Bintulu Port Holdings Berhad18th Annual General Meeting

9th May 2014

Aerial View of Bintulu Port Sdn Bhd

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Aerial View of Biport Bulkers Sdn Bhd

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Aerial View of Samalaju Industrial Port Sdn Bhd

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Items 2012 2013 % Of change

Cargo (Million Tonnes) LNG

Non-LNG

41,157 23,529

17,628

43,805 25,479

18,326

6.4 8.3

3.4

Container (TEUs) 231,053 250,353 8.4

Vessel Calls 7,581 8,239 8.7

Cargo and Vessel Performance for 2012 & 2013

LNG 23.529

(57%)

LIQUID BULK

CARGO 7.891 (19%)

DRY BULK CARGO

2.623 (7%)

BREAK BULK

CARGO 2.136 (5%)

CONTAINERISED

3.850 (9%)

LOGS

1.237 (3%)

2012

Cargo Market Share

(‘000 Million Tonnes)

LNG

25.479 (58%)

LIQUID BULK

CARGO 8.873 (20%)

DRY BULK CARGO

3.116 (7%)

BREAK BULK

CARGO 1.430 (3%)

CONTAINERISED

4.068 (10%)

LOGS 0.838

(2%)

2013

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Cargo Performance Breakdown for 2012 & 2013

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Category of cargo

('000) tonnes

2012

Actual

2013

Actual % Of change

LNG 23,529 25,479 8.3%

Liquid bulk cargo 7,892 8,873 12.4%

Dry bulk cargo 2,621 3,116 18.9%

Containerized cargo 3,847 4,069 5.7%

Break bulk & Other Cargoes 3,268 2,268 -30.6%

Grand total 41,157 43,805 6.4%

Reason for shortfalls of Break Bulk & Other Cargoes (Question 1 – EPF) :

1. Downward trend of woodbased product which is sawn timber and plywood.

2. Buyers are sourcing from other competing countries (China, Papua New Guinea, New

Zealand)

3. Conversion of break bulk cargo especially project cargo into container.

Financial Statement for 2012 & 2013

Description 2012 (RM Million) 2013 (RM Million)

Operating Revenue 506.209 529.778

Expenditure (Lease Rental/Amortization about

48% of total expenditure)

(340.524) 134.9

(356.206) 128.5

PBT 178.571 188.173

Taxation (32.183) (30.468)

PAT 146.388 157.705

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Key Highlight Matters

MATTERS RELATED TO CARGO PERFORMANCES, STRATEGIES, TARGETS AND WAY FORWARD

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1. Cargo Performance (Question 1 – EPF & MSWG)

• Bintulu Port registered total cargo growth of 6.41% from 2012 to 2013 (41.157 million

tonnes to 43.805 million tonnes).

• Vessel call registered growth of 8.7% from 2012 to 2013 (7,581 calls to 8,239 calls).

• We are expecting an annual average cargo growth of 4% for the next 5 years.

2. Strategies and Way Forward (Question 1 – EPF, Question 1a - MSWG)

i. The Company had identified palm oil products, dry bulk cargoes, containerized cargoes

and oil & gas services as its four (4) major growth sectors.

ii. Continuously improving operational productivity and efficiency.

iii. Build and enhance capacities.

iv. Ensure cost effectiveness of port operations.

• Palm oil plantation for Sarawak is expected to grow from 1.32 million hectare in 2014 to 2.00

million hectare in 2020.

• The existing 4 palm oil refineries are increasing their capacity to cater for the increase in demand.

• The growth of Palm Oil is encourage by strong demand from China and India markets and opening

new market from Philippines and Africa.

• Bintulu Port is developing a new berth facility of 150m Small Vessel Berth schedule to be

completed by 2015.

• Biport Bulkers is increasing the storage and bulking capacities from 60 units to 85 units of storage

tanks and schedule to complete in Quarter 3 2014. The total capacity will be 154,000 tonnes.

