Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
1UMW HOLDINGS BERHAD
Beyond Boundaries
UMW Holdings Berhad
Corporate Presentation
July 2019
2UMW HOLDINGS BERHAD
OUR JOURNEY
Enhancing our capabilities
Founded in 1917 Automotive Assembly Aerospace
Automotive repair shop
>37 years with Toyota
>26 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
3UMW HOLDINGS BERHAD
59.79%
5.61%
6.42%16.95%
11.23%
OUR SHAREHOLDERS
As at 28 June 2019
28/06/2019
Market Capitalisation
RM6.3b
PNB
EPF
Other Local Shareholders KWAP
Foreign Shareholders
▪ Permodalan Nasional Berhad & PNB
Managed Unit Trust Funds, 59.79%
▪ Employees Provident Fund Board,
11.23%
▪ Foreign Shareholders, 5.61%
▪ Other Local Shareholders, 16.95% ▪ Kumpulan Wang Persaraan
(Diperbadankan), 6.42%
UMW HOLDINGS BERHAD
Bloomberg ticker: UMWH:MK
Total number of shares: 1,168,293,932
Bursa Malaysia Listing sector: Main Market, Consumer Products & ServicesFTSE4Good Bursa Malaysia Index constituent
4UMW HOLDINGS BERHAD
OVERVIEW OF OUR BUSINESSES
• Manufacture
• Assembly
• Distribution
• Sales & service
Automotive Equipment M&E Others
• Distribution
• Trading
• Leasing
• After-sales
service
• Manufacture of
fan case
• Manufacture of
automotive
components
• Blending &
distribution of
lubricants
• Unlocking value
of the land in
Serendah
5UMW HOLDINGS BERHAD
INTERNATIONAL PRESENCE
8 countries
China
Malaysia
Indonesia
Myanmar
Brunei
Papua
New Guinea
Singapore
Automotive
Equipment
Manufacturing & Engineering
Vietnam
8,000▪ Employees
AA2▪ RAM
▪ Credit Rating
UMW HOLDINGS BERHAD
6UMW HOLDINGS BERHAD
AUTOMOTIVE
7UMW HOLDINGS BERHAD
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, 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 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.***
8UMW HOLDINGS BERHAD
548,115 536,905
605,156 600,123627,753
655,793 666,465 666,674
580,124 576,625598,714
12.5%
-2.0%
12.7%
-0.8%
4.6% 4.5%1.6% 0.0%
-13.0%
-0.6%
3.8%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
-100,000
100,000
300,000
500,000
700,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Unit sales % Growth Year-on-Year
TOTAL INDUSTRY VOLUME (TIV)
2019 target - 600,000 units (0.2% YoY)
▪ 2018 vehicle sales saw a growth of 3.8% year-on-year with 598,714 units sold,
exceeding MAA’s revised target of 585,000 units. The 2018 TIV growth marks the end
of two consecutive years of sales decline.
▪ Sales improved substantially during the three-month GST-free period.
▪ MAA is forecasting a marginal TIV growth in 2019, with a sales target of 600,000 units.
Source: Malaysian Automotive Association
9UMW HOLDINGS BERHAD
101,839
82,08991,990 88,662
106,622
92,521
103,63695,861
65,11070,445 66,562
18.6%
15.3% 15.2% 14.8%17.0%
14.1%15.6%
14.4%
11.2% 12.2%11.1%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
-10,000
30,000
70,000
110,000
150,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Unit sales Market Share
UMW TOYOTA MOTOR (UMWT) UNIT SALES
2019 sales target - 75,000 Units (13% YoY)
▪ Distributes 7 CKD and 8 CBU Toyota models. Lexus models are all CBU.
▪ Importation of CBU vehicles and CKD components are transacted in US Dollar.
▪ All-new models launched in late 2018 – Toyota Rush (October) and Toyota Camry
(November).
▪ As a result of the run-out of Vios towards the end of 2018, UMWT sold 66,562 units
during the year. Delivery of Rush started in Feb 2019 despite the launch in Oct 2018.
Source: Malaysian Automotive Association
10UMW HOLDINGS BERHAD
167,393 166,736188,641 179,989 189,137 196,071 195,579
213,307 207,110 204,887227,243
30.5% 31.1% 31.2%30.0% 30.1% 29.9% 29.3%
32.0%
35.7% 35.5%38.0%
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 2018
Unit sales Market Share
PERODUA UNIT SALES IN 2018
2019 sales target - 235,000 Units (3% YoY)
*
Source: Malaysian Automotive Association
▪ Perodua exceeded its 2018 target with a record breaking sales of 227,243 units and
maintained its No.1 position in overall market share for the 13th consecutive year. The
all-new Myvi (launched in Nov 2017) was the best-selling model.
▪ Exporting to 7 countries - Indonesia, Singapore, Mauritius, Fiji, Sri Lanka, Brunei and
Seychelles.
▪ Order taking for the new 7-seater SUV, Perodua Aruz started on 2 Jan 2019, with
monthly sales target of 2,500 units.
