Invest Malaysia UK 2014

INVEST MALAYSIA
UNITED KINGDOM 2014
1-2nd September 2014
London
1
Disclaimer
This 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.
2
WHO WE ARE
3
Sime Darby Today
A Diversified Multinational with 5 Core Businesses in Key Growth Areas
RM43.9bn
Revenue (FY2014)
RM4.2bn
Canada
PBIT (FY2014)
111,000
United Kingdom
The Netherlands
Germany
United States of America
Thailand
PBIT
Liberia
Contribution
of each Division (FY2014)
23
24%
Japan
China
Employees
45%
South Korea
15%
Hong Kong
Macau
Vietnam
Malaysia
Indonesia
Maldives
South Africa
Singapore
Papua New Guinea
Solomon Island
Australia
New Caledonia
New Zealand
14%
2%
Countries Worldwide
4
Sime Darby’s Shareholding Structure
PNB and EPF Continue to be Sime Darby’s Major Shareholders
RM57bn
Market Capitalisation*
RM9.47
OTHERS
35%
Shareholding
Structure
as at
31 July 2014
Share Price*
PNB
51%
15%
Foreign Shareholding
(as at 31 July 2014)
EPF
14%
5
*As at 28 August 2014
Sime Darby’s Transformation
Evolution into Malaysia’s Leading Multinational Conglomerate
Founded by
William
Sime &
Henry Darby
CAT
Dealership
in Malaysia
Subang
Jaya, 1st
Property
Township in
Selangor
1929
1910
CAT
Dealership in
Australia
Ports and
Water
Management
in China
First Oil Palm
Planting in
Liberia
1993
2009
Acquisition of
Bucyrus
Dealership
from CAT
50-50 JV
Partnership
with Ramsay
Healthcare
2011
2013
2005
1974
Our vast experience and competencies have helped us to
enhance our competitiveness and positioning globally
1972
1915
Rubber
Plantation
2001
1979
2007
2014
2011
2012
CAT
Dealership
in China
BMW
Dealership in
Singapore
Guthrie
Purchased
Minamas
Plantation in
Indonesia
Merger that
Created the
World’s
Largest Listed
Oil Palm
Plantation
Company
Disposal of
the Oil &
Gas
Business Acquisition of a
40% Stake in the
Battersea Power
Station Project
Disposal of the
Malaysian &
Thai Power
businesses
6
Sime Darby’s Transformation
Value Creation Over the Years
2014
2007
Market Cap**
Market Cap
(Pre-Merger*)
RM58 billion
RM28 billion
DISPOSALS
ACQUISITIONS
Nov 2007
The merger of Kumpulan Sime
Darby Bhd, Kumpulan Guthrie Bhd
and Golden Hope Plantations Bhd
Aug 2011
Acquisition of a 30% stake
in E&O Bhd
Dec 2011
Acquisition of the Bucyrus
dealership from Caterpillar for
RM1.1bn
July 2012
Joint acquisition (Sime
Darby:40%,SP Setia:40%,
EPF:20%) of the Battersea Power
Station site in London for £400mn
(RM1.9bn)
2004-2012
Divestments of non-core and
non-performing businesses
worth RM3.2bn
May 2011
Disposal of the Oil & Gas
business for RM689.5mn
Jan 2012
Disposal of Dunlopillo for
RM70.7mn
Mar 2013
50-50 JV between Sime
Darby’s Healthcare business
and Ramsay Healthcare
(capital gain of RM340.6mn)
Apr - Jun 2014
Disposal of the Malaysian &
Thai power businesses
* Kumpulan Sime Darby Berhad (market cap as at 16 Oct ’07)
** As at 31 July 2014
NOTABLE EVENTS
Dec 2008 - 2009
Global Financial Crisis
Jul – Sep 2010
Appointment of the new Board members &
the appointment of President & GCE
Jan 2011
Introduction of the Two-Tier Board
Structure
Aug 2011
Completion of the Group’s Portfolio Review
& Outlining of the 5-Year Strategy Blueprint
Jan 2013
Issuance of Asia’s First Internationally
Rated Multi-Currency Sukuk Programme
7
A Leading Multinational Corporation
Market Leading Positions in Industrial and Consumer-based Businesses
#1
#1
#3
#1
Listed Oil Palm Plantation
Company in terms of
Planted Area
Largest Caterpillar Dealer in
the World in terms of units
sold
Producer of Certified
Sustainable
Palm Oil
#3
#1
#1
Community Developer in
Malaysia in terms of land
bank
Company in the World to Fully
Sequence, Assemble and
Annotate the Oil Palm Genome
Caterpillar Dealer
in the Asia Pacific Region
in terms of units sold
#3
BMW dealer in the World
#1
Rolls Royce Dealer
in the World
#1
MINI Market Share across
the world (MINI in HK)
Best Developer & Villa Development,
South East Asia Region
#3
Most Efficient Port in Shandong
Province, China
8
Sime Darby’s Corporate Credit Rating
The USD1.5 billion Sukuk Issuance Programme Received Strong
International Ratings
A
(axAAA*)
A
A3
* Long-term ASEAN regional scale
9
Key Operational Highlights
Divisional Key Performance Drivers
Plantation
FFB Production
Industrial
OER
(MN MT)
FFB Yield
(%)
Aust. Mining PINS
(MT/ha)
(%)
1
10.1
9.8
10.1
9.4
1
21.4
Property
21.9
2.75
76,309
81,0 89,126
50
21.6
20.5
21.5
20.4
76
74
73
64
E&U China
Units sold
(RM’mn)
1.90
21.8
Motors
Gross Sales Value
2.10
21.8
2
92,1
12
Port Operations
Throughput (mn MT)
26.24
28.37
29.10
22.82
1.50
Decline due to the delay in peak cropping and the prolonged dry weather
Decline due to unfavourable coal prices and tough market conditions in the mining sector
PINS – Percentage of Industry Net Sales
Legend :
FY2011
FY2012
FY2013
FY2014
1
2
10
Key Divisional Highlights
Strong Earnings Visibility across the Group’s Core Businesses
FY2014 REVENUE* : RM43.9 bn
B
Y
Others
0%
E&U 2%
D
I
V
I
S
I
O
N
Motors
40%
FY2014 PBIT *: RM4.2 bn
E&U
1%
Plantation
25%
Others
1%
Motors
15%
Plantation
45%
Industrial
24%
Industrial
27%
Property
14%
Property
6%
B
Y
G
E
O
G
R
A
P
H
Y
Others
5%
SE Asia ex
Malaysia
14%
SE Asia ex
Malaysia
Australasia 10%
Malaysia
32%
Others
-1%
11%
China/HK
10%
Australasia
21%
Malaysia
49%
Indonesia
19%
China/HK
23%
Indonesia
5%
*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
11
FY2013/2014 Group Financial Highlights
Satisfactory performance amid tough market conditions
RM mn
FY2014 vs FY2013
FY2014
+/-
4QFY14
4QFY13
+/-
43,908
46,109
-5%
12,514
12,751
Profit Before Interest & Tax
4,219
4,635
-9%
1,431
1,290
+11%
Finance Income & Expense (Net)
(254)
(321)
+21%
(51)
(74)
+31%
Profit Before Tax
3,965
4,314
-8%
1,381
1,217 +14%
Taxation
(708)
(953)
+26%
(277)
(236)
Profit After Tax
3,257
3,361
-3%
1,104
263
471
159
360
Non-Controlling Interests
(168)
(131)
(70)
(30)
Net Profit Attributable to
Shareholders
3,353
3,701
1,193
1,311
19.7
21.8
Revenue
Profit from Discontinued
Operations*
Basic EPS (sen)
•
FY2013
4QFY14 vs 4QFY13
55.6
61.6
-9%
-10%
-2%
-17%
981 +13%
The discontinued operation was in relation to the disposal of the power generation business under the Energy & Utilities
Division. In the previous year, it was in respect of the Healthcare business.
