Malaysia Airports Holdings Berhad Corporate Presentation

Version 1 18/08/2014

Disclaimer This presentation may contain forward-looking statements by Malaysia Airports Holdings Berhad that reflect management’s current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptions and made subject to a number of risks, uncertainties and contingencies. Actual results, performance or achievements may differ materially and significantly from those discussed in the forward-looking statements. Such statements are not and should not be construed as a representation, warranty or undertaking as to the future performance or achievements of Malaysia Airports Holdings Berhad and Malaysia Airports Holdings Berhad assumes no obligation or responsibility to update any such statements.

No representation or warranty (either express or implied) is given by or on behalf of Malaysia Airports Holdings Berhad or its related corporations (including without limitation, their respective shareholders, directors, officers, employees, agents, partners, associates and advisers) (collectively, the "Parties") as to the quality, accuracy, reliability or completeness of the information contained in this presentation (collectively, the "Information"), or that reasonable care has been taken in compiling or preparing the Information. None of the Parties shall be liable or responsible for any budget, forecast or forward-looking statements or other projections of any nature or any opinion which may have been expressed in the Information. The Information is and shall remain the exclusive property of Malaysia Airports Holdings Berhad and nothing herein shall give, or shall be construed as giving, to any recipient(s) or party any right, title, ownership, interest, licence or any other right whatsoever in or to the Information herein. The recipient(s) acknowledges and agrees that this presentation and the Information are confidential and shall be held in complete confidence by the recipient(s). No part of this presentation is intended to or construed as an offer, recommendation or invitation to subscribe for or purchase any securities in Malaysia Airports Holdings Berhad.

2

Table of Contents No.

Title

1. MAHB at a glance 2. Sustainable Commercial Strategies 3. KLIA Next Generation Hub 4. KLIA Aeropolis

5. Overseas Ventures 6. Taking it to the Next Level

3

MAHB at a glance

[CLIENT NAME]

MAHB at a glance RM10.5bn Market cap(4)

79.6mm Passengers(1) Langkawi

KLIA + 38 Airports In Malaysia

9.4% EBITDA growth(3)

Pulau Pinang

KLIA Kota Kinabalu

Top 5 Global rankingAirport service quality

International Domestic Short take-off & landing

8.3% ROE(1)

Kuching

36.6% Khazanah ownership

AAA / A3 RAM & Moody’s credit rating

At least 50% dividend payout(2)

Note: (1) FY 2013; (2) From 2007 to 2013, excluding IC12 accounting adjustments; (3) EBITDA growth CAGR during 2008-2013; (4) MAHB market cap as of 12 August 2014

5

Experienced Management Tan Sri Dato Sri Dr Wan Abdul Aziz bin Wan Abdullah Chairman of the Board

Tan Sri Bashir Ahmad bin Abdul Majid Advisor

− −

− − −

Held the position since June 2012 Held several positions at the Ministry of Finance (MOF) including Deputy Director General, Macro Planning Division (Economic Planning Unit) and was appointed Secretary General of Treasury in the MOF (2007 – 2012)

− − −

Appointed as MAHB’s Managing Director on 23 June 2014 Former CEO of Multimedia Development Corporation for 8 years Led MSC Malaysia initiative which had evolve and giving rise to over 3,400 ICT’s Companies 18 years experience with Hewlett Packard Group and his last position was Director and Country General Manager

− −

Joined the Department of Civil Aviation (“DCA”) in 1981; has been with MAHB since inception Has 33 years of experience in airport planning, development, operations and maintenance

Faizal Mansor Chief Financial Officer

− − − − −

Dato’ Azmi Murad Senior General Manager Operation Services

− Joined DCA in 1970 and has 44 years of experience in the aviation industry

−

Dato’ Abdul Hamid Mohd Ali Chief Operating Officer

Datuk Mohd Badlisham bin Ghazali Managing Director

−

Appointed as Advisor of MAHB on 6th June 2014 11 years as Managing Director in MAHB (2003 – 2014) Instrumental towards the success of MAHB’s transformation since 2013 Prior to MAHB, 29 years experience in MAS

