BEYOND BOUNDARIES UMW HOLDINGS BERHAD CORPORATE PRESENTATION

JANUARY 2020

UMW HOLDINGS BERHAD OUR BUSINESS DIVERSIFIED PORTFOLIO

AUTOMOTIVE EQUIPMENT MANUFACTURING LANDBANK & ENGINEERING

• Manufacture • Distribution • Manufacture of • Unlocking value • Assembly • Trading fan case of our vast landbank in • Distribution • Leasing • Manufacture of automotive Serendah • Sales & service • After-sales components service • Blending & distribution of lubricants

UMW HOLDINGS BERHAD 2 OUR STRENGTH LEADER IN OUR CORE BUSINESS SEGMENTS

AUTOMOTIVE EQUIPMENT MANUFACTURING & ENGINEERING

• Leader in the Malaysian • Distribute Komatsu heavy • First Malaysian company to automotive industry with equipment in 5 countries in manufacture and assemble 49.1% market share (2018) the Asia-Pacific region. fan cases for Rolls-Royce as through , Lexus and a Tier 1 supplier. marques. • Hold more than 50% market share for Toyota forklift in • Manufacture and export and Singapore; have KYB shock absorbers to 38 operations in 5 countries in countries from Malaysia. Asia-Pacific.

UMW HOLDINGS BERHAD 3 OUR REVENUE AND PBT CONTRIBUTION SEGMENTAL BREAKDOWN

2014 2015 2016 2017 2018

1% 2% 6% 5% 6% 7% 6% 7% 7% 7% 13% 13% 14% 20% 13% 13% 14% 21% 22% 21%

86% 81% 81% 78% 81% 81% 79% 72% 71% 72%

REVENUE PBT REVENUE PBT REVENUE PBT* REVENUE PBT* REVENUE PBT* Automotive Equipment Manufacturing & Engineering

* Excluding Aerospace sub-segment (within Manufacturing & Engineering) which was loss-making due to start-up operations

UMW HOLDINGS BERHAD 4 OUR INTERNATIONAL PRESENCE 12 KEY MARKETS

Automotive Myanmar Equipment Manufacturing & Engineering

WORKFORCE

Seychelles 18,342 China

Vietnam

Malaysia

Papua AA2 New Guinea Singapore CREDIT RATING Sri Lanka Fiji

RAM Ratings Indonesia

Mauritius Brunei

* Key markets and Workforce are inclusive of UMW and Perodua

UMW HOLDINGS BERHAD 5 OUR SHAREHOLDERS AS AT 31 DECEMBER 2019

PNB 60.55 . Permodalan Nasional Berhad & PNB Managed Unit Trust Funds, 60.55% RM5.2b

EPF 31/12/2019 Foreign Shareholders 11.43 Market Capitalisation . Employees Provident Fund Board, . Foreign Shareholders, 5.31% 11.43% 5.31

15.80 6.91

Other Local Shareholders KWAP . Other Local Shareholders, 15.88% . Kumpulan Wang Persaraan (Diperbadankan), 6.91%

Bloomberg ticker UMWH:MK

Total number of shares 1,168,293,932

FTSE4Good Bursa Malaysia Index constituent Bursa Malaysia Listing sector Main Market, Consumer Products & Services

UMW HOLDINGS BERHAD 6 AUTOMOTIVE SEGMENT

UMW HOLDINGS BERHAD AUTOMOTIVE SEGMENT STRUCTURE

51% 38%

Investment holding, UMW Toyota Motor Perusahaan Otomobil Kedua Investment holding and importation and distribution provision of management and Sdn. Bhd.* of Toyota vehicles and Sdn. Bhd.** administrative services related parts Marketing and distribution of 100% Perodua Sales motor vehicles, related spare 100% Assembly Services Assembler of Sdn. Bhd. parts and other related activities Sdn. Bhd. vehicles 49% Investment holding and Perodua Auto provision of management and 100% Automotive Industries Manufacturer and Corporation Sdn. Bhd.*** administrative services supplier of exhaust Sdn. Bhd. systems 51% Manufacturer and assembler of Perodua Manufacturing motor vehicles and other related Manufacturer of car 65% Toyota Boshoku 49% activities seats, door trims, Sdn. Bhd. UMW Sdn. Bhd. headlining, etc. 51% Manufacturer and assembler of Perodua Global Manufacturing motor vehicles and other related 49% Sdn. Bhd. activities Manufacturer and dealer in 49% Perodua Engine Manufacturing component parts including 51% Sdn. Bhd. engines, couplings and 30% UMW Toyotsu Motors Sales and service of Toyota components and Lexus vehicles and Sdn. Bhd. parts 30% Ingress Technologies Manufacturer of complete door Sdn. Bhd. assemblies and press parts 30% Toyota Capital Malaysia Hire purchase financing of Toyota customers Sdn. Bhd. 51% Motor Co., Ltd 49% Daihatsu Perodua Engine Manufacturer of engine and Manufacturing Sdn. Bhd. engine components for Energy Efficient Vehicles

