Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — JPM Malaysia Best Ideas Forum 2017
32 slides from Sime Darby Bhd's conference presentation, Apr 25, 2017
Slide 1: Sime Darby Berhad Investor Presentation
Sime Darby Berhad Investor Presentation JPM Malaysia Best Ideas Forum 25 April 2017
Slide 2: Agenda
Agenda Table of Contents A Sime Darby’s Financial Highlights B Key Divisional Highlights 2
Slide 3: Half Year ended 31 Dec 2016
A Half Year ended 31 Dec 2016 YoY Comparison (Vs. 1HFY2016) RM millions YOY% 1HFY2017 1HFY2016 REVENUE 2% 22,438 22,002 PBIT 38% 1,600 1,159 PBT 66% 1,550 936 PATAMI 79% 1,087 609 BASIC EPS (sen) 71% 16.8 9.8 3
Slide 4: 1HFY17 & 2QFY17 Divisional PBIT
A 1HFY17 & 2QFY17 Divisional PBIT QoQ Comparison (Vs. 1QFY17) 1HFY20171 2QFY20171 Commentary 1HFY17 2QFY17 FFB 4.87mn MT 2.72mn MT RM841mn RM568mn production (-10% YoY) (+5% YoY) (+82% YoY) (+257% YoY) PLANTATION 1HFY16: 2QFY16: Average CPO RM2,739/MT RM2,835/MT RM461mn RM159mn price realised (+32%
Slide 5: 1HFY17 & 2QFY17 Divisional PBIT
A 1HFY17 & 2QFY17 Divisional PBIT QoQ Comparison (Vs. 1QFY17) 1HFY20171 2QFY20171 Commentary RM309mn RM137mn • Recognised its maiden share of profit from the Battersea (+65% YoY) (+61% YoY) Power Station Project of RM95mn PROPERTY 1HFY16: 2QFY16: • Recorded a gain on compulsory acquisition of land f
Slide 6: Overview of Borrowings Position
A Overview of Borrowings Position Breakdown of long-term borrowings Breakdown of total borrowings by currencies & short-term borrowings (in RM’mn) RMB Rupiah EURO RM16.3bn RM15.2bn 1% 2% 3% Others Total borrowings Total borrowings 4% 4,567 7% 3,168 RM RM15.2bn 25% As at 31 Dec’16 11,679 11,999 USD 6
Slide 7: Credit Ratings
A Credit Ratings Sime Darby Berhad Baa1 Negative As at 3rd Mar ‘16 *Currently under Rating Watch Negative BBB+ Stable As at 11 Oct’16 *Currently under Rating Watch Negative AAIS Negative PERPETUAL SUKUK As at 8 Feb’17 MARC-1DD /AAAID/ ICP/IMTN As at 8 Feb’17 Negative Sime Darby Plantation Baa1 Stabl
Slide 8: Key Divisional Highlights - Plantation
B Key Divisional Highlights - Plantation FFB Production (YoY) Average CPO Price Realised (YoY) 2QFY17 2QFY17 Mn MT RM/MT 5% 2.72 30% 50% 28% 37% 2.60 2,961 2,851 2,835 2,763 2,306 2,196 2,066 0.3% 1,837 1.34 1.34 4% 0.900.94 21% 0.44 0.36 Malaysia Indonesia NBPOL Group Malaysia Indonesia NBPOL Group
Slide 9: Key Divisional Highlights - Industrial
B Key Divisional Highlights - Industrial MALAYSIA RM1.4bn Order book as at • The construction industry is driven by the government’s mega 31 Dec’16 infrastructure projects and an improvement in the domestic economy AUSTRALIA 30:70 Breakdown of • The mining industry has seen an increase in activity r
Slide 10: Key Divisional Highlights - Motors
