UMW Holdings Berhad. CORPORATE PRESENTATION July 2016

Transcription

1 CORPORATE PRESENTATION July 2016

2 UMW AT A GLANCE Number 1 in Malaysia s automotive industry with 46% market share in Toyota forklift has 50% market share in Malaysia; Top 5 distributors in the world. Malaysia s only owner-operator of jack-up drilling rigs. First Malaysian company to become a Tier-1 supplier to Rolls-Royce Plc. 2

3 ENHANCING CAPABILITIES Laying Building Blocks for Excellence Tier-1 supplier to Rolls-Royce 34 years with Toyota 23 years with Daihatsu Founded in 1917 FAN CASE MANUFACTURER AUTOMOTIVE ASSEMBLY BICYCLE REPAIR SHOP 3

4 UMW MILESTONES 2010s 1917 Chia Yee Soh founded a small family business in Singapore 1960s Komatsu heavy equipment distributorship Toyota Forklift franchise 1970 United Motor Works (Malaysia) Holdings Berhad listed on stock exchange 1980s Toyota vehicle franchise PNB became major shareholder 1990s Largest shareholder in Perodua, with Daihatsu Motor Co. Ltd. as the technology provider 2000s Oil & Gas Division established as UMW s 4th core business UMW is the official Lexus distributor 2008 UMW Rebranding UMW Oil & Gas Corporation Berhad listed on Bursa Malaysia UMW was selected as Rolls- Royce s only Malaysian partner for a 25+5 year contract to manufacture fan case 4

5 INTERNATIONAL PRESENCE 13 Countries 2015 Revenue RM14.4 billion Turkmenistan Myanmar Automotive Equipment Manufacturing & Engineering Oil & Gas 2015 PBT RM269.7 million China Taiwan Vietnam Employees 12,328 Malaysia Papua New Guinea Singapore Australia Credit Rating RAM: AA2 Oman India Thailand Indonesia 5

6 2015 Revenue & PBT Breakdown Revenue Profit Before Taxation 6% 5% 2% 2% 13% 74% 20% 78% Automotive Equipment Oil & Gas M&E Others 6

7 Key Performance Indicators ANNUAL DIVIDEND PAYOUT > Payout Ratio (%) Gross Dividend Per Share Of RM0.50 Each (sen) March 08 Share Split from RM1.00 to RM0.50 each 7

8 Key Performance Indicators RETURN ON SHAREHOLDERS FUNDS 21.9% 16.5% 17.0% 12.7% 12.5% 10.5% 13.5% 11.7% 11.7% 10.1% % 8

9 OUR COMMITMENT 1 Long term partnership with Toyota o The new RM2 billion plant will enhance localisation and establish Malaysia as an Energy Efficient Vehicle (EEV) hub. o Will focus on high skilled and high income workforce. 2 Commitment to Oil & Gas business o Continue to provide support to UMW Oil & Gas to ensure survivability in the short term and sustainability in the long term. 3 Venture into high value manufacturing o o o o The foray into manufacturing of fan casing with Rolls-Royce will spur UMW entry into the high value manufacturing. This would position UMW as the leading partner for other OEMs. This will mitigate over reliance on automotive in the long run. This will promote the development of highly skilled human capital. Impetus for the development of Serendah land. The above ensures continued returns on our core businesses as well as generating sources of income from new growth areas. Page 9

10 Our Shareholders - (As of 31/07/2016) Permodalan Nasional Berhad (PNB)/ PNB Managed Unit Trust Funds, 57.56% Foreign Shareholders, 11.36% Market Capitalisation (31/07/2016) RM6.7 billion Employees Provident Fund Board, 16.52% Other Local Shareholders, 14.56% * PNB and EPF shareholdings are based on direct interest and deemed interest 10

11 OUR BUSINESS DIVISIONS CORE BUSINESSES NEW GROWTH Automotive Equipment O&G M&E Technology Land Investment IT support services Property development Heavy Industrial Drilling Oilfield Services Lubricant Auto Component NON CORE BUSINESSES Distribution Assembly Manufacture Sales & Service Marine & Power Distribution Trading After sales service Drilling operation Oilfield services Aerospace Distribution Manufacture Oil & Gas Related Manufacturing Land Rigs Trading Page 11

