Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — Q1 FY2018 Earnings Presentation
38 slides from Sime Darby Bhd's earnings presentation, Nov 16, 2017
Slide 1: FY2017/2018 Results Announcement First Quarter ended 30 September 2017
FY2017/2018 Results Announcement First Quarter ended 30 September 2017 16 November 2017
Slide 2: Sime Darby Pure Play Exercise
SIME DARBY PURE PLAY EXERCISE 2
Slide 3: Transaction Overview
Transaction Overview Existing Corporate Structure Corporate Structure Post Proposals Other UTFs Other UTFs ASB PNB EPF KWAP Others ASB PNB EPF KWAP Others (PNB) (PNB) 40.79% 6.15% 5.45% 11.12% 5.61% 30.88% 40.79% 6.15% 5.45% 11.12% 5.61% 30.88% Sime Same set of shareholders will Darby continue to ho
Slide 4: Milestones Following Actual Listing Submission
Milestones Following Actual Listing Submission Assuming Listing by End November (EGM on 20 November 2017) 24 Aug 26 Oct 3 Nov 4 Nov 20 Nov Target Thu Thu Fri Sat Mon End Nov • Listing • The approval • Securities • Announcement • Issuance from the Commission of notice of of Board of Sime (SC)’s and S
Slide 5: The Listing Reference Price
The Listing Reference Price The listing reference price of the Identified Entities shall fall within the percentage allocation range stated below, which represents the percentage to be applied to the closing price of Sime Darby’s shares on the last day of cum entitlement trading. Share price of RM9.
Slide 6: Sime Darby Berhad
Sime SIME DARBY BERHAD
Slide 7: Sime Darby Berhad Financial Highlights
Sime Darby Berhad Financial Highlights First Quarter of FY2018 RM’mn 1Q FY2018 1Q FY2017 % YoY Change Continuing Operations Revenue 8,144 6,934 +18% PBIT 356 263 +35% PBT 376 312 +21% PATAMI 248 216 +15% Basic EPS (RM sen) 3.6 3.4 +6% Discontinuing Operations PBIT 1,249 517 +142% PATAMI 1,068 306 +2
Slide 8: Snapshot of Borrowings Position
Snapshot of Borrowings Position Sime Darby Berhad as at 30 September 2017 Long term RM15.5bn borrowings Total Equity¹ 20% RM2.8bn 18% Total Borrowings Debt/Equity Ratio As at 30 Sep’17 RM1.9bn Short term borrowings Bank balances, 80% deposits and cash ¹ Proforma for continuing operations 8
Slide 9: Industrial Division
Industrial Division Improving Business Conditions and Disposal Gains 1Q FY2018 External RM2,948mn (36% YoY) Revenue 1QFY17: RM2,164mn PBIT RM247mn (384% YoY) 1QFY17: RM51mn RM21mn, 40% YoY (1QFY17: RM15mn) Malaysia • Gain on land disposal of RM9mn RM-6mn, <-100% YoY (1QFY17: RM-2mn) Singapore • Due
Slide 10: Industrial Division Outlook
Industrial Division Outlook in Australasia, Malaysia, China and Singapore AUSTRALASIA CHINA • Upswing in demand for coal • Increased demand from the and other minerals construction sector previously • Increased demand for mining put on hold due to lack of and construction equipment funding and parts
Slide 11: Motors Division
Motors Division Improvements in Malaysia, China/HK and NZ 1Q FY2018 External RM5,106mn (+9% YoY) Revenue 1QFY17: RM4,689mn PBIT RM112mn (-14% YoY) 1QFY17: RM130mn RM37mn, +85% YoY (1QFY17: RM20mn) Malaysia • Improved profit from vehicle sales and assembly business RM-42mn, <-100% YoY (1QFY17: RM32mn
Slide 12: Motors Division Key Highlights and Outlook
Motors Division Key Highlights in 1QFY18 and Outlook Units Sold in 1QFY18 Upcoming New Launches in 2QFY18 20,308 +0.5% YoY BMW X3 BMW M5 Driven by higher number of units sold in Singapore, Thailand, Malaysia, Hong Kong and Taiwan Hyundai Tucson Premium 4WD Land Rover Discovery Outlook In Key Markets
Slide 13: Logistics Division & Other Businesses
Logistics Division & Other Businesses Driven By Increased Port Throughput and Higher Profit from Healthcare 1Q FY2018 LOGISTICS OTHER BUSINESSES External RM83mn (+19% YoY) External RM7mn (-36% YoY) Revenue 1QFY17: RM70mn Revenue 1QFY17: RM11mn1 PBIT RM18mn (+50% YoY) PBIT RM12mn (-70% YoY) 1QFY17: R