-9%
-10%
12
Overview of Divisional Performance
Financial Year ended 30 June 2014
Segment Results (RM mn)
Division
Year-on-Year
FY2014
Plantation
1,874.6
FY2013
2,006.5
YoY Results: FY2014 Overview
Plantation Division
• Higher average CPO price realised by 6% YoY:
RM2,451/MT in FY14 vs RM2,317/MT in FY13
• Higher OER at 21.86% in FY14 vs. 21.79% last year
• Lower FFB production in FY14 by 7% YoY
-7% • Lower CPO sales volume by 7% YoY
+/-
Industrial Division
Industrial
Motors
Property
1,011.8
1,300.2
634.5
711.4
599.7
571.5
-22% • Lower equipment deliveries and product support sales
to the mining sector in Australia
• All other regions registered better performances
-11% Motors Division
• Higher profit contributions from China/HK & NZ
mitigated lower earnings from M’sia, S’pore &
+5% Australia
Property Division
Energy &
Utilities
20.6
Others
52.7
82.2
-75%
• Higher contributions from various property launches in
City of Elmina, Isola Project and Taman Pasir Putih
Energy & Utilities Division
38.8
+36% • Due to additional cost provisions for the previous oil
and gas projects
• Ports and water operations in China recorded better
results
Total*
4,193.9
4,710.6
-11%
Others
• Higher contributions from insurance
brokerage business and Tesco Stores
13
as well as share of profit from
Healthcare
business
* Excludes corporate expenses and discontinued operations
SIME DARBY’S KEY STRENGTHS
14
Sime Darby’s Key Strengths
Managing Risks & Returns through Diversification
PBIT Margin (FY2011 – FY2014)*
30%
25%
Property
20%
Plantation
15%
GROUP
10%
Healthcare¹
Industrial
5%
Motors
E&U²
0%
FY2011
FY2012
FY2013
FY2014
As a conglomerate, the Group is able to consistently
maintain a stable profit margin despite the volatility
in the diverse businesses that it operates in
Note:
* Profit before interest and tax excluding corporate expenses and discontinued operations
¹The Healthcare business was disposed in end-June’12
²Low PBIT margin in FY2014 as a result of the disposal of the Malaysian and Thai power businesses
15
Sime Darby’s Key Strengths
Maintaining a Healthy Balance Sheet
RM'bn
100
ASSETS
(RM’bn)
80
FY2013
FY2014
Debt/Equity
38%
Debt/Equity
36%
Debt/Equity
37%
60
40
20
LIABILITIES
(RM’bn)
FY2012
Net Assets
RM26.9bn
+4%
Net Assets
RM28.0bn
+5%
Net Assets
RM29.4bn
0
-20
-40
Net Assets
Payables, provision & other liabilities
Property,plant & equipment
Net asset held for sale
Total cash & equivalent
Receivables and other assets
Sime Darby continues to deliver sustainable
value and long term financial stability
16
Sime Darby’s Key Strengths
Self-sufficient Businesses
Cash Flow Movement as at FY2014*
RM‘bn
12
10
8
5.36
(1.68)
0.92
(0.72)
6
(2.40)
0.73
(1.57) (0.08)
(0.36)
4
2
4.80
4.60
0
Opening EBITDA Working
cash &
capital
cash
movements
equivalent
*Unaudited
Tax
paid
Proceeds
from
disposals
CAPEX
Long
term
borrowing
raised
less
repayments
Dividend Dividend
paid to
paid
minority
interests
& others
Finance
costs
paid
Sime Darby has self-sufficient businesses whereby the
internally generated funds from various businesses can
support the current operations while maintaining its
dividend payout
Closing
cash &
cash
equivalent
17
Sime Darby’s Key Strengths
High Dividend & Payout Ratio
RM’mn
2,300
65%
55%
2,200
2,100
49%
70%
60%
51%
50%
2,000
FY2014
Total Dividend Payout *
RM2.2bn
40%
Dividend Payout Ratio*
1,900
2,103
1,800
2,183
20%
65%
10%
Dividend Yield*
30%
2,043
1,700
1,803
1,600
1,500
0%
FY2011
FY2012
Dividend Payout (in RM'mn)
FY2013
FY2014
3.8%
Dividend Payout Ratio (RHS)
Sustainable long term returns to shareholders
via dividend payout ratio of around 50%
*The Board has recommended a final single tier dividend of 30 sen per share in respect of the financial year ened 30 June 2014
(Final Dividend). Together with the earlier interim dividend of 6 sen per share, the total dividend for the year is 36 sen per
share. The proposed Final Dividend is subject to the approval of the shareholders at the forthcoming AGM.
