DRB-HICOM 2018 - MalaysiaStock.Biz
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HIGHLIGHTS PERSPECTIVE
002
007
Notice of Annual General Meeting
Statement Accompanying the Notice
of Annual General Meeting
32 080
082
Chairman’s Foreword
Management Discussion
and Analysis (MD&A)
CO R P O R AT E 092 Automotive Sector
DISCLOSURE
“BY STRIVING TO BE 104 Services Sector
008 Vision and Mission AT THE FOREFRONT
IN ALL THAT WE DO,
110 Properties Sector
010 Corporate Profile WE CONTINUE TO
LEAD”
K E Y I N I T I AT I V E S
014 Calendar of Events
114 Sustainability Report
020 Financial Calendar
46
FINANCIAL
021 Corporate Information S TAT E M E N T S
022 Group Corporate Structure 162 Directors’ Report
024 Investor Relations 169 Statements of Comprehensive
Income
PERFORMANCE
REVIEW “IN THE FACE OF 171 Consolidated Statement
ANY OBSTACLE, of Financial Position
030 Group 5 Years Financial Highlights WE MUST RISE TO
THE OCCASION” 173 Company Statement
LEADERSHIP of Financial Position
034 Profile of Directors 174 Consolidated Statement
of Changes in Equity
158
040 Profile of Key Senior Management
178 Company Statement
043 Profile of Key Senior Management of Changes in Equity
of Principal Subsidiaries
179 Statements of Cash Flows
044 Management Team
186 Notes to the Financial Statements
ACCO U N TA B I L I T Y
048 Corporate Governance “OUR TRIUMPHS 367 Statement by Directors
Overview Statement INSPIRE US AND
TEACH US TO BE 367 Statutory Declaration
058 Directors’ Statement on Risk BETTER”
Management and Internal Control 368 Independent Auditors’ Report
064 Board Audit Committee Report R E L AT E D
I N F O R M AT I O N
070 Additional Compliance Information 380 Analysis of Shareholdings
072 Statement of Directors’ 384 Share Performance Chart
Responsibility
385 Material Properties
074 Risk Management of DRB-HICOM Group
Form of Proxy
DRB-HICOM Annual Report
BERHAD 2018
The
Announcement Notice of
Annual General
Meeting
Notice is hereby given that
the 28th Annual General Meeting (“28th AGM”) of DRB-HICOM Berhad (“the
Company”) will be held at Glenmarie Ballroom, Holiday Inn Kuala Lumpur
Glenmarie, No. 1, Jalan Usahawan U1/8, Seksyen U1, 40250 Shah Alam,
Selangor Darul Ehsan on Thursday, 30 August 2018 at 9.00 a.m. for the purpose
of transacting the following businesses:
ORDINARY
1
To receive the Audited Financial Statements for the financial year ended 31 March 2018 together
BUSINESS with the Reports of the Directors and Auditors thereon.
Please refer to Explanatory Note A
2
To approve the declaration of a single tier first and final dividend of 3.0 sen per share in respect
of the financial year ended 31 March 2018. (Resolution 1)
Please refer to Explanatory Note B
3
To re-elect the following Directors who retire by rotation in accordance with Article 79 of the
Company’s Constitution and who being eligible, offered themselves for re-election:
(i) Dato’ Sri Syed Faisal Albar bin Syed A.R. Albar (Resolution 2)
(ii) Dato’ Siti Fatimah binti Daud (Resolution 3)
Please refer to Explanatory Note C
4
To re-elect the following Directors who retire in accordance with Article 85 of the Company’s
Constitution and who being eligible, offered themselves for re-election:
(i) Dato’ Mohammad Zainal bin Shaari (Resolution 4)
(ii) Tee Beng Thong (Resolution 5)
(iii) Sharifah Sofia binti Syed Mokhtar Shah (Resolution 6)
Please refer to Explanatory Note D
2
DRB-HICOM Annual Report
BERHAD 2018
SPECIAL BUSINESS
5
To approve the payment of Directors’ fees up to an To consider and if thought fit, to pass the following Ordinary
amount of RM1,450,000.00 to the Non-Executive Resolution, with or without any modifications:
Directors from the conclusion of the 28th AGM until
8
Continuation in office as Independent Non-Executive Director
the next Annual General Meeting. (Resolution 7)
Please refer to Explanatory Note E
“THAT approval be and is hereby given to Datuk Ooi Teik Huat, who has
6
To approve the payment of benefits payable (excluding served as an Independent Non-Executive Director of the Company for
Directors’ fees) up to an amount of RM338,500.00 a cumulative term of more than nine (9) years, to continue to act as
to the Non-Executive Directors’ from the conclusion the Senior Independent Non-Executive Director of the Company until
of the 28th AGM until the next Annual General the conclusion of the next Annual General Meeting.” (Resolution 10)
Meeting. (Resolution 8) Please refer to Explanatory Note H
Please refer to Explanatory Note F
7 9
To re-appoint Messrs Ernst & Young as Auditors of the To transact any other business of which due notice shall have been
Company for the financial year ending 31 March 2019 given in accordance with the Companies Act 2016 and the Company’s
and to authorise the Board of Directors to fix their Constitution.
remuneration. (Resolution 9)
Please refer to Explanatory Note G
NOTICE OF DIVIDEND ENTITLEMENT
AND PAYMENT
NOTICE IS ALSO HEREBY GIVEN THAT the single tier first and final dividend of 3.0
sen per share in respect of the financial year ended 31 March 2018, if approved
by the shareholders at the 28th AGM, will be paid on 1 October 2018 to the
shareholders whose names appear in the Record of Depositors of the Company
at the close of business on 13 September 2018.
A depositor shall qualify for entitlement to the dividend only in respect of:
A
shares deposited into the depositor’s securities account before
12.30 p.m. on 7 September 2018 in respect of shares which are BY ORDER OF THE BOARD
exempted from mandatory deposit;
SABARINA LAILA MOHD HASHIM (LS0004324)
B
shares transferred into the depositor’s securities account before Company Secretary
4.00 p.m. on 13 September 2018 in respect of ordinary transfers;
and Shah Alam, Selangor Darul Ehsan
31 July 2018
C
shares bought on Bursa Malaysia Securities Berhad on a cum entitlement
basis according to the Rules of Bursa Malaysia Securities Berhad.
3
DRB-HICOM Annual Report
BERHAD 2018
NOTES TO THE NOTICE OF
ANNUAL GENERAL MEETING
1. Proxy and Authorised Representative
(a) A member entitled to attend the meeting may (48) hours before the time set for holding this
appoint not more than two (2) proxies who may meeting or adjourned meeting, or in the case
but need not be a member of the Company. of a poll, not less than twenty-four (24) hours
before the time appointed for the taking of a
(b) Where a member of the Company is an poll, and in default the instrument of proxy
authorised nominee, as defined under the shall not be treated as valid.
