Drb hicom reports rm282.56 million in pbt for first nine months of fy2024

DRB-HICOM REPORTS RM282.56 MILLION IN PBT FOR FIRST NINE MONTHS OF FY2024

Revenue remains stable at RM12.23 billion despite evolving challenges

SHAH ALAM, Thursday, 21 November 2024 - DRB-HICOMBerhad ("DRB-HICOM","the Group") reported a pre-taxprofit ("PBT") of RM282.56 million for the first nine months of FY2024, supported by stable revenue of RM12.23 billion, reflecting a marginal increase of 1.2% compared to the corresponding period ended 30 September 2023.

For the current quarter ended 30 September 2024, the Group recorded a PBT of RM45.86 million, with revenue rising by 3.4% to RM4.13 billion, compared to RM4.00 billion in the same quarter of FY2023. This revenue growth reflects the Group's resilience and ability to adapt to evolving market conditions, driven by contributions from its core sectors despite ongoing challenges.

REVENUE GROWTH IN BANKING, AEROSPACE & DEFENCE, AND SERVICES SECTORS

During the quarter under review, the Automotive and Postal sectors experienced a decline in revenue. The Automotive sector faced reduced vehicle sales volume due to intensified competition in the local car market. Meanwhile, the Postal sector's revenue decreased mainly due to a decline in international business and bulk mail volume within the mail business segment, driven by lower cross-border volumes amidst an industry-wide slowdown.

Despite the challenges, the Group recorded revenue growth in other key sectors:

• Banking: Revenue increased by 26.2% to RM1.59 billion for the first nine months of
  FY2024 (9MFY2023: RM1.26 billion), driven by higher financing income, attributed to growth in financing volume, supported by sustainable growth and an expanding customer base.
• Aerospace and Defence: Revenue grew by 24.0% to RM584.05 million (9MFY2023: RM470.83 million), reflecting higher deliveries of single-aisle aircraft and selected aircraft parts.

• Services: Revenue rose by 13.4% to RM691.50 million (9MFY2023: RM609.93 million), supported by increased activity in in-flight catering and ground handling business, in line with the recovery in air travel.

PROSPECTS FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2024

The Malaysian economy is expected to sustain growth, driven by resilient domestic demand and rising exports. Bank Negara Malaysia's decision to maintain the Overnight Policy Rate at 3% provides an accommodative environment for businesses to grow, while stimulating domestic consumption to maintain economic resilience. However, the recently concluded U.S Presidential Elections 2024 may influence geopolitical risk and global trade dynamics, as well as potential shifts in monetary and fiscal policy.

As PROTON builds momentum with improved sales performance in the third quarter, the company is set to debut Malaysia's first electric vehicle ("EV"), known as Proton e.MAS 7. This SUV model equipped with advanced technology and sustainable features, marks a significant milestone toward Malaysia's green mobility aspirations. The Proton e.MAS 7 has been showcased to thousands of prospective buyers during a nationwide tour, with pre-bookings available in advance of its official launch by year-end. This new addition is set to further elevate PROTON's market presence, while reinforcing the Group's commitment towards sustainable innovation.

DRB-HICOM's strategic focus on digital transformation extends across multiple business sectors, including Banking and Postal sectors aimed to optimise operational efficiency. For other business sectors such as Aerospace and Defence, Services, and Properties, the Group remains committed to its strategy in strengthening business resilience and long-term stability.

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

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