Maybank

Expanding Regional Investment Banking Franchise

Analyst Presentation
6 January 2011

Slide 0
TABLE OF CONTENTS

ƒ TRANSACTION OVERVIEW

ƒ ABOUT KIM ENG

ƒ OUTCOME OF THE COMBINATION

ƒ SALIENT TRANSACTION TERMS & FINANCIAL IMPACT

ƒ CONCLUSION

Slide 1
TRANSACTION OVERVIEW
Maybank Expands Regional Investment Banking Presence

Overview ƒ Agreements with Ronald Ooi and Yuanta Securities Asia Financial Services Limited (“Yuanta”)to
acquire 44.6%1 of Kim Eng Holdings Limited (“Kim Eng”)
– S$3.10 per share
– Subject to certain conditions, including regulatory approvals from Bank Negara Malaysia
(“BNM”) and Monetary Authority of Singapore (“MAS”)
ƒ Upon completion, Maybank to conduct a Mandatory General Offer (“MGO”), in accordance with
Singapore regulations, for up to 100% of Kim Eng shares
ƒ Intend to take Kim Eng private
ƒ Total consideration of S$798mm in cash for initial 44.6%1 equity interest
ƒ Total consideration of S$1,789mm (RM4,256mm) in cash for 100% equity interest
Rationale ƒ In line with Maybank’s regional aspirations, accelerating its investment banking and equities
b ild
build-out i ASEAN
in
ƒ A truly unique asset in ASEAN - size, pan-regional platform, market leadership, impressive
earnings track record and diversified earnings base
9 Underlying markets experiencing rapid growth
9 Strong distribution capabilities, with market leadership in Singapore (#4), Thailand (#1),
Indonesia (#3) and the Philippines (#2), and a growing presence in Hong Kong, New York,
London and Vietnam
9 Complementary footprint to drive realization of synergies
9 Experienced and highly regarded management team to be retained

Source: Market rankings from stock exchanges and management

1. Based on total shares outstanding, net of treasury shares
Slide 2
TABLE OF CONTENTS

ƒ TRANSACTION OVERVIEW

ƒ ABOUT KIM ENG

ƒ OUTCOME OF THE COMBINATION

ƒ SALIENT DEAL TERMS & FINANCIAL IMPACT

ƒ CONCLUSION

Slide 3
KIM ENG
ASEAN’s Leading Securities Firm

Track Record of Over 35 Years

Strategic alliance with

KE Yuanta. Acquired KE Thailand listed and Strategic alliance with MUFJ
Securities Yuanta Thailand and i l d d iin MSCI IIndex
included d Est. KE Capital Partners, a JV
founded London Philippines Ong Asia in Singapore Est. KE Absolute in HK with MUFJ

1972 1988 1989 1990 1993 1998 2001 2002 2003 2007 2008 2010

Hong Kong Indonesia, Malaysia, US Acquired stock JV with Heritage Vietnam Signed agreement for 70%
broking firm Trust Group shareholding in Inter-
First stock broker listed
Nithipat Capital & Pacific Securities in
on SGX
Securities in Malaysia
Thailand
Brokerage
g Ranking
g1 Awards and Accolades

Country Ranking Market Share Branches Best Broker Award Best Broker Award
(2008, 2009, 2010) (2010)
Alpha Southeast Asia FinanceAsia
Thailand #1 13% 41

Philippines #2 12% 4 StarMine Broker Rankings for Best Local Brokerage in

STI Earnings Forecasts (2010) Singapore (2009)
Indonesia #3 5% 6 StarMine AsiaMoney Broker Poll of Polls

Singapore #4 8% 3 Top 50 Largest Brands in Best Research Call of the Year

Singapore (2008, 2009) in Southeast-Asia (2009)
Vi t
Vietnam #7 2% 5 B
Brand
d Fi
Finance Al h Southeast
Alpha S th t Asia
A i

Source: Company website and filings.

