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3UMW HOLDINGS BERHAD
OUR JOURNEY
Enhancing our capabilities
Founded in 1917 Automotive Assembly Aerospace
Bicycle repair shop >36 years with Toyota
>25 years with Daihatsu
Fan Case Manufacturer
for Rolls-Royce
Tier 1 supplier
Laying the building blocks for excellence
UMW HOLDINGS BERHAD
Equipment Distribution
>50 years with Komatsu
>50 years with TICO
4UMW HOLDINGS BERHAD
58.42%
10.81%
6.36%13.84%
10.57%
OUR SHAREHOLDERS
As at 28th September 2018
28/09/2018
Market Capitalisation
RM 5.9b
PNB
EPF
Other Local Shareholders KWAP
Foreign Shareholders
▪ Permodalan Nasional Berhad & PNB
Managed Unit Trust Funds, 58.42%
▪ Employees Provident Fund Board,
10.57%
▪ Foreign Shareholders, 10.81%
▪ Other Local Shareholders, 13.84% ▪ Kumpulan Wang Persaraan
(Diperbadankan), 6.36%
UMW HOLDINGS BERHAD
5UMW HOLDINGS BERHAD
OVERVIEW OF OUR BUSINESSES
01 02 03
04
• Manufacture
• Assembly
• Distribution
• Sales &
service
Automotive Equipment M&E
Others
• Distribution
• Trading
• Leasing
• After-sales
service
• Blending &
distribution
of lubricants
• Manufacture
of
automotive
components
• Manufacture
of fan case
• Manufacture
of OCTG and
Line pipes
• Land rigs
• Trading
Oil & Gas - Unlisted
UMW HOLDINGS BERHAD
6UMW HOLDINGS BERHAD
INTERNATIONAL PRESENCE
10 countries
China
Malaysia
Indonesia
Myanmar
India
Papua
New Guinea
Singapore
Australia
Oman
Automotive
Equipment
Manufacturing & Engineering
Oil & Gas
Vietnam
8,346▪ Employees
AA2▪ RAM
▪ Credit Rating
UMW HOLDINGS BERHAD
8UMW HOLDINGS BERHAD
UMW AUTOMOTIVE SEGMENT
UMW Toyota Motor
Sdn. Bhd.*
Manufacturer and dealer in
component parts including
engines, couplings and
transmission components
Perodua Engine Manufacturing
Sdn. Bhd.
Perodua Manufacturing
Sdn. Bhd.
Perodua Sales
Sdn. Bhd.
30%
Toyota Boshoku
UMW Sdn. Bhd.
Automotive Industries
Sdn. Bhd.
Assembly Services
Sdn. Bhd.
Perusahaan Otomobil Kedua
Sdn. Bhd.**
Manufacturer and assembler
of motor vehicles and other
related activities
Investment holding and
provision of management and
administrative services
Marketing and distribution of motor
vehicles, related spare parts and
other related activities
Manufacturer
of car seats
Manufacturer and
supplier of exhaust
systems
Assembler of
vehicles
Ingress Technologies
Sdn. Bhd.
Manufacturer of complete door
assemblies and press parts
UMW Toyotsu Motors
Sdn. Bhd.
Sales and service of
Toyota and Lexus
vehicles and parts
65%
100%
100%
49%
49%
49%
100%
30%
Investment holding,
importation and distribution
of Toyota vehicles and
related parts
Investment holding and
provision of management and
administrative services
39% Toyota Motor Corporation10% Toyota Tsusho Corporation
4.2% Mitsui & Co., Ltd2.8% Mitsui & Co., ( Asia Pacific) Pte Ltd5% Daihatsu (Malaysia) Sdn Bhd
30% Toyota Capital Malaysia
Sdn. Bhd.
