CONSOLIDATED STATEMENT OF FINANCIAL POSITION

1 176 PETRONAS Dagangan Berhad Annual Report 2017 Note2017RM'0002016RM'000 ASSETSP roperty, plant and equipment33,372,2923,794,252 Prepaid lease payments4456,821476,856 Investments in associates61,5563,431 Investments in joint ventures714,63014,234 Long term receivables8-3,509 Deferred tax assets9-5,424 TOTAL NON-CURRENT ASSETS3,845,2994,297,706 Inventories10869,241803,374 Trade and other receivables111,675,9511,832,196 Cash and cash equivalents123,357,7422,431,637 TOTAL CURRENT ASSETS5,902,9345,067,207 TOTAL ASSETS9,748,2339,364,913 EQUITYS hare capital13993,454993,454 Reserves 145,008,2024,309,520 Total equity attributable to shareholders of the Company 6,001,6565,302,974 Non-controlling interests1539,02533,552 TOTAL EQUITY 6,040,6815,336,526 LIABILITIESB orrowings1648,90984,461 Deferred tax liabilities9140,099142,128 Other long term liabilities and provisions1730,99630,169 TOTAL NON-CURRENT LIABILITIES220,004256,758 Borrowings1618,36634,310 Trade and other payables183,359,1123,659,660 Taxation110,070 77,659 TOTAL CURRENT LIABILITIES3,487,5483,771,629 TOTAL LIABILITIES3,707,5524,028,387 TOTAL EQUITY AND LIABILITIES9,748,2339,364.

2 913 The notes set out on pages 187 to 241 are an integral part of these FINANCIAL STATEMENT OF FINANCIAL POSITION as at 31 December 2017177 FINANCIAL ReviewWho We Are Business ReviewEmbedding ResponsibilityAdditional InformationStrategic Business Context A Framework of Trust CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEfor the year ended 31 December 2017 The notes set out on pages 187 to 241 are an integral part of these FINANCIAL '0002016RM'000 Continuing operationsRevenue - sales of petroleum products26,718,328 21,512,255- rendering of services19,53222,303 26,737,86021,534,558 Cost of revenue - cost of petroleum products(24,382,254) (19,436,953)- cost of services (25,430) (26,044)(24,407,684)(19,462,997)Gross profit 2,330,1762,071,561 Selling and distribution expenses (275,531) (251,261)Administration expenses(1,016,729) (1,020,218)Other income 402,628390,496 Operating profit 1,440,5441,190,578 Financing costs19(6,689) (5,535)Share of profit after tax of equity accounted associates and joint ventures4,0025,340 Profit before taxation1,437,8571,190,383 Tax expense20 (349,917) (294,679)

3 Profit from continuing operations1,087,940895,704 Profit from discontinued operations, net of tax21457,02950,763 Profit for the year221,544,969946,467 Other comprehensive incomeItems that may be reclassified subsequently to profit or lossExchange differences arising from translation of FINANCIAL statements of foreign operations(23,952)7,693 Reclassification of foreign currency translation differences to profit or loss on disposal of subsidiaries(27,420)3,729 Total other comprehensive (expense)/ income for the year(51,372)11,422 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,493,597957,889178 PETRONAS Dagangan Berhad Annual Report 2017 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the year ended 31 December 2017 (Continued)Note2017RM'0002016RM'000 Profit attributable to:Shareholders of the Company1,539,496944,608 Non-controlling interests5,4731,859 PROFIT FOR THE YEAR1,544,969946,467 Total comprehensive income attributable to.

4 Shareholders of the Company1,488,124956,030 Non-controlling interests5,4731,859 TOTAL COMPREHENSIVE INCOME FOR THE YEAR1,493,597957,889 Basic earnings per ordinary share23 from continuing senfrom discontinued sen The notes set out on pages 187 to 241 are an integral part of these FINANCIAL ReviewWho We Are Business ReviewEmbedding ResponsibilityAdditional InformationStrategic Business Context A Framework of Trust CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the year ended 31 December 2017 Attributable to shareholders of the CompanyNon-distributableDistributableNot eShare capitalRM'000 Foreign currency translation reserveRM'000 Capital reservesRM'000 Retained profitsRM'000 TotalRM'000 Non-controlling interestsRM'000 Total equityRM'000At 1 January 2016993,454 40,213 (47,122)

5 3,965,774 4,952,319 31,693 4,984,012 Exchange difference arising from translation of FINANCIAL statements of foreign operations-7,693--7,693 -7,693 Disposal of subsidiaries acquired under common control business combination in prior years-3,72928,316 (28,316)3,729 -3,729 Total other comprehensive income/(expense) for the year-11,42228,316 (28,316)11,422-11,422 Profit for the year---944,608944,608 1,859946,467 Total comprehensive income for the year-11,42228,316916,292956,0301,859957, 889 Distribution to shareholders of the Company Reversal of capital contribution on disposal of subsidiaries--(9,303)-(9,303)-(9,303)Div idends paid24 --- (596,072)(596,072)-(596,072)Total transactions with shareholders of the Company--(9,303) (596,072)(605,375)-(605,375)At 31 December 2016993,45451,635(28,109)4,285,9945,302, 97433,5525,336,526 Note 13 Note 14 Note 14 Note 15 The notes set out on pages 187 to 241 are an integral part of these FINANCIAL Dagangan Berhad Annual Report 2017 CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the year ended 31 December 2017(Continued)

