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Beyond BoundariesUMW Holdings BerhadCorporate PresentationJanuary 2018

2

Introduction

3

OUR JOURNEY

Enhancing our capabilities

Founded in 1917 Automotive Assembly Tier 1 Supplier

Bicycle repair shop 36 years with Toyota

25 years with Daihatsu

Fan Case Manufacturer for

Rolls-Royce

Laying the building blocks for excellence

UMW Holdings Berhad

4

58.32%

12.07%

7.99%12.66%

8.96%

OUR SHAREHOLDERS

As at 31/01/2018

31/01/2018

Market Capitalisation

RM 8.0b

PNB

EPF

Other Local Shareholders KWAP

Foreign Shareholders

Permodalan Nasional Berhad/ PNB

Managed Unit Trust Funds, 58.32%

Employee Provident Fund Board,

8.96%

Foreign Shareholders, 12.07%

Other Local Shareholders, 12.66% Kumpulan Wang Persaraan

(Diperbadankan), 7.99%

UMW Holdings Berhad

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OVERVIEW OF OUR BUSINESSES

01 02 03

04

• Manufacture

• Assembly

• Distribution

• Sales &

service

Automotive Equipment M&E

Others

• Distribution

• Trading

• After-sales

service

• Blending &

distribution

of lubricants

• Manufacture

of

automotive

components

• Manufacture

of fan case

• Manufacture

• Land rigs

• Trading

Oil & Gas - Unlisted

UMW Holdings Berhad

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INTERNATIONAL PRESENCE

10 countries

China

Malaysia

Indonesia

Myanmar

India

Papua

New Guinea

Singapore

Australia

Oman

Automotive

Equipment

Manufacturing & Engineering

Oil & Gas

Vietnam

10,374 Employees

AA2 RAM

Credit Rating

UMW Holdings Berhad

7

Our Automotive

business

8

UMW AUTOMOTIVE SEGMENT

UMW Toyota Motor

Sdn. Bhd.*

Manufacturer and dealer in

component parts including

engines, couplings and

transmission components

Perodua Engine Manufacturing

Sdn. Bhd.

Perodua Manufacturing

Sdn. Bhd.

Perodua Sales

Sdn. Bhd.

30%

Toyota Boshoku

UMW Sdn. Bhd.

Automotive Industries

Sdn. Bhd.

Assembly Services

Sdn. Bhd.

Perusahaan Otomobil Kedua

Sdn. Bhd.**

Manufacturer and assembler

of motor vehicles and other

related activities

Investment holding and

provision of management and

administrative services

Marketing and distribution of motor

vehicles, related spare parts and

other related activities

Manufacturer

of car seats

Manufacturer and

supplier of exhaust

systems

Assembler of

vehicles

Ingress Technologies

Sdn. Bhd.

Manufacturer of complete door

assemblies and press parts

UMW Toyotsu Motors

Sdn. Bhd.

Sales and service of

Toyota and Lexus

vehicles and parts

65%

100%

100%

49%

49%

49%

100%

30%

Investment holding,

importation and distribution

of Toyota vehicles and

related parts

Investment holding and

provision of management and

administrative services

39% Toyota Motor Corporation10% Toyota Tsusho Corporation

4.2% Mitsui & Co., Ltd2.8% Mitsui & Co., ( Asia Pacific) Pte Ltd5% Daihatsu (Malaysia) Sdn Bhd

30% Toyota Capital Malaysia

Sdn. Bhd.

Hire purchase

financing of Toyota

customers

*

51% 38%

51%

51%

***41% Daihatsu Motor Co., Ltd6% Mitsui Co., Ltd 4% Mitsui & Co., ( Asia Pacific) Pte Ltd

20% Daihatsu Motor Co., Ltd20% MBM Resources Bhd10% PNB Equity Resource

Corporation Sdn Bhd

**

Perodua Global Manufacturing

Sdn. Bhd.49%

51%

Daihatsu Perodua Engine

Manufacturing Sdn. Bhd.

49% 51% Daihatsu Motor Co., LtdManufacturer of engine and engine components for Energy Efficient Vehicles

Manufacturer and assembler

of motor vehicles and other

related activities

Perodua Auto

Corporation Sdn. Bhd.***

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• Lower sales in 2017 were mainly due to weak consumer sentiment and stringent

lending guidelines imposed by the financial institutions.

• Target for 2018 is 590,000 units (+2.3% growth)

548,115 536,905605,156 600,123 627,753 655,793 666,465 666,674

580,124 576,635

12.5%

-2.0%

12.7%

-0.8%4.6% 4.5%

1.6% 0.0%

-13.0% -0.6%

-75.0%

-65.0%

-55.0%

-45.0%

-35.0%

-25.0%

-15.0%

-5.0%

5.0%

15.0%

25.0%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Unit sales

Growth

TOTAL INDUSTRY VOLUME (TIV)

TIV % Change Over Previous Year RHS

Total Industry Volume – Unit Sales LHS

UMW Holdings Berhad

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LEXUS & TOYOTA

• Distributes 6 CKD and 7 CBU Toyota models. Lexus models are all CBU.

• Top selling Toyota models in 2017 – Vios (35%) and Hilux 27%).

• Importation of CBU cars and CKD components are transacted in US Dollar.

• 2018 – more new models from Toyota and Lexus

• Target for 2018 is more than 70,000 units.

101,839

82,08991,990 88,662

106,622

92,521103,636

95,861

65,11070,445

18.6%

15.3% 15.2% 14.8%

17.0%

14.1%

15.6%14.4%

11.2%12.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0

50,000

100,000

150,000

200,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Unit sales

Market Share

UMW Toyota Motor Market Share Of TIV RHS

UMW Toyota Motor Unit Sales LHS

UMW Holdings Berhad

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PERODUA

• 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 2018 is 209,000 units (+2% growth).

167,393 166,736

188,641179,989

189,137 196,071 195,579213,307 207,110 204,887

30.5% 31.1% 31.2%30.0% 30.1% 29.9% 29.3%

32.0%

35.7% 35.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Unit sales

Market Share

Perodua Market Share Of TIV RHS

Perodua Unit Sales LHS

UMW Holdings Berhad

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UMW GROUP’S MARKET SHARE

Units & Market Share (%)

35.5%

12.2%

52.3%

Brand 2017 2016

Units Market

Share %

Units Market

Share %

Honda

Proton

Nissan

Mazda

Hyundai, Kia

Others

109,511

70,991

27,154

9,730

8,241

75,676

19.0

12.3

4.7

1.7

1.4

13.1

91,830

72,290

40,706

12,493

9,470

81,115

15.8

12.5

7.0

2.2

1.6

14.0

Total 576,635 580,124

2016

207,110

35.7%

2016

65,110

11.2%

2016

307,904

53.1%

Perodua

204,887 UMW Toyota

70,445

Others

301,303

• UMW companies sold 275,332

units in 2017 with a market

share of 48% (2016 – 47%)

UMW Holdings Berhad

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Our Equipment

business

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EQUIPMENT SEGMENT

Agriculture

Construction

Forestry

Mining

Industrial and manufacturing

Industrial cleaning – food and beverage, material handling and logistics

Industrial and marine power solutions

UMW represents all of the above principals for some of the world’s most recognised products in:

Heavy Equipment Industrial Equipment Marine & Power Equip

UMW Holdings Berhad

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HEAVY EQUIPMENT

• 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.

Myanmar

Papua New Guinea

Malaysia

Singapore

Since 1979 Since 1996

Delivered 38 units

of Rosenbauer

Panther Airport

Fire Fighting

Vehicles to MAHB

from 2010-2015

Since 1965

UMW Holdings Berhad

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INDUSTRIAL EQUIPMENT

Toyota Forklift Franchise

Malaysia

Vietnam

Brunei

Singapore

China

Shanghai,

Zhejiang

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.

Strong market leadership position

UMW Holdings Berhad

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MARINE AND POWER EQUIPMENT

CompAir

Air Compressor

Mitsubishi

Marine Engines

Honda

Power Products

Ingersoll Rand

Centrifugal

Compressor

GE

Reciprocating

Compressor

Mitsubishi

Gen-sets

UMW Holdings Berhad

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Our Manufacturing &

Engineering

business

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KEY PRODUCTS

Aerospace Component Lubricants

Auto Components

Fan

Case

Lubricants &

Fluids

Fluids &

Chemicals

Lubricants &

Fluids

(China)

Shock

Absorbers

& Power

Steering

Automotive

Components

UMW Holdings Berhad

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MANUFACTURE OF AERO ENGINE FAN CASES

• 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.

• UMW will be the only supplier (‘single-source supplier’) for

fan cases for both the engines.

• The manufacturing plant is located in Serendah, Selangor.

• Successfully delivered the first fan case on 29 November

2017.

Component Part Manufacturing for RR’s Most

Advanced Passenger Aircraft Engines

Be Part of Asian Supply Chain Development

Single Source Final Assembly of the Trent 1000

and Trent 7000 engines in Singapore

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

Royce

UMW Aerospace Sdn Bhd

UMW Holdings Berhad

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Others

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UMW Synergistic Generation Sdn. Bhd. - RATIONALISED

UMW Oilfield International (M) Sdn. Bhd. & UMW Oilfield International (L) Ltd.

Sichuan Haihua Petroleum Steelpipe Co. Ltd. - DIVESTED

PFP Holdings Pty. Ltd. (a subsidiary in Taiwan was divested)

Jiangshu Tube-Cote Shuguang Coating Co. Ltd.

Shanghai Tube-Cote Petroleum Pipe Coating Co. Ltd.

OIL & GAS (UNLISTED)

Companies that are not part of the listed segment

Drilling &

Exploration

OCTG & Line

Pipe

Fabrication

Trading and

Oilfield services

No of remaining

assets

JayBee Drilling Pvt. Ltd.

UMW Sher (L) Ltd.

Arabian Drilling Services L.L.C – CEASED OPERATIONS

Shanghai BSW Petro-Pipe Co. Ltd.

Zhongyou BSS (Qinhuangdao) Petropipe Co. Ltd.

Oil Country Tubular Limited

United Seamless Tubulaar Pvt. Ltd.

Tubulars International Pte. Ltd.

3

UMW Fabritech Sdn. Bhd. -DIVESTED

UMW Coating Technologies (Tianjin) Co. Ltd.

5

1

4

13Total

UMW Holdings Berhad

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Going Beyond

Boundaries

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TOWARDS A RESILIENT ORGANIZATION

01

0302

CONTINUED

EXPANSION OF

OUR CORE

BUSINESS

ADDRESSING

EXIT OF

UNLISTED OIL

& GAS

SEGMENT

MONETIZING

LONG HELD,

LAND ASSETS

The broad strategic framework towards managing

Group’s challenges and future needs

UMW Holdings Berhad

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CONTINUED EXPANSION OF OUR BUSINESS

AUTOMOTIVE

Enhancing and

optimizing profitability

M&E

Continued expansion

of core business and

HVM

EQUIPMENT

Strengthening of

heavy equipment

segment with Komatsu

UMW Holdings Berhad

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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.

LOW-DENSITY

RESIDENTIAL

COMMUNITY

COMMERCIAL CORE WITH

INTEGRATED CONNECTION TO

LANDSCAPE

MIXED-USE & RESIDENTIAL

LOOP ROAD

HIGH-END, LOW-DENSITY

RESIDENTIAL COMMUNITY

AEROSPACE

INDUSTRY

CLUSTER

AUTOMOTIVE INDUSTRY

CLUSTER

MEDIUM-DENSITY AFFORDABLE HOUSING

COMMUNITY

UMW Aerospace Sdn.

Bhd’s site

UMW Holdings Berhad

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Performance Data

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SELECTED GROUP FINANCIAL HIGHLIGHTS

Revenue (RM million) PBT (RM million)

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

1 2

43

9,976

12,770

10,721

12,82013,536

15,817

13,952

14,93314,442

10,959

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

856

1,277

847

1,313 1,365

2,020

1,4361,622

270

(2,130)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

50.857.7 59.0

75.8 75.2

58.8

78.7 76.1

100.0

0.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

30.037.0

20.030.0 31.0

50.044.0 41.0

20.0

0.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

March 08

Share Split from

RM1.00 to RM0.50 each

UMW Holdings Berhad

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Key Performance Indicators

RETURN ON SHAREHOLDERS FUNDS

16.5% 17.0%

10.5%13.5%

11.7%

21.9%

11.7% 10.1%

-0.6% -29.3%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

UMW Holdings Berhad

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Prospects for 2018

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CURRENT PROSPECTS - 2018

Automotive Equipment

Leveraging on Partner’s (KOMATSU & TICO) strength to boost product range and market penetration

Expanding value added services – total solutions provider

Product and market

expansion

M&E

Increasing market share for lubricants business in existing markets (Malaysia, China Indonesia)

Aerospace plant commence full operations and ramping up production

Growth area

Others

UMW is actively implementing action plans towards exit from this segment

Target complete disposal by 2018

Focus on divestment

of unlisted Oil & Gas

assets

New models for 2018

UMW Toyota Motor to launch new car models to boost market share

Perodua contribution sustainable with continued strong demand in entry level segment

UMW Holdings Berhad

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.

S. Vikneshwaran

Head, Investor, Media Relations & Sustainability

Email: [email protected]

Telephone: +603 5163 5000

THANK YOU

Roza Shahnaz Omar

Director, Group Strategy

UMW Corporation Sdn. Bhd.