Sime Darby Bhd. · MYX:SIME
Sime Darby Bhd — Affin Hwang Auto Virtual Conference (August 2020)
33 slides from Sime Darby Bhd's conference presentation, Aug 11, 2020
Slide 1: Sime Darby Berhad
SIME DARBY BERHAD Affin Hwang Auto Virtual Conference: Investor Presentation 11 August 2020
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. Group Overview 3 2. Motors Division 12 3. Industrial Division 17 4. Logistics Division 22 5. Healthcare Division 25 6. Appendices 28 2
Slide 4: Group Overview
STRICTLY PRIVATE & CONFIDENTIAL Group Overview 3
Slide 5: Sime Darby Berhad 18 Countries & 19,909 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 South Korea One of the largest CAT China dealers globally Hong Kong 6 hospitals in Malaysia & 18 Countries & Macau Taiwan
Slide 6: Segmental Information
STRICTLY PRIVATE & CONFIDENTIAL Segmental Information Diversified exposure across segments and geographies, low gearing for expansion (Financial Year Ended 30 June 2019; RM million) Total Revenue (FY2019) Capital Structure (1HFY20) By Segment By Geography Debt/Equity: 38.5% 14,900 Logistics Others 1
Slide 7: Our Core Characteristics
STRICTLY PRIVATE & CONFIDENTIAL Our Core Characteristics High volume, slim margin trading business with broad footprint across Asia; world class partners Exposure to megatrends Geographical Diversification • Business rides on megatrends: • Established network and strong o Commodity price cycle for I
Slide 8: FY2020 Financial Results
STRICTLY PRIVATE & CONFIDENTIAL FY2020 Financial Results Reported Profit: 9 months ended 31 March 2020 In RM Million 9M FY2020 9M FY2019 YoY % Revenue 28,113 26,833 4.8 PBIT 1,092 1,016 7.5 Finance income 33 24 Finance costs (136) (93) Profit before tax 989 947 4.4 Taxation (305) (139) Profit after
Slide 9: FY2020 Financial Results: Core Profit
STRICTLY PRIVATE & CONFIDENTIAL FY2020 Financial Results Core Profit: 9 months ended 31 March 2020 In RM Million 9M FY2020 9M FY2019 YoY % Reported PBIT 1,092 1,016 7.5 Adjustments • Motors Vietnam - (16) • Gain on disposals - (116)1 • Fair value loss on financial assets (MES) 11 48 • Impairment of
Slide 10: Covid-19 Outbreak: Black Swan Event
STRICTLY PRIVATE & CONFIDENTIAL Covid-19 Outbreak: Black Swan Event Covid-19 is a global pandemic, geographical diversification is a key strength China Australia • Mining is categorized as an essential industry in Australia, hence operations will remain open Malaysia Industrial Motors • China is our
Slide 11: Sime Darby Berhad: Key Pillars of Value
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Berhad: Key Pillars of Value Geographical diversification is our key strength, products are a proxy to recovery Geographical Diversification Proxy to Recovery Main markets are China 40% revenue and BMW: Catch up spending from consumers Australia 30% rev
Slide 12: 5-Year Value Creation Plan
STRICTLY PRIVATE & CONFIDENTIAL 5-Year Value Creation Plan Blueprint intact; Enhanced focus on Operational Improvement and ROIC To be the leading Motors & Industrial multi-national in Asia Pacific Revenue Cost Monetisation of Organic Business Expand Synergistic M&A enhancement optimisation non core
Slide 13: Motors Division
STRICTLY PRIVATE & CONFIDENTIAL Motors Division 12
Slide 14: Sime Darby Motors
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors Focused on Expansion in Asia Pacific HK & Macau Current Presence Distributor & Dealer Dealer Countries & Achievements Assembly Rental One of the largest BMW dealer Gough Group globally One of Top Rolls Royce dealers China Taiwan in Asia Pacific
Slide 15: Sime Darby Motors
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Motors We represent strong luxury and mass market brands across APAC Malaysia Singapore Thailand Australia New Zealand Hong Kong Macau China China Taiwan Distributor Distributor Dealer Dealer Distributor Distributor Distributor Dealer Distributor & Dealer &
Slide 16: Motors Division
STRICTLY PRIVATE & CONFIDENTIAL Motors Division Higher in profits in the Greater China region +0.5% +8.0% China, HK, Macau & Taiwan 16,135 16,210 380 16,000 352 • Q3FY2020 results were affected by the coronavirus outbreak 14,000 • Higher profit at BMW China operations mainly from the strong 1st 12,0
Slide 17: Motors Outlook
