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CIMB ASEAN SERIES 2012 : MALAYSIA CORPORATE DAY

5 January 2012

Pearl Room, Mandarin Oriental Hotel,

Kuala Lumpur.

PETRONAS DAGANGAN BERHAD

2. Background of the Company

3. Company Performance

4. Key Strategies & Challenges

5. Q&A

1. Opening Remarks by En Rozaini M Sani,

General Manager of Finance Division

CONTENT

Background of the Company

Corporate Profile

• 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.

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

Launching of PRIMAX 97

Introduced Syntium Moto (March 2010)

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…

Milestones

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)

6

PDB’s Core Business

PETRONAS

DAGANGAN

BERHAD

Commercial

Business

Retail

BusinessLPG

BusinessLube

Business

S A R A W A

K

S A B A HP E N I N S U L A R

M A L A Y S I A

B R U N E I

Kedah

Supply and Logistics Networks

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

10

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

Business Performance Review For YTD Sept 2011

En Ahmad Kushaini RamliSenior Manager, Strategic Planning Division

1. Malaysian Economic

2. Business Performance

3. Key Achievements & Activities

Sustained growth supported by continued strong domestic and

external demand

• According to BNM Governor Tan Sri Dr Zeti Akhtar, the growth in Q3 is expected to be better with improvements

seen in several indicators (e.g; industrial production)

• Malaysia reported an external trade surplus of RM9.6 billion in September 2011. While it grew significantly by

40.5% from the same month last year, on a month-to-month basis, it posted a decline of 12.3% from RM11 billion

due to cooling external demand.

•The Business Sentiment Index (BSI) remains encouraging, having inched up negligible 0.8 points in Q3. It is

likely that consumers are only cautiously optimistic, and even appeared somewhat restrained, as they continue to

watch the economic radar as attentively as, if not more, than before.

Source : CIRU-PETRONAS& BNM

• YTD Sept volume is above SPLY by 14.7% against SPLY.

• Growth in Q2 was mainly contributed by higher Diesel, Aviation, Fuel Oil, and LPG

sales.

Mil L

itre

sYTD Volume

6,613.2

7,585.3

6,000.0

6,250.0

6,500.0

6,750.0

7,000.0

7,250.0

7,500.0

7,750.0

SPLY YTD Sept FY2011

14.7 %

Impressive volume growth despite moderate economics performance

RETAIL BUSINESS

2,995.8

0.0

1000.0

2000.0

3000.0

4000.0

5000.0

6000.0

SPLY YTD Sept FY2011

Mil

lio

n L

iters

YTD Volume

3,232.9

7.9%

YTD Sept FY2011 volume vs SPLY was mainly due to :-

• Introduction of PRIMAX95 Xtra

• Higher Diesel sales volume mainly from Sarawak & Sabah

regions.

Strong YTD Sept FY2011 performance against SPLY

COMMERCIAL BUSINESS

2,900.0

3,597.5

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

SPLY YTD Sept FY2011

Mil

lio

n L

ite

rs

YTD Volume

24.1%

YTD Sept FY2011 volume was higher than SPLY due to

increased demand from all products.

• Higher Diesel & Fuel oil upliftment due to gas curtailment issue

• Strong demand for Jet Fuel supported by MAS/AirAsia and other airlines

• Increased asphalt demand mainly for road construction projects.

LPG BUSINESS

• Higher sales from C14kg and bulk

• Increased demand by existing customers

• New customers who had been uplifting from other players now switching to

PETRONAS

0.0

200.0

400.0

600.0

800.0

SPLY YTD Sept FY2011

Mil

lio

n L

iters

663.5

706.0

YTD Volume

Higher YTD Sept FY2011 volume than SPLY due to higher demand

household cylinder and bulk.

6.4%

LUBRICANTS BUSINESS

26.9 25.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

SPLY YTD Sept FY2011

Mil

lio

n L

iters

YTD Volume

Decline performance than SPLY mainly due to customer accounts

restructuring

Decreased in YTD Sept FY2011 volume mainly Volume was above SPLY mainly due to customer

accounts restructuring between Direct & LDSB channel starting FY2011.

-4.0%

Positive economic growth outlook for the future.

• Given fragile outlook of the US and Eurozone and with total exports contributing nearly 100% of the country’s GDP. Malaysia is vulnerable to the recent global turmoil.

• Meanwhile, the implementation of ETP should continue to provide support for growth. PM Najib’srecently announced a list of 13 new EPPs, which will bring total committed investment to RM 177.1 billion.

