Sime Darby Bhd. · MYX:SIME

Sime Darby Bhd — CLSA Investors' Forum (Hong Kong) 2018

44 slides from Sime Darby Bhd's conference presentation, September 2018

  1. Slide 1: Sime Darby Berhad CLSA Investors' Forums (Hong Kong)

    SIME DARBY BERHAD CLSA Investors’ Forums (Hong Kong) September 2018

  2. Slide 2: Disclaimer

    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 purpose. Upon request, you shall p

  3. Slide 3: Table of Contents

    Table of Contents Section Page 1. Sime Darby Berhad 3 2. Motors Division 14 3. Industrial Division 24 4. Logistics Division 34 5. Others 37 6. Appendices 40 Strictly Private & Confidential 2

  4. Slide 4: Company overview

    Company overview Strictly Private & Confidential 3

  5. Slide 5: Sime Darby Berhad

    Sime Darby Berhad  Leading trading company in APAC with strong partnerships with premium brands Motors Industrial Logistics Healthcare #2 BMW dealer globally #3 Caterpillar dealer globally China 4 ports in China South Korea Macau Hong Kong 6 hospitals in Malaysia & Indonesia Taiwan Thailand Vietnam

  6. Slide 6: Business overview

    Business overview  Diversified trading and logistics company; valuable healthcare component Motors Industrial Logistics Healthcare  Retail, distribution and assembly  Comprehensive range of  Ports & Logistics and Water  50:50 JV with Ramsay businesses equipment and services i.e. new Management

  7. Slide 7: FY18: Segmental Information

    FY18: Segmental Information  Diversified exposure across segments and geographies, low gearing for expansion (FYE June; RM mm) Total Revenue Capital Structure By Segment By Geography Debt/Equity: 19.6% Logistics Others 1% 0% SEA (excl. Msia) Malaysia 15% 14,759 17% 389 Industrial 39% (2) 14,370 Mot

  8. Slide 8: FY2018 Financial Results

    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 income1 104 512 Finance costs (113) (289) Profit before tax 1,065 1,007 5.8 Taxation (380) (212) Profit from continuing operations 685 795

  9. Slide 9: FY2018 Financial Results: Core Net Profit

    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 1991 66 • Impairment of equity in E&O 103 - • Disposal

  10. Slide 10: Snapshot of borrowings position

    FY2018 Results Announcement  Snapshot of borrowings position Long Term vs Short Term Borrowings Total Borrowings 2,889 2,647 247 274 RM 2.89bn 2,373 2,642 As at 30 June 2018 Mar-18 Jun-18 ST Borrowings LT Borrowings RM14.8bn 19.6% RM1.67bn Bank balances, deposits Total Equity Debt/Equity Ratio and

  11. Slide 11: Segmental Financials

    Segmental Financials  Core businesses of Motors and Industrial provide good ROAIC Historical ROAIC (FY18 ROAIC vs 10-year and 5-year average) By Segment FY18 14% 13% 10-year avg. 5-year avg. 10% 8% 9% 8% 7%  Core businesses: Motors and 5% 4% Industrial core businesses provide 4% 4% 3% the highest

  12. Slide 12: Value Creation Plan

    Value Creation Plan  Value creation: Delivering returns and growth To be the leading Motors & Industrial multi-national in Asia Pacific RATIONALISING RATIONALISING OPERATIONAL ACCELERATING NON-CORE NON-CORE EXCELLENCE GROWTH BUSINESSES BUSINESSES • Optimise cost • Leverage on mining • Re-deploy cap

  13. Slide 13: Business characteristics

    Business characteristics  High volume, low margin business with significant footprint across Asia; strong partnerships High volume, low margin Cyclical business Long-standing partnership business with premium brands Business dependent on commodity SDB’s business is characterized by high cycle (coal

  14. Slide 14: Sime Darby: Executive Leadership

    Sime Darby: Executive Leadership  Qualified & Experienced Management Team Jeffri Salim Davidson Andrew Basham Group Chief Executive Officer Managing Director, Sime Darby Motors  Appointed Deputy Group CFO in 2016 and previously Senior  Appointed as Managing Director of Motors Division in March Vi

  15. Slide 15: Motors Division

    Motors Division Strictly Private & Confidential 14

  16. Slide 16: History & Key Milestones

    History & Key Milestones  Solid Track Record Across 9 Markets in the Asia Pacific Region BMW (HK & Macau) New Zealand Malaysia & China Vietnam, Taiwan, 1972 1998 2010 2013 Acquired the sole importer Acquired 80% of  Appointed distributor & Malaysia, Australia and distributor of BMW cars Continenta