Slide 14: Sime Darby Plantation
Sime SIME DARBY PLANTATION 14
Slide 15: Sime Darby Plantation Financial Highlights
Sime Darby Plantation Financial Highlights Stellar Performance in 1Q FY2018 in RM’mn 1Q FY2018 1Q FY2017 YoY % Revenue 3,541 2,819 +26% Operating Profit 1,281 344 +272% One-offs1: RM771mn PBIT 1,284 329 +290% PBT 1,239 227 +446% PATAMI 1,019 151 +575% Basic EPS (RM sen) 169.8 25.2 +574% Proforma Bas
Slide 16: Snapshot of Borrowings & Cash
Snapshot of Borrowings & Cash Improved Debt/Equity Ratio and Cash Balances as at 30 Sep 2017 Total Borrowings Total Equity Gross Debt/Equity Ratio (RM'mn) RM15,958mn -10% QoQ (+6% QoQ) -5% 30 June 2017: RM15,123mn 9,300 QoQ 8,815 17% 61% 12% 55% 14% 19% As at 30 Jun As at 30 Sep Bank Balances & Cash
Slide 17: Financial Performance
Financial Performance Strong Contribution from Upstream Operations in 1QFY2018 1Q FY2018 External RM3,541mn (+26% YoY) Revenue 1QFY17: RM2,819mn PBIT RM1,284mn (+290% YoY) 1QFY17: RM329mn • PBIT excluding FFB 2.70mn MT, +25% YoY RM1,208mn one-offs: production (1QFY17: 2.15mn MT) +359% YoY RM437mn, U
Slide 18: Upstream
Upstream High Profit Contributions from Malaysia, Indonesia and PNG Rise in core Upstream PBIT by +66% YoY due to higher FFB production and CPO price realised Malaysia Indonesia PNG Liberia* Group 172% 217% 92% 39% 66% 117 38 305 43 -12 -23 437 220 12 263 1QFY2017 305 1QFY2018 1QFY2017 1QFY2018 1QFY
Slide 19: Strategic Initiatives
Strategic Initiatives Focused Execution Remains Paramount WATER MANAGEMENT MECHANISATION DOWNSTREAM Mitigating El Nino and La Nina: Addressing human capital Continuous efforts to manage Efficient water challenges: cost and improve margins: management system • In the near and long term • Increase • I
Slide 20: Sime Darby Property
Sime SIME DARBY PROPERTY 20
Slide 21: Sime Darby Property: Largest Land Bank in Malaysia
Sime Darby Property An Established Property Developer with the Largest Land Bank in M’sia 20,763 acres Integrated Townships development Landbank HSR Hubs Remaining Developable Land Bank Georgetown 12,026 acres located within our existing 23 Pulau Tikus MALAYSIA active townships, integrated and nic
Slide 22: Strategic Land Bank in Key Growth Areas and Economic Corridors
Sime Darby Property Strategic Land Bank in Key Growth Areas and Economic Corridors C U R R E N T A D D I T I O N Our current and SDP’s exposure in Malaysia Vision Valley upcoming 3,196 acres – identified for Phase 1 Development Legend developments (An additional 8,793 acres via the MVV Option SDP’s
Slide 23: Sime Darby Property Financial Highlights
Sime Darby Property Financial Highlights First Quarter Ended 30 September 2017 RM’mn 1Q FY2018 1Q FY2017 % YoY Change Continuing Operations Revenue 464 444 +4% PBIT 420 184 +129% PBT 419 173 +142% PATAMI 421 136 +209% Basic EPS (RM sen) 42 14 +209% Discontinuing Operations PBIT1 2 0 >+100% PATAMI 1
Slide 24: Higher Battersea Contribution & Better Earnings From Key Townships
Sime Darby Property Financial Highlights Higher Battersea Contribution & Better Earnings From Key Townships RM’mn 1Q FY2018 Continuing Operations External RM464mn (+4% YoY) Revenue 1QFY17: RM444mn Segment RM101mn (+87% YoY) Results 1QFY17: RM54mn Property RM115mn • Share of profit of RM87mn from Bat
Slide 25: Financial Position as at 30 September 2017
Financial Position as at 30 September 2017 Committed Towards Maintaining Optimal Capital Structure Capital Structure Total Borrowings RM7,150mn Short-term Borrowings 15% 21% Debt/Equity Ratio RM1,100mn Total Borrowings RM1,100mn RM1,048mn Long-term Equity Debt Bank balances, Borrowings deposits and
Slide 26: 1Q FY2018 Key Highlights
