Petronas Chemicals Group Bhd. · MYX:PCHEM
Petronas Chemicals Group Bhd — Shareholder Meeting (2019)
25 slides from Petronas Chemicals Group Bhd's shareholder meeting presentation, 2019
Slide 1: Annual General Meeting: Financial & Business Review FY2018
PETRONAS CHEMICALS GROUP BERHAD ANNUAL GENERAL MEETING FINANCIAL & BUSINESS REVIEW FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018
Slide 2: Leading, Future Focused, Outlook 2019
LEADING FUTURE FOCUSED we ss OUTLOOK 2019
Slide 3: Leading
LEADING
Slide 4: Global economy
Global economy GDP Growth Rate (% Change) 73 China 69 —o— 67 Emerging Markets & Developing Asia * Note: Exclude China and India Source: IHS, The World Bank & International Monetary Fund (IMF), January 2019
Slide 5: Strong market landscape
Strong market landscape Average Petrochemicals and Crude Oil Prices Petrochemicals USD/MT 751 Crude Oil USD/barrel 99 ow Source: IHS, Platts, ICIS, Fertecon, FMB, Prophecy, CRU, Argus & Team Analysis
Slide 6: World class HSE Excellence
World class HSE Excellence Safety Performance (LTIF*) Industry Benchmark ZF and | PCG's workers hold high levels of commitment towards HSE Excellence * Note: Lost Time Injury Frequency
Slide 7: Best in class Operational Excellence
Best in class Operational Excellence Production Volume and Plant Utilisation Plant Utilisation 80% Production Volume Aworker at PC Ethylene, our first gas cracker plant at KIPC in Kertih, Terengganu
Slide 8: Driving Commercial Excellence
Driving Commercial Excellence Sales Volume and Revenue Revenue RM billion 14.6 oO Sales Volume miltpa The launched of PCG's 10 new product brands at Asia Petrochemicals Industry Conference (APIC) 2018
Slide 9: Expanding value propositions to customers
Expanding value propositions to customers 6 Product applications & 1 technical solutions ()) New product brands Commercial Lab surfactants & polymers
Slide 10: Strong financial results
Strong financial results Financial Performance EBITDA 66 RM ng ge 46 47 PAT RM billion L_| | PCG was honoured with several awards at The Edge Billion Ringgit Club Awards 2018
Slide 11: Dividend payout ratio remains 50%
Dividend payout ratio remains 50% 2014 Dividend Payout (RM Million) 2015 2016 2017 2018 1° Interim Dividend RMO0.14 paid on 20¢ Sep 2018 2: Interim Dividend RMO.18 paid on 27% Mar 2019 ‘Dividend o (per ordinary share) RMO.32 0 ' Dividend | Payout Ratio 51% f
Slide 12: Construction completed for Glycols, PP and LLDPE
* Construction completed for Glycols, PP and LLDPE « 1st product shipment to customers in April 2019 * Overall progress is at (as of Mar 2019)
Slide 13: Contributing to sustainable future
Contributing to sustainable future Environment Society aye Sit ¢ Reached > 13,000 people ¢ Replanted ~3,000 mangrove trees in an area of 11,000m? * Note: GHG: Greenhouse Gases COD: Chemicals Oxygen Demand
Slide 14: Accolades throughout 2018
Accolades throughout 2018 Ady ARC AWARDS fa XXxil 1) Best of Asia Pacific (Non-Traditional Most Organised\\ Annual Report) Investor Best Corporate Relations Responsibility (Malaysia) & Returns To Initiative for Consistent Shareholders y Super Big Cap Dividend Policy, Over Three Companies Years eae I
Slide 15: Future Focused
FUTURE FOCUSED
Slide 16: Delivering operational excellence & initial phase of growth
Delivering operational excellence & initial phase of growth Preferred Chemical Company Providing i Innovative Customer Solutions aa ¢ Increase basic petrochemicals capacity by ~40% from 10.8 to 14.6 mil tpa (in 2020) 2 @ Achieve plant utilisation > 90% and customers’ demand fulfillment reliability >
Slide 17: Our growth aspiration
Our growth aspiration Earnings T Specialty Td] Commodity 1985 2018 +20 years
Slide 18: Megatrends shaping chemicals for growth
Megatrends shaping chemicals for growth Global Megatrends | Po Urbanisation Aging population Increasing global connections Shift to emerging markets and rise of consumerism Renewable energy Energy efficiency Energy storage Prioritised End-Markets | C2) Construction [2] Paints & Coatings C3) Personal
Slide 19: Three growth levers
Three growth levers Extend Value Chain Add value to existing complexes through downstream investment 4 Build Specialty Platform A cess technology & market through M&A Create Optionality forGrowth — _ s CJ eeding innovative technologies through R&D and CVC
Slide 20: Twenty growth opportunities in derivatives and specialty chemicals
Twenty growth opportunities in derivatives and specialty chemicals 2 ‘thylene’ projects Wag) OPPORTUNITIES 1 3 project projects Pengerang Petrochemicals Complex, providing opportunity for PCG to further extend into derivatives & specialty chemicals
Slide 21: Venture into R&D & CVC in plastic recycle, specialty and bio-based chemicals
Venture into R&D & CVC in plastic recycle, specialty and bio-based chemicals Internal R&D on bio-based Corporate Venture Capital (CVC) chemicals Water bottles; . . 1 , + Specialty chemicals green’ engine coolant Enhanced oil recovery for Bio-based chemicals oil drilling production 6) Personal Care 6
Slide 22: Outlook 2019
ss OUTLOOK 2019
Slide 23: Volatile market condition
Volatile market condition GDP Growth Rate % Change 8.0 India China O— Oo —o— —o— 6.9 67 68 Emerging Markets & Developing Asia Source: IHS, The World Bank & International Monetary Fund (IMF), April 2019 Average Crude Oil and Product Prices Petrochemicals Prices USD/MT 561 Crude Oil Prices USD/barrel
Slide 24: Focus areas in 2019
Focus areas in 2019 Sustain world Class Operational Excellence Drive Commercial Excellence Uphold HSE as a Priority Operationalise Venture into Specialty & Pengerang Bio-based Petrochemicals, Complex Chemicals
Slide 25: Thank you
Petronas Chemicals Group Berhad — Shareholder Meeting (2019) on 6ix