Petronas Chemicals Group Bhd. · MYX:PCHEM
Petronas Chemicals Group Bhd — Shareholder Meeting (2020)
25 slides from Petronas Chemicals Group Bhd's shareholder meeting presentation, 2020
Slide 1: Annual General Meeting: Financial & Business Review FY2019
© PETRONAS PETRONAS CHEMICALS GROUP BERHAD ANNUAL GENERAL MEETING FINANCIAL & BUSINESS REVIEW FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 Well Positioned. Sustainable Tomorrow
Slide 2: Presentation Outline
Presentation Outline ~J @ 2019 Performance @ Growth Plan - @ Outlook 2020
Slide 3: Bearish global economic growth
Bearish global economic growth GDP Growth Rate (% Change) 6.9 6.9 6.8 6.7 5.4 53 5.0 5.1 2015 2016 2017 2018 2019 —@ China -—®—Southeast Asia —e— World tal Source: IHS, The World Bank & International Monetary Fund (IMF)
Slide 4: Lower petrochemicals prices in 2019
Lower petrochemicals prices in 2019 MEG Price 904 (USD/MT) 851 776 652 575 Methanol Price (USD/MT) ait 337 292 289 246 Urea Price (USD/MT) 285 283 266 o_o = —o— -e ee 2015 2016 2017 2018 2019 ral GC & ; be | Ge IHS, Platts, ICIS, Fertecon, FMB, Profercy, CRU, Argus & Team Analysis
Slide 5: Sustain excellent HSE record
Sustain excellent HSE record Safety Performance (LTIF*) ------------ 0.26 ------------ Industry Benchmark 0.19 os. 0.13 0.0 se 0.08 t 2015 2016 2017 2018 2019 ‘al * Note: Lost Time Injury Frequency 5 Source: |OGP Safety Performance Report
Slide 6: World class Operational Excellence
World class Operational Excellence Plant Utilisation 96% World Class Production Volume (mil tpa) eG 2015 2016 2017 2018 2019 10.4 ral 6
Slide 7: Solid Commercial Excellence
Solid Commercial Excellence Order Fulfillment Reliability 97% 95% Industry Benchmark Sales Volume (mil tpa) 8.1 8.4 7.3 2015 2016 2017 2018 2019 i _ > 4 SS ua | ral S
Slide 8: New specialised formulated products
New specialised formulated products Premium car paint additive High efficacy herbicide aN Emulsion for rc PETRONAS Rubber Fwd, glossy paper oa ee, PETRONAS ; PowerClean™ Superior RS 301 resin for TS 301 bottle cap WS 601 a fe 3] ral
Slide 9: Resilient financial performance amidst challenging market
Resilient financial performance amidst challenging market MEG Price 904 (USD/MT) 851 776 575 Methanol Price (USD/MT) 37 au 292 289 246 Production Volume (mil tpa) 101 10.4 10.4 9.2 —e . nn a & PAT (RM billion) a Be — 2015 2016 2017 2018 2019 4 @EBITDA @ PAT ral 9 Source: IHS, Platts, ICIS, Fertecon,
Slide 10: Maintain minimum 50% dividend payout ratio
Maintain minimum 50% dividend payout ratio Dividend Payout Ratio (% PATANCI) 9) 53.5% 9 50.0% 50.1% 51.9% ° 51.2% —_@— s eo od t Interim Dividend : paid on 13'" Sept 2019 RMO.11 nd Interim Dividend Dividend Payout 2 paid on 27% Mar 2020 RMO.07 (RM Million) Dividend RMO.18 (per ordinary share) . Divi
Slide 11: Embedding sustainability across business activities
Embedding sustainability across business activities Ca Oat Withdrawal ; Intensity ~ 13k passenger ~ water for 1,200 | vehicles off the Olympic-size | road for one year swimming pools: | sk Oy som, Oy ~ enough to power ~ 2.68 kilo tonnes 1.01 mil houses per year waste reduction Internal * Note: Green
Slide 12: Embracing new plastics economy
Embracing new plastics economy “Plastic, Solid waste Chemical Recycling campaign & Sustainability and handling recycling plant “Be Green” programme You” module to 1stin SEA >1000 schools Reached ~ 35,000 SMART system Plastic waste to Waste collected from students chemicals river and coastal sent for
