BATU KAWAN BERHAD

Investor Presentation

30-Jan-2013

2BATU KAWAN BERHAD

Company Background Batu Kawan Berhad (“BKB”) is an investment holding company with

subsidiaries and associates involved in chemical manufacturing, logistics, plantations, property investment and investment holding

Incorporated in Malaysia in 1965 Commenced operations as a plantations company when it took over the assets

and liabilities of its predecessor company, Batu Kawan Rubber and Coconuts Plantations Ltd in 1971

Listed on the Bursa Malaysia Main Market since 12 October 1971 Market capitalisation of RM7.6 billion(1)

(1) Market data as at 29-Jan-2013

3BATU KAWAN BERHAD

Company Overview

Malay-Sino Chemical Industries Sdn Bhd (86%)• Chlor-alkali products,

methyl chloride, ferric chloride

See Sen Chemical Berhad (61%)• Sulphuric acid, oleum,

aluminium sulphate, sodium silicate

Kuala Lumpur Kepong Berhad (46.57% Associate)• Produce and process palm products and natural

rubber, oleochemical, property development• 251,325ha landbank – 212,300ha planted

PT Satu Sembilan Delapan (92%)• Plantation development in Kalimantan, Indonesia• 5,728ha landbank – 3,602ha planted

Collingwood Plantations (18% Investment)• Plantation development in Papua New Guinea• 44,342ha landbank for oil palm plantations

Menara KLK (100%)• 11-storey

commercial building in Mutiara Damansara, Petaling Jaya

Other investments

Note: % denotes BKB’s shareholding percentage

BATU KAWAN BERHAD

Plantations Chemicals Others

4BATU KAWAN BERHAD

Kuala Lumpur Kepong Berhad Kuala Lumpur Kepong Berhad (“KLK”) is an 46.57% associate company of

BKB Primary operations are in the production and processing of palm products

and natural rubber on its plantations located in Peninsular Malaysia, Sabah and Indonesia

Total landbank of 251,325ha 193,230ha planted with oil palm and 19,070ha planted with rubber

Downstream operations include refineries & fractionation, oleochemicals Others: Property development, Synthomer plc (19.45%)

Listed on the Bursa Malaysia Main Market since 1974 Market capitalisation of RM23.5 billion (1)

(1) Market data as at 29-Jan-2012

5BATU KAWAN BERHAD

KLK Financial SummaryRevenue

7,855 6,658

7,491

10,743 10,570

0

3,000

6,000

9,000

12,000

FY08 FY09 FY10 FY11 FY12

(RM million)

EPS and DPS (Net)

Profit Before Tax

1,445

887

1,383

2,066

1,560

0

400

800

1,200

1,600

2,000

2,400

FY08 FY09 FY10 FY11 FY12

(RM million)

98

58

95

148

114

55 40

60

85 65

0

40

80

120

160

FY08 FY09 FY10 FY11 FY12

(Sen)

Return on Equity

18.8

10.9

16.9

22.2

17.0

0

5

10

15

20

25

FY08 FY09 FY10 FY11 FY12

(%)

6BATU KAWAN BERHAD

PT Satu Sembilan Delapan PT Satu Sembilan Delapan is BKB’s 92% owned

Indonesian subsidiary involved in oil palm plantation development in East Kalimantan

Total landbank of 5,728ha – 3,602ha planted FY2012 results

Revenue: RM33.5 million Operating results: RM14.9 million Profit per average mature area: RM4,830 per ha

Oil Palm Planted Area

844 1,868

2,516 3,087

25371559

911515

0

1,000

2,000

3,000

4,000

FY09 FY10 FY11 FY12

Mature Immature

(hectare)

FFB Yield

3.5

14.5 16.3

18.4

0

5

10

15

20

FY09 FY10 FY11 FY12

(mt/ha)

7BATU KAWAN BERHAD

Collingwood Plantations In October 2011, BKB acquired 18% of Collingwood Plantations Pte Ltd

(“CPPL”) along with KLK with a 51% stake Purchase price for BKB’s 18% stake was RM9.8 million A wholly-owned CPPL subsidiary owns leases to 44,342 ha of land in Papua

New Guinea which will be developed into oil palm plantations A long term development leveraging on the overseas plantation

development expertise and resources of KLK

8BATU KAWAN BERHAD

BKB Chemical Group Malay-Sino Chemical Industries (86%)