1Q FY2018 Key Highlights Gross Sales Value 1QFY18: RM528mn (vs 1QFY17: RM639mn) Unbilled Sales (As at 30 Sep’17) RM1,778mn (As at 30 Jun’17 : RM1,766mn) Units Sold 1QFY18 : 667 units RM87mn Recognition of profit in 1QFY18 upon handover of 431 units of Circus West (Phase 1) (vs 1QFY17 : 435 units) Re
Slide 27: Projects Launched in July - October 2017
Projects Launched in July - October 2017 T o w n s h i p D e v e l o p m e n t Casira 2, Bandar Bukit Raja Elmina Green 1, Elmina West Tara, Bukit Jelutong Double Storey Link House Double Storey Link House 2 & 3 Storey Semi Detached House Launched Date : July 2017 Launched Date : Oct 2017 Launched D
Slide 28: Upcoming Major Launches in FY2018
Upcoming Major Launches in FY2018 Township Development Liana, Elmina Gardens Ferrea, Denai Alam A2, Serenia City Double Storey 30’ x 70’ Superlink House Double Storey Link House Double Storey Link House Target Launch : 18 & 19 Nov Target Launch : 1HCY18 Target Launch : CY18 2017 @ Elmina Pavilion No
Slide 29: Disclaimer
Disclaimer This presentation may contain forward-looking statements by Sime Darby Berhad that reflect management’s current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptio
Slide 30: Thank You
THANK YOU SIME DARBY INVESTOR RELATIONS investor.relations@simedarby.com +(603) 2691 4122 http://www.simedarby.com/Overview.aspx 30
Slide 31: Appendices
Sime APPENDICES 31
Slide 32: Breakdown of External Revenue By Regions
Sime Darby Berhad Breakdown of External Revenue By Regions In RM’mn 1QFY2018 1QFY2017 YoY % Industrial Malaysia 285 322 -11% SE Asia ex Malaysia 156 129 21% China/HK 775 486 59% Australasia 1,732 1,227 41% 2,948 2,164 36% Motors Malaysia 882 725 22% SE Asia ex Malaysia 1,357 1,219 11% China/HK/Macau
Slide 33: Plantation Breakdown of External Revenue and PBIT by Segment
Sime Darby Plantation Breakdown of External Revenue and PBIT by Segment In RM'mn 1QFY2018 1QFY2017 YoY % Upstream Group 782 600 30% Upstream Malaysia 322 172 87% Upstream Indonesia 38 117 -68% Upstream PNG 412 308 34% Upstream Liberia 10 3 233% Downstream 2,743 2,203 25% Others 16 16 0% TOTAL EXTERN
Slide 34: Summary of Operational Statistics
Sime Darby Plantation Summary of Operational Statistics as at 30 September 2017 Malaysia Indonesia PNG Liberia Group YoY YoY YoY YoY YoY 30 30 % 30 30 % 30 30 % 30 30 % 30 30 % Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep ’17 ’16 ’17 ’16 ’17 ’16 ’17 ’16 ’17 ’16 FFB Production 1.55 1.26 +23% 0.72 0.57 +26
Slide 35: Upstream Geographical Coverage
Sime Darby Plantation Upstream Geographical Coverage as at 30 September 2017 Sabah Sarawak Planted : 46,375 ha Planted : 38,894 ha Landbank : 53,796 ha Landbank : 47,280 ha Sulawesi Planted : 3,952 ha Kalimantan Landbank : 4,712 ha Planted : 129,229 ha Landbank : 175,133 ha Sumatera Planted : 70,778
Slide 36: Oil Palm Age Profile
Sime Darby Plantation Oil Palm Age Profile as at 30 September 2017 MALAYSIA INDONESIA GROUP 8% 7% 7% 17% 20% 17% 18% 24% 12.6 yrs 20% 14.3 yrs 9% 39% Average Palm Average Palm Tree Age Tree Age 12.9 yrs 18% Average Palm Tree Age 37% 25% 34% LIBERIA PNG 5% 10% 12% 12% Sime Darby has 602,452 ha of oil
Slide 37: Property Breakdown of External Revenue and PBIT By Segment
Sime Darby Property Breakdown of External Revenue and PBIT By Segment EXTERNAL REVENUE In RM'mn 1QFY2018 1QFY2017 YoY % Continuing Operations Property Development 424 398 7% Property Investment 12 17 -29% Leisure and Hospitality 28 29 -3% Sub-total 464 444 4% Discontinuing Operation 9 13 -33% Total
Slide 38: Remaining Developable Land Bank as at Oct 2017
Sime Darby Property Remaining Developable Land Bank as at 31 Oct 2017 ~12k acres of remaining developable land bank with a remaining GDV of RM85.9bn Township/Development Name Year Total Area Remaining Remaining Remaining Commenced (acres) Developable GDV Development Area (acres) (RM bil) Period (yea