• 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