PETRONAS ChemicalsGroup Berhad

C O R P O R A T E P R O F I L E

PETRONAS Chemicals Group Berhad (459830-K)

Tower 1, PETRONAS Twin Towers,Kuala Lumpur City Centre,

50088 Kuala Lumpur, MalaysiaTel: 03-2051 5000 Fax: 03-2051 1501

Website: www.petronaschemicals.com

The Preferred Chemical CompanyProviding Innovative Customer Solutions

OURVISION

PETRONAS CHEMICALS GROUP BERHAD (PCG)is the leading integrated chemicals producer in Malaysia and one of the largest in Southeast Asia. It operates a number of world-class production sites, which are fully and vertically integrated from feedstock to downstream end-products.

With a total combined production capacity of over 12 million metric tonnes per annum (mtpa), it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol and other basic chemicals and derivative products. Listed on Bursa Malaysia and with three decades of experience in the chemicals industry, PCG was established as part of the PETRONAS Group to maximise value from Malaysia’s natural gas resources.

PCG is one of the top 10 companies in the FTSE4Good Bursa Malaysia (F4GBM) Index, out of 200 largest companies ranked by market capitalisation. It is committed to ensuring that its business practices are in line with globally recognised standards for Environment, Social & Governance (ESG) practices.

PCG ATA GLANCE

QUICKFACTS

THE GROUP COMPRISES 30 SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIESPRODUCING AND MARKETING A WIDE RANGE OF CHEMICAL PRODUCTS

Two major operating business segments:• Olefins and Derivatives• Fertilisers and Methanol

Two integrated petrochemical complexes:• Kertih, Terengganu• Gebeng, Pahang

Three manufacturing complexesthat produce fertilisers and methanol:• Gurun, Kedah• Bintulu, Sarawak• Federal Territory of Labuan

Total production capacity of over 12 million metric tonnes per annum (mtpa).

Largest methanol producer in Asia Pacific and 4th largest in the world.*

2nd largest producer of urea in South East Asia.*

3rd largest producer of LDPE in South East Asia.*

Sole producer of methanol, urea, paraxylene, methyl tertiary butyl ether (MTBE), ethanolamines, ethoxylates,glycol ethers, butanol and butyl acetates in Malaysia.

Joint-venture partners include BASF PETRONAS Chemicals Sdn Bhd, Kertih Terminals Sdn Bhd, Idemitsu SM (Malaysia) Sdn Bhd, BP PETRONAS Acetyls Sdn Bhd and Malaysian NPK Fertilizer Sdn Bhd.

*By capacity.

GROUPSTRUCTURE

as of 30.6.2014

PETRONAS

PETRONAS Chemicals Group Berhad

PETRONASChemicalsAmmoniaSdn Bhd

(PC Ammonia)

PETRONASChemicals Derivatives

Sdn Bhd(PC Derivatives)

PETRONASChemicals Fertiliser

Kedah Sdn Bhd(PC Fertiliser

Kedah)

Malaysian NPKFertilizer Sdn Bhd

PETRONASChemicals

OlefinsSdn Bhd

(PC Olefins)

PETRONASChemicals Fertiliser

Sabah Sdn Bhd(PC Fertiliser

Sabah)

PETRONASChemicals MTBE

Sdn Bhd (PC MTBE)

PETRONASChemicals

Glycols Sdn Bhd(PC Glycols)

PETRONASChemicals MethanolSdn Bhd

(PC Methanol)

PETRONAS Chemicals

PolyethyleneSdn Bhd

(PC Polyethylene)

PRPCGlycolsSdn Bhd

(PRPC Glycols)

100%PETRONASChemicals MarketingSdn Bhd

(PC Marketing)

PETRONASChemicals Marketing

(Labuan) Ltd(PC Marketing

Labuan)

100%Kertih Port

Sdn Bhd(KPSB)

100%Vinyl Chloride

(Malaysia)Sdn Bhd(VCMSB

100%100%100%100%

100%

20%

100%

100%

100%

88% 40%

Wholly-owned subsidiaries * Wholly-owned subsidiary as remaining shareholding is held through other subsidiaries within PCG** Subsidiary pursuant to Malaysian Financial Reporting Standard 10

