annual report proton

PERUSAHAAN OTOMOBIL NASIONAL BERHAD

Annual Report Laporan Tahunan2004

Performance Review

Chairmans Statement 146Perutusan Pengerusi 146

Group CEOs Review of Business Operations 156Tinjauan Operasi Ketua Pegawai Eksekutif

Kumpulan 156

Five Years Financial Highlights 180Ringkasan Kewangan untuk Lima Tahun 180

Key Financial Indicators 186Petunjuk Kewangan Utama 186

Financial Calendar 187Takwim Kewangan 187

Share Price and Volume Traded 188Harga Saham dan Saham Diniagakan 188

Awards and Recognition 189Anugerah dan Pengiktirafan 189

p e n i l a i a n p r e s t a s i

CHAIRMANS

Y.Bhg. Datuk Abu Hassan bin KendutChairman / Pengerusi

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INTRODUCTION

On behalf of the Board of Directors, I am pleased to present the annual report ofPerusahaan Otomobil Nasional Berhad for the year ended 31 March 2004, preparedin accordance with the applicable approved accounting standards in Malaysia andthe provisions of the Companies Act 1965.

CORPORATE REORGANISATION

On 27 May 2003, the Board announced a proposed Corporate Reorganisation,which was subsequently approved by the shareholders and regulatory authorities.On 5 April 2004, all shareholders of Perusahaan Otomobil Nasional Berhadexchanged their ordinary shares of RM1.00 each in the Company for new ordinaryshares of RM1.00 each in PROTON Holdings Berhad. With the exchange of shares,PROTON Holdings Berhad became the shareholder of Perusahaan OtomobilNasional Berhad and the ultimate holding company of the PROTON Group.

On 16 April 2004, the shares of Perusahaan Otomobil Nasional Berhad weredelisted and PROTON Holdings Berhad assumed the listing status on the BursaMalaysia Securities Berhad. PROTON Holdings Berhad was incorporated on 28 July2003 and remained dormant until the exchange of shares on 5 April 2004. The firstannual general meeting of PROTON Holdings Berhad will be held on 29 September2004 to approve the financial statements for the period ended 31 March 2004.

The Corporate Reorganisation has streamlined the business activities into five corebusiness divisions and created a Group structure that would operate and competemore effectively in an increasingly competitive environment.

TATEMENTPERUTUSAN PENGERUSIS

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Chairmans StatementPerutusan Pengerusi

PENGENALAN

Bagi pihak Lembaga Pengarah, saya amat berbesar hati dapat membentangkanlaporan tahunan Perusahaan Otomobil Nasional Berhad bagi tahun berakhir 31 Mac 2004, yang disediakan berdasarkan piawaian perakaunan yang diiktiraf diMalaysia dan peruntukan Akta Syarikat 1965.

PENYUSUNAN SEMULA KORPORAT

Pada 27 Mei 2003, Lembaga Pengarah telah mengumumkan satu cadanganPenyusunan Semula Korporat, yang mana telah diluluskan oleh pemegang sahamdan pihak berkuasa. Pada 5 April 2004, semua pemegang saham PerusahaanOtomobil Nasional Berhad telah menukarkan saham biasa mereka bernilai RM1.00sesaham dalam Syarikat dengan saham biasa baru bernilai RM1.00 sesaham dalamPROTON Holdings Berhad. Dengan penukaran saham tersebut, PROTON HoldingsBerhad menjadi pemegang saham Perusahaan Otomobil Nasional Berhad dansyarikat induk tertinggi Kumpulan PROTON.

Pada 16 April 2004, saham Perusahaan Otomobil NasionalBerhad telah tidak lagi tersenarai di Bursa Malaysia SecuritiesBerhad dan status penyenaraian tersebut diambil alih olehPROTON Holdings Berhad. PROTON Holdings Berhad yangditubuhkan pada 28 Julai 2003 kekal tidak beroperasi sehinggapenukaran saham pada 5 April 2004. Mesyuarat agungpertama PROTON Holdings Berhad akan diadakan pada 28 September 2004 untuk meluluskan penyata kewangan bagitahun berakhir 31 Mac 2004.

Penyusunan semula Korporat telah menyelaraskan aktiviti-aktiviti perniagaan kepada lima divisyen utama dan telahmembentuk satu struktur Kumpulan yang mampu beroperasidan bersaing dengan lebih berkesan di dalam suasanapersaingan yang semakin hebat.

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COMPETITIVE BUSINESS ENVIRONMENT

The operating environment for the year underreview was both difficult and challenging. Thedomestic passenger car market experienced adecline of 11 per cent as buyers adopted a waitand see attitude pending the announcement ofreduced tariffs by the government in compliancewith the Asean Free Trade Agreement. Totalsales of passenger cars in 2003 declined from359,934 units to 319,847 units. The climate ofuncertainty also adversely affected Protonsmarket share as customers held back purchasesin anticipation of lower prices. Aggressivemarketing and the launch of new models bycompetitors were also factors that led to thedecline in market share.

For exports, the adverse economic impact anduncertainty arising from the Iraq War affectedsales to the Middle East, our largest overseasmarket. Sales in the United Kingdom andAustralia also slowed as customers awaited thearrival of Protons new models to replace theexisting ageing product range.

SUASANA PERDAGANGAN YANGKOMPETITIF

Keadaan operasi untuk tahun yang diulas adalahamat mencabar dan sukar. Pasaran keretatempatan mengalami penurunan sebanyak 11%akibat daripada pembeli yang mengambil sikaptunggu dan lihat terhadap pengumumankerajaan untuk mengurangkan kadar tarif,bersesuaian dengan Perjanjian PerdaganganBebas Asean. Jumlah jualan kereta tempatanmerosot kepada 319,847 unit pada tahun 2003berbanding 359,934 unit pada tahun sebelumnya.Sikap pelanggan yang menangguh pembeliankerana mengharapkan penurunan hargamenyebabkan iklim yang tidak menentu danmemberi kesan kepada penguasaan pasaranProton. Aktiviti pemasaran yang agresif olehpesaing dan pelancaran model terbaru merekajuga merupakan faktor kepada penurunanpasaran penguasaan.

Bagi pasaran ekspot, keadaan ekonomi yangtidak menentu berpunca dari perang Iraq telahmemberi kesan terhadap jualan di Timur Tengahyang merupakan pasaran terbesar luar negarakita. Di United Kingdom dan Australia pula,jualannya amat lembab akibat dari sikappelanggan menungggu pelancaran model-modelterbaru Proton bagi menggantikan produk yangsedia ada.

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FINANCIAL PERFORMANCE

Amidst a weak domestic market and slowdown in exports,Proton recorded a lower Group profit after tax of RM521million, compared to RM1,118 million in the last financialyear. This was achieved on the back of a thirty per centdecline in turnover from RM9.27 billion to RM6.47 billion.Earnings per share was lower at 92.9 sen compared to201.9 sen previously.

At the Company level, revenue declined by 31% to RM5.26billion compared to RM7.67 billion in the previous year.Consequently, profit after tax dropped to RM321.8 millionfrom RM772.3 million. Proton Edar Sdn Bhd, a whollyowned subsidiary and the domestic distributor of Protoncars, recorded a profit before tax of RM127 million on aturnover of RM5.9 billion. Lotus Group InternationalLimited recorded a net profit of 0.2m, a majorturnaround from the losses made over the last three years.

DIVIDENDS

The Directors have recommended the payment of a finaltax-exempt dividend of 10 sen a share. The total dividendspaid/payable for the financial year ended 