#1783F CAT SIME DARBY BERHAD Investor Presentation November 2017 2 3 GTS B PAND 6 9 00 8 PORSCHE Sime Darby Developing Sustainable Futures#2Disclaimer Sime Darby Developing Sustainable Futures This document is strictly confidential to the recipient. It is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. Upon request, you shall promptly return this document all other information made available in connection with this document, without retaining any copies. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. This document does not constitute and is not an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities of any company referred to in this document in any jurisdiction. The companies referred to herein have not registered and do not intend to register any securities under the US Securities Act of 1933, as amended (the "Securities Act"), and any securities may not be offered or sold in the United States absent registration under the Securities Act or an exemption from registration under the Securities Act. By attending the presentation you will be deemed to represent, warrant and agree that to the extent that you purchase any securities in any of the companies referred to in the presentation, you either (i) are a "qualified institutional buyer" within the meaning of Rule 144A under the Securities Act, or (ii) you will do so in an "offshore transaction" within the meaning of Regulation S under the Securities Act. By attending this presentation and accepting a copy of this document, you represent and warrant that (i) you have read and agreed to comply with the contents of this notice; (ii) you will maintain absolute confidentiality regarding the information contained in this document including information presented orally or otherwise in accordance with your confidentiality obligation; and (iii) you are lawfully able to receive this document and attend this presentation under the laws of other jurisdiction in which you are subjected and other applicable laws. This document is for the purposes of information only and is not intended to form the basis of any investment decision. This presentation may contain forward- looking statements by Sime Darby Berhad that reflect management's current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptions and made subject to a number of risks, uncertainties and contingencies and accordingly, actual results, performance or achievements may differ materially and significantly from those discussed in the forward-looking statements. Such statements are not and should not be construed as a representation, warranty or undertaking as to the future performance or achievements of Sime Darby Berhad and Sime Darby Berhad assumes no obligation or responsibility to update any such statements. No representation or warranty, express or implied, is given by or on behalf of Sime Darby Berhad or its related corporations (including without limitation, their respective shareholders, directors, officers, employees, agents, partners, associates and advisers) (collectively, the "Parties") as to the quality, accuracy, reliability, fairness or completeness of the information contained in this presentation or its contents or any oral or written communication in connection with the contents contained in this presentation (collectively, the "Information"), or that reasonable care has been taken in compiling or preparing the Information. None of the Parties shall be liable or responsible for any budget, forecast or forward-looking statements or other projections of any nature or any opinion which may have been expressed or otherwise contained or referred to in the Information. The Information is and shall remain the exclusive property of Sime Darby Berhad and nothing herein shall give, or shall be construed as giving, to any recipient(s) or party any right, title, ownership, interest, license or any other right whatsoever in or to the Information herein. The recipient(s) acknowledges and agrees that this presentation and the Information are confidential and shall be held in complete confidence by the recipient(s). All the images, pictures and photos including design drawings in relation to the company's property development projects contained in this document are artist impression only and are subject to variation, modifications and substitution as may be recommended by the company's consultants and/or relevant authorities. Strictly Private & Confidential 1#3Table of Contents Section Sime Darby Developing Sustainable Futures Page 1. Sime Darby Berhad 3 2. Motors Division 3. Industrial Division 4. Logistics Division 5. Others 6. Appendices Strictly Private & Confidential 2 13 21 21 32 35 38 88#4Sime Darby Berhad Company Overview Strictly Private & Confidential 3 Sime Darby Developing Sustainable Futures#5Sime Darby Berhad Who We Are at a Glance M #2 BMW dealer globally CAT #3 Caterpillar dealer globally 4 ports & 2 water treatment plants in China RAMSAY SIME DARBY HEALTH CARE 6 hospitals in Malaysia & Indonesia FY17 Financial Snapshot (3) $ Revenue RM31,087 m $EBITDA RM1,319 m Total Assets 11 RM25,211 m Notes: Maldives $ PBIT RM784 m וה China Macau Sime Darby Developing Sustainable Futures Motors Industrial Logistics South Korea Hong Kong Taiwan Thailand Vietnam Malaysia Singapore Indonesia Brunei Papua New Guinea Healthcare Solomon Islands PATAMI RM615 m Shareholders' Christmas Island New Caledonia Australia Funds RM14,995 m 18 Countries & Territories(1) 20,233 Employees (2) New Zealand (1) Geographical footprint