Title

Corporate Presentation

Maybank KimEng Invest ASEAN Singapore 2018

27 March 2018

Title

This presentation slides may contain forward-looking statements that involve risks and uncertainties. These statements reflect management’s current expectations, beliefs, hopes, intentions or strategies regarding the future and assumptions in the light of currently available information. Such forward-looking statements are not guarantees of future performance or events. Accordingly, actual performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, competitive factors and political factors. You are cautioned not to place undue reliance on these forward-looking statements, which are based on current view of management on future events.

Cautionary note on forward-looking statements

Title

Corporate Overview

Title

Listed on SGX since 2001– a constituent stock of the MSCI

Singapore Small Cap Index, FTSE ST China Index and

FTSE ST Small Cap Index

Key supplier of imported jet fuel to the

PRC Civil Aviation industry

Largest purchaser & trader of physical jet fuel

in Asia Pacific

2nd largest jet fuel supplier at

Los Angeles International Airport

3rd licensed refueller at Hong Kong International Airport

Supplies to 48 international airports outside mainland China

Revenue in FY2017 : US$16.3 billion

Revenue in FY2016 : US$11.7 billion

PBT in FY2017 : US$92.2 million

PBT in FY2016 : US$91.9 million

PATMI in FY2017 : US$85.3 million

PATMI in FY2016 : US$88.9 million

Dividends Payout for FY2017: S$0.045 per share,

first and final (one-tier, tax exempt)

Singapore Headquarter

Subsidiaries

Associated Companies

CAO - A Forbes Global 2000 Company, 2017

- Ranked 32nd Largest Oil & Gas Company, 2018 Sino-Global Energy magazine

4

Expanding Global Presence –

A Diversified and International Growth Platform

Title

Oil-Related Assets Trading of

Other Oil Products

Jet Fuel

Supply & Trading

CAO

China

International

Gas Oil

Fuel Oil

Aviation Gas

Storage Tanks & Jetties

Pipelines

Airport Refuelling Facilities

5

Aviation Marketing Crude Oil

Our Businesses

Title

Strategy: to leverage on trading expertise to expand revenue

streams and reduce reliance on jet fuel

6

Gasoil

Fuel Oil

Aviation Gas

Established in 2010

Built effective relationships with oil majors, large trading houses

and reliable end users worldwide

Reliable supplier of bunker fuel in Singapore and Middle East

Established in 2014

An avgas importer to China; and active player in Asia Pacific and Middle

East markets

Secured European refinery’s exclusive distribution rights in 14 Asia

Pacific countries

Established in 2012

Successfully supplied gasoil to Southeast Asia and North Asia regions

To expand presence in Asia Pacific region by securing more

supply contracts

Crude Oil

Established in 2016

Leveraged on the Group’s integrated value chain and well positioned

collaborations with regional counterparties and teapot refineries for

supply and trading activities

Expanding Revenue Stream

Title

Large Central SOE directly under SASAC

Fortune Global 500 company (ranked 439 in 2017)

Extensive nationwide sales network, logistics and distribution system

Owns jet fuel supply facilities at over 210 airports across China

Provides refuelling services to over 200 airline companies

7

Strong Shareholder Support

CNAF

Jet Fuel Refuelling

Trading of Other Oil Products

Logistics International

Business

(CNAF) – 51%

Title

BP Investments Asia Limited – 20%

CAO’s strategic business partner

Assists CAO in enhancing its trading and risk management system

Business cooperation with BP enables access to new markets

8

Strong Shareholder Support

Title

June 2016

9

Entrenched Positioning in Aviation Fuel

Title

16.5 20.4 20.2 32.6

37.3

2013 2014 2015 2016 2017

Total Supply & Trading Volume

million tonnes

Key supplier of imported jet fuel into

China

Provides approximately 30% - 40%

of China’s total jet fuel demand on a

cost plus basis

Supplies mainly to key international

airports in China and other airports

in fast-growing Chinese cities

(Shenzhen, Chengdu, Qingdao etc.)

Strategic alliances with major

Chinese airlines to supply jet fuel

outside China

10

Jet Fuel Supply – Stable Income Generator

Title

Strong Balance Sheet, Strong cash-flows, Strengthened credit profile

Robust risk management and corporate governance framework

Global supply and trading network spanning Asia Pacific, North America and Europe

International revenue base; diversified product base

Integrated business model

11

Optimisation and Trading Enhances Profitability

Title

Structure

Measures

Group Wide Risk Awareness Culture

Management/Company Risk Meeting

Audit Committee Risk Management

Committee

Board of Directors

Heads of Department

Head of Risk Management

Heads of Department

Internal Audit (outsourced)

Risk Management Dept

Front Office Back Office

Remuneration Committee Nominating Committee

Pre-deal Checklists

Evaluation of New Business Risks and/or New Investment Risks

Credit Assessments

Product Limits

Traders’ Guidelines

Periodic Stress Testing

Regular Reporting etc.

