OSK Holdings Bhd 29th Annual General Meeting

Financials 31 December 2018

30 April 2019 Disclaimer • This presentation/document (“presentation”) has been prepared by OSK Holdings Berhad and its subsidiaries (“OSK Group”). All information contained in this presentation is published for reference only. Expressions of opinion, forecasts or intentions contained herein are subject to change without notice and should not be taken as advice or obligations of the OSK Group. The information in this presentation may differ or be contrary to the opinions or recommendations expressed by other business areas of the OSK Group as a result of using different assumptions and criteria.

• The information contained herein is obtained in good faith from sources believed to be reliable. This document does not purport to contain all of the information that may be required to evaluate and should not be relied on in connection with any potential transaction. Neither the OSK Group nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this presentation and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed.

• All rights are hereby reserved. The contents of this presentation are confidential and accordingly may not be reproduced or copied to any unauthorized persons or incorporated into another document or other materials without the prior written consent of the OSK Group.

2 Financials Highlights

Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template. Financial Performance Highlights

Change RM million 2018 2017 Change (%)

Revenue 1,204 1,169 35 3

Profit Before Tax 395 485 (90) (18) Share of Profits 237 182 55 30

Profit After Tax 352 404 (52) (13)

Profit After Tax & 346 400 (54) (13) Non-controlling interests

Earnings per share (sen) 16.66 19.27 (2.61) (13)

ROE 7.6% 9.1%

4 Core Performance Highlights Change RM million 2018 2017 Change (%) Core Profit Before Tax 302 254 48 19

Core Profit After Tax 270 197 72 36 Non-Core Profit After Tax 82 207 Total Profit After Tax 352 404 (52) (13)

Core Profit After Tax & 264 194 70 36 Non-controlling interests Core Earnings per share (sen) 12.72 9.34 3.38 36

* Core Profits exclude: FY2018: FY2017: RM93 million (PBT) / RM82 million (PAT) gains • RM178 million (PBT & PAT) gain on deemed disposal arising from on disposals of Swiss-Garden Hotel Kuala the dilution of equity interest in a subsidiary company in Melbourne, Lumpur and Garden Lodge in Sydney, Australia. Australia and realisation of foreign currency translation gains; and • RM53 million (PBT) / RM50 million (PAT) gain on fair valuation of investment properties. • RM21 million (PAT) reversal of deferred tax assets for projects 5 5 Years Revenue, Reported PBT & Core PBT

PBT Revenue RM ‘mil RM ‘mil 700 1,400 1,306 1,204 600 1,200 605 1,169

500 1,000 485

400 800 758 395

300 321 600 302 276 255 200 226 400 216 204

100 200

60 - - 2014 2015 2016 2017 2018

Reported PBT Core PBT Revenue 6 Financial Performance by Segments

Financial Property Construction Industries Hospitality Services

▪ Property ▪ Capital ▪ Building ▪ Cables ▪ Hotels and Development Financing ▪ Civil ▪ Industrialised Resorts ▪ Property ▪ Investment Building ▪ Vacation Investment Holding System (IBS) Club and Management

Revenue 60% 6% 1% 24% 9%

Core 34% 56% (3%) PBT 4% 9%

7 4 Years Segmental Revenue & PBT RM ‘mil Segmental Revenue RM ‘mil Segmental PBT

120.7 1,200 13.7 570 112.4 106.6 11.0 378.3 30.3 • Negative goodwill: 1,000 470 PH & PJD acquisitions • RHB Rights Issue 230.7 • FV gain on IP • Gain on deemed disposal: YPC • FY gain on IP 800 370 93.4 824.8 45.6 • Gain on disposal 53.8 720.8 of PPE: hotels 12.6 688.8 • FV gain on IP • Impairment of PPE 12.1 7.1 600 270 12.0 104.2 8.1 78.3 6.2 144.6 537.5 26.0 400 170 88.7 25.6

9.7 33.3 169.3 200 298.3 289.3 293.0 70 149.8 113.7 103.8 113.8 (9.6) 39.8 48.1 54.3 66.8 (13.0) (11.2) - (30) 2015 2016 2017 2018 2015 2016 2017 2018 8 Financial Position Highlights Change RM million 2018 2017 Change (%) Total Assets 8,093 7,903 190 2