Faizah Khairuddin Senior General Manager Commercial Services

− Joined MAHB in 2006 and has 18 years experience in the manufacturing and banking industry

Joined MAHB in 2006 Primarily responsible for MAHB’s successful financial restructuring in 2009 Has extensive experience in treasury, corporate and investment banking In 2013, named “Best CFO (Malaysia)” by FinanceAsia 13th Annual Poll In 2012, named “Best CFO for Investor Relations (Mid-Cap)” by MIRA

Khair Mirza Serior General Manager, Planning − Joined MAHB in 2011 with previous experience in strategic research and investment planning

Ir. Suradini Abdul Ghani Senior General Manager Human Resource Services

Ir. Zaifuddin Idris Senior General Manager, Technical Services − Joined MAHB in 2010 − 24 years experience in the construction industry including highways, infrastructure and building project locally and abroad

− Appointed GM of Human Resources Services in Nov 2011. 22 years of experience in various departments within MAHB

6

The Past Decade: From an Airport Operator to a World Class Airport Business 2014

2010

2009 2004

MOF (Inc)'s 50% stake in Malaysia Airports transferred to Khazanah, which ended with up wtih 73% shareholding and transformation initiatives introduced with Malaysia Airports being run as a commercial entity

2006

Malaysia Airports becomes one of Khazanah’s top 20 GLCs with high performance expectations Opening of first dedicated terminal for LCCs (LCCT KLIA) in the region

New Operating Agreements in place; Malaysia Airports is now restructured and able to operate the airports with a clear business direction

7

Launch of Malaysia Airports' 5 year business direction, Runway to Success (2010 to 2014)

Opening of klia2, the world's largest purpose-built terminal for low cost carriers

Malaysia Airports is rated AAA / A3 by RAM / Moody's

Completed 40% acquisition in Sabiha Gökçen Int’l Airport, with current equity interest now at 60%

Highlights of Financial Performance  MAHB’s solid performance across multiple metrics demonstrates the overall strength of the business and management’s ability to execute its strategy Passenger Movement

Commercial Aircraft Movement

Revenue Growth

(mn)

(‘000)

(RM mn)

79.6

4,098.8

737.8

67.2

3,548.1

646.2

2012

2013

2012

EBITDA

PBT

(RM mn)

(RM mn)

929.7

899.5

826.5

PAT (RM mn) 602.8

574.1

766.6

2012

2013

553.2

2013

401.2

394.5

377.6

317.5

475.0

2010

2011

2012

Source: MAHB’s Annual Report 2011, 2012 & 2013

2013

2010

2011

2012

8

2013

2010

2011

2012

2013

Achieving Our Vision of Becoming a World Class Airport Business

9

Fastest-growing major hub in Asia KLIA outperforms key hubs in Southeast Asia Over ¼ of the world’s population lives within a 4-hour flight radius of KLIA

KLIA’s high growth vs key regional hubs (2008-2013 pax CAGR) 13.3%

HKG MUM

10.9% BKK

9.2% KLIA SIN

7.3% CGK

4.3%

 Strategic geographic location

 Huge population catchment area  Strong in-bound tourism – 10th most visited country globally

CGK

KLIA

 Air travel the most important transportation mode in the

region  Strong and fast-growing LCCs – 16.6% CAGR over last 5 years(1) Source: Company filings, United Nations World Tourism Organization, MAHB Note: (1) Based on historical LCCT passenger growth in 2008 – 2013; (2) Bangkok Airport includes Suvarnabhumi Airport and Don Mueang International Airport

10

(2)

BKK

SIN

HKG

World class airport operator Amongst the lowest airport charges in the region(1)… International passenger service & related charges

Landing charges A320

Charges (RM)

Charges (RM ‘000)

80

Avg. RM 67.50(3)

