CMS RESULTS PRESENTATION FOR THE SECOND QUARTER OF 2016

1 SEPTEMBER 2016 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 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 Today’s Presenters

Y D H 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 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 Contents

Section 1 Sarawak Overview

Section 2 CMS Overview

Section 3 Business Overview

Section 4 Financial Highlights

Section 5 Group Strategies & Going Forward

4 Section 1 Sarawak Overview

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 SARAWAK OVERVIEW FROM CMS’ PERSPECTIVE

External factors are affecting Sarawak’s growth levels

• Low commodity & oil prices • Weak RM • Bank lending constraints • Political sentiment on Malaysia • Global economic sluggishness

7 SARAWAK OVERVIEW FROM CMS’ PERSPECTIVE

Sarawak’s medium to long term economic growth:

• State’s economy is expected to grow by 4% for 2016; a drop compared to earlier projected GDP growth of 6.5% per annum, due to global environment and weaker oil & commodity prices

• SCORE - investment continues but slower with Baram dam currently stopped

• Both Sakura Ferroalloys and Pertama Ferroalloys commenced their operations in Samalaju in May and June 2016 respectively

• All packages for Pan Borneo Highway have been awarded; approx. 60% (RM13 bil) of the funding will be via a Sukuk Programme thru DanaInfra Nasional

• 2016 STATE BUDGET: RM5.97b for development & RM2.07b for OPEX

• 2017 STATE BUDGET: Likely to be per 2016 but with an even stronger focus on rural infrastructure development & rural economic activity

8 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

9 5 Growth Nodes of SCORE

Limbang 4. PROPOSED ACCESS ROAD TO LIMBANG HEP Samalaju Lawas Heavy and Energy Baram Smart City, Intensive Industries HEP, Oil Palm and Forest PlantationLIMBANG HEP SAMALAJU INDUSTRIAL PARK Services Hub & 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) Tanjung Manis BAKUN HEP 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. (990 MW) Anap 18km6. SAMARAKAN/SANGAN/ NG. 10. TG MANIS WATER SUPPLY MERIT/ ACCESS ROAD 159KM 12. JALAN HAB HALAL TG MANIS 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 Plantation, Agriculture SRI AMAN 3. PROPOSED ACCESS ROAD and Eco-Tourism BATANG AI 73KM TO BALEH HEP HEP 10 (100 MW) Section 2 CMS Overview

11 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

12 Company Snapshot

Sarawak’s largest company in Key Statistics infrastructure development

Issued Shares: 1074.38 mn  One of Sarawak’s largest listed company, with over 2,200 employees plus 1,691 in its 3 Market Share Price: RM3.79 metrics associate companies. Market Cap: RM4,071.9 mn as at 15  Incorporated in 1974; Listed on KLSE in 1989. August 2016 Historical PER: 16.7 x  Formerly a construction conglomerate BUT PBV ratio: 2 x TODAY, CMS has a sustainable and profitable portfolio of businesses focussing on Sarawak Revenue: RM1,788mn and SCORE. Income PBT: RM389mn statement Basic EPS: 23.31 sen Substantial shareholders Shareholding (FYE Dec 2015) % (as of 2 August 2016) (‘000) DPS: 4.5 sen Majaharta Sdn Bhd 134,775 12.54 Total assets: RM3,231mn Employees Provident Fund 122,589 11.41 Balance Sheet S/holders’ funds: RM2,018mn Lejla Taib 111,000 10.33 (FYE Dec 2015) NA per share: RM1.8 Dato Sri Sulaiman AB Rahman Taib 88,395 8.23 Net Cash per share (of RM0.50 each) RM0.30 Dato Sri Mahmud Abu Bekir Taib 88,200 8.21 ROE: 12.96% Sarawak Economic Development 60,896 5.67 Key ratios (FYE ROA: 7.68% Corporation Dec 2015) Public float: c. 35% Current ratio: 2.14 x 13 Experienced Management with Proven Track Record Centre

Datuk Syed Ahmad Alwee Alsree, Group Dato’ Richard Alexander John Curtis, Group Executive Director (12 years in CMS). Managing Director (10 years in CMS).

