I l

dbAccess Thailand and Malaysia Corporate Days

Thursday, 31 May – Friday, 1 June 2012, London

Deutsche Bank, Winchester House

1 Great Winchester Street

London EC2N 2DB

PETRONAS DAGANGAN BERHAD

2. Financial Review for YTD March 2012

3. Business Performance Review for

YTD March 2012

1. Overview of PETRONAS Dagangan Bhd

CONTENT

Financial Performance Review For YTD March 2012

En Rozaini M SaniChief Financial Officer

PETRONAS Dagangan Berhad (PDB) is the domestic marketing subsidiary of

Petroliam Nasional Berhad (PETRONAS owns 69.9%).

Its principal activities are the marketing and distribution of petroleum products

in Malaysia.

PDB was incorporated on 5 August 1982 and was converted to a public company

on 21 August 1993.

Shares of the Company were listed on the Main Board of the Bursa Malaysia

Securities Berhad on 8 March 1994.

4

Corporate Profile

2000 Launching of Primax & Sprinta 5000

2001 Launching of PDB Customer Service

Centre

2006 Launching of PETRONAS PRIMAX 3

2008 Acquired Lub Dagangan Sdn Bhd

2009 Introduced PETRONAS Urania, PRIMAX

95 and Dynamic Diesel

Introduction of New Mesra Loyalty

Programme

2010 Mesra Shoppe and PETRONAS Cards

Centre opened in KLCC

Introduced PRIMAX 97, Syntium Moto, M-

Plus and NGV Lube

Launch of 950th station at Taman Dagang,

(Nov)

2011 Introduced PETRONAS Nautimar FBO

(Feb)

Launch of PETRONAS PRIMAX 95 Xtra,

replacing PRIMAX 3.

2012 Launched PETRONAS Durance, a range

of high quality car care products that

were developed by its Italy-based sister

company, PETRONAS Lubricants

International (PCI)

1975 - Petronas established the

Domestic Marketing Department

1977 - Market entry : Bunkering at Pasir

Gudang, aviation at Penang and Senai

1979 - Operate skid tank station due to

diesel crisis

Building the Brand… Brand of 1st choice

1970s The new millennium1980s-1990s

The Beginning…

1981 Operated first service station. Entered

LPG market

1982 Incorporated as PDSB on 5 August

1992 Introduced Natural Gas for vehicles

(NGV)

1993 Converted to a public company on 21

August 1993

1994 Listed on the Kuala Lumpur Stock

Exchange (KLSE)

1996 Station reimaging and Mesra C-Store

1999 Introduction of Loyalty Programme

(Mesra Card)

Milestones

PETRONAS

DAGANGAN BHD

Ownership &

operation of aircraft

refueling system at

KLIA

Lube

marketing in

non-retail

market

Subsidiary

Associate

Operation of

MPP/KVDT

Operation of joint

depot &

bottling plant

Operation of bulk &

LPG terminal

in Kuching

Ownership/

Operatorship/

Maintenance of CODT

KAFS SDN BHD

PDB: 65%

MAHB: 20%

MAS: 15%

LUB DAGANGAN

PDB: 100%

PS PIPELINE S/B

PDB: 50%

SHELL: 50%

PS TERMINAL S/B(TAWAU & BINTULU)

PDB: 50%

SHELL: 50%

IOT MGMT S/BPDB: 20%

SHELL: 10%

Senari Synergy SB: 70%

ACDSBPDB: 20%

SHELL TIMUR :20%

Senari Synergy SB: 60%

Group Structure

MD/CEO

Corporate

Services

Commercial

BusinessRetail

Business

Lube

Business

Finance

Services

LPG

Business

Supply &

Distribution

HRM

Division

Internal

AuditProject

Mgmt

*PMO/CMDChief Operating

Officer

Legal &

Secretariat

Operation

Performance

Improvement

Strategic

PlanningHSE

*PMO – Project Management Office

CMD – Change Management Dept.

