Beyond Boundaries UMW Holdings Berhad Corporate Presentation

17 July 2018

UMW HOLDINGS BERHAD 1 Introduction

UMW HOLDINGS BERHAD 2 OUR JOURNEY Enhancing our capabilities

Laying the building blocks for excellence

Founded in 1917 Equipment Distribution Automotive Assembly Aerospace

Bicycle repair shop >50 years with Komatsu >36 years with >50 years with TICO >25 years with

Fan Case Manufacturer for Rolls-Royce Tier 1 supplier

UMW HOLDINGS BERHAD 3 OUR SHAREHOLDERS As at 29/06/2018

PNB

▪ Permodalan Nasional Berhad & PNB Managed Unit Trust Funds, 58.53%

58.53%

RM 7.0b EPF 29/06/2018 Foreign Shareholders Market Capitalisation ▪ Employees Provident Fund Board, 9.86% ▪ Foreign Shareholders, 10.92% 9.86%

10.92% 14.43% 6.26%

Other Local Shareholders KWAP

▪ Other Local Shareholders, 14.43% ▪ Kumpulan Wang Persaraan (Diperbadankan), 6.26%

UMW HOLDINGS BERHAD 4 OVERVIEW OF OUR BUSINESSES

01 Automotive 02 Equipment 03 M&E

• Manufacture • Distribution • Blending & distribution • Assembly • Trading of lubricants • Distribution • Leasing • Manufacture • Sales & • After-sales of service service automotive components • Manufacture of fan case

04 Others

Oil & Gas - Unlisted

• Manufacture of OCTG and Line pipes • Land rigs • Trading

UMW HOLDINGS BERHAD 5 INTERNATIONAL PRESENCE 10 countries

Automotive Equipment Myanmar Manufacturing & Engineering Oil & Gas

China

Vietnam

8,788 ▪ Employees Papua New Guinea

Singapore

AA2 Australia ▪ RAM Indonesia ▪ Credit Rating Oman India

UMW HOLDINGS BERHAD 6 Our Automotive business

UMW HOLDINGS BERHAD 7 UMW AUTOMOTIVE SEGMENT

51% 38%

Investment holding, Investment holding and UMW Toyota Motor importation and distribution Perusahaan Otomobil Kedua provision of management and Sdn. Bhd.* of Toyota vehicles and Sdn. Bhd.** administrative services related parts

100% Perodua Sales Marketing and distribution of motor vehicles, related spare parts and Sdn. Bhd. other related activities

49% Perodua Auto Investment holding and 100% provision of management and Assembly Services Assembler of Corporation Sdn. Bhd.*** administrative services vehicles Sdn. Bhd. 51% Perodua Manufacturing Manufacturer and assembler 100% Automotive Industries Manufacturer and 49% of motor vehicles and other supplier of exhaust Sdn. Bhd. related activities Sdn. Bhd. systems 51% Manufacturer and assembler Perodua Global Manufacturing of motor vehicles and other 65% 49% Toyota Boshoku Manufacturer Sdn. Bhd. related activities UMW Sdn. Bhd. of seats 49% Manufacturer and dealer in Perodua Engine Manufacturing component parts including 30% UMW Toyotsu Motors Sales and service of 51% Sdn. Bhd. engines, couplings and Toyota and transmission components Sdn. Bhd. vehicles and parts 30% Ingress Technologies Manufacturer of complete door assemblies and press parts 30% Toyota Capital Malaysia Hire purchase Sdn. Bhd. financing of Toyota Sdn. Bhd. customers 49% 51% Daihatsu Motor Co., Ltd Daihatsu Perodua Engine Manufacturer of engine and engine components for Energy Efficient Manufacturing Sdn. Bhd. Vehicles

