Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — Q2 FY2024 Earnings Presentation
24 slides from Sime Darby Bhd's earnings presentation, Feb 21, 2024
Slide 1: Media & Analyst Briefing for the 1st Half & 2nd Quarter
Sime Darby Berhad Media & Analyst Briefing for the 1st Half & 2nd Quarter ended 31 December 2023 21 February 2024
Slide 2: Group Results
Sime Darby Berhad Group Results
Slide 3: FY2024 Financial Results: Reported Profit, Quarter
FY2024 Financial Results Reported Profit: Quarter ended 31 December 2023 Q2 FY2024 Q2 FY2023 YoY % Revenue 15,548 11,292 37.7 PBIT 590 405 45.7 Finance income 29 12 Finance costs (167) (68) Profit before tax 452 349 29.5 Taxation (140) (103) Profit from continuing operations 312 246 26.8 Perpetual s
Slide 4: FY2024 Financial Results: Core Profit, Quarter
FY2024 Financial Results Core Profit: Quarter ended 31 December 2023 In RM Million Q2 FY2024 Q2 FY2023 YoY % Reported PBIT from continuing operations 590 405 45.7 Adjustments: • Foreign exchange gain on settlement of net investments (12) (12) Core PBIT from continuing operations 578 393 47.1 Net fin
Slide 5: Segmental PBIT: Quarter
FY2024 Financial Results Segmental PBIT: Quarter ended 31 December 2023 Q2 FY2024 Q2 FY2023 Reported Core PBIT In RM Million PBIT Reported Core Reported YoY % YoY % Adjustments Adjustments Core PBIT PBIT PBIT PBIT Continuing operations Industrial 351 - 351 224 - 224 56.7 56.7 Motors 192 - 192 151 -
Slide 6: FY2024 Financial Results: Reported Profit, Half-year
FY2024 Financial Results Reported Profit: Half-year ended 31 December 2023 In RM Million 1H FY2024 1H FY2023 YoY % Revenue 29,528 23,474 25.8 PBIT 1,420 772 83.9 Finance income 56 23 Finance costs (296) (125) Profit before tax 1,180 670 76.1 Taxation (294) (200) Profit from continuing operations 886
Slide 7: FY2024 Financial Results: Core Profit, Half-year
FY2024 Financial Results Core Profit: Half-year ended 31 December 2023 In RM Million 1H FY2024 1H FY2023 YoY % Reported PBIT from continuing operations 1,420 772 83.9 Adjustments: • Gain on disposal of Malaysia Vision Valley (“MVV”) land (279) - • Foreign exchange gain on settlement of net investmen
Slide 8: Segmental PBIT: Half-year
FY2024 Financial Results Segmental PBIT: Half-year ended 31 December 2023 1H FY2024 1H FY2023 Reported Core PBIT In RM Million PBIT Reported Core Reported YoY % YoY % Adjustments Adjustments Core PBIT PBIT PBIT PBIT Continuing operations Industrial 709 - 709 440 - 440 61.1 61.1 Motors 395 - 395 327
Slide 9: PBIT from Continuing Operations
PBIT from Continuing Operations Half-year Core PBIT from continuing operations was 46.8% higher mainly due to higher profit from Industrial Australasia and Motors Malaysia Q2 FY2024 vs. Q2 FY2023 46 12 590 578 68 (29) 127 Q 405 393 T (12) D P B I T Q2 FY23 Net Q2 FY23 Industrial Motors UMW Corporate
Slide 10: Snapshot of borrowing position as at 31 December 2023
FY2024 Financial Results Snapshot of borrowing position as at 31 December 2023 Long Term vs Short Term Debt Total Debt 15,867 2,262 + 64% 4,899 9,677 2,134 512 2,054 462 RM 15.9bn 8,194 5,027 As at 31 December 2023 Sep 2023 Dec 2023 ST Borrowings ST Leases LT Borrowings LT Leases RM7.2bn RM23.6bn 0.
