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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

• f 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

• r 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.

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Today’s Presenters

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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.  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.

Tuan Syed Hizam Alsagoff Group Chief Financial Officer

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

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Section 1

Sarawak Overview

Malaysia Sarawak ▪ Area: 330,250 Sq.Km ▪ Population: 28.5 Million ▪ Capital City: Kuala Lumpur ▪ Number Of State: 13 ▪ Area: 124,449 Sq.Km ▪ Population: 2.5 Million ▪ Capital City: Kuching ▪ Number Of Division: 11

South China Sea

Area and Population

6

Sarawak

10/04/2017

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) (km2)

• Corridor Authority Regional Corridor Development Authority (RECODA)

7

State Credit Rating

Standard & Poor’s

A- Stable Outlook

Moody’s Investors Services

A3 Stable Outlook

Ram Rating Services AAA Strong Outlook Malaysia Rating Corp. AAA Strong Outlook

8 10/04/2017

5 Growth Nodes of SCORE

• 1. ACCESS ROAD 62KM TO

MURUM HEP

• 3. PROPOSED ACCESS ROAD

73KM TO BALEH HEP

• 5. PROPOSED ACCESS ROAD

TO TUNOH

• 2. ACCESS ROAD 127KM TO

BARAM HEP

• 6. SAMARAKAN/SANGAN/ NG.

MERIT/KAPIT ACCESS ROAD 159KM

• 4. PROPOSED ACCESS ROAD

TO LIMBANG HEP

• 11. MUKAH WATER SUPPLY
• 8. WATER SUPPLY TO

SAMALAJU ( Phase 1 Stage 1) Bintulu Mukah Miri Lawas Limbang KAPIT BAKUN HEP (2,400 MW) BALEH HEP (1200 MW) BARAM HEP (1000 MW) LIMBANG HEP (150 MW) Long Lama Belaga Beluru MURUM HEP (990 MW) Tunoh TANJUNG MANIS

• 10. TG MANIS WATER SUPPLY
• 12. JALAN HAB HALAL TG MANIS
• 7. PROPOSED NEW MUKAH

AIRPORT

• 9. WATER SUPPLY TO

SAMALAJU ( Phase 1 Stage 2) SAMALAJU INDUSTRIAL PARK

• TG. MANIS HALAL HUB DEV’T
• TG. MANIS TELECOM.

Kanowit

Song

Samalaju Baram Tunoh Samarakan

Baleh bridge Sangan – Sg. Anap 18km B1 : 16km

Samalaju

Heavy and Energy Intensive Industries

Mukah

Smart City, Services Hub & R&D

Baram HEP, Oil Palm and Forest Plantation Eco-Tourism

Tunoh

Oil Palm and Forest Plantation, Agriculture and Eco-Tourism

Tanjung Manis

Halal Hub

SIBU SARIKEI BATANG AI HEP (100 MW) BETONG SRI AMAN KUCHING SAMARAHAN

9

Summary of Investment by Growth Nodes

No. Growth Node

• No. of

Project Investment (RM Bn) Jobs Land (ha) Water (MLD) Electricity (MW) Gas (mil. 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

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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 3: Elkem

Industrial Plot Development Phasing

 Centre for heavy & energy intensive industries  More than 8,000 ha of land  Located 62 km away from Bintulu town

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Samalaju Industrial Park

13

Section 2

CMS Overview

Our Vision & Mission

VISION

To be the PRIDE of Sarawak & Beyond

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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

STAKEHOLDERS

\

Shareholders, Staff, Customers & Community

Substantial shareholders (as of 10 April 2017) Shareholding (‘000) % Majaharta Sdn Bhd 134,775 12.54 Employees Provident Fund 134,391 12.51 Lejla Taib 111,000 10.33 Dato Sri Sulaiman AB Rahman Taib 88,395 8.23 Sarawak Economic Development Corporation 60,896 5.67 Dato Sri Mahmud Abu Bekir Taib 60,286 5.61

