UMW Holdings Berhad

BRIEFING ON

1Q14 RESULTS

26 May 2014

2

AGENDA

1. SHAREHOLDING STRUCTURE

2. GROUP RESULTS FOR 1Q14

3. SEGMENTAL RESULTS

• AUTOMOTIVE DIVISION

• EQUIPMENT DIVISION

• OIL & GAS DIVISION

• MANUFACTURING & ENGINEERING DIVISION

• OTHERS

4. BALANCE SHEET HIGHLIGHTS

5. PROSPECTS FOR 2014

6. Q & A

UMW HOLDINGS BERHAD

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SHAREHOLDING STRUCTURE As at 30 April 2014

Permodalan Nasional Berhad (PNB)/

PNB Managed Unit Trust Funds, 54.76%

(April 2013 = 50.14%)

Employees Provident Fund Board, 16.61%

(April 2013 = 13.56%)

PNB and EPF shareholdings are based on direct interest and deemed interest

*

Other Local Shareholders, 12.46%

(April 2013 = 11.36%)

Foreign Shareholders, 16.17%

(April 2013 = 24.94%)

UMW HOLDINGS BERHAD

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SUMMARY OF GROUP RESULTS

RM’ million 1Q14 1Q2013

Restated Variance

FY2013

Audited

Revenue 3,583.4 3,359.3 6.7% 13,951.5

Profit before

taxation 479.4 432.7 10.8% 1,435.7

Profit after taxation 392.1 335.2 17.0% 1,084.2

Non-controlling

Interests 156.5 115.5 35.5% 431.3

Profit to the equity

shareholders of the

company

235.5 219.7 7.2% 652.9

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AUTOMOTIVE DIVISION

UMW HOLDINGS BERHAD

• Launched on 13

October 2013

• Plans to sell over

600 units by the

end of 2014

• Launched on 20

January 2014

• YTD April, more than

3,000 units have been

delivered.

Perodua Myvi XT

• Launched on 10 April

2014

• The XT, which means

extra, comes new seat

fabric, alloy rims,

improved audio system

with USB & Bluetooth.

Toyota Camry 2.0G X

• Launched on 18

March 2014

• (‘X’ stands for

‘Exquisite Luxury’)

• New colour of leather

upholstery; dark wood

trim; rear-view

camera.

Toyota Innova 2.0G

• Launched on 31

March 2014

• The radiator grille,

with three horizontal

slats, has been

enlarged

• The double layer front

bumper has been

redesigned

Perodua Alza

• Launched on 10 Jan 2014

• 2 improvements:-

i. ISOFIX points for child

safety seats

ii. splitting the 3rd row

seat in half to allow

greater customisation

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SEGMENTAL RESULTS

BUSINESS SEGMENT - AUTOMOTIVE

1Q14

RM’000

1Q13

RM’000

Variance

FY2013

RM’000

(Audited)

Revenue 2,656,435 2,392,089 11.1% 10,022,984

PBT 406,567 368,055 10.5% 1,413,474

UMW TOYOTA MOTOR

- Toyota sold 24,185 units in 1Q14 compared with 20,137 units in 1Q13 (+20.1%).

- Lexus sold 449 units in 1Q14 compared with 229 units in 1Q13 (+96.1%).

- The all-new Toyota Vios was launched in October 2013.

- The all-new Toyota Corolla Altis was launched on 20 January 2014.

- A new variant of The Toyota Camry 2.0G X was introduced on 18 March 2014. It provides an

additional option for customers who are looking for a different look and feel from the popular

2.0G.

- Introduced an improved Toyota Innova for 2014 on 31 March 2014.

- Started offering the Toyota Alphard and Toyota Previa (both CBU Japan) as part of the line-up

for the Malaysian market on 4 April 2014.

UMW HOLDINGS BERHAD

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SEGMENTAL RESULTS

BUSINESS SEGMENT - AUTOMOTIVE

PERODUA

- Registered sales of 44,024 units for 1Q14 compared with 46,696 units in 1Q13 (-5.7%).

- However, Perodua registered better profit before taxation due to higher contribution from

the after-sales segment, due to the higher number of units in operations.

- Perodua introduced the improved New Alza including greater safety features, enhanced

audio-visual upgrades as well as a more versatile interior design on 10 January 2014.

