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1UMW HOLDINGS BERHAD

Beyond Boundaries

UMW Holdings Berhad

Corporate Presentation

June 2019


OUR JOURNEY

Enhancing our capabilities

Founded in 1917 Automotive Assembly Aerospace

Automotive repair shop

>37 years with Toyota

>26 years with Daihatsu

Fan Case Manufacturer

for Rolls-Royce

Tier 1 supplier

Laying the building blocks for excellence

UMW HOLDINGS BERHAD

Equipment Distribution

>50 years with Komatsu

>50 years with TICO


59.60%

5.97%

6.34%17.10%

10.99%

OUR SHAREHOLDERS

As at 31 May 2019

31/05/2019

Market Capitalisation

RM6.7b

PNB

EPF

Other Local Shareholders KWAP

Foreign Shareholders

▪ Permodalan Nasional Berhad & PNB

Managed Unit Trust Funds, 59.60%

▪ Employees Provident Fund Board,

10.99%

▪ Foreign Shareholders, 5.97%

▪ Other Local Shareholders, 17.10% ▪ Kumpulan Wang Persaraan

(Diperbadankan), 6.34%

UMW HOLDINGS BERHAD

Bloomberg ticker: UMWH:MK

Total number of shares: 1,168,293,932

Bursa Malaysia Listing sector: Main Market, Consumer Products & Services

Constituent of: FTSE4Good Bursa Malaysia Index


OVERVIEW OF OUR BUSINESSES

• Manufacture

• Assembly

• Distribution

• Sales & service

Automotive Equipment M&E Others

• Distribution

• Trading

• Leasing

• After-sales

service

• Manufacture of

fan case

• Manufacture of

automotive

components

• Blending &

distribution of

lubricants

• Unlocking value

of the land in

Serendah


INTERNATIONAL PRESENCE

8 countries

China

Malaysia

Indonesia

Myanmar

Brunei

Papua

New Guinea

Singapore

Automotive

Equipment

Manufacturing & Engineering

Vietnam

8,300▪ Employees

AA2▪ RAM

▪ Credit Rating

UMW HOLDINGS BERHAD


AUTOMOTIVE


UMW AUTOMOTIVE SEGMENT

UMW Toyota Motor

Sdn. Bhd.*

Manufacturer and dealer in

component parts including

engines, couplings and

transmission components

Perodua Engine Manufacturing

Sdn. Bhd.

Perodua Manufacturing

Sdn. Bhd.

Perodua Sales

Sdn. Bhd.

30%

Toyota Boshoku

UMW Sdn. Bhd.

Automotive Industries

Sdn. Bhd.

Assembly Services

Sdn. Bhd.

Perusahaan Otomobil Kedua

Sdn. Bhd.**

Manufacturer and assembler

of motor vehicles and other

related activities

Investment holding and

provision of management and

administrative services

Marketing and distribution of motor

vehicles, related spare parts and

other related activities

Manufacturer of car

seats, door trims,

headlining, etc.

Manufacturer and

supplier of exhaust

systems

Assembler of

vehicles

Ingress Technologies

Sdn. Bhd.

Manufacturer of complete door

assemblies and press parts

UMW Toyotsu Motors

Sdn. Bhd.

Sales and service of

Toyota and Lexus

vehicles and parts

65%

100%

100%

49%

49%

49%

100%

30%

Investment holding,

importation and distribution

of Toyota vehicles and

related parts

Investment holding and

provision of management and

administrative services

39% Toyota Motor Corporation10% Toyota Tsusho Corporation

4.2% Mitsui & Co., Ltd2.8% Mitsui & Co., ( Asia Pacific) Pte Ltd5% Daihatsu (Malaysia) Sdn Bhd

30% Toyota Capital Malaysia

Sdn. Bhd.

Hire purchase

financing of Toyota

customers

*

51% 38%

51%

51%

******* 41% Daihatsu Motor Co., Ltd6% Mitsui Co., Ltd 4% Mitsui & Co., ( Asia Pacific) Pte Ltd

20% Daihatsu Motor Co., Ltd20% MBM Resources Bhd10% PNB Equity Resource

Corporation Sdn Bhd

**

Perodua Global Manufacturing

Sdn. Bhd.49%

51%

Daihatsu Perodua Engine

Manufacturing Sdn. Bhd.

