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COMPANY PROFILE

Sime Darby Berhad

REFERENCE CODE: 5C1EB837-8775-459E-B821-AC170A84896A
PUBLICATION DATE: 8 May 2015 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.

Sime Darby Berhad
TABLE OF CONTENTS

TABLE OF CONTENTS
Company Overview..............................................................................................3
Key Facts...............................................................................................................3
Business Description...........................................................................................4
History...................................................................................................................6
Key Employees...................................................................................................10
Key Employee Biographies................................................................................12
Major Products and Services............................................................................20
Revenue Analysis...............................................................................................22
SWOT Analysis...................................................................................................24
Top Competitors.................................................................................................30
Company View.....................................................................................................31
Locations and Subsidiaries...............................................................................36

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Sime Darby Berhad
Company Overview

COMPANY OVERVIEW
Sime Darby Berhad (Sime Darby or ‘the company’) is a diversified company with business interests in plantations, property, motors, industrial equipment, energy and utilities, and healthcare. The company primarily operates in the South East Asia region. It is headquartered in Kuala Lumpur,
Malaysia and employs 103,507 people as on June 30, 2014.
The company recorded revenues of MYR43,908 million ($13,506.1 million) during the financial year ended June 2014 (FY2014), a decrease of 4.8% compared to FY2013. The operating profit of the company was MYR4,118.6 million ($1,266.9 million) in FY2014, a decrease of 8.3% compared to
FY2013. The net profit of the company was MYR3,520.5 million ($1,082.9 million) in FY2014, a decrease of 8.1% compared to FY2013.

KEY FACTS
Head Office

Sime Darby Berhad
19th Floor
Wisma Sime Darby
Jalan Raja Laut
Kuala Lumpur 50350
MYS

Phone

603 2691 4122

Fax

603 2719 0044

Web Address

http://www.simedarby.com

Revenue / turnover 43,908.0
(MYR Mn)
Financial Year End

June

Employees

103,507

Bursa Malaysia
Securities Berhad
Ticker

SIME

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Sime Darby Berhad
Business Description

BUSINESS DESCRIPTION
Sime Darby is a Malaysia-based diversified company engaged in business activities such as the distribution of automobiles and heavy equipment; oil, palm and rubber plantations; production of edible oils; residential and commercial property development, and the construction and operation of power plants. The company has operations in more than 30 countries across the globe.
The company operates through six business segments: motors, industrial, plantation, property, energy and utilities, and others.
The motor segment operates through Sime Darby Motors, which is engaged in the import, assembly, distribution and retail of vehicles. The segment primarily operates in Malaysia, Singapore, China,
Hong Kong, Macau, Australia, New Zealand, Thailand, Vietnam and Taiwan. The segment retails various brands, including BMW, Mini, Rolls-Royce, Porsche, Jaguar, Lamborghini, Hyundai, Land
Rover, Ford and Peugeot.
The segment also operates the Sime Darby Fleet Services, an Australia-based four-wheel drive
(4WD) bus rental and mechanical services provider for the industry, government and regional tourist market in Western Australia, Queensland and New South Wales. In terms of assembly operations, the segment assembles various Hyundai passenger and commercial vehicles as well as BMW, MINI and Mazda vehicles passenger vehicles through its subsidiary, Inokom in Kulim, Kedah. Sime Darby
Motors also assembles Kia in Taiwan. It also represents the Hertz and Thrifty vehicle rental and leasing franchise in Malaysia and Singapore and the Corefleet commercial vehicle rental and leasing business in Australia.
The industrial segment, operating through Sime Darby Industrial subsidiary, is engaged in the distribution of heavy equipment in Malaysia and the Asia Pacific region. The segment offers a comprehensive list of heavy equipment and services, ranging from the sales of new machines, engines or used equipment to rental through its chain of Cat Rental Stores. It offers equipment and product support services for markets such as plantation, property, mining, marine, forestry, construction, port sectors and power systems. The segment is the third largest Caterpillar dealers and operates Caterpillar dealership network in the Asia-Pacific region, with over 140 branches in 10 countries. The segment is also involved in equipment manufacture under license and after sales support. Sime Darby Industrial carries other brands of associated heavy equipment, including Bucyrus,
Case New Holland, Kubota, Terberg, Jacobson, Perkins and Omega.
The plantations segment's key activities include upstream, downstream, foods and beverages, and research and development. Its upstream operations include the development of oil palm plantations, cultivation of oil palm, management of estates, and milling of fresh fruit bunches (FFB) for crude palm oil (CPO) and crude palm kernel oil (CPKO). Its downstream business encompasses the manufacture and distribution of oils and fats products to biodiesels, oleochemicals, and nutraceuticals.
The segment also manufactures and markets a range of fast moving consumer goods (FMCG) products such as cooking oil, juices and cooking sauces to the Malaysian market. The company

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Sime Darby Berhad
Business Description

planted 525,290 hectares with oil palms and 8,749 hectares with rubber. It has a total of 209 estates and 57 strategic operating units (SOUs) in Malaysia and Indonesia. During 2014, the company produced 9,418,320 metric tons (MT) of FFB crop and processed a total of 10,523,535 MT of FFB.
Additionally, the company also produced 2,300,810 MT of CPO and 522,130 MT of CPKO.
Sime Darby operates its property segment through Sime Darby Property (SDP), which is engaged in property development, asset management, hospitality and leisure. The company has operations in Malaysia, Singapore, Australia, Vietnam and the UK.
The energy and utilities segment operates through Sime Darby Energy & Utilities. Its core businesses include engineering and technical services, trading services, ports and logistics and water management. Represented by Sime Darby Offshore Engineering (SDOE) and SD Joy Industries
(SD Joy), the engineering and technical services business unit of Sime Darby has direct presence in Malaysia, Singapore and Thailand. SDOE is involved in system integration and sales of engineering products and services, while SD Joy offers the design, fabrication and installation of standard and custom engineered products for oil and gas, petroleum, petro-chemical, chemical and power generation industries.
The company's trading services unit Mecomb provides various solutions for air and fluid handling, environmental controls, life science, building mechanical and electrical (M&E) services and facilities automation. It has operations in Malaysia and Thailand. The company operates four ports; a seaport handling general, bulk and container cargoes in the Bohai Bay, Weifang, and three river ports handling mostly coal/ coke, bulk and general cargoes along the Grand Canal in Jining. The water management business unit involves the distribution, management and treatment of water supply and sewage services. The unit is represented by Weifang Sime Darby Water Management (Weifang Water) in the province of Shandong, China.
Additionally, Sime Darby is engaged in insurance broking and agency services, healthcare services, and consumer products business. The company's subsidiary Sime Darby Lockton provides risk management, insurance and takaful solutions. Sime Darby Lockton is licensed and regulated by
Bank Negara Malaysia. The company also owns a 30% stake in Tesco Stores (Malaysia). Sime
Darby Healthcare comprises Sime Darby Medical Centre Subang Jaya (SDMC SJ), a tertiary care
393-bed hospital; Ara Damansara medical centre and ParkCity medical center in Malaysia. The company operates RS Premier Jantinegara, RS Premier Bintaro and RS Premier Surabaya in
Indonesia.

