Beyond Boundaries UMW Holdings Berhad Corporate Presentation December 2017

1 Introduction

2 OUR JOURNEY Enhancing our capabilities

Laying the building blocks for excellence

Founded in 1917 Automotive Assembly Tier 1 Supplier

Bicycle repair shop 35 years with 24 years with

Fan Case Manufacturer Rolls-Royce

3 OUR SHAREHOLDERS As at 29/12/2017

PNB . Permodalan Nasional Berhad/ PNB Managed Unit Trust Funds, 58.32%

58.32%

RM 6.1b EPF 29/12/2017 Foreign Shareholders

. Employee Provident Fund Board, Market Capitalisation . Foreign Shareholders, 11.14% 11.64% 11.64%

11.14% 10.72% 8.18%

Other Local Shareholders KWAP

. Other Local Shareholders, 10.72% . Kumpulan Wang Amanah Pekerja, 8.18%

4 OVERVIEW OF OUR BUSINESSES

01 Automotive 02 Equipment 03 M&E

• Manufacture • Distribution • Blending & distribution • Assembly • Trading of lubricants • Distribution • After-sales • Manufacture service • Sales & of service automotive components • Manufacture of fan case

04 Others

Oil & Gas - Unlisted • Manufacture • Land rigs • Trading

5 INTERNATIONAL PRESENCE 10 countries Automotive Equipment Myanmar Manufacturing & Engineering Oil & Gas

China

Vietnam

10,374 . Employees Papua New Guinea

Singapore

AA2 Australia . RAM Indonesia . Credit Rating Oman India

6 Our Automotive business

7 UMW AUTOMOTIVE SEGMENT

51% 38%

Investment holding, Investment holding and UMW Toyota Motor importation and distribution Perusahaan Otomobil Kedua provision of management and Sdn. Bhd.* of Toyota vehicles and Sdn. Bhd.** administrative services related parts

100% Sales Marketing and distribution of motor vehicles, related spare parts and Sdn. Bhd. other related activities

49% Perodua Auto Investment holding and 100% provision of management and Assembly Services Assembler of Corporation Sdn. Bhd.*** administrative services vehicles Sdn. Bhd. 51%

Perodua Manufacturing Manufacturer and assembler 100% Automotive Industries Manufacturer and 49% of motor vehicles and other supplier of exhaust Sdn. Bhd. related activities Sdn. Bhd. systems 51% Manufacturer and assembler Perodua Global Manufacturing of motor vehicles and other 65% 49% Toyota Boshoku Manufacturer Sdn. Bhd. related activities UMW Sdn. Bhd. of car seats 49% Manufacturer and dealer in Perodua Engine Manufacturing component parts including 30% UMW Toyotsu Motors Sales and service of 51% Sdn. Bhd. engines, couplings and Toyota and transmission components Sdn. Bhd. vehicles and parts 30% Ingress Technologies Manufacturer of complete door assemblies and press parts 30% Toyota Capital Malaysia Hire purchase Sdn. Bhd. financing of Toyota Sdn. Bhd. customers 49% 51% Daihatsu Motor Co., Ltd Daihatsu Perodua Engine Manufacturer of engine and engine components for Energy Efficient Manufacturing Sdn. Bhd. Vehicles

* 39% Toyota Motor Corporation ** 20% Daihatsu Motor Co., Ltd 4.2% Mitsui & Co., Ltd ***41% Daihatsu Motor Co., Ltd 10% Corporation 20% MBM Resources Bhd 2.8% Mitsui & Co., ( Asia Pacific) Pte Ltd 6% Mitsui Co., Ltd 8 10% PNB Equity Resource 5% Daihatsu (Malaysia) Sdn Bhd 4% Mitsui & Co., ( Asia Pacific) Pte Ltd Corporation Sdn Bhd TOTAL INDUSTRY VOLUME (TIV)

TIV % Change Over Previous Year RHS

Total Industry Volume – Unit Sales LHS

Unit sales 1,200,000 25.0% 12.5% 12.7% Growth 4.6% 4.5% 15.0% 1,000,000 1.6% 0.0% -2.0% -0.8% 5.0% -13.0% - 5.0% 800,000 666,465 666,674 627,753 655,793 -15.0% 605,156 600,123 580,124 600,000 548,115 536,905 521,907 -25.0% -35.0% 400,000 -45.0% -55.0% 200,000 -65.0% 0 -75.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 11M2017

• Lower sales in 2016 were mainly due to weak consumer sentiment and stringent lending guidelines imposed by the financial institutions.

