UMW HOLDINGS BERHAD

(COMPANY NO. 090278-P)

(INCORPORATED IN MALAYSIA)

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
SECOND QUARTER ENDED 30TH JUNE 2010

(The Figures Have Not Been Audited)

CURRENT QUARTER ENDED 30/06/2010 RM’000 / COMPARATIVE QUARTER ENDED
30/06/2009 RM’000 / 6 MONTHS CUMULATIVE TO DATE
30/06/2010 RM’000 / COMPARATIVE
6 MONTHS CUMULATIVE TO DATE 30/06/2009
RM’000
Continuing Operations
Revenue
Operating Expenses
Other Operating Income / 3,282,075
(2,909,800)
25,250 / 2,581,069
(2,425,014)
25,425 / 6,315,232
(5,758,916)
118,551 / 4,930,872
(4,705,158)
46,383
Profit From Operations / 397,525 / 181,480 / 674,867 / 272,097
Finance Costs
Share Of Profits Of
Associated Companies
Investment Income / (14,846)
49,066
10,521 / (16,017)
12,623
7,382 / (26,202)
79,588
19,107 / (26,160)
46,989
16,279
Profit Before Taxation
Taxation / 442,266
(99,272) / 185,468
(42,104) / 747,360
(172,098) / 309,205
(67,659)
Profit For The Period / 342,994 / 143,364 / 575,262 / 241,546
Other Comprehensive Income:
Translation Of Foreign
Operations
Net Asset Accretion From
Share Issue Of A Jointly-
Controlled Company
Cash Flow Hedge / 1,130
-
1,315 / (2,646)
-
- / (1,462)
-
566 / 5,565
2,468
-
Other Comprehensive
Income Net Of Tax / 2,445 / (2,646) / (896) / 8,033
Total Comprehensive
Income For The Period / 345,439 / 140,718 / 574,366 / 249,579
Profit For The Period
Attributable To:
Owners Of The Company
Non-Controlling Interests / 211,697
131,297 / 79,431
63,933 / 344,553
230,709 / 145,389
96,157
342,994 / 143,364 / 575,262 / 241,546
Total Comprehensive
Income Attributable To:
Owners Of The Company
Non-Controlling Interests / 214,083
131,356 / 76,107
64,611 / 343,913
230,453 / 151,604
97,975
345,439 / 140,718 / 574,366 / 249,579
EPS Attributable To Owners
Of The Company:
Basic EPS For The Period (Sen)
Diluted EPS For The Period (Sen) / 18.74
18.62 / 7.24
7.19 / 30.50
30.31 / 13.26
13.15

(The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Audited Annual Financial Report for the year ended 31st December 2009)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS / (UNAUDITED)
AS AT 30/06/2010
RM’000 / (AUDITED)
AS AT 31/12/2009
(RESTATED)
RM’000
Non-Current Assets
Investment In Associates
Investment Properties
Property, Plant And Equipment
Prepaid Land Lease Payments
Leased Assets
Deferred Tax Assets
Derivative Assets
Intangible Assets
Other Financial Assets / 1,533,463
1,666
2,923,323
18,927
172,844
27,192
36,066
286,407
324,905 / 1,453,676
1,714
2,780,553
20,333
169,940
26,733
-
241,498
193,580
5,324,793 / 4,888,027

Current Assets

Deposits, Cash And Bank Balances
Trade Receivables
Other Receivables
Derivative Assets
Inventories / 2,046,585
737,665
263,878
4,351
1,334,953 / 1,733,290
641,881
255,390
-
1,303,573
Non-Current Assets Held For Sale / 4,387,432
3,535 / 3,934,134
3,535
4,390,967 / 3,937,669
TOTAL ASSETS / 9,715,760 / 8,825,696
EQUITY AND LIABILITIES
Equity Attributable To Owners Of The Company
Share Capital
Share Premium
Capital Reserve
Foreign Exchange Reserve
Share Option Reserve
Cash Flow Hedge Reserve
Retained Profits / 568,645
620,182
5,793
41,460
41,038
365
2,841,958 / 559,658
542,045
5,793
42,666
41,038
-
2,582,659
Non-Controlling Interests / 4,119,441
1,233,092 / 3,773,859
1,145,909
TOTAL EQUITY / 5,352,533 / 4,919,768

Non-Current Liabilities

Long Term Liabilities
Provision For Liabilities
Deferred Tax Liabilities
Derivative Liabilities / 1,926,755
59,532
19,710
23,268 / 1,850,598
65,488
22,107
-
2,029,265 / 1,938,193

Current Liabilities

Bank Overdrafts
Short Term Borrowings
Trade Payables
Other Payables
Derivative Liabilities
Provision For Liabilities
Taxation
Dividend Payable / 74,488
383,769
819,608
757,622
3,977
40,630
151,512
102,356 / 34,270
259,874
761,598
719,874
-
64,183
71,732
56,204
2,333,962 / 1,967,735
TOTAL LIABILITIES / 4,363,227 / 3,905,928
TOTAL EQUITY AND LIABILITIES / 9,715,760 / 8,825,696
Net Assets Per Share (RM) / 3.6222 / 3.3716

(The Condensed Consolidated Statement of Financial Position should be read in conjunction with the Audited Annual Financial Report for the year ended 31st December 2009)

3

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30TH JUNE 2010

I------I------ATTRIBUTABLE TO OWNERS OF THE COMPANY ------I
<------NON-DISTRIBUTABLE ------>
SHARE
CAPITAL
RM’000 / SHARE
PREMIUM
RM’000 / CAPITAL
RESERVE
RM’000 / FOREIGN EXCHANGE
RESERVE
RM’000 / SHARE OPTION
RESERVE
RM’000 / CASHFLOW HEDGE
RESERVE
RM’000 / RETAINED
PROFITS
RM’000 / TOTAL
RM’000 / NON-
CONTROLLING
INTERESTS
RM’000 / TOTAL
EQUITY
RM’000
6 MONTHS PERIOD ENDED
30TH JUNE 2010
At 1st January 2010 / 559,658 / 542,045 / 5,793 / 42,666 / 41,038 / - / 2,582,659 / 3,773,859 / 1,145,909 / 4,919,768
Effects of applying FRS 139 / - / - / - / - / - / (201) / 17,102 / 16,901 / (6,130) / 10,771
Restated balance at 1st January
2010
Changes in equity for the period to 30th June 2010
Acquisition of a subsidiary
Reduction of minority interest in
a subsidiary
Issue of ordinary shares pursuant
to ESOS
Dividends distributed to equity
holders
Total comprehensive income
for the period / 559,658
-
-
8,987
-
- / 542,045
-
-
78,137
-
- / 5,793
-
-
-
-
- / 42,666
-
-
-
-
(1,206) / 41,038
-
-
-
-
- / (201)
-
-
-
-
566 / 2,599,761
-
-
-
(102,356)
344,553 / 3,790,760
-
-
87,124
(102,356)
343,913 / 1,139,779
1,805
(2,854)
-
(136,091)
230,453 / 4,930,539
1,805
(2,854)
87,124
(238,447)
574,366
At 30th June 2010 / 568,645 / 620,182 / 5,793 / 41,460 / 41,038 / 365 / 2,841,958 / 4,119,441 / 1,233,092 / 5,352,533
6 MONTHS PERIOD ENDED
30TH JUNE 2009 (RESTATED)
At 1st January 2009 / 546,072 / 414,651 / 5,793 / 50,442 / 61,169 / - / 2,444,126 / 3,522,253 / 1,083,167 / 4,605,420
Changes in equity for the period to 30th June 2009
Acquisition of subsidiaries
Increase in share capital of
subsidiaries
Reduction of minority interest
in subsidiaries
Issue of ordinary shares pursuant
to ESOS
Dividends distributed to equity
holders
Total comprehensive income
for the period / -
-
-
4,285
-
- / -
-
-
28,240
-
- / -
-
-
-
-
- / -
-
-
-
-
6,215 / -
-
-
-
-
- / -
-
-
-
-
- / -
-
-
-
(123,484)
145,389 / -
-
-
32,525
(123,484)
151,604 / 4,144
22,706
(5,151)
-
(147,178)
97,975 / 4,144
22,706
(5,151)
32,525
(270,662)
249,579
At 30th June 2009 / 550,357 / 442,891 / 5,793 / 56,657 / 61,169 / - / 2,466,031 / 3,582,898 / 1,055,663 / 4,638,561

(The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Audited Annual Financial Report for the year ended 31st December 2009)

3

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED

30TH JUNE 2010

6 MONTHS

ENDED

30/06/2010

RM’000

/ /

6 MONTHS

ENDED

30/06/2009

RM’000

Cash Flow From Operating Activities
Profit Before Taxation
Adjustments For:
Non-Cash Items
Non-Operating Items / 747,360
25,300
(19,106) / / 309,205
114,328
(14,871)
Operating Profit Before Working Capital Changes
Changes In Working Capital:
Net Change In Current Assets
Net Change In Current Liabilities / 753,554
(115,624)
(55,774) / /

408,662

154,054
(233,839)
Net Cash Generated From Operating Activities /

582,156

/ /

328,877

Cash Flow From Investing Activities
Net Cash Outflow Arising From Equity Investments
Dividends Received
(Purchase)/Disposal Of Fixed Assets (Net)
Interest Income
Other Investments / (48,300)
24,142
(250,315)
18,131
(129,855) / / (98,538)
48,499
(263,308)
15,566
(138,298)
Net Cash Used In Investing Activities /

(386,197)

/ /

(436,079)

Cash Flow From Financing Activities
Proceeds From Issue Of Shares
Dividends Paid
Bank Borrowings (Net) / 87,124
(192,295)
183,752 / / 43,589
(229,241)
99,456
Net Cash Generated From/(Used In) Financing Activities /

78,581

/ /

(86,196)

Net Increase/(Decrease) In Cash And Cash Equivalents
Cash And Cash Equivalents As At 1st January
Effects Of Exchange Rate Changes / 274,540
1,699,020
(1,463) / (193,398)
1,519,699
5,565
Cash And Cash Equivalents As At 30th June /

1,972,097

/ /

1,331,866

(The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Audited Annual Financial Report for the year ended 31st December 2009)

Note 1 - Accounting Policies

The interim financial statements have been prepared in accordance with FRS 134: Interim Financial Reporting and Chapter 9, Paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. The Group has adopted all new and revised Financial Reporting Standards (“FRSs”), Issues Committee Interpretations (“IC Interpretations”) and Amendments applicable to the Group as at 1st January 2010:

The significant accounting policies and methods of computation in the interim financial statements are consistent with those in the annual audited financial statements for the year ended 31st December 2009 except for changes in presentation and disclosures, methods of computation and accounting policies resulting from the adoption of the following:

(a)  FRS 7, Financial Instruments: Disclosures;

(b)  FRS 8, Operating Segments;

(c)  FRS 101(revised), Presentation of Financial Statement;

(d)  FRS 139, Financial Instruments: Recognition and Measurement;

(e)  IC Interpretation 9, Reassessment of Embedded Derivatives;

(f)  IC Interpretation 10, Impairment and Interim Financial Reporting;

(g)  Amendment to FRS 117, Leases.

Changes resulting from the adoption of the above-stated new and revised FRSs, IC Interpretations and Amendments were disclosed in the Interim Financial Statements for the first quarter ended 31st March 2010.

The effects on the comparatives in the Condensed Consolidated Statement of Comprehensive Income for the current quarter and six months ended 30th June 2010 on adoption of FRS 101 are as follows:

Quarter Ended
30th June 2009
RM’000 / 6 Months Ended
30th June 2009
RM’000
Profit for the period as previously stated / 143,364 / 241,546
Other comprehensive income:
Translation of Foreign Operations
Net asset accretion arising from the share issue of a jointly-controlled entity / (2,646)
- / 5,565
2,468
Total comprehensive income / 140,718 / 249,579
Total comprehensive income attributable to:
Owners of the parent / 76,107 / 151,604
Non-controlling interest / 64,611 / 97,975
140,718 / 249,579

The following are effects arising from the adoption of FRS139 by the Group:

Increase / (Decrease)
Statements of financial position / As at
30th June 2010
RM’000 / As at
1st January 2010
RM’000
Investment in associates / (1,521) / 23,875
Trade receivables / - / 632
Other receivables / - / 2,240
Derivative assets / 33,745 / 6,672
Derivative liabilities / 8,076 / 19,169
Other payables - financial guarantee / - / 3,278
Retained earnings / 25,303 / 17,102
Cash flow hedge reserve / (566) / 201
Non-controlling interests / (1,723) / (6,130)

Other than the above, the rest of the new and revised FRSs, IC Interpretations and Amendments do not have material impact on the accounting policies, financial position or performance of the Group for the current period under review.

Note 2 - Seasonal or Cyclical Factors

The Group is principally engaged in:

(a)  import, assembly and marketing of passenger and commercial vehicles and related spares and manufacturing of original/replacement automotive parts;

(b)  trading and manufacturing of a wide range of light and heavy equipment including related spares for use in the industrial, construction, mining and agricultural sectors; and

(c)  manufacturing and trading of oil pipes and providing various oil and gas services including drilling and pipe-coating.

The Group’s products and services are generally dependent on the Malaysian and global economies, consumer demand and market sentiment.

Note 3 - Exceptional Items

There were no unusual items affecting assets, liabilities, equity, net income or cash flows except as disclosed in Note 1 above.

Note 4 - Accounting Estimates

There were no changes in estimates of amounts reported in the prior interim period of the current financial year or changes in estimates of amounts reported in prior financial years that have a material effect in the current interim period.

Note 5 - Issuance or Repayment of Debt and Equity Securities

There were no issuances and repayment of debt securities, share buy-backs, share cancellations, shares held as treasury shares and resale of treasury shares for the period ended 30th June 2010.

During the quarter ended 30th June 2010, the issued and paid-up capital of the Company increased from RM564,981,366 to RM568,644,966 as a result of the exercise and allotment of:

(a)  145,200 option shares of par value RM0.50 each at RM3.335 per share;

(b)  385,900 option shares of par value RM0.50 each at RM3.33 per share;

(c)  35,800 option shares of par value RM0.50 each at RM3.325 per share;

(d)  4,130,500 option shares of par value RM0.50 each at RM4.93 per share; and

(e)  2,629,800 option shares of par value RM0.50 each at RM5.16 per share.

As at 30th June 2010, the total number of unexercised share options was 30,614,700 option shares of par value RM0.50 each.

At the date of this report, 4,926,100 option shares were exercised and allotted subsequent to 30th June 2010. After taking into account these new shares, the paid-up capital of the Company increased to RM571,108,016.

Note 6 - Dividends Paid

A second interim single-tier dividend of 10% or 5.0 sen per share of RM0.50 each (2009 - 20% or 10.0 sen per share of RM0.50 sen each less 25% income tax) amounting to a net dividend of RM56.2 million (2009 - RM82.1 million) for the financial year ended 31st December 2009, was paid on 18th February 2010.

There was no dividend paid during the quarter ended 30th June 2010.

Note 7 - Segmental Reporting

Six Months Ended 30th June 2010
Business Segment / Revenue
RM’000 / Profit Before Taxation
RM’000 / Profit Attributable to Owners of the Company
RM’000
Automotive / 4,962,061 / 719,305 / 335,923
Equipment / 757,171 / 69,832 / 53,391
Oil & Gas / 293,449 / (38,550) / (32,672)
Manufacturing & Engineering / 309,457 / 29,155 / 15,123
Others / 38,129 / (32,382) / (27,212)
Sub-Total / 6,360,267 / 747,360 / 344,553
Elimination of Inter-Segment Sales / (45,035) / -
Consolidated Total / 6,315,232 / 747,360

Note 8 - Subsequent Material Events

In the opinion of the Directors, there was no material event or transaction during the period from 30th June 2010 to the date of this announcement, which affects substantially the results of the operations of the Group for the period ended 30th June 2010 in respect of which this announcement is made.

Note 9 - Changes in Composition/Group