• Effective communication about the effects of IFRS
conversion on entities help to keep analysts well-informed,
without negative impacts on the analyst community.
• Investors and analysts were slow to realize the significance
of the conversion.
• Investment houses failed to provide sufficient training to
their staff and did not update models promptly.
IR can manage the change and bridge the gap
1/16
Source: Pre-2011 communication about IFRS conversion by the Canadian Institute of Chartered Accountants
How to achieve?How to achieve?
1. Become a part of IFRS project team
2. Gain an understanding of IFRS knowledge
3. Understand impacts of IFRS adoption on financial statements
4. Understand Expectations of stakeholder
5. Set-up a communication strategy with top management
6. Investor feedback
To ensure that the CompanyTo ensure that the Company’’s information i.e. strategy, finances are s information i.e. strategy, finances are
disseminated appropriately so that the stakeholders can make infdisseminated appropriately so that the stakeholders can make informed ormed
decisions on material matters.decisions on material matters.
2/16
Benchmark with Benchmark with
International best International best
practicepractice
Identify information Identify information
required by required by
stakeholdersstakeholders
Define communication platformDefine communication platform
Disclose information Disclose information
at appropriate times.at appropriate times.
Define Define
StakeholdersStakeholders
3/16
Boards of Directors, Management, Boards of Directors, Management,
EmployeeEmployee
Investors Community / Analyst / Investors Community / Analyst /
Credit RatingsCredit Ratings
Media / Public RelationsMedia / Public Relations
Government entities or any related Government entities or any related
parties that use our Financial parties that use our Financial
statementstatement4/16
1.1. Main Impact of transition to IFRS on Financial StatementsMain Impact of transition to IFRS on Financial Statements
2.2. Impact of IFRS on performance reportingImpact of IFRS on performance reporting
• New format of financial statements versus the original
version.
• Any new items : Employee benefit , Decommissioning
• How financial analysis is transformed and enhanced.
5/16
Printed materialPrinted material
MeetingsMeetings
Electronic Electronic
communicationcommunication
Press release, fact sheets, annual & Press release, fact sheets, annual &
quarterly reports, MD&Aquarterly reports, MD&A
Roadshow with analysts, brokers, lenders, Roadshow with analysts, brokers, lenders,
institutional and private investors, Analyst institutional and private investors, Analyst
MeetingMeeting
Website, eWebsite, e--mail, teleconference, video mail, teleconference, video
conference, webcastconference, webcast
6/16
1. Internal communication1. Internal communication--
within organizationwithin organization
2. External communication2. External communication--
StakeholdersStakeholders
ASAPASAP
ItemItem TopicsTopics BGBG SHELLSHELL TOTALTOTAL BPBP
1Period of First IFRS Financial
Statements1-Jan-05 1-Jan-05 1-Jan-05 1-Jan-05
2 Functional Currency Pound Sterling US Dollar Euro US Dollar
3 Presentation CurrencyUS Dollar
(Since 1 Jan 10)US Dollar Euro US Dollar
4IFRS Presentation to Investor,
Analyst during transitional periodMar-05 Nov-04 Apr-05 Mar-05
7/16
Financial StatementsFinancial Statements
MD & AMD & A
Investors PresentationInvestors Presentation
8/16
9/16
3. An analysis of PTTEP3. An analysis of PTTEP’’s operating results. s operating results.
1. The adoption of the US Dollar as PTTEP1. The adoption of the US Dollar as PTTEP’’s new s new
FunctionalFunctional
2. A transformation in the presentation of financial2. A transformation in the presentation of financial
Currency in place of THB.Currency in place of THB.
statements.statements.
