PTT Public Company Limited (PTT) Earnings Call Transcript & Summary

Good morning, analysts, fund managers, executives and PTT staff. My name is Tarinee. Welcome to PTT Analyst Meeting for the fourth quarter of 2024 and performance results of the year. This time, we invite you to meet face-to-face with our team. So allow me to go through today's agenda. The first part, we are going to have a knowledge management session. We are honored by KPMG to discuss latest trends in minimum tax trends. And then we will present 2024 and 4Q performance results presentation followed by Q&A. So allow me to introduce two speakers from KPMG, starting with Khun Abhisit Pinmaneekul, Partnered Head of Tax, KPMG; and Khun Pongsapak Prajakfueangfu, Director, International Tax.

May I -- by way of background, because there is a new law to impact conglomerates with consolidated revenue more than EUR 750 million in 2 out of 4 fiscal years prior to enforcement. Therefore, in Thailand, there are about 20 groups, including PTT to be affected by the law. This law will be enforced overseas and from this year on in Thailand. How it is impacting us. This new law will add tax burden to multinational corporations. Typically, we would pay different forms of tax in our financial statements. With this new separate law, it is on top of the rest of other tax laws. It is called Top-up Tax. Allow me -- typically, we pay annual income tax on the fifth month of the year, we closed the books in December and pay tax in May. However, this law obliges us to make an additional submission first fiscal year 18 months. So we closed book December 2024, pay tax in May. And then we have to submit in June 2027 to pay this Top-up Tax as a result of this new law. And we observe Presidency rule, source rules, earnings in Thailand. But this new law says that for multinationals with effective tax rate below 15% must pay up to 15%. So 15% is the keyword, but this 15% is not from tax calculation divided by before tax rate, no longer fair and square. This 15% is according to a single global benchmark sourced in OECD guidelines. To arrive at this 15%, you must come from the same basis because every country have profits grew plus/minus expenses differently. That is no longer applicable. So the benchmark is streamlined and harmonized. So no need to use the [indiscernible] taxes to divide to arrive at 15% that doesn't work anymore. So that is from the outset. Second, calculating effective tax rate. We do not do it on the basis of consolidated. Some clients, I met the last couple of years, they said, look at consolidated sheet and see 15%. However, it doesn't work like that. There are very complex justification on grouping first jurisdiction, for example, Thailand, if it's 100% wholly owned as one group and then 15% common within the whole stable. But if there are different branches and holdings, grouping to arrive at ETR differs. So to arrive at 15% could involve per group and see if it's 15% in the end or not. So for example, if you have THB 1 billion before tax profit and then 10% tax, it means you have to pay 5% on top of THB 1 billion. That is called Top-up Tax as a result of this new law. Now because PTT Group is the mothership -- as a mothership, you have an additional burden apart from its group in Thailand affected by the Thai law. Importantly, you have to look at your subsidiaries outside Thailand as well, whether similar laws are effective or not surely, Europe, Japan, Australia, Singapore, Hong Kong promoting this law, depending on the year 2024, 2025, the key is if countries with laws effective where PTT operate, you already pay 15% end of story, you just submit 18 months after accounting round and declare you paid and then PTT just submit the proof that you -- we already pay 15% to notify the revenue department. Another point I want to raise. So if your subsidiaries in those countries do not have this law and pay 15%, PTT as flagship has the duty to pay up to 15% according to the new law, 140 countries around the world are using this law. We call it IIR, income inclusion rule. The mother is in charge of other subsidiaries in the stable. And we call it domestic Top-up Tax to reach the 15%. In Thailand, this is enforced this year. So first submission, 18 months, so June 2027, we still have time to sort this out. So today, we will spend about an hour to walk you through the overview and the OECD document is 1,000 pages or so, but we will sensitize you on principles. And then if you have questions. Now I hand over the floor to Khun Pongsapak to explain details.

Good morning, everyone. Khun Abhisit already gave you an overview and analysts, I guess you want to look at impact on financial statements and that is something you're interested in. And there are questions raised in advance, we shall address that. Now you've probably come across various announcements by the Revenue Department, DG, BOI on OECD measures. Thailand is aspiring to join OECD. Domestic Top-up Tax and et cetera are initiated by OECD. And therefore, tax or other nontax initiatives from OECD Thailand has road map to commit to those and enforce, be it domestic law amendments or adopting OECD related. In the tax area, there is base erosion profit shifting of BEPS in PTT's financial statements, you will see BEPS as well. Just to remember, easily OECD wants to help tax authorities worldwide to regulate tax payment amongst multinationals around the world. And hence, BEPS focus on tax on net profit. Tax base is from revenue minus expenses. And expenses could be booked in an exaggerated manner. So OECD wants to address the challenges to make sure that there is no overbooking of expenses. And also the formula of tax base multiplied by tax rate. If we shift profits from high tax country, high tax rate country to lower tax rate country, this is called profit shifting. This is done by MNCs in Europe, America. And hence, BEPS is to be addressed by tax authorities worldwide. So OECD issues, BEPS guideline and Thailand has been complying. However, this law doesn't have significant impact on financial statements disclosure such as Top-up Tax. This is just for tax authorities to determine risk. Please notice 2.0. Now they know better. In the past, there could be disclosure implications. Now BEPS initiative is framework affecting multinational corporations and listed companies, given their scale and the fact that they operate businesses anywhere in the world, they have to pay tax up to jurisdictional benchmarks. However, each country's context differ. Some countries may want to attract foreign investors through tax intensive, therefore, raising to the bottom, that is the trend vice versa. Others that are capital exporting countries, their view is what to do for profits, not to be buried outside. They want to make sure that tax are paid fully. For example, Europe, U.S. in -- well, prior to BEPS 2.0, there was BEPS' action plan. So MNCs in Thailand, including PTT, have complied. The heart of the concept is investment, employment must be compatible with profiting and tax payment, and there is the country-by-country reporting submission. Why these issues matter CBCR. The revenue department that measures have been imposed in calculating additional tax, they will use certain parts of data submitted in their calculation. I saw media news -- so looking at FS and tax payment and whether