Section 1 Chairman's Script for General Meeting for Sime Darby Berhad (752 !

2"#$

%eld at& -o#ation .rand Ballroom, /irst /loor, Sime arby Convention Centre, %A,

0alan Bu"it 1iara %, 2&&&& 1uala -umpur, Malaysia ate Time Chairman Thursday, &34%%45&%5 %&.&&am 6Malaysia Time7 Tun Musa Hitam

'elcome& A very good morning yo the ladies and gentlemen. My name is Tun Musa Hitam, and I am the Chairman of the Company. On behalf of the Board and staff of Sime arby Berhad, I !ould li"e to !el#ome those shareholders !ho have made time to attend this general meeting. As a politeness to all shareholders and guests present, #ould I as" that all mobile phones be turned off to avoid disruption to the this general meeting. ()or)m& As !e have a $uorum, I no! de#lare the general meeting open at %%.&&am. [Quorum = 2 or more members present at the meeting (in person or by proxy) and entitled to vote] *egistration& Can you please ensure you have pre'registered, even if you are not a shareholder, and have obtained a registration #ard. +ntrod)ctions& I !ould li"e to introdu#e the ire#tors on the Company(s Board) ,an Sri Dato- Sri %amad .ama /iah Che 0thman, *on'+,e#utive eputy Chairman

,an Sri Sams)din 0sman, *on'+,e#utive ire#tor8 ,an Sri Dat)1 2mar (Dr$ ,ommy B)go 3 %amid B)go, *on'+,e#utive ire#tor ,an Sri Dat)1 Dr 4)sof Basiran, *on'+,e#utive ire#tor Dato Sri 5im %a6 .)ang, *on'+,e#utive ire#tor ,an Sri Dato' Dr 'an Mohd 7ahid Mohd 8oordin, *on'+,e#utive ire#tor and Dato- Mohd Ba11e Salleh, +,e#utive ire#tor 9e have an apology from Dato- %enry Sac19ille Barlo6, *on'+,e#utive !as unable to attend today. /ro:y ;otes& :ro,ies have been re#eived from %2&&& shareholders representing ;M 3&&& million Ordinary Shares. The pro,ies are available for inspe#tion and the pro,y results for ea#h resolution !ill be sho!n on the s#reen behind me. /roced)re for the meeting (0rdinary b)siness$& The first item of ordinary business is a presentation by the +,e#utive ire#tor, and 5&%<. The se#ond item of ordinary business is a presentation by the .roup Chief /inan#ial Offi#er, ,ong /oh .eo6, on the #hanges to the #lassifi#ation, other arising4outstanding issues, analysis of dis#ontinue operations and its finan#ial impa#t to the group. The third item of ordinary business is a presentation by the *on'+,e#utive ire#tor eputy Chairman, ,an Sri Dato- Sri %amad .ama /iah Che 0thman , on the main differen#e bet!een IAS %= and I/;S 3 by #omparing segmental dis#losure for atoMohd Ba11e Salleh, on the the types of non'#urrent assets held for sale for 5&%5 ire#tor, !ho