* 39% Toyota Motor Corporation ** 20% Daihatsu Motor Co., Ltd 4.2% Mitsui & Co., Ltd ***41% Daihatsu Motor Co., Ltd 10% Toyota Tsusho Corporation 20% MBM Resources Bhd 2.8% Mitsui & Co., ( Asia Pacific) Pte LtdUMW HOLDINGS6% Mitsui Co., BERHAD Ltd 8 10% PNB Equity Resource 5% Daihatsu (Malaysia) Sdn Bhd 4% Mitsui & Co., ( Asia Pacific) Pte Ltd Corporation Sdn Bhd TOTAL INDUSTRY VOLUME (TIV)

TIV % Change Over Previous Year RHS

Total Industry Volume (“TIV”) – Unit Sales LHS

1,200,000 Unit sales 25.0% 12.5% 12.7% 4.6% 4.5% Growth 15.0% 1,000,000 1.6% 0.0% -2.0% -0.8% 5.0% -13.0% -0.6% -5.0% 800,000 666,465 666,674 627,753 655,793 -15.0% 605,156 600,123 580,124 576,635 600,000 548,115 536,905 -25.0% -35.0% 400,000 -45.0% -55.0% 200,000 -65.0% 0 -75.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Malaysian Automotive Association

• Lower sales in 2017 were mainly due to weak consumer sentiment and stringent lending guidelines imposed by the financial institutions.

• Industry forecast for 2018 is 590,000 units (+2.3% growth)

UMW HOLDINGS BERHAD 9 LEXUS & TOYOTA

UMW Toyota Motor Market Share Of TIV RHS

UMW Toyota Motor Unit Sales LHS

200,000 18.6% Unit sales 20.0% 17.0% Market Share 18.0% 15.6% 15.3% 15.2% 14.8% 14.1% 14.4% 16.0% 150,000 12.2% 14.0% 11.2% 12.0% 101,839 106,622 103,636 95,861 100,000 91,990 88,662 92,521 10.0% 82,089 65,110 70,445 8.0% 6.0% 50,000 4.0% 2.0% 0 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Malaysian Automotive Association • Distributes 6 CKD and 7 CBU Toyota models. Lexus models are all CBU. • Top selling Toyota models in 2017 – Vios (35%) and Hilux (27%). • Importation of CBU and CKD components are transacted in US Dollar. • 2018 – more new models from Toyota and Lexus. • Target for 2018 is 70,000 units.

UMW HOLDINGS BERHAD 10 PERODUA

Perodua Market Share Of TIV RHS

Perodua Unit Sales LHS

Unit sales 350,000 40.0% Market Share 35.7% 35.5% 32.0% 300,000 30.5% 31.1% 31.2% 35.0% 30.0% 30.1% 29.9% 29.3% 30.0% 250,000 213,307 207,110 204,887 188,641 189,137 196,071 195,579 25.0% 200,000 179,989 167,393 166,736 20.0% 150,000 15.0% 100,000 10.0% 50,000 5.0%

0 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Malaysian Automotive Association

• Perodua maintained its No. 1 position in overall market share since 2006 (12th consecutive year) • Currently exporting to six countries - Indonesia, Singapore, , , and . • The all-new was launched on 16 November 2017. • Target for 2018 is 209,000 units (+2% growth).

UMW HOLDINGS BERHAD 11 UMW GROUP’S MARKET SHARE Units & Market Share (%)

• UMW companies sold 275,332

2016 units in 2017 with a market 207,110 2016 share of 48% (2016 – 47%) 35.7% 65,110 11.2% 35.5% Perodua 12.2% 204,887 UMW Toyota 70,445 Other Carmakers’ Market Share Brand 2017 2016

Units Market Units Market Share % Share %

Others Honda 109,511 19.0 91,830 15.8 301,303 Proton 70,991 12.3 72,290 12.5 Nissan 27,154 4.7 40,706 7.0 52.3% Mazda 9,730 1.7 12,493 2.2 Hyundai, Kia 8,241 1.4 9,470 1.6 Others 75,676 13.1 81,115 14.0 Total 301,303 307,904 2016 307,904 53.1%

