MMC Berhad : Revenue Jumps to RM1.28 Billion

FOR IMMEDIATE RELEASE

MMC CORPORATION BERHAD REVENUE JUMPS TO

RM1.28 BILLION

KUALA LUMPUR, 28 May 2018 - MMC Corporation Berhad (MMC or the Group), a premier utilities and infrastructure group recorded a RM1.28 billion in revenue for the financial period ended 31 March 2018, a 38.3% increase from RM925 million reported in the corresponding quarter of the preceding financial period due to work progress from Klang Valley Mass Rapid Transit Sungai Buloh-Serdang-Putrajaya Line (KVMRT-SSP Line) and Langat Sewerage Treatment project as well as higher volume handled at Pelabuhan Tanjung Pelepas (PTP).

The Group recorded Profit before zakat and taxation (PBZT) of RM64 million compared to RM93 million reported in the corresponding quarter of the preceding financial period, mainly due to lower contribution from RAPID Material Offloading Facilities operations at Johor Port Berhad (JPB) as the project is nearing completion, lower container volume handled at Northport Malaysia Bhd (Northport) due to shifting of global shipping alliances, lower share of profit from Malakoff Corporation Berhad (Malakoff) attributed to lower contribution from Segari Energy Venture's plant and lower fuel margin recorded at coal plants.

Review of Key Operating Companies

The Ports & Logistics division recorded revenue of RM655 million compared to RM713 million and a PBZT of RM67 million from RM124 million reported in the corresponding quarter of the preceding financial period, due to lower contribution from RAPID Material Offloading Facilities operations at JPB as the project is nearing completion and lower container volume handled at Northport due to shifting of global shipping alliances. These were compensated by higher volume handled at PTP and share of profit from Penang Port Sdn Bhd (PPSB).

The Energy & Utilities division recorded a PBZT of RM38 million compared to RM49 million reported in the corresponding quarter of the preceding year due to lower share of profit from Malakoff.

The Engineering division recorded an increase in revenue of RM604 million from RM194 million reported in the corresponding quarter of the preceding financial period due to higher progress at the KVMRT-SSP Line and Langat Sewerage Treatment project. The division saw an increase in PBZT to RM74 million from RM26 million reported in the corresponding quarter of the preceding financial period.

In other businesses, the division recorded revenue of RM21 million compared to RM19 million reported in the corresponding quarter of the preceding financial period due to an increase in passenger volume at Senai International Airport.

Moving Forward

The Group remains steadfast in its progress, driven by improving performances of its operating companies together with contribution from on-going projects.

Ports & Logistics division is expected to register higher revenue across all the ports. The completion of 100% acquisition in PPSB is expected to contribute positively to the Group's earnings as it allows full consolidation of PPSB as a wholly-owned subsidiary. The acquisition allows the Group to establish a strong foothold in the Northern region of Peninsular Malaysia and complement the Group's strategic presence throughout the Straits of Malacca. Operational and cost synergies driven by MMC, would improve the financial performance of its Ports & Logistics division.

The Energy & Utilities division will continue to contribute positively from the Group's associated companies, namely Malakoff and Gas Malaysia.

MMC's existing order-book provides earnings visibility for the Engineering division anchored by the KVMRT-SSP Line underground work and Project Delivery Partner (PDP) role for elevated portion. Furthermore, the earnings contribution from Engineering division will be sustained by on-going projects namely Langat 2 Water Treatment Plant, Langat Centralised Sewerage Treatment Project and our involvement in the PDP role for Pan

Borneo Sabah Highway.

Photo caption: MMC's Engineering division recorded over 200% increase in revenue of RM604 million from RM194 million reported in the corresponding quarter of the preceding financial period.

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About MMC Corporation Berhad

MMC Corporation Berhad (MMC) is a leading utilities and infrastructure group with diversified businesses under three divisions, namely Ports & Logistics, Energy & Utilities and Engineering.

Under Ports & Logistics division, MMC Port Holdings Sdn Bhd (MMC Ports) a wholly-owned subsidiary of MMC Corporation Berhad is Malaysia's largest integrated port and logistics service provider. MMC Ports operates Pelabuhan Tanjung Pelepas Sdn Bhd, Johor Port Berhad, Northport (Malaysia) Bhd, Penang Port Sdn Bhd, Tanjung Bruas Port Sdn Bhd, Kontena Nasional Berhad, JPLogistics Sdn Bhd and KTMB-MMC Cargo Sdn Bhd. Internationally, MMC Ports has presence in Saudi Arabia via Red Sea Gateway Terminal Company Limited, a container port terminal within the Jeddah Islamic Port.

Under the Energy & Utilities division, MMC is the single largest shareholder of both Malakoff Corporation Berhad and Gas Malaysia Berhad.

MMC's Engineering division has further established itself in the sector with a leading role as the Project Delivery Partner (PDP) and underground works package contractor for the 51km Klang Valley Mass Rapid Transit (KVMRT) project (Sungai Buloh-Kajang Line) and Line 2 project (Sungai Buloh-Serdang-Putrajaya Line). Prior to this, MMC has successfully completed the 329km Ipoh-Padang Besar Electrified Double Tracking Project as well as the innovative Stormwater Management and Road Tunnel (SMART) motorway, the first-of-its-kind dual-purpose tunnel in the world.

MMC continues to make inroads in the construction industry, securing key civil and infrastructure projects in the country namely Langat Centralised Sewerage Treatment Plant, Langat 2 WaterTreatment Plant, civil and infrastructure works for RAPID Pengerang Cogeneration Plant. Additionally, MMC has a 20% effective interest in Borneo Highway PDP Sdn Bhd (BHP) which has been appointed as PDP for the Sabah Pan Borneo Highway Project.

In other businesses, MMC owns Aliran Ihsan Resources Berhad, a water treatment plant operator and Senai Airport Terminal Services Sdn Bhd, the operator of Senai International Airport in Johor Bahru; a major aviation hub and the main air transportation gateway to Iskandar Malaysia. Additionally, MMC's Group Property arm manages close to 6,000 acres of industrial developments in Iskandar Malaysia, Johor and Kulim, Kedah, namely Senai Airport City, Tanjung Bin Petrochemical & Maritime Industrial Centre (TBPMIC) and Northern Technocity in Kulim. The Senai Airport City, TBPMIC and NTC (NTC) developments come under the ambit of Group Property's three operating companies - Senai Airport City Sdn Bhd, Seaport Worldwide Sdn Bhd and Northern Technocity Sdn Bhd respectively

Enquiries

Please log on towww.mmc.com.my or call:

Azlina Ashar, Head of Group Corporate Communications, MMC Corporation Berhad Tel: [phone], Fax: [phone]