Agenda

1. EVA Overview What is EVA ? Why EVA ? EVA Improvement EVA Value Tree & Key Value Drivers EVA-based Management Platform PTT Introduction PTT Practice EVA Key Success Factors & Benefit Agenda

2. PTT : The Largest Public Company in Thailand Ownership : Ministry of Finance ~ 52%, Public ~ 48% PTT Group represents a significant portion of Thai economy Total Market Cap. ~ Bt5.28tr ($135bn) PTT 13% PTT Group ~ Bt1.4tr ($37bn) or 27% of total Others 73% Affiliates 14% PTT (Bt/shr) SET PTT outperforms the market(since IPO on 6 December 2001) PTT +586% SET +139% Notes : Market capitalization data as of 24Mar 2006, Stock prices data from 6 Dec 2001 to 24 Mar 2006

3. Recognition : Confidence & Credibility PTT is widely recognized among business community both local and international. PTT ratings are comparable to sovereign ratings • Foreign : Moody’s (A2) / S&P (BBB+) • Local : Moody’s (A2) / S&P (A-)

4. Hydrocarbon Value Chain PTT Group has strong presence in various sectors throughout the hydrocarbon value chain. Fully Integrated Portfolio & Strong Leadership Position Upstream Intermediate Downstream End Customers

5. Solid Financial Performance Million Baht Million Baht EBITDA : Bar Revenues : Line Revenue26% EBITDA 23% Net Profit 43% 2001-05CAGR EBITDA 114,045 Revenues Others Oil 79,296 62,355 PTTEP 54,173 51,127 Gas %Change • Net Incomet 21,565 24,485 37,580 62,666 85,521 36% - From Subs.&Asso. 479 8,785 17,777 37,240 52,984 42% • EPS (Baht/Share) 7.71 8.75 13.43 22.40 30.58 36% Note : All figures after restatement; Revenues and EBITDA do not include eliminations; RRC was classified as an “associate” in 2004, but a “subsidiary” in 2005.

6. Consolidated Income Statements

7. CAGR 51% 85,521 CAGR 57% 36% Petchem 62,666 28% Refining 51,016 67% 37,580 39,771 Oil 93% 20,652 Gas PTTEP 2003 2004 2005 2003 2004 2005 Performance by EPS 2003 2004 2005 Net Profit (MMB) 37,580 62,666 85,521 No. of Shares 2,797.25 2,797.25 2,797.25 EPS (Baht/Share) 13.43 22.40 30.58 • Buy-in RRC 100% at End year 2004 & Gain from RRC Debt Restructuring in 2005 • 2005 Amortization of Goodwill from acquire BPE • Adjust Net profit SPRC before take % share by equity method Net Profit : Bt mm EVA : Bt mm

8. PTT Need to Create Future Value Added PTT Stock Price (Baht/Share) Net Profit : Million Baht 270 CAGR 152% 42.50 Create Value Added Market Enterprise Value 952,588 MMB Market Cap755,256MMB @PTT270.- MVA 404,291 755,256 548,297 Debt Invested Cap 197,332

9. Gas Performance Gas Performance Gas Sales Volume & Price Unit : MMB 2003 2004 2005 NOPAT 19,206 24,418 25,561 IC 66,869 62,992 72,225 ROIC 28.72% 38.76% 35.39% WACC 9.79% 10.36% 10.66% EVA 12,659 17,892 17,862 CAGR 25% CAGR 21% CAGR 35% Vol. Growth (CAGR) 7% EVA Growth (CAGR) 19% 3,034 2,773 2,655 17 , 862 17 , 892 12 , 659 Gas Sales Volume (MMCFD) Gas EVA (MMB) 2003 2004 2005 2003 2004 2005

10. EVA Overview What is EVA ? Why EVA ? EVA Improvement EVA Value Tree & Key Value Drivers EVA-based Management Platform PTT Introduction PTT Practice EVA Key Success Factors & Benefit Agenda

