4QFY2017 Financial Results - drb-hicom.com · DRB-HICOM on 24 May 2017 had signed the Heads of Agreement with Geely on the Proposed Joint Venture ... 110.8 37.5 293.8 427.3 4Q16 3Q17

4QFY2017 Financial Results

Quarter Ended 31 March 2017

Disclaimer

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The forecasts and other forward-looking statements set out in this presentation are based on a number of estimates and assumptions that are subject to business, economic and competitive uncertainties and contingencies, with respect to future business decisions, which are subject to change and in many cases outside the control of the Company. The directors and officers of the Company believe that they have prepared the forecasts with due care and attention and consider all best estimates and assumptions when taken as a whole to be reasonable at the time of preparing the presentation. However, the Company’s forecasts presented in this presentation may vary from actual financial results, and these variations may be material and, accordingly, neither the Company nor its directors or officers can give any assurance that the forecast performance in the forecasts or any forward-looking statement contained in this presentation will be achieved. Details of the forecasts and the assumptions on which they are based are set out in the presentation.

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2

Key Highlights

Recorded revenue of RM12.06 billion in FY17 (FY16: RM12.17 billion). 1

Lower LBT y-o-y by 73.0% mainly due to:- 1) Gain realised on disposal of Corwin Holding Pte. Ltd. of RM398.1 million 2) One-off exceptional loss on re-measurement of previously held equity interest in Pos Malaysia of

RM130.22 million 3) Lower losses incurred by PROTON 4) Higher profit contribution from Services sector

2

Subdued sales of motor vehicles and lower AV8 percentage of completion dampened overall Automotive performance.

3

Services improved by 41.4% contributed by higher performance from Logistics since Pos Malaysia’s consolidation into the Group in September 2016.

4

3

The search for PROTON’s foreign strategic partner has concluded via signing of Heads of Agreement (“HoA”) with Zhejiang Geely Holding Group Co., Ltd. (“Geely”) on 24 May 2017.

5

Foreign Strategic Partnership

4

Geely to acquire 49.9% equity in PROTON Holdings Berhad (“PROTON”)

DRB-HICOM to divest 100% equity in Lotus Advance Technologies Sdn. Bhd. to Geely and Etika Automotive Sdn. Bhd.

Upon the completion of Proposed JV / Divestment, the Group and Geely will respectively hold proportionate shareholding as depicted in Table 1 below, subject to the terms and conditions of the definitive agreements to be entered into.

New strategic partner will provide synergies on R&D, technology and platform to reduce cost and revitalise PROTON market share.

The Group intend to safeguard the recognition of PROTON as Malaysia national car company while building and enhancing Malaysia’s national automotive industry and facilitating the goal of making Malaysia a preferred automotive hub in South East Asia.

Definitive Agreement will be signed by third quarter of 2017.

DRB-HICOM on 24 May 2017 had signed the Heads of Agreement with Geely on the Proposed Joint Venture (“JV”) / Divestment as follow:

Table 1: New Shareholding Structure

Results Summary for the Financial Year Ended 31 March 2017

(RM million)

4Q16 3Q17 4Q17 FY16 FY17

Operating Revenue 2,632.8 3,431.9 3,481.6 12,172.9 12,058.3

Other Income 71.1 565.7 115.2 469.5 837.5

Cost of Sales and Operating Expenses

(3,220.1) (3,434.6) (3,533.9) (12,981.8) (12,304.9)

(Loss)/Profit Before Tax (744.3) 422.3 (255.6) (822.1) (222.2)

EPS (sen) (40.90) 18.26 (16.99) (51.35) (23.50)

5

Automotive 67%

Services 30%

PAC 3%

FY17 Revenue Breakdown by Segment

1,901.1 2,274.9 2,110.1

9,365.9 8,077.5

620.9 1,119.5 1,124.6

2,513.2

3,553.5

110.8

37.5 246.9

293.8 427.3

4Q16 3Q17 4Q17 FY16 FY17

Automotive Services PAC

Group Revenue

(RM million)

2,632.8 3,431.9 3,481.6

6

QoQ: 1.4%

YoY: 32.2%

YoY: 0.9%

12,172.9 12,058.3

Note: PAC – Property, Asset and Construction

RM12.1 billion

(772.5)

(20.1)

(478.2)

(953.6) (813.8)

29.3 94.5 141.7 251.9 360.8 12.7

395.2 98.5

18.6

485.8

4Q16 3Q17 4Q17 FY16 FY17

Automotive Services PAC

(RM million)

Group PBT/(LBT)

Total PBT figures include Investment Holding as tabulated below:-

(RM million) 4Q16 3Q17 4Q17 FY16 FY17

Investment Holding (13.8) (47.3) (17.6) (139.0) (255.0)