1. Market rankings and market shares for 9 months 2010 from stock exchanges and management
Slide 4
PERFORMANCE HIGHLIGHTS
Resilient Performance; Diversified Presence

Resilient Operating Income Sustained Net Income and Net Margin

SGD mm SGD mm Net Income Net Margin
600 580 250 40%
35%

200 30%
450 27% 30%
26%
24%
351 366 14 9
343
15 0 20%
18 %
300 271 268 272 20%
10 2
94 89
10 0
72 73
15 0 50 10 %
50

0 0 0%
2005 2006 2007 2008 2009 9M 2009 9 M 2 0 10 2005 2006 2007 2008 2009 9M 2009 9 M 2 0 10

Diversified Presence in Over 10 Countries Brokerage is the Main Contributor

2009 Revenue by Geography 2009 Revenue by Business
Others Money Lending Others
Indonesia 0.3%
5% & Margin
4%
Financing
g
Hong Kong 10%
10% Fee Based
6%
Singapore
54%
Thailand
28%

Stockbroking
84%

Source: Company website & fillings

Slide 5
TABLE OF CONTENTS

ƒ TRANSACTION OVERVIEW

ƒ ABOUT KIM ENG

ƒ OUTCOME OF THE COMBINATION

ƒ SALIENT DEAL TERMS & FINANCIAL IMPACT

ƒ CONCLUSION

Slide 6
A LEAP TOWARDS ACHIEVING OUR ASPIRATIONS
Plugging Critical Gaps within our Business Portfolio

By 2015

Our Vision To be a Regional Financial Services Leader

Our Mission Humanising Financial Services from the Heart of ASEAN

1. Undisputed #1 Retail Financial Services provider in Malaysia by

Strategic Objectives
2015

2. Leading ASEAN wholesale bank eventually expanding to Middle

East, China & India

3. Domestic Insurance Champion and emerging regional player

4. Truly regional organisation, with ~40% of pre-tax profits derived

from international operations by 2015

5. Largest Islamic bank in ASEAN

Critical Gaps
Slide 7
MAYBANK REGIONAL BANKING FRANCHISE
Completes the Gap in Investment Banking and Equities for ASEAN

Commercial / Islamic
Geography Investment Banking Stock Broking
Banking

Malaysia 3 3 3
Singapore 3
Indonesia 3
Philippines 3
Thailand 2
Vietnam 3
ƒ Wholesale banking capabilities across ASEAN
Enhanced Banking ƒ Extends Maybank’s distribution capabilities to key global financial markets
Platform including Hong Kong,
Kong London and New York

ƒ Commercial banking presence in Thailand remains the missing piece of the jigsaw
Entrance into – Kim Eng offers deep insight into the Thai market
Thailand Market
– Allows Maybank to develop brand recognition

Slide 8
STRATEGIC RATIONALE
1
Capitalise on Robust ƒ Strong trading volumes, fuelled by economic growth and liquidity in-flows
Capital Markets’ ƒ Potential for higher retail participation – driven by high savings rates and
Growth increasing investor sophistication

2 ƒ Leading independent regional stockbroker

ASEAN’S Dominant – #4 in Singapore, #1 in Thailand, #3 in Indonesia, and #2 in the
Brokerage Platform Philippines
ƒ Client base of 200,000*
ƒ Distribution presence in key financial markets: ASEAN, Hong Kong, New York
and London

3 ƒ Complementary geographical and product footprint

Significant Synergy ƒ Improved banking franchise
Opportunities – Wider distribution capabilities
– Leveraged on Maybank’s strong balance sheet and client relationships
– Cross-selling opportunities

4
ƒ Experienced and well respected management team, with significant
Top-Notch
experience in building and growing businesses
Management Team
ƒ Core management team retained

Notes:
-Market ranking from stock exchanges and management
* Based on latest available data
Slide 9
 1 CAPITALISE ON ROBUST CAPITAL MARKETS’ GROWTH
Asia Expected to Remain Robust

