Analyst Briefing – Q2/2005ptt.listedcompany.com/misc/presentations/18en2005-08-18... ·...

1

Analyst Briefing Analyst Briefing –– Q2/2005Q2/200518 August 200518 August 2005

2

DisclaimerDisclaimer

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 the

our assumptions are correct. Actual results may differ materially

from those projected.

3

•• Projects & InvestmentsProjects & Investments

•• Financial PerformanceFinancial Performance

•• Operational ResultsOperational Results

•• HighlightsHighlights

4

• Announcement of GSP#6 to support ethane cracker project, start up by Q4/08

• MOU signed for a merger of RRC and SPRC, which RRC serving as a core, expected to be listed on SET by year-end

• SPA signed on 1 Jun to invest in TPI; completing transaction by 4 Nov• NPC&TOC merger received full support from major shareholders; the new

company is to become PTT’s flagship in Olefins business

Recent Major Developments of PTT and AffiliatesRecent Major Developments of PTT and Affiliates

Gas BusinessGas Business

Refining BusinessRefining Business

Petrochemical BusinessPetrochemical Business

• 10-year bond issuance of Bt4,000m, rated AA+ by Fitch with swap into USD equivalent to approx. $100m

• 30-year bond issuance of $350m, rated A2/BBB+ by Moody’s and S&P• Several measures being implemented to address issue of water shortage

in Rayong

PTT GroupPTT Group

5

Q2/2005 Financial Snapshot : Another Solid QuarterQ2/2005 Financial Snapshot : Another Solid Quarter

Q2/2004Q2/2004 Q2/2005Q2/2005

32%

68%

Sales ~ 150,673 MB

46%

9%

45%

66%

22%

12%

Sales ~ 226,291 MB

EBITDA ~ 19,470 MB EBITDA ~ 28,334 MB

40%

5%

16%

39%

Note : Sales excluding all eliminations and EBITDA excluding others and all eliminations where RRC and BPE are grouped in Petrochem & Refinery.

+ 75,618 MB (+ 50%)

+ 8,864 MB (+ 46%)

: TM ~ 20%: Mkt/Dist ~ 9%: GSP ~ 16%

: TM ~ 14%: Mkt/Dist ~ 9%: GSP ~ 16%

Gas Group Gas Group

Oil GroupOil GroupPetrochem& Refinery

Petrochem & Refinery

GasGas

PTTEP PTTEP

Oil Group

Oil Group

6

Q2/2005 Financial Snapshot : Another Solid QuarterQ2/2005 Financial Snapshot : Another Solid Quarter

51%

33%

16%

14% 19%

44%23%

Q2/2004Q2/2004 Q2/2005Q2/2005

15%

44%

41%

Net Income ~ 14,083 MB

52%33%

15%


Capital Employed* ~ 295,986 MB Capital Employed ~ 321,880 MB

+ 4,272 MB (+ 30%)

25,894 MB (+ 9%)

: Mkt/Dist/TM ~ 30%: GSP ~ 6%: PTTEP ~ 16%

PTTEP PTTEP

PTT

AssociatesAssociates

Associates

GasGas

OilOil

: Refinery ~ 15%: Petrochem ~ 26%


Associates


RRC

* Capital employed as of 2004

PTT

7

1H/2005 Financial Snapshot1H/2005 Financial Snapshot

1H/20041H/2004 1H/20051H/2005

32%

68%

Sales ~ 287,816 MB

46%

9%

45%

65%

22%

13%

Sales ~ 417,453 MB

EBITDA ~ 37,277 MB EBITDA ~ 53,228 MB

39%

7%

15%

39%

Note : Sales excluding all eliminations and EBITDA excluding others and all eliminations where RRC and BPE are grouped in Petrochem & Refinery.

+ 129,637 MB (+ 45%)

+ 15,951 MB (+ 43%)

: TM ~ 21%: Mkt/Dist ~ 9%: GSP ~ 16%

: TM ~ 15%: Mkt/Dist ~ 7%: GSP ~ 17%

Gas Group Gas Group

Oil GroupOil GroupPetrochem& Refinery

Petrochem & Refinery

GasGas

PTTEP PTTEP

Oil Group

Oil Group

8

1H/2005 Financial Snapshot1H/2005 Financial Snapshot

9%

17%

14%

38%

22%

1H/20041H/2004 1H/20051H/2005

16%

48%

36%


52%33%

15%


Capital Employed* ~ 295,986 MB Capital Employed ~ 321,880 MB

+ 17,994 MB (+ 68%)

25,894 MB (+ 9%)


PTTEP PTTEP

PTT

Associates

Associates

Associates Gas

Oil



RRC

* Capital employed as of 2004

PTT

RRC’s gain fromdebt restructuring

51%

33%

16%

Gas

Oil

Associates


9





10

Gas Business : Stable Income & Growing ContinuouslyGas Business : Stable Income & Growing Continuously

