UMW Holdings Bhd - ChartNexusir.chartnexus.com/umw/doc/media/UMW Corporate Presentation September.pdfUMW HOLDINGS BERHAD 11 PERODUA • In 2017, Perodua maintained its No. 1 position

1UMW HOLDINGS BERHAD

Beyond BoundariesUMW Holdings BerhadCorporate Presentation

September 2018


Introduction


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


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


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


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


Our Automotive

business


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.***


• 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


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


UMW Toyota Motor Unit Sales LHS


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


Perodua Motor Unit Sales LHS


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


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%)


Our Equipment

business


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


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


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



Marine & Power

CompAir

Air Compressor

Mitsubishi

Marine Engines

Honda

Power Products

Ingersoll Rand

Centrifugal

Compressor

GE

Reciprocating

Compressor

Mitsubishi

Gen-sets


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%


Our Manufacturing &

Engineering

business


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



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



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 *


1H18

Financial Results


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


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


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

27

Historical

performance

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)


Looking Ahead


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


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


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


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


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


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.

UMW Holdings Bhd - ChartNexusir.chartnexus.com/umw/doc/media/UMW Corporate Presentation September.pdfUMW HOLDINGS BERHAD 11 PERODUA • In 2017, Perodua maintained its No. 1 position

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