Attractive Economic Dynamics of Asian Markets¹ Trading Volume Growth of Key Asian Markets²

29%
35%
24%
30%
28%
19%
Strong 21%
16%
High Savings Volume
Rates (2009) Growth 15%
(2005-09)
6% 8% 9%
3% 3%

0%

69%
7%
6%
6% 55%
5%
5% 5%

Strong Real Continued

GDP Growth Strength 34%
(2009-2014E (YoY 26%
CAGR) 2% Growth)3
17%
2%
7%
2% 1%

Source: 1. Economic Intelligence Unit and Euromonitor. Savings rate represents proportion of household disposable income that is saved
2. World Federation of Exchanges members, Trading volume growth based on value. 3. YTD Nov 2010 vs YTD Nov 09

Slide 10
 2 ASEAN’S DOMINANT BROKERAGE PLATFORM
Our Expanded Presence with Kim Eng
Maybank
ASEAN Stockbroking Champion
Commercial Banking
Brokerage / Investment Banking
Ranking M. Share Ranking M. Share Retail Banking
Kim Eng also maintains
distribution presence in #4 7% #1 13% Other Services
keyy financial markets
including Hong Kong, #4 8% #2 12% Kim Eng
London and New York Brokerage / Investment Banking
#3 5% #7 2%
Other Services3

Thailand Vietnam
ƒ Maybank: 2 + 951 branches
ƒ Kim Eng: 41 branches
ƒ Kim Eng: 5 branches

Cambodia Philippines
ƒ Maybank: 50 branches
ƒ Maybank: 9 branches
ƒ Kim Eng: 4 branches

Malaysia Brunei
ƒ Maybank: 386 branches
ƒ Maybank: 3 branches
g 6 branches
ƒ Kim Eng:

Singapore Indonesia
ƒ Maybank: 22 branches ƒ Maybank: 1+321branches2
ƒ Kim Eng: 3 branches ƒ Kim Eng: 6 branches

Source: Company websites, annual reports and presentations. Market ranking and market share from stock exchanges and management. Number of branches are as of latest available
1. 95 branches via 20% owned An Binh Bank
2. Via 97.5% owned PT Bank Internasional Indonesia Tbk
3. Kim Eng’s other services include asset management, hedge fund services, property & real estate development, insurance and trust & fiduciary services

Slide 11
 3 SIGNIFICANT SYNERGY OPPORTUNITIES
Harnessing Synergies

Improved Investment Banking

Cross-selling
and Underwriting Capability
ƒ Mutual product offerings ƒ Leveraging Maybank‘s strong balance
ƒ Tapping into Kim Eng
Eng’s
s client base of sheet and client relationships
200,000

Kim Eng’s
g Business and
Other
Footprint Expansion
ƒ Cash management support for cash ƒ Maybank’s strong capital base can
balances held in trust support Kim Eng’s growth initiatives
ƒ Support for foreign exchange flows (e.g. margin lending)
and hedging ƒ Access to Thailand and Thai market
ƒ Improved funding cost intelligence

Enhanced Infrastructure

ƒ Maybank’s extensive branch network to

support expansion of stockbroking
presence
ƒ Operational best practices in risk
management and IT delivery platform

Slide 12
 4 TOP-NOTCH MANAGEMENT TEAM
Quality and Depth of Talent

Ronald Ooi, Chairman and CEO

ƒ 30+ years of industry experience

ƒ Director of Kim Eng since 1979
ƒ SGX committee member 1986 - 1999

Eunice Ho Lau Wai Kwok Judd Clarke Kinne

ƒ Chief Financial Officer ƒ Executive Director, Global Institutional Sales ƒ Alternative Director to Lau Wai Kwok; Executive
ƒ 30+ years of general management experience in ƒ 28+ years of industry experience Vice President, Business Development
the securities, gaming and manufacturing ƒ Joined Kim Eng in 1979 ƒ 30 years of industry experience in Asia and the
industries US

