naim presentation slides - 8 july 2012

7/30/2019 Naim Presentation Slides - 8 July 2012

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Corporate Presentation


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Disclaimer

2

Information contained in our presentation is intended solely for your personal referenceand 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 companys 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 companys 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

Companys management under any circumstances.


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Table of Contents

3

Financial Results Analysis

Segmental Breakdown Analysis

Dividend Track Record

Shareholding Statistics

Market Outlook & Prospects

Analysts Valuations

Brief Corporate Profile

Overall Financial Performance


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Briefing Corporate Profile

4


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Introduction to Naim Holdings Berhad

5

Naim Cendera Holdings Berhad (NAIM CENDERA) was incorporated on 5 July 2002 andsubsequently listed on the Main Board of Bursa Malaysia Securities Berhad on 12

September 2003. Its name was changed from Naim Cendera Holdings Berhad to NaimHoldings Berhad (NAIM) in March 2009 and is listed on the Main Market of BursaMalaysia Securities Berhad under the Property Sector.

Naim is the holding company of Naim Land Sdn Bhd (NLSB) (formerly known as NaimCendera Sdn Bhd). NLSB was formed on 12 April 1993 and has been active in property

development and construction since September 1995.

Naim is a Class A Bumiputera Contractor with ISO 9001 Certification. And also an

approved licensed contractor for major construction and civil works, including the supply of

machinery and equipment to Petronas and its production sharing contract partners. Naim

focuses its business efforts on 3 principal areas as follows:

Integrated property

developer based in

Sarawak with projects

covering Kuching, Miri

and Bintulu.

Contracting of

construction, civil

engineering, oil and

gas; and infrastructure

projects.

Oil and gas servicesthrough its 34%

shareholding

investment in Dayang

Enterprise Holdings

Berhad


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Group Structure (by Business Segment)

6

Property

Construction

OtherBusinesses

Oil and Gas

Property Investment

Engineering &Construction

Manufacturing, QuarryOperations, Trading &

Services

Via AssociateDayang Enterprise

Holdings Bhd

Property Development


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In a Nutshell

8

Developed more than 16,000 units of residential, commercial and industrialproperties throughout Sarawak valued at more than RM 2.5 billion.

Accumulated remaining land bank of 2,620 acres strategically located withestimated future GDV of RM9.5 billion.

Has potential to develop commercial and other properties worth more thanRM 3.0 billion in Kuching, Bintulu and Miri for injection into Real EstateInvestment Trusts (REIT) in future.

Naim first investment property, Permy Mall with lettable floorarea of 153,000 sq ft, was completed in December 201. It iscurrently 94% tenanted and generating a gross return of 12%.


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Past 11-year Property Sales Value & Units

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Naims Core Competitive Strengths

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Long track record inbuilding townships,e.g. Bandar BaruPermyjaya in Miri,

Desa Ilmu andRiveria in Kuching.

Low holding cost forthe bulk of landbank owned byNaim as some

received aspayment in kindfrom completed

construction jobs.

This provides

greater flexibility inthe timing forlaunching Naimsproperty projects

based on prevailingmarket demand.


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Overview of On-going Projects

11

Property DevelopmentProjects Year ofLaunch Completed GDVin FY2010 Completed GDVin FY2011

Remaining GDV

as at 01.01.2012(RM million)

Bandar Baru Permyjaya (Miri) 1995 1,242 1,355 2,000

Desa Ilmu (Kota Samarahan) 2000 438 467 0*

Riveria (Kuching) 2005 191 233 112

TOTAL 1,871 2,055 2,112

* Note: Development is at tail-end.

Property DevelopmentProjects

FY2010 FY2011

Units

Sales

Value

Unbilled

Sales Units

Sales

Value

Unbilled

Sales

Bandar Baru Permyjaya 429 122 41 329 113 104

Desa Ilmu 35 6 8 116 29 43

Riveria 29 14 7 104 42 29

TOTAL 493 142 56 549 184 176

Gross Development Value (Unit: RM million)

Properties Sold (Unit: RM million)


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Overview of On-going Projects

12

Take-Up Rate of New Sales Launches (for Residential and Commercial Units) (Unit: RM million)

Property DevelopmentProjects

FY2010 FY2011

UnitsLaunched

Take-upRate

Sales Value(RM mil)

UnitsLaunched

Take-upRate

Sales Value(RM mil)

Bandar Baru Permyjaya 162 67% 28 417 92% 132

Desa Ilmu 122 31% 7 108 56% 16

Riveria 6 100% 3 108 98% 42

TOTAL 290 50% 37 633 190


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Property Investment


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Completed properties

Creation of Real Estate Investment Trusts

14

The 2-storey Miri Permy Mall was completed on 28 October 2011. At present, 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 andland is RM85.0 million and RM3.6 million respectively as at 31 December 2011.

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 275,000

sq ft and lettable floor area of 153,000 sq ft.

Naim

Holdings

Naim REIT(future plan)

Set up property

investment arm

Permy Mall, Miri

Retain a proportion of futureproperties to rent

Own & operate

rental properties

Batu Lintang

Pantai PiasauResidences

Piasau Camp

Bintulu CityCentre

To launch a

REIT when

property

investment

assets has

reached

sufficient size


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Construction


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Construction Track Record

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Completed Contracts by

Client Base

Total Contract Value

(RM 000)

Federal Contracts 1,621,940

State Contracts 1,235,448

Others Contracts 433,936

TOTAL 3,291,324

Note: The contracts above do not include construction of NAIMs own

property developments estimated at RM2.5 billion.


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17

Track Record and Order Book

Has completed more than RM 3.0 billion worth of construction contracts, all

delivered on time or ahead of schedule within specifications and budget.

Note: The above percentage is based on total 30 completed projects undertaken from January1997to March 2012.

