SIME DARBY

LOGISTICSSeptember 2017

Operates four ports across and in ,

Weifang Sime Darby Port lies within the prime region of the Bohai Sea’s economic belt, one of the busiest seaways in the world

Total handling capacity of approximately 44 million metric tonnes (MT) per annum

Weifang Port achieved first tier port status

Weifang water has a daily capacity of 140,000 cubic metres

Weifang water is the sole supplier of treated water in the Weifang Binhai Economic-Technological Development area (BEDA) September 2017

SIME DARBY LOGISTICS

Dongying

Denzhou

Qingdao Weifang

Taian

Weifang Sime Darby Port Co Ltd Weifang Sime Darby Water Management Co Ltd

Jining

People‘s Republic of China

Jining Sime Darby Port Co, Ltd Jining Sime Darby Longgong Port Co,Ltd Jining Sime Darby Taiping Port Co,Ltd

Sime Darby Logistics is involved in ports and logistics Shandong and water management businesses in the province of Shandong, in Eastern China. Sime Darby Logistics employs approximately 1,000 employees based in Weifang and Jining.

Sime Darby Logistics’ first foray into Shandong began in the prefecture-level city of Weifang with the incorporation of Weifang Sime Darby Port Co Ltd and Weifang Sime Darby Water Management Co Ltd in 2005.

Today, Sime Darby Logistics’ operations in China have expanded to include three river ports in the prefecture- level city of Jining. September 2017

PORTS AND LOGISTICS

Located in the prime region of the Bohai Sea’s economic Weifang Sime Darby Port Co L td belt, Weifang Port is a seaport that handles bulk (dry and Weifang Sime Darby Port Co Ltd (”Weifang Port”) liquid), general cargo and containers. Weifang Port commenced operations in 1998, following an invitation currently has a total handling capacity of 36 million MT from the Weifang Municipal Government to invest in the per annum with an annual throughput of 21.4 million MT. ports and logistics business in the city and to further develop Weifang Port, Sime Darby incorporated Weifang Jining Ports comprise three fully operational ports - Yuejin Sime Darby Port Co Ltd in August 2005. Port, Longgong Port and Taiping Port, all of which handle mostly coal/coke, bulk and general cargoes. Currently, Weifang Sime Darby Port Co Ltd is a joint venture Jining Ports have a combined handling capacity of 16.4 company between Sime Darby Overseas (HK) Ltd million MT per annum via three of its operational ports. (80.6%), Sime Darby Utilities Sdn Bhd (18.4%) and Weifang Port Co Ltd (1%). Jining Sime Darby Taiping Port Co L td In April 2009, Weifang Port achieved first tier port status Jining Sime Darby Taiping Port Co Ltd (“Taiping Port”) awarded by the Ministry of Communications and was founded in 2009 by Sime Darby Overseas (HK) Transportation of China. In December 2010, the Limited (70%) and City Road Engineering Co Ltd (30%). Shandong Provincial Government and the Ministry of Communications and Transportation conferred the title The port is located in Zoucheng, a county-level city in the of ‘Regional Important Port’ on Weifang Port. south of Jining. Taiping Port operates within Jining Taiping’s industrial park Weifang Port lies strategically within the network of and offers customers shipping services to southern regions Port, Yantai Port, Weihai Port, Port of China such as Jiangsu, Shanghai and Zhejiang. and Rizhao Port. Weifang Port’s prime location makes it an excellent gateway and a natural choice for cargoes Taiping Port has a total handling capacity of three million from central, northern and western Shandong and MT per annum, mainly handling cargoes such as coal, Weifang cities. break-bulk, chemical handling, shipping and warehousing operations. Key Statistics Berth length 2,263 metres Key Statistics Acreage 1,669,000 square metres Berth length 370 metres Capacity 21.6 million MT Acreage 180,000 square metres Berths 3x20,000 MT - dry bulk Capacity 3 million MT per annum 3x20,000 MT - container Berths 2x1,000 MT - coal 2x10,000MT - dry bulk 2x1,000 MT - general bulk 3x5,000 MT - dry bulk cargo 1x5,000 MT - liquid cargo Cargo type Coal/coke and general bulk 3x3,000 MT - liquid cargo Customer base Jiangsu, Zhejiang, Shandong Cargo type Dry bulk, container and and Hebei liquid cargo Facilities/Equipment Ship loaders, conveyor belts, Customer base Japan, Korea, Shandong, fixed cranes, loaders and dump Zhejiang and Hebei trucks Facilities/Equipment Portal crane, bridge crane, wheel loader and excavator Jining Sime Darby Longgong Port Co Ltd Jining Sime Darby Port Co Ltd Jining Sime Darby Longgong Port Co Ltd (“Longgong Jining Sime Darby Port Co Ltd (“Yuejin Port”) was Port”) was incorporated in November 2008 as a joint incorporated on 13 March 2008 as a joint venture company venture company between Sime Darby Overseas (HK) Ltd. between Sime Darby Overseas (HK) Ltd (70%) and (70%) and Jining City Rencheng City Construction Shandong Province Jining Municipal Bureau of Navigation Investment Co Ltd (30%). The port has been fully Administration Channel Engineering Unit (30%). The port operational since April 2012. began operations in November 2009. Located along the Longgong River, the port is situated in Located in Rencheng, Jining – a prefecture-level city in the southern region of Jining, handling mostly coal/coke the Shandong province, Yuejin Port is an inland river port and other general cargoes. that handles mostly coal/coke and other bulk cargoes with a total handling capacity of nine million MT per annum. Its Longgong Port has a total handling capacity of three strategic location offers customers a convenient shipping million MT per annum. Since commencement of operations, option to access southwest regions of China such as Longgong Port’s annual throughput has reached 2.1 million Shandong, Shanxi and Hebei. MT and recorded a revenue of over RMB10 million. Yuejin Port is part of the Jining Government’s efforts to Longgong Port is scheduled to begin the second phase consolidate 35 coal jetties in the region to reduce coal of construction for five additional one million MT pollution along the Grand Canal in Jining, as well as to berths in 2017. The expansion will increase the port’s improve the efficiency of canal transportation. total handling capacity to eight million MT per annum.

