Quarter 4, 2012 (“4Q12”) vs. Quarter 4, 2011 (“4Q11”)
The Group’s 4Q12 pre-tax profit (“PBT”) was 72% higher than previous year corresponding quarter.

This significant increase came from:-

i) Construction & Road Maintenance Division – higher road length maintained coupled with higher contract rate and more periodic maintenance work;

ii) Construction Materials & Trading Division – benefited from the state government special funding for state and rural road improvement and maintenance, the economic activities in Samalaju Industrial Park and Federal road maintenance programme;

iii) 4Q11 PBT was impacted by the write off of expenses relating to project under study totalling RM21.89 million; and

iv) The reduced profitability by the Cement Division in the current year fourth quarter had, however, reduced the difference between the two quarters.

Year-to-date, 2012 (“YE2012) vs. Year-to-date, 2011 (“YE2011)

The Group’s revenue continued to be driven by the Cement Division, followed by the Construction Materials & Trading and the Construction & Road Maintenance Divisions.

The Group’s 2012 PBT was driven by the Construction & Road Maintenance Division, followed by the Cement and the Construction Materials & Trading Divisions. The Samalaju Development and the Property Development Divisions contributed sizeable PBT in YE2012 too.

The Cement Division recorded a 34% lower PBT in YE2012 over the preceding year. Despite the higher sales volume, this division’s PBT was dragged down by the underperformance of CMS Clinker due to the prolonged delay in the clinker plant upgrading project. This division is still a considerable contributor to the Group’s PATNCI though not the largest PBT contributor for YE2012 as compared to the past years.

The Construction & Road Maintenance Division became the largest contributor to the Group’s PBT surpassing the Cement Division for the first time and registered a 36% jump in PBT mainly due to the increase in contract rate for state road routine maintenance.

Benefiting from JKR sales through the state government special funding, the Construction Materials &

Trading Division’s PBT increased by 62%.

The Property Development Division recorded a 867% higher PBT in YE2012 over the preceding year due largely to the recognition of profits for the sale of land in YE2012.

The Samalaju Development Division which commenced operations in 2nd quarter of 2011 reported a commendable PBT in 2012 with more blocks of lodges built and occupied, thus increasing revenue and profitability.

Year-to-date, 2012 (“YE2012”) vs. Year-to-date, 2011 (“YE2011”)

The Strategic Investments Division (excluding the associates) recorded higher loss in YE2012 compared to YE2011 as a higher loss was reported by the education company but mitigated by a higher profit recorded by our private equity company.

Profit was recorded in the Dormant/Inactive Division in YE2012 as a result of the receipt of RM8.5 million settlement sum from Jerneh by our IT company following the favourable outcome of arbitration.

The Group recorded lower shares of profit from its associates in YE2012 compared to YE2011. The Group’s new associate namely OM Materials (Sarawak) Sdn Bhd recorded a marginal loss in YE2012.