30%

70%

Past Projects Completion Performance

Ahead of Schedule On Schedule


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Construction Order Book

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Contracts by ClientBase

Order Book Value

(RM million)

Value To Run

(RM million)

Federal 1,845.3 1,678.9

State 483.3 279.7

Others 339.1 148.2

Overseas 154.8 96.8

TOTAL 2,822.5 2,203.6

Current order book will sustain earnings growth for next 2 to 3 years.

Does not include projects currently bidding for.

Successful bids to sustain order book and earnings beyond 2014.

Note:i. Order book includes RM1,602 million with firm contracts and RM1,221 million at LOI stage. Given

our track record and past experience of 100% conversion to LOAs, we are very confident that these

LOIs will become firm orders, although this cannot be guaranteed. LOI values stated are estimates

only and are subject to change.

ii. Order Book reflects Naims share only. Share of JV subject to ongoing discussion with JV partners.


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Notable Past Completed Projects

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Project ClientContract Value

(RM million)Completion

Date

Institut Kemahiran Belia, Miri FederalGovernment

98.0 May 2002

Upgrading of Sibu Bintulu Road Federal

Government

73.0 (Phase1)

96.1 (Phase2)

Nov 2004

Dec 2004

Low-Cost Housing for HDC, Miri State

Government

279.5 May 2005

Kolej Sains Kesihatan Bersekutu, Kuching Federal

Government

70.7 May 2005

Institut Latihan Perindustrian, Miri Federal

Government

76.0 (Phase1)

33.0 (Phase2)

Dec 2005

Dec 2006

Police General Operations Force Camp,

KuchingFederal

Government

313.0 Feb 2008

Kompleks CIQ, Limbang Federal

Government

37.5 July 2008

Sarawak State Legislative AssemblyComplex, Kuching

StateGovernment

296.5 May 2009

Affordable Housing Project at Desa Ilmu,

KuchingSPNB 90.8 April 2009


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Notable Past Completed Projects

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Project ClientContract Value

(RM million)Completion

Date

Maktab Rendah Sains Mara, Mukah FederalGovernment

48.0 May 2009

Upgrading of Sibu Julau Road JKR 176.5 June 2010

Kuching Flood Mitigation Project

(Phase 1)Federal

Government

148.8 Feb 2010

Affordable Housing Project SPNB 281.0 March 2010

Bakun-Similajau Transmission Line

(Package A)SESCO 228.8 July 2010

Selangau Matadeng Road State

Government

202.0 April 2011

Upgrading of Kings Road, Fiji Fiji

Government

56.1 Aug 2011

8 National Schools and Hostels Ministry of

Education

63.7 Oct 2011

Bakun-Similajau Transmission Line

(Package B)SESCO 104.6 Sept 2011

Bengoh Dam, Kuching State

Government

310.1 Dec 2011


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Notable On-going Construction Projects

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Project Client

Contract Value(RM million)

Duration

TotalValue to Run(1 Apr 2012)

StartTargetEnding

Affordable Housing Projects SPNB 560.46 451.80 Aug 2007 Mar 2014

Sabah Oil and Gas Terminal

(SOGT)Petronas

Carigali

244.40 119.75 Aug 2010 Feb 2014

Rehabilitation & Maintenance

of Fiji National HighwayFiji

Government

142.76 84.72 Mar 2010 Dec 2012

Bengoh Dam Resettlement

SchemeState

Government

179.60 74.53 Oct 2010 Jan 2013

Complex Islam Majlis Islam

Sarawak

94.64 28.40 Apr 2009 Sep 2012

Murum Dam Resettlement

SchemeState

Government

197.17 197.17 Aug 2012 Aug 2013

Jalan Kampung Semadang/

BauState

Government

67.65 3.30 July 2009 Aug 2012

TOTAL 1,486.82 959.67


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Investment in

Dayang Enterprise Holdings Bhd

22


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Operating exclusively in Sabah & Sarawak over the

last 20 years

Brief Introduction on Dayang

23

Dayangs Valued Proposition to Naim

Naim is the single largest shareholder in Dayang with 184.95 million shares

(representing 33.6 % shareholding from Dayang share capital of 550 million)

Leading O&G MaintenanceServices Provider

5 Workboats (incl. 1 under construction) and 2 supplyvessels

Over 20 OSV under investee (Perdana Petroleum)

Strong OperationalAsset Base

RM1.4 billion (or outstanding order book of RM1.4billion - 6x revenue) mid Feb 2012

RecordOrder Book Size

RM802 mil contract win in Feb 2011

RM125 mil contract win in Feb 2012 from Talisman

Earnings VisibilityReaffirmed

Cash pile of over RM260 million & low gearing (0.11x)

PAT margin of 25% is higher than peers average of

11.6%

Strong Financials andMargin


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Dayang: Current Order Book (as at 15 Feb 2012)

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* Note: Estimates only.

OriginalValue *

(RM mil)

Description

BalanceContract

Value *(RM mil)

ContractCompletion

Date

Managements Estimationfor Completion (RM mil)

2011 2012

802 Petronas Carigali: TopsideStructural Maintenance

680 Feb 2016 120 160

150 Petronas Carigali: IntegratedMinor Maintenance (IMM)

0 Dec 2011 30 -

500 Petronas Carigali: Hook-up and

commissioning

100 Mar 2012 100 100

150 Murphy Sabah: Topside MajorMaintenance

80 Nov 2012 45 45

80 Brunei Shell Petroleum: Charterof Dayang Zamrud

80 Feb 2013

plus 2 yrs

20 20

400 Sarawak Shell & Sabah Shell:

Topside Maintenance Contract

300 Mar 2015

plus 1 yr

60 80

125 Talisman Topside MaintenanceContract

125 - - 60

- NEW Workboat Dayang Topaz - - - 20

2,207 Balance Contract Value 1,365 375 485

Almost 1.5 times of FYE2010srevenue of RM255 mil


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Dayang Past Financial Performance

25

0.000

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

2007 2008#

2009 2010 2011

127.134

181.128

196.954

255.385

382.323

RMm

illion

Revenue

0.000

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

2007 2008#

2009 2010 2011

28.852

71.444

44.785

67.731

83.129

RMm

illion

Profit After Tax

Note (#): For illustrative purposes, 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. 2008 financial performance is base on 15 months period results instead of 12 months.