defined as locations in which Sime Darby Berhad has assets or employees, and includes JV's operations (i.e. Ramsay Sime Darby Health Care operates in Indonesia); (2) As at 30 June 2017. Excludes employees of Ramsay Sime Darby Healthcare; (3) Continuing operations only, refer to 2017 Annual Report for further details. Strictly Private & Confidential 4#6Sime Darby Berhad Business overview Motors 980K CA M.YB 6466 Industrial Logistics Sime Darby Developing Sustainable Futures Healthcare " Retail, distribution and assembly businesses Presence in 10 countries & territories across APAC, over 40 years experience Represents 31 brands, ranging from luxury brands (e.g. BMW, Porsche, Rolls Royce) to mass market brands (e.g. Ford, Hyundai), as well as trucking names (e.g. Hino and Mack) BMW dealer since 1972 and is the second largest BMW dealer group globally Comprehensive range of equipment and services i.e. new and used machine and engine sales, rental and full range of product support services Network of more than 109 branches throughout APAC " Balanced sectoral exposure in mining, construction, forestry, marine and energy Also provides comprehensive range " " " of industrial solutions via Allied Brands and Energy Solutions CAT dealer since 1929 and is the third largest CAT dealer globally (FY17; RM mm) 20,602 PBIT Margin 3.1% 633 (FY17; RM mm) 10,127 (4) PBIT Margin 2.5%(4) 253 Ports & Logistics and Water Management in Shandong, Eastern China ◉ Entered Shandong in 2005 and is currently the largest multi-purpose port in Yellow Delta River, Shandong Weifang Port - dry bulk, break bulk, liquid bulk, general cargo & container Jining Ports (3 ports) - Stevedoring & storage services for coal & coal related products Water treatment plants (2 plants) - supplies clean water to residential, commercial and industrial users in the BEDA area(1) (FY17; RM mm) 303 PBIT Margin 21.1% 64 ◉ Revenue 9,355 PBIT (3) ROAIC 10.9% Revenue 11,391 PBIT Revenue PBIT 8,089 ROAIC (3) 3.2% (1) ROAIC (3) 2.9% " 5,826 2,694 2,294 (2) Assets Invested Capital Strictly Private & Confidential Assets Invested (2) Capital 5 " " (2) Assets Invested Capital 50:50 JV with Ramsay Healthcare for the management of hospitals and provision of healthcare services (FY17; RM mm) EGO EASTERN & ORIENTAL BERHAD 682 682 (2) Assets Invested Capital Others Sime Darby LOCKTON TESCO MALAYSIA VISION VALLEY 12% stake in Eastern & Oriental Owns c.8,800 acres of land in the Malaysia Vision Valley region and 4 corporate towers in Ara Damansara 30% stake in Tesco Malaysia Provision of shared services to all Sime Darby pure plays Insurance broking services in Malaysia, Singapore and Hong Kong Holder of SIME DARBY trademarks Notes: (1) BEDA - Binhai Economic-Technological Development Area (2) Invested capital is total assets (excluding tax assets and intercompany balances) less operating liabilities (i.e. all liabilities except borrowings, intercompany balances, leases and tax liabilities (3) ROAIC is PBIT divided by average invested capital (4) Excludes impairments and provisions of RM257mn related to Bucyrus#7Sime Darby Berhad Group FY2017 Financials dent (FYE June; RM mm) Total Revenue By Segment Logistics, 1% Others, 0% By Geography Others, 0% Australasia(2), 29% Malaysia, 15% Industrial, 33% Motors, 66% Revenue: RM31,087 mm China(2), 38% Adjusted EBITDA (5) & Adjusted PBIT(6) (By Segment) Adjusted EBITDA Adjusted PBIT Others, 3% Others, 8% Logistics, 7% Motors, 51% Logistics, 6% Motors 62% Industrial 39% Adj. EBITDA: RM1,613 mm Notes: Industrial, 24% Adj. PBIT: RM1,078 mm Capital Structure(1) Debt/Equity: 20.8% 15,370 375 14,995 SEA (excl. M'sia), 18% Equity 3,194 2,072 1,948 1.246 Debt Cash ■ Shareholders' Funds ■Long Term Borrowings ■ Bank Balances, Deposits & Cash Non-controlling Interests Short Term Borrowings Total Borrowings (By maturity) Total borrowings: RM 3,191 mm(4) 1,944 302 188 Sime Darby Developing Sustainable Futures 757 < 1 year 1-2 years 2-5 years > 5 years (1) Excludes Net Assets of discontinuing operations; (2) China consists of China, Hong Kong, Macau & Taiwan; (3) Australasia consists of Australia, New Caledonia, New Zealand, Papua New Guinea & Solomon Islands; (4) Excludes interest of RM 3 mm; (5) Based on segment results. RM1,319m FY2017 EBITDA adjusted for Bucyrus impairment and provision (RM257mn) and BMW Vietnam impairment and provisions (RM37mn); (6) Based on segment results. Adjustments same as for EBITDA. Strictly Private & Confidential 6#8Segmental Financialsely Core businesses of Motors and Industrial provide the highest ROAIC Historical ROAIC (FY17 ROAIC vs 10-year and 5-year average) Sime Darby Developing Sustainable Futures I L 16% 8% Industrial 3% (1) By Segment 13% 12% 11% Motors Invested Capital as at 30 June 2017 8,089 Industrial 5,826 ■ Core FY17 10-year average 5-year average 6% 5% 4% 5% 3% 3% Logistics Healthcare By Segment Healthcare, 4% Others, 2% Logistics, 13% 2,294 682 415 Motors 34% Motors Logistics Healthcare Others Note: Total Invested Capital: RM17,306 mm (1) Excludes impairments and provisions of RM257mn related to Bucyrus Strictly Private & Confidential 7 Industrial, 47% businesses: Notwithstanding Industrial's performance in FY2017, the Motors and Industrial core businesses provide the highest ROAIC for Sime Darby Berhad Logistics' and Healthcare's ROAIC are significantly lower#9Industrial Motors Segmental Financials Motors: Stable performance; Industrial: Cycle has bottomed out Sime Darby Developing Sustainable Futures Revenue (RM bn) PBIT (RM mn) ROAIC (%) FY17: RM20.6bn FY17: RM633mn FY17: 11% 10-year 15.0 average 5-year average 10-year high 10-year average 503 10-year average 13% 18.7 5-year average 591 5-year average 12% 10-year 711 20.6 high 10-year high FY17: RM10.1bn 10-year average 10.6 FY17: RM253mn(1) 10-year average 5-year average 5-year 11.5 703 average 10-year high 14.4 10-year high Note: (1) Excludes impairments and provisions of RM257mn related to Bucyrus Strictly Private & Confidential FY17: 3% (1) 843 10-year average 16% 8 5-year average 8% 10-year 1,396 high 21% Commentaries Motors achieved its highest ever revenue in a decade on the back of organic and inorganic expansion Profits have recovered despite adverse market conditions in key markets like Malaysia (currency depreciation & GST), Singapore (COE limits) and China (cooling economy) 25% ◉ Industrial has been hit by cooling demand for coking coal and low crude oil prices However, FY17 revenue increased for the first time after 3 consecutive years of decline which gives hope that the cycle may have bottomed out#10The New Sime Darby Berhad What's different? FOCUS AA 99994711 A CDCID 99994711 A 100 FOCUSED Focus on core trading model Footprint across Asia Pacific growth region . • LEAN HQ: Small GHO(1), reduced staff from 450 to c.70 Operations: Continued operational right- sizing Note: (1) GHO: Group Head Office Strictly Private & Confidential 9 Sime Darby Developing Sustainable Futures AGILE Single-tier board structure • Greater decentralisation to business units#11The New Sime Darby Berhad Value creation: Delivering returns and growth To be the leading Motors & Industrial multi-national in Asia Pacific Sime Darby Developing Sustainable Futures OPERATIONAL ACCELERATING GROWTH EXCELLENCE • Optimise cost · New markets and structure Strengthen resilience to down cycles . • new brands Complementary adjacencies Strategic M&A/ Joint Ventures RATIONALISING NON-CORE BUSINESSES Re-deploy capital towards our core businesses and key projects Strictly Private & Confidential 10 10 Sime Darby Berhad#12The New Sime Darby Berhad Well-positioned to tap on Asia Pacific's growth Proven Trading and Services Business Model Resilient ROAIC for the past 10 years(1) despite challenging business conditions Balanced Portfolio Exposure Mass Market Segment Luxury Segment Mining Construction Forestry Marine Energy Assembly (Motors only) New Equipment/ Vehicle Sales After-sales/ Parts & Services # Sime Darby 臨 50 Well-positioned for Commodity Upcycle Sime Darby Developing Sustainable Futures Long-standing Partnership with Established Brands SINCE CAT 1929 B M SINCE 1972 Tapping on Asia's Growing Affluence Average Annual GDP Growth of Asian countries(2) Vietnam 6.5 China 6.4 Indonesia 5.3 Asia Pacific 4.8 Malaysia 4.6 Thailand 3.5 World 3.3 New Zealand 2.8 Australia 2.7 Hong Kong 2.5 Singapore 2.4 Taiwan 2.2 Rental & Used Industrial stands to benefit from increased demand for coal 22% Coal % of world energy consumption by 2040(3) Geographies with current presence Regional growth rates (1) FY2008-FY2017; (2) Bloomberg's Forecasted Average Annual GDP Growth YoY% (2017-2019) - as at 9 June 2017; (3) Source: Wood Mackenzie Strictly Private & Confidential 11#13Qualified & Experienced Management Team Sime Darby Developing Sustainable Futures Jeffri Salim Davidson Group Chief Executive Officer ■ Appointed Deputy Group CFO in 2016 and previously Senior Vice President of Industrial Division (China, Singapore & Power Systems) Held various senior leadership positions in Sime Darby Berhad including the Finance Director of Tractors Malaysia Sdn Bhd and Managing Director of China Engineers Limited Holds a BSc in Geology from University College London (United Kingdom), and a Chartered Accountant (ICAEW) by profession Mustamir Mohamad Group Chief Financial Officer ◉ Appointed as Head of Group Finance for Sime Darby Group in 2014 Previously served in various senior positions in Sime Darby, including Head of Strategy & Business Development in Sime Darby Plantation; Head of EVP Office, Sime Darby Plantation; and Senior Manager of Value Management in Group Strategy, Sime Darby Berhad He holds a degree in Accounting and Finance from the London School of Economics and Political Science, is a Fellow of ICAEW and a member of the Malaysian Institute of Accountants (MIA) Datuk Thomas Leong Yew Hong Group Chief Strategy Officer ☐ ☐ Appointed as Head of Strategy and Corporate Finance for Sime Darby Group in 2016 Previously Executive Vice President of Maybank's Group Strategy & Business Development and has held senior positions in Accenture and Deloitte Consulting, based in Australia, Hong Kong and Malaysia Holds a BSc in Software Engineering from Australian National University, and an MBA (International Corporate Finance) from University of Sydney Dato' Lawrence Lee Cheow Hock Managing Director, Sime Darby Motors " Appointed as Managing Director of Motors Division since 2007 27 years of experience in the automotive industry in the Asia Pacific region, and leads Sime Darby Motors, a major player in the Asia Pacific automotive industry with presence in 10 countries He is a Fellow of the ICAEW, and a member of the Malaysian Institute of Accountants Scott William Cameron Managing Director, Sime Darby Industrial " Appointed as Managing Director of Industrial Division in 2007 25 years of experience in the Caterpillar family. Began his career with Price Waterhouse in Brisbane, Sydney and New York before joining Hastings Deering (Australia) Limited as the Finance Director in 