Gas Sales VolumeGas Sales Volume Customer ProfileCustomer Profile

2524

27062730

26592597

2784

28582850

30132970

2500

2600

2700

2800

2900

3000

3100

Q1 Q2 Q3 Q4

MMSCFD

1000 990 1038

742 820 839

419 416 426376 479 461247

265 249

0

500

1000

1500

2000

2500

3000

3500

4000

Q2/04 Q1/05 Q2/05

MMSCFD EGAT IPP SPP

GSP Industry

▪ Gas sales volume growing along with economic expansion

▪ Gas sales volume expected to grow by 7% in 2005 – 3rd pipeline startup in mid 2006

▪ Power producers remain major customers representing ~ 76% of total sales volume

▪ Sales volume to GSP up 23% yoy driven by more gas consumption from GSP#5

2,784 2,970 3,013

+ 8% yoy+ 1% qoq

Yr 2003 avg. = 2,655

Yr 2004 avg. = 2,773

Note : Sales volume including unstabilized NGL

34%

28%

14%

15%

8%

+ 8% yoy+ 1% qoq

+ 4%

11

Gas Separation Plants : Strategic Value CreatorsGas Separation Plants : Strategic Value Creators

Product Sales Volume : Strong contribution from GSP#5Product Sales Volume : Strong contribution from GSP#5

Product Prices : Floating at high levelProduct Prices : Floating at high level

836 847

1048 1106 1050 1015

865 851

1043 1098 1050 985

446

305 319 350430 372 411

160 160 160 160 162 163

434441402360348

0

300

600

900

1200

Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05

$/Ton

PP

HDPE

Naphtha

LPG

COGS

Sources : PP (ICIS – Inject Grade), HDPE (ICIS – Film Grade), Naptha (MOP’Singapore),LPG (Saudi Aramco’s CP), COGS (estimated)

387 385 379 426 451 485

103 104 103 108 103 119138 131 139 139 190 17052 54 50 5059 40

0

300

600

900

Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05

kTon

Propane

Ethane

NGL

LPG

680680 723723803803

5%21%15%

59%

674674 671671

%yoy %qoq

(26%) (32%)

30% (11%)

14% 16%

26% 8%

21% 1%21% 1%

%yoy %qoq

20% (3%)

16% (6%)

24% 3%

29% 10%

- -

• Ethane & propane linked to HDPE & PP through profit-sharing mechanism

• NGL linked to naphtha

814814

12

PTTEP : High Oil Price Driving Record PerformancePTTEP : High Oil Price Driving Record Performance66.48% owned by PTT 66.48% owned by PTT (as of 30 Jun 2005)(as of 30 Jun 2005)

Oil22%Gas

78%

1P Reserves1P Reserves~ 696 ~ 696 mmboemmboe

Leading producer in Thailand with 24.2% market share (Jun 2005)

Product mix by revenues (Q2/05): Gas 55%, Liquid 45%

Solid financial performance

Leadership position in Thailand with international growth potential

Arthit field expected to startup in Q1/07Source : Department of Mineral Resources (as of Dec 2004)

Financial HighlightsFinancial Highlights

PTTEP Reserve (Thailand only)PTTEP Reserve (Thailand only)

8,773 9,441 10,920

3,277 4,254 5,480

16,652 20,360

9,7356,655

133 143 139 131 141

0

5,000

10,000

15,000

20,000

25,000

Q2/04 Q1/05 Q2/05 1H/04 1H/05

MB

0

50

100

150

KBOEDEBITDA NI Sales Volume (RHS)

($/BOE) 22.86 25.42 28.14 22.32 26.77Avg. Sales Price

+7%+4% yoy(3%) qoq

13

Oil Business : Leadership Position & Expansion Capability Oil Business : Leadership Position & Expansion Capability

Oil Marketing : Dominant Position & Strong Brand with 36% MarketOil Marketing : Dominant Position & Strong Brand with 36% Market ShareShare

Oil Trading : Growth Platform Generating Extra Values at MarginaOil Trading : Growth Platform Generating Extra Values at Marginal Costl Cost

Note : Sales excluding supply sales, Source : Ministry of Energy

4,295 3,856 4,390 3,6706,117 5,903

816 916 859 972

934 878344 511 516 500

514 528828 1,170 1,154

895

457 612

0

3,000

6,000

9,000

Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05

ML

Refined Products

Petrochemicals

Condensate

Crude

6,283 6,037

8,022

876 951 804 728 857 1,083

1,350 1,239 1,261 1,400 1,467 1,587318 311 288 307 303 264505 485 462 470 470 494533 528 538 584 613

634

0

1,000

2,000

3,000

4,000

Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05

ML

LPG

Gasoline

Jet/IK

Diesel

Fuel Oil

3,582 3,489 3,71016%12%6%

39%

27%

8%7%11%

74%

3,514 3,353

%yoy %qoq

20% 3%

2% 5%

(15%) (13%)

14% (26%)

28% 8%

16% 9%16% 9%

6,453 6,919%yoy %qoq

(48%) 34%

3% 3%

(4%) (6%)

53% (3%)

23% (1%)23% (1%)