7

(744.3)

422.3

(255.6) (822.1)

(222.2)

Note: PAC – Property, Asset and Construction

YoY: 65.7%

QoQ: 4.4%

QoQ: 73.0%

AD 18%

AC 8%

D&A 23%

PROTON 51%

FY17 Automotive Revenue Breakdown

320.8 396.4 430.2 1,440.7 1,478.8

207.2 183.0 182.3

674.7 649.5

438.2 574.3 300.9

2,463.2 1,815.7

934.9 1,121.2 1,196.7

4,787.3

4,133.5

4Q16 3Q17 4Q17 FY16 FY17

Automotive Distribution (AD) Automotive Component (AC) Defence & Aviation (D&A) PROTON

8

Automotive Revenue

1,901.1 2,274.9 2,110.1

YoY: 11.0%

(RM million)

8,077.5

9,365.9

YoY: 13.8%

QoQ: 7.2%

RM8.1 billion

1,531

794

FY16 FY17

1,468 1,442

FY16 FY17

93,718

72,441

FY16 FY17

91,534

100,336

FY16 FY17

Marque Sales Performance

9

Units

Source: MAA

(April 2016 to March 2017)

10,344

8,696

FY16 FY17

12,407

12,764

FY16 FY17

7%

5%

Honda 51%

PROTON 37%

DRB-HICOM’s Market Share

10

589,708 units

Total Industry Volume

195,031 units

Market Share YTD (April 2016 to March 2017)

New Launches from January to March 2017

DRB-HICOM 33%

Others 67%

Banking 34%

Concession 24%

Logistic 41%

Education 1%

FY17 Services Revenue Breakdown

327.8 297.0 294.8

1,202.5 1,204.0 163.9 223.5 221.5

811.3 855.6

124.5

594.4 602.6

484.0

1,473.5

4.7

4.6 5.7

15.4

20.4

4Q16 3Q17 4Q17 FY16 FY17

Banking Concession Logistic Education

11

Services

QoQ: 0.5%

YoY: 81.1%

1,119.5

620.9

1,124.6

Revenue

(RM million)

RM3.6 billion

YoY: 41.4%

2,513.2

3,553.5

110.8

37.5

246.9

293.8

427.3

4Q16 3Q17 4Q17 FY16 FY17

12

Property, Asset and Construction

QoQ: >100%

YoY: >100%

Revenue

Glenmarie Johor

Laman Glenmarie

Proton City

(RM million)

YoY: >100%

Financial Position and Key Ratios

13

(RM billion) As at

31 Mar‘17

As at 31 Mar’16 (Audited)

Property, Plant & Equipment 6.4 5.7

Banking Related Assets 22.9 22.1

Inventories 2.3 1.8

Cash & Bank Balances 2.9 2.0

Trade & Other Receivables 4.3 4.6

Others 5.0 5.8

TOTAL ASSETS 43.8 42.0

Equity attributable to Owners of the Company 6.1 6.5

Perpetual Sukuk 1.1 1.1

Non-controlling Interest 3.0 0.9

Short Term Borrowings (include OD) 2.1 2.6

Long Term Borrowings 4.3 4.3

Banking Related Liabilities 20.0 19.6

Others 7.2 7.0

TOTAL EQUITY & LIABILITIES 43.8 42.0

As at 31 Mar‘17

As at 31 Mar’16 (Audited)

Net Assets Per Share (RM) 3.14 3.38

Gearing Ratio (times)*: Gross Net

0.62 0.29

0.81 0.51

Return on Equity (%) (7.48) (15.17)

Return on Capital Employed (%)

0.90 (2.86)

Note: * Based on Total Equity

Shareholders of DRB-HICOM

14

As at 31 March 2017

(%)

55.9 55.9 55.9 55.9 55.9 55.9 55.9 55.9

14.7 14.2 13.2 11.8 9.3 8.7 8.6 8.8

8.1 7.9 7.6 7.5 6.8 5.6 5.2 4.7

4.7 4.7 4.7 4.7 4.7

4.7 4.7 5.0

3.9 3.9 3.9 3.9 3.9

3.9 3.9 3.9

Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

Etika Strategi Sdn Bhd Foreign Shareholders Employees Provident Fund Lembaga Tabung Haji Kumpulan Wang Persaraan (Diperbadankan)

For enquiries, please contact us at:-

Investor Relations Level 5, Wisma DRB-HICOM No. 2 Jalan Usahawan U1/8 40150 Shah Alam, Selangor Malaysia

email : [email protected]

tel : 603-2052 8194 / 8213

fax : 603-2052 8228