Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — Invest Malaysia 2017
52 slides from Sime Darby Bhd's conference presentation, Jul 25, 2017
Slide 1: Sime Darby Berhad Investor Presentation
Sime Darby Berhad Investor Presentation Invest Malaysia 2017 Kuala Lumpur 25 & 26 July 2017
Slide 2: Agenda
Agenda Table of Contents A Sime Darby’s Financial Highlights B Key Divisional Highlights C Sime Darby’s Pure Play Strategy 2
Slide 3: 5-Year Financial Summary
A 5-Year Financial Summary Revenue, PBIT and PATAMI In RM billion 46.6 46.1 REVENUE 43.9 43.7 44.0 5.8 4.8 4.4 PBIT 3.4 3.1 4.3 3.8 3.5 PATAMI 2.4 2.4 FY2012 FY2013 FY2014 FY2015 FY2016 3
Slide 4: Nine Months ended March 2017
A Nine Months ended 31 March 2017 YoY Comparison (vs. 9MFY2016) In RM million YOY% 9MFY2017 9MFY2016 REVENUE 8% 34,884 32,235 PBIT 30% 2,622 2,015 PBT 48% 2,557 1,727 PATAMI 40% 1,786 1,272 BASIC EPS (sen) 33% 27.1 20.4 4
Slide 5: 9MFY2017 Divisional PBIT
B 9MFY2017 Divisional PBIT YoY Comparison (vs. 9MFY2016) 9MFY20171 Commentary PLANTATION RM1,573mn 3QFY17 9MFY17 +184% YoY FFB 2.46mn MT 7.33mn MT Production (+18% YoY) (-2% YoY) 9MFY16: RM553mn Average CPO RM3,088/MT RM2,861/MT Price Realised (+40% YoY) (+35% YoY) Midstream & RM39mn RM160mn Downstr
Slide 6: 9MFY2017 Divisional PBIT
B 9MFY2017 Divisional PBIT YoY Comparison (vs. 9MFY2016) 9MFY20171 Commentary MOTORS RM392mn • Higher contributions from Malaysia, China/HK, Australia/NZ +29% YoY despite weaker profit from SE Asia ex. Malaysia 9MFY16: RM305mn INDUSTRIAL RM188mn • Higher contributions from Australasia, China and Mal
Slide 7: Key Divisional Highlights - Plantation
B Key Divisional Highlights - Plantation FY2016 9MFY2017 External RM11,877mn, +16% YoY RM10,771mn (+23% YoY) Revenue FY2015: RM10,269mn 9MFY16: RM8,779mn PBIT RM1,052mn, -19% YoY RM1,573mn (+184% YoY) FY2015: RM1,291mn 9MFY16: RM553mn Upstream RM811mn, -30% YoY RM1,413mn, +263% YoY & Others (FY2015:
Slide 8: Key Divisional Highlights - Plantation
B Key Divisional Highlights - Plantation FFB Production (mn MT) • More young areas have come into maturity Average mature ha: -2% YoY (FY2017 cumulative mature area from 514k 504k replanting: ~68,000 ha*) FY16 FY17 • Boost our production and age profile in -2% coming quarters 7.52 7.33 • NBPOL’s 9MF
Slide 9: Key Divisional Highlights - Plantation
B Key Divisional Highlights - Plantation 5-Year Historical FFB Production 5-Year Historical Average CPO Price (mn MT) Realised (RM/MT) 10.13 9.76 9.64 9.62 9.42 2,925 2,451 2,317 2,242 2,193 FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016 9
Slide 10: Key Divisional Highlights - Property
B Key Divisional Highlights - Property FY2016 9MFY2017 External RM2,865mn, -17% YoY RM1,443mn (-24% YoY) Revenue FY2015: RM3,455mn 9MFY16: RM1,894mn PBIT RM1,065mn, +20% YoY RM376mn (-51% YoY) FY2015: RM889mn 9MFY16: RM771mn Property RM598mn, -28% YoY RM282mn, -25% YoY Development (FY2015: RM831mn)
Slide 11: Key Divisional Highlights - Property
B Key Divisional Highlights - Property Key Operational Highlights Upcoming Launches in 4QFY2017 Unbilled Sales (RM’mn) Casira 1 and 2, 1,781 1,465 Bandar Bukit Raja 1,217 +22% +20% 193 units of linked houses As at 30 Sep'16 31 Dec'16 31 Mar'17 Est. GDV of RM141mn Gross Sales Value (RM’mn) 435.9 449.
