Petronas Chemicals Group Bhd. · MYX:PCHEM
Petronas Chemicals Group Bhd — CGS-CIMB 16th Annual Malaysia Corporate Day (January 2024)
16 slides from Petronas Chemicals Group Bhd's conference presentation, January 2024
Slide 1: CGS-CIMB 16th Annual Malaysia Corporate Day
PETRONAS CHEMICAL GROUP BERHAD CGS-CIMB 16th Annual Malaysia Corporate Day January 2024 Cf PETRONAS
Slide 2: Disclaimer
[Open] 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
Slide 3: Agenda
{Open] Agenda About PCG Snapshot: The Chemicals Industry Positioning for Sustainability - 2-pronged strategy aimed at value preservation and growth - Climate action - Evolving market dynamics and EESG requirements Market Outlook - Fertiliser & Methanol - Olefins & Derivatives - Specialty Chemicals I
Slide 4: PCG is a leading integrated chemicals player in the region
[Open] PCG is a leading integrated chemicals player in the region PCG's Global Network 8 o °O. on lg ee ° © Commodities (FM & OD) % © Specialty Chemicals 1 3 MAJOR SEGMENTS Olefins & Derivatives Olefins, intermediate, basic and high performance chemicals, and polymer Fertilisers & Methanol Methanol
Slide 5: Industry Outlook: Short term challenges persist as industry pivots
[Open] Industry Outlook: Short term challenges persists as industry pivots towards new end-market demands and circularity Long-term (post 2030) Immediate (2025-2030) + Positive global demand for basic petrochemicals albeit slower growth * Growth in specialties will dominate led by electronic chemica
Slide 6: PCG positioning to address shifts in the chemicals industry
[Open] PCG has been positioning itself to sustainably address the immediate and anticipated shifts in the chemicals industry Feedstock and Net-zero demand carbon “Companies in the petrochemical cliecretitecttem aisTarives industry...will need to focus on three areas to differentiate themselves and “
Slide 7: PCG's 2-pronged growth strategy to preserve and grow value
[Open] PCG’s 2-pronged growth strategy aims to preserve and grow value, both in basic chemicals & derivatives business and new specialty chemicals platform Feedstock & demand diversification Reposition portfolios of assets & products Basic Petchem i a ing ee | Specialty Derivatives Chemicals Cas acr
Slide 8: Climate action is at the forefront of our Sustainability Agenda
Climate action is at the forefront of our Sustainability Agenda Net-zero carbon initiatives Establish circularity/ eco-system [Open] PCG NET-ZERO CARBON EMISSIONS (NZCE) PATHWAYS Optimise the use ) of forest-based carbon offset ) and low carbon solutions storage Driving Climate Action Limit GHG for
Slide 9: Evolving market dynamics and EESG requirements
Understanding of evolving market dynamics and EESG requirements provide PCG the ability to respond to risks and opportunities Refinery- petrochemical integration Sustainability governance PRESENT RISKS Oil price fluctuation OPPORTUNITIES + New process technologies Overcapacity increasing competition
Slide 10: 0 0 0 o o o o OE CE GE
[Open] 14 00 12 0 12 00 10 0 10 00 80 80 0 60 60 0 40 40 0 20 20 0 0 0 o o o o OE CE GE
Slide 11: OE CE GE
[Open] 70 0 12 0 60 0 10 0 50 0 80 40 0 60 30 0 40 20 0 20 10 0 0 0 o o o OE CE GE
Slide 12: Specialty Chemicals: Market expected to register moderate growth
{Open} Specialty Chemicals: Market expected to register moderate growth as demand & supply gradually stabilize across all market segments Outlook by segments Focus Area for 2024 Resins & Market driven by shifting demand due to i~ : , Coatings environmental coating regulations been Sayeltn ia @ Proje
Slide 13: Investing in a sustainable future
Investing in a sustainable future Our priority is to grow and deliver value to our stakeholders CAPEX for new Business Commodity Specialty Allocated Project New Projects Allocation CAPEX is crucial in sustaining the businesses > 30% (For illustration purpose only) ens sted t tim es xr 21% 2022 2023
Slide 14: PCG continue to record commendable operational and financial performance
[Open] PCG continue to record commendable operational and financial performance despite volatile markets and supply chain disruptions Operational performance Financial performance —@-Dividend Payout 94% 92% 93% 5 Ratio ~ 89% ase 50.0% 61.0% 55.0% 51.2% 51.9% 29.0 23.0 Zi 16.4 2019 2020 2021 2022 9M
Slide 15: [Open]
[Open] • • • • • • • • • • • • • Internal
Slide 16: Thank you
[Open] Thank you
PETRONAS Chemicals Group Berhad — CGS-CIMB 16th Annual Malaysia Corporate Day (January 2024) on 6ix