Securities Industry (Central Depositories)
Act 1991, it may appoint not more than two 2. Voting by Poll
(2) proxies in respect of each securities
account it holds to which ordinary shares Pursuant to Paragraph 8.29A(1) of the Main Market
in the Company are credited. Listing Requirements of Bursa Malaysia Securities
Berhad, all resolutions set out in this Notice will
(c) For an exempt authorised nominee which holds be put to vote by way of poll.
ordinary shares in the Company for multiple
beneficial owners in one (1) securities 3. Members entitled to attend
account (omnibus account), there is no limit
to the number of proxies which the exempt For the purpose of determining a member who shall
authorised nominee may appoint in respect of be entitled to attend the 28th AGM, the Company shall
each omnibus account it holds. be requesting Bursa Malaysia Depository Sdn. Bhd.
to issue a General Meeting Record of Depositors as at
(d) The instrument appointing a proxy shall be in 24 August 2018. Only a depositor whose name appears
writing under the hand of the appointor or his therein shall be entitled to attend the 28th AGM or
attorney duly authorised in writing or, if the appoint a proxy(ies) to attend and vote on such
appointor is a corporation, either under its depositor’s behalf.
common seal or under the hand of an officer or
attorney duly authorised in writing. 4. Explanatory Note A
- Audited Financial Statements
(e) Where a member/an authorised nominee/an
exempt authorised nominee appoints This agenda item is meant for discussion only as the
proxies, the proportion of shareholdings to be provision of Section 340(1)(a) of the Companies
represented by each proxy must be specified Act 2016 (“Act”) does not require the Audited Financial
in the instrument appointing the proxies. Statements to be formally approved by the shareholders.
If the form of proxy is returned without an Hence, this item is not put forward for voting.
indication as to how the proxy shall vote on
any particular matter, the proxy may
5. Explanatory Note B
exercise his/her discretion as to whether
to vote on such matter and if so, how. - Single tier first and final dividend
(f) A proxy appointed to attend and vote at the In accordance with Article 125 of the Company’s
meeting shall have the same rights as Constitution, the Board is recommending that the
the member to speak at the meeting. The shareholders approve the payment of a single
lodging of a form of proxy does not preclude a tier first and final dividend.
member from attending and voting in person
at the meeting should the member subsequently With reference to Section 131 of the Act, a company
decide to do so. may only make a distribution to the shareholders out
of available profits if the company is solvent.
(g) The instrument appointing a proxy together On 31 May 2018, the Board of Directors’ of
with the power of attorney or other authority, DRB-HICOM (“the Board”) had considered the
if any, under which it is signed or a certified amount of dividend and decided to recommend
copy thereof, shall be deposited at the office the same for shareholders’ approval.
of the Share Registrar, Symphony Share
Registrars Sdn. Bhd., Level 6, Symphony House, The Board is satisfied that the Company will be solvent
Pusat Dagangan Dana 1, Jalan PJU 1A/46, as it will be able to pay its debts as and when the
47301 Petaling Jaya, Selangor Darul Ehsan debts become due within 12 months immediately
(Tel: +603-7849 0777) not less than forty-eight
4
DRB-HICOM Annual Report
BERHAD 2018
7. Explanatory Notes E and F
after the distribution date which would be announced - Directors’ fees and benefits
by the Company after the AGM in accordance with
Sections 132(2) and (3) of the Act. Section 230(1) of the Act provides that the fees
of the directors and any benefits payable to the
6. Explanatory Notes C and D directors of a listed company and its subsidiaries
- Re-election of Directors shall be approved at a general meeting. For the
financial year ending 31 March 2019, the Board
The Directors who are subject to re-election at decided that the Directors’ fee be maintained
the 28 th AGM of the Company are as follows: as the previous financial year for each Director.
Accordingly, the Company is seeking the
(a) Article 79 - Retirement by rotation shareholders’ approval at the 28 th AGM on the
(i) Dato’ Sri Syed Faisal Albar bin following resolutions:
Syed A.R. Albar
(ii) Dato’ Siti Fatimah binti Daud (a) Resolution 7 - Payment of Directors’ fees up to
an amount of RM1,450,000.00 to the Non-
Article 79 of the Company’s Constitution Executive Directors from the conclusion of
provides that one-third (1/3) or the number the 28 th AGM on 30 August 2018 until the next
nearest to one-third (1/3) of the Directors for AGM of the Company to be held by September
the time being, shall retire from office so that 2019 pursuant to the Act as follows:
all the Directors shall retire from office at least
once in every three (3) years (“retirement by (i) Payment made by the Company amounting
rotation”) and shall be eligible for re-election. to RM864,000.00; and
(ii) Payment made by the Company’s Subsidiaries
(b) Article 85 - Retirement by casual vacancy amounting to RM586,000.00
(i) Dato’ Mohammad Zainal bin Shaari
(Appointed on 13 April 2018) (b) Resolution 8 - Payment of benefits (excluding
(ii) Tee Beng Thong Directors’ fees) payable up to the amount of
(Appointed on 1 December 2017) RM338,500.00 to the Non-Executive Directors
(iii) Sharifah Sofia binti Syed Mokhtar Shah from the conclusion of the 28th AGM on
(Appointed on 13 April 2018) 30 August 2018 until the next AGM of the
Company to be held by September 2019
Article 85 of the Company’s Constitution pursuant to the Act as follows:
provides that any Directors appointed during
the year shall hold office only until the next (i) Payment made by the Company
AGM, and shall then be eligible for re-election amounting to RM190,500.00; and
(“casual vacancy”). (ii) Payment made by the Company’s Subsidiaries
amounting to RM148,000.00
All Directors standing for re-election as Directors
and being eligible, have offered themselves for The proposed Resolutions 7 and 8, if passed,
re-election at the 28 th AGM of the Company. will give authority to the Company to pay the
Directors’ fees and benefits on a quarterly/monthly
The Board has conducted an assessment on the basis and/or as and when incurred based on
independence of the Independent Directors who are the present Directors’ fees and benefits structure,
seeking re-election and is of the opinion that the since the Non-Executive Chairman and the
Directors meet the independence criteria and has Non-Executive Directors have discharged their
recommended for the shareholders’ approval at the responsibilities and rendered their services to
28 th AGM of the Company. the Company and its subsidiaries throughout
the period.
5
DRB-HICOM Annual Report
BERHAD 2018
8. Explanatory Note G
- Re-appointment of Auditors
The Board through the Board Audit Commitee The Board is recommending to the shareholders
undertook an annual assessment of the suitability for Datuk Ooi Teik Huat, who has served as
and independence of the external auditors, Messrs an Independent Non-Executive Director of
Ernst & Young (“EY”) as recommended in Practice the Company for a cumulative term of 9 years
8.3 of the Malaysian Code on Corporate Governance and 9 months, to continue to act as the Senior
(“MCCG”). Independent Director of the Company. The Board
through the Board Nomination and Remuneration
Based on the annual assessment, the Board is Committee had assessed and endorsed that Datuk
satisfied that EY is suitably qualified for Ooi Teik Huat be retained as the Senior Independent
re-appointment as Auditors of the Company and Director of the Company as he has displayed high
is seeking the shareholders’ approval to re-appoint level of integrity and is objective in his judgement
EY at the 28 th AGM of the Company. and decision making in the best interest of the
Company, shareholders and stakeholders and
9. Explanatory Note H is able to express unbiased views without any
- Continuation in office as Independent influence. The detailed justifications of the Board
for making such recommendation are set out in
Non-Executive Director
the Corporate Governance Report of the Company
which is available on the Company’s website at
Practice 4.2 of the MCCG and the Board Charter
www.drb-hicom.com.
of the Company provide that shareholders’
approval be sought in the event that the Company
The shareholders’ approval for Ordinary Resolution
intends for an independent director who has
10 will be sought on a single tier voting basis.
served in that capacity cumulatively more than
nine (9) years to continue to act as Independent
Director of the Company.
6
DRB-HICOM Annual Report
BERHAD 2018
Statement
Accompanying the Notice of Annual General Meeting
(Pursuant to Paragraph 8.27(2) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad)
i. The profile of the Directors who are due for retirement and seeking for re-election pursuant to the Company’s
Constitution are as set out in pages 34 to 38 of this Annual Report.
ii. The details of the Directors’ interests in the securities of the Company as at 31 March 2018 are set out in pages
162 to 168 of this Annual Report.