year 5&&2 and 5&%5. The fourth item of ordinary business is a presentation by the +,e#utive based on finan#ial analysis. The first presentation by the +,e#utive PowerPoint slides ] *on'#urrent assets are #lassified as >held for sale? if their #arrying amounts !ill be re#overed prin#ipally through a sale transa#tion rather than through #ontinuing use, and !hen a de#ision to sell has been made8 the assets are available for sale immediately8 the assets are being a#tively mar"eted at a pri#e that is reasonable in relation to its #urrent fair value8 and a sale has been or is e,pe#ted to be #on#luded !ithin the ne,t t!elve months from the date of #lassifi#ation. epre#iation #eases !hen an asset is #lassified as non'#urrent assets held for sale. *on'#urrent assets held for sale are stated at the lo!er of #arrying amount and fair value less #ost to sell. The types of non' #urrent assets held for sale in Sime arby for year 5&%< are property, plant and e$uipment, prepaid lease rentals, asso#iates and disposal group. *et non' #urrent assets held for sale for finan#ial year end 5&%< is ;M =&.% million. It in#ludes property, plant and e$uipment 6;M < million7, prepaid lease rentals 6;M &.@ million7, asso#iates 6;M 5<.3 million7 and disposal group 6;M %&5.A million7 and liability asso#iated !ith non#urrent assets held for sale 6;M A&.< million7. The types of non'#urrent assets held for sale for 5&%5 are property, plant and e$uipment, prepaid lease rentals, investment property and asso#iates. The total amounts of non' #urrent assets held for sale for year ended 5&%5 is ;M =5.5 million, !hi#h in#ludes property, plant and e$uipment 6;M@.@ million7, prepaid lease rentals 6;M &.@ million7, investment property 6;M @.& million7 and asso#iates 6;M 52.3 million7. The non'#urrent assets held for sale and liabilities asso#iated !ith assets held for sale in#lude the .roup(s <&B e$uity interest in Brunsfield +mbassyvie! Sdn Bhd and Syari"at Mala##a Straits Inn Sdn Bhd, #lassified as disposal group. isposal group in#ludes property, plant and e$uipment of ;M 3C.< million and borro!ing of ;M 3=.3 million. The borro!ing !as se#ured against the property, plant and e$uipment. ire#tor. [Presentation given with reference to ire#tor, Dato- Mohd Ba11e Salleh, on the performan#e of various reportable segments

Gro)p (*M million$ *on'#urrent assets held for sale :roperty, plant and e$uipment :repaid lease rentals Investment property Asso#iates isposal group

2!1<

2!12

<.& &.@ ' 5<.3 %&5.A %<&.=

@.@ &.@ @.& 52.3 ' =5.5

-iabilities asso#iated !ith assets held for sale ' disposal group *et assets held for sale 6A&.<7 =&.% ' =5.5

!on"#urrent $ssets %eld for &ale and 'iabilities $ssociated with $ssets %eld for &ale I/;S C spe#ifies t!o main re$uirements to initially #lassify asset6s7 as held for sale. /irstly, the asset6s7 must be available for immediate sale in its 6their7 present #ondition. Se#ondly, the sale must be highly probable. There are some #hanges to the #lassifi#ation from other non#urrent assets to non#urrent assets held for sale and from non#urrent asset held for sale to other non#urrent assets. In year 5&%<, In Sime arby, there !as ;M A%.2 million amounts from property, plant and e$uipment and ;M 2 million from deferred ta, assets #lassify as non#urrent assets held for sales in year 5&%<. There is ;M %3.5 million of non#urrent assets held for sale !as disposed of !ithin the year 5&%<. Hen#e, balan#e amounts of non #urrent assets held for sales are ;M =&.% million at <& 0une 5&%<. In year 5&%5, there !as ;M C.5 million amounts from property, plant and e$uipment, ;M C.A million from investment properties and ;M 5.% million from asso#iates #lassify as non#urrent assets held for sales in year 5&%<. There !as a balan#e of ;M =5.5 million for non #urrent asset held for sales at <& 0une 5&%<. Gro)p (*M million$ 2!1< 2!12 2>2 7?<>7 6%3.57 6@<=.@7

2t =)ly isposals

Transfer from property, plant and e$uipment D*ote %@E Transfer from investment properties D*ote 5&E Transfer from asso#iates Transfer from deferred ta, assets D*ote 5CE Transfer from other assets and liabilities 2t <! =)ne #hanges to the classification

A%.2 ' ' 2.& 63%.C7 !>1

C.5 C.A 5.% ' ' 2>2

The second presentation by the .roup Chief /inan#ial Offi#er. [Presentation given with reference to PowerPoint slides ] The dis#ontinued operations in Sime arby sho!ed a profit of ;M <C5.= million on <& arby Health Care

