3q 2016 analyst presentation - listed...

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This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ materially due to changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in Item 1A of ExxonMobils latest report on Form 10-K or information set forth under "factors affecting future results" on the "investors" page of our website at www.exxonmobil.com). This material is not to be reproduced without the permission of Exxon Mobil Corporation. 3Q 2016 Analyst Presentation November 18, 2016

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Page 1: 3Q 2016 Analyst Presentation - listed companyesso.listedcompany.com/misc/presentation/20161118-esso...2016/11/18  · 3Q 2016 Analyst Presentation November 18, 2016 2 Average September

This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ materially due to changes in technology,

the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in Item 1A of ExxonMobil’s latest report on Form 10-K or information set forth

under "factors affecting future results" on the "investors" page of our website at www.exxonmobil.com). This material is not to be reproduced without the permission of Exxon Mobil Corporation.

3Q 2016Analyst Presentation

November 18, 2016

Page 2: 3Q 2016 Analyst Presentation - listed companyesso.listedcompany.com/misc/presentation/20161118-esso...2016/11/18  · 3Q 2016 Analyst Presentation November 18, 2016 2 Average September

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■ Average September Dubai crude oil price was $43.3/bbl, $3 lower

than the average price in June

■ Industry gross refining margins increased slightly from 2Q16 by

$0.1/bbl to $5.1/bbl

■ Paraxylene prices decreased slightly from the previous quarter

■ Industry demand for fuel products remained strong with year to date

diesel and gasoline growth at 4% and 11%, respectively

■Government expenditure and tourism continue to play important

roles in driving moderate growth in Thailand

Industry and Business Environment

Note: Industry domestic sale source : DOEB

Page 3: 3Q 2016 Analyst Presentation - listed companyesso.listedcompany.com/misc/presentation/20161118-esso...2016/11/18  · 3Q 2016 Analyst Presentation November 18, 2016 2 Average September

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■ Completed 37 days of scheduled refinery maintenance on plan and

within budget

■ Achieved year-to-date earnings of 4.2 billion baht including 3Q16 loss

of 0.4 billion baht, reflecting refinery maintainance activities and a stock

loss impact

■ Reached year-to-date cash generated from operations of 4.5 billion

■ Signed up more than 650,000 members for the Esso SMILES loyalty

card as of September

Headline Results

Page 4: 3Q 2016 Analyst Presentation - listed companyesso.listedcompany.com/misc/presentation/20161118-esso...2016/11/18  · 3Q 2016 Analyst Presentation November 18, 2016 2 Average September

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Margins and Crude Intake

6.3

5.0 5.1

3Q15 2Q16 3Q16

Industry Gross Refining Margin ($/bbl) Crack Spread ($/bbl)

Gross Refining Margin ($/bbl) Crude Intake (KBD)

-0.9

9.4

2.0

3Q15 2Q16 3Q16

135143

108

3Q15 2Q16 3Q16

Note: Industry GRM and Crack Spread Source : Reuters

19.3

14.5

11.613.1

11.6 11.5

3Q15 2Q16 3Q16UGP ADO

Page 5: 3Q 2016 Analyst Presentation - listed companyesso.listedcompany.com/misc/presentation/20161118-esso...2016/11/18  · 3Q 2016 Analyst Presentation November 18, 2016 2 Average September

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Crude Intake by Source Sales Channels

■ Processed higher levels of Middle East and West African crudes reflecting streamlined operations and an increase in asphalt production

■ Continued crude diversification efforts with 10 new challenged crudes introduced this year

■ Achieved greater proportion of domestic retail and commercial sales with a reduction in exports

Crude Source and Sales Channels

9M2015 9M2016

33% 37%

54% 47%

2% 8%11% 8%

Caspian

West African

Far East & SouthEast

Middle East

9M2015 9M2016

53% 54%

38% 40%

9% 6%

Export

Retail

Commercial

Page 6: 3Q 2016 Analyst Presentation - listed companyesso.listedcompany.com/misc/presentation/20161118-esso...2016/11/18  · 3Q 2016 Analyst Presentation November 18, 2016 2 Average September

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Product YieldsProduction by Type

■ Heavy product yields increased, driven by an increase in Asphalt sales

■ Middle distillate and Feedstock product yields decreased, driven by lower product price spreads