Tuan Syed Hizam Alsagoff, Group Chief Financial Officer (11 years in CMS).

Key Business Divisions

Goh Chii Bing, ED/CEO of Cement Division (24 years Dato Isaac Lugun, CEO of Samalaju Industries in CMS) (20 years in CMS).

Chong Swee Sin, CEO of Construction Materials Lim Jit Yaw, CEO of the Construction & Road & Trading Division (25 years in CMS). Maintenance Division (10 years in CMS)

Vincent Kueh Hoi Chuang, ED/CEO of the Property Mohd Zaid Zaini, Head of ICT Division (2 years in Development Division (4 years in CMS) CMS)

Goh Chii Yew, CEO of Samalaju Property Division (15 years in CMS). 14 Corporate Milestones

 Disposal of CMS  Signed JVA   Established as Roads and Acquired  Adopted current with MPA to Cement Pavement to UBG 50% non- name. develop a Manufacturers Bhd.  Disposal controlling of UBG RM2.00b stake in Sarawak.  Listed on  Acquired  Acquired 20% stake Bhd. phosphate SACOFA KLSE. RHB Bhd in KKB Engineering plant. Bhd.

1974 1978 1989 1994 1996 2001 2002 2007 2008 2009 2010 2011 2013 2014 2015 2016

 Rapid business  Restructuring of  Commenced  Disposed  Re-acquired  OM  MPA signed expansions via financial  Ceased manufacturing RHB Bhd for CMS Roads Materials both PPA & acquisition of services operation Ordinary Portland RM2.25b. and achieved EPC infrastructure business. of loss Pavement. commercial agreements Cement at making IT related  CMS’ futures & production Sarawak’s 1st companies businesses. stockbroking grinding plant. .  Diversification businesses into new merged with businesses. K&N’s in exchange for shares in K&N. Rationalisation of businesses to focus on key competencies in Sarawak & SCORE 15 Share Price Performance

High Low

2014 RM 4.72 RM 1.47 2015 RM 6.00 RM 3.87 16 2016 RM 5.36 RM 3.17 Section 3 Business Overview

17 548 560 600 523 515 Cement 400 272 258 200 97 120 103 Division

66 55 42 RM million RM 0 2012 2013 2014 2015 1H15 1H16

Revenue PBT

• 1H16 PBT lower than 1H15 due to:  11% lower sales volumes – bad weather (during 1Q16) & lack of major new projects  Costs linked to new grinding plant commissioning  Weak RM affected raw materials costs • PBT for 2Q16 has increased in comparison to 1Q16, due to higher volume of cement sales • Investment approved for a RM6.5 mil precast plant at Bintulu • Ready-mix sales have been increasing

18 700 599 645 600 Construction 500 393 400 328 281 Materials 300 254

RM million RM 200 76 108 100 41 55 48 48 & Trading 0 2012 2013 2014 2015 1H15 1H16 Division Revenue PBT

• PBT for 1H16 of RM48 million was sustained despite a lower revenue, due to better gross margins and lower oil prices

• Plans to further increase Sibanyis quarry’s capacity by 1.3m Mtpa by end-2017

• Enquiries flowing in for LBU materials supply but no P&L impact likely until 2017 as there will be delays

• Care will be needed for 3rd party LBU rates to ensure that credit terms are not abused

19 500 444 Construction 400 364 289 & Road 300 235 209 182 200 135

RM million RM Maintenance 81 95 84 100 47 41 0 Division 2012 2013 2014 2015 1H 15 1H 16 Revenue PBT

• Lower PBT was on the back of less construction works undertaken & higher costs for state road maintenance

• Awarded an RM1.36 bil Pan Borneo Highway package with JV partners Bina Puri in July 2016

• Contributions from Pan Borneo Highway is expected to be competitive, coming from the main construction package, materials supply & possible other sub-contract works

