Developing talent in a global environment – pursuing success with the employment value proposition

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Background of PETRONAS - Video

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Further add value to oil and gas molecules apart from operational excellence

Corporate Strategy & Risk

Group HSE

Group HRM

Group Internal Audit

Upstream Downstream

Explore, develop, produce and monetise oil and gas resources

President/CEO

Corporate

Businesses

Datuk Wan Zulkifli Wan Ariffin

(President/CEO PETRONAS)

Group Finance

Group General Counsel

Group Strategic Communications

Group Security

Fully integrated business along the petroleum value chain led by a dedicated leadership team

Our Current Corporate Structure

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18

6,715

13,136

25,733

33,944

40,992 46,145

49,193 [VALUE]

1974 1985 1995 2002 2005 2010 2012 2013 2014

Workforce Composition

Worldwide Operations

• Exploration & Production ventures in more than 20 countries

• LNG facilities in Malaysia, Egypt, UK, and Australia • Refineries and petroleum product retail leader in

Malaysia and South Africa

Workforce Strength (total headcount)

* Note: Data as at December 2014

20%

21%

2012 2014

Non-Malaysian

86

104

2012 2014

Nationalities

27%

28%

2012 2014

Women Workforce

52%

54%

2010 2014

<35 years old

18%

20%

2012 2014

% Women Workforce in Management

The pace of globalisation has now accelerated to new heights

Pioneering Spirit

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Presence of diverse talents across the globe requires integration & alignment of talent strategies with business aspirations

HCN 1,485

Malaysian 182 Others 93

Asia – 1,760

FSU – 608

HCN 488

Malaysian 118 Others 2

Malaysia – 40,996 Malaysian 39,108 Expatriate 1,888

Europe – 1,065 HCN 1,001

Malaysian 27 Others 37

Middle East & Africa – 5,184

HCN 4,768

Malaysian 375 Others 41

North America – 374 HCN 318

Malaysian 31

Others 25

South America – 388 HCN 386

Malaysian 1

Others 1 Australia – 47 HCN 23

Malaysian 18 Others 6

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Our workforce has grown over 3 times in the past 20 years

1995

~ 13,200 ~ 51,000 (21% Non-Malaysian)

2015

3x the size

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We need sufficient and strong leaders to realize our aspirations

Expand portfolio of international assets

2019

More than 55000 staff

Refinery capacity increased by 76%

Double LNG production capacity

2x lubricant sales volume

Double petrochemicals

output 2015

Focus on individual strength to increase breadth of diversity Results driven talent development Shared accountability & responsibility in developing talent Double the number of leaders to be developed in half the time Deeper capabilities and focused competencies in key areas

Talent Development

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42.3

30.7

18.2

38.5 32.4

75.3

105.2

67.0

115.2 108.7

52.4 49.9

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Oil Price (USD/Barrel)

• Operational efficiency

• Optimising portfolios • Deferment of projects

• Cost optimisation

The Employment Value Proposition (EVP) is key in retaining and motivating talents

Rapid drop in oil prices inevitably affected the industry and its workforce

Current shift in the Global Oil Market

2015

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PETRONAS Employment Value

Proposition (EVP)

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TRUST GROW

REWARD

A deep sense of honor, pride and commitment to belong to an organisation that is anchored in a strong tradition of ethics and integrity

A rich, multicultural environment that celebrates diversity and promotes equal opportunity

A challenging and fulfilling career with an expanding global organisation

A wealth of opportunities to grow expertise, skills and experience

An environment which promotes leadership, innovation and creativity

A work place that rewards competitively based on performance

An environment where your contributions are recognised and appreciated

Promises an enriching experience anchored along Trust, Grow & Reward

Our Employment Value Proposition (EVP)

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• Accelerate technical capability

• Build trade skills & knowledge

• Apply culture-driven leadership & differentiation

• Mobilise cross-borders

• Balance between

‘Build’ and ‘Buy’ talents

• Progressively localise talents

• Deploy talents with scarce skills

• Leverage on education

SOURCE

• Drive standard

Employee Performance

• Steer equal opportunity career growth

• Identify & pursue top talent

PERFORM

DEVELOP

Managing global talent hinges on effective global mobility for career growth & competitive rewards

Responding to the challenge

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Distinctive Talent

Capability Development

Facilitate Maritime Education & Training

Facilitate Management Skills, Leadership and Competency Development

Facilitate Technical Skills and Competency Development

Facilitate Development of “well-rounded” Graduates, and Facilitate Development of Technology through R&D.

The seeds for growth are sown both at pre and during employment

Leverage on Education

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• Accelerate technical capability

• Build trade skills & knowledge

• Apply culture-driven leadership & differentiation

• Mobilise cross-borders

• Balance between

‘Build’ and ‘Buy’ talents

• Progressively localise talents

• Deploy talents with scarce skills

• Leverage on education

SOURCE

• Drive standard

Employee Performance

• Steer equal opportunity career growth

• Identify & pursue top talent

PERFORM

DEVELOP

Managing global talent hinges on effective global mobility for career growth & competitive rewards

Responding to the challenge

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Coaching, Review & Feedback Continuous engagement driver that accelerates the journey towards the aspiration in becoming a High Performing Organisation

Wholesome Appraisal Superior and subordinate will collect data and evidences to conduct the periodic and Year End performance review with consist of Performance Objectives, Leadership Behaviour, Shared Values and People Management Contribution

Employees are entrusted at the driver seat in driving their performance with the superiors alongside providing continues coaching and feedback

Employee Performance Management

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Talent as Leader

Capability

Performance

Talent Management

Accelerated Skill Development

Experiential Learnings

Coaching & Mentoring

Harnessing Deploy

Onboarding

Work Life Balance

Career Advancement

Code of Conduct & Business Ethics

Well-being

Talent Sourcing

Leaders in PETRONAS will experience the ‘value proposition’ in their career journey in PETRONAS

Our Talent Management is aligned to the EVP

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Thank You

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ACD has successfully improved time to autonomy (TTA) that equipped talents with strong foundation in key skills

0 2 4 6 8 10

2009

2010

2011

2012

2013

2015

9 Years 2 Months

8 Years 5 Months

7 Years 10 Months

7 Years 7 Months

7 Years 4 Months

7 Years

- 9m

- 7m

- 3m

- 3m

PETRONAS target

Average Time To Autonomy for overall talents is 14 years 5 months

Source: ACD information obtained from TCM. Progression rate based on HRIS data 31st July 2014.

30% of Technical Executives is expected to achieve time to autonomy at 7 years

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Functional & Leadership Learning

Programs

Functional & Leadership

Coaching and Mentoring Program

Mobility/ Rotation and

Job Attachment

Multiple and Dynamic platforms made available to ensure development in both Functional and Leadership capabilities

Holistic Learning & Development