Beyond Boundaries UMW Holdings Berhad Corporate Presentation - PowerPoint PPT Presentation

Beyond Boundaries UMW Holdings Berhad Corporate Presentation September 2018 1 UMW HOLDINGS BERHAD

Introduction 2 UMW HOLDINGS BERHAD

OUR JOURNEY Enhancing our capabilities Laying the building blocks for excellence Founded in 1917 Equipment Distribution Automotive Assembly Aerospace >50 years with Komatsu Bicycle repair shop >36 years with Toyota >50 years with TICO >25 years with Daihatsu Fan Case Manufacturer for Rolls-Royce Tier 1 supplier 3 UMW HOLDINGS BERHAD UMW HOLDINGS BERHAD

OUR SHAREHOLDERS As at 28 th September 2018 PNB ▪ Permodalan Nasional Berhad & PNB Managed Unit Trust Funds, 58.42% 58.42% RM 5.9b EPF Foreign Shareholders 28/09/2018 Market Capitalisation ▪ ▪ Employees Provident Fund Board, Foreign Shareholders, 10.81% 10.57% 10.57% 10.81% 13.84% 6.36% KWAP Other Local Shareholders ▪ ▪ Other Local Shareholders, 13.84% Kumpulan Wang Persaraan (Diperbadankan), 6.36% 4 UMW HOLDINGS BERHAD UMW HOLDINGS BERHAD

OVERVIEW OF OUR BUSINESSES M&E Automotive Equipment 01 02 03 • • Manufacture • Blending & Distribution distribution • Assembly • Trading of lubricants • Distribution • Leasing • Manufacture • Sales & • of After-sales service automotive service components • Manufacture of fan case Others 04 Oil & Gas - Unlisted • Manufacture of OCTG and Line pipes • Land rigs • Trading 5 UMW HOLDINGS BERHAD UMW HOLDINGS BERHAD

INTERNATIONAL PRESENCE 10 countries Automotive Equipment Manufacturing & Engineering Myanmar Oil & Gas China Vietnam 8,346 Malaysia ▪ Employees Papua New Guinea AA2 Singapore Australia ▪ RAM Indonesia ▪ Credit Rating Oman India 6 UMW HOLDINGS BERHAD UMW HOLDINGS BERHAD

Our Automotive business 7 UMW HOLDINGS BERHAD

UMW AUTOMOTIVE SEGMENT 51% 38% Investment holding, Investment holding and UMW Toyota Motor Perusahaan Otomobil Kedua importation and distribution provision of management and Sdn. Bhd.* of Toyota vehicles and Sdn. Bhd.** administrative services related parts Marketing and distribution of motor Perodua Sales 100% vehicles, related spare parts and Sdn. Bhd. other related activities 49% Investment holding and Perodua Auto provision of management and 100% Assembly Services Corporation Sdn. Bhd.*** Assembler of administrative services Sdn. Bhd. vehicles 51% Manufacturer and assembler Perodua Manufacturing 100% Automotive Industries Manufacturer and of motor vehicles and other 49% Sdn. Bhd. supplier of exhaust related activities Sdn. Bhd. systems 51% Manufacturer and assembler Perodua Global Manufacturing of motor vehicles and other 65% Toyota Boshoku 49% Manufacturer Sdn. Bhd. related activities UMW Sdn. Bhd. of car seats 49% Manufacturer and dealer in Perodua Engine Manufacturing component parts including 51% Sales and service of engines, couplings and 30% UMW Toyotsu Motors Sdn. Bhd. transmission components Toyota and Lexus Sdn. Bhd. vehicles and parts 30% Manufacturer of complete door Ingress Technologies assemblies and press parts 30% Hire purchase Toyota Capital Malaysia Sdn. Bhd. financing of Toyota Sdn. Bhd. customers 51% Daihatsu Motor Co., Ltd 49% Manufacturer of engine and engine Daihatsu Perodua Engine components for Energy Efficient Manufacturing Sdn. Bhd. Vehicles * 39% Toyota Motor Corporation 4.2% Mitsui & Co., Ltd *** 41% Daihatsu Motor Co., Ltd ** 20% Daihatsu Motor Co., Ltd **** 10% Toyota Tsusho Corporation 2.8% Mitsui & Co., ( Asia Pacific) Pte Ltd 6% Mitsui Co., Ltd 20% MBM Resources Bhd 8 UMW HOLDINGS BERHAD 5% Daihatsu (Malaysia) Sdn Bhd 4% Mitsui & Co., ( Asia Pacific) Pte Ltd 10% PNB Equity Resource Corporation Sdn Bhd