• Non-Roads Construction order book now at RM513.0 mil & cautiously optimistic to grow it further

20 120 114 100 90 75 Property 80 60 60 46 41 35 Development 40 24 31 20 RM million RM 20 6 7 Division 0 2012 2013 2014 2015 1H 2015 1H 2016 Revenue PBT (Kuching) *Note: Samalaju Properties & Samalaju Hotel have been reclassified to this Division starting 1 Jan 2016 • Profits remain resilient due to profit recognition of showroom sale & solid revenues from Samalaju Properties’ lodges • All current property sales projects at Bandar Samariang & The Isthmus are selling adequately due to good product quality & competitive pricing • Mydin Samariang opened in August 2016 & Water Theme Park in 2017 • The Isthmus gathering momentum with multiple projects underway • Divisional GDV projections till 2018 remain on track

21 • Lower commodity prices affected investor Property sentiment leading to output reductions & production start delays, thus affecting demand for the township Development properties & at the hotel Division • Lodges, reconfigured for longer term stays, (Samalaju) however exceeded budgets

• Sarawak Govt. signed a MoU with Hebei Xinwuan Steel Group and MCC Overseas Limited to conduct preliminary studies for the development of a USD3 billion steel plant in SIP

• New investors & project starts will happen in SIP – patience is required

22 200 182 172 155 153 150 119 ICT 93 100 85 80 85 67 45 53

50 Division RM million RM

0 2012 2013 2014 2015 1H15 1H16 Revenue PBT

• Sacofa was consolidated into CMS’ books as an associate beginning 1 November 2015

• Sacofa is expecting organic revenue growth on the back of bandwidth growth, rolling out of LTE sites & increased fiberisation within the State

• Strategic plan being developed to accelerate Sacofa’s growth

• PATNCI contribution to CMS for 2016 is expected to remain on a steady uptrend

23 Strategic • Revenues & PBT on steady uptrend Investments • End to End automation & systems enhancements lead to improved analytical agility & enriched customer experience • Strategic alliances regionally with China/HK & Japan including online broking • Loss making wealth management division downscaled

24 Strategic

KKB ENGINEERING Investments

• PATNCI decline from RM33.34 mil in 1H15 to (RM1.58 mil) in 1H16 due to steep fall in manufacturing business • Global economic slowdown & low O&G prices limit demand for fabrication • Petronas fabrication license aided by current focus on Sarawak O&G development & use of local companies offer longer term potential • KKB:WCT consortium was awarded a RM1.29 bil Pan Borneo Highway contract in July

25 SCORE - Background

 One of the 5 development corridors by the Federal and Sarawak State Government to turn Sarawak into a developed state.  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 26 Key Projects at Samalaju Industrial Park

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

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

Advanced stage to 1st & 2nd Phase: 440,000 MT Press Metal Aluminium Sep 2012 2 billion ramp up the 3rd Full Capacity: 760,000 MT Phase

AML (Pertama Commissioned - Manganese Ferroalloy 2016 Full Capacity: 434,000 MT 325 million Ferroalloy) June 2016

Asia Advanced Earthwork Metallic Silicon 2017 Full Capacity: 100,000 MT 203 million Materials completed

Sakura Ferro manganese & Silicon Ferro Manganese: 100, 000 MT Commissioned - 2016 328 million Ferroalloys Manganese Silicon Manganese: 60, 000 MT May 2016

Pre-earthwork Cosmos High quality solar and electronics 2017 25,000 MT 1.6 billion stage Chemicals grade polysilicon

Ferrosilicon Alloys (1st Phase) OM Materials Manganese Ferroalloys & Commission: 2H 2014 1st Phase: 308,000 MT 592 million (Slide 30) (Sarawak) Sintered Manganese Ore (2nd Phase)

Commission: 1H 2018 Phosphate Products: 500,000 MT MPA (Sarawak) Phosphate Products & Coke Full production: 2H 545 million (Slide 31) Coke: 450,000 MT 2018 27 OM MATERIALS (SARAWAK) Strategic • Recorded a loss in 1H16 due to exceptionally low commodity Investments prices, low demand & currency hedging losses

