Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — Investor Day (February 2025)
36 slides from Sime Darby Bhd's investor day presentation, Feb 4, 2025
Slide 1: Sime Darby Berhad Corporate Investor Day
Sime Darby Berhad Corporate Investor Day 4 February 2025 Copyright © 2024 Sime Darby Berhad
Slide 2: Section 1 Overview Of The New Sime
Section 1 Overview Of The New Sime Continuous Demand for Commodities Long-term bullish on China Malaysian Automotive Leader Deep Intrinsic Value Copyright © 2024 Sime Darby Berhad 2
Slide 3: Overview Of Sime
Ov rv w Of S m Sime Is A Leading Trading Company In Asia Pacific, Built On Strong Partnerships With Top Automotive And Industrial Brands FY 2024 R v n * PATAMI PBIT * Sh r h r ’ q y RM 7.1 n RM . n RM .8 n RM19.4 n >30,000 18 Employees Countries & Territories W h r n r A P fi w n n gr w & v r n v r
Slide 4: Our universe of partners: partner of choice for leading brands
O r nv r f r n We are the partner of choice for many of the world’s leading brands Industrial Motors Copyright © 2024 Sime Darby Berhad 4 N : Br n r n xh v
Slide 5: What Is Next For Sime Darby?
Wh I N x F r S m D r y? H v ng m h x n f Ph 1 f rm r n w r g r f r h N x Ph Phase 1 Completed Phase 2 A Grow the Core C New Strategic Partners What Is Next Ex n In r n n m n ng n nfr r r m. S r T y n for Sime Darby? P r v UMW. Salmon Onsite Cavpower UMW A n We have a disciplined g v rnm n r n progra
Slide 6: How Sime Darby Has Evolved (1/2)
H wSm D r yH Ev v (1/ ) W h h UMW q n w h v v r fi rr v n r r g n 1 Diversified Geographical Revenue 2 Healthy Gearing Position Following the acquisitions, our gearing has increased to Australasia 0.57x but remains manageable. “ Others 12% Malaysia 13,211 16% China 2,231 Revenue by 540 FY2023 geogra
Slide 7: How Sime Darby Has Evolved (2/2)
H wSm D r yH Ev v ( / ) W h v r n w r n r nT y n x n r r n r h v h n 3 Secured a New Strategic Partner 4 Built up new capabilities Industrial expansion “ Secured CAT dealership for South B y r Industrial UMW Australia, a rare boon Motors L g Pr ng R v n y Load & Rental Salmon and Onsite strengthen g
Slide 8: Our business overview
O r n v rv w Our business is in retail & aftersales for industrial equipment & motors; we also acquired new capabilities with UMW acquisition Industrial Motors UMW Equipment sales & after-sales R r n S r n w r g r n r h rv r n & m y w hw r - r n h Toyota n Perodua 10 markets w h v r 14 n r & rr r M
Slide 9: Sime: Financial Performance (FY2018-FY2024)
Sm :Fn n P rf rm n (FY 018-FY 0 4) We have more than doubled our revenue and profits and have paid out sustainable dividends Revenue* (RM million) Net Profit (RM million) Core PBIT* (RM million) In g n n f 67,132 R m ySm D r yH h r 3,306 China 2,709 Singapore and Others 225 44,302 42,502 48,288 Mala
Slide 10: ROE & Dividend Yield
ROE & D v n Y Our roadmap to achieving 11% ROE and improving our Dividend Yield A Historical ROE performance B Historical dividend payout ratio 18.2% Historical Payout Trend: Consistently between 60%–80% (FY2019-FY2023) 7.1% 9.3% 7.6% 9.1% We have consistently paid above 50% based on Core Net Profit
Slide 11: Sime Darby is a proxy to the growth of Asia Pacific
Sm D r y r xy h r m r gr w h f A P fi Our businesses have exposure to high-value segments across Asia Pacific Operating in Asia Pacific, Leading Malaysia’s a dynamic growth region automotive sector Asia is the fastest growing and most dynamic With UMW, we have the largest market share in region in t
Slide 12: Re-rating the Asia Pacific consumption story
R ng n h A n m nS ry We should trade at a similar multiples to other Asia Pacific consumption stocks A hr v ng n m r ng f y S r ng r n q y W r ng f r R ng h h r gn w h n w h h gh- r ng fr m n m r m v r m n n m r ’ r f r v m w-m rg n r w ng f r v r m r . r r y fr m rg n r . g m . mm n r m mf r R y f