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Corporate Developments in FY 2011

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Bonus Issue (1:4)

completed to rewardshareholders Leading OSV charter in Malaysia

Over 20 OSVs, including 15 AHTs, 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 Dayangs leading

position in the O&G offshore

maintenance support industry

Secured TSM LOA

from Carigali worth

RM802 millionRights Issue (1:4)

oversubscribed

Secured contract

extension from Murphy,estimated to be additional

RM100 million

Investment in Perdana

Petroleum Bhd

Feb Oct Dec

2011 2012

Mar


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Overall Past Financial Performance

27


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Uninterrupted Financial Profitability

28

Since Naim was listed on Bursa Malaysia in 2003, it has never suffered losses in any single

financial year while journeying through various economic cycles and slowdown.

0.000

10.000

20.000

30.000

40.000

50.00060.000

70.000

80.000

90.000

100.000

2003 2004 2005 2006 2007 2008 2009 2010 2011

48.483

69.495

79.145

66.229

76.27480.747

84.981

97.750

46.628

RMm

illio

n

Net Profit Attributable to Shareholders


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Consistent Growth of Shareholder Funds

29

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.

0.000

100.000

200.000

300.000

400.000500.000

600.000

700.000

800.000

2003 2004 2005 2006 2007 2008 2009 2010 2011

352.228400.087

459.499489.816

539.318

587.651

652.263724.015

747.182

RMm

illio

n

Shareholder Funds


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FY2011 & 1Q FY2012 Financial Results

Analysis

30


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Executive Summary on FY2011 Results

31

Operating cash flowsremained positive in

FY2011 and sharp

increase in financing net

inflow after issuance of

Islamic bonds

Naim is financially

(balance sheet) well

positioned ahead of any

economic slowdown in

2012 and beyond

Naims gearing positionis manageable and

ready to seize new

business opportunities

by leveraging on its

RM200m cash reserves

Income from associates

and joint venturescontributed significantly

to the Groups overall

profitability

Naim achieved one of

the lowest revenue &profitability levels in

FY2011 compared to

past 5-year financial

performance


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Y-o-Y Financial Performance

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FYE 31 December(RM million)

AuditedFY2010

AuditedFY2011

Y-o-YChange

Revenue 612.69 411.89 -32.8%

Gross profit 164.44 63.93 -61.1%

Gross profit margin 26.84% 15.52% n/a

Profit before tax 132.04 57.16 -56.7%

Profit before tax margin 21.55% 13.88% n/a

Profit after tax 99.91 48.15 -51.8%

Net profit attributable to shareholders 97.75 46.63 -52.3%

EPS (sen) 41.25 19.68 -52.3%

Overall, lower revenue was recognised by the property division and lower contract was

completed by construction division in FY2011, compared to FY2010.

Correspondently, lower profitability was recognised by both property and construction division

in FY2011, compared to FY2010. However, higher profitability contributed by joint ventures

(RM12.8 million) and from associate Dayang Enterprise (RM28.6 million) helped to uplift

overall PBT of the Group.


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Quarter-on-quarter Financial Performance

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Quarterly Period

(RM million)

1Q FY2011 2Q FY2011 3Q FY2011 4Q FY2011 1Q FY2012

Revenue 120.90 103.49 94.39 93.11 94.16

Gross profit 22.54 14.89 8.17 18.33 22.44

Gross profit margin 18.64% 14.39% 8.66% 19.80% 23.83%

Operating profit (EBIT) 8.12 13.49 (0.63) 0.74 11.89

Operating profit margin 6.72% 13.04% (0.67%) 0.77% 12.63%

Profit before tax 16.94 21.55 12.56 6.11 22.98

Profit before tax margin 14.01% 20.82% 13.30% 6.93% 24.41%

Profit after tax 12.95 19.09 9.87 6.24 16.86

Net profit attributable to

shareholders12.23 19.16 10.25 4.99 16.08

EPS (sen) 5.16 8.09 4.33 2.10 6.79


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Financial Position

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AuditedFY2010

AuditedFY2011

Y-o-YChange

Current assets 608.40 761.79 25.2%Current liabilities 245.95 140.21 -43.0%Current ratio (times) 2.47 5.43 119.8%Short term debt 104.40 7.91 -92.4%Long term debt 20.71 339.09 1537.3%Total debt 125.11 347.00 177.4%Total equity (including MI) 739.46 763.50 3.3%Total debt to total equity ratio 0.17 0.45 164.7%Cash reserves 39.21 213.46 444.4%Net cash / (net debt) (85.90) (133.54) 55.5%Net debt to total equity ratio 0.12 0.17 41.7%Shareholders funds

724.02 747.18 3.2%Number of shares (gross) 250.00 250.00 0.0%Net assets per share (RM) 2.90 2.99 3.1%

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, after Naim

successfully issued RM300 million Islamic Bonds in 2011.


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Financial Liquidity

35


AuditedFY2010

AuditedFY2011

Y-o-YChange

Operating cash flows 49.48 35.30 -28.7%Investing cash flows (50.62) (51.78) 2.3%Financing cash flows (49.86) 190.57 -482.2%Net increase/(decrease) in cash (51.01) 174.10 -441.3%Cash and cash equivalents at beginning of period 89.70 38.69 -56.9%Effect of exchange rate changes - (0.01) n/aCash and cash equivalents at end of period 38.69 212.78 450.0%

The operating cash flow remained positive indicating cautious approaches are always adopted by

Naims management in its business conduct in both FY2010 and FY2011.