• Bintulu Port is targeting to handle 3.43 million tonnes of Palm oil for 2014 which is 5% higher

compare to 3.27 million tonnes in 2013.

a. Palm Oil Sector

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Key Highlight Matters - Major Growth Sector

Fertilizer

• The growth of fertilizer volume is in tandem with the development of the palm oil industry.

• To cater for the increase demand of fertilizer, Bintulu Port planned to provide additional capacity

and facilities.

Clinker

• Cement materials is expected to increase due to extensive regional development of Bintulu and

Samalaju Industrial Park.

Palm Kernel Expeller

• The demand is expected to grow based on the continuous export to countries like New Zealand,

Australia, India, Korea and Japan mainly for livestock feed.

Woodchips

• Increase demand for woodchip from Japanese and China paper manufacturers.

Cargo Projections for 2014

• Bulk Fertilizer - 600,000 MT (Average Annual Growth 4% for the next 5 years)

• Clinker - 550,000 MT (Average Annual Growth 5% for the next 5 years)

• Palm Kernel Expeller - 327,000 MT (Average Annual Growth 9% for the next 5 years)

• Woodchips - 250,000 MT (Average Annual Growth 15% for the next 5 years)

b. Dry Bulk Sector (Fertilizer, Clinker, Palm Kernel Expeller and Woodchips)

Key Highlight Matters - Major Growth Sector

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• Container sector is forecasted to grow more than national GDP due to:

Strong local box growth in tandem to the development of Bintulu Town and Samalaju

Industrial Park.

New SCORE generated cargo and Inbound project cargo. (Press Metal, OM Holdings,

Pertama Ferroalloys, MLNG Train 9, Elkem and others)

Transhipment volume from Sabah and Sarawak.

• Continuous improvement to the Terminal’s productivity and efficiency

– Vessel turnaround at berth has improved from 15 hours in 2012 to 10 hours in 2013.

– New Terminal operation system, Navis SPARCS N4 by Quarter 3 2014.

• Bintulu Port is targeted to handle about 284,000 TEUs in 2014 and increase of 13% as compared

to 2013 throughput of 250,353 TEUs. (Average Annual Growth 7% for the next 5 years)

c. Container Sector

Key Highlight Matters - Major Growth Sector

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• Strong demand for Supply Base services and facilities to cater for production and exploration

activities off Bintulu Waters with the discovery of more blocks.

• Bintulu Port has been granted PETRONAS SUPPLY BASE License and is now providing

facilities and service for Supply Based Operation in Bintulu Port.

• The facilities and services comprises of storage area, passenger terminal, fresh water supply

and bunkering facilities. Among the main Oil & Gas Players now that are using Bintulu Port

Supply Base facilities and services are Murphy Sarawak Oil Corporation and PETRONAS

Carigali.

Key Highlight Matters – Major Growth Sector

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d. Oil and Gas Sector

Murphy Sarawak Oil Corp

45 Meter Berth / Fuel

Bunker / Water Supply

Passenger Terminal

Key Highlight Matters – Samalaju Industrial Port Sdn Bhd

MATTERS RELATED TO SAMALAJU INDUSTRIAL PORT SDN BHD, FACILITIES & SERVICE AND FUTURE PROSPECT

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1. Samalaju Industrial Port Operation (Question 2a – EPF, Question 1b & 2 - MSWG)

• Samalaju Port started interim operation on 21st April 2014 with 2 barge berths and 1

Ro-Ro Ramp. For the 1st operation, the Port handled 30 TEUs container shipment and

anode carbon of 3,690 tonnes.

• The overall wharf length is 320 metres with draft alongside of 7 metres which can cater

maximum capacity of 8,000 tonnes vessel.

• Samalaju Port is expected to handle up to 450,000 tonnes of cargoes in 2014.

• On going marketing campaign to attract the customers (investor and shipping

companies) to utilize the interim facilities.

• There will be two (2) construction works to be tendered/awarded as shown below:

No Contract Title Physical Progress

Schedule Actual Variance

1. Capital Dredging and Reclamation Package for Phase 1 work 35.6 30.92 -4.68

2. Breakwater and Associated Works Package for Phase 1 6.44 4.73 -1.71

3. Onshore Facilities for Phase 1 works 4.47 4.36 -0.11

4. Wharf and Associate Works for Phase 1 works 3.79 0.71 -3.08

5. HV/LV and Navigation Aids works package for Phase 1 Works Date of commencement of work is 1st April 2014.

Key Highlight Matters – Samalaju Industrial Port Sdn Bhd

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2. Status of Construction Progress (Question 2b – EPF)

• As of 25th April 2014 overall physical progress of Phase 1 development of Samalaju Industrial Port is

25.22% (Actual) vs 28.00% (Scheduled).

• Details of works progress for Phase 1 individual tender packages are:

No Title of Tender Status

1. Conveyor System Facilities Package for Phase 1 Works Under evaluation process

2. Administration Building and Associated Works Package To be tendered out in May 2014

Key Highlight Matters – Samalaju Industrial Port Sdn Bhd

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2012/2013 2014 2015 2016 2017 2018

Cargo Throughput

('000 Tonnes) - 0.450 2,105 5,890 9,168 9,278

Operating Revenue

(RM’000) - 6,573 13,852 16,252 199,335 201,828

CAPEX (RM’000) (314,503) (706,744) (706,636) (109,335) - -

3. Cargo Projection, Operating Revenue and CAPEX (Question 2c & 3a - EPF)

• The Projected Cargo Throughput, Operating Revenue and CAPEX for 2014 to 2018.

4. Key Risk (Question 2c - EPF)

1. Targeted cargo volume not achieved.

2. Delay in the Samalaju Industrial Park investors’ project implementation.

Key Highlight Matters– Samalaju Industrial Park

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Investors & Projects

Land

Area

(ha)

Status

Cargo

Projection

(‘000 Tonnes)

Tokuyama Malaysia Sdn Bhd 202 Phase 1 and 2 completed and in

production trial. 0.621

Press Metal Bintulu Sdn Bhd 202 Completed and commercial production

since December 2012. 1.102

Pertama Ferroalloys Sdn Bhd 183 Construction stage (70%) and expected

commencement by Q4, 2014 0.940

OM Materials (Sarawak) Sdn

Bhd 202

Construction stage (37%) and expected

commencement by Q2, 2015 2.080

Asia Advanced Materials Sdn

Bhd 48

Earthwork completed and expected

commencement by Q2, 2015 0.522

Sakura Ferroalloys Sdn Bhd 100 Earthwork completed and expected

commencement by Q2, 2015 0.731

5. Status of Investors’ in Samalaju Industrial Park (Question 2d & 3a – EPF, Question 1b - MSWG)

• The latest list of development progress of the confirmed Investors in Samalaju Industrial Park are as

below:

• Samalaju Industrial Park and New Township layout plan.

Key Highlight Matters – Samalaju Industrial Park

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Key Highlight Matters – Concession Period

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1. Extension of Concession Period for Bintulu Port Sdn Bhd (Question 3b - EPF)

• The Company had submitted its proposal to the Government for an extension of the

concession period for another thirty (30) years from 2023 to 2052 and now is in the midst

of negotiating with the relevant government agencies i.e. Unit Kerjasama Awam Swasta

(UKAS), Ministry of Transport (MoT), Ministry of Finance (MoF), Jabatan Penilaian dan

Perkhidmatan Harta (JPPH) as well as Bintulu Port Authority (BPA) on the said proposal.

• The Company is targeting to get the principal approval on the extension by September

2014.

BINTULU PORT HOLDINGS BERHAD

Thank You www.bintuluport.com.my