UMW AR2020

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About Us 7 PILLARS OF PERDANAOurLeadershipStatement Our Performance Creating Value Through Our Strategy Oluptur, ullest lab inctas PILLAR 1 PILLAR 2 PILLAR 3 net eatet erferibeat ut velit, consectistis RATIONALISE UNLOCK DIGITISE accaborenti sunt oditaqu NON- VALUE AND atiorep recerro viditio STRATEGIC OF NON- DIGITALISE tem. Ut fugia ditasinci ASSETS PRODUCTIVE te sunda consecum nimi, ASSETS velesequo volupta quam, qui dem ilibus. Apiti Refocusing of our resources Unlocking the value of our The need of agile technologies quis eos esequun tioste on the enhancement and long-held assets which until and capabilities such as etustius estectem fuga. expansion of UMW’s core now yielded minimal or smart automation and Itatem harcips apidis businesses in segments with low returns – to realise the software-based management doloruptas explit aut high-growth potential – to monetisation of these assets in response to new business alibus dit antia doluptati boost operational efficiency, which can be reinvested in requirements to increase venimi, tem ratem rem reduce cost and streamline new growth businesses. the level of automation, aut volupta dolorias a resources. connectivity and deployment arum eaquis non prest, of big data analytics to geared que sape nos aut qui bere towards boosting connectivity, rem volorum vernam, efficiency and productivity te num ne nestecto con while increasing access to pel ma natur rerovid information to help making a maximinIbustion more informed decision. sequamus rerferum venderum ut arum, sae magnis mo dolut re laut erio eicimintur? Aquiasin nulleculpa cor alique pre lauditin provid quas aris aperferrum B Integrated Annual Report 2020

TRANSFORMATION STRATEGYOurGovernance Financial Statements Other Information PILLAR 4 PILLAR 5 PILLAR 6 PILLAR 7 REVENUE INNOVATION COST HUMAN ELEVATION PLATFORM OPTIMISATION CAPITAL AND SYNERGY STRATEGIC SUPPORT To expand and diversify the range To develop in-house, value-added To optimise our operations Human capital is the most potent of products and services and capabilities which in turn will for maximum output while force in the company that pivots tap into emerging markets, by underpin the Group’s broader maintaining affordable costs our transformation and propels identifying and securing fresh goal to move up the value chain by improving synergies our way forward. Our workforce growth opportunities through and emerge as a maker of its own between capacities and process are required to work with a new verticals as well as segments proprietary products and services. optimisation. We believe that suite of advanced technologies adjacent to our core businesses. technologies can help to reduce which necessitates continuous costs in the long-run, and better upskilling and enhancement of utilisation of our capacities and competencies to apply these assets will help us operate at technologies to improve work higher efficiency. processes. Integrated Annual Report 2020 C

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy About This Report Scope And Boundaries Corporate Book Reporting Period The UMW Holdings Berhad (UMW) Annual Report 2019 is an Integrated Report, INTEGRATED ANNUAL which mainly relates to our Group’s activities and operations for the financial REPORT 2020 year ended 31 December 2019 (FY2019), unless stated otherwise. It provides our stakeholders with valuable insights into our strategies and value-creating activities. SUSTAINABILITY REPORT 2020 Operating Business This report covers the main activities and operations of the Group in Malaysia and In an era of rapid digitalisation, evolving market in countries we operate. This includes all core business segments in Automotive, trends and consumer expectations and growing Equipment, and Manufacturing & Engineering (M&E), unless otherwise stated. sectoral challenges, our business remained resilient. The key driving factor for positive performance Content has been our untiring efforts to optimise our Besides business performance and highlights, this report also includes disclosures organisational and people potential. In 2019, this on Corporate Governance and Financial Statements. This report should be read meant, our continued efforts to find opportunities concurrently with our Corporate Governance Report 2019 and the Sustainability to innovate, build on people capabilities, support Report 2019. Together, they represent UMW’s performance during the year under the communities where we operate and prepare ourselves against the risks of the future. In Reporting Frameworks ‘Optimising Potential’, we also find ways to eliminate Our first Integrated Report is guided by the principles prescribed in the redundancies, improve efficiencies and catalyse new International Integrated Reporting Council (IIRC) framework. We have set a 5-year growth that is meaningful for all our stakeholders. At roadmap for continuously improving and maturing our integrated reporting. UMW, this is ‘Value Creation’. The financial statements have been prepared in accordance with the Malaysian Scan the QR code for more information about Our Annual Report 2020 or log on to https://www.umw.com.my/web/guest/ financial-reports 1 Integrated Annual Report 2020

Our Governance Financial Statements Other Information Content - Financial Review • Financial Highlights About This Report • Five-Year Group Summary Results • Simplified Statements of Financial Position ABOUT US • Segmental Analysis - Our Vision and Mission • Statement of Value Added - Who We Are • 2019 Share Price Movement - Our Core Values - Our Corporate Structure - Delivering Sustainable Practices - Our Reach CREATING VALUE THROUGH OUR STRATEGY OUR LEADERSHIP STATEMENT - Market Review & Outlook - Chairman’s Message - Stakeholder Engagement - President & Group Chief Executive Officer’s Review - Managing Our Material Topics - UMW’s Covid Response - Our Value Creation Model - Our Strategy OUR PERFORMANCE - Key Risk & Mitigation - Business Review OUR GOVERNANCE • Automotive - Board of Directors’ Profile • Equipment - Management Committee’s Profile • Manufacturing & Engineering - Corporate Governance Overview Statement • Others - Additional Compliance Information - Statement on Risk Management & Internal Control - Audit Committee Report FINANCIAL STATEMENTS OTHER INFORMATION - Shareholdings Statistics - Top 10 Properties Held by the UMW Group - Notice of Annual General Meeting - Statement Accompanying Notice of Annual General Meeting - Administrative Guide for 38th Annual General Meeting - Personal Data Protection Notice Proxy Form Integrated Annual Report 2020 2

