1. Good Corporate Governance of PTT Group Mr. Wisarn Chawalitanon
Acting President, PTT Philippines Corporation
At the 1st Philippine International Corporate Governance Forum 2012
August 15, 2012
Marriott Hotel, Resort World, Pasay City, Metro Manila, Philippines

2. Agenda
Overview of PTT Group
Good Corporate Governance of PTT 2

3. PTT is a fully-integrated oil and gas company and SOE3

4. PTT GROUP ALREADY HAS SIGNIFICANT MARKET PRESENCE IN INDOCHINA
Houakhong Trading
27 oil Stations
6 oil depots
Sales volume: 4 MML/Mo.
(8.24 % mkt share)
Border trade: Mogas, Gasoil,
Lube, Fuel Oil, Bitumen
Border trade to Southern
Yunnan: Mogas, Gasoil, Jet
FST office (JV): jet fuel supply at HK airport
Rep. office at Guangzhou
(PTT Group)
Southern China
PTT Philippines Corporation
51 Retail Gas Stations
3 Oil Depots (Subic, Clark and Cebu)
Engage in Retail, Commercial,
Distributor & Aviation business
Sales volume : 60 MML/Mo. (3% Mkt. share)
Vietnam
Laos
Myanmar
Philippines
Border trade: Mogas, Gasoil
Sell Jet A-1 via vessel
Lube sales via dealer
E&P: rep. office & operation
Thailand
VLPG
- fill & sell LPG (45%)
- 1 LPG Depot
Lube Sales via agent
Solvent business (ThaiOil)
PTTPM rep. office
E&P operation
Cambodia
Port Klang depot: 216 KT
K1 floating: capacity = 283 KT
Share in Asian Petroleum Hub (APH)
KPL depot: 300 Tons
Oleochemical business (PTTCH’s JV)
PTT Cambodia
- 6 oil stations (PTT Cambodia)
- 3 oil depots
- 2 into-plane service (60% share)
Oil marketing: 15 MML/Mo. (15% Mkt . Share)
Border trade: Mogas, Gasoil, Lube
Malaysia
Indonesia
Singapore
PTTT office
PTTCH Inter office
Trading Gasoil
PTTGE
Coal business
Data as of April 2010 4 4

5. PTT Group is a driving force of Thailand’s economy
Highest market cap in SET
State remittance
Market Cap (million baht) %
PTT
11%
SET
PTT Group
PTT
PTTEP
PTTGC
TOP
IRPC
BCP
อื่นๆ
9,239,435
2,183,268
982,567
585,977
328,985
146,882
96,450
30,017
12,390
100.0
23.6
10.6
6.4
3.6
1.6
1.0
0.3
0.1
PTT Group
13%
Others
76%
As of 16 Feb 2012
GDP contribution
Shareholding structure
unit : billion baht
Social security
(1%)
(78% of GDP)
Public
shareholders
Vayupak Fund 1
(15%)
Thai
(16%)
(18% of GDP)
foreign
(17%)
Total state shareholding 67%
(8% of GDP)
Ministry of Finance
(51%)
GDP ’2011*
SET
PTT Group
PTT
*GDP estimated by NESDB as of 21 Nov. 2011 5

6. PTT Group Vision “Thai Premier Multinational Energy Company”
PTT Group Mission
HPO
To conduct integrated energy and petrochemical business as the nation's energy company whose mission is to equally respond to all stakeholders through the following aspects:
High Performance Organization
To the Country
Ensuring long-term energy security by providing sufficient high quality energy supply at fair prices to support economic growth.
To Society and Community
Being a good corporate citizen to protect environment and improve quality of life of the communities
To Shareholders
Conducting a profitable business leading to sustainable growth while providing optimum returns to stakeholders
To Customers
Ensuring customer satisfaction by delivering high quality products and services at fair prices
To Business partners
Conducting business with partners at fair and arm’s length basis promoting synergy and coordination, creating capability and efficiency in long-term business partnership
To Employees
Providing supporting capability building in professional conduct, ensuring employee’s wellbeing to be comparable to other leading companies
Economic
Sustainable Growth Strategy
Environ-
mental
Social CG
CSR
Corporate
Governance
Corporate Social
Responsibility
Dow Jones
Sustainability
Indexes
“Top quartile performance”
Big
Strong
Long
PTT Corporate Values
Synergy
Innovation
Trust & respect
Performance Excellence
Responsibility for Society
Integrity & ethics
“smart”
“good”
Aspiration : Becoming a Global Fortune 100 Company by 2020
With Top Quartile Performance and on DJSI by 2013 6

7. HPO CSR CG Sustainable growth strategy Sustainable Growth Strategy
High
Performance
Organization
Economic
Sustainable Growth
Strategy
Social
Environmental CG
Corporate
Governance
CSR
Corporate
Social
Responsibility 7

8. 14 non-executive directors 10 independent directors
Board of Directors is comprised of more than half of independent directors
A total of 15 directors
(as of August 2012)
14 non-executive directors
1 executive director*
10 independent directors
5 directors
* Director and Secretary to the Board : President &CEO
“Stakeholders are ensured that directors can independently perform their duties with appropriate balance.” 8