11. perspective 3 (e.g. internal) perspective 4 (e.g. learning + growing) perspective 1 (e.g. financial) perspective 2 (e.g. customer) The Balanced Scorecard Supports the Achievement of the Strategic Objectives Within the Framework of Value Based Performance Management VISION • develop • clarify • consensus • articulate • communicate • translate Strategy • define actions • “error correction” • feedback align strategicinitiatives Review/Coaching Planning/Targeting • find goals andobjectives • link to performancemeasures onprocess level learn + improve implement +execute Monitoring/Reporting • set targets • define actions +milestones • analyzing +evaluating ofactions + milestones • exceptions • analyzing andevaluating of “figures”

12. PTT Management Roadmap External Appraisal • Government Plan • Ministry of Energy Policy • Macro Economic • Industrial Competitiveness Corporate Strategy & Direction • Enhance Value • Create Long-Term Value Corporate Plan Business Plan Support Function Plan Organization Performance Appraisal • Financial Analysis • Customer Satisfaction • Asset Utilization • Project Execution STS Resulted Based Budgets Results Rewards AIM Process Measurement Work Programs Performance Agreement : PA/KPI Ministry of Energy Board Board CEO CEO SEVP&EVP/VP Implementation & Management /Monitor IT HR R&D

13. 2006-2010 Corporate Planning Schedule Aug Apr Jun Jul Feb Mar May Jan Nov Dec Sep Oct 2005 PTT & PTT Group Direction • PTT Group Direction & Strategy • Strategic Initiatives • Enablement Strategy • Target (Fin) • KPI Board Approval STS STS Deployment Prepare PTT Group Direction & Strategy CP VP Up • Industry and regulatory report • Detailed 5-10 year strategies • Financial analysis and scenario • Business diversification for 25 years 1 BG & Subsidiaries Direction GBMC OBMC PRBG Group Direction Seminar 2 BG & Subsidiary Strategic Business/Enablement Initiative Implementation Plan Formulation Business Plan นำเสนอประเด็น No BG 3 ธุรกิจก๊าซฯ ธุรกิจน้ำมัน ธุรกิจปิโตรเคมี/การกลั่น ยังคงเห็นชอบกับ Initiativesปีทีแล้ว Yes Budgeting Formulation จัดทำแผนงานในรายละเอียด CPC MC CPC MC Board CPC MC

14. PTT Group Vision “Thai Premier Multi-National Company” • A regional champion • Among the Asian top 50 largest companies • Top quartile profitability and value creation • An international organization . . . • 20% of revenue from international operations • Multinational workforce • A partner of choice for oil majors and national oil companies • . . . with a Thai heart • Strong contribution to the Thai people and support to Thai industry

15. Strategic Direction for PTT Group Role in Portfolio Business Area Business Mission Strategic Intents Protect, defend and grow aggressively in Thailand and beyond Protect, defend the core, and grow • Maximize domestic resource exploitation • Secure reserves beyond Thailand E&P "Core value creators" • Ensure sufficient gas supply for Thailand and PTT group • Monetize on value-add and peripheral businesses Gas • Serve domestic demand needs • Support group’s trading and marketing agenda Refining Consolidate & expand 'cautiously' • Enhance value of groups feedstock Petchem "Integrated value enhancers" Reduce cost, segment & value add Marketing • Serve domestic retail and commercial demand • Serve as service provider and controller for group companies • Capture value from pure trading activity Build capabilities, expand & leverage Trading

16. = size 20 ,000 Mil.baht Define More Aggressive Growth ; Size of each Business Group by % PTT

17. Portfolio Valuation For VBM Million Baht Intrinsic Value Others Utility Petrochemical Debt Refining Gap Oil Value Today Gap Stock Price Gas EP