# of gas stations PTT : Total = 1,327 (as of Jun 2005)

7,921

4,062

14

Petrochemical Associates : OlefinsPetrochemical Associates : Olefins

836 847

1048

1106

10501015

865 851

1043

10981050

985

769

826

1073 1062 1054

793

711745

945

998 994

926

348 360402

441 434 446

300

400

500

600

700

800

900

1000

1100

1200

Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05

$/Ton PPHDPEEthylenePropyleneNaphtha

Olefins PricesOlefins Prices NPCNPC

TOCTOC

1272

2890 2467 2350

5357

912 2496 1789 16514285

9791

10295 96

0

2500

5000

7500

10000

2Q04 1Q05 2Q05 1H04 1H05

MB

020406080100120

%Utl

Sources : Naphtha (MOP Singapore), Ethylene & Propylene (ICIS – SEA SP),PP (ICIS – Inject Grade), HDPE (ICIS – Film Grade) EBITDA Net Income %Utilization

1512 1634800

3067 2434

734 1102 508 1688 1610

9486

51

97

69

0

2500

5000

7500

10000

2Q04 1Q05 2Q05 1H04 1H05

MB

020406080100120

%Utl

15

Petrochemical Associates : AromaticsPetrochemical Associates : Aromatics

724

828

546

691

1,089

949 973

842

283 309355 375 385

434

841700

973953

200

400

600

800

1000

1200

1400

Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05

$/Ton

PX

BZ

Condensate

Aromatics PricesAromatics Prices ATCATC

Sources : PX & BZ (CMAI – SEA SP), Condensate (ATC)

EBITDA Net Income %Utilization

● Solid financial increasing capability to compete in unfavorable environment and to facilitate investments

● One of the lowest-cost producers in the industry

● ATC-II expected to startup in Q3/08

24733120

1877

37234996

1612 2698 931 2532 3629

116 114 118 113 116

0

2500

5000

7500

10000

2Q04 1Q05 2Q05 1H04 1H05

MB

020406080100120

%Utl

16

Refining Affiliates : Record Oil Prices Driving PerformanceRefining Affiliates : Record Oil Prices Driving Performance

TOPTOP RRCRRC

BCPBCP

EBITDA Net Income %Utilization

SPRCSPRC

3426

1108 7501647 2191 2402

648 438 1317 1295 1755

7663 59

81

61

0

2500

5000

7500

10000

2Q04 1Q05 2Q05 1H04 1H05

MB

020406080100120

%Utl

5521 63388126

11238

14464

2636 3691 35316633 7222

10595

110 105 102

0

5000

10000

15000

2Q04 1Q05 2Q05 1H04 1H05

MB

020406080100120

%Utl

28383708

47575803

8465

1397 3167 3298 39356465

95 99 95 98 97

0

4000

8000

12000

2Q04 1Q05 2Q05 1H04 1H05

MB

020406080100120

%Utl

2741 29084335

55677243

2187 2110

11249

-39

9062

98 102 98 102 100

-4000

0

4000

8000

12000

2Q04 1Q05 2Q05 1H04 1H05

MB

0

20

40

60

80

100

120%Utl

Note : All figures after restatement

17





18

Consolidated Income Statement : Q2/2005Consolidated Income Statement : Q2/2005

Note : All quarterly data after restatement, EBT = Earning before taxes and minority interests

(29.4)

-

0.6

(29.4)

-

0.5

1.8

12.7

3.6

3.0

(21.8)

(8.3)

17.1

16.5

20.5

18.4

%QoQ

9.42

-

9.42

26,357

-

26,357

4,803

4,141

8,946

37,719

9,564

3,784

30,097

37,277

7,637

287,816

1H/04

15.85

2.77

13.08

44,351

7,738

36,612

6,534

4,342

12,821

52,837

10,275

4,316

45,391

53,228

11,458

417,453

1H/05

68.3

38.9

68.3

38.9

36.0

4.9

43.3

40.1

7.4

14.1

50.8

42.8

50.0

45.0

%Chg

30.46.569.295.03EPS

--2.77-EPS (from extra items)

30.46.566.525.03EPS (excl. extra items)

30.318,35525,99614,083NI

--7,738-- Extraordinary items

30.318,35518,25814,083NI (excl. extra items)

24.63,2963,2382,645- PTTEP

1.12,3012,0422,277- PTT

32.66,5246,2974,921Taxation

32.726,81126,02620,207EBT

(22.4)4,5095,7665,812Share of Inv. Inc.

9.72,0652,2511,882Interest Exp.

52.224,17320,64115,879EBIT

45.528,33424,31619,470EBITDA

62.76,7855,6314,169S&A Exp.

