Integrated Report - Thriving Forward

Basis of this Report

Basis of This Report

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

To address growing demands for climate-related disclosures and align with global reporting frameworks, PDB has embraced the disclosure recommendations of the TCFD. The TCFD framework serves as a strong foundation for the emerging sustainability disclosure standards by the International Sustainability Standards Board (ISSB), including IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2: Climate-related Disclosures. By adopting the TCFD recommendations, we strive to enhance the quality and relevance of our climate-related disclosures while positioning ourselves for seamless compliance with future standards.

The Sustainability Action Committee (SAC) and the Board Sustainability and Risk Committee (BSRC) play critical roles in strengthening governance by overseeing climate-related risks, opportunities and other sustainability-related matters. These committees ensure that sustainability considerations, including climate impacts, are effectively integrated into PDB's long-term strategy and decision-making processes.

ASSURANCE

We continue to ensure the credibility of our disclosures by engaging independent external auditors. The financial statements in this Report have been independently audited, while selected indicators of our sustainability disclosures have been subjected to limited independent assurance by LRQA Malaysia Sdn. Bhd. and KPMG PLT (KPMG) in accordance with IS0 14064 and ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information. The selected indicators and scope of assurance can be found in the independent limited assurance reports from pages 166 to 173.

FORWARD-LOOKING STATEMENTS

This Report contains certain forward-looking statements that reference future prospects, plans and outlooks. These statements are subject to uncertainties and should not be taken as definite. The forward-looking statements indicated are as of the publishing date of this Report and it is not the Company's obligation to update and will not necessarily do so. Readers are advised not to rely on the forward-looking statements as guarantees or predictions of future performance.

FEEDBACK

We welcome feedback to continuously enhance our reporting practices and disclosures. Stakeholders are encouraged to share their views on this Report by contacting us at petdagir@petronas.com.

STATEMENT OF ACKNOWLEDGEMENT ON RELIABILITY AND COMPLETENESS OF PDB'S 2024 INTEGRATED REPORT PDB's Board of Directors acknowledges its responsibility to ensure the integrity of this Integrated Report, which, in the Board's opinion, addresses all the issues that are material to the Group's ability to create value and fairly presents the integrated performance of PDB Group. This Report has been prepared in accordance with the International Integrated Reporting Framework by Value Reporting Foundation and was approved by the Board on 20 February 2025.

Our Sustainability Report has been prepared with reference to the Global Reporting Initiative (GRI) Universal Standards 2021. It complies with Bursa Malaysia's MMLR sustainability reporting requirements and is prepared with reference to:

• Bursa Malaysia's Sustainability Reporting Guide (3rd Edition)
• United Nations Sustainable Development Goals (UN SDGs)

What You Will Find

Inside This Report

Who We Are and

What We Do

BASIS OF THIS REPORT

PDB AT A GLANCE

Who We Are and What We Do

Our Value Chain

Where We Operate

Group Corporate Structure

NOTABLE DISTINCTIONS

Our Investment Insights

Awards & Accolades

Milestones

LEADERSHIP MESSAGES

Chairman's Statement

MD/CEO's Statement

CFO's Review

• 5-yearGroup Financial Highlights
• Simplified Group Statement of Financial Position
• Segmental Analysis
• Group Quarterly Financial Performance
• Key Interest Bearing Assets and Liabilities
• Statement of Value Added/ Distribution of Value Added

THRIVING THROUGH VALUE CREATION AT PDB

Our Approach to Value Creation Sustainability Agenda

SUSTAINABILITY REPORT

1. Chain
2. Delivering Net Zero
3. • Climate Change and GHG Emissions
4. Thriving with Nature

24 Fostering a Just Transition

1. • Human Capital
2. • Capability Building
   • Community Investment

Sustainability Dashboard

1. GRI Content Index Bursa Malaysia Indicators
2. External Independent Assurance Report

THRIVING THROUGH GOVERNANCE EXCELLENCE

FINANCIAL STATEMENTS

For more than four decades, PETRONAS Dagangan Berhad (PDB) has redefined what it means to deliver value by embracing change and staying attuned to the evolving needs of our customers and stakeholders.

At PDB, our mission goes beyond simply providing solutions - it is about creating experiences that matter. Staying true to our promise of making your everyday life simpler and better, we constantly challenge boundaries by introducing differentiated offerings that reinforce customer centricity and elevate everyday interactions. From the forecourt to new frontiers of convenience, our focus remains on unlocking opportunities for growth and progress in a rapidly shifting landscape.