1992. Currently the Dealer Principal of the Hastings Deering Group Holds a degree in Commerce from University of Queensland. He is a Fellow of the Institute of Chartered Accountants in Australia and a Fellow of the Australian Institute of Company Directors Timothy Lee Chi Tim Managing Director, Sime Darby Logistics " Appointed as Managing Director of Logistic Division in 2011 Over 20 years of operational experience in the ports and container terminal management industry in Hong Kong Previously the Operations Manager of the Hong Kong Business Unit for Modern Terminals Limited (the second largest port operator in Hong Kong) prior to joining Sime Darby Strictly Private & Confidential 12#14Motors Division Strictly Private & Confidential 13 Sime Darby Developing Sustainable Futures#151979 1982 1981 1972 BMW (HK & Macau) Acquired the sole importer and distributor of BMW cars & motorcycles in HK & Macau History & Key Milestones Solid Track Record Across 10 Markets in the Asia Pacific Region JV with Ford to distribute Ford vehicles in Malaysia Ford Entered hire & drive business through the Hertz franchise for Malaysia and Brunei Hertz BMW (Singapore) Obtained dealership rights of BMW cars & motorcycles in Singapore Strictly Private & Confidential 1997 1987 BMW (Malaysia) Appointed authorised sole importer & distributor of BMW in Malaysia BMW (Singapore) Won the BMW AG award for achieving the highest BMW sales worldwide 2001 1998 2004 New Zealand Acquired 80% of Continental Car Services Ltd i.e. multi-franchise dealership based in Auckland Trucks (New Zealand) Investment in the truck business in New Zealand (Mack, Renault & Hino) Mack Peugeot Motors Appointed ☑ PEUGEOT distributor of Peugeot Motors in Australia & New Zealand 14 2005 TRUCKS RENAULT HINO 2012 2010 Malaysia & China Appointed distributor & retailer of Porsche in Malaysia Added the Lamborghini marque to its retail business in China Rolls Royce Macau, Porsche Sydney " ■ Rolls Royce Macau dealership commenced operations Acquired Porsche Sydney ROLLS R ROYCE Hyundai Malaysia Acquired Hyundai business and Inokom assembly facility in Malaysia HYUNDAI LAND -ROVER JAGUAR 2014 2017 2013 Sime Darby Developing Sustainable Futures Vietnam, Taiwan, Malaysia, Australia " ◉ " Acquired official BMW & Mini importer & distributor for Vietnam Appointed sole distributor for Kia in Taiwan Commenced assembly of Mazda vehicles in Inokom for export to Thailand Acquired BMW Brisbane, Australia Fiat & Alfa Romeo (Australia) Addition of Fiat & Alfa Romeo dealerships in Australia FIAT Jaguar & Land Rover (Malaysia), Ferrari (Brisbane) ◉ ◉ Obtained sole distributorship of Jaguar & Land Rover in Malaysia Added Ferrari to Brisbane, Australia Source: Company website#16Sime Darby Motors We represent strong luxury and mass market brands across APAC Sime Darby Developing Sustainable Futures Malaysia Distributor & Dealer NV Singapore Thailand Australia New Zealand Hong Kong Macau China Taiwan Distributor Dealer Dealer & Dealer Distributor & Dealer Distributor & Dealer Distributor & Dealer Dealer Mack MINI Ford Ford MINI MINI MINI MINI MINO mazda PEUGEOT JAGUAR Ford LAND ROVER HYUNDAI Assembly (Inokom) BM MINI HYUNDAI Rental Hertz Rental Hertz Strictly Private & Confidential Thrifty S NISSAN VOLVO VOLVO TRUCKS ROLLS ROLLS R R ROYCE PEUGEOT Distributor & Dealer KIA ROYCE PEUGEOT McLaren ROLLS R ROYCE Assembly KIA RENAULT SUZUKI SUZUKI Dealer MITSUBISHI MITSUBISHI M FIAT Rental COREFLEET FUSO FUSO JAC JAC MOTORG MOTORS NISSAN Audi 15 LAMBORGHINI Source: Corporate Presentation, Company website#17Sime Darby Motors Focused on Expansion in Asia Pacific HK & Macau ROLLS R MINI PEUGEOT ROYCE SUZUKI No. 2 BMW Dealer Globally ■ ■ Expand aftersales and used car business Invest in new dealerships and acquire dealership groups Expand assembly capabilities China B M MINI ROLLS ANBORGHINI R McLaren ROYCE Malaysia B CLAND- -ROVER M W MINI Ford PORSCH HYUNDAI JAGUAR Strictly Private & Confidential Australia M MINI MITSUBISHI JAC MOTORS FUSO Singapore Ford MINI HYUNDAI M FIAT New Zealand PORSCHE PEUGEOT Mack NISSAN NISSAN Audi RENAULT VOLVO TRUCKS Herrar 16 HINO Taiwan Sime Darby Developing Sustainable Futures KIA KIA Thailand Ford mazda Current Presence Dealership/distributorship ☐ ☐ Assembly#18Sime Darby Motors The Growth Strategy Moving Forward Objectives Levers Strictly Private & Confidential III IV Sime Darby Developing Sustainable Futures ** Strengthening the core || P Expand along value chain New marques & markets Mergers & acquisitions Capture value- added services beyond new car sales ☐ Expand dealerships into new markets or represent new marques Accelerate growth and achieve economies of scale Organic market growth Expand aftersales and grow used car business ■ Grow car assembly business through partnerships with manufacturers Expand commercial vehicle franchises Represent new brands in the Asia Pacific ■ Explore acquisition of dealership groups 17 Sime Darby Berhad#19Sime Darby Motors Key Financial Highlights Revenue (RM mm) Record sales of the trucking business across all brands in NZ, higher sales volume in China and increased COE quota & timely launches of new BMW models in Singapore PBIT (RM mm) Impacted by GST in i from Malaysia and government policy in China 7,926 7,510 20,602 16,597 17,266 17,745 18,646 19,155 14,818 10,098 164 184 386 702 711 633 635 Sime Darby Developing Sustainable Futures Stronger contributions Malaysia and China operations 633 503 474 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Invested