12 AUTOMOTIVE Operations

13 UMW AUTOMOTIVE DIVISION 51% 38% UMW Toyota Motor Sdn. Bhd.* Investment holding, importation and distribution of Toyota vehicles and related parts Perusahaan Otomobil Kedua Sdn. Bhd.** Investment holding and management services 100% Assembly Services Sdn. Bhd. Assembler of vehicles 100% Perodua Sales Sdn. Bhd. Marketing and distribution of motor vehicles, related spare parts and other related activities 100% Automotive Industries Sdn. Bhd. Manufacturer and supplier of exhaust systems 49% 51% Perodua Auto Corporation Sdn. Bhd. Investment holding 65% Toyota Boshoku UMW Sdn. Bhd. Manufacturer of car seats 49% 51% Perodua Manufacturing Sdn. Bhd. Manufacturer and assembler of motor vehicles 30% UMW Toyotsu Motors Sdn. Bhd. Sales and service of Toyota and Lexus vehicles and parts 49% Perodua Engine Manufacturing Sdn. Bhd. Manufacturer and dealer in component parts including engines, couplings and transmission components 30% Toyota Capital Malaysia Sdn. Bhd. Hire purchase financing of Toyota customers 30% Ingress Technologies Sdn. Bhd. Manufacture complete door assemblies and press parts * ** 39% Toyota Motor Corporation 10% Toyota Tsusho Corporation 20% Daihatsu Motor Co., Ltd 20% MBM Resources Bhd 10% PNB Equity Resource Corporation Sdn Bhd 4.2% Mitsui & Co., Ltd 2.8% Mitsui & Co., ( Asia Pacific) Pte Ltd 5% Daihatsu (Malaysia) Sdn Bhd Page 13

14 TOYOTA MANUFACTURING PLANT CURRENT Started operations in Land area - 129,500m². Toyota Boshoku Build up area - 94,600m². Located in Shah Alam, Selangor. It currently assembles Vios, Camry, Hilux, Fortuner, Innova and Hiace. Annual capacity (No 242 days/year) - 75,700 units. Corolla Room Expected to start operations in early Plant & land size - 670,000 m². NEW Location - Bukit Raja Industrial Estate, Klang. Total Investment - RM2 billion Annual Capacity - 50,000 units. (Initial) 14

15 TOTAL INDUSTRY VOLUME (TIV) TIV % Change Over Previous Year RHS Total Industry Volume Unit Sales LHS 1,200,000 1,000, % -11.1% -0.7% 12.5% -2.0% 12.7% -0.8% 4.6% 4.5% 1.6% 0.0% 20% 0% 800, , , , , , , , , , , , ,674-20% -40% 400,000-60% 200,000-80% % Target for 2016 is 650,000 units (-2.5% growth) due to low consumer sentiment. It was revised to 580,000 (-13%) units on 20 July 2016 due to lower sales in 1H

16 LEXUS & TOYOTA UMW Toyota Motor Market Share Of TIV RHS UMW Toyota Motor Unit Sales LHS 200, , ,000 50, % 16.5% 16.7% 16.9% 17.0% 15.3% 15.2% 15.6% 14.8% 14.1% 14.4% 101, ,622 91,003 81,808 82,188 82,089 91,990 88,662 92, ,636 95, % 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Vios was our top selling model in 2015 with 36% of total Toyota sales. Hilux was second with 30%. Lexus achieved a new record in 2015 with 2,101 units sold. Importation of CBU cars and CKD components are transacted in US Dollar. The target for 2016 was revised to 70,000 units in July

17 AUTOMOTIVE DIVISION Lexus models in Malaysia CBU from Japan CBU Completely Built Unit IS Variant: 4 Price Range: RM298k RM452k ES Variant: 3 Price Range: RM275k RM371k 2 nd top selling model in 2015 with 33% of total Lexus sales GS Variant: 7 Price Range: RM439k RM1,070k LS Variant: 4 Price Range: RM844k RM1,185k NX Variant: 5 Price Range: RM310k RM398k Top selling model in 2015 with 55% of total Lexus sales RX Variant: 6 Price Range: R389k RM520k LX Variant: 1 Price Range: R924k CT Variant: 3 Price Range: R276k RM366k RC Variant: 2 Price Range: RM529k RM787k LC