Manufacturing Marketing & Sales Services

Partly-owned subsidiaries

Joint ventures and associates

100%Polypropylene

Malaysia Sdn Bhd(PPMSB)

100% 100%

PETRONASChemicalsEthyleneSdn Bhd

(PC Ethylene)

87.5%PETRONAS Chemicals AromaticsSdn Bhd

(PC Aromatics)

BASFPETRONASChemicals

Sdn Bhd

30% 30%

100%

IdemitsuSM (Malaysia)

Sdn Bhd

BP PETRONASAcetyls

Sdn Bhd

70%ASEANBintulu

FertilizerSdn Bhd

(ABF)

63.5%PETRONAS

Chemicals LDPESdn Bhd

(PC LDPE)

60% 40%Kertih

TerminalsSdn Bhd

PCM (China) Company

Limited (PC Marketing

China)

100%

PCM (Thailand) Company

Limited(PC Marketing

Thailand)

99.99%*

PT PCMKimia

(Indonesia)(PC Marketing

Indonesia)

99.67%*

PCMChemical

India PrivateLimited**

0.01%

PRPC Polymers Sdn Bhd

PETRONAS Chemicals Isononanol

Sdn Bhd

GROUPSTRUCTURE

We market a wide range of chemical products to customers in 30 countries worldwide particularly in Asia pacific. Besides Malaysia, our key markets include Thailand, Indonesia, Singapore, Vietnam, The Philippines, Northeast Asia, the Indian subcontinent, North America and Australasia.

In driving innovation into the very essence ofour products, customer solutions and culture,we openly, and with vigour, embrace challengesthat push us to the very limits of our creativity.Coupled with courage in taking calculated risks,we shall deliver breakthrough performance inthe key areas of operational excellence,innovation, marketing and sales.

Innovation is an important catalyst in the next phase of our growth journey. With it, we can better capitalise on our core strength as a fully integrated petrochemicals producer located strategically in Asia’s growth region, to grow from a basic petrochemical manufacturer to a provider of specialty products and innovative customer solutions.

We strive to create value for our stakeholders through a business model that is aligned with our shared values of professionalism, integrity, loyalty and cohesiveness. To this end, we are committed to strengthening our sales channels and presence of our products and solutions in the market in the most efficient, effective and sustainable manner.

DELIVERINGPERFORMANCE

COMMITTEDTO GROWTH

1985 1992

1995 1997 1999 2000 2002Commenced production of

styrene monomer in Pasir Gudang.

Commenced production of urea,

ammonia and methanol in Gurun.

Commenced production of olefins, glycols and derivatives at KIPC. Commenced

production of polyvinyl chloride in

Baria-Vung Tau, Vietnam.

Commenced productionof urea and ammonia in

Bintulu.

Commenced production of

propylene, polypropylene and MTBE at Gebeng

Complex. Acquired methanol plant in

Labuan.

Commenced production of acrylic acid at BASF PETRONAS Chemicals Sdn Bhd, Gebeng. Commenced production of

benzene, paraxylene, ammonia, vinyl chloride monomer,

polyvinyl chloride and acetic acid at KIPC.

Commenced production of ethylene

and polyethylene at Kertih Integrated Petrochemical

Complex (KIPC).

20042006200920102011 2012 2013 Expanded

production capacities of urea and ammonia in

Bintulu.

Expanded production

capacities of urea and ammonia in

Gurun.

Commissioning of mega methanol plant in Labuan.

Acquired interest in PETRONAS Chemicals Olefins Sdn Bhd,

PETRONAS Chemicals Glycols Sdn Bhd and PETRONAS

Chemicals Derivatives Sdn Bhd from Dow Chemicals.

Acquired interest in PETRONAS Chemicals

Ethylene and PETRONAS Chemicals Polyethylene from BP. Listed on Main Market

of Bursa Malaysia.

Sanctioned development and construction of a new world-scale fertiliser plant in Sipitang, Sabah

(SAMUR).