Key Statistics Key Statistics Berth length 228 metres Berth length 615 metres Acreage 323,333 square metres (485 mu) Acreage 460,666 square metres (691 Capacity 3 million MT per annum mu) Berths 1x1,000 MT - coal Capacity 9 million MT per annum 2x1,000 MT - dry bulk and liquid bulk Berths 5x1,000 MT - coal berths 2x1,000 MT - dry bulk (mainly Cargo type Coal/coke and general bulk yellow sand) and coal imports cargo Cargo type Coal, coke, sand, porcelain Customer base Hebei, Sha’anxi, Shanxi, clay, aggregates and general Shandong, Yangtze River Delta cargo and Shanghai Customer base Mostly from Hebei, Sha’anxi, Facilities/Equipment Ship loaders, conveyor belts, Shanxi, Jining, Yangtze River fixed cranes, loaders and dump Delta and Shanghai trucks Facilities/Equipment Conveyor belts, bucket wheel excavators and reclaimers, ship loading systems, fixed cranes, loaders, dump trucks and coal drying area.

Jining Sime Darby Taiping Port Co., Ltd September 2017

WATER MANAGEMENT

Weifang Sime Darby Water Management Co Ltd

Weifang Sime Darby Water Management Co Ltd On 1 March, 2012, Weifang Water invested 8.9 million (“Weifang Water”) was incorporated on 29 July 2005 as a to upgrade its first water treatment plant which was joint venture company between Sime Darby Overseas (HK) completed in January 2013. The processed water now Ltd (80%) and Sime Darby Utilities Sdn Bhd (20%). meets the requirements of the national drinking water standard GB5749-2006. In the same year, Weifang Water Located two kilometres north of Yangzi Town in the completed construction of a 180 kilometre water Weifang Binhai Economic-Technological Development supply pipeline covering the advanced technology park, Area (BEDA), in the Shandong province, Weifang Water science and educational park, central business district comprises two water treatment plants and a flatland and surrounding industrial areas. This project forms part reservoir with a capacity of 3.5 million cubic metres per of the essential infrastructure for the expansion and day. development of BEDA.

Weifang Water’s first water treatment plant had an By 2018, Weifang Water will complete phase two of initial capacity of 40,000 cubic metres per day. In the second water treatment plant as well as the piping October 2007, an upgrade the treatment plant increased network for the science and educational park,commercial total capacity to 80,000 cubic metres per day. In line and residential park and advance technology park. with the economic growth within the region, a second Weifang Water’s daily capacity will increase to 200,000 water treatment plant with a capacity of 60,000 cubic cubic metres and actual throughput will exceed 160,000 metres per day, commenced in June 2009. Today, cubic metres daily with the completion of these projects. Weifang Water has a capacity of 140,000 cubic metres, a threefold increase since 2005. Its annual throughput By 2020, the construction of an additional water supply had increased to 34 million cubic metres. pipeline network at the harbour logistics park and tourist resort area will be completed. With the increased pipeline Weifang Water is the sole supplier of treated water in coverage, the actual throughput is expected to increase to BEDA. Its customer portfolio grew significantly from 200,000 cubic metres per day. three (The Haihua Group, Xinyuan Water Management and Weifang Sime Darby Port) in 2005 274 companies. The Haihua Group, which accounts for approximately 50% of Weifang Water’s total throughput, is its key client.

