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TRANSCRIPT
3
OUR JOURNEY
Enhancing our capabilities
Founded in 1917 Automotive Assembly Tier 1 Supplier
Bicycle repair shop 36 years with Toyota
25 years with Daihatsu
Fan Case Manufacturer for
Rolls-Royce
Laying the building blocks for excellence
UMW Holdings Berhad
4
58.32%
12.07%
7.99%12.66%
8.96%
OUR SHAREHOLDERS
As at 31/01/2018
31/01/2018
Market Capitalisation
RM 8.0b
PNB
EPF
Other Local Shareholders KWAP
Foreign Shareholders
Permodalan Nasional Berhad/ PNB
Managed Unit Trust Funds, 58.32%
Employee Provident Fund Board,
8.96%
Foreign Shareholders, 12.07%
Other Local Shareholders, 12.66% Kumpulan Wang Persaraan
(Diperbadankan), 7.99%
UMW Holdings Berhad
5
OVERVIEW OF OUR BUSINESSES
01 02 03
04
• Manufacture
• Assembly
• Distribution
• Sales &
service
Automotive Equipment M&E
Others
• Distribution
• Trading
• After-sales
service
• Blending &
distribution
of lubricants
• Manufacture
of
automotive
components
• Manufacture
of fan case
• Manufacture
• Land rigs
• Trading
Oil & Gas - Unlisted
UMW Holdings Berhad
6
INTERNATIONAL PRESENCE
10 countries
China
Malaysia
Indonesia
Myanmar
India
Papua
New Guinea
Singapore
Australia
Oman
Automotive
Equipment
Manufacturing & Engineering
Oil & Gas
Vietnam
10,374 Employees
AA2 RAM
Credit Rating
UMW Holdings Berhad
8
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.***
9
• Lower sales in 2017 were mainly due to weak consumer sentiment and stringent
lending guidelines imposed by the financial institutions.
• Target for 2018 is 590,000 units (+2.3% growth)
548,115 536,905605,156 600,123 627,753 655,793 666,465 666,674
580,124 576,635
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%
25.0%
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
Unit sales
Growth
TOTAL INDUSTRY VOLUME (TIV)
TIV % Change Over Previous Year RHS
Total Industry Volume – Unit Sales LHS
UMW Holdings Berhad
10
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.
• 2018 – more new models from Toyota and Lexus
• Target for 2018 is more than 70,000 units.
101,839
82,08991,990 88,662
106,622
92,521103,636
95,861
65,11070,445
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
Unit sales
Market Share
UMW Toyota Motor Market Share Of TIV RHS
UMW Toyota Motor Unit Sales LHS
UMW Holdings Berhad
11
PERODUA
• Perodua maintained the No. 1 position in overall market share since 2006
• Currently exporting to six countries, namely, 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
189,137 196,071 195,579213,307 207,110 204,887
30.5% 31.1% 31.2%30.0% 30.1% 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 2012 2013 2014 2015 2016 2017
Unit sales
Market Share
Perodua Market Share Of TIV RHS
Perodua Unit Sales LHS
UMW Holdings Berhad
12
UMW GROUP’S MARKET SHARE
Units & Market Share (%)
35.5%
12.2%
52.3%
Brand 2017 2016
Units Market
Share %
Units Market
Share %
Honda
Proton
Nissan
Mazda
Hyundai, Kia
Others
109,511
70,991
27,154
9,730
8,241
75,676
19.0
12.3
4.7
1.7
1.4
13.1
91,830
72,290
40,706
12,493
9,470
81,115
15.8
12.5
7.0
2.2
1.6
14.0
Total 576,635 580,124
2016
207,110
35.7%
2016
65,110
11.2%
2016
307,904
53.1%
Perodua
204,887 UMW Toyota
70,445
Others
301,303
• UMW companies sold 275,332
units in 2017 with a market
share of 48% (2016 – 47%)
UMW Holdings Berhad
14
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 Industrial Equipment Marine & Power Equip
UMW Holdings Berhad
15
HEAVY EQUIPMENT
• Komatsu franchise in Malaysia, Singapore, Myanmar and Papua New Guinea
• Has strong presence in Myanmar, supplying equipment to the jade mining and resource mining
sectors.
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
UMW Holdings Berhad
16
INDUSTRIAL EQUIPMENT
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 5 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
UMW Holdings Berhad
17
MARINE AND POWER EQUIPMENT
CompAir
Air Compressor
Mitsubishi
Marine Engines
Honda
Power Products
Ingersoll Rand
Centrifugal
Compressor
GE
Reciprocating
Compressor
Mitsubishi
Gen-sets
UMW Holdings Berhad
19
KEY PRODUCTS
Aerospace Component Lubricants
Auto Components
Fan
Case
Lubricants &
Fluids
Fluids &
Chemicals
Lubricants &
Fluids
(China)
Shock
Absorbers
& Power
Steering
Automotive
Components
UMW Holdings Berhad
20
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.