10/16
Determined by
Economic Environment
Functional Currency
PTTEP Functional
Currency is US Dollar
Sales price : USD linked
Cost : USD mainly
11/16
BALANCE SHEET�� ��STATEMENT OF FINANCIAL POSITION���� ������������
PTT Exploration and Production Public Company Limited
and Subsidiaries
20X2 20X1Notes
Unit: Baht
Assets
Current Assets
Cash and cash equivalents 7
Trade account receivable-parent co 8
Trade accounts receivable 9
Inventories
Materials and supplies, net 10
Other current assets
Working capital from co-venturers
Other accounts receivable 11
Accrued interest receivables
Other current assets
Total Current Assets
20X0
As at 31 December 20X2 and 20X1
48,677,769,437 43,994,689,588
10,918,592,580 9,939,682,052
3,345,572,004 1,586,942,852
1,048,974,429 320,367,591
8,145,572,198 6,414,793,357
407,126,209 905,606,084
3,685,134,238 1,740,176,616
4,950,652 42,291,574
2,550,165,062 2,007,482,012
78,783,856,809 66,952,031,72
6
As at 31 December 20X2, 20X1 and 20X0
43,959,134,033
9,904,126,497
1,551,387,297
284,812,036
6,379,237,802
870,050,529
1,704,621,061
6,736,019
1,971,926,45766,632,031,73
1
12/16
Unit: Baht
20X2 20X1
STATEMENT OF COMPREHENSIVE INCOME���6�7�8� 9����: ���:;
Net Income 22,153 41,674
Other Comprehensive Income, net of tax:
Currency Translation Differences (256) 33
Total Comprehensive Income 21,897 41,707
PTT Exploration and Production Public Company Limited
and Subsidiaries
For the Year Ended 31 December
20X2 and 20X1INCOME STATEMENT���FG���6�7�8� 9��
Unit: Baht
RevenuesSales 115,547 132,620
Total Revenues120,338 140,007
ExpensesOperating expenses 11,926 10,528
Total Expenses 78,037 64,976Loss from the investments in associates (17) (12)Income before fin. costs & income taxes 42,283 75,017Finance costs 1,870 840Income before income taxes 40,412 74,177Income taxes 18,259 32,502
Net Income22,153 41,674
Earnings per share Basic earnings per share 6.69 12.62 Diluted earnings per share 6.69 12.60
20X2 20X1
PTT Exploration and Production Public Company Limited
and Subsidiaries
For the Year Ended 31 December
20X2 and 20X1
13/16
CASH FLOW STATEMENT������������
PTT Exploration and Production Public Company Limited
and Subsidiaries
For the Year Ended 31 December 20X2 and 20X1
Unit: Baht
20X2 20X1
Cash flows from operating activities
Income before income taxes 40,412,837,139 74,177,065,207
Cash flows from investing activities
Increase in property, plant and equipment (59,388,765,720) (48,983,884,767)
Cash flows from financing activities
Dividends paid (13,366,259,736) (14,963,994,605)
Net increase in cash and cash equivalents 4,834,375,946 19,753,084,741
Cash and cash equivalents - beginning of the year 43,994,689,588 24,012,741,011
Cash and cash equivalents - end of the year 48,677,769,437 43,994,689,588
STATEMENT OF CASH FLOWS������������
14/16
Board of Director, Board of Director,
Management, Management,
EmploymentEmployment
Investor Investor
Community, MediaCommunity, Media
������������������
PTTPTT
•• Notify on Board MeetingNotify on Board Meeting
•• RoadshowRoadshow
•• SmartFIS (Internal Website)SmartFIS (Internal Website)
•• Knowledge sharing / Fundamental IFRSKnowledge sharing / Fundamental IFRS
•• Analyst MeetingAnalyst Meeting
•• Roadshow / Conference call / webcastRoadshow / Conference call / webcast
•• FactsheetFactsheet
•• Meeting One on One RoadshowMeeting One on One Roadshow
15/16
• Take proactive action in educating and
communicating IFRS impacts to the market
•• Take proactive action in educating and Take proactive action in educating and
communicating IFRS impacts to the marketcommunicating IFRS impacts to the market
16/16