PETRONAS CHEMICALS GROUP BERHAD

Corporate Presentation

September 2016
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 contained and appearing in this presentation and the associated slides (hereinafter referred
to as "the MATERIALS"). Accordingly PCG, its subsidiaries and related corporations and its or their directors, officers, employees, agents and advisers (hereinafter
referred to as "We") represent that, to the best of our knowledge and belief that the MATERIALS which are owned and directly related to us therein are accurate,
correct and true.

The MATERIALS is not exhaustive. We do not assume any obligation to add, delete or make any changes to the MATERIALS and we may do so, if we feel necessary,
without prior notice.

We expressly disclaim all liabilities whatsoever for any direct, indirect, special or consequential loss or damages howsoever resulting directly or indirectly from the
access to or the use of this MATERIALS and the reliance on the MATERIALS contained herein. You should rely on your own evaluation and assessment of the
MATERIALS in order to arrive at any decision. Any decision made by you based on the MATERIALS is your sole responsibility.

The MATERIALS may also contain information provided by third parties and we make no representation or warranty regarding the accuracy, reliability, truth and
completeness of the said third parties' information.

In no event would the MATERIALS constitute or be deemed to constitute an invitation to invest in PCG, its subsidiaries and related corporations or an invitation by
PCG, its subsidiaries and related corporations to enter into a contract with you.

Forward Looking Statements and Associated Risks

The MATERIALS and related discussions, including but not limited to those regarding the petrochemicals environment, anticipated demand for petrochemicals,
plant turnaround activity and costs, investments in safety and operational risk, increase in turnaround activity and impact on production, future capital expenditures
in general, generation of future receivables, sales to customers, cash flows, costs, cost savings, debt, demand, disposals, dividends, earnings, efficiency, gearing,
growth, strategy, trends, reserves and productivity together with statements that contain words such as "believe", "plan", "expect" and "anticipate" and similar
expressions thereof may constitute forward looking statements.

Such forward-looking statements are subject to certain risks and uncertainties, including but not limited to, the economic situation in Malaysia and countries in
which we transact business internationally, increases in regulatory burdens in Malaysia and such countries, changes in import control or import duties, levies or
taxes in international markets or in Malaysia, and changes in prices or demand for products produced by us, both in Malaysia and in international markets, as a result
of competitive actions or economic factors. Such forward looking statements are also subject to the risks of increased costs in related technologies and such
technologies producing expected results, and performance by third parties in accordance with contractual terms and specifications.

Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated or projected.
Specifically, but without limitation, capital costs could increase, projects could be delayed, and anticipated improvements in capacity or performance may not be
fully realised. Although We believe that the expectations of management as reflected by such forward looking statements are reasonable based on information
currently available, no assurances can be given that such expectations will prove to have been correct. Accordingly, you are cautioned not to place undue reliance
on the forward looking statements. We undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.

This presentation and its contents are strictly confidential and must not be copied, reproduced, distributed, summarised, disclosed, referred or passed to others at
any time without the prior written consent of PCG.
Company Overview
Performance Highlights
Growth Prospects
RAPID Petrochemical Projects
Market Outlook

3
COMPANY
OVERVIEW

4
A leading chemical player in the region

First plant in 1985

Made up of 29 subsidiaries, joint

One of South East Asia’s largest integrated
ventures & associated companies gas-based chemicals producer

Over 4,600 employees

Largest Methanol producer in South East
Asia and fourth largest in the world

Listed since November 2010

~RM53* billion (~USD13 billion) market
Second largest Urea producer in South

capitalisation East Asia in 2016 with SAMUR

Member of MSCI Asia Ex-Japan /
Third largest LDPE producer in South

MSCI Asia Ex-Japan Chemicals East Asia

Top 10 in FBM KLCI, FBM Emas Shariah

Largest MTBE capacity in South East Asia
and Bursa Malaysia FTSE4GOOD Index

*As at 30 June 2016

5
 Production capacity spread across Malaysia

THAILAND

Labuan 5
Total 10.8 mil mtpa of existing

3 Gurun
MALAYSIA
6 Sipitang production capacity
1 Kertih
2 Gebeng Bintulu 4
Total of 18 manufacturing plants
across the Group:
7 Pengerang
SINGAPORE INDONESIA
Wholly-owned: 9 plants

