UMW Holdings Berhad CORPORATE PRESENTATION May 2015 UMW MILESTONES

1917 1960s 1970 1980s 1990s 2000s 2010s

- UMW Oil & Gas - Oil & Gas Corporation Division Berhad listed - Awarded established as on Bursa vehicle franchise UMW’s 4th core in - United Motor in ’82 business in ‘02; ‘13 Works (Malaysia) - Permodalan - Largest - UMW is the official - Awarded Komatsu Holdings Berhad Nasional Berhad shareholder in distributor heavy equipment listed on stock became major the 2nd national in ’06 distributorship in exchange shareholder in project, - Rebranding of ’65 ’87 , UMW in ‘08 - Secured the with Toyota Forklift Motor Co. Ltd. as franchise in ’65 the technology - Chia Yee Soh provider in ’93 founded a small family business in Singapore

2 SHAREHOLDING STRUCTURE As At 29 May 2015

Permodalan Nasional Berhad (PNB)/ PNB Managed Unit Trust Funds, 52.66%

Foreign Shareholders, 16.75%

Other Local Shareholders, 14.44%

Employees Provident Fund PNB and EPF shareholdings are based on Board, 16.15% * direct interest and deemed interest

Market Capitalisation at RM10.72 per share (as at 29 May 2015) RM12.5 billion

Total Number Of Shares 1,168,293,932 Component Of FTSE Bursa Malaysia KLCI (FBMKLCI) Bursa Malaysia Listing Sector Main Market, Consumer Products Bloomberg code UMWH:MK

3 BUSINESS STRUCTURE

Automotive Equipment Oil & Gas Manufacturing & Engineering

UMW TOYOTA MOTOR HEAVY EQUIPMENT UMW OIL & GAS LUBRICANTS & FLUIDS • Lexus • Komatsu CORPORATION BERHAD • Pennzoil • Toyota • Bomag (55.72% subsidiary) • Repsol • Schwing • Grantt PERUSAHAAN • Manitou DRILLING AND OILFIELD • GEP Fluids & Coolants OTOMOBIL • Rosenbauer SERVICES KEDUA • CASE SHOCK ABSORBERS • Perodua • Massey Ferguson ONSHORE DRILLING /HYDRAULIC POWER- • LS STEERING PUMPS AND MANUFACTURING OF SYSTEMS INDUSTRIAL OCTG & LINE PIPES • KYB EQUIPMENT • Toyota FABRICATION OF OIL & AUTO COMPONENTS • Raymond GAS AND OTHER • Filtration Products • Aichi STRUCTURES • Plastic Injection • Tokai • Metal Stamping • Tennant SUPPLY OF OILFIELD • DENSO Spark Plugs & • GS Yuasa PRODUCTS Wiper Blades • BT • GEP Filters & Brake • Fulmen Pads

MARINE & POWER EQUIPMENT • CompAir • Honda • Mitsubishi • Cameron 5 DOMESTIC & INTERNATIONAL PRESENCE Extensive Network – 13 countries

Malaysia Branches Dealerships Automotive Equipment UMW Toyota Motor 41 65 Manufacturing & Engineering Sdn. Bhd. Turkmenistan Myanmar Oil & Gas Topmark 5 - (Division of UMW Toyota)

Perusahaan Otomobil Kedua Sdn. Bhd. 41 142 (Associate)

UMW Industries (1985) 16 - Sdn. Bhd. China Taiwan UMW Industrial Power 8 - Sdn. Bhd. Vietnam

UMW (East Malaysia) Malaysia Sdn. Bhd. (Sabah & 9 - Sarawak) Papua New Guinea UMW Equipment 5 - Singapore Sdn. Bhd. Australia Toyota Capital Malaysia 5 - Sdn. Bhd. (Associate) Indonesia

Total 126 202 Oman India Thailand

Total Staff Strength (as of May 2015) 13,315

5 AUTOMOTIVE Operations UMW AUTOMOTIVE DIVISION

51% 38%

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

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

100% Automotive Industries Manufacturer and 49% Perodua Auto supplier of exhaust Investment holding Sdn. Bhd. systems 51% Corporation Sdn. Bhd.

51% 65% Toyota Boshoku 49% Manufacturer Perodua Manufacturing Manufacturer and assembler UMW Sdn. Bhd. of car seats of motor vehicles Sdn. Bhd.

30% UMW Toyotsu Motors Sales and service of 49% Manufacturer and dealer in component Toyota and Lexus Perodua Engine parts including engines, couplings and Sdn. Bhd. vehicles and parts Manufacturing Sdn. Bhd. components

30% Hire purchase 30% Toyota Capital Malaysia Manufacture complete door financing of Toyota, Ingress Technologies assemblies and press parts Sdn. Bhd. Lexus and Perodua customers Sdn. Bhd.