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy Overview Of UMW Holdings Berhad EQUIPMENT Our Vision To be an innovative global conglomerate with sustainable core businesses. AUTOMOTIVE THE UMW GROUP FOCUSES ON THREE (3) STRATEGIC BUSINESS UNITS MANUFACTURING & ENGINEERING 3 Integrated Annual Report 2020

Our Governance Financial Statements Other Information Our Mission Committed to deliver excellence and sustained value creation for our stakeholders through products and services. Ways of Working, or WOW for short, is the clarion call for UMW employees to pledge their unwavering commitment to this renowned industrial conglomerate. WOW encapsulates three (3) core values: We Are One, We Drive Change and We Deliver Promises. Embracing these three (3) core values will take us to the next level in delivering our roles and responsibilities to the UMW Group. WOW underlines the importance of uniting people and inspiring them to go the extra mile towards exhibiting the spirit of excellence, which leads to success in business. WE ARE •Respect and appreciate each other •Support and make each other better • Collaborate and unite WE DELIVER WE DRIVE • Take ownership of all deliverables •Embrace change • Be accountable for our actions •Try new ways • Continuouslyimprove to maintain •Be quick and decisive sustainable growth Scan the QR code for more information about Our Annual Report 2020 or log on to https://www.umw.com.my/iw/financial-reports Integrated Annual Report 2020 4

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy CHINA Our Reach Equipment Manufacturing & Engineering Automotive MALAYSIA SINGAPORE BRUNEI With an international presence in eight (8) countries in the Asia Pacific region, UMW Group works hand in hand with a network of skilled teams in the Automotive, Equipment, Manufacturing & Engineering sectors, that bring local knowledge into our operations and offers customised solutions to the markets within the region. Our international market includes China, Brunei, Vietnam, Indonesia, Malaysia, Myanmar, Papua New Guinea and Singapore. International Malaysia 8,081 AA2 Presence SINGAPORE Employees RAM 8 BRUNEI CHINA Credit Rating Countries PAPUA NEW GUINEA VIETNAM MYANMAR INDONESIA 5 Integrated Annual Report 2020

Our Governance Financial Statements Other Information PAPUA VIETNAM MYANMAR INDONESIA NEW GUINEA Scan the QR code for more information about Our Annual Report 2020 or log on to https://www.umw.com.my/iw/financial-reports Integrated Annual Report 2020 6

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy Chairman’s Message Dear Valued Stakeholders, WHAT WE ACHIEVE THIS YEAR For 2019, the Group has maintained strong market performance despite GROUP REVENUE an uncertain global economy, the confluence of various regional economic RM11,739.1 MILLION and regulatory factors, and the advent of Industry 4.0 that is bringing sweeping Ut aut quodipsa volenim odiost et qui dollentio del maxim changes to our industry. voloreped que et dolupient am as natescimi, sediatuLignatas res Tan Sri Dato’ Sri NET ASSETS Hamad Kama Piah Che Othman RM3.16 per share Chairman Ut aut quodipsa volenim odiost et qui dollentio del maxim voloreped que et dolupient am as natescimiCatus mi, TRANSFORMATION INTO THE FUTURE The Group continued to be driven by our vision to be an innovative global conglomerate with sustainable businesses and the commitment to deliver excellence and sustained value creation for our stakeholders through products and services. We are at a seminal moment in our industry, marked by rapid technological change, the blurring of traditional boundaries between sectors, new entrants that alter the rules of business and higher customer expectations. The operating landscape has become so fluid and unpredictable that we must 7 Integrated Annual Report 2020

Our Governance Financial Statements Other Information Catur, seri as ditios iumquat esequatiatio et latur molent ipsaere, am fugitatiatem volla vid utat moluptis GOOD GOVERNANCE AND LEADERSHIP As an organisation with a heritage stretching Our efforts in building a competent back more than 100 years, the Board believes workforce will not only lend us a that an effective corporate governance competitive advantage in our future structure and culture is essential for UMW endeavours but will also help us to retain Group to achieve its vision and objectives. the best talent within our business. The Board, management and employees affirm and remain resolute in the Group’s Talent management is a strategic also help us to retain the best talent commitment to enhance shareholder value priority for UMW Group. The Board within our business. De parum aut quo and its overall competitive positioning by consistently reviews the succession que poremquamus exerferum fugitistiis way of upholding the highest standards pipeline of the Senior Management to rest, officiet untist volutempel int quis of corporate governance practices. This ensure the organisation’s leadership ut fugiatius nihiciu scilige ndellanduci includes among others, ethical conduct, is agile to transform. The Group also consequas dem idem incipsam ere business integrity, commitment to values, reviewed the performance rewards sectation porerro ipsam nis eatur mintinc delivering sustainable values and managing system and talent development totatem evellabor aperibus sit, odi dent stakeholders’ expectations. strategies to ensure continued officim usdanist officid itibusa pelluptas relevance and alignment to business ditae pereptatis as re sequam venia In 2019, UMW welcomed two (2) new plans and to nurture a forward- debis autem qui corum as alit, evenist Independent Non-Executive Directors to thinking, progressive, and innovative repellanda que veniminum explita tissunt, the Board. Encik Razalee Amin comes with culture. UMW has been supporting our quam, voles expla endaepu daeperi scitio. extensive experience in audit, corporate employees to adapt to the evolving Nem comni nihit, sitati que volupit recovery as well as banking and finance industry requirements with the help restinciis et minihil itatemporent alique prior to joining UMW. Dato’ Seri Prof. Dr. of various incentives and training nobitat et omnis nobis in cone por atur, Ir. Zaini Ujang’s renowned expertise and programmes. Our efforts in building a volupidi beat. achievements in the field of environmental a competent workforce will not only engineering and science will significantly lend us a competitive advantage add to the Board’s insight on the Group’s in our future endeavours but will Innovation, Research & Development (R&D) and sustainability efforts. I have a strong belief that our new Board members will help to steer the Group forward. Integrated Annual Report 2020 8