Olefins & Derivatives Fertilisers & Methanol
Partly-owned: 5 plants

Associates: 4 plants
4.9 mil mtpa 5.9 mil mtpa
1 2 3 Gurun
Kertih IPC Gebeng IPC
Two integrated petrochemical

Ethylene
MTBE
Urea complexes in Kertih, Terengganu

Polyethylene (1)
Propylene
Ammonia

Benzene
Acrylics, Oxo-alcohols,
Methanol and Gebeng, Pahang

Paraxylene Butanediol (2) 4 Bintulu

Ammonia, Carbon
Aroma, 2-EH Acid,
Three manufacturing complexes in
Monoxide & Oxogas HR-PIB(2) 110 ktpa
Ammonia
Urea
Gurun, Kedah

Ethylene Glycols


Butanol, Ethanolamines, 7
Bintulu, Sarawak
5 Labuan
Glycol Ethers, Butyl Pengerang
Federal Territory of Labuan
Acetate, and other
Methanol
performance chemicals
Polyethylene
6
New complexes in Sipitang, Sabah

Acetic Acid(2)
Polypropylene Sipitang

Ethylene Glycols by 2016 and Pengerang, Johor by
3.15 mil mtpa
Ammonia

Urea 1.94 mil mtpa 2019
(1) Low Density Polyethylene (LDPE), Linear Low Density Polyethylene (LLDPE),
High Density Polyethylene (HDPE)
(2) Products from associates (addition to PCG capacity is based on PCG equity) xx mil mtpa New capacities 6
 Fully integrated production facilities with significant
synergies across the production chain
Ethylene MEG
Ethane Ethylene Ethylene Oxide
Glycols DEG

MEA
LLDPE/HDPE
Ethano-
Ethano- DEA

Operational
lamines TEA
LDPE Ucarsol flexibility to modify
Propane Propylene
Natural
Gas Styrene Alcohol Ethoxylates product mix, minimise
Monomer Polyethylene Gylcols
Nonylphenol Ethoxylates molecule loss, and

Ammonia Butanol optimise profits across

Methane Butyl Glycols Ethers the entire value chain
Oxogas Butyl Acetate

Kertih IPC : Increased Margin Capture Down the Value Chain

= Basic feedstock = Ethane Chain = Propane Chain = Methane Chain = Butane Chain

Integrated support and

ancillary services
leading to substantial

operational and
logistic efficiencies

7
Established market leader in South East Asia and China

Physically present in
Malaysia, Thailand, China,
Indonesia, Vietnam, the
Philippines and India

Higher netback market

Revenue by Region Revenue by Channel particularly in South East Asia
China Traders/Distributors
SEA 16% ROTW and China
33% 14% 49%
37% 51%

Malaysia End Customers
Gearing towards value-

Revenue by Segment Revenue by Contract driven customer solutions
F&M Spot Customers

30% 30%
70% 70%

O&D
Term Customers 8
*FY2015 Data
Strong competitive advantages with resilient business
performance

• Fully • Secure and • Large scale

integrated competitive and diversified
facilities and feedstock product
infrastructure supply portfolio

Integration results in Advantaged gas- Economies of scale

lower costs, optimum based feedstock, for various
yields and greater second only to applications reduce
flexibility Middle East players market risk

• Close to key • Established

growth market leader
markets

Optimised inventory #1 for Methanol, #3

along with for MEG and #4 for
competitive storage Urea by production
& distribution capacity

9
PERFORMANCE
HIGHLIGHTS

10
Sustained world class operational performance

Plant Utilisation Rate

Highest annual Group
utilisation of 85% since
listing
95%
93%
93%

Improved feedstock
92%
supply through close
O&D 85% relationship with supplier
World class = 85%