18
Sime Darby’s Key Strengths
Rigorous Focus on Capital Efficiency
CAPITAL ALLOCATION IN A CONGLOMERATE
The Group practices a disciplined approach towards capital allocation, based upon :
Strict capital
spending in FY2014
1
RM'bn
5
2
Industry
Leadership
Size, returns,
efficiency etc.
4
60%
3
2
Sustainable
Profit
contribution
4.0
2.4
1
0
Total Revised
CAPEX FY2014
Utilised CAPEX
FY2014
3
Industry
Outlook
4
Returns
Attractive industries with
Exceeding industry
good long-term outlook
specific hurdle rates
and sustainable growth
(10% - 15%)
prospects
(attractive ROIC trend)
19
Sime Darby’s Key Strengths
Enhancement in Corporate Governance
1 Flagship Subsidiary Boards
In place to effectively manage the
Group’s key businesses
3 Code of Business Conduct
Guidance on ethical standards of
behaviour expected of all Directors and
employees
4 Group Compliance Office
Prevent occurrence of
non-compliance
5 Revamp of the
Reporting Structure
Ensure effective Group oversight over
divisional activities
6 Corporate Integrity Pledge
One of the first corporates to sign
the pledge as part of its
anti-corruption measures
2 Enhanced Group Policies &
Authorities
Incorporate policies on insider dealings,
whistleblowing and new limit of authority
7
Risk Management
Ensure adequate processes
in place to manage the key
risks affecting the Group
20
Sime Darby’s Key Strengths
RSPO Principles & Key Sustainability Achievements
Sime Darby Strictly Adheres
to RSPO Principles
Fully RSPO-certified Mills
(Malaysia & Indonesia) as at 30 Jun ‘14
Commitment to Transparency
Compliance with Applicable Laws
and Regulations
2.14 mn MT
Certified Sustainable Palm Oil (CSPO)
as at 30 Jun’14
Commitment to Long – Term
Economic and Financial Viability
Use of appropriate Best Practices
by Growers and Millers
Environmental Responsibility and
Conservation of Natural
Resources
Responsible Consideration of
Employees and of Individuals
and Communities by Growers
and Millers
Responsible for New Plantings
Commitment to Continuous
Improvement in Key Areas of
Activity
97%
0.49 mn MT
Certified Sustainable Palm Kernel Oil (CSPK)
as at 30 Jun’14
2.4 mn MT
Total Sales of RSPO-certified Palm Products for FY14
330,000 MT/p.a.
Sime Darby Golden Jomalina
World’s Largest Producer of Segregated CSPO
Group Sustainability Report
Successfully published in 2012 and 2013
For more information:
http://www.simedarbyplantation.com/Sustainability.aspx
21
Sime Darby’s Key Strengths
Leader in Plantation Sustainability
Plantation Division’s
Sustainability Mandates
RSPO Certification for all
Strategic Operating Units (SOUs)
No Clearing of Primary Forests
and High Conservation Value
(HCV) Areas
Respect Native Customary Rights
and Obtain Free, Prior and
Informed Consent (FPIC) for
New Developments
Zero Burning for Oil Palm
Replanting and New
Developments
Scientist Carrying
Out Water
Sampling
Zero Burning
Replanting
Technique
High Conservation
Value Areas
No New Planting on Peatland
Reduce Upstream Carbon
Emission Intensity by 40% by
2020, from 2009 baseline levels
Integrated Pest
Management
Mangrove
Rehabilitation
Water Catchment Areas within Estates
Agro Forest Areas
Within Plantation
22
Sime Darby’s Key Strengths
Sustainability Efforts Across Other Divisions
First carbon-neutral
house in Southeast Asia
Sime Darby Idea House
Leadership in Energy & Environmental
Design(LEED) Certification
Oasis Ara Damansara
Hybrid and Electric
vehicle models
distributed by Sime
Darby Motors




BMW i3
Porsche Cayenne
Hybrid
Hino Hybrid Trucks
Mitsubishi i-MiEV
Caterpillar’s
remanufactured
parts as % of total
engine parts sold
23
Sime Darby’s Key Strengths
Strong Focus on Research and Innovation
Incorporating Research & Innovation
to Enhance Our Businesses
PLANTATION
CALIX 600:
Superior seeds
Genome project:
First field trials
ongoing
MOTORS
Customer Feedback
Management &
Business Process
Improvement
INDUSTRIAL
Oil palm cellulosic
residue as raw
material for bioethanol
PROPERTY
Building Information
Modelling
Integrated IT
systems
HEALTHCARE
iPhone
application for
patients and
Customer
Relationship
Management
24
INDUSTRY OUTLOOK
& DIVISIONAL HIGHLIGHTS
25
Industry Outlook
GDP Growth in Key Economies Remain Resilient
GDP: 1.7% in 2014E
GDP: 7.4% in 2014E
GDP: 1.0% in 2014E
GDP: 5.3% in 2014E
vs. -0.4% in 2013
Continued weaker private consumption and lower
energy demand due to slower manufacturing
growth
vs. 5.8% in 2013
Expects increased demand for local commodity
& manufacturing exports as political
uncertainty diminishes
GDP: 2.8% in 2014E
GDP: 5.1% in 2014E
vs. 1.9% in 2013
Expected higher external demand from US and
economic activities will boost energy prices
vs. 1.7% in 2013
Expected increase in house prices and
construction sector growth will boost the property
industry
vs. 7.7% in 2013
Expects higher private consumption but a
slower housing market
vs. 4.7% in 2013
Stronger GDP growth supported by domestic
demand & higher economic activity to boost the
Group’s businesses
GDP: 2.8% in 2014E
GDP: 5.1% in 2014E
GDP: 1.4% in 2014E
GDP: 1.6% in 2014E
vs. 2.4% in 2013
Ongoing decline in mining investment, low
construction industry growth and slower retail
spending as the economy stuck in low gear
vs. 1.5% in 2013
Expects slower industrial output will reduce coal
and energy demand
vs. 4.7% in 2013
Indicates robust expansion in manufacturing
sector and stronger private consumption to
provide catalysts to both Industrial & Motors
sectors
vs. 2.9% in 2013
Political uncertainty continues to impact
private consumption
Sime Darby is well positioned to capitalise
on the growth of regional economies
26
*Note: ECB: European Central Bank
Source: Bloomberg (as at July 2014)
Industry Outlook
CPO Prices Expected to Range Bound in the Short Term
RM/MT
3,500
Crude Palm Oil Price vs Soybean Oil Price
3,300
3,100
2,900
2,700
2,500
2,300
2,100
CPO price: RM1,991/MT As at 27/8/14
1,900
Crude Palm Oil
Upside potential
• Risk of El Nino phenomenon
• Stronger biodiesel demand
• Upcoming festive season
Soybean Oil
Downside potential
• Bumper US soybean supplies
• Strengthening of RM against USD
• FFB peak cropping period
27
Source: Bloomberg, Research Reports
Industry Outlook
Outlook on CPO price Remains Bullish in the Long Term
1
Among the 17 oils and fats, palm oil was the highest consumed oil in 2012,
reaching 3 billion people in 150 countries
High nutritional value
Efficient & highly productive
3
10 Major Oilseeds
Area Under Cultivation in 2012
(Total =258.9 mn hectares)
2
Provides right amounts of fat in a balanced diet
Less land, more oil
17 Major Oils & Fats :
Global Production in 2012
(Total =186.4 mn tonnes)
Versatile & unique
Balanced oil with a unique chemical composition
• Palm oil is used in a
wide variety of food
products such as
cooking oils,
shortenings &
margarine
• Also increasingly being
used as feedstock for
biofuel &
biochemical
Source: Oil World 2013
• Palm oil has the richest
known content of
natural tocotrienols
which helps to lower bad
cholesterol levels and
protects the brain
against diseases
• Also high in carotenoids,
a rich source of vitamin A
• It is also cholesterol-free
and trans fat free
4
Poverty alleviation
Palm oil sector offers great economic potential
• The industry is one of
the key economic
drivers of the
agricultural sector in
developing countries i.e.
