CMS MANAGEMENT PRESENTATION

1 Disclaimer

This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other developments or companies, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events.

The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither Cahya Mata Sarawak Berhad (“CMSB”) or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation.

The past performance of CMSB is not indicative of the future performance of CMSB.

The value of shares in CMSB (“Shares”) and the income derived from them may fall as well as rise. Shares are not obligations of, deposits in, or guaranteed by, CMSB or any of its affiliates. An investment in Shares is subject to investment risks, including the possible loss of the principal amount invested.

2 28/04/2015 Today’s Presenters

Y Bhg Dato’ Richard Alexander John Curtis Group Managing Director

 Joined CMS in 2006 as GMD.  Non executive directorship positions include K&N Kenanga Holdings Bhd, Kenanga Investment Bank Bhd.  Bachelor of Law (LL.B.) Honours from Bristol University, UK, Sloan Fellow of London Business School, admitted and practised as a solicitor in England and Hong Kong.

Tuan Syed Hizam Bin Syed Mahmood Ezzularab Abdul- Moez Alsagoff Group Chief Financial Officer

 Joined CMS in 2005, appointed GM, Group Finance & Treasury at end 2005, Group CFO in September 2009.  Non executive directorship positions include KKB Engineering Berhad.  Bachelor of Science with Finance major and Economics minor, San José State University, California.

3 28/04/2015 Contents

Section 1 Sarawak Overview

Section 2 CMS Overview

Section 3 Business Overview

Section 4 Financial Highlights

Section 5 Corporate Social Responsibility & Governance

Section 6 Group Strategies & Going Forward

28/04/2015 4 Section 1 Sarawak Overview

28/04/2015 5 Area and Population

South China Sea

Sarawak

Malaysia Sarawak . Area: 330,250 Sq.Km . Area: 124,449 Sq.Km . Population: 28.5 Million . Population: 2.5 Million . Capital City: Kuala Lumpur . Capital City: Kuching 6 . Number Of State: 13 . Number Of Division: 11 About Sarawak and SCORE

• Location North-Western shore of Borneo Island • System of Parliamentary democracy with a contitutional monarch Government • Population About 2.5 million (with an average growth rate of 1.8%) • Ethnic Group Malays, Iban, Chinese, Bidayuh, Melanau,Orang Ulu,Indian and other indigenous groups • Climate Tropical: warm and sunny throughout the year. Sarawak Corridor of Renewable Energy (SCORE ) • Period 2008 – 2030 • Vision To be a Developed and Industrialised State • Launched by YAB Prime Minister on 11 February 2008 • Area Covered 70,708 (Central Region) (km2) • Corridor Authority Regional Corridor Development Authority (RECODA)

7

State Credit Rating

Standard Moody’s Ram Malaysia & Investors Rating Rating Poor’s Services Services Corp.

A- A3 AAA AAA

Stable Stable Strong Strong Outlook Outlook Outlook Outlook

8 5 Growth Nodes of SCORE

Limbang 4. PROPOSED ACCESS ROAD TO LIMBANG HEP Samalaju Lawas Heavy and Energy Baram Mukah Miri Smart City, Intensive Industries HEP, Oil Palm and Forest PlantationLIMBANG HEP Services Hub & SAMALAJU INDUSTRIAL PARK Beluru Eco-Tourism(150 MW) Long R&D 8. WATER SUPPLY TO 2. ACCESS ROAD 127KM TO SAMALAJU ( Phase 1 Stage 1) Lama 7. PROPOSED NEW MUKAH BARAM HEP Samalaju AIRPORT 9. WATER SUPPLY TO B1 : 16km SAMALAJU ( Phase 1 Stage 2) Baram 11. MUKAH WATER SUPPLY BARAM HEP (1000 MW) Bintulu BAKUN HEP Tanjung Manis 1. ACCESS ROAD 62KM TO Mukah (2,400 MW) Halal Hub Samarakan MURUM HEP

TG. MANIS HALAL HUB DEV’T Belaga MURUM HEP TG. MANIS TELECOM. Sangan – Sg. Anap 18km (990 MW) 6. SAMARAKAN/SANGAN/ NG. SIBU 10. TG MANIS WATER SUPPLY MERIT/KAPIT ACCESS ROAD 159KM 12. JALAN HAB HALAL TG MANIS SARIKEI Tunoh Tunoh TANJUNG Baleh bridge MANIS 5. PROPOSED ACCESS ROAD Kanowit KAPIT TO TUNOH Song KUCHING BETONG SAMARAHAN BALEH HEP Tunoh (1200 MW) Oil Palm and Forest

