THE , Expansion and Modernization of Road Infrastructure II by

PLUS EXPRESSWAYS BERHAD 13 September 2011 COUNTRY OVERVIEW

COMPANY OVERVIEW

MAJOR PROGRAM/ PROJECT IN THE COUNTRY INDUSTRY CHALLENGES

PLUS North-South Expressway, bound

2 Country Overview

Land area: 329,847 square kilometres (127,350 sq mi) separated by the South China Sea into two regions, Peninsular and Malaysian Borneo (slightly smaller than the size of Germany and slightly bigger than Italy).

Land borders: Thailand, , and Brunei

Population 2010: 27,565,821 (Department of Statistics Malaysia)

GDP (PPP) : USD442.01 billion - 2010 est (Source: IMF)

GDP per capita : USD8,620 - 2010 est (Source: IMF)

3 GDP Growth 2010: 7.2% Country Overview

MALAYSIA GDP GROWTH 2000-2011 (est) POPULATION IN MALAYSIA

10.0% 8.3% 30.0 27.1 27.6 7.1% 7.2% 25.0 8.0% 6.3% 5.3% 25.0 22.3 5.2% 6.0% 4.2% 4.6% 19.6 20.0 17.2 5.9% 15.0 4.0% 5.0% 13.2 15.0 11.7 2.0% 10.3 Million 10.0 GDP Growth GDP 0.0% 0.4% 5.0 -2.0% -1.7% 0.0 -4.0%

NEW VEHICLES REGISTERED IN MALAYSIA NUMBER OF TOURIST ARRIVALS IN MALAYSIA

30.0 600 552 548 523 23.6 491 503 25.0 20.9 435 488 487 500 24.6 396 406 20.0 22.0 400 343 15.7 15.0 13.2 17.4

300 16.4 Million 200 10.0 12.7 10.2 10.5 Thousand Vehicles Thousand 100 5.0 0 0.0 COUNTRY OVERVIEW

COMPANY OVERVIEW

MAJOR PROGRAM/ PROJECT IN THE COUNTRY INDUSTRY CHALLENGES

Persada PLUS, Corporate Office

5 Primary toll road operator in Malaysia

As at 12 May 2011 #

15.5% 100% r

38.5% Domestic

100% 100% 100% 100% 100% 100% 20% Projek Lebuhraya Expressway Linkedua Konsortium Lebuhraya PLUS Helicopter Utara-Selatan Berhad Lingkaran Tengah Sdn Butterworth-Kulim Services Sdn Touch ‘n Go (PLUS) Bhd (ELITE) (Malaysia) Berhad (KLBK) Sdn Bhd Bhd Sdn Bhd

North-South Expressway Malaysia-Singapore Butterworth-Kulim North-South Expressway Central Link Second Crossing Expressway 846 km Sdn Bhd 63 km 47 km 17 km

International 94%^ 49% 26% 55%

PLUS BKSP Toll Indu Navayuga Jetpur Somnath PT Lintas Marga Infrastructure Project Sedaya (Indonesia) Limited () Pte Ltd (India) Tollways Limited (India) Bhiwandi-Kalyan-Shil Padalur-Trichy Highway, Jetpur-Somnath Highway, Cikampek-Palimanan Phata Highway, India India India Expressway, Indonesia 21.6 km 38.6 km 127.6 km 116.0 km

# Khazanah Nasional Berhad is the investment holding arm of the Government of Malaysia, with investments in over 50 major companies in Malaysia and abroad. r UEM Group Berhad is Malaysia’s leading diversified infrastructure conglomerate with core business in expressways, engineering & construction, township/property development, and asset & facilities management . ^ PLUS Expressways holds 94.12% direct and indirect interest in PLUS BKSP via PLUS Kalyan (Mauritius) Private Limited. 6 Largest expressway operator in Malaysia & with more than 20 years of experience

. PLUS started operation in 1988 . Listed on Bursa Malaysia (Malaysian Stock Exchange) in 2002 . Backbone of Malaysian road transport system: BKE  Connects major industrial, commercial & transportation centres Northern region  Links major seaports and airports . States serviced by the NSE make up 81% of population PLUS and 89% of GDP in

Length Central region DOMESTIC PLUS North-South Expressway 846 km ELITE ELITE NSE Central Link 63 km LINKEDUA Malaysia-Singapore Second Crossing 47 km BKE Butterworth-Kulim Expresssway 17 km KL Southern region International 973 km Airport INTERNATIONAL BKSP Bhiwandi-Kalyan-Shil Phata Highway 22 km LINKEDUA INIPPL Padalur-Trichy Highway 39 km JSTL Jetpur-Somnath Highway (In progress) 127 km Open Toll System: Generic to city highways LMS Cikampek-Palimanan Expressway (In progress) 116 km Close Toll System: Generic to interurban highways TOTAL 1,277 km Ranks 6th among global toll road operators and controls 60% of the Malaysian toll roads market

Ranks no. 6 globally (largest in Asia) Owns 60% of Malaysian toll roads (by market capitalisation) in operation (by length - km)

CCR, Brazil 1 Abertis, Spain 2 Atlantia Spa, Italy 3 ARR, France 4 Others Transurban, Australia 5 40% PLUS 6 USD7.3 bn PLUS Jiangsu E., China 7 52% Jasa Marga, Indonesia 8 Shandong E, China 9 BKE 1% Zhejiang E., China 10 3% 0 2 4 6 8 10 12 14 Linkedua 4% USD’bn Elite Source : Bloomberg as at 16/08/2011