- Perodua launched a new Myvi variant dubbed the Myvi XT, tailored specifically for today’s

Gen Y’s as well as Gen Z’s automotive needs on 10 April.

UMW HOLDINGS BERHAD

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• UMW companies sold 68,658 units as of March 2014 with a market share of 43%.

UMW Toyota24,63415.4%

Perodua44,02427.5%

Others91,25257.1%

UMW GROUP’S MARKET SHARE Units & Market Share (%) YTD March 2014 Brand YTD March 2014

Market

Share %

Units

Proton

Nissan

Honda

Hyundai, Kia

Volkswagen

Others

20.5

7.5

9.8

2.6

1.7

15.0

32,734

11,957

15,627

4,199

2,704

24,031

Total 57.1 91,252

(1Q13)

Perodua

46,696

29.6%

(1Q13)

UMW Toyota

20,366

12.9% (1Q13)

Others

90,602

57.5%

UMW HOLDINGS BERHAD

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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 beverages, material handling and logistics

EQUIPMENT DIVISION

UMW HOLDINGS BERHAD

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SEGMENTAL RESULTS

BUSINESS SEGMENT - EQUIPMENT

1Q14

RM’000

1Q13

RM’000 Variance

FY2013

RM’000

(Audited)

Revenue 434,941 479,387 (9.3%) 1,705,458

PBT 39,098 59,080 (33.8%) 195,838

Lower revenue was due to:-

1) Papua New Guinea

- Due to the low gold prices, there is a slowdown in the gold mining activities.

- We are focusing on sales of spare parts and maintenance service.

2) Myanmar

- The jade mining activities have not resumed due to some internal issues.

- We continue to monitor our operations closely and are now concentrating on selling of parts.

- We are also exploring other business segments such as supplying construction equipment,

as we have exclusive Komatsu franchise for Myanmar.

The industrial equipment business (including leasing) is expanding strongly.

For 1Q14, 56% of total revenue for this segment came from the industrial equipment business.

UMW HOLDINGS BERHAD

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OIL & GAS DIVISION

UMW HOLDINGS BERHAD

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SEGMENTAL RESULTS

BUSINESS SEGMENT – OIL & GAS

1Q14

RM’000

1Q13

RM’000 Variance

FY2013

RM’000

(Audited)

Revenue 195,573 157,724 24% 737,752

PBT 58,303 20,623 >100% 206,849

i. The increase in revenue for 1Q14 was due to:-

- Full contribution from NAGA 4 which commenced operations on 5th April 2013.

- Higher daily operating rates for NAGA 2; and

- Higher operating days for NAGA 1.

ii. In tandem with the increase in revenue, profit before taxation increased by 183% to RM58

million from RM23 million a year ago. In addition, the profit before taxation improved

further from the higher investment income from placement of the IPO proceeds.

UMW HOLDINGS BERHAD

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MANUFACTURING & ENGINEERING DIVISION

UMW HOLDINGS BERHAD

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SEGMENTAL RESULTS

BUSINESS SEGMENT – MANUFACTURING & ENGINEERING

1Q14

RM’000

1Q13

RM’000 Variance

FY2013

RM’000

(Audited)

Revenue 181,915 177,131 2.7% 735,498

PBT 9,621 9,388 2.5% (39,164)

Malaysia operations

- All Malaysian operations are doing well. Sales of both, automotive components and

lubricants, have been encouraging.

- The KYB-UMW Group is now exporting its products to 27 countries.

- KYB is focusing on increasing its market share in the global replacement market for shock

absorbers. 2013 sales was 838,000 units. Target of 2 million pieces by 2020.

China operations

- The lubricant business in China is doing very well, despite being only 3 years in operations.

- There has been a jump in revenue due to strong demand from FAW Mazda and Hongqi.

- We are bidding to supply to other major automotive players in China.

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SEGMENTAL RESULTS

BUSINESS SEGMENT – MANUFACTURING & ENGINEERING

UMW HOLDINGS BERHAD

India operations – The automotive industry in India

(source: Society of Indian Automobile Manufacturers (SIAM))

We have 3 automotive components manufacturing facilities in India – 2 in Chennai and 1 in

Pune.

Results

i) Better sales was registered in 1Q14.

ii) However, the automotive business continues to be very challenging.

