SAAB AND DRB-HICOM STRATEGIC PARTNERSHIP IN DEFENCE AND AEROSPACE
LANGKAWI, December 8, 2011 – DRB-HICOM and SAAB AB, Sweden today signed an Industrial Cooperation Teaming Agreement to forge a collaboration in a bid to supply Airborne Early Warning and Control (AEWC) System for the Royal Malaysian Air Force. Through this program, the integration of SAAB’s Eyerie Radar and the incorporation of the “Eye in the Sky†will provide a significant data link to the Royal Malaysian Navy and Malaysian Maritime Enforcement Agency.
The AEWC System will enable the Government to enhance its airspace and maritime awareness to detect, track and monitor its territorial and international domain to combat piracy, smuggling, illegal fishing and terrorism within and around the Malaysian borders. The programme will also help Malaysia achieve its security goals and exemplifies bilateral cooperation with its neighbouring countries.
The partnership between these two companies is based on extensive experience, strength and capabilities of both companies, in supporting the government’s defence programme with solutions that will enhance Malaysia’s operational capabilities. DRB-HICOM will provide a significant local involvement in the entire project cycle starting from production to testing and eventually to support AEWC operations.
The collaboration entrenched in the Industrial Cooperation Teaming Agreement between these two companies is a major step taken towards upgrading Malaysia’s defence aviation technologies and capabilities specifically in the Aeronautics System Integration and Command & Control areas. The collaboration will also strengthen the current expertise in terms of competencies in project management, system engineering as well as supply chain management.
The collaboration between DRB-HICOM and SAAB AB augurs well with the strategic plan of DRB-HICOM to strengthen its position in the area of defence and aerospace, not only in Malaysia but also in the region.
DRB-HICOM Berhad records higher current quarter pretax profit of RM164.06 million, up 12.1% from RM146.31 million in the preceding quarter.
Shah Alam, Thursday, November 24, 2011- DRB-HICOM Berhad achieved a higher pretax profit of RM164.06 million in the current quarter ended 30 September 2011 as compared to RM146.31 million in the preceding quarter ended 30 June 2011. The 12.1% improvement was attributed by higher results of operating companies as well as the recognition of share of results of POS Malaysia Berhad, equity accounted from July 2011. Accordingly, the net assets per share increased to RM2.64 as at 30 September 2011 compared to RM2.58 as at 31 March 2011.
For the six months ended 30 September 2011, DRB-HICOM achieved lower revenue of RM3.06 billion compared to RM3.20 billion in the previous corresponding period ended 30 September 2010. The decline in revenue was mainly due to lower sales recorded by the automotive sector in line with the lower total industry volume (TIV) for motor vehicles during the period under review.
Due to the lower profit contribution from the associated companies following the automotive supply-chain disruption arising from the tsunami and earthquake in Japan in the early part of the year, the Group operating profit (without exceptional item) reduced by 8.3% to RM310.4 million from RM338.4 million reported in the previous corresponding period. In the current period, no exceptional gain was reported as opposed the recognition of negative goodwill at RM71.2 million reported in the corresponding period.
The Government aims to implement various development plans to stimulate the domestic economy with both public and private investments. With the recently announced stronger than expected 3Q Gross Domestic Product (GDP) of 5.8%, the economy is forecasted to remain resilient and to continue sustaining growth. However, the current external business environment has become increasingly challenging with the economic slowdown in Europe and the United States together with the continuing European debt crisis and adverse impact of the natural disasters of late.
The automotive and automotive components supply constraints arising from the flood situation in Thailand compounded with the unfavourable exchange rate movements are expected to affect the Group“s automotive business. Group Managing Director Dato“ Sri Haji Mohd Khamil Jamil said the Group will continue to pursue various cost management initiatives and remain prudent in business approaches to minimize the negative impact due to the exchange rate volatility and supply uncertainty.
“I am confident the diversity of our businesses will provide the unique mix that is able to withstand the ferocious wave of challenges. Despite the slowdown in the automotive sector, services sector together with the inclusion of POS Malaysia as well as the property sector will provide cushion and long term reliable sustainable earnings for the Group.â€Â
DRB-HICOM Berhad“s post RM1.58b, up 1.86 per cent revenue for the First Quarter for FY 2011/12
Shah Alam, Thursday, August 25, 2011 – DRB-HICOM Berhad Group“s revenue for the first quarter ended 30 June 2011 rose to RM1.58 billion compared to RM1.55 billion in the previous corresponding quarter ended 30 June 2010, supported by higher revenue contribution by its Services as well as Property, Construction and Assets (PAC) sectors.
The Group operational profit was RM146.31 million as compared to RM152.26 million achieved in the previous corresponding quarter ended 30 June 2010. The marginal decline was mainly attributed by the lower share of results from certain automotive related jointly controlled and associated companies arising from the shortages of components and disruptions to the supply-chains due to Japan“s natural disaster in March 2011. In the previous corresponding period, the Group had recognized a one-off exceptional gain i.e. negative goodwill of RM71.22 million, arising from the accretion of equity interest in EON Bhd. Hence, profit reported during the period was RM223.48 million.
