PTG’s Opportunity Day 3Q2019

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AGENDA

Highlights

Industry Outlook

Business Overview

Financial Performance

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HighlightsHighlights2019 ASEAN Business Awards

Beat Target

Sales Volume 9M19 +20.3%

EBITDA growth +55.4%

No. 1 in B20 Sales

Volume

Max Rewards

Application

Received 3 awards

B20 Sales Volume 3Q19

32.52%

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2019 ASEAN Business Awards

The Winner under the category of 17 Priority Integration Sectors: Energy (Large-Tier)

Outstanding Business Award in Human Resource Development or The Country Winner, Skills Development (Large-Tier)

The Outstanding Business Award for Sustainable Society or The Country Winner, Sustainable Social Enterprise (Large-Tier)

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2

3

4

5

Outstanding Investor Relations Awards

Thailand Sustainability Investment (THSI) for 2 consecutive years

Industry Outlook

Industry Outlook2

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29

30

31

32

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34

0

10

20

30

40

50

60

70

80

90

WTI H-diesel price Fx

Movement of WTI, Exchange rate and HSD Retail Price

65.0 – 74.2

32.6 – 33.6 30.8 – 32.2

30 THB Diesel price cap announced in late May 18

To hit at THB 30/liter WTI was at $75/barrel and the exchange rate was at THB32.5/$ when the domestic diesel price hit THB30 cap.

Fx (THB/USD)WTI (USD/BBL)HSD Diesel Price (THB/L)

51.1 – 71.2 51.1 – 62.9

30.6 – 31.1

Source: WTI crude oil macro trend, EPPO and Company data

7

45

50

55

60

65

70

75

0

0.50.4

-0.4

0 0

0.4

-0.3

-0.6

-0.4

0

0.4 0.40.5

-0.3-0.4

0

-0.4

0.5

-0.4

0.40.3

0

0.3

-0.4

Changes of Diesel Retail Price

Month No. of time price increase

No. of time price decrease

Apr 3 1

May 1 3

Jun 2 4

Total 6 8

Diesel Price Adjustment 2Q/19 Diesel Price Adjustment 3Q/19

Month No. of time price increase

No. of time price decrease

Jul 1 2

Aug 1 3

Sep 3 2

Total 5 7 8

Unit: Baht per liter

0.3

-0.3-0.3

-0.3

-0.4

-0.3

Source: WTI crude oil macro trend, EPPO and Company data

WTIChanges of Diesel

5,383 5,958 5,582 17,216 17,545

2,706 2,821 2,807

8,095 8,383

8,088 8,778 8,389

25,310 25,929

3Q18 2Q19 3Q19 9M18 9M19

Diesel Mogas

Total Consumption Retail Consumption

Unit: ML

3,793 4,273 4,008 11,839 12,372

2,247 2,426 2,409

6,788 7,198

6,040 6,699 6,417

18,627 19,570

3Q18 2Q19 3Q19 9M18 9M19

Diesel Mogas

Unit: ML

Thailand Oil Consumption

-4.4% QoQ+3.7% YoY

+2.4% YoY

-4.2% QoQ+6.2% YoY

+5.1% YoY

Thailand oil consumption through

station channel declined from 2Q19

due to the seasonal factors.

The consumption of diesel in 3Q19

dropped 6.2% QoQ, while mogas

decreased only 0.7% QoQ.

The slow down in world and Thailand’s

economies resulted in the low growth

in oil consumption.

Source: Department of Energy Business

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1,860 1,721 1,771

5,572 5,275

3Q18 2Q19 3Q19 9M18 9M19

534 482 467

1,640 1,440

3Q18 2Q19 3Q19 9M18 9M19

LPG Auto ConsumptionAll Channel Consumption

Unit: MLUnit: ML

Thailand LPG Consumption

+2.9% QoQ-4.8% YoY

-5.3% YoY

-3.1% QoQ-12.5% YoY

-12.2% YoY

The total consumption of LPG dropped

YoY mainly due to the decline in auto LPG

consumption.

LPG consumption in 3Q19 consisted of

26.4% of auto LPG, 56.5% of household

LPG, and 17.1% of industrial LPG

LPG auto consumption continued to

dropped as consumers switch to oil fuel.

As of 2Q19, there was 1,969 auto LPG

station decreased 73 station from 2Q18.

Source: Department of Energy Business

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Business Overview3 Business Overview

Sales Volume by Product

Sales Volume by ChannelUnit: ML

896 1,120 1,064

2,7113,229

39 82 67

150213

935 1202 1131

2,861

3,442

3Q18 2Q19 3Q19 9M18 9M19

Retails Wholesale

-5.9% QoQ

+21.0% YoY

+20.3% YoY

647 871 798

2,042 2,466288

331 333

820976

3Q18 2Q19 3Q19 9M18 9M19

Diesel Mogas

Unit: ML

Retail

94%

Wholesale

6%

3Q19

Diesel

71%

Mogas

29%

3Q19

Retail

Growth -5.0% QoQ+18.8% YoY

in 3Q19 Wholesale

Growth -18.3% QoQ+71.8% YoY

in 3Q19

Diesel in 3Q19 Mogas in 3Q19

Growth -8.4% QoQ+23.3% YoY

Growth +0.6% QoQ+15.6% YoY

The decrease in oil sales volume QoQ

was from the drop of diesel sales

volume as PTG’s main sales proportion

is diesel.-5.9% QoQ

+21.0% YoY

+20.3% YoY

Oil sales volume growth beat PTG’s

target at 16 – 20% because of the

station expansion and growth in same

store sales.

