Sime Darby Bhd. · MYX:SIME

Sime Darby Bhd — Investor Presentation (November 2017)

42 slides from Sime Darby Bhd's investor presentation, November 2017

1. Slide 1: Sime Darby Berhad Investor Presentation

   SIME DARBY BERHAD Investor Presentation November 2017

2. Slide 2: Disclaimer

   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 purpose. Upon request, you shall p

3. Slide 3: Table of Contents

   Table of Contents Section Page 1. Sime Darby Berhad 3 2. Motors Division 13 3. Industrial Division 21 4. Logistics Division 32 5. Others 35 6. Appendices 38 Strictly Private & Confidential 2

4. Slide 4: Sime Darby Berhad Company Overview

   Sime Darby Berhad Company Overview Strictly Private & Confidential 3

5. Slide 5: Who We Are at a Glance

   Sime Darby Berhad Who We Are at a Glance Motors Industrial Logistics Healthcare #2 BMW dealer globally #3 Caterpillar dealer globally China 4 ports & 2 water treatment plants South Korea in China Macau Hong Kong Taiwan 6 hospitals in Malaysia & Indonesia Thailand Vietnam Malaysia FY17 Financial Snap

6. Slide 6: Business overview

   Sime Darby Berhad Business overview Motors Industrial Logistics Healthcare  Retail, distribution and assembly  Comprehensive range of equipment  Ports & Logistics and Water  50:50 JV with Ramsay Healthcare businesses and services i.e. new and used Management in Shandong, Eastern for the manageme

7. Slide 7: Group FY2017 Financials

   Sime Darby Berhad Group FY2017 Financials (FYE June; RM mm) Total Revenue Capital Structure(1) By Segment By Geography Debt/Equity: 20.8% Logistics, 1% Others, 0% Others, 15,370 0% 375 Australasia(2), 29% Malaysia, 15% Industrial, 14,995 33% 3,194 2,072 SEA (excl. 1,948 M'sia), 18% 1,246 Equity Debt

8. Slide 8: Segmental Financials

   Segmental Financials Core businesses of Motors and Industrial provide the highest ROAIC Historical ROAIC (FY17 ROAIC vs 10-year and 5-year average) By Segment  Core businesses: Notwithstanding FY17 16% Industrial’s performance in FY2017, 10-year average 13% 5-year average the Motors and Industrial

9. Slide 9: Motors: Stable performance; Industrial: Cycle has bottomed out

   Segmental Financials Motors: Stable performance; Industrial: Cycle has bottomed out Revenue (RM bn) PBIT (RM mn) ROAIC (%) Commentaries FY17: RM20.6bn FY17: RM633mn FY17: 11%  Motors achieved its highest ever revenue in a decade on the back 10-year 10-year 503 10-year of organic and 15.0 13% averag

10. Slide 10: The New Sime Darby Berhad: What's different?

    The New Sime Darby Berhad What’s different? FOCUSED LEAN AGILE • Focus on core • HQ: Small GHO(1), • Single-tier board trading model reduced staff from structure • Footprint across 450 to c.70 • Greater Asia Pacific • Operations: decentralisation to growth region Continued business units operational

11. Slide 11: Value creation: Delivering returns and growth

    The New Sime Darby Berhad Value creation: Delivering returns and growth To be the leading Motors & Industrial multi-national in Asia Pacific RATIONALISING OPERATIONAL ACCELERATING NON-CORE EXCELLENCE GROWTH BUSINESSES • Optimise cost • New markets and • Re-deploy capital structure new brands towards

12. Slide 12: Well-positioned to tap on Asia Pacific's growth

    The New Sime Darby Berhad Well-positioned to tap on Asia Pacific’s growth Proven Trading and Long-standing Partnership Services Business Model with Established Brands Resilient ROAIC for the past 10 years(1) SINCE SINCE despite challenging business conditions 1929 1972 Balanced Portfolio Tapping on

13. Slide 13: Qualified & Experienced Management Team

    Qualified & Experienced Management Team Jeffri Salim Davidson Dato’ Lawrence Lee Cheow Hock Group Chief Executive Officer Managing Director, Sime Darby Motors  Appointed Deputy Group CFO in 2016 and previously Senior  Appointed as Managing Director of Motors Division since 2007 Vice President of I

