INVESTOR PRESENTATION

PRESENTATION CONTENTS

1. Corporate Information

2 O i2. Operations

3. Financials

4. Business Outlook

5. Share Valuation

6 S6. Summary

MAJOR SHAREHOLDERS

N o . S h a r e s S h a r e3 0 - N o v - 0 7

S h a r e h o l d e r s

(AS AT NOVEMBER 30, 2007)

( M i l l i o n ) h o l d i n g

M e l e w a r I n d u s t r i a l G r o u p B h d 9 7 . 5 0 5 4 . 5 %

M e l e w a r E q u i t i e s ( B V I ) L t d 9 . 3 4 5 . 2 %

M a l a y s i a n A s s u r a n c e A l l i a n c e B h d 5 . 5 0 3 . 1 %

G 1 1 2 3 4 6 2 8 %M e le w a r G r o u p 1 1 2 .3 4 6 2 .8 %P N B 5 . 4 5 3 . 0 %

G r o u p & G o v t F u n d s 1 1 7 7 9 6 5 8 %G r o u p & G o v t F u n d s 1 1 7 .7 9 6 5 .8 %

F o r e i g n S h a r e h o l d i n g 5 . 6 0 3 . 1 %

B a l a n c e F r e e F l o a t 5 5 . 6 1 3 1 . 1 %

T o t a l P a i d U p C a p i t a l 1 7 9 . 0 0 1 0 0 . 0 %

BOARD OF DIRECTORS

Seated from left to right :Tunku Dato’ Ya’acob bin Tunku Abdullah(Non Independent Non Executive Director)

Standing from right to left:Chan Sang Whye (Resigned, April 2007)(Executive Director / Chief Operating Officer)(Non-Independent Non-Executive Director)

Tunku Dato’ Seri Iskandar bin Tunku Abdullah(Non-Independent Non-Executive Chairman)

Azlan bin Abdullah

Dato’ Zulkifly @ Sofi bin Haji Mustapha(Non-Independent Non-Executive Director)

Dato’ Abu Talib bin Mohamed(Independent Non-Executive Director)

(Executive Director / Chief Executive Officer)

Lim Kim Chuan(Non-Independent Non-Executive Director)

Dato’ Narendrakumar Jasani a/l Chunilai Rugnath(Independent Non-Executive Director)

Paul Chan Wan Siew(Independent Non-Executive Director)

SENIOR MANAGEMENT STAFF

Azlan bin AbdullahEducation :• BSc (Buss Admin) -Trinity Univ USA

SENIOR MANAGEMENT STAFF

Azlan bin AbdullahChief Executive Officer

BSc (Buss Admin) Trinity Univ, USA• MBA – Morehead State Univ, USAExperience :• 13 years in senior banking positions with

Citibank, United Asian Bank & Bank Of Commerce• 7 years as MD of Precision equipment manufacturer• 6 years in Steel Industry

Education :Kevin KokVP, Operations

• ICSA, AUSTRALIAExperience: • 25 years experience in the steel industry• Started in Maruichi in 1983, then was assigned to

Mycron in 1994Mycron in 1994.

Wong Yeap MinVP Finance

Education :• Fellow - CIMA, UK• Fellow - ACCA,UKVP, Finance Experience : • 8 years KPMG, 10 years Financial Management• 14 years Corporate Planning & General Mgt

OPERATIONS

COMPANY BACKGROUND

Att i d SIRIM ISO 9001 i 1996Attained SIRIM ISO 9001 in 1996.

Manufacturer of highest quality Malaysian CRC.Factory located in Shah Alam.

