Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — Investor Presentation (October 2021)
38 slides from Sime Darby Bhd's investor presentation, October 2021
Slide 1: Sime Darby Berhad Investor Relations Discussion
STRICTLY PRIVATE & CONFIDENTIAL SIME DARBY BERHAD Investor Relations Discussion October 2021 0
Slide 2: Disclaimer
STRICTLY PRIVATE & CONFIDENTIAL Disclaimer This document is strictly confidential to the recipient. It is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any pu
Slide 3: Table of Contents
STRICTLY PRIVATE & CONFIDENTIAL Table of Contents Section Page 1. Sime Darby Berhad 3 2. Industrial Division 17 3. Motors Division 22 4. Healthcare Division 28 22
Slide 4: Sime Darby Berhad
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Berhad 33
Slide 5: Sime Darby Berhad 19 Countries & 21,941 Employees
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Berhad Leading trading company in Asia Pacific with strong partnerships with Premium Brands One of the largest BMW dealers in the World and the South Korea World’s largest Rolls China Royce dealer Hong Kong Japan Second largest CAT 19 Countries & Macau Taiw
Slide 6: Brands that we carry
STRICTLY PRIVATE & CONFIDENTIAL Brands that we carry “Partner of Choice” for many of the World’s Leading Brands Industrial Powerhouse Automotive Specialist INDUSTRIAL MOTORS 5 55
Slide 7: Sime Darby: Revenue by Geography
STRICTLY PRIVATE & CONFIDENTIAL 6 Sime Darby: Revenue by Geography >80% of our Revenue is generated outside Malaysia; China & Australia are Key Markets 12% 13% “Sime Darby Berhad is a China is the largest 43% multinational region, contributing ~40% of our revenue company whereby 32% ~88% of revenue
Slide 8: Sime Darby: Operations Overview
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby: Operations Overview Retail & Aftersales for Motors & Industrial equipment, valuable Healthcare business Motors Industrial Healthcare Others Retail, distribution, Equipment & 50:50 JV with rental & assembly after-sales services Ramsay Healthcare Seaport ope
Slide 9: The Sime Darby Advantage
STRICTLY PRIVATE & CONFIDENTIAL The Sime Darby Advantage Broad footprint across Asia Pacific and strong relationship with World Class principals Strong Partnership with World Class Brands • Partner of choice for world leading brands since who want to expand in Asia 1929 • Strong standards of governa
Slide 10: FY2021 Financial Results
STRICTLY PRIVATE & CONFIDENTIAL FY2021 Financial Results Reported Profit: Financial year ended 30 June 2021 In RM Million FY2021 FY2020 YoY % Revenue 44,483 36,934 20.4 PBIT 2,181 1,407 55.0 Finance income 46 51 Finance costs (122) (183) Profit before tax 2,105 1,275 65.1 Taxation (575) (402) Profit
Slide 11: FY2021 Financial Results: Core Profit
STRICTLY PRIVATE & CONFIDENTIAL FY2021 Financial Results Core Profit: Financial year ended 30 June 2021 In RM Million FY2021 FY2020 YoY % Reported PBIT 2,181 1,407 55.0 Adjustments • Fair value loss on financial assets (MES) 2 72 • Logistics & Land impairments 1761 1532 • Gain on disposal (332)3 (18
Slide 12: FY2021 Financial Results: Cash, Gearing, Dividend
STRICTLY PRIVATE & CONFIDENTIAL FY2021 Financial Results Strong cash flows and low gearing contributed to a net cash position as of 30 June 2021 Cash Position vs Debt Gearing Dividend & Cash Flow RM, Million RM, Million Core EPS DPS Dividend Payout % Leases 16,260 RM 83% 2,473 72% 72% Borrowings 0.2
Slide 13: Key Financial Highlights: Post Demerger
STRICTLY PRIVATE & CONFIDENTIAL Key Financial Highlights: Post Demerger Revenue and earnings growing consistently, post-demerger Revenue (RM million) Reported PBIT (RM million) Gain on Tesco disposal & 2,181 44,483 China Motors rebound 36,934 36,156 1,383 1,407 33,828 1,074 FY18 FY19 FY20 FY21 FY18