Slide 13: Sustainability At Sime
S n yA Sm In FY2024, Sime charted significant progress in meeting our sustainability targets Net Zero Environment Social Governance 1. Committed to Net Zero Carbon 1. Increasing our solar capacity 1. Deployed the Driving Our 1. Implemented the Responsible Emissions by 2050. 7.1GWh n v ng ~ 900 Achie
Slide 14: Executive Leadership
Ex v L r h Qualified & Experienced Management Team DATO’ JEFFRI SALIM MUHAMMAD NOOR ABD DEAN MEHMET ANDREW BASHAM DATO’ MUSTAMIR MOHAMAD DAVIDSON AZIZ M n g ng D r r M n g ng D r r M n g ng D r r Gr h f Ex v Offi r Gr h fFn n Offi r In r Dv n M r Dv n UMW D v n MEGAT SHAHRUL AZMIR ALICIA O’DONOGHUE
Slide 15: Overview Of The New Sime: Section 2
Overview Of The New Sime Section 2 Continuous demand for Commodities Long-term bullish on China Malaysian Automotive Leader Deep Intrinsic Value Copyright © 2024 Sime Darby Berhad 15
Slide 16: The Strategic Role Of Australia In Asia Pacific
Th S r g R Of A r In A P fi Australia is strategically positioned to supply the critical resources required for Asia Pacific’s growth Industrial’s Resources Revenue by Commodity (FY24) >A$470 billion n Met Coal g x r A P fi Thermal Coal R r r r n 65% f A r n x r 27% 33% Gold & Copper A P fi Bauxite
Slide 17: Long & Sustained Demand For Australian Met Coal
L ng & S n D m n F rA r nM With growth in met coal, we are positioned to capitalise on increased demand for equipment, parts, and services A. Strong Demand B. Diversified Customer Base C. Lowest Cost Producer Ensures for Met Coal for Commodities Longevity A r ’ M r r r Globally, m n f r met coal In
Slide 18: Energy Transition Will Further Drive Growth
En rgy Tr n nW F r h r Dr v Gr w h Sime’s exposure to Australia’s critical minerals positions us to be an indispensable part of the net zero global economy A. Intensifying Demand for Metals from the Energy Transition Energy Transition requires even more intense demand for metals and minerals -E r v
Slide 19: Our Diversified Portfolio In Australia Provides Resilient Earnings
O r D v r fi P r f In A r Pr v R n T O r E rn ng Sustained Growth Driven by High-Margin After-Sales and Strategic Acquisitions in Key Markets 1. High margin after-sales business continue to boost our 2. Our acquisitions position us at the forefront of Energy earnings Transition Revenue (RM million)
Slide 20: Overview Of The New Sime: Section 3
Overview Of The New Sime Continuous demand for Commodities Section 3 Long-term bullish on China Malaysian Automotive Leader Deep Intrinsic Value Copyright © 2024 Sime Darby Berhad 20
Slide 21: Economic Headwinds In Our Key Markets
E n m H wn In O r K y M r Sime faces challenges in our key markets, but our broad brand portfolio gives us flexibility And consumers are China Brands Have Overtaken Western Change In Sales Of Brands By A Brands buying more EVs and B Country fewer ICEs China Passenger Vehicle Retail Sales Volumes By
Slide 22: China Is Still The Fast-Growing Large Economy
h n I Th F -Gr w ng L rg E n my Despite the slowdown, China is still growing at a strong 5% rate Real GDP (Y) Against Growth (X) 2023 China Growth Drivers GDP (GDP B n n n 015 $USD) growth India Market-oriented Government Policies 7% hn n n m r f rm h x We are long term n n v encourage FDI and techn
Slide 23: Strong Government Support For The Economy
S r ng G v rnm n S r F r Th E n my China’s government has implemented a variety of measures to help shore up the economy Government support for the economy to drive demand China’s Property Market Sees A In November, China announced a USD1.4 trillion stimulus package over 5 years to Recovery spur con
Slide 24: China Environment: Market Segmentation
h n En r n r m ny y ng n h M M r S gm n Mass brands crushed by local champion (BYD), BBA are contested by Tesla/premium NEV players but are somewhat insulated Jan – July 2024 China Sales volume by all fuel type only (units, thousands) BMW Neue Klasse Luxury to Mass Near Premium Premium Premium to Lu
