RESILIENCE MBM RESOURCES BERHAD ( V) Analyst Briefing 24 August 2017

Transcription

1 RESILIENCE MBM RESOURCES BERHAD ( V) Analyst Briefing 24 August

2 DISCLAIMER The information and opinions contained in this presentation are provided as at the date of the document. Certain statements in this presentation, particularly those regarding the future prospects of MBM Resources Berhad ( MBMR or the Company ), returns, pricing, acquisitions, divestments, industry growth or other trend projections are or may be forward-looking statements. These forward-looking statements are not historical facts, nor are guarantees of future performance. Such statements are based on current expectations and belief and, by their nature, are subject to a number of known and unknown risks and uncertainties which may cause actual results, prospects and developments of MBMR to differ materially from those expressed or implied by these forward-looking statements. Except as required by any applicable law or regulation, MBMR expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this presentation to reflect any change in MBMR s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. All information in the presentation remain as the property of MBMR and may not be reproduced or recorded without prior written permission of the Company. Nothing contained in the presentation constitutes or shall be deemed to constitute an offer or invitation to invest in or otherwise deal in any shares or other securities of MBMR. 2

3 Agenda 1) Market Performance 2) Group Financial Highlights and Performance Review 3) Outlook 3

4 Market Performance 4

5 Market Performance Persistently weak TIV 75, 7, Pre-Price increase Spike Year end sales 65, 6, 55, 5, 45, Average line 4, 35, Source : Malaysian Automotive Association, (Sales by registration) 5

6 Market Performance resulting in TIP being scaled down 6, 55, 5, 45, Average line 4, 35, 3, Source : Malaysian Automotive Association, (Production Volume) 6

7 Performance Against Market Sales by Registration Growth Rate Decline in Group Sales Vs. Increase in TIV 3.3% 6.1% 4.6% 6.5% 7.3% -.4% -2.9% -4.4% -6.3% -1.2% -14.5% -13.8% -18.7% -19.7% -2.8% -22.% -8.6% -12.4% -3.4% -1.8% -1.9% -3.2% -12.% -16.6% YTD 216 YTD 217 1Q 216 2Q 216 3Q 216 4Q 216 1Q 217 2Q 217 TIP TIV Group's Total Sales Source : Malaysian Automotive Association,

8 Market Performance National Makes Performance Sales by Registration (YTD) Proton % YTD Jun 216 YTD Jun 217 Perodua % Group % + 3.3% TIV Thousands Source : Malaysian Automotive Association, (Sales by registration) 8

9 Market Performance Passenger Vehicles Market Share (Sales by registration) Mazda 1.8% Hyundai.8% Nissan 4.% Others 7.5% 99,675 Total : 255,749 Perodua 39.% Perodua and Honda continue to be market leader Hyundai 1.1% Nissan 7.2% Mazda 2.9% Others 7.5% Total :244,357 97,37 Perodua 39.8% 52,527 Honda 2.5% 23,947 Toyota 9.4% Mitsubishi.6% YTD Jun 217 Proton 15.4% Volkswagen 1.1% 39,393 Source : Malaysian Automotive Association, Honda 16.2% 39,654 Toyota 7.7% Mitsubishi.9% 18,854 YTD Jun 216 Proton 14.6% Volkswagen 1.8% 35,727 9

10 2/1/215 22/1/215 13/2/215 9/3/215 27/3/215 16/4/215 8/5/215 28/5/215 17/6/215 7/7/215 28/7/215 17/8/215 7/9/215 29/9/215 2/1/2 9/11/215 3/11/2 18/12/2 12/1/216 3/2/216 25/2/216 16/3/216 5/4/216 25/4/216 16/5/216 3/6/216 24/6/216 18/7/216 5/8/216 25/8/216 19/9/216 1/1/2 28/1/2 16/11/2 6/12/216 28/12/2 18/1/217 1/2/217 2/3/217 22/3/217 11/4/217 4/5/217 25/5/217 15/6/217 7/7/217 27/7/217 16/8/217 Foreign Currency Ringgit strengthen further on YEN and USD YEN USD USD and Yen Spot Rates movement, January 215 to June Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2 17 up to 23 Aug 217 1

