UMW Holdings Berhad

CORPORATE PRESENTATION July 2016 UMW AT A GLANCE

Number 1 in Malaysia’s automotive industry with 46% market share in 2015.

Toyota forklift has 50% market share in Malaysia; Top 5 distributors in the world.

Malaysia’s only owner-operator of jack-up drilling rigs.

First Malaysian company to become a Tier-1 supplier to Rolls-Royce Plc.

UMW Holdings Berhad 2 ENHANCING CAPABILITIES Laying Building Blocks for Excellence

Tier-1 supplier to Rolls-Royce

34 years with 23 years with

Founded in 1917

FAN CASE MANUFACTURER

AUTOMOTIVE ASSEMBLY

BICYCLE REPAIR SHOP

UMW Holdings Berhad 3 UMW MILESTONES

2010s

2000s 2013 - UMW Oil & Gas Corporation Berhad listed on Bursa 1990s 2002 - Oil & Gas Malaysia Division 2015 - UMW was established as selected as Rolls- 1980s 1993 - Largest UMW’s 4th core Royce’s only shareholder in business Malaysian partner , 2006 - UMW is for a 25+5 year 1970 with Daihatsu the official Lexus 1982 - Toyota contract to Motor Co. Ltd. as distributor vehicle manufacture fan the technology 2008 – UMW franchise case 1960s United Motor 1987 - PNB provider Rebranding Works (Malaysia) became major Holdings Berhad shareholder listed on stock 1917 1965 - Komatsu exchange heavy Chia Yee Soh equipment founded a distributorship small family 1967 - Toyota business in Forklift franchise Singapore

UMW Holdings Berhad 4 INTERNATIONAL PRESENCE – 13 Countries

Automotive 2015 Revenue Equipment RM14.4 billion Turkmenistan Myanmar Manufacturing & Engineering Oil & Gas

2015 PBT RM269.7 million China Taiwan

Vietnam

Employees Malaysia

12,328 Papua New Guinea

Singapore

Australia Credit Rating Indonesia RAM: AA2 Oman India Thailand

UMW Holdings Berhad 5 2015 Revenue & PBT Breakdown

Revenue Profit Before Taxation

5% 2% 2% 6%

20% 13%

78% 74%

Automotive Equipment Oil & Gas M&E Others

UMW Holdings Berhad 6 Key Performance Indicators ANNUAL DIVIDEND PAYOUT

>100.0 75.8 75.2 78.7 76.1 57.7 59.0 58.8 48.8 50.3 50.8

Payout Ratio (%) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

50.0 44.0 37.0 41.0 30.0 30.0 31.0 19.0 20.5 20.0 20.0 Gross Dividend Per Share Of RM0.50 Each (sen) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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

UMW Holdings Berhad 7 Key Performance Indicators RETURN ON SHAREHOLDERS’ FUNDS

21.9%

16.5% 17.0% 13.5% 12.7% 12.5% 11.7% 11.7% 10.5% 10.1%

-0.6%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

UMW Holdings Berhad 8 OUR COMMITMENT

Long term partnership with Toyota o The new RM2 billion plant will enhance localisation and establish 1 Malaysia as an Energy Efficient Vehicle (EEV) hub. o Will focus on high skilled and high income workforce.

Commitment to Oil & Gas business o Continue to provide support to UMW Oil & Gas to ensure survivability in 2 the short term and sustainability in the long term.

Venture into high value manufacturing o The foray into manufacturing of fan casing with Rolls-Royce will spur 3 UMW entry into the high value manufacturing. This would position UMW as the leading partner for other OEMs. o This will mitigate over reliance on automotive in the long run. o This will promote the development of highly skilled human capital. o Impetus for the development of Serendah land. The above ensures continued returns on our core businesses as well as generating sources of income from new growth areas.