18. PTT Portfolio Sensitivity Analysis Driver Base Scenario Actual Low Scenario Impact to Net Income, 2005 (%) High Scenario 78,577 MM.Bht Dubai Oil Price 49 US$ 48/bbl US$ 35/bbl US$ 60/bbl -15,470-19.7% 14,28018.2% 1,190 GRM 6.7 -4,437-5.6% 5,9167.5% 6 4.5 8 2,070 HDPE 4,9986.4% 904 860 478 -7,487-9.5% 1,115 1,568 THB-USD FX rate -3,042-3.9% 3,0423.9% 40 40 38 42 0 Thailand Real GDP growth -213-0.3% 3200.4% 4.5% 4.5% 3.5% 6% 0

19. Group Net Income Likely To Be Above THB 64 Bn In 2005 Monte Carlo simulation of Net Income 2005 (with correlation) VaR = 15 THB Bn Frequency Projected 79 THB Bn 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 54,772 60,502 66,231 71,961 77,691 83,420 89,150 94,880 100,609 106,339 Net Income (THB Mn) With 95% probability, net income will be above THB 64 Bn Monte Carlo Simulation based on 95% confidence interval , note: n = 10,000 , Incorporate correlation coefficient of 5 key drivers Source: PTT data; Team financial model

20. 8 6 8 2 4 5 3 2 9 3 5 6 4 9 1 1 19 19 18 18 11 17 8 6 3 4 2 1 5 12 20 10 15 21 13 14 22 23 7 Expected Risk Map 2005 Corporate Risk Map 2005 Impact Impact 17 E4 E3 E2 E1 E4 E3 E2 E1 11 M11 H7 E6 E5 M11 H7 E6 E5 L14 M12 H9 H8 L14 M12 H9 H8 L16 M15 M13 H10 L16 M15 M13 H10 Likelihood Likelihood Strategic Risk Subsidiary Business Governance Investment Decision Making Risk L-T Project : GBPC, LNG NGV Business M&A Risk : NPC&TOC,RRC&SPRC,TPI Competency Gap ICT Business Enabling Project Risk Business Risk Gas Project Delay / Cost Overrun P&R Project Delay / Cost Overrun Oil Project Delay / Cost Overrun Financial Risk NG Price Risk / P/L Tariff NG Supply & Allocation LPG Price Volatility /Liquidity High Competition/Margin Reduction Brand Management Oil Trading Risk FX Risk Liquidity Risk Funding Risk Credit Risk 9 16 Operation Risk Gas Operation Failure : GSP, P/L Oil Operation Failure : Depot Oil Transportation Risk 11 17 18 19

21. PTT Performance Based Management Ministry of Finance agrees with The Board of Directors PA The Board of Directors agree with President Corporate KPIs PTT Performance Management President agrees with Senior Executive Vice Presidents BG. KPIs & Support Function (HO) Senior Executive Vice Presidents agree with Executive Vice Presidents & Department Managers Department KPIs Department Managers Agreed with Line Managers & Staff Individual KPIs • Annually : KPIs & Target Setting PTT • Quarterly : • - Reporting &Monitoring • - Suggestion & Improvement Plan • Year End : Performance Appraisal &Reward

22. พิธีลงนามบันทึกข้อตกลงตัววัดผลการดำเนินงานพิธีลงนามบันทึกข้อตกลงตัววัดผลการดำเนินงาน และค่าเป้าหมาย

23. Performance Management Evolution • PA Guideline Redesign • Performance • GCG MOF • PA Policy Mandated • Financial Efficiency • Physical Efficiency • Service Quality • Corporate Plan • Quality • Government Policy • Management Quality • & GCG • PA Guideline Modification • Performance Effectiveness • Performance Efficiency • Stakeholder Satisfaction • Organization Management • & Development • GCG • PA Policy Introduced • Static Efficiency • Dynamic Efficiency • Project Implementation • Government Special • Project • Well Performed SOE • Remittance • ROE • Wage Component • Productivity 43 34 38 39 47 45 30 35 40 Year PA Policy Implemented until now • PTT as a Well Performed SOE • Mc Kinsey : Reorganization • Organization Structure • EVA Concept & Value Tree • PA Policy Implemented • Financial Efficiency • Physical Efficiency • Service Quality • Corporate Plan Quality • Corporate Plan • Implementation • Management Quality • BA&H : PBMS • KPIs Designs • PBMS Information • Warehouse PTT