The recent downgrading of the United States sovereign rating, European debt crisis, and the continuous increase in inflation will potentially affect the Malaysian economy. Against this challenging background, the Group will continue to pursue various cost management initiatives and review the Group“s business approaches to mitigate the negative and adverse impact on the Group“s financial results for the financial year ending 31 March 2012.
Group Managing Director Dato“ Sri Haji Mohd Khamil Jamil said that he is positive that the effects of the tragedy in Japan will not be a prevailing factor in the Group“s future performances.
“This like most disasters was unexpected and unavoidable. Nevertheless, DRB-HICOM with its diverse business background is built to withstand various challenges thrown its way. Despite the dip in the automotive sector“s revenue, I am proud to say that the strategic re-alignment in our services sector over the last three years enabled the company to hold strong despite cyclical challenges. “
He added that with the completion of the acquisition of Pos Malaysia on 1 July 2011, it would also mean that the Group would be able harness the synergistic opportunities within the Group and this would eventually contribute positively to the Group“s future earningsâ€Â.
DRB-HICOM Berhad receives Q-Radar Hall Of Fame Award for the efficient implementation of Enterprise Risk Management
DRB-HICOM Berhad received Tricor Roots Consulting“s Q-RADAR Hall of Fame Award on July 26, 2011, for its remarkable effort and progress in the implementation of Enterprise Risk Management resulting in a significant change in risk culture and ownership.
Group Chief Operating Officer Dato“ Lukman Ibrahim who received the award on behalf of the company at Tricor Roots Consulting“s Performance, Governance, Risk and Compliance Summit (GRC ) today said that DRB-HICOM is committed to enhance Group-wide risk management practices to not only to protect its operations and business interest but also to safeguard and enhance stakeholders“ interest and confidence.
The Q-RADAR Hall of Fame Award is awarded to companies that have successfully implemented a comprehensive Enterprise-wide Risk Management Framework.
Risk management in DRB-HICOM Berhad, is a shared responsibility and is integrated within the Group“s governance, business processes and operations. Employees“ commitment towards risk management process is constantly emphasised
DRB-HICOM COMPLETES ACQUISITION OF KHAZANAH“S STAKE OF 32.21% IN POS MALAYSIA
SHAH ALAM, July 1, 2011 – DRB-HICOM Berhad announced that it has completed the acquisition of 32.21% stake in Pos Malaysia Berhad from Khazanah Nasional Berhad (“Khazanahâ€Â), the investment arm of the Government. As of today, DRB-HICOM Berhad has replaced Khazanah as the single largest shareholder of Pos Malaysia.
In April this year, DRB-HICOM was successful in its bid to acquire Khazanah“s strategic stake in POS Malaysia and the Group acquired Khazanah“s 172,997,399 ordinary shares of RM0.50 each in Pos Malaysia for a consideration of approximately RM622.8 million based on the price of RM3.60 per POS Malaysia share.
The Group“s success in its bid for the strategic stake in Pos Malaysia was largely due to its defined and executable business plan on propelling Pos Malaysia“s growth.
Group Managing Director of DRB-HICOM Berhad Dato“ Sri Hj Mohd Khamil Jamil said both entities are a natural fit. “Synergies that can be created between DRB-HICOM and POS Malaysia are vast. On our part we have the necessary experience and talents to take POS Malaysia to a greater height.â€Â
Among the immediate plans to boost Post Malaysia“s growth are to increase its market share in the highly competitive courier segment, turnaround its retail business by becoming a virtual retail network to reach out extensively to the public and to revitalise its logistic business as well as to tap on the significant logistic business.
The Group also plans to leverage on Pos Malaysia“s extensive network to promote its wide range of products and services especially its insurance, logistic and banking businesses.
“Making our wide range of products and services available at more than 1,000 postal outlets nationwide, will not only further expand our businesses but also enhance POS Malaysia“s retail business by turning its outlets into one-stop solution centres.
Ultimately, our vision is to turn POS Malaysia into a strong relevant household brand of today.â€Â
Dato“ Sri Hj Mohd Khamil Jamil said that he was confident that both DRB-HICOM and Pos Malaysia can nurture a truly synergistic partnership which is able to nourish and propel growth both ways.
DRB-HICOM BERHAD“s FY2011 REVENUE UP 7.8% TO RM6.80 BILLION WITH OPERATIONAL PROFITS SURGING 41.2% TO RM630.3 MILLION
DRB-HICOM Berhad delivered commendable performance for the 12 months ended 31 March 2011. Group revenue rose 7.8 % to RM 6.80 billion compared to RM6.31 billion registered last year. The growth was primarily driven by better performance achieved by its Automotive and Services sectors, which contributed 59% and 39% respectively to its total revenue.
The strong Group operational performance attributed significantly to a higher profit in FY2011. Operational profit now accounts for 90 % of the reported total profit of RM701.5 million compared to 68 % a year ago.
In line with the improved performance, the total gross dividend payout for FY2011 will be 50 % higher at 6 sen per share compared to 4 sen per share paid in 2010. The company had paid an interim dividend of 2 sen on 28 March, 2011 and the balance 4 sen will be paid after shareholders“ approval.