they pay up to the benchmark or not, that is macro view. However, BEPS look at country-by-country basis, meaning PTT when in the context of BEPS 2.0, they don't look at shareholders or wallet, but it looks at the tax authorities' wallet. So sometimes the rate, you pay tax higher. But if you delve deep if some countries do not -- in some countries, you not pay up to that rate, then you have to top up your tax payment to meet the 15% benchmark. Now when we know that the concept is to even out the different tax regimes. So the preventive measures submission to tax authority may not be enough due to trade war, political dynamics or various factors, there are a lot of discrepancies. And therefore, BEPS 1.0 was deemed inadequate and hence, BEPS 2.0, which features a 2-pillar solution, more than 140 countries worldwide have joined in the previous government, there's a cabinet resolution mentioning BEPS 2.0. You may come across. To be effect that we have considered that Pillar 1 has no issues for Thailand to enforce. However, BEPS 2.0 Top-up Tax just to explain a little bit, pillar 1 is not expected to affect MNCs in Thailand for two reasons. First, it looks at revenue shares EUR 20 billion and profit before tax ratio of 10%, but there are ways to scrutinize the detail. Secondly, to enforce pillar 1 law, every country must ratify in order to change tax collection rules. You may be confused why this is relevant to Thailand. Pillar 1, for pillar 1 to be effective, countries where customers are based in the past, companies from Europe, U.S. If they do online remote services, they do not have physical presence in Thailand. So ordinary people like us, you will see that tax authority have no means to collect tax because these entities make their business and profit from outside the country without physical presence. And that is why they have to design new rules in order to allocate profits to countries where customers are based, but where these entities have no physical presence. And that is why new taxing right, and that is why they have to agree at the convention level that I agree for these countries to collect tax. So the challenge is they take profit as a pool and allocate according to a formula and details are different from tax collection in the past, i.e., investment employment. With this new feature, it is challenging. So pillar 1 is put on [indiscernible], not the main focus for now. Regarding reallocation of profit, pillar 2, actually, Khun Abhisit covered all ground. But simply put, the inclusion. So domestic companies don't count. If you do not have entities, then Top-up Tax is not consideration. How do -- so they will look at accounting authority. For example, a subsidiary that shows up consolidated line by line, then that is deemed MNC. Then we look at revenue in financial statements, whether they need the benchmark or not. The law, the Top-up Tax law in Thailand specifies clearly EUR 750 million up. The specificity of ruling, for example, PTT Group is always included because they look at financial data 2 out of 4 years. So the year in question is qualify to pay Top-up Tax. In Thailand, this law is effective from the start of this year. Globally, Europe, Asia Pacific, many countries such as Vietnam, Australia, that's enforced even from 2024 accounting year, meaning MNC in Thailand, if you have branches overseas in countries where BEPS' law is effective since 2024, you have to look at the obligation, whether you have to pay Top-up Tax in those countries or not. Come 2025, more countries came on-board. So for example, Singapore, Malaysia, Hong Kong, plus-plus. What are issues to consider? Well, I will talk about three things. The first one is that for the Top-up Tax, the minimum rate is 15% looking into each country. For example, in one country, you pay 10%, then you have to pay another 5%. For the calculation, how the tax authorities will know about that. So we have to do our financial statements according to the new law. And in the end, you have to file this, and we call it the GloBe information return. So it's a filing forms apart from the taxation form. And now the Thai revenue department is now designing it. I'm going to skip on this. So in each year, the ETR in each country, is it higher or below than 15%? And are you entitled to pay the Top-up Tax? But you have to prepare yourself as it is the framework for almost all over the world. Now coming to the example. So we look into each country according to the framework, you look at the effective tax rate, the ETR. In short, this is the tax before -- profit before tax. But this is not taken from the financial statements anymore. It is the ETR according to pillar 2. So when you do your financial statements, according to the reporting standard, you might have the only PTT or you have the IFTS or FRS. But in the end, you have the consolidated financial statements. Then you have to submit your taxation, [indiscernible] 50 to the Thai revenue department. That's the second set. And it's according to the tax code. Then in the end, you have the final figures. So the taxation appearing in the financial statements. So that's the second set. Now for the top of tax, that's the third set of taxation. So we do not look into the tax code at all. And for any adjustment, it's according to your filing according to set #3. So it's totally different. When you do the calculation, you do the calculation for the whole country like on the screen, the ultimate parent or the UPE is in Thailand, for example. And then you have your subsidiaries in two countries. The first 2 is in Country A on your left, which has higher tax, ETR more than 15%. And to Country B, you also have two companies. If one of the two has the tax incentive, because you might invest in the BOI industries. If it's over, then 15% according to the statutory tax rate. But the other one, you have the incentive. But all in all, in Country B, you pay lower than 15%, for example, 10%, which means lower than ETR of 15% by 5%. If in Country B, they have pillar 2 and 4, they would say that for the whole group of the country, you have to pay Top-up at 5% for Country B. So for the Top-up Tax, it is the blue legend for in Thailand. We would use the word qualify domestic Top-up Tax or the DMTT. But you have Q, which is qualified. For our Thai law, the calculation would be calculated according to pillar 2 tax enforce all over the world according to OECD. So it means Vietnam, European countries, which has this law effective since 2024, they already passed peer review requirements. In Thailand, we have to do the same thing. And once Thailand is qualified, what would happen? For example, we issued the law in 2024 and then 2025. In Country B, you have to do the Top-up Tax. Then for step 1, as Thailand is the ultimate parent, taxation would be a little bit more complicated in that for the ultimate parent, we have to notify Thai revenue department that they have their subsidiary in overseas. And then in Country B, they are paying lower by 5%. So in Thailand, we have to pay more if Country B doesn't tax it. Now in 2024, for example, Country B doesn't have the law enforce yet. But in Thailand, in 2025, and B still do not enforce the law and Thailand can tax this portion according to the calculation from Country B. But on the screen, Country B enforce this law in 2024, then the number can be offset. So