60 40 20 0 SIN

HKG

BKK… KLIA MTB CGK

2.5 2.0 1.5 1.0 0.5 0.0

… but achieving above-average ROE(2)

Avg. RM 1.5K

HKG

10.8%

SIN

10.6%

MAHB

9.7%

AOT

7.0%

BCIA HKG

klia2

SIN

CGK

BKK (AOT)

4.7%

KLIA

Avg. 8.6%

Robust passenger traffic growth, which has endured even the most extreme shocks

9/11

(‘mil pax)

Global Financial Crisis

SARS

EU Sovereign Debt Crisis

100

80

80 60 40

33

33

34

34

2000

2001

2002

2003

39

42

43

45

2004

2005

2006

2007

48

51

2008

2009

58

64

67

2011

2012

20 0 2010

Source: Factset, company filings, flightglobal, MAHB Note: (1) As of Feb 2014; (2) Past 5 years average ROE: HKG and SIN as of FYE Mar 31 and AOT as of FYE Sep 30; (3) Average excludes KLIA LCCT international passenger service fee and related charges

11

2013

Awards Widely recognized for operational excellence 2011, 2013 World’s Best Immigration Service

2012 Best Airport Staff, Asia

2014 World’s 2nd Best Airports (25 – 40mppa)

2013 Ranked 3rd in top 10 airports worldwide 2010 Airport Investment Company of the Year (above 15 mppa)

2010 Asia's Leading Airport Hotel and World's Leading Airport Hotel

2006–2008 World’s Best Airport (15–25 mmpa) 2009 Eagle Award for Best Airport

2009–2010 Best Brands in Transportation

12

12

Shareholding Analysis As at 31/12/13

As at 30/06/14

• • • •

DRP subscription rate of 46.2% and 85.0% for FY12 interim and final dividend respectively DRP subscription rate of 88.4% and 87.6% for FY13 interim and final dividend. Foreign participation has grown by 1.2% post March FY14 private placement which almost half of the deal was taken up by foreign investors Dividend Payout Ratio is 50% of Net Profit 13

Sustainable Commercial Strategies

[CLIENT NAME]

Sustainable commercial strategies Commercial development will be a key growth driver Time frame

1 Short term 1-2 years

2 Medium term 2-5 years

3 Long term >5 years

Overseas Ventures Growth drivers

KLIA Aeropolis

KLIA – Next Generation Hub

Description  Commercial/ retail optimisation

and expansion  Terminal-linked property development  gateway@klia2  Hotels & other commercial centers

 KLIA Aeropolis  Premium outlets  Other potential projects include

golf course, theme park, concert hall and medical tourism

15

 Overseas airport management

contracts  Overseas airport investment  Overseas commercial businesses

– duty free, hotels, parking, etc

KLIA Next Generation Hub

[CLIENT NAME]

KLIA Next Generation Hub Runway 1

KLIA (MTB) Capacity: 25.0 mppa FY13 Utilization : 25.7mppa (+24.6%)

Runway 2 klia2 Capacity : 45.0 mppa FY14E Utilization: 23.7mmpa

Old LCCT Capacity : 15.0mppa FY13 Utilization: 21.8mppa (+13.2%)

Runway 3

17

KLIA – Retail Optimisation Programme Airport Revenue Transformation

The beginning Contact Pier

Commercial Space (sqm)

Revenue (RM mil)

Satellite

Main Terminal 1A

2010

Main Terminal 1B

2011

1998

2008

2009

16,000 3% of GFA

18,200 3.5% of GFA

21,400 4.2% of GFA

21,500 4.22 % of GFA

23,300 4.63 % of GFA

98.8

Additional 17.3

Additional 45.0

Additional 2.5

Additional 7.0

18

KLIA – Retail Optimisation Programme Post Transformation Brands

New exciting luxury brands emerged after the Satellite Retail Optimization Project

19

klia2 – A Game Changer Largest LCC terminal in the world for the fastest-growing LCCs in Asia 1

PAX growth 2011–2020E (in mm)(1)