• Palaysia has performed well in wooing FDIs in H1 2011, having attracted RM21 billion vis-à-vis RM10 billion in same period last year. The higher inflow mirrored growing investor confidence, stemming from the government initiatives to stimulate economic growth.

Source : CIRU-PETRONAS & BNM

Achievement

On 27 Sept 2011, PDB was awarded for 2nd Runner-up for The Best

Shareholders Return by Malaysian Business at the prestigious Prince Hotel &

Residence, Kuala Lumpur.

On 28 Sept 2011, Lumut Fuel Terminal has delivered its 1st ONE BILLION

LITER without LTI

Activities

28 Oct 2011, Signing Ceremony for Lubricant Supply Contract between PDB

and Boon Siew Honda.

28 Oct 2011, Grand Opening of our 1st Car Spa Outlet at PSS Jalan Masai.

On 7 Oct 2011, PETRONAS Dagangan Berhad has invited the Formula One

driver Nico Rosberg, to surprise customers at its PETRONAS Mutiara

Damansara and PETRONAS TTDI stations

On 1 Oct 2011, PDB Participated in iCapital.biz Bhd's Investor Day at the

Kuala Lumpur Convention Centre

Sept 2011 PETRONAS Dagangan Berhad (PDB) kick-started the next phase

of the PETRONAS PRIMAX 95 Xtra campaign with the PETRONAS XTRA

Challenge targeting 300 customers nationwide over the three-month period.

Key achievement and activities from Sept – Nov FY2011

Thank you

Financial Performance For YTD Sept 2011

En Rozaini M SaniGeneral Manager, Finance Services Division

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Key Events / Highlights

• The global economy continued to face a challenging environment due to uncertainties infinancial markets, unfavourable fiscal conditions and weaknesses in labour markets in theadvanced economies .

• The Malaysian economy registered a higher growth of 5.8% in Quarter 3, 2011 (2Q 11: 4.3%), due to stronger domestic demand.

• Inflation rate rose to 3.4% on an annual basis in the third quarter (2Q 11: 3.3%).

• PDB achieved higher average selling prices (18.8%) and sales volume (14.7%) for year to date 30 September 2011 as compared to same period last year.

• PDB has announced another interim dividend of 15 sen per ordinary shares less 25% taxamounting to RM111,763,575 in respect of quarter ended 30 September 2011, bringing thetotal interim dividend announced to date to 30 sen per ordinary shares less tax 25%.

Key Financial Highlights

• YTD 30/09/2011 vs YTD 30/09/2010 30/06/2010

COMPREHENSIVE INCOME

Revenue increased by 35.5% to RM14,844.9 million from RM10,952.8 million

Profit Before Tax increased by 29.7% toRM591.2 million from RM 561.5 million

• As at 30/09/2011 vs As at 31/03/2011

FINANCIAL POSITION

Shareholders funds decreased by 2.6% to RM4,668.9 million from RM4,794.9 million

Cash balances decreased to RM664.5 million compared to RM1,026.2 million

Key RatiosAs at

31/03/2011As at

30/09/2011

Earnings Per Share (sen) 87.5 87.1*

Return on Revenue (%) 5.2 3.9

Return on Equity (%) 19.1 18.1*

Return on Total Assets (%) 14.3 13.4*

* Annualised based on year to date figures as at 30 September 2011

Revenue increased mainly as a result of higher average selling price by 18.0% and higher sales volume by 13.1%________________________________________________

Revenue 7,304.9

+ / -(%)

32.9

QE 30/09/10(RM Mil)

5,496.3

QE 30/09/11(RM Mil)

QE 30/09/10

QE 30/09/11

Gross Profit increased by 15.6% mainly contributed by the increased in average margin for Mogas by 19.6% and Bitumen by 98.7%

Gross Profit 564.3 488.315.6

QE 30/09/11(RM Mil)

QE 30/09/10(RM Mil)

+ / -(%)

QE 30/09/10

QE 30/09/11

Mogas 211,354 43%

Diesel 134,812 28%

Aviation 49,602 10%

Fuel Oil 5,249 1%

LPG 49,677 10%

Lube 25,406 5%

Others 12,193 3%

Mogas 266,094

47%Diesel 138,234

25%

Aviation 61,679 11%

Fuel Oil 608 0%

LPG 36,011 6%

Lube 27,831 5%

Others 33,838 6%

As a result of higher gross profit, PDB managed to record higher Profit Before Tax despite higher OPEX

240

250

260

270

280

290

300

310

Qtr 2, FY2011 Qtr 2, FY10/11

300.4

284.3

RM Mill'

Profit Before Taxation

0

50

100

150

200

250

300

350

Qtr 2, FY2011 Qtr 2, FY10/11

301.4

249.4

37.3 45.3

RM Mill' OPEX Other Income

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Shareholder’s funds and cash balance remain strong.