Hire purchase
financing of Toyota
customers
*
51% 38%
51%
51%
******* 41% Daihatsu Motor Co., Ltd6% Mitsui Co., Ltd 4% Mitsui & Co., ( Asia Pacific) Pte Ltd
20% Daihatsu Motor Co., Ltd20% MBM Resources Bhd10% PNB Equity Resource
Corporation Sdn Bhd
**
Perodua Global Manufacturing
Sdn. Bhd.49%
51%
Daihatsu Perodua Engine
Manufacturing Sdn. Bhd.
49% 51% Daihatsu Motor Co., LtdManufacturer of engine and engine components for Energy Efficient Vehicles
Manufacturer and assembler
of motor vehicles and other
related activities
Perodua Auto
Corporation Sdn. Bhd.***
9UMW HOLDINGS BERHAD
• Lower sales in 2017 were mainly due to weak consumer sentiment and stringent lending guidelines
imposed by the financial institutions.
• TIV stood at 423,730 units in the first eight months of 2018. MAA revised its TIV forecast for 2018 to
585,000 units (+1.5% growth) from 590,000 units previously.
548,115 536,905605,156 600,123 627,753 655,793 666,465 666,674
580,124 576,635
423,730
12.5%
-2.0%
12.7%
-0.8%4.6% 4.5%
1.6%0.0%
-13.0% -0.6%
-75.0%
-65.0%
-55.0%
-45.0%
-35.0%
-25.0%
-15.0%
-5.0%
5.0%
15.0%
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 8M18
MAA 2018 TIV forecast
585,000 units
TOTAL INDUSTRY VOLUME (TIV)
TIV % Change Over Previous Year RHS
UMW HOLDINGS BERHAD
Source: Malaysian Automotive Association
Total Industry Volume (“TIV”) – Unit Sales LHS
10UMW HOLDINGS BERHAD
LEXUS & TOYOTA
• Distributes 6 CKD and 7 CBU Toyota models. Lexus models are all CBU.
• Top selling Toyota models in 2017 – Vios (35%) and Hilux (27%).
• Importation of CBU cars and CKD components are transacted in US Dollar.
• The all-new models launched in 2018 – Toyota Harrier (January), Toyota C-HR (March) and
Lexus LS 500 (March).
101,839
82,08991,990 88,662
106,622
92,521103,636
95,861
65,11070,445
50,434
18.6%
15.3% 15.2% 14.8%
17.0%
14.1%
15.6%
14.4%
11.2%12.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
50,000
100,000
150,000
200,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 8M18
UMWT 2018
sales target70,000 units
UMW Toyota Motor Market Share Of TIV RHS
UMW HOLDINGS BERHAD
Source: Malaysian Automotive Association
UMW Toyota Motor Unit Sales LHS
11UMW HOLDINGS BERHAD
PERODUA
• In 2017, Perodua maintained its No. 1 position in overall market share since 2006
(12th consecutive year).
• Currently exporting to six countries - Indonesia, Singapore, Mauritius, Fiji, Sri Lanka
and Brunei.
• The all-new Perodua Myvi was launched on 16 November 2017.
• Target for 2018 is 209,000 units (+2% growth).