Source: Malaysian Automotive Association

UMW HOLDINGS BERHAD 12 Our Equipment business

UMW HOLDINGS BERHAD 13 EQUIPMENT SEGMENT

Heavy Equipment Industrial Equipment Marine & Power Equipment

UMW represents all of the above principals for some of the world’s most recognised products in:

▪ Agriculture ▪ Construction ▪ Forestry ▪ Mining ▪ Industrial and manufacturing ▪ Industrial cleaning – food and beverage, material handling and logistics ▪ Industrial and marine power solutions

UMW HOLDINGS BERHAD 14 HEAVY EQUIPMENT

Malaysia Myanmar Singapore Since 1965 Papua New Guinea Brunei

• We have the largest equipment servicing fleet in Malaysia and can therefore provide extensive after-sales and maintenance services to our clients wherever they may be.

Since 1979 Since 1996 Delivered 38 units of Rosenbauer Panther Airport Fire Fighting Vehicles to MAHB from 2010-2015

UMW HOLDINGS BERHAD 15 INDUSTRIAL EQUIPMENT

Toyota Forklift Franchise

Malaysia China : Shanghai, Singapore Since 1967 Zhejiang Vietnam Brunei

Strong market leadership position

▪ No. 1 position in Malaysia since 1972. Toyota forklift maintained its 50% market share in Malaysia’s material handling equipment business. ▪ Toyota Forklifts – UMW is one of the Top 5 Distributors in the world. ▪ Globally, UMW is the only Diamond member (the highest elite tier) in the Premier Club Recognition Programme, awarded by Toyota Material Handling International (TMHI). ▪ Also awarded the Undisputed Performance Award by Toyota Material Handling International for outstanding performance. ▪ Have ventured into leasing of Toyota forklifts.

UMW HOLDINGS BERHAD 16 MARINE AND POWER EQUIPMENT

CompAir Honda Air Compressor Power Products

Ingersoll Rand Mitsubishi Centrifugal Marine Engines Compressor

GE Mitsubishi Reciprocating Gen-sets Compressor

UMW HOLDINGS BERHAD 17 Our Manufacturing & Engineering business

UMW HOLDINGS BERHAD 18 KEY PRODUCTS

Aerospace Component Lubricants

Lubricants & Aero Fluids Engine Fan Lubricants & Cases Fluids (China)

Fluids & Chemicals

Auto Components

Shock Automotive Absorbers Components & Power Steering

UMW HOLDINGS BERHAD 19 MANUFACTURE OF AERO ENGINE FAN CASES

UMW Aerospace Sdn Bhd

Component Part Manufacturing for RR’s Most Advanced Passenger Aircraft Engines

UMW is the 1st Malaysian Tier 1 Supplier to Rolls- Royce

• The contract is for the manufacture of fan cases for the Trent 1000 aero engines for 25+5 years (Trent 7000 engines later) for Rolls-Royce.

• Both Trent engines are the most advanced in aero engine technology, with increased fuel efficiency and noise reduction. Part of Rolls-Royce’s Asian Supply Chain • UMW be the only supplier (‘single-source supplier’) for Single Source Final Assembly of the Trent 1000 fan cases for both the engines. and Trent 7000 engines in Singapore

• The manufacturing plant is located in Serendah, .

• Successfully delivered the first fan case on 29 November 2017.

UMW HOLDINGS BERHAD 20 2017 Financial Results

UMW HOLDINGS BERHAD 21 CORE SEGMENTS CONTINUED TO DELIVER HEALTHY RESULTS IN 2017

RM’ m

446 Combined total PBT of RM631m PBT

142

43

Automotive Equipment M&E *

❖ For M&E segment, the PBT displayed is from Auto Components and Lubricants businesses; excluding aerospace unit.