7
DRB-HICOM Annual Report
BERHAD 2018
108 YEARS One Of The Nation’s
LARGEST
Incorporated In And Most
1910 DIVERSE
3
Conglomerates
CORE
SECTORS
Automotive
Services
Properties
Vision
To be number 1 and to
continuously excel in all
that we do
Mission
To lead in the growth of
the nation in the areas of
DRB-HICOM’s core
businesses
8DRB-HICOM Annual Report
BERHAD 2018
Provides
Employment
For An Estimated
56,000
People
OWNS
OVER70
Operating
Companies
Shared Values
Excellence
Decorum
Teamwork
Integrity
Innovation
Quality
Transparency
9DRB-HICOM Annual Report
BERHAD 2018
Who We Are
Corporate Profile
History of DRB-HICOM
HICOM Holdings Berhad (“HHB”) traces its beginnings back to 1910, when it was
initially incorporated as an investment holding company, The New Serendah
Rubber Company Limited (“TNSRC”), involved primarily in cultivating rubber
and palm oil in four estates: Serendah and Connemara estates in Selangor, Bukit
Keledek estate in Negeri Sembilan and Asahi estate in Johor. In December 1993,
the company changed its name to HICOM Holdings Berhad (“HHB”) and acquired
the entire issued and paid-up share capital of HICOM Berhad (from the Ministry
of Finance) and its employees via a corporate restructuring exercise.
HICOM BERHAD
HICOM Berhad (“HICOM”) itself was included manufacturing of non-national
incorporated on 27 November 1980 motorcycles, general purpose engines,
under the name of The Heavy Industries foundry works and machining, diecasting,
Corporation of Malaysia Berhad – and industrial estates including golf resort
it was established as an investment development and even cement production.
holding company principally engaged in
the identification, initiation, planning, In 1991, its name was changed to HICOM
implementation and management of Berhad. At that time, it was 95.8% owned
projects in the field of heavy industries. by the Malaysian Government with
Since its inception, HICOM has been the remaining shares held by HICOM’s
instrumental in leading the nation’s employees via the Employees’ Share
drive towards industrialisation. Among Option Scheme.
its major achievements was the
development of the National Car Project
via Perusahaan Otomobil Nasional Sdn.
Bhd. (“PONSB”). Other strategic projects
10DRB-HICOM Annual Report
BERHAD 2018
MERGER In 2010, the Group added car rental and
leasing services to the portfolio under the
DRB merged with HICOM in 1996, following internationally acclaimed car rental brand,
a series of restructuring and rationalisation Avis.
exercises of several companies within the
Group. The newly structured company The Group owns the national car brand,
formed a diversified group with interests PROTON, which has undergone a turnaround
ranging from the assembly, manufacturing resulting in the entry of Zhejiang Geely
and distribution of motor vehicles, trading Holding Group Co., Ltd. (“Geely”), a
in spare parts to property development. leading global automotive manufacturer
DRB-HICOM assumed its present name on based in China, as its strategic foreign
11 May 2000. partner. A Definitive Agreement was
signed on 23 June 2017 for Geely Holding
to take 49.9% equity in PROTON Holdings
DRB-HICOM Today Berhad.
Today, we are one of the largest PROTON has manufacturing plants in
conglomerates in Malaysia with a market Shah Alam, Selangor and Tanjung Malim,
capitalisation of RM2.707 billion, and an Perak with production capacities of
estimated 56,000 employees globally, 230,000 and 200,000 vehicles per annum
engaged principally in the Automotive, respectively. I t a l s o o w n s o n e o f t h e
Services and Properties businesses. b i g g e s t sheet-metal stamping plants in
Southeast Asia, located at the Glenmarie
DRB-HICOM (or the Group) has experienced industrial zone. In addition, the Group
extensive growth since the millennial owns a world-class manufacturing and
merger to become the only corporation assembly complex in Pekan, Pahang with
in the country involved in the entire a production capacity of 100,000 vehicles
automotive value ecosystem, as well as a y e a r, w h i c h i n c l u d e Mercedes-Benz,
the only organisation nationwide that Volkswagen, Isuzu, FUSO, MB Actros,
provides end-to-end logistics services, Suzuki, SsangYong and Tata models. DRB-
DIVERSIFIED RESOURCES Islamic banking, vehicle inspection, HICOM also manufactures and assembles
BERHAD waste m a n a g e m e n t a n d a u t o m o t i v e Malaysian and international motorcycle
industry-related tertiary education models at its plant in Gurun, Kedah. These
Diversified Resources Berhad (“DRB”) including vocational training. In the include the national motorcycle brand
was initially incorporated on 28 August property market, we have built a strong MODENAS, KYMCO from Taiwan and Bajaj
1990 as a private limited company under reputation for quality developments under from India.
the name of Peerless Assets Sdn. Bhd. On the Glenmarie brand, and are now focused
3 August 1991, it changed its name to on the development of industrial parks. Supporting its own assembly and
Peerless Assets Berhad upon its conversion manufacturing lines as well as those
into a public company, and then again DRB DRB-HICOM’s automotive expertise lies of other local and international car
on 19 September 1991. On 4 September in manufacturing, assembly, inspection, manufacturers are 12 (twelve) Tier One
1992, DRB was listed on the main board of distribution, sales and after-sales service vendors that produce original equipment
KLSE. for private and commercial vehicles, manufacturer (“OEM”) parts. Together,
motorcycles, defence vehicles and also these vendors ensure the Group’s
customised vehicles such as buses, ability to cater to any complex
police vehicles and garbage compactors. precision-engineering needs.
11DRB-HICOM Annual Report
BERHAD 2018
DRB-HICOM has 13 companies under its banner that assemble/manufacture a n d d i s t r i b u t e v a r i o u s l o c a l
a n d foreign-manufactured motorcycles, cars and speciality vehicles, and provide after-sales service, as well as
offering logistics and leasing services. Among the marques that are assembled and subsequently distributed
are Honda, Mitsubishi and Isuzu. The Group is also an authorised dealer for, among others, Audi, Volkswagen,
Mitsubishi and Isuzu vehicles, and has exclusive distributorship rights in Malaysia for Tata vehicles and Jeep
sport utility vehicles (“SUVs”).
The Group has made a name for itself and-non-aerospace, general aviation and Services Sdn. Bhd. (“DHES”), provides
in the defence sector through defence industries. integrated waste management focused on
DRB-HICOM Defence Technologies recycling as well as efficient energy and
Sdn. Bhd. (“DEFTECH”), which has DRB-HICOM’s logistics business comprises water consumption in buildings.
set the bar in designing, developing, Pos Malaysia Berhad ("Pos Malaysia")
manufacturing and supplying armoured Group which, apart from Pos Malaysia, Vehicle inspection is carried out by
and logistics vehicles for domestic includes Pos Aviation Sdn. Bhd., Pos PUSPAKOM Sdn. Bhd., the sole commercial
and foreign military and homeland Logistics Berhad and Pos Asia Cargo vehicle inspection company in Malaysia.
security use, in addition to providing Express Sdn. Bhd. as well as DRB-HICOM In addition to its core business that falls
customised vehicles for hospitals, and Auto Solutions Sdn. Bhd. (“DHAS”). Through under a concession with the Government,
other commercial transportation vehicles. these two groups of companies, the Group PUSPAKOM has expanded its service
boasts a total of 1.78 million square feet offerings to include Hire Purchase
In November 2013, DRB-HICOM acquired of warehousing capacity and two Boeing Inspection (“HPI”) and Voluntary Vehicle
Composites Technology Research Malaysia 737-400 freighters for cargo transport. Inspection (“VVI”).
