EEh>ZWKZdϤϢϣϪ

FUTURE
FOCUSED
 ^ŝŵĞĂƌďLJĞƌŚĂĚŶŶƵĂůZĞƉŽƌƚϮϬϭϴ

FUTURE FOCUSED
ƚ^ŝŵĞĂƌďLJĞƌŚĂĚ͕ǁĞĂƌĞƐĞƫŶŐƚŚĞƐƚĂŐĞĨŽƌĂŶĞdžĐŝƟŶŐ
ĨƵƚƵƌĞ͘KƵƌĐŽƌĞƚƌĂĚŝŶŐďƵƐŝŶĞƐƐĞƐŚĂǀĞŐƌŽǁŝŶŐĨŽŽƚƉƌŝŶƚƐ
ĂĐƌŽƐƐƚŚĞƐŝĂWĂĐŝĮĐŐƌŽǁƚŚƌĞŐŝŽŶ͘>ĞĂŶĞƌĂŶĚŵŽƌĞĂŐŝůĞ͕
ǁĞĂƌĞĂďůĞƚŽƚĂŬĞĂĚǀĂŶƚĂŐĞŽĨŶĞǁŽƉƉŽƌƚƵŶŝƟĞƐŝŶŬĞLJ
ƐĞĐƚŽƌƐĂŶĚĞdžƉůŽƌĞŝŶŶŽǀĂƟǀĞƚĞĐŚŶŽůŽŐŝĞƐĂƐƉŽƚĞŶƟĂůŶĞǁ
ƌĞǀĞŶƵĞƐƚƌĞĂŵƐ͘dŽƐƵƉƉŽƌƚŽƵƌƐƚƌĂƚĞŐLJ͕ǁĞǁŝůůĐŽŶƟŶƵĞƚŽ
ĨŽĐƵƐŽŶŽƉĞƌĂƟŽŶĂůĞdžĐĞůůĞŶĐĞ͕ŐƌŽǁƚŚĂĐĐĞůĞƌĂƟŽŶĂŶĚǁŽƌŬ
ƚŽǁĂƌĚƐƌĂƟŽŶĂůŝƐŝŶŐŽƵƌŶŽŶͲĐŽƌĞďƵƐŝŶĞƐƐĞƐ͘dŚĞĞŶĚ
ŐŽĂůŝƐƚŽďĞƚŚĞůĞĂĚŝŶŐŵŽƚŽƌƐĂŶĚŝŶĚƵƐƚƌŝĂůƉůĂLJĞƌŝŶ
ƐŝĂWĂĐŝĮĐ͘tŝƚŚƉƌŽǀĞŶƚƌĂĚŝŶŐĂŶĚƐĞƌǀŝĐĞƐďƵƐŝŶĞƐƐŵŽĚĞůƐ͕
ďĂůĂŶĐĞĚƉŽƌƞŽůŝŽĞdžƉŽƐƵƌĞĂŶĚůŽŶŐͲƐƚĂŶĚŝŶŐƉĂƌƚŶĞƌƐŚŝƉƐ
ǁŝƚŚĞƐƚĂďůŝƐŚĞĚďƌĂŶĚƐ͕ǁĞĂƌĞǁĞůůƉŽƐŝƟŽŶĞĚƚŽůĞǀĞƌĂŐĞ
ŽŶƚŚĞƌĞŐŝŽŶ͛ƐŐƌŽǁƚŚĂŶĚƌŝƐŝŶŐĂŋƵĞŶĐĞ͘
dŽďĞƚŚĞůĞĂĚŝŶŐDŽƚŽƌƐĂŶĚ
/ŶĚƵƐƚƌŝĂůƉůĂLJĞƌ
ŝŶƐŝĂWĂĐŝĮĐ͘

OUR VISION
& MISSION

tĞĂƌĞĐŽŵŵŝƩĞĚƚŽĚĞǀĞůŽƉŝŶŐĂǁŝŶŶŝŶŐ
ƉŽƌƞŽůŝŽŽĨƐƵƐƚĂŝŶĂďůĞďƵƐŝŶĞƐƐĞƐ͘

tĞƐƵďƐĐƌŝďĞƚŽŐŽŽĚĐŽƌƉŽƌĂƚĞ
ŐŽǀĞƌŶĂŶĐĞĂŶĚŚŝŐŚĞƚŚŝĐĂůǀĂůƵĞƐ͘

tĞĐŽŶƟŶƵŽƵƐůLJƐƚƌŝǀĞƚŽĚĞůŝǀĞƌƐƵƉĞƌŝŽƌ
ĮŶĂŶĐŝĂůƌĞƚƵƌŶƐƚŚƌŽƵŐŚŽƉĞƌĂƟŽŶĂů
ĞdžĐĞůůĞŶĐĞĂŶĚŚŝŐŚƉĞƌĨŽƌŵĂŶĐĞƐƚĂŶĚĂƌĚƐ͘

tĞƉƌŽǀŝĚĞĂŶĞŶǀŝƌŽŶŵĞŶƚĨŽƌŽƵƌƉĞŽƉůĞ
ƚŽƌĞĂůŝƐĞƚŚĞŝƌĨƵůůƉŽƚĞŶƟĂů͘

OUR CORE VALUES

Integrity
Uphold high levels of
personal and professional
values in all our business
ŝŶƚĞƌĂĐƟŽŶƐĂŶĚĚĞĐŝƐŝŽŶƐ͘
Respect & Responsibility
Respect for the individuals
we interact with and the
environment that we
operate in (internally and
ĞdžƚĞƌŶĂůůLJͿĂŶĚĐŽŵŵŝƫŶŐ
to being responsible in all
ŽƵƌĂĐƟŽŶƐ͘

Excellence Enterprise
Stretch the horizons of ^ĞĞŬĂŶĚƐĞŝnjĞŽƉƉŽƌƚƵŶŝƟĞƐ
growth for ourselves and with speed and agility,
our business through our ĐŚĂůůĞŶŐŝŶŐƐĞƚďŽƵŶĚĂƌŝĞƐ͘
ƵŶǁĂǀĞƌŝŶŐĂŵďŝƟŽŶƚŽ
achieve outstanding personal
ĂŶĚďƵƐŝŶĞƐƐƌĞƐƵůƚƐ͘
A Leading Dealer of
Caterpillar Products and
ůůŝĞĚ^ŽůƵƟŽŶƐ

ůĞĂĚĞƌŝŶƚŚĞŚĞĂǀLJ
ĞƋƵŝƉŵĞŶƚďƵƐŝŶĞƐƐ͕^ŝŵĞ
ĂƌďLJ/ŶĚƵƐƚƌŝĂůƌĞƉƌĞƐĞŶƚƐ ONE OF THE
ĂƚĞƌƉŝůůĂƌĂŶĚĂƌĂŶŐĞ
ŽĨĂůůŝĞĚďƌĂŶĚƐ͘/ƚŝƐ
WORLD’S
ĂŵŽŶŐƚŚĞǁŽƌůĚ͛ƐůĂƌŐĞƐƚ LARGEST
ĂƚĞƌƉŝůůĂƌĚĞĂůĞƌƐ͕ŽīĞƌŝŶŐ
ĂĐŽŵƉƌĞŚĞŶƐŝǀĞƌĂŶŐĞŽĨ
CATERPILLAR
ŝŶĚƵƐƚƌŝĂůƐŽůƵƟŽŶƐĂĐƌŽƐƐ
ĂŶĞƚǁŽƌŬŽĨϭϯϭďƌĂŶĐŚĞƐ
DEALERS
ƚŚƌŽƵŐŚŽƵƚϭϱĐŽƵŶƚƌŝĞƐĂŶĚ
ƚĞƌƌŝƚŽƌŝĞƐŝŶƚŚĞƐŝĂWĂĐŝĮĐ
ƌĞŐŝŽŶ͘^ŝŵĞĂƌďLJ/ŶĚƵƐƚƌŝĂů
131 branches
throughout the
ĂůƐŽĚŝƐƚƌŝďƵƚĞƐŽƚŚĞƌ ƐŝĂWĂĐŝĮĐƌĞŐŝŽŶ
ĞƋƵŝƉŵĞŶƚďƌĂŶĚƐƐƵĐŚĂƐ
EĞǁ,ŽůůĂŶĚĂŐƌŝĐƵůƚƵƌĂů
ƚƌĂĐƚŽƌƐ͕dĞƌďĞƌŐƚĞƌŵŝŶĂů
ƚƌĂĐƚŽƌƐĂŶĚWĞƌŬŝŶƐĞŶŐŝŶĞƐ͘

ZĞƉƌĞƐĞŶƟŶŐŵŽƌĞƚŚĂŶ

30
Allied Brands and
Business activities: ^ŽůƵƟŽŶƐ
ͻ ,ĞĂǀLJƋƵŝƉŵĞŶƚ^ĂůĞƐ
ʹEĞǁĂŶĚhƐĞĚ
ͻ WŽǁĞƌ^LJƐƚĞŵƐ^ĂůĞƐ
ͻ WƌŽĚƵĐƚ^ƵƉƉŽƌƚ
ͻ ƋƵŝƉŵĞŶƚZĞŶƚĂů
ͻ /ŶĚƵƐƚƌŝĂů^ŽůƵƟŽŶƐ

15
KƉĞƌĂƟŶŐŝŶϭϱĐŽƵŶƚƌŝĞƐ
and territories
Find out more • Australia • New Caledonia
^ŝŵĞĂƌďLJ/ŶĚƵƐƚƌŝĂůtĞďƐŝƚĞ • Brunei • Papua New Guinea
• China • Singapore
• Christmas Island • Solomon Islands
• Hong Kong • Thailand
• Macau • Vietnam
• Malaysia • South Korea
Download • Maldives
^ŝŵĞĂƌďLJ/ŶĚƵƐƚƌŝĂů&ĂĐƚ^ŚĞĞƚ
 Read more about the performance of
ŽƵƌ/ŶĚƵƐƚƌŝĂůŝǀŝƐŝŽŶŽŶƉĂŐĞƐϯϱƚŽϰϯ
of this Annual Report.

L
A

T RI
INDUS

Industrial Valet - Sime Darby Industrial Malaysia’s

one-stop shop for heavy equipment parts and
accessories
^ŝŵĞ ĂƌďLJ /ŶĚƵƐƚƌŝĂů DĂůĂLJƐŝĂ ůĂƵŶĐŚĞĚ ŝƚƐ ĮƌƐƚ
ĞͲĐŽŵŵĞƌĐĞ ƉůĂƞŽƌŵ Ͳ /ŶĚƵƐƚƌŝĂů sĂůĞƚ͕ ĨŽƌ ŶŽŶͲd
ŚĞĂǀLJŵĂĐŚŝŶĞƌLJĞƋƵŝƉŵĞŶƚƉĂƌƚƐĂŶĚŵĞƌĐŚĂŶĚŝƐĞ͘
dŚĞ ĞͲĐŽŵŵĞƌĐĞ ƉůĂƞŽƌŵ ƐĞƌǀĞƐ ĂƐ ĂŶ ĂĚĚŝƟŽŶĂů
ƐĂůĞƐ ĐŚĂŶŶĞů ĨŽƌ ĐƵƐƚŽŵĞƌƐ ƚŽ ƉƵƌĐŚĂƐĞ ƉĂƌƚƐ
ĂŶĚ ŵĞƌĐŚĂŶĚŝƐĞ ǁŝƚŚ ũƵƐƚ Ă ĨĞǁ ĐůŝĐŬƐ ŽŶůŝŶĞ͘
/ŶĚƵƐƚƌŝĂůǀĂůĞƚ͘ĐŽŵŝƐƚŽƵƚĞĚĂƐŽŶĞŽĨŝƚƐŬŝŶĚŝŶƚŚĞ
ŵĂƌŬĞƚƉůĂĐĞ ŝŶ DĂůĂLJƐŝĂ͘ /ƚ ǁĂƐ ĐƌĞĂƚĞĚ ĞdžĐůƵƐŝǀĞůLJ
ǁŝƚŚ ŝƚƐ ĐƵƐƚŽŵĞƌƐ ŝŶ ŵŝŶĚ͕ ƉƌŽǀŝĚŝŶŐ ƚŚĞŵ ǁŝƚŚ Ă
ĐŽŶǀĞŶŝĞŶƚ͕ĨĂƐƚ͕ĞĸĐŝĞŶƚĂŶĚǀĂůƵĞͲĂĚĚĞĚŝŶŶŽǀĂƟǀĞ
ƐĞƌǀŝĐĞ͘
 ONE
One of the Leading
ƵƚŽŵŽƟǀĞWůĂLJĞƌƐŝŶ
OF THE
ƐŝĂWĂĐŝĮĐ LARGEST
^ŝŵĞĂƌďLJDŽƚŽƌƐŝƐŽŶĞ
BMW Dealers
ŽĨƚŚĞůĞĂĚŝŶŐĂƵƚŽŵŽƟǀĞ in the World
ŐƌŽƵƉƐŝŶƚŚĞƐŝĂWĂĐŝĮĐ
ƌĞŐŝŽŶ͕ƌĞƉƌĞƐĞŶƟŶŐůƵdžƵƌLJ
ďƌĂŶĚƐƐƵĐŚĂƐDt͕
ZŽůůƐͲZŽLJĐĞ͕:ĂŐƵĂƌ͕>ĂŶĚ
ZŽǀĞƌĂŶĚWŽƌƐĐŚĞƚŽ
ďƌŽĂĚͲĂƉƉĞĂůŵĂƌŬĞƚďƌĂŶĚƐ
ŝŶĐůƵĚŝŶŐ&ŽƌĚĂŶĚ,LJƵŶĚĂŝ
ĂƐǁĞůůĂƐĐŽŵŵĞƌĐŝĂů
ǀĞŚŝĐůĞƐ͘^ŝŵĞĂƌďLJDŽƚŽƌƐ
ŝƐĂĐƟǀĞůLJŝŶǀŽůǀĞĚŝŶĂůů
ĨĂĐĞƚƐŽĨƚŚĞĂƵƚŽŵŽƟǀĞ
ďƵƐŝŶĞƐƐʹĨƌŽŵŝŵƉŽƌƚĂƟŽŶ
ĂŶĚĂƐƐĞŵďůLJƚŽĚŝƐƚƌŝďƵƟŽŶ͕
ƌĞƚĂŝůĂŶĚƌĞŶƚĂů͘^ŝŵĞĂƌďLJ
DŽƚŽƌƐƐĞƌǀĞƐĂƐĂďƌŝĚŐĞ
ďĞƚǁĞĞŶŝƚƐƉƌŝŶĐŝƉĂůƐĂŶĚ
ĐƵƐƚŽŵĞƌƐƚŚƌŽƵŐŚƚŚĞ
ĞdžƚĞŶƐŝǀĞŶĞƚǁŽƌŬƐŝŶƚŚĞ
ŵĂƌŬĞƚƐŝƚŽƉĞƌĂƚĞƐŝŶ͘/ƚƐ
ƌĞƚĂŝůŽƉĞƌĂƟŽŶƐĨĞĂƚƵƌĞ
ƐŽŵĞŽĨƚŚĞďĞƐƚĂŶĚůĂƚĞƐƚ
ƐƚĂƚĞͲŽĨͲƚŚĞͲĂƌƚĨĂĐŝůŝƟĞƐŝŶ
ƚŚĞƌĞŐŝŽŶ͘

ƵƐŝŶĞƐƐĂĐƟǀŝƟĞƐ͗
ͻ ƐƐĞŵďůLJ
ͻ ŝƐƚƌŝďƵƚŽƌͬ/ŵƉŽƌƚĞƌ
ͻ ZĞƚĂŝůŽĨEĞǁΘhƐĞĚĂƌƐ
ͻ ŌĞƌͲƐĂůĞƐ^ĞƌǀŝĐĞƐ
ͻ sĞŚŝĐůĞZĞŶƚĂů
More than
80,000
Vehicles sold last year

Find out more

^ŝŵĞĂƌďLJDŽƚŽƌƐtĞďƐŝƚĞ

Download
^ŝŵĞĂƌďLJDŽƚŽƌƐ&ĂĐƚ^ŚĞĞƚ
 Read more about the performance of our Motors
ŝǀŝƐŝŽŶŽŶƉĂŐĞƐϰϰƚŽϱϮŽĨƚŚŝƐŶŶƵĂůZĞƉŽƌƚ͘

Represents more than

30 brands
in the$VLD3DFLÀFUHJLRQ
MOTORS

Sime Darby Auto Engineering (SDAE) Engine Assembly Facility -

/ŶĐƌĞĂƐŝŶŐ ŽƵƌ ĂƐƐĞŵďůLJ ĐĂƉĂĐŝƚLJ ǁŝƚŚ ƚŚĞ ŝŶƚƌŽĚƵĐƟŽŶ ŽĨ BMW
engine assembly
/Ŷ DĂLJ ϮϬϭϴ͕ ^ŝŵĞ ĂƌďLJ DŽƚŽƌƐ ǀŝĂ ŝƚƐ ǁŚŽůůLJͲŽǁŶĞĚ ƐƵďƐŝĚŝĂƌLJ͕
^ŝŵĞĂƌďLJƵƚŽŶŐŝŶĞĞƌŝŶŐ^ĚŶŚĚ͕ŽƉĞŶĞĚĂŶĞǁDtĞŶŐŝŶĞ
ĂƐƐĞŵďůLJƉůĂŶƚŝŶ<Ƶůŝŵ͕<ĞĚĂŚ͘

dŚĞZDϭϯϮŵŝůůŝŽŶƉůĂŶƚǁŝƚŚĂďƵŝůƚͲƵƉĂƌĞĂŽĨϮϰ͕ϬϬϬƐƋŵŚĂƐƚŚĞ
ĐĂƉĂĐŝƚLJ ƚŽ ĂƐƐĞŵďůĞ ϭϬ͕ϬϬϬ ĞŶŐŝŶĞƐ ĨŽƌ Dt͛Ɛ ƌĂŶŐĞ ŽĨ ůŽĐĂůůLJͲ
ĂƐƐĞŵďůĞĚǀĞŚŝĐůĞƐ͕ĂŶĚŝƐƚŚĞƐĞĐŽŶĚDtĞŶŐŝŶĞĂƐƐĞŵďůLJƉůĂŶƚŝŶ
^ŽƵƚŚĞĂƐƚƐŝĂĂŌĞƌdŚĂŝůĂŶĚ͘

dŚĞŶĞǁƉůĂŶƚƐƵƉƉŽƌƚƐŽƵƌƐƚƌĂƚĞŐLJƚŽĞdžƉĂŶĚŽƵƌĂƐƐĞŵďůLJĐĂƉĂĐŝƚLJƚŽĐĂƚĞƌĨŽƌƚŚĞĚŽŵĞƐƚŝĐŵĂƌŬĞƚǁŝƚŚ
ƚŚĞŶĞǁĞƐƚĐĂƉĂďŝůŝƚŝĞƐŝŶĞŶŐŝŶĞĂƐƐĞŵďůLJƚĞĐŚŶŽůŽŐLJ͕ĂŶĚƐƵƉƉŽƌƚƐDt͛ƐĞdžƉŽƌƚŝŶŝƚŝĂƚŝǀĞƐƚŽŽƚŚĞƌ^E
ŵĂƌŬĞƚƐ͘
 INSIDE THIS REPORT
pages

59-67
UE
Creating Sustainable Value AL
EV
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dŚŝƐƐĞĐƟŽŶƉƌŽǀŝĚĞƐĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽŶ IN
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Statements and Performance Reports for

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Sime Darby Berhad will be held at the
Grand Ballroom, First Floor, Sime Darby
ŽŶǀĞŶƟŽŶĞŶƚƌĞ͕ϭ͕:ĂůĂŶƵŬŝƚ<ŝĂƌĂϭ͕
ϲϬϬϬϬ<ƵĂůĂ>ƵŵƉƵƌ͕DĂůĂLJƐŝĂŽŶdŚƵƌƐĚĂLJ͕
ϭϱEŽǀĞŵďĞƌϮϬϭϴĂƚϭϬ͘ϬϬĂ͘ŵ͘
 ABOUT THIS
REPORT

REPORTING PHILOSOPHY, PRINCIPLES AND FRAMEWORK

dŚĞ^ŝŵĞĂƌďLJĞƌŚĂĚŶŶƵĂůZĞƉŽƌƚ;͞^Z͟ͿĨŽƌƚŚĞĮŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϬ:ƵŶĞϮϬϭϴŝƐŽƵƌϱth/ŶƚĞŐƌĂƚĞĚZĞƉŽƌƚ;͞/Z͟ͿĂŶĚ
ƚŚĞĮƌƐƚĨŽůůŽǁŝŶŐƚŚĞĐŽŵƉůĞƟŽŶŽĨƚŚĞƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞ͘/ƚƉƌŽǀŝĚĞƐŽƵƌƐƚĂŬĞŚŽůĚĞƌƐǁŝƚŚŝŶĨŽƌŵĂƟŽŶĂďŽƵƚŚŽǁǁĞƉĞƌĨŽƌŵĞĚ
ƚŚƌŽƵŐŚŽƵƚƚŚĞLJĞĂƌ͕ĂŶĚŚŽǁǁĞĂƌĞƉƌŽŐƌĞƐƐŝŶŐĂŐĂŝŶƐƚŽƵƌŵĞĚŝƵŵĂŶĚůŽŶŐͲƚĞƌŵƐƚƌĂƚĞŐŝĐŐŽĂůƐ͘dŚĞ^ZĨŽĐƵƐĞƐŽŶƚƌĂŶƐƉĂƌĞŶĐLJ
ĂŶĚŝƐĐĞŶƚƌĂůƚŽ^ŝŵĞĂƌďLJĞƌŚĂĚ͛ƐƐŚĂƌĞŚŽůĚĞƌĐŽŵŵƵŶŝĐĂƟŽŶƐ͘/ƚƉƌŽǀŝĚĞƐĂƐŶĂƉƐŚŽƚŽĨƚŚĞŚĞĂůƚŚŽĨŽƵƌďƵƐŝŶĞƐƐŽƉĞƌĂƟŽŶƐ͕
ǁŚŝĐŚĞŶĂďůĞƐƐŚĂƌĞŚŽůĚĞƌƐƚŽŵĂŬĞŝŶĨŽƌŵĞĚŝŶǀĞƐƚŵĞŶƚĚĞĐŝƐŝŽŶƐ͘

dŚĞ^ZŐĞŶĞƌĂůůLJĂĚŽƉƚƐƚŚĞ/ŶƚĞƌŶĂƟŽŶĂů/ŶƚĞŐƌĂƚĞĚ
ZĞƉŽƌƟŶŐŽƵŶĐŝů;//ZͿĨƌĂŵĞǁŽƌŬ͘KƵƌƌĞƉŽƌƟŶŐ
ƉƌŽĐĞƐƐĞƐĂŶĚƉƵďůŝĐĂƟŽŶƐŵĞĞƚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞ
DĂůĂLJƐŝĂŶŽĚĞŽŶŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞϮϬϭϳ;D'
ϮϬϭϳͿ͕ƚŚĞDĂŝŶDĂƌŬĞƚ>ŝƐƟŶŐZĞƋƵŝƌĞŵĞŶƚƐ;DD>ZͿ
ŽĨƵƌƐĂDĂůĂLJƐŝĂ^ĞĐƵƌŝƟĞƐĞƌŚĂĚ͕ƚŚĞŽŵƉĂŶŝĞƐĐƚ
ϮϬϭϲ͕ƚŚĞDĂůĂLJƐŝĂŶ&ŝŶĂŶĐŝĂůZĞƉŽƌƟŶŐ^ƚĂŶĚĂƌĚƐĂŶĚ
ƚŚĞ/ŶƚĞƌŶĂƟŽŶĂů&ŝŶĂŶĐŝĂůZĞƉŽƌƟŶŐ^ƚĂŶĚĂƌĚƐ͘
SCOPE AND BOUNDARIES
dŚĞ^ZƉƌĞƐĞŶƚƐĚĞƚĂŝůĞĚŝŶĨŽƌŵĂƟŽŶŽŶƚŚĞ
ƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞǀĂůƵĞͲĐƌĞĂƟŶŐĂĐƟǀŝƟĞƐǁŝƚŚŝŶ
ŽƵƌƌĞƉŽƌƟŶŐďŽƵŶĚĂƌŝĞƐ͘
/ŶƐĞƫŶŐŽƵƌƌĞƉŽƌƟŶŐďŽƵŶĚĂƌŝĞƐ͕ǁĞĐŽŶƐŝĚĞƌĞĚ
ŝŶƚĞƌŶĂůĂŶĚĞdžƚĞƌŶĂůŝŵƉĂĐƚƐ͚͘džƚĞƌŶĂůŝŵƉĂĐƚƐ͛ĂƌŝƐĞŝŶ
ƐŝƚƵĂƟŽŶƐǁŚĞƌĞǁĞĚŽŶŽƚŽǁŶƚŚĞĂƐƐĞƚƐ͕ǁŚĞƌĞǁĞ
ĚŽŶŽƚĚŝƌĞĐƚůLJĞŶŐĂŐĞŽƌĞŵƉůŽLJǁŽƌŬĞƌƐ͕ĂŶĚǁŚĞƌĞǁĞ
ĚŽŶŽƚŽƉĞƌĂƚĞƚŚĞĂƐƐĞƚƐƵŶĚĞƌĂĐŽŶƚƌĂĐƚƵĂůŽďůŝŐĂƟŽŶ͘
͚/ŶƚĞƌŶĂůŝŵƉĂĐƚƐ͛ƌĞůĂƚĞƚŽĂůůŽƉĞƌĂƟŽŶƐĂŶĚĞŶƟƟĞƐ
ŝŶǁŚŝĐŚƚŚĞ'ƌŽƵƉŚĂƐĂĐŽŶƚƌŽůůŝŶŐŝŶƚĞƌĞƐƚĂŶĚǁŚŝĐŚ
ĂƌĞƵŶĚĞƌŽƵƌŵĂŶĂŐĞŵĞŶƚ͘tŚŝůĞǁĞŚĂǀĞĞƐƚĂďůŝƐŚĞĚ
ĐŽŶƐŝƐƚĞŶƚƌĞƉŽƌƟŶŐďŽƵŶĚĂƌŝĞƐĂĐƌŽƐƐĂůůŽĨŽƵƌďƵƐŝŶĞƐƐ
ƉĞƌĨŽƌŵĂŶĐĞŵĞƚƌŝĐƐ͕ǁĞĂůƐŽƌĞƉŽƌƚŽŶĚĞǀĞůŽƉŵĞŶƚƐ͕
ŝŵƉĂĐƚƐĂŶĚĚĂƚĂŽƵƚƐŝĚĞŽƵƌƌĞƉŽƌƟŶŐďŽƵŶĚĂƌŝĞƐ͕ŝĨ
ƚŚĞLJĂƌĞŚŝŐŚůLJŵĂƚĞƌŝĂůƚŽŽƵƌďƵƐŝŶĞƐƐƉĞƌĨŽƌŵĂŶĐĞ͘
dŚĞŝŶĨŽƌŵĂƟŽŶŝŶƚŚŝƐZĞƉŽƌƚƌĞůĂƚĞƐƚŽƚŚĞϮϬϭϴ
ĮŶĂŶĐŝĂůLJĞĂƌ;ϭ:ƵůLJϮϬϭϳƚŽϯϬ:ƵŶĞϮϬϭϴ;͞&zϮϬϭϴ͟ͿͿ
ĂŶĚĞŶĐŽŵƉĂƐƐĞƐĂůůďƵƐŝŶĞƐƐŽƉĞƌĂƟŽŶƐŽĨ^ŝŵĞĂƌďLJ
ĞƌŚĂĚ͕ǁŚŝĐŚŝŶĐůƵĚĞƐŽƉĞƌĂƟŽŶƐŽǀĞƌǁŚŝĐŚǁĞŚĂǀĞ
ĨƵůůĐŽŶƚƌŽů͕ĂƐǁĞůůĂƐĂůůƐƵďƐŝĚŝĂƌŝĞƐĂŶĚůĞĂƐĞĚĨĂĐŝůŝƟĞƐ
ƵŶůĞƐƐƐƚĂƚĞĚŽƚŚĞƌǁŝƐĞ͘ůůƐŝŐŶŝĮĐĂŶƚŝƚĞŵƐŚĂǀĞďĞĞŶ
ƌĞƉŽƌƚĞĚŽŶĂůŝŬĞͲĨŽƌͲůŝŬĞďĂƐŝƐ͖ŶŽŵĂũŽƌƌĞƐƚĂƚĞŵĞŶƚƐ
ǁĞƌĞƉĞƌĨŽƌŵĞĚ͘dŚŝƐZĞƉŽƌƚƐŚŽƵůĚďĞƌĞĂĚƚŽŐĞƚŚĞƌ
ǁŝƚŚƚŚĞŝŶĨŽƌŵĂƟŽŶĂǀĂŝůĂďůĞŽŶŽƵƌǁĞďƐŝƚĞ
ŚƩƉ͗ͬͬǁǁǁ͘ƐŝŵĞĚĂƌďLJ͘ĐŽŵĨŽƌĂĐŽŵƉƌĞŚĞŶƐŝǀĞ
ŽǀĞƌǀŝĞǁŽĨƚŚĞ'ƌŽƵƉ͘
HOW WE CAN FURTHER IMPROVE
^ŝŵĞĂƌďLJĞƌŚĂĚĞŶŐĂŐĞƐǁŝƚŚƐƚĂŬĞŚŽůĚĞƌƐĨƌĞƋƵĞŶƚůLJ
ƚŚƌŽƵŐŚŽƵƚƚŚĞLJĞĂƌ͘dŚŝƐďƵŝůĚƐƚƌƵƐƚĂŶĚĞŶĂďůĞƐƵƐ
ƚŽďĞŚŝŐŚůLJƌĞƐƉŽŶƐŝǀĞƚŽĐŚĂŶŐĞƐŝŶŽƵƌŽƉĞƌĂƟŶŐ
ĞŶǀŝƌŽŶŵĞŶƚ͘
tĞǀĂůƵĞŽƵƌƐƚĂŬĞŚŽůĚĞƌƐ͛ĨĞĞĚďĂĐŬĂŶĚǁĞůĐŽŵĞ
LJŽƵƌĐŽŵŵĞŶƚƐĂŶĚĞŶƋƵŝƌŝĞƐĂďŽƵƚƚŚŝƐƌĞƉŽƌƚ͘
WůĞĂƐĞĐŽŶƚĂĐƚŽƵƌ/ŶǀĞƐƚŽƌZĞůĂƟŽŶƐƚĞĂŵ͗
(603) 7623 2000
ŝŶǀĞƐƚŽƌ͘ƌĞůĂƟŽŶƐΛƐŝŵĞĚĂƌďLJ͘ĐŽŵ

page Ϯ ^/DZzZ,
NAVIGATIONAL ICONS FOR CAPITAL REPORTING OUR USE OF FORWARD-LOOKING STATEMENTS
tĞĂŝŵƚŽŵĂŬĞƚŚĞ^ZŝŶƚĞƌĂĐƟǀĞ͕ĞŶŐĂŐŝŶŐĂŶĚĞĂƐLJƚŽƵŶĚĞƌƐƚĂŶĚ͘ dŚƌŽƵŐŚŽƵƚƚŚĞZĞƉŽƌƚ͕ǁĞƵƐĞĨŽƌǁĂƌĚͲůŽŽŬŝŶŐ
dŽŚĞůƉLJŽƵŶĂǀŝŐĂƚĞĂƌŽƵŶĚŽƵƌZĞƉŽƌƚ͕ǁĞƵƐĞƚŚĞĨŽůůŽǁŝŶŐŶĂǀŝŐĂƟŽŶĂů ƐƚĂƚĞŵĞŶƚƐƚŚĂƚƌĞůĂƚĞƚŽƚŚĞƉůĂŶƐ͕ŽďũĞĐƟǀĞƐ͕
ŝĐŽŶƐƚŽŚŝŐŚůŝŐŚƚŽƵƌƌĞƉŽƌƟŶŐŽĨƚŚĞƐŝdžĐĂƉŝƚĂůƐŽĨǀĂůƵĞĐƌĞĂƟŽŶ͕ĂƐ ŐŽĂůƐ͕ƐƚƌĂƚĞŐŝĞƐ͕ĨƵƚƵƌĞŽƉĞƌĂƟŽŶƐĂŶĚ
ĚĞƐĐƌŝďĞĚŝŶƚŚĞ//Z&ƌĂŵĞǁŽƌŬ͘ ƉĞƌĨŽƌŵĂŶĐĞŽĨŽƵƌŽƌŐĂŶŝƐĂƟŽŶ͘^ƵĐŚƐƚĂƚĞŵĞŶƚƐ
ƵƐƵĂůůLJĐŽŶƚĂŝŶǁŽƌĚƐůŝŬĞ͚ĂŶƟĐŝƉĂƚĞƐ͕͚͛ďĞůŝĞǀĞƐ͕͛
6 CAPITALS ͚ĞƐƟŵĂƚĞƐ͕͚͛ĞdžƉĞĐƚƐ͕͚͛ŝŶƚĞŶĚƐ͕͚͛ŵĂLJ͕͚͛ƉůĂŶƐ͕͛
͚ƉƌŽũĞĐƚƐ͕͚͛ƐŚŽƵůĚ͕͚͛ǁŽƵůĚ͛ĂŶĚ͚ǁŝůů͕͛ĂŵŽŶŐ
ŽƚŚĞƌƐ͘tĞĚŽŶŽƚŝŶƚĞŶĚĨŽƌƚŚĞƐĞƐƚĂƚĞŵĞŶƚƐ
ƚŽďĞŐƵĂƌĂŶƚĞĞƐŽĨĨƵƚƵƌĞŽƉĞƌĂƟŶŐ͕ĮŶĂŶĐŝĂůŽƌ
ŽƚŚĞƌƌĞƐƵůƚƐ͕ĂƐƚŚĞLJŝŶǀŽůǀĞƌŝƐŬƐ͕ƵŶĐĞƌƚĂŝŶƟĞƐ
ĂŶĚĂƐƐƵŵƉƟŽŶƐŝŶƚŚĞŝƌƌĞƉƌĞƐĞŶƚĂƟŽŶŽĨ
ƉŽƐƐŝďůĞƐĐĞŶĂƌŝŽƐ͘ƐƐƵĐŚ͕ĂĐƚƵĂůƌĞƐƵůƚƐĂŶĚ
ŽƵƚĐŽŵĞƐĐŽƵůĚĚŝīĞƌƐŝŐŶŝĮĐĂŶƚůLJĨƌŽŵƚŚŽƐĞ
Financial Manufactured Intellectual
ĞdžƉƌĞƐƐĞĚŽƌŝŵƉůŝĞĚ͘tĞŵĂŬĞŶŽĞdžƉƌĞƐƐŽƌ
ŝŵƉůŝĞĚƌĞƉƌĞƐĞŶƚĂƟŽŶŽƌǁĂƌƌĂŶƚLJƚŚĂƚƚŚĞ
ƌĞƐƵůƚƐĂŶƟĐŝƉĂƚĞĚďLJƚŚĞƐĞĨŽƌǁĂƌĚͲůŽŽŬŝŶŐ
ƐƚĂƚĞŵĞŶƚƐǁŝůůďĞĂĐŚŝĞǀĞĚ͘tĞĂƌĞƵŶĚĞƌŶŽ
ŽďůŝŐĂƟŽŶƚŽƵƉĚĂƚĞĞŝƚŚĞƌƚŚĞƐĞĨŽƌǁĂƌĚͲůŽŽŬŝŶŐ
ƐƚĂƚĞŵĞŶƚƐŽƌƚŚĞŚŝƐƚŽƌŝĐĂůŝŶĨŽƌŵĂƟŽŶƉƌĞƐĞŶƚĞĚ
Social Human Natural ŝŶƚŚŝƐZĞƉŽƌƚ͘

EEh>ZWKZdϮϬϭϴ page 3
SIME DARBY BERHAD
A N N UA L R E P O R T 2018

OUR
BUSINESS
About Sime Darby Berhad
dŚŝƐƐĞĐƟŽŶƉƌĞƐĞŶƚƐĂŶŽǀĞƌǀŝĞǁŽĨ
ŽƵƌŽƌŐĂŶŝƐĂƟŽŶ͕ŐůŽďĂůĨŽŽƚƉƌŝŶƚĂŶĚ
ďƵƐŝŶĞƐƐĂĐƟǀŝƟĞƐ͘

