2013 ATPAC Annual MeetingThailand-U.S. Cooperation: From R&D to CommercializationAugust 29 , 2013Bangkok, Thailand

Thailand and S&T Related Venture Capital

Noppawan Tanpipat, Ph.D.Vice President, Innovation Strategy and Partnering PTT Global Chemical Public Company Limited (PTTGC)

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Agenda

Agenda

PTTGC Business Overview A result entity of amalgamation Product portfolio and global business

PTTGC strategic approach to technologies Focus of corporate venture capital in innovation process

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Agenda

Agenda

PTTGC Business Overview PTTGC at a glance Product portfolio and global business

PTTGC strategic approach to technologies Focus of corporate venture capital in innovation process

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ICIS Top 100 Chemical CompaniesRanking of the world’s largest chemical producers

(listing based on 2011 sales)

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PTTGC: The Chemical Flagship of PTT Group

PTT is the national energy company engaged in conducting an integrated petroleum and petrochemicals business with the market capitalization of US$33bn1, ranked as 95th in Fortune 100 company

• Polymer producer with the combined production capacity of 3,482 ktpa and products ranging from HDPE, LLDPE, LDPE, PP, PS and ABS

• 7th largest aromatic producer in Asia with capacity of 3,526ktpa

• First and sole producer of phenol, acetone, ACN ethylene oxide and related products in Thailand

• Business partner with world’s leading companies such as LyondellBasell from Netherlands, Asahi Kasei Chemical from Japan, Sime Darby Plantation from Malaysia, Cargill from the US, and Perstorp from Sweden

THE LARGEST OLEFINS PRODUCER IN THAILAND AND FIFTH IN ASIA

1COUNTRIES OPERATINGPETROCHEMICAL CAPACITY[Million tonnes per annum]

5EMPLOYEE

3531SALES [Billion USD]

18.6*

Note: 1) As of 30 March 2012

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Fully Integrated Petrochemical and Refinery Operations with Diversified Product Portfolio

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Leading chemicals company in South-East Asia with broadest expertise in downstream derivatives

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Diversified Product Portfolio and End Markets

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Agenda

Agenda

PTTGC Business Overview PTTGC at a glance Product portfolio and global business

PTTGC strategic approach to technologies Focus of corporate venture capital in innovation process

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PTTGC Strategic Direction

“To be a Leading Chemical Company for Better Living”

1. Enhancing our core uplift

2. Creating long-term value via HVS growth

3. Emerging into green business models

PTTGC’s Strategies

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Global Business: Asia, Europe and US

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Global Megatrends Impacting Chemical/Plastic Industry

Convenience

Urbanization

Next Billion Customers & Rise of Asian

Demand

New Materials / Substitutes

Energy ConservationWaste

Reduction

Regulations,Environment,

and Health

Monomer Polymerization/Conversion Compounding Processing End Users

“The Trends of Changing World Impact the Plastics Value Chain in Many Aspect.”

Global Warming

Sustainability

Health & wellness

Transportation

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R&D Development Phase & Gap

Source: Modified from BCG Analysis

Science & Innovation

Innovation and emerging technology acquisition arms to PTTCG

PTT Chemical International

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CVC Agenda

MarketCaptured Un-Captured

Existi

ngN

ew

Tech

nolo

gy

Future business growth enabled by

new technology

“Green and Transformative”— CVC as an accelerator to growth beyond current business focus.

Value creation

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S&I Model To Acquire Emerging Technology

Corporate venture capital (CVC) as one of strategic technology investment arms o Strategic benefits

o Open “window on new technology” through venture investments. o Leverage external sources of innovation through contact with “technology-based investment bankers,

entrepreneurs, scientists, deal finders and makers, consultants and network ”.o Create opportunities in joint development and become strategic partners.o Strengthen entrepreneurial companies’ product marketing through the existing corporate’s marketing

experience and contacts.

o Financial benefitso Shorten time and OPEX expenditure in leveraging R&D technology to be commercialized.o Minimize risk and impact from technology failure via indirect investment while managing opportunity of getting

returns on investments upon exit events, such as IPOs or sales to third parties.o Potentially acquire a “right to operate (or produce)” of new and innovative processes (or products) to compete

in their existing market via emerging technology.

Client or stakeholder

views

Researcher interests and

views

Corporate strategy

and priorities

Research TechnologyDevelopment

Prototypeand Trial

Technology Platform

Collaboration and PartneringIn-house

R&D

VCFund

Portfolio Companies

Technology Incubator

Joint Development OpportunityDirect Investment

Indirect Investment

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Unconventional Raw Materials

1800 1850 1900 1950 2000 2050

RenewableResourcesCoal

Natural Gas

Crude Oil

PARADIGMSHIFT?

Source: Adapted from BASF

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Example: Synthetic Biology

Source: Technology Strategy Broad, “A synthetic biology roadmap for the UK”

Synthetic biology: Development of new bio-synthetic route to a wide range of products

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Value Proposition by CVC

Client or stakeholder

views

Researcher interests

and views

Corporate strategy

and priorities

Research TechnologyDevelopment

Prototypeand Trial

Technology Platform

In-house and Collaborative

R&D

CVC Portfolio Companies

Technology Incubator

Indirect Investment

Joint development

Strategic alliances

Shortcut for Risky technology development and Commercialization of new emerging innovation at reduced risk.

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Collaboration & Partnering

University

Government Agency

Industry

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S&I Expansion

Life Science Research Unit

www.pttgcgroup.com 555/1 Energy Complex, Building A, 14th – 18th Floor,

Vibhavadi Rangsit Road, Chatuchak, Bangkok 10900 Thailand.

Telephone : +66 (0) 2265-8400Fax : +66 (0) 2265-8500

Thank You