you don't have to pay this Top-up Tax. So tax designing according to OECD, they try to enforce in that for the tax station entities outside of Thailand or outside of the ultimate parent would -- any country would try to enforce the law as soon as possible. Otherwise, the country of the ultimate parent can claim for that Top-up Tax. So that's called the income inclusion rule. So you have to pay the tax in either country. For PTT, the ultimate parent is in Thailand. And according to our Thai Act in 2025, you have to disclose your information and then pay for the lower or the unpaid tax in your -- in other country. Now coming back to 2024 for the calculation, Thailand do not have the law to enforce, but in the subsidiaries, if they are enforced, you have to do the calculation and pay the Top-up Tax. These are quite complicated. The documents required has about 1,000 pages for the calculation. It includes interpretation, the disparities among each country and the country who would like to be the signatory, they have to pass the peer review as well. And because of the calculation, you have to calculate in each layer and in each country. And for your stake holding, is it direct or indirect? It takes time to identify. The accounting tax might be different in each country, and it also has a different fiscal years. But all in all, all of these is ongoing, like Thailand, we also have to follow the rules of OECD. Now coming to the pillar 2 checklist, in each year, the group might have economic activities, expand your businesses, dilute your assets or change in your accounting standards. So this might affect the Top-up Tax in each country, in each year, and it would affect your financial statement differently. For sure, PTT is the MNC, then two, you have to look at your profit. 2 out of 4 years, is it over EUR 750 million? The things that you might not know is that can we just combine all of your financial statements, like if you do the activities in Singapore, can you add it in? No. You have to look into the list, and we would calculate only the companies that falls into the category. And once you know that, then you calculate the figures. And for the calculation, it is quite specific during this transition period for the first 3 years from 2024 to 2026, you might fall under the category of safe harbor. The ETR of 15%, you might not fall under this category at all. But there are a lot more detail for you to consider. But in the end, once you determine which category you are fall into, then we would look into our impact assessment in each layer in -- for the activities in Thailand and overseas. For the investment, you have to look into your M&A plan and its effect. For example, if you invest in one country, you got the tax incentive. But in the end, you might have to pay Top-up Tax. And this would drag down the ETR lower than 15% and you have to plan it very well. So for the step-by-step approach to determine the ETR, PTT have prepared yourself very well. And if you fall under the category, you have 400 and 500 entities, not all the entities would fall under the category. Well, at the end of the year, you might fall into the category. But mainly, we would look into the accounting scope. If you fall under the category in step 1, according to the arrow, you have to consider safe harbor components. Many analysts might not know about this. You just say that, okay, I just take 15%. Well, actually, in -- between the transition period from 2024 to 2026, OECD would like to facilitate everyone. So they would look into the CBCR in the past and the financial statement plus the current tax, and then you can test these figures right away. For the disclosure of the financial statements in this period, either PTT and other groups are listed in the Thai stock market, they would consider the safe harbor component first. If you can pass it, then the Top-up Tax is 0 -- if you pass the test. But if you didn't pass, you have to calculate the ETR, either ETR reaches 15% and then the burden of the taxation in each layer, in each year would fall under which category, which for sure, those countries should enforce the law already. The complexity is that not all the countries enforce the law. So you have to calculate each year differently. I see you nod your head. And I just would like to show this one as an illustration. Like when you do the things, what do you consider? I use different colors of the dots. So you might see that in the financial statement, like PTT as a mother ship company, you consolidate many companies with sole control. So we would calculate from these. For the pink dots, the second set, this is the subsidiaries under PTT umbrellas. You would see which one falls under the category. It's not all the subsidiaries and all the JVs falls under category. You have to calculate the ownership of interest like your right to dividend, cash reserves, whether it passes 50% stake. So the joint venture, we would pick only the one with more than 50% stake. Some might not fall under category. For example, companies in Singapore, which PTT holds less than 50%. So they do not fall under the category. So when we consider about this, you have to be very careful. What doesn't fall into the category is the companies that we have no control, only significant influence like associates or affiliates that you do not have the control. That's the green dots. For the blue dot, it is a small portion of your assets. This one also doesn't fall into the category. So you would see that not all activities or assets would be included. But with the one with the control or the subsidiaries with more than 50% stake. But what is more complex is that when we calculate the ETR in each country, one country might calculate more than 1 ETR. So this is quite complex. But this is OECD's initiatives. In case we have JVs, in Thailand, we have a lot of JVs like on this screen, Singapore is in the same country. According to the law, you have to calculate it differently, separately. So for the MNCs, they have to check whether which activities falls under the category. And then for that company, you have to calculate it separately and then combine it together to determine whether it falls under the category of this new law. To another example with the triangles on the screen, now it is included. In case of joint venture with its branches, it has to be calculated together if it's in the same country, like in Singapore, the joint venture in Singapore, and those joint ventures might have their branches, which they have utmost control. They have consolidated line-by-line financial statements. So [ ECB ] sees that those companies have to include those branches altogether if it is in the same country. So only at this chart, it takes time for you to determine. And if you have your activities in 40, 50 countries, it takes time. For example, at the beginning of the time, you do not have the consolidation at the beginning of the year. But at the end of the year, you have consolidated those activities, then your determination would be much more complex. Now in short, for the safe harbor test, the MNCs, they have to test three things. The first one is that for each country, your revenue, is it less than EUR 10 million? And for the income before tax, is it less than EUR 1 million? You would see the word CBCR revenues and simplified GloBe ecom. In