Petronas Dagangan Bhd. · MYX:PETDAG
Petronas Dagangan Bhd — Non-Deal Roadshow (July 2019)
57 slides from Petronas Dagangan Bhd's roadshow presentation, Jul 8, 2019
Slide 1: Move Like Never Before
Move Like Never Before »/ Smooth ./ Responsive ~/ Efficient PETRONAS — UC a PRIMAX9S — ) — =| with Pro-Drive a . s=] | f ¥ @ © PETRONASBRANDS, www.mymesra.com.my
Slide 2: Corporate Briefing Non Deal Roadshow, Bangkok
Corporate Briefing Non Deal Roadshow Bangkok, Thailand 8 July 2019
Slide 3: About Us
PETRONAS About Us Business Highlights “* Retail “* Commercial * LPG Lubricant 7 Operational Excellence Performance Highlights Future Aspirations
Slide 4: Business Highlights
PETRONAS Business Highlights Retail Commercial LPG Lubricant *% 7 7 “se “se J *% Operational Excellence Performance Highlights Future Aspirations
Slide 5: PetDag is the marketing subsidiary of PETRONAS
PetDag is the marketing subsidiary of PETRONAS "PETRONAS Dagangan Berhad ("“PetDag”) is the marketing subsidiary of Petroliam Nasional Berhad (“PETRONAS”). «Its principal activities are the marketing and distribution of petroleum products in the domestic and regional markets. " PetDag was incorporat
Slide 6: Diversified portfolio and marketer and retailer in Malaysia
PetDag has diversified portfolio and is the marketer and retailer in Malaysia RETAIL COMMERCIAL Offers Fuel and Non-Fuel Sells and markets bulk Products and services at petroleum products with more than 1,000 stations market leadership in and 700 Kedai Mesra domestic commercial market nationwide LPG
Slide 7: Current product price mechanisms
Current product price mechanisms Business Products Price Mechanism PETRONAS £———-~ Automatic Pricing RETAIL All products Fee COMM ERCIAL All products Market Price ia Household Mechanism 6 LPG Bulk — a, Commercial/ Market Price Industrial All products Market Price NS LUBRICANT Open.
Slide 8: Product Cost + Alpha, Dealer's Commission
Variable Elements Fixed Elements • • Mogas andand Diesel : Average Cost associated directly with Mogas Diesel : mogas, diesel and LPG MOPS Average st to the 30th of from 1MOPS from Product Cost + α* incurred in head office and the thecurrent month +month preceding Alpha (5+ depots. sen for Mogas and
Slide 9: Terminals and plants network
LPG Bottling Sepangar Bay Plant Pulau Langkawi Aviation Terminal Kota Kinabalu Prai Fuel Terminal Kuala Terengganu Office Sandakan Bayan Labuan Lepas Bunkering Facility Miri Tawau Kertih Multi-Product Pipeline Lumut Kuantan Kuala Lumpur Sibu Bintulu Subang Dengkil Kuala Lumpur International Tanjung
Slide 10: Supply chain
SUPPLY CHAIN Malaysia Refining PETRONAS Penapisan en opb (Terengganu) Sdn Bhd TransThai-Malaysia Malaysia LNG (Malaysia) Sdn Bhd SdnBhd PETRONAS PETRONAS Trading Lubricants Corporation International Sdn Bhd ocation _Hospitality Term Purchase/ xchange Arrangement Spot Term Integrated Value Chain PRIM
Slide 11: Business Highlights
PETRONAS About Us Business Highlights J *% Commercial LPG Lubricant 7 7 “se “se J *% Operational Excellence Performance Highlights Future Aspirations
Slide 12: The leading marketer and retailer
The leading marketer and retailer Retail Business comprise of 2 major components: @ Fuel @ Non Fuel: PETRONAS PRIMAX 97 WITH Kedai Mesra ADVANCED ENERGY FORMULA aa = on PETRONAS PRIMAX 95 WITH PRO-DRIVE PETRONAS DYNAMIC DIESEL PETRONAS DYNAMIC DIESEL EURO 5 PETRONAS Stations Kedai Mesra Open 7
Slide 13: Retail business models
Retail business models COMPANY OWNED, DEALER OPERATED (CODO) STATIONS 0 Under the CODO model, the PETRONAS station is owned and managed by the Company but is operated by an appointed Dealer. 0 The Dealer, also known as an Operator is appointed by PDB through a series of screening processes. inl \ ye