Component Part Manufacturing for RR’s Most
Advanced Passenger Aircraft Engines
Be Part of Asian Supply Chain Development
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
UMW Holdings Berhad
22
UMW Synergistic Generation Sdn. Bhd. - RATIONALISED
UMW Oilfield International (M) Sdn. Bhd. & UMW Oilfield International (L) Ltd.
Sichuan Haihua Petroleum Steelpipe Co. Ltd. - DIVESTED
PFP Holdings Pty. Ltd. (a subsidiary in Taiwan was divested)
Jiangshu Tube-Cote Shuguang Coating Co. Ltd.
Shanghai Tube-Cote Petroleum Pipe Coating Co. Ltd.
OIL & GAS (UNLISTED)
Companies that are not part of the listed segment
Drilling &
Exploration
OCTG & Line
Pipe
Fabrication
Trading and
Oilfield services
No of remaining
assets
JayBee Drilling Pvt. Ltd.
UMW Sher (L) Ltd.
Arabian Drilling Services L.L.C – CEASED OPERATIONS
Shanghai BSW Petro-Pipe Co. Ltd.
Zhongyou BSS (Qinhuangdao) Petropipe Co. Ltd.
Oil Country Tubular Limited
United Seamless Tubulaar Pvt. Ltd.
Tubulars International Pte. Ltd.
3
UMW Fabritech Sdn. Bhd. -DIVESTED
UMW Coating Technologies (Tianjin) Co. Ltd.
5
1
4
13Total
UMW Holdings Berhad
24
TOWARDS A RESILIENT ORGANIZATION
01
0302
CONTINUED
EXPANSION OF
OUR CORE
BUSINESS
ADDRESSING
EXIT OF
UNLISTED OIL
& GAS
SEGMENT
MONETIZING
LONG HELD,
LAND ASSETS
The broad strategic framework towards managing
Group’s challenges and future needs
UMW Holdings Berhad
25
CONTINUED EXPANSION OF OUR BUSINESS
AUTOMOTIVE
Enhancing and
optimizing profitability
M&E
Continued expansion
of core business and
HVM
EQUIPMENT
Strengthening of
heavy equipment
segment with Komatsu
UMW Holdings Berhad
26
MONETISING LONG HELD, LAND ASSETS
o Serendah Land – 861 acres
o Opportunity exist for unlocking of value.
o Part of the land currently housed the Rolls-Royce fan casing 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’s site
UMW Holdings Berhad
28
SELECTED GROUP FINANCIAL HIGHLIGHTS
Revenue (RM million) PBT (RM million)
KPI – Gross Dividend Per Share of RM 0.50 each (sen) KPI – Annual Dividend Payout Ratio (%)
1 2
43
9,976
12,770
10,721
12,82013,536
15,817
13,952
14,93314,442
10,959
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
856
1,277
847
1,313 1,365
2,020
1,4361,622
270
(2,130)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
50.857.7 59.0
75.8 75.2
58.8
78.7 76.1
100.0
0.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
30.037.0
20.030.0 31.0
50.044.0 41.0
20.0
0.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
March 08
Share Split from
RM1.00 to RM0.50 each
UMW Holdings Berhad
29
Key Performance Indicators
RETURN ON SHAREHOLDERS FUNDS
16.5% 17.0%
10.5%13.5%
11.7%
21.9%
11.7% 10.1%
-0.6% -29.3%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
UMW Holdings Berhad
31
CURRENT PROSPECTS - 2018
Automotive Equipment
Leveraging on Partner’s (KOMATSU & TICO) strength to boost product range and market penetration
Expanding value added services – total solutions provider
Product and market
expansion
M&E
Increasing market share for lubricants business in existing markets (Malaysia, China Indonesia)
Aerospace plant commence full operations and ramping up production
Growth area
Others
UMW is actively implementing action plans towards exit from this segment
Target complete disposal by 2018
Focus on divestment
of unlisted Oil & Gas
assets
New models for 2018
UMW Toyota Motor to launch new car models to boost market share
Perodua contribution sustainable with continued strong demand in entry level segment
UMW Holdings Berhad
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 5163 5000
THANK YOU
Roza Shahnaz Omar
Director, Group Strategy
UMW Corporation Sdn. Bhd.