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UMW Holdings Berhad
BRIEFING ON
1Q14 RESULTS
26 May 2014
2
AGENDA
1. SHAREHOLDING STRUCTURE
2. GROUP RESULTS FOR 1Q14
3. SEGMENTAL RESULTS
• AUTOMOTIVE DIVISION
• EQUIPMENT DIVISION
• OIL & GAS DIVISION
• MANUFACTURING & ENGINEERING DIVISION
• OTHERS
4. BALANCE SHEET HIGHLIGHTS
5. PROSPECTS FOR 2014
6. Q & A
UMW HOLDINGS BERHAD
3
SHAREHOLDING STRUCTURE As at 30 April 2014
Permodalan Nasional Berhad (PNB)/
PNB Managed Unit Trust Funds, 54.76%
(April 2013 = 50.14%)
Employees Provident Fund Board, 16.61%
(April 2013 = 13.56%)
PNB and EPF shareholdings are based on direct interest and deemed interest
*
Other Local Shareholders, 12.46%
(April 2013 = 11.36%)
Foreign Shareholders, 16.17%
(April 2013 = 24.94%)
UMW HOLDINGS BERHAD
4
SUMMARY OF GROUP RESULTS
RM’ million 1Q14 1Q2013
Restated Variance
FY2013
Audited
Revenue 3,583.4 3,359.3 6.7% 13,951.5
Profit before
taxation 479.4 432.7 10.8% 1,435.7
Profit after taxation 392.1 335.2 17.0% 1,084.2
Non-controlling
Interests 156.5 115.5 35.5% 431.3
Profit to the equity
shareholders of the
company
235.5 219.7 7.2% 652.9
UMW HOLDINGS BERHAD
5
AUTOMOTIVE DIVISION
UMW HOLDINGS BERHAD
• Launched on 13
October 2013
• Plans to sell over
600 units by the
end of 2014
• Launched on 20
January 2014
• YTD April, more than
3,000 units have been
delivered.
Perodua Myvi XT
• Launched on 10 April
2014
• The XT, which means
extra, comes new seat
fabric, alloy rims,
improved audio system
with USB & Bluetooth.
Toyota Camry 2.0G X
• Launched on 18
March 2014
• (‘X’ stands for
‘Exquisite Luxury’)
• New colour of leather
upholstery; dark wood
trim; rear-view
camera.
Toyota Innova 2.0G
• Launched on 31
March 2014
• The radiator grille,
with three horizontal
slats, has been
enlarged
• The double layer front
bumper has been
redesigned
Perodua Alza
• Launched on 10 Jan 2014
• 2 improvements:-
i. ISOFIX points for child
safety seats
ii. splitting the 3rd row
seat in half to allow
greater customisation
6
SEGMENTAL RESULTS
BUSINESS SEGMENT - AUTOMOTIVE
1Q14
RM’000
1Q13
RM’000
Variance
FY2013
RM’000
(Audited)
Revenue 2,656,435 2,392,089 11.1% 10,022,984
PBT 406,567 368,055 10.5% 1,413,474
UMW TOYOTA MOTOR
- Toyota sold 24,185 units in 1Q14 compared with 20,137 units in 1Q13 (+20.1%).
- Lexus sold 449 units in 1Q14 compared with 229 units in 1Q13 (+96.1%).
- The all-new Toyota Vios was launched in October 2013.
- The all-new Toyota Corolla Altis was launched on 20 January 2014.
- A new variant of The Toyota Camry 2.0G X was introduced on 18 March 2014. It provides an
additional option for customers who are looking for a different look and feel from the popular
2.0G.
- Introduced an improved Toyota Innova for 2014 on 31 March 2014.
- Started offering the Toyota Alphard and Toyota Previa (both CBU Japan) as part of the line-up
for the Malaysian market on 4 April 2014.
UMW HOLDINGS BERHAD
7
SEGMENTAL RESULTS
BUSINESS SEGMENT - AUTOMOTIVE
PERODUA
- Registered sales of 44,024 units for 1Q14 compared with 46,696 units in 1Q13 (-5.7%).
- However, Perodua registered better profit before taxation due to higher contribution from
the after-sales segment, due to the higher number of units in operations.
- Perodua introduced the improved New Alza including greater safety features, enhanced
audio-visual upgrades as well as a more versatile interior design on 10 January 2014.
- Perodua launched a new Myvi variant dubbed the Myvi XT, tailored specifically for today’s
Gen Y’s as well as Gen Z’s automotive needs on 10 April.