PDB Organization Structure

Supply and Logistics

S A R A W A K

S A B A H

P E N I N S U L A RM A L A Y S I A

B R U N E I

Kedah

Number of terminals

Fuel– 17

LPG – 9

Aviation – 12

TOTAL: 38

Langkawi

Prai

Melaka

KL/ Selangor

Lumut

Johor

Kertih

Kuantan

Penang

Pahang

Perak

Perlis

Terengganu

Kuching

Sibu

Bintulu

Miri

Labuan

Sep. Bay

Sandakan

Tawau

Joint Venture depots and facilities are:

i) MPP KVDT Bulk Depot

ii) Bintulu Bulk Depot

iii) Tawau Bottling Plant and Bulk Depot

iv) KLIA Aviation Depot

v) ASB JV for Bunkering facilities

vi) IOTM Senari

vii) CODT Tg Manis

Key Events / Highlights

• The Malaysian economy expanded by 5.2 per cent in the fourth quarter last year, leading to agrowth of 5.1 per cent for the whole year.

• Oil prices have risen during the quarter from the range of USD 117 to USD 135 per barrel duringthe quarter which has positively impact PETRONAS Dagangan Bhd’s (PDB) gross margins.

• On 28 May 2012, 21 projects worth over RM20 billion announced by the Prime Minister under theEconomic Transformation Programme (ETP).

• In 2012, private investment is forecast to climb 15.9%, supported by foreign and domesticinvestment.

• PDB achieved higher average selling prices (5.0%) and slight increase in sales volume (1.5%) for theperiod ended 31 March 2012 as compared to same period last year.

• Sales Volume, current period performance is higher than same period last year.

• PDB has just recently announced first interim dividend of 17.5 cent payable on June 2012 and 45cent interim dividend for the first quarter 2012 . PDB proposed 35 cent special dividend to beannounced at the Annual General Meeting (AGM) also in June 2012.

Key Financial Highlights

Qtr ended 31/03/2012 vs Qtr ended 31/03/2011

COMPREHENSIVE INCOME

Revenue increased by 7.4% to RM6,852.8 million from RM6,382.7 million

Profit Before Tax increased by 7.6% toRM339.7 million from RM315.6 million

As at 31/03/2012 vs as at 31/12/2011

FINANCIAL POSITION

Shareholders funds increased by 2.8% to RM4,913.3 million from RM4,778.9 million

Cash balances increased to RM766.4 million compared to RM470.2 million

Key RatiosAs at

31/12/2011As at

31/03/2012

Earnings Per Share (sen) 87.9* 99.1*

Return on Revenue (%) 4.0 3.6

Return on Equity (%) 18.2* 20.6*

Return on Total Assets (%) 12.2* 14.4*

* Annualised based on year to date figures as at 31 March 2012

Revenue

2,110.6

2,387.4

1,402.2

324.7364.6

115.4147.9

1,976.9

2,243.3

1,240.2

341.5

325.7109.8

145.3

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

Mogas Diesel Aviation Fuel Oil LPG Lube Others

RM'Mill

Q1 FY2012

Q4 FY2010/11

6,852.8 6,382.77.4

Q1 2012(RM Mil)

Q4 10/11(RM Mil)

+ / -(%)

Mogas31%

Diesel35%

Aviation20%

Fuel Oil5%

LPG5%

Lube2%

Others2%

Q1 FY2012

Consolidated Statement of Comprehensive Income : Qtr ended 31/03/12 vs Qtr ended 31/03/11

Gross Profit 629.4 592.76.2

Consolidated Statement of Comprehensive Income: Qtr ended 31/03/12 vs Qtr ended 31/03/11

Q1 2012(RM Mil)

Q4 10/11(RM Mil)

+ / -(%)

294.1

196.2

31.2

3.7

63.6

26.5 14.0

271.7

192.4

22.6 20.4

57.3

25.2

3.1

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Mogas Diesel Aviation Fuel Oil LPG Lube Others

RM' Mill

Q1 FY2012

Q4 FY2010/11

Mogas47%

Diesel31%

Aviation5%

Fuel Oil1%

LPG10%

Lube4%

Others2%

Q1

FY2012

Profit Before Taxation increased by RM24.2 million from previous corresponding quarter, due to higher gross profit and other income offset by higher operating expenditures.

280

290

300

310

320

330

340

Qtr Ended 31 March 2012

Qtr Ended 31 March 2011

339.7

315.5

RM Mill'

Profit Before Taxation

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Quarter Ended 31 March 2012

Quarter Ended 31 March 2011

328.7 312.0

38.7 34.6

RM Mill'

OPEX Other Income

Profit Before Taxation increased by RM32 million from Qtr Ended 31 Dec 2011.