Company Snapshot

Sarawak’s largest company in infrastructure development

Total assets: RM3,451 mn S/holders’ funds: RM2,213 mn NA per share: Net Cash per share (of RM0.50 each) RM2.06 RM0.43

Key Statistics

Revenue: RM1,551mn PBT: RM302mn Basic EPS: 15.75 sen DPS*: 6.3 sen

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ROE: 8.00% ROA: 4.90% Current ratio: 1.99x Issued Shares: 1074.38 mn Share Price: RM4.32 Market Cap: RM4,641.3 mn Historical PER: 27.4 x PBV ratio: 2.29 x

Balance Sheet (FYE Dec 2016) Income statement (FYE Dec 2016) Key ratios (FYE Dec 2016) Market metrics as at 10 April 2017  One of Sarawak’s largest listed company, with

• ver 2,500 employees plus 1,691 in its 3

associate companies.  Incorporated in 1974; Listed on KLSE in 1989.  Formerly a construction conglomerate BUT TODAY, CMS has a sustainable and profitable portfolio of businesses focussing on Sarawak and SCORE.

Public float: c. 35%

*Subject to shareholders’ approval at the forthcoming AGM

Overview of Key Business Segments

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Cement  Sole cement & clinker manufacturer in Sarawak.

Construction Materials & Trading

 Responsible for 5 quarries, 8 premix plants, a wire production line & trading business

Construction & Road Maintenance

 Involved in wide range of construction & road maintenance projects across Sarawak.

Samalaju Development

 25% investment in OMS ferrosilicon & manganese smelter (in production)  40% investment in MPA Sarawak – phosphate complex (production 2018+)

Property Development

 Owns 2 large land banks in Kuching.  Planned new township & service centre & workers accommodation in Samalaju

Strategic Investments

Listed  25.07% stake in Kenanga IB  20% stake in KKB Engineering Unlisted  CMS Opus  Tunku Putra School Core divisions generating bulk of group revenue and earnings, will continue to grow in tandem with Sarawak’s growth story Future growth driver Strong growth potential with value added by CMS Hidden gem to be unlocked Uncover growth potential within the ICT sector

ICT Division

 50% non- controlling stake in SACOFA – a tele- communications infrastructure arm

Profitable businesses focus on Sarawak & SCORE development

Datuk Syed Ahmad Alwee Alsree, Group Executive Director (13 years in CMS).

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Experienced Management with Proven Track Record

Centre Key Business Divisions

Dato Isaac Lugun, CEO of Samalaju Industries (21 years in CMS). Goh Chii Bing, ED/CEO of Cement Division (25 years in CMS) Dato’ Richard Alexander John Curtis, Group Managing Director (11 years in CMS). Lim Jit Yaw, CEO of the Construction & Road Maintenance Division (11 years in CMS) Vincent Kueh Hoi Chuang, ED/CEO of the Property Development Division (5 years in CMS) Chong Swee Sin, CEO of Construction Materials & Trading Division (26 years in CMS). Tuan Syed Hizam Alsagoff, Group Chief Financial Officer (12 years in CMS). Goh Chii Yew, CEO

• f

Samalaju Property Division (16 years in CMS). Mohd Zaid Zaini, Head of ICT Division (3 years in CMS)

Corporate Milestones

18

 Established as Cement Manufacturers Sarawak.  Listed on KLSE.  Adopted current name.  Acquired RHB Bhd  Disposal of CMS Roads and Pavement to UBG Bhd.  Acquired 20% stake in KKB Engineering Bhd.  Commenced manufacturing Ordinary Portland Cement at Sarawak’s 1st grinding plant.  Rapid business expansions via acquisition of infrastructure related businesses.  Diversification into new businesses.  Restructuring of financial services business.  CMS’ futures & stockbroking businesses merged with K&N’s in exchange for shares in K&N.  Disposed RHB Bhd for RM2.25b.  Disposal

• f UBG

Bhd.  Re-acquired CMS Roads and Pavement.

Rationalisation of businesses to focus on key competencies in Sarawak & SCORE

1974 1978 2001 1996 1994 1989 2008 2007 2002 2010

 Ceased

• peration
• f loss

making IT companies .

