Sime Darby Bhd. · MYX:SIME

Sime Darby Bhd — Investor Presentation (January 2019)

46 slides from Sime Darby Bhd's investor presentation, January 2019

  1. Slide 1: Sime Darby Berhad Investor Presentation January 2019

    SIME DARBY BERHAD Investor Presentation January 2019

  2. Slide 2: Disclaimer

    STRICTLY PRIVATE & CONFIDENTIAL Disclaimer This document is strictly confidential to the recipient. It is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any pu

  3. Slide 3: Table of Contents

    STRICTLY PRIVATE & CONFIDENTIAL Table of Contents Section Page 1. Sime Darby Berhad 3 2. Motors Division 15 3. Industrial Division 25 4. Logistics Division 35 5. Healthcare Division 39 6. Others 41 7. Appendices 43 2

  4. Slide 4: Company overview

    STRICTLY PRIVATE & CONFIDENTIAL Company overview 3

  5. Slide 5: Latest Developments (1/2)

    STRICTLY PRIVATE & CONFIDENTIAL Latest Developments (1/2) Good FY18 results, monetization plan on track, changing political landscape provides opportunities FY18 results • Sime Darby Berhad reported strong set of numbers for FY2018 • Revenue – RM33.8bn | PBIT – RM1,074m | Net Profit – RM618m | Core

  6. Slide 6: Latest Developments (2/2)

    STRICTLY PRIVATE & CONFIDENTIAL Latest Developments (2/2) Minimal direct impact due to localization Tariffs imposed in the US-China trade war in 2018 US tariff action $200bn China tariff action $60bn $34bn $34bn $16bn $16bn July August September • Imposition of additional tariffs will be held off fo

  7. Slide 7: Sime Darby Berhad

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Berhad Leading trading company in APAC with strong partnerships with premium brands Motors Industrial Logistics Healthcare One of the largest BMW dealers in the world One of the largest CAT dealers globally China South Korea Macau 6 hospitals in Malaysia &

  8. Slide 8: Business Overview

    STRICTLY PRIVATE & CONFIDENTIAL Business Overview Diversified trading and logistics company; valuable healthcare component Motors Industrial Healthcare Logistics  Retail, distribution and assembly  Comprehensive range of  50:50 JV with Ramsay  Ports and logistics in Shandong, businesses equipmen

  9. Slide 9: FY2018: Segmental Information

    STRICTLY PRIVATE & CONFIDENTIAL FY2018: Segmental Information Diversified exposure across segments and geographies, low gearing for expansion (FYE June 2018; RM mm) Total Revenue Capital Structure By Segment By Geography Debt/Equity: 19.6% 14,759 Logistics Others 1% 0% Malaysia 389 SEA (excl. Msia)

  10. Slide 10: FY2018 Financial Results

    STRICTLY PRIVATE & CONFIDENTIAL FY2018 Financial Results Reported Profit: 12 Months ended 30 June 2018 In RM Million FY2018 FY2017 YoY % Revenue 33,828 31,087 8.8 PBIT 1,074 784 37.0 Finance income(1) 104 512 Finance costs (113) (289) Profit before tax 1,065 1,007 5.8 Taxation (380) (212) Profit fro

  11. Slide 11: FY2018 Financial Results: Core Net Profit

    STRICTLY PRIVATE & CONFIDENTIAL FY2018 Financial Results Core Net Profit: 12 Months ended 30 June 2018 In RM Million FY2018 FY2017 YoY % Reported PBIT 1,074 784 37.0 Adjustments • Disposal of/compensation from properties (238) (30) • Bucyrus impairment - 257 • Motors Vietnam 199(1) 66 • Impairment o

  12. Slide 12: Value Creation Plan

    STRICTLY PRIVATE & CONFIDENTIAL Value Creation Plan Strategic Plans to Deliver Returns and Growth To be the leading Motors & Industrial multi-national in Asia Pacific REVENUE COST BUSINESS PORTFOLIO EXPAND SYNERGISTIC ENHANCEMENT OPTIMISATION EXPANSION RATIONALISATION HEALTHCARE M&A Enhanced Operati

  13. Slide 13: Business Characteristics

    STRICTLY PRIVATE & CONFIDENTIAL Business Characteristics High volume, low margin business with large footprint across Asia; strong partnerships High volume, low margin Long-standing partnership Cyclical business business with premium brands Business dependent on commodity Business is characterized b

  14. Slide 14: Executive Leadership

    STRICTLY PRIVATE & CONFIDENTIAL Executive Leadership Qualified & Experienced Management Team DATO’ JEFFRI SALIM MUSTAMIR MOHAMAD DATUK THOMAS LEONG ROSELAINI FAIZ DAVIDSON Group Chief Financial Officer Group Chief Strategy Officer Group Chief Human Group Chief Executive Officer Resources Officer SCO

