Annual Report 2010 by pttgc group

$QQXDO 5HSRUW 377 &KHPLFDO 3XEOLF &RPSDQ\ /LPLWHG

:KDW PDNHV XV GLIIHUHQW"

&5($7( 9$/8(

CONTENTS

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

2UJDQL]DWLRQ 6WUXFWXUH DQG 0DQDJHPHQW 6KDUHKROGLQJ 6WUXFWXUH 'LYLGHQG 3D\PHQW 3ROLF\ 2UJDQL]DWLRQ 6WUXFWXUH %RDUG RI 'LUHFWRUV 0DQDJHPHQW 7HDP 0DQDJHPHQW 6WUXFWXUH 2UJDQL]DWLRQ DQG 3HUVRQQHO 0DQDJHPHQW

*RRG &RUSRUDWH *RYHUQDQFH 5HSRUW RQ &RUSRUDWH *RYHUQDQFH 5HSRUW RI WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH 5HSRUW RI WKH 1RPLQDWLRQ &RPPLWWHH 5HSRUW RI WKH 5HPXQHUDWLRQ &RPPLWWHH 5HSRUW RI %RDUG RI 'LUHFWRUV 5HVSRQVLELOLWLHV WR )LQDQFLDO 5HSRUW

)LQDQFLDO 5HSRUW 5HSRUW RI WKH $XGLW &RPPLWWHH $XGLW 5HSRUW RI &HUWLILHG 3XEOLF $FFRXQWDQW )LQDQFLDO 6WDWHPHQWV 1RWHV WR WKH )LQDQFLDO 6WDWHPHQWV $XGLW )HH 7HFKQLFDO 7HUPV $EEUHYLDWLRQV

VISION Leading chemical company for better living through innovative technology and people

MISSION To be a top quartile performer in Asia/Pacific as PTT flagship in chemical business To be a trustworthy company to all stakeholders with social responsibility and environmental care To excel in R&D and to intelligently apply state-of-the-art technologies To persistently cultivate highly proficient workforce with profound engagement and commitment to professional excellence

Annual Report 2010 PTT Chemical Public Company Limited

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

6(7 $ZDUGV RI +RQRU 6(7 $ZDUGV ([FHOOHQW &* 6FRULQJ IRU FRQVHFXWLYH \HDUV FRQIHUUHG E\ WKH 6WRFN ([FKDQJH RI 7KDLODQG

$&7,1* 5(63216,%/< 7KH (FRPDJLQDWLRQ $ZDUG IRU OHDGLQJ 75867 FRPSDQLHV LQ 7KDLODQG LQFOXGH 81 *OREDO &RPSDFW u(FRPDJLQDWLRQ /HDGHUVKLS $ZDUGv 377 &KHPLFDO LV FRPPLWWHG WR WKH DQG u5HWXUQ RQ (QYLURQPHQW $ZDUGv SULQFLSOHV RI WKH 8QLWHG 1DWLRQV *OREDO ,W LV WKH &RPSDQ\t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

)LQDQFLDO .H\ )LJXUHV 7RWDO $VVHWV 7RWDO /LDELOLWLHV 7RWDO 6KDUHKROGHU V (TXLW\ 7RWDO 5HYHQXHV (%,7'$ 1HW 3URILW (DUQLQJV 3HU 6KDUH %DKW

<($5

),1$1&,$/ 5$7,26

&XUUHQW 5DWLR WLPH

(%,7'$ WR 7RWDO 5HYHQXHV

1HW 3URILW RQ 7RWDO 5HYHQXHV

5HWXUQ RQ 7RWDO $VVHWV

5HWXUQ RQ (TXLW\

'HEW WR (TXLW\ WLPHV

8QLW 0LO LRQ %DKW

160,251

168,022

152,318 85,111

7RWDO $VVHWV

87,083

103,186 11,739 6,802

7RWDO 5HYHQXHV

10,290

1HW 3URILW

Annual Report 2010 PTT Chemical Public Company Limited

0HVVDJH WR 6KDUHKROGHUV

0U 1RQWLJRUQ .DQFKDQDFKLWUD &KDLUPDQ

0U 9HHUDVDN .RVLWSDLVDO 3UHVLGHQW &(2

'HDU 6KDUHKROGHUV

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

Annual Report 2010 PTT Chemical Public Company Limited

2UJDQL]DWLRQDO 'HYHORSPHQW

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

6RFLDO 5HVSRQVLELOLW\

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

377 &KHPLFDO LV FRPPLWWHG WR H[HFXWLQJ LQWHJUDWHG EXVLQHVVHV E\ DGGLQJ RSSRUWXQLWLHV WKDW FDQ EH EXLOW RQ IRU KLJKHU YDOXH SURGXFWV ZKLFK ZLO VWUHQJWKHQ LW LQ WKH SHWURFKHPLFDO EXVLQHVV DQG FRPSHWH LQ WKH ZRUOG PDUNHW 7R JURZ LQ D FRQWLQXRXV DQG VXVWDLQDEOH PDQQHU RQH PXVW FRQGXFW EDODQFHG EXVLQHVV UDQJLQJ IURP GHILQLWLRQ RI VWUDWHJLF SROLFLHV WR HIIHFWLYH PDQDJHPHQW V\VWHPV EDVHG RQ D VROLG IRXQGDWLRQ ,W DOVR LQYROYHV RXU FRPSHWHQW DQG GHGLFDWHG SHUVRQQHO XQGHU JRRG FRUSRUDWH JRYHUQDQFH JXLGHG E\ WKH FRGH RI FRQGXFW ZLWK WUDQVSDUHQF\ RSHQQHVV WR VFUXWLQ\ DQG D NHHQ VHQVH RI UHVSRQVLELOLW\ WR DOO VWDNHKROGHUV 2Q EHKDOI RI WKH %RDUG RI 'LUHFWRUV H[HFXWLYHV DQG HPSOR\HHV RI 377 &KHPLFDO ZH WKHUHIRUH WKDQN DOO VWDNHKROGHUV ZKLOH SOHGJLQJ WR FRQVWDQWO\ GHYHORS DQG LGHQWLI\ RSSRUWXQLWLHV WR FUHDWH MRLQW EXVLQHVV YDOXHV VR WKDW ZH PD\ JURZ VWURQJ LQ D VXVWDLQDEOH ZD\ ZKLOH IRUJLQJ YDOXH IRU 7KDL VRFLHW\ DQG FRPPLWWLQJ RXUVHOYHV WR DFKLHYLQJ LQWHUQDWLRQDO DFFHSWDQFH

0U 1RQWLJRUQ .DQFKDQDFKLWUD

&KDLUPDQ

0U 9HHUDVDN .RVLWSDLVDO

3UHVLGHQW &(2

Annual Report 2010 PTT Chemical Public Company Limited

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t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

6RXUFHV ,0) :RUOG (FRQRPLF 2XWORRN 8SGDWH -DQXDU\ ,0) 'DWDEDVH 7KH %DQN RI 7KDLODQG IRU tV DQG tV ILJXUHV RI 7KDLODQG

+RZHYHU WKH HFRQRPLF UHFRYHU\ RI LQGXVWULDOL]HG FRXQWULHV VWLO UHPDLQV IUDJLOH LQ DQG LV SUHGLFWHG WR JURZ EHORZ SRWHQWLDO LQ WKH PHGLXP WHUP IURP WR 7KH 86 HFRQRP\ DW SUHVHQW DFFRXQWLQJ IRU RI WKH ZRUOG *'3 LV SURMHFWHG E\ ,0) WR JURZ E\ LQ DJDLQVW LQ EHIRUH H[SDQGLQJ DW DQ DYHUDJH DQQXDO

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

Annual Report 2010 PTT Chemical Public Company Limited

%86,1(66 9$/8( &+$,1

BUSINESS VALUE CHAIN

%XVLQHVV RSHUDWLRQ RI WKH FRPSDQ\ LWV VXEVLGLDULHV DIILOLDWHV DQG WKHLU FDSDFLWLHV *Projects currently under development

Olefins & Shared Facilities

Polymers Products Value Center

â&#x20AC;˘ Olefins (1) â&#x20AC;˘ Mixed C4 â&#x20AC;˘ Pyrolysis Gasoline Cracker Bottom Hydrogen â&#x20AC;˘ Butene-1(2)* â&#x20AC;˘ Utility Jetty & Buffer Tank Farm

â&#x20AC;˘ High Density Polyethylene (HDPE)(3) â&#x20AC;˘ Low Density Polyethylene (LDPE)(4) â&#x20AC;˘ Linear Low Density Polyethylene (LLDPE)(5) â&#x20AC;˘ Polystyrene (PS)(6)

(1) PTTCH production = 1,863,000 tons per year and PTTPE production = 1,025,000 tons per year (2) PTTCH production of Butene-1 and Butadiene = 100,000 tons per year

(3) PTTCH production = 300,000 tons per year and BPE production = 500,000 tons per year (4) PTTPE production = 300,000 tons per year (5) PTTPE production = 400,000 tons per year (6) TSCL production = 90,000 tons per year

EO-Based Performance Products Value Center

Oleochemical Products Value Center

Services & Others

• Ethylene Oxide/Ethylene Glycol (EO/EG)(7) • Ethanolamine (8) • Ethoxylate(9)

• Methyl Ester Fatty Alcohol & Glycerin(10) • Base & Specialty Oleochemicals(11) • Carotenoid(12)*

• Jetty(13) • Utility(14) • Safety & Environmental Services(15) • Maintenance & Engineering(16) • Pipe Line Transportation(17) • Poly Vinyl Chloride (PVC)(18) • Phenol/BPA*(19) • Trading Health & Nutrition Products(20)* • R & D Green Chemicals(21)* • Information and Communication Technology(22)

(7) TOCGC production = 300,000 tons per year and expansion project production = 95,000 tons per year (8) EA production = 50,000 tons per year (9) TEX production = 50,000 tons per year

(10) TOL production = 331,000 tons per year (11) EMERY production = 976,000 tons per year (including MPR*) (12) Bio Spectrum production of Carotenoid (by-production of Methyl Ester used in food coloring)

(13) (14) (15) (16) (17) (18) (19)

TTT PTTUT NPC S&E PTTME EFT VNT production = 280,000 tons per year PPCL production = 200,000 tons per year and Bis-Phenol-A = 150,000 tons per year (20) Bio Creation (21) Myriant (22) PTTICT

Annual Report 2010 PTT Chemical Public Company Limited

MORE GREEN for your better world

MORE WELLNESS for your well-being

MORE KNOWLEDGE for your concerns

MORE PROFITABLE for beneficial growth

&5($7( 9$/8(

What makes us different? At PTT Chemical, we make a sustainable business difference through the "values" created Shareholders' value that comes

not just from profits, but from happiness

of ownership Business partners' value that comes not just from business, but from joint success Employees' value that comes not just from work, but from being the Company's priceless assets Social and environmental value that comes not just from mere co-existence, but from mutual improvement and neighborly care.

Our pledge is that we will relentlessly march toward success-and go beyond with diverse, creative ideas in all processes, apart from responsibility to society, the environment, and other matters improvable for today and tomorrow.

M RE GREEN for your better world

(QYLURQPHQWDO VWHZDUGVKLS PHDQV PRUH WKDQ VLPSO\ ORRNLQJ DIWHU RXU VXUURXQGLQJV EXW PDLQWDLQLQJ WKHLU IHUWLOLW\ DQG SURVSHULW\ 2XU JURZWK PXVW DOVR PD[LPL]H EHQHILW WR WKH HQYLURQPHQW :KLOH PLWLJDWH WKH LPSDFW 7KDW ZD\ RXU ZRUOG ZLO EHFRPH D EHWWHU SODFH WR OLYH

M RE WELLNESS for your well-being

&$5( WKLV ZRUG WKDW 5HIOHFWV RXU GHWHUPLQDWLRQ WKH PRVW WR SURYLGH D EHWWHU TXDOLW\ RI OLIH DQG GHFHQW VWDQGDUG RI OLYLQJ 7KDW V ZK\ 377 &KHPLFDO FDUHIXOO\ FUDIWV SURGXFWV IRU FRQVXPHUV :H NQRZ OLIH JHWV EHWWHU WKURXJK KHDOWK\ FRQVXPHU SURGXFWV ZLWK WKH OHDVW ZDVWH

M RE KNOWLEDGE for your concerns

)XOILO HG WKH SXUVXLW RI NQRZOHGJH DQG YDOXHV HGXFDWLRQ DV ZHOO DV UHVHDUFK DQG GHYHORSPHQW RI LQWHJUDWHG SURGXFWV WR EROVWHU RXU XSVWUHDP UROH 377 &KHPLFDO FRPPLWWHG WR WKLV DPELWLRQ WR PDUFK WRZDUG GHOLYHULQJ EHWWHU OLYLQJ IRU DOO

M RE PROFITABLE for beneficial growth

3URPLVLQJ D EHWWHU UHVXOW LQ GHYHORSLQJ SURGXFW \LHOG 2XU SURGXFWV DUH GHVLJQHG WR DGGUHVV HYHU\ QHHG RI FXVWRPHUV FUHDWH D VXVWDLQDEOH JURZWK DQG PDLQWDLQ D EDODQFH EHWZHHQ HFRQRPLF VRFLDO DQG HQYLURQPHQW

Annual Report 2010 PTT Chemical Public Company Limited

Leading the regional petrochemical industry with manufacturing and marketing strength, PTT Chemical combines management acumen with smart application of technology-resulting in a spectrum of quality and essential chemicals.

7KH %DFNERQH RI 0DQXIDFWXULQJ ([FHOOHQFH

2OHILQV 6KDUHG )DFLOLWLHV

Annual Report 2010 PTT Chemical Public Company Limited

2OHILQV 6KDUHG )DFLOLWLHV 2YHUYLHZ 2OHILQV 3URGXFWLRQ DQG 'LVWULEXWLRQ

As a part of the upstream petrochemical industry, the Company produces and distributes Ethylene and Propylene, known collectively as "Olefins", from natural gas and petroleum product feedstock. The products are supplies to downstream petrochemical operators in the Industrial Estate and to High-Density Polyethylene (HDPE) plants of PTT Chem Group and the Ethylene Oxide/Ethylene Glycol (EO/EG) plant of TOC Glycol Co., Ltd. (TOCGC) - a wholly-owned subsidiary of PTT Chemical (100% of the shares). Given surplus Olefins and attractive prices, the Company exports its outputs to international spot markets. With both natural gas and naphtha serving as feedstock, the Company can adjust its feedstock choices for maximum benefit. As of year-end 2010, its nameplate capacity was 2,888,000 tons per year (2,376,000 tons per year of Ethylene and 512,000 tons per year of Propylene) at the following plants: The gas-based I-1 Olefins Plant with a capacity of 461,000 tons per year of Ethylene and 127,000 tons per year of Propylene The gas and naphtha-based I-4/1 Olefins Plant with a capacity of 515,000 tons per year of Ethylene and 310,000 tons per year of Propylene The gas-based I-4/2 Plant with a capacity of 400,000 tons per year of Ethylene, and 50,000 tons per year of Propylene The PTT Polyethylene Co., Ltd. Olefins Plant (wholly-owned by PTT Chemical, 100% of the shares), running on ethane derived from Unit 6 of PTT's gas separation plant (GSP #6). With a capacity of 1,000,000 tons per year of Ethylene and 25,000 tons per year of Propylene, this plant went on commercial production in December 2010 PTT Chemical also produces and distributes Olefins by-products comprising Mixed C-4, pyrolysis gasoline, tail gas, cracker bottoms, and hydrogen, to domestic customers. In addition, product value addition comes from the Butene-1 project, by - product of Mixed C-4, with a capacity of 100,000 tons per year and Butadiene. Curently, the engineering design has been completed, it is scheduled to commence in the second quarter of 2014.

8WLOLWLHV 3URGXFWLRQ DQG 'LVWULEXWLRQ

Valuing and supporting businesses and activities that strengthen the petrochemical business and enhance a greater integration, PTT Chemical provides key public utilities such as power, electricity, steam, and for industrial usage, consisting of Treated, Potable, and Demineralized water to the Olefins Plants and distribute to downstream plants in concession area and to other companies in Map Ta Phut Industrial Estate. As of year-end 2010, the Company commanded 210 megawatts (MW) of power generation capacity, 650 tons per hour of steam generation, 2,080 cubic meters per hour of industrial water production, and 1,000 cubic meters per hour of sea water reverse osmosis (SWRO). In addition, the Company is planning on an electricity and steam plant (the EPS Project) with a capacity of 112.5 megawatts and 560 tons per hour of steam for the use of productions and expansion. This project is scheduled for start-up in the fourth quarter of 2011. PTT Chemical also runs two jetties of 9,000 and 35,000-Dead Weight Ton (DWT) capacities together with petrochemical buffer tank facilities for its own supply security in case the production is suspended or temporarily shutdown for maintenance. Besides providing product storage, import, and export for its outputs, these facilities also serve the downstream petrochemical group.

3HUIRUPDQFH 2YHUYLHZ The Olefins & Shared Facilities Value Center has consistently developed processing efficiency for competitive costs, which would serve as a firm base for creating opportunities and expanding businesses, with the following hightlights of 2010 : 3URFHVVLQJ (IILFLHQF\ DQG &RPSHWLWLYHQHVV

Improved and installed machinery/equipment while improving plant conditions to reuse energy and lower its processing needs for energy Studied benchmarking of the past year's performance for continued reference in monitoring and processing, as well as improving plants for peer-industry competitiveness Fostered Olefins processing strength by building on feedstock advantages and optimization of facilities; improved processes and key equipment for efficiency Developed sales and marketing capabilities and information systems to plan domestic and international market competition Reduced operating costs by managing feedstock through optimization, managing inventory of feedstock and products, and managing facilities for optimal cost-effectiveness Introduced a variety of software, including Supply Chain Management (SCM) and Systems Applications and Products (SAP), for operating efficiency improvement

Annual Report 2010 PTT Chemical Public Company Limited

PTT Chemical also prepared for future growth while seeking opportunities to expand its capacities which require low capital cost and leverage the technical capability, the readiness of the current infrastructure, as well as personnel's expertise, to lead to maximum operating efficiency. The Company continued to implement the strategic action plan drawn up to tackle the economic crisis from last year, namely a resilient marketing policy, inventory management, and production cost reduction. All of Which helps the company maintain its competitive position.

$VLDQ 2OHILQV 0DUNHW 2YHUYLHZ This year's market proved better than expected, with average prices moderately higher than in 2009. Yet, the market still remained volatile. Ethylene prices remained high during the year because of maintenance shutdowns and capacity reduction of the crackers in the region, coupled with some production issues during the first quarter, which took 1.02 million tons out of the market.* Meanwhile, oil and naphtha prices were on the rise benefiting for Olefins prices during the quarter. From the second quarter to the third, the Company was impacted by oversupply in the world market due to the start up of many new Asian Olefins Plants, including some from the Middle East. Meanwhile, market demand began to slow down, notably in China, due to its government's economic measures. These factors taking effect brought down Ethylene market prices. However, the fourth quarter saw recovering oil and feedstock prices, planned production shutdowns of regional producers, and rising market demand with the world economic recovery, coupled with manufacturers' needs to produce goods in time for Christmas and New Year. These proved instrumental to Ethylene market prices returning to a high range. For the year, Ethylene commanded an average price of over USD 1,000 per ton, which continued to the year-end, enabling naphtha-based Ethylene producers to make more profits, with the spread between Ethylene and naphtha prices reaching USD 363 per ton, or USD 46 per ton higher than the previous year.**

The Asian market situation for Propylene in 2010 resembled that of Ethylene fairly tighter because of a disruption to the Propylene unit's on-purpose processing among the six Asian Propylene plants with a combined capacity of about 1,200,000 tons per year by maintenance shutdowns and process problems. This, combined with the shutdown and capacity reduction of crackers, took 644,000 tons of Propylene out of the market.* In addition, as a result of many countries' economic stimulus packages, propylene demand remained high. Finally, oil and feedstock prices were on the rise throughout the latter half of 2010. All these contributed to Asian Propylene prices being higher than those of Ethylene, with the spread between Propylene and naphtha for the year averaging USD 419 per ton, or USD 83 per ton higher than that of 2009.** Note that petrochemical tariff reduction under AFTA, in effect since 1 January 2010, did not affect the Company's overall business because of its establised customer base, which prevent the Company from competing with imported Olefins. Together with, its downstream products set for export derived benefited fully from zero tariff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

* Source ** Source

: CMAI : ICIS

Annual Report 2010 PTT Chemical Public Company Limited

We treat our customers as our Partners and together we grow, side by side. As an integrated upstream and downstream petrochemical producer, we continue to strive for success by strengthening our portfolio with a wide range of products that fulfill every customer's needs.

$ %ULJKW )XWXUH 'ULYHQ

3RO\PHUV 3URGXFWV

Annual Report 2010 PTT Chemical Public Company Limited

3RO\PHUV 3URGXFWV 9DOXH &HQWHU 2YHUYLHZ An essential part of the Olefins Value Chain, Polymers Products are very close to people's life because they are processed into everyday consumer products, essential goods for both the industrial sector and the agricultural sector, and modern amenities. Therefore, this value chain represents a business that PTT Chemical is very proud of. A wide range of Plastics Polymers in which the Company has invested fall into these categories. High Density Polyethylene (HDPE): Under the InnoPlus brand, PTT Chemical's HDPE is produced with a capacity of 250,000 tons per year and another 250,000 tons per year through Bangkok Polyethylene Plc (BPE) - a wholly owned subsidiary. In addition, the Company has undertaken capacity expansion by 50,000 tons per year, and BPE by 250,000 tons per year, with start-ups due for the first quarter of 2011. Both companies rely on the processing technology of Mitsui Chemical Inc. of Japan, capable of producing diverse types of HDPE, including plastic bags, drinking water bottles, milk bottles, lubricant gallons, home appliances, toys, carbonated drink crates, showcase boxes, ropes, fishing nets and seines, cables, electrical wire pipes, and telecommunication cables. Linear Low Density Polyethylene (LLDPE): is produced by a subsidiary company - PTT Polyethylene Co., Ltd. (PTTPE), with a capacity of 400,000 tons per year, commercial y operational since January 2010 through the Unipol processing technology, a US patent of Univation. A variety of LLDPE outputs are used in the packaging industry, including shrink film, stretch film, heavy-duty bags, garment bags, frozen-food bags,water pipes, and electrical wire or cable coating. Low Density Polyethylene (LDPE): is produced by PTTPE with a capacity of 300,000 tons per year. The facility is undergoing process of commissioning and is expected to commence commercial operation in the first quarter of 2011 using the Tubular Reactor process technology, a Basell (Germany) patent, for producing molding containers. Polystyrene (PS): Also known as thermoplastics, Polystyrene can be melted and molded. Thai Styrenics Co., Ltd. (TSCL), (PTTPE - a wholly owned subsidiary of PTTCH hold 100% shares) is the operator with a capacity of 90,000 tons per year of GPPS (General Purpose Polystyrene) and HIPS (High Impact Polystyrene). GPPS, characterized by its clarity and low cost, is suitable for the production of office appliances and disposable kitchenwave and utensils. HIPS, offering high impact strength, is commonly used in the production of electrical appliances and toys. The product is distributed under the "Diarex" trademark.

3RO\PHUV 3URGXFWV 9DOXH &HQWHU 3HUIRUPDQFH Since Polymers production forms a capital-intensive downstream petrochemical industry with price cycles tracking crude oil prices, production cost control and a firm customer base are crucial. The Value Center has therefore not only continually improved its processing efficiency for competitive costs, but has also focused on product development to respond to demand while keeping up with customers' needs and expanding commercial opportunities to accommodate its own rising capacities. The performance highlights this year are: 3URGXFWLRQ (IILFLHQF\ 3URFHVVHV

Use of Ethylene as the primary feedstock for Olefins Plant Energy-saving improvement Laying of a Styrene Monomer (SM), core feedstock for PS, pipeline to accommodate SM imports to raise the capacity for SM cost management to a competitive level Installation of a Reverse Osmosis (RO) System to purify treated waste water from the plant into clarified water for use in the process of cooling water system to in turn cut effluents and maximize the integrated use of natural resources based on Eco-Efficiency application Installation of a Bag Filter system, which is highly efficient for the prevention of air pollutants resulting from product transfer to the silo Full execution of Supply Chain Management (SCM) 0DUNHWLQJ DQG 'LVWULEXWLRQ ,PSURYHPHQW

Together with PTT Plc, the Company formed PTT Polymer Marketing Co., Ltd. (PTTPM), for the marketing and distribution of Polymers and all by-products of PTT Chem Group. Today, PTTPM boasts more than 120 agents worldwide, with representative offices in China and Vietnam along with one subsidiary in the United Arab Emirates to expand its marketing network and achieve more efficiency in customer service and comprehensive customer relation management in addition to Polymers products distribution expansion to the market. The Company has assigned PTT Polymers Logistics Co., Ltd. (PTTPL), of PTT Group to handle warehouse management and product logistics of PTT Group's Polymers products. Running at full capacity, PTT Chemical is confident that the Polymers Business Value Chain of the Group wil augment its marketing strength and distribution and logistics cost effectiveness. All of which strength the Company's ability to reach the customers in over 80 countries worldwide.

Annual Report 2010 PTT Chemical Public Company Limited

3URGXFW 9DOXH $GGLWLRQ

One of the keys to achieve sustainable growth is the Company's innovative approach to customer care with a focus on Co-Creation with customers in introducing new products to the market or adding product value. Development of innovative products jointly with customers enhances product values for the mutual benefit of upstream and downstream operators. A case in point is the joint effort with a manufacturer of lubricant gallons which relies on HD68000B InnoPlus to make lighter containers by using less Polymers while retaining or increasing container strength. Another is the application of HD3520C InnoPlus to make lighter and thinner drinking water bottle caps but with the same sturdiness and safety of application.

3RO\PHUV 0DUNHW 2YHUYLHZ The global economy this year continued its recovery, as did petroleum and petrochemical markets. Feedstock prices rose by 30% over 2009, squeezing the margins of LLDPE and HDPE producers over the same period, whereas the margins of PP, PS, and LLDPE producers headed the other way in 2010. The average price of LDPE for the year was $1,450 per ton; LLDPE, $1,290 per ton; HDPE, $1,220 per ton; PP, $1,320 per ton; HIPS, $1,360 per ton; and GPPS, $1,470 per ton.* Polymers prices stayed fairly high in the first quarter because of several Asian plants' seasonal shutdowns and turnarounds, coupled with reduced exports from the Middle East to Asia. On the other hand, the US and European markets were tight in supply through the year, with feedstock costs also remained high, thus badly depressing margins for regional operators. As a result, some producers had to lower their capacities and constantly tried to hike their prices-in short, a golden profit-making period for Asian producers. As for the Thai market, the domestic economy of 2010 as a whole expanded by a healthy 7.8%, a far cry from last year. With the economy growing, domestic plastic demand took off. Thai exports, the driver of the economy, boasted Baht 200,000 mil ion in total export value (32% growth), which is expected to continue through 2011. However, demand for Thai exports is likely to slow down with developed countries stil facing economic crises. Fortunately, Thai exports still enjoy support in demand coming from emerging countries to replace that from developed countries. The year also saw a shrink of 6-8% in growth coming from the manufacturing sector. Stil , PE, PP, and PVC for food containers managed steady expansion in demand. Thailand's main export destinations are China, Hong Kong, and Vietnam. * Source: ICIS

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

Annual Report 2010 PTT Chemical Public Company Limited

To cater to consumers' needs, we pioneered the expansion of our products and capacities to trailblaze the market. By supplementing value to Ethylene Oxide and related products, we have reduced cost on foreign exchange trading while supporting sustainable development.

0D[LPL]LQJ 9DOXH &UHDWLRQ

(2 %DVHG 3HUIRUPDQFH 3URGXFWV

Annual Report 2010 PTT Chemical Public Company Limited

(2 %DVHG 3HUIRUPDQFH 3URGXFWV 9DOXH &HQWHU 2YHUYLHZ To raise the value of Olefins and address the demand of industrial groups and consumers more comprehensively, PTT Chemical recognizes the need to make new domestic products with high value added, import substitution, and greater competitiveness for the benefit of the Thai petrochemical industry. As a result, the Company has turned to EO-Based Performance Products : Ethylene Oxide/Ethylene Glycol (EO/EG): Operated by TOC Glycol Co., Ltd. (TOCGC), a wholly owned subsidiary, the plant yields EO and EG in the form of Mono Ethylene Glycol (MEG), a primary product and feedstock for polyester fiber for the textile industry and clear-plastic bottle (PET) industry. Today, TOCGC is capable of producing 300,000 tons per year of MEG from Ethylene as feedstock. As for the capacity expansion plan to 95,000 tons per year, this is still under suspension ordered by the Central Administrative Court concerning the Map Ta Phut case to complete EIA and HIA requirements. TOCGC's policy is to primarily distribute EO/EG to domestic operators at competitive prices and under commercial conditions, supplying products continuously and rapidly while also focusing on maintaining and raising its domestic market share as well as maximizing product value addition by investigating market development to constantly invest more in downstream businesses. Besides focusing on maintaining and raising its domestic market share, TOCGC strives to maintain its overseas customer base and nurture relations to accommodate exports as a result of future capacity expansion. Ethanolamines: Operated by Thai Ethanolamines Co., Ltd. (EA), a wholly owned subsidiary of PTT Chemical. The core products are Monoethanolamine (MEA), Diethanolamine (DEA), and Triethanolamine (TEA), based on EO derived from TOCGC, with a total capacity of 50,000 tons per year. The products find applications in the production of shampoos, conditioners, fabric softeners, pharmaceutical product, the cement industry, among others. As for product distribution, EA values sale to domestic customers by doing its best to expand its domestic market shares through direct sale to bulk customers and through distribution agents to retail domestic customers. EA maintains its traditional overseas customer base while searching for new regional markets through maintaining and fostering relationships with customers and distribution agents.

Ethoxylate: Operated by Thai Ethoxylate Co., Ltd. (TEX), a joint venture with Cognis Thai Ltd. (an affiliate of Cognis Group, the world's leading specialty chemical producer). [Note that on 10 December 2010, BASF took over Cognis's business.] Its feedstock is EO from TOCGC and Fatty Alcohol from Thai Fatty Alcohol Co., Ltd. (TFA). Ethoxylate is a raw material for shampoos, dish-washing liquids, and assorted washing liquids. With a nameplate capacity of 50,000 tons per year, TEX's is the first plant to produce Ethoxylate in Thailand. In marketing and distribution, TEX focuses on maintaining and raising domestic market shares together with import substitution while maintaining overseas customers and searching for new markets since the regional manufacturing base yields personal-care and home-care products-to optimize business opportunities. Products are also exported to Asia and Europe.

(2 %DVHG 3HUIRUPDQFH 3URGXFWV 9DOXH &HQWHU 3HUIRUPDQFH The Value Center is determined to raise its processing efficiency for international competitiveness, including the expansion of processing capability to accommodate domestic market growth, with the following highlights in 2010: 3URFHVVLQJ (IILFLHQF\ ,PSURYHPHQW

Improvement of energy saving and energy conservation, including less dependence on steam supply shortfall needed from a steam plant, more circulation of thermodynamic substances with latent heat values for process heat transfer, search for processing equipment and reduction of unnecessary electricity requirements, and improved timing to trim electricity peak loads for large water pumps Achievement of lower operating costs through feedstock and product inventory management (QKDQFHPHQW RI &RPSHWLWLYHQHVV

Commitment to building a long-term customer base through key account management Increase of revenue-generating ability by focusing on proactive marketing and distribution through the export of diverse products and maintaining domestic market shares and import substitution

Annual Report 2010 PTT Chemical Public Company Limited

0DUNHW 2YHUYLHZ Since MEG is a commodity product also used as feedstock for polyester, in turn the feedstock for the textile industry and the clear-plastic bottle industry, its market situation tracks that of the polyester industry, particularly the market in China (one of the biggest users and importers of MEG) and other Asian countries that still need MEG imports to constantly meet market demand. As for the overall Ethanolamine market, 2010 belonged to the business down cycle, resulting in a business slowdown as well as a demand slowdown for operators in related industries, including personal-care products, anti-weed chemical products, and construction materials. As a result, Ethanolamine prices dropped from the previous year, but look to improve with the rising demand of 2011. As for marketing and distribution of the EO groups, both domestic and international, most major producers of the world-including Optimal, Ineos, and Dow-are based in the Middle East, with a long history of business as well as good relations with customers and distribution agents throughout the world. In addition, they command labor and feedstock cost advantages. Capacities will be expanded for competitive advantage and optimum responses to MEG demand in the world market. Today, most major producers export MEG to Thailand through direct sale and agents. All suppliers strive to keep major customers and part of the domestic market share. Still, in 2010, TOCGC's domestic market share was quite a healthy 65%.

7KH 9DOXH &HQWHU V EXVLQHVV ZKLFK IRUPV DQ LQWHUPHGLDWH FKHPLFDO LQGXVWU\ LV FDSDEOH RI FRPSUHKHQVLYHO\ H[SDQGLQJ WR VSHFLDOW\ FKHPLFDOV $SDUW IURP PD[LPL]LQJ YDOXHV RI LWV SURGXFWV WKH YDOXH FHQWHU IRFXVHV RQ SUHYHQWLQJ HQYLURQPHQWDO SUREOHPV DW DQ HDUO\ VWDJH RI WKH FKDLQ WKURXJK FDUHIXO SODQW GHVLJQ DQG FRQVWUXFWLRQ RQ D SDU ZLWK LQWHUQDWLRQDO RSHUDWRUV HQHUJ\ VDYLQJ DQG SROOXWLRQ FRQWURO WR FRQIRUP WR WKH ODZ ZKLOH EHLQJ IXOO\ FRPPLWWHG WR DFKLHYLQJ VXVWDLQDEOH JURZWK

Annual Report 2010 PTT Chemical Public Company Limited

We incorporate environmental stewardship into our business-from upstream to downstream. While adding Value to our products. And we will not stop here. Our ultimate goal is to become a global business leader with a global recognition of a leadership in contributing to sustainable development.

7UXO\ *UHHQ 6ROXWLRQV 2OHRFKHPLFDO 3URGXFWV

Annual Report 2010 PTT Chemical Public Company Limited

2OHRFKHPLFDO 3URGXFWV 9DOXH &HQWHU 2YHUYLHZ Because Thailand and Southeast Asia have suitable terrains and climate for oily plants with ideal potential for processing into chemicals, and because today's needs for alternative energy and environmentally friendly products are continuingly increasing, PTT Chemical foresees a need for the Oleochemical business based on natural raw materials like palm oil, palm kernel oil, vegetable oil, or animal fats. The resulting Oleochemicals can yield various downstream products used in the personal care industry, pharmaceutical industry, etc. The Oleochemical Products Value Center consists of Thai Oleochemicals Co., Ltd. (TOL) (a wholly owned subsidiary), Thai Fatty Alcohols Co., Ltd. (TFA) (TOL's wholly owned subsidiary), and Emery Olechemicals (M) Sdn. Bhd. (a 50%-50% joint venture between PTT Chem Group companies-namely PTT Chemical International Pte. Ltd. and Sime Darby Plantation Co. (Malaysia)). These collaboration add capability and integrate the product processing and sale businesses for new markets in Asia, Europe, and the US. Below are the Value Center's key products. Methyl Ester: TOL operates a 200,000-ton-per-year plant with outputs of basic Oleochemicals derived from blending Methyl Ester (B100) with diesel to obtain biodiesel (B3 or B5) of a European standard (EN14214) that gives higher efficiency to diesel (particularly its lubricating quality), engine combustion efficiency, longer engine life, and lower pollution or environmental impacts. PTT Chemical also invested in Bio Spectrum Co., Ltd., with the Inventa Group of Singapore at a ratio of 75% to 25% to produce Carotenoid, an extract from Methyl Ester used as a food coloring additive. Now filing for construction approval, the plant is due for completion in 2012. Fatty Alcohols: TFA is the sole producer in Thailand with a capacity of 100,000 tons per year of these Oleochemical products-key precursors to personal-care products-which can substitute a staggering cost of imports. A part of fatty alcohols also can be used as Ethoxylate feedstock. Glycerin: This is a by-product obtained from Oleochemical production. It is especially useful in the pharmaceutical industry, food industry, and personal-care industry. The production capacity is 31,000 tons per year. Fatty Acids: These are basic Oleochemical product of Emery, Malaysia, with applications in the personal-care industry, soaps, and cosmetics industry.

Specialty Oleochemicals: Obtained from the processing of basic Oleochemicals, these products find applications in assorted industries, including cleaning-agent, personal-care, and plastic industries. Specialty Oleochemicals, including Triacetin, Ozone Acid, plastics additives, and chemicals used for oil well drilling, can be produced by Emery. In addition, the Multi-Purposed Reactor (MPR) project with a capacity of 14,000 tons per year - operated by TFA (TOL holds 100% shares) has been sold to Emery Oleochemicals (in which CH Inter holds 50% equity)

2OHRFKHPLFDO 3URGXFWV 9DOXH &HQWHU 3HUIRUPDQFH Valuing quality and standard systems, which are essential foundations for its operations, PTT Chemical consistently implemented process quality improvement through efficiency improvement and processing cost reduction together with confidence bolstering for products this year, as highlighted below: 3URFHVVLQJ (IILFLHQF\ ,PSURYHPHQW

Developed the quality and services of Fatty Alcohols, including investigation of development and investment in downstream products under the specialty Oleochemical group. Research into product value addition, for instance, through the production of white Methyl Ester and classification of fatty alcohols into grades in response to customers' needs. Improved processing efficiency by developing C16/18 fatty alcohol processes for direct processing at the fractionating unit, thus shortening the production process. Improved energy-saving. Strived for operating cost reduction by sourcing diverse raw materials with low costs, including Palm Fatty Acid Distillate (PFAD) and palm stearin, to produce Methyl Ester; TOL also looked into buying palm oil from a greater variety of producers and using other raw materials. &RPSHWLWLYHQHVV DQG 0DUNHWLQJ 5HODWHG $FWLYLWLHV

Increased revenue-generating ability since Methyl Ester played a key role in high domestic-market shares; developed assorted grades to address customers' needs; incidentally, fatty alcohols and glycerin contribute to an international marketing and distribution network. Granted certification of ISO 14000 (Environmental Management Systems, EMS), TIS 18000, and OHSAS 18000 (Occupational Health and Safety Assessment System).

Annual Report 2010 PTT Chemical Public Company Limited

Recieve Certification of GMP (Good Manufacturing Practice), a key basic system for food safety, and HACCP (Hazard Analysis and Critical Control Point), which enabled TOL to sell glycerin in the pharmaceutical industry, food industry, and personal-care industry; the certificates also extended to fatty alcohols and glycerin certified by the Halal Standard Institute of Thailand. Chose alternative raw materials for its processes, including coconut oil for fatty alcohol processes to not only save production costs, but also ease occasional raw-material shortages.

0DUNHW 2YHUYLHZ In view of the steady rise in the oil price worldwide, the Ministry of Energy's clear goal for alternative-energy consumption led to a policy for B2 (that is, 98% Diesel and 2% Methyl Ester by volume) enforced nationwide on 1 February 2008 and a planned goal for exclusively B5 biodiesel (95% Diesel and 5% Methyl Ester) in the second quarter of 2011, which implied a need for about 800,000 tons per year (or 2.5 million liters per day) of Methyl Ester. However, today there are many additional domestic biodiesel producers, which causes a biodiesel glut amid heated competition. Similarly, overseas markets saw lower biodiesel demand than supply capacity. Add to this scenario the highly volatile Methyl Ester situation in the world market stemming from a dramatic rise in palm oil and soybean oil prices due to climate change, thus lowering agricultural outputs than expected. The higher the raw material prices, the higher the Methyl Ester prices. The market for Fatty Alcohols improved from the trough of 2009, with demand expected to approach the capacity in 2011. The rising demand came mainly from Mid-Cut Alcohols for the personal-care industry and from Long-Chain alcohols for industrial applications-their higher demand reflected the improving global economy. In any case, the total capacity stil outstripped market demand. Key factors to the Fatty Alcohol market are the volume and price of raw materials (palm kernel oil and coconut oil). The price of the former rose sharply (70-80%) in the past year and wil remain high in 2011, a fact which has caused certain producers to trim their capacities or suspend their production because of financial problems and inventory management problems.

A by-product of Methyl Ester and Fatty Alcohols, Glycerin bears the direct impact of the Methyl Ester and Fatty Alcohol markets stemming from the increasing worldwide popularity of biodiesel and the policy for mandatory use of biodiesel in many countries, which has steadily raised the market supply of Glycerin, thus depressing its price. However, since the price recorded such a big jump in the fourth quarter of 2010, it is expected to come down to about the same level of 2010 by the first quarter of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

Annual Report 2010 PTT Chemical Public Company Limited

Our commitment to service excellence drives our enthusiastic, competent people. Not contented with merely good services, we are prepared to forge ahead along with customers to bring prosperity to Thailand's petrochemical industry through integrated services.

6WDQGDUGL]HG +LJK 3HUIRUPDQFH

6HUYLFHV 2WKHUV

Annual Report 2010 PTT Chemical Public Company Limited

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

INTERNATIONAL BUSINESS

Building on past successes, PTT Chemical aims to hit its stride and identify new enterprises in new markets, leveraging competitive strengths and technical capability.

,QWHUQDWLRQDO %XVLQHVV 2Q D 'LVWDQW 0LVVLRQ

377 &KHPLFDO 3OF HVWDEOLVKHG 377 &KHPLFDO ,QWHUQDWLRQDO 3ULYDWH /LPLWHG LQ 6LQJDSRUH IRU JUHDWHU LQYHVWPHQW SRWHQWLDO DQG LQ VXSSRUW RI RYHUVHDV EXVLQHVVHV ,Q WKLV FRPSDQ\ LQ WXUQ IRUPHG 377 &KHPLFDO ,QWHUQDWLRQDO $VLD 3DFLILF 52+ /WG DV D UHJLRQDO RIILFH LQ 7KDLODQG WR SODQ GHYHORSPHQW DQG VHDUFK IRU QHZ EXVLQHVV RSSRUWXQLWLHV E\ IRFXVLQJ RQ H[SDQGLQJ EXVLQHVVHV WR RWKHU FRQWLQHQWV ([HFXWLRQ E\ ,QWHUQDWLRQDO %XVLQHVV

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

Annual Report 2010 PTT Chemical Public Company Limited

Innovation leads our way in identifying mutual values between business and society. To us, innovation comes from thinking, learning, and acting for a better future-starting with each one of us.

