PCG current competitive advantage and performance Investor... · •PCG current competitive advantage and performance •PCG’s next big growth project –RAPID •RAPID further

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• PCG current competitive advantage and performance

• PCG’s next big growth project – RAPID

• RAPID further strengthens PCG as a key Asian player

• Strong financials to fund growth projects and pay dividend

1. Fully integrated facilities and

infrastructure

2. Secure and competitive

feedstock supply

3. Capacity growth with world

scale plants

4. Portfolio expansion with

leading edge technology

5. Strategically located

6. Greater market leadership

7. Attractive growth markets

8. Attractive returns

• PCG current competitive advantage and performance

• PCG’s next big growth project – RAPID

• RAPID further strengthens PCG as a key Asian player

• Strong financials to fund growth projects and pay dividend

1. Fully integrated facilities and

infrastructure

2. Secure and competitive

feedstock supply

3. Capacity growth with world

scale plants

4. Portfolio expansion with

leading edge technology

5. Strategically located

6. Greater market leadership

7. Attractive growth markets

8. Attractive returns

5

6

7Note: Not to scale, for illustrative purpose only

40

50

60

70

80

90

100

SAMUR

8

40.00

50.00

60.00

70.00

80.00

90.00

100.00

Plant Utilization Target @ 90%

World class Plant Utilization @ 85%

• PCG current competitive advantage and performance

• PCG’s next big growth project – RAPID

• RAPID further strengthens PCG as a key Asian player

• Strong financials to fund growth projects and pay dividend

1. Fully integrated facilities and

infrastructure

2. Secure and competitive

feedstock supply

3. Capacity growth with world

scale plants

4. Portfolio expansion with

leading edge technology

5. Strategically located

6. Greater market leadership

7. Attractive growth markets

8. Attractive returns

10

• PCG current competitive advantage and performance

• PCG’s next big growth project – RAPID

• RAPID further strengthens PCG as a key Asian player

• Strong financials to fund growth projects and pay dividend

1. Fully integrated facilities and

infrastructure

2. Secure and competitive

feedstock supply

3. Capacity growth with world

scale plants

4. Portfolio expansion with

leading edge technology

5. Strategically located

6. Greater market leadership

7. Attractive growth markets

8. Attractive returns

Liquid Bulk Terminal

Utilities, Interconnecting & Offsite

Raw Water Supply Project

Regasification Terminal

PengerangCo-generation Plant

Air Separation Unit

PENGERANG INTEGRATED COMPLEX (PIC)

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1

Ethylene PropyleneButadiene

Naphtha

Propylene

300 kbpd Crude Oil

PENGERANG INTEGRATED COMPLEX (PIC)

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2

Secure and competitive feedstock

PENGERANG INTEGRATED COMPLEX (PIC)

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3

Company Product (s) Nameplate Capacity (tpa)

PRPC Polymers Polypropylene 1,750,000

mLLDPE

Flexi-PE (under evaluation)

PRPC Glycols EO (intermediate) 1,400,000

MEG, DEG, TEG

PRPC Elastomers EPDM 350,000

ESBR, SSBR, HCBR

TOTAL 3,500,000

PENGERANG INTEGRATED COMPLEX (PIC)

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4

PENGERANG INTEGRATED COMPLEX (PIC)

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5

Asia Pacific

Real GDP growth (2016-2017)

ASEAN: 4.6%

China: 6.4%

India: 7.8%

#1 producer of PP in

Southeast Asia

#1 producer of MEG in

Southeast Asia

#1 sole producer of EPDM in

Southeast Asia

PENGERANG INTEGRATED COMPLEX (PIC)

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6

PENGERANG INTEGRATED COMPLEX (PIC)

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7

PENGERANG INTEGRATED COMPLEX (PIC)

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Polymer demand: Film and sheet (50% of PE, 24%

of PP) includes food packaging, trash bags, stretch film, shrink film

Blow molding and injection molding (25% of PE, 33% of PP) includes bottles, thin wall injection molding, auto parts

Raffia (slit tape) (19% of PP) includes 25 kg shipping bags, flexible intermediate bulk containers (FIBC)

PENGERANG INTEGRATED COMPLEX (PIC)

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PENGERANG INTEGRATED COMPLEX (PIC)

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PENGERANG INTEGRATED COMPLEX (PIC)

22

PENGERANG INTEGRATED COMPLEX (PIC)

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PENGERANG INTEGRATED COMPLEX (PIC)

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PENGERANG INTEGRATED COMPLEX (PIC)

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Polyester demand: Still has >1.5x elasticity to

world GDP

PET bottle packaging continues to grow

Clothing – substitution from cotton and other fibres

Other niche but growing applications which require fibres, e.g. diapers, carpet, tyre cord, seat belts, etc.

PENGERANG INTEGRATED COMPLEX (PIC)

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PENGERANG INTEGRATED COMPLEX (PIC)

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8

Note: Not to scale, for illustrative purpose only2014 MYR/USD = 3.50

• PCG current competitive advantage and performance

• PCG’s next big growth project – RAPID

• RAPID further strengthens PCG as a key Asian player

• Strong financials to fund growth projects and pay dividend

1. Fully integrated facilities and

infrastructure

2. Secure and competitive

feedstock supply

3. Capacity growth with world

scale plants

4. Portfolio expansion with

leading edge technology

5. Strategically located

6. Greater market leadership

7. Attractive growth markets

8. Attractive returns

PENGERANG INTEGRATED COMPLEX (PIC)

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RM9.3bn cash (Sep ‘15)

EBITDA 2016-2019

Debt up to 2x EBITDA

Proj. Fin. up to 2x DSCR

Dividends

Capex for growth

Starting cash

Strong internal cash flow

Untapped debt capacity

Project finance capacity

Taxes & dividends

Other capex

US$3.9bn investment

Tax breaks

Taxes

Note: Not to scale, for illustrative purpose only

• PCG current competitive advantage and performance

• PCG’s next big growth project – RAPID

• RAPID further strengthens PCG as a key Asian player

• Strong financials to fund growth projects and pay dividend

1. Fully integrated facilities and

infrastructure

2. Secure and competitive

feedstock supply

3. Capacity growth with world

scale plants

4. Portfolio expansion with

leading edge technology

5. Strategically located

6. Greater market leadership

7. Attractive growth markets

8. Attractive returns

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