IJM Berhad : divisions showing signs of strong recovery

*Revenue and PBT exclude that of the Plantation Division following the completion of the disposal of IJM Plantations Berhad on 6 September 2021.

** PATMI and earnings per share include the financial results of IJM Plantations Berhad.

Key highlights:

• RM1.3 billion of new construction projects amassed in the financial year-to-date, bringing outstanding order book to RM4.2 billion as at 31 December 2021
• Property Division's sales of RM1.0 billion in 3Q FY2022 underscores healthy demand, bringing year-to-date sales to RM2.1 billion, putting us on course for record level local sales
• Industry Division orders have been picking up. Balance order book currently above 1 million tons, highest since 2016
• Toll operations' traffic volume is seeing quick recovery post-lockdown

Petaling Jaya, 24 February 2022 - IJM Corporation Berhad (IJM) today released its financial results for the third quarter ended 31 December 2021 (3Q FY2022). Excluding the results of discontinued operations, the Group reported revenue and PBT for 3Q FY2022 at RM1,268.0 million and RM158.6 million, respectively.

CEO & Managing Director of IJM, Mr Liew Hau Seng said: "The Group's business operations started to recover during the quarter as economic activities in more states picked up with the transition into Phase 3 of the National Recovery Plan. The momentum of improving conditions is encouraging."

For the quarter, revenue and PBT of the Construction Division amounted to RM427.0 million and RM33.6 million, respectively. The Group's Property Division reported revenue of RM384.0 million in 3Q FY2022 while PBT stood at RM61.3 million. The Industry Division saw a 27.9% increase in revenue to RM253.6 million in 3Q FY2022 from higher deliveries of piles and quarry products in tandem with the reopening of economic activities and export business. The Division recorded a PBT of RM17.2 million in the quarter. Revenue of the Group's Infrastructure Division for the current quarter increased by 5.5% to RM203.4 million as the Toll and Port operations recovered since the lifting of the movement restrictions. Correspondingly, the Division reported an increase in PBT by 3.3% to RM46.1 million for the quarter compared to 3Q FY2021.

The financial results of the Plantation Division ceased to be recognised in the quarter following the completion of the disposal of IJM Plantations Berhad on 6 September 2021.

Healthy job wins and strong sales momentum

As business activities continue to recover, the Group expects its operational performance to gradually improve going forward. With catalysts seen across most of the Group's business divisions, coupled with a healthy balance sheet (net gearing of 0.28 times), the prospects of the Group are encouraging.

The Group's outstanding Construction order book currently stands at RM4.2 billion. This includes three construction contracts, secured in the quarter, worth RM680 million: Phase 2 of The ERA @ Duta North mixed development by JKG Land Bhd and Jendela Residences by Sime Darby Property Bhd, both in Kuala Lumpur, as well as a factory expansion for Hotayi Electronic (M) Sdn Bhd in Penang. These three awards bring IJM Construction's contracts won to eight projects worth RM1.34 billion in the financial year.

The Property Division registered sales of RM1.0 billion in 3Q FY2022 on the back of strong take-up of the Group's property offerings, taking the 9M FY2022 sales tally to RM2.1 billion and puts the Division on course to achieve its highest ever annual local property sales. Unbilled sales of RM2.3 billion is expected to anchor the financial performance of the Property Division in the short to medium term.

The Industry Division's performance is expected to continue improving in line with the resumption of construction activities. The Division's balance order book, which is in excess of 1 million tons, is the highest since 2016 and is expected to underpin the Division's performance in the near term while the Division continues with business rationalisation efforts through product quality improvements, cost optimisation and process efficiency enhancements.

The Group's Toll business is seeing a steady improvement in road traffic volumes to near pre-Covid levels following the relaxation of movement controls under the National Recovery Plan.

On the Group's prospects, Mr Liew added, "We are pleased that we have been able to continue our track record of delivering on our financial performance while maintaining a robust balance sheet. With the resilience we have built throughout the crisis, we are confident that we are well-positioned to financially and strategically capitalise on the opportunities emerging from a post-pandemic recovery."

Consistent with the Group's past practices, no dividend was declared in the third quarter.

- end -

About IJM Corporation Berhad

IJM Corporation Berhad ("IJM"), formed in 1983, today ranks as one of Malaysia's leading conglomerates with an international footprint forged by its four core businesses: construction, property development, industry (quarrying and the manufacture of building materials) and infrastructure concessions. IJM holds leading positions across all its business divisions. Its growth is the direct result of strong leadership, dedicated employees, financial prudence and commitment to good governance and quality.

The Group presently has a market capitalisation of around RM5.6 billion and as of December 2021, the Group employed over 3,000 employees and had total assets of RM21.8 billion.

For more information, visitwww.ijm.com

For media enquiries, please contact:

Ms. Mandy Chen, Corporate Communications, atmandychen@ijm.comor + 60 12 607 6121

Mr. Shane Guha Thakurta, Investor Relations, atshanethakurta@ijm.comor + 60 3 7985 8041