Sdn. Bhd. (“CTRM”) from the Ministry The Group’s consolidation of logistics
of Finance Incorporated, which marked operations under Pos Malaysia (excluding Bank Muamalat Malaysia Berhad (“Bank
the Group’s entry into the aerospace DHAS) serves to enhance synergies, Muamalat”) completes the Services
manufacturing industry. The company has allowing it to increase its presence in the portfolio, with the provision of Islamic
established itself as a centre of excellence ever-growing e-Commerce sector. banking products and services to the
for composite aerostructures, supplying community regardless of race or religious
top global aerospace companies and Solid waste management services beliefs. Established in 1999 from the
aircraft manufacturers including Airbus are provided by Alam Flora Sdn. Bhd., merger of Bank Bumiputra Malaysia
and Boeing. CTRM is the only company the country’s leading environmental Berhad, Bank of Commerce Berhad and
in Asia with 12 autoclaves housed under management company, currently serving BBMB Kewangan, it has the distinction of
a single plant, located in Batu Berendam, 13 local authorities. Dedicated to helping being the second full-fledged Islamic bank
Melaka. Together with two other communities manage and reduce waste in Malaysia. Bank Muamalat operates 62
subsidiaries, CTRM’s expertise spans with minimal environmental impact, its branches across the country.
the commercial and military aerospace- subsidiary, DRB-HICOM Environmental
12DRB-HICOM Annual Report
BERHAD 2018
“DRB-HICOM's logistics business
comprises Pos Malaysia,
Pos Aviation, Pos Logistics,
Pos Asia Cargo Express, as well as
DRB-HICOM Auto Solutions."
The Group’s Education division caters Lumpur Glenmarie, Vivanta by Taj in Development Corporation Sdn. Bhd. In
specifically to the human capital needs of Langkawi, and Glenmarie Golf and Country addition, DRB-HICOM is developing Media
the automotive industry, primarily through Club, in Shah Alam. City in Kuala Lumpur and the Integrated
DRB-HICOM University of Automotive Immigration, Customs, Quarantine and
Malaysia (“DRB-HICOM University”) located In March 2018, however, the Group made Security complex in Bukit Kayu Hitam,
in Pekan, and Akademi Saga, in Shah Alam, the strategic decision to divest its Kedah through its 51% equity in Media
Selangor. DRB-HICOM University, now in non-industrial property assets and entire City Ventures Sdn. Bhd. and wholly-
its eighth year, is the o n l y un i ve rsi t y i n hospitality portfolio in order to streamline owned subsidiary, Northern Gateway
ASEAN to offer home-grown Bachelor’s, this core business. In return, the Group Infrastructure Sdn. Bhd., respectively.
Master’s and Doctoral programmes relating will acquire additional 1,243.45 acres
to the automotive ecosystem, in addition of industrial land in Johor, bringing its
to business and management courses industrial land bank to 1,800 acres. Among
such as finance and accounting. Akademi the significant industrial areas developed
Saga, established in 1991, supports the by DRB-HICOM include HICOM Industrial
needs of PROTON and other players in Estate and Glenmarie Industrial Park in
the automotive sector with a full range of Shah Alam, and HICOM Pegoh Industrial
diplomas, certificates and short courses Park in Alor Gajah, Melaka. Recently, the
related to automotive mechanics. Group launched the National Automotive
Cluster @ Proton City (“NAC”), which will
In the property market, DRB-HICOM is house the entire manufacturing operations
renowned for the development of residential, of PROTON by 2022.
commercial, industrial, hospitality and
integrated township projects. It also owned Proton City is a 4,000-acre township
and managed hospitality and leisure in Muallim, Perak, being developed by
properties, namely the Holiday Inn Kuala wholly-owned subsidiary, Proton City
13DRB-HICOM Annual Report
BERHAD 2018
All That Happened
Calendar
of Events Last Year
2017-2018 APRIL 2017
06 06 08
MOU SIGNING CEREMONY WITH MODENAS LAUNCHES KRISS MR2 DRB-HICOM ANNUAL DINNER
SEGI UNIVERSITY
MODENAS made a strong comeback into the More than 600 Warga DRB-HICOM and spouses
DRB-HICOM along with eight other organisations underbone and scooter market, with the launch of were celebrated at the ‘Let’s Rock The Night’
signed a Memorandum of Understanding to the Modenas Kriss MR2 by Dato’ Abdul Harith bin themed dinner. Warga DRB-HICOM were
launch an initiative to boost employability among Abdullah. Kriss MR2 replaces the Kriss MR1, which entertained by special guests, ‘The One’ band that
graduates by providing financial support, academic was launched back in 2011. comprises DRB-HICOM Management Members and
programmes, training and talent management. Malaysia’s one and only Papa Rock, Ramli Sarip.
MAY 2017
06 13 14
MAJLIS ANUGERAH PELAJAR CEMERLANG DRB-HICOM ICC/HCDP CONVENTION JOM KAYUH MESRA ALAM BY BANK
2016 MUAMALAT & PROTON
18 teams and 14 subsidiaries competed in 3
A total of 209 children of Warga DRB-HICOM categories namely, ICC, HCDP Green Belt and About 1,500 environmentally aware, health
HCDP Black Belt whilst another 12 finalist teams
received their scrolls and reward from the Group conscious and cycling enthusiastic Malaysians
showcased their improvement projects and another
Managing Director, Dato’ Sri Syed Faisal Albar joined the inaugural event. The first category
6 ICC teams presented through exhibitions. The
bin Syed A.R. Albar. They were awarded for their conference was part of the Group’s efforts to (30km) was flagged off at 8.00 am while the
excellence in achieving good results in their PT3 continuously promote best business practices by second category (15km) was flagged off a little
(162 students), SPM (162 students) and STPM (4 improving production and management processes later. The event highlighted the pristine scenery of
students). by enhancing employee skills and morale. Proton City in Tanjung Malim.
14DRB-HICOM Annual Report
BERHAD 2018
MAY 2017
15 19 20
MEDIA VISIT TO CTRM PLANT, MELAKA MODENAS LAUNCHES PULSAR & V15 DRB-HICOM AUTO FEST 2017
20 members of the media joined the visit organised MODENAS in collaboration with Bajaj Auto Ltd. The seventh edition of DRB-HICOM Autofest was
by CTRM and its strategic partner, Airbus. The launched three variants of street bikes, Pulsar held in conjunction with the Hari Raya celebrations.
objective of the visit was to present an overview NS200, RS200 and the V15. 10 automotive brands and other non-automotive
of Malaysia’s capability in composite-parts companies of DRB-HICOM participated. The
manufacturing and showcased CTRM’s role in the attractions included the preview of the Modenas
international aerospace manufacturing ecosystem. Pulsar, the V15 and the RS200. The event attracted
more than 7,000 visitors from Klang Valley.
MAY 2017 JUNE 2017
23 02 17
ISUZU LAUNCHES PADANG JAWA BRANCH ZIARAH RAMADHAN IFTAR DRB-HICOM
ISUZU Malaysia established a new flagship after- DRB-HICOM reached out to more than 120 Over 800 Warga DRB-HICOM and their family
sales facility offering ISUZU owners and users with underprivileged families in Gurun and Warga members attended the annual iftar gathering.
higher levels of proficiency and timely vehicle care. MODENAS in Kedah, each receiving a box of daily Warga DRB-HICOM thoroughly enjoyed the
The new facility houses the ISUZU Technical Centre. necessities and Duit Raya. A total of 25 Sahabat delicious Ramadhan buffet spread and the
DRB-HICOM lent their hands to the effort. opportunity to mingle with the management.