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Sime Darby Berhad
History

HISTORY
Sime Darby was established in 1910 to manage 500 acres of plantations land in Malacca (Malaysia).
The company took its name from its two founders, William Middleton Sime and Henry Darby. In
1915, Sime Darby set up its branch offices in Singapore and London to start the company's general trading services and support its rubber operations.
By 1954, the company owned 80,000 acres of rubber plantations and operated a total of 18 branch offices in Singapore, Malaysia and Brunei. During 1960s, the company diversified some of its plantations into palm oil and cocoa production. Sime Darby was re-incorporated in Malaysia in 1978 with its headquarters in Kuala Lumpur.
The company commenced trading on the Kuala Lumpur Stock Exchange in 1980. During the same year, Sime Darby established regional offices in the Philippines, where it later acquired BF Goodrich
Pilipinas to include in its tire business. In 1986, the company acquired a 51% stake in tire manufacturer, Dunlop Malaysian Industries. Sime Darby acquired control of United Malayan Banking
(breaking it up into Sime Bank and SimeSecurities) in 1996 for expanding its portfolio.
Sime Darby and Tesco signed a joint agreement to set up a chain of hypermarkets in Malaysia in
2000. In 2002, the company won a contract to lead a consortium of companies to build the Bakun
Hydroelectric Project. During the same year, Sime Darby signed an agreement with Finnish energy group, Fortum, to purchase Laem Chabang Power, a 103 MW electricity and 50t/h steam combined cycle gas turbine power plant located in Thailand.
During 2003, the company acquired a 50% interest in Island Power Holdings, a Singapore-based company involved in developing a 715-megawatt combined cycle gas turbine power plant located on Jurong Island in Singapore. The company raised its stake by 15% and 20% in Port Dickson Power and JanaUrus, respectively, in 2004.
The company's subsidiary, Sime Darby Motors, sold its 90% stake in Yunna Sime Winner Motor
Services, the company's auto service center unit in China, in 2006. In the same year, Sime
Engineering Services, a subsidiary of the company, secured a contract from Qatar Petroleum and from Petronas Carigali.
In 2007, Sime Plantations, a subsidiary of Sime Darby, and BioX Carbon, part of the BioX Group, signed a business collaboration agreement to jointly develop Clean Development Mechanism projects at the palm oil mills of Sime Darby in Malaysia. In the same year, the shareholders of Golden Hope
Plantations, Kumpulan Guthrie and Sime Darby approved the proposed merger of Synergy Drive.
In addition, Sime Darby launched an initiative to build model townships for low and middle-income earners in several states.
During 2008, Sime Darby Property launched the Royale Palms Villas, 36 units of guarded community villas in Putra Heights, Selangor. In the same year, Sime Darby opened an office in Qatar to expand

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Sime Darby Berhad
History

its oil and gas operations in the Middle East region. Also in 2008, the company planned to strengthen its position in the palm oil downstream business in South East Asia by building a new RM330 million
($93.3 million) refinery in North Port, Port Klang.
Further in 2008, Tractors Malaysia, a wholly owned subsidiary of Sime Darby, opened a new branch in Butterworth, Malaysia and also set up a one-stop Cat Rental Store to expand the business opportunities in this area. Further in the same year, the company launched a new business unit,
Sime Darby Healthcare. Additionally, Sime Darby received a contract from Petronas Carigali for the construction of offshore oil and gas processing platforms. Subsequently, the company entered the downstream palm oil business in China, by setting up a joint venture company with Dongguan
Sinograin Oils & Grains.
Sime Darby Water Resources, a subsidiary of Sime Darby, launched its pilot groundwater project in its Cluny/Bedford estates in Perak, Malaysia, in 2009. In the same year, Sime Darby Plantation launched its Mangrove Research Centre, the first center for mangrove research in Malaysia. Later in the same year, Sime Darby Property opened its Putra Heights Interchange.
Further in 2009, Sime Darby Plantation signed its first African plantation deal with the Government of the Republic of Liberia. Later in 2009, Unimills, the European subsidiary of Sime Darby, acquired a lecithin production facility, previously owned by IOI Loders Croklaan.
The company launched Sime Darby Innovation Centre Europe (ICE) in Zwijndrecht, the Netherlands, in 2010.
In 2011, the company established a multi feedstock vegetable oil processing plant in Europe.
Subsequently, Sime Darby Eastern Investments acquired 100% of the issued shares of Haynes
Mechanical, AC Haynes Investments and DG Nominees. Later that year, Sime Darby Engineering entered into two separate non-binding memoranda of understanding for the proposed disposal of its assets in the oil and gas business unit with Petroliam Nasional Bhd (Petronas) and Malaysia
Marine and Heavy Engineering Holdings (MHB).
Also in 2011, Sime Darby Motors, the automotive arm of Sime Darby, opened its 10th BMW 4S
(sales, spare parts and service, and systems) center in China. Further in the year, the company acquired a stake in Eastern & Oriental. Subsequently, the industrial division of Sime Darby acquired a portion of the Bucyrus distribution business from Caterpillar for $360 million.
During 2012, the company opened Sime Darby Medical Centre, a hospital focusing on heart, brain, spine and joint cases at Ara Damansara. In the same year, Sime Darby Property formed a joint venture with shopping mall developer CapitaMalls Asia to develop a shopping mall in Klang Valley,
Malaysia.
Later in 2012, the company announced plans to expand its port operations in Weifang, China.
Subsequently, the company in partnership with S P Setia and the Employees Provident Fund (EPF) acquired London’s Battersea Power Station for £400 million (approximately $622million).

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Sime Darby Berhad
History

In 2013, Sime Darby through its wholly owned subsidiary, Sime Darby Global, received approval from Malaysia's Securities Commission for its proposed $1.5 billion equivalent multicurrency sukuk issuance programme (Sukuk Programme).
In the same year, Terberg Tractors Malaysia (TTM), a joint venture between Terberg and Sime
Darby Industrial was awarded a contract worth MYR10 million ($3.2 million) by Kontena Nasional to provide 40 units of the YT220 MKII Terberg Terminal Tractors. In the same year, Sime Darby and
Ramsay Health Care entered into a joint venture to expand their healthcare businesses.
During the same year, Sime Darby Industrial was awarded contracts worth up to MYR80 million
($25.9 million) with PSA Singapore Terminals (PSA), the world's largest container transhipment hub.
In the same year, the company unveiled Radia, an integrated development in Bukit Jelutong. In the same year, Ramsay Sime Darby Health Care (RSDHC) opened its first hospital- ParkCity Medical
Centre (PMC), located in Desa Park City.
In the same year, the company signed agreements to take over the existing distributor of BMW and
MINI in Vietnam to expand its presence. In the same year, Ford Motor Company announced that it would begin assembly of the Ford Transit, in collaboration with Sime Darby Auto Connexion (SDAC), at Sime Darby's Inokom facility in Kulim, Kedah. During the same year, Sime Darby boosted its presence in the Asia Pacific region with its entry into Taiwan through its appointment as the official, sole and exclusive assembler of Kia passenger vehicles in the country.
During the same year, the company has signed agreements to clinch its first BMW dealership in
Australia, making its entry into the luxury market in Australia where it already has a presence through other marques.
In February 2014, Jaguar Land Rover Limited (UK) agreed to appoint Jaguar Land Rover (Malaysia), a joint venture between Sime Darby Motors and SISMA Auto, as its exclusive importer for Malaysia.
During April 2014, Sime Darby planned to take a stake in an industrial biotechnology company,
Verdezyne, as part of an initiative to pursue strategic growth areas for its plantation business. Sime
Darby Renewables, a new unit under Sime Darby Plantation, will spearhead this initiative which essentially focuses on converting traditional and non-traditional palm-based commodities into products of higher value. In the same month, Sime Darby agreed to sell its Malaysian power business under
Port Dickson Power Berhad (PDP) to Malakoff Corporation Berhad.
In May 2014, Tractors Malaysia, the Caterpillar dealership under Sime Darby Industrial, secured a
MYR7 million ($2.3 million) heavy equipment deal with the mining sector, maintaining its pole position in Malaysia's heavy equipment industry.
During June 2014, Sime Darby entered into an agreement with B.Grimm Power for the sale of its power business in Thailand for a total consideration of RM522.9 million ($162.9 million).