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

TIV % Change Over Previous Year RHS

Total Industry Volume – Unit Sales LHS

1,200,000 40% 20.2% 13.3% 12.5% 12.7% 20% 1,000,000 4.6% 4.5% -0.7% -2.0% -0.8% 1.6% -6.7% -11.1% 0% 800,000 655,793 666,465 627,753 605,156 600,123 -20% 600,000 552,316 548,115 536,905 487,605 490,768 487,176 -40% 405,745 400,000 -60%

200,000 -80% 0 -100% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

• The TIV for 2014 closed at 666,465 units. MAA’s forecast TIV for 2014 was 680,000 units. • Target for 2015 is 680,000 units (+2% growth). • Lower sales in 2011 was due to the supply-chain disruption caused by the earthquake and tsunami in Japan and the floods in Thailand.

8 LEXUS & TOYOTA

Toyota Market Share Of TIV RHS Toyota Unit Sales LHS 200,000 18.6% 20% 17.0% 16.5% 16.7% 16.9% 15.6% 18% 15.3% 15.2% 14.8% 16% 150,000 14.1% 14%

10.6% 106,622 103,636 12% 9.9% 101,839 100,000 91,003 91,990 88,662 92,521 10% 81,808 82,188 82,089 8% 51,700 6% 50,000 40,239 4% 2% 0 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

• Official Lexus distributor in Malaysia since 2006. • Vios was our top selling model in 2014 with 41% of total sales. Hilux was second with 25%. • The new Camry and Camry Hybrid was launched on 2 April 2015. • Target for 2015 is 90,000 units.

9 PERODUA

Perodua Market Share Of TIV RHS

Perodua Unit Sales LHS

350,000 40% 33.3% 300,000 31.7% 30.6% 30.5% 31.1% 31.2% 30.0% 30.1% 30.1% 29.3% 30% 250,000 25.0% 25.3% 188,641 189,137 196,071 195,579 200,000 179,989 167,393 166,736 155,419 162,152 20% 139,680 150,000 124,008 121,804

100,000 10% 50,000

0 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 • Perodua maintained the No. 1 position in overall market share since 2006 • Currently exporting to six countries, namely, Indonesia, Singapore, , , and . • Malaysia’s first energy-efficient vehicle, , was launched on 15 September 2014. • Target for 2015 is 208,000 units.

10 UMW GROUP’S MARKET SHARE Units & Market Share (%) In 2014 Brand 2014 2013 Market Units Market Units Share % Share %

Proton 17.4 115,783 21.2 138,753 Honda 11.6 77,495 7.9 51,544 Nissan 7.0 46,352 8.1 53,156 Hyundai, Kia 2.5 16,886 2.5 16,537 1.3 8,916 1.5 9,619 Others 15.3 101,818 14.9 97,592 Total 55.1 367,250 56.0 367,201 2013 Perodua 196,071 195,579 29.9% 29.3%

2013 UMW Toyota 92,521 103,636 14.1% 15.6% Others 2013 367,250 367,201 55.1% 56.0%

• UMW companies sold 299,215 units in 2014 with a market share of 45%.

11 AUTOMOTIVE DIVISION Models and Price Range

Toyota Avanza Lexus LS 600hL

8 models 200 300 400 500 600 700 800 900 1,000 1,100 RM242k-1.09m

11 models RM 60 80 100 120 140 160 180 RM65k-393k ‘000

3 models 20 40 60 80 RM24.6k-65k

Perodua Perodua Top Selling Models Axia Alza Perodua - Myvi

Toyota - Vios OIL & GAS Operations UMW OIL & GAS CORPORATION BERHAD (55.72% subsidiary)

Upstream

• Offshore Drilling • Workover • Oilfield Services

14 Offshore Drilling UMW DRILLING CO/UMW JDC DRILLING

Company • UMW Drilling co-owns semi-submersible drilling rig, NAGA 1, on 50:50 venture with Japan Drilling Company; since 2005. • Drilling depth of 30,000 feet • Operating water depth of 985 feet

Customer • Carigali Sdn. Bhd. since 2005.

Status • The current contract duration is for five (5) years which commenced on 13th November 2010 and ends on 12th November 2015, valued at USD250 million. • During the period, rig upgrading works were carried out for a duration of 281 days from 13th April 2012 until 18th January 2013. In view of this, the current contract expiry date is therefore extended to 19th August 2016, which represents an additional 281 days, as per the duration of the rig upgrading works. The terms and conditions of the contract however remained the same. • In addition, Petronas Carigali has awarded a contract extension for a further period of two (2) years commencing 20th August 2016, valued at USD130 million.