Weifang Water’s water treatment plant September 2017

EXECUTIVE LEADERSHIP

TIMOTHY LEE CHI TIM ALAN TONG YONG HAN Managing Director, Chief Financial Officer, Sime Darby Logistics Sime Darby Logistics

AGE 52 INDUSTRY EXPERIENCE 25 AGE 51 INDUSTRY EXPERIENCE 25

Timothy Lee is the Managing Director Alan Tong is a seasoned finance and of Sime Darby Logistics. He manages multi-disciplined executive with more the Ports & Logistics and Water than 25 years of financial management Management business units located in experience. He has served several Weifang and Jining within the Fortune 500 Global MNCs over the past Shandong province in China. Lee has 20 years in China. Tong has experienced over 20 years of operational experience the full spectrum of China’s economic in the ports and container terminal transformation during his senior management industry. Prior to joining leadership positions; Finance Director Sime Darby in 2011, he was with of Airbus China and Financial Modern Terminals Limited, the second Controller of Heineken Breweries (Asia largest Port Operator in Hong Kong, Pacific Breweries) based at various where he was responsible for terminal locations in Southern China, Shanghai developments, stakeholder and Beijing. As a key member of the management, and ensuring optimum global business leadership team he is performance levels of terminal responsible for leading all aspects of operations. Lee was formerly the finance, tax, information technology Chairman of the Sea Cargo Customer and strategic planning and acquisition Liaison Group in 2010, a committee projects. Tong joined Sime Darby organised by the Hong Kong Customs & Logistics in January 2016 as its Chief Excise Department to gather industry Financial Officer. expertise to improve port competitiveness. GOH CHONG EE Head - Strategy & Business Development, LAI AH CHEK Sime Darby Logistics Head - Marketing & Logistics, Sime Darby Logistics AGE 45 INDUSTRY EXPERIENCE 3 AGE 61 INDUSTRY EXPERIENCE 36 A seasoned banker with more than 10 years of corporate experience, Goh Lai Ah Chek has spent 36 years in the Chong Ee was with AmInvestment Bank transport and logistics industry. He is Bhd and ECM Investment Bank Bhd currently the Head of Marketing & where he held senior leadership Logistics for Sime Darby Logistics, a positions and advised top Southeast position he has held since 2011. Lai was Asian clients on capital raising, financial earlier responsible for the orderly restructuring and merger and development and construction of the acquisition transactions. He joined a ports in Jining and the expansion diversified group listed on Bursa programme in Weifang. He has since Malaysia as Deputy General Manager moved to develop Weifang port’s with prime responsibility for leading all logistics park, one of the growth aspects of strategy, planning and strategies adopted in the port commercial development projects of blueprint. Prior to joining Sime Darby, the group. Goh joined Sime Darby Lai’s has assisted local and foreign Logistics in 2015 as the Head of companies to start up their logistics Strategy and Business Development operations and practices in Malaysia. and he is a core member of the Division He spent six years teaching logistics at Management Committee and executive the Singapore Polytechnic and the director of key joint venture companies Royal Melbourne Institute and subsidiaries. of Technology. BELINDA QIN CHUN HUI ZANG QIAN Head - Human Resource, Head - Project Management Office, Sime Darby Logistics Sime Darby Logistics

AGE 40 INDUSTRY EXPERIENCE 6 AGE 53 INDUSTRY EXPERIENCE 12

Belinda Qin has vast experience in Zang Qian was appointed as the human resource management. She General Manager of Weifang Sime began her career in Human Resource in Darby Port Co Ltd in 2016. He began his 2009 and joined Sime Darby in 2011 as career in Sime Darby in 2006 as Head of the Human Resource Manager of Sime Finance and Deputy General Manager Darby Logistics. She was promoted as of Weifang Sime Darby Water Co Ltd, Head of Human Resource Sime Darby and was appointed as the Deputy Logistics in 2013. General Manager of Weifang Sime Darby Port Co Ltd in 2007. Zang held the position of General Manager of Jining Sime Darby Port Co Ltd from LI CHANG YOU 2009 to 2012. Thereafter he was Government Affairs Officer, appointed as the Deputy General Sime Darby Logistics Manager and Head of Project of Weifang Sime Darby Port Co Ltd, a AGE 50 INDUSTRY EXPERIENCE 28 position he held from 2013 to 2015. Zang is now the head of the project Li Chang You started his career in the management office at Sime Darby logistics industry in 1990, as the Logistics. Deputy Director of Office of Weifang Traffic Committee and Director of Office of Weifang Port Authority, a position he held for six years. He joined Weifang Port Co Ltd in 2003, as Deputy General Manager of Weifang Port Co Ltd and has served as the General Manager of Weifang Sime Darby Water Co Ltd and General Manager of Jining Sime Darby Port Co Ltd. He was appointed as the Assistant of Managing Director of Sime Darby Logistics overseeing government affairs in October 2013. September 2017

FINANCIAL HIGHLIGHTS

REVENUE (RMm) * PROFIT BEFORE INTEREST RETURN ON AVERAGE & TAX (PBIT) (RMm) * INVESTED CAPITAL (ROAIC) (%) *

120 350 7

300 100 6

250 5 80

200 4

60

150 3

40 100 2

20 50 1

0 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

*as at June 2016

Weifang Sime Darby Port Co., Ltd.