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Sime Darby Berhad
History

In March 2015, Sime Darby Plantation, the plantation division of Sime Darby Berhad, acquired New
Britain Palm Oil Limited (NBPOL). In April 2015, Ramsay Sime Darby Health Care received a contract from Maldivian investment company Tree Top Health Private Limited, to manage a private hospital in the island nation of Maldives.
During April 2015, Sime Darby launched Bumiputera Vendor Development Programme, a programme designed to assist specific Bumiputera companies to develop their capabilities in partnership with the diversified multinational company.
In the same month, Sime Darby Offshore Engineering (SDOE) partnered with Gas Malaysia Berhad
(Gas Malaysia) to pursue business opportunities in the Bio-Compressed Natural Gas (Bio-CNG) value chain with the setting up of a joint venture company known as Sime Darby Gas Malaysia
Bio-CNG Sdn Bhd (JVCo).

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Sime Darby Berhad
Key Employees

KEY EMPLOYEES
Name

Job Title

Board

Mohd Bakke Salleh

President and Group Chief
Executive

Executive Board

Abdul Ghani Othman

Chairman

Non Executive Board

822000 MYR

Hamad Kama Piah Che
Othman

Deputy Chairman

Non Executive Board

455000 MYR

Samsudin Osman

Director

Non Executive Board

355000 MYR

Wan Abdul Aziz Wan
Abdullah

Director

Non Executive Board

335000 MYR

Wan Mohd Zahid Mohd
Noordin

Director

Non Executive Board

392000 MYR

Hamid Bugo

Director

Non Executive Board

495000 MYR

Yusof Basiran

Director

Non Executive Board

519000 MYR

Zaiton Mohd Hassan

Director

Non Executive Board

495000 MYR

Lim Haw Kuang

Director

Non Executive Board

750000 MYR

Henry Sackville Barlow

Director

Non Executive Board

585000 MYR

Azmi Mohd Ali

Director

Non Executive Board

475000 MYR

Muhamad Fuad Abdullah

Director

Non Executive Board

410000 MYR

Rohana Tan Sri Mahmood

Director

Non Executive Board

7000 MYR

Abd Wahab Maskan

Group Chief Operating Officer and Senior Management
Managing Director, Property Division

Tong Poh Keow

Group Chief Financial Officer

Senior Management

Zulkifli Zainal Abidin

Executive Vice President, Group
Human Resources

Senior Management

Philip Kunjappy

Executive Vice President, Group
Corporate Services

Senior Management

Simon Lord

Executive Vice President, Group
Sustainability and Quality
Management

Senior Management

Franki Anthony Dass

Executive Vice President, Plantation Senior Management
Division

Scott William Cameron

Executive Vice President, Industrial Senior Management
Division

Lawrence Lee Cheow Hock

Executive Vice President, Motors
Division

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Compensation
7088000 MYR

Senior Management

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Sime Darby Berhad
Key Employees

Name

Job Title

Alan Hamzah Sendut

Executive Vice President, Energy
Senior Management and Utilities Division (Non-China) and Group Strategy and Innovation

Timothy Lee Chi Tim

Executive Vice President, Energy and Utilities Division - China
Operations

Senior Management

Glenn Charles Daly

Group Head, Risk Management

Senior Management

John Edward Arkosi

Group Head, Group Compliance and Senior Management
Group Corporate Assurance

Choo Suit Mae

General Counsel, Legal

Leela Barrock

Group Head, Communications and Senior Management
Corporate Affairs

Norzilah Megawati Abdul
Rahman

Group Secretary

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Board

Compensation

Senior Management

Senior Management

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Sime Darby Berhad
Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES
Mohd Bakke Salleh
Board: Executive Board
Job Title: President and Group Chief Executive
Since: 2010
Age: 60
Mr. Salleh has been the President and Group Chief Executive at Sime Darby since 2010. He is also a Board Member at Eastern & Oriental, Sime Darby Property and Yayasan Sime. Prior to that, Mr.
Salleh was the Acting President and Group Chief Executive at Sime Darby. He was the Group
President and Chief Executive Officer at Felda Global Ventures Holdings (formerly known as Felda
Global Ventures Holdings).

Abdul Ghani Othman
Board: Non Executive Board
Job Title: Chairman
Age: 67
Mr. Othman currently serves as the Chairman at Sime Darby. He has been a Director at Sime Darby since 2013. He began his career in 1974 as a Lecturer at the Faculty of Economics, University of
Malaya and later served as the Dean for the Faculty of Economics and Administration, University of Malaya from 1980 to 1984. Mr. Othman was appointed as a Member of the Senate in 1984 and subsequently was elected as a Member of Parliament for Ledang in 1986.

Hamad Kama Piah Che Othman
Board: Non Executive Board
Job Title: Deputy Chairman
Age: 63
Mr. Othman currently serves as the Deputy Chairman at Sime Darby. He has been a Director at
Sime Darby since 2010. Currently, he is also the President and Group Chief Executive at Permodalan
Nasional and a Director at Amanah Saham Nasional, Pelaburan Hartanah Nasional, Amanah Mutual,
Chemical Company of Malaysia, Sime Darby Property and several other private limited companies.

Samsudin Osman
Board: Non Executive Board
Job Title: Director

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Key Employee Biographies

Since: 2008
Age: 67
Mr. Osman has been a Director at Sime Darby since 2008. He previously served as the Chairman at the company. Mr. Osman is currently the Chairman at the Employees Provident Fund (EPF)
Board, EPF Investment Panel, Universiti Utara Malaysia and BIMB Holdings. He was the President at Perbadanan Putrajaya from 2004 to 2012 and the Chief Secretary to the Malaysian Government from 2001 to 2006.

Wan Abdul Aziz Wan Abdullah
Board: Non Executive Board
Job Title: Director
Since: 2012
Age: 62
Mr. Abdullah has been a Director at Sime Darby since 2012. He began his career in 1975, as the
Assistant Director of the Economic Planning Unit in the Prime Minister's Department and was later promoted to the position of the Senior Assistant Director of Macro-economics in 1984, and subsequently to the position of the Senior Assistant Director, Human Resource Section and the
Director of Energy Section.

Wan Mohd Zahid Mohd Noordin
Board: Non Executive Board
Job Title: Director
Since: 2007
Age: 74
Mr. Noordin has been a Director at Sime Darby since 2007. He is currently the Chairman at Universiti
Teknologi MARA, Management and Science University and FEC Cables. Mr. Noordin is also a
Director at Amanah Saham Nasional, Perbadanan Usahawan Nasional, SP Setia, Yayasan Sime
Darby and Amanah Mutual.

Hamid Bugo
Board: Non Executive Board
Job Title: Director
Since: 2010
Age: 69
Mr. Bugo has been a Director at Sime Darby since 2010. Previously, he was an Administration
Manager at Malaysia LNG for three years. Mr. Bugo was appointed as the first General Manager at
Land Custody and Development Authority, Sarawak and moved on to become the Permanent

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Sime Darby Berhad
Key Employee Biographies

Secretary at the Ministry of Resource Planning and State Secretary of Sarawak until his retirement from the civil service in 2000.

Yusof Basiran
Board: Non Executive Board
Job Title: Director
Since: 2010
Age: 66
Mr. Basiran has been a Director at Sime Darby since 2010. Prior to joining the Palm Oil Research
Institute of Malaysia (PORIM) in 1979, he held the position of Rubber Technologist/Techno-Economist at the Rubber Research Institute (RRI)/Malaysian Rubber Research Development Board (MRRDB).