UMW Holdings Berhad Page 9 Our Shareholders - (As of 31/07/2016)

Permodalan Nasional Berhad (PNB)/ Foreign PNB Managed Unit Trust Funds, 57.56% Shareholders, 11.36%

Market Capitalisation Other Local Shareholders, (31/07/2016) Employees Provident 14.56% RM6.7 billion Fund Board, 16.52%

* PNB and EPF shareholdings are based on direct interest and deemed interest

UMW Holdings Berhad 10 OUR BUSINESS DIVISIONS

CORE BUSINESSES NEW GROWTH

Automotive Equipment O&G M&E Technology Land

• Investment • Property • IT support development services

Heavy Industrial Lubricant Auto Component Drilling Oilfield Services NON CORE BUSINESSES

Aerospace Oil & Gas Related Marine & Power • Distribution • Distribution • Drilling • Distribution • Manufacturing • Assembly • Trading operation • Manufacture • Land Rigs • Manufacture • After sales • Oilfield • Trading services • Sales & service Service

UMW Holdings Berhad Page 11 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. transmission components

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

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

UMW Holdings Berhad Page 13 TOYOTA MANUFACTURING PLANT

CURRENT

• Started operations in 1968. Toyota Boshoku • Land area - 129,500m². • Build up area - 94,600m². • Located in Shah Alam, Selangor. • It currently assembles Vios, Camry, Hilux, Fortuner, Innova and Hiace.

• Annual capacity (No OT @ 242 days/year) - 75,700 units. Corolla Room

NEW • Expected to start operations in early 2019.

• Plant & land size - 670,000 m². • Location - Bukit Raja Industrial Estate, Klang. • Total Investment - RM2 billion

• Annual Capacity - 50,000 units. (Initial)

UMW Holdings Berhad 14 TOTAL INDUSTRY VOLUME (TIV)

TIV % Change Over Previous Year RHS

Total Industry Volume – Unit Sales LHS

1,200,000 13.3% 12.5% 12.7% 20% 4.6% 4.5% -0.7% -2.0% -0.8% 1.6% 0.0% 1,000,000 -11.1% 0%

800,000 -20% 655,793 666,465 666,674 627,753 605,156 600,123 600,000 552,316 548,115 536,905 -40% 490,768 487,176 400,000 -60%

200,000 -80%

0 -100% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

• Target for 2016 is 650,000 units (-2.5% growth) due to low consumer sentiment.

• It was revised to 580,000 (-13%) units on 20 July 2016 due to lower sales in 1H2016.

UMW Holdings Berhad 15 LEXUS & TOYOTA

UMW Toyota Motor Market Share Of TIV RHS

UMW Toyota Motor Unit Sales LHS

200,000 18.6% 20% 17.0% 16.5% 16.7% 16.9% 18% 15.3% 15.2% 15.6% 14.8% 14.4% 16% 150,000 14.1% 14% 12% 101,839 106,622 103,636 95,861 100,000 91,003 91,990 88,662 92,521 10% 81,808 82,188 82,089 8% 6% 50,000 4% 2% 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

• Vios was our top selling model in 2015 with 36% of total Toyota sales. Hilux was second with 30%. • Lexus achieved a new record in 2015 with 2,101 units sold. • Importation of CBU cars and CKD components are transacted in US Dollar. • The target for 2016 was revised to 70,000 units in July 2016.

UMW Holdings Berhad 16 AUTOMOTIVE DIVISION

Lexus models in Malaysia – CBU from Japan CBU – Completely Built Unit

IS ES GS LS Variant: 4 Variant: 3 Variant: 7 Variant: 4 Price Range: RM298k – RM452k Price Range: RM275k – RM371k Price Range: RM439k – RM1,070k Price Range: RM844k – RM1,185k 2nd top selling model in 2015 with 33% of total Lexus sales

NX RX LX CT Variant: 5 Variant: 6 Variant: 1 Variant: 3 Price Range: RM310k – RM398k Price Range: R389k – RM520k Price Range: R924k Price Range: R276k – RM366k Top selling model in 2015 with 55% of total Lexus sales

RC LC Variant: 2 Price Range: RM529k – RM787k AUTOMOTIVE DIVISION CKD – Completely Knock Down Toyota models in Malaysia CBU – Completely Built Up Vios (CKD) Corolla Altis (CBU Thailand) Camry (CKD) Alphard (CBU Japan) Variant: 5 Variant: 4 Variant: 2 + hybrid Variant: 2 Price Range: RM78k – RM98k Price Range: RM121k – RM147k Price Range: RM155k – RM175k Price Range: RM420k – RM520k Top selling model in 2015 with 36% of total Toyota sales.

