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 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 operates. 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

Key Highlights  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 Group Financial and Airbus) with RM11.9 billion order book.  Honda Malaysia has become the #1 foreign automotive OEM in Malaysia with market share doubled from Performance 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. Despite the challenging market conditions, the Group proposed to pay a single tier first and final dividend of 2.00 Shareholder Value sen for the Financial Year Ended 31 March 2016, subject to shareholders’ approval. 3

Results Summary for the Financial Year Ended 31 March 2016 QoQ (%) 4Q15 3Q16 4Q16 FY15 FY16 YoY (%) 4Q16 vs 3Q16 (RM million) 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 (3,228.6) (3,415.6) (3,220.1) 5.7 (13,536.4) (12,980.9) 4.1 Operating Expenses (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) 4

Segmental Revenue (RM million) YoY: -11.1% 13,687.8 298.2 12,172.9 2,607.3 293.8 2,513.2 YoY: -18.0% PAC QoQ: -21.1% Services Automotive 10,782.3 9,365.9 3,336.0 3,209.8 2,632.8 55.1 60.3 110.8 623.3 600.8 620.9 2,657.6 2,548.7 1,901.1 4Q15 3Q16 4Q16 FY15 FY16 Note : PAC – Property, Asset & Construction 5

Segmental PBT (RM million) YoY: -263.7% YoY: -1,783.9% 501.8 72.1 QoQ: -408.7% (821.3) 294.5 PAC 19.5 44.2 Services (744.3) (146.3) 263.9 37.9 12.7 203.0 Automotive 42.9 55.3 41.3 10.7 (174.3) (5.1) (772.5) (953.6) 4Q15 3Q16 4Q16 FY15 FY16 Note: Total PBT figures include Investment Holding as tabulated below:- (RM million) 4Q15 3Q16 4Q16 FY15 FY16 Investment Holding (47.3) (22.2) (25.8) (67.8) (151.1) Note : PAC – Property, Asset & Construction 6

Automotive Segment Revenue YoY: -13.1% 10,782.3 9,365.9 5,758.6 FY16 Automotive Revenue Breakdown 4,787.3 YoY: -25.4% AD 16% QoQ: -28.5% AC 7% RM9.4 2,126.1 PROTON billion 2,463.2 51% 2,657.6 2,548.7 568.0 D&A 1,901.1 1,254.9 26% 1,313.9 674.7 934.9 2,329.6 536.4 806.2 438.2 1,440.7 155.7 152.5 207.2 542.7 444.0 320.8 4Q15 3Q16 4Q16 FY15 FY16 Automotive Distribution (AD) Automotive Component (AC) Defence & Aviation (D&A) PROTON 8

Marque Sales Performance (April 2015 to March 2016) Units 110,731 93,718 91,534 14,184 84,013 10,344 FY15 FY16 FY15 FY16 FY15 FY16 1,929 1,633 12,826 3,836 12,407 1,531 1,468 2,325 FY2015 FY2016 FY15 FY16 FY15 FY16 FY15 FY16 Source: MAA 8

DRB- HICOM’s Market Share Market Share FY2016 (April 2015 to March 2016) Others Total Industry Volume 66% 629,635 units DRB-HICOM 34% 213,327 units TIV Breakdown: National vs Non-National 44% PROTON 15% 43% 1% 1% Non-national National 53% 6% 32% 5% 9

Services Segment Revenue YoY: -3.6% (RM million) 2,607.3 2,513.2 83.0 FY16 Services 15.4 Revenue Breakdown 452.4 484.0 YoY: +3.3% Others 146.8 1% Logistic QoQ: -0.4% 19% 811.3 870.3 RM2.5 Banking 48% billion 623.3 620.9 600.8 Concession 4.6 4.7 6.7 32% 1,202.5 119.9 124.5 132.9 1,054.8 163.9 202.8 213.2 327.8 248.0 296.0 4Q15 3Q16 4Q16 FY15 FY16 Banking Concession Insurance Logistic Others Note: Others include DRB-HICOM University of Automotive Malaysia and Scott & English (Malaysia) 10

Services Revenue (RM million) 484.0 452.4 132.9 119.9 124.5 4Q15 3Q16 4Q16 FY15 FY16 * KLAS Group including Konsortium Logistik Berhad & DRB-HICOM ASIA Cargo Express. 724.7 678.0 177.6 167.1 137.2 4Q15 3Q16 4Q16 FY15 FY16 145.6 133.3 35.6 35.7 26.7 4Q15 3Q16 4Q16 FY15 FY16 11

PAC Segment Revenue (RM million) YoY: -1.5% FY16 PAC 298.2 293.8 Revenue Breakdown 14.8 8.9 48.5 YoY: +83.7% 69.5 Construction 3% QoQ: +101.1% Asset 24% RM293.8 110.8 million 234.9 0.3 215.4 32.4 60.3 55.1 Property 6.3 73% 11.0 12.9 78.1 43.0 42.2 4Q15 3Q16 4Q16 FY15 FY16 Property Asset Construction 12