UMW Holdings Berhad
CORPORATE PRESENTATION
March, 2016 UMW MILESTONES
1917 1960s 1970 1980s 1990s 2000s 2010s
- UMW Oil & Gas - Oil & Gas Corporation Division Berhad listed - Awarded Toyota established as on Bursa vehicle franchise UMW‟s 4th core Malaysia in - United Motor in ‟82 business in „02; „13 Works (Malaysia) - Permodalan - Largest - UMW is the official - Awarded Komatsu Holdings Berhad Nasional Berhad shareholder in Lexus distributor heavy equipment listed on stock became major the 2nd national in ‟06 distributorship in exchange shareholder in car project, - Rebranding of ‟65 ‟87 Perodua, UMW in „08 - Secured the with Daihatsu Toyota Forklift Motor Co. Ltd. as franchise in ‟67 the technology - Chia Yee Soh provider in ‟93 founded a small family business in Singapore
UMW Holdings Berhad 2 ENHANCING CAPABILITIES Laying Building Blocks for Excellence
Tier-1 supplier to Rolls-Royce 33 years partner with Toyota
22 years partner with Daihatsu
FAN CASE Founded in 1917 MANUFACTURER
AUTOMOTIVE ASSEMBLY
BICYCLE REPAIR SHOP
UMW Holdings Berhad 3 UMW AT A GLANCE
Key Business Facts Shareholding Structure (As of 31/03/2016)
Headquarters: Shah Alam, Malaysia
Number of Employees (February 2016): 12,481 Permodalan Nasional Berhad (PNB)/ PNB Managed Unit Trust Funds, 56.13% Sales (2015): US$ 3.71 billion
Foreign PBT (2015): US$ 0.684 million Shareholders, 12.72%
Market Capitalisation (31/03/2016): US$ 2.07 billion
Total Number of Shares Outstanding: 1,168,293,932
Component of: FTSE Bursa Malaysia KLCI (FBMKLCI)
Bursa Malaysia Listing Sector: Main Market, Consumer Products
Corporate Credit Rating by RAM Rating AAA Services Berhad (RAM): Other Local Employees Provident Shareholders, 13.68% Fund Board, 17.47%
* PNB and EPF shareholdings are based on direct interest and deemed interest Rate as of 31/03/2016 : 1 USD = MYR 3.883
UMW Holdings Berhad 4 BUSINESS STRUCTURE
Automotive Equipment Oil & Gas Manufacturing (Listed Company) & Engineering
UMW TOYOTA HEAVY EQUIPMENT OFFSHORE DRILLING AEROSPACE MOTOR • Komatsu OPERATIONS COMPONENT • Lexus • Bomag • Semi-Submersible Rig • Fan case • Toyota • Rosenbauer • Jack-Up Rigs • LS • Workover Rigs LUBRICANTS & PERUSAHAAN FLUIDS OTOMOBIL INDUSTRIAL OILFIELD • Pennzoil KEDUA EQUIPMENT SERVICES • Repsol • Perodua • Toyota • Pipe Inspection, Repair • Grantt • Raymond & Threading • GEP Fluids & Coolants • Aichi • Tokai SHOCK • Tennant Others – O&G Related ABSORBERS/HYDRAULI • GS Yuasa Assets C POWER STEERING • BT PUMPS & SYSTEMS • Trelleborg MANUFACTURE OF • KYB PIPES MARINE & POWER • Seamless OCTG AUTO COMPONENTS EQUIPMENT • SSAW Line Pipes • Filtration Products • CompAir • LSAW Line Pipes • Plastic Injection • Honda • Metal Stamping • Mitsubishi ONSHORE RIGS • DENSO Spark Plugs & • Cameron Wiper Blades • Desmi FABRICATION OF OIL & • GEP Filters & Brake GAS AND OTHER Pads STRUCTURES
SUPPLY OF OILFIELD PRODUCTS DOMESTIC & INTERNATIONAL PRESENCE Extensive Network – 13 countries
Malaysia Branches Dealerships Automotive Equipment UMW Toyota Motor 39 66 Manufacturing & Engineering Sdn. Bhd. Turkmenistan Myanmar Oil & Gas Topmark 6 - (Division of UMW Toyota)
Perusahaan Otomobil Kedua Sdn. Bhd. 40 141 (Associate)
UMW Industries (1985) 16 - Sdn. Bhd. China Taiwan UMW Industrial Power 8 - Sdn. Bhd. Vietnam
UMW (East Malaysia) Malaysia Sdn. Bhd. (Sabah & 9 - Sarawak) Papua New Guinea UMW Equipment 5 - Singapore Sdn. Bhd. Australia Toyota Capital Malaysia 5 - Sdn. Bhd. (Associate) Indonesia
Total 128 207 Oman India Thailand
UMW Holdings Berhad 6 AUTOMOTIVE Operations UMW AUTOMOTIVE DIVISION
Daihatsu Motor Co., Ltd 20%
MBM Resources Bhd 20%
PNB Equity Resource 10% Corporation Sdn Bhd
Toyota Motor Corporation 39% Mitsui & Co., Ltd 4.2%
Daihatsu (Malaysia) Sdn Bhd 5% Toyota Tsusho 10% Corporation Mitsui & Co., ( Asia Pacific) Pte 2.8% Ltd
51% UMW Toyota Motor 38% Perusahaan Otomobil Kedua Sdn. Bhd. Sdn. Bhd.
UMW Holdings Berhad 8 UMW AUTOMOTIVE DIVISION
Assembly Services Automotive Industries Perodua Sales Perodua Manufacturing Sdn. Bhd. Sdn. Bhd. Sdn. Bhd. Sdn. Bhd.
Assembler of vehicles Manufacturer and supplier of Marketing and distribution of Manufacturer and assembler of exhaust systems motor vehicles, related spare motor vehicles parts and other related activities
Toyota Boshoku UMW Toyotsu Motors Ingress Technologies Perodua Engine UMW Sdn. Bhd. Sdn. Bhd. Sdn. Bhd. Manufacturing Sdn. Bhd.
Manufacturer of car seats Sales and service of Toyota and Manufacture complete door Manufacturer and dealer in Lexus vehicles and parts assemblies and press parts component parts including engines, couplings and transmission components
UMW Holdings Berhad 9 TOTAL INDUSTRY VOLUME (TIV)
TIV % Change Over Previous Year RHS
Total Industry Volume – Unit Sales LHS
1,200,000 40% 20.2% 13.3% 12.5% 12.7% 20% 1,000,000 4.6% 4.5% -0.7% -2.0% -0.8% 1.6% 0.03% -6.7% -11.1% 0% 800,000 655,793 666,465 666,674 627,753 605,156 600,123 -20% 600,000 552,316 548,115 536,905 490,768 487,605 487,176 -40% 405,745 400,000 -60% 200,000 -80% 0 -100% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
• The original target for 2015 was 680,000 units. It was later revised to 670,000 units.
• Target for 2016 is 650,000 units (-2.5% growth).
• Lower sales in 2011 was due to the supply-chain disruption caused by the earthquake and tsunami in Japan and the floods in Thailand.
UMW Holdings Berhad 10 LEXUS & TOYOTA
UMW Toyota Motor Market Share Of TIV RHS UMW Toyota Motor Unit Sales LHS 200,000 18.6% 20% 17.0% 16.5% 16.7% 16.9% 15.6% 18% 15.3% 15.2% 14.8% 14.4% 16% 150,000 14.1% 14% 12% 10.6% 101,839 106,622 103,636 9.9% 95,861 100,000 91,003 91,990 88,662 92,521 10% 81,808 82,188 82,089 8% 51,700 6% 50,000 40,239 4% 2% 0 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
• Vios was our top selling model in 2015 with 36% of total Toyota sales. Hilux was second with 30%. • The new Camry and Camry Hybrid was launched on 2 April 2015. • Lexus achieved a new record in 2015 with 2,101 units sold. • Target for 2016 is 87,000 units (Toyota – 85,000 units & Lexus – 2,000 units)
UMW Holdings Berhad 11 PERODUA
Perodua Market Share Of TIV RHS
Perodua Unit Sales LHS
350,000 40% 33.3% 300,000 31.7% 32.0% 30.6% 30.5% 31.1% 31.2% 30.0% 30.1%30.1% 29.3% 30% 250,000 25.3% 25.0% 213,307 188,641 189,137196,071195,579 200,000 179,989 167,393166,736 155,419162,152 20% 139,680 150,000 124,008121,804 100,000 10% 50,000
0 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 • Perodua maintained the No. 1 position in overall market share since 2006 • Currently exporting to six countries, namely, Indonesia, Singapore, Mauritius, Fiji and Sri Lanka. • Malaysia‟s first energy-efficient vehicle, Perodua Axia, was launched on 15 September 2014. It was Perodua‟s top-selling model in 2015. • Target for 2016 is 216,000 units.
UMW Holdings Berhad 12 UMW GROUP’S MARKET SHARE Units & Market Share (%) In 2015 Brand 2015 2014 Market Units Market Units Share % Share %
Proton 15.3 102,175 17.4 115,783 Honda 14.2 94,902 11.6 77,495 Nissan 7.1 47,235 7.0 46,352 Hyundai, Kia 1.6 10,960 2.5 16,886 Volkswagen 1.0 6,405 1.3 8,916 Others 14.4 95,829 15.3 101,818 Total 53.6 357,506 55.1 367,250 2014 Perodua 195,579 213,307 29.3% 32.0%
2014 UMW Toyota 103,636 95,861 15.6% 14.4% Others 2014 357,506 367,250 53.6% 55.1%
• UMW companies sold 309,168 units in 2015 with a market share of 46%.
UMW Holdings Berhad 13 AUTOMOTIVE DIVISION Models and Price Range
Toyota Avanza Toyota Alphard Lexus LS 600hL
9 models 200 300 400 500 600 700 800 900 1,000 1,100 RM242k-1.09m
11 models RM 60 80 100 120 140 160 180 RM65k-393k „000
3 models 20 40 60 80 RM24.6k-65k
Top Selling Models
Perodua Perodua Axia Alza Toyota - Vios
Perodua - Axia
UMW Holdings Berhad 14 EQUIPMENT Operations EQUIPMENT DIVISION
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
UMW Holdings Berhad 16 HEAVY EQUIPMENT
Myanmar Malaysia Singapore Since 1965 Papua New Guinea
• Komatsu franchise in Malaysia, Singapore, Myanmar and Papua New Guinea • Market share range from 20% to 43%. • Has strong presence in Myanmar, supplying equipment to the jade mining and resource mining sectors.
Since 1979 Since 1996
UMW Holdings Berhad 17 INDUSTRIAL EQUIPMENT TOYOTA FORKLIFT FRANCHISE
China Shanghai, Zhejiang Vietnam Malaysia Brunei Singapore
• Strong market leadership position • 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.
UMW Holdings Berhad 18 MARINE AND POWER EQUIPMENT
CompAir Honda Gas Compressor Power Products
Cameron Centrifugal Compressor
Mitsubishi & GE Marine Engines
Cameron Reciprocating Compressor
UMW Holdings Berhad 19 OIL & GAS Operations
20 UMW OIL & GAS CORPORATION BERHAD Listed On Bursa Malaysia (55.72% subsidiary)
A Malaysian-based multinational oil & gas (“O&G”) player focused on providing drilling and oilfield services for the upstream sector of the O&G industry.
. 1 Semi-submersible – NAGA 1 Offshore Rigs 8 . 7 Jack-ups – UMW NAGA 2, UMW NAGA 3, UMW NAGA 4, UMW NAGA 5, UMW NAGA 6, UMW NAGA 7, UMW NAGA 8 Drilling Services
Hydraulic 5 Workover . UMW GAIT I, UMW GAIT II, UMW GAIT III, UMW GAIT V, Units UMW GAIT VI
. 1 West Plant & 1 East Plant in Labuan, Malaysia . 1 Sattahip & 1 Songkhla, Thailand Oilfield Services Plants 6 . 1 Tianjin, China . 1 Turkmenbash, Turkmenistan
Oilfield Drilling services services 4% Segmental revenue breakdown 96% for FY2015
UMW Holdings Berhad 21 DRILLING SERVICES – SEMI-SUBMERSIBLE DRILLING RIG
Asset • UMW co-owns a semi-submersible drilling rig, NAGA 1, on 50:50 venture with Japan Drilling Company; since 2005. • Drilling depth of 30,000 feet • Operating water depth of 985 feet
Customer • PETRONAS Carigali Sdn. Bhd. since 2005.
Status • The current contract duration is for five (5) years ending in August 2016. • PETRONAS Carigali has awarded a contract extension for a further period of two (2) years commencing August 2016.
NAGA 1
UMW Holdings Berhad 22 DRILLING SERVICES – JACK-UP DRILLING RIGS - Malaysia’s only owner-operator of premium jack-up drilling rigs.
JACK-UP CUSTOMER CONTRACT DURATION CONTRACT DRILLING RIG AWARDED
UMW NAGA 2 Bidding for contracts
UMW NAGA 3 Bidding for contracts
UMW NAGA 4 PETRONAS Carigali Sdn. Bhd. 3 years April 2013
2-year option for renewal.
UMW NAGA 5 Bidding for contracts
UMW NAGA 6 Bidding for contracts
UMW NAGA 7 PETRONAS Carigali Sdn. Bhd. 7 firm wells; 1+1 option well 15 October 2015 for renewal
UMW NAGA 8 SapuraKencana Petroleum Bhd. 18 firm wells; 3 option wells 28 September 2015 for renewal
UMW Holdings Berhad 23 DRILLING SERVICES – HYDRAULIC WORKOVER UNIT
UMW-OG offers a range of workover operations include maintenance and services for existing wells in connection with Restoring and reworking a well to increase production and prolonging a well‟s productive life Stimulating a well to achieve planned and enhanced productivity Repairing a well‟s mechanical problems to restore and sustain production Plugging and abandonment of a depleted well
Our HWUs are modular, lightweight, mobile and configurable
UMW GAIT I UMW GAIT II
Maximum pulling 340,000 lbs Maximum pulling 460,000 lbs capacity capacity Maximum snubbing 150,000 lbs Maximum snubbing 225,000 lbs capacity capacity
UMW GAIT III UMW GAIT V
Maximum pulling 460,000 lbs Maximum pulling 460,000 lbs capacity capacity Maximum snubbing 225,000 lbs Maximum snubbing 225,000 lbs capacity capacity
UMW GAIT VI
Maximum pulling 460,000 lbs capacity
Maximum snubbing 225,000 lbs capacity
Owner and operator of HWUs and a PETRONAS-licensed provider of HWU services
UMW Holdings Berhad 24 OILFIELD SERVICES - OCTG THREADING, INSPECTION & REPAIR SERVICES
UMW-OG‟s OCTG threading, inspection and repair service facilities in Malaysia, Thailand, China and Turkmenistan focus on premium connections.
UMW Oilpipe Services Sdn Bhd UOT (Thailand) Limited
2 plants located in Labuan offering premium Located in Songkhla and Sattahip, OCTG threading, inspection and repair Thailand services Focus on repair of damaged threaded Owner of quality oilfield services assets, pipes and the threading of OCTG and including a threading facility in Malaysia with accessories 22 CNC lathe machines Was the first threading plant in Malaysia to be approved in API Q1 and API 5CT specifications
UMW Oilfield Services (Tianjin) Co Ltd UMW Oilpipe Services (Turkmenistan) Ltd
Located in Tianjian, China Located in Turkmenbashy, Turkmenistan „One-stop shop‟ multi premium connection Provides machine shop services for repair threading base, inspection and related and threading of casing, tubing and oilfield workshop services accessories, tubular inspection and Received appreciation letter from hardbanding of drill pipes and collars Schlumberger China and awarded one of the Mainly supports PETRONAS‟ subsidiary in „best supplier‟ under Schlumberger‟s global Turkmenistan‟s offshore fields in the supplier system in 2012 Caspian Sea.
UMW-OG‟s operations are pan-Asian, with high quality assets characterised by high precision and accuracy capabilities
UMW Holdings Berhad 25 MANUFACTURING & ENGINEERING Operations KEY PRODUCTS
AEROSPACE LUBRICANTS AUTO COMPONENTS COMPONENT
Fan Shock Lubricants & Case Absorbers Fluids & Power Steering
Lubricants & Fluids Automotive (China) Components
Fluids & Chemicals
UMW Holdings Berhad 27 MANUFACTURE OF AERO ENGINE FAN CASES UMW M&E SDN BHD
Component Part Manufacturing for RR‟s Most Advanced Passenger Aircraft Engines
UMW as the 1st Malaysian Tier 1 Supplier to Rolls Royce • The project is for the manufacture of fan cases for the Trent 1000 aero engines for 25 years (Trent 7000 engines-later) for Rolls-Royce‟s (“RR”) supply chain.
• Both Trent engines are the most advanced in aero engine technology, with increased fuel efficiency and noise reduction. Be Part of Asian Supply Chain Development Single Source Final Assembly of the Trent 1000 • UMW will be the only supplier („single-source and Trent 7000 engines in Singapore supplier‟) for fan cases for both the engines.
• The manufacturing plant will be located in Serendah, Selangor.
• The first delivery is targeted for October 2017.
UMW Holdings Berhad 28 LUBETECH SDN BHD (MALAYSIA) UMW ADVANTECH SDN BHD UMW LUBRICANT INTERNATIONAL SDN BHD (MALAYSIA) Manufacturing of automotive components in Selangor LUBRITECH LIMITED (CHINA)
Manufacturing and distribution in Selangor
In-house brand Spain's largest integrated American oil oil & gas company company
* Full capability at TBA KYB-UMW MALAYSIA SDN BHD KYB-UMW STEERING MALAYSIA SDN BHD
Manufacturing and distribution in Guangdong Manufacturing of Automotive shock absorbers in Selangor
Shock Absorbers for Shock Absorbers for 2-wheelers 4-wheelers
* Full capability at 50 mil/liters p.a. Power Steering Pump Power Steering System
UMW Holdings Berhad 29 FINANCIAL HIGHLIGHTS 10-YEAR GROUP FINANCIAL HIGHLIGHTS
AUTOMOTIVE EQUIPMENT M & E OIL & GAS
Revenue Profit Before Taxation (RM million) (RM million)
2,020
15,817 14,932 14,442 1,621 13,952 13,536 12,770 12,820 1,436 1,365 1,277 1,313 10,721 9,950 9,976
856 847 754
270
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
31 10-YEAR GROUP FINANCIAL HIGHLIGHTS
AUTOMOTIVE EQUIPMENT M & E OIL & GAS
Total Assets Shareholders‟ Funds (RM million) (RM million)
18,225 6,581 6,584 16,520 6,290
14,595
4,848
11,491 4,249 10,541 4,027 10,024 3,774 3,522 8,826 3,130 7,828 2,560 6,491 5,103
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
UMW Holdings Berhad 32 Key Performance Indicators – Dividend Policy ANNUAL DIVIDEND PAYOUT, 50% OF PROFIT NET OF UNREALISED GAINS
>100.0 75.8 75.2 78.7 76.1 57.7 59.0 58.8 Target 50% 48.8 50.3 50.8
Payout Ratio (%)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
50.0 44.0 37.0 41.0 30.0 30.0 31.0 19.0 20.5 20.0 20.0 Gross Dividend Per Share Of RM0.50 Each (sen) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
March 08 Share Split from RM1.00 to RM0.50 each
UMW Holdings Berhad 33 THANK YOU
Roza Shahnaz Omar S. Vikneshwaran
Director, Group Strategy Head, Investor, Media Relations & Sustainability
UMW Corporation Sdn. Bhd. Email: [email protected]
Telephone: +603 5163 5000
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.