2QFY2020 Financial Results Quarter Ended 30 June 2020 Disclaimer - - PowerPoint PPT Presentation

2qfy2020 financial results quarter ended 30 june 2020
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2QFY2020 Financial Results Quarter Ended 30 June 2020 Disclaimer - - PowerPoint PPT Presentation

2QFY2020 Financial Results Quarter Ended 30 June 2020 Disclaimer This presentation is not and does not constitute an offer, invitation, solicitation or recommendation to subscribe for, or purchase, any securities and neither this presentation


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2QFY2020 Financial Results

Quarter Ended 30 June 2020

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Disclaimer

This presentation is not and does not constitute an offer, invitation, solicitation or recommendation to subscribe for, or purchase, any securities and neither this presentation nor anything contained in it shall form the basis of, or be relied on in connection with any contract or commitment or investment decision. This presentation has been prepared solely for use at this presentation. By your continued attendance at this presentation, you are deemed to have agreed and confirmed to DRB-HICOM Berhad (the “Company”) that: (a) you agree not to trade in any securities of the Company or its respective affiliates until the public disclosure of the information contained herein; and (b) you agree to maintain absolute confidentiality regarding the information disclosed in this presentation until the public disclosure of such information, or unless you have been otherwise notified by the Company. Reliance should not be placed on the information or opinions contained in this presentation or on its completeness. This presentation does not take into consideration the investment objectives, financial situation or particular needs of any particular investor. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. None of the Company and its affiliates and related bodies corporate, and their respective officers, directors, employees and agents disclaim any liability (including, without limitation, any liability arising from fault or negligence) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with it. This presentation contains projections and “forward-looking statements” relating to the Company’s business and the sectors in which the Company

  • perates. These forward-looking statements include statements relating to the Company’s performance. These statements reflect the current views of the

Company with respect to future events and are subject to certain risks, uncertainties and assumptions. It is important to note that actual results could differ materially from those anticipated in these forward looking statements. The Company does not undertake to inform you of any matters or information which may come to light or be brought to the Company’s attention after the date hereof. 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. This presentation may not be copied or otherwise reproduced without the written consent of DRB-HICOM Berhad. 2

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Due to the change in the financial year end from 31 March to 31 December, the current financial quarter/period ended 30 June 2020, being the second quarter of the financial year ending 31 December 2020 is not comparable with the second quarter of the previous financial period ended 31 December 2019.

Notice of Change in Financial Year End

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SLIDE 4

Share Price

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Key Highlights

For the Financial Period Ended 30 June 2020

RM 4,741.7 million

Revenue

RM (551.1) million

Loss Before Tax

RM 3.38

Shareholders’ equity : 6,532.1 million Ordinary shares : 1,933.2 million

Net Assets per Share Automotive Market Share

Jan – June 2020 DRB-HICOM : 59,866 units Malaysia TIV : 174,675 units

34%

Total Assets

RM 43.0 billion RM1.71

as at 30 June 2020

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172.2 Jan - June 2020 78.9 93.3 Apr - June 2020 Jan - Mar 2020 871.4 830.5 Apr - June 2020 Jan - Mar 2020 1,701.9 Jan - June 2020 4,741.8 Jan - June 2020 5

Revenue

For the Financial Period Ended 30 June 2020

  • Lower overall financial performance affected by the

economic slowdown aggravated by the on-going COVID-19 pandemic and various phases of MCO implementation

  • The Group’s performance was adversely affected by the

temporary shutdown of operations from April to mid-May 2020

  • Improved in Services sector largely due to increased demand
  • f courier volume boosted Postal & Logistics segment.

2,005.0 2,736.8 Apr - June 2020 Jan - Mar 2020 1,054.6 1,813.0 Apr - June 2020 Jan - Mar 2020

Group Revenue Group Revenue Breakdown by Sector

2,867.6 Jan - June 2020

Automotive Services Properties

(RM million) (RM million) (RM million) (RM million)

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(RM million) Apr – June 2020 Jan – Mar 2020 Jan – June 2020 Investment Holding (54.6) (51.4) (106.0)

(1.9) 8.3 Apr - June 2020 Jan - Mar 2020 6.4 Jan - June 2020 (4.1) (51.8) Apr - June 2020 Jan - Mar 2020 (55.9) Jan - June 2020 6

Group Profitability Group Profitability Breakdown by Sector

Automotive Services

(RM million) (RM million) (RM million)

(Loss) / Profit Before Tax

For the Financial Period Ended 30 June 2020

(RM million)

The Group recorded a pre-tax loss of RM551.1 million for the current financial period ended 30 June 2020 largely due to:  Lower Automotive sales volume due to business lockdown during MCO  Recognition of modification losses of RM60.6 million arising from the financing moratorium  Unrealised foreign exchange losses of RM52.3 million mainly from Automotive and Services companies  Impairment loss of RM54.6 million for certain property, plant and equipment

(395.6) Jan - June 2020 (305.2) (90.4) Apr - June 2020 Jan - Mar 2020

Total PBT/(LBT) include Investment Holding as below:

Properties

(365.8) (185.3) Apr - June 2020 Jan - Mar 2020 (551.1) Jan - June 2020

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2,068.7 Jan - June 2020 28.0 94.8 Apr - June 2020 Jan - Mar 2020 122.8 Jan - June 2020 798.7 1,270.0 Apr - June 2020 Jan - Mar 2020 134.0 317.2 Apr - June 2020 Jan - Mar 2020 1,054.6 1,813.0 Apr - June 2020 Jan - Mar 2020 224.9 Jan - June 2020 2,867.6 Jan - June 2020 7

Revenue Revenue Breakdown by Sector

(RM million) (RM million) (RM million)

Operational Highlights

Automotive

  • Lower sales volume particularly in the month of

April and May by PROTON and other marques within the Group in line with the drop in Total Industry Volume (“TIV”) by 41% Year-on-Year:  TIV Jan – June 2020 : 174,675 units  TIV Jan – June 2019 : 296,317 units

  • Automotive sales performance however, are

expected to improve in coming quarters, taking advantage of the sales tax exemption on the passenger car that will push consumer demand

93.9 131.0 Apr - June 2020 Jan - Mar 2020 451.2 Jan - June 2020

PROTON Defence & Aerospace Automotive Distribution (“AD”) Automotive Component (“AC”)

(RM million) (RM million)

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22 5,347 9,623 13,216 April May June July

Monthly Sales

PROTON Sales Continue to Rebound

4 PROTON Models Lead Respective Segment

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  • PROTON sales continued to rebound with the highest ever sales

recorded in July 2020 with 13,216 units sold, best month since June 2012

  • Four PROTON models achieved sales leadership in their respective

classes: 1) Saga (A-segment sedan) 2) X70 (Best-selling SUV in Malaysia) 3) Persona (B-segment sedan) 4) Exora (C-segment MPV)

  • PROTON will continue to excite the market with better product
  • fferings and new launches in the pipeline

DRB-HICOM Market Share : 34%

5% 4% 29% 62%

Source : MAA

59,866 units

(Jan – June 2020)

PROTON Best-Selling Models

units

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871.4 830.5 Apr - June 2020 Jan - Mar 2020 1,701.9 Jan - June 2020 27.4 31.9 Apr - June 2020 Jan - Mar 2020 581.9 527.4 Apr - June 2020 Jan - Mar 2020 1,109.3 Jan - June 2020 2.2 2.9 Apr - June 2020 Jan - Mar 2020 5.1 Jan - June 2020 9

Revenue Revenue Breakdown by Sector

(RM million) (RM million) (RM million) (RM million) (RM million)

Operational Highlights

Services

  • Improved overall Services performance on the back
  • f improvement in Postal & Logistics segment
  • Stronger demand from e-Commerce and online

marketplace amidst the MCO contributed positively to the courier business

  • Lower performance from banking however, as a

result of modification losses arising from loan moratorium in accordance with MFRS 9 Financial Instruments

259.9 268.3 Apr - June 2020 Jan - Mar 2020

Postal & Logistics Banking Concession Education

528.2 Jan - June 2020 59.3 Jan - June 2020

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Revenue

Operational Highlights

Properties

78.9 93.3 Apr - June 2020 Jan - Mar 2020 172.2 Jan - June 2020

  • Lower recognition from construction related projects (i.e. Media

City Development) which was impacted by the temporary closure of construction sites due to the imposition of MCO

  • The acquisition of remaining 49% shares in Media City Ventures

Sdn Bhd was completed on 5 June 2020, for cash consideration

  • f RM100 million

(RM million)

Media City Development Sdn Bhd Northern Gateway Infrastructure Sdn Bhd

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6.2 6.4 23.7 22.0 2.5 2.5 2.4 2.5 4.4 4.5 3.8 3.8 As at 30 June '20 As at 31 Dec '19 6.5 7.0 0.4 0.6 1.3 1.3 1.3 1.6 2.3 2.0 4.9 4.4 20.6 18.9 5.7 5.9 As at 30 June '20 As at 31 Dec '19

Equity attributable to Owners of the Company PERPS RCCPS NCI ST Borrowings (include OD) Long Term Borrowings Banking Related Liabilities Others

Balance Sheet Management

As at 30 June 2020

Banking Related Assets Cash & Bank Balances Trade & Other Receivables Inventories Others Property, Plant & Equipment

Note : RCCPS – Redeemable Cumulative Convertible Preference Shares : PERPS – Perpetual Sukuk : NCI – Non-Controlling Interest

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Total Assets Total Equity & Liabilities

(RM billion) (RM billion)

43.0 41.7 43.0 41.7

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55.9 55.9 55.9 55.9 55.9 9.3 10.5 9.4 9.2 9.1 9.3 7.7 7.3 8.6 9.5 2.6 1.5 1.5 2.0 2.4 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Etika Strategi Sdn Bhd Foreign Shareholders Employees Provident Fund Lembaga Tabung Haji

Key Shareholders of DRB-HICOM

As at 30 June 2020

(%)

77.1 75.6 74.1 75.7 76.9

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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 : invest@drb-hicom.com tel : +603 2052 8194 / 8942 fax : +603 2052 8228

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