Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — FY2023 Earnings Presentation
28 slides from Sime Darby Bhd's earnings presentation, Aug 24, 2023
Slide 1: Quarterly Report for the Full Year & Fourth Quarter Ended 30 June 2023
Sime Darby Berhad Quarterly Report for the Full Year & Fourth Quarter Ended 30 June 2023 24 August 2023
Slide 2: Group Results
Sime Darby Berhad Group Results
Slide 3: FY2023 Financial Results: Reported Profit
FY2023 Financial Results Reported Profit: Financial year ended 30 June 2023 In RM Million FY2023 FY2022 YoY % Revenue 48,288 42,502 13.6 PBIT 2,141 1,841 16.3 Finance income 70 39 Finance costs (333) (148) Profit before tax 1,878 1,732 8.4 Taxation (484) (474) Profit from continuing operations 1,394
Slide 4: FY2023 Financial Results: Core Profit
FY2023 Financial Results Core Profit: Financial year ended 30 June 2023 In RM Million FY2023 FY2022 YoY % Reported PBIT from continuing operations 2,141 1,841 16.3 Adjustments: • Gain on disposal of Motors property (179) - • Forex gain on settlement of net investment (29) (6) • Income from legacy co
Slide 5: FY2023 Segmental PBIT
FY2023 Financial Results Segmental PBIT: Financial year ended 30 June 2023 FY2023 FY2022 Reported Core PBIT In RM Million PBIT Reported Core Reported Core YoY % YoY % Adjustments Adjustments PBIT PBIT PBIT PBIT Continuing operations Industrial 1,051 - 1,051 803 - 803 30.9 30.9 Motors 1,052 (179)1 87
Slide 6: Reported Profit: Quarter ended June 2023
FY2023 Financial Results Reported Profit: Quarter ended 30 June 2023 In RM Million Q4 FY2023 Q4 FY2022 YoY % Revenue 13,286 10,851 22.4 PBIT 916 554 65.3 Finance income 23 11 Finance costs (127) (46) Profit before tax 812 519 56.5 Taxation (176) (138) Profit from continuing operations 636 381 66.9 N
Slide 7: Core Profit: Quarter ended June 2023
FY2023 Financial Results Core Profit: Quarter ended 30 June 2023 In RM Million Q4 FY2023 Q4 FY2022 YoY % Reported PBIT from continuing operations 916 554 65.3 Adjustments: • Gain on disposal of Motors property (179) - • Forex gain on settlement of net investment (10) (6) Core PBIT from continuing op
Slide 8: Segmental PBIT: Quarter ended June 2023
FY2023 Financial Results Segmental PBIT: Quarter ended 30 June 2023 Q4 FY2023 Q4 FY2022 Reported Core PBIT In RM Million PBIT Reported Core Reported Core YoY % YoY % Adjustments Adjustments PBIT PBIT PBIT PBIT Continuing operations Industrial 375 - 375 280 - 280 33.9 33.9 Motors 555 (179)1 376 272 -
Slide 9: PBIT - from continuing operations
PBIT - from continuing operations Full Year Core PBIT from continuing operations was 6% higher than previous year mainly due to higher profit from Industrial Australasia and higher dividend income, partly offset by lower profit from Motors China. Q4 FY2023 vs. Q4 FY2022 10 916 179 727 146 （20） Q 554
Slide 10: Regional breakdown as of June 2023
Regional breakdown as of 30 June 2023 Our geographical spread across the Asia Pacific region broadens our earnings base Revenue Breakdown Core PBIT Breakdown China, 13% Australasia, China, SEA, 6% 37% 35% Australasia, 59% Malaysia, 22% Malaysia, 16% SEA, 12% China SEA Malaysia Australasia China SEA
Slide 11: Snapshot of borrowing position as of 30 June 2023
FY2023 Financial Results Snapshot of borrowing position as of 30 June 2023 Long Term vs Short Term Debt Total Debt 8,454 + 39.7% 2164 6,052 LT Debt: 4,410 LT Debt: 1699 2246 1,938 182 390 433 ST Debt: 3,914 3781 3611 ST Debt: 4,044 RM 8.5bn As at June 2023 March 2023 June 2023 ST Borrowings ST Lease
Slide 12: Segmental Results
Sime Segmental Results
Slide 13: Industrial Division
Industrial Division Strong performance in Australasia mainly attributed to higher parts revenue. Australasia 10.4% 30.9% 16,675 1,051 • The higher profit was mainly attributed to higher 15,099 parts revenue, supported by parts price increases and 803 maintenance work for mining equipment. Jun-22 • S
Slide 14: Industrial Outlook
Industrial Outlook High order backlogs mainly from the mining and construction projects in Australia. AUSTRALASIA • Coal prices are expected to remain above the break-even points for miners, which should sustain the demand for 4,699 4,729 equipment and product support. 4,588 4,419 • Pipeline of publ
