Drb-hicom Bhd. · MYX:DRBHCOM
Drb-hicom Bhd — Shareholder Meeting (September 2014)
15 slides from Drb-hicom Bhd's shareholder meeting presentation, Sep 30, 2014
Slide 1: Annual General Meeting: Queries & Answers for MSWG
Annual General Meeting Queries & Answers for Minority Shareholder Watchdog Group (MSWG) 30 September, 2014
Slide 2: Question 1: Automotive segment profit decline
Question 1: As disclosed in Note 59 of the Annual Report, the Automotive Segment recorded revenue of RM10.7 billion and profit of RM88.2 million for FYE 31 March 2014 compared to revenue of RM10.1 billion and profit of RM194.9 million in the previous financial year. What was the reason for the decre
Slide 3: Answer 1: Revenue increase and PROTON sales decline
Answer 1: The increase in revenue for FYE 31 March 2014 (FY14) was largely attributed to the inclusion of sales revenue of Composites Technology Research Malaysia Sdn. Bhd., the newly acquired subsidiary company during the financial year and also the higher revenue from other automotive companies. T
Slide 4: Question 2: PROTON market share
Question 2: While we note that PROTON remained as the second most popular car brand in Malaysia, its market share in passenger vehicles as at June 2014 of 21.2% was lower than its market share of 24.1% as at December 2013, according to the Market Review by Malaysian Automotive Association. i. What a
Slide 5: Answer 2 (i): New models and variants
Answer 2 (i): a) PROTON is working on developing the new range of products and powertrain for the mid to long term to replace existing models which will be gradually phased out over the coming years. b) PROTON will continue to optimize the existing product range and improve the specifications, as we
Slide 6: Answer 2 (i) (cont'): Iriz launch and cost and quality
Answer 2 (i) (cont’): c) To augment our position in the B segment, PROTON introduced a new model named “Iriz” on 25 September 2014, 1.3-liter and 1.6-liter compact car to represent PROTON in the B-hatch segment. As at 24 September 2014, 17,000 bookings have been recorded during the 1-week pre-launch
Slide 7: Question 2(ii): PROTON turnaround plan
Question 2(ii): Could the Board also provide an update on PROTON’s turnaround plan under the leadership of the newly appointed Chairman? 7
Slide 8: Answer 2(ii): Three focus areas for PROTON transformation
Answer 2(ii): Guided by the acquisition plan, DRB-HICOM has set specific channels for transformation of PROTON, mainly to focus on three (3) main areas: 1) Finalisation of Long Range Product Plan spreading over a period of 5 years to strengthen product offer and market presence 2) Rationalisation of
Slide 9: Question and Answer 2(iii): Group Lotus update
Question 2(iii): Could the Board also update on the latest development in the Group Lotus Plc as we note a new CEO has been appointed in May this year? Answer 2(iii): In the first 5 months of FY14/15, LOTUS sold 914 units globally, putting it on course to comfortably top the 1,232 units sold last ye
Slide 10: Answer 2(iii) (cont'): Lotus dealers and production
Answer 2(iii) (cont’): b) Review and appointment of dealerships, especially in Europe and Asia. Over the last 6 months, 9 new dealers have been appointed including in Germany, France, Iran and Philippines. c) Stabilize production to 40 units per week from 20-30 units previously. d) Improvement on pr
Slide 11: Question 3: Contribution of two acquisitions
Question 3: As stated in the Group Managing Director’s Review of Operations, the Group completed two major acquisitions, namely Composites Technology Research Malaysia Sdn Bhd and Konsortium Logistik Bhd, which would strengthen the Group’s Automotive and Services sectors. Would the Board expect thes
Slide 12: Answer 3: CTRM and KLB acquisitions
Answer 3: The acquisition of CTRM provides immediate access into the aero-nautical sector especially in the rapidly expanding demand for aircrafts from the aviation companies. CTRM is a super tier-2 supplier to Airbus and Boeing. As at 31 March 2014, CTRM has an outstanding order book of RM5.68 bill
Slide 13: Answer 3 (cont'): Logistics integration and market size
Answer 3 (cont’): This is further complemented by the extensive network of Pos Malaysia, our associated company, and the Group will be able to lead in the provision of integrated logistics services including the extension of our services to the last-mile through Pos Malaysia. The logistic business i
Slide 14: Question and Answer 4: Increase in R&D expenditure
Question 4: What was the reason for the increase in research and development expenditure from RM33 million to RM66.9 million in FYE 31 March 2014? Answer 4: The research and development (“R&D”) expenditure incurred by the Group was largely contributed by PROTON. PROTON as a full-fledged car manufact
Slide 15: Thank You
THANK YOU | DRB-HI ICOM
DRB-HICOM Berhad — Shareholder Meeting (September 2014) on 6ix