3M/Q1 2019 FINANCIAL RESULTS

SIPCHEM 3M/Q1 2019 EARNINGS CALL

Date: Tuesday, April 30, 2019

Time: 03:45 PM (Saudi)

04:45 PM (Dubai)

01:45 PM (London)

08:45 PM (New York)

SIPCHEM Q1 2019 EARNINGS CALL 2

DISCLAIMER

Disclaimer and important information in relation to this presentation

This presentation has been prepared solely for use at the investor presentation concerning the financial results of Saudi International Petrochemical Company(Sipchem). By attending the investor presentation, or by reading the presentation slides, you agree to be bound by the following limitations.This presentation has been prepared by Sipchem solely for use by you at the investor presentation, held in connection with Sipchem’s financial results. Theinformation contained in this presentation does not purport to be comprehensive and has not been independently verified. No representation or warranty,express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinionscontained in this presentation. The information set out in this presentation may be subject to updating, revision, verification and amendment and suchinformation may change materially. Sipchem is under no obligation to update or keep current the information contained in this presentation and any opinionsexpressed in it is subject to change without notice. None of Sipchem or any of its affiliates, advisers or representatives: (i) makes any representation or warranty,express or implied, as to the truth, fairness, accuracy or completeness of the information in this presentation (or whether any information has been omitted fromthis presentation); or (ii) shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this presentation or itscontents, or otherwise arising in connection with this presentation.

The information in this presentation is given in confidence and may not be reproduced or redistributed to any other persons.This presentation does not constitute or form part of any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchaseor subscribe for, any securities of Sipchem or any of its subsidiaries or affiliates, nor shall it or any part of it nor the fact of its distribution form the basis of, or berelied on in connection with, any contract or investment decision. The information and opinions contained in this presentation are provided as at the date of thepresentation and are subject to change.

Certain statements in this presentation constitute "forward-looking statements". These statements include records of intentions, beliefs or expectations withrespect to, amongst other things, operations, financial conditions, liquidity, prospects, growth, strategies and the dividend policy of Sipchem, its subsidiaries,affiliates and the industries in which they operate. These statements, which contain the words "anticipate", "believe", "intend", "estimate", "expect" and words ofsimilar meaning, reflect Sipchem’s beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. These risksand uncertainties include, amongst other factors, commodity price volatility and risks relating to technology, shared utilities, competition and price, financing,litigation, general operations, environment, feedstock supply and price, project interface and foreign exchange, as well as different market conditions and theprospects for growth anticipated by the management of Sipchem. These and other factors could adversely affect the outcome and financial effects of the plansand events described in this presentation. As a result, you are cautioned not to place undue reliance on such forward-looking statements. Sipchem disclaims anyobligation to update its view of such risks and uncertainties or to publicly announce the result of any revisions to the forward-looking statements made in thispresentation, except where it would be required to do so under applicable law.

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12M/ANNUAL 2018 RESULT

Highlights

Operations

Financials

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Plant Performance

CHEMICALS BUSINESS

Chemical Product Performance

• Methanol• Butanediol,

Tetrahydrofuran• Maleic Anhydride• Carbon Monoxide• Gamma Butyrolactone• Acetic Acid• Acetic Anhydride• Vinyl Acetate

Monomer and Ethyl / Butyl Acetate

Sales ('000 MT)Production ('000 MT)

538637

Q1 2019Q1 2018

+18%

546595

Q1 2018 Q1 2019

+9%

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Plant Performance

• LDPE• EVA• PBT• Cross linkable LDPE• Semi conductive LDPE

Sales ('000 MT)Production ('000 MT)

POLYMERS BUSINESS

Polymers Product Performance

78 73

Q1 2019Q1 2018

-6%

75 76

Q1 2018 Q1 2019

+1%

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SAR Million 20152016IFRS

2017IFRS

2018IFRS

Q1 2019 IFRS

Capex/Depreciation (x) 1.0 0.7 1.0 1.1 0.8

Avg days on Stream-YTD % 88% 90% 85% 87% 88%

Avg days on Stream- Q1 % 84% 90% 90% 72% 88%

Sales/employee 3.0 3.4 4.6 4.9 4.4

Profitability and Performance

Sustainability FocusCapabilities FocusGrowth Focus

Efficiency and Effectiveness

Capital Structure, Investment / Financial Risk

Liquidity and Stability

SAR Million 20152016IFRS

2017IFRS

2018IFRS

Q1 2019

IFRS

Sales 3,515 3,515 4,460 5,036 1,122

EBITDA 1,234 1,165 1,648 1,982 447

EBITDA Margin 35.1% 33.2% 36.9% 39.4% 39.9%

SAR Million 20152016IFRS

2017IFRS

2018IFRS

Q1 2019

IFRS

Current Ratio (x) 2.01 1.58 1.96 1.58 1.66

Quick Ratio (x) 1.64 1.22 1.60 1.16 1.25

Cash from Operations 927 909 1,694 1,661 379

SAR Million 20152016IFRS

2017IFRS

2018IFRS

Q1 2019 IFRS

Capital Expenditure 711 479 610 859 141

ROCE (%) 7.5% 3.1% 6.9% 8.4% 7.8%

Dividend Cover (x) 1.25 - - 1.00 0.65

Key Message: Improved market conditions, netback contribution and cost advantage position

