PUNCAK NIAGA HOLDINGS BERHAD

PUNCAK NIAGA HOLDINGS BERHAD

PUNCAK NIAGA HOLDINGS BERHAD Group Financial Position 31 December 2013 2

Group Financial Performance Financial Highlights Financial Statements Status of Bonds Stock Performance Dividend 3

Group Financial Highlights Revenue (RM Bil) Net Profit * (RM Mil) Earnings / Share (sen) 1.56 259.4 63.40 1.15 200.5 49.02 '13 '12 * Attributable to Owners '13 '12 '13 '12 4

Group Financial Highlights Gearing (ratio %) Total Assets (RM Bil) Net Assets / Share (RM) 49 54 4.65 4.25 4.34 3.87 '13 '12 '13 '12 '13 '12 5

Group Income Statement 2013 * 2012 Change RM Mil RM Mil RM Mil s Revenue Service Concession 566 561 +5 Oil and Gas 455 778-323 Construction 126 224-98 1,147 1,563-416 Other Income 250 202 +48 Raw mat, consumables & (130) (134) -4 maintenance Construction expenses (139) (198) -59 Cost of providing oil & gas (380) (609) -229 Staff cost (169) (172) -3 Other expenses (167) (141) +26 Depn & amortization expenses (25) (21) +4 Total Cost (1,010) (1,275) -265 Profit from operations 387 490-103 Share of results of Joint Ventures (14) (13) +1 Finance cost (137) (152) -15 Taxation (36) (67) -31 Net Profit / (Loss) (RM' Mil) 200 258-58 Earnings per share (sen) 49.02 63.40-14.38 * Restated (MFRS Convergence and MFRS 10 Deconsol Syabas) 6

Contribution By Segment Water Treatment Oil & Gas Construction Group Total Syabas 2013 RM' Mil RM' Mil RM' Mil RM' Mil RM' Mil Revenue/Other Income 766.3 482.9 125.7 1,397.8 3,213.0 Segment Results 428.6 (30.3) (13.3) 373.7 671.5 2012 Revenue/Other Income 740.8 781.0 223.6 1,765.0 2,904.2 Segment Results * 380.4 83.9 25.4 477.3 624.5 * Note : Segment result = EBIT 7

Group Balance Sheet * Restated (MFRS Convergence and MFRS 10 Deconsol Syabas) 8 2013 * 2012 Changes RM Mil RM Mil RM Mil Assets Property, Plant & Equipment 426 420 +6 Operating Financial Assets 842 907-65 Service Concession Assets 85 68 +17 Trade & other receivables 2,437 2130 +307 Deposits, Cash & Bank bal 672 640 +32 Goodwill 26 25 +1 Other Assets 158 57 +101 Total Assets 4,646 4,247 +399 Liabilities Borrowings 2,054 1,935 +119 Trade and Other Payables 340 374-34 Deferred Tax Liabilities 475 262 +213 Other Liabilities 3 93-90 Total Liabilities 2,872 2,664 +208 Shareholder s Equity (RM' Mil) 1,777 1,584 +193 Net Asset per share (RM) 4.34 3.87 +0.47

Group Cash Flows Statement 2013 *2012 Changes RM Mil RM Mil RM Mil Net Cash From Operating activities 107 104 +3 Cash Used In Investing activities (33) (77) -44 Service Concession Assets Purchase of property, plant & equip Cash Used In Financing activities (114) (120) -6 Interest, loans repayment Net decrease in cash & cash equivalents (40) (93) -53 Opening cash balance 384 421-37 Transfer from DSRA 191 53 +138 Exchange differences 4 2 +2 Cash & bank balance pledged 133 66 +68 DSRA 191-191 Cash & cash equivalent at year end 672 640 +33 * Restated (MFRS Convergence and MFRS 10 Deconsol Syabas) 9

MFRS 10 Deconsolidation of SYABAS 10

MFRS 10 Deconsolidation of SYABAS MFRS 10 Consolidated Financial Statements (wef 1 January 2013) Define controls as Investor has the following: Power over investee Exposure / rights to variable returns Ability to use its power to affect the amount of investor s return. Under SYABAS shareholder s agreement, the following activities required favourable vote from 1 director of PNHB and 1 director of KDEB. Creation of security over SYABAS assets Approval of annual business plan & budget Capital expenditure > RM5 mil Borrowings > RM5 mil PNHB does not have practical ability to unilaterally direct the relevant activities of SYABAS, but has joint control since 2005. Result in Deconsolidation of SYABAS, apply equity accounting. * Note 42 : Significant Changes in Accounting Policies 11

Investment in JV - SYABAS Income Statement 2013 2012 Changes RM Mil RM Mil RM Mil Revenue Sales of Treated Water 1,671 1,598 +73 Tariff Compensation 1,069 1,024 +45 Construction 227 119 +108 2,967 2,741 +226 Other Income 246 202 +44 Raw mat, consumables & maintenance (1,590) (1,571) +19 Cost of rehabilitation works (212) (110) +102 Staff cost (194) (180) +14 Other expenses (299) (251) +48 Depn & amortization expenses (247) (214) +33 Profit from operations 671 617 +54 Finance cost (762) (632) +130 Taxation (7) 8 +15 Net Profit / (Loss) (RM' Mil) (98) (7) -91 Loss per share (RM) (1.51) (0.11) +1.4 12

