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Corporate UpdateOctober 6, 2009

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Maintain focus on transforming Tat Hong into a

“rental” company:

Lessons learnt from previous downturn

Increasing rental demand from customers to minimise

their risk associated with equipment purchase in view of

uncertain outlook

Increase exposure to government infrastructure projects

in the region

Resiliency of rental revenues and profits relative to

distribution business

Accelerate transformation by growing tower crane rental

business in China

Execution on track

Strategies and Plans for Growth

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3

Revenue by Business Activity

FY2009FY2007

55.0%

($265.4m)

36.8%

($177.8 m)

Equipment

SalesCrane &

General

Equipment

Rental

Parts and

Services

50.9%

($321.8m)

8.8%

($55.4 m)

40.3%

($254.5 m)

8.2%

($39.3m)

Full Year Ended March 31

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Gross Profit by Business Activity

FY2009FY2007

29.7%

($44.3m)

56.8%

($84.7m)68.5%

($165.1m)

13.4%

($32.4m)

18.1%

($43.7m)

13.5%

($20.2m)

Full Year Ended March 31

Target contribution

from rental operations

to exceed 75%

Equipment

SalesCrane &

General

Equipment

Rental

Parts and

Services

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Become the leading and dominant tower crane rental group

in China through M&A & organic growth

Active exploration of value-accretive M&As of tower crane

rental companies in major first and second tier cities in China:

Announced in August 2009 a JV with a leading tower crane rental

company Guangzhou Hailin to form Sichuan Tat Hong Yuan Zheng

Machinery Construction Co., Ltd. Completion expected in

November 2009

Various stages of negotiation with major rental companies in

Beijing, Dalian, Shenzhen, Tianjing & Zhejiang

Aggressively grow to at least 3 times current fleet size in 2

years

Plans to increase higher-tonnage fleet size more aggressively than

mid-sized fleet

Execution on Track

Strategies and Plans for Growth

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Expansion beyond traditional markets

Singapore and Australia already established as strong

pillars of growth

Company’s growth opportunities lies in establishing

strong business connections and networks in China as

well as gaining experience in other parts of Asia to

expand beyond its traditional markets

Strategies and Plans for Growth

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Update on Tower

Crane Segment

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FY2008 FY2009 Q1'10

8.9

24.7

8.0

0

5

10

15

20

25

Fastest-growing Contributor

Revenues currently derived from 2 major operating subsidiaries:

China Nuclear Huaxing Tat Hong – 210 units

Jiangsu Zhenghe Tat Hong – 110 units

Rapid expansion of tower crane rental fleet since formation in FY2008

Utilisation rates holding steady with major customers in infrastructural

development sector (nuclear power generation, railway stations, stadiums,

etc)

S$ millionTower Crane Rental Revenues

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Growing Tower Crane Fleet

Tower Crane Fleet Profile

Size

(Tonnes-Metres)

No. of Cranes

Available

(as at March 31, 2008)

No. of Cranes

Available

(as at March 31, 2009)

No. of Cranes

Available

(as at June 30, 2009)

< 99 TM 83 76 88

100 – 199 TM 49 64 84

200 – 299 TM 58 105 122

> 300 TM 20 14 16

Others 6 3 4

Total Units 216 262 314

Total Tonnage-

Metres

35.462 49,040 56,045

Overall

Utilisation Rate

88%(estimated figure with less than

6 months’ data available)

73.3% 74.7%

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Spending on Infrastructural Development in

China still Strong

“Asia’s giant has gotten down to business on the infrastructure

spending plan and as a result the activity in China’s infrastructure

sector has been one of the highest globally..In BMI’s Q209 China

Infrastructure Report we maintain our forecasted growth levels for

2009 and 2010 at 7%... For 2009 BMI forecasts that the industry

value will be CNY1,770bn and will rise to CNY1,882bn in 2010.”

(Source: Business Monitor International, Q2 2009)

Infrastructure investment is at the heart of China’s stimulus, with

investment in railways, highways, airports, power grids, rural

infrastructure and disaster reconstruction (excluding construction of

buildings) estimated at RMB2.6 trillion or 65% of overall

investment …going by the 11th Five Year Plan, roads, rail and power

generation, power transmission and generation appear to be priorities.