  15. Slide 15: Motors Division

    STRICTLY PRIVATE & CONFIDENTIAL Motors Division 14

  16. Slide 16: History & Key Milestones

    STRICTLY PRIVATE & CONFIDENTIAL History & Key Milestones Solid Track Record Across 9 Markets in the Asia Pacific Region BMW (HK & Macau) New Zealand Malaysia & China Jaguar & Land Rover (Malaysia), Ferrari 1972 1998 2010 2014 Acquired the sole importer Acquired 80% of  Appointed distributor & and d

  17. Slide 17: Motors: Strong luxury and mass market brands across APAC

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors We represent strong luxury and mass market brands across APAC Malaysia Singapore Thailand Australia New Zealand Hong Kong Macau China China Taiwan Distributor Distributor Dealer Dealer Distributor Distributor Distributor Dealer Distributor & Dealer &

  18. Slide 18: Motors: Focused on Expansion in Asia Pacific

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Focused on Expansion in Asia Pacific HK & Macau Current Presence Distributor & Dealer Dealer Countries & Achievements Assembly Rental  One of the largest BMW dealer globally  One of Top Rolls Royce dealers China Taiwan in Asia Pacific  A leading D

  19. Slide 19: Motors: Strategy and business objectives

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Focus on new model launches, expand assembly, M&A for new territories and marques V IV “Future III Proofing” Strategy Business II Expansion Objectives Expand I Assembly Turnaround Poor Performers Operational Excellence  Leverage on new  Focused pla

  20. Slide 20: Motors: Key Financial Highlights

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Key Financial Highlights Revenue (RM mm) PBIT (RM m) Record sales of the trucking business across all brands in Impacted by GST in Stronger contributions NZ, higher sales volume in China and increased COE quota Malaysia and government from Malaysia a

  21. Slide 21: Units Sold, Revenue & PBIT by Region (1/2)

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Units Sold, Revenue & PBIT by Region (1/2) FY18 Sales Contribution Reported Revenue & Core PBIT Marques Units Sold & Units Sold (RM ‘m) Malaysia 7.3% 4.7% 2.6% 6.2% 5.9% 333 Malaysia, 31,230 204 223 210 18% 26,607 87 Malaysia 18,571 17,663 4,563 4,32

  22. Slide 22: Units Sold, Revenue & PBIT by Region (2/2)

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Units Sold, Revenue & PBIT by Region (2/2) FY18 Sales Contribution Reported Revenue & Core PBIT Marques Units Sold & Units Sold (RM ‘m) China / HK / 3.5% 1.6% 1.7% 2.7% 2.7% Macau / Taiwan 250 231 236 124 134 35,601 11,000 33,915 34,293 100 31,596 31

  23. Slide 23: Motors: Improved performance in China region

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Improved performance in China region -1.3% China, HK, Macau, Taiwan 21,000 -14% 20,601 20,341 • Higher volume from luxury cars in Hong Kong 20,500 700 633 • Financial performance in Taiwan improved due to 600 543 20,000 500 new models being launched

  24. Slide 24: Upcoming Model launches expected to boost sales

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Upcoming Model launches expected to boost sales in 2QFY2019 BMW 7 Series Ford Ranger October 2018 October 2018 Hyundai Tuscon BMW X5 October 2018 November 2018 23

  25. Slide 25: Industrial Division

    STRICTLY PRIVATE & CONFIDENTIAL Industrial Division 24

  26. Slide 26: History & Key Milestones

    STRICTLY PRIVATE & CONFIDENTIAL History & Key Milestones Long-standing Partnership with Caterpillar Since 1929 Sime Darby & Co China Engineers Ltd (Kumpulan Sime Darby became a subsidiary of the group 1910 1972 Bhd) established in Malacca, Malaysia Tractors dealerships Hastings Deering USD8.8 bn acq

  27. Slide 27: Industrial: Strong brands and comprehensive market reach across APAC

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Strong brands and comprehensive market reach across APAC Energy Solutions CAT Dealer Operations Allied Brands Group Group Malaysia Malaysia, Brunei (via JV with Hong Kong & Kubota Corp & Macau, China Marubeni Corp) Singapore, Maldives, Christmas

  28. Slide 28: Industrial: Regional Presence Across Countries and Territories

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Regional Presence Across 17 Countries and Territories, Supported by a Network of Branches  Principal activities Xinjiang – Sale, rental and used equipment of Caterpillar South Korea  Hunan equipment and engine  Jiangxi  Fujian – Sale of parts

  29. Slide 29: Industrial: Key Industry Highlights

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Key Industry Highlights Queensland Hard Coking Coal FOB (USD/tonne)  Metallurgical coal prices have 400 stabilised around 350 300 USD200/tonne vs. average FOB 250 cost for Queensland producers of 200 USD100/tonne. 150 100  The return to profita

  30. Slide 30: Industrial: Leverage on commodity upswing, digital as key enabler

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Leverage on commodity upswing, digital as key enabler, enhance recurring income profile IV III Restructuring of Non-Core II Businesses Organic Objectives Business I Expansion Cost Optimization Revenue Enhancement  Enhanced sales from  Operation