short, it is to consider the revenue that is fall under the category, excluding the dividend from subsidiaries but you have to collect the revenue and income to be adjusted and then test this EUR 10 million and EUR 1 million. So MNCs in Thailand and overseas, if they invest overseas and the portion is small, they would pass this test. So you don't have to disclose the information, do not have to calculate the ETR, do not have to pay the Top-up Tax. Then you come to the second test, the simplified ETR test. So tax -- simplified cover tax divided by simplified global income. And this would be in line with OECD's guideline so you test the number, 15% in 2024, 16% in 2025 and 17% in 2026. So for this group, we know that if they pay high ETR already, they would pass this test. If not, you go to test step 3, the routine profit test. So you compare the profit before tax and the proportion of the employment and investment in qualified assets or we call it substance factor, which one is higher? If substance base income is higher, they have their specific formula calculation, then you pass this test. And for this test, for the country and the company which have the loss and profit before tax is at loss, then you pass this test, you don't have to pay the tax. So ETR is 0%. So this is for the transition period. But if you don't pass this test for the big size activities, they do not pay up to 15%, then they do have to do this calculation. According to the screen. In short, on your left, if you have two entities in Singapore, and then we talk about 2025, Singapore already enforced their laws for QDMTT qualified domestic minimum Top-up Tax. So we have to disclose to the revenue department of Singapore financial statement, you ever submitted. When you submit it to the Thai revenue department, you have to consider income inclusion rule, the IIR. So they would offset these two together. In short, you just divided one by the other. And then you have the ETR, if it's lower than 15%, for example, lowered by 5%, then you would calculate it according to this 5% and then adjust it according to the global pillar 2. When we have these two figures, then the company has to determine the final number in your financial statements. For this screen, when we look at the profit, it starts from your bottom line figure. In short, it is quite similar to the impact of the adjustment of the accounting standards. But this one is according to pillar 2. But in the end, you have the GloBe income. And for the tax, you do not consider it according to the tax code, but it's according to the information you disclosed in your financial statements. What is added is the deferred tax. So at the starting point, it is the tax in your financial statements adjusted by pillar 2. And in the end, I already talked to PTT team, and we would like to stress on this one in that the flow of information collection composed of many components. But all in all, it is the allocation of the tax. Like I have more than two companies in one country. If in the whole country, I pay lower tax, I have to pay Top-up Tax, like, for example, THB 1 million. And then how can you allocate this taxation? Well, we would use the guideline from OECD by proportion. But anyway, in Thailand, we have the law to have mutual agreement and then we just submit the letter to the Thai revenue department, like which company would pay how much. But for the tax burden and the responsibility to disclose information, there are steps according to the domestic law and then you have to disclose this information in the end. Before the Q&A, I just would like to mention the globe election. And election, when the calculation -- when we do the calculation, it might be differently calculated in different country. For the election, you have to adjust the number. If they say that you have to take out some items for the calculation, you can add in and you can subtract it out, but we can choose according to the law. And then you have to do the same for the whole country. Once you did that, it would continue for 5 years. So when you consider the taxation, the company would have to disclose the information to the auditor, like how you calculate it and which position are you taking. But during the transition period, the adjustment items would not be effective. In the end, when you disclose your financial statement, the flow would be like this. Is the whole group subject to pillar 2 top-up taxes? If it's yes, is MNC with the specified turnover amount? If it's not, so no disclosure. But if yes, then are new tax laws enacted in 2024. And we see many and many countries enacted this law. And if it's yes, you have to disclose it. And if no, you have to consider whether your country would enact the law. But if yes, you have to disclose information at what layer according to your tax law. Is it separate financial statement, the purple one or the consolidated financial statement? You have to look at the tax burden in that layer. When we consider the investment structure, we would look through each layer. During the transition of the enactment of the law, it would be different in each country. So in first country, it can be in one layer, but in the other year, it might be different. So for the flagship company, it might be different. But to PTT, there are two components. The first one, PTT, do you have your own burden? And two, does PTT have the responsibility to disclose the consolidated financial statements for their flagship companies below them. As at 2024 and 2025, you would fall under category of both the purple and the blue category. So I'm going to pause here that I collected prior...

There are 4 questions. First, details on how to calculate the contribution by subsidiaries in scope. Second, in case ETR below 15% in -- how to calculate in one country. As I said, you bring them all together in a bunch and then exclude the non-accounting rule entities. And third question, if company in Thailand is in scope for BEPS 2.0 and receive tax incentive resulting in tax liability from [ 20 ] BOI, how BEPS 2.0 law is affected -- will affect it. In considering tax liability, we look at the tax that appears on the statements that are current and deferred and therefore, impact on tax intensive incentive, how is it shown on the financial statement? Surely, it brings down tax rate to below 15%. So related to number 4, so this is no longer a competitive advantage for BOI or tax intensive. Correct. If for tax holidays, for sure, no more. That's why they are shifting the trend to expenditure-based incentive. OECD is conducting consultations around the world regarding tax incentives. For example, I believe BOI has issued an announcement to offer options for in-scope pillar 2 to shift from 0% to 10% and expand the time frame or double the time frame for incentives capped at 10 years. That's a measure under consideration by BOI. Now what if those companies are outside of Peer 2 scope. So they still benefit from BOI incentives. So from [ 20 ], they still enjoy the tax savings in full. Vice versa. Sometimes it's about cash flow amortization or some company with many activities, they get tax incentives, but that is offset by high tax paying venture so they even out. So the answer is case-by-case basis, but the impact for sure, they are there. I will pause for -- so we allow for one live question from the audience.