The bulk of the investing cash outflow in FY2011 was due to subscription of Dayang Enterprise

Holdings Bhds rights issue in Feb 2011 (RM43.5 million), capex (RM31.4 million) and acquisition of

property investment assets (RM30.1 million); compared to capex and acquisition of property

investments assets incurred in FY2010 (RM52 million).

The huge net financing net inflow was mainly due to successful issuance of RM300 million Islamic

bonds in 2011. 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), 5 years

(RM125 million) to 10 years (RM25 million).


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Favourable Financial Ratings

36

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), 5 years (RM125 million) to 10 years (RM25 million).

Naim debt securities is rated AA3 by Rating Agency Malaysia for its RM500 million Islamic

Commercial Paper and Medium Term Note Issuance Programme. This is one the highest

rating awarded to Naim amongst property development and construction company.

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.

Tenure Issuing Date Coupon RateIslamic MTN IssuanceAmount (RM million)

3-year Feb 2011 4.90 % 150

5-year Sept 2011 4.50 % 125

10-year Sept 2011 5.15 % 25

Total 300


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37

Segmental Breakdown Analysis


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Segmental Contribution (1/2)

38

FYE 31 Dec(RM million)

AuditedFY2008

%AuditedFY2009

%AuditedFY2010

%AuditedFY2011

%

Revenue 523.72 100.0% 566.92 100.0% 612.69 100.0% 411.89 100.0%Property 209.77 40.1% 169.99 30.0% 162.94 26.6% 117.18 28.5%Construction 279.75 53.4% 347.96 61.4% 418.77 68.4% 259.49 63.0%

Any Other Biz 34.20 6.5% 48.97 8.6% 30.98 5.1% 30.16 7.3%PropertyInvestment - 0.0% - 0.0% - 0.0% 5.06 1.2%


AuditedFY2008

%AuditedFY2009

%AuditedFY2010

%AuditedFY2011

%

Gross Profit 108.18 100.0% 129.53 100.0% 164.44 100.0% 63.94 100.0%Property 61.23 56.6% 50.65 39.1% 73.18 44.5% 33.01 51.6%Construction 43.10 39.8% 74.14 57.2% 91.23 55.5% 28.21 44.1%

Any Other Biz 3.85 3.6% 4.74 3.7% 0.03 0.0% (0.57) -0.9%Property

Investment - 0.0% - 0.0% - 0.0% 3.29 5.2%

S l C ib i ( )


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Segmental Contribution (2/2)

39


AuditedFY2010

%AuditedFY2011

%Audited 1Q

FY2012%

Revenue 612.69 100.0% 411.89 100.0% 94.16 100.0%Property 162.94 26.6% 117.18 28.5% 42.12 44.7%Construction 418.77 68.4% 259.49 63.0% 43.20 45.9%

Any Other Biz 30.98 5.1% 30.16 7.3% 7.24 7.7%PropertyInvestment - 0.0% 5.06 1.2% 1.60 1.7%


AuditedFY2010

%AuditedFY2011

%Audited 1Q

FY2012%

1Q FY2012Gross Profit

Margin

Gross Profit 164.44 100.0% 63.94 100.0% 22.44 100.0% 23.8%Property 73.18 44.5% 33.01 51.6% 12.04 53.6% 28.6%Construction 91.23 55.5% 28.21 44.1% 10.82 48.2% 25.0%

Any Other Biz 0.03 0.0% (0.57) -0.9% (1.12) -5.0% -15.5%Property

Investment - 0.0% 3.29 5.2% 0.70 3.2% 43.8%

S l P f


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Segmental Performance

40


AuditedFY2008

AuditedFY2009

Y-o-YChange

AuditedFY2010

Y-o-YChange

AuditedFY2011

Y-o-YChange

Revenue 209.77 169.99 -19.0% 162.94 -4.1% 117.18 -28.1%Gross Profit 61.23 50.65 -17.3% 73.18 44.5% 33.01 -54.9%Gross Profit Margin 29.2% 29.8% 2.1% 44.9% 50.7% 28.2% -37.2%



AuditedFY2008

AuditedFY2009

Y-o-YChange

AuditedFY2010

Y-o-YChange

AuditedFY2011

Y-o-YChange

Revenue 279.75 347.96 24.4% 418.77 20.4% 259.49 -38.0%Gross Profit 43.10 74.14 72.0% 91.23 23.1% 28.21 -69.1%Gross Profit Margin 15.4% 21.3% 38.3% 21.8% 2.2% 10.9% -50.0%

Construction

Construction contracts with lower profit margin were completed in FY2011 compared to FY2010, coupled with

lack of new major contracts secured in 2011 resulted in lower revenue achieved in FY2011.

Lower sales of property was registered in 2010 (RM145 million) resulted in lower revenue and profit wererecognised in FY2011 compared to 2011 (RM219 million). Approx. 70% of property sales was achieved in 2H

2011 and it is expected to contribute positively over next 2-years.

S l P f


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Segmental Performance

41


AuditedFY2008

AuditedFY2009

Y-o-YChange

AuditedFY2010

Y-o-YChange

AuditedFY2011

Y-o-YChange

Revenue 34.20 48.97 43.2% 30.98 -36.7% 30.16 -2.6%Gross Profit 3.85 4.74 23.1% 0.03 -99.3% (0.57) -2000.0%Gross Profit Margin 11.3% 9.7% -14.0% 0.1% -98.9% -1.9% -2000.0%

Any Other Businesses


AuditedFY2008

AuditedFY2009

Y-o-YChange

AuditedFY2010

Y-o-YChange

AuditedFY2011

Y-o-YChange

Revenue - - - - - 5.06 -Gross Profit - - - - - 3.29 -Gross Profit Margin - - - - - 65.0% -

Property Investment

Property investment income was mainly derived from the rental of property held for investment during 2011,

including the launch ofNaims Hypermall Shopping Mall in Miri, Sarawak in Nov 2011.