STRICTLY PRIVATE & CONFIDENTIAL Motors Outlook Sales expected to be significantly affected by the coronavirus outbreak 6,804 60,333 7,477 13,437 11,350 Units Sold Units Sold Units Sold (9M FY2019: 65,443) 9M 9M FY2019 10,706 12,762 FY2020 21,120 32,440 30,800 Units Assembled (9M FY2019: 29,699) Aust
Slide 18: Industrial Division
STRICTLY PRIVATE & CONFIDENTIAL Industrial Division 17
Slide 19: Sime Darby Industrial
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Regional Presence Across 18 Countries and Territories, Supported by a Network of Branches Principal activities Xinjiang – Sale, rental and used equipment of Caterpillar South Korea Hunan equipment and engine Jiangxi Fujian – Sale of parts
Slide 20: Sime Darby Industrial
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Industrial Strong brands and comprehensive market reach across APAC Energy Solutions CAT Dealer Operations Allied Brands Group Group Malaysia Malaysia, Brunei HK& Macau, (via JV with China Kubota Corp) Singapore, Maldives, Christmas Island Asia Pacific regi
Slide 21: Industrial Division
STRICTLY PRIVATE & CONFIDENTIAL Industrial Division Profits supported by strong results from Australasia Australasia +13.0% +30.2% • Higher equipment deliveries and parts sales mainly to the 14,000 11,693 763 mining and construction sectors. 12,000 10,347 10,000 • Profit contribution from Hardchrome
Slide 22: Industrial Outlook
STRICTLY PRIVATE & CONFIDENTIAL Industrial Outlook Order book decreased by 14.9% from December 2019 RM2,868m RM2,441m MALAYSIA Order book as at -14.9% Order book as at • Stimulus package announced in Mar 2020 is expected to boost the 31 December 2019 construction sector however this will be dependen
Slide 23: Logistics Division
STRICTLY PRIVATE & CONFIDENTIAL Logistics Division 22
Slide 24: Business Overview
STRICTLY PRIVATE & CONFIDENTIAL Business Overview Well-connected major multipurpose port in the Yellow Delta River Sime Darby Logistics is the primary operator of Weifang Port, of which operations cover dry bulk, break bulk, liquid bulk, general cargo and container handling services. The Divisio
Slide 25: Sime Darby Logistics
STRICTLY PRIVATE & CONFIDENTIAL Sime Darby Logistics Logistics recorded lower profit mainly due to share of loss from joint ventures Logistics -21.5% Ports -93.9% 214 • Measures and restrictions put in place 115 168 by China to control the coronavirus outbreak has resulted in reduced container volum
Slide 26: Healthcare Division
STRICTLY PRIVATE & CONFIDENTIAL Healthcare Division 25
Slide 27: Ramsay Sime Darby Health Care
STRICTLY PRIVATE & CONFIDENTIAL Ramsay Sime Darby Health Care Premium hospitals in Malaysia and Indonesia ranging from primary to quaternary care Ara Damansara Medical Subang Jaya Medical Centre Park City Medical Centre Joint Venture with Ramsay Centre Opening date: 1985 Opening date: 2012 Ope
Slide 28: Ramsay Sime Darby Health Care
STRICTLY PRIVATE & CONFIDENTIAL Ramsay Sime Darby Health Care Significant earnings growth since inception of JV; strong growth in Asia expected to continue RSDH Financials Healthcare +7.1% 962 45 847 881 42 800 719 657 534 Mar-19 Mar-20 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 1HFY20 Healthcare PBI
Slide 29: Appendices
STRICTLY PRIVATE & CONFIDENTIAL Appendices 28
Slide 30: Executive Leadership
STRICTLY PRIVATE & CONFIDENTIAL Executive Leadership Qualified & Experienced Management Team DATO’ JEFFRI SALIM MUSTAMIR MOHAMAD DATUK THOMAS LEONG ROSELAINI FAIZ NOOR ZITA HASSAN DAVIDSON Group Chief Financial Group Chief Strategy Group Chief Human Resource Group Secretary Group Chief Executive Off
Slide 31: Malaysia Vision Valley Land
STRICTLY PRIVATE & CONFIDENTIAL Malaysia Vision Valley Land ~8,800 acres of land – Option to sell to SD Property Highlights of MVV Option to sell ~8,800 acres MVV is a large scale project announced by the Malaysian Prime Minister during his 2016 Budget speech, and is a component of the Government's
Slide 32: Tesco Disposal
STRICTLY PRIVATE & CONFIDENTIAL Tesco Disposal Expected to result in a Net Gain on Disposal of RM270 million Description of the Deal • On 22 April 2020, Sime Darby entered into conditional agreements with C.P. Retail Development Company Limited, Tesco Holdings B.V. and Tesco PLC to divest our 30% st
Slide 33: Thank You
STRICTLY PRIVATE & CONFIDENTIAL Thank You 32
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