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MY E.G. SERVICES BERHAD Corporate Update

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Page 1: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

MY E.G. SERVICES BERHADCorporate Update

Page 2: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

> 20,000

ITEMS

DELIVERED

EACH

BUSINESS DAY

> 500

to assist citizens

and businesses

KIOSKS

Y-O-Y GROWTH

STRONG TAKE-UP OF SERVICES DUE TO OUR

REPUTABLE SERVICE AND DELIVERY CHANNELS

> 100

e-service

centres

to assist citizens

and businesses

2,500Size of workforce

of serving Malaysians

15 YEARS

30%

MINIMUM

consistent dividend

payout policy

Commercial

Services

key growth drivers

e-GOVERNMENT

SERVICES

STABLE AND CONTINUE TO GROW

RM

5.1BILLION

MARKET

CAPITALIZATIONas at 22-Feb-2016

Communication

Link

between the Malaysian

Government and its

citizens & businesses

MYEG, at a glance

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Page 3: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

1. Introduction

2. Segmental overview

3. Financials

4. Other information

3

Page 4: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

Government to Citizen (“G2C”) project

Government Agencies Delivery Channels

Services:

Testing, issuance & renewal of drivers’ licenses

Renewal of vehicle road tax & auto insurance

Renewal of foreign worker’s permit

Online Police Summons Checking & Payment

Payment of municipal council fees

Bankruptcy / liquidation status searches

Application of MyKad Replacement, M’sia’s ID

card

Business Service Tax Monitoring

End Users

Note: The Malaysian government launched its E-Government programme to reinvent itself and lead the country into the new “Information Age”. The rationale behind the development of the e-services project is the belief that all Malaysians will use at least one of the services identified under the e-services on a monthly basis or annual basis.

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Page 5: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

Road Transport Department

Royal Malaysia Police

National Registration

Department of Malaysia

Kuala Lumpur City Hall

Pusat Pungutan Zakat

Malaysia Department of

InsolvencyInsolvency search (status of bankruptcy/ liquidation)

Summons checking and payment

MyKad replacement

Assessment/ compound/ licence payment and

information service

Payment of Zakat/ Tithe

Testing, issuance and renewal of driver’s license,

Licensing of vehicles, Vehicle ownership transfer

Issuance and renewal of foreign worker’s permit,

Business Service Tax data collect and transmitRoyal Malaysian Customs

Department

Immigration Department

Provides electronic communication link to enhance effectiveness and efficiency of the Government

Anchor services

Other services

5

Page 6: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

Our e-service centres in Malaysia

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Page 7: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

1. Introduction

2. Segmental overview

3. Financials

4. Other information

7

Page 8: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

Road transport segment

8

Driving licence renewals

Road tax renewals Online vehicle

ownership transfer

E-Government Services

Auto Insurance

Motor Vehicle Transactional Portal

Auto Loans

P2P Lending

Commercial Services

Potential Future Services

Page 9: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

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Immigration segment

Note: Started online work permit renewal for foreign workers (domestic maid only) in 2010. Continue to provide online work permit renewal for all category of foreign workers in 2013. In May-2015, government discontinued work permit renewal (foreign workers category) at government counters and renewals can be performed online through MYEG.

Remittance Services

Foreign Workers Licensed Dormitory

Foreign Workers Insurance

Rehiring Program

Online Work Permit

Renewals

Page 10: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

Royal Malaysian

Customs

Department

Note: Project to monitor sales transactions for Goods and Services Tax (“GST”) licence holders to ensure accurate declaration of tax collected. Pilot Project (proof of concept) in

selected Klang Valley outlets completed successfully. The Project will be divided into two phases. Phase 1 will cover the GST licence holders in Categories C and D (comprised restaurants, pubs and massage outlets). Phase 2

will cover the remaining categories.

Business outlets(license holders)

10

Custom tax segment

Custom tax monitoring

system

Page 11: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

1. Introduction

2. Segmental overview

3. Financials

4. Other information

11

Page 12: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

Financial snapshot

Note 1: Increase in operating cash flow and sale of treasury shares. Source: Annual reports 2012 to 2016, quarterly report 1Q17 (http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-profile.html?stock_code=0138)

