KLIA Aeropolis

Your Catalyst for Growth

Malaysia Airports Today

* Passengers = Malaysia + ISG in 2015; Airlines = scheduled flights operating out of KUL + ISG as of March 2016

We have evolved into a world leading airport operator group…

2nd Top Performing Government Linked Company (GLC, Public Listed) in Shareholder Return

Total shareholder return over the last decade is more than 500%

2nd Largest Airport Operator Group in the WorldCombined with SGIA, the whole Malaysia Airport

group handles about 110 mppa (No. 1 is AENA @ 195 mppa)

• Catalyst for Aeropolis development• Investment of RM335 mil, GDP of RM235 mil

and 2,577 jobs created by 2020

• 1st GLC to venture into Turkey in 2008• 1st Asian Entity to fully own a European

Airport - Full acquisition in 2015

Facilitated Mitsui’s 1st foray to SEA, slated to be the largest outlet park in SEA

Europe’s fastest growing airport for the past five years

KLIA Aeropolis Concept: GROW WITH US

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In line with our vision to become “Global Leader in Creating Airport Cities”

Aerospace & Aviation

MICE & Leisure

Lead by Ministry of International Trade and Industry, Malaysia

Malaysia Aerospace Industry Blueprint 2030

Tourism NKEA and KL Tourism Master Plan 2015 – 2025

Malaysia Logistics & Trade Facilitation Masterplan (2015-2020)

Air Cargo & Logistics

Lead by Ministry of Transport

Lead by Ministry of Tourism

KLIA Aeropolis recognized as a National Priority

Prime Minister Datuk Seri Najib Razak presents the 2016 Budget at parliament, October 23, 2015

PM Budget 2015 Announcement: Aeropolis development to attract both FDI and DDI of up to RM7 billion within the next 5-10 years

Government collaboration & alignment with all agencies to further boost the Aeropolis development plans

National Aerospace Industry

Coordinating Office (NAICO)

Malaysian Aerospace

Council (MAC)

Malaysia’s Aerospace Ecosystem has evolved and matured over the years

1st Malaysia Aerospace Blueprint 1997-2015 2nd Malaysian Aerospace Industry Blueprint 2030

TodayPre-2000

~300Companies

14Companies

• Subang Aerospace emerged as the first mature aerospace park

KLIA Aeropolis (3x Subang) to play an important role in the new blueprint and emerge as a

complete aerospace park / ecosystem

Malaysia Airports’ Aerospace Ecosystem expanding beyond KLIA Aeropolis

Development of clusters along the Subang-KLIA-Melaka corridor in line with the national agenda…

Subang

KLIAMelaka

• Maintenance, repair and operations (MRO)

EPP 1

• Engineering servicesEPP 5

• Original Equipment Manufacturing (OEM)

EPP 7

• Developing SMEs in the global aerospace manufacturing industry

EPP 8

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Almost 20% of current Malaysia Ecosystem is located on Malaysia Airports’ land in Subang & KLIA Aeropolis

Subang and KLIA Aeropolis has the building blocks to support the aerospace ecosystem

Subang KLIA Aeropolis

Today, Subang has evolved into a Mature Aerospace Ecosystem

1. MRO Hub of South East Asia (SEA)- GE Aviation (commercial)- AIROD / NADI (military)

2. Aerospace assemblies and manufacturing - Spirit Aerosystems

3. Engineering services and training- UniKL MIAT-MARA

4. Centre of Excellence for Global Turbine Asia (GTA) - Safran Helicopter Engines

5. First simulator centre in ASEAN - Airbus Helicopter Malaysia

6. FBO & Jet Aviation Centre- Skypark

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26

3

4

5

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Land available for development

Unlocking value of remaining land to support Subang Aerospace Ecosystem

• Aero-manufacturing • Component MRO

Capacity for 5 large (~5 to 10 acre) or 10 small/med (1 - 5 acre) factory/repair centers or a mix

Up to 60 acres remaining for development

Spirit Aerosystems in Subang is the “Single Source” provider of A320’ front leading edge manufacturing

Airbus Helicopters Malaysia comprises an office building, a dedicated hangar and simulator centre which is the 1st of its kind in the ASEAN region

Conceptual plan for remaining 60 acres at Subang

KLIA Aeropolis offers an extension from existing Subang Ecosystem

Over 1000 acres earmarked for aerospace development at KLIA Aeropolis• Original equipment manufacturing (OEM) • Aero-manufacturing • Engineering & Design • Commercial business, offices

Phase 1: ~115 acres has capacity for roughly 10 large (~5 to 10 acre) or 30 small (1 - 2 acre) factory/repair centers or a mix

KLIA Aeropolis: connecting the dots through…

We aim to create the Ideal Ecosystem via the Aerospace Belt

Cost Effective Labour

Proximity to Transportation Hubs

Nimble and Flexible Government Interface

Strong Training Programs

Strong Incentive Packages

Improved ability to serve customers

Reduced operating costs

Strengthened segment profile

Low start-up and training costs

Increased sales

Thank You