Slide 13: Back-to-School
Back-to-School Internal 13
Slide 14: Recognised locally and internationally
Recognised locally and internationally 17 Responsible Care® Awards Gold for Integrated Reports AA by Australasian Awards Excellence Awards for Asia's Best CEO & CFO (IR) © © © Others: @ Gold for Integrated Reporting and Industry Excellence Award at NACRA @ Industrial Excellence Award on Corporate Go
Slide 15: Presentation Outline: Growth Plan
Presentation Outline e @ Growth Plan Internal < a5)
Slide 16: Continuous growth to maximise value to our shareholders
Continuous growth to maximise value to our shareholders | PCG's | nmi = 2 - Pronged wile ALERT A yun Commenced production in Bintulu, Increased capacity from 21 Sarawak manufacturing plants Production volume Production volume Specialty Chemicals 0.75 mil tpa 14.6* miltpa Basic Chemicals Detivatives
Slide 17: Future-proofing business through growth
Future-proofing business through growth At PIC, Pengerang, Johor Internal 17
Slide 18: Achieved Final Investment Decision in specialty chemicals projects
Achieved 2 Final Investment Decision (FID) in specialty chemicals projects Achievement to Date Sanctioned development & constructions of Butadiene Derivative plant at PIC, Pengerang, Johor Sanctioned development & constructions of Specialty Chemicals plant at KIPC, Terengganu Medical Gloves Personal
Slide 19: First foray into specialty chemicals via M&A
First foray into specialty chemicals via M&A Product Applications Acquisition of Da Vinci Group B.V. (DVG) “ Riad ri _ Widely known as BRB World's largest independent BRB Global Presence v 7 producer and formulator of 7 silicones, lube oil additives and chemicals \ Coatings J BRB International Formu
Slide 20: Presentation Outline: Outlook 2020
Presentation Outline > TS x . on ° 2020 @ Outlook 2020 > 4 Internal
Slide 21: Challenging year amidst market volatility and COVID-19 pandemic
Challenging year amidst market volatility and COVID-19 pandemic GDP Growth Rate MEG Price (% Change) (USD/MT) 6.9 6.8 69 67 776 o—__~__e—_ —e—_¢ 652 Methanol Price (USD/MT) ail 337 292 289 Yo 246 2015 2016 2017 2018 2019 ‘(ER@O20 -0.6 , 70. \ \ 23.0 —® China —e*-Southeast Asia —e— World 2015 2016 20
Slide 22: Ensuring continuous business activities whilst breaking the pandemic chain
Ensuring continuous business activities whilst breaking the pandemic chain Work from 50% Temperature home manning & health screeening Defer plant JCollaboration Maximise Explore ‘L\ turnaround with supp i volume & a ternative customers deliveries markets & new authorities customers 22
Slide 23: Our response to COVID-19
Our response to COVID-19 Community Relief Package 3,000 B40 families Stakeholder Relief Package 300,000 face shield frames Medical Relief Package RM 20 mil* medical equipment & supplies Staff Contribution RM 6.4 mil* monetary donations to NADMA Note: * total PETRONAS contributions
Slide 24: Key priorities for 2020
Key priorities for 2020 CO) Additional EBITDA of Maximising orn 20 mil through cash generator C Cost reduction of ~ RM 300 mil Commercial operation at . Pengerang Petrochemicals Expanding core Complex business Final Investment Decision (FID) of another 2 specialty chemicals projects Construction of
Slide 25: #staysafe #stayathome #kitajagakita
. . #staysafe #stayathome #kitajagakita Internal 25
Petronas Chemicals Group Berhad — Shareholder Meeting (2020) on 6ix