Investor Presentaiton
Business characteristics
■High volume, low margin business with significant footprint across Asia; strong partnerships
Cyclical business
Business dependent on commodity
cycle (coal, O&G) for Industrials and
model cycle for Motors
BMW sales expected to
pick up with popular
new models
Industrial benefiting
from pick up in coal
prices
BMW X3 2018
22%
Coal % of world energy
consumption by 2040(1)
Broad footprint across Asia
•
Pacific
Large network and
strong "know how"
in the Asia Pacific
region
Diversified
operational footprint
with exposure to
emerging markets
and developed
economies
Proxy to key macro trends i.e.
growing Asian affluence (BMW),
demographics (Healthcare) and
commodity upcycle (Industrial)
Strictly Private & Confidential
(1) Source: Wood Mackenzie
High volume, low margin
business
SDB's business is characterized by high
unit sales and low trading margins
(~3%). However, if working capital is
managed well, cash flows are significant
and ROIC can be high.
¬
Sime
Darby
B
H
Capital requirement not
strenuous
Undemanding capex requirements which
largely revolve around showroom
upgrades and warehouses
12
Sime
Darby
Long-standing partnership
with premium brands
Partner of choice for MNCs who wish to
expand in Asia
CAT 1929
.
•
B
M
SINCE
1972
Healthcare a hidden gem
RAMSAY
SIME DARBY
HEALTH CARE
.
Premium hospitals in
Indonesia and Malaysia
tap into growing
affluence in the region
Significant expansion opportunities
in other Asian markets, leveraging
on brand
Asian healthcare business supported
by strong valuations
Low gearing, room for
expansion
19.6%
Ample debt headroom
for strategic
Debt to equity ratio expansion and M&AsView entire presentation