Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — FY2016 Earnings Presentation
27 slides from Sime Darby Bhd's earnings presentation, Aug 23, 2016
Slide 1: FY2015/2016 Results Announcement
FY2015/2016 Results Announcement Financial Year ended 30 June 2016 23 August 2016
Slide 2: Fourth Quarter ended 30 June 2016
Fourth Quarter ended 30 June 2016 YoY % 4QFY2016 4QFY2015 In RM’mn REVENUE 9% 11,728.0 12,864.5 YoY 9% 1,100.8 1,206.6 PBIT YoY 5% 1,088.8 1,151.5 PBT YoY 13% 1,137.1 1,003.0 PATAMI YoY In sen BASIC EPS 11% 17.97 16.14 YoY 2
Slide 3: Year ended 30 June 2016
Year ended 30 June 2016 YoY % FY2016 FY2015 In RM’mn REVENUE 1% 43,962.8 43,728.7 YoY 9% 3,115.5 3,419.7 PBIT YoY 11% 2,815.8 3,145.4 PBT YoY 1% 2,408.8 2,430.0 PATAMI YoY In sen BASIC EPS 3% 38.43 39.57 YoY 3
Slide 4: 4QFY2016 and FY2016 Divisional PBIT
4QFY2016 and FY2016 Divisional PBIT Group Segment Results* Group Segment Results* RM1,167.0mn, -5% YoY RM3,074.8mn, -6% YoY 4QFY2015: RM1,224.0mn FY2015: RM3,265.0mn 4 Plantation RM499.3mn,+2% YoY Plantation RM1,052.4mn, -19% YoY 4QFY2015: RM489.4mn FY2015: RM1,290.8mn Q F F Industrial RM129.0mn, +3
Slide 5: 4QFY2016 Divisional PBIT (versus 3QFY2016)
4QFY2016 Divisional PBIT (versus 3QFY2016) PLANTATION Higher CPO ASP : INDUSTRIAL • Savings from cost cutting • 1QFY16 – RM2,088/MT measures for the last 2 GROUP RM’mn RM’mn • 2QFY16 – RM2,066/MT years +>100% +73% SEGMENT • 3QFY16 – RM2,200/MT • Australasia - higher • 4QFY16 - RM2,636/MT equipment d
Slide 6: FY2016 Results vs FY2016 Headline KPI Targets
FY2016 Results vs FY2016 Headline KPI Targets The Group exceeded the KPI targets despite a challenging operating environment in all Net Profit the businesses: RM2,408.8mn Average CPO price realised of RM2,242/MT was in line with the Group’s forecast of RM2,250/MT (-0.4%) vs KPI Target of FFB product
Slide 7: Financial Position as at 30 June 2016
Financial Position as at 30 June 2016 Improved financial credit profile due to deleveraging measures Strong Liquidity Disciplined Spending Total Borrowings (FY16) Net cash from operations FY2016 CAPEX Spent Total Borrowings RM3,704.7mn RM2.61bn RM15,831.2mn +10% YoY -12% YoY Bank balances & cash FY2
Slide 8: Plantation Division
Plantation Division Higher average CPO price realised offset by lower FFB production 4QFY2016 FY2016 External RM3,097.5mn, -9% YoY RM11,876.5mn, +16% YoY Revenue PBIT RM499.3mn, +2% YoY RM1,052.4mn, -19% YoY Upstream RM422.1mn, -4% YoY RM810.8mn, -30% YoY & Others • Total FFB production of 2.11mn MT
Slide 9: Plantation Division: Industry-wide decline in FFB production
Plantation Division Industry-wide decline in FFB production Jul’15 to Dec’15 (YoY) Jan’16 to Jun’16 (YoY) July’15 to Jun’16 (YoY) • Industry-wide decline due to the lagged effect from the Super El Nino phenomenon in Malaysia and Indonesia • The division’s FFB production is expected to improve gradua
Slide 10: Plantation Division: NBPOL Deep Dive
Plantation Division: NBPOL Deep Dive Potential improvements in oil yields due to young age profile and superior seeds A quality brownfield asset Top 10 Best Yielding Estates (MT/ha) FY2016’s operating profit of RM192.6mn* Young average age profile of 11 years old High FFB production of 1.616 million
Slide 11: Industrial Division
Industrial Division Signs of earnings recovery 4QFY2016 FY2016 External RM2,648.1mn, -13% YoY RM9,617.5mn, -9% YoY Revenue PBIT RM129.0mn, +3% YoY RM326.3mn, -37% YoY Malaysia RM24.7mn, +34% YoY RM52.7mn, -40% YoY • Mitigated by a gain on disposal of a • Lower equipment deliveries and product proper
Slide 12: Industrial Division: Sequential quarter PBIT improvement
Industrial Division Sequential quarter PBIT improvement in all regions Brighter outlook boosted by growth in Australasia & Malaysia Quarterly PBIT (RM’mn) AUSTRALASIA Stabilising coal prices • Expecting rising product support services from key customers due to improvement of commodity prices & incre
Slide 13: Motors Division
Motors Division Higher FY2016 PBIT from China, Singapore, Thailand and Vietnam 4QFY2016 FY2016 External RM4,841.4mn, 0% YoY RM18,924.4mn, +1% YoY Revenue PBIT RM197.1mn, +38% YoY RM502.5mn, +6% YoY Malaysia RM59.6mn, -17% YoY RM87.4mn, -57% YoY • Poor sales performance from the mass vehicle segment
