CBD Business Plan

2008 – 2012

October 2007
 Content
CBD Business Plan 2008 - 2012

1. Vision
2. Objective / Target
3. Strategy
4. Work Plan & KPI
5. Resource requirement

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 Vision
CBD Business Plan 2008 - 2012

To support PTT Group's long term goal of

becoming an Asian Energy Major by focusing on
strategic investment opportunities as integrated
value chain of group capitalization, which provid
es gas supply security to Thailand, growth in for
eign operational income, and attractive returns.

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 A High Aspiration: Asian Top 5 In Most Key Business Areas

2006 2020

“Asian Energy Major” $27 Bn Rev. #265* $50-60 Bn Top 100*

Group
$20 Bn Mkt. Cap $60-90 Bn

“Asian Gas Major”

EP • Indo-China basin master 180 kboe/d #16 1,000 kboe/d Top 5
with global E&P footprint

Gas
• Integrator of Asian gas 3 Bcf/d sales #4 9 Bcf/d Top 3
and LNG

“BASF of ASEAN” USD 7 Bn #13 USD 15-20 Bn Top 5

Petchem
revenue

“Resilient refining & Fragmented Integrated

Refining #5 Top 10
aromatics player” 855 kboe/d 370-855k boe/d

New “Asian Biofuel and None 29 MMB/yr Top 5

business Energy Solution pioneer”

* Fortune global ranking, assuming an additional $40-60 Billion from Trading (3x-4x velocity) -4-
 Strategic Intents Drive Specific Sector Actions

Roles in Portfolio Business Areas Strategic Intents Strategic actions

Grow aggressively • Create value & achieve international

in Thailand Plus revenue target beyond 20% of total
E&P
and beyond revenue (excluding trading revenue)
“Core value
creators” Expand regional &
Gas international • Encourage power sector-hydro/others
network, pursue

g
growth vigorously

tin
• Consolidate and establish flagship

da
Refining
Restructure & • Selectively expand to meet PTT
Consolidate & investment criteria
up
expand
• Consolidate related affiliates and review
“Integrated Petrochemical 'cautiously‘
options for IRPC
value
• Limit investment to sustain existing
enhancers” capital
Reduce cost and • Continue network rationalization
Marketing Review Retail • Review and Define Retail Strategy and
Strategy Business Models for oil and non-oil
Lead group
• Further pool trading products of group
Trading trading needs
companies
and build
capabilities • Build trading capability & network
 Deployment from CSD’s Objectives

CSD ’s Objectives CBD ’s Objectives

Internal Perspective
• Tie-up strategy between EP & CBD1
Gas in Execute Strategic Pipeline Coordinate Indo-China Basin Opportunities
Network Roadmap to Secure LT
Supply

CBD2
g
Internal Perspective Coordinate and Pursue LNG Opportunities
• Capture International Growth
n

Opportunity
ati

CBD3
Identify and Pursue Attractive
d

Investment Opportunities/Corporate
up

M&A

CBD4
Enhance Organization for
International Business
Internal Perspective
• Manage PTT Group Portfolio CBD5
Management common KPI
Complied with CSD
Objective and KPI
updated 15 Jan 2007- 6 -
 Objective/Target
CBD Business Plan 2008 - 2012

• Consolidate international growth road map and execute plan to

strengthen PTT’s position in Indo-China basin to support PTT
long term goal of becoming Asian Energy Major
• Support LNG procurement of up to 10 MTPA by 2018 by
packaging investment with LNG supply contract
• Pursue attractive investment opportunities which in line with
corporate strategy
• Continuously develop M&A and business development
capabilities
• Achieve International Revenue of 20% by 2011

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 Strategies
CBD Business Plan 2008-2012

1. Packaging investment along value chain to capture synergies,

increase bargaining power and mitigate risk.
2. Pursue attractive opportunities that provide strategic fit through
various approaches e.g. JV, M&A approach
3. Leverage on existing international business operations and G-to-G
relationship to capture potential investment opportunities
4. Alliance with strong international and local partners for new
territories.

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 CBD Road Map for International Growth

2006 2007 2008 2009+

CBD
(Corporate
Business Formulate
Development) Roadmap

BD ad hoc
Team
Execute short term opportunities

Essential Coordinate
Project Team Strategic & high value opportunities

Central Handle
BD/M&A Unit Organization preparedness PTT value chain International
BD and M&A activities

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 Work Plan & KPI
CBD Business Plan 2008-2012

Work Plan
1. Coordinate High Strategic Value Opportunity
1.1 Myanmar
- Gas development (M9)
- GSA negotiation
- Gas p/l from M9
- domestic gas & oil p/l
- deep sea port & oil terminal
- Reserve acquisition/ E&P
1.2 Cambodia
- OCA resolution
- Gas p/l from OCA
- Koh Kong Development :GSP/Power plant/P&R complex/deep sea
port
- Reserve acquisition/E&P
1.3 Indonesia
- Natuna P/L
- Gresik-Semarang P/L
- Tangghu LNG
- Industrial Oil Mkt.
- Reserve acquisition /E&P
1.4 LNG
- ME (Qatar, Iran)
- Australasia (Australia,PNG)
- North Africa (Egypt, Algeria) - 10 -
 Work Plan & KPI
CBD Business Plan 2008-2012

Work Plan
1. Identify & pursue attractive investment opportunities /Corporate M&A
3.1 Execute identified opportunities : Taxila/Robin/Gresik-
Semarang/Kedah- Songkhla/Kazakhstan/Vanda/Hua Sai/ Pattani
3.2 Assessment & pursue new opportunities
3.3 Identify & execute corporate M&A

2. Enhance organization for international business

4.1 Capitalize existing oversea offices
4.2 Augment processes
4.3 Development of international staffs

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 Work Plan
1. Coordinate High Strategic Value Opportunity
1.1 Myanmar

 Objective :
 to secure reserve in Myanmar
 to capture business opportunities
where PTT has strength
Map  to link gas supply back to Thailand

 Strategy:
 ????

 Potential Projects :
 Gas development (M9)
 M9 GSA negotiation
 Gas p/l from M9
 Domestic gas & oil p/l
 Deep sea port & oil terminal
 Reserve acquisition/ E&P

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 Work Plan
1. Coordinate High Strategic Value Opportunity
1.1 Myanmar
Responsible 2008 2009 2010 2011 2012 2013 2014
Key Activities Unit

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 Work Plan
1. Coordinate High Strategic Value Opportunity
1.1 Myanmar

Key implementation steps : in 2008

2008
Responsible
Key Activities Unit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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