Petronas Chemicals Group Bhd. · MYX:PCHEM
Petronas Chemicals Group Bhd — Investor Presentation (May 2023)
47 slides from Petronas Chemicals Group Bhd's investor presentation, May 8, 2023
Slide 1: Knowledge Sharing: Specialty Chemicals
Cf PETRONAS PETRONAS Chemicals Group Berhad Knowledge Sharing : Specialty Chemicals se eo 3@ 8 May 2023
Slide 2: Speakers
Dr. DEBBIE CHIU HARDEEP PARMAR RALPH PINCKAERS IB JENSEN AZLI ISHAK Open 2
Slide 3: 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 4: PCG Specialty Chemicals Business and Growth Strategy
PCG Specialty Chemicals Business and Growth Strategy by: Dr. Debbie Chiu
Slide 5: 2-prong growth strategy to futureproof the business
PCG has embarked on a 2-prong growth strategy to futureproof the business via 3 growth levers 2-Pronged strategy Basic Specialty Petchem Derivatives Chemicals Maximising Cash Generator || Business 1. Sustain strength in basic petrochemicals 2. Selectively diversify into derivatives, specialty chemic
Slide 6: Post BRB acquisition, pursuit of a sizeable specialty platform
Post BRB acquisition, PCG has intensified pursuit for a sizeable platform guided by identified specialty pathways ‘) B RB Post Merger d lame Yr. Consistent growth UJ Integration Phase since acquisition = Specialty chemicals pathways Ey] Feed a EI Food & Nutrition Ey Agricutture a casa (q MRBQSEE Foo
Slide 7: New Specialty Chemicals Division
To manage the acquired Specialty Chemicals businesses effectively, PCG has established a new business division Specialty Chemicals Division Drive PCG’s Specialty Chemicals Business Performance and Strategy ©) BRB [@) Perstorp
Slide 8: PCG Specialties at a Glance
PCG Specialties at a Glance PCG Specialties Focused Segments PCG Specialties 2022 PCG Specialties Worldwide Resin & . TEs Coatings ~RM 8.2 bil Revenue _ <r a. Fluids ~RM 1.1 bil -_ b, uF 2 Ariat (13.5%) . EBITDA (Margin) Advanced ~50% F Silicones of Sales from Leading -_ Market Positions BB Additive
Slide 9: Stabilizing Perstorp and growing the Specialty Chemicals platform
We are focused on stabilizing the Perstorp business amidst the challenging environment and charting the growth of our Specialty Chemicals platform Stabilize the business and Accelerate growth and P : aye ‘ Build for the future enhance the operations capitalize on the partnership Sy Ys Rod Qo. cox<OR
Slide 10: Specialty Chemicals as a distinct new business area
Specialty Chemicals will become a distinct new business area for PCG with different characteristics / ILLUSTRATIVE EBITDA growth Accelerate growth & capitalize on the partnership . tes . Build for the future Diversify into specialty Integrate further . co, Build on capabilities Margin maximization C
Slide 11: Chemical clusters and specialty chemicals space
pppen Chemical clusters xo) Ro RS J xe Or oe? ST gs RS oom oo Oo ty chemicals space Ko e & RS @ “ 4% os 5 ee ROS eet & &S iS; rr we os NG PE BEF I pA TooHy PF” eo _ eM eM RO ve go" \ Ks BO od SPO WSO fon ae 98 w RE ok OF WT ge Potential portfolio plays and strategic developments evaluated along seve
Slide 12: Value chain for Pentaerythritol in Paints and Coatings
Illustrative value chain for Pentaerythritol (Penta) in Paints and Coatings Basic Chemicals Key Ingredients Coating Formulators 9 Celanese ‘The chemistry inside innovation’ methan Sj the pover taghty lyondellbasell i) tut I 6 [)Perstorp Daf aie ARKEMA VONIK SHERWIN Wiuams. Gs 6 EOTUN om CMs Raw Feed
Slide 13: Value chain for Silicones in Personal Care
Illustrative value chain for Silicones in Personal Care <> (tthe, @ EVONIK i) LOREAL Wyncae Shincksu innospec>> in) ite Beiersdorf @Elkem SIBRB Elkem BRB Qsavantor SIBRB Amway Upstream Downstream Formulated Intermediates Intermediates Systems End Products Raw Materials Linear Siloxanes bade Rasen il
Slide 14: Combined capabilities under one roof for sustainable growth