167,393 166,736
188,641179,989
196,071 195,579213,307 207,110 204,887
158,732
30.5% 31.1% 31.2%30.0% 29.9% 29.3%
32.0%
35.7% 35.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2008 2009 2010 2011 2013 2014 2015 2016 2017 8M18
Perodua 2018
sales target209,000 units
Perodua Market Share Of TIV RHS
UMW HOLDINGS BERHAD
Source: Malaysian Automotive Association
Perodua Motor Unit Sales LHS
12UMW HOLDINGS BERHAD
8M18: UMW GROUP’S MARKET SHARE
Units & Market Share (%)
37.5%11.9%
50.6%
Brand 8M18 2017
Units Market
Share %
Units Market
Share %
Honda
Proton
Nissan
Mazda
Others
74,951
44,709
18,730
9,844
66,330
17.7
10.6
4.4
2.3
15.6
109,511
70,991
27,154
9,730
75,676
19.0
12.3
4.7
1.7
13.1
Total TIV 423,730 576,635
2017
204,887
35.5%
2017
70,445
12.2%
2017
301,303
52.3%
Perodua
158,732UMW Toyota
50,434
Others
214,564
Source: Malaysian Automotive Association
Other Carmakers’ Sales and Market Share
UMW HOLDINGS BERHAD
• UMW Group sold 209,166
units in 8M18 with a market
share of 49% (2017 – 48%)
14UMW HOLDINGS BERHAD
EQUIPMENT SEGMENT
▪ Agriculture
▪ Construction
▪ Forestry
▪ Mining
▪ Industrial and manufacturing
▪ Industrial cleaning – food and beverage, material handling and logistics
▪ Industrial and marine power solutions
UMW represents all of the above principals for some of the world’s most recognised products in:
HEAVY
EQUIPMENT Material handling Marine & Power
INDUSTRIAL EQUIPMENT
15UMW HOLDINGS BERHAD
Heavy Equipment
• We have the largest equipment servicing fleet in Malaysia and can therefore provide
extensive after-sales and maintenance services to our clients wherever they may be.
Myanmar
Papua New Guinea
Malaysia
Singapore
Since 1979 Since 1996
Delivered 38 units
of Rosenbauer
Panther Airport
Fire Fighting
Vehicles to MAHB
from 2010-2015
Since 1965
Brunei
16UMW HOLDINGS BERHAD
Industrial Equipment
Material Handling
Toyota Forklift Franchise
Malaysia
Vietnam
Brunei
Singapore
China :
Shanghai,
Zhejiang
▪ No. 1 position in Malaysia since 1972. Toyota forklift maintained its 50% market share in Malaysia’s material
handling equipment business.
▪ Toyota Forklifts – UMW is one of the Top 10 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.
Strong market leadership position
Since 1967
17UMW HOLDINGS BERHAD
Industrial Equipment
Marine & Power
CompAir
Air Compressor
Mitsubishi
Marine Engines
Honda
Power Products
Ingersoll Rand
Centrifugal
Compressor
GE
Reciprocating
Compressor
Mitsubishi
Gen-sets
18UMW HOLDINGS BERHAD
EQUIPMENT SEGMENT
Financial Highlights
REVENUE CONTRIBUTION
40%
60%
Heavy
Equipment
Industrial
Equipment
1H
2018
PBT CONTRIBUTION
1H
2018
35%
65%
Heavy
Equipment
Industrial
Equipment
Myanmar
39%
Malaysia
45%
PNG
16%
28 September 2018
Signed a Joint Venture with Komatsu
Formed a new company – UMW Komatsu Heavy
Equipment Sdn. Bhd.
• UMW Corporation (74%) and Komatsu (26%)
• Komatsu to pay RM133.9 million for the 26%
stake
• Objective
o To introduce more products/models to
cater to urbanisation sector
o Opportunity to introduce
SMARTCONSTRUCTION: ICT solutions
to construction job sites
o Provision of value-added services
through competitive product pricing,
forex and financing assistance
Singapore
36%
Malaysia
50%
Vietnam
10%
China
3%
20UMW HOLDINGS BERHAD
MANUFACTURING & ENGINEERING SEGMENT
Key Products
Aerospace Component
Lubricants
Auto Components
Aero
Engine
Fan
Cases
Lubricants &
Fluids
Fluids &
Chemicals
Lubricants &
Fluids
(China)
Shock
Absorbers
& Power
Steering
Automotive
Components
• Grantt lubricants, UMW’s in-house brand was
launched in 2015
• Grantt lubricants are distributed in 9 countries, ie:
Malaysia, Singapore, Brunei, the Philippines,
Cambodia, Vietnam, Indonesia, Thailand and China.
UMW is the largest distributor of Repsol
lubricants outside Spain, mainly driven by
strong sales in China
21UMW HOLDINGS BERHAD
MANUFACTURING & ENGINEERING SEGMENT
Manufacture of Aero Engine Fan Cases
• The contract is for the manufacture of fan cases for the
Trent 1000 aero engines for 25+5 years (Trent 7000
engines later) for Rolls-Royce.