2009

 Signed JVA with MPA to develop a RM2.00b phosphate plant.  OM Materials achieved commercial production

2011

 Acquired 50% non- controlling stake in SACOFA

2016 2013 2014 2015

 MPA signed both PPA & EPC agreements  Launched East Malaysia’s First Integrated Cement Plant

Share Price Performance

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High Low 2014 RM 4.72 RM 1.47 2015 RM 6.00 RM 3.87 2016 RM 5.36 RM 3.17 2017 RM 4.35 RM 3.83

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Section 3

Business Overview

10/04/2017

523 515 548 560 532 66 97 120 103 105 200 400 600 2012 2013 2014 2015 2016 Revenue PBT

• 1. Cement Division

 Group’s core PBT driver (34% of revenue; 35% of PBT in FY2016).  Sole cement & clinker manufacturer in Sarawak.  Well positioned to leverage on increased construction activities in the state.

 Sarawak’s sole cement manufacturer with a 2.75m Mtpa capacity  Runs at approx. 60% capacity thus ensuring consistent supply of cement & ensuring sufficient capacity to meet State’s growing demand  New 1m MTpa plant in Mambong has commissioned  Future plans: To setup an unloader crane at the Bintulu grinding plant .  Sarawak’s sole clinker manufacturer with quarry reserves of 50+ years.  Sole 0.84m MTpa plant is currently fully utilised.  Upgraded plant (in 2012/2013) runs on cheaper coal alongside a 10+% capacity expansion.  Future plans: Assess option of 2nd clinker line for total self sufficiency & marginal exports and expansion of its quarries

Clinker

 Leading manufacturer of pre-cast concrete products and ready mix supplier  70k MTpa facility for concrete products, running at 50-60% utilisation rate.  70k MTpa IBS plant with an 82% utilisation rate.  Provides installation services for IBS products  Future plans: Increase IBS and concrete products & possible second IBS plant in Central Sarawak

Cement Concrete Products

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Cement Supply & Demand in Sarawak

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NOTES 1) All cement imports were by CMS Cement with negligible profit contribution. 2) Cement exports are on a token scale to Kalimantan, Labuan & Sabah, though long term Kalimantan has potential to grow due to on-going cement shortages.

 Local demand outgrew local cement production between 2012 – 2015 as the 2 grinding plants ran close to maximum capacity (c.90%+).  Local production exceeded local demand in 2016 as the new Mambong plant came on stream.  The new plant allows for a significant reserve production capacity to reduce the risk of supply disruptions, to potentially extend supply into nearby markets & to produce more than one type of cement.

500 1,000 1,500 2,000 2,500 3,000 2010 2011 2012 2013 2014 2015 2016

'000 MT

Sarawak Cement Demand & Production

Cement Imports Annual Sales by CMS Cement CMS Cement Production

300 320 340 360 380 400 2010 2011 2012 2013 2014 2015 2016

Average Cement Retail Selling Price

Kuching Sibu Bintulu Miri

RM per MT

• 2. Construction Materials & Trading

10/04/2017

Sebanyis Quarry Pulled wires

Typical plant

 5 quarries in Kuching with licences of up to 20 years.  3.45m MTpa of rated capacity, or an equivalent 35% market share.  Production capacity at Sibanyis increased from 350 MTph to 500 MTph in 2Q 2015.  Future plans: To increase production capacity at Sibanyis to 1.30m Mtpa by end 2017; to identify potential quarries in the northern region; & to develop additional wharf facilities to improve transportation.  8 plants in Kuching, Sarikei, Sibu, Miri, Bintulu and Limbang to manufacture, deliver and lay Premix (asphaltic concrete), bitumen emulsion & cutback bitumen for use in roads and airport runways.  Capacity: 2 plants have rated capacities of 250 MTph, 2 of 150 MTph, 2 of 100 MTph or below and 1 mobile plant with capacity of 100 MTph. Market share of 60-70%.  Purchased two more 150 MTph mobile premix plants to meet the increasing demand for premix in Sarawak  Future plans: Setup new asphalt batching plants in Lundu, Serian & Sarikei Wires  One 5,500 MTpa plant manufacturing steel wires and wire mesh; Utilisation rate: 80+%; Market share: 20%  Rated Capacity: 5,500 MTpa Trading arm  Trades as agent / distributor;  Range of water management products, construction materials & systems, road management products, building protection systems, petroleum products and others

