CORPORATE PRESENTATION May 2015 UMW MILESTONES 1917 1960s 1970 - - PowerPoint PPT Presentation

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CORPORATE PRESENTATION May 2015 UMW MILESTONES 1917 1960s 1970 - - PowerPoint PPT Presentation

Sep 10, 2023 161 likes •509 views

UMW Holdings Berhad CORPORATE PRESENTATION May 2015 UMW MILESTONES 1917 1960s 1970 1980s 1990s 2000s 2010s - UMW Oil & Gas - Oil & Gas Corporation Division Berhad listed - Awarded Toyota established as on Bursa UMWs

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SLIDE 1

UMW Holdings Berhad

CORPORATE PRESENTATION May 2015

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SLIDE 2

2

1917 1960s 1970 1980s 1990s 2000s 2010s

  • Chia Yee Soh

founded a small family business in Singapore

  • Awarded Komatsu

heavy equipment distributorship in ’65

  • Secured the

Toyota Forklift franchise in ’65

  • United Motor

Works (Malaysia) Holdings Berhad listed on stock exchange

  • Awarded Toyota

vehicle franchise in ’82

  • Permodalan

Nasional Berhad became major shareholder in ’87

  • Largest

shareholder in the 2nd national car project, Perodua, with Daihatsu Motor Co. Ltd. as the technology provider in ’93

  • Oil & Gas

Division established as UMW’s 4th core business in ‘02;

  • UMW is the official

Lexus distributor in ’06

  • Rebranding of

UMW in ‘08

  • UMW Oil &

Gas Corporation Berhad listed

  • n Bursa

Malaysia in ‘13

UMW MILESTONES

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SLIDE 3

3

SHAREHOLDING STRUCTURE

As At 29 May 2015

Market Capitalisation at RM10.72 per share (as at 29 May 2015) RM12.5 billion

Total Number Of Shares Component Of Bursa Malaysia Listing Sector Bloomberg code UMWH:MK 1,168,293,932 FTSE Bursa Malaysia KLCI (FBMKLCI) Main Market, Consumer Products Permodalan Nasional Berhad (PNB)/ PNB Managed Unit Trust Funds, 52.66% Employees Provident Fund Board, 16.15%

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

*

Other Local Shareholders, 14.44% Foreign Shareholders, 16.75%

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SLIDE 4

BUSINESS STRUCTURE

UMW TOYOTA MOTOR

  • Lexus
  • Toyota

PERUSAHAAN OTOMOBIL KEDUA

  • Perodua

Automotive

LUBRICANTS & FLUIDS

  • Pennzoil
  • Repsol
  • Grantt
  • GEP Fluids & Coolants

SHOCK ABSORBERS /HYDRAULIC POWER- STEERING PUMPS AND SYSTEMS

  • KYB

AUTO COMPONENTS

  • Filtration Products
  • Plastic Injection
  • Metal Stamping
  • DENSO Spark Plugs &

Wiper Blades

  • GEP Filters & Brake

Pads

Manufacturing & Engineering

HEAVY EQUIPMENT

  • Komatsu
  • Bomag
  • Schwing
  • Manitou
  • Rosenbauer
  • CASE
  • Massey Ferguson
  • LS

INDUSTRIAL EQUIPMENT

  • Toyota
  • Raymond
  • Aichi
  • Tokai
  • Tennant
  • GS Yuasa
  • BT
  • Fulmen

MARINE & POWER EQUIPMENT

  • CompAir
  • Honda
  • Mitsubishi
  • Cameron

Equipment Oil & Gas

UMW OIL & GAS CORPORATION BERHAD (55.72% subsidiary) DRILLING AND OILFIELD SERVICES ONSHORE DRILLING MANUFACTURING OF OCTG & LINE PIPES FABRICATION OF OIL & GAS AND OTHER STRUCTURES SUPPLY OF OILFIELD PRODUCTS

5

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SLIDE 5

5

DOMESTIC & INTERNATIONAL PRESENCE

Extensive Network – 13 countries

China Malaysia Thailand Indonesia Myanmar India Papua New Guinea Singapore Turkmenistan Australia Oman Automotive Equipment Manufacturing & Engineering Oil & Gas

Malaysia Branches Dealerships UMW Toyota Motor

  • Sdn. Bhd.

