Corporate PresentationDisclaimer Information contained in our presentation is intended solely for your personal reference and is strictly confidential. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information about the company. Neither we nor our advisors make any representation regarding, and assume no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. In addition, the information contains projections and forward looking statements that reflect the company’s current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the company’s assumptions are correct. Actual results may differ materially from those projected. This presentation is strictly not to be distributed without the explicit consent of the Company’s management under any circumstances. 2 Table of Contents Brief Corporate Profile Overall Financial Performance Financial Results Analysis Segmental Breakdown Analysis Dividend Track Record Shareholding Statistics Market Outlook & Prospects Analysts’ Valuations 3 Briefing Corporate Profile 4 . including the supply of machinery and equipment to Petronas and its production sharing contract partners. Naim is the holding company of Naim Land Sdn Bhd (“NLSB”) (formerly known as Naim Cendera Sdn Bhd). Naim is a Class A Bumiputera Contractor with ISO 9001 Certification. and infrastructure projects. 5 Oil and gas services through its 34% shareholding investment in Dayang Enterprise Holdings Berhad . civil engineering.Introduction to Naim Holdings Berhad Naim Cendera Holdings Berhad (“NAIM CENDERA”) was incorporated on 5 July 2002 and subsequently listed on the Main Board of Bursa Malaysia Securities Berhad on 12 September 2003. oil and gas. Miri and Bintulu. And also an approved licensed contractor for major construction and civil works. Naim focuses its business efforts on 3 principal areas as follows: Integrated property developer based in Sarawak with projects covering Kuching. Its name was changed from Naim Cendera Holdings Berhad to Naim Holdings Berhad (“NAIM”) in March 2009 and is listed on the Main Market of Bursa Malaysia Securities Berhad under the Property Sector. NLSB was formed on 12 April 1993 and has been active in property development and construction since September 1995. Contracting of construction. Quarry Operations. Trading & Services Via Associate – Dayang Enterprise Holdings Bhd Construction Other Businesses Oil and Gas 6 .Group Structure (by Business Segment) Property Development Property Property Investment Engineering & Construction Manufacturing. Property Development 7 . Has potential to develop commercial and other properties worth more than RM 3. was completed in December 201. Permy Mall with lettable floor area of 153. Bintulu and Miri for injection into Real Estate Investment Trusts (REIT) in future.000 sq ft.000 units of residential.0 billion in Kuching.5 billion.620 acres strategically located with estimated future GDV of RM9. Accumulated remaining land bank of 2.In a Nutshell Developed more than 16. commercial and industrial properties throughout Sarawak valued at more than RM 2. Naim first investment property. It is currently 94% tenanted and generating a gross return of 12%.5 billion. 8 . Past 11-year Property Sales Value & Units 9 . 10 . Desa Ilmu and Riveria in Kuching. e. Low holding cost for the bulk of land bank owned by Naim as some received as payment in kind from completed construction jobs.Naim’s Core Competitive Strengths Long track record in building townships. This provides greater flexibility in the timing for launching Naim’s property projects based on prevailing market demand. Bandar Baru Permyjaya in Miri.g. 112 Properties Sold Property Development Projects Bandar Baru Permyjaya FY2010 Units 429 35 29 493 Sales Value 122 6 14 142 11 (Unit: RM million) FY2011 Unbilled Sales 41 8 7 56 Units 329 116 104 549 Sales Value 113 29 42 184 Unbilled Sales 104 43 29 176 Desa Ilmu Riveria TOTAL .000 0* 112 2.Overview of On-going Projects Gross Development Value Property Development Projects Bandar Baru Permyjaya (Miri) Desa Ilmu (Kota Samarahan) Riveria (Kuching) TOTAL * Note: Development is at tail-end.01.871 Completed GDV in FY2011 1.055 Remaining GDV as at 01.355 467 233 2.2012 (RM million) 2.242 438 191 1. (Unit: RM million) Year of Launch 1995 2000 2005 Completed GDV in FY2010 1. Overview of On-going Projects Take-Up Rate of New Sales Launches (for Residential and Commercial Units) Property Development Projects Bandar Baru Permyjaya Desa Ilmu Riveria TOTAL FY2010 Units Launched 162 122 6 Take-up Rate 67% 31% 100% Sales Value (RM mil) 28 7 3 Units Launched 417 108 108 (Unit: RM million) FY2011 Take-up Rate 92% 56% 98% Sales Value (RM mil) 132 16 42 290 50% 37 633 190 12 . Property Investment 13 . At present. The total development cost including land and building is RM52 million (land cost of RM3 million and building cost of RM49 million) with gross floor area of 275. 