Daniel Kwek Chuah Lai Hock Tay Ai Khim

ƒ Executive Vice President and Head, Credit Risk ƒ Senior Vice President ƒ Senior Vice President, Group Risk, Margin Finance
Management / Retail Operations ƒ 18 years of experience in stockbroking, ƒ 17 years of experience in managing securities
ƒ 28 years of industry experience electronic commerce and public accounting financing

Tan Pei-San Wu Wen Sun Ong Chew Kheng

ƒ Executive Vice President, Office of the CEO ƒ Executive Vice President, IT & Operations / Chief ƒ Senior Vice President, KE Singapore; Advisor, KE
ƒ 13+ years of experience in securities and legal Technology Officer Thailand; Executive Director – KE Vietnam
industry in the US and Singapore ƒ 20 years of experience in stockbroking industry ƒ 18+ years of industry experience

ƒ Management team to be retained, with Ronald Ooi to continue as CEO

₋ Oversee the integration, and execute a successful business plan for the combined entity
₋ Management structure to be communicated early, to give clarity and direction

ƒ Comprehensive retention program to be rolled out to key employees prior to closing

₋ Minimal overlap between the businesses, from a geographical and business line perspective

ƒ Dedicated steering committee to be established shortly

₋ Implement and monitor all aspects of integration process (front office, operations / support, HR, IT, etc.)
₋ Collaboration and cooperation on new business opportunities and realization of synergies

Slide 13
TABLE OF CONTENTS

ƒ TRANSACTION OVERVIEW

ƒ ABOUT KIM ENG

ƒ OUTCOME OF THE COMBINATION

ƒ SALIENT DEAL TERMS & FINANCIAL IMPACT

ƒ CONCLUSION

Slide 14
SALIENT TERMS

Offer Price ƒ S$3.10 in cash per Kim Eng share

– Premium of 15% to last closing price (5 January 2011) and 28% to 1-month VWAP
ƒ Aggregate transaction consideration of S$1,789
S$1 789 mm (RM4,256
(RM4 256 mm)
ƒ Funded by internal and/or external funds
Valuation* ƒ Price to Book (Sep 2010A) of 1.91x
ƒ Price / Earnings (2009A) of 20.0x
Key Conditions ƒ Amongst others, regulatory approvals including from BNM and MAS
Precedent
ƒ Expected to be completed by April 2011
Management ƒ Ronald Ooi will continue to lead Kim Eng for a minimum of 3 years
ƒ Business
B i as usuall for
f Kim
Ki Eng
E
ƒ Maybank Group will appoint nominees to the Board of Kim Eng
Others ƒ Upon completion, Maybank to make an MGO, in accordance with Singapore regulations, to
acquire up to 100% of Kim Eng shares
ƒ Do not plan to maintain/restore Kim Eng’s listing status and intend to exercise our
Compulsory Acquisition rights to acquire all remaining Kim Eng shares, if applicable
threshold is reached
ƒ Maybank to engage in discussions with regulators in Thailand and the Philippines
regarding possibility of a general offer for Kim Eng
Eng’s
s listed investee companies in those
markets

* Based on total shares outstanding, net of treasury shares

Slide 15
PRO FORMA EFFECTS
Group Capital Ratios Remain Strong post Acquisition
Maybank Group – Risk Weighted Capital Ratios
14.15% 14.18%
13.61%
12.38%
ƒ Acquisition to be funded by internally generated
funds and/or external funds
Min requirement
q = 8.0%
%
ƒ Group pro forma capital ratios remain healthy,
and well above the minimum requirements, even
if fully funded via internal funds
– Our Dividend Reinvestment Plan (“DRP”),
well-received
ll i d with
ith close
l t 90% acceptance
to t
As at 30 Sept 2010 Prof orma f or Div. &
DRP (a)
Prof orma (a) + 100%
Krypton (b)
Prof orma (b) + Capital
Raising (Equity and/or rate, successfully strengthened our capital
Sub-Debt)

