UMW Holdings Berhad — Affin Hwang Auto Virtual Conference 2020
29 slides from UMW Holdings Berhad's conference presentation, Aug 11, 2020
Slide 1: UMW Holdings Berhad Corporate Presentation
UMW HOLDINGS BERHAD CORPORATE PRESENTATION AFFIN HWANG AUTO VIRTUAL CONFERENCE 11 AUGUST 2020 UMW HOLDINGS BERHAD
Slide 2: Our Strength: Leader in Our Core Business Segments
OUR STRENGTH LEADER IN OUR CORE BUSINESS SEGMENTS AUTOMOTIVE EQUIPMENT MANUFACTURING & ENGINEERING • Leader in the Malaysian • Distribute Komatsu heavy • First Malaysian company to automotive industry with equipment in 5 countries in manufacture and assemble 51.4% market share (2019) the Asia-Pacifi
Slide 3: Our Shareholders
OUR SHAREHOLDERS AS AT 30 JUNE 2020 PNB 62.28 ▪ Permodalan Nasional Berhad & PNB Managed Unit Trust Funds, 62.28% RM3.0b EPF 30/6/2020 Foreign Shareholders ▪ Employees Provident Fund Board, Market Capitalisation 12.42 ▪ Foreign Shareholders, 3.74% 12.42% 3.74 7.28 14.28 Other Local Shareholders KWAP
Slide 4: Automotive Segment
AUTOMOTIVE SEGMENT UMW HOLDINGS BERHAD
Slide 5: UMW Group Current Marques and Models
UMW GROUP CURRENT MARQUES AND MODELS LS ES NX RX LX LC UX COMPLETELY KNOCKED-DOWN (CKD) VIOS YARIS HILUX INNOVA FORTUNER RUSH HIACE COMPLETELY BUILT-UP (CBU) THAILAND INDONESIA JAPAN CAMRY COROLLA C-HR AVANZA ALPHARD VELLFIRE HARRIER RAV4 COMPLETELY KNOCKED-DOWN (CKD) MYVI AXIA BEZZA ARUZ ALZA UMW H
Slide 6: Total Industry Volume (TIV) – Malaysia Automotive Association
TOTAL INDUSTRY VOLUME (TIV) – MALAYSIA AUTOMOTIVE ASSOCIATION (MAA) MAA is forecasting a TIV contraction in 2020, with a sales target of 470,000 units Unit sales % Growth Year-on-Year 655,744 666,487 666,677 627,733 605,156 600,123 598,714 604,287 580,085 576,625 12.7% 4.6% 4.5% 3.8% 1.6% 0.0% 0.9%
Slide 7: Unit Sales – UMW Toyota Motor
UNIT SALES – UMW TOYOTA MOTOR (TOYOTA AND LEXUS MODELS) 2020 sales target – 45,000 units Unit sales Market Share 17.0% 15.2% 14.8% 15.6% 14.1% 14.4% 11.2% 12.2% 11.6% 11.1% 106,622 103,636 91,990 92,521 95,861 88,662 70,445 66,562 70,009 65,110 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ▪ Imp
Slide 8: Unit Sales – Perodua (38%-Owned Associate)
UNIT SALES – PERODUA (38%-OWNED ASSOCIATE) Strengthening market share Unit sales Market Share 39.8% 38.0% 35.7% 35.5% 31.2% 32.0% 30.0% 30.1% 29.9% 29.3% 240,341 227,243 213,307 207,110 204,887 188,641 189,137 196,071 195,579 179,989 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ▪ Perodua mainta
Slide 9: Automotive Industry Market Share
AUTOMOTIVE INDUSTRY MARKET SHARE (based on latest available TIV data) UMW Group commanded more than half of the automotive industry’s market share • UMW Group sold 92,639 units 2019 in 1H20 with a market share of 240,341 39.8% 53.0% (2019 – 51.4%) 2019 42.5% 70,009 11.6% Perodua 10.6% 74,170 UMW Toy
Slide 10: Year-to-Date 2020 Unit Sales
YEAR-TO-DATE 2020 UNIT SALES Sales trend improving upon easing of MCO as well as temporary sales tax exemption Enforcement of MCO Sales tax exemption Total Industry Volume (TIV) 91.7% 42,867 41,143 22,518 143 23,309 44,695 Jan Feb Mar Apr May Jun Highest monthly sales UMW Toyota Motor 27.8% 70.0% 3,
Slide 11: UMW Toyota Motor Sales Breakdown
YEAR-TO-DATE 2020 UNIT SALES UMW Toyota Motor sales breakdown CBU, 10% CKD, 90% YEAR-TO-DATE JULY 2020 25,978 Top 3 best-selling models units Models % of total UMWT sales (58% of target) Vios 33% Yaris 23% Order taking for the improved model started in Hilux 22% early August to drive sales UMW HOLDI
Slide 12: UMW Toyota Motor: Focus on Margin Improvements
UMW TOYOTA MOTOR FOCUS ON MARGIN IMPROVEMENTS Revenue elevation Cost optimisation Expansion of model line-up – to appeal to a 1 1 Higher localisation wider audience 2 Attractive financing packages – in partnership with Toyota Capital and other 2 Highly-efficient Bukit Raja plant financial institutio
Slide 13: UMW Toyota Motor: Attractive Step-Up Financing Packages
UMW TOYOTA MOTOR ATTRACTIVE STEP-UP FINANCING PACKAGES TOYOTA EZ BELI • 9-year financing plan – 3-tier step-up • After 6 years, customers can opt to continue with the financing plan, or trade-in for a new Toyota • Currently offered for Yaris, Vios, Avanza, Hilux, Rush, Innova and Corolla *Toyota EZ
Slide 14: Perodua: Leverage on Excellent Brand Perception
PERODUA LEVERAGE ON EXCELLENT BRAND PERCEPTION FOR ENTRY-LEVEL SEGMENT 1 Strategic planning of future car 2 Ride on Perodua’s success in the models entry-level segment • To ensure it can remain competitive with • Perodua introduced an all-new SUV model, exciting models Aruz in January 2019, • Sold 3
