PETRONAS Chemicals Group Bhd. · MYX:PCHEM

PETRONAS Chemicals Group Bhd — Q3 2018 Earnings Presentation

24 slides from PETRONAS Chemicals Group Bhd's earnings presentation, Nov 16, 2018

1. Slide 1: Quarterly Analyst Briefing for the Quarter Ended 30 September 2018

   ‘SHAREHOLDER VALUE t ~ © Doce . cee r : PETRONAS PRODUCT SOCIETAL STEWARDSHIP NEEDS PETRONAS CHEMICALS GROUP BERHAD Quarterly Analyst Briefing for the Quarter Ended 30 September 2018 16th November 2018 6.00pm HEALTH & SAFETY BIODIVERSITY ENVIRONMENT

2. 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 conta

3. Slide 3: Page 2

   Key Highlights Financial Highlights Manufacturing Highlights Commercial Outlook Moving Forward 00000 © PETRONAS

4. Slide 4: Key Highlights

   © PETRONAS Key Highlights

5. Slide 5: Petrochemicals Market Spreads

   PETRONAS Petrochemicals Market Spreads USD/MT 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 USD/bbl 400 80 O&D Average Spread* 350 70 300 250 Brent 200 40 150 30 100 ora oaelhl(klClll 20 1 50 F&M Average Spread 10 S S SS Ss SH SH S SF FS FS © S S S SF sy So SF oS SF KF KF SM we we s ys w & *Left Axis Glob

6. Slide 6: 9M 2018 Highlights

   Key Highlights 9M 2018 Highlights © PETRONAS = Plant utilisation (PU) at 91% * 5 statutory TA completed * Higher on-stream days = Sales volume increased 5% y-o-y ¢ Healthy demand for petrochemical products * Higher product prices = 12% PAT improvement = Improved EBITDA with; Better spreads, higher s

7. Slide 7: Financial Highlights

   © PETRONAS Financial Highlights

8. Slide 8: 3Q 2018 Group Financial Results

   3Q 2018 Group Financial Results : _ PETRONAS Financials Year to date Individual quarter ended , (16%) 3% 3Q 2018 (9%) t YTD FY 2018 L Volume 202018 (IPED YTD FY 2017 Kmt 392017 ZT T RM Mil 592018 I) — YTD FY 2017 30207 ce. (8%) . 3Q 2018 12% ytp FY 2018 ~—~Profit 32% 1 After Tax 2.2018 Lt RM Mil YTD

9. Slide 9: Financials: Olefins & Derivatives

   Financials Financials : Olefins & Derivatives PETRONAS Others —— (RM million) 3,163 2,633 2,754 FEM 852 945 965 1,658 Revenue 3Q 2017 2Q 2018 3Q 2018 (RM million) lM Revenue SSE EBITDA 8,393 9,072 3,135 3,016 Others comprise of operations related to investment holding company and port services YTD F

10. Slide 10: Financials: Fertilisers & Methanol

    Financials : Fertilisers & Methanol . . PETRONAS Financials (RM million) 2,002 1,686 1,403 878 3Q 2018 F&M Revenue f 7 + (RM million) 1,658 3Q 2017 2Q 2018 3Q 2018 l@l™ Revenue @@ EBITDA 5,519 4,355 2,345 1,798 * Others comprise of operations related to investment YTD FY 2017 YTD FY 2018 holding com

11. Slide 11: Balance Sheet as at September 2018

    Financials Balance Sheet as at 30 September 2018 © PETRONAS Total Assets (RM million) 33,262 35,885 eS others 511 6,674 11,436 Cash & cash equivalents Trade & other receivables Trade & Other inventories| Investment in joint ventures and associates 2,572 Property, plant and equipment (PPE) As at 30.0

12. Slide 12: Page 9

    891 5,125 (1,230) 11,436 (24) 6,674 * * Page 9

13. Slide 13: Manufacturing Highlights

    © PETRONAS > Manufacturing Highlights

14. Slide 14: Page 10

     25 100% 20 90% 15  80% 10 70% 5  60% 50% 0 Page 10

15. Slide 15: Page 11

    120% 10 110% 9 100% 8 90% 7 80% 6 70% 5 60% 4 50% 3 40% 2 30% 1 20% 0 Page 11

16. Slide 16: Page 12

    120% 10.0 110% 9.0 100% 8.0 90% 7.0 80% 6.0 70% 5.0 60% 4.0 50% 3.0 40% 2.0 30% 1.0 20% 0.0 Page 12

17. Slide 17: Operation & Maintenance Readiness

    citral | menthol | citronellol • • OPERATION & MAINTENANCE READINESS highly reactive polyisobutene Page 13

18. Slide 18: Operation: Conclusion

    Operation: Conclusion © PETRONAS = Quarter 3 Group Plant Utilisation was stable in view of heavy turnaround activities conducted = Good volumes from Olefins & Derivatives business segment = Turnarounds completed at Ethylene and Polyethylene plants in Kerteh, Fertiliser plant in Gurun and Methanol pl

19. Slide 19: Commercial Outlook

    © PETRONAS Commercial Outlook

20. Slide 20: Q4 2018 (Forecast)

            Q4 2018 (Forecast)          Page 15

21. Slide 21: Market outlook by product: Q3 2018 and Q4 2018 forecast

    Q3 2018 (vs Q2 2018) t Stable supply from SEA & ME End season in US and Europe Q4 2018 (Forecast) Indian Tender. Tight supply in ME, SEA and China Anticipation of demand from Brazil PETRONAS 3 2018 (vs Q2 2018) Tight supply in SEA t Market sentiment on additional new suppl rey Firmer NEA demand Q4 2

22. Slide 22: Moving Forward

    © PETRONAS Moving Forward

23. Slide 23: Moving Forward: market drivers and uncertainties

    Oil price Ng recovery $ Increasing consumer demand Improving global economy PETRONAS Vv Market eS Uncertainties Increasing protectionism o Short term volatility

24. Slide 24: Thank You

    Of 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

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