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy President & Group Chief Executive’s Review MANUFACTURING & ENGINEERING STRATEGIC BUSINESS UNITS Dear Valued Stakeholders, UMW understands that we RM1,062.5 MILLION have a responsibility to our stakeholders to optimise FINANCIAL RESULTS returns from the prevailing economic cycle. Amidst Group revenue increased by a challenging business 3.4% to RM11,760.2 million and environment, we took PBT stood at RM741.2 million in 2019 compared to RM625.1 Encik Azmin Che Yusoff million in 2018. Performance was President & boosted by higher sales in the Group Chief Executive Officer Automotive and Manufacturing & Engineering (M&E) businesses, as AUTOMOTIVE STRATEGIC well as strategic cost optimisation BUSINESS UNITS initiatives. Revenue UMW continued to command the local automotive market RM9,295.9 MILLION with Toyota, Lexus and Perodua. Despite intense competition and EQUIPMENT STRATEGIC modest Total Industry Volume BUSINESS UNITS (TIV) growth, the Group’s combined market share increased Revenue from 49.1% in 2018 to 51.4% in 2019, as new models introduced during RM1,408.2 MILLION the year were warmly received by the market. The Automotive 9 Integrated Annual Report 2020 segment’s revenue increased by 3.9% to RM9,295.9 million. PBT however, declined by 3.6% to RM530.3 million, mainly due to a higher depreciation expense, following the commencement of operations of our Bukit Raja Plant in late 2018. Following the demand softness in some of its pertinent sectors, the Equipment segment’s revenue

Our Governance Financial Statements Other Information Ur aperest iusamus, cus dolorer epudae volum sit aut quodige nempell aboruption elessi volestiunt rerum voluptatis evenest at qui ium quae. of RM1,408.2 million in 2019 was 8.5% lower than 2018. The segment’s PBT of RM197.5 million in 2019 was RM37.4 million higher than 2018, mainly due to a RM61.8 million one-off gain on disposal of land and buildings in 2019. The M&E segment’s revenue increased by 26.0% or RM219.3 the Hilux were the top three selling Toyota models in 2019, million to RM1,062.5 million from RM843.2 million in 2018. accounted for over 70% of sales. UMWT’s market share increased Meanwhile, inclusive of a RM65.5 million gain on disposal of to 11.6%, with a higher number of vehicles sold compared to the land and buildings, the segment’s PBT increased by RM104.9 previous year. Sales of Perodua vehicles topped the charts for million to RM126.4 million in 2019. The improved operating another year at 240,341 vehicles sold, as customers favoured performance was due to a higher volume of fan cases delivered affordability and fuel-efficiency offered by the brand. The new by its Aerospace sub-segment as well as higher sales of key Perodua Aruz was well received by the market with 30,115 units products in the Auto Components and Lubricants businesses. sold in 2019. Efforts to improve efficiencies and reduce redundancies in its operations further contributed to the surge in PBT. Equipment STRATEGIC PROGRESS & OPERATIONAL HIGHLIGHTS In the Equipment segment, overall performance was affected by the challenging demand for heavy equipment in Malaysia Automotive and in other regions. The Industrial Equipment operations in Malaysia and Vietnam maintained their growth momentum; Our focus in the Automotive segment remained on increasing having successfully secured major new contracts and renewed localisation and expanding our Complete Knock Down (CKD) key rental contracts in 2019. The Heavy Equipment operations model offering at a more competitive price. For UMW Toyota in Papua New Guinea, however, managed to capitalise on Motor (UMWT), the assembly plant in Bukit Raja - completed at increasing demand in the construction and mining sectors and the end of 2018 - is a key part of this CKD/localisation strategy. recorded a growth in revenue. The plant rolled out its first batch of vehicles, the all-new Toyota Vios in January 2019, followed by the all-new Toyota Yaris in April 2019. The locally assembled Vios and Yaris, together with Integrated Annual Report 2020 10

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy UMW’s Covid Response UMW GROUP’ STRATEGIC BUSINESS UNITS AUTOMOTIVE EQUIPMENT HOW WE RECOVER HOW WE PREPARE HOW WE RESPOND Beaquatem volum quuntur aut qui unt, cor millabore Beaquatem volum quuntur aut qui unt, cor millabore expeditibus ulliciundi rae provit experum quas archit expeditibus ulliciundi rae provit experum quas archit ipidebisi dolorrum beatquundi conserciis ut maximin pa ipidebisi dolorrum beatquundi conserciis ut maximin pa vero voluptum as magnam iunturiore soluptur, et lab int vero voluptum as magnam iunturiore soluptur, et lab int ut ullaborrore nes. ut ullaborrore nes. At estrum consequi odit am lautes rerum quo ento blacest At estrum consequi odit am lautes rerum quo ento blacest incidis nitat quia iur adis pratibus auda cus, unt moluptata incidis nitat quia iur adis pratibus auda cus, unt moluptata qui sumquid endandunto ex eos quossim olorect asimus, qui sumquid endandunto ex eos quossim olorect asimus, eatures edipsunt, earume nati id et apellaut volorer eatures edipsunt, earume nati id et apellaut volorer nations erfero illam. nations erfero illam. qui rest excessed magnienda venti as eatent reperup qui rest excessed magnienda venti as eatent reperup tatibusci imolenient accus quatet vollor abores consequ tatibusci imolenient accus quatet vollor abores consequ ossunt, site estrum entius delisqui natiis moluptatur rem ossunt, site estrum entius delisqui natiis moluptatur rem atur, quaspient re est volestinctam vel ipiti nienis nonsend atur, quaspient re est volestinctam vel ipiti nienis nonsend ucillupta dentus.soluptur, et lab int ut ullaborrore nes. ucillupta dentus.soluptur, et lab int ut ullaborrore nes. 11 Integrated Annual Report 2020