Location : Lot 717, Jalan Sungai Rasau, Section 16 40200 Shah Alam SelangorSection 16, 40200 Shah Alam, Selangor

Land : 781,423 sg.ft. (17.94 acres)Built-up : 307,507 sq.ft.Capacity : 15,000 t /mth

180,000 t /yearEquipment : Continuous Pickling Line

Hitachi 6-High Cold Reduction MillElectrolytic Cleaning LineBatch Annealing FurnaceRecoiling Line

WHAT IS CRC?HOT ROLLED COILS COLD ROLLED COILS DOWN STREAM INDUSTRIES

Vehicle Parts & Bodies

Consumer Goods

Electronics

Thick & Rusty Steel Sheet (1.7mm to

Thin & Clean Steel Sheet (0.2mm to

Pipes

Steel DrumsSheet (1.7mm to

3.5mm thick)Sheet (0.2mm to

2.5mm thick)MYCRON STEEL

Office & Home Furniture

CRC CUSTOMERS

P R O D U C T M IX S t e e l C e n t e r s A u t o & E l e c t r i c a l3 5 % 4 9 ,9 0 0 t / y r

D r u m M a k e r s2 3 % 3 2 8 0 0 t /

P a l m O i l , P e t r o l e u m2 3 % 3 2 ,8 0 0 t / y r

M Y C R O N S T E E L M e l e w a r S t e e l T u b e sR a t e d C a p a c i t y : 1 8 0 , 0 0 0 t / y r 1 7 % 2 4 ,2 0 0 t / y r F u r n i t u r e &

P e t r o l e u m

O p e r a t i n g C a p a c i t y ( o n c u r r e n t C R C r a n g e ) : 1 6 5 , 0 0 0 t / y r P i p e M a k e r s

1 2 % 1 7 ,1 0 0 t / y rC u r r e n t P e r i o d 1 7 m o n t h

E l e c t r i c a l

P r o d u c t i o n : 2 0 2 , 0 0 0 t S t e e l G a l v a n i z e r sA n n u a l P r o d u c t i o n : 1 4 2 , 6 0 0 t / y r 5 % 7 ,1 0 0 t / y r

C a p a c i t y U t i l i z a t i o n :F u r n i t u r e M a k e r s

8 6 %

Unlike long-product steel manufacturers, Mycron has

4 % 5 ,7 0 0 t / y r

S t e e l S t r a p p i n g s 3 % 4 ,3 0 0 t / y r

MINIMAL exposure to the domestic Construction Sector.

O t h e r s1 % 1 ,4 0 0 t / y r

RAW MATERIAL SUPPLIERS

Manufacturing Cost Structure % CostRaw Materials - Hot Rolled Coil (HRC) 87%M f t i & O h d C t 12%Manufacturing & Overheads Cost 12%Transportation Cost (Domestic) 1%

Manufacturing & Delivery Cost 100%

• HRC constitutes 87% of total production cost.

• 40% HRC purchased from MegaSteel because of import restrictions imposed by MITI. MegaSteel HRC is lower grade quality (i.e. made from scrap steel).

• 60% HRC imported from JFE, Japan. Imported HRC is higher quality p , p p g q y(i.e. made directly from smelted iron ore).

• MegaSteel’s HRC prices (to CRC manufacturers) are ≈ 5% higher than international prices Used to cost substantially morethan international prices. Used to cost substantially more.

• Currently almost 100% of CRC output is sold in Malaysia.

CRC MANUFACTURING PROCESS

Pickling Bath

INPUT – HOT ROLLED COILS

1

From Suppliers

HRC steel sheets arrive in coils.

1. HRC rust scales removed in acid-based Continuous Pickling Line.

2OUTPUT COLD ROLLED COILS Cold Roll Mill (CRM)OUTPUT – COLD ROLLED COILS

5

To Customers

OUT –Rough or Smooth CRC

IN - HRC or Rough CRC5. Finished CRC is inspected,

oiled, recoiled & sealed (for rust protection).

2. Sheets are passed through the Cold Roll Mill and

3. CRC are stacked in a Batch Annealing F d h t d

4. Annealed CRC is passed through CRM again, to

compressed into thinner sheets (CRC). Process is repeated until the appropriate thickness is attained.

Furnace, and heated, for several days, to return the mechanical properties to the steel.

g geven out any warps in the steel (Skinpass Process).

HOT ROLLED COILS (FROM SUPPLIERS) CONTINUOUS PICKLING LINE - ENTRY

CONTINUOUS PICKLING LINE - EXIT COLD REDUCTION MILL (Sheet compression)

ELECTROLYTIC CLEANING LINE H2 ANNEALING FURNACES (Loading)

H2 ANNEALING FURNACES (Heating) COLD REDUCTION MILL (Skinpass Process)

ELECTROSTATIC OIL COATER RECOILING LINE – Exit Tension Reel

PACKING CRC FINISHED GOODS STORE

FINANCIALS

STEEL PRICE CHART Since mid-2005 prices corrected substantially

(-US$ 170 /t) as China

C R C & H R C IN T E R N A T IO N A L P R IC E7 0 0

8 0 0( US$ 170 /t) as China

became steel exporter.

