 69: ESG/Sustainability Highlights
ESG/Sustainability -69- ESG/Sustainability Highlights Environmental Social Governance Toward Green Economy Toward Better Quality of Life Toward Transparency Greenhouse Gases (GHGs) Communities Structure & Oversight • Reduced 4% direct GHG emission from BAU by • Thaioil CSR program supported medical
Slide 70: ESG/Sustainability Highlights 2020 – 1H/21
ESG/Sustainability -70- ESG/Sustainability Highlights 2020 – 1H/21 Industry Leader Sustainability Award Leading Practices Platinum Award Listed in Thailand in oil & gas refining and (Gold Class) for Business Model-Value Sustainability marketing industry for 6 in oil & gas refining Creation disclosed
Slide 71: Demand Growth to Outpace Refining Capacity Addition in Medium Term
CDU Addition VS Additional Demand – AP & ME -71- -71- Demand Growth to Outpace Refining Capacity Addition in Medium Term Asia Pacific and Middle East Effective CDU Addition VS Additional Demand AP & ME Demand Growth Middle East China Key Projects : New Addition Japan India Vietnam Country Company CD
Slide 72: AP/ME PX Balance
Aromatics -72- AP/ME PX Balance AP/ME PX Supply Demand Balance 2011-2019 (CAGR) 2020 2021 2022-2025 (CAGR) Mil TON Cap: 5.9% 15.6% 4.5% Cap: 2.9% Operating Rate Dem: 6.6% -1.5% 2.3% Dem: 4.4% 100 100% 80 80% 60 65.7 72.1 71.6 71.6 60% 59.7 62.3 40 45.3 51.5 44.5 46.7 48.4 50.7 40% 40.6 41.2 43.2 39.
Slide 73: AP/ME BZ Balance
Aromatics -73- AP/ME BZ Balance AP/ME BZ Supply Demand Balance 2011-2019 (CAGR) 2020 2021 2022-2025 (CAGR) Cap: 3.2% 7.6% 4.0% 0.9% Mil TON Dem: 4.9% -1.8% 7.6% 3.9% Operating Rate 60 90% 50 49.6 50.7 51.0 51.0 80% 40 45.6 47.4 40.2 42.4 39.8 41.2 37.2 37.7 39.0 38.1 30 32.9 32.8 34.5 36.8 33.2 32.6
Slide 74: Asian Margin Vs. US-EU margin
World GRM -74- Asian Margin Vs. US-EU margin $/BBL $/BBL SINGAPORE GRM EU – US Margins 70 15 60 10 50 5 40 0 30 20 -5 10 -10 0 -15 -10 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 SING CRACK SING HYDRO BRENT CRACK BRENT HYDRO WTI CRA
Slide 75: Global Crude Oil Inventories
Inventories -75- Global Crude Oil Inventories MBBL U.S. Crude Stocks (excl. SPR) MBBL Crude Oil, Cushing, Oklahoma 600 Source : EIA 80 Source : EIA 550 70 500 60 50 450 40 400 30 350 20 300 10 250 0 1 5 9 13 17 21 25 29 33 37 41 45 49 1 5 9 13 17 21 25 29 33 37 41 45 49 5yr-range 2019 2020 2021 avg
Slide 76: Global Gasoline Inventories
Inventories -76- Global Gasoline Inventories U.S. Gasoline Stocks Singapore Gasoline Stocks MBBL Source : EIA MBBL 280 20 Source : IE Singapore 260 240 10 220 200 180 0 1 5 9 13 17 21 25 29 33 37 41 45 49 1 5 9 13 17 21 25 29 33 37 41 45 49 5yr-range 2019 2020 2021 avg 16-20 5yr-range 2019 2020 2021
Slide 77: Global Middle Distillate Inventories
Inventories -77- Global Middle Distillate Inventories U.S. Diesel Stocks Singapore Middle Distillate Stocks MBBL MBBL 200 Source : EIA 20 Source : IE Singapore 180 160 140 10 120 100 80 0 1 5 9 13 17 21 25 29 33 37 41 45 49 1 5 9 13 17 21 25 29 33 37 41 45 49 5yr-range 2019 2020 2021 avg 16-20 5yr-r
Slide 78: Global Fuel Oil Inventories
Inventories -78- Global Fuel Oil Inventories U.S. Residual Fuel Oil Stocks Singapore Residual Fuel Oil Stocks MBBL MBBL Source : IE Singapore Source : EIA 50 40 30 40 20 30 10 20 0 1 5 9 13 17 21 25 29 33 37 41 45 49 1 5 9 13 17 21 25 29 33 37 41 45 49 5yr-range 2019 2020 2021 avg 16-20 5yr-range 20
Slide 79: China's Refined Product Exports
Inventories -79- China’s Refined Product Exports China’s Gasoline Exports China’s Gasoil Exports KBD KBD Source : China Custom Source : China Custom 600 800 500 700 600 400 500 300 400 200 300 200 100 100 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 2020 2
Slide 80: Domestic LPG Demand
Thailand petroleum demand by products -80- Domestic LPG Demand Thailand LPG Demand LPG Demand Highlight KT/Day 2021 2019 2018 2020 • In 1H’21, LPG demand increased by 10.2% YoY mainly following the increase in industrial and petrochemical sectors. LPG 20 demand in the industry and petrochemical sect
Slide 81: Domestic Gasoline/Gasohol Demand
Thailand petroleum demand by products -81- Domestic Gasoline/Gasohol Demand Thailand Gasoline/Gasohol Demand GASOLINE/GASOHOL Demand Highlight MML/Day • In 1H’21, Gasoline demand was slightly increased by 0.2% YoY 2021 2020 2019 2018 to an average of 29.7 MML/day while Gasohol demand 36 increased by
Slide 82: Domestic Jet Demand
Thailand petroleum demand by products -82- Domestic Jet Demand Thailand JET Demand JET Demand Highlight MML/Day 2021 2020 2019 2018 • In 1H’21, Jet consumption decreased by 53.1% YoY. Although 24 the demand was recovered in Mar-Apr’21, the demand started to decrease again in May’21 as the COVID-19 i
Slide 83: Domestic Gasoil and NGV Demand
Thailand petroleum demand by products -83- Domestic Gasoil and NGV Demand Thailand Gasoil Demand Gasoil Demand Highlight MML/Day 2021 2020 2019 2018 • In 1H’21, Gasoil demand increased by 0.2% YoY. After Gasoil 72 70.5 demand was supported by the economic improvement in Feb- 69.3 Mar’21, the Thai ec
Slide 84: Domestic Fuel Oil Demand
Thailand petroleum demand by products -84- Domestic Fuel Oil Demand Thailand Fuel Oil Demand 2021 2020 2019 2018 Fuel Oil Demand Highlight MML/Day • In 1H’21, Fuel Oil consumption rose by 19.6% YoY, as the 8 demand in the transportation sector, which accounted for 57.1% 5.9 5.6 of total Fuel Oil dem
Slide 85: Thank You
--85- 85- Thank You Any queries, please contact: at email: [email protected] Tel: 662-797-2999 / 662-797-2961 Fax: 662-797-2976
Thai Oil Public Company — Investor Presentation (October 2021) on 6ix