TOTAL INDUSTRY VOLUME (TIV) Total Industry Volume (“TIV”) – Unit Sales LHS TIV % Change Over Previous Year RHS MAA 2018 1,200,000 12.5% 12.7% TIV forecast 15.0% 4.6% 4.5% 1.6% 585,000 units -0.8% 0.0% -2.0% 5.0% 1,000,000 -5.0% -13.0% -0.6% 800,000 -15.0% 666,465 666,674 655,793 627,753 605,156 600,123 580,124 576,635 -25.0% 548,115 536,905 600,000 -35.0% 423,730 400,000 -45.0% -55.0% 200,000 -65.0% 0 -75.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 8M18 Source: Malaysian Automotive Association • Lower sales in 2017 were mainly due to weak consumer sentiment and stringent lending guidelines imposed by the financial institutions. • TIV stood at 423,730 units in the first eight months of 2018. MAA revised its TIV forecast for 2018 to 585,000 units (+1.5% growth) from 590,000 units previously. 9 UMW HOLDINGS BERHAD UMW HOLDINGS BERHAD

LEXUS & TOYOTA UMW Toyota Motor Market Share Of TIV RHS UMW Toyota Motor Unit Sales LHS UMWT 200,000 18.6% 20.0% 2018 17.0% 18.0% 15.6% sales target 15.3% 15.2% 14.8% 16.0% 14.4% 14.1% 70,000 units 150,000 14.0% 12.2% 11.2% 12.0% 106,622 103,636 101,839 95,861 92,521 91,990 100,000 88,662 10.0% 82,089 70,445 8.0% 65,110 50,434 6.0% 50,000 4.0% 2.0% 0 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 8M18 Source: Malaysian Automotive Association • Distributes 6 CKD and 7 CBU Toyota models. Lexus models are all CBU. • Top selling Toyota models in 2017 – Vios (35%) and Hilux (27%). • Importation of CBU cars and CKD components are transacted in US Dollar. • The all-new models launched in 2018 – Toyota Harrier (January), Toyota C-HR (March) and Lexus LS 500 (March). 10 UMW HOLDINGS BERHAD UMW HOLDINGS BERHAD

PERODUA Perodua Market Share Of TIV RHS Perodua Motor Unit Sales LHS Perodua 350,000 40.0% 35.7% 35.5% 2018 32.0% 35.0% sales target 300,000 31.2% 31.1% 30.5% 30.0% 29.9% 29.3% 209,000 units 30.0% 250,000 213,307 207,110 204,887 25.0% 196,071 195,579 188,641 200,000 179,989 167,393 166,736 158,732 20.0% 150,000 15.0% 100,000 10.0% 50,000 5.0% 0 0.0% 2008 2009 2010 2011 2013 2014 2015 2016 2017 8M18 Source: Malaysian Automotive Association • In 2017, Perodua maintained its No. 1 position in overall market share since 2006 (12 th consecutive year). • Currently exporting to six countries - Indonesia, Singapore, Mauritius, Fiji, Sri Lanka and Brunei. • The all-new Perodua Myvi was launched on 16 November 2017. • Target for 2018 is 209,000 units (+2% growth). 11 UMW HOLDINGS BERHAD UMW HOLDINGS BERHAD

8M18: UMW GROUP’S MARKET SHARE Units & Market Share (%) • UMW Group sold 209,166 units in 8M18 with a market 2017 204,887 share of 49% (2017 – 48%) 35.5% 2017 70,445 37.5% 12.2% 11.9% Perodua UMW Toyota 158,732 50,434 Other Carmakers’ Sales and Market Share Brand 8M18 2017 Units Market Units Market 50.6% Share % Share % Others Honda 74,951 17.7 109,511 19.0 214,564 Proton 44,709 10.6 70,991 12.3 Nissan 18,730 4.4 27,154 4.7 Mazda 9,844 2.3 9,730 1.7 Others 66,330 15.6 75,676 13.1 2017 301,303 Total TIV 423,730 576,635 52.3% Source: Malaysian Automotive Association 12 UMW HOLDINGS BERHAD UMW HOLDINGS BERHAD

Our Equipment business 13 UMW HOLDINGS BERHAD

EQUIPMENT SEGMENT INDUSTRIAL EQUIPMENT HEAVY EQUIPMENT Material handling Marine & Power 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 beverage, material handling and logistics ▪ Industrial and marine power solutions 14 UMW HOLDINGS BERHAD

Heavy Equipment Malaysia Myanmar Since 1965 Singapore Papua New Guinea Brunei • We have the largest equipment servicing fleet in Malaysia and can therefore provide extensive after-sales and maintenance services to our clients wherever they may be. Since 1979 Since 1996 Delivered 38 units of Rosenbauer Panther Airport Fire Fighting Vehicles to MAHB from 2010-2015 15 UMW HOLDINGS BERHAD

Industrial Equipment Material Handling Toyota Forklift Franchise Malaysia China : Shanghai, Singapore Zhejiang Since 1967 Vietnam Brunei 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 10 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. 16 UMW HOLDINGS BERHAD

Industrial Equipment Marine & Power Honda CompAir Power Products Air Compressor Ingersoll Rand Mitsubishi Centrifugal Marine Engines Compressor GE Mitsubishi Reciprocating Gen-sets Compressor 17 UMW HOLDINGS BERHAD