MBM Resources Berhad 17 th Annual General Meeting 14 June 2011 The Learning Academy, Federal Auto Holdings Berhad, Glenmarie 1
Agenda 1) Corporate Structure 2) 2010 Performance 3) Group Corporate Developments 4) Aspiration and Expansion Note : Please read our disclaimer before use of this material 2
Corporate Structure MOTOR TRADING MANUFACTURING 71.5% 20% 78% 100% 5.0% 42% 100.0% 100% 3
MBMR Corporate Structure Business Partners MBMR Member of Bursa Malaysia Securities Main Market 71.5% Daihatsu (Malaysia) Sdn. Bhd. 100% DMM Sales Sdn. Bhd. Daihatsu vehicles distributorship Operates 11 branches and 12 workshops under Daihatsu Hino trucks and buses dealership Operates 17 dealerships and 12 workshops under Perodua Daihatsu Motor Corporation, Japan Mitsui & Co. Limited, Japan Hino Motors (Malaysia) Sdn. Bhd. Perodua Sales Sdn. Bhd. 100% Federal Auto Holdings Berhad Volvo 6 dealerships Mitsubishi 3 dealerships Volkswagen 3 dealerships Volvo Cars Malaysia Sdn. Bhd Mitsubishi Motors Malaysia Sdn. Bhd. Volkswagen Group Malaysia Sdn. Bhd. 23.6% * Perusahaan Otomobil Kedua Sdn. Bhd. Manufacturer and distributor of Perodua vehicles Operates 41 branches under Perodua Daihatsu Motor Corporation, Japan Mitsui & Co. Limited, Japan UMW Holdings Berhad PNB Equity Resources Sdn. Bhd. 42% Hino Motors (Malaysia) Sdn. Bhd. Distributor of Hino vehicles Operates 2 branches and 2 workshops under Hino Hino Motors Limited, Japan 78% Oriental Metal Industries (M) Sdn. Bhd. Manufacturer of steel rims OEM wheel module assembly Toyota Tsusho Corporation, Japan Central Motor Wheels Limited, Japan 100% Summit Vehicles Body Works Sdn. Bhd. Fabrication of trailers and rigid body for trucks * Effective holdings 4
2010 Performance 5
Market Performance Record Sales by Registration 13% 548,115 536,905 490,768 487,176 28% 19,685 18,447 18,677 17,789 605,156 22,839 2006 2007 2008 2009 2010 Passenger Commercial Group's Total Sales Source : Malaysian Automotive Association, 2006-2010 6
Group Financial Highlights Record Revenue and Profit RM Mil YTD 2010 YTD 2009 % Changes Revenue 1,528.49 1,101.64 + 38.7 Operating profit * 53.41 31.14 + 71.5 Share of assoc. results 118.99 54.11 + 119.9 Profit before tax 172.40 85.25 + 102.2 Results from disc. op. 1.12 5.90 (81.0) Net profit attributable to owner of Company 142.14 66.53 + 113.6 EPS (sen) 58.60 27.49 + 113.2 Dividend (sen) 13.00 6.00 + 116.7 * Note : Operating profit from Continuing Operations, after Finance costs and Interest Income 7
Group Financial Highlights Strong financial position RM Mil 31 Dec 2010 31 Dec 2009 Associates 619.78 540.78 Non-current assets 185.34 201.46 Inventories 199.03 133.94 Cash and bank 182.82 151.42 Total borrowings (38.68) (31.08) Net Assets 1,018.22 894.27 Net Assets per share (RM) 4.20 3.69 10
Group Financial Highlights Key Ratios 2010 2009 Financial Ratios (%) Operating profit on revenue 3.4 2.8 Return on equity 13.9 7.4 Return on total assets 10.6 5.8 Investment Ratios * Price-earnings ratio (times) 5.5 11.7 Price-book ratio (times) 0.8 0.9 Dividend yield (%) 3.1 1.9 * Based on closing price as of 10 June 2011 of RM3.21 11
Group Corporate Developments 12
Year 2010 at a Glance Feb 2010 : Volkswagen PJ and JB and Mitsubishi PJ operational Mar 2010 : Obtained exclusive distributorship of Heico Sportiv and ABT Sportsline Mar 2010 : Daihatsu (Malaysia) appointed Hino dealer Jun 2010 Oct 2010 : Disposed WSA Capital Corporation : Proposed acquisition of Lion Motor and Kinabalu Motor Assembly 13
Aspiration and Expansion 14
A S P I R A T I O N 15
Diversity Brands under the Group 16
Expansion Capital Expenditure (RM Mil) 250.0 Planned 105.4 38.4 2001-05 2006-10 2011-15 17
Distribution/Retail/Dealerships 18
Our Networks DMSB Daihatsu Sales Branch DMSB Daihatsu Service Branch DMSB Hino Sales Branch 19
Our Network DMMS Perodua Sales Branch DMMS Perodua Service Branch 20
Our Networks Federal Auto Cars Volvo Outlets F.A. Wagen Volkswagen Outlets F.A. Automobiles (Ipoh) Mitsubishi Outlets 21
Positioning with the Brands DMMS Perodua Market Share 9% 22
Positioning with the Brands Volvo Market Share 80% 23
Positioning with the Brands VW Market Share 27% 24
Positioning with the Brands MIT Market Share 7% 25
Diverse Income Stream After Sales 26
Diverse Income Stream Body and Paint 27
Diverse Income Stream Sports Tuning - FAST 28
Expanding Manufacturing Division Planned investments in 1) Growing Auto Parts business 2) Vehicle Assembly 29
Our Assets Maximise commercial value of owned properties E.g. Lot 15 to be redeveloped into a 24-storey office block 30
Our Assets Maximise utilisation of properties redevelop for business expansion E.g. Future MBMR s Multi-brand Auto Village 31
VEHICLE ASSEMBLY CREATING ENTERPRISE VALUE BODY AND PAINT CENTRES AUTO PARTS MANUFACTURING EXPANDING THE NETWORK OF 3S CENTRES 32
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. 33
Thank You For Your Attendance Level 2, Lot 43, Jalan Pelukis U1/46, Section U1, 40150 Shah Alam, Selangor Darul Ehsan. www.mbmr.com.my 34