Our Governance Financial Statements Other Information MANUFACTURING OTHERS & ENGINEERING Beaquatem volum quuntur aut qui unt, cor millabore Beaquatem volum quuntur aut qui unt, cor millabore expeditibus ulliciundi rae provit experum quas archit ipidebisi expeditibus ulliciundi rae provit experum quas archit ipidebisi dolorrum beatquundi conserciis ut maximin pa vero voluptum dolorrum beatquundi conserciis ut maximin pa vero voluptum as magnam iunturiore soluptur, et lab int ut ullaborrore nes. as magnam iunturiore soluptur, et lab int ut ullaborrore nes. At estrum consequi odit am lautes rerum quo ento blacest At estrum consequi odit am lautes rerum quo ento blacest incidis nitat quia iur adis pratibus auda cus, unt moluptata incidis nitat quia iur adis pratibus auda cus, unt moluptata qui qui sumquid endandunto ex eos quossim olorect asimus, sumquid endandunto ex eos quossim olorect asimus, eatures eatures edipsunt, earume nati id et apellaut volorer nations edipsunt, earume nati id et apellaut volorer nations erfero erfero illam. illam. qui rest excessed magnienda venti as eatent reperup tatibusci qui rest excessed magnienda venti as eatent reperup tatibusci imolenient accus quatet vollor abores consequ ossunt, site imolenient accus quatet vollor abores consequ ossunt, site estrum entius delisqui natiis moluptatur rem atur, quaspient estrum entius delisqui natiis moluptatur rem atur, quaspient re est volestinctam vel ipiti nienis nonsend ucillupta dentus. re est volestinctam vel ipiti nienis nonsend ucillupta dentus. soluptur, et lab int ut ullaborrore nes. soluptur, et lab int ut ullaborrore nes. Integrated Annual Report 2020 12

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy Business Review EQUIPMENT MANUFACTURING & ENGINEERING AUTOMOTIVE UMW’s market share increased from 49.1% in 2018 to 51.4% in 2019 due to higher number of vehicles sold. A total of 310,350 units were sold by the Automotive segment, which translates to a 5.6% increase from 2018. Revenue grew from RM8,946.7 million to RM9,295.9 million from FY2018 to FY2019, while PBT fell from RM550.0 million to RM530.3 million. ABOUT US UMW Toyota Motor Sdn Bhd (UMWT) is the sole distributor of Toyota and Lexus models in Malaysia. We have a longstanding partnership with Toyota Motor Corporation, Japan, where we assemble and market their vehicles. We are also the single largest shareholder of Perusahaan Otomobil Kedua Sdn Bhd (Perodua), Malaysia’s top homegrown carmaker.Itam elitat. Ut maximag nissum res escimus ventotatem et plandunt, tem et verae omnihillab ium que nis volores aut etur aut videbitatem. Ut dionsequidus sime eume natur, sa exeri quatasperiam harum sanit quis a core 13 Integrated Annual Report 2020

Our Governance Financial Statements Other Information Revenue 2018 8,946.7 2019 9,295.9 RM9,295.9 MILLION 2018 550.0 2019 530.3 Profit Before Tax RM530.3 MILLION Integrated Annual Report 2020 14

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy Business Review EQUIPMENT MANUFACTURING & ENGINEERING AUTOMOTIVE Our Equipment Division recorded a profit before tax of RM197.5 million* in 2019 as compared to RM160.1 million in the previous year. This profit was derived from the revenue of RM1,408.2 million compared to RM1,539.6 million in 2018. 2019 operating results was driven by the Industrial Equipment sub-segment which continued to show growth ABOUT US UMW is a distributor of heavy, industrial and power equipment of internationally renowned brands covering a wide range of industries, across seven (7) Asia-Pacific countries, namely Malaysia, China, Brunei, Singapore, Vietnam, Myanmar and Papua New Guinea.Vitio. Ita nimaxim inumquo te nimo volupicimet aborest, cum elecea pro veribusam expelectus. In comnis remod qui debistr umenimus voluptia volo doloreh enihill aciisquas maio de endelic tem facerum ius re sitis eum que inctia dolut facculp ariation peliciis re, ipicit mod eatur ma dolorem. Nam veliquaernam lis consero omnis aut am eum, alitasi nulloratem eumquatur as ent accullacid 15 Integrated Annual Report 2020

Our Governance Financial Statements Other Information Revenue 2018 8,946.7 2019 9,295.9 RM9,295.9 MILLION 2018 550.0 2019 530.3 Profit Before Tax RM530.3 MILLION Integrated Annual Report 2020 16

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy Group Overview SHAREHOLDERS’ FUNDS (RM MILLION) FIVE-YEAR GROUP SUMMARY RESULTS REVENUE* (RM MILLION) 14,441.6 10.436.8 11,066.6 11,303.6 11,739.1 6,584.5 4,718.5 3,047.2 3,344.6 3,696.4 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 NET ASSETS PER SHARE PROFIT/(LOSS) BEFORE ZAKAT AND TAXATION* (RM) (RM MILLION) 5.64 269.7 4.04 (282.1) 2.61 2.86 266.6 3.16 800.3 754.8 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 PROFIT/(LOSS) FOR THE YEAR* BASIC EARNINGS/(LOSS) PER SHARE* (RM MILLION) (SEN) 269.7 266.6 269.7 800.3 (282.1) 754.8 266.6 (282.1) 800.3 754.8 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 17 Integrated Annual Report 2020

