CMS RESULTS PRESENTATION

FOR THE SECOND QUARTER OF 2016

1 SEPTEMBER 2016

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-lookingstatements as a result of a number of risks, uncertainties and assumptions. Representative examples of thesefactors include (without limitation) general industry and economic conditions, interest rate trends, cost of capitaland 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 thecontinued availability of financing in the amounts and the terms necessary to support future business. You arecautioned not to place undue reliance on these forward-looking statements, which are based on the current viewof management on future events.

The information contained in this presentation has not been independently verified. No representation orwarranty 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 MataSarawak 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, relianceor 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 arenot obligations of, deposits in, or guaranteed by, CMSB or any of its affiliates. An investment in Shares is subjectto investment risks, including the possible loss of the principal amount invested.

2

Today’s Presenters

3

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 Group Strategies & Going Forward

4

5

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

External factors are affecting Sarawak’s growth levels

• Low commodity & oil prices

• Weak RM

• Bank lending constraints

• Political sentiment on Malaysia

• Global economic sluggishness

SARAWAK OVERVIEW FROM CMS’ PERSPECTIVE

7

Sarawak’s medium to long term economic growth:

• State’s economy is expected to grow by 4% for 2016; a drop compared to earlier

projected GDP growth of 6.5% per annum, due to global environment and weaker

oil & commodity prices

• SCORE - investment continues but slower with Baram dam currently stopped

• Both Sakura Ferroalloys and Pertama Ferroalloys commenced their operations in

Samalaju in May and June 2016 respectively

• All packages for Pan Borneo Highway have been awarded; approx. 60% (RM13

bil) of the funding will be via a Sukuk Programme thru DanaInfra Nasional

• 2016 STATE BUDGET: RM5.97b for development & RM2.07b for OPEX

• 2017 STATE BUDGET: Likely to be per 2016 but with an even stronger focus on

rural infrastructure development & rural economic activity

SARAWAK OVERVIEW FROM CMS’ PERSPECTIVE

8

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

9

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)

LongLama

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.

KanowitSong

Samalaju

Baram

Tunoh

Samarakan

Baleh bridge

Sangan – Sg. Anap 18km

B1 : 16km

Samalaju Heavy and Energy

Intensive IndustriesMukah

Smart City,

Services Hub &

R&D

Baram

HEP, Oil Palm and

Forest Plantation

Eco-Tourism

TunohOil Palm and Forest

Plantation, Agriculture

and Eco-Tourism

Tanjung ManisHalal Hub

SIBU

SARIKEI

BATANG AI

HEP

(100 MW)

BETONG

SRI AMAN

KUCHINGSAMARAHAN

10

11

Section 2

CMS Overview

Our Vision & Mission

VISION

To be the PRIDE of Sarawak & Beyond

12

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

Company SnapshotSarawak’s largest company in

infrastructure development

Total assets: RM3,231mn

S/holders’ funds: RM2,018mn

NA per share:Net Cash per share (of RM0.50 each)

RM1.8

RM0.30

Key Statistics

Revenue: RM1,788mn

PBT: RM389mn

Basic EPS: 23.31 sen

DPS: 4.5 sen

13

ROE: 12.96%

ROA: 7.68%

Current ratio: 2.14 x

Issued Shares: 1074.38 mn

Share Price: RM3.79

Market Cap: RM4,071.9 mn

Historical PER: 16.7 x

PBV ratio: 2 x

Balance Sheet(FYE Dec 2015)

Income statement(FYE Dec 2015)

Key ratios (FYE Dec 2015)

Market metricsas at 15 August 2016

One of Sarawak’s largest listed company, with

over 2,200 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%

Substantial shareholders (as of 2 August 2016)

Shareholding (‘000)

%

Majaharta Sdn Bhd 134,775 12.54

Employees Provident Fund 122,589 11.41

Lejla Taib 111,000 10.33

Dato Sri Sulaiman AB Rahman Taib 88,395 8.23

Dato Sri Mahmud Abu Bekir Taib 88,200 8.21

Sarawak Economic Development

Corporation 60,896 5.67

Datuk Syed Ahmad Alwee Alsree, GroupExecutive Director (12 years in CMS).

14

Experienced Management with Proven Track Record

Centre

Key Business Divisions

Dato Isaac Lugun, CEO of Samalaju Industries

(20 years in CMS).Goh Chii Bing, ED/CEO of Cement Division (24 years

in CMS)

Dato’ Richard Alexander John Curtis, Group

Managing Director (10 years in CMS).

Lim Jit Yaw, CEO of the Construction & Road

Maintenance Division (10 years in CMS)

Vincent Kueh Hoi Chuang, ED/CEO of the Property

Development Division (4 years in CMS)

Chong Swee Sin, CEO of Construction Materials

& Trading Division (25 years in CMS).

