14 พฤษภาคม 2561

KM : PTT Investment Decision Process

เพือ่สือ่ความแกน่กัวเิคราะหแ์ละนกัลงทนุ

น าเสนอโดย คณุศรวีรรณ เอีย่มรุง่โรจน์

รองกรรมการผูจ้ดัการใหญก่ลยทุธอ์งคก์ร

Investment Control and Internal Control Department 1

PTT Investment initiates from Strategic Thinking Session (STS)

BOD ApprovedBudget Review

“Do Now”Best in Class for License to Grow

Last Man Standing

Seed the Options/ Shape the Space

“Design Now”New S-Curve

“Decide Now”Growth withBest in Class

Big Bet

Invested Capital

Time

BAU: Do Now

Expansion: Decide Now

New S-Curve: Design Now

Strategic Direction+

:

:

:

Business Plan

+Budgeting

+PM/RM

Top Down

(TTS)

+Bottom Up

(STS)

BOD ApprovedBusiness Plan &

Budget

BOD ApprovedSTS

Investment Control and Internal Control Department 2

All Investment Budget & Decision Must Be Approved by BOD

Investment Decision Management (IDM)

(2550-2554)

3 Types ofInvestment

Budget Approval PeriodInvestment

Execution Approval

1. Equipment & Spare Parts(ครภุณัฑ)์

• Along with Business Plan (December)

• Midyear Budget Review(June)

Along with Budget Approval

2. Operating CAPEX(แผนงาน)

Along with Budget Approval

3. Investment Projects(โครงการลงทนุ)

Project by Project(must obtain budget approvalif not yet)

All Investment Budget must be approved by the Cabinet through NESDB.

Investment BudgetEquipment & Spare Parts

Operating CAPEX

Investment Projects

Investment Control and Internal Control Department 3

Budget & Execution Approval Process

Investment Decision Management (IDM)

(2550-2554) Execution Approvalby BOD

PTTMCSIMCBUMCSIMBU

BudgetApprovalby BOD

PTTMCCPRCBUMC

• Business Group• Business Unit• Support Function• Business

Development

Budget Approval Process Execution Approval Process

Equipment & Spare PartsOperating CAPEX

Investment Projects

Investment Decision Management (IDM)

(2550-2554) Board Approval

PTTMCCPRCBUMC

• Business Group• Business Unit• Support Function• Business

Development

Budget & Execution Process

Investment Control and Internal Control Department 4

PTT Investment Decision Process Development

1) After IPO - 2549 : Assessment of Investing Management (AIM)

Feasibility Study

PreliminaryStudy

Using Corporate Hurdle Rate for Justification

BUMC PTTMC BOD

Feasibility StudyOPEX Approval

BUMC PTTMC BOD

Execution Approval

Principle Approval

Remark BUMC : Business Unit Management Committee (EVP up)PTTMC : PTT Management Committee (SEVP up)

Investment Control and Internal Control Department 5

PTT Investment Decision Process Development

2) After 2550 - 2554 : Investment Decision Management (IDM)

Apply Corporate Hurdle Rate with Risk Adjustment

Feasibility Study

PreliminaryStudy

BUMC PTTMCBOD

Principle Approval

BUMC PTTMC BOD

Execution Approval

Execution BOD

Post Execution Report

Monitoring

BOD Budget

ApprovalCPC

Feasibility Study OPEX Approval

Remark BUMC : Business Unit Management Committee (EVP up) CPC : Corporate Plan CommitteePTTMC : PTT Management Committee (SEVP up)

Investment Control and Internal Control Department 6

PTT Investment Decision Process Development

3) 2554 Onward : Strategic Investment Management (SIM)(Enforced by Investment Regulation issued by PTT Chairman)

2. Budget Approval Process

1. Investment Planning Process : OPEX Approval for Feasibility Study

CPRC PTTMC BODBUMC

PreliminaryStudy

BUMC PTTMC BOD

Budget Approval Period

CPRC

(5 years CAPEX Plan)

Fund Raising

Plan

Remark BUMC : Business Unit Management Committee (EVP up) CPRC : Corporate Plan and Risk Management CommitteePTTMC : PTT Management Committee (SEVP up) SIMBU : Business Unit Strategic Investment Management Committee SIMC : Strategic Investment Management Committee

Budget Approval Period

Investment Control and Internal Control Department 7

PTT Investment Decision Process Development

3. Investment Approval Process

4. Execution Monitoring Process (Quarterly)

Monitor : Time – Cost - Return

Feasibility Study

SIMC PTTMC BOD

Execution Approval

SIMBU BUMC COO

Project Owner

SIMC PTTMC BOD

SIMBU BUMC COO

Remark BUMC : Business Unit Management Committee (EVP up) CPRC : Corporate Plan and Risk Management CommitteePTTMC : PTT Management Committee (SEVP up) SIMBU : Business Unit Strategic Investment Management Committee SIMC : Strategic Investment Management Committee

3) 2554 Onward : Strategic Investment Management (SIM)(Enforced by Investment Regulation issued by PTT Chairman)

Investment Control and Internal Control Department 8

PTT Investment Decision Process Development

5. Post-Investment Process (within 90 Days after COD)

6. Document Control

Lookup : Lesson Learned

All important documents will be kept in Investment Portal

SIMC PTTMC BODCOOBUMCSIMBU

+

Project Owner

SIMC PTTMC BOD

SIMBU BUMC COO

+ + + +

Remark BUMC : Business Unit Management Committee (EVP up) CPRC : Corporate Plan and Risk Management CommitteePTTMC : PTT Management Committee (SEVP up) SIMBU : Business Unit Strategic Investment Management Committee SIMC : Strategic Investment Management Committee

3) 2554 Onward : Strategic Investment Management (SIM)(Enforced by Investment Regulation issued by PTT Chairman)

Investment Control and Internal Control Department 9

PTT Investment Decision Process Development

7.1) PTT and 100% PTT Group Subsidiary

• Budget and Execution Approval by PTT BOD

• Follow Strategic Investment Management (SIM)

7. PTT Group Investment Governance

7.2) <100% PTT Group Subsidiary

• Govern by Subsidiary BOD nominated by PTT

• Subsidiary BOD nominated by PTT can vote in the BOD meeting after get the approval from PTT as following;

• Investment < 3,000 MB Approved by COO

• Investment 3,000-5,000 MB Approved by PTTMC

• Investment > 5,000 MB Approved by PTT BOD

• Align Investment Process with Strategic Investment Management (SIM)

3) 2554 Onward : Strategic Investment Management (SIM)(Enforced by Investment Regulation issued by PTT Chairman)

Investment Control and Internal Control Department

Align with Strategic Direction (STS Approval)

Detail of execution & capability requirement

▪ Risk Appetite▪ Assess all risks▪ Identify Risk Control / Mitigation Plan

Project management integrity

Identify stakeholder impacts and Mitigation Plan

Financial return analysis (IRR, NPV, Payback)

Appropriate source of fund

Strategic Fit

Execution Capability

Financial Return

Risk Management

Capital Management

Stakeholder Management

Governance Management

1

10

Investment Decision Criteria

2

3

4

5

6

7

Investment Control and Internal Control Department 11