Vellfire (CBU Japan) Sienta (CBU Indonesia) Avanza (CBU Indonesia) Innova (CKD) Variant: 1 Variant: 2 Variant: 4 Variant: 4 Price Range: RM355k Price Range: R93k – RM100k Price Range: R72k – RM83k Price Range: R104k – RM115k

Hilux (CKD) Fortuner (CKD) Rush (CBU Indonesia) Hiace (CKD) Variant: 6 Variant: 2 Variant: 2 Variant: 3 Price Range: R90k – RM134k Price Range: R187k – RM200k Price Range: R104k – RM109k Price Range: R95k – RM109k 2nd top selling model in 2015 with 30% of total Toyota sales.

PERODUA

Perodua Market Share Of TIV RHS

Perodua Unit Sales LHS

350,000 40% 33.3% 300,000 31.7% 30.1% 30.5% 31.1% 31.2% 30.0% 30.1% 29.9% 29.3% 30% 250,000 25.3% 213,307 188,641 189,137 196,071 195,579 200,000 179,989 167,393 166,736 155,419 162,152 20% 150,000 139,680

100,000 10% 50,000

0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

• Perodua maintained the No. 1 position in overall market share since 2006 • Currently exporting to six countries, namely, Indonesia, Singapore, Mauritius, Fiji, Sri Lanka and Brunei. • Perodua’s first , Bezza, was launched on 21 July 2016. • Target for 2016 is 216,000 units.

UMW Holdings Berhad 19 AUTOMOTIVE DIVISION

Perodua models in Malaysia - CKD CKD – Completely Knocked Down

Bezza Alza Variant: 5 Variant: 5 Price Range: RM37k – RM51k Price Range: RM52k – RM65k Launched 21 July 2016 Target: 7,600 units per month in 2016

Axia Myvi Variant: 6 Variant: 5 Price Range: R24k – RM42k Price Range: R41k – RM58k

UMW GROUP’S MARKET SHARE Units & Market Share (%) YTD June Brand YTD June 2016 2015

Market Units Market Units Share % Share %

Proton 13.0 35,727 15.3 102,175 Honda 14.4 39,654 14.2 94,902 Nissan 7.7 21,148 7.1 47,235 Mazda 2.7 7,346 2.1 14,325 Hyundai, Kia 1.7 4,722 1.6 10,960 Others 15.0 41,632 13.3 87,909 Total 54.5 150,229 53.6 357,506

2015 Perodua 213,307 97,370 32.0% 35.3%

2015 UMW Toyota 95,861 27,880 Others 2015 14.4% 10.1% 150,229 357,506 54.5% 53.6%

• UMW companies sold 309,168 units in 2015 with a market share of 46%.

UMW Holdings Berhad 21 Automotive Division

• Low consumer sentiment due to rising cost of living, slowdown in economy, low oil price environment Challenges • Tightening of lending guidelines by the financial institutions • Aggressive marketing strategy by the industry players • Weakening Ringgit against the US Dollar

• Introduction of new models:- Toyota Hilux (launched on 5 May) Toyota Fortuner (launched on 5 May) Perodua Bezza (launched on 21 July) Toyota Alphard (launched on 4 August) Toyota Vellfire (launched on 4 August) Our Toyota Sienta (targeted for 3Q16) strategy Toyota Innova (targeted for 4Q16) Toyota Vios face-lift (targeted for 4Q16) Toyota Camry face-lift (targeted for 4Q16) • Set up a second plant to increase productivity (higher automation) and introduce more models • Kaizen (continuous improvement) and cost reduction activities • Continuously increase local content

UMW Holdings Berhad 22 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

UMW Holdings Berhad 24 HEAVY EQUIPMENT

Myanmar Malaysia Singapore Since 1965 Papua New Guinea

• Komatsu franchise in Malaysia, Singapore, Myanmar and Papua New Guinea • Has strong presence in Myanmar, supplying equipment to the jade mining and resource mining sectors.