UMW HOLDINGS BERHAD
8
• UMW companies sold 68,658 units as of March 2014 with a market share of 43%.
UMW Toyota24,63415.4%
Perodua44,02427.5%
Others91,25257.1%
UMW GROUP’S MARKET SHARE Units & Market Share (%) YTD March 2014 Brand YTD March 2014
Market
Share %
Units
Proton
Nissan
Honda
Hyundai, Kia
Volkswagen
Others
20.5
7.5
9.8
2.6
1.7
15.0
32,734
11,957
15,627
4,199
2,704
24,031
Total 57.1 91,252
(1Q13)
Perodua
46,696
29.6%
(1Q13)
UMW Toyota
20,366
12.9% (1Q13)
Others
90,602
57.5%
UMW HOLDINGS BERHAD
9
UMW represents all of the above principals for some of the world’s most
recognised products in:-
• Agriculture
• Construction
• Forestry
• Mining
• Industrial and manufacturing
• Industrial cleaning – food and beverages, material handling and logistics
EQUIPMENT DIVISION
UMW HOLDINGS BERHAD
10
SEGMENTAL RESULTS
BUSINESS SEGMENT - EQUIPMENT
1Q14
RM’000
1Q13
RM’000 Variance
FY2013
RM’000
(Audited)
Revenue 434,941 479,387 (9.3%) 1,705,458
PBT 39,098 59,080 (33.8%) 195,838
Lower revenue was due to:-
1) Papua New Guinea
- Due to the low gold prices, there is a slowdown in the gold mining activities.
- We are focusing on sales of spare parts and maintenance service.
2) Myanmar
- The jade mining activities have not resumed due to some internal issues.
- We continue to monitor our operations closely and are now concentrating on selling of parts.
- We are also exploring other business segments such as supplying construction equipment,
as we have exclusive Komatsu franchise for Myanmar.
The industrial equipment business (including leasing) is expanding strongly.
For 1Q14, 56% of total revenue for this segment came from the industrial equipment business.
UMW HOLDINGS BERHAD
11
OIL & GAS DIVISION
UMW HOLDINGS BERHAD
12
SEGMENTAL RESULTS
BUSINESS SEGMENT – OIL & GAS
1Q14
RM’000
1Q13
RM’000 Variance
FY2013
RM’000
(Audited)
Revenue 195,573 157,724 24% 737,752
PBT 58,303 20,623 >100% 206,849
i. The increase in revenue for 1Q14 was due to:-
- Full contribution from NAGA 4 which commenced operations on 5th April 2013.
- Higher daily operating rates for NAGA 2; and
- Higher operating days for NAGA 1.
ii. In tandem with the increase in revenue, profit before taxation increased by 183% to RM58
million from RM23 million a year ago. In addition, the profit before taxation improved
further from the higher investment income from placement of the IPO proceeds.
UMW HOLDINGS BERHAD
13
MANUFACTURING & ENGINEERING DIVISION
UMW HOLDINGS BERHAD
14
SEGMENTAL RESULTS
BUSINESS SEGMENT – MANUFACTURING & ENGINEERING
1Q14
RM’000
1Q13
RM’000 Variance
FY2013
RM’000
(Audited)
Revenue 181,915 177,131 2.7% 735,498
PBT 9,621 9,388 2.5% (39,164)
Malaysia operations
- All Malaysian operations are doing well. Sales of both, automotive components and
lubricants, have been encouraging.
- The KYB-UMW Group is now exporting its products to 27 countries.
- KYB is focusing on increasing its market share in the global replacement market for shock
absorbers. 2013 sales was 838,000 units. Target of 2 million pieces by 2020.
China operations
- The lubricant business in China is doing very well, despite being only 3 years in operations.
- There has been a jump in revenue due to strong demand from FAW Mazda and Hongqi.
- We are bidding to supply to other major automotive players in China.
UMW HOLDINGS BERHAD
15
SEGMENTAL RESULTS
BUSINESS SEGMENT – MANUFACTURING & ENGINEERING
UMW HOLDINGS BERHAD
India operations – The automotive industry in India
(source: Society of Indian Automobile Manufacturers (SIAM))
We have 3 automotive components manufacturing facilities in India – 2 in Chennai and 1 in
Pune.
Results
i) Better sales was registered in 1Q14.
ii) However, the automotive business continues to be very challenging.