• 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.
• The manufacturing plant is located in Serendah, Selangor.
• Successfully delivered the first fan case on 29 November
2017.
• 2018 - Ramp-up production. Target to produce 70 fan
cases.
Component Part Manufacturing for RR’s Most
Advanced Passenger Aircraft Engines
Part of Rolls-Royce’s Asian Supply Chain
Single Source Final Assembly of the Trent 1000
and Trent 7000 engines in Singapore
UMW is the 1st Malaysian Tier 1 Supplier to Rolls-
Royce
UMW Aerospace Sdn Bhd
22UMW HOLDINGS BERHAD
MANUFACTURING & ENGINEERING SEGMENT
Financial Highlights
Malaysia
45%
* excluding aerospace business
• The segmental loss before
taxation of RM3.4 million is
mainly due to start up
losses incurred at the
aerospace business.
• We expect the aerospace
business to be profitable in
2020.
M&E PBT*
1H2018RM25.9m
Auto components
66%
Lubricants
34%
1H
2018
PBT CONTRIBUTION *
24UMW HOLDINGS BERHAD
1H18 CONSOLIDATED FINANCIAL RESULTS
UMW HOLDINGS BERHAD
RM’ mil 1H2018 1H2017 %yoy
Revenue 5,389.2 5,729.2 -5.9%
Associate’s profit 112.0 73.2 53.1%
Profit before tax 303.0 (175.1) >100%
PATAMI 198.5 (189.1) >100%
Automotive80%
Equipment14%
M&E6%
1H18 Revenue
contribution
SEGMENTAL BREAKDOWN OF CORE BUSINESSES
Automotive76%
Equipment24%
1H18 PBT
contribution
*M&E registered a loss of RM3.4m due to start-up losses at the aerospace plant
In 1Q 2018, the Company declared a single-tier dividend of 5 sen per share for the financial year ending
December 2018, paid on 21 June 2018
25UMW HOLDINGS BERHAD
No Company Status
1
2
3
UMW Synergistic Generation Sdn. Bhd. *
Sichuan Haihua Petroleum Steelpipe Co. Ltd. *
PFP Holdings Pty. Ltd. *
✓ COMPLETED rationalisation
✓ COMPLETED
✓ Completed disposal of PFP Taiwan
4
5
UMW Fabritech Sdn. Bhd. *
UMW Coating Technologies (Tianjin) Co. Ltd. *
✓ COMPLETED
✓ Executed SPA, awaiting authorities approval
6 Arabian Drilling Services LLC * ✓ Ceased operations, finalisation of disposal of assets
7 United Seamless Tubulaar Pvt. Ltd. ✓ Ceased operations, under receivership and to proceed
with disposal of assets
8 Oil Country Tubular Limited ✓ Ongoing disposal onto the open market
9
10
11
12
13
14
15
16
Jaybee Drilling Pvt. Ltd. *
UMW Sher (L) Ltd. *
Shanghai BSW Petro-pipe Co. Ltd.
Zhongyou BSS (Qinhuangdoa) Petropipe Co. Ltd.
Tubulars International Pte. Ltd.
UMW Oilfield International (M) Sdn. Bhd. /
UMW Oilfield International (L) Ltd. *
Jiangshu Tube-Cote Shuguang Coating Co. Ltd.
Shanghai Tube-Cote Petroleum Pipe Coating Co. Ltd.