• Project loans being restructured to ease cash flows pending market upturn & full commissioning

• Plans being finalised to reconfigure smelters to focus on both ferrosilicon & manganese

• In short term, low commodity prices will continue to affect profitability but in the medium/long term, OMS’ 3 key strengths will bring it to sustainable profitability. These strengths are 1st quartile production cost positioning, its large scale & its location

• CMS confident in OMS over the long term which is why it acquired an additional 5% stake & subscribed in 2016 to RM110.0 mil of CPS

28 Strategic MALAYSIAN PHOSPHATE ADDITIVES (SARAWAK) Investments • Complex to be operational by Q1 2018; fully commissioned by Q4 2018 • The PPA contract for 150 MW of power was formalised during 1Q 16 • EPC agreement signed during 2Q 16 • Applied for UKAS grant incentive from the Federal Government • Parties now working towards Financial Close in 2H16

29 Section 4 Financial Highlights

30 Group Financials

2007 2008 2009 2010 2011 2012 2013 2014 2015 1H 2016

Revenue 871,793 893,033 874,600 943,476 1,012,609 1,203,565 1,416,841 1,693,898 1,788,008 745,723 (RM’000)

PBT (48,018) 150,570 98,526 118,796 178,715 226,906 294,894 341,452 388,596 65,669 (RM’000)

PATNCI 388,165 95,770 40,989 65,781 120,023 135,735 175,072 221,335 248,149 8,949 (RM’000)

S/holders’ funds 1,238,247 1,248,825 1,277,970 1,312,667 1,416,025 1,480,923 1,654,117 1,811,732 2,017,501 2,032,718 (RM’000)

ROE 37.15 / 7.70 / 3.24 5.08 8.80 9.37 11.17 12.77 12.96 0.44 (%) (2.27) 4.51

Borrowing 678,303 649,767 534,236 394,586 215,747 89,826 100,102 104,796 163,678 278,103 (RM’000)

Gearings ratio 0.55 0.52 0.42 0.30 0.15 0.06 0.06 0.06 0.08 0.14 (times)

52.56/ EPS (sen) 117.82 29.07 12.44 19.97 36.43 41.39 21.42 23.31 0.83 17.46

Cash (company) 626,190 322,086 404,726 753,990 625,542 493,129 579,392 674,600 256,881 219,228 (RM’000)

31 Group Key Financials 2012 – 1H 2016

2,000 Revenue PBT & PBT Margin 1,800 500 21.8% 25.0% 20.8% 20.4% 1,600 18.9% 18.6% 1,400 400 20.0% 1,200 300 15.0% 1,000 1,788 8.8% 800 1,674 200 10.0% RMmillion 389 1,417 RMmillion 341 600 1,204 295 100 227 5.0% 400 868 746 162 200 66 0 0.0% 0 2012 2013 2014 2015 1H15 1H16 2012 2013 2014 2015 1H15 1H16 PBT PBT Margin Revenue ’11 - ’15 CAGR = 15.3% PBT ’11- ’15 CAGR = 21.6%

2,500 0.16 12.77% 12.96% 0.14 50 11.17% 13% Balance Sheet 0.14 9.37% 11% 2,000 40 0.12 9% sen 30 0.1

7% 1,500 0.08 RM RM 20 41.39 5.32% 5% 0.08

0.06 times 3% 2,033 0.44% 1,000RMmillion 2,018 21.42 23.31 0.06 1,812 0.06 0.06 10 17.52 1,654 9.30 1% 1,481 0.83 0.04 0 -1% 500 2012 2013* 2014 2015 1H15 1H16 830 524 614 325 0.02 EPS ROE 1H ROE 90 100 105 164 272 278 *Adjusted for share split & bonus issue in June 2014 - 0 2012 2013 2014 2015 1H 2016 S/holders’ funds Cash Borrowing Gearings EPS ’11 - ’15 CAGR = 17.7% 32 Revenue Breakdown 2012 – 1H 2016