SHAPING AN INNOVATIVE SOCIETY

Annual Report 2010 PTT Chemical Public Company Limited

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

&65 )UDPHZRUN RI 377 &KHP *URXS

2UJDQL]DWLRQDO *RYHUQDQFH DQG /HDGHUVKLS +XPDQ 5LJKWV /DERU 5LJKWV (QYLURQPHQWDO 0DQDJHPHQW )DLU 2SHUDWLQJ 3UDFWLFHV 6RFLDO ,QYHVWPHQW DQG &RPPXQLW\ 'HYHORSPHQW 6XSSO\ &KDLQ 0DQDJHPHQW 3URGXFW 6WHZDUGVKLS &65 5HSRUWLQJ 6WDNHKROGHU (QJDJHPHQW

,Q DGGLWLRQ WKH JURXS KDV WDNHQ SDUW LQ D VXVWDLQDEOH GHYHORSPHQW QHWZRUN DQG KDV DFKLHYHG FHUWLILFDWLRQV IURP UHSXWDEOH LQVWLWXWLRQV QDPHO\ *OREDO 5HSRUWLQJ ,QLWLDWLYHV 8QLWHG 1DWLRQV *OREDO &RPSDFW DQG 5HVSRQVLEOH &DUH

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

Annual Report 2010 PTT Chemical Public Company Limited

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

([SDQVLRQ RI JUHHQ DUHDV 3ODVWLF IODSSHG VDFNV DJDLQVW ODQGVOLGHV 5D\RQJ ZDWHU UHVRXUFH PDQDJHPHQW (PHUJHQF\ $VVLVWDQFH ,Q PDQ\ SURYLQFHV LQ 7KDLODQG IDFHG VHYHUH IORRGV 377 &KHP *URXS WKHUHIRUH FRQGXFWHG D FDPSDLJQ WR HQVXUH WKDW RXU HPSOR\HHV GR WKHLU SDUW WR KHOS VRFLHW\ XQGHU WKH 6KDULQJ IRU )ORRG 9LFWLPV 3URMHFW XQGHUWDNHQ WKURXJK SURMHFWV VXFK DV 5HKDELOLWDWLRQ RI IORRG YLFWLPV .KRUDW UHVLGHQWV XQLWH WR FRPEDW IORRGV 5HVLGHQWV DQG SXEOLF VHFWRU XQLWH WR FRPEDW IORRGV MRLQWO\ ZLWK 0&27 0DVV &RPPXQLFDWLRQ 2UJDQL]DWLRQ RI 7KDLODQG

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

Annual Report 2010 PTT Chemical Public Company Limited

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

Annual Report 2010 PTT Chemical Public Company Limited

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

2+6$6 7,6 0DQDJHPHQW 6\VWHP 377 &KHP *URXS KDV SDLG DWWHQWLRQ WR VDIHW\ PDQDJHPHQW E\ LQWURGXFLQJ WKH 2+6$6 7,6 V\VWHP WR WKH EXVLQHVV SURFHVVHV IRU DOO DORQJ 6DIHW\ SODQV DQG DFWLYLWLHV UHVXOW IURP WKLV 2+6$6 7,6 0DQDJHPHQW 6WDQGDUG ZKLFK HQFRPSDVVHV ZRUNSODFH ULVN DVVHVVPHQW OHDGLQJ WR VDIHW\ SODQV WR PLQLPL]H RU FRQWURO ULVNV WR DFFHSWDEOH OHYHOV PRQLWRULQJ DQG DVVHVVPHQW RI SHUIRUPDQFH 7KH PDQDJHPHQW V\VWHP LV UHYLHZHG E\ H[HFXWLYHV IRU FRQWLQXRXV LPSURYHPHQW %HKDYLRU %DVHG 6DIHW\ %%6

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

Annual Report 2010 PTT Chemical Public Company Limited

&RPSDQ\ ,QIRUPDWLRQ 1DPH ,QLWLDO :HEVLWH 5HJLVWHUHG 1XPEHU 5HJLVWHUHG &DSLWDO 3DLG XS &DSLWDO )LUVW 'D\ 7UDGH RQ WKH 6(7 (VWDEOLVKPHQW %XVLQHVV 6WUXFWXUH DQG 9DOXH &KDLQ 1XPEHU RI (PSOR\HHV +HDG 2IILFH $GGUHVV &RUSRUDWH *RYHUQDQFH 6HFUHWDULDO ,QYHVWRU 5HODWLRQ , %UDQFK , %UDQFK -HWW\ DQG %XIIHU 7DQN )DUP %UDQFK 5DFKQL\RP 5RDG %UDQFK 3DNRUQ 6RQJNUR 5DGK 5RDG %UDQFK

377 &KHPLFDO 3XEOLF &RPSDQ\ /LPLWHG 377&+ ZZZ SWWFKHPJURXS FRP %DKW FRPSULVLQJ RI RUGLQDU\ VKDUHV DW SDU YDOXH RI %DKW HDFK $V RI 'HFHPEHU

%DKW $V RI 'HFHPEHU

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

5HIHUHQFHV 6HFXULWLHV 5HJLVWUDU 5HJLVWUDU DQG 'HEHQWXUH +ROGHUV 5HSUHVHQWDWLYH 5HJLVWUDU $XGLWRU /HJDO $GYLVRUV

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

Annual Report 2010 PTT Chemical Public Company Limited

0DQDJHPHQW V 'LVFXVVLRQ DQG $QDO\VLV )LQDQFLDO 5HVXOW IRU WKH ILVFDO \HDU ([HFXWLYH 6XPPDU\ ,Q WKH ILVFDO \HDU 377 &KHPLFDO 3XEOLF &RPSDQ\ /LPLWHG WKH &RPSDQ\ RU 377&+ DQG LWV VXEVLGLDULHV UHSRUWHG QHW SURILW RI %DKW PLO LRQ XS IURP %DKW PLO LRQ RU 7KH RSHUDWLQJ UHVXOWV RI WKH &RPSDQ\ DQG LWV VXEVLGLDULHV DUH VKRZQ EHORZ &RPSDULQJ DQG RSHUDWLQJ UHVXOWV 8QLW 0LOOLRQ %DKW

8QLW 0LOOLRQ %DKW

6DOHV (%,7'$ 1HW 3URILW %DVLF (DUQLQJ 3HU 6KDUH %DKW

&KDQJH

,Q &UXGH RLO SULFH 'XEDL ZDV UHFRUGHG DW 86' %%/ XS IURP WKDW RI RI 86' %%/ GXH PDLQO\ WR JOREDO HFRQRPLF UHFRYHU\ 7KLV UHVXOWHG LQ ULVH LQ QDSKWKD SULFH WR 86' WRQ ZKLFK FRQVHTXHQWO\ SXVKHG HWK\OHQH SULFH WR ULVH WR 86' WRQ DQG +'3( SULFH WR ULVH WR 86' WRQ &RVW 3XVK (IIHFW 1HYHUWKHOHVV D KLNH LQ +'3( SULFH ZDV DW D VORZHU SDFH WKDQ WKDW RI QDSKWKD SULFH WKXV +'3( 1DSKWKD VSUHDG PDUJLQ LQ ZDV GRZQ WR 86' WRQ

7KH &RPSDQ\ KDV LPSOHPHQWHG VHYHUDO LQYHVWPHQW SURMHFWV ZLWK SURMHFW SURJUHVV DV RI 'HFHPEHU GHWDLOV DUH DV IROORZHG 7R (QKDQFH WKH &RPSHWLWLYHQHVV 2/(),16 6+$5(' )$&,/,7,(6 3URMHFW 'HVFULSWLRQ 3URJUHVV

(WKDQH &UDFNHU 3URMHFW XQGHU 377 3RO\HWK\OHQH &R /WG 3773( KROGLQJ E\ 377&+ $Q HWK\OHQH SODQW ZLWK FDSDFLW\ RI WRQV SHU \HDU SURYLGHG HWKDQH E\ 377 &2' RQ 'HFHPEHU

7R LQWHJUDWH LQWR GRZQVWUHDP EXVLQHVVHV DQG UHODWHG EXVLQHVVHV WR GLYHUVLI\ WKH LQYHVWPHQW ULVNV 32/<0(56 352'8&76 3URMHFW 'HVFULSWLRQ 3URJUHVV 3URMHFW 'HVFULSWLRQ 3URJUHVV

+'3( ([SDQVLRQ XQGHU %DQJNRN 3RO\HWK\OHQH 3OF %3(

7R H[SDQG +'3( FDSDFLW\ IURP WRQV SHU \HDU WR WRQV SHU \HDU &2' RQ -DQXDU\ //'3( DQG /'3( SURMHFW XQGHU 377 3RO\HWK\OHQH &R /WG 3773( KROGLQJ E\ 377&+ //'3( SODQW ZLWK FDSDFLW\ RI WRQV SHU \HDU /'3( SODQW ZLWK FDSDFLW\ RI WRQV SHU \HDU //'3( &2' RQ -DQXDU\ /'3( &2' RQ )HEUXDU\

27+(56 3URMHFW 'HVFULSWLRQ 3URJUHVV

%LV 3KHQRO $ %3$ 3URMHFW XQGHU 377 3KHQRO &R /WG 33&/ KROGLQJ E\ 377&+ $ %LV 3KHQRO $ SODQW ZLWK FDSDFLW\ RI WRQV SHU \HDU 'XULQJ FRPPLVVLRQLQJ

Annual Report 2010 PTT Chemical Public Company Limited

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

3URGXFW SULFH IHHG VWRFN SULFH DQG SURGXFW WR IHHG PDUJLQV 8QLW 07 1$3+7+$ &)5 6,1* (7+</(1( 6 ( $6,$ (7+</(1( 073 3523</(1( 6 ( $6,$ 3523</(1( 073 +'3( ),/0 6($ 0(* 6($ //'3( 6($ &)5 6($ /'3( &)5 6( $6,$ +'3( 0236 0(* (7+</(1( (7+</(1( 0236 3523</(1( 0236

8QLW 86' WRQ 4

3URGXFWLRQ (IILFLHQFLHV 'HWDLOV RI SURGXFWLRQ YROXPHV FRPSDUHG WR WKDW RI DUH DV IROORZV ,Q ROHILQV SURGXFWLRQ YROXPHV ZHUH WRQV GRZQ IURP WRQV RU GRZQ GXH WR ROHILQV SODQWV VKXWGRZQV DV IROORZV 2OHILQV SODQW , SODQQHG VKXWGRZQ IRU PDLQWHQDQFH IRU GD\V )HE $SU

2OHIOH[ XQLW RI ROHILQV SODQW , SODQQHG VKXWGRZQ IRU PDLQWHQDQFH IRU GD\V )HE $SU

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

Annual Report 2010 PTT Chemical Public Company Limited

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

)[ *DLQ /RVV

6KDUH RI *DLQ IURP ,QYHVWPHQW (DUQLQJ WR 0LQRULW\ &RUSRUDWH 7D[ 1HW 3URILWV (DUQLQJV 3HU 6KDUH %DKW 6KDUH

'LII

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

Annual Report 2010 PTT Chemical Public Company Limited

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

&XUUHQW DVVHWV GLYLGHG E\ FXUUHQW OLDELOLWLHV (%,7'$ GLYLGHG E\ WRWDO UHYHQXH H[FOXGH SURILWV ORVVHV IURP H[FKDQJH UDWHV DQG HTXLW\ LQ QHW LQFRPH RI VXEVLGLDULHV DVVRFLDWHG FRPSDQLHV 1HW SURILW GLYLGHG E\ WRWDO UHYHQXH H[FOXGH SURILWV ORVVHV IURP H[FKDQJH UDWHV DQG HTXLW\ LQ 1HW LQFRPH RI VXEVLGLDULHV DVVRFLDWHG FRPSDQLHV

1HW SURILW GLYLGHG E\ DYHUDJH WRWDO DVVHWV 1HW SURILW GLYLGHG E\ DYHUDJH WRWDO VKDUHKROGHU V HTXLW\ ,QWHUHVW %DUULQJ 'HEW GLYLGHG E\ VKDUHKROGHU V HTXLW\ ,QWHUHVW %DUULQJ 'HEW QHW IURP FDVK DQG FDVK HTXLYDOHQW DQG FXUUHQW LQYHVWPHQWV GLYLGHG E\ VKDUHKROGHU V HTXLW\ ,QWHUHVW %DUULQJ 'HEW QHW IURP FDVK DQG FDVK HTXLYDOHQW DQG FXUUHQW LQYHVWPHQWV GLYLGHG E\ (%,7'$

Annual Report 2010 PTT Chemical Public Company Limited

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

Annual Report 2010 PTT Chemical Public Company Limited

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

Annual Report 2010 PTT Chemical Public Company Limited

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

Annual Report 2010 PTT Chemical Public Company Limited

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

Annual Report 2010 PTT Chemical Public Company Limited

6KDUHKROGLQJ LQ 6XEVLGLDULHV $IILOLDWHV DQG 5HYHQXHV 6WUXFWXUH 100%

BPE

100%

PTTPE

100%

TOCGC

100%

Bio Creation

100%

TOL

100%

NPC S&E

100%

CH Inter

75%

Bio Spectrum

60%

PTTME

51%

TTT

50%

TEX

40%

PTTUT

30%

PPCL

25%

PTTPM

24.98%

VNT

22.7%

EFT

20% 16.67%

100%

TSCL

100%

TFA

46%

MYRIANT

50%

EMERY

100%

AP ROH

6XEVLGLDULHV %3( %DQJNRN 3RO\HWK\OHQH 3OF 3773( 377 3RO\HWK\OHQH &R /WG 76&/ 7KDL 6W\UHQLFV &R /WG 72&*& 72& *O\FRO &R /WG ($ 7KDL (WKDQRODPLQHV &R /WG %LR &UHDWLRQ %LR &UHDWLRQ &RPSDQ\ /LPLWHG IRUPHUO\ NQRZQ DV 7KDL &KROLQH &KORULGH &R /WG

72/ 7KDL 2OHRFKHPLFDOV &R /WG 7)$ 7KDL )DWW\ $OFRKRO &R /WG 13& 6 ( 13& 6DIHW\ DQG (QYLURQPHQWDO 6HUYLFH &R /WG &+ ,QWHU 377 &KHPLFDO ,QWHUQDWLRQDO 3WH /WG (0(5< (PHU\ 2OHRFKHPLFDOV 0 6GQ %KG $3 52+ 377 &KHPLFDO ,QWHUQDWLRQDO 3WH /WG $VLD 3DFLILF 52+

%LR 6SHFWUXP %LR 6SHFWUXP &R /WG 3770( 377 0DLQWHQDQFH DQG (QJLQHHULQJ &R /WG 777 7KDL 7DQN 7HUPLQDO /WG 7(; 7KDL (WKR[\ODWH &R /WG $IILOLDWHV 37787 33&/ 37730 917 ()7 377,&7 $3, 0\ULDQW

377 8WLOLW\ &R /WG 377 3KHQRO &R /WG 377 3RO\PHU 0DUNHWLQJ &R /WG 9LQ\WKDL 3OF (DVWHUQ )OXLG 7UDQVSRUW &R /WG 377 ,&7 6ROXWLRQV &R /WG $OOLDQFH 3HWURFKHPLFDO ,QYHVWPHQW 6LQJDSRUH 3WH /WG 0\ULDQW 7HFKQRORJLHV OQF

PTTICT API

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

5HYHQXHV 6WUXFWXUH 3URGXFWV 6HUYLFHV *URXS 2OHILQV 3URGXFWV 8WLOLWLHV 6DOHV UHYHQXH IURP (WK\OHQH 6DOHV UHYHQXH IURP 3URS\OHQH 6DOHV UHYHQXH IURP 'HULYDWLYHV 6DOHV UHYHQXH IURP 8WLOLWLHV 2WKHUV 7RWDO *URXS 3RO\PHUV 3URGXFWV 6DOHV UHYHQXH IURP 3ODVWLF SHOOHW 6DOHV UHYHQXH IURP 3RO\VW\UHQH 7RWDO

KROGLQJ <HDU <HDU <HDU 2SHUDWHG RI E\ &RPSDQ\ 0% 0% 0% 377&+ 377&+ 377&+ 377&+ 377&+

377&+ %3( 76&/

*URXS (WK\OHQH 2[LGH 3URGXFWV 6DOHV UHYHQXH IURP (2 (* (2 'HULYDWLYHV 6DOHV UHYHQXH IURP (2 'HULYDWLYHV 7RWDO

72&*& 7(;

*URXS 2OHRFKHPLFDO 3URGXFWV 6DOHV UHYHQXH IURP 0( )$ 6DOHV UHYHQXH IURP &+ ,QWHU (0(5< 7RWDO

72/ 7)$ &+ ,QWHU

*URXS 6HUYLFHV 2WKHUV 5HYHQXH IURP VWRUDJH DQG VKLSPHQW VHUYLFHV 777 5HYHQXH IURP FRQWLQXHG VHUYLFHV 377&+ 5HYHQXH IURP IDFLOLWLHV PDLQWHQDQFH VHUYLFHV 3770( 5HYHQXH IURP VDIHW\ DQG HQYLURQPHQWDO 13& 6 ( VHUYLFHV 7RWDO 7RWDO IURP 6DOHV 6HUYLFHV 5HPDUN %XVLQHVV *URXSV FODVVLILHG LQ OLQH ZLWK WKH 9DOXH &KDLQ

Annual Report 2010 PTT Chemical Public Company Limited

&RQQHFWHG 7UDQVDFWLRQV 7UDQVDFWLRQV ZLWK 6KDUHKROGHUV DQG &RQQHFWHG &RPSDQLHV

$V RI 'HFHPEHU VRPH VLJQLILFDQW EXVLQHVV WUDQVDFWLRQV KDG WDNHQ SODFH EHWZHHQ WKH &RPSDQ\ DQG LWV VKDUHKROGHUV DQG FRQQHFWHG FRPSDQLHV RI FRPPRQ VKDUHKROGHUV RU GLUHFWRUV 0DLQO\ FRQFHUQLQJ SURGXFW DQG VHUYLFH WUDQVDFWLRQV WKHVH WUDQVDFWLRQV ZHUH EDVHG RQ PDUNHW RU FRQWUDFWXDO SULFHV %HORZ DUH WKH GHWDLOV &RPSDQ\ 377 3XEOLF &RPSDQ\ /LPLWHG 377

%XVLQHVV 3HWURFKHPLFDO %XVLQHVV 2SHUDWLRQ 6XSSRUW 5HODWLRQVKLS ZLWK 377 &KHPLFDO 0DMRU VKDUHKROGHU ZLWK VKDUHV &RPPRQ GLUHFWRU 0U 1RQWLJRUQ .DQFKDQDFKLWUD DQG 0U 3UDVHUW %XQVXPSXQ 7KUHH GLUHFWRUV DUH 377 H[HFXWLYHV 0U 3UDM\D 3KLQ\DZDW 0U 7HYLQ 9RQJYDQLFK 0U 9HHUDVDN .RVLWSDLVDO 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV &RPSDQ\ +0& 3RO\PHUV &RPSDQ\ /LPLWHG +0&

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

%XVLQHVV 0DQXIDFWXUH 6DOH RI 3RO\HWK\OHQH 5HODWLRQVKLS ZLWK 377 &KHPLFDO 73( V PDMRU VKDUHKROGHU 6LDP &HPHQW D PDMRU VKDUHKROGHU RI 377&+ QRZ KROGV DIWHU GLVSRVDO RI WKH 377&+ V 6KDUHV RQ WK 'HF 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV &RPPRQ GLUHFWRUV 0U &KRODQDW <DQDUDQRS DQG 0U 5RRQJURWH 5DQJVL\RSDVK UHVLJQHG IURP WKH %RDUG RQ WK 'HF

&RPSDQ\ 7KDL 3RO\SURS\OHQH &RPSDQ\ /LPLWHG 733

%XVLQHVV 0DQXIDFWXUH 6DOH RI 3RO\SURS\OHQH 5HODWLRQVKLS ZLWK 377 &KHPLFDO 733 V PDMRU VKDUHKROGHU 6LDP &HPHQW D PDMRU VKDUHKROGHU RI 377&+ QRZ KROGV DIWHU GLVSRVDO RI WKH 377&+ V 6KDUHV RQ WK 'HF 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV &RPPRQ GLUHFWRUV 0U &KRODQDW <DQDUDQRS DQG 0U 5RRQJURWH 5DQJVL\RSDVK UHVLJQHG IURP WKH %RDUG RQ WK 'HF &RPSDQ\ 377 $URPDWLFV DQG 5HILQLQJ 3XEOLF &RPSDQ\ /LPLWHG 377$5

%XVLQHVV 0DQXIDFWXUH VDOH RI EHQ]HQH WROXHQH SDUD[\OHQH RUWKR[\OHQH 5HODWLRQVKLS ZLWK 377 &KHPLFDO PL[HG [\OHQHV DQG RLO UHILQHU\ EXVLQHVV 377$5 V PDMRU VKDUHKROGHU 377 LV DOVR D PDMRU VKDUHKROGHU RI 377&+ &RPPRQ GLUHFWRUV 0U 3UDVHUW %XQVXPSXQ 0U :LWRRQ 6LPDFKRNHGHH 0U 3UDM\D 3KLQ\DZDW 0U 7HYLQ 9RQJYDQLFK 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV 0U :LWRRQ 6LPDFKRNHGHH UHVLJQHG IURP WKH %RDUG RQ WK )HE &RPSDQ\ 5D\RQJ 2OHILQV &RPSDQ\ /LPLWHG 52&

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

Annual Report 2010 PTT Chemical Public Company Limited

&RPSDQ\ 6LDP 0LWVXL 37$ &RPSDQ\ /LPLWHG 6,$0 0,768,

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

&RPPRQ GLUHFWRU 0U 9HHUDVDN .RVLWSDLVDO 7KUHH 777 GLUHFWRUV DUH 377&+ H[HFXWLYHV 0U 1DURQJ %XQGLWNDPRO 0U 'KDQHV &KDURHQVXSD\D 0UV 3XQWLS 2XQJSDVXN 6DOH WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV &RPSDQ\ %XVLQHVV

377 0DLQWHQDQFH DQG (QJLQHHULQJ &RPSDQ\ /LPLWHG 3770( 0DLQWHQDQFH DQG (QJLQHHULQJ 6HUYLFHV HWF 'RPHVWLF DQG $VLD

$ VXEVLGLDU\ RI 377&+ RI WKH VKDUHV

5HODWLRQVKLS ZLWK 377 &KHPLFDO 2QH 3770( GLUHFWRU LV D 377&+ H[HFXWLYH 0U -LDPVDN 1DQWDQDQDWH 6HUYLFHV WUDQVDFWLRQV &RPSDQ\ %XVLQHVV

13& 6DIHW\ DQG (QYLURQPHQWDO 6HUYLFH &RPSDQ\ /LPLWHG 13& 6 ( 6DIHW\ DQG (QYLURQPHQW 6HUYLFHV IRU 1HWZRUN *RYHUQPHQW $JHQFLHV DQG 3ULYDWH &RPSDQLHV 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ ZKROO\ RZQHG VXEVLGLDU\ RI 377&+ RI WKH VKDUHV

&RPPRQ GLUHFWRU 0U 9HHUDVDN .RVLWSDLVDO 7KUHH 13& 6 ( GLUHFWRUV DUH 377&+ H[HFXWLYHV 0U -LDPVDN 1DQWDQDQDWH 0U 1DURQJ %XQGLWNDPRO 0U 6XYLW 7LQQDFKRWH 6HUYLFHV WUDQVDFWLRQV

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

&RPPRQ GLUHFWRU 0U 3UDM\D 3KLQ\DZDW 7KUHH 3773( GLUHFWRUV DUH 377&+ H[HFXWLYHV 0U 1DURQJ %XQGLWNDPRO 0U 3DWLSDQ 6XNRQWKDPDQ 0U 6XYLW 7LQQDFKRWH &RPPRQ H[HFXWLYHV 0U 9HHUDVDN .RVLWSDLVDO 0U 1DURQJ %XQGLWNDPRO 0U 6XYLW 7LQQDFKRWH 6HUYLFH WUDQVDFWLRQV 0U .KXEEKRO 6XNVXSKD 377(3 V GLUHFWRU ([HFXWLYH UHWLUHG RQ VW 'HF $FWLQJ 0DQDJLQJ 'LUHFWRU &RPSDQ\ 7KDL 6W\UHQLFV &RPSDQ\ /LPLWHG 76&/ %XVLQHVV 0DQXIDFWXUH DQG 6DOH RI 3HWURFKHPLFDO 3URGXFWV 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ ZKROO\ RZQHG VXEVLGLDU\ RI 377&+ RI WKH VKDUHV

)RXU 76&/ GLUHFWRUV DUH 377&+ H[HFXWLYHV 0U -LDPVDN 1DQWDQDQDWH 0U 'KDQHV &KDURHQVXSD\D 0U 6XYLW 7LQQDFKRWH 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV 0U .KXEEKRO 6XNVXSKD 76&/ V GLUHFWRU UHWLUHG RQ VW 'HF

Annual Report 2010 PTT Chemical Public Company Limited

&RPSDQ\ 377 3KHQRO &RPSDQ\ /LPLWHG 33&/ %XVLQHVV 0DQXIDFWXUH RI 3KHQRO DQG %\ 3URGXFWV 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ 377&+ DVVRFLDWH ZLWK RI WKH VKDUHV 33&/ V PDMRU VKDUHKROGHU 377 LV DOVR D PDMRU VKDUHKROGHU RI 377&+ &RPPRQ GLUHFWRU 0U 9HHUDVDN .RVLWSDLVDO 7ZR 33&/ GLUHFWRUV DUH 377&+ H[HFXWLYHV 0U 'KDQHV &KDURHQVXSD\D 0UV 3XQWLS 2XQJSDVXN 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV &RPSDQ\ 377 3RO\PHU 0DUNHWLQJ &RPSDQ\ /LPLWHG 37730 %XVLQHVV 0DUNHWLQJ DQG 'LVWULEXWLRQ RI 3RO\PHU 3URGXFWV IRU 377 *URXS 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ 377&+ DVVRFLDWH ZLWK RI WKH VKDUHV 37730 V PDMRU VKDUHKROGHU 377 LV DOVR D PDMRU VKDUHKROGHU RI 377&+ &RPPRQ GLUHFWRU 0U 9HHUDVDN .RVLWSDLVDO 2QH 37730 GLUHFWRU LV D 377&+ H[HFXWLYH 0U 'KDQHV &KDURHQVXSD\D 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV &RPSDQ\ 6WDU 3HWUROHXP 5HILQLQJ &RPSDQ\ /LPLWHG 635& %XVLQHVV 2LO 5HILQHU\ %XVLQHVV 5HODWLRQVKLS ZLWK 377 &KHPLFDO 635& V PDMRU VKDUHKROGHU 377 LV DOVR D PDMRU VKDUHKROGHU RI 377&+ 6DOHV WUDQVDFWLRQV RI SURGXFWV &RPSDQ\ 9LQ\WKDL 3XEOLF &RPSDQ\ /LPLWHG 917 %XVLQHVV 0DQXIDFWXUH 6DOH RI 3RO\ 9LQ\O &KORULGH 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ 377&+ DVVRFLDWH ZLWK RI WKH VKDUHV &RPPRQ GLUHFWRU 0U 9HHUDVDN .RVLWSDLVDO 7ZR 917 GLUHFWRUV DUH 377&+ H[HFXWLYHV 0U 'KDQHV &KDURHQVXSD\D 0UV 3XQWLS 2XQJSDVXN 6DOHV WUDQVDFWLRQV RI SURGXFWV &RPSDQ\ ,53& 3XEOLF &RPSDQ\ /LPLWHG ,53& %XVLQHVV 3HWURFKHPLFDO %XVLQHVV 5HODWLRQVKLS ZLWK 377 &KHPLFDO ,53& V PDMRU VKDUHKROGHU 377 LV DOVR D PDMRU VKDUHKROGHU RI 377&+ &RPPRQ GLUHFWRUV 0U 3UDVHUW %XQVXPSXQ 0U 3UDM\D 3KLQ\DZDW 6DOHV WUDQVDFWLRQV RI SURGXFWV

&RPSDQ\ %DQJNRN 3RO\HWK\OHQH 3XEOLF &RPSDQ\ /LPLWHG %3( %XVLQHVV 0DQXIDFWXUH 6DOH RI +LJK 'HQVLW\ 3RO\HWK\OHQH 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ ZKROO\ RZQHG VXEVLGLDU\ RI 377&+ RI WKH VKDUHV

&RPPRQ GLUHFWRU 0U 3UDM\D 3KLQ\DZDW 2QH %3( GLUHFWRU LV D 377&+ H[HFXWLYH 0U 6XYLW 7LQQDFKRWH 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV &RPSDQ\ %DQJNRN 6\QWKHWLFV &RPSDQ\ /LPLWHG %67

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

%XVLQHVV 3LSHOLQH ,QIUDVWUXFWXUDO 6HUYLFHV 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ 377&+ DVVRFLDWH ZLWK RI WKH VKDUHV &RPPRQ GLUHFWRU 0U $WKDYXGKL +LUXQEXUDQD 6HUYLFH WUDQVDFWLRQV &RPSDQ\ 'KLSD\D ,QVXUDQFH 3XEOLF &RPSDQ\ /LPLWHG '+,3$<$ %XVLQHVV ,QVXUDQFH %XVLQHVV 5HODWLRQVKLS ZLWK 377 &KHPLFDO '+,3$<$ V PDMRU VKDUHKROGHU 377 LV DOVR D PDMRU VKDUHKROGHU RI 377&+ 6HUYLFH WUDQVDFWLRQV

Annual Report 2010 PTT Chemical Public Company Limited

72& *O\FRO &RPSDQ\ /LPLWHG 72&*& &RPSDQ\ 0DQXIDFWXUH 6DOH RI 0RQR (WK\OHQH *O\FRO %XVLQHVV 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ ZKROO\ RZQHG VXEVLGLDU\ RI 377&+ RI WKH VKDUHV

7KUHH 72&*& GLUHFWRUV DUH 377&+ H[HFXWLYHV 0U $WKDYXGKL +LUXQEXUDQD 0UV 3XQWLS 2XQJSDVXN 0U 3DWLSDQ 6XNRQWKDPDQ 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV 7KDL (WKR[\ODWH &RPSDQ\ /LPLWHG 7(; 0DQXIDFWXUH 6DOH RI )DWW\ $OFRKRO (WKR[\ODWHV %DVH &KHPLFDOV RI 3HUVRQDO +HDOWKFDUH 3URGXFWV 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ 377&+ MRLQW YHQWXUH ZLWK RI WKH VKDUHV 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV &RPSDQ\ %XVLQHVV

7KDL (WKDQRODPLQHV &RPSDQ\ /LPLWHG ($ 0DQXIDFWXUH 6DOH RI (WKDQRODPLQHV $QG 3URGXFWV IRU 3DLQW 3KDUPDFHXWLFDO &RVPHWLFV &HPHQW HWF 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ ZKROO\ RZQHG VXEVLGLDU\ RI 377&+ RI WKH VKDUHV

7ZR ($ GLUHFWRUV DUH 377&+ H[HFXWLYHV 0U $WKDYXGKL +LUXQEXUDQD 0U 3DWLSDQ 6XNRQWKDPDQ 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV &RPSDQ\ %XVLQHVV

&RPSDQ\

%LR &UHDWLRQ &RPSDQ\ /LPLWHG %LR &UHDWLRQ

)RUPHUO\ NQRZQ DV 7KDL &KROLQH &KORULGH &RPSDQ\ /LPLWHG 7&&

0DQXIDFWXUH 6DOH RI &KROLQH &KORULGH %XVLQHVV 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ ZKROO\ RZQHG VXEVLGLDU\ RI 377&+ RI WKH VKDUHV

7KUHH %LR &UHDWLRQ GLUHFWRUV DUH 377&+ H[HFXWLYHV 0U 'KDQHV &KDURHQVXSD\D 0UV 3XQWLS 2XQJSDVXN 0U 3DWLSDQ 6XNRQWKDPDQ 6HUYLFH WUDQVDFWLRQV 7KDL 2OHRFKHPLFDOV &RPSDQ\ /LPLWHG 72/ &RPSDQ\ 0DQXIDFWXUH 6DOH RI 0HWK\O (VWHU )DWW\ $OFRKRO DQG *O\FHULQH %XVLQHVV 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ ZKROO\ RZQHG VXEVLGLDU\ RI 377&+ RI WKH VKDUHV

7ZR 72/ GLUHFWRUV DUH 377&+ H[HFXWLYHV 0U $WKDYXGKL +LUXQEXUDQD 0U 3DWLSDQ 6XNRQWKDPDQ 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV &RPPRQ GLUHFWRU 0U :LWRRQ 6LPDFKRNHGHH UHVLJQHG IURP WKH %RDUG RQ WK )HE

&RPSDQ\ 7KDL ,QGXVWULDO *DVHV 3XEOLF &RPSDQ\ /LPLWHG 7,* %XVLQHVV 0DQXIDFWXUH 6DOH RI ,QGXVWULDO *DVHV 5HODWLRQVKLS ZLWK 377 &KHPLFDO &RPPRQ GLUHFWRU 0U 3DLEXO\D 3XQ\DYXWWL 6DOHV WUDQVDFWLRQV RI SURGXFWV DQG VHUYLFHV &RPSDQ\ 377 ,&7 6ROXWLRQV &RPSDQ\ /LPLWHG 377,&7

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

)RUPHUO\ NQRZQ DV &RJQLV 2OHRFKHPLFDOV 0 6GQ %KG 0DQXIDFWXUH RI 2OHRFKHPLFDOV )DWW\ $OFRKROV DQG DOO LWV 'HULYDWLYHV %XVLQHVV 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ 377&+ MRLQW YHQWXUH ZLWK KROGV RI WKH VKDUHV &RPPRQ GLUHFWRU 0U 9HHUDVDN .RVLWSDLVDO 2QH GLUHFWRU LV 377&+ H[HFXWLYH 0UV 3XQWLS 2XQJSDVXN 6DOHV WUDQVDFWLRQV RI SURGXFWV &RPSDQ\

Annual Report 2010 PTT Chemical Public Company Limited

&RPSDQ\ 377 &KHPLFDO ,QWHUQDWLRQDO 3ULYDWH /LPLWHG &+ ,QWHU %XVLQHVV 6HUYLFHV IRU ,QWHUQDWLRQDO ,QYHVWPHQW DQG 0DQDJHPHQW WR 377&+ 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ ZKROO\ RZQHG VXEVLGLDU\ RI 377&+ RI WKH VKDUHV

&RPPRQ GLUHFWRU 0U 9HHUDVDN .RVLWSDLVDO 7ZR &+ ,QWHU GLUHFWRUV DUH 377&+ H[HFXWLYHV 0U $WKDYXGKL +LUXQEXUDQD 0UV 3XQWLS 2XQJSDVXN 6DOHV WUDQVDFWLRQV RI SURGXFWV &RPSDQ\ 377 &KHPLFDO ,QWHUQDWLRQDO $6,$ 3$&,),& 52+ /7' $3 52+

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

&RPSDQ\ %LR 6SHFWUXP &RPSDQ\ /LPLWHG %LR 6SHFWUXP

%XVLQHVV %LRFKHPLFDO 3URGXFWV 5HODWLRQVKLS ZLWK 377 &KHPLFDO $ VXEVLGLDU\ RI 377&+ RI WKH VKDUHV

2QH %LR 6SHFWUXP GLUHFWRU LV 377&+ H[HFXWLYH 0U 7KLWLSRQJ -XUDSRUQVLULGHH &RPSDQ\ 377(3 6LDP /LPLWHG 377(36

%XVLQHVV 3HWUROHXP ([SORUDWLRQ DQG 3URGXFWLRQ 5HODWLRQVKLS ZLWK 377 &KHPLFDO 6XEVLGLDU\ RI 377(3 377(36 V PDMRU VKDUHKROGHU 377 LV DOVR D PDMRU VKDUHKROGHU RI 377&+ 6DOHV WUDQVDFWLRQ RI SURGXFWV DQG VHUYLFHV &RPSDQ\ 377 $VDKL &KHPLFDO &RPSDQ\ /LPLWHG 377$&

%XVLQHVV 3HWURFKHPLFDO %XVLQHVV 5HODWLRQVKLS ZLWK 377 &KHPLFDO 377$& V PDMRU VKDUHKROGHU 377 LV DOVR D PDMRU VKDUHKROGHU RI 377&+m &RPPRQ GLUHFWRU 0U 3UDM\D 3KLQ\DZDW 6DOHV WUDQVDFWLRQ RI SURGXFWV DQG VHUYLFHV (QHUJ\ &RPSOH[ &RPSDQ\ /LPLWHG (1&2

&RPSDQ\ 3URSHUW\ /HDVLQJ %XVLQHVV 5HODWLRQVKLS ZLWK 377 &KHPLFDO (QHUJ\ &RPSOH[ V PDMRU VKDUHKROGHU 377 LV DOVR D PDMRU VKDUHKROGHU RI 377&+ 6HUYLFHV WUDQVDFWLRQ $OOLDQFH 3HWURFKHPLFDO ,QYHVWPHQW 6LQJDSRUH 3WH /WG $3,

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

Annual Report 2010 PTT Chemical Public Company Limited

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

6KDUHKROGLQJ 6WUXFWXUH /LVW RI 0DMRU 6KDUHKROGHUV RI 377 &KHPLFDO 3XEOLF &RPSDQ\ /LPLWHG 377&+ DV RI 'HFHPEHU 1R

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

6KDUHV

5HPDUNV 377 *URXS 1R w 377 3XEOLF &RPSDQ\ /LPLWHG w +0& 3RO\PHUV &RPSDQ\ /LPLWHG 377 KROGV RI WKH VKDUHV

6KDUHKROGHUV RI 7KDL 19'5 &RPSDQ\ /LPLWHG 1R KROGLQJ 1RQ 9RWLQJ 'HSRVLWRU\ 5HFHLSW 19'5 DUH LQHOLJLEOH IRU YRWLQJ DW VKDUHKROGHUV PHHWLQJ H[FHSW ZKHQ H[HUFLVLQJ WKHLU YRWLQJ ULJKWV RQ GHOLVWLQJ WKH VKDUH IURP 6(7 7KH 6LDP &HPHQW *URXS 1R w 7KH 6LDP &HPHQW 3XEOLF &RPSDQ\ /LPLWHG w %DQJNRN 6\QWKHWLFV &RPSDQ\ /LPLWHG 6&& KROGV RI WKH VKDUHV

w 7KDL 3ODVWLF DQG &KHPLFDOV 3XEOLF &RPSDQ\ /LPLWHG 6&& KROGV RI WKH VKDUHV

:LWK VKDUHKROGLQJ 377 *URXS 1R LV LQ SUDFWLFH WKH PDMRU VKDUHKROGHUV ZLWK VLJQLILFDWLRQ LQIOXHQFH RQ WKH HVWDEOLVKPHQW RI FRUSRUDWH SROLF\ DQG VWUDWHJ\ )RUHLJQ 6KDUHKROGHUV w $V RI 'HFHPEHU WKHUH DUH IRUHLJQ VKDUHKROGHUV KROGLQJ D FRPELQHG RI VKDUHV RI SDLG XS FDSLWDO w 7KH &RPSDQ\ V UHJXODWLRQ 1R VWDWHG WKH OLPLWDWLRQV RQ WKH QXPEHU RI VKDUHV ZKLFK FDQ EH KHOG E\ WKH IRUHLJQHUV DW RI IXOO\ SDLG XS FDSLWDO

Annual Report 2010 PTT Chemical Public Company Limited

'LYLGHQG 3D\PHQW 3ROLF\ 377 &KHPLFDO 3XEOLF &RPSDQ\ /LPLWHG

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

<HDU

'LYLGHQG %DKW VKDUH

7RWDO GLYLGHQG PLOOLRQ %DKW

<HDU <HDU -DQ -XQ

6XEVLGLDU\ 7KDL 7DQN 7HUPLQDO /LPLWHG

7KH GLYLGHQG DOORFDWLRQ SROLF\ LV DV IROORZV %DUULQJ RWKHU QHFHVVLW\ WKH &RPSDQ\ VKDOO DOORFDWH D GLYLGHQG RI QR OHVV WKDQ RI WKH QHW SURILWV DIWHU WKH \HDU HQG GHGXFWLRQ RI FRUSRUDWH LQFRPH WD[ WR PDLQWDLQ WKH UDWLR RI OLDELOLWLHV WR VKDUHKROGHU V HTXLW\ RI QR PRUH WKDQ 6XEVLGLDU\ 72& *O\FRO &RPSDQ\ /LPLWHG

7KH GLYLGHQG DOORFDWLRQ SROLF\ LV DV IROORZV ,Q DQ\ GLYLGHQG DOORFDWLRQ WKH &RPSDQ\ VKDOO DOORFDWH DV FDSLWDO UHVHUYHV QR OHVV WKDQ RQH WZHQWLHWK RI WKH QHW SURILWV HDUQHG IURP LWV EXVLQHVV XQWLO VXFK FDSLWDO UHVHUYHV HTXDO RU H[FHHG RQH WHQWK RI LWV FDSLWDO 6XEVLGLDU\ 7KDL 2OHRFKHPLFDOV &RPSDQ\ /LPLWHG

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

2UJDQL]DWLRQ 6WUXFWXUH %2$5' 2) ',5(&7256

$XGLW &RPPLWWHH

&RUSRUDWH *RYHUQDQFH &RPPLWWHH

1RPLQDWLRQ &RPPLWWHH

5HPXQHUDWLRQ &RPPLWWHH

35(6,'(17 &(2 2SHUDWLRQDO 6HUYLFH 6XEVLGLDULHV

,QWHUQDO $XGLW

&RUSRUDWH $IIDLUV

2OHILQV 6KDUHG )DFLOLWLHV

6WUDWHJ\ ,QWHUQDWLRQDO $IIDLUV

0DUNHWLQJ &RPPHUFLDO 6XSSO\ &KDLQ *RYHUQDQFH

3RO\PHUV 3URGXFWV 9DOXH &HQWHU

)LQDQFH DQG $FFRXQWLQJ

2SHUDWLRQDO ([FHOOHQFH

(2 %DVHG 3HUIRUPDQFH 3URGXFWV 9DOXH &HQWHU

2UJDQL]DWLRQDO (IIHFWLYHQHVV

2OHRFKHPLFDO 3URGXFWV 9DOXH &HQWHU

%RDUG RI 'LUHFWRUV DQG 0DQDJHPHQW 7HDP

377 &KHPLFDO 3XEOLF &RPSDQ\ /LPLWHG

%RDUG RI 'LUHFWRUV 3UHVHQW ,PSRUWDQW 3RVLWLRQV

• Secretary - General, Office of the Civil Service Commission • Independent Director, PTT Public Company Limited • Director, Krung Thai Bank Public Company Limited (GXFDWLRQ 7UDLQLQJ

• Master of Public Administration, Middle Tennessee State University, U.S.A. • Bachelor of Arts (Political Science), Chiangmai University • National Defense College, Class 48 • Public Personnel Management, International Training Institute, Sydney, Australia • Seminar in Public Human Resource Management, JICA, Japan • Job Evaluation, OPM, U.S.A. • Civil Service Engineering Development Program, Visionary and Moral Leadership, Class 41 • Capital Market Academy Leader Program Class 9 7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

0U 1RQWLJRUQ .DQFKDQDFKLWUD &KDLUPDQ $JH

• Director Certification Program (DCP) Class 102/2008 • Audit Committee Program (ACP), Class 22/2008 • Financial Statements for Directors (FSD), Class 1/2008 • Role of the Compensation Committee (RCC), Class 6/2008 Thai Institute of Directors Association (IOD) ([SHULHQFHV

• Deputy Secretary - General of Office of the Civil Service Commission • Senior Advisor, Office of the Civil Service Commission • Director, Thai Oil Public Company Limited 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

• None

Annual Report 2010 PTT Chemical Public Company Limited

3UHVHQW ,PSRUWDQW 3RVLWLRQV

7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

â&#x20AC;˘ Chief Executive Officer & President, PTT Public Company Limited â&#x20AC;˘ Chairman, PTT Exploration and Production Public Company Limited â&#x20AC;˘ Vice Chairman, IRPC Public Company Limited

â&#x20AC;˘ Director Accreditation Program (DAP), Class 26/2004, Thai Institute of Directors Association (IOD)

(GXFDWLRQ 7UDLQLQJ

0U 3UDVHUW %XQVXPSXQ 9LFH &KDLUPDQ $JH

â&#x20AC;˘ Honorary Doctorate Degree in Engineering, Chulalongkorn University â&#x20AC;˘ Honorary Doctorate Degree in Management, National Institute of Development Administration (NIDA) â&#x20AC;˘ Honorary Doctorate Degree in Management Science, Petchaburi Rajabhat University â&#x20AC;˘ M.B.A., Utah State University, U.S.A. â&#x20AC;˘ Bachelor of Civil Engineering, Chulalongkorn University â&#x20AC;˘ Certificate in Advanced Management Program, Harvard Business School, U.S.A. â&#x20AC;˘ The Joint State - Private Sector Regular Course, the National Defence College (Class 10) â&#x20AC;˘ Politics and Governance in Development Systems for Executive Course, King Prajadhipok's Institute (Class 6) â&#x20AC;˘ Capital Market Academy Leader Program Class 3 3UHVHQW ,PSRUWDQW 3RVLWLRQV

â&#x20AC;˘ Permanent Secretary for Ministry of Industry â&#x20AC;˘ Director, the Electricity Generating Authority of Thailand â&#x20AC;˘ Chairman, Ratchburi Electricity Generating Holding Public Company Limited (GXFDWLRQ 7UDLQLQJ

0U :LWRRQ 6LPDFKRNHGHH ,QGHSHQGHQW 'LUHFWRU 'LUHFWRU WR WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH $JH

* Resigned from the Board of Directors on 11th February 2011

â&#x20AC;˘ Ph.D in Public Administration (Public and Private Management), Ramkhamhaeng University â&#x20AC;˘ Honorary Doctorate Degree in Safety Technology and Occupational Health, Faculty of Industrial Technology, Suan Sunandha Rajabhat University â&#x20AC;˘ M.B.A., Thammasat University â&#x20AC;˘ L.L.B., Thammasat University â&#x20AC;˘ B.Eng (Electrical Engineering), Kasetsart University â&#x20AC;˘ The National Defense College, (Class 46) â&#x20AC;˘ Political and Governance Program, King Prajadhipok's Institute (Class 11) â&#x20AC;˘ Capital Market Academy Leadership Program, Class 7, Capital Market Academy

([SHULHQFHV

â&#x20AC;˘ Director, Siam City Bank Public Company Limited â&#x20AC;˘ Director, Thai Oil Public Company Limited â&#x20AC;˘ Director, Rayong Refinery Public Company Limited 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

â&#x20AC;˘ None

â&#x20AC;˘ PDI Class 1, King Prajadhipok's Institute â&#x20AC;˘ The Programme of Senior Executives on Justice Administration, Batch 13, National Justice Academy, Office of the Judiciary â&#x20AC;˘ Top Executive Program in Commerce and Trade (TEPCoT) 06-09/2009 7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

â&#x20AC;˘ Financial Statements for Directors (FSD) Class 4/2009 â&#x20AC;˘ Director Certification Program (DCP) Class 115/2009, Thai Institute of Directors Association (IOD) ([SHULHQFHV

â&#x20AC;˘ Deputy Permanent Secretary, Ministry of Industry â&#x20AC;˘ Director, Electricity Generating Public Company Limited â&#x20AC;˘ Director-General, Department of Industrial Works, Ministry of Industry â&#x20AC;˘ Director, the Industrial Estate Authority of Thailand 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

â&#x20AC;˘ None

3UHVHQW ,PSRUWDQW 3RVLWLRQV

7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

• Chief Corporate Security Officer, Business • Director Accreditation Program (DAP), Security Office, Charoen Pokphand Group Class 25/2004, • Executive Assistant to President/CEO & • Audit Committee Program (ACP), Director, Fraud & Cyber Crime, True Class 11/2006, Corporation Public Company Limited • Finance for Non-Finance Directors (FND), Class 29/2006, Thai Institute of Directors (GXFDWLRQ 7UDLQLQJ Association (IOD) • Criminal Justice, M.A., California State ([SHULHQFHV University, U.S.A. • Public Administration (Police), B.A., Police • Deputy Commissioner-General, Royal Thai Police Cadet Academy • Oversea Command Course, Police Staff • Director, Thai Airways International Public College, United Kingdom Company Limited • FBI National Academy, Quantico, Virginia, 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\ U.S.A. • None • PDI Class 5, King Prajadhipok's Institute

3RO *HQ 1RSDGRO 6RPERRQVXE ,QGHSHQGHQW 'LUHFWRU &KDLUPDQ RI WKH 5HPXQHUDWLRQ &RPPLWWHH 'LUHFWRU WR WKH $XGLW &RPPLWWHH $JH

3UHVHQW ,PSRUWDQW 3RVLWLRQV

7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

• Director to the Audit Committee, Big C Supercenter Public Company Limited • Director, Thai Life Insurance Company Limited

• Director Accrediatation Program (DAP), Class 86/2010, Thai Institute of Directors Association (IOD)

(GXFDWLRQ 7UDLQLQJ

• Command and General Staff College, U.S.A. • Command and General Staff Course, Class 57 • B.A. Chulachomkhao Royal Military Academy, Class 17 • The National Defense College, Class 41 • Capital Market Academy Leader Program Class 8 • PDI Class 1, King Prajadhipok's Institute

*HQHUDO :LQDL 3KDWWL\DNXO

,QGHSHQGHQW 'LUHFWRU 'LUHFWRU WR WKH 1RPLQDWLRQ &RPPLWWHH $JH

([SHULHQFHV

• Permanent Secretary for Defence • Secretary-General, National Security Council (NSC) 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

• None

Annual Report 2010 PTT Chemical Public Company Limited

3UHVHQW ,PSRUWDQW 3RVLWLRQV

7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

â&#x20AC;˘ Chairman, Wang Tong Group Public Company Limited â&#x20AC;˘ Director, Thai Industrial Gas Public Company Limited

â&#x20AC;˘ Director Certification Program (DCP), Class 22/2002, â&#x20AC;˘ Setting the CEO Performance Plan and Evaluation, Thai Institute of Directors Association (IOD)

(GXFDWLRQ 7UDLQLQJ

â&#x20AC;˘ B.Sc. Chemical Engineering, Chulalongkorn University â&#x20AC;˘ Senior Executive Program, National Institute of Development Administration (NIDA) â&#x20AC;˘ Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University (Sasin) â&#x20AC;˘ NPRA International Petrochemical Conference, U.S.A. â&#x20AC;˘ Balanced Scorecard by Learnet International (Thailand) Co., Ltd. â&#x20AC;˘ PDI Class 2, King Prajadhipok's Institute

([SHULHQFHV

â&#x20AC;˘ Advisor to Board of Directors of the Aromatics (Thailand) Public Company Limited 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