11UMW HOLDINGS BERHAD
2018: UMW GROUP’S MARKET SHARE
Units & Market Share (%)
38.0%11.1%
50.9%
Brand 2018 2017
Units Market
Share %
Units Market
Share %
Honda
Proton
Nissan
Mazda
Others
102,282
64,744
28,610
16,038
93,235
17.1
10.8
4.8
2.7
15.6
109,511
70,991
27,154
9,730
75,676
19.0
12.3
4.7
1.7
13.1
Total TIV 598,714 576,635
2017
204,887
35.5%
2017
70,445
12.2%
2017
301,303
52.3%
Perodua
227,243 UMW Toyota
66,562
Others
304,909
Source: Malaysian Automotive Association
Other Carmakers’ Sales and Market Share
UMW HOLDINGS BERHAD
• UMW Group sold 293,805
units in 2018 with a market
share of 49.1% (2017 – 47.7%)
12UMW HOLDINGS BERHAD
EQUIPMENT
13UMW HOLDINGS BERHAD
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
14UMW HOLDINGS BERHAD
Heavy Equipment
UMW Komatsu Heavy Equipment Sdn Bhd
UMW Corporation
(74%)
Komatsu Ltd
(26%)Joint venture
effective
1 October 2018
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:
15UMW HOLDINGS BERHAD
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.
▪ 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
▪ Revenue contribution in 2018 – Malaysia (50%), Singapore (about 30%) and Vietnam (15%).
Strong market leadership position
Since 1965
16UMW HOLDINGS BERHAD
Industrial Equipment
Marine & Power
Compressors Generators
Oil spill equipmentMarine engines
17UMW HOLDINGS BERHAD
MANUFACTURING
& ENGINEERING
18UMW HOLDINGS BERHAD
MANUFACTURING & ENGINEERING SEGMENT
Key Products
Aerospace Component
Lubricants
Auto Components
Aero
Engine
Fan
Cases
Lubricants &
Fluids
Fluids &
Chemicals
Lubricants &
Fluids
(China)
Shock
Absorbers
Automotive
Components
• Manufacture and assemble automotive shock
absorbers and motorcycle suspension units for both
OEM and REM markets.
• Export to more than 38 countries from Malaysia.
19UMW HOLDINGS BERHAD
MANUFACTURING & ENGINEERING SEGMENT
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. Started generating revenue in 2018.
• 2019 - Ramp-up production.
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
20UMW HOLDINGS BERHAD
FINANCIAL
PERFORMANCE
21
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
13,95114,932
14,442
10,43711,06711,304
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
566382
527 486
994
653 652
(1,658)
(641)
345
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
▪ Dividend Payout Ratio (%)
57.7 59.0
75.8 75.2
58.8
78.7 76.1
>100.0
0.0 0.0
25.6
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
37.0
20.030.0 31.0
50.044.0 41.0
20.0
0.0 0.07.5
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
March 08
Share Split from
RM1.00 to RM0.50 each
UMW HOLDINGS BERHAD
(37)
22UMW HOLDINGS BERHAD
1Q2019: FINANCIAL PERFORMANCE SNAPSHOT
UMW HOLDINGS BERHAD
(RM‘m) 1Q2019 1Q2018Y-o-Y
change4Q2018
Q-o-Q
change
Revenue from
Continuing
Operations2,774.8 2,415.3 14.9% 2,681.8 3.5%
PBT from
Continuing
Operations140.7 154.3 (8.8%) 103.9 35.3%
PATAMI from
Continuing
Operations85.7 95.0 (9.8%) 15.4 >100%
PATAMI/(LATAMI)
from Discontinued
operations0.8 (20.9) >100% (0.3) >100%
Consolidated
PATAMI86.5 74.1 16.8% 15.1 >100%
01
02
03
04
05
23UMW HOLDINGS BERHAD
AUTOMOTIVE AND EQUIPMENT SEGMENTS IMPACTED BY
DEPRECIATION COST AND MARGINS, RESPECTIVELY
RM’m
UMW HOLDINGS BERHAD
(RM3m)
RM45m
RM126m
RM2m
RM42m
RM124m
M&E
Equipment
Automotive
1Q2019 1Q2018
Combined total PBT
1Q2019: RM168m
1Q2018: RM168m
24UMW HOLDINGS BERHAD
GROUP’S DEBT POSITION
Debt-to-equity ratio
46%
As at 31 Mar 2019
50%
As at 31 Dec 2018
Gross debt-to-equity ratio
29%
As at 31 Mar 2019
30%
As at 31 Dec 2018
Net debt-to-equity ratio
25
STRATEGY
AND
CURRENT
PROSPECTS
UMW HOLDINGS BERHAD
26
AUTOMOTIVE STRATEGY – TOYOTA
UMW HOLDINGS BERHAD
To regain No. 1 position in non-National segment
Increase localisation – to improve cost and pricing competitiveness
Expand CKD model line-up
Focus on EEV models
Commenced operations in January 2019
Boost capacity and capability
▪ High automation
▪ 50% more efficient compared to Shah Alam plant
▪ Annual capacity – 50,000 units (1-shift operations)
Currently produces Toyota Vios and Toyota Yaris
BUKIT RAJA PLANT
27
AUTOMOTIVE – TOYOTA2019 – New model launches to drive sales
UMW HOLDINGS BERHAD
UMW
Toyota Motor
Intense competition –
wider choices for
consumers
2019 PROSPECTS
Additional depreciation
expenses from the new plant
Expand model line-up
FOREX
volatility
Stringent
loan
approvals
Challenges impacting sales and
profit margin1
• Slew of models were introduced in 2019 so far...