Slide 14: Motors Division: FY2016 highlights and key priorities
Motors Division FY2016 highlights and key priorities in FY2017 Total Units Sold Upcoming Launches in FY2017 Porsche Cayenne 91,278 Total sales volume Platinum Edition Jul’16, Australia 83,060 declined by -9% MINI One F55 YoY mainly Aug’16, Vietnam attributable to a drop in mass brand BMW 330e car sa
Slide 15: Property Division
Property Division Higher earnings due to gains from the asset monetisation exercise 4QFY2016 FY2016 External RM970.3mn, -29% YoY RM2,864.9mn, -17% YoY Revenue PBIT RM293.6mn, -29% YoY RM1,064.7mn, +20% YoY Property RM223.7mn, -46% YoY RM597.9mn, -28% YoY Development • Reduced PBIT due to lower • Rec
Slide 16: Property Division: FY2016 highlights and key priorities
Property Division FY2016 highlights and key priorities in FY2017 Key Highlights Key Execution Areas in FY2016 & FY2017 1. Emphasize on core products 1,895 units • City of Elmina: Average take-up rate of above 90% Total Units Sold • Bandar Universiti Pagoh: Successful launches for residential and FY2
Slide 17: Energy & Utilities Division
Energy & Utilities Division Affected by economic slowdown in the region 4QFY2016 FY2016 External RM159.3mn, -11% YoY RM629.2mn, -14% YoY Revenue PBIT RM37.4mn, +0.3% YoY RM105.7mn, -16% YoY Utilities RM28.6mn, >+100% YoY RM97.6mn, +27% YoY China • Higher profit from the water and • General cargo thr
Slide 18: Energy & Utilities Division (China)
Energy & Utilities Division (China) A year of expansion and capacity building Breakdown of Total Ports’ Throughput Recap of FY2016 FY2015 FY2016 -7% 215,745 1. Disposal of 50% stake in Weifang Liquid 32,455 +12% Terminal to Hong Kong’s Dragon Crown Group 30,345 Holdings To accelerate the growth of t
Slide 19: Other Businesses
Other Businesses Weaker earnings from Insurance Broking 4QFY2016 FY2016 External RM18.6mn, -9% YoY RM50.3mn, +1% YoY Revenue PBIT RM10.6mn, -17% YoY RM23.2mn, >+100% YoY Tesco M’sia Sdn • Lower share of losses of RM-19.6mn in FY16 as compared to a Bhd share of losses of RM-73.7mn in FY2015 Insurance
Slide 20: Proposed Private Placement of 5% of Sime Darby Berhad's Shares
Proposed Private Placement of 5% of Sime Darby Berhad’s Shares 20
Slide 21: Overview of the Proposed Placement
Overview of the Proposed Placement Offer Type Placement of primary shares in Sime Darby Berhad CMSA Schedule 6 & 7 (Malaysia) Distribution Restriction Regulation S (Outside Malaysia) Up to 316,353,626 shares to be issued pursuant to the Proposed Placement Placement Size (“Placement Share(s)”
Slide 22: Details of the Proposed Placement
Details of the Proposed Placement Rationale of the Utilisation of Proceeds (1) Proposed Placement: 1 Improve the Group’s liquidity Repayment of borrowings 50.5% Repayment of a substantial portion of bank borrowings which will result in interest savings Improve the Group’s gearing level thereby c
Slide 23: Pro Forma Effects of the Proposed Placement
Pro Forma Effects of the Proposed Placement 1 Effects on Share Capital To be issued under the As at 15 August 2016 (1) Enlarged share capital Proposed Placement 6,327,072,538 shares 316,353,626 shares 6,643,426,164 shares 2 Effects on Net assets (“NA”) per Share and Gearing Share Capital NA NA per s
Slide 24: 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 25: Thank You
Thank You SIME DARBY INVESTOR RELATIONS investor.relations@simedarby.com +(603) 2691 4122 http://www.simedarby.com/Overview.aspx 25
Slide 26: Appendix: Breakdown of External Revenue
Appendix: Breakdown of External Revenue In RM’mn 4QFY2016 4QFY2015 % FY2016 FY2015 % Plantation Upstream & others 1,354.6 1,578.7 -14% 5,147.1 4,613.1 12% Midstream & downstream 1,742.9 1,840.4 -5% 6,729.4 5,655.5 19% 3,097.5 3,419.1 -9% 11,876.5 10,268.6 16% Industrial Malaysia 232.9 209.8 11% 824.
Slide 27: Appendix: Plantation Operational Statistics
Appendix: Plantation Operational Statistics MALAYSIA INDONESIA PNG TOTAL FY16 FY15 FY16 FY15 FY16 FY16 FY15 FFB Production (mn MT) 5.26 5.94 2.75 3.05 1.62 9.62 9.64 FFB yield per mature ha (MT/ha) 20.26 22.28 15.50 16.82 21.85 18.82 20.39 CPO Production (mn MT) 1.18 1.32 0.77 0.85 0.49 2.44 2.36 PK