UMW Holdings Bhd

UMW Holdings Berhad
UMW
CORPORATE PRESENTATION
March, 2016
UMW MILESTONES
1917
1960s
1970
1980s
1990s
2000s
2010s
-
- Awarded Komatsu
heavy equipment
distributorship in
‟65
- Secured the
Toyota Forklift
franchise in ‟67
- Chia Yee Soh
founded a
small family
business in
Singapore
- United Motor
Works (Malaysia)
Holdings Berhad
listed on stock
exchange
- Awarded Toyota
vehicle franchise
in ‟82
- Permodalan
Nasional Berhad
became major
shareholder in
‟87
- Largest
shareholder in
the 2nd national
car project,
Perodua,
with Daihatsu
Motor Co. Ltd. as
the technology
provider in ‟93
- Oil & Gas
Division
established as
UMW‟s 4th core
business in „02;
- UMW is the official
Lexus distributor
in ‟06
- Rebranding of
UMW in „08
UMW Holdings Berhad
UMW Oil &
Gas
Corporation
Berhad listed
on Bursa
Malaysia in
„13
2
ENHANCING CAPABILITIES
Laying Building Blocks for Excellence
33 years partner with Toyota
Tier-1 supplier to
Rolls-Royce
22 years partner with Daihatsu
FAN CASE
MANUFACTURER
Founded in 1917
AUTOMOTIVE ASSEMBLY
BICYCLE REPAIR
SHOP
UMW Holdings Berhad
3
UMW AT A GLANCE
Key Business Facts
Shareholding Structure
(As of 29/02/2016)
Headquarters:
Shah Alam, Malaysia
Number of Employees (February 2016):
12,481
Sales (2015):
US$ 3.71 billion
PBT (2015):
US$ 0.684 million
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
Services Berhad (RAM):
AAA
Permodalan Nasional Berhad (PNB)/
PNB Managed Unit Trust Funds, 56.08%
Foreign
Shareholders, 12.52%
Employees Provident
Fund Board, 17.61%
Other Local
Shareholders, 13.79%
* PNB and EPF shareholdings are based on
interest and deemed interest
direct
Rate as of 31/03/2016 : 1 USD = MYR 3.883
UMW Holdings Berhad
4
BUSINESS STRUCTURE
Automotive
UMW TOYOTA
MOTOR
• Lexus
• Toyota
PERUSAHAAN
OTOMOBIL
KEDUA
• Perodua
Equipment
Oil & Gas
(Listed Company)
HEAVY EQUIPMENT
• Komatsu
• Bomag
• Rosenbauer
• LS
OFFSHORE DRILLING
OPERATIONS
• Semi-Submersible Rig
• Jack-Up Rigs
• Workover Rigs
INDUSTRIAL
EQUIPMENT
• Toyota
• Raymond
• Aichi
• Tokai
• Tennant
• GS Yuasa
• BT
• Trelleborg
OILFIELD
SERVICES
• Pipe Inspection, Repair
& Threading
MARINE & POWER
EQUIPMENT
• CompAir
• Honda
• Mitsubishi
• Cameron
• Desmi
Others – O&G Related
Assets
MANUFACTURE OF
PIPES
• Seamless OCTG
• SSAW Line Pipes
• LSAW Line Pipes
ONSHORE RIGS
FABRICATION OF OIL &
GAS AND OTHER
STRUCTURES
SUPPLY OF OILFIELD
PRODUCTS
Manufacturing
& Engineering
AEROSPACE
COMPONENT
• Fan case
LUBRICANTS &
FLUIDS
• Pennzoil
• Repsol
• Grantt
• GEP Fluids & Coolants
SHOCK
ABSORBERS/HYDRAULI
C POWER STEERING
PUMPS & SYSTEMS
• KYB
AUTO COMPONENTS
• Filtration Products
• Plastic Injection
• Metal Stamping
• DENSO Spark Plugs &
Wiper Blades
• GEP Filters & Brake
Pads
DOMESTIC & INTERNATIONAL PRESENCE
Extensive Network – 13 countries
Malaysia
Branches
Automotive
Dealerships
Equipment
UMW Toyota Motor
Sdn. Bhd.
41
Topmark
(Division of UMW Toyota)
5
-
Perusahaan Otomobil
Kedua Sdn. Bhd.
(Associate)
41
142
UMW Industries (1985)
Sdn. Bhd.
16
-
65
Turkmenistan
Myanmar
Manufacturing & Engineering
Oil & Gas
China
Taiwan
UMW Industrial Power
Sdn. Bhd.
8
-
UMW (East Malaysia)
Sdn. Bhd. (Sabah &
Sarawak)
9
-
UMW Equipment
Sdn. Bhd.
5
Toyota Capital Malaysia
Sdn. Bhd. (Associate)
Total
Vietnam
Malaysia
Papua
New Guinea
Singapore
-
Australia
5
-
130
207
Indonesia
Oman
India
Thailand
UMW Holdings Berhad
6
AUTOMOTIVE
Operations
UMW AUTOMOTIVE DIVISION
Toyota Motor Corporation
39%
Toyota Tsusho
Corporation
10%
Daihatsu Motor Co., Ltd
20%
MBM Resources Bhd
20%
PNB Equity Resource
Corporation Sdn Bhd
10%
Mitsui & Co., Ltd
4.2%
Daihatsu (Malaysia) Sdn Bhd
51%
UMW Toyota Motor
Sdn. Bhd.
Mitsui & Co., ( Asia Pacific) Pte
Ltd
38%
5%
2.8%