Slide 14: Open
• • • Open
Slide 15: Transforming our station customer experience
Open Transforming our stat customer expe REFURBISHED PETRONAS STATIONS UPGRADED MESRA NEW LOOK AND FEEL OPENED NEW Quick Service Restaurants 10
Slide 16: Quality products with smooth and fast fuelling experience
Quality products with smooth and fast fuelling experience Multi Product Dispenser | PETRON AS with Advanced Energy Formula EXPANDED >700 PETRONAS = pynamilc —— = Mia DIESEL EURO 5 Diesel Euro 5 : with Pro-Drive EXPANDED EXPANDED >160 | >140 ) open Multi-Product Dispenser y,
Slide 17: Surge ahead with our new fuel
Surge ahead with our new fuel... [NEW a PETRONAS PRIMAX95 with Pro-Drive ~ SMOOTH ~ RESPONSIVE vy EFFICIENT aol ~ AVAILABLE | > 1 ry 0 0 0 \ \ 12
Slide 18: Customer feedback on Pro-Drive petrol
“I get more mileage for “My car definitely feels this pro-drive petrol. Extra different. Better pickup 30 to 40km per more efficient” tank” -HOVEN WEN CH -AIMAN ISMAIL “Tetibe rasa lain kat kereta “Terbaik mileage aku. Rasa lebih PETRONAS Primax 95 with Pro-Drive! Memang ringan, lebih power berbeza
Slide 19: Consistent delivery of superior customer experience
Open 1 Consistent delivery of superior customer experience 3. Right station at the right place 4 Aggressive non-fuel growth 14
Slide 20: Successful year-round marketing campaigns
Successful year-round marketing campaigns 3 PETRONAS ‘STAFF STAND A CHANCE _ TO WIN ADIDAS SHOPPING VOUCHERS WORTH RM3,000 3x WANG TUNAI BERNILAI &._ RMs0, 000 3x 10x eeamooaens resmirescaat ilies coe Key Initiatives Focus on marketing efforts via Mesra Bonanza campaign Provide attractive rewards to
Slide 21: Increased customer loyalty through Kad Mesra
Increased customer loyalty thro BEST Loyalty Programme in ind PETRONAS 17% mesfra KAD MESRA SIGN-UPS 15% KAD MESRA MEMBERS Key Initiatives @ Focus on targeted Kad Mesra promotions Open (2 Collaborate with strategic business partners 16
Slide 22: #WeSetelForYou
#WeSetelForYou Introduced Setel, 1st integrated petrol e-payment solution in Southeast Asia Available at PETRONAS stations Number of downloads 17
Slide 23: Positive user feedback on Setel
Positive user feedback validating the convenient and smooth solution Setel (Unreleased) has a new $ toto love this app. It is so convenient to fill up and tc je to track my montly fuel us vell as Mesra Points earned. Petronas, plea increase your Setel stations. Tq berpuas hati dan by FREDERICK FRANC
Slide 24: Introduced innovative fuel delivery service
Introduced innovative fuel delivery servic
Slide 25: Attracting traffic to the stations
Open 1 Consistent delivery of superior customer experience 2. Attracting traffic to the stations 4 Aggressive non-fuel growth 20
Slide 26: We continue to expand our network
We continue to expand our netwo >10 NEW PETRONAS STATIONS ~ Key Initiatives @ Right station at the right place Expedite the roll-out of new stations and prioritising our land banks usage 21
Slide 27: First EV charging facility at stations
PDB installed the 1°* EV charging facility a stations in Malaysia Q1 FY2019: 60 EV Stations Open 22
Slide 28: Right station at the right place
Open 1 Consistent delivery of superior customer experience 2 Attracting traffictothe stations FB Rightstation attheright place QD rosressivenon-fuctgrowth 2. Attracting traffic to the stations 3. Right station at the right place 23
Slide 29: Customised product offerings to meet customer needs