 Cater to rapid growth of LCC pax

Room for substantial pax growth

 Maximize commercial revenue potential 13% CAGR

 Multiple LCCs with strong growth

17.9

2011

2

first year of operation

16,000

 RM4.0bn

Low construction cost

23,300

6,500 LCCT

3

2020E

1.5x

5.4x

 Higher EBITDA margins expected vs. LCCT

45.3

2015E

Commercial space (sqm) 35,200

 c.50% utilization and EBITDA positive in

Strong utilization and profitability from onset

10% CAGR

28.7

KLIA-2

KLIA (before ROP) KLIA (after ROP)

Cost of airports construction comparison

 Amongst lowest construction cost/pax in the region

266

Suvarnabhumi

192

Changi(2)

Source: Company filings, Broker reports, MAHB Note: (1) AirAsia pax numbers forecast excluding associates’ Pax; (2) Terminal 3; (3) Upgrades at the Penang airport; (4) KK–Kota Kinabalu–Terminal 1;

20

167

Penang(3)

Cost/Pax (in RM)

111

89

KK(4)

klia2

klia2 – Retail Optimisation Enormous increase in commercial space

THE LCCT JOURNEY

The Beginning

The Expansion

klia2

Terminal Capacity

10mppa

15mppa

45mppa

Gross Floor Area

31,621sqm

64,067sqm

257,845sqm

Commercial Space (sqm) Sales/Pax (RM) No. of Outlets

35,200 1,353

6,500

14

22

15

61

40

225

 MAHB see remarkable growth on sales/pax each time commercial space at LCCT being expanded  MAHB foresee average sales/pax to rise to RM40 or 80% increase at klia2 21

klia 2 - Brands and Ambiance

22

A glimpse of klia2

23

A glimpse of klia2

24

A glimpse of klia2

25

A glimpse of klia2

26

KLIA Aeropolis

[CLIENT NAME]

KLIA Aeropolis – Overview Kuala Lumpur

Total KLIA Land

22,156 acres

Putrajaya Cyberjaya

Developed Land

Putrajaya

50% Nilai

Airport Required Land

70% Enstek KLIA

Approved Landside Development

30%

5 km

20 km

 25 years from February 2009 Land Tenure

Seremban

 Commercial land – up to 60 years

Sepang Goldcoast

28

KLIA Aeropolis – gateway@klia2 Integrated complex catering for the untapped non-passenger market Satellite Building

Main Terminal Building

Integrated complex

29

KLIA Aeropolis – Mitsui Outlet Park Satellite view

From Plus Highway

Mitsui Outlet Park  Joint Venture Agreement signed on 21st August 2013  Scheduled to open in 1H2015 Mitsui Outlet Park

70%-30% Joint Venture between Mitsui Fudosan & MAHB

60%-40% composition of European / US vs. Asian brands

To KLIA Terminal

Source: MAHB

30

KLIA Aeropolis – Future Development

31

Overseas Ventures

[CLIENT NAME]

Asian Airports Privatization 1990 - 1996

1998-1999

2000-2006

2007-2009

2010-2013

2010 - 2020

Cochin, India

Malaysia

Narita, Japan

Chennai, India

Manila, Philippines

Various, India

Phnom Penh, Cambodia*

Jakarta, Indonesia

Delhi, India

Chubu, Japan

Changi, Singapore

Various, Philippines

Hyderabad, India

Hong Kong, China

Male, Maldives^

Various, China

Mumbai, India

Kolkata, India

Medina, Saudi Arabia

Various, Indonesia

Bangalore, India

Navi Mumbai, India

Istanbul, Turkey

Various, Japan

Yangon, Myanmar

Various, Vietnam

MAHB’s Airport Privatisation involvement

►

Yogyakarta, Indonesia

MAHB has successfully experienced in total five privatisations in Asia, including its own in 1998.

