9M/Q3 2018 FINANCIAL RESULTS

SIPCHEM Q3 2018 EARNINGS CALL

Date: Wednesday, October 24, 2018

Time: 03:30 PM (Saudi)

04:30 PM (Dubai)

01:30 PM (London)

08:30 PM (New York)

SIPCHEM Q3 2018 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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9M/Q3 2018 RESULT

Highlights

Operations

Financials

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Plant Performance

CHEMICALS BUSINESSChemical Product Performance

Market Update:

• Most Chemicals prices were stable in Q3 2018

• Methanol• Butanediol,

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

Monomer and Ethyl / Butyl Acetate

-2.5%-10.5%

Q3 2017

551

Q3 2018

537

Q2 2018

600

Sales ('000 MT)

-5.5%-7.1%

Q3 2017

592

Q3 2018

559

Q2 2018

609

Production ('000 MT)

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Plant Performance

POLYMERS BUSINESSPolymers Product Performance

Market Update:

• Polymer prices were mostly higher during Q3 2018 in comparison to Q2 2018

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

+1.5%+8.3%

Q3 2017

64

Q3 2018

65

Q2 2018

60

Sales ('000 MT)

+16%+3.2%

Q3 2017

54

Q3 2018

63

Q2 2018

61

Production ('000 MT)

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SAR Million 2014 20152016IFRS

2017IFRS

2018- 9M IFRS

Capex/Depreciation (x) 1.8 1.0 0.7 1.0 1.1

Avg days on Stream-YTD % 84% 88% 90% 85% 92%

Avg days on Stream- Q3 % 90% 84% 90% 90% 93%

Sales/employee 3.9 3.0 3.4 4.6 5.6 *Annul

Profitability and Performance

Sustainability FocusCapabilities FocusGrowth Focus

Efficiency and Effectiveness

Capital Structure, Investment / Financial Risk

Liquidity and Stability

SAR Million 2014 20152016IFRS

2017IFRS

2018- 9M IFRS

Sales 4,124 3,515 3,515 4,460 3,983

EBITDA 1,747 1,234 1,165 1,648 1,618

EBITDA Margin 42.4% 35.1% 33.2% 36.9% 40.6%

SAR Million 2014 20152016IFRS

2017IFRS

2018-9M IFRS

Current Ratio (x) 2.60 2.01 1.58 1.93 1.93

Quick Ratio (x) 2.26 1.64 1.22 1.57 1.51

Cash from Operations 1,612 927 909 1,411 1,177

SAR Million 2014 20152016IFRS

2017IFRS

2018-9M IFRS

Capital Expenditure 1,027 711 479 610 578

ROCE (%) 8.9% 7.5% 3.1% 6.9% 10.0%*Annul

Dividend Cover (x) 1.25 1.25 - - 1.00

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

SIPCHEM HIGHLIGHTS AT A GLANCE….

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YTD Q3 2017

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%

YTD Q3 2017 YTD Q3 2018

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

CHEMICAL

OTHER

POLYMERS

CHEMICAL

OTHER

YTD Q3 2018

65%

25%

10%

62%24%

14%

70%

22%

8%

76%

22%

2%

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FINANCIAL RESULTS Income Statement

(Million, SAR) Q3 2018 Q3 2017 Variance % Change Q3 2018 Q2 2018 Variance % Change

Sales 1,338 1,064 274 26% 1,338 1,474 -136 -9%

Gross Profit 470 367 103 28% 470 545 -75 -14%

% 35% 34% 1% - 35% 37% -2% -

Operating Income 328 254 74 29% 328 410 -82 -20%

% 25% 24% 1% - 25% 28% -3% -

Income before non-controlling interests & Zakat 246 192 54 28% 246 337 -91 -27%

% 18% 18% 0% - 18% 23% -4% -

Zakat & Income tax -14 -11 -3 - -14 -46 32 -

Income before non-controlling interests 232 181 51 28% 232 291 -59 -20%

Non-controlling interest -52 -59 7 - -52 -79 27 -

NET INCOME 180 122 58 48% 180 211 -31 -15%

% 13% 11% 2% - 13% 14% -1% -

Number of Shares in Issue (average), in million 367 367 - - 367 367 - -

EPS - Net Income 0.49 0.33 0.16 48% 0.49 0.58 -0.09 -15%

EPS - Operating Income 0.89 0.69 0.20 29% 0.89 1.12 -0.22 -20%

Q3, 2018 VS Q3 2017 Q3, 2018 VS Q2 2018

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30 September 2018COMPARED TO PREVIOUS PERIODS

Balance Sheet

(Million, SAR) 9/30/2018 12/31/2017 Variance % Change

Current Assets (excl. Inventory) 3,026 2,970 56 2%

Inventory 853 668 185 28%

Fixed Assets 11,235 11,208 27 0%

Other Assets 1,078 1,125 -47 -4%

Total Assets 16,192 15,971 221 1%

Current Liabilities 2,005 1,860 145 8%

Non-Current Liabilities 6,770 6,899 -129 -2%

Shareholders Equity 5,881 5,703 178 3%

Minority Interests 1,536 1,508 28 2%

Total Liabilities & Shareholder Equity 16,192 15,971 221 1%

Current Ratio 1.93 1.96 -0.02 -1%

Quick Ratio 1.51 1.60 -0.09 -5%

ROCE % 10.3% 6.9% 0.03 49%

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Cash flow

9 MOS Q3-2018 VS Q3-2017 CASH FLOW

(Million, SAR) 9/30/2018 9/30/2017 Variance % Change

Net Income 841 469 372 79%

Depreciation 525 475 50 11%

Working Capital / other -189 212 -401 -189%

Net cash provided by operating activities 1,177 1,156 21 2%

Purchase of PPE -578 -398 -180 45%

Others Investing activities -55 -5 -50 1000%

Net cash used in investing activities -633 -403 -230 57%

Changes in short term loans 0 -200 200 -100%

Changes in long term loans 13 38 -25 -66%

Dividends paid -366 0 -366 #DIV/0!

Non controlling interest / other -374 -213 -161 76%

Net cash from financing activities -727 -375 -352 94%

Changes in cash & cash equivalents -183 378 -561 -148%

Cash & cash equivalents at 1 Jan 1,723 1,823 -100 -5%

Exchange rate Changes Impact 0 -1 1 -135%

Cash & cash equivalents at end of period 1,540 2,200 -660 -30%

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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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