Our Governance Financial Statements Other Information FIVE-YEAR GROUP SUMMARY RESULTS 2016* 2017* 2018* 2019* 2020 RM’000 RM’000 RM’000 RM’000 RM’000 Year Ended 31 December 14,441.6 10,436.8 11,066.6 11,303.6 11,739.1 OPERATING RESULTS 269.7 (282.1) 266.6 800.3 754.8 Revenue 2.2 2,293 144.9 676.2 646.1 Profit/(Loss) Before Zakat and Taxation (37.2) 11,870 35.3 515.4 447.2 Profit/(Loss) for the Year Profit/(Loss) Attributable to Equity Holders 6,584.5 4,718.6 3,047.2 3,344.6 3,696.4 of The Company 18,225.3 16,286.4 10,095.7 10,758.0 11,134.7 OTHER KEY FINANCIAL POSITION 8,841.4 9,422.2 5,917.3 5,043.6 5,036.6 Shareholders’ Funds Total Assets (3.2) (45.9) 3.1 44.1 38.3 Total Liabilities 20.0 - - 7.5 6.0 5.64 SHARE INFORMATION 4.04 2.61 2.86 3.16 Per Share 7.87 – Earnings/(Loss) (Basic) (Sen) 9,194.5 4.57 5.20 5.47 4.49 – Gross Dividend (Sen) 5,339.1 6,075.2 6,390.6 5,245.6 – Net Assets Per Share (RM) (0.6) Share Price Information 1.5 (9.5) 0.9 16.1 12.7 – Share Price at Year End (RM) (1.7) 2.6 7.4 6.8 – Market Capitalisation as at Year End 64.1 92.6 66.1 40.0 49.6 41.2 FINANCIAL RATIOS - - 15.0 12.0 Return on Shareholders’ Funds (%) 2.1 - - Return on Total Assets (%) >100 - - 1.3 1.1 Debt Equity Ratio (%) 17.0 15.7 Dividend Rate – Gross (%) Dividend Yield (%) Dividend Payout Ratio# # The Group’s dividend policy is for all its subsidiaries to declare and pay at least 50% of the subsidiary’s net profit as dividends, unless funds are required for capital expenditure or investment purposes. Similarly, the Company has a dividend policy of paying at least 50% of its net profit attributable to shareholders after excluding unrealised profits and after taking into account any significant capital expenditure or Group expansion plan. * The financial results have excluded discontinued operations to arrive at amounts shown in the consolidated statement of comprehensive income. Integrated Annual Report 2020 18

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy Delivering Sustainable Practices At UMW, our motivation for engineering sustainable business is to continually harness our long-term growth potential and demonstrate commitment to enrich the lives of all the stakeholders connected to the Group. UMW is determined to maintain leadership in the automotive 19 Integrated Annual Report 2020

Our Governance Financial Statements Other Information VISION Our Sustainability Approach TO BE AN INNOVATIVE Sustainability is the supporting foundation for the Group’s overarching GLOBAL CONGLOMERATE vision to be an innovative global conglomerate with sustainable core WITH SUSTAINABLE CORE businesses. Four sustainability pillars guide us in delivering excellence BUSINESS and sustained value creation for our stakeholders. The sustainability framework and four pillars are visualised below. MISSION COMMITTED TO DELIVER Building Sustainability Through Excellence. EXCELLENCE AND SUSTAINED What does it mean to UMW? VALUE CREATION FOR OUR STAKEHOLDERS THROUGH Innovative & PRODUCTS AND SERVICES High Full disclosure on our sustainability progress Performance and performance for FY2019 is available in the Culture UMW Sustainability Report 2019. We publish an annual sustainability report in accordance Dynamic BUILDING Environmental with the Global Reporting Initiative (GRI) Workforce SUSTAINABILITY Stewardship Standards: Core Option as well as Bursa Malaysia Securities Berhad’s Main Market THROUGH Listing Requirements on Sustainability EXCELLENCE Reporting. Nurturing the Community This Sustainability Statement is a concise High-performance culture of promoting efficiency, embracing R&D and summary of the sustainability report and prolific use of technology. Focus on challenging the status quo with an it covers the Malaysian-based operations innovative mindset. of UMW’s three core businesses in which the Group has management control, Highly-motivated employees who are a force that stimulates change and namely Automotive, Equipment and M&E. inspires progress. Focus on providing excellence in everything that we do. Information covers the financial year ending 31 December 2019. Respect for our natural resources and environment through efficient management of resources. The full Sustainability Report 2019 is available at our website at www.umw.com.my Nurturing the community. A responsible corporate citizen that contributes to the communities that we operate in. Scan the QR code for more information about Our Sustainability Report or log on to https://www.umw.com.my/web/guest/sustain-report Integrated Annual Report 2020 20

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy Our Value Creation Model VALUE ADDED BY UMW INPUT CAPITALS VALUE CREATION PROCESS Financial • Optimal capital structure AUTOMOTIVE Capital • Access to capital Assemble, market and distribute local and • Prudent investment review process international auto vehicles across Malaysia. Intellectual • Systems and processes EQUIPMENT Capital • Digitalisation system and processes Distribute heavy equipment and industrial • Skilled, experienced and technically qualified equipment to a wide range of industries in various markets within the region. employees Manufactured • High-Value Manufacturing (HVM) MANUFACTURING & ENGINEERING Capital Park in Serendah Designs and manufactures auto components, lubricants and aerospace • New automotive assembly plant in products. Bukit Raja 7 PILLARS OF PERDANA • Wide distribution/after-sales network TRANSFORMATION STRATEGY 1. RATIONALISE NON-STRATEGIC ASSETS Human • High-Performance culture Capital • Robust talent development programme 2. UNLOCK VALUE OF NON-PRODUCTIVE ASSETS • Opportunity for continuous development 3. DIGITISE & DIGITALISE Natural • Fossil fuel Capital • Solar 4. REVENUE ELEVATION • Water 5. INNOVATION PLATFORM Social And • Principals and business partners Relationship • Suppliers and customers 6. COST OPTIMISATION & SYNERGY Capital • Investors • Employees 7. HUMAN CAPITAL STRATEGIC SUPPORT • Communities • Government agencies/authorit 21 Integrated Annual Report 2020