49% 51% Daihatsu Motor Co., LtdManufacturer of engine and engine components for Energy Efficient Vehicles

Manufacturer and assembler

of motor vehicles and other

related activities

Perodua Auto

Corporation Sdn. Bhd.***


548,115 536,905

605,156 600,123627,753

655,793 666,465 666,674

580,124 576,625598,714

12.5%

-2.0%

12.7%

-0.8%

4.6% 4.5%1.6% 0.0%

-13.0%

-0.6%

3.8%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

-100,000

100,000

300,000

500,000

700,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Unit sales % Growth Year-on-Year

TOTAL INDUSTRY VOLUME (TIV)

2019 target - 600,000 units (0.2% YoY)

▪ 2018 vehicle sales saw a growth of 3.8% year-on-year with 598,714 units sold,

exceeding MAA’s revised target of 585,000 units. The 2018 TIV growth marks the end

of two consecutive years of sales decline.

▪ Sales improved substantially during the three-month GST-free period.

▪ MAA is forecasting a marginal TIV growth in 2019, with a sales target of 600,000 units.

Source: Malaysian Automotive Association


101,839

82,08991,990 88,662

106,622

92,521

103,63695,861

65,11070,445 66,562

18.6%

15.3% 15.2% 14.8%17.0%

14.1%15.6%

14.4%

11.2% 12.2%11.1%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

-10,000

30,000

70,000

110,000

150,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Unit sales Market Share

UMW TOYOTA MOTOR (UMWT) UNIT SALES

2019 sales target - 75,000 Units (13% YoY)

▪ Distributes 7 CKD and 8 CBU Toyota models. Lexus models are all CBU.

▪ Importation of CBU vehicles and CKD components are transacted in US Dollar.

▪ All-new models launched in late 2018 – Toyota Rush (October) and Toyota Camry

(November).

▪ As a result of the run-out of Vios towards the end of 2018, UMWT sold 66,562 units

during the year. Delivery of Rush started in Feb 2019 despite the launch in Oct 2018.



167,393 166,736188,641 179,989 189,137 196,071 195,579

213,307 207,110 204,887227,243

30.5% 31.1% 31.2%30.0% 30.1% 29.9% 29.3%

32.0%

35.7% 35.5%38.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Unit sales Market Share

PERODUA UNIT SALES IN 2018

2019 sales target - 231,000 Units (2% YoY)

*


▪ Perodua exceeded its 2018 target with a record breaking sales of 227,243 units and

maintained its No.1 position in overall market share for the 13th consecutive year. The

all-new Myvi (launched in Nov 2017) was the best-selling model.

▪ Exporting to 6 countries - Indonesia, Singapore, Mauritius, Fiji, Sri Lanka and Brunei.

▪ Order taking for the new 7-seater SUV, Perodua Aruz started on 2 Jan 2019, with

monthly sales target of 2,500 units.


2018: UMW GROUP’S MARKET SHARE

Units & Market Share (%)

38.0%11.1%

50.9%

Brand 2018 2017

Units Market

Share %

Units Market

Share %

Honda

Proton

Nissan

Mazda

Others

102,282

64,744

28,610

16,038

93,235

17.1

10.8

4.8

2.7

15.6

109,511

70,991

27,154

9,730

75,676

19.0

12.3

4.7

1.7

13.1

Total TIV 598,714 576,635

2017

204,887

35.5%

2017

70,445

12.2%

2017

301,303

52.3%

Perodua

227,243 UMW Toyota

66,562

Others

304,909


Other Carmakers’ Sales and Market Share

UMW HOLDINGS BERHAD

• UMW Group sold 293,805

units in 2018 with a market

share of 49.1% (2017 – 47.7%)


EQUIPMENT


EQUIPMENT SEGMENT

▪ Agriculture

▪ Construction

▪ Forestry

▪ Mining

▪ Industrial and manufacturing

▪ Industrial cleaning – food and beverage, material handling and logistics

▪ Industrial and marine power solutions

UMW represents all of the above principals for some of the world’s most recognised products in:

HEAVY

EQUIPMENT Material handling Marine & Power

INDUSTRIAL EQUIPMENT


Heavy Equipment

UMW Komatsu Heavy Equipment Sdn Bhd

UMW Corporation

(74%)

Komatsu Ltd

(26%)Joint venture

effective

1 October 2018

Myanmar

Papua New Guinea

Malaysia

Singapore

Since 1965

Brunei

Since 1979

Since 1996

Principal-distributorship relationship

between UMW and Komatsu began

1965

Oct 2018

Joint-venture agreement between

UMW and Komatsu begins

Also distributes:


Industrial Equipment

Material Handling

Toyota Forklift Franchise

Malaysia

Vietnam

Brunei

Singapore

China :

Shanghai,

Zhejiang

▪ 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 10 Distributors in the world.

▪ Under the 2018 Toyota Material Handling International (TMHI) Award Programme, UMW Industries was awarded

the Diamond Club Recognition, President’s Award (Gold) and Vision 2020 Award.