** 4.2% Mitsui & Co., Ltd ******* 41% Daihatsu Motor Co., Ltd *39% Toyota Motor Corporation 2.8% Mitsui & Co., ( Asia Pacific) Pte Ltd UMW6% HOLDINGS Mitsui Co., Ltd BERHAD 10% Toyota Tsusho Corporation 8 5% Daihatsu (Malaysia) Sdn Bhd 4% Mitsui & Co., ( Asia Pacific) Pte Ltd UMW GROUP MARQUES AND MODELS

COMPLETELY BUILT-UP (CBU)

LS ES NX RX LX LC COMPLETELY KNOCKED-DOWN (CKD)

VIOS YARIS HILUX INNOVA FORTUNER RUSH HIACE COMPLETELY BUILT-UP (CBU) THAILAND INDONESIA JAPAN

CAMRY COROLLA C-HR AVANZA ALPHARD VELLFIRE HARRIER

COMPLETELY KNOCKED-DOWN (CKD)

MYVI AXIA BEZZA ARUZ ALZA

UMW HOLDINGS BERHAD 9 TOTAL INDUSTRY VOLUME (TIV) MALAYSIA AUTOMOTIVE ASSOCIATION (MAA)

Unit sales % Growth Year-on-Year

655,793 666,465 666,674 627,753 605,156 600,123 598,714 600,000 580,124 576,625 548,115 536,905 11M19: 12.5% 12.7% 549,445 units

4.6% 4.5% 3.8% 1.6% 0.0%

-2.0% -0.8% -0.6%

-13.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019T

. Low industry growth due to no end-of-life policy, no scrap policy, high car ownership in Malaysia . MAA forecasted a marginal TIV growth in 2019, with a sales target of 600,000 units. As at November 2019, TIV stood at 549,445 units.

UMW HOLDINGS BERHAD 10 UNIT SALES UMW TOYOTA MOTOR - TOYOTA AND LEXUS MODELS

Unit sales Market Share 18.6% 17.0% 15.3% 15.6% 15.2% 14.8% 14.1% 14.4% 12.2% 11.2% 11.1% 106,622 101,839 103,636 95,861 91,990 88,662 92,521 82,089 70,445 72,000 65,110 66,562 11M19: 61,842 units

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019T

. Importation of CBU vehicles and CKD components are transacted in US Dollar. . UMWT launched the all-new Vios, Yaris and Corolla in 2019. . Vios and Yaris are produced at UMWT’s new Bukit Raja plant whilst the Corolla is a CBU model from Thailand. Vios and Yaris share the same platform, with local content above 80%.

UMW HOLDINGS BERHAD 11 UNIT SALES PERODUA – 38%-OWNED ASSOCIATE

Unit sales Market Share 38.0% 35.7% 35.5% 31.1% 31.2% 32.0% 30.5% 30.0% 30.1% 29.9% 29.3% 227,243 235,000 213,307 207,110 196,071 195,579 204,887 11M19: 188,641 179,989 189,137 221,984 units 167,393 166,736

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019T

. Perodua maintained its No.1 position in overall market share for the 14th consecutive year in 2019. . The all-new 7-seater SUV, Perodua Aruz was launched in January 2019. Enhanced was introduced in September 2019. . Exports to 7 countries - Indonesia, Singapore, Mauritius, Fiji, Sri Lanka, Brunei and Seychelles.