Perusahaan Otomobil Kedua
Sdn. Bhd.
UMW Holdings Berhad
8
UMW AUTOMOTIVE DIVISION
Assembly Services
Sdn. Bhd.
Automotive Industries
Sdn. Bhd.
Perodua Sales
Sdn. Bhd.
Perodua Manufacturing
Sdn. Bhd.
Assembler of vehicles
Manufacturer and supplier of
exhaust systems
Marketing and distribution of
motor vehicles, related spare
parts and other related activities
Manufacturer and assembler of
motor vehicles
Toyota Boshoku
UMW Sdn. Bhd.
UMW Toyotsu Motors
Sdn. Bhd.
Ingress Technologies
Sdn. Bhd.
Perodua Engine
Manufacturing Sdn. Bhd.
Manufacturer of car seats
Sales and service of Toyota and
Lexus vehicles and parts
Manufacture complete door
assemblies and press parts
Manufacturer and dealer in
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%
1,000,000
13.3%
-0.7%
-11.1%
-6.7%
800,000
600,000
-2.0%
4.6% 4.5% 1.6% 0.03%
-0.8%
490,768 487,176
20%
0%
605,156 600,123 627,753
552,316
487,605
12.7%
12.5%
655,793 666,465 666,674
-20%
548,115 536,905
-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
20%
18.6%
16.5%
16.7%
17.0%
16.9%
15.3%
15.2%
14.8%
14.4%
14.1%
150,000
18%
15.6%
16%
14%
9.9%
10.6%
91,003
100,000
106,622
101,839
81,808 82,188
82,089
91,990 88,662
103,636
95,861
92,521
12%
10%
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
300,000
40%
31.7%
30.6%
250,000
33.3%
32.0%
30.5% 31.1% 31.2% 30.0% 30.1%30.1%
29.3%
30%
25.0% 25.3%
213,307
189,137196,071195,579
188,641
179,989
200,000
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
2014
195,579
29.3%
2014
103,636
15.6%
Brand
2015
2014
Market
Share %
Units
Market
Share %
Units
Proton
Honda
Nissan
Hyundai, Kia
Volkswagen
Others
15.3
14.2
7.1
1.6
1.0
14.4
102,175
94,902
47,235
10,960
6,405
95,829
17.4
11.6
7.0
2.5
1.3
15.3
115,783
77,495
46,352
16,886
8,916
101,818
Total
53.6
357,506
55.1
367,250
Perodua
213,307
32.0%
UMW Toyota
95,861
14.4%
Others
357,506
53.6%
2014
367,250
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
200
9 models
RM242k-1.09m
11 models
RM65k-393k
RM
„000
3 models
RM24.6k-65k
20
40
Lexus LS 600hL
Toyota Alphard
60
80
60
80
100
120
140
160
300
400
500
600
700
800
900
1,000 1,100
180
Top Selling Models
Perodua
Axia
Perodua
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
Honda
Power
Products
CompAir
Gas Compressor
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.
8
Offshore Rigs
5
Hydraulic
Workover
Units
Drilling Services
 1 Semi-submersible – NAGA 1
 7 Jack-ups – UMW NAGA 2, UMW NAGA 3, UMW NAGA 4,
UMW NAGA 5, UMW NAGA 6, UMW NAGA 7, UMW NAGA 8
 UMW GAIT I, UMW GAIT II, UMW GAIT III, UMW GAIT V,
UMW GAIT VI
 1 West Plant & 1 East Plant in Labuan, Malaysia
Oilfield Services
6
 1 Sattahip & 1 Songkhla, Thailand
Plants
 1 Tianjin, China
 1 Turkmenbash, Turkmenistan
Segmental revenue breakdown
for FY2015
Drilling
services
96%
Oilfield
services
4%
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
DRILLING RIG
CUSTOMER
UMW NAGA 2
Bidding for contracts
UMW NAGA 3
Bidding for contracts
UMW NAGA 4
PETRONAS Carigali Sdn. Bhd.
CONTRACT DURATION
3 years
CONTRACT
AWARDED
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
for renewal
15 October 2015
UMW NAGA 8
SapuraKencana Petroleum Bhd.
18 firm wells; 3 option wells
for renewal
28 September 2015
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
capacity
340,000 lbs
Maximum pulling
capacity
460,000 lbs
Maximum snubbing
capacity
150,000 lbs
Maximum snubbing
capacity
225,000 lbs
UMW GAIT III
UMW GAIT V
Maximum pulling
capacity
460,000 lbs
Maximum pulling
capacity
460,000 lbs
Maximum snubbing
capacity
225,000 lbs
Maximum snubbing
capacity
225,000 lbs
UMW GAIT VI
Maximum pulling
capacity
460,000 lbs
Maximum snubbing
capacity
225,000 lbs
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