4 0 0

5 0 0

6 0 0

US$

/ M

T

C R CSince 2002 prices increased sharply due to demand surge by China.

Asian financial

crisisStrong price

2 0 0

3 0 0

4 0 0 H R Cprice

recovery.

0

1 0 0

2 0 0

Stable HRC:CRC spread ≈US$ 100/t

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

HRC manufacturers’ margins are significantly affected by market price fluctuationsHRC manufacturers margins are significantly affected by market price fluctuations.

CRC manufacturers’ margins are very stable, with HRC:CRC spread ≈ US$ 100/t.HRC price movements are always passed on to CRC customers.

6 0 0

FINANCIAL PERFORMANCE

M Y C R O N S A L E S , P B T & P A T5 0 0

6 0 0

3 0 0

4 0 0

RM

mil

Sharp increase in sales caused by sharp rise in price of CRC.

Strong profit recovery (FY 2007)

2 0 0

3 0 0Loss caused by inventory write-

down (FY 2006)

0

1 0 0Tax charge = Nil up to FY 2001

Profits are very stable (Avg PAT : RM25mil)

- 1 0 0

0

1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 F Y E 3 0 -6 - 0 7

S a l e s 2 0 3 1 9 2 2 0 4 1 6 0 1 9 7 1 8 2 1 6 0 2 0 1 2 7 0 3 5 7 3 2 5 4 8 2

P B T 1 5 1 2 1 5 4 3 7 3 0 1 9 3 4 3 3 3 6 - 1 5 . 5 2 9 . 4

P A T 1 5 1 2 1 5 4 3 7 3 0 3 8 2 4 2 4 2 6 - 1 2 . 2 2 1 . 8

6 - 0 7

y / e 3 1 J a n u a r y

INCOME STATEMENT

R M ' 0 0 0

4 8 2 ,3 3 5

F Y E 3 0 /6 /0 7

G r o s s R e v e n u e 2 0 1 , 0 8 5 2 6 9 , 5 7 7 3 5 7 , 2 8 4 3 2 5 , 4 6 1

y / e 3 1 J a n u a r y 2 0 0 3

R M ' 0 0 0 2 0 0 4

R M ' 0 0 0 2 0 0 5

R M ' 0 0 0 2 0 0 6

R M ' 0 0 0

♥ Ω

( 4 3 7 ,5 5 9 ) 4 4 ,7 7 6

1 ,4 2 8

, , , ,

C o s t o f S a l e s ( 1 6 2 , 7 4 3 ) ( 2 3 1 , 9 7 8 ) ( 3 0 9 , 8 7 7 ) ( 3 3 0 , 9 6 3 ) G r o s s P r o f i t 3 8 , 3 4 2 3 7 , 5 9 9 4 7 , 4 0 7 ( 5 , 5 0 2 ) O t h e r I n c o m e 1 , 2 2 6 7 9 6 6 7 2 3 4 9

♥

( 2 ,8 4 5 )

8 ,7 6 5 ( 3 ,9 8 7 )

D i s t r i b u t i o n C o s t ( 2 , 6 8 2 ) ( 1 , 8 9 3 ) ( 1 , 7 7 7 ) ( 1 , 3 4 8 )

A d m i n C o s t ( 2 , 9 9 2 ) ( 1 , 9 5 0 ) ( 8 , 7 2 0 ) ( 5 , 9 1 7 )

F i n a n c e C o s t - ( 1 , 8 9 5 ) ( 1 , 9 1 4 ) ( 3 , 1 4 1 ) ( , )( 1 ,1 6 9 )

2 9 ,4 3 7 ( 7 ,6 6 4 )

( , ) ( , ) ( , )O t h e r E x p e n s e s - - - - P r o f i t B e f o r e T a x 3 3 , 8 9 4 3 2 , 6 5 7 3 5 , 6 6 8 ( 1 5 , 5 5 9 ) T a x ( 9 , 9 4 9 ) ( 9 , 0 7 9 ) ( 9 , 5 4 4 ) 3 , 3 5 9

♣

2 1 ,7 7 3 P r o f i t A f t e r T a x 2 3 , 9 4 5 2 3 , 5 7 8 2 6 , 1 2 4 ( 1 2 , 2 0 0 ) ♥ Gross Revenue has grown strongly with the increase in HRC prices.