UMW HOLDINGS BERHAD 12 AUTOMOTIVE INDUSTRY – MARKET SHARE YEAR-TO-DATE NOVEMBER 2019

• UMW Group sold 283,826

2018 units in 11M19 with a market 227,243 38.0% share of 51.7% (2018 – 49.1%) 2018 40.4% 66,562 Perodua 11.1% 221,984 11.3% UMW Toyota 61,842 Other Carmakers’ Sales and Market Share

Brand 11M19 2018 48.3% Units Market Units Market Share % Share % Others Honda 78,183 14.2 102,282 17.1 265,619 Proton 89,066 16.2 64,744 10.8 Nissan 19,115 3.5 28,610 4.8 Mazda 10,750 2.0 16,038 2.7 Other brands 68,505 12.4 93,235 15.6 2018 304,909 Total TIV 549,445 598,714 50.9%

Source: Malaysian Automotive Association

UMW HOLDINGS BERHAD 13 AUTOMOTIVE INDUSTRY OUTLOOK AUTO SALES GROWTH LARGELY DEPENDS ON THE STATE OF THE ECONOMY

INDICATORS

Real private consumption growth (% y-o-y) Private consumption have normalized towards its long- 8.9 8.4 7.9 7.6 7.8 term average trend after the exceptional period during 7.1 6.9 6.6 7.0 the GST-free phase of June to August 2018.

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Malaysia TIV 2018-2020F (units) 612,000 Sustained private consumption growth could underpin 600,000 598,714 TIV growth in 2020

2018 2019F 2020F

Source: MAA

UMW HOLDINGS BERHAD 14 UMW TOYOTA MOTOR OPTIMISE COSTS WHILE ELEVATING REVENUE

Improve Cost optimisation Competitiveness

1 Expansion of model line-up 1 Higher localisation

2 Attractive financing packages – 2 Higher automation in partnership with Toyota Capital 3 Highly-efficient Bukit Raja plant 3 Collaboration with dealers to boost after-sales 4 Network rationalisation

• 4 new SUV models 2020 • Market share of 12%

UMW HOLDINGS BERHAD 15 UMW TOYOTA MOTOR ATTRACTIVE STEP-UP FINANCING PACKAGES

TOYOTA EZ BELI CAMPAIGN • 9-year financing plan – 3-tier step-up • Currently for Yaris, Vios, Avanza and Hilux – with plans for other models • Mainly to target first time buyers

UMW HOLDINGS BERHAD 16 PERODUA LEVERAGE ON EXCELLENT BRAND PERCEPTION FOR ENTRY-LEVEL SEGMENT

1 Strategic planning of future car 2 Ride on Perodua’s success in the models entry-level segment • To ensure it can compete effectively against • Perodua introduced an all-new SUV model, its direct competitors Aruz in January 2019

• Enhanced Perodua Axia was introduced in September 2019 • Facelift to be launched in early 2020

UMW HOLDINGS BERHAD 17 FINANCIAL HIGHLIGHTS AUTOMOTIVE

11,498.1 10,766.0 10,722.0 10,023.0 8,451.0 8,972.2 8,946.7 Revenue (RM million)

2012 2013 2014 2015 2016 2017 2018

1,796.8

1,413.5 1,475.3 PBT * 860.9 550.0 (RM million) 496.9 446.1

2012 2013 2014 2015 2016 2017 2018

* PBT includes contribution from Perodua

UMW HOLDINGS BERHAD 18 EQUIPMENT SEGMENT

UMW HOLDINGS BERHAD EQUIPMENT SEGMENT DISTRIBUTOR OF GLOBALLY-KNOWN BRANDS IN SOME PARTS OF THE REGION

• Agriculture HEAVY • Construction EQUIPMENT • Forestry • Mining

Material handling • Industrial and manufacturing • Industrial cleaning- . food and INDUSTRIAL beverage EQUIPMENT Marine & Power . material handling . logistics • Industrial and marine power solutions

UMW HOLDINGS BERHAD 20 HEAVY EQUIPMENT STRUCTURE

UMW Komatsu Heavy Equipment Sdn Bhd

2018 Revenue contribution UMW Corporation Komatsu Ltd (74%) (26%) Singapore, 3% PNG, 17% Principal-distributorship Malaysia, relationship between UMW and Oct 2018 42% Komatsu began

Joint-venture agreement Myanmar, between UMW and Komatsu 38% 1965 begins

Also distributes:

Since 1965 Since 1979 Malaysia Myanmar Singapore Papua New Guinea Since 1996 Brunei

