Petronas Chemicals Group Bhd. · MYX:PCHEM
Petronas Chemicals Group Bhd — JPM ASEAN Energy & Metals (July 2023)
22 slides from Petronas Chemicals Group Bhd's conference presentation, July 2023
Slide 1: JPM ASEAN Energy & Metals
PETRONAS CHEMICALS GROUP BERHAD JPM ASEAN Energy & Metals July 2023
Slide 2: Disclaimer
Disclaimer 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 contained and appearing in this presentation and the as
Slide 3: Table of Content
TABLE OF CONTENT About PCG Performance Highlights Growth Agenda Market Outlook Moving forward - Sustainability
Slide 4: PCG is a leading integrated chemicals player in the region
PCG is a leading integrated chemicals player in the region PCG’s Global Network PCG at a Glance Our Growth Journey 1985 1992-1999 First plant in 1985 ASEAN Bintulu Fertilizer Sdn Bhd Made up of more than First plant in * Commenced production _ at . Gebeng Integrated Petrochemical 80 subsiciaries Bin
Slide 5: 1Q2023 Highlights: Higher share profit from JV & Associates supports improvement in PAT
1Q2023 Highlights : Higher share profit from JV & Associates supports improvement in PAT Operational Excellence 3.01 2.87 o Lower Plant utilisation at 96% due to planned shutdown at PC Ee Aromatics and PC LDPE t > Lower production volume by 5% at 2,870 KMT Commercial Excellence Production Volume Sal
Slide 6: O&D: EBITDA declined quarter-on-quarter due to lower sales volume
O&D: EBITDA declined quarter-on-quarter due to lower sales volume, mainly from ethane-related products 1Q2023 vs 4Q2022 Product Sales Volum: 49 Olefins , Glycols & Derivatives Polymers. Aromatics & MTBE 12022 9402022 #102023 [_y-0-¥ EBITDA 402022 Effect ofnet Costofrevenue Selling Administration Net
Slide 7: F&M: EBITDA impacted by lower spreads and lower sales volumes
F&M: EBITDA impacted by lower spreads and lower sales volumes 1Q2023 vs 4Q2022 oduct Sales Volume 687 581 S35) 606 576 ce 185 202 177 ss TT | Methanol ‘Ammonia Urea 102022 9402022 #102023 (RM Million) (810) (1022 ]{_ 4022 @-0-@ }[{_Y-0-¥ 4.3% 47% EBITDA 402022 Effect of net Cost of revenue Sellin Ad
Slide 8: Specialties: Slight recovery seen in 1Q2023 as inventory destocking comes to a close
Specialties: Slight recovery seen in 1Q2023 as inventory destocking comes toa close although the demand recovery is still weaker than expected for 1H2023 Sales Volume ( 1023 Key highlights Higher revenue q-o-q attributable to increase in end market KSIor id Bhs demand and sales volume EON aad ce Hig
Slide 9: PCG has a clear strategy to grow our specialty chemicals portfolio
PCG has a clear strategy to grow our specialty chemicals portfolio and future- proof the business Peotned strate: ito derivatives, specialty chemicals and soluti: L} gy proof the business Basic Specialty Maximisit Cash Generator Petchem buateiiies Chemicals dwar: Value Chaii = Build Specialty ao. Op
Slide 10: PCG growth projects are in the pipeline, undergoing various stages of execution
PCG growth projects are in the pipeline, undergoing various stages of execution 2-Ethylhexanoic Liquid chemicals Acid 40% distribution in (2-EHAcid) | Indonesia 49% Nitrile Butadiene Latex (NBL) 49% Specialty Ethoxylates & Polyols 50% 2016 2018 2020 Citral, Citronellol & Isononanol L-Menthol (PC INA
Slide 11: Page | 9
o Manufacturer of lube oil additives, silicones and other specialty chemicals Global market leader providing sustainable chemical solutions notably for the Resins & Coatings, Engineered Fluids and Animal Nutrition markets Page | 9 Open
Slide 12: Short-term market outlook
Short-term market outlook O&D: Weak demand recovery amidst additional supply from new capacity addition 150 ol) Forecast 1200 Jul- Sep 900 600 300 0 Jan-22Mar-22May-22 Jul-22 Sep-22Nov-22 Jan-23 Ma —Ethylene ——MEG ——=PE Ethylene: o Ethylene is expected to be stable after derivative units restart, bu
Slide 13: Embedding Sustainability at the Core
Embedding Sustainability at the Core, PCG will continue to focus on Economic, Environmental, Social and Governance (EESG) aligned with 50.30.0 = ko) 50% improvement in cash flows 0 30% revenue by 2030 from non- &\ Net Zero carbon emissions by = from operations by 2025 i traditional business .: 2050
Slide 14: Thank You
THANK YOU
Slide 15: Putting sustainability at the core
Putting sustainability at the co all EE! Business Sustenance & Green Initiatives Environment Stewardship & Resource Efficiency Social Responsibility (a) Human Rights Operational Excellence (s) Employee Well-being & Talent Development (= Social Impact Commercial Excellence ©) Growth Delivery Excellen
Slide 16: Economic: Business sustenance through growth and responsible product solutions
Economic: Business sustenance through growth and responsible product solutions ECONOMIC Business Sustenance & Green Initiatives Operational {Oo} Excellence Commercial Excellence Growth Delivery Excellence Growth Delivery Excellence Product Solutions | Bio-MEG for bio- | | AireBlue for cleaner degrad
Slide 17: o o o
o o o o o Internal Page | iii Open
Slide 18: Social: CSR initiatives reach will be expanded
Social: CSR initiatives reach will be expanded to support our sustainability development SOCIAL Social Responsibility $a Human Rights & Employee well being & talent development e r 6-8 Social Impact Key Hig Extend PCG’s sustainability Agenda to its supply chain Diversity & Inclusion 4 focus areas :
Slide 19: Heavy turnaround activities dominated manufacturing operations in 2022
Heavy turnaround activities dominated manufacturing operations in 2022, plant utilisation to recover in 2023 Group Performance Opera Excellence 022 * Higher maintenance activities compare to 2021 with 4 TA’s and 2 pitstops completed. Plant Utilisation (%) 92% 90% World Class . oo Production & Sales
Slide 20: Page | vi
➢ ➢ ➢ 28.9 • 23.0 19.6 8.3 ➢ 8.1 17.4 7.3 16.4 14.4 6.6 7.0 6.3 ➢ 4.9 4.4 3.5 4.4 ➢ 2.8 1.6 • • Page | vi Open
Slide 21: Commercial Excellence initiatives have given us a strong presence in the region
Commercial Excellence initiatives have given us a strong presence in the region and established us as market leader in Asia Pacific Commercial Excellence * Physical present in Malaysia, Thailand, China, Indonesia, Vietnam, Philippines and India Proximity to key growth markets in Asia has enabled com
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