You can still -- there is one. May I ask from KPMG's experience, what countries are most at risk for pillar 2 in countries with tax incentives, those countries, for sure, try to attract MNCs to stay. What are additional or other incentives they can employ?

First, I answer. So 140 countries around the world, you may think of countries with 0% corporate income tax. The world has changed. All countries, jurisdictions are trying to raise from 0% to 15% UAE, for example, 0 tax in the past. Now, they impose federal tax rate, starting with 9% and islands that were once perceived as tax heaven. In some 15% will be new normal. Investment, when you make investment decision, the baseline is 15%. There will not be significant discrepancy anymore. Even though some countries have base of higher than 15%, they have incentive regimes. For example, in Thailand, our rate is 20%, we have BOI. So new normal is 15% for investment decisions around the world now. Second, it's project by project consideration regarding IRR which rate you use and after projection in the end what impact this will be your -- the second part of your question, I guess, is from investment promotion point of view to attract foreign investors there are 2 perspectives to this. First, global trends would forecast on non-income tax incentives, i.e., infrastructure things that do not affect ETR calculation. Second, financing support, on condition that there are new investments in strategic businesses that fall into the store, i.e., different countries have different attractions, for example, Singapore wants to be financial hub, for example, if you invest in so and so, then you will receive incentives, but it doesn't affect corporate income tax anymore.

Thank you our speakers from KPMG for the knowledge session, let us break for 15 minute before presentation of Q4 and 2024 results. [Break]

[Interpreted] Welcome back to the session presentation of 4Q and 2024 performance results. We have 5 top executives with us. May I introduce Dr. Kongkrapan Intarajang, CEO and President; Khun Pattaralada Sa-Ngasang, CFO. And on hand to join our Q&A session are Khun Wuttikorn Stithit, Chief Operating Officer, Upstream, Petroleum and Gas Business Group; Khun Kris Imsang, Chief Operating Officer, Downstream Petroleum and Gas Business Group; and Dr. Buranin Rattanasombat, COO, New Business and Sustainability. May I give the floor now to CEO, Dr. Kongkrapan.

[Interpreted] Good morning. Today, we are very honored by your full house presence. Many times, we did this online, it is very, very good to be interactive. I look forward to Q&A session. Thank you for making your time. As always, we will cover the following ground, starting with 2024 highlights key drivers, we will update your strategy, share with your outlook guidance and then results in detail of 4Q and 2024. May I start with challenges for 2024. I think most companies experienced the same challenges of the political conflict, global economic uncertainty and Thailand as well and oil and petrochem spread. And Thailand energy policy affected our performance throughout the year. What PTT Group has done our revenue stands at THB 3 trillion net income of THB 91 billion, mainly like before trading has plenty of revenue profitable to some extent. E&P less revenue but high profit distribution as seen on screen. Now what we -- well, we just announced yesterday dividend payment, given market volatility and we have carefully thought about stakeholders' return. So dividend yield of 6% or so payout ratio, 67%. Surely, you will have questions. We will address later. Strategic focus remains hydrocarbon because PTT Group carries the mandate of energy security that we do hand-in-hand with decarbonization. Let me touch on key drivers in 2024, oil price, of course, fluctuated but in the range of $70 gas in the range of $7.8. The -- so what stabilized and decreased last year are spreads, petchem HDPE spreads low price $1,000 low for high-dense, PX $1,000. So it's the low period for petchem. Performance, CFO will explain better than me. So on overview first, our business performance, different business units are quite good. The main driver is upstream business, healthy profits compensating regulatory pressures such as the single pool policy or shortfalls. And the EU's business performance are good to the right. Second item is I just want to show you the main driver, upstream extra items. So they just even each other out plus and minuses. Our divestment exits from certain businesses turn in profit. For example, EGAT's holding of LNG and bonds buyback. These items offset impairment impacts, external factors, FX stock losses or these square out pretty well. Now if we compare '24 to '23, again, lots of help from upstream compensating the down cycle of petchem and energy policy pressure. The important thing that we have done is managing expenses. The whole group, we have managed to shave of THB 10 billion through this OpEx drive. We try to balance divestment, impairment and some one-off items. Highlights for hydrocarbon upstream, PTTEP in Thailand managed to ramp up production according to plan to achieve 800 million staff with new projects in the pipeline. PTTEP with its low unit cost, it is securing new sources, additional volumes, LNG quite 10 million terminal instead of EGAT having to build another authority creating supply guts. We partner together to synergize, optimize our operation and benefit If you recall, there is project 1 PTT Group synergy, import synergies. This, we achieved savings of THB 3 billion amongst our group or similar to PTT, it is revisiting its lifestyle business and exit nonprofitable businesses. On EURO 5, diesel production last year, PTT Group, all of our refinery plant start EURO 5 diesel production. And this contributes to pollution management late last year, GC has become Thailand's first producer of sustainable aviation fuel. We have not yet invested a lot in light of the fact that green products, we have to await demand. So we have a volume to test the market. In Power business, GPSC, has done very well regarding its solar power plant in India, Avaada, a successful venture partners has successfully secured concessions and new demands and PTTEP has invested in securing offshore wind farm. For non-hydrocarbon EV value chain, we have adjusted, revisited our portfolio 4 or 5 years ago, all the major oil companies would test the market and explore the value chain. In light of changes, China, our competitive advantage, so we now in the [indiscernible] we focus on EV charging, given a footprint, but we go as a single brand. So OR would work on mobility. We have an ecosystem to serve customers. Life science has performed very well in generating value. We've divested some of