Mycron has passed on the price increase of raw materials to customers. Ω Since mid 2005 (FY 2006) HRC & CRC prices have fallen

♣ PBT loss of RM 15.6 mil, due to write down in inventory values following the fall in international HRC prices. Mycron has reduced HRC cost to US$ 445 /MT. This is a one-time loss.

Ω Since mid-2005 (FY 2006), HRC & CRC prices have fallen. PBT has been strong for the past 3 years (avg. RM 34 mil /year).

3 1 J a n u a r y

BALANCE SHEET

2 0 0 3 2 0 0 4 2 0 0 5R M ' 0 0 0 R M ' 0 0 0 R M ' 0 0 0

F i x e d A s s e t s 1 2 8 , 3 0 4 1 2 6 , 8 7 9 1 2 7 , 4 9 1 1 8 5 , 3 3 4 D f d T A t 7 8 7 4 0 0 4 7 0 0

B A L A N C E S H E E T 2 0 0 6 R M ' 0 0 0

y

♥

F Y E 3 0 / 6 / 0 7R M ' 0 0 0

2 5 9 , 4 9 8 0D e f e r r e d T a x A s s e t 7 , 8 7 4 0 0 4 , 7 0 0

D e f e r r e d T a x L i a b i l i t i e s 0 ( 1 , 0 0 7 ) ( 8 , 8 0 2 ) ( 2 0 , 0 1 0 ) C u r r e n t A s s e t s 1 0 8 , 2 6 1 9 0 , 2 4 7 1 5 2 , 1 9 1 1 3 9 , 8 1 4 C u r r e n t L i a b i l i t i e s ( 9 8 8 9 ) ( 7 9 9 1 7 ) ( 4 8 7 0 4 ) ( 8 1 8 1 7 )

0( 2 1 , 7 4 9 )

1 6 6 , 9 1 7 ( 9 8 5 6 3 )C u r r e n t L i a b i l i t i e s ( 9 , 8 8 9 ) ( 7 9 , 9 1 7 ) ( 4 8 , 7 0 4 ) ( 8 1 , 8 1 7 )

N e t C u r r e n t A s s e t s 9 8 , 3 7 2 1 0 , 3 3 0 1 0 3 , 4 8 7 5 7 , 9 9 7 N o n C u r r e n t L i a b i l i t i e s 0 0 0 0N E T A S S E T S 2 3 4 5 5 0 1 3 6 2 0 2 2 2 2 1 7 6 2 2 8 0 2 1

( 9 8 , 5 6 3 ) 6 8 , 3 5 4

( 5 8 , 8 8 2 ) 2 4 7 2 2 1N E T A S S E T S 2 3 4 , 5 5 0 1 3 6 , 2 0 2 2 2 2 , 1 7 6 2 2 8 , 0 2 1

S h a r e c a p i t a l 6 0 , 0 0 0 6 0 , 0 0 0 1 7 9 , 0 0 0 1 7 9 , 0 0 0 S h a r e P r e m i u m A c c o u n t 1 4 , 9 1 9 1 4 , 9 1 9 R e v a l u a t i o n R e s e r v e 3 0 5 7 5

2 4 7 , 2 2 1

1 7 9 , 0 0 0 1 4 , 9 1 9 3 1 1 3 4R e v a l u a t i o n R e s e r v e 3 0 , 5 7 5

R e t a i n e d P r o f i t s 1 7 4 , 5 5 0 7 6 , 2 0 2 2 8 , 2 5 7 3 , 5 2 7 S H A R E H O L D E R S ' F U N D S 2 3 4 , 5 5 0 1 3 6 , 2 0 2 2 2 2 , 1 7 6 2 2 8 , 0 2 1 ♥ Mycron has adopted international Financial Reporting Standards (FRS) for FY 2006

3 1 , 1 3 4 2 2 , 1 6 8

2 4 7 , 2 2 1 ♥ Mycron has adopted international Financial Reporting Standards (FRS) for FY 2006,

and this has resulted in a fixed asset revaluation surplus of RM 30.6mil. Drop in Current Assets due to write-down in value of inventories.