Page 4
At A Glance

Page 6
Group Overview

Page 8
Corporate Structure

Page 9
Business Overview
 SIME DARBY BERHAD
AT A GLANCE

SIME DARBY
INDUSTRIAL
SIME DARBY
MOTORS WHO
WE
Involved in the assembly, import,
ŵŽŶŐƚŚĞǁŽƌůĚ͛ƐůĂƌŐĞƐƚĂƚĞƌƉŝůůĂƌ ĚŝƐƚƌŝďƵƟŽŶĂŶĚƌĞƚĂŝůďƵƐŝŶĞƐƐĞƐ͘
ĚĞĂůĞƌƐ͘KīĞƌƐĂĐŽŵƉƌĞŚĞŶƐŝǀĞ ŵĂũŽƌƉůĂLJĞƌŝŶƚŚĞƐŝĂWĂĐŝĮĐ
variety of equipment and services, ĂƵƚŽŵŽƟǀĞŝŶĚƵƐƚƌLJǁŝƚŚƉƌĞƐĞŶĐĞ
ĨƌŽŵƐĂůĞƐŽĨŶĞǁŵĂĐŚŝŶĞƐ͕ĞŶŐŝŶĞƐ ŝŶϵŵĂƌŬĞƚƐ͘
and used equipment for rental

ARE
across 15 countries and territories
ƚŚƌŽƵŐŚŽƵƚƚŚĞƐŝĂWĂĐŝĮĐƌĞŐŝŽŶ͘

&/EE/>EEKEͳ&/EE/>,/',>/',d^

^/DZzZ,;'ZKhWͿ

ZsEh* RM MILLION
33,828 FY2017 31,087

WZK&/d&KZ
/EdZ^dEdy*
RM MILLION
1,074 FY2017 784

EdWZK&/d* RM MILLION
618 FY2017 615

>K^dd/D/E:hZz INCIDENTS PER MILLION

&ZYhEzZd MAN-HOURS WORKED 1.90 FY2017 2.32

*
 ŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐ

KWZd/KE>,/',>/',d^

/Eh^dZ/>
2.7 FY2017 1.5 81,741
DKdKZ^
KƌĚĞƌŽŽŬ
Units sold FY2017 83,974
(RM billion)

page 4 SIME DARBY BERHAD

^ŝŵĞĂƌďLJĞƌŚĂĚŝƐƚŚĞ
ƉĂƌƚŶĞƌŽĨĐŚŽŝĐĞĨŽƌƚŚĞ

SIME DARBY RAMSAY

ǁŽƌůĚ͛ƐďĞƐƚďƌĂŶĚƐŝŶƚŚĞ
/ŶĚƵƐƚƌŝĂůĂŶĚDŽƚŽƌƐƐĞĐƚŽƌƐ͘
tŝƚŚŽƉĞƌĂƟŽŶƐŝŶϭϴ
ĐŽƵŶƚƌŝĞƐĂŶĚƚĞƌƌŝƚŽƌŝĞƐ
ĂĐƌŽƐƐƐŝĂWĂĐŝĮĐ͕ǁĞ
ĐŽŶƟŶƵĞƚŽŐƌŽǁ͕ĚĞůŝǀĞƌŝŶŐ
ƐƵƐƚĂŝŶĂďůĞǀĂůƵĞƚŽŽƵƌ
ƐƚĂŬĞŚŽůĚĞƌƐƚŚƌŽƵŐŚ
ŽƉĞƌĂƟŽŶĂůĞdžĐĞůůĞŶĐĞ͕ŚŝŐŚ
ƉĞƌĨŽƌŵĂŶĐĞƐƚĂŶĚĂƌĚƐĂŶĚ
ŐŽŽĚĐŽƌƉŽƌĂƚĞŐŽǀĞƌŶĂŶĐĞ͘
&ŽƵŶĚĞĚŝŶϭϵϭϬ͕^ŝŵĞĂƌďLJ
ĞƌŚĂĚƚŽĚĂLJŚĂƐĂǁŽƌŬĨŽƌĐĞ
ŽĨŽǀĞƌϮϬ͕ϬϬϬĞŵƉůŽLJĞĞƐ͘
LOGISTICS
/ŶǀŽůǀĞĚŝŶWŽƌƚƐΘ>ŽŐŝƐƟĐƐŝŶ
^ŚĂŶĚŽŶŐ͕ĂƐƚĞƌŶŚŝŶĂ͕ǁŝƚŚ
ŽƉĞƌĂƟŽŶƐŝŶtĞŝĨĂŶŐĂŶĚ:ŝŶŝŶŐ͘
SIME DARBY
HEALTH CARE
ZĂŵƐĂLJ^ŝŵĞĂƌďLJ,ĞĂůƚŚĂƌĞŝƐ
ĂϱϬ͗ϱϬũŽŝŶƚǀĞŶƚƵƌĞǁŝƚŚZĂŵƐĂLJ
,ĞĂůƚŚĂƌĞ>ŝŵŝƚĞĚ͘ĞůŝǀĞƌƐĂǁĂƌĚ
ǁŝŶŶŝŶŐ͕ĞdžĐĞƉƟŽŶĂů͕ƉŝŽŶĞĞƌŝŶŐ
healthcare at the forefront of
ŵĞĚŝĐĂůƉƌĂĐƟĐĞŝŶƚŚĞƌĞŐŝŽŶ͕
ƵƟůŝƐŝŶŐƚŚĞůĂƚĞƐƚŝŶŵĞĚŝĐĂů
ƚĞĐŚŶŽůŽŐŝĞƐĂƚŝŶƚĞƌŶĂƟŽŶĂůůLJ
accredited hospitals in Malaysia
ĂŶĚ/ŶĚŽŶĞƐŝĂ͘

/Eh^dZ/> DKdKZ^ >K'/^d/^ Kd,Z^

ZsEh RM MILLION
13,041 20,341 341 105
WZK&/d&KZ
/EdZ^dEdy
RM MILLION
612 543 74 (155)
>K^dd/D/E:hZz
1.87
INCIDENTS PER MILLION
&ZYhEzZd MAN-HOURS WORKED 2.13 1.48 -

>K'/^d/^ For more on our divisional performance,

32.6 FY2017 31.1

General cargo
ƐĞĞƉĂŐĞƐϯϱƚŽϱϴ͘
throughput
(million MT)

ANNUAL REPORT 2018 page 5

 GROUP
OVERVIEW

ϭ ϰ

ϱ
Ϯ 3

6
9

7 ϭϬ
8
ϭϮ

ϭϭ

ϭϯ

/ŶĚƵƐƚƌŝĂů DŽƚŽƌƐ >ŽŐŝƐƟĐƐ ,ĞĂůƚŚĐĂƌĞ

ϭ China 7 Malaysia ϭϯ Christmas Island

Ϯ Macau 8 Singapore ϭϰ Australia
3 Hong Kong 9 Vietnam ϭϱ Papua New Guinea
ϰ South Korea ϭϬ Brunei ϭϲ Solomon Islands
ϱ Taiwan ϭϭ Indonesia ϭϳ New Caledonia
6 Thailand ϭϮ Maldives ϭϴ New Zealand

page 6 SIME DARBY BERHAD

^/DZzZ,
 eighteen INDUSTRIAL

Countries & Territories;ϭͿ

8,119
^ƚĂī^ƚƌĞŶŐƚŚ

20,249 MOTORS

10,403
Employees ;ϮͿ

^ƚĂī^ƚƌĞŶŐƚŚ

LOGISTICS

952
^ƚĂī^ƚƌĞŶŐƚŚ

ϭϱ ϭϲ

ϭϳ

ϭϰ

EŽƚĞƐ͗
;ϭͿ 'ĞŽŐƌĂƉŚŝĐĂůĨŽŽƚƉƌŝŶƚĚĞĮŶĞĚ
ĂƐůŽĐĂƟŽŶƐŝŶǁŚŝĐŚ^ŝŵĞĂƌďLJ
ĞƌŚĂĚŚĂƐĂƐƐĞƚƐŽƌĞŵƉůŽLJĞĞƐ͕
ĂŶĚŝŶĐůƵĚĞƐ:sŽƉĞƌĂƟŽŶƐ
;ŝ͘Ğ͘ZĂŵƐĂLJ^ŝŵĞĂƌďLJ,ĞĂůƚŚ
ϭϴ ĂƌĞΖƐŽƉĞƌĂƟŽŶƐŝŶ/ŶĚŽŶĞƐŝĂͿ͘
;ϮͿ ƐĂƚϯϬ:ƵŶĞϮϬϭϴ͘/ŶĐůƵĚĞƐ'ƌŽƵƉ
,ĞĂĚKĸĐĞ͕/ŶĚƵƐƚƌŝĂů͕DŽƚŽƌƐ͕
>ŽŐŝƐƟĐƐĂŶĚŽƚŚĞƌďƵƐŝŶĞƐƐĞƐ͘
džĐůƵĚĞƐĞŵƉůŽLJĞĞƐŽĨZĂŵƐĂLJ
^ŝŵĞĂƌďLJ,ĞĂůƚŚĂƌĞ͘

ANNUAL REPORT 2018

EEh>ZWKZdϮϬϭϴ page 7
 CORPORATE
STRUCTURE

Industrial Motors >ŽŐŝƐƟĐƐ Healthcare & Others

100% 100% 100% 50%

^ŝŵĞĂƌďLJ/ŶĚƵƐƚƌŝĂů ^ŝŵĞĂƌďLJDŽƚŽƌƐ ^ŝŵĞĂƌďLJKǀĞƌƐĞĂƐ ZĂŵƐĂLJ^ŝŵĞĂƌďLJ
,ŽůĚŝŶŐƐ^ĚŶŚĚ ^ĚŶŚĚ ;,<Ϳ>ŝŵŝƚĞĚ ,ĞĂůƚŚĂƌĞ^ĚŶŚĚ
100% 51% - 100% 99%
100%
^ŝŵĞĂƌďLJ/ŶĚƵƐƚƌŝĂů DĂůĂLJƐŝĂŶŽƉĞƌĂƟŽŶƐ tĞŝĨĂŶŐ^ŝŵĞĂƌďLJ
^ĚŶŚĚ WŽƌƚŽ>ƚĚ ^ŝŵĞĂƌďLJ'ůŽďĂů
^ĞƌǀŝĐĞƐĞŶƚƌĞ^ĚŶŚĚ
100%
100% 70%
^ŝŵĞĂƌďLJDŽƚŽƌ 60% - 100%
^ŝŵĞĂƌďLJ/ŶĚƵƐƚƌŝĂů ,ŽůĚŝŶŐƐ>ŝŵŝƚĞĚ :ŝŶŝŶŐ^ŝŵĞĂƌďLJ
;^ŝŶŐĂƉŽƌĞͿ WŽƌƚŽ>ƚĚ /ŶƐƵƌĂŶĐĞďƵƐŝŶĞƐƐ
^ŝŶŐĂƉŽƌĞWƚĞ>ƚĚ

100% 30%
100%
Sime Darby dĞƐĐŽ^ƚŽƌĞƐ;DĂůĂLJƐŝĂͿ
^ŝŵĞĂƌďLJ> ;dŚĂŝůĂŶĚͿ>ŝŵŝƚĞĚ ^ĚŶŚĚ
;^ŽƵƚŚŚŝŶĂͿ>ŝŵŝƚĞĚ
100% 12%
100% ĂƐƚĞƌŶΘKƌŝĞŶƚĂůĞƌŚĂĚ
^ŝŵĞĂƌďLJDŽƚŽƌ
^ŝŵĞĂƌďLJ/ŶĚƵƐƚƌŝĂů 'ƌŽƵƉ;EͿ>ŝŵŝƚĞĚ
ƵƐƚƌĂůŝĂWƚLJ>ƚĚ
100%
^ŝŵĞĂƌďLJDŽƚŽƌƐ'ƌŽƵƉ
;ƵƐƚƌĂůŝĂͿWƚLJ>ŝŵŝƚĞĚ

100%
^ŝŵĞĂƌďLJDŽƚŽƌ
'ƌŽƵƉ;,<Ϳ>ŝŵŝƚĞĚ

EŽƚĞ͗ WůĞĂƐĞƌĞĨĞƌƚŽ
/ŶƚĞƌŵĞĚŝĂƚĞŚŽůĚŝŶŐĐŽŵƉĂŶŝĞƐŶŽƚŝŶĐůƵĚĞĚ͘ WĂŐĞƐϮϲϰƚŽϯϬϭ
ĨŽƌŽƵƌƐƵďƐŝĚŝĂƌLJůŝƐƚ͘

page 8 SIME DARBY BERHAD

BUSINESS
OVERVIEW

ͻ ŽŵƉƌĞŚĞŶƐŝǀĞƌĂŶŐĞŽĨĞƋƵŝƉŵĞŶƚĂŶĚƐĞƌǀŝĐĞƐ͗ŶĞǁĂŶĚƵƐĞĚŵĂĐŚŝŶĞĂŶĚĞŶŐŝŶĞƐĂůĞƐ͕
ƌĞŶƚĂůĂŶĚĨƵůůƌĂŶŐĞŽĨƉƌŽĚƵĐƚƐĂŶĚƐƵƉƉŽƌƚƐĞƌǀŝĐĞƐ
ͻ EĞƚǁŽƌŬŽĨϭϯϭďƌĂŶĐŚĞƐƚŚƌŽƵŐŚŽƵƚƐŝĂWĂĐŝĮĐ
ͻ ůƐŽƉƌŽǀŝĚĞƐĐŽŵƉƌĞŚĞŶƐŝǀĞƌĂŶŐĞŽĨŝŶĚƵƐƚƌŝĂůƐŽůƵƟŽŶƐǀŝĂĂůůŝĞĚďƌĂŶĚƐĂŶĚĞŶĞƌŐLJ
ƐŽůƵƟŽŶƐ
Industrial ͻ ĂƚĞƌƉŝůůĂƌĚĞĂůĞƌƐŝŶĐĞϭϵϮϵĂŶĚŝƐƚŚĞƚŚŝƌĚůĂƌŐĞƐƚĂƚĞƌƉŝůůĂƌĚĞĂůĞƌŐůŽďĂůůLJ

ͻ ZĞƚĂŝů͕ĚŝƐƚƌŝďƵƟŽŶĂŶĚĂƐƐĞŵďůLJŽĨŵŽƚŽƌǀĞŚŝĐůĞƐ
ͻ WƌĞƐĞŶĐĞŝŶϵŵĂƌŬĞƚƐĂĐƌŽƐƐƐŝĂWĂĐŝĮĐ͕ǁŝƚŚŽǀĞƌϰϬLJĞĂƌƐ͛ĞdžƉĞƌŝĞŶĐĞ
ͻ ZĞƉƌĞƐĞŶƚƐŵŽƌĞƚŚĂŶϯϬďƌĂŶĚƐ͕ƌĂŶŐŝŶŐĨƌŽŵůƵdžƵƌLJďƌĂŶĚƐ;Ğ͘Ő͘Dt͕WŽƌƐĐŚĞ͕
ZŽůůƐͲZŽLJĐĞͿƚŽďƌŽĂĚͲĂƉƉĞĂůŵĂƌŬĞƚďƌĂŶĚƐ;Ğ͘Ő͘&ŽƌĚ͕,LJƵŶĚĂŝ͕DĂnjĚĂͿ͕ĂƐǁĞůůĂƐ
ĐŽŵŵĞƌĐŝĂůǀĞŚŝĐůĞƐ;Ğ͘Ő͘sŽůǀŽdƌƵĐŬƐ͕&ƵƐŽ͕,ŝŶŽĂŶĚDĂĐŬͿ
Motors ͻ DtĚĞĂůĞƌƐŝŶĐĞϭϵϳϮĂŶĚŽŶĞŽĨƚŚĞůĂƌŐĞƐƚDtĚĞĂůĞƌŐƌŽƵƉƐŝŶƚŚĞǁŽƌůĚ

ͻ WŽƌƚƐĂŶĚ>ŽŐŝƐƟĐƐŝŶ^ŚĂŶĚŽŶŐ͕ĂƐƚĞƌŶŚŝŶĂ
ͻ tĞŝĨĂŶŐWŽƌƚʹĚƌLJďƵůŬ͕ďƌĞĂŬďƵůŬ͕ůŝƋƵŝĚďƵůŬ͕ŐĞŶĞƌĂůĐĂƌŐŽ͕ĐŽŶƚĂŝŶĞƌĂŶĚƐƚŽƌĂŐĞƐĞƌǀŝĐĞƐ
ͻ :ŝŶŝŶŐWŽƌƚƐ;ϯƉŽƌƚƐͿʹ^ƚĞǀĞĚŽƌŝŶŐĂŶĚƐƚŽƌĂŐĞƐĞƌǀŝĐĞƐĨŽƌĐŽĂůĂŶĚĐŽĂůͲƌĞůĂƚĞĚƉƌŽĚƵĐƚƐ
>ŽŐŝƐƟĐƐ

ͻ ϱϬ͗ϱϬũŽŝŶƚǀĞŶƚƵƌĞǁŝƚŚZĂŵƐĂLJ,ĞĂůƚŚĂƌĞ>ŝŵŝƚĞĚĨŽƌƚŚĞŵĂŶĂŐĞŵĞŶƚŽĨŚŽƐƉŝƚĂůƐĂŶĚ
ƉƌŽǀŝƐŝŽŶŽĨŚĞĂůƚŚĐĂƌĞƐĞƌǀŝĐĞƐ
,ĞĂůƚŚĐĂƌĞ

ͻ ϯϬйƐƚĂŬĞŝŶdĞƐĐŽDĂůĂLJƐŝĂ
ͻ ϭϮйƐƚĂŬĞŝŶĂƐƚĞƌŶΘKƌŝĞŶƚĂů
ͻ WƌŽǀŝƐŝŽŶŽĨƐŚĂƌĞĚƐĞƌǀŝĐĞƐƚŚƌŽƵŐŚ^ŝŵĞĂƌďLJ'ůŽďĂů^ĞƌǀŝĐĞƐĞŶƚƌĞ^ĚŶŚĚ
ͻ /ŶƐƵƌĂŶĐĞďƌŽŬŝŶŐƐĞƌǀŝĐĞƐŝŶDĂůĂLJƐŝĂ͕^ŝŶŐĂƉŽƌĞĂŶĚ,ŽŶŐ<ŽŶŐ
Others

ANNUAL REPORT 2018 page 9

SIME DARBY BERHAD
A N N UA L R E P O R T 2018

MANAGEMENT
DISCUSSION
& ANALYSIS:
STRATEGIC
REVIEW
Our Strategy
dŚŝƐƐĞĐƟŽŶŽīĞƌƐĂŶŝŶƐŝŐŚƚŝŶƚŽŽƵƌ
^ƚƌĂƚĞŐLJĂŶĚŽƵƚůŝŶĞƐŽƵƌƵƐŝŶĞƐƐ
DŽĚĞů͕KƉĞƌĂƟŶŐŶǀŝƌŽŶŵĞŶƚ
ĂŶĚ<ĞLJZŝƐŬĂŶĚKƉƉŽƌƚƵŶŝƟĞƐ͕ƚŽ
ƵŶĚĞƌƐƚĂŶĚŚŽǁǁĞĐƌĞĂƚĞǀĂůƵĞĨŽƌ
ŽƵƌƐƚĂŬĞŚŽůĚĞƌƐ͘

Page 10
How We Create Strategic Value

Page 12
sĂůƵĞƌĞĂƟŽŶWůĂŶ

Page 14
Our Business Environment

Page 17
Engaging With Our Stakeholders

Page 18
Enterprise Risk Management
 HOW WE CREATE
STRATEGIC VALUE

KEY PARTNERS INPUTS

Capitals ŽŵƉŽŶĞŶƚƐŽĨǀĂůƵĞĐƌĞĂƟŽŶ

Finance
• KƉƟŵĂůĐĂƉŝƚĂůƐƚƌƵĐƚƵƌĞ
• ĐĐĞƐƐƚŽĐĂƉŝƚĂů
Financial • ZŝŐŽƌŽƵƐŝŶǀĞƐƚŵĞŶƚƉƌŽĐĞƐƐ

U ST RI A
IN D L &ĂĐŝůŝƟĞƐĂŶĚŝŶĨƌĂƐƚƌƵĐƚƵƌĞ
ͻ ĞƐƚͲŝŶͲĐůĂƐƐƐŚŽǁƌŽŽŵƐ
ͻ džƚĞŶƐŝǀĞĂŌĞƌͲƐĂůĞƐĨĂĐŝůŝƟĞƐ
Manufactured ͻ >ĞĂĚŝŶŐĂƐƐĞŵďůLJƉůĂŶƚƐ
ͻ tŝĚĞŐĞŽŐƌĂƉŚŝĐĂůĨŽŽƚƉƌŝŶƚ

STRATEGIC PLANNING MODEL

WƌŽĚƵĐƚƐ͕ƐLJƐƚĞŵƐĂŶĚďƵƐŝŶĞƐƐƉůĂƞŽƌŵƐ
• WƌŽǀŝĚĞĚďLJůĞĂĚŝŶŐƉƌŝŶĐŝƉĂůƐ
• /ŶƚĞƌŶĂůůLJĚĞǀĞůŽƉĞĚƐLJƐƚĞŵƐ
M O TO R S
Intellect
Intellectual ͻ ĞĞƉĞdžƉĞƌŝĞŶĐĞŝŶƐŝĂWĂĐŝĮĐ
ͻ ,ŝŐŚůLJĞdžƉĞƌŝĞŶĐĞĚŵĂŶĂŐĞŵĞŶƚƚĞĂŵǁŝƚŚŚŝŐŚŝŶƚĞŐƌŝƚLJ
ĂŶĚƉƌŽĨĞƐƐŝŽŶĂůŝƐŵ

ƵŝůĚŝŶŐůŽŶŐͲƚĞƌŵƌĞůĂƟŽŶƐŚŝƉƐ
ͻ WƌŝŶĐŝƉĂůƐ͕ƐƵƉƉůŝĞƌƐ͕ĐƵƐƚŽŵĞƌƐ͕ĞŵƉůŽLJĞĞƐ͕ŝŶǀĞƐƚŽƌƐ͕
ĐŽŵŵƵŶŝƟĞƐĂŶĚŐŽǀĞƌŶŵĞŶƚƐ
Social
A LT H C A R
HE E

People
ͻ ,ŝŐŚƉĞƌĨŽƌŵŝŶŐĂŶĚĚŝǀĞƌƐĞƚĂůĞŶƚƉŽŽů
Human

Natural resources
ͻ 'ůŽďĂůĐŽŵŵŽĚŝƟĞƐ
ͻ tĂƚĞƌ
Natural ͻ >ĂŶĚ

page ϭϬ SIME DARBY BERHAD

 Our partnerships, scale and experience
allow us to provide optimal pricing and
highest service quality

ACTIVITY STRATEGIC OUTPUTS OUTCOMES

FOCUS AREAS

Value adding elements <ĞLJƉƌŽĚƵĐƚƐ͕ƐŽůƵƟŽŶƐĂŶĚŝŵƉĂĐƚ Impact on stakeholders

Financial output Investors͗tĞĐŽŶƟŶƵĞƚŽďĞĂƚƌƵƐƚĞĚ

ŝ͘ ZK/ŽĨϨ͘Ϥй ĂŶĚƐƚĂďůĞŝŶǀĞƐƚŵĞŶƚƉƌŽƉŽƐŝƟŽŶ
PROVIDE WIDE ŝŝ͘ ŽƌĞŶĞƚƉƌŽĮƚŽĨZDϪϥϧŵŝůůŝŽŶ ĨŽƌƐŚĂƌĞŚŽůĚĞƌƐǁŚŽĂƌĞĚƌŝǀĞŶ
SELECTION Financial ŝŝŝ͘ ϦϥйƚŽƚĂůƐŚĂƌĞŚŽůĚĞƌƐƌĞƚƵƌŶ ďLJĐŽŶƐŝƐƚĞŶƚƉĞƌĨŽƌŵĂŶĐĞĂŶĚĂƌĞ
OF PRODUCTS AT Returns ƐŝŶĐĞƚŚĞƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞ ƉƌŽƚĞĐƚĞĚďLJŽƵƌƐƚƌŽŶŐƐƵƐƚĂŝŶĂďŝůŝƚLJ͕
COMPETITIVE PRICES ŐŽǀĞƌŶĂŶĐĞĂŶĚƌŝƐŬĨŽĐƵƐ͘KƵƌƚƌĂĐŬ
Business expansion output ƌĞĐŽƌĚĂŶĚĚŝƐĐŝƉůŝŶĞĚŝŶǀĞƐƚŵĞŶƚ
ŝ͘ ƐƚĂďůŝƐŚĞĚĂDtĞŶŐŝŶĞ ƐƚƌĂƚĞŐLJƉƌŽǀŝĚĞƐŐƌĞĂƚĞƌĂĐĐĞƐƐƚŽ
ĂƐƐĞŵďůLJƉůĂŶƚǁŚŝĐŚŝƐƚŚĞ ŐƌŽǁƚŚŽƉƉŽƌƚƵŶŝƟĞƐ͕ƚƌĂŶƐůĂƟŶŐƚŽ
ƐĞĐŽŶĚŝŶ^ŽƵƚŚĞĂƐƚƐŝĂ ƐƵƐƚĂŝŶĂďůĞƐŚĂƌĞŚŽůĚĞƌƌĞƚƵƌŶƐ͘
ŝŝ͘ ĐƋƵŝƌĞĚ&ŝĂƚ͕ůĨĂZŽŵĞŽΘ
HIGH QUALITY WƌŽĮƚĂďůĞ sŽůǀŽĚĞĂůĞƌƐŚŝƉƐŝŶƵƐƚƌĂůŝĂ Customers͗tĞŽīĞƌĂĚĚĞĚǀĂůƵĞĨƌŽŵ
SERVICE AND Growth ĚŝīĞƌĞŶƟĂƚĞĚĂŶĚŝŶŶŽǀĂƟǀĞƉƌŽĚƵĐƚƐ
ASSURANCE OF /ŶĚƵƐƚƌŝĂůĂŶĚĂƵƚŽŵŽƟǀĞƐŽůƵƟŽŶƐŝŶ ďLJǁŽƌůĚĐůĂƐƐďƌĂŶĚƐĂŶĚŚŝŐŚƋƵĂůŝƚLJ
ORIGINAL PARTS Ă͘ DŝŶŝŶŐ ƐĞƌǀŝĐĞƚŚĂƚĐƵƐƚŽŵĞƌƐĐĂŶƌĞůLJŽŶ͘
ď͘ /ŶĨƌĂƐƚƌƵĐƚƵƌĞ
Đ͘ WŽǁĞƌƐLJƐƚĞŵƐ Environment͗tĞĂŝŵƚŽŵŝŶŝŵŝƐĞ
Ě͘ ^ƵƉĞƌͲůƵdžƵƌLJƉƌŝǀĂƚĞǀĞŚŝĐůĞƐ ƚŚĞŝŵƉĂĐƚŽĨŽƵƌďƵƐŝŶĞƐƐĞƐŽŶƚŚĞ
Ğ͘ >ƵdžƵƌLJƉƌŝǀĂƚĞǀĞŚŝĐůĞƐ ĞŶǀŝƌŽŶŵĞŶƚ͘
/ŶŶŽǀĂƟǀĞ Ĩ͘ DĂƐƐŵĂƌŬĞƚƉƌŝǀĂƚĞǀĞŚŝĐůĞƐ
ƵƐƚŽŵĞƌ^ŽůƵƟŽŶƐ Ő͘ ŽŵŵĞƌĐŝĂůǀĞŚŝĐůĞƐ Employees͗tĞƉƌŽŵŽƚĞĂŶ
BRINGING WORLD Ś͘ ŌĞƌͲƐĂůĞƐĂŶĚƉĂƌƚƐ ĞŶǀŝƌŽŶŵĞŶƚƚŚĂƚŵŽƟǀĂƚĞƐŽƵƌ
LEADING MARQUES ŝ͘ ZĞŶƚĂů ĞŵƉůŽLJĞĞƐůĞĚďLJŽƵƌĐĂƉĂďůĞĂŶĚ
INTO ASIA ũ͘ 'ĞŽŐƌĂƉŚŝĐĂůƐƉƌĞĂĚ ĞīĞĐƟǀĞŵĂŶĂŐĞŵĞŶƚƚĞĂŵ͕ĞŶĂďůŝŶŐ
ŝ͘ /ŶĚƵƐƚƌŝĂů͗EĞƚǁŽƌŬŽĨϣϥϣ ŽƵƌƉĞŽƉůĞƚŽĂĐŚŝĞǀĞƚŚĞŝƌĐĂƌĞĞƌ
ďƌĂŶĐŚĞƐƚŚƌŽƵŐŚŽƵƚƐŝĂWĂĐŝĮĐ ĂƐƉŝƌĂƟŽŶƐǁŚŝůĞĚƌŝǀŝŶŐƚŚĞ'ƌŽƵƉ͛Ɛ
ŝŝ͘ DŽƚŽƌƐ͗DŽƌĞƚŚĂŶϥϢďƌĂŶĚƐ ŐƌŽǁƚŚ͘
ĂĐƌŽƐƐϫŵĂƌŬĞƚƐ͕ϣϥϧŽƵƚůĞƚƐ
Sustainable ŝŶƐŝĂWĂĐŝĮĐ 'ŽǀĞƌŶŵĞŶƚƐΘŽŵŵƵŶŝƟĞƐ͗
Development ŝŝŝ͘ ,ĞĂůƚŚĐĂƌĞ͗ϨƉƌĞŵŝƵŵŚŽƐƉŝƚĂůƐ tĞŽƉĞƌĂƚĞƌĞƐƉŽŶƐŝďůLJ͕ƚŽĚĞůŝǀĞƌ
LOCAL ASSEMBLY ŝŶDĂůĂLJƐŝĂĂŶĚ/ŶĚŽŶĞƐŝĂ ŐƌŽǁƚŚĂŶĚůŽŶŐͲƚĞƌŵǀĂůƵĞƚŽƚŚĞ
TO INCREASE ĞĐŽŶŽŵLJĂŶĚƐŽĐŝĞƚLJƚŚƌŽƵŐŚũŽď
COMPETITIVE People ĐƌĞĂƟŽŶ͕ƚĂdžĐŽŶƚƌŝďƵƟŽŶƐĂŶĚ
PRODUCT PRICING ,ŝŐŚƉƌŽĚƵĐƟǀŝƚLJƚŚƌŽƵŐŚŽƉĞƌĂƟŽŶĂů ĚŝǀŝĚĞŶĚƐƚŽŐŽǀĞƌŶŵĞŶƚĨƵŶĚƐ͘tĞ
ĞdžĐĞůůĞŶĐĞĂŶĚĐŽŶƟŶƵŽƵƐĐĂƉĂďŝůŝƚLJ ƉƌŽƵĚůLJŇLJƚŚĞ͞DĂůĂLJƐŝĂ/ŶĐ͟ďƌĂŶĚ
ĚĞǀĞůŽƉŵĞŶƚ͘ ǁŽƌůĚǁŝĚĞ͘
Diversity and
Inclusion Suppliers & Business Partners͗
tĞďĞůŝĞǀĞŝŶĚĞǀĞůŽƉŝŶŐůŽŶŐͲƚĞƌŵ
ENABLE
ƌĞůĂƟŽŶƐŚŝƉƐǁŝƚŚŽƵƌƉƌŝŶĐŝƉĂůƐ͕
SHAREHOLDERS ƐƵƉƉůŝĞƌƐĂŶĚďƵƐŝŶĞƐƐƉĂƌƚŶĞƌƐ͕ŝŶ
ACCESS TO WORLD ŽƌĚĞƌƚŽĐƌĞĂƚĞŐƌĞĂƚĞƌǀĂůƵĞĨƌŽŵ
CLASS BUSINESSES ƚŚĞƐŚĂƌŝŶŐŽĨŽƵƌĐĂƉĂďŝůŝƟĞƐĂŶĚ
ACROSS ASIA PACIFIC ƌĞƐŽƵƌĐĞƐƚŽĂĐŚŝĞǀĞĂĐŽŵŵŽŶŐŽĂů͘

People

ANNUAL REPORT 2018 page ϭϭ

 VALUE
CREATION PLAN

TO BE THE LEADING ͻ KŶĞŽĨƚŚĞůĂƌŐĞƐƚDtĚĞĂůĞƌƐŝŶƚŚĞǁŽƌůĚ

ͻ DŽƌĞƚŚĂŶϯϬďƌĂŶĚƐƌĞƉƌĞƐĞŶƚĞĚŝŶƚŚĞƐŝĂ
Motors and Industrial player MOTORS WĂĐŝĮĐƌĞŐŝŽŶ
in Asia Pacific ͻ ^ĞůůƐŵŽƌĞƚŚĂŶϴϬ͕ϬϬϬǀĞŚŝĐůĞƐĂLJĞĂƌ

REVENUE COST ORGANIC BUSINESS

ENHANCEMENT OPTIMISATION EXPANSION

INDUSTRIAL INDUSTRIAL INDUSTRIAL

• ŶŚĂŶĐĞĚƐĂůĞƐĨƌŽŵŵŝŶŝŶŐ
ƌĞĐŽǀĞƌLJĂŶĚŝŶĨƌĂƐƚƌƵĐƚƵƌĞ
ƐƉĞŶĚŝŶŐ
• ŝŐŝƚĂůŝƐĂƟŽŶĂƐĂŶĞŶĂďůĞƌ
ƚŽŝŶĐƌĞĂƐĞĂŶĚƉƌŽƚĞĐƚ
ŵĂƌŬĞƚƐŚĂƌĞ
• 'ƌŽǁƚŚŝŶĂŌĞƌͲƐĂůĞƐ͕ƉĂƌƚƐ
ĂŶĚƐĞƌǀŝĐĞƐ
• KƉĞƌĂƟŽŶĂůĞdžĐĞůůĞŶĐĞƚŽ • džƉĂŶƐŝŽŶŝŶƚŽĂĚũĂĐĞŶƚ
ƐƚƌĞŶŐƚŚĞŶƌĞƐŝůŝĞŶĐĞŝŶ ďƵƐŝŶĞƐƐĞƐĨŽƌĐŽƵŶƚĞƌͲ
ĚŽǁŶĐLJĐůĞƐǀŝĂƉƌŽĐĞƐƐ ĐLJĐůŝĐĂůŝƚLJĂŶĚƚŽŝŶĐƌĞĂƐĞ
ƐƚĂŶĚĂƌĚŝƐĂƟŽŶ͕ƌŽďŽƟĐ ƌĞĐƵƌƌŝŶŐŝŶĐŽŵĞƉƌŽĮůĞ
ƉƌŽĐĞƐƐĂƵƚŽŵĂƟŽŶ͕>ĞĂŶ
^ŝdž^ŝŐŵĂĂŶĚƉƌŽĐƵƌĞŵĞŶƚ
ĐŽŶƚƌŽůƐĂŵŽŶŐŽƚŚĞƌƐ

MOTORS MOTORS MOTORS

ͻ ŶŚĂŶĐĞĚƐĂůĞƐĨƌŽŵŶĞǁ
ŵŽĚĞůĐLJĐůĞ
• &ŽĐƵƐŽŶŐƌŽǁƚŚŽĨƵƐĞĚĐĂƌƐ
ĂŶĚĂŌĞƌͲƐĂůĞƐďƵƐŝŶĞƐƐƚŽ
ŝŵƉƌŽǀĞŵĂƌŐŝŶƐ
• &ŽĐƵƐĞĚƉůĂŶƚŽƚƵƌŶĂƌŽƵŶĚ
ƵŶĚĞƌƉĞƌĨŽƌŵŝŶŐďƵƐŝŶĞƐƐĞƐ
ͻ džƉůŽƌĞŽƉĞƌĂƟŽŶĂů
ĞĸĐŝĞŶĐLJƚŚƌŽƵŐŚ
ĚŝŐŝƚĂůŝƐĂƟŽŶ
ͻ džƉĂŶĚĂƐƐĞŵďůLJĐĂƉĂďŝůŝƚLJ
ĨŽƌĞdžŝƐƟŶŐƉĂƌƚŶĞƌƐĨŽƌƚŚĞ
^EƌĞŐŝŽŶĂŶĚŝŶƚƌŽĚƵĐĞ
ŶĞǁŵĂƌƋƵĞƐƚŽĂƐƐĞŵďůĞ
ĨŽƌůŽĐĂůĂŶĚĞdžƉŽƌƚŵĂƌŬĞƚƐ