▪ Have ventured into leasing of Toyota forklifts – about 9,000 units in the region

▪ Revenue contribution in 2018 – Malaysia (50%), Singapore (about 30%) and Vietnam (15%).

Strong market leadership position

Since 1965



Marine & Power

Compressors Generators

Oil spill equipmentMarine engines


MANUFACTURING

& ENGINEERING


MANUFACTURING & ENGINEERING SEGMENT

Key Products

Aerospace Component

Lubricants

Auto Components

Aero

Engine

Fan

Cases

Lubricants &

Fluids

Fluids &

Chemicals

Lubricants &

Fluids

(China)

Shock

Absorbers

Automotive

Components

• Manufacture and assemble automotive shock

absorbers and motorcycle suspension units for both

OEM and REM markets.

• Export to more than 38 countries from Malaysia.


MANUFACTURING & ENGINEERING SEGMENT

Manufacture of Aero Engine Fan Cases

• The contract is for the manufacture of fan cases for the

Trent 1000 aero engines for 25+5 years (Trent 7000

engines later) for Rolls-Royce.

• 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 is located in Serendah, Selangor.

• Successfully delivered the first fan case on 29 November

2017. Started generating revenue in 2018.

• 2019 - Ramp-up production.

Component Part Manufacturing for RR’s Most

Advanced Passenger Aircraft Engines

Part of Rolls-Royce’s Asian Supply Chain

Single Source Final Assembly of the Trent 1000

and Trent 7000 engines in Singapore

UMW is the 1st Malaysian Tier 1 Supplier to Rolls-

Royce

UMW Aerospace Sdn Bhd


FINANCIAL

PERFORMANCE

21

SELECTED GROUP FINANCIAL HIGHLIGHTS

▪ Revenue (RM million) ▪ PATAMI (RM million)

▪ Gross Dividend Per Share of RM0.50 each (sen)

1 2

43

12,770

10,721

12,82013,536

15,817

13,95114,932

14,442

10,43711,06711,304

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

566382

527 486

994

653 652

(1,658)

(641)

345

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

▪ Dividend Payout Ratio (%)

57.7 59.0

75.8 75.2

58.8

78.7 76.1

>100.0

0.0 0.0

25.6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

37.0

20.030.0 31.0

50.044.0 41.0

20.0

0.0 0.07.5

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

March 08

Share Split from

RM1.00 to RM0.50 each

UMW HOLDINGS BERHAD

(37)


1Q2019: FINANCIAL PERFORMANCE SNAPSHOT

UMW HOLDINGS BERHAD

(RM‘m) 1Q2019 1Q2018Y-o-Y

change4Q2018

Q-o-Q

change

Revenue from

Continuing

Operations2,774.8 2,415.3 14.9% 2,681.8 3.5%

PBT from

Continuing

Operations140.7 154.3 (8.8%) 103.9 35.3%

PATAMI from

Continuing

Operations85.7 95.0 (9.8%) 15.4 >100%

PATAMI/(LATAMI)

from Discontinued

operations0.8 (20.9) >100% (0.3) >100%

Consolidated

PATAMI86.5 74.1 16.8% 15.1 >100%

01

02

03

04

05


AUTOMOTIVE AND EQUIPMENT SEGMENTS IMPACTED BY

DEPRECIATION COST AND MARGINS, RESPECTIVELY

RM’m

UMW HOLDINGS BERHAD

(RM3m)

RM45m

RM126m

RM2m

RM42m

RM124m

M&E

Equipment

Automotive

1Q2019 1Q2018

Combined total PBT

1Q2019: RM168m

1Q2018: RM168m


GROUP’S DEBT POSITION

Debt-to-equity ratio

46%

As at 31 Mar 2019

50%

As at 31 Dec 2018

Gross debt-to-equity ratio

29%

As at 31 Mar 2019

30%

As at 31 Dec 2018

Net debt-to-equity ratio

25

STRATEGY

AND

CURRENT

PROSPECTS

UMW HOLDINGS BERHAD

26

AUTOMOTIVE STRATEGY – TOYOTA

UMW HOLDINGS BERHAD

To regain No. 1 position in non-National segment

Increase localisation – to improve cost and pricing competitiveness

Expand CKD model line-up

Focus on EEV models

Commenced operations in January 2019

Boost capacity and capability

▪ High automation

▪ 50% more efficient compared to Shah Alam plant

▪ Annual capacity – 50,000 units (1-shift operations)

Currently produces Toyota Vios and Toyota Yaris

BUKIT RAJA PLANT

27

AUTOMOTIVE – TOYOTA2019 – New model launches to drive sales

UMW HOLDINGS BERHAD

UMW

Toyota Motor

Intense competition –

wider choices for

consumers

2019 PROSPECTS

Additional depreciation

expenses from the new plant

Expand model line-up

FOREX

volatility

Stringent

loan

approvals

Challenges impacting sales and

profit margin1

• Slew of models were introduced in 2019 so far...