NAGA 1

15 UMW OIL & GAS CORPORATION BERHAD - Malaysia’s only owner-operator of jack-up drilling rigs.

JACK-UP CUSTOMER CONTRACT VALUE CONTRACT DURATION ESTIMATED DRILLING (USD) EXPIRY RIG

UMW PetroVietnam Drilling & Well Services 62 million 1 year April 2015 NAGA 2 Corp (PV Drilling)

UMW Japan Vietnam Petroleum Company 105 million 2 year May 2015 NAGA 3

UMW PETRONAS Carigali Sdn. Bhd. 157.68 million 3 years April 2016 NAGA 4 2-year option for renewal. April 2018

UMW PTTEP International Limited, Thailand - 51.3 million Five firm wells June 2015 NAGA 5 the rig is operating at offshore Myanmar (about 250 days)

PetroVietnam Drilling & Well Services 18.7 million About 100 days October 2015 Corp (PV Drilling) for end-client Korea National Oil Corporation

UMW PetroVietnam Drilling & Well Services 46.5 million Four firm wells June 2015 NAGA 6 Corp (PV Drilling) (about 250 days)

- Working on optional wells October 2015

UMW Bidding for contracts NAGA 7

UMW Delivery : September 2015 NAGA 8

16 Workover UMW PETRODRIL (MALAYSIA) SDN BHD

Company • Provides workover related services with hydraulic workover units (HWU) • Sole Malaysian owner and operator of HWUs and a PETRONAS licensed HWU services provider.

Customer • Petronas Carigali Sdn. Bhd. • Petrovietnam Drilling & Well Services Corp (PV Drilling) • PTTEP International Limited, Thailand

Status • Currently owns 5 HWUs. • HWUs are operating in Malaysia, Vietnam and Thailand.

17 Oilfield Services OCTG Threading, Inspection & Repair Services UMW-OG’s OCTG threading, inspection and repair service facilities in Malaysia, Thailand, China and Turkmenistan focus on premium connections. UMW Oilpipe Services Sdn Bhd UOT (Thailand) Limited

 2 plants located in Labuan offering premium  Located in Songkhla and Sattahip, Thailand OCTG threading, inspection and repair  Focus on repair of damaged threaded pipes services and the threading of OCTG and accessories  Owner of quality oilfield services assets,  Number of threaded joints from 2010 to 2012 including a threading facility in Malaysia with 22 CNC lathe machines  Was the first threading plant in Malaysia to be approved in API Q1 and API 5CT specifications  Number of threaded joints from 2010 to 17,208 2012: 17,024 20,942 21,000 13,672 16,505

2010 2011 2012 2010 2011 2012 UMW Oilfield Services (Tianjin) Co Ltd UMW Oilpipe Services (Turkmenistan) Ltd

 Located in Tianjian, China  Located in Turkmenbashy, Turkmenistan  ‘One-stop shop’ multi premium connection  Provides machine shop services for repair threading base, inspection and related and threading of casing, tubing and oilfield workshop services accessories, tubular inspection and  Received appreciation letter from hardbanding of drill pipes and collars Schlumberger China and awarded one of the  Mainly supports PETRONAS’ subsidiary in ‘best supplier’ under Schlumberger’s global Turkmenistan’s offshore fields in the supplier system in 2012 Caspian Sea.  Unit threaded (connections) from 2010 to 2012 17,299 9,622 11,696

2010 2011 2012 UMW-OG’s operations are pan-Asian, with high quality assets characterised by high precision and accuracy capabilities EQUIPMENT Operations EQUIPMENT DIVISION

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 beverages, material handling and logistics

20 Heavy Equipment KOMATSU FRANCHISE

Myanmar Malaysia Singapore Papua New Guinea

• Komatsu franchise in Malaysia, Singapore, Myanmar and Papua New Guinea • Market share range from 20% to 43%. • Has strong presence in Myanmar, supplying equipment to the jade mining and resource mining sectors. • August 2014 – Secured contract worth RM200 million to supply more than 60 units of Komatsu equipment in Myanmar.

21 Industrial Equipment TOYOTA FORKLIFT FRANCHISE

China Shanghai, Zhejiang Vietnam Malaysia Singapore

• Strong market leadership position • 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. • Toyota Forklift – UMW is one of the Top 5 Distributors in the world. • Toyota forklift maintained its 50% market share in Malaysia’s material handling equipment business. • No. 1 position in Malaysia since 1972. • Have ventured into leasing of Toyota forklifts.