11 Group Financial Highlights and Performance Review 11

12 Highlights of Q2 217 Against Q2 216 The Group's revenues declined 5.4% mainly due to lower vehicle sales The joint venture s results narrowed due to lower demand Contribution from associates was lower Profit before tax decreased by 16.% Declared interim dividend of 1.5 sen per share 12

13 Group Financial Highlights Results Quarter RM Mil Q2 217 Q2 216 % Changes Revenue - On going business (5.4) - One-off property contribution Total revenue (5.4) Operating profit - On going business (1.66) (1.79) One-off property contribution Total operating profit (1.66) (1.79) + 7. Net finance costs (3.3) (3.5) +.6 Share of JV's results (49.5) Share of assoc. results (1.2) Profit before tax (16.) Profit attributable to owner's of Co (14.1) EPS (sen) (14.1) 13

14 Highlights of Q2 217 Against Q1 217 Overall lower group s vehicles sales but cushioned by higher production volume from its alloy wheel plant in current quarter has resulted lower revenue by RM14.2 million or 3.4% PBT reduced by 12.4% or RM2.8 million at RM19.8 million mainly due to lower contribution from joint venture and associates but cushioned by lesser losses in the alloy wheel plant 14

15 Group Financial Highlights Results Quarter RM Mil Q2 217 Q1 217 % Changes Revenue - On going business (3.5) - One-off property contribution Total revenue (3.5) Operating profit - On going business (1.66) (2.87) One-off property contribution Total operating profit (1.66) (2.87) Net finance costs (3.3) (2.99) + (1.1) Share of JV's results (44.9) Share of assoc. results (11.1) Profit before tax (12.4) Profit attributable to owner's of Co (16.8) EPS (sen) (16.9) 15

16 Group Financial Highlights Results YTD RM Mil Jun 217 Jun 216 % Changes Revenue - On going business One-off property contribution Total revenue Operating profit - On going business (4.53) (6.52) One-off property contribution Total operating profit (4.53) (6.52) Net finance costs (6.2) (6.7) +.7 Share of JV's results (23.1) Share of assoc. results (7.5) Profit before tax (6.8) Profit attributable to owner's of Co (4.4) EPS (sen) (4.4) 16

17 Group Financial Highlights Financial Position RM Mil 3 Jun Dec 216 Joint venture Associates 1,57.8 1,59.89 Goodwill Other Non-current Assets* Inventories Cash and bank Short term borrowings (168.21) (168.5) Net Other CA/(CL) (37.68) Total 2, ,86.78 * Include PPE, Prepaid Lease Payments, Investment Properties 17

18 Group Financial Highlights Financial Position RM Mil 31 Jun Dec 216 Share capital Reserves 1, , Non-controlling interest Long term borrowings Deferred tax Prov. for retirement benefits Total 2, ,86.78 NA per share (RM) NTA per share (RM) Debt / Equity ratio (%)

19 Operating & Financial Review 19

20 Motor Trading 2

21 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Vehicle Sales Group s vehicle sales in units, 215 to 217 3, 2,8 Pre-Price increase Spike Year end sales 2,6 2,4 2,2 2, 1,8 Average line 1,6 1,4 21

22 Aftersales Throughput Group Service Throughput in units, 215 to % y-on-y 5 46,518 45,445 47,547 48,498 48,41 45,498 47,15 46,973 48,34 46, Q1 215 Q2 215 Q3 215 Q4 215 Q1 216 Q2 216 Q3 216 Q4 216 Q1 217 Q

23 Operating & Financial Review DMSB- Daihatsu Vehicle Unit Sales (Invoiced) -48.9% y-o-y Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 23

24 Operating & Financial Review DMSB - Hino Vehicle Unit Sales -26.% y-o-y Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 24

