Drb hicom reports rm236.70 million profit before tax for h1 2024

DRB-HICOM REPORTS RM236.70 MILLION

PROFIT BEFORE TAX FOR H1 2024

Revenue Remains Stable at RM8.09 billion

SHAH ALAM, Wednesday, 28 August 2024 - DRB-HICOM Berhad ("DRB-HICOM", "the Group") reported a revenue of RM8.09 billion for the first half of 2024 ("H1 2024"), reflecting marginal growth compared to RM8.08 billion in the first half of 2023 ("H1 2023"). The Group recorded a pre-tax profit ("PBT") of RM236.70 million, a decline from RM285.71 million reported in the corresponding period last year.

For the second quarter ended 30 June 2024 ("Q2 2024"), the Group's pre-tax profit was RM25.93 million, impacted by a decrease in revenue to RM3.76 billion from RM3.98 billion in Q2 2023. The revenue decline was primarily due to lower sales in the Automotive, Postal, and Properties sectors. In the Automotive sector, Proton vehicle sales were affected by a scheduled plant maintenance shutdown during the quarter under review.

REVENUE GROWTH DRIVEN BY STRENGTH IN BANKING, AEROSPACE & DEFENCE, AND

SERVICES SECTORS

In the Banking sector, the Group reported a significant revenue increase to RM1.04 billion in H1 2024, marking a 28.3% rise from RM0.81 billion in H1 2023. This growth was primarily driven by higher financing income, resulting from increased financing volume, supported by sustainable growth and an expanding customer base.

The Aerospace and Defence sector saw revenue reach RM394.06 million in H1 2024, up from RM312.84 million in H1 2023. This improvement was mainly attributed to the higher volume of product deliveries, including single-aisle aircraft and specific aircraft parts.

The Services sector recorded a 7.7% increase in revenue, achieving RM436.12 million in H1 2024, up from RM405.06 million in H1 2023. This growth was primarily driven by the in-flight

catering business, which saw a significant rise in meal preparations, and the ground handling business which benefited from an increasing number of flights.

PROSPECTS FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2024

The Malaysian economy is expected to maintain its growth trajectory underpinned by healthy domestic demand and export sector. This is further strengthened by Bank Negara Malaysia's decision to hold the Overnight Policy Rate steady at 3%, indicating continued support for economic expansion. Nevertheless, global outlook remains volatile due to various concerns including elevated inflation, interest rates, fiscal consolidation and on-going geopolitical tensions.

The Malaysian Automotive Association announced a revised total industry volume forecast of 765,000 units for 2024. Despite this revision, the forecast remains lower than the record- breaking sales of 799,731 units achieved in 2023. Softer demand is expected in the second half of the year, given the anticipation of fuel subsidy rationalisation and weaker consumer sentiment.

As for the national carmaker PROTON, the newly launched improved versions of the X50 and X70 have received overwhelming responses, with more than 8,000 and 2,000 bookings respectively since their launches in June and August. New model launches by other marques within the Group, together with the upcoming launch of PROTON's first electric vehicle ("EV") model, the Proton e.MAS 7, are expected to contribute positively to the Group's Automotive Sector.

The Group continues to focus on adoption of technology and digital transformation, especially in its Banking, Postal and Services sectors. For the other sectors, namely Properties, and Aerospace and Defence, the Group remains committed in embracing sustainable practices towards strengthening business resilience.

The Group maintains a satisfactory outlook for the financial year ending 31 December 2024.

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