24. Corporate : Balanced Scorecard Long –Term Shareholder Value Financial Perspective Optimize and secure PTT Group Portfolio Synergies and Achieve Profit Potential Growth Strategy Productivity Strategy • Enhance Growth • Strategy of PTT Group by: • International Expansion, • New-line, M&A Enhance PTT Group ROCE>Peers Synergy Cost Saving from Group Synergy • Group Asset Utilization • Asset Mgt. • Share Service Customers Value Proposition Issue Management Deliver superior PTT Group Products&Services For Key Account Customer Stakeholder Perspective Create PTT Group Excellence Brand Loyalty. Create PTT Group Public Perception. Build a consistent and appealing story for investors Proactive Government Co-Operation Product/Service Attribute Relationship Image Operation Management Process Stakeholder Management Process Innovation Process Regulatory and Social Process Processes that produce and deliver products and Services • Operational Excellence • Group Investment Decision Making • Project Mgt./ Risk Mgt. • Performance Mgt./ Monitoring & Audit • BEP / SCM / GG Through Board Member( Subsidiaries) • PTT Group Strategic Alignment Processes that enhance customer value • CRM Standard/ TQA • Investor Relation • Government Policy Research Processes that create products and services • Build Capabilities & Technology Know how Provide for PTT Group • PTT group Innovation Contest Process that improve community and the environment • Regulatory Mgt. • Leader in Alt. Fuels • Social & Com. Project • Build Corporate Image & CSR Internal Perspective Strategic IT Portfolio Creating Readiness Creating Alignment Strategic Job Families Organization Change Agenda + + Human Capital Organization Capital Information Capital Learning and Growth Perspective • Unify Group Culture • Build a cadre of Leaders • HPO • Buildup & Leverage PTT Group KM Capability • Group HRM Pool • Core competency/ Career • Development • PTT Group MI

25. KPIs Development Concept KPIs are developed to meet the goals of the unit, therefore the items need to be considered at each level are shown in diagram; Corporate Mission/ Vision / Strategy/ Objective Corporate KPIs BG/HO Functional Description Corp. Direction / BG/HO Business Plans BG/HO KPIs BG/HO Business Plan/ Dept. Objectives & Plans Department Functional Description Department KPIs

26. Performance Management Procedure Corporate KPIs BG KPIs Department KPIs Source PA Corporate Strategy BG Strategy Functional Description Functional Description KPI Set up and Agreement Performance Mgt. Team & BG’s Planning Dept. Identified list of KPIs & their targets Performance Mgt. Team & BG’s Planning Dept. Identified list of KPIs & their targets BG’s Planning Dept. & Related Dept. Identified list of KPIs & their targets MC Approves BG SEVP Approves BG EVP Approves Performance Mgt. Team & BG’s Planning Dept. Develop Data Requirements & Timetable BG’s Planning Dept. Develop Data Requirements & Timetable BG’s Planning Dept. & Related Dept. Develop Data Requirements & Timetable Data Collection ICT supports Data Collection facilitated by Strategic Planning Dept. Strategic Planning Dept. & BG’s Planning Dept. Collect Data, Perform Calculation and Provide Supporting Data for Analysis BG’s Planning Dept. Collect Data, Perform Calculation and Provide Supporting Data for Analysis BG’s Planning Dept. & Related Dept. Collect Data, Perform Calculation and Provide Supporting Data for Analysis Strategic Planning Dept. & BG’s Planning Dept. Gather, Review and Analyze Results, Carry Out Performance Evaluation and Scoring Strategic Planning Dept. & BG’s Planning Dept. Gather, Review and Analyze Results, Carry Out Performance Evaluation and Scoring Strategic Planning Dept., BG’s Planning Dept. & Related Dept. Gather, Review and Analyze Results, Carry Out Performance Evaluation and Scoring Data Analysis Strategic Planning Dept. & BG’s Planning Dept. Prepare and Presents Reports BG’s Planning Dept. Prepare and Presents Reports BG’s Planning Dept. & Related Dept. Prepare and Presents Reports Reporting

