PETRONAS Chemicals Group Bhd. · MYX:PCHEM
PETRONAS Chemicals Group Bhd — Q2 2018 Earnings Presentation
25 slides from PETRONAS Chemicals Group Bhd's earnings presentation, Aug 15, 2018
Slide 1: Quarterly Analyst Briefing for the Quarter Ended 30 June 2018
PRODUCT STEWARDSHIP a HEALTH & SAFETY ‘SHAREHOLDER VALUE ENVIRONMENT SOCIETAL NEEDS BIODIVERSITY PETRONAS PETRONAS CHEMICALS GROUP BERHAD Quarterly Analyst Briefing for the Quarter Ended 30 June 2018 15** August 2018 6.00pm
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
Slide 3: Key Highlights, Financial Highlights, Manufacturing Highlights, Commercial Outlook, Moving Forward
Key Highlights Financial Highlights Manufacturing Highlights Commercial Outlook Moving Forward 00000 © PETRONAS
Slide 4: Key Highlights
© PETRONAS Key Highlights
Slide 5: Business Environment: Market sees continued growth yoy
Business Environment Market sees continued growth yoy © PETRONAS Petrochemicals Market Spread 400 ...2@.2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 O&D average spread* 150 00 eee 50 | F&M average spread* 4 Ms; 7 J A S fe \ m cz Pray “Beg yy May Mrz “Pry Phy ry “yy *Left Axis USD/bbl 80 75 70 65 60 55 50 45
Slide 6: 2Q 2018 Highlights
Key Highlights 2Q 2018 Highlights © PETRONAS = Plant utilisation (PU) at 95% * Full operations of PCFSSB ¢ Higher on-stream days = Sales volume increased 10% y-o-y ¢ Healthy demand for petrochemical products ¢ Higher product prices = EBITDA margin at 38% = Improved EBITDA with; Better spreads, highe
Slide 7: Financial Highlights
© PETRONAS Financial Highlights
Slide 8: 2Q 2018 Group Financial Results
2Q 2018 Group Financial Results . . PETRONAS Financials Year to date Individual quarter ended (4%) 7% oc EERE 1 2018 20 2018 l + 1 L Volume ig 2018 Pig 1H 2017 Kmt 202017 | eee (4%) 1 RM Mil 1Q 2018 4 t 1H 2017 1 2Q 2017 After Tax = 1.2018 cl 1H 2017 RM Mil | 25% sx BEEN 22018 profi t 2Q 2017 % | (2
Slide 9: Financials: Olefins & Derivatives
Financials : Olefins & Derivatives Financials PETRONAS Others —— (RM million) 3,155 2,539 2,754 F&M 949 1,106 945 1,968 | Revenue : : : (RM million) 2Q 2017 1Q 2018 2Q 2018 lll Revenue Sl EBITDA related to Others comprise of operations investment holding company and port services which provide produ
Slide 10: Financials: Fertilisers & Methanol
Financials : Fertilisers & Methanol : _ PETRONAS Financials (RM million) 1,813 2,002 FEM 1,445 878 577 778 Revenue 1,968 ( | (RM million) f 2Q 2017 1Q 2018 2Q 2018 — Others * Others comprise of operations related to investment holding company and port services which provide product distribution infr
Slide 11: Balance Sheet as at June 2018
Financials Balance Sheet as at 30 June 2018 © Total Assets (RM million) 33,262 35,339 As at As at 31.12.2017 30.06.2018 Others Cash & cash equivalents Trade & other receivables Trade & Other inventories Investment in joint ventures and associates Property, plant and equipment (PPE) PETRONAS Total Eq
Slide 12: Cash Flows as at June 2018
Financials Cash Flows as at 30 June 2018 PETRONAS (RM million) (63) 11,406 3,309 (538) 6,674 Cash & cash Cash flow generated Cash flow used in Cash flow (used Net Cash & cash equivalents at the from operating investing activities in)/generated from increase/(decrease) equivalents at the beginning of
Slide 13: Manufacturing Highlights
© PETRONAS > Manufacturing Highlights
Slide 14: Industrial Standard, 85%
100% 93% 95% 90% 86% 96% 98% 25 100% 91% 90% 85% 20 80% 80% Industrial Standard, 85% 15 10 70% 9.2 10.1 7.7 8.1 60% 5 5.5 50% 0 Page 10
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
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
Slide 17: Operation & Maintenance Readiness
citral | menthol | citronellol • OPERATION & MAINTENANCE READINESS highly reactive polyisobutene Page 13
Slide 18: Operational highlights
Operational highlights © PETRONAS =" Quarter 2, 2018 was operationally smooth for PCG = Good volumes from Fertiliser & Methanol business segment " Safe turnaround at PDH plant in Gebeng = Wewill have planned turnaround activities in Quarter 3 and Quarter 4 = Annual production volume will remain abov
Slide 19: Commercial Outlook
© PETRONAS Commercial Outlook
Slide 20: Q2 2018 results and Q3 2018 forecast
Q2 2018 Q2 2018 Q2 2018 Q2 2018 (vs Q1 2018) (vs Q1 2018) (vs Q1 2018) (vs Q1 2018) Q3 2018 Q3 2018 Q3 2018 Q3 2018 (Forecast) (Forecast) (Forecast) (Forecast) Page 15
Slide 21: Q2 2018 results and Q3 2018 forecast
Q2 2018 Q2 2018 Q2 2018 (vs Q1 2018) (vs Q1 2018) (vs Q1 2018) Q3 2018 Q3 2018 Q3 2018 (Forecast) (Forecast) (Forecast) Page 16
Slide 22: Moving Forward
© PETRONAS Moving Forward
Slide 23: Strong demand, cautious market
Strong demand, cautious market © Q PETRONAS Moving Forward mer ( > “TP Oil price rWvad recovery BS Va ~ \ Market a (~ Uncertainties Increasing Ham e consumer = demand (— \ Increasing (~ protectionism Improving global \ economy Ne Page 17
Slide 24: Key focus areas for 2018
Key focus areas for 2018 © PETRONAS Moving Forward = Sustain world class operational excellence = Deliver commercial & innovation excellence = Execute growth projects effectively " Growth portfolio and future proof business
Slide 25: Thank You
THANK YOU © PETRONAS For further enquiries please contact us at: PETRONAS Chemicals Group Berhad Level 14, Tower 1, PETRONAS Twin Towers Kuala Lumpur City Centre, 50088 Kuala Lumpur, MALAYSIA petronaschemicals_ir@petronas.com www.petronaschemicals.com
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