SIPCHEM HIGHLIGHTS AT A GLANCE….

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Q1 2018

POLYMERS

REVENUES

Key Message: Netback contribution and low cost advantage lead the way…

SEGMENTATION OVERVIEW

Chemical: “IMC, IDC, IGC, IAC, IVC, IUC, SCC EA” Polymers: “IPC, GACI Other: “SMC & Foreign subsidiaries, SSPC”

EBITDA MARGIN

71%

22%

6%

60%31%

9%

Chemical: “IMC, IDC, IGC, IAC, IVC, IUC, SCC EA” Polymers: “IPC, GACI Other: “SMC & Foreign subsidiaries, SSPC”

CHEMICAL

OTHER

POLYMERS

CHEMICAL

OTHER

Q1 2019

68%

24%

8%

63%

25%

13%

78%

19%

3%

66%

25%

9%

Q1 2018 Q1 2019

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3M/Quarterly 2019 financial results

FINANCIALS OVERVIEW

Earning Per Share (EPS)Net Profit

151

115

Q1 2018 Q1 2019

-24%

0.41

Q1 2018

0.31

Q1 2019

Sales/Revenue

1,171 1,122

Q1 2018 Q1 2019

-4%

Overview:

• Net Profit attributable to shareholders of the company decreased during current quarter compared to the same quarter of the previous year due to lower Sales Revenue as a result of lower selling prices for most of the company’s products, partially offset by increased sales volumes in the quarter.

• Profit was impacted by increase in other income / loss for expenses for proposed merger, including merger integration planning.• The increase in finance cost was mostly driven by increase in effective interest rate cost (EIR) under Sipchem’s and Sipchem’s

affiliates loan facilities, which at floating rate cost linked to SAIBOR have been impacted by increasing interest rates.

All Figures are in (Millions) Saudi Arabia, Riyals

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31 March 2019COMPARED TO PREVIOUS PERIODS

Balance Sheet

(Million, SAR) 3/31/2019 12/31/2018 Variance % Change

Current Assets (excl. Inventory) 2,538 2,225 313 14%

Inventory 836 807 29 4%

Fixed Assets 11,299 11,275 24 0%

Other Assets 1,046 1,073 -27 -3%

Total Assets 15,719 15,380 339 2%

Current Liabilities 2,030 1,925 105 5%

Non-Current Liabilities 6,657 6,330 327 5%

Shareholders Equity 5,797 5,919 -122 -2%

Minority Interests 1,235 1,206 29 2%

Total Liabilities & Shareholder Equity 15,719 15,380 339 2%

Current Ratio 1.66 1.58 0.09 6%

Quick Ratio 1.25 1.16 0.09 8%

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Cash flow

Q1, 2019 VS Q1,2018 CASH FLOW

(Million, SAR) 3/31/2019 3/31/2018 Variance % Change

Income before Zakat/Tax & Non-controlling Interests 173 259 -86 -33%

Depreciation 174 202 -28 -14%

Working Capital / other 32 62 -30 -48%

Net cash provided by operating activities 379 523 -144 -28%

Purchase of PPE -142 -179 37 -21%

Others Investing activities 4 4 0 0%

Net cash used in investing activities -138 -175 37 -21%

Changes in short term loans 0 0 0 #DIV/0!

Changes in long term loans 331 203 128 63%

Dividends paid -238 0 -238 #DIV/0!

Non controlling interest / other -51 -82 31 -38%

Net cash from financing activities 42 121 -79 -65%

Changes in cash & cash equivalents 283 469 -186 -40%

Cash & cash equivalents at 1 Jan 1,014 1,723 -709 -41%

Exchange rate Changes Impact 1 2 -1 -50%

Cash & cash equivalents at end of period 1,298 2,194 -896 -41%

SIPCHEM Q1 2019 EARNINGS CALL 12

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For further enquiries, please contact:

Sipchem Investor Relations Team

E-Mail: sipchemir@sipchem.com

Office: +966 13 801 9200

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Q&A

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