B Key Divisional Highlights - Motors 42,612 (+1% YoY) Total Units Sold 1HFY17 Zhonghe (New Taipei City) 1S BMW Shenzhen Bao’an facility in Taiwan Showroom in China New showrooms and models launched in 2QFY17 22,399 (-2% YoY) Total Units Sold 2QFY17 KIA Morning Facelift in Taiwan Hyundai Ioniq in Mal
Slide 11: Key Divisional Highlights - Property
B Key Divisional Highlights - Property RM831 million UPCOMING LAUNCHES IN 2HFY2017 Gross Sales Value as at 31 Dec’16 vs RM300mn as at 31 Dec’15 RM1.5 billion Unbilled sales as at 31 Dec’16 vs RM1.2bn as at 31 Dec’15 Phase BA4A, Bandar Ainsdale Phase G3B, Elmina East • 45 units of DSLH • 67 units of
Slide 12: Appendices
APPENDICES 1. Group 2. Plantation 3. Industrial 4. Motors 5. Property 6. Logistics 12
Slide 13: Broad Mix of Strong and Reputable Shareholders
Broad Mix of Strong and Reputable Shareholders Employees Provident Fund – Malaysia’s largest pension fund RM9.28 EPF Share Price 9.4% As at 18th Apr 2017 Others 38.9% Shareholding RM63.11 billion Structure Market Capitalisation As at 31st Mar 2017 PNB As at 18th Apr 2017 51.7% 14.82% Foreign Shareho
Slide 14: FY2017 Headline KPI Targets
FY2017 Headline KPI Targets Key Parameters RM2.2bn Average CPO price of RM2,650/MT NET EARNINGS TARGET Subdued demand for engines from the oil & gas, marine and shipyard sectors 6.4% Weaker Ringgit Malaysia RETURN ON AVERAGE resulting in higher cost of SHAREHOLDERS’ EQUITY imported inputs TARG
Slide 15: Second Quarter ended 31 Dec 2016 YoY
Second Quarter ended 31 Dec 2016 YoY Comparison (Vs. 2QFY2016) RM millions YOY% 2QFY2017 2QFY2016 REVENUE 4% 12,339 11,829 PBIT 68% 927 552 PBT 94% 921 475 PATAMI 126% 644 285 BASIC EPS (sen) 111% 9.7 4.6 15
Slide 16: Second Quarter ended 31 Dec 2016 QoQ
Second Quarter ended 31 Dec 2016 QoQ Comparison (Vs. 1QFY2017) RM millions QoQ% 2QFY2017 1QFY2017 REVENUE 22% 12,339 10,099 PBIT 38% 927 673 PBT 46% 921 629 PATAMI 45% 644 443 BASIC EPS (sen) 39% 9.7 7.0 16
Slide 17: Breakdown of External Revenue
Breakdown of External Revenue In RM’mn 1HFY17 1HFY16 % 2QFY17 2QFY16 % Plantation Upstream & Others 2,757 2,587 7% 1,640 1,355 21% Midstream & Downstream 3,944 3,455 14% 2,270 2,027 12% 6,701 6,042 11% 3,910 3,382 16% Industrial Malaysia 644 473 36% 322 219 47% SE Asia ex Malaysia 253 605 -58% 124 3
Slide 18: Breakdown of PBIT
Breakdown of PBIT In RM’mn 1HFY17 1HFY16 YoY 2QFY17 2QFY16 YoY Plantation Upstream & Others 720 358 101% 485 88 451% Midstream & Downstream 121 103 18% 83 71 17% 841 461 82% 568 159 257% Industrial Malaysia 39 30 30% 24 15 60% SE Asia ex Malaysia 1 65 -99% 3 34 -91% China/HK 36 42 -14% 19 20 -5% Aus
Slide 19: Plantation - Operational Statistics
Plantation - Operational Statistics MALAYSIA INDONESIA PNG LIBERIA TOTAL 1HFY17 1HFY16 1HFY17 1HFY16 1HFY17 1HFY17 1HFY17 1HFY16 FFB Production (mn MT) 2.60 2.99 1.51 1.69 0.76 6,3691 4.87 5.43 FFB yield per mature ha (MT/ha) 10.14 11.40 8.91 9.32 10.07 1.57 9.65 10.50 CPO Production (mn MT) 0.58 0.