Cash and Cash Equivalents 529 425 104 24

Total Liabilities 3,423 3,296 127 4 Borrowings 2,475 2,267 208 9 Net Debts 1,946 1,824 122 7 Shareholders’ Funds 4,597 4,539 58 1

Net Gearing Ratio (times) 0.42 0.40 0.02 5

Net Assets per share RM2.21 RM2.19 RM0.02 1

9 5 Years Net Assets per Share, Shareholders’ Funds, Total Assets & Total Liabilities

10 Segments Assets and Liabilities

11 Property Development

Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template. Major Projects –

GDV: RM 275 mil GDV: RM 715 mil GDV: RM 660 mil Take-up-rate: Take-up-rate: Take-up-rate: 93% 71% (Pastura)​ & 70% (Astera) 77% (Phase 1)​ & 15% (Phase 2)

GDV: RM 380 mil GDV: RM 280 mil Take-up-rate: 83% Take-up-rate: 77% GDV: RM 250 mil

Take-up-rate: 95% 13 Melbourne Square – Phase 1 Launched in June 2017 GDV : RM2.8 bil (AUD945mil)

Take-up rate : 65%

Featuring : • 1,054 units apartment • 3,700 sqm of landscaped urban park

• 3,960 sqm (NLA) full-concept Woolworths

• 1,800 sqm (NLA) other retail incl F&B etc.

• 1,600 sqm (NLA) childcare center 14 Melbourne Square – Phase 1 3 completion and hand-over stages to early realize cashflow :

Stage 1 457 apartment units & landscaped park - End 2019 - Est GDV : RM910mil

Stage 2 419 apartment units - Mid 2020 - Est GDV : RM1.05bil

Stage 3 178 apartment units Retail - End 2020 - Est GDV : RM870mil

15 Sales, Unbilled GDV and Unsold GDV RM ‘mil 1,800

1,600 1,600 1,540

1,410 1,400 1,344 576 510 1,200 1,100 1,099 1,030 485 956 1,000 226 326 119

800 358 748 67

600

400

200

- 2017 2018 Year Melbourne Completed Launched GDV Sales Unbilled sales Unsold GDV Square units 16 Land Bank (Malaysia & Australia)

Klang Valley Landbank 1,732 acres • 31 acres • Est. GDV: Est. GDV RM 11.3 billion RM 4.0 bil N. Sembilan • 456 acres GDV (RM‘bil) , • Est. GDV: RM0.3bil, RM 2.1 bil 3% , • 1,221 acres RM2.1bil • Est. GDV: , 19% RM 2.0 bil RM0.7bil You City III, Cheras Penang 6% • 15 acres • Est. GDV: Kedah, RM 0.7 bil Valley, RM2.0bil RM4.0bil 18% Pahang 35% • 6 acres • Est. GDV: Australia, RM 0.3 bil RM2.2bil 19% Australia • 2.5 acres • Est. GDV: RM 2.2 bil

Harbour Place, Butterworth 17 Property Investment

Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template. Property Investment

Office Retail Office & Retail

Plaza OSK Atria Shopping Gallery Faber Towers Jalan Ampang, KL Damansara Jaya Taman Desa, KL

Land area 1.32 acres (FH) Land area 5.47 acres (FH) Land area 2.63 acres (FH)

NLA 236,000 sqft NLA 458,000 sqft NLA 481,000 sqft

Occupancy rate 89% Occupancy rate 92% Occupancy rate 69% - 96%

NBV (fair value) RM155mil NBV (fair value) RM320mil NBV (fair value) RM93mil

19 Financial Services

Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template. Financial Services – Capital Financing • Licensed moneylender governed under the Moneylenders Act Loan Portfolio 1951 (Act 400).

