Malaysia Airports Holdings Berhad

1. Malaysia Airports Holdings Berhad INVESTORS BRIEFING 30 March, 2001

2. Agenda • Corporate Overview • Operations Overview • Financial Highlights • New Business Initiatives

3. Corporate Overview Background • Malaysia Airports currently manages 5 international airports including KLIA, 15 domestic airports and 17 STOLports • Malaysia Airports has a diversified business portfolio, principally involved in service-orientated activities. This is achieved through utilisation of existing resources and assets redevelopment • Malaysia Airports had since its incorporation launched several new business initiatives. This is in line with its strategy to provide strong basis for future income growth from non-aeronautical income sources, whilst ensuring growth of income in the aeronautical sector

4. MAMTS TAMS.COM Airport Ventures MA Niaga SIC NECC APAC MA Properties MASB MA Sepang MA ATS MAAH Cultivation of oil palm CAMS Manager of Pochentong Airport in Cambodia 40% KAFS Aviation fuelling system 20% 49% UTW Provide technical services 60% KLAH Pan Pacific Hotel at KLIA Corporate Overview Group structure MAHB 99.05% Note: All companies are 100% owned unless otherwise indicated

5. Corporate Overview Concession terms for KLIA • Grants MA Sepang a 50-year concession and lease beginning May 5, 1998 • Based on commercial viability of the concessionaire and sharing of the risk-reward relationship • Salient financial terms: • a scheduled concession fee payment of RM1,308m over the next 5 years • an annual lease rental payment, which commences from RM60m in 2004, increasing by 4% each subsequent year • 8% of MA Sepang’s audited total revenues each year, commencing year 2004.

6. Corporate Overview Licence Terms For Other Airports • Grants MASB a 30 year licence to operate 36 airports and 17 STOLports in Malaysia beginning 1 November 1992 • Operation and management of airports transferred to MASB but airport infrastructure remains with Government • Annual lease payment to Government of RM5 million

7. Operations Overview KLIA Statistics • Opened for commercial operations on June 30, 1998 • Handled 14.7 million passengers in 2000. Has the capacity to handle 25m passengers per annum • To date, 37 international airlines operate scheduled passenger services at KLIA, and a further 7 operate as freight carriers. • Has one of the lowest tariff charges in the region given the quality of the facilities offered. This offers significant value to our customers • Employs state of the art features • 2 parallel runways allowing simultaneous operations • TAMS - total integrated airport management system • BHS and TTS for seamless passenger convenience.

8. Operations Overview KLIA - Achievements • IATA’s Global Airport Monitor report issued in April 2000 ranked KLIA as: • 6th in the “Overall Passenger Satisfaction” category, up from 14th the previous year. • 3rd for “Sense of Security” for airports in the category of 15 - 25m pax per annum. • 6th in “Speed of Baggage Delivery” for airports of midsize category ie 15 - 25m pax per annum. • 9th in “Ground Transportation to/from airport” for the category of 15 - 25m pax per annum. • IATA’s Global Connectivity Monitor ranked KLIA as having the second best hub potential in the Asia-Pacific, after Sydney.

9. Industry Overview Growth in traffic movements • Passenger: • Total of 32.7 million in 2000, a growth of 11.7% • For KLIA, 14.7 million passengers, a growth of 11.4% • Forecasted CAGR of 4.5% from 2001 to 2010* • Cargo: • Total of 773.9 million kilogrammes in 2000, a growth of 17.8% • Forecasted CAGR of 6.8% from 2001 to 2010* • Air Traffic Movement: • Total of 0.36 million in 2000, down 1.1% • Forecasted CAGR of 3.9% from 2001 to 2010* * Source: Cranfield University

10. Business Strategy Strategies for Growth • Maximising shareholder value • Focus on growth in value drivers; traffic, productivity and non aeronautical income • Capitalise on balance sheet strength • Exploit non-aeronautical income opportunities • Creating a regional hub at KLIA: • Aggresively promote KLIA to maximise connectivity and frequency • Drive processes towards operational excellence for efficiency and reliability

11. Business Strategy Creating KLIA into a ‘hub’ • Growth in KLIA passenger movement • Capacity offered to European, Oceania and Japanese sectors have also increased Source: OAG Max

12. Business Strategy Creating KLIA into a ‘hub’ (cont’) • British Airways, All Nippon Airways and Aeroflot had announced intention to leave but increase in frequencies by MAS, KLM, Lauda Air etc expected to counter the impact • Lion Air, Air Tours International and Polar Air commenced operations to KLIA in 2000. • New destinations : Mumbai, New Delhi, Hydrabad and Bangalore The expected turn-around of MAS which is now in a stronger position to seize the opportunities will contribute positively towards the success of KLIA Aggressive promotion of KLIA will be a continuous effort in maximising connectivity and frequency out of KLIA.