0une 5&%<. It in#lude a gain of ;M <=&.2 million arising from the Foint venture agreement !ith ;amsay Health Care -td on the establishment of ;amsay Sime Sdn Bhd. /ollo!ing the #ompletion of the arrangement on <& 0une 5&%<, the .roup(s investment in the Health Care business !ill #hange from a subsidiary to a Fointly #ontrolled entity. A##ordingly, the .roup has #eased to present the Health#are ivision as a separate segment. On <& 0une 5&%5, the dis#ontinued operations in Sime arby sho!ed a loss of ;M =2.= million, it arose from the disposal of the Telu" ;amunia and :asir .udang fabri#ation yards !here the .roup e,ited the oil and gas business follo!ing the #ompletion of the disposal on <% Mar#h 5&%5. The oil and gas business formed a signifi#ant #omponent of the +nergy G Htilities division and hen#e their result !as presented as dis#ontinued operations. Besides that, net #hanges in fair value of #ash flo! hedges also sho!ed loss of ;M =.2 million in other #omprehensive in#ome from dis#ontinued operations in year 5&%5. 2!1< 2!12 Health#are Health#are <3C.C <C3.< 6<@5.&7 6<<A.%7 A.A 2.A 5<.= 52.% &.A &.5 65.&7 ' 55.< 52.< 6%&.C7 62.C7 2!12 Oil G .as @%C.< 63=A.%7 A=.@ 6<A.%7 &.= 6%.C7 6=&.57 6%&.A7 2!12 Total %&@<.2 6%%33.57 %&%.2 6%<.&7 &.2 6%.C7 6%<.A7 6%@.=7

;evenue Operating e,penses Other operating in#ome :rofit46loss7 before interest and ta, /inan#e in#ome /inan#e #osts :rofit46loss7 before ta, Ta, e,pense

:rofit46loss7 after ta, .ain46loss7 on sale of dis#ontinued operations *et profit46loss7 from dis#ontinued operations Other #omprehensive in#ome from dis#ontinued operations *et #hanges in fair value of #ash flo! hedges

%%.3 <=&.2 <C5.=

%A.3 ' %A.3

6C%.%7 6%C.%7 622.57

6<%.<7 6%C.%7 6=2.=7

'

'

6=.27

6=.27

!et profit((loss) from discontinued operations In 5&%<, the profit of ;M <C5.= million from dis#ontinued operations has positive finan#ial impa#t to the group. In basi#, the earning per share 6sen7 is C.32 sen !hile in diluted, the earning per share is also C.32 sen. Means, shareholders in#rease !ealth of C.32 sen per share from dis#ontinued operations. In vie! of #ash flo!, dis#ontinued operation generate a total ;M =3.& million #ash inflo! from finan#ing a#tivities and a total of ;M %2.& million from operation a#tivities to the group of Sime arby. It dis#loses the li$uidity and solven#y position of the dis#ontinued operation from finan#ing a#tivities and operating a#tivities. Ho!ever, there !as a #ash outflo! of ;M <5C.@ million from investing a#tivities from dis#ontinues operations. In 5&%5, loss of ;M =2.= million from dis#ontinued operations has negative finan#ial impa#t to the group. In basi#, the loss per share 6sen7 is &.@@ sen !hile in diluted, the earning per share is also &.@@ sen. Means, and shareholders in#urred loss of &.@@ sen per share from dis#ontinued operations. In vie! of #ash flo!, dis#ontinued operation generate a total ;M%.2 million #ash inflo! from finan#ing a#tivities and a total of ;M =<.= million from operation a#tivities to the group of Sime arby. Ho!ever, there !as a #ash outflo! of ;M C%.3 million from investing a#tivities from dis#ontinues operations. @arnings A(loss$ per share " Gro)p Basi# from #ontinuing operations from dis#ontinued operations 2!1< CC.@5 C.32 ?1>5B 2!12 2A.3< 6&.@@7 ?C>!?

Dil)ted from #ontinuing operations from dis#ontinued operations

CC.@% C.32 ?1>57

2A.3< 6&.@@7 ?C>!?

Cash Dlo6 " Gro)p *et #ash from operating a#tivities *et #ash 6used in74from investing a#tivities *et #ash from46used in7 Inan#ing a#tivities

2!1< %2.& 6<5C.@7 =3.&

2!12 =<.= 6C%.37 %.2

)esults and cash flows of the discontinued operations The third presentation by the *on'+,e#utive given with reference to PowerPoint slides ] ire#tor eputy Chairman [Presentation

*eE)irement Basis for identifi#ation of segments

+2S 1 (Dor 4ear 2!!?$ Segments are identified based on the predominant sour#es of ris"s and returns. This may result in either a business or geographi# basis for segment identifi#ation. 9here this does not #oin#ide !ith the basis on !hi#h the entity reports internally to senior management, the internally reported segment information is not used as the basis for e,ternal finan#ial reporting. ;ather, the internally reported information must be rearranged to meet the re$uirements of IAS %= !hi#h is IAS %5 paragraphs 5@ and <5.