Refinery Yields

9M2015 9M2016

18% 17%

9% 9%1% 2%8% 8%

37% 36%

19% 20%

3% 3%5% 5%

LPG

Naphtha

Gasoline

Diesel

Jet/Kerosene

Asphalt

Fuel Oil

Feedstock andother

9M2015 9M2016

10.4% 11.3%

45.4% 44.4%

26.7% 26.9%

17.5% 17.4%

Feedstock

Light

Middle

Heavy

Page 7: 3Q 2016 Analyst Presentation - listed companyesso.listedcompany.com/misc/presentation/20161118-esso...2016/11/18  · 3Q 2016 Analyst Presentation November 18, 2016 2 Average September

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Operating PerformancePx Spreads ($/Ton) Px Production (K Ton / quarter)

■ Paraxylene spreads improved slightly compared to the second quarter and the same period as last year

■ 3Q16 Paraxylene Production was 44 Kton, a decrease of 19 Kton versus 3Q15 as a result of scheduled maintenance

Petrochemical Spreads and Production

220

298 299310

116 118 117 122

3Q15 1Q16 2Q16 3Q16

PX-UGP PX-MX

63

244

44

162

3Q15 FY2015 3Q16 9M2016

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16

2423

8

2013 2014 2015 YTD2016

Marketing Business Update

Service Stations Offering Premium ADO Service Stations Offering E20

Number of New Service Stations Domestic Market Penetration*

* Source : DOEB YTD AUG 2016 (including all domestic sales to end-customers)

67

151

240271

2013 2014 2015 YTD2016

35

327

400420

2013 2014 2015 YTD2016

PTT38.9%

Esso10.9%

BCP10.6%

Shell9.3%

Caltex7.1%

Others23.2%

PTT Esso BCP Shell Caltex Others

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Operations Update

■ Implemented energy improvement and margin enhancement projects

during planned refinery shut-down

■Completed image upgrade for 39 service stations

■Finished terminal facility upgrades to support role-out of new fuels

formula

■ Implemented Asphalt heating tank capability to facilitate incremental

Asphalt sales volumes

■Enhanced Terminal Automation system (TAS) to improve efficiency of

product distribution and terminal blending

Page 10: 3Q 2016 Analyst Presentation - listed companyesso.listedcompany.com/misc/presentation/20161118-esso...2016/11/18  · 3Q 2016 Analyst Presentation November 18, 2016 2 Average September

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3.9

(0.1)

3.4

6.7

2Q16 3Q16 9M2015 9M2016

Financial Performance

Sales Revenue

EBITDA

4034

130

110

2Q16 3Q16 9M2015 9M2016

Cash Flow From Operations

2.8

(0.4)

1.2

4.2

2Q16 3Q16 9M2015 9M2016

Net Profit/Loss

Note: All units are in Billion Baht

2.8

(0.8)

2.7

4.5

2Q16 3Q16 9M2015 9M2016

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Financial PositionBalance Sheet Indicators

37 35

1 14 3

14 16

YE2015 QE2016

Inventory Receivables

Other current Asset Non-current Assets

14 18

29 25

11 10

3 3

YE2015 QE2016

Shareholder's Equity Debt

Payables Others

Cash Flow

D/E 2.1 D/E 1.4

6.9

4.5

(0.8) (0.3)

(6.3)

(4.3)

YE2015 QE2016

Cash flow from operations

Cash flow used in investing

Cash flow used in financing

Note: All units are in Billion Baht

■ Assets increased slightly with higher inventory

values offset by utilization of the tax loss carry

forward

■ Debt declined by 4 billion baht, with the

repayment of short-term and long-term loans

■ Debt to equity improved with lower debt levels

and current year profit

■ Cash flow from operations reached 4.5 billion

baht with proceeds mainly used to reduce debt

■ Cash flow used in investing reflects capital

investments for maintenance and improvement

projects offset by dividends from an associate

■ Cash flow used in financing reflects repayment

of debt

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Summary

■Continue to focus on safety, reliability, and operational excellence

■ Investing in energy efficiency and margin enhancement projects

■Optimizing the retail network and premium product offerings with focus

on fuel quality, reliable supply, and competitive pricing

■Leveraging strong financial rating while maintaining capital and cost

discipline