UMW HOLDINGS BERHAD CORPORATE …ir.chartnexus.com/umw/doc/media/UMWH Corporate...UMW HOLDINGS BERHAD OUR STRENGTH LEADER IN OUR CORE BUSINESS SEGMENTS 3 • Leader in the Malaysian

UMW HOLDINGS BERHAD

BEYOND BOUNDARIESUMW HOLDINGS BERHADCORPORATE PRESENTATION

JANUARY 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 with49.1% market share (2018)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

AutomotiveEquipmentManufacturing & Engineering

Vietnam

18,342WORKFORCE

AA2RAM Ratings

* Key markets and Workforce are inclusive of UMW and Perodua

FijiSri Lanka

Mauritius

Seychelles

UMW HOLDINGS BERHAD 6

OUR SHAREHOLDERSAS AT 31 DECEMBER 2019

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

60.55

5.31

6.9115.80

11.43

31/12/2019

Market Capitalisation

RM5.2b

PNB

EPF

Other Local Shareholders KWAP

Foreign Shareholders

Permodalan Nasional Berhad & PNB Managed Unit Trust Funds, 60.55%

Employees Provident Fund Board, 11.43%

Foreign Shareholders, 5.31%

Other Local Shareholders, 15.88% Kumpulan Wang Persaraan(Diperbadankan), 6.91%

UMW HOLDINGS BERHAD

AUTOMOTIVESEGMENT

UMW HOLDINGS BERHAD 8

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 HOLDINGS BERHAD 9

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 ALZAARUZBEZZA

COMPLETELY BUILT-UP (CBU)

COMPLETELY BUILT-UP (CBU)

COMPLETELY KNOCKED-DOWN (CKD)

THAILAND JAPANINDONESIA

UMW HOLDINGS BERHAD

548,115 536,905

605,156 600,123627,753

655,793 666,465 666,674

580,124 576,625 598,714 600,000

12.5%

-2.0%

12.7%

-0.8%

4.6% 4.5%1.6% 0.0%

-13.0%

-0.6%

3.8%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019T

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 Malaysia

MAA forecasted a marginal TIV growth in 2019, with a sales target of 600,000 units. As at November 2019, TIV stood at 549,445 units.

11M19:549,445 units

10

UMW HOLDINGS BERHAD

101,839

82,08991,990 88,662

106,62292,521

103,63695,861

65,110 70,445 66,562 72,000

18.6%15.3% 15.2% 14.8%

17.0%14.1%

15.6% 14.4%11.2% 12.2%

11.1%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019T

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%.

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11M19:61,842 units

UMW HOLDINGS BERHAD

167,393 166,736188,641 179,989 189,137 196,071 195,579

213,307 207,110 204,887227,243 235,000

30.5% 31.1% 31.2% 30.0% 30.1% 29.9% 29.3%32.0%

35.7% 35.5% 38.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019T

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.

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11M19:221,984 units

UMW HOLDINGS BERHAD

AUTOMOTIVE INDUSTRY – MARKET SHAREYEAR-TO-DATE NOVEMBER 2019

UMW HOLDINGS BERHAD

40.4%

11.3%

48.3%Brand 11M19 2018

Units Market Share %

Units Market Share %

HondaProtonNissanMazdaOther brands

78,18389,06619,11510,75068,505

14.216.2

3.52.0

12.4

102,28264,74428,61016,03893,235

17.110.8

4.82.7

15.6

Total TIV 549,445 598,714

2018227,24338.0%

201866,56211.1%

2018304,90950.9%

Perodua221,984

UMW Toyota61,842

Others265,619

Source: Malaysian Automotive Association

Other Carmakers’ Sales and Market Share

• UMW Group sold 283,826units in 11M19 with a market share of 51.7% (2018 – 49.1%)

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UMW HOLDINGS BERHAD

Private consumption have normalized towards its long-term average trend after the exceptional period duringthe GST-free phase of June to August 2018.

Sustained private consumption growth could underpinTIV 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

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UMW HOLDINGS BERHAD 15

Expansion of model line-up1 Higher localisation 1

2 Higher automation

Improve Competitiveness Cost 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

16

UMW HOLDINGS BERHAD 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)

11,498.110,023.0

10,766.0 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

496.9 446.1 550.0

2012 2013 2014 2015 2016 2017 2018

18

UMW HOLDINGS BERHAD

EQUIPMENTSEGMENT

UMW HOLDINGS BERHAD 20

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%

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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

22

UMW HOLDINGS BERHAD

INDUSTRIAL EQUIPMENTMARINE & POWER

Compressors

Generators

Marine Engines

Oil spill equipment

23

UMW HOLDINGS BERHAD

EQUIPMENT INDUSTRY OUTLOOKPOCKETS OF OPPORTUNITIES

HEAVY EQUIPMENT

• The higher allocation in development expenditureduring Budget 2020 could accelerate implementationof projects

• Singapore’s healthy pipeline of public and privatesector projects should drive the construction sectorrecovery and support sales of heavy equipment in thecountry

2.6%0.3% 0.5%

-1.5%4Q18 1Q19 2Q19 3Q19

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

MY

-1.2%2.7% 2.8% 2.9%

4Q18 1Q19 2Q19 3Q19

Construction in Singapore (Real growth)

SG

INDICATORS

INDUSTRIAL EQUIPMENT• The US-China trade conflict could provide opportunities

for ASEAN countries, especially in the manufacturingsector

Approved manufacturing investments in Malaysiasurged to RM33.1 bn in 1H19

• The Singapore’s Ministry of Trade & Industry expects themanufacturing sector to return to positive growth in 2020

1933.1

1H18 1H19

Approved manufacturing investments in Malaysia (RMbn)

MY

4.6%-0.4%

-3.3%-1.7%

4Q18 1Q19 2Q19 3Q19

Manufacturing in Singapore (Real growth)

SG

INDICATORS

Source: MIDA

24

UMW HOLDINGS BERHAD 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 1,767.2 1,882.6

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

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UMW HOLDINGS BERHAD

MANUFACTURING & ENGINEERING

SEGMENT

UMW HOLDINGS BERHAD

MANUFACTURING & ENGINEERING SEGMENTKEY PRODUCTS

Aerospace Component

Auto Components

Lubricants

Aero Engine Fan CasesContract 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

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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

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UMW HOLDINGS BERHAD 30

MANUFACTURING & ENGINEERING SEGMENTINDUSTRY OUTLOOK

AUTO COMPONENTS• Local indicators suggest stable demand for

auto parts in Malaysia, underpinned byhealthy private consumption.

• Growth in the automotive industry willsustain demand for lubricants, autocomponents.

4.4

7.5

4.6 4.3 4.53.5

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

UMW HOLDINGS BERHAD 31

MANUFACTURING & ENGINEERING SEGMENTEXPANDING AND STRENGTHENING OPERATIONS

Commencement of KYB-UMW’s plant expansion and modernisation &improve synergies with UMWT and Perodua

01

02

03

Expansion of dealership network

05

04

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

601.5 645.1

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

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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

34

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 AzizGroup Chief Financial OfficerUMW Corporation Sdn. Bhd.

S. VikneshwaranGeneral Manager Group Investor & Media RelationsEmail: vikneshwaran.s@umw.com.myTelephone: +603 20252104