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Diesel Product

The availability of

biodiesel B10 as the

primary diesel from January 2020 onward, B10

will be replacing B7 in order to

increase the use of crude palm

oil and address Thailand's environmental problems.

B7 B10

1st

Oct 191st

Mar 201st

Jan 201st

Dec 19

Requested for

cooperation in adding B10 in gas station

Announce for B100

specification and quality

All refineries are

required to produce B10

B10 becomes

primary diesel in all gas stations

Timeline

B20 retail price is 3 baht

lower than B7 (adjusted from 5 baht)

B10 retail price is 2 baht lower than B7.

The primary diesel

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2

Subsidization

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*B7 and B20 become the optional fuel.

5.21% 25.27% 35.35% 36.48% 34.61% 33.15% 30.56%6.621.4

50.1

76.3

111.9

143.4165.0

-

50.00

100.00

150.00

200.00

250.00

Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19

PTG others

4.61%34.48%

32.52%7.4

147.8

420.3

-50

50

150

250

350

450

1Q19 2Q19 3Q19

PTG others

Unit: ML

713

Outperformed B20 Sales Volume

32.5%

31.6%

12.0%

23.8%

PTG others

3Q19

Unit: ML

14

As of September 2019, there are

713 PT service stations that

provided B20 fuel.

PTG ranked 1st in 3Q19 market

share of B20 at 32.5%.

station

Source: Department of Energy Business and Company Data

All Channel Market Share

36.9%

15.0%13.3%

11.6%

11.2%

7.0%

3.7%1.4%

3Q18

38.1%

14.1%13.3%

13.0%

11.1%

6.2%

2.7%1.5%

3Q19

36.4%

15.1%13.2%

11.8%

9.8%

7.2%

5.0%1.5%

3Q17

Total Consumption

8,109 ML

Total Consumption

8,088 ML

Total Consumption

8,389 ML

Source: Department of Energy Business & the Company data15

Retail Channel Market Share

38.5%

15.6%15.4%

11.2%

11.7%

3.9%1.6% 2.1%

3Q1940.4%

15.0%12.4%

13.2%

12.5%

4.5%1.8%

0.2%

3Q17

39.2%

15.5%14.1%

13.0%

12.2%

4.2%1.7%

0.1%

3Q18

Total Consumption

6,198 ML

Total Consumption

6,355 ML

Total Consumption

6,847 ML

Source: Department of Energy Business & the Company data16

Retail Channel Market Share

38.6%

15.5%

15.3%

11.7%

11.5%

3.9%1.6% 1.9%

9M1940.9%

15.0%12.5%

12.8%

12.3%

4.6%1.7%

0.1%

9M17

40.0%

15.4%14.0%

12.3%

12.3%

4.3%1.7%

0.2%

9M18

Total Consumption

18,699 ML

Total Consumption

19,421 ML

Total Consumption

20,791 ML

Source: Department of Energy Business & the Company data17

LPG Sales Volume

27 32 34 69 97

3Q18 2Q19 3Q19 9M18 9M19

+6.6% QoQ

+29.3% YoY

Unit: ML

LPG Sales Volume Growth

Same Store Sales of 3Q19 -3.9% YoY

Station expansion 39% YoY

40.0%

PTG’s LPG sales volume in 3Q19 increased

29.3% YoY and 6.6% QoQ.

The growth of sales volume was from the

station expansion, services standard, and

PT Max Card loyalty program.

+40.0% YoY

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YoY

21.5%

18.0%

15.1%9.4%

6.2%

2.7%

27.2%

3Q17

Auto LPG Market Share

Total Consumption

603 ML

Total Consumption

533 ML

Total Consumption

482 ML

21.5%

19.4%

16.1%

10.5%

9.7%

7.4%

15.5%

3Q19

18.4%

16.9%

16.9%10.5%

9.3%

5.0%

23.1%

3Q18

Source: Department of Energy Business & the Company data19

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Stand AloneMixed

1031,555

COCO86%

DODO

261

14%

1,980stations

Number of Service Stations

20

Number of Networks

236

89 51

178

16

10 11

21

PT Max Card member

11.9Million members

591Touch Points

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Palm Complex Update

Capacity

CPO RBDPO Olein B100

Palm Oil Mill plant

Refinery Dry fraction B100 plant

100% 100% 100% 92-95%

PRODUCT OUTPUT

B7 B10PPP

standard

Below0.7%

Below 0.4%

Below 0.1%

300 ppmBelow

200 ppmAverage 150 ppm

Monoglyceride

Water Content

Max Rewards Application

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Max Rewards Application OLD VERSION