In all that we do, we are guided by Environmental, Economic, Social and Governance (EESG) principles. These are not lofty ideals but tangible commitments that drive meaningful and measurable impact. By embedding trust, resilience and sustainability into our business strategies, we aim to balance progress with purpose and deliver outcomes that enable us and our stakeholders to thrive forward.

Driving our vision is a team of dedicated individuals who bring agility, determination and heart to everything we achieve. Their commitment allows us to seize opportunities and overcome challenges, ensuring PDB remains a trusted partner in building a more sustainable and prosperous future for all.

Our Operating Environment and Market Outlook

Engaging with Our Stakeholders Material Matters

Key Risks and Mitigation Our Strategy

Our Value Creating Business Model

BUSINESS REVIEW

Retail-Fuel

Commercial

LPG

Lubricants

Convenience:

• MESRA
• Setel Enablers:
• Supply and Distribution
• Digital

1. Organisation Structure

1. Leadership Team's Profile

1. Corporate Governance Overview

1. Statement

1. Internal Control

84

86

Proxy Form

202

230

235

241

244

247

Statement of

Purpose

A Progressive Energy and Solutions Partner Enriching Lives for a Sustainable Future

Brand Positioning

Passionate about Progress

Our Promise

Making Your Everyday Life Simpler and Better

Our Shared Values

Loyalty

Loyal to Corporation

Integrity

Honest and Upright

Professionalism

Strive for Excellence

Cohesiveness

United, Trust and Respect for Each Other

PETRONAS Cultural Beliefs

Customer Focused

I deliver solutions from the customer lens

Innovate Now

I challenge norms and push boundaries

Be Enterprising

I seek opportunities and make them happen

Speak Up

I express my views openly

Courage To Act

I take action to progress with pace

Our Value Chain

DISTRIBUTION

PRIMARY

FACILITIES

TERMINALS AND

Vessels

Direct from Refinery and Gas Plant

Multi-product Pipeline

• Kuala Lumpur International Airport
• Klang Valley Distribution Terminal

Trans Thai-Malaysia

(Malaysia)

Sdn. Bhd.PETRONAS Penapisan

(Terengganu) Sdn. Bhd.

Malaysia

LNG

Sdn. Bhd.

Malaysian

Refining

Company

Sdn. Bhd.

SECONDARY DISTRIBUTION

Product Supply

IMPORT

PETRONAS

Lubricants

International

Sdn. Bhd.

PETRONAS

Trading

Corporation

Sdn. Bhd.

CUSTOMERS

Retail-FuelLPG

CommercialLubricants

For further information on PDB's Group Corporate Structure, refer to page 8.

3RD PARTY SUPPLY

Where We Operate

Where We Operate

36

Terminals

Legends

Fuel Terminals

Aviation Terminals

LPG Terminals

and Bottling Facilities

Offices

Multi-product Pipeline

17 Fuel

Terminals

1. ASB Labuan**
2. CODT Tanjung Manis (JV)#
3. IOT Kuching (JV)*#
4. Kertih
5. Kuantan*
6. KVDT Dengkil (JV)#
7. Labuan
8. Lumut*
9. Melaka

10 Miri

1. Pasir Gudang*
2. Prai*
3. PST Bintulu (JV)*#
4. PST Tawau (JV)#
5. Pulau Langkawi*
6. Sandakan*
7. Sepangar Bay*

13 Aviation

Terminals

1. Bayan Lepas
2. Bintulu
3. Kertih
4. KLIA [FFB + KAFS (JV)]
5. Kota Kinabalu
6. Kuala Terengganu
7. Kuching
8. Miri
9. Pulau Langkawi

1. Sandakan
   11 Senai

1. Sibu
2. Subang

1. Kertih
2. Melaka
3. Pasir Gudang
4. Prai
5. PST Tawau (JV)#
6. Sepangar Bay

1. Johor Bahru
2. Kota Kinabalu
3. Kuala Lumpur
4. Kuantan
5. Kuching
6. Prai

Group Corporate Structure

Group Corporate Structure

MALAYSIA

PETRONAS AVIATION SDN. BHD. PDB: 100%

MALAYSIA

PETRONAS LUBRICANTS MARKETING (MALAYSIA) SDN. BHD.