Tuan Syed Hizam Alsagoff, Group Chief

Financial Officer (11 years in CMS).

Goh Chii Yew, CEO of Samalaju Property

Division (15 years in CMS).

Mohd Zaid Zaini, Head of ICT Division (2 years in

CMS)

Corporate Milestones

15

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 of UBG Bhd.

Re-acquired CMS Roads and Pavement.

Rationalisation of businesses to focus on key

competencies in Sarawak & SCORE

1974 1978 2001199619941989 200820072002 2010

Ceased operation of 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

20162013 2014 2015

MPA signed both PPA & EPC agreements

Share Price Performance

16

High Low

2014 RM 4.72 RM 1.47

2015 RM 6.00 RM 3.87

2016 RM 5.36 RM 3.17

17

Section 3

Business Overview

• 1H16 PBT lower than 1H15 due to:

11% lower sales volumes – bad weather (during 1Q16)

& lack of major new projects

Costs linked to new grinding plant commissioning

Weak RM affected raw materials costs

• PBT for 2Q16 has increased in comparison to 1Q16, due

to higher volume of cement sales

• Investment approved for a RM6.5 mil precast plant at

Bintulu

• Ready-mix sales have been increasing

Cement

Division

18

523 515548 560

272 258

6697 120 103

55 42

0

200

400

600

2012 2013 2014 2015 1H15 1H16

Revenue PBT

RM

mill

ion

• PBT for 1H16 of RM48 million was sustained despite a lower

revenue, due to better gross margins and lower oil prices

• Plans to further increase Sibanyis quarry’s capacity by 1.3m

Mtpa by end-2017

• Enquiries flowing in for LBU materials supply but no P&L

impact likely until 2017 as there will be delays

• Care will be needed for 3rd party LBU rates to ensure that

credit terms are not abused

Construction

Materials

& Trading

Division

RM

mill

ion

19

281

393

599 645

328254

41 55 76 10848 48

0

100

200

300

400

500

600

700

2012 2013 2014 2015 1H15 1H16

Revenue PBT

• Lower PBT was on the back of less construction works

undertaken & higher costs for state road maintenance

• Awarded an RM1.36 bil Pan Borneo Highway package with

JV partners Bina Puri in July 2016

• Contributions from Pan Borneo Highway is expected to be

competitive, coming from the main construction package,

materials supply & possible other sub-contract works

• Non-Roads Construction order book now at RM513.0 mil &

cautiously optimistic to grow it further

Construction

& Road

Maintenance

Division

RM

mill

ion

20

235289

364

444

209182

81 95 84135

47 41

0

100

200

300

400

500

2012 2013 2014 2015 1H 15 1H 16

Revenue PBT

• Profits remain resilient due to profit recognition of

showroom sale & solid revenues from Samalaju

Properties’ lodges

• All current property sales projects at Bandar Samariang &

The Isthmus are selling adequately due to good product

quality & competitive pricing

• Mydin Samariang opened in August 2016 & Water Theme

Park in 2017

• The Isthmus gathering momentum with multiple projects

underway

• Divisional GDV projections till 2018 remain on track

Property

Development

Division

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

RM

mill

ion

21

60

75

114

90

3541

24 31

46

20

6 7

0

20

40

60

80

100

120

2012 2013 2014 2015 1H 2015 1H 2016

Revenue PBT

• Lower commodity prices affected investor

sentiment leading to output reductions & production

start delays, thus affecting demand for the township

properties & at the hotel

• Lodges, reconfigured for longer term stays,

however exceeded budgets

• Sarawak Govt. signed a MoU with Hebei Xinwuan

Steel Group and MCC Overseas Limited to conduct

preliminary studies for the development of a USD3

billion steel plant in SIP

• New investors & project starts will happen in SIP –

patience is required

Property

Development

Division

(Samalaju)

22

• Sacofa was consolidated into CMS’ books as an associate

beginning 1 November 2015

• Sacofa is expecting organic revenue growth on the back of

bandwidth growth, rolling out of LTE sites & increased

fiberisation within the State

• Strategic plan being developed to accelerate Sacofa’s

growth

• PATNCI contribution to CMS for 2016 is expected to

remain on a steady uptrend

ICT

Division

23

155 153172

182

8593

8567

80

119

4553

0

50

100

150

200

2012 2013 2014 2015 1H15 1H16

Revenue PBT

RM

mill

ion

• Revenues & PBT on steady uptrend

• End to End automation & systems

enhancements lead to improved analytical

agility & enriched customer experience

• Strategic alliances regionally with China/HK

& Japan including online broking

• Loss making wealth management division

downscaled

Strategic

Investments

24

• PATNCI decline from RM33.34 mil in 1H15 to

(RM1.58 mil) in 1H16 due to steep fall in

manufacturing business

• Global economic slowdown & low O&G prices

limit demand for fabrication

• Petronas fabrication license aided by current

focus on Sarawak O&G development & use of

local companies offer longer term potential

• KKB:WCT consortium was awarded a RM1.29

bil Pan Borneo Highway contract in July

KKB ENGINEERING

Strategic

Investments

25

26

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 ProductCommencement of

OperationAnnual Capacity

Investment Value (USD)