50.2226,291191,161150,673Sales

%YoYQ2/05Q1/05Q2/04Unit : million Baht except EPS (Baht/share) and percentages

19

Share of Net Income from AssociatesShare of Net Income from AssociatesIncome from Associates of 4,509 MB (~ 25% of Total Net Income)Income from Associates of 4,509 MB (~ 25% of Total Net Income)

Q2/04 : Net Income ~ 14,083 MBQ2/04 : Net Income ~ 14,083 MB Q2/05 : Net Income ~ 18,355 MBQ2/05 : Net Income ~ 18,355 MB

19%

23%

44%

14%

Refineries ~ 2,141Refineries ~ 2,141

TOP ~ 1,481 / SPRC ~ 510TLB ~ 150


TOP ~ 1,825 / SPRC ~ 1,178

Petrochemicals ~ 3,608Petrochemicals ~ 3,608

NPC ~ 423 / TOC ~ 391,ATC ~ 2,905 / TPX ~ (111)


NPC ~ 210 / TOC ~ 840ATC ~ 429 / PTT Phenol ~ (4)

44%

15%

41%

5,812 MB5,812 MB

: Refinery 15%: Petrochem 26%

(FX loss ~ 1,221 MB)

4,509 MB4,509 MB



Unit : million Baht except percentages

Contribution to Net Income from Major AssociatesContribution to Net Income from Major Associates

-- 2,133 (2,133 (--59%)59%)

+ 862 (+40%)+ 862 (+40%)

-22%

PTT

PTTEP

Associates*

PTT

PTTEP

Associates*

RRC

* Incomes from associates also include 63 MB (Q2/04) and 31 MB (Q2/05).

20

Share of Net Income from AssociatesShare of Net Income from AssociatesIncome from Associates of 10,275 MB (~ 23% of Total Net Income)Income from Associates of 10,275 MB (~ 23% of Total Net Income)

1H/04 : Net Income ~ 26,357 MB1H/04 : Net Income ~ 26,357 MB 1H/05 : Net Income ~ 44,351 MB1H/05 : Net Income ~ 44,351 MB

14%

22%

38%

9%

17%


TOP ~ 3,643 / SPRC ~ 1,430TLB ~ 340


TOP ~ 3,607 / SPRC ~ 2,230


NPC ~ 783 / TOC ~ 705,ATC ~ 3,330 / TPX ~ (202)


NPC ~ 683 / TOC ~ 2,023ATC ~ 1,672 / PTT Phenol ~ (5)

48%

16%

36%

9,564 MB9,564 MB



10,275 MB10,275 MB



Unit : million Baht except percentages

Contribution to Net Income from Major AssociatesContribution to Net Income from Major Associates

-- 243 (243 (--5%)5%)

+ 424 (+8%)+ 424 (+8%)

+7%

PTT

PTTEP

Associates*

PTT

PTTEP

Associates*

RRC

Gain from debt restructuring

* Incomes from associates also include -465 MB (1H/04) and 65 MB (1H/05).

21

Balance Sheets & Financial RatiosBalance Sheets & Financial Ratios

Balance SheetsBalance Sheets Financial RatiosFinancial Ratios

128,942184,915 211,696

195,389

302,311 268,549

0

100,000

200,000

300,000

400,000

500,000

600,000

2003 2004 1H05

MB Liabilities

Equities

● Changes since year-end 2004

− Total assets down 6,981 MB (-1.4%)

− Total equities up 26,781 MB (+14.5%)

324,331

487,226 480,245

0.5 0.6 0.5

1.01.2

1.0

1.4

1.0

0.7

7.7

9.4

12.3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2003 2004 1H050

2

4

6

8

10

12

14

Net Debt/E

ICR (RHS)

Net Debt/EBITDA

IBD/E

● Treasury Policy is strictly followed

− Net Debt/E <= 1.0

− Net Debt/EBITDA <= 2.0

22

Debt Profile : Cost Control & Risk ManagementDebt Profile : Cost Control & Risk Management

LongLong--term Debts term Debts –– by Currencyby Currency LongLong--term Debts term Debts –– by Companyby Company

* Data as of 30 Jun 2005 (THB/USD = 41.4091)

91,730108,048 106,472

22,152

93,477

51,31611,193

0

50,000

100,000

150,000

200,000

250,000

2003 2004 1H05

MB JPYUSDTHB

201,525201,525

54%

46%

● Debt portfolio designed to match revenue structure● Total debt repayment (for PTT only) ~ 46,165 MB for the next 5 years

157,788157,788

67%

33%

6.026.02157,788157,78851,31651,316106,472106,472TotalTotal

4.74636636-TTM(M)

4.739,1519,151-TTM(T)

4.00366-366DCAP

3.93107-107PTTNGD

4.501,7171,348369BPE

7.3318,78416,2842,500PTTEP

5.95127,02723,897103,130PTT

Cost %TotalUSDTHBMB Equivalent

Average loan life Average loan life –– Consolidated (6.4 years) / PTT Only (6.0 years)Consolidated (6.4 years) / PTT Only (6.0 years)

(22%)(22%)

125,075125,075

73%

18%

9%

RRC’s debt repayment of $1,135mn, reducing LT debts

RRC (PTT on lend) 28,572 L+2.RRC (PTT on lend) 28,572 L+2.55

23





24

CAPEX & Investments : Building Infrastructure to GrowCAPEX & Investments : Building Infrastructure to Grow