REVENUE ENHANCEMENT, COST OPTIMISATION,

page ϭϮ SIME DARBY BERHAD


INDUSTRIAL
MONETISATION OF
EKEͳKZ^^d^
ͻ ŝƐƉŽƐĂůŽĨŶŽŶͲĐŽƌĞ
ďƵƐŝŶĞƐƐĞƐƚŽƐƚƌĞĂŵůŝŶĞ
ƉŽƌƞŽůŝŽĂŶĚƌĞĂůŝƐĞĐĂƐŚ
ͻ ZĞǀŝĞǁŽĨƵŶĚĞƌͲƉĞƌĨŽƌŵŝŶŐ
ďƵƐŝŶĞƐƐĞƐǁŝƚŚŝŶ/ŶĚƵƐƚƌŝĂů
ĂŶĚDŽƚŽƌƐŝǀŝƐŝŽŶƐĨŽƌ
ƌĂƟŽŶĂůŝƐĂƟŽŶ
BUSINESS EXPANSION & PORTFOLIO RATIONALISATION ARE KEY DRIVERS
ANNUAL REPORT 2018
To achieve our targets, we have
developed initiatives to drive earnings,
optimise cost, expand into new markets and
rationalise our portfolio
ͻ KŶĞŽĨƚŚĞůĂƌŐĞƐƚĂƚĞƌƉŝůůĂƌĚĞĂůĞƌƐŝŶƚŚĞǁŽƌůĚ
ͻ KƉĞƌĂƟŶŐŝŶϭϱĐŽƵŶƚƌŝĞƐĂŶĚƚĞƌƌŝƚŽƌŝĞƐ
ͻ KůĚĞƐƚĂƚĞƌƉŝůůĂƌĚĞĂůĞƌƐŚŝƉŝŶƐŝĂ
EXPAND SYNERGISTIC M&A
HEALTHCARE
ͻ džƉĂŶƐŝŽŶŽĨŽƵƌ ͻ džƉůŽƌĞŶĞǁŵĂƌŬĞƚƐƚŽ
ŚĞĂůƚŚĐĂƌĞďƵƐŝŶĞƐƐǀŝĂ ƌĞƉƌĞƐĞŶƚŶĞǁŽƌĞdžŝƐƟŶŐ
ŽƉĞƌĂƟŽŶĂůĞdžĐĞůůĞŶĐĞ͕ ŵĂƌƋƵĞƐ
ĂƐƐĞƚŵĂdžŝŵŝƐĂƟŽŶĂŶĚ
ŵĞƌŐĞƌƐĂŶĚĂĐƋƵŝƐŝƟŽŶƐ ͻdžƉůŽƌĞŽƉƉŽƌƚƵŶŝƟĞƐĨŽƌ
ĞdžƉĂŶƐŝŽŶŝŶƚŽŶĞǁďƵƐŝŶĞƐƐ
ͻ/ŵƉƌŽǀĞƋƵĂůŝƚLJŽĨ ĂĐƟǀŝƟĞƐĨŽƌ/ŶĚƵƐƚƌŝĂůĂŶĚ
ƉƌŽĚƵĐƚƐĂŶĚƐĞƌǀŝĐĞƐĂŶĚ DŽƚŽƌƐŝǀŝƐŝŽŶƐ͕ĐĂƉŝƚĂůŝƐŝŶŐ
ŝŶĐƌĞĂƐĞŝŶͲƉĂƟĞŶƚǀŽůƵŵĞ ŽŶŶĞǁƚĞĐŚŶŽůŽŐŝĞƐĂŶĚ
ŝŶŶŽǀĂƟŽŶ
page ϭϯ
 OUR BUSINESS
ENVIRONMENT

Sime Darby Berhad (SDB) operates in a challenging environment that is prone to commodity cycles, changing consumer preferences and
ƚƌĂĚĞŇŽǁƐ͘

tĞĐŽŶƟŶƵŽƵƐůLJƐĐĂŶŽƵƌďƵƐŝŶĞƐƐĞŶǀŝƌŽŶŵĞŶƚĂŶĚĐůŽƐĞůLJǁĂƚĐŚƚƌĞŶĚƐĂŶĚĚĞǀĞůŽƉŵĞŶƚƐƚŚĂƚŵĂLJĂīĞĐƚŽƵƌŽƉĞƌĂƟŽŶƐ͘KƵƌďƌŽĂĚ
ŐĞŽŐƌĂƉŚŝĐĂůĨŽŽƚƉƌŝŶƚĂŶĚĐŽƌĞďƵƐŝŶĞƐƐĞƐƚŚĂƚŵŽǀĞŝŶůŝŶĞǁŝƚŚĚŝīĞƌĞŶƚŵĂĐƌŽƚƌĞŶĚƐŚĞůƉƵƐŵŝƟŐĂƚĞƚŚĞĞīĞĐƚƐŽĨƚŚĞĞdžƚĞƌŶĂů
ĞŶǀŝƌŽŶŵĞŶƚ͘tĞĐŽŶƐŝĚĞƌĞĐŽŶŽŵŝĐ͕ƐŽĐŝĂů͕ůĞŐĂů͕ƚĞĐŚŶŽůŽŐŝĐĂůĂŶĚƉŽůŝƟĐĂůĨĂĐƚŽƌƐĂŶĚŚĂǀĞƐƚƌƵĐƚƵƌĞĚ^ƚŽĂůůŽǁƵƐƚŽĂĚĂƉƚĂŶĚ
ĐŚĂŶŐĞƋƵŝĐŬůLJƚŽƌĞƐƉŽŶĚƚŽŵĂƌŬĞƚĨŽƌĐĞƐ͘

^ŽŵĞŽĨƚŚĞŵĞŐĂƚƌĞŶĚƐƚŚĂƚĂƌĞĐƵƌƌĞŶƚůLJŽŶŽƵƌƌĂĚĂƌŝŶĐůƵĚĞ͗

MATERIAL MEGATRENDS THAT MAY IMPACT THE BUSINESS

POTENTIAL IMPACT ON OUR
MEGATREND SUPPORTING DATA
BUSINESSES
UPTICK IN COMMODITY CYCLE

Broad-based commodity Commodity price indexes, monthly ^ƚƌŽŶŐĐŽŵŵŽĚŝƚLJƉƌŝĐĞƐǁŝůůůĞĂĚƚŽ

price increases were ŝŶĐƌĞĂƐĞĚĚĞŵĂŶĚĨŽƌŽƵƌ
supported by both demand h^͕ϮϬϭϬсϭϬϬ ŝŶĚƵƐƚƌŝĂůĞƋƵŝƉŵĞŶƚ͕ƉĂƌƚƐĂŶĚ
and supply factors in ƐĞƌǀŝĐĞƐĂƐŽƵƌĐƵƐƚŽŵĞƌƐĞdžƉĂŶĚ
&zϤϢϣϪ͘ƚƉƌĞƐĞŶƚ͕ ϭϲϬ ŽƉĞƌĂƟŽŶƐ͘
ϭϰϬ
ĂĐĐĞůĞƌĂƟŶŐŐůŽďĂůŐƌŽǁƚŚ
ϭϮϬ
ůŝŌĞĚƚŚĞĚĞŵĂŶĚĨŽƌ ĞŵĂŶĚĨƌŽŵƚŚĞƐŝĂŶŵĂƌŬĞƚŝƐ
ϭϬϬ
ĐŽŵŵŽĚŝƟĞƐ͕ǁŚŝůĞĂ ϴϬ
ƉƵƐŚŝŶŐƉƌŝĐĞƐĨŽƌďŽƚŚƚŚĞƌŵĂůĂŶĚ
ŶƵŵďĞƌŽĨĐŽŵŵŽĚŝƟĞƐ ϲϬ ŵĞƚĂůůƵƌŐŝĐĂůĐŽĂůƵƉ͕ĂŶĚĂĐĐŽƌĚŝŶŐƚŽ
faced supply constraints. ϰϬ ĂŶĂůLJƐƚƐ͕ƚŚĞƚƌĞŶĚŝƐƐĞƚƚŽĐŽŶƟŶƵĞ͘
These factors helped ϮϬ
support commodity prices. Ϭ ^ƚƌŽŶŐĐŽĂůƉƌŝĐĞƐǁŝůůƌĞƐƵůƚŝŶ
ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ
ŝŶĐƌĞĂƐĞĚŵŝŶŝŶŐĂĐƟǀŝƚLJĨƌŽŵůĂƌŐĞ
For several years, we have ŵŝŶŝŶŐƉůĂLJĞƌƐ͕ůĞĂĚŝŶŐƚŽƐƚƌŽŶŐĞƌ
seen under-investment ŶĞƌŐLJ ŐƌŝĐƵůƚƵƌĞ ĂƐĞDĞƚĂůƐ;Ğdž͘ŝƌŽŶŽƌĞͿ ĚĞŵĂŶĚĨŽƌŽƵƌĞƋƵŝƉŵĞŶƚ͕ƉĂƌƚƐ
across the mining industry ĂŶĚƐĞƌǀŝĐĞƐ͕ǁŚŝĐŚǁŝůůďĞƉŽƐŝƟǀĞ
and as demand returns, DĞƚŽĂů dŚĞƌŵĂůŽĂů
ĨŽƌŽƵƌƵƐƚƌĂůŝĂŶ/ŶĚƵƐƚƌŝĂůďƵƐŝŶĞƐƐ͘
supply is expected to KƵƌďŝŐŐĞƐƚŵŝŶŝŶŐĐƵƐƚŽŵĞƌƐŽƉĞƌĂƚĞ
ďĞĐŽŶƐƚƌĂŝŶĞĚƵŶƟů ŵĂŝŶůLJŝŶŵĞƚĂůůƵƌŐŝĐĂůĐŽĂů͘
investment in new
equipment and new mines /ŶĨĂĐƚ͕ůĂƌŐĞŵŝŶĞƌƐŚĂǀĞƐƚĂƌƚĞĚ
ĐĂƚĐŚƵƉ͘dŚŝƐŽīĞƌƐŵŝŶŝŶŐ ŝŶũĞĐƟŶŐĐĂƉŝƚĂůƚŽĞdžƉĂŶĚƉƌŽĚƵĐƟŽŶ͕
companies a window of ǁŚŝĐŚŝƐƉŽƐŝƟǀĞĨŽƌŽƵƌďƵƐŝŶĞƐƐ͘
opportunity if they gear up
ƚŚĞŝƌĞdžŝƐƟŶŐŽƉĞƌĂƟŽŶƐ
now.

page ϭϰ SIME DARBY BERHAD

 MATERIAL MEGATRENDS THAT MAY IMPACT THE BUSINESS
POTENTIAL IMPACT ON OUR
MEGATREND SUPPORTING DATA
BUSINESSES
CHANGE IN GLOBAL TRADE SCENE

Trade tensions between Widening trade gap between the US and China tŚŝůĞŚŝŶĂŝƐĂŬĞLJŵĂƌŬĞƚĨŽƌƚŚĞ
the US and China have 'ƌŽƵƉĂŶĚŝƐƚŚĞƐŽƵƌĐĞŽĨϦϢйŽĨŽƵƌ
arisen largely due to the h^ďŝůůŝŽŶ ƌĞǀĞŶƵĞ͕ĂŶLJĚŝƌĞĐƚŝŵƉĂĐƚŵĂLJďĞ
ĞīŽƌƚƐďLJƚŚĞh^ƚŽĐŽƌƌĞĐƚ ϲϬϬ ŵŝƟŐĂƚĞĚĚƵĞƚŽƚŚĞĨŽůůŽǁŝŶŐ͗
the imbalances in trade
between the countries. ϱϬϬ
/ŶĚƵƐƚƌŝĂůʹϫϧйŽĨŽƵƌĞƋƵŝƉŵĞŶƚ
The US has imposed ϰϬϬ ĂƌĞŵĂŶƵĨĂĐƚƵƌĞĚŝŶŚŝŶĂĂŶĚŶŽƚ
ƚŚƌĞĞƌŽƵŶĚƐŽĨƚĂƌŝīƐ ŝŵƉŽƌƚĞĚŝŶƚŽŚŝŶĂ͘KƵƌĂƚĞƌƉŝůůĂƌ
on Chinese products this ϯϬϬ ĞƋƵŝƉŵĞŶƚĂƌĞƐŽƵƌĐĞĚĨƌŽŵŚŝŶĂ͕
LJĞĂƌ͕ƚŽƚĂůůŝŶŐh^ϤϧϢ ϮϬϬ
/ŶĚŽŶĞƐŝĂ͕/ŶĚŝĂ͕dŚĂŝůĂŶĚ͕ƌĂnjŝůĂŶĚ
ďŝůůŝŽŶ͘dŚĞĮƌƐƚƚǁŽ ƚŚĞh<͘
ƌŽƵŶĚƐƉůĂĐĞĚϤϧйƚĂƌŝīƐ ϭϬϬ
ŽŶh^ϧϢďŝůůŝŽŶǁŽƌƚŚ Ϭ
DŽƚŽƌƐʹϩϧйŽĨDtĐĂƌƐŝŶŚŝŶĂ
of imports from China ĂƌĞĂůƌĞĂĚLJĂƐƐĞŵďůĞĚŝŶŚŝŶĂ͕ǁŚŝĐŚ
ϭϵϵϴ
ϭϵϵϵ
ϮϬϬϬ
ϮϬϬϭ
ϮϬϬϮ
ϮϬϬϯ
ϮϬϬϰ
ϮϬϬϱ
ϮϬϬϲ
ϮϬϬϳ
ϮϬϬϴ
ϮϬϬϵ
ϮϬϭϬ
ϮϬϭϭ
ϮϬϭϮ
ϮϬϭϯ
ϮϬϭϰ
ϮϬϭϱ
ϮϬϭϲ
ϮϬϭϳ
and Beijing retaliated in ŝŶĐůƵĚĞŽƵƌďĞƐƚƐĞůůŝŶŐŵŽĚĞůƐ͘
kind. The US delivered a /ŵƉŽƌƚĨƌŽŵŚŝŶĂ džƉŽƌƚƚŽŚŝŶĂ
ƐŚĂƌƉĞƐĐĂůĂƟŽŶŝŶƚĂƌŝīƐ ^ŽƵƌĐĞ͗h^ĞŶƐƵƐƵƌĞĂƵ
EĞǀĞƌƚŚĞůĞƐƐ͕ƚƌĂĚĞƚĞŶƐŝŽŶƐŵĂLJ
in September with a set of ĚĂŵƉĞŶƚŚĞŐůŽďĂůĞĐŽŶŽŵLJĚƵĞƚŽ
ƚĂƌŝīƐŽŶh^ϤϢϢďŝůůŝŽŶ ƌŝƐŝŶŐĐŽƐƚŽĨŽƵƌďƵƐŝŶĞƐƐĞƐ;Wy͕
worth of goods. ŚŝƌŝŶŐ͕ĐŽƐƚĨŽƌŵĂŶƵĨĂĐƚƵƌĞƌƐͿ͘tĞĂƌĞ
ŵŽŶŝƚŽƌŝŶŐƚŚĞĚŝƐĐƵƐƐŝŽŶƐĐůŽƐĞůLJ͘
The concern is that the
trade war between the
two largest countries in the
world could dampen the
global economy.

RAPID ADVANCES IN TECHNOLOGY CHANGING THE BUSINESS LANDSCAPE

dŚĞĂƵƚŽŵŽƟǀĞŝŶĚƵƐƚƌLJ ƐŚŝŌƚŽǁĂƌĚƐŽŶůŝŶĞƐĂůĞƐƉŽƌƚĂůƐ
ĐĐĞůĞƌĂƟŶŐ'ƌŽǁƚŚŝŶdĞĐŚŶŽůŽŐLJ
may undergo a change ŵĂLJŝŵƉĂĐƚŽƵƌďƵƐŝŶĞƐƐĂƐŝƚĂůůŽǁƐ
in consumer mobility ŽƌŝŐŝŶĂůĞƋƵŝƉŵĞŶƚŵĂŶƵĨĂĐƚƵƌĞƌƐƚŽ
ƉĂƩĞƌŶƐƚŚƌŽƵŐŚƌŝĚĞ &ŝƌƐƚϯŚŝƉ
ϯŵŽǀŝĞƐ
ƐĞůůĚŝƌĞĐƚůLJƚŽĐŽŶƐƵŵĞƌƐ͕ƌĞŵŽǀŝŶŐ
sharing and autonomous 'ŽŽŐůĞƌŝǀĞƌůĞƐƐĂƌ
/ƉĂĚ ƚŚĞŶĞĞĚĨŽƌĚĞĂůĞƌƐŚŝƉƐ͘
vehicles. There is also the &ĂĐĞŬ
zŽƵƚƵďĞ
'ŽŽŐůĞ
ƉŽƚĞŶƟĂůĨŽƌĐŽŶƐƵŵĞƌ Hybrid Card
sƐ
ŚĂŶŐŝŶŐŵŽďŝůŝƚLJƉĂƩĞƌŶƐ͕ĂƐĂƌĞƐƵůƚ
ďƵLJŝŶŐƉŽŝŶƚƐƚŽƐŚŝŌƚŽ ĞůůWŚŽŶĞƐ ŽĨƌŝĚĞƐŚĂƌŝŶŐĂŶĚĂƵƚŽŶŽŵŽƵƐ
online sales channels.
ttt
tŝŶĚŽǁƐ
ƉƉůĞDĂĐŝŶƚŽƐŚ
ǀĞŚŝĐůĞƐ͕ŵĂLJƌĞƐƵůƚŝŶĂĨĂůůŝŶĐĂƌƐĂůĞƐ
D^ͲK^
tŽƌĚƉƌĞĐĞƐƐŽƌ
ĂŶĚƐĞƌǀŝĐĞƌĞǀĞŶƵĞĂƐƚŚĞƉƌŝŵĂƌLJ
For our Industrial Division, DŝĐƌŽƉƌŽĐĞƐƐŽƌ
ƉƵƌĐŚĂƐĞƌƐǁŝůůŶŽůŽŶŐĞƌďĞƌĞƚĂŝů
developments such as ĐƵƐƚŽŵĞƌƐďƵƚŇĞĞƚŽǁŶĞƌƐ;ĞŐ͘hďĞƌ
machine learning, edge ĂŶĚ'ƌĂďͿ͘dŚĞƉƌŽůŝĨĞƌĂƟŽŶŽĨĞůĞĐƚƌŝĐ
ĐŽŵƉƵƟŶŐ͕ϥƉƌŝŶƟŶŐ ǀĞŚŝĐůĞƐ;sƐͿŵĂLJƌĞĚƵĐĞƐĞƌǀŝĐĞ
and drones are expected
DĂŶŽŶDŽŽŶ
ƌĞǀĞŶƵĞ͕ĂƐsƐŚĂǀĞĨĞǁĞƌŵŽǀŝŶŐ
ƚŽĐŚĂŶŐĞƚŚĞƚƌĂĚŝƟŽŶĂů Car
ƉĂƌƚƐ͘
ŽƉĞƌĂƟŶŐůĂŶĚƐĐĂƉĞ͘dŚĞ WƌŝŶƟŶŐWƌĞƐƐ dĞůĞƐĐŽƉĞ
^ƚĞĂŵŶŐŝŶĞ
>ŝŐŚƚƵůď
dĞůĞƉŚŽŶĞ
trend towards renewable dĞůĞŐƌĂƉŚ
,ŽǁĞǀĞƌ͕ƚŚĞƌĞŝƐĂŶŽƉƉŽƌƚƵŶŝƚLJ
energy may also impact ŝŶƚŚĞŝŶĚƵƐƚƌŝĂůĞƋƵŝƉŵĞŶƚƐĞĐƚŽƌĨŽƌ
ϭϰϬϬ ϭϰϱϬ ϭϱϬϬ ϭϱϱϬ ϭϲϬϬ ϭϲϱϬ ϭϳϬϬ ϭϳϱϬ ϭϴϬϬ ϭϴϱϬ ϭϵϬϬ ϭϵϱϬ ϮϬϬϬ ϮϬϱϬ
ĚĞŵĂŶĚĨŽƌƚƌĂĚŝƟŽŶĂů ĞĂƌůLJĂĚŽƉƚĞƌƐŽĨŶĞǁƚĞĐŚŶŽůŽŐŝĞƐ
energy sources. ^ŽƵƌĐĞ͗DŝůĨŽƌĚƐƐĞƚ ƐƵĐŚĂƐϥƉƌŝŶƟŶŐ͕ŵĂĐŚŝŶĞůĞĂƌŶŝŶŐ
ĂŶĚĚƌŽŶĞƚĞĐŚŶŽůŽŐŝĞƐ͘

tĞĂƌĞĐŽŶƐĐŝŽƵƐŽĨƚŚĞŶĞǁ
ƚƌĞŶĚƐŝŵƉĂĐƟŶŐŽƵƌďƵƐŝŶĞƐƐĞƐ
ĂŶĚĂƌĞĚĞǀĞůŽƉŝŶŐƉůĂŶƐŽŶŚŽǁƚŽ
ŶĂǀŝŐĂƚĞƚŚĞŶĞǁůĂŶĚƐĐĂƉĞ͘

ANNUAL REPORT 2018 page ϭϱ

 MATERIAL MEGATRENDS THAT MAY IMPACT THE BUSINESS
POTENTIAL IMPACT ON OUR
MEGATREND SUPPORTING DATA
BUSINESSES
RISING AFFLUENCE IN ASIA

According to the Boston Asia Rules ^ŝŵĞĂƌďLJDŽƚŽƌƐŽƉĞƌĂƚĞƐ

ŽŶƐƵůƟŶŐ'ƌŽƵƉ͕ǁĞĂůƚŚ tĞĂůƚŚŝŶƐŝĂWĂĐŝĮĐƐƵƌƉĂƐƐĞƐŽƚŚĞƌƌĞŐŝŽŶƐ ƉƌĞĚŽŵŝŶĂŶƚůLJŝŶƚŚĞůƵdžƵƌLJĂŶĚ
ŝŶƐŝĂŚĂƐĚƌĂŵĂƟĐĂůůLJ ƐƵƉĞƌͲůƵdžƵƌLJƐĞŐŵĞŶƚƐŽĨƚŚĞ
increased in the last ;h^ŵŝůůŝŽŶͿ

two years, making it the ĂƵƚŽŵŽƟǀĞŝŶĚƵƐƚƌLJ͘KƵƌ

ϭ͘ϱ ϭ͘ϳ Ϯ͘ϰ Ϯ͘ϱ 8.0 8.7 ϭϰ͘ϳ ϭϱ͘ϵ ϭϴ͘Ϭ ϭϵ͘ϴ ϭϴ͘ϴ Ϯϭ͘ϲ
world’s richest region ƉƌŽĚƵĐƚƐ͕ƐƵĐŚĂƐDt͕WŽƌƐĐŚĞ͕
today. Wealth assets >ĂŵďŽƌŐŚŝŶŝ͕&ĞƌƌĂƌŝĂŶĚZŽůůƐͲZŽLJĐĞ͕
held by high-net-worth ĂƌĞĂƐƉŝƌĂƟŽŶĂůŝŶŶĂƚƵƌĞĂŶĚŽƵƌ
individuals in the Asia ĞdžƚĞŶƐŝǀĞŶĞƚǁŽƌŬĂĐƌŽƐƐƚŚĞƐŝĂ
WĂĐŝĮĐƌĞŐŝŽŶũƵŵƉĞĚ
ĂůŵŽƐƚϣϧйƚŽh^Ϥϣ͘Ϩ WĂĐŝĮĐƌĞŐŝŽŶǁŝůůĂůůŽǁƵƐƚŽĐĂƉŝƚĂůŝƐĞ
ƚƌŝůůŝŽŶŝŶϤϢϣϩ͘ ŽŶƚŚĞƌĞŐŝŽŶ͛ƐŐƌŽǁŝŶŐĂŋƵĞŶĐĞ͘

dŚĞŐƌŽǁŝŶŐĂŋƵĞŶĐĞǁŝůůĂůƐŽďĞ
ƉŽƐŝƟǀĞĨŽƌŽƵƌŚĞĂůƚŚĐĂƌĞďƵƐŝŶĞƐƐ
ĚƵĞƚŽƚŚĞŝŶĐƌĞĂƐŝŶŐĚĞŵĂŶĚĨŽƌ
ƋƵĂůŝƚLJŚĞĂůƚŚĐĂƌĞ͘
ĨƌŝĐĂ DŝĚĚůĞĞĂƐƚ >ĂƟŶŵĞƌŝĐĂ ƵƌŽƉĞ E͘ŵĞƌŝĐĂ ƐŝĂWĂĐŝĮĐ
ϤϢϣϨ ϤϢϣϩ

^ŽƵƌĐĞ͗ĂƉŐĞŵŝŶŝ͛ƐtŽƌůĚtĞĂůƚŚZĞƉŽƌƚϤϢϣϪ

AGEING POPULATION IN ASIA

dŚĞĂŐĞŝŶŐƉŽƉƵůĂƟŽŶ WĞƌĐĞŶƚĂŐĞŽĨƉŽƉƵůĂƟŽŶĂŐĞĚϨϢLJĞĂƌƐ dŚĞĂŐĞŝŶŐƉŽƉƵůĂƟŽŶǁŝůůŐĞŶĞƌĂƚĞ

in Asia is driving up the
demand for healthcare.
Asia is predicted to be
ŚŽŵĞƚŽϨϢйŽĨƚŚĞ
or over by region ŶĞǁŽƉƉŽƌƚƵŶŝƟĞƐŝŶŚĞĂůƚŚĐĂƌĞ͕ƐƵĐŚ
ĂƐŐĞƌŝĂƚƌŝĐƐ͕ƐĞŶŝŽƌůŝǀŝŶŐƐŽůƵƟŽŶƐ͕
ϯϱ
ƐƟŵĂƚĞƐ WƌŽũĞĐƟŽŶƐ ŵĞĚŝĐĂůƚŽƵƌŝƐŵĂŶĚŶƵƚƌŝƟŽŶΘ
WƌŽƉŽƌƟŽŶĂŐĞĚϲϬLJĞĂƌƐŽƌŽǀĞƌ;ƉĞƌĐĞŶƚĂŐĞͿ

ǁŽƌůĚ͛ƐŽǀĞƌϨϧƐďLJϤϢϥϢ͘ ϯϬ ƐƵƉƉůĞŵĞŶƚƐ͘
This will provide added
strain to economies due Ϯϱ
dŚĞƌĞĐŽƵůĚĂůƐŽďĞŽƉƉŽƌƚƵŶŝƟĞƐ
to rising life expectancies, ŝŶĨĞƌƟůŝƚLJĐůŝŶŝĐƐĂƐŐŽǀĞƌŶŵĞŶƚƐ
ϮϬ
greater demand for
ŚĞĂůƚŚĐĂƌĞĂŶĚƟŐŚƚĞŶŝŶŐ ĞŶĐŽƵƌĂŐĞĐŚŝůĚďŝƌƚŚƚŽďĂůĂŶĐĞƚŚĞ
ϭϱ
public sector budgets. ĚĞŵŽŐƌĂƉŚŝĐƐ͘
ϭϬ

dŚĞĂŐĞŝŶŐƉŽƉƵůĂƟŽŶ
will result in increased ϱ

demand for healthcare in

Ϭ
the region.
ϭϵϴϬ ϭϵϵϬ ϮϬϬϬ ϮϬϭϬ ϮϬϮϬ ϮϬϯϬ ϮϬϰϬ ϮϬϱϬ

^ŽƵƌĐĞ͗hŶŝƚĞĚEĂƟŽŶ
tŽƌůĚWŽƉƵůĂƟŽŶWƌŽƐƉĞĐƚƐ͗ƚŚĞϤϢϣϩZĞǀŝƐŝŽŶ

tŽƌůĚ ƵƌŽƉĞ EŽƌƚŚĞƌŶ >ĂƟŶŵĞƌŝĐĂĂŶĚƚŚĞ

ŵĞƌŝĐĂ ĂƌƌŝďĞĂŶ
Asia KĐĞĂŶŝĂ ĨƌŝĐĂ

page ϭϲ SIME DARBY BERHAD

ENGAGING WITH
OUR STAKEHOLDERS

tĞĚĞĮŶĞƐƚĂŬĞŚŽůĚĞƌƐĂƐŝŶĚŝǀŝĚƵĂůƐŽƌŐƌŽƵƉƐǁŚŽŝŵƉĂĐƚŽƌĂƌĞŝŵƉĂĐƚĞĚďLJŽƵƌďƵƐŝŶĞƐƐĞƐ͘dŚŝƐŝŶĐůƵĚĞƐŽƵƌŝŶǀĞƐƚŽƌƐ͕
ĐƵƐƚŽŵĞƌƐ͕ƐƵƉƉůŝĞƌƐ͕ďƵƐŝŶĞƐƐƉĂƌƚŶĞƌƐ͕ĞŵƉůŽLJĞĞƐ͕ƐŽĐŝĞƚLJĂŶĚĐŽŵŵƵŶŝƟĞƐ͕ƚŚĞŐŽǀĞƌŶŵĞŶƚ͕ĂƵƚŚŽƌŝƟĞƐĂŶĚƌĞŐƵůĂƚŽƌƐ͕ƚŚĞŵĞĚŝĂ͕
ŶŽŶͲŐŽǀĞƌŶŵĞŶƚĂůŽƌŐĂŶŝƐĂƟŽŶƐ͕ŝŶƚĞƌŶĂƟŽŶĂůďŽĚŝĞƐĂŶĚŵĂŶLJŽƚŚĞƌƐ͘

ŶŐĂŐĞŵĞŶƚƐĞƐƐŝŽŶƐǁŝƚŚŽƵƌƐƚĂŬĞŚŽůĚĞƌƐĂƌĞĐĞŶƚƌĞĚŽŶŝƐƐƵĞƐŵĂƚĞƌŝĂůƚŽŽƵƌŽƌŐĂŶŝƐĂƟŽŶ͘dŚĞƚĂďůĞďĞůŽǁƐĞƚƐŽƵƚƚŚĞƚLJƉĞƐŽĨ
ĞŶŐĂŐĞŵĞŶƚƐĐŽŶĚƵĐƚĞĚĨŽƌĞĂĐŚƐƚĂŬĞŚŽůĚĞƌŐƌŽƵƉ͘

STAKEHOLDER HOW WE ENGAGE

Investors ͻ ŶĂůLJƐƚďƌŝĞĮŶŐƐĞƐƐŝŽŶƐ
ͻ ZŽĂĚƐŚŽǁƐ
ͻ KŶĞͲŽŶͲŽŶĞĞŶŐĂŐĞŵĞŶƚƐ
ͻ ŽŶĨĞƌĞŶĐĞĐĂůůƐ
ͻ ^ŝƚĞǀŝƐŝƚƐ

Customers ͻ dƌĂĚĞƐŚŽǁƐΘĞdžŚŝďŝƟŽŶƐ
ͻ WƌŽĚƵĐƚůĂƵŶĐŚĞƐ
ͻ ŝƌĞĐƚĞŶŐĂŐĞŵĞŶƚƐ
ͻ sŝƐŝƚƐƚŽƐŝƚĞƐĂŶĚƉůĂŶƚƐŽƉĞƌĂƚĞĚďLJƚŚĞ'ƌŽƵƉ

Suppliers/Business Partners ͻ ZĞůĂƟŽŶƐŚŝƉďƵŝůĚŝŶŐǀŝĂŶĞƚǁŽƌŬŝŶŐƐĞƐƐŝŽŶƐ

ͻ sĞŶĚŽƌĞǀĞůŽƉŵĞŶƚWƌŽŐƌĂŵŵĞ

ŵƉůŽLJĞĞƐ;ĐƵƌƌĞŶƚĂŶĚƉŽƚĞŶƟĂůͿ ͻ dŽǁŶŚĂůůƐ͕ĞŶŐĂŐĞŵĞŶƚƐĞƐƐŝŽŶƐĂŶĚƐƚĂīĂĐƟǀŝƟĞƐ
ͻ &ŽĐƵƐĞĚŐƌŽƵƉĚŝƐĐƵƐƐŝŽŶƐŽŶƚĂƌŐĞƚĞĚŝƐƐƵĞƐ
ͻ ŵƉůŽLJĞĞƉŽƌƚĂů
ͻ ĂƌĞĞƌĨĂŝƌƐĂŶĚǁĞďƐŝƚĞ

ŽŵŵƵŶŝƟĞƐ ͻ ŽŵŵƵŶŝƚLJĞŶŐĂŐĞŵĞŶƚĂŶĚŽƵƚƌĞĂĐŚ
ͻ ^ƚƌĂƚĞŐŝĐƉĂƌƚŶĞƌƐŚŝƉƐ

'ŽǀĞƌŶŵĞŶƚͬƵƚŚŽƌŝƟĞƐͬZĞŐƵůĂƚŽƌƐ ͻ ZĞŐƵůĂƌĞŶŐĂŐĞŵĞŶƚƐ͕ĐŽŵŵƵŶŝĐĂƟŽŶƐĂŶĚĚŝĂůŽŐƵĞƐ
ͻ ŽŶƐƵůƚĂƟŽŶŽŶƌĞŐƵůĂƚŽƌLJŵĂƩĞƌƐ

Others (Media, Academics and ͻ WĞƌŝŽĚŝĐƵƉĚĂƚĞƐŽŶĐŽƌƉŽƌĂƚĞĚĞǀĞůŽƉŵĞŶƚƐ͕ŬĞLJĞǀĞŶƚƐ

/ŶĚƵƐƚƌLJƐƐŽĐŝĂƟŽŶͿ ĂŶĚƉƌĞƐƐƌĞůĞĂƐĞŝƐƐƵĂŶĐĞ
ͻ 'ƌŽƵƉĂŶĚŽŶĞͲŽŶͲŽŶĞYΘƐĞƐƐŝŽŶƐ

dŚĞ'ƌŽƵƉŝƐĐŽŵŵŝƩĞĚƚŽĞŶƐƵƌĞƚŚĂƚĐŽŵŵƵŶŝĐĂƟŽŶƐŽŶŽƵƌďƵƐŝŶĞƐƐĞƐ͕ŽƉĞƌĂƟŽŶƐĂŶĚĮŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞĂƌĞĂĐĐƵƌĂƚĞ͕ƟŵĞůLJ͕
ĨĂĐƚƵĂů͕ŝŶĨŽƌŵĂƟǀĞ͕ĐŽŶƐŝƐƚĞŶƚ͕ďƌŽĂĚůLJĚŝƐƐĞŵŝŶĂƚĞĚ͕ĂŶĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚĂƉƉůŝĐĂďůĞůĞŐĂůĂŶĚƌĞŐƵůĂƚŽƌLJƌĞƋƵŝƌĞŵĞŶƚƐ͘dŽƚŚĂƚĞŶĚ͕Ă
ƉŽůŝĐLJŽŶ^ƚĂŬĞŚŽůĚĞƌŶŐĂŐĞŵĞŶƚ͕ƐƟƉƵůĂƟŶŐĂƵƚŚŽƌŝƐĞĚĐŚĂŶŶĞůƐĂŶĚƉĞƌƐŽŶŶĞůƚŚƌŽƵŐŚǁŚŝĐŚͬǁŚŽŵĐĞƌƚĂŝŶͬƐƉĞĐŝĮĐŝŶĨŽƌŵĂƟŽŶƐŚĂůů
ďĞĂƉƉƌŽǀĞĚĂŶĚĚŝƐĐůŽƐĞĚƚŽŝƐƐĞƚŽƵƚŝŶƚŚĞ^ŝŵĞĂƌďLJĞƌŚĂĚ'ƌŽƵƉWŽůŝĐŝĞƐĂŶĚƵƚŚŽƌŝƟĞƐ͘