Took over marketing of chemicals and

performance chemicals in Indonesia and Singapore

from Dow Chemicals. Decision to discontinue

vinyl business.

Sanctioned development and construction of Asia

Pacific's largest Integrated Aroma

Ingredients Complex at BASF PETRONAS

Chemicals Sdn Bhd in Gebeng.

2014 2015 2016 2014Secured license for PETRONAS

Chemicals Marketing (Labuan) Ltd as Labuan International Commodity Trading Company. Incorporated

overseas marketing subsidiaries in Thailand - PCM (Thailand) Co Ltd and

China - PCM (China) Co Ltd.

Completed divestment of Phu My Plastics & Chemicals Co Ltd pursuant to decision

to discontinue vinyl business.

Sanctioned development and construction of 2-EHAcid and HR-PIB projects at BASF PETRONAS

Chemicals Sdn Bhd in Gebeng. Acquired 100% equity in PRPC Polymers Sdn Bhd, PRPC Glycols

Sdn Bhd and PRPC Elastomers Sdn Bhd which will undertake petrochemical projects as part of

Pengerang Integrated Complex in Pengerang.

Produced on-specification urea for SAMUR. Produced on-specification 2-EHAcid at BASF PETRONAS Chemicals Sdn Bhd. Sanctioned

development and construction of Flexi PE project at PRPC Polymers Sdn Bhd in Pengerang.

Incorporated overseas marketing subsidiary in Indonesia - PT PCM Kimia Indonesia.

OURMILESTONES

Our Olefins and Derivatives segment manufactures and sells a wide range of olefin and polymer products, from ethylene and propylene, which are used as basic feedstock for other products, to intermediate products such as ethylene oxide, ethylene glycol, butanol chemicals, as well as various ethylene oxide derivatives, including basic high performance chemicals.

Our Fertilisers and Methanol segment produces and sells methanol and a range of nitrogen, phosphate and compounded fertilisers.

UREA is essential for increasingcrop yields in the agricultural industry.It is used in direct application to cropsin granular form or as a component ina compound fertiliser.

CREATINGSOLUTIONS

PRODUCTPORTFOLIO

KEY PRODUCTS

KEY PRODUCTS

KEY PRODUCTS

OLEFIN, GLYCOLS & DERIVATIVES

POLYMERS

AROMATICS

MTBE

DESCRIPTION

DESCRIPTION

DESCRIPTION

FEEDSTOCK

FEEDSTOCK

FEEDSTOCK

APPLICATIONS

APPLICATIONS

APPLICATIONS

Polyethylene(LLDPE, HDPE,LDPE)

Solid resins producedfrom the polymerisationof ethylene

Ethylene Feedstock for manufacturing plastic products, including packaging films, wires, cables and ducting

Paraxylene

Ethylene

Propylene

MonoethyleneGlycol (MEG)

Diethylene Glycol (DEG)

Performance Chemicals

Benzene

Methyl TertiaryButyl Ether (MTBE)

A six-carbon ring structure molecule colourless, flammable liquid

A two-carbon molecule colourless gas converted from natural gas

A three-carbon molecule colourless gas converted from natural gas

A colourless hygrpscopic liquid derived from ethylene glycol

A colourless hygrpscopic liquid derived from ethylene glycol

Colourless liquids derived from ethylene oxide

A six-carbon ring structure molecule colourless, flammable liquid

A five-carbon molecule colourless liquid

Naphtha

Ethane

Propane

Ethylene Oxide

Ethylene Oxide

Ethylene Oxide,Ammonia, Fatty Alcohol

Naphtha

Butane,Methanol

Production of terephthalic acid, used in the manufacture of polyester for packaging applications, drink bottles and textiles

Feedstock for production of polyethylene, ethylene glycol, ethylene oxide (EO) and derivatives of EO

Feedstock for production of acrylics acids, acrylic esters and oco-alcohols

Feedstock for manufacturing polyester fibres, polyethylene terephthalate resins (PET) and an ingredient of antifreeze products