Group
Improved plant

80%
reliability resulting
F&M
from effective asset
management

2012 2013 2014 2015 1H 2016

11
Maximised sales in higher netback markets

Higher sales volume in

Group Sales Volume line with higher plant

(Mil MT)
utilisation
6.4

6.0 3.5
Sales concentration in

South East
Asia South East Asia

Asia Pacific
Optimisation of cost-to-

1H2016
2015 serve through logistics
2014
and inventory

management

12
Robust financial results despite weak market
conditions
Revenue (RM Million) EBITDA (RM Million)
16,599
EBITDA Margin
15,202 14,597
13,536
35% 33% 32% 34% 37%

5,778
5,076 4,644 4,660
6,349

2,350

2012 2013 2014 2015 1H 2016 2012 2013 2014 2015 1H 2016

PAT (RM Million) Basic EPS (sen)

PAT Margin

23% 23% 19% 23% 23%*

3,837 3,504
2,726 3,091
44 39
31 35
1,445*
13

2012 2013 2014 2015 1H 2016 2012 2013 2014 2015 1H 2016

*Note: 1H2016 PAT = RM1,445 million excluding elastomers project write-off in 2Q2016 amounting to RM241 million.
Post write-off, PAT = RM1,204 million and PAT Margin = 19%. 13
Shareholder’s funds sustained despite growth
initiatives

RM Billion
1H 2016
58.2
52.9
RM0.07 dividend per
43.6 ordinary share

24.8 24.7
RM560 million

22.7
dividend payout

53% dividend payout

Shareholder's Market Capitalisation
Funds
ratio

2014 2015 1H 2016

14
Capital expenditure allocated for existing assets and
future growth

Capital Expenditure (RM Billion)
Growth CAPEX mainly for

SAMUR, Aroma
3.3
3.0 Ingredients, 2-EH Acid,
2.6 HR-PIB and RAPID
Growth Petrochemical Projects

1.6 Operations

0.8
Operations CAPEX consists of

reliability and integrity
projects, turnaround
activities, value improvements
2012 2013 2014 2015 1H2016
and other operational
requirements

15
GROWTH
PROSPECTS

16
Our focus is to strengthen basic petrochemicals and
selectively diversify into specialty chemicals

Corporate Vision

The Preferred Chemical Company Providing Innovative Customer Solutions

Global
1 Strengthen basic petrochemicals

1 2 i. Achieve sustainable world class plant

performance
Regional ii. Competitive marketing capability with
regional presence

Local
2 Selectively diversifying into derivatives,
specialty chemicals and solutions

Basic Specialty i. Deliver innovative customer solutions to

Derivatives
Petchem Chemicals strengthen market position and protect value
ii. Diversification of petrochemicals into higher
value adding products
From resource-based to knowledge-based

17
SAMUR will propel PCG to be the second largest urea
producer in South East Asia

Sabah Ammonia and Urea

(SAMUR) Project

New world-scale, green field

Description / Location urea production facility at
Sipitang, Sabah

Feedstock Methane

Cost USD1.9 billion

Urea (1.20 mil mtpa)

Product / Capacity
Ammonia (0.74 mil mtpa)