18 AUTOMOTIVE DIVISION Toyota models in Malaysia CKD Completely Knock Down CBU Completely Built Up Vios (CKD) Variant: 5 Price Range: RM78k RM98k Top selling model in 2015 with 36% of total Toyota sales. Corolla Altis (CBU Thailand) Variant: 4 Price Range: RM121k RM147k Camry (CKD) Variant: 2 + hybrid Price Range: RM155k RM175k Alphard (CBU Japan) Variant: 2 Price Range: RM420k RM520k Vellfire (CBU Japan) Variant: 1 Price Range: RM355k Sienta (CBU Indonesia) Variant: 2 Price Range: R93k RM100k Avanza (CBU Indonesia) Variant: 4 Price Range: R72k RM83k Innova (CKD) Variant: 4 Price Range: R104k RM115k Hilux (CKD) Variant: 6 Price Range: R90k RM134k 2 nd top selling model in 2015 with 30% of total Toyota sales. Fortuner (CKD) Variant: 2 Price Range: R187k RM200k Rush (CBU Indonesia) Variant: 2 Price Range: R104k RM109k Hiace (CKD) Variant: 3 Price Range: R95k RM109k

19 PERODUA Perodua Market Share Of TIV RHS Perodua Unit Sales LHS 350,000 40% 300, % 33.3% 30.5% 31.1% 31.2% 30.0% 30.1% 29.9% 29.3% 30.1% 250, , , % 139, , , , , , , , , , ,307 30% 20% 100,000 10% 50, % Perodua maintained the No. 1 position in overall market share since 2006 Currently exporting to six countries, namely, Indonesia, Singapore, Mauritius, Fiji, Sri Lanka and Brunei. Perodua s first sedan, Bezza, was launched on 21 July Target for 2016 is 216,000 units. 19

20 AUTOMOTIVE DIVISION Perodua models in Malaysia - CKD CKD Completely Knocked Down Bezza Variant: 5 Price Range: RM37k RM51k Launched 21 July 2016 Target: 7,600 units per month in 2016 Alza Variant: 5 Price Range: RM52k RM65k Axia Variant: 6 Price Range: R24k RM42k Myvi Variant: 5 Price Range: R41k RM58k

21 UMW GROUP S MARKET SHARE Units & Market Share (%) YTD June Brand YTD June Market Share % Units Market Share % Units Proton Honda Nissan Mazda Hyundai, Kia Others ,727 39,654 21,148 7,346 4,722 41, ,175 94,902 47,235 14,325 10,960 87,909 Total , , , % Perodua 97, % , % UMW Toyota 27, % Others 150, % , % UMW companies sold 309,168 units in 2015 with a market share of 46%. 21

22 Automotive Division Challenges Low consumer sentiment due to rising cost of living, slowdown in economy, low oil price environment Tightening of lending guidelines by the financial institutions Aggressive marketing strategy by the industry players Weakening Ringgit against the US Dollar Our strategy Introduction of new models:- Toyota Hilux (launched on 5 May) Toyota Fortuner (launched on 5 May) Perodua Bezza (launched on 21 July) Toyota Alphard (launched on 4 August) Toyota Vellfire (launched on 4 August) Toyota Sienta (targeted for 3Q16) Toyota Innova (targeted for 4Q16) Toyota Vios face-lift (targeted for 4Q16) Toyota Camry face-lift (targeted for 4Q16) Set up a second plant to increase productivity (higher automation) and introduce more models Kaizen (continuous improvement) and cost reduction activities Continuously increase local content 22

23 EQUIPMENT Operations

24 EQUIPMENT DIVISION UMW represents all of the above principals for some of the world s most recognised products in:- Agriculture Construction Forestry Mining Industrial and manufacturing Industrial cleaning food and beverages, material handling and logistics 24

25 HEAVY EQUIPMENT Myanmar Malaysia Singapore Since 1965 Papua New Guinea Komatsu franchise in Malaysia, Singapore, Myanmar and Papua New Guinea Has strong presence in Myanmar, supplying equipment to the jade mining and resource mining sectors. Since 1979 Since 1996 Delivered 38 units of Rosenbauer Panther Airport Fire Fighting Vehicles to MAHB from