14 .000 sq ft.0 million and RM3. Miri Retain a proportion of future properties to rent Batu Lintang Piasau Camp Bintulu City Centre Own & operate rental properties Pantai Piasau Residences To launch a REIT when property investment assets has reached sufficient size The 2-storey Miri Permy Mall was completed on 28 October 2011.Creation of Real Estate Investment Trusts Completed properties Naim Holdings Set up property investment arm Naim REIT (future plan) Permy Mall. its occupancy rate is 94% since February 2012 and is expected to generate rental income of RM8 million per annum. The estimated fair value for the building and land is RM85.6 million respectively as at 31 December 2011.000 sq ft and lettable floor area of 153. Construction 15 . 940 1.291.936 3.448 433.621.5 billion.324 Note: The contracts above do not include construction of NAIM’s own property developments estimated at RM2.235. 16 .Construction Track Record Completed Contracts by Client Base Federal Contracts State Contracts Others Contracts TOTAL Total Contract Value (RM ‘000) 1. Past Projects Completion Performance 30% 70% Ahead of Schedule On Schedule Note: The above percentage is based on total 30 completed projects undertaken from January 1997 to March 2012.Track Record and Order Book • Has completed more than RM 3. 17 . all delivered on time or ahead of schedule within specifications and budget.0 billion worth of construction contracts. Given our track record and past experience of 100% conversion to LOAs. Successful bids to sustain order book and earnings beyond 2014.678. Order Book reflects Naim’s share only.5 96.1 Value To Run (RM million) 1. we are very confident that these LOIs will become firm orders.2 Overseas TOTAL • • • 154.221 million at LOI stage.9 279.822.8 2. Order book includes RM1. Note: i. LOI values stated are estimates only and are subject to change.3 339.845.602 million with firm contracts and RM1. 18 . Share of JV subject to ongoing discussion with JV partners.8 2.203. Does not include projects currently bidding for. ii.7 148.6 Current order book will sustain earnings growth for next 2 to 3 years.3 483.Construction Order Book Contracts by Client Base Federal State Others Order Book Value (RM million) 1. although this cannot be guaranteed. Kuching Institut Latihan Perindustrian. Limbang Sarawak State Legislative Assembly Complex. Kuching Kompleks CIQ. Miri Client Federal Government Federal Government State Government Federal Government Federal Government Federal Government Federal Government State Government SPNB Contract Value (RM million) 98. Miri Kolej Sains Kesihatan Bersekutu.5 70.8 May 2009 April 2009 19 .0 (Phase2) 313.0 37.0 73.0 (Phase1) 33.Notable Past Completed Projects Project Institut Kemahiran Belia.5 Completion Date May 2002 Nov 2004 Dec 2004 May 2005 May 2005 Dec 2005 Dec 2006 Feb 2008 July 2008 Police General Operations Force Camp. Kuching Affordable Housing Project at Desa Ilmu.5 90. Kuching 296. Miri Upgrading of Sibu Bintulu Road Low-Cost Housing for HDC.1 (Phase2) 279.7 76.0 (Phase1) 96. 5 148.0 176.Notable Past Completed Projects Project Maktab Rendah Sains Mara. Mukah Upgrading of Sibu Julau Road Kuching Flood Mitigation Project (Phase 1) Affordable Housing Project Bakun-Similajau Transmission Line (Package A) Selangau Matadeng Road Upgrading of Kings Road.0 56.8 Completion Date May 2009 June 2010 Feb 2010 March 2010 July 2010 State Government Fiji Government Ministry of Education SESCO State Government 202. Fiji 8 National Schools and Hostels Bakun-Similajau Transmission Line (Package B) Bengoh Dam.0 228.6 310.1 63. Kuching Client Federal Government JKR Federal Government SPNB SESCO Contract Value (RM million) 48.7 104.8 281.1 April 2011 Aug 2011 Oct 2011 Sept 2011 Dec 2011 20 . 72 74.64 84.82 197.67 Aug 2012 July 2009 Aug 2013 Aug 2012 21 .17 67.75 Affordable Housing Projects Sabah Oil and Gas Terminal (SOGT) Rehabilitation & Maintenance of Fiji National Highway Bengoh Dam Resettlement Scheme Complex Islam Murum Dam Resettlement Scheme Jalan Kampung Semadang/ Bau TOTAL SPNB Petronas Carigali 560.46 244.486.53 28.40 Fiji Government State Government Majlis Islam Sarawak 142.80 119.Notable On-going Construction Projects Contract Value (RM million) Project Duration Start Aug 2007 Aug 2010 Target Ending Mar 2014 Feb 2014 Client Total Value to Run (1 Apr 2012) 451.17 3.30 959.40 Mar 2010 Oct 2010 Apr 2009 Dec 2012 Jan 2013 Sep 2012 State Government State Government 197.76 179.65 1.60 94. Investment in Dayang Enterprise Holdings Bhd 22 . 6% 23 .11x) PAT margin of 25% is higher than peers’ average of 11.6x revenue) – mid Feb 2012 RM802 mil contract win in Feb 2011 RM125 mil contract win in Feb 2012 from Talisman Cash pile of over RM260 million & low gearing (0. 