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42

C i t t Di id d P t Si Li ti


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Consistent Dividend Payout Since Listing

43

Note: Since Naim was listed in 2003, it has consistently rewarded its shareholders with

unbreakable dividend track record since its first full financial year of 2003 until 2011. However,

the dividend payout ratio has to be adjusted lower in 2009 & 2010 in view of economy

recession and early recovery of economy, where Naim had set its priority to preserve its cash

resources during that challenging period.

Year Total Net Dividend EPS (sen) Payout Ratio Amount

Per share (sen) (Cash Outflow)2003 6.48 19.39 (proforma) 33.40% 8,100,000

2004 8.64 27.84 31.00% 17,052,000

2005 8.64 32.04 26.97% 24,930,000

2006 10.80 27.09 39.87% 35,207,000

2007 10.95 31.20 35.10% 26,772,000

2008 11.31 33.32 33.94% 15,260,000

2009 8.00 35.85 22.32% 18,955,000

2010 10.00 41.25 24.24% 23,694,000

2011 8.00 19.68 40.65% 23,694,000

2012 7,108,000

Total 200,772,000

Di id d T k R d


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44


FYE 31 Dec Tax Rate Dividend Gross Dividend Net DividendType Per share

(sen)Total (RMmillion)

Per share(sen)

Total (RMmillion)

2003 28% Interim 4.50 11.25 3.24 8.10

Final 4.50 11.25 3.24 8.10

Total 9.00 22.50 6.48 16.20

2004 28% Interim 5.00 12.50 3.60 8.952

Final 7.00 17.50 5.04 12.465Total 12.00 30.00 8.64 21.417

2005 28% 1st Interim 7.00 17.50 5.04 12.465

2nd Interim 5.00 12.50 3.60 8.802

Total 12.00 30.00 8.64 21.267

2006 28% 1st Interim 15.00 37.50 10.8 26.405

Total 15.00 37.50 10.80 26.405

2007 27% 1st Interim 7.00 17.50 5.11 12.494

2nd Interim 8.00 20.00 5.84 14.278

Total 15.00 37.50 10.95 26.772

Di id d T k R d


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45


FYE 31 Dec Tax Rate Dividend Gross Dividend Net DividendType Per share

(sen)

Total (RM

million)

Per share

(sen)

Total (RM

million)

2008 26% 1st Interim 6.50 16.25 4.81 11.633

(Note) 1.50 3.75 1.50 3.627

2nd Interim 5.00 12.50 5.00 11.847

Total 13.00 32.50 11.31 27.107

2009 1st Interim 3.00 7.50 3.00 7.1082nd Interim 5.00 12.50 5.00 11.847

Total 8.00 20.00 8.00 18.955

2010 1st Interim 5.00 12.50 5.00 11.847

2nd Interim 5.00 12.50 5.00 11.847

Total 10.00 25.00 10.00 23.694

2011 1st Interim 5.00 12.50 5.00 11.847

2nd Interim 3.00 7.50 3.00 7.108

Total 8.00 20.00 8.00 18.955

Note: With effect from 2008, all the subsequent dividend payout is base on tax exempt single tier dividend

where gross and net dividend per share are the same. However, the actual net dividend payout is still lower

than indicative gross dividend due to Naim is exempted from paying dividend to its treasury shares.

Sh B b k Di id d M d


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46

Share Buyback as Dividend Mode

The total number of treasury

shares held as at 31 Dec

2011 was 13,056,000 ordinary

shares or approximately

5.22% ofNaims issued share

capital of 250,000,000

ordinary shares.

PreferredOptions

AvailableAlternative Option

Sh B b k T k R d


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47

Share Buyback Track Record

Year OpeningBalance

PurchaseDuring the

Year

ClosingBalance

Purchase Cost CumulativeClose (RM

million)

AverageCost per

Share

Total (RM

million)

Average

Price (RM)

2004 - 1,499,600 1,499,600 4.584 3.06 4.584 3.06

2005 1,499,600 3,772,400 5,272,000 11.026 2.92 15.610 2.96

2006 5,272,000 237,000 5,509,000 0.705 2.97 16.315 2.96

2007 5,509,000 - 5,509,000 - - 16.315 2.96

2008 5,509,000 6,546,000 12,055,000 17.154 2.62 33.469 2.78

2009 12,055,000 1,000,000 13,055,000 1.279 1.28 34.748 2.66

2010 13,055,000 - 13,055,000 - - 34.748 2.66

2011 13,055,000 - 13,055,000 - - 34.748 2.66

2012 13,055,000 13,055,000 - 34.748 2.66


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Shareholding Statistics

48

Shareholding Structure


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Shareholding Structure

49


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Market Outlook & Prospects

50

Brighter Prospects Moving Forward


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51

Brighter Prospects Moving Forward

Construction order book is expected to improve in 2012 and beyond

Bidding more than RM2 billion value ofprojects

Focuses on key projects under SarawakSCORE

Continue to expand into new markets and reap recurring income frominvestment property

Property investment assets will continueto provide consistent rental incomes

Plan to develop our prime land banknear Bintulu Airport over next 5 years

Property sales secured in 2011 is expected to contribute positively over thenext 2-years

Sales value in 2010 = RM145 million Sales value in 2011 = RM219 million

Upcoming Launches of Property Projects


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Upcoming Launches of Property Projects

