BEYOND BOUNDARIES Corpo - ChartNexusir.chartnexus.com/umw/doc/media/UMWH Corporate... · 2020-02-18 · BEYOND BOUNDARIES UMW HOLDINGS BERHAD CORPORATE PRESENTATION FEBRUARY 2020.

UMW HOLDINGS BERHAD

BEYOND BOUNDARIESUMW HOLDINGS BERHADCORPORATE PRESENTATION

FEBRUARY 2020

UMW HOLDINGS BERHAD

OUR BUSINESSDIVERSIFIED PORTFOLIO

AUTOMOTIVE EQUIPMENT MANUFACTURING & ENGINEERING

LANDBANK

• Manufacture

• Assembly

• Distribution

• Sales & service

• Distribution

• Trading

• Leasing

• After-sales service

• Manufacture of fan case

• Manufacture of automotive components

• Blending & distribution of lubricants

• Unlocking value of our vast landbank in Serendah

2

UMW HOLDINGS BERHAD

OUR STRENGTHLEADER IN OUR CORE BUSINESS SEGMENTS

3

• Leader in the Malaysianautomotive industry with51.4% market share (2019)through Toyota, Lexus andPerodua marques.

• First Malaysian company tomanufacture and assemblefan cases for Rolls-Royce asa Tier 1 supplier.

• Manufacture and exportKYB shock absorbers to 38countries from Malaysia.

• Distribute Komatsu heavyequipment in 5 countries inthe Asia-Pacific region.

• Hold more than 50% marketshare for Toyota forklift inMalaysia and Singapore; haveoperations in 5 countries inAsia-Pacific.

AUTOMOTIVE EQUIPMENT MANUFACTURING & ENGINEERING

UMW HOLDINGS BERHAD

OUR REVENUE AND PBT CONTRIBUTIONSEGMENTAL BREAKDOWN

* Excluding Aerospace sub-segment (within Manufacturing & Engineering) which was loss-making due to start-up operations

81% 81% 81% 81% 79%

13% 14% 13% 13% 14%

6% 5% 6% 6% 7%

86%78%

72% 71% 72%

13%20%

21% 22% 21%

1% 2%7% 7% 7%

R E V E N U E P B T R E V E N U E P B T R E V E N U E P B T R E V E N U E P B T R E V E N U E P B T

Automotive Equipment Manufacturing & Engineering

*

2014 2015 2016 2017 2018

4

**

UMW HOLDINGS BERHAD 5

OUR INTERNATIONAL PRESENCE12 KEY MARKETS

CREDIT RATING

China

Malaysia

Indonesia

Myanmar

Brunei

Papua

New Guinea

Singapore

Automotive

Equipment

Manufacturing & Engineering

Vietnam

18,342WORKFORCE

AA2

RAM Ratings

* Key markets and Workforce are inclusive of UMW and Perodua

FijiSri Lanka

Mauritius

Seychelles


OUR SHAREHOLDERSAS AT 31 JANUARY 2020

FTSE4Good Bursa Malaysia Index constituent

Bloomberg ticker UMWH:MK

Total number of shares 1,168,293,932

Bursa Malaysia Listing sector Main Market, Consumer Products & Services

60.57

5.33

7.0515.74

11.31

31/1/2020

Market Capitalisation

RM4.6b

PNB

EPF

Other Local Shareholders KWAP

Foreign Shareholders

▪ Permodalan Nasional Berhad & PNB

Managed Unit Trust Funds, 60.57%

▪ Employees Provident Fund Board,

11.31%▪ Foreign Shareholders, 5.33%

▪ Other Local Shareholders, 15.74% ▪ Kumpulan Wang Persaraan

(Diperbadankan), 7.05%


GROUP FINANCIAL HIGHLIGHTSHISTORICAL PERFORMANCE

▪ Revenue (RM million) ▪ PATAMI (RM million)

▪ Gross Dividend Per Share of RM0.50 each (sen)

1 2

43

10,721

12,82013,536

15,817

13,95213,951

14,932

10,43710,437 11,306

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

382527 486

994

653 652

-37

-1,658

-641

345

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

▪ Dividend Payout Ratio (%)

59.0

75.8 75.2

58.8

78.7 76.1

100.0

>100.0 0.0

25.6

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

20.030.0 31.0

50.044.0 41.0

20.0

0.0 0.07.5

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

UMW HOLDINGS BERHAD

AUTOMOTIVESEGMENT


AUTOMOTIVE SEGMENTSTRUCTURE

UMW Toyota Motor Sdn. Bhd.*

Manufacturer and dealer in component parts including engines, couplings and transmission components

Perodua Engine Manufacturing Sdn. Bhd.