15DRB-HICOM Annual Report
BERHAD 2018
JUNE 2017 JULY 2017
23 14 17
SIGNING CEREMONY BETWEEN SAMBUTAN AIDILFITRI DRB-HICOM HICOM AUTOMOTIVE LAUNCHES
DRB-HICOM & ZHEJIANG GEELY BERSAMA ANAK-ANAK YATIM DAN ASNAF NEW PAINT SHOP
DRB-HICOM Berhad reached an agreement with Aidilfitri was spent with 73 children from Sekolah HICOM Automotive Manufacturers launched its
China – based Zhejiang Geely Holding Group Co., Kebangsaan Bangsar, Kuala Lumpur where 24 high-tech paint shop as part of the company’s effort
Ltd ("Geely") for the Chinese car group to acquire Sahabat DRB-HICOM hosted the children. The to strengthen its foothold as one of the preferred
49.9% equity in PROTON Holdings Berhad. The event with was held in Café UAK in Glenmarie automotive assemblers in the region. The facility
deal will enable PROTON to tap into Geely which started off with a motivational talk by Ustaz will allow them to increase their production capacity
Holding’s vast range of platforms and powertrains, Abdullah Khairi and followed by a feast. from 25,000 units to 50,000 units annually.
and will also enable PROTON to have access to
existing markets of the Chinese carmaker, as well
as right-hand drive markets in Southeast Asia.
JULY 2017 AUGUST 2017
28 02-05 22
MAJLIS MESRA AIDILFITRI WISMA MEDIA VISIT TO ZHEJIANG GEELY, CHINA SIGNING CEREMONY WITH DANAJAMIN
DRB-HICOM
A team of 24 representatives from Malaysia were DRB-HICOM inked an MOU with Danajamin
An annual event to share the joy of the festivities led by the Group Strategic Communications Team Nasional Berhad, Malaysia’s first Financial
with Warga DRB-HICOM in Wisma DRB-HICOM. and PROTON’s Group Corporate Communications Guarantee Insurer, which guaranteed a 19-year,
More than 1,000 Warga gathered in a casual setting Team to visit the Geely Headquarters situated in RM340 million Medium Term Note Programme to
organised by Kelab Sukan DRB-HICOM. Hangzhou, China. Northern Gateway Infrastructure Sdn Bhd. It was
successfully issued and will primarily be used
to part finance the construction cost of the
Immigration, Customs, Quarantine and Security
complex in Bukit Kayu Hitam, Kedah.
16DRB-HICOM Annual Report
BERHAD 2018
AUGUST 2017 SEPTEMBER 2017 OCTOBER 2017
30 27 25-26
DRB-HICOM 27TH ANNUAL GENERAL PROVIM WINNER RECEIVES SAGA 1.3CVT SAFETY AND HEALTH CAMPAIGN DAY
MEETING
PROVIM, organised by Media Prima is a With the theme of ‘Care You Can Believe In’,
The 27th AGM gathered more than 3,000 competition to crown the best short video on programmes were lined up and offered the best
shareholders for the annual shareholders patriotism, held in conjunction with the National services for Warga DRB-HICOM. The parties
gathering. This year, the AGM was followed by an Day and Malaysia Day. The grand prize was won involved were Mobecomm, Qualitas, IMU
EGM. by Mohamad Faiz Yaakob from Kelantan who Healthcare, KPJ Healthcare, Alam Flora and many
walked away with a brand new Saga 1.3CVT more. At the blood donation campaign, a total of
sponsored by DRB-HICOM. 27,000ml blood was collected from 69 Warga
DRB-HICOM donors.
NOVEMBER 2017
04 12 21
DRB-HICOM DEEPAVALI CELEBRATION DRB-HICOM FAMILY DAY ISUZU-HICOM 10TH ANNIVERSARY
WITH PERTUBUHAN KEBAJIKAN IHSAN
KANAK-KANAK ARUT PERUM JOTHY, IPOH Warga DRB-HICOM had a blast at Lost World The company celebrated a decade of milestones
of Tambun. More than 1,000 Warga and their and achievements with their staff, partners, local
The children from Pertubuhan Kebajikan Ihsan family members gathered to strengthen the bond government officers and stakeholders. Susumu
Kanak-Kanak Arut Perum Jothy, Ipoh were treated between our Warga with the theme “We Are Hosoi, Isuzu Motors Limited Chairman attended
to a Deepavali celebration. A total of 31 children Family”. the ceremony.
were entertained with clowns and treated to some
games. They danced and had a wonderful time
with Sahabat DRB-HICOM.
17DRB-HICOM Annual Report
BERHAD 2018
NOVEMBER 2017 JANUARY 2018
07 05 15-17
HICOM AUTO LAUNCHES VOLKSWAGEN BACK-2-SCHOOL PROGRAMME EURASIA 2018
SEREMBAN
The programme saw 725 students receiving the aid DRB-HICOM returned once again as the presenting
Volkswagen Passenger Cars Malaysia (VPCM) and for the school year as compared to 259 students partner for the third edition of the EurAsia Cup;
HICOM Auto launched the latest addition to the last year. The recipients were the children of Warga a bi-annual match-play golf tournament. The
Volkswagen network - the Volkswagen Seremban DRB-HICOM and underprivileged children from SK tournament provides an opportunity for
3S Centre. Spanning over a total of 24,735 sqft, Bangsar, SK Menson in Pahang, SK Endap and SK Sri DRB-HICOM to be associated with an international
the Volkswagen Seremban 3S Centre showroom is Pinang in Sarawak. team event between the best of Asia and the best
able to fit eight car displays and a guest lounge for of Europe. EurAsia Cup also provides a platform for
customer convenience. DRB-HICOM to grow our brand awareness globally.
FEBRUARY 2018 MARCH 2018
03 05
DRB-HICOM LAUNCHES NATIONAL CHINESE NEW YEAR CELEBRATION WITH
AUTOMOTIVE CLUSTER ("NAC") HEMODIALYSIS PATIENTS
Tanjong Malim was declared as the site of the NAC, DRB-HICOM shared the Lunar New Year
a 980-acre plot which is carved out within the festive joy with haemodialysis patients from
sprawling Proton City development designed to be Pusat Hemodialisis Dato’ Lee Kok Chee, Pusat
Hemodialisis PMKL and Pusat Hemodialisis Kau
an industrial park dedicated for local and foreign
Ong Yah. Each centre received RM5,000 and our
automotive vendors. Sahabat spent some time with the patients and
spreading new year joy.
