AGILITY TO COLLABORATE

FOR DYNAMIC GROWTH

Datuk Sazali Hamzah MD/CEO

PETRONAS CHEMICALS GROUP BERHAD (PCG)

MALAYSIA

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Petrochemical Journey

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What the future holdsWhat we used to be

• Old technology• Mass production • Less regulation • Less competition • Sellers market• Good margin for

commodities

Where we are now

• Mix of old & new technology

• Commoditisation• Stringent regulation • More competition • Buyers market • Customised solutions• Niche/specialty is growing

• Faster growth • Commodities is still a game • Growing opportunity in

specialty/ niche• Technology and innovation

is a game changer • Borderless and everybody

can play

Petrochemical industry will continue to evolve

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Collaboration to create value is important to pursue opportunities

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PCG’s Collaboration

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PCG grows strategically through collaborations

Production Capacity (mil mtpa)

0.5

2.2

2.9 3.1

6.9

8.9

11.0 10.8

12.7

14.6

1985 1988 1992 1995 1998 2001 2004 2007 2010 2013 2017 2020

Urea & ammonia in Bintulu

Propylene, polypropylene & MTBE in Gebeng

Methanol in Labuan

Ethylene & polyethylene in Kertih

Urea, ammonia & methanol in Gurun

Benzene, paraxylene, ammonia, VCM, polyvinyl chloride & acetic acid in Kertih

Expand urea, & ammonia in Bintulu

Mega methanol in Labuan

Olefins, glycols & derivatives in Kertih

Urea & ammonia in Sabah

PC Fertiliser Kedah

PC Aromatics

PC OGDABF

PC MTBE

PC Methanol

PC Fertiliser Sabah

PCASB

Exit vinyl and PP business

PIC in Pengerang

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PCG’s first venture into petrochemical via collaboration

• Malaysia, Indonesia, Singapore, Thailand, Philippines

• Each with its strength

• Resource owner• Operations experience• Business acumen• Market reach

ASEAN Bintulu Fertilizer, ABF

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• Multi JVs

• Each partner with its strength

• Resource / Molecule• Technical / Technology• Operations experience• Business acumen• Market reach

Kerteh & Gebeng Integrated Petrochemical Complexes

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Through collaborations PCG grows further

• Secure and competitive feedstock supply

• Mega project execution

• Investment risks

• Fully integrated facility

• Marketing capabilities

Pengerang Integrated Petrochemical Complex

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Continuing our collaboration for future progress

Business collaborations transcend boundaries

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Non-traditional peers

Suppliers

Customers

Broader ecosystem

Collaboration models that are multi-dimensional..

.. have proven effective in delivering key outcomes

Risk management

Cost reduction

Growth and innovation

Capital optimisation

3

2

1

4Source: A.T. Kearney

Business collaborations transcend boundaries

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Quantum computing in materials science innovation

Platform for sustainable, cost-effective production

Reliable, safe and scalable hydrogen supply solutions

+

=New acceleration of product and

process development

next-generation

computational methodologies (e.g., machine learning and sampling)

unique discovery

process/experimental design and innovation capabilities

electrolysis

technology to convert CO2 and water into hydrogen and CO using electricity

fermentation

process, converting gases containing carbon monoxide (CO) into useful products by metabolic processes

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=Renewable energy to convert CO2

to specialty chemicalsEmission-free mobility and cleaner

industry processes

specialized

catalyst to enable the release of hydrogen on demand

revolutionary

solution for storing and transporting large amounts of clean hydrogen from renewable sources

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=1. https://www.dow.com/en-us/news/press-releases/dow-and-1qbit-announce-collaboration-agreement-on-quantum-computing2. https://corporate.evonik.com/en/media/press_releases/corporate/pages/news-details.aspx?NewsId=72457 3. http://www.digitalrefining.com/news/1005089,Clariant_Catalysts_collaborates_with_Hydrogenious_Technologies.html#.W3Dlc40UmHl

Detailed sources:

Collaborations aligned for future growth

• Collaboration from many partners

• Stakeholders co-create value

• Techno provider to be flexible

• Grow together as tech partner

The Future

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THANK YOU

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