Quarries Premix Wires & Trading

 One of the core revenue and earnings drivers.  Accounted for 34% of group revenue and 28% of earnings in FY2016.  Complementing cement, construction and property development divisions. 23

281 393 599 645 532 41 55 76 108 107 200 400 600 800 2012 2013 2014 2015 2016 Revenue PBT

• 3. Construction & Road Maintenance

Undertakes construction, road & infrastructure projects (including specialist pavement laying). Holding concessions till 2017-2018 to maintain

• approx. 590km of the Federal roads and

5,600km of the State roads. Original role as a “cartel” breaker has expired and now following new strategies:

• bid in consortiums to harness multiple

competencies and to manage risks; and

• Targets smaller scale non tendered road

works.

• Focuses on niche construction projects e.g.

construction and water projects Future plans: To ensure the 2 key PBT anchors namely the State & Federal Road Concession contracts are renewed & expanded in scale/scope.

24

Jalan Mulukun, Kapit Road repairs

Strong recurring income from the road maintenance concessions.

Borneo Convention Centre Kuching

10/04/2017

235 289 364 444 358 81 95 84 135 94 200 400 600 2012 2013 2014 2015 2016 Revenue PBT

• 4. Property Development (Kuching)

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Potential growth to be unlocked from the vast undervalued development land bank

 Owns 2 large Kuching land banks & other small parcels (5,600 acres in total)  Strong potential for long term sustainable growth with ongoing steady land sales to underpin profits and to catalyse development of remaining parcels.  Integration of Samalaju Properties & Property Development’s resources is on track

*Note: Samalaju Properties & Samalaju Hotel have been reclassified to this Division starting 1 Jan 2016

60 75 114 90 104 24 31 46 20 24 20 40 60 80 100 120 2012 2013 2014 2015 2016 Revenue PBT

Development of Landbanks in Kuching, 2013

• 2018

Location %

• wned

by CMSB Acres

• Est. GDV

2013 – 2018 (RM million) Acres developed (2013- 2018) Type of Development Land Sales (2013 – 2018) Acreage RM mil Bandar Samariang Phase 1 (balance) & Part of Phase 2 100% 4,211 474 155 Mixed use – mid income 635 67.2 The Isthmus *51% 199 511 55 Mixed use – new CBD 5.0 9.9 Lot 9244 100% 19 262 19 Semi Detached, Condominiums

• Lane Park

Residences 100% 3.5 26.5 3.5 Boutique high end Semi-Detached

• Bintawa Lot 622

*51% 8 80 8 Commercial

• Bintawa Lot 2520

& 2521 *51% 35 350 35 Commercial with river frontage

• Toll Bridge land Lot

9882 100% 8 150 8 Mixed use – prime river frontage

• TOTAL

4,510.9 1,853.5 283.5 640.0 77.1 26

NOTE: Minority shareholder is Sarawak Economic Development Corporation (SEDC)

• 4. Property Development (Samalaju)

10/04/2017

27

CMS’ direct involvement in Samalaju covers: ▪ Planned new Township and service centre; ▪ Workers accommodation and related services; and ▪ Investments in 2 energy intensive industrial plants in SIP (slides 31 to 36).

Samalaju Industrial Estate Samalaju Resort Hotel

Samalaju Properties’ Landbank covers: 1.

• Approx. 2126 acres for Samalaju Eco Park (township)

1. 81 acres for Samalaju Central – a mix of commercial & industrial lots 2. 98 acres of beachfront land. 23 acres allotted to Samalaju Resort Hotel & remaining 75 acres is planned for commercial developments. 3.

• Approx. 206 acres is earmarked for a Light Industrial Park

(small & medium sized businesses)

Samalaju Resort Hotel

Property Development (Samalaju)

Key Highlights

Samalaju Eco-Park township of approx. 2,126

• acres. A first of its kind green township

development with a mix of residential and commercial developments Operating the only Government approved workers, supervisors & executive camps in Samalaju. The provision of accommodation and meals is expected to continue for up to 10 years pending completion of the planned permanent township. A Hotel / Serviced Units of 175 rooms is

• perational as soft opening was on 20 Dec

2014

10/04/2017 28

Workers Lodge Eating Area

• 5. ICT – SACOFA Sdn Bhd

 Is a one-stop centre providing telecommunication infrastructure in Sarawak ▪ Sole provider of telecommunication towers in the State ▪ Holding concessions till 2021 to build, manage, lease and maintain towers ▪ Has constructed over 1,000 towers & more than 10,000 km of fibre optic cabling in place  Future plans: To tap into the fast growing ICT business, to advance within the technology industry & to continue to work with the MCMC, State & Federal Govts. in support of the Rural Transformation programme  CMS has 50% non-controlling equity stake in SACOFA

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Jalan Mulukun, Kapit 155 153 172 182 195 85 67 80 119 98 50 100 150 200 250 2012 2013 2014 2015 2016 Revenue PBT

• 6. Strategic Investments - Listed

30

Both strategic investments have strong growth potential with value added by CMS and are not earmarked for divestment or takeover.

Concrete product manufacturing plant

Kenanga Investment Bank

• New management team installed in 2011

who revamped the business and changed its focus to more profitable areas.

• One of top three largest brokerage houses

in Malaysia,with one of the largest pools of remisiers in the country

• Collaborating with Rakuten Securities, Inc.
• f Japan to develop a new online broking

platform, bringing new exciting digital innovations to the Malaysian online broking scene

KKB Engineering

• Expansion into O&G are likely to create

new material growth opportunities.

• Secured a three-year Petronas-Approved

Supplier licence for “Offshore facilities Const-Major Onshore Fabrication”

• Associate OceanMight secured a major

project from Talisman Malaysia for EPC works relating to the wellhead platforms for the Kinabalu Redevelopment Project - scheduled to be complete by mid-2017

25.38% 20.05%

Market Value as of 10/04/2017: RM108.22 million Market Value as of 10/04/2017: RM69.77 million

31

SCORE - Background

 One of the 5 development corridors by the Federal and Sarawak State Government to turn Sarawak into a developed state.  To lift the Sarawak’s economy by increasing income per head and improve the quality of life for the people of Sarawak.  Core ~ energy resources: Hydropower (28,000 MW), coal (1.46 billion MT) and natural gas (40.9 trillion sq cubic ft).

Source: ADL Analysis, EPU Sarawak

 Expected investment of up to RM334 billion (20% from govt. and 80% from private sector).  CMS is set to be a major local participant of developments under SCORE.

Project Product Commencement of Operation Annual Capacity Investment Value (USD) Status Tokuyama Polycrystalline Silicon 1st Phase: Jun 2013 2nd Phase: Apr 2014 1st Phase: 6,200 MT 2nd Phase: 13,800 MT 2.5 billion In Operation/Pending Sale to OCI Co Ltd (of

• S. Korea)

Press Metal Aluminium Sep 2012 1st & 2nd Phase: 440,000 MT Full Capacity: 760,000 MT 2 billion In operation AML (Pertama Ferroalloy) Manganese Ferroalloy 2016 Full Capacity: 434,000 MT 325 million Commissioned - June 2016 Asia Advanced Materials Metallic Silicon 2017 Full Capacity: 100,000 MT 203 million Earthwork completed Sakura Ferroalloys Ferro manganese & Silicon Manganese 2016 Ferro Manganese: 100, 000 MT Silicon Manganese: 60, 000 MT 328 million Commissioned - May 2016 Cosmos Chemicals High quality solar and electronics grade polysilicon 2017 25,000 MT 1.6 billion Pre-earthwork stage OM Materials (Sarawak) Ferrosilicon Alloys & Manganese Alloys Partially Commissioned: 2H 2014 Full production: 2H 2017 Ferrosilicon Alloys: 192,500 MT Manganese Alloys: 200,000 MT – 300,000 MT 458 million (Next slides) MPA (Sarawak) Phosphate Products & Coke Commission: 1H 2018 Full production: 2H 2018 Phosphate Products: 500,000 MT Ammonia: 100,000 MT Coke: 900,000 MT 545 million (Next slides)