* In July 2005, MAHB disposed its entire 40% stake of Cambodia Airports Management Services Pte Ltd which manages Phnom Penh and Siem Reap Airports for US$3.1m ^ GMIAL (23% associate of MAHB) on 27 November 2012 received a letter issued by the Ministry of Finance and Treasury of Republic of Maldives notifying that the concession agreement dated 28 June 2010 (Agreement) for the rehabilitation, expansion, modernization, operation and maintenance of the Ibrahim Nasir airport concession is void ab initio. MAHB had on 23 June 2014 announced that the arbitration proceeding for this case had been delivered in favor of the MAHB-GMR consortium.

33

Overseas Ventures Long-term earnings growth driver Existing airport investments

Turkey

India

Sabiha Gökçen Int’l Airport

Delhi International Airport

 Total pax: 18.8mmpa (+26.7% yoy growth)

 Total pax: 36.8mmpa (+9.3% yoy growth)

 Equity stake: 20% / 40% (60% post-

 Equity stake: 10%

transaction)  Date invested: Oct 2009 / Apr 2014

 Date invested: April 2006  Equity invested: RM199mm

 Equity invested: RM114mm / RM933mm(1)

Strategy  Airports with high pax growth  Upside potential from  Operational efficiency gains

 Commercial revenue growth  Earnings diversification  Able to deploy MAHB’s expertise to

(RM1,047mm in total)

realize upside potential Turkey

India

India New Hyderabad International Airport  Total pax: 8.7mmpa (+3.9% yoy growth)  Equity stake: 11%  Date invested: March 2008  Equity invested: RM34mm

Source: MAHB Note: All airport pax numbers for year-ended December 31, 2013, yoy growth numbers from 2012; (1) Comprising of €141.5mm for ISG and €67.5mm for LGM for a total of €209mm or RM0.93bn 34

ISG – Overview Overview

Key customers

Location

Concession term

Pegasus and Turkish Air – majority of total traffic

Istanbul (Asia-side) – serves Istanbul and surrounding areas

2008 – 2032  Runway of 45m x 3,000m; 32 to 42 ATM/ hour

 Multi-aircraft parking system

 Highly attractive hinterland – positioned at the Asian-

side of Istanbul, among four most developed industrial cities with highest GDP /capita (in excess of USD 25,000)

Infrastructure

 8 wide body aircrafts (IATA Code E)  16 narrow body aircrafts (IATA Code C)  59 remote park places

Destinations

 Domestic – 36

 International – 96

Traffic

Capacity

Utilization

Passenger

19mm

33mm

58%

Cargo (tons)

33,510

90,000

37%

Source: ISG

35

ISG – Passenger traffic growth Passenger traffic growth International

20

Domestic

Total

18.8

18 16

CAGR of 33.7%

14

Pax (Mil)

14.9 13.7 12.0

11.6

12 10

9.8

9.1 8 6

6.6

7.7

4.4

4.5

4

6.8

2.8 2 0 Domestic International Total

3.9

4.6

5.1

1.6

2.1

2008A

2009A

2010A

2011A

2012A

2013A

2.79 1.57 4.36

4.55 2.09 6.64

7.67 3.93 11.60

9.12 4.57 13.69

9.75 5.12 14.87

12.00 6.80 18.80

Source: ISG

36

ISG – Highly attractive long-term growth story  Highly attractive catchment area  Turkey is the third largest country in Europe with a total population of 74mm, out of

1 Strategic location

2 One of the fastest-growing airports in the world

3 Proven track record of growth and operational efficiency

which 24mm lives in Istanbul and surrounding areas  Center of economic activity in Turkey - 40% of total GDP  Catchment area with highest GDP/capita in Turkey (>USD 25,000)  Regional hub with significant transit capacity  Very large country with few motorways and limited railway  Industrial and residential areas provide a diversified customer base, with further upside potential to be explored with business travelers  Turkey is the 6th most visited country in the world  Turkey is the fastest-growing major European economy  Low air travel penetration and low LCC penetration vs. developed Europe and US  Substantial capacity growth planned by Pegasus and THY – significant order book for