them, and I will talk about life science strategy later. Logistics that is noncore. We have exited them. Train of stuff, which have become commodified and not our expertise, we would focus on logistics that support our businesses only. And lastly, PTT managed OpEx saving of THB 10 billion. This year, we will continue and we will scale up financial excellence. The CFO team has worked very hard. This is a major enabler, our credit ratings and have been good. And we have a special gain on bond buyback. Awards and recognitions, these tell us something, even though we're not award oriented, but these are validation that we are on the right direction, corporate branding at global level, sustainability DJSIs, we continue to be world's #1 set award, SP Global Financial awards and CSR activities, we continue. Strategy is very important. So after shifting adjusting we grow alongside sustainably in Thailand and globally. The strategies we have implemented what we have achieved and how we've adjusted. Overall, we execute according to plan and actually ahead of plan. The big picture is growth. We must grow appropriately generating a solid profit stability alongside ESG emissions, reduction ESGs. The business that PTT Group does is connected to GHG, if we can continue to serve energy security, pursue our expertise with good growth prospects, and we have to invest in decarbonization because it justifies our business. Let's recap a little bit upstream PTTEP sort of like Trump, it has to find more and more, again, hand-in-hand with decarbonization while keeping unit cost competitive because exploration and decommissioning are capital-intensive. So PTTEP has fared well, very well. And E&P focuses on areas closer to home. This is very important, Myanmar and Malaysia. Malaysia has additional prospects and a little further afield, Middle East, where costs are relatively cheaper. So that diversification of PTTEP's E&P portfolio and decarbonization is implemented across PTT Group. Gas cost has to be competitive and working closely with the government advocacy with regulators. We are very active on that front and it is looking good. So the upper part in blue is strategy. We engaged with Ministry of Energy, ERC for core benefits. LNG is very important as planned this year. Key stakeholder agencies are active now, both upstream and downstream, collaborating. Well, Thailand import a lot of LNG, we have base load of PTT and others, and PTT has apart from shipping license for domestic use, it can trade within the region. It is impossible for everyone to build big hub. So now Thailand, Malaysia, Indonesia have enough demand. CLMV, whose market size are smaller. This can add value to LNG. So according to plan, we engaged consultants to come up with benchmarks to pave the way for value creation. Now power pillar GPSC has 2 mandates on reliability for PTT Group strategy. It must be competitive, offering reliability and efficiency, and it is the focal point for PTT Group's decarbonization. Other subsidiaries, GC, IRPC, Thai Oil and et cetera, they do not have to do it separately. GPSC is a common platform. So both phasing out coal, adding more gas, hydrogen SMR. This is GPSC's mandate. Outside of Thailand renewables, we see high growth opportunity and value generation. According to plan, also renewables and decarbonization this year, we will see solid development. Downstream, petchem and refinery as well, last year, we talked about reshaping in light of glut and China from demand source to a competitor, we have to adjust. Now we can reaffirm the following: First, PTT will be the major shareholder as flagship, but we will find a strong partner. Strong means having competitive feedstock, having interesting markets or having technologies to enhance us. So the partner must make us better. If not better, we won't do it. Second, PTT must hold controlling state in order to strengthen our value chain. This is a typical approach amongst multiple firms around the world. Trading is at the core of us, expanding to LNG, our P1 project inbound, outbound, value enhancing last year, 3 billion. And this year, it must be in that order of magnitude, D1 into domestic. So we will level up our group synergy. OR, the policy is aligned, OR must be a mobility partner, shrinking businesses, OR must regain its market share in oil. It must have strategy and value proposition to regain those market share supplemented by non-oil businesses. The portfolio is more or less similar to PTT. Anything that can be clearer and exit nonprofitable ventures with courage. Non-hydrocarbon value chain, we've revisited, and we found that we must retreat and others, we have to speed up. For example, charging, we expand and -- so we will funnel down to one best and expand. There is restructuring work going on. Horizon Plus partner would be better than us. So we decreased from 60 to 40 and we would gain cash back of about THB 4 billion. This is underway, and we can monetize some non-hydrocarbon entities. Logistics and infrastructure. We have to take asset-light approach. Whatever we do must generate more value than holding big assets. We give up on trains, noncore, while we invested not too much. However, ports, tanks, LNG-related or extension strengthening of petchems, we invest, we optimize, we expand or even looking for new partners. Life science has been going well. It's good investment, but we must be aware that we -- this is not PTT's expertise. So we have to structure it in such a way that we find investor. With this area of expertise, they could be financial investors that well versed in this business and find experts to run. And the goal is for this brand business to be self-funding and testing business cases, engaging bank investors and strong partners. This is according to plan and in process. And PTT's focus on oil and gas petchems. And as decarbonization continues, initially, we do it on our own by using clean fuel and working with our own plants. But in mid to long term, we need hydrogen. This is big scale, not car charging and CCS. With our CCS industry in Thailand, cement, electricity, without these, Thailand cannot meet its national commitment for 2050. Over short and midterm PTT Group has to have its own story short term, something immediate, not capital intensive, yielding results and EBITDA lift. We must except that we live in amidst volatility, policy risk, geopolitical risks to invest mega money to build a factory for 4 years and the landscape could turn upside down over the next 4 years. That kind of undertaking tax a lot of consideration. So we set that aside. What we can do on our own? Well, basically no regrets, no-brainer, we restructure. Non-hydrocarbon is not exactly the work what used to be super profitable in the