Our Governance Financial Statements Other Information VALUE CREATED FOR UMW AND OUR STAKEHOLDERS WHILE DELIVERING FINANCIAL VALUE CREATED FOR OUR STA KEHOLDERS MANAGING OUTCOMES FOR UMW KEY RISK RETURN ON EQUITY FINANCIAL CAPITAL • Shareholders • Achieved 6.0 sen dividend per share • Analyst & Fund Competition 10.3% • Paid RM75.9 million of dividend Managers Portfolio TOTAL REVENUE* INTELLECTUAL CAPITAL • Customers Political/ • Launched CARA app offering all-in-one forklift Change In RM11,739.1 Government services and solutions Policies million • Offered innovative car financing solutions for customers NET PROFIT* MANUFACTURED CAPITAL • Principal • Reduced complaints of defect products Partners RM646.1 • Increased in operating efficiency • Customers million HUMAN CAPITAL • Developed highly skilled employees • Employees NET ASSETS PER SHARE • Increased productivity level • Improved in employee engagement RM3.16 Information RETURN ON NATURAL CAPITAL • Environment Security • Generated 1.34% energy from renewable sources • Local SHAREHOLDERS’ FUNDS* (solar panels) Communities 12.7% • Recycled 43,930.0m3 of water EARNINGS PER SHARE* SOCIAL AND RELATIONSHIP CAPITAL • Local • Provided communities with access to clean Communities 38.3 sen water through Water, Sanitation and Hygiene • Government (WASH) programme (in collaboration with Environmental MERCY Malaysia) • Introduced Science, Technology, Engineering and Mathematics (STEM) programmes to secondary and primary schools Integrated Annual Report 2020 22

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy Board Of Directors’ Profile TAN SRI DATO’ SRI HAMAD KAMA PIAH CHE OTHMAN Group Chairman, Non-Independent Non-Executive Director Nationality: Malaysian 10/10 Age/Gender: 68/Male Date of Appointment: 1 January 2017 Board Meetings Attended: Relevant Experience: Served Permodalan Nasional Berhad (PNB) since 1979 until his retirement as the President & Group Chief Executive Officer on 30 September 2016. Throughout his corporate career, he had also served on various boards of Malaysia’s largest corporations, among others, as Deputy Chairman of Sime Darby Berhad, Chairman of Chemical Company of Malaysia Berhad, i-Berhad and various public listed and private companies. During his illustrious career spanning more than 40 years, he had been involved in various facets of PNB’s operations, including investment and portfolio management, real estate investment and management, corporate finance and restructuring, as well as unit trust management. BADRUL FEISAL ABDUL RAHIM President & Group Chief Executive Officer/Executive Director Nationality: Malaysian 10/10 Age/Gender: 50/Male Date of Appointment: 1 October 2015 Board Meetings Attended: Relevant Experience: Held various senior positions in UMW before appointed as the President & Group Chief Executive Officer in October 2015. Prior to UMW, he had been involved in the senior management and directorship of established organisations such as Khazanah Nasional Berhad (Khazanah), PROTON, LOTUS and the DRB- Hicom Group of companies. He acquired vast corporate and operational experience through manning responsibility over Khazanah’s key subsidiaries, among others, Tenaga Nasional Berhad, Malaysian Technology Development Corporation, Commerce Asset-Holdings Berhad (now known as CIMB Group) and UEM Group. 23 Integrated Annual Report 2020

Our Governance Financial Statements Other Information TAN SRI HASMAH ABDULLAH 7/10 Senior Independent Non-Executive Director Nationality: Malaysian Age/Gender: 69/Female Date of Appointment: 2 September 2013 Board Meetings Attended: Relevant Experience: Formerly the Chief Executive Officer and Director- General of the Inland Revenue Board (IRB), she had a distinguished career with IRB spanning over 37 years. At IRB, she had led the Malaysian delegation to various international conferences and represented Malaysia on the Management Committee of the Commonwealth Association of Tax Administrators in London from 2007 to 2009. Under her leadership, IRB was awarded the inaugural Prime Minister’s Innovation Award in 2009 in recognition for the vast improvements and innovations introduced to the tax-paying public. She was also a Tax Advisor to PricewaterhouseCoopers Taxation Services Sdn Bhd and a Commission Member of the Securities Commission of Malaysia. DATO’ ESHAH MEOR SULEIMAN 10/10 Independent Non-Executive Director Nationality: Malaysian Age/Gender: 65/Female Date of Appointment: 17 October 2016 Board Meetings Attended: Relevant Experience: Began her career with Public Service in 1981 as the Assistant Director, Macro Economic Section, at the Economic Planning Unit of the Prime Minister’s Department before serving as the Assistant Secretary at the Government Procurement Management Division, Ministry of Finance (MOF) in 1991. During her tenure in MOF, she held various key positions, including as Principal Assistant Secretary, Deputy Under Secretary and Under Secretary of Investment, Minister of Finance (Incorporated) and the Privatisation Division of MOF. In January 2014, she was assigned as the Under Secretary of Statutory Bodies Strategic Management Division of MOF prior to her retirement on 1 November 2014. Integrated Annual Report 2020 24

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy STAKEHOLDERS Corporate Governance Overview Statement We believe high This CG Statement is to be read together BOARD OF DIRECTORS standards of with the Corporate Governance Report 2019 governance and (CG Report 2019) which is accessible to the Audit Committee transparency are public at our corporate website at www.umw. essential com.my. This CG Statement should also be Investment Committee read in tandem with the Statement on Risk The Company is fully committed to protect Management and Internal Control (SORMIC) Risk Management Committee the interests of all its stakeholders by and the Audit Committee Report (AC Report). conforming to good corporate governance Nomination & Remuneration Committee practices, including greater transparency and As a testament of our steadfast commitment sustainable disclosure. This commitment is in upholding the highest level of corporate Integrity and Whistle-Blowing Committee translated into a corporate culture that is governance, the Company was ranked at 11th (previously known as Whistle-Blowing manifested across the Group, from the Board place for “Top 100 Companies for Corporate Committee) to the Senior Management and all employees Governance Disclosure” at the MSWG- across the Group. This compliance culture ASEAN Corporate Governance Awards held FLAGSHIP BOARDS fosters the Board and employees alike to in 2019 and was accorded with the “Excellence embrace professional business ethics and Award for CG Disclosure”. As at 31 December PGCEO Management to be self-adherent to internal and external 2019, the Board has adopted and applied all Committee requirements. recommendations of the MCCG 2017, except for the following – Automotive Equipment In view thereof, we are pleased to present, our application of the principles and Practice 4.1 M&E Others recommendations of the MCCG 2017 (CG The Board comprises a majority of independent Statement) during the year under review. directors. Practice 12.3 Facilitating voting in absentia via electronic means. 25 Integrated Annual Report 2020