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

2,000 2% 2% 1% 1% Others 100% 0% 32 3% 2% 1% 1% 0% 1,800 5% 4% 6% 34 0 6% 8% 7% 17 90% - 90 5% 15 5% 1,600 114 Samalaju 24% Development 80% 22% 25% 24% 20% 1,400 32 444 20% 70% 113 364 Property 33 1,200 75 Development 72 60% 60 289 23% 1,000 34% 18 Construction & 50% 28% 36% 36% 38% 235 0 645 Road Maintenance 599 5 11 800 35 0 40% 393 209 41 281 Construction 600 182 Materials & 30% Trading 328 20% 43% 400 254 Cement 36% 33% 31% 31% 35% 523 515 548 560 200 10% 272 258 0% - 2012 2013 2014 2015 1H15 1H16 2012 2013 2014 2015 1H15 1H16

33 PBT Breakdown 2012 – 1H 2016

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

400 34 5% 9% 9% 2 Associates 11% 3% 11% 20 1% 350 5% 17 85% 11% 13% 9 11% 4% Others 300 46 27 135 29% 0% 65% 25% 35% 31 Samalaju 32% 11% 250 Development 36% 25 84 62% Property 200 24 95 Development 45% 22% 30% 18 19% 76 108 0 28% 150 81 6 Construction & Road 18% 7 Maintenance 73% 55 47 41 25% 100 Construction 41 48 Materials & Trading 35% 33% 34% 120 48 29% 27% 50 97 103 Cement 63% 66 5% 55 42 -5% -3% -3% -4% -1% - (10) (11) (1) (11) (14) (11) (23) -7% -35% (49) -74% (50) -15% 2012 2013 2014 2015 1H15 1H16 2012 2013 2014 2015 1H15 1H16

34 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 RM 42.53 mil RM54.13 mil 40.9 45 16 RM 37.08 mil 40 30.9 14 30.9 31.3 35 12 30

10 25 RM 90.42 mil 20 Ratio (%)

8 20

DPS DPS (Cent) Payout 6 15 RM48.35 mil Net 4 10

2 5 15 17 17 8.5 4.5 0 0 2011 2012 2013 2014* 2015* Ordinary Dividend Net Payout Ratio (%)

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

* Based on share of RM0.50 each 35 Section 5 Group Strategies & Going Forward

36 Group Strategies And Going Forward

37 Group Strategies and Going Forward

Riding on the Sarawak Growth Story Strategies

 Malaysian GDP growth for 2016 & 2017 projected  Investment in projects: to be 4.4% & 4.5% respectively . Hurdle rate / IRR: At least 18%; . Scaleable / long term sustainability;  Sarawak is more insulated from external . Quality partners / JVs; downturns & turmoil due to the long term nature . Raw materials processing / manufacturing and/or of its economic drivers in SCORE infra / services focus.  Maximise our core business divisions & our Strategic  Sarawak’s GDP grew by 5% in 2015 & is projected Investments to take advantage of Sarawak’s growth to grow by 4% in 2016  An indispensable ally to its State’s development regardless of politics – thru professionalism and Be the best proxy investment for Sarawak’s neutrality accelerating growth via:  Be known for our Corporate Governance, Sustainability & Management Competency  Energy intensive industry investments; and  Acquire expertise / knowledge for regional expansion outside Sarawak later  consequential infrastructure and related services required across the State.  To maintain a moderate risk profile

38 Conclusions

• Performance during 1H16 largely due to challenging market & operational conditions • Group’s core Divisions businesses continue to remain resilient even during this period • The continued focus towards a development oriented State budget bodes well for CMS’ core Divisions • CMS’ core Divisions are also well positioned to benefit from the Federal Government’s RM16 billion Pan Borneo Highway project • CMS remains confident on achieving an acceptable performance for 2016 with performance levels rising again from 2017 39 THANK YOU.

ANY QUESTIONS?

40