27. PTT Group : EVA Contribution PTTNGD ROIC PTTNGD Spread PTTEP PTTUT - TTM-(M) Gas BG Subsidiaries WACC x PTTLNG TTM-(T) DCAP Invested Capital GSM GSP1 EVA: GAS BG. ROIC GSPRY Spread GSP 2 - WACC GSPKNM x GSP3 Gas BA Invested Capital NGR GSP5 TM EVA: HO EVA: PTT RMG MKT CMG ROIC Oil BA S&LG Spread TRD - WACC x EVA: Oil BG. PTTTI BAFS IPS Invested Capital PTTCL THAPPLINE VLPG RBA Oil BG Subsidiaries TLBC FPT KPL SBECL

28. Gas BG. : KPIs & PERSPECTIVES KPIs Strategic Objectives Perspectives • ROIC • EVA (Gas Subsidiaries) • OPEX per BOE • Maximize Value of Gas Group • Improve Operational Efficiency Financial • Action Plan Improvement : Customer • Customer Management • Gas Demand Commitment • Gas Quality Management • Improve Customer Service & satisfaction Customer • Sustain Long Term Growth on Project Construction Success • Secured Long Term Supply • Ensure Gas Core Value • Invest in high potential niche segment • Prepare Roadmap to Capture Regional Opportunities for Long • Term Growth of PTT Group • Enhance Value Added Business : Petrochemical Expansion • with Gas Based Feedstock • Increase PTT Learning & Innovative Capability and PTT • Competitiveness by KM • Project Management Effectiveness : • Gas Supply Procurement • New Tariff Preparation • NGV Strategy & Direction Rationalization • Success on Execution of Regional • Growth Work Plan • Gas Based Petrochemical Complex 3 • Knowledge Management : KM Model • of GSP Internal • Enhance Leadership ’s ability to lead, enable, drive, • and motivate people to achieve the corporate goals • Leadership Effectiveness • Result Based Management • Strategic Planning Process Effectiveness • Risk Management • HRM Implementation Learning & Growth

29. Oil BG. : KPIs & PERSPECTIVES KPIs Strategic Objectives Perspectives • ROIC • EVA (Oil Subsidiaries) • Lube / Non-Oil Contribution Margin • OPEX per BOE • Enhance Oil Value and Group Synergy • Improve Lube/Non-Oil Contribution Margin • Improve Operational Efficiency Financial • Maximize Service Station Network Utilization • Expand Market /Differentiate and Improve Quality of • Products to be Product Leadership:LPG & Lube • Improve Brand, Product and Service Quality Management • Throughput per Service Station • LPG / Lube Market Share • Customer / Consumer Satisfaction Score • Action Plan Improvement : Cust./Con Customer • Expand International Trading / Asian Oil Trading Hub • Enable Business by Leveraging ERP through SCM • Maximize Asset Utilization of Depot Network • Enable Oil Business by usage ICT for Station Network • Management • Enable Business by Enhance Business Trading Capability • Trading Volume Growth: • Success on Execution of SCM Roadmap • & Implementation • Success on Execution of Depot Master • Plan Implementation • ICT Enablement Implementation • Success :Station Network • Trading Capability Implementation Internal • Enhance Leadership ’s ability to lead, enable, drive, • and motivate people to achieve the corporate goals • Leadership Effectiveness • Result Based Management • Strategic Planning Process Effectiveness • Risk Management • HRM Implementation Learning & Growth