CAPEX & JV Investments : 2005 CAPEX & JV Investments : 2005 –– 2009 to serve growing gas demand2009 to serve growing gas demand

Total Capex ~ 212,266 MB ($5.6bn) which 91% invested in gas business group

13,516

40,895

49,093

26,777 28,796

10,669

1,627

5,371

3,392

2,9823,041

2,645

10,988

17,104 5,263

6,405 4,549

3,018

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2004 2005 2006 2007 2008 2009

MB

Others

JV

Oil

Gas

64,35164,35158,06858,068

36,47136,471 36,70836,708

16,66916,669

26,29526,295

PTTEP - 30,365 38,790 19,739 14,317 8,521 111,732

Sources : PTT, 1 USD = 38.00 THB, PTTEP (Analyst Meeting – Q2/2005 Financial Results)

25

Strategic Roadmap : Core Gas BusinessStrategic Roadmap : Core Gas Business

* Excluding onshore pipeline to Namphong field

0

1,000

2,000

3,000

4,000

5,000

2004 2005 2006 2007 2008 2009

MMSCFD

Serving as a growth platform to capture more opportunities alongServing as a growth platform to capture more opportunities along the gas value chainthe gas value chain

Tran

smis

sion

Gas

se

para

tion

pl

ant

Completed Projects

2005 2006 2007 2008 2009

Pipeline Capacity(Q1/05: 3,310 mmcf/d)

Completed Projects

Production Capacity (Q1/05: 2.7mta)

BV7 Comp.

3,410

GSP#5

3.9 mta

3rd Pipeline #1

4,110

GSP#1 revamp

4.0 mta

4,110

4.4 mta

3rd Pipeline #2Offshore Comp.

5,270

Ethane PlantGSP#2,3

5.0 mta

5,270

GSP#6

6.6 mta

Existing

Power

IndustryGSP

Total Demand Growth (CAGR 2005-2009 ~ 12%)

Total Gas Demand~ 4,691 mmscfd

26

Strategic Roadmap : Value EnhancersStrategic Roadmap : Value Enhancers

Existing - 2005 2006 2007 2008 2009

TOC (PTT 48.97%)

Ethylene 685 ktaPropylene 190 kta

NPC (PTT 37.99%)Ethylene 461 ktaPropylene 127 kta

HDPE 250 kta

Joint Ventures(PTT 40%, TOC 20%,NPC 20%, ATC 20%)

EO/EG #1MEG 220 kta

EO 80 ktaEthylene from expansion

Debot Plant #1Ethylene 130 ktaPropylene 120 kta

NGL from GSP, Naphta from PTT

EO/EG #2MEG 220 kta

Ethylene from debotplant #2

Debot #2Ethylene 100 ktaPropylene 50 kta

LPG from PTT

Ethane Cracker 1mtaLDPE 300 ktaLLDPE 400 kta

Ethane from GSP

ATC (PTT 45.94%)PX 495 ktaBZ 467 kta

CyclohexaneCHX 150 kta

Benzene as feedstock

Aromatics IIPX 565 ktaBZ 297 kta

Condensate from PTT

Utilities #1Power 48 MWSteam 45 T/hrNG from PTT

PhenolPhenol 200 kta

Acetone 125 ktaPropylene from NPC&TOC, BZ from ATC

DebotCapacity + 50,000 bpd

TOP (PTT 49.54%)~ 220,000 bpd

RRC (PTT 100.00%)~ 145,000 bpd

SPRC (PTT 36.00%)~ 150,000 bpd

27

ConclusionsConclusions

• Q2/05 was another strong quarter driven by solid performance on the core businesses – gas, PTTEP, and GSP.

• High quality assets, stable cash flow, and strong financial position helped PTT to outperform the overall market in the quarter.

• Oil prices are hovering at record high and likely to stay buoyant throughout this year, which is in favor of PTTEP, GSP, and refineries.

• All major associates are strong financially and operationally and continue to make important contribution to the bottom line.

• Investments are gearing toward expanding gas business to ensure high level of profitability and predictability.

• Group restructure is on progress, focusing on enhancing competitiveness, growing platform for growth, and capturing gas values over the long term.

• Entering to 2H/05, the year 2005 is expected to be another excellent year for PTT Group.

28

Thank you.Thank you.