41 65 Topmark (Division of UMW Toyota) 5

  • Perusahaan Otomobil

Kedua Sdn. Bhd. (Associate) 41 142 UMW Industries (1985)

  • Sdn. Bhd.

16

  • UMW Industrial Power
  • Sdn. Bhd.

8

  • UMW (East Malaysia)
  • Sdn. Bhd. (Sabah &

Sarawak) 9

  • UMW Equipment
  • Sdn. Bhd.

5

  • Toyota Capital Malaysia
  • Sdn. Bhd. (Associate)

5

  • Total

126 202 Total Staff Strength (as of May 2015) 13,315

Vietnam Taiwan

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SLIDE 6

AUTOMOTIVE Operations

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SLIDE 7

UMW AUTOMOTIVE DIVISION

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 Auto Corporation 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

  • f motor vehicles

Investment holding Marketing and distribution of motor vehicles, related spare parts and

  • ther related activities

Manufacturer

  • f car seats

Manufacturer and supplier of exhaust systems Assembler of vehicles

Ingress Technologies

  • Sdn. Bhd.

Manufacture 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

  • f Toyota vehicles and

related parts Investment holding and management services 39% Toyota Motor Corporation 10% Toyota Tsusho Corporation 20% Daihatsu Motor Co., Ltd 20% MBM Resources Bhd 10% PNB Equity Resource Corporation Sdn Bhd 4.2% Mitsui & Co., Ltd 2.8% Mitsui & Co., ( Asia Pacific) Pte Ltd 5% Daihatsu (Malaysia) Sdn Bhd 30%

Toyota Capital Malaysia

  • Sdn. Bhd.

Hire purchase financing of Toyota, Lexus and Perodua customers

* ** 51% 38%

51% 51%

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SLIDE 8

8

TOTAL INDUSTRY VOLUME (TIV)

  • The TIV for 2014 closed at 666,465 units. MAA’s forecast TIV for 2014 was 680,000

units.

  • Target for 2015 is 680,000 units (+2% growth).
  • Lower sales in 2011 was due to the supply-chain disruption caused by the earthquake

and tsunami in Japan and the floods in Thailand.

TIV % Change Over Previous Year RHS Total Industry Volume – Unit Sales LHS

405,745 487,605 552,316 490,768 487,176 548,115 536,905 605,156 600,123 627,753 655,793 666,465

  • 6.7%

20.2% 13.3%

  • 11.1%
  • 0.7%

12.5%

  • 2.0%

12.7%

  • 0.8% 4.6%

4.5% 1.6%

  • 100%
  • 80%
  • 60%
  • 40%
  • 20%

0% 20% 40% 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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SLIDE 9

9

LEXUS & TOYOTA

  • Official Lexus distributor in Malaysia since 2006.
  • Vios was our top selling model in 2014 with 41% of total sales. Hilux was second with

25%.

  • The new Camry and Camry Hybrid was launched on 2 April 2015.
  • Target for 2015 is 90,000 units.

40,239 51,700 91,003 81,808 82,188 101,839 82,089 91,990 88,662 106,622 92,521 103,636

9.9% 10.6% 16.5% 16.7% 16.9% 18.6% 15.3% 15.2% 14.8% 17.0% 14.1% 15.6%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 50,000 100,000 150,000 200,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Toyota Market Share Of TIV RHS Toyota Unit Sales LHS

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SLIDE 10

10

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 Nepal.

  • Malaysia’s first energy-efficient vehicle, Perodua Axia, was launched on 15 September

2014.

  • Target for 2015 is 208,000 units.

124,008 121,804 139,680 155,419 162,152 167,393 166,736 188,641 179,989 189,137 196,071 195,579

30.6% 25.0% 25.3% 31.7% 33.3% 30.5% 31.1% 31.2% 30.0% 30.1% 30.1% 29.3% 0% 10% 20% 30% 40% 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Perodua Market Share Of TIV RHS Perodua Unit Sales LHS

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SLIDE 11

11

  • UMW companies sold 299,215 units in 2014 with a market share of 45%.

