km : ptt investment decision processptt.listedcompany.com/misc/presn/20180514-ptt...may 14, 2018...
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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