Slide 14: Business Expansion & Portfolio Rationalisation
Business Expansion & Portfolio Rationalisation We have been active in business expansion; rationalisation of large assets are ongoing Dealerships Assembly Industrial Organic Shanghai Chengdu Shenzhen Changsha Obtained Changsha Expansion Qujing Kunming Guangzhou franchise for Kunming Inokom Assembly
Slide 15: Sime Darby: Corporate Strategy Blueprint
Sime Darby: Corporate Strategy Blueprint Focus on Transformational M&A, with expansion in China Auto and Mining Services Strategy Blueprint FY2022 Growth & Business Monetization of non-core Operational Excellence Expansion assets Revenue Enhancement Motors • Luxury dealerships in China • Grow Volume
Slide 16: Sime Darby: Our China Journey
Sime Darby: Our China Journey China is our core market (40% revenue); looking to massively expand Our China Operations Growth Strategies China: Revenue & PBIT Growth 2010 -2021 20,000 600 500 15,000 400 10,000 300 200 5,000 100 - - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Revenue
Slide 17: Mining will Remain Relevant
Mining will Remain Relevant With the energy transition & regional development, demand for mining is resilient Mining remains globally relevant MET Coal: India demand will drive growth Metals (lithium, cobalt etc.) are essential components for India and SE Asia lead the long-term demand due to low th
Slide 18: Dealers Play a Crucial Role in Automotive Sales
Dealers Play a Crucial Role in Automotive Sales Luxury customers prefer physical touchpoints for test drive & service Reason for importance We will enhance: Network & format 1 optimization Physical interaction remains central especially Selective geographic 01 for luxury segment (90% New car 2 expan
Slide 19: EV & Mobility Strategies
STRICTLY PRIVATE & CONFIDENTIAL EV & Mobility Strategies Committed to grow EV portfolio; Mobility to learn how autos is evolving 1 Leverage on EV line up of 1 Venture Capital existing Principals Autonomous RM 25m investments in start-up Connected USED CARS RIDE HAILING 2 Secure partnerships with new
Slide 20: ESG Framework
ESG Framework Key themes around Environment, Customer Journey and Technology & Innovation Developing Sustainable Futures Purpose >50% products in our 30% reduction of emissions Minimum RM250m Targets portfolio by 2025 are more by 2030 (Scope 1 & 2 only) investments in ESG energy efficient than 2020
Slide 21: Executive Leadership
STRICTLY PRIVATE & CONFIDENTIAL Executive Leadership Qualified & Experienced Management Team DATO’ JEFFRI SALIM MUSTAMIR MOHAMAD DATUK THOMAS LEONG ROSELAINI FAIZ NOOR ZITA HASSAN GLENN SHEAHAN DAVIDSON Group Chief Financial Group Chief Strategy Group Chief Group Secretary Group Chief Safety & Group
Slide 22: Industrial Division
STRICTLY PRIVATE & CONFIDENTIAL Industrial Division 21 21
Slide 23: Our Operations
STRICTLY PRIVATE & CONFIDENTIAL Our Operations Industrial has a large presence across 18 countries in Asia Pacific, representing seven well known industrial brands, including the second largest Caterpillar dealership group globally. Heavy Power Systems Product Equipment Industrial Equipment Sales Sa
Slide 24: Division Business Profile and Portfolio
STRICTLY PRIVATE & CONFIDENTIAL Division Business Profile and Portfolio Diversified Products and Markets Skid Steer Dragline Hydraulic Excavator Mine Truck Diesel Engine SEM Wheel Loader 23 23
Slide 25: Industrial Division FY21 vs FY20 Results
STRICTLY PRIVATE & CONFIDENTIAL Industrial Division FY21 vs FY20 Results Profits dipped mainly due to lower revenue in Australasia and weaker margins in China Australasia 1.3% -6.0% • Lower revenue from the mining equipment and 15,794 16,004 parts segments. 967 909 • Partly mitigated by Terra CAT pr