30. P&R BG. : KPIs & PERSPECTIVES KPIs Strategic Objectives Perspectives • Ensure Create value through group synergy Financial • EVA (Oil Subsidiaries) • Enhance Value Added Business : Petrochemical • Expansion with Gas Based Feedstock • Downward integration of Petchem by Merger & • Acquisition • Enhance PTT Group by Operating & Marketing Synergies • Strengthen Existing Business by Merger • Enhance Value Added Business : Project Formulation • on Downstream Petrochemical • Strengthen Existing Business by Ownership Structure • Capture Refinery Value by Formulate LT Master Plan • To be Operational Excellence • GBPC Approval • TPI Acquisition Conclusion • Establish PTT Polymer Marketing • Merger Completion:TOC & NPC • Merger Completion/List in SET :RRC & SPRC • On Time Project Completion:PDH / PP/ • PTTPE JV/Phenol JV • On Time Study Completion:P&R • Shareholder Restructuring • On Time Study Completion:Refinery • Master Plan • On Time Study Completion:Benchmarking • Performance of Subsidiaries Internal • Enhance Leadership ’s ability to lead, enable, drive, • and motivate people to achieve the corporate goals • Leadership Effectiveness • Result Based Management • Strategic Planning Process Effectiveness • Risk Management • HRM Implementation Learning & Growth

31. Create Front Line Ownership EVA : Oil Business Group Deploy & Drive EVA to All Operating Units EVA Center: Oil Planning Deploy & Drive EVA to All Operating Units EVP Terminal Operation Commercial & International Mkt. Supply & Logistic Retail Marketing Supply Product to Depot Deliver Product To Customer EVA Contribution EVA Contribution Support EVA Contribution Ordering &Customer Relations Center Support EVA Contribution EVA Government & Industrial Mkt. Supply & Logistic Planning Central Petroleum Terminal Strategic Retail Mkt. EVA Aviation & Marine Mkt. EVA Supply Operation Regional Petroleum Terminal EVA Dealer Owned SS Mgt. Department EVA LPG Mkt. Products Transportation Eastern Petroleum Terminal Marketing Engineering Engineering & Maintenance EVA International Mkt. EVA Non - Oil Business

32. EVA Overview What is EVA ? Why EVA ? EVA Improvement EVA Value Tree & Key Value Drivers EVA-based Management Platform PTT Introduction PTT Practice EVA Key Success Factors & Benefit Agenda

33. กระบวนการวางแผนกลยุทธ์กระบวนการวางแผนกลยุทธ์ การกำหนดเป้าหมาย และกลยุทธ์ในการบรรลุเป้าหมาย การบริหารความเสี่ยง การสื่อความให้เป็นที่เข้าใจทั้งองค์กร การจัดโครงสร้างองค์กรที่เหมาะสม และกำหนดบทบาทความรับผิดชอบที่ชัดเจน การติดตามทบทวนและระบบรายงานข้อมูล การวัดประเมินผล และการสร้างระบบจูงใจ ปัจจัยความสำเร็จในการใช้ EVA ต้องมีกระบวนการบริหารจัดการอย่างมีประสิทธิภาพ เพื่อมุ่งหวังผลสัมฤทธิ์

34. Profile of a Most Admired Company Most Admired Company Alignment Around Business Objectives Enabling cultures Achieve success through people • Culture leveraged for • business success • Outward focus on • customers and markets • Clarity regarding strategy • Focus on performance • Accountability for results • Long-term perspective • Commitment to career • development • People come first • Emphasis on collaboration • and teamwork • Ensure that executives, middle managers, and employees alike all clearly • understand strategic objectives • Ensure that people at all levels have “line of sight” to corporate goals (i.e., • understand the implications of strategy for their own work responsibilities) Source: Hay Group

35. Organization will achieve outstanding performance when people have clarity in their roles, the capability to deliver results and the commitment to succeed. Hay ‘s believe

36. “ If we cannot make a profit, that means we are committing a sort of crime against society. We take society’s capital, we take their people, we take their materials; yet without a good profit, we are using precious resources that could be better used elsewhere.” - Konosuke Matsushita Source: Konosuke Matsushita is the creator of the world’s leading consumer brand (Panasonic)