Malaysia & Indonesia
• Provides direct
employment for
~570,000 people
Malaysia in 2012
28
FY2013/2014 Highlights (Plantation)
Sustainability Initiatives and Recent Developments
Sime Darby is fully committed towards sustainable agriculture
97%
Fully RSPO-certified Mills
(Malaysia & Indonesia) as at 30 Jun’14
2.14 mn MT
Certified Sustainable Palm Oil (CSPO)
as at 30 Jun’14
0.49 mn MT
Certified Sustainable Palm Kernel (CSPK)
as at 30 Jun’14
Sime Darby was chosen as the
preferred bidder for Kulim Berhad’s
~49% equity interest in NBPOL
In line with Sime Darby’s strategy to
expand its plantation land bank
• High yield & young plantation asset with an
average age of 10.8 years & ~135k ha
• ~80k ha oil palm areas (planted)
• ~55k ha non-oil palm areas
• Fully RSPO-certified estates
• 2 refineries (UK & PNG) & 4 kernel crushing
plants in PNG
•
•
•
As at 30 Jun’14, 2 remaining mills in
Indonesia (c.18k ha of estates) are
pending final approval for RSPO-certification
Sime Darby & 4 other large oil palm growers
signed Sustainability Palm Oil Manifesto
on 6 Jan’14 to set higher standards and
commitment to sustainable agriculture
In line with our major customers’
commitments to purchase palm oil from
certified, sustainable, traceable sources
by 2020
Acquisition of soybean crushing and
refining complex in Thailand
for TBH815mn (RM80.4mn)
In line with Sime Darby Group’s
expansion plan into the Greater Mekong
Sub-Region (GMS)
• Allows Sime Darby to expand its
downstream operations & marketing
in Thailand & GMS through Sime
Darby Morakot
29
Industry Outlook
Australia’s Mining Sector Remains Challenging Due to Tough Market Conditions
Tough and volatile market
conditions continue to dominate
the mining industry
 Falling demand from key markets such
as China & India
 Impact of weak coal prices continue to
pose significant impact on production
 Relatively strong Australian dollar
AUD/USD
AUD/USD
1.10
Newcastle Coal Price
USD/MT
150
1.05
100
1.00
50
0.95
Jul-14
Apr-14
Jan-14
Oct-13
Jul-13
Apr-13
Jan-13
Oct-12
Jul-12
Apr-12
0
Jan-12
0.90
 Lower coal prices had led miners to focus
on cost reduction
 Thus, affecting the division’s heavy
mining equipment business in Australia
Signs of improvement
Due to:
Closure of China’s 2,000
underperforming coal mines
had led to increased reliance
on coal imports
China’s ban on lower grade coal
imports acts as a positive
catalyst to prices in the long
term and benefits better
quality Australian coal exports
The Adani & GVK Hancock Coal
Projects received the Federal
Government’s approval
The Galilee Basin is becoming
a significant area for big
potential mine developments
within Queensland
Source: Mining Business Outlook Report 2014, BREE 2nd Edition, June’14 Edition Resources & Energy and Bloomberg
30
FY2013/2014 Highlights (Industrial)
Sustainable performances in Malaysia, Singapore & China
MALAYSIA
SINGAPORE
CHINA
FY14 PBIT +11% YoY
Forestry, construction and
mining activities are top 3
contributors
FY14 PBIT +59% YoY
Contributed mostly from the
construction and power
systems sectors
FY14 PBIT +82% YoY
~30% of China’s contribution
is generated from the
construction sector
 Positive long term
outlook for the
construction sector
 Spurred by governmentled infrastructure
projects & private sector
driven projects in coming
year
• The sector’s orders in
hand for government
led-infrastructure
investments are
expected to last about
5 years
 Forestry and quarry
sectors continue to
contribute positively to the
country’s GDP in 2014
 The construction
sector in Singapore
remains robust,
supported by large
infrastructure &
upgrading projects
 Local offshore marine
firms expect positive
global demand for oil
as long as global oil
prices are trending above
USD85 per barrel
• Increase the need for
exploration &
production
 In the construction
sector, continued
cooling of the Chinese
property market may
lead to moderate
excavator sales growth
 Robust outlook for the
offshore and marine
sectors as:
• Higher rig orders from
Chinese owners in near
term due to increased
demand for offshore
service vessel (OSV)
• China becomes a hub
for building
leisure ships
31
Industry Outlook
The Passenger Vehicle Market Outlook Stays Positive in the Near Term
Quarterly Regional Passenger Vehicles YoY Growth
Malaysia
China
100%
Australia
Singapore
New Zealand
Thailand (RHS)
260%
80%
60%
160%
40%
60%
20%
-40%
0%
-140%
-20%
•
•
Jun-14
Mar-14
Dec-13
Sep-13
Jun-13
Mar-13
Dec-12
Sep-12
Jun-12
-240%
Mar-12
-40%
The passenger vehicles (PV) sales growth were flat in 2QCY2014, despite being
supported by seasonal sales incentives as car dealers set to achieve mid year targets
In Malaysia, the Malaysia Automotive Association has also revised its 2014 TIV
forecast upwards to 680k units (+4% YoY) on the back of positive consumer
sentiment, aggressive sales campaign and new model launches by the auto
distributors
Source: CEIC, Bloomberg, Research reports
TIV – Total Industry Volume
32
FY2013/2014 Highlights (Motors)
Sustained Performances Attributable to Exciting Launches in 4QFY14