12

Effective Risk Control System

Title

CAO Presence

Associated Companies

13

ASIA NORTH

AMERICA EUROPE ASIA

AUSTRALIA

ME

EUROPE

NAFCO

CAOHK

CAOE

CAO

CAO’s Transformation :

A Global Supply & Trading Network

Title

3.2 3.5

3.8 4.1

4.4

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2013 2014 2015 2016 2017

SPIA Refuelling Volumes 33% stake in Shanghai Pudong

International Airport Aviation Fuel

Supply Company (SPIA)

Exclusive jet fuel supplier to

Shanghai Pudong International

Airport

Owns all refuelling facilities at

Pudong Airport

Other SPIA shareholders:

Shanghai International Airport Co

Ltd (40%) and Sinopec Shanghai

Gaoqiao Petrochemical Co., Ltd

(27%)

14

Million tonnes

Oil-related Assets – SPIA

Title

2.6 2.5

2.8

3.1

2.8

0

0.4

0.8

1.2

1.6

2

2.4

2.8

3.2

3.6

2013 2014 2015 2016 2017

TSN-PEKCL Pipeline Volumes 49% stake in China National

Aviation Fuel TSN-PEK Pipeline

Transportation Corporation Ltd

(TSN-PEKCL)

CNAF Logistics holds remaining

51% stake

Key asset is a 185km long pipeline

transporting majority of jet fuel

requirements of Beijing Capital

International Airport and Tianjin

Binhai International Airport

15

Million tonnes

Oil-related Assets – TSN-PEKCL

Title

39% stake in China Aviation Oil

Xin Yuan Petrochemicals Co. Ltd

Remaining stakes held by

Shenzhen Juzhengyuan

Petrochemical Co Ltd (60%) and

CNAF (1%)

Engaged in the storage and

trading of jet fuel and other oil

products

Owns 75,000m3 storage tank

16

Oil-related Assets – Xin Yuan

Title

26% stake in Oilhub Korea

Yeosu Co Ltd (OKYC)

OKYC operates the largest

commercial oil storage terminal

in Korea

CAO is second largest

shareholder after Korea

National Oil Corporation (29%)

Korea is a main source of jet

fuel for CAO

OKYC’s Oil StorageTerminal in Yeosu, Korea

Storage

Capacity

1,300,000m3

Shipping

Time

1.88 days to Tianjin, China

1.21 days to Shanghai, China

Terminal

Facilities

4 berths with draft of 17.7 metres

Capacities ranging between 10,000 to

200,000 dwt

Able to access KNOC owned jetty

with 325,000 dwt capacity

Others Able to support trading activities to

Europe, west coast of United States

and Southeast Asia

17

Oil-related Assets - OKYC

Title

39% stake in CNAF Hong Kong

Refuelling Limited (CNAF HKR)

Remaining stakes held by Shenzhen

Cheng Yuan Aviation Oil Company

(37%), China United Petroleum

(Holding) Company Limited (14%)

and Cheer Luck Investment Limited

(10%)

Provide into-plane refuelling services

at Hong Kong International Airport

Operations commenced in August

2015

18

Oil-related Assets – CNAF HKR

Title

FY2017 Financial Results

FY2017 Highlights

The Group remained on track to deliver record volumes and a creditable financial performance for

FY2017, notwithstanding persisting macro-economic and geopolitical risks, coupled with falling global oil

inventories which led to the rise of oil prices and caused global oil markets to slip into backwardation in 2H

2017.

Total supply and trading volumes for middle distillates and other oil products increased 14.6% to hit a new

high of 37.3 million tonnes in FY2017 on the back of CAO’s successful globalisation strategy:

Revenue jumped 39.0% year-on-year to US$16.3 billion, backed by higher supply and trading volumes

and higher oil prices;

Gross Profit decreased 12.1% to US$38.7 million, attributable to lower gains from trading and

optimisation activities as markets reclined to backwardation in 2H 2017, further exacerbated by increase

in supply and operational costs incurred due to various supply disruptions caused by weather and

refineries outages in 3Q 2017;

Net Profit decreased 4.0% to US$85.3 million mainly due to higher income tax expenses.