â&#x20AC;˘ None

0U 3DLEXO\D 3XQ\DYXWWL

,QGHSHQGHQW 'LUHFWRU &KDLUPDQ RI WKH $XGLW &RPPLWWHH &KDLUPDQ RI WKH 1RPLQDWLRQ &RPPLWWHH $JH

3UHVHQW ,PSRUWDQW 3RVLWLRQV

([SHULHQFHV

â&#x20AC;˘ Director General, Office of Regional Appellate Litigation, Region 9 Acting as Director General, Department of Policy, Strategy and Budget Planning â&#x20AC;˘ Chairman, Krungthai Laws Company Limited â&#x20AC;˘ Commissioner, Securities and Exchange Commission, Thailand â&#x20AC;˘ Director, Metropolitan Electricity Authority

â&#x20AC;˘ Deputy Director, Department of Prosecutor Commission, Acting as Director General, Department of Policy, Strategy and Budget Planning â&#x20AC;˘ Deputy Director, Department of Intellectual Property and International Trade Litigation â&#x20AC;˘ Director and Director to the Audit Committee, Neighboring Countries Economic Development Cooperation Agency (Public Organization) (NEDA) â&#x20AC;˘ Director and Director to the Audit Committee, SME Bank

(GXFDWLRQ 7UDLQLQJ

0U 6RPFKDL .XYLMLWVXZDQ

,QGHSHQGHQW 'LUHFWRU 'LUHFWRU WR WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH 'LUHFWRU WR WKH 5HPXQHUDWLRQ &RPPLWWHH $JH

â&#x20AC;˘ Master of Political Science, National Institute of Development Administration â&#x20AC;˘ Barrister at Law, Institute of Thai Bar Association â&#x20AC;˘ LL.B., Ramkamheang University â&#x20AC;˘ Provincial Public Prosecutor Program, Class 9/2530 â&#x20AC;˘ Capital Market Academy Leader Program Class 9 7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

â&#x20AC;˘ Director Certification Program (DCP) Class 76/2006 â&#x20AC;˘ Understanding the Fundamental of Financial Statement, Class 3/2006, Thai Institute of Directors Association (IOD)

5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

â&#x20AC;˘ None

3UHVHQW 3RVLWLRQV

7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

• None

• Director Certification Program (DCP) , Class 59/2005 • Role of the Chairman Program (RCP), Class 21/2009, Thai Institute of Director Association (IOD)

(GXFDWLRQ 7UDLQLQJ

0U 6RPEDW 6DUQWLMDUHH

• Master Degree in Mechanical Engineering, Lamar University, Texsas, U.S.A. • Bachelor of Engineering (Mechanical Engineering), Kasetsart University • Certificate in Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University • Psychological Operation Staff Course, Applied Psychology Institute • Certificate in Governance and Public Law, King Prajadhipok's Institute • Certificate in Senior Executive Development Program-I, GE Company Limited • Capital Market Academy Leader Program Class 6

([SHULHQFHV

• Governor, Electricity Generating Authority of Thailand (EGAT) • Deputy Governor - Production, Electricity Generating Authority of Thailand (EGAT) • Director, the Electricity Generating Public Company Limited • Chairman, Ratchaburi Electricity Generating Holding Public Company Limited • Director, EGAT International Company Limited • Chairman, Ratchaburi Power Company Limited 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

• None

,QGHSHQGHQW 'LUHFWRU 'LUHFWRU WR WKH $XGLW &RPPLWWHH $JH

3UHVHQW 3RVLWLRQV

7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

• Retired Government Official

• Director Certification Program (DCP) Class 121/2009 • Director Accreditation Program (DAP), • Ph.D. Eng. (Coastal Engineering), Asian Class 56/2006 Institute of Technology • Understanding the Fundamental of • M. Eng. (Coastal Engineering), Asian Financial Statement (UFS), Class 1/2006, Institute of Technology • Setting the CEO Performance Plan and • M. Eng. (Sanitary Engineering), Evaluation, Thai Institute of Directors Chulalongkorn University • B. Eng. (Civil Engineering), Chulalongkorn Association (IOD) • PDI Class 3, King Prajadhipok's Institute University • The Joint State - Private Sector Regular ([SHULHQFHV Course, Class 15, the National Defence • Chief Inspector General, Ministry of Energy • Director-General, Department of College Alternative Energy Development and • Senior Administrator Training 2001, Efficiency, Ministry of Energy 1st Course (32nd Batch) Office of • Director-General, Department of Energy the Civil Service Commission Business, Ministry of Energy • Top Executive Program in Commerce • Director, PTT Public Company Limited and Trade (TEPCoT) 06-09/2009 • Independent Director, Ratchaburi Electricity Generating Holding Public Company Limited (GXFDWLRQ 7UDLQLQJ

0U 3DQLFK 3RQJSLURGRP 'LUHFWRU $JH

5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

• None

Annual Report 2010 PTT Chemical Public Company Limited

3UHVHQW ,PSRUWDQW 3RVLWLRQV

7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

• Chief Operation Officer, Downstream Petroleum Business Group, and Senior Executive Vice President, Oil Business Unit, PTT Public Company Limited • Director, PTT Aromatics and Refining Public Company Limited • Director, Thai Oil Public Company Limited • Director, IRPC Public Company Limited

• Director Certification Program (DCP), Class 14/2002, Thai Institute of Directors Association (IOD)

(GXFDWLRQ 7UDLQLQJ

• Ph.D. (Civil Eng.), University of Texas at Austin, U.S.A. • M.S. (Civil Eng.), Stanford University, U.S.A. • B.E. (Civil Eng.), Chulalongkorn University • The National Defense College, Class 15 • Capital Market Academy Leader Program Class 7

([SHULHQFHV

• Senior Executive Vice President, Petrochemicals & Refining Business Group, PTT Public Company Limited • Chairman, Alliance Refining Co,Ltd. • Director, Rayong Refinery Public Company Limited • Director, Star Petroleum Refining Company Limited 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

• None

0U 3UDM\D 3KLQ\DZDW

'LUHFWRU &KDLUPDQ RI WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH 'LUHFWRU WR WKH 1RPLQDWLRQ &RPPLWWHH $JH

3UHVHQW ,PSRUWDQW 3RVLWLRQV

7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

• Chief Financial Officer, PTT Public Company Limited • Director, PTT Exploration and Production Public Company Limited • Director, Thai Oil Public Company Limited

• Director Certification Program (DCP), Class 21/2002 • Financial Statements for Directors (FSD), Class 6/2009 • What the Board Should Do in a Downturn Situation (2009), Thai Institute of Directors Association (IOD)

(GXFDWLRQ 7UDLQLQJ

0U 7HYLQ 9RQJYDQLFK

'LUHFWRU 'LUHFWRU WR WKH 5HPXQHUDWLRQ &RPPLWWHH $JH

• M.S. (Petroleum Eng.), University of Houston, U.S.A. • M.S. (Chemical Eng.), Rice University, U.S.A. • B.Eng. (Chemical Eng.) - 1st Honors, Chulalongkorn University • Capital Market Academy Leader Program Class 6 • Democracy for Senior Executives Program, Class 10, King Prajadhipok's Institute • Program for Global Leadership (PGL), Harvard Business School, U.S.A. • Senior Executive Program (S.E.P. 7), SASIN/Kellogg/Wharton • National Defence College Class 2009 (NDP 2552)

([SHULHQFHV

• Senior Executive Vice President, Corporate Strategy & Development, PTT Public Company Limited • Executive Vice President, Corporate Business Development, PTT Public Company Limited • Director, Bangkok Aviation Fuel Services Public Company Limited • Director, Bangchak Petroleum Public Company Limited 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

• None

3UHVHQW ,PSRUWDQW 3RVLWLRQV

7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

â&#x20AC;˘ Senior Executive Vice President, Petroleum Downstream Business Group, PTT Public Company Limited â&#x20AC;˘ Director, PTT Phenol Company Limited â&#x20AC;˘ Director, PTT Polymer Marketing Company Limited â&#x20AC;˘ Chairman, the Plastic Industry Club, the Federation of Thai Industries â&#x20AC;˘ Director, Petroleum Institute of Thailand â&#x20AC;˘ Director, Thai Listed Companies Association

â&#x20AC;˘ Director Certification Program (DCP), Class 82/2006 â&#x20AC;˘ Finance for Non-Finance (FN), Class 30/2006, Thai Institute of Directors Association (IOD)

(GXFDWLRQ 7UDLQLQJ

0U 9HHUDVDN .RVLWSDLVDO

'LUHFWRU DQG 6HFUHWDU\ WR WKH %RDUG RI 'LUHFWRUV

â&#x20AC;˘ Master of Science (Mechanical Engineering), Texas A&I University, U.S.A. â&#x20AC;˘ Bachelor of Engineering (Mechanical), Chulalongkorn University â&#x20AC;˘ Top Executive Program in Commerce and Trade (TEPCoT) 06-09/2009 â&#x20AC;˘ Capital Market Academy Leader Program, Class 11

([SHULHQFHV

â&#x20AC;˘ Executive Vice President Acting for Senior Executive Vice President, PTT Public Company Limited â&#x20AC;˘ Executive Vice President-Polymers Products Value Center, PTT Chemical Public Company Limited â&#x20AC;˘ Executive Vice President-Marketing & Commercial, PTT Chemical Public Company Limited 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

â&#x20AC;˘ None

$JH

'LUHFWRUV ZKRVH WHUPV HQGHG RU UHVLJQHG LQ 0U 3LFKLW 1LWKLYDVLQ

'LUHFWRU

0U $UHHSRQJ %KRRFKD RRP

'HFHPEHU $SULO

,QGHSHQGHQW 'LUHFWRU DQG $SULO 1RYHPEHU 'LUHFWRU WR WKH $XGLW &RPPLWWHH

0U &KRODQDW <DQDUDQRS

'LUHFWRU

'HFHPEHU 'HFHPEHU

'LUHFWRU

'HFHPEHU 'HFHPEHU

0U 5RRQJURWH 5DQJVL\RSDVK

Annual Report 2010 PTT Chemical Public Company Limited

0DQDJHPHQW 7HDP 3UHVHQW ,PSRUWDQW 3RVLWLRQV

7UDLQLQJ RQ 'LUHFWRU 5ROHV DQG 5HVSRQVLELOLWLHV

â&#x20AC;˘ Director Certification Program (DCP), Class 82/2006, â&#x20AC;˘ Finance for Non-Finance (FN), Class 30/2006, Thai Institute of Directors Association (IOD)

(GXFDWLRQ 7UDLQLQJ

0U 9HHUDVDN .RVLWSDLVDO 3UHVLGHQW &(2

([SHULHQFHV

â&#x20AC;˘ None

$JH

3UHVHQW ,PSRUWDQW 3RVLWLRQV

([SHULHQFHV

â&#x20AC;˘ Chairman, NPC Safety and Environmental Service Company Limited â&#x20AC;˘ Director, PTT Maintenance and Engineering Company Limited â&#x20AC;˘ Director, PTT Utility Company Limited â&#x20AC;˘ Director, Thai Styrenics Company Limited

â&#x20AC;˘ Executive Vice President - Chief Engineering & Construction Plant I Debottleneck, PTT Chemical Public Company Limited

(GXFDWLRQ 7UDLQLQJ

â&#x20AC;˘ Master's Degree in Mechanical Engineering, Chulalongkorn University â&#x20AC;˘ Bachelor's Degree in Mechanical Engineering, Chulalongkorn University â&#x20AC;˘ Director Certification Program (DCP), Class 92/2007, Thai Institute of Directors Association (IOD)

0U -LDPVDN 1DQWDQDQDWH ([HFXWLYH 9LFH 3UHVLGHQW 2SHUDWLRQDO ([FHOOHQFH $JH

5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

â&#x20AC;˘ None

3UHVHQW ,PSRUWDQW 3RVLWLRQV

([SHULHQFHV

â&#x20AC;˘ Director, NPC Safety and Environmental Service Company Limited â&#x20AC;˘ Director, Thai Tank Terminal Limited â&#x20AC;˘ Director, PTT Utility Company Limited â&#x20AC;˘ Director, PTT Polyethylene Company Limited

â&#x20AC;˘ Executive Vice President (Operation), National Petrochemical Public Company Limited 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

â&#x20AC;˘ None

(GXFDWLRQ 7UDLQLQJ

0U 1DURQJ %XQGLWNDPRO ([HFXWLYH 9LFH 3UHVLGHQW 2OHILQV 6KDUHG )DFLOLWLHV

â&#x20AC;˘ M.B.A., Thammasat University â&#x20AC;˘ B.Eng. (Electrical Engineering), Chulalongkorn University â&#x20AC;˘ Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University â&#x20AC;˘ Advanced Management Program, Harvard Business School, U.S.A. â&#x20AC;˘ Director Certification Program (DCP), Class 97/2007, Thai Institute of Directors Association (IOD)

$JH

0U 'KDQHV &KDURHQVXSD\D ([HFXWLYH 9LFH 3UHVLGHQW 0DUNHWLQJ &RPPHUFLDO 6XSSO\ &KDLQ *RYHUQDQFH $JH

3UHVHQW ,PSRUWDQW 3RVLWLRQV

([SHULHQFHV

â&#x20AC;˘ Director, PTT Phenol Company Limited â&#x20AC;˘ Director, PTT Utility Company Limited â&#x20AC;˘ Director, Thai Styrenics Company Limited â&#x20AC;˘ Director, Thai Tank Terminal Limited â&#x20AC;˘ Director, PTT Polymer Marketing Company Limited â&#x20AC;˘ Chairman, Bio Creation Company Limited

â&#x20AC;˘ Senior Vice President, PTT Chemical Public Company Limited â&#x20AC;˘ Executive Vice President - Operation, TOC Glycol Company Limited â&#x20AC;˘ EO/EG Project Director, PTT Chemical Public Company Limited

(GXFDWLRQ 7UDLQLQJ

â&#x20AC;˘ None

â&#x20AC;˘ Ph.D. (Mechanical Engineering), Illinois Institute of Technology, U.S.A. â&#x20AC;˘ Master of Science (Mechanical Engineering), Texas A & I University, U.S.A. â&#x20AC;˘ Bachelor's Degree in Mechanical Engineering, Chulalongkorn University â&#x20AC;˘ Advance Management Program, Harvard Business School, U.S.A. â&#x20AC;˘ Director Certification Program (DCP), Class 97/2007, Thai Institute of Directors Association (IOD)

5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

100

Annual Report 2010 PTT Chemical Public Company Limited

3UHVHQW ,PSRUWDQW 3RVLWLRQV

â&#x20AC;˘ Director, TOC Glycol Company Limited â&#x20AC;˘ Director, Thai Ethanolamines Company Limited â&#x20AC;˘ Director, Thai Oleochemicals Company Limited â&#x20AC;˘ Director, Thai Fatty Alcohol Company Limited â&#x20AC;˘ Director, Eastern Fluid Transport Company Limited â&#x20AC;˘ Director, PTT Utility Company Limited â&#x20AC;˘ Director, PTT ICT Solutions Company Limited â&#x20AC;˘ Director, PTT Chemical International (Singapore) Private Limited â&#x20AC;˘ Director, PTT Chemical International (Asia Pacific ROH) Limited (GXFDWLRQ 7UDLQLQJ

0U $WKDYXGKL +LUXQEXUDQD ([HFXWLYH 9LFH 3UHVLGHQW 2UJDQL]DWLRQDO (IIHFWLYHQHVV $JH Âˇ

â&#x20AC;˘ Master of Science (Mechanical), Manhattan College, New York, U.S.A. â&#x20AC;˘ Bachelor of Science (Mechanical), New York Institute of Technology, U.S.A. â&#x20AC;˘ Senior Executive Program 2007, Stanford University, U.S.A.

([HFXWLYH 9LFH 3UHVLGHQW 6WUDWHJ\ ,QWHUQDWLRQDO $IIDLUV $JH

([SHULHQFHV

â&#x20AC;˘ Director, Bio Creation Company Limited (Formerly known as Thai Choline Chloride Company Limited) â&#x20AC;˘ Acting Managing Director, Thai Ethoxylate Company Limited â&#x20AC;˘ Executive Vice President - Chief Corporate Development & Support, Thai Olefins Company Limited 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

â&#x20AC;˘ None

3UHVHQW ,PSRUWDQW 3RVLWLRQV

([SHULHQFHV

â&#x20AC;˘ Director, TOC Glycol Company Limited â&#x20AC;˘ Director, PTT Phenol Company Limited â&#x20AC;˘ Director, Thai Tank Terminal Limited â&#x20AC;˘ Director, PTT Chemical International (Singapore) Private Limited â&#x20AC;˘ Director, PTT Chemical International (Asia Pacific ROH) Limited â&#x20AC;˘ Director, Emery Oleochemicals (M) Sdn. Bhd â&#x20AC;˘ Director, Bio Creation Company Limited (Formerly known as Thai Choline Chloride Company Limited)

â&#x20AC;˘ Director, Thai Styrenics Company Limited â&#x20AC;˘ Director, PTT Polyethylene Company Limited â&#x20AC;˘ Director, PTT Polymer Marketing Company Limited â&#x20AC;˘ Executive Vice President - Corporate Strategy & Business Development, PTT Chemical Public Company Limited

(GXFDWLRQ 7UDLQLQJ

0UV 3XQWLS 2XQJSDVXN

â&#x20AC;˘ Executive Program for Senior Management 2005, Fiscal Policy Research Institute Foundation â&#x20AC;˘ Managing People for HR Executive, Thammasat University â&#x20AC;˘ Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University â&#x20AC;˘ Director Certificate Program (DCP), Class 79/2006, Thai Institute of Directors Association (IOD)

â&#x20AC;˘ Master's Degree in Business Administration (Commerce & Accountancy), Thammasat University â&#x20AC;˘ Bachelor's Degree in Chemical Engineering, Prince of Songkla University â&#x20AC;˘ The Advance Management Program (AMP), Harvard Business School, U.S.A. â&#x20AC;˘ Chief Finance Officer (CFO) Class 1/2004, The Institute of Certified Accountants and Auditors of Thailand â&#x20AC;˘ Director Certification Program (DCP) Class 67/2005, Thai Institute of Directors Association (IOD) and Australian Institute of Company Directors

5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

â&#x20AC;˘ None

101

3UHVHQW ,PSRUWDQW 3RVLWLRQV

([SHULHQFHV

â&#x20AC;˘ Director, PTT Polyethylene Company â&#x20AC;˘ Senior Executive Vice President Limited Accounting and Finance (CFO), â&#x20AC;˘ Director, Thai Oleochemicals Company Bangchak Petroleum Public Company Limited Limited (BCP) â&#x20AC;˘ Director, Thai Fatty Alcohol Company 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\ Limited â&#x20AC;˘ None â&#x20AC;˘ Director, TOC Glycol Company Limited â&#x20AC;˘ Director, Thai Ethanolamines Company Limited â&#x20AC;˘ Director, Bio Creation Company Limited (Formerly known as Thai Choline Chloride Company Limited) (GXFDWLRQ 7UDLQLQJ

0U 3DWLSDUQ 6XNRUQGKDPDQ ([HFXWLYH 9LFH 3UHVLGHQW )LQDQFH $FFRXQWLQJ $JH

â&#x20AC;˘ M.B.A. (Finance), The American University, U.S.A. â&#x20AC;˘ B.A. Political Science (Public Administration - Public Finance), 2nd Class Honors, Chulalongkorn University â&#x20AC;˘ Graduate Diploma in Public Law and Management (PLM.8), King Prajadhipok's Institute â&#x20AC;˘ Certification program for Senior Management 5 (Ex - PSM 5), Fiscal Policy Research Institute Foundation â&#x20AC;˘ Director Certification Program (DCP) 2006, Thai Institute of Directors Association (IOD) 3UHVHQW ,PSRUWDQW 3RVLWLRQV

([SHULHQFHV

â&#x20AC;˘ Director, NPC Safety and Environmental Service Company Limited â&#x20AC;˘ Director, Bangkok Polyethylene Public Company Limited â&#x20AC;˘ Chairman, Thai Styrenics Company Limited â&#x20AC;˘ Director, PTT Polyethylene Company Limited

â&#x20AC;˘ Executive Vice President EO-Based Performances Product Value Center â&#x20AC;˘ Executive Vice President - Chief Operating Unit Plant I-4, PTT Chemical Public Company Limited

(GXFDWLRQ 7UDLQLQJ

0U 6XYLW 7LQQDFKRWH

([HFXWLYH 9LFH 3UHVLGHQW 3RO\PHUV 3URGXFWV 9DOXH &HQWHU $JH

â&#x20AC;˘ Master of Public and Private Management, National Institute of Development Administration (NIDA) â&#x20AC;˘ Bachelor's Degree in Electrical Engineering, King Mongkut's Institute of Technology (Ladkrabang) â&#x20AC;˘ Asean Executive Program (AEP), GE Crotonville â&#x20AC;˘ Director Certification Program (DCP), Class 92/2007, Thai Institute of Directors Association (IOD)

5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

â&#x20AC;˘ None

102

Annual Report 2010 PTT Chemical Public Company Limited

3UHVHQW ,PSRUWDQW 3RVLWLRQV

([SHULHQFHV

â&#x20AC;˘ Director, Thai Oleochemicals Company Limited â&#x20AC;˘ Director, Thai Fatty Alcohol Company Limited â&#x20AC;˘ Director, NPC Safety and Environmental Service Company Limited â&#x20AC;˘ Director, Bangkok Polyethylene Public Company Limited

â&#x20AC;˘ Senior Vice President - Office of the President, PTT Chemical Public Company Limited â&#x20AC;˘ Vice President Corporate Governance Office, PTT Chemical Public Company Limited

(GXFDWLRQ 7UDLQLQJ

0UV 7KDVQDODN 6DQWLNXO 6HQLRU 9LFH 3UHVLGHQW &RUSRUDWH $IIDLUV

5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\

â&#x20AC;˘ None

â&#x20AC;˘ Master and Doctorate Degree (D.E.S) International Laws, Universite D'Aix-Marseil e, France â&#x20AC;˘ Bachelor Degree in Political Science (International Affairs), Thammasat University â&#x20AC;˘ Director Certification Program (DCP), Class 92/2007, Thai Institute of Directors Association (IOD) â&#x20AC;˘ Certification Business Program, NIDA-Wharton (Class 2)

$JH

3UHVHQW ,PSRUWDQW 3RVLWLRQV

â&#x20AC;˘ Chairman, Thai Ethanolamines Company Limited. â&#x20AC;˘ Director, TOC Glycol Company Limited â&#x20AC;˘ Director, Thai Ethoxylate Company Limited

([SHULHQFHV

â&#x20AC;˘ Managing Director, TOC Glycol Company Limited â&#x20AC;˘ Managing Director, Thai Ethanolamines Company Limited â&#x20AC;˘ Manager, Operation Support and Utilities (GXFDWLRQ 7UDLQLQJ Department Thai Olefins Public â&#x20AC;˘ Master's Degree in Public and Private Company Limited Management, National Institute of â&#x20AC;˘ Manager, Engineering and Technical Development Administration (NIDA) â&#x20AC;˘ Bachelor's Degree in Electrical Engineering, Department Thai Olefins Public Company Limited Feati University, the Philippines 5HODWLRQ DPRQJ IDPLO\ ZLWKLQ WKH &RPSDQ\ â&#x20AC;˘ Director Certification Program (DCP), Class 117/2009, Thai Institute of Directors â&#x20AC;˘ None Association (IOD) â&#x20AC;˘ Certificate Senior Executive Program, Kellog/Sasin (SEP Class 19) â&#x20AC;˘ Certificate Business Program, NIDA-Wharton (Class 3)

0U 6HUPVDN 6UL\DSKDL 6HQLRU 9LFH 3UHVLGHQW (2 %DVHG 3HUIRUPDQFH 3URGXFW 9DOXH &HQWHU $JH

103

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

104

Annual Report 2010 PTT Chemical Public Company Limited

0DQDJHPHQW 6WUXFWXUH 7KH 0DQDJHPHQW 6WUXFWXUH RI 377 &KHPLFDO 3XEOLF &RPSDQ\ /LPLWHG FRQVLVWV RI WKH %RDUG RI 'LUHFWRUV 6XE FRPPLWWHHV WKH 3UHVLGHQW &(2 DQG WKH ([HFXWLYHV /LVW RI WKH %RDUG RI 'LUHFWRUV DV RI 'HFHPEHU 3RVLWLRQ

1DPH 0U 1RQWLJRUQ .DQFKDQDFKLWUD

&KDLUPDQ

0U 3UDVHUW %XQVXPSXQ

9LFH &KDLUPDQ

0U :LWRRQ 6LPDFKRNHGHH

,QGHSHQGHQW 'LUHFWRU 'LUHFWRU WR WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH

3RO *HQ 1RSDGRO 6RPERRQVXE

,QGHSHQGHQW 'LUHFWRU &KDLUPDQ RI WKH 5HPXQHUDWLRQ &RPPLWWHH 'LUHFWRU WR WKH $XGLW &RPPLWWHH

*HQ :LQDL 3KDWWL\DNXO

,QGHSHQGHQW 'LUHFWRU 'LUHFWRU WR WKH 1RPLQDWLRQ &RPPLWWHH

0U 3DLEXO\D 3XQ\DYXWWL

,QGHSHQGHQW 'LUHFWRU &KDLUPDQ RI WKH $XGLW &RPPLWWHH &KDLUPDQ RI WKH 1RPLQDWLRQ &RPPLWWHH

0U 6RPFKDL .XYLMLWVXZDQ

,QGHSHQGHQW 'LUHFWRU 'LUHFWRU WR WKH 5HPXQHUDWLRQ &RPPLWWHH 'LUHFWRU WR WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH

0U 6RPEDW 6DUQWLMDUHH

,QGHSHQGHQW 'LUHFWRU 'LUHFWRU WR WKH $XGLW &RPPLWWHH

0U 3DQLFK 3RQJSLURGRP

'LUHFWRU

0U 3UDM\D 3KLQ\DZDW

'LUHFWRU &KDLUPDQ RI WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH 'LUHFWRU WR WKH 1RPLQDWLRQ &RPPLWWHH

0U 7HYLQ 9RQJYDQLFK

'LUHFWRU 'LUHFWRU WR WKH 1RPLQDWLRQ &RPPLWWHH

0U 9HHUDVDN .RVLWSDLVDO

3UHVLGHQW &(2 DQG 6HFUHWDU\ WR WKH %RDUG RI 'LUHFWRUV

5HPDUNV 'LUHFWRU QR UHVLJQHG IURP WKH %RDUG RQ )HEUXDU\ 'HWDLOV RI WKH FKDQJH LQ WKH FRPSRVLWLRQ RI WKH %RDUG RI 'LUHFWRUV DQG 6XE FRPPLWWHHV LQ DSSHDU RQ SDJH

105

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w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w 7KH %RDUG RI 'LUHFWRUV LV WR DSSRLQW DQ\RQH DPRQJ WKHPVHOYHV DV &KDLUPDQ ZKR PXVW FDVW D GHFLGLQJ YRWH LI WKHUH DUH DQ HTXDO QXPEHU RI YRWHV DPRQJ WKH GLUHFWRUV 7KH GLUHFWRUV DUH DOVR WR DSSRLQW DQRWKHU RQH DPRQJ WKHPVHOYHV DV 9LFH &KDLUPDQ ZKR DFWV RQ EHKDOI RI WKH &KDLUPDQ V LQ FDVH WKH &KDLUPDQ LV XQDEOH WR SHUIRUP KLV GXW\ RU LI WKH &KDLUPDQ V SRVLWLRQ EHFRPHV YDFDQW w ,I YDFDQFLHV RI WKH %RDUG RI 'LUHFWRUV DUH OHVV WKDQ LWV TXRUXP WKH RQO\ GXW\ WKDW WKH UHPDLQLQJ GLUHFWRUV FDQ SHUIRUP RQ EHKDOI RI WKH %RDUG LV WR FDOO IRU D VKDUHKROGHUV PHHWLQJ WR HOHFW GLUHFWRUV WR ILOO WKH YDFDQFLHV 7KH PHHWLQJ LV WR EH KHOG ZLWKLQ RQH PRQWK DIWHU WKH YDFDQFLHV RI WKH %RDUG DUH OHVV WKDQ WKH TXRUXP (DFK QHZO\ HOHFWHG GLUHFWRU UHSODFLQJ WKH IRUPHU GLUHFWRU LV WR VWD\ LQ KLV GXW\ IRU WKH UHPDLQLQJ WHUP RI WKH IRUPHU GLUHFWRU 7HUPLQDWLRQ w $W HYHU\ $QQXDO *HQHUDO 0HHWLQJ $*0 RQH WKLUG RI WKH GLUHFWRUV LV WR UHWLUH IURP KLV GXW\ 1HYHUWKHOHVV D GLUHFWRU ZKRVH WHUP LV FRPSOHWH PD\ EH UH HOHFWHG w $SDUW IURP QRUPDO WHUP H[SLUDWLRQ GLUHFWRUVKLS LV WR EH FRQVLGHUHG WHUPLQDWHG IRU UHDVRQV RI GHDWK UHVLJQDWLRQ GLVTXDOLILFDWLRQ RU GLVTXDOLILHG E\ ODZ VKDUHKROGHUV UHVROXWLRQV WR UHPRYH D GLUHFWRU RU D FRXUW RUGHU IRU UHPRYDO

106

Annual Report 2010 PTT Chemical Public Company Limited

w $Q\ GLUHFWRU PD\ UHVLJQ E\ VXEPLWWLQJ D UHVLJQDWLRQ OHWWHU WR WKH &RPSDQ\ 6XFK UHVLJQDWLRQ ZLO WDNH HIIHFW RQ WKH GDWH WKH &RPSDQ\ UHFHLYHV WKH OHWWHU 7KH GLUHFWRU PD\ DOVR LQIRUP WKH UHJLVWUDU DERXW WKH UHVLJQDWLRQ w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w (QVXUH WKH DYDLODELOLW\ RI EDODQFH VKHHWV LQFRPH VWDWHPHQWV DQG ILQDQFLDO UHSRUWV w $SSRLQW DQ H[WHUQDO DXGLWRU WR H[DPLQH WKH &RPSDQ\ V EDODQFH VKHHWV DQG LQFRPH VWDWHPHQWV DQG WR VHHN DSSURYDO IURP VKDUHKROGHUV DW WKH $*0 ZLWKLQ IRXU PRQWKV RI WKH &RPSDQ\ V DFFRXQWLQJ SHULRGV 7KH %RDUG LV WR VHQG FRSLHV RI WKH DXGLWHG EDODQFH VKHHWV WRJHWKHU ZLWK WKH DXGLWRU V UHSRUW DQG WKH DQQXDO UHSRUW WR DOO VKDUHKROGHUV DW OHDVW VHYHQ GD\V SULRU RI HDFK PHHWLQJ GDWH w ,GHQWLI\ WKH DXWKRUL]HG GLUHFWRUV ZKR ZLO VLJQ RQ EHKDOI RI WKH &RPSDQ\ DQG DIIL[ WKH &RPSDQ\ V VHDO w 'HWHUPLQH WKH LQWHULP GLYLGHQG SD\PHQW ZKHQ WKH &RPSDQ\ PDNHV HQRXJK SURILW DQG UHSRUW WR VKDUHKROGHUV DW WKH QH[W VKDUHKROGHUV PHHWLQJ 2YHUVLJKW RI WKH &RPSDQ\ w 'LUHFW DQG PRQLWRU WKH PDQDJHPHQW V H[HFXWLRQ WR HQVXUH SHUIRUPDQFH HIILFLHQF\ w (VWDEOLVK WKH &RPSDQ\ V LQWHUQDO UHJXODWLRQV w &RQVLGHU WKH &RPSDQ\ V DQQXDO EXGJHW FRQWDLQLQJ RSHUDWLQJ DQG LQYHVWPHQW EXGJHWV w $VVLJQ RQH GLUHFWRU RU PRUH WR DFW RQ EHKDOI RI WKH %RDUG w $SSRLQW RWKHU SHUVRQ V WR FDUU\ RXW WKH &RPSDQ\ V EXVLQHVV XQGHU WKH %RDUG V VXSHUYLVLRQ RU GHOHJDWH DXWKRULW\ WR WKH PHQWLRQHG SHUVRQ V ZLWKLQ D VXLWDEOH WLPHIUDPH 7KH %RDUG PD\ UHYRNH UHSHDO RU DPHQG WKH DXWKRUL]DWLRQ DW DQ\ WLPH w +ROG %RDUG PHHWLQJV RUJDQL]H VKDUHKROGHUV PHHWLQJV DQG QRWLI\ DOO VKDUHKROGHUV HQVXUH SUHSDUDWLRQ RI PLQXWHV RI WKH %RDUGV PHHWLQJV DQG WKH VKDUHKROGHUV PHHWLQJV w (VWDEOLVK WKH &RPSDQ\ V VWUXFWXUHV w *UDQW SHUPLVVLRQ WR GLUHFWRUV ZLVKLQJ WR EX\ WKH &RPSDQ\ V DVVHWV RU VHOO WKHLUV WR WKH &RPSDQ\ RU FRQGXFW DQ\ WUDQVDFWLRQV ZLWK WKH &RPSDQ\ HLWKHU LQ WKHLU QDPH RU LQ RWKHUV QDPH w 2IIHU RSLQLRQV RQ YDULRXV PDWWHUV DW WKH VKDUHKROGHUV PHHWLQJV LQFOXGLQJ RSLQLRQV IRU WKH DSSURYDO RI WKH DOORFDWLRQ RI DQQXDO QHW SURILWV IRU FDSLWDO UHVHUYHV

107

w $SSRLQW WKH $XGLW &RPPLWWHH 1RPLQDWLRQ &RPPLWWHH 5HPXQHUDWLRQ &RPPLWWHH DQG &RUSRUDWH *RYHUQDQFH &RPPLWWHH (DFK 6XE FRPPLWWHH FRPPLWWHH LV WR FRQVLVW RI GLUHFWRUV IURP WKH %RDUG XQGHU VSHFLILHG FULWHULD 7KH IROORZLQJ PDWWHUV KRZHYHU UHTXLUH SULRU DSSURYDO E\ WKH VKDUHKROGHUV PHHWLQJ w (QJDJHPHQW LQ D FRQQHFWHG WUDQVDFWLRQ DQG DFTXLVLWLRQ VDOH RI VLJQLILFDQW &RPSDQ\ DVVHWV DV GHILQHG E\ ODZ DQG DQQRXQFHG E\ WKH &DSLWDO 0DUNHW 5HJXODWRU\ %RDUG w 6DOH RU WUDQVIHU RI WKH ZKROH RU HVVHQWLDO SDUWV RI WKH &RPSDQ\ WR RWKHU HQWLWLHV w 3XUFKDVH RU WDNHRYHU RI RWKHU FRPSDQLHV w 3UHSDUDWLRQ DPHQGPHQW RU WHUPLQDWLRQ RI FRQWUDFWV GHDOLQJ ZLWK WKH JUDQWLQJ RI D OHDVH RI WKH ZKROH RU HVVHQWLDO SDUWV RI WKH &RPSDQ\ V EXVLQHVV WKH DVVLJQPHQW RI SHUVRQ V WR PDQDJH WKH &RPSDQ\ RU WKH PHUJHU RI WKH &RPSDQ\ ZLWK DQ\ RWKHU HQWLW\ WR VKDUH SURILWV DQG ORVVHV w $PHQGPHQW RI WKH PHPRUDQGXP RI DVVRFLDWLRQ RU WKH &RPSDQ\ V UHJXODWLRQV w ,QFUHDVH UHGXFWLRQ LQ UHJLVWHUHG FDSLWDO w ,VVXDQFH RI GHEHQWXUHV IRU WKH SXEOLF w &RPSDQ\ GLVVROXWLRQ PHUJHU w $QQRXQFHPHQW RI \HDUO\ GLYLGHQG SD\PHQW w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w $FFRXQWDEOH WR WKH %RDUG DQG DOO WKH VKDUHKROGHUV E\ JHQHUDWLQJ DQG VXSSOHPHQWLQJ EXVLQHVV YDOXH IRU VWDNHKROGHUV

108

Annual Report 2010 PTT Chemical Public Company Limited

w 'HYLVH REMHFWLYHV IRU WKH VXSHUYLVLRQ RI 377 &KHP *URXS WR VXSSOHPHQW EXVLQHVV YDOXH IRU VWDNHKROGHUV w &UHDWH D EURDG YLVLRQ PLVVLRQ JRDOV DQG WDUJHWV RI WKH RYHUDOO EXVLQHVV RSHUDWLRQ DV ZHOO DV HQVXULQJ WKH FRQFUHWH LPSOHPHQWDWLRQ DQG RUJDQL]DWLRQDO GHYHORSPHQW w 'HOHJDWH DXWKRULW\ DQG UHVSRQVLELOLW\ WR H[HFXWLYH PDQDJHPHQW DQG VHQLRU PDQDJHPHQW LQ VXSSRUW RI WKH 3UHVLGHQW &(2 V DFFRXQWDELOLW\ LQ FUHDWLQJ EXVLQHVV YDOXH w %H DFFRXQWDEOH IRU EXVLQHVV SHUIRUPDQFH DQG LQWHJUDWHG EXVLQHVV GHYHORSPHQW ZLWK ORQJ WHUP HFRQRPLF UHWXUQV FRPSDUDEOH WR WKRVH REWDLQHG LQ GRPHVWLF DQG RYHUVHDV SHWURFKHPLFDO EXVLQHVVHV w (WKLFDOO\ GHYHORS WKH &RPSDQ\ DV D PRGHO EXVLQHVV RSHUDWLRQ LQ FRQIRUPLQJ WR WKH ODZ PRUDOLW\ DQG FXOWXUH w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

3RVLWLRQ

0U 3DLEXO\D 3XQ\DYXWWL 3RO *HQ 1RSDGRO 6RPERRQVXE

&KDLUPDQ RI WKH $XGLW &RPPLWWHH

0U 6RPEDW 6DUQWLMDUHH

'LUHFWRU WR WKH $XGLW &RPPLWWHH

0U $GLVRQ 9LFKDLNDWND 9LFH 3UHVLGHQW RI WKH ,QWHUQDO $XGLW 'HSDUWPHQW VHUYHG DV VHFUHWDU\ WR WKH $XGLW &RPPLWWHH 5HPDUNV 0U $UHHSRQJ %KRRFKD RRP UHVLJQHG IURP WKH %RDUG DQG WKH $XGLW &RPPLWWHH RQ 1RYHPEHU $W LWV PHHWLQJ 1R RQ -DQXDU\ WKH %RDUG DSSRLQWHG 0U 6RPEDW 6DUQWLMDUHH ,QGHSHQGHQW 'LUHFWRU DV D PHPEHU RI WKH $XGLW &RPPLWWHH HIIHFWLYH IURP -DQXDU\

109

7KH &RPPLWWHH V WHUP LV WKUHH \HDUV RU WHUPLQDWHG E\ UHVLJQDWLRQ UHPRYDO E\ WKH %RDUG RU WHUPLQDWLRQ RI GLUHFWRUVKLS +RZHYHU PHPEHUV PD\ EH UH DSSRLQWHG E\ WKH %RDUG EXW QRW PRUH WKDQ WZR FRQVHFXWLYH WHUPV XQOHVV RWKHUZLVH DJUHHG E\ WKH %RDUG 8QGHU LWV &KDUWHU DV PRGLILHG DQG DSSURYHG E\ WKH %RDUG LQ LWV PHHWLQJ 1R RQ 'HFHPEHU WKH $XGLW &RPPLWWHH KDV WKH IROORZLQJ DXWKRULWLHV DQG UHVSRQVLELOLWLHV )LQDQFLDO 5HSRUWV DQG ([WHUQDO $XGLW w 5HYLHZ WKH DFFXUDF\ FRPSOHWHQHVV DQG FUHGLWDELOLW\ RI WKH &RPSDQ\ V ILQDQFLDO UHSRUWV w &RQVLGHU VHOHFW DQG DSSRLQW WKH H[WHUQDO DXGLWRU WRJHWKHU ZLWK WKH IHHV WR HQVXUH WKH H[WHUQDO DXGLWRU V LQGHSHQGHQFH ,QWHUQDO &RQWURO w 5HYLHZ WKH DGHTXDF\ DQG HIIHFWLYHQHVV RI WKH &RPSDQ\ V LQWHUQDO FRQWURO V\VWHP DQG ULVN PDQDJHPHQW w (QFRXUDJH WKH &RPSDQ\ WR HIILFLHQWO\ DQG HIIHFWLYHO\ FDUU\ RXW SURGXFWLRQ PDLQWHQDQFH DQG DQ\ RWKHU DFWLYLW\ UHODWHG WR SURGXFWLRQ ZLWK IXOO UHJDUG IRU VDIHW\ SUHYHQWLRQ DQG PLQLPL]DWLRQ RI HQYLURQPHQWDO LPSDFWV ,QWHUQDO $XGLW w 5HYLHZ WKH LQGHSHQGHQFH RI WKH 'HSDUWPHQW RI ,QWHUQDO $XGLW DQG WKH HIIHFWLYHQHVV RI WKH &RPSDQ\ V LQWHUQDO DXGLW V\VWHP w $SSURYH WKH DSSRLQWPHQW WUDQVIHU GLVPLVVDO DQG SHUIRUPDQFH HYDOXDWLRQ RI WKH KHDG RI WKH 2IILFH RI ,QWHUQDO $XGLW w $SSURYH WKH &KDUWHU RI WKH ,QWHUQDO $XGLW 'HSDUWPHQW w -RLQWO\ UHYLHZ DQG H[DPLQH WKH DXGLW UHVXOWV ZLWK WKH LQWHUQDO DXGLWRU w 'HYHORS XQGHUVWDQGLQJV DPRQJ WKH $XGLW &RPPLWWHH WKH PDQDJHPHQW WKH ,QWHUQDO $XGLW 'HSDUWPHQW DQG WKH H[WHUQDO DXGLWRU DQG FRQVLGHU WKH VFRSH RI DXGLW DQG DXGLW SODQV RI WKH &RPSDQ\ V LQWHUQDO DQG H[WHUQDO DXGLWRUV WR HQVXUH FRQVLVWHQF\ DQG FRRSHUDWLRQ &RPSOLDQFH ZLWK WKH /DZ DQG 5HODWHG 5HJXODWLRQV w 5HYLHZ WKH &RPSDQ\ V DFWLYLWLHV WR HQVXUH FRPSOLDQFH ZLWK WKH 6HFXULWLHV DQG ([FKDQJH ODZ 6(& UHJXODWLRQV DQG RI WKH 6WRFN ([FKDQJH RI 7KDLODQG 6(7 RU ODZV UHOHYDQW WR WKH &RPSDQ\ V EXVLQHVV w 5HYLHZ WKH FRQQHFWHG WUDQVDFWLRQV RU WKH WUDQVDFWLRQV WKDW PD\ OHDG WR FRQIOLFW RI LQWHUHVW WR HQVXUH WKDW WKH\ FRQIRUP WR WKH ODZ DQG 6(& UHJXODWLRQV DQG RI 6(7 DQG WKDW WKH\ DUH UHDVRQDEOH DQG SURYLGH WKH KLJKHVW EHQHILW WR WKH &RPSDQ\

110

Annual Report 2010 PTT Chemical Public Company Limited

5HSRUWLQJ w 3UHSDUH DQG GLVFORVH WKH $XGLW &RPPLWWHH V UHSRUW LQ WKH DQQXDO UHSRUW ZLWK LQIRUPDWLRQ DV UHTXLUHG E\ 6(7 WR EH VLJQHG E\ WKH $XGLW &RPPLWWHH &KDLUPDQ w 5HSRUW WKH SHUIRUPDQFH RI WKH $XGLW &RPPLWWHH WR WKH %RDUG w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w ,I WKH %RDUG RI 'LUHFWRUV RU WKH H[HFXWLYHV IDLOV WR UHFWLI\ DQ\ WUDQVDFWLRQ RU DFWLRQ WKDW PD\ VLJQLILFDQWO\ DIIHFW WKH &RPSDQ\ V ILQDQFLDO FRQGLWLRQ DQG SHUIRUPDQFH DQ\ PHPEHU RI WKH $XGLW &RPPLWWHH PD\ UHSRUW VXFK WUDQVDFWLRQ RU DFWLRQ WR 6(& RU 6(7 2WKHU 'XWLHV w 7KH $XGLW &RPPLWWHH PD\ DW WKH &RPSDQ\ V H[SHQVH VHHN DGYLFH IURP DQ H[WHUQDO LQGHSHQGHQW DGYLVHU ZKHUH QHFHVVDU\ w &RQGXFW VHOI DVVHVVPHQW RI WKH &RPPLWWHH V SHUIRUPDQFH DQG DFFRPSOLVKPHQW DJDLQVW WKH DVVLJQHG GXWLHV DQG UHVSRQVLELOLWLHV w 5HYLHZ LWV &KDUWHU DQG SURSRVH WKH UHYLVHG &KDUWHU WR WKH %RDUG IRU DSSURYDO w 3HUIRUP RWKHU GXWLHV DV DVVLJQHG E\ WKH %RDUG ZLWKLQ WKH VFRSH RI UHVSRQVLELOLWLHV RI WKH $XGLW &RPPLWWHH w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

111

1DPH 0U 3DLEXO\D 3XQ\DYXWWL *HQ :LQDL 3KDWWL\DNXO 0U 3UDM\D 3KLQ\DZDW

3RVLWLRQ ,QGHSHQGHQW 'LUHFWRU &KDLUPDQ RI WKH 1RPLQDWLRQ &RPPLWWHH ,QGHSHQGHQW 'LUHFWRU 'LUHFWRU WR WKH 1RPLQDWLRQ &RPPLWWHH 'LUHFWRU WR WKH 1RPLQDWLRQ &RPPLWWHH

7KH &RPPLWWHH V WHUP LV WKUHH \HDUV RU WHUPLQDWHG E\ UHVLJQDWLRQ WHUPLQDWLRQ RI GLUHFWRUVKLS RU UHPRYDO E\ WKH %RDUG +RZHYHU D GLUHFWRU ZKRVH WHUP LQ WKH RIILFH H[SLUHV PD\ EH UH HOHFWHG E\ WKH %RDUG 7KH &RPPLWWHH KDV WKH IROORZLQJ DXWKRULWLHV DQG UHVSRQVLELOLWLHV XQGHU WKH &KDUWHU DSSURYHG E\ WKH %RDUG DW LWV PHHWLQJ 1R RQ -XQH 6FRSH RI $XWKRULWLHV w 'HILQH WUDQVSDUHQW FULWHULD IRU UHFUXLWPHQW DQG VHOHFWLRQ SURFHGXUHV IRU GLUHFWRUV RU WKH 3UHVLGHQW &(2 w 5HFUXLW DQG VHOHFW TXDOLILHG SHUVRQV DV QHZ GLUHFWRUV RU WKH 3UHVLGHQW &(2 DQG SURSRVH WKHLU QDPHV WR WKH %RDUG V RU WKH VKDUHKROGHUV PHHWLQJ IRU DSSURYDO w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