Commenting on the full-year performance, DRB-HICOM Berhad“s Group Managing Director, Dato“ Sri Haji Mohd Khamil Jamil said, “We are humbled to be able to maintain our growth momentum with improved revenue and excellent operational profits due to the management“s continuous effort in leveraging the Group“s strength in seizing opportunities in a highly competitive environment. Additionally, the management unwavering emphasis on effective and efficient quality, cost and delivery management has assisted to contain challenges and add value to the Group.â€Â
“Focusing on cost and operational efficiency is not only to ensure constant growth for the Group but also part of our commitment to deliver value to shareholders,†he said, pointing out to the Company“s decision to increase the gross dividend payout to 6 sen per share from 4 sen paid last year.
“Share price has also appreciated over the period, with market capitalization increasing to RM4.44 billion compared to RM2.24 billion as at 31 March 2010. The Group“s net assets per share improved to RM 2.58 as at 31 March 2011 compared to RM2.37 on the same date last year. The Group“s total asset as at 31 March 2011 stood at RM28.02 billion against RM25.99 billion a year ago,†he continued, adding that, earnings per share was at 24.44 sen.
He further added that the Group has entered into numerous strategic initiatives that are expected to further propel its growth in the coming years. “The most recent and notable milestone was our alliance with Europe“s no 1 automotive manufacturer, Volkswagen AG and we are confident that this will be a mutually beneficial and successful partnership to not only propel DRB-HICOM“s role in the automotive industry but also to provide impetus to spur the positive change in the landscape of the national automotive industry.â€Â
Dato“ Sri Haji Mohd Khamil Jamil further said that the Group will continue to focus on effective cost management and operational efficiency measures to mitigate any substantial increase in costs amidst the uncertainty of the global economic situation, which may adversely impact its performance. Coupled with the several business initiatives in place, the Group is expected to record another satisfactory year ending 31 March 2012.
Audi celebrates The Art of Progress with the All New Audi A8 L
Euromobil Sdn Bhd, the sole distributor of Audi cars in Malaysia, unveiled the all new Audi A8 L in a special celebration inspired by the guiding principle “The Art of Progress†on Friday March 25, 2011 at the Royal Selangor Pewter’s Visitor Centre, in Setapak.
Since its inception, Audi has embraced progress in its quest to create groundbreaking technologies and deliver new ideas. A leader when it comes to pioneering new innovations, Audi clearly demonstrates in the development of the A8 that advances in science and engineering cannot exist without artistic expression.
The new A8 is a reflection of supreme artistry. Combining progressiveness and sportiness, the new flagship is a technological work of art brought to life by a passionate team of engineers and designers. Each person involved in the creation process contributed his or her mastery of skills with artistic fervor to create a car that embodies everything Audi stands for – innovation, perfection, skilled craftsmanship, iconic design and a visionary way of thinking.
The first A8 set benchmarks 15 years ago as the world“s first fully-aluminium production vehicle and the first luxury sedan with all-wheel drive. Along the years, Audi continues to redefine luxury and progressive innovations resulting in a luxury sedan that is incredibly distinctive in its segment.
Euromobil is offering the long wheelbase A8 L that measures 5.27 meters (17.29 ft) whereby the length and wheelbase have both been stretched by 13 centimeters (5.12 in) versus the standard version. The added length is to the benefit of the rear seat passengers who can enjoy the opulent spaciousness plus the back doors are now longer for more convenient entry.
DEFTECH awarded contract worth RM7.55b for 257 units of 8×8 Armoured Wheeled Vehicles
Further to the announcement dated 20 April 2010, DRB-HICOM is pleased to announce that its wholly-owned subsidiary, DEFTECH had accepted the Letter of Award dated 23 February 2011 from the Government of Malaysia to design, develop, manufacture, commission, supply and delivery of two hundred and fifty seven (257) units of twelve (12) variants of the 8 x 8 Armoured Wheeled Vehicles (AWV) (“Contractâ€Â). The Contract valued at RM7.55 billion is for a period of 7 years commencing from 2011.
DEFTECH, via this Contract, will spur and enhance the growth of the Malaysian economy through an economic enhancement program which consists of transfer of advanced defence technologies from its technology partners and original equipment manufacturers (“OEMâ€Â), research & development and local vendors development.
DEFTECH will also own its first intellectual property rights on armoured wheeled vehicle systems and sub-systems. Many new local OEMs will be created through direct and indirect foreign investments during the duration of the Contract and this will generate increased employment for the local defence industry.
Close collaboration with its technology partners and principal OEMs will also enhance the capabilities and knowledge of not only DEFTECH“s employees but
create a knowledgeable workforce for the local defence industry including acquiring competencies in project management, supply chain management particularly defence business processes as well as systems engineering, amongst others.
The Contract will not have any material effect on the earnings, gearing and net assets of DRB-HICOM Group for the financial year ending 31 March 2011. However, the Contract will contribute positively to the future earnings of the Group.
