CMS MANAGEMENT PRESENTATION 1 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. 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An investment in Shares is subject to investment risks, including the possible loss of the principal amount invested. 2 28/04/2015 Today’s Presenters Y Bhg 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 Bin Syed Mahmood Ezzularab Abdul- Moez 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 28/04/2015 Contents Section 1 Sarawak Overview Section 2 CMS Overview Section 3 Business Overview Section 4 Financial Highlights Section 5 Corporate Social Responsibility & Governance Section 6 Group Strategies & Going Forward 28/04/2015 4 Section 1 Sarawak Overview 28/04/2015 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 About Sarawak and SCORE • Location North-Western shore of Borneo Island • System of Parliamentary democracy with a contitutional monarch Government • Population About 2.5 million (with an average growth rate of 1.8%) • Ethnic Group Malays, Iban, Chinese, Bidayuh, Melanau,Orang Ulu,Indian and other indigenous groups • Climate Tropical: warm and sunny throughout the year. Sarawak Corridor of Renewable Energy (SCORE ) • Period 2008 – 2030 • Vision To be a Developed and Industrialised State • Launched by YAB Prime Minister on 11 February 2008 • Area Covered 70,708 (Central Region) (km2) • Corridor Authority Regional Corridor Development Authority (RECODA) 7 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 8 5 Growth Nodes of SCORE Limbang 4. PROPOSED ACCESS ROAD TO LIMBANG HEP Samalaju Lawas Heavy and Energy Baram Mukah Miri Smart City, Intensive Industries HEP, Oil Palm and Forest PlantationLIMBANG HEP Services Hub & SAMALAJU INDUSTRIAL PARK 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) Bintulu BAKUN HEP Tanjung Manis 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. Anap 18km (990 MW) 6. SAMARAKAN/SANGAN/ NG. SIBU 10. TG MANIS WATER SUPPLY MERIT/KAPIT ACCESS ROAD 159KM 12. JALAN HAB HALAL TG MANIS SARIKEI 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 SRI AMAN Plantation, Agriculture 3. PROPOSED ACCESS ROAD and Eco-Tourism BATANG AI 73KM TO BALEH HEP HEP (100 MW) 9 Summary of Investment by Growth Nodes No. of Investment Land Water Electricity Gas (mil. No. Growth Node Jobs Project (RM Bn) (ha) (MLD) (MW) scf/day) 1 Samalaju 27 44.5 17,009 2,400.3 127.4 3,923.0 14.9 2 Mukah 1 0.6 800 366.0 4.0 90.0 17.7 3 Tanjung Manis 3 2.3 1,852 1,709.0 3.7 61.0 0.0 4 Kidurung 1 2.6 500 30.0 0.0 10.0 0.0 Total 32 50.0 20,161 4,505.3 135.1 4,084.0 32.5 10 Industrial Plot Development Phasing Samalaju Industrial Park 2 Ph 1 (operational by 2014/2015) 1 1: Press Metal 2: Tokuyama 3: OM Materials 3 Ph 2 (2015 & beyond) 1: Sakura 4 2: Asia Advanced Materials 3: Pertama Ferroralloys 3 4: Malaysian Phosphate 7 5: Elkem 1 6: PMB Carbon 3 1 7: Indo Mall 2 2 8: Makmoni 4 1 Ph 3 (2017 & beyond) 5 1: Cosmos Petroleum 3 2: Leader Universal 3: Aimbest Steel 2 4 6 Ph 4 (post 2018) 1: Toho Titanium 2: SIMPAC Metalloy 11 3: Smelter Asia Private & Confidential PrivateBuilding & Confidential Sustainable & Vibrant Communities Samalaju Industrial Park • Centre for heavy & energy intensive industries • More than 8,000 ha of land • Located 62 km away from existing industrial town of Bintulu Power Sub-Station Water Treatment Plant Sewerage Treatment Plant Samalaju Port Press Metal Workers Camp OM Holding Tokuyama Asia Minerals Limited Aerial View of Samalaju Industrial Park Section 2 CMS Overview 28/04/2015 13 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 28/04/2015 14 Company Snapshot Sarawak’s largest company in Key Statistics infrastructure development Issued Shares: 1039.91 mn One of Sarawak’s largest listed company, with Share Price: RM4.79 2,100 employees plus 1,562 in its 2 associate Market companies. metrics Market Cap: RM4,950.0 mn Incorporated in 1974; Listed on KLSE in 1989. 10 Apr 15 Historical PER: 22.2 x Formerly a construction conglomerate BUT PBV ratio: 2.57 x TODAY, CMS has a sustainable and profitable portfolio of businesses focussing on Sarawak Revenue: RM1,674mn and SCORE. Income PBT: RM341mn statement Basic EPS: 21.42 sen Substantial shareholders Shareholding (FYE Dec 2014) % (as of 1 April 2015) (‘000) DPS: 8.5 sen Majaharta Sdn Bhd 134,775 12.96 Total assets: RM2,800mn Lejla Taib 111,000 10.67 Balance Sheet S/holders’ funds: RM1,812mn Dato Sri Sulaiman AB Rahman Taib 88,395 8.50 (FYE Dec 2014) NA per share: RM1.74 Dato Sri Mahmud Abu Bekir Taib 88,200 8.48 Net Cash per share (of RM0.70 Sarawak Economic Development RM0.50 each) 80,896 7.78 Corporation ROE: 12.77% Key ratios (FYE Employees Provident Fund (KWSP) 79,917 7.68 Dec 2014) ROA: 7.90% Public float: c. 35% Current ratio: 2.51 x 15 Overview of Key Business Segments Cement Construction Materials Construction & Road Samalaju Development Property Strategic & Trading Maintenance Development Investments Sole cement Combined quarries Involved in wide Workers accommodation Owns 2 large land banks Listed manufacturer in annual capacity of range of construction & related services. in Kuching. 25.07% stake in K&N Sarawak. 3.15m MT, & road maintenance Planned new township & 2 major assets: Kenanga Holdings . commands 35% projects across Installed capacity of service centre. market share for Sarawak. 3,911-acre land bank 20% stake in KKB 1.75m MTpa vs. 2014 stone aggregates sold 25% investment in OMS in Petra Jaya being Engineering Bhd. projected demand of Maintains in Sarawak. focuses on developing a developed into a approximately: 1.71m MT. manganese and ferro riverine township Supply 60-70% of called Bandar Baru Sole manufacturer of . 680 km of Federal alloy smelter. Unlisted Sarawak’s market for Samariang; clinker in Sarawak. roads. high quality premix & 40% investment in MPA . 199-acre land bank in CMS Opus Clinker capacity of bitumen emulsion. 5,400 km of State Sarawak focuses on Muara Tebas being Tunku Putra School 0.88m MTpa, roads. developing an integrated Manufactures steel developed into Phosphate complex drawn wires & wire Kuching ‘s new CBD, mesh. called The Isthmus. Strong growth Core divisions generating bulk of group revenue and earnings, will Hidden gem to be Future growth driver potential with value continue to grow in tandem with Sarawak’s growth story unlocked added by CMS Profitable businesses focus on Sarawak & SCORE development 16 Experienced Management with Proven Track Record Centre Key Business Divisions Goh Chii Bing, ED/CEO of Cement Division covering Datuk Syed Ahmad Alwee Alsree, Group cement, clinker and concrete products including Executive Director & CMS nominee Industrialised Building Systems (23 years in CMS).