Robust outlook for Malaysia’s automotive sector driven by attractive new
model launches & positive consumer sentiment
+17% YoY
Sime Darby Motors’
Malaysia sales volume
+4% YoY
Ford Fiesta 1.0L Eco Boost
Launched in May 2014
in Malaysia
New Range Rover Sport
Launched in June 2014
in Malaysia
Total FY2014’s sales volume
McLaren 650S Spider
Launched in June 2014
in Malaysia
MAA revised upwards its
2014’s TIV forecast
*Total industry volume - TIV
4QFY2014’s new model launches in
China & Australia
Overall improvement in sales
volume by +3% YoY
76,309
81,050
FY11
FY12
In units
89,126
92,112
Mini F56
Launched on 23 May
2014 in China
FY13
FY14
Porsche Macan
Launched in June 2014
in Australia
33
FY2013/2014 Highlights (Motors)
Actively Pursuing Value Creation to Enhance Sime Darby Motors (SDM)’s
Leadership Position in the Automotive Industry
Strategic Initiatives in FY2014
Brisbane, Australia
New
BMW/MINI
distributorship
& dealership in
new locations
Ho Chi Minh, Vietnam
• Acquired the BMW
dealership on 4
Apr’14
• Positive sales
volume in FY2014
(~1,300 units of
vehicles sold)
• Acquired the BMW &
MINI distributorship
on 15 Nov’13
• Made its maiden
contributions in
4QFY14 (~290 units
of vehicles sold)
Secured KIA distributorship and dealership in Taiwan
New marque in
new market
• Sime Darby Kia Taiwan was set up on 23 Aug’13 and is the
Group’s first KIA distributorship right
• Target to launch the first showroom in Neihu, Taipei by
end-CY14
• In Apr’14, 11 units of KIA Picanto sample cars for testing
& inspection purposes have been successfully assembled
Formed Jaguar Land Rover (JLR) Malaysia
Strategic
partnership
• A joint venture between Sisma
Auto & SDM
• As an exclusive importer and
distributor for Jaguar & Land
Rover in Malaysia
• The 4S Center showroom is
located at Glenmarie, Shah Alam
34
Industry Outlook
Slight Slowdown in Malaysian’s Property Sector
Residential Property Transaction (Unit)
YoY
100%
80%
60%
40%
20%
Low to mid market (RM10,000-RM250,000)
Mid market (RM250,000-RM500,000)
Mid to High market (RM500,000-RM1,000,000)
High market (>RM1,000,000)
Bank Negara Malaysia
(BNM) increased the
Overnight Policy Rate
YoY
(OPR) by 0.25% to
100% 3.25% and tightened
80%
housing loan requirements
Interest Rates vs. Housing Loans Approvals
(3 Months Moving Average)
%
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Mar-14
Dec-13
Sep-13
Jun-13
Mar-13
Dec-12
Sep-12
Jun-12
Mar-12
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Mar-09
Dec-08
Sep-08
Jun-08
Mar-08
Dec-07
60%
40%
20%
0%
-20%
Interest Rates (LHS)
Source: CEIC as at end-July 2014
*GST to be effective April 2015
Mar-14
Dec-13
Jun-13
Sep-13
Mar-13
Dec-12
Sep-12
Jun-12
Mar-12
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Mar-09
Dec-08
Sep-08
Jun-08
Mar-08
Dec-07
Sep-07
Jun-07
Mar-07
-40%
Jun-14
-40%
Sep-07
-20%
Jun-07
Mar-07
0%
• Demand for lower
priced landed units
(<RM500k/unit) for
own occupation is
expected to remain
strong
• Mid-market properties
segment posed
positive growth in
Dec’13-Mar’14
(2% to 3%)
 However the buying
interest is expected to
return in 2HCY14
onwards in anticipation
of cost push inflation
factors from the Goods
& Services Tax (GST)
implementation
Housing Loan Approvals (RHS)
35
FY2013/2014 Highlights (Property)
Higher Earnings Attributable to Commercial & Themed-township Developments
Key highlights of the property launches in 4QFY14
Geta, Bdr. Bkt Raja
Type
: DSLH
Average Price : RM661K
Launch date : Apr’14
Take-Up Rate : 77%
Nafiri, Bdr. Bkt Raja
Type
: DSLH
Average Price : RM707K
Launch date : Jun’14
Take-Up Rate : 67%
TPP, Taman Pasir Putih
Type
: Industrial Lot
Average Price : RM2.8mn
Launch date : Apr’14
Take-Up Rate : 100%
Factory Lot, Bdr Bkt Raja
Type
: Terrace factory
Average Price : RM2.8mn
Launch date : Apr’14
Take-Up Rate : 100%
Sustained demand for affordable landed properties
~70% of the division’s product offerings are affordable landed properties priced
<RM750k per units
The Pagoh Education Hub’s construction progress is on track
Pagoh Education Hub (858 acres) is the catalyst for a
viable integrated University township development
•
The earthwork is 100% completed
•
Overall progress of the construction is at ~18% as at 31 Jul’14
•
Target launch of the first residential project by mid-2015
36
UTHM IBS installation in progress
Note: UTHM – University Tun Hussein Onn Malaysia, IBS – Industrialised Business System
FY2013/2014 Highlights (Property)
Registered Good Operational Performances in FY2014
Key highlights in the Property Division
+48%
1,552
2,295
Unbilled sales
(RM’mn)
+44%
+28%
2,156
FY2013
3,049
2,750
GSV
(RM’mn)
33 projects
were
successfully
launched
during the year
2,111
FY2014
Units sold
(Unit)
~75% average
take-up rate in
FY2014*
Upcoming property launches in 1HFY2015
Elmina East
Superlink Homes,
City of Elmina
• A wellness and
livable city
accentuating a
balanced &
wholesome lifestyle
• Estimated GDV of
RM103mn
Note : GSV – Gross Sales Value, GDV – Gross Development Value
*Within the first 3 months of launching
Battersea Power
Station Phase 3,
London
• Global launch in
major cities for