Maybank Level - Risk Weighted Capital Ratios ƒ The Group intends to boost our capital strength
13.95%
via the issuance of equity, debt or a combination
13.28% 13.28%
of both to fund business growth opportunities
10.97%
ƒ Kim Eng has ample capital to grow its business
Min requirement = 8.0% ƒ As the Acquisition is estimated to be completed
by May 2011, it is not expected to have any
material
t i l effect
ff t on the
th earnings
i off the
th Maybank
M b k
Group for the financial year ending 30 June 2011

As at 30 Sept 2010 Prof orma f or Div. & Prof orma (a) + 100% Prof orma (b) + Capital
DRP (a) Krypton (b) Raising (Equity and/or
Sub-Debt)

Source: Maybank & Kim Eng’s Sep 2010 unaudited financial statements
Key assumptions 3. Assumes acquisition of 100% of Kim Eng’s equity
1. Adjusted for dividend payment and dividend reinvestment (“DRP”) 4. Assumes all Kim Eng's total assets as at 30 Sep 2010 are included in the
2. Adjusted for redemption of RM1.0bn sub-debt computation for risk weighted assets
Slide 16
PRO FORMA EFFECTS
Post Acquisition, Revenue Contribution from Overseas Increases from 29% to 33%

Maybank – FY10 (ended Jun ’10) Kim Eng – FY09 (ended Dec ’09) Pro Forma Combination
+7%
RM12,872 mm RM871mm RM13,743 mm

Others Others Others

Indonesia
4% Indonesia 5% 4%
Indonesia 14%
4%
15% Hong Kong
Hong Kong
1%
10%
+ =
Thailand
Singapore 2%
Singapore Malaysia
Malaysia 54% Singapore
11% 67%
71% 14%
Thailand
28%

Assumes FX of SGD1.00 : RM2.379

Source: Based on management presentations and the latest audited reports of Kim Eng and Maybank

Slide 17
PRO FORMA EFFECTS
Post Acquisition, PBT from Overseas Increases from 21% to 25%

Maybank – FY10 (ended Jun ’10) Kim Eng – FY09 (ended Dec ’09) Pro Forma Combination
RM5,370mm RM323mm RM5,693mm +6%

Others Others Indonesia

Indonesia Others
1% Indonesia 5% Hong Kong 4%
4% 4% 2%
0.3%
Thailand
Singapore Hong Kong
+ =
2%
15% 5%
Singapore
Singapore 18%
Malaysia 55% Malaysia
Thailand
79% 75%
31%

Assumes FX of SGD1.00 : RM2.379

Source: Based on management presentations and the latest audited reports of Kim Eng and Maybank

Slide 18
 PRO FORMA EFFECTS
Post Acquisition, Investment Banking Becomes a Larger Business Driver with 8% Contribution
Revenue
Maybank – FY10 (ended Jun ’10) Kim Eng – FY09 (ended Dec ’09) Pro Forma Combination +7%
RM12,872mm RM871mm RM13,743mm

Int'l Banking Consumer

I t'l Banking
Int'l B ki Consumer
26% Banking
28% Banking
31%
33%
Insurance &
Investment Insurance &

+ =
Asset Mgmt
Banking Asset Mgmt
8%
100% 7%
Investment
Banking Business & Investment Business &
2% Corporate Banking Corporate
Banking 8% Banking
Global Markets Global Markets
11% 19% 10% 18%