Status

Tokuyama Polycrystalline Silicon 1st Phase: Jun 20132nd Phase: Apr 2014

1st Phase: 6,200 MT2nd Phase: 13,800 MT

2.5 billion In operation

Press Metal Aluminium Sep 20121st & 2nd Phase: 440,000 MTFull Capacity: 760,000 MT

2 billionAdvanced stage to

ramp up the 3rd

Phase

AML (PertamaFerroalloy)

Manganese Ferroalloy 2016 Full Capacity: 434,000 MT 325 millionCommissioned -

June 2016

Asia Advanced Materials

Metallic Silicon 2017 Full Capacity: 100,000 MT 203 millionEarthwork completed

Sakura Ferroalloys

Ferro manganese & SiliconManganese

2016Ferro Manganese: 100, 000 MTSilicon Manganese: 60, 000 MT

328 millionCommissioned -

May 2016

Cosmos Chemicals

High quality solar and electronics grade polysilicon

2017 25,000 MT 1.6 billionPre-earthwork

stage

OM Materials (Sarawak)

Ferrosilicon Alloys (1st Phase)Manganese Ferroalloys &

Sintered Manganese Ore (2nd

Phase)

Commission: 2H 2014 1st Phase: 308,000 MT 592 million (Slide 30)

MPA (Sarawak) Phosphate Products & CokeCommission: 1H 2018

Full production: 2H 2018

Phosphate Products: 500,000 MTCoke: 450,000 MT

545 million (Slide 31)

Key Projects at Samalaju Industrial Park

27

• Recorded a loss in 1H16 due to exceptionally low commodity

prices, low demand & currency hedging losses

• Project loans being restructured to ease cash flows pending

market upturn & full commissioning

• Plans being finalised to reconfigure smelters to focus on both

ferrosilicon & manganese

• In short term, low commodity prices will continue to affect

profitability but in the medium/long term, OMS’ 3 key

strengths will bring it to sustainable profitability. These

strengths are 1st quartile production cost positioning, its large

scale & its location

• CMS confident in OMS over the long term which is why it

acquired an additional 5% stake & subscribed in 2016 to

RM110.0 mil of CPS

OM MATERIALS (SARAWAK) Strategic

Investments

28

• Complex to be operational by Q1 2018;

fully commissioned by Q4 2018

• The PPA contract for 150 MW of power

was formalised during 1Q 16

• EPC agreement signed during 2Q 16

• Applied for UKAS grant incentive from

the Federal Government

• Parties now working towards Financial

Close in 2H16

MALAYSIAN PHOSPHATE ADDITIVES (SARAWAK)

Strategic

Investments

29

30

Section 4

Financial Highlights

Group Financials

31

2007 2008 2009 2010 2011 2012 2013 2014 2015 1H 2016

Revenue(RM’000)

871,793 893,033 874,600 943,476 1,012,609 1,203,565 1,416,841 1,693,898 1,788,008 745,723

PBT(RM’000)

(48,018) 150,570 98,526 118,796 178,715 226,906 294,894 341,452 388,596 65,669

PATNCI(RM’000)

388,165 95,770 40,989 65,781 120,023 135,735 175,072 221,335 248,149 8,949

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 2,032,718

ROE(%)

37.15 /(2.27)

7.70 /4.51

3.24 5.08 8.80 9.37 11.17 12.77 12.96 0.44

Borrowing(RM’000)

678,303 649,767 534,236 394,586 215,747 89,826 100,102 104,796 163,678 278,103

Gearingsratio

(times)0.55 0.52 0.42 0.30 0.15 0.06 0.06 0.06 0.08 0.14

EPS (sen) 117.82 29.07 12.44 19.97 36.43 41.3952.56/17.46

21.42 23.31 0.83

Cash(company)(RM’000)

626,190 322,086 404,726 753,990 625,542 493,129 579,392 674,600 256,881 219,228

1,481 1,654

1,812 2,018 2,033

524 614830

32527290 100 105 164 278

0.060.06

0.06

0.08

0.14

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

-

500

1,000

1,500

2,000

2,500

2012 2013 2014 2015 1H 2016

tim

es

RM

mill

ion

Balance Sheet

S/holders’ funds Cash Borrowing Gearings

Group Key Financials 2012 – 1H 2016

32

Revenue ’11 - ’15 CAGR = 15.3%

*Adjusted for share split & bonus issue in June 2014

1,2041,417

1,674 1,788

868 746

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2012 2013 2014 2015 1H15 1H16

