Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — FY2017 Earnings Presentation
27 slides from Sime Darby Bhd's earnings presentation, Aug 25, 2017
Slide 1: FY2016/2017 Results Announcement
FY2016/2017 Results Announcement Financial Year ended 30 June 2017 25th August 2017
Slide 2: FY2017 Results vs Headline KPI Targets
FY2017 Results vs FY2017 Headline KPI Targets Net Profit RM2.44bn Exceeded by 11% vs KPI Target of RM2.20bn Return on Avg. Shareholders’ Equity 7.0% Higher by 0.6% points vs KPI Target of 6.4% 2
Slide 3: Fourth Quarter ended 30 June 2017
Fourth Quarter ended 30 June 2017 RM million 4QFY2017 4QFY2016 YoY Change Before Before Impairments As As As impairments & impairments provisions & provisions Reported Reported Reported & provisions Continuing Operations Revenue 8,200 7,728 6% - PBIT 362 294 68 274 -75% +32% PBT 392 294 98 318 -69%
Slide 4: Financial Year ended 30 June 2017
Financial Year ended 30 June 2017 RM million FY2017 FY2016 YoY Change Before Before Impairments As As As impairments & impairments provisions & provisions Reported Reported Reported & provisions Continuing Operations Revenue - - 31,087 29,452 6% - PBIT 1,078 294 784 943 -17% +14% PBT 1,301 294 1,007
Slide 5: Major Impairments & Provisions in FY2017
Major Impairments & Provisions in FY2017 PLANTATION a) Impairment of assets of RM202mn • Commenced planting in 2011 • As at 30 Jun’17, planted 10,401 ha of oil palm (9,305 ha mature) and 107 ha of rubber a) Liberia • The operation in Liberia was slower-than-expected: • Setback due to the Ebola outbr
Slide 6: Snapshot of Borrowings Position
Snapshot of Borrowings Position Total Borrowings (FY2015 – FY2017) Total: RM13,054mn -18% YoY RM3,194mn Sime Darby Berhad Property RM18,063mn RM2,083mn RM15,833mn Plantation RM7,777mn 30 Jun'15 30 Jun'16 30 Jun'17 Debt/Equity 58% 44% 32% Ratio Bank balances, RM4,201mn RM3,521mn RM2,071mn deposits &
Slide 7: Plantation Division
Plantation Division 4QFY2017 FY2017 External RM3,994mn (+29% YoY) RM14,765mn (+24% YoY) Revenue 4QFY16: RM3,098mn FY16: RM11,877mn PBIT RM352mn (-30% YoY) RM1,977mn (+92% YoY) 4QFY16: RM502mn FY16:RM1,031mn Upstream RM440mn, +4% YoY RM1,905mn, +142% YoY & Others (4QFY16: RM423mn) (FY16: RM788mn) FFB
Slide 8: Plantation Division
Plantation Division FFB Production (Mn MT) FY16 FY17 9.62 9.78 • The increase in FFB production was due 5.26 5.29 2.75 2.67 to recovery from the impact of El Nino 1.62 1.79 M'sia Indo PNG/SI Total FFB Yield (MT/ha) Replanting and New Planting in FY17 FY16 21.9 23.9 • Total replanting in FY17: 29,555
Slide 9: Property Division
Property Division 4QFY2017 FY2017 External RM750mn (-41% YoY) RM2,193mn (-31% YoY) Revenue 4QFY16: RM1,268mn FY16: RM3,163mn PBIT RM413mn (-16% YoY) RM801mn (-32% YoY) 4QFY16: RM493mn FY16: RM1,179mn Property RM278mn, -35% YoY RM572mn, -20% YoY Development (4QFY16: RM425mn) (FY16: RM712mn) One-offs:
Slide 10: Property Division
Property Division Key Operational Highlights Challenges in FY2017 1,765 units RM1.67bn • Weak economy affecting consumer appetite Total Units Sold, Unbilled Sales, for the housing market -7% YoY +28% YoY as at 30 Jun’17 (FY16: 1,895 units) (30 Jun’16: RM1.30bn) • Soft demand for the high-end market,
Slide 11: Motors Division
Motors Division 4QFY2017 FY2017 External RM5,440mn (+7% YoY) RM20,602mn (+8% YoY) Revenue 4QFY16: RM5,072mn FY16: RM19,155mn PBIT RM241mn (+22% YoY) RM633mn (+26% YoY) 4QFY16: RM198mn FY16: RM503mn Malaysia RM154mn, +156% YoY RM223mn, +156% YoY (4QFY16: RM60mn) (FY16: RM87mn) • Higher contributions
Slide 12: Motors Division
Motors Division New Models Launched in 4QFY17 Units sold in FY2017 All New BMW 5-Series BMW 7-Series (740Le) 83,974 April & July 2017 April 2017 China & Malaysia Malaysia (+1% YoY) Units sold in 4QFY17 20,990 Porsche 911 Carrera June 2017 Malaysia (-4% YoY) Key Highlights Addition of 2 new marques –
Slide 13: Industrial Division
Industrial Division 4QFY2017 FY2017 External RM2,882mn (+6% YoY) RM10,127mn (+2% YoY) Revenue 4QFY16: RM2,729mn FY16: RM9,946mn PBIT RM-192mn (-249% YoY) RM-4mn (-101% YoY) 4QFY16: RM129mn FY16: RM341mn Malaysia RM9mn, -57% YoY RM60mn, +15% YoY (4QFY16: RM21mn) (FY16: RM52mn) • Mainly due to the rec
Slide 14: Industrial Division