Perodua ManufacturingSdn. Bhd.

Perodua Sales Sdn. Bhd.

30%

Toyota BoshokuUMW Sdn. Bhd.

Automotive Industries Sdn. Bhd.

Assembly Services Sdn. Bhd.

Perusahaan Otomobil KeduaSdn. 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, door trims, headlining, etc.

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 MalaysiaSdn. 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

Perodua Global ManufacturingSdn. 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.***


UMW GROUPMARQUES AND MODELS

COMPLETELY KNOCKED-DOWN (CKD)

YARISVIOS INNOVA RUSHFORTUNER HIACEHILUX

CAMRY COROLLA C-HR AVANZA ALPHARD VELLFIRE HARRIER

ESLS NX RX LX LC

AXIAMYVI ALZAARUZ

COMPLETELY BUILT-UP (CBU)

COMPLETELY KNOCKED-DOWN (CKD)

THAILAND JAPANINDONESIA

BEZZA

UMW HOLDINGS BERHAD

536,905

605,156 600,123627,733

655,744 666,487 666,677

580,085 576,625598,598 604,287 607,000

-2.0%

12.7%

-0.8%

4.6% 4.5%1.6% 0.0%

-13.0%

-0.6%

3.8%1.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020T

Unit sales % Growth Year-on-Year

TOTAL INDUSTRY VOLUME (TIV)MALAYSIA AUTOMOTIVE ASSOCIATION (MAA)

▪ Low industry growth due to no end-of-life policy, no scrap policy, high car ownership.

▪ In 2019,TIV grew 1.0% to register sales of 604,287 units, fueled by the passenger vehicles (PV) segment which saw sales of 550,179 units. Within the PV segment, passenger cars continued to form the biggest segment with 69.4%.

▪ MAA is forecasting a marginal TIV growth in 2020, with a sales target of 607,000 units.

11

UMW HOLDINGS BERHAD

82,08991,990 88,662

106,622

92,521103,636

95,861

65,11070,445 66,562 70,009

15.3% 15.2% 14.8%17.0%

14.1%15.6%

14.4%

11.2% 12.2%11.1% 11.6%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Unit sales Market Share

UNIT SALESUMW TOYOTA MOTOR - TOYOTA AND LEXUS MODELS

▪ Importation of CBU vehicles and CKD components are transacted in US Dollar.

▪ UMWT launched the all-new Vios, Yaris and Corolla in 2019.

▪ Vios and Yaris are produced at UMWT’s new Bukit Raja plant whilst the Corolla is a CBU model from Thailand. Vios and Yaris share the same platform, with local content above 80%.

12

UMW HOLDINGS BERHAD

166,736188,641 179,989 189,137 196,071 195,579

213,307 207,110 204,887227,243

240,341 240,000

31.1% 31.2%30.0% 30.1% 29.9% 29.3%

32.0%

35.7% 35.5%38.0%

39.8%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020T

Unit sales Market Share

UNIT SALESPERODUA – 38%-OWNED ASSOCIATE

▪ Perodua maintained its No.1 position in overall market share for the 14th consecutive year in 2019.

▪ The all-new 7-seater SUV, Perodua Aruz was launched in January 2019. Enhanced Perodua Axiawas introduced in September 2019.

▪ Exports to 7 countries - Indonesia, Singapore, Mauritius, Fiji, Sri Lanka, Brunei and Seychelles.