UMW HOLDINGS BERHAD 22 WRITE-DOWN ON INVESTMENTS & PROVISIONS FOR 2017 Part of the exit strategy for the Unlisted oil & gas segment

RM’ m Total 286.3 RM654 253.9 million

113.3

WriteRemeasurement-down of assets of to fair OthersWrite write-down downs on ProvisionProvisions for fair valuevalue - Oil & Gas Inventories & others anticipated early (Unlisted) settlement of financial guarantee

UMW HOLDINGS BERHAD 23 REMAINDER OF THE UNLISTED OIL & GAS SEGMENT Carrying value following write-downs

RM RM 87m 68m Associates & JVs Subsidiaries ▪Remaining carrying value for ▪Remaining carrying value for investments in associates and subsidiaries joint ventures ▪We do not expect any further ▪We do not expect any further material impact to the Group material impact to the Group

UMW HOLDINGS BERHAD 24 REMAINDER OF THE UNLISTED OIL & GAS SEGMENT Companies

No Company Status 1 UMW Synergistic Generation Sdn. Bhd. * ✓ COMPLETED rationalisation 2 Sichuan Haihua Petroleum Steelpipe Co. Ltd. * ✓ COMPLETED 3 PFP Holdings Pty. Ltd. * ✓ Completed disposal of PFP Taiwan

4 UMW Fabritech Sdn. Bhd. * ✓ COMPLETED 5 UMW Coating Technologies (Tianjin) Co. Ltd. * ✓ Executed SPA, awaiting authorities approval

6 Arabian Drilling Services LLC * ✓ Ceased operations, finalisation of disposal of assets

7 United Seamless Tubulaar Pvt. Ltd. ✓ Ceased operations, under receivership and to proceed with disposal of assets

8 Oil Country Tubular Limited ✓ Ongoing disposal onto the open market

9 Jaybee Drilling Pvt. Ltd. * 10 UMW Sher (L) Ltd. * 11 Shanghai BSW Petro-pipe Co. Ltd. 12 Zhongyou BSS (Qinhuangdoa) Petropipe Co. Ltd. 13 Tubulars International Pte. Ltd. 14 UMW Oilfield International (M) Sdn. Bhd. / Active negotiations UMW Oilfield International (L) Ltd. * 15 Jiangshu Tube-Cote Shuguang Coating Co. Ltd. 16 Shanghai Tube-Cote Petroleum Pipe Coating Co. Ltd.

* subsidiary

UMW HOLDINGS BERHAD 25 ANALYSIS OF RESULTS BEFORE AND AFTER WRITE-DOWNS

RM'mil FY 2017 FY 2016 Continuing Operations Automotive 446.1 496.9 Equipment 152.7 148.6 Manufacturing & Engineering (17.7) 24.6 Others (49.8) (57.2) 531.3 612.9 Write - downs - Equipmet (10.9) (3.0) - Others (253.9) (892.0) (264.8) (895.0)

Profit / (Loss) from Continuing Operations 266.6 (282.1)

Discontinued Operations - Oil & Gas (Listed) (156.3) (401.3) - Oil & Gas (UnListed) (120.6) (102.8) (276.9) (504.1) Write - downs - Oil & Gas (Listed) (126.9) (780.0) - Oil & Gas (UnListed) (399.6) (564.0) (526.5) (1,344.0)

Profit / (Loss) from Discontinued Operations (803.4) (1,848.1) Total profit before tax for the Group (536.8) (2,130.2) PATAMI (640.6) (1,658.0)

UMW HOLDINGS BERHAD 26 Past Performance Data

27 SELECTED GROUP FINANCIAL HIGHLIGHTS

1 2 ▪ Revenue (RM million) ▪ PATAMI (RM million)

15,817 994 14,933 14,442 13,536 13,952 653 652 12,770 12,820 566 527 486 11,067 382 10,721 10,437*

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (37)

(641)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(1,658)