Share of Profits from associates increased 7.8% to US$71.5 million (FY2016:US$66.4 million) due mainly to:

Share of profits from SPIA rose 5.8% to US$64.2 million in FY2017 (FY2016: US$60.6 million), primarily

due to higher refuelling volumes, resulting in higher operating profit;

Share of profits from OKYC increased 19.5% to US$5.0 million (FY2016: US$4.1 million), attributable to

higher operating profit from its tank storage leasing activities.

20

15,571.9 17,061.0

8,987.5

11,703.2

16,267.6

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2013 2014 2015 2016 2017

Revenue rose 39.0% to US$16.3 billion in FY2017 on the back of higher oil prices and record

supply and trading volumes, underpinned by sustained growth momentum of the Group’s

diversified transportation fuels portfolio.

Jet fuel prices averaged US$66.07 per barrel for FY2017 versus US$53.85 per barrel for

FY2016.

21

US$ millions

21

Revenue

Strong Revenue Growth

16.5

20.4 20.2

32.6

37.3

0

5

10

15

20

25

30

35

40

2013 2014 2015 2016 2017

Total supply and trading volumes reached new high of 37.3 million tonnes for FY2017,

supported by:

healthy growth in core jet fuel supply and trading business, backed by a growing

diversified customer base across key aviation markets;

sustained momentum across other oil products segment with 25.2% jump to 17.5 million

tonnes in supply and trading volume, backed by increased supply and trading activities

for fuel oil.

Globalisation & Diversification Drive Record

Supply & Trading Volumes

22

million tonnes

22

Total Volume

12,456.0 13,507.6

7,009.5

7,754.1

10,233.2

2,233.32,778.8

-4,000

1,000

6,000

11,000

16,000

2013 2014 2015 2016 2017 4Q2016 4Q2017

Core jet fuel supply and trading volume increased 7.8% year-on-year to 16.1 million tonnes

compared to 15.0 million tonnes in FY2016, driven by :

strong demand growth from the Chinese civil aviation industry with total air passenger

throughput hitting a new high of 552 million* in 2017, an increase of 13% year-on-year;

Aviation Marketing segment continued to extend geographic footprint across North America,

Europe and Asia Pacific regions, lifted by:

an extended market reach to 48 supply locations in over 20 countries with supply

volumes outside mainland China growing 8% year-on-year to 2.06 million tonnes;

healthy global air travel demand hitting a record of 4.1 billion air passengers in 2017

with a 7.1% year-on-year growth for global civil aviation industry.

23

Revenue - Middle Distillates

Core Jet Fuel Business Remains Resilient

US$’millions

*Source: Civil Aviation Administration of China (CAAC)

3,115.83,553.4

1,978.0

3,949.1

6,034.4

1,042.41,282.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2013 2014 2015 2016 2017 4Q2016 4Q2017

Supply and trading volumes of other oil products jumped 25.2% to 17.5 million tonnes in FY2017,

reflecting underlying growth momentum in:

diversified transportation fuels portfolio in global demand markets;

further inroads made in growing Middle East market for Fuel Oil and expanding oil product

services such as bunker refuelling, thereby establishing an integrated global supply and

trading value network for other oil products segment;

expanding geographical customer base with secured supply contracts for Crude Oil.

24

Revenue - Other Oil Products US$’millions

Strong Performance from Other Oil Products

China 80%

South Korea 5%

Singapore 9%

Other Regions 6%

FY2017

US$5.5

billion

US$16.3

billion

FY2010

China

47.4%

Singapore

13.6%

USA

5.5%

Hong Kong SAR

8.0%

Australia

1.0%

Middle East

6.1%

Europe

3.9%

Other Regions

8.9%

25

Malaysia

2.9%

CAO’s International Revenue Base

South Korea

2.7%

70.2

49.2

61.3

88.985.3

17.914.0

52.5

27.435.4

44.138.7

10.6 8.30

10

20

30

40

50

60

70

80

90

100

2013 2014 2015 2016 2017 4Q2016 4Q2017

Net Profit Gross Profit

26

US$’ millions

Net Profit declined 4.0% to US$85.3 million due mainly to increased tax exposure arising from

accounting for deferred taxation with the Group’s increased profit contribution from its associates

Gross Profit declined 12.1% to US$38.7 million due to lower gains from trading and optimisation

activities as oil markets slipped into backwardation in 2H 2017, further exacerbated by higher

supply and operational cost across the value chain due to adverse weather conditions and

refineries outages in 3Q 2017.