Slide 12: Key Divisional Highlights - Motors
B Key Divisional Highlights - Motors FY2016 9MFY2017 External RM18,924mn, +1% YoY RM15,162mn (+8% YoY) Revenue FY2015: RM18,646mn 9MFY16: RM14,083mn PBIT RM503mn, +6% YoY RM392mn (+29% YoY) FY2015: RM474mn 9MFY16: RM305mn Malaysia RM87mn, -57% YoY RM70mn, +150% YoY (FY2015: RM204mn) (9MFY16: RM28mn)
Slide 13: Key Divisional Highlights - Motors
B Key Divisional Highlights - Motors New Models Launched in 3QFY2017 Ford Ranger Black WildTrak BMW 1-Series March 2017, Malaysia March 2017 China All New BMW 5-Series Enhanced dynamics, unmatched connectivity and an innovative operating system March 2017 China, Malaysia & Singapore Key Highlights •
Slide 14: Key Divisional Highlights - Industrial
B Key Divisional Highlights - Industrial FY2016 9MFY2017 External RM9,618mn, -9% YoY RM7,245mn (+0.4% YoY) Revenue FY2015: RM10,558mn 9MFY16: RM7,217mn PBIT RM326mn, -37% YoY RM188mn (-11% YoY) FY2015: RM521mn 9MFY16: RM211mn Malaysia RM53mn, -40% YoY RM51mn, +65% YoY (FY2015: RM88mn) (9MFY16: RM31m
Slide 15: Key Divisional Highlights - Industrial
B Key Divisional Highlights - Industrial MALAYSIA RM1.25 • Improvement in equipment deliveries & product support sales, billion driven by the construction sector Order book as at • Potential new job opportunities from mega-infrastructure 31 Mar’17 projects in Malaysia (e.g. LRT, MRT, WCE, HSR, Pan B
Slide 16: Key Divisional Highlights - Logistics
B Key Divisional Highlights - Logistics FY2016 9MFY2017 External RM629mn, -14% YoY RM222mn (+2% YoY) Revenue FY2015: RM730mn 9MFY16: RM217mn PBIT RM106mn, -16% YoY RM36mn (-48% YoY) FY2015: RM126mn 9MFY16: RM69mn Weifang and RM98mn, +27% YoY RM20mn, -66% YoY Jining Ports (FY2015: RM77mn) (9MFY16: RM
Slide 17: Key Divisional Highlights - Others
B Key Divisional Highlights - Others FY2016 9MFY2017 External RM50mn, -29% YoY RM34mn (-13% YoY) Revenue FY2015: RM71mn 9MFY16: RM39mn PBIT RM23mn, >+100% YoY RM38mn (+192% YoY) FY2015: RM-36mn 9MFY16: RM13mn Ramsay Sime RM27mn, +80% YoY RM28mn, +33% YoY Darby Health (FY2015: RM15mn) (9MFY16: RM21mn
Slide 18: Overview of Borrowings Position
A Overview of Borrowings Position Breakdown of long-term borrowings and short-term borrowings Total Borrowings: RM15.8bn Total Borrowings: RM15.2bn Total Borrowings: RM15.0bn D/E Ratio: 44% D/E Ratio: 38% D/E Ratio: 37% In RM million 11,999 11,412 8,325 6,722 4,419 3,168 30 Jun'16 31 Dec'16 31 Mar'1
Slide 19: Credit Ratings
A Credit Ratings Sime Darby Berhad Baa1, Negative As at 26 May’17 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, Stable As at 26 May’17 BBB+, Stable As at
Slide 20: FY2017 Headline KPI Targets
A 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 TA
Slide 21: Sime Darby's Pure Play Strategy
C Sime Darby’s Pure Play Strategy 1 2 3 The Sime Darby Our strengths Rationale for journey & aspirations Pure Play strategy 4 5 6 The way Transaction Proposed Internal forward structure Restructuring & Timeline 21
Slide 22: Journey to date
C1 Journey to date A long and proud heritage Humble Proudly driving beginnings Malaysia’s growth 1800 - 1900s 1900s - 2007 ▪ Pioneering ▪ Growth through international British expansion entrepreneurs ▪ Acquired Caterpillar and planters dealership in 1929 established ▪ Partnered with BMW in 1987 tradi
Slide 23: Journey to date
C1 Journey to date A long and proud heritage A leading Industry leaders multinational corporation Present in #1-2 25 in all our key sectors and geographies in countries and 4 Plantation, Property, territories across Motors, Industrial the world and Logistics Note: Sime Darby Plantation is the world’
Slide 24: Our strengths & aspirations - Plantation
Our strengths & aspirations C2 Over the years, Sime Darby has developed key strengths in core business sectors PLANTATION World’s largest listed #1 oil palm plantation company by planted area Global producer of #1 Certified Sustainable Palm Oil (CSPO)¹ First company in the world to fully #1 sequence
