( UEMEd or the Company) PROPOSED DISPOSAL OF 61.20% EQUITY INTEREST - - PowerPoint PPT Presentation

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UEM EDGENTA BERHAD (“UEMEd” or the “Company”)

PROPOSED DISPOSAL OF 61.20% EQUITY INTEREST IN OPUS INTERNATIONAL CONSULTANTS LIMITED (“OIC”)

Contents

Section 1

Overview of the Proposed Disposal

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• OFFEROR

PROPOSAL BACKGROUND

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Section 2

Overview of the OIC Group

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539.6 505.2 470.9 226.8 FY2014 FY2015 FY2016 FPEJune 17 26.2 16.8

• 29.9

6.2 FY2014 FY2015 FY2016 FPEJune 17

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350.8 223.2 271.0 188.3 237.8 161.1 190.3 147.8 RM million UEM Edgenta OIC Contribution Revenue 2,931.0 1,359.7 46% Normalised PBT 237.8 47.5 20% Normalised PBT 8.1% 3.5% Normalised PATANCI 161.1 13.3 8% Normalised PATANCI 5.5% 1.0% 2,931.0 3,123.0 1,571.3 1,748.5 RM million UEM Edgenta OIC Contribution Revenue 3,123.0 1,374.5 44% Normalised PBT 350.8 79.8 23% Normalised PBT 11.2% 5.8% Normalised PATANCI 223.2 34.9 16% Normalised PATANCI 7.1% 2.5% 1,374.5 79.8 34.9 1,359.7 47.5 13.3

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0.6 0.8 1 1.2 1.4 1.6 1.8 2

Section 3

Key Terms of the Proposed Disposal

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Section 4

Rationale of Proposed Disposal

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Opportunity to unlock value of equity stake in OIC Reduce exposure in underperforming markets Strategic focus & Streamline operations

• Canada and Australia have been negatively impacted by offshore challenges

and slow-down in the oil & gas industry and the mining industry

• Streamline operations and re-allocate resources into other core businesses

i.e. healthcare, infrastructure and real estate sectors which are expected to continue to see positive returns

• No significant impact to UEMEd’s overall operations, as OIC has operated

largely independently.

• We will continue to retain and drive growth of Malaysian asset consultancy

business via OIM and will be able to continue to draw on experience and resources of OIC as a 3rd party consultant

• A premium of 93.9% against the share price as at 11 August 2017
• Disposal Proceeds of NZD173.8 million/RM528.6 million
• An estimated gain on disposal of RM292.3mil

Enhance gearing position & Savings of financing costs

• Gross Gearing to reduce from 0.64x to 0.22x (Proforma as per 31 Dec 16)
• Estimated savings of financing costs of RM20.0 mil over 2 years

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NA per Share (RM) Gross Gearing (x)

Audited as at 31 December 2016 RM’000 Proforma - After the Proposed Disposal RM’000

1.65 1.97 0.64 0.22 PATANCI 80,056 368,983 EPS (sen) 9.68 44.63

% Movement

+19.39%

• 65.63%

+360.91% +361.05%

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Purpose RM million Timeframe (from completion) Repayment of borrowings(1) 415.2 Within 6 months For general corporate purposes and working capital(2) 110.0 Within 24 months Estimated expenses for the Proposed Disposal 3.4 Within 1 month Total 528.6

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Current Business Segmentation Business Segmentation Post Disposal of OIC

CONSULTANCY SERVICES SOLUTIONS HEALTHCARE INFRASTRUCTURE REAL ESTATE WATER CONSULTANCY SERVICES SOLUTIONS HEALTHCARE INFRASTRUCTURE REAL ESTATE

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Healthcare Sector Infrastructure Sector Real Estate Sector OPERATIONAL FOCUS

• Driving Operational Excellence and Organisational Excellence to improve performance delivery ofour services
• Implementation of Enterprise Resource Planning (ERP) to enhance back-end support system and integration of

processes

• Technology Enablers (UETrack, Command & Contact Centre, Communa)

ORGANIC GROWTH

• Actively pursuing project opportunities (e.g:SKLIA,MRT, HSR)
• Harnessing revenue synergies and cross selling opportunities (Expanding Offerings into commercial healthcare

sector)

• Expanding portfolio (Expanding township and building portfolio in southern region)
• Core markets (Malaysia, Indonesia, Singapore, Taiwan and Middle East)

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• We will be able to streamline our operations and re-allocate resources into our

core businesses

• It is an opportunity for us to unlock value of our equity stake in OIC with

estimated gain of RM 292.3 million

• Our exposure in underperforming markets will be reduced
• There will be no significant impact to UEMEd’s operations, as OIC has operated

largely independently

• We will still retain OIM, an entity that focuses on project management and

design consultancy operating in Malaysia and Indonesia

• We will be able to continue to draw on experience and resources of OIC as a 3rd

party consultant and by extension, WSP’s wide ranging engineering capabilities

• We will focus on 3 key offerings across 3 key sectors, i.e.

Healthcare, Infrastructure & Real Estate

• Deliver organic growth & focus on operational and organisational excellence

UEMEd’s Asset Consultancy Offering Business Focus & Strategic Direction Key Rationale

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