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KUMPULAN PERANGSANG SELANGOR BERHAD

INVESTOR BRIEFING

1ST QUARTER 2019 RESULTS

“Stronger Contribution by Core Businesses”

31 May 2019

Table of

ContentsSECTION 1 : The KPS That Was 4 - 6

SECTION 2 : Business Transformation Plan (“BTP”) 8 - 11

SECTION 3 : Sector Reclassification 13

SECTION 4 : 1Q19 Financial Results

a. Sectoral Performance Review b. BTP Earnings Translationc. Group Financial Results

17 – 2628

30 -32

SECTION 6 : Future Plans & Prospect 34 - 38

SECTION 1

THE KPS THAT WASI

4

Core Interest in Challenging SectorsResulting in Unfavourable Market Perception

Non Controlling Stake

Unattractive Business Model

Products / Services Lacking USP

DelicateFinancials

Investments in 2015

Infrastructure Telco Oil & GasUtilities Hospitality Trading

(30.0%)

(20.0%)

(90.8%)

(30.0%)

(100%)

PHP (100%)

Ceres Telecom(34.3%)

(40.0%) (36.0%)

Perception

0.8

1

1.2

1.4

1.6

1.8

2

Unsustainable Growth Due to Absence of Core Catalysts Declining Share Price & Dependability of Dividend Distribution on Sale of Assets

5

2014 2015 2016

Shar

e P

rice

(RM

)

Negotiations in relation to water assets continuing from 2013 gave rise to speculative share price performance

Oct 2015: Announcement -proposed disposal of ABASS

Revenue (RM mil) PAT (RM mil)

117.6

314.0

58.9

286.0

101.9

144.5

Dividend per Share (sen)

4.00 2.00 4.25

Sustained Business Challenges Called for a Paradigm Shift in How We Do Business

6

Business Transformation

Plan

(“BTP”)

Continued Decline in Share Price

Imminent Divestment of

SPLASH

UnfavourableSentiment

Amongst Investors

“Creating Sustainable Value to Shareholders”

SECTION 2

BUSINESS TRANSFORMATION PLAN (“BTP”)I

A More Robust Strategy under BTPBefore & After Business Transformation Plan 2016

8

BEFORE AFTER

Sector Agnostic

Over-exposure to single sector

Generalist approach to investment

Selangor-centric business

Investee companies unable to pay dividends

Unsustainable Free Cash Flow

‘Heavy’ cost structure

Sector-specific

Balanced exposure over core sectors

Focused investment parameters

Boundaryless investment portfolio

Pre-investment Value Creation Plan

Balanced investment emphasis : dividends & growth returns

Efficient management of cost

Ensuring Sustainable Growth & Enhancing Shareholders’ ValueFour Pillars Crafted to Support BTP Objectives

9

Acquisition of Strategic Assets

▪ Majority stake▪ Mature / Market Leader▪ Financially Stable▪ Ability to Expand to be Regional or

Global Player

Creating Value in Subsidiary Companies

▪ Setting Value Creation Plans for pre and post acquisition ▪ Active Participation via

▪ EXCO and Board

Human Resource Development

▪ HR Process Improvement▪ Inculcating High Performance Culture

Institutionalising the Subsidiaries

▪ Focus on improving efficiency &optimising cost

▪ Reviewing processes of departments & adopting best practices

INVESTMENT

CRITERIA

AcceptedTakeover Offer of

SPLASHfrom Air Selangor

10

BTP in ActionAcquisitions and Corporate Exercises Since

Acquired 51% stake in Smartpipe

Acquired 60% stake in Kaiserkorp

Emerged as major

shareholder for Aqua-Flo

(51%)

Acquired 71.4% stake in Century Bond

Emerged as major shareholder for KPS-HCM (51%),

Smartpipe (60%) & Century Bond (98.9%)

Formed KKMW to manufacture King Koil Mattress for

US market

Acquired 100% stake

in CPI

Disposed:

Brisdale Hotel, Cengren Global

&Ceres Telecom

Disposed:

PTGC,ABASS

2016

2017

2018

Proposed Acquisition of 100% stake in

Toyoplas

2019

60%

11

Our Business TodayControlling Stake in Market Leaders in High Growth Industries

11

Manufacturing Trading Infrastructure AssociatesLicensing

KKMW

KKLC

60%

100%98.9%

60%

100%

51% 51% 40% 20%

SECTOR RECLASSIFICATIONI

SECTION 4

13

Bursa Sector ReclassificationProviding Accurate Business Benchmarking & Valuation