Key Projects at Samalaju Industrial Park

32

Samalaju Development – OM Materials (Sarawak)

Shareholders  CMS (25%)  OM Holdings Ltd (75%), ASX listed & one of the world’s largest manganese ore producers Forecasted Plant Capacity Ferrosilicon Alloys: 192,000 MTpa; and Manganese Alloys (silicomanganese & high carbon ferromanganese): 200,000 – 300,00 MTpa Cost/ Funding Capex USD 458.0m. 70% debt 30% equity Current Status R&R project financing with 5 Banks concluded during Q3 2016 9 furnaces were in-operation by end-January 2017 Key Dates Full production by end of Q2 2017 33

34

Samalaju Development – OM Materials (Sarawak) S/B

Logistically well located with the planned Samalaju port providing convenient access to growing Asian FA markets. 20 year 500mw Power Purchase Agreement already signed underpinning smelter’s competitive cost position. Part of a well established vertically integrated business of OM Holdings Ltd. Tried & tested technology & lump sum turnkey EPC with expected LAD for delays or performance shortfalls. Binding Off-take arrangements signed with JFE Shoji, Hanwa and Fesil Sales AS exceed 60% off-take of the project’s Phase 1 production. OM Sarawak’s position on the operating cost curve places it amongst the most competitive in 2015 on a CIF Japan basis. Steel production to grow at CAGR of 4.54% up to 2025 (which will feed through to FA demand), with projected production levels are likely to be remain below demand.

Key Economic Drivers

10-year tax holiday and no import and/or export duties drives the competitive advantage further

35

Samalaju Development – Malaysian Phosphate Additives (Sarawak)

Shareholders  CMS (40%)  Malaysian Phosphate Additives (40%), Phosphate producers since 2005 & have successfully developed

& commercialised its process technology for Phosphate products at the manufacturing facility in Lumut

 Arif Enigma Sdn Bhd (20%) Power 150 MW Plant Capacity 1.5 million MTpa of Phosphate & related products (by 2020) manufactured within 9 integrated plants Cost/ Funding Total investment is approximately RM 2.20 billion To be funded via mixture of shareholders’ equity & long-term bank funded debt Project Finance In active discussions with major financial institutions to select arrangers & line up lenders EPC EPC contract was awarded to SCEGC Equipment Installation Group & Norther Heavy Industries Group in May 2016 Off-take & Raw Materials Plan to sign long term commitments for 60% of each. This is progressing on schedule Key Dates Production start in H1 2018 and full production H1 2019

Samalaju Development - Malaysian Phosphate Additives (Sarawak)

Logistically well located directly across from Samalaju Port with conveyor belts and pipelines to transport raw materials and finished goods. Access to competitively priced reliable & long-term (20 years) power underpins the competitive cost in production for Phosphate. Agreements for key raw materials supply and production offtake are under negotiation to be signed up for approximately 60% of each. Diversifies CMS’s manufacturing business into a new segment with long term sustainable growth & future downstream investment

• pportunities

Integrated Phosphate products complex enables a variety of phosphate products beyond the primary product to be produced so production can switch between products to maximize margins Global demand for Phosphate products set to grow 2+% per annum reflecting both population growth, higher affluence & lack of alternative products. This will grow demand for animal feed, fertilizer, processed foods/beverages & detergents/cleaning materials.

