Inspiring Tomorrow - Corporate Presentation slide image

Inspiring Tomorrow - Corporate Presentation

KEY FINANCIAL POLICIES Dividend Policy بروج Borouge 777 Borouge intends to adopt a semi-annual dividend distribution policy, with H1 dividend of the financial year paid out in September of that year and the H2 dividend paid out in March of the following calendar year Borouge intends to pay the amount of $975m in dividends for the period of Q2 to Q4 of the financial year 2022. Of this amount, $325m will be paid in September 2022, covering the period of Q2 2022, and $650m will be paid in March 2023, covering the period of H2 2022 ▪ For the financial year 2023, Borouge intends to make a dividend distribution of no less than $1,300m Going forward Borouge intends to maintain a robust dividend policy designed to return to shareholders substantially all of its distributable free cash flows, while maintaining an investment grade credit profile ■ Dividend payments will be subject to Board discretion and market conditions ■ Dividends will be paid in cash Target Capital Structure and Borouge 4 Considerations ■ Due to its advanced technology and ability to produce differentiated PE grades, Borouge 4 is targeting EBITDA margins significantly above its current levels Following the completion of Borouge 4 and the reset of the ethane pricing mechanism in Dec-2027, Borouge targets an overall EBITDA margin of >40% Borouge 4 is expected to be accretive to operating cash flows and dividends Borouge seeks to maintain a robust capital structure and remain committed to its long-term target capital structure, maintaining an investment grade credit profile Borouge maintains access to diversified funding markets through a strong supportive group of top tier regional and international banks 80 Corporate Presentation | April 2022 INSPIRING TOMORROW
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