Zaiton Mohd Hassan
Board: Non Executive Board
Job Title: Director
Since: 2010
Age: 58
Ms. Hassan has been a Director at Sime Darby since 2010. She is the Chairman at the Private
Pension Administrator Malaysia. Ms. Hassan is also a Director at BIMB Holdings, Malaysian Industrial
Development Finance, Credit Guarantee Corporation Malaysia, Bank Islam Malaysia and Yayasan
Masjid Cina. She is also a Director at several other private limited companies.

Lim Haw Kuang
Board: Non Executive Board
Job Title: Director
Since: 2010
Age: 60
Mr. Kuang has been a Director at Sime Darby since 2010. He was appointed as the Executive
Chairman at Shell Companies in China in 2005. Mr. Kuang joined Shell in Malaysia in 1978 and has since served in various capacities in IT, Finance, Natural Gas, Exploration and Production, Oil
Products and Corporate Head Offices in different Shell operations.

Henry Sackville Barlow
Board: Non Executive Board
Job Title: Director
Since: 2007

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Key Employee Biographies

Age: 70
Mr. Barlow has been a Director at Sime Darby since 2007. He is currently a Director at HSBC Bank
Malaysia and The International and Commonwealth University of Malaysia. Mr. Barlow is also a
Member of the Board of Trustees at Badan Warisan Malaysia and a Director at several other private limited companies.

Azmi Mohd Ali
Board: Non Executive Board
Job Title: Director
Since: 2010
Age: 54
Mr. Ali has been a Director at Sime Darby since 2010. He is the Senior Partner at Azmi & Associates since 2000. Prior to this, Mr. Ali was a Partner at Hisham, Sobri and Kadir from 1995 to 2000. He started his career in Petroliam Nasional (PETRONAS) in 1984 and left PETRONAS' employment as the Head of Gas/New Ventures, Upstream Legal Department in 1990 to work in the lawfirm of T.
Tharu & Associates from 1990 to 1995.

Muhamad Fuad Abdullah
Board: Non Executive Board
Job Title: Director
Since: 2013
Age: 61
Mr. Abdullah has been a Director at Sime Darby since 2013. He began his career in 1977 as an
Electrical Engineer at the Malaysian Public Works Department (PWD). After spending six years in the technical area, Mr. Abdullah served as the Logistics Manager at Uniphone Sdn Bhd.

Rohana Tan Sri Mahmood
Board: Non Executive Board
Job Title: Director
Since: 2014
Age: 60
Ms. Mahmood has been a Director at Sime Darby since 2014. She is the Chairman and Founder at
RM Capital Partners & Associates Sdn Bhd, a Malaysian private equity fund. Ms. Mahmood is also a Board member at AMMB Holdings Berhad, AmInvestment Bank Berhad and Paramount Corporation
Berhad and Group. She was the Chairman and co-founder at Ethos Capital, a Malaysian private equity fund, since 2007.

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Key Employee Biographies

Abd Wahab Maskan
Board: Senior Management
Job Title: Group Chief Operating Officer and Managing Director, Property Division
Since: 2008
Age: 63
Mr. Maskan has been the Chief Operating Officer at Sime Darby since 2008. He has also been the
Managing Director at Sime Darby Property Berhad, a subsidiary of Sime Darby, since 2011. Mr.
Maskan was formerly the Group Chief Executive Officer at Kumpulan Guthrie and Golden Hope
Plantations. He has held various management and Board positions in companies in Malaysia, Europe and Asia, covering plantation, property, engineering and construction and manufacturing.

Tong Poh Keow
Board: Senior Management
Job Title: Group Chief Financial Officer
Since: 2008
Age: 59
Ms. Keow has been the Group Chief Financial Officer at Sime Darby since 2008. She was formerly the Head of Group Finance and Administration, and the Chief Finance Officer at Kumpulan Guthrie.
Ms. Keow joined the Kumpulan Guthrie in 1983 as an Accountant-cum-Assistant Company Secretary for Highlands & Lowlands before becoming the General Manager, Accounting and Financial Reporting and then the Group General Manager, Finance.

Zulkifli Zainal Abidin
Board: Senior Management
Job Title: Executive Vice President, Group Human Resources
Since: 2011
Age: 53
Mr. Abidin has been the Executive Vice President, Group Human Resources at Sime Darby since
2011. He began his career at Sime Darby Berhad in 1989 as the Head of Human Resource, Malaysia
Region until 1997. In 1999, Mr. Abidin joined Negara Properties as the Senior Manager, Human
Resource & Administration.

Philip Kunjappy
Board: Senior Management
Job Title: Executive Vice President, Group Corporate Services
Since: 2010
Age: 57

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Key Employee Biographies

Mr. Kunjappy has been the Executive Vice President, Group Corporate Services at Sime Darby since 2010. He began his career at Attlee, Edge & Lambert in the UK and subsequently joined
Pricewaterhouse in 1983. Mr. Kunjappy also served as the Finance Manager at Kuala Lumpur
Kepong, the Finance Director at Island & Peninsular and the Senior Executive Director, Oil & Fats
Subsidiaries at Felda Holdings.

Simon Lord
Board: Senior Management
Job Title: Executive Vice President, Group Sustainability and Quality Management
Since: 2015
Dr. Lord has been the Executive Vice President, Group Sustainability and Quality Management at
Sime Darby since 2015. Previously, he served as the Group Director for Sustainability at New Britain
Palm Oil Limited (NBPOL). Dr. Lord is currently an Executive Board member at Roundtable
Sustainable Palm Oil (RSPO), Director for Global Sustainability Associates and Board Trustee at
Orang-utan Land Trust.

Franki Anthony Dass
Board: Senior Management
Job Title: Executive Vice President, Plantation Division
Since: 2010
Age: 58
Mr. Dass has been the Executive Vice President, Plantation Division at Sime Darby since 2010. He was appointed as the Acting Executive Vice President, Plantation Division in 2010 prior to his present appointment. Mr. Dass started his career at Kumpulan Guthrie in 1980 as an Assistant Manager and has over 20 years of plantation experience.

Scott William Cameron
Board: Senior Management
Job Title: Executive Vice President, Industrial Division
Age: 56
Mr. Cameron currently serves as the Executive Vice President, Industrial Division at Sime Darby.
He began his career at Pricewaterhouse before joining Hastings Deering as the Finance Director in
1992. Mr. Cameron was formerly the Managing Director at Hastings Deering Group of Caterpillar
Dealerships which covers Queensland, Northern Territory, Papua New Guinea and Soloman Islands.

Lawrence Lee Cheow Hock

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Sime Darby Berhad
Key Employee Biographies

Board: Senior Management
Job Title: Executive Vice President, Motors Division
Age: 60
Mr. Hock currently serves as the Executive Vice President, Motors Division at Sime Darby. He was the Divisional Director at Kumpulan Sime Darby's (KSDB's) Motors Division before he assumed his present position. Mr. Lee was also the Managing Director of the subsidiaries within the Hyundai
Group of KSDB's Motors Division and had previously managed KSDB's Motors Division in Singapore,
Australia, New Zealand and China, including Hong Kong and Macau.

Alan Hamzah Sendut
Board: Senior Management
Job Title: Executive Vice President, Energy and Utilities Division (Non-China) and Group Strategy and Innovation
Since: 2015
Age: 54
Mr. Sendut has been the Executive Vice President, Energy and Utilities Division (Non-China) and
Group Strategy and Innovation at Sime Darby since April 2015. Previously, he served as the Executive
Vice President of Group Strategy and Business Development at the company. Mr. Sendut began his career at Pricewaterhouse, and had worked with several multinational companies in Malaysia before joining Kumpulan Sime Darby (KSDB) in 1996.

