1. Company Overview 2. Key Investment Highlights 3. Strategic - PowerPoint PPT Presentation

Indonesia’s LEADING and PREFERRED Petrochemical Company Investor Update November 2016

Table of Contents 1. Company Overview 2. Key Investment Highlights 3. Strategic Growth 4. Financial Highlights 5. Conclusion 2

1. Company Overview 3

P T Chandra Asri Petrochemical Tbk (“CAP”) at a glance  Largest integrated Olefins and Polyolefins producer in Indonesia  Owns the only Naphtha Cracker, Styrene Monomer and Butadiene plants in Indonesia  Sole producer of Ethylene (860KTA) and the largest Polypropylene producer (480KTA) in Indonesia. One of two producers of Propylene (470KTA) and Polyethylene (336KTA) in Indonesia  Uniquely positioned to capitalize on strong growth CAP’s main integrated manufacturing complex prospects of Indonesia’s petrochemical industry and rising consumer demand  Backed by strong principal shareholders Barito Pacific Group (1) (65.2 1%) and Siam Cement Group (“SCG”) (30.57%) as of 30 th Sept 2016. Polypropylene plant Ethylene plant  Financial Summary: FY2015 9-mth 2016  Net Revenue US$1,378m US$1,400m  Adjusted EBITDA US$155m US$370m  EBITDA margin 11% 26% (1) Includes CAP shares held by Marigold Resources Pte Ltd and Magna Resources Corp Pte. Ltd. Styrene monomer plant Butadiene plant 4

Vision and Business Strategy The Leading and Preferred Petrochemical Company in Indonesia Increase capacity and build on leading market position 1 Expand product offerings and further optimize integration along the petrochemical 2 value chain Develop feedstock advantage to improve cost competitiveness 3 Develop and nurture human capital 4 Continue to leverage the Company’s unique infrastructure and customer service to 5 maintain premium relationship Maintain and further improve best-in-class operating standards, cost efficiency, and 6 safety, health, and environment 5

23 years track record of successful growth 2004 2011 2012 2010  Product expansion through  •  Issued Refinanced bond with Merger of CAP and TPI effective selling of Mixed C 4 lower cost US$220m inaugural 5-year from 1 Jan 2011 7-year term loan, US$230m Bond  Completed de-bottlenecking in substantially reducing Apr 2011 to raise capacity of interest expense 2007 polypropylene plant to 480ktpa CAP • Added an extra furnace,  SCG acquired 30% of CAP from increasing ethylene Barito Pacific and Temasek 1995 production by 80ktpa and 2014  Commercial production extended pipeline network by • Commenced Cracker begins at CAP with 25 km expansion project initial cracker capacity • Acquired 100% of PT 600KTPA to 860 KTPA. of 520ktpa Styrindo Mono Indonesia (“SMI”) CAP 2011 1992 1993 1995 2004 2007 2009 2010 2012 2013 2014 2015 2013 2015 1995 2009  • Completed • Formed JV with Michelin  Completed Cracker Increased 1992 Train 3, raising (SRI) in June 2013 for capacity of  expansion project in Dec Started commercial production 2011 capacity of construction of SBR Plant PP plant to 2015 to raise capacity to TPI of polypropylene comprising of  Commenced polypropylene 480KT 860KTPA. 2 trains with annual capacity of construction of • Commenced operation of plant to 160ktpa Indonesia’s first  Appointed Toyo Eng. Butadiene plant in Sept 2013 360ktpa butadiene plant in Corp for construction of • Secured funding for Cracker Aug 2011 SBR Plant. expansion:  Secured  Refinanced US$150m US$150m term • US$128m rights issue in loan with lower cost 1993 loan to fund the November 2013 US$94.98m 7-year term  Increased capacity of PP plant to butadiene project • loan. US$265m 7-yrs term loan 240ktpa in Nov 2011 in December 2013 6

Strong success of both vertical and horizontal expansion CAGR 7%  100  480  340  95  16  120  40  60  150  50  260  80 Source: Company 7

Strong and Diverse Product Portfolio ...fundamental to production of many diverse consumer and industrial products 2016 YTDSep Revenue 2015 Revenue US$1,378m US$1,400m Polyolefins Styrene Monomer Butadiene Olefins Ethylene Propylene Polyethylene Pygas Mixed C 4 Polypropylene Source: Company Information 8

2. Key Investment Highlights 9

Key Investment Highlights 1 Attractive industry dynamics supporting strong spreads 2 7 Favorable domestic Strong management team demand growth and with substantial industry macroeconomic outlook experience 6 3 Strong commitment and Leading petrochemical synergies from producer in Indonesia with Shareholders diverse product portfolio 4 5 Stability and security of Strategically located to feedstock customers 10 10