OPERATING MARGINS

F Y E 3 0 /6 /0 7R M 'm

4 8 2 3

A v e r a g e y /e 3 1 J a n2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 2 - 2 0 0 5 2 0 0 6R M 'm R M 'm R M 'm R M 'm R M m i l R M 'm

S a le s 1 6 0 2 2 0 1 1 2 6 9 6 3 5 7 3 2 4 7 0 3 2 5 4

y /e 3 1 J a n u a r y

4 8 2 .34 3 4 .84 7 .5

2 0 2 0

S a le s 1 6 0 .2 2 0 1 .1 2 6 9 .6 3 5 7 .3 2 4 7 .0 3 2 5 .4O p e r a t in g C o s t 1 3 1 .2 1 5 8 .0 2 2 6 .0 3 0 8 .2 2 0 5 .8 3 1 1 .7E B IT D A 2 9 .0 4 3 .1 4 3 .6 4 9 .2 4 1 .2 1 3 .7

T O N N A G E ( ' 0 0 0 t ) 1 2 1 4 1 4 2 2 1 5 4 1 1 5 4 5 1 4 3 1 1 1 8 2 2 0 2 .07 9 %

2 ,1 5 32 3 5

T O N N A G E ( ' 0 0 0 t ) 1 2 1 .4 1 4 2 .2 1 5 4 .1 1 5 4 .5 1 4 3 .1 1 1 8 .2C a p a c i t y U t i l is a t io n 6 7 % 7 9 % 8 6 % 8 6 % 7 9 % 6 6 %

O p .C o s t ( R M / t ) 1 ,0 8 1 1 ,1 1 1 1 ,4 6 6 1 ,9 9 4 1 ,4 1 3 2 ,6 3 7E B IT D A ( R M /t ) 2 3 9 3 0 3 2 8 3 3 1 8 2 8 6 1 1 6 ♥

♣

♦ 2 3 59 .8 %

E B IT D A ( R M / t ) 2 3 9 3 0 3 2 8 3 3 1 8 2 8 6 1 1 6E B IT D A / S a le s 1 8 .1 % 2 1 .4 % 1 6 .2 % 1 3 .8 % 1 6 .7 % 4 .2 %

♥

♣ Drop in sales tonnage, as customers withholding orders to reduce inventories, in anticipation of further CRC price falls in 2005 Customers inventory levels are

♦

♥ Lower margin per tonne (RM 116 /t) due to Cost of Sales at historic price. With write down in values of inventories at year-end, FY 2007 margins will better reflect operating profitability (should be similar to pre 2006 margins)

in anticipation of further CRC price falls in 2005. Customers inventory levels are at minimum levels, and orders have picked-up since Q1 2006.

better reflect operating profitability (should be similar to pre-2006 margins).

♦ If no major HRC price movements, profits for FY 2007 will return to pre-2006 levels.

DIVIDEND POLICY

1 8 0 %

( % ) D IV ID E N D P A ID Pre-IPO payoutas % of PUC

1 4

1 . 6

1 . 8

1

1 . 2

1 . 4

Dividend Policy

Payout

0 . 6

0 . 8Payout Ratio =

25% PAT

2 0 % 2 0 % 2 0 % 2 0 %7 %

0 % 4 %0

0 . 2

0 . 4

3.5%

02 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7FYE

FYE June30, 2007

BUSINESSBUSINESS

OUTLOOK

STEEL CONSUMPTION (Long & Flat Products)STEEL CONSUMPTION (Long & Flat Products)

9 8 9k g

P e r C a p i t a S t e e l C o n s u m p t i o n - k g / p e r a n n u m

The Future for 9 8 9

8 0 09 0 0

1 0 0 0I N D O N E S I A

P H I L I P P I N E S

V I E T N A M

T H A I L A N D

The Future for Malaysian Steel is Bright.