1 under construction) and 2 supply vessels Over 20 OSV under investee (Perdana Petroleum) RM1.4 billion (or outstanding order book of RM1.4 billion .95 million shares (representing 33.6 % shareholding from Dayang share capital of 550 million) Dayang’s Valued Proposition to Naim Leading O&G Maintenance Services Provider Strong Operational Asset Base Record Order Book Size Earnings Visibility Reaffirmed Strong Financials and Margin Operating exclusively in Sabah & Sarawak over the last 20 years 5 Workboats (incl.Brief Introduction on Dayang Naim is the single largest shareholder in Dayang with 184. 365 375 485 * Note: Estimates only.5 times of FYE2010’s revenue of RM255 mil 24 .207 Balance Contract Value 1.Dayang: Current Order Book (as at 15 Feb 2012) Original Value * (RM mil) 802 150 500 150 80 400 125 Description Balance Contract Value * (RM mil) 680 0 100 80 80 300 125 Contract Completion Date Feb 2016 Dec 2011 Mar 2012 Nov 2012 Feb 2013 plus 2 yrs Mar 2015 plus 1 yr Management’s Estimation for Completion (RM mil) 2011 120 30 100 45 20 60 - 2012 160 100 45 20 80 60 20 Petronas Carigali: Topside Structural Maintenance Petronas Carigali: Integrated Minor Maintenance (IMM) Petronas Carigali: Hook-up and commissioning Murphy Sabah: Topside Major Maintenance Brunei Shell Petroleum: Charter of Dayang Zamrud Sarawak Shell & Sabah Shell: Topside Maintenance Contract Talisman Topside Maintenance Contract NEW Workboat “Dayang Topaz” 2. Almost 1. 000 70.000 30.785 28.731 400.000 150.000 RM million 255.129 71.000 0.000 200.128 127.134 196.000 2007 2008 2009 2010 2011 # 250.954 44.000 50.000 20.000 2007 2008 2009 2010 2011 # Note (#): For illustrative purposes. 2008 financial performance is base on 15 months period results instead of 12 months. 25 .000 350.323 Profit After Tax 90. 2007 financial performance is presented on a proforma basis as if all the subsidiaries were part of Dayang Enterprise Holdings Bhd Group since 1 January 2007.000 10.000 83.000 300.385 80.000 181.852 100.Dayang Past Financial Performance Revenue 382.000 40.444 67.000 RM million 60.000 0.000 50. including 15 AHTs.Corporate Developments in FY 2011 2011 2012 Feb Mar Oct Dec Bonus Issue (1:4) completed to reward shareholders Secured TSM LOA from Carigali worth RM802 million Secured contract extension from Murphy. 7 workboat and workbarges One Additional 300 pax new workbarge by Dec 2011 Vessel Utilisation rate currently around 80% Investment is a collaboration to position Dayang favourably for new project/tender and to further consolidate Dayang’s leading position in the O&G offshore maintenance support industry 26 . estimated to be additional RM100 million Rights Issue (1:4) oversubscribed Investment in Perdana Petroleum Bhd Leading OSV charter in Malaysia Over 20 OSVs. Overall Past Financial Performance 27 . 000 80.Uninterrupted Financial Profitability Net Profit Attributable to Shareholders 97.000 40.000 10.000 0. 28 .145 69.628 76.229 46.747 RM million 2003 2004 2005 2006 2007 2008 2009 2010 2011 Since Naim was listed on Bursa Malaysia in 2003.495 48.000 60.274 80.000 70.000 20.000 90.000 50. it has never suffered losses in any single financial year while journeying through various economic cycles and slowdown.483 66.000 84.981 79.000 30.750 100. 29 489.000 0.000 RM million 500.499 400.651 539.Consistent Growth of Shareholder Funds Shareholder Funds 747.228 652.000 2003 2004 2005 2006 2007 2008 2009 2010 2011 An uninterrupted profitability track record has enabled Naim to build up its shareholders’ funds year-on-year to become close to RM750 million as at end 2011.182 800.000 600.000 700.000 400.816 459.263 587.000 200.000 100.087 352.000 300.015 .318 724. FY2011 & 1Q FY2012 Financial Results Analysis 30 . Executive Summary on FY2011 Results Naim achieved one of the lowest revenue & profitability levels in FY2011 compared to past 5-year financial performance Naim’s gearing position is manageable and ready to seize new business opportunities by leveraging on its RM200m cash reserves Naim is financially (balance sheet) well positioned ahead of any economic slowdown in 2012 and beyond 31 Income from associates and joint ventures contributed significantly to the Group’s overall profitability Operating cash flows remained positive in FY2011 and sharp increase in financing net inflow after issuance of Islamic bonds . 91 97.44 Audited FY2011 411. However.8 million) and from associate Dayang Enterprise (RM28.84% 132.3% Overall. compared to FY2010.68 41.6 million) helped to uplift overall PBT of the Group.16 Y-o-Y Change -32. 32 .88% 48.52% 57.7% n/a -51. lower profitability was recognised by both property and construction division in FY2011.3% Profit before tax margin Profit after tax Net profit attributable to shareholders EPS (sen) 13.89 63.8% -52.75 n/a -56.15 46.8% -61. Correspondently.25 -52. compared to FY2010.69 164.55% 99.63 19.1% 26. higher profitability contributed by joint ventures (RM12.Y-o-Y Financial Performance FYE 31 December (RM million) Revenue Gross profit Gross profit margin Profit before tax Audited FY2010 612.93 15. lower revenue was recognised by the property division and lower contract was completed by construction division in FY2011.04 21. 