Target
2H 2016
Commissioning

Product Usage Fertilisers

18
Aroma Ingredients, 2-EH Acid and HR-PIB will diversify
our portfolio into higher margin chemicals
Aroma Ingredients Project
Integrated Aroma Ingredients
Complex at existing BASF
PETRONAS Chemicals Integrated
Description / Location Petrochemical Complex in
Gebeng, Kuantan
Feedstock Isobutene, formaldehyde
Citral, Citronellol and L-Menthol
Product / Capacity (30 kmtpa)
Citral and Citronellol (2H 2016)
Target Commissioning L-Menthol (1Q 2017)
Home and personal care products,
flavours, fine fragrances, food
Product Usage ingredients,
pharmaceutical applications
Citral:
Citral: Citronellol:
Citronellol: Menthol:
Vitamins Citrus notes in Cooling effects in
perfumes personal care products
2-EH Acid Project
Higher value adding product (2-
Ethylhexanoic Acid (or 2-EH Acid)
at existing BASF PETRONAS
Chemicals Integrated
Petrochemical Complex in
Gebeng, Kuantan
Butanediol, propylene
2-Ethylhexanoic Acid
(30 kmtpa)
4Q 2016
PVC stabiliser, paint dryers,
synthetic lubricants, PVB
plasticiser, medical intermediates
and cosmetics
2-EH Acid:
HR-PIB Project
Intermediate product for the
manufacturing of fuel and
lubricant additives at existing BASF
PETRONAS Chemicals Integrated
Petrochemical Complex in
Gebeng, Kuantan
Isobutylene
Highly Reactive Polyisobutene
(50 kmtpa)
4Q 2017
Component to manufacture
fuel and lubricant additives, such
as fuel detergents or dispersants
for engine oils
HR-
HR-PIB:
19
RAPID
PETROCHEMICAL
PROJECTS

20
RAPID petrochemical projects are PCG’s major growth
plan

Petchem Refinery & PAMER

Plants Cracker

RAPID PIPC
PIC

Container
Terminal PDWT &
Power Plants RGT 2

21
World scale, fully integrated project and will be cost
competitive

PIC Investment
USD27 Bil
6 associated facilities

RAPID Investment
USD16 Bil
Refinery PETROCHEMICAL
220 kbd Petroleum Investment
Products USD2.6 Bil**

Steam Cracker Petrochemical products

3.15 mil mtpa

*Investment by PCG 22
Fully integrated facilities and infrastructure with
secure feedstock supply
Refinery and Cracker Petrochemical Plants
Naphtha & LPG
C2 (Ethylene) Commodities

300 kbpd C3 (Propylene) Differentiated

Crude Oil
Specialty
C4 (Butanediol) Chemicals
Refinery Steam Cracker

Supported by Ancillary Facilities

67%
PCP PDT2 UF PAMER RGT2 ASU
Pengerang Pengerang Utilities & Raw Water Regasification Air Separation
Co-generation Deepwater Facilities Supply Project Terminal Unit
Plant Terminal

23
Opportunity for capacity growth and portfolio
expansion
Nameplate Capacity (Mil MT)

3.15 16.0
2.0
10.8

Capacity Growth
2015 2016 - 2018 2019 2020
with world scale plants

Number of Products
10 ** 44
29 5*

Portfolio Expansion with

leading edge technology
2015 2016 - 2018 2019 2020

Notes:
PCG SAMUR & Specialties Projects RAPID
New Products
* Specialties Projects ** RAPID
1. Citral 1. Raffinate-2 6. Flexi PE
2. Citronellol 2. Homo PP 7. mLLDPE
3. L-menthol 3. Impact PP 8. TEG
4. 2-EH Acid 4. Random PP 9. Butadiene
5. HR-PIB 5. Terpolymer 10.INA
24
Successful execution of our growth projects will
elevate PCG as a key Asia Pacific player

Portfolio Positioning

• Methanol – AP #1, World #4 Secure & competitive feedstock supply

• MEG – SEA #1
1
Size • PP – SEA #1
• MTBE – SEA #1 Strategic location in SEA to benefit from
• Butanol – SEA #1 2 FTAs (AFTA, ACFTA, ASEAN + 3 & 6) & close
• Urea – SEA #2 to key growth markets
• Ethoxylates – SEA #2
• PE - > 1 mil MTPA capacity
Fully integrated facilities & infrastructure,
+ 3
large scale & diversified product portfolio
operated at world class level
 Population / middle class:
• MEG – Apparels
Mega- • Ethoxylates – Personal care 4
Portfolio of long term high value
trends • Methanol – Fuel & customers with lock-
lock-in position
construction
• Urea – Food
Portfolio of customized solutions to
5 generate higher sales premium and lock-
lock-in
 Mobile population
• PE – Food packaging position
• PP – EEV