Ingredient in printing ink, pigments and dyes

Surfactants, gas-treating solvents and personal care products

Feedstock for manufacturing polystyrene used for packaging

Gasoline additive to boost octane level to improve burning of fuels and reduce emissions

METHANOL

Methanol Simplest organic alcohol, colourless, flammable liquid

Methane Production of formaldehyde, acetic acid, chloromethanes and methyl methacrylate, which in turn are used in the production of resins, adhesives, paints, plastics, flavourings, silicones and plexiglass

AMMONIA & FERTILISERS

Ammonia

Urea

A nitrogen and hydrogencompound colourless gas with a characteristic pungent odour

A high nitrogen-content organic solid

Methane,Hydrogen,Nitrogen

Ammonia,Carbon Dioxide

Feedstock for the production of urea and other industrial applications, including use as refrigerant and latexanti-coagulant

Fertiliser used for the supply of nitrogen to crops and raw material for manufacturing adhesives, moulding powders, varnishes and foams

KEY PRODUCTS

KEY PRODUCTS

DESCRIPTION

DESCRIPTION

FEEDSTOCK

FEEDSTOCK

APPLICATIONS

APPLICATIONS

KEY PRODUCTS DESCRIPTION FEEDSTOCK APPLICATIONS

JOINT VENTURE & ASSOCIATE PRODUCTSJOINT VENTURE & ASSOCIATE PRODUCTS

Butanediol

2-EHAcid

Styrene Monomer

Various NPK Grades of Fertilisers

Acetic Acid

Acrylics

Oxo-Alcohols

1,4-Butanediol (BDO): Colourless and almost odourless liquid

Tetrahydrofuran (THF): Colourless, water-miscible liquid with an ether-like odour

gamma-Butyrolactone (GBL): An industrial chemical with excellent solvency, little toxicity and few environmental hazards

Colourless to yellow liquid with a faint odour

A clear, colourless, flammable liquid with a distinctive aromatic odour

Clear colourless granules with a characteristic odour

Chemical intermediate in the form of a colourless liquid

Crude Acrylic Acid (CAA): Colourless, flammable, corrosive liquid with a strong odour

Glacial Acrylic Acid (GAA): Clear, colourless, corrosive, flammable liquid with a pungent odour

Butyl Acrylate (BA): Colourless,flammable liquid with a “fruity” smell 2-Ethylhexyl Acrylate (2-EHA): Clear, colourless liquid with a “fruity” smell

2-Ethylhexanol (2-EH): Clear, flammable liquid with a distinctive odour n-Butanol (n-Bol): Colourless, flammable liquid with an alcoholic odour iso-Butanol (i-Bol): Colourless, flammable liquid with an alcoholic odour Iso-butyraldehyde (i-BA): Colourless to yellow, flammable, toxic liquid with a strong odour Oxo Oil: Yellowish, flammable liquid with pungent odour

n-Butane

2-ethylhexenal (2-EHol)

Benzene,Ethylene

Urea, Ammonia, Phosphates, Potassium

Methanol, Carbon Monoxide

Propylene

Propylene

Butanediol and its derivatives are used in a broad spectrum of applications in the chemical industry; amongst others in the manufacturing of technical plastics, polyurethanes, solvents, electronic chemicals and elastic fibres Mainly used in the production of a polymer used to manufacture elastomers and fibres. THF is also a versatile solvent with applications in areas such as adhesives, vinyl films and cellophanes, industrial resins, elastomers, coatings and printing inks Used in the production of clinical needs, for filtering beverages and cleaning auxiliaries. GBL is also used for applications in conductor wafer cleaning in the electronics industry or high-tech industry as well as an intermediate for the synthesis of other chemicals.

Chemical intermediate used in esters for Polyvinylbutyral (PVB) film plasticisers and synthetic lubricants, in metal salts for paint dryers, in automotive coolants, PVC stabilisers, cosmetics and various other applications. In cosmetics, 2-EHAcid is used to produce emollients. Other applications include corrosion inhibitors in automotive coolants, catalyst for polymer production, raw material for acid chloride and fragrances.