280

290

300

310

320

330

340

Qtr. Ended 31 March 2012

Qtr. Ended 31 Dec. 2011

339.7

307.7

RM Mill'

Profit Before Taxation

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Qtr Ended 31 March 2012

Qtr. Ended 31 Dec. 2011

328.7 313.2

38.7 33.1

RM Mill'

OPEX Other Income

4,000.0

4,100.0

4,200.0

4,300.0

4,400.0

4,500.0

4,600.0

4,700.0

4,800.0

4,900.0

5,000.0

31/03/2012 31/03/2011

4,913.3

4,794.9

RM Mill'Shareholder's Fund

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

31/03/2012 31/03/2011

766.4

1,026.2

RM Mill'Cash Balance

Shareholder’s funds improved whilst Cash Balance decreased during the quarter

Shareholder’s funds and cash balances improved during the quarter.

4,000.0

4,100.0

4,200.0

4,300.0

4,400.0

4,500.0

4,600.0

4,700.0

4,800.0

4,900.0

5,000.0

31/03/2012 31/12/2011

4,913.3

4,778.9

RM Mill'Shareholder's Fund

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

31/03/2012 31/12/2011

766.4

470.2

RM Mill’Cash Balance

Increase in cash balance was mainly due to reduction in outstanding subsidy receivables

267

140210

269

86

479

299

190147

192255

277 373

271

875

653

751826

666

1,138

836880

678

366

193

393

538

1,015

863

1,020

912

1,145

1,437

1,026 1,027

870

621

470

766

0

200

400

600

800

1000

1200

1400

1600

RM' Mill Cash & Bank Balances

Cash & Bank

Deposits

Total

1,020

854

882 897 966

1,048

1,164 1,206

1,271

1,319

1,361

1,464

1519

1520

1447.27

1530

1596

6.70 7.35 7.90

8.55 8.92 8.70 9.05 9.27

10.1710.94

12.08

13.50

16.50

15.86

18.02

19.36

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

800

900

1000

1100

1200

1300

1400

1500

1600

1700

PETDAG vs KLCI

KLCI PETDAG

KLCI Index RM per Share

PDB’s share move in tandem with KLCI performance.

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FY

2005/06

FY

2006/07

FY

2007/08

FY

2008/09

FY

2009/10

FY

2010/2011FY 2011 FY2012

PDB P/E 7.99 9.53 12.01 13.57 11.96 18.85 20.02 21.30

Market PE 13.15 16.07 13.29 13.68 18.86 16.80 16.44 16.52

*Annualised based on 31 March 2012 results

50.8

64.5 66.6

75.8 75.7

87.5

65.9

99.1*

30

40

50

60

70

80

90

100

110

FY2005/06 FY2006/07 FY2007/08 FY2008/09 FY2009/10 FY2010/11 FY 2011 FY 2012

Earning Per Share

Earning Per Share

Due to shorter 9 months period

Earnings Per Share (EPS)

6.706.54

5.99

5.42

3.73

4.93 4.88

5.63 5.70

5.00

4.254.03

3.58

4.64

3.38 3.36

4.775.02

2.83

3.45

3.90

3.43

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

FY2004/05 FY2005/06 FY2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011* FY2012

PDB Dividend Yield - With Special Dividend

PDB Dividend Yield - Without Special Dividend

Market Dividend Yield

* Annualised based on the total dividend declared for FY2011

PDB’s dividend yield remain higher than market dividend yield

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0

10

20

30

40

50

60

70

80

90

100

FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY2011 FY2012

12 12 15

30

45

17.5

1033 33 30

3515

25

35

Sen Per Share Final - Special

Final

Interim - Special

Interim

FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011 FY 2012

Dividend Net (RM) 332,907 335,291 447,054 745,090 596,072 130,391

Net Dividend excluding special dividend/ PAT (%) (Payout) 51% 59% 45% 55% 51% 54%

PDB has announced an interim dividend on 21st May 2012

CAGR (with Dividend Reinvestment) – 19.8%Share Price (RM)

On 24.02.05 Bonus Issue at a ratio 1:1

Up to FY02/03 FY03/04 FY04/05*

FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY 2011 FY2012

No of Shares(with Dividend Reinvestment)