Industrial Division Order book as at 30 Jun’17 AUSTRALASIA • Mining activities gain momentum RM1.47 billion, +23% YoY • Positive demand in equipment sales, product support services & rental business Xinjiang CHINA/HONG KONG CHINA/HK • Continue to expand market share driven by RM408mn • Hunan increas
Slide 15: Logistics Division
Logistics Division 4QFY2017 FY2017 External RM81mn (+5% YoY) RM303mn (+3% YoY) Revenue 4QFY16: RM77mn FY2016: RM294mn PBIT RM28mn (-18% YoY) RM64mn (-38% YoY) 4QFY16: RM34mn FY2016: RM103mn Weifang and RM22mn, -21% YoY RM41mn, -45% YoY Jining Ports (4QFY16: RM28mn) (FY2016: RM75mn) • Lower throughpu
Slide 16: Logistics Division
Logistics Division Updates on the development of Sime Darby Weifang Port A) LIQUID TERMINAL The Joint Venture with • The overall construction has completed Dragon Crown Group • To provide storage and usage of terminal facilities for bulk Holdings Ltd to co- oil and chemicals at the port develop the
Slide 17: Other Businesses
Other Businesses 4QFY2017 FY2017 External RM21mn (+17% YoY) RM55mn (-4% YoY) Revenue 4QFY16: RM18mn FY2016: RM57mn PBIT RM40mn (+208% YoY) RM78mn (+239% YoY) 4QFY16: RM13mn FY2016: RM23mn Ramsay Sime RM8mn, +33% YoY RM36mn, +33% YoY Darby Health (4QFY16: RM6mn) (FY2016: RM27mn) Care • Increase in bo
Slide 18: Update on the Listing of Pure-plays
Update on the Listing of Pure-plays 25th August 2017
Slide 19: Transaction Overview (1/2)
Transaction Overview (1/2) Existing Corporate Structure Steps to be Undertaken 1 The Proposed Internal Restructuring, comprising of: ASB PNB EPF KWAP Others Restructuring of borrowings (Completed) Transfer of assets within the Group (On-going) 41.83% 5.05% 10.53%(1) 5.88%(1) 36.71% Settlement
Slide 20: Transaction Overview (2/2)
Transaction Overview (2/2) Intended Corporate Structure Post Proposals Steps to be Undertaken 4 The Proposed Listing: ASB PNB EPF KWAP Others • Approvals: a) Approval from Securities Commission for the 41.83% 5.05% 10.53%(1) 5.88%(1) 36.71% listing on the Main Market of Bursa Securities for Sime Dar
Slide 21: Rationale and Benefits
Rationale and Benefits 1 • Optimal capital structure for all Listed Entities Better focus on • Tailored capital management initiatives capital management and • Customised strategies such as dividend policies, growth strategies growth strategies and investor relations strategies The Proposals are • E
Slide 22: Tentative Timeline
Tentative Timeline The listing of Pure Plays on track for completion by end of 2017 MARC affirmed rating of Current AAA, with stable outlook progress for SD Plantation on 26 May 2017 SD Plantation achieved ratings of Baa1 and BBB+ Announcement by Moody’s and Fitch of the Announcement Ratings respect
Slide 23: Disclaimer
Disclaimer This presentation does not constitute and is not an offer to sell or the solicitation of an offer to buy securities of any company referred to in this presentation in the United States or elsewhere. The companies referred to herein have not registered and do not intend to register any sec
Slide 24: Thank You
Thank You SIME DARBY INVESTOR RELATIONS investor.relations@simedarby.com +(603) 2691 4122 http://www.simedarby.com/Overview.aspx 24
Slide 25: Appendix: Breakdown of External Revenue
Appendix: Breakdown of External Revenue In RM’mn 4QFY17 4QFY16 % FY17 FY16 % Continuing Operations Motors Malaysia 1,028 975 5% 3,573 3,385 6% SE Asia ex Malaysia 1,252 1,224 2% 5,026 4,516 11% China/HK 2,219 1,989 12% 8,549 7,984 7% Australasia/NZ 941 884 6% 3,454 3,270 6% 5,440 5,072 7% 20,602 19,
Slide 26: Appendix: Breakdown of PBIT
Appendix: Breakdown of PBIT In RM’mn 4QFY17 4QFY16 % FY2017 FY2016 % Continuing Operations Motors Malaysia 154 60 157% 223 87 156% SE Asia ex Malaysia -26 53 -149% 75 192 -61% China/HK 75 45 67% 231 134 72% Australasia/NZ 38 40 -5% 104 90 16% 241 198 22% 633 503 26% Industrial Malaysia 9 21 -57% 60
Slide 27: Appendix: Plantation Operational Statistics
Appendix: Plantation Operational Statistics Malaysia Indonesia NBPOL Liberia* Group FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FFB Production (mn MT) 5.29 5.26 2.67 2.75 1.79 1.62 27,038 2,665 9.78 9.62 FFB Yield (MT/Ha) 20.76 20.26 16.03 15.50 23.88 21.85 4.04 1.70 19.44 18.82 CPO Production