1 OCTOBER 2011

Copyright 2010 @ STRATEGIC PLANNING DEPARTMENT, PETRONAS DAGANGAN BERHAD

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1. PDB - The Corporation

2. Company Performance

3. Key strategies

4. Challenges

2

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.

3

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)

5

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

9

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

1. PDB - The Corporation

2. Company Performance

3. Key strategies

4. Challenges

11

Volume growth contributed mainly by higher sales from

Retail and Commercial businesses

• YTD June volume is above SPLY by 16.4% against SPLY.

• Growth in Q1 was mainly contributed by higher Diesel, Aviation, Fuel Oil, and LPG

sales.

Mil L

itre

sYTD Volume

3,279.2

3,815.3

3,000.0

3,250.0

3,500.0

3,750.0

4,000.0

SPLY YTD June FY2011

16.4 %

13

PDB’s Market Share by business lines – Where are we in

the industry….

• Commercial

• Lubricant

Market Leader #2 in the industry

• LPG

• Retail

Revenue increased mainly as a result of higher sales volume by 16.4%and higher average selling price by 19.6%

MOGAS, 1,918,932 , 35%

DIESEL, 1,853,149 , 34%

AVIATION, 957,193 , 18%

FUEL OIL, 221,062 , 4%

LPG, 279,890 , 5%

LUB, 95,651 , 2% OTHERS, 130,595 , 2%

Mogas, 2,095,595 ,

28%

Diesel, 2,685,209 ,

36%

Aviation, 1,462,202 ,

19%

Fuel Oil, 628,639 ,

8%

LPG, 337,334 , 4%

Lube, 112,611 , 2%

Others, 218,336 , 3%

Revenue 7,539.9

+ / -(%)

38.2

Q1 10/11(RM Mil)

5,456.5

Q1 2011(RM Mil)

Q12011

Q110/11

Profit before tax in Qtr 1, FY2011 improved by RM13.6 million as a result of higher gross profit and higher other income but offset by higher OPEX

RM’Mill

RM’Mill

250

260

270

280

290

300

QTR 1, FY2011 QTR 1, FY2010/11

290.8

277.2

Profit Before Taxation

0

50

100

150

200

250

300

QTR 1, FY2011 QTR 1, FY2010/11

280.8

226.2

34.8 30.0

OPEX Other Income

18

Shareholder’s funds increased in tandem with the Q1 profit. However, cashbalances reduced by 20.8%

Cash flow Statement (RM Mil)

30/06/2011 30/06/2011 % Incr / (Decr)

Cash (Used)/Generated from Operating

Activities

(55,477) 315,744 (117.6)

Cash Used in Investing Activities (94,073) (83,116) 13.1

Cash Used in Financing Activities 30,017 - 100.0

Net Increase in Cash & Cash Equivalents (119,533) 232,628 (151.4)

Cash & Cash Equivalents at beginning of

period

1,026,209 912,471 12.5

Cash & Cash Equivalents at end of period 906,676 1,145,099 (20.8)

SPEAKER’S NOTES

19

I l

Earnings Per Share (EPS)

FY 2005/06

FY 2006/07

FY2007/08

FY2008/09

FY2009/10

FY2010/2011

FY 2011

PDB P/E 7.99 9.53 12.01 13.57 11.96 18.85 21.83

Market PE 13.15 16.07 13.29 13.68 18.86 16.80 17.21

*Annualised based on quarter 1 financial results

21.2

50.8

64.5 66.6

75.8 75.7

87.5 84.0*

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

1. PDB - The Corporation

2. Company Performance

3. Key strategies

4. Challenges

23

• Retail Business

• Achieving market leadership

• Increasing throughput volume

• Opening new stations at strategic locations

Key Strategies

• Commercial Business

• Maintain and strengthen market leadership

through quality services

• Focus on primary target market and quality

customers

• LPG Business

• Maintain market leadership through innovative

marketing

• Improve on product network availability and

customer service

• Lube Business

• Aggressive market penetration

• Expand product range to include fighting

brand

Key Strategies

1. PDB - The Corporation

2. Company Performance

3. Achievements/Awards

4. Key strategies

5. Challenges

26

Downstream Oil Sector

Changes in Consumer

profile (age, lifestyle,

income, etc)

Rising Cost lead to

compressed MarginDevelopment of

Efficient & Innovative

Technology

Stringent Products Quality

& competitive substitution

Reduction in

Subsidy programPolicies/Regulations

T H A N K Y O U

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