UMW Toyota 103,636 15.6% Perodua 195,579 29.3% Others 367,250 55.1%

UMW GROUP’S MARKET SHARE

Units & Market Share (%) In 2014

Brand 2014 2013 Market Share % Units Market Share % Units Proton Honda Nissan Hyundai, Kia Volkswagen Others 17.4 11.6 7.0 2.5 1.3 15.3 115,783 77,495 46,352 16,886 8,916 101,818 21.2 7.9 8.1 2.5 1.5 14.9 138,753 51,544 53,156 16,537 9,619 97,592 Total 55.1 367,250 56.0 367,201 2013 196,071 29.9% 2013 92,521 14.1% 2013 367,201 56.0%

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SLIDE 12

200 300 400 500 600 700 800 900 1,000 1,100 RM ‘000 60 80 100 120 140 160 180 20 40 60 80

AUTOMOTIVE DIVISION Models and Price Range

8 models RM242k-1.09m 11 models RM65k-393k 3 models RM24.6k-65k

Toyota Avanza Toyota Alphard

Perodua Axia Perodua Alza

Top Selling Models Perodua - Myvi Toyota - Vios

Lexus LS 600hL

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SLIDE 13

OIL & GAS Operations

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SLIDE 14

14

UMW OIL & GAS CORPORATION BERHAD

(55.72% subsidiary)

Upstream

  • Offshore Drilling
  • Workover
  • Oilfield Services
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SLIDE 15

15 Offshore Drilling

UMW DRILLING CO/UMW JDC DRILLING

Company

  • UMW Drilling co-owns semi-submersible drilling rig, NAGA

1, on 50:50 venture with Japan Drilling Company; since 2005.

  • Drilling depth of 30,000 feet
  • Operating water depth of 985 feet

Customer

  • Petronas Carigali Sdn. Bhd. since 2005.

Status

  • The current contract duration is for five (5) years which

commenced on 13th November 2010 and ends on 12th November 2015, valued at USD250 million.

  • During the period, rig upgrading works were carried out for

a duration of 281 days from 13th April 2012 until 18th January 2013. In view of this, the current contract expiry date is therefore extended to 19th August 2016, which represents an additional 281 days, as per the duration of the rig upgrading works. The terms and conditions of the contract however remained the same.

  • In addition, Petronas Carigali has awarded a contract

extension for a further period of two (2) years commencing 20th August 2016, valued at USD130 million.

NAGA 1

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SLIDE 16

16

UMW OIL & GAS CORPORATION BERHAD

  • Malaysia’s only owner-operator of jack-up drilling rigs.

JACK-UP DRILLING RIG CUSTOMER CONTRACT VALUE (USD) CONTRACT DURATION ESTIMATED EXPIRY UMW NAGA 2 PetroVietnam Drilling & Well Services Corp (PV Drilling) 62 million 1 year April 2015 UMW NAGA 3 Japan Vietnam Petroleum Company 105 million 2 year May 2015 UMW NAGA 4 PETRONAS Carigali Sdn. Bhd. 157.68 million 3 years April 2016 2-year option for renewal. April 2018 UMW NAGA 5 PTTEP International Limited, Thailand - the rig is operating at offshore Myanmar 51.3 million Five firm wells (about 250 days) June 2015 PetroVietnam Drilling & Well Services Corp (PV Drilling) for end-client Korea National Oil Corporation 18.7 million About 100 days October 2015 UMW NAGA 6 PetroVietnam Drilling & Well Services Corp (PV Drilling) 46.5 million Four firm wells (about 250 days) June 2015

  • Working on optional wells

October 2015 UMW NAGA 7 Bidding for contracts UMW NAGA 8 Delivery : September 2015

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SLIDE 17

17 Workover

UMW PETRODRIL (MALAYSIA) SDN BHD

Company

  • Provides workover related services with hydraulic workover units

(HWU)

  • Sole Malaysian owner and operator of HWUs and a PETRONAS

licensed HWU services provider. Customer

  • Petronas Carigali Sdn. Bhd.
  • Petrovietnam Drilling & Well Services Corp (PV Drilling)
  • PTTEP International Limited, Thailand

Status

  • Currently owns 5 HWUs.
  • HWUs are operating in Malaysia, Vietnam and Thailand.
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SLIDE 18

UMW Oilpipe Services Sdn Bhd UMW-OG’s OCTG threading, inspection and repair service facilities in Malaysia, Thailand, China and Turkmenistan focus

  • n premium connections.

