15th August 2019

Tipco Asphalt Public Company Limited (TASCO)

3-2019 Analyst Meeting(Q2 2019 Operational Results)

Disclaimer

This presentation material has been prepared solely for informational purposes only. TASCO is furnishing it solelyfor use by prospective investors / analysts in the proposed event. TASCO makes no representations or warrantiesas to the accuracy or completeness of such information. By accepting this material each recipient agrees thatTASCO shall not have any liability for any representations (express or implied) contained in, or for any omissionsfrom this presentation.

The information contained herein does not purport to be all-inclusive or to contain all of the information that maybe material to the recipient’s decision. Each recipient of the information and data contained herein should performits own independent investigation and analysis of the transaction and the creditworthiness of TASCO. Reference inthis Disclaimer to this shall include references to the Appendices (if any) hereto.

Agenda

Q2 2019 Financial Performance

Q2 2019 Highlights

H2 2019 Outlook

Q&A

1

2

3

4

Sales & Services Revenue & Sales VolumeSales & Services RevenueUnit: Mil. THB

0.40 0.650.32 0.34 0.38 0.49

1.54

Q1 Q2 Q3 Q4 Year

2019 2018

7,091 10,784 5,263 5,766 7,032 9,571

27,632

Q1 Q2 Q3 Q4 Year

2019 2018

Sales VolumeUnit: Mil. Ton

• Sales and services stood at Baht 10,783.9 million, reflecting anincrease of 87.02% from the same period of last year and 52%increased from Q1 2019 attributed to significant increased in salevolume

• 91% increase in sales volume from the same period of last yearas a result of continuous and increased crude supply togetherwith high production reliability at our refinery in Q2 2019

Operating Gross Profit

1,168 916 607 518

808 431

2,364

Q1 Q2 Q3 Q4 Year

2019 2018

Operating Gross ProfitUnit: Mil. THB

Gross profit margin (%)

Q1 Q2 Q3 Q4 FY

2019 16.5% 8.5%

2018 11.5% 9.0% 11.5% 4.5% 8.6%

• Gross profit of Q2 2019 was satisfactory given that the marketprices fluctuated within range bound. In addition, the Companyhas charged out to the Profit and Loss a hedging loss of Baht35.6 million in this quarter which did not qualify for hedgeaccounting and also recorded a hedging gain of Baht 112.6million as Other Comprehensive Income (OCI).

• Cost of sales and services in Q2 2019 stood at Baht 9,822.4million or 91.08% (87.73% in corresponding quarter in 2018) ofsales and services before the allowance for diminution in valueof inventory and hedging

• The apparent reduction of gross margin was mainly due tohigher gross margin in the corresponding quarter of 2018therein the sales volume was low and in an uptrend marketcondition

474 1,195

162 588 538

1,169

2,457

Q1 Q2 Q3 Q4 Year

2019 2018

EBITDA & Net Profit

EBITDAUnit: Mil. THB

Net Profit After TaxUnit: Mil. THB

718 1,053

304 344 6 132 564

Q1 Q2 Q3 Q4 Year

2019 2018

• The Group’s cashflow generated from operations excluding fire insurance claim stood at Baht 744.7 million increased by 57% over Q1 2019

• The Group’s cashflow generated from operations including fire insurance claim stood at Baht 1,195 million increased by 103% over Q2 2018

• The Net Profit After Tax of Baht 1,052.9 million for the Q2 2019 represented 206% increased in corresponding quarter of 2018

0.68 1.00 1.13

0.02 0.01 0.004

Q2 2018 Q1 2019 Q2 2019

Total liabilities/Total equity LT debt/Total equity

Debt to Equity Ratio

Debt/Equity Ratio

• The Group’s consolidated debt to equity ratio (D/E ratio) reached 1.13 comparing to 0.68 in corresponding period of 2018 due to increase in working capital financing for higher crude inventory.