13

UMW HOLDINGS BERHAD

AUTOMOTIVE INDUSTRY – MARKET SHAREUMW GROUP MARKET SHARE GREW TO 51.4% IN 2019

UMW HOLDINGS BERHAD

39.8%

11.6%

48.6%

Brand 2019 2018

Units Market Share %

Units Market Share %

ProtonHondaNissanMazdaOther brands

100,18385,41821,23911,65175,446

16.614.1

3.51.9

12.5

64,744102,282

28,61016,03893,119

10.817.1

4.82.7

15.6

Total TIV 604,287 598,598

2018

227,243

38.0%

2018

66,562

11.1%

2018

304,909

50.9%

Perodua240,341 UMW Toyota

70,009

Others293,937

Source: Malaysian Automotive Association

Other Carmakers’ Sales and Market Share

• UMW Group sold 310,350units in 2019 with a market

share of 51.4% (2018 – 49.1%)

14

UMW HOLDINGS BERHAD

Private consumption have normalized towards its long-

term average trend after the exceptional period during

the GST-free phase of June to August 2018.

Sustained private consumption growth could underpin

TIV growth in 2020598,714 600,000

612,000

2018 2019F 2020F

Malaysia TIV 2018-2020F (units)

Source: MAA

INDICATORS

7.1 6.9 6.6 7.9

8.9 8.4 7.6 7.8

7.0

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Real private consumption growth(% y-o-y)

AUTOMOTIVE INDUSTRY OUTLOOKAUTO SALES GROWTH LARGELY DEPENDS ON THE STATE OF THE ECONOMY

15


Expansion of model line-up1 Higher localisation 1

2 Higher automation

Improve

CompetitivenessCost optimisation

3 Highly-efficient Bukit Raja plant3 Collaboration with dealers to

boost after-sales4 Network rationalisation

UMW TOYOTA MOTOROPTIMISE COSTS WHILE ELEVATING REVENUE

2 Attractive financing packages –in partnership with Toyota Capital

• 4 new SUV models• Market share of 12%

2020

UMW HOLDINGS BERHAD

• 9-year financing plan – 3-tier step-up • Currently for Yaris, Vios, Avanza and Hilux – with plans for other models• Mainly to target first time buyers

TOYOTA EZ BELI CAMPAIGN

UMW TOYOTA MOTORATTRACTIVE STEP-UP FINANCING PACKAGES

17


Ride on Perodua’s success in the entry-level segment

• Perodua introduced an all-new SUV model, Aruz in January 2019

2Strategic planning of future car models

• To ensure it can compete effectively against its direct competitors

1

PERODUALEVERAGE ON EXCELLENT BRAND PERCEPTION FOR ENTRY-LEVEL SEGMENT

• Enhanced Perodua Axia was introduced in September 2019

• Facelift Perodua Bezza to be launched in early 2020

UMW HOLDINGS BERHAD

FINANCIAL HIGHLIGHTSAUTOMOTIVE

* PBT includes contribution from Perodua

Revenue

(RM million)

PBT *

(RM million)

11,498.1

10,023.010,766.0 10,722.0

8,451.0 8,972.2 8,946.7

2012 2013 2014 2015 2016 2017 2018

1,796.8

1,413.5 1,475.3

860.9

496.9 446.1550.0

2012 2013 2014 2015 2016 2017 2018

19

UMW HOLDINGS BERHAD

EQUIPMENTSEGMENT


EQUIPMENT SEGMENTDISTRIBUTOR OF GLOBALLY-KNOWN BRANDS IN SOME PARTS OF THE REGION

HEAVY EQUIPMENT

INDUSTRIAL EQUIPMENT

Material handling

Marine & Power

• Agriculture• Construction• Forestry• Mining

• Industrial and manufacturing

• Industrial cleaning-▪ food and

beverage▪ material

handling▪ logistics

• Industrial and marine power solutions

UMW HOLDINGS BERHAD

HEAVY EQUIPMENTSTRUCTURE

UMW Komatsu Heavy Equipment Sdn Bhd

UMW Corporation(74%)

Komatsu Ltd(26%)

Myanmar

Papua New Guinea

Malaysia

Singapore

Since 1965

Brunei

Since 1979

Since 1996

Principal-distributorship relationship between UMW and

Komatsu began

1965

Oct 2018

Joint-venture agreement between UMW and Komatsu

begins

Also distributes:

2018 Revenue contribution

Malaysia, 42%

Myanmar, 38%

PNG, 17%

Singapore, 3%

22

UMW HOLDINGS BERHAD

Toyota Forklift Franchise – UMW is one of the Top 10 distributors globally

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.

▪ Under the 2018 Toyota Material Handling International (TMHI) Award

Programme, UMW Industries was awarded the Diamond Club

Recognition, President’s Award (Gold) and Vision 2020 Award.