Active negotiations
REMAINDER OF THE UNLISTED OIL & GAS SEGMENTCompanies
* subsidiary
26UMW HOLDINGS BERHAD
REMAINDER OF THE UNLISTED OIL & GAS SEGMENTCarrying value following write-downs
57mRM
▪Remaining carrying value for
investments in associates and
joint ventures
▪We do not expect any further
material impact to the Group
11m RM
▪Remaining carrying value for
subsidiaries
▪We do not expect any further
material impact to the Group
Associates & JVs Subsidiaries
28
SELECTED GROUP FINANCIAL HIGHLIGHTS
▪ Revenue (RM million) ▪ PATAMI (RM million)
▪ Gross Dividend Per Share of RM0.50 each (sen)
1 2
43
12,770
10,721
12,82013,536
15,817
13,95214,933
14,442
10,437*11,067
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
566382
527 486
994
653 652
(1,658)
(641)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
▪ Dividend Payout Ratio (%)
57.7 59.0
75.8 75.2
58.8
78.7 76.1
>100.0
0.0 0.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
37.0
20.030.0 31.0
50.044.0 41.0
20.0
0.0 0.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
March 08
Share Split from
RM1.00 to RM0.50 each
UMW HOLDINGS BERHAD
*Restated
(37)
30UMW HOLDINGS BERHAD
OUR BROAD STRATEGY
Focusing on mid to long term strategic initiatives to enhance
growth
Digitize and digitalize
– the Group’s
business strategy is
aligned with digital
strategy – IoT like
initiatives across our
operations03
01
02
Optimising our
profitability and growth –
Continued focus on our
three core businesses
and monetising long held
assets
Building capability &
capacity – Group Human
Resource transformation
initiatives
31UMW HOLDINGS BERHAD
AUTOMOTIVE STRATEGY
Strengthening our market position
o Second plant – located in Bukit Raja, Klang
o Localisation
o Strategic location
o High automation
o Focus on passenger vehicles and EEV
segmento Plant & land size - 670,000 m²
o Total Investment – RM1.8 billion
o Annual Capacity - 50,000 units (initial)
o Expected to start operations in early 2019
Value Drivers
Increase local content
Competitive pricing
Meeting market
expectations on EEV
More exciting new CKD
models
Boost capacity and
capability
32UMW HOLDINGS BERHAD
EQUIPMENT STRATEGY
To meet new market expectations while leveraging on the
expertise of our partners
Heavy Equipment
o Leveraging on our partnership with Komatsu
o Repositioning our heavy equipment business
to focus on other more urbanised sectors
such as construction
Industrial Equipment
o Bringing other products into the existing
regional network
o Leveraging on Internet of Things (IoT) for
enhancing product offering
o Enhancing fleet management / rental
business
33UMW HOLDINGS BERHAD
M&E STRATEGY
Strategic transformation focusing on HVM with Aerospace as
catalyst
Advance Land
Transportation
Industrial
Automation
Energy
Medical
Devices
High End
Electronics
Aerospace
Entry Point
And
Beyond…Enable
HVM in
Potential opportunities in HVM space
34UMW HOLDINGS BERHAD
MONETISING OUR LAND ASSETS
o Serendah Land – 861 acres.
o Plan to develop this into a High Value Manufacturing Park focusing on industrial.
o Signed an MoU with MIDA to collaborate on the park’s development.
o Working with Invest Selangor and MATRADE.
o Part of the land currently housed the Rolls-Royce fan case project which acts as a
catalyst for further development of Serendah
LOW-DENSITY RESIDENTIAL COMMUNITY
COMMERCIAL CORE WITH INTEGRATED CONNECTION TO LANDSCAPE
MIXED-USE & RESIDENTIAL LOOP ROAD
HIGH-END, LOW-DENSITY RESIDENTIAL COMMUNITY
AEROSPACE INDUSTRY CLUSTER
AUTOMOTIVE INDUSTRY CLUSTER
MEDIUM-DENSITY AFFORDABLE HOUSING COMMUNITY
UMW Aerospace Sdn.
Bhd (24 acres)
T7 Kilgour Sdn Bhd
(2 acres)
Corporate Portal www.umw.com.my
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 UMW Holdings Berhad. 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.
S. Vikneshwaran
Head, Investor, Media Relations & Sustainability
Email: [email protected]
Telephone: +603 20252104
THANK YOU
Roza Shahnaz Omar
Director, Group Strategy
UMW Corporation Sdn. Bhd.