PTT Public Company Limited – Investor Relations DepartmentTel. (+66 2) 537-2787 Email: [email protected] http://www.pttplc.com/

29

AppendixAppendix

30

PTT : The Only Integrated Gas Company in ThailandPTT : The Only Integrated Gas Company in ThailandMinistry of Finance 52%, Public 48%Ministry of Finance 52%, Public 48%

Largest Thai Public CompanyLargest Thai Public Company Global RecognitionGlobal Recognition

14%

12%

74%

0.416,770Other Affil.0.835,960NPC

0.942,822ATC

1.049,268TOC

2.6121,382TOP

6.0282,857PTTEP

14.0660,150PTT

25.61,207,208PTT Group100.04,714,917SET

%Market Cap. (Bt mn)

6,576

0

1000

2000

3000

4000

5000

6000

7000

Bt bn

Note : All data as of 11 Aug 2005 except GDP (as of 2004, NESDB); SET=681.95 (P/E=8.90), PTT=236 (P/E=8.64)

PTT Group 18.4%

PTT 10.0%GDP

SET 71.7%

1st : Best Managed Companies in Thailand

Asia’s Best Companies 2005• 1st : Best Managed Company in Thailand• 1st : Best Corporate Governance in Thailand

1st : Best in Corporate Governance in Thailand

A-A2LocalBBB+A2ForeignS&PMoody’s

Sovereign Ratings

PTTPTT

OthersOthers

AffiliatesAffiliates

PTT Group representslarge portion of

Thai economy

373rd : World’s Largest Corporations

425th : World’s 2,000 Leading Companies

31

PTT VisionPTT Vision : To be a high-performance energy company with reasonable return to stakeholders

PTT Group StrategyPTT Group Strategy

Business GroupBusiness Group StrategyStrategy

CoreCoreValue CreatorsValue Creators

IntegratedIntegratedValue EnhancersValue Enhancers

E & PE & PE & P

GasGasGas

Grow in Thailand and beyondGrow in Thailand and beyond

Pursue growth vigorously & Add valuesPursue growth vigorously & Add values

RefiningRefiningRefining

PetrochemicalPetrochemicalPetrochemical

MarketingMarketingMarketing

TradingTradingTrading

Restructure & ConsolidateRestructure & Consolidate

Expand Expand ““cautiouslycautiously””

Increase efficiency, Segment & Add valuesIncrease efficiency, Segment & Add values

Build capabilities, Expand & LeverageBuild capabilities, Expand & Leverage

32

Corporate StructureCorporate Structure

PTTPTT

Gas Business GroupGas Business Group Petrochemical & RefiningPetrochemical & Refining

• Exploration and production• Transmission and distribution• Processing• Supply and marketing

• Gas-based petrochemicals• Refineries

• PTT Exploration & Production Plc. (PTTEP) 66.48%

• Trans Thai-Malaysia (Thailand) Co.,Ltd. 50.00%

• Trans Thai-Malaysia (Malaysia) Sdn. Bhd. 50.00%

• PTT Natural Gas Distribution Co.,Ltd. 58.00%

• PTT Utility Co.,Ltd. (PTTUT) 40.00%

• District Cooling System and Power Plant 35.00%

• Independent Power (Thailand) Co.,Ltd. (IPT) 20.00%

• Ratchaburi Power Co.,Ltd. (RPCL) 15.00%

• PTT LNG Co.,Ltd. (PTTLNG) 100.00%

Petrochemical• Thai Olefins Plc. (TOC) 48.97%

• Aromatics (Thailand) Plc. (ATC) 45.94%

• National Petrochemical Plc. (NPC) 37.99%

• Bangkok Polyethylene Plc. (BPE) 50.00%

• PTT Phenol Co.,Ltd. (PPCL) 40.00%

• PTT Polyethyelene Co.,Ltd. (PTTPE) 50.00%

• PTT Polymer Marketing Co.,Ltd. (PTTPM) 50.00%

Refining• Thaioil Plc. (TOP) 49.54%

• Rayong Refinery Plc. (RRC) 100.00%

• Star Petroleum Refining Co.,Ltd. (SPRC) 36.00%

• Bangchak Petroleum Plc. (BCP) 7.88%

Note : Corporate structure as of 30 Jun 2005

Oil Business GroupOil Business Group

MarketingMarketing• Commercial• Retails• Resellers• International

TradingTrading• Crude and

condensate• Refined products• Petrochemicals

• PTT International Trading Pte. (PTTT) 100.00%

• PTT (Cambodia) Co.,Ltd. (PTTCL) 100.00%

• Subic Bay Energy Co.,Ltd. (SBECL) 100.00%

• Retail Business Alliance Co.,Ltd. (RBA) 49.00%

• Thai Lube Blending Co.,Ltd. (TLBC) 48.95%

• Vietnam LPG Co.,Ltd. (VLPG) 45.00%

• Keloil PTT LPG Sdn.Bhd. (KPL) 40.00%

• PetroAsia (Thailand) Co.,Ltd. 35.00%

• PetroAsia (Sanshui) Co.,Ltd. 25.00%

• Thai Petroleum Pipeline Co.,Ltd. 30.60%

• Intoplane Services Co.,Ltd. (IPS) 16.67%

• Bangkok Aviation Fuel Services Plc. (BAFS) 7.06%

• Fuel Pipeline Transportation Co.,Ltd. (FPT) 2.76%Others

• Energy Complex Co.,Ltd. (EnCo) 50.00%

• Dhipaya Insurance Plc. (TIP) 13.33%

33

ThailandThailand’’s Energy Consumptions Energy Consumption(Include Petrochemical Feedstock)(Include Petrochemical Feedstock)

Source : EPPO

0

500

1000

1500

2000

2500

3000

3500

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

KBOED

6565%%

2020%%

5%5%

1010%%

325325

20042004ActualActual ProjectionProjection

5454%%

3131%%

2%2%

1313%%

1,6771,677

4949%%

3636%%

1%1%

1414%%

3,2003,200

OilOil

Gas/LNGGas/LNG

CAGR (1985CAGR (1985--2004) ~ 9%

2004) ~ 9%CAGR (2004CAGR (2004--2015) ~ 6%

2015) ~ 6%

• Current energy consumption is around 1,677 kboed and is expected to grow by 6% annually during 2004-2015.

