(Translation) Ref. No. 01-0329/2014 May 7, 2014 Subject: Submission of the Interim Financial Statements for the three-month period ended March 31, 2014 and the Management's Discussion and Analysis (MD&A) of PTT Global Chemical Public Company Limited and its Subsidiaries To: President, The Stock Exchange of Thailand Attachment: 1. A copy of the Interim Financial Statements of PTT Global Chemical Public Company Limited (the "Company") and its Subsidiaries for the three-month period ended March 31, 2014 and reviewed report of certified public accountant, with a copy of English translation 2. Company's and its Subsidiaries performance report (Form F45-3) 3. Management's Discussion and Analysis (MD&A) and operating results of the Company and its Subsidiaries for the three-month period ended March 31, 2014 We are pleased to submit the Interim Financial Statements for the three-month period ended March 31, 2014 of the Company and its Subsidiaries, which were audited by our external auditor, KPMG Phoomchai Audit Ltd., and were reviewed by the Company's Audit Committee (details as per Attachment 1 and 2) and hereby prepared management's discussion and analysis (details as per Attachment 3). In 1Q/2014, PTT Global Chemicals Public Company Limited ("the Company") reported net profit of Baht 6,296 million (Baht 1.40 earnings per share), decreased 48% from Baht 12,075 million (Baht 2.68 earnings per share) in 1Q/2013, and decreased 15% from Baht 7,421 million (Baht 1.65 earnings per share) in 4Q/2013. Table: Performance Summary (Unit: MB) 1Q/2013 4Q/2013 1Q/2014 YoY QoQ % + /(-) % + /(-) Sales Revenue 141,309 154,599 146,366 4% -5% EBITDA 16,419 14,089 10,999 -33% -22% EBITDA Margin (%) 12% 9% 8% -35% -18% Net Profit 12,075 7,421 6,296 -48% -15% EPS (Baht/Share) 2.68 1.65 1.40 -48% -15% Adjusted EBITDA* 17,062 12,763 11,574 -32% -9% Adjusted EBITDA Margin (%) 12% 8% 8% -35% -4% Note: * Adjusted EBITDA refers to EBITDA excluding impact of inventory value (Inventory and NRV) The Company's operation result for 1Q/2014 was attributed to both internal and external factors which declined compared to 1Q/2013 and 4Q/2013. This was mainly the result of softened performance of Aromatics business of which the price of its major product, paraxylene significantly dropped, as well as the performance of Olefins and Olefins derivatives Business that was affected by maintenance shutdown of 2 Olefins plants, whereas the performance of Refinery Business in 1Q/2014 improved as a result of the increase in petroleum product prices during the quarter. Subsequently, the Company reported EBITDA of Baht 10,999 million decreasing 33% compared to 1Q/2013 and 22% compared 4Q/2013, while the Adjusted EBITDA Margin of this quarter was at 8%. The performance of major business group is summarized as follows: Dubai Crude price continuously declined from the end of 2013 and averaged at 104.45 USD/bbl in 1Q/2014, while most petroleum product prices rose which resulted in improving crack spreads. In this quarter, the Company refinery business had Market GRM of 4.48 USD/bbl, increased from 4.37 USD/bbl in 1Q/2013, and from 3.42 USD/bbl in 4Q/2013. The CDU utilization rate in this quarter was 101%. The performance of Aromatics business in 1Q/2014 as the average P2F was significantly declined to 152 USD/ton BTX, down from 1Q/2013 by 58% and from 4Q/2013 by 25% attributed to oversupply situation of paraxylene from new capacity additions in the quarter while the demand growth was behind with additional supply. As a result, paraxylene-condensate spread dropped to 387 USD/ton, or down 42% compared to 1Q/2013, and down 23% compared to 4Q/2013. In 1Q/2014, the performance of Olefins and Olefins derivatives also declined, and Adjusted EBITDA decreased 21% compared 1Q/2013 and 5% compared to 4Q/2013, whereas the price of HDPE, the key product rose by 5% Y-o-Y and 1% Q-o-Q. The major cause of the decline was planned maintenance shutdown of Olefins I-1 plant and some Olefins derivative plants, and also the unplanned shutdown of Olefins I-4/1 plant which resulted in the overall utilization rate of Olefins plants down to 77% in this quarter. In addition, the Company reported crude oil stock loss and NRV of Baht 575 million in 1Q/2014 due to the falling crude oil prices during the quarter. In this quarter, the Company reported gain on foreign exchange of Baht 602 million from the appreciating Baht currency compared to that of the end of 2013. Summary of the Company's major events that had significant impact on the financial statements in 1Q/2013, 4Q/2013 and 1Q/2014 are as follows: - On May 2, 2013, the Company acquired all shares of PTT Phenol Company Limited (PPCL) from PTT Public Company Limited (PTT) which resulted in the Company's shareholding in PPCL to increase from 60% to 100%, and reduce the non-controlling interest of PPCL from 40% to 0%. - On December 23, 2013, the Company exercised right to purchase Myriant Corporation's shares from existing shareholders, and Myriant purchased shares from a group of existing shareholders on January 2, 2014. As a result, the Company's shareholding in Myriant changed from 47.18% to 84.21%, and Myriant has changed its status from the Company's affiliate to subsidiary. This share purchase will enable the Company to support business management of Myriant in order to achieve transformation into its Biotechnology Research and Development Center as well as to strengthen its fundamentals for commercial production in the future. As of the end of 1Q/2014, the Company's shareholding in Myriant was 84.18% due to the exercise of employee warrants. ? In addition, the Company had major events during 1Q/2014 and adjacent periods as follows: - On January 2, 2014, Myriant, a subsidiary of the Company, purchased shares from a group of existing shareholders of 3,406,569 shares and reduced its issued and outstanding capital by cancellation of those purchased shares. As a result, the Company's shareholding in Myriant changed to 84.21%. As of the end of 1Q/2014, the Company's shareholding in Myriant was 84.18% due to the exercise of employee warrants. - On January 13, 2014, there were the political demonstrations in many areas of Bangkok as well as Ladpraow Intersection, and around the Ministry of Energy building which was in the same area of the Company's headoffice. This caused the Company's staff being unable to work in the headoffice as usual, so the Company activated the Business Continuity Management program to enable the Company's staff to work from other places, and the Company's business operation to run as normal. - On February 18, 2014, the Company shut down Olefins Plant I-4/1 (production Capacity: ethylene 515,000 tons/year, and propylene 310,000 tons/year) in order to repair Quench Oil tower which took 23 days in repairing. At present, the Plant has resumed its operation as normal. - On April 8, 2014, the Company held the 2014 Annual General Meeting of Shareholders at BITEC, and the meeting approved the dividend distribution for the year 2013 operating performance at the rate of Baht 3.40 per share totaling Baht 15,330 million or 46% payout ratio. Previously, the Company distributed the interim dividend of Baht 1.62 per share amounting Baht 7,305 million, and distributed the final dividend of Baht 1.70 per share amounting Baht 7,665 million on April 25, 2014. Please be informed accordingly. Sincerely yours, (Bowon Vongsinudom) President and CEO Corporate Finance and Investor Relations Tel: 02 265 8400 ext. 8421, 8712, 8713, 8714, 8327 ______________________________________________________________________ This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand has no responsibility for the correctness and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.