RM

mill

ion

Revenue

PBT ’11- ’15 CAGR = 21.6%

227295

341389

16266

18.9%20.8% 20.4%

21.8%

18.6%

8.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

100

200

300

400

500

2012 2013 2014 2015 1H15 1H16

RM

mill

ion

PBT & PBT Margin

PBT PBT Margin

41.39

17.52 21.42 23.319.30

0.83

9.37%11.17%

12.77% 12.96%

5.32%

0.44%

-1%

1%

3%

5%

7%

9%

11%

13%

0

10

20

30

40

50

2012 2013* 2014 2015 1H15 1H16EPS ROE 1H ROE

RM

se

n

EPS ’11 - ’15 CAGR = 17.7%

Revenue Breakdown 2012 – 1H 2016

33

523 515 548 560

272 258

281 393

599 645

328 254

235

289

364

444

209

182

60

75

114

90

35

41

72

113

15

17

5

0

33

32

34 32

18

11

-

0

0

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2012 2013 2014 2015 1H15 1H16

Revenue by segment (RM'm)

Others

SamalajuDevelopment

PropertyDevelopment

Construction &Road Maintenance

ConstructionMaterials &Trading

Cement43%

36% 33% 31% 31% 35%

23%

28% 36% 36% 38% 34%

20%20%

22% 25%24% 24%

5% 5%

7% 5% 4% 6%6% 8%1% 1% 0% 0%3% 2%

2% 2% 1% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015 1H15 1H16

Revenue by segment (%)

PBT Breakdown 2012 – 1H 2016

34

66 97

120 103

55 42

41

55

76 108

48 48

81

95

84

135

47 41

24

31

46

20

6

7

25

27

9

2

(1)

0

(11)(10) (11)

(14) (11) (23)

17

34

18

(49) (50)

-

50

100

150

200

250

300

350

400

2012 2013 2014 2015 1H15 1H16

PBT by segment (RM'm)

Associates

Others

SamalajuDevelopment

PropertyDevelopment

Construction & RoadMaintenance

ConstructionMaterials & Trading

Cement29%

33% 35%27%

34%63%

18%19%

22%

28%30%

73%

36%32%

25% 35% 29%

62%

11%11% 13%

5%4%

11%

11%9% 3%

1%

-1%

0%

-5% -3% -3% -4%-7% -35%

5%9%

11%

-15%

5%

25%

45%

65%

85%

2012 2013 2014 2015 1H15 1H16

PBT by segment (%)

-74%

Dividend Policy

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

35

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

15 17 17 8.5 4.5

30.9 31.3 30.9

40.9

20

0

5

10

15

20

25

30

35

40

45

0

2

4

6

8

10

12

14

16

18

2011 2012 2013 2014* 2015*

Ne

t P

ayo

ut

Rat

io (

%)

DP

S (C

en

t)

Gross DPS and Net Payout Ratio (%)

Ordinary Dividend Net Payout Ratio (%)

RM 42.53 mil

RM48.35 mil

* Based on share of RM0.50 each

RM 37.08 mil

RM54.13 mil

RM 90.42 mil

36

Section 5

Group Strategies & Going Forward

Group Strategies And Going Forward

37

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 of its economic drivers in SCORE

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

38

Group Strategies and Going Forward

Riding on the Sarawak Growth Story

Investment in projects:

Hurdle rate / IRR: At least 18%;

Scaleable / long term sustainability;

Quality partners / JVs;

Raw materials processing / manufacturing and/or infra / services focus.

Maximise our core business divisions & our Strategic Investments to take advantage of Sarawak’s growth

An indispensable ally to its State’s development regardless of politics – thru professionalism and neutrality

Be known for our Corporate Governance, Sustainability & Management Competency

Acquire expertise / knowledge for regional expansion outside Sarawak later

To maintain a moderate risk profile

Strategies

Be the best proxy investment for Sarawak’saccelerating growth via:

Energy intensive industry investments; and

consequential infrastructure and relatedservices required across the State.

• Performance during 1H16 largely due to challenging

market & operational conditions

• Group’s core Divisions businesses continue to remain

resilient even during this period

• The continued focus towards a development oriented State

budget bodes well for CMS’ core Divisions

• CMS’ core Divisions are also well positioned to benefit from

the Federal Government’s RM16 billion Pan Borneo

Highway project

• CMS remains confident on achieving an acceptable

performance for 2016 with performance levels rising again

from 2017

Conclusions

39

THANK YOU.

ANY QUESTIONS?

40