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Max Rewards Application NEW VERSION

SALES VOLUME EBITDA+16-20%O I L

L P G +55-60%+40-50%

2019 TARGETS

NETWORKS

Core Business

Non-oil Business

New Business

3,000 to

3,500 MB

500 MB

500 MB

BUDGET PLAN

OIL 2,000

NON-OIL 630*

branches

*Adjusted

More than

connect dot to dot

“”

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4 Financial Performance

Financial Performance

1,7222,529 2,333

5,444

7,399

6.40%

7.90% 8.20%

6.90%

8.30%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

3Q18 2Q19 3Q19 9M18 9M19

Gross Profit GPM

26,745 31,844 28,485

78,58688,983

3Q18 2Q19 3Q19 9M18 9M19

-10.5% QoQ+6.5% YoY

Revenue

Oil

96%

Non-oil* 4%

3Q19

Gross Profit

Oil

87.1%

CVS &

others

3.6%

LPG

4.2% F&B

5.1%

3Q19

* Non-oil includes LPG, Logistics, Max Mart, Food and Beverages, and Lubricant

-7.7% QoQ+35.5% YoY

Revenue increased due to the growth of oil

sales volume from last year.

Non-oil revenue proportion slightly increased to

3.8% because of the non-oil revenue growth of

27.3% YoY.

Marketing margin returned to normal since

there was no pressure from crude oil price

Non-oil gross profit accounted for 12.9% of

total gross profit.

+13.2% YoY +35.9% YoY

Unit: Baht Mil l ion Unit: Baht Mil l ion

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EBITDAUnit: Baht Mil l ion

SG&A still grew at 16.2% YoY and 1.4% QoQ

due to the continuous expansion of oil and

non-oil business. PTG beat EBITDA target growth of 40 – 50%.

Net ProfitUnit: Baht Mil l ion

7161,359 1,168

2,549

3,962

3.30%4.30% 4.10%

3.20%

4.50%

-5.00%

-3.00%

-1.00%

1.00%

3.00%

5.00%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

3Q18 2Q19 3Q19 9M18 9M19

EBITDA EBITDA margin

1426

258448

1,204

0.00%1.30% 0.90% 0.60% 1.40%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

0

200

400

600

800

1,000

1,200

1,400

3Q18 2Q19 3Q19 9M18 9M19

NI NI margin

Share profit from investments in joint-ventures

and associates rose mainly from the increase in

profit of PPPGC (Palm Complex) and AMA.

Finance cost grew 12.9% YoY due to the increase

in short-term loan to support the growth of oil

sales volume.

-3.4% QoQ+23,393.4% YoY

-14.0% QoQ+63.4% YoY

+55.4% YoY +168.8% YoY

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Profitability Leverage Ratio

0.90%

8.30%5.00%

0.00%

29.90%

17.70%

3Q18 2Q19 3Q19

ROA ROE

1.78

1.65

1.57

3Q18 2Q19 3Q19

Interest Bearing Debt to Equity

Profitability recovered as the Company’s profit

increased from 3Q18.

However, PTG is building the non-oil businesses

to stabilize the profitability.

The leverage ratio slightly dropped from 2Q19

due to debt repayment and the matured of

debentures.

PTG effectively manages its interest bearing

debt level to be lower than 2 times.

(x)

30

Operating Cash Cycle Cash Flow

Unit: Baht Mil l ion

7.86 6.66 6.01

0.59 0.84 0.90

16.05 16.5413.83

(7.60)(9.04)

(6.92)

2017 2018 3Q19

Day in Inventory Avg. Collection Period

Avg. Payment Period Cash Cycle

PTG is in cash business with negative operating

cash cycle of 6.92 days.

2017 2018

However, the Company applies focus strategy

in business investment corresponding with the

operating cash flow.

PTG maintained the investment budget at 4,000-4,500 million baht..

Unit: Day

31

Short-term borrowing escalated to finance the

growth in oil sales volume.

PTG’s long-term borrowing increased to support

the business expansion.

PTG managed its leverage ratio by balancing

investment budget with operating cash flow.

Assets Liabilities and Equity

Unit: Baht Mil l ion

1,989 1,758 1,683

2,223 2,207 2,174

9,14311,405 11,791

2,311

2,874 3,038

17,985

20,940 21,310

2017 2018 3Q19Others Prepaid Leasehold Right & Rental

PP&E and Investment Property Investment

Inventories Cash and Cash Equivalents

5,119 5,476 6,354

2,120 1,400 2,805

4,520 6,335 4,637

5,9805,792

6,196

17,985

20,940 21,310

2017 2018 3Q19

Other Liabilities L-T Borrowing

Trade and Other Payables S-T Borrowing

Equity

Unit: Baht Mil l ion

The total assets increased mainly from the

business expansion of oil and non-oil businesses.

However, cash and cash equivalents dropped

from last year due to debt repayment and

redemption of matured debentures.

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