Sustained Growth Performance

Strategic oil-related investments yield healthy recurring incomes:

Share of profits from SPIA increased 5.8% to US$64.2 million for FY2017, mainly

attributable to higher operating profit as a result of higher refuelling volumes in FY2017.

Share of profits from OKYC increased 19.5% to US$5.0 million for FY2017, attributable to

higher operating profit from its tank storage leasing activities.

46.543.2 42.3

66.471.5

13.316.8

0

10

20

30

40

50

60

70

80

2013 2014 2015 2016 2017 4Q2016 4Q2017

27

Sustainable Income Streams from Associates

US$’ millions

Share of Results from Associates

FY2017 Profit & Loss Summary

28

Revenue

FY2017 : US$16,267.6m FY2016 : US$11,703.2m

Higher revenue primarily due to the increase in trading volume

and oil prices

FY2017 : US$38.7m FY2016 : US$44.1m

Gross Profit

Lower gains from trading and optimisation activities as markets

reclined to backwardation in 2H 2017, further exacerbated by

increase in supply and operational costs incurred due to various

supply disruptions caused by weather and refineries outage in

3Q 2017

FY2017 : US$21.8m FY2016 : US$19.9m

Total Expenses

Mainly attributable to higher professional fees incurred for

business development and higher interest expense from short-

term borrowings

FY2017 : US$71.5m FY2016 : US$66.4m

Share of Results

of Associates Higher profit contribution from SPIA and OKYC

FY2017 : US$85.3m FY2016 : US$88.9m

Net Profit

Mainly due to decrease in gross profit and increased tax

exposure with the Group’s increased profit contribution from its

associates

+39.0%

-12.1%

+9.7%

+7.8%

-4.0%

29

Revenue

4Q2017: US$4,060.7m 4Q2016: US$3,275.7m

Higher revenue primarily due to increase in oil prices

4Q2017 : US$8.3m 4Q2016 : US$10.6m

Gross Profit Lower gains derived from trading and optimisation activities

4Q2017 : US$8.8m 4Q2016 : US$6.0m

Total Expenses

Higher professional fees incurred for business development and

interest expenses from short-term borrowings drawdown for

working capital purposes

4Q2017 : US$16.8m 4Q2016 : US$13.3m

Share of Results

of Associates Mainly due to higher contributions from SPIA

4Q2017 : US$14.0m 3Q2016 : US$17.9m

Net Profit

Due mainly to increased tax exposure arising from accounting for

deferred taxation with the Group’s increased profit contribution

from its associates

+24.0%

-21.3%

+45.3%

+26.2%

-21.7%

4Q 2017 Profit & Loss Summary

30

Inventories

31 Dec 2017: US$209.6m 31 Dec 2016: US$170.7m

Increase in inventories held for trading +22.8%

Trade and Other Receivables

31 Dec 2017: US$1,069.1m 31 Dec 2016: US$590.6m

Due to higher oil prices and monthly trading volume +81.0%

Cash and Cash Equivalents

31 Dec 2017: US$300.0m 31 Dec 2016: US$287.3m

Mainly due to higher bank interest income and dividend income

received from associates +4.4%

Trade and Other Payables

30 Dec 2017: US$1,060.2m 31 Dec 2016: US$587.8m

Due to higher oil price and monthly trading volume in December

2017 compared to a year ago +80.3%

Loans and Borrowings

30 Dec 2017: US$120.0m 31 Dec 2016: US$100.0m

Mainly due to higher short-term working capital requirements

Balance Sheet Summary

+20.0%

31

Significant volatility with intensified geopolitical uncertainties to remain, leading to significant

volatility in oil trading environment as global oil demand and supply undergoes re-balancing.

Nonetheless, CAO remains focused on driving its developmental strategy of “Globalisation,

Integration & Asset Investment” to deliver sustainable profitable growth through :

continuing to drive globalisation strategy to further expand global footprint in target key

aviation hubs and strengthen the core jet fuel supply and trading business;

leveraging improved operational initiatives to optimise a global integrated value chain

and seek opportunities to grow its diversified transportation fuels portfolio;

exercising stringent risk management to mitigate trading risks, heightened corporate

governance practices to ensure safe global operations and;

pursuing market opportunities for inorganic growth through strategic acquisitions and

investments in synergetic businesses.

CAO will remain focused on its vision to create long-term value for its shareholders.

Outlook & Priorities

Title

Vision

To be a constantly innovating global top-tier

integrated transportation fuels provider

CAO is a constituent stock of the MSCI Singapore Small Cap Index,

FTSE ST China Index and FTSE ST Small Cap Index since June 2017.

Thank You