Slide 15: Cavpower: Business Overview
Cavpower: Business Overview Acquisition of Cavpower presents a rare opportunity to grow our Caterpillar dealership footprint in Australia Cavpower Location Overview of Business Mining: SA1 is Home to a vast Mining Pipeline ~A$ 3b multi-decade mining project development pipeline Expansion into South
Slide 16: Motors Division
Motors Division FY2023 included gain on disposal of property and higher dividend income. Partly offset by lower profit from China mainly due to lower vehicle margins. 15.4% 3.1% China 31,552 27,337 1,020 1,052 • Mainland China – Profit declined predominantly due to lower vehicle margins. Jun-22 Sing
Slide 17: Motors Outlook
Motors Outlook Sales volume in the current year were higher in most regions on the back of new model launches and easing supply chains. 116,768 32,127 Units Sold* Units Assembled Units sold by region (FY2022: 101,533) (FY2022: 25,248) * Includes used cars sold on consignment CHINA • The National Dev
Slide 18: Motors Outlook: Upcoming new models
Motors Outlook Upcoming exciting new models BYD – Seal Kia – EV5 Malaysia – 2023 China – 2023 Rolls-Royce – Spectre BMW – i5 Full Electric China –2023 M a l a y s i a – 2 0 2 317
Slide 19: Healthcare
Healthcare Share of profit was higher as RSDH recorded higher revenue from its operations in Malaysia Joint Venture with Ramsay Healthcare 26.7% 57 45 50% 50% PBIT Jun-22 Jun-23 In RM Million FY2022 FY2023 PBIT 45 57 ROIC 6.4% 7.5% Joint venture with Ramsay Health Care • Higher share of profit as
Slide 20: Special Briefing: Acquisition of 61.2% Stake in UMW Holdings Berhad
Special Briefing: Acquisition of 61.2% Stake in UMW Holdings Berhad 19
Slide 21: Corporate Profile of UMW
Corporate Profile of UMW Leading Autos & Industrial Conglomerate with Partnerships with Global Players Overview of Business Regional Footprint UMW is a RM 15 bn annual turnover with a strong footprint in the automotive sector in Malaysia. Autos: ~52% market share in auto volumes in Malaysia through
Slide 22: Strategic Rationale
Strategic Rationale Compelling deal logic, supported by 5 key propositions Greater resilience with diversified geographical and business portfolio • Strengthen SD’s auto footprint in Malaysia • Revenue contribution by region will be approximately [30:30:30] (Malaysia, Australia and China) Full and c
Slide 23: The deal will create presence across the auto spectrum
The deal will create presence across the auto spectrum Broaden our product offerings with widely popular mass market brands Entry Level Mid-market Luxury Super Luxury Favored by High-Net- For middle-aged Worth Individuals Favored by middle- wealthy professionals Favored by young class families profe
Slide 24: Proforma Financial Effects based on historical figures
Proforma Financial Effects based on historical figures “Moves the Needle” in terms of Revenue Expansion and Income Growth Note: Based on FY22 Financials REVENUE PATAMI EARNINGS PER SHARE (RM million) (RM million) (sen) EPS 18.02 1,227 17.61 58,316 58,316 1,199 16.2 42,502 1,103 As-is After Proposed
Slide 25: Valuation: Implied adjusted PER and PBR
Valuation: Implied adjusted PER and PBR High Quality Business within the Range of Automotive Peer Multiples Implied adjusted PER Implied adjusted PBR RM million RM million Total Consideration after adjustment(1) 5,272.9 5,272.9 Divided by: Adjusted PATAMI and NA of UMW Group 391.2(2) 4,187.1(3) Impl
Slide 26: Financial strength of UMW Toyota and Perodua
Financial strength of UMW Toyota and Perodua Key Subsidiaries & Associates have Strong Balance Sheet and Earnings Potential UMW Toyota and Perodua (along with its key associate groups) are entities with strong financial health, given their considerable net cash position as at 31 December 2022 Net Ca
Slide 27: Indicative Timeline
Indicative Timeline PROPOSED ACQUISITION PROPOSED MGO B + 21 days (D) Early-Dec 2023 D + 60 days Mid-Nov 2023 24 Aug 23 Mid Feb 2024 Despatch of Offer (B) SPA Signing & Document to Final possible Bursa Unconditionality of shareholders of closing date for Announcement the SPA UMW the MGO 1 2 3 4 5 6
Slide 28: Thank you
Sime Thank you