Petronas Chemicals Group Bhd. · MYX:PCHEM
Petronas Chemicals Group Bhd — Morgan Stanley Virtual ASEAN Conference 2023
22 slides from Petronas Chemicals Group Bhd's conference presentation, June 2023
Slide 1: Morgan Stanley Virtual ASEAN Conference 2023
PETRONAS CHEMICALS GROUP BERHAD Morgan Stanley Virtual ASEAN Conference 2023 June 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 Performance Highlights Growth Agenda Market Outlook Moving forward = sustainability
Slide 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 ae (2-EHAcid) | Indonesia 49% Nitrile Butadiene ost ; Latex (NBL) 49% lastic waste to crude naphtha Specialty = Sustainable Ethoxylates * fertiliser & Polyols s
Slide 10: Perstorp: global specialty chemicals manufacturer
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 | 8 Open
Slide 11: Short-term market outlook
Short-term market outlook O&D: Weak demand recovery amidst additional supply from new capacity addition Forecast: > June-July 0 0 y-22 ul-22 Sep-22 Nov-22 Jan-23 thylene. ——MEG ——=PE Ethylene: © Soft on rising regional supply mainly in China amid weak downstream demand and low buying interest Ethyle
Slide 12: 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 50% improvement in cash flows rast 30% revenue by 2030 from non- ij from operations by 2025 T traditional business Maximise value from OE & CX Executions of
Slide 13: Thank You
THANK YOU
Slide 14: Appendix
Appendix
Slide 15: 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 * Commenced production at F Gebeng Integrated Petrochemical 80 Subsidiaries anal cation > Complex in. Pahang, _ Kerteh intulu Fertilizer Integrated Petroch
Slide 16: 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 17: Page | iii
➢ ➢ ➢ 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 | iii Open
Slide 18: 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 19: 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 20: Environmental: Net Zero Carbon Emissions Roadmap by 2050
Environmental: PCG aims to reduce greenhouse gas (GHG) emission through Net Zero Carbon Emissions Roadmap by 2050 (NZCE2050) - Key Challenges ENVIRONMENT i o As more projects comes on stream, our GHG emissions will Environment increase Efficiency o Increasing stakeholder scrutiny and expectation for
Slide 21: Social: CSR initiatives reach will be expanded
Social: CSR initiatives reach will be expanded to support our sustainability development Responsibility #8 Human Rights & Employment well being & talent development e r 6-8 Social Impact Key Challenges o Expansion for Mangrove plantation in view of limited land at ecoCare o To determine effectivenes
Slide 22: End of Documents
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