SIME DARBY BHD &

KULIM (MALAYSIA) BHD

HANIS HAZWANI BINTI AHMAD

817801

Palm Oil Industry Important for the economy of Malaysia

Most efficient oilseed crop in the world

Indonesia and Malaysia produce about 85% of the World’s palm oil e.g. Thailand, Columbia, Nigeria, Papua New Guinea and Ecuador.

Increasing crude oil prices resulted in increasing production, shipping and distribution costs, increased competition in most market & the strengthening of the Ringgit Malaysia.

The year 2012 Lower Crude Palm Oil production resulted of lower

Fresh Fruit Bunches

Palm oil prices declined – Increased Crude Palm Oil production as well as weaker export demand

SIME DARBY BERHAD

KULIM BERHAD

Financial Reporting Standards

Kulim Berhad – IFRS

Sime Darby Berhad - IFRS

INVENTORY Cost of agricultural produce is based on the weighted

average method Cost of direct materials and an appropriate proportion of estate

revenue expenditure, manufacturing costs and overhead costs

based on normal operating capacity.

Ratio Analysis

LIQUIDITY RATIO

2008 2009 2010 2011 2012 2013 -

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Quick RatioSime Darby Bhd Kulim Bhd

PROFITABILITY RATIO

2008 2009 2010 2011 2012 20130%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Return on AssetsKulim Bhd Sime Darby Bhd

2008 2009 2010 2011 2012 20130%2%4%6%8%

10%12%14%16%18%20%

Return on EquityKulim Bhd Sime Darby Bhd

OPERATING PERFORMANCE

2008 2009 2010 2011 2012 20130.00

2.00

4.00

6.00

8.00

10.00

12.00

Inventory TurnoverKulim Bhd Sime Darby Bhd

2008 2009 2010 2011 2012 20130

102030405060708090

100

Average Collection PeriodSime Darby Bhd Kulim Bhd

2008 2009 2010 2011 2012 20130.00

2.00

4.00

6.00

8.00

10.00

Account Receivable Turnover

Kulim Bhd Sime Darby Bhd

SWOT Analysis

STRENGTH-Biggest oil palm seed producer in the world-Unique geographical diversification

THREAT-Labour shortage -Papua New Guinea and the Solomon Islands are both located on the Pacific Fire Ring

KULIM (MALAYSIA) BHD

OPPORTUNITY-Replanting in Johor -Well-positioned to tap into Europe’s demand -International sustainability and carbon certification (ISCC)

WEAKNESS

-No exposure to other states in Malaysia

STRENGTH• Strong reputation • the largest listed

plantation

WEAKNESS• Labour shortages • Highly dependant on the

cyclical plantations sector

OPPORTUNITY•large asset base and being a Government Linked Company (GLC)•Opens doors when entering new markets and establishing good•Government contacts in foreign countries

THREAT•Smaller companies would be immediate and more opportunistic•Having six core businesses

SIME DARBY

BERHAD

THANK YOU