2 plants located in Labuan offering premium
OCTG threading, inspection and repair
services
 Owner of quality oilfield services assets,
including a threading facility in Malaysia with
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


Located in Tianjian, China
„One-stop shop‟ multi premium connection
threading base, inspection and related
workshop services
 Received
appreciation
letter
from
Schlumberger China and awarded one of the
„best supplier‟ under Schlumberger‟s global
supplier system in 2012
UOT (Thailand) Limited

Located in Songkhla and Sattahip,
Thailand
 Focus on repair of damaged threaded
pipes and the threading of OCTG and
accessories
UMW Oilpipe Services (Turkmenistan) Ltd


Located in Turkmenbashy, Turkmenistan
Provides machine shop services for repair
and threading of casing, tubing and oilfield
accessories,
tubular
inspection
and
hardbanding of drill pipes and collars
 Mainly supports PETRONAS‟ subsidiary in
Turkmenistan‟s offshore fields in the
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
COMPONENT
Fan
Case
LUBRICANTS
Lubricants &
Fluids
Lubricants &
Fluids
(China)
AUTO COMPONENTS
Shock
Absorbers
& Power
Steering
Automotive
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.
•
UMW will be the only supplier („single-source
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.
Be Part of Asian Supply Chain Development
Single Source Final Assembly of the Trent 1000
and Trent 7000 engines in Singapore
UMW Holdings Berhad
28
LUBETECH SDN BHD (MALAYSIA)
UMW LUBRICANT INTERNATIONAL SDN BHD
(MALAYSIA)
LUBRITECH LIMITED (CHINA)
UMW ADVANTECH SDN BHD
Manufacturing of automotive components in Selangor
Manufacturing and distribution in Selangor
In-house brand
Spain's largest integrated
oil & gas company
American oil
company
* Full capability at TBA
Manufacturing and distribution in Guangdong
KYB-UMW MALAYSIA SDN BHD
KYB-UMW STEERING MALAYSIA SDN BHD
Manufacturing of Automotive shock absorbers in Selangor
Shock Absorbers for
2-wheelers
Shock Absorbers for
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
Revenue
(RM million)
OIL & GAS
Profit Before Taxation
(RM million)
2,020
15,817
14,933
13,952
13,536
1,622
12,820
12,770
10,721
9,869
9,950
1,313
1,277
9,976
856
1,436
1,365
847
754
658
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2005
2006
2007
2008
2009
2010
2011
2012
UMW Holdings Berhad
2013
2014
31
10-YEAR GROUP FINANCIAL HIGHLIGHTS
AUTOMOTIVE
EQUIPMENT
M&E
OIL & GAS
Shareholders‟ Funds
(RM million)
Total Assets
(RM million)
6,581
6,290
16,520
14,595
4,848
4,027
11,491
10,024
4,249
3,774
10,541
3,522
3,130
8,826
7,828
6,491
2,131
5,721
2,342
2,560
5,103
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4
UMW Holdings Berhad
32
Key Performance Indicators – Dividend Policy
ANNUAL DIVIDEND PAYOUT, 50% OF PROFIT NET OF UNREALISED
GAINS
78.7 76.1
75.8 75.2
48.8 50.3 50.8
57.7 59.0
58.8
Target 50%
Payout Ratio (%)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
50.0
30.0
19.0 20.5
Gross Dividend
Per Share Of
RM0.50 Each (sen)
37.0
44.0 41.0
30.0 31.0
20.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
March 08
Share Split from
RM1.00 to RM0.50
each
UMW Holdings Berhad
33
Key Performance Indicators – Target ROSF
RETURN ON SHAREHOLDERS‟ FUNDS
21.9%
16.5%
12.7%
17.0%
13.5%
12.5%
11.7%
10.5%
10.1%
10%
2005
2006
2007
2008
2009
11.7%
10%
2010
2011
2012
10%
10%
10%
10%
2013
2014
• Exceeded minimum annual return on shareholders‟ funds
•
•
•
•
•
•
In 2009, target was 10%. Achieved 10.5%
In 2010, target was 10%. Achieved 13.5%
In 2011, target was 10%. Achieved 11.7%
In 2012, target was 10%. Achieved 21.9%
In 2013, target was 10%, Achieved 11.7%
In 2014, target was 10%, Achieved 10.1%
UMW Holdings Berhad
34
THANK YOU
Roza Shahnaz Omar
Director, Group Strategy
UMW Corporation Sdn. Bhd.
S. Vikneshwaran
Head, Investor & Media Relations
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.