Attractive industry fundamentals: Petrochemical industry 1 is in long term cyclical phase Petrochemical industry profitability to continue on path of sustainable recovery post 2012 as a result of improving demand and lower capacity addition Ethylene spreads over Naphtha 700 90% Gap over naphtha (Dollars per ton) 600 Average: 532 88% Average: 478 500 % Utilisation rates 86% 400 Average: 306 300 84% 200 82% 100 0 80% 2009 2010 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F Ethylene Delta Over Net Raw Material Cost Global utilisation rates Note: - 2015 is based on actual on year to date basis (Jan-Nov) - Forecast price is based on Brent Crude at $30 (2016-2020) and $50 (2021-2022) per barrel Source: Nexant (Feb 2016) 11

Ethylene world supply growth Based on existing construction 3-4% Incremental supply growth (MT): 2.8 4.4 4.6 4.7 4.7 3.5 10.5 6.9 2.0 5.0 5.0 6-7 6-7 3.4 5-6 6-7 6-7 6-7 12

Ethylene world capacity Naptha + conventional gas = 91% of capacity Ethylene world capacity New capacity by region 191MT in 2021 (2017-2021) Middle Europe East South East Asia Conventional North Gas America Naphtha North Asia CTO + MTO - Near Mongolia (coal reserves) with water scarcity and others - 5x greater water usage than conventional - 2.5x higher investment cost than conventional New shale Deleted from China’s investment tax promotion - gas cracker 8 crackers = 5% of world’s capacity - - 6 years required from planning to start-up 13

High Operating rates 1 Continue to achieve high capacity utilization rates mainly due to robust demand from domestic market in Indonesia, a net petrochemical importing country, and focusing on energy yield and efficiency improvements. Utilisation rates of CAP Ethylene Polyethylene, Polypropylene, Styrene Monomer, Butadiene 85 days shutdown for TAM & Tie-ins (a) Consistently achieved high utilization rate of above 90%.  CAP's utilisation rates of the downstream products have  Conducted 85 days shutdown for Turn Around  remained strong with average of more than 90%. Maintenance (TAM) and Cracker Expansion Tie-ins from  Utilisation rates in 2014-2015 for SM and BD impacted by Sept to Dec 2015. market conditions and C4 availability respectively. Next TAM scheduled for 2020.  Note: (a) Represents 3 months operation from Sep-Dec Source: Company information 14

Strong demand growth expected in Indonesia 2 for petrochemical products Petrochemical products are fundamental to production of a wide variety of consumer and industrial products, such as packaging, containers, automotive and construction materials Total Demand Growth End Markets (2016E – 2022E CAGR)  Plastic films  Containers Polyethylene  Bottles  Plastic bags  Packaging  Films and sheets  Polypropylene Fibers and filaments  Toys  Automotive parts  Drinks cups  Food containers Styrene Monomer  Car interiors  Helmet padding  Vehicle tires Butadiene  Synthetic rubber  Gloves and footwear Source: Nexant (Feb 2016) 15

Uniquely positioned to benefit from Indonesia’s strong 2 macroeconomic growth and consumption trends Polyolefins Consumption per Capita (1),(2) GDP growth CAGR (2014-2018E) 10% 7.4% 7.4% 5.1% 4.4% 5% 2.2% 0.8% 0% China India Indonesia South-East US WE Asia FDI Investment in Indonesia (2012-2015) (US$bn ) Domestic trends Rising Population Quality of Life Urbanization Manufacturing Source: Nexant (Feb 2016), BKPM Notes: (1)Size of bubble indicates population size of each country / region in 2015 (2)Polyolefins include HDPE, LLDPE, LDPE and PP 16

Indonesia’s leading petrochemical producer 3 CAP has the most diverse product range and a dominant producer with approximately 4 8% market share of Indonesia’s olefins and polymers production capacity Capacities of Petrochemical Producers in Indonesia (Annual) – FY2015 Lotte Chemical Asahimas Nippon Petro-Oxo Polychem 1 Products (KT) Pertamina Polytama TPPI TOTAL Titan Sulfindo Chemical Shokubai Nusantara Indonesia Ethylene 860 860 LLDPE 200 200 400 HDPE 136 250 386 Polypropylene 480 45 386 911 Styrene Monomer 340 340 Vinyl Chloride Monomer 712 130 530 Ethylene Oxide 216 216 Propylene 470 430 900 Acrylic Acid 140 140 Butanol 20 20 Ethylhexanol 100 100 Py-gas 400 400 Crude C4 315 315 Benzene 400 400 ParaXylene 550 550 Butadiene 100 100 Total Capacity of Producer 3,301 450 475 386 712 130 140 120 216 950 6,880 Source: Company 17