APM Automotive Holdings Berhad

FY2020 Second-quarter financial results

Cautionary Statement with Respect to Forward-Looking Statements

Information contained in this presentation is intended solely for your reference. Suchinformation is subject to change without notice, its accuracy is not guaranteed and it may notcontain all material information concerning the Company. We do not make representationregarding, and assumes no responsibility or liability for, the accuracy or completeness of, orany errors or omissions in, any information contained herein.

Statements or comments made during this presentation that are not historical facts areforward-looking statements that reflect our plans and expectations. These forward-lookingstatements involve known and unknown risks, uncertainties, and other factors that may causeour actual results, performance, or achievements to differ materially from that anticipated inthese statements.

These factors include (i) changes in economic conditions, currency exchange rates, the laws,regulations, government policies, or political instability in the market place, (ii) circumstancesrelating to our ability to introduce, in a timely manner, and achieve market acceptance of newproducts, and (iii) shortage of fuel or interruptions in transportation systems, labor strikes,work stoppages, or other interruptions to or difficulties in the employment of labor in themajor markets where we purchase materials, components, and supplies for the production ofour products or where our products are produced, distributed, or sold.

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Key performance indicators

RevenueOperating

Profit/(Loss)

Earnings/(Loss) Per

Share

Net Assets Per Share

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Lower revenue YoY and impact to the bottom line as a result of operation halts due to Movement Control Order (MCO).

Profit/(Loss) Attributable to

S/H

RM (mil) RM (mil)2Q2019

2Q2020

RM (mil)

-237%

-21.6

15.8

8.56

-20.88

- 344%

2019 2020

358.4

151.6

-57.7%

RM (sen)

4.38- 344%

-10.68

2019 2020

6.36 6.43

+1.1%

RM

Business Update

2Q20 Operation & Financial Review

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2Q20 Financial review

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QoQ YoY

RM'000 2Q20 1Q20 2Q192Q20 vs

1Q202Q20 vs

2Q19

Revenue 151,579 279,548 358,369 -45.8% -57.7%

Profit before Tax (22,719) 304 17,669 -7,573.4% -228.6%

Net (Loss)/Income (20,394) (2,307) 13,641 -784.0% -249.5%

(Loss)/Profit Attributable to Shareholders

(20,883) (6,200) 8,560 -236.8% -344.0%

(Loss)/Earnings per Share (Sen) (10.68) (3.17) 4.38 -236.9% -343.8%

Net Assets per Share 6.43 6.40 6.36 0.5% 1.1%

Return on Equity (Annualised) -4.28% -1.97% 2.96%

Dividend per Share (Sen) - - 5.00

Dividend Yield - - 1.82%

Net Profit Margin -13.45% -0.83% 3.81%

Significant reduction in both revenue and profit resulting from operation loss affected by the MCO and soft global economy.

Segmental sales

REVENUE (RM'000) Q2 2020 % Q2 2019 %

OE 82,759 54.5% 250,590 69.9%

RE 12,707 8.4% 33,005 9.2%

Export 16,468 10.9% 27,424 7.7%

Others 1,015 0.7% 9,554 2.7%

Foreign Operations 38,630 25.5% 37,796 10.5%

TOTAL REVENUE 151,579 100% 358,369 100%

Domestic sales were affected due to loss of operation during MCO period. Foreign operations continue to improve as demand for public transport

seats in Australia and air-conditioning in Vietnam remain robust.

Segmental performance

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Higher revenue in operations outside Malaysia contributed by the higher sales of coach / train seats in Australia and air-conditioning products in

Vietnam.

REVENUE (RM’000) Q2 2020 Q2 2019 Change

Suspension 5,218 15,418 -66.2%

Interior & Plastics 71,842 220,050 -67.4%

Electrical & Heat Exchange 6,786 21,710 -68.7%

Marketing 27,342 52,797 -48.2%

Others 1,761 10,598 -83.4%

Malaysia Operations 112,949 320,573 -64.8%

Operations outside Malaysia 38,630 37,796 2.2%

TOTAL REVENUE 151,579 358,369 -57.7%

Business Update

2Q20 Operation & Financial Review

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Production TIV

Decrease in revenue resulting from lower orders from OEMs corresponding to lower production TIV in Malaysia.

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Source: MAA (as for Production TIV)

2014 2015

APM Revenue (RM’mil)Production TIV

2016 2017 2018 2019 20202013

National & Non-national Market Share

National brands regaining market share.

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2Q20 TIV

Lower TIV across all brands suffered as a result of the implementation of Movement Control Order (MCO) since 18th March 2020.

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Q-o-Q %

Toyota -25.3%

Nissan -40.5%

Honda -45.7%

Mitsubishi -30.1%

Isuzu -30.8%

Mazda -44.7%

Q-o-Q %

Perodua -35.1%

Proton -29.6%

Q-o-Q %

Ford -36.0%

VW -41.6%

BMW -41.1%

106,428

68,247

1Q20 2Q20

-36.0%

FY20 business update

❖ 2Q20 TIV 68.1K; -36.0% QoQ mainly due to the implementation of MCO in Malaysia that caused most business closures from 18th March 2020 until 3rd May 2020.

❖ Exemption of vehicle sales tax until end of year shall boost the sales of vehicles for the remainder of the year, as evidenced by MAA revising the TIV forecast to 470k units (from 400k).

❖ The Group is also evaluating some counter measures to cushion the slowdown in orders from OEMs.

❖ Counter measures include:

⮚ Expansion of new business - new products / segment.

⮚ Intensify the development of parts for replacement markets.

⮚ Consolidate certain operations to reduce overhead costs.

⮚ Expansion into new products via JV or acquisition of business.

⮚ Study of other sources of supply to reduce material costs.

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Strategic Purpose

Environment

Market Assessment

Target Opportunities

Growth Opportunities

Risk Management

Implementation Plan

Targeted Research

Our Vision Our Strategy

Global Market

Review

Asia Pacific

Market Review

Malaysia Market

Review

Economy &

Environment

Tier 1

Competition

Local

Supplier

Lessons

Learned

M&A Opportunities Tier 1 Supplier Tier 2 Supplier

Due

Diligence

IP

Production

Legal & HR

Partnerships

Detailed

Planning

JVLocal

Resources

Quotation &

Proposals

Supplier/Too

l Resource

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M&A Opportunities

Moving Forward

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Geographical Diversification

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Port Klang

Tanjong Malim

Bkt Beruntung

Suspension & Heat Exchange

Electrical & Heat Exchange

Interior & Plastics

Binh Duong

Suspension & Seats

Cikampek Lippo Cikarang

Karawang

Coil Spring

Interior & Plastics

Seats

North Coburg

Seats

Rayong

Plastics & Components

Bago

Interior & Plastics

Propose plant set upPlant

Kulim

Interior & Plastics

Leaf Spring

Netherlands

Springs, absorbers and coil-overs

Shock Absorber

Brisbane

Indianapolis

New Jersey

NJ, California and IndianaDistribution Centre

California

Sub-Assembly &

Manufacturing

Distribution (Vehicles &

Parts)

Retailer (Vehicles, F&!,

Parts & Service)

CustomerAutomotive Value Chain

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Integral Player within Local Automotive Eco-systems

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Auto Cycle Investing

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