ANNUAL REPORT 2018 page ϭϳ

 ENTERPRISE RISK
MANAGEMENT

OUR APPROACH TO RISK MANAGEMENT ZDŝƐĞŵďĞĚĚĞĚŝŶŽƵƌĐƌŝƟĐĂůďƵƐŝŶĞƐƐĂĐƟǀŝƟĞƐ͕ĨƵŶĐƟŽŶƐ

tĞďĞůŝĞǀĞƚŚĞŝĚĞŶƟĮĐĂƟŽŶĂŶĚŵĂŶĂŐĞŵĞŶƚŽĨƌŝƐŬŝƐĐƌŝƟĐĂůŝŶ
ĂĐŚŝĞǀŝŶŐƚŚĞƐƚƌĂƚĞŐŝĐŽďũĞĐƟǀĞƐĐĞŶƚƌĂůƚŽŽƵƌĐŽƌƉŽƌĂƚĞŵŝƐƐŝŽŶ
ĂŶĚŝŶĐƌĞĂƟŶŐůŽŶŐƚĞƌŵƐŚĂƌĞŚŽůĚĞƌǀĂůƵĞ͘ŶƚĞƌƉƌŝƐĞZŝƐŬ
DĂŶĂŐĞŵĞŶƚ;͞ZD͟ͿĐĂŶƉƌĞƐĞŶƚŝƚƐĞůĨŝŶŵĂŶLJĨŽƌŵƐ͕ĂŶĚŚĂƐ
ƚŚĞƉŽƚĞŶƟĂůƚŽŝŵƉĂĐƚƵƐŝŶŵĂŶLJĚŝīĞƌĞŶƚǁĂLJƐ͘
LJƵŶĚĞƌƐƚĂŶĚŝŶŐĂŶĚŵĂŶĂŐŝŶŐƌŝƐŬ͕ǁĞƉƌŽǀŝĚĞŐƌĞĂƚĞƌĐĞƌƚĂŝŶƚLJ
ĂŶĚĐŽŶĮĚĞŶĐĞƚŽĂůůŽƵƌƐƚĂŬĞŚŽůĚĞƌƐ͘^ƵĐĐĞƐƐĨƵůƌŝƐŬŵĂŶĂŐĞŵĞŶƚ
ĐĂŶďĞĂƐŽƵƌĐĞŽĨĐŽŵƉĞƟƟǀĞĂĚǀĂŶƚĂŐĞ͘
KƵƌƌŝƐŬƐĂƌĞǀŝĞǁĞĚĂŶĚŵĂŶĂŐĞĚŽŶĂ'ƌŽƵƉͲǁŝĚĞďĂƐŝƐ͘
dŚĞĚŝǀĞƌƐŝĮĐĂƟŽŶŝŶŽƵƌƉŽƌƞŽůŝŽŽĨďƵƐŝŶĞƐƐĞƐŝƐĂŬĞLJĞůĞŵĞŶƚ
ŝŶŽƵƌZDĂƉƉƌŽĂĐŚ͘
ĂŶĚƉƌŽĐĞƐƐĞƐ͘KƵƌĂƉƉĞƟƚĞĨŽƌƌŝƐŬŝƐĂŬĞLJĐŽŶƐŝĚĞƌĂƟŽŶŝŶŽƵƌ
ĚĞĐŝƐŝŽŶŵĂŬŝŶŐ͘
KƵƌƌŝƐŬĂƉƉĞƟƚĞƌĞŇĞĐƚƐƚŚĞƐĐĂůĞŽĨƌŝƐŬŽŶĂďƌŽĂĚůĞǀĞů
ǁŚŝĐŚƚŚĞ'ƌŽƵƉŝƐƉƌĞƉĂƌĞĚƚŽƚĂŬĞ͕ŝŶƉƵƌƐƵŝƚŽĨŽƵƌƐƚƌĂƚĞŐŝĐ
ŽďũĞĐƟǀĞƐ͘dŚĞĂŵŽƵŶƚŽĨƌŝƐŬƚŚĞ'ƌŽƵƉƚŽůĞƌĂƚĞƐƌĞŇĞĐƚƐƚŚĞ
ƵŶŝƋƵĞĐŝƌĐƵŵƐƚĂŶĐĞƐĨĂĐĞĚďLJƚŚĞ'ƌŽƵƉ͕ŝŶĐůƵĚŝŶŐƚŚĞĞdžƚĞƌŶĂů
ĞŶǀŝƌŽŶŵĞŶƚ͕ƐƚƌĂƚĞŐLJ͕ƉĞŽƉůĞ͕ďƵƐŝŶĞƐƐ͕ƐLJƐƚĞŵƐĂŶĚƉŽůŝĐŝĞƐ͘
<ĞLJĨĞĂƚƵƌĞƐŽĨƚŚĞ'ƌŽƵƉ͛ƐƌŝƐŬĂƉƉĞƟƚĞĐŽǀĞƌƐƚƌĂƚĞŐŝĐ͕
ŽƉĞƌĂƟŽŶĂů͕ĮŶĂŶĐŝĂůĂŶĚƌĞŐƵůĂƚŽƌLJƉĂƌĂŵĞƚĞƌƐ͘dŚĞLJŐƵŝĚĞƚŚĞ
'ƌŽƵƉĂƐƚŽŚŽǁŝƚĐĂŶŵĂŶĂŐĞŝƚƐƌŝƐŬƐĞīĞĐƟǀĞůLJ͘
dŚĞĨŽůůŽǁŝŶŐĂƌĞĚĞƚĂŝůƐƌĞůĂƟŶŐƚŽƚŚĞŬĞLJƌŝƐŬƐĨĂĐĞĚďLJƚŚĞ
'ƌŽƵƉ͘ůƐŽŽƵƚůŝŶĞĚŝƐŽƵƌĂƉƉƌŽĂĐŚŝŶŵĂŶĂŐŝŶŐƚŚĞŬĞLJƌŝƐŬƐ
ǁŝƚŚŝŶƚŚĞ'ƌŽƵƉ͛ƐƌŝƐŬĂƉƉĞƟƚĞƉĂƌĂŵĞƚĞƌƐ͘

RISK
PRINCIPAL RISK DESCRIPTION & IMPACT KEY MITIGATION MEASURES
TREND
STRATEGIC/ FINANCIAL

Global, regional, local dŚĞ'ƌŽƵƉ͛ƐĞĂƌŶŝŶŐƐĂƌĞĚĞƉĞŶĚĞŶƚŽŶ ͻ dŚĞ'ƌŽƵƉĐŽŶƟŶƵĞƐƚŽĨŽĐƵƐŽŶ

ĞĐŽŶŽŵŝĐǀŽůĂƟůŝƚLJŝŵƉĂĐƚ
revenue.
ǀĂƌŝŽƵƐĨĂĐƚŽƌƐŝŶĐůƵĚŝŶŐĐŽŵŵŽĚŝƚLJƉƌŝĐĞƐ͕
ŐŽǀĞƌŶŵĞŶƚƐƉĞŶĚŝŶŐ͕ŐůŽďĂůĞĐŽŶŽŵLJĂŶĚ
ĚĞŵŽŐƌĂƉŚŝĐƐ͘
dŚĞƌĞĐĞŶƚŐůŽďĂůĨŽƌĞĐĂƐƚƐŚŽǁĞĚƚŚĂƚĐŽĂů
ĚĞŵĂŶĚǁŝůůƌĞŵĂŝŶŇĂƚďĞƚǁĞĞŶϮϬϭϳĂŶĚ
ϮϬϮϮ͘dŚĞĚƌŽƉŝŶĚĞŵĂŶĚĨŽƌĐŽĂůǁŝůůŚĂǀĞ
ĂŶŝŵƉĂĐƚŽŶŚĞĂǀLJĞƋƵŝƉŵĞŶƚƐĂůĞƐ͘
dŚĞƚƌĂĚĞǁĂƌďĞƚǁĞĞŶƚŚĞh^ĂŶĚŚŝŶĂ
ƌĞƐƵůƚĞĚŝŶĂŶŝŶĐƌĞĂƐĞŝŶƐƚĞĞůƉƌŝĐĞƐǁŚŝĐŚ
ŵĂLJĂīĞĐƚŽƵƌďƵƐŝŶĞƐƐĞƐŝŶƚŚĞŵŝŶŝŶŐĂŶĚ
ĞŶŐŝŶĞƐƐĞĐƚŽƌƐ͘WŽƐƐŝďůĞĂŶƟͲh^ƐĞŶƟŵĞŶƚ
ŵĂLJŝŵƉĂĐƚĂƚĞƌƉŝůůĂƌ͛ƐŵĂƌŬĞƚƐŚĂƌĞŝŶ
ŚŝŶĂ͘
ŝƚƐƐƚƌĂƚĞŐŝĐĞdžƉĂŶƐŝŽŶŝŶƚŽĚŝǀĞƌƐĞ
ďƵƐŝŶĞƐƐĞƐĂŶĚŐĞŽŐƌĂƉŚŝĞƐ͘/ŶŶŽǀĂƟŽŶ
ƐƵĸĐŝĞŶĐLJĂŶĚƌĞƐŽƵƌĐĞĂůůŽĐĂƟŽŶ
ƐƚƌĂƚĞŐŝĞƐǁŝůůďĞƉƵƚŝŶƉůĂĐĞƚŽ
ǁŝƚŚƐƚĂŶĚĞĐŽŶŽŵŝĐĚŽǁŶƚƵƌŶƐ͘
ͻ ^ƉĞĐŝĮĐƐƚƌĂƚĞŐŝĞƐƐƵĐŚĂƐŝŶŶŽǀĂƟǀĞ
ƐĂůĞƐ͕ŵĂƌŬĞƟŶŐĂŶĚƉƌŽŵŽƟŽŶĂů
ƐƚƌĂƚĞŐŝĞƐĂƌĞĞŵƉůŽLJĞĚƚŽƌĞƐƉŽŶĚƚŽ
ŵĂƌŬĞƚĐŽŶĚŝƟŽŶƐǁŝƚŚĞŵƉŚĂƐŝƐŽŶ
EĞƵƚƌĂů ĐƵƐƚŽŵĞƌƌĞůĂƟŽŶƐŚŝƉďƵŝůĚŝŶŐĂĐƟǀŝƟĞƐ͘
ͻ 'ƌŽƵƉdƌĞĂƐƵƌLJƉŽůŝĐLJŝƐŝŶƉůĂĐĞƚŽ
ŵŝƟŐĂƚĞĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌĂƚĞƌŝƐŬ
ƚŚƌŽƵŐŚŝŶƚĞƌŶĂůŚĞĚŐŝŶŐ͘

tŝƚŚŐůŽďĂůƚƌĂĚĞƚĞŶƐŝŽŶƐ͕ĞĐŽŶŽŵŝĐ
ƐůŽǁĚŽǁŶĂŶĚǀŽůĂƟůĞŽŝůƉƌŝĐĞƐ͕ƚŚĞ
DĂůĂLJƐŝĂŶZŝŶŐŐŝƚŝƐĞdžƉĞĐƚĞĚƚŽƚŽǁĞĂŬĞŶ
ĂŐĂŝŶƐƚƚŚĞh^ŽůůĂƌ͘

page ϭϴ SIME DARBY BERHAD

 RISK
PRINCIPAL RISK DESCRIPTION & IMPACT KEY MITIGATION MEASURES
TREND
STRATEGIC

/ŶĐƌĞĂƐŝŶŐĐŽŵƉĞƟƟŽŶ ŽŵƉĞƟƟŽŶƌĞŵĂŝŶƐŝŶƚĞŶƐĞĨŽƌŽƵƌƉƌŽĚƵĐƚ ͻ ůŽƐĞŵŽŶŝƚŽƌŝŶŐŽĨĐŽŵƉĞƟƚŽƌ

reduces market share or ŽīĞƌŝŶŐƐĂĐƌŽƐƐĂůůŵĂƌŬĞƚƐ͘ ƐƚƌĂƚĞŐŝĞƐ͕ĂĐƟǀŝƟĞƐĂŶĚƉƌĂĐƟĐĞƐŚĞůƉ
limits growth. ŵŝƟŐĂƚĞƚŚŝƐƌŝƐŬ͘
ŚĞĂƉĞƌƉĂƌƚƐĂŶĚƉƌŽĚƵĐƚƐŽīĞƌĞĚďLJŽƵƌ ͻ tĞĨŽĐƵƐŽŶďĞŝŶŐƌĞƐƉŽŶƐŝǀĞƚŽ
ĐŽŵƉĞƟƚŽƌƐƉĂƌƟĐƵůĂƌůLJŝŶŚŝŶĂǁŝůůŚĂǀĞĂ ĐƵƐƚŽŵĞƌƐ͛ŶĞĞĚƐĂŶĚŽŶŝŵƉƌŽǀŝŶŐ
ƐŝŐŶŝĮĐĂŶƚŝŵƉĂĐƚŽŶƐĂůĞƐ͘ ƚŚĞƋƵĂůŝƚLJĂŶĚĚĞůŝǀĞƌLJŽĨŽƵƌƉƌŽĚƵĐƚƐ
hƉǁĂƌĚ ĂŶĚƐĞƌǀŝĐĞƐ͘
EĞǁŵŽĚĞůůŝŶĞͲƵƉĨƌŽŵĐŽŵƉĞƟƚŽƌƐ͕ ͻ tĞŚŽůĚƉƌĞŵŝƵŵƉŽƐŝƟŽŶŝŶŐƚŚƌŽƵŐŚ
ĐŽƵƉůĞĚǁŝƚŚĂƩƌĂĐƟǀĞƉƌŝĐĞƐĨŽƌƚŚĞŝƌ ďƌĂŶĚŝŶŐ͘
ŽŵƉůĞƚĞͲ<ŶŽĐŬͲŽǁŶ;<ͿŵŽĚĞůƐŵĂLJ ͻ dŚƌŽƵŐŚƚŚĞĚŝǀĞƌƐŝĮĐĂƟŽŶŽĨďƌĂŶĚƐ͕
ĞƌŽĚĞŵĂƌŬĞƚƐŚĂƌĞ͘ ƚŚĞŝŵƉĂĐƚĨƌŽŵƚŚĞĐLJĐůŝĐĂůŶĂƚƵƌĞŽĨ
ŝŶĚŝǀŝĚƵĂůďƌĂŶĚƉĞƌĨŽƌŵĂŶĐĞŝƐƉĂƌƟĂůůLJ
ŵŝƟŐĂƚĞĚ͘

Evolving technologies and dŚĞƵďĞƌŝƐĂƟŽŶŽĨǀĞŚŝĐůĞƐĂŶĚŝŶĚƵƐƚƌŝĂů ͻ tĞĚĞǀĞůŽƉĚŝŐŝƚĂůƐƚƌĂƚĞŐŝĞƐĨŽƌŽƵƌ

ďƵƐŝŶĞƐƐŝŶŶŽǀĂƟŽŶƐƚŚĂƚ ĞƋƵŝƉŵĞŶƚǁŝůůŚĂǀĞĂŶŝŵƉĂĐƚŽŶƐĂůĞƐ͘ DŽƚŽƌƐĂŶĚ/ŶĚƵƐƚƌŝĂůŝǀŝƐŝŽŶƐƚŽ
ƚŚƌĞĂƚĞŶĞdžŝƐƟŶŐďƵƐŝŶĞƐƐ ĐŽƵŶƚĞƌƚŚĞƚŚƌĞĂƚŽĨĚŝŐŝƚĂůŝƐĂƟŽŶ͘
hƉǁĂƌĚ
models. KŶůŝŶĞƐĂůĞƐŵŽĚĞůƐĂŶĚĂƵƚŽŶŽŵŽƵƐ ͻ tĞĞdžƉůŽƌĞƉĂƌƚŶĞƌƐŚŝƉƐǁŝƚŚŽŶůŝŶĞ
ǀĞŚŝĐůĞƚƌĞŶĚƐǁŝůůŝŵƉĂĐƚŽƵƌƌŽůĞĂƐĂŶ ƐĂůĞƐƉŽƌƚĂůƚŽŝŶŇƵĞŶĐĞŽƵƚĐŽŵĞĂŶĚ
ŝŶƚĞƌŵĞĚŝĂƌLJ͘ ďƵŝůĚĐŽŵƉĞƚĞŶĐLJ͘

Overdependence on ĂƚĞƌƉŝůůĂƌĂŶĚDtĞdžĞƌƚƐƚƌŽŶŐŝŶŇƵĞŶĐĞ ͻ tĞĐŽŶƟŶƵĂůůLJĞŶŐĂŐĞĂŶĚŵĂŝŶƚĂŝŶ

principals. ŽǀĞƌŽƵƌďƵƐŝŶĞƐƐĞƐ͘ ĐůŽƐĞƌĞůĂƟŽŶƐŚŝƉƐǁŝƚŚĂůůŽƵƌ
ƉƌŝŶĐŝƉĂůƐĂŶĚƉĞƌĨŽƌŵƵƉƚŽƉƌŝŶĐŝƉĂů͛Ɛ
hƉǁĂƌĚ
KƵƌďƵƐŝŶĞƐƐŝƐŚĞĂǀŝůLJĚĞƉĞŶĚĞŶƚ ƌĞƋƵŝƌĞŵĞŶƚƐ͘
ŽŶƚŚĞŝƌƉĞƌĨŽƌŵĂŶĐĞ͘ ͻ tĞĞdžƉůŽƌĞŶĞǁĨƌĂŶĐŚŝƐĞ
ŽƉƉŽƌƚƵŶŝƟĞƐƚŽƐƉƌĞĂĚƌŝƐŬ͘

Inappropriate governance dŚĞ'ƌŽƵƉŝƐŝŶĐƌĞĂƐŝŶŐůLJŽƉĞƌĂƟŶŐŝƚƐ ͻ tĞĂƉƉůLJƐƚƌŝŶŐĞŶƚƉĂƌƚŶĞƌƐĞůĞĐƟŽŶ

and oversight of partner ďƵƐŝŶĞƐƐĞƐǀŝĂƉĂƌƚŶĞƌƐŚŝƉƐǁŝƚŚŽƚŚĞƌ
ƐĞůĞĐƟŽŶĂŶĚͬŽƌ ĞŶƟƟĞƐŝŶƚŚĞĨŽƌŵŽĨũŽŝŶƚǀĞŶƚƵƌĞƐ͘
management.
EĞƵƚƌĂů
/ŶĂƉƉƌŽƉƌŝĂƚĞŐŽǀĞƌŶĂŶĐĞŽǀĞƌƚŚĞƐĞůĞĐƟŽŶ
ĂŶĚŵĂŶĂŐĞŵĞŶƚŽĨŽƵƌƉĂƌƚŶĞƌƐŵĂLJƌĞƐƵůƚ
ŝŶƚŚĞůĂĐŬŽĨƉƌŽƚĞĐƟŽŶĨŽƌ^ŝŵĞĂƌďLJ
ĞƌŚĂĚ͛ƐŝŶƚĞƌĞƐƚƐ͘
ĐƌŝƚĞƌŝĂĂŶĚŐƵŝĚĞůŝŶĞƐŝŶĐůƵĚŝŶŐ
ĂƉƉƌŽƉƌŝĂƚĞŐŽǀĞƌŶĂŶĐĞĂƌƌĂŶŐĞŵĞŶƚƐ͘
ͻ ƵƌŝŶŐƚŚĞůŝĨĞƟŵĞŽĨĂŶLJũŽŝŶƚǀĞŶƚƵƌĞ
ƉĂƌƚŶĞƌƐŚŝƉ͕ĐŽŶƟŶƵĂůĞŶŐĂŐĞŵĞŶƚƐĂŶĚ
ĚŝĂůŽŐƵĞƐǁŝƚŚƉĂƌƚŶĞƌƐĂƌĞĐŽŶĚƵĐƚĞĚƚŽ
ĞŶƐƵƌĞĂůŝŐŶŵĞŶƚŽĨŽďũĞĐƟǀĞƐ͘

Merger and dŚĞ'ƌŽƵƉ͛ƐĚĞĐŝƐŝŽŶƚŽĚŝǀĞƌƐŝĨLJǀŝĂŵĞƌŐĞƌƐ ͻ WƵƌƐƵŝŶŐŵĞƌŐĞƌĂŶĚĂĐƋƵŝƐŝƟŽŶ

ĂĐƋƵŝƐŝƟŽŶĂĐƟǀŝƟĞƐ ĂŶĚĂĐƋƵŝƐŝƟŽŶƐŵĂLJŶŽƚĂĚĚƐŝŐŶŝĮĐĂŶƚ ŽƉƉŽƌƚƵŶŝƟĞƐƚŽĚŝǀĞƌƐŝĨLJƚŚĞďƵƐŝŶĞƐƐ
to capitalise on market ǀĂůƵĞƚŽĐƵƌƌĞŶƚůŝŶĞŽĨďƵƐŝŶĞƐƐĞƐ͘ ŝƐĂŬĞLJƌŝƐŬŵŝƟŐĂƟŽŶƐƚƌĂƚĞŐLJǁŝƚŚ
ŽƉƉŽƌƚƵŶŝƟĞƐŽĐĐƵƌƐ ĂƉƉƌŽƉƌŝĂƚĞĚƵĞĚŝůŝŐĞŶĐĞĂŶĚĞīĞĐƟǀĞ
ǁŝƚŚŽƵƚĞīĞĐƟǀĞƉůĂŶŶŝŶŐ ďƵƐŝŶĞƐƐĚĞĐŝƐŝŽŶƐ͘
ĂŶĚŝŶƚĞŐƌĂƟŽŶ͘ ͻ ƵƌƌĞŶƚŵĂƌŬĞƚŽƉƉŽƌƚƵŶŝƟĞƐŝŶĐůƵĚĞ
EĞƵƚƌĂů ŝŶĐĞŶƟǀĞƐŽīĞƌĞĚďLJƚŚĞDĂůĂLJƐŝĂŶ
ŐŽǀĞƌŶŵĞŶƚƚŽĞŶĐŽƵƌĂŐĞůŽĐĂůĐĂƌ
ĂƐƐĞŵďůLJ͘dŚŝƐƉƌŽǀŝĚĞƐƐŝŐŶŝĮĐĂŶƚ
ŽƉƉŽƌƚƵŶŝƟĞƐĨŽƌƚŚĞ'ƌŽƵƉƚŽĞdžƉĂŶĚ
ŝƚƐĂƐƐĞŵďůLJŵŽĚĞůůŝŶĞͲƵƉĂŶĚŝŶĐƌĞĂƐĞ
ƉƌŽĚƵĐƟŽŶǁŝƚŚĞdžŝƐƟŶŐĂŶĚŶĞǁ
ŵĂŶƵĨĂĐƚƵƌĞƌƐ͘

ANNUAL REPORT 2018 page ϭϵ


PRINCIPAL RISK
FINANCIAL
'ƌŽǁƚŚŝŶŝƟĂƟǀĞƐŐŝǀĞ
ƌŝƐĞƚŽƐŝŐŶŝĮĐĂŶƚĐĂƉŝƚĂů
ĞdžƉĞŶĚŝƚƵƌĞĂŶĚĐĂƐŚŇŽǁ
requirements.
OPERATIONAL
KƉĞƌĂƟŶŐŝŶĞĸĐŝĞŶĐŝĞƐ
ŝŵƉĂĐƚƉƌŽĮƚĂďŝůŝƚLJ͘
Talent gap to bring
business forward.
Inadequate project
management of major
ŝŶŝƟĂƟǀĞƐ͘
page ϮϬ
DESCRIPTION & IMPACT
dŚĞ'ƌŽƵƉ͛ƐĂďŝůŝƚLJƚŽĨƵŶĚƉůĂŶŶĞĚ
ĞdžƉĞŶĚŝƚƵƌĞƐƵĐŚĂƐĐĂƉŝƚĂůŐƌŽǁƚŚ͕ŵĞƌŐĞƌƐ
ĂŶĚĂĐƋƵŝƐŝƟŽŶƐĂŶĚŝƚƐŽƚŚĞƌŽďůŝŐĂƟŽŶƐ
ŵĂLJĨĂůƚĞƌŝĨŝƚƐĐĂƐŚƉŽƐŝƟŽŶƉƌŽǀĞƐ
ŝŶĂĚĞƋƵĂƚĞ͘
KƉĞƌĂƟŽŶĂůŝŶĞĸĐŝĞŶĐŝĞƐǁŝůůŝŵƉĂĐƚƉƌŽĮƚ
ŐŝǀĞŶĞdžŝƐƟŶŐƚŚŝŶŵĂƌŐŝŶƐ͘
dŚĞŽƌŐĂŶŝƐĂƟŽŶŵĂLJŶŽƚŚĂǀĞƚŚĞƌŝŐŚƚ
ƚĂůĞŶƚƚŽďƌŝŶŐƚŚĞďƵƐŝŶĞƐƐĨŽƌǁĂƌĚ͘
ZŽďƵƐƚƐƵĐĐĞƐƐŝŽŶƉůĂŶŵĂLJďĞůĂĐŬŝŶŐ͘
WŽƐƐŝďŝůŝƚLJŽĨƵŶĚĞƌĞƐƟŵĂƟŶŐƚŚĞĐŽƐƚŽƌ
ƟŵĞƌĞƋƵŝƌĞĚƚŽĐŽŵƉůĞƚĞƉƌŽũĞĐƚƐ͘&ĂŝůƵƌĞ
ƚŽŵĂŶĂŐĞƉƌŽũĞĐƚƐĞīĞĐƟǀĞůLJĚƵĞƚŽ
ƵŶĨŽƌĞƐĞĞŶĐŚĂůůĞŶŐĞƐ͘
ŶLJŽĨƚŚŝƐŵĂLJƌĞƐƵůƚŝŶŝŶĐƌĞĂƐĞĚĐĂƉŝƚĂů
ĐŽƐƚƐĂŶĚƐĐŚĞĚƵůĞĚĞůĂLJƐ͕ĂĚǀĞƌƐĞůLJ
ĂīĞĐƟŶŐŽƵƌƉƌŽũĞĐƚƐĂŶĚŝŵƉĂĐƟŶŐ
ĂŶƟĐŝƉĂƚĞĚĮŶĂŶĐŝĂůƌĞƚƵƌŶƐ͘
RISK
KEY MITIGATION MEASURES
TREND
ͻ KƵƌƐƚƌĂƚĞŐLJďůƵĞƉƌŝŶƚĂŶĚƉŽƌƞŽůŝŽ
ƌĞǀŝĞǁƐƚĂŬĞƐŝŶƚŽĂĐĐŽƵŶƚŝŶƚĞƌƚĞŵƉŽƌĂů
ĂŶĂůLJƐŝƐŽĨƉŽƌƞŽůŝŽƌĞƚƵƌŶƐĂŶĚĐĂƐŚ
ƌĞƋƵŝƌĞŵĞŶƚƐ͘
ͻ tĞŚĂǀĞĞƐƚĂďůŝƐŚĞĚĂ'ƌŽƵƉWŽůŝĐŝĞƐ
ĂŶĚƵƚŚŽƌŝƟĞƐ͕ǁŚŝĐŚŐƵŝĚĞƐ
ŝŶǀĞƐƚŵĞŶƚĂŶĚĮŶĂŶĐŝŶŐĂĐƟǀŝƟĞƐ͘
EĞƵƚƌĂů
ͻ tĞŚĂǀĞĂĐĐĞƐƐƚŽĂĚŝǀĞƌƐĞƌĂŶŐĞŽĨ
ĨƵŶĚŝŶŐƐŽƵƌĐĞƐĂŶĚĞŶƐƵƌĞŵĂŝŶƚĞŶĂŶĐĞ
ŽĨƐƵĸĐŝĞŶƚĐƌĞĚŝƚĨĂĐŝůŝƟĞƐ͘tĞĂůƐŽ
ĞŶĨŽƌĐĞƐƚƌŝŶŐĞŶƚǁŽƌŬŝŶŐĐĂƉŝƚĂů
ŵĞĂƐƵƌĞƐ͘
ͻ tĞĚŽƌĞŐƵůĂƌƌĞǀŝĞǁƐŽĨĐĂƐŚ
ƉƌŽũĞĐƟŽŶƐĂŶĚĨƵŶĚŝŶŐƉůĂŶƐ͘
ͻ ŽƐƚŽƉƟŵŝƐĂƟŽŶŵĞĂƐƵƌĞƐĂƌĞŝŶ
ƉůĂĐĞĨŽƌƚŚĞŝǀŝƐŝŽŶƐ͕ŝŶĐůƵĚŝŶŐ
EĞƵƚƌĂů
ƉƌŽĐĞƐƐƐƚĂŶĚĂƌĚŝƐĂƟŽŶ͕ůĞĂŶƐŝdžƐŝŐŵĂ͕
ƉƌŽĐƵƌĞŵĞŶƚĐŽŶƚƌŽůĂŶĚƌŝŐŚƚƐŝnjŝŶŐ͘
ͻ tĞŚĂǀĞĚĞǀĞůŽƉĞĚĂĐŽŵƉƌĞŚĞŶƐŝǀĞ,Z
ƉůĂŶƚŽƌĞĐƌƵŝƚǀŝƚĂůƐƚƌĂƚĞŐŝĐƉŽƐŝƟŽŶƐ
EĞƵƚƌĂů ǁŚŝĐŚƚŚĞ'ƌŽƵƉĐƵƌƌĞŶƚůLJůĂĐŬƐ͘
ͻ tĞŵĂŬĞƐƵĐĐĞƐƐŝŽŶƉůĂŶŶŝŶŐƉĂƌƚŽĨƚŚĞ
<W/ŽĨŬĞLJƉŽƐŝƟŽŶƐ͘
ͻ tĞĚĞǀŽƚĞƐŝŐŶŝĮĐĂŶƚƟŵĞĂŶĚƌĞƐŽƵƌĐĞƐ
ƚŽƚŚĞƉůĂŶŶŝŶŐ͕ĂƉƉƌŽǀĂůĂŶĚƌĞǀŝĞǁŽĨ
ƉƌŽũĞĐƚƐ͕ĂŶĚŚĂǀĞĞƐƚĂďůŝƐŚĞĚĂƌŽďƵƐƚ
ƉƌŽũĞĐƚƌŝƐŬŵĂŶĂŐĞŵĞŶƚĨƌĂŵĞǁŽƌŬ͘
ͻ tĞĐŽŶĚƵĐƚƌĞŐƵůĂƌŝĚĞŶƟĮĐĂƟŽŶŽĨƌŝƐŬƐ
ƚŚƌŽƵŐŚŽƵƚƚŚĞƉƌŽũĞĐƚůŝĨĞĐLJĐůĞ͘tĞ
EĞƵƚƌĂů ŵŽŶŝƚŽƌĂŶĚƌĞƉŽƌƚƚŚĞƐƚĂƚƵƐŽĨŵĂũŽƌ
ƉƌŽũĞĐƚƐƚŽƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚĂŶĚ
ŽĂƌĚŽŶĂƌĞŐƵůĂƌďĂƐŝƐ͘
ͻ DĂũŽƌƉƌŽũĞĐƚƐĂƌĞƐƵďũĞĐƚƚŽŽĂƌĚ
ĂƉƉƌŽǀĂůĂŶĚŽǀĞƌƐŝŐŚƚ͘džƉĞƌŝĞŶĐĞĚ
ƉƌŽũĞĐƚŵĂŶĂŐĞŵĞŶƚƚĞĂŵƐĂƌĞĂƐƐŝŐŶĞĚ
ƚŽŵŽŶŝƚŽƌƉƌŽũĞĐƚƐ͘
SIME DARBY BERHAD

PRINCIPAL RISK DESCRIPTION & IMPACT
REGULATORY
Changes in government tĞŚĂǀĞŽƉĞƌĂƟŽŶƐŝŶĂŶƵŵďĞƌŽĨ
policy undermining ĐŽƵŶƚƌŝĞƐĂƌŽƵŶĚƚŚĞŐůŽďĞ͕ǁŚĞƌĞŶĞǁĂŶĚͬ
investment. ŽƌĐŚĂŶŐĞƐŝŶĞdžŝƐƟŶŐŐŽǀĞƌŶŵĞŶƚƉŽůŝĐŝĞƐ
ĂŶĚƌĞŐƵůĂƟŽŶƐĐĂŶŚĂǀĞĂŶŝŵƉĂĐƚŽŶŽƵƌ
ƉƌŽĮƚĂďŝůŝƚLJ͘
ŚĂŶŐĞƐŝŶƌĞŐƵůĂƟŽŶƐƌĞůĂƟŶŐƚŽƚŚĞ
ĞŶǀŝƌŽŶŵĞŶƚĂŶĚŵŽƚŽƌǀĞŚŝĐůĞŽǁŶĞƌƐŚŝƉ
ĐĂŶĂĚǀĞƌƐĞůLJĂīĞĐƚŽƵƌŝǀŝƐŝŽŶƐ͛ŽƉĞƌĂƟŽŶƐ
ŝŶƚĞƌŵƐŽĨĚĞĐƌĞĂƐĞĚƐĂůĞƐ͕ŝŶĐƌĞĂƐĞĚĐŽƐƚƐ͕
ůŝƟŐĂƟŽŶŽƌŝŶĞdžƚƌĞŵĞĐĂƐĞƐ͕ƚŚĞ
ǀŝĂďŝůŝƚLJŽĨĂďƵƐŝŶĞƐƐ͘
ANNUAL REPORT 2018
RISK
KEY MITIGATION MEASURES
TREND
ͻ tĞƌĞŐƵůĂƌůLJĞŶŐĂŐĞĂŶĚĐŽŵŵƵŶŝĐĂƚĞ
ǁŝƚŚŐŽǀĞƌŶŵĞŶƚƐ͕ƌĞŐƵůĂƚŽƌƐĂŶĚ
ĂƵƚŚŽƌŝƟĞƐƚŽĞŶƐƵƌĞƚŚĞƉŽƚĞŶƟĂů
ĂĚǀĞƌƐĞŝŵƉĂĐƚƐŽĨƉƌŽƉŽƐĞĚƌĞŐƵůĂƚŽƌLJ
ĐŚĂŶŐĞƐĂƌĞƵŶĚĞƌƐƚŽŽĚĂŶĚǁŚĞƌĞ
ƉŽƐƐŝďůĞ͕ŵŝƟŐĂƚĞĚ͘
ͻ ŽŶƟŶƵĂůŵŽŶŝƚŽƌŝŶŐŽĨĐŚĂŶŐĞƐŝŶ
hƉǁĂƌĚ ƌĞƋƵŝƌĞŵĞŶƚƐĂŶĚĞŶƐƵƌŝŶŐĂĚŚĞƌĞŶĐĞŝƐ
ĂŬĞLJĨĞĂƚƵƌĞŽĨŽƵƌĂƉƉƌŽĂĐŚ͘
ͻ tĞƐŽƵƌĐĞĨŽƌĐƌĞĚŝďůĞůŽĐĂůƉĂƌƚŶĞƌƐ
ƚŽŵĞĞƚůŽĐĂůŽǁŶĞƌƐŚŝƉƌĞŐƵůĂƚŽƌLJ
ƌĞƋƵŝƌĞŵĞŶƚƐ͕ĐŽŶƟŶƵŽƵƐůLJĞŶŐĂŐĞ
ŝŶĚƵƐƚƌLJďŽĚŝĞƐĂŶĚůĞǀĞƌĂŐĞŽŶŽƵƌ
ŐŽǀĞƌŶŵĞŶƚƚŽŐŽǀĞƌŶŵĞŶƚ;'Ϯ'Ϳ
ƌĞůĂƟŽŶƐŚŝƉƐ͘
page Ϯϭ
SIME DARBY BERHAD
A N N UA L R E P O R T 2018

MANAGEMENT
DISCUSSION
& ANALYSIS:
PERFORMANCE
REVIEW
Our Performance Review
/ŶƚŚŝƐƐĞĐƟŽŶ͕ǁĞƉƌŽǀŝĚĞŽƵƌ
>ĞĂĚĞƌƐŚŝƉ^ƚĂƚĞŵĞŶƚƐĂŶĚ
WĞƌĨŽƌŵĂŶĐĞZĞƉŽƌƚƐĨŽƌŽƵƌ
ŝǀŝƐŝŽŶƐĨŽƌ&zϮϬϭϴ͘

Page 22
Chairman’s Statement

Page 25
'ƌŽƵƉŚŝĞĨdžĞĐƵƟǀĞKĸĐĞƌ͛ƐZĞǀŝĞǁ

Page 28
'ƌŽƵƉŚŝĞĨ&ŝŶĂŶĐŝĂůKĸĐĞƌ͛ƐZĞǀŝĞǁ

Page 35
ŝǀŝƐŝŽŶĂůKƉĞƌĂƟŽŶƐZĞǀŝĞǁ
• Sime Darby Industrial 35
• Sime Darby Motors 44
• ^ŝŵĞĂƌďLJ>ŽŐŝƐƟĐƐ 53
 CHAIRMAN’S
STATEMENT