1,350 1,406 2,887 2,990 3,096 3,225 3,363 3,530 3,691 3,737 3,842

18 years 15 years 10 years 5 years 3 years 2 years 1 year

TSR %

(with Dividend Reinvestment)

19.8% 17.0% 25.4% 31.7% 36.8% 44.3% 19.5%

2.80

4.82

6.65

4.28 4.185.13

7.00

3.98 4.06

6.15

8.009.05

16.50

18.94

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

Mar 94Mar 95Mar 96Mar 97Mar 98Mar 99Mar 00Mar 01Mar 02Mar 03Mar 0423 Feb 0524 Feb 05Mar 05Mar 06Mar 07Mar 08Mar 09Mar 10Mar 11Dec 11Mar 12

PDB Total Shareholder Return as at 31 March 2012

Business Performance Review For YTD March 2012

1. Malaysian Economic

2. Business Performance

3. Business Outlook and Key Focus Area

Although the Malaysian economy is affected by global developments,

domestic demand has continued to support growth, driven by firm

consumption and investment activities

• Private consumption is supported by the employment conditions, income growth with introduction of minimum

wage policy and public sector measures. Investment activities are mainly led by the domestic-oriented industries,

the commodity sector and the public sector.

• Domestic demand is expected to continue to support growth in 2012. Private consumption growth is expected to

decelerate modestly due to BNM‟s prudent measures to rein in credit growth, particularly in the private debt

market as evident in the declining approvals for personal loans, housing loans and car loans.

•Business Confidence Index improved in the early 2012 due to dependent on domestic demand to drive growth

despite the external headwinds.

Source : CIRU-PETRONAS& BNM

• YTD March volume is above SPLY by 1.5% against SPLY.

• Slight growth in Q1 was mainly contributed by higher Diesel, Aviation and Fuel Oil sales.

Mil L

itre

sYTD Volume

3,429.1 3,481.3

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

SPLY YTD March FY2012

1.5 %

Slight volume growth in tandem with moderate economic performance

RETAIL BUSINESS

COMMERCIAL BUSINESS

LPG BUSINESS

LUBRICANTS BUSINESS

Achievement

8 March 2012, PERODUA signed RM225 million deal with PETRONAS Dagangan

Bhd

22 March 2012, Malaysian Largest Haulage Service Provider, Konsortium Logistik

Berhad (KLB) Signs with PETRONAS Dagangan Berhad for Five Years Exclusive

Supply of Synthetic Engine Oil

Activities

1 Jan 2012, successfully opened 4 new business partners‟ outlets with our PSS.

And they are – Subway at PSS NKVE, McDonald‟s Restaurant and Maybank

FOREX at PSS Batu Feringghi, and Dunkin Donut‟s Cafe at PSS Seremban-Kuala

Lumpur (north bound).

5 Jan 2012, PDB Participates in CIMB Asean Series 2012: Malaysia Corporate

Day.

12 Jan 2012, PETRONAS Dagangan Berhad Joins in Welcoming the Emirates

A380 to KLIA

10 March 2012, launched PETRONAS Durance, a range of high quality car care

products along with the car air freshener series that were developed by its Italy-

based sister company, PETRONAS Lubricants International (PLI).

13 March 2012, Central 2 with the tagline “Do Different Gain XTRA” have come

upon with a comprehensive training programme called „Cabaran Krew PETRONAS‟

to create excellent customer service.

Key achievement and activities from Jan – Mar FY2012

Positive economic growth outlook for May 2012

• Private consumption is supported by the employment conditions, income growth with introduction of minimum wage policy and public sector measures.

• Investment activities are mainly led by the domestic-oriented industries, the commodity sector and the public sector.

•We expect FDIs to continue its growth due to the implementation of the ETP projects. Large-scale projects, such as the US$11.7 billion Kuala Lumpur Mass Rapid Transit System are likely to contribute positively to the financial account.

Source : CIRU-PETRONAS & BNM

Key Focus Area

• Retail Business

• Achieving market leadership

• Increasing throughput volume

• Opening new stations

• Commercial Business

• Maintain and strengthen market

leadership

• Focus on primary target market

and quality customers

• LPG Business

• Maintain market leadership

• Improve on product network

availability and customer service

• Lube Business

• Aggressive market penetration

• Expand product range to include

fighting brand

Thank you