Key Economic Drivers

Strong potential to attract downstream industries targeting both Malaysian & export markets in Food, Fertiliser, Feed & Detergent segments who can reduce manufacturing costs by switching to MPA’s locally produced phosphate

• products. This locks in long

term demand 10-year tax holiday and no import and/or export duties drives the competitive advantage further 36

37

Section 4

Financial Highlights

Group Financials

38

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenue (RM’000) 871,793 893,033 874,600 943,476 1,012,609 1,203,565 1,416,841 1,693,898 1,788,008 1,551,319 PBT (RM’000) (48,018) 150,570 98,526 118,796 178,715 226,906 294,894 341,452 388,596 302,139 PATNCI (RM’000) 388,165 95,770 40,989 65,781 120,023 135,735 175,072 221,335 248,149 169,177 S/holders’ funds (RM’000) 1,238,247 1,248,825 1,277,970 1,312,667 1,416,025 1,480,923 1,654,117 1,811,732 2,017,501 2,212,836 ROE (%) 37.15 / (2.27) 7.70 / 4.51 3.24 5.08 8.80 9.37 11.17 12.77 12.96 8.00 Borrowing (RM’000) 678,303 649,767 534,236 394,586 215,747 89,826 100,102 104,796 163,678 247,956 Gearings ratio (times) 0.55 0.52 0.42 0.30 0.15 0.06 0.06 0.06 0.08 0.11 EPS (sen) 117.82 29.07 12.44 19.97 36.43 41.39 52.56/ 17.46 21.42 23.31 15.75 Cash (company) (RM’000) 626,190 322,086 404,726 753,990 625,542 493,129 579,392 674,600 256,881 391,129

227 295 341 389 302 18.9% 20.8% 20.4% 21.8% 20.0% 17.0% 17.5% 18.0% 18.5% 19.0% 19.5% 20.0% 20.5% 21.0% 21.5% 22.0% 22.5% 50 100 150 200 250 300 350 400 450 2012 2013 2014 2015 2016 RM million PBT PBT Margin 1,481 1,654 1,812 2,018 2,213 524 614 830 325 457 90 100 105 164 248 0.06 0.06 0.06 0.08 0.11 0.02 0.04 0.06 0.08 0.1 0.12

• 500

1,000 1,500 2,000 2,500 2012 2013 2014 2015 2016 times RM million

Balance Sheet

S/holders’ funds Cash Borrowing Gearings

Group Key Financials 2012 – 2016

39

Revenue ’12 - ’16

*Adjusted for share split & bonus issue in June 2014

1,204 1,417 1,674 1,788 1,551

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2012 2013 2014 2015 2016 RM million

41.39 17.52 21.42 23.31 15.75 9.37% 11.17% 12.77% 12.96% 8.00%

• 1%

1% 3% 5% 7% 9% 11% 13% 10 20 30 40 50

2012 2013* 2014 2015 2016

EPS ROE

RM sen

Earning Per Share ’12 - ’16 PBT & PBT MARGINS ’12 - ’16 %

Revenue Breakdown 2012 – 2016

40

523 515 548 560 532 281 393 599 645 532 235 289 364 444 358 60 75 114 90 104 72 113 15 17 33 32 34 32 26

• 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2012 2013 2014 2015 2016

Revenue by segment (RM'm)

Others Samalaju Development Property Development Construction & Road Maintenance Construction Materials & Trading Cement 43% 36% 33% 31% 34% 23% 28% 36% 36% 34% 20% 20% 22% 25% 23% 5% 5% 7% 5% 7% 6% 8% 1% 1% 0% 3% 2% 2% 2% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 2013 2014 2015 2016

Revenue by segment (%)

PBT Breakdown 2012 – 2016

41

66 97 120 103 105 41 55 76 108 107 81 95 84 135 94 24 31 46 20 24 25 27 9 2 (11) (10) (11) (14) (15) 17 34 (12) (50)

• 50

100 150 200 250 300 350 400 2012 2013 2014 2015 2016

PBT by segment (RM'm)

Associates & JVs Others Samalaju Development Property Development Construction & Road Maintenance Construction Materials & Trading Cement 29% 33% 35% 27% 35% 18% 19% 22% 28% 35% 36% 32% 25% 35% 31% 11% 11% 13% 5% 8% 11% 9% 3% 1%

• 5%
• 3%
• 3%
• 4%
• 5%

5% 9%

• 4%
• 15%

5% 25% 45% 65% 85% 2012 2013 2014 2015 2016

PBT by segment (%)

Dividend Policy

Dividend policy since November 2014 is a minimum of 40% PATNCI, subject to minimum of 2 sen per share and other considerations.