+D*S B (Dor 4ear 2!12$ Segments 6#alled operating segments7 must be determined based on the !ay information is reported internally to the #hief operating de#ision ma"er 6CO M7. This may not #oin#ide !ith the !ay information is reported e,ternally and therefore may not agree !ith the entityJs statement of profit or loss and other #omprehensive in#ome and statement of finan#ial position. 9here in this #ase, I/;S 3 re$uires re#on#iliations to be provided bet!een the segment information !hi#h usually be in the notes of finan#ial statements and the statements of profit or loss and other #omprehensive in#ome and statements of finan#ial position. I/;S 3 does not refer to primary and se#ondary segments. I/;S 3 does not distinguish bet!een revenues and e,penses form transa#tions !ith third parties and those form transa#tions !ithin the group for the purposes of identifying operating segments 6I/;S 3 paragraph

:rimary and se#ondary segments

IAS %= re$uires an entity to identify primary and se#ondary segments 6IAS %= paragraph 527 IAS %= re$uires that a business or geographi#al segment be identified as a reportable segment if maFority of its revenue is earned form sales to e,ternal #ustomers and #ertain other #onditions are

;evenues from third parties as the basis for identifying reportable segments

&ources form* $pplying +nternational ,inancial )eporting &tandards by -erry #lar./ 0anice 'oftus/ 1ictoria 2ise/ -en 0 'eo/ -eith $lfredson/ )uth Pic.er (3rd 4dition) The fo)rth presentation by the +,e#utive PowerPoint slides ] Based on the annual report Sime arby for the year 5&%5. 9e "no! that the group has si, reportable segments, !hi#h are the .roupJs strategi# business units. The strategi# business unit offers the different produ#ts and servi#es, and are managed separately. /or ea#h of the strategi# business units, the president and .roup Chief +,e#utive !ill revie! and #he#" the internal management reports on a monthly basis. Beside that, .roup Chief +,e#utive also al!ays #ondu#ts the performan#e dialogues !ith the business units on a regular basis. The segments #omprise !ith the plantation, property, industrial, motors, energy G utilities, health#are and others. The plantation, industrial and motors segment are the most profitable segment !hi#h #ontributes 5A.23B, 5@.@@B and <=.A2B to the group revenue. In other !ords, these three segment totally #ontributes A5.=%B. In the plantation segments, its provided produ#tion and mar"eting of fresh fruit bun#h, and mar"eting of palm oil related produ#ts. The plantation segment #ontributed C5.%&B revenue, !hi#h means that the segment are very profitability and also useful for the Sime arby to generates the profit and the revenue also in#reased @.<B in year 5&%5. The property segment !hi#h developing and mar"eting residential, #ommer#ial, industrial properties, land and other re#reational fa#ilities and servi#es. The property segment #ontributed @.2&B of the revenue and the revenue in#reased 5.3B, !hi#h means that the property segment(s revenue !as in#reased in the 5&%5 but the #ontribution of the group revenue is not that good . In addition, the Industrial segment !hi#h provides produ#ts and servi#es for sales, rental and servi#ing heavy e$uipment, the industrial segment #ontributed 55B of the revenue and the revenue in 5&%5 !as in#reased 53.5B !hi#h means that, if !ithout the plantation segment the industrial segment is the se#ond profitable segment. /urthermore the motors segment !hi#h provides the produ#ts and servi#es !hi#h motors are assembly and distribution of vehi#les and !arrants. The motors #ontributed %%.=B of the revenue and the revenue in 5&%5 !as in#reased %5B.. The ire#tor [Presentation given with reference to