22 MANUFACTURING & ENGINEERING Operations KEY PRODUCTS

LUBRICANTS

Lubricants Fluids & Lubricants & Fluids Chemicals & Fluids (China) AUTO COMPONENTS

Shock Absorbers, Auto Auto Hydraulic Power- Components Components Steering Pumps and Systems

24 Fluid & Chemicals In China LUBRICANT BLENDING PLANT

• JV with Dah Chong Hong (Motor Service Centre) Limited to develop the business of manufacturing/processing of lubricants (the wholly-owned subsidiary of Dah Chong Hong Holdings Ltd, a company listed on the HKEx, and principally involved in the motor and motor-related China 中国 business, foods and consumer products, as well as logistics services) • Plant is in Xinhui, Guangdong Province Guangdong • Started operations in January 2011 Province • Production capacity of 30,000 tonnes (1 shift) and 50,000 tonnes (2 shifts) • March 2013 – received TS16949 certification – the International Quality Management Standard specifically established by the . • Sole supplier of premium lubricants for First Automobile Works of China (FAW) which assembles under , Red Flag and Besturn brand marques. • The company also supplies to Wurth and Blue Star.

25 Auto Components In India MANUFACTURE OF COMPONENTS

• UMW Dongshin Motech is a major original equipment manufacturer (OEM) for stamped automotive body parts for car manufacturers in India. • Sathya Auto manufactures mechanical jacks, India radiator caps and sheet metal components.

• Castwel Autoparts manufactures aluminium gravity die castings, aluminium alloys, water pump body, Chennai cover and brackets. Pune (Tamil Nadu) (Maharashtra) • Our customers in India include , Volkswagen, Tata, Hyundai. • July 2014 – Announced proposal to dispose these companies; expected to be completed by 15 July 2015.

26 Manufacturing & Engineering KYB-UMW MALAYSIA SDN. BHD.

• Shareholding structure. - UMW Corporation Sdn. Bhd. 41.2% - KYB Corporation, Japan 33.4% - UMW Toyota Motor Sdn. Bhd. 21.4% - Toyota Tsusho (M) Sdn. Bhd. 4.0% • Incorporated in June 1983. • Both OEM and REM supplier. • Currently exports to 27 countries.

27 FINANCIAL HIGHLIGHTS 10-YEAR GROUP FINANCIAL HIGHLIGHTS

AUTOMOTIVE EQUIPMENT M & E OIL & GAS

Revenue Profit Before Taxation (RM million) (RM million)

2,020 15,817 14,933 13,952 13,536 1,622 12,770 12,820

1,436 1,365 10,721 1,277 1,313 9,869 9,950 9,976

856 847 754 658

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

29 10-YEAR GROUP FINANCIAL HIGHLIGHTS

AUTOMOTIVE EQUIPMENT M & E OIL & GAS

Total Assets Shareholders’ Funds 6,581 (RM million) (RM million) 6,290

16,520

14,595 4,848

4,249 11,491 4,027 3,774 10,541 10,024 3,522 8,826 3,130 7,828 2,560 2,342 6,491 2,131 5,721 5,103

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

30 Key Performance Indicators – Dividend Policy ANNUAL DIVIDEND PAYOUT, 50% OF PROFIT NET OF UNREALISED GAINS

75.8 75.2 78.7 76.1 57.7 59.0 58.8 48.8 50.3 50.8 Target 50%

Payout Ratio (%)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

50.0 44.0 37.0 41.0 30.0 30.0 31.0 19.0 20.5 20.0 Gross Dividend Per Share Of RM0.50 Each (sen) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

March 08 Share Split from RM1.00 to RM0.50 each

31 Key Performance Indicators – Target ROSF RETURN ON SHAREHOLDERS’ FUNDS

21.9%

16.5% 17.0%

13.5% 12.7% 12.5% 11.7% 11.7% 10.5% 10.1% 10% 10% 10% 10% 10% 10%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

• Exceeded minimum annual return on shareholders’ funds • In 2009, target was 10%. Achieved 10.5% • In 2010, target was 10%. Achieved 13.5% • In 2011, target was 10%. Achieved 11.7% • In 2012, target was 10%. Achieved 21.9% • In 2013, target was 10%, Achieved 11.7% • In 2014, target was 10%, Achieved 10.1%

‘AAA’ CORPORATE CREDIT RATING

• On 20 May 2015, RAM Rating Services Berhad (RAM) has reaffirmed the AAA ratings of UMW Holdings Berhad

33 THANK YOU

Dr Wafi Nazrin Abdul Hamid S. Vikneshwaran

Executive Director Head, Investor & Media Relations

Group Management Services Email: [email protected]

UMW Corporation Telephone: +603 5163 5000

Email: [email protected]

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.