52

Location and ExpectedLaunch Period

Type of Development Estimated GDV

Bintulu Old Airport

4Q 2012 Street Mall RM175 million

Total RM175 million

Kuching/Kota Samarahan

2Q 2012 Riveria Service Apartment RM25 million

Total RM25 millionBandar Baru Permyjaya,Miri

1Q 2012 Semi Detached & Detached RM40 million

1Q 2012 Shop lot RM50 million

2Q 2012 Semi Detached, Detached & Terrace RM135 million

2Q 2012 Shop lot RM45 million3Q 2012 Shop lot RM80 million

3Q & 4Q 2012 Semi D, Terrace, Apartment & Shop lot RM50 million

Total RM400 million

Grand Total RM600 million

Strategic Landbank & Estimated GDV


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Strategic Landbank & Estimated GDV

53

Project LocationLand Size

(acres)Estimated Remaining GDV

(RM million)

Bandar Baru Permyjaya 959 1,807Riveria Perdana 447 1,592Sultan Tengah 83 22Bintulu Old Airport 42 2,321Batu Lintang 34 1,802Pantai Piasau Residence 37 251Piasau Camp 5 91Upland 5 37Desa Ilmu & Riveria 16 92Desa Labang 991 1,447TOTAL 2,620 9,527

Note: Land size and GDV are estimates only and are subject to changes.

Pipeline Property Projects (Medium Term)


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Pipeline Property Projects (Medium Term)

54

No

Property

DevelopmentProjects

Description

Land

Area(acres)

Estimated

GDV(RM million)

1 Pantai Piasau

Residences (Miri)

Residential and commercial

development

37.0 251

2 Piasau Camp

(Miri)

Condominium, resort and

marine park

4.5 91

3 New Bintulu City

Centre

(Old Bintulu Airport)

Mixed commercial, retail,

hotel and residential

development

42.0 2,321

4 Sultan Tengah(Kuching) Residential development 83 22

5 Bandar Baru

Permyjaya (Miri)

Township for residential

accommodation and

supporting amenities

959 1,807

Pipeline Property Projects (Long Term)


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Pipeline Property Projects (Long Term)

55

NoProperty

Development

Projects

DescriptionLandArea

(acres)

EstimatedGDV

(RM million)1 Desa Rampangi

(Kuching)

To be determined 83 To be

determined

2 Jalan Bukitan

(Kuching)

Townhouses, detached

houses, gated and guarded

4.8 To be

determined

3 Batu Lintang

(Kuching)

Office towers, shopping mall,

condo, hotel, theme park,

retail, leisure properties

33.6 1,802

(Over 20 years)

4 Desa Labang

(Bintulu)

To be determined 990.9 1,447

5 Riveria Perdana,Kota Samarahan

Mixed development township,residential projects

447 1,592

6 New Samalaju

Township (Bintulu)

Township for residential

accommodation and

supporting amenities

5,000 To be

determined

Strategic Location of Land Bank


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TANJUNG MANISMOU with STIDC

Land Size - 85 acres

SAMALAJUMOU with CMS/BDA

Land Size 5,000 acres

MIRIMOU with JINAN UNI andPanyu-Miri Smart Cities

Land Size 642 acres

Potential Land Bank 7,177 ac

RAMBUNGANFederal AdministrativeCentre

Land Size 1,450 acres

MIRI Oil and GasPop est. 300,000

Land Bank 1,001 ac

BINTULU Natural Gas andPalm OilPop est. 209,800

Land Bank 1,033 acres

KOTA SAMARAHANEducation and Medical HubPop est. 85,495

Land Bank 463 acres

Current Land Bank - 2,620 acKUCHING Capital CityPop est. 634,500

Land Bank 123 acres

SIBU Timber

Pop est. 257,800Land Bank 0 acres

Slide 56

Strategic Location of Land Bank

Rising Housing Units Need in Sarawak


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Location

Households Housing Units AverageAnnual

Increase inHousing

Units

2010 2015 2010 2015

Sarawak 531,460 595,047 588,549 658,967 14,084

Kuching/Samarahan 152,238 179,850 168,591 199,170 6,116

Sibu 55,742 62,442 61,730 69,150 1,484

Bintulu 53,835 70,026 59,618 77,548 3,586

Miri 67,845 80,505 75,133 89,153 2,804

Rising Housing Units Need in Sarawak

57

Estimated Housing Units in Sarawak by 2010 and 2015

Source: CH Williams Talhar Wong & Yeo Sdn Bhd. May 2010

Sarawak Strategic Growth Factor


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58

Sarawak Strategic Growth Factor

Sarawak growth corridor - SCORE

will generate business potential in allforms for industrial, plantations,energy, construction and property.

Sarawak

i. is one of the fastest growingstates in Malaysia;

ii. has a stable and strong stategovernment;

iii. has one of the highest populationgrowth in the country;

iv. is rich in opportunity and beingcontinuously be given specialattention by the federal government.

Long Term Growth Factor in Sarawak


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Long Term Growth Factor in Sarawak

59

Sarawak has favourable populationdemographic where the average

population growth rate is 3% ~ 4% inurban areas and 2.3% for the whole ofSarawak.

Sarawaks population grew from 2.01

million to 2.42 million over the period of2000 to 2010. Urban migration is aninevitable trend which continuously postrising demand for new housing units.

The domestic economic expansion willalso be further boosted from the futuredevelopment of SCORE besides beingdriven by the thriving oil & gas sector,timber, plantation and natural resourcesdevelopment.

Brief Introduction on SCORE of Sarawak


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Brief Introduction on SCORE of Sarawak

60

SCORE is located within the Central

Region of Sarawak, stretching over some320 km along the coast from TanjungManis to Mukah and Similajau.

SCORE covers an area of 70,708 sq km

(57 % of Sarawaks land area) with apopulation of 862,100 people (36 % of thestates population).

SCORE offers vast investment

opportunities in heavy and energyintensive industries, power sectordevelopment, halal industries,sustainable agriculture and Research &Development.

