4QFY2016 Financial Results Quarter Ended 31 March 2016 Disclaimer - - PowerPoint PPT Presentation
4QFY2016 Financial Results Quarter Ended 31 March 2016 Disclaimer - - PowerPoint PPT Presentation
4QFY2016 Financial Results Quarter Ended 31 March 2016 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
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
Group Financial Performance
- Recorded revenue of RM12.17 billion in FY2016 amid the challenging market conditions.
- Excluding PROTON, DRB-HICOM Group’s profitability performed marginally well for the financial year ended
31 March 2016. Bank Muamalat improved revenue by 14% to RM1.2 billion YoY. CTRM improved its overall businesses through new and extension of contracts with key clients (Boeing and Airbus) with RM11.9 billion order book. Honda Malaysia has become the #1 foreign automotive OEM in Malaysia with market share doubled from 7% in 2010 to 14% in 2015. KLAS Group recorded 7% growth YoY and on-track to create a holistic logistics player via consolidation of logistics business under POS Malaysia. Alam Flora improved profitability via its expansion on non-concession revenue. Achieved full-fledged university status for DRB-HICOM University of Automotive Malaysia (DHU).
- PROTON recorded huge losses in FY15/16 due to the followings:-
- FOREX volatility has largely affected PROTON’s operating cost.
- Higher finance cost and higher promotional expenses.
- Margin depletion from unfavourable model and variant mix.
- Stringent hire purchase financing and weaker consumer sentiment dampen the overall sales performance.
- Government of Malaysia in April 2016 had approved RM1.5 billion soft-loan to assist PROTON turnaround
plan and its expansion of domestic and international markets.
- Special task force had been established to ensure the success of PROTON led by PEMANDU, comprises of
representatives from Ministry of Finance, Ministry of International Trade and Industry, Economic Planning Unit and private sectors.
- New models to be launched in 2016: Perdana, Persona and Saga & new model in collaboration with Suzuki.
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Key Highlights
Shareholder Value
Despite the challenging market conditions, the Group proposed to pay a single tier first and final dividend of 2.00 sen for the Financial Year Ended 31 March 2016, subject to shareholders’ approval.
Results Summary for the Financial Year Ended 31 March 2016
(RM million)
4Q15 3Q16 4Q16 QoQ (%)
4Q16 vs 3Q16
FY15 FY16 YoY (%)
Operating Revenue 3,209.8 3,336.0 2,632.8 (21.1) 13,687.8 12,172.9 (11.1) Other Income 151.5 36.9 71.1 92.7 555.1 469.5 (15.4) Cost of Sales and Operating Expenses (3,228.6) (3,415.6) (3,220.1) 5.7 (13,536.4) (12,980.9) 4.1 (Loss)/Profit Before Tax 44.2 (146.3) (744.3) >(100) 501.8 (821.3) >(100) Non-Controlling Interest (0.3) 10.7 7.9 (26.2) 70.5 44.3 (37.2) EPS (sen) 4.64 (9.58) (40.90) >(100) 15.53 (51.31) > (100)
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Segmental Revenue
2,548.7 2,657.6 1,901.1 10,782.3 9,365.9 600.8 623.3 620.9 2,607.3 2,513.2 60.3 55.1 110.8 298.2 293.8 4Q15 3Q16 4Q16 FY15 FY16
PAC Services Automotive QoQ: -21.1%
(RM million)
YoY: -18.0% YoY: -11.1%
3,209.8 3,336.0 12,172.9 13,687.8 2,632.8
Note : PAC – Property, Asset & Construction
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Segmental PBT
10.7 (174.3) (772.5) 203.0 (953.6) 42.9 55.3 41.3 294.5 263.9 37.9 (5.1) 12.7 72.1 19.5 PAC Services Automotive
Note: Total PBT figures include Investment Holding as tabulated below:-
YoY: -1,783.9%
44.2 (146.3)
YoY: -263.7% QoQ: -408.7%
4Q15 3Q16 4Q16 FY15 FY16
(821.3) 501.8 (744.3)
(RM million)
(RM million) 4Q15 3Q16 4Q16 FY15 FY16 Investment Holding (47.3) (22.2) (25.8) (67.8) (151.1) Note : PAC – Property, Asset & Construction
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Automotive Segment
Revenue
8 542.7 444.0 320.8 2,329.6 1,440.7 155.7 152.5 207.2 568.0 674.7 536.4 806.2 438.2 2,126.1 2,463.2 1,313.9 1,254.9 934.9 5,758.6 4,787.3
4Q15 3Q16 4Q16 FY15 FY16 Automotive Distribution (AD) Automotive Component (AC) Defence & Aviation (D&A) PROTON QoQ: -28.5% YoY: -25.4% YoY: -13.1%
2,548.7 2,657.6 10,782.3 1,901.1 9,365.9
AD 16% AC 7% D&A 26% PROTON 51%
FY16 Automotive Revenue Breakdown RM9.4 billion
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Marque Sales Performance
Units
14,184 10,344 FY15 FY16 84,013 91,534 FY15 FY16 110,731 93,718 FY15 FY16 1,633 1,531 FY15 FY16 3,836 2,325 FY15 FY16 12,826 12,407 FY15 FY16 1,929 1,468 FY2015 FY2016
Source: MAA
(April 2015 to March 2016)
DRB-HICOM’s Market Share
Market Share FY2016 (April 2015 to March 2016)
629,635 units
Total Industry Volume
213,327 units
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TIV Breakdown: National vs Non-National
PROTON 15% National 32% Non-national 53% DRB-HICOM 34% Others 66% 1% 1% 6% 5% 43% 44%
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Services Segment
248.0 296.0 327.8 1,054.8 1,202.5 213.2 202.8 163.9 870.3 811.3 146.8 132.9 119.9 124.5 452.4 484.0 6.7 4.6 4.7 83.0 15.4 4Q15 3Q16 4Q16 FY15 FY16 Banking Concession Insurance Logistic Others
RM2.5 billion
(RM million)
QoQ: -0.4% YoY: +3.3%
Note: Others include DRB-HICOM University of Automotive Malaysia and Scott & English (Malaysia)
YoY: -3.6%
623.3 600.8 2,513.2 2,607.3 620.9
Banking 48% Concession 32% Logistic 19% Others 1%
FY16 Services Revenue Breakdown
Revenue
Services
Revenue
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(RM million)
* KLAS Group including Konsortium Logistik Berhad & DRB-HICOM ASIA Cargo Express.
132.9 119.9 124.5 452.4 484.0 4Q15 3Q16 4Q16 FY15 FY16 177.6 167.1 137.2 724.7 678.0 4Q15 3Q16 4Q16 FY15 FY16 35.6 35.7 26.7 145.6 133.3 4Q15 3Q16 4Q16 FY15 FY16
43.0 42.2 78.1 234.9 215.4 11.0 12.9 32.4 48.5 69.5 6.3 0.3 14.8 8.9 4Q15 3Q16 4Q16 FY15 FY16 Property Asset Construction 12
PAC Segment
Property 73% Asset 24% Construction 3%
FY16 PAC Revenue Breakdown
(RM million)
YoY: +83.7% QoQ: +101.1% YoY: -1.5%
Revenue
60.3 55.1 293.8 298.2 110.8
RM293.8 million
Financial Position and Key Ratios
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(RM billion) As at 31 Mar ‘16 As at 31 Mar’15 (Audited) Property, Plant & Equipment 5.7 5.6 Banking Related Assets 22.1 21.9 Inventories 1.8 2.4 Cash & Bank Balances 2.0 2.5 Trade & Other Receivables 4.6 4.7 Others 5.8 5.3 TOTAL ASSETS 42.0 42.4 Equity attributable to Owners of the Company 6.5 7.6 Perpetual Sukuk 1.1 0.8 Non-controlling Interest 0.9 1.0 Short Term Borrowings (include OD) 2.6 2.1 Long Term Borrowings 4.3 4.8 Banking Related Liabilities 19.6 19.4 Others 7.0 6.7 TOTAL EQUITY & LIABILITIES 42.0 42.4 As at 31 Mar‘16 As at 31 Mar’15 (Audited) Net Assets Per Share (RM) 3.38 3.92 Gearing Ratio (times):
- Gross
- Net
0.81 0.51 0.74 0.41 Return on Equity (%) (15.16) 3.97 Return on Capital Employed (%) (2.86) 5.50
2017 Outlook and Business Priorities
Turnaround Plan Group Synergies Unlocking Value of Assets New Growth Potential
- Under the support and close monitoring from Government, PROTON aim to complete the
Turnaround Plan within next 2 years.
- Key focus include:-
- Arrest sales decline through introduction of 3 new models in 2016 – Perdana, Persona and Saga
(with additional model through collaboration with Suzuki).
- Introduction of EVORA 400 and few new launches to accelerate Lotus turnaround plan and aim
to breakeven in FY2017/18.
- Strategic partnership to explore collaborative opportunities to improve products offerings and
time to market.
- Cost rationalisation and after-sales services improvement.
- Right-sized and competent Human Capital.
- New revenue streams through consolidation of logistics businesses between POS Malaysia, KL
Airport Services (KLAS), Konsortium Logistik Berhad (KLB) and DRB-HICOM Asia Cargo Express (DHACE) to create a holistic integrated logistics player and provide seamless end-to-end logisticss solutions.
- Expansion of business in Defence & Aviation sector.
- Consolidate existing businesses by improving fundamentals and create business resilience to
withstand economy headwinds.
- Key identified disposals for FY16/17 - The Verge shopping mall in Singapore.
- Substantial existing land bank of c.2,850 acres earmarked for developments and/or disposals.
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For enquiries, please contact us at:-
Investor Relations Level 5, Wisma DRB-HICOM
- No. 2 Jln Usahawan U1/8
40150 Shah Alam, Selangor Malaysia email : invest@drb-hicom.com tel : 603-2052 8194 / 8942 fax : 603-2052 8228