112

Annual Report 2010 PTT Chemical Public Company Limited

7KH &RPPLWWHH V WHUP LV WKUHH \HDUV RU WHUPLQDWHG E\ UHVLJQDWLRQ WHUPLQDWLRQ RI GLUHFWRUVKLS RU UHPRYDO E\ WKH %RDUG +RZHYHU D GLUHFWRU ZKRVH WHUP LQ WKH RIILFH H[SLUHV PD\ EH UH HOHFWHG E\ WKH %RDUG 7KH &RPPLWWHH KDV WKH IROORZLQJ DXWKRULWLHV DQG UHVSRQVLELOLWLHV DFFRUGLQJ WR WKH &KDUWHU DSSURYHG E\ WKH %RDUG DW LWV PHHWLQJ 1R RQ -XQH 6FRSH RI $XWKRULWLHV w 'HILQH FRPSHQVDWLRQ JXLGHOLQHV IRU WKH GLUHFWRUV DQG WKH 3UHVLGHQW &(2 w 'HILQH FULWHULD DQG SURFHGXUHV IRU IDLU DQG UHDVRQDEOH FRPSHQVDWLRQ WR WKH 'LUHFWRUV DQG WKH 3UHVLGHQW &(2 IRU DSSURYDO DW WKH VKDUHKROGHUV PHHWLQJ w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

3RVLWLRQ &KDLUPDQ RI WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH ,QGHSHQGHQW 'LUHFWRU 'LUHFWRU WR WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH ,QGHSHQGHQW 'LUHFWRU 'LUHFWRU WR WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH

113

w (YDOXDWH DQG UHYLHZ SROLF\ SULQFLSOHV DQG FRGH RI FRQGXFW DV ZHOO DV WKH &RPSDQ\ V SUDFWLFHV DJDLQVW LQWHUQDWLRQDO VWDQGDUGV DQG OHDGLQJ FRPSDQLHV DQG SURSRVH XSGDWHV DQG VRXQG SUDFWLFHV WR WKH %RDUG IRU DSSURYDO w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

114

Annual Report 2010 PTT Chemical Public Company Limited

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

,QGHSHQGHQW &RUSRUDWH *RYHUQDQFH 'LUHFWRUV PHHWLQJ PHHWLQJV

'LUHFWRU 1R ZDV DSSRLQWHG DV PHPEHU RI WKH $XGLW FRPPLWWHH RQ -DQXDU\ WR UHSODFH 0U $UHHSRQJ %KRRFKD RRP

115

'LUHFWRUV &RPSHQVDWLRQ

7KH $*0 KHOG RQ $SULO DSSURYHG WKH FRPSHQVDWLRQ DQG ERQXVHV IRU WKH %RDUG WKH 6XE FRPPLWWHHV DQG GLUHFWRUV IRU DV IROORZV 5HPXQHUDWLRQ IRU WKH %RDUG DQG WKH 6XE FRPPLWWHHV VLQFH $SULO 5HPXQHUDWLRQ %RDUG V 5HPXQHUDWLRQ w 3HU 0RQWK w 3HU 0HHWLQJ

5DWH w &KDLUPDQ %DKW w 'LUHFWRU %DKW GLUHFWRU w 1RQH

6XE FRPPLWWHHV &RPSHQVDWLRQ w 7KH $XGLW &RPPLWWHH w 7KH 1RPLQDWLRQ &RPPLWWHH w 7KH 5HPXQHUDWLRQ &RPPLWWHH w 7KH &RUSRUDWH *RYHUQDQFH &RPPLWWHH

)RU HDFK PHHWLQJ w &KDLUPDQ %DKW PHHWLQJ w 'LUHFWRU %DKW GLUHFWRU PHHWLQJ

'LUHFWRUV ERQXVHV IRU DPRXQWHG WR %DKW PLO LRQ RU SHUFHQW RI WKH &RPSDQ\ V QHW SURILW IRU WKDW \HDU ZLWK WKH WHUPV RI HDFK GLUHFWRU WDNHQ LQWR DFFRXQW 7KH &KDLUPDQ UHFHLYHG SHUFHQW PRUH WKDQ RWKHU GLUHFWRUV ,Q DGGLWLRQ ZLWK WKH DSSURYDO RI WKH $*0 RQ $SULO WKH &RPSDQ\ DZDUGHG ZDUUDQWV IRU WKH H[HUFLVH IRU FRPPRQ VKDUHV XQGHU DQ (623 VFKHPH WR GLUHFWRUV WKH H[HFXWLYHV FRQVXOWDQWV HPSOR\HHV DQG VHFRQGPHQW IURP 377 3OF DQG LWV VXEVLGLDULHV ZKR VHUYHG 377 &KHPLFDO 3XEOLF &RPSDQ\ /LPLWHG

116

Annual Report 2010 PTT Chemical Public Company Limited

5HPXQHUDWLRQ SDLG LQ IRU 'LUHFWRUV 0RQWKO\ QJ 5HPXQHUDWLRQ IRU 5HPXQHUDWLRQ IRU 6XE FRPPLWWHH PHHWL &RUSRUDWH $XGLW 1RPLQDWLRQ 5HPXQHUDWLRQ %RDUG PHHWLQJ &RPPLWWHH &RPPLWWHH &RPPLWWHH *RYHUQDQFH &RPPLWWHH %DKW

0U 1RQWLJRUQ .DQFKDQDFKLWUD

%RQXV SDLG LQ %DKW

7RWDO %DKW

0U 3UDVHUW %XQVXPSXQ

0U :LWRRQ 6LPDFKRNHGHH

3RO *HQ 1RSDGRO 6RPERRQVXE

*HQ :LQDL 3KDWWL\DNXO

0U 3DLEXO\D 3XQ\DYXWWL

0U 6RPFKDL .XYLMLWVXZDQ

0U 6RPEDW 6DUQWLMDUHH

0U 3DQLFK 3RQJSLURGRP

0U 3UDM\D 3KLQ\DZDW

0U 7HYLQ 9RQJYDQLFK

0U 9HHUDVDN .RVLWSDLVDO

5HPDUNV 0U 1RQWLJRUQ .DQFKDQDFKLWUD $SULO VHUYHG DV GLUHFWRU -XQH VHUYHG DV &KDLUPDQ RI WKH %RDUG 0U 3UDVHUW %XQVXPSXQ )HEUXDU\ VHUYHG DV &KDLUPDQ RI WKH %RDUG -XQH VHUYHG DV 9LFH &KDLUPDQ RI WKH %RDUG 0U 6RPEDW 6DUQWLMDUHH $SULO VHUYHG DV GLUHFWRU 0U 9HHUDVDN .RVLWSDLVDO 'LUHFWRU V FRPSHQVDWLRQ VKRZQ H[FOXGLQJ H[HFXWLYH FRPSHQVDWLRQ

117

5HWLUHG DQG 5HVLJQHG 'LUHFWRUV GXULQJ 5HPXQHUDWLRQ RI UHWLUHG DQG UHVLJQLQJ 'LUHFWRUV GXULQJ 1DPH

0U 3LFKLW 1LWKLYDVLQ 0U $UHHSRQJ %KRRFKD RRP

3RVLWLRQ

'LUHFWRU ,QGHSHQGHQW 'LUHFWRU 'LUHFWRU $XGLW &RPPLWWHH 0U &KRODQDW <DQDUDQRS 'LUHFWRU 0U 5RRQJURWH 'LUHFWRU 5DQJVL\RSDVK

/DVW 'DWH RI 7HUP

$SU 0D\ 'HF 'HF

0RQWKO\ 6XE G LQ $WWHQGDQFH FRPPLWWHH PHHWLQJ %RQXV SDL %DKW

5HPXQHUDWLRQ %DKW

7RWDO %DKW

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

118

Annual Report 2010 PTT Chemical Public Company Limited

5HPXQHUDWLRQ RI 'LUHFWRUV ZKR VHUYHG DV 'LUHFWRUV RI PDMRU VXEVLGLDULHV LQ 7KH 'LUHFWRUV DUH DSSRLQWHG WR VHUYH RQ WKH %RDUGV RI WKH VXEVLGLDULHV WR FRQGXFW WKH EXVLQHVVHV XQGHU EXVLQHVV SROLFLHV RI 377 &KHP *URXS 7KHLU UHPXQHUDWLRQ DV ERDUG PHPEHUV RI PDMRU VXEVLGLDULHV LQ ZDV DV IROORZV w 377 3RO\HWK\OHQH &RPSDQ\ /LPLWHG 3773( RZQHG

1DPH 3RVLWLRQ 0U 3UDM\D 3KLQ\DZDW &KDLUPDQ 0U 9HHUDVDN .RVLWSDLVDO 'LUHFWRU

7RWDO 5HPXQHUDWLRQ %DKW

w %DQJNRN 3RO\HWK\OHQH 3XEOLF &RPSDQ\ /LPLWHG %3( RZQHG

1DPH 3RVLWLRQ 0U 3UDM\D 3KLQ\DZDW 9LFH &KDLUPDQ

7RWDO 5HPXQHUDWLRQ %DKW

w 7KDL 2OHRFKHPLFDOV &RPSDQ\ /LPLWHG 72/ RZQHG

1DPH 3RVLWLRQ 0U :LWRRQ 6LPDFKRNHGHH &KDLUPDQ

7RWDO 5HPXQHUDWLRQ %DKW

5HVLJQHG IURP WKH %RDUG RQ 0DU

w 13& 6DIHW\ DQG (QYLURQPHQWDO 6HUYLFH &RPSDQ\ /LPLWHG 13& 6 ( RZQHG

1DPH 3RVLWLRQ 7RWDO 5HPXQHUDWLRQ %DKW

0U 9HHUDVDN .RVLWSDLVDO 'LUHFWRU w 7KDL 7DQN 7HUPLQDO /LPLWHG 777 RZQHG

1DPH 0U 9HHUDVDN .RVLWSDLVDO

3RVLWLRQ 'LUHFWRU

7RWDO 5HPXQHUDWLRQ %DKW

w 377 &KHPLFDO ,QWHUQDWLRQDO 3ULYDWH /LPLWHG &+ ,QWHU RZQHG

1DPH 3RVLWLRQ 7RWDO 5HPXQHUDWLRQ 6LQJDSRUH 'ROODU

0U 9HHUDVDN .RVLWSDLVDO 'LUHFWRU w (PHU\ 2OHRFKHPLFDOV 0 6KQ %KG (0(5< &+ ,QWHU RZQHG

1DPH 3RVLWLRQ 0U 9HHUDVDN .RVLWSDLVDO 'LUHFWRU

7RWDO 5HPXQHUDWLRQ 0DOD\VLDQ 5LQJJLW

119

1XPEHU RI 6KDUHV DQG :DUUDQW KHOG E\ 'LUHFWRUV 1DPH

0U 1RQWLJRUQ .DQFKDQDFKLWUD &KDLUPDQ

$V RI 'HF $V RI 'HF &KDQJH 3DLG XS &DSLWDO 3DLG XS &DSLWDO 8S 'RZQ

%DKW %DKW 'XULQJ WKH <HDU 6KDUHKROGLQJ 6KDUHKROGLQJ 6KDUHV

6KDUHV 6KDUHV

(623 :DUUDQW 8QLWV

0U 3UDVHUW %XQVXPSXQ 9LFH &KDLUPDQ

0U :LWRRQ 6LPDFKRNHGHH ,QGHSHQGHQW 'LUHFWRU

3RO *HQ 1RSDGRO 6RPERRQVXE ,QGHSHQGHQW 'LUHFWRU

*HQ :LQDL 3KDWWL\DNXO ,QGHSHQGHQW 'LUHFWRU

0U 3DLEXO\D 3XQ\DYXWWL ,QGHSHQGHQW 'LUHFWRU

0U 6RPFKDL .XYLMLWVXZDQ ,QGHSHQGHQW 'LUHFWRU

0U 6RPEDW 6DUQWLMDUHH ,QGHSHQGHQW 'LUHFWRU

0U 3DQLFK 3RQJSLURGRP 'LUHFWRU

0U 3UDM\D 3KLQ\DZDW 'LUHFWRU

0U 7HYLQ 9RQJYDQLFK 'LUHFWRU

0U 9HHUDVDN .RVLWSDLVDO 'LUHFWRU DQG 6HFUHWDU\ WR WKH %RDUG RI 'LUHFWRUV )URP ([HUFLVH :DUUDQW LQ

120

Annual Report 2010 PTT Chemical Public Company Limited

1XPEHU RI 6KDUHV DQG :DUUDQW KHOG E\ &RPSDQ\ ([HFXWLYHV UHTXLUHG WR UHSRUW WKHLU SRUWIROLRV

0U 9HHUDVDN .RVLWSDLVDO 3UHVLGHQW &(2 0U -LDPVDN 1DQWDQDQDWH ([HFXWLYH 9LFH 3UHVLGHQW 2SHUDWLRQDO ([FHOOHQFH

$V RI 'HF $V RI 'HF 3DLG XS &DSLWDO 3DLG XS &DSLWDO &KDQJH %DKW %DKW 8S 'RZQ

6KDUHKROGLQJ 6KDUHKROGLQJ 'XULQJ WKH <HDU 6KDUHV 6KDUHV 6KDUHV

VSRXVH VKDUHV VSRXVH VKDUHV

0U 1DURQJ %XQGLWNDPRO ([HFXWLYH 9LFH 3UHVLGHQW 2OHILQV 6KDUHG )DFLOLWLHV

VSRXVH VKDUHV VSRXVH VKDUHV

1DPH

0U 'KDQHV &KDURHQVXSD\D ([HFXWLYH 9LFH 3UHVLGHQW 0DUNHWLQJ &RPPHUFLDO 6XSSO\ &KDLQ *RYHUQDQFH 0U $WKDYXGKL +LUXQEXUDQD ([HFXWLYH 9LFH 3UHVLGHQW VSRXVH VKDUHV

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

(623 :DUUDQW 8QLWV

VSRXVH VKDUHV

121

([HFXWLYH 5HPXQHUDWLRQ LQ 5HPXQHUDWLRQ 7RWDO 6DODU\ )ULQJH %HQHILWV &RPSDQ\ &RQWULEXWLRQ WR WKH 3URYLGHQW )XQG 7RWDO

7RWDO 3HUVRQ

5HPXQHUDWLRQ %DKW

1DPH

0U 1RQWLJRUQ .DQFKDQDFKLWUD [ 0U 3UDVHUW %XQVXPSXQ 0U :LWRRQ 6LPDFKRNHGHH [ [ 3RO *HQ 1RSDGRO 6RPERRQVXE *HQ :LQDL 3KDWWL\DNXO 0U 3DLEXO\D 3XQ\DYXWWL 0U 6RPFKDL .XYLMLWVXZDQ 0U 6RPEDW 6DUQWLMDUHH 0U 3DQLFK 3RQJSLURGRP 0U 3UDM\D 3KLQ\DZDW [ [ [ 0U 7HYLQ 9RQJYDQLFK 0U 9HHUDVDN .RVLWSDLVDO 'LUHFWRU QR UHVLJQHG IURP WKH %RDUG DQG WKH VXEVLGLDULHV FRPSDQ\ RQ )HEUXDU\

6XEVLGLDULHV

$VVRFLDWHV 5HODWHG &RPSDQLHV

'HWDLO RI 'LUHFWRUV RI 377 &KHPLFDO DQG LWV 6XEVLGLDULHV $VVRFLDWHV 5HODWHG &RPSDQLHV DV RI 'HFHPEHU

[

5HPDUNV 'LUHFWRU

[

0DQDJHPHQW

[ &KDLUPDQ

[ [

377&+ %3( 3773( 72/ 13& 6 ( &+ ,QWHU 777 7)$ $3 52+ (0(5< 33&/ 37730 917 377,&7 377 +0& 7,* ,53& 377$5 377(3 52& 3773/ 377 ,17(5 377 7$1. 723 377$& $3,

122 Annual Report 2010 PTT Chemical Public Company Limited

0U 9HHUDVDN .RVLWSDLVDO 0U -LDPVDN 1DQWDQDQDWH 0U 1DURQJ %XQGLWNDPRO 0U 'KDQHV &KDURHQVXSD\D 0U $WKDYXGKL +LUXQEXUDQD 0UV 3XQWLS 2XQJSDVXN 0U 3DWLSDUQ 6XNRUQGKDPDQ 0U 6XYLW 7LQQDFKRWH 0U 7KHHUDSRO 0XHQSDNGHH 0UV 9DUDQHH 8ERQSRRQSKRO 0U 7KLWLSRQJ &KXODSRUQVLULGHH

72/ 7)$ 13& 6 (

[

377 &KHPLFDO ,QWHUQDWLRQDO 3WH /WG (PHU\ 2OHRFKHPLFDOV 0 6GQ %KG 377 &KHPLFDO ,QWHUQDWLRQDO 3WH /WG $VLD 3DFLILF 52+

%LR 6SHFWUXP %LR 6SHFWUXP &R /WG 3770( 377 0DLQWHQDQFH DQG (QJLQHHULQJ &R /WG 777 7KDL 7DQN 7HUPLQDO /WG 7(; 7KDL (WKR[\ODWH &R /WG

&+ ,QWHU (0(5< $3 52+

%DQJNRN 3RO\HWK\OHQH 3OF 377 3RO\HWK\OHQH &R /WG 7KDL 6W\UHQLFV &R /WG 72& *O\FRO &R /WG 7KDL (WKDQRODPLQHV &R /WG %LR &UHDWLRQ &R /WG IRUPHUO\ NQRZQ DV 7KDL &KROLQH &KORULGH &R /WG

7KDL 2OHRFKHPLFDOV &R /WG 7KDL )DWW\ $OFRKRO &R /WG 13& 6DIHW\ DQG (QYLURQPHQWDO 6HUYLFH &R /WG

1DPH

6XEVLGLDULHV %3( 3773( 76&/ 72&*& ($ %LR &UHDWLRQ

$VVRFLDWHV 5HODWHG &RPSDQLHV

$VVRFLDWHV 33&/ ()7 37787 37730 377,&7 917 $3,

5HPDUNV 'LUHFWRU

377 3KHQRO &R /WG (DVWHUQ )OXLG 7UDQVSRUW &R /WG 377 8WLOLW\ &R /WG 377 3RO\PHU 0DUNHWLQJ &R /WG 377 ,&7 6ROXWLRQV &R /WG 9LQ\WKDL 3OF $OOLDQFH 3HWURFKHPLFDO ,QYHVWPHQW 6LQJDSRUH 3WH /WG

[

0DQDJHPHQW

[ &KDLUPDQ

5HODWHG &RPSDQLHV 377 377 3OF +0& +0& 3RO\PHUV &R /WG 7,* 7KDL ,QGXVWULDO *DV 3OF 377$5 377 $URPDWLFV DQG 5HILQLQJ 3OF 52& 5D\RQJ 2OHILQV &R /WG ,53& ,53& 3OF 3773/ 377 3RO\PHUV /RJLVWLF &R /WG 377 7$1. 377 7DQN 7HUPLQDO &R /WG 377 $& $VDKL &KHPLFDO &R /WG

377&+ %3( 3773( 72&*& ($ %LR &UHDWLRQ 72/ 13& 6 ( &+ ,QWHU 3770( 777 76&/ 7)$ $3 52+ (0(5< %LR 6SHFWUXP 37787 33&/ 37730 917 377,&7 ()7 377 3773/ $3,

6XEVLGLDULHV

'HWDLO RI ([HFXWLYHV RI 377 &KHPLFDO DQG LWV 6XEVLGLDULHV $VVRFLDWHV 5HODWHG &RPSDQLHV DV RI 'HFHPEHU

123

124

Annual Report 2010 PTT Chemical Public Company Limited

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

125

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

HPSRZHUPHQW DQG UHFRJQLWLRQ VFKHPHV $OO WKHVH DUH VXEMHFW WR H[HFXWLYHV HIILFLHQF\ DQG OHDGHUVKLS VNLOOV XQGHU FRQWLQXRXV LPSURYHPHQW RQ WKH SDUW RI WKH &RPSDQ\ ,Q NHHSLQJ XS ZLWK WKH UDSLG FKDQJHV RI WKH SUHVHQW EXVLQHVV HQYLURQPHQW 377 &KHPLFDO UHFRJQL]HV WKH QHHG IRU FRQWLQXRXV LPSURYHPHQW RI LWV RUJDQL]DWLRQ DQG SHUVRQQHO (PSOR\HH HQJDJHPHQW PXVW EH DWWDLQHG WKURXJK D IDLU FRPSHQVDWLRQ PDQDJHPHQW V\VWHP 7KH &RPSDQ\ PXVW DOVR VWULYH IRU UHFRJQLWLRQ DV WKH HPSOR\HU RI FKRLFH WKXV DWWUDFWLQJ FDSDEOH SURVSHFWLYH HPSOR\HHV $OO WKHVH HQKDQFH WKH &RPSDQ\ V EXVLQHVV FRPSHWLWLYH DGYDQWDJHV

To us, what matters most is good corporate governance. That is, business based on fairness, integrity, and transparency-which happens to be today's universal business requirements in addition to routine business. Stakeholders do count.

,QWHJULW\ 9DOXH

128

Annual Report 2010 PTT Chemical Public Company Limited

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

129

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w 9DOXLQJ VKDUHKROGHUV PHHWLQJV HDFK \HDU WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH UHTXLUHV WKH &RPSDQ\ WR SUHVHQW D VXPPDU\ RI PHHWLQJ SUHSDUDWLRQV IRU FRQVLGHUDWLRQ DKHDG RI WLPH w 1RWLI\ VKDUHKROGHU RI WKH VFKHGXOH DQG DJHQGD RI WKH $*0 YLD WKH 6(7 V\VWHP LPPHGLDWHO\ DIWHU WKH %RDUG SDVVHG WKH UHVROXWLRQ WR KROG D PHHWLQJ 7KH QRWLILFDWLRQ RI WKH PHHWLQJ ZDV DOVR SRVWHG RQ WKH &RPSDQ\ V ZHEVLWH DIWHU WKH DQQRXQFHPHQW WKURXJK 6(7 V V\VWHP

130

Annual Report 2010 PTT Chemical Public Company Limited

w $OORZLQJ HDFK VKDUHKROGHU WR SURSRVH DJHQGD LWHPV IRU FRQVLGHUDWLRQ DW WKH $*0 PHHWLQJ DKHDG RI WKH DFWXDO PHHWLQJ GDWH DQG DOVR WR QRPLQDWH TXDOLILHG FDQGLGDWHV IRU HOHFWLRQ DV 'LUHFWRUV 7KH %RDUG LQVWLWXWHG FULWHULD WR VXSSRUW VKDUHKROGHUV H[HUFLVLQJ RI WKHLU ULJKWV 7KH %RDUG H[WHQGHG WKH SHULRG ZKHUHE\ VKDUHKROGHUV ZHUH DOORZHG WR SURSRVH PHHWLQJ DJHQGD DQG GLUHFWRU QRPLQHHV XS WR WKUHH PRQWKV IURP 2FWREHU WR 'HFHPEHU RI HDFK \HDU 7KLV LV WR DOORZ WKH %RDUG DPSOH WLPH LQ FRQVLGHULQJ ZKHWKHU WR LQFOXGH WKH VKDUHKROGHUV SURSRVDOV WR WKH PHHWLQJ DJHQGD RU WR VHFXUH PRUH LQIRUPDWLRQ IRU WKH FRQVLGHUDWLRQ w 6KDUHKROGHUV ZHUH DOORZHG WR VXEPLW ZULWWHQ TXHVWLRQV DERXW DJHQGD LWHPV WR WKH %RDUG DKHDG RI WKH PHHWLQJ GDWH WKURXJK &RPSDQ\ V ZHEVLWH E\ ID[ DQG E\ OHWWHU w $VLGH IURP QRWLILFDWLRQ RI WKH PHHWLQJ RQ 7KDL DQG (QJOLVK ODQJXDJH GDLO\ QHZVSDSHUV IRU WKUHH FRQVHFXWLYH GD\V DV UHTXLUHG E\ ODZ PHHWLQJ QRWLFHV DQG GRFXPHQWV ZHUH GLVWULEXWHG LQ ERWK ODQJXDJHV WKURXJK ZHEVLWH RQH PRQWK DKHDG RI WKH PHHWLQJ GDWH 7KH GRFXPHQWV ZHUH LGHQWLFDO WR ZKDW WKH &RPSDQ\ VHQG WR DOO VKDUHKROGHUV WR DOORZ DPSOH WLPH IRU VKDUHKROGHUV FRQVLGHUDWLRQ EHIRUH WKH PHHWLQJ w 7KH &RPSDQ\ KDV LPSURYHG WKH SDSHU GRFXPHQW PDLOLQJ SURFHVV WR GD\V DKHDG RI WKH $*0 VR WKDW VKDUHKROGHUV PD\ KDYH PRUH WLPH WR GLJHVW WKH GHWDLOV EHIRUH WKH PHHWLQJ DQG SUHSDUH WKHLU SUR[LHV LI WKH\ DUH XQDEOH WR DWWHQG WKH PHHWLQJ w 7KH DQQXDO UHSRUW ZDV DYDLODEOH LQ D ELOLQJXDO &' 520 DV UHTXHVWHG E\ 6(7 DQG WKH SULQWHG HGLWLRQ ZDV DYDLODEOH XSRQ UHTXHVW WKURXJK H PDLO WHOHSKRQH ID[ DQG OHWWHU 7KH SULQWHG HGLWLRQ ZDV PDLOHG DV VRRQ DV UHTXHVWV ZHUH DFNQRZOHGJHG DQG DOVR DYDLODEOH DW WKH $*0 w $GHTXDWH DQG FOHDU LQIRUPDWLRQ ZDV GLVFORVHG LQ WKH PHHWLQJ QRWLFHV DORQJ ZLWK WKH RSLQLRQV RI WKH %RDUG w 7KURXJK WKH PHHWLQJ QRWLFHV VKDUHKROGHUV ZHUH LQIRUPHG RI PHHWLQJ SDUWLFLSDWLRQ FULWHULD SURYLGLQJ WKHP ZLWK D OLVW RI DOO LQGHSHQGHQW GLUHFWRUV ZKR FRXOG DFW DV VKDUHKROGHUV SUR[\ ZLWK WKH SUR[\ IRUPV GHVLJQHG E\ WKH 0LQLVWU\ RI &RPPHUFH DQG WKH SUR[\ IRUP RQ ZKLFK VKDUHKROGHUV FDQ VWDWH WKHLU YRWLQJ RSLQLRQV w )RU WKH DJHQGD RI GLUHFWRUV DSSRLQWPHQW WKH IXOO QDPHV RI GLUHFWRU QRPLQHHV DORQJ ZLWK WKHLU HGXFDWLRQDO EDFNJURXQG DQG FDUHHU VXPPDU\ ,QFOXGLQJ WKH LQIRUPDWLRQ RQ VHOHFWLRQ FULWHULD IRU WKH QRPLQDWLRQ RI GLUHFWRUV DUH GLVFORVHG IRU VKDUHKROGHUV FRQVLGHUDWLRQ

131

2Q WKH PHHWLQJ GDWH w 7KH PHHWLQJ YHQXH PHHWLQJ VHTXHQFH UHJLVWUDWLRQ DQG RIILFHUV ZHUH SUHSDUHG WR IDFLOLWDWH DQG VSHHG XS WKH UHJLVWUDWLRQ SURFHVV 5HJLVWUDWLRQ ZDV DOORZHG WKURXJK WKH EDU FRGH V\VWHP WZR KRXUV DKHDG RI WKH PHHWLQJ DQG VKDUHKROGHUV FDQ UHJLVWHU IRU WKH PHHWLQJ DIWHU WKDW LQ RUGHU WR PDLQWDLQ WKHLU ULJKWV w $Q H[KLELWLRQ ZDV VWDJHG WR SURYLGH FRUSRUDWH LQIRUPDWLRQ $ 6KDUHKROGHUV &RUQHU ZDV DOVR VHW XS LQ IURQW RI WKH PHHWLQJ URRP ZKHUH GLUHFWRUV VHQLRU PDQDJHUV DQG RIILFHUV IURP YDULRXV XQLWV OLNH ,QYHVWRU 5HODWLRQV $FFRXQWLQJ DQG )LQDQFH &RUSRUDWH 6WUDWHJLF 3ODQQLQJ 0DUNHWLQJ DQG &RUSRUDWH &RPPXQLFDWLRQV ZHUH RQ KDQG WR DQVZHU TXHVWLRQV RI VKDUHKROGHUV LQWHUHVW w 7KH &RPSDQ\ WHOHFDVW WKH PHHWLQJ YLD D FORVHG FLUFXLW 79 V\VWHP VR WKDW VKDUHKROGHUV RXWVLGH WKH PHHWLQJ URRP FDQ VWD\ LQIRUPHG WKURXJKRXW WKH PHHWLQJ w 7KH &KDLUPDQ WKH 6XE FRPPLWWHH 'LUHFWRUV DQG WKH 3UHVLGHQW &(2 LQFOXGLQJ H[HFXWLYHV H[WHUQDO DXGLWRU DQG OHJDO DGYLVRUV DWWHQGHG WKH $*0 WR H[SODLQ DQG FODULI\ TXHVWLRQV w 7KH PHHWLQJ VWDUWHG SXQFWXDOO\ DQG WKH &KDLUPDQ LQWURGXFHG WKH GLUHFWRUV H[HFXWLYHV DQG WKH DXGLWRU ZKR MRLQHG WKH TXHVWLRQ DQG DQVZHU VHVVLRQ DQG WKH OHJDO FRXQVHORU ZKR RYHUVDZ WKH YRWLQJ UHJLVWUDWLRQ DQG SURWHFWHG VKDUHKROGHUV ULJKWV DQG YROXQWHHUV IURP WKH 7KDL ,QYHVWRUV $VVRFLDWLRQ ZKLFK MRLQHG WKH PHHWLQJ TXDOLW\ DVVHVVPHQW SURFHVV 7KH &KDLUPDQ DOVR FOHDUO\ QRWLILHG DOO VKDUHKROGHUV RI WKH PHHWLQJ FULWHULD DV ZHOO DV WKH YRWLQJ PHWKRG DQG SURFHGXUH w $PSOH WLPH ZDV VHW DVLGH IRU VKDUHKROGHUV WR DVN TXHVWLRQV RQ UHOHYDQW LVVXHV DQG WKH &RPSDQ\ V EXVLQHVV TXHVWLRQV VXEPLWWHG LQ DGYDQFH DUH FODULILHG RU DQVZHUHG RQH E\ RQH w 7KH DQQXDO SHUIRUPDQFH DQG YLHZV RQ IXWXUH EXVLQHVV RSHUDWLRQV ZHUH SUHVHQWHG WKURXJK D YLGHR IRU DXGLR DQG YLVXDO SUHVHQWDWLRQ WR DOO VKDUHKROGHUV w 6KDUHKROGHUV ZHUH DOORZHG WR YRWH IRU QHZ GLUHFWRUV LQGLYLGXDOO\ WKURXJK WKH EDOORWV 5HWLUHG GLUHFWRUV OHIW WKH PHHWLQJ URRP VR WKDW VKDUHKROGHUV FRXOG IUHHO\ GLVFXVV DQG FDVW YRWHV w $ FRPSXWHUL]HG YRWLQJ FDOFXODWLRQ V\VWHP ZDV SUHVHQWHG IRU DOO DJHQGD DQG QHXWUDO RXWVLGHUV FRXQWHG WKH EDOORWV 7KH &KDLUPDQ WKHQ DQQRXQFHG WKH YRWHV ZKLFK DSSHDUHG RQ WKH VFUHHQ DQG FORVHG FLUFXLW 79 IRU HTXDO GLVFORVXUH WR VKDUHKROGHUV w 7KH PHHWLQJ FRQWLQXHG IRU WKUHH KRXUV IURP S P WR S P ZLWKRXW DGGLWLRQDO DJHQGD RQ WRS RI WKDW QRWLILHG WR WKH VKDUHKROGHUV LQ WKH PHHWLQJ QRWLFHV

132

Annual Report 2010 PTT Chemical Public Company Limited

$IWHU WKH PHHWLQJ GDWH w 7KH &RPSDQ\ 6HFUHWDU\ UHFRUGHG DOO VLJQLILFDQW LQIRUPDWLRQ IURP WKH $*0 LQFOXGLQJ WKH UHVROXWLRQV DQG DOO YRWHV RQ HDFK DJHQGD DQG DEVWDLQHG YRWHV DORQJ ZLWK UHFRUGHG DOO TXHVWLRQV DQG DQVZHUV DV ZHOO DV WKH IXOO QDPHV RI WKH VKDUHKROGHUV ZKR DVNHG TXHVWLRQV DQG WKRVH ZKR UHVSRQG 7KH PLQXWHV RI PHHWLQJ VLJQHG E\ WKH &KDLUPDQ VKRXOG EH GLVFORVHG ZLWKLQ GD\V DIWHU WKH PHHWLQJ RQ WKH &RPSDQ\ V ZHEVLWH DQG WKH PLQXWHV ZHUH SURSHUO\ GRFXPHQWHG IRU DXGLWLQJ DQG UHIHUHQFH w 7KH &RPSDQ\ UHFRUGHG WKH SURFHHGLQJ DW WKH PHHWLQJ DQG SODFHG LW RQ LWV ZHEVLWH IRU WKH LQIRUPDWLRQ RI WKRVH DEVHQW ,QWHUHVWHG VKDUHKROGHUV PD\ ILOH UHTXHVWV IRU FRSLHV LQ WKH 9&' IRUPDW w 7R HQVXUH VKDUHKROGHUV RI IXOO GLYLGHQG SD\PHQW DIWHU WKH SD\PHQW KDG EHHQ PDGH DV DSSURYHG E\ $*0 WKH &RPSDQ\ QRWLILHG WKHP DERXW WKH UHVROXWLRQ WKURXJK 6(7 V FKDQQHO DQG FRRUGLQDWHG ZLWK WKH UHJLVWUDU DW 7KDLODQG 6HFXULWLHV 'HSRVLWRU\ &R /WG WR HQVXUH FRPSOHWH DQG DFFXUDWH ULJKWV WR WKH GLYLGHQGV 3D\PHQW ZDV PDGH VRRQHU WKDQ UHTXLUHG E\ ODZ )RU GLYLGHQGV ZHUH SDLG RXW RQ $SULO w ,Q DGGLWLRQ WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH VFUHHQHG WKH UHFRPPHQGDWLRQV DQG YLHZV UHFHLYHG IURP VKDUHKROGHUV DQG DVVHVVHG WKH $*0 WR FRQVWDQWO\ LPSURYH VKDUHKROGHUV PHHWLQJV w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w :ULWWHQ JXLGHOLQHV RQ LQVLGH LQIRUPDWLRQ DUH LQFRUSRUDWHG LQ WKH &RUSRUDWH *RYHUQDQFH DQG %XVLQHVV &RGH RI &RQGXFW +DQGERRN ZKLFK DOO GLUHFWRUV H[HFXWLYHV DQG HPSOR\HHV PXVW KRQRU 7KH JXLGHOLQHV FRYHU WUDQVDFWLRQV RQ WKH &RPSDQ\ V VKDUHV WKURXJK LQVLGH LQIRUPDWLRQ VDIHJXDUGLQJ DQG GLVFORVXUH RI WKH LQIRUPDWLRQ DQG JLYLQJ RSLQLRQV WR RXWVLGHUV

133

w *XLGHOLQHV RQ WKH SURKLELWHG &RPSDQ\ V VWRFN WUDQVDFWLRQV RI GLUHFWRUV H[HFXWLYHV DQG UHODWHG SHUVRQV ZKLFK EDU GLUHFWRUV H[HFXWLYHV DQG UHODWHG SHUVRQV PHDQLQJ VSRXVHV DQG XQGHU DJHG FKLOGUHQ IURP EX\LQJ RU VHOOLQJ &RPSDQ\ VKDUHV GD\V EHIRUH WKH GLVFORVXUH RI WKH ILQDQFLDO VWDWHPHQWV IURP WKH HQG RI HDFK TXDUWHU 7KH\ DUH DOORZHG WR FRQGXFW VXFK WUDQVDFWLRQV KRXUV DIWHU WKH GLVFORVXUH WR 6(7 w 'LUHFWRUV DQG WKH H[HFXWLYHV DUH UHTXLUHG WR UHSRUW WR 6(& DOO WKHLU FKDQJHV LQ VKDUHKROGLQJ LQFOXGLQJ WKRVH RI VSRXVHV DQG XQGHU DJHG FKLOGUHQ XQGHU $UWLFOH RI WKH 6HFXULWLHV DQG ([FKDQJH $FW 7KH\ PXVW DOVR PDNH UHJXODU UHSRUWV RQ DQ\ FKDQJH LQ VKDUHKROGLQJ WR WKH %RDUG 7KH &RPSDQ\ 6HFUHWDU\ FRPSLOHV WKH GDWD IRU SUHVHQWDWLRQ DV DQ DJHQGD LWHP DW WKH %RDUG PHHWLQJ w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

7DQJLEOH 3UDFWLFH w 377 &KHPLFDO SD\V GXH DWWHQWLRQ WR WKH ULJKWV DQG HTXDOLW\ RI VKDUHKROGHUV E\ YLVLEO\ SURYLGLQJ WKHP ZLWK SURSHU FRPSOHWH DQG UHJXODU LQIRUPDWLRQ

134

Annual Report 2010 PTT Chemical Public Company Limited

3ROLF\ &XVWRPHUV 7KH &RPSDQ\ LV FRPPLWWHG WR FUHDWLQJ VDWLVIDFWLRQ DQG FRQILGHQFH IRU FXVWRPHUV DQG WKH JHQHUDO SXEOLF RQ TXDOLW\ JRRGV DQG VHUYLFHV DW IDLU SULFHV 7KH VWDQGDUGV KDYH EHHQ HOHYDWHG DQG WKH UHODWLRQVKLS KDV EHHQ QXUWXUHG DQG VXVWDLQHG

7DQJLEOH 3UDFWLFH w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

%XVLQHVV 3DUWQHUV 7KH &RPSDQ\ WDNHV LQWR DFFRXQW EXVLQHVV HTXDOLW\ LQWHJULW\ DQG PXWXDO EHQHILW WKURXJK VWULFW FRPSOLDQFH ZLWK WKH ODZ DQG PXWXDOO\ DJUHHG UXOHV DV ZHOO DV EXVLQHVV HWKLFV

w $ SURFHVV KDV EHHQ SXW LQ SODFH IRU VXSSOLHU UHODWLRQVKLS PDQDJHPHQW DV ZHOO DV D VDWLVIDFWLRQ VXUYH\ DQG FRPPXQLFDWLRQ IRU EXVLQHVV SDUWQHUV LQIRUPDWLRQ FRQFHUQLQJ &RPSDQ\ SROLF\ RI TXDOLW\ DQG JRRG FRUSRUDWH JRYHUQDQFH

%XVLQHVV &RPSHWLWRUV 7KH &RPSDQ\ WUHDWV FRPSHWLWRUV XQGHU LQWHUQDWLRQDO VWDQGDUGV DQG WKH IUDPHZRUN RI WKH $QWL &RPSHWLWLRQ $FW )DLU FRPSHWLWLRQ UXOHV DUH KRQRUHG

w 377 &KHPLFDO GRHV QRW VHHN FRPSHWLWRUV

FRQILGHQWLDO LQIRUPDWLRQ WKURXJK GLVKRQHVW PHDQV GRHV QRW GLVFUHGLW WKHP WKURXJK DFFXVDWLRQV RU VODQGHUV RU DWWDFN FRPSHWLWRUV JURXQGOHVVO\

&UHGLWRUV 7KH &RPSDQ\ IDLUO\ WUHDWV FUHGLWRUV LQ w 377 &KHPLFDO JLYHV HTXDO RSSRUWXQLWLHV WR ILQDQFLDO OLQH ZLWK JRRG SUDFWLFHV DQG FRQGLWLRQV DQG KRQRUV LQVWLWXWLRQ GHILQHV PDMRU FRQGLWLRQV LQ ORDQ DJUHHPHQWV UHSD\PHQW VFKHGXOHV XQGHU WKH VDPH VWDQGDUG DQG QXUWXUHV JRRG UHODWLRQV ZLWK WKHP WKURXJK DFWLYLWLHV OLNH PHHWLQJV VRFLDO IXQFWLRQV DQG SODQW WRXULQJ

135

3ROLF\ *RYHUQPHQW 7KH &RPSDQ\ RXWOLQHV WKH FRGH RI SUDFWLFHV IRU WKH UHJXODWRUV DQG UHJXODWLRQ VHFWRUV LQ OLQH ZLWK UXOHV RI UHVSHFWLYH FRXQWULHV WKDW LW LQYHVWV LQ WR DYRLG LQDSSURSULDWH DFWLRQV

7DQJLEOH 3UDFWLFH w 377 &KHPLFDO IRUJHV FRUGLDO UHODWLRQV ZLWK SXEOLF VHFWRU RIILFLDOV ZLWKLQ UHDVRQDEOH ERXQGV 6HPLQDUV DQG PHHWLQJV DUH KHOG RQ VHQVLEOH RFFDVLRQV ,W FRRSHUDWHV E\ VKDULQJ LQIRUPDWLRQ EHQHILFLDO WR WKH SXEOLF VHFWRU DQG &RPSDQ\ EXVLQHVV DOLNH DV QHFHVVDU\ DQG DV VHHQ VXLWDEOH ZLWKRXW KXUWLQJ &RPSDQ\ EXVLQHVV

(PSOR\HHV 7KH &RPSHQVDWLRQ DQG ZHOIDUH VFKHPH LV FRQFUHWHO\ LGHQWLILHG DQG IDLUO\ FRQVLGHUHG

w 377 &KHPLFDO LQWURGXFHG D PDQDJHPHQW SURFHVV OLQNLQJ HPSOR\HHV SHUIRUPDQFH WR IDLU DZDUGV DQG SD\ YDOXHV GHYHORSPHQW DQG VKDULQJ RI H[SHUWLVH DQG FRPSHWHQF\ OLVWHQV WR YLHZV DQG UHFRPPHQGDWLRQV IURP DOO HPSOR\HHV HTXDOO\ DQG ORRNV DIWHU WKH VDIHW\ DQG ZRUN HQYLURQPHQW

&RPPXQLWLHV DQG 6RFLHW\ 7KH &RPSDQ\ RSHUDWHV UHVSRQVLEO\ IRU WKH EHQHILW RI FRPPXQLWLHV VRFLHW\ DQG HQYLURQPHQW DQG IRU VDIHW\ OLYLQJ TXDOLW\ DQG HQYLURQPHQWDO FRQVHUYDWLRQ ,W SURPRWHV HIILFLHQW HQHUJ\ XVH UHFRJQL]HV WKH OLYLQJ TXDOLW\ RI FRPPXQLWLHV DQG VRFLHW\ ZLWK GXH FRQFHUQ IRU WKRVH OLYLQJ LQ VXUURXQGLQJ DUHDV DQG DW WKH QDWLRQDO OHYHO 3DUWLDO SURILWV DUH XVHG WR ILQ DQFH FRPPXQLW\ DQG VRFLDO GHYHORSPHQW SURMHFWV ,W RSHUDWHV ZLWK HQYLURQPHQWDO FRQFHUQV WKURXJK WKH IDFLOLW\ FRQVWUXFWLRQ SURFHVV WHFKQRORJ\ VHOHFWLRQ ZDVWH PDQDJHPHQW V\VWHP DQG UHVHDUFK DQG GHYHORSPHQW IRU HQHUJ\ HIILFLHQW LQQRYDWLRQV

w 377 &KHPLFDO VXSSRUWV YDULRXV SURMHFWV ZKHWKHU WKH\ DUH LWV RZQ RU WKRVH RI RWKHU HQWLWLHV DQG IRXQGDWLRQV VR DV WR GHYHORS FDSDELOLWLHV ZKHWKHU LW EH LQ HGXFDWLRQ RFFXSDWLRQ VFLHQFH WHFKQRORJ\ RU SXEOLF VHUYLFHV HPHUJHQF\ KHOS WR QHDUE\ FRPPXQLWLHV DQG DW WKH QDWLRQDO OHYHO 7KH &RPSDQ\ DOVR VXSSRUW QHDUE\ DV ZHOO DV WKH QDWLRQDO FRPPXQLWLHV ZLWK HPHUJHQF\ FHQWHU

2FFXSDWLRQDO 6DIHW\ 7KH &RPSDQ\ KDV HPSKDVL]HG RFFXSDWLRQDO VDIHW\ DQG KHDOWK $Q RFFXSDWLRQDO VDIHW\ DQG KHDOWK SROLF\ LV RXWOLQHG DQG UHYLHZHG DQG JRRG SUDFWLFHV DUH LPSOHPHQWHG IRU VXVWDLQDEOH GHYHORSPHQW

w 377 &KHPLFDO RSWV IRU HIIHFWLYH SURGXFWLRQ WHFKQRORJLHV DQG ZDVWH GLVSRVDO SURFHVVHV DSDUW IURP GHYHORSLQJ LQQRYDWLRQV WR SURPRWH HIILFLHQW HQHUJ\ FRQVXPSWLRQ WUDLQLQJ DQG FXOWLYDWLRQ RI DZDUHQHVV RI VDIHW\ DQG WKH HQYLURQPHQW IRU HPSOR\HHV DQG UHJXODUO\ HQJDJHG ZRUNHUV

136

Annual Report 2010 PTT Chemical Public Company Limited

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w 7KH ILQDQFLDO VWDWHPHQWV PXVW EH DFFXUDWH FRPSOHWH DQG IDFWXDO DFFRUGLQJ WR DFFRXQWLQJ VWDQGDUGV 7KH\ DUH DXGLWHG E\ WKH LQGHSHQGHQW DXGLWRU DQG WKH $XGLW &RPPLWWHH w 7KH %RDUG EHDUV UHVSRQVLELOLW\ IRU WKH ILQDQFLDO VWDWHPHQWV WKURXJK D UHSRUW RI UHVSRQVLELOLW\ VLJQHG E\ WKH &KDLUPDQ DQG WKH 3UHVLGHQW &(2 DQG LQFOXGHG LQ WKH DQQXDO UHSRUW DORQJ ZLWK WKH DXGLWRU V UHSRUW w 7KH DQQXDO DQG TXDUWHUO\ EDODQFH VKHHWV DUH UHYLHZHG DQG UHSRUWHG WR 6(& DQG 6(7 DQG GLVFORVHG WR VKDUHKROGHUV LQYHVWRUV SULRU WR WKH GHDGOLQH w .H\ LQIRUPDWLRQ ILQDQFLDO DQG QRQ ILQDQFLDO LV SURSHUO\ FRPSOHWHO\ DQG WUDQVSDUHQWO\ GLVFORVHG DIWHU GXH H[DPLQDWLRQ ,Q WKH &RPSDQ\ GXO\ REVHUYHG DOO UHTXLUHPHQWV RI 6(& DQG 6(7 w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

