desirable sporty Satria Neo. The Group also has in its portfolio, the world-renowned Lotus sports...

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Transcript of desirable sporty Satria Neo. The Group also has in its portfolio, the world-renowned Lotus sports...

  • PROTON SHARES IN MALAYSIA’S 50TH YEAR CELEBRATIONS

    The Malaysian flag flying resplendent, symbolically leads the way

    for a country and her people celebrating 50 years of nationhood.

    As PROTON carries the mantle of national car manufacturer, the

    2007 Annual Report is a reflection of our commitment to grow

    alongside Malaysia, with the people of the Group playing an

    integral part.

    Malaysiaku Gemilang.

    Individuals on the cover are staff from the various divisions of the

    PROTON Group of companies.

  • 06 Corporate Mantra & Core Values

    08 Financial Calendar

    09 Key Financial Indicators

    10 Summary of Financial Highlights

    for Five Years

    14 Corporate Profile

    18 Awards & Recognition

    Contents

    20 Corporate Information

    22 Group Operations

    24 Profile of Directors

    32 Senior Management

    36 Chairman’s Statement

    48 Managing Director’s Review

  • 58 Operations Review

    96 Statement on

    Corporate Governance

    111 Additional Compliance Information

    114 Statement on Internal Control

    118 Risk Management

    124 Calendar of Events 2006 - 2007

    134 Statutory Financial Statements

    224 Shareholdings Statistics

    227 Properties Owned by

    PROTON Group

    233 Share Price and Volume Traded

    234 Notice of Annual General Meeting

    236 Statement Accompanying the

    Notice of Annual General Meeting

    Form of Proxy

    PROTON Holdings Berhad

  • PROTON in Malaysia PROTON WAJA

  • PROTON 2007 ANNUAL REPORT6 corporate mantra & core values

    CORE IDEOLOGY

    The PROTON Way

    PROTON employees are dedicated to the Group's long-term success. Every PROTON employee shall operate under the Group's shared values and rely on these values to guide their behaviour with each other and the customers. These values form the foundation of how we work and conduct business.

    AUDACIOUS GOAL

    Driving Malaysia's transformation into a leader in technology

    and quality.

    VIVID DESCRIPTION

    We deliver innovative and superior quality products and services.

    Our brands inspire confidence and pride.

    PURPOSE

    We are a passionate group of people working together, creating

    exhilarating products and services for global markets, synonymous

    with great styling, innovation and leading technology.

  • PROTON 2007 ANNUAL REPORT 7 corporate mantra & core values

    QUALITY

    We make products that work the first time, every time.

    CUSTOMER FOCUS

    Customers are the source of our income. We deliver on our

    promises to our customers’ satisfaction

    INNOVATION

    We challenge convention, always seeking new and better ways

    of doing things. We view change as opportunity.

    TEAMWORK

    We trust, respect and share knowledge to foster teamwork at

    the workplace.

    SPEED

    We have a “can-do” attitude and will not rest until the problem

    is solved. We have an inherent sense of urgency in everything

    we do.

    CARING

    As a responsible corporate citizen, we invest in safety, health

    and the environment.

  • • 29 August 2006 Unaudited First (1st) Quarter results for the period ended

    30 June 2006

    • 8 September 2006 Third (3rd) Annual General Meeting

    • 14 September 2006 Entitlement date for the final dividend of 5 sen (tax exempt)

    for the financial year ended 31 March 2006.

    • 13 October 2006 Payment of the tax exempt dividend of 5 sen for the

    financial year ended 31 March 2006

    • 30 November 2006 Unaudited Second (2nd) Quarter results for the period

    ended 30 September 2006

    • 27 February 2007 Unaudited Third (3rd) Quarter results for the period

    ended 31 December 2006

    • 31 May 2007 Unaudited Fourth (4th) Quarter results for the period

    ended 31 March 2007

    • 31 July 2007 Audited accounts for the financial year ended 31 March 2007

    • 15 August 2007 Notice of 4th Annual General Meeting

    • 6 September 2007 4th Annual General Meeting

    PROTON 2007 ANNUAL REPORT8 financial calendar

  • PROTON 2007 ANNUAL REPORT 9 key financial indicators

    2003 2004 2005 2006 2007

    197.7

    92.9 80.6

    8.5

    BASIC EARNINGS PER SHARE (Sen)

    2003 2004 2005 2006 2007

    9.46 9.52 10.08

    10.67 10.69

    NET ASSETS PER SHARE (RM)

    2003 2004 2005 2006 2007

    87.9 93.3

    137.3

    54.9

    27.5

    DIVIDEND PAID (RM’ Million)

    2003 2004 2005 2006 2007

    4,195.1 4,291.7

    4,611.8 4,916.9 4,908.7

    RETAINED PROFITS CARRIED FORWARD (RM’ Million)

    -107.3

  • PROTON 2007 ANNUAL REPORT10 summary of financial highlights for five years

    BALANCE SHEET AS AT 31 MARCH

    RM Million 2007 2006 2005 2004 2003 (Restated) (Restated) (Restated) (Restated)