5 8 4

4 2 8

6 1 0

5 0 06 0 07 0 08 0 0

M A L A Y S I A

S I N G A P O R E

T A I W A N

K O R E A

3 1 3 07 5

2 1 82 9 4

7 9

1 0 02 0 03 0 04 0 0 J A P A N

A S E A N

pan

M l i 294 k f t l it ll

01 0 0

Source : MISIF 2006

ThaiVietPhilIndo Ja Asean

• Malaysia consumes 294 kg of steel per capita annually.• As Malaysia’s development continues, demand for steel will grow.• MISIF forecasts long-term demand growth of 6.0% per year.

DOMESTIC MARKET

SUPPLY t/year t/monthMycron 28% 11% 150,000 12,500

Market Share

Estimated Tonnage Although AP’s are restricted,

Malaysia imports 62% of its CRC needs (mostly high-end y , ,

OrnaSteel 57% 21% 300,000 25,000 MegaSteel 15% 6% 80,000 6,667 Local 100% 38% 530,000 44,167 I t 62% 870 000 72 500

♠

CRC needs (mostly high-endquality steel).

♥ Of the 38% CRC produced

locally, Mycron supplies 28%, O 57% & M 15%

♥Imports 62% 870,000 72,500

100% 1,400,000 116,667 ♠ MegaSteel Started production Q1 2006

Announced Capacity : 1,300,000 t/year

Orna 57% & Mega 15%.

p y , , yExpected Production : 200,000 t/year (Mycron opinion)CRC Quality : Low-end CRC. Focused on pipe / tube use.

Made from MegaSteel HRC (scrap based steel)

MYCRON’s STRATEGYMYCRON s STRATEGYMycron already producer of high-end quality CRC (for drum, electrical, auto component quality). Will move further up-market (i.e. auto bodies, roofing, etc) using higher quality imported HRC, via upgraded facility (ready by April 2008).

MegaSteel (with support from OrnaSteel & Mycron) is lobbying MITI to protect the domestic CRC market, by further restricting CRC imports.HRC is a protected market in Malaysia. CRC will be protected too.

PLANT UPGRADE & EXPANSION

• Embarking on plant upgrade and expansion. Capex: RM 120m.• Installation of new facilities –Tension Leveller, Skinpass Mill and

additional Annealing equipment. Completion: April 2008.

• Capacity increases from

additional Annealing equipment. Completion: April 2008.• Upgrade will raise quality of high-end CRC (=better margins).

2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 F Y E 3 0 / 6 / 0 7y /e 3 1 J a n u a r yU P G R A D E P & L

increases from 180,000 t/yr to 260,000 t/yr (+ 80,000 t /yr) or +45%

T O N N A G E ( '0 0 0 t ) 1 2 1 .4 1 4 2 .2 1 5 4 .1 1 5 4 .5 1 1 8 .2 2 0 2 .0E B I T D A ( R M m i l ) 2 9 .0 4 3 .1 4 3 .6 4 9 .2 1 3 .7 4 7 .5E B I T D A ( R M / t ) 2 3 9 3 0 3 2 8 3 3 1 8 1 1 6 2 3 5

A v e r a g e E B IT D A 2 0 0 2 - 2 0 0 5 R M / t 2 8 6A v g O p .C o s t ( R M / t ) 1 ,4 1 3 S a v in g s 4 .0 % 5 7E B IT D A P la n t U p g r a d e R M / t 3 4 2

• Profit After Tax increase due to the plant upgrade &

i i

Plant Upgrade Additional Output t/yr 80,000Payback (yrs)

EBITDA of Plant Upgrade RM mil/yr 27.4 4.4

PAT ft D I t t & T RM il/ 16 6 7 2

p g

expansion is estimated to beRM 16.6 mil /yr

PAT after Depn. Interest & Tax RM mil/yr 16.6 7.2

SITE PHOTOGRAPHS

SITE PHOTOGRAPHS

INVESTMENT IN PMP GALVANIZERS

• Mycron purchased 20% in PMP Galvanizers Sdn Bhd. • PMP is subsidiary of Multi Resources Holdings Sdn Bhd, (in s subs d a y o u t esou ces o d gs Sd d, (

Kuching, Sarawak) which manufactures roofing products like roofing truss, colour coating and roofing profiles, for export to Australia, New Zealand, Middle East and South East Asia.

