Tan Sri Abdul Wahid OmarGroup Chairman

Permodalan Nasional Berhad

9 November 2017

KEYNOTE ADDRESS

Reinforcing Corporate Integrity: Top Down And All Around

1

1. Integrity as one of the core values of a good & sustainable

leader

2. Reinforcing Integrity in Society and Corporate Malaysia

3. Update on PNB

3 PARTS..

2

To take the family out of poverty

Accountancy as a profession

Graduated from ACCA & started career in 1987

3

4

Ultimate ambition as CFO

5

CEO of three large organisations

6

Honoured & privileged to serve as Senator & Minister

7

1. Unquestionable Integrity

2. Competency

3. Humility

Three prerequisites to becoming a good and sustainable leader

8

9

• Credibility - the person has the competency or authority to speak on the subject matter

• Reliability - the person has delivered on what he promised in the past. Dependability and track record if you like

• Intimacy - the personal commitment of the leader towards his staff or constituency

• Self Orientation - the leader has vested interest in the outcome of the issue at hand

Source: Charles H. Green, Trusted Advisor

The concept of Trust Equation

1. Integrity as one of the core values of a good & sustainable

leader

2. Reinforcing Integrity in Society and Corporate Malaysia

3. Update on PNB

3 PARTS..

10

841

939

785

2015 2016 Jan-Oct 201711

MACC drive in upholding the integrity in society

11.7%

12

Malaysia's ranking in Transparency International's Corruption Perceptions Index in 2016 will improve over time

13

Both the givers and recipients of bribes to be

charged and punished

Corruption would persist as long as there are

parties who are prepared to pay their way into

lucrative contracts and favours

Zero Tolerance

14

Enhance corporate governance in Malaysia

1 2

15

Enhance corporate governance in Malaysia

3 Corporate Integrity Pledge4

16

5

Enhance corporate governance in Malaysia

17

Top down all around

1. Integrity as one of the core values of a good & sustainable

leader

2. Reinforcing Integrity in Society and Corporate Malaysia

3. Update on PNB

3 PARTS..

18

19

Group Chairman of PNB since August 2016

3.519.0

57.5150.4

271.1

19

81

19

90

20

00

20

10

2017

(RM Billion)

UTFs

229.9

Proprietary

41.2

Honoured to be appointed as Group Chairman of PNBThe largest fund management company in Malaysia with AUM exceeding RM270 billion

Sept 30,

20

21

Major investor in Bursa MalaysiaInvesting more than RM180 bill ion in domestic public equities across most major

Malaysian corporates

The categorisation of companies are as follows:* Strategic : Public listed companies where PNB owns majoritycontrol* Core : Companies that PNB owns more than 10% or RM 1billion of investment value1 Based on Market Value of PNB & UTFs’ investment in public

equities listed on Bursa Malaysia, as at September 29, 2017

RM186.4 billion1

Investment in Bursa

10.1%

RM1,845.49 bilBursa Malaysia Total Market Capitalisation

As at Sept 30, 2017

STRATEGIC COMPANIES

48% 53% 66%

58% 71% 58%

SELECTED CORE COMPANIES

20%21%

10%

18%18%

14% 13%14%

12%

13%

11% 11%

10% 10% 9% 9%

Outlined 15 initiatives under 3 strategic pillarsPNB STRIVE-15

BUILDING A DISTINCTIVE WORLD CLASS INVESTMENT HOUSE

ENHANCING SUSTAINABLE RETURNS

OptimiseAsset Allocation

1 BoostDomestic Public

Equity Performance

2 Increase Exposure in

Private Equity and Fixed Income

3 Rationaliseand Enhance

Property Investments

4

Diversify into Global Assets

5

Robust Investment Process

6

Efficient Portfolio

Oversight

7 8

Faster Asset

Turnaround via Monetisation

EFFECTIVE INVESTMENT MANAGEMENT

DRIVING OPERATIONAL EXCELLENCE

I

II

III

Sound Governance

Practices

9 11 13

Delivering on Social

Objectives

15

Efficient Capital & Liquidity

Management10

Maintain Unit Trust Industry

Leadership

12

Total IT Transformation

14

Cultivating a Pro-active Risk

CultureEnergised&

High-Performing Human Capital

22

Our people have been busy executing the Strategic Plan Focusing on initiatives under the 1st strategic pillar of Enhancing Sustainable Returns

STRATEGIC PILLAR I:

ENHANCING SUSTAINABLE

RETURNS

1

2

43

5

OptimiseAsset Allocation

Boosting Domestic Public Equity Performance

Diversify into Global Assets

Increase Exposure in Private Equity and

Fixed Income

Rationaliseand Enhance Property Investments

Commenced and in-progress

In planning and preparation stage

23

Transformation of PNB Strategic Companies is gathering momentum with a number of corporate exercises announcedtotal value of strategic companies increasing by RM24 bill ion to date

Price Change (%) Increase in M’cap(RM bil)

YTD performance

as at Oct 31, 2017

Boosting Domestic Public Equity Performance

2

Rationaliseand Enhance

Property Investments

4

• Expected completion by early December 2017 for the separate listings of Plantation and property unit

Corporate Developments

Sime Darby

• Completed the de-merger of Oil & Gas business by UMW Holdings Berhad to create a more focused auto and industrial player

• Recapitalisation exercise by UMW Oil & Gas targeted to be completed by mid-October 2017

UMW Group

• Proposed acquisition of I&P Group to create largest property company in Malaysia expected to be completed by end of December 2017

S P Setia

• Announced the de-merger of CCM Duopharmaand CCM Berhad to create a more nimble and focused group

CCM

KLCI

Weighted Average

+12.8%

+13.6%

+24.1%

+78.2%

+4.5%

+16.2%

14.3

7.5

0.8

0.4

1.0

0.1

+6.5% 1,747.9/ 1,641.7

+13.2% 24.0

24

Whilst continuing to deliver on our Corporate Responsibility programs

2016Since

inception

TapahPerak

215,000visitors

3.4 milvisitors

365days

95,000participants

563,000participants

4categories

146,000participants

339,000participants

104schools

139,000participants

718,000participants

Financial LiteracyEducation

PNB Chartered

Accountant Programme

Global &

local scholarships

SkimLatihan

1Malaysia

1,000 Bumiputera

chartered accountants

by 2022

Almost

500 candidates to

date

More than

600scholarships

in 2016

2,400scholarships

since inception

413participants

trained

Programmeextended to

12 months

Employability

5,000affordable homes by

2022

Planning started for

pilot project

Affordable Homes

25

0.5 11.8

36.0

119.1

217.7

1981 1990 2000 2010 Sep-16Sept 2017

Mobilising all Malaysians’ savingsPNB currently has more than 13.2 mill ion Malaysian accounts with 217.7 bil units

in circulation

(billion units)

0.8

5.1

7.8

10.3

13.2

1981 1990 2000 2010 Sep-16Nov-16

(million)

CAGR: 18.5%

CAGR: 8.2%

Number of AccountsUnits in Circulation

Sept 2017

26

27

Will be implemented from

1 Jan 2018

Malaysian babies born from 1 January 2018 to

31 December 2022

Will receive 200 free incentive trust fund

units

Involves two funds namely Amanah Saham

Bumiputera (ASB) for Bumiputera babies and

Amanah Saham 1Malaysia (AS 1Malaysia) for non-

Bumiputera babies

Will be credited automatically in the unit

trust funds after the registration process is

completed by their parents or guardian

UNITS

28

Reinforcing Integrity: Top Down and All Around

• Choosing the right leaders for our respective

organisations

• Ensuring the integrity of our records and financial

statements

• Ensuring we do not perpetuate corruption by paying

bribes in order to secure contracts or favours

• To whistleblow when we see acts of dishonesty

Let us all do our respective part &

embrace the spirit of Rukun Negara

o Kepercayaan Kepada

Tuhan;

o Kesetiaan Kepada Raja Dan

Negara;

o Keluhuran Perlembagaan;

o Kedaulatan Undang-

undang;

o Kesopanan Dan Kesusilaan

o Belief In God

o Loyalty To King And

Country

o Upholding The

Constitution

o Rule Of Law

o Good Behaviour And

Morality

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100+ initiatives since 2009

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..When the government of Malaysia faced this precise challenge in 2010, it recognized that only a shift in strategy and organizational focus could break the vicious cycle of incarceration and reduce crime. To that end, the government turned to the National Blue Ocean Strategy (NBOS) Summit. The government had created the NBOS Summit in 2009 to pioneer innovative strategies and new practices that could achieve high social impact at low cost. Each month the NBOS Summit brings together national leaders like the prime minister, the deputy prime minister, and other top ministers, as well as the highest-level civil servants, including those from the nation’s security forces…

Source: Blue Ocean Shift (page 8)

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Malaysia's NBOS recognised in the new bestseller Blue Ocean Shift

Thank You