Slide 20: Plantation – Upstream Geographical Coverage
Plantation – Upstream Geographical Coverage Sabah Sarawak Planted : 46,653 ha Planted : 38,907 ha Landbank : 53,780 ha Landbank : 47,296 ha Sulawesi Planted : 3,965 ha Kalimantan Landbank : 4,712 ha Planted : 129,888 ha Landbank : 180,018 ha Sumatera Planted : 70,128 ha Landbank : 98,861 ha Papua Ne
Slide 21: Plantation – Oil Palm Age Profile
Plantation – Oil Palm Age Profile (As at 30 Sep 2016) MALAYSIA INDONESIA LIBERIA NBPOL 7% 5% 5% 11% 16% 16% 12% 18% 29% 39% 13.2 yrs 14.4 yrs 10% 3.6 yrs 11.0 yrs 23% Average Palm 18% Average Palm Average Palm 16% Average Palm Tree Age Tree Age Tree Age Tree Age 10% 61% 22% 19% 29% 32% 13.1 yrs Grou
Slide 22: Plantation – Key Sustainability Achievements
Plantation – Key Sustainability Achievements RSPO Certification Status Constituent of Environmental, Social & Corporate Status (as at 31 Malaysia Indonesia NBPOL Liberia Total Governance (ESG) Indices Dec’16) Certified 34/34 23 /24 12/12 0/1 69/71 Since 2015 : % of 100% 96% 100% - 97% completion Dow
Slide 23: Plantation – Pioneering Good Agriculture Practices
Plantation – Pioneering Good Agriculture Practices Open Palm Traceability Open Palm online dashboard provides SDP customers with access to key data on the origin of all palm products that go through SDP refineries from its various oil palm mills, plantations and third party plantations Percentage of
Slide 24: Industrial – Investments in China
Industrial – Investments in China • Primary Markets : Construction & power systems • Presence in Hong Kong, Macau and 7 provinces in the Southeastern part of China, plus Xinjiang Xinjiang Jiangxi Hunan Fujian Dealership Territories Guangxi Guangdong Branch / CAT Rental Store (CRS) Hong Kong Provinci
Slide 25: Motors – Marques by Region
Motors – Marques by Region MALAYSIA SINGAPORE THAILAND CHINA HONG KONG MACAU AUSTRALIA NEW ZEALAND VIETNAM Distributor Distributor Distributor Distributor Distributor Distributor Dealer Dealer Distributor & Dealer & Dealer & Dealer & Dealer & Dealer & Dealer Dealer Rental Assembly (INOKOM) Dealer TA
Slide 26: Motors – Strategic Expansion
Motors – Strategic Expansion Expansion in KEY MARKETS in the last THREE years 1. Vietnam 2. Taiwan (Kia) 2. China (Nanjing & (BMW & MINI) Beitou Chongqing) 3S 3S Chengdu 3S Neihu Changsha 3S Nanjing Hanoi Chongqing 3STaichung Shanghai 3SZhang Hua 1S Yunnan Hangzhou 3S Shantou 3S Guangzhou Ho Chi 1S3
Slide 27: Property – Existing and Future Townships
Property – Existing and Future Townships To-date, the Division built 23 township developments Greater Kuala Lumpur and has over 28,000 acres of land bank in four main Guthrie Corridor corridors spanning from Johor to Penang, which includes (City of Elmina) 10,800 acres earmarked for future developme
Slide 28: Property – Battersea Power Station
Property – Battersea Power Station Project Development Battersea Power Station (BPS) : The sustainable mixed development Established in Jul’12 comprising residential and commercial units at Battersea Power Station was well received since its inaugural launch in Sep’14 JOINT 40:40:20 VENTURE SD Prope
Slide 29: Logistics - Overview
Logistics - Overview Weifang Water Shandong Province, China Weifang Port Annual Throughput & Capacity Annual Throughput & Capacity FY2016 FY2020 Dongying FY2016 FY2020 Current Throughput Target Throughput Current Throughput Target Throughput Binzhou Yantai 36 million m3 44 million m3 21 million MT 5
Slide 30: Logistics – Expansion Plan
Logistics – Expansion Plan Expected the full completion of Weifang Port’s As at 30 June 2016 5-Year Expansion Plan by FY2020 Weifang Port • Total capacity of 32 million MT per annum • Has 23 berths with a total berth length of 4,085 metres • Cargoes such as raw salt, soda, grain, Multipurpose Contai
Slide 31: Disclaimer
Disclaimer This presentation may contain forward-looking statements by Sime Darby Berhad that reflect management’s current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptio
Slide 32: Thank You
Thank You SIME DARBY INVESTOR RELATIONS investor.relations@simedarby.com +(603) 2691 4122 http://www.simedarby.com/Overview.aspx 32
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