Results Presentation for 4Q 2019 Winner of Member of Bursa - PowerPoint PPT Presentation

Results Presentation for 4Q 2019 Winner of Member of Bursa Malaysia’s “CSR Leadership Gold Award” Green Lane Policy for CG 27 February 2020 Top 4 Employer of Choice in Constituent of MSCI Malaysia Sarawak: JobStreet.com Small Cap Index InterContinental, KL

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

Contents I Organization Chart II Business Overview III Financial Highlights IV Sustainability & Governance Achievements V Group Outlook 3

I. Organization Chart 4

I.A ║CMS Board of Directors Y Bhg Tan Sri Abdul Rashid Bin Abdul Manaf Y Bhg Dato Sri Mahmud Abu Bekir Taib Y Bhg Dato Isaac Lugun Group Chairman Deputy Group Chairman Group Managing Director Independent, Non-Executive Director Non-Independent, Non-Executive Director Y Bhg Datuk Seri Yam Kong Choy Chin Mui Khiong Umang Nangku Jabu Y Bhg Datuk Ir Kamarudin Zakaria Independent, Non-Executive Director Independent, Non-Executive Director Non-Independent, Non-Executive Director Non-Independent, Non-Executive Director 5

I.B ║Senior Management Key Business Divisions Key Head Office Functions Suhadi bin Sulaiman Dato Isaac Lugun CEO of Cement Division CEO of Construction Materials Group Managing Director & Trading Division (14 years in CMS) (23 years in CMS) Vincent Kueh Hoi Chuang Karim Reduan ED/CEO of the Property CEO of the Construction & Tuan Syed Hizam Alsagoff Development Division Road Maintenance Division Group Chief Financial Officer (7 years in CMS) (1 year in CMS) (14 years in CMS) Key Support Function Karl Vink Mohamed Zaid Zaini Chief Information Officer MD of Sacofa Sdn Bhd Wendy Yong San San (1 year in CMS) (5 years in CMS) Francis Lou Chee Ngee Senior General Manager, Group Internal Audit Group Human Resources Lim Lee Wan Dato Azam Azman Danny Sim Wei Min David Ling Koah Wi MD of Malaysian Phosphate COPE Private Equity Senior General Manager, Group General Counsel Additive Sdn Bhd (14 years in CMS) Group Procurement 6

II. Business Overview 7

II.A ║Overall Group Result 1. The Group reported a revenue of RM1.74 billion for FY2019, representing a 2% increase from FY2018 ’s revenue of RM1.71 billion. 2. The Group’s PBT of RM251.05 million for FY2019 decreased by 33% against FY2018 ’s PBT of RM372.32 million 3. The decrease in FY2019 performance was mainly due to minor loss from OM Materials (Sarawak) and lower contribution from Traditional Core Businesses except Construction Materials & Trading Division 4. Prospects for CMSB remains positive due to: I. Various initiatives and new strategies throughout all divisions II. Key economic drivers in the State 8

II.B ║Traditional Core Businesses - Cement RM million 1. For FY2019, reported revenue of RM601.62 million (FY2018: RM557.85 million) and PBT of RM73.11 million (FY2018: RM90.14 million) 2. Lower PBT mainly due to unscheduled maintenance and higher raw material prices 3. Going forward, the prospects for the Division buoyed by: Improving the clinker plant’s operational efficiency to reduce reliance on I. imported clinker to lower the plant’s maintenance cost; and II. Major infrastructure projects in Sarawak in the run-up to the 2021 State election will increase demand and revenue 9

II.C ║Traditional Core Businesses – Construction Materials & Trading RM million 1. For FY2019, reported revenue of RM596.99 million (FY2018: RM559.27 million) and PBT of RM92.70 million (FY2018: RM71.29 million) 2. Improved PBT by 9% excluding the reversal of provision of RM14.83 mil 3. Going forward, the prospects of the Division are: I. Commissioning of second line of 1.3 MTpa at Sibanyis quarry and contribution of 1 MTpa from the newly acquired Borneo Granite; II. Develop our own quarry sand supply source; and III. Ongoing Pan Borneo Highway and other road projects in the State to drive demand for construction materials 10

II.D ║Traditional Core Businesses – Construction & Road Maintenance RM million 1. For FY2019, reported revenue of RM502.45 million (FY2018: RM554.21 million) and PBT of RM42.26 million (FY2018: RM90.38 million) 2. We provide road maintenance for 3,300.65km of the State roads. 3. Going forward, the prospects of the Division are: Actively identifying opportunities to secure new road maintenance I. contracts as well as replenish our construction orderbook; Awarded a RM466.68 million Coastal Road package (Bintulu-Jepak II. Bridge) in March 2019 to PPES Works - CCCC JV and pursuing additional packages; and III. Major infrastructure projects in Sarawak in the run-up to the 2021 State election which will increase demand and revenue 11

II.E ║Traditional Core Businesses – Property Development RM million 1. For FY2019, reported revenue of RM136.26 million (FY2018: RM132.22 million) and PBT of RM20.06 million (FY2018: RM33.59 million) 2. Prospect for this division remains challenging due to softening property market but aided by : I. Development of new affordable housing; and II. Unlocking the value of our landbank in Kuching and Samalaju Industrial Park 12

II.F ║Strategic Investments ICT – SACOFA RM million 1. For FY2019, reported revenue of RM244.25 million (FY2018: RM232.64 million) and PBT of RM113.83 million (FY2018: RM107.90 million) 2. Has constructed, maintain and operate approximately 1,350 towers and more than 10,500 km of fibre optic cable 3. Maintaining lion market share in the State 4. Benefiting from Digital Economy transformation initiative and allocation of RM1 billion for the development of telco-infrastructure in the State 13

II.F ║Strategic Investments in SCORE – OM Materials (Sarawak) RM million OM MATERIALS (SARAWAK) 1. For 1H 2019, reported revenue of RM985.51 million (1H 2018: RM1,190.84 million) and PAT of RM21.23 million (1H 2018: RM194.26 million) 2. This is mainly due to weak commodity prices owing to slowing down of global economic activities. 3. However long-term prospect remains intact supported by its first quartile position in the global production cost curve. Expect higher economic of scale upon commencement of the 2 nd phase 4. 14

II.F ║Strategic Investments in SCORE – Malaysian Phosphate Additives (Sarawak) 1. The project is now implemented in 2 phases. Total investment for Phase I is approximately RM900 million to be funded via mixture of shareholders’ equity and long-term loan 2. Financing facility of RM400 million for Phase I is secured 3. Work on Phase I has commenced on 1 September 2018 and scheduled for completion and commissioning in 4Q 2020 15

II.F ║Strategic Investments – Kenanga RM million 1. For FY2019, reported revenue of RM650.82 million (FY2018: RM669.37 million) and PBT of RM42.95 million (FY2018: 28.85) 2. One of top three largest brokerage houses in Malaysia, with one of the largest pools of remisiers in the country 3. Continual focus on innovation, digitalization and productivity, as well as leverage on the commitment of its people to turn in a steadfast performance. 16

II.F ║Strategic Investments – KKB Engineering RM million For FY2019, KKB registered revenue of RM559.03 million (FY2018: RM412.48 1. million) and PBT of RM77.69 million (FY2018: RM29.49 million) 2. Going forward, we are positive on the prospects of this company backed by various projects including: Sarawak Water Supply Grid Program; I. Pan Borneo Highway project; II. Oil & Gas fabrication projects; and III. IV. The healthy order book of RM820 million will keep KKB occupied through FY21. 17

III. Financial Highlights 18