SRI AMAN Plantation, Agriculture 3. PROPOSED ACCESS ROAD and Eco-Tourism BATANG AI 73KM TO BALEH HEP HEP (100 MW) 9 Summary of Investment by Growth Nodes

No. of Investment Land Water Electricity Gas (mil. No. Growth Node Jobs Project (RM Bn) (ha) (MLD) (MW) scf/day)

1 Samalaju 27 44.5 17,009 2,400.3 127.4 3,923.0 14.9

2 Mukah 1 0.6 800 366.0 4.0 90.0 17.7

3 Tanjung Manis 3 2.3 1,852 1,709.0 3.7 61.0 0.0

4 Kidurung 1 2.6 500 30.0 0.0 10.0 0.0

Total 32 50.0 20,161 4,505.3 135.1 4,084.0 32.5

10 Industrial Plot Development Phasing Samalaju Industrial Park

2 Ph 1 (operational by 2014/2015) 1 1: Press Metal 2: Tokuyama 3: OM Materials

3 Ph 2 (2015 & beyond) 1: Sakura 4 2: Asia Advanced Materials 3: Pertama Ferroralloys 3 4: Malaysian Phosphate 7 5: Elkem 1 6: PMB Carbon 3 1 7: Indo Mall 2 2 8: Makmoni 4 1 Ph 3 (2017 & beyond) 5 1: Cosmos Petroleum 3 2: Leader Universal 3: Aimbest Steel 2 4 6 Ph 4 (post 2018) 1: Toho Titanium 2: SIMPAC Metalloy

11 3: Smelter Asia Private & Confidential PrivateBuilding & Confidential Sustainable & Vibrant Communities Samalaju Industrial Park • Centre for heavy & energy intensive industries • More than 8,000 ha of land • Located 62 km away from existing industrial town of Bintulu

Power Sub-Station

Water Treatment Plant Sewerage Treatment Plant

Samalaju Port Press Metal Workers Camp

OM Holding

Tokuyama

Asia Minerals Limited

Aerial View of Samalaju Industrial Park Section 2 CMS Overview

28/04/2015 13 Our Vision & Mission

STAKEHOLDERS \ Shareholders, Staff, Customers & Community

VISION

To be the PRIDE of Sarawak & Beyond

MISSION

P Producing Quality, On Spec & On Time R Respect & Integrity I Improving, Innovating & Investing in People D Delivering Sustainable Growth E Environmentally Conscious, Safe & Conducive Workplace

28/04/2015 14 Company Snapshot

Sarawak’s largest company in Key Statistics infrastructure development

Issued Shares: 1039.91 mn  One of Sarawak’s largest listed company, with Share Price: RM4.79 2,100 employees plus 1,562 in its 2 associate Market companies. metrics Market Cap: RM4,950.0 mn  Incorporated in 1974; Listed on KLSE in 1989. 10 Apr 15 Historical PER: 22.2 x  Formerly a construction conglomerate BUT PBV ratio: 2.57 x TODAY, CMS has a sustainable and profitable portfolio of businesses focussing on Sarawak Revenue: RM1,674mn and SCORE. Income PBT: RM341mn statement Basic EPS: 21.42 sen Substantial shareholders Shareholding (FYE Dec 2014) % (as of 1 April 2015) (‘000) DPS: 8.5 sen Majaharta Sdn Bhd 134,775 12.96 Total assets: RM2,800mn Lejla Taib 111,000 10.67 Balance Sheet S/holders’ funds: RM1,812mn Dato Sri Sulaiman AB Rahman Taib 88,395 8.50 (FYE Dec 2014) NA per share: RM1.74 Dato Sri Mahmud Abu Bekir Taib 88,200 8.48 Net Cash per share (of RM0.70 Sarawak Economic Development RM0.50 each) 80,896 7.78 Corporation ROE: 12.77% Key ratios (FYE Employees Provident Fund (KWSP) 79,917 7.68 Dec 2014) ROA: 7.90% Public float: c. 35% Current ratio: 2.51 x 15 Overview of Key Business Segments

Cement Construction Materials Construction & Road Samalaju Development Property Strategic & Trading Maintenance Development Investments