12

67 76

110

142

282

79

-

50

100

150

200

250

300

FY12 FY13 FY14 FY15 FY16 1Q17

RM

' m

Revenue

119 140

177

274

400 433

-

50

100

150

200

250

300

350

400

450

500

Jun12 Jun13 Jun14 Jun15 Jun16 Sept16

RM

' m

Shareholders equity

12 12 18

12

107 104

-

20

40

60

80

100

120

140

RM

' m

Borrowings

37 40 42

60

75

142

40

-

20

40

60

80

100

120

140

160

FY11 FY12 FY13 FY14 FY15 FY16 1Q17

RM

' m

Expenses

22 27 35

50

68

143

40

38%41%

46% 46% 48% 51% 51%

0%

10%

20%

30%

40%

50%

60%

70%

-

20

40

60

80

100

120

140

160

RM

' m

PAT

5 10 18 22

132

210

153

-

50

100

150

200

250

RM

' m

Cash and bank balances

Page 13: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

Revenue (RM' m) 12.0 13.3 15.6 17.9 14.2 16.9 18.3 17.5 16.1 19.2 20.4 20.8 20.4 23.5 30.6 35.4 27.7 29.8 40.0 45.1 60.7 63.5 70.1 87.4 78.6

Profit (RM' m) 2.8 5.8 6.3 7.9 5.4 6.7 7.2 8.1 6.5 8.1 9.5 10.9 8.5 11.2 13.7 16.6 12.0 14.0 19.0 22.9 28.1 30.3 33.2 50.9 40.3

Profit margin (%) 23% 44% 40% 44% 38% 40% 39% 46% 40% 42% 47% 52% 42% 48% 45% 47% 43% 47% 48% 51% 46% 48% 47% 58% 51%

0%

10%

20%

30%

40%

50%

60%

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

RM

' m

Quarterly trend - revenue and profitability

Continued penetration of e-government service

Source: Quarterly reports (http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-profile.html?stock_code=0138)

13

The increase in revenue was mainly driven by services under immigration segment

Page 14: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

Good financial and treasury management

Healthy cash flows support dividend payout

Source: Annual reports 2012 to 2016, quarterly report 1Q17 (http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-profile.html?stock_code=0138)

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32.8 25.9 44.3

26.3

143.9 162.4

-38.1 (50.0)

-

50.0

100.0

150.0

Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Sept16

RM

' m

Operating cash flow

6.6 6.6 8.4 10.8

15.0

22.8

43.3

32%30% 31% 31% 30%

33%30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

(5.0)

5.0

15.0

25.0

35.0

45.0

FY10 FY11 FY12 FY13 FY14 FY15 FY16

RM

' m

Historical dividend trend

Dividend Payout (RM' m) Payout Ratio (%)

Page 15: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

1. Introduction

2. Segmental overview

3. Financials

4. Other information

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Page 16: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

External recognitions

201120152016

Rank #4

Best Managed Public

Companies

March 20, 2015

Rank #5

Best Corporate

Governance

March 20, 2015

Rank #2

Best Mid Cap

March 20, 2015

MY E.G. SERVICES

BERHAD

Best Performing

Stock Award

October, 2015

BEST MANAGED

COMPANIES

2013

Best Managed Company in

Malaysia – Small Cap

ASiAMONEY

2013

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Page 17: Corporate Update - Fundamental Analysis · Corporate Update > 20,000 ITEMS DELIVERED EACH BUSINESS DAY > 500 to assist citizens and businesses KIOSKS Y-O-Y GROWTH STRONG TAKE-UP OF

www.myeg.com.my

This presentation comprised information that are publicly available and may contain statements regarding the

business of MY E.G. Services Berhad and its subsidiaries (“MYEG”) that are based on historical information

which may not be reflective of the future results, as well as of a forward looking in-nature and are therefore

based on management’s forecasts, assumptions about future developments. Forward looking assumptions

involve certain uncertainties and unknown risks as they relates to future events. Actual results, performance

and achievements may vary materially from those forecast or targeted due to various internal and external

factors.

Potential uncertainties and risks may arise from inter alia general economic conditions, government policy and

regulatory developments, foreign exchange fluctuations and interest rate changes. The reader is cautioned to

not unduly rely on these forward-looking statements and they should not be regarded as representations or

warranties that the plans or objectives of MYEG will be achieved. We do not undertake any duty to publish any

update or revision of any forward-looking statements. The information contained here has not been

independently verified. No representation or warranty expressed or implied is made as to, and no reliance

should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions

contained in this presentation. Neither MYEG or any of its affiliates, advisers or representatives shall have any

liability whatsoever for any loss arising, whether directly or indirectly, from any use, reliance or distribution of

this presentation or its contents. You should rely on your own evaluation to assess the risks and merits of

MYEG.

This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or

subscribe for shares in MYEG.

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