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. The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither Cahya Mata Sarawak Berhad (“ CMSB ”) or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. The past performance of CMSB is not indicative of the future performance of CMSB. The value of shares in CMSB (“ Shares ”) and the income derived from them may fall as well as rise. Shares are not obligations of, deposits in, or guaranteed by, CMSB or any of its affiliates. An investment in Shares is subject to investment risks, including the possible loss of the principal amount invested. 2 10/04/2017
Today’s Presenters Y D H 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 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
Contents Section 1 Sarawak Overview Section 2 CMS Overview Section 3 Business Overview Section 4 Financial Highlights Section 5 Sustainability Statement & Governance Section 6 Group Strategies & Going Forward 4 10/04/2017
Section 1 Sarawak Overview 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 10/04/2017 ▪ ▪ 6 Capital City: Kuala Lumpur Capital City: Kuching ▪ ▪ 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 constitutional 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) (km 2 ) • 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 10/04/2017
5 Growth Nodes of SCORE Limbang 4. PROPOSED ACCESS ROAD TO LIMBANG HEP Lawas Samalaju Heavy and Energy Mukah Baram Miri HEP, Oil Palm and Intensive Industries Smart City, Forest Plantation LIMBANG HEP Services Hub & SAMALAJU INDUSTRIAL PARK (150 MW) Beluru Eco-Tourism R&D Long 8. WATER SUPPLY TO 2. ACCESS ROAD 127KM TO Lama SAMALAJU ( Phase 1 Stage 1) BARAM HEP 7. PROPOSED NEW MUKAH Samalaju AIRPORT B1 : 16km 9. WATER SUPPLY TO SAMALAJU ( Phase 1 Stage 2) Baram 11. MUKAH WATER SUPPLY BARAM HEP (1000 MW) Bintulu Tanjung Manis BAKUN HEP 1. ACCESS ROAD 62KM TO (2,400 MW) Mukah Halal Hub Samarakan MURUM HEP TG. MANIS HALAL HUB DEV ’ T Belaga MURUM HEP TG. MANIS TELECOM. Sangan – Sg. (990 MW) Anap 18km 6. SAMARAKAN/SANGAN/ NG. SIBU 10. TG MANIS WATER SUPPLY MERIT/KAPIT ACCESS ROAD 159KM 12. JALAN HAB HALAL TG MANIS SARIKEI Tunoh Tunoh Baleh bridge TANJUNG 5. PROPOSED ACCESS ROAD MANIS TO TUNOH KAPIT Kanowit Song KUCHING BETONG Tunoh BALEH HEP SAMARAHAN (1200 MW) Oil Palm and Forest Plantation, Agriculture SRI AMAN 3. PROPOSED ACCESS ROAD and Eco-Tourism 73KM TO BALEH HEP BATANG AI HEP 9 (100 MW)
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 10/04/2017 10
Industrial Plot Development Phasing Ph 1 (operational by 2014/2015) 1: Press Metal 2: Tokuyama 3: OM Materials Ph 2 (2016 & beyond) 1: Sakura 2: Asia Advanced Materials 3: Pertama Ferroralloys Ph 3 (2018 & beyond) 1: Cosmos Petroleum 2: Malaysian Phosphate 10/04/2017 11 3: Elkem
Samalaju Industrial Park Centre for heavy & energy intensive industries More than 8,000 ha of land Located 62 km away from Bintulu town 12
Section 2 CMS Overview 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 10/04/2017 14
Company Snapshot Sarawak’s largest company in Key Statistics infrastructure development One of Sarawak’s largest listed company, with Issued Shares: 1074.38 mn over 2,500 employees plus 1,691 in its 3 Market Share Price: RM4.32 associate companies. metrics Market Cap: RM4,641.3 mn as at 10 April Incorporated in 1974; Listed on KLSE in 1989. Historical PER: 27.4 x 2017 PBV ratio: 2.29 x Formerly a construction conglomerate BUT TODAY, CMS has a sustainable and profitable Revenue: RM1,551mn portfolio of businesses focussing on Sarawak and Income PBT: RM302mn SCORE. statement Basic EPS: 15.75 sen Substantial shareholders Shareholding (FYE Dec 2016) % (as of 10 April 2017) (‘000) DPS*: 6.3 sen Majaharta Sdn Bhd 134,775 12.54 Total assets: RM3,451 mn Employees Provident Fund 134,391 12.51 S/holders’ funds: RM2,213 mn Balance Sheet Lejla Taib 111,000 10.33 (FYE Dec 2016) NA per share: RM2.06 Net Cash per share (of Dato Sri Sulaiman AB Rahman Taib 88,395 8.23 RM0.50 each) RM0.43 Sarawak Economic Development 60,896 5.67 ROE: 8.00% Corporation Key ratios (FYE ROA: 4.90% Dato Sri Mahmud Abu Bekir Taib 60,286 5.61 Dec 2016) Public float: c. 35% Current ratio: 1.99x 15 *Subject to shareholders’ approval at the forthcoming AGM
Overview of Key Business Segments ICT Cement Construction Construction & Samalaju Strategic Property Division Materials & Trading Road Maintenance Development Investments Development Listed 25% investment Responsible for 5 Owns 2 large 25.07% stake in 50% non- Sole cement & Involved in in OMS quarries, 8 land banks in Kenanga IB controlling stake clinker wide range of ferrosilicon & premix plants, a Kuching. in SACOFA – a construction & manufacturer in 20% stake in manganese wire production tele- Sarawak. road KKB smelter (in line & trading communications maintenance production) Engineering Planned new business infrastructure projects across 40% investment township & Unlisted arm Sarawak. service centre & in MPA Sarawak CMS Opus workers – phosphate accommodation Tunku Putra complex in Samalaju School (production 2018+) Strong growth Core divisions generating bulk of group revenue and Uncover growth Future growth Hidden gem to potential with earnings, will continue to grow in tandem with Sarawak’s potential within driver be unlocked value added by growth story the ICT sector CMS Profitable businesses focus on Sarawak & SCORE development 16
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