14. Slide 14: Motors Division

    Motors Division Strictly Private & Confidential 13

15. Slide 15: History & Key Milestones

    History & Key Milestones Solid Track Record Across 10 Markets in the Asia Pacific Region BMW (HK & Macau) New Zealand Malaysia & China Vietnam, Taiwan, 1972 1998 2010 2013 Acquired the sole importer Acquired 80% of  Appointed distributor & Malaysia, Australia and distributor of BMW cars Continental

16. Slide 16: We represent strong luxury and mass market brands across APAC

    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 & Dealer & Dealer & Dealer & Deal

17. Slide 17: Focused on Expansion in Asia Pacific

    Sime Darby Motors Focused on Expansion in Asia Pacific HK & Macau Taiwan China No. 2 BMW Dealer Globally  Expand aftersales and used car business Thailand Malaysia  Invest in new dealerships and acquire dealership groups  Expand assembly Singapore capabilities Australia New Zealand Current Presen

18. Slide 18: The Growth Strategy Moving Forward

    Sime Darby Motors The Growth Strategy Moving Forward IV III Mergers & acquisitions II New marques & markets Objectives I Expand along ▪ Accelerate growth value chain and achieve Strengthening ▪ Expand dealerships economies of scale the core into new markets or represent new ▪ Capture value- marques

19. Slide 19: Key Financial Highlights

    Sime Darby Motors Key Financial Highlights Revenue (RM mm) PBIT (RM mm) Record sales of the trucking business across all brands in Impacted by GST in Stronger contributions NZ, higher sales volume in China and increased COE quota Malaysia and government from Malaysia and & timely launches of new BMW

20. Slide 20: Units Sold, Revenue & PBIT by Region (1/2)

    Sime Darby Motors Units Sold, Revenue & PBIT by Region (1/2) FY17 Sales Contribution Reported Revenue & PBIT Marques Units Sold & Units Sold (RM mm) Malaysia 7.3% 4.7% 2.6% 6.2% 333 204 223 Malaysia, 31,230 17% 26,607 87 Malaysia 4,563 4,323 18,571 17,663 3,573 3,385 2014 2015 2016 2017 2014 2015 20

21. Slide 21: Units Sold, Revenue & PBIT by Region (2/2)

    Sime Darby Motors Units Sold, Revenue & PBIT by Region (2/2) FY17 Sales Contribution Reported Revenue & PBIT Marques Units Sold & Units Sold (RM mm) China / HK / 3.5% 1.6% 1.7% 2.7% Macau / Taiwan 250 231 124 134 China/HK/Macau, 33,915 34,293 8,549 41% 31,827 7,984 East Asia 31,596 7,758 7,227 2014

22. Slide 22: Industrial Division

    Industrial Division Strictly Private & Confidential 21

23. Slide 23: History & Key Milestones

    History & Key Milestones Long-standing Partnership with Caterpillar Since 1929 Sime Darby & Co China Engineers Ltd (Kumpulan Sime Darby became a subsidiary of the group 1910 1972 Bhd) established in Malacca, Malaysia Tractors dealerships Hastings Deering USD8.8 bn acquisition of Bucyrus by Caterpill

24. Slide 24: Strong brands and comprehensive market reach throughout APAC

    Sime Darby Industrial Strong brands and comprehensive market reach throughout APAC Energy Solutions CAT Dealer Operations Allied Brands Group Group Malaysia Malaysia, Brunei (via JV with Hong Kong & Kubota Corp & Macau, China Marubeni Corp) Singapore, Maldives, Christmas Island Asia Pacific region H

25. Slide 25: Regional Presence Across Countries and Territories

    Regional Presence Across 17 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, service maintenance, equipment CHINA/HK  Guangdong

26. Slide 26: Key Industry Highlights

    Sime Darby Industrial Key Industry Highlights Queensland Hard Coking Coal FOB (USD/tonne)  Metallurgical coal prices have 400 stabilised around 350 USD200/tonne vs. average FOB US/t FOB QLD 300 cost for Queensland producers of 250 USD100/tonne. 200 150  The return to profitability has 100 sparked

27. Slide 27: The Growth Strategy Moving Forward

    Sime Darby Industrial The Growth Strategy Moving Forward IV III Grow new businesses II Organic growth Objectives I ▪ Develop new business Operational pillars that are excellence complementary or adjacent to the core Strengthening ▪ Capture value-added the core services beyond new ▪ Expand dealership

