(TRANSLATION) AUDITOR S REVIEW REPORT TO: THE SHAREHOLDERS OF PTT PUBLIC COMPANY LIMITED

Transcription

1 (TRANSLATION) AUDITOR S REVIEW REPORT TO: THE SHAREHOLDERS OF PTT PUBLIC COMPANY LIMITED The Office of the Auditor General of Thailand has reviewed the accompanying consolidated balance sheets of PTT Public Company Limited and its subsidiaries and the balance sheets of PTT Public Company Limited as at, the related consolidated and the Company s statements of income, changes in shareholders equity and cash flows for the three-month periods ended and of PTT Public Company Limited and its subsidiaries and of PTT Public Company Limited, respectively. These financial statements are the responsibility of the Company s management as to their correctness and completeness of the presentation. The responsibility of the Office of the Auditor General of Thailand is to issue a report on these financial statements based on the reviews. The Office of the Auditor General of Thailand conducted the reviews in accordance with the generally accepted auditing standards applicable to review engagements. Those standards require that the Office of the Auditor General of Thailand plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of the Company s personnel and analytical procedures applied to financial data and thus provides less assurance than an audit in accordance with generally accepted auditing standards, accordingly, the Office of the Auditor General of Thailand does not express an audit opinion. Based on the reviews, nothing has come to attention that causes the Office of the Auditor General of Thailand to believe that the consolidated and the Company s financial statements are not presented fairly, in all material respects, in accordance with generally accepted accounting principles. The Office of the Auditor General of Thailand previously audited the consolidated and the Company s financial statements for the year ended, of PTT Public Company Limited and its subsidiaries in accordance with generally accepted auditing standards and expressed an unqualified opinion on those statements in the report dated February 22,. The consolidated and the Company s balance sheets as at, presented for comparative purposes, are a part of the

2 financial statements which the Office of the Auditor General of Thailand has audited and issued a report thereon as stated above. The Office of the Auditor General of Thailand has not performed any other auditing procedures subsequent to the date of that report except for the items as stated in the fifth paragraph. As stated in Note 2.1, the Company has changed its accounting policy for business combinations in respect of the goodwill and negative goodwill arising from business combinations since January 1,. has complied with Thai Accounting Standard No.43 (revised ) Business Combinations by applying the prospective method, stopping amortization and testing for impairment of goodwill arising before the effective date of the standard and restating the carried forward of retained earnings balance for the negative goodwill arising before the effective date of the standard. In respect of these changes in accounting policy, the Office of the Auditor General of Thailand audited the related adjustments that were used in the preparation of the restated consolidated financial statements for the year ended. The adjustments were appropriate and fairly adjusted in the consolidated financial statement. The Office of the Auditor General of Thailand draws attention to Note 22.3 with regard to commitments and contingent liabilities. has commitments relating to compliance with the judgement of the Supreme Administrative Court as stated in Note 21. (Signed) Jaruvan Maintaka (Khunying Jaruvan Maintaka) Auditor General (Signed) Poungchomnad Jariyajinda (Poungchomnad Jariyajinda) Director of Audit Office For Auditor General May 12,

3 PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS AS AT MARCH 31, AND DECEMBER 31, Assets Unit : Baht Notes (Unaudited (Audited) (Unaudited (Audited) Reviewed) Reviewed) Current Assets Cash and cash equivalents 3 93,434,684,752 74,958,290,312 54,914,944,131 43,184,607,043 Current investments 5,953,097,398 6,231,245,201 5,238,521,467 5,817,909,512 Trade accounts and notes receivable - others, net 4 84,817,155, ,935,784,153 73,377,796, ,268,825,980 Trade accounts receivable - related parties, net ,756,717,388 78,047,438,110 90,149,309,490 89,280,102,672 Other accounts receivable, advances and short-term loans - related parties, net ,238,774 1,392,778,014 28,049,283,080 29,686,760,490 Inventories 14,353,551,515 13,522,236,295 8,767,401,258 9,443,951,828 Materials and supplies, net 6,705,251,978 6,374,453,209 2,016,770,351 1,992,679,553 Other current assets 14,256,477,491 18,468,602,600 8,779,863,628 12,889,788,670 Total Current Assets 303,011,175, ,930,827, ,293,889, ,564,625,748 Non-current Assets Investments in subsidiaries, jointly controlled entities 6.3, ,741,186, ,951,194, ,053,373, ,615,186,388 and associates Other long-term investments 7 3,289,190,481 3,170,869,600 2,645,455,771 2,527,134,890 Other accounts receivable, advances and long-term loans - related parties, net 5.3 6,305,924,638 6,243,742,753 14,150,497,438 9,040,529,953 Property, plant and equipment, net 8 324,059,647, ,143,111, ,397,130, ,272,119,905 Intangible assets 9 19,949,716,300 20,094,265,580 17,756,858,060 17,819,371,585 Goodwill 10 12,325,555,703 12,432,055, Deferred tax assets 711,019,332 1,068,989, ,693,053 1,056,743,080 Advance payment for gas purchased 11 11,767,163,686 12,702,079,331 14,617,651,276 15,761,742,592 Other non-current assets 15,982,866,176 15,614,329,415 12,006,853,647 12,245,528,680 Total Non-current Assets 598,132,270, ,420,637, ,327,513, ,338,357,073 Total Assets 901,143,445, ,351,465, ,621,403, ,902,982,821 Notes to financial statements form an integral part of these financial statements.

4 PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS AS AT MARCH 31, AND DECEMBER 31, Liabilities and Shareholders' Equity Unit : Baht Notes (Unaudited (Audited) (Unaudited (Audited) Reviewed) Reviewed) Current Liabilities Bank overdrafts and short-term loans from financial institutions 4,492,041,041 5,768,059,372-1,500,000,000 Trade accounts payable - others 105,864,436, ,525,553,116 99,471,227, ,166,953,840 Trade accounts payable - related parties ,366,645,127 45,873,420,169 48,450,945,693 57,688,482,406 Other accounts payable - related parties ,779,265 1,871,060, ,923,987 2,138,621,461 Current portion of long-term loans 12 13,004,425,837 8,611,832,774 12,924,334,484 8,525,328,743 Short-term loans - others 585,023, ,872, Income tax payable 35,946,599,198 26,849,596,698 13,278,008,451 10,251,830,715 Accrued expenses 23,438,030,267 28,177,315,311 8,873,173,071 12,380,415,523 Other current liabilities 7,455,055,945 10,580,929,279 4,903,810,178 6,732,879,934 Total Current Liabilities 231,790,036, ,884,639, ,691,422, ,384,512,622 Non-current Liabilities Other long-term accounts payable - related parties ,514,278 86,749,471 Long-term loans ,552,288, ,387,288, ,355,323, ,289,114,087 Deferred tax liabilities 15,334,158,041 14,738,003, ,849, ,613,311 Provision for decommissioning costs 13 10,257,145,568 10,990,904, Deposits on LPG cylinders 4,750,998,233 4,647,662,493 4,750,998,233 4,647,662,493 Other non-current liabilities 5,356,747,766 6,051,447,496 4,983,242,782 5,228,594,106 Total Non-current Liabilities 238,251,337, ,815,306, ,541,928, ,479,733,468 Total Liabilities 470,041,374, ,699,946, ,233,351, ,864,246,090 Notes to financial statements form an integral part of these financial statements. 2

5 Liabilities and Shareholders' Equity (Continued) PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS AS AT MARCH 31, AND DECEMBER 31, Unit : Baht Notes (Unaudited (Audited) (Unaudited (Audited) Reviewed) Reviewed) Shareholders' Equity Share capital Authorized share capital 2,857,245,725 ordinary shares of Baht 10 each ,572,457,250 28,572,457,250 28,572,457,250 28,572,457,250 Issued and paid-up share capital 2,818,477,025 ordinary shares of Baht 10 each ,184,770,250-28,184,770,250-2,817,388,125 ordinary shares of Baht 10 each ,173,881,250-28,173,881,250 Premium on share capital Premium on ordinary shares ,827,337,066 21,624,238,766 21,827,337,066 21,624,238,766 Surplus on dilution of investments in subsidiaries and associates 3,874,971,353 3,851,325, Unrealized gain on available-for-sale securities 649,094, ,702, ,122, ,097,724 Currency translation differences (1,428,626,417) (914,236,846) - - Retained earnings Appropriated Legal reserve 2,857,245,725 2,857,245,725 2,857,245,725 2,857,245,725 Reserve for self-insurance fund 928,759, ,759, ,759, ,759,399 Unappropriated 335,781,210, ,303,841, ,076,816, ,923,513,867 Total parent's shareholders' equity 392,674,762, ,496,757, ,388,051, ,038,736,731 Minority interests 38,427,308,248 37,154,760, Total Shareholders' Equity 431,102,070, ,651,518, ,388,051, ,038,736,731 Total Liabilities and Shareholders' Equity 901,143,445, ,351,465, ,621,403, ,902,982,821 Notes to financial statements form an integral part of these financial statements. (Signed) Prasert Bunsumpun (Prasert Bunsumpun) Chief Executive Officer & President (Signed) Pichai Chunhavajira (Pichai Chunhavajira) Chief Financial Officer 3

6 PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF INCOME FOR THE THREE-MONTH PERIODS ENDED MARCH 31, AND Unit : Baht Notes (Restated) (Restated) Sales and services 489,889,942, ,714,266, ,974,974, ,341,014,796 Cost of sales and services 454,250,353, ,293,099, ,982,607, ,269,430,747 Gross Margin 35,639,588,925 31,421,167,076 16,992,366,351 14,071,584,049 Selling and administrative expenses 7,594,135,521 6,124,336,079 6,127,848,783 4,392,143,675 Petroleum exploration expenses 958,977, ,617, Income from Sales 27,086,475,785 24,950,213,615 10,864,517,568 9,679,440,374 Other income 16 8,142,543,053 4,801,034,006 12,436,132,358 6,982,535,805 Directors' remuneration ,420,482 33,580,565 10,602,387 10,439,000 Income from Operations 35,212,598,356 29,717,667,056 23,290,047,539 16,651,537,179 Share of net income from investments 17 under the equity method 7,738,322,905 7,177,402, Income before Interests and Taxes 42,950,921,261 36,895,069,853 23,290,047,539 16,651,537,179 Interest expenses 2,500,454,691 2,368,237,999 2,140,916,133 1,729,924,259 Income taxes 11,089,117,546 8,382,224,184 3,995,828,567 2,380,325,621 Net Income 29,361,349,024 26,144,607,670 17,153,302,839 12,541,287,299 Attributable to: Equity holders of the Company 26,132,555,042 22,573,036,551 17,153,302,839 12,541,287,299 Minority interests 3,228,793,982 3,571,571, ,361,349,024 26,144,607,670 17,153,302,839 12,541,287,299 Basic earnings per share attributable to the equity holders of the Company Diluted earnings per share attributable to the equity holders of the Company Notes to financial statements form an integral part of these financial statements. 4

7 PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE THREE-MONTH PERIODS ENDED MARCH 31, AND CONSOLIDATED Retained earnings Surplus on Unrealized gain(loss) Currency Reserve for Issued and paid-up Premium on dilution of on available-for-sale translation Legal Self-insurance Minority Notes share capital share capital investments securities differences reserve Fund Unappropriated interests Total Unaudited Reviewed Restated Unit : Baht Balance as at January 1, 28,049,256,250 19,321,453,366 2,950,404, ,391,320 (994,247,170) 2,857,245, ,116, ,296,559,472 66,490,182, ,322,362,893 Cumulative effect of the judgement of the Supreme - Administrative Court ,738,399,599-1,738,399,599 Balance after adjustment 28,049,256,250 19,321,453,366 2,950,404, ,391,320 (994,247,170) 2,857,245, ,116, ,034,959,071 66,490,182, ,060,762,492 Issued and paid-up share capital 1,872, ,872,000 Premium on share capital - 32,385, ,385,600 Currency translation differences (162,339,463) (162,339,463) Unrealized loss on available-for-sale securities (19,322,356) (19,322,356) Minority interests ,218,278,432 1,218,278,432 Surplus on dilution of investments in subsidiaries and associates ,850, ,850,920 Net income ,573,036,551-22,573,036,551 Balance as at 28,051,128,250 19,353,838,966 3,044,255, ,068,964 (1,156,586,633) 2,857,245, ,116, ,607,995,622 67,708,461, ,798,524,176 Balance as at January 1, 28,173,881,250 21,624,238,766 3,851,325, ,702,449 (914,236,846) 2,857,245, ,759, ,303,841,805 37,154,760, ,651,518,839 Cumulative effect of the changes in accounting policy ,344,813,641-5,344,813,641 Balance after adjustment 28,173,881,250 21,624,238,766 3,851,325, ,702,449 (914,236,846) 2,857,245, ,759, ,648,655,446 37,154,760, ,996,332,480 Issued and paid-up share capital ,889, ,889,000 Premium on share capital ,098, ,098,300 Currency translation differences (514,389,571) (514,389,571) Unrealized loss on available-for-sale securities (22,607,642) (22,607,642) Minority interests ,272,547,321 1,272,547,321 Surplus on dilution of investments in subsidiaries and associates ,645, ,645,989 Net income ,132,555,042-26,132,555,042 Balance as at 28,184,770,250 21,827,337,066 3,874,971, ,094,807 (1,428,626,417) 2,857,245, ,759, ,781,210,488 38,427,308, ,102,070,919 Notes to financial statements form an integral part of these financial statements. 5

8 PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE THREE-MONTH PERIODS ENDED MARCH 31, AND THE COMPANY Retained earnings Surplus on Unrealized gain(loss) Currency Reserve for Issued and paid-up Premium on dilution of on available-for-sale translation Legal Self-insurance Notes share capital share capital investments securities differences reserve Fund Unappropriated Total Unaudited Reviewed Restated Unit : Baht Balance as at January 1, 28,049,256,250 19,321,453,366 2,950,404, ,391,320 (994,247,170) 2,857,245, ,116, ,296,559, ,832,179,955 Cumulative effect of the changes in accounting policy - - (2,950,404,482) 12,858, ,247, (93,802,933,769) (95,746,232,401) Cumulative effect of the judgement of the Supreme - Administrative Court ,738,399,599 1,738,399,599 Balance after adjustment 28,049,256,250 19,321,453, ,250,000-2,857,245, ,116, ,232,025, ,824,347,153 Issued and paid-up share capital 1,872, ,872,000 Premium on share capital - 32,385, ,385,600 Unrealized loss on available-for-sale securities (14,950,000) (14,950,000) Net income ,541,287,299 12,541,287,299 Balance as at 28,051,128,250 19,353,838, ,300,000-2,857,245, ,116, ,773,312, ,384,942,052 Balance as at January 1, 28,173,881,250 21,624,238, ,097,724-2,857,245, ,759, ,923,513, ,038,736,731 Issued and paid-up share capital ,889, ,889,000 Premium on share capital ,098, ,098,300 Unrealized loss on available-for-sale securities (17,975,382) (17,975,382) Net income ,153,302,839 17,153,302,839 Balance as at 28,184,770,250 21,827,337, ,122,342-2,857,245, ,759, ,076,816, ,388,051,488 Notes to financial statements form an integral part of these financial statements. 6

9 PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, AND Unit : Baht (Restated) (Restated) Cash Flows from Operating Activities Net income 26,132,555,042 22,573,036,551 17,153,302,839 12,541,287,299 Adjustment of net income to net cash provided by (used in) operating activities : Depreciation, depletion and amortization 6,654,691,914 6,368,865,848 1,651,128,621 1,352,678,031 (Reversal of) loss on impairment of assets 4,644,019 1,228,596 4,644,019 1,228,596 (Gain) loss on disposal of assets (6,697,852) 20,201,794 (6,769,667) (1,725,618) Write-off fixed assets (60,701) 8,745,083 (60,701) 8,745,083 Share of net income from investments under the equity method (7,738,322,905) (7,177,402,797) - - Income attributable to minority interests 3,228,793,982 3,571,571, Gain on foreign exchange (4,045,417,175) (1,951,404,346) (2,441,264,144) (1,067,704,273) (Reversal of) doubtful accounts (56,536,065) 33,095,935 (63,924,346) 17,924,555 Amortization of exploration costs 336,032, ,955, Amortization of bond issue expenses 1,095, , Provision for adjustment in value of inventories 4,208, (35,681,543) 543) (463,611) 611) (35,681,543) 543) Dividends received - (191,244,298) (5,317,554,775) (3,734,762,850) Income taxes 11,089,269,427 8,394,317,873 3,995,828,567 2,380,325,622 Interest income (1,230,737,093) (1,027,621,203) (1,010,846,774) (430,651,046) Interest expenses 2,995,819,048 2,251,225,620 2,141,798,745 1,730,739,686 Others (514,882) (2,729,183) (514,882) - Net income from operating activities before changes in operating assets and liabilities 37,368,823,177 32,949,119,455 16,105,303,891 12,762,403,542 Notes to financial statements form an integral part of these financial statements. 7

10 PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, AND Unit : Baht (Restated) (Restated) Changes in operating assets (increase) decrease Trade accounts and notes receivable - others 31,683,241,865 (1,095,479,736) 27,986,370,506 (1,364,278,797) Trade accounts receivable - related parties (4,409,134,111) (5,872,154,767) (1,994,095,472) (4,271,078,659) Other accounts receivable, advances and short-term loans to related parties (460,436,604) 6,033,113,944 (216,097,714) 1,246,171,849 Inventories (689,176,734) 2,135,331, ,806,537 2,201,669,300 Materials and supplies (331,266,629) (232,459,843) (17,386,497) (68,231,117) Other current assets 4,347,616,887 1,316,063,725 4,131,321,588 2,125,660,372 Advance payment for gas purchased 934,915, ,518,826 1,144,091, ,538,897 Other long-term accounts receivable and advances to related parties (81,963,485) (975,970,922) (9,749,085) (975,863,187) Other non-current assets (130,468,706) 721,212, ,362, ,681,873 Changes in operating liabilities increase (decrease) Trade accounts payable - others (10,589,319,952) 10,978,596,135 (10,628,341,707) 8,284,792,642 Trade accounts payable - related parties (4,326,326,055) (400,582,391) (8,140,591,280) (1,054,240,691) Other accounts payable - related parties (1,526,578,239) ) (5,081,971,361) (1,211,791,450) (143,814,500) Income tax payable (1,982,847) 7,295, Accrued expenses (6,443,033,514) (742,020,183) (3,744,462,953) (198,894,959) Other current liabilities (212,990,844) 933,279,690 1,367,141,925 (787,755,032) Deposits on LPG cylinders 103,335,740 62,587, ,335,740 62,587,360 Other long-term accounts payable - related parties (639,062) - (50,235,193) (41,180,333) Other non-current liabilities (425,636,839) 13,593,882 (242,246,289) (51,162,635) 7,440,156,516 8,400,953,608 9,375,432,032 6,363,602,383 Interest received 279,283, ,881, ,699, ,849,234 Interest paid (92,233,513) (15,167,219) - - Taxation paid (1,158,987,494) (1,003,088,159) (412,660,440) (329,618,967) Net cash provided by operating activities 43,837,042,506 40,715,698,714 25,173,774,891 18,958,236,192 Notes to financial statements form an integral part of these financial statements. 8

11 PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, AND Unit : Baht (Restated) (Restated) Cash Flows from Investing Activities Proceeds from disposals of property, plant and equipment 8,101,388 3,648,902 2,967,910 1,433,051 Payment of property, plant and equipment (19,268,686,382) (24,305,323,789) (7,702,153,092) (5,580,347,476) Payment of intangible assets (60,403,919) (676,254,261) (48,003,928) (39,319,730) Long-term loans to others (399,105,371) - (74,296,794) - Long-term loans to related parties - - (5,880,000,000) (310,000,000) Short-term loans to others - (303,182,250) - - Short-term loans to related parties (606,364,500) Payment of investments in subsidiaries - (1,633,978,582) (5,000,000,000) (1,633,978,582) Payment of investments in jointly controlled entities (75,000,000) Payment of investments in associates (2,439,863,034) - (2,439,863,034) - Payment of long-term investments (144,000,000) (39,000,000) (144,000,000) (39,000,000) Proceeds from disposal of long-term investments 1,675, ,591,562 1,675,904 - Proceeds from long-term loans to related parties ,000,000 - Proceeds from short-term loans to related parties 757,637,585-10,657,637,585 - Proceeds from cancellation of leasehold in gas stations 16,044,565 2,662,500 16,044,565 2,662,500 Increase (decrease) in current investments 278,551,159 (142,114,071) 579,791,400 (87,791,831) Interest received 586,167, ,966, ,666, ,787,653 Dividends received 1,624,768, ,244,298 1,624,768,606 - Net cash used in investing activities (19,039,111,577) (26,124,738,715) (7,083,764,198) (8,163,918,915) Notes to financial statements form an integral part of these financial statements. 9

12 PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, AND Unit : Baht Notes (Restated) (Restated) Cash Flows from Financing Activities Proceeds from issuing ordinary shares 67,853,940 14,632,620 10,889,000 1,872,000 Proceeds from premium on share capital 203,098,300 32,385, ,098,300 32,385,600 Proceeds from long-term loans 803,642,877 7,100,000,000 90,000,000 6,000,000,000 Proceeds from issuing bonds - 9,500,000,000-6,000,000,000 Proceeds from short-term loans 223,981, ,920, Payment of long-term loans (29,750,000) (6,461,488,694) - (6,000,000,000) Payment of notes payable (1,500,000,000) - (1,500,000,000) - Redemption of debentures - (628,571,300) - - Redemption of government bonds (3,000,000,000) (4,000,000,000) (3,000,000,000) (4,000,000,000) Payment of finance lease installments (49,600,913) (58,805,937) (45,453,116) (32,759,368) Increase in bank overdrafts and short-term loans from financial institutions - 214,806, Interest paid (2,777,987,282) (3,224,670,771) (2,113,629,590) (2,393,813,534) Dividends paid (86,247) (317,424) - - Net cash (used in) provided by financing activities (6,058,847,656) 2,789,890,544 (6,355,095,406) (392,315,302) Effects of exchange rates on cash and cash equivalents (125,706,815) (18,351,348) (4,578,199) 168,733,196 Currency translation differences (136,982,018) (105,082,044) - - Net increase in cash and cash equivalents 18,476,394,440 17,257,417,151 11,730,337,088 10,570,735,171 Cash and cash equivalents at beginning of periods 74,958,290,312 86,806,254,165 43,184,607,043 26,509,729,979 Cash and cash equivalents at end of periods 3 93,434,684, ,063,671,316 54,914,944,131 37,080,465,150 Notes to financial statements form an integral part of these financial statements. 10

13 AUDITOR S REVIEW REPORT AND INTERIM FINANCIAL STATEMENTS PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES FOR THE THREE-MONTH PERIOD ENDED MARCH 31,

14 PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, NOTES CONTENTS 1 General Information 2 Accounting Changes 3 Cash and Cash Equivalents 4 Trade Accounts and Notes Receivable Others, Net 5 Related Party Transactions 6 Investments in Subsidiaries, Jointly Controlled Entities and Associates 7 Other Long-term Investments 8 Property, Plant and Equipment, Net 9 Intangible Assets 10 Goodwill, Net 11 Advance Payments for Gas Purchased 12 Long-term Loans 13 Provision for Decommissioning Costs 14 Share Capital 15 Earnings per Share 16 Other Income 17 Share of Net Income from Investments under the Equity Method 18 Segment Information 19 Reclassification 20 Promotional Privileges 21 Compliance with the Judgment of the Supreme Administrative Court 22 Commitments and Contingent Liabilities 23 Subsequent Events 11

15 PTT PUBLIC COMPANY LIMITED AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, (UNAUDITED, REVIEWED) AND FOR THE YEAR ENDED DECEMBER 31, (AUDITED) 1. General Information 1.1 Purpose of the Interim Financial Statements These interim financial statements are prepared in order to provide additional information other than that included in the most recent annual financial statements. Accordingly, these interim financial statements focus on the reporting of new activities, events and circumstances so as not to duplicate information previously reported. These interim financial statements should; therefore, be read in conjunction with the most recent annual financial statements. 1.2 Preparation of the Interim Financial Statements These interim financial statements are prepared in accordance with Thai Accounting Standard No. 41 (revised ) Interim Financial Reporting. The content of the interim financial statements comprises the balance sheets, statements of income, changes in shareholders equity and cash flows, as presented in the most recent annual financial statements, together with selected significant explanatory notes. 1.3 Basis of Preparation PTT Public Company Limited ( the Company ) and its subsidiaries are collectively referred to as the Group. These consolidated financial statements have been prepared under the same basis as the consolidated financial statements for the year ended. There has been no change in the structures of subsidiaries, jointly controlled entities and associates during the period. 1.4 Summary of Significant Accounting Policies has prepared these interim financial statements based on the same accounting policies and computation methods as applied in the financial statements for the year ended which were prepared in accordance with generally accepted accounting principles with the exception of the matter noted in Note 2. 12

16 1. General Information (Continued) 1.5 Amendments to Accounting Standards effective for accounting periods beginning on or after January 1,. Thai Accounting Standard No.25 (revised ) Thai Accounting Standard No.29 (revised ) Thai Accounting Standard No.31 (revised ) Thai Accounting Standard No.33 (revised ) Thai Accounting Standard No.35 (revised ) Thai Accounting Standard No.39 (revised ) Thai Accounting Standard No.41 (revised ) Thai Accounting Standard No.43 (revised ) Thai Accounting Standard No.49 (revised ) Thai Accounting Standard No.51 (revised ) Cash Flow Statements Leases Inventories Borrowing Costs Presentation of Financial Statements Accounting Policies, Changes in Accounting Estimates and Errors Interim Financial Reporting Business Combinations Construction Contracts Intangible Assets These revised accounting standards are effective for accounting periods beginning on or after January 1, and compliance with these accounting standards does not have significant effect to the consolidated and the Company s financial statements except for as discussed in Note

17 2. Accounting Changes 2.1 Changes in Accounting Policies has chosen to apply Thai Accounting Standard No.43 (revised ) Business Combinations that is effective for accounting periods beginning on or after January 1,. Details are as follows: Goodwill In accordance with this standard, the Company is not allowed to amortize goodwill arising from business combination. A test for impairment is carried out at least once a year or when there is a factor indicating that an investment might be impaired. In case of the carrying amount exceeds its recoverable amount, impairment loss is recognized in statement of income. In addition, goodwill is presented at cost less accumulated impairment losses. has adopted this standard since January 1,. For goodwill recognized prior to that date, the Company applied a prospective method by not amortizing goodwill and testing for impairment instead. As a result, the carrying amount of goodwill as at January 1, was presented with balance carried forward from, amounting to Baht 12, million and was not amortized during this period. On the contrary, amortization of this goodwill in the first quarter of was recognized amounting to Baht million in the consolidated financial statement. Thus, management considered that there was no impairment in this goodwill as at. Negative Goodwill In accordance with this standard, the Company, a buyer, must assess the seller s identification and measurement of assets and liabilities and identifiable contingent liabilities including the exceed reassessment of carrying value in business combination, when buyer s equity net fair value of the cost at acquisition date, the differences will be recognized as revenue in statements of income. has adopted this standard since January 1,, with the prospective requirements. The carry forward of retained earnings as at January 1,, amounting to Baht 5, Baht was adjusted. However, these adjustments in goodwill and negative goodwill did not affect the Company s financial statements. 14

18 2. Accounting Changes 2.2 Correction of Accounting Errors In, the Company has complied with the judgment of the Supreme Administrative Court (the Court) by separating the assets to the Ministry of Finance. However, the Company still has the right to use these assets. made corrections to the accounting errors in the previous year s financial statements, by cancelling the accounting for assets separation and recognizing the right to use assets as intangible asset, leading to, the difference between depreciation expenses of assets and amortization expenses of the right. accounted for this change by retrospectively adjusted the financial statements for the first quarter of that are presented for comparative purposes. The effect of this on the statement of income for the three-month period ended in the consolidated and the Company s financial statements were the same in terms of amounts. The details are as follows: Statement of Income for the three-month period ended Increase in cost of sales and services 8.46 Decrease in selling and administrative expenses 0.72 Decrease in net income Cash and Cash Equivalents Cash and cash equivalents as at and are as follows: Cash on hand Deposits held at call with banks 24, , , , Fixed deposits 4, , , , Treasury bills 1, , , , Promissory notes Bank of Thailand bonds 62, , , , Total 93, , , , Cash and cash equivalents as at mainly bear interest at rates ranging from 0.13% to 3.80% per annum ( : interest rates ranging from 0.13% to 5.20% per annum). 15

19 4. Trade Accounts and Notes Receivable Others, Net Trade accounts and notes receivable others as at and are as follows: Trade accounts receivable 85, , , , Notes receivable 2, , , , Total 87, , , , Less Allowance for doubtful accounts 2, , , , Trade accounts and notes receivable others, net 84, , , , Outstanding trade accounts and notes receivable others as at and can be aged as follows: Current 79, , , , Overdue - Up to 3 months 2, , , , Over 3 6 months 1, , , Over 6 12 months 1, , , , Over 12 months 3, , , , Total 87, , , , Less Allowance for doubtful accounts 2, , , , Trade accounts and notes receivable - others, net 84, , , , Trade accounts and notes receivable others, net as at include receivables from government agencies and state enterprises in the consolidated financial statements amounting to Baht 17, million ( : Baht 28, million), and in the Company s financial statements amounting to Baht 17, million ( : Baht 28, million). 16

20 5. Related Party Transactions The following are significant transactions carried out with related parties: 5.1 Trade accounts receivable related parties as at and Subsidiaries - - 7, , Jointly controlled entities Associates 80, , , , Other related parties 2, , , , Total 83, , , , Less Allowance for doubtful accounts Trade accounts receivable related parties, net 82, , , , Outstanding trade accounts receivable related parties as at and can be aged as follows: Current 78, , , , Overdue - Up to 3 months 4, , Over 3 6 months Over 6 12 months Over 12 months , , Total 83, , , , Less Allowance for doubtful accounts Trade accounts receivable related parties, net 82, , , ,

21 5. Related Party Transactions (Continued) 5.2 Other accounts receivable, advances and short-term loans related parties as at and Other accounts receivable Subsidiaries - - 4, Jointly controlled entities Associates Other related parties , , Less Allowance for doubtful accounts , , Advances Subsidiaries - - 5, Associates Other related parties , Less Allowance for doubtful accounts , Short-term loans Subsidiaries , , Jointly controlled entities - - 1, , Associates , , Total , , , Changes in short-term loans related parties for the three-month period ended are as follows: Balance as at , Receipt from loans granted (757.64) (10,657.64) Balance as at - 17, Short-term loans to related parties are unsecured and bear interest at rates ranging from 4.88% to 7.00% per annum. 18

22 5. Related Party Transactions (Continued) 5.3 Other accounts receivable, advances and long-term loans related parties as at and Other accounts receivable Subsidiaries - - 1, , Associates 1, , , , Less Allowance for doubtful accounts , , , , Advances Subsidiaries Associates Less Allowance for doubtful accounts Long-term loans Subsidiaries - - 6, , Associates 5, , , , , , , , Total 6, , , , Changes in long-term loans related parties for the three-month period ended are as follows: Balance as at 5, , Payment for loans granted - 5, Receipt from loans granted - (760.00) Balance as at 5, , Long-term loans - related parties are unsecured and bear interest at rates ranging from 4.88% to 7.69% per annum. 19

23 5. Related Party Transactions (Continued) 5.4 Trade accounts payable related parties as at and Subsidiaries - - 8, , Jointly controlled entities - - 2, , Associates 38, , , , Other related parties 1, , Total 40, , , , Other accounts payable related parties as at and Subsidiaries Jointly controlled entities Associates Other related parties , , Total , , Other long-term accounts payable related parties as at and Subsidiaries Jointly controlled entities Total

24 5. Related Party Transactions (Continued) 5.7 Revenue and expense transactions carried out with related parties For the three-month periods ended and Revenues Sales: Subsidiaries , , Jointly controlled entities Associates 214, , , , Other related parties 3, , , , Interest income: Subsidiaries Jointly controlled entities Associates Other related parties Dividend income: Subsidiaries - - 3, , Jointly controlled entities Associates - - 1, Other related parties Other income: Subsidiaries Jointly controlled entities Associates 2, , Other related parties Expenses Purchases: Subsidiaries , , Jointly controlled entities - - 6, , Associates 139, , , , Other related parties 3, , Other expenses: Subsidiaries Jointly controlled entities Associates Other related parties Related party transactions as stated above excluded transactions carried out with government agencies and state enterprises. Stipulation prices between the Company and its related parties are based on the normal prices used in the same type of business in transactions with others. Goods purchased from subsidiaries are at normal prices determined by the subsidiaries with reference to the global market prices. 21

25 5. Related Party Transactions (Continued) 5.8 Details of commitments to subsidiaries, jointly controlled entities, associates and other related parties are stated in Note Directors remuneration Directors remuneration for the three-month periods ended and in the consolidated financial statements amounting to Baht million (: Baht million) and in the Company s financial statements amounting to Baht million (: Baht million) comprises directors meeting fees and bonuses Crude oil purchase and sale transactions carried out with related parties without the delivery of products, with the objective of maintaining crude oil reserves, were offset in the financial statements for the three-month periods ended and. Details are as follows: Sales Subsidiaries Associates 7, , Other related parties Purchases Subsidiaries Associates 7, , Other related parties

26 6. Investments in Subsidiaries, Jointly Controlled Entities and Associates 6.1 Investments in Subsidiaries, Jointly Controlled Entities and Associates as at and are as follow: Investments in Subsidiaries , , Investments in Jointly Controlled Entities , , Investments in Associates 203, , , , Total 203, , , , Details of subsidiaries, jointly controlled entities and associates of the Company are as follows: Company Subsidiaries: PTT Exploration and Production Public Co., Ltd. (PTTEP) Country of Incorporation Thailand Business Petroleum exploration and production Shareholding Percentage PTT (Cambodia) Co., Ltd. (PTTCL) Cambodia Oil marketing Subic Bay Energy Co., Ltd. (SBECL) Cayman Islands Oil marketing Retail Business Alliance Co., Ltd. (RBA) Thailand Management service and oil marketing PTT International Trading Pte. Ltd. (PTTT) Singapore International oil trading PTT Natural Gas Distribution Co., Ltd. (PTTNGD) Thailand Natural gas PTT LNG Co., Ltd. (PTTLNG) Thailand Natural gas PTT Polymer Marketing Co., Ltd (PTTPM) Thailand Polymer marketing Energy Complex Co., Ltd. (EnCo) Thailand Commercial PTT Polymer Logistics Co., Ltd. (PTTPL) Thailand Logistics service PTT Retail Business Co., Ltd. (PTTRB) Thailand Management service and oil marketing Combined Heat and Power Producing Co., Ltd. (CHPP) Thailand Generation and supply of electricity and chilled water PTT International Co., Ltd. (PTT INTER) Thailand Petroleum PTT Green Energy Pte. Ltd. (PTTGE) Singapore Petroleum

27 6. Investments in Subsidiaries, Jointly Controlled Entities and Associates (Continued) 6.2 Details of subsidiaries, jointly controlled entities and associates of the Company are as follows: (Continued) Company Jointly controlled entities: Country of Incorporation Business Shareholding Percentage Trans Thai-Malaysia (Thailand) Co., Ltd. (TTM (T)) Trans Thai-Malaysia (Malaysia) Sdn. Bhd. (TTM (M)) District Cooling System and Power Plant Co, Ltd. (DCAP) Thailand Natural gas Malaysia Natural gas Thailand Generation and supply of electricity and chilled water PTT Asahi Chemicals Co., Ltd. (PTTAC) Thailand Petrochemicals HMC Polymers Co., Ltd. (HMC) Thailand Petrochemicals Associates: Thai Oil Public Co., Ltd. (TOP) Thailand Refining Star Petroleum Refining Co., Ltd. (SPRC) Thailand Refining Bangchak Petroleum Public Co., Ltd. (BCP) Thailand Refining Thai Lube Blending Co., Ltd. (TLBC) Thailand Blending and bottling of lube oil Thai Petroleum Pipeline Co., Ltd. (THAPPLINE) Thailand Oil transmission pipeline Petro Asia (Thailand) Co., Ltd. Thailand Oil marketing (PA (Thailand)) Vietnam LPG Co., Ltd. (VLPG) Vietnam Bottling and selling LPG KELOIL-PTT LPG Sdn. Bhd. (KPL) Malaysia Bottling and selling LPG IRPC Public Co., Ltd. (IRPC) Thailand Petrochemicals and refining Independent Power (Thailand) Co., Ltd (IPT) Thailand Electricity generation Thai Oil Power Co., Ltd. (TP) Thailand Generation and supply of electricity PTT Phenol Co., Ltd. (PPCL) Thailand Petrochemicals PTT Chemical Public Co., Ltd. (PTTCH) Thailand Petrochemicals PTT Utility Co., Ltd. (PTTUT) Thailand Generation and supply of electricity steam and water for industry PTT ICT Solutions Co., Ltd. (PTTICT) Thailand Communication and technology service PTT Aromatics and Refining Public Co., Ltd. (PTTAR) NPTC Maintenance & Engineering Services Co., Ltd. (NPTC) Thailand Thailand Petrochemicals and refining Factory maintenance and engineering service