THY and Pegasus with delivery from 2014 onwards  Significant growth potential in further increase non-aeronautical revenues  33.7% Passenger CAGR since 2008  Anticipated significant growth in profitability over the next few years  High quality and stress tested operating performance  Award winning operations – selected as Best Airport in World Low Cost Airline Awards

in 2010 37

ISG – Highly attractive long-term growth story 4 Ataturk airport saturated already 5 International routes to drive future growth 6

Improving landside connectivity

7

Capacity expansion potential

 Ataturk airport capacity already far exceeding design capacity – substantial shifts

expected to ISG  3rd airport not operational until 2019 and will be will be further away – less overlap in catchment area  Consistent increase in market share in Istanbul expected to continue  22 destinations in 2007 to 96 today  Capacity limitations at Ataturk are expected to drive further increases in international

routes and new airlines entering ISG  International pax charges much higher – net EUR13.50/pax vs domestic at EUR3.00/pax  Potential for upward adjustment in tariffs in medium term  New rail projects will reduce travel time from 100 to 40 mins from European side of

Istanbul  A new metro rail link connecting Marmaray(1) and ISG is under construction and is targeting completion in 2015, which will significantly enhance land connectivity and reduce travel time to the Asian side  Government will start the tender process, which will double the runway capacity to

70m pax by 2016  Does not require any capital expenditure by the Company  Terminal capacity will be expanded in line with traffic growth

Source: MAHB and ISG management Note: (1) Rail transport project in Istanbul that comprises an undersea rail tunnel under the Bosphorus Strait, and the modernization of existing suburban railway lines along the Sea of Marmara from Halkalı on the European side to Gebze on the Asian side

38

Rationale 1

Majority stake and increased influence

 Largest shareholder with 60% interest  Become only shareholder that is an airport operator  Company’s strategy to move away from minority stakes  Current advantage of non-consolidation due to high debt, but eventual target to consolidate ISG

asset 2

Increased exposure to an attractive asset 3 Prevents competitor from acquiring stake

4

Platform for further growth

5

Attractive valuation

 Robust long-term growth potential  Further diversifies future earnings, in line with group strategy  Resilient asset resistant to macro shocks

 Strong performance of listed airport stocks in Turkey despite recent turmoil

 Original prospective acquirer – TAV – operates the competing Ataturk airport in Istanbul

 The transaction can open up more opportunities for MAHB in the region as there are several other

potential assets coming up for bidding  Takes into account current financial performance and long term growth prospects  In line with average of European airport M&A transactions  In line with average of trading comparables  Upside potential on profitability upon refinancing current capital structure

Source: MAHB and ISG management

39

Taking it to the Next Level

[CLIENT NAME]

2014 Headline KPI Key Performance Indicators (KPIs)

Actual 2013

Target 2014

Actual June 2014

Profitability* (EBITDA)

RM827.5 mil

RM861.0 mil

RM419.7 mil (48.8% )

25–40 mppa – ranking at no.4

40 mppa : KLIA Ranking Top 5

40 mppa : KLIA Ranking Top 7

Airport Service Quality

*

Without construction profit

41

2014 Headline KPI 

Target passenger growth of 7.0%, above global estimates (IATA: 5.8%; ACI: 4.6%; ICAO: 5.9%)



Asia Pacific has emerged as the strongest performer amongst the key global aviation markets



Optimistic trends - rising business confidence and robust performance in key emerging markets like ASEAN and North Asia



klia2 commenced operation on 2 May 2014:  Strong passenger movements in the LCC market  Enhancements in retail and commercial operations



MAHB to benefit from the entry of new airlines and expansion of local carriers  Malaysia Airlines’ entry into oneworld Alliance - significantly increased the market outreach and breadth of connectivity of KLIA  Expected seat capacity expansion by various airlines  Visit Malaysia Year 2014 – strong tourist Arrivals

42

Taking it to the Next Level Malaysia Airports' New Brand DNA

43

THANK YOU