 Sole cement  Combined quarries  Involved in wide  Workers accommodation  Owns 2 large land banks Listed manufacturer in annual capacity of range of construction & related services. in Kuching.  25.07% stake in K&N Sarawak. 3.15m MT, & road maintenance  Planned new township &  2 major assets: Kenanga Holdings . commands 35% projects across  Installed capacity of service centre. market share for Sarawak. . 3,911-acre land bank  20% stake in KKB 1.75m MTpa vs. 2014 stone aggregates sold  25% investment in OMS in Petra Jaya being Engineering Bhd. projected demand of  Maintains in Sarawak. focuses on developing a developed into a approximately: 1.71m MT. manganese and ferro riverine township  Supply 60-70% of called Bandar Baru  Sole manufacturer of . 680 km of Federal alloy smelter. Unlisted Sarawak’s market for Samariang; clinker in Sarawak. roads. high quality premix &  40% investment in MPA  . 199-acre land bank in CMS Opus  Clinker capacity of bitumen emulsion. . 5,400 km of State Sarawak focuses on Muara Tebas being  Tunku Putra School 0.88m MTpa, roads. developing an integrated  Manufactures steel developed into Phosphate complex drawn wires & wire Kuching ‘s new CBD, mesh. called The Isthmus. Strong growth Core divisions generating bulk of group revenue and earnings, will Hidden gem to be Future growth driver potential with value continue to grow in tandem with Sarawak’s growth story unlocked added by CMS

Profitable businesses focus on Sarawak & SCORE development 16 Experienced Management with Proven Track Record

Centre Key Business Divisions

Goh Chii Bing, ED/CEO of Cement Division covering Datuk Syed Ahmad Alwee Alsree, Group cement, clinker and concrete products including Executive Director & CMS nominee Industrialised Building Systems (23 years in CMS). representative on K&N Kenanga, KKB & OM Sarawak (11 years in CMS). Dato’ Isaac Lugun, CEO of Samalaju Development Division covering strategic investments in SCORE Dato’ Richard Alexander John Curtis, Group (including OM Sarawak), provision of workers camp Managing Director & CMS nominee services in SCORE and development of the new representative on K&N Kenanga (9 years in Samalaju township (19 years in CMS). CMS). Chong Swee Sin, CEO of Construction Materials & Trading Division covering the quarrying of stones, manufacturing of steel drawn wires and mesh, the Tuan Syed Hizam Alsagoff, Group Chief supply of premix and the provision of related grading, Financial Officer & CMS nominee representative delivery and laying services (24 years in CMS). on KKB Engineering and on OM Sarawak (10 years in CMS). Lim Jit Yaw, CEO of the Construction & Road Maintenance Division covering the maintenance of 5000km +/- of State roads and 680km of the State’s Federal roads as well as being an established construction company undertaking a wide variety of Key management team consists of members projects from parliament buildings to power stations (9 years in CMS). with an average of 13.5 years experience in CMS Group and an average of 28 years total Vincent Kueh Hoi Chuang, ED/CEO of the Property working experience to spearhead the Group Development Division which covers all CMS’ forward! landbanks at Bandar Samariang, The Isthmus, other locations in Kuching and across Sarawak. (3 years in CMS) 28/04/2015 17 Corporate Milestones

 OM  Disposal of CMS Materials Roads and  Established as (Sarawak)  Pavement to UBG  Signed EPC Cement Adopted current Sdn Bhd name. Bhd. ground agreement for Manufacturers  Disposal  Acquired  Acquired 20% stake breaking new cement Sarawak.  Listed on of UBG RHB Bhd in KKB Engineering and signing grinding plant KLSE. Bhd. Bhd. of PPA

1974 1978 1989 1994 1996 2001 2002 2007 2008 2009 2010 2011 2012 2013 2014

 Rapid business  Restructuring of  Signed JVA  Commenced  Disposed  Re-acquired expansions via financial  with MPA to manufacturing RHB Bhd for Ceased CMS Roads acquisition of services develop a Ordinary Portland RM2.25b. operation and infrastructure business. RM1.04b Cement at of loss Pavement. related phosphate Sarawak’s 1st  CMS’ futures & making IT businesses. plant. grinding plant. stockbroking companies  Diversification businesses . into new merged with businesses. K&N’s in exchange for Rationalisation of businesses to focus on key shares in K&N. competencies in Sarawak & SCORE

28/04/2015 18 Share Price Performance

High Low

2014 RM 4.72 RM 1.47 2015 RM 4.79 RM 3.87 28/04/2015 19

Section 3 Business Overview

28/04/2015 20 1. Cement Division

 Largest group PBT driver (33% of revenue; 35% of Cement 600 523 515 548 PBT in FY2014). 445 400

 Sole cement & clinker manufacturer in Sarawak. 400 million  Well positioned to leverage on increased 200 120 80 101 66 97 construction activities in the state. RM 0 2010 2011 2012 2013 2014 Revenue PBT