▪ Have ventured into leasing of Toyota forklifts – about 9,000 units in the

region.

Strong market leadership position

Since 1965

INDUSTRIAL EQUIPMENTMATERIAL HANDLING

Malaysia, 46%

Singapore, 39%

Vietnam, 12%

China, 3%

2018 Revenue contribution

23

UMW HOLDINGS BERHAD

INDUSTRIAL EQUIPMENTMARINE & POWER

Compressors

Generators

Marine Engines

Oil spill equipment

24

UMW HOLDINGS BERHAD

EQUIPMENT INDUSTRY OUTLOOKPOCKETS OF OPPORTUNITIES

HEAVY EQUIPMENT

• The higher allocation in development expenditure

during Budget 2020 could accelerate implementation

of projects

• Singapore’s healthy pipeline of public and private

sector projects should drive the construction sector

recovery and support sales of heavy equipment in the

country

2.6%0.3% 0.5%

-1.5%

4Q18 1Q19 2Q19 3Q19

Construction sector growth in Malaysia (% y-o-y)

M

Y

-1.2%

2.7% 2.8% 2.9%

4Q18 1Q19 2Q19 3Q19

Construction in Singapore (Real growth)

S

G

I

N

D

I

C

A

T

O

R

S

INDUSTRIAL EQUIPMENT

• The US-China trade conflict could provide opportunities

for ASEAN countries, especially in the manufacturing

sector

❑ Approved manufacturing investments in Malaysia

surged to RM33.1 bn in 1H19

• The Singapore’s Ministry of Trade & Industry expects the

manufacturing sector to return to positive growth in 2020

19

33.1

1H18 1H19

Approved manufacturing investments in Malaysia (RMbn)

M

Y

4.6%

-0.4%-3.3%

-1.7%

4Q18 1Q19 2Q19 3Q19

Manufacturing in Singapore (Real growth)

S

G

I

N

D

I

C

A

T

O

R

S

Source: MIDA

25


EQUIPMENT SEGMENTSECTORAL SHIFT; EXPANSION OF PRODUCTS AND SERVICES

HEAVY EQUIPMENT INDUSTRIAL EQUIPMENT

1 Focus on more urbanised sectors –construction & mega infrastructure projects

Venture into leasing business model and equipment-as-a-service

6

Further expansion into the leasing business model

1

Ride on the urbanisation of Vietnam

2

Expand product line-up3

Leverage on Papua New Guinea’s gold mining and construction sectors

2

Implement extended warranty programme and maintenance service contract

Projects Est. cost

Penang Transport Master Plan RM32bn

Klang Valley MRT Line 3 (MRT3) RM20bn

KL-Singapore High Speed Rail RM20bn

East Coast Rail Link sub-contracts RM18bn

Pan Borneo Highway Sabah RM13bn

Bandar Malaysia infrastructure RM21bn

Projects Est. cost

Sarawak Coastal Highway RM5bn

Sarawak Second Trunk Road RM6bn

Sarawak Water Grid Phase 1 RM8bn

Labuan Bridge RM4bn

Johor BRT RM3bn

Kota Kinabalu Water Supply Scheme RM3bn

Source: Affin-Hwang Research

Provision of value-added services4 Diversify product base3

5

UMW HOLDINGS BERHAD

FINANCIAL HIGHLIGHTSEQUIPMENT

Revenue

(RM million)

PBT

(RM million)

2,138.5

1,705.5 1,767.21,882.6

1,382.8 1,458.9 1,539.6

2012 2013 2014 2015 2016 2017 2018

183.5195.8

218.2 226.5

145.6 141.8160.1

2012 2013 2014 2015 2016 2017 2018

27

35.0%

65.0%

42.0%

58.0%

39.0%

61.0%

25.0%

75.0%

32.0%

68.0%

32.0%

68.0%

Heavy Equipment Industrial Equipment

UMW HOLDINGS BERHAD

MANUFACTURING & ENGINEERING

SEGMENT

UMW HOLDINGS BERHAD

MANUFACTURING & ENGINEERING SEGMENTKEY PRODUCTS

Aerospace Component

Auto Components

Lubricants

Aero Engine Fan Cases

Contract Manufacturer for

Shock Absorbers Auto parts

Motorcycle suspension units

Shock Absorbers

• For both OEM and REM markets.• Export to more than 38 countries

from Malaysia.

