United Overseas Bank Limited · SGX:U11
United Overseas Bank — Investor Presentation (October 2020)
17 slides from United Overseas Bank's investor presentation, Oct 13, 2020
Slide 1: Outlook of Petroleum Retail Landscape in Malaysia
Outlook of Petroleum Retail Landscape in Malaysia Survey Insights Preliminary Findings 13th October 2020 Disclaimer: This material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation. It is information given in summary
Slide 2: Profile of respondents and key highlights
Profile of respondents PETROL SAMPLE SIZE DEALERSHIP MODEL Key highlights 130 Total no. respondents surveyed across Malaysia 89% Company-owned, Dealer-operated (CODO) 11% Dealer-owned, Dealer-operated (DODO) 1. Top threats to retail fueling in 3–5 years are: (a) floating of retail fuel prices/ uncer
Slide 3: Top threats to retail dealers in the next 3–5 years
Top threats to retail dealers in the next 3 – 5 years Floating Floating ofofretail retailfuel fuelprices prices 68% Key Uncertain Uncertain governmentgovtregulations regulations 42% takeaways Floating of retail fuel prices/uncertain Poor economic Poor economiccondition condition 40% government regul
Slide 4: Fuel sales is very key for dealers' revenue and profitability
Fuel sales is very key for dealers’ revenue and profitability Split of revenue between Split of profit margins fuel and retail sales between fuel and retail sales Key takeaways 57% -57% 80% : 20% 42% Two key issues Floating of retail fuel prices and EVs are 24% -24% 70% : 30% 25% important to dealer
Slide 5: Views on whether government will float refined fuel prices?
Views on whether government will float refined fuel prices? Under the Automatic Pricing Mechanism (APM), dealers can earn RM 15sen/litres of gasoline and RM The previous government signaled intentions 10sen/litres of diesel sold. to float fuel prices. This suggests the removal of guaranteed margins
Slide 6: Top services currently available at fuel retail stations
Top 10 services currently available at fuel retail stations Convenience Store Convenience Store 93% Wi-Fi WiFi 28% Key Café/Fast Food food Banking Agent/ATM/Digital Payment 10% 13% takeaways Car wash 24 8% Convenience stores Lube bay 7% Presence of convenience stores at retail stations stand out as
Slide 7: New services dealers would like to add at their retail stations
New services dealers would like to add at their retail stations in the next few years High start-up costs Adoption of new age themes Other services 24 Open 54% Dealers show a desire to High start-up costs adopt e-commerce, digital and climate change themes 25% 20% 17% 10% 10% 8% 7% Café/Fast food EV
Slide 8: Growth of EVs is a future that dealers have to prepare for
Growth of EVs is a future that dealers have to prepare for More EVs are expected on the Proton is likely to benefit from Therefore to balance fuel sales, roads as auto manufacturers EV development from holding more than half of the respondents prioritise their investment company, Geely and Volvo are
Slide 9: Post COVID-19, equip dealers with skills to exploit the digital economy
Post COVID-19, ever more important to equip dealers with skills to exploit the digital economy 34% who used technology tools for 12% who used technology tools The respondents are split on marketing were mainly on social to track customers’ spending & whether ride hailing services media platforms suc
Slide 10: Moving towards low carbon stations in the future
Moving towards low carbon stations in the future There is a global trend towards % respondents who currently a lower or carbon neutral have solar panels installed stations in the future to Out of those who indicated improve corporate/brand No they do not have solar panels image to consumers 83% inst
Slide 11: Conclusion
Conclusion • The survey has been very useful in drawing out retail dealers’ views on the fuel retailing industry (as shown in key highlights on slide #2). • Knowing the retail dealers’ views can help PDAM to stay relevant to your members. For example, PDAM could organise activities to address member
Slide 12: Next steps
Next steps • Update some of the survey questions to better reflect post COVID-19 concerns. • PDAM could use the updated survey to assess your members’ financial health, whether their immediate need is on working capital or expansion capital? • Has digital marketing skills or digital payment systems
Slide 13: Disclaimer
Disclaimer This publication is strictly for informational purposes only and shall not be transmitted, disclosed, copied or relied upon by any person for whatever purpose, and is also not intended for distribution to, or use by, any person in any country where such distribution or use would be contra
Slide 14: Thank You
Thank You fi UOB RIGHT BY YOU (#4
Slide 15: Fuel pricing regime in Malaysia
Fuel pricing regime in Malaysia RON 95 and Diesel prices are on a managed float system 3.2 140 US$/bbl MYR/litre 3.0 120 2.8 2.6 100 2.4 80 2.2 60 2.0 1.8 40 1.6 20 1.4 Ron 95 Ron 97 Diesel Brent (RHS) 1.2 0 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 M
Slide 16: Retail fuel prices based on Automatic Pricing Mechanism (APM)
Retail fuel prices based on Automatic Pricing Mechanism (APM) APM Components Definition Determinants (A) Product Cost Based on Mean of Platts Singapore (MOPS), an index used to compute the daily average of Variable, based on MOPS transactions of downstream petroleum products. MOPS is correlated to o
Slide 17: Apple mobility data as proxy to road fuel demand
Apple mobility data as proxy to road fuel demand Kuala Lumpur Johor Bahru 17
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