Cement Clinker Concrete Products

 Sarawak’s sole cement manufacturer with  Sarawak’s sole clinker manufacturer  Leading manufacturer of pre-cast a 1.75m Mtpa capacity, exceeds 2013 with reserves of 50+ years. concrete products and ready mix supplier demand of 1.67m MT.  Sole 0.88m MTpa plant is currently fully  70k MTpa facility for concrete products,  78% utilsation rate from 2009 – 2011, utilised. running at 50-60% utilisation rate. expected to run at 90+% capacity in 2012 – 2015.  Upgraded plant runs on cheaper coal  75k MTpa IBS plant with an 82% utilisation alongside a 10+% capacity expansion. rate.  Future plans: To setup a 4000T silo and refurbish jetty at Pending plant. To build a  Future plans: Assess option of 2nd clinker  Provides installation services for IBS new 1m MTpa plant in Mambong by 1Q line for total self sufficiency and marginal products exports. 2016 to meet increasing demand. Also to  Future plans: Increase IBS and concrete add a packing machine . products. Possible second IBS plant and a permanent ready-mix plant in Samalaju 21 Cement Supply & Demand in Sarawak

 Local demand to outgrow local cement production between 2012 – 2014 where the existing plants are expected to run close to maximum capacity (c.90%+).  Local production expected to meet local demand in 2016 with the new Mambong plant coming on stream.

370 Average Cement Retail Selling Price NOTES 360 1) All cement imports were (& will continue to be) by CMS Cement 350

with negligible profit contribution. 2) Production assumes the new Mambong mill comes on stream by 340 1Q 2016. 330 3) Sales projections are based on recent revisions following demand MT per RM levels in 2014 & cement usage updates for major projects, 320 especially dams. 310 4) Cement exports are on a token scale to Kalimantan & Sabah, though long term Kalimantan has potential to grow due to on-going 300 cement shortages. 2008 2009 2010 2011 2012 2013 2014 Kuching Bintulu Miri

28/04/2015 22 2. Construction Materials & Trading Construction Materials & Trading 800  One of the core revenue and earnings 599 drivers. 600 393  Accounted for 36% of group revenue and 400 274 281 222 22% of earnings in FY2014. RM million 200 76 37 25 41 55  Complementing cement, construction and 0 property development divisions. 2010 2011 2012 2013 2014 Revenue PBT

Quarries Premix Wires & Trading

Typical plant

Sebanyis Quarry Pulled wires  5 quarries in Kuching with licences of up to  8 plants in Kuching, Sarikei, Sibu, Miri, Wires 20 years. Bintulu and Limbang to manufacture,  One 5,500 MTpa plant manufacturing steel deliver and lay Premix (asphaltic concrete), wires and wire mesh; Utilisation rate: 80+%;  3.15m MTpa of rated capacity, or an bitumen emulsion & cutback bitumen for Market share: 20% equivalent 35% market share. use in roads and airport runways.  Rated Capacity: 5,500 MTpa  In progress: Production capacity at Sibanyis  Capacity: 2 plants have rated capacities of to increase by 50% to 900,000 MT per  Future plans: Upgrade its Machines in 2015 250 MTph, 2 of 150 MTph, 2 of 100 MTph or annum by 2Q 2015. to improve efficiency and productivity. below and 1 mobile plant with capacity of  Future plans: Identify potential quarries in 100 MTph. Market share of 60-70%. Trading arm the northern region and develop additional  Trades as agent / distributor;  Future plans: Purchase two more 150 MTph wharf facilities to improve transportation. mobile premix plants to meet the increasing  Range of water management products, demand for premix in Sarawak; new construction materials & systems, road surfacing technologies. management products, building protection 28/04/2015 systems, petroleum products and others 23 28/04/2015 3. Construction & Road Maintenance

400 Construction & Road Maintenance 364 Undertakes construction, road & infrastructure

300 289 projects (including specialist pavement laying). 235 185 Holding concessions till 2017-2018 to maintain 200 95 680km approx of the Federal roads and RM million 81 84 100 75 69 5,400km of the State roads. 40  0 Original role as a “cartel” breaker has expired 2010 2011 2012 2013 2014 and now following new strategies: Revenue PBT • bid in consortiums to harness multiple Note: Included in 2011 a gain on acquisition of RM11.42mn. competencies and to manage risks; and • Targets smaller scale non tendered road works. • Focuses on niche construction projects e.g. construction and water projects Future plans: To ensure the 2 key PBT anchors Borneo Convention Centre Kuching namely the State & Federal Road Concession contracts are renewed & expanded in scale/scope.

Jalan Mulukun, Kapit Road repairs Strong recurring income from the road maintenance concessions. 24 4. Property Development

180 166 Property Development 160 140 114 120 103 100 75 80 60 60RM million 46 31 40 24 20 2 3 0 2010 2011 2012 2013 2014

Revenue PBT

 Owns 2 large Kuching land banks & other small parcels (5,600 acres in total)

 Strong potential for long term sustainable growth with ongoing steady land sales to underpin profits and to catalyse development of remaining parcels.