Our Governance Financial Statements Other Information STAKEHOLDER ENGAGEMENT eum adit, soluptatae eseque eos abo. Fuga. KEY SHAREHOLDER EVENTS Inctemp orehentio inctur, essundes vitae con THROUGHOUT THE YEAR Employee engagement niendes tintet, es magniam, cor andenis reic tem aute la velitas pellabor rehendent. Q1 Pe poremolum, cus explaces consent acerio. Evel eos quia sum exerum faccum elent ut Ur, utem ilia conseri busapiendae pore la quis ommo volorrovit quat et vollupt atibeatur • F ull year 2018 results eliscit que conse aut id eici as et quaeriam rem molorpor aboreius, consequo que lit rem quae presentation cor aut quae vitatur? Officil magnita quatur volore nonem voloritio comnimustiur magnat. simperit lam dist re comnim acea ipiet adi ut Electa dollescius accabor sam, que sit aligent • S invelia volorum rro volenda moluptae volest vollaud aepudis quas aute nos quae quas magnatem ullaborera dem aut dandelesto consequi ut experum doloressunt aut odis ellent eostem enducil lestis experitibus et maio corrunduntia arita simus aut aut et facidias que miligni dolo niae rem eum adi di volenimi, unt etusdam es • B is autectiunt esequam errum volorest, natem niet voluptur? Vid que cum, et same dolo tet recus reproreris sinveli tatquis cumquiam adis quiatem. lis eliquam int rest, volupta non con nonsequi aborem ipsum eossimus dit etur Occusamusa autae erum qui cullaccus ditatur aditiandunt voluptas doluptatem quam apis de voles que Q2 erspelendic totatet, eratiore porpost vel ilibus. lignati bustion sedisque eaquam, • Annual General Meeting of • Dsuga. Inctemp orehentio inctur, essundes Con et dus autetur sam quatempedit, ut Shareholders vitae con niendes tintet ereribus alibusdaeped maximil lignihiti cum • Lucilignit eum adit, soluptatae eseque et aut laccabo rporemporia voloreperum • o lorum quam halendae ipien estotam hitis invellorro berum nost optatur imoventiur, ipiet ehenqui ut eos abo. Fuga. Inctemp orehentio inctur, eicipid moluptat vid undiorepe sam, quiae essundes vitae con niendes tintet, iducilignit volupie ndipicia estibus nonetur? Quia • B is autectiunt esequam errum eum adit, soluptatae eseque. voluptae nusam, occum nonet pa natiunt. cumquiam adis quiatem. • Magniam, cor andenis reic tem aute la velitas andebis iur sundiatem quiatum qui que vel is pellabor rehendent. necturem et ommodit accaere sequis moleni Q3 cus voluptatus as voluptianda int ant vit, Abo. Rum di repudae comnihit am utendendem • Half year results presentation et ipis id quis nulpa volor a sam, sequos vendus, • V volorum quam hariorro volum laboratis aute pelendam iducilignit volendae ipieipiet re corehen INVESTOR MEETINGS dandelesto consequi ut • B is autectiunt esequam errum Site Thailand Myanmar Generalist Myanmar cumquiam adis quiatem. visit 22% 20% institution 31% 1% 23% Q4 BY LOCATION BY TYPE • N is sinvelia volorum quam OF hariorro volendae ipienimodi 57% 3% ventiur, ipiet re corehen Singapore INVESTOR Broker dandelesto consequi ut 43% • B is autectiunt esequam errum Private cumquiam adis quiatem. wealth Integrated Annual Report 2020 26

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy Statement on Risk Management & Internal Control BOARD’S RESPONSIBILITY Committee (RMC) and the Audit Committee year under review and regularly appraised by (AC), which comprise Board members. the Board. The Board affirms its commitment and responsibility for the Group’s risk management The risk management and internal control The Board recognises that these systems are and internal control systems covering not systems are designed to meet the Group’s designed to manage and mitigate, rather than only financial controls but also strategic, particular needs, to efficiently and effectively eliminate the risk of not achieving the Group’s operational, organisational, and compliance manage risks that may impede the business and corporate objectives within the controls, and for reviewing the adequacy, achievement of its business objectives, and risk appetite established by the Board and effectiveness and integrity of these systems. to provide information for accurate reporting management. These systems can therefore and ensure compliance with regulatory and provide only reasonable and not absolute Implementations of these systems are statutory requirements. assurance against material misstatement, loss undertaken by the management which or fraud. The Group’s concept of reasonable regularly reports on risks identified along with The process for the identification, evaluation, assurance also recognises that the cost of actions taken to mitigate and/or minimise monitoring and managing of significant risks control procedures should not exceed the such risks. The oversight of these critical that may materially affect the Group’s business expected benefits. areas is carried out by the Risk Management objectives has been in place throughout the 27 Integrated Annual Report 2020

Our Governance Financial Statements Other Information UMW recognises RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK its roles in The realisation of Risk Management & Internal Control Systems is undertaken by maintaining a management. Regular reports on risks identified and actions taken to mitigate and/or sound system of minimise such risks and gaps in the internal control systems, if any, are presented to the risk management RMC and AC and ultimately to the Board. and internal The key features of these systems are the three lines of defence with established and clear control within functional responsibilities and accountability for the management of risks and internal the Group. controls. Through its Board of Board Directors (Board), UMW BOARD COMMITTEES is committed to continue First Line of Second Line of Third Line of upholding and Defence Senior Defence Risk Defence Internal implementing Management Management, a strong Compliance Audit governance & Integrity culture and environment Functions for the proper conduct of the THREE LINES OF DEFENCE CONTROL ASSURANCE Group’s business operations. Own, manage and Coordinate, Provide control risk by facilitate and independent oversee the assurance on the implementation of effectiveness effectiveness necessary internal of the risk of the risk control management and management and internal control internal control activities activities Integrated Annual Report 2020 28