13. Source: Air Transport Group, College of Aeronautics, Cranfield University, UK MAHB Airport Charges Against Other Airports Financial Highlights • Our airport charges are significantly below average • The company has room to seek a review in tariffs whilst maintaining competitive position

14. Financial Highlights Non-aeronautical income • No economic regulation on non-aeronautical activities • Diversification strategy has increased non-aeronautical revenue source • Further growth on new businesses/projects currently being undertaken (1) APAC (2) NECC • Potential upside from development of existing landbank of 10,000 acres at Sepang. 29% CAGR 95* 96 97 98 99 00

15. Financial Highlights Summary consolidated profit and loss Unaudited 2000 RM mn 1996 1997 1998 1999 900 Turnover 525 614 659 817 (759) Operating expenses (253) (323) (409) (685) 120 179 Other income 69 83 96 261 311 Profit before depreciation 341 374 346 (59) (43) Depreciation (32) (26) (23) 2 - Share of profit of associated company - 1 4 204 Profit before taxation 310 349 324 272 (81) 48 (112) Taxation (0.4) 18 3 Minority interest - 3 - - 126 Profit attributable to shareholders 357 236 342 275

16. Financial Highlights Summary consolidated balance sheet Unaudited 2000 RM mn 1996 1997 1998 1999 606 793 Current assets 976 1,010 847 195 346 89 88 Investments 57 1,959 1,510 Fixed assets 288 627 1,098 Other assets - - 2 5 10 Total assets 2,760 2,649 1,324 1,730 2,044 Current liabilities 283 281 472 403 125 46 109 Other non-current liabilities 47 50 49 Total liabilities 522 171 330 329 512 Net Assets 1,153 1,400 1,715 2,127 2,248 34 37 40 12 36 Minority interest 1,675 1,364 2,214 2,090 1,141 Shareholders funds 2,248 Total shareholders' equity 2,127 1,153 1,400 1,715

17. Sepang F1 Circuit • Since 1999, Sepang International Circuit has organised world class motorsport events such as : • Formula One • Motorcycle Grand Prix • Japanese Grand Touring • Merdeka Millenium Endurance • Formula One • For the 2000 event, more than 88,000 spectators with 65% comprising of foreigners. • For the 2001 event, more than 75,000 spectators with 40% comprising foreigners.

18. Sepang F1 Circuit • Formula One (cont’) • More than RM500 million was generated for the economy in the first F1 event in 1999. • Boosted image of Malaysia internationally and contributed to tourism growth • More events are being planned for 2001 onwards

19. NECC National Exhibition & Convention Centre (NECC) • Gateway to a revolutionary experience for exhibitions and conventions in Asia • Located at formerly the Terminal 1 of the Sultan Abdul Aziz Shah Airport in Subang • Logical evolution of an ex-airport (Subang) given inherent feature of large space and operating aircraft runway • Directly accesible by cargo planes and private jets to commercial Boeing 747s flying at maximum load • Spacious Exhibition space and convention centre with various facilities

20. NECC National Exhibition & Convention Centre (NECC) • 8% per annum average growth in trade exhibitions in Asean. • Good potential for Exhibition industry to grow in Malaysia. • NECC can be established as exhibition market gateway for ASEAN and greater Asian region

21. NECC National Exhibition & Convention Centre (NECC) • Revising the development plan to build on modular basis over several phases in order to avoid revenue and capital cost mismatches. This will also enable us to better plan the centre to be flexible and cater for the future trends of the industry. • Construction has not commenced and financing currently being developed

22. APAC Asia Pacific Auction Centre (APAC) • Regional total clearance centre • Situated at the site of the former cargo complex within the perimeters of Sultan Abdul Aziz Shah Airport, Subang • Maximising utilisation of existing infrastructure at the airport with minimal capital costs • Principal activities i.e. conducting of local and international auctions • Facilities include customs office, freight forwarders, financial services, insurance and Road Transport Department office to facilitate auction process • Commenced operations in October 2000. More frequent auctions are planned for 2001 onwards

23. SUMMARY • Continued traffic growth expected • Potential increase in tariffs without compromising competitiveness • Further upside potential from non-aeronautical activities eg APAC and NECC • Low capex requirements at KLIA.

24. Thank You