Slide 25: Sime Is Improving Our China Business
S m I Im r v ng O r h n B n Our action plans to improve our China earnings is well underway, so that as the economy recovers, we are in the best position to bounce back Our Mature Dealerships have been historically very profitable A. Strong Relationship With BMW B. Retail Optimisation and Profit Max
Slide 26: Overview Of The New Sime: Section 4
Overview Of The New Sime Continuous Demand for Commodities Section 3 Long-term bullish on China Section 4 Malaysian Automotive Leader Deep Intrinsic Value Copyright © 2024 Sime Darby Berhad 26
Slide 27: Malaysia: One of ASEAN's Most Important Automotive Markets
M y : On f ASEAN’ M Im r n A m v M r Another Record-Breaking Year For Malaysia TIV In 2024 For two consecutive years, Malaysia has surpassed Thailand to be the second largest automotive market in ASEAN with Sime Darby controlling 60% of market share. B B B EV B ng Fr P r h Malaysian market is import
Slide 28: Sime: A Malaysian Automotive Leader
Sm :AM y nA m v L r We control the full spectrum of segments from entry level to mass and premium to luxury with brands such as Perodua, Toyota, BMW & Porsche Entry Level Mid-market Luxury Super Luxury F v r y H gh-N - W r h In v F rm - g w hy r f n F v r ym - F v r yy ng f m r f n Jaguar F-Pace Por
Slide 29: Sime: Dominant In The Mass Market Segment
Sm :D mn n n h M M r S gm n Perodua & Toyota ensure a strong & continuous sales pipeline due to price positioning RM 65 – 90k Toyota dominates in the mid-market segment Toyota Yaris Proton X50 Nissan Almera Honda City Toyota Vios (RM88 ) (RM8 ) (RM84 ) (RM85 ) (RM90 ) T20 S ry RM11 v N fh h : 1.5m R
Slide 30: Toyota Is Resilient Against Chinese Brands
T y I R n T w r h n Br n Toyota is the best Japanese auto brand, and is holding up strongly against new China entrants due to its reliability, manufacturing capabilities, and hybrid offerings Toyota is able to outcompete Chinese cars for China OEMs are beating incumbent Japanese now, and we have a s
Slide 31: RON95 Subsidy Removal Drives Sales
RON95 S yR m v W Dr v S Sime is a key beneficiary of the subsidy removal through Perodua, Toyota and BYD Only customers m r m y BYD A r v S m y m r v w h Th y m y r S f r in v Hy r n r y 130% n - w h yr n n wn P r v h m y T15 category n T y h n 0 4. 5m . T15 v EV . v n r r n Hy r . will be affected
Slide 32: Perodua launches new EV
P r n h m n r v h n 0 5 Showcased eMO-II at KLIMS 2024 Th EV Pr w n I w h T EV r n nM y n 0 4 n h fin RM50 000 n h EV n 1. BYD 8 570 q r r f h y r. RM90 000. M y . . T 51 7 . BMW 1 975 4. MINI 7 5. Gr W M r 15 . m r 0 7. MG 59 8. V v 58 9. h ry 55 10. M r -B nz 49 11. P r h 405 1 . X ng 97 (D fr m J
Slide 33: Overview Of The New Sime: Section 5
Overview Of The New Sime Continuous Demand for Commodities Section 3 Long-term bullish on China Section 4 Malaysian Automotive Leader Section 5 Deep Intrinsic Value Copyright © 2024 Sime Darby Berhad 33
Slide 34: Valuation: Sum Of The Parts, Book Value And Dividend Yield
V n: S m Of Th P r B V Dv n Y Sime’s present share price is deeply undervalued on a book value and sum of the parts basis, taking into consideration the quality and breadth of our businesses A Sum Of The Parts B Book Value Analysis Ev n f r zero-rising Motors China h n r n v fSm still greater h n h
Slide 35: Investment Thesis: Strategic Growth and Value Proposition
In n n Strategic Growth and Value Proposition • Sm h v v w h r h r m r n r f wh h f r h r 1 Balanced Portfolio strengthened by our new strategic partnership with Toyota. • L ng h r h n q y f r r n w r proxy to the fast- 2 Regional Proxy growing Asia Pacific region n h benefit from high multiples fr
Slide 36: Thank You
Thank You Copyright © 2024 Sime Darby Berhad