Profit Before Taxation Contribution

Maybank – FY10 (ended Jun ’10) Kim Eng – FY09 (ended Dec ’09) Pro Forma Combination +6%
RM5,370mm RM323mm RM5,693mm
Int'l Banking Consumer
21% Int'l Banking
Banking
20% Consumer
Insurance & 27%
Asset Mgmt Insurance & Banking
7% Asset Mgmt 25%
Investment
+ =
7%
Investment Banking
Banking 100% Investment
Business & Business &
2% Banking Corporate
p
Corporate 8%
Global Markets Banking
Banking
22% Global Markets 19%
21%
21%
Assumes FX of SGD1.00 : RM2.379. Assumes pro-rated inter-segmental revenue for each of Maybank’s product segment
Source: Based on the latest audited reports of Kim Eng and Maybank

Slide 19
INDICATIVE TIMELINE
6 Jan April T + 14 to
Date: May
2011 (T) 21 Days

~3 Months Minimum 28 days

Obtain regulatory MGO Offer Period

approvals
„ Execution and ƒ Despatch of Offer
Announcement
Document /
of SPAs with
Yuanta and Launch of MGO „ Closing of MGO
Chairman (earliest
„ Completion of SPAs
Ronald Ooi possible date,
„ Announcement of
MGO assuming no
extensions of
Offer Period)*

Note:
* Latest possible closing date in June, being 60 days from despatch of Offer Document

Slide 20
TABLE OF CONTENTS

ƒ TRANSACTION OVERVIEW

ƒ ABOUT KIM ENG

ƒ OUTCOME OF THE COMBINATION

ƒ SALIENT DEAL TERMS & FINANCIAL IMPACT

ƒ CONCLUSION

Slide 21
MAYBANK AND KIM ENG
Exciting Times Ahead

Extends Investment Banking scope and reach in ASEAN, in line with our regional aspirations

Complementary business and geographic footprint

Strong synergy potential through a complete banking platform

Attractive opportunity to gain access to high growth markets with solid fundamentals

Key management retained to ensure business continuity and continued growth

Slide 22
DISCLAIMER

Cautionary Note on Forward-Looking Statements

All statements other than statements of historical facts included in this document are or may be forward-
looking statements. Forward-looking statements include but are not limited to those using words such as
“
“expect”,
” “anticipate”,
“ i i ” “believe”,
“b li ” “intend”,
“i d” “project”,
“ j ” “plan”,
“ l ” “strategy”,
“ ” “forecast”
“f ” and
d similar
i il expressions
i or
future or conditional verbs such as forecast “will”, “would”, “should”, “could”, “may” and “might”. These
statements reflect the Aseam Credit Sdn Bhd’s (“Offeror” or “ACSB”) and Maybank’s current expectations, beliefs,
hopes, intentions or strategies regarding the future and assumptions in light of currently available information.
Such forward-looking statements are not guarantees of future performance or events and involve known and
unknown risks and uncertainties
uncertainties. Accordingly,
Accordingly actual results or outcomes may differ materially from those
described in such forward-looking statements. Shareholders and investors should not place undue reliance on
such forward-looking statements, and neither the Offeror nor Maybank nor Nomura Singapore Limited, as
financial adviser to the Offeror, undertakes any obligation to update publicly or revise any forward-looking
statements, subject to compliance with all applicable laws and regulations and/or rules of the Singapore
Exchange Securities Trading Limited and/or any other regulatory or supervisory body or agency.

Responsibility Statement
The directors of ACSB and Maybank (including any who may have delegated detailed supervision of this
announcement) have taken all reasonable care to ensure that the facts stated and all opinions expressed in this
announcementt are fair
f i andd accurate
t and
d that
th t no material
t i l facts
f t have
h been
b omitted
itt d from
f thi announcement,
this t andd
they jointly and severally accept responsibility accordingly. Where any information has been extracted or
reproduced from published or otherwise publicly available sources (including, without limitation, in relation to
the Company), the sole responsibility of the directors of ACSB and Maybank has been to ensure through
reasonable enquires that such information has been accurately and correctly extracted from such sources or, as
the case may be,
be reflected or reproduced in this announcement
announcement.

Slide 23