Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — Investor Presentation (January 2020)
39 slides from Sime Darby Bhd's investor presentation, January 2020
Slide 1: Sime Darby Berhad Investor Presentation January 2020
SIME DARBY BERHAD Investor Presentation January 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 10 3. Motors Division 19 4. Logistics Division 28 5. Healthcare Division 32 6. Appendices 35 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 By Segment By Geography Debt/Equity: 37.02% 14,610 Logistics Others 409 1% 0%
Slide 8: FY2020 Financial Results
STRICTLY PRIVATE & CONFIDENTIAL FY2020 Financial Results Reported Profit: Quarter ended 30 September 2019 In RM Million Q1 FY2020 Q1 FY2019 YoY % Revenue 9,476 8,845 7.1 PBIT 380 352 8.0 Finance income 11 9 Finance costs (39) (30) Profit before tax 352 331 6.3 Taxation (93) (93) Profit after tax 259
Slide 9: FY2020 Financial Results: Core Profit
STRICTLY PRIVATE & CONFIDENTIAL FY2020 Financial Results Core Profit: Quarter ended 30 September 2019 In RM Million Q1 FY2020 Q1 FY2019 YoY % Reported PBIT 380 352 8.0 Adjustments • Fair value loss/(gain) on financial assets (MES) 4 (3) • Impairment of equity interest in E&O 16 35 • Gain on disposal
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: Industrial Division
STRICTLY PRIVATE & CONFIDENTIAL Industrial Division 10
Slide 12: Sime Darby Industrial
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 13: Sime Darby Industrial: Strong brands and market reach across APAC
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 14: Industrial Division
STRICTLY PRIVATE & CONFIDENTIAL Industrial Division Sales and profits increased in Australasia and China Australasia +24.3% +41.3% 3,996 260 • Higher equipment deliveries to both mining and construction sectors. 3,216 184 • Contribution from Hardchrome Sep 2019 – RM7m. • Results partly offset by the
Slide 15: Industrial Outlook
STRICTLY PRIVATE & CONFIDENTIAL Industrial Outlook Outlook remains positive AUSTRALASIA • Growth in mining industry in Asia Pacific region RM2,381m RM2,486m propelling demand for both mining equipment Order book as at +4% Order book as at replacement cycles and expansions. 30 June 2019 30 September
Slide 16: 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 17: 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 13,575 1,396 13,041 1,331 12,073 10,637 10,962 1,106 9,946 10,127 1,039 8,645 898 8,210 7,629 793 798 725 612 552 341 253 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY20
Slide 18: Revenue & PBIT by Region (1/2)
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Revenue & PBIT by Region (1/2) FY19 Sales Contribution & Products / Services Revenue (RM million) PBIT (RM million) YoY Orderbook FY19 Sales Contribution CAT New Equipment & Engines 10.5% 8.5% 5.2% 5.5% 3.9% 4.6% Malaysia, 8% 1,423 150 1,230 1,18
Slide 19: Revenue & PBIT by Region (2/2)
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Revenue & PBIT by Region (2/2) FY19 Sales Contribution & Products / Services Revenue (RM million) Core PBIT (RM million) YoY Orderbook FY19 Sales Contribution CAT New Equipment & 5.4% 4.7% 3.9% 3.5% 4.1% 4.9% Engines China / HK / Macau, 27% 188 3
Slide 20: Motors Division
STRICTLY PRIVATE & CONFIDENTIAL Motors Division 19
Slide 21: 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 22: We represent strong 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 23: Motors Division
STRICTLY PRIVATE & CONFIDENTIAL Motors Division Higher margins in China as a result of lower discounting China, HK, Macau, Taiwan -2.0% +27.6% 5,516 5,408 • Higher units of vehicles sold mainly from BMW China. 134 • Overall margin improved as a result of lower discounting, 105 higher margin contribu
Slide 24: Motors Outlook
STRICTLY PRIVATE & CONFIDENTIAL Motors Outlook New models in premium segment to spur growth despite challenging market environment 2,346 2,236 4,867 3,811 20,428 Units Sold (Q1 FY2019: 22,322) Units Sold Units Sold Q1 3,546 Q1 FY2019 FY2020 5,056 10,053 10,835 4,063 Units Assembled (Q1 FY2019: 10,25
Slide 25: 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 26: 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 27: Units Sold, Revenue & PBIT by Region (1/2)
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Units Sold, Revenue & PBIT by Region (1/2) FY19 Sales Contribution & Reported Revenue & PBIT Marques Units Sold Units Sold (RM miilion) 7.3% 4.7% 2.6% 6.2% 6.1% 6.3% Malaysia 31,230 333 223 247 Malaysia, 26,607 204 219 18% 87 18,571 17,663 Malaysia 4
Slide 28: Units Sold, Revenue & PBIT by Region (2/2)
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Units Sold, Revenue & PBIT by Region (2/2) FY19 Sales Contribution Reported Revenue & PBIT Marques Units Sold & Units Sold (RM miilion) 3.5% 1.6% 1.7% 2.7% 3.2% 2.3% China / HK / 43,537 Macau / Taiwan 250 231 277 235 33,915 34,29335,601 124 134 31,59
Slide 29: Logistics Division
STRICTLY PRIVATE & CONFIDENTIAL Logistics Division 28
Slide 30: 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 31: Sime Darby Logistics
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Logistics Excluding Weifang Water, Logistics recorded higher profit from higher bulk throughput -22.5% -93.3% 80 Ports 62 89 • Higher bulk cargo throughput at Weifang Port • Offset by higher share of loss from 6 associates and JVs of RM6m (Q1 FY2019 profit
Slide 32: 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 103 result of intense competition & 303 - 294 294 283 tighter environmental controls 66 28 by Jining authority 250 77 74 44 53 60 19 70 - 64 - 12 2 37 6
Slide 33: Healthcare Division
STRICTLY PRIVATE & CONFIDENTIAL Healthcare Division 32
Slide 34: 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 35: Ramsay Sime Darby Health Care
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 15 15 962 847 881 800 719 657 Healthcare PBIT Sep-18 Sep-19 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 In RM
Slide 36: Appendices
STRICTLY PRIVATE & CONFIDENTIAL Appendices 35
Slide 37: 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 38: 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 39: Thank You
STRICTLY PRIVATE & CONFIDENTIAL Thank You 38
Sime Darby Berhad — Investor Presentation (January 2020) on 6ix