• Target for 2017 is 590,000 units (+1.7% growth)

UMW Holdings Berhad 9 LEXUS & TOYOTA

UMW Toyota Motor Market Share Of TIV RHS

UMW Toyota Motor Unit Sales LHS

200,000 18.6% Unit sales 20.0% 17.0% Market Share 18.0% 15.6% 15.3% 15.2% 14.8% 14.1% 14.4% 16.0% 150,000 12.1% 14.0% 11.2% 12.0% 101,839 106,622 103,636 95,861 100,000 91,990 88,662 92,521 10.0% 82,089 8.0% 65,110 63,100 6.0% 50,000 4.0% 2.0% 0 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 11M2017

• The all-new and were launched in May 2016. This was followed by 4 new models and 3 improved models in the second half of 2016. • Vios was the top selling model in 2016 with 38% of total Toyota sales. Hilux was second with 28%. • Importation of CBU cars and CKD components are transacted in US Dollar.

UMW Holdings Berhad 10 PERODUA

Perodua Market Share Of TIV RHS

Perodua Unit Sales LHS

Unit sales 350,000 40.0% Market Share 35.7% 35.4% 32.0% 35.0% 300,000 30.5% 31.1% 31.2% 30.0% 30.1% 29.9% 29.3% 30.0% 250,000 213,307 207,110 196,071 25.0% 188,641 189,137 195,579 200,000 179,989 184,707 167,393 166,736 20.0% 150,000 15.0% 100,000 10.0% 50,000 5.0%

0 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 11M2017

• 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. • The all-new Perodua Myvi was launched on 16 November 2017. • Target for 2017 is 202,000 units.

UMW Holdings Berhad 11 UMW GROUP’S MARKET SHARE Units & Market Share (%)

• UMW companies sold 272,220

2015 units in 2016 with a market 213,307 2015 share of 47%. 32.0% 95,861 14.4% 35.7% Perodua 11.2% 207,110 UMW Toyota 65,110 Brand 2016 2015

Units Market Units Market Share % Share %

Others Honda 91,830 15.8 94,902 14.2 307,904 Proton 72,290 12.5 102,174 15.3 Nissan 40,706 7.0 47,235 7.1 53.1% 12,493 2.2 14,325 2.1 Hyundai, Kia 9,470 1.6 10,960 1.6 Others 81,115 14.0 87,910 13.3 Total 580.124 666.674 2015 357,506 53.6%

12 Our Equipment business

13 EQUIPMENT SEGMENT

Heavy Equipment Industrial Equipment Marine & Power Equip

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 beverage, material handling and logistics . Industrial and marine power solutions

14 HEAVY EQUIPMENT

Myanmar Malaysia Since 1965 Singapore 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

15 INDUSTRIAL EQUIPMENT

Toyota Forklift Franchise

China Vietnam Shanghai, Malaysia Zhejiang

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.

16 MARINE AND POWER EQUIPMENT

CompAir Honda Air Compressor Power Products

Ingersoll Rand Mitsubishi Centrifugal Marine Engines Compressor

GE Mitsubishi Reciprocating Gen-sets Compressor

17 Our Manufacturing & Engineering business

18 KEY PRODUCTS

Aerospace Component Lubricants

Lubricants & Fan Fluids Case Lubricants & Fluids (China)

Fluids & Chemicals

Auto Components

Shock Automotive Absorbers Components & Power Steering

19 MANUFACTURE OF AERO ENGINE FAN CASES

UMW Aerospace Sdn Bhd

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

UMW is the 1st Malaysian Tier 1 Supplier to Rolls- Royce

• The contract is for the manufacture of fan cases for the Trent 1000 aero engines for 25+5 years (Trent 7000 engines later) for Rolls-Royce.

• 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 • UMW be the only supplier (‘single-source supplier’) for Single Source Final Assembly of the Trent 1000 fan cases for both the engines. and Trent 7000 engines in Singapore • The manufacturing plant is located in Serendah, Selangor.