Investment In JV SYABAS Balance Sheet 2013 2012 Changes RM Mil RM Mil RM Mil Assets Property, Plant & Equipment 39 42-3 Service Concession Assets 7,752 7,715 +37 Trade & other receivables 3,369 2,403 +966 Deposits, Cash & Bank bal 1,025 935 +90 DSRA 105 65 +40 Other Assets 609 621-12 Total Assets 12,899 11,781 +1,118 Liabilities Borrowings 4,452 4,268 +184 Trade and Other Payables 5,819 4,518 +1,301 Service Concession 4,642 4,914-272 Obligations Other Liabilities 27 23 +4 Total Liabilities 14,940 13,723 +1,217 Shareholder s Equity (RM' Mil) (2,042) (1,943) -99 Net Liability per share (RM) (31.42) (29.89) -1.52 13

Trade & Other Receivables PNHB Group (Deconsol Syabas) SYABAS Due From : 2013 2012 2013 RM Mil RM Mil RM Mil SYABAS PNSB *1,995.2 *1,533.5 - Serba Tiara PNSB *176 *244.1 - Trade debtors POG Grp 37.5 68.2 - Contract customers POG Grp 187.9 237.2 - State Government - Tariff compensation Syabas - - 3,095.8 State Government - Free water Syabas - - 27.3 Consumer / Collection agencies Syabas - - 227.6 Others 41.1 47.0 18.8 Total Trade & Other Receivables 2,437.7 2,130.0 3,369.5 * Note: After net off allowance for impairment / fair value adjustment 14

Tariff Compensation Tariff Compensation Claims Submitted to State Government 2013 RM' mil Jan to Dec 2009 471.6 Jan to Dec 2010 481.4 Jan to Dec 2011 510.1 Jan to Dec 2012 1,023.9 Jan to Dec 2013 1,069.4 Submitted as at 31 Dec 2013 3,556.4 Jan to Mar 2014 227.1 Submitted upto Q1 2014 3,783.5 15

Amount Due To Water Treatment Operators Outstanding @ 31 Dec 2013 Principal Interest Total RM Mil RM Mil RM Mil SPLASH 2,011.8 266.9 2,278.7 ABASS 634.7 83.2 717.9 PNSB 1,766.0 334.6 2,100.6 KASB 23.8 0.6 24.4 Total 4,436.3 685.3 5,121.6 * Interest @ BLR + 1% to 2% 16

Loans & Borrowings Company Loan / Bond Book Value Due in 2014 RM Mil RM Mil PNSB - Al-Bai Bithaman Ajil Bonds ( BAIDS ) 1,016.60 - - Junior Notes A ( JNA ) 213.1 - - Redeemable Unsecured Bonds ( RUBs ) 462.9 7.7 - Government Support Loan 32.1 - Sukuk 136.7 POG & SINO - Working Capital & Term Loan 192.2 26.2 Total PNHB Group 2,053.60 33.9 SYABAS - Bai Bithaman Ajil Medium Term Notes ( BAMTN ) 2,072.30 510 - Government Support Loan 428.1 - - Term Loan & HP 661.4 0.5 - RCULS 208.2 2.2 - Redeemable Preference Shares (RPS) 713.5 Total SYABAS 4,083.50 512.7 Grand Total 6,137.10 546.6 PNSB : Bonds restructured in April 2013, maturity extended to October 2016. SYABAS : Negotiation with AQUA SPV ongoing, BAMTN of RM310 mil & RM200 mil tranche due for repayment in Sep 2014. 17

Stock Performance 250.0 2013 2014 RM 3.50 200.0 3.00 150.0 2.50 100.0 2.00 50.0 1.50 0.0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Volume ('mil) 12.9 34.0 65.1 111.3 72.6 65.9 218.8 74.1 95.1 55.2 36.1 34.9 37.9 45.7 53.0 22.4 18.3 Price 1.21 1.29 1.47 1.76 1.79 1.89 2.48 2.66 3.00 3.24 3.37 3.33 3.13 3.22 3.06 2.93 2.96 1.00 18

Analysts views Research Co Views Target price 1 CIMB Research Buy RM4.28 2 Kenanga Research Buy RM4.30 3 Affin Research Buy RM3.55 4 Am Research Hold RM3.40 5 MIDF Research Neutral RM4.44 Average RM3.99 * RM3.65 (24/6/2014) EPS : 49.02 sen PE Ratio : 7.4 times 19

Proposed Dividend YE 2012: Final tax exempt dividend of 5 sen per ordinary share (total RM20.5 million) paid on 6 August 2013. YE 2013: No dividend is proposed or declared for the financial year ended 2013, and no interim dividend proposed for 1 st quarter 2014, pending completion of the proposed disposal of water concession business. 20

THANK YOU 21