Slide 25: Our strengths & aspirations - Property
Our strengths & aspirations C2 Over the years, Sime Darby has developed key strengths in core business sectors PROPERTY Malaysia’s largest #1 property developer by land bank Strategic land bank within and around the Malaysia Vision Valley and the Kuala Lumpur-Singapore High Speed Rail Strategic join
Slide 26: Our strengths & aspirations - Motors, Industrial, Logistics
Our strengths & aspirations C2 Over the years, Sime Darby has developed key strengths in core business sectors Motors, Industrial, Logistics & other businesses Longstanding partnerships with world-leading brands Distinctive distribution capabilities Caterpillar dealer #3 globally BMW dealer #2 globa
Slide 27: Our Vision
Today, we stand at the beginning of C2 Sime Darby’s future Sime Darby ▪ Plantation company of the future with operational excellence, innovation and sustainability Plantation ▪ Leading in agricultural R&D and innovative “The next 100 years” technology Our Vision ▪ Strong growth through expansion acr
Slide 28: Rationale - Pure Play strategy to unlock value
Rationale - Pure Play strategy C3 to unlock value 1 2 3 4 Focus and agility Unlock value Accelerate growth Human to pursue distinct for all through governance resources aspirations and shareholders and equity market development strategies benefits ▪ Sime Darby Plantation ▪ Achieve full potential ▪ E
Slide 29: The way forward
The way forward C4 3 international and regional champions Strategy for each Pure Play: Ride on growth momentum of Strengthen leading position in upstream “integrated play” ▪ Achieve operational excellence, maximise yield ▪ Expand presence in high-margin products and attractive mid and downstream mar
Slide 30: Transaction structure
C5 Transaction structure Transaction structure – dividend in specie CURRENT STRUCTURE Kumpulan Wang Amanah Saham Permodalan Employees Persaraan Other Bumiputera Nasional Berhad Provident Fund (Diperbadankan) Shareholders (ASB)* (PNB) Board (EPF) (KWAP) 38.3% 40.9% 6.1% 9.7% 5.0% Sime Darby Plantatio
Slide 31: Transaction structure
C5 Transaction structure Transaction structure – dividend in specie STRUCTURE POST PURE PLAY STRATEGY Other ASB PNB EPF KWAP Shareholders 40.9% 6.1% 9.7% 5.0% 38.3% Sime Darby Sime Darby Property Sime Darby Plantation Plantation Plantation Property Property Industrial Motors Logistics Others Busines
Slide 32: Optimal capital structure for Pure Play entities
Key areas to ensure optimal capital C6 structure for Pure Play entities Sime Darby is undertaking an internal restructuring of the Group and its subsidiaries involving the following to ensure that an optimal capital structure is achieved for the listed pure-play entities. A) Status Restructuring of
Slide 33: Timeline
Timeline C6 TODAY Sime Darby Plantation (SDP) Submission EGM Restructuring achieved ratings of Baa1 and of of the BBB+ by Moody’s and Fitch Prospectus remaining Ratings respectively, both on borrowings stable outlook 27 Feb’ Apr’ May’ Jun’ Aug’ Aug’ Aug’ Sep to Nov’ Nov’ Dec’ END 17 17 17 17 17 17 1
Slide 34: Appendices
APPENDICES 1. Group 2. Plantation 3. Property 4. Motors 5. Industrial 6. Logistics 34
Slide 35: Broad Mix of Strong & Reputable Shareholders
Broad Mix of Strong & Reputable Shareholders Employees Provident Fund Malaysia’s largest pension fund EPF RM9.54 Share Price 9.7% As at 21st July 2017 Others 37.8% Shareholding RM64.9 billion Structure Market Capitalisation As at 30th June 2017 PNB As at 21st July 2017 52.5% 15.3% Foreign Shareholdi
Slide 36: 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 37: Plantation – Strategically Located Downstream Assets