DEAR VALUED
SHAREHOLDERS,

&zϮϬϭϴǁĂƐĂƚƌĂŶƐĨŽƌŵĂƟǀĞ
LJĞĂƌĨŽƌďŽƚŚDĂůĂLJƐŝĂĂŶĚ
ĨŽƌ^ŝŵĞĂƌďLJĞƌŚĂĚ;^Ϳ͘
/ŶEŽǀĞŵďĞƌϮϬϭϳ͕^
ĐŽŵƉůĞƚĞĚĂďŽůĚƌĞƐƚƌƵĐƚƵƌŝŶŐ
ƉůĂŶĂŶĚĐƌĞĂƚĞĚƚŚƌĞĞ
ƉƵƌĞͲƉůĂLJĞŶƟƟĞƐ͕ŝŶƚŚĞ
ƉůĂŶƚĂƟŽŶ͕ƉƌŽƉĞƌƚLJ͕ĂŶĚ
ƚƌĂĚŝŶŐĂŶĚůŽŐŝƐƟĐƐƐĞĐƚŽƌƐ͕
ĞĂĐŚůŝƐƚĞĚŽŶƵƌƐĂDĂůĂLJƐŝĂ͘
tŚŝůĞƐƟůůďĞŶĞĮƫŶŐĨƌŽŵϭϬϬ
LJĞĂƌƐŽĨ^ŝŵĞĂƌďLJŚĞƌŝƚĂŐĞ
ĂŶĚĞdžƉĞƌŝĞŶĐĞ͕ĞĂĐŚĞŶƟƚLJ
ĐĂŶŶŽǁďĞŵŽƌĞĨŽĐƵƐĞĚŽŶ
ŝƚƐĐŽƌĞĞdžƉĞƌƟƐĞ͕ĂŶĚŝƐŵŽƌĞ
ĂŐŝůĞŝŶƉƵƌƐƵŝŶŐŝŶĚŝǀŝĚƵĂů
ŐƌŽǁƚŚƐƚƌĂƚĞŐŝĞƐ͘

RM1.1 billion
PROFIT BEFORE INTEREST
EdyΈW/dΉ
/ŶƚŚĞƐĞĐŽŶĚŚĂůĨŽĨ&zϮϬϭϴ͕ŝŶǀĞƐƚŽƌƐǁĞƌĞĂůƌĞĂĚLJƐĞĞŝŶŐŽŶĞŽĨƚŚĞďĞŶĞĮƚƐŽĨƚŚĞƉƵƌĞͲƉůĂLJ
ĞdžĞƌĐŝƐĞ͕ĂƐŵŽƌĞĨŽĐƵƐĞĚĂŶĚĐŽŵƉƌĞŚĞŶƐŝǀĞďƵƐŝŶĞƐƐŝŶƐŝŐŚƚƐĂŶĚƉĞƌĨŽƌŵĂŶĐĞĂŶĂůLJƐĞƐǁĞƌĞ

RM33.8 billion
ďĞŝŶŐƉƌŽǀŝĚĞĚ͘dŚŝƐǁŝůůĞŶĂďůĞƐŚĂƌĞŚŽůĚĞƌƐƚŽďĞƩĞƌƵŶĚĞƌƐƚĂŶĚƚŚĞďƵƐŝŶĞƐƐĞƐĂŶĚĂůůŽǁ
ƚŚĞŵƚŽƌĞďĂůĂŶĐĞƚŚĞŝƌƉŽƌƞŽůŝŽƐŝŶƚŚĞƚŚƌĞĞƉƵƌĞͲƉůĂLJĞŶƟƟĞƐĂĐĐŽƌĚŝŶŐƚŽƚŚĞŝƌŝŶǀĞƐƚŵĞŶƚ
ƉƌĞĨĞƌĞŶĐĞƐ͘
REVENUE
dŚĞ^ŽĂƌĚŝƐĐŽŵŵŝƩĞĚƚŽƉƵƌƐƵŝŶŐŝƚƐƐƚƌĂƚĞŐŝĐǀŝƐŝŽŶƚŽďĞĂůĞĂĚŝŶŐŵŽƚŽƌƐĂŶĚŝŶĚƵƐƚƌŝĂů
ƉůĂLJĞƌŝŶƐŝĂWĂĐŝĮĐ͕ǁŚŝůƐƚĞŶƐƵƌŝŶŐƐƵƐƚĂŝŶĂďůĞŐƌŽǁƚŚ͕ĂŶĚƵŶůŽĐŬŝŶŐŐƌĞĂƚĞƌǀĂůƵĞĨŽƌŽƵƌ
ƐŚĂƌĞŚŽůĚĞƌƐ͘KƵƌƐƚƌĂƚĞŐŝĞƐǁŝůůĞŶŚĂŶĐĞŽƵƌŽƉĞƌĂƟŽŶƐĂŶĚƉŽƐŝƟŽŶƵƐǁĞůůĨŽƌƚŚĞĨƵƚƵƌĞĂŶĚ
ŚĞůƉƵƐƌĞĂůŝƐĞƚŚĞƐĞĂƐƉŝƌĂƟŽŶƐ͘

page 22 SIME DARBY BERHAD

FINANCIAL PERFORMANCE
/ĂŵƉůĞĂƐĞĚƚŽƉƌĞƐĞŶƚ^͛ƐĮŶĂŶĐŝĂůƌĞƐƵůƚƐĨŽƌ
ƚŚĞLJĞĂƌĞŶĚĞĚϯϬ:ƵŶĞϮϬϭϴ͘tĞƉŽƐƚĞĚƐƚƌŽŶŐ
ƌĞƐƵůƚƐĂĐƌŽƐƐĂůůŽƵƌĐŽƌĞĚŝǀŝƐŝŽŶƐĨŽƌƚŚĞLJĞĂƌ͘
KƵƌŶĞǁůĞĂŶĞƌƐƚƌƵĐƚƵƌĞůĞǀĞƌĂŐĞƐŽŶŽƵƌĐŽƌĞ
ƚƌĂĚŝŶŐĞdžƉĞƌƟƐĞĂŶĚŚĂƐĂůůŽǁĞĚƵƐƚŽƌĞƐƉŽŶĚ
ƋƵŝĐŬĞƌƚŽĐŚĂŶŐŝŶŐŵĂƌŬĞƚĐŽŶĚŝƟŽŶƐ͘
&ŽƌƚŚĞLJĞĂƌƵŶĚĞƌƌĞǀŝĞǁ͕^͛ƐĐŽŶƟŶƵŝŶŐ
ŽƉĞƌĂƟŽŶƐƌĞƉŽƌƚĞĚĂƌĞǀĞŶƵĞŽĨZDϯϯ͘ϴďŝůůŝŽŶ
ĂŶĚĂWƌŽĮƚĞĨŽƌĞ/ŶƚĞƌĞƐƚĂŶĚdĂdž;W/dͿŽĨ
ZDϭ͘ϭďŝůůŝŽŶ͘dŚŝƐƌĞƉƌĞƐĞŶƚƐĂŶŝŶĐƌĞĂƐĞŽĨϴ͘ϴй
ĨƌŽŵZDϯϭ͘ϭďŝůůŝŽŶĂŶĚϯϳйĨƌŽŵZDϳϴϰŵŝůůŝŽŶ
ŝŶ&zϮϬϭϳƌĞƐƉĞĐƟǀĞůLJ͘dŚĞ'ƌŽƵƉ͛ƐŶĞƚƉƌŽĮƚ
ĨƌŽŵĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐƌŽƐĞϬ͘ϱйLJĞĂƌͲŽŶͲ
LJĞĂƌ;zŽzͿƚŽZDϲϭϴŵŝůůŝŽŶ͘dŚĞŵŽĚĞƐƚŝŶĐƌĞĂƐĞ
ŝŶŶĞƚƉƌŽĮƚǁĂƐŵĂŝŶůLJĚƵĞƚŽƚŚĞƐŝŐŶŝĮĐĂŶƚ
ƌĞĚƵĐƟŽŶŽĨŝŶƚĞƌĞƐƚŝŶĐŽŵĞĨƌŽŵĚŝƐĐŽŶƟŶƵĞĚ
ŽƉĞƌĂƟŽŶƐĨŽůůŽǁŝŶŐƚŚĞƉƵƌĞͲƉůĂLJƌĞƐƚƌƵĐƚƵƌŝŶŐ͘
tĞŚĂǀĞĂŚĞĂůƚŚLJďĂůĂŶĐĞƐŚĞĞƚǁŝƚŚĂůŽǁ
ŐĞĂƌŝŶŐůĞǀĞůŽĨĂďŽƵƚϮϬй͕ǁŚŝĐŚƉƌŽǀŝĚĞƐ
ƵƐǁŝƚŚĂŵƉůĞĚĞďƚŚĞĂĚƌŽŽŵĨŽƌƐƚƌĂƚĞŐŝĐ
ĞdžƉĂŶƐŝŽŶĂŶĚŵĞƌŐĞƌƐĂŶĚĂĐƋƵŝƐŝƟŽŶƐ;DΘƐͿ͘
WůĞĂƐĞƌĞĨĞƌƚŽƚŚĞ'ƌŽƵƉŚŝĞĨ&ŝŶĂŶĐŝĂůKĸĐĞƌ͛Ɛ
ZĞǀŝĞǁŽŶƉĂŐĞƐϮϴƚŽϯϰĨŽƌĂŵŽƌĞŝŶͲĚĞƉƚŚ
ĂƉƉƌĂŝƐĂůŽĨŽƵƌĮŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞ͘
CORPORATE GOVERNANCE
tĞƌĞĐŽŐŶŝƐĞƚŚĂƚŐŽŽĚŐŽǀĞƌŶĂŶĐĞŝƐĞƐƐĞŶƟĂů
ŝŶĂƐƐŝƐƟŶŐƚŚĞďƵƐŝŶĞƐƐƚŽĚĞůŝǀĞƌŝƚƐƐƚƌĂƚĞŐLJ͕
ŐĞŶĞƌĂƚĞƐŚĂƌĞŚŽůĚĞƌǀĂůƵĞĂŶĚƐĂĨĞŐƵĂƌĚ
ƐŚĂƌĞŚŽůĚĞƌƐ͛ůŽŶŐͲƚĞƌŵŝŶƚĞƌĞƐƚƐ͘/ŶƚŚĞůĂƐƚ
ϭϮŵŽŶƚŚƐ͕ǁĞŚĂǀĞƐƉĞŶƚĂŐƌĞĂƚĚĞĂůŽĨ
ƟŵĞĮŶĂůŝƐŝŶŐƚŚĞŽĂƌĚĐŽŵƉŽƐŝƟŽŶĂŶĚ
ŝƚƐƐƚƌƵĐƚƵƌĞƐ͕ǁŚŝůĞĂůƐŽĐŽŶƐŝĚĞƌŝŶŐŵĂƩĞƌƐ
ƌĞůĂƟŶŐƚŽŐƌŽƵƉĂŶĚĚŝǀŝƐŝŽŶĂůƐƚƌĂƚĞŐŝĞƐ͘
tĞŚĂǀĞĞŶŚĂŶĐĞĚŽƵƌŽĂƌĚƚŽďĞƩĞƌ
ƐƵŝƚƚŚĞŶĞǁďƵƐŝŶĞƐƐƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞ
ŽƌŐĂŶŝƐĂƟŽŶ͕ĨŽĐƵƐŝŶŐŽŶĚŝǀĞƌƐŝƚLJŝŶƚĞƌŵƐŽĨ
ƐŬŝůůƐĂŶĚŐĞŽŐƌĂƉŚŝĐĂůĞdžƉĞƌŝĞŶĐĞƌĞůĞǀĂŶƚƚŽ
ŽƵƌďƵƐŝŶĞƐƐĞƐ͘dŚĞŶĞǁŽĂƌĚĐŽŵƉƌŝƐĞƐϭϮ
ĚŝƌĞĐƚŽƌƐ͕ƚŚĞŵĂũŽƌŝƚLJŽĨǁŚŽŵĂƌĞ/ŶĚĞƉĞŶĚĞŶƚ
EŽŶͲdžĞĐƵƟǀĞŝƌĞĐƚŽƌƐ͘dĂŶ^ƌŝ^ĂŵƐƵĚŝŶ
KƐŵĂŶ͕ĂƚŽ^ƌŝ>ŝŵ,Ăǁ<ƵĂŶŐĂŶĚĂƚƵŬtĂŶ
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ƚŚĞƉƌĞǀŝŽƵƐŽĂƌĚ͘EĞǁŵĞŵďĞƌƐŽĨƚŚĞŽĂƌĚ
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WĂƌĚĂƐ^ĞŶŝŶ͕ĂƚŽ͛^ƌŝďĚƵů,ĂŵŝĚLJďĚƵů,ĂĮnj͕
Dƌ͘dŚĂLJĂƉĂƌĂŶ^ĂŶŐĂƌĂƉŝůůĂŝ͕ĂƚŽ͛>ĂǁƌĞŶĐĞ
>ĞĞŚĞŽǁ,ŽĐŬĂŶĚDƐ͘DŽLJWƵŝzĞĞ͘/ďĞůŝĞǀĞ
ANNUAL REPORT 2018
ƚŚĞŽĂƌĚŝƐĂƉƉƌŽƉƌŝĂƚĞůLJďĂůĂŶĐĞĚŝŶƚĞƌŵƐŽĨ
ĚŝǀĞƌƐŝƚLJǁŝƚŚĂŐŽŽĚŵŝdžŽĨƐƉĞĐŝĂůŝƐƚƐŬŝůůƐĂŶĚ
8 sen
ďƌŽĂĚŵĂƌŬĞƚĞdžƉĞƌƟƐĞ͕ŵĂŬŝŶŐƚŚĞŵǁĞůůƉůĂĐĞĚ
ƚŽĐŽŶƟŶƵĞƌĂŝƐŝŶŐƚŚĞƐƚĂŶĚĂƌĚƐŽĨŐŽŽĚƉƌĂĐƟĐĞ
ŝŶƌĞůĂƟŽŶƚŽŽĂƌĚůĞĂĚĞƌƐŚŝƉĂŶĚĞīĞĐƟǀĞŶĞƐƐ͕ DIVIDEND FY2018
ĂƐǁĞůůĂƐĐŽŶƚƌŝďƵƟŶŐǀĂůƵĂďůĞŝŶƐŝŐŚƚƐĨŽƌ ŝŶĐůƵĚŝŶŐĂƐƉĞĐŝĂůĚŝǀŝĚĞŶĚ
ďƵƐŝŶĞƐƐĞdžƉĂŶƐŝŽŶ͘ ŽĨϮƐĞŶƚŽƌĞǁĂƌĚŽƵƌ
shareholders
KƵƌŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞKǀĞƌǀŝĞǁ͕ǁŚŝĐŚ
ƉƌŽǀŝĚĞƐĂĚĞĞƉĞƌŝŶƐŝŐŚƚŝŶƚŽŽƵƌŽĂƌĚ
ĐŽŵƉŽƐŝƟŽŶĂŶĚďĂĐŬŐƌŽƵŶĚ͕ĂƐǁĞůůĂƐŽƵƌ
ƉƌŝŽƌŝƟĞƐĂŶĚĂĐƟǀŝƟĞƐƚŚŝƐLJĞĂƌŝƐĂǀĂŝůĂďůĞŽŶ
ƉĂŐĞƐϲϴƚŽϵϴ͘ 18.2%
INCREASED FOREIGN
SHARE PRICE PERFORMANCE AND DIVIDEND SHAREHOLDING
&ŽůůŽǁŝŶŐƚŚĞƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞ͕^͛ƐƐŚĂƌĞ ĨƌŽŵEŽǀĞŵďĞƌϮϬϭϳ
ƉƌŝĐĞŚĂƐƉĞƌĨŽƌŵĞĚĞdžĐĞƉƟŽŶĂůůLJǁĞůů;нϰϯй ƚŽƵŐƵƐƚϮϬϭϴ
ĨƌŽŵƚŚĞƌĞĨĞƌĞŶĐĞƉƌŝĐĞŽĨZDϭ͘ϴϱĂƐĂƚ
ϯϬ:ƵŶĞϮϬϭϴͿ͕ŝŶĚŝĐĂƟŶŐĂƉŽƐŝƟǀĞƌĞƐƉŽŶƐĞĨƌŽŵ
ŝŶǀĞƐƚŽƌƐƚŽǁĂƌĚƐƚŚĞďƵƐŝŶĞƐƐĨŽĐƵƐ͕ƐƚƌĂƚĞŐŝĞƐ
ĂŶĚƉƌŽƐƉĞĐƚƐŽĨƚŚĞĐŽŵƉĂŶLJ͘KƵƌƐƚƌŽŶŐ
ƉĂƌƚŶĞƌƐŚŝƉǁŝƚŚǁŽƌůĚͲĐůĂƐƐďƌĂŶĚƐ;ĂƚĞƌƉŝůůĂƌ
ĂŶĚDtĂŵŽŶŐŽƚŚĞƌƐͿ͕ĂŶĚŽƵƌďƌŽĂĚƌĞŐŝŽŶĂů
ĨŽŽƚƉƌŝŶƚŚĂƐƌĞƐŽŶĂƚĞĚǁĞůůǁŝƚŚŝŶǀĞƐƚŽƌƐ͘^
ŚĂƐĂůƐŽĂƩƌĂĐƚĞĚĂĚĚŝƟŽŶĂůĨŽƌĞŝŐŶŝŶǀĞƐƚŽƌ
ŝŶƚĞƌĞƐƚ͕ĂƐĞǀŝĚĞŶĐĞĚŝŶƚŚĞŝŶĐƌĞĂƐĞŝŶŽƵƌ
ĨŽƌĞŝŐŶƐŚĂƌĞŚŽůĚŝŶŐĨƌŽŵϭϱ͘ϮйŝŶEŽǀĞŵďĞƌ
ϮϬϭϳƚŽϭϴ͘ϮйŝŶƵŐƵƐƚϮϬϭϴ͘
tĞĚĞĐůĂƌĞĚĂƚŽƚĂůŽĨϴƐĞŶĚŝǀŝĚĞŶĚĨŽƌ&zϮϬϭϴ͕
ŝŶĐůƵĚŝŶŐĂƐƉĞĐŝĂůĚŝǀŝĚĞŶĚŽĨϮƐĞŶ͕ƚŽƌĞǁĂƌĚ
ŽƵƌƐŚĂƌĞŚŽůĚĞƌƐĨŽůůŽǁŝŶŐƚŚĞƐƵĐĐĞƐƐĨƵů
ĐŽŵƉůĞƟŽŶŽĨƚŚĞƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞ͘
WůĞĂƐĞƌĞĨĞƌƚŽƚŚĞ/ŶǀĞƐƚŽƌZĞůĂƟŽŶƐZĞǀŝĞǁŽŶ
ƉĂŐĞƐϭϬϲƚŽϭϬϳĨŽƌŵŽƌĞŝŶĨŽƌŵĂƟŽŶ͘
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dŚĞƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞŚĞůƉĞĚƵƐƵŶůŽĐŬ
ǀĂůƵĞĂŶĚƐŚŽǁĐĂƐĞĚƚŚĞ͞ŚŝĚĚĞŶŐĞŵƐ͟
ŝŶŽƵƌ/ŶĚƵƐƚƌŝĂůĂŶĚDŽƚŽƌƐďƵƐŝŶĞƐƐĞƐƚŽ
ƚŚĞŵĂƌŬĞƚ͘/ƚĂůůŽǁĞĚ^ƚŽƌĞĮŶĞŽƵƌ
ĨŽĐƵƐŽŶŽƵƌĐŽƌĞƚƌĂĚŝŶŐĞdžƉĞƌƟƐĞŝŶƚŚĞ
ĂƵƚŽŵŽƟǀĞĂŶĚŚĞĂǀLJĞƋƵŝƉŵĞŶƚƐĞĐƚŽƌƐ
ĂĐƌŽƐƐƚŚĞƐŝĂWĂĐŝĮĐƌĞŐŝŽŶ͕ĂŶĚŐĂǀĞƵƐ
ĂƉůĂƞŽƌŵƚŽďƵŝůĚŽŶŽƵƌƐƚƌĞŶŐƚŚƐ͘tĞ
ĂůƐŽŚĂǀĞĂǀĂůƵĂďůĞŚĞĂůƚŚĐĂƌĞĐŽŵƉŽŶĞŶƚ
ƚŚƌŽƵŐŚŽƵƌũŽŝŶƚǀĞŶƚƵƌĞǁŝƚŚZĂŵƐĂLJ
,ĞĂůƚŚĂƌĞ͕ǁŚŝĐŚǁĞĂƌĞůŽŽŬŝŶŐƚŽ
ĞdžƉĂŶĚĂƐĂĐŽƌĞďƵƐŝŶĞƐƐ͘
dŚĞĨŽĐƵƐŽŶŽƵƌĐŽƌĞĞdžƉĞƌƟƐĞŝƐĞƐƉĞĐŝĂůůLJ
ƉĞƌƟŶĞŶƚǁŝƚŚƚŚĞǁŽƌůĚĨĂƐƚĞǀŽůǀŝŶŐĂƐ
ĂƌĞƐƵůƚŽĨƚĞĐŚŶŽůŽŐŝĐĂůĂĚǀĂŶĐĞŵĞŶƚ͘
tĞĂƌĞƉŽƐŝƟǀĞŝƚǁŝůůĂůůŽǁƵƐƚŽƌĞƐƉŽŶĚ
ƋƵŝĐŬĞƌƚŽƚŚĞĐŚĂŶŐŝŶŐďƵƐŝŶĞƐƐůĂŶĚƐĐĂƉĞ͘
dŚĞĞdžĞƌĐŝƐĞǁĂƐŶŽƚǁŝƚŚŽƵƚŝƚƐĐŚĂůůĞŶŐĞƐ͘
tĞŚĂǀĞƐůŝŵŵĂƌŐŝŶƐĚƵĞƚŽƚŚĞƚƌĂĚŝŶŐ
ŶĂƚƵƌĞŽĨŽƵƌďƵƐŝŶĞƐƐĂŶĚŽƵƌĞĂƌŶŝŶŐƐĂƌĞ
ƐƵƐĐĞƉƟďůĞƚŽĐŽŵŵŽĚŝƚLJĐLJĐůĞƐ͘,ĞŶĐĞ͕
ŐŽŽĚĐŽƐƚĂŶĚǁŽƌŬŝŶŐĐĂƉŝƚĂůŵĂŶĂŐĞŵĞŶƚ
ŝƐŝŵƉĞƌĂƟǀĞƚŽŵĂŶĂŐĞŽƵƌĐĂƐŚŇŽǁƐ͘tĞ
ĂůƐŽƐĞĞŬƚŽĞdžƉĂŶĚŽƵƌĂŌĞƌͲƐĂůĞƐďƵƐŝŶĞƐƐ
ĂŶĚĞdžƉůŽƌĞĂĚũĂĐĞŶĐŝĞƐƚŽƐƚƌĞŶŐƚŚĞŶŽƵƌ
ŵĂƌŐŝŶƐĂŶĚƐŵŽŽƚŚĞŶŽƵƌĞĂƌŶŝŶŐƐƉƌŽĮůĞ͘
&ŽƌƚƵŶĂƚĞůLJ͕ŽƵƌƐƚƌŽŶŐďĂůĂŶĐĞƐŚĞĞƚŐŝǀĞƐ
ƵƐƌŽŽŵƚŽŵĂŶŽĞƵǀƌĞ͘tŝƚŚĂƐŵĂůůĞƌ
ĂŶĚůĞĂŶĞƌŽƌŐĂŶŝƐĂƟŽŶ͕ǁĞĂƌĞŵŝŶĚĨƵů
ƚŚĂƚĂƐƚƵƚĞĐĂƉŝƚĂůĂůůŽĐĂƟŽŶŝŶƉƵƌƐƵŝŶŐ
ŝŶǀĞƐƚŵĞŶƚŽƉƉŽƌƚƵŶŝƟĞƐŝƐĞƐƐĞŶƟĂů͘
KƵƌĐŽƌƉŽƌĂƚĞƐƚƌƵĐƚƵƌĞĂƐĂƚϯϬ:ƵŶĞϮϬϭϴ
ŝƐŽŶƉĂŐĞϴ͘
RISK MANAGEMENT
/ĚĞŶƟĨLJŝŶŐĂŶĚŵĂŶĂŐŝŶŐƌŝƐŬƐĂƌĞĐĞŶƚƌĂůƚŽ
ŽƵƌƐƚƌĂƚĞŐŝĐƉůĂŶŶŝŶŐƉƌŽĐĞƐƐĂŶĚĞŶŚĂŶĐĞƐ
ůŽŶŐͲƚĞƌŵƐŚĂƌĞŚŽůĚĞƌǀĂůƵĞ͘dŚĞŽĂƌĚ͛Ɛ
ZŝƐŬDĂŶĂŐĞŵĞŶƚŽŵŵŝƩĞĞŝĚĞŶƟĮĞƐ͕
ĞǀĂůƵĂƚĞƐĂŶĚŵĂŶĂŐĞƐĮŶĂŶĐŝĂůĂŶĚ
ŶŽŶͲĮŶĂŶĐŝĂůƌŝƐŬƐ͕ďLJĂƉƉůLJŝŶŐĂƚĂŝůŽƌĞĚ
ZŝƐŬDĂŶĂŐĞŵĞŶƚ&ƌĂŵĞǁŽƌŬ͘
/Ŷ&zϮϬϭϴ͕ǁĞŶŽƚĞĚƐĞǀĞƌĂůĚŝƐƌƵƉƟǀĞ
ƚƌĞŶĚƐƚŚĂƚǁĞƌĞďƌŽƵŐŚƚĂďŽƵƚďLJĂĚǀĂŶĐĞƐ
ŝŶƚĞĐŚŶŽůŽŐLJ͘&ŽƌDŽƚŽƌƐ͕ŽŵŶŝͲĐŚĂŶŶĞů
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ƐĂůĞƐƉŽƌƚĂůƐŵĂLJĐĂƵƐĞĚŝƐŝŶƚĞƌŵĞĚŝĂƟŽŶŽĨ /ǁŽƵůĚůŝŬĞƚŽƚŚĂŶŬŵLJĐŽůůĞĂŐƵĞƐŽŶƚŚĞ
ŽƵƌďƵƐŝŶĞƐƐǁŚŝůĞƚŚĞŽŶƐĞƚŽĨƌŝĚĞͲƐŚĂƌŝŶŐ ŽĂƌĚĨŽƌƚŚĞŝƌƐƵďƐƚĂŶƟĂůĐŽŶƚƌŝďƵƟŽŶƐ
ĂŶĚĂƵƚŽŶŽŵŽƵƐǀĞŚŝĐůĞƐŚĂƐƚŚĞƉŽƚĞŶƟĂů ƚŚŝƐLJĞĂƌ͕ĂŶĚĨŽƌƉŽƐŝƟŽŶŝŶŐƚŚĞďƵƐŝŶĞƐƐƚŽ
ƚŽĚĞĐƌĞĂƐĞĐĂƌƉƵƌĐŚĂƐĞƐ͘&ŽƌƚŚĞ/ŶĚƵƐƚƌŝĂů ƐƵĐĐĞĞĚĨŽƌLJĞĂƌƐƚŽĐŽŵĞ͘
ĚŝǀŝƐŝŽŶ͕ƚŚĞƐŚŝŌƚŽƌĞŶĞǁĂďůĞĞŶĞƌŐLJ
ƐŽƵƌĐĞƐŵĂLJŝŵƉĂĐƚĚĞŵĂŶĚĨŽƌĐŽĂů͕ĂŶ ĂƟŶWĂĚƵŬĂ<ĂƌƟŶŝ,ũďĚƵůDĂŶĂĨŚĂƐ
ŝŵƉŽƌƚĂŶƚĐŽŵŵŽĚŝƚLJĨŽƌŽƵƌĐƵƐƚŽŵĞƌƐ͘ ĞdžƉƌĞƐƐĞĚŚĞƌŝŶƚĞŶƟŽŶƚŽƌĞƟƌĞĂƐĂ
tĞĂƌĞĐŽŶƐĐŝŽƵƐŽĨƚŚĞƐĞƚŚƌĞĂƚƐĂŶĚĂƌĞ EŽŶͲ/ŶĚĞƉĞŶĚĞŶƚEŽŶͲdžĞĐƵƟǀĞŝƌĞĐƚŽƌ
ĚĞǀĞůŽƉŝŶŐ͞ĨƵƚƵƌĞƉƌŽŽĮŶŐ͟ƐƚƌĂƚĞŐŝĞƐ ĂŶĚǁŽƵůĚƚŚĞƌĞĨŽƌĞŶŽƚďĞƐĞĞŬŝŶŐĨŽƌ
ƚŚĂƚǁŝůůŚĞůƉƚŽĐŽƵŶƚĞƌƚŚĞƐĞƚƌĞŶĚƐĂŶĚ ĞůĞĐƟŽŶĂƚƚŚĞĨŽƌƚŚĐŽŵŝŶŐŶŶƵĂů'ĞŶĞƌĂů
ƉŽƐŝƟŽŶƵƐƐƚƌĂƚĞŐŝĐĂůůLJĨŽƌƚŚĞĨƵƚƵƌĞ͘ DĞĞƟŶŐŽĨƚŚĞĐŽŵƉĂŶLJ͘/ǁŽƵůĚůŝŬĞƚŽ
ƚŚĂŶŬĂƟŶWĂĚƵŬĂ<ĂƌƟŶŝĨŽƌŚĞƌĚĞĚŝĐĂƚĞĚ
&ŽƌŵŽƌĞŝŶĨŽƌŵĂƟŽŶĂďŽƵƚŚŽǁǁĞ ƐĞƌǀŝĐĞĂŶĚĐŽŵŵŝƚŵĞŶƚĚƵƌŝŶŐŚĞƌƚĞŶƵƌĞ
ŵĂŶĂŐĞƌŝƐŬ͕ƉůĞĂƐĞƌĞĨĞƌƚŽŽƵƌ^ƚĂƚĞŵĞŶƚ ŽĨƐĞƌǀŝĐĞǁŝƚŚ^͘
ŽŶZŝƐŬDĂŶĂŐĞŵĞŶƚĂŶĚ/ŶƚĞƌŶĂůŽŶƚƌŽů
ŽŶƉĂŐĞƐϵϵƚŽϭϬϱ͘ DLJŚĞĂƌƞĞůƚŐƌĂƟƚƵĚĞĂůƐŽŐŽĞƐŽƵƚƚŽƚŚĞ
ŵĂŶĂŐĞŵĞŶƚƚĞĂŵĂŶĚĂůůŵĞŵďĞƌƐŽĨ
SUSTAINABILITY ƚŚĞ^ƚĞĂŵĂƌŽƵŶĚƚŚĞŐůŽďĞĨŽƌƚŚĞŝƌ
^ŚĂƐĂůǁĂLJƐĞŶĚĞĂǀŽƵƌĞĚƚŽ ŽƵƚƐƚĂŶĚŝŶŐĐŽŵŵŝƚŵĞŶƚĂŶĚƉĞƌĨŽƌŵĂŶĐĞ͕
ŽƉĞƌĂƚĞŝŶĂŶĞĐŽŶŽŵŝĐĂůůLJ͕ƐŽĐŝĂůůLJĂŶĚ ƉĂƌƟĐƵůĂƌůLJĚƵƌŝŶŐƚŚŝƐƚƌĂŶƐĨŽƌŵĂƟǀĞ
ĞŶǀŝƌŽŶŵĞŶƚĂůůLJƐƵƐƚĂŝŶĂďůĞŵĂŶŶĞƌ͕ ƉĞƌŝŽĚ͘tŝƚŚLJŽƵƌƵŶǁĂǀĞƌŝŶŐƐƵƉƉŽƌƚ͕ǁĞ
ǁŚŝůƐƚďĂůĂŶĐŝŶŐƚŚĞŝŶƚĞƌĞƐƚƐŽĨĚŝǀĞƌƐĞ ĂƌĞǁĞůůƉŽƐŝƟŽŶĞĚƚŽĂĐĐĞůĞƌĂƚĞŽƵƌŐƌŽǁƚŚ
ƐƚĂŬĞŚŽůĚĞƌƐ͘&ŽůůŽǁŝŶŐƚŚĞƉƵƌĞͲƉůĂLJ ĂŶĚŝŵƉƌŽǀĞŽƵƌƉĞƌĨŽƌŵĂŶĐĞ͘
ĞdžĞƌĐŝƐĞ͕ǁĞŚĂǀĞƌĞĚĞĮŶĞĚƐƵƐƚĂŝŶĂďŝůŝƚLJ
ŝŶĂǁĂLJƚŚĂƚŝƐƌĞůĞǀĂŶƚƚŽŽƵƌDŽƚŽƌƐĂŶĚ
/ŶĚƵƐƚƌŝĂůďƵƐŝŶĞƐƐŵŽĚĞůƐ͘ TAN SRI DATO’ SRI DR WAN ABDUL AZIZ
WAN ABDULLAH
KƵƌĨƵƚƵƌĞĨŽĐƵƐǁŝůůďĞŽŶƚŚĞĨŽůůŽǁŝŶŐ ŚĂŝƌŵĂŶ
ƐƵƐƚĂŝŶĂďŝůŝƚLJŵĂƩĞƌƐ͗
• ƵƐŝŶĞƐƐƚŚŝĐƐĂŶĚŽŵƉůŝĂŶĐĞ͖
• KĐĐƵƉĂƟŽŶĂů,ĞĂůƚŚĂŶĚ^ĂĨĞƚLJ͖
• ŶǀŝƌŽŶŵĞŶƚĂů^ƵƐƚĂŝŶĂďŝůŝƚLJ͖
• ŵƉůŽLJĞĞĞǀĞůŽƉŵĞŶƚĂŶĚ
ŶŐĂŐĞŵĞŶƚ͖
• &ĂŝƌŵƉůŽLJŵĞŶƚWƌĂĐƟĐĞƐ͖ĂŶĚ
• ŽŵŵƵŶŝƚLJŽŶƚƌŝďƵƟŽŶƐĂŶĚ
ĞǀĞůŽƉŵĞŶƚ͘
KƵƌĚĞƚĂŝůĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚƐƚĂƌƚƐ
ŽŶƉĂŐĞϱϵ͘
ACKNOWLEDGEMENTS
KŶďĞŚĂůĨŽĨƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ͕/ǁŽƵůĚ
ůŝŬĞƚŽƌĞĐŽƌĚŵLJĂƉƉƌĞĐŝĂƟŽŶƚŽĂůůŽƵƌ
ǀĂůƵĞĚƐƚĂŬĞŚŽůĚĞƌƐĨŽƌƚŚĞŝƌĐŽŶƟŶƵĞĚ
ƚƌƵƐƚ͕ůŽLJĂůƚLJĂŶĚƐƵƉƉŽƌƚ͕ĂŶĚĨŽƌƐƚĂŶĚŝŶŐ
ĂůŽŶŐƐŝĚĞƵƐĂƐǁĞĞŵďĂƌŬŽŶƚŚŝƐĞdžĐŝƟŶŐ
ŐƌŽǁƚŚƉŚĂƐĞ͘
SIME DARBY BERHAD
GROUP CHIEF
EXECUTIVE OFFICER’S
REVIEW
DEAR VALUED SHAREHOLDERS,

^ŝŵĞĂƌďLJĞƌŚĂĚŝƐƚŽĚĂLJůĞĂŶĞƌĂŶĚĨŽĐƵƐĞĚŽŶŽƵƌ
ŚĞĂǀLJĞƋƵŝƉŵĞŶƚĂŶĚŵŽƚŽƌƐŽƉĞƌĂƟŽŶƐ͕ǁŝƚŚƚŚĞůŝƐƟŶŐ
ŽĨŽƵƌƉůĂŶƚĂƟŽŶĂŶĚƉƌŽƉĞƌƚLJŝǀŝƐŝŽŶƐĂƐƉƵƌĞͲƉůĂLJƐ
ŝŶEŽǀĞŵďĞƌϮϬϭϳ͘tĞĂƌĞƉŽǁĞƌŝŶŐƵƉŽƵƌ/ŶĚƵƐƚƌŝĂů
ĂŶĚDŽƚŽƌƐŝǀŝƐŝŽŶƐ͕ďŽƚŚĂůƌĞĂĚLJůĞĂĚŝŶŐůŝŐŚƚƐŝŶƚŚĞŝƌ
ƌĞƐƉĞĐƟǀĞƐĞĐƚŽƌƐ͕ƚŽƐƚŽƵƌĞĂƌŶŝŶŐƐĂŶĚĐƌĞĂƚĞŵŽƌĞ
ǀĂůƵĞĨŽƌŽƵƌƐƚĂŬĞŚŽůĚĞƌƐ͘

STRATEGIC REVIEW
ƵƌŝŶŐƚŚĞLJĞĂƌ͕ǁĞŝŵƉůĞŵĞŶƚĞĚĂsĂůƵĞƌĞĂƟŽŶWůĂŶ
ƚŚĂƚŽƵƚůŝŶĞƐĂĐůĞĂƌƉĂƚŚďĞƚǁĞĞŶǁŚĞƌĞǁĞĂƌĞŶŽǁ
ĂŶĚǁŚĞƌĞǁĞǁĂŶƚƚŽďĞŝŶĮǀĞLJĞĂƌƐ͛ƟŵĞ͘dŚĞWůĂŶ
ŝĚĞŶƟĮĞƐĨŽƵƌƉƌŝŵĂƌLJĂƌĞĂƐƚŚĂƚǁĞǁŝůůĨŽĐƵƐŽŶĂŶĚ
ƐĞƚƐĂŵďŝƟŽƵƐƚĂƌŐĞƚƐĨŽƌŽƵƌ/ŶĚƵƐƚƌŝĂůĂŶĚDŽƚŽƌƐ
ŝǀŝƐŝŽŶƐ͘tĞǁŝůůďĞĂŐŐƌĞƐƐŝǀĞůLJƉƵƌƐƵŝŶŐƌĞƐƵůƚƐŝŶ
ƚŚĞƐĞĨŽƵƌĂƌĞĂƐ͗
• ZĞǀĞŶƵĞĞŶŚĂŶĐĞŵĞŶƚ
• ŽƐƚŽƉƟŵŝƐĂƟŽŶ
• ƵƐŝŶĞƐƐĞdžƉĂŶƐŝŽŶ
• WŽƌƞŽůŝŽƌĂƟŽŶĂůŝƐĂƟŽŶ

We implemented a Value Creation

Plan that outlines a clear path
between where we are now and
ZKHUHZHZDQWWREHLQÀYH\HDUV·
time.

