Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — Investor Presentation (June 2020)
41 slides from Sime Darby Bhd's investor presentation, June 2020
Slide 1: Sime Darby Berhad Investor Presentation June 2020
SIME DARBY BERHAD Investor Presentation June 2020
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
Slide 3: Table of Contents
STRICTLY PRIVATE & CONFIDENTIAL Table of Contents Section Page 1. Sime Darby Berhad 3 2. Industrial Division 11 3. Motors Division 20 4. Logistics Division 30 5. Healthcare Division 34 6. Appendices 37 2
Slide 4: Company overview
STRICTLY PRIVATE & CONFIDENTIAL Company overview 3
Slide 5: Sime Darby Berhad: 18 Countries & 19,909 Employees
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Berhad Leading trading company in Asia Pacific with strong partnerships with premium brands One of the largest BMW dealers in the world South Korea One of the largest CAT China dealers globally Hong Kong 6 hospitals in Malaysia & 18 Countries & Macau Taiwan
Slide 6: Our Core characteristics
STRICTLY PRIVATE & CONFIDENTIAL Our Core characteristics High volume, low margin business with significant footprint across Asia; world class partners Exposure to megatrends Vast network across Asia Pacific Business is a proxy to: • Established network and strong • Commodity price cycle for Industri
Slide 7: Segmental Information
STRICTLY PRIVATE & CONFIDENTIAL Segmental Information Diversified exposure across segments and geographies, low gearing for expansion (Financial Year Ended 30 June 2019; RM million) Total Revenue (FY2019) Capital Structure (1HFY20) By Segment By Geography Debt/Equity: 38.5% 14,900 Logistics Others 1
Slide 8: FY2020 Financial Results
STRICTLY PRIVATE & CONFIDENTIAL FY2020 Financial Results Reported Profit: 6 months ended 31 December 2019 In RM Million 1H FY2020 1H FY2019 YoY % Revenue 19,685 18,268 7.8 PBIT 827 684 20.9 Finance income 23 17 Finance costs (85) (62) Profit before tax 765 639 19.7 Taxation (209) (64) Profit after t
Slide 9: FY2020 Financial Results: Core Profit
STRICTLY PRIVATE & CONFIDENTIAL FY2020 Financial Results Core Profit: 6 months ended 31 December 2019 In RM Million 1H FY2020 1H FY2019 YoY % Reported PBIT 827 684 20.9 Adjustments • Motors Vietnam - (15) • Gain on disposals - (96)1 • Fair value loss on financial assets (MES) 9 50 • Impairment of eq
Slide 10: 5-Year Value Creation Plan
STRICTLY PRIVATE & CONFIDENTIAL 5-Year Value Creation Plan Blueprint intact; Enhanced focus on Mobility & Healthcare; To continue operating Logistics To be the leading Motors & Industrial multi-national in Asia Pacific Revenue Cost Monetisation of Organic Business Expand Synergistic M&A enhancement
Slide 11: Tesco Disposal
STRICTLY PRIVATE & CONFIDENTIAL Tesco Disposal Expected to result in a Net Gain on Disposal of RM270 million Description of the Deal • On 22 April 2020, Sime Darby entered into conditional agreements with C.P. Retail Development Company Limited, Tesco Holdings B.V. and Tesco PLC to divest our 30% st
Slide 12: Industrial Division
STRICTLY PRIVATE & CONFIDENTIAL Industrial Division 11
Slide 13: Sime Darby Industrial: Regional Presence
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Regional Presence Across 18 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
Slide 14: Sime Darby Industrial: Strong brands and market reach
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 HK& Macau, (via JV with China Kubota Corp) Singapore, Maldives, Christmas Island Asia Pacific regi
Slide 15: Industrial Division
STRICTLY PRIVATE & CONFIDENTIAL Industrial Division Margin improvement in all regions with strongest result from Australasia Australasia +16.7% +45.5% 7,971 547 • Higher equipment deliveries to both mining and construction 6,832 sectors. 376 • Profit contribution from Hardchrome Dec 2019 – RM12.5m v
Slide 16: Industrial Outlook
STRICTLY PRIVATE & CONFIDENTIAL Industrial Outlook Order book increased 15.4% from Sept 2019 MALAYSIA • On-going projects such as Pan Borneo Highway supporting the RM2,868m construction sector. Order book as at • Revival of ECRL and continuation of infrastructure projects such as 31 December 2019 MR
Slide 17: Acquisition of Gough Group
STRICTLY PRIVATE & CONFIDENTIAL Acquisition of Gough Group Rare opportunity to expand CAT franchise into NZ • Caterpillar distributor in New Provides comprehensive range of CAT Forestry Zealand and products and services CAT Pacific Islands since 1932 Building Construction • 23 locations and 455 empl
Slide 18: Sime Darby Industrial: Key Financial Highlights
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Key Financial Highlights Revenue (RM million) PBIT (RM million) 14,429 14,113 1,396 13,575 1,331 13,041 12,073 10,962 1,106 10,637 1,039 9,946 10,127 898 8,645 8,210 7,971 793 798 7,629 725 612 552 547 341 253 FY2008 FY2009 FY2010 FY2011 FY2012 F
Slide 19: Industrial Revenue & PBIT by Region (1/2)
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Revenue & PBIT by Region (1/2) 1HFY20 Sales Contribution Products / Services Revenue (RM million) PBIT (RM million) & YoY Orderbook 1HFY20 Sales Contribution CAT New Equipment & Engines 8.5% 5.2% 5.5% 3.9% 4.6% 4.0% Malaysia, 7% 1,423 1,230 1,184