28 6. Investments in Subsidiaries, Jointly Controlled Entities and Associates (Continued) 6.3 Investments accounted for under the equity method in the consolidated financial statements as at and are as follows: Company Associates: Refining Business Group Shareholding percentage Cost method Equity Method Cost method Equity method Dividends for the three-month periods ended March 31 1 TOP , , , , SPRC , , , , , BCP , , , , PTTAR , , , , Oil Business Group 5 THAPPLINE , , TLBC PA (Thailand) VLPG KPL FST Petrochemicals Business Group 11 IRPC , , , , PTTCH , , , , PPCL , , , , NPTC Natural Gas Business Group 15 IPT , , AMATA NGD TP , , , , PTTUT , , , , EMG , , , , Other Business Group 20 PTTICT Total 124, , , , ,

29 6. Investments in Subsidiaries, Jointly Controlled Entities and Associates (Continued) 6.4 Investments accounted for under the cost method in the Company s financial statements as at and : (Continued) Shareholding percentage Cost method Dividends for the three-month periods ended March 31 Subsidiaries: Company 1 PTTEP , , , , PTTT PTTCL SBECL , , PTTNGD PTTLNG PTTPM EnCo RBA PTTPL PTTRB CHPP PTT INTER PTTGE Jointly Controlled Entities: Natural Gas Business Group 15 TTM(T) , , TTM(M) DCAP Petrochemicals Business Group 18 PTTAC 19 HMC , ,

30 6. Investments in Subsidiaries, Jointly Controlled Entities and Associates (Continued) 6.4 Investments accounted for under the cost method in the Company s financial statements as at and are as follows: (Continued) (Continued) Shareholding percentage Cost method Dividends for the three-month periods ended March 31 Company Associates: Refining Business Group 20 TOP SPRC BCP PTTAR Oil Business Group 11, , , , , , , , , THAPPLINE , , TLBC PA (Thailand) VLPG KPL Petrochemicals Business Group - 29 IRPC , , PTTCH , , PPCL , , NPTC Natural Gas Business Group - 33 IPT TP , , PTTUT , , Others Business Group - 36 PTTICT Total 138, , , ,

31 6. Investments in Subsidiaries, Jointly Controlled Entities and Associates (Continued) 6.5 Share of net assets and results of operations from jointly controlled entities which are included in the consolidated financial statements as at and are as follows: Balance Sheets: As at and TTM(T) TTM(M) DCAP PTTAC HMC TTM(T) TTM(M) DCAP PTTAC HMC Current assets 1, , , , Non-current assets 13, , , , Current liabilities (1,660.08) (11.74) (124.23) (3.86) (942.19) (2,316.14) (21.91) (140.26) (2.80) (1,224.90) Non- current liabilities (7,748.41) (515.32) (673.75) - (735.85) (8,302.62) (549.11) (696.50) - (24.35) Net assets 6, , , , Statements of Income: For the three-month periods ended and TTM(T) TTM(M) DCAP PTTAC HMC TTM(T) TTM(M) DCAP PTTAC HMC Income , , Expenses (327.29) (23.10) (135.87) (3.87) (2,015.58) (363.19) (14.96) (140.14) (0.06) (1,821.98) Gain(loss) before taxes (1.26) (3.85) (4.74) (0.04) Income taxes (55.65) - (6.22) - - (61.94) Net income(loss) (1.26) (3.85) (4.74) (0.04)

32 6. Investments in Subsidiaries, Jointly Controlled Entities and Associates (Continued) 6.6 Significant events during the three-month period ended are as follows: PTTEP In the first quarter of, warrants in PTTEP were exercised under the Employee Stock Ownership Program (ESOP) as detailed in Note 15. The effect from dilution of investments amounting to Baht million was recognized as surplus on dilution of investments in subsidiaries and associates in shareholders equity. Hence, as at, the Company s shareholding in PTTEP was 65.72%. PTTCH In the first quarter of, warrants in PTTCH were exercised under the Employee Stock Ownership Program (ESOP) as detailed in Note 15. The effect from dilution of investments amounting to Baht 0.36 million was recognized as surplus on dilution of investments in subsidiaries and associates in shareholders equity. Hence, as at, the Company s shareholding in PTTEP was 49.30%. IRPC In the first quarter of, the Company acquired million additional ordinary shares in IRPC from third parties amounting to Baht 2, million. Goodwill arising from the acquisition was Baht million. Hence, as at, the Company s shareholding in IRPC was 33.69%. PTTRB PTTRB s extraordinary shareholders meeting No. 1/ held on March 6, and No. 2/ held on March 21, passed a resolution to increase the authorized share capital of PTTRB by issuing 50 million ordinary shares at a par value of Baht 100 amounting to Baht 5,000 million. The increase in share capital was registered with the Ministry of Commerce on April 3,. The Company recognized the increase as advance payment for share subscription. 29