137

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w 7KH &RPSDQ\ V NH\ FXUUHQW DQG FRPSOHWH LQIRUPDWLRQ LQ OLQH ZLWK WKH FRUSRUDWH JRYHUQDQFH SUDFWLFHV DUH GLVFORVHG WKURXJK )RUP DQG WKH &RPSDQ\ V ZHEVLWH ZZZ SWWFKHPJURXS FRP DYDLODEOH LQ 7KDL DQG (QJOLVK $FFHVV LV RSHQ IRU TXHVWLRQV DQG LQIRUPDWLRQ GRZQORDGV w 7KH ZHEVLWH LV UHJXODUO\ XSGDWHG ZLWK FXUUHQW LQIRUPDWLRQ DQG OLQNV WR DOO 'HSDUWPHQWV w 7KH &RPSDQ\ V 9LVLRQ 0LVVLRQ *RDOV DQG )LQDQFLDO 3HUIRUPDQFH KDYH EHHQ GLVFORVHG LQWHUQDOO\ DQG H[WHUQDOO\ E\ WKH 3UHVLGHQW &(2 )RU H[WHUQDO FRPPXQLFDWLRQ WKHUH DUH SUHVV FRQIHUHQFHV LQWHUYLHZV DQG SUHVHQWDWLRQV RI YLHZV XQGHU WKH \HDU SODQ RU RQ SDUWLFXODU RFFDVLRQV VLWXDWLRQV w ,QWHUQDOO\ WKH 3UHVLGHQW &(2 FRPPXQLFDWHV WKH LQIRUPDWLRQ WKURXJK WKH DQQXDO FRQIHUHQFH WR DOO HPSOR\HHV RI FRPSDQLHV LQ WKH 377 &KHP *URXS SURYLGLQJ WKHP DQ RSSRUWXQLW\ WR PHHW H[HFXWLYHV PDQDJHPHQW OHDUQ DQG XQGHUVWDQG WKH 377 &KHP *URXS V JXLGHOLQHV DQG EXVLQHVV GLUHFWLRQ ,QWHUQDO FRPPXQLFDWLRQ LV FDUULHG RXW FRQWLQXDOO\ ,QIRUPDWLRQ GLVFORVXUH FKDQQHOV DQG UHVSRQVLEOH SDUWLHV

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w 6HQLRU H[HFXWLYHV WDNH SDUW LQ ,QYHVWRU 5HODWLRQV DFWLYLWLHV LQFOXGLQJ PHHWLQJV ZLWK LQYHVWRUV DQG VHFXULWLHV DQDO\VWV XQGHU DQ DQQXDO VFKHGXOH WR FODULI\ DQG DQVZHU TXHVWLRQV UHJDUGLQJ WKH &RPSDQ\ V RSHUDWLRQ 6XFK LQIRUPDWLRQ LV FOHDUO\ SUHVHQWHG DQG SRVWHG RQ WKH ZHEVLWH DIWHU HDFK PHHWLQJ $ TXHVWLRQQDLUH LV DOVR SUHSDUHG WR PHDVXUH WKH VDWLVIDFWLRQ RI DQDO\VWV WRZDUGV WKH SHUIRUPDQFH RI ,QYHVWRU 5HODWLRQV IRU IXWXUH HIILFLHQF\ LPSURYHPHQW

138

Annual Report 2010 PTT Chemical Public Company Limited

w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w ,QWHUQDWLRQDO PHHWLQJV DQG URDG VKRZV IRU LQYHVWRUV LQ $VLD (XURSH DQG WKH 8QLWHG 6WDWHV D WRWDO RI PHHWLQJV w 0HHWLQJV ZLWK ORFDO LQGLYLGXDO DQG LQVWLWXWLRQDO LQYHVWRUV w 4XDUWHUO\ 6HFXULWLHV $QDO\VWV &RQIHUHQFHV WR SUHVHQW WKH &RPSDQ\ V ILQDQFLDO GDWD DQG VRFLDO UHVSRQVLELOLW\ DIWHU WKH GLVFORVXUH RI WKH ILQDQFLDO GDWD WR WKH 6(7 w $UUDQJLQJ D WRWDO RI FRPSDQ\ YLVLWV DQG FRQIHUHQFH FDOOV IRU WKH &RPSDQ\ V H[HFXWLYHV DV UHTXHVWHG E\ VKDUHKROGHUV LQYHVWRUV DQG DQDO\VWV w 5HJXODU UHSRUWV WR 6(7 DV UHTXLUHG E\ 6(7 V FRUSRUDWH JRYHUQDQFH UHJXODWLRQV DQG SULQFLSOHV w $GGUHVVLQJ WHOHSKRQH FDOOV DQG H PDLOV IURP VKDUHKROGHUV LQYHVWRUV DQDO\VWV DQG FRQFHUQHG DJHQFLHV w 'LVFORVH NH\ &RPSDQ\ QRWLILFDWLRQ LQFOXGLQJ QRWLILFDWLRQV WR 6(7 VKDUHKROGHUV PHHWLQJ QRWLFHV DQG VKDUH SULFHV WKURXJK WKH &RPSDQ\ V ZHEVLWH XQGHU ,QYHVWRU ,QIRUPDWLRQ w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w +ROG DQ DQQXDO SUHVV FRQIHUHQFH IRU DQQRXQFLQJ WKH LQYHVWPHQW SODQV RI WR WKH PHGLD VWDWLRQHG DW WKH 0LQLVWU\ RI (QHUJ\ 0LQLVWU\ RI ,QGXVWU\ DQG 6(7 w 2UJDQL]HG H[HFXWLYH H[FOXVLYH LQWHUYLHZV IRU YDULRXV PHGLD DYHUDJLQJ WLPHV HDFK TXDUWHU w 7RJHWKHU ZLWK 6FLHQFH ,QQRYDWLRQ 'HSDUWPHQW RUJDQL]HG WKH 2SHQ ,QQRYDWLRQ HYHQW WR SURPRWH WKH &RSDQ\ V 5 ' WHFKQRORJ\ DQG LQYLWHG WKH PHGLD WR YLVLW WKH 6FLHQFH ,QQRYDWLRQ &HQWHU LQ 5D\RQJ w ,QYLWHG WKH PHGLD VWDWLRQHG DW WKH 0LQLVWU\ RI (QHUJ\ 0LQLVWU\ RI ,QGXVWU\ DQG 6(7 WR MRLQ WKH LQDXJXUDWLRQ RI WKH (PHUJHQF\ &RQWURO &HQWHU ZKLFK VHUYHV DV WKH FHQWHU IRU HPHUJHQF\ SUHYHQWLRQ DQG UHVSRQVH WRJHWKHU ZLWK HQVXULQJ VDIHW\ RFFXSDWLRQDO KHDOWK DQG FRPPXQLW\ HQYLURQPHQW LQ 5D\RQJ

139

$SSRLQWPHQW RI D &65 &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\ 'HSDUWPHQW UHVSRQVLEOH IRU WKH FRPPXQLFDWLRQ RI LQIRUPDWLRQ H[SHFWDWLRQV RU IHHGEDFN REWDLQHG IURP VWDNHKROGHUV DQG IRU DQDO\]LQJ VXFK LQIRUPDWLRQ IRU LWV LPSDFW ERWK LQWHUQDOO\ DQG H[WHUQDOO\ WR WKH FRPSDQ\ EHIRUH KDQGLQJ WKH ILQGLQJV WR WKH &65 6WHHULQJ &RPPLWWHH RI 377 &KHP *URXS ZKLFK LQ WXUQ SURYLGHV SROLFLHV IRU WKH RXWOLQH RI VWUDWHJLF SODQV 7KH &RPSDQ\ V VXVWDLQDEOH GHYHORSPHQW VWUDWHJ\ LV LPSOHQHQWHG DQG PRQLWRUHG FORVHO\ LQ RUGHU WR DFFRPSOLVK WKH REMHFWLYH VHW 7KH &65 VWHHULQJ &RPPLWWHH WKHQ UHSRUWV VXFK SHUIRUPDQFH RU DQ\ LVVXHV IRXQG WR WKH %RDUG IRU DFNQRZOHGJPHQW IRU IXWKHU LPSURYHPHQW 7KH &65 'HSDUWPHQW DOVR VXEPLW D VXVWDLQDELOLW\ UHSRUW IRU WR *OREDO 5HSRUWLQJ ,QLWLDWLYH *5, WKH ZRUOG V PRVW SUHYDOHQW VWDQGDUGV IRU VXVWDLQDELOLW\ UHSRUWLQJ 7KH VXVWDLQDELOLW\ UHSRUW LV VXEPLWWHG DORQJ ZLWK WKH DQQXDO UHSRUW WR WKH VKDUHKROGHUV DQG GLVWULEXWHG WR RWKHU VWDNHKROGHUV LW LV DOVR DFFHVVLEOH RQ WKH &RPSDQ\ V ZHEVLWH 5HVSRQVLELOLWLHV RI WKH %RDUG RI 'LUHFWRUV 7KH %RDUG SOD\V D NH\ UROH LQ EXVLQHVV VXSHUYLVLRQ LQ WKH &RPSDQ\ V EHVW LQWHUHVWV 7KHLU UHVSRQVLELOLW\ WR GXWLHV DQG SHUIRUPDQFH LV WKHUHIRUH D FRUH SULQFLSOH RI JRRG FRUSRUDWH JRYHUQDQFH &RQGXFWLQJ WKHLU GXWLHV ZLWK LQWHJULW\ WUDQVSDUHQF\ DQG SUXGHQFH WKH %RDUG QRW RQO\ XQGHUVWDQGV WKH UROHV DQG UHVSRQVLELOLW\ UHTXLUHG E\ ODZV UHJXODWLRQV &RPSDQ\ UHJXODWLRQV VKDUHKROGHUV UHVROXWLRQV DQG WKH SULQFLSOHV RI JRRG FRUSRUDWH JRYHUQDQFH EXW DOVR UHIUDLQV IURP HQJDJLQJ LWVHOI LQ DFWLRQV RI FRQIOLFW RI LQWHUHVWV ZLWK WKH &RPSDQ\ VR DV WR EROVWHU WKH FRQILGHQFH RI WKH VKDUHKROGHUV DQG LQYHVWRUV 6WUXFWXUH DQG FRPSRVLWLRQ 7KH %RDUG FRQVLVWV RI 'LUHFWRUV ,QGHSHQGHQW 'LUHFWRUV 6XE FRPPLWWHHV WKH 3UHVLGHQW &(2 DQG WKH &RPSDQ\ 6HFUHWDU\ 7KH VWUXFWXUH LV EDODQFHG DQG DSSURSULDWH ZLWK GXH FKHFNV DQG EDODQFHV 'LUHFWRUV w $V RI 'HFHPEHU WKH %RDUG FRQVLVWHG RI GLUHFWRUV QRQ H[HFXWLYHV ZLWK EHLQJ ,QGHSHQGHQW 'LUHFWRUV DQG RQH H[HFXWLYH WKH 3UHVLGHQW &(2 $OO 'LUHFWRUV DUH H[SHUWV ZLWK GLYHUVH PDQDJHULDO H[SHULHQFH LQ WKH SHWURFKHPLFDO DQG FKHPLFDO LQGXVWU\ ZKLFK LV WKH &RPSDQ\ V FRUH EXVLQHVV DV ZHOO DV RWKHU GLVFLSOLQHV RI EHQHILW WR WKH &RPSDQ\ DQG DSSO\ VXFK H[SHUWLVH DQG H[SHULHQFH WR EHQHILW WKH &RPSDQ\ V EXVLQHVV w 7KH &KDLUPDQ DQG WKH 3UHVLGHQW &(2 DUH WZR GLVWLQFW SHUVRQV ZLWK FOHDU VHSDUDWLRQ RI UROHV 7KH &KDLUPDQ KDV SHUIRUPHG KLV GXW\ ZLWK LQGHSHQGHQFH SDUWLFXODUO\ LQ H[SUHVVLQJ KLV YLHZV RQ WKH &RPSDQ\ V SHUIRUPDQFH XQGHU WKH %RDUG V SROLF\ DQG LQ WKH EHVW LQWHUHVWV RI WKH &RPSDQ\ VKDUHKROGHUV DQG WKH FRXQWU\ w 7KH %RDUG KDV GLVFORVHG WKH 'LUHFWRUV QDPHV SURILOHV FUHGHQWLDOV H[SHULHQFH DQG VKDUHKROGLQJ WKURXJK WKH DQQXDO UHSRUW )RUP DQG WKH &RPSDQ\ V ZHEVLWH

140

Annual Report 2010 PTT Chemical Public Company Limited

,QGHSHQGHQW 'LUHFWRUV w 7KH &RPSDQ\ V ,QGHSHQGHQW 'LUHFWRUV FRQVLVWV RI GLUHFWRUV ZKLFK DFFRXQWV IRU PRUH WKDQ RQH WKLUG RI WKH %RDUG $OO ,QGHSHQGHQW 'LUHFWRUV SHUIRUPHG WKHLU GXWLHV FRQFHUQLQJ EHQHILWV RI DOO VWDNHKROGHUV ZLWK IDLUQHVV w ,Q WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH SURSRVHG WKDW WKH ,QGHSHQGHQW 'LUHFWRUV VKRXOG KROG DQ H[FOXVLYH PHHWLQJ DPRQJ WKHPVHOYHV ZKLFK HQDEOH WKHP WR H[SUHVV YLHZV DQG H[SHFWDWLRQV UHYLHZ WKHLU SHUIRUPDQFH DQG SURYLGH UHFRPPHQGDWLRQV IUHHO\ DQG FRQFUHWHO\ WR WKH H[HFXWLYHV DQG WKH %RDUG $W WKH ILUVW PHHWLQJ WKH 'LUHFWRUV H[DPLQHG WKH FRPSRVLWLRQ GHILQLWLRQV TXDOLILFDWLRQV DQG SHUIRUPDQFH RI ,QGHSHQGHQW 'LUHFWRUV XQGHU JRRG FRUSRUDWH JRYHUQDQFH FRQFOXGLQJ WKDW WKHVH ZHUH DGHTXDWH SURSHU DQG LQFOXVLYH RI WKHLU SHUIRUPDQFH ,Q DGGLWLRQ WKH\ SURYLGHG KHOSIXO UHFRPPHQGDWLRQV DQG YLHZV IRU WKH %RDUG V SHUIRUPDQFH 7KH\ HQGRUVHG WKH \HDU V PHHWLQJ SODQ DQG IDYRUHG RQH TXDUWHUO\ PHHWLQJ DKHDG RI WKH %RDUG RI 'LUHFWRUV PHHWLQJ HDFK ODVWLQJ DERXW PLQXWHV WR DQ KRXU ORQJ w 7KH %RDUG UHYLHZV WKH ,QGHSHQGHQW 'LUHFWRUV LQGHSHQGHQFH WKURXJK SDVW DQG FXUUHQW SHUIRUPDQFHV DV ZHOO DV WKHLU EXVLQHVV UHODWLRQVKLSV WR WKH &RPSDQ\ XQGHU 6(& V UHJXODWLRQV w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

141

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

142

Annual Report 2010 PTT Chemical Public Company Limited

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

143

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w $W LWV PHHWLQJ 1R RQ -XQH WKH %RDUG DSSRLQWHG 0UV :DODLSRUQ 3XVSDYHVD 9LFH 3UHVLGHQW &RUSRUDWH *RYHUQDQFH DQG 6HFUHWDULDO XQGHU WKH &RUSRUDWH $IIDLUV GHSDUWPHQW DV WKH &RPSDQ\ 6HFUHWDU\ XQGHU WKH 6HFXULWLHV DQG ([FKDQJH $FW EDVHG RQ KHU FRQVLGHUDEOH NQRZOHGJH DQG H[SHULHQFH WR SHUIRUP WKH GXW\ IRU WKH EHQHILW RI WKH &RPSDQ\ WKH %RDUG DQG VKDUHKROGHUV w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w 7KH &RPSDQ\ 6HFUHWDU\ DWWHQGV WUDLQLQJ VHPLQDUV DQG FODULILFDWLRQ DQG JLYHV RSLQLRQV RQ LVVXHV UDLVHG E\ WKH UHJXODWRU\ ERG\ WKDW RYHUVHHV OLVWHG FRPSDQLHV ZKLFK ZLO ERRVW WKH HIILFLHQF\ RI WKH IXQFWLRQV DQG WKH &RPSDQ\ V FRUSRUDWH JRYHUQDQFH 6KDUHKROGHUV FDQ FRQWDFW WKH &RPSDQ\ 6HFUHWDU\ YLD H PDLO FJ#SWWFKHPJURXS FRP

144

Annual Report 2010 PTT Chemical Public Company Limited

'LUHFWRU 1RPLQDWLRQ DQG $SSRLQWPHQW 7KH %RDUG KDV GHILQHG D IRUPDO DQG WUDQVSDUHQW UHFUXLWPHQW SURFHGXUH IRU 'LUHFWRUV ZKHUHE\ WKH 1RPLQDWLRQ &RPPLWWHH SHUIRUPHG LWV GXWLHV IRU WKH FRQILGHQFH RI VKDUHKROGHUV DQG DOO VWDNHKROGHUV LQ UHFUXLWPHQW DQG QRPLQDWLRQ SURFHVV IRU 'LUHFWRU DQG WKH 3UHVLGHQW &(2 D SURFHVV XQGHUWDNHQ ZLWK WUDQVSDUHQF\ DQG FRQIRUPDQFH WR WKH GHILQHG FULWHULD DQG SURFHGXUHV IRU WKH %RDUG V FRQVLGHUDWLRQ DQG VKDUHKROGHUV

DSSURYDO ZKLFKHYHU LV WKH FDVH 7KLV LV WR HQVXUH WKDW WKH %RDUG FRQVLVWV RI NQRZOHGJHDEOH FDSDEOH DQG H[SHULHQFHG SHUVRQV LQ GLYHUVH ILHOGV WR EHQHILW WKH &RPSDQ\ V RSHUDWLRQV 7KH %RDUG KDV PDGH LW SRVVLEOH IRU VKDUHKROGHUV WR QRPLQDWH VXLWDEOH SHUVRQV DKHDG RI WKH $*0 7HUPV RI 'LUHFWRUV w $V VWDWHG LQ &RPSDQ\ UHJXODWLRQV HDFK GLUHFWRU V WHUP LV WKUHH \HDUV LQ OLQH ZLWK WKH 3XEOLF &RPSDQ\ /LPLWHG $FW 7KH %RDUG DOORZV WKH $XGLW &RPPLWWHH WR VHUYH QR PRUH WKDQ WZR FRQVHFXWLYH WHUPV XQOHVV WKH %RDUG VHHV RWKHUZLVH $V IRU RWKHU 'LUHFWRUV DQG PHPEHUV RI WKH 6XE FRPPLWWHHV WKH %RDUG ZLOO HQVXUH WKDW &RPSDQ\ SUDFWLFHV DOLJQ ZLWK WKH JRRG FRUSRUDWH JRYHUQDQFH SULQFLSOHV w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w 7KH %RDUG KDV GHILQHG WKH SROLF\ DQG SURFHGXUHV IRU VHUYLQJ DV 'LUHFWRUV LQ 377 &KHP *URXS IRU H[HFXWLYHV 7RS 7HDP IURP WKH UDQN RI 9LFH 3UHVLGHQW XSZDUG 7KH 3UHVLGHQW &(2 KDV WKH GHOHJDWHG DXWKRULW\ WR FRQVLGHU WKH VXLWDELOLW\ RI VXFK WHUPV DQG WKH QXPEHU RI FRPSDQLHV HDFK FDQ VHUYH VR DV WR DOLJQ WKH EXVLQHVV GLUHFWLRQ DQG VWUDWHJ\ ZLWK WKH SROLF\ RI 377 &KHP *URXS

145

6HJUHJDWLRQ RI UROHV 7KH %RDUG KDV GHYLVHG D ZULWWHQ FRGH RI WKH %RDUG DQG WKH H[HFXWLYHV DXWKRULW\ DQG UHVSRQVLELOLWLHV IRU WKH EHQHILW RI VXSHUYLVLRQ H[DPLQDWLRQ DQG DVVHVVPHQW DV IROORZV w 7KH %RDUG KDV FOHDUO\ VHSDUDWHG WKH DXWKRULW\ RI WKH %RDUG DQG WKH H[HFXWLYHV WKURXJK WKH %RDUG V UHVROXWLRQV ZKLFK DUH WUDQVODWHG LQWR JXLGHOLQHV RQ WKH ILQDQFLDO DXWKRULW\ DQG WKH DXWKRULW\ WR GHFLGH RQ PDWWHUV RI WKH 3UHVLGHQW &(2 7KH 3UHVLGHQW LV HPSRZHUHG RI VXFK PDWWHUV RQ D ZULWWHQ HQGRUVHPHQW YDOLG IRU WKUHH \HDUV DW D WLPH w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w 7KH %RDUG V OHDGHUVKLS LV LOOXVWUDWHG WKURXJK WKH RXWOLQLQJ DQG UHYLHZLQJ RI WKH YLVLRQ DQG EXVLQHVV PLVVLRQ DW WKH PHHWLQJV EDVHG RQ WKH DQDO\VLV RI LQWHUQDO DQG H[WHUQDO IDFWRUV ZKLFK ZLOO KDYH DQ LQIOXHQFH RQ WKH RSHUDWLRQV VWUHQJWKV ZHDNQHVVHV SRWHQWLDO DQG WKH FLUFXPVWDQFHV RI WKH RUJDQL]DWLRQ DV ZHOO DV H[SHFWDWLRQV RI VWDNHKROGHUV w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w ,QGHSHQGHQW 'LUHFWRUV DUH DFWLQJ LQGHSHQGHQWO\ LQ JLYLQJ WKHLU RSLQLRQV DW WKH PHHWLQJV DQG HQVXULQJ QR FRQIOLFW RI LQWHUHVW 7KH\ DUH DVVLJQHG WR WDNH SDUW LQ WKH 6XE FRPPLWWHHV WR PDNH VXUH WKDW WKH PDWWHUV SHQGLQJ WKH %RDUG V FRQVLGHUDWLRQ DUH SURSHUO\ DQG HIILFLHQWO\ VFUHHQHG LQ OLQH ZLWK FRUSRUDWH JRYHUQDQFH SUDFWLFHV w 7KH %RDUG KDV LQVWLWXWHG PHHWLQJV DPRQJ QRQ H[HFXWLYH 'LUHFWRUV DV QHHGHG WR GLVFXVV PDQDJHULDO LVVXHV RI LQWHUHVW DQG KDV DOVR LQVWLWXWHG H[FOXVLYH PHHWLQJV DPRQJ ,QGHSHQGHQW 'LUHFWRUV ZKLFK HQDEOH VXFK GLUHFWRUV WR H[SUHVV YLHZV UHYLHZ WKHLU SHUIRUPDQFH DQG IUHHO\ SURYLGH IUHH UHFRPPHQGDWLRQV WR WKH PDQDJHPHQW

146

Annual Report 2010 PTT Chemical Public Company Limited

&RUSRUDWH *RYHUQDQFH SROLF\ DQG FRGH RI FRQGXFW w 7KH %RDUG LV FRQYLQFHG WKDW FRUSRUDWH JRYHUQDQFH SURYLGHV WKH H[HFXWLYHV ZLWK IUDPHZRUN DQG EXVLQHVV JXLGHOLQHV WRZDUG VXVWDLQDEOH JURZWK DQG FRQILGHQFH RI VWDNHKROGHUV 7KH FRUSRUDWH JRYHUQDQFH SROLF\ LV VHW DQG WKH %RDUG HQVXUHV FRPPXQLFDWLRQ SXEOLFL]LQJ DQG PRQLWRULQJ RI WKH SROLF\ w 7KH %RDUG FRPSLOHV DVVRUWHG JXLGHOLQHV DQG GHILQHG DFFHSWDEOH EHKDYLRU WKDW VHUYHV DV VWDQGDUG XQGHU D IUDPHZRUN RI HWKLFV YLUWXH DQG LQWHJULW\ $OO HPSOR\HHV YDOXH WKHVH DQG UHVSRQVLEO\ REVHUYH WKHP w 7KH %RDUG SUHSDUHV WKH &RUSRUDWH *RYHUQDQFH +DQGERRN %XVLQHVV &RGH RI &RQGXFW DQG HQIRUFH WKHP WKURXJKRXW 377 &KHP *URXS $ FRS\ RI WKH SXEOLFDWLRQ KDV EHHQ KDQGHG WR DOO 'LUHFWRUV H[HFXWLYHV DQG HPSOR\HHV WR PDVWHU VLJQ WKHLU QDPHV LQ DFNQRZOHGJPHQW DQG REVHUYH WKXV LO XVWUDWLQJ WKH SDUWLFLSDWLRQ RI HYHU\RQH DFURVV WKH RUJDQL]DWLRQ w 377 &KHPLFDO GHOLYHUV WKH %XVLQHVV &RGH RI &RQGXFW RI 377 &KHP *URXS WR VWDNHKROGHUV LQFOXGLQJ EXVLQHVV SDUWQHUV FXVWRPHUV OHQGHUV MRLQW YHQWXUH SDUWQHUV DQG UHOHYDQW DJHQFLHV DQG SXEOLFL]HV WKHP IRU WKH LQWHUHVWHG SXEOLF WKURXJK WKH &RPSDQ\ V ZHEVLWH DLPLQJ WR HQFRXUDJH DQ DGRSWLRQ RI WKH VDPH SULQFLSOHV DPRQJ WKRVH EXVLQHVV SDUWQHUV w 7KH &RUSRUDWH *RYHUQDQFH &RPPLWWHH UHYLVHV WKH DERYH PHQWLRQHG KDQGERRN DQG &RGH RI &RQGXFW HYHU\ \HDU )RU WKLV \HDU FRQVLGHULQJ WKHP VWLOO YDOLG FRPSOHWH UHDOLVWLF XQGHU FXUUHQW EXVLQHVV FLUFXPVWDQFHV DQG LQWHUQDWLRQDO VWDQGDUGV DQG FRQIRUPLQJ WR ODZV FULWHULD DQG UHTXLUHPHQWV WKH &RPPLWWHH DSSURYH LWV FRQWLQXHG HQIRUFHPHQW &RPPXQLFDWLRQV DQG GLVVHPLQDWLRQ RI &RUSRUDWH *RYHUQDQFH SROLF\ w 7KH %RDUG PDGH LW FRPSXOVRU\ IRU WKH H[WHUQDO DQG LQWHUQDO GLVVHPLQDWLRQ RI WKH FRUSRUDWH JRYHUQDQFH 3ROLF\ DQG %XVLQHVV &RGH RI &RQGXFW IRU UHJXODU FRPPXQLFDWLRQ ZLWK VWDNHKROGHUV WKURXJK YDULRXV PHGLD DQG FKDQQHOV 7KHVH DUH DOVR KDQGHG WR DOO QHZ 'LUHFWRUV DQG HPSOR\HHV GXULQJ RULHQWDWLRQ VHVVLRQV w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w 7KH %RDUG KDV PRQLWRUHG FRQIRUPDQFH WR WKH FRUSRUDWH JRYHUQDQFH SROLF\ KDYLQJ WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH GHYLVH WKH JXLGHOLQHV JLYH UHFRPPHQGDWLRQV DQG RYHUVHH WKH FRUSRUDWH JRYHUQDQFH SUDFWLFHV 7KH $XGLW &RPPLWWHH LV DOVR WDVNHG WR UHYLHZ DQG HYDOXDWH LQWHUQDO FRQWUROV WR HQVXUH FRQIRUPDQFH WR UHOHYDQW UXOHV w 7KH &RUSRUDWH *RYHUQDQFH &RPPLWWHH UHJXODUO\ UHYLHZV DQG DVVHVVHV FRPSOLDQFH WKURXJK LWV TXDUWHUO\ PHHWLQJV ZKHUH WKH &RPSDQ\ V FRPSOLDQFH LV FRPSDUHG WR WKH LQWHUQDWLRQDO VWDQGDUG JXLGHOLQHV IRU OLVWHG FRPSDQLHV &RPSOLDQFH UHSRUWV DUH VXEPLWWHG WR WKH %RDUG DQG SUHVHQWHG WR VKDUHKROGHUV LQ WKH DQQXDO UHSRUW

147

w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w 7KH %RDUG KDV GHYLVHG D SROLF\ RQ FRQIOLFW RI LQWHUHVW DV SDUW RI WKH &RUSRUDWH *RYHUQDQFH %XVLQHVV &RGH RI &RQGXFW +DQGERRN ,W KDV DOVR IROORZHG WKH UHFRPPHQGDWLRQV RI 6(& RQ %RDUG DSSURYDOV IRU FRPPHUFLDO WUDQVDFWLRQV XQGHU DJUHHPHQWV EHWZHHQ 377 &KHPLFDO RU LWV VXEVLGLDULHV DQG GLUHFWRUV WKH H[HFXWLYHV RU UHODWHG SDUWLHV WR FRPSO\ ZLWK WKH DPHQGHG 6HFXULWLHV DQG ([FKDQJH $FW w ,Q DSSURYLQJ DQ\ WUDQVDFWLRQ WKH %RDUG KDV HQVXUHG WKH FRPSOLDQFH ZLWK WKH FULWHULD DQG JXLGHOLQHV ZLWK SUXGHQFH VHQVLELOLW\ DQG LQGHSHQGHQFH 7KH WUDQVSDUHQW SURFHVV FRPSOHWHO\ DQG DFFXUDWHO\ HPSKDVL]HV WKH &RPSDQ\ V RYHUDOO EHQHILW w ,Q DSSURYLQJ FRQQHFWHG WUDQVDFWLRQV WKH %RDUG GHPDQGV WKH GLVFORVXUH RI WKH LQWHUHVWV RI 'LUHFWRUV WKH H[HFXWLYHV DQG UHODWHG SDUWLHV WKH WUDQVDFWLRQ YDOXH ,QGHSHQGHQW 'LUHFWRUV RSLQLRQV DQG RWKHUV DV QHFHVVDU\ IRU WKH %RDUG DQG VKDUHKROGHUV WR SURSHUO\ PDNH D GHFLVLRQ IRU WKH &RPSDQ\ V RYHUDOO EHQHILW w 7KH %RDUG GHYLVHV D JXLGHOLQH ZKLFK EDUV UHODWHG 'LUHFWRUV RU H[HFXWLYHV RU HPSOR\HHV IURP FRQVLGHULQJ WKH WUDQVDFWLRQV RI VXFK SHUVRQV $Q\ LQYROYHG LQGLYLGXDO PXVW UHIUDLQ IURP DWWHQGLQJ WKH PHHWLQJ RU GR VR RQO\ WR FODULI\ VRPH IDFWV 7KH\ KDYH QR ULJKW WR FRQVLGHU RU YRWH RQ WKH LVVXH w 7KH %RDUG DV DGYLVHG E\ WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH UHTXLUHV 'LUHFWRUV H[HFXWLYHV DQG HPSOR\HHV WR FRPSOHWH WKH GLVFORVXUH SURFHVV DW WKH HQG RI HDFK \HDU RI WUDQVDFWLRQV ZLWK SRVVLEOH FRQIOLFWV RI LQWHUHVW RU HYHQ ZKHQ QR VXFK WUDQVDFWLRQV WDNH SODFH VWDUWLQJ IURP \HDU HQG w $ &RQIOLFW RI ,QWHUHVW &RPPLWWHH KDV EHHQ IRUPHG WR H[DPLQH UHSRUWV RQ FRQIOLFWV RI LQWHUHVW FKDUJHG ZLWK GHILQLQJ WKH SURFHVV SURFHGXUHV DQG H[DPLQDWLRQ RI VXFK UHSRUWV DV ZHOO DV SURYLVLRQ RI UHFRPPHQGDWLRQV YLHZV DQG DSSURDFKHV IRU UHVROXWLRQ RU DFNQRZOHGJPHQW RI ILQGLQJV 7KH WDVN IRUFH UHSRUWV WR UHOHYDQW DJHQFLHV RU WKH 3UHVLGHQW &(2 DQG UHSRUWV WR WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH HYHU\ \HDU w ,Q 377 &KHPLFDO GHYHORSHG WKH IRUPDW RI UHSRUWV RI FRQIOLFWV RI LQWHUHVW IRU DOO HPSOR\HHV LQWR RQOLQH UHSRUWLQJ WKURXJK WKH LQWUDQHW RI WKH *URXS IRU FRQYHQLHQFH DQG VSHHG LQ DGGLWLRQ WR FXWWLQJ GRZQ RQ WKH XVH RI SDSHU w ,QWHUQDO $XGLW LV LQ FKDUJH RI KDQGOLQJ FRPSODLQWV LQ UHJDUG WR WKH %XVLQHVV &RGH RI &RQGXFW IURP ZKLVWOH EORZHUV 6XFK FRPSODLQWV FDQ EH ILOHG ZKHQ DQ LPSURSHU DFWLRQ YLRODWHV WKH &RGH RI &RQGXFW DQG WKHUH DUH PHDVXUHV WR SURWHFW WKH ZKLVWOH EORZHUV WKURXJKRXW DQG DIWHU HDFK LQYHVWLJDWLRQ

148

Annual Report 2010 PTT Chemical Public Company Limited

,QWHUQDO &RQWUROV DQG ,QWHUQDO $XGLW w 7KH %RDUG YDOXHV LQWHUQDO FRQWUROV 7KH $XGLW &RPPLWWHH LV DVVLJQHG WR UHYLHZ WKH LQWHUQDO FRQWURO V\VWHP IRU VXIILFLHQF\ DQG DSSURSULDWHQHVV WR EXVLQHVV FRQGLWLRQV DV ZHOO DV RSHUDWLQJ HIIHFWLYHQHVV DQG UHSRUW WR WKH %RDUG DQG VKDUHKROGHUV w 7KH %RDUG DOVR VHW XS ,QWHUQDO $XGLW DV D VHSDUDWH XQLW UHVSRQVLEOH IRU WKH DVVHVVPHQW RI WKH DGHTXDF\ DQG HIIHFWLYHQHVV RI LQWHUQDO FRQWUROV RQ WKH RSHUDWLRQV DQG DFWLYLWLHV LQ OLQH ZLWK WKH DQQXDO DXGLW %\ UHJXODUO\ UHSRUW WR WKH $XGLW &RPPLWWHH WR SURPRWH WKH HIIHFWLYHQHVV RI WKH FRQWURO HQYLURQPHQW ULVN DVVHVVPHQW DQG FRQWURO DFWLYLWLHV XQGHU HWKLFDO DQG VWDQGDUG LQWHUQDO DXGLW VWDQGDUGV IRU WKH LQGHSHQGHQFH DQG TXDOLW\ RI LQWHUQDO FRQWUROV w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w %\ DQDO\]LQJ HPSOR\HHV HGXFDWLRQDO EDFNJURXQG DQG UHTXLUHG VNLO V WKH &RPSDQ\ DVVHVVHV WKHLU FRPSHWHQFLHV WR HQVXUH WKDW WKH\ DUH NQRZOHGJHDEOH VNLOOIXO DQG FRPSHWHQW WR SHUIRUP WKHLU DVVLJQPHQWV w %\ GHILQLQJ WKH VWUXFWXUH RI WKH %RDUG DQG WKH $XGLW &RPPLWWHH WKDW JLYHV WKHP LQGHSHQGHQFH RI WKH PDQDJHPHQW 377 &KHPLFDO HQVXUHV WKDW WKH %RDUG VXSHUYLVHV DQG PRQLWRUV WKH PDQDJHPHQW V H[HFXWLRQ DJDLQVW WKH GHILQHG SROLF\ DQG JRDOV WKDW ILQDQFLDO UHSRUWV DUH FUHGLEOH WKH LQWHUQDO DXGLW DQG LQWHUQDO FRQWURO V\VWHPV DUH DGHTXDWH DQG HIIHFWLYH DQG WKH GLVFORVXUH RI FRQQHFWHG WUDQVDFWLRQV DUH SURSHUO\ GRQH

149

w ([HFXWLYHV SRVVHVV D ZRUN SKLORVRSK\ DQG VW\OH FKDUDFWHUL]HG E\ JRRG DWWLWXGHV VXSSRUWLQJ SHUIRUPDQFH LQ DFFRXQWLQJ LQIRUPDWLRQ PDQDJHPHQW DQG KXPDQ UHVRXUFH PDQDJHPHQW V\VWHPV PRQLWRULQJ DQG DVVHVVPHQW LQWHUQDO DQG H[WHUQDO DXGLWV DV ZHOO DV WKH LPSOHPHQWDWLRQ RI WKH 5LVN 0DQDJHPHQW IRU NH\ EXVLQHVV RSHUDWLRQ w ,Q SODFH LV D FOHDU DQG VXLWDEOH RUJDQL]DWLRQ VWUXFWXUH ZLWK OLQHV RI FRPPDQG FRPSOHWH ZLWK ZULWWHQ GHOHJDWLRQ RI UHVSRQVLELOLW\ DQG FRQVLVWHQW PRGLILFDWLRQV IRU SUHYDLOLQJ EXVLQHVV FLUFXPVWDQFHV w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w 5LVNV WR &RPSDQ\ SHUIRUPDQFH IRU w 5LVNV WR DFKLHYHPHQW RI &RPSDQ\ REMHFWLYHV XQGHU WKH %DODQFHG 6FRUHFDUG RI w 5LVNV WR &RPSDQ\ JURZWK XQGHU LWV ORQJ WHUP LQYHVWPHQW SODQ 3URMHFW 5LVNV

&RQWURO $FWLYLWLHV 2YHUDOO WKH &RPSDQ\ FRPPDQGV VXLWDEOH DGHTXDWH DQG HIIHFWLYH FRQWURO DFWLYLWLHV $ SROLF\ DQG SURFHGXUHV KDYH EHHQ GHILQHG LQ ZULWLQJ DORQJ ZLWK ZRUN LQVWUXFWLRQV WR HQVXUH LPSOHPHQWDWLRQ VXFFHVV &RQWURO DFWLYLWLHV LQGLFDWH ZRUN UHODWHG ULVNV WR PDNH HPSOR\HHV PRUH FDUHIXO DQG WKXV DFKLHYH VXFFHVV IRU LQVWDQFH w 0DQDJHPHQW &RQWUROV 7KH REMHFWLYHV DUH GHILQHG LQ ZULWLQJ WR LQIRUP DOO HPSOR\HHV DERXW EXVLQHVV DFKHLYHPHQW REMHFWLYHV FRPSOHWH ZLWK PHFKDQLVPV IRU DFWLRQ SODQQLQJ DV ZHOO DV DOORFDWLRQ RI UHVRXUFHV EXGJHW DQG PDQSRZHU 'HILQHG ZRUN SURFHVVHV DQG PRQLWRULQJ HIIHFWLYHQHVV WRJHWKHU ZLWK FRQIRUPDQFH WR ODZV UHJXODWLRQV DQG VWDQGDUGV w ,QWHUQDO &RQWUROV IRU $FFRXQWLQJ DQG )LQDQFH ,QVWLWXWHG LV D SURFHVV IRU H[DPLQLQJ WKH DFFXUDF\ DQG FRPSOHWHQHVV RI DFFRXQW HQWULHV DQG SUHSDUDWLRQ RI ILQDQFLDO UHSRUWV VWHZDUGVKLS RI SURSHUWLHV DQG H[DPLQDWLRQ RI FDVK DGYDQFHPHQW LWHPV DQG FRQQHFWHG WUDQVDFWLRQV 7KHUH LV SURSHU VHJUHJDWLRQ RI GXWLHV IRU DFFRXQWLQJ DQG ILQDQFH

150

Annual Report 2010 PTT Chemical Public Company Limited

w ,QWHUQDO &RQWUROV IRU 3URFXUHPHQW DQG +LULQJ ,QVWLWXWHG DUH UXOHV DQG UHTXLUHPHQWV ZKLFK VSHOO RXW GXWLHV DQG UHVSRQVLELOLWLHV XQGHU WKH SURFXUHPHQW DQG KLULQJ SURFHVV w ,QWHUQDO &RQWUROV IRU +XPDQ 5HVRXUFH 0DQDJHPHQW $ UHFUXLWPHQW SURFHVV LV LQ SODFH IRU SHUVRQQHO ZLWK GHVLUDEOH FRPSHWHQFLHV DV LV D FRPSHQVDWLRQ V\VWHP FKDUDFWHUL]HG E\ VXLWDELOLW\ DQG IDLUQHVV 'XWLHV DQG UHVSRQVLELOLWLHV DUH GHILQHG DORQJ ZLWK D V\VWHP IRU SURYLGLQJ LQIRUPDWLRQ DQG DQ DGHTXDWHO\ HIILFLHQW FRPPXQLFDWLRQ V\VWHP w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

151

5LVN 0DQDJHPHQW w 7KH %RDUG KDV GHILQHG D FRPSUHKHQVLYH ULVN PDQDJHPHQW SROLF\ SURFHVVHV DQG JXLGHOLQHV WKURXJKRXW WKH HQWLUH RUJDQL]DWLRQ LQ WKH &RUSRUDWH *RYHUQDQFH DQG %XVLQHVV &RGH RI &RQGXFW +DQGERRN 7KH $XGLW &RPPLWWHH LV DVVLJQHG WR UHYLHZ WKH V\VWHP WR HQVXUH HIIHFWLYH ULVN PDQDJHPHQW DQG DFNQRZOHGJH ULVN PDQDJHPHQW UHSRUWV EHIRUH SUHVHQWLQJ WR WKH %RDUG DW LWV TXDUWHUO\ PHHWLQJV RU ZKHQ LUUHJXODULWLHV HPHUJH w 7KH %RDUG KDV GHYLVHG D ULVN PDQDJHPHQW PRQLWRULQJ DQG UHSRUWLQJ V\VWHP UHTXLULQJ UHSRUWV RQ ULVNV WR 377 &KHP *URXS V ILQDQFLDO SHUIRUPDQFH JRDO DFKLHYHPHQW DV VWDWHG RQ WKH %DODQFHG 6FRUHFDUG DQG WKH &RPSDQ\ V ORQJ WHUP LQYHVWPHQW SODQ RU ZKHQ DQ\ LQFLGHQW WKDW PD\ FDXVH VLJQLILFDQW ULVNV DULVH w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w ,Q WKH %RDUG KHOG QLQH PHHWLQJV 7KH QXPEHU RI %RDUG PHHWLQJV LV FRPSDWLEOH ZLWK WKH GLUHFWRUV SHUIRUPDQFH DQG WKH QDWXUH RI &RPSDQ\ EXVLQHVV 'LUHFWRUV LQGLYLGXDO DWWHQGDQFH UHFRUGV DUH GLVFORVHG DV UHTXLUHG E\ 6(& (DFK PHHWLQJ WRRN KRXUV RQ DYHUDJH GHSHQGLQJ RQ WKH DJHQGD w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w 7KH SUHSDUHG PLQXWHV RI HDFK PHHWLQJ ZLWK FRPSOHWH VLJQLILFDQW GHWDLOV DUH WR EH SUHSDUHG E\ WKH &RPSDQ\ 6HFUHWDU\ DQG DSSURYHG DW VXEVHTXHQW %RDUG PHHWLQJV DQG VLJQHG E\ WKH &KDLUPDQ RI WKH PHHWLQJ 6WRUDJH RI WKH PLQXWHV PXVW EH LQ ERWK KDUG FRSLHV DQG WKH HOHFWURQLF IRUP IRU FRQYHQLHQW VHDUFK $ PHFKDQLVP LV LQ SODFH WR SUHYHQW DOWHUDWLRQ ZLWKRXW WKH NQRZOHGJH RI WKH %RDUG

152

Annual Report 2010 PTT Chemical Public Company Limited

w 7KH H[HFXWLYHV GHOLYHUV VLJQLILFDQW GRFXPHQWV LQIRUPDWLRQ WR WKH %RDUG UHJXODUO\ DQG HQFRXUDJHV 1RQ H[HFXWLYH 'LUHFWRUV WR KROG WKHLU RZQ PHHWLQJV LQ WKH DEVHQFH RI WKH PDQDJHPHQW WR GLVFXVV FRQFHUQV DQG SUREOHPV RI LQWHUHVW 7R WKLV HQG WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH KDV SURYLGHG D SUDFWLFDO DSSURDFK LQFOXGLQJ PHHWLQJ EHIRUH WKH IXOO %RDUG PHHWLQJ WR FRPH XS ZLWK UHFRPPHQGDWLRQV RU GHOLEHUDWH RWKHU PDWWHUV MRLQWO\ w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w 7KH %RDUG LQVWLWXWHV DQQXDO DVVHVVPHQW WR DOORZ LW WR UHYLHZ LWV RZQ SHUIRUPDQFH SUREOHPV DQG REVWDFOHV GXULQJ WKH SDVW \HDU w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

153

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w $VVHVVPHQW RI WKH $XGLW &RPPLWWHH FRYHUHG WKH HLJKW DUHDV XQGHU WKH MXULVGLFWLRQ QDPHO\ LWV FKDUWHU FRPSRVLWLRQ PHHWLQJV WUDLQLQJ DQG UHVRXUFHV UHVSRQVLELOLW\ UHODWLRQVKLS ZLWK WKH KHDG RI LQWHUQDO DXGLW H[WHUQDO DXGLWRU DQG WKH H[HFXWLYHV UHSRUWLQJ WR WKH %RDUG DQG VKDUHKROGHUV DQG TXDOLW\ DVVXUDQFH 7KUHH JUDGHV ZHUH LQYROYHG QRW SUDFWLFHG SDUWO\ SUDFWLFHG DQG IXOO\ SUDFWLFHG ,Q VXPPDU\ PRVW RI WKH $XGLW &RPPLWWHH PHPEHUV IXOO\ SUDFWLFHG WKHLU SHUIRUPDQFH w ,QGLYLGXDO VHOI DVVHVVPHQW FRYHUHG ILYH DUHDV QDPHO\ EXVLQHVV NQRZOHGJH VSHFLDOW\ LQGHSHQGHQFH DQG IDLUQHVV DSSUHFLDWLRQ RI GXWLHV DQG UHVSRQVLELOLW\ DQG GHGLFDWLRQ WR RIILFH DQG PHHWLQJV 7KUHH JUDGHV ZHUH LQYROYHG OLWWOH PRGHUDWH DQG FRQVLGHUDEOH ,Q VXPPDU\ PRVW DUHDV ZHUH UDWHG DV FRQVLGHUDEOH DQG QRQH UDWHG DV OLWWOH 'LUHFWRUV &RPSHQVDWLRQ w 7KH 5HPXQHUDWLRQ &RPPLWWHH IRUPXODWHV FOHDU SROLFLHV DQG FULWHULD IRU IDLU DQG UHDVRQDEOH 'LUHFWRUV