8 Business Results

PLUS TRAFFIC VOLUME GROWTH REVENUE MYR ‘mn 4.7% CAGR

12.8%

7.7% 7.1% 7.7% 6.0% 5.2% 4.9% 3.9% 2.3% 3,351 0.8% 1.6% 11.3% CAGR 3,179 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2,968

Traffic Growth % GDP Growth % 2,282 2,091 1,671 1,663 1,650 DIRECT OPERATING COST 1,581 1,220 1,153

25% 24% 22% 23% 23% 20% 20% 21% 21% 20% 21%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

CAGR PLUS (2000-2010): 9.7% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 9 Socio Economic Contribution to GDP Growth, Development of Tourism, New Township and Industry

Bandar Darul Aman GDP Growth

Black Forest Golf & Country Club Gurun Modenas States Before After Laguna Merbuk Auto City Kedah 4.8% 7.5% Pulau Pinang Kulim Hi Tech Juru Industrial Area Penang 5.4% 7.5%

Kamunting Bukit Merah Lake Town 3.9% 7.3% Lumut Perak Hi Tech Lost World of 5.6% 7.7% Cameron Highland Banjaran Hot Spring Negeri Sembilan 4.5% 7.1%

Sungkai Hot Spring Bukit Beruntung Melaka 3.9% 7.3% Rawang Rawang Country Homes 5.2% 7.7% Putra Mahkota Nilai Malaysia 4.7% Seremban 2 Source: Department Of Statistics Malaysia A Famosa TOURISM Perling NEW TOWNSHIP Tg. Pelepas Bandar Baru Uda Nusajaya INDUSTRY 10 Socio Economic Contribution to Employment Opportunities

Continuous 4,483 Training & COMPANY EMPLOYEES 925 Development Opportunities

572 > 5,500 Jobs STALL OPERATORS 97 Created

MAINTENANCE CONTRACTORS 350 >1,000 Job 15 Opportunities •

11 Evolution of Electronic Toll Collection (ETC) for operational efficiency 2015 & 2012 Beyond 2009 2003 1999 1998

1994 Implementation of Implementation of Smart Card system 1988 Touch ‘n Go as the (Vehicle Registration Introduction of only electronic toll Number) smart card collection system in electronic toll Malaysia Proposed implementation collection system Toll started at Trial Smart Card of Multi Lane Free Flow “Touch ‘n Go” North-South system (Vehicle (MLFF) Expressway – all Introduction of smart Registration cash payment card electronic toll Number) collection system Introduction of electronic “Smart Tag” toll collection system “PLUS Tag”

ETC penetration increased from 15% in 1999 to 60% in 2010 12 Issues in Implementing the Multi Lane Free Flow (“MLFF”)

LEGAL & ENFORCEMENT

• Inherent risks of leakage • Enforcement issues • Multiple agreements involving various stakeholders

TECHNOLOGY & OPERATION

• Smart Tag system not MLFF ready • Improvement of back end system

BUSINESS MODEL

• Funding of new system

CUSTOMER ACCEPTANCE

• Migration from cash payment

13 Evolution of Road Safety Measures 2015 & Rolling beyond Barrier 2011

2009 High Containment 2010 (TL 5) Bridge Railing Innovative road safety measures

Crash Cushion LED signs 2008 Flexible post 2007 Flashing Road Stud High Skid Resistance Rumble Strip 2001 2005 1990 1997 Escape Ramp 2m spacing Normal Containment guardrail Bridge Railing Wire Rope Barrier 4m spacing guardrail Median concrete NJB

14 Results and Investments on Road Safety

ACCIDENT RATE INVESTMENTS MADE FOR SAFETY FEATURES Per 100 Million Vehicle Km Travelled MYR ‘mn

90 70

60 80

70 50 70 63 63 63 40 59 60 55 55 53 51 30 50 47 46 20

40 10

30 -

Various measures and investments on road safety have reduced the accident rate over the years 15 COUNTRY OVERVIEW

COMPANY OVERVIEW

MAJOR PROGRAM/ PROJECT IN THE COUNTRY INDUSTRY CHALLENGES

Traffic Monitoring Centre at Corporate Office

16 The Malaysian Economic Plan

In one of the main 52 high-impact projects worth MYR63 billion have been thrust of the 10th Malaysian Economic identified for implementation in the 10th Malaysian Plan Plan (2011-2015), the Government of Malaysia has recognized the formation of smart and effective Several highway projects in the pipeline at an estimated partnerships cost of MYR19 billion (USD6.4 billion) between the public and private sectors (PPP) as a mean to facilitate the new Current Under Construction Under Planning economic transformation Road Network 135,569km 51 projects agenda. 12 projects Highway Network 1,722km 248km (6 projects)

17 COUNTRY OVERVIEW

COMPANY OVERVIEW

MAJOR PROGRAM/ PROJECT IN THE COUNTRY INDUSTRY CHALLENGES

Overhead Bridge Restaurant,

18 Industry Challenges

Public expectations on quality of highway services vs. willingness to pay

Stringent maintenance and safety requirements by authorities

Negative perception of toll increases amongst the public

Nationalization of expressways

Public / users attitude towards road safety

Competitive public tenders of toll roads – contractors’ aggressive bids (especially in India)

19 THANK YOU

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