25
MARKET
OUTLOOK

26
2016 remains challenging with continued uncertainty
in market conditions

We expect stabilized market sentiment for O&D and bearish F&M prices on the back of crude oil price
uncertainties and supply & demand balance

Olefins & Derivatives Fertilizers & Methanol

Heavy turnarounds in Excess supply and

Ethylene North East Asia amidst Urea sluggish demand
slow downstream
demand
Excess supply and
Low buying interest Ammonia limited demand from
Polymers beginning Q3 and firm industrial application
thereafter to meet
seasonal demand
Reliable supply at the
back of firm MTO
Firm polyester demand Methanol
MEG demand
despite potential excess
supply

Firm PTA & polyester

Aromatics demand despite long
supply

27
Focusing on execution in challenging environment

 Sustain world class operational excellence

• Maximise plant utilisation via effective asset management and
feedstock supply reliability
• Cost optimisation
• Maintain good HSE performance

 Extract more value through commercial excellence

• Expand presence in key market segments
• Improve customer experience
• Optimise cost-to-serve

 Effective project delivery

• Commercial operations of SAMUR, Aroma Ingredients Complex
• Project execution of 2-EH Acid, HR-PIB, RAPID petrochemicals

28
APPENDICES

29
PCG Corporate Structure

64.35%
PETRONAS Chemicals Group Berhad

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
PETRONAS PETRONAS PETRONAS PETRONAS PETRONAS PETRONAS PETRONAS PETRONAS PRPC PRPC PRPC PETRONAS Kertih Port
Chemicals Chemicals Chemicals Chemicals Chemicals Chemicals Chemicals Chemicals Polymers Glycols Sdn Elastomers Chemicals Sdn Bhd
Methanol MTBE Derivatives Glycols Polyethylene Ammonia Fertiliser Fertiliser Sdn Bhd Bhd Sdn Bhd Marketing
Sdn Bhd Sdn Bhd Sdn Bhd Sdn Bhd Sdn Bhd Sdn Bhd Kedah Sabah Sdn Bhd
Sdn Bhd Sdn Bhd

88% 87.5% 70% 63.44% 60% 100% 100% 100% 100% 99.99% (1)

PETRONAS PETRONAS PETRONAS ASEAN PETRONAS Vinyl Polypro- PETRONAS PCM (China) PCM
Chemicals Chemicals Chemicals Bintulu Chemicals Chloride pylene Chemicals Company (Thailand)
Olefins Ethylene Aromatics Fertilizer LDPE (Malaysia) Malaysia Marketing Limited Company
Sdn Bhd Sdn Bhd Sdn Bhd Sdn Bhd Sdn Bhd Sdn Bhd Sdn Bhd (Labuan) Ltd Limited

20% 40% 30% 30% 0.01% 40%

Malaysian BASF Idemitsu BP PCM Chemical Kertih
NPK PETRONAS SM PETRONAS India Private Terminals
Fertiliser Chemicals (Malaysia) Acetyls Limited (2) Sdn Bhd
Sdn Bhd Sdn Bhd Sdn Bhd Sdn Bhd

Wholly-
Wholly-owned subsidiaries

Partly-
Partly-owned Subsidiaries

Joint ventures and associates

(1) Wholly-owned subsidiary as remaining shareholding is held through other subsidiaries within PCG (1 share held by Polypropylene Malaysia Sdn Bhd & 1 share held by
PETRONAS Chemicals Marketing (Labuan) Ltd)
(2) Subsidiary pursuant to Malaysian Financial Reporting Standards 10
30
PCG Key Management

Significant experience in the petrochemical industry with proven track records

Datuk Sazali Rashidah M Yusri Akbar Abdul Aziz

Hamzah Alias M Yusof Md Thayoob Othman

Managing Director / Chief Head of Head of Head of Strategic

Chief Executive Officer Financial Officer Manufacturing Commercial Planning and
Ventures