ALL-NEW VIOS
(January)
IMPROVED C-HR
(January)
ALL-NEW YARIS
(April)
IMPROVED AVANZA
(May)
• Launches in late 2018 – all-new Camry and all-new Rush
Higher localisation2
• Higher local content of Toyota model line-up - Vios and Yaris
local content is c. 80%
3 Cost optimisation
• High automation and better efficiency in Bukit Raja plant
soften impact of depreciation
75,000 units
(+13% Y-o-Y)
2019
sales target
28
AUTOMOTIVE – PERODUALeverage on excellent brand perception to penetrate new model segments
UMW HOLDINGS BERHAD
Perodua
Affordable
Quality entry-level
vehicles
Improve model offering in popular segments
Strong
track
record
Strong
support
from
partner
1
• Aruz was introduced in January 2019
• Perodua targets to sell 30,000 units of Aruz in 2019
Perodua continues to dominate the
Malaysian market
ARUZ
(January)
235,000 units
(+3% Y-o-Y)
2019
sales target
2019 PROSPECTS
29
EQUIPMENT STRATEGY
▪ Reinforcing our partnership with
Komatsu
▪ Penetrate into new technology-driven
solutions such as Smart Construction
Heavy Equipment
▪ To be a total solutions provider
▪ Leveraging on Internet of Things (IoT)
▪ Expanding fleet management / rental
business
Industrial Equipment
Strengthening partnership and innovate new value-
added solutions and services
UMW HOLDINGS BERHAD
30
EQUIPMENT2019 – Reinforcing market position in the urbanised sectors
UMW HOLDINGS BERHAD
HEAVY EQUIPMENT INDUSTRIAL EQUIPMENT
Opportunities in the domestic market1
• Continuation/revival of mega infrastructure
projects such as:
o Pan Borneo Highway Sabah
o Gemas-JB electrified rail double
tracking
o LRT 3 / MRT 2
o East Coast Rail Line (ECRL)
o Bandar Malaysia project
Venture into the leasing business
model for Malaysia and Singapore5
Further expansion into the leasing
business model1
• Companies are shifting to the asset-light
model and prefer to lease the equipment
rather than outright purchase
• Better margins
• Good secondary market for industrial
equipment
Ride on the urbanisation of Vietnam2
• Vietnam is slated to be the next high-
performing economy and is a major
beneficiary of the US-China trade war –
presents opportunity to tap into the
manufacturing and e-commerce sector
Wider product line-up3
Papua New Guinea to contribute
higher from gold mining and
construction sectors
2
First to offer 5-years/10,000 hours
warranty (for PC210 only)4
31
M&E STRATEGY
Further expansion into high-value / advanced manufacturing
▪ Plant expansion and
modernisation initiatives for
KYB-UMW
▪ Improve synergies to increase
localisation
▪ Expansion of products and
services
1To expand automotive
components business
▪ Optimising aerospace
manufacturing capabilities
▪ Diversify into non-aerospace
related projects
Explore opportunities in
the HVM space2
▪ Entry into new markets in
ASEANExpansion of lubricants
business3
UMW HOLDINGS BERHAD
32
MANUFACTURING & ENGINEERING2019 - Increase production of fan cases and shock absorbers
UMW HOLDINGS BERHAD
Further ramping up production of fan
cases01
02
▪ The production of fan cases is expected to
double in 2019
▪ Losses at UMW Aerospace is expected to
narrow with higher delivery; profitable in 2020
Improving demand for shock absorbers
▪ To increase production to cater to strong
demand from OEM and REM segments
▪ Commencement of plant expansion and
modernisation initiatives to increase
capacity and efficiency
03Grow lubricants business
▪ Focusing on home-grown GRANTT lubricants
33
UNLOCKING VALUE OF OUR ASSETS
Will be developed into a High-Value Manufacturing Park – by clusters
Signed MOU with MATRADE and Invest Selangor to promote land
UMW Aerospace is the pioneer tenant taking up 24 acres
Three other Malaysian companies collectively took up c.16 acres of land
There has been strong interest with several deals in the pipeline
UMW’S operations in Shah Alam to move to Serendah within the next few years
861 acres of land in Serendah
Company Acreage
Multi-Code Electronics Industries (M) Bhd 8.25 acres
Private local company 5.3 acres
T7 Kilgour Sdn Bhd 2.0 acres
UMW HOLDINGS BERHAD
34UMW 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
General Manager
Investor, Media Relations & Sustainability
Email: [email protected]
Telephone: +603 20252104
THANK YOU
Roza Shahnaz Omar
Director, Group Strategy
UMW Corporation Sdn. Bhd.