Slide 26: Industrial Outlook
STRICTLY PRIVATE & CONFIDENTIAL Industrial Outlook Orderbook continues to hold strong AUSTRALASIA RM3,238m RM3,278m • Mining sector in Australia continues to face headwinds Order book as at +1.2% Order book as at from on-going diplomatic disputes with China. 31 March 2021 30 June 2021 • The parts se
Slide 27: Motors Division
STRICTLY PRIVATE & CONFIDENTIAL Motors Division 26 26
Slide 28: We represent >30 brands and operate >200 outlets in 9 markets
STRICTLY PRIVATE & CONFIDENTIAL We represent >30 brands and operate >200 outlets in 9 markets across APAC with 43% of revenue from China Footprint FY21 Financials China 43% Taiwan 1% Revenue RM28.2bn HK & Macau 6% +35% PBIT RM1.0bn Thailand 3% +83% Australia 8% FY21 Achievements Malaysia 15% 85,000
Slide 29: Profits doubled post-demerger on investments and supportive trends
STRICTLY PRIVATE & CONFIDENTIAL Profits doubled post-demerger on the back of investments and supportive macroeconomic trends 35.4% 82.9% 28,235 1,050 Financial performance post- demerger 20,852 30m 28.3 1.4m Jun-20 28m 574 26m 1.2m Jun-21 24m 21.6 1.0m 20.3 20.9 22m 1.0 0.8m 20m 0.6m 18m 0.6 0.6 0.4
Slide 30: Motors Outlook
STRICTLY PRIVATE & CONFIDENTIAL Motors Outlook Mixed outlook amidst Covid-19 restrictions and global chip shortage 12,564 10,748 15,708 16,536 103,417 Units Sold (FY2020: 79,241) 13,477 Units Sold 16,324 Units Sold FY2020 FY2021 17,141 42,452 54,849 Units Assembled (FY2020: 23,831) Australasia China
Slide 31: Motors Outlook
STRICTLY PRIVATE & CONFIDENTIAL Motors Outlook Upcoming model launches expected in FY2022 BMW iX3 LCI BMW X3 LCI China – Q4 2021/ Q1 2022 Malaysia – Q4 2021/ Q1 2022 BMW iX BMW i4 China/ Malaysia – Q1 2022 Malaysia – Q1 2022 30 30
Slide 32: Healthcare Division
STRICTLY PRIVATE & CONFIDENTIAL Healthcare Division 31 31
Slide 33: Operational Footprints
STRICTLY PRIVATE & CONFIDENTIAL Operational Footprints Premium tertiary hospitals with world class parentage Klang Valley 1 2 ADMC 3 PMC 4 MHK1 SJMC Cluster 3 1 Hospital in 4 2 Klang Valley ◼ Since 1985 ◼ Since 2012 ◼ Since 2012 ◼ Since 2016 ◼ 444 licensed beds ◼ 117 licensed beds ◼ 150 licensed bed
Slide 34: Operational Highlights
STRICTLY PRIVATE & CONFIDENTIAL Operational Highlights Operational capabilities comparable with key regional healthcare operators FY20 data unless otherwise stated M’sia only FACILITIES # of hospitals 6 16 32 25 # of beds (operational) 1,210 2,696 3,410 3,105 INPATIENT Avg. revenue per inpatient adm
Slide 35: Healthcare Strategy Blueprint
STRICTLY PRIVATE & CONFIDENTIAL Healthcare Strategy Blueprint Focused on growing its core business within the healthcare space Vision: To develop a regional tertiary healthcare platform with a core focus on tertiary care services. Brownfield Optimisation Organic Growth Inorganic Growth development S
Slide 36: Transaction Highlights
STRICTLY PRIVATE & CONFIDENTIAL Recent Transaction Scale up through acquisitions – Manipal Hospitals Klang Manipal Hospitals Klang (MHK) is a 220-bed capacity Target Overview (165 licensed beds), MSQH accredited tertiary care hospital in Klang, Selangor RM 247 million with 5 operating theatres and E
Slide 37: Healthcare FY21 vs FY20
STRICTLY PRIVATE & CONFIDENTIAL Healthcare FY21 vs FY20 61% drop due to tax adjustments, asset impairment and dividend withholding tax • RSDH Group Revenue stood at RM 1,078 m (increase of 11 YoY from Healthcare 2020) mainly due to delivery of COVID related cases services as well as -61.5% higher ac
Slide 38: Thank You
STRICTLY PRIVATE & CONFIDENTIAL THANK YOU 37 26 37
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