ALL-NEW VIOS

(January)

IMPROVED C-HR

(January)

ALL-NEW YARIS

(April)

IMPROVED AVANZA

(May)

• Launches in late 2018 – all-new Camry and all-new Rush

Higher localisation2

• Higher local content of Toyota model line-up - Vios and Yaris

local content is c. 80%

3 Cost optimisation

• High automation and better efficiency in Bukit Raja plant

soften impact of depreciation

75,000 units

(+13% Y-o-Y)

2019

sales target

28

AUTOMOTIVE – PERODUALeverage on excellent brand perception to penetrate new model segments

UMW HOLDINGS BERHAD

UMW

Toyota Motor

Affordable

Quality entry-level

vehicles

Improve model offering in popular segments

Strong

track

record

Strong

support

from

partner

1

• Aruz was introduced in January 2019, with 9,800 units

delivered as at April.

• Perodua targets to sell 30,000 units of Aruz in 2019

Perodua continues to dominate the

Malaysian market

ARUZ

(January)

231,000 units

(+2% Y-o-Y)

2019

sales target

2019 PROSPECTS

29

EQUIPMENT STRATEGY

▪ Reinforcing our partnership with

Komatsu

▪ Penetrate into new technology-driven

solutions such as Smart Construction

Heavy Equipment

▪ To be a total solutions provider

▪ Leveraging on Internet of Things (IoT)

▪ Expanding fleet management / rental

business


Strengthening partnership and innovate new value-

added solutions and services

UMW HOLDINGS BERHAD

30

EQUIPMENT2019 – Reinforcing market position in the urbanised sectors

UMW HOLDINGS BERHAD

HEAVY EQUIPMENT INDUSTRIAL EQUIPMENT

Opportunities in the domestic market1

• Continuation/revival of mega infrastructure

projects such as:

o Pan Borneo Highway Sabah

o Gemas-JB electrified rail double

tracking

o LRT 3 / MRT 2

o East Coast Rail Line (ECRL)

o Bandar Malaysia project

Venture into the leasing business

model for Malaysia and Singapore5

Further expansion into the leasing

business model1

• Companies are shifting to the asset-light

model and prefer to lease the equipment

rather than outright purchase

• Better margins

• Good secondary market for industrial

equipment

Ride on the urbanisation of Vietnam2

• Vietnam is slated to be the next high-

performing economy and is a major

beneficiary of the US-China trade war –

presents opportunity to tap into the

manufacturing and e-commerce sector

Wider product line-up3

Papua New Guinea to contribute

higher from gold mining and

construction sectors

2

First to offer 5-years/10,000 hours

warranty (for PC210 only)4

31

M&E STRATEGY

Further expansion into high-value / advanced manufacturing

▪ Plant expansion and

modernisation initiatives for

KYB-UMW

▪ Improve synergies to increase

localisation

▪ Expansion of products and

services

1To expand automotive

components business

▪ Optimising aerospace

manufacturing capabilities

▪ Diversify into non-aerospace

related projects

Explore opportunities in

the HVM space2

▪ Entry into new markets in

ASEANExpansion of lubricants

business3

UMW HOLDINGS BERHAD

32

MANUFACTURING & ENGINEERING2019 - Increase production of fan cases and shock absorbers

UMW HOLDINGS BERHAD

Further ramping up production of fan

cases01

02

▪ The production of fan cases is expected to

double in 2019

▪ Losses at UMW Aerospace is expected to

narrow with higher delivery; profitable in 2020

Improving demand for shock absorbers

▪ To increase production to cater to strong

demand from OEM and REM segments

▪ Commencement of plant expansion and

modernisation initiatives to increase

capacity and efficiency

03Grow lubricants business

▪ Focusing on home-grown GRANTT lubricants

33

UNLOCKING VALUE OF OUR ASSETS

Will be developed into a High-Value Manufacturing Park – by clusters

Signed MOU with MATRADE and Invest Selangor to promote land

UMW Aerospace is the pioneer tenant taking up 24 acres

Two other Malaysian companies bought 7 acres of land

There has been strong interest with several deals in the pipeline

UMW’S operations in Shah Alam to move to serendah within the next few years

861 acres of land in Serendah

UMW HOLDINGS BERHAD


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.

S. Vikneshwaran

General Manager

Investor, Media Relations & Sustainability

Email: [email protected]

Telephone: +603 20252104

THANK YOU

Roza Shahnaz Omar

Director, Group Strategy

UMW Corporation Sdn. Bhd.

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