• PMP is in the midst of installing a RM85 million CRC galvanizing plant (Capacity = 150,000 t/yr).

• Commissioning done in late January 2007.g y• PMP has signed an off-take agreement to buy up to 75,000 t/yr

of CRC upon completion of Mycron’s plant upgrade and expansion (Expanded Plant capacity= 80,000 t/yr).p ( p p y , y )

• Win-win for both :PMP has a regular supply of high quality CRC.Mycron is guaranteed an off-take for the added capacity.

MYCRON STEELPMPG CONTINUOUS GALVANIZING LINEPMPG CONTINUOUS GALVANIZING LINE

Payoff Reels with one coil finishing & another waiting to be fed in.

Exit Looper

MYCRON STEELPMPG CONTINUOUS GALVANIZING LINE

Entry Looper with coils being accumulated for continuous processing

OFFTAKE AGREEMENT WITH

BLUESCOPE STEEL

• Signed on July 31, 2007.

• Bluescope will buy from Mycron up to

60 000t b the 3rd ear from the date60,000t by the 3rd year from the date

of the agreement.

• HRC to be sourced from Bluescope

Australia.

• Outside of the 60:40 ruling.

TECHNICAL SERVICE AGREEMENTS WITH JFE

• First one was signed in April 2006.

JAPAN

First one was signed in April 2006.

• JFE to provide technical assistance in producing thin-gauge CRC (<0.3mm).

• To enable Mycron to penetrate the roofing and auto industries.

• Involves secondment of JFE technical staff to Mycron.

• Involves training and attachment of Mycron’s technical staff at Fukuyama Works, Japan.

• Second agreement was signed on January 31, 2007.g g y ,

• 18-month program whereby JFE will assist Mycron in developing auto-grade CRC.

• JFE to supply high quality HRC substrate as the raw material.

SHARE VALUATIONSHARE VALUATION

MYCRON SHARE PRICE MOVEMENT

• Mycron’s share price has performed poorly compared to the CI.• Reasons :

Fall in HRC prices. Poor construction sector performance negative out-look for steel sector. Post IPO stock over-hang after MIG 1:4 distribution in-specie of Mycron shares.

VALUATION OF

LISTED STEEL COMPANIESLISTED STEEL COMPANIES

S h a r eP r ic e P E C o m p a n ie s

The PE ratio for listed steel companies is relatively low at P r ic e

R M p sA n n J o o R e s o u r c e s 3 .7 8 1 1 .0

R a t io p

( J u n e 3 0 2 0 0 7 ) p y

10.04x compared to the Industrial Sector PE of 17.8x.

Valuations are slightly down A IS B 0 .6 0 -C h o o B e e M e t a l 2 .3 8 7 .7

g ybecause of fall in HRC prices (one-time effect).

But main share price F A C B In d 0 .8 5 -H ia p T e c k 2 .1 0 2 1 .3K in s t e e l 6 2 5 1 7

psuppression caused by the slow down in the domestic construction sector.

K in s t e e l 6 .2 5 1 .7O r n a s t e e l 1 .6 5 8 .5M y c r o n S t e e l 0 .8 0 5 .8

Under 9th Malaysia Plan construction industry will eventually pick-up.

M y c r o n S t e e l 0 .8 0 5 .8 A V E R A G E 1 0 .0 4

PE for steel sector should eventually go above 10.04x.