42

Net Payout Ratio = Percentage of PATNCI paid out in dividends to shareholders

17 17 8.5 4.5 6.3 31.3 30.9 40.9 20 40.01

5 10 15 20 25 30 35 40 45 2 4 6 8 10 12 14 16 18

2012 2013 2014* 2015* 2016*# Net Payout Ratio (%) DPS (Cent)

Gross DPS and Net Payout Ratio (%)

Ordinary Dividend Net Payout Ratio (%)

RM 42.53m RM48.35m RM67.69m

* Based on share of RM0.50 each

RM54.13m RM 90.42m

# Subject to shareholders’ approval at the forthcoming AGM

43

Section 5

Sustainability Statement & Governance

10/04/2017

Sustainability Statement & Governance

Sustainability

Committed to prioritising responsible management and sustainable development to create long-term shared value for our 4 key stakeholders Year round staff volunteerism in multiple staff-led projects have built respect for CMS within the local community and made staff feel more engaged. Safety – strong focus on this in every way including groupwide KPI demerit system. Included in the globally recognised FTSE4Good Bursa Malaysia index effectively from December 2016

Governance

Never reprimanded by the regulators i.e. Bursa. Comply with the 2012 Bursa Corporate governance rules.

10/04/2017 44

45

Section 6

Group Strategies & Going Forward

Group Strategies And Going Forward

46 10/04/2017

Malaysian GDP growth for 2016 & 2017 projected to be 4.4% & 4.5% respectively Sarawak is more insulated from external downturns & turmoil due to the long term nature

• f its economic drivers in SCORE

Sarawak’s GDP grew by 5% in 2015 & is projected to grow by 4% in 2016 47

Group Strategies and Going Forward

Riding on the Sarawak Growth Story

 Maximise our core business divisions & our Strategic Investments to take advantage of Sarawak’s growth  Adopt an Edging strategy i.e. focus on business

• pportunities in our near field (or immediate

periphery) to provide significant profits growth  Investment criteria for projects: ▪ Hurdle rate / IRR: At least 18%; ▪ Scaleable / long term sustainability; ▪ Quality partners / JVs; ▪ Raw materials processing / manufacturing and/or infra / services focus.  An indispensable ally to State development regardless

• f politics – thru professionalism and neutrality

 Be known for our Corporate Governance, Sustainability & Management Competency  Acquire expertise / knowledge for regional expansion

• utside Sarawak later

 To maintain a moderate risk profile

Strategies Be the best proxy investment for Sarawak’s accelerating growth via:

 Energy intensive industry investments; and  consequential infrastructure and related services required across the State.

Conclusion

48

Cement & Construction Materials

• Largest

Bottom Line Contributor Construction & Road Maintenance

• Steady

Recurrent P&L Property Development

• Undervalu-

ed Land Banks

• Prime Lands

Strategic Investments Robust Financials

• Strong

Cash Balance

• Low

Gearing Management , Staff & Processes

• Proven
• Engaged
• Has

Bandwidth Samalaju

• Township
• Workers

Lodge

• Develop-

ment Strategic Investments

• OM
• MPA
• Others TBA

KKB

• Ongoing

Growth Potential

• O&G

K&N

• Bottom

Line Contrib- ution Potential

To Join the RM10 Billion Market Caps Club & Malaysia’s Top 30 Listed Companies

The Confident Company

Leveraging on Sarawak’s Growth Story

SACOFA

• Steady

Recurre- nt P&L

• Growth

potential within ICT space

THANK YOU. ANY QUESTIONS?