Apr 2012 – Mar 2013 Apr 2013 – Mar 2014 Variance
Passenger vehicles 2,686,429 2,523, 901 (6.05%)
Commercial vehicles 793,150 632,696 (20.2%)
Total 3,479,579
3,156,597 (9.3%)
16
SEGMENTAL RESULTS
BUSINESS SEGMENT – OTHERS
1Q14
RM’000
1Q13
RM’000 Variance
FY2013
RM’000
(Audited)
Revenue 130,719 153,747 (15.0%) 826,627
PBT (34,210) (27,286) (25.4%) (341,324)
The main contributors to the losses in this segment are:-
i) Zhongyou BSS (Qinhuangdao) Petropipe Co. Ltd. & Shanghai BSW Petro-pipe Co. Ltd.
(manufacturers of LSAW and SSAW oil & gas transmission pipes).
Issues
The slowdown in major pipeline projects has affected the demand for our oil & gas transmission
pipes.
Counter-measures
- We have intensified our international marketing activities and have representatives in Dubai
and Houston. We are also targeting South America, the Middle-East and North Africa regions.
- For pipes, we have USD15 million orders in hand & USD132 million of tender outstanding.
UMW HOLDINGS BERHAD
17
SEGMENTAL RESULTS
BUSINESS SEGMENT – OTHERS (con’t)
UMW HOLDINGS BERHAD
ii) Arabian Drilling Services L.L.C, Oman
Issues
- There has been a delay in the start of a project for Daleel Petroleum in Oman due to the late
delivery of an onshore drilling rig.
Counter-measures
- We have received long-term contracts (4 years) for two of our rigs in Oman, Ghazal III and
Ghazal IV with the Petroleum Development of Oman (PDO), a Shell operating company.
- One of our rigs, Ghazal 5, have started working recently in May.
18
PROSPECTS FOR 2014
AUTOMOTIVE DIVISION
Malaysian Automotive Association’s target for this year is 670,000 units, 2.2%
increase compared to 2013 TIV of 655,793 units.
YTD April 2014, the industry has registered a 4% growth. Sales in 2Q14 is also
expected to be strong, leading to the festive season in late-July.
UMW Group’s combined total sales is forecasted to be about 295,400 units for 2014.
UMW TOYOTA MOTOR
• Sales forecast for Toyota (97,000 units) & Lexus (1,400 units) = 98,400 units.
PERODUA
• Sales forecast for Perodua is 197,000 units.
• The company plans to launch a new model in the second half of this year.
• The second plant in Rawang is expected to be operational by the second half
of this year.
UMW HOLDINGS BERHAD
19
PROSPECTS FOR 2014
EQUIPMENT DIVISION
• The segment is expected to remain challenging if the drop in commodity
prices continues at the current low level and the suspension of mining
activities is prolonged.
• However, the segment is expected to sustain its performance from the sale of
parts.
• We are expanding our equipment leasing business. The demand for this
segment is increasing and this business gives us better margins. We hope to
increase the leasing business to 50% of our total industrial equipment
business from 30% currently.
UMW HOLDINGS BERHAD
20
PROSPECTS FOR 2014
MANUFACTURING & ENGINEERING DIVISION
The segment is expected to sustain its performance through better sales of lubricant
products and automotive components, such as shock absorbers and filters.
India operations
- The general election in India has been concluded. The economy is expected to
improve with the pro-business government taking control.
- Automotive sales is expected to pick-up in the second half of the year.
- The bank loans for our operations in India are in United States Dollar. The Indian
Rupee has been strengthening.
31 December 2013: USD1 = INR61.8194
26 May 2014: USD1 = INR58.4305
UMW HOLDINGS BERHAD
21
PROSPECTS FOR 2014
OIL & GAS DIVISION
• We have taken delivery of NAGA 5 on 29th April 2014. We have secured a
contract with NIDO Petroleum Philippines Pty. Ltd. for NAGA 5, with a
contract value of approximately USD7 million. The rig started operations for
this contract on 12th May 2014.
• We have also announced purchase of 3 jack-up drilling rigs.
• The first of the three will be delivered to us in September this year, with the
second rig targeted for December.
• Our hydraulic workover unit, GAIT 3, has commenced a 2-year firm contract
with a 1-year option with PETRONAS Carigali in March 2014.
• GAIT 2, GAIT 5 and GAIT 6 are also expected to be income generating
during most part of the remaining period of 2014.
UMW HOLDINGS BERHAD
22
THANK YOU
UMW HOLDINGS BERHAD