Potential growth to be unlocked from the vast undervalued development land bank 25 Development of Landbanks in Kuching, 2013 - 2018 % Acres Land Sales (2013 – Est. GDV owned developed 2018) Location Acres 2013 – 2018 Type of Development by (2013- RM (RM million) Acreage CMSB 2018) mil Bandar Samariang Mixed use – mid Phase 1 (balance) 100% 4,211 474 155 635 67.2 income & Part of Phase 2

The Isthmus *51% 199 511 55 Mixed use – new CBD 5.0 9.9

Semi Detached, Lot 9244 100% 19 262 19 - - Condominiums Lane Park Boutique high end 100% 3.5 26.5 3.5 - - Residences Semi-Detached

Bintawa Lot 622 *51% 8 80 8 Commercial - -

Bintawa Lot 2520 Commercial with river *51% 35 350 35 - - & 2521 frontage Toll Bridge land Lot Mixed use – prime 100% 8 150 8 - - 9882 river frontage TOTAL 4,510.9 1,853.5 283.5 640.0 77.1

NOTE: Minority shareholder is Sarawak Economic Development Corporation (SEDC) 26 5. Strategic Investments - Listed

Both strategic investments have strong growth potential with value added by CMS and are not earmarked for divestment or takeover.

25.07% 20.05%

Market Value as of 10/4/2015: Market Value as of 10/4/2015: RM112.85 million RM77.00 million

• New management team installed in 2011 • Expansion into O&G are likely to create who revamped the business and changed Concrete product new material growth opportunities.manufacturing plant its focus to more profitable areas. • Strong pickup of contract flow with • One of top three largest brokerage houses approx. RM343 million worth of contracts in Malaysia, KIBB has one of the largest secured in 2012. pools of remisiers in the country and an Kenanga extensive branch network nationwide. • Secured a three-year Petronas-Approved Supplier licence for “Offshore facilities • In 2014, KIBB was named Malaysia’s Top Const-Major Onshore Fabrication” Retail Broker by Bursa Malaysia in line with

K&N K&N its contribution and performance in 2013. KKB Engineering

28/04/2015 27 6. Strategic Investments - Unlisted

TUNKU PUTRA SCHOOL • Started to support state development, modest cash losses and moving into breakeven.

Education • Exam results continue to be in the top bands for International schools

• Caliber & numbers of experienced expatriate teachers increased so as to expand range of subjects, extra curricular activities & standards generally

• Student numbers expected to rise going forward

CMS OPUS • Operationally profitable and fund under management (FUM) increased from RM75 to RM291m.

Financial • In 2013, the Company successfully established its third fund called Services COPE Opportunities 3 (COPE 3) through the Ekuinas 2nd Tranche Outsourced Fund Managers (OFM) Programme

• The Fund is expected to pursue minority stakes in growth companies where it will serve as an active shareholder with a clear proposition to add value.

28 SCORE - Background

 One of the 5 development corridors by the Federal and Sarawak State Government to turn Sarawak into a developed state by 2020.  To lift the Sarawak’s economy by increasing income per head and improve the quality of life for the people of Sarawak.  Core ~ energy resources: Hydropower (28,000 MW), coal (1.46 billion MT) and natural gas (40.9 trillion sq cubic ft).

 Expected investment of up to RM334 billion (20% from govt. and 80% from private sector).

 CMS is set to be a major local participant of developments under SCORE.

Source: ADL Analysis, EPU Sarawak 28/04/2015 29 Key Projects at Samalaju Industrial Park

Commencement of Investment Project Product Annual Capacity Operation Value (USD)

1st Phase: Jun 2013 1st Phase: 6,200 MT Tokuyama Polycrystalline Silicon 2.5 billion 2nd Phase: Apr 2014 2nd Phase: 13,800 MT

1st & 2nd Phase: 440,000 MT Press Metal Aluminium Sep 2012 >1 billion Full Capacity: 760,000 MT

AML (Pertama Manganese Ferroalloy 1st Phase: 2H 2015 Full Capacity: 434,000 MT 325 million Ferroalloy)

Asia Advanced Metallic Silicon 1st Phase: 1H 2014 Full Capacity: 100,000 MT 203 million Materials

Ferro Manganese: 100, 000 MT Sakura Ferroalloys Ferro manganese & Silicon Manganese 2H 2015 328 million Silicon Manganese: 60, 000 MT

High quality solar and electronics grade Cosmos Chemicals 2016 25,000 MT 1.6 billion polysilicon