Moving forward, PCG Specialty Chemicals will continue to drive the combined capabilities under one roof to deliver sustainable growth ‘ ben @ : : Harness synergies from Enhance commercial excellence acquisition and integration and operational excellence for within PCG the long run PCG Specialty Chem
Slide 15: BRB Business Overview and Introduction
BRB Business Overview and Introduction “we oe by: Ralph Pinckaers . ‘eo
Slide 16: Overview of BRB
Overview of BRB BRB was founded in 1981 Over 4 O O oO Headquarters in the Netherlands Do employees Saar ' Independent manufacturer of lube oil —™ additives, silicones and other specialty j New products chemicals launched in K=— 2022 locations Asubsidary of & 1 6 worldwide PETRONAS Chemicals Group Be
Slide 17: BRB global locations
Viscotech® Plant Production Germany (JV) Viscotech® Plant Production Germany (JV) BRB CEE CSL Silicones BRB International, (Head Office) BRB Qingdao BRB Korea BRB UK BRB Turkey BRB North America, Inc. BRB Hong Kong BRB Malaysia BRB South America, Inc. BRB Dubai BRB Singapore Viscotech® Plant Product
Slide 18: PETRONAS Chemicals Group Berhad business units
PETRONAS CHEMICALS GROUP BERHAD Business Unit Business Unit Silicones Lube oil Additives & Chemicals Open 18
Slide 19: BRB Silicones
BRB Silicones, a business unit of BRB International BV, is a producer of specialty silicones like emulsions, antifoams, water repellants, elastomers, lubricants, silanes, resins, silicone polyethers, dimethicone & cyclomethicone blends, cross polymers and many more customised products. BRB Silicones
Slide 20: Silicones outgrow most parent markets
Silicones outgrow most of their parent markets and are also addressing key sustainability trends Growth by end-market and segment [CAGR %, 2021-2030] Key end-markets o * a a ea 4 ] ao hh & + 7.8% i 68% 7.1% . . . . 4.1% CAGR . 4.1% 2021-2030 x Be! o “0.1% | Wii Eleevouies Energy Pulp& Paper Textiles
Slide 21: Silicones Product Lines and Key Markets
Silicones Product Lines and Key Markets Product Lines Silicones Intermediates Functional Silicones Fluids Silanes Silicone Emulsions Antifoams Silicone Resins Plastic, Rubber, Composites, and Silicone Elastomers Industrial Release Water Treatment
Slide 22: Personal Care: The Power of Smart Ingredients
Personal Care — The Power of Smart Ingredients Color Skin Cosmetics Care 1" Soft & silky feel, enhance H air Smooth & silky feel, spreading, emolliency, long moisturizing, long lasting, lasting and transfer resistant. enhanced spreading and ca re water resistant. Soft & silky feel, shine enhanced co
Slide 23: Lube Oil Additives & Chemicals Portfolio
1icals (LAC) Portfolio Facilitates additives and lubricating oils used for automotive and industrial equipment to operate better and extend the lifecycle. Formulate and manufacture additives that improve the performance of lubricants and fuels. Registered trademarks: + Petrolad® + Viscotech®
Slide 24: Lube oil Additives & Chemicals Product Lines and Key Markets
Lube oil Additives & Chemicals Product Lines and Key Markets Viscosity Modifiers on Addie Automotive Engine Oil Additives Drive Line Additives Hydraulic Additives Fuel Additives . Industrial Tractor Oil Additives Finished and Specialty Products Sulfonates, Tackifiers & Others Coolants Off-road Scree
Slide 25: Applications in automotives
Applications in automotives Rmine Rear axle fh od Engine oll Additives Viscosity modifier morut Fuel additives ATF DRAIVER DEXRON IID MOTUL 8100 X-CLEAN+ 5W-30 > Volvo Penta Coolant Ready Mixed Transmission (Gear box) Automatic transmission additives Manual transmission additives Steering rod Total
Slide 26: Growth Journey with PCG thus far
Growth Journey with PCG thus far oO New blending facility for silicones business in Gebeng, Pahang operational in Dec 2021 Strengthen BRB's offering in three product portfolios - silicone gum blend, silicone antifoam and silicone emulsion Strategically located in the vicinity of PCG's petrochemical
Slide 27: Perstorp Business Overview and Introduction
Perstorp Business Overview and Introduction “we ee by: Ib Jensen : .