residential,
commercial, retail
& leisure targeted
in Oct’ 14
• Estimated GDV of
£1.9bn
SJCC
Development
Phase 1 Soho
• Transit-Oriented
Development
(“TOD”) within
well established
township in
Subang Jaya
• Estimated GDV
of RM181mn
37
Industry Outlook
Encouraging Macroeconomic Data Continues to Provide Positive Vibes
through Higher Domestic and Foreign Demand
Index
Port Climate Index in China (Jun’09 to Jun’14 )
200
Bohai Rim
Yangtze River Delta
Pearl River Delta
150
•
Feb-14
Oct-13
Jun-13
Feb-13
Oct-12
Jun-12
Feb-12
Oct-11
Jun-11
Feb-11
Oct-10
Jun-10
Feb-10
The Bohai Rim (includes Dalian, Qingdao & Tianjin) in China has outperformed the
other two major regions since CY2012
•
•
Oct-09
Jun-09
100
Following the rebound after the Chinese New Year period, the index for all three
regions are trending downwards due to seasonal factors
Nonetheless, the Shandong’s Secondary Industry GDP growth has been consistently
above China’s Secondary Industry GDP growth which indicates ongoing strong
economic activities in the Shandong province
•
Secondary Industry GDP measure income generated in sectors that process raw
materials (e.g.: construction and industrial production)
38
Source: CEIC
FY2013/2014 Highlights (Energy & Utilities)
Port Operations in the Shandong Province Showed Positive Results on the
Back of Resilient Demand and Improved Cargo Mix
CAGR (FY11-FY14):
RM’mn
70
+21% in Revenue
+16% in PBIT
60
175.4
150
119.7
30
20
200
149.6
50
40
212.4
RM’mn
250
49.1
41.0
26.1
22.8
63.5
55.8
28.6
31.2
10
100
50
0
FY11
FY12
Throughput (mn MT)
FY13
PBIT (RM'mn)
FY14
Revenue (RM'mn)
Sime Darby Port Operations in China
• Sime Darby’s port operations in Jining and Weifang have been growing consistently for
the past 4 years
• In FY2014, the port operations recorded an increase of 21% and 14% in Revenue
and PBIT respectively in comparison to FY2013
• Following the commencement of the container operation in December 2012, Weifang Port
handled 103,054 TEUs of containers in FY2014
• A significant milestone as a result of strong demand for container handling
services
Note : TEUs refers to twenty-foot equivalent unit
39
SIME DARBY’S GROWTH
AGENDA
40
Sime Darby’s Growth Agenda
5-Year Strategy Blueprint
Objective : To be a leading diversified multinational corporation
delivering sustainable value to all stakeholders
Market Cap
Target
RM100bn*
FY 2014
Market Cap
RM57bn
FY 2011
Market Cap
RM53bn
1
Strategic Thrusts
REALISE FULL
POTENTIAL OF
THE CORE
BUSINESSES
4
3
2
STRIVE FOR
LEADERSHIP
POSITION
PURSUE
STRATEGIC
PORTFOLIO
GROWTH
INSTITUTE A
PERFORMANCE
AND
VALUE-DRIVEN
CULTURE
* Aspirational target with no specific timeframe
41
Strategy Blueprint – Plantation Division
VISION
To be a leading Integrated Global
Plantation Company
5-YEAR OBJECTIVES (FY2012-FY2016)
Best-in-class global
producer of certified
sustainable
palm oil
STRATEGIC
OVERVIEW
Competitively
active
downstream
businesses
ROIC >18%
FFB Yield
25MT/ha
&
OER 23%
KEY
ACHIEVEMENTS
FY2014
•
•
•
•
FFB yield per mature hectare : 20.39 MT/ha
New planting of ~18,000 ha and replanting of ~21,000 ha
97% RSPO certification (57 out of 59 mills)*
OER : 21.86%
KEY SUCCESS
FACTORS
•
•
•
•
•
#1 listed Oil Palm Plantation Company (in terms of land bank size)
Largest certified sustainable palm oil producer (2.14 mil MT as at 30 June 2014)
Large land bank for growth i.e. Liberia 220k ha
Best yield improvement and cost management practices
Superior breeding material (seeds and genomics)
KEY STRATEGIC
ACTIONS
•
•
•
•
Improvement in operational efficiencies
Land bank expansion
Downstream operations
Sustainable practices
ROIC – Return on Invested Capital
FFB – Fresh Fruit Bunch
OER – Oil Extraction Rate
RSPO – Roundtable on Sustainable Palm Oil
*Two more mills undergoing Executive Board review
42
Strategy Blueprint – Industrial Division
VISION
To be a High Performance Distributor of Caterpillar Products and
Allied Solutions that Deliver Sustainable Shareholder Value
through Enterprise and Initiative
5-YEAR OBJECTIVES (FY2012-FY2016)
World class Caterpillar
dealerships and Allied
solutions in the Asia
Pacific region
STRATEGIC
OVERVIEW
KEY
ACHIEVEMENTS
FY2014
KEY SUCCESS
FACTORS
KEY STRATEGIC
ACTIONS
No.1 mining equipment
and solutions supplier in
Australia, China &
Malaysia
ROIC >18%
• Continued focus on cost efficiency and deferred low priority capital expenditure
• Resilient order book : RM2.9bn (as at 30 June 2014)
• Leader in mining equipment sales in Australia (Australasian mining PINS of 75%)
and China
• Largest CAT marine dealer in China
•
•
•
•
•
Strong relationship with CAT (since 1929)
Efficient and large distribution channels
#3 Largest CAT dealer in the world
Superior product quality and good after-sales service
Exclusive distributorships
• Expansion of distribution channels in Australia
• Capitalize on the mining potential in Xinjiang Province in China
• Expansion of allied services & products in Malaysia
43
Strategy Blueprint – Motors Division
VISION
To be a Leading Automotive Player in
the Asia Pacific region
5-YEAR OBJECTIVES (FY2012-FY2016)
STRATEGIC OVERVIEW
KEY
ACHIEVEMENTS
FY2014
KEY SUCCESS FACTORS
KEY STRATEGIC
ACTIONS
Double profit
contribution
Divisional revenue of
>RM20 billion
ROIC >15%
• Highest number of vehicles sold in the last five years (92,112 units sold in
FY2014)
• Secured new distributorships/dealerships in new geographical markets
• KIA dealership in Taiwan, BMW/MINI distributorship in Vietnam & BMW
dealership in Brisbane
• Commencement of new used car operations in China and Singapore
• Construction of new after sales center in China (BMW Dashi, Panyu District)
• Strong relationship with principals with reputable brands. i.e. BMW (since
1970s)
• Strategic positioning in high growth geographies (e.g. China & Malaysia)
• #3 BMW dealer in the world
• #1 BMW dealer in Singapore, Hong Kong & Macau
• Showroom expansion
• Expand after-sales and used car segment
• Expansion into new geographical markets
44
Strategy Blueprint – Property Division
VISION
To be a Leader in Building
Sustainable Communities
5-YEAR OBJECTIVES (FY2012-FY2016)
STRATEGIC
OVERVIEW
KEY
ACHIEVEMENTS
FY2014
KEY SUCCESS
FACTORS
KEY STRATEGIC
ACTIONS
Double profit
contribution
Achieve 80:20 profit ratio
of Property Development:
Property Investment
ROIC >15%
Top 3 brands in
Malaysia
• A total of 33 residential and commercial projects were launched with 3,049 units sold
• Average take-up rate of 75% within the first three months of launching
• Successful launching of the Battersea Power Station Property Development Phase 1
(Jan’13) & Phase 2 (May’14) in London
• Phase 1 average take-up rates of 99% (to date)
• Phase 2 average take-up rates of 95% (within first week of sales)
• Successful launching of 4 themed-township developments: Elmina West (City of Elmina,
Selangor), Chemara Hills (Negeri Sembilan), Bukit Raja City (Selangor) and SJ 7
(Selangor)
• Largest land bank owner in Malaysia with strong focus in prime-suburban areas of the
Greater KL region
• Strong branding
• #1 Best Commercial High-rise Dev. in the Asia Pacific Region
• #1 Best Developer & Villa Dev. in South East Asia Region
• Leading Green & Sustainable townships and product features
• Accelerate new townships development in Malaysia & overseas
• Enhance and accelerate the value creation via Real Estate Initiatives
• Pursue strategic partnership
45
Strategy Blueprint – E&U Division
VISION
To be a Leading Player in Port Operations,
Integrated in Water Business & Logistic Park Services
in the Shandong Province
5-YEAR OBJECTIVES (FY2012-FY2016)
Weifang Port
To be a sustainable &
profitable port in Shandong
STRATEGIC
OVERVIEW
KEY
ACHIEVEMENTS
FY2014
KEY SUCCESS
FACTORS
KEY STRATEGIC
ACTIONS
Jining Ports
To be the largest
sustainable port network
operator in Jining
Weifang Water
To be an integrated water
services provider in
Weifang
• Port operations in the Shandong province recorded a 4-year (FY11-FY14) CAGR of
21% for Revenue and 16% for PBIT
• Weifang Port
• Completion and handover of 3 X 20,000 MT berths in Nov’13
• The 3X10,000 MT berths have been qualified for receiving and handling
international vessels since Feb’14
• Commenced approval for the construction of 2 X 50,000 MT and 3 X 30,000 MT
berths
• Taiping Port
• Officially commenced full operations in Nov’13
•
•
•
•
Strong, good relationship with the local government
Competitive pricing strategy
Exclusive port operator in Weifang
Strategically located within the prime region of the Bohai Sea’s economic belt
• Expand and diversify the annual capacity and capability of Weifang Port
• Diversify cargo and develop logistics support at Jining Ports
• Expand in tandem with the Government’s development plans
CAGR – Compound Annual Growth Rate
46
Reaffirming Sime Darby’s Key Strengths
A Multinational Conglomerate with Strong Core Competencies
OVER 100 YEARS TRACK RECORD
OF VALUE CREATION
HIGHLY EXPERIENCED &
COMPETENT MANAGEMENT
TEAM
STRONG GOVERNANCE
STRUCTURE
SOUND FINANCIAL PROFILE
WELL-POSITIONED IN HIGH
GROWTH ASIAN
ECONOMIES
DIVERSIFIED BUSINESS
PORTFOLIO
CONTINUOUSLY ASSESSING AND
BALANCING PORTFOLIO MIX
47
APPENDICES
1. Plantation
2. Industrial
3. Motors
4. Property
5. Energy & Utilities
48
Appendix 1a : Plantation Division
Upstream Geographical Coverage
Liberia
Planted
: 10,142 ha
Operating Area : 220,000 ha
As at 30th June 2014
Malaysia
Indonesia
Liberia
Group
Total Landbank
(ha)
349,279
294,862
220,000
864,141
Total Oil Palm
Planted Area (ha)
310.789
204,466
10,035
525,290
Total Rubber
Planted Area (ha)
8,642
-
107
8,749
OP – Oil Palm, R - Rubber
Sabah
Planted
Op. Area
: 46,949 ha
: 53,822 ha
Sulawesi
Planted
Op. Area
: 4,082 ha
: 4,712 ha
Kalimantan
Planted
: 130,547 ha
Op. Area
: 185,506 ha
Sarawak
Planted
Op. Area
: 39,758 ha
: 47,296 ha
Sumatera
Planted
:
69,837 ha
Op. Area
: 100,983 ha
Peninsular Malaysia
Planted
: 233,813 ha
Op. Area
: 248,161 ha
49
Appendix 1b : Plantation Division
Age Profile (YTD June 2014)
The Group still has a relatively young age profile of its trees
YTD June 2014
Sime Darby has 525,290 ha of oil palm planted area of
which 86.7% of the trees are mature and the
remaining 13.3% are immature.
50
Appendix 2a : Industrial Division
Caterpillar’s Acquisition of Bucyrus
With the addition of Bucyrus products, Caterpillar’s addressable market
will grow from 23% to 75%
CAT
Bucyrus
Joy
Joy
Komatsu
Komatsu
Hitachi
Hitachi
Liebherr
Road
Headers
Diesel
Transport
Continuous
Miners
Truck &
Loaders
Drills
Shearers
Armored Face
Conveyors
Roof
Supports
Underground Mining Equipment
Belt
Systems
Surface Belt
Systems
Draglines
Rope
Shovels
Surface
Drills
Highwall
Miners
Hydraulic
Shovels
Dozers &
Graders
CAT
Mining
Trucks
Surface Mining Equipment
Road
Headers
Diesel
Transport
Continuous
Miners
Drills
Truck &
Loaders
Shearers
Armored Face
Conveyors
Roof
Supports
Underground Mining Equipment
Belt
Systems
Draglines
Surface Belt
Systems
Rope
Shovels
Surface
Drills
Highwall
Miners
Hydraulic
Shovels
Mining
Trucks
Wheel
Loaders
Dozers &
Graders
Surface Mining Equipment
Caterpillar’s combined mining product line
(post-acquisition)
Wheel
Loaders
Caterpillar’s current mining product line
(pre-acquisition)
Liebherr
Source: Caterpillar
51
Appendix 2b : Industrial Division
Investment in China
• Primary Markets : Construction & power systems
• Presence in Hong Kong, Macau and 7 provinces in the Southeastern part
of China, plus Xinjiang
Xinjiang coal
reserves are
~40%
of China’s total
coal deposits
Xinjiang
Jiangxi
Hunan
Fujian
Dealership
Territories
Guangxi
Guangdong
Branch / CAT Rental Store (CRS)
Hong Kong
& Macau
Provincial HQ
Hainan
52
Appendix 3 : Motors Division
Distributors and dealers of luxury marques
Malaysia
Singapore
Thailand
Hong Kong
Macau
China
Australia
New Zealand
Vietnam
Distributor
& Dealer
Distributor
& Dealer
Dealer
Distributor
& Dealer
Distributor
& Dealer
Dealer
Distributor
Distributor
& Dealer
Distributor
& Dealer
Taiwan
Dealer
Distributor
& Dealer
Rental
Distributor
Rental
Dealer
Assembly
(Inokom)
Dealer
Rental
53
Appendix 4a : Property Division
Greater Kuala Lumpur
Existing and Future Townships
Existing Townships
(balance landbank of 2,700 acres)
1
Guthrie Corridor
a. Bukit Jelutong (2,200 acres : 90% completed)
b. Denai Alam (1,000 acres: 70% completed)
2
Subang Jaya – SJCC, USJ Heights, Putra Heights
(6,000 acres: 90% completed)
3
Ara Damansara (762 acres: 90% completed)
4
Bandar Bukit Raja 1 (1,672 acres : 80% completed)
5
Melawati (905 acres: 80% completed)
6
Nilai Impian/Utama (1,263 acres: 50% completed)
7
KLGCC (365 acres)
9
10
Bandar Ainsdale
(520 acres)
Affordable homes
Guthrie Corridor
(2,294 acres)
a. Elmina East
b. Elmina West
Subang Jaya –
Taipan City
(27 acres)
Bdr Bukit Raja
11
5
1
9
1
11 Bandar Bukit Raja 2 & 3
(2,690 acres)
12 Sg Sekah Estate (636 acres)
Vision Valley M’sia
13 East (3,100 acres)
a.
Sports Cluster
b.
Education Cluster
Kuala Lumpur
7
4
3
Ara Damansara
2
Subang Jaya
10
2
3
Putrajaya
4
Cyberjaya
SELANGOR
Future Townships (9,267 acres)
8
Guthrie
Corridor
5
KLIA
12
6
Current Townships
8
Future Townships
Sime Darby Property is also
collaborating with its
strategic partners on
developments in Penang,
Johor and overseas
13
Labu
Sepang
NEGERI SEMBILAN
54
Appendix 4b : Property Division
Sime Darby Property’s Biggest International Property Development To Date
Source : battersea-powerstation.com
Battersea Power Station
Strong
International
Experience
Financial
Strength
Execution
Capabilities
• 39 acres of freehold land
• GDV of £8 billion
• Land cost of £400 million is only 5% of the GDV
• Mixed Development (57% Residential, 43% Commercial)
• SPA signed on 4th July 2012, completed on 4th September 2012
• Phase 2 – Recently launched residential sales garnered a
take-up rate of 95%
55
Appendix 5a : Energy & Utilities Division
Future Growth Plans
WEIFANG WATER TREATMENT
Shandong
Province, China
THROUGHPUT & CAPACITY
FY2014
FY2016
Current Throughput
Target Throughput
32 million MT
52 million MT
Current Capacity
Target Capacity
Binzhou
73 million MT
35 million MT
Dezhou
Yantai
FY2014
FY2016
Current Throughput
Target Throughput
18 million MT
50 million MT
Current Capacity
Target Capacity
22 million MT
100 million MT
Weihai
Qingdao
Jinan
Liaocheng
Dongying
WEIFANG PORT THROUGHPUT
& CAPACITY
Zibo
Weifang
Laiwu
Taian
Rizhao
Jining
Heze
Linyi
Zaozhuang
JINING PORTS & THROUGHPUT
CAPACITY
FY2014
FY2016
Current Throughput
Target Throughput
13 million MT
14 million MT
Current Capacity
Target Capacity
15 million MT
19 million MT
Beijing
CHINA
Shandong
Shanghai
56
Appendix 5b : Energy & Utilities Division
Additional investment of RM1.4 billion to expand Weifang Port’s
operations in China
3 x 30,000 MT general cargo
berths
66
77
6 x 30,000 MT general cargo
berths
1
1
3x 10,000 MT
dry bulk berths
2 x 50,000 MT liquid cargo
berths
8
8
4 x 30,000 MT dry bulk, salt berths
5
2
2
33
4
4
3 x 30,000 MT crude oil,
petroleum, liquid chemicals
berths
Existing berths
Upcoming berths
3 x 20,000 MT general
cargo berths
Berths Sizes
3 x 30,000 MT
6 x 30,000 MT
2 x 50,000 MT
2 x 5,000 MT dry bulk berths
Berth Type
Status
Pending regulatory approvals and
development works
General Berths
(target to be operational by
Liquid Berths
FY15/16)
Investment of RM 1.4 billion in the
next three years
Container Berths
• Increase in throughput from the current 18m MT to > 50m MT (by FY16)
• Increase in capacity from the current 22m MT to 100m MT (by FY16)
57
Thank You