87 10.16 22.54 18.17 8.33 19.55 20.09 94.94 14.04% 21.95 12.16 8.79 33 .56 13.66% (0.49 14.67%) 12.63) (0.10 94.16 103.80% 0.83% 11.41% 16.64% 8.08 6.23 5.11 6.93% 6.82% 19.98 24.49 13.Quarter-on-quarter Financial Performance Quarterly Period (RM million) Revenue Gross profit Gross profit margin Operating profit (EBIT) Operating profit margin Profit before tax Profit before tax margin Profit after tax Net profit attributable to shareholders EPS (sen) 1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2011 1Q FY2012 120.30% 9.24 4.25 4.77% 6.09 19.39 8.99 2.89 14.12 6.86 16.72% 16.33 93.89 12.44 23.74 0.63% 22.11 18.39% 13.90 22.01% 12. 02 250.21 5.46 0.45 213.40 20.09 347.2% Current liabilities Current ratio (times) Short term debt Long term debt Total debt Total equity (including MI) Total debt to total equity ratio Cash reserves Net cash / (net debt) 245.8% -92. after Naim successfully issued RM300 million Islamic Bonds in 2011.0% 3.90) 140.0% 119.99 41. 34 .18 250.2% 0.50 0.43 7.4% 1537.5% Net debt to total equity ratio Shareholders’ funds Number of shares (gross) Net assets per share (RM) 0.79 Y-o-Y Change 25.00 2.11 739.12 724.7% 3.3% 164.95 2.54) -43.91 339.17 747.40 Audited FY2011 761.47 104.00 2.17 39.00 763.90 0.4% 3.21 (85.Financial Position FYE 31 December (RM million) Current assets Audited FY2010 608.7% 444.1% The bulk of short debt has been refinanced by long term debt where Naim utilised long term debt to fund long term assets and/or long gestation development projects.4% 55.46 (133.3% 177.71 125. 70 - Audited FY2011 35.86) (51.2% -441.4 million) and acquisition of property investment assets (RM30.3% -482. 5 years (RM125 million) to 10 years (RM25 million).3% -56.69 212.78) 190.57 174. The huge net financing net inflow was mainly due to successful issuance of RM300 million Islamic bonds in 2011.78 450.01) 89.0% The operating cash flow remained positive indicating cautious approaches are always adopted by Naim’s management in its business conduct in both FY2010 and FY2011.48 (50. 35 . compared to capex and acquisition of property investments assets incurred in FY2010 (RM52 million).69 (0.1 million).7% 2.30 (51.Financial Liquidity FYE 31 December (RM million) Operating cash flows Investing cash flows Financing cash flows Net increase/(decrease) in cash Cash and cash equivalents at beginning of period Effect of exchange rate changes Audited FY2010 49.10 38. The bulk of the investing cash outflow in FY2011 was due to subscription of Dayang Enterprise Holdings Bhd’s rights issue in Feb 2011 (RM43.62) (49. The risks of funding mismatch has been reduced to a lower level because a series of medium to long term bonds were issued with tenures ranging from 3 years (RM150 million). capex (RM31.01) Y-o-Y Change -28.9% n/a Cash and cash equivalents at end of period 38.5 million). 5 years (RM125 million) to 10 years (RM25 million). This is one the highest rating awarded to Naim amongst property development and construction company. 36 .Favourable Financial Ratings Tenure 3-year 5-year 10-year Issuing Date Feb 2011 Sept 2011 Sept 2011 Coupon Rate 4.15 % Total Islamic MTN Issuance Amount (RM million) 150 125 25 300 Naim has successfully issued RM300 million Islamic bonds in 2011 with a series of medium to long term bonds were issued with tenures ranging from 3 years (RM150 million).90 % 4. The RM300 million bonds has enable Naim to lock in fixed funding cost over the 3 to 5 years beside allowing Naim in using long term funding to finance its long term assets and long gestation property development project over the next 3 to 5 years.50 % 5. Naim debt securities is rated AA3 by Rating Agency Malaysia for its RM500 million Islamic Commercial Paper and Medium Term Note Issuance Programme. Segmental Breakdown Analysis 37 . 0% Audited FY2010 612.5% 63.4% 5.98 % 100.18 259.3% 1.77 279.2% 38 .44 73.23 0.0% 39.0% 0.77 30.5% 0.2% Audited FY2008 108.18 61.5% 0.99 347.65 % 100.0% 91.1% -0.94 418.0% 51.18 % 100.0% 28.16 5.10 3.53 50.03 - 55.2% 3.5% Audited FY2011 63.14 4.4% 8.75 34.0% Audited FY2009 566.85 - 39.7% 0.0% Audited FY2011 411.1% Audited FY2010 164.74 - 57.92 169.29 44.20 % 100.6% 0.9% 5.72 209.0% 26.69 162.89 117.0% 56.21 (0.49 30.0% 7.06 % 100.Segmental Contribution (1/2) FYE 31 Dec (RM million) Revenue Property Construction Any Other Biz Property Investment FYE 31 Dec (RM million) Gross Profit Property Audited FY2008 523.1% 0.0% 40.6% 68.0% 28.01 % 100.23 % 100.6% Construction Any Other Biz Property Investment 43.4% 6.97 % 100.6% 0.1% 53.8% 3.0% 44.96 48.6% Audited FY2009 129.0% 61.0% 30.94 33.57) 3.0% 74. 94 418.18 % 100.7% 1Q FY2012 Gross Profit Margin 23.2% -5.6% 68.94 33.0% 28.6% FYE 31 Dec (RM million) Gross Profit Property Audited FY2010 164.1% 0.0% 26.2% 10.44 12.8% 3.18 259.5% 43.0% 51.12 43.0% 25.5% 63.5% Audited FY2011 63.0% 0.16 42.4% 5.5% 0.04 % 100.69 162.7% 1.49 30.03 - 55.16 5.7% 45.0% 44.Segmental Contribution (2/2) FYE 31 Dec (RM million) Revenue Property Construction Any Other Biz Property Investment Audited FY2010 612.8% 28.24 1.0% 28.0% Audited FY2011 411.57) 3.82 (1.1% -0.23 0.0% 44.2% Audited 1Q FY2012 94.44 73.12) 0.3% 1.06 % 100.2% 39 .60 % 100.6% Construction Any Other Biz Property Investment 91.29 44.0% -15.70 48.89 117.20 7.98 % 100.6% Audited 1Q FY2012 22.77 30.0% 53.9% 7.21 (0.9% 5.01 % 100.0% 7. 