• Successfully delivered the first fan case on 29 November 2017.

20 Others

21 OIL & GAS (UNLISTED) Companies that are not part of the listed segment

No of remaining assets

. Jaybee Drilling Pvt Ltd . UMW Sher (L) Ltd Drilling & . Arabian Drilling Services – CEASED OPERATIONS 3 Exploration

. Shanghai BSW Petro-pipe Co. Ltd . Zhongyou BSS(Qinhuangdoa) Petropipe Co. Ltd OCTG & Line . Oil Country Tubular Limited Pipe 5 . United Seamless Tubulaar Pvt Ltd . Tubulars International Pte Ltd

. UMW Fabritech Sdn Bhd -DIVESTED . UMW Coating Technologies (Tianjin) Co. Ltd Fabrication 1

. UMW Synergistic Generation Sdn Bhd - RATIONALISED . UMW Oilfield International (M) Sdn Bhd. UMW Oilfield International (L) Ltd . Sichuan Haihua Petroleum Steelpipe Co. Ltd-Sub - DIVESTED 4 Trading and . PFP Holdings Pty Ltd Oilfield services . Jiangshu Tube-Cote Shuguang Coating Ltd . Shanghai Tube-Cote Petroleum Pipe Coating

Total 13

22 Going Beyond Boundaries

23 TOWARDS A RESILIENT ORGANIZATION

The broad strategic framework towards managing Group’s challenges and future needs

CONTINUED EXPANSION OF OUR CORE BUSINESS

01

MONETIZING ADDRESSING 02 03 LONG HELD, EXIT OF LAND ASSETS UNLISTED OIL & GAS SEGMENT

UMW HOLDINGS BERHAD 24 CONTINUED EXPANSION OF OUR BUSINESS

AUTOMOTIVE EQUIPMENT M&E Enhancing and Strengthening of Continued expansion optimizing profitability heavy equipment of core business and segment with Komatsu HVM

25 MONETISING LONG HELD, LAND ASSETS

o Serendah Land – 861 acres o Opportunity exist for unlocking of value. o Part of the land currently housed the Rolls-Royce fan casing project which acts as a catalyst for further development of Serendah.

UMW Aerospace Sdn. Bhd’s site

LOW-DENSITY RESIDENTIAL COMMUNITY AEROSPACE COMMERCIAL CORE WITH HIGH-END, LOW-DENSITY INDUSTRY INTEGRATED CONNECTION TO RESIDENTIAL COMMUNITY CLUSTER CLUSTER LANDSCAPE

MIXED-USE & RESIDENTIAL MEDIUM-DENSITY AFFORDABLE HOUSING LOOP ROAD COMMUNITY

26 Performance Data

27 SELECTED GROUP FINANCIAL HIGHLIGHTS

1 2 . Revenue (RM million) . PBT (RM million)

15,817 2,020 14,933 14,442 1,622 13,952 13,536 1,365 1,436 12,770 12,820 1,277 1,313

856 847 10,721 10,959 9,976 270

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(2,130)

3 4 . KPI – Annual Dividend Payout Ratio (%) . KPI – Gross Dividend Per Share of RM 0.50 each (sen)

100.0 75.8 75.2 78.7 76.1 50.0 57.7 59.0 58.8 44.0 50.8 37.0 41.0 30.0 30.0 31.0 20.0 20.0

0.0 0.0

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

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

28 Key Performance Indicators RETURN ON SHAREHOLDERS FUNDS

21.9% 16.5% 17.0% 13.5% 10.5% 11.7% 11.7% 10.1%

-0.6% -29.3%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

29 Prospects for 2018

30 CURRENT PROSPECTS - 2018

Automotive Equipment

New models for 2018 Product and market expansion

. UMW Toyota to launch new car models to . Leveraging on Partner’s (KOMATSU & TICO) boost market share strength to boost product range and market . Perodua contribution sustainable with penetration continued strong demand in entry level . Expanding value added services – total segment solutions provider

M&E Others

Growth area Focus on divestment of unlisted Oil & Gas assets

. Increasing market share for lubricants . UMW is actively implementing action plans business in existing markets (Malaysia, China towards exit from this segment Indonesia) . . Aerospace plant commence full operations Target complete disposal by 2018 and ramping up production

31 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.