26 INDUSTRIAL EQUIPMENT TOYOTA FORKLIFT FRANCHISE China Shanghai, Zhejiang Vietnam Malaysia Brunei Singapore Strong market leadership position No. 1 position in Malaysia since Toyota forklift maintained its 50% market share in Malaysia s material handling equipment business. Toyota Forklifts UMW is one of the Top 5 Distributors in the world. Globally, UMW is the only Diamond member (the highest elite tier) in the Premier Club Recognition Programme, awarded by Toyota Material Handling International (TMHI). Also awarded the Undisputed Performance Award by Toyota Material Handling International for outstanding performance. Have ventured into leasing of Toyota forklifts. 26

27 MARINE AND POWER EQUIPMENT CompAir Gas Compressor Honda Power Products Cameron Centrifugal Compressor Mitsubishi & GE Marine Engines Cameron Reciprocating Compressor 27

28 Equipment Division Challenges Latest Our strategy Business communities generally scaling down capital expenditure. Cautionary operating expenditure in the current low commodity prices. Slowdown in property development and mining sectors has suppressed demand. Change of government in Myanmar has led to uncertainties in policies related to the jade mining industry. Higher selling price due to the appreciation of US Dollar and Japanese Yen against Ringgit. A record-breaking number of projects were awarded for the construction sector in 1H16. Key projects include MRT2, Pan Borneo Highway, LRT3. Aggressive marketing activities to compete for sales from the construction industry. To explore supplying Komatsu equipment to other industries in Myanmar. Industrial equipment will continue to focus on expanding the equipment rental business. Process improvement and cost reduction activities 28

29 OIL & GAS Operations 29

30 UMW OIL & GAS CORPORATION BERHAD Listed On Bursa Malaysia (55.73% subsidiary) A Malaysian-based multinational oil & gas ( O&G ) player focused on providing drilling and oilfield services for the upstream sector of the O&G industry. Drilling Services 8 Offshore Rigs 1 Semi-submersible NAGA 1 7 Jack-ups UMW NAGA 2, UMW NAGA 3, UMW NAGA 4, UMW NAGA 5, UMW NAGA 6, UMW NAGA 7, UMW NAGA 8 5 Hydraulic Workover Units UMW GAIT I, UMW GAIT II, UMW GAIT III, UMW GAIT V, UMW GAIT VI Oilfield Services 6 Plants 1 West Plant & 1 East Plant in Labuan, Malaysia 1 Sattahip & 1 Songkhla, Thailand 1 Tianjin, China 1 Turkmenbash, Turkmenistan Segmental revenue breakdown for FY2015 Drilling services 96% Oilfield services 4% 30

31 DRILLING SERVICES - Malaysia s only owner-operator of premium jack-up drilling rigs. SEMI- SUBMERSIBLE DRILLING RIG CUSTOMER CONTRACT DURATION CONTRACT AWARDED NAGA 1 PETRONAS Carigali Sdn. Bhd year August 2011 JACK-UP DRILLING RIG UMW NAGA 2 UMW NAGA 3 UMW NAGA 4 UMW NAGA 5 CUSTOMER CONTRACT DURATION CONTRACT AWARDED Bidding for contracts Bidding for contracts Bidding for contracts Bidding for contracts UMW NAGA 6 PETRONAS Carigali Sdn. Bhd. 2 years 31 May year option for renewal UMW NAGA 7 PETRONAS Carigali Sdn. Bhd. 7 firm wells; 1+1 option well for renewal UMW NAGA 8 SapuraKencana Petroleum Bhd. 18 firm wells; 3 option wells for renewal 15 October September

32 UMW Oil & Gas Corporation Berhad Challenges Low oil price environment due to oversupply/low demand Lesser number of drilling contracts awarded; more rigs available Charter rates have dropped between 30% and 40% High financing cost as our rigs are relatively new Our advantage Malaysia s only owner-operator of jack-up drilling rigs Direct negotiations with PETRONAS for contracts Have worked for major industry players in ASEAN Young fleet of jack-up drilling rigs (average 2 years) Our strategy Aggressive marketing activities in the ASEAN region Established an office in the Middle-east to bid for contracts in the region Cost reduction activities 32

33 MANUFACTURING & ENGINEERING Operations

34 KEY PRODUCTS AEROSPACE COMPONENT LUBRICANTS AUTO COMPONENTS Fan Case Lubricants & Fluids Shock Absorbers & Power Steering Lubricants & Fluids (China) Automotive Components Fluids & Chemicals 34