ANNUAL REPORT 2018 page 25

 Revenue enhancement

tĞǁŝůůĐŽŶƟŶƵĞŽƵƌĨŽĐƵƐŽŶĚƌŝǀŝŶŐƵŶŝƚƐĂůĞƐĨŽƌŽƵƌ/ŶĚƵƐƚƌŝĂůŝǀŝƐŝŽŶďLJĐĂƉŝƚĂůŝƐŝŶŐŽŶƚŚĞƌĞĐŽǀĞƌLJŽĨƚŚĞŵŝŶŝŶŐƐĞĐƚŽƌĂŶĚƚŚĞ
ŝŶĐƌĞĂƐĞĚƐƉĞŶĚŽŶŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͘ƐĨŽƌŽƵƌDŽƚŽƌƐŝǀŝƐŝŽŶ͕ǁĞĂŝŵƚŽƚĂŬĞĨƵůůĂĚǀĂŶƚĂŐĞŽĨƚŚĞďƵƌŐĞŽŶŝŶŐĚĞŵĂŶĚĨŽƌůƵdžƵƌLJĂŶĚ
ƐƵƉĞƌͲůƵdžƵƌLJĐĂƌƐŝŶƐŝĂ͕ƚŚĞǁŽƌůĚ͛ƐĨĂƐƚĞƐƚŐƌŽǁŝŶŐƌĞŐŝŽŶ͘^ŝŵƵůƚĂŶĞŽƵƐůLJ͕ǁĞǁŝůůĨŽĐƵƐŽŶƚŚĞŐƌŽǁƚŚĂŶĚĞĸĐŝĞŶĐLJŽĨŽƵƌĂŌĞƌͲƐĂůĞƐ
ďƵƐŝŶĞƐƐƚŽŝŵƉƌŽǀĞŵĂƌŐŝŶƐĂŶĚŝŶĐƌĞĂƐĞƌĞĐƵƌƌŝŶŐŝŶĐŽŵĞ͘tĞĂƌĞĐŽŶƐĐŝŽƵƐŽĨƚŚĞƌĂƉŝĚĂĚǀĂŶĐĞŵĞŶƚŽĨƚĞĐŚŶŽůŽŐLJŝŶŽƵƌƐĞĐƚŽƌƐ
ƐƵĐŚĂƐŽŵŶŝͲĐŚĂŶŶĞůƐĂůĞƐƉŽƌƚĂůƐ͕ƌŝĚĞƐŚĂƌŝŶŐ͕ĞůĞĐƚƌŝĮĐĂƟŽŶĂŶĚĂƵƚŽŶŽŵŽƵƐǀĞŚŝĐůĞƐ͘/ŶůŝŶĞǁŝƚŚƚŚŝƐ͕ĚŝŐŝƚĂůŝƐĂƟŽŶŝŶŝƟĂƟǀĞƐĂƌĞ
ďĞŝŶŐĞdžƉůŽƌĞĚƚŽĞŶŚĂŶĐĞĐƵƐƚŽŵĞƌĞdžƉĞƌŝĞŶĐĞ͕ŝŶĐƌĞĂƐĞĞĸĐŝĞŶĐLJĂŶĚƚŽŐƌŽǁŽƵƌŵĂƌŬĞƚƐŚĂƌĞ͘

ŽƐƚŽƉƟŵŝƐĂƟŽŶ

ŽƐƚŽƉƟŵŝƐĂƟŽŶŝƐĐƌŝƟĐĂůŝŶƐƚƌĞŶŐƚŚĞŶŝŶŐŽƵƌƌĞƐŝůŝĞŶĐĞĚƵƌŝŶŐĚŽǁŶĐLJĐůĞƐ͘&ŽƌƚŚŝƐ͕ŽƉĞƌĂƟŽŶĂůĞdžĐĞůůĞŶĐĞŝŶŝƟĂƟǀĞƐƚŽŝŵƉƌŽǀĞ
ĞĸĐŝĞŶĐLJ͕ƌĞĚƵĐĞĐŽƐƚĂŶĚĞŶŚĂŶĐĞŵĂƌŐŝŶƐǁŝůůďĞŝŶƐƟƚƵƚĞĚ͘dŚŝƐŝŶĐůƵĚĞƐǀĞŶĚŽƌĐŽŶƐŽůŝĚĂƟŽŶŵĞĂƐƵƌĞƐ͕ƉƌŽĐĞƐƐƐƚĂŶĚĂƌĚŝƐĂƟŽŶ͕
ƉƌŽĐĞƐƐĂƵƚŽŵĂƟŽŶ͕ƉĂƉĞƌůĞƐƐŝŶŝƟĂƟǀĞƐĂŶĚƉƌŽĐƵƌĞŵĞŶƚĐŽŶƚƌŽůƐ͘ŝŐŝƚĂůŝƐĂƟŽŶǁŝůůďĞĞdžƉůŽƌĞĚƚŽĨƵƌƚŚĞƌĚƌŝǀĞĞĸĐŝĞŶĐLJŝŶĂƌĞĂƐ
ƐƵĐŚĂƐƐĞƌǀŝĐĞĐĞŶƚƌĞŽƉƟŵŝƐĂƟŽŶ͕ƉƌĞĚŝĐƟǀĞŵĂŝŶƚĞŶĂŶĐĞĂŶĚĐƵƐƚŽŵĞƌĂŶĂůLJƟĐƐ͘ůĞĂƌƉůĂŶƐǁŝůůďĞĨŽƌŵƵůĂƚĞĚƚŽƚƵƌŶĂƌŽƵŶĚ
ƵŶĚĞƌƉĞƌĨŽƌŵŝŶŐďƵƐŝŶĞƐƐĞƐ͘/Ŷ&zϮϬϭϴ͕ǁĞůĂƵŶĐŚĞĚWƌŽũĞĐƚZd͕ĂƉůĂŶƚŽƌĂƟŽŶĂůŝƐĞŵĂŶƉŽǁĞƌĂŶĚŽƉƟŵŝƐĞďƌĂŶĐŚŶĞƚǁŽƌŬ
ŝŶƚŚĞ/ŶĚƵƐƚƌŝĂůŝǀŝƐŝŽŶ͘

ƵƐŝŶĞƐƐĞdžƉĂŶƐŝŽŶ

ƵƐŝŶĞƐƐĞdžƉĂŶƐŝŽŶǁŝůůďĞƵŶĚĞƌƚĂŬĞŶŽƌŐĂŶŝĐĂůůLJĂŶĚǀŝĂŵĞƌŐĞƌƐĂŶĚĂĐƋƵŝƐŝƟŽŶƐ;DΘͿ͘tĞǁŝůůĞdžƉůŽƌĞŽƌŐĂŶŝĐĞdžƉĂŶƐŝŽŶŝŶƚŽ
ĂĚũĂĐĞŶƚďƵƐŝŶĞƐƐĞƐƐƵĐŚĂƐǀĞŚŝĐůĞĂƐƐĞŵďůLJ͕ĂƐƐĞƚŵĂŶĂŐĞŵĞŶƚĂŶĚĞŶĞƌŐLJƐŽůƵƟŽŶƐƚŽďƌŽĂĚĞŶŽƵƌĞĂƌŶŝŶŐƐďĂƐĞĂŶĚŝŶĐƌĞĂƐĞƚŚĞ
ƌĞĐƵƌƌŝŶŐŝŶĐŽŵĞƉƌŽĮůĞŽĨŽƵƌďƵƐŝŶĞƐƐĞƐ͘dŚĞůĂƵŶĐŚŽĨƚŚĞDtĞŶŐŝŶĞĨĂĐŝůŝƚLJŝŶ<Ƶůŝŵ͕<ĞĚĂŚƚŚŝƐLJĞĂƌŝƐŝŶůŝŶĞǁŝƚŚƚŚŝƐƉůĂŶĂŶĚ
ǁĞĂƌĞůŽŽŬŝŶŐĂƚŵŽƌĞĂƐƐĞŵďůLJŽƉƟŽŶƐ͘ŝƐĐŝƉůŝŶĞĚƉƵƌƐƵŝƚŽĨDΘŝƐĂůǁĂLJƐĂƐƚƌĂƚĞŐLJƚŽŐĂŝŶƐĐĂůĞ͕ĂĐĐĞƐƐŵĂƌŬĞƚƐĂŶĚĚŝǀĞƌƐŝĨLJŝŶƚŽ
ŶĞǁŵĂƌƋƵĞƐ͘tĞĂƌĞĂůǁĂLJƐŽŶƚŚĞůŽŽŬŽƵƚĨŽƌŐƌĞĂƚďƵƐŝŶĞƐƐĞƐƚŚĂƚĮƚŝŶƚŽŽƵƌƐƚƌĂƚĞŐŝĐƉůĂŶƐ͘/ŶƚŚŝƐƌĞƐƉĞĐƚ͕ĚƵƌŝŶŐƚŚĞLJĞĂƌƵŶĚĞƌ
ƌĞǀŝĞǁ͕ǁĞĐŽŵƉůĞƚĞĚƚŚĞĂĐƋƵŝƐŝƟŽŶŽĨůĨĂZŽŵĞŽ͕&ŝĂƚĂŶĚsŽůǀŽĚĞĂůĞƌƐŚŝƉƐŝŶƵƐƚƌĂůŝĂ͘,ĞĂůƚŚĐĂƌĞŝƐĂǀĂůƵĂďůĞĐŽŵƉŽŶĞŶƚŝŶŽƵƌ
ƉŽƌƞŽůŝŽĂŶĚǁĞǁŝůůĞdžƉůŽƌĞŵŽƌĞŽƉƉŽƌƚƵŶŝƟĞƐƚŽŐƌŽǁƚŚŝƐďƵƐŝŶĞƐƐ͘

WŽƌƞŽůŝŽƌĂƟŽŶĂůŝƐĂƟŽŶ

/ŶůŝŶĞǁŝƚŚŽƵƌƉƵƌĞͲƉůĂLJƐƚƌĂƚĞŐLJ͕ĂƌĞǀŝĞǁŽĨŽƵƌŶŽŶͲĐŽƌĞĂƐƐĞƚƐŚĂƐďĞĞŶĐŽŶĚƵĐƚĞĚĂŶĚĂƐƚƌĂƚĞŐŝĐĚŝƐƉŽƐĂůƉůĂŶŚĂƐďĞĞŶ
ĚĞǀĞůŽƉĞĚ͘KƵƌĂŝŵŝƐĨŽƌĂƐƚƌĞĂŵůŝŶĞĚƉŽƌƞŽůŝŽƚŽŚĞůƉƵƐƌĞĚĞƉůŽLJĐĂƉŝƚĂůƚŽŽƵƌĐŽƌĞďƵƐŝŶĞƐƐĞƐĂŶĚƐŚĂƌƉĞŶŵĂŶĂŐĞŵĞŶƚĨŽĐƵƐ͘
dŽǁĂƌĚƐƚŚŝƐĞŶĚ͕ĚƵƌŝŶŐƚŚĞLJĞĂƌƵŶĚĞƌƌĞǀŝĞǁ͕ǁĞƵŶĚĞƌƚŽŽŬƚŚĞĚŝƐƉŽƐĂůŽĨŽƵƌϭϬϬйƐƚĂŬĞŝŶtĞŝĨĂŶŐtĂƚĞƌ͘

PEOPLE
KƵƌƉĞŽƉůĞĂƌĞƚŚĞŚĞĂƌƚďĞĂƚŽĨŽƵƌďƵƐŝŶĞƐƐ͘/ŶŽƌĚĞƌƚŽĂĐŚŝĞǀĞŽƵƌŐŽĂůƐ͕
ŝƚŝƐŝŵƉĞƌĂƟǀĞƚŚĂƚǁĞĐŽŶƟŶƵĞƚŽŶƵƌƚƵƌĞĂŶĚĚĞǀĞůŽƉĂŵŽƟǀĂƚĞĚĂŶĚ
ĞŶŐĂŐĞĚǁŽƌŬĨŽƌĐĞƚŽĞdžĞĐƵƚĞŽƵƌƐƚƌĂƚĞŐLJĂŶĚƉůĂŶƐĂĐƌŽƐƐƚŚĞ'ƌŽƵƉ͘
dŽƐƉĞĂƌŚĞĂĚƚŚŝƐ͕ǁĞŚĂǀĞĂƉƉŽŝŶƚĞĚĂŶĞǁ'ƌŽƵƉŚŝĞĨ,ƵŵĂŶZĞƐŽƵƌĐĞƐ
KĸĐĞƌǁŚŽǁŝůůĚƌŝǀĞŽƵƌƚĂůĞŶƚĚĞǀĞůŽƉŵĞŶƚŝŶŝƟĂƟǀĞƐ͘
ŚŝŶĂ͛ƐĞĐŽŶŽŵLJŚĂƐƉĞƌĨŽƌŵĞĚǁĞůůŝŶϮϬϭϳ͕ĂĐŚŝĞǀŝŶŐĂ
'WŐƌŽǁƚŚŽĨϲ͘ϵй͘dŚŝƐŐƌŽǁƚŚǁĂƐƌĞŇĞĐƚĞĚŝŶƐƚƌŽŶŐ
ŝŶĨƌĂƐƚƌƵĐƚƵƌĞƐƉĞŶĚ;Ϯϳ͘ϴйŽĨŚŝŶĂ͛ƐƚŽƚĂůĮdžĞĚĂƐƐĞƚ
ŝŶǀĞƐƚŵĞŶƚŝŶϮϬϭϳͿ͘^ďĞŶĞĮƩĞĚĨƌŽŵƚŚŝƐƚƌĞŶĚ
ǁŚŝĐŚƚƌĂŶƐůĂƚĞĚŝŶƚŽŝŶĐƌĞĂƐĞĚĚĞŵĂŶĚĨŽƌĂƚĞƌƉŝůůĂƌ
ĞƋƵŝƉŵĞŶƚ͘

ZĞĂĚŵŽƌĞŽŶŽƵƌĞŵƉůŽLJĞĞĚĞǀĞůŽƉŵĞŶƚĂŶĚĞŶŐĂŐĞŵĞŶƚŝŶŝƟĂƟǀĞƐŽŶ
ƉĂŐĞƐϲϰƚŽϲϲ͘
FY2018 REVIEW
^ŝƐĂůĞĂĚŝŶŐ/ŶĚƵƐƚƌŝĂůĂŶĚDŽƚŽƌƐŵƵůƟŶĂƟŽŶĂůĐŽƌƉŽƌĂƟŽŶǁŝƚŚĂďƌŽĂĚ
ĨŽŽƚƉƌŝŶƚĂĐƌŽƐƐƐŝĂWĂĐŝĮĐĂŶĚƐƚƌŽŶŐƉĂƌƚŶĞƌƐŚŝƉƐǁŝƚŚǁŽƌůĚůĞĂĚŝŶŐ
ďƌĂŶĚƐ͘EŽƚǁŝƚŚƐƚĂŶĚŝŶŐŽƵƌDĂůĂLJƐŝĂŶŚŽŵĞďĂƐĞ͕ϴϲйŽĨƌĞǀĞŶƵĞƐĂƌĞ
ŐĞŶĞƌĂƚĞĚŽƵƚƐŝĚĞDĂůĂLJƐŝĂ͖ǁŝƚŚ'ƌĞĂƚĞƌŚŝŶĂĂŶĚƵƐƚƌĂůĂƐŝĂďĞŝŶŐŽƵƌ
ŵŽƐƚŝŵƉŽƌƚĂŶƚŵĂƌŬĞƚƐ;ϯϴйĂŶĚϯϬйŽĨƚŽƚĂůƌĞǀĞŶƵĞ͕ƌĞƐƉĞĐƟǀĞůLJͿ͘
INDUSTRIAL
dŚĞƵƉƟĐŬŝŶƚŚĞŵŝŶŝŶŐƐĞĐƚŽƌŝŶƵƐƚƌĂůŝĂŚĂƐĐŽŶƚƌŝďƵƚĞĚƉŽƐŝƟǀĞůLJƚŽ
ŽƵƌĞĂƌŶŝŶŐƐ͘ĞŵĂŶĚĨŽƌĞƋƵŝƉŵĞŶƚĂŶĚĂŌĞƌͲƐĂůĞƐƉĂƌƚƐĂŶĚƐĞƌǀŝĐĞƐŚĂƐ
ŝŶĐƌĞĂƐĞĚĂƐƚŚĞŵŝŶŝŶŐŝŶĚƵƐƚƌLJĞŵĞƌŐĞƐĨƌŽŵƚŚĞĚŽǁŶƚƵƌŶŝŶƉƌĞǀŝŽƵƐ
LJĞĂƌƐ͘ŽĂůƉƌŝĐĞƐŚĂǀĞƐƚĂďŝůŝƐĞĚ͕ĚƌŝǀĞŶďLJƐƚĞĞůͲŵĂŬŝŶŐŝŶŚŝŶĂĂŶĚ
ƌĞŐŝŽŶĂůĚĞŵĂŶĚĨŽƌŚŝŐŚƋƵĂůŝƚLJƚŚĞƌŵĂůĐŽĂů͘KƵƚůŽŽŬĨŽƌŽƚŚĞƌŵĞƚĂůƐ
ůŝŬĞŵĂŶŐĂŶĞƐĞ͕ĐŽƉƉĞƌĂŶĚŶŝĐŬĞůŝƐĂůƐŽƉŽƐŝƟǀĞĚƵĞƚŽĞůĞĐƚƌŝĮĐĂƟŽŶĂŶĚ
ƵƌďĂŶŝƐĂƟŽŶ͘
ƐĂƌĞŇĞĐƟŽŶŽĨƚŚĞƐƚƌŽŶŐĚĞŵĂŶĚĨƌŽŵƵƐƚƌĂůŝĂ
ĂŶĚŚŝŶĂ͕ŽƵƌ/ŶĚƵƐƚƌŝĂůŝǀŝƐŝŽŶ͛ƐĐŽƌĞW/dũƵŵƉĞĚ
ƐŝŐŶŝĮĐĂŶƚůLJďLJϳϮйĨƌŽŵZDϮϱϯŵŝůůŝŽŶŝŶ&zϮϬϭϳƚŽ
ZDϰϯϰŵŝůůŝŽŶŝŶ&zϮϬϭϴ͘KƵƌŽƌĚĞƌŬŐƌĞǁďLJϴϬй
ƚŽZDϮ͘ϳďŝůůŝŽŶĂƐĂƚ:ƵŶĞϮϬϭϴĨƌŽŵZDϭ͘ϱďŝůůŝŽŶ
ĂƐĂƚ:ƵŶĞϮϬϭϳ͘
/ŶĂĚĚŝƟŽŶ͕ǁĞŚĂǀĞŝŶƐƟƚƵƚĞĚŶƵŵĞƌŽƵƐŽƉĞƌĂƟŽŶĂů
ĞdžĐĞůůĞŶĐĞŝŶŝƟĂƟǀĞƐ͕ŝŶĐůƵĚŝŶŐŝŵƉůĞŵĞŶƟŶŐůĞĂŶĞƌ
ƐƚƌƵĐƚƵƌĞƐ͕ǁŚŝĐŚŚĂƐĞŶĂďůĞĚƵƐƚŽĨŽĐƵƐŽŶƵƐŝŶŐ
ƚĞĐŚŶŽůŽŐLJĂŶĚŝŶŶŽǀĂƟŽŶƚŽƐĞƌǀĞŽƵƌĐƵƐƚŽŵĞƌƐďĞƩĞƌ͘
ŶŽŶůŝŶĞƐĂůĞƐƉŽƌƚĂůůĂƵŶĐŚĞĚŝŶŚŝŶĂĂŶĚƵƐƚƌĂůŝĂ
ŚĂƐƐƵĐĐĞƐƐĨƵůůLJĞŶŚĂŶĐĞĚĐƵƐƚŽŵĞƌĞdžƉĞƌŝĞŶĐĞĂŶĚ
ĐŽŶƚƌŝďƵƚĞĚƚŽŝŶĐƌĞĂƐĞĚŵĂƌŬĞƚƐŚĂƌĞ͘
&ŽƌĚĞĞƉĞƌŝŶƐŝŐŚƚƐŝŶƚŽƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨŽƵƌ/ŶĚƵƐƚƌŝĂů
ŝǀŝƐŝŽŶƐĞĞƉĂŐĞƐϯϱƚŽϰϯ͘

page 26 SIME DARBY BERHAD

MOTORS
KƵƌDŽƚŽƌƐŝǀŝƐŝŽŶƉŽƐƚĞĚƉŽƐŝƟǀĞƌĞƐƵůƚƐĨŽƌƚŚĞLJĞĂƌǁŝƚŚƐƚƌŽŶŐ
ƉĞƌĨŽƌŵĂŶĐĞĂĐƌŽƐƐŵŽƐƚŵĂƌŬĞƚƐ͘ŚŝŶĂŚĂƐďĞĞŶƚŚĞďŝŐŐĞƐƚ
ĐŽŶƚƌŝďƵƚŽƌ͕ĚƌŝǀĞŶďLJŝŶĐƌĞĂƐĞĚĐŽŶƐƵŵĞƌƐƉĞŶĚŽŶǀĞŚŝĐůĞƐ͘hŶŝƚ
ƐĂůĞƐŐƌĞǁĨƌŽŵϯϰ͕ϮϵϯŝŶ&zϮϬϭϳƚŽϯϱ͕ϲϬϭŝŶ&zϮϬϭϴ͘
/ŶDĂůĂLJƐŝĂ͕ǁĞŽĸĐŝĂƚĞĚƚŚĞŽƉĞŶŝŶŐŽĨĂŶĞǁDtĞŶŐŝŶĞ
ĂƐƐĞŵďůLJĨĂĐŝůŝƚLJŝŶ<Ƶůŝŵ͕<ĞĚĂŚƚŽŵĞĞƚƚŚĞĚĞŵĂŶĚĨŽƌůŽĐĂůůLJͲ
ĂƐƐĞŵďůĞĚǀĞŚŝĐůĞƐĂŶĚƚŽƐƵƉƉŽƌƚDt͛ƐĞdžƉŽƌƚŝŶŝƟĂƟǀĞƐ͘tĞ
ĂƌĞƉƌŽƵĚŽĨƚŚŝƐĂĐŚŝĞǀĞŵĞŶƚĂƐŝƚŝƐŽŶůLJƚŚĞƐĞĐŽŶĚDtĞŶŐŝŶĞ
ƉůĂŶƚŝŶƚŚĞƌĞŐŝŽŶ͕ĂŌĞƌdŚĂŝůĂŶĚ͘EĞǀĞƌƚŚĞůĞƐƐ͕ǀĞŚŝĐůĞƐĂůĞƐŝŶŽƵƌ
ŚŽŵĞĐŽƵŶƚƌLJǁĞƌĞůŽǁĞƌĐŽŵƉĂƌĞĚƚŽƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌ;ϭϲ͕ϲϭϭ
ƵŶŝƚƐŝŶ&zϮϬϭϴĂŶĚϭϳ͕ϲϲϯƵŶŝƚƐŝŶ&zϮϬϭϳͿŝŶĂŐĞŶĞƌĂůůLJƐůƵŐŐŝƐŚ
ŶĞǁǀĞŚŝĐůĞƐƐĂůĞƐŵĂƌŬĞƚ͕ĂůƚŚŽƵŐŚƚŚĞůƵdžƵƌLJƐĞŐŵĞŶƚƌĞŵĂŝŶĞĚ
ƌŽďƵƐƚ͘dŚĞ͞ƚĂdžŚŽůŝĚĂLJ͟ĨƌŽŵ:ƵŶĞƚŽƵŐƵƐƚϮϬϭϴƉƌŽǀŝĚĞĚĂ
ŵƵĐŚǁĞůĐŽŵĞĚƐƚƚŽƚŚĞůŽĐĂůĐĂƌŵĂƌŬĞƚ͘
/ŶŽƚŚĞƌƌĞŐŝŽŶƐ͕DŽƚŽƌƐƉŽƐƚĞĚĂŐŽŽĚƐĞƚŽĨŶƵŵďĞƌƐŝŶďŽƚŚ
ƵƐƚƌĂůŝĂĂŶĚEĞǁĞĂůĂŶĚ͘ƐƚĂďůĞĞĐŽŶŽŵLJĂŶĚůŽǁŝŶƚĞƌĞƐƚƌĂƚĞƐ
ƐƉƵƌƌĞĚŽƵƌƌĞƐƵůƚƐŝŶƵƐƚƌĂůŝĂ͕ǁŚŝůĞĂƩƌĂĐƟǀĞĮŶĂŶĐŝŶŐƌĂƚĞƐ͕
ĂďƵŽLJĂŶƚƚŽƵƌŝƐŵƐĞĐƚŽƌĂŶĚŝŶĐƌĞĂƐĞĚŐŽǀĞƌŶŵĞŶƚƐƉĞŶĚŽŶ
ŝŶĨƌĂƐƚƌƵĐƚƵƌĞǁŽƌŬĞĚŝŶŽƵƌĨĂǀŽƵƌŝŶEĞǁĞĂůĂŶĚ͘
dŚĞ&zϮϬϭϴƌĞƐƵůƚƐĨŽƌDŽƚŽƌƐǁĞƌĞŝŵƉĂĐƚĞĚďLJƚŚĞůŽƐƐĞƐĨƌŽŵ
ƚŚĞ'ƌŽƵƉ͛ƐĞdžŝƚŽĨƚŚĞDtďƵƐŝŶĞƐƐŝŶsŝĞƚŶĂŵ͕ǁŚŝĐŚǁĂƐĂŬĞLJ
ĨĂĐƚŽƌŝŶƚŚĞŝǀŝƐŝŽŶ͛ƐĚĞĐůŝŶĞŽĨϭϰ͘ϮйŝŶW/d͘džĐůƵĚŝŶŐƚŚŝƐĂŶĚ
ŽƚŚĞƌŽŶĞͲŽīŝƚĞŵƐ͕ƚŚĞŝǀŝƐŝŽŶ͛ƐĐŽƌĞW/dŝŶĐƌĞĂƐĞĚďLJϯ͘ϰйĂƐ
ĐŽŵƉĂƌĞĚƚŽ&zϮϬϭϳ͘
ŵŽƌĞĐŽŵƉƌĞŚĞŶƐŝǀĞƌĞƉŽƌƚĂďŽƵƚƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨŽƵƌ
DŽƚŽƌƐŝǀŝƐŝŽŶŝƐŽŶƉĂŐĞƐϰϰƚŽϱϮ͘
LOGISTICS
dŚĞ>ŽŐŝƐƟĐƐŝǀŝƐŝŽŶƌĞƉŽƌƚĞĚĂW/dŽĨZDϳϰŵŝůůŝŽŶĨŽƌ&zϮϬϭϴ͕
ĐŽŵƉĂƌĞĚƚŽZDϲϰŵŝůůŝŽŶŝŶ&zϮϬϭϳĚƵĞƚŽŚŝŐŚĞƌƚŚƌŽƵŐŚƉƵƚĂƚ
tĞŝĨĂŶŐWŽƌƚĂŶĚŚŝŐŚĞƌƉƌŽĮƚƐĨƌŽŵtĞŝĨĂŶŐtĂƚĞƌ͘/ŶůŝŶĞǁŝƚŚ
^ŝŵĞĂƌďLJĞƌŚĂĚ͛ƐƐƚƌĂƚĞŐLJƚŽƐƚƌĞĂŵůŝŶĞŝƚƐƉŽƌƞŽůŝŽ͕ƚŚĞǁĂƚĞƌ
ƚƌĞĂƚŵĞŶƚĐŽŵƉĂŶLJŝŶtĞŝĨĂŶŐŚĂƐďĞĞŶĚŝǀĞƐƚĞĚ͘dŚĞƚƌĂŶƐĂĐƟŽŶ
ǁĂƐĐŽŵƉůĞƚĞĚŝŶ^ĞƉƚĞŵďĞƌϮϬϭϴ͘
ZĞĂĚŵŽƌĞĂďŽƵƚƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨŽƵƌ>ŽŐŝƐƟĐƐŝǀŝƐŝŽŶ
ŽŶƉĂŐĞƐϱϯƚŽϱϴ͘
ANNUAL REPORT 2018
HEALTHCARE
ZĂŵƐĂLJ^ŝŵĞĂƌďLJ,ĞĂůƚŚĂƌĞ͕^ŝŵĞĂƌďLJĞƌŚĂĚ͛ƐϱϬ͗ϱϬ
ũŽŝŶƚǀĞŶƚƵƌĞǁŝƚŚZĂŵƐĂLJ,ĞĂůƚŚĂƌĞĂĐŚŝĞǀĞĚŚŝŐŚĞƌƌĞǀĞŶƵĞ
ŝŶ&zϮϬϭϴĂƐĐŽŵƉĂƌĞĚƚŽ&zϮϬϭϳ͕ǁŚŝĐŚĐŽŶƚƌŝďƵƚĞĚƚŽĂϱϴй
ŝŶĐƌĞĂƐĞŝŶ^ŝŵĞĂƌďLJĞƌŚĂĚ͛ƐƐŚĂƌĞŽĨƉƌŽĮƚƐ͘dŚĞũŽŝŶƚǀĞŶƚƵƌĞ͛Ɛ
DĂůĂLJƐŝĂŶŽƉĞƌĂƟŽŶƐƌĞŐŝƐƚĞƌĞĚŝŵƉƌŽǀĞĚƌĞƐƵůƚƐĨƌŽŵŚŝŐŚĞƌ
ƌĞǀĞŶƵĞĂŶĚůŽǁĞƌĐŽƌƉŽƌĂƚĞĞdžƉĞŶƐĞƐ͘
OUTLOOK
DŽǀŝŶŐĨŽƌǁĂƌĚ͕ǁĞĂƌĞĐĂƵƟŽƵƐůLJŽƉƟŵŝƐƟĐŽŶƚŚĞĐŽŶƟŶƵĞĚ
ŵŽŵĞŶƚƵŵŝŶƚŚĞƵƐƚƌĂůŝĂŶŵŝŶŝŶŐƐĞĐƚŽƌ͘dŚĞƌĞŚĂƐďĞĞŶ
ƵŶĚĞƌͲŝŶǀĞƐƚŵĞŶƚĂĐƌŽƐƐŵŝŶŝŶŐŽǀĞƌƚŚĞůĂƐƚƐĞǀĞƌĂůLJĞĂƌƐĂŶĚĂƐ
ĐŽŵŵŽĚŝƚLJĚĞŵĂŶĚƌĞƚƵƌŶƐ͕ƐƵƉƉůLJŝƐĞdžƉĞĐƚĞĚƚŽďĞĐŽŶƐƚƌĂŝŶĞĚ
ƵŶƟůŝŶǀĞƐƚŵĞŶƚŝŶŶĞǁĞƋƵŝƉŵĞŶƚĂŶĚŶĞǁŵŝŶĞƐĐĂƚĐŚƵƉ͘dŚŝƐ
ďŽĚĞƐǁĞůůĨŽƌĚĞŵĂŶĚĨŽƌŚĞĂǀLJĞƋƵŝƉŵĞŶƚƉƌŽĚƵĐƚƐ͘
KŶƚŚĞDŽƚŽƌƐĨƌŽŶƚ͕ŶĞǁŵŽĚĞůůĂƵŶĐŚĞƐĂƌĞƵŶĚĞƌǁĂLJĂŶĚ
ĂƌĞĞdžƉĞĐƚĞĚƚŽĞŶŚĂŶĐĞƵŶŝƚƐĂůĞƐ͘dŚĞůĂƵŶĐŚŽĨƚŚĞŶĞǁDt
ϯͲƐĞƌŝĞƐǁŚŝĐŚŝƐƚŚĞďĞƐƚƐĞůůŝŶŐŵŽĚĞůĨŽƌDtĂƚƚŚĞĞŶĚŽĨϮϬϭϴ
ŝƐĂŶƟĐŝƉĂƚĞĚƚŽĞdžĐŝƚĞďƵLJĞƌƐĂŶĚďĞĂǁŽƌůĚǁŝĚĞŚŝƚ͘/ƚŚĂƐďĞĞŶ
ƚŽƵƚĞĚĂƐDt͛ƐŵŽƐƚŝŵƉŽƌƚĂŶƚĐĂƌŽĨƚŚĞĚĞĐĂĚĞ͘dŚĞƌĞĐĞŶƚůLJ
ƌĞůĞĂƐĞĚŶĞǁDtyϯĂŶĚƚŚĞƐŽŽŶͲƚŽͲďĞůĂƵŶĐŚĞĚŶĞǁDtyϱ
ĂƌĞĂůƐŽƉŽŝƐĞĚƚŽďĞďĞƐƚƐĞůůĞƌƐ͘/ŶƚŚĞƐƵƉĞƌͲůƵdžƵƌLJƐƉĂĐĞ͕ŶĞǁ
ŵŽĚĞůƐĨƌŽŵZŽůůƐͲZŽLJĐĞ͖ƚŚĞWŚĂŶƚŽŵĂŶĚƚŚĞƵůůŝŶĂŶ͕ĂŶĚƚŚĞ
ĮƌƐƚĞǀĞƌ^hsĨƌŽŵ>ĂŵďŽƌŐŚŝŶŝ͕ƚŚĞhƌƵƐ͕ĂƌĞĞdžƉĞĐƚĞĚƚŽĨƵƌƚŚĞƌ
ĚƌŝǀĞƐĂůĞƐ͘
ACKNOWLEDGEMENTS
KŶďĞŚĂůĨŽĨƚŚĞDĂŶĂŐĞŵĞŶƚƚĞĂŵ͕/ǁŽƵůĚůŝŬĞƚŽĞdžƉƌĞƐƐŽƵƌ
ŐƌĂƟƚƵĚĞƚŽƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂŶĚƐŚĂƌĞŚŽůĚĞƌƐĨŽƌLJŽƵƌ
ĐŽŶĮĚĞŶĐĞĂŶĚƐƵƉƉŽƌƚ͘/ǁŽƵůĚĂůƐŽůŝŬĞƚŽƌĞĐŽƌĚŵLJƐŝŶĐĞƌĞ
ƚŚĂŶŬƐĂŶĚĂƉƉƌĞĐŝĂƟŽŶƚŽŵLJĐŽůůĞĂŐƵĞƐŝŶƚŚĞŵĂŶĂŐĞŵĞŶƚƚĞĂŵ
ĂŶĚĨĞůůŽǁĐŽůůĞĂŐƵĞƐĂĐƌŽƐƐƚŚĞ'ƌŽƵƉǁŚŽŚĂǀĞǁŽƌŬĞĚƟƌĞůĞƐƐůLJ
ƚŚƌŽƵŐŚŽƵƚƚŚĞLJĞĂƌ͘/ĂŵƚƌƵůLJĂƉƉƌĞĐŝĂƟǀĞŽĨƚŚĞŝƌĚĞĚŝĐĂƟŽŶĂŶĚ
ĐŽŶƚƌŝďƵƟŽŶƐ͘
JEFFRI SALIM DAVIDSON
'ƌŽƵƉŚŝĞĨdžĞĐƵƟǀĞKĸĐĞƌ
page 27
 GROUP CHIEF
FINANCIAL OFFICER’S
REVIEW
DEAR VALUED
SHAREHOLDERS,