(industrial chemical manufacturing) Malay-Sino Agro-Chemical Products (industrial

chemical manufacturing) Circular Agency / North-South Transport

(chemical logistics)

See Sen Chemical Berhad (61%) (industrial chemical manufacturing)

BASF See Sen (30% owned by SSCB*) (specialty chemical manufacturing)

* BKB’s effective shareholding is 18%

BKB’s Chemical Group recorded FY2012 revenues of RM294.9 million and operating profits of RM48.9 million

9BATU KAWAN BERHAD

Malay-Sino Chemical Industries MSCI is a subsidiary of BKB (86% shareholding) Incorporated in 1973 Largest producer of chlor-alkali chemical products in

Malaysia Chlor-alkali products: chlorine, caustic soda (sodium

hydroxide), hydrochloric acid, bleach (sodium hypochlorite) Other products: ferric chloride, ferric 200M, calcium chloride

Annual capacity of 87,000 metric tonnes of 100% caustic soda

MSCI operates 2 chemical manufacturing plants Location: Lahat (Perak) and Kemaman (Terengganu)

Malay-Sino Agro-Chemical Products (100% owned subsidiary of MSCI) is one of the largest methyl chloride producer in South East Asia Location: Lahat (Perak) Vertically integrated with MSCI’s Lahat plant

10BATU KAWAN BERHAD

Logistics Circular Agency and North-South

Transport (100% owned subsidiaries of MSCI) provides the BKB Chemical Group with its own in-house specialist chemical transporter Vertically integrated logistics Circular Agency provides bulk tanker

transportation North-South Transport provides bulk lorry

transportation

11BATU KAWAN BERHAD

See Sen Chemical Berhad SSCB is a subsidiary of BKB (61% shareholding) Incorporated in 1965 Largest producer of sulphuric acid in Malaysia

Products: sulphuric acid, oleum, dilute sulphuric acid, solid and liquid aluminium sulphate, sodium silicate, liquid sulphur, sulphur powder

Annual capacity of 245,000 metric tonnes sulphuric acid

SSCB operates 2 chemical manufacturing plants Location: Pasir Gudang (Johor) and Kemaman

(Terengganu) BASF See Sen (30% associate of SSCB)

produces high purity sulphuric acid for the electronics industry Location: Kemaman (Terengganu) Vertically integrated with SSCB’s Kemaman plant Joint-venture partner is BASF (70%), the world’s

leading chemical company

12BATU KAWAN BERHAD

Menara KLK Menara KLK is owned by Batu Kawan Holdings Sdn Bhd (100% owned subsidiary) Completed in March 2009, Menara KLK is a 11-storey commercial office building with a 4-

storey podium and a 2-level basement car park Located in Mutiara Damansara, Petaling Jaya next to Tesco, Ikea, The Curve, Ikano

Power Centre and Cineleisure Damansara Occupancy rate(1) of 95%; KLK is the anchor tenant of the building FY2012 rental income of RM6.3 million and operating profit of RM3.3 million

(1) As at 30-Sep-2012

Tenants

13BATU KAWAN BERHAD

BKB Financial SummaryOperating Profit

38

66

103

55 63

0

20

40

60

80

100

120

FY08 FY09 FY10 FY11 FY12

(RM million)

Share of Results of Associates

Profit Before Tax

523

351

573

785

626

0

200

400

600

800

1,000

FY08 FY09 FY10 FY11 FY12

(RM million)

Return on Shareholders’ Equity

18.1

11.6

18.1 21.2

16.3

0

5

10

15

20

25

FY08 FY09 FY10 FY11 FY12

485

285

471

732

564

0

200

400

600

800

FY08 FY09 FY10 FY11 FY12

(%)

(RM million)

14BATU KAWAN BERHAD

Dividends and Shareholders’ Equity

2.8 2.9 3.1

3.7 3.8 6.5 6.8 7.5

8.8 9.0

0.0

2.0

4.0

6.0

8.0

10.0

1.01.52.02.53.03.54.0

FY08 FY09 FY10 FY11 FY12Shareholders' Equity Net Assets per Share

(RM billion)

Shareholders’ Equity and Net Assets per Share

117.3 79.2

134.2

186.5 145.3

57.9 40.0

65.0 95.0

65.0

0

50

100

150

200

FY08 FY09 FY10 FY11 FY12EPS DPS (Net)

(Sen)

Earnings per Share and Dividends per Share (Net)

(RM / Share)

BATU KAWAN BERHAD

Thank You