past, and we must exit, we have to do so and divestment gives us cash reserves to invest in something else we should be doing. Further to P1, we implement D1. So we set the target of THB 3.3 billion within 3 years. Now we have a name for operational excellence. We call it Mission X, similar to Everest or Project MAX for GC. This is a group-wide target over the next 3 years EBITDA uplift, PTT Group, 10 billion and flagship combined 20. So the whole of PTT Group, 30 billion. Digital transformation, the amount of money may not sound big, but we focus on infrastructure like cloud strategy, cyber data center all things digital to a quick uplift our workforce for this as well. So these for issues for short-term priorities do not involve a lot of money, its efforts. So this is self-pay. Then medium term, by next year, more clarity will emerge on reshaping refinery and petchems. Many ask about mergers, acquisitions, what you read in the midyear, not correct. We are talking to partners. We cannot disclose. So only 3 issues. Our feedstock strength, market and technology and PTT holds controlling stake. LNG hub combination of investments to build customer base, ability to trade, ability to -- well, switch cargo and flexibility. LNG import accounts for 35% and increasing going forward. And as key player, we must add value. Coming to the outlook. Just in brief, it would keep the same like this, either for the international policy, the energy transition is going to be there for sure, but either quick or slow, it depends on many components like renewable energy, it would be here. But for the consensus last year, gas is transitional fuel, but now it's more solid. Gas is going to be a destination fuel. So we would see more and more CCS and more gas as a fuel. But also, we have to take care of the cut down on [GSG]. Geopolitics also is important. We have to be balanced our stakeholders, dividend payment, then we have to refocus our businesses in the future while balancing our stakeholders' interest. Last year, when we launched our strategies, last year is our -- the year that we adjusted our portfolio, which one we would select, which one we would exit. Now we are here towards 2025, we will focus on our growth, profitable investments, and we add stability in, in the energy sector, it is necessary and it is lucrative. But when we invest, we have to balance with our transformation either for operational excellence with exact numbers, the adjustment of our portfolio. This can help us to derisk and stabilize our business. From our perspective, the upside of our benefits and the downsize of the risk, it is not balanced yet. We have capital. We have the tool so we invest, but we have to be very careful. Stability is important, while growth is going on. Dividend is on, but we have to derisk and stabilize our business so that we pursue with our smart investment. We have to keep our investment, but we have to be very careful to make sure that we have our customer base and be more careful. This one is the integration of sustainability into our businesses, decarbonization step-by-step compare and balance between cost and benefits. And this year, GDP, we all know the figures. Gas is a little bit up at JKM, LNG, it's going to be upwards, but we have to wait for the promotion of export from the U.S., which would be impacting. One school says that it's going to be higher and you can export, but support supply will be more as there will be more exports from the U.S. Coming to oil, it still remain the same. GRM is down compared to last year because of demand and supply change. Petchem remain -- still remain the same. Some products would be better like aromatics, but this is temporary because of the backdrop, it's still oversupply and economic demand might not be much better. Business outlook, upstream E&P volume increase, and this would be aligned with PTTEP. The unit cost can be maintained. The price would be linked to oil price. Selling price would be down a bit following oil price that volume will be up and we would maintain the competitive unit cost. For the gas, GSPC's e-rate improved. For the terminal, reserve volume of LNG pipeline would be better. But for the gas cost, if the KM price is up this would impact the gas cost. For the downstream petchem, product spreads remain the same. Utilization slightly increased in Olefins group. Refinery, there would be the turnaround of Thai Oil. So U rate would be lower and GRM would be softened. Retail, a target of market share and value proposition, it is the mandate of PTTOR. Non-oil, they are quite successful at a certain rate, the 60% is from the oil. So we have to maintain the improvement of sales volume. Power it's recovered according to electricity consumption, but coal cost, it's on a downward trend. Last, science, steady growth on sales volume in Asia and the U.S. So that's all for me. So [Foreign Language] for the performance. Thank you very much. Well, this is the fiscal meeting, so we would take time to talk about our performance and then the floor will be open for all the analysts and the financial institutions. And also from the audience, now to the macro view to the far right, said that we still can keep THB 90 million, THB 90 billion, and this is quite strong. Why compared to the past year, there are many external factors. Let me still can keep it up. And then our net income stood at THB 90 billion compared to 2023, that is THB 100 million something, but that is with many supporting factors like FX gain. So to the revenue, it's reflected on gas price and oil price, feedstock price is down a bit. But for the total production and sales, it's up. EBITDA is quite interesting in that our EBITDA stood at almost THB 400 billion. So it is quite stable. To the box down below, this is not just flat, but because of good management. For the negative factor, we try to offset it, like our internal savings upstream, either gas, L&D price drop. And for E&P, we have higher volume of sales. So this helps offset the negative impact in the downstream like petrochemical businesses. And we also have to help ourselves to cut down the OpEx in the whole group, either and other flagship companies. So you see the cut down of THB 13 billion to THB 14 billion. And also for the nonrecurring items, the negative side is impairment from many companies like petchem companies or retail companies for PTTEP. So we manage the timing to offset some assets like LNG terminal, like Avaada, which is in Europe, and it's not our target asset. So all in all, it's a risk management, how you can manage the FX fluctuation and high interest rates. And then we do -- we did also the bond buyback, which can help offset the negative impacts. So that's why we can have our NI at THB 90 billion. This