RM Million RM Million

Shareholder’s Funds

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

31/03/2011 30/09/2011

4,794.9

4,668.9

0

200

400

600

800

1000

1200

31/03/2011 30/09/2011

1,026.5

664.5

Cash Balance

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Decrease in cash balance was mainly due to higheroutstanding subsidy receivables

RM’Mill

267

140

210

269

86

479

299

190

147

192255271

875

653

751

826

666

1,138

836

880

678

366

538

1,015

863

1,020912

1,145

1,437

1,026 1,026

870

621

0

150

300

450

600

750

900

1,050

1,200

1,350

1,500

31.03.09 30.06.09 30.09.09 31.12.09 31.03.10 30.06.10 30.09.10 31.12.10 31.03.11 30.06.11 30.09.11

Cash & Bank Balances

Cash and bank Deposits Total

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KLCI Index RM per Share

PDB’s share continue to outperform KLCI

performance.

870

885

966

1,164

1,173

1,249 1,319 1,346

1,422 1485.23

1519.94

1491.25

1371.55

1518.91

6.557.20 7.40

7.908.35

8.90 8.708.95 8.85

9.2710.17

16.30

11.30

12.08

17.64

5

6

7

8

9

10

11

12

13

14

15

16

17

18

800

900

1000

1100

1200

1300

1400

1500

1600

1700

KLCI PETDAG

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Earnings Per Share (EPS)

FY

2005/06

FY

2006/07

FY

2007/08

FY

2008/09

FY

2009/10

FY

2010/2011FY 2011

PDB P/E 7.99 9.53 12.01 13.57 11.96 18.85 18.71

Market PE 13.15 16.07 13.29 13.68 18.86 16.80 15.83

*Annualised based on quarter 2 financial results

21.2

50.8

64.5 66.6

75.8 75.7

87.5 87.1*

10

20

30

40

50

60

70

80

90

100

FY2004/05 FY2005/06 FY2006/07 FY2007/08 FY2008/09 FY2009/10 FY2010/11 FY 2011

Earning Per Share

Earning Per Share

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PDB’s dividend yield remain higher than market dividend yield

6.70 6.50

6.13

3.73

4.93 4.88

5.63 5.70

5.00

3.90 3.99

4.64

3.38 3.36

4.775.02

2.83

3.45

3.90

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

PDB Dividend Yield - With Special Dividend

PDB Dividend Yield - Without Special Dividend

Market Dividend Yield

2.80

4.82

6.65 6.50

4.283.56

4.183.65

5.135.60

7.007.95

3.98

4.02

4.06

6.15

8.00

9.05

16.50 16.30

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Mar 94

Mar 95

Mar 96

Mar 97

Mar 98

Mar 99

Mar 00

Mar 01

Mar 02

Mar 03

Mar 04

23 Feb 05

24 Feb 05

Mar 05

Mar 06

Mar 07

Mar 08

Mar 09

Mar 10

Mar 11

Sept 11

Share Price (RM')

CAGR (with Dividend Reinvestment) – 19.12%Share Price (RM)

On 24.02.05 Bonus Issue at a ratio 1:1

FY93/94 FY94/95 FY95/96 FY96/97 FY97/98 FY98/99 FY99/00 FY00/01 FY01/02 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY2011

No of Shares

(with Dividend

Reinvestment)

1,012 1,050 1,067 1,097 1,134 1,1731 1,231 1,300 1,350 2,812 2,887 2,990 3,096 3,225 3,363 3,530 3,594 3,594 3,716

18 years 10 years 5 years 1.5 year 9 months

TSR (%) 19.12 26.14 39.14 53.19 57.03

PDB Total Shareholder Return as at 30 October 2011

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PDB has announced second interim dividend for FY2011 on 23rd November 2011

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

Dividend Net

(RM) 107,293 143,057 216,573 332,907 335,291 447,054 745,090

Net Dividend

excluding special

dividend/ PAT (%)

(Payout) 53% 29% 34% 51% 59% 45% 55%

Sen per share

-

10

20

30

40

50

60

70

80

90

100

5 5 10 12 12 1530 30

10

10 1520

33 33 30

3515

25Final - Special

Final

Interim - Special

Interim