77 61.4% 23.0% -69.9% Y-o-Y Change -38.77 91.0% Construction contracts with lower profit margin were completed in FY2011 compared to FY2010.10 15.3% 2.9% -37. Construction FYE 31 Dec (RM million) Revenue Gross Profit Gross Profit Margin Audited FY2008 279.18 44.21 10.1% 2.5% 50.94 73.1% -50.2% Audited FY2011 259.4% Audited FY2009 347.8% Y-o-Y Change 20.0% -17.2% 169.8% -19.9% -4.75 43.23 29.01 28. 70% of property sales was achieved in 2H 2011 and it is expected to contribute positively over next 2-years.1% -54.65 29.96 74.49 28. 40 .3% Audited FY2010 418.23 21.18 33.1% 162.14 21.99 50. Approx.7% 117.3% Y-o-Y Change 24. coupled with lack of new major contracts secured in 2011 resulted in lower revenue achieved in FY2011.Segmental Performance Property Development FYE 31 Dec (RM million) Revenue Gross Profit Gross Profit Margin Audited FY2008 Audited FY2009 Y-o-Y Change Audited FY2010 Y-o-Y Change Audited FY2011 Y-o-Y Change 209.2% Lower sales of property was registered in 2010 (RM145 million) resulted in lower revenue and profit were recognised in FY2011 compared to 2011 (RM219 million).0% 38.2% -28.4% 72.1% 44. 74 9.98 0.9% Y-o-Y Change -2.0% Y-o-Y Change - Property investment income was mainly derived from the rental of property held for investment during 2011.7% -99.3% -98.0% Property Investment FYE 31 Dec (RM million) Revenue Gross Profit Gross Profit Margin Audited FY2008 Audited FY2009 Y-o-Y Change Audited FY2010 Y-o-Y Change Audited FY2011 5.1% Y-o-Y Change -36.29 65.7% Y-o-Y Change 43.9% Audited FY2011 30.6% -2000.0% -2000. Sarawak in Nov 2011.06 3.97 4.20 3.Segmental Performance Any Other Businesses FYE 31 Dec (RM million) Revenue Gross Profit Gross Profit Margin Audited FY2008 34.16 (0.85 11.2% 23. 41 .57) -1.0% Audited FY2010 30.3% Audited FY2009 48. including the launch of Naim’s Hypermall Shopping Mall in Miri.1% -14.03 0. Dividend Track Record 42 . 108.207.Consistent Dividend Payout Since Listing Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total Total Net Dividend Per share (sen) 6.94% 22.00 19.00 10.09 31.64 10.930.00 8.24% 40.955.95 11.000 18.000 23.772.48 8.260.000 7.052. the dividend payout ratio has to be adjusted lower in 2009 & 2010 in view of economy recession and early recovery of economy.100.00% 26.87% 35.64 8.000 26.97% 39.25 19.39 (proforma) 27.000 24.40% 31. it has consistently rewarded its shareholders with unbreakable dividend track record since its first full financial year of 2003 until 2011.772.000 23. where Naim had set its priority to preserve its cash resources during that challenging period.65% EPS (sen) Payout Ratio Amount (Cash Outflow) 8.85 41.84 32.000 200.68 33.000 35.80 10.20 33.31 8.10% 33.694.32 35.000 15.32% 24.694.04 27. 43 . However.000 17.000 Note: Since Naim was listed in 2003. 84 10.64 10.50 12.00 12.8 10.465 21.50 12.95 8.00 5.25 22.802 21.00 7.Dividend Track Record FYE 31 Dec Tax Rate Dividend Type Interim Final Total Interim Final Total 1st Interim 2nd Interim Total 1st Interim Total 1st Interim 2nd Interim Total Gross Dividend Per share Total (RM (sen) million) 4.00 12.00 5.25 11.80 5.10 16.50 20.405 12.50 37.11 5.50 17.00 37.00 7.00 17.50 2007 27% .20 8.50 9.405 26.465 8.50 30.278 26.24 3.494 14.00 15.64 5.04 3.50 4.48 3.00 15.00 15.60 5.952 12.50 30.267 26.24 6.50 17.60 8.04 8.00 8.10 8.772 2003 28% 2004 28% 2005 28% 2006 28% 11.00 7.417 12.00 37.00 44 Net Dividend Per share Total (RM (sen) million) 3. all the subsequent dividend payout is base on tax exempt single tier dividend where gross and net dividend per share are the same.00 12.50 7.694 11.50 7.Dividend Track Record FYE 31 Dec Tax Rate Dividend Type 1st Interim 2nd Interim Total 1st Interim 2nd Interim Total 1st Interim 2nd Interim Total 1st Interim 2nd Interim Total Gross Dividend Per share Total (RM (sen) million) 6.107 7.50 12. However.00 3.50 32.75 12.847 27. the actual net dividend payout is still lower than indicative gross dividend due to Naim is exempted from paying dividend to its treasury shares.00 10.108 18.847 11.00 5.847 23.00 10.00 5.50 5.50 25.00 13.31 3.00 8. 45 .50 12.50 20.81 1.00 16.25 3.00 5.00 5.50 5.00 5.00 5.00 Net Dividend Per share Total (RM (sen) million) 4.50 1.00 3.00 5.955 11.00 8.108 11.00 8.847 7.00 12.00 5.00 8.00 11.00 11.955 2008 26% (Note) 2009 2010 2011 Note: With effect from 2008.50 20.847 18.627 11.00 3.633 3. 000 ordinary shares.22% of Naim’s issued share capital of 250.Share Buyback as Dividend Mode Available Alternative Option Preferred Options The total number of treasury shares held as at 31 Dec 2011 was 13.000.056. 46 .000 ordinary shares or approximately 5. 