MYCRON E iy/e 31 January

VALUE OF MYCRON SHARES

MYCRON ExpansionPROFITS 2003 2004 2005 2006 Profit

RM'm RM'm RM'm RM'm RM'mProfit After Tax 23.9 23.6 26.1 -12.2 16.6

y/e 31 January

Steel companies are affected by the slow down in the construction sector

Average PAT (maintainable) 24.5 24.541.1

Paid Up Capital (mil shares) 179 179EPS (maintainable) 0.137 0.230

& have low PE ratios (10.04x).Mycron has a PE ratio (5.8x) lower than the steel industry.B t M h l t ZEROBut Mycron has almost ZERO exposure to the construction sector.Mycron supplies to the electronic, auto, palm oil, petroleum & furniture

R M p s P E R R M p s4 .4 0 .6 05 .7 0 .7 8

M a r k e t p r ic e 0 .8 0 5 .8 0 .8 07 .3 1 .0 0

R M p s1 .0 11 .3 11 .3 41 .6 8

industries.Mycron’s valuation should be similar to these industries (PE≈14x).

8 .0 1 .1 09 .5 1 .3 0

N T A v a lu e 1 .3 3 9 .7 1 .3 3IP O p r ic e 1 .4 0 1 0 .2 1 .4 0

1 0 9 1 5 0

1 .8 52 .1 82 .2 32 .3 52 5 2

Mycron’s fair value : RM 1.90 ps

1 0 .9 1 .5 01 2 .0 1 .6 51 2 .4 1 .7 01 3 .1 1 .8 0

E n d U s e r S e c t o r ( P E 1 4 x ) 1 3 .9 1 .9 01 4 6 2 0 0

2 .5 22 .7 72 .8 53 .0 23 .1 93 3 6

With expansion, value : RM 3.19 ps 1 4 .6 2 .0 01 5 .3 2 .1 01 6 .1 2 .2 0

In d u s t r ia l S e c t o r ( P E 1 7 x ) 1 6 .8 2 .3 01 7 .5 2 .4 0

3 .3 63 .5 33 .6 93 .8 64 .0 3

SUMMARY

SUMMARY

• Mycron has been profitable since it started operations in 1990.• Mycron is manufacturer of highest grade CRC in Malaysia.yc o s a u actu e o g est g ade C C a ays a• Malaysia imports 60% of its CRC needs. • International market price for HRC has been volatile. But spread

b t CRC & HRC h l b t bl ( US$ 100 /t)between CRC & HRC has always been stable (≈ US$ 100 /t).• CRC manufacturers always pass through HRC price changes to

its customers. The profit margin for CRC manufacturers is stable.• In Malaysia, the spread between HRC and CRC is also very

healthy (> US$ 100 /t).

Mycron enjoys good CRC:HRC spreads because of:

• Mycron’s 17 year client relations (1st M’sian manufacturer).• Mycron’s premium high-end CRC steel output.

• Mycron enjoys good CRC:HRC spreads, because of:

y p g p• Mycron’s strong reputation for quality.

SUMMARY

• MegaSteel entering CRC market with low-end quality steel.• Mycron is focused on high-end CRC steel. yc o s ocused o g e d C C stee• Technical Agreements with JFE will enable Mycron to

penetrate the roofing and automobile sectors.M i di f ilit t d hi h lit• Mycron is upgrading facility to produce even higher-qualityCRC. Expansion completion : April 2008.

• Upgraded facility will also increase capacity by 45%( 80 000 t/ )(=80,000 t/yr).

• PMP Galvanizers Sdn Bhd has signed off-take agreement for up to 75,000 t/yr of the additional CRC.

• The additional 80,000 t/yr capacity, will contribute RM 27.4 mil EBITDA or RM 16.6 mil PAT.Thi t S b t ti l I i P fit Aft T• This represents a Substantial Increase in Profit After Tax, and should be a RE-RATING FACTOR for Mycron.

SUMMARY

• Mycron’s share price (at RM 0.80 per share) is trading below its book value (NTA=RM 1.33 per share).

• Wrongly classified with long-product Steel counters, which were affected by the slow down in the domestic construction sector. Mycron has almost zero exposure to construction sector.

• Mycron’s PE ratio should be the same as its clients (electronics, auto, furniture, and drum for petroleum & palm oil industries) with PE=14x

• Mycron’s share price should be:

EPS = RM 0.137 x PE 14 = RM 1.90 ps (to match customers)

EPS = RM 0.230 x PE 14 = RM 3.19 ps (with plant expansion)

O l ifi d th id f M ’ STRONGOnce reclassified, the up-side for Mycron’s share price is tremendous…. + 299%

STRONG BUY

THANK YOUTHANK YOU