/ĂŵƉůĞĂƐĞĚƚŽƉƌĞƐĞŶƚĂŶŽǀĞƌǀŝĞǁŽĨ
^ŝŵĞĂƌďLJĞƌŚĂĚ͛ƐĮŶĂŶĐŝĂůƌĞƐƵůƚƐĨŽƌ
ƚŚĞLJĞĂƌĞŶĚĞĚϯϬ:ƵŶĞϮϬϭϴ͘

&zϮϬϭϴŵĂƌŬƐƚŚĞďĞŐŝŶŶŝŶŐŽĨĂŶĞǁĐŚĂƉƚĞƌ
ŝŶ^ŝŵĞĂƌďLJĞƌŚĂĚ͕ǁŝƚŚƚŚĞ'ƌŽƵƉĨŽĐƵƐĞĚ
ŽŶƚŚĞ/ŶĚƵƐƚƌŝĂůĂŶĚDŽƚŽƌƐďƵƐŝŶĞƐƐĞƐ
ĨŽůůŽǁŝŶŐƚŚĞƐƵĐĐĞƐƐĨƵůĐŽŵƉůĞƟŽŶŽĨƚŚĞ
ƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞ͘dŚĞ'ƌŽƵƉĂĐŚŝĞǀĞĚĂ
ĐŽŵŵĞŶĚĂďůĞEĞƚWƌŽĮƚŽĨZDϭ͘ϵďŝůůŝŽŶĨŽƌ
ƚŚĞLJĞĂƌ͘EĞƚWƌŽĮƚĨƌŽŵĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐ
ŝŶĐƌĞĂƐĞĚďLJϬ͘ϱйƚŽZDϲϭϴŵŝůůŝŽŶǁŚŝůĞ
EĞƚWƌŽĮƚĨƌŽŵĚŝƐĐŽŶƟŶƵĞĚŽƉĞƌĂƟŽŶƐ
ǁĂƐZDϭ͘ϯďŝůůŝŽŶĨŽƌƚŚĞĮǀĞŵŽŶƚŚƐƉƌŝŽƌ
ƚŽĚĞĐŽŶƐŽůŝĚĂƟŽŶŝŶEŽǀĞŵďĞƌϮϬϭϳ͘tĞ
ĂĐŚŝĞǀĞĚƵŶĚĞƌůLJŝŶŐŐƌŽǁƚŚŝŶŽƵƌůŽŶŐͲƚĞƌŵ
ŵĂƌŬĞƚƐŝŶƵƐƚƌĂůĂƐŝĂĂŶĚŚŝŶĂ͕ĚĞƐƉŝƚĞƚŚĞ
ƐŚŽƌƚͲƚĞƌŵĐŚĂůůĞŶŐĞƐŝŶ^ŽƵƚŚĞĂƐƚƐŝĂĚƵĞƚŽ
ĐŚĂŶŐŝŶŐŵĂƌŬĞƚĐŽŶĚŝƟŽŶƐ͘

KEY FINANCIAL PERFORMANCE

INDICATORS
dŚĞ'ƌŽƵƉ͛ƐŬĞLJĮŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞ
ŝŶĚŝĐĂƚŽƌƐĂƌĞZĞǀĞŶƵĞ͕WƌŽĮƚďĞĨŽƌĞ/ŶƚĞƌĞƐƚ
ĂŶĚdĂdž;W/dͿ͕EĞƚWƌŽĮƚ͕ZĞƚƵƌŶŽŶǀĞƌĂŐĞ
/ŶǀĞƐƚĞĚĂƉŝƚĂů;ZK/ͿĂŶĚZĞƚƵƌŶŽŶ
ǀĞƌĂŐĞ^ŚĂƌĞŚŽůĚĞƌƐ͛ƋƵŝƚLJ;ZKͿ͘dŚĞƐĞ
ŝŶĚŝĐĂƚŽƌƐĂƌĞƌĞŐƵůĂƌůLJƌĞǀŝĞǁĞĚďLJƚŚĞ
ŽĂƌĚĂŶĚƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚŝŶŵĂŶĂŐŝŶŐ
ƚŚĞďƵƐŝŶĞƐƐĂŶĚŝŶŵĞĂƐƵƌŝŶŐƚŚĞ'ƌŽƵƉ͛Ɛ

86% RM618 million

REVENUE GENERATED OUTSIDE
MALAYSIA
ϯϴйĨƌŽŵŚŝŶĂ͕ϯϬйĨƌŽŵ
ƵƐƚƌĂůĂƐŝĂĂŶĚϭϴйĨƌŽŵ^ŽƵƚŚĞĂƐƚ
ƐŝĂĞdžĐůƵĚŝŶŐDĂůĂLJƐŝĂ
NET PROFIT FROM CONTINUING
OPERATIONS FOR THE YEAR
EĞƚWƌŽĮƚĨƌŽŵĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐ
ŝŶĐƌĞĂƐĞĚďLJϬ͘ϱйĨƌŽŵƚŚĞƉƌĞǀŝŽƵƐ
ĮŶĂŶĐŝĂůLJĞĂƌ
ƉĞƌĨŽƌŵĂŶĐĞĂŐĂŝŶƐƚƚĂƌŐĞƚƐ͘&ŽůůŽǁŝŶŐƚŚĞ
ƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞ͕ƚŚŝƐLJĞĂƌ͛ƐƌĞƉŽƌƟŶŐǁŝůů
ĨŽĐƵƐŽŶƚŚĞƌĞƐƵůƚƐŽĨĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐ
ĂƐƚŚŝƐƌĞƉƌĞƐĞŶƚƐƚŚĞďƵƐŝŶĞƐƐĞƐŽĨƚŚĞ'ƌŽƵƉ
ŐŽŝŶŐĨŽƌǁĂƌĚ͘&ŽƌĞĂƐĞŽĨĐŽŵƉĂƌĂďŝůŝƚLJ͕ƚŚŝƐ
ƌĞǀŝĞǁǁŽƵůĚĨŽĐƵƐŽŶZĞǀĞŶƵĞ͕W/dĂŶĚ
ZK/͘

page 28 SIME DARBY BERHAD

REVENUE WZK&/d&KZ/EdZ^dEdyΈW/dΉ

/ŶĚƵƐƚƌŝĂů Motors >ŽŐŝƐƟĐƐ KƚŚĞƌƐ /ŶĚƵƐƚƌŝĂů Motors >ŽŐŝƐƟĐƐ KƚŚĞƌƐ

ZDŵŝůůŝŽŶ ZDŵŝůůŝŽŶ
ϯϱ͕ϬϬϬ 33,8
33
33,828
828
8 Ϯ͕ϬϬϬ
105
05
31,087 341 1,769
30,163 30,005
ϯϬ͕ϬϬϬ 29,452 ϱϱ
ϵϱ ϭϬϯ ϯϬϯ Ϯϱ
ϱϳ ϳϬ
ϮϱϬ Ϯϵϰ Ϯϵϰ
ϭ͕ϱϬϬ
Ϯϱ͕ϬϬϬ
ϮϬ͕ϯϰϭ ϲϯϱ 1,240
1,074
ϮϬ͕ϬϬϬ ϭϳ͕ϳϰϱ ϭϴ͕ϲϰϲ ϮϬ͕ϲϬϮ
ϭϵ͕ϭϱϱ ϭϯϳ
ϳϳ 74
ϭ͕ϬϬϬ 943
ϭϬϯ
ϭϱ͕ϬϬϬ 784
ϰϳϰ ϱϰϯ
ϵϭ
ϭϬ͕ϬϬϬ ϱϬϯ ϲϰ
ϱϬϬ ϭ͕Ϭϯϵ
ϭϬ͕ϵϲϮ ϵ͕ϵϰϲ ϭϬ͕ϭϮϳ ϭϯ͕Ϭϰϭ
ϭϮ͕Ϭϳϯ ϲϯϯ
ϱ͕ϬϬϬ ϱϱϮ
ϲϭϮ
ϯϰϭ

0 0 ;ϰͿ ;ϰͿ
(
(155)
)
&zϮϬϭϰΎ &zϮϬϭϱΎ &zϮϬϭϲ &zϮϬϭϳ FY2018 &zϮϬϭϰΎ &zϮϬϭϱΎ &zϮϬϭϲ &zϮϬϭϳ FY2018
Ύ ŶŽƚƌĞƐƚĂƚĞĚĨŽƌĂĚŽƉƟŽŶŽĨD&Z^&ƌĂŵĞǁŽƌŬĂŶĚD&Z^ϭϱ Ύ ŶŽƚƌĞƐƚĂƚĞĚĨŽƌĂĚŽƉƟŽŶŽĨD&Z^&ƌĂŵĞǁŽƌŬĂŶĚD&Z^ϭϱ

dŚĞ'ƌŽƵƉĂĐŚŝĞǀĞĚĂƚƵƌŶŽǀĞƌŽĨZDϯϯ͘ϴďŝůůŝŽŶŝŶ&zϮϬϭϴ͕ǁŚŝĐŚŝƐ
ĂŶŝŶĐƌĞĂƐĞŽĨϴ͘ϴйĨƌŽŵƚŚĞƉƌĞǀŝŽƵƐĮŶĂŶĐŝĂůLJĞĂƌ͘/ŶŽƵƌ/ŶĚƵƐƚƌŝĂů
ŝǀŝƐŝŽŶ͕ŝŶĐƌĞĂƐĞĚĚĞŵĂŶĚĨƵĞůůĞĚƌĞǀĞŶƵĞŐƌŽǁƚŚŽĨϮϴ͘ϴйƚŽ
ZDϭϯďŝůůŝŽŶ͕ǁŚŝůĞƌĞǀĞŶƵĞĨƌŽŵŽƵƌDŽƚŽƌƐŝǀŝƐŝŽŶĚĞĐƌĞĂƐĞĚŽŶůLJ
ƐůŝŐŚƚůLJ͕ďLJϭ͘ϯйƚŽZDϮϬ͘ϯďŝůůŝŽŶ͕ĚĞƐƉŝƚĞƚŚĞǁŝŶĚŝŶŐĚŽǁŶŽĨŽƵƌ
sŝĞƚŶĂŵŽƉĞƌĂƟŽŶƐ͘>ŽŐŝƐƟĐƐŝǀŝƐŝŽŶ͛ƐƌĞǀĞŶƵĞŝŶĐƌĞĂƐĞĚďLJϭϮ͘ϱй
ƚŽZDϯϰϭŵŝůůŝŽŶ͕ĂŝĚĞĚďLJŚŝŐŚĞƌƚŚƌŽƵŐŚƉƵƚĂƚtĞŝĨĂŶŐWŽƌƚĂŶĚ
ŚŝŐŚĞƌƌĞǀĞŶƵĞĨƌŽŵŽƵƌǁĂƚĞƌŽƉĞƌĂƟŽŶƐ͘
/ŶƚĞƌŵƐŽĨŐĞŽŐƌĂƉŚŝĐĂůďƌĞĂŬĚŽǁŶ͕ĂďŽƵƚϴϲйŽĨƚŚĞ'ƌŽƵƉ͛Ɛ
ƌĞǀĞŶƵĞǁĂƐŐĞŶĞƌĂƚĞĚĨƌŽŵŽƉĞƌĂƟŽŶƐŽƵƚƐŝĚĞDĂůĂLJƐŝĂ͕ǁŝƚŚϯϴй
ĨƌŽŵŚŝŶĂ*͕ϯϬйĨƌŽŵƵƐƚƌĂůĂƐŝĂнĂŶĚϭϴйĨƌŽŵ^ŽƵƚŚĞĂƐƚƐŝĂ
ĞdžĐůƵĚŝŶŐDĂůĂLJƐŝĂ͘dŚŝƐǁĂƐƐůŝŐŚƚůLJŚŝŐŚĞƌƚŚĂŶƚŚĞϴϱйƌĞǀĞŶƵĞ
ĐŽŶƚƌŝďƵƟŽŶĨƌŽŵĨŽƌĞŝŐŶŽƉĞƌĂƟŽŶƐŝŶƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌ͘
W/dĨŽƌ&zϮϬϭϴŝŶĐƌĞĂƐĞĚďLJϯϳ͘ϬйĨƌŽŵZDϳϴϰŵŝůůŝŽŶƚŽZDϭ͕Ϭϳϰ
ŵŝůůŝŽŶ͘džĐůƵĚŝŶŐŽŶĞͲŽīŝƚĞŵƐ͕ƚŚĞĐŽƌĞW/dĨŽƌƚŚĞ'ƌŽƵƉ͛Ɛ
ĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐŝŶĐƌĞĂƐĞĚďLJϮϵ͘ϰйLJĞĂƌͲŽŶͲLJĞĂƌ;zŽzͿĨƌŽŵ
ZDϵϰϵŵŝůůŝŽŶƚŽZDϭ͕ϮϮϴŵŝůůŝŽŶ͘/ƚĞŵƐĞdžĐůƵĚĞĚĨƌŽŵĐŽƌĞ
ƉƌŽĮƚŝŶĐůƵĚĞŐĂŝŶĨƌŽŵĚŝƐƉŽƐĂůŽĨƉƌŽƉĞƌƟĞƐ͕ŝŵƉĂŝƌŵĞŶƚƐ͕ƚŚĞ
ĚĞĐŽŶƐŽůŝĚĂƟŽŶŽĨzĂLJĂƐĂŶ^ŝŵĞĂƌďLJĂŶĚůŽƐƐĞƐĨƌŽŵƚŚĞ'ƌŽƵƉ͛Ɛ
ĚĞƉĂƌƚƵƌĞĨƌŽŵƚŚĞDtďƵƐŝŶĞƐƐŝŶsŝĞƚŶĂŵ͘
/ŶƚĞƌŵƐŽĨŐĞŽŐƌĂƉŚŝĐĂůƐĞŐŵĞŶƚ͕ĂƉƉƌŽdžŝŵĂƚĞůLJϵϭйŽĨƚŚĞ
'ƌŽƵƉ͛Ɛ&zϮϬϭϴW/dǁĂƐĚĞƌŝǀĞĚĨƌŽŵŽƉĞƌĂƟŽŶƐŽƵƚƐŝĚĞDĂůĂLJƐŝĂ
ĂƐĐŽŵƉĂƌĞĚƚŽϰϰйŝŶ&zϮϬϭϳ͘,ŽǁĞǀĞƌ͕ƚŚĞƐĞƉĞƌĐĞŶƚĂŐĞƐŚĂǀĞ
ďĞĞŶĚŝƐƚŽƌƚĞĚďLJƚŚĞƐŝŐŶŝĮĐĂŶƚŶƵŵďĞƌŽĨŽŶĞͲŽīŝƚĞŵƐŝŶďŽƚŚ
LJĞĂƌƐ͘ĂƐĞĚŽŶƚŚĞĐŽƌĞW/d͕ƚŚĞĐŽŶƚƌŝďƵƟŽŶĨƌŽŵŽǀĞƌƐĞĂƐ
ŽƉĞƌĂƟŽŶƐǁĂƐĂďŽƵƚϳϴй͕ĐŽŵƉĂƌĞĚƚŽϳϳйŝŶ&zϮϬϭϳ͘

Ύ ŚŝŶĂŝŶĐůƵĚĞƐŚŝŶĂ͕,ŽŶŐ<ŽŶŐ͕DĂĐĂƵĂŶĚdĂŝǁĂŶ ƉƉƌŽdžŝŵĂƚĞůLJϯϴйŽĨƚŚĞ'ƌŽƵƉ͛ƐĐŽƌĞƉƌŽĮƚǁĂƐĨƌŽŵŽƵƌŚŝŶĂ
н
 ƵƐƚƌĂůĂƐŝĂŝŶĐůƵĚĞƐƵƐƚƌĂůŝĂ͕EĞǁĂůĞĚŽŶŝĂ͕EĞǁĞĂůĂŶĚ͕WĂƉƵĂEĞǁ'ƵŝŶĞĂĂŶĚ
^ŽůŽŵŽŶ/ƐůĂŶĚƐ
ŽƉĞƌĂƟŽŶƐ͕ǁŚŝůĞϮϳйŝƐĨƌŽŵƵƐƚƌĂůĂƐŝĂĂŶĚϭϯйĨƌŽŵ^ŽƵƚŚĞĂƐƚ
ƐŝĂĞdžĐůƵĚŝŶŐDĂůĂLJƐŝĂ͘

Malaysia Malaysia

Southeast Asia 14% Southeast Asia

excluding Malaysia excluding Malaysia 22%
27%
China 30% China

Australasia Australasia
FY2018 18%
REVENUE BY FY2018
GEOGRAPHICAL CORE PBIT BY
LOCATION GEOGRAPHICAL
LOCATION 13%

38% 38%

ANNUAL REPORT 2018 page 29

 /ŶĚƵƐƚƌŝĂů
ZDŵŝůůŝŽŶ dŚĞ/ŶĚƵƐƚƌŝĂůŝǀŝƐŝŽŶƌĞĐŽƌĚĞĚĂƉƌŽĮƚŽĨZDϲϭϮŵŝůůŝŽŶŝŶ&zϮϬϭϴ͕ĂƐĐŽŵƉĂƌĞĚ
29% 15,400%
ϭϱ͕ϬϬϬ 800 :ƵŶϭϳ ƚŽĂůŽƐƐŽĨZDϰŵŝůůŝŽŶŝŶƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌ͘dŚĞƉƌŽĮƚĨŽƌ&zϮϬϭϴŝŶĐůƵĚĞƐĂŐĂŝŶ
:ƵŶϭϴ
ϭϮ͕ϬϬϬ ĨƌŽŵĚŝƐƉŽƐĂůŽĨƉƌŽƉĞƌƟĞƐĂŵŽƵŶƟŶŐƚŽZDϭϳϴŵŝůůŝŽŶ͘dŚĞůŽƐƐŝŶƚŚĞƉƌĞǀŝŽƵƐ
ϲϬϬ
ϵ͕ϬϬϬ
ĮŶĂŶĐŝĂůLJĞĂƌŝŶĐůƵĚĞƐĂŶŝŵƉĂŝƌŵĞŶƚŽĨƚŚĞƵĐLJƌƵƐĚŝƐƚƌŝďƵƟŽŶƌŝŐŚƚƐĂŶĚĂ

13,041
ϰϬϬ ƉƌŽǀŝƐŝŽŶĨŽƌŽŶĞƌŽƵƐĐŽŶƚƌĂĐƚƐĨŽƌƚŚĞůĞĂƐŝŶŐŽĨƵĐLJƌƵƐĞƋƵŝƉŵĞŶƚ͕ƚŽƚĂůůŝŶŐ
ϲ͕ϬϬϬ

612
ϭϬ͕ϭϮϳ
ZDϮϱϳŵŝůůŝŽŶ͘džĐůƵĚŝŶŐƚŚĞƐĞŝƚĞŵƐ͕ƉƌŽĮƚĨŽƌƚŚĞŝǀŝƐŝŽŶŝŶĐƌĞĂƐĞĚϳϮйĨƌŽŵ
ϯ͕ϬϬϬ 200
ZDϮϱϯŵŝůůŝŽŶŝŶ&zϮϬϭϳƚŽZDϰϯϰŵŝůůŝŽŶŝŶ&zϮϬϭϴ͕ƉƌŝŵĂƌŝůLJĚƵĞƚŽŚŝŐŚĞƌ
0 0 ĞƋƵŝƉŵĞŶƚĂŶĚƉĂƌƚƐƐĂůĞƐƚŽƚŚĞŵŝŶŝŶŐĂŶĚĐŽŶƐƚƌƵĐƟŽŶƐĞĐƚŽƌƐŝŶƵƐƚƌĂůŝĂ

;ϰͿ
Revenue PBIT ĂŶĚŚŝŶĂ͘

Motors
ZDŵŝůůŝŽŶ
1.3% 14% dŚĞDŽƚŽƌƐŝǀŝƐŝŽŶƌĞĐŽƌĚĞĚĂĚĞĐůŝŶĞŝŶƉƌŽĮƚŽĨϭϰ͘Ϯй͕ǁŚŝĐŚǁĂƐƉƌŝŵĂƌŝůLJ
Ϯϱ͕ϬϬϬ 800 :ƵŶϭϳ
:ƵŶϭϴ
ĂƩƌŝďƵƚĂďůĞƚŽůŽƐƐĞƐŽĨZDϭϵϵŵŝůůŝŽŶ;ZDϲϲŵŝůůŝŽŶŝŶ&zϮϬϭϳͿ͕ĨŽůůŽǁŝŶŐƚŚĞ
ϮϬ͕ϬϬϬ
ϲϬϬ
'ƌŽƵƉ͛ƐĞdžŝƚĨƌŽŵƚŚĞDtďƵƐŝŶĞƐƐŝŶsŝĞƚŶĂŵ͘dŚŝƐǁĂƐƉĂƌƚůLJŵŝƟŐĂƚĞĚďLJƚŚĞ
ϭϱ͕ϬϬϬ ŐĂŝŶĨƌŽŵůĂŶĚĐŽŵƉĞŶƐĂƟŽŶŝŶŚŝŶĂŽĨZDϰϭŵŝůůŝŽŶĂŶĚZDϵŵŝůůŝŽŶďƌĂŶĐŚ
20,341

ϰϬϬ ĐŽŵƉĞŶƐĂƟŽŶŝŶDĂůĂLJƐŝĂ͘dŚĞƉƌĞǀŝŽƵƐLJĞĂƌ͛ƐƌĞƐƵůƚƐĂůƐŽŝŶĐůƵĚĞĚZDϯϬŵŝůůŝŽŶ
ϲϯϯ

ϭϬ͕ϬϬϬ
543
ϮϬ͕ϲϬϮ

ŐĂŝŶŽŶĚŝƐƉŽƐĂůŽĨĂƉƌŽƉĞƌƚLJŝŶ,ŽŶŐ<ŽŶŐ͘džĐůƵĚŝŶŐƚŚĞƐĞŝƚĞŵƐ͕ƉƌŽĮƚŝŶĐƌĞĂƐĞĚ
200
ϱ͕ϬϬϬ
ďLJϯ͘ϰйĨƌŽŵZDϲϲϵŵŝůůŝŽŶƚŽZDϲϵϮŵŝůůŝŽŶ͕ĚƌŝǀĞŶďLJŚŝŐŚĞƌĐŽŶƚƌŝďƵƟŽŶĨƌŽŵ
0 0 ƚŚĞ,ŽŶŐ<ŽŶŐĂŶĚDĂĐĂƵŽƉĞƌĂƟŽŶƐ͕ĂŶĚŝŵƉƌŽǀĞŵĞŶƚƐŝŶŽƵƌdĂŝǁĂŶŽƉĞƌĂƟŽŶƐ͘
Revenue PBIT dŚĞDŽƚŽƌƐŝǀŝƐŝŽŶ͛ƐƌĞƐƵůƚƐǁĞƌĞĂůƐŽƐƵƉƉŽƌƚĞĚďLJŚŝŐŚĞƌƉƌŽĮƚƐŝŶƵƐƚƌĂůŝĂ͕
ĨŽůůŽǁŝŶŐƚŚĞĚŝǀĞƐƚŵĞŶƚŽĨŝƚƐůŽƐƐͲŵĂŬŝŶŐŽƉĞƌĂƟŽŶƐ͘

>ŽŐŝƐƟĐƐ
ZDŵŝůůŝŽŶ dŚĞ'ƌŽƵƉ͛Ɛ>ŽŐŝƐƟĐƐŝǀŝƐŝŽŶƉŽƐƚĞĚĂϭϱ͘ϲйŝŶĐƌĞĂƐĞŝŶƉƌŽĮƚ͕ŵĂŝŶůLJĚƵĞƚŽ
13% 16%
ϯϱϬ 80 :ƵŶϭϳ ŚŝŐŚĞƌƚŚƌŽƵŐŚƉƵƚĂƚtĞŝĨĂŶŐWŽƌƚĂŶĚŚŝŐŚĞƌƉƌŽĮƚĨƌŽŵtĞŝĨĂŶŐtĂƚĞƌ͘
ϳϬ :ƵŶϭϴ
ϯϬϬ
KŶϮϵ:ƵŶĞϮϬϭϴ͕ǁĞĂŶŶŽƵŶĐĞĚƚŚĞĚŝƐƉŽƐĂůŽĨƚŚĞ'ƌŽƵƉ͛ƐĞŶƟƌĞĞƋƵŝƚLJ
ϮϱϬ ϲϬ
ϱϬ ŝŶƚĞƌĞƐƚŝŶtĞŝĨĂŶŐtĂƚĞƌĨŽƌh^ϲϴŵŝůůŝŽŶ͘/ŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚD&Z^ϱƌĞůĂƟŶŐ
200
ƚŽŶŽŶͲĐƵƌƌĞŶƚĂƐƐĞƚƐŚĞůĚĨŽƌƐĂůĞĂŶĚĚŝƐĐŽŶƟŶƵĞĚŽƉĞƌĂƟŽŶƐ͕ƚŚĞŽƉĞƌĂƟŽŶƐŽĨ
341

ϰϬ
74

ϭϱϬ
ϯϬϯ

ϲϰ

ϯϬ tĞŝĨĂŶŐtĂƚĞƌŚĂƐďĞĞŶƌĞĐůĂƐƐŝĮĞĚƚŽĂƐƐĞƚƐŚĞůĚĨŽƌƐĂůĞ͕ĂŶĚƚŚĞĚĞƉƌĞĐŝĂƟŽŶ
100 20
ϱϬ 10
ĂŶĚĂŵŽƌƟƐĂƟŽŶŚĂƐĐĞĂƐĞĚƐŝŶĐĞƚŚĞƌĞĐůĂƐƐŝĮĐĂƟŽŶ͘dŚĞƚƌĂŶƐĂĐƟŽŶǁĂƐ
0 0 ĐŽŵƉůĞƚĞĚŝŶ^ĞƉƚĞŵďĞƌϮϬϭϴ͘
Revenue PBIT

Others
A
ZDŵŝůůŝŽŶ 58% dŚĞ'ƌŽƵƉƌĞĐŽƌĚĞĚŚŝŐŚĞƌƐŚĂƌĞŽĨƉƌŽĮƚĨƌŽŵƚŚĞZĂŵƐĂLJ^ŝŵĞĂƌďLJ,ĞĂůƚŚĐĂƌĞ
ϲϬ :ƵŶϭϳ
ũŽŝŶƚǀĞŶƚƵƌĞ͕ŵĂŝŶůLJĂƩƌŝďƵƚĂďůĞƚŽŚŝŐŚĞƌƉƌŽĮƚĨƌŽŵƚŚĞDĂůĂLJƐŝĂŶŽƉĞƌĂƟŽŶƐ
:ƵŶϭϴ
ϱϬ ĂŶĚĂĚĚŝƟŽŶĂůƚĂdžĂĚũƵƐƚŵĞŶƚƐƚĂŬĞŶƵƉŝŶ&zϮϬϭϴ͘
ϰϬ
57

ϯϬ ƐƉĂƌƚŽĨƚŚĞƌĞǀŝĞǁŽĨŽƵƌĂƐƐĞƚƐ͕ƚŚĞŝŶǀĞƐƚŵĞŶƚŝŶĂƐƚĞƌŶΘKƌŝĞŶƚĂůĞƌŚĂĚ
ϯϲ

20 ;ΘKͿ͕ǁŚŝĐŚŝƐŝŶǀŽůǀĞĚŝŶƚŚĞƉƌŽƉĞƌƚLJĚĞǀĞůŽƉŵĞŶƚĂŶĚŝŶǀĞƐƚŵĞŶƚďƵƐŝŶĞƐƐ͕
10
ŝƐŶŽǁĐŽŶƐŝĚĞƌĞĚĂŶŽŶͲĐŽƌĞĂƐƐĞƚ͕ĂŶĚŚĂƐďĞĞŶĞĂƌŵĂƌŬĞĚĨŽƌĚŝƐƉŽƐĂů͘^ŝŶĐĞ
0
ƚŚĞƌĞĐŽǀĞƌLJŽĨΘK͛ƐǀĂůƵĞǁŝůůďĞǀŝĂĂĚŝƐƉŽƐĂů͕ƚŚĞĐĂƌƌLJŝŶŐǀĂůƵĞŚĂƐďĞĞŶ
,ĞĂůƚŚĐĂƌĞW/d
ǁƌŝƩĞŶĚŽǁŶƚŽŝƚƐĨĂŝƌǀĂůƵĞŽĨZDϮϰϬŵŝůůŝŽŶĂƐĂƚϯϬ:ƵŶĞϮϬϭϴ͕ƌĞƐƵůƟŶŐŝŶĂŶ
ŝŵƉĂŝƌŵĞŶƚŽĨZDϭϬϯŵŝůůŝŽŶ͘

dŚĞĐĂƌƌLJŝŶŐǀĂůƵĞŽĨŽƵƌůĞŐĂĐLJŽŝůΘŐĂƐďƵƐŝŶĞƐƐǁĂƐĂůƐŽƌĞǀŝĞǁĞĚĂŐĂŝŶŝŶ
&zϮϬϭϴ͕ĂŶĚƚŚĞůŽŶŐŽƵƚƐƚĂŶĚŝŶŐĂĐĐƌƵĞĚďŝůůŝŶŐƐƌĞůĂƟŶŐƚŽƚŚĞKE'WƌŽĐĞƐƐ
ƉƌŽũĞĐƚŽĨZDϮϴŵŝůůŝŽŶŚĂǀĞďĞĞŶĨƵůůLJŝŵƉĂŝƌĞĚ͘

ƐƉĂƌƚŽĨƚŚĞƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞ͕ƚŚĞŵĞŵďĞƌƐŚŝƉŽĨzĂLJĂƐĂŶ^ŝŵĞĂƌďLJ;z^Ϳ
ŚĂƐďĞĞŶĐŚĂŶŐĞĚ͕ŵĂŬŝŶŐĞĂĐŚŽĨƚŚĞƚŚƌĞĞƉƵƌĞͲƉůĂLJƐŵĞŵďĞƌƐŽĨz^͘dŚĞ
ĐŚĂŶŐĞŝŶŵĞŵďĞƌƐŚŝƉƌĞƐƵůƚĞĚŝŶz^͕ǁŚŝĐŚŚĂĚďĞĞŶƉƌĞǀŝŽƵƐůLJĐŽŶƐŽůŝĚĂƚĞĚĂƐ
ĂƐƵďƐŝĚŝĂƌLJ͕ďĞŝŶŐƌĞĐůĂƐƐŝĮĞĚƚŽĂŶĂƐƐŽĐŝĂƚĞĐŽŵƉĂŶLJ͘dŚĞĚĞĐŽŶƐŽůŝĚĂƟŽŶŽĨz^
ƌĞƐƵůƚĞĚŝŶĂůŽƐƐŽŶĚĞĐŽŶƐŽůŝĚĂƟŽŶŽĨZDϲϭŵŝůůŝŽŶ͘'ŽŝŶŐĨŽƌǁĂƌĚ͕ĚŽŶĂƟŽŶƐƚŽ
z^ǁŽƵůĚďĞƌĞĐŽƌĚĞĚĂƐĞdžƉĞŶƐĞƐďLJƚŚĞ'ƌŽƵƉ͘

page 30 SIME DARBY BERHAD

FINANCE INCOME
&ŝŶĂŶĐĞŝŶĐŽŵĞƐĂǁĂƐŝŐŶŝĮĐĂŶƚ
ƌĞĚƵĐƟŽŶĨƌŽŵZDϱϭϮŵŝůůŝŽŶŝŶ
&zϮϬϭϳƚŽZDϭϬϰŵŝůůŝŽŶŝŶ&zϮϬϭϴ͕
ŵĂŝŶůLJĚƵĞƚŽƚŚĞƌĞĚƵĐƟŽŶŝŶ
ĮŶĂŶĐĞŝŶĐŽŵĞĨƌŽŵ^ŝŵĞĂƌďLJ
WůĂŶƚĂƟŽŶĞƌŚĂĚ;^WůĂŶƚĂƟŽŶͿ
ĂŶĚ^ŝŵĞĂƌďLJWƌŽƉĞƌƚLJĞƌŚĂĚ
;^WƌŽƉĞƌƚLJͿĨƌŽŵZDϰϲϳŵŝůůŝŽŶƚŽ
ZDϰϴŵŝůůŝŽŶ͘tŝƚŚƚŚĞƐĞƩůĞŵĞŶƚŽĨ
ƚŚĞŝŶƚĞƌͲĐŽŵƉĂŶLJůŽĂŶƐŽǁĞĚďLJ^
WůĂŶƚĂƟŽŶĂŶĚ^WƌŽƉĞƌƚLJĂƐƉĂƌƚŽĨ
ƚŚĞƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞ͕ƚŚĞƌĞǁŽƵůĚ
ďĞŶŽƐƵĐŚŝŶĐŽŵĞŐŽŝŶŐĨŽƌǁĂƌĚ͘
NET PROFIT AND ROE
dŚĞ'ƌŽƵƉ͛ƐŶĞƚƉƌŽĮƚĨƌŽŵĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐŝŶĐƌĞĂƐĞĚϬ͘ϱйĨƌŽŵZDϲϭϱŵŝůůŝŽŶŝŶ
&zϮϬϭϳƚŽZDϲϭϴŵŝůůŝŽŶŝŶ&zϮϬϭϴ͘dŚŝƐƌĞƐƵůƚĞĚŝŶĂƌĞƚƵƌŶŽŶƐŚĂƌĞŚŽůĚĞƌƐ͛ĞƋƵŝƚLJ*;ďĂƐĞĚ
ŽŶƐŚĂƌĞŚŽůĚĞƌƐ͛ĞƋƵŝƚLJĂƐĂƚϯϬ:ƵŶĞϮϬϭϴŽĨZDϭϰ͘ϰďŝůůŝŽŶͿŽĨϰ͘ϯй͘tĞĂƌĞǁŽƌŬŝŶŐƚŽǁĂƌĚƐ
ŝŶĐƌĞĂƐŝŶŐƚŚŝƐƌĞƚƵƌŶƚŽŽǀĞƌϴйŝŶƚŚĞŵĞĚŝƵŵƚĞƌŵ͘
BALANCE SHEET
dŚĞ'ƌŽƵƉ͛ƐďĂůĂŶĐĞƐŚĞĞƚƵŶĚĞƌǁĞŶƚĂƐŝŐŶŝĮĐĂŶƚĐŚĂŶŐĞĨŽůůŽǁŝŶŐƚŚĞƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞ͘
dŚĞĐĂƌƌLJŝŶŐǀĂůƵĞŽĨƚŚĞŶĞƚĂƐƐĞƚƐŽĨ^WůĂŶƚĂƟŽŶĂŶĚ^WƌŽƉĞƌƚLJǁĞƌĞĚĞĐŽŶƐŽůŝĚĂƚĞĚ͕
ǁŚŝĐŚƌĞƐƵůƚĞĚŝŶĂZDϮϮ͘ϲďŝůůŝŽŶ;ŽƌŽǀĞƌϲϬйͿƌĞĚƵĐƟŽŶŝŶƚŚĞ'ƌŽƵƉ͛ƐƐŚĂƌĞŚŽůĚĞƌƐ͛ĞƋƵŝƚLJ͘
/ŶĐůƵĚĞĚŝŶƚŚĞŶĞƚĂƐƐĞƚƐĚĞĐŽŶƐŽůŝĚĂƚĞĚǁĂƐďŽƌƌŽǁŝŶŐƐŽĨZDϵ͘ϳďŝůůŝŽŶĂŶĚZDϮ͘ϮďŝůůŝŽŶŝŶ
ƉĞƌƉĞƚƵĂůƐƵŬƵŬ͘
ZDŵŝůůŝŽŶ FY2017 FY2018

