PETRONAS Chemicals Group Bhd. · MYX:PCHEM
PETRONAS Chemicals Group Bhd — Q2 2019 Earnings Presentation
23 slides from PETRONAS Chemicals Group Bhd's earnings presentation, Aug 13, 2019
Slide 1: Quarterly Analyst Briefing, Quarter Ended 30 June 2019
Cf PETRONAS PETRONAS CHEMICALS GROUP BERHAD QUARTERLY ANALYST BRIEFING QUARTER ENDED 30 JUNE 2019 13 AUGUST 2019 6.00PM — 7.00 PM
Slide 2: Disclaimer
DISCLAIMER PETRONAS Warranties and Exclusion of Liability PETRONAS Chemicals Group Berhad ("PCG"), its subsidiaries and related corporations confirm that care has been taken in ensuring the accuracy and correctness of information, statements, text, articles, data, images and other materials containe
Slide 3: Key Highlights, Performance Highlights, Moving Forward
Cf PETRONAS KEY HIGHLIGHTS PERFORMANCE HIGHLIGHTS MOVING FORWARD Page 2
Slide 4: Key Highlights
PETRONAS KEY HIGHLIGHTS PERFORMANCE HIGHLIGHTS MOVING FORWARD
Slide 5: Continued trade tensions impact growth
Continued trade tensions impact growth © PETRONAS PETROCHEMICAL MARKET SPREADS USD/m 2Q2018 , 3Q 2018 \ 4Q 2018 \ 1Q 2019 , 2Q 2019 400 : : : : 90 _ 350 ; ; 80 = * ] B 5 300 i i 70 g D j H 3 > ; i i i 60 5 $ 250 O&D average spread* i i i 3 § i i i i 50 > a 200 i i i i 6 % 40 2 £ 150 ; ; ; i o € = 7
Slide 6: 1H 2019 Highlights
1H 2019 Highlights Op Cf PETRONAS Plant utilisation (PU) at 99 % * Improved plant performance ¢ Higher ethane feedstock supply Sales volume declined 5% y-o-y ¢ Lower sales volume of Methanol, Aromatics * Inventory build-up anticipating TA > PAT declined >» Lower EBITDA due to; Weaker spreads, higher
Slide 7: Performance Highlights
PETRONAS KEY HIGHLIGHTS PERFORMANCE HIGHLIGHTS MOVING FORWARD
Slide 8: Performance Highlights: Financials
Performance Highlights : Financials Key Financial Indicators 2Q 2019 Year-on-Year 2Q 2019 Quarter-on-Quarter PETRONAS 1H 2019 Year-on-Year Production 2Q 2019 2Q 2019 ra 1H 2019 5,561 t Volume , (000 MTPA) 20 2018 19.2019 | Aas... 1H 2018 5,487 fa Revenue 20 2019 (8%) 20 2019 5% | 1H 2019 one. t (RM
Slide 9: Open Page 6
7,0 00 5,909 6,0 00 5,098 5,0 00 4,0 00 3,0 00 2,051 2,0 00 1,382 1,0 00 0 Open Page 6
Slide 10: Open Page 7
5,000 3,833 4,000 3,344 3,000 2,000 1,657 1,500 1,000 0 Open Page 7
Slide 11: Balance Sheet as at June 2019
Balance Sheet as at 30 June 2019 Open Total Assets (RM million) 37,365 37,872 Others Cash & cash equivalents Trade & other receivables Trade & Other inventories Investment in joint ventures and associates Property, plant and equipment (PPE) As at 31.12.2018 As at 30.06.2019 Total Equity & Liabilitie
Slide 12: Cash Flows as at June 2019
Cash Flows as at 30 June 2019 PETRONAS (RM million) 2,925 (954) i (1,560) 12,329 a ee Cash & cash Cash flow generated Cash flow used in Cash flow (used _ Net increase/(decrease) equivalents at the from operating investing activities in)/generated from due to FX impact beginning of the period activit
Slide 13: Industrial Standard,
25.0 Industrial 100% Standard, 85% 20.0 90% 15.0 80% 70% 10.0 60% 5.0 50% 0.0 Open Page 10
Slide 14: Open Page 11
1400 100% 1200 80% 1000 800 60% 600 40% 400 20% 200 0 0% 300 250 200 150 100 50 0 Open Page 11
Slide 15: 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Open 2Q 2018 3Q
3,000 120% 2,500 100% 2,000 80% 1,939 1,500 1,801 60% 1,635 1,649 800 1,000 1,263 40% 600 400 500 20% 200 0 0% 0 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 800 600 400 200 0 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Open Page 13 Page 12
Slide 16: Performance Highlights: Operational - Projects Updates
Performance Highlights : Operational — Projects Updates © PIC - PETCHEM First Delivery of Polymer Products for Domestic Market AROMA PLANT Nh x SN é citral | menthol | citronellol Open PETRONAS 98.8% completion of PIC-PETCHEM’s overall progress as of June 2019 First shipment of heavy glycols and pol
Slide 17: Open Page 14
103% 95% 94% 95% 79% Open Page 14
Slide 18: Q2 2019 vs Q1 2019 and Q3 2019 Outlook
Q2 2019 Q2 2019 Q2 2019 Q2 2019 (vs Q1 2019) (vs Q1 2019) (vs Q1 2019) (vs Q1 2019) Q3 2019 Q3 2019 Q3 2019 Q3 2019 (Outlook) (Outlook) (Outlook) (Outlook) Open Internal Page 15
Slide 19: Q2 2019 vs Q1 2019 and Q3 2019 Outlook
Q2 2019 Q2 2019 Q2 2019 (vs Q1 2019) (vs Q1 2019) (vs Q1 2019) Q3 2019 Q3 2019 Q3 2019 (Outlook) (Outlook) (Outlook) Open Page 16
Slide 20: Moving Forward
Cf PETRONAS MOVING FORWARD
Slide 21: Moving forward, economic uncertainties negates demand fundamentals
Moving forward, economic uncertainties negates demand fundamentals Geopolitical uncertainty tien? fundamentalsi=+ = remains 7 Conti y ’ ntinued strong rotectionism Open Cf PETRONAS Page 17
Slide 22: Moving Forward...
MOVING FORWARD... ela 1. Uphold HSE as a Priority 2. Sustain world class Operational Excellence 3. Drive Commercial Excellence 4. Operationalise Pengerang Integrated Complex 5. Venture into Specialty & Bio-based Chemicals Cf PETRONAS Page 18
Slide 23: Thank You
Cf PETRONAS THANK YOU For further enquiries please contact us at: PETRONAS Chemicals Group Berhad Level 10, Tower 3, Kuala Lumpur City Centre, 50088 Kuala Lumpur, MALAYSIA petronaschemicals_ir@petronas.com www.petronaschemicals.com
PETRONAS Chemicals Group Berhad — Q2 2019 Earnings Presentation on 6ix