Renewable Energy as Main Driving Force


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Renewable Energy as Main Driving Force

61

The driving force behind SCORE is itsability to provide large volume of lowerpriced renewable energy, leveraging thestates vast hydropower potential of up to28,000MW by 2030.

SCORE allows Sarawak to price itsenergy competitively and encourageinvestment by energy-intensive industriesthat will trigger rapid industrial andeconomic development in the long run.

SCORE will feature 6 hydropower damsand 2 coal-fired power plants. Bakun(2400MW) has already commencedoperation, while Murum (944MW) willstart producing by 2013.

Investments Begin Flowing Into SCORE


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Investments Begin Flowing Into SCORE

62

SCORE was first launched in February2008 and it is expected to achieve an

investment target of RM334 billion over a22-year period from 2008 to 2030.

As at August 2011, RM28.55 billion worthof investment has been confirmed through

14 mega projects in SCORE.

SCORE presents huge businessopportunities for Naim to support itsdevelopment. A large and affluent workerpopulation will require quality housingand bring in higher retail spending;various factories, plants, power stationsand infrastructure will need to be built,along with setting up of new refineriesand oil and gas handling facilities.

More Action in Samalaju Industrial Park


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More Action in Samalaju Industrial Park

63

P

owerison

... Bakun Dam is

expected toachieve acapacity of2400MW by2014 tosupportenergy-intensiveindustries inSamalajuIndustriesPark inBintulu.

Work

inprogress

... Sarawak

EnergyBerhad hassigned a 30-year powerpurchaseagreementwith SarawakHydro SdnBhd, theowner ofBakun Dam,in April 2011.

Mo

retocome

Various

companiesare coming toSCORE, suchas TokuyamaMalaysia SdnBhd, OMMaterialsSarawak SdnBhd, AsiaMinerals Ltdand PressMetal Bhd.

Potential Projects in SCORE of Sarawak


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Potential Projects in SCORE of Sarawak

64

Projects Estimated Value (RM billion)

Tokuyama Polysilicon Plant Phase 2 3.0

Bintulu Pulp & Paper Mill (2,700 air-dry tonne/day) 4.0

600mw Balingian Coal Fired Power Plant 2.5

500kv Transmission Line (600km) 1.5

Petronas LNG LNG Train 9 (3.6mil tonne/year) 6.0

Bintulu Samalaju Port 1.2

Limbang 45mw & 200mw HEP Dam 4.0

Baram 1,000mw HEP Dam 4.0

Pelagus 770mw HEP Dam 3.5

Balleh 960mw HEP Dam 4.0

Asia Mineral Manganese Smelter Plant 4.0

OM Holdings Manganese Smelter Plant 4.0

Aluminium Smelter Plant 6.0

TOTAL 47.7

Vast Opportunities Within SCORE Region


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Vast Opportunities Within SCORE Region

65

Similajau

Tokuyama Polysilicon P2 (3.0b)

Asia Mineral Manganese (4.0b)

OM Holdings Manganese (4.0b)Press Metal Aluminium

Aluminium Smelter (RM6.0b)Bintulu

Pulp and Paper Mill (RM4.0b)

Bintulu Samalaju Port (RM1.2b)

Balingian Coal Fired Plant (RM2.5b)

LNG Train 9 (RM6.0b)

Tanjung Manis

Central oil distribution terminal

Palm oil industrial cluster

Integrated port

Halal hub

Mukah

Smart city

R&D

(RM4.0b)

(RM4.0b)

(RM3.5b)

(RM4.0b)


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Analysts Valuations & Guidance

66

Analysts Valuations


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Analysts Valuations

67

Date

Forecast Net

Profit FY2012(RM million)

Forecast Net

Profit FY2013(RM million)

Target

Price(RM)

AmResearch 28 May 2012 55.5 71.1 2.88

TA Securities 28 May 2012 73.9 76.5 2.57

Kenanga

Research28 May 2012 73.7 86.6 2.94

Simple Average 67.7 78.1 2.80

Historical Valuation


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Historical Valuation

68

Year EPS (sen) NTA/Share (RM) Highest / Lowest Price (RM)

2003 # 19.39 1.522004 27.84 1.69

2005 32.04 1.84

2006 27.09 1.95

2007 31.20 2.15 6.10

2008 33.32 2.35 1.10

2009 35.85 2.61

2010 41.25 2.86

2011 19.68 2.95

(#) = Base on proforma account

At the highest price of Naim at RM 6.10 in 2007, it was traded at 19 times PER and close to

3.0 times book value base on 2007 EPS and NTA per share

At the lowest price of Naim at RM 1.10 in 2008, it was traded at 3 times PER and close to

0.5 times book value base on 2008 EPS and NTA per share

Investor Relations Contact


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69

Investor Relations Contact

Mr Ricky Kho,

Senior Director, Corporate Services

Naim Holdings Berhad

Sublot 12, Rock Commercial Centre

Jalan Green 93150 Kuching, Malaysia

Tel : +6 082 411667

Fax : +6 082 429869

Mobile : +6 019 8588778

Email : [email protected]

Website: www.naim.com.my


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Thank You

70


71/78

Appendices

71

Board of Directors
http://www.naim.com.my/bod/datuk_hamed.html?height=450&width=680http://www.naim.com.my/bod/haji_jeli.html?height=480&width=730http://www.naim.com.my/bod/abdul_rashid.html?height=450&width=730http://www.naim.com.my/bod/haji_hamden.html?height=450&width=730http://www.naim.com.my/bod/abang_jemat.html?height=500&width=680http://www.naim.com.my/bod/abang_hasni.html?height=470&width=730http://www.naim.com.my/bod/sulaihah.html?height=470&width=730http://www.naim.com.my/bod/kueh_hoi_chuang.html?height=470&width=730http://www.naim.com.my/bod/dato_william.html?height=470&width=730http://www.naim.com.my/bod/datuk_hasmi.html?height=470&width=730