  17. Slide 17: Sime Darby Motors

    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 & Dealer & Dealer & Dealer & De

  18. Slide 18: Sime Darby Motors

    Sime Darby Motors  Focused on Expansion in Asia Pacific Current Presence SDM represents 31 strong China Distributor & Dealer luxury, mass market and Dealer trucking brands across 9 Assembly Rental markets in Asia Pacific. Countries & Achievements Hong Kong Taiwan • #2 BMW dealer globally • One of T

  19. Slide 19: Sime Darby Motors

    Sime Darby Motors  Focus on new launches, expand assembly, M&A for new territories V IV “Future III Proofing” Strategy Business II Expansion Expand Objectives I Assembly Turnaround Loss Makers/ Divestment of Operational non-core Excellence  Leverage on new  Divestment of  Assembly for  Explore

  20. Slide 20: Sime Darby Motors: Key Financial Highlights

    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 and & timely launches of new BM

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

    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, 204 223 210 18% 31,230 26,607 87 Malaysia 4,563 4,323 18,571 17,663 3,573 3,576 16,611 3,385 (1)

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

    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 35,601 124 134 34,293 11,000 33,915 31,827 10 0 31,596 10,000 China/HK/Macau, 8,

  23. Slide 23: Improved performance in China region

    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 and growing dealer 19,500 400

  24. Slide 24: Upcoming Model launches

    Sime Darby Motors  Upcoming Model launches Lamborghini Urus BMW i8 Coupe August 2018 August 2018 BMW 6 Series GT Jaguar F-Type September 2018 September 2018 Strictly Private & Confidential 23

  25. Slide 25: Industrial Division

    Industrial Division Strictly Private & Confidential 24

  26. Slide 26: History & Key Milestones

    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 acquisition of Bucyrus by 1992 Ca

  27. Slide 27: Sime Darby Industrial

    Sime Darby Industrial  Strong brands and comprehensive market reach throughout 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 Island Asia Pacific region

  28. Slide 28: Regional Presence Across Countries and Territories

    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, service maintenance, equipment CHINA/HK  Guangdong

  29. Slide 29: Key Industry Highlights

    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 profitability has 50 sparked renewed

  30. Slide 30: Sime Darby Industrial

    Sime Darby Industrial  Leverage on commodity boom, digital is key enabler, enhance recurring income profile IV III Divestment/ Restructuring of Non-Core II Organic Business Businesses Expansion Objectives I Cost Optimization Revenue Enhancement  Enhanced sales from  Operational  Expansion into 

  31. Slide 31: Sime Darby Industrial: Key Financial Highlights

    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 FY2016 FY2017 FY2018 FY2008 FY2009

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

    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 1,230 1,184 1,099 104 Malaysia 993

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

    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 Excavators Dozers 112 East Asia 2,610 2

  34. Slide 34: Strong demand in Australia mining and China infrastructure

    Sime Darby Industrial  Strong demand in 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 390 +15,400% parts) attributed t

  35. Slide 35: Logistics Division

    Logistics Division Strictly Private & Confidential 34

  36. Slide 36: Business Overview

    Business Overview  Targeted Total Capacity of ~100 million MT by 2020  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 Division also operates three river ports located in

  37. Slide 37: Key Financial and Operational Highlights

    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 75 213 64 65 41 44 2014 2015 2016 201

  38. Slide 38: Others

    Others Strictly Private & Confidential 37

  39. Slide 39: Ramsay Sime Darby Health Care

    Ramsay Sime Darby Health Care  Healthcare in Asia supported by favourable macro trends Active Beds: 1,152 Bed Capacity: 1,541 50% Assets in Malaysia Subang Jaya Ara Damansara ParkCity MEDIPLEX RSDH College Medical Centre Medical Centre Medical Centre Wellness Centre Assets in 50% Indonesia RS Premi

  40. Slide 40: Malaysia Vision Valley Land

    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 11th Malaysia Plan and the Nat

  41. Slide 41: Appendices

    Appendices Strictly Private & Confidential 40

  42. Slide 42: Proposed Corporate Structure Post-Proposals

    Sime Darby Berhad Proposed Corporate Structure Post-Proposals (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 Logistics Healthcare & Ot

  43. Slide 43: FY2018 Balance Sheet

    SDB Group  FY2018 Balance Sheet Historical Financials Healthcare (FYE June; RM million) Motors Industrial Logistics Pro Forma & 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 2,319 300 467 5,713 Tax

  44. Slide 44: Thank You

    Thank You Strictly Private & Confidential 43

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