18DRB-HICOM Annual Report
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19DRB-HICOM Annual Report
BERHAD 2018
Financial Calendar
for the financial year ended 31 March 2018
Announcement of Unaudited
Date of Announcement
Consolidated Results
1st Quarter ended 30 June 2017 25 August 2017
2nd Quarter ended 30 September 2017 30 November 2017
3rd Quarter ended 31 December 2017 28 February 2018
4th Quarter ended 31 March 2018 31 May 2018
Dividend
Single Tier First and Final
Dividend of 3.0 sen per share
Notice Date Entitlement Date Payment Date
31 July
2018 13 September
2018 01 October
2018
28 th Annual General Meeting
Notice Date Meeting Date
31 July
2018 30 August
2018
20DRB-HICOM Annual Report
BERHAD 2018
Corporate Information
as at 29 June 2018
BOARD OF DIRECTORS
Dato’ Mohammad Zainal bin Dato’ Siti Fatimah Dato’ Ibrahim bin Taib Tee Beng Thong
Shaari binti Daud Independent Independent
Chairman/ Non-Independent Non-Independent Non-Executive Director Non-Executive Director
Non-Executive Director Non-Executive Director
Dato’ Sri Syed Faisal Albar bin Datuk Ooi Teik Huat Datuk Idris bin Abdullah Sharifah Sofia binti Syed Mokhtar
Syed A.R. Albar Senior Independent @Das Murthy Shah
Group Managing Director Non-Executive Director Independent Non-Independent
Non-Executive Director Non-Executive Director
BOARD NOMINATION AND BOARD RISK AND
BOARD AUDIT COMMITTEE
REMUNERATION COMMITTEE SUSTAINABILITY COMMITTEE
Chairman Chairman Chairman
Datuk Ooi Teik Huat Dato’ Mohammad Zainal bin Shaari Datuk Idris bin Abdullah@Das Murthy
Members Members Members
Dato’ Ibrahim bin Taib Datuk Ooi Teik Huat Datuk Ooi Teik Huat
Datuk Idris bin Abdullah@Das Murthy Datuk Idris bin Abdullah@Das Murthy Dato’ Siti Fatimah binti Daud
COMPANY SECRETARY REGISTERED OFFICE COMPANY WEBSITE
Sabarina Laila binti Mohd Hashim Level 5, Wisma DRB-HICOM www.drb-hicom.com
(LS0004324) No. 2, Jalan Usahawan U1/8
Tel : +603 2052 7695 Seksyen U1
Fax : +603 2052 7696 40150 Shah Alam SHARE REGISTRAR
E-mail : sabarina@drb-hicom.com Selangor Darul Ehsan
Malaysia Symphony Share Registrars Sdn. Bhd.
Tel : +603 2052 8000 (Company No: 378993-D)
INTERNAL AUDIT Fax : +603 2052 8099 Level 6, Symphony House
Pusat Dagangan Dana 1
Abdul Jamil bin Johari Jalan PJU 1A/46, 47301
Head, Group Internal Audit INVESTOR RELATIONS Petaling Jaya, Selangor Darul Ehsan
Tel : +603 2052 8962 Malaysia
Fax : +603 2052 8959 Norli binti Dollah Tel : +603 7849 0777
E-mail : jamil@drb-hicom.com Manager, Investor Relations Fax : +603 7841 8151/52
Tel : +603 2052 8194/8213 E-mail : ssr.helpdesk@symphony.com.my
AUDITORS Fax : +603 2052 8228
E-mail : invest@drb-hicom.com
PRINCIPAL SOLICITORS
Ernst & Young (AF 0039)
Chartered Accountants PRINCIPAL BANKERS
Naqiz & Partners
Level 23A, Menara Milenium
Hisham, Sobri & Kadir
Jalan Damanlela Bank Muamalat Malaysia Berhad Kadir Andri & Partners
Pusat Bandar Damansara Malayan Banking Berhad
50490 Kuala Lumpur, Malaysia RHB Bank Berhad
Tel : +603 7495 8000 AmBank (M) Berhad
Fax : +603 2095 5332 STOCK EXCHANGE LISTING
CIMB Bank Berhad
Listed on Main Market of Bursa Malaysia
AGM HELPDESK Securities Berhad
Listing Date : 4 September 1992
Stock Name : DRBHCOM
Tel : +603 2052 8136/7695 Stock Code : 1619
21DRB-HICOM Annual Report
BERHAD 2018
Group Corporate Structure
Operating companies as at 31 March 2018 Konsortium
Logistik
(Sabah)
Sdn. Bhd.
E.I. : 53.50%
DRB-HICOM KP Cougar Malaysian
Westport KP Asia
Environmental Alam Flora Distribution Logistics Shipping
Distripark (M) Auto Logistics
Services Sdn. Bhd. Services (Malaysia) Agencies
Sdn. Bhd. Sdn. Bhd.
Sdn. Bhd. Sdn. Bhd. Sdn. Bhd. Sdn. Bhd.
E.I. : 97.37% E.I. : 53.50% E.I. : 53.50%
E.I. : 97.37% E.I. : 53.50% E.I. : 53.50% E.I. : 53.50%
Pos Aviation
Pos Asia Pos Logistics Engineering
Cargo Express Berhad Services
Sdn. Bhd. Sdn. Bhd.
E.I. : 53.50%
E.I. : 53.50% E.I. : 53.50%
Puspakom Muamalat Muamalat
Datapos (M) Pos Digicert Pos Aviation PSH Express Pos Ar-Rahnu
Proton City Teknik Invest Venture
EON Sdn. Bhd. Sdn. Bhd. Sdn. Bhd. Sdn. Bhd. Sdn. Bhd.
Development Sdn. Bhd. Sdn. Bhd. Sdn. Bhd.
Properties
Corporation E.I. : 53.50% E.I. : 53.50% E.I. : 53.50% E.I. : 53.50% E.I. : 53.50%
Sdn. Bhd. E.I. : 100% E.I. : 70% E.I. : 70%
Sdn. Bhd.
E.I. : 100% E.I. : 100%
Glenmarie
Dekad Kaliber Development HICOM Bank
Sdn. Bhd. (Pahang) University Pos Malaysia PUSPAKOM Muamalat
Sdn. Bhd. College Berhad Sdn. Bhd. Malaysia
E.I. : 100% Berhad
E.I. : 100% Sdn. Bhd.
E.I. : 53.50% E.I. : 100%
E.I. : 100% E.I. : 70%
Glenmarie
HICOM
Rebak Island Cove HICOM Berhad
Indungan
Marina Berhad Development
Sdn. Bhd.
Sdn. Bhd. E.I. : 100%
E.I. : 100%
E.I. : 100% E.I. : 100%
Northern
Glenmarie Gateway
Neraca Prisma Properties
Sdn. Bhd. Infrastructure
Sdn. Bhd. Sdn. Bhd.
E.I. : 100% E.I. : 100% E.I. : 100%
Benua Kurnia
Sdn. Bhd.
E.I. : 100%
Proton
Media City PROTON HICOM
Properties
Ventures Holdings Holdings
Sdn. Bhd.
Sdn. Bhd. Berhad Berhad
E.I. : 100%
E.I. : 51% E.I. : 50.10% E.I. : 100%
Media City
Development
Sdn. Bhd
HICOM-Gamuda Horsedale E.I. : 51%
Development Development
Sdn. Bhd. Berhad
E.I. : 35.30% E.I. : 70.60%
Puncak
Permai
Sdn. Bhd.
E.I. : 58%
Sectorial
Automotive
Services
Properties PROTON
Marketing
Sdn. Bhd.
Investment Holding
E.I. : 50.10%
Joint Ventures
Associated Companies
DRB-HICOM Group’s Effective Interest
22DRB-HICOM Annual Report
BERHAD 2018
SRT-EON
Security
Services
Sdn. Bhd.
PNSL Risk Parcel Tankers
Management Malaysia E.I. : 40%
Sdn. Bhd. Sdn. Bhd.
E.I. : 53.50% E.I. : 27.29%
Aman Freight Diperdana
(Malaysia) PNSL Berhad Kontena
Sdn. Bhd. Sdn. Bhd.
E.I. : 53.50%
E.I. : 53.50% E.I. : 53.50%
Isuzu
Service Center
Sdn. Bhd.
E.I. : 73.69%
Defence
Services DRB-HICOM DRB-HICOM
Sdn. Bhd. EZ-Drive Leasing
CTRM
Aero Sdn. Bhd. Sdn. Bhd.