Production of polystyrene which is used in packaging containers and high impact plastic such as acrylonitrile butadiene styrene (ABS), latex paints and most synthetic rubber

End fertilisers of high yield growth for paddy fields and oil palms

Precursor for making various vinyl acetate, metal acetate and cellulose acetate. Vinyl acetate is used for coatings and adhesives, metalacetate is used in printing, and cellulose acetate is used to make film for photography. Also used in the production of esters used as solvents in many commercial products, such as inks and paints.

Primarily used in the production of superabsorbent polymers (SAP) used in diapers, in the production of acrylic esters and in the manufacturing of plastic resins, coatings and adhesives Primarily used in the production of superabsorbent polymers (SAP) used in diapers, in the production of acrylic esters and in the manufacturing of plastic resins, coatings and adhesives Mainly used in the manufacture of resins, coatings, adhesives and plastics Mainly used in the manufactureof resins, coatings, adhesivesand plastics

Mainly used for the production of plasticisers

Mainly used as a solvent in the paint industry and for the production of PVC plasticisers Mainly used as a solvent in the paint industry and for the production of PVC plasticisers Chemical intermediate or raw material used to make different types of solvents and resin intermediates for the paint and ink industries Mainly used as an auxiliary in floatation processes in the mining industry (coal, copper, silver, gold and phosphorus, etc) and as a defoamer in the aluminium industry

KEY PRODUCTS DESCRIPTION FEEDSTOCK APPLICATIONS KEY PRODUCTS DESCRIPTION FEEDSTOCK APPLICATIONS

As a responsible corporate citizen and player in the chemical industry, PCG strives to nurture, promote and sustain a thriving Health, Safety and Environment (HSE) culture. Also, with our new vision in place, we are sparing no effort to achieve excellence in all other aspects of our operations, so as to deliver breakthrough performance benefitting all our stakeholders.

In driving innovation into the very foundations of our corporate culture, we shall continue to place the highest priority on safety. Even as we live and breathe innovation, we shall deliver our innovative products and solutions safely, whilst safeguarding and contributing to the well-being of the people and environment where we operate.

HEALTH, SAFETYAND ENVIRONMENT

Among the core components of our strong foundation is our capability-driven workforce. Our people are fundamental to our success. We remain committed to nurturing and empowering our dedicated talents in driving success.

By driving a culture of innovation, we motivate our people to build their core competencies, inspiring them to unleash their true potential to meet the needs of our loyal as well as prospective customers.

We are a company that adapts quickly and continually to the ever-changing needs of the chemical industry, using our talent for innovation to create products that help improve the needs of people around the world. As PCG employees, we are ready to meet change and challenges head-on, and we know that speed is vital to the fulfilment of our strategic goals and objectives.

We remain passionate about advancing chemical products’ output, along with supporting diversity within the region, focusing on exceptional performance and earning the trust of those we serve.

OURPEOPLE

PCG strives to excel where environmental sustainability is concerned. Our role as a responsible corporate citizen drives us to share best practices and inspire the community to protect Mother Nature. It has always been in our best interest to strengthen the environmental conservation DNA that is richly embedded withinthe culture of our organisation.

In providing products and services that fulfil customers’expectations, we commit our hearts to minimising all possible impacts that can potentially cause detriment to the environment. This is done by hosting, funding and pioneering environmental preservation initiatives that promote a more sustainable way of life.

As a responsible corporate citizen, we continue to play our role in the Corporate Social Responsibility (CSR) front with our signature environmental CSR programme, ecoCare and other CSR related initiatives involving the local community to ensure that we contribute to the well-being of the people and environment where we operate.

CONSERVINGTHE ENVIRONMENT

PETRONAS ChemicalsGroup Berhad

C O R P O R A T E P R O F I L E

PETRONAS Chemicals Group Berhad (459830-K)

Tower 1, PETRONAS Twin Towers,Kuala Lumpur City Centre,

50088 Kuala Lumpur, MalaysiaTel: 03-2051 5000 Fax: 03-2051 1501

Website: www.petronaschemicals.com