Key Ratios and Historical Dividend

7.7

15.412.3 11.2

8.14.5

Q1 Q2 Q3 Q4

2019 2018

Return on Equity1/

Unit: %

6.610.39.1 8.5

6.2 4.5

Q1 Q2 Q3 Q4

2019 2018

Return on Asset2/

Unit: %

Historical DividendUnit: Baht per share

2/ Return is based on sum of last 12 months net profit Return is based on profit before interest and tax

0.13 0.00 0.10 0.20

0.90 0.901.20

0.30 0.40

2011 2012 2013 2014 2015 2016 2017 2018 2019

Payout ratio

1/ Return is based on sum of last 12 months net profit

Dividend PolicyThe Company has a policy to pay dividends of not less than 60% of its consolidated net profit of each fiscal year.

The Company is pleased to announce an interim dividend of 0.40 Baht/share for the year 2019

27% 45% 74% 84% 36%

Interim dividend

Expense relating to fire incident and insurance claim

Loss/(Gain) from the fire incident (Unit: Mil. THB)

2018 Q1 2019 Q2 2019

Damaged Assets 289.92/ - (378)3/

Related expenses to the incident1/ 68.2 143 (44.5)

Total 358.1 143 (422.5)

• During the six-month period ended 30 June 2019, The refinery incurred additional operating expense of Baht 170 million in operating expense for crude storage, logistic handling and other related expenses, attributable to the fire incident. Some of these expenses will be recurring until the damaged crude tanks are back in service

• In May 2019, the refinery received a partial payment of insurance claim in connection with damaged assets and related expenses to MYR 60 million or approximately Baht 450 million

1/ include cost of floating storage unit rental, demurrage, tanks repair and other expenses2/ carrying value of damaged assets-written off to Profit & Lost statement3/ partial insurance claim based on replacement cost of damaged assets

Status of crude storage of KBC refinery

2 repaired tanks 2 damaged tanks

Floating Storage Unit Refinery crude storage

• 2 repaired tanks are scheduled to be done in Q4 2019• 2 damaged tanks are scheduled to done in Q1 2020

• Rental period last during mid-February 2019 to February 2020

Q2 2019 - Highlights

• 4 crude cargos received during the Q2 2019• Total crude receiving of 8 cargos in first half of 2019 well exceeded target

Crude

• Refinery was processing at high utilization rate• New construction and repair of crude storage tanks are underway according to plan

Refinery

Q2 2019 - Highlights

Domestic Market

• Q2 2019 sale volume was benefiting from delay of budget disbursement in Q4 2018

• Entering into low working season

International Market

• Strong demand in China, Malaysia and Vietnam markets, especially in China market

Asphalt Selling Price vs. Ice Brent PriceUnit: USD/barrel

80.1

70.1

60.0 57.3

45.8

38.0 37.4 38.5

53.845.3 48.2

57.962.2 63.6

71.2

63.3

65.371.4

55.263.5

51.2

44.734.7

46.9 47.1 51.1 54.7 50.9 52.2

61.567.2

74.9 76.0

68.1

63.8 68.3

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Avg. asphalt selling price Avg. Ice Brent price

Highlights : Asphalt Volume & Asphalt Revenue Structure

Main International Markets

China

Vietnam

Australia

Asphalt sales volume by market Unit: %

Asphalt Revenue (Exc. Non asphalt & service income)Unit: %

32% 45% 20%

68% 55% 80%

Q2 2018 Q1 2019 Q2 2019

Domestic International

28% 35% 17%

72% 65% 83%

Q2 2018 Q1 2019 Q1 2019

Domestic International

Indonesia

Malaysia

0.400.34 0.65

Q2 2018 Q1 2019 Q2 2019

Million tons

4.61 5.97 9.21Billion Baht

Q2 2018 Q1 2019 Q2 2019

H2 2019 Outlook – Crude & Refinery

Refinery

Crude

• Existing inventory in-hand is adequate to maintain refinery production until Q1 2020

• Target receiving of 15 crude cargos in 2019

• 2 repaired tanks will be resumed operation in Q4 2019• Renewal of Floating Storage Unit until Feb 2020• 2 new tanks construction will be scheduled to be completed in Q1 2020

H2 2019 Outlook – Domestic & International market

Domestic Market

International Market

• Benefit from consistence crude supply

• Peak season in Indonesia and Vietnam

• 2020 fiscal government budget delay from Q4 2019 to Q1 2020

• Expected stimulus budget from new government to support GDP growth

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