3 4 ▪ Gross Dividend Per Share of RM0.50 each (sen) ▪ Dividend Payout Ratio (%)

>100.0 50.0 44.0 75.8 75.2 78.7 76.1 37.0 41.0 30.0 31.0 57.7 59.0 58.8 20.0 20.0 0.0 0.0 0.0 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 March 08 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Share Split from RM1.00 to RM0.50 each

*Restated

UMW HOLDINGS BERHAD 28 Looking Ahead

UMW HOLDINGS BERHAD 29 OUR BROAD STRATEGY Focusing on mid to long term strategic initiatives to enhance growth Optimising our profitability and growth – Continued focus on our 01 three core businesses and monetising long held Digitize and digitalize assets – the Group’s business strategy is 02 aligned with digital strategy – IoT like initiatives across our operations 03

Building capability & capacity – Group Human Resource transformation initiatives

UMW HOLDINGS BERHAD 30 AUTOMOTIVE STRATEGY Strengthening our market position

o Second plant – located in Bukit Raja, Klang Value Drivers o Localisation Boost capacity and o Strategic location capability o High automation More exciting new CKD o Focus on passenger vehicles and EEV models segment o Plant & land size - 670,000 m² Increase local content o Total Investment – RM1.8 billion o Annual Capacity - 50,000 units (initial) o Expected to start operations in early 2019 Competitive pricing

Meeting market expectations on EEV

UMW HOLDINGS BERHAD 31 EQUIPMENT STRATEGY To meet new market expectations while leveraging on the expertise of our partners

Heavy Equipment o Leveraging on our partnership with Komatsu o Repositioning our heavy equipment business to focus on other more urbanised sectors such as construction

Industrial Equipment o Bringing other products into the existing regional network o Leveraging on Internet of Things (IoT) for enhancing product offering o Enhancing fleet management / rental business

UMW HOLDINGS BERHAD 32 M&E STRATEGY Strategic transformation focusing on HVM with Aerospace as catalyst Potential opportunities in HVM space

High End Electronics Industrial Automation Aerospace Advance Land Entry Point Transportation

Enable And HVM in Beyond…

Energy Medical Devices

UMW HOLDINGS BERHAD 33 MONETISING OUR LAND ASSETS

o Serendah Land – 861 acres. o Plan to develop this into a High Value Manufacturing Park focusing on industrial. o Signed an MoU with MIDA to collaborate on the park’s development. o Working with Invest Selangor and MATRADE. o Part of the land currently housed the Rolls-Royce fan case project which acts as a catalyst for further development of Serendah

UMW Aerospace Sdn. Bhd (24 acres)

T7 Kilgour Sdn Bhd (2 acres)

LOW-DENSITY RESIDENTIAL COMMUNITY AEROSPACE COMMERCIAL CORE WITH INTEGRATED HIGH-END, LOW-DENSITY INDUSTRY CONNECTION TO LANDSCAPE RESIDENTIAL COMMUNITY CLUSTER CLUSTER

MIXED-USE & RESIDENTIAL LOOP MEDIUM-DENSITY AFFORDABLE HOUSING ROAD COMMUNITY

UMW HOLDINGS BERHAD 34 THANK YOU

Roza Shahnaz Omar S. Vikneshwaran Director, Group Strategy Head, Investor, Media Relations & Sustainability UMW Corporation Sdn. Bhd. Email: [email protected] Telephone: +603 20252104

Corporate Portal www.umw.com.my

This material is proprietary and is prepared specifically for the recipient’s reference. The information contained herein is not to be distributed without the consent of UMW Holdings Berhad. Any recommendation or views contained in this document do not have regard to specific investment objectives, financial situation and the particular needs of any specific audience. The content furthermore is believed to be correct at the time of the issue of this document, and is not and should not be construed as an offer or a solicitation of any offer to buy or sell any securities. Nor does this document purport to contain all the information a prospective investor may require.