Timothy Lee Chi Tim
Board: Senior Management
Job Title: Executive Vice President, Energy and Utilities Division - China Operations
Since: 2011
Age: 49
Mr. Tim has been the Executive Vice President, Energy and Utilities Division - China Operations at
Sime Darby since 2011. He has over 19 years of operational experience in the ports and container terminal management industry in Hong Kong. Prior to joining Sime Darby, Mr. Lee was the Operations
Manager, Hong Kong Business Unit at Modern Terminals. He was formerly the Chairman at the Sea
Cargo Customer Liaison Group in 2010.

Glenn Charles Daly
Board: Senior Management
Job Title: Group Head, Risk Management
Since: 2011
Age: 51

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Key Employee Biographies

Mr. Daly has been the Group Head, Risk Management at Sime Darby since 2011. Prior to his current appointment, he was a Director at Deloitte, a Partner at Ernst & Young and a Principal at Ernst &
Young. Mr. Daly has financial management experience having worked previously for the Departments of Defense and Finance, as the Financial Controller of an engineering facility at Australian Defense
Industries (ADI) and as a Manager of Internal Audit at ADI's corporate headquarters.

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Sime Darby Berhad
Major Products and Services

MAJOR PRODUCTS AND SERVICES
Sime Darby is a diversified company with business interests in plantations, property, motors, industrial equipment, energy and utilities, and healthcare. The company's key products and services include the following:
Motors:
Import
Assembly
Distribution
Retail
Plantation:
Oil palm plantations
Cultivation of oil palm
Management of estates
Milling of fresh fruit bunches (FFB)
Crude palm kernel oil (CPKO)
Distribution of oils and fats product
Industrial:
Distribution of heavy equipment
Product support services
Sale of new machines and engines
Sale of used equipment
Equipment for rental
Equipment manufacture under license
After sales support
Equipment leasing
Property:
Property development
Property investment
Hospitality and leisure
Energy and utilities:
Engineering services
Ports and logistics
Water management

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Sime Darby Berhad
Major Products and Services

Healthcare:
Healthcare services
Private hospitals
Others:
Consumer products
Insurance broking and agency
Risk management
Insurance
Takaful solutions

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Sime Darby Berhad
Revenue Analysis

REVENUE ANALYSIS
Overview
The company recorded revenues of MYR43,908 million ($13,506.1 million) during the financial year ended June 2014 (FY2014), a decrease of 4.8% compared to FY2013. In FY2014, Malaysia, the company's largest geographic market, accounted for 25.4% of the total revenues.
Sime Darby generates revenues through six business segments: motors (40.4% of the total revenues in FY2014), industrial (26.6%), plantation (24.9%), property (6.4%), energy and utilities (1.5%) and others (0.2%).
Revenues by Division
In FY2014, the motors segment recorded revenues of MYR17,745.2 million ($5,458.4 million), an increase of 2.8% over FY2013.
The industrial segment recorded revenues of MYR11,665.2 million ($3,588.2 million) in FY2014, a decrease of 17% compared to FY2013.
The plantation segment recorded revenues of MYR10,953.5 million ($3,369.3 million) in FY2014, a decrease of 6.2% compared to FY2013.
The property segment recorded revenues of MYR2,791.7 million ($858.7 million) in FY2014, an increase of 18% over FY2013.
The energy and utilities segment recorded revenues of MYR676.6 million ($208.1 million) in FY2014, an increase of 0.3% over FY2013.
The others segment recorded revenues of MYR75.8 million ($23.3 million) in FY2014, an increase of 6.9% over FY2013.
Revenues by Geography
Malaysia, Sime Darby's largest geographical market, accounted for 25.4% of the total revenues in
FY2014. Revenues from Malaysia reached MYR11,167.6 million ($3,435.2 million) in FY2014, an increase of 3.8% over FY2013.
China accounted for 24.2% of the total revenues in FY2014. Revenues from China reached
MYR10,616.4 million ($3,265.6 million) in FY2014, an increase of 10.2% over FY2013.

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Revenue Analysis

Singapore accounted for 9% of the total revenues in FY2014. Revenues from Singapore reached
MYR3,958.9 million ($1,217.8 million) in FY2014, a decrease of 14.4% compared to FY2013.
Indonesia accounted for 5.6% of the total revenues in FY2014. Revenues from Indonesia reached
MYR2,473.7 million ($760.9 million) in FY2014, an increase of 1.1% over FY2013.
Australasia accounted for 21.8% of the total revenues in FY2014. Revenues from Australasia reached
MYR9,572.1 million ($2,944.4 million) in FY2014, a decrease of 21% compared to FY2013.
Other countries in South East Asia accounted for 4.6% of the total revenues in FY2014. Revenues from other countries in South East Asia reached MYR2,039.3 million ($627.3 million) in FY2014, an increase of 0.5% over FY2013.
Europe accounted for 3.6% of the total revenues in FY2014. Revenues from Europe reached
MYR1,569.4 million ($482.7 million) in FY2014, a decrease of 1.4% compared to FY2013.
Other countries accounted for 5.7% of the total revenues in FY2014. Revenues from other countries reached MYR2,510.6 million ($772.3 million) in FY2014, a decrease of 13.8% compared to FY2013.

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Sime Darby Berhad
SWOT Analysis

SWOT ANALYSIS
Sime Darby is a diversified company with business interests in plantations, property, motors, industrial equipment, energy and utilities, and healthcare. Its diversified product portfolio and balanced revenue streams reduce the business risks and provide cross selling opportunities to the company. However, intense competition may erode the market share of the company.
Strengths

Weaknesses

Diversified product portfolio and balanced revenue stream enables to tap opportunities in various markets
Robust market position strengthens investor confidence Strong orientation towards research and development creates a competitive edge

Weak financial performance could impact the shareholder's value

Opportunities

Threats

Growing global automotive industry provides incremental growth opportunities
Positive outlook for the global oil crops consumption may enhance topline performance Robust growth forecasted for Asia-Pacific construction industry

Intense competition increases pricing pressure and distresses earnings
Currency risk could have an impact on profitability Increasing health-related regulations in the food industry

Strengths

Diversified product portfolio and balanced revenue stream enables to tap opportunities in various markets Sime Darby has a diversified product portfolio and balanced revenue streams. It provides diversified set of offerings through its six core business segments: motors, industrial, plantation, property, energy and utilities, and others. The motor segment is engaged in the import, assembly, distribution and retail of vehicles. The segment also operates the Sime Darby Fleet Services, an Australia-based four-wheel drive (4WD) bus rental and mechanical services provider for the industry, government and regional tourist market in Western Australia, Queensland and New South Wales. Sime Darby's industrial segment is engaged in distribution of heavy equipment in Malaysia and the Asia Pacific region. The segment offers a variety of equipment and product support services for markets such as plantation, property, mining, marine, forestry, construction, port sectors and power systems.

