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TRANSCRIPT
Lux Executive Summit
Driving & Sustaining Innovation
The Sime Darby Renewables Story19th March 2015
Contents
Innovation in Sime Darby
The Barriers
Overcoming the Challenges
Building a Legacy
11
22
33
44
Delivering & Sustaining Innovation: The Sime Darby Renewables Story
External
Economic
Pressure
Stiff competition &
subdued consumer
sentiment
Weak CPO market
Weak mining sector
#1 Listed Oil Palm
Plantation Companyin terms of planted areas
One of the Largest
Caterpillar dealers in the world
One of the Top
BMW Dealersin the world
Top 3 Property
Developer in Malaysia in terms of revenue
First Container
Port Operator within Shandong’s
Yellow River Delta
Land bank scarcity
Sime Darby Today
3
Delivering & Sustaining Innovation: The Sime Darby Renewables Story
Cleaner tech in the
automotive & heavy
equipment businesses
Green buildings
Division focused,
Sustainability-led Innovation
Fully segregated, certified
sustainable palm oil
Are these sufficient?
Sprinkling Innovation/
4
Delivering & Sustaining Innovation: The Sime Darby Renewables Story
Small is the New
BIG
By-Products /
Co-Products
Land Bank
Scarcity
Renewables
End-User
High Value
Specialty
Segment
Our Biggest
Nightmare
Bio-Chemical Nutraceutical Bio-Energy
SD Renewables: The Origins
5
Delivering & Sustaining Innovation: The Sime Darby Renewables Story
Delivering the
Vision
The
Barriers
Overcoming the Challenges
Building a
Legacy
To be a champion of renewables-
based businesses within a leading
integrated global plantation company
Our Vision
6
Delivering & Sustaining Innovation: The Sime Darby Renewables Story
Requires
patience &
persistence
Results are not
immediate
Weak demand
Threat from
competitors &
substitutes
Limited
resources
during
downturn
Products not
up to consumer
requirements
Delays in
commercialization
Financial Operational MarketPsychological
FIN
ISH
STA
RT
The Barriers
7
Q-to-Q
pressure
Delivering & Sustaining Innovation: The Sime Darby Renewables Story
Effective &
continuous
stakeholders’
communication
Continuous
innovation in
technology
pipeline
Leverage
multiple
resources
• Co-invest
with VC /
PE &
government
agencies
Invest in talent
Set clear
investment
philosophy &
milestones
Financial Operational MarketPsychological
FIN
ISH
STA
RT
PERSISTENCE & PERSEVERANCE
No Pain, No Gain
8
Delivering & Sustaining Innovation: The Sime Darby Renewables Story
Intra
DivisionIntegration
Inter
DivisionIntegration
Downstream
Upstream
R&DEngineering
Sustaining Integrated Innovation
9
FIN
ISH
STA
RT
Delivering & Sustaining Innovation: The Sime Darby Renewables Story
Doing the Right Thing + Success = Legacy
10
Plantation Co.
Diversify into higher
value-added productsMitigate impact of volatile
commodities market
Sustainable
raw materials
End-markets &
distributions
channels
Catch the next industry
game changers
Petro Co.
New
Generation
of Inter
Industry Co-
Opetition
THANK YOU
Contact us:
1. Azli Razali – [email protected]
2. David Ng – [email protected]
3. Sarah Chen – [email protected]