UTILITIES

INDUSTRIAL PRODUCTS & SERVICES*TO

*Effective 8th April 2019

FROMWith departure of SPLASH,

KPS has no direct exposure

in the water sector

To reflect KPS’ existing investment focus, business appeal

and future business direction

SECTION 5

1Q19 FINANCIAL RESULTSI

SECTORAL PERFORMANCE REVIEWI

ManufacturingI

Century Bond BhdRevenue Driven Mainly by Carton Division

17

▪ 80% utilisation

✓ Paper Bags (3 - Medan, Senai, Ipoh)

✓ Carton Box (2 – Senai, Nilai)

▪ 50% utilisation

✓ Plastics (1 - Senai)

▪ Steady revenue growth overall, driven by highercontribution from carton division

1Q19 HIGHLIGHTS

VALUE CREATION PLAN

Optimise product mix for higher-margin shrink plastic

Strengthen MY non-cement bags market: enteredadjacent industries – minerals & dry-mix segments

Focus more on offset carton and pulp mouldedproducts

97.4 89.5 90.8

21.8 21.1

32.6 45.262.7

12.3 17.1

12.4 14.1.0

13.4

3.4 3.6

12.519.3

19.4.0

5.0 4.4

6.76.0

3.6

1.6

FY2016 FY2017 FY2018 1Q2018 1Q2019

Paper Carton Consumer Plastic MLM

AS AT 31 MAR 2019 (RM’M)

FINANCIAL PERFORMANCE

174.1

189.9

46.2

Rev

enu

e (R

M m

il)

44.0

161.6

CPI (Penang) Sdn BhdHigher than Expected Sales, Maintained High Margins

18

▪ 80% utilisation

✓ Location : Bayan Lepas, Penang

▪ Steady revenue contribution driven by higher-than-expected ETP’s tooling and EMS sales. ETPcontributed 86% to revenue while EMS 14%

▪ Margins generally maintained high

1Q19 HIGHLIGHTS

VALUE CREATION PLAN

ETP: Focus on higher margins customers and newmarket to diversify customer base

Expansion of operations capacity : acquisition of newland, machineries for ETP & EMS expansion

Venture into new plastic segments : cautiousexploration into high performance engineeringthermoplastic (HPTP) via aerospace industry

48.6 52.6 43.318

36.0 3630.2

9.7

32.639.0

39

12.7

18.3

17.8

14.8

5.2

FY2016 FY2017 FY2018 1Q2019

Automotive Healthcare Communications Others

FINANCIAL PERFORMANCE

AS AT 31 MAR 2019 (RM’M)

151.8

45.6

127.3**

**Note : Figure is based on 9-month contribution

Rev

en

ue

(R

M m

il)

135.4

King Koil Manufacturing West Lower Overall Sales on 16% Capacity Utilisation

19

▪ 16% utilisation

✓ Location : Phoenix, Arizona

▪ Manufactured products contributed to 62% ofsales, which included new design showcased atWinter Market in January. The remaining 38% bydirect ship

▪ However, manufactured margin was lower due tolower overall sales and higher promotional lines

AS AT 31 MAR 2019 (USD’M)

1Q19 HIGHLIGHTS FINANCIAL PERFORMANCE

VALUE CREATION PLAN

Exports to China, Greece & Vietnam for made-in-the-US demand

Sales growth of premium lines

Bed in a box – for organic growth to cater for onlinesales

10.0

3.4

FY2018 1Q2019

Rev

enu

e (U

SD m

il)

TradingI

Aqua-Flo Sdn BhdLower Chemicals Sales Due to Dry Weather & WTP Commissioning Delay

21

▪ In addition to RM162 million by Air Selangor,secured 7 new projects from SADA, PBA, SAINS &Laku Sarawak worth ~RM16 million

▪ Sales of chemicals shortfall due to:

✓ Dry weather in Jan – March 2019 affectingdemand of chemicals

✓ Semenyih 2 not fully operational

✓ Langat 2 and Labohan Dagang expected tooperate only in 2Q19

AS AT 31 MAR 2019 (RM’M)

1Q19 HIGHLIGHTS

VALUE CREATION PLAN

FINANCIAL PERFORMANCE

78.895.3 104.6

25 25.0

2.7

2.91.7

0.50.6

2.4

3.14.8

0.9 1.0

FY2016 FY2017 FY2018 1Q2018 1Q2019

Chemicals Equipment Project & Misc Sales

83.9

101.3111.1

25.9

Rev

enu

e (R

M m

il)

26.3

Continue bidding for tender from water companies :Pending RM~40 million

Expansion into new sectors: industrial watertreatment & supply of water meters

LicensingI

King Koil Licensing Company IncHigher Royalty Fees from International Markets

23

▪ International royalties were higher due toadditional FY2018 fees from China and Indonesiawhich was reported and recognised this quarter