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Sime Darby Berhad
SWOT Analysis

The company's plantations segment's key activities include upstream, downstream, foods and beverages, and research and development. Its upstream operations include the development of oil palm plantations, cultivation of oil palm, management of estates, and milling of fresh fruit bunches
(FFB) for crude palm oil (CPO) and crude palm kernel oil (CPKO). Its downstream business encompasses the manufacture and distribution of oils and fats products to biodiesels, oleochemicals, and nutraceuticals.
Sime Darby's property segment is engaged in property development, asset management, and hospitality and leisure operations.The energy and utilities segment provides engineering and technical services, trading services, ports and logistics and water management services. Additionally, the other segment provides insurance broking and agency services, healthcare services, and consumer products. Furthermore, Sime Darby has well balanced revenue streams. The motors segment, the company's largest business segment, generated 40.4% of total revenues during FY2014. This was followed by industrial (26.6%), plantation (24.9%), property (6.4%), energy and utilities (1.5%), and others (0.2%).
Thus, the diversified product portfolio and balanced revenue streams reduce the business risks and provide cross selling opportunities to the company. In addition, it also enables the company to tap opportunities in new as well as existing markets.
Robust market position strengthens investor confidence
Sime Darby is among Malaysia’s leading companies and is one of Southeast Asia’s largest diversified multinationals. It has robust market position in several of its business areas. For instance, the company is the world leading producer of certified sustainable palm oil (CSPO). Also, Sime Darby stands among the top three property developers in terms of revenues in Malaysia. The company is also the leading township developer in terms of land bank.
The company is the third largest Caterpillar dealers and operates Caterpillar dealership network in the Asia-Pacific region, with over 140 branches in 10 countries. It is also the largest Caterpillar
Marine dealer in China and is the leader in supplying mining equipment in the territories that it operates in Australia and China. Sime Darby is one of the leading automotive players in the Asia
Pacific region. It is one of the top BMW and Rolls Royce dealers in the world. Moreover, Sime Darby holds the distinction of being the first container port operator within Shandong’s Yellow River Delta.
The company has handled more than 100,000 twenty-foot equivalent units (TEUs) of containers in
FY2014.
Thus, robust market position in several business segments strengthens investor and customer confidence thereby enhancing Sime Darby’s business performance.
Strong orientation towards research and development creates a competitive edge
Sime Darby strongly focuses on research and development (R&D). In line with its development strategy, the company pursues the improvement and upgrading of existing products and the development of new businesses and new products, principally in the fields of motors, energy and

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Sime Darby Berhad
SWOT Analysis

utilities. The company’s plantation business invests heavily in R&D, making breakthroughs in biotechnology and plantation innovation.The plantation R&D comprises of internationally multi-located network of R&D and Innovation Centers, with seven in Malaysia and four overseas. With more than
250 scientists and researchers, as well as more than 600 supporting staff, R&D centers in Sime
Darby Plantations are involved in innovations for the betterment of the company and the industry in general. The research work is divided into five areas: plantation research and advisory, processing technology, biotechnology and breeding, innovation centers, and Darby seeds and agricultural services. The plantation research and advisory area consists of technology transfer and agronomy services, oil palm research, crop protection, rubber, soils and general agriculture and mechanization units to ensure well-being of the estates, best planting materials use and good agricultural practices. The processing technology area consists of processing and engineering, lab services and oils and fats
/ oleochemicals / fabric units to recommend proven improved mill processes and provide lab analysis, and conduct fundamental research on downstream palm products and transfer technology to innovation centers and subsidiaries for customized product development. The biotechnology and breeding area encompasses strategic long-term R&D for the sustainable profitability and competitive edge of the plantation segment. The innovation centers develop new products for global customers.
Sime Darby seeds and agricultural services area is engaged in mass production of oil palm planting materials for internal and external customers, as well as provision of estate consultancy services In
FY2014, the company’s R&D developed new products as demonstrated by its filing of five new patent families, 19 publications submitted, and 31 presentations at scientific conferences.
Thus, strong focus on research and development help strengthen business operations thereby providing competitive advantage to the company.

Weaknesses

Weak financial performance could impact the shareholder's value
Sime Darby’s revenues have decreased drastically in the recent past. In FY2014, the company recorded revenues of MYR43,908 million ($13,506.1 million) as compared to MYR46,630.5 million
($14,343.5 million) in FY2012, declining at a compound annual change rate (CARC) of 3% during the FY2012-14 periods. Moreover, the operating profit declined to MYR4,118.6 million ($1,266.9 million) in FY2014, from MYR5,645.3 million ($1,736.4 million) in FY2012, declining at a CARC of
15% during the same period. Also, the net profit declined to MYR3,520.5 million ($1,082.9 million) in FY2014, as compared to MYR4,150.2 million ($1,276.6 million) in FY2012, declining at a CARC of 10% during the same period.
The decline in financial performance was attributed to uncertainties in the global economy, volatility in commodity prices, tighter fiscal and monetary policies and geopolitical risks. Therefore, if sustained decline in revenues of the company continue in the future it might impact the shareholder’s value.

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Sime Darby Berhad
SWOT Analysis

Opportunities

Growing global automotive industry provides incremental growth opportunities
The global automotive manufacturing industry has produced relatively consistent levels of growth overall in recent years. The industry is expected to continue to follow a similar pattern through to the end of the forecast period in 2018. According to MarketLine (a unit of Informa), the global automotive manufacturing industry generated total revenues of $1,657.6 billion in 2014, representing a growth of 9% over 2013. Furthermore, the industry is expected to grow at a compound annual growth rate (CAGR) of 6.7% for the 2014-18 periods to reach a value of approximately $2,151.8 billion in 2018. In addition, the industry production volume is expected to rise to 184,151,400 units by the end of 2018, representing a CAGR of 5% for the 2014-18 periods.
The company’s motor segment operates through Sime Darby Motors, which is engaged in the import, assembly, distribution and retail of vehicles. The segment primarily operates in Malaysia, Singapore,
China, Hong Kong, Macau, Australia, New Zealand, Thailand, Vietnam and Taiwan. The segment retails various brands, including BMW, Mini, Rolls-Royce, Porsche, Jaguar, Lamborghini, Hyundai,
Land Rover, Ford and Peugeot. In terms of assembly operations, the segment assembles various
Hyundai passenger and commercial vehicles as well as Land Rover and BMW passenger vehicles through its subsidiary, Inokom in Kulim, Kedah. It also represents the Hertz car rental business in
Malaysia and Singapore. Therefore, the growing global automotive industry provides incremental growth opportunities for Sime Darby to boost its financial performance.
Positive outlook for the global oil crops consumption may enhance topline performance
The global oil crops market has experienced strong growth in recent years and is expected to have moderate growth in the coming years. According to MarketLine (a unit of Informa), the global oil crops market generated total revenues of $372.3 billion in 2014, representing a CAGR of 4.9% between 2009 and 2014. The performance of the market is forecast to have an anticipated CAGR of 3% for the period from 2014-18, which is expected to drive the market to a value of $414.9 billion by the end of 2018.
The company's plantations segment is engaged in the upstream and downstream operations of the oil crops industry.The company's upstream operations include the development of oil palm plantations, cultivation of oil palm, management of estates, and milling of fresh fruit bunches (FFB) for crude palm oil (CPO) and crude palm kernel oil (CPKO). Its downstream business encompasses the manufacture and distribution of oils and fats products to biodiesels, oleochemicals, and nutraceuticals.
Thus, the growing global oil crops industry provides Sime Darby an opportunity to gain more customers and enhance its topline performance.
Robust growth forecasted for Asia-Pacific construction industry

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Sime Darby Berhad
SWOT Analysis

The outlook for the Asia-Pacific construction industry is robust. According to MarketLine (a unit of
Informa), the Asia-Pacific construction industry generated total revenues of $4,368.6 billion in 2014, representing a CAGR of 12% between 2009 and 2014. The performance of the industry is forecast to remain strong, with an anticipated CAGR of 9% for the 2014-18 periods, which is expected to drive the industry to a value of $6,257.7 billion by the end of 2018.
The company’s property business is expected to benefit from the growing end market. Sime Darby’s property segment is engaged in property development, asset management, hospitality and leisure.
The company has operations in Malaysia, Singapore, Australia, Vietnam and the UK. Thus, the growing construction industry in the Asia-Pacific region is expected to drive the demand for the company’s services, thus enhancing its topline performance.