9. Good corporate governance structure9

10. VS Challenges of PTT’s Board of Directors in supervising PTT
as a state-owned enterprise and a listed company
From balancing between a state-owned enterprise and a listed company
SOE roles
Listed company roles
Observe government policies
Relieve energy price burden for consumers VS
Create benefits for shareholders
Grow business
shareholders
suppliers
employees
customers
country
Public/society/community
การเป็นคณะกรรมการ ปตท. มีความท้าทายเป็นอย่างยิ่ง โดยต้องกำกับดูแล ปตท. ทั้งในฐานะรัฐวิสาหกิจที่ต้องดำเนินงานตามนโยบายของรัฐในการแบ่ง เบาภาระให้กับประชาชนและผู้บริโภค ในขณะเดียวกันก็ต้องกำกับดูแล ปตท. ในฐานะบริษัทมหาชนที่ต้องดำเนินงานเพื่อสร้างประโยชน์ให้แก่ผู้ถือหุ้น
ซึ่งปัจจุบันผู้มีส่วนได้ส่วนเสียของ ปตท. มีเพิ่มมากขึ้น ทำให้ ปตท. ต้องมุ่ง สร้างสมดุลระหว่างผู้มีส่วนได้ส่วยเสียทุกกลุ่มอย่างเท่าเทียมกัน
To equitable balance among all groups of stakeholders 10

11. More supervision after PTT privatization
Supervising Agencies
Business operation
Management
Energy operator
SOE
Listed co.
ตลท.
สตง.
Energy Operation Act
Energy Regulatory Commission
สศช.
ปปช.
Analyst
shareholders 11

12. คู่มือ CG ฉบับปรับปรุง ปี 2010
Corporate Governance Handbook of PTT
1st CG Handbook in 2003
Revised CG Handbook in 2005
คู่มือ CG ฉบับปรับปรุง ปี 2010 12

13. Corporate Governance Principles of PTT
Adhere to Good Corporate Governance Principles for transparency enhancement
Corporate Governance Principles of PTT
CG Handbook in line with standards of SET and OECD
Equivalent to Code of Ethics of Thai constitution
Code of Business Ethics
Compliance with Laws and Regulations and Human Rights Principles
Political Support
Stakeholding and Conflicts of Interest
Confidentiality, Safeguarding and Use of Inside Information
Practices with Customers and Consumers
Practices with Trade Competitors
Procurement and Practices with Trade Partners
Community and Social Responsibilities
Treatment of Employees
Internal Audits and Internal Audits
Receiving and Offering Customary Gifts, Assets or other Benefits
Safety, Health and the Environment
Intellectual Properties and Use of the Information Technology and Communication System 13

14. Communication channels
CG in Action
Communication channels
Web site
contact Investor Relations Department
Contact Corporate Secretary
Contact PTT
Call Center
1365 14

15. 2010-2012 Awards of Achievements
PTT is widely recognized among business communities both international and local
Asia Talent Management
10th Asia Business Leaders Award 2011
8th Top Asia Overall Performance of 2011 (7th Top Asia Energy in 2010)
3rd Top Asia Integrated Oil&Gas of 2011 (35th Top Global Energy in 2010)
95th Fortune Global 500 of 2012
- 128th in 2011
- 155th in 2010
- 118th in 2009
167th The Biggest Listed Companies in the World 2012
-171th in 2011
-196th in 2010
-244th in 2009
Dow Jones Sustainability
Index # 17 in 2012
Best CEO 2011 & 2012
Best CFO 2011 & 2012
Best Managed Company 2011 & 2012
Best Corporate Governance 2011 & 2012
Best Investor Relations 2011 & 2012
Best Corporate Social Responsibility 2011 & 2012
Best Commitment to Strong Dividend Policy 2011 & 2012
Asian Corporate Director Recognition Awards 2010 & 2011 & 2012
Asia’s Best CEO
Asia’s Best CFO
Best IR Website/Promotion
Best Environmental Responsibility
Best Investor Relations
Best Investor Relations Professional
Thai BMA Best Bond Awards 2010 (Deal of the Year, Most Creative Issue, Best Investor Relations Issuer)
& 2011
The Leading Corporations in Thailand
The Leadership Achievement Award for the Asia Pacific region
The winners of The Asset’s Platinum Awards in 2010 & 2011
The Asian Banker Annual Achievement Awards 2012
The Leadership Achievement Award for the Asia Pacific region
SET Awards
Top Corporate Governance Report Award 2010 & 2011
Best Corporate Social Responsibility Awards 2011
TQA 2010 (Natural Gas Transmission Pipeline)
TQC 2011 (Oil BU, Gas BU, Trading BU)
Trusted Brand 2010 & 2011
Thailand’s Top Brand -Platinum Award for Service Station
Thailand’s Top Brand - Gold Award for Lubricant products
Board of the year Award 2010/11
Best CEO 2010 & Best CEO for Energy Sector 2011
Outstanding State Enterprise Award 2010 & 2011
Best State Enterprise of the Year, Best of the Best
Outstanding Leadership
Outstanding Innovation

16. Key Success factors of PTT’s CG
Strong support by executives
CG is part of corporate culture, not just a regulation
Assigned as one of KPIs for all departments
Continuous campaigns on CG’s importance
Trust in CG, daily practices, and beliefs
Continuously improve and update CG to align with business and environment changes

17. Balance All Stakeholders’ Interests
Nation
Share
holders
Customers
Environment
Society
Employees
Partners
People
&
Society

18. Thank you