(Source: “Asian Infrastructure”, CLSA reasearch report, April 2009)

Market Prospects

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Demand for Tower Cranes remains healthy

“…Large-scale governmental infrastructure programmes and

prestigious projects like Expo 2010 in Shanghai still provide healthy

demand, especially for large capacity tower cranes. With enhanced

emphasis on environmental protection, the generators of modern coal-

fired power plants get larger and more complex…and require cranes

with capacities of 80t-120t.” (Source: Cranes Today, March 9, 2009)

“Construction companies are increasingly turning to rental after

finding that the cranes that they bought to win a project are idle once it

has finished…In recent years, the Chinese government has invested

more in wind power construction, so wind turbine lifts are a big driver

of demand for large cranes.” (Source: Cranes Today, December 8,

2008)

Market Prospects

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Entry of Strategic Investor

Investment agreement with AIF Capital III Shipping & Logistics

Limited signed on August 3, 2009

Issuance of 65 million convertible redeemable preference

shares (CRPS) at an Issue Price of S$1.00 per CRPS approved

Upon full conversion into ordinary shares, this will represent

approximately 11.41% of Tat Hong’s enlarged and issued paid-up

capital (1)

80% of the net proceeds of approximately S$63.5 million will be

used to fund the Group’s expansion in Australia and China;

balance for working capital

Balance sheet strengthened – net gearing will be reduced from

0.57 times to 0.35 times upon issuance

Nominee Andy Tse, MD of AIF Capital, to be appointed onto Tat

Hong Holdings’ Board

(1) As at October 5, 2009

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About AIF CapitalAndy Tse

Managing Director

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Established in 1994

One of the largest Asia-based independent private equity firms; success spans nine countries, 33 investments

Manage in excess of US$1.5 billion;

Investors in its funds include:

Governments and government-linked entities (including Singapore)

insurance companies and major corporate and government pension funds from North America, Australia, Asia and the Middle East and Europe, and

multilateral agencies such as International Finance Corporation of the World Bank Group, Commonwealth Development Corporation of the UK, and The Asian Development Bank.

Pan-Asian Private Equity Fund

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Regional Presence

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Investment Focus

Focused on companies that would benefit from:

Asia’s rising domestic consumption

Asian government spending on infrastructural

projects

Integrating into the global supply chain

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Board Level

Participation

Recruiting and development of management talent

Structuring and implementation of incentive compensation schemes

Development of budgets and long-term strategic plans

Development and execution of financing strategies

Corporate

Governance and

Monitoring

Implement best practices

Ensure transparency and accountability

Reporting and monitoring systems

Financial

Improvements

Strengthening financial oversight

Advising on debt and equity financing

Driving Growth Introducing new markets and potential strategic partners

Value Creation

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Current Portfolio in Singapore

Olam International Limited

(in S$ mil) 6/2002 6/2009

Revenue 1,588.5 8,726.4

PAT 25.0 252.0

Oceanus Group Limited

(in RMB mil) 12/2008 6/2009

Revenue 319 138.5

PAT 193.5 187.2

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Greater China

AMH Media Holdings Limited

Charm Communications Incorporation

CN Innovations Holdings Limited

Hailing Pharmaceutical Company Limited

Meiya Power Company Limited

CSX World Terminals

India

Bharti Infratel

BioPlus

Catholic Syrian Bank

Yes Bank Limited

Bharti Airtel

GVK Industries

Rest of Asia

Seah Besteel

PT Excelcomindo

TelecomAsia

Orascom Telecom

Holdings Ltd

Selected Portfolio Outside Singapore

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Intravenous

Pack

Injectable

Drugs

Capsules

and tablets

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Energy

Transport

Manufacturing

Media

Pharmaceuticals

Aquaculture

national Telecom

Investments in China

GUANGXI

JIANGSU

HUBEI

HEBEI

HUNAN

SICHUAN

GUANGDONG

ZHEJIANG

FUJIAN

TAIWAN

BEIJING

TIANJIN

GANSUSHANDONG

HAINAN

YUNNAN

Since 1994 AIF Capital has invested in 14 multi-asset platform

investments in toll roads, energy, ports, engineering,

manufacturing, pharmaceuticals, aquaculture and

media.

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One of the largest Asian players in equipment

distribution and rental businesses

Resilient and proven business model

Experience in sailing through storms and crises

Excellent management

Strong and highly regarded independent board

Synergy with core focus of AIF – emerging Asia

Industry at a inflection point for high growth

Why Tat Hong?

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Thank You

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Infrastructural/Oil & Gas Projects

ASEAN & HK

Recently Completed Projects Sentosa IR

Shell ECC in Pulau Ular

Circle Line (MRT)

Sentosa Link Bridge

Lucite Alpha 1 in Jurong Island

Palm Jumeriah Monorail in Dubai

Shadeed Dri Plant in Oman

Ongoing Projects Exxon Mobil - Singapore Parallel

Train in Jurong Island

Marina Coastal Expressway (MCE)

Marina Bay Sand IR

Downtown Line Stage 1 (MRT)

Marina Bay Front

Cantho Bridge in Vietnam

Melaka PSR2 project in Malaysia

Australia

Gorgon Island oil & gas projects

Adelaide desalination plant

Liquefied Natural Gas project, North West Shelf, WA

High-grade iron ore mine expansion project, WA

Cape Preston power stations, WA

China

Dalian Red riverbank nuclear

power station

Xiamen underground west station

Jinan West railway station

Jinglu elevated railway station