FRPSHQVDWLRQ DQG WDEOHV WKHP EHIRUH WKH %RDUG ZKLFK WKHQ VHHNV DSSURYDO IURP WKH VKDUHKROGHUV 7KH GHFLVLRQ SURFHVV IRU VXFK FRPSHQVDWLRQ LV WUDQVSDUHQW DQG WKH FRPSHQVDWLRQ DPRXQWV DUH DSSURYHG E\ WKH VKDUHKROGHUV w 7KH FRPSHQVDWLRQ VWUXFWXUHV FRPSRQHQWV DUH IDLU VXLW LQGLYLGXDO 'LUHFWRUV UHVSRQVLELOLWLHV UHIOHFW WKH &RPSDQ\ V SHUIRUPDQFH DQG DUH FRPSDUDEOH WR LQGXVWU\ SHHUV (DFK 'LUHFWRU WKDW DOVR VHUYHV DV PHPEHUV RI WKH 6XE FRPPLWWHHV PHPEHUV GXO\ UHFHLYHV DGGLWLRQDO FRPSHQVDWLRQ w 7KH %RDUG GLVFORVHV WKH W\SHV DQG VXPV RI FRPSHQVDWLRQ JLYHQ WR HDFK 'LUHFWRU DV ZHOO DV FRPSHQVDWLRQ IRU 'LUHFWRUV VHUYLQJ DV 'LUHFWRUV RI 377 &KHPLFDO V VXEVLGLDULHV DV UHTXLUHG E\ SRVLWLRQ DQG UHVSRQVLELOLW\ LQ OLQH ZLWK VWDWHG SROLFLHV w ,Q WKH FRPPLWWHH LQLWLDWHG WKH LGHD RI LQFOXGLQJ WKH %RDUG V DQQXDO SHUIRUPDQFH DVVHVVPHQW RXWFRPHV ZKLFK UHIOHFW LWV UHVSRQVLELOLWLHV IRU PHHWLQJ DWWHQGDQFH DQG SDUWLFLSDWLRQ LQ WKH GHILQLQJ RI FRPSDQ\ YLVLRQ VWUDWHJLHV DV ZHOO DV EXVLQHVV SODQV DV D FRPSRQHQW RI WKH %RDUG V ERQXV FRQVLGHUDWLRQ IRU WKH IROORZLQJ \HDU

154

Annual Report 2010 PTT Chemical Public Company Limited

&RPSHQVDWLRQ WR WKH 3UHVLGHQW &(2 w 7KH %RDUG UHTXLUHV WKH DQQXDO DVVHVVPHQW RQ WKH 3UHVLGHQW &(2 V SHUIRUPDQFH EDVHG RQ WKH &RPSDQ\ V ILQDQFLDO SHUIRUPDQFH ZKLFK UHIOHFWV WKH 3UHVLGHQW &(2 V PDQDJHPHQW SRWHQWLDO DQG DELOLW\ LQ DFKLHYLQJ PDQDJHPHQW JRDOV LQ WKH SDVW \HDU DQG PDQDJLQJ WKH RUJDQL]DWLRQ V SRWHQWLDO ,QFOXGLQJ 3UHVLGHQW &(2 V SHUIRUPDQFH DJDLQVW WKH %RDUG HQGRUVHG %DODQFHG 6FRUHFDUG WRJHWKHU ZLWK RWKHU DVSHFWV WKH VXFFHVV RI %RDUG DVVLJQHG WDVNV VRFLDO UHVSRQVLELOLW\ DQG QHWZRUNLQJ DELOLW\ w 7KH 5HPXQHUDWLRQ &RPPLWWHH GHFLGHV WKH DVVHVVPHQW FULWHULD IRU WKH 3UHVLGHQW &(2 IRU WKH %RDUG V DSSURYDO w 7KH 5HPXQHUDWLRQ &RPPLWWHH DSSUDLVHV WKH SHUIRUPDQFH RI WKH 3UHVLGHQW &(2 DQG GHFLGH RQ KLV FRPSHQVDWLRQ LQ OLQH ZLWK WKH SUHOLPLQDU\ DVVHVVPHQW ILQGLQJV ZKLFK LV WR EH WDEOHG IRU WKH %RDUG V FRQVLGHUDWLRQ 7KH &KDLUPDQ LV WR FRPPXQLFDWH WKH %RDUG V GHFLVLRQ WR WKH 3UHVLGHQW &(2 w ,Q WKH &RPPLWWHH ZLO UHTXLUH PHHWLQJV ZLWK WKH 3UHVLGHQW &(2 IRU SHULRGLF SHUIRUPDQFH DVVHVVPHQW 'HYHORSPHQW RI 'LUHFWRUV DQG WKH H[HFXWLYHV 7KH %RDUG V SROLF\ DQG PHDQV RI WUDLQLQJ IRU 'LUHFWRUV DUH LQ SODFH IRU ERWK QHZ DQG FXUUHQW RQHV DV ZHOO DV VHQLRU H[HFXWLYHV DSSRLQWHG WR VHUYH DV 'LUHFWRUV RI 377 &KHP *URXS ,W DOVR UHJXODUO\ GLVVHPLQDWHV WKH UHJXODWLRQV DQG SUDFWLFDO JXLGHOLQHV RI 6(& DQG 6(7 WR DOO RI WKHP E\ WKH IROORZLQJ PHWKRGV 1HZ 'LUHFWRUV

377 &KHPLFDO KDV LQVWLWXWHG DQ RULHQWDWLRQ IRU DOO LQFRPLQJ 'LUHFWRUV ZKHUH LQIRUPDWLRQ NQRZOHGJH LV SURYLGHG RQ WKH UROHV RI 'LUHFWRUV DORQJ ZLWK RWKHU KHOSIXO GRFXPHQWV IRU WKH PDVWHULQJ RI 377 &KHP *URXS EXVLQHVV 9LVLWV WR WKH &RPSDQ\ V DQG UHODWHG FRPSDQLHV SODQWV DQG PHHWLQJV ZLWK WKH H[HFXWLYHV WHDPV DUH DOVR DUUDQJHG 1HZ 'LUHFWRUV DUH DOVR HQFRXUDJHG WR XQGHUJR ,2' GLUHFWRUV WUDLQLQJ &XUUHQW 'LUHFWRUV &RQWLQXLQJ HGXFDWLRQ LV SURYLGHG WR WKHVH 'LUHFWRUV WKURXJK VSRQVRUVKLS RI UHOHYDQW WUDLQLQJ FRXUVHV 'LUHFWRUV DUH HQFRXUDJHG WR WDNH FRXUVHV RQ WKH 'LUHFWRU V UROHV ,Q WKH &RPSDQ\ V 'LUHFWRUV XQGHUZHQW ,2' WUDLQLQJ LQ WKHLU RUJDQL]HG FRXUVHV ZLWK RWKHUV WR GR WKH VDPH LQ 0DQDJHPHQW ([HFXWLYHV 7KHVH H[HFXWLYHV DUH FRQWLQXDOO\ WUDLQHG LQ UHOHYDQW ODZV DQG UHJXODWLRQV WKDW DUH KHOSIXO WR WKHLU SHUIRUPDQFH LQ WKH PDQDJHPHQW UROH 7KH 'LUHFWRUV RI 377 &KHP *URXS DUH DOVR HQFRXUDJHG WR DWWHQG 'LUHFWRUV FRXUVHV DW ,2' 5HOHYDQW SDUWLHV LQ 7KH &RPSDQ\ 6HFUHWDU\ WKH VHFUHWDU\ WR WKH $XGLW &RPPLWWHH RIILFHUV HQJDJHG FRUSRUDWH JRYHUQDQFH LQ LQYHVWRU UHODWLRQV DQG WKRVH GRLQJ UHOHYDQW MREV UHJXODUO\ DWWHQG DVVRUWHG WUDLQLQJ FRXUVHV DQG VLW LQ RQ VHPLQDUV RQ UHOHYDQW DQG FXUUHQW WRSLFV DQG WRSLFV WKDW DUH KHOSIXO WR WKHLU SHUIRUPDQFH RUJDQL]HG E\ 6(& 6(7 /LVWHG &RPSDQLHV $VVRFLDWLRQ ,2' DQG RWKHU H[WHUQDO UHODWHG DJHQFLHV

155

,Q WKH %RDUG H[HFXWLYHV DQG UHOHYDQW HPSOR\HHV FRQWLQXDOO\ XQGHUZHQW WUDLQLQJ DQG VHPLQDUV ERWK LQWHUQDOO\ DQG H[WHUQDOO\ RUJDQL]HG WR HQKDQFH WKHLU H[SHUWLVH IRU ZRUN DV VXPPDUL]HG EHORZ &RXUVH ,QVWLWXWLRQ 'LUHFWRU $FFUHGLWDWLRQ 3URJUDP &ODVV 7KDL ,QVWLWXWH RI 'LUHFWRUV $VVRFLDWLRQ ,2'

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

156

Annual Report 2010 PTT Chemical Public Company Limited

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w 7R RYHUVHH VKDUHKROGHUV ULJKWV DQG HTXDOLW\ E\ HQVXULQJ WKH RSSRUWXQLWLHV IRU WKH VKDUHKROGHUV WR SURSRVH PHHWLQJ DJHQGD DQG QRPLQDWH VXLWDEOH FDQGLGDWH DV 'LUHFWRUV WKUHH PRQWKV LQ DGYDQFH EHIRUH WKH $QQXDO *HQHUDO 0HHWLQJ $*0 EHWZHHQ 2FWREHU WR 'HFHPEHU w 7R FRQVLGHU DSSURSULDWH DVVHVVPHQW IRU WKH $QQXDO *HQHUDO 0HHWLQJ $*0 E\ HQVXULQJ FRPSOLDQFH WR UHTXLUHPHQW ODZ DQG RWKHU FULWHULD +HQFH $OO PHPEHU RI WKH FRPPLWWHH SDUWLFLSDWHG LQ WKLV $*0 w $IWHU WKH $*0 WKH &RPPLWWHH DFNQRZOHGJHG WKH VXPPDU\ RI PHHWLQJ HYDOXDWLRQ UHVXOW DQG VKDUHKROGHUV VDWLVIDFWLRQ UDWH ZKLFK LQFUHDVH IURP ODVW \HDU UDWH IURP VDWLVILHG WR YHU\ VDWLVILHG WKH &RPPLWWHH DOVR FRPPHQWHG WKH PDQDJHPHQW WR LQFOXGH VKDUHKROGHUV FRPPHQWV DQG UHFRPPHQGDWLRQV IRU IXWXUH LPSURYHPHQW ZKLFK OHDGV WR IXOO PDUNV DQG FDOOHG H[FHOOHQW H[HPSODU\ DW WKH $*0 TXDOLW\ DVVHVVPHQW IRU XQGHU WKH 7KDL ,QYHVWRUV $VVRFLDWLRQ IRU 377 &KHPLFDO w %HVLGHV ORRNLQJ DIWHU VKDUHKROGHUV WKH &RPPLWWHH DOVR SDLG DWWHQWLRQ WR VWDNHKROGHUV QDPHO\ FRPPXQLWLHV VRFLHW\ WKH HQYLURQPHQW FXVWRPHUV EXVLQHVV SDUWQHUV OHQGHUV WKH SXEOLF VHFWRU DQG HPSOR\HHV ,Q WKH &RPPLWWHH DFNQRZOHGJHG UHSRUWV IURP GLIIHUHQW SDUWLHV ZKR DUH UHVSRQVLEOH LQ ORRNLQJ DIWHU VWDNHKROGHUV LQ RUGHU WR PRQLWRU DQG DVVHVV WKH DGHTXDF\ RI FRPSOLDQFH DQG LO XVWUDWH WDQJLEOH FRUSRUDWH JRYHUQDQFH 7KH &RPPLWWHH DOVR SURYLGHG KHOSIXO FRPPHQWV DQG UHFRPPHQGDWLRQV IRU IXWXUH LPSURYHPHQW w 7KH &RPPLWWHH VXSHUYLVHG FRPSOHWH GLVFORVXUH RI 'LUHFWRUV DQG H[HFXWLYHV UHSRUWV DQG LWV FRQQHFWHG WUDQVDFWLRQ FRQIOLFWV RI LQWHUHVW DQG TXDOLILFDWLRQV RI ,QGHSHQGHQW 'LUHFWRUV HYHU\ \HDU HQG DQG ZLWK HDFK QHZ DSSRLQWPHQW RU FKDQJH 7KH &RPPLWWHH DOVR DFNQRZOHGJHG UHSRUWV RI SRWHQWLDO FRQIOLFWV RI LQWHUHVW DPRQJ 377 &KHP *URXS HPSOR\HHV ZKLFK DOVR UHTXLUHG DW HDFK \HDU HQG 3URPRWLRQ RI &RPSOLDQFH ZLWK *RRG &RUSRUDWH *RYHUQDQFH 3ROLF\ w 7KH &RPPLWWHH HQGRUVHG 377 &KHPLFDO V JRRG FRUSRUDWH JRYHUQDQFH SODQ IRFXVLQJ LQ VWDQGDUGL]H LWV &RUSRUDWH *RYHUQDQFH SROLF\ WKURXJK D XQLYHUVDO SUDFWLFH 7KH &RPPLWWHH UHJXODUO\ VXSHUYLVHG PRQLWRUHG DQG UHSRUWHG LWV SHUIRUPDQFH WR WKH %RDUG RI 'LUHFWRUV w &RQVLGHUHG WKH FRPSOHWLRQ DQG WKH DSSURSULDWH FRPSOLDQFH ZLWK WKH 377 &KHPLFDO V JRRG FRUSRUDWH JRYHUQDQFH SULQFLSOHV DV ZHOO DV FRQWLQXRXV DGMXVWPHQW DQG JXLGHOLQHV DQG UHSRUW FRPSOLDQFH SULQFLSOHV WR WKH VKDUHKROGHUV LQ WKH DQQXDO UHSRUW w 7R UHYLHZ WKH &RPPLWWHH SHUIRUPDQFH HYDOXWLRQ GXULQJ WKH \HDU VXPPDUL]HG LWV RZQ SHUIRUPDQFH DQG UHSRUW WR WKH %RDUG RI 'LUHFWRUV DQG GLVFORVHG WR WKH VKDUHKROGHUV LQ WKH DQQXDO UHSRUW

157

w 7R UHYLHZ WKH &RPPLWWHH SHUIRUPDQFH HYDOXWLRQ GXULQJ WKH \HDU VXPPDUL]HG LWV RZQ SHUIRUPDQFH DQG UHSRUW WR WKH %RDUG RI GLUHFWRUV DQG GLVFORVHG WR WKH VKDUHKROGHUV LQ WKH DQQXDO UHSRUW w 3URYLGHG UHFRPPHQGDWLRQV DQG VXSSRUWHG IRU 377 &KHP *URXS V RSHQ KRXVHV LQ 5D\RQJ SURYLQFH DORQJ ZLWK DFWLYLWHV IRU VKDUHKROGHUV LQ SDUWLFLSDWLQJ ZLWK WKH FRPPXQLWLHV VWXGHQWV H[HFXWLYHV DQG HPSOR\HHV DV SDUW RI FRUSRUDWH VRFLDO UHVSRQVLELOLW\ &65 7KURXJK WKH 5HIRUHVWDWLRQ WR &RRO WKH (DUWK LQ 'HGLFDWLRQ WR +0 WKH .LQJ RQ WKH :RUOG (QYLURQPHQW 'D\ ZKLFK DGGHG JUHHQ DUHDV WR WKH 0DS 7D 3KXW FRPPXQLW\ DW :DW 0DS &KDOXW 6FKRRO w 7R LO XVWUDWH VXVWDLQDEOH JURZWK XQGHU WKH JRRG FRUSRUDWH JRYHUQDQFH SULQFLSOHV RI OLVWHG 377 *URXS FRPSDQLHV WKH &RPPLWWHH YDOXHG WKH SURPRWLRQ RI FRUSRUDWH JRYHUQDQFH E\ MRLQLQJ WKH 377 *URXS &* 'D\ 7KH &RGH WR *URZWK DFWLYLW\ &RQWLQXRXV $VVHVVPHQW DQG 'HYHORSPHQW w )RU PRUH WDQJLEOH DQG VXVWDLQHG GHYHORSPHQW WKH &RPPLWWHH SURYLGHG JXLGHOLQHV IRU 'LUHFWRUV GHYHORSPHQW E\ VWDJLQJ OHFWXUHV IURP H[WHUQDO H[SHUWV WR SURYLGH XSGDWHG HVVHQWLDO LQIRUPDWLRQ DQG NQRZOHGJH FRQFHUQLQJ ZLWK WKHLU SHUIRUPDQFH LQ DGGLWLRQ WR WKHLU ,2' WUDLQLQJ w 7KH &RPPLWWHH SURYLGHG JXLGHOLQHV IRU 'LUHFWRUV UROH GHYHORSPHQW )RU LQVWDQFH WR DOORZ IUHH YLHZV RQ DVVRUWHG DVSHFWV VWDJHG PHHWLQJV DPRQJ ,QGHSHQGHQW 'LUHFWRUV DQG DPRQJ 1RQ H[HFXWLYH 'LUHFWRUV UHVSHFWLYHO\ LQ WKH DEVHQFH RI WKH PDQDJHPHQW 7KH RXWFRPHV RI WKHVH PHHWLQJV ZHUH UHOD\HG WR WKH PDQDJHPHQW w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

&KDLUPDQ RI WKH &RUSRUDWH *RYHUQDQFH &RPPLWWHH )HEUXDU\

158

Annual Report 2010 PTT Chemical Public Company Limited

5HSRUW RI WKH 1RPLQDWLRQ &RPPLWWHH 'HDU 6KDUHKROGHUV

9DOXLQJ FRQIRUPDQFH WR JRRG FRUSRUDWH JRYHUQDQFH SULQFLSOHV WKH %RDUG RI 'LUHFWRUV DSSRLQWHG WKH 1RPLQDWLRQ &RPPLWWHH WR SHUIRUP %RDUG DVVLJQHG GXWLHV ZLWK WUDQVSDUHQF\ RQ GHILQLQJ UHFUXLWPHQW FULWHULD DQG QRPLQDWLQJ 'LUHFWRUV DQG WKH 3UHVLGHQW &(2 ZLWK TXDOLILFDWLRQ H[SHULHQFH DQG H[SHUWLVH IRU DSSURYDO E\ WKH %RDUG RU WKH VKDUHKROGHUV PHHWLQJ RU ERWK 7KH 1RPLQDWLRQ &RPPLWWHH FRQVLVW RI 0U 3DLEXO\D 3XQ\DYXWWL DV WKH &KDLUPDQ RI WKH &RPPLWWHH ZKR LV DQ ,QGHSHQGHQW 'LUHFWRU ZLWK 0U 3UDM\D 3KLQ\DZDW DQG *HQHUDO :LQDL 3KDWWL\DNXO DV PHPEHUV 7KHLU WHUPV EHJDQ RQ 'HFHPEHU DQG ZLOO HQG RQ 'HFHPEHU 0HHWLQJ LQ DQG 3HUIRUPDQFH

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

159

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

&KDLUPDQ RI WKH 1RPLQDWLRQ &RPPLWWHH )HEUXDU\

160

Annual Report 2010 PTT Chemical Public Company Limited

5HSRUW RI WKH 5HPXQHUDWLRQ &RPPLWWHH 'HDU 6KDUHKROGHUV

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

161

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

&KDLUPDQ RI WKH 5HPXQHUDWLRQ &RPPLWWHH )HEUXDU\

162

Annual Report 2010 PTT Chemical Public Company Limited

5HSRUW RI %RDUG RI 'LUHFWRUV

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

0U 1RQWLJRUQ .DQFKDQDFKLWUD &KDLUPDQ

0U 9HHUDVDN .RVLWSDLVDO

3UHVLGHQW &(2

),1$1&,$/ 5(3257

164

Annual Report 2010 PTT Chemical Public Company Limited

5HSRUW RI WKH $XGLW &RPPLWWHH 'HDU 6KDUHKROGHUV

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

165

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

166

Annual Report 2010 PTT Chemical Public Company Limited

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

167

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

9DLURM -LQGDPDQHHSLWDN

&HUWLILHG 3XEOLF $FFRXQWDQW 5HJLVWUDWLRQ 1R .30* 3KRRPFKDL $XGLW /WG %DQJNRN )HEUXDU\

168

Assets

Note

Consolidated

Separate

financial statements

2010

2009

2010

2009

(in Baht) Current assets Cash and cash equivalents

14,837,702,189

11,050,292,553

11,633,781,606

7,767,293,426 6,355,240,864

Trade accounts receivable and notes receivable

4, 6

11,406,754,628

9,667,798,873

5,687,163,392

Other accounts receivable from related parties

895,895,996

748,777,309

206,580,605

106,047,186

Inventories

11,084,237,188

8,537,365,815

4,461,627,998

4,332,985,726

Short-term loans to related parties

13,447,000,000

11,277,000,000

Current portion of long-term loans to related parties

5,546,000,000

3,313,000,000

54,265,473

67,505,200

Value-added tax receivable

115,168,304

1,136,636,294

Other current assets

1,315,194,379

1,273,644,347

678,166,031

767,026,845

Total current assets

39,654,952,684

32,414,515,191

41,714,585,105

33,986,099,247

38,392,325,977

Non-current assets Investments in subsidiaries

4, 8

40,962,010,977

Investments in jointly-controlled entity

4, 8

210,000,000

Investments in associates

4, 9

9,735,319,613

8,370,334,303

8,587,851,913

8,478,066,913

Other long-term investments

324,374,468

323,196,388

Long-term loans to related parties

Property, plant and equipment

11, 14

290,238,392

20,681,000,000

26,027,000,000

109,240,345,477

111,063,466,713

39,875,592,727

39,574,556,078 729,153,215

Intangible assets

6,627,283,670

6,519,820,210

728,538,916

Deferred tax assets

293,543,965

131,906,503

4,791,389

3,096,578

2,145,810,882

1,427,685,166

1,127,409,404

625,574,649

Total non-current assets

128,366,678,075

127,836,409,283

112,467,433,718

114,330,011,802

Total assets

168,021,630,759

160,250,924,474

154,182,018,823

148,316,111,049

Other non-current assets

The accompanying notes are an integral part of these financial statements.

169

Liabilities and equity

Note

Consolidated

Separate

financial statements

2010

2009

2010

2009

(in Baht) Current liabilities 14

1,459,861,740

771,721,822

Trade accounts payable

4, 15

7,845,586,674

5,891,962,161

5,309,472,510

Other accounts payable

4, 16

Short-term loans from financial institutions

4,318,542,340

1,488,551,323

1,260,311,691

663,017,864

537,166,008

Retention payables

42,652,717

490,695,673

23,333,217

186,456,986

Payables to contractors

917,199,789

1,451,959,603

499,278,494

665,776,081

3,107,199,197

855,546,545

1,983,121,212

Current portion of long-term loans

Current portion of debentures

Income tax payable

427,822,670

1,339,266,972

309,087,259

Other current liabilities

1,906,974,870

1,721,602,422

896,830,537

633,876,421

17,195,848,980

14,183,066,889

9,684,141,093

8,483,050,459

11,255,298,471

12,817,834,335

10,707,787,878

11,090,909,091

Debentures

29,443,918,457

30,398,595,244

29,443,918,457

30,398,595,244

Deferred tax liabilities

1,080,889,349

881,969,619

886,487,168

720,564,582

Total current liabilities

400,000,000

545,454,545 400,000,000 1,195,778,078

Non-current liabilities Long-term loans from financial institutions

1,082,542,235

876,436,935

404,115,383

268,559,154

Total non-current liabilities

Other non-current liabilities

42,862,648,512

44,974,836,133

41,442,308,886

42,478,628,071

Total liabilities

60,058,497,492

59,157,903,022

51,126,449,979

50,961,678,530

The accompanying notes are an integral part of these financial statements.

170

Consolidated

Separate

financial statements Liabilities and equity

Note

2010

financial statements

2009

2010

2009

(in Baht) Equity Share capital

Authorised share capital Issued and paid-up share capital Reserves

15,191,153,000

15,158,208,000

15,010,400,000

15,158,208,000

15,010,400,000

31,728,079,018

30,892,963,818

31,728,079,018

30,892,963,818

234,348,736

376,268,307

10,998,638

1,519,115,300

Share premium Currency translation changes Investment changes Retained earnings Appropriated Legal reserve Loan repayment reserve

1,519,115,300

807,802,564

5,932,994,126

50,716,313,237

44,713,499,156

47,909,369,836

43,191,156,711

106,107,859,619

99,264,041,909

103,055,568,844

97,354,432,519

1,855,273,648

1,828,979,543

Total equity

107,963,133,267

101,093,021,452

103,055,568,844

97,354,432,519

Total liabilities and equity

168,021,630,759

160,250,924,474

154,182,018,823

148,316,111,049

Projects expansion reserve Unappropriated Total equity attributable to equity holders of the Company Minority interests

The accompanying notes are an integral part of these financial statements.

171

Note

Consolidated

Separate

financial statements

2010

2009

2010

2009

(in Baht) Revenues Revenue from sale of goods Revenue from rendering of services Dividends income Interest income

4, 28

98,656,003,913

83,952,092,721

4, 28

2,431,290,126

4,8,9,21 4, 21

Net foreign exchange gain Other income

4, 21

Total revenues

58,084,976,345

59,930,898,598

2,077,078,053

353,780,999

333,916,864

21,090,045

4,171,011,741

975,212,042

163,387,735

219,177,658

2,112,830,806

2,001,587,050

1,475,848,967

648,469,768

1,469,550,233

589,950,500

459,882,792

165,022,462

580,001,383

603,803,065

103,186,413,533

87,082,930,707

66,772,151,507

64,435,368,119

83,491,856,323

69,428,524,825

51,289,285,479

48,659,672,510

636,876,413

1,017,941,703

105,765,047

93,819,399

Expenses Cost of sale of goods Cost of rendering of services

4, 7 4 4, 22

1,522,682,298

1,455,118,072

14,032,519

17,097,136

Administrative expenses

4,329,240,430

3,267,423,124

2,970,696,680

2,470,488,436

Management benefit expenses

200,100,670

189,982,519

112,587,183

97,670,302

90,180,756,134

75,358,990,243

54,492,366,908

51,338,747,783

1,362,215,355

144,450,952

14,367,872,754

11,868,391,416

12,279,784,599

2,239,176,094

2,259,379,686

2,119,310,246

2,078,297,855

12,128,696,660

9,609,011,730

10,160,474,353

11,018,322,481

Selling expenses

Total expenses

Sh off profit Share fit off associates, i t nett off income tax expense

Profit before finance costs and income tax expense Finance costs

Profit before income tax expense Income tax expense

Net profit for the year

13,096,620,336

1,388,371,072

2,328,589,820

1,154,839,295

1,896,423,820

10,740,325,588

7,280,421,910

9,005,635,058

9,121,898,661

10,290,236,014

6,801,876,570

9,005,635,058

9,121,898,661

Profit attributable to: Equity holders of the Company Minority interest Net profit for the year

Earnings per share

450,089,574

478,545,340

10,740,325,588

7,280,421,910

9,005,635,058

9,121,898,661

Basic

6.83

4.54

5.98

6.09

Diluted

6.81

4.54

5.96

6.09

The accompanying notes are an integral part of these financial statements.

15,158,208,000

The accompanying notes are an integral part of these financial statements.

Balance at 31 December 2010

Dividends

147,808,000

Total recognised income and expense

Net profit for the year

Issue of ordinary shares

Net loss recognised directly in equity

31,728,079,018

835,115,200

30,892,963,818

15,010,400,000

Balance at 1 January 2010

237,887,600

Translation of financial statement differences

15,010,400,000

Balance at 31 December 2009

Dividends

42,104,000

Total recognised income and expense

Net profit for the year

Issue of ordinary shares

Net loss recognised directly in equity -

30,655,076,218

14,968,296,000

234,348,736

(141,919,571)

376,268,307

(78,316,712)

454,585,019

changes

translation

premium

paid-up

share capital

Translation of financial statement differences

Balance at 1 January 2009

Note

Currency

Issued and

Reserves

10,998,638

(40)

10,998,678

holding

investment

Change in

1,519,115,300

Legal reserve

807,802,564

(in Baht)

reserve

repayment

Loans

Appropriated to

5,932,994,126

reserve

expansion

Projects

Retained earnings

Consolidated financial statements

50,716,313,237

(4,287,421,933)

10,290,236,014

44,713,499,156

(2,394,698,760)

6,801,876,570

40,306,321,346

Unappropriated

Total equity

106,107,859,619

(4,287,421,933)

982,923,200

10,290,236,014

(141,919,571)

99,264,041,909

(2,394,698,760)

279,991,560

6,801,876,570

(78,316,712)

94,655,189,251

the Company

equity holders of

attributable to Minority

1,855,273,648

(473,121,800)

75,000,000

450,089,574

(25,673,669)

1,828,979,543

(464,380,644)

309,029,537

478,545,340

(36,500,326)

1,542,285,636

interests

Total

107,963,133,267

(4,760,543,733)

1,057,923,200

10,740,325,588

(167,593,240)

101,093,021,452

(2,859,079,404)

589,021,097

7,280,421,910

(114,817,038)

96,197,474,887

equity

172

Dividends

30 15,158,208,000

The accompanying notes are an integral part of these financial statements.

Balance at 31 December 2010

147,808,000

31,728,079,018

835,115,200

Total recognised income and expense

Issue of ordinary shares

30,892,963,818

15,010,400,000

30,892,963,818

237,887,600

30,655,076,218

premium

Net profit for the year

Balance at 1 January 2010

15,010,400,000

Balance at 31 December 2009

Dividends

42,104,000

Total recognised income and expense

Issue of ordinary shares

14,968,296,000

share capital

Net profit for the year

Balance at 1 January 2009

Note Legal reserve

1,519,115,300

807,802,564

(in Baht)

reserve

repayment

paid-up

Loans

5,932,994,126

reserve

expansion

Projects

Retained earnings Appropriated to

Issued and

Reserves

Separate financial statements

47,909,369,836

(4,287,421,933)

9,005,635,058

43,191,156,711

(2,394,698,760)

9,121,898,661

36,463,956,810

Unappropriated

103,055,568,844

(4,287,421,933)

982,923,200

9,005,635,058

97,354,432,519

(2,394,698,760)

279,991,600

9,121,898,661

90,347,241,018

the Company

equity holders of

attributable to

Total equity

173

174

Consolidated

Separate

financial statements 2010

financial statements

2009

2010

2009

(in Baht) Cash flows from operating activities Net profit for the year

10,740,325,588

7,280,421,910

9,005,635,058

9,121,898,661

5,568,479,380

4,913,676,157

2,977,279,784

2,861,550,897

(2,112,830,806)

(2,001,587,050)

2,119,310,246

2,078,297,855

Adjustments for Depreciation and amortisation Interest income Finance costs Unrealised gain on exchange Doubtful debts expense

(163,387,735) 2,239,176,094 (1,315,482,373) 6,821,367

Dividends income

(219,177,658) 2,259,379,686 (562,780,719) 13,994,116 (21,090,045)

(1,399,115,249) (4,171,011,741)

(539,996,034) (975,212,042)

Reversal of allowance for loss on decline in value of inventories Allowance for obsolete stock

(14,706,868) 7,521,828

(785,293,105) (79,931)

1,494,303

(283,525,238) (79,931)

Impairment loss on intangible assets and property, plant and equipment (Gain) loss on disposal of property, plant and equipment

(21,153,362)

3,223,982

154,142,936

19,975,560

153,905,087

(35,473,865)

(17,608,257)

(36,334,689)

(17,608,257)

(1 362 215 355) (1,362,215,355)

(144 450 952) (144,450,952)

Realised deferred pipeline income and equipment and other income Sh fit off associates, i t nett off iincome ttax expense Share off profit Income tax expense

1,388,371,072

2,328,589,820

1,154,839,295

1,896,423,820

17,038,275,771

15,202,947,940

7,559,241,761

12,294,067,768

(1,887,136,982)

(3,237,862,666)

(148,964,727)

(674,468,956)

(100,533,419)

67,337,215 (819,392,390)

Changes in operating assets and liabilities Trade accounts receivable and notes receivable Other accounts receivable from related parties Inventories Value-added tax receivable Other current assets Other non-current assets

(212,656,024) 1,021,478,228 (270,783) (54,961,832)

Trade accounts payable

1,905,197,340

Other accounts payable

342,527,803

Retention payables Other current liabilities Other non-current liabilities

667,201,178

(3,302,177,275)

(295,100,306)

(132,468,613)

(916,059,731)

13,239,728

153,071,363

(295,692,251)

97,453,359

(348,117,331)

(146,402,448)

(126,648,819)

2,693,145,552

990,868,729

(237,720,477) 2,747,658,772

(58,423,086)

128,656,394

(465,266,477)

72,104,528

(172,721,517)

27,241,584

(52,944,149)

358,417,329

241,496,704

176,211,249

85,522,318

Income tax paid

(2,300,898,839)

Net cash provided by operating activities

15,269,901,647

The accompanying notes are an integral part of these financial statements.

(220,197,815) (910,153,309) 11,572,254,781

151,738,122 (1,877,302,340) 7,440,221,267

(981,060,875)

53,860,529 (714,105,378) 9,116,874,754

175

Consolidated

Separate

financial statements 2010

financial statements

2009

2010

2009

(in Baht) Cash flows from investing activities Interest received Dividends received Purchase of property, plant and equipment Sale of property, plant and equipment

152,502,518 108,199,041 (6,727,379,581) 638,789,235

238,733,062 124,703,586 (17,369,087,056) 35,171,343

2,103,188,261

2,022,922,399

4,172,061,741

1,440,870,042

(3,120,311,047)

(4,524,512,399)

32,209,808

5,853,049

Increase in short-term loans to related parties

(3,390,000,000)

(4,402,000,000)

Proceeds from short-term loans to related parties

1,220,000,000

1,120,000,000

Increase in long-term loans to related parties

Proceeds from long-term loans to related parties

Increase in intangible assets

(541,724,421)

Net cash outflow for investments in subsidiaries Net cash outflow for investments in associates

(109,785,000)

Proceeds from sale of long-term investments Net cash provided by (used in) investing activities

(6,479,398,208)

(502,087,681) (327,975,000) 27,231,377 (17,773,310,369)

(200,000,000) 3,313,000,000

(7,661,786,800) -

(124,649,278)

(371,880,638)

(2,569,685,000)

(4,639,785,840)

(109,785,000)

(327,975,000)

1,326,029,485

(17,338,295,187)

Cash flows from financing activities Interest paid

(2,219,091,064)

(2,319,852,606)

(2,104,630,528)

(2,085,323,116)

Di id d paid Dividends id

(4 (4,760,543,733) 760 543 733)

(2 (2,880,852,811) 880 852 811)

(4 (4,287,421,933) 287 421 933)

(2 (2,394,698,760) 394 698 760)

(194,561,974)

(77,531,609)

(145,178,205)

(37,033,290)

752,873,239

(177,772,611)

Finance lease payments (Repayment of) proceeds from short-term loans from financial institutions Proceeds from long-term borrowings Repayment of long-term borrowings

1,740,000,000 (884,546,545)

Proceeds from issue of debentures Redemption of debentures Proceeds from issue of share capital Net cash used in financing activities

Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year

235,055,000 (1,592,793,843) 3,000,000,000

1,600,000,000 (545,454,545) -

(545,454,545) 3,000,000,000

(400,000,000)

982,923,200

317,440,712

982,923,200

279,991,600

(4,982,946,877)

(3,896,307,768)

(4,899,762,011)

(2,182,518,111)

3,807,556,562

(10,097,363,356)

3,866,488,741

(10,403,938,544)

11,050,292,553

21,174,886,782

7,767,293,426

18,171,231,970

Effect of exchange rate changes on balances held in foreign currencies Cash and cash equivalents at end of year

(20,146,926) 14,837,702,189

The accompanying notes are an integral part of these financial statements.

(27,230,873) 11,050,292,553

(561) 11,633,781,606

7,767,293,426

176

These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Board of Directors on 24 February 2011

General information PTT Chemical Public Company Limited, the “Company”, is incorporated in Thailand and has its registered offices as follows: Head Office

: 555/1, Energy Complex, Building A, 15th - 18th Floor, VibhavadiRangsit Road, Chatuchak, Bangkok, Thailand

Branch 2 (I-1 Road Branch) : 14, I-1 Road, Tumbon Map Ta Phut, Amphoe Mueang Rayong, Rayong, Thailand Branch 3 (I-4 Road Branch)

: 9, I-4 Road, Tumbon Map Ta Phut, Amphoe Mueang Rayong, Rayong, Thailand

: 19, Rong Pui Road, Tumbon Map Ta Phut, Amphoe Mueang Branch 4 (Jetty and Buffer Tank Farm Rayong, Rayong, Thailand Branch) Branch 5 (Radniyom Road)

: 59, Radniyom Road, Tumbon Noenphra, Amphoe Mueang Rayong, Rayong, Thailand

: 24/9, Pakorn Songkrao-Rat Road, Tumbon Map Ta Put, Amphoe Branch 7 (Pakorn Songkrao-Rat Road Mueang Rayong, Rayong, Thailand Branch) The Company registered to terminate Branch 1 (Suntowers A Branch) and Branch 6 (Suntowers B Branch) and registered to change the address of Head Office in March 2010. The Company was listed on the Stock Exchange of Thailand in December 2005. The Company is a company in the PTT Public Company Limited (“PTT”) group of companies. PTT is incorporated in Thailand and is the major shareholder of the Company, holding 48.68% of the Company’s issued and paid-up share capital. The principal businesses of the Company are production and distribution of Ethylene, Propylene Polyethylene and Biochemical products. By-products are Mixed C4, Pyrolysis gasoline, Cracker bottom and tail gas. Minor activities are production and distribution of electricity, water, steam and other utilities. In addition, the Company also operates production support facilities such as jetty and buffer tank farm services for liquid chemical, oil and gas. Details of the Company’s subsidiaries and jointly - controlled entities as at 31 December 2010 and 2009 were as follows:

177

Name of the entity

Type of business

Direct subsidiaries Bangkok Polyethylene Plc. Manufacturing and distributing petrochemical products Bio Creation Co., Ltd. Manufacturing and (Formerly Thai Choline distributing petrochemical Chloride Co., Ltd.) products, health and nutrition products Bio Spectrum Co., Ltd. Manufacturing and distributing biochemical products TOC Glycol Co., Ltd. Manufacturing and distributing petrochemical products Thai Ethanolamines Manufacturing and Co., Ltd. distributing petrochemical products Thai Oleochemicals Manufacturing and Co., Ltd. distributing biochemical products Thai Tank Terminal Service for the storage and Limited handling of liquid chemicals, oil and gas PTT Polyethylene Manufacturing and Co., Ltd. distributing petrochemical products PTT Maintenance and Maintenance factory and Engineering Co., Ltd. services engineering NPC Safety and Safety and environmental Environmental Service services Co., Ltd. PTT Chemical Holding and operating International Pte. Ltd. international business Indirect subsidiaries Thai Fatty Alcohol Manufacturing and Co., Ltd. distributing biochemical products Thai Styrenics Co., Ltd. Manufacturing and distributing petrochemical products PTT Chemical Services rendering to the International (Asia Group Pacific ROH) Ltd. Jointly-controlled entity Thai Ethoxylate Co., Ltd. Manufacturing and distributing petrochemical products

Country of incorporation

Ownership interest (%) 2010 2009

Thailand

100

Thailand

100

Thailand

100

Thailand

100

Thailand

100

Thailand

100

Thailand

100

Singapore

100

Thailand

100

Thailand

100

Thailand

100

Thailand

178

Name of the entity

Type of business

Indirect jointly-controlled entity Emery Oleochemical (M) Manufacturing and distributing biochemical Sdn. Bhd. products

Country of incorporation

Malaysia

Ownership interest (%) 2010 2009 50

Basis of preparation of the financial statements The financial statements issued for Thai reporting purposes are prepared in the Thai language. This English translation of the financial statements has been prepared for the convenience of readers not conversant with the Thai language. The financial statements are prepared and presented in Thai Baht. All financial information presented in Thai Baht has been rounded in the notes to the financial statements to the nearest million . They are prepared on the historical cost basis except as stated in the accounting policies. The financial statements are prepared in accordance with Thai Financial Reporting Standards (“TFRS”) and guidelines promulgated by the Federation of Accounting Professions (“FAP”) and with generally accepted accounting principles in Thailand. During 2010, the FAP announced the re-numbering of the following TFRS. Former no.

Revised no.

Topic

TAS 11

TAS 101

Doubtful Account and Bad Debts

TAS 26

TAS 102

Income Recognition For Real Estate Business

TAS 27

TAS 103

Disclosures in the Financial Statements of Banks and Similar Financial Institutions

TAS 34

TAS 104

Accounting for Troubled Debt Restructuring

TAS 40

TAS 105

Accounting for Investment in Debt and Equity Securities

TAS 42

TAS 106

Accounting For Investment Companies

TAS 48

TAS 107

Financial Instruments Disclosure and Presentation

The Group/Company has adopted the revised Framework for the Preparation and Presentation of Financial Statements (revised 2010), which was issued by the FAP during 2010 and effective on 26 May 2010. The adoption of the revised framework does not have any material impact on the consolidated or separate Company’s financial statements. The FAP has issued during 2010 a number of new and revised TFRS which are not currently effective and have not been adopted in the preparation of these financial statements. These new and revised standards and interpretations are disclosed in note 35.

179

The preparation of financial statements in conformity with TFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from estimates. The preparation of financial statements in conformity with TFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may diff from estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which estimates are revised and in any future periods affected. Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements is included in the following notes: Note 10 Note 12 Note 13 Note 31

Other long-term investments Intangible assets Deferred tax Financial instruments

Significant accounting policies

(a)

Basis of consolidation The consolidated financial statements relate to the Company and its subsidiaries and jointly-controlled entities (together referred to as the “Group”) and the Group’s interests in associates. Business combinations Business combinations are accounted for under the purchase method. The cost of an acquisition is measured at the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Business combinations of entities or businesses under common control are accounted for using a method similar to the pooling of interest method and in accordance with the Guideline issued in 2010 by the FAP. Subsidiaries Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Group. Jointly-controlled entities Jointly-controlled entities are those entities over whose activities the Group has joint control, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. The consolidated financial statements include the Group’s proportionate share of the entities’ assets, liabilities, revenue and expenses combined with items of a similar nature on a line by line basis, from the date that joint control commences until the date that joint control ceases.

180

Associates Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity. The consolidated financial statements include the Group’s share of the income, expenses and equity movements of associates after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. When the Group’s share of losses exceeds its interest in an associate, the Group’s carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. (b)

Foreign currencies Foreign currency transactions Transactions in foreign currencies are translated to Thai Baht at the foreign exchange rates ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Thai Baht at the foreign exchange rates ruling at that date. Foreign exchange differences arising on translation are recognised in the statement of income. Non-monetary assets and liabilities measured at cost in foreign currencies are translated to Thai Baht using the foreign exchange rates ruling at the dates of the transactions. Foreign entities The assets and liabilities of foreign entities are translated to Thai Baht at the foreign exchange rates ruling at the reporting date. Goodwill and fair value adjustments arising on the acquisition of foreign entities are stated at exchange rates ruling on the reporting date.

181

The revenues and expenses of foreign entities are translated to Thai Baht at rates approximating the foreign exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on translation are recognised in a separate component of equity until disposal of the investments. Where monetary items, in substance, form part of the Groupâ&#x20AC;&#x2122;s net investment in a foreign entity, foreign exchange differences arising on such monetary items and related hedges are recognised directly in a separate component of equity until disposal of the investment. (c)

Derivative financial instruments Derivative financial instruments are used to manage exposure to foreign exchange, interest rate arising from operating and financing activities. Derivative financial instruments are not used for trading purposes. However, derivatives that do not qualify for hedge accounting are accounted for as trading instruments. Derivative financial instruments are recognised initially at fair value; attributable transaction costs are recognised in the statement of income when incurred. Subsequent to initial recognition, they are remeasured at fair value. The gain or loss on remeasurement to fair value is recognised immediately in the statement of income. The fair value of interest rate swaps is based on broker quotes at the reporting date. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the reporting date. The fair value of forward exchange contracts is based on their listed market price, if available. If a listed market price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price at the reporting date for the residual maturity of the contract using a risk-free interest rate (based on government bonds).

182

(d)

Cash and cash equivalents Cash and cash equivalents comprise cash balances, call deposits and highly liquid short-term investments. Bank overdrafts that are repayable on demand are a component of financing activities for the purpose of the statement of cash flows.

(e)

Trade and other accounts receivable Trade and other accounts receivable are stated at their invoice value less allowance for doubtful accounts. The allowance for doubtful accounts is assessed primarily on analysis of payment histories and future expectations of customer payments. Bad debts are written off when incurred.

(f)

Inventories Raw materials, work in progress and finished goods Inventories are stated at the lower of cost and net realisable value. Cost is calculated using the weighted average cost principle, and comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. In the case of manufactured inventories and work-in-progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs to complete and to make the sale.

(g)

Investments Investments in subsidiaries, jointly-controlled entities and associates Investments in subsidiaries, jointly-controlled entities and associates in the separate financial statements of the Company are accounted for using the cost method. Investments in associates in the consolidated financial statements are accounted for using the equity method. Investments in equity securities Equity securities which are not marketable are stated at cost less any impairment losses. Disposal of investments On disposal of an investment, the difference between net disposal proceeds and the carrying amount is recognised in the statement of income. If the Group/Company disposes of part of its holding of a particular investment, the deemed cost of the part sold is determined using the weighted average method applied to the carrying value of the total holding of the investment.