2 plants located in Labuan offering premium OCTG threading, inspection and repair services

Owner of quality oilfield services assets, including a threading facility in Malaysia with 22 CNC lathe machines

Was the first threading plant in Malaysia to be approved in API Q1 and API 5CT specifications

Number of threaded joints from 2010 to 2012:

UMW Oilpipe Services (Turkmenistan) Ltd UMW Oilfield Services (Tianjin) Co Ltd

Located in Tianjian, China

‘One-stop shop’ multi premium connection threading base, inspection and related workshop services

Received appreciation letter from Schlumberger China and awarded one of the ‘best supplier’ under Schlumberger’s global supplier system in 2012

Unit threaded (connections) from 2010 to 2012

UOT (Thailand) Limited

Located in Songkhla and Sattahip, Thailand

Focus on repair of damaged threaded pipes and the threading of OCTG and accessories

Number of threaded joints from 2010 to 2012

Located in Turkmenbashy, Turkmenistan

Provides machine shop services for repair and threading of casing, tubing and oilfield accessories, tubular inspection and hardbanding of drill pipes and collars

Mainly supports PETRONAS’ subsidiary in Turkmenistan’s offshore fields in the Caspian Sea.

UMW-OG’s operations are pan-Asian, with high quality assets characterised by high precision and accuracy capabilities

13,672 20,942 21,000

2010 2011 2012

17,208 17,024 16,505

2010 2011 2012

9,622 11,696 17,299

2010 2011 2012

Oilfield Services

OCTG Threading, Inspection & Repair Services

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SLIDE 19

EQUIPMENT Operations

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20

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

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SLIDE 21

21

Heavy Equipment

KOMATSU FRANCHISE

  • Komatsu franchise in Malaysia, Singapore, Myanmar and Papua New

Guinea

  • Market share range from 20% to 43%.
  • Has strong presence in Myanmar, supplying equipment to the jade mining

and resource mining sectors.

  • August 2014 – Secured contract worth RM200 million to supply more than

60 units of Komatsu equipment in Myanmar.

Malaysia Papua New Guinea Myanmar Singapore

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SLIDE 22

22

  • Strong market leadership position
  • 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.

  • Toyota Forklift – UMW is one of the Top 5 Distributors in the world.
  • Toyota forklift maintained its 50% market share in Malaysia’s material handling

equipment business.

  • No. 1 position in Malaysia since 1972.
  • Have ventured into leasing of Toyota forklifts.

Industrial Equipment

TOYOTA FORKLIFT FRANCHISE

Malaysia Singapore Brunei Vietnam China Shanghai, Zhejiang

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SLIDE 23

MANUFACTURING & ENGINEERING Operations

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SLIDE 24

24

KEY PRODUCTS

Auto Components Lubricants & Fluids Shock Absorbers, Hydraulic Power- Steering Pumps and Systems Auto Components Fluids & Chemicals Lubricants & Fluids (China)

LUBRICANTS AUTO COMPONENTS

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SLIDE 25

25 Fluid & Chemicals In China

LUBRICANT BLENDING PLANT

  • JV with Dah Chong Hong (Motor Service Centre) Limited

to develop the business of manufacturing/processing of lubricants (the wholly-owned subsidiary of Dah Chong Hong Holdings Ltd, a company listed on the HKEx, and principally involved in the motor and motor-related business, foods and consumer products, as well as logistics services)

  • Plant is in Xinhui, Guangdong Province
  • Started operations in January 2011
  • Production capacity of 30,000 tonnes (1 shift) and

50,000 tonnes (2 shifts)

  • March 2013 – received TS16949 certification – the

International Quality Management Standard specifically established by the automotive industry.