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Board of Directors

72

Datuk Abdul HamedBin Haji SepawiChairman

Datuk Hasmi BinHasnanManaging Director

Kueh Hoi ChuangExecutive Director

Sulaihah BintiMaimunniExecutive Director

Abang Hasni BinAbang HasnanExecutive Director

Dato Ir. AbangJemat AbangBujangIndependent Non-

Executive Director

Datuk Haji HamdenBin Haji AhmadSenior Independent

Non-Executive Director

Datu (Dr) Haji AbdulRashid Bin Mohd AzisIndependent Non-

Executive Director

Haji Jeli Bohari BinBiha @ Jeli UmikIndependent Non-

Executive Director

Professor Dato AbangAbdullah Bin AbangMohamad AlliIndependent Non-

Executive Director

Awards and Accolades


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Awards and Accolades

73

2004

200520072008

20102009

The MalaysiaConstruction IndustryExcellence Award

The Malaysia ConstructionIndustry Excellence Award

Industry Excellence for

Construction AwardBuilder Of The Year Award

Malaysia ConstructionIndustry Excellence Award(MCIEA) 2007 ContractorAward : Grade G7

Property Man ofThe Year byFIABCI MALAYSIA

SHEDA ExcellenceAwardsTop Developer inResidential Development

for Public Listed Group

The Sarawak ChiefMinister'sEnvironmentalAward 2010

2002 2003

Best ContractorAward

KPMG Shareholder ValueAward Construction &Properties Sector

Corporate, Social &Environment ResponsibilityAward

17th InternationalConstruction & GlobalQuality Management Award

Our Latest Achievement in 2012


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Ou atest c e e e t 0

Past 5-year Financial Performance


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y

75


AuditedFY2007

AuditedFY2008

AuditedFY2009

AuditedFY2010

AuditedFY2011

Revenue 646.02 523.72 566.92 612.69 411.89

Gross profit 146.72 108.18 129.53 164.44 63.93


Profit before tax 126.33 104.30 115.53 132.04 57.16

Profit before tax margin 19.55% 19.92% 20.38% 21.55% 13.88%

Profit after tax 80.14 83.07 84.99 99.91 48.15

Net profit attributable toshareholders

76.27 80.75 84.98 97.75 46.63

EPS (sen) 31.20 33.32 35.85 41.25 19.68

FY2011 represents one of the lowest revenue and profitability achieved by Naim in a single

financial year, comparatively from FY2007 to FY2011.

Adjustment to Financial Performance(excluded disposal effects)


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(excluded disposal effects)

76


AuditedFY2007

AuditedFY2008

AuditedFY2009

AuditedFY2010

AuditedFY2011

Revenue 646.02 523.72 566.92 612.69 411.89

Gross profit 146.72 108.18 129.53 164.44 63.93


Operating profit (EBIT) 112.97 82.81 98.15 109.38 21.72

Operating profit margin 17.49% 15.81% 17.31% 17.85% 5.27%

Less: Disposal gain / (loss)

(non-recurring item) (0.13) 13.85 0.48 1.75 7.40

Normalised operating profit 112.84 68.96 97.67 111.13 14.28

Normalised operating profit

margin 17.47% 13.17% 17.23% 18.14% 3.49%

Normalised profit after tax 80.27 69.22 84.51 98.16 40.75

Normalised net profit attributable

to shareholders 76.40 66.90 84.50 96.00 39.23

The normalised profit after tax and normalised net profit attributable to shareholders included profits

from associates companies and joint ventures.

Summary of Financial Position


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y

77


AuditedFY2007

AuditedFY2008

AuditedFY2009

AuditedFY2010

AuditedFY2011

Non-current assets 288.91 340.26 387.14 446.23 527.27

Current assets 618.01 615.66 670.03 608.40 761.79

Current liabilities 291.00 286.86 321.11 245.95 140.21

Current ratio (times) 2.12 2.15 2.09 2.47 5.43

Short term debt 49.96 54.05 130.92 104.40 7.91

Long term debt 0.53 3.44 10.08 20.71 339.09Total debt 50.49 57.49 141.00 125.11 347.00

Total equity 558.26 611.88 674.32 739.46 763.50

Total debt/Total equity (times) 0.09 0.09 0.21 0.17 0.45

Cash reserve 93.09 57.12 90.10 39.21 213.46

Net cash 42.60 (0.37) (50.90) (85.90) (133.54)

Shareholders' Funds 539.32 587.65 652.36 724.02 747.18

Net assets/Share(RM) (Note) 2.16 2.35 2.61 2.90 2.99

No. of shares (gross) (mil) 250 250 250 250 250

Note: All the Net Assets/Share were calculated based on share capital of 250.0 million ordinary shares for year-on-year

comparison purpose.

Summary of Cash Flow Results


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y


AuditedFY2007

AuditedFY2008

AuditedFY2009

AuditedFY2010

AuditedFY2011

Operating profit/(loss) before

working capital changes118.05 73.02 104.37 124.88 22.60

Net cash flows from/(used in)

operating activities63.71 8.88 (1.56) 49.48 35.30


investing activities

(88.83) (14.56) (13.83) (50.62) (51.78)


financing activities(3.87) (28.57) 47.98 (49.86) 190.57

Net increase/(decrease in) cash

and cash equivalent(28.98) (34.25) 32.58 (51.01) 174.10

Cash and cash equivalent at

beginning of period120.36 91.38 57.12 89.70 38.69

Effect of exchange rate - - - - (0.01)

Cash and cash equivalent atend of period

91.38 57.12 89.70 38.69 212.78

naim presentation slides - 8 july 2012

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