183

(h)

Property, plant and equipment Owned assets Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Leased assets Leases in terms of which the Group/Company substantially assumes all the risk and rewards of ownership are classified as finance leases. Property, plant and equipment acquired by way of finance leases is capitalised at the lower of its fair value and the present value of the minimum lease payments at the inception of the lease, less accumulated depreciation and impairment losses. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to the statement of income. Depreciation Depreciation is charged to the statement of income on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. The estimated useful lives are as follows: Plant, machinery and equipment Factory tools and equipment Buildings and other constructions Leasehold improvement Furniture, fixtures and office equipment Vehicles

3-30 3-20 5-25 5-30 5-20 3-20

No depreciation is provided on freehold land or assets under construction.

years years years years years years

184

(i)

Intangible assets Goodwill Goodwill in a business combination represents the excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired. The Group changed its accounting policy for goodwill with effect from 1 January 2008 as follows: Acquisitions prior to 1 January 2008 Goodwill was stated at cost from the date of initial recognition and amortised over its estimated useful life of 20 years. On 1 January 2008, the Group/Company discontinued amortisation of goodwill. The remaining balance is subject to testing for impairment, as described in note 3 (j). Acquisitions on or after 1 January 2008 Goodwill is measured at cost less accumulated impairment losses. Goodwill is tested for impairment as described in note 3 (j). Other intangible assets Other intangible assets that are acquired by the Group/Company, which have finite useful lives, are stated at cost less accumulated amortisation and impairment losses. Other intangible assets are amortised in the statement of income on a straight-line basis over their estimated useful lives from the date that they are available for use. The estimated useful lives are as follows: Production licence fees Computer software Right to use pipe rack Trademark

(j)

10- 25 3-15 9-15 10

years years years years

Impairment The carrying amounts of the Group’s/Company’s assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts are estimated. For goodwill, the recoverable amount is estimated at each reporting date, and as and when indicators of impairment are identified. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The impairment loss is recognised in the statement of income unless it reverses a previous revaluation credited to equity, in which case it is charged to equity. Calculation of recoverable amount The recoverable amount of a non-financial asset is the greater of the asset’ s value in use and fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cashgenerating unit to which the asset belongs.

185

Reversals of impairment An impairment loss in respect of a financial asset is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised. An impairment loss in respect of goodwill is not reversed. Impairment losses recognised in prior periods in respect of other non-financial assets are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assetâ&#x20AC;&#x2122;s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (k)

Interest-bearing liabilities Interest-bearing liabilities are recognised initially at fair value less attributable transaction charges. Subsequent to initial recognition, interest-bearing liabilities are stated at amortised cost with any difference between cost and redemption value being recognised in the statement of income over the period of the borrowings on an effective interest basis.

(l)

Trade and other accounts payable Trade and accounts payable are stated at cost.

(m)

Employee benefits Defined contribution plans Obligations for contributions to defined contribution pension plans are recognised as an expense in the statement of income as incurred. Share based payments The employee share option programme allows certain of the Groupâ&#x20AC;&#x2122;s directors and employees to acquire shares of the Company under certain conditions. The proceeds received on exercise of the options, net of any directly attributable transaction costs, are credited to share capital (nominal value) and share premium when the options are exercised.

(n)

Provisions A provision is recognised when the Group/Company has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

(o)

Revenue Revenue excludes value added taxes and is arrived at after deduction of trade discounts.

186

Sale of goods and services rendered Revenue is recognised in the statement of income when the significant risks and rewards of ownership have been transferred to the buyer. No revenue is recognised if there is continuing management involvement with the goods or there are significant uncertainties regarding recovery of the consideration due, associated costs or the probable return of goods. Service income is recognised as services are provided. Rental income Rental income from investment property is recognised in the statement of income on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income. Contingent rentals are recognised as income in the accounting period in which they are earned. Interest and dividend income Interest income is recognised in the statement of income as it accrues. Dividend income is recognised in the statement of income on the date the Groupâ&#x20AC;&#x2122;s/Companyâ&#x20AC;&#x2122;s right to receive payments is established.

(p)

Expenses Operating leases Payments made under operating leases are recognised in the statement of income on a straight line basis over the term of the lease. Lease incentives received are recognised in the statement of income as an integral part of the total lease payments made. Contingent rentals are charged to the statement of income for the accounting period in which they are incurred. Finance costs Interest expenses and similar costs are charged to the statement of income for the period in which they are incurred, except to the extent that they are capitalised as being directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to be prepared for its intended use or sale. The interest component of finance lease payments is recognised in the statement of income using the effective interest rate method.

(q)

Income tax Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the statement of income except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

187

Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill; the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor tax profit; and differences relating to investments in subsidiaries and joint venture to the extent that it is probably that they will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Related party transactions and balances Related parties are those parties linked to the Group and the Company as shareholders or by common shareholders or directors. Transactions with related parties are conducted at prices based on market prices or, where no market price exists, at contractually agreed prices. Relationships with related parties that control or jointly control the Group or are being controlled or jointly controlled by the Company or have transactions with the Group/Company were as follows: Name of entities

Country of incorporation/ nationality

Nature of relationships

PTT Plc.

Thailand

Major shareholder, some common directors and management and the Company’s director as a management

Bangkok Polyethylene Plc.

Thailand

Subsidiary, 100% shareholding, some common directors and the Company’s management as a director

Bio Creation Co., Ltd.

Thailand

Subsidiary, 100% shareholding and the Company’s management as a director

Bio Spectrum Co., Ltd.

Thailand

Subsidiary, 75% shareholding

TOC Glycol Co., Ltd.

Thailand

Subsidiary, 100% shareholding and the Company’s management as a director

Thai Ethanolamines Co., Ltd.

Thailand

Subsidiary, 100% shareholding and the Company’s management as a director

Thai Oleochemicals Co., Ltd.

Thailand

Subsidiary, 100% shareholding, some common directors and the Company’s management as a director

188

Name of entities

Country of incorporation/ nationality

Nature of relationships

Thai Tank Terminal Limited

Thailand

Subsidiary, 51% shareholding, some common directors and the Company’s management as a director

PTT Polyethylene Co., Ltd.

Thailand

Subsidiary, 100% shareholding, some common directors and management and the Company’s management as a director.

PTT Maintenance and Engineering Co., Ltd.

Thailand

Subsidiary, 60% shareholding and the Company’s management as a director

NPC Safety and Environmental Service Co., Ltd.

Thailand

Subsidiary, 100% shareholding, some common directors and the Company’s management as a director.

PTT Chemical International Pte. Ltd.

Singapore

Subsidiary, 100% shareholding , some common directors and the Company’s management as a director.

Thai Fatty Alcohols Co., Ltd.

Thailand

Subsidiary of the Company’s subsidiary, 100% shareholding by the Company’s subsidiary, some common directors and the Company’s management as a director

Thai Styrenics Co., Ltd.

Thailand

Subsidiary of the Company’s subsidiary, 100% shareholding by the Company’s subsidiary and the Company’s management as a director

PTT Chemical International (Asia PacificROH) ROH)Ltd. Ltd. Pacific

Thailand

Subsidiary, 100% shareholding, , some common directors and the Company’s management as a director

Thai Ethoxylate Co., Ltd.

Thailand

Jointly - controlled entity, 50% shareholding

Emery Oleochemical (M) Sdn. Bhd.

Malaysia

Jointly - controlled entity of the Company’s subsidiary, 50% shareholding by a subsidiary , some common directors and the Company’s management as a director

Bangkok Synthetics Co., Ltd.

Thailand

Some common shareholder

Thai Plastic and Chemical Plc.

Thailand

Some common shareholder

Thai Polypropylene Co., Ltd.

Thailand

Some common shareholder

Thai Polyethylene Co., Ltd.

Thailand

Some common shareholder

Thaioil Public Company Limited

Thailand

Major shareholding by the Company’s major shareholders and some common directors

189

Country of incorporation/ nationality

Nature of relationships

Thai Industrial Gases Plc.

Thailand

Some common directors

Thai Petroleum Pipeline Co., Ltd.

Thailand

Major shareholding by the Company’s major shareholder

Dhipaya Insurance Plc.

Thailand

PTTEP Siam Limited.

Thailand

Major shareholding by the Company’s major shareholder Subsidiary of the related party with common major shareholder

PTT Exploration and Production Plc.

Thailand

Major shareholding by the Company’s major shareholder and some common directors

PTT Aromatics and Refining Plc.

Thailand

Major shareholding by the Company’s major shareholder and some common directors

PTT Tank Terminal Ltd.

Thailand

Major shareholding by the Company’s major Shareholder and some common directors

PTT Polymer Logistic Co., Ltd.

Thailand

Major shareholding by the Company’s major Shareholder, some common directors and the Company’s management as a director

PTT Polymer Marketing Co., Ltd.

Thailand

Associate, 25% shareholding, major shareholding by the Company’s major shareholder, common directors and the Company’s management as a director

PTT Phenol Co., Ltd.

Thailand

Associate, 30% shareholding, major shareholding by the Company’s major shareholder, common directors and the Company’s management as a director

PTT Utility Co., Ltd.

Thailand

Associate, 40% shareholding , the Company’s management as a director and major shareholding by the Company’s major shareholder

PTT Asahi Chemical Co., Ltd.

Thailand

Major shareholding by the Company’s major shareholder and some common directors

PTT International Ltd.

Thailand

Major shareholding by the Company’s major shareholder and some common directors

PTT ICT Solutions Co., Ltd.

Thailand

Associate, 20% shareholding, some common directors and the Company’s management as a director

Name of entities

190

Name of entities

Country of incorporation/ nationality

Nature of relationships

Rayong Olefins Co., Ltd.

Thailand

Major shareholding by the Company’s major shareholder and some common directors

Vinythai Plc.

Thailand

Associate, 25% shareholding, some common directors and the Company’s management as a director

Siam Mitsui PTA Co., Ltd.

Thailand

Some common shareholder

Siam Styrene Monomer Co., Ltd.

Thailand

Some common shareholder

Star Petroleum Refining Co., Ltd.

Thailand

Major shareholding by the Company’s major shareholder

Eastern Fluid Transport Co., Ltd.

Thailand

Associate, 15% shareholding, 15% shareholding by the Company’s subsidiary and the Company’s management as a director

HMC Polymers Co., Ltd.

Thailand

The Company’s shareholder and some common director

Energy Complex Co., Ltd.

Thailand

Major shareholding by the Company’s major shareholder

IRPC Plc.

Thailand

Major shareholding by the Company’s major shareholder and some common directors

Alliance Petrochemical Investment (Singapore) Pte. Ltd. PTT International Trading Pte. Ltd. Ltd.

Singapore

The Company’s management as a director

Singapore

Major shareholding by the Company’s major shareholder

The pricing policies for particular types of transactions are explained further below: Transactions

Pricing policies

Revenue from sale of goods Revenue from rendering of services Purchase of goods/raw materials/ services Interest on loan

Contract price / Regional market price / World market price Contract price Contract price / Market price Average cost of fund

191

Significant transactions for the years ended 31 December 2010 and 2009 with related parties were as follows: Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) Major Shareholder Sales of goods or rendering of services Purchases of goods or receiving of services Other income Other expense Subsidiaries Sales of goods or rendering of services Purchases of goods or receiving of services Other income Other expense Interest income Dividend income Jointly - controlled entities Other income Dividend income Associates Sales of goods or rendering of services Purchases of goods or receiving of services Other income Other expense Dividend income Other related parties Sales of goods or rendering of services Purchases of goods or receiving of services Other income Other expense Dividend income

3,506 36,591 14 84

4,485 38,159 12 71

270 34,810 14 56

1,742 38,076 12 36

16,129 5,662 419 233 1,995 4,066

17,147 793 353 208 1,816 824

11 -

31 25

40,108 1,494 56 143 106

29,004 1,410 78 166 105

17,972 59 56 87 106

17,410 68 77 139 105

23,461 5,500 4 150 -

22,448 2,096 31 59 21

21,984 4,053 1 83 -

21,545 1,586 31 7 21

192

Balances as at 31 December 2010 and 2009 with related parties were as follows: Trade accounts receivable from related parties

Major Shareholder PTT Plc. Subsidiaries Bangkok Polyethylene Plc. PTT Polyethylene Co., Ltd. TOC Glycol Co., Ltd. Thai Ethanolamines Co., Ltd. Thai Oleochemicals Co., Ltd. Thai Tank Terminal Limited Thai Styrenics Co., Ltd. Associates PTT Utility Co., Ltd. PTT Polymer Marketing Co., Ltd. PTT Phenol Co., Ltd. Vinythai Plc. Other related parties Bangkok Synthetics Co., Ltd. Thai Plastic and Chemical Plc. Thai Polypropylene Co., Ltd. Thai Polyethylene Co., Ltd. Siam Mitsui PTA Co., Ltd. Siam Styrene Monomer Co., Ltd. Star Petroleum Refining Co., Ltd. Thai Industrial Gas Plc. Bangkok Industrial Gas Co., Ltd. PTTEP Siam Limited. PTT Exploration and Production Plc. PTT Aromatics and Refining Plc. PTT Asahi Chemical Co., Ltd. IRPC Plc. HMC Polymers Co., Ltd. PTT International Trading Pte. Ltd. Others Less allowance for doubtful accounts Net

Bad and doubtful debts expense for the year

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 307

352

173

933 521 8 21 6 3

1,188 507 686 1 7 10 5

34 3,234 355 504

66 1,605 265 608

901 317 501

464 247 605

154 216 165 292 6 189 7 5 2 459 9 459 298 37 6,732 6,732

135 226 292 215 6 230 8 3 2 6 335 365 291 169 15 5,194 5,194

153 216 165 292 188 330 458 290 5,310 5,310

134 226 292 215 230 3 2 308 365 286 169 6,123 6,123

193

Other accounts receivable from related parties Major Shareholder PTT Plc. Subsidiaries Bangkok Polyethylene Plc. Bio Creation Co., Ltd. PTT Chemical International (Asia Pacific ROH) Ltd. PTT Polyethylene Co., Ltd. PTT Maintenance and Engineering Co., Ltd. TOC Glycol Co., Ltd. Thai Fatty Alcohol Co., Ltd. Thai Ethanolamine Co., Ltd. Thai Oleochemicals Co., Ltd. Thai Tank Terminal Limited NPC Safety and Environmental Service Co., Ltd. PTT Chemical International Pte. Ltd. Jointly - controlled entity Thai Ethoxylate Co., Ltd. Associates PTT Utility Co., Ltd. PTT Polymer Marketing Co., Ltd. PTT Phenol Co., Ltd. PTT ICT Solutions Co., Ltd. HMC Polymers Co., Ltd. Less allowance for doubtful accounts Net

Bad and doubtful debts expense for the year

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 1

40 2

5 1

7 59 2 22 3 15 19 3

2 22 1 8 6 19 1

8 2

8 -

4 876 2 12 1 896 896

3 718 1 23 749 749

4 2 12 1 207 207

3 2 22 106 106

194

Loans to related parties

Interest rate 2010

Short-term loans

2009

Consolidated financial statements

Separate financial statements

2010

2009

(% per annum)

2009

(in million Baht)

Subsidiaries Bangkok Polyethylene Plc. PTT Polyethylene Co., Ltd. Thai Oleochemicals Co., Ltd. Thai Ethanolamines Co., Ltd. NPC Safety and Environmental Service Co., Ltd.

4.81-4.89

4.93-5.14

500

310

4.81-4.89

4.93-5.14

3,200

600

4.81-4.89

4.93-5.14

8,060

8,580

4.81-4.89

4.93-5.14

1,397

1,497

4.81-4.89

4.93-5.14

290

13,447

11,277

Less allowance for doubtful accounts

Short-term loans to related parties, net

13,447

11,277

Loans to related parties

Interest rate 2010

Long-term loans Subsidiaries Bangkok Polyethylene Plc. PTT Polyethylene Co., Ltd.

2009

Consolidated financial statements

Separate financial statements

2010

2009

(% per annum)

2009

(in million Baht)

4.81-4.89

4.93-5.14

4,240

4,040

4.81-4.89

4.93-5.14

21,987 26,227 (5,546) 20,681

25,300 29,340 (3,313) 26,027

Less allowance for doubtful accounts Total loans to related parties, net

13,447 5,546 20,681 39,674 39,674

11,277 3,313 26,027 40,617 40,617

Bad and doubtful debts expenses for the year

Less current portion due within one year Less allowance for doubtful accounts Long-term loans to related parties, net Summary of loans to related parties Short-term loans Current portion due within one year Long-term loans

195

Movements during the years ended 31 December 2010 and 2009 of loans to related parties were as follows: Loans to related parties

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht)

Short-term loans Subsidiaries At 1 January Increase Decrease At 31 December

11,277 3,390 (1,220) 13,447

7,995 4,402 (1,120) 11,277

Long-term loans Subsidiaries At 1 January Increase Due within one year Decrease At 31 December

29,340 200 (5,546) (3,313) 20,681

21,678 7,662 (3,313) 26,027

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) Investments in subsidiaries (Note 8)

40,962

38,392

Investments in jointly-controlled entity (Note 8)

210

8,370

8,588

8,478

Investments in associates (Note 9) Advanced for construction in progress to related party

Subsidiary PTT Maintenance and Engineering Co., Ltd.

9,735

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht)

196

Trade accounts payable to related parties

Major Shareholder PTT Plc. Subsidiary PTT Polyethylene Co., Ltd. Associate PTT Utility Co.,Ltd. Other related parties Bangkok Synthetics Co., Ltd. Bangkok Industrial Gas Co., Ltd. PTT Aromatics and Refining Plc. Star Petroleum Refining Co., Ltd. Siam Styrene Monomer Co., Ltd. IRPC Plc. Thai Industrial Gas Plc. PTT International Trading Pte. Ltd. Total Other accounts payable to related parties

Major Shareholder PTT Plc. Subsidiaries Bangkok Polyethylene Plc. Bio Creation Co., Ltd. PTT Polyethylene Co., Ltd. PTT Maintenance and Engineering Co., Ltd. TOC Glycol Co., Ltd. Thai Ethanolamine Co., Ltd. Thai Oleochemicals Co., Ltd. Thai Tank Terminal Limited NPC Safety and Environmental Service Co., Ltd Associates Vinythai Plc. PTT Utility Co., Ltd. PTT ICT Solutions Co., Ltd. Eastern Fluid Transport Co., Ltd. Other related parties Bangkok Synthetics Co., Ltd. Thai Polypropylene Co., Ltd. PTT Polymer Logistics Co., Ltd. Dhipaya Insurance Plc. Thai Plastic and Chemical Plc. Thai Industrial Gas Plc. Bangkok Industrial Gas Co., Ltd. IRPC Plc. Energy Complex Co., Ltd. Total

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 4,417

4,076

3,432

4,076

492

25 979 48 17 170 1 47 5,712

13 6 41 1 4,137

7 979 48 149 5,115

8 5 4,089

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 173

34 2 2 22 9 2 11 1

14 1 80 7 1 5 2

3 363 43 2

1 300 59 4

1 1 43 2

1 1 59 2

71 32 1 8 18 8 722

61 4 59 13 1 7 2 11 550

4 11 1 6 10 8 232

3 2 13 1 5 10 222

197

Payables to contractor - related parties

Major Shareholder PTT Plc. Subsidiary PTT Maintenance and Engineering Co., Ltd. Associates PTT Utility Co., Ltd. PTT ICT Solutions Co., Ltd. Other related party Bangkok Industrial Gas Co., Ltd. Total Retention payable - related party

Subsidiary PTT Maintenance and Engineering Co., Ltd.

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 1

156

4 2

1 7

158

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) -

Significant agreements with related parties As at 31 December 2010, the Company has significant agreements with related parties as follows: Olefins Sales Agreements The Company has the Olefins Sales Agreement with five downstream petrochemical companies that guarantee to purchase Olefins products not less than the volume specified in the agreement with selling price based on prices prevailing in the world market. The agreement is for the period of 15 years, commencing from the date as specified in the agreement and will expire in December 2011. The Company has 5 Ethylene Sales Agreements with certain related parties. Selling prices are determined based on prices prevailing in the world market, Polyethylene price in the world market and Ethane price. These agreements are for the periods from 7 years to 15 years, commencing from the effective date specified in each agreement and will expire in July 2012, in December 2016 (for 2 agreements), in August 2021 and in May 2022. The Company has 3 Propylene Sales Agreements with certain related parties. Selling prices are determined based on Polypropylene price in the world market, Polypropylene and Propylene prices in the world market. These agreements are for the periods from 12 years to 15 years, commencing from the effective date specified in each agreement and will expire in March 2011, in December 2016 and in December 2024. By Product Sales Agreements The Company has 2 Hidrogen Sales Agreements with certain related parties. Selling prices in each agreement are determined based on Natural Gas price for the industry. These agreements are for the periods from 3 years to 15 years, commencing from the date as specified in each agreement and will expire in November 2012 and in December 2023. The Company has the Pyrolysis Gasoline Sales Agreement with a related party that guarantee to purchase such products not less than the volume specified in the agreement with selling price based on Aromatic

198

product price prevailing in the world market. The agreement is for the period of 15 years, commencing from the date as specified in the agreement and will expire in November 2011. However, the agreement are automatically renewable with the one year advance notice by either party. The Company has the Supply Mixed C4 Agreement with a related party that guarantee to purchase the product not less than the volume specified in the agreement with selling price based on Naphtha price prevailing in the world market. The agreement is for the period of 15 years, commencing from the date as specified in the agreement and will expire in May 2010. However, the agreement is still effective until either party give a minimum of four year advance notice in order to terminate the agreement. The Company is in process of renewing the contract. The Company has the Tail Gas Supply Agreement with a related party. Selling prices are determined based on Natural Gas price for the industry. The agreement is for the period of 15 years, commencing from the date as specified in the agreement and will expire in July 2022.

Utilities and Other Services Agreements The Company has 3 Power Supply Agreements with certain related parties. Selling prices in these agreements are determined based on pricing from Provincial Electricity Authority. These agreements are for the periods from 5 years to 15 years, commencing from the date as specified in each agreement and will expire in July 2012, in September 2014 and in December 2017. The agreement with the term of 5 years can be renewed for 5 years. The Company has 5 Utilities Agreements covering electricity, steam and demineralised water with certain related parties. These agreements are for the periods from 10 years to 15 years, commencing from the date as specified in each agreement. Three agreements will expire in December 2016 and others will expire in December 2021 and July 2024. The subsidiaries have 3 Utilities Agreements covering steam, electricity and water with a related party. These agreements are for the period of 15 years, commencing from the date as specified in each agreement and will expire in May 2021, in December 2021and in June 2023. The Company has 2 Product Transportation Agreements with certain related parties. These agreements are for the periods from 3 years to 10 years, commencing from the date as specified in each agreement and will expire in December 2012, and May 2015. The agreement with the term of 3 years is renewable for another period of 3 years, not exceeding total periods of 15 years. The Company has 2 Nitrogen Supply Agreements with certain related parties. Selling prices are determined based on prices prevailing in the market. These agreements are for the periods from 8 years to 10 years, commencing from the date as specified in each agreement and will expire in October 2014 and in June 2016. These agreements can be renewed or terminated by either party providing not less than 2 yearsâ&#x20AC;&#x2122; prior written notice to the counterparty and the other not less than 12 monthsâ&#x20AC;&#x2122; prior written notice to the counterparty.

Feedstock and Fuel Gas Sales Agreements The Company has the LPG Supply Agreement with a related party. Selling prices are determined based on Polypropylene. These agreements are for the periods of 15 years, commencing from the date as specified in each agreement and will expire in May 2021. The Company has the Natural Gas Supply Agreement with a related party. Selling prices are determined based on fuel oil price. The agreement is for the period of 20 years, commencing from the

199

date as specified in the agreement and will expire in December 2019. The agreement is renewable for the period of 4 years, by providing not less than 1 yearâ&#x20AC;&#x2122; prior written notice to the counterparty. The Company has the Natural Gas Liquid Agreement with a related party. Selling prices are determined based on the standard price of Naphtha in the region. The agreement is for the period of 15 years, commencing from the date as specified in the agreement and will expire in May 2021. The agreement is renewable for the period of 5 years with the agreement of both parties. The Company has the Light Naphtha and Raffinate Sales Agreement with a related party. Selling prices are determined based on the standard price of Naphtha in the region. The agreement commences on 1 January 1999. Subsequently, on 1 June 1999, the Company had another agreement to transfer the right and commitment under the Light Naphtha and Raffinate Sales Agreement to another related party. The agreement will be effective in November 2012. The Company has 2 Ethane, Propane and LPG Supply Agreements with a related party. Selling prices in an agreement are determined based on Polyethylene and Polypropylene price and another agreement is determined based on Polyethylene price. These agreements are for the periods of 12 years and 15 years, commencing from the date as specified in each agreement and will expire in December 2011 and in July 2020. All agreements are renewable for the period of 5 years with the agreement of both parties. The Company has 2 LPG Supply Agreements with certain related parties. Selling prices are determined based on Polypropylene. These agreements are for the periods of 1 year, commencing from the date as specified in each agreement and will expire in May 2011 and November 2011. The agreements are automatically renewable for one year or more with the agreement of both parties.

Polyethylene Sales Agreement The Company has the Polyethylene Sales Agreement with a relate party to entirely sell all Polyethylene to the related party for distributing to the customers. Under the agreement, the Polyethylene pricing structure is changed to link to the Polyethylene product price, which the Company sells to ended customers, adjusted by the appropriate marketing expenses for fairness to both parties. The agreement is for the period of 15 years, commencing from the effective date as specified in the agreement and will expire in January 2022. Loan Agreements The Company has an unsecured loan agreement with a related party with the credit limit of Baht 26,700 million. The loan agreement consists of Baht 25,300 million of long-term loan and Baht 1,400 million of short-term loan. The loan bears interest at the rate of the Companyâ&#x20AC;&#x2122;s average cost of fund. This long-term loan is repayable in equally quarter instalments, commencing from June 2010 and within 5 years. Additionally, the Company provides temporary working capital (due is less than 1 year) for the amount of Bath 3,500 million to such related party. The Company entered into an unsecured loan agreement with a related party with the credit limit of Baht 5,105 million. The loan agreement consists of Baht 4,605 million of long-term loan and Baht 500 million of short-term loan. The loan bears interest at the rate of the Companyâ&#x20AC;&#x2122;s average cost of fund. This long-term loan is repayable in semi-annual instalments, commencing from June 2011 and within 5 years.

200

The Company received unsecured promissory notes from three related parties for the total amount of Baht 9,747 million. The interest rate is at the rate of the Companyâ&#x20AC;&#x2122;s average cost of fund. The promissory will be expired in 1 month but renewable. Service Agreements The Company has All Quality Guarantee, Machinery and Equipment Checking with a related party, for the period of 3 years, which will expire in February 2011. The Company has Share Service Agreements with its 9 subsidiaries for the provision of general services. Service charges will be reviewed and agreed in the fourth quarter of each year. These agreements are effective from 1 July 2008 and may be terminated by either party with 3 months written notice. The Company has two Emergency Control and Management Agreement with a related party for the provision of services relating to consulting, training for safety, health and environmental and establishment of emergency control centre. The agreement is for the period of 3 years and will expire in December 2011. The Company has four Security Service and Fire Protection Agreement with a related party. The agreements are to provide security and fire protection service to asset, employee and visitor in the location of the Company. The agreement is for the period of 2 years and will be expired in September 2012. The Company has the Service Agreement with a related party for the provision of general services in the building and rental space. The agreement is for the period of 3 years and will expire in September 2012 and is renewable for another period of 3 years with the service rate and committed conditions as stipulated in the agreement. The Company has the Lab Analysis Service Agreement with a related party. The agreement is for the period of 1 year and is automatically renewable and may be terminated by either party with 1 month prior written notice. Office Rental Agreement The Company has the Office Rental Agreement with a related party. The agreement is for the period of 3 years and will expire in September 2012 and is renewable for another period of 3 years with the office rental rate of Baht 86 million per annum and has committed conditions as stipulated in the agreement. 5

Cash and cash equivalents

Cash on hand Cash at banks - current accounts Cash at banks - savings accounts Fixed deposit Highly liquid short-term investments Total

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 1 537 469 (4) (2) 1,941 2,026 562 469 120 570 1 12,239 7,985 11,075 7,300 14,838 11,050 11,634 7,767

201

The currency denomination of cash and cash equivalents as at 31 December was as follows: Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 14,122 10,058 11,634 7,767 145 151 187 404 238 283 146 154 14,838 11,050 11,634 7,767

Thai Baht (THB) United States Dollars (USD) Euro (EUR) Ringgit (MYR) Others Total 6

Trade accounts receivable and notes receivable

Note Related parties Other parties

Less allowance for doubtful accounts Total Bad and doubtful debts expenses for the year

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 6,732

5,194

5,310

6,123

4,692

4,489

379

234

11,424

9,683

5,689

6,357

(17)

(15)

(2)

11,407

9,668

5,687

6,355

Aging analyses for trade accounts receivable were as follows: Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) Related parties Within credit terms Overdue: Less than 3 months 3 - 6 months 6 - 12 months Over 12 months Less allowance for doubtful accounts Net

6,712

5,149

5,310

6,118

20 6,732 6,732

45 5,194 5,194

5,310 5,310

5 6,123 6,123

202

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) Other parties Within credit terms Overdue: Less than 3 months 3 - 6 months 6 - 12 months Over 12 months Less allowance for doubtful accounts Net Total

4,293

4,007

373

231

378 7 7 7 4,692 (17) 4,675 11,407

467 3 6 6 4,489 (15) 4,474 9,668

2 2 2 379 (2) 377 5,687

1 2 234 (2) 232 6,355

The normal credit term granted by the Group/Company ranges from 15 days to 90 days. The currency denomination of trade accounts receivable as at 31 December was as follows:

Thai Baht (THB) United States Dollars (USD) Euro (EUR) Others Total 7

Consolidated Separate financial statements financial statements 2010 2009 2009 2010 (in million Baht) 8,974 7,053 5,588 6,186 1,461 1,591 101 171 744 628 245 411 11,424 9,683 5,689 6,357

Inventories Consolidated Separate financial statements financial statements 2010 2009 2009 2010 (in million Baht) Finished goods Work in progress Raw materials Factory supplies Spare parts Goods in transit Less allowance for decline in value allowance for obsolescence Net

3,582 1,429 2,067 632 3,222 243 11,175 (53) (38) 11,084

2,707 947 1,702 509 2,650 117 8,632 (95) 8,537

1,334 911 153 1,964 100 4,462 4,462

865 1,070 213 2,185 4,333 4,333

203

Consolidated Separate financial statements financial statements 2009 2010 2009 2010 (in million Baht) Inventories recognised as an expense in â&#x20AC;&#x2DC;cost of sales of goodsâ&#x20AC;&#x2122;: - Cost - Reversal of write - down

- Net total 8

83,507 (15)

70,213 (785)

51,289 -

48,943 (283)

83,492

69,428

51,289

48,660

Investments in subsidiaries and jointly-controlled entity

Separate financial statements 2009 2010 (in million Baht) Subsidiaries At 1 January Acquisitions Allowance for impairment Disposals At 31 December

38,392 2,570 40,962

33,753 4,639 38,392

Jointly-controlled entity At 1 January Acquisitions Allowance for impairment Disposals At 31 December

210 210

Total At 1 January Acquisitions Allowance for impairment Disposals At 31 December

38,602 2,570 41,172

33,963 4,639 38,602

100

and Environmental Service Co., Ltd.

100

Co., Ltd. Thai Oleochemicals Co., Ltd.

PTT Polyethylene Co., Ltd. NPC Safety

100

Co., Ltd. Bio Creation

Thai Ethanolamine

Co., Ltd.

Subsidiaries Bangkok Polyethylene Plc. TOC Glycol

Ownership interest 2010 2009 (%)

165

22,000

2,400

280

900

5,395

1,700

165

19,600

2,400

280

900

5,395

1,700

Paid-up capital 2010 2009

165

22,600

2,400

280

900

5,395

3,664

165

20,200

2,400

280

900

5,395

3,664

Cost method 2010 2009

Impairment 2010 2009

165

22,600

2,400

280

900

5,395

3,664

165

20,200

2,400

280

900

5,395

3,664

At cost - net 2010 2009 (in million Baht)

Separate financial statements

Market price of listed securities 2010 2009

3,561

341

Dividend income for the years ended 2010 2009

Investments in subsidiaries and jointly-controlled entities as at 31 December 2010 and 2009, and dividend income from those investments for the years then ended were as follows:

204

Total

entity Thai Ethoxylate Co., Ltd.

Jointly-controlled

Thai Tank Terminal Limited

100 75

and Engineering Co., Ltd.

Co., Ltd. PTT Maintenance

Pte. Ltd. Bio Spectrum

Subsidiaries PTT Chemical International

100 -

Ownership interest 2010 2009 (%)

420

900

137

4,961 131

420

900

137

4,847 -

Paid-up capital 2010 2009

41,172

38,602

210 210

459 38,392

459

4,847 -

40,962

4,961 56

Cost method 2010 2009

Impairment 2010 2009

41,172

210

40,962

459

4,961 56

38,602

210

38,392

459

4,847 -

At cost - net 2010 2009 (in million Baht)

Separate financial statements

Market price of listed securities 2010 2009

4,066

463

849

824

483

Dividend income for the years ended 2010 2009

205

2010 Thai Ethoxylate Co., Ltd.

2009 Thai Ethoxylate Co., Ltd.

(%)

Ownership

523

714

Current assets

245

233

Noncurrent assets

768

947

Total assets

Noncurrent liabilities

226

294

122

(in million Baht)

Current liabilities

348

390

Total liabilities

1,183

1,521

Total revenues

1,072

1,385

Total expenses

111

136

Net Profit

The following summarised financial information on jointly-controlled entity which has been accounted for using the equity method represents the Groupâ&#x20AC;&#x2122;s share:

206

207

Increase of investments in subsidiaries At the meeting for incorporate of Bio Spectrum Co., Ltd. held on 9 November 2010, the meeting approved to issue common share 10,000 shares at Baht 100 par value, totalling Baht 1 million which the subsidiary called and recieved in cash of Baht 25 par value , totalling Baht 0.25 million. At the Extraordinary meeting of shareholders of Bio Spectrum Co., Ltd. held on 29 November 2010, the Shareholders approved to increase the registered share capital from Baht 1 million (divided into 10,000 shares at Baht 100 par value) to Baht 300 million (divided into 300 million shares at Baht 100 par value) by issuing new common shares of Baht 299 million (divided into 2.99 million shares at Baht 100 par value) which shall be allotted into two portions. The first portion is divided into 0.75 million shares at Baht 100 per share, and will be fully paid-up, in consideration of transferring the Production Technology. The remaining portion is divided into 2.24 million shares at Baht 100 per share, will be called and received in cash of Baht 25 per share, totalling Baht 56 million in 2010. Increase in share capital At the Annual General Meeting of the shareholders of PTT Polyethylene Co., Ltd. held on 8 February 2010, the shareholders approved to increase the registered share capital from Baht 19,600 million (divided into 196 million shares at Baht 100 par value) to Baht 22,000 million (divided into 220 million shares at Baht 100 par value) by issuing new common shares of Baht 2,400 million (divided into 24 million shares at Baht 100 par value) of which such subsidiary called and received in full amount in the first quarter of the year 2010. At the Board of Directors meeting of PTT International Private Co., Ltd. held on 20 November 2009, the Board approved to increase the registered share capital from SGD 205.2 million (divided into 205.2 million shares at SGD 1 par value) to SGD 219.2 million (divided into 219.2 million shares at SGD 1 par value) by issuing new common shares of SGD 14 million (divided into 14 million shares at SGD 1 par value) of which such company called and received of SGD 0.25 per share, totalling SGD 3.5 million in 2009 and received of SGD 0.35 per share, totalling SGD 4.9 million in the third quarter of the year 2010. Dividends At the Board of Directors’ meeting of TOC Glycol Co., Ltd. held on 29 November 2010, the Board approved the appropriation of dividends of Baht 18.00 per share, amounting to Baht 971.10 million. The dividend was paid to shareholders in November 2010. At the Board of Directors’ meeting of TOC Glycol Co., Ltd. held on 26 August 2010, the Board approved the appropriation of dividends of Baht 19.00 per share, amounting to Baht 1,025.05 million. The dividend was paid to shareholders in August 2010. At the Board of Directors’ meeting of TOC Glycol Co., Ltd. held on 25 May 2010, the Board approved the appropriation of dividends of Baht 15.00 per share, amounting to Baht 809.25 million. The dividend was paid to shareholders in May 2010. At the Annual General Meeting of the shareholders of PTT Maintenance and Engineering Co., Ltd. held on 28 April 2010, the shareholders approved the appropriation of dividends from the net profit of Baht 34.75 per share, amounting to Baht 69.50 million. The dividend was paid to shareholders in April 2010.

208

At the Annual General Meeting of the shareholders of TOC Glycol Co., Ltd. held on 27 April 2010, the shareholders approved the appropriation of dividends from the net profit after the appropriation to legal reserve of Baht 14.00 per share, amounting to Baht 755.30 million, which was paid to the shareholders in April 2010. At the Annual General Meeting of the shareholders of Thai Tank Terminal Limited held on 23 April 2010, the shareholders approved the appropriation of dividends of Baht 100.98 per share, amounting to Baht 908.83 million. The dividend, amounting to Baht 300 million, was paid to the shareholders in May 2010, and the net balance of dividend, amounting to Baht 608.83 million, was paid to the shareholders in December 2010. At the Board of Directorsâ&#x20AC;&#x2122; meeting of TOC Glycol Co., Ltd. held on 25 December 2009, the Board approved the appropriation of dividends of Baht 14.97 per share, amounting to Baht 807.63 million. The dividend was paid to shareholders during 2009. Also, at the Annual General Meeting of the shareholders of a subsidiary held on 27 April 2009, the shareholders approved to change the appropriation of dividends to Baht 20.39 per share, amounting to Baht 1,100.04 million from Baht 29.04 per share, amounting to 1,566.71 million, which had been approved by the Board of Directors meeting of the subsidiary held on 17 November 2008, resulting in the change in dividend paid in 2009 of Baht 466.67 million. At the annual general meeting of the shareholders of Thai Tank Terminal Ltd. held on 24 April 2009, the shareholders approved the appropriation of dividends from the net profit of Baht 105.30 per share, amounting to Baht 947.72 million. The dividend was paid to shareholders during 2009. At the annual general meeting of the shareholders of Thai Ethoxylate Co., Ltd. held on 29 April 2009, the shareholders approved the appropriation of dividends from the net profit of Baht 12 per share, amounting to Baht 50.40 million. The dividend was paid to shareholders during 2009. 9

Investments in associates Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) At 1 January Share of net profit of investments - equity method Acquisitions Dividend income Allowance for impairment Disposals At 31 December

8,370

8,001

8,478

8,150

1,362 109 (106) 9,735

146 328 (105) 8,370

110 8,588

328 8,478

PTT ICT Solutions Co., Ltd. Total

Co., Ltd.

Fluid Transport

Vinythai Plc. Eastern

Marketing Co., Ltd.

PTT Polymer

Co., Ltd.

PTT Phenol

Co., Ltd.

Associates PTT Utility

Ownership interest 2010 2009 (%)

150

7,111

8,351

6,859

150

7,111

7,985

6,859

Paid-up capital 2010 2009

30 8,588

3,297

2,506

2,744

30 8,478

3,297

2,396

2,744

Cost method 2010 2009

40 9,735

4,008

2,980

2,619

40 8,370

3,717

2,067

2,487

Equity method Impairment 2010 2009 2010 2009 (in million Baht)

Consolidated financial statements

40 9,735

4,008

2,980

2,619

40 8,370

3,717

2,067

2,487

At equity - net 2010 2009

Investments in associates as at 31 December 2010 and 2009, and dividend income from those investments for the years then ended were as follows:

106

104

105

104

Dividend income 2010 2009

209

Total

PTT ICT Solutions Co., Ltd.

Ltd.

Transport Co.,

Co., Ltd. Vinythai Plc. Eastern Fluid

PTT Phenol Co., Ltd. PTT Polymer Marketing

Associates PTT Utility Co., Ltd.

25 25

Ownership interest 2010 2009 (%)

150

40 7,111

8,351

6,859

150

40 7,111

7,985

6,859

Paid-up capital 2010 2009

8,588

10 3,297

2,506

2,744

8,478

10 3,297

2,396

2,744

Cost method 2010 2009

8,588

10 3,297

2,506

2,744

8,478

10 3,297

2,396

2,744

Impairment At cost - net 2010 2009 2010 2009 (in million Baht)

Separate financial statements

Market price of listed securities 2010 2009

106

104

105

104

Dividend income 2010 2009

210

40 30 25 25 23 20

2010 PTT Utility Co., Ltd. PTT Phenol Co., Ltd. PTT Polymer Marketing Co., Ltd. Vinythai Plc. Eastern Fluid Transport Co., Ltd. PTT ICT Solutions Co., Ltd. Total

2009 PTT Utility Co., Ltd. PTT Phenol Co., Ltd. PTT Polymer Marketing Co., Ltd. Vinythai Plc. Eastern Fluid Transport Co., Ltd. PTT ICT Solutions Co., Ltd. Total

Ownership (%)

8,398 5,712 749 3,823 18 176 18,876

9,437 6,014 1,240 4,153 21 264 21,129

Total assets

5,911 3,644 703 294 6 136 10,694

6,818 3,034 1,166 341 7 225 11,591

2,460 2,189 6,518 2,980 18 171 14,336

3,538 4,027 9,825 3,272 30 236 20,928

Total Total revenues liabilities (in million Baht)

9 (97) 17 246 3 (6) 172

132 802 29 386 4 (10) 1,343

Net profit/ (loss)

The following summarised financial information on associates which have been accounted for using the equity method is not adjusted for the percentage of ownership held by the Group:

211

212

Other long-term investments Consolidated Separate financial statements financial statements 2009 2010 2009 2010 (in million Baht) Other long-term investments Other non marketable equity securities Alliance Petrochemical Investment (Singapore) Pte. Ltd. (16.67% Shareholding) Guangzhou Keylink Chemical Co., Ltd. (15% Shareholding)

290

34 324

33 323

290

The currency denomination of other long-term investments as at 31 December was as follows:

Singapore Dollars (SGD) Hong Kong Dollars (HKD) Total

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 290 290 290 290 34 33 324 323 290 290

Finance costs capitalised during 2010 (note 26) Rates of interest capitalised during 2010 (% per annum)

Finance costs capitalised during 2009 (note 26) Rates of interest capitalised during 2009 (% per annum) -

(699) 117,212

(11) 3,358

86,692 333 31,080 (194)

3,266 103 -

610

(86)

83,720 145 2,474 (257)

Plant, machinery and equipment

3,292 26 57 (23)

Land

Property, plant and equipment

Cost At 1 January 2009 Additions Transfers Disposals Effect of movement in exchange rates At 31 December 2009 and 1 January 2010 Additions Transfers Disposals Effect of movement in exchange rates At 31 December 2010

1,342

1,154 134 67 (13)

667 230 262 (5)

Factory equipment and tools

(308) 7,724

7,334 8 708 (18)

(3)

121 1,015

833 61 -

213 1 (63) (58)

(18) 1,462

1,277 160 73 (30)

Consolidated financial statements Furniture, fixtures Buildings Leasehold and improveimproveequipment ment ment Buildings (in million Baht) 6,212 447 54 1,201 17 1 107 1,108 389 159 (10) (4) (25)

8 784

659 125 112 (120)

(7)

531 71 98 (34)

Vehicles

3-4

(8) 23,883

53,288 3,532 (32,431) (498)

(106)

43,217 15,148 (4,971) -

Assets under construction

3-4

(915) 156,873

154,716 4,396 (393) (931)

412

139,341 15,745 (434) (348)

Total

213

538 (42,007)

49,044 49,044

3,292 3,292

3,358 3,358

75,205 75,205

48,216 48,216

(733)

(38,476) (4,183) 119 (5)

3,266 3,266

(610) (138) 12 3

(171)

608 1 609

543 1 544

223 223

(34,676) (3,770) 103 38

(444) (91) 5 (80)

Factory equipment and tools

4,495 4,495

4,261 4,261

3,380 3,380

160 (3,229)

(3,073) (320) 13 (9)

(2,832) (281) 40

Buildings

681 681

567 567

212 212

(19) (334)

(266) (50) 1

88 88

152 152

14 14

(5)

(61) (14) 46 24

Leasehold Buildings improveimprovement ment (in million Baht) (235) (40) (33) (12) 3 (1) (9)

399 93 492

376 77 453

416 75 491

10 (970)

(824) (186) 28 2

(9)

(710) (158) 24 29

Furniture, fixtures and equipment

Consolidated financial statements

193 236 429

91 225 316

25 250 275

(6) (355)

(343) (122) 117 (1)

(256) (106) 32 (15)

Vehicles

23,883 23,883

53,288 53,288

43,217 43,217

Assets under construction

The gross amount of the Groupâ&#x20AC;&#x2122;s fully depreciated property and equipment that was still in use as at 31 December 2010 amounted to Baht 10,010 million (2009: Baht 10,084 million).

At 31 December 2010 Owned assets Assets under finance leases

At 31 December 2009 and 1 January 2010 Owned assets Assets under finance leases

Accumulated depreciation At 1 January 2009 Depreciation charge for the year Disposals Transfers Effect of movement in exchange rates At 31 December 2009 and 1 January 2010 Depreciation charge for the year Disposals Transfers Effect of movement in exchange rates At 31 December 2010 Net book value At 1 January 2009 Owned assets Assets under finance leases

Land

Plant, machinery and equipment

108,910 330 109,240

110,760 303 111,063

99,823 325 100,148

683 (47,633)

(43,653) (5,013) 335 15

(178)

(39,193) (4,451) 167 2

Total

214

Cost At 1 January 2009 Additions Transfers Disposals At 31 December 2009 and 1 January 2010 Additions Transfers Disposals At 31 December 2010

51,647 83 2,370 (195)

53,905 166 2,739 (159) 56,651

1,721 33 -

1,754 1,754

Land

Plant, machinery and equipment

682 76 31 (3) 786

566 185 (64) (5)

Factory equipment and tools

2,164 2 114 (10) 2,270

1,864 300 -

Buildings

446 16 462

376 1 71 (2) 79 64 (58) 85

49 30 -

Leasehold Buildings improveimprovement ment (in million Baht)

Separate financial statements

787 100 55 (20) 922

815 60 (86) (2)

Furniture, fixtures and equipment

401 93 1 (90) 405

365 23 36 (23)

Vehicles

7,780 2,820 (3,157) (1) 7,442

5,829 4,858 (2,907) -

Assets under construction

67,998 3,257 (137) (341) 70,777

63,232 5,210 (217) (227)

Total

215

27,538 27,538

27,486 27,486

1,721 1,721

1,754 1,754 27,988 27,988

(2,336) 92 (28,663)

1,754 1,754

(24,109) (2,262) (48) (26,419)

308 308

285 285

153 153

(83) 2 (478)

(413) (63) 79 (397)

Factory equipment and tools

1,576 1,576

1,565 1,565

1,348 1,348

(108) 13 (694)

(516) (97) 14 (599)

Buildings

219 219

221 221

164 164

(18) (243)

(212) (16) 3 (225)

81 81

23 23

11 11

(5) 57 (4)

(38) (7) (11) (56)

Leasehold Buildings improveimprovement ment (in million Baht)

326 326

245 57 302

356 57 413

(130) 19 (596)

(402) (114) 31 (485)

Furniture, fixtures and equipment

Separate financial statements

16 166 182

19 139 158

4 178 182

(69) 89 (223)

(183) (69) 9 (243) -

7,442 7,442

7,780 7,780

5,829 5,829

Assets under Vehicles construction

The gross amount of the Companyâ&#x20AC;&#x2122;s fully depreciated property and equipment that was still in use as at 31 December 2010 amounted to Baht 1,492 million (2009: Baht 1,012 million).