Ferrosilicon Alloys (1st Phase) OM Materials Commission: 2H 2014 1st Phase: 308,000 MT Manganese Ferroalloys & Sintered 592 million (Sarawak) Full production: 2H 2015 2nd Phase: 200,000 - 300,000 MT Manganese Ore (2nd Phase)

Commission: 2H 2017 Phosphate Products: 500,000 MT MPA (Sarawak) Phosphate Products & Coke 440 million Full production: 2H 2018 Coke: 450,000 MT 30 7. Samalaju Development

120 Samalaju Development Currently CMS’ direct involvement covers: 100 . Workers accommodation and related 80 72 113 services; 60 . planned new Township and service centre; 40 25 27 RM million 20 14 9 and 0 . investments in 2 energy intensive industrial 2010 2011 2012 2013 2014 -20 plants in SIP. Revenue PBT

Note: Loss in 2011 due to a RM25.19m write off of expenses on the cancelled Salco aluminium smelter project. PBT would have been RM13.52 million excluding the write off. Samalaju Properties’ Landbank covers 1. Approximately 2130 acres earmarked for the Samalaju Eco Park development – a first of its kind green township development with a mix of residential and commercial developments Tanjung 2. 81 acres for Samalaju Central – a mix of commercial, and Samalaju industrial lots at the heart of the industrial park Resort 3. 98 acres of prime beachfront land, of which 23 acres has Hotel been allocated to the construction of Tanjung Samalaju Resort Hotel, with the remainder to be used to develop industrial training centres, and mix use commercial developments. Samalaju 4. Approximately 191 acres earmarked for the development of Light a Light Industrial Park to house small and medium sized Industrial Park 28/04/2015 businesses providing downstream activities 31

Samalaju Property Development

Key Highlights

Operating the only Government approved workers, supervisors & executive camps in Samalaju.

Workers Lodge The provision of accommodation and meals is expected to continue for up to 10 years pending completion of the planned permanent township.

 Samalaju permanent township of approx Laundry Service 2,130 acres is expected to be developed on a fast track basis.

A Hotel / Serviced Units of 175 rooms expected to be operating by 1H 2015

Eating Area

28/04/2015 32 Samalaju Development – OM Materials (Sarawak) Sharehol-  CMS (25%) ders  OM Holdings Ltd (75%), ASX listed & one of the world’s largest manganese ore producers Forecasted Phase 1: Ferrosilicon Alloys (FSA), 16x25.5MVA, 308,000 MTpa Plant Phase 1 to expedite project cash flows by fast-tracking higher margin FSA production Capacity Phase 2: Manganese Ferroalloys and Sintered Manganese Ore, 300,000 MTpa Cost/ Phase 1 Capex USD 398m + USD 26m = USD 424m. 70% debt USD 295m + USD 20m cost overrun facility = USD Funding 315m 30% equity USD 129m, CMS share USD 25.8m Phase 2 Capex estimated to be USD 150m – funding, timing, offtake and project optimization being done Project Commitment letters signed for USD 315m, USD 215m and MYR 310m plus MYR 126m performance and Finance payment securities, Facilities Agreement with syndicate of 4 major regional and international banks signed on (Phase 1) 28 March 2013 Key Dates Phase 1 production ramp up H2 2014 and full production H2 2015

33 28/04/2015 Samalaju Development – OM Materials (Sarawak) S/B

10-year tax holiday and no Logistically well located with the Steel production to grow at import and/or export duties planned Samalaju port providing CAGR of 4.54% up to 2025 drives the competitive convenient access to growing Asian (which will feed through to FA advantage further FA markets. demand), with projected production levels are likely to be remain below demand.

20 year 500mw Power Purchase Agreement Part of a well established already signed underpinning Key vertically integrated business of smelter’s competitive cost Economic OM Holdings Ltd. position. Drivers

OM Sarawak’s position on Binding Off-take the operating cost curve arrangements signed with JFE places it amongst the most Tried & tested technology & lump Shoji, Hanwa and Fesil Sales competitive in 2015 on a sum turnkey EPC with expected LAD AS exceed 60% off-take of the CIF Japan basis. for delays or performance shortfalls. project’s Phase 1 production.