E.I. : 100%
Isuzu Malaysia Composites
Sdn. Bhd. Sdn. Bhd. E.I. : 100% E.I. : 100%
Composites
E.I. : 48.42% Technology E.I. : 96.87%
Research Malaysia Euromobil
Sdn. Bhd. Sdn. Bhd.
CTRM
E.I. : 96.87% Testing E.I. : 100%
DRB-HICOM Laboratory
Auto Solutions DEFTECH Sdn. Bhd.
Automotive
Sdn. Bhd. Unmanned Corporation
Systems E.I. : 96.87%
(Malaysia) HICOM Auto
E.I. : 100% Sdn. Bhd. Sdn. Bhd. Sdn. Bhd.
E.I. : 100% E.I. : 100% E.I. : 100%
DRB-HICOM DEFTECH
Defence Aviation
Edaran EON
Technologies Sdn. Bhd.
Otomobil Auto Mart
Sdn. Bhd. Nasional Sdn. Bhd.
E.I. : 100% Berhad
E.I. : 100% E.I. : 100%
Marutech E.I. : 100%
DEFTECH Elastomer
Systems Industries
DRB-HICOM Mitsubishi
Honda Integration Sdn. Bhd.
Commercial Motors
Malaysia Sdn. Bhd.
Vehicles Malaysia
Sdn. Bhd. E.I. : 25% Sdn. Bhd.
E.I. : 100% Sdn. Bhd.
E.I. : 34% E.I. : 100%
E.I. : 48%
Suzuki
Motorcycle
Malaysia HICOM
Sdn. Bhd. Polymers HICOM HBPO
Motosikal Edaran Industry
Dan Enjin Sdn. Bhd.
Modenas E.I. : 29% Sdn. Bhd.
Nasional Sdn. Bhd. E.I. : 60%
Sdn. Bhd. E.I. : 100%
E.I. : 81%
E.I. : 81%
ISUZU HICOM
Malaysia HICOM
Sdn. Bhd. Diecastings
Automotive Sdn. Bhd.
E.I. : 49% Oriental Faurecia HICOM
Conversion
E.I. : 100% Summit Emissions Control
Engineering
Industries Technologies (M)
Sdn. Bhd.
Proton Motors Sdn. Bhd. Sdn. Bhd.
(Thailand) Exedy
E.I. : 50.10% (Malaysia)
Company PHN Industry E.I. : 100% E.I. :35%
Limited Sdn. Bhd. Sdn. Bhd.
Perusahaan Proton
Otomobil Tanjung Malim E.I. : 50.10% E.I. : 45% E.I. : 100%
Nasional Sdn. Bhd. DRB-HICOM
Sdn. Bhd. Mechatronics
Proton
E.I. : 50.10% Proton Parts Sdn. Bhd.
E.I. : 50.10% Commerce
Centre HICOM-YAMAHA
Sdn. Bhd. HICOM
Sdn. Bhd. Manufacturing Automotive E.I. : 100%
Miyazu E.I. : 25.05% Malaysia Manufacturers
(Malaysia) E.I. : 50.10% Sdn. Bhd. (Malaysia)
Sdn. Bhd. Sdn. Bhd.
E.I. : 45% E.I. : 100%
E.I. : 33.07% Lotus Cars
Proton Edar Malaysia
Sdn. Bhd. Sdn. Bhd. HICOM-Teck See
Manufacturing
E.I. : 50.10% E.I. : 50.10% Malaysia
Sdn. Bhd.
Proton Cars PT Proton E.I. : 51%
Australia Edar
Pty. Limited Indonesia
E.I. : 50.10% E.I. : 50.10%
23DRB-HICOM Annual Report
BERHAD 2018
Investor
Relations
DRB-HICOM Group has regained growth momentum despite demanding
circumstances and economic volatility in FY2017/18. Various factors
contributed to the overall improved performance of the Group. Among them
are strategic initiatives and/or partnerships, business rationalisation and
rejuvenation, as well as disposal of non-core assets in our efforts to create
future growth and value to the shareholders.
The Group believes in establishing and maintaining good relationships with
the investing community. Thus, various efforts have been made by the Senior
Management through our Investor Relations (“IR”) Department to continuously
engage and inform the investors of the current and future business
developments and challenges.
SHAREHOLDER BASE
DRB-HICOM’s broad shareholder base consists of government agencies,
corporate, institutional and private/retail shareholders. As at 31 March
2018, it had a total of 39,179 shareholders, with Etika Strategi Sdn. Bhd.
and Employees Provident Fund holding the highest equity at 55.9%
and 7.6% respectively. Foreign shareholding registered at 9.2%.
39,179 70.3% 9.2%
Institutional/ Substantial Foreign
Retail Shareholders Shareholders Shareholding
Etika Strategi
Sdn. Bhd. 55.9%
Employees
Provident Fund 7.6%
Lembaga
Tabung Haji 6.8%
As at 31 March 2018
24DRB-HICOM Annual Report
BERHAD 2018
SHARE PERFORMANCE
For FY2017/18, DRB-HICOM’s quarterly share price generally surpassed the movements of FBM KLCI. Influx of foreign buying
interest drove the FBM KLCI to rise tremendously by end of 2017. Share price closed at RM2.44 as at 31 March 2018 with total
turnover of RM3.7 billion and 1.9 billion shares exchanging hands in FY2017/18 compared to a total turnover of RM1.5 billion
with 1.9 billion shares traded in the previous year. The surge in volume traded mainly came from the escalating interest in the
Group following the completion of the search for a Foreign Strategic Partner (“FSP”) of PROTON Holdings Berhad (“PROTON”) and
other transactions announced by the company.
DRB-HICOM Share Price Performance VS. FBM KLCI FY2018
RM Index
Q1 Q2 Q3 Q4
3.0 1900
2.5 1850
2.0 1800
1.5 1750
1.0 1700
Q1 Change (%) Q2 Change (%) Q3 Change (%) Q4 Change (%)
0.5 DRBH - 20.3 DRBH - (1.1) DRBH - 1.6 DRBH - 33.0 1650
DRB-HICOM KLCI - 2.1 KLCI - (0.1) KLCI - 0.4 KLCI - 4.3
FBM KLCI 0.0 1600
Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18
Share Price & Volume Traded
4, 5 Years Trading Volume & ,-##-"./
CFD Highest - Lowest Share Price (Intra-day) ==DRB-HICOM Annual Report
BERHAD 2018
INVESTOR ENGAGEMENTS
Various methods adopted in IR’s effort to ensure continuity in engaging the investing
community with key events are tabulated below:
Plant Visit
• HICOM Automotive Complex in Pekan, Pahang 18 April 2017, 6 October 2017
Analyst Briefing
Key Events
• Heads of Agreement signing with FSP 24 May 2017
Date
• Investor and Analyst Day 22 March 2018
• Non-deal Roadshow 23 August 2017
• Annual General Meeting and Extraordinary General Meeting 30 August 2017
• One-on-one meetings/ equity conferences/ corporate luncheons, etc Throughout the year
Investor and Analyst Briefings
There was an overwhelming demand for updates on the
Group’s overall corporate and strategic development
and quarterly financial performance from the investing
community. The Group had engaged with more than 150
fund managers, analysts, institutional shareholders as
well as existing and potential investors through Analyst briefing at
one-on-one or small group meetings, teleconferences, Holiday Inn Kuala Lumpur Glenmarie
on 23 March 2018
non-deal roadshows and analyst briefings to keep them
abreast with the Group’s current position. These meetings
provide a platform where investing communities can seek
more in-depth understanding on the Group’s performance
and strategy going forward, directly from Senior
Management.