• Oil and gas are major sources of energy and will remain so for many years;PTT has a very strong presence in both markets.

Hydro/OthersHydro/Others

Coal/LigniteCoal/Lignite

34

Gas Demand Outlook in Thailand : Growing ConstantlyGas Demand Outlook in Thailand : Growing Constantly

Source : PTT ( based on PDP 2004)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015

MMSCFD

• Based on Power Development Plan (PDP) 2004, there will be new capacity of 8,078 MW during 2005-2010, of which 5,660 MW or around 70% are gas-fired expected to consume natural gas of ~ 800 MMSCFD.

• 2011 – 2015, there will be new capacity of new IPP 12,600 MW (18 x 700 MW , plus Renewable Portfolio Standard or RPS 630 MW), projection assuming 40% of new IPP are gas-fired.

PowerPower

GSPGSP

ActualActual ProjectionProjection

CAGR (1998

CAGR (1998--2004) ~ 9%2004) ~ 9%

CAGR (2004

CAGR (2004--2015) ~ 7%2015) ~ 7%

1212%%

64%64%

24%24%99%%

77%77%14%14%

5,9005,900

IndustryIndustry

2,7802,780

20042004

35

GSPsGSPs : Increase Gas Consumption & Enhance Gas Value: Increase Gas Consumption & Enhance Gas ValueExtracting valuable components from natural gas to produce highExtracting valuable components from natural gas to produce high--value productsvalue products

0

100

200

300

400

500

600

700

800

900

1,000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

MMSCFD

Gas DemandGas Demand Product UsageProduct Usage

Stab NGL

#5

#4

#3

#2

#10

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

kTPA

Fuel

• Currently, five GSPs are consuming gas of ~ 490 mmscfd• Additional gas volume after the completion of the 3rd pipeline will be primarily

used for petrochemical feedstock.

Petrochemical feedstock

Export

Source : PTT, include LPG purchase from ATC, BST

# 6

Ethane Plant

CAGR (1999-2009) ~ 13%

CAGR (1999-2009) ~ 12%

36

Natural Gas Sales Structure : Stable & Fixed ReturnNatural Gas Sales Structure : Stable & Fixed Return

CustomersCustomersSales Price StructureSales Price Structure

Gas Pool Price

Power Producers (75%)

Supply Margins Pipeline Tariffs

: EGAT (33%)

: IPP (28%)

: SPP (14%)

Average PurchasedGas Price

1.75%

1.75%

9.33%

~ 19.4 Bt/mmbtuReflecting18% IRROE

++ ++

Industrial Users (9%) Charged at the price of alternative fuel oil

GSP (16%) Charged at the same price structure of power producers

Petrochemicals

LPG

Profit-sharing mechanism based on market prices of petrochemicals

Reference to Saudi Aramco’s contract price

• Sales prices with volatility pass-through ensure stable returns• Contract periods ranging between 25-30 years or until depletion of gas fields or

expiration of concession

37

TakeTake--oror--pay Contract : Extra Cash from Makepay Contract : Extra Cash from Make--up Gasup Gas

0

100

200

300

400

500

600

700

800

900

1,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MMSCFD

Make-up Gas

DCQ

Actual gas takenActual gas taken

Advanced paymentAdvanced payment

•• $830mn booked as advanced payment for gas$830mn booked as advanced payment for gasin 2001in 2001

•• Gas taken exceeding DCQ since 2001Gas taken exceeding DCQ since 2001

•• MakeMake--up gas expected to be fully taken by 2009up gas expected to be fully taken by 2009

•• Additional cash contribution from takingAdditional cash contribution from takingmakemake--up gas approx. $100mn per yearup gas approx. $100mn per year

•• During 1H/05, makeDuring 1H/05, make--up gas ~ Bt2,203mup gas ~ Bt2,203m

38

Major Projects UpdateMajor Projects Update

Ban I

Tong

S

B

K

Karnchanaburi

Taluang Kaeng Koi

Wang NoiYadana

Yetagun

Bangpakong

RayongRatchaburi

Tabsake

Kanom

3rd pipeline BenjamasTantawanPlatong

Erawan

PailinBongkot

JDA

Arthit

1st pipeline

2nd pipeline

Power PlantGas Field

Trans Thai-MalaysiaGas Piepline (TTM)

PTTPTT’’s Natural Gas Pipeline Networks Natural Gas Pipeline Network

All projects are proceeding on schedule within budget to capture demand growth

according to PTT’s strategic plan.