34 Samalaju Development – Malaysian Phosphate Additives (Sarawak)

Shareholders  CMS (40%)  Malaysian Phosphate Additives Sdn Bhd (40%), Phosphate producers since 2005 and have successfully developed and commercialised its process technology for the manufacture of Phosphate products at their manufacturing facility in Lumut Port Industrial Park  Arif Enigma Sdn Bhd (20%)

Power 150 MW Plant Capacity Phosphate products: 500,000 Mtpa and Coke: 450,000 MTpa Cost/ Funding Total investment is RM 1,040 million 70% project financed debt of RM 728m 30% equity of RM 312m and CMS’ share is RM 125m

Project Finance In active discussions with major local financial institutions to select arrangers & line up lenders

EPC Construction will be on lump sum EPC basis by suitably experienced EPC contractors with some nominated sub-contractors/suppliers. Pre-tender discussions are ongoing Off-take & Raw Plan to sign long term commitments for 60% of each. This is progressing on schedule Materials Key Dates Production start in H1 2017 and full production H2 2018

28/04/2015 35 Samalaju Development - Malaysian Phosphate Additives (Sarawak)

10-year tax holiday and no Logistically well located directly Global demand for Phosphate import and/or export duties across from Samalaju Port with products set to grow 2+% per drives the competitive conveyor belts and pipelines to annum reflecting both population advantage further transport raw materials and growth, higher affluence & lack of finished goods. alternative products. This will grow demand for animal feed, fertilizer, Access to competitively priced processed foods/beverages & reliable & long-term (20 years) detergents/cleaning materials. power underpins the competitive cost in production for Phosphate. Key Agreements for key raw materials Economic supply and production offtake are Strong potential to attract Drivers under negotiation to be signed up downstream industries for approximately 60% of each. targeting both Malaysian & export markets in Food, Fertiliser, Feed & Detergent Integrated Phosphate products complex Diversifies CMS’s segments who can reduce enables a variety of phosphate products manufacturing business into a manufacturing costs by beyond the primary product to be new segment with long term switching to MPA’s locally produced so production can switch sustainable growth & future produced phosphate between products to maximize margins products. This locks in long downstream investment term demand opportunities 36 Section 4 Financial Highlights

28/04/2015 37 Group Financials

2006 2007 2008 2009 2010 2011 2012 2013 2014

Revenue 794,844 871,793 893,033 874,600 943,476 1,012,609 1,203,565 1,416,841 1,693,898 (RM’000)

PBT 52,165 (48,018) 150,570 98,526 118,796 178,715 226,906 294,894 341,452 (RM’000)

PATNCI 6,865 388,165 95,770 40,989 65,781 120,023 135,735 175,072 221,335 (RM’000)

S/holders’ funds 851,478 1,238,247 1,248,825 1,277,970 1,312,667 1,416,025 1,480,923 1,654,117 1,811,732 (RM’000)

ROE 37.15 / 7.70 / 0.81 3.24 5.08 8.80 9.37 11.17 12.77 (%) (2.27) 4.51

Borrowing 608,114 678,303 649,767 534,236 394,586 215,747 89,826 100,102 104,796 (RM’000)

Gearings ratio 0.71 0.55 0.52 0.42 0.30 0.15 0.06 0.06 0.06 (times)

52.56/ EPS (sen) 2.08 117.82 29.07 12.44 19.97 36.43 41.39 21.42 17.46

Cash (company) 88,606 626,190 322,086 404,726 753,990 625,542 493,129 579,392 674,600 (RM’000)

28/04/2015 38 Group Key Financials 2010 to 2014 PBT & PBT Margin 1,800 400 25.0% Revenue 20.8% 20.4% 1,600 18.9% 17.6% 20.0% 1,400 300

1,200 12.6% 15.0% 1,000 1,417 200 341 800 1,674 10.0% RM million 295

RM million 1,417 600 1,203 100 227 1,013 178 5.0% 400 943 119 200 0 0.0% 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 PBT PBT Margin Revenue ’10 - ’14 CAGR = 15.4% PBT ’10- ’14 CAGR = 30.1% 2,000 0.35 Balance Sheet 11.17% 12.77% 1,800 50 13% 0.3 0.3 1,600 11% 40 8.80% 9.37% 1,400 0.25

9% 1,200 0.2

30sen 5.08% 7% 1,000 0.15 1,812 times RM 1,654 0.15 20 41.39 5% RM million 800 1,480 36.43 1,313 1,416 3% 600 0.1 21.42 0.06 0.06 0.06 10 19.97 17.52 400 773 830 1% 650 524 0.05 200 395 0 -1% 216 90 614100 105 2010 2011 2012 2013* 2014 0 0 2010 2011 2012 2013 2014 ROE EPS S/holders’ funds Cash Borrowing Gearings *Adjusted for share split & bonus issue in June 2014 39 Revenue Breakdown

Revenue by segment (RM'm) Revenue by segment (%)

1,800 34 100% 3% 3% 2% 15 Others 3% 2% 1% 1,600 6% 8% 7% 114 90% 10% 18% 5% 5% 1,400 32 Samalaju 80% 22% 113 [VALUE] 20% Development 8% 18% 20% 75 1,200 33 70% 72 60 289 Property 60% 1,000 32 29% 26 Development 22% 23% 28 - 235 103 50% 28% 36% 599 800 166 185 75 393 Construction & 40% 281 600 Road 274 222 Maintenance 30%

