Petronas Chemicals Group Bhd. · MYX:PCHEM
Petronas Chemicals Group Bhd — Shareholder Meeting (2024)
24 slides from Petronas Chemicals Group Bhd's shareholder meeting presentation, 2024
Slide 1: PETRONAS Group zero tolerance against bribery and corruption
The PETRONAS Group adopts zero tolerance against all forms of bribery and corruption. We abide by the PETRONAS Code of Conduct and Business Ethics (CoBE) & Anti-Bribery and Corruption (ABC) Manual, guided by our Shared Values and Statement of Purpose. © 2024 Petroliam Nasional Berhad (PETRONAS) All
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: Presentation Outline
Presentation Outline Business Environment 2023 Performance • Business result • Growth • Sustainability 2024 Outlook
Slide 4: Business Environment
o Business Environment
Slide 5: A challenging 2023
A challenging 2023 Supply chain Slow economic growth Geopolitical tension High energy prices disruptions
Slide 6: Soft chemicals market
Soft chemicals market Integrated Spread (USD/MT) Demand in key industries served by specialty segments 661 remained weak due to economy slowdown 551 492 476 Consumer Goods Construction 406 Automotive/ Transportation 2019 2020 2021 2022 2023 Ethylene-Naphta PE-Ethylene
Slide 7: 2023 Performance
2023 Performance Business Result Growth Sustainability
Slide 8: Solid HSE Excellence
Solid HSE Excellence Lost Time Injury Frequency* (LTIF) 0 0.22 industry benchmark Fatality 0.17 Major Fire 0.14 0.08 0.09 0.07 20 19 20 20 20 21 20 22 20 23 *Data covers Malaysian operations and BRB
Slide 9: Sustain Operational Excellence
Sustain Operational Excellence Production Volume (million tpa) 10.4 10.7 10.4 10.2 10.4 0.2** Plant Utilisation* 0.8 85%90% world class benchmark 6.6 6.8 6.5 6.4 6.2 3.8 3.9 3.9 3.6 3.4 2019 2020 2021 2022 2023 O&D F&M SC *excluding Specialty Chemicals 9 **volume post Perstorp acquisition in Q4 2022
Slide 10: Robust Commercial Excellence
Robust Commercial Excellence Sales Volume (million tpa) 8.4 8.2 8.2 8.3 9.6 Order Fulfillment 0.8 Reliability* 0.2** 95% 90% industry benchmark 5.4 5.2 5.1 5.2 5.3 3.0 3.0 3.1 2.9 3.5 2019 2020 2021 2022 2023 O&D F&M SC *excluding Specialty Chemicals **volume post Perstorp acquisition in Q4 2022
Slide 11: Financial performance
Financial performance Liquidity with Revenue Cashflow from (RM bil) Operations (CFFO) of (RM bil) 28.7 2022 : 29.0 5.1 2022 : 8.0 EBITDA PAT (RM bil) (RM bil) 3.8 2022 : 8.1 1.8 2022 : 6.3
Slide 12: Maintain dividend payout ratio ~50%
Maintain dividend payout ratio ~50% Dividend Payout Ratio (% PATANCI) Total Dividend Payout RM 1.0 bil 59 61 61 Interim Dividend 51 52 1 st paid on 21st Sep 2023 RM0.08 Interim Dividend 2 nd paid on 27th Mar 2024 RM0.05 20 19 20 20 20 21 20 22 20 23 FY2023 Dividend (per ordinary share) RM0.13
Slide 13: Deliver Growth Delivery Excellence
Deliver Growth Delivery Excellence Diversify into derivatives, specialty chemicals and solutions 2-Pronged Strategy to future-proof the business Basic Specialty Derivatives Petchem Chemicals Global 1 2 Regional Extend Value Build Specialty Create Optionality Local Chain (EVC) Platform for Growth PCG
Slide 14: Extending our value chain
Extending our value chain Construction progressing Final Investment Decision 1 Ready For Start Up 2 as planned 3 (FID) Specialty Ethoxylates & Polyether Polyols 2-Ethylhexanoic Acid Kertih, Terengganu Gebeng, Pahang Nitrile Butadiene Latex Melamine Maleic Anhydride Pengerang, Johor Gurun, Kedah Gebe
Slide 15: Building our specialty platform
Building our specialty platform Full operation of Lube Oil Additives & Chemicals (LAC) Commissioning of new plant in Echt, Netherlands Pentaerythritol (Penta) production facility in SPECIALTY Sayakha, India Incorporation of CHEMICALS BRB Silicones United Kingdom Ltd Working towards approval for sust
Slide 16: Creating optionality for growth
Creating optionality for growth Achieved the first drop from bio-based Developing Global Innovation Network 1 emollient pilot plant for personal care 2 applications
Slide 17: Advancing circularity
Advancing circularity Plastic Circularity Circular Solutions Achieved Final Investment Decision (FID) Introduced Akestra 100 and Akestra 110 for advanced chemical recycling plant in • Enhance recycled PET’s heat resistance Pengerang, Johor • Enable increased recycled material content • Promote c
Slide 18: Progressing towards net zero
Progressing towards net zero 2023 GHG emission reduction efforts Energy efficiency Flaring reduction Renewables Total 19,400 tCO2e 32,200 tCO2e 94,500 tCO2e 146,100 tCO2e Total GHG Emission for Scope 1 and Scope 2 – Market Based (mil tCO2e) 7. 47 7. 43 equivalent to emission reduction by 61,880 7. 3
Slide 19: Advocating positive social impact
Advocating positive social impact 170,000 2022: >75,000 120,000 kg Recyclable waste collected from Be Green 5,700 Mangroves planted Community members reached 11,000 Participation in conservation and biodiversity programme
Slide 20: Awarded global recognitions
Awarded global recognitions 1 Achieved 3 Silver rating Top quartile (Top 25% in 4-Star rating FTSE4GOOD the industry) for FTSE4GOOD 2 Sustained 4 Gold rating Top 10% (Top 5% in Companies for World the industry) and Emerging Markets for third consecutive years
Slide 21: 2024 Outlook
o 2024 Outlook
Slide 22: Prevailing headwinds
Prevailing headwinds Integrated Spread (USD/MT) Demand for key industries served by specialty segments is expected to be similar to 2023 level 661 551 492 410 Consumer Goods Construction 406 Automotive/ Transportation 2020 2021 2022 2023 Q1 2024 Ethylene-Naphta PE-Ethylene Source: Platts, ICIS, IHS
Slide 23: Maximise value for stakeholders
Key priorities for 2024 1 2 Deliver 3 Operational Steadfast Growth ZERO is possible Excellence & Delivery Excellence Commercial Excellence 4 5 Build strong Advancing Specialty Chemicals sustainability business commitments Maximise value for stakeholders
Slide 24: Thank you
Thank you PETRONAS Chemicals Group Berhad | 26th Annual General Meeting
PETRONAS Chemicals Group Berhad — Shareholder Meeting (2024) on 6ix