Capital (¹) (RM mm) Reduction in working capital - inventories, receivables and cash balances Increase in working capital and acquisition of BMW Brisbane and Vietnam 6,431 6,086 5,755 5,826 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 ROAIC(2) (%) 21.2% 20.2% 18.3% 4,033 3,738 3,226 2,602 2,720 2,743 III FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Notes: 6.6% 6.9% 14.1% 12.6% 10.9% 8.3% 7.6% FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 (1) Invested capital is calculated as total assets (excluding tax assets and intercompany balances) less operating liabilities (i.e. all liabilities except borrowings, intercompany balances, leases and tax liabilities (2) ROAIC is calculated as PBIT divided by average invested capital Strictly Private & Confidential 18#20SEA (excl. Malaysia) Note: Sime Darby Motors Units Sold, Revenue & PBIT by Region (1/2) Malaysia FY17 Sales Contribution & Units Sold Malaysia Marques Units Sold Sime Darby Developing Sustainable Futures Reported Revenue & PBIT (RM mm) we MINI 7.3% 333 4.7% 2.6% 6.2% Malaysia, 31,230 204 223 17% Ford LAND- ROVER 26,607 87 4,563 4,323 18,571 17,663 3,385 3,573 JAGUAR 2014 2015 2016 2017 2014 2015 2016 2017 HYUNDAI Units sold: 17,663 Revenue --PBIT PBIT Margin SEA (Excl. M'sia) M W MINI SEA (excl. M'sia), 24% Ford PEUGEOT Units sold: 18,693 mazda (1) includes a goodwill impairment of RM19 mm and provision on inventories of RM18 mm in Vietnam Source: Audited accounts, Corporate presentation Strictly Private & Confidential 1.0% 0.8% 4.3% 1.5% 18,693 192 16,396 75 (1) 34 28 12,623 12,696 5,026 4,516 3,334 3,353 2014 2015 2016 2017 2014 19 2015 Revenue -0-PBIT 2016 2017 PBIT Margin#21Sime Darby Motors Units Sold, Revenue & PBIT by Region (2/2) East Asia Australia / New Zealand FY17 Sales Contribution & Units Sold China / HK / Macau M Taiwan China/HK/Macau, 41% Marques MINI Units Sold ROLLS LAMBORGHINI R 33,915 34,293 ROYCE 31,596 31,827 McLaren KIA PEUGEOT MITSUBISHI Sime Darby Developing Sustainable Futures Reported Revenue & PBIT (RM mm) 3.5% 1.6% 1.7% 2.7% 250 231 124 134 8,549 7,984 7,758 7,227 2014 2015 2016 2017 2014 2015 2016 2017 Units sold: 34,293 JAC SUZUKI FUSO MOTORS Revenue ―0-PBIT PBIT Margin Australia / New Zealand M MINI 0000 Australia/ Audi NZ, 17% S Mack Units sold: 13,325 HINO Strictly Private & Confidential NISSAN RENAULT TRUCKS NISSAN VOLVO 18,060 16,663 16,266 0.7% 3.7% 118 2.8% 3.0% 104 90 13,325 18 3,454 3,212 3,270 2,622 VOLVO TRUCKS 2014 2015 2016 2017 2014 2015 2016 2017 FIAT Revenue -0-PBIT PBIT Margin 20 20 Source: Audited accounts, Corporate presentation#22Industrial Division Strictly Private & Confidential 21 Sime Darby Developing Sustainable Futures#231929 1964 1910 Sime Darby & Co (Kumpulan Sime Darby Bhd) established in Malacca, Malaysia History & Key Milestones Long-standing Partnership with Caterpillar Since 1929 Sime Darby Developing Sustainable Futures 1957 Tractors dealerships extended to Peninsular Malaysia, Singapore, Brunei and Christmas Island Tractors Singapore was established in Singapore. Tractors Singapore CAT CAT (Malaysia) Sime Darby, through Sarawak Trading Company was appointed as a Caterpillar dealer for Sarawak. Tractors Malaysia CAT Strictly Private & Confidential 1984 Tractors Malaysia began its manufacturing and assembly operations 242 1972 China Engineers Ltd became a subsidiary of the group 信局 China Engineers CAT 1992 Hastings Deering Acquired Hastings Deering Group, Caterpillar dealer in Australia (Queensland and Northern Territory), Papua New Guinea and Solomon Islands Hastings Deering CAT 2000 Caltrac Hastings Deering acquired Caltrac, the Caterpillar dealer in New Caledonia Caltrac CAT 2017 2011 USD8.8 bn acquisition of Bucyrus by Caterpillar. Hastings Deering became the first Caterpillar dealer in the world to sell, service and support the new range of Caterpillar underground and surface mining equipment Partnership with ENGIE Partnership agreement with ENGIE to (i) develop solar energy, and (ii) integrated facilities management services in Malaysia. ENGIE#24Sime Darby Industrial Strong brands and comprehensive market reach throughout APAC Sime Darby Industrial Sime Darby Developing Sustainable Futures CAT Dealer Operations Tractors Malaysia CAT Malaysia, Brunei Tractors Singapore CAT Singapore, Maldives, Christmas Island 信局 China Engineers CAT Hong Kong, Macau Sime Kubota FUSHENG TERBERG Allied Brands Group Malaysia (via JV with Kubota Corp & Marubeni Corp) Asia Pacific region TRACTORS MALAYSIA (JV with Terberg Benschop) Malaysia, ELCO POWER OLYMPIAN GENERATOR SETS Philmac The connection you can trust. POWER TEAM Dwyer Hong Kong & Macau, China Hong Kong & Macau Energy Solutions Group ABB Atlas Copco IDEC Tist Asadas pas telecom PULSAFEEDER Motion Smith Schneider Electric IDIS telelift VIKING PUMP A Unit of IDEX Corporation Sime Darby CAT Southeast China (Province of Guangdong, Guangxi, Hainan, Fujian, Hunan, Jiangxi) and Xinjiang Hastings Deering CAT Australia (Queensland & Northern Territory), PNG & SI Caltrac CAT New Caledonia NEW HOLLAND AGRICULTURE Donaldson. FILTRATION SOLUTIONS Christmas Island (Indian Ocean), Singapore CMG OMEGA Parker Racor ALEXANDER DENNIS neary Kubota TECHNOLOGIES SULZER 7 TMB Power TMB FLEXENEHBY Pil Pipeline Solutions C SEM POWER PACK Malaysia Perkins® Skofb SULLAIR JLG China DataHowk AUSTCHROME Rail in Focus Engineering NovaPower UPG Australia PAKKA JACKS LIFTING THE GAME IML Mecomb Group: Singapore, Malaysia and Thailand HEXAGON A-SUBS LINCOLN EMERSON. Kawasaki Powering