PDB: 100%

MALAYSIA

MESRA RETAIL & CAFÉ SDN. BHD. PDB: 100%

MALAYSIA

KUALA LUMPUR AVIATION FUELLING SYSTEM SDN. BHD.

PDB: 65%

Malaysia Airports (Properties) Sdn. Bhd.: 20%

Malaysia Airlines Berhad: 15%

MALAYSIA

SETEL VENTURES SDN. BHD.

PDB: 100%

MALAYSIA

SETEL EXPRESS SDN. BHD.

PDB: 100%

MALAYSIA

SETEL PAY SDN. BHD.

PDB: 100%

MALAYSIA

P S PIPELINE SENDIRIAN BERHAD

PDB: 50%

Shell Malaysia Trading Sdn. Bhd.: 50%

MALAYSIA

P S TERMINAL SENDIRIAN BERHAD

PDB: 50%

Shell Timur Sdn. Bhd.: 50%

MALAYSIA

PETROSNIAGA SDN. BHD.

PDB: 49%

Petroleum Sarawak Berhad: 51%

MALAYSIA

IOT MANAGEMENT SDN. BHD.

PDB: 20%

Shell Timur Sdn. Bhd.: 10%

Senari Synergy Sdn. Bhd.:70%

MALAYSIA

TANJUNG MANIS OIL TERMINAL MANAGEMENT SDN. BHD.

PDB: 20%

Shell Timur Sdn. Bhd.: 20%

Senari Synergy Sdn. Bhd.:60%

INTELLECTUAL

SR

N

SOCIAL AND RELATIONSHIP

NATURAL

Awards & Accolades

In 2024, we set our sights firmly on elevating industry excellence, building on the awards and recognitions we earned in 2023. Every recognition we receive reaffirms the Shared Values that drive us to create lasting value.

As we continue our journey, our focus sharpens on advancing impactful solutions, fostering meaningful partnerships and delivering results that matter to our stakeholders and the communities we support. We will continue turning recognition into action by advancing impactful solutions, strengthening partnerships and driving progress that shapes the industry's future while empowering sustainable growth.

Milestones

Over the years, we have continually evolved to shape the future of the retail oil and gas industry. Guided by our commitment to making everyday lives simpler and better for our customers, every achievement reflects the passion and drive that define our journey.

In 2024, we embraced a bold future by reimagining how we serve our customers. Guided by a commitment to continuous improvement, we developed innovative, seamless solutions that enhance convenience and elevate the customer experience.

Scan the code to view our full list of Awards and Recognitions.

FEBRUARY

Achieved its 15th win at the Putra Brand Awards in 2024, PETRONAS was honored in the Automotive - Fuel, Lubricants and Accessories category. This consistent recognition over the years underscores PDB's unwavering commitment to maintaining a trusted and valued brand in the industry.

MARCH

Inaugurated two standalone Kedai Mesra stores at MRANTI Technology Park and AmBank Tower. This milestone underscores our commitment to enhancing convenience and accessibility for our customers. The new stores offer a wide range of products and services, reflecting PDB's mission to deliver exceptional retail experiences.

JULY

PDB and PLUS signed a Memorandom of Understanding (MoU) to develop Malaysia's first Hybrid Super Station on highways, promising enhanced travel experiences with innovative features.

Launched a physical PETRONAS Shop at PETRONAS Solaris station. This new retail outlet marks a significant milestone, providing customers with easy access to authentic PETRONAS merchandise and enhancing their overall experience. This initiative reflects PDB's commitment to expanding its retail footprint and meeting customer needs more conveniently.

SEPTEMBER

ROVR debuted its expansion at Gamuda Cove, enhancing fuel accessibility in the neighborhood. Starting on weekends, ROVR offers on-site fuel delivery for residents and visitors. This initiative eliminates detours, addresses fuel concerns and provides a seamless refueling experience.

NOVEMBER

Alongside Gentari Sdn Bhd, we partnered with Perodua Sales Sdn Bhd through two MoUs to enhance customer experiences. This collaboration introduces new integrated services, including Setel payments in the UFirst app, Mesra amenities and service centers at select PETRONAS stations.

DECEMBER

Successfully enhanced its Café Mesra network across Malaysia. This significant achievement underscores our commitment to enhancing customer experience by providing convenient and welcoming spaces for relaxation and refreshment.

Follow our full story by scanning the QR code.