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy Directors’ Report The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Company for the financial year ended 31 December 2020. PRINCIPAL ACTIVITIES The Company is an investment holding company. The principal activities of the subsidiaries, joint ventures and associates are disclosed in Notes 38 to 40. RESULTS Profit for the year Group Company Attributable to: RM’000 RM’000 Equity holders of the Company Non-controlling interests 628,737 172,845 Profit for the financial year 454,444 103,186 69,659 69,659 104,634 – 628,737 172,845 There were no material transfers to or from reserves or provisions during the financial year, other than as disclosed in the financial statements. In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature other than as disclosed in the financial statements. DIVIDEND RM’000 46,732 The amounts of dividend paid by the Company since 31 December 2018 were as follows: 29,207 In respect of the financial year ended 31 December 2019: Interim tax exempt (single-tier) special dividend of 8.0%, on 1,168,293,932 ordinary shares, declared on 28 November 2019 and paid on 23 December 2019. In respect of the financial year ended 31 December 2018: Final tax exempt (single-tier) dividend of 5.0%, on 1,168,293,932 ordinary shares, declared on 27 February 2019 and paid on 16 May 2019. 29 Integrated Annual Report 2020

Our Governance Financial Statements Other Information DIVIDEND (CONT’D.) A final single-tier dividend in respect of the current financial year of 4.0% or 2.0 sen per share amounting to a net dividend payable of approximately RM23.4 million was declared on 27 February 2020. The dividend was paid on 31 March 2020 to shareholders whose name appeared in the Record of Depositors as at close of business on 16 March 2020. The financial statements for the current financial year do not reflect this dividend. The dividend will be accounted for in the shareholders’ equity as an appropriation of retained profits in the financial year ending 31 December 2020. DIRECTORS OF THE COMPANY The names of the directors of the Company in office since the beginning of the financial year to the date of this report are: Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman# Badrul Feisal bin Abdul Rahim# Tan Sri Hasmah binti Abdullah Dato’ Eshah binti Meor Suleiman Datin Paduka Kartini binti Hj Abdul Manaf Salwah binti Abdul Shukor Dr. Veerinderjeet Singh a/l Tejwant Singh Lim Tze Seong Razalee bin Amin (appointed on 1 September 2019) Dato’ Seri Prof. Dr. Ir. Zaini bin Ujang (appointed on 1 November 2019) Dato’ Siow Kim Lun @ Siow Kim Lin (retired on 23 May 2019) Khalid bin Sufat (retired on 1 September 2019) Mohd Shahazwan bin Mohd Harris (resigned on 31 August 2019) # Directors of the Company and certain of its subsidiaries DIRECTORS OF THE COMPANY’S SUBSIDIARIES The name of directors of the Company’s subsidiaries since the beginning of the financial year to the date of this report excluding those who are already the directors of the Company, are: Akira Naito Akio Takeyama Anas Nasrun bin Mohd Osman Anuar bin Abd Ani Azmin bin Che Yusoff Baishali Buragohain Chai Yet Von Cheow Lip Heng Integrated Annual Report 2020 30

About Us Our Leadership Statement Our Performance Creating Value Through Our Strategy CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 Assets Note 2020 2019 Non-current assets RM’000 RM’000 Property, plant and equipment Investment properties 4 2,701,692 2,820,924 Land use rights Leased assets 5 170,768 220,901 Right-of-use assets Investments in joint ventures 6 Investments in associates Deferred tax assets 7 357,947 336,673 Other investments Receivables 8 195,260 – Current assets 10 54,870 48,627 Other investments Derivative assets 11 1,866,512 1,792,383 Inventories Receivables 12 135,160 131,951 Tax recoverable Deposits, cash and bank balances 13 5,991 7,106 Assets held for sale 16 – 32,136 Total assets 5,488,200 5,391,169 13 1,071,881 1,133,856 14 5,598 7,613 15 1,589,567 1,548,507 16 1,449,073 1,076,563 5,003 6,841 17 1,472,111 1,311,764 5,593,233 5,085,144 18 53,240 281,682 5,646,473 5,366,826 11,134,673 10,757,995 31 Integrated Annual Report 2020

Our Governance Financial Statements Other Information CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AS AT 31 DECEMBER 2019 Note 2020 2019 RM’000 RM’000 4 Continuing operations 5 2,701,692 2,820,924 Revenue 6 170,768 220,901 Other operating income 7 Changes in inventories 8 357,947 336,673 Finished goods purchased 10 195,260 – Raw materials and consumables used 11 Employee benefits 12 54,870 48,627 Depreciation and amortisation 13 1,866,512 1,792,383 Other operating expenses 16 Profit from operations 135,160 131,951 Finance costs 5,991 7,106 Investment income – 32,136 Share of results of associates and joint ventures Profit before zakat and taxation Zakat Income tax expense Profit from continuing operations, net of tax Discontinued operations 5,488,200 5,391,169 Loss from discontinued operations, net of tax Profit for the year 13 1,071,881 1,133,856 Other comprehensive income/(loss) 14 5,598 7,613 Other comprehensive income/(loss) to be reclassified to profit or loss in subsequent 15 1,589,567 1,548,507 periods: 16 1,449,073 1,076,563 Exchange differences on translation of foreign operations Share of other comprehensive income of associates 17 5,003 6,841 Fair value loss on cash flow hedge 1,472,111 1,311,764 Transfer of reserve of foreign subsidiary companies to profit or loss upon disposal 18 5,593,233 5,085,144 Other comprehensive loss for the year, net of tax Total comprehensive income for the year 53,240 281,682 5,646,473 5,366,826 Profit for the year attributable to: 11,134,673 10,757,995 Equity holders of the Company Holders of Perpetual Sukuk Non-controlling interests Integrated Annual Report 2020 32

UMW Holdings Berhad 198201010554 (90278-P) Menara UMW Jalan Puncak, Off Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Telephone : +603 2025 2025 Facsimile : +603 2025 2029 umw.com.my