 More than 25 years  More than 21 years  Served PETRONAS  More than 25 years  More than 26 years
in the industry experience, of which for the past 27 years in the industry in the industry.
 Led Corporate 18 years in the  Led the Process and  Involved in the  Been in various
Strategic Study on industry Technology Peninsular Gas planning and
enhancing plant  Fellow of the Institute Department and Pipeline project and strategic
performance and of Chartered plant Technical the Lateral Gas development
operational Accountants in Services Pipeline System for positions within
excellence Australia and New  Previously plant the country PETRONAS.
 Previously Zealand and Member head, PETRONAS  Previously Head,  Previously CEO,
MD/CEO, of the Malaysian Chemicals Olefins, Retail Division, Vinyl Chloride
PETRONAS Institute of Glycols and PETRONAS (Malaysia) Sdn. Bhd.
Penapisan Melaka Accountants Derivatives Sdn. Dagangan Berhad
Sdn. Bhd.  Previously Senior Bhd.
General Manager of
Group Treasury in
PETRONAS
31
PCG Existing Production Capacity
Plant Location Nameplate Capacity Plant Location Nameplate Capacity
PETRONAS Chemicals Kertih 400,000 mtpa BASF PETRONAS Gebeng 910,000 mtpa
Ethylene Sdn Bhd ethylene Chemicals Sdn Bhd (1) crude acrylic acid, glacial acrylic
(1 plant) acid, butyl acrylate, 2-ethyl hexyl
3 complexes: acrylate, 2-ethylhexanol, butanols,
PETRONAS Chemicals Kertih 300,000 mtpa
• Acrylics Complex phtalic anhydride, palatinol,
Polyethylene Sdn Bhd HDPE/LLDPE and pipe grade PE
• Oxo-Alcohols/Syngas butanediol)
(1 plant)
Complex
PETRONAS Chemicals Kertih 684,720 mtpa • Butanediol complex
Olefins Sdn Bhd ethylene and propylene PETRONAS Chemicals Gebeng 815,000 mtpa
(1 plant) MTBE Sdn Bhd MTBE, propylene, and n-butane
(2 plants)
PETRONAS Chemicals Kertih 410,000 mtpa
Derivatives Sdn Bhd ethoxylates, ethanolamines, glycol PETRONAS Chemicals Labuan 2,331,000 mtpa
(4 plants) ethers, butanol, butyl acetate, Methanol Sdn Bhd methanol
nonylphenol ethoxylates, (2 plants)
polyethylene glycol and polyalkaline
glycol ASEAN Bintulu Fertiliser Bintulu 1,200,000 mtpa
Sdn Bhd urea and ammonia
PETRONAS Chemicals Kertih 765,000 mtpa (1 plant)
Glycols Sdn Bhd ethylene oxide and ethylene glycols
(1 plant) PETRONAS Chemicals Gurun 1,149,700 mtpa
Fertiliser Kedah Sdn Bhd urea, ammonia, and methanol
PETRONAS Chemicals Kertih 255,000 mtpa (1 plant)
LDPE Sdn Bhd LDPE
(1 plant) PETRONAS Chemicals Sabah 1,940,000 mtpa
Fertiliser Sabah Sdn Bhd urea and ammonia
PETRONAS Chemicals Kertih 687,700 mtpa Project SAMUR under
Aromatics Sdn Bhd paraxylene and benzene construction
(1 plant) (1 plant)
Malaysian NPK Fertilizer Gurun 310,000 mtpa
PETRONAS Chemicals Kertih 1,132,400 mtpa Sdn Bhd (1) NPK
Ammonia Sdn Bhd ammonia, oxogas, and carbon (1 plant)
(1 plant) monoxide