At 31 December 2010 Owned assets Assets under finance leases

Accumulated depreciation At 1 January 2009 Depreciation charge for the year Disposals At 31 December 2009 and 1 January 2010 Depreciation charge for the year Disposals At 31 December 2010 Net book value At 1 January 2009 Owned assets Assets under finance leases At 31 December 2009 and 1 January 2010 Owned assets Assets under finance leases

Land

Plant, machinery and equipment

39,710 166 39,876

39,378 196 39,574

37,124 235 37,359

(2,749) 272 (30,901)

(25,873) (2,628) 77 (28,424)

Total

216

(198) (69) (2) 15 (254) (86) (9) (349) 200 318 293

(2,142) (130) 5 63 (2,204) (132) 302 (2,034) 562 392 1,874

Accumulated amortisation At 1 January 2009 Amortisation charge for the year Transfers Effect of movement in exchange rates Loss from impairment At 31 December 2009 and 1 January 2010 Amortisation charge for the year Transfers Effect of movement in exchange rates

Loss from impairment At 31 December 2010 Net book value

At 1 January 2009 At 31 December 2009 and 1 January 2010 At 31 December 2010

398 22 152 572 18 64 (12) 642

Software Licences

2,704 1 (5) (104) 2,596 18 1,579 (285) 3,908

License for production process

Cost At 1 January 2009 Additions Transfers Effect of movement in exchange rates At 31 December 2009 and 1 January 2010 Additions Transfers Effect of movement in exchange rates At 31 December 2010

Intangible assets

13 68 84

(32)

(12) (12) (24) (8) -

96 88 81

(34)

(19) (8) (27) (7) -

27 21 62

(43)

(46) (9) 6 (49) (18) 11 13

Consolidated financial statements Right for Right to use Right to use other Pipeline Jetty operation (in million Baht) 25 115 73 67 4 (7) 92 115 70 24 45 (10) 116 115 105

3,021 3,021 3,015

(390)

(390) (3) (393) 3

3,411 3 3,414 (9) 3,405

Goodwill

1,695 2,612 1,218

1,695 628 (4) 293 2,612 233 (1,627) 1,218

Intangible in progress

5,614 6,520 6,627

(2,882)

(2,807) (228) 3 81 (2,951) (251) 304 16

8,421 718 147 185 9,471 269 85 (316) 9,509

Total

217

218

License for production Cost At 1 January 2009 Additions Transfers At 31 December 2009 and 1 January 2010 Additions Transfers At 31 December 2010 Accumulated amortisation At 1 January 2009 Amortisation charge for the year At 31 December 2009 and 1 January 2010 Amortisation charge for the year At 31 December 2010 Net book value At 1 January 2009 At 31 December 2009 and 1 January 2010 At 31 December 2010

Separate financial statements Right for other Intangible Software operation in progress licences

Total

680 -

271 10 144

6 218 (4)

957 228 144

680 680

425 44 469

4 99 (29) 74

220 (2) 218

1,329 143 (31) 1,441

(355) (57)

(144) (43)

(1)

(499) (101)

(412) (57) (469)

(187) (54) (241)

(1) (1) (2)

(600) (112) (712)

325

127

458

268 211

238 228

3 72

220 218

729 729

219

Deferred tax Deferred tax assets and liabilities determined after appropriate offsetting are included in the balance sheets as follows: Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 294 132 5 3 (1,081) (882) (886) (720) (787) (750) (881) (717)

Deferred tax assets Deferred tax liabilities Net

Movements in deferred tax assets and liabilities during the year were as follows:

At 1 January 2010 Deferred tax assets Allowance for decline in value of inventories Loss carryforward Others Total

2 53 77 132

Consolidated financial statements (Charged) / credited to: Statement Acquisition of income of Exchange Equity subsidiary differences (note 27) (in million Baht)

2 172 174

At 31 December 2010

(12) (12)

4 53 237 294

Deferred tax liabilities Depreciation and Amortisation (Depreciation gap) Finance lease assets Net gain on remeasurement to fair value of interest rate swap contracts Others Total

(852) (19)

(136) (2)

(988) (21)

(9) (2) (882)

(49) (14) (201)

2 2

(58) (14) (1,081)

Net

(750)

(27)

(10)

(787)

220

At 1 January 2009 Deferred tax assets Net loss on remeasurement to fair value of cross currency interest rate swap contracts Allowance for decline in value of inventories Loss carryforward Others Total Deferred tax liabilities Depreciation and amortization (Depreciation gap) Finance lease assets Net gain on remeasurement to fair value of interest rate swap contracts Others Total Net

Consolidated financial statements (Charged) / credited to: Acquisition Statement Exchange of of income differences Equity subsidiary (note 27) (in million Baht)

At 31 December 2009

(48)

119 30 197

(117) 53 47 (65)

2 53 77 132

(709) (22)

(143) 3

(852) (19)

(12) (7) (750) (553)

3 (6) (143) (208)

(1) (1) (1)

12 12 12

(9) (2) (882) (750)

Separate financial statements (Charged) / credited to: Statement At 1 At 31 of income January December (note 27) Equity 2010 2010 (in million Baht) Deferred tax assets Allowance for decline in value of inventories Others Total

3 3

2 2

2 3 5

221

Separate financial statements (Charged) / credited to: Statement At 1 At 31 of income January December Equity (note 27) 2010 2010 (in million Baht) Deferred tax liabilities Depreciation Finance lease assets Net gain on remeasurement to fair value of interest rate swap contracts Total

(695) (16)

(114) (2)

(9) (720)

(50) (166)

(59) (886)

Net

(717)

(164)

(881)

(809) (18)

Separate financial statements (Charged) / credited to: Statement At 31 At 1 of income December January (note 27) Equity 2009 2009 (in million Baht) Deferred tax assets Allowance for decline in value of inventories Net loss on remeasurement to fair value of cross currency interest rate swap Others Total

(72)

38 3 113

(38) (110)

3 3

Deferred tax liabilities Depreciation Finance lease assets Net gain on remeasurement to fair value of interest rate swap contracts Total

(616) (19)

(79) 3

(695) (16)

(13) (648)

4 (72)

(9) (720)

Net

(535)

(182)

(717)

222

Interest-bearing liabilities Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) Current Short-term loans from financial institutions unsecured

Current portion of long-term loans from financial institutions secured unsecured Debentures secured Current portion of finance lease liabilities Non-current Long-term loans from financial institutions secured unsecured Debentures secured unsecured

Finance lease liabilities Total

1,460

772

3,107 3,107

21 835 856

1,983 1,983

546 546

400

182 4,749

155 2,183

130 2,113

111 1,057

93 11,162 11,255

122 12,696 12,818

10,708 10,708

11,091 11,091

29,444 29,444

30,399 30,399

29,444 29,444

30,399 30,399

214 40,913 45,662

196 43,413 45,596

146 40,298 42,411

126 41,616 42,673

223

The periods to maturity of interest-bearing liabilities, excluding finance lease liabilities, as at 31 December were as follows: Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) Within one year After one year but within five years After five years Total

4,567 30,008 10,691 45,266

2,028 15,913 27,304 45,245

1,983 29,461 10,691 42,135

946 14,186 27,304 42,436

Secured interest-bearing liabilities following the percentage of ownership held by the group as at 31 December were secured on the following assets:

Consolidated Separate financial statements financial statements 2009 2010 2009 2010 (in million Baht) Machinery and equipment Building Total

122 39 161

12,166 42 12,208

12,000 12,000

Baht

Unsubordinated and unsecured debenture

2,800

2,100

Baht

Unsubordinated and unsecured debenture

2,000

300

Baht

1,000

10,000

1,000

Per share

Currency (in million)

U.S. Unsubordinated and Dollars unsecured debenture, value of debenture is 99.46 percentage of the face value, a time period of 10 years

Secured and installment of principal debenture which condition specified in the agreement

Face Value

Facilities

Years

The principal features of debentures as at 31 December were as follows:

10,019

2,090

2,790

9,059

2,094

2,791

Interest is payable on semi-annual basis and maturity to redeem on June 2015

Interest is payable on semi-annual basis and maturity to redeem on October 2012 Interest is payable on semi-annual basis and maturity to redeem on October 2017

4.58

5.5

Principal and interest are payable on semiannual basis and maturity to redeem on September 2010.

Repayment Terms

2,791

2,094

9,059

2,790

2,090

10,019

Separate Consolidated financial statements financial statements 2010 2009 2010 2009 (in million Baht) 400 400

5.5

Average Baht 6month time deposit rate plus 2.5% p.a.

Rates (%) p.a.

Interest

224

Baht

Unsubordinated and unsecured debenture

Total Less: Current portion Net

Baht

1,942

1,058

4,000

8,000

500

1,000

Per share

Currency (in million)

Unsubordinated and unsecured debenture

Face Value

Facilities

1-3 4-5 6-7

1-3 4-5

Years

5.5

4.9

5.3 6 6.45

5.3 6

5.6

Rates (%) p.a.

Interest

29,444 29,444

1,942

1,058

Interest is payable on semi-annual basis and maturity to redeem on June 2016 Interest is payable on semi-annual basis and maturity to redeem on June 2019

4,000

8,000

Interest is payable on quarterly basis and maturity to redeem on December 2015

Interest is payable on quarterly basis and maturity to redeem on December 2013

Interest is payable on semiannual basis and maturity to redeem on October 2015

Repayment Terms

30,799 (400) 30,399

1,942

1,058

4,000

8,000

29,444 29,444

1,942

1,058

4,000

8,000

30,799 (400) 30,399

1,942

1,058

4,000

8,000

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 500 500 500 500

225

3,000

1,000

7,500

1,500

1,600

Baht

(in million) Years

Baht (Draw-down only permitted until December 2006)

Currency The Company

Facilities

The details of loans as at 31 December were as follows:

The principal will be repayable on semiannual basis, in 9 instalments commencing in October 2011.

The principal will be repayable on semiannual basis, in 11 instalments commencing in September 2007.

Repayment Terms

THBFIX 6 M plus margin

Fixed rate

The principal will be repayable on semiannual basis, in 8 instalments commencing in March 2013.

The principal will be repayable on semiannual basis, in 9 instalments commencing in September 2011.

Highest interest rate for The principal will be repayable on semi6 month-fixed deposit annual basis, in 15 instalments commencing in August 2011. plus margin

Average 3 month â&#x20AC;&#x201C;fixed deposit rate of Government Saving Bank plus margin THBFIX 6 M plus margin

Interest Rates (%) p.a.

Interest

7,500

1,500

7,500

1,500

1,600

1,500

1,000

1,091

1,636

1,091

1,500

7,500

1,000

1,637

Separate Consolidated financial statements financial statements 2010 2009 2010 2009 (in million Baht)

226

1,000

135

41.8

Baht

Euro

Highest interest rate for The principal is repayable on quarterly 3 month-fixed deposit basis, in 11 instalments commencing in plus margin November 2009.

13,674 (856) 12,818

(3,107) 11,255

Less: Current portion

Net

Baht

14,362

1,001

Total

Interest rate for 3 month- The principal is repayable on semi-annual basis, in 14 instalments commencing on 31 fixed deposit plus August 2008. margin

EURIBOR plus margin The principal is repayable on maturity date in February 2011.

834

600

360

The principal is repayable on quarterly basis, in 17 instalments, commencing on June 2008.

THBFIX 3 M plus margin

123

140

THBFIX 3 M plus margin

The principal is repayable on quarterly basis, in 12 instalments, commencing on September 2012.

170

The principal is repayable on quarterly basis, in 12 instalments, commencing on March 2012.

THBFIX 3 M plus margin

Repayment Terms

10,708

(1,983)

12,691

11,091

(546)

11,637

Separate Consolidated financial statements financial statements 2010 2009 2010 2009 (in million Baht)

144

Interest Rates (%) p.a.

Interest

183

140

Baht

Jointly-controlled entities

170

(in million) Years

Subsidiaries Baht

Currency

Facilities

227

228

As at 31 December 2010 the Group and the Company had unutilised credit facilities totalling Baht 22,176 million and 21,230 million, respectively (2009: Baht 7,188 million and Baht 6,300 million, respectively).

The currency denomination of interest-bearing liabilities as at 31 December was as follows: Separate Consolidated financial statements financial statements 2010 2009 2010 2009 (in million Baht) 34,304 33,802 33,352 32,654 9,648 10,620 9,059 10,019 1,710 1,174 45,662 45,596 42,411 42,673

Thai Baht (THB) United States Dollars (USD) Others Total 15

Trade accounts payable

Note

Related parties Other parties Total

Consolidated Separate financial statements financial statements 2009 2010 2009 2010 (in million Baht) 5,712 4,137 5,115 4,089 2,134 1,755 194 229 7,846 5,892 5,309 4,318

The currency denomination of trade accounts payable as at 31 December was as follows: Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 6,503 4,360 5,303 4,076 400 630 6 207 429 414 35 514 488 7,846 5,892 5,309 4,318

Thai Baht (THB) United States Dollars (USD) Euro (EUR) Others Total

Other accounts payable

Note

Related parties Other parties Total

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 722 550 232 222 767 710 431 315 1,489 1,260 663 537

229

Other current liabilities Consolidated Separate financial statements financial statements 2009 2010 2009 2010 (in million Baht) 946 898 595 376 198 174 159 137 763 650 143 121 1,907 1,722 897 634

Accrued interest and other accrued expenses Withholding tax payable Others Total 18

Share capital Par value per share (in Baht) Authorised At 1 January - ordinary shares At 31 December ordinary shares Issued and paid up At 1 January - ordinary shares Issue of new shares At 31 December ordinary shares

2010 Number

2009 Baht Number Baht (million shares / million Baht)

1,519.1

15,191

1,519.1

15,191

1,519.1

15,191

1,519.1

15,191

10 10

1,501.0 14.8

15,010 148

1,496.8 4.2

14,968 42

1,515.8

15,158

1,501.0

15,010

During the year 2010, holders of 14,780,800 warrants under the Companyâ&#x20AC;&#x2122;s Employee Stock Ownership Plan exercised their rights to purchase ordinary shares in the Company at the exercise price of Baht 66.50 per share. The Company registered the increase in the paid-up share capital of Baht 147,808,000 (divided into 14,780,800 shares at Baht 10 par value) with the Ministry of Commerce, increasing the issued and paid-up share capital from Baht 15,010,400,000 (divided into 1,501,040,000 shares at Baht 10 par value) to Baht 15,158,208,000 (divided into 1,515,820,800 shares at Baht 10 par value). The new shares were issued at Baht 66.50 per share, resulting in an increase in share premium of Baht 835,115,200. During the year 2009, holders of 4,210,400 warrants under the Companyâ&#x20AC;&#x2122;s Employee Stock Ownership Plan exercised their rights to purchase ordinary shares in the Company at the exercise price of Baht 66.50 per share. The Company registered the increase in the paid-up share capital of Baht 42,104,000 (divided into 4,210,400 shares at Baht 10 par value) with the Ministry of Commerce, increasing the issued and paid-up share capital from Baht 14,968,296,000 (divided into 1,496,829,600 shares at Baht 10 par value) to Baht 15,010,400,000 (divided into 1,501,400,000 shares at Baht 10 par value). The new shares were issued at Baht 66.50 per share, resulting in an increase in share premium of Baht 237,887,600 As at 31 December 2010, there were 3,294,500 units of unexercised warrants, which will expire on 28 September 2011.

230

Additional paid-in capital and reserves Share premium Section 51 of the Public Companies Act B.E. 2535 requires companies to set aside share subscription monies received in excess of the par value of the shares issued to a reserve account (“share premium”). Share premium is not available for dividend distribution. Legal reserve Section 116 of the Public Companies Act B.E. 2535 requires that a company shall allocate not less than 5% of its annual net profit, less any accumulated losses brought forward, to a reserve account (“legal reserve”), until this account reaches an amount not less than 10% of the registered authorised capital. The legal reserve is not available for dividend distribution. Currency translation differences The currency translation differences account within equity comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as from the translation of liabilities that hedge the Company’s net investment in a foreign operation.

Segment information Segment information is presented in respect of the Group’s business segments. The primary format, business segments, is based on the Group’s management and internal reporting structure. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise interest or dividend-earning assets and revenue, interest-bearing loans, borrowings and expenses, and corporate assets and expenses. Business segments The Group comprises the following main business segments: Segment 1 Segment 2 Segment 3 Segment 4 Segment 5 Segment 6 Segment 7

Olefins / Shared Facilities Polymers EO-Based Performance Oleochemicals Services & Others International Business Dividends income

expenses

the year

Net profit (loss) for

Income tax expense

income tax expenses Finance costs

finance cost and

Profit (loss) before

Total expenses

1,751

487

3,316 1,078

46,301

2,907

43,394

Cost of sales

Selling and administrative

49,617

Total revenues

1,435

Other income

Dividend income

136

48,046

Interest income

Revenue

2010

4,205

1,588

7,071 1,278

44,096

2,422

41,674

51,167

582

490

50,095

2009

Segment 1

Business segment results

4,441

4,895 443

27,586

731

26,855

32,481

1,441

31,013

3,439

187

3,800 174

18,034

543

17,491

21,834

401

133

21,300

2009

Segment 2

2010

3,015

3,059 33

8,597

387

8,210

11,656

11,576

1,059

1,081 20

10,273

351

9,922

11,354

11,293

2009

Segment 3 2010

428 402

(747)

(348) 398

302 9,590

315

9,288

9,242

125

9,115

8,058

7,743

8,486

161

8,322

2009

Segment 4 2010

2,207

751

4,186 1,228

2,478

456

2,022

6,664

766

1,999

3,899

1,904

554

3,324 866

2,884

297

2,587

6,208

579

1,420

4,209

(in million Baht)

2009

Segment 5 2010

121

190 69

15,183

1,971

13,212

15,373

15,336

(115)

(6) 97

13,067

1,885

11,182

13,061

133

12,915

2009

Segment 6 2010 -

4,172

4,172 -

4,172

975

975 -

975

2009

Segment 7 2010

(4,865)

(5,879) (1,014)

(18,022)

(715)

(17,307)

(19,729)

(4,172)

(601)

(2,023)

(17,105)

(3,440)

(15)

(4,029) (574)

(22,585)

(888)

(21,697)

(26,614)

(954)

(916)

(1,846)

(22,898)

2009

Eliminations 2010

10,740

1,388

14,367 2,239

90,181

6,052

84,129

104,548

3,298

163

101,087

2010

Total

7,280

2,329

11,868 2,259

75,359

4,912

70,447

87,227

958

219

86,029

2009

231

Total assets

81,320

1,293

Deferred tax assets

Other non-current assets

646

59,886

143

470

4,686

770

5,281

7,097

Intangible assets

equipment

Property, plant and

parties

Long term loan to related

investment

Other long-term

Investments in associates

controlled entity

Investments in jointly-

subsidiaries

Investments in

Other current assets

receivable

Value-added tax

related party

long-term loans to

Current portion of

related parties

Short-term loans to

Inventories

from related parties

Other accounts receivable

and notes receivable

Trade accounts receivable

Cash and cash equivalent

2010

77,318

328

622

59,053

686

355

3,964

106

5,892

6,309

2009

Segment 1

41,355

159

223

2,474

28,313

369

2,217

349

3,233

4,009

35,017

325

2,068

26,245

1,256

733

1,605

2,294

2009

Segment 2

2010

Business segment financial position

14,466

686

162

10,684

457

1,456

893

15,222

750

188

11,143

161

362

367

1,850

367

2009

Segment 3 2010

9,608

193

6,597

1,138

1,077

468

9,508

112

7,248

170

834

690

394

2009

Segment 4 2010

46,264

124

4,347

20,681

5,546

13,447

504

1,465

46,134

115

4,164

26,027

3,313

11,277

502

548

(in million Baht)

2009

Segment 5 2010

9,721

497

3,483

198

2,451

2,154

906

9,205

107

102

471

3,212

159

2,062

1,954

1,138

2009

Segment 6 2010

51,331

325

9,734

210

41,062

47,505

325

8,478

210

38,492

2009

Segment 7 2010

(85,953)

(3)

2,531

(4,070)

(20,681)

(1)

(210)

(41,062)

(376)

(151)

(5,546)

(13,917)

(246)

(2,298)

(79,658)

(112)

2,943

(1)

(26,027)

(2)

(108)

(210)

(38,492)

(58)

(26)

(3,313)

(11,277)

(150)

(2,825)

2009

Eliminations 2010

168,022

2,147

294

6,627

109,240

324

9,735

1,315

115

11,084

896

11,407

14,838

2010

Total

160,251

1,428

132

6,519

111,064

323

8,370

1,273

1,137

8,538

749

9,668

11,050

2009

232

109

684

Retention payables

Payables to contractors

term loans

Total liabilities

liabilities

Other non-current

Deferred tax liabilities

Debentures

related parties

Long-term loans from

financial institutions

Long-term loans from

Other current liabilities

Income tax payable

debentures

Current portion of

57,662

131

744

24,699

9,088

8,983

1,183

259

4,453

997

Other accounts payable

Current portion of long-

6,201

131

Trade accounts payable

related parties

Short-term loans from

financial institutions

Short - term loans from

2010

63,231

251

601

29,514

12,104

9,255

548

1,196

334

2,279

1,052

176

1,289

4,302

330

2009

Segment 1

27,689

246

4,662

11,593

1,695

288

3,070

279

588

1,113

4,039

21,864

214

885

13,923

1,836

167

1,579

548

262

632

1,064

580

2009

Segment 2

2010

Business segment financial position

2,538

170

771

1,397

2,770

122

(3)

159

881

1,497

2009

Segment 3 2010

8,754

128

209

312

8,060

8,971

121

129

8,580

2009

Segment 4 2010

2,016

234

484

300

295

166

290

2,062

604

521

289

130

290

(in million Baht)

2009

Segment 5 2010

4,618

567

438

835

1,165

1,460

4,048

602

1,001

425

1,169

771

2009

Segment 6 2010

2009

Segment 7 2010

(43,219)

(20,681)

(520)

(4)

(5,546)

(103)

(98)

(557)

(1,883)

(13,917)

(43,788)

(113)

(26,149)

122

(84)

(3,313)

(244)

(8)

(983)

(1,739)

(11,277)

2009

Eliminations 2010

Total

60,058

1,082

1,081

29,444

11,255

1,907

429

3,107

917

1,488

7,845

1,460

2010

59,158

876

881

30,399

12,818

1,723

1,339

400

855

1,452

490

1,262

5,892

771

2009

233

234

Investment income

Note Rental income Operating lease rental income

4 4 4

21 21

4,066 105 4,171

824 25 105 21 975

Interest income Subsidiaries Other parties

163 163

219 219

1,995 118 2,113

1,816 186 2,002

164

241

6,290

2,981

Selling expenses

Distribution Promotional Marketing Personnel Others Total

Dividend income Subsidiaries Jointly-controlled entities Associates Other parties

Total

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht)

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 1,129 1,103 4 6 48 23 10 7 1 4 4 209 265 136 60 1,523 1,455 14 17

Administrative expenses

Personnel Administrative Depreciation and amortisation Loss on disposal of fixed assets Total

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 1,414 1,530 1,077 937 2,306 1,145 1,500 1,073 566 436 372 307 43 156 22 154 4,329 3,267 2,971 2,471

235

Employee benefit expenses Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht)

Management Wages and salaries Contribution to defined contribution plans

Other employees Wages and salaries Contribution to defined contribution plans Others

Total

194 6 200

187 3 190

108 5 113

95 3 98

3,395 126 88 3,609

3,177 146 56 3,379

1,929 83 2,012

1,688 84 1,772

3,809

3,569

2,125

1,870

The defined contribution plans comprise provident funds established by the Group in Thailand for its employees. Membership to the funds is on a voluntary basis. Contributions are made monthly by the employees at the minimum rate as required by law not exceeding 10% of their basic salaries and the Group contributes at the minimum rate as required by law not exceeding 10% of the employeesâ&#x20AC;&#x2122; basic salaries. The provident funds are registered with the Ministry of Finance as juristic entities and are managed by a licensed Fund Manager.

Expenses by nature The statements of income include an analysis of expenses by function. Expenses by nature disclosed in accordance with the requirements of various TAS and TFRS were as follows: Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) Included in cost of sales of goods: Changes in inventories of finished goods and work in progress Raw materials used Depreciation of property, plant and equipment Amortisation of intangible assets Included in administrative expenses: Depreciation of property, plant and equipment Amortisation of intangible assets Lease payments recognised as an operating lease expense

1,345 65,673

245 56,995

469 41,803

(76) 35,300

4,626 161

4,000 184

2,445 59

2,363 80

477 90

451 63

305 67

264 43

326

269

159

105

Finance costs

Note Interest paid and payable to financial institutions Capitalised as cost of assets under construction Net

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 2,245

2,260

2,119

2,078

(6) 2,239

(1) 2,259

2,119

2,078

236

Income tax expense

Note Current tax expense Current year Under / (over) provided in prior years Deferred tax expense Movements in temporary differences

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 1,337 2,151 968 1,723 24 (30) 23 (9) 1,361 2,121 991 1,714

13 27

208

164

182

Total

1,388

2,329

1,155

1,896

Reconciliation of effective tax rate

Consolidated financial statements 2010 2009 Rate (in million Rate (in million Baht) (%) Baht) (%) 12,129 9,609 30.00 3,639 30.00 2,883 (0.12) (15) (0.14) (14) 0.49 59 (21.87) (2,652) (8.11) (779) 2.94 357 2.49 239 11.44 1,388 24.24 2,329

Profit before income tax expense Income tax using the Thai corporation tax rate Income tax reduction Effect of different tax rates in foreign jurisdictions Income not subject to tax Expenses not deductible for tax purposes Total

Reconciliation of effective tax rate

Profit before income tax expense Income tax using the Thai corporation tax rate Income tax reduction Income not subject to tax Expenses not deductible for tax purposes Total

Separate financial statements 2010 2009 (in million Rate (in million Rate (%) Baht) (%) Baht) 10,160 11,018 30.00 3,048 30.00 3,305 (0.15) (15) (0.13) (14) (18.91) (1,921) (13.35) (1,471) 0.42 43 0.69 76 11.36 1,155 17.21 1,896

Income tax reduction Royal Decree No. 387 B.E. 2544 dated 5 September 2001 grants companies listed on the Stock Exchange of Thailand a reduction in the corporate income tax rate from 30% to 25% for taxable profit not exceeding Baht 300 million for the five consecutive accounting periods beginning on or after enactment. Listed companies that received income tax reduction under this Royal Decree are also eligible to continue the period of tax reduction under Royal Decree No. 475 but not beyond the 2010 accounting period ending on or after 31 December 2010. The Company has, accordingly, calculated income tax on its taxable profit for the years ended 31 December 2010 and 2009 at the corporate income tax rate as specified in the Royal Decree.

237

Promotional privileges By virtue of the provisions of the Industrial Investment Promotion Act of B.E. 2520, the Group/Company has been granted privileges by the Board of Investment relating to production and distribution of petrochemical product, Polyethylene plastic resin, utilities and production support facilities such as jetty and buffer tank farm services for liquid chemical and marine transportation services. The privileges granted include: (a)

exemption from payment of import duty on machinery approved by the Board;

(b)

exemption from payment of income tax for certain operations for a period of eight years from the date on which the income is first derived from such operations; and

(c)

a 50% reduction in the normal income tax rate on the net profit derived from certain operations for a period of five years, commencing from the expiry date in (b) above.

As promoted companies, the Company and its subsidiaries must comply with certain terms and conditions prescribed in the promotional certificates. Summary of revenues from promoted and non-promoted businesses:

Promoted businesses Export sales Local sales Service income Eliminations Total Revenues

3,904 48,010

Consolidated financial statements 2010 2009 NonNonPromoted promoted promoted busibusinesses Total nesses businesses (in million Baht) 6,966 10,870 3,808 13,398 60,577 108,587 36,787 50,525 6,165 (24,535) 101,087

Total 17,206 87,312 4,409 (22,898) 86,029

Separate financial statements Promoted businesses Export sales Local sales Service income Total Revenues

755 15,214 188 16,157

2010 Nonpromoted businesses 283 41,833 166 42,282

Promoted busiTotal nesses (in million Baht) 1,038 380 57,047 18,540 354 94 58,439 19,014

2009 Nonpromoted businesses 41,011 239 41,250

Total 380 59,551 333 60,264

238

Earnings per share Basic earnings per share The calculations of basic earnings per share for the years ended 31 December 2010 and 2009 were based on the profit for the years attributable to equity holders of the Company and the weighted average number of ordinary shares outstanding during the years as follows: Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht / million shares) Profit for the year attributable to equity holders of the Company (basic) Number of ordinary shares outstanding at 1 January Effect of shares issued during the year Weighted average number of ordinary shares outstanding (basic) Earnings per share (basic) (in Baht)

10,290

6,802

9,006

9,122

1,501.1 5.7

1,496.7 1.1

1,501.1 5.7

1,496.7 1.1

1,506.8

1,497.8

1,506.8

1,497.8

6.83

4.54

5.98

6.09

Diluted earnings per share The calculations of diluted earnings per share for the years ended 31 December 2010 and 2009 were based on the profit for the years attributable to equity holders of the Company and the weighted average number of ordinary shares outstanding during the years after adjusting for the effects of all dilutive potential ordinary shares as follows: Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht / million shares) Profit for the year attributable to equity holders of the Company (diluted) Weighted average number of ordinary shares outstanding (basic) Effect of shares options on issue Weighted average number of ordinary shares outstanding (diluted) Earnings per share (diluted) (in Baht)

10,290

6,802

9,006

9,122

1,506.8 4.9

1,497.8 0.4

1,506.8 4.9

1,497.8 0.4

1,511.7

1,498.2

1,511.7

1,498.2

6.81

4.54

5.96

6.09

239

Dividends At the Board of Directors’ Meeting held on 20 August 2010, the Board approved the appropriation of interim dividends for the performance from 1 January 2010 to 30 June 2010 of Baht 1.45 per share, which was paid to the shareholders entitled to receive dividends, totalling approximately Baht 2,187 million in September 2010. At the Annual General Meeting of the shareholders of the Company held on 7 April 2010, the shareholders approved the appropriation of dividends of Baht 2.0 per share, of which Baht 0.60 per share was paid as an interim dividend in August 2009. The remaining dividend at the rate of Baht 1.40 per share was paid to the shareholders entitled to receive dividends, totalling approximately Baht 2,101 million in April 2010. At the Board of Directors meeting held on 21 August 2009, the Board approved the appropriation of interim dividends of Baht 0.6 per share, amounting to Baht 898 million, from the net profit for the six-month period ended 30 June 2009. The dividend was paid to shareholders on 17 September 2009. At the annual general meeting of the shareholders of the Company held on 8 April 2009, the shareholders approved the appropriation of dividends of Baht 4 per share, amounting to Baht 5,937 million, from the net profit of 2008 after deducting the interim dividends of Baht 3 per share, amounting to Baht 4,490 million, paid to shareholders during 2008, from the net profit for the six-month period ended 30 June 2008. The balance of dividend, amounting to Baht 1,497 million, was paid to shareholders during 2009.

Financial instruments Financial risk management policies The Group/Company is exposed to normal business risks from changes in market interest rates and currency exchange rates and from non-performance of contractual obligations by counterparties. The Group/Company does not hold or issue derivative financial instruments for speculative or trading purposes. Risk management is integral to the whole business of the Group/Company. The Group/Company continually has a system of risk management process to create an acceptable and appropriate balance of risk. Interest rate risk Interest rate risk is the risk that future movements in market interest rates will affect the results of the Group’s / Company’s operations and its cash flows because the Group’s / Company’s finances loans which have both floating and fixed interest rates, for their operations. The Group/Company mitigates this risk by ensuring that the majority of its borrowings are at fixed interest rates.

240

The effective interest rates of loans receivable as at 31 December and the periods in which the loans receivable mature or re-price were as follows: Effective interest Rate (% per annum) 2010 Current Loans receivable – Related parties Average cost of fund Non-current Loans receivable – Related parties Average cost of fund Total 2009 Current Loans receivable – Related parties Average cost of fund Non-current Loans receivable – Related parties Average cost of fund Total

Separate financial statements Within 1 After 1 year but After 5 Total year within 5 years years

(in million Baht)

13,447

5,546 18,993

20,681 20,681

26,227 39,674

11,277

3,313 14,590

24,365 24,365

1,662 1,662

29,340 40,617

The effective interest rates of interest-bearing liabilities at 31 December 2010 and 2009 and the periods in which those liabilities mature or re-price were disclosed in note 14. Foreign currency risk The Group/Company is exposed to foreign currency risk relating to purchases and sales, including borrowings which are denominated in foreign currencies. The Group/Company primarily utilizes forward exchange contracts to hedge such financial assets and liabilities denominated in foreign currencies. The forward exchange contracts entered into at the balance sheet date also relate to anticipated purchases and sales, denominated in foreign currencies, for the subsequent period. In addition, the Group and the Company uses derivative financial instruments, principally interest rate and currency swaps, to manage exposure to fluctuations in interest rates and in exchange rates on specific debt securities and borrowings. At 31 December, the Group and the Company were exposed to foreign currency risk in respect of financial assets and liabilities denominated in the following currencies:

241

Note USD Cash and cash equivalents Trade accounts receivable Interest-bearing liabilities Trade accounts payable Retention payables Payable to contractors Other payables Gross balance sheet exposure Currency swaps Currency forwards Net exposure EUR Cash and cash equivalents Trade accounts receivable Advance payment Interest-bearing liabilities Trade accounts payable Retention payables Payable to contractors Other payables Gross balance sheet exposure Currency swaps Currency forwards Net exposure SGD Cash and cash equivalents Other investments Other payables Gross balance sheet exposure Currency swaps Currency forwards Net exposure JPY Cash and cash equivalents Trade accounts receivable Advance payment Interest-bearing liabilities Trade accounts payable Retention payables Payable to contractors Other payables Gross balance sheet exposure Currency swaps Currency forwards Net exposure

5 6 14 15

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) 145 151 1,461 1,591 101 171 (9,649) (10,620) (9,060) (10,019) (400) (630) (6) (207) (14) (73) (5) (73) (300) (190) (6) (6) (25) (145) (68) (8,782) (9,916) (8,976) (10,202) 4,108 4,574 4,108 4,574 1,613 888 (3,061) (4,454) (4,868) (5,628) 187 744 3 (835) (429) (2) (332) 40 (292)

404 628 156 (1,003) (468) (10) (1) (40) (334) 17 (317)

5 10

15 290 (7) 298 298

23 290 (7) 306 306

290 290 290

5 6

46 147 (110) (22) (9) (24) (28) -

37 185 4 (18) (8) (8) 192 192

(8) (24) (29) (61) (61)

4 (8) (8) (12) (12)

5 6 14 15

14 15

3 3 3

151 (35) (10) (1) (10) 95 95

242

Note MYR Cash and cash equivalents Trade accounts receivable Interest-bearing liabilities Trade accounts payable Gross balance sheet exposure Currency swaps Currency forwards Net exposure

238 45 (746) (463) (926) (926)

5 6 14 15

Note Others Cash and cash equivalents Trade accounts receivable Other investments Interest-bearing liabilities Trade accounts payable Gross balance sheet exposure Currency swaps Currency forwards Net exposure

Consolidated financial statements 2010 2009

5 6 10 14 15

283 138 (156) (430) (165) (165)

Consolidated Financial statements 2010 2009 85 52 34 (19) (28) 124 40 (22) 142

Separate financial statements 2010 2009

93 89 33 (15) (39) 161 56 217

Separate Financial statements 2010 2009 -

Credit risk Credit risk is the potential financial loss resulting from the failure of a customer or a counterparty to settle its financial and contractual obligations to the Group/Company as and when they fall due. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount. At the reporting date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. However, the majority of the customers are on the long-term contracted commitment and parts of them are the Companyâ&#x20AC;&#x2122;s shareholders which the company has consistently collected from them. For the customers who do not have the long-term contracted commitments, the Group monitors the risk on an ongoing basis and would do the business only with the credible customers by limiting the credit lines and requesting the guarantee on some cases. For the export, the credit of counterparty will be considered and will demand a payment on a case to case basis. Management does not anticipate material losses from its debt collection. Liquidity risk The Group/Company monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management to finance the Groupâ&#x20AC;&#x2122;s/Companyâ&#x20AC;&#x2122;s operations and to mitigate the effects of fluctuations in cash flows.

243

Determination of Fair values A number of the Groupâ&#x20AC;&#x2122;s/Companyâ&#x20AC;&#x2122;s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. The fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an armâ&#x20AC;&#x2122;s length transaction. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. The fair value of trade and other short-term receivables is taken to approximate the carrying value. The fair value of investments in equity securities, which are held for held-to-maturity, is determined by reference to their quoted bid price at the reporting date. The fair value of held-to-maturity investments is determined for disclosure purposes only. The fair value of interest rate swaps is based on broker quotes. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the measurement date. The fair value of forward exchange contracts is based on their listed market price of forward rate for the residual maturity of the contract. The fair value of non-derivative financial liabilities, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. Fair values of debentures, together with the carrying values shown in the balance sheets at 31 December were as follows:

2010 Current Debentures Non-current Debentures Total 2009 Current Debentures Non-current Debentures Total

Consolidated Separate financial statements financial statements Fair Carrying Fair Carrying value value value value (in million Baht) -

30,801 30,801

29,444 29,444

30,801 30,801

29,444 29,444

400

31,108 31,508

30,399 30,799

31,108 31,508

30,399 30,799

244

Commitments with non-related parties The Company has the following significant commitments with non-related parties: Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) Capital commitments Contracted but not provided for Plant, machinery and equipment Buildings Total

827 43 870

2,595 22 2,617

575 575

1,560 18 1,578

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (in million Baht) Non-cancellable operating lease commitments Within one year After one year but within five years After five years Total

132 153 31 316

150 289 27 466

Consolidated Separate financial statements financial statements 2009 2010 2009 2010 (in million Baht) Other commitments Unused letters of credits Bank guarantees Forward contracts Swap contracts Other agreements Total

200 1,000 1,963 4,108 364 7,635

307 530 1,463 4,574 736 7,610

21 154 4,108 17 4,300

293 140 4,574 17 5,024

Others On 29 September 2009, following the petition no. 586/2009 (Map Ta Phut case), the Central Administrative Court ordered Government authorities as defendants to temporarily suspend 76 projects, which have not fully complied with the Section 67 chapter II of the Constitution of the Kingdom of Thailand, in Map Ta Phut Industrial Estate and vicinity areas as attached no. 7 in the petition. Subsequently, on 2 December 2009, the Supreme Administrative Court ordered, following the petition no. 592/2009, to confirm the order of the Central Administrative Court except for 11 projects. Of these 11 projects, 8 projects are projects of the Group.

245

On 22 January 2010, the Central Administrative Court ordered the temporarily suspended 65 projects, following the undecided case no. 908/2009, to coordinate with the relevant authorities to jointly consider whether the projects have complied with the conditions as ordered in the writ to continue their operations. During 2010, the Company and companies in the Group are coordinating with the relevant authorities to acknowledge the detail of projects either temporarily suspended by order of the Court or to be allowed to resume operations as a corrected order or damage of the Court. Subsequently, on 2 September 2010, the Central Administrative Court rendered a judgment of a case under the undecided case no.908/2009. The case affected 7 projects of the Company and the companies in the Group, which are not projects under the Notification of the Ministry of Natural Resources and Environment, dated 31 August 2010 and are allowed to resume their operations. However, for the remaining 1 project, the Group currently operates complying with the Central Administrative Court’s order in such undecided case. As at 31 December 2009, the Group has already invested a total of Baht 1,627 million for the remaining 1 project.

Events after the reporting period On 13 January 2011, PTT Chemical International Pte. Ltd., in which the Company holds 100%, signed a share purchase agreement with Myriant Technologies, Inc., USA., which conducts business focusing on research and development of bio-based chemical products. The transaction cost was USD 60 million. At the Board of Directors’ meeting held on 24 February 2011, the Board approved to submit for approval at the Annual General Meeting of the Shareholders, a full year 2010 dividend payment at the rate of Baht 3.07 per share, of which Baht 1.45 per share was paid as an interim dividend on 17 September 2010 as discussed in note 30. Thus, the remaining dividend will be at the rate of Baht 1.62 per share to the shareholders entitled to receive dividends, totalling approximately Baht 2,456 million. This dividend is subject to the approval of the Shareholders at the Annual General Meeting on 21 April 2011. At the Board of Directors’ meeting held on 24 February 2011, the Board approved the almagamation between the Company and PTT Aromatics and Refining Public Company Limited and will propose this to be approved in the Shareholders' meeting on 21 April 2011.

Thai Financial Reporting Standards (TFRS) not yet adopted The Group/Company has not adopted the following new and revised TAS/TFRS that have been issued as of the reporting date but are not yet effective. The new and revised TAS/TFRS are anticipated to become effective for annual financial periods beginning on or after 1 January in the year indicated.

TFRS

Topic

Year effective

TAS 1 (revised 2009)

Presentation of Financial Statements

2011

TAS 2 (revised 2009)

Inventories

2011

TAS 7 (revised 2009)

Statement of Cash Flows

2011

246

TFRS TAS 8 (revised 2009)

Topic

Year effective

TAS 10 (revised 2009)

Accounting Policies, Changes in Accounting Estimates and Errors Events after the Reporting Period

2011 2011

TAS 16 (revised 2009)

Property, Plant and Equipment

2011

TAS 17 (revised 2009)

Leases

2011

TAS 18 (revised 2009)

Revenue

2011

TAS 19

Employee Benefits

2011

TAS 21 (revised 2009)

The Effects of Changes in Foreign Exchange Rates

2013

TAS 23 (revised 2009)

Borrowing Costs

2011

TAS 24 (revised 2009)

Related Party Disclosures

2011

TAS 26

Accounting and Reporting by Retirement Benefit Plans

2011

TAS 27 (revised 2009)

Consolidated and Separate Financial Statements

2011

TAS 28 (revised 2009)

Investments in Associates

2011

TAS 31 (revised 2009)

Interests in Joint Ventures

2011

TAS 33 (revised 2009)

Earnings per Share

2011

TAS 34 (revised 2009)

Interim Financial Reporting

2011

TAS 36 (revised 2009)

Impairment of Assets

2011

TAS 37 (revised 2009)

Provisions, Contingent Liabilities and Contingent Assets

2011

TAS 38 (revised 2009)

Intangible Assets

2011

TAS 40 (revised 2009)

Investment Property

2011

TFRS 2

Share-based Payment

2011

TFRS 5 (revised 2009)

Non-current Assets Held for Sale and Discontinued Operations

2011

Management expects to adopt and apply these new TFRS in accordance with the FAPâ&#x20AC;&#x2122;s announcement and has made a preliminary assessment of the potential initial impact on the consolidated and separate Companyâ&#x20AC;&#x2122;s financial statements of those new standards assessed to have the greatest potential impact on the financial statements in the period of initial application. These standards are as follows:

247

TAS 16 (revised 2009) â&#x20AC;&#x201C; Property, plant and equipment The principal changes introduced by the revised TAS 16 and affecting the Group/Company are that (i) costs of asset dismantlement, removal and restoration have to be included as asset costs and subject to annual depreciation; (ii) the depreciation charge has to be determined separately for each significant part of an asset; and (iii) in determining the depreciable amount, the residual value of an item of property, plant and equipment has to be measured at the amount estimated receivable currently for the asset if the asset were already of the age and in the condition expected at the end of its useful life. Furthermore, the residual value and useful life of an asset have to be reviewed at least at each financial year-end. The revised TAS 16 permits as a transitional provision that these changes may be introduced prospectively from the year of introduction. Management intends to adopt this transitional provision and accordingly the introduction of the revised TAS 16 from 1 January 2011 has no impact on the financial statements of 2010 or prior years.

TAS 19 â&#x20AC;&#x201C; Employee benefits There is currently no Thai accounting standard covering employee benefits and the Group/Company does not presently account for the costs of post-employment benefits under defined benefit plans; other long-term employee benefits; and termination benefits until such costs are incurred. The new TAS 19 includes the requirements to recognise and account for such costs in the period in which the service is performed. The requirements are complex and require actuarial assumptions to measure the obligation and expense. Moreover, the obligations are measured on a discounted basis because they may be settled many years after the employees render the related service. The transitional provisions of TAS 19 permit the transitional liability to be recognised and accounted for in one of four different ways which the Group choose to adopt transitional provision by retrospective application. Management has determined that the transitional liability as at 1 January 2011 for post-employment benefits which resulted to increase in liability approximately Baht 602 million for the Group and Baht 487 million for the Company, respectively and decrease in retained earnings for the Group and the Company by the same amount.

248

Annual Report 2010 PTT Chemical Public Company Limited

$XGLW )HH $XGLW )HH

377 &KHPLFDO 3OF DQG LWV VXEVLGLDULHV SDLG D WRWDO RI %DKW PLOOLRQ LQ DXGLW IHH WR WKH H[WHUQDO DXGLWRU V RIILFH 2WKHU )HHV

1RQH

7HFKQLFDO 7HUPV $EEUHYLDWLRQV &KHPLFDO 3URGXFWV (* (2 (9$ )$ +'3( /'3( //'3( /3* 0( 0(* 1*/ 3& 3( 3(7 33 36 37$ 39& 3<*$6 9&0

(WK\OHQH *O\FRO (WK\OHQH 2[LGH (WK\OHQH 9LQ\O $FHWDWH )DWW\ $OFRKROV +LJK 'HQVLW\ 3RO\HWK\OHQH /RZ 'HQVLW\ 3RO\HWK\OHQH /LQHDU /RZ 'HQVLW\ 3RO\HWK\OHQH /LTXHILHG 3HWUROHXP *DV 0HWK\O (VWHU 0RQR (WK\OHQH *O\FRO 1DWXUDO *DVROLQH 3RO\FDUERQDWH 3RO\HWK\OHQH 3RO\ (WK\OHQH 7HUHSKWKDODWH 3RO\SURS\OHQH 3RO\VW\UHQH 3XULILHG 7HUHSKWKDOLF $FLG 3RO\ 9LQ\O &KORULGH 3\URO\VLV *DVROLQH 9LQ\O &KORULGH 0RQRPHU

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

ZZZ SWWFKHPJURXS FRP

PTT Chemical Public Company Limited A Company of PTT Group 555/1, Energy Complex, Building A, 15th -18th Floors, Vibhavadi Rangsit Rd., Chatuchak, Bangkok 10900, Thailand Tel: +66 (0) 2265-8400 Fax: +66 (0) 2265-8500