▪ International market made up for 88% of totalroyalties of USD2.6 million

AS AT 31 MAR 2019 (USD’M)

Q1 2019 HIGHLIGHTS

VALUE CREATION PLAN

FINANCIAL PERFORMANCE

2.5 1.2 1.3

0.3

4.6

5.2 5.7

2.3

0.7 1.6 0.4

0

1.2 0.4 0.1

-

FY2016 FY2017 FY2018 1Q2019

Royalty-US Royalty-Int Corporate Sales Other

2.8

7.5

9.0 8.4

Rev

enu

e (U

SD m

il)US nationwide distribution: solidify strategicrelationship with Blue Bell to form a unified King Koilfront for coast-to-coast coverage

International expansion & management : structuredlicensing process, stronger engagement & support

InfrastructureI

25

▪ Lower revenue due to delayed M&E and elevatedtank works in Pulau Indah Phase 3C Project

▪ Remaining orderbook from Central Spectrum ~RM50 million.

▪ New orderbook from Central Spectrum and LATARworth ~RM1 million

AS AT 31 MAR 2019 (RM’M)

1Q19 HIGHLIGHTS

VALUE CREATION PLAN

FINANCIAL PERFORMANCE

KPS-HCM Sdn BhdLower Revenue due to Delayed Works

Actively tendering for new projects worth ~RM150 million

Going forward, to improve bidding competitiveness by securing SPKK, OSH and EMS certifications 0

36.7

72.2

15.011.6

FY2016 FY2017 FY2018 1Q2018 1Q2019

Revenue

Rev

enu

e (

RM

mil) Dormant

26

▪ Orderbook : RM20.0 million. To replace existing16.3 km pipework in Hulu Langat and KualaLumpur, ending October 2019

▪ Lower revenue as Smartpipe is yet to secure newprojects and delay in current projects.

▪ Long-term prospect: Well positioned to capitalisefrom NRW projects

AS AT 31 MAR 2019 (RM’M)

1Q19 HIGHLIGHTS

VALUE CREATION PLAN

FINANCIAL PERFORMANCE

Smartpipe Technology Sdn BhdStart-up investment in Compact Pipe Providing NRW-reduction solutions

Positioning as integrated new tech/ conventional player : broad focus as NRW solutions provider & pipe rehabilitation contractor

Revenue generation via engagement with key players : continuous active engagement with state water players; pilot projects to prove technology & expertise.

4.2

20.2

5.4

2.6

FY2017 FY2018 1Q2018 1Q2019

Revenue

Rev

enu

e (R

M m

il)

BTP Earnings TranslationI

28

Enlarged Earnings BaseCore Business Strengthening Dynamics

-2

4KPS-HCM,RM11.6m

6

8

KKLC,RM11.2m

0

1Q19 PBT (RM mil)CPI,RM45.6m

CBB,RM46.2m

AquaFlo,RM25.9m

Smartpipe, RM2.6m

10

2

KKMW,RM13.8m

1Q19 Revenue (RM mil)

GROUP FINANCIAL RESULTSI

30

Continued with Growth TrajectoryStronger Overall Financial Performance

Healthy GrowthRevenue01

Concentration in Manufacturing SectorStreamlining Focus02

Strong TurnaroundOperating Profits03

Moving On Without SPLASHNew Earnings Dynamics04

REVENUE BREAKDOWN

31

Revenue GrowthStronger Manufacturing Contribution by CBB, CPI and KKMW

Manufacturing, 105.667%

Trading, 25.916%

Licensing, 11.27%

Infrastructure , 11.88%

Investment Properties2.9, 2%

Q1 2019Revenue

RM157.5 m

SECTOR Q1 2019 Q1 2018

Manufacturing 105.6 44.0

Trading 25.9 26.3

Licensing 11.2 7.8

Infrastructure 11.8 14.9

Inv. Properties 2.9 0.6

Inv. Holding 0.0 2.2

TOTAL 157.5 95.8

32

KEY HIGHLIGHTSStronger Contribution from Core Businesses

Note : Q1 2018 normalised results is by excluding SPLASH Holdings results

REVENUE

157.5

95.8

Revenue

+ 64%

Group revenue recorded higher due to:

▪ Strong manufacturing contribution of 67% to total group revenue

▪ New revenue generated from CPI and KKMW

▪ Higher international royalties for licensing business

22.9 22.6

2.5

EBITDA

EBITDA + 1%

Group EBITDA recorded higher due to:

▪ Higher Revenue & Cost of Sales due to new contributions from CPI & KKMW as compared to nil in Q1 2018

7.2

15.5

-4.6PBT

PBT

Group PBT recorded lower due to:

▪ Higher finance cost of +145% from previous year

▪ Higher depreciation charges at CPI

▪ Lower share of profits from associates -NGC and absence of SPLASH

- 54%

2.5

14.2

-5.9PAT

PAT

Tax Rate = 24%

- 82%

1Q 2019 1Q 2018 1Q 2018 (N)

SECTION 6

FUTURE PLANS & PROSPECTI

34

Organic Business Catalysts Manufacturing to Lead Growth & Value Creation

Optimising product mix and margins with offset printing and shrink plastic

Expansion plan is underway to cater for higher demand from ETP

and Electronics

The planned increase in mattress retailers expected to boost sales for KKMW

KKLC’s international royalties to continue to be supported by top international licensees

35

New Growth Catalyst via M&AProposed Acquisition of Toyoplas Manufacturing (M) Sdn Bhd

Can integrate with our core assets for focus and synergy

Has potential to grow to be market leaders

Has strong dividend paying capability and can provide immediate earnings traction

Target Completion:

3Q19

Why Malaysian-Based

Manufacturing?*

• Higher Sector Contribution to

GDP Relative to Regional Peers.

Historically ~ 22%

• Ranked 8th in Asia for

Innovation & Technology

• To benefit Further from

Industry4.0 due to Innovation

• Availability of Natural

Resources, Wider Sectoral

Potentials, Complete Ecosystem

• Conducive Infrastructure,

Labour, FDIs, FTAs & Broad

Trading Partners

*sources: The World Bank, AT Kearney, Cornell University

Recent Proposed Acquisition – Toyoplas Manufacturing (M) Sdn BhdBolt-on acquisition, creating a major player in the plastic injection moulding industry

36

▪ Toyoplas is involved in the plastic injection moulding industrywith an integrated capability from mould fabrication, precisioninjection moulding and assembly

▪ Eight locations across China, Malaysia & Indonesia

▪ The revenue mix is diversified based on geographical andindustrial exposure

▪ Toyoplas’ customer portfolio is backed by strong customer baseof market leaders and multinationals involved in the consumerappliances, communications & multimedia and automotivesectors

OVERVIEW

Valuation RM311.25 mil

Equity Stake 100%

Funding 53% debt, 47% equity

Signing Date 17 May 2019

COST OF INVESTMENT

FINANCIAL PERFORMANCE (USD’ mil)

Revenue by geography Revenue by industry

2019 Capex Guidance Mainly for CBB, CPI & KKMW for Capacity and Business Expansion

37

Company RM million Utilisation

Perangsang Selangor 50 - 60 Plaza Perangsang Development Phase 2

CBB 6 - 8 Machine Upgrade for Improved Capacity

CPI 50 - 60 Land Acquisition & EMS Expansion

KKMW ~1 New Machineries

TOTAL* 100 - 130

*2018 ~RM40 million, most of which due from King Koil, CBB and CPI

38

Strategies for Continued SuccessGrowth from New Earnings Base

2019

Value Creation & New Investments Opportunities

LOWER EARNINGS BASE

ONGOING BTP Earnings Base to Increase in Line with BTP

Departure of SPLASH Resulted in Earnings Gap

TARGETED RESULTS Market Cap Expected to Reflect Increased Earnings Base

ONGOING BTP

2019

2021

THANK YOU

40

Disclaimer on Forward Looking Statement

Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or “the Group”) makes no representation or warranty, whetherexpressed or implied, as to the accuracy or completeness of the facts highlighted in this presentation, disclaiming responsibilityfrom any liability arising from the reliance on its contents.

This presentation and related discussions today may contain “forward-looking statements”. Forward-looking statements involveinherent risks and uncertainties and other factors that are in many cases beyond our control. Although Perangsang Selangorbelieves that the expectations of its Management as reflected by such forward-looking statements are reasonable based oncurrent information, no assurance can be given that such expectations will prove to have been correct. Should one or more of therisks and uncertainties materialise, actual results may vary materially from those anticipated or projected.

Accordingly, readers are cautioned not to place undue reliance on such forward-looking statements. In any event, thesestatements speak only as of their dates and we undertake no obligation to update or revise any of them, whether as a result ofnew information, future events or otherwise.

This presentation and its contents are strictly confidential and must not be copied, reproduced, distributed, summarised,disclosed, referred or passed in any form to others at any time without the prior consent of Kumpulan Perangsang SelangorBerhad.