Analyst briefing
following Heads of Agreement
signing with Geely
on 24 May 2017
26DRB-HICOM Annual Report
BERHAD 2018
Visit to DRB-HICOM Defence Technologies Sdn. Bhd.
Plant Visits
We further showcased the Group’s value proposition as a Both visits included corporate briefings by DHAS,
key automotive player in the market via visits to HICOM DRB-HICOM University and DEFTECH, plant tour and test
Automotive Complex in Pekan, Pahang separately on 18 drives to experience the new Tiguan and Passat. It
April and 6 October 2017. HICOM Automotive Complex is necessary that investors gain visual perspectives
houses Mercedes-Benz and Volkswagen assembly plants, themselves to better understand our multifaceted
DRB-HICOM Auto Solutions Sdn. Bhd. (“DHAS”), DRB-HICOM businesses. The events showcased our business presence
Defence Technologies Sdn. Bhd. (“DEFTECH”) and DRB-HICOM in the entire spectrum of automotive ecosystem and,
University of Automotive Malaysia (“DRB-HICOM University”). including our education programmes.
Visit to DRB-HICOM University of Automotive Malaysia Visit to the Volkswagen assembly plant
Quarterly Financial Announcement
DRB-HICOM announces its financial results on a quarterly basis. Respective investor-friendly financial
performance decks were made available immediately on the Group’s website following each disclosure to
Bursa Malaysia as tabulated in the following table:
First Quarter FY2017/18 25 August 2017
Key Events
Second Quarter FY2017/18 30 November 2017
Date
Third Quarter FY2017/18 28 February 2018
Fourth Quarter FY2017/18 31 May 2018
27DRB-HICOM Annual Report
BERHAD 2018
Annual General Meeting and Extraordinary General RETURN TO SHAREHOLDERS
Meeting
We reiterate our dividend commitment through the
DRB-HICOM’s 27 th Annual General Meeting (“AGM”) and dividend policy statement as approved by the Board as
Extraordinary General Meeting (“EGM”) were held on follows:
30 August 2017 at the Holiday Inn Kuala Lumpur Glenmarie.
Both meetings served as platforms for shareholders to DIVIDEND POLICY
interact with the Board of Directors (“Board”) and Senior
Management on financial results and business-related “It is the Group’s intention to create value for shareholders
matters. through a sustainable dividend policy. In line with this,
the Board acknowledges the importance of rewarding
During the EGM, approvals were sought from shareholders shareholders with a stable dividend and to sustainably
to give the authority to the Board to carry out and proceed grow dividend over time
with the Proposed Share Subscription and the Proposed
Divestment of PROTON. All resolutions were duly passed, Considering the Group is currently
announced to and disclosed to Bursa Malaysia on the same
day. undertaking major investments, the dividend
payout target will be between 20% and 30%
Credit Rating of the operational net profit.
Malaysian Rating Corporation Berhad (“MARC”) was The dividend policy shall be reviewed by the Board
engaged several times to provide update on developments periodically. In determining the annual dividend level,
within the Group as well as the Group’s deliverables the Board will take into consideration the availability of
going forward. MARC had in September 2016, rated A+ IS cash, retained earnings, operating cash flow requirements,
for DRB-HICOM’s Islamic Medium-Term Notes (“IMTN”) business prospect, future capital expenditure, investment
Programme of up to RM1.8 billion, and A- IS for Perpetual plan and financing requirements. The Board will ensure
Sukuk Musharakah Programme (“Perpetual Sukuk”) of up to a good balance sheet management with gearing kept at
RM2.0 billion. Both were maintained at “Stable”. manageable level.”
The affirmed ratings reflect the improving credit profile
CAPITAL MARKET FEEDBACK
of DRB-HICOM following the 49.9% dilution of stake in
PROTON and full divestment of Lotus Advance Technologies
DRB-HICOM recognises that feedback from the investment
Sdn. Bhd. stronger performance of non-PROTON marques
community is vital to meeting the information needs
i.e. Honda, improving prospects of Logistics business
and improving relationships. As such, any constructive
and stable revenue generation from sizeable contracts
feedback and ideas can be directed to the IR Department
in the Defence and Aerospace businesses. The potential
at invest@drb-hicom.com.
challenges in turning around PROTON and potential
increase in capital expenditure to fund expansion of
logistics businesses moderate the ratings.
IR Webpage
As part of our continuous effort to provide up-to-date
information on our businesses and performance to the
investing community, we post our latest quarterly financial
results, announcements and disclosures on our corporate
website www.drb-hicom.com as per Bursa Malaysia
requirements. Our website also contains our annual reports,
press releases and archives of past corporate and financial
information.
28DRB-HICOM Annual Report
BERHAD 2018
DRB-HICOM’s 27 th
Annual General Meeting
29DRB-HICOM Annual Report
BERHAD 2018
Group 5 Years
Financial Highlights
2018 2017 2016 2015 2014
RM’000 RM’000 RM’000 RM’000 RM’000
Operating Revenue 12,789,677 12,058,334 12,172,941 13,687,839 14,200,742
Profit/(Loss) Before Taxation 415,130 (227,698) (822,130) 501,834 801,741
Basic and Diluted Earnings/(Loss) Per Share (sen) 25.78 (23.62) (51.35) 15.53 23.91
Dividend Per Share ^ (sen) 3.00 1.00 2.00 6.00 6.00
Total Assets 43,195,433 44,044,826 42,041,503 42,359,330 39,753,022
Total Equity 10,285,872 10,254,313 8,502,443 9,352,075 8,511,548
Net Assets Per Share * (RM) 3.48 3.14 3.38 3.92 3.78
Total Borrowings 5,785,112 6,293,775 6,864,745 6,909,731 7,127,063
Gross Gearing Ratio (Times) 0.56 0.61 0.81 0.74 0.84
^ Dividend per share (gross) consists of interim and final dividend declared and proposed for the designated financial year
* Based on 1,933,237,051 ordinary shares in issue
Profit/(Loss) Before Taxation
RM’000
1,000,000
Operating Revenue 801,741
800,000
RM’000
14,500,000 600,000 501,834
14,200,742 415,130
14,000,000 400,000
13,687,839
13,500,000 200,000
13,000,000 12,789,677 -
12,500,000 (200,000)
12,172,941
12,058,334
(227,698)
12,000,000 (400,000)
11,500,000 (600,000)
11,000,000 (800,000)
(822,130)
10,500,000 (1,000,000)
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Financial Year Ended Financial Year Ended
30DRB-HICOM Annual Report
BERHAD 2018
Basic and Diluted Earnings/(Loss) Per Share
sen
30.00 25.78
23.91
20.00 15.53
10.00
-
(10.00)
(20.00)
(23.62)
(30.00)
(40.00)
(50.00)
(51.35)
(60.00)
2014 2015 2016 2017 2018
Financial Year Ended
Total Assets
RM’000
45,000,000
44,044,826 Total Equity
44,000,000
43,195,433 RM'000
43,000,000 42,359,330 12,000,000 10,285,872
10,254,313
42,041,503
9,352,075
42,000,000 10,000,000
8,511,548 8,502,443
41,000,000 8,000,000
39,753,022
40,000,000 6,000,000
39,000,000 4,000,000
38,000,000 2,000,000
37,000,000
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Financial Year Ended Financial Year Ended
Gross Gearing Ratio
Net Assets Per Share Times
0.90
RM 0.84 0.81
3.92
4.00 3.78 0.80
0.74
3.48
3.50 0.70
3.38
3.14 0.61
3.00 0.56
0.60
2.50 0.50
2.00 0.40
1.50 0.30
1.00 0.20
0.50 0.10
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Financial Year Ended Financial Year Ended
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