    Non-Current Assets

    Property, plant and equipment 3,179.4 3,312.9 3,299.0 2,890.1 2,203.5

    Goodwill 29.0 29.0 29.0 29.0 29.0

    Other intangible 169.1 18.0 14.3 18.3 17.9

    Associated companies 169.8 160.4 165.6 171.9 146.9

    Jointly controlled entities 223.6 245.3 251.8 108.9 75.2

    Other long term investments 10.4 10.4 6.3 6.3 6.3

    Deferred tax assets - 105.8 38.4 46.6 25.7

    3,781.3 3,881.8 3,804.4 3,271.1 2,504.5

    Current Assets

    Inventories 1,273.6 1,389.0 967.1 795.8 813.6

    Receivables 1,192.0 1,244.0 1,403.2 930.0 822.5

    Current investments 73.4 212.0 201.5 182.0 166.4

    Deposits, bank and cash balances 626.5 1,586.0 2,454.7 2,877.4 3,713.7

    3,165.5 4,431.0 5,026.5 4,785.2 5,516.2

    Total Assets 6,946.8 8,312.8 8,830.9 8,056.3 8,020.7

  • PROTON 2007 ANNUAL REPORT 11 summary of financial highlights for five years

    BALANCE SHEET AS AT 31 MARCH

    RM Million 2007 2006 2005 2004 2003 (Restated) (Restated) (Restated) (Restated)

    Equity and Liabilities

    Share capital 549.2 549.2 549.2 549.2 549.2

    Other reserves 389.7 412.7 393.8 406.1 421.8

    Retained profits 4,291.7 4,908.7 4,916.9 4,611.8 4,195.1

    Equity attributable to equity holders of the parent 5,230.6 5,870.6 5,859.9 5,567.1 5,166.1

    Minority interest - - 0.3 - 1.6

    Total Equity 5,230.6 5,870.6 5,860.2 5,567.1 5,167.7

    Non-Current Liabilities

    Long term liabilities 181.6 100.3 759.6 447.4 221.3

    Deferred tax liabilities 0.8 0.8 1.1 1.0 1.0

    182.4 101.1 760.7 448.4 222.3

    Current Liabilities

    Payables 1,531.6 2,324.2 2,207.4 1,900.5 2,438.4

    Taxation 2.2 16.9 2.6 140.3 192.3

    1,533.8 2,341.1 2,210.0 2,040.8 2,630.7

    Total Liabilities 1,716.2 2,442.2 2,970.7 2,488.2 2,853.0

    TOTAL EQUITY AND LIABILITIES 6,946.8 8,312.8 8,830.9 8,056.3 8,020.7

  • PROTON 2007 ANNUAL REPORT12 summary of financial highlights for five years

    INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH

    RM Million 2007 2006 2005 2004 2003 (Restated) (Restated) (Restated) (Restated)

    Revenue 4,911.8 7,796.9 8,483.3 6,361.2 9,268.0

    (Loss)/Profit before taxation (618.1) 18.0 399.3 556.2 1,352.7

    (Loss)/Profit after taxation (589.5) 46.7 442.4 510.3 1,086.0

    Retained profit attributable to shareholders 4,319.2 4,963.6 5,054.2 4,705.1 4,283.0

    Dividend (27.5) (54.9) (137.3) (93.3) (87.9)

    Retained profit carried forward 4,291.7 4,908.7 4,916.9 4,611.8 4,195.1

    SHARE INFORMATION

    2007 2006 2005 2004 2003

    Per Share

    Basic (loss) earnings (sen) (107.3) 8.5 80.6 92.9 197.7

    Tax-exempt dividend paid 5.0 10.0 25.0 17.0 16.0

    Net assets 9.52 10.69 10.67 10.08 9.46

    Issued share capital 549,213 549,213 549,213 549,213 549,213

  • PROTON 2007 ANNUAL REPORT14 corporate profile

  • PROTON was incorporated on 7 May 1983 with three primary national policy objectives: • To spearhead the development of component

    manufacturing industries, • To acquire/upgrade technology and industrial skills

    within the automotive manufacturing industry, • To strengthen the international competitiveness of

    Malaysia's industrial capability.

    PROTON 2007 ANNUAL REPORT 15 corporate profile

  • PROTON commands a substantial share of the domestic market

    for passenger cars and over the years has been building up

    distribution networks in key market centers across the four regions:

    • United Kingdom / Western Europe, • the Middle East, • South-East Asia, and • Australasia.

    The business of the Group encompasses engineering consultancy,

    manufacturing, distribution, financial services and property

    investments.

    The Group designs and produces cars for diverse consumer

    preferences. The portfolio of PROTON models includes the reliable

    family-sedan Waja, the stylish Gen.2, the versatile Arena, the

    proven Saga and Wira range, the fun-to-drive Savvy and the

    desirable sporty Satria Neo. The Group also has in its portfolio, the

    world-renowned Lotus sports cars, with models such as Elise,

    Esprit, Exige and Europa. The