Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — Q2 FY2023 Earnings Presentation
21 slides from Sime Darby Bhd's earnings presentation, February 2023
Slide 1: 1H and Q2 FY2023 Results Announcement
1H and Q2 FY2023 Results Announcement Analyst Briefing: First Half and Q2 ended 31 December 2022 February 2023
Slide 2: Sime Darby Berhad Group Results
Sime Darby Berhad Group Results 1
Slide 3: FY2023 Financial Results: Reported Profit Q2
FY2023 Financial Results Reported Profit: Quarter ended 31 December 2022 In RM Million Q2 FY2023 Q2 FY2022 YoY % Revenue 11,292 10,492 7.6 PBIT 421 494 (14.8) Finance income 12 8 Finance costs (68) (33) Profit before tax 365 469 (22.2) Taxation (103) (109) Profit from continuing operations 262 360 (
Slide 4: FY2023 Financial Results: Core Profit Q2
FY2023 Financial Results Core Profit: Quarter ended 31 December 2022 In RM Million Q2 FY2023 Q2 FY2022 YoY % Reported PBIT from continuing operations 421 494 (14.8) Adjustment: • Forex gain on settlement of net investment (12) - Core PBIT from continuing operations 409 494 (17.2) Net finance costs (
Slide 5: Segmental PBIT: Quarter ended December 2022
FY2023 Financial Results Segmental PBIT: Quarter ended 31 December 2022 Q2 FY2023 Q2 FY2022 Reported Core PBIT In RM Million PBIT Reported Core Reported Core YoY % YoY % Adjustments Adjustments PBIT PBIT PBIT PBIT Continuing operations Industrial 224 - 224 213 - 213 5.2 5.2 Motors 151 - 151 284 - 28
Slide 6: Reported Profit: Half-year ended December 2022
FY2023 Financial Results Reported Profit: Half-year ended 31 December 2022 In RM Million 1H FY2023 1H FY2022 YoY % Revenue 23,474 21,127 11.1 PBIT 807 885 (8.8) Finance income 23 19 Finance costs (125) (66) Profit before tax 705 838 (15.9) Taxation (200) (215) Profit from continuing operations 505 6
Slide 7: Core Profit: Half-year ended December 2022
FY2023 Financial Results Core Profit: Half-year ended 31 December 2022 In RM Million 1H FY2023 1H FY2022 YoY % Reported PBIT from continuing operations 807 885 (8.8) Adjustment: • Forex gain on settlement of net investment (12) - Core PBIT from continuing operations 795 885 (10.2) Net finance costs
Slide 8: Segmental PBIT: Half-year ended December 2022
FY2023 Financial Results Segmental PBIT: Half-year ended 31 December 2022 1H FY2023 1H FY2022 Reported Core PBIT In RM Million PBIT Reported Core Reported Core YoY % YoY % Adjustments Adjustments PBIT PBIT PBIT PBIT Continuing operations Industrial 440 - 440 373 - 373 18.0 18.0 Motors 327 - 327 511
Slide 9: Year on Year Reported PBIT Comparison
Year on Year Reported PBIT Comparison One-off gain on disposal of the Weifang Port Companies, but offset by lower profit from Motors China Q2 FY2023 vs. Q2 FY2022 551 503 11 Q 121 2 133 12 37 P B I T Q2 FY22 Industrial Motors Healthcare/ Forex on Discontinued Q2 FY23 Reported Others IG loan operatio
Slide 10: Regional breakdown as of December 2022
Regional breakdown as of December 2022 Our geographical spread across the Asia Pacific region broadens our earnings base Revenue Breakdown Core PBIT Breakdown China, 17% Australasia, 36% China, 37% SEA, 8% Australasia, 59% Malaysia, Malaysia, 16% 15% SEA, 12% China SEA Malaysia Australasia China SEA
Slide 11: Snapshot of borrowing position as of December 2022
FY2023 Financial Results Snapshot of borrowing position as of December 2022 Long Term vs Short Term Debt Total Debt + 16% 5,852 5,029 1,691 LT Debt: 1,938 LT Debt: 1,657 247 2,033 411 376 389 ST Debt: ST Debt: 3,503 3,914 2,996 2,607 RM 5.8bn Jun 2022 Dec 2022 As at December 2022 ST Borrowings ST Le
Slide 12: Segmental Results
Sime Segmental Results 11
Slide 13: Industrial Division
Industrial Division Results were supported by the higher contribution from Australasia Australasia 6.1% 18.0% • Higher profits driven by stronger parts sales from 7,488 7,946 440 Australia. 373 • Salmon Earthmoving (acquired on 1 October 2021) benefited from favorable weather leading to higher Dec-2
Slide 14: Industrial Outlook
Industrial Outlook Strong order book attributed to the mining and construction sectors in Australia AUSTRALASIA • Solid order book to drive the sales of equipment and product RM4,235m RM4,739m support in Australia. Order book as at +11.9% Order book as at 30 September 2022 • China has recently relax
Slide 15: Industrial Drivers: Australasia
Industrial Drivers: Australasia Strong MET coal prices in Q4; Positive turning point to China- Australia trade Commodity prices held up well Easing trade between China & Australia Coking Coal Newcastle Thermal Coal Brent Crude Oil China removes ban on Australian coal @ Feb 23’: @ Feb 23: @ Feb 23: U
Slide 16: Motors Division
Motors Division Profit was lower predominantly due to lower vehicle margins in Mainland China 13.9% China 15,500 13,611 36.0% • Profit declined despite higher revenue largely due to 511 lower vehicle margins in Mainland China. 327 Dec-21 Singapore & Thailand Dec-22 • Singapore – Improvement in BMW v
Slide 17: Motors Outlook
Motors Outlook Sales volume held up well but concerns relating to low vehicle margins remain. 56,323 14,289 Units Sold* Units Assembled Units sold by region (1H FY2022: 50,032) (1H FY2022: 11,360) * Includes used cars sold on consignment CHINA • Sales likely to be impacted by the changes in consumer
Slide 18: China market outlook and EV Opportunities
China market outlook and EV Opportunities Embracing the reopening trade in China; Well positioned for growing EV adoption Bullish on China’s re-opening Strong start to BYD Malaysia Chinese consumer confidence to gradually recover Successful launch of BYD Atto 3 Earnings expected to “normalise” in 20
Slide 19: Motors Outlook: Exciting new models in 2023
Motors Outlook Exciting new models in 2023 BYD- Seal BMW XM Malaysia – 2023 Malaysia – 2023 J L R - 5 th G e n e r a t i o n L 6 4 0 BMW 5 Series G60 Malaysia –2023 M a l a y s i a / C h i n a – 2 0 2 318
Slide 20: Healthcare
Healthcare Higher share of profits from RSDH due to higher revenue from Malaysia Joint Venture with Ramsay Healthcare Financials (1H FY23) 45.8% 35 24 50% 50% PBIT Dec-21 Dec-22 In RM Million 1H FY2022 1H FY2023 PBIT 24 35 ▪ Joint venture with Ramsay Health Care Annualised ROIC 7.0% 9.7% since FY201
Slide 21: Thank you
Sime Thank you