35 MANUFACTURE OF AERO ENGINE FAN CASES UMW M&E SDN BHD Component Part Manufacturing for RR s Most Advanced Passenger Aircraft Engines UMW as the 1 st Malaysian Tier 1 Supplier to Rolls Royce The project is for the manufacture of fan cases for the Trent 1000 aero engines for 25 years (Trent 7000 engines-later) for Rolls-Royce s ( RR ) supply chain. Both Trent engines are the most advanced in aero engine technology, with increased fuel efficiency and noise reduction. UMW will be the only supplier ( single-source supplier ) for fan cases for both the engines. Be Part of Asian Supply Chain Development Single Source Final Assembly of the Trent 1000 and Trent 7000 engines in Singapore The manufacturing plant will be located in Serendah, Selangor. The first delivery is targeted for October

36 LUBETECH SDN BHD (MALAYSIA) UMW LUBRICANT INTERNATIONAL SDN BHD (MALAYSIA) LUBRITECH LIMITED (CHINA) UMW ADVANTECH SDN BHD Manufacturing of automotive components in Selangor Manufacturing and distribution in Selangor In-house brand Spain's largest integrated oil & gas company American oil company * Full capability at TBA Manufacturing and distribution in Guangdong KYB-UMW MALAYSIA SDN BHD KYB-UMW STEERING MALAYSIA SDN BHD Manufacturing of Automotive shock absorbers in Selangor Shock Absorbers for 2-wheelers Shock Absorbers for 4-wheelers * Full capability at 50 mil/liters p.a. Power Steering Pump Power Steering System 36

37 Manufacturing & Engineering Division Challenges Negative growth in the automotive industry will affect the demand for auto components. Replacement market is still sluggish due to soft consumer sentiment. Slowdown in China economy will impact lubricants demand. Local lubricants market is also expected to be slow-moving. Our strategy Intensive trade, consumer promotions and brand awareness activities. Enter into high value manufacturing The fan case project for Rolls-Royce is our first phase Actively sourcing for more high value manufacturing projects 37

38 OTHERS

39 Others Oil & Gas-related companies that are not part of the listed company. INDIA Onshore Drilling Services Jaybee Drilling Pvt. Ltd. 3 onshore drilling rigs Manufacture of OCTG and line pipes United Seamless Tubulaar Pvt. Ltd. Seamless steel pipes OMAN Onshore Drilling Services Arabian Drilling Services LLC 7 onshore drilling rigs MALAYSIA Oilfield Services UMW Synergistic Generation Sdn. Bhd. Total power solutions provider Supply of Oilfield Products UMW Oilfield International (M) Sdn. Bhd. Trading UMW Oilfield International (L) Ltd. CHINA Manufacture of OCTG and line pipes Shanghai BSW Petro-Pipe Co. Ltd. SSAW line pipes Zhongyou BSS (Qinhuangdao) Petropipe Co. Ltd. LSAW and SSAW line pipes Jiangsu Tube-Cote Shuguang Coating Co. Ltd. Sichuan Haihua Petroleum Steel Pipe Ltd. Oilfield Services Pipe coating Electric Resistance Welded pipes Shanghai Tube-Cote Petroleum Pipe Coating Co. Ltd. AUSTRALIA Supply of Oilfield Products PFP Holdings Pty. Ltd. (offices in Malaysia, China, Singapore, Taiwan, China) Trading 39

40 Others Challenges Low oil price environment due to oversupply/low demand Low demand for drilling rigs, pipes and related services Slowdown in new pipeline projects in China Our strategy Bidding for more contracts for onshore drilling rigs in Oman Aggressive marketing activities in the Middle-east and US for OCTG and pipes Continue to nurture and enhance the value of these assets Monitor the progress for potential value creation exercise 40

41 THANK YOU Roza Shahnaz Omar Director, Group Strategy UMW Corporation Sdn. Bhd. S. Vikneshwaran Head, Investor, Media Relations & Sustainability Telephone: Corporate Portal This material is proprietary and is prepared specifically for the recipient s reference. The information contained herein is not to be distributed without the consent of. Any recommendation or views contained in this document do not have regard to specific investment objectives, financial situation and the particular needs of any specific audience. The content furthermore is believed to be correct at the time of the issue of this document, and is not and should not be construed as an offer or a solicitation of any offer to buy or sell any securities. Nor does this document purport to contain all the information a prospective investor may require.