Drb hicom reports rm123.19 million in pre-tax profit for q2 2025

Stronger performance recorded across key sectors

The stronger results in Q2 2025 was mainly driven by higher profit in the Banking sector, supported by increased financing and investment income as well as a reduction in the impairment allowances due to improved recoveries. Improved contributions from the Automotive, Postal, Properties, and Services sectors also reinforced the overall performance.

For the first half of 2025 ("1H 2025"), the Group recorded a PBT of RM215.81 million and revenue of RM8.25 billion, compared with a PBT of RM236.70 million and revenue of RM8.09 billion in the corresponding period of 2024. Stronger contributions from the Banking and Services sectors partially offset softer performances in other sectors, thereby supporting the Group's overall performance stability.

The Group's revenue for 1H 2025 recorded a modest increase of 2.0% to RM8.25 billion, compared with RM8.09 billion in the corresponding period of 2024. Sectoral performance was as follows:

• Automotive: Revenue rose 1.7% to RM5.68 billion (1H 2024: RM5.59 billion), supported by higher contributions from PROTON, driven by a favourable sales mix and increased sales volume from automotive distribution companies.
• Banking: Revenue improved by 5.3% to RM1.09 billion (1H 2024: RM1.04 billion), supported by higher financing income arising from sustainable loan growth and an expanding customer base.
• Postal: Revenue increased slightly by 1.5% to RM890.49 million (1H 2024: RM877.52 million), primarily from higher uplift volumes in the in-flight catering business. This was partly offset by weaker freight management operations and continued decline in traditional mail services.
• Aerospace & Defence: Revenue declined 12.7% to RM343.91 million (1H 2024: RM394.06 million), reflecting lower deliveries of single-aisle aircraft and selected aircraft parts amid softer airline demand.
• Properties: Revenue grew 34.0% to RM140.92 million (1H 2024: RM105.20 million), mainly driven by contributions from property concession and development projects.
• Services: Revenue rose 14.5% to RM103.49 million (1H 2024: RM90.35 million), largely due to a higher turnout of commercial vehicles in the vehicle inspection business.

The Malaysian economy is projected to grow between 4.0% and 4.8% in 2025, supported by resilient domestic demand. Bank Negara Malaysia reduced the Overnight Policy Rate to 2.75% in July 2025, aimed at preserving Malaysia's steady growth path amid moderate inflation prospects. Meanwhile, the global outlook remains challenging largely driven by uncertainties over US tariff policies and fiscal sustainability.

The Malaysian Automotive Association anticipates a lower Total Industry Volume in 2025 compared to 2024, with the sector continuing to be impacted by dampened consumer demand, rising competition, and potential effects from fuel subsidy rationalisation. The sales performance of the Group's new models will hinge on consumer sentiment and overall economic conditions.

Other businesses within the Group will remain focused on building resilience through stronger risk management and sustainability efforts. Digital transformation is progressing in the Banking and Postal segments, while other sectors, namely Aerospace and Defence, Services, and Properties remain committed to strengthening business capabilities for the long-term growth.

The Group anticipates a moderate outlook for the financial year ending 31 December 2025.

https://www.drb-hicom.com

DRB-HICOM Berhad ("DRB-HICOM") is one of Malaysia's leading group of companies with core businesses in the Automotive, Aerospace & Defence, Banking, Postal, Services, and Properties sectors. With 89 active companies in its stable and more than 42,000 employees group-wide, DRB-HICOM's aim is to continue adding value and propelling the nation's development. In the Automotive sector, DRB-HICOM is involved in the manufacturing, assembly and distribution of passenger and commercial vehicles, including the national motorcycle. In Aerospace and Defence, DRB-HICOM is involved through its subsidiaries CTRM and DEFTECH, while it is represented in the postal segment through its subsidiaries Pos Malaysia, and banking through Bank Muamalat. In the Services segment, DRB-HICOM is involved in various businesses, including concession, education, aviation and logistics and investment holdings whereas in Properties, DRB-HICOM is involved in the development of industrial properties.

STATEMENT ON FORWARD - LOOKING DISCLOSURES

All statements herein, other than historical facts, contain forward-looking statements and are based on DRB-HICOM's current forecasts, expectations, targets, plans, and evaluations. Any forecasted value is calculated or obtained based on certain assumptions. Forward-looking statements involve inherent risks and uncertainties.

A number of significant factors could therefore cause actual results to differ from those contained in any forward-looking statement. Significant risk factors include:

• Feasibility of each target and initiative as laid out in this news release;

• Fluctuations in interest rates, exchange rates and oil prices;

• Changes in laws, regulations and government policies; and

• Regional and/or global socioeconomic changes.

Potential risks and uncertainties are not limited to the above and DRB-HICOM are not under any obligation to update the information in this news release to reflect any developments or events in the future.

If you are interested in investing in DRB-HICOM, your investment decision is at your own risk, taking the foregoing into consideration. Please note that neither DRB-HICOM nor any third-party providing information shall be responsible for any loss or damage that may result from your investment in DRB-HICOM based on the information presented in this news release.

Leong Shen-li (Mr)

Senior Manager

Group Strategic Communications Division DRB-HICOM Berhad

Tel: +603 2052 8066

leong.shenli@drb-hicom.com