Slide 15: Equipment Segment
EQUIPMENT SEGMENT UMW HOLDINGS BERHAD
Slide 16: Equipment Segment: Distributor of Globally-Known Brands
EQUIPMENT SEGMENT DISTRIBUTOR OF GLOBALLY-KNOWN BRANDS IN SOME PARTS OF THE REGION • Agriculture HEAVY • Construction EQUIPMENT • Forestry • Mining Material handling • Industrial and manufacturing • Industrial cleaning- ▪ food and INDUSTRIAL beverage EQUIPMENT Marine & Power ▪ material handling ▪ lo
Slide 17: Heavy Equipment Structure
HEAVY EQUIPMENT STRUCTURE UMW Komatsu Heavy Equipment Sdn Bhd UMW Corporation Komatsu Ltd (74%) (26%) Principal-distributorship relationship Joint-venture agreement between between UMW and Komatsu began UMW and Komatsu begins 1965 Oct 2018 Also distributes: Since 1965 Since 1979 Malaysia Myanmar Sin
Slide 18: Industrial Equipment: Material Handling
INDUSTRIAL EQUIPMENT MATERIAL HANDLING Toyota Forklift Franchise – UMW is one of the Top 10 distributors globally Malaysia China : Since 1965 Shanghai, Singapore Zhejiang Vietnam Brunei Strong market leadership position ▪ No. 1 position in Malaysia since 1972. Toyota forklift maintained its 50% mark
Slide 19: Industrial Equipment: Marine & Power
INDUSTRIAL EQUIPMENT MARINE & POWER Compressors Generators Marine Engines Oil spill equipment UMW HOLDINGS BERHAD 19
Slide 20: Equipment Segment Breakdown
EQUIPMENT SEGMENT BREAKDOWN Industrial equipment business has increasingly been the higher contributor to the segment REVENUE CONTRIBUTION PBT CONTRIBUTION 13% 3% Industrial 84% Industrial Industrial Equipment, Industrial Equipment, Equipment, 53% Equipment, 59% 61% 65% Malaysia Vietnam China 12% He
Slide 21: Equipment Segment: New Products, Services and Business Models
EQUIPMENT SEGMENT OFFER NEW PRODUCTS, SERVICES AND BUSINESS MODELS THAT BEST FIT CUSTOMERS’ NEEDS HEAVY EQUIPMENT INDUSTRIAL EQUIPMENT Refurbishment of ex-rental forklifts to Provide innovative financing scheme 1 1 expand market coverage and retain for end clients customers 2 Improve provision of so
Slide 22: Manufacturing & Engineering Segment
MANUFACTURING & ENGINEERING SEGMENT UMW HOLDINGS BERHAD
Slide 23: Manufacturing & Engineering Segment: Key Products
MANUFACTURING & ENGINEERING SEGMENT KEY PRODUCTS Contract Manufacturer for Aerospace Component Aero Engine Fan Cases Shock Absorbers Auto Components Auto parts Shock Absorbers • Oil Filters, Eco Filters & Fuel Filters Motorcycle suspension units • Air Filters & Cabin Filters Cylinder Head Cover • Hy
Slide 24: Manufacture of Aero Engine Fan Cases
MANUFACTURING & ENGINEERING SEGMENT MANUFACTURE OF AERO ENGINE FAN CASES Component Part Manufacturing for RR’s Most Advanced UMW Aerospace Sdn Bhd Passenger Aircraft Engines • UMW is the 1st Malaysian Tier 1 Supplier to Rolls-Royce - single-source supplier of fan cases for Trent 1000, with productio
Slide 25: Manufacturing & Engineering Segment Breakdown
MANUFACTURING & ENGINEERING SEGMENT BREAKDOWN AEROSPACE HAS STARTED TO CONTRIBUTE POSITIVELY AEROSPACE • Aerospace business registered its maiden 1Q20 PBT breakdown profit in 2019 • Currently operating 24/7 to deliver outstanding orders to Rolls-Royce • Continues to receive orders for fan cases Aero
Slide 26: Manufacturing & Engineering Segment: Improve Margins and Capabilities
MANUFACTURING & ENGINEERING SEGMENT EXPLORE OPPORTUNITIES TO IMPROVE SEGMENT MARGINS AND BUILD IN-HOUSE CAPABILITIES 01 Modernization & capability building 02 Fully utilise aerospace investment 03 Expansion of lubricants business into ASEAN market 04 Pursue High-Value Manufacturing UMW HOLDINGS BERH
Slide 27: Landbank in Serendah
LANDBANK IN SERENDAH UMW HOLDINGS BERHAD
Slide 28: Unlocking Value of Our Assets
UNLOCKING VALUE OF OUR ASSETS MONETISING LONG-HELD ASSETS 861 acres About 52 acres of UMW’s land in of land in Serendah Serendah have been taken up so far Company Acreage UMW Aerospace 24.0 acres Multi-Code Electronics Industries (M) Bhd 8.25 acres Local private companies 18.0 acres T7 Kilgour Sdn B
Slide 29: Thank You
THANK YOU Nik Azlan Bin Nik Abdul Aziz Group Chief Financial Officer UMW Corporation Sdn. Bhd. S. Vikneshwaran General Manager Group Investor & Media Relations Email: [email protected] Telephone: +603 20252104 Corporate Portal www.umw.com.my This material is proprietary and is prepared speci
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