Customised product offerings to m customer's needs
Slide 30: Mornings@Mesra breakfast campaign
Successful Mornings@Mesra breakfast campaign providing breakfast solutions on the go... A perfect day starts with a happy tummy. Get BREAKFAST ON-THE-GO with MORNINGS@MESRA! Grab our Breakfast Combo* for only RM 5! Open 25
Slide 31: Introduction of white label brand
..and introduction of white label brand Water Bottle Mesra Bites Mesra Wipes Stay fresh, 6 Puan ariaiancede Cs stay hydrated. — a quick snack’ Visit ch ids ee PETRONAS Mesra store today! & Open 26
Slide 32: Strategic partnerships to provide convenience
Strategic partnerships to provide convenience Co-Working Space Banks and Others EicimBeANk |@)Maybank Gfac MALAYSIA Food Solutions § KFC STARBUCKS" E-Commerce Z LAZADA Key Initiatives Collaborate with strategic business partners to bring better value to our customers Open (2 Enhance cross merchant r
Slide 33: Exclusive PETRONAS merchandise
Exclusive PETRONAS merchandise to expand expand our portfolio “ PETRONAS S MOTORSPORT PRIDE PERFORMANCE coutect TION PETRONAS Open 28
Slide 34: Commercial
PETRONAS About Us Business Highlights > Retail LPG Lubricant 7 7 “se “se J *% Operational Excellence Performance Highlights Future Aspirations
Slide 35: Commercial business model, product mix and market segments
Commercial Business Model, Product Mix & Ma PRODUCTS i ) Diesel @ Fuel Oil Kerosene Gasoline Petroleum Coke Sulphur Agriculture Construction Transportation Manufacturing Open Segments Aviation |—— >| Aviation Terminals Customers Importations 5 . > Refineries Commercial Fuel —=>| Dealers Terminals |_
Slide 36: Command market leadership in Malaysia
Command market leadership in Malaysia Upstream Industrial Power Generation & Agriculture Airlines malaysia ® [Hess] migeuy Bd SINRSHE fsrance Pu... © & @ oF Petrofac @ (4 = i Emmites Malindo s in SS sTAL IxNippon O18 Energy — - UDeRSY Se REPSOL qimonmeort —sain Darby a © kim QATAR =—™Cnmenit_ ungin
Slide 37: Project RAPID to provide growth for Commercial
Project RAPID will provide more growth for Commercial Business in the future RAPID's production capacity will be at 30 0,0 00 barrel per day with 3.5 million metric tons per annum Open 31
Slide 38: LPG
PETRONAS About Us Business Highlights ** Retail <- Commercial LPG “> Lubricant 7 Operational Excellence Performance Highlights Future Aspirations
Slide 39: Malaysia's No.1 cooking gas and industrial LPG marketer
We are Malaysia’s No.1 Cooking Gas and industrial LPG marketer LPG Bottling Plants/Terminals Household Commercial/Industrial C12 & C14 C14 & C50 Bulk be 7 of Direct C50 Dealers Direct Bulk Dealers Customers a> FUMAKILLA peropua ~<o~Mipvauier Building Cars People First Open 32
Slide 40: Gas2U application
Gas2U application has changed the traditional way of ordering cylinders KINI, ANDA BOLEH BUAT PESANAN GAS MEMASAK LEBIH MUDAH! Gas2u The first cooking ordering application in Malaysia Open 33
Slide 41: Widen availability of LPG cylinders
Open Widen the availability of LPG cylinders a selected location LPG cylinders Now available at selected PETRONAS stations to provide greater convenience for our customers 34
Slide 42: Fortify market leadership
Fortify market leadership Launched LPG 14kg cylinder for commercial customers 35
Slide 43: Lubricant
PETRONAS About Us Business Highlights “* Retail “- Commercial *° LPG 7 “ Lubricant —_—| Operational Excellence 7 Performance Highlights Future Aspirations
Slide 44: Top tier lubricant player