UMW HOLDINGS BERHAD 21 INDUSTRIAL EQUIPMENT MATERIAL HANDLING

Toyota Forklift Franchise – UMW is one of the Top 10 distributors globally

Malaysia China : Since 1965 Shanghai, Singapore Zhejiang

Vietnam

Brunei 2018 Revenue contribution

China, 3% Strong market leadership position Vietnam, 12% . No. 1 position in Malaysia since 1972. Toyota forklift maintained its 50% market share in Malaysia’s material handling equipment business. Malaysia, 46% . Under the 2018 Toyota Material Handling International (TMHI) Award Programme, UMW Industries was awarded the Diamond Club Singapore, Recognition, President’s Award (Gold) and Vision 2020 Award. 39% . Have ventured into leasing of Toyota forklifts – about 9,000 units in the region.

UMW HOLDINGS BERHAD 22 INDUSTRIAL EQUIPMENT MARINE & POWER

Compressors

Generators

Marine Engines

Oil spill equipment

UMW HOLDINGS BERHAD 23 EQUIPMENT INDUSTRY OUTLOOK POCKETS OF OPPORTUNITIES

HEAVY EQUIPMENT INDUSTRIAL EQUIPMENT

• The higher allocation in development expenditure • The US-China trade conflict could provide opportunities during Budget 2020 could accelerate implementation for ASEAN countries, especially in the manufacturing of projects sector  Approved manufacturing investments in Malaysia • Singapore’s healthy pipeline of public and private surged to RM33.1 bn in 1H19 sector projects should drive the construction sector recovery and support sales of heavy equipment in the • The Singapore’s Ministry of Trade & Industry expects the country manufacturing sector to return to positive growth in 2020

Construction sector growth in Malaysia Approved manufacturing investments in I (% y-o-y) I Malaysia (RMbn) N N 33.1 M 2.6% M D Y 0.3% 0.5% D Y 19 I I C -1.5% C 4Q18 1Q19 2Q19 3Q19 1H18 1H19 A A Source: MIDA T Construction in Singapore (Real growth) T Manufacturing in Singapore (Real growth) O 2.7% 2.8% 2.9% O 4.6% S S -0.4% R -1.2% R -1.7% S G S G -3.3%

4Q18 1Q19 2Q19 3Q19 4Q18 1Q19 2Q19 3Q19

UMW HOLDINGS BERHAD 24 EQUIPMENT SEGMENT SECTORAL SHIFT; EXPANSION OF PRODUCTS AND SERVICES

HEAVY EQUIPMENT INDUSTRIAL EQUIPMENT 1 Focus on more urbanised sectors – construction & mega infrastructure 1 Further expansion into the leasing Projects projects Est. cost Projects Est. cost Penang Transport Master Plan RM32bn Sarawak Coastal Highway RM5bn business model

Klang Valley MRT Line 3 (MRT3) RM20bn Sarawak Second Trunk Road RM6bn

KL-Singapore High Speed Rail RM20bn Sarawak Water Grid Phase 1 RM8bn

East Coast Rail Link sub-contracts RM18bn Labuan Bridge RM4bn

Pan Borneo Highway Sabah RM13bn Johor BRT RM3bn Bandar Malaysia infrastructure RM21bn Kota Kinabalu Water Supply Scheme RM3bn Ride on the urbanisation of Source: Affin-Hwang Research 2 Vietnam 2 Leverage on Papua New Guinea’s gold mining and construction sectors 3 Expand product line-up 4 Provision of value-added services 3 Diversify product base Implement extended warranty programme 5 and maintenance service contract

6 Venture into leasing business model and equipment-as-a-service

UMW HOLDINGS BERHAD 25 FINANCIAL HIGHLIGHTS EQUIPMENT

2,138.5 1,882.6 1,705.5 1,767.2 1,458.9 1,539.6 Revenue 1,382.8 (RM million)

2012 2013 2014 2015 2016 2017 2018

218.2 226.5 195.8 183.5 160.1 145.6 PBT 141.8 (RM million)

2012 2013 2014 2015 2016 2017 2018

UMW HOLDINGS BERHAD 26 MANUFACTURING & ENGINEERING SEGMENT UMW HOLDINGS BERHAD MANUFACTURING & ENGINEERING SEGMENT KEY PRODUCTS

Contract Manufacturer for Aerospace Component Aero Engine Fan Cases

Shock Absorbers

Auto Components Shock Absorbers Auto parts • Oil Filters, Eco Filters & Fuel Filters Cylinder Head Cover Motorcycle suspension units • Air Filters & Cabin Filters • Hydarulic & ATF Filters • Brake pads Engineering plastic • Brake Fluid & Long-life • Cam Cover or Cylinder Head Cover • For both OEM and REM markets. Radiator Coolant • Air Intake Manifold • Auto Transmission Fluid • Charcoal Canister • Export to more than 38 countries • Integrated Air Cleaner Assembly from Malaysia.