BP PETRONAS Acetyls Kertih 500,000 mtpa Idemitsu Styrene Pasir 240,000 mtpa
Sdn Bhd (1) acetic acid Monomer Malaysia Sdn Gudang styrene monomer
(1 plant) Bhd (1)
(1 plant)
(1) Associate company
32
PCG RAPID Petrochemical Projects Capacity

Plant Location Nameplate Capacity

PRPC Polymers Sdn Bhd Pengerang 1,750,000 mtpa

polypropylene, mLLDPE,
flexi-PE (under evaluation)

PRPC Glycols Sdn Bhd Pengerang 1,400,000 mtpa

ethylene oxide, MEG, DEG, TEG

33
Advantageous arrangements for gas feedstock

PC Fertiliser, Gurun PC Methanol, Labuan

• Methane based • Methane based
3 • Feedstock linked to 5 Project SAMUR, Sipitang
• Feedstock linked to
Kertih IPC
6 • Methane based
market prices market prices
1 • Mainly Ethane based(1) • Feedstock linked to market
• Feedstock in line with avg. prices
ME Ethane producers
Peninsular Gas 2 Gebeng IPC
4 ABF, Bintulu
Utilisation pipeline • Methane based
• Propane & Butane based
network • Feedstock linked to
• Feedstock linked to Saudi
Aramco CP market prices
Gas fields
and pipelines
(illustrative)

Ethane (as feedstock)
Use • By-product of gas separation
and processing
• Used in production of olefins
and its derivatives
• PCG is only user and customer
Pricing • Broadly fixed prices in long
volatility term, negotiated contracts
• Relatively low cost base
Methane (as feedstock) Methane (as fuel gas)
Raw material in production of Process (furnace), Utilities and
methane based products power generation
• Linked to end-product market • Regulated prices
prices and moves accordingly- • Subject to removal of subsidy
margin protection and moving towards market
prices

(1) Other feedstock in Kertih IPC: Butane, Methane and Heavy Naphtha
34
Robust margins from competitive feedstock supply

PCG

Source: IHS, July 2016 35

Close to key growth markets

Shipping Malaysia Middle East USA**

Days* (Kertih) (Jubail, Saudi Arabia) (Houston, Louisiana)

China (Xiamen) 6 days 19 days 37 days

Japan
(avg. Shimizu, Sakai, Kobe, 9 days 23 days 34 days
Mizushima)

Taiwan (Kaohsiung) 6 days 19 days 37 days

Indonesia (avg. Surabaya,
4 days 16 days 42 days
Semarang)
Thailand (Bangkok) 3 days 16 days 43 days

• Smaller ships and smaller
loads economically viable
• Less crowded routes
Shipping Considerations
• More frequent vessels
• Only large ships to • Only large ships to
maintain economies of maintain economies
scale of scale
• Potential delay through
crowded Straits of
Malacca

* Assuming 12 knots/hr average cruising speed

** via Panama Canal

Source: sea-distances.org 36
Market Overview 2015-2016
Ethylene, LDPE, Aromatics, Fertilisers & Methanol

1,600 Ethylene & LDPE

1,400
USD/mt
mt

1,200
USD/

1,000
Ethylene
800
LDPE
600

1,000 Aromatics
900
USD/mt
mt

800
USD/

700
Paraxylene
600
Benzene
500

600 Fertilisers & Methanol

500
USD/mt
mt

400
USD/

300 Methanol
Urea
200
Ammonia
100

37
 THANK YOU

For 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.my
www.petronaschemicals.com.my

These presentations and/or other documents have been written and presented by PETRONAS Chemicals Group Berhad (“PCG”). PCG is solely responsible for the
accuracy and completeness of the contents of such presentations and/or other documents. J.P. Morgan does not have any responsibility for or control over the
contents of such presentations and/or other documents.

No endorsement is intended or implied notwithstanding the distribution of the presentations and/or other documents at J.P. Morgan’s Asia Pacific CEO-CFO
Conference 2016. The materials and information in the presentations and other documents are for informational purposes only, and are not an offer or
solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice.
38