your potential safe Itron MINE ENERGY SOLUTIONS HAYNES Australia, China & Malaysia Engineering & Technical Services: Malaysia Malaysia, Hong Kong, Macau, China, South SITECH Korea (IR Ingersoll Rand Singapore Atlas Copco Allison Vietnam RENAULT TRUCKS TOXE DIESEL Australia, Malaysia & Singapore Strictly Private & Confidential 23 Parker Racor Christmas Island (Indian Ocean), Singapore, Maldives#25Regional Presence Across 17 Countries and Territories, Supported by a Network of Branches Sime Darby Developing Sustainable Futures CHINA/HK Xinjiang ■ Hunan South Korea " Jiangxi " Fujian " Guangdong " Guangxi ■ Hainan MALAYSIA MALDIVES SINGAPORE CHRISTMAS ISLAND AUSTRALIA Macau/HK VIETNAM ■ ■ Principal activities Sale, rental and used equipment of Caterpillar equipment and engine Sale of parts, service maintenance, equipment monitoring system and technology equipment's Regional presence: 14 countries & territories(1) ■ No. of branches: 109(2) ■ Orderbook: RM2.4 bn (as at 30 September 2017) ■ Total no. of employees: 7,875 (as at 30 June 2017) BRUNEI PAPUA NEW GUINEA SOLOMON ISLANDS Regional industry presence No. of branches Construc- tion Forestry Mining Quarry (1) Power Systems Northern Territory NEW CALEDONIA China & 63 HK, Macau Queensland South East Asia 23 (4 depot & 7 CAT rental stores) LEGEND China HK Macau / South Korea Malaysia South East Asia Australia and Pacific Islands Australasia 23 Note: (1) Regional presence defined as locations in which Sime Darby Industrial has assets or employees; (2) Refers to Caterpillar branches only Strictly Private & Confidential 24#26Sime Darby Industrial Key Industry Highlights Metallurgical coal prices have stabilised around USD200/tonne vs. average FOB cost for Queensland producers of USD100/tonne. The return to profitability has sparked renewed capital investment by BHP Billiton and Adani in Australia. Coal will continue to remain relevant as a source of power in the next two decades. 400 350 300 250 200 150 100 50 US/t FOB QLD 0 Queensland Hard Coking Coal FOB (USD/tonne) Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 world net electricity generation by source trillion kilowatthours 40 30 Utilisation is projected to remain 20 constant at 10 trillion kilowatthours, ~30% of fuel requirements. Source: EIA International Energy Outlook 2016 Strictly Private & Confidential 10 Sime Darby Developing Sustainable Futures Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Nuclear Other renewables Hydropower Natural gas 0 Liquids 2012 2020 2025 2030 2035 2040 25 Coal#27Sime Darby Industrial The Growth Strategy Moving Forward Sime Darby Developing Sustainable Futures Objectives * Strengthening the core || ◉ * Operational excellence ☐ III P Organic growth Capture value-added services beyond new equipment sales IV ☑ Grow new businesses Develop new business pillars that are complementary or adjacent to the core Expand dealerships into new markets or represent new marques Levers " World Class performance Deliver additional 3% sales margin " Recovery after four successive years of market contraction Grow market leadership for sales, spare parts, services and solutions Microsoft - Leverage technology to recut business processes and reduce working capital by 2 months 6 Sigma - Reduce transaction cost e.g. credit control, logistics & freight Procurement renegotiate terms Expand rental and used equipment capability in Asia Deploy customer technology as a competitive differentiator " Negotiate with Principals to acquire additional territories - CAT, Kubota, New Holland, Terberg Explore new range of allied products and energy solutions services Strictly Private & Confidential 26#28Sime Darby Industrial Key Financial Highlights Revenue (RM mm) 14,429 13,575 12,073 10,637 10,962 9,946 10,127 8,645 8,210 7,629 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Invested Capital (¹) (RM mm) PBIT (RM mm) 898 793 725 1,396 1,331 1,106 1,039 Sime Darby Developing Sustainable Futures 552 341 253 (3) FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 ROAIC(²) (%) Acquisition of Bucyrus business for c. RM1.2bn 7,908 7,903 7,788 7,670 7,828 8,089 25.3% 24.3% 23.9% 21.4% 20.2% 5,156 4,251 3,601 3,255 16.8% 13.2% FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Note: 7.1% 4.3% 3.2% (3) FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 (1) Invested capital is calculated as total assets (excluding tax assets and intercompany balances) less operating liabilities (i.e. all liabilities except borrowings, intercompany balances, leases and tax liabilities (2) ROAIC is calculated as PBIT divided by invested capital (3) Excludes impairments and provisions of RM257mn related to Bucyrus Strictly Private & Confidential 27#29Sime Darby Industrial Product support revenue increases significantly during industry down cycle Sime Darby Developing Sustainable Futures FY17 Revenue by segment vs FY12 FY12 Total Revenue: RM13,575 mm FY17 Total Revenue: RM10,127 mm Allied Business, 5% Allied Business, 5% Energy Solutions, 3% Power Systems, 6% Power Systems, 8% Service, 13% Parts 21% Service, 14% Equipment, 50% Parts 34% Energy Solutions, 4% Equipment, 37% FY12: During the mining boom, sales of new equipment was the main revenue driver at 52%, with product support contributing 35% (22% parts and 13% service). FY17: Currently, at the bottom of the cycle, revenue from product support has increased significantly to 47% (34% parts and 14% service), while new equipment sales is lower at 37%. Strictly Private & Confidential 28#30Malaysia Southeast Asia (excluding Malaysia) Sime Darby Industrial Revenue & PBIT by Region (1/2) FY17 Sales Contribution & YoY Orderbook Products / Services Revenue (RM mm) FY17 Sales Contribution CAT New Equipment & Engines Malaysia, 11% 1,423 1,230 Excavators Dozers Orderbook 190 +40% Forest machine Lift trucks Rental & Used Equipment 266 Parts & Services Allied Solutions Energy Solutions 30 Sep 2016 30 Sep 2017 FY17 Sales Contribution SEA (excl. M'sia) 7% CAT New Equipment & Engines Orderbook Excavators Wheel loaders Marine engines Rental & Used Equipment 299 322 +8% Parts & Services Note: 30 Sep 2016 30 Sep 2017 (1) Orderbook as at Aug 2017 Strictly Private & Confidential Sime Darby Developing Sustainable Futures PBIT (RM mm) 11.6% 8.5% 5.2% 4.4% 150 1,099 993 104 52 48 2014 2015 2016 2017 2014 2015 2016 2017 PBIT Margin 22.9% 12.8% 11.2% 4.6% 237 2014 2015 2016 2017 2014 2017 PBIT Margin וווי ויי* 29 29#31China, HK & Macau Australia & Pacific Islands Sime Darby Industrial Revenue & PBIT by Region (2/2) FY17 Sales Contribution & YoY Orderbook Products / Services FY17 Sales Contribution CAT New Equipment & Engines China / HK/ Macau, 27% Revenue (RM mm) Sime Darby Developing Sustainable Futures PBIT (RM mm) 5.5% 4.7% 3.9% 3.5% 142 2,691 2,610 2,605 Excavators Dozers 112 2,401 102 93 Wheel loaders Marine engines Orderbook Rental & Used Equipment 418 -15% 355 Parts & Services 30 Sep 2016 30 Sep 2017 FY17 Sales Contribution Australia & Pacific Islands, 55% CAT New Equipment & Engines Orderbook 329 +279% Large mining trucks Underground mining loaders 2014 2015 2016 2017 2014 2015 2016 PBIT Margin 2017 7.4% 3.1% 1.4% 4.5% 6,894 510 6,126 5,600 5,328 192 Hydraulic Dozers mining shovels 1,247 Rental & Used Equipment Parts & Services 2014 2015 2016 2017 2014 2015 Note: 30 Sep 2016 30 Sep 2017 (1) Orderbook as at Aug 2017 (2) Excludes impairments and provisions of RM257mn related to Bucyrus Strictly Private & Confidential 30 30 73 253 2016 2017 (2) PBIT Margin#32Sime Darby Industrial by u Safety & Health Performance Lost Time Injury Frequency Rate Incidents per million man-hours worked 3.3 FY2013 2.7 2.5 FY2014 FY2015 3.4 FY2016 Sime Darby Developing Sustainable Futures 52% reduction in incidents 1.6 FY2017 ■ Industrial Division is focused on embedding the belief that all incidents are preventable. ■ The combination of the values in the "Visible Felt Leadership Programme", "Life Saving Commitments" awareness program and Noggin OCA incident management system has lead to a 52% reduction in incidents per million man-hours worked from 3.4 to 1.6 (FY2017). Strictly Private & Confidential 31#33Logistics Division Strictly Private & Confidential 32 Sime Darby Developing Sustainable Futures#34Business Overview Targeted Total Capacity of ~100 million MT by 2020. Sime Darby Developing Sustainable Futures Sime Darby Logistics is the primary operator of Weifang Port, of which operations cover dry bulk, break bulk, liquid bulk, general cargo and container handling services. The Division also operates three river ports located in Jining, Shandong Province. The Jining Ports provide basic port related services such as stevedoring and storage services primarily for coal and coal-related products The two water treatment plants operated by the Division are located in the Binhai Economic-Technological Development Area ("BEDA") adjacent to Weifang Port and supplies clean water to residential, commercial and industrial users in BEDA Location of Assets Llaocheng Binzhou Dongying Dezhou Jinan Welfang Qingdao Zibo Lalwu Talan Jining Heze Strictly Private & Confidential Linyl Zaozhuang Rizhao Yantal Welhal Ports & Logistics Water Management People's Republic of China 33 33 Annual Throughput & Capacity 1 Weifang Port (Sea Port) FY2017 19.9 mm MT - Throughput bulk Throughput container Capacity bulk - Capacity- - container Target Capacity - bulk (FY2020) 2 Jining Ports (River Port) 219.8K TEU 32.6 mm MT 463.2K TEU 40.6mm MT FY2017 Throughput 11.2 mm MT Capacity 16.4 mm MT Target Capacity (FY2020) 18.7 mm MT Shandong 3 Weifang Water Throughput Capacity FY2017 40.6 mm m³ 51.1 mm m³#35Key Financial and Operational Highlights Revenue (RM mm) PBIT (RM mm) Sime Darby Developing Sustainable Futures Lower Jining Port tariffs as a result of intense competition & tighter environmental controls by Jining authority 303 103 294 294 77 28 53 60 70 53 64 12 250 44 37 23 75 250 241 243 64 65 213 41 2014 2015 2016 2017 Ports Water Invested Capital(1) (RM mm) Notes: 2,294 2,101 1,898 1,561 2014 2015 2016 2017 2014 2015 ROAIC(2) (%) Ports 2016 5.2% 4.7% 4.4% Water 2017 2.9% 2014 2015 2016 2017 (1) Invested capital is calculated as total assets (excluding tax assets and intercompany balances) less operating liabilities (i.e. all liabilities except borrowings, intercompany balances, leases and tax liabilities (2) ROAIC is calculated as PBIT divided by average invested capital Strictly Private & Confidential 34#36Others Strictly Private & Confidential 35 Sime Darby Developing Sustainable Futures#37Ramsay Sime Darby Health Care (RSDHC) The Strategy Moving Forward Sime Darby + 50% RAMSAY HEALTH CARE 50% RAMSAY SIME DARBY HEALTH CARE Asia-focused Portfolio China Sime Darby Developing Sustainable Futures Active Beds: 1,152 Bed Capacity: 1,541 Assets in Malaysia Assets in Indonesia Myanmar HK Macau Existing presence Target markets Vietnam Thailand Philippines Malaysia Singapore Indonesia Strictly Private & Confidential Subang Jaya Ara Damansara Medical Centre Medical Centre RS Premier Jatinegara RS Premier Bintaro ParkCity Medical Centre MEDIPLEX Wellness Centre RSDH College RS Premier Surabaya Positive Prospects Demographic Trends Organic Growth Fast growing sector in Asian emerging markets due to population growth & increasing life expectancy Rising affluence in Asia Driving cost reduction and attaining operational excellence will also drive profit growth Availability of Opportunities Strategic partnerships in Asia 36#38Malaysia Vision Valley Land ~8,800 acres of land - Option to sell to SD Property Highlights of MVV MVV is a large scale project announced by the Malaysian Prime Minister during his 2016 Budget speech, and is a component of the Government's 11th Malaysia Plan and the National Transformation Plan. MALAYSIA VISION VALLEY Option to sell ~8,800 acres NEW LABU HAMILTON Sime Darby Developing Sustainable Futures NEW LABU (KIBBY DIV) LANGA North-South Hay FARR Tenure of development 30-year project Total development area 379,000 acres Coverage area Seremban and Port Dickson in Negeri Sembilan Multimedia Super Corridor (MSC) SELANGOR Greater Kuala Lumpur KUALA LUMPUR PAHANG Kuala Lumpur Conurbation National growth conurbation population 2020 10.57 million N. SEMBILAN Own Line LABU OBEL Malaysia Vision Valley MALACCA The area is intended to focus on 4 key development drivers: High-technology manufacturing ■ Tourism ■ Skill-based education and research Specialised services ☐ MVV development is expected to: ✓ Attract investments of RM290bn by 2045 Create 1.38 million new job opportunities ■ Sime Darby Berhad holds c.8,800 acres of land ■ in MVV area, acquired for RM2.5 bn in FY17 Signed 29 option agreements with SD Property for the potential sale of 29 parcels The options are valid for a 5-year period (plus 3 years extension option) ■ The timing of exercise of the option by Property will be dependent on the MVV development plan which is currently being developed ■ Transfer value will be based on market price at the point of exercise Strictly Private & Confidential 37#39Appendices Strictly Private & Confidential 38 Sime Darby Developing Sustainable Futures#40Sime Darby Berhad Proposed Corporate Structure Post-Proposals Motors Industrial Sime Darby Developing Sustainable Futures (RM million) Sime Darby 30-Jun-17 Motors Industrial Logistics Others Group External Debt Cash 756 513 1,304 312 822 3,194 454 175 930 2,072 Revenue PBIT 20,602 633 10,127 303 55 31,087 (4) 64 91 784 Logistics Healthcare & Others 50% Ramsay Sime Darby 100% 100% Sime Darby Motors Sdn Bhd Sime Darby Industrial Holdings Sdn Bhd 100% Sime Darby Utilities Sdn Bhd Health Care Sdn Bhd group 12% Eastern & Oriental Berhad (1) Notes: (1) Principal activities - hotel ownership & management, property development and property investment (2) Existing owner of 8,793 acres of land located at Labu, Negeri Sembilan, which are earmarked for the Malaysia Vision Valley Project. Sime Darby Property Bhd ("SD Property") is granted call options to purchase these lands at any time during the option period (5 years with an option to extend for another 3 years) (3) Principal activities - Provision of support services to group companies, including Sime Darby Plantation Bhd ("SD Plantation") and SD Property. Entered into master services agreements with SD Plantation and SD Property to continue to provide shared services for a period of 3 years (4) Principal activities - insurance and reinsurance brokers, insurance advisory and consultancy services. Malaysia - 60% owned Sime Darby Lockton, Singapore and Hong Kong - 100% owned (5) Principal activities - holding of trademarks (SIME DARBY mark, logo and tagline). Entered into trademark and brand license agreement with SD Plantation and SD Property for the licence of the trademarks for a period of 4 years Strictly Private & Confidential 39 100% Kumpulan Sime Darby Bhd (2) 100% Sime Darby Global Services Centre Sdn Bhd (3) 60% or 100% Insurance Broking business(4) 100% Sime Darby Malaysia Berhad (5)#41Sime SDB Group Darby FY2017 Balance Sheet Historical Financials Sime Darby Developing Sustainable Futures Healthcare (FYE June; RM million) Motors Industrial Logistics Proforma & Others Fixed Assets 2,973 3,795 1,738 145 8,651 Associates, JVs and Investments 109 339 414 1,021 1,883 Inventories 3,461 3,619 3 20 7,103 Trade & Other Receivables 2,098 2,034 295 91 4,518 Other Assets 19 138 (11) 146 Tax Assets 160 328 41 309 838 Intra Group Balances 10 758 1 (769) Cash & Bank Balances 513 463 176 920 Total Assets 9,343 11,474 2,668 1,726 2,072 25,112 Share Capital 2,200 300 200 6,599 9,299 Reserves 1,305 5,095 510 (1,214) 5,696 Shareholders' Equity 3,505 5,395 710 5,385 14,995 Non Controlling Interests 214 18 120 Total Equity 3,719 5,413 830 23 5,408 375 15,370 Borrowings & Leases 756 1,315 312 Intra Group Balances 1,631 2,139 1,189 822 (4,959) 3,205 Tax Liabilities 148 274 6 32 Trade & Other Payables 3,006 2,217 143 405 Other Liabilities 83 116 188 18 460 5,771 405 Total Liabilities 5,624 6,061 1,838 (3,682) 9,841 Total Equity & Liabilities 9,343 11,474 2,668 1,726 25,112 Invested Capital ROAIC (%) Debt/Equity (%) 5,826 8,089 2,294 1,097 17,306 10.9 (0.1) 2.9 4.6 63.9 49.8 73.9 20.9 Notes: (1) Invested capital is total assets (excluding tax assets and intercompany balances) less operating liabilities (i.e. all liabilities except borrowings, intercompany balances, leases and tax liabilities (2) ROAIC is PBIT divided by invested capital Strictly Private & Confidential 40#42End Strictly Private & Confidential 41 Sime Darby Developing Sustainable Futures