28. Slide 28: Key Financial Highlights

    Sime Darby Industrial Key Financial Highlights Revenue (RM mm) PBIT (RM mm) 14,429 1,396 13,575 1,331 12,073 10,962 1,106 10,637 1,039 9,946 10,127 8,645 898 8,210 793 7,629 725 552 341 253 (3) FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2008 FY2009 FY2010 FY2011 FY2012 F

29. Slide 29: Product support revenue increases during industry down cycle

    Sime Darby Industrial Product support revenue increases significantly during industry down cycle FY17 Revenue by segment vs FY12 FY12 Total Revenue: RM13,575 mm FY17 Total Revenue: RM10,127 mm Allied Business, 5% Allied Business, 5% Energy Solutions, Energy Solutions, 4% 3% Power Systems, 8% Power S

30. Slide 30: Revenue & PBIT by Region (1/2)

    Sime Darby Industrial Revenue & PBIT by Region (1/2) FY17 Sales Contribution & Products / Services Revenue (RM mm) PBIT (RM mm) YoY Orderbook FY17 Sales Contribution CAT New Equipment & Engines 11.6% 8.5% 5.2% 4.4% Malaysia, 11% 1,423 150 1,230 Excavators Dozers 1,099 Malaysia 993 104 Forest machine

31. Slide 31: Revenue & PBIT by Region (2/2)

    Sime Darby Industrial Revenue & PBIT by Region (2/2) FY17 Sales Contribution & Products / Services Revenue (RM mm) PBIT (RM mm) YoY Orderbook FY17 Sales Contribution CAT New Equipment & Engines 5.5% 4.7% 3.9% 3.5% China / HK / Macau, 27% 142 China, HK & Macau 2,691 2,610 2,605 Excavators Dozers 112

32. Slide 32: Safety & Health Performance

    Sime Darby Industrial Safety & Health Performance Lost Time Injury Frequency Rate Incidents per million man-hours worked 3.3 3.4 52% reduction 2.7 in incidents 2.5 1.6 FY2013 FY2014 FY2015 FY2016 FY2017  Industrial Division is focused on embedding the belief that all incidents are preventable.  Th

33. Slide 33: Logistics Division

    Logistics Division Strictly Private & Confidential 32

34. Slide 34: Business Overview

    Business Overview Targeted Total Capacity of ~100 million MT by 2020  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 Division also operates three river ports located in J

35. Slide 35: Key Financial and Operational Highlights

    Key Financial and Operational Highlights Revenue (RM mm) PBIT (RM mm) Lower Jining Port tariffs as a result of intense competition & tighter environmental controls by Jining authority 303 103 294 294 77 28 250 44 60 70 53 64 6 12 37 23 250 75 241 243 64 65 213 41 2014 2015 2016 2017 2014 2015 2016 2

36. Slide 36: Others

    Others Strictly Private & Confidential 35

37. Slide 37: Ramsay Sime Darby Health Care: The Strategy Moving Forward

    Ramsay Sime Darby Health Care (RSDHC) The Strategy Moving Forward Active Beds: 1,152 Bed Capacity: 1,541 50% Assets in Malaysia Subang Jaya Ara Damansara ParkCity MEDIPLEX RSDH College Medical Centre Medical Centre Medical Centre Wellness Centre Assets in 50% Indonesia RS Premier RS Premier RS Premi

38. Slide 38: Malaysia Vision Valley Land

    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 11th Malaysia Plan and the Natio

39. Slide 39: Appendices

    Appendices Strictly Private & Confidential 38

40. Slide 40: Proposed Corporate Structure Post-Proposals

    Sime Darby Berhad Proposed Corporate Structure Post-Proposals (RM million) 30-Jun-17 Motors Industrial Logistics Others Group External Debt 756 1,304 312 822 3,194 Cash 513 454 175 930 2,072 Revenue 20,602 10,127 303 55 31,087 PBIT 633 (4) 64 91 784 Motors Industrial Logistics Healthcare & Others 50

41. Slide 41: FY2017 Balance Sheet

    SDB Group FY2017 Balance Sheet Historical Financials Healthcare (FYE June; RM million) Motors Industrial Logistics Proforma & Others Fixed Assets 2,973 3,795 1,738 145 8,651 Associates, JVs and Investments 109 339 414 1,021 1,883 Inventories 3,461 3,619 3 20 7,103 Trade & Other Receivables 2,098 2,0

42. Slide 42: End

    End Strictly Private & Confidential 41

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