motors are the third largest segment of group revenue #ontribution, and the performan#e of this segment is moderate. *e,t are the +nergy and utilities segment, for those segment provides produ#ts and servi#es for engineering, po!er generation, treatment and distribution of treated !ater, and o!nership and management of port fa#ilities. The energy and utilities #ontributed C.=B of the revenue and the revenue in 5&%5 !as in#reased 3.2B. 9e #an say that, the performan#e of energy and utilities segment is moderate. /or the Health#are segment, the produ#ts and servi#es of health#are are provided provision of health#are servi#es. The health#are #ontributed &.=B of the revenue and in 5&%5 the revenue of health#are segment !as in#reased A.%B. The health#are #ontributes the lo!est profit and revenue to Sime in#reasing the performan#e of this segment is moderate. Are there any #omments or $uestionsK [$ll 5uestions to be referred to presenter or others/ as appropriate ] If not, no! I move to the ne,t session. Clos)re& Before #losing the meeting, I !ould li"e to than" our shareholders for supporting Sime arby and for having faith in the Board and management team. /inally, I !ould li"e to than" my #olleagues on the Board for their support, guidan#e and diligen#e in the governan#e of the Company. So, !ith those fe! final #omments, there being no further business, I no! de#lare the .eneral Meeting #losed at %%.=Cam. Than" you all for your attendan#e and interest and !e loo" for!ard to your #ontinued support in the #oming year. arby, but sin#e the revenue is

Section 2 a7 9hat segments must reported separately and !hat segments #an be #ombined under the #ategory of >Other?K Segment Industry +ngineering /amily #are /ood ;estaurant ;eal estate ,otal *e9en)e (*M$ 2C2,&&& %,533,&&& =2=,&&& 32,&&& %53,&&& 2=,&&& 2F?B?F!!! /rofitA5oss (*M$ @5,&&& 5A2,&&& '5C,<&& '%<&&& 55,C&& 3,&&& <CBF5!! ,otal 2ssets (*M$ 5<C,&&& %,&<2,&&& =22,&&& =C,&&& C5,&&& <5,&&& 1FB??F!!!

62/787/999 x :9; = 278/899 6 3<8/=99 x :9; = 3</8=9

i7 Segment industry, engineering and family #are satisfy the revenue #riteria and therefore should be #lassified under separate reportable segment. There is no need to #onsider the profit or loss or asset #riteria. In addition, the total revenue of these three segments also amount to more than @CB, !hi#h is) 62/787/999 x >=; = 2/9:?/=99 ii7 Segments !hi#h are food, restaurant #an be aggregated into same reportable segment as they are in the same nature. iii7 On the other hand, real estate !ill be #lassified under the #ategory of >Others?. b7 9hat #riteria are used to determine reportable segmentK In order to determine reportable segment, one of the follo!ing #riteria must be satisfy) *e9en)e& The reported revenues from sales to e,ternal #ustomers and inter'segment sales must be %&B more of the #ombined revenues of the e,ternal and internal segments. *es)lts& The absolute amount of segment(s profit or loss must be %&B or more of the greater of the #ombined reported profit of all segments reporting profits or the #ombined loss of all segments reporting losses. 2ssets& The segments assets must be %&B or more of the total assets of all segments. #7 9hat maFor items for ea#h must be dis#losed in a##ordan#e !ith I/;S 3K A##ording to I/;S 3, items that must be dis#losed in#lude general information and finan#ial information. The general information in#lude fa#tors used in determining reportable segment and the types of produ#ts and servi#es of ea#h reportable segment. On the other hand, the finan#ial information in#lude profit or loss, total assets and total liabilities of ea#h segment. Information re$uired for the measurement of profit or loss in#lude revenue from e,ternal #ustomer and inter'segment transa#tion, interest revenue

and e,penses, depre#iation and amortiLation, in#ome ta, e,penses and so on. On the other hand, the liabilities only in#lude liabilities that regularly reported to the #hief operating de#ision ma"er. In addition, investment in asso#iates and Foint venture also needed to be dis#losed if they are a##ounted for on e$uity basis. Beside, if there is amount of addition to non'#urrent assets other than finan#ial instrument, dis#losure also re$uired. d7 :repare a dis#losure to be presented in the notes to a##ounts for .rand Berhad.