400 Construction 20% 42% 44% 43% 36% Materials & 33% 523 515 548 200 400 445 Trading 10%

Cement 0% - 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

28/04/2015 40 PBT Breakdown

PBT by segment (RM'm) PBT by segment (%) 2% 350 5 3% 9 9% 90% 1% 11% 13% Others 300 46 11% 27 2% 11% 39% 31 70% 34% 25% 250 84 Samalaju 32% 36% 25 Development 14% 200 3 24 95 50% 31% 22% 19% 2 69 76 Property 150 81 Development 18% 40 30% 55 57% 25 67% 100 37 35% 41 Construction & Road 29% 33% Maintenance 10% 120 50 101 97 -3% 80 66 -5% Construction -10% -4% - Materials & Trading -33% (1) (12) (11) (10) (8) (39) (50) Cement -30% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

28/04/2015 41 Dividend Policy

Dividend policy since November 2014 is a minimum of 40% PATNCI, subject to minimum of 2 sen per share and other considerations.

Gross DPS and Net Payout Ratio (%) 18 45 40 16 37.6 40

14 31.3 35 30.9 30.9

12 30

10 25 Ratio (%) Ratio

8 20 DPS (Cent) DPS Payout

6 15 Net

4 10

2 5 5 15 17 17 8.5 0 0 2010 2011 2012 2013 2014* Ordinary Dividend Special Dividend Net Payout Ratio (%)

Net Payout Ratio = Percentage of PATNCI paid out in dividends to shareholders

* Following the payment of an interim dividend of 1.5 sen per share of RM0.50 each, the BOD has proposed to declare a final tax exempt (single-tier) dividend at the coming AGM of 7.0 sen per share of RM0.50 each 42 Section 5 Corporate Social Responsibility & Governance

28/04/2015 43 CSR & Governance

CSR Governance

Year round staff volunteerism in multiple Never reprimanded by the regulators i.e. staff-led projects have built respect for Bursa. CMS within the local community and made staff feel more engaged. Plans in hand to comply with the new 2012 Bursa Corporate governance rules. Donations & sponsorships – focused within Sarawak. CMS compassionate fund donates to staff and their families in urgent need. Safety – strong focus on this in every way including groupwide KPI demerit system.

28/04/2015 44 Section 6 Group Strategies & Going Forward

28/04/2015 45 Group Strategies And Going Forward

THE 9 POINT SCORE CARD

Solid & Supportive Private sector sustainable s/holders & driven profits bankers profitability

Strong balance Growing sheet & financially community SCORE play prudent respect

Experienced Growing of Corporate Management exportable Governance Team expertise

28/04/2015 46 Group Strategies and Going Forward

Riding on the Sarawak Growth Story Strategies

2013 Malaysian GDP growth tops estimate at 4.5%.  Investment in projects: . Hurdle rate / IRR: At least 18%; Sarawak is more insulated from external . Scaleable / long term sustainability; downturns & turmoil due to the long term nature . Quality partners / JVs; of its economic drivers in SCORE. . Raw materials processing / manufacturing and/or infra / services focus. Sarawak’s GDP grew by 4.5% in 2013 and is  Maximise our core business divisions & our Strategic expected to register accelerating growth fuelled by Investments to take advantage of Sarawak’s growth. SCORE.  An indispensable ally to its State’s development Be the best proxy investment for Sarawak’s regardless of politics – thru professionalism and neutrality. accelerating growth via:  Be known for our Corporate Governance, Sustainability & Management Competency.  Energy intensive industry investments; and  Acquire expertise / knowledge for regional expansion  consequential infrastructure and related outside Sarawak later. services required across the State.  To maintain a moderate risk profile

47 Conclusion

The Confident Company Leveraging on Sarawak’s Growth Story

Cement & Construction & Property Strategic Investments Robust Management, Samalaju Strategic Construction Road Development Financials Staff & Investments Materials Maintenance Processes • Township • Undervalued KKB K&N • Strong • OM • Largest • Steady Land Banks Cash • Proven Bottom Line Recurrent P&L • Workers • MPA • Ongoing • Bottom Line Balance Contributor • Prime Lands • Engaged Lodge Growth Contribution • Others TBA • Low Potential Potential • Has Gearing • Develop- Bandwidth ment • O&G

To Join the RM6 Billion Market Caps Club & Malaysia’s Top 50 Listed Companies

28/04/2015 48 THANK YOU.

ANY QUESTIONS?

28/04/2015 49