Good Corporate Governance of PTT Group

1. Good Corporate Governance of PTT Group Mr. WisarnChawalitanon 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 Good Corporate Governance of PTT Overview of PTT Group 2

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

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

5. PTT Group is a driving force of Thailand’s economy State remittance Highest market cap in SET 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% ofGDP) 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 5 *GDP estimated by NESDB as of 21 Nov. 2011

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 Economic Sustainable Growth Strategy Environ- mental Social CG CSR Corporate Governance Corporate Social Responsibility PTT Corporate Values Big Synergy Trust & respect Innovation Integrity& ethics PerformanceExcellence Responsibilityfor Society “smart” “good” Aspiration : Becoming a Global Fortune 100 Company by 2020 With Top Quartile Performance and on DJSI by 2013 Strong Long “Top quartile performance” Dow Jones Sustainability Indexes 6

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

8. 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 structure 9

10. 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 Listed company roles SOE roles country • Observe government policies • Relieve energy price burden for consumers • Create benefits for shareholders • Grow business VS shareholders Public/society/community employees suppliers customers To equitable balance among all groups of stakeholders 10

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

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

13. Adhere to Good Corporate Governance Principles for transparency enhancement Corporate Governance Principles of PTT • CG Handbook in line with standards of SETandOECD • 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. CG in Action Web site E-mail Call Center Communication channels www.pttplc.com ir@pttplc.comcontact Investor Relations Department corporatesecretary@pttplc.comContact Corporate Secretary corporate@pttplc.com Contact PTT 1365 14

15. 2010-2012 Awards of Achievements PTT is widely recognized among business communities both international and local

16. Key Success factors of PTT’s CG

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

18. Thank you