Since 1979 Since 1996

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

UMW Holdings Berhad 25 INDUSTRIAL EQUIPMENT TOYOTA FORKLIFT FRANCHISE

China Shanghai, Zhejiang Vietnam Malaysia Brunei Singapore

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 26 MARINE AND POWER EQUIPMENT

CompAir Honda Gas Compressor Power Products

Cameron Centrifugal Compressor

Mitsubishi & GE Marine Engines

Cameron Reciprocating Compressor

UMW Holdings Berhad 27 Equipment Division

• Business communities generally scaling down capital expenditure. • Cautionary operating expenditure in the current low commodity prices. • Slowdown in property development and mining sectors has suppressed demand. Challenges • Change of government in Myanmar has led to uncertainties in policies related to the jade mining industry. • Higher selling price due to the appreciation of US Dollar and Japanese Yen against Ringgit.

• A record-breaking number of projects were awarded for the Latest construction sector in 1H16. • Key projects include MRT2, Pan Borneo Highway, LRT3.

• Aggressive marketing activities to compete for sales from the construction industry. Our • To explore supplying Komatsu equipment to other industries in Myanmar. strategy • Industrial equipment will continue to focus on expanding the equipment rental business. • Process improvement and cost reduction activities

UMW Holdings Berhad 28 OIL & GAS Operations

29 UMW OIL & GAS CORPORATION BERHAD Listed On Bursa Malaysia (55.73% subsidiary)

A Malaysian-based multinational oil & gas (“O&G”) player focused on providing drilling and oilfield services for the upstream sector of the O&G industry.

. 1 Semi-submersible – NAGA 1 Offshore Rigs 8 . 7 Jack-ups – UMW NAGA 2, UMW NAGA 3, UMW NAGA 4, UMW NAGA 5, UMW NAGA 6, UMW NAGA 7, UMW NAGA 8 Drilling Services

Hydraulic 5 Workover . UMW GAIT I, UMW GAIT II, UMW GAIT III, UMW GAIT V, Units UMW GAIT VI

. 1 West Plant & 1 East Plant in Labuan, Malaysia . 1 Sattahip & 1 Songkhla, Thailand Oilfield Services Plants 6 . 1 Tianjin, China . 1 Turkmenbash, Turkmenistan

Oilfield Drilling services services 4% Segmental revenue breakdown 96% for FY2015

UMW Holdings Berhad 30 DRILLING SERVICES - Malaysia’s only owner-operator of premium jack-up drilling rigs.

SEMI- CUSTOMER CONTRACT DURATION CONTRACT SUBMERSIBLE AWARDED DRILLING RIG

NAGA 1 PETRONAS Carigali Sdn. Bhd. 5 + 2-year August 2011

JACK-UP CUSTOMER CONTRACT DURATION CONTRACT DRILLING RIG AWARDED

UMW NAGA 2 Bidding for contracts

UMW NAGA 3 Bidding for contracts

UMW NAGA 4 Bidding for contracts

UMW NAGA 5 Bidding for contracts

UMW NAGA 6 PETRONAS Carigali Sdn. Bhd. 2 years 31 May 2016

1-year option for renewal

UMW NAGA 7 PETRONAS Carigali Sdn. Bhd. 7 firm wells; 1+1 option well 15 October 2015 for renewal

UMW NAGA 8 SapuraKencana Petroleum Bhd. 18 firm wells; 3 option wells 28 September 2015 for renewal

UMW Holdings Berhad 31 UMW Oil & Gas Corporation Berhad

• Low oil price environment due to oversupply/low demand • Lesser number of drilling contracts awarded; more rigs available Challenges • Charter rates have dropped between 30% and 40% • High financing cost as our rigs are relatively new

• Malaysia’s only owner-operator of jack-up drilling rigs Our • Direct negotiations with PETRONAS for contracts advantage • Have worked for major industry players in ASEAN • Young fleet of jack-up drilling rigs (average 2 years)

• Aggressive marketing activities in the ASEAN region Our • Established an office in the Middle-east to bid for contracts in the strategy region • Cost reduction activities