6 Attributable to shareholders of the CompanyNon-distributableDistributableNot eShare capitalRM'000 Foreign currency translation reserveRM'000 Capital reservesRM'000 Retained profitsRM'000 TotalRM'000 Non-controlling interestsRM'000 Total equityRM'000At 1 January 2017993,45451,635(28,109)4,285,9945,302, 97433,5525,336,526 Exchange difference arising from translation of FINANCIAL statements of foreign operations- (23,952)--(23,952) - (23,952) Disposal of subsidiaries acquired under common control business combination in prior years- (27,420)23,925(23,925)(27,420) - (27,420) Total other comprehensive (expense)/income for the year- (51,372)23,925(23,925)(51,372)- (51,372)Profit for the year- --1,539,4961,539,4965,4731,544,969 Total comprehensive (expense)/income for the year- (51,372)23,9251,515,5711,488,1245,4731,4 93,597 Distribution to shareholders of the Company Reversal of capital contribution on disposal of subsidiaries--(14,548)-(14,548)-(14,548) Dividends paid24---(774,894)(774,894)- (774,894)Total transactions with shareholders of the Company--(14,548)(774,894)(789,442)- (789,442)At 31 December 2017993,454263(18,732)

7 5,026,6716,001,65639,0256,040,681 Note 13 Note 14 Note 14 Note 15 The notes set out on pages 187 to 241 are an integral part of these FINANCIAL ReviewWho We Are Business ReviewEmbedding ResponsibilityAdditional InformationStrategic Business Context A Framework of Trust CONSOLIDATED STATEMENT OF CASH FLOWSfor the year ended 31 December 2017 Note2017RM'0002016RM'000 CASH FLOWS FROM OPERATING ACTIVITIESP rofit before taxation from:- continuing operations1,437,8571,190,383- discontinued operations458,46953,419 Adjustments for:Depreciation and amortisation363,172390,302 Impairment loss on receivables5,048104,238 Write back of impairment loss on trade receivables(9,268)(824)Share of profit after tax of equity accounted associates and joint ventures (4,222)(5,619)Gain on disposal of subsidiaries21(430,834)(35,610)Net gain on disposal of property, plant and equipment(22,688)(34,566)Interest income from fund and other investment(94,716)(86,288)Financing costs7,0527,661 Property, plant and equipment written off3,1786,569 Net unrealised foreign exchange loss4,643578 Operating profit before changes in working capital 1,717,6911,590,243 Inventories(71,215)(176,506)

8 Trade and other receivables118,665(251,654)Trade and other payables(326,940)1,060,546 Cash generated from operations1,438,2012,222,629 Taxation paid(319,485)(296,027)Net cash generated from operating activities1,118,7161,926,602 CASH FLOWS FROM INVESTING ACTIVITIESI nterest income from fund and other investments 94,71686,288 Purchase of property, plant and equipment(58,781)(200,030)Proceeds from disposal of prepaid lease assets4,195514 Proceeds from disposal of property, plant and equipment39,30647,722 Cash flow on disposal of subsidiaries, net of cash disposed of21552,408(3,813)Dividend received from jointly-controlled entity3,3621,250 Net cash generated from/(used in) investing activities635,206(68,069)The notes set out on pages 187 to 241 are an integral part of these FINANCIAL Dagangan Berhad Annual Report 2017 CONSOLIDATED STATEMENT OF CASH FLOWSfor the year ended 31 December 2017(Continued)Note2017RM'0002016RM'000 CASH FLOWS FROM FINANCING ACTIVITIESD ividends paid24(774,894)(596,072)Repayment of term loan(25,619)(10,570)Repayment of revolving credit facilities(5,928)(65,319)Repayment of Islamic financing facilities(17,726)(17,175)Interest paid on revolving credit and term loan(386)(2,126)

9 Profit margin paid for Islamic financing facilities(3,405)(3,584)Net cash used in financing activities(827,958)(694,846)NET INCREASE IN CASH AND CASH EQUIVALENTS 925,9641,163,687 NET FOREIGN EXCHANGE DIFFERENCES1413,557 CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR2,431,6371,264,393 CASH AND CASH EQUIVALENTS AT END OF THE YEAR3,357,7422,431,637 CASH AND CASH EQUIVALENTS Cash and cash equivalents included in the STATEMENT of cash flows comprise the following STATEMENT of FINANCIAL POSITION amounts:2017RM'0002016RM'000 Cash with PETRONAS Integrated FINANCIAL Shared Services Centre 3,008,7692,249,440 Cash and bank balances265,557127,390 Deposits placed with licensed banks83,41654,8073,357,7422,431.

10 637 The Group has changed the presentation format of the STATEMENT of Cash Flows from direct to indirect method so as to provide better information to the users of its FINANCIAL notes set out on pages 187 to 241 are an integral part of these FINANCIAL ReviewWho We Are Business ReviewEmbedding ResponsibilityAdditional InformationStrategic Business Context A Framework of Trust STATEMENT OF FINANCIAL POSITIONas at 31 December 2017 Note2017RM'0002016RM'000 ASSETSP roperty, plant and equipment33,138,3703,437,628 Prepaid lease payments4456,821476,856 Investments in subsidiaries529,010281,975 Investments in associates6530530 Investments in joint ventures72525 TOTAL