Drb-hicom Bhd. · MYX:DRBHCOM
Drb-hicom Bhd — Shareholder Meeting (September 2013)
18 slides from Drb-hicom Bhd's shareholder meeting presentation, Sep 19, 2013
Slide 1: Annual General Meeting: Queries & Answers for MSWG
Annual General Meeting Queries & Answers for Minority Shareholder Watchdog Group (MSWG) 19 September 2013 1
Slide 2: Question 1: Impact of PROTON acquisition on profit
Question 1: As stated in the Group Managing Director’s Review of Operations, the completion of DRB-HICOM’s acquisition of PROTON in 2012 had impacted its bottom-line for FY2013, reducing the Profit Before Tax to RM1.04 billion. (FY2012 : RM1.82 billion) i) To what extent did the acquisition of PROTO
Slide 3: Answer 1 (i): Negative goodwill and finance costs
Answer 1 (i): The higher PBT of RM1.82 billion for FY2012 as compared to RM1.04 billion in FY2013 was mainly due to the recognition of the negative goodwill of approximately RM1.28 billion on the acquisition of PROTON. However, to finance the acquisition of 100% equity stake in PROTON, the Company r
Slide 4: Question 1 (ii): Board's expectation on PROTON performance
Question 1 (ii): What is the Board’s expectation on the performance of PROTON for FY2014? Answer 1 (ii): It has been our aspiration to steer PROTON forward and make PROTON the Number 1 choice again in Malaysia. To achieve this, PROTON has developed a comprehensive 5-Year Business Plan with specific
Slide 5: Answer 1 (ii) cont'd: Market focus and strategic collaboration
Answer 1 (ii) (cont’): a) Market Focus 1. Rationalization of EON and Proton Edar for improved efficiency and effectiveness. 2. Strengthen export market with specific focus on ASEAN, Australia, United Kingdom, GCC/MENA and South Africa. b) Strategic Collaboration Leveraging on strong partnership with
Slide 6: Answer 1 (ii) cont'd: Product range
Answer 1 (ii) (cont’): c) Product range Emphasize on enhancement of existing models and new product development. The recently launched Saga SV and Suprima S marked strong indication that PROTON is focusing on value proposition for consumers. Perdana replacement model and the Global Small Car (GSC) a
Slide 7: Answer 1 (ii) cont'd: Total Quality Management
Answer 1 (ii) (cont’): d) Total Quality Management Quality improvement is being assessed throughout the business value chain i.e. product development, manufacturing and customer service as well as the business partners at vendor network, and sales and service dealers. e) Vendor enhancement in the ar
Slide 8: Answer 1 (ii) cont'd: Brand building
Answer 1 (ii) (cont’): h) Brand building 1. Focusing on value of safety and drivability performance. 2. Emphasize on the element of “Total Ownership Experience” which covers three (3) key elements – product appeal, customers’ accessibility & convenience, and service quality. However, FY2014 continue
Slide 9: Question 2: Lotus performance and revised business plan
Question 2: It was stated that a Revised Business Plan has been put in place for Lotus, focusing on expanding sales potentials, offering better and wider range of products and managing business operations more effectively. Could the Board provide an update on the performance of Lotus and has the Rev
Slide 10: Answer 2: Lotus Business Plan
Answer 2: Lotus Business Plan was developed comprehensively with specific focus on sales enhancement, product development, powertrain integration, quality and manufacturing operations and financial improvements. The development activities are guided through several phases as follows: i. Refinement o
Slide 11: Answer 2 cont'd: Key achievements to date
Answer 2 (cont’): To further improve the overall business operations and streamline the policies and procedures with the Group, experienced personnel have been assigned to Lotus (UK) to improve the overall business operation. Key achievements to date: 1. Product refinement has resulted in the improv
Slide 12: Answer 2 cont'd: Manufacturing efficiency and cost management
Answer 2 (cont’): 3. The design work for new generation model (Elise) has already started. 4. The improvement in manufacturing efficiency which saw production increased to about 44 to 50 units from about 35 units per week previously. 5. Prudent cost management has been put in place at Lotus and has
Slide 13: Question 3: Administrative expenses
Question 3: The administrative expenses increased from RM914.4 million in FY2012 to RM1.69 billion in FY2013. What measures have been taken to manage and control these costs? The higher administrative expenses of the Group for the financial year ended 31 March 2013 was primarily due to the inclusion
Slide 14: Question 4: Capital expenditure
Question 4: Could the Board provide more details on the capital expenditure amounting to RM2.45 billion (FY2012: RM2.71 billion) as disclosed in Note 56 on page 250 of the Annual Report? Answer 4: The disclosure of capital commitments in the audited financial statements is in relation to proposed ca
Slide 15: Answer 4 cont'd: Capital investments
Answer 4 (cont’): The capital investments are to meet the requirements of the current and future businesses of the Group such as expansion of plants, research and development of new products, purchase of machineries and equipment, etc. These investments are expected to generate positive returns in t
Slide 16: Corporate Governance Matters: Non-audit fees
Corporate Governance Matters:- We noted the disclosure on page 78 of the Annual Report where the non-audit fees of RM5.3 million was higher than the audit fee of RM5.1 million for FY2013. What was the nature of these non-audit services apart from taxation services? Answer: The non-audit fees (other
Slide 17: Answer cont'd: Non-audit services
Answer (cont’): The above services were undertaken upon the acquisition of PROTON and its related companies and were rendered by Messrs. Ernst & Young, in Malaysia and the United Kingdom. 17
Slide 18: Thank You
THANK YOU [DRB-HICOM fee
DRB-HICOM Berhad — Shareholder Meeting (September 2013) on 6ix