UMW Holdings Berhad 32 MANUFACTURING & ENGINEERING Operations KEY PRODUCTS

AEROSPACE LUBRICANTS AUTO COMPONENTS COMPONENT

Fan Shock Lubricants & Case Absorbers Fluids & Power Steering

Lubricants & Fluids Automotive (China) Components

Fluids & Chemicals

UMW Holdings Berhad 34 MANUFACTURE OF AERO ENGINE FAN CASES UMW M&E SDN BHD

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

UMW as the 1st Malaysian Tier 1 Supplier to Rolls Royce • The project is for the manufacture of fan cases for the Trent 1000 aero engines for 25 years (Trent 7000 engines-later) for Rolls-Royce’s (“RR”) supply chain.

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

• The manufacturing plant will be located in Serendah, Selangor.

• The first delivery is targeted for October 2017.

UMW Holdings Berhad 35 LUBETECH SDN BHD (MALAYSIA) UMW ADVANTECH SDN BHD UMW LUBRICANT INTERNATIONAL SDN BHD (MALAYSIA) Manufacturing of automotive components in Selangor LUBRITECH LIMITED (CHINA)

Manufacturing and distribution in Selangor

In-house brand Spain's largest integrated American oil oil & gas company company

* Full capability at TBA KYB-UMW MALAYSIA SDN BHD KYB-UMW STEERING MALAYSIA SDN BHD

Manufacturing and distribution in Guangdong Manufacturing of Automotive shock absorbers in Selangor

Shock Absorbers for Shock Absorbers for 2-wheelers 4-wheelers

* Full capability at 50 mil/liters p.a. Power Steering Pump Power Steering System

UMW Holdings Berhad 36 Manufacturing & Engineering Division

• Negative growth in the automotive industry will affect the demand for auto components. Challenges • Replacement market is still sluggish due to soft consumer sentiment. • Slowdown in China economy will impact lubricants demand. • Local lubricants market is also expected to be slow-moving.

• Intensive trade, consumer promotions and brand awareness activities. Our • Enter into high value manufacturing strategy • The fan case project for Rolls-Royce is our first phase • Actively sourcing for more high value manufacturing projects

UMW Holdings Berhad 37 OTHERS

Others Oil & Gas-related companies that are not part of the listed company.

INDIA CHINA Onshore Drilling Services Manufacture of OCTG and line pipes Jaybee Drilling Pvt. Ltd. Shanghai BSW Zhongyou BSS Sichuan Petro-Pipe Co. (Qinhuangdao) Haihua 3 onshore drilling rigs Ltd. Petropipe Co. Petroleum Manufacture of OCTG and line pipes Ltd. Steel Pipe Ltd. United Seamless Tubulaar Pvt. Ltd. SSAW line LSAW and Electric pipes SSAW line Resistance Seamless steel pipes pipes Welded pipes

Oilfield Services OMAN Jiangsu Shanghai Onshore Drilling Services Tube-Cote Tube-Cote Arabian Drilling Services LLC Shuguang Petroleum Coating Co. Pipe Coating 7 onshore drilling rigs MALAYSIA Ltd. Co. Ltd. Oilfield Services Pipe coating UMW Synergistic Generation Sdn. Bhd. Total power solutions provider AUSTRALIA Supply of Oilfield Products Supply of Oilfield Products UMW Oilfield UMW Oilfield International (M) International (L) PFP Holdings Pty. Ltd. (offices in Malaysia, Sdn. Bhd. Ltd. China, Singapore, Taiwan, China) Trading Trading

UMW Holdings Berhad 39 Others

• Low oil price environment due to oversupply/low demand Challenges • Low demand for drilling rigs, pipes and related services • Slowdown in new pipeline projects in China

• Bidding for more contracts for onshore drilling rigs in Oman Our • Aggressive marketing activities in the Middle-east and US for OCTG and pipes strategy • Continue to nurture and enhance the value of these assets • Monitor the progress for potential value creation exercise

UMW Holdings Berhad 40 THANK YOU

Roza Shahnaz Omar S. Vikneshwaran

Director, Group Strategy Head, Investor, Media Relations & Sustainability

UMW Corporation Sdn. Bhd. Email: [email protected]

Telephone: +603 5163 5000

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.