Slide 20: Industrial Revenue & PBIT by Region (2/2)
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Revenue & PBIT by Region (2/2) 1HFY20 Sales Contribution Products / Services Revenue (RM million) Core PBIT (RM million) & YoY Orderbook 1HFY20 Sales Contribution CAT New Equipment & 4.7% 3.9% 3.5% 4.1% 4.9% 5.3% Engines China / HK / Macau, 26% 1
Slide 21: Motors Division
STRICTLY PRIVATE & CONFIDENTIAL Motors Division 20
Slide 22: Sime Darby 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 Gough Group globally ▪ One of Top Rolls Royce dealers China Taiwan in Asia Pacific ▪
Slide 23: Sime Darby Motors: 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 &
Slide 24: Motors Division
STRICTLY PRIVATE & CONFIDENTIAL Motors Division Increase in revenue and profits in the Greater China region China, HK, Macau & Taiwan +3.4% +15.4% 277 • Higher revenue and improved margin at BMW China operations. 11,190 11,569 240 • HK Rolls Royce and Suzuki recorded higher unit sales • Taiwan recor
Slide 25: Motors Outlook
STRICTLY PRIVATE & CONFIDENTIAL Motors Outlook Sales in China expected to be significantly affected by the coronavirus outbreak 43,264 4,287 4,637 9,659 7,875 Units Sold Units Sold (1H FY2019: 45,190) Units Sold 1H 1H 7,438 FY2019 FY2020 9,066 22,178 23,314 12,394 Units Assembled (1H FY2019: 19,496)
Slide 26: Motors Outlook: Upcoming model launches
STRICTLY PRIVATE & CONFIDENTIAL Motors Outlook Upcoming model launches expected to boost sales in 2QFY2020 BMW 530Le BMW X1 China –Q3FY2020 Malaysia – Jan 2020 Porsche Macan GTS MINI BEV Aus/NZ – Feb 2020 Malaysia – Mar 2020 25
Slide 27: Acquisition of Trivett dealerships in Sydney
STRICTLY PRIVATE & CONFIDENTIAL Acquisition of 3 Trivett dealerships in Sydney Expansion of luxury car dealership footprint in Australia Purchase price consideration of AUS$112 million Branch Locations in Paramatta Auto-Alley (RM321 million) Strategic Rationale: [1] 1. Expansion in Australian retail
Slide 28: Sime Darby Motors: Key Financial Highlights
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Key Financial Highlights Revenue (RM million) PBIT (RM million) 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
Slide 29: Motors Units Sold, Revenue & PBIT by Region (1/2)
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Units Sold, Revenue & PBIT by Region (1/2) 1HFY20 Sales Reported Revenue & PBIT Marques Units Sold Contribution & Units Sold (RM million) 4.7% 2.6% 6.2% 6.1% 6.3% 3.6% Malaysia 26,607 Malaysia, 223 219 247 204 16% 18,57117,663 16,61116,872 87 66 Mala
Slide 30: Motors Units Sold, Revenue & PBIT by Region (2/2)
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Units Sold, Revenue & PBIT by Region (2/2) 1HFY20 Sales Reported Revenue & PBIT Marques Units Sold Contribution & Units Sold (RM million) 1.6% 1.7% 2.7% 3.2% 2.3% 2.9% China / HK / Macau / Taiwan 43,537 231 277 235 124 134 163 China/HK/Macau, 33,915
Slide 31: Logistics Division
STRICTLY PRIVATE & CONFIDENTIAL Logistics Division 30
Slide 32: Logistics 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
Slide 33: Sime Darby Logistics
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Logistics Logistics recorded lower profit mainly due to share of loss from joint ventures Logistics 150 -20.7% -87.5% Ports 119 104 • Lower cargo throughput at Weifang Port due to adverse weather conditions and competition. • Despite the lower throughput, p
Slide 34: Key Financial and Operational Highlights
STRICTLY PRIVATE & CONFIDENTIAL Key Financial and Operational Highlights Revenue (RM million) PBIT (RM million) 341 Lower Jining Port tariffs as a 303 103 result of intense competition & 294 294 tighter environmental controls 66 283 - by Jining authority 250 44 53 60 19 28 77 74 70 - 37 12 64 2 - 6
Slide 35: Healthcare Division
STRICTLY PRIVATE & CONFIDENTIAL Healthcare Division 34
Slide 36: Ramsay Sime Darby Health Care
STRICTLY PRIVATE & CONFIDENTIAL Ramsay Sime Darby Health Care Premium hospitals in Malaysia and Indonesia ranging from primary to quaternary care Ara Damansara Medical Subang Jaya Medical Centre Park City Medical Centre Joint Venture with Ramsay Centre ▪ Opening date: 1985 ▪ Opening date: 2012 ▪ Ope
Slide 37: Ramsay Sime Darby Health Care: Earnings growth
STRICTLY PRIVATE & CONFIDENTIAL Ramsay Sime Darby Health Care Significant earnings growth since inception of JV; strong growth in Asia expected to continue RSDH Financials SDB Share of RSDH JV +6.7% 32 30 962 847 881 800 719 657 534 Dec-18 Dec-19 Healthcare PBIT FY2014 FY2015 FY2016 FY2017 FY2018 FY
Slide 38: Appendices
STRICTLY PRIVATE & CONFIDENTIAL Appendices 37
Slide 39: Executive Leadership
STRICTLY PRIVATE & CONFIDENTIAL Executive Leadership Qualified & Experienced Management Team DATO’ JEFFRI SALIM MUSTAMIR MOHAMAD DATUK THOMAS LEONG ROSELAINI FAIZ NOOR ZITA HASSAN DAVIDSON Group Chief Financial Group Chief Strategy Group Chief Human Resource Group Secretary Group Chief Executive Off
Slide 40: 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
Slide 41: Thank You
STRICTLY PRIVATE & CONFIDENTIAL Thank You 40
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