is the waterfall from 2023 to 2024. On top, we see the change from 2023, excluding the nonrecurring items, it's down from THB 111 million to THB 94 billion. So that's 15% down. Down below is the details. I'm going to pick on some. On your left, you would see PTT at THB 24 billion, the blue one, so it's down by a little bit with the subsidies according to the energy policy, but it's offset by lower LNG price. So PTTEP stood out with increased sales volume, P&R petchem is oversupply in the region. So it's reporting 6,000 and negative to PTT. Oil retail, it's down by a little bit, but it's going to be up by this year. For power and non-hydrocarbon, special profit is up so it's about [3,000 -- THB 3 billion]. This is mainly with PTT LNG and PTT trading, which is still remain the same. Now coming into details, it's the contribution. PTTEP contribute a lot to the THB 90 billion. And PTT from GSP and PTTLNG including trading. Last year, there was a lot of pressure, but it's waiting to recover. Along the line, you see a lot of red portion from stock loss, which increased a little bit with the price of an inventory down. For stock loss, OpEx is down by 5%, that's THB 5 billion already. But we see the end number, not so bad offset by some items. Depreciation DD&A is down with some assets, accumulated DD&A resulted in this and also offset with all items, it's recorded at minus THB 12 billion. Interest and CIT here is quite ordinary the net income is down, then CIT expenses is down. To the right, CEO previously told us about this break down, we see THB 101 billion, but deducted with Singapore and shortfall extra items. We have divestment gain and 1 buyback deducted by impairment loss. But with our management of FX gain and stock loss, all the things offset each other, and we stood our NI at THB 90 billion. Before going to by sector, we would see that the revenues coming from downstream, P3 trading at the margin EBITDA upstream contribute a lot followed by downstream and non-hydrocarbon business. Now coming to each segment. Key message is that for gas business, NG price changing for gas prices down, but the volume is increase or decrease according to each business. LNG, NGV is down a little bit. But E&P in Q1 increased -- increasing GSP. For free gas price is a little bit up because at some times, petchem increased utilization rate, GSP sales increased by around 3% this year. For the gas business, EBITDA is down by a little bit due to negative external factors. It's down by 5% at THB 62 billion. So it's doing okay, considering all the negative factors. Trading business due to lower oil price of narrow product spread and lower earnings, it's down by a little bit. Now coming to financial position. Total assets of THB 3.46 trillion. It's down a little bit because commodity price is down and working capital is then down. Cash for the whole group, it's THB 451 billion. Total liabilities is down by a little bit because we try to control the loans. So we try to pay back in order to keep the good ratios. So all in all, for the whole group, the ratio is quite good, and the ratings is quite good, both from Moody's, S&P Global and Fitch Ratings. So debt to EBITDA is at 1.65, special is 2. So the balance sheet is quite strong, and we take care of all of our subsidiaries like the extension of feedback payment from 30 days to 60 days for some companies. So we don't use our internal liquidity because we use the LC from the bank to back up the finance. So it's cheaper if our subsidiaries take the loans themselves. Now to the consolidated cash flow from THB 451 billion, about THB 100 billion belongs to PTT. So during the year, operating is THB 370 billion. For the expenditures, our subsidiaries like PTTEP, GPSC or Thai Oil may have their pending investments, so that's THB 180 billion. And for financing, we paid dividend, dividend paid for the whole group. That's about THB 80 billion paying to our investors and then we pay for short and long-term loans. So still we are strong at THB 451 billion and THB 100 billion belongs to PTT. So our subsidiaries, they have about THB 30 billion each. So we have no problem with liquidity. Now coming to the dividend policy, CEO previously mentioned that we stepped up our DPS, dividend per share from THB 2 from 2021 to 2023, except the year of the COVID pandemic. We paid THB 2.1 for 2024, following many factors. First of all, we look at the total shareholder return compared to the yield alternative investment of investors like long-term investments in overseas. And two, we look at our internal factors. Are we strong enough financially not only 1 year, but 5 years back, so we think looking 5 years forward, the status of PTT and PTT Group is still strong, and we can allocate our return to take care of this dividend payment at THB 2 and THB 10. So we would give the message that our businesses is strong for the whole group, and then we just announced the dividend payment yesterday. So payout ratio is 67%. So we look not only the absolute number and the yield and the payout ratio, but we look after all the components so that we can become the investment choice for our investors. Let's take a look at CapEx. We notified the stock market in December. So this is PTT and its wholly owned subsidiary. So next year, CapEx is about THB 25 billion and then scaling down new growth, as CEO mentioned, we are studying -- excluding 2 hydrocarbon growth, we are still pursuing. Second, decarbonization. We are closely monitoring the trend. Looking at our cash flow capability, we have enough in terms of strong balance sheet and ability to generate EBITDA per year. So 5 years, about THB 54 billion. Key investment highlights that I share with investors. First, PTT as national oil company, well-diversified portfolio. Last year, upstream can offset downstream pressure internal control risk management, investors really like this. Secondly, looking at track record, cash position, credit ratings, the whole group are solid. Third, looking back, we paid a dividend of about 5% to 6%, now 6.6% due to very low undervalued share price. Four and five, so Thai market very, very eager asking a lot of questions about good governance and brand reputation. We cannot predict 100%. That would be news every once in a while, but we try at best, transparency and disclosure in order to reassure investors about CG and sustainability. CEO already mentioned that we study across the group on green business, decarbonization as a business. So from short term, medium term, long term, why PTT? This is the message we communicate with investors. So that's all the presentation. I would like to open the floor for Q&A. [Statements in English on this transcript were spoken by an interpreter present on the live call.]