  31. Slide 31: Industrial: Key Financial Highlights

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Key Financial Highlights Revenue (RM m) PBIT (RM m) 14,429 13,575 1,396 13,041 1,331 12,073 10,962 1,106 10,637 1,039 9,946 10,127 8,645 898 8,210 793 7,629 725 552 434 341 253 (3) (4) FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY201

  32. Slide 32: Revenue & PBIT by Region (1/2)

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Revenue & PBIT by Region (1/2) FY18 Sales Contribution & Products / Services Revenue (RM ‘m) Core PBIT (RM ‘m) YoY Orderbook FY18 Sales Contribution CAT New Equipment & Engines 10.5% 8.5% 5.2% 4.4% 3.9% Malaysia 9% 150 1,423 Excavators Dozers 1,2

  33. Slide 33: Revenue & PBIT by Region (2/2)

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Revenue & PBIT by Region (2/2) FY18 Sales Contribution & Products / Services Revenue (RM ‘m) Core PBIT (RM ‘m) YoY Orderbook FY18 Sales Contribution CAT New Equipment & Engines 5.4% 4.7% 3.9% 3.5% 4.1% China / HK / Macau 3,944 161 30% 142 Excavat

  34. Slide 34: Industrial: Strong demand from Australia mining and China infrastructure

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Strong demand from Australia mining and China infrastructure spending +29% Australasia 13,041 10,127 612 • Improved contribution from equipment deliveries to both mining and construction 590 sectors 490 • Product support business segment (mainly

  35. Slide 35: Logistics Division

    STRICTLY PRIVATE & CONFIDENTIAL Logistics Division 34

  36. Slide 36: Business Overview

    STRICTLY PRIVATE & CONFIDENTIAL Business Overview Well-connected major multipurpose port in the Yellow Delta River  Sime Darby Logistics is the primary operator of Weifang Port, of which operations cover dry bulk, break bulk, liquid bulk, general cargo and container handling services.  The Divisio

  37. Slide 37: Key Financial and Operational Highlights

    STRICTLY PRIVATE & CONFIDENTIAL Key Financial and Operational Highlights Revenue (RM ‘m) PBIT (RM ‘m) Lower Jining Port tariffs as 341 a result of intense 303 103 competition & tighter 294 294 66 environmental controls by 250 Jining authority 44 53 60 77 28 74 70 37 12 64 6 30 23 275 250 241 243 75

  38. Slide 38: Logistics: Higher port throughput; Gain on Weifang Water disposal

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Logistics Higher port throughput; Gain on Weifang Water disposal Ports +13% 380 341 +16% • Higher general cargo and container throughput 330 303 • FY17 includes RM10m gain on disposal of 50% 74 280 64 equity interest in Weifang Sime Darby West Port 230 Wate

  39. Slide 39: Healthcare Division

    STRICTLY PRIVATE & CONFIDENTIAL Healthcare Division 38

  40. Slide 40: Ramsay Sime Darby Health Care

    STRICTLY PRIVATE & CONFIDENTIAL Ramsay Sime Darby Health Care Premium hospitals in Malaysia and Indonesia with good earnings growth Assets in Malaysia +58% 50% 57 Higher profit Subang Jaya Ara Damansara ParkCity from Malaysian Medical Centre Medical Centre Medical Centre 36 operations and additional

  41. Slide 41: Others

    STRICTLY PRIVATE & CONFIDENTIAL Others 40

  42. Slide 42: Malaysia Vision Valley Land

    STRICTLY PRIVATE & CONFIDENTIAL Malaysia Vision Valley Land ~8,800 acres of land – Option to sell to SD Property Highlights of MVV Option to sell ~8,800 acres MVV is a large scale project announced by the Malaysian Prime Minister during his 2016 Budget speech, and is a component of the Government's

  43. Slide 43: Appendices

    STRICTLY PRIVATE & CONFIDENTIAL Appendices 42

  44. Slide 44: Group Corporate Structure

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Berhad Group Corporate Structure (RM million) 30-Jun-18 Motors Industrial Logistics Others Group External Debt 1,048 1,483 316 42 2,889 Cash 605 480 227 360 1,672 Revenue 20,341 13,041 341 105 33,828 PBIT 543 612 74 (155) 1,074 Motors Industrial Healthcare

  45. Slide 45: FY2018 Balance Sheet

    STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Berhad FY2018 Balance Sheet Healthcare (FYE June 2018; RM million) Motors Industrial Logistics Total & Others Fixed Assets 3,291 2,735 1,715 23 7,764 Assocs, JVs & Investments 336 100 424 979 1,839 Inventories 3,762 3,447 1 - 7,210 Receivables 2,627 2,319 3

  46. Slide 46: Thank You

    STRICTLY PRIVATE & CONFIDENTIAL Thank You 45

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