Slide 28: Perstorp in Brief
Perstorp in Brief [)Perstorp World leader in several sectors of the specialty chemicals market No. 1 a 2 . . . . ition i Pioneer in formalin chemistry, plastics and surface materials Bata. ct portfolio Present in 25 countries and production plants in Europe, Asia and North America Top 3 position in
Slide 29: Perstorp global footprint
22 7 9 4 8 3 4 1 5 5 1 21 23 13 2 14 3 8 7 6 17 16 21 20 19 12 15 24 11 18 10 Open 29
Slide 30: Focused Value Generation
Focused Value Generation Moving Downstream - Growth Investments in 4 Prioritized Market Segments GROWTH DRIVERS TARGETS * Grow core volumes well above GDP over acycle Improve EBITDA margin back to above Innovation focused to address customer needs in 15% the prioritized market segments Growth invest
Slide 31: Our market segments
Our market segments
Slide 32: Open
Open 32
Slide 33: Perstorp products in a new car
[)Perstorp Did you know that there are more than 15 kg of Perstorp products in anew Car? Rails Seat frames Leather seats Dashboard Interior parts TMP, Neo Bis-MPA™/DMPA®, Ymer™, p Bis-MPA™/DMPA®, Ymer™, 1 ™ Boltorn™, Sodium formate, Emoltene™ 100, Holtac™, Allyl Oxymer™, Holtac™, Emoltene™ Window tr
Slide 34: European Coatings Show customer event
Recently at the European Coatings Show, hosted a customer event in coordination with Arkema and participated at their event • • • • • • • Open 34
Slide 35: Engineered Fluids
Engineered Fluids Essential intermediates ester lubricant base stock Working with Perstorp, you will get a one-stop shop for high quality building blocks for polyol ester base stock. Our Polyol portfolio is second to none and we are the only supplier offering a complete range to choose from Key Sub-
Slide 36: Advanced Materials
Advanced Materials Creating materials that advance everyday life Perstorp provides focused and innovative chemistry, developed and manufactured for the plastic industry in partnership with formulators, converters and customers. The dedication to produce future- proof, safe, sustainable and high-perf
Slide 37: Animal Nutrition
fppen nal Nutrition Perstorp is a specialist in organic acid-based solutions for the agricultural industry, with a history dating back to the 1960's. We produce several commonly used organic acids. Our team of feed specialists developed them into effective solutions that are easy to work with. Impro
Slide 38: A chemical company with care: Our environmental journey
A chemical company with care: Our environmental journey 3 > Start delivering Biologic district heating to Shift from oil to Sustainable Forrest Ambition set wastewater Bio fueled Perstorp village and natural gas in chemistry chemistry Finite Material Science-based treatment plant power plant Stenung
Slide 39: Finite Material Neutral
materials Our guiding star and long-term ambition since 2017 Finite Material Neutral e.g. shifting all raw materials and energy globally to renewable or recycled.
Slide 40: Sustainability approach
[)Perstorp Sustainability approach y Pro-Environment Solutions Reducing CO, emissions E na b le \ Sustainable materials \ Downstream sustainability contributions P Durability, recyclability, Providing solutions for Substitution, safe materials a sustainable transition everywhere Raw materials _ lh H
Slide 41: Pro-Environment Project Air, Gaia, Elephant
Pro-Environment Project Air Project Gaia Project Elephant Open 41 Open
Slide 42: Voxtar, Evyron, Neeture
Voxtar™ Evyron™ Neeture™ Open 42
Slide 43: Project Air
Project Air >50% reduction of Perstorp direct CO2 emissions from its site in Stenungsund Annual replacement of 200 000 tons fossil methanol in chemical products Will be the world's largest Carbon Capture and Utilization unit Recent Updates: — Methanol license and engineering services for Project Air
Slide 44: PCG Specialty Chemicals Way Forward
PCG Specialty Chemicals Way Forward by: Azli Ishak
Slide 45: Delivering values aligned with immediate and long-term targets
PCG will continue to focus on delivering values aligned with our immediate and long targets $ 50% improvement in cash ) flows from operations by 2025 1 Maximise value from OE & CX 2 Optimise Cost 3 Environment Stewardship & Resource Efficiency wa 30% revenue by 2030 from i M Non-traditional business
Slide 46: Questions
Questions &S Answers
Slide 47: Thank you
Petronas Chemicals*Group.Berhad Th a n k yo u Knowledge Sharing #1 (Specialty Chemicals) May 2023 Your feedback is important to us ©
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