1
Annual General Meeting 13 November 2014
8th Annual General Meeting 13 November 2014
Citi ASEAN Investor Conference5 June 2015Singapore
2
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
<10% of company’s total revenue
<20% of company’s total revenue
<25% 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
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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
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
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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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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
16
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
24
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
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
27
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
28
• 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
31
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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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
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
KEY FY2014 ACHIEVEMENT
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
KEY FY2014 ACHIEVEMENT
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
KEY FY2014 ACHIEVEMENT
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
Distributor & Dealer
DealerDistributor & Dealer
Distributor & Dealer
Distributor
Rental
Distributor & Dealer
Dealer
Rental
Dealer
China
Dealer
Distributor
Dealer
Vietnam
Distributor & Dealer
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 general cargo berths
3 x 20,000 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