FY2019 Financial Results Quarter Ended 31 December 2019 1 - PowerPoint PPT Presentation

FY2019 Financial Results Quarter Ended 31 December 2019 1

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

Notice of Change in Financial Year End The Board of Directors of DRB-HICOM Berhad (DRB-HICOM) has approved the change in the financial year end of DRB-HICOM from 31 March to 31 December. The financial statements of DRB-HICOM shall be for a period of nine (9) months from 1 April 2019 to 31 December 2019. For fair comparison, both FY2019 and FY2018/19 will consist of a period of 9 months as stated above. 3

Key Highlights For the Financial Period Ended 31 December 2019 Revenue Profit Before Tax Gross Gearing Ratio FY2019 FY2019 FY2019 RM 10,536.3m RM 472.5m 0.65x FY2018/19: RM 9,010.3m FY2018/19: RM(46.9)m FY2018/19: 0.59x 16.9% ↑ >100% ↑ 10.2% ↑ Market Earnings Per Share Return on Shareholders’ Equity (“ROE”) Capitalisation (EPS) FY2019 31 Dec 2019 FY2019 5.13% RM 4.6 bn 18.57 sen FY2018/19: (0.08)% 31 Dec 2018: RM 3.3 bn FY2018/19: (0.26) sen >100% ↑ 39.4% ↑ >100% ↑ Share price as at 31 Dec 2019 : RM2.38 Share price as at 31 Dec 2018 : RM1.70 4

Revenue For the Financial Period Ended 31 December 2019  The Group registered 16.9% improvement to RM10.5 billion for the nine months ended 31 December 2019 compared to RM9.0 billion recorded in the same period last year.  Improved performance of Automotive sector mainly from PROTON’s higher sales of vehicles offset the lower performance from Services and Properties sector. QoQ YoY (RM million) 16.9% 10.5% 2.5% 10,536.3 290.9 9,010.3 364.3 3,204.6 3,594.8 3,504.6 3,366.1 3,171.5 96.3 79.2 85.4 1,076.1 1,041.5 1,134.3 7,040.8 5,279.9 2,383.9 2,422.4 1,951.8 FY2019 FY2018/19 3QFY2019 2QFY2019 3QFY2018/19 Automotive Services Properties 5

Profit Before Tax (PBT) For the Financial Period Ended 31 December 2019  PBT YoY improved to RM472.5 million for the nine months period ended 31 December 2019 from pre-tax loss of RM46.9 million in 9MFY2018/19 mainly due to improved performance from Automotive segment.  The profits for the current quarter included the exceptional gain on disposal of Alam Flora Sdn. Bhd.  Unfavourable results of Services sector in 3QFY2019 largely due to continuous losses from Postal & Logistics segment and impairment loss of goodwill in certain subsidiary companies. QoQ YoY (RM million) (RM million) >100% > 100% 48.6% 472.5 131.0 50.4 (46.9) 96.7 35.1 194.7 124.9 25.0 71.5 342.2 112.0 108.2 63.3 179.5 0.9 (208.3) (326.7)* (275.1)* (1.9) 3QFY2019 2QFY2019 3QFY2018/19 FY2019 FY2018/19 Total PBT/(LBT) include Investment Holding as below: Total PBT/(LBT) include Investment Holding as below: (RM million) 3QFY2019 2QFY2019 3QFY2018/19 FY2019 FY2018/19 Investment Holding 415.1 (41.1) (39.0) 355.0 (143.0) Note : *inclusive of impairment loss on goodwill of RM318.2m Note : *inclusive of impairment loss on goodwill of RM318.2m 6 Automotive Services Properties

Balance Sheet Management As at 31 December 2019 Total Assets Total Equity & Liabilities RM41.7bn RM41.7bn 42.7 (RM billion) (RM billion) 42.7 41.7 41.7 6.6 4.7 Others 5.9 3.8 Others Trade & Other 4.3 4.5 Receivables Cash & 2.5 2.5 Bank Balances 2.8 2.5 Inventories Banking Related 19.2 18.9 Liabilities Banking Related Assets 22.0 22.3 Long Term 3.5 Borrowings 4.4 ST Borrowings 2.8 (include OD) 2.0 NCI 1.6 1.6 1.2 1.3 RCCPS 0.6 1.1 PERPS Equity attributable 7.0 6.7 Property, Plant 6.4 6.1 to Owners of the & Equipment Company As at 31 Dec '19 As at 31 Mar'19 As at 31 Dec '19 As at 31 Mar'19 Note : RCCPS – Redeemable Cumulative Convertible Preference Shares : PERPS – Perpetual Sukuk 7 : NCI – Non-Controlling Interest

Operational Highlights Automotive Revenue Sales Volume (Jan – Dec) 34% Market Share Units (RM million) Total Industry Volume 33.4% 22.1% (Jan to Dec 2019) 604,287 units 1.6% 100,183 102,282 85,418 7,040.9 64,744 202,788 units 475.2 2019 2018 2019 2018 514.7 5% 5,279.9 49% 4% 1,417.8 623.9 11,178 8,983 9,261 8,140 527.8 42% 2,422.4 2,383.9 2019 2018 2019 2018 Source: MAA 153.3 153.8 1,951.8 183.0 154.7 1,515.5 Commentaries 184.3 514.7 547.3 193.2  PROTON recorded sales improvement of 55.7% with 611.2 4,633.2 100,183 units sold in 2019 compared to 64,744 units in 2018. PROTON’s market share surged to 16.7% 1,560.7 1,538.8 2,612.7 (2018: 10.8%) with X70 continue to be the main top 963.1 selling model, apart from Saga and Persona.  Lower contribution from Defence segment due to 3QFY2019 2QFY2019 3QFY2018/19 FY2019 FY2018/19 lower percentage completion of AV8. PROTON Defence & Aerospace Automotive Component Automotive Distribution 8

Operational Highlights Services Revenue FY2019 Services Breakdown (RM million) Education 8.2% 4.8% Banking 3.2% 30% 3,366.1 3,204.6 RM3.2 Postal & 8.1 Logistics billion 8.3 50% 689.4 652.6 Concession 20% 984.6 1,134.3 943.1 1,076.1 1,041.5 2.8 3.1 2.5 243.5 179.6 240.0 Commentaries 330.1 328.9 309.9  Lower revenue recorded mainly due to the 1,684.0 1,600.6 following: 557.9  Postal & Logistics – continuous structural 530.5 523.1 decline in traditional mail volume due to digital substitution 3QFY2019 2QFY2019 3QFY2018/19 FY2019 FY2018/19  De-consolidation of Alam Flora Sdn. Bhd. as Postal & Logistics Banking Concession Education of 30 November 2019 9

Operational Highlights Properties Revenue Property Concession NORTHERN GATEWAY INFRASTRUCTURE SDN BHD (RM million) 7.3% 20.2% 17.7% MEDIA CITY DEVELOPMENT SDN BHD 364.3 290.9 Commentaries 96.3 85.4 79.2  Lower recognition from construction related projects mainly from Media City Development and 3QFY2019 2QFY2019 3QFY2018/19 FY2019 FY2018/19 Northern Gateway Infrastructure 10