Chairman's Statement

As Malaysia's foremost petrol station network and a trusted marketer of the PETRONAS brand, we build on a solid foundation to create lasting value through innovation, sustainability and operational excellence. In a rapidly changing landscape, we recognise the need to act with greater speed and agility, consistently meeting expectations and seizing new opportunities. Our goal is not simply to maintain the strong performance of the past, but to elevate our ambitions and deliver even greater value. With a clear focus on the future, we are positioning ourselves to meet the challenges ahead and achieve meaningful results for our stakeholders and communities.

THRIVING FORWARD:

Chairman's Statement

WE ARE POSITIONING OURSELVES TO MEET THE CHALLENGES AHEAD AND ACHIEVE MEANINGFUL RESULTS FOR OUR STAKEHOLDERS AND COMMUNITIES.

Solid Performance in 2024

The year under review presented a range of challenges, including economic pressures, evolving regulatory landscapes and a rapidly changing market environment. Despite these factors, the resilience of the Malaysian economy and the moderation of oil prices have presented valuable opportunities for PDB to continue gaining momentum under our Moving Forward Together (MFT) strategy. Changes in policy and regulation have also shaped our approach, driving us to adapt and align with emerging requirements. In 2024, our focus on operational excellence, coupled with the expansion into new growth areas has enabled us to remain responsive and positioned for the future.

EMBRACING THE FUTURE WITH PURPOSE

DATUK ANUAR AHMAD

Chairman

Dividend

Per Share

107 sen

Dividend Payout Ratio

100%

We are pleased to report strong operational and financial performance in 2024, underpinned by the continued strength of our core business, which remains essential to driving the success of our MFT strategy. Robust sales, combined with a clear commitment to operational and commercial excellence, have allowed us to navigate a fast- changing marketplace and enhance customer satisfaction. As consumer demand shifts, we continue to fortify our core business while diversifying into the Convenience segment and driving sustainability through low-carbon energy solutions to ensure we future-proof our operations. Our Convenience business has played a key role in these efforts, supporting both growth and the seamless customer experience that is central to our strategy.

In recognition of our continued growth and commitment to delivering value to shareholders, the Board is pleased to announce a dividend of 107 sen per share for the year, inclusive of 20 sen special dividend, reflecting our ongoing efforts to balance growth with long-term value creation.

Commitment to Sustainable Growth

Sustainability is a central pillar of our strategy and in 2024, we adopted PETRONAS' Sustainability Approach, aligning with its broader sustainability vision. Addressing climate change and advancing environmental stewardship remain a key priority and we are committed to creating long-term value for our stakeholders through responsible and measurable actions. The Sustainability Approach focuses on three core sustainability components, namely Delivering Net Zero, Thriving with Nature and Fostering a Just Transition. These interconnected components are collectively centred around the goal of Creating Sustainable Value through Responsible Governance.

PETRONAS'

SUSTAINABILITY

APPROACH

Chairman's Statement

OUR FOCUS IS ON DRIVING INNOVATION, ADVANCING SUSTAINABILITY AND EMPOWERING OUR PEOPLE TO ENSURE RESILIENCE AND LONG-TERM SUCCESS.

Chairman's Statement

As we move into 2025, we recognise potential macroeconomic challenges such as inflation and commodity price shifts. However, we remain confident in Malaysia's economic resilience, backed by a stable political environment. We are optimistic that the government's management of fuel subsidies will continue to support economic stability and ensure a balanced approach to both consumer needs and business growth. We are committed to staying nimble and adapting to changes while maintaining a sustainable business model that serves our customers effectively.

In Appreciation

For the year under review, we advanced our efforts to integrate low-carbon solutions, such as increasing the use of renewable energy at our stations, enhancing our offerings of biofuels, including biodiesel, Sustainable Aviation Fuel (SAF) and providing pathway to expand the availability of electric vehicle (EV) charging infrastructure. Our Used Cooking Oil (UCO) collection programme is fast gaining traction, contributing to environmental sustainability by recycling waste into valuable resources. These are just some of the steps taken that reflect our commitment to supporting the transition to a low-carbon future and reducing our environmental footprint.

Our commitment to sustainability is driven by measurable goals, clear accountability and creating value for both our customers and communities. In line with this, we are preparing for the 2025 adoption of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards (S1 and S2), which will enhance transparency in our sustainability disclosures, particularly regarding climate-related risks and opportunities. These standards will require comprehensive reporting on governance, strategy and risk management, ensuring we meet regulatory requirements and stakeholder expectations for greater disclosure.