Threats

Intense competition increases pricing pressure and distresses earnings
Sime Darby operates in a highly competitive industry. The company competes on the basis of price, quality, delivery, service and support, technology and innovation. It competes by offering a wide variety of innovative and high-quality products, which are competitively priced. Sime Darby competes with competitors having larger volumes of business and greater financial resources than those of the company. The company competes worldwide with a number of other manufacturers and distributors that produce and sell similar products. Some of its competitors include Hutchison
Whampoa, Kanematsu, The Yokohama Rubber, and Wilmar International, among others. Thus, intense competition may erode the market share of Sime Darby. In addition, it may also increase pricing pressure which may distress the earnings of the company.
Currency risk could have an impact on profitability
The company is an enterprise with worldwide operations in about 30 countries. Its businesses are conducted in a variety of currencies, giving rise to currency risks. The effect of changes in demand and refinancing conditions, and fluctuations in exchange rates can have a significant impact on the company's earnings.
The financial results of each overseas subsidiary of the company are consolidated into the results of the parent company after translating into Malaysian Ringgit. Fluctuations in the value of the
Malaysian Ringgit compared to foreign currencies, including the Australian dollar, Chinese renminbi, euro, Hong Kong dollar, Indonesian rupiah, New Zealand dollar, British pound, Singapore dollar,
Thailand baht and the US dollar impacted the company's earnings.
The value of the company's equity investment in foreign countries may fluctuate based upon changes in foreign currency exchange rates. These fluctuations, which are recorded in a cumulative translation adjustment account, may result in losses in the event a foreign subsidiary is sold or closed at a time when the foreign currency is weaker than when the company initially invested in the country. Thus,

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SWOT Analysis

any unfavorable change in other currencies could have an adverse impact on the profitability of the company. Increasing health-related regulations in the food industry
Sime Darby is engaged in the production and supply of edible oils and specialty fats. The company’s plantations segment's key activities include upstream, downstream, and foods and beverages. Its upstream operations include the development of oil palm plantations, cultivation of oil palm, and milling of fresh fruit bunches (FFB) for crude palm oil (CPO) and crude palm kernel oil (CPKO).
Compliance with the Environmental, Safety and Health (ESH) policy is essential for the company.
The company also has to comply with applicable legal and other requirements. Furthermore, Sime
Darby must adhere to the approved codes of practice on ESH for the industry. The company is also required to take appropriate and practicable measures to prevent pollution, degradation of the environment and prevention of injury and ill health.Thus, non-compliance with food-related regulations could result in financial losses and impact the brand image of the company.

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Sime Darby Berhad
Top Competitors

TOP COMPETITORS

The following companies are the major competitors of Sime Darby Berhad

Kanematsu Corporation
Hutchison Whampoa Limited
The Yokohama Rubber Co., Ltd.
Wilmar International Limited

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Sime Darby Berhad
Company View

COMPANY VIEW
A statement by Mohd Bakke Salleh, the President and Group Chief Executive of Sime Darby, is given below. The statement has been taken from the company's 2014 annual report.
Dear Shareholders,
The past financial year has been challenging against a background of economic uncertainties and volatile commodity prices. However, I am pleased to report that the Group has recorded a creditable performance despite the many headwinds. We are accomplished several strategic initiatives under the key thrusts of the Five-Year Strategy Blueprint outlined in 2011.
The Company has been focusing on improving its business performance, strengthening its capital allocation process and maintaining a healthy gearing level – all with the end objective of ensuring a greater commitment to deliver real value for shareholders.
In the period under review, we achieved cost reductions and volume growth, resulting in stronger cash flows. We rose to the challenge and navigated through difficult times to emerge a much stronger company. We exceeded both our headline Key Performance Indicators (KPIs) Net Earnings target of RM2.8 billion and Return on Average Shareholders’ Equity of 10% by 20%, demonstrating the resilience of the Group.
KEY STRATEGIC ACHIEVEMENTS
I am indeed pleased to note that the Strategy Blueprint laid out by the Management team three years ago is on-track. Against the backdrop of a rapidly changing business environment and the accelerating rate of change of macroeconomic factors, we continue to make refinements to ensure our strategic initiatives remain dynamic and relevant.
In the last financial year, we have achieved several strategic milestones. Among the significant operational achievements in the Plantation Division is the increase in Oil Extraction Rate (OER) from
21.79% in FY2013 to 21.86% in FY2014, with strong focus on achieving the 5-Year target of 22.8%.
In the midst of change in weather pattern and constantly changing supply-demand dynamics, the
Division has been undertaking several yield improvement efforts such as high-density planting and enhanced agro management practices. In Liberia, an additional 2,100 hectares of oil palm were planted in the past year, bringing the total planted area including rubber to 10,142 hectares.
The Downstream segment has turned profitable in the last two years, particularly on the back of the
Business Turnaround Plan in the Unimills operations. The Pulau Laut refinery, Sime Darby’s first refinery in Indonesia, has commenced operations while the Sime Darby Jomalina refinery was accredited as a fully segregated, certified sustainable refinery, making it the world’s largest producer of fully segregated palm oil (FSPO) with a production capacity of 330,000 MT per annum. The Group has also acquired a 30% stake in Verdezyne Inc, a US-based industrial biotechnology company.

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Company View

This is part of an initiative to spearhead the conversion of traditional and non-traditional palm-based commodities into products of higher value.
The Industrial Division continues to grow with Caterpillar by riding on its product range expansion and also expanding the exposure for non-Caterpillar products in other sectors by leveraging on existing distribution and logistics capabilities. During the year, the Division regained its leadership position for Caterpillar products in Malaysia and Singapore and is the largest Caterpillar Marine dealer in China. The Division is also the leader in supplying mining equipment in the territories that we operate in Australia and China.
The Motors Division marked its entry into new geographies through the acquisition of Kia distributorship in Taiwan and the acquisition of the BMW/MINI distributorship in Vietnam. This is in line with the Division’s strategy to pursue expansion in new markets, particularly in areas with high growth and low vehicle penetration. The Division also made its maiden foray into BMW market in
Australia by acquiring BMW/MINI dealership in Brisbane. In Malaysia, the Division formed a joint-venture with SISMA Auto to distribute Land Rover and Jaguar cars. Besides these accomplishments, the Division has also achieved additional profits from other strategic initiatives such as securing distribution of commercial vehicles and the import of highend/luxury used-cars.
The Property Division successfully launched nine new developments in Malaysia which include both themed and niche developments as part of its growth plans. These developments, namely new projects such as Chemara Hills in Negeri Sembilan and City of Elmina and Melawati Mall in Selangor, are expected to strengthen Sime Darby Property’s leadership in distinctive integrated and niche developments. On the international front, Phase Two of the Battersea Power Station project in
London that was launched in May 2014 continues to draw overwhelming response with a take-up rate of 95% within the first week of sales following the huge success of Phase One last year.
Despite the divestment of a 10% equity stake in Eastern & Oriental Berhad (E&O) to its Managing
Director Datuk Terry Tham, the Group continues to maintain its presence in the company as part of its long-term plans to have access to high growth areas in Penang and Johor. The divestment is also a strategic move to further incentivise the current management team of E&O to align their interests with the Group. As part of a strategic collaboration, Sime Darby Property sold a 135-acre land in Elmina West to E&O for RM240 million, which will enhance the land bank value of the City of Elmina while establishing synergistic benefits between both companies.
As part of the continuous review of its portfolio of businesses, the Group has exited the power business through the divestment of its Malaysian and Thai power assets. This divestment was undertaken to enhance the overall returns of the Group as further investments in the power business would result in long payback periods with high capital expenditure upfront. The Energy & Utilities
Division will now focus on its Trading and Engineering & Technical Services business units under
Non-China and Port and Water operations under China Utilities. In China, as part of the Weifang
Port expansion plan, the 3x20,000 MT berths was completed and successfully delivered while the approval process of the construction of the 2x50,000 MT and 3x30,000 MT berth have also commenced. The Taiping Port was also completed in June 2013 and commenced full operations in
November 2013.