FINANCE COST EŽŶƵƌƌĞŶƚƐƐĞƚƐ ϭϬ͕ϴϱϯ ϭϬ͕ϰϭϮ

dŚĞƌĞĚƵĐƟŽŶŝŶĮŶĂŶĐĞĐŽƐƚƐǁĂƐ KƚŚĞƌƐƐĞƚƐĞdžĐůƵĚŝŶŐĂŶŬΘĂƐŚďĂůĂŶĐĞƐ ϭϮ͕Ϯϴϲ ϭϮ͕ϳϴϵ
ŵĂŝŶůLJĚƵĞƚŽƚŚĞƌĞƉƵƌĐŚĂƐĞĂŶĚ ĂŶŬΘĂƐŚďĂůĂŶĐĞƐ Ϯ͕ϬϳϮ ϭ͕ϲϳϮ
ŶŽǀĂƟŽŶŽĨƚŚĞŵƵůƟͲĐƵƌƌĞŶĐLJƐƵŬƵŬ
ŝƐĐŽŶƟŶƵĞĚŽƉĞƌĂƟŽŶƐ ϰϮ͕ϰϲϵ Ͳ
ŽĨh^ϴϬϬŵŝůůŝŽŶŝŶDĂLJϮϬϭϳ͕ĂŶĚ
ƚŚĞĞĂƌůLJƌĞĚĞŵƉƟŽŶŽĨƚŚĞZDϳϬϬ dŽƚĂůƐƐĞƚƐ 67,680 24,873
ŵŝůůŝŽŶĨƌŽŵƚŚĞ/ƐůĂŵŝĐDĞĚŝƵŵ ŽƌƌŽǁŝŶŐƐ ϯ͕ϮϬϱ Ϯ͕ϴϴϵ
dĞƌŵEŽƚĞ;ŝDdEͿ͘dŚĞƌĞƐƚƌƵĐƚƵƌŝŶŐ KƚŚĞƌ>ŝĂďŝůŝƟĞƐ ϲ͕ϲϯϲ ϳ͕ϮϮϱ
ŽĨƚŚĞďŽƌƌŽǁŝŶŐƐǁĂƐƉĂƌƚŽĨƚŚĞ ŝƐĐŽŶƟŶƵĞĚŽƉĞƌĂƟŽŶƐ ϭϳ͕ϮϵϬ Ͳ
ƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞ͘dŚĞtĞŝŐŚƚĞĚ
dŽƚĂů>ŝĂďŝůŝƟĞƐ 27,131 10,114
ǀĞƌĂŐĞŽƐƚŽĨďŽƌƌŽǁŝŶŐƐĨŽƌ
ĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐƌĞŵĂŝŶĞĚ ^ŚĂƌĞĂƉŝƚĂů ϵ͕Ϯϵϵ ϵ͕Ϯϵϵ
Ăƚϯ͘ϳй͘ ZĞƐĞƌǀĞƐ Ϯϴ͕Ϭϰϰ ϱ͕Ϭϳϭ
^ŚĂƌĞŚŽůĚĞƌƐ͛ƋƵŝƚLJ 37,343 14,370
TAXATION
EŽŶŽŶƚƌŽůůŝŶŐ/ŶƚĞƌĞƐƚƐĂŶĚWĞƌƉĞƚƵĂů^ƵŬƵŬ ϯ͕ϮϬϲ ϯϴϵ
&ŽůůŽǁŝŶŐĂƌĞǀŝĞǁŽĨƚŚĞĐĂƌƌLJŝŶŐ
dŽƚĂůƋƵŝƚLJ 40,549 14,759
ǀĂůƵĞŽĨƚŚĞůĞŐĂĐLJŽŝůΘŐĂƐďƵƐŝŶĞƐƐ͕
ĂƉƌŽǀŝƐŝŽŶŽĨZDϳϭŵŝůůŝŽŶǁĂƐ dŽƚĂůƋƵŝƚLJĂŶĚ>ŝĂďŝůŝƟĞƐ 67,680 24,873
ŵĂĚĞĨŽƌƚŚĞŽƵƚƐƚĂŶĚŝŶŐ/ŶĚŝĂ
tĞĞŶĚĞĚ&zϮϬϭϴǁŝƚŚĂƐƚƌŽŶŐĞƌďĂůĂŶĐĞƐŚĞĞƚ͕ǁŚŝĐŚƐŚŽǁƐĂůŽǁĞƌĚĞďƚƚŽĞƋƵŝƚLJƌĂƟŽŽĨϮϬй
ǁŝƚŚŚŽůĚŝŶŐƚĂdžƌĞĐŽǀĞƌĂďůĞƌĞůĂƚĞĚ
ĐŽŵƉĂƌĞĚƚŽϯϮйŝŶ&zϮϬϭϳ͘dŚŝƐŐŝǀĞƐƚŚĞ'ƌŽƵƉƐƵĸĐŝĞŶƚĚĞďƚŚĞĂĚƌŽŽŵƚŽĨƵŶĚĂŶLJĨƵƚƵƌĞ
ƚŽKE'ƉƌŽũĞĐƚƐ͘dŚĞĐĂƌƌLJŝŶŐ
ŐƌŽǁƚŚƉůĂŶƐ͘&ŽƌĨƵƌƚŚĞƌŝŶĨŽƌŵĂƟŽŶ͕ƐĞĞƉĂŐĞϭϮϴ͘
ǀĂůƵĞǁĂƐZDϲϯŵŝůůŝŽŶĂƐĂƚ
ϯϬ:ƵŶĞϮϬϭϴ͘dŚĞ'ƌŽƵƉ͛ƐĞīĞĐƟǀĞ
INVESTED CAPITAL AND ROAIC
ƚĂdžƌĂƚĞ͕ĞdžĐůƵĚŝŶŐƐŚĂƌĞŽĨĂƐƐŽĐŝĂƚĞ
dŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞŝǀŝƐŝŽŶƐǁĞƌĞĂůƐŽŵĞĂƐƵƌĞĚŝŶƚĞƌŵƐŽĨƌĞƚƵƌŶŽŶĂǀĞƌĂŐĞŝŶǀĞƐƚĞĚĐĂƉŝƚĂů͘
ĂŶĚũŽŝŶƚǀĞŶƚƵƌĞƌĞƐƵůƚƐ͕ǁĂƐϯϱй
/ŶǀĞƐƚĞĚĐĂƉŝƚĂůŝƐĂŵĞĂƐƵƌĞŽĨĐĂƉŝƚĂůĞŵƉůŽLJĞĚŝŶƚŚĞƌĞƐƉĞĐƟǀĞďƵƐŝŶĞƐƐĞƐ͘
ĂŐĂŝŶƐƚĂŶĂƉƉůŝĐĂďůĞƚĂdžƌĂƚĞŽĨϮϱй͘
dŚŝƐǁĂƐŵĂŝŶůLJĚƵĞƚŽƚŚĞƉƌŽǀŝƐŝŽŶ
ROAIC (%) /ŶǀĞƐƚĞĚĂƉŝƚĂů;ZDŵͿ
ĨŽƌǁŝƚŚŚŽůĚŝŶŐƚĂdž͕ŶŽŶͲĚĞĚƵĐƟďůĞ
ĞdžƉĞŶƐĞƐĂŶĚĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐŶŽƚ FY2017 FY2018 FY2017 FY2018
ƌĞĐŽŐŶŝƐĞĚĨŽƌĐĞƌƚĂŝŶůŽƐƐͲŵĂŬŝŶŐ
/ŶĚƵƐƚƌŝĂů ;Ϭ͘ϭͿ ϳ͘ϴ ϴ͕Ϭϴϵ ϳ͕ϳϬϬ
ƐƵďƐŝĚŝĂƌŝĞƐ͘
Motors ϭϬ͘ϵ ϵ͘ϯ ϱ͕ϴϮϲ ϱ͕ϴϵϲ
>ŽŐŝƐƟĐƐ Ϯ͘ϵ ϯ͘Ϯ Ϯ͕Ϯϵϰ Ϯ͕ϯϯϰ
,ĞĂůƚŚĐĂƌĞ ϱ͘ϰ ϴ͘ϭ ϲϴϮ ϳϯϬ
KƚŚĞƌƐ Ͳ Ͳ ϭ͕ϯϬϲ ϳϭϴ
SDB 4.4 6.0 18,197 17,378

EŽƚĞ͗
*
 ŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐŽŶůLJ

ANNUAL REPORT 2018

EEh>ZWKZdϮϬϭϴ page 31
 CASH FLOW AND BORROWINGS

ZDŵŝůůŝŽŶ FY2017 FY2018

KƉĞƌĂƟŶŐĐĂƐŚŇŽǁ ϭ͕ϱϯϵ ϲϳϳ

/ŶƚĞƌĞƐƚƌĞĐĞŝǀĞĚ ϱϭϮ ϴϳ
ĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞĂŶĚŝŶǀĞƐƚŵĞŶƚƐ ;ϲϵϲͿ ;ϱϰϵͿ
WƌŽĐĞĞĚƐĨƌŽŵĚŝƐƉŽƐĂůƐ ϱϬϬ ϰϱϭ
KƚŚĞƌŝŶǀĞƐƟŶŐĐĂƐŚŇŽǁƐ ϱϬ ;ϭϬϴͿ
&ŝŶĂŶĐĞĐŽƐƚƐƉĂŝĚ ;ϯϳϭͿ ;ϭϯϭͿ
&ƌĞĞĐĂƐŚŇŽǁ 1,534 427

dŚĞ'ƌŽƵƉ͛ƐĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐ͛ŽƉĞƌĂƟŶŐĐĂƐŚŇŽǁƐĚĞĐůŝŶĞĚ
ĨƌŽŵZDϭ͕ϱϯϵŵŝůůŝŽŶŝŶ&zϮϬϭϳƚŽZDϲϳϳŵŝůůŝŽŶŝŶ&zϮϬϭϴ͘dŚĞ
/ŶĚƵƐƚƌŝĂůŝǀŝƐŝŽŶ͛ƐŝŶĐƌĞĂƐĞŝŶƐĂůĞƐƌĞƐƵůƚĞĚŝŶŚŝŐŚĞƌƌĞĐĞŝǀĂďůĞƐ
ĂŶĚŝŶǀĞŶƚŽƌŝĞƐ͕ǁŚŝĐŚůĞĚƚŽŚŝŐŚĞƌǁŽƌŬŝŶŐĐĂƉŝƚĂůƌĞƋƵŝƌĞŵĞŶƚƐ͘
dŚŝƐŝƐŝŶĐŽŶƚƌĂƐƚǁŝƚŚ&zϮϬϭϳ͕ǁŚĞŶƚŚĞƌĞĚƵĐƟŽŶŝŶƌĞǀĞŶƵĞ
ĂŶĚĞīŽƌƚƐƚŽƌĞĚƵĐĞŝŶǀĞŶƚŽƌŝĞƐƌĞƐƵůƚĞĚŝŶĂƉŽƐŝƟǀĞĐŚĂŶŐĞŝŶ
ǁŽƌŬŝŶŐĐĂƉŝƚĂů͘
dŚĞƌĞǁĂƐĂƐŝŐŶŝĮĐĂŶƚƌĞĚƵĐƟŽŶŝŶŝŶǀĞƐƟŶŐĐĂƐŚŝŶŇŽǁĨƌŽŵ
ĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐĨƌŽŵZDϭ͕ϵϭϰŵŝůůŝŽŶƚŽZDϲϭϲŵŝůůŝŽŶĚƵĞ
ƚŽůŽǁĞƌƌĞƉĂLJŵĞŶƚƐĨƌŽŵĚŝƐĐŽŶƟŶƵĞĚŽƉĞƌĂƟŽŶƐ;ZDϳϯϱŵŝůůŝŽŶ
ŝŶ&zϮϬϭϴǀĞƌƐƵƐZDϭ͕ϱϰϴŵŝůůŝŽŶŝŶ&zϮϬϭϳͿĂŶĚůŽǁĞƌŝŶƚĞƌĞƐƚ
ŝŶĐŽŵĞĨƌŽŵĚŝƐĐŽŶƟŶƵĞĚŽƉĞƌĂƟŽŶƐĨƌŽŵZDϰϲϳŵŝůůŝŽŶƚŽZDϰϴ
ŵŝůůŝŽŶŝŶ&zϮϬϭϴ͘džĐůƵĚŝŶŐƚŚĞƐĞŝƚĞŵƐǁŚŝĐŚǁŽƵůĚŶŽƚƌĞĐƵƌ
ŝŶĨƵƚƵƌĞLJĞĂƌƐ͕ƚŚĞůĞǀĞůŽĨƐƉĞŶĚŝŶŐŽŶĐĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞĂŶĚ
ƉƌŽĐĞĞĚƐĨƌŽŵĚŝƐƉŽƐĂůƐǁĞƌĞŐĞŶĞƌĂůůLJĐŽŵƉĂƌĂďůĞŝŶďŽƚŚLJĞĂƌƐ͘
&ŝŶĂŶĐĞĐŽƐƚƐƉĂŝĚǁĂƐĂůƐŽůŽǁĞƌĂƚZDϭϯϭŵŝůůŝŽŶĂŐĂŝŶƐƚ
ZDϯϳϭŵŝůůŝŽŶŝŶƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌ͕ŵĂŝŶůLJĚƵĞƚŽƚŚĞůŽǁĞƌ
ĮŶĂŶĐĞĐŽƐƚƐĂƐĞdžƉůĂŝŶĞĚŽŶƉĂŐĞϯϭ͘
dŚĞ'ƌŽƵƉ͛ƐĐĂƐŚďĂůĂŶĐĞƌĞĚƵĐĞĚĨƌŽŵZDϮ͕ϬϳϮŵŝůůŝŽŶŝŶ&zϮϬϭϳ
ƚŽZDϭ͕ϲϳϮŵŝůůŝŽŶŝŶ&zϮϬϭϴ͘
ŽƌƌŽǁŝŶŐƐŽĨĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐƌĞĚƵĐĞĚĨƌŽŵZDϯ͕ϮϬϱ
ŵŝůůŝŽŶƚŽZDϮ͕ϴϴϵŵŝůůŝŽŶ͕ŵĂŝŶůLJĚƵĞƚŽŶĞƚƌĞƉĂLJŵĞŶƚŽĨZDϭϰϲ
ŵŝůůŝŽŶĂŶĚƚƌĂŶƐůĂƟŽŶĚŝīĞƌĞŶĐĞƐĂƐĂƌĞƐƵůƚŽĨƚŚĞƐƚƌŽŶŐĞƌ
DĂůĂLJƐŝĂŶZŝŶŐŐŝƚĂŐĂŝŶƐƚǀĂƌŝŽƵƐĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐĂƐĂƚϯϬ:ƵŶĞ
ϮϬϭϴ͕ŝŶĐŽŵƉĂƌŝƐŽŶǁŝƚŚƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌ͘EĞƚďŽƌƌŽǁŝŶŐƐƌĞƉĂŝĚ
ŝŶĐůƵĚĞƚŚĞĞĂƌůLJƌĞĚĞŵƉƟŽŶŽĨƚŚĞ/ƐůĂŵŝĐDĞĚŝƵŵdĞƌŵEŽƚĞ
;ŝDdEͿŽƵƚƐƚĂŶĚŝŶŐŽĨZDϳϬϬŵŝůůŝŽŶŝŶƵŐƵƐƚϮϬϭϳ͘dŚĞŝDdE
ƉƌŽŐƌĂŵŵĞǁĂƐŶŽǀĂƚĞĚƚŽ^WƌŽƉĞƌƚLJĂƐƉĂƌƚŽĨƚŚĞƉƵƌĞͲƉůĂLJ
ĚĞďƚĂůůŽĐĂƟŽŶĞdžĞƌĐŝƐĞ͘
dŚĞƚǁŽŝŶƚĞƌŝŵĚŝǀŝĚĞŶĚƐǁŽƵůĚŐŝǀĞĂƚŽƚĂůƉĂLJŽƵƚŽĨϲϲй͕
ĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĚŝǀŝĚĞŶĚƉĂLJŽƵƚŝŶƌĞĐĞŶƚLJĞĂƌƐŽĨĂďŽƵƚ
ϲϬйͲϳϬй͘dŚĞƐƉĞĐŝĂůĚŝǀŝĚĞŶĚŽĨϮƐĞŶƉĞƌƐŚĂƌĞǁĂƐĚĞĐůĂƌĞĚĂƐ
ĂƌĞǁĂƌĚƚŽƐŚĂƌĞŚŽůĚĞƌƐƵƉŽŶƚŚĞƐƵĐĐĞƐƐĨƵůĐŽŵƉůĞƟŽŶŽĨƚŚĞ
ƉƵƌĞͲƉůĂLJĞdžĞƌĐŝƐĞ͘
OUTLOOK
KŶŐŽŝŶŐƚƌĂĚĞƚĞŶƐŝŽŶƐďĞƚǁĞĞŶƚŚĞǁŽƌůĚ͛ƐŵĂũŽƌĞĐŽŶŽŵŝĞƐĂŶĚ
ƚŚĞĞdžƉĞĐƚĂƟŽŶŽĨĨƵƌƚŚĞƌŝŶƚĞƌĞƐƚƌĂƚĞŚŝŬĞƐĐĂƵƐĞĚǀŽůĂƟůŝƚLJŝŶƚŚĞ
ĞƋƵŝƚLJĂŶĚĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞŵĂƌŬĞƚƐ͕ĂŶĚŝŶĐƌĞĂƐĞĚƵŶĐĞƌƚĂŝŶƚLJ
ƐƵƌƌŽƵŶĚŝŶŐƚŚĞŐƌŽǁƚŚƉƌŽƐƉĞĐƚƐŽĨƚŚĞŐůŽďĂůĞĐŽŶŽŵLJ͘ĞƐƉŝƚĞ
ƚŚŝƐ͕ĞĐŽŶŽŵŝĐŐƌŽǁƚŚŝƐĞdžƉĞĐƚĞĚƚŽƌĞŵĂŝŶƐƚƌŽŶŐŝŶƚŚĞƐŝĂŶ
ĞĐŽŶŽŵŝĞƐŝŶǁŚŝĐŚǁĞŽƉĞƌĂƚĞ͘
tĞĂůƐŽĞdžƉĞĐƚƚŚĞ/ŶĚƵƐƚƌŝĂůŝǀŝƐŝŽŶƚŽĐŽŶƟŶƵĞƚŽƉĞƌĨŽƌŵ
ƐƚƌŽŶŐůLJŝŶƵƐƚƌĂůŝĂĂŶĚŚŝŶĂ͕ĂŶĚĨŽƌŽƉĞƌĂƟŽŶĂůĞdžĐĞůůĞŶĐĞ
ŝŶŝƟĂƟǀĞƐƚŽŬĞĞƉŝŵƉƌŽǀŝŶŐŵĂƌŐŝŶƐŝŶƚŚĞLJĞĂƌƐĂŚĞĂĚ͘
dŚĞDŽƚŽƌƐŝǀŝƐŝŽŶŝƐĞdžƉĞĐƚĞĚƚŽĨĞĞůƚŚĞŝŵƉĂĐƚŽĨƐƚƌŽŶŐ
ĐŽŵƉĞƟƟŽŶĂŶĚĐĂƵƟŽƵƐĐŽŶƐƵŵĞƌƐĞŶƟŵĞŶƚĚƵĞƚŽƚŚĞŽŶŐŽŝŶŐ
h^ͲŚŝŶĂƚƌĂĚĞǁĂƌ͘ĞƐƉŝƚĞƚŚĞŝǀŝƐŝŽŶ͛ƐŚĞĚŐŝŶŐĂĐƟǀŝƟĞƐ͕
ŵĂƌŐŝŶƐĂƌĞƐƵƐĐĞƉƟďůĞƚŽŇƵĐƚƵĂƟŽŶŝŶĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞƌĂƚĞƐ
ĚƵĞƚŽĐŽŵƉĞƟƟǀĞƉƌĞƐƐƵƌĞƐ͘ŽŶƟŶƵŽƵƐŝŵƉƌŽǀĞŵĞŶƚƚŚƌŽƵŐŚ
ŽƉĞƌĂƟŽŶĂůĞdžĐĞůůĞŶĐĞŝŶŝƟĂƟǀĞƐƐŚŽƵůĚŵŝƟŐĂƚĞĂŶLJĂĚǀĞƌƐĞ
ĞīĞĐƚƐ͘
WŽƌƚŽƉĞƌĂƟŽŶƐǁŝƚŚŝŶŽƵƌ>ŽŐŝƐƟĐƐŝǀŝƐŝŽŶǁŝůůĐŽŶƟŶƵĞƚŽĨĂĐĞ
ĐŽŵƉĞƟƟŽŶĨƌŽŵŽƚŚĞƌƉŽƌƚƐ͕ǁŚŝůĞĂǁĞĂŬĞƌŚŝŶĞƐĞZĞŶŵŝŶďŝ
ŚĂƐƚŚĞƉŽƚĞŶƟĂůƚŽĂīĞĐƚƉƌŽĮƚĂďŝůŝƚLJ͘
FY2019 PRIORITIES
/Ŷ&zϮϬϭϵĂŶĚďĞLJŽŶĚ͕ƚŚĞĮŶĂŶĐĞĨƵŶĐƟŽŶǁŽƵůĚďĞĨŽĐƵƐŝŶŐŽŶ
ŝŵƉƌŽǀŝŶŐŽƵƌĐĂƉŝƚĂůĂŶĚĨƵŶĚŝŶŐƐƚƌƵĐƚƵƌĞŝŶƚŚĞ'ƌŽƵƉ͘

ĚĚŝƟŽŶĂůŝŶĨŽƌŵĂƟŽŶŝƐƉƌŽǀŝĚĞĚŝŶŽƵƌĂƐŚ&ůŽǁ^ƚĂƚĞŵĞŶƚŽŶ &ŽƌĂĚĞĞƉĞƌƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨ^͛Ɛ&zϮϬϭϴĮŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞ͕
ƉĂŐĞƐϭϯϲƚŽϭϯϴ͘ ƉůĞĂƐĞƐĞĞŽƵƌĐŽŵƉƌĞŚĞŶƐŝǀĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ͕ǁŚŝĐŚƐƚĂƌƚŽŶ
ƉĂŐĞϭϭϭ͘
DIVIDENDS
dŚĞ'ƌŽƵƉ͛ƐĚŝǀŝĚĞŶĚƉŽůŝĐLJŝƐƚŽĚŝƐƚƌŝďƵƚĞĂĚŝǀŝĚĞŶĚŽĨŶŽƚůĞƐƐ
ƚŚĂŶϱϬйŽĨŶĞƚĞĂƌŶŝŶŐƐĞĂĐŚĮŶĂŶĐŝĂůLJĞĂƌ͘&Žƌ&zϮϬϭϴ͕ƚŚĞ MUSTAMIR MOHAMAD
'ƌŽƵƉĚĞĐůĂƌĞĚĂƚŽƚĂůĚŝǀŝĚĞŶĚƉĂLJŽƵƚŽĨϴϴй͕ĐŽŶƐŝƐƟŶŐŽĨƚŚĞ 'ƌŽƵƉŚŝĞĨ&ŝŶĂŶĐŝĂůKĸĐĞƌ
ϭƐƚŝŶƚĞƌŝŵĚŝǀŝĚĞŶĚŽĨϮƐĞŶƉĞƌƐŚĂƌĞ;ZDϭϯϲŵŝůůŝŽŶͿƉĂŝĚŝŶDĂLJ
ϮϬϭϴ͕ĂƐĞĐŽŶĚŝŶƚĞƌŝŵĚŝǀŝĚĞŶĚŽĨϰƐĞŶƉĞƌƐŚĂƌĞ;ZDϮϳϮŵŝůůŝŽŶͿ
ƉĂLJĂďůĞŝŶKĐƚŽďĞƌϮϬϭϴĂŶĚĂƐƉĞĐŝĂůĚŝǀŝĚĞŶĚŽĨϮƐĞŶƉĞƌƐŚĂƌĞ
;ZDϭϯϲŵŝůůŝŽŶͿĂůƐŽƉĂLJĂďůĞŝŶKĐƚŽďĞƌϮϬϭϴ͘

page 32 SIME DARBY BERHAD

VALUE DISTRIBUTION
dŚĞǀĂůƵĞƚŚĂƚ^ŝŵĞĂƌďLJĞƌŚĂĚĐƌĞĂƚĞƐĨŽƌŝƚƐƐƚĂŬĞŚŽůĚĞƌƐĐĂŶĞŝƚŚĞƌďĞŝŶƚŚĞĨŽƌŵŽĨĮŶĂŶĐŝĂůƌĞƚƵƌŶƐŽƌŝŶŶŽŶͲĮŶĂŶĐŝĂůŽƌŝŶƚĂŶŐŝďůĞ
ĨŽƌŵƐ͘dŚĞ^ƚĂƚĞŵĞŶƚŽĨsĂůƵĞĚĚĞĚŝůůƵƐƚƌĂƚĞƐŚŽǁ^ŝŵĞĂƌďLJ͛ƐƉĞƌĨŽƌŵĂŶĐĞƐƵƉƉŽƌƚƐƚŚĞ'ƌŽƵƉ͛ƐĂďŝůŝƚLJƚŽĚĞůŝǀĞƌĮŶĂŶĐŝĂůǀĂůƵĞƚŽŝƚƐ
ƐƚĂŬĞŚŽůĚĞƌƐ͘

dŚĞĮŶĂŶĐŝĂůǀĂůƵĞŝŶƚŚĞƐƚĂƚĞŵĞŶƚŝƐďĂƐĞĚŽŶƚŚĞWƌŽĮƚďĞĨŽƌĞ&ŝŶĂŶĐĞŽƐƚƐ͕ŽƌƉŽƌĂƚĞ^ŽĐŝĂůZĞƐƉŽŶƐŝďŝůŝƚLJ;^ZͿĞdžƉĞŶƐĞƐ͕dĂdž͕
ĞƉƌĞĐŝĂƟŽŶΘŵŽƌƟƐĂƟŽŶĂŶĚ^ƚĂīŽƐƚ͘

ZDŵŝůůŝŽŶ FY2017 FY2018

ŝƌĞĐƚŽƌĂŶĚĞŵƉůŽLJĞĞƐ Ϯ͕ϴϲϯ 2,863

'ŽǀĞƌŶŵĞŶƚĂŶĚƐŽĐŝĞƚLJ 1
Ϯϲϰ 405
PROVIDERS OF CAPITAL
ŝǀŝĚĞŶĚƐ2 ϯϵϱ 544
&ŝŶĂŶĐĞĐŽƐƚƐϯ ϯϮϬ 129
EŽŶͲĐŽŶƚƌŽůůŝŶŐŝŶƚĞƌĞƐƚƐĂŶĚƉĞƌƉĞƚƵĂů 180 67
ϴϵϱ 740
ZĞŝŶǀĞƐƚŵĞŶƚĂŶĚĨƵƚƵƌĞŐƌŽǁƚŚ 801 695
dŽƚĂůŝƐƚƌŝďƵƚĞĚ ϰ͕ϴϮϯ 4,703

EŽƚĞƐ͗
1
 dĂdžĂŶĚ^ZĞdžƉĞŶƐĞƐ
2
 ŝǀŝĚĞŶĚƐƌĞĨĞƌƚŽĚŝǀŝĚĞŶĚƐĚĞĐůĂƌĞĚĨŽƌƚŚĞƌĞƐƉĞĐƟǀĞĮŶĂŶĐŝĂůLJĞĂƌƐ
ŝǀŝĚĞŶĚƐĨŽƌ&zϮϬϭϳĐĂůĐƵůĂƚĞĚďĂƐĞĚŽŶƉĞƌĐĞŶƚĂŐĞŽĨŶĞƚƉƌŽĮƚĨƌŽŵĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐƚŽ'ƌŽƵƉŶĞƚƉƌŽĮƚ
ϯ
 'ƌŽƐƐĮŶĂŶĐĞĐŽƐƚƐ

Employees Government & Society Providers of Capital Reinvestment and future growth

695
801

FY2017
FY18 REVENUE BY 2,863 740 FY2018 2,863
RM4,823
GEOGRAPHICAL RM4,703
895 LOCATION ŵŝůůŝŽŶ
ŵŝůůŝŽŶ
• 10%

• 38% 405

264
• 18%

• 14%

ANNUAL REPORT 2018 page 33

 ϱͳzZ&/EE/>,/',>/',d^

FINANCIAL YEAR ENDED 30 JUNE (RM MILLION) 20141 20151 20162 2017 2018

FINANCIAL RESULTS
ZĞǀĞŶƵĞ* ϯϬ͕ϭϲϯ ϯϬ͕ϬϬϱ Ϯϵ͕ϰϱϮ ϯϭ͕Ϭϴϳ 33,828
WƌŽĮƚďĞĨŽƌĞŝŶƚĞƌĞƐƚĂŶĚƚĂdž* ϭ͕ϳϲϵ ϭ͕ϮϰϬ ϵϰϯ ϳϴϰ 1,074
WƌŽĮƚďĞĨŽƌĞƚĂdž *
ϭ͕ϴϬϵ ϭ͕ϮϱϬ ϭ͕Ϭϰϲ ϭ͕ϬϬϳ 1,065
*
WƌŽĮƚĂŌĞƌƚĂdž ϭ͕ϱϲϬ ϣ͕ϢϦϤ ϪϨϦ ϩϫϧ ϨϪϧ
*
EŽŶͲĐŽŶƚƌŽůůŝŶŐŝŶƚĞƌĞƐƚƐĂŶĚƉĞƌƉĞƚƵĂůƐƵŬƵŬ ;ϩϩͿ ;ϤϨͿ ;ϩϤͿ ;ϣϪϢͿ ;ϨϩͿ
WƌŽĮƚĂƩƌŝďƵƚĂďůĞƚŽŽǁŶĞƌƐŽĨƚŚĞŽŵƉĂŶLJ
ͲĐŽŶƟŶƵŝŶŐŽƉĞƌĂƟŽŶƐ ϣ͕ϦϪϥ ϣ͕ϢϣϨ ϩϫϤ Ϩϣϧ ϨϣϪ
ͲĚŝƐĐŽŶƟŶƵĞĚŽƉĞƌĂƟŽŶƐ Ϥ͕Ϣϣϫ ϣ͕ϦϣϦ ϣ͕ϨϤϨ ϣ͕ϪϤϥ ϣ͕ϥϢϣ
ͲdŽƚĂů ϥ͕ϧϢϤ Ϥ͕ϦϥϢ Ϥ͕ϦϣϪ Ϥ͕ϦϥϪ ϣ͕ϫϣϫ

FINANCIAL POSITION
^ŚĂƌĞĐĂƉŝƚĂůĂŶĚƐŚĂƌĞƉƌĞŵŝƵŵ ϯ͕ϱϴϳ ϰ͕ϵϬϭ ϱ͕ϳϲϲ ϵ͕Ϯϵϵ 9,299
ZĞƐĞƌǀĞƐŽƚŚĞƌƚŚĂŶƐŚĂƌĞƉƌĞŵŝƵŵ Ϯϰ͕ϴϲϲ Ϯϱ͕ϲϲϴ Ϯϲ͕ϲϮϵ Ϯϴ͕Ϭϰϰ 5,071
^ŚĂƌĞŚŽůĚĞƌƐ͛ĞƋƵŝƚLJ Ϯϴ͕ϰϱϯ ϯϬ͕ϱϲϵ ϯϮ͕ϯϵϱ ϯϳ͕ϯϰϯ 14,370
WĞƌƉĞƚƵĂůƐƵŬƵŬ Ͳ Ͳ Ϯ͕ϮϯϬ Ϯ͕ϮϯϬ -
EŽŶͲĐŽŶƚƌŽůůŝŶŐŝŶƚĞƌĞƐƚƐ ϴϲϬ ϭ͕ϬϬϯ ϵϲϱ ϵϳϲ 389
dŽƚĂůĞƋƵŝƚLJ Ϯϵ͕ϯϭϯ ϯϭ͕ϱϳϮ ϯϱ͕ϱϵϬ ϰϬ͕ϱϰϵ 14,759
ŽƌƌŽǁŝŶŐƐ ϯ
ϭϭ͕ϯϮϳ ϭϴ͕ϮϬϵ ϭϱ͕ϵϲϴ ϯ͕ϮϬϱ 2,889
>ŝĂďŝůŝƟĞƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚĂƐƐĞƚƐŚĞůĚĨŽƌĚŝƐƚƌŝďƵƟŽŶ Ͳ Ͳ Ͳ ϭϳ͕ϮϵϬ -
KƚŚĞƌůŝĂďŝůŝƟĞƐ ϭϬ͕ϱϴϰ ϭϮ͕ϰϱϳ ϭϮ͕ϵϱϭ ϲ͕ϲϯϲ 7,225
dŽƚĂůĞƋƵŝƚLJĂŶĚůŝĂďŝůŝƟĞƐ ϱϭ͕ϮϮϰ ϲϮ͕Ϯϯϴ ϲϰ͕ϱϬϵ ϲϳ͕ϲϴϬ 24,873
EŽŶͲĐƵƌƌĞŶƚĂƐƐĞƚƐ Ϯϲ͕ϰϯϵ ϯϲ͕ϯϬϳ ϯϵ͕ϴϮϲ ϭϬ͕ϴϱϯ 10,412
ƵƌƌĞŶƚĂƐƐĞƚƐĞdžĐůƵĚŝŶŐĂƐŚ ϭϵ͕ϴϴϵ Ϯϭ͕ϳϯϬ Ϯϭ͕ϭϲϮ ϭϮ͕Ϯϴϲ 12,789
ƐƐĞƚƐŚĞůĚĨŽƌĚŝƐƚƌŝďƵƟŽŶ Ͳ Ͳ Ͳ ϰϮ͕ϰϲϵ -
ĂƐŚ ϰ͕ϴϵϲ ϰ͕ϮϬϭ ϯ͕ϱϮϭ Ϯ͕ϬϳϮ 1,672
dŽƚĂůĂƐƐĞƚƐ ϱϭ͕ϮϮϰ ϲϮ͕Ϯϯϴ ϲϰ͕ϱϬϵ ϲϳ͕ϲϴϬ 24,873

FINANCIAL RATIOS
KƉĞƌĂƟŶŐŵĂƌŐŝŶ;йͿ* ϱ͘ϲ ϰ͘Ϯ ϯ͘ϭ Ϯ͘ϰ 3.3
ZĞƚƵƌŶŽŶĂǀĞƌĂŐĞƐŚĂƌĞŚŽůĚĞƌƐ͛ĞƋƵŝƚLJ;йͿ ϭϮ͘ϳ ϴ͘Ϯ ϳ͘ϳ ϳ͘Ϭ 7.4
ĞďƚͬƋƵŝƚLJ;йͿ ϰ
ϯϴ͘ϲ ϱϳ͘ϳ ϰϰ͘ϵ ϯϮ͘ϰ 19.6

SHARE INFORMATION
ĂƐŝĐĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ;ƐĞŶͿ ϱϴ͘Ϭ ϯϵ͘ϲ ϯϴ͘ϱ ϯϲ͘ϳ 28.2
EĞƚĂƐƐĞƚƐƉĞƌƐŚĂƌĞĂƩƌŝďƵƚĂďůĞƚŽŽǁŶĞƌƐ ϰ͘ϳ ϰ͘ϵ ϱ͘ϭ ϱ͘ϱ 2.1
ŽĨƚŚĞŽŵƉĂŶLJ;ZDͿ
EĞƚĚŝǀŝĚĞŶĚƉĞƌƐŚĂƌĞ;ƐĞŶͿ ϯϲ Ϯϱ Ϯϳ Ϯϯ 8

EŽƚĞƐ͗
1
 dŚĞĐŽŵƉĂƌĂƟǀĞƐŚĂǀĞŶŽƚďĞĞŶƌĞƐƚĂƚĞĚĨŽůůŽǁŝŶŐƚŚĞĮƌƐƚͲƟŵĞĂĚŽƉƟŽŶŽĨD&Z^ĨƌĂŵĞǁŽƌŬĂŶĚĞĂƌůLJĂĚŽƉƟŽŶŽĨD&Z^ϭϱͲZĞǀĞŶƵĞĨƌŽŵŽŶƚƌĂĐƚƐǁŝƚŚƵƐƚŽŵĞƌƐ
2
 ZĞƐƚĂƚĞĚĨŽůůŽǁŝŶŐĂĚŽƉƟŽŶŽĨƚŚĞD&Z^ĨƌĂŵĞǁŽƌŬĂŶĚĞĂƌůLJĂĚŽƉƟŽŶŽĨD&Z^ϭϱ
ϯ
ŽƌƌŽǁŝŶŐƐŝŶĐůƵĚĞĮŶĂŶĐĞůĞĂƐĞƐ
ϰ
 ĞďƚŝŶĐůƵĚĞƐďŽƌƌŽǁŝŶŐƐƵŶĚĞƌůŝĂďŝůŝƟĞƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚĂƐƐĞƚƐŚĞůĚĨŽƌĚŝƐƚƌŝďƵƟŽŶ
*
 dŚĞĮŶĂŶĐŝĂůƌĞƐƵůƚƐŚĂǀĞďĞĞŶƌĞƐƚĂƚĞĚƚŽĞdžĐůƵĚĞĚŝƐĐŽŶƟŶƵĞĚŽƉĞƌĂƟŽŶƐ

page 34 SIME DARBY BERHAD