000 13.78 2.000 6.315 33.06 2.610 16.055.000 13.000 5.000 12.Share Buyback Track Record Year Opening Balance Purchase During the Year 1.584 15.92 2.055.499.000 13.509.62 1.055.509.000 1.66 2.748 34.469 34.000 13.96 2.000 13.272.000 5.055.026 0.66 2.06 2.000 12.546.055.748 34.96 2.000 13.000 5.748 34.66 2.600 5.055.28 4.509.055.499.705 17.400 237.66 2004 2005 2006 2007 2008 2009 2010 2011 2012 1.055.499.748 3.055.315 16.97 2.000 13.154 1.600 3.509.600 5.000.279 3.272.000 Closing Balance Cumulative Average Purchase Cost Total (RM Average Close (RM Cost per Share million) Price (RM) million) 4.000 47 .584 11.772.000 1.96 2.000 5. Shareholding Statistics 48 . Shareholding Structure 49 . Market Outlook & Prospects 50 . Brighter Prospects Moving Forward Property sales secured in 2011 is expected to contribute positively over the next 2-years Sales value in 2010 = RM145 million Sales value in 2011 = RM219 million Continue to expand into new markets and reap recurring income from investment property Property investment assets will continue to provide consistent rental incomes Plan to develop our prime land bank near Bintulu Airport over next 5 years Construction order book is expected to improve in 2012 and beyond Bidding more than RM2 billion value of projects 51 Focuses on key projects under Sarawak SCORE . Apartment & Shop lot RM40 million RM50 million RM135 million RM45 million RM80 million RM50 million RM400 million RM600 million Grand Total 52 . Terrace.Upcoming Launches of Property Projects Location and Expected Launch Period Bintulu Old Airport 4Q 2012 Type of Development Estimated GDV Street Mall RM175 million RM175 million Total Kuching/Kota Samarahan 2Q 2012 – Riveria Service Apartment RM25 million RM25 million Total Bandar Baru Permyjaya. Miri 1Q 2012 1Q 2012 2Q 2012 2Q 2012 3Q 2012 3Q & 4Q 2012 Total Semi Detached & Detached Shop lot Semi Detached. Detached & Terrace Shop lot Shop lot Semi D. Strategic Landbank & Estimated GDV Project Location Bandar Baru Permyjaya Riveria Perdana Sultan Tengah Bintulu Old Airport Batu Lintang Land Size (acres) 959 447 83 42 34 Estimated Remaining GDV (RM million) 1.527 Note: Land size and GDV are estimates only and are subject to changes.321 1.802 Pantai Piasau Residence Piasau Camp Upland Desa Ilmu & Riveria Desa Labang TOTAL 37 5 5 16 991 2.447 9. 53 .620 251 91 37 92 1.807 1.592 22 2. 0 Estimated GDV (RM million) 251 1 Pantai Piasau Residences (Miri) Piasau Camp (Miri) New Bintulu City Centre (Old Bintulu Airport) Sultan Tengah (Kuching) Bandar Baru Permyjaya (Miri) 2 3 4. hotel and residential development Residential development Township for residential accommodation and supporting amenities 54 Land Area (acres) 37. resort and marine park Mixed commercial. retail.807 .0 91 2.321 4 5 83 959 22 1.5 42.Pipeline Property Projects (Medium Term) No Property Development Projects Description Residential and commercial development Condominium. 8 33. leisure properties To be determined Land Area (acres) 83 4. condo. hotel.000 Riveria Perdana. theme park.6 Estimated GDV (RM million) To be determined To be determined 1. detached houses.447 1.9 447 5.592 To be determined 1 2 3 4 5 6 990. shopping mall. Kota Samarahan residential projects New Samalaju Township (Bintulu) Township for residential accommodation and supporting amenities 55 . Mixed development township.Pipeline Property Projects (Long Term) No Property Development Projects Desa Rampangi (Kuching) Jalan Bukitan (Kuching) Batu Lintang (Kuching) Desa Labang (Bintulu) Description To be determined Townhouses. gated and guarded Office towers. retail.802 (Over 20 years) 1. 634. 85.450 acres Land Bank – 1.000 Land Bank 1.177 ac KUCHING – Capital City Pop est.2.620 ac KOTA SAMARAHAN – Education and Medical Hub Pop est.000 acres Land Size – 642 acres TANJUNG MANIS MOU with STIDC Land Size . 209.800 Land Bank – 0 acres Current Land Bank .Strategic Location of Land Bank MIRI MOU with JINAN UNI and Panyu-Miri Smart Cities SAMALAJU MOU with CMS/BDA Land Size – 5. 300.001 ac BINTULU – Natural Gas and Palm Oil Pop est. 257.85 acres MIRI – Oil and Gas Pop est.033 acres SIBU – Timber Pop est.800 RAMBUNGAN Federal Administrative Centre Land Size – 1.500 Land Bank – 123 acres Slide 56 .495 Land Bank – 463 acres Potential Land Bank – 7. 967 199.804 2010 2015 2010 2015 Sarawak Kuching/Samarahan Sibu Bintulu Miri 531.591 61.460 152.548 89.170 69. May 2010 57 .442 70.742 53.150 77.026 80.549 168.084 6.153 Source: CH Williams Talhar Wong & Yeo Sdn Bhd.845 595.484 3.047 179.835 67.238 55.116 1.Rising Housing Units Need in Sarawak Estimated Housing Units in Sarawak by 2010 and 2015 Households Location Housing Units Average Annual Increase in Housing Units 14.730 59.618 75.133 658.586 2.850 62.505 588. iii.SCORE will generate business potential in all forms for industrial. energy. iv. construction and property. is rich in opportunity and being continuously be given special attention by the federal government. has a stable and strong state government. plantations. is one of the fastest growing states in Malaysia.Sarawak Strategic Growth Factor Sarawak growth corridor . ii. 58 . has one of the highest population growth in the country. Sarawak i. timber. plantation and natural resources development.42 million over the period of 2000 to 2010.3% for the whole of Sarawak.Long Term Growth Factor in Sarawak Sarawak has favourable population demographic where the average population growth rate is 3% ~ 4% in urban areas and 2. The domestic economic expansion will also be further boosted from the future development of SCORE besides being driven by the thriving oil & gas sector. Sarawak’s population grew from 2. 59 .01 million to 2. Urban migration is an inevitable trend which continuously post rising demand for new housing units. SCORE covers an area of 70. sustainable agriculture and Research & Development. stretching over some 320 km along the coast from Tanjung Manis to Mukah and Similajau. SCORE offers vast investment opportunities in heavy and energy intensive industries.Brief Introduction on SCORE of Sarawak SCORE is located within the Central Region of Sarawak. power sector development. 60 .708 sq km (57 % of Sarawak’s land area) with a population of 862. halal industries.100 people (36 % of the state’s population). 000MW by 2030. SCORE will feature 6 hydropower dams and 2 coal-fired power plants. SCORE allows Sarawak to price its energy competitively and encourage investment by energy-intensive industries that will trigger rapid industrial and economic development in the long run. while Murum (944MW) will start producing by 2013.Renewable Energy as Main Driving Force The driving force behind SCORE is its ability to provide large volume of lower priced renewable energy. 61 . leveraging the state’s vast hydropower potential of up to 28. Bakun (2400MW) has already commenced operation. along with setting up of new refineries and oil and gas handling facilities. power stations and infrastructure will need to be built. various factories. As at August 2011. plants.55 billion worth of investment has been confirmed through 14 mega projects in SCORE. RM28. 62 . SCORE presents huge business opportunities for Naim to support its development. A large and affluent worker population will require quality housing and bring in higher retail spending.Investments Begin Flowing Into SCORE SCORE was first launched in February 2008 and it is expected to achieve an investment target of RM334 billion over a 22-year period from 2008 to 2030. 63 .. such as Tokuyama Malaysia Sdn Bhd. the owner of Bakun Dam. More to come … Power is on . Various companies are coming to SCORE. OM Materials Sarawak Sdn Bhd.... in April 2011. Work in progress . Asia Minerals Ltd and Press Metal Bhd.More Action in Samalaju Industrial Park Bakun Dam is expected to achieve a capacity of 2400MW by 2014 to support energyintensive industries in Samalaju Industries Park in Bintulu. Sarawak Energy Berhad has signed a 30year power purchase agreement with Sarawak Hydro Sdn Bhd. 0 6.0 2.0 1.6mil tonne/year) Bintulu Samalaju Port Limbang 45mw & 200mw HEP Dam Baram 1.2 4.0 Pelagus 770mw HEP Dam Balleh 960mw HEP Dam Asia Mineral Manganese Smelter Plant OM Holdings Manganese Smelter Plant Aluminium Smelter Plant TOTAL 64 3.0 47.7 .5 6.0 Bintulu Pulp & Paper Mill (2.000mw HEP Dam 4.5 1.0 4.Potential Projects in SCORE of Sarawak Projects Tokuyama Polysilicon Plant Phase 2 Estimated Value (RM billion) 3.5 4.700 air-dry tonne/day) 600mw Balingian Coal Fired Power Plant 500kv Transmission Line (600km) Petronas LNG LNG Train 9 (3.0 4.0 4. 0b) Asia Mineral – Manganese (4.2b) Balingian Coal Fired Plant (RM2.0b) (RM4.0b) 65 .5b) (RM4.0b) (RM4.5b) LNG Train 9 (RM6.0b) Central oil distribution terminal Palm oil industrial cluster Integrated port Halal hub (RM3.0b) OM Holdings – Manganese (4.0b) Bintulu Samalaju Port (RM1.Vast Opportunities Within SCORE Region Similajau Tokuyama – Polysilicon P2 (3.0b) Press Metal – Aluminium Aluminium Smelter (RM6.0b) Bintulu Mukah Smart city R&D Tanjung Manis Pulp and Paper Mill (RM4. Analysts’ Valuations & Guidance 66 . 5 2.94 Simple Average 67.7 86.57 28 May 2012 73.88 2.1 76.7 78.9 71.6 2.5 73.80 67 .1 2.Analysts’ Valuations Date Forecast Net Forecast Net Profit FY2012 Profit FY2013 (RM million) (RM million) Target Price (RM) AmResearch TA Securities Kenanga Research 28 May 2012 28 May 2012 55. 10 (#) = Base on proforma account At the highest price of Naim at RM 6.61 2. it was traded at 3 times PER and close to 0.52 1.85 41.35 2.86 2.10 1.15 2.39 27.95 2.5 times book value base on 2008 EPS and NTA per share 68 .68 NTA/Share (RM) 1.25 19.69 1.Historical Valuation Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 EPS (sen) # 19.84 32.0 times book value base on 2007 EPS and NTA per share At the lowest price of Naim at RM 1.09 31.04 27.10 in 2008.95 Highest / Lowest Price (RM) 6.10 in 2007. it was traded at 19 times PER and close to 3.84 1.20 33.32 35. com.com. Malaysia Tel Fax Email : +6 082 411667 : +6 082 429869 : ricky.my Mobile : +6 019 8588778 Website: www. Senior Director.my 69 .naim.kho@naim. Corporate Services Naim Holdings Berhad Sublot 12.Investor Relations Contact Mr Ricky Kho. Rock Commercial Centre Jalan Green 93150 Kuching. Thank You 70 . Appendices 71 . Board of Directors Datuk Abdul Hamed Bin Haji Sepawi Chairman Sulaihah Binti Maimunni Executive Director Datu (Dr) Haji Abdul Rashid Bin Mohd Azis Independent NonExecutive Director Haji Jeli Bohari Bin Biha @ Jeli Umik Independent NonExecutive Director Professor Dato’ Abang Abdullah Bin Abang Mohamad Alli Independent NonExecutive Director Datuk Hasmi Bin Hasnan Managing Director Abang Hasni Bin Abang Hasnan Executive Director Kueh Hoi Chuang Executive Director Dato’ Ir. Abang Jemat Abang Bujang Independent NonExecutive Director Datuk Haji Hamden Bin Haji Ahmad Senior Independent Non-Executive Director 72 . Awards and Accolades 2002 Best Contractor Award 2003 The Malaysia Construction Industry Excellence Award 2004 The Malaysia Construction Industry Excellence Award Industry Excellence for Construction Award Builder Of The Year Award 2008 Property Man of The Year by FIABCI MALAYSIA 2007 Malaysia Construction Industry Excellence Award (MCIEA) 2007 Contractor Award : Grade G7 2005 KPMG Shareholder Value Award Construction & Properties Sector Corporate, Social & Environment Responsibility Award 17th International Construction & Global Quality Management Award 2009 SHEDA Excellence Awards Top Developer in Residential Development for Public Listed Group 2010 The Sarawak Chief Minister's Environmental Award 2010 73 Our Latest Achievement in 2012 Past 5-year Financial Performance FYE 31 December (RM million) Revenue Gross profit Gross profit margin Profit before tax Profit before tax margin Profit after tax Net profit attributable to shareholders Audited FY2007 Audited FY2008 Audited FY2009 Audited FY2010 Audited FY2011 411.89 63.93 15.52% 57.16 13.88% 48.15 46.63 646.02 146.72 22.71% 126.33 19.55% 80.14 76.27 31.20 523.72 108.18 20.66% 104.30 19.92% 83.07 80.75 33.32 566.92 129.53 22.85% 115.53 20.38% 84.99 84.98 35.85 612.69 164.44 26.84% 132.04 21.55% 99.91 97.75 41.25 EPS (sen) 19.68 FY2011 represents one of the lowest revenue and profitability achieved by Naim in a single financial year, comparatively from FY2007 to FY2011. 75 15 17.13 18.84 17.23 The normalised profit after tax and normalised net profit attributable to shareholders included profits from associates companies and joint ventures.81% 13.49% 40.00 39.53 22.13) 112.85% 98.47% 80.49% (0.38 17.72 5.16 Audited FY2011 411.17% 69.14% 98.72 108.92 129.02 146.67 17.75 76.66% 82.81 15.84% 109.40 14.90 84.27 Audited FY2008 523.48 97.28 3.89 63.52% 21.50 96.93 15.18 20.44 26.97 17.69 164.22 Audited FY2009 566.31% 0.27% 7. 76 .Adjustment to Financial Performance (excluded disposal effects) FYE 31 December (RM million) Revenue Gross profit Gross profit margin Operating profit (EBIT) Operating profit margin Less: Disposal gain / (loss) (non-recurring item) Normalised operating profit Normalised operating profit margin Normalised profit after tax Normalised net profit attributable to shareholders Audited FY2007 646.96 13.23% 84.85 68.72 22.40 66.71% 112.51 Audited FY2010 612.85% 1.75 111. 03 321.09 130.37) 587.40 20.47 104.18 2.61 250 2.99 250 All the Net Assets/Share were calculated based on share capital of 250.12 49.32 2.91 339.32 0.11 739.90) 652.12 (0.21 (85.00 763.08 141.49 558.0 million ordinary shares for year-on-year comparison purpose.88 0.86 Audited FY2009 387.79 140.05 3.09 347.26 0.15 54.16 250 2.71 125.53 50.00 674.27 761.09 42. 77 .09 57.14 670.11 Audited FY2010 446.45 213.10 (50.17 39.35 250 2.65 2.91 618.60 539.21 90.49 611.26 615.00 Audited FY2008 340.44 57.23 608.46 0.02 5.Summary of Financial Position FYE 31 December (RM million) Non-current assets Current assets Current liabilities Audited FY2007 288.90 250 2.40 245.54) 747.90) 724.46 (133.09 93. of shares (gross) (mil) Note: 2.36 2.66 286.95 Audited FY2011 527.43 7.92 10.50 0.96 0.21 Current ratio (times) Short term debt Long term debt Total debt Total equity Total debt/Total equity (times) Cash reserve Net cash Shareholders' Funds Net assets/Share(RM) (Note) No.01 291. 30 (51.88 49.38 57.48 (50.70 38.01) 89.71 (88.78 78 .57) (34.38 Audited FY2008 73.10 38.70 Audited FY2010 124.60 35.01) 212.12 Audited FY2009 104.02 8.57 174.83) 47.88 (14.83) (3.98) 120.05 63.86) (51.36 91.58 57.56) (13.12 89.Summary of Cash Flow Results FYE 31 December (RM million) Operating profit/(loss) before working capital changes Net cash flows from/(used in) operating activities Net cash flows from/(used in) investing activities Net cash flows from/(used in) financing activities Net increase/(decrease in) cash and cash equivalent Cash and cash equivalent at beginning of period Effect of exchange rate Cash and cash equivalent at end of period Audited FY2007 118.25) 91.69 (0.78) 190.87) (28.37 (1.56) (28.62) (49.98 32.69 Audited FY2011 22.