● 3rd Offshore Pipeline: EPC contract awarded in 2004: Scheduled to startup by 1H/2006

● Sainoi to N&S BKK Power Plants(capacity ~ 480 mmcfd)Purchasing and construction contracts awarded in 2004-2005

● GSP#6: Conducting feasibility study: Completing basic design by 2005

● Ethane Plant ProjectCompleting basic engineering design and awarding contracts by mid 2005

39

Petrochemical Assets : Strategic GasPetrochemical Assets : Strategic Gas--based Operationsbased Operations

Note : All data as of 30 Jun 2005 (THB/USD = 41.4091) except market cap. (as of 11 Aug 2005)

1,366453874Total

CyclohexaneCompletion: Q2/2006

Capacity: 150,000 TPAAromatics II

Completion: Q2/2008Capacity: PX 565,000 TPA

BZ 297,000 TPA

45343203PX: 495,000BZ: 467,000

ATC(PTT 45.94%)

Ethane CrackerCompletion: Q1/2009

Capacity: Ethylene 1,000,000 TPALDPE 300,000 TPA

LLDPE 400,000 TPA

330134157Ethylene: 461,000Propylene: 127,000

HDPE: 250,000

NPC(PTT 37.99%)

EO/EG #ICompletion: Q2/2006Project cost ~ $210m

Capacity: MEG 220,000 TPAEO 80,000 TPA

Debot Plant #1Completion: Q3/2006Project cost ~ $140m

Capacity: Ethylene 130,000 TPAPropylene 120,000 TPA

583276514Ethylene: 685,000Propylene: 190,000

TOC(PTT 48.97%)

HighlightsMarket Cap.PTT’s Portion

(USD mil)

PTT’sBook Value

(USD mil)

Debt Oustanding

(USD mil)

Key Products(TPA)

Company(PTT ownership)

40

Refining Assets : Integrating Oil OperationsRefining Assets : Integrating Oil Operations

Debt restructuring completed-266326ComplexRFCCU

~ 150,000

SPRC(PTT 36.00%)

1,4697012,167Total

Product Quality ImprovementCompletion: Q4/2007Project cost ~ $250m

173298Hydro Skimming~ 120,000

BCP(PTT 7.88%)

Debt restructuring completed--650ComplexHCU, VBU~ 145,000

RRC(PTT 100.00%)

ExpansionCompletion: Q4/2006Project cost ~ $100m

Capacity: + 50,000 bpd

1,452432893ComplexFCCU, HCU~ 220,000

TOP(PTT 49.54%)

HighlightsMarket Cap.PTT’s Portion

(USD mil)

PTT’sBook Value

(USD mil)

Debt Oustanding

(USD mil)

Refining Process(Capacity in bpd)

Company(PTT ownership)

Note : All data as of 30 Jun 2005 (THB/USD = 41.4091) except market cap. (as of 11 Aug 2005)

41

Refineries in ThailandRefineries in Thailand

TOP (220 TOP (220 kbpdkbpd))(PTT 49.54%)(PTT 49.54%)

BCP (120 BCP (120 kbpdkbpd))(PTT 7.91%)(PTT 7.91%)

RPC (17 RPC (17 kbpdkbpd))

ESSO (145 ESSO (145 kbpdkbpd))

TPI (215 TPI (215 kbpdkbpd))

RRC (145 RRC (145 kbpdkbpd))(PTT 100.00%)(PTT 100.00%)

SPRC (150 SPRC (150 kbpdkbpd))(PTT 36.00%)(PTT 36.00%)

Note : Data as of 30 Jun 2005

Leading position in the market with ~ 31% of ThailandLeading position in the market with ~ 31% of Thailand’’s total refining capacity (PTT equity portion)s total refining capacity (PTT equity portion)

TOP22%

RRC14%

SPRC15%

BCP12%

TPI21%

ESSO14%

RPC2%

● Total refining capacity ~ 1,012 kbpd- PTT Group accounting for 63%

● TOP/RRC/SPRC, complex refineries with potential for upgrade and expansion

● BCP, currently undertaking “Product Quality Improvement Project”

42

Gross Refining MarginsGross Refining Margins

3.56

11.63

5.69

12.07

3.95

7.938.048.50

-2

0

2

4

6

8

10

12

14

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$/bbl

Note : Data using monthly average GRMs of three major refineries (TOP, RRC, and SPRC)

Yr 2003

Yr 2004Q1/05

Q2/05

43

Dividend Policy & Historical PaymentsDividend Policy & Historical Payments

2.50 2.85

4.00

6.75

32.4% 32.6%

28.4%30.1%

25.0%

0

2

4

6

8

10

12

14

2001 2002 2003 2004

Baht/share

0%

5%

10%

15%

20%

25%

30%

35%

% of Net Income

Dividend payment at no less than 25% of Net Income

44

ENDEND

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