25 Operating & Financial Review DMMS - Perodua Vehicle Unit Sales -5.6% y-o-y 8, 7, 6, 5, 5,897 5,415 5,525 6,34 5,179 5,432 5,626 5,89 5,122 4,897 11,312 1,611 1,19 12, 1, 8, 4, 6, 3, 4, 2, 1, 2, Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 25

26 Operating & Financial Review FAC - Volvo Vehicle Unit Sales % y-o-y Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 26

27 Operating & Financial Review FAW - Volkswagen Vehicle Unit Sales -46.3% y-o-y Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 27

28 Operating & Financial Review FAAI - Mitsubishi Vehicle Unit Sales % y-o-y Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 28

29 Auto Parts Manufacturing 29

30 Operating & Financial Review OMI Steel Wheels Auto Parts Manufacturing Unit Sales ( ) +3.3% y-o-y Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 3

31 Operating & Financial Review OMI Tyre Assembly Auto Parts Manufacturing Unit Sales ( ) -.5% y-o-y 9 1,292 1, ,74 1,69 1,2 1, Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 31

32 Operating & Financial Review OMIA Alloy Wheels Auto Parts Manufacturing Unit Sales ( ) % y-o-y Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 32

33 Operating & Financial Review HASB NVH Products Auto Parts Manufacturing Unit Sales ( ) -33.6% y-o-y Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 33

34 Joint Venture 34

35 Operating & Financial Review AHSB - Seatbelts Auto Parts Manufacturing Unit Sales ( ) +6.3% y-o-y Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 35

36 Operating & Financial Review AHSH - Airbags Auto Parts Manufacturing Unit Sales ( ) -12.2% y-o-y Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 36

37 Operating & Financial Review AHSB Steering Wheels Auto Parts Manufacturing Unit Sales ( ) +24.7% y-o-y Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 37

38 Associated Companies 38

39 Operating & Financial Review Perodua Vehicle Unit Sales (Invoiced) +5. % y-o-y 7, 116,76 12, 65, 6, 55, 5, 55,241 61,465 49,21 49,15 55,759 46,721 51,892 52,899 57,484 5,169 12,48 17,653 11, 1, 9, 8, 7, 45, 6, 4, 5, 35, 4, 3, Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 3, 39

40 Operating & Financial Review Perodua Model Mix Alza 14.1% Alza 19.2% Axia 31.5% Myvi 26.9% Myvi 26.8% Bezza 27.5% YTD Jun 217 Axia 54.% YTD Jun 216 4

41 Operating & Financial Review Hino Motors Sales Vehicle Unit Sales (Invoiced) +16.4% y-o-y 2, 1,922 2,137 2,171 2,526 2,5 1,642 1,56 2, 1,5 1,376 1, 969 1, ,29 1,15 1,5 1, Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q216 Q3'16 Q4'16 Q1'17 Q2'17 YTD'15 YTD'16 YTD'17 41

42 Outlook 42

43 Outlook Intense competition, uncertainties in the industry environment and strict hire-purchase approvals will continue to be the headwinds to the Group s performance Continue to improve the production efficiency at our manufacturing plants and to secure higher volume to achieve more sustainable margin Ongoing review of group s cost structures and new model launches by the brands within the Group are expected to contribute positively 43

44 Outlook New Model Launched in First Half 217 Perodua Axia (facelift) 2 January 217 Volkswagen Tiguan 5 April 217 Perodua Bezza (with new rear skirt) 14 April

45 Outlook New Model Launched in First Half of 217 Volvo S9 / V9 (CBU) 24 March 217 Volvo V4 (facelift) 19 June

46 Outlook Expected New Model Launches in Second Half of 217 Volkswagen Golf GP Perodua New Myvi Volkswagen CC Volvo S9 T8 (CKD) 46

47 RESILIENCE MBM Resources Berhad ( V) 23-1, Level 23, Menara MBMR, 1 Jalan Syed Putra, 58 Kuala Lumpur. T: F: