Citi ASEAN Investor Conference 8Annual General Meetingdemoweb11.simedarby.com/simedarby_d06/clients/simedarby_group... · Citi ASEAN Investor Conference 5 June 2015 Singapore . 2

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Annual General Meeting 13 November 2014

8th Annual General Meeting 13 November 2014

Citi ASEAN Investor Conference5 June 2015Singapore

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DisclaimerThis presentation may contain forward-looking statements by Sime Darby Berhad that reflect management’s

current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently

available information. These statements are based on various assumptions and made subject to a number of

risks, uncertainties and contingencies. Actual results, performance or achievements may differ materially and

significantly from those discussed in the forward-looking statements. Such statements are not and should not

be construed as a representation, warranty or undertaking as to the future performance or achievements of

Sime Darby Berhad and Sime Darby Berhad assumes no obligation or responsibility to update any such

statements.

No representation or warranty (either express or implied) is given by or on behalf of Sime Darby Berhad or its

related corporations (including without limitation, their respective shareholders, directors, officers, employees,

agents, partners, associates and advisers) (collectively, the "Parties") as to the quality, accuracy, reliability or

completeness of the information contained in this presentation (collectively, the "Information"), or that

reasonable care has been taken in compiling or preparing the Information.

None of the Parties shall be liable or responsible for any budget, forecast or forward-looking statements or

other projections of any nature or any opinion which may have been expressed in the Information.

The Information is and shall remain the exclusive property of Sime Darby Berhad and nothing herein shall

give, or shall be construed as giving, to any recipient(s) or party any right, title, ownership, interest, licence or

any other right whatsoever in or to the Information herein. The recipient(s) acknowledges and agrees that this

presentation and the Information are confidential and shall be held in complete confidence by the recipient(s).

No part of this presentation is intended to or construed as an offer, recommendation or invitation to subscribe

for or purchase any securities in Sime Darby Berhad.

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Presentation Outline

Who We Are

Sime Darby’s Transformation along with Malaysia

Sime Darby’s Key Strengths

Sime Darby’s Growth Agenda

Challenges and Industry Outlook

4

Australia

New Zealand

Liberia

South Africa

Germany

The NetherlandsUnited KingdomCanada

United States of America

China

Hong Kong

Macau

Japan

South Korea

VietnamThailand

Maldives

Malaysia

SingaporeIndonesiaPapua New Guinea

Solomon Island

New Caledonia

26 Countries & Territories

Taiwan

Over 103,507 Employees

Sime Darby TodayA Diversified Multinational with 5 Core Businesses in Key Growth Areas

PBIT FY2014

RM4.2bn

Revenue FY2014

RM43.9bn

Net Earnings FY2014

RM3.35bn

Market Capitalisation

RM58.6bnAs at 30 June 14

Profit Contribution of Each Division (FY2014)

PLANTATION INDUSTRIAL MOTORS PROPERTY E&U CHINA OTHERS

5

Sime Darby’s Shareholding StructurePNB and EPF are Sime Darby’s Major Shareholders

*As at 28 May 2015

Shareholding Structureas at

30 Apr’15

PNB 53%

EPF 13%

34%

Others

RM51.0bnMarket Capitalisation*

RM8.49Share Price*

14.1%Foreign Shareholding(as at 30 April 2015)

6

A Leading Multinational Corporation Market Leading Positions in Industrial and Consumer-based Businesses

One of the largest Caterpillar Dealers in the World

#1 World Producer

of Certified Sustainable Palm Oil (CSPO)

#1 Company in the World

to Fully Sequence, Assemble & Annotate the Oil Palm Genome

One of the largest Caterpillar Dealer in the Asia Pacific region in terms of units sold

#1 Listed Oil Palm

Plantation Company in terms of Planted Area

One of the Top BMW Dealers in the World

Top 3 Property

Developer in Malaysia in terms of Revenue

#1 container port operator within

Shandong’s Yellow River Delta handling over 100,000 TEUs of containers in FY2014

One of the Top Rolls Royce Dealers in the World

#1 Township Developer

in terms of land bank size

7

24.9%

26.6%

40.4%

6.4%

1.5% 0.2%

* Note: Profit before interest and tax before corporate expenses and discontinued operations. The discontinued operations were in relation to the disposal of the power generation business under the Energy & Utilities Division

FY2014 Key Divisional HighlightsStrong Earnings Visibility across the Group’s Core Businesses

BY

DIVISION

BY

GEOGRAPHY

44.7%

24.1%

15.1%

14.3%

0.5% 1.3%

FY2014 REVENUE: RM43.9bn FY2014 PBIT: RM4.2bn*

Malaysia32%

Australasia22%

China/HK23%

Indonesia6%

SE Asia ex Msia

13%Others

4%Malaysia47%

Australasia12%

China/HK10%

Indonesia21%

SE Asia ex Msia

11%Others

-1%

8

FY2014 Key Operational HighlightsDivisional Key Performance Drivers

FFB Production

9.4mn MTOER

21.9%

FFB Yield

20.4 MT/ha

Plantation Industrial

Percentage of Industry Net Sales

64%

Motors

Property E&U China

Units Sold

92,112

Gross Sales Value

RM2.8bn

Port Operations Throughput

31.2mn MT

9

Sime Darby’s FY2014 Borrowings

It is the Group’s policy to target at least 70% of the long-term borrowings to be on fixed rate or swapped to fixed; unless it is with justification that floating rate is retained to

manage the Group’s overall borrowing cost

It is the Group’s policy to target at least 70% of the long-term borrowings to be on fixed rate or swapped to fixed; unless it is with justification that floating rate is retained to

manage the Group’s overall borrowing cost

LT Borrowings

73%

Term Loans

36%

Islamic Financing

3%

Islamic Medium Term

Loans

22%

Sukuk

23%

FY2014Total

BorrowingsRM11.2bn

Revolving Credits & Others

16%

ST Borrowings

27%

10

Sime Darby’s Corporate Credit RatingLatest ratings from rating agencies

A-/Negative/--(Updated as at 28/5/15)

A/Negative(Updated as at 30/3/15)

A3/Stable(Updated as at 15/4/15)

AAAID/MARC-1ID(Updated as at 15/4/15)

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Cash will only include cash placed in conventional accounts and

instruments, whereas cash placed in Islamic accounts & instruments will be

excluded from the calculation

Sime Darby is a Shariah-compliant companyFulfills Shariah-screening methodology of Securities Commissions Malaysia

<5% of company’s total revenue




<33% cash over total assets

<33% conventional debts over total assets

0.2% exposureLess than 0.01%

exposure

0.4% exposure 6.9% exposure 11.5% exposure

Less than 0.01% exposure

Conventional banking & insurance

Gambling & non-compliant entertainment

Liquor & liquor-related

activities

Tobacco & tobacco-related

activities

Interest income from conventional

accounts

Rental received from non-compliant activities

Share trading,

stockbroking business

Hotel and resort

operations Debt will only include interest-bearing debt whereas Islamic debt/financing or sukukwill be excluded from the calculation

12


Who We Are





13

2015 Mkt Cap*

RM51bnFounded by William Sime

& Henry Darby

Founded by William Sime

& Henry Darby

CAT Dealership in China

CAT Dealership in China

Subang Jaya, 1st Property Township in

Selangor

Subang Jaya, 1st Property Township in

Selangor

BMW Dealership

in Singapore

BMW Dealership

in Singapore

Guthrie Purchased Minamas

Plantation in Indonesia

Guthrie Purchased Minamas

Plantation in Indonesia

Ports and Water

Managementin China

Ports and Water

Managementin China

Merger that Created the

World’s Largest Listed Oil Palm

Plantation Company

Merger that Created the

World’s Largest Listed Oil Palm

Plantation Company

Acquisition of Bucyrus Dealership from CAT

Acquisition of Bucyrus Dealership from CAT

First Oil Palm Planting

in Liberia

First Oil Palm Planting

in Liberia

Disposal of the Oil & Gas

Business

Disposal of the Oil & Gas

Business

Acquisition of a 40% Stake in the Battersea Power Station

Project

Acquisition of a 40% Stake in the Battersea Power Station

Project

50-50 JV Partnership

with Ramsay Healthcare

50-50 JV Partnership

with Ramsay Healthcare

Disposal of the Malaysian & Thai Power businesses

Disposal of the Malaysian & Thai Power businesses

Acquisition of New Britain Palm Oil Ltd

Acquisition of New Britain Palm Oil Ltd

20

09

20

11

20

12

20

13

20

14

20

15

19

10

19

29

19

72

19

74

19

79

20

01

20

05

20

07

CAT Dealershipin Malaysia

CAT Dealershipin Malaysia

8 millionPopulation

USD299GDP Per Capita

1960

30 millionPopulationUSD10,538GDP Per Capita

2013

Source : World Bank, Company Reports*As at 28 May 2015

Sime Darby’s TransformationEvolution in line with the Nation’s Growth

2000s Mkt Cap

RM14bn1990s Mkt Cap

RM10bn

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Sime Darby’s TransformationCreating Value through Strategic Corporate Exercises

RM1.9bnJoint acquisition of the Battersea Power Station site in London, together with SP Setia & EPF, for £400mn in Jul’12

RM1.9bnJoint acquisition of the Battersea Power Station site in London, together with SP Setia & EPF, for £400mn in Jul’12

RM773.8mnAcquisition of a 30% stake in E&O Bhd in Aug’11

RM773.8mnAcquisition of a 30% stake in E&O Bhd in Aug’11

RM689.5mnDisposal of the Oil & Gas business in May’11

RM689.5mnDisposal of the Oil & Gas business in May’11

RM1.1bnAcquisition of the Bucyrus dealership from Caterpillar in Dec’11

RM1.1bnAcquisition of the Bucyrus dealership from Caterpillar in Dec’11

RM6.0bnAcquisition of New Britain Palm Oil Limited (NBPOL) for £1bn in Feb’15

RM6.0bnAcquisition of New Britain Palm Oil Limited (NBPOL) for £1bn in Feb’15

London

RM823mnDisposal of the Malaysian & Thai power businesses between Apr’14 and Jun’14

RM823mnDisposal of the Malaysian & Thai power businesses between Apr’14 and Jun’14

RM340.6mn50-50 JV between Sime Darby’s Healthcare business and Ramsay Healthcare in Mar’13

RM340.6mn50-50 JV between Sime Darby’s Healthcare business and Ramsay Healthcare in Mar’13

RM100mnAcquisition of a 30% stake in Verdezyne, a US-based industrial biotechnology company in Apr’14

RM100mnAcquisition of a 30% stake in Verdezyne, a US-based industrial biotechnology company in Apr’14

California

RM1.1bnTotal Capex for Acquisition into new territories, new distributorships/dealerships and new showrooms in Asia Pacific

RM1.1bnTotal Capex for Acquisition into new territories, new distributorships/dealerships and new showrooms in Asia Pacific

Liberia

Australia

Papua New GuineaIndonesia

Malaysia

ThailandVietnam

Taiwan

RM426mnTotal Invested Capital in Liberia as at 31st Mar ‘15

RM426mnTotal Invested Capital in Liberia as at 31st Mar ‘15

China

ASIA PACIFICASIA PACIFIC

Acquisition

Divestment

Capex for expansion

RM1.4bnExpansion of port operations in Weifang, Shandong Province

RM1.4bnExpansion of port operations in Weifang, Shandong Province

RM70.7mnDisposal of Dunlopillo in Jan’12

RM70.7mnDisposal of Dunlopillo in Jan’12

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Who We Are





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Sime Darby’s Key StrengthsMaintaining a Robust Conglomerate Structure

As a conglomerate, the Group is able to consistently reap these benefits despite the volatility in the diverse

businesses that it operates in

Earnings Stability

Achieving steady earnings through diversification in terms of geography, value chain segments and balance between cyclical and defensive businesses.

Centre of Excellence

Able to benefit from functional and operational best practices of the corporate centre and sharing of resources.

Lower Cost of Capital

Access to debt capital at lower rates of interest through the parent company and leverage on the strengths of its balance sheet.

Business Synergies

Able to realise additional value from vertical and horizontal synergies across business units within current or adjacent business lines.

1 3

2 4

17

-40

-20

0

20

40

60

80

100

RM'bn

Net Assets Payables, provision & other liabilities

Property,plant & equipment Net asset held for sale

Total cash & equivalent Receivables and other assets

+4%

AS

SE

TS

(R

M’b

n)

LIA

BILIT

IE

S

(R

M’b

n)

FY2014FY2012 FY2013

+5%Net Assets RM26.9bn

Net Assets RM28.0bn

Net Assets RM29.4bn

Debt/Equity37%

Debt/Equity36%

Debt/Equity38%

Sime Darby continues to deliver sustainable value and long term financial stability

Sime Darby’s Key StrengthsStrong balance sheet with good access to funds

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Sime Darby’s Key StrengthsSustainable long term returns to shareholders

FY2014 Dividend Yield*

3.7%

Dividend Payout FY2011 – FY2014

FY2014 Dividend PayoutRatio

65%

* Based on the closing share price on 30 June 2014 of RM9.67 per share and the total dividend for the financial yearof 36 sen

FY2014 Total Cash Payout

RM868.4mn-44% (YoY) due to higher DRP take-up rate

1,803

2,1032,043

2,183

49%51%

55%

65%

0%

10%

20%

30%

40%

50%

60%

70%

1,500

1,600

1,700

1,800

1,900

2,000

2,100

2,200

2,300

FY2011 FY2012 FY2013 FY2014

RM’mn

Dividend Payout (in RM'mn) Dividend Payout Ratio (RHS)

19

Sime Darby’s Key StrengthsDisciplined approach to ensure capital efficiency

Capital Allocation Based On:

Attractive industries with

good long-term outlook

and sustainable growth

prospects (attractive ROIC

trend)

Aims to gain leading position in terms of size, returns, efficiency etc

Exceeding

industry specific

hurdle rates

(10% - 15%)

Ensures sustainable profit contribution

4. Industry Outlook 3. Returns

1. New Growth 2. Industry Leadership

Plantation

46%

Property

7%

Industrial

16%

Motors

15%

E&U

15%

Others

1%

Budgeted CAPEX FY2015

RM2.6bn*

* Excluding the acquisition of NBPOL

20

Sime Darby’s Key StrengthsEnhancement in Corporate Governance

Flagship Subsidiary BoardsIn place to effectively manage the Group’s key businesses

1

Revamp of theReporting StructureEnsure effective Group oversight over divisional activities

5

Enhanced Group Policies & Authorities Incorporate policies on insider dealings, whistleblowing and new limit of authority

2

Code of Business ConductGuidance on ethical standards of behaviour expected of all Directors and employees

3

Group Compliance OfficePrevent occurrence of non-compliance

4

Corporate Integrity PledgeOne of the first corporates to signthe pledge as part of its anti-corruption measures

6

7 Risk ManagementEnsure adequate processes in place to manage the key risks affecting the Group

21

Sime Darby’s Key StrengthsIndustry Leader in driving Sustainability Agenda

2.14 mn MTCertified Sustainable Palm Oil (CSPO) as at 30 Jun’14

0.49 mn MTCertified Sustainable Palm Kernel Oil (CSPK) as at 30 Jun’14

330,000 MT/p.a.Sime Darby Golden Jomalina, the world’s Largest Producer of Segregated CSPO

2.4 mn MTTotal Sales of RSPO-certified Palm Products for FY2014

98%Fully RSPO-certified Mills (Malaysia & Indonesia) as at 31 Mar’15

Group Sustainability ReportSuccessfully published in 2012, 2013 and amalgamated into 2014 Annual Report

(Integrated Reporting approach)

For more information: http://www.simedarbyplantation.com/Sustainability.aspxhttp://www.carbonstockstudy.com/Home

High Carbon Stock (HCS) Study A study co-funded by Sime Darby Plantation to guide future developments &

delineation of HCS forests

22

Sime Darby’s Key StrengthsStrong Focus on Research and Innovation

CALIX 600: Superior seeds

Building Information Modelling

PLANTATION INDUSTRIAL

Integrated IT systems

PROPERTYMOTORS

Customer Feedback Management & Business Process

Improvement

Incorporating Research & Innovation To Enhance Our Businesses

R&D breakthroughs in biotechnology & innovation

23

Sime Darby’s Key StrengthsWins Prestigious Awards

Sime Darby is the first Malaysian company to be included in the coveted

2014 Global Aon Hewitt Top Companies for Leaders list

Sime Darby is ranked first for Best Company in Malaysia for

Corporate Governance by Asia

Money

Sime Darby Property is recognised

as one of the Top 10 Prestigious Property Developer 2015

Sime Darby Property won the 2015 Frost & Sullivan Malaysia Building Construction New Product

Innovation Award

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Who We Are





25

Understanding the operating challengesKey challenges affecting Sime Darby’s businesses in the near term

A Challenging Environment

Increasing protectionism and tighter government regulations

Rising production costs such as

labour and materials

Rising pressures from NGOs on sustainability

agenda

Volatility of commodity prices i.e. crude palm oil and coal prices

Cooling globaleconomy particularly the Chinese economy

Higher cost of living to reduce

affordability

Scarcity of suitable greenfield land bank

and expensive brownfield

Fiscal tighteningand prevailing cooling measures

26Source: IMF 2015

Industry OutlookResilient GDP Growth in ASEAN Region (2014A vs 2016F)

3.1

1.8

0.8

7.1

2.9

5.55.2

3.0

4.6

5.6

Forecast GDP Growth in 2016

2.2

0.2

1.5

7.7

2.3

5.8

4.7

3.9

2.9

5.4

Actual GDP Growth in 2014

Sime Darby continues to ride on the economic growth in the countries it represents

All the countries where Sime Darby has presence in

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Relationship between oil consumption and population

Industry OutlookStrong fundamental for palm oil despite soft CPO price trend in CY2015

PLANTATION

Higher demand for palm oil driven by increased world population

% in total oil consumption

% in total population growth

Expect CPO price to trend within RM2,200-RM2,400 per MT in CY2015

Biodiesel mandates in Malaysia & Indonesia to boost palm oil sector

RM 2,400/MT

CY2015 ANALYST CONSENSUS

RM 2,300/MT

RM 2,200/MT

Indonesia imposes CPO export tax tofund domestic biodiesel development

Indonesia’s new ‘CPO plus margin’ formula to benefit integrated palm oil producer

Indonesia & Malaysia forecast 3mn MT and 660k MT of CPO to be used for

biodiesel blending, respectively in CY2015

Source: Research Reports, Oil World Jan’2015, WorldBank

World vegetable oil demand continues to be robust in the long run

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• Over the short to medium term, the current oversupply is expected to reduce and the market is forecasted to come back into balance, placing upward pressure on prices

• Newcastle thermal coal prices rebounded from a low of USD55/MT in early April to USD62/MT in early May (+14%)

• Price forecast estimates (Bloomberg) for 2015 & 2016 were revised to USD65/MT and USD69/MT respectively

• India & Brazil are expected to gain importance as centres of demand growth

• India is likely to overtake China as the largest metallurgical coal importer in 2023 (10-year CAGR of 6.8%)

Regional Metallurgical Coal Demand

Construction Sector Outlook in Malaysia

• The outlook for Malaysia’s construction sector remains positive, driven by continued investments by the government (RM48.5bn for 2015)

• The upcoming 11th Malaysian Plan is expected to also contribute significantly to the construction sector

Source : AME Group Strategic Market Study 2015

50

70

90

110

130

Newcastle Thermal Coal Futures (USD/MT)USD/MT

Industry OutlookLong-term fundamentals remain promising despite current slow down

Coal Pricing Moderation

Rising Demand for Australian Coal

29Source: CEIC, Research reports, WorldBank

INDUSTRY OUTLOOKModerate outlook for all the regions Sime Darby operates in

MOTORS

• Outlook remains challenging and competitive for the luxury vehicle segment

• Rising middle class will boost luxury car sales

• Weak economic outlook affecting automotive industry

• Showroom traffic is expected to improve gradually• Customers are more cautious in their spending in view of

rising general cost of living

• Cautious outlook for the mass market segment due to stiff competition

• Stiff competition is expected to continue in the luxury segment

30

Industry OutlookRising urban population in Malaysia to boost demand for affordable housing

PROPERTY

• 72% population living within 400m of public

transport route• Improved transportation will shift growth to the

suburban areas

5%

40%

2014 2030

Target 40% of Public Transport Modal Share By 20300

10

20

30

40

50

60

70

80

1960: 27%

Continued urbanization in Malaysia

2012: 74%

33 millionsMalaysia population forecast in 2020

Increasing total urban population in Malaysia

Source: Research Reports, Euro Monitor

Enhance the value of existing land banks and townships

In line with the division’s initiatives to promote transit-oriented developments & transit-adjacent developments

Provides accessible & convenient accommodation at reasonable prices

Revitalise and renew suburban townships

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Industry OutlookRecent developments to support the growth of port businesses in Shandong

E&U CHINA

Weifang

Dongying

Heze

Liaocheng

Dezhou

JinanZibo

Laiwu

Taian

Zaozhuang

Linyi

Binzhou

Qingdao

Yantai

Weihai

Rizhao

Jining

• According to the Port Climate Index, BohaiRim recorded steady growth of 3% (as atApr’15)

• China’s 13th Five Year Plan will focus ongrowing domestic demand, upgradingindustrial infrastructure and reforming thecountry’s energy pricing structure

Moderate growth• State Council released “China Logistics

Development Plan (2014-2020)” in Oct’14 tofurther develop China’s logistics

• High-speed rail connecting Qingdao and Jinanexpected to be completed by 2018

Logistics development

• Higher demand due to current development to build liquid storage terminal

High potential for liquid bulk

• Highest YoY performance recorded for container handling services

• Due to lower domestic port tariff announced by the Government

Stronger container handling services

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Who We Are





33

Strategy BlueprintV I S I O N

To be a leading multinational corporation delivering sustainable value to all stakeholders

#2 Strive for leadership position

• Secure and strengthen leadership positions

• Leverage on strengths and competitive advantage

#1

#2

#3

#4

STRATEGIC THRUSTS

#1 Realise full potential of the core businesses

• Achieving operational excellence and capitalize on synergies

• Strengthen relationships with strategic business partners

#4 Institute performance and value-driven culture

• Subscribe to good corporate governance and high ethical values

• Strengthen performance and rewards practice

• Leverage on talent and capabilities

#3 Pursue strategic portfolio growth

• Expand into related businesses and enter new growth markets

• Streamline portfolio to optimize use of capital

34

Strategy Blueprint

RSPO – Roundtable on Sustainable Palm Oil* Two more mills undergoing Executive Board review

V I S I O N

To be a leading Integrated Global Plantation Company

PLANTATION

To be the Best-in-Class global producer of CSPO

Pursue land bank expansion

Continuous best agronomic practices & productivity, and efficiency improvements

97%RSPO Certification

(57 out of 59 mills)*

KEY FY2014 ACHIEVEMENT

1

2

3

35

Strategy Blueprint

* Australasian mining percentage of industry net sales (PINS)

To be a world-class Caterpillar dealership and Allied Solutions in the Asia Pacific region

Enhance CAT and Allied products

Implementation of Business Transformation Project to drive overall process efficiency

64%*

Leader in mining equipment sales in

Australia and China


V I S I O N To be a High Performance Distributor of Caterpillar Products and Allied Solutions that Deliver Sustainable Shareholder Value through Enterprise and InitiativeINDUSTRIAL

1

2

3

36

Strategy Blueprint

Enhance value creation along the value chain 3

New distributorships/ dealerships in new

geographical markets


V I S I O N

To be a Leading Automotive Player in the Asia Pacific region

MOTORS

1

2

3

Expansion into new markets

Investments in key dealership sites

37

Strategy Blueprint

* For a total of 33 residential and commercial projects that were launched with 3,049 units soldNote: Sime Darby Property currently holds 22% equity stake in E&O and 40% in Battersea Power Station Holding Company

To be the leader in distinctive themed township development

Pursue strategic partnerships

Strengthen performance and delivery for more efficient strategy execution

75%Average take-up rate* within the

first three months of launching

Innovation-led product development

V I S I O N

To be a Leader in Building Sustainable Communities

PROPERTY

1

2

3

4

£1.64bnTotal locked-in sales

for three Battersea Power Station

phases

KEY FY2014 ACHIEVEMENTS

RM12bnEstimated GDV from E&O’s Seri Tanjung Pinang 2 project

38

Strategy Blueprint

* FY11 – FY14

To be the leading player in the port & logistic operations and integrated water business in Shandong province, China

Strengthen market share by expanding in tandem with demand

Expansion and diversification of WeifangPort’s capacity and capability to handle larger vessels and new cargo types

21% 4-year* revenue CAGR

of port operations in the Shandong

province recorded


V I S I O N To be a Leading Player in Port Operations, Integrated in Water Business & Logistic Park Services in the Shandong ProvinceE&U CHINA

1

2

3

39

APPENDICES1. Group & Divisional 9M FY2015/16 Results

2. Plantation

3. Industrial

4. Motors

5. Property

6. Energy & Utilities

7. Factsheet on NBPOL

40

9MFY15

RM mn 9MFY15 vs 9MFY14

Revenue

Profit Before Interest & Tax

Finance Income & Expense (Net)

Profit Before Tax

Taxation

Non-Controlling Interests

Net Profit Attributable to Shareholders

Basic EPS (sen)

Profit After Tax

Profit from Discontinued Operations*

+/-+/-

3QFY15 vs 3QFY14

3QFY15 3QFY149MFY14

30,864.2

2,082.0

(219.2)

1,862.8

(443.0)

(95.7)

1,324.1

21.7

1,419.8

-

31,394.4

2,787.7

(203.7)

2,584.0

(430.4)

(98.0)

2,159.8

35.8

2,153.6

104.2

-2%

-25%

-40%

-28%

-34%

10,101.9

1,031.5

(71.0)

960.5

(109.1)

(29.5)

852.5

14.1

851.4

30.6

9,997.8

679.6

(84.4)

595.2

(166.8)

(42.4)

386.0

6.2

428.4

-

-1%

-34%

-56%

-38%

-50%

-39% -55%

• The discontinued operations in the previous year was in relation to the disposal of the power generation business under the Energy & Utilities Division.

-7%

-3%

-19%

-53%

Appendix 1a: Group Financial Highlights9MFY2015 and 3QFY2015

41* Excludes corporate expenses and discontinued operations

Division

Segment Results (RM mn)

Year-on-Year

9MFY15 9MFY14 +/-

Plantation 658.7 1,216.9 -46%

Industrial 395.4 809.3 -51%

Motors 331.2 402.9 -18%

Property 473.0 243.2 +95%

Energy & Utilities

88.5 13.7 >+100%

Others (48.5) 49.4 <-100%

Total* 1,898.3 2,735.4 -31%

YoY Results: 9M FY2015 Overview

Plantation Division

• Average CPO price realised declined by -11% YoY; RM2,171/MT in 9MFY15 vs. RM2,439/MT in 9MFY14

• FFB production in M’sia & Indonesia declined by -8% YoY

• Declined profit from midstream & downstream businesses due to lower off-take of biodiesel and lower sales volume of differentiated products

Industrial Division

• Lower equipment deliveries and product support sales as a result of the continuing weak mining sector

Motors Division

• Profit declined from Malaysia due to GST implementation, while China/Hong Kong & Thailand continued to face stiff competition

Property Division• Higher contributions from various property

developments• Gain on disposals

Energy & Utilities Division

• Higher throughput & average tariff rates in all ports in Jining and Weifang as well as a gain on disposal of wavebreaker to a joint venture

Others• Share of losses from Tesco Stores (M’sia) • Lower contribution from insurance brokerage

business

Appendix 1b: Divisional Financial Highlights Nine months ended 31 March 2015

42

Term Loans

46%

Islamic Financing

3%

Islamic Medium

Term Loans

10%

Sukuk

16%

Revolving Credits &

Others

25%

Long-term Borrowings

70%

Short-term Borrowings

30%

Types of borrowingsBorrowings in RM equivalent

by currenciesby currencies

USD

46%

RM

39%

AUD

7%

RMB

5%

Others(Baht, TWD, Franc,

Dong & Kina)

3%

Appendix 1c: Group Total BorrowingsAs at 31 March 2015

Total

Borrowings

RM17.8bn

Total

Borrowings

RM17.8bn

43

As at 31 Mar 2015 Malaysia Indonesia Liberia PNG* Group

Total Landbank(ha)

349,212 294,862 220,000 135,203 999,277

Total Oil Palm Planted Area (ha)

308,345 204,385 10,259 81,551 604,106

Total Rubber Planted Area (ha)

9,539 - 107 - 8,713

KalimantanPlanted : 130,593 haLandbank : 185,759 ha

SarawakPlanted : 39,003 haLandbank : 47,296 ha

SulawesiPlanted : 3,984 haLandbank : 8,220 ha

SabahPlanted : 46,750 haLandbank : 53,820 ha

Peninsular MalaysiaPlanted : 232,414 haLandbank : 248,096 ha

SumateraPlanted : 69,808 haLandbank : 100,883 ha

LiberiaPlanted : 10,366 haLandbank : 220,000 ha

43

Papua New Guinea(PNG)*Planted (OP): 81,551 haLandbank : 135,203 ha

*As at 31 Dec 2014

Appendix 2a : Plantation DivisionUpstream Geographical Coverage

44

Appendix 2b : Plantation DivisionOil Palm Age Profile

0

50,000

100,000

150,000

200,000

250,000

300,000

< 3 Years

(Immature)

4 - 8 Years 9 - 18 Years 19 - 25 Years > 25 Years

ha

Malaysia Indonesia Liberia

Age profile of Sime Darby Plantation’s oil palm estates¹

0

5,000

10,000

15,000

20,000

25,000

0-3 years 3-7 years 8-12 years 13-17 years 18-22 years >23 years

ha

Age profile of NBPOL’s oil palm estates²

¹As at 31 March 2015 ²As at 31 December 2014

Average age:

14.5 years

Average age:

10.8 years

15% 13%

48%

22%

1%

11%

23%

28%

10%6%

22%

45

Appendix 2c : Plantation DivisionPlantation Operational Statistics as at 9MFY2014/15

MALAYSIA INDONESIA PNG* TOTAL

9MFY15 9MFY14 9MFY15 9MFY14 Mar’15 9MFY15 9MFY14

FFB Production (mn MT) 4.26 4.63 2.33 2.51 0.15 6.74 7.14

FFB yield per mature ha (MT/ha)

15.96 16.91 12.74 13.20 2.05 14.72 15.39

CPO Production (mn MT) 0.95 1.06 0.64 0.67 0.04 1.63 1.73

PK Production (mn MT) 0.23 0.26 0.13 0.14 0.01 0.38 0.40

CPO Extraction Rate 21.32% 21.53% 22.57% 22.41% 21.10% 21.79% 21.86%

PK Extraction Rate 5.16% 5.23% 4.76% 4.61% 5.47% 5.01% 4.99%

Average CPO selling price (RM)

2,206 2,482 2,108 2,374 2,384 2,171 2,439

Average PK selling price (RM)

1,486 1,596 1,145 1,205 N/A 1,377 1,464

46

• Primary Markets : Construction & power systems

• Presence in Hong Kong, Macau and 7 provinces in the Southeastern part

of China, plus Xinjiang

Provincial HQ

Branch / CAT Rental Store (CRS)

Guangxi

Hainan

Hunan

Jiangxi

Xinjiang

Fujian

Hong Kong & Macau

DealershipTerritories

Guangdong

Xinjiang coal reserves are

~40%of China’s total coal deposits

Appendix 3 : Industrial DivisionInvestment in China

47

Appendix 4 : Motors DivisionDistributors and dealers of luxury marques

Malaysia Singapore Thailand Macau Australia New Zealand

Distributor & Dealer

Hong Kong

Assembly(Inokom)

Rental


DealerDistributor & Dealer


Distributor

Rental


Dealer

Rental

Dealer

China

Dealer

Distributor

Dealer

Vietnam


Taiwan

Distributor, Dealer & Assembly

48

Guthrie Corridor

a. Bukit Jelutong (2,200 acres : 70% completed)

b. Denai Alam (1,000 acres: 70% completed)

Subang Jaya – SJCC, USJ Heights, Putra Heights

(6,000 acres: 90% completed)

Ara Damansara (700 acres: 95% completed)

Bandar Bukit Raja 1 (1,600 acres : 55% completed)

Melawati (905 acres: 80% completed)

Nilai Impian/Utama (1,263 acres: 50% completed)

KLGCC (40 acres)

Bandar Bukit Raja 2 & 3

(2,767 acres)

Nilai Impian 2

(Sg Sekah Estate)

(546 acres)

Vision Valley M’sia

East (3,500 acres)

a. Sports Cluster

b. Education Cluster

Snapshot of Existing Townships(~3,100 acres)

Snapshot of Future Townships (9,642 acres)

Appendix 5a : Property Division Snapshot of key townships

3

4

5

1

2

6

7

8 Bandar Ainsdale

(560 acres)

Affordable homes

Guthrie Corridor

(2,234 acres)

a. Elmina East

b. Elmina West

Subang Jaya –

SJ 7

(35 acres)

9

10

11

13

12

1

2

4

5

3

1

2

13

3

4

8

5

6

7

9

11

10

12

Kuala Lumpur

Putrajaya

Cyberjaya

KLIA

Guthrie Corridor

Subang Jaya

Ara Damansara

Bdr Bukit Raja

Greater Kuala Lumpur

Current Townships

Future Townships

SELANGOR

NEGERI SEMBILAN

Labu

Sepang

Sime Darby Property is also collaborating with its strategic partners on

developments in Penang, Johor and overseas

49

Appendix 5b : Property DivisionSime Darby Property’s Biggest International Property Development To Date

KEY HIGHLIGHTS� Established in July 2012

� Joint venture - 40:40:20 (Sime Darby Property: SP Setia : EPF)

� Total site regeneration of Battersea power station into a mixed development

� Project completion - 10-15 years

� Site area - 39.1 acres

� Estimated GDV - ~£8b

� Strong capital growth is expected as it will be part of the strategic Vauxhall Nine Elms Battersea Opportunity Area , the largest urban redevelopment area in central London

All three phases launched have garnered total locked-in sales of £1.64 billion as at 10th February 2015

• The sustainable mixed development comprising residential and commercial units at Battersea Power Station was well received since its inaugural launch in Sep’14

• Phase 1: The take-up rate of 99% with 862 units sold, locked in sales of £771.9mn• The remaining 5 unsold units are penthouses

• Phase 2: The take-up rate is at 91% with 227 units reserved which represented a sales of £552.4mn

• Phase 3: The take-up rate is currently at 51% with 277 units sold, which equivalent to a total sales of £312.5mn

50

Weifang

Dongying

Heze

Liaocheng

Dezhou

JinanZibo

Laiwu

Taian

Zaozhuang

Linyi

Binzhou

Qingdao

Yantai

Weihai

Rizhao

Jining

WEIFANG WATER TREATMENT

THROUGHPUT & CAPACITYShandong

Province, China

CHINA

Beijing

Shanghai

Shandong

FY2014

Current Throughput

32 million MT

Current Capacity

35 million MT

FY2017

Target Throughput

52 million MT

Target Capacity

73 million MT

FY2017

Target Throughput

50 million MT

Target Capacity

100 million MT

WEIFANG PORT THROUGHPUT

& CAPACITY

FY2014

Current Throughput

18 million MT

Current Capacity

26 million MT

JINING PORTS & THROUGHPUT

CAPACITY

FY2014

Current Throughput

13 million MT

Current Capacity

16 million MT

FY2017

Target Throughput

14 million MT

Target Capacity

21 million MT

Appendix 6a : Energy & Utilities DivisionFuture Growth Plans

51

Appendix 6b : Energy & Utilities DivisionAdditional investment of RM1.4 billion to expand Weifang Port’s operations in China

Berths Sizes Berth Type Status

3 x 30,000 MT Container Berths Pending regulatory approvals and development works

(target to be operational by FY2016/17)

6 x 30,000 MT General Berths

2 x 50,000 MT Liquid Berths

• Increase in throughput from the current 18mn MT to >50mn MT (by FY2017)• Increase in capacity from the current 26mn MT to 100mn MT (by FY2017)

6 7 1 8

43

25

176 8

43

2

2 x 50,000 MT liquid cargo berths

6 x 30,000 MT general cargo berths



3 x 30,000 MT crude oil, petroleum, liquid chemicals berths

4 x 30,000 MT dry bulk, salt berths

2 x 5,000 MT dry bulk berths

3x 10,000 MT dry bulk berths

Existing berths

Upcoming berths

Investment of RM 1.4 billion in the next three years

52

Appendix 7a : Value Creation from NBPOL

1 Rare opportunity to acquire a quality brownfield asset

2 Scarcity of land bank

3 High cost and high risk of greenfield development

For every increase of

USD100/MT(RM361/MT**) in CPO price...

…NBPOL is expected to generate an EBITDA

improvement of

USD58mn(RM209mn)

At an average price of

USD996.5/MT*(RM3,592.9/MT**)…

…NBPOL is able to generate an EBITDA of

USD191.5mn*(RM690.5mn**)

For every increase of

10%in NBPOL’sFFB yield…

…NBPOL’s EBITDA is expected

to increase by

USD49mn(RM177mn)

*Based on historical average of 2010-2013** USD1.00 = RM3.61OER refers to Oil Extraction Rate and FFB refers to Fresh Fruit Bunch

VALUE CREATION

10.8 yearsYoung age profile

23.5 MT/haFFB Yield (5-year average)

22.5 %OER (5-year average)

53

Appendix 7b : Strategic Rationale for Takeover NBPOL

In line with SDP’s Strategy to Expand its Land bank

Opportunity to Leverage on NBPOL’s Strong Operational Best Practices

864,141 ha 134,611 ha

~ 1 million haIncrease in land bank size

•Well-managed estates and mills that meet global sustainability standards

• Good working relationship with the local government and the local communities

Location of NBPOL’s Plantation Assets

Thank You

Documents

Citi ASEAN Investor Conference 8Annual General Meetingdemoweb11.simedarby.com/simedarby_d06/clients/simedarby_group... · Citi ASEAN Investor Conference 5 June 2015 Singapore . 2