Leading with Strong Governance

Governance is the foundation of PDB's long-term value creation. We are committed to maintaining a robust governance structure that ensures transparency, responsibility and strategic alignment across all levels of the organisation. In line with PETRONAS' commitment to ethical and responsible operations, we are pleased to adopt the Group's Human Rights Policy, effective from 2024. This policy integrates human rights considerations into our operations, fostering a culture of respect and accountability throughout PDB.

We continue to strengthen our governance framework to embed sustainability into decision- making at every level. Our dedicated sustainability team, aligned with the broader governance structure, collaborates closely with the Sustainability Action Council (SAC) to drive initiatives focused on reducing our environmental impact, including efforts to lower GHG emissions. This approach ensures that our focus remains clear and our progress is measurable.

Our Board and Leadership Team ensure that decisions are informed by diverse perspectives, fostering a culture of inclusivity and integrity. We recognise the critical role of diversity in strengthening governance and are committed to maintaining balanced representation. Currently, 33% of our Board members and 44% of our Leadership Team are women, in line with best practices in corporate governance. With 56% of our Board members classified as independent, we uphold a decision-making process that is objective, transparent and aligned with the highest governance standards.

Our governance structure, underpinned by a commitment to sustainability, has enabled us to achieve significant progress in our environmental, social and governance (ESG) journey. This includes an improvement in our FTSE4Good rating, from 3.6 to 4.2, positioning us within the top quartile of public-listed companies. This accomplishment reflects our comprehensive approach to ESG management and showcases how governance and sustainability are tightly intertwined in our strategy. Yet, we recognise that the pace of change in both governance and sustainability is accelerating and we must remain agile to stay ahead.

Empowering our Workforce to Accelerate Excellence

We are committed to enhancing our social impact, particularly by ramping up excellence within our workforce. This includes expanding diversity in our hiring practices and providing opportunities for Persons with Disabilities (PWD). These efforts are key to fostering an inclusive workforce that reflects the diverse communities we serve and we are determined to accelerate progress in this area.

None of our achievements would be possible without the dedication and hard work of our people and our extended workforce. To continue building on this success, we are focused on driving a high-performance culture that demands more from every individual. I expect this commitment to excellence not only from our teams but also from myself, the Board and the Leadership Team. We are all in this together, striving across every level of the organisation. As we look to the future, we must move faster, push boundaries and instil a sense of urgency throughout the workforce to ensure we meet the challenges ahead with determination and agility.

Setting our Sights on the Future

The theme Thriving Forward represents both our efforts in 2024 and our mindset moving forward. It reflects our commitment to accelerating growth and enhancing stakeholder value. While we celebrate our past achievements, we recognise the need to increase the pace to stay ahead in a rapidly evolving energy landscape. Our focus is on driving innovation, advancing sustainability and empowering our people to ensure resilience and long-term success.

The energy sector is transforming and we must act with urgency to lead the transition to

1. low-carbonfuture. To achieve this, we are embracing new technologies and innovations that enable swift adaptation and long-term value creation. By investing in digitalisation and big data, we are enhancing our ability to meet evolving customer needs and improve efficiency.

As a major contributor to Malaysia's economy, PDB supports national development through the stable supply of fuels, job creation and significant revenue contributions. But our role extends beyond this. By integrating sustainable solutions such as biofuels, renewable energy and EVs, we are well-positioned to support and align with Malaysia's environmental goals and our strategy to reduce our carbon footprint while enhancing customer convenience.

I would like to take a moment to thank our dedicated staff for their hard work and commitment, which has been fundamental to our ongoing success. My heartfelt appreciation also goes to the Board for their guidance and counsel and the Leadership Team for their support. Their collaboration has been instrumental in driving the company forward.

I extend my sincere thanks to our customers, whose trust and loyalty remain the foundation of everything we do. To our partners, regulatory bodies and government ministries, your continued support and cooperation play a crucial role in enabling us to meet our goals and contribute to the country's development.

Finally, I would like to acknowledge the valuable contributions of Datuk Shafie Shamsuddin, who has stepped down from his role as Senior Independent Director. His leadership and service have been an important part of shaping this company and we are grateful for his commitment during his tenure.

Thank you to all our stakeholders for your continued support as we collaborate to drive lasting value and thrive forward together.

DATUK ANUAR AHMAD

Chairman