Slide 11: Industrial Division
Sime Industrial Division
Slide 12: Industrial Division: Strong performance from Australasia operations
Industrial Division Strong performance from the Australasia operations Australasia 22.6% 61.1% 9,744 • The higher profit in Australia was mainly attributed to higher product 709 support and mining equipment revenue. 7,946 • Onsite Rental (acquired in April 2023) contributed PBIT of RM80 million 440
Slide 13: Industrial Outlook
Industrial Outlook Order book mainly from mining projects in Australia AUSTRALASIA • Order backlog in Australia has declined due to strong mining deliveries in Q2 4,699 4,729 2024. However, order book remains healthy supported by demand for coal. 4,588 4,504 • Coal prices continued to edge up amid t
Slide 14: Industrial: Market Outlook
Industrial: Market Outlook Australian miners continue to spend on CAPEX. Acquisition of Cavpower and Onsite allows Sime Darby to capitalize on these trends. Export volumes projected to fall, but mining CAPEX on the rise Acquisition of Cavpower Resource commodities rose until As a result, Australian
Slide 15: Motors Division
Sime Motors Division
Slide 16: Motors Division: Strong performance in Malaysia
Motors Division Strong performance in Malaysia, partly offset by lower profit from the China operations Malaysia 21.3% 20.8% • The operations recorded higher profit mainly from the higher revenue in 18,803 general. 15,500 395 327 • Sime Darby Auto ConneXion and Sime Darby Auto Performance recorded h
Slide 17: Motors Outlook
Motors Outlook Slowing pace of electric vehicle growth coupled with anticipated implementation of new tax legislations raise significant concerns 69,340 21,701 Units sold Units Sold* Units Assembled by region (1H FY2023: 56,323) (1H FY2023: 14,289) * Includes cars sold on consignment MALAYSIA • Indu
Slide 18: Motors: Market Outlook
Motors: Market Outlook Strong performance in Malaysia, to buffer weakness in China market Record TIV In Malaysia Auto Sales Challenges in China China has admitted its electric-car drive has gone too far, Malaysia’s automotive sales in 2023 and said that the government will take “forceful measures to
Slide 19: Motors Outlook: New models coming
Motors Outlook Exciting new models coming out in the next 12 months BMW iX1 Mini Cooper MINI Electric Hong Kong/Macau – 2024 China – 2024 BYD Seal Volvo EX30 Malaysia –2024 Malaysia – 2024 18
Slide 20: UMW Holdings Berhad
Sime UMW Holdings Berhad
Slide 21: UMW Acquisition: Privatization & Delisting
UMW Acquisition: Privatization & Delisting Sime Darby secured 98.88% of UMW upon the close of the MGO, proceeding to fully privatize • Upon the close of the Mandatory General Offer (MGO) on 31 January 2024, Sime Darby has secured 98.88% of UMW shares and has successfully delisted UMW on 19th Februar
Slide 22: UMW Financials: ROIC and ROSF from 2019 to 2023
* UMW Financials: ROIC and ROSF from 2019 to 2023UA Robust growth of UWW Group’s financial performance in FY23 Mainly due to gain on disposal of property at Shah Alam (RM188m before RPGT of RM12m). Excluding the gain on sale of land to LONGi, Excluding the gain, (RM218m before tax, RM41m) ROIC = 7.9
Slide 23: UMW: Automotive Segment
UMW: Automotive Segment UMW Toyota Motor and Perodua sales & Total Industry Volume UMW Group 2019 2020 2021 2022 2023 UMW Toyota Motor 70,009 59,320 72,394 101,035 108,107 * Perodua 240,341 220,154 190,291 282,019 330,325 * TIV 604,281 529,514 508,883 721,177 799,731 * UMW Market Share 51.4% 52.8% 5
Slide 24: Thank You
Sime Thank You