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Sime Darby Berhad
Company View

Sustainability and Corporate Responsibility
Sime Darby continues to move towards 100% Roundtable on Sustainable Palm Oil (RSPO) certification to maintain its position as the world’s largest producer of certified sustainable palm products. Currently, 100% of the Malaysian Upstream operations and 92% of the Indonesian Upstream operations have been fully RSPO-certified.
In January 2014, we were one of the first signatories to the new Sustainable Palm Oil Manifesto, signaling our commitment to strive beyond the robust requirements of the RSPO into a new era of sustainable palm oil production.
STRATEGY BLUEPRINT – THE ROAD AHEAD
We continue to refine the strategic initiatives underpinning our 5-Year blueprint to respond to developments in the key macro trends that impact our businesses. In the Plantation Division, strategic land bank expansion continues to be an important priority as the Group continues to assess and explore potential arable land in more locations. Our new Land Acquisition Reference Manual will guide our efforts to achieve the free, prior and informed consent of local communities, enhancing our social license to operate. We will continue to maximize the potential of existing assets in realizing yield potentials while looking at strategic partnership in the downstream segment to be a catalyst in opening up new markets, customers and products.
In line with its expansion plans, on 9 October 2014, Sime Darby Plantation (SDP) launched a takeover offer for the shares of New Britain Palm Oil Limited (NBPOL) at £7.15 per share or a total purchase consideration of £1.07 billion for up to 100% shareholding.The offer is conditional upon SDP receiving acceptance of not less than 51.0% of the voting rights in NBPOL. This offer also serves as a rare opportunity to acquire a unique, high quality brownfield asset and well-managed company which meets global sustainability standards. Besides boosting SDP’s current land bank size to almost one million hectares, the Division will also be able to strengthen and expand its Downstream business in Europe. This acquisition, which will be funded through internally generated funds and external borrowings, is targeted for completion by end of December this year.
In the Industrial Division, aligning growth with the principal remains the main focus and as part of this strategy, the Division is exploring growth in other sectors to diversify income streams beyond coal mining in Australia. The broadening of product range and organic expansion of non-Caterpillar products towards a multi-category distribution play will also be a growth option.
The Motors Division continues to be on the lookout for opportunities in the Indochina region and
Taiwan to grow existing profit pools. The Division will pursue outlet expansion in the Asia Pacific with increased focus on aftersales and the used-car business.
In the Property Division, new township developments via strategic partnerships and continuous research and innovation will remain a prime focus to improve time-to-market of new product launches.
The Division is also looking at strengthening its property investment portfolio and capabilities.

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Sime Darby Berhad
Company View

Following the sale of the power assets, the Energy & Utilities Division is now focused on growing its
Engineering Services business in its Non-China operations and to continue strengthening its ports and water management business in China.
The progress we are making on these strategic initiatives is highly encouraging as we aspire to successfully achieve the key targets outlined in the Strategy Blueprint. I would like to reaffirm that the Group will remain focused on maintaining operational excellence across all Divisions to increase productivity levels and reduce costs. Our increased earnings and reduced costs are testament to our financial discipline. Sime Darby will also explore growth opportunities to create new profit pools and unlock shareholder value through corporate exercises. The prime objective of the Management team is to deliver sustainable value to all stakeholders.
MOVING FORWARD
Amidst continued market uncertainty and the impact of austerity programmes that are still affecting the markets around the world, the Management team has been tasked to deliver the successful execution of our strategy while making sure the gains delivered are sustainable. We note that the year ahead might see a moderate improvement in the external environment. However, the macro risks and challenges remain and the potential for continued volatility is significant. Having said that, it is worth highlighting that the markets which the Group operates in have generally shown improvement, leading to a more positive outlook for the overall businesses in the year ahead. The rebalancing of growth, growth, particularly in Asia, increasing urbanisation and the continued focus on executing the Group’s key strategies will be the main drivers for long-term positive growth.
The Group’s fundamental principle remains acting in the best long-term interest of our stakeholders and as such, rest assured that we will be taking into consideration the relevant economic and political factors in executing our strategies in the on-going investment for growth in our core businesses.
Today, thanks to our meticulously planned transformation initiatives, we are a stronger Company, with a market capitalisation of RM58.6 billion as at 30 June 2014.
ACKNOWLEDGEMENT
It is indeed a privilege to be part of the Sime Darby family and I am honoured to be able to lead such a dedicated, passionate and committed workforce who have stood through thick and thin with the
Company despite challenging times. My heartfelt thanks to all our people for their significant contribution to the Company’s success over the years.
On behalf of the Management team, I would also like to express our sincere appreciation to the esteemed members of the Board and our shareholders for your continued confidence and support in the Group. Let me also take this opportunity to welcome our newest Board member, Dato’ Rohana
Tan Sri Mahmood, who brings with her a breadth of knowledge and expertise.
A special thanks to all our business partners, suppliers and customers who have journeyed with us over the years and are an important reason for our success as we continuously strive to deliver excellence. Sime Darby Berhad
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Sime Darby Berhad
Company View

Our strategies and priorities are clear. There are great opportunities ahead as we build a long-term sustainable future for our businesses. I am proud of where we stand now, but I am always aware of the challenging journey ahead. Together as a team, we will continue to take every step to reach the goals of the Company.

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Sime Darby Berhad
Locations and Subsidiaries

LOCATIONS AND SUBSIDIARIES
Head Office
Sime Darby Berhad
19th Floor
Wisma Sime Darby
Jalan Raja Laut
Kuala Lumpur 50350
MYS
P:603 2691 4122
F:603 2719 0044 http://www.simedarby.com Other Locations and Subsidiaries
Sime Darby Plantation Sdn Bhd
Main Tower, Level 3
Plantation Tower
No.2 Jalan PJU 1A/7
Ara Damansara
47301 Petaling Jaya Selangor
MYS

Sime Darby Energy & Utilities
12th Floor, Wisma Consplant 1
West/Central Tower
No. 2 Jalan SS 16/4
47500 Subang Jaya
Selangor Darul Ehsan
MYS

Sime Darby Property
Block G, 10th Floor
No.2, Jalan PJU 1A/7A
Ara Damansara, PJU 1A
47301 Petaling Jaya
Selangor
MYS

Sime Darby Industrial Sdn Bhd
Tractors Engineering Complex
1 Jalan Puchong
Taman Perindustrian Puchong Utama
47100 Puchong
Selangor
MYS

Sime Darby Motors
No 33, Jalan Pelukis U1/46
Temasya Industrial Park
Seksyen U1
40150 Shah Alam
Selangor Darul Ehsan
MYS

China Engineers Limited
8 Fuk Wang Street
Yuen Long Industrial Estate
Yuen Long, N.T.
HKG

Tractor Singapore Limited
26 Benoi Sector
Singapore 629858
SGP

Hastings Deering Group
Kerry Road, Archerfield, Qld. 4108
Brisbane
AUS

Sime Darby Berhad
© MarketLine

Page 36

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