Engineering plastic

• Oil Filters, Eco Filters & Fuel Filters

• Air Filters & Cabin Filters• Hydarulic & ATF Filters• Brake pads• Brake Fluid & Long-life

Radiator Coolant• Auto Transmission Fluid

• Cam Cover or Cylinder Head Cover• Air Intake Manifold• Charcoal Canister• Integrated Air Cleaner Assembly

UMW’s proprietary lubricant brand.

Premium range of Repsol lubricants for the automotive industryacross Asia and Southeast Asia Region

Cylinder Head Cover

29

UMW HOLDINGS BERHAD

MANUFACTURING & ENGINEERING SEGMENTMANUFACTURE OF AERO ENGINE 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 -single-source supplier of fan cases for Trent 1000, with production for Trent 7000 engines expected in 4Q20

• Long-term contract of 25+5 years; signed in 2015

• The manufacturing plant is located in Serendah, Selangor

UMW Aerospace Sdn Bhd

29 Nov 2017 Delivery of the first fan case

2020 – Production ramp-up to continue

2019Ramp-up production

Milestones

Delivered more than 150 units

30


MANUFACTURING & ENGINEERING SEGMENTINDUSTRY OUTLOOK

AUTO COMPONENTS• Local indicators suggest stable demand for

auto parts in Malaysia, underpinned by

healthy private consumption.

• Growth in the automotive industry will

sustain demand for lubricants, auto

components.

4.4

7.5

4.6 4.3 4.5

3.5

2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Sale of Motor Vehicle Parts & Accessories inMalaysia (%, y-o-y)

Source: DoSM

• Production ramp-up is progressing well as per

scheduled orders from Rolls-Royce.

• Production of Trent 7000 fan case scheduled to

commence in 4Q20.

• Combine production of Trent 1000 and Trent

7000 fan cases are expected to drive the

volume beyond break-even in 2020.

AEROSPACE


MANUFACTURING & ENGINEERING SEGMENTEXPANDING AND STRENGTHENING OPERATIONS

Commencement of KYB-UMW’s plant expansion and modernisation &

improve synergies with UMWT and Perodua01

02

03

Expansion of dealership network

05

04

Enhance position in aerospace business & entry into other High-Value

Manufacturing sectors

Continuous margin improvement efforts

Development of our own products

UMW HOLDINGS BERHAD

FINANCIAL HIGHLIGHTSMANUFACTURING & ENGINEERING

Revenue – exited automotive components manufacturing business in India in late 2015.PBT – Losses in automotive components manufacturing business in India (2013); Start-up losses at Aerospace sub-segment (2017)

Revenue

(RM million)

PBT

(RM million)

680.7735.5 725.1 707.5

601.5645.1

843.2

2012 2013 2014 2015 2016 2017 2018

9.9

-39.2

14.8 16.824.6

-17.7

21.5

2012 2013 2014 2015 2016 2017 2018

33

UMW HOLDINGS BERHAD

LANDBANK IN SERENDAH

UMW HOLDINGS BERHAD

UNLOCKING VALUE OF OUR ASSETSMONETISING LONG-HELD ASSETS

Close to 40 acres of UMW’s land in Serendah have been taken up so far

We are actively negotiating with interested parties and hope to close some deals soon.

UMW’s operations in Shah Alam to move to Serendah within the next few years.

861 acres of land in Serendah

Company Acreage

UMW Aerospace 24.0 acres

Multi-Code Electronics Industries (M) Bhd

8.25 acres

Private local company 5.3 acres

T7 Kilgour Sdn Bhd 2.0 acres

35

UMW HOLDINGS BERHAD

30th May 2019

THANK YOU

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.

Nik Azlan Bin Nik Abdul Aziz

Group Chief Financial Officer

UMW Corporation Sdn. Bhd.

S. Vikneshwaran

General Manager

Group Investor & Media Relations

Email: [email protected]

Telephone: +603 20252104

http://www.umw.com.my/

BEYOND BOUNDARIES Corpo - ChartNexusir.chartnexus.com/umw/doc/media/UMWH Corporate... · 2020-02-18 · BEYOND BOUNDARIES UMW HOLDINGS BERHAD CORPORATE PRESENTATION FEBRUARY 2020.

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