Plantation – Strategically Located Downstream Assets ~4.0 million MT NETHERLANDS SD Unimills Refining Capacity (450,000 MT/year) UNITED KINGDOM New Britain Oils 11 (300,000 MT/year) Crushing Plants VIETNAM GH Nha Be Edible Oils (99,000 MT/year) THAILAND 685,140 MT/year Morakot Industries (379,500 MT
Slide 38: Plantation - Operational Statistics as at Mar'17
Plantation - Operational Statistics as at 31 Mar’17 MALAYSIA INDONESIA PNG LIBERIA TOTAL 9MFY17 9MFY16 9MFY17 9MFY16 9MFY17 9MFY17 9MFY17 9MFY16 FFB Production (mn MT) 3.89 4.06 2.15 2.29 1.28 11,940¹ 7.33 7.52 FFB yield per mature ha (MT/ha) 15.25 15.59 12.81 12.80 17.06 2.03 14.55 14.63 CPO Produc
Slide 39: Plantation – Oil Palm Age Profile
Plantation – Oil Palm Age Profile MALAYSIA INDONESIA NBPOL LIBERIA 7% 5% 5% 11% 16% 16% 12% 18% 29% 39% 13.2 yrs 14.4 yrs 10% 11.0 yrs 23% 3.6 yrs Average Palm 18% Average Palm 16% Average Palm Average Palm Tree Age Tree Age Tree Age Tree Age 10% 61% 22% 19% 29% 32% 13.1 yrs Group’s Weighted Average
Slide 40: Plantation – Key Sustainability Achievements
Plantation – Key Sustainability Achievements RSPO Certification Status Constituent of Environmental, Social & Corporate Status (as at 31 Malaysia Indonesia PNG & SI Liberia Total Governance (ESG) Indices Mar’17) Certified 34/34 23 /24 12/12 0/1 69/71 Since 2015 : % of 100% 96% 100% - 97% completion
Slide 41: Plantation – Pioneering Good Agricultural Practices
Plantation – Pioneering Good Agricultural Practices Open Palm Traceability Hotspot Management 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 plant
Slide 42: Plantation – Improving Yields with Genome Select Materials
Plantation – Improving Yields with Genome Select Materials Excellent replanting standards with Premium Materials • Sime Darby Plantation commenced its first large scale planting of Genome Select high yielding oil palms on 25th of April ’16 • The planting of 100 ha of Genome Select Seeds was carried
Slide 43: Property – 40 years of Building Sustainable Communities
Property – 40 years of Building Sustainable Communities 23 active townships in Malaysia Over 25,000 acres Landbank 41 Ongoing property development phases 43
Slide 44: 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 4 0 : 4 0 : 2 0 VENTURE S
Slide 45: Motors – Marques by Region
Motors — Marques by Region MALAYSIA SINGAPORE PEUGEOT Rental HYUNDAI Assembly (INOoKOM) Tertty HONG KONG MACAU AUSTRALIA Distributor & Dealer ma NEW ZEALAND VIETNAM Distributor Distributor & Dealer & Dealer TAIWAN Distributor & Dealer/
Slide 46: Motors – Strategic Developments in Key Geographical Footprints
Motors – Strategic Developments in Key Geographical Footprints Key highlights over the years Acquisition of KIA distributorship in Taiwan and the FY2014 acquisition of BMW & MINI distributorships in Brisbane, Australia and Vietnam Acquisition of a new Ferrari dealership in Brisbane, Australia and th
Slide 47: Industrial – Global Footprint
Industrial – Global Footprint AUSTRALASIA • PINS leadership of 50%* in the mining sector (Queensland & Northern Xinjiang Territory, Australia) • Mining, general construction and government sectors CHINA/HK • Hunan • Jiangxi • • Guangxi Fujian CHINA/HONG KONG • Guangdong • Ranked top 3 among • Hainan
Slide 48: Industrial – The Mine Energy Solutions (MES) Project
Industrial – The Mine Energy Solutions (MES) Project MES is a 50:50 JV between Sime Darby Industrial and IntelliGas. • IntelliGas is a gas technology specialist which developed and patented high-density compressed natural gas (HDCNG™) supply solutions for mobile mining equipment. Potential Benefits:
Slide 49: 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 50: 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 51: 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 52: Thank You
Thank You SIME DARBY INVESTOR RELATIONS investor.relations@simedarby.com +(603) 2691 4122 http://www.simedarby.com/Overview.aspx 52