• Provision of short term corporate and personal loan

• Financing for Initial Public Offerings, ESOS, private placements, general offers, rights issues

• Bridging finance for Small Medium Enterprises (SME) and acquisition of assets

• Minimal non-performing loan (NPL)

• Portfolio size of over RM570 million as at 31 December 2018 Estimate

Ratio of 2014 2015 2016 2017 2018 NPL 2.10% 2.30% 0.40% - -

21 Financial Services – Strategic Investment

RM ‘mil Dividend Income from RHB • Arose from the merger 60 80 between OSK Investment 54 71 Bank and RHB via share 70 swap in 2012 50 57 60 • OSK is the third largest 40 shareholder in RHB Bank 48 50 at 10.13% equity interest. 30 40 26

30 20 15 20 10 10

0 0 2013 2014 2015 2016 2017 2018

DRP CASH

22 Industries

Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template. Industries Olympic Cables Acotec

• Produces quality electrical and power cables • Produces Industrialised Building Systems (IBS) wall since 1968. panels since 1994. • Factories located in & Ho Chi Minh City • Factories located in Taiping (), Nilai (Negeri (Vietnam). Sembilan) and Bandar Tenggara (). • Ranked 4th among the market players. • Market leader in Singapore with approximately 30% • Accredited with MS ISO 9001:2000 and UKAS share of hollow-core concrete wall market. Quality Management System, met TNB technical • Accredited with MS ISO 9001:2008, ISO 14001-2004, specification. UKAS Quality Management System and Singapore • Certified by SIRIM QAS, LPCB. Green Label Status. • Machine utilisation : 100% (about RM250m • Factory capacity : 2.3 million m2. turnover capacity). 24 Hospitality

Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template. Hotels and golf course owned and managed by Hospitality – Hotels & Resorts

Swiss-Garden Beach Resort Damai Laut Golf and Country Swiss-Garden Beach Damai Laut, Perak Club, Perak Resort Kuantan, Pahang 291 rooms, 4-star Award-winning 18 holes championship golf course 304 rooms, 4-star Occ rate: 48% Occ rate: 52% ARR: RM213 ARR: RM242

Swiss-Inn Chinatown, Swiss-Inn , Swiss-Inn , Kedah Johor 150 rooms, 3-star 101 rooms, 3-star 204 rooms, 3-star Occ rate: 42% Occ rate: 51% Occ rate: 46% ARR: RM100 ARR: RM120 ARR: RM126 26 Hospitality – Hotels & Resorts

Hotels managed by Opening in June 2019

Swiss-Garden Swiss-Garden Swiss-Garden Swiss-Garden Hotel Bukit Bintang Residences Kuala Resort Residences Genting Lumpur Sg Karang Location Kuala Lumpur Kuala Lumpur Kuantan, Pahang , Pahang

Rooms 296 92 105 540

Occ rate 56% 51% 38% -

ARR RM176 RM120 RM203 -

27 Hospitality – Vacation Club • 6 products – 30 years & 15 years • Selling price ranging from RM17k to RM22k • Annual Maintenance fee – RM400 – RM680 p.a • 12,350 active members • Serviced by 5 sales offices • 3,000 hotels and resorts destination worldwide • Home-based destinations with 244 rooms inventories • Global Exchange Partner – Interval International

Swiss-Villas Damai Laut, Perak Swiss-Court Holiday Swiss-Garden Beach Resort Apartments Damai Laut, Perak Damai Laut, Perak

Swiss-Garden Beach Resort Swiss-Garden Residences SGI Vacation Club Melaka Kuantan Kuala Lumpur 28 Dividend Track Record

Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template. 5 Years Historical Dividends

Cents Dividend Yield (%) 25.00 14.00% 12.27%

12.00% 20.00 20.00

10.00%

15.00 8.00%

5.36% 5.61% 5.75% 6.00% 10.00 7.50 7.50 6.00 4.00% 3.69% 5.00 5.00 2.00%

0.00 0.00% 2014 2015 2016 2017 2018

DPS DY (%)

30 Dividends declared/proposed

Single-tier dividends 2018 2017 2018 2017

Dividend per share Total amount

Sen RM’000

Dividend declared/proposed:

Interim 2.0 2.5 41,544 34,620

Final * 3.0 3.5 62,316 72,702

5.0 6.0 103,860 107,322

* Subject to Shareholders’ approval. Entitlement date : 7 May 2019 Payment date : 23 May 2019

31 Thank You