Premium range of Repsol lubricants for the automotive industry Lubricants across Asia and Southeast Asia UMW’s proprietary Region lubricant brand.

UMW HOLDINGS BERHAD 28 MANUFACTURING & ENGINEERING SEGMENT MANUFACTURE OF AERO ENGINE FAN CASES

Component Part Manufacturing for RR’s Most Advanced UMW Aerospace Sdn Bhd Passenger Aircraft Engines

• UMW is the 1st Malaysian Tier 1 Supplier to Rolls-Royce - single-source supplier of fan cases for Trent 1000, with production for Trent 7000 engines expected in 4Q20 • Long-term contract of 25+5 years; signed in 2015 • The manufacturing plant is located in Serendah,

Milestones Part of Rolls-Royce’s Asian Supply Chain

Single Source Final Assembly of the Trent 1000 and Trent 29 Nov 2017 2019 7000 engines in Singapore Delivery of the first fan case Ramp-up production

Delivered more than 150 units

2020 – Production ramp-up to continue

UMW HOLDINGS BERHAD 29 MANUFACTURING & ENGINEERING SEGMENT INDUSTRY OUTLOOK

AEROSPACE AUTO COMPONENTS • Production ramp-up is progressing well as per • Local indicators suggest stable demand for scheduled orders from Rolls-Royce. auto parts in Malaysia, underpinned by • Production of Trent 7000 fan case scheduled to healthy private consumption. commence in 4Q20. • Growth in the automotive industry will • Combine production of Trent 1000 and Trent sustain demand for lubricants, auto 7000 fan cases are expected to drive the components. volume beyond break-even in 2020. Sale of Motor Vehicle Parts & Accessories in Malaysia (%, y-o-y) 7.5

4.4 4.6 4.3 4.5 3.5

2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Source: DoSM

UMW HOLDINGS BERHAD 30 MANUFACTURING & ENGINEERING SEGMENT EXPANDING AND STRENGTHENING OPERATIONS

Commencement of KYB-UMW’s plant expansion and modernisation & 01 improve synergies with UMWT and Perodua

Enhance position in aerospace business & entry into other High-Value 02 Manufacturing sectors

03 Continuous margin improvement efforts

04 Expansion of dealership network

05 Development of our own products

UMW HOLDINGS BERHAD 31 FINANCIAL HIGHLIGHTS MANUFACTURING & ENGINEERING

843.2 735.5 725.1 707.5 680.7 645.1 601.5 Revenue (RM million)

2012 2013 2014 2015 2016 2017 2018

24.6 21.5 14.8 16.8 9.9 PBT

(RM million) -17.7

-39.2 2012 2013 2014 2015 2016 2017 2018

Revenue – exited automotive components manufacturing business in India in late 2015. PBT – Losses in automotive components manufacturing business in India (2013); Start-up losses at Aerospace sub-segment (2017)

UMW HOLDINGS BERHAD 32 LANDBANK IN SERENDAH

UMW HOLDINGS BERHAD UNLOCKING VALUE OF OUR ASSETS MONETISING LONG-HELD ASSETS

861 acres Close to 40 acres of UMW’s land in of land in Serendah Serendah have been taken up so far Company Acreage

UMW Aerospace 24.0 acres

Multi-Code Electronics Industries (M) 8.25 acres Bhd Private local company 5.3 acres

T7 Kilgour Sdn Bhd 2.0 acres

We are actively negotiating with interested parties and hope to close some deals soon. UMW’s operations in Shah Alam to move to Serendah within the next few years.

UMW HOLDINGS BERHAD 34 THANK YOU

Nik Azlan Bin Nik Abdul Aziz Group Chief Financial Officer UMW Corporation Sdn. Bhd.

S. Vikneshwaran General Manager Group Investor & Media Relations Email: [email protected] Telephone: +603 20252104

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 Berhad30th. Any recommendation May 2019 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 UMW HOLDINGS BERHAD information a prospective investor may require.