3Q FY2018 Results BriefingPos Malaysia Berhad

POS MALAYSIA 2

Disclaimer

Sections of this presentation may contain forward-looking statements andinformation. Such statements are based on Management’s current expectations andcertain assumptions, and are, therefore, subject to uncertainties. A variety of factors,many of which are beyond Pos Malaysia’s control, affect our operations, performance,business strategy and results and may cause the actual results, performance orachievements of Pos Malaysia to be materially different from any future results,performance or achievements that may be expressed or implied by such forward-looking statements.

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Financial Highlights

POS MALAYSIA 4

YTD FY2018 Performance: 26% Revenue Growth due to Higher Contribution from Logistics & Aviation Segments

Higher revenue contribution by the courierbusiness segment of RM50 million y-o-y due tohigher volumes of items delivered.

Higher contribution of RM520 million fromLogistics and Aviation business segments covering9 months contribution for 9M FY2018 (ascompared to 3 months for 9M FY2017).

Higher Revenue due to:

1,2841,447

1,820

YTD FY2016 YTD FY2017 YTD FY2018

42% 26%

RM million

POS MALAYSIA 5

68

107

89

YTD FY2016 YTD FY2017 YTD FY2018

RM million

31% (17%) OPEX increased by RM387 million y-o-y primarilydue to higher staff costs and transportation costs inthe 9 months under review.

Staff costs comprised 45% of OPEX andtransportation costs made up another 30%.

Lower PBT due to:

YTD FY2018 Performance: Higher OPEX Resulted in 17% Y-O-Y PBT Decline

571 539

511 561

130 12493

31676

20466

75

YTD FY2017 YTD FY2018

Others

Aviation

Logistics

International

Courier andParcelPostal Services

POS MALAYSIA 6

YTD FY2018 Performance: Courier Revenue Continued to Grow Y-O-YRM million

Substantial increase in Logistics & Aviationrevenues is due to accounting treatment. Revenuefrom Logistics & Aviation for YTD FY2018 covered 9months consolidation vis-à-vis YTD FY2017 thatcovered 3 months consolidation.

Higher Pos Laju revenue driven by 56 million itemsdelivered during the 9-months period (17% growthy-o-y). The main source of this growth was fromour corporate e-Commerce customers during the11.11 Sale & 12.12 Sale. Our campaigns &promotions conducted during the period managedto generate almost 14 million delivered itemsamong the walk-in customers.

Revenue contribution:

1,447 1,820

POS MALAYSIA 7

YTD FY2018 Performance: All Segments Profitable Save for Postal Services

(114)

121 7 2 26 22

559 546 124 338 267 75

33 ^ 71 *

Postal Services Courier and Parcel International Logistics Aviation Others

REVENUE RM MIL

OPERATING PROFIT RM MIL

Incl. Interco-trans of RM192m

^International Mail*International Courier

592 617

POS MALAYSIA 8

Balance Sheet Remained Solid

Cash Position RM mil

As at Dec

2017

As at Sep

2017

Variance

%

Cash & Bank Balances 334 279 20

Deposits with licensed banks and other financial institutions

227 347 (35)

Deposits, Cash & Bank Balances

561 626 (10)

Less:

Collections held on behalf of agencies

(69) (55) 25

Deposit pledged (1) (1) -

Bank Overdraft (2) (2) -

Cash & Cash Equivalents 488 567 (14)

Statement of Financial Position RM mil

As at Dec

2017

As at Sep

2017

Variance

%

Non-Current Assets 1,835 1,675 10

Current Assets 1,531 1,570 (2)

Total Assets 3,366 3,245 4

Current Liabilities 1,202 1,212 (1)

Non-Current Liabilities 246 125 97

Total Liabilities 1,449 1,337 8

Share Capital 1,071 1,071

Reserves 844 834

Total Equity 1,917 1,907 1

Total Equity & Liabilities 3,366 3,245 4

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Financial Highlights

POS MALAYSIA 101. Sources: Ecommerce Foundation- Global B2C E-commerce Report 20162. Ecommerce Infographic

China, 34%

Japan, 5%South Korea, 3%

USA, 26%

UK, 8%

France, 3%

Germany, 3%

Canada, 2%

India, 1%

Russia, 1%

Rest of the world, 15%

China dominated Global e-Commerce Sales

$1,057 bilGrowth rate:

28%

Asia Pacific1

$644 bilGrowth rate:

13%

North America2

$505 bilGrowth rate:

13%

Europe3

$33 bilGrowth rate:

28%

Latin America4

$26 bilGrowth rate:

19%

MENA5

$8 bilGrowth rate:

23%

Others6

• Alibaba makes China the largest e-Commerce economy• China has 721 mil internet users & it is 52% of China’s population• Has 300 mil customers per year - equal to the entire US population• Owns Lazada which is the largest e-Commerce market place in SEA

Global e-Commerce Growth Provide Opportunities >50% of Global e-Commerce Sales are From APAC

POS MALAYSIA 11Sources: ATKearney Project E3

China, Japan and South Korea are Attractive MarketsHighest Cross Border Volumes

81363

309 10 5

86

14

109 4 3

899

77

40

18 14 8

CN JP SK AU SEA NZ

Domestic

Cross Border

(2016, $ billions)

28% 4% 7% 10% 27% 8%

e-Commerce Market Growth

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Financial Highlights