  • Sole supplier of premium lubricants for First

Automobile Works of China (FAW) which assembles cars under Mazda, Red Flag and Besturn brand marques.

  • The company also supplies to Wurth and Blue Star.

China 中国

Guangdong Province

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SLIDE 26

26 Auto Components In India

MANUFACTURE OF COMPONENTS India

Pune (Maharashtra) Chennai (Tamil Nadu)

  • UMW Dongshin Motech is a major original

equipment manufacturer (OEM) for stamped automotive body parts for car manufacturers in India.

  • Sathya Auto manufactures mechanical jacks,

radiator caps and sheet metal components.

  • Castwel Autoparts manufactures aluminium gravity

die castings, aluminium alloys, water pump body, cover and brackets.

  • Our customers in India include General Motors,

Volkswagen, Tata, Hyundai.

  • July 2014 – Announced proposal to dispose these

companies; expected to be completed by 15 July 2015.

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SLIDE 27

27

Manufacturing & Engineering

KYB-UMW MALAYSIA SDN. BHD.

  • Shareholding structure.
  • UMW Corporation Sdn. Bhd.

41.2%

  • KYB Corporation, Japan

33.4%

  • UMW Toyota Motor Sdn. Bhd.

21.4%

  • Toyota Tsusho (M) Sdn. Bhd.

4.0%

  • Incorporated in June 1983.
  • Both OEM and REM supplier.
  • Currently exports to 27 countries.
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SLIDE 28

FINANCIAL HIGHLIGHTS

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SLIDE 29

29 AUTOMOTIVE EQUIPMENT M & E OIL & GAS

10-YEAR GROUP FINANCIAL HIGHLIGHTS

Revenue (RM million)

9,869 9,950 9,976 12,770 10,721 12,820 13,536 15,817 13,952 14,933

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

658 754 856 1,277 847 1,313 1,365 2,020 1,436 1,622 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Profit Before Taxation (RM million)

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SLIDE 30

30 AUTOMOTIVE EQUIPMENT M & E OIL & GAS

10-YEAR GROUP FINANCIAL HIGHLIGHTS

Shareholders’ Funds (RM million)

5,721 5,103 6,491 7,828 8,826 10,024 10,541 11,491 14,595 16,520 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Total Assets (RM million)

2,131 2,342 2,560 3,130 3,522 3,774 4,027 4,249 4,848 6,290 6,581 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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Key Performance Indicators – Dividend Policy

ANNUAL DIVIDEND PAYOUT, 50% OF PROFIT NET OF UNREALISED GAINS

48.8 50.3 50.8 57.7 59.0 75.8 75.2 58.8 78.7 76.1 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Payout Ratio (%)

19.0 20.5 30.0 37.0 20.0 30.0 31.0 50.0 44.0 41.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Gross Dividend Per Share Of RM0.50 Each (sen) Target 50%

March 08 Share Split from RM1.00 to RM0.50 each

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SLIDE 32

Key Performance Indicators – Target ROSF

RETURN ON SHAREHOLDERS’ FUNDS

  • Exceeded minimum annual return on shareholders’ funds
  • In 2009, target was 10%. Achieved 10.5%
  • In 2010, target was 10%. Achieved 13.5%
  • In 2011, target was 10%. Achieved 11.7%
  • In 2012, target was 10%. Achieved 21.9%
  • In 2013, target was 10%, Achieved 11.7%
  • In 2014, target was 10%, Achieved 10.1%

12.7% 12.5% 16.5% 17.0% 10.5% 13.5% 11.7% 21.9% 11.7% 10.1% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

10% 10% 10% 10% 10% 10%

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‘AAA’ CORPORATE CREDIT RATING

  • On 20 May 2015, RAM Rating Services Berhad (RAM)

has reaffirmed the AAA ratings of UMW Holdings Berhad

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SLIDE 34

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 Email: vikneshwaran.s@umw.com.my Telephone: +603 5163 5000

THANK YOU

Dr Wafi Nazrin Abdul Hamid Executive Director Group Management Services UMW Corporation Email: wafi@umw.com.my