Continued to be the top tier lubricant player via extensive range of lubricant products ‘ha bRARS awe Passenger Vehicle Lubricants & Motorcycle Oil Commercial Lubricants o> PROTON DRB-HICOM QD sercedes-benz 101 S... wa | Be =. & joittony, 4d) NADI EB rsestsia “Hanson Marine Lubricants 2 @ JOSAMERIN
Slide 45: PETRONAS Syntium with CoolTech
PETRONAS Syntium with °CoolTech™ cools better than any Lubricants in the market PETRONAS Syntium with °CoolTech™ Open 37
Slide 46: World-class products with customised solutions
World-class products with customised solutions Continue to serve major Original Equipment Manufacturers Secured a new long-term contract with the main rail operator PERODUA HONDA Key Initiatives Appointment of new and capable Market Execution Partners and Premium Dealers Continuous improvements in s
Slide 47: Operational Excellence
PETRONAS About Us Business Highlights Retail Commercial LPG Lubricant Operational Excellence Performance Highlights *% 7 7 “se “se J *% Future Aspirations
Slide 48: Continue to optimise distribution costs
Continue to optimise distribution costs Integrated Inventory Supply and distribution Continuous cost Management Strategy efficiency reduction efforts from 9 to 4 days » Higher frequency of > Optimum vessel > Prudent spending inventory scheduling replenishment > Review and > Optimum road tanker conso
Slide 49: Performance Highlights
PETRONAS About Us Business Highlights “- Retail Commercial LPG Lubricant 7 7 “se “se J *% Operational Excellence Performance Highlights Future Aspirations
Slide 50: Group Financial Performance
Group Financial Performance The Group recorded strong financial performance with an increase in PBT by 33% against Q1 FY2018 Revenue Profit Before Tax EBITDA (RM mil) (RM mil) (RM mil) prorrrromercosaaeccoasecccne A 0.2% prsenconecnenneneneennnneennnn A33% mm Co ae ‘Ww 10% pos Ad >100% po >100% 7,90
Slide 51: Gross Profit higher against Q1 FY2018
Gross Profit was higher by 25% against Q1 FY2018 Due to higher margins whilst Other Income was higher by 17% offset by higher OPEX by 20% Gross Profit OPEX Other Income (RM mil) (RM mil) (RM mil) ponent 20% peveeneecceceeetccenenentan Ma 17% | pod ax a 8% 578.9 587.1 i 489.3 96.3 104.7 112.9 Q1FY201
Slide 52: Consolidated Statement of Financial Position
Consolidated Statement of Financial Positi Improved Return on Equity and strengthen cash position. Total Assets (RM mil) 9,170.8 31 Dec 2018 10,162.6 Visin 31 Mar 2019 Cash and Cash Equivalents (RM mil) 3,543.7 2,187.9 31 Dec 2018 31 Mar 2019 Equity attributable to shareholders of the Company (RM mi
Slide 53: Q1 FY2019 dividend declared
For Qi FY2019, PetDag has declared dividend amounting to 15 sen/share Dividend per share (RM sen) Q1 FY2018 Qt FY2019 Qi FY2018 Qi FY2019 Dividend Payout (%) 64% 54% For Q1 FY2019, PetDag has declared dividend of 15.0 sen, with lower dividend payout as compared to Q1FY2018 Open 43
Slide 54: Consistent delivery of shareholders' value
Consistent delivery of shareholders’ value Gross Dividend (sen) Dividend Payou A 4 113% t Ratio (%) q FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Qt FY2019 me Dividend Payout Ratio —m—Gross Dividend Open 44
Slide 55: Future Aspirations
PETRONAS About Us Business Highlights “- Retail “<- Commercial LPG “+ Lubricant 7 \7 ee Operational Excellence Performance Highlights
Slide 56: Three strategic focus areas
Growing for the future, we will anchor on three strategic focus areas oB & Transforming Customers Experience \ZA SL Market leadership — ay Q Leveraging Digital Innovation Open 45
Slide 57: Open © 2019 Petroliam Nasional Berhad (PETRONAS)
Open © 2019 Petroliam Nasional Berhad (PETRONAS) 60
PETRONAS Dagangan Berhad — Non-Deal Roadshow (July 2019) on 6ix