Apr 2012 – Mar 2013 Apr 2013 – Mar 2014 Variance

Passenger vehicles 2,686,429 2,523, 901 (6.05%)

Commercial vehicles 793,150 632,696 (20.2%)

Total 3,479,579

3,156,597 (9.3%)

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SEGMENTAL RESULTS

BUSINESS SEGMENT – OTHERS

1Q14

RM’000

1Q13

RM’000 Variance

FY2013

RM’000

(Audited)

Revenue 130,719 153,747 (15.0%) 826,627

PBT (34,210) (27,286) (25.4%) (341,324)

The main contributors to the losses in this segment are:-

i) Zhongyou BSS (Qinhuangdao) Petropipe Co. Ltd. & Shanghai BSW Petro-pipe Co. Ltd.

(manufacturers of LSAW and SSAW oil & gas transmission pipes).

Issues

The slowdown in major pipeline projects has affected the demand for our oil & gas transmission

pipes.

Counter-measures

- We have intensified our international marketing activities and have representatives in Dubai

and Houston. We are also targeting South America, the Middle-East and North Africa regions.

- For pipes, we have USD15 million orders in hand & USD132 million of tender outstanding.

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SEGMENTAL RESULTS

BUSINESS SEGMENT – OTHERS (con’t)

UMW HOLDINGS BERHAD

ii) Arabian Drilling Services L.L.C, Oman

Issues

- There has been a delay in the start of a project for Daleel Petroleum in Oman due to the late

delivery of an onshore drilling rig.

Counter-measures

- We have received long-term contracts (4 years) for two of our rigs in Oman, Ghazal III and

Ghazal IV with the Petroleum Development of Oman (PDO), a Shell operating company.

- One of our rigs, Ghazal 5, have started working recently in May.

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PROSPECTS FOR 2014

AUTOMOTIVE DIVISION

Malaysian Automotive Association’s target for this year is 670,000 units, 2.2%

increase compared to 2013 TIV of 655,793 units.

YTD April 2014, the industry has registered a 4% growth. Sales in 2Q14 is also

expected to be strong, leading to the festive season in late-July.

UMW Group’s combined total sales is forecasted to be about 295,400 units for 2014.

UMW TOYOTA MOTOR

• Sales forecast for Toyota (97,000 units) & Lexus (1,400 units) = 98,400 units.

PERODUA

• Sales forecast for Perodua is 197,000 units.

• The company plans to launch a new model in the second half of this year.

• The second plant in Rawang is expected to be operational by the second half

of this year.

UMW HOLDINGS BERHAD

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PROSPECTS FOR 2014

EQUIPMENT DIVISION

• The segment is expected to remain challenging if the drop in commodity

prices continues at the current low level and the suspension of mining

activities is prolonged.

• However, the segment is expected to sustain its performance from the sale of

parts.

• We are expanding our equipment leasing business. The demand for this

segment is increasing and this business gives us better margins. We hope to

increase the leasing business to 50% of our total industrial equipment

business from 30% currently.

UMW HOLDINGS BERHAD

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PROSPECTS FOR 2014

MANUFACTURING & ENGINEERING DIVISION

The segment is expected to sustain its performance through better sales of lubricant

products and automotive components, such as shock absorbers and filters.

India operations

- The general election in India has been concluded. The economy is expected to

improve with the pro-business government taking control.

- Automotive sales is expected to pick-up in the second half of the year.

- The bank loans for our operations in India are in United States Dollar. The Indian

Rupee has been strengthening.

31 December 2013: USD1 = INR61.8194

26 May 2014: USD1 = INR58.4305

UMW HOLDINGS BERHAD

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PROSPECTS FOR 2014

OIL & GAS DIVISION

• We have taken delivery of NAGA 5 on 29th April 2014. We have secured a

contract with NIDO Petroleum Philippines Pty. Ltd. for NAGA 5, with a

contract value of approximately USD7 million. The rig started operations for

this contract on 12th May 2014.

• We have also announced purchase of 3 jack-up drilling rigs.

• The first of the three will be delivered to us in September this year, with the

second rig targeted for December.

• Our hydraulic workover unit, GAIT 3, has commenced a 2-year firm contract

with a 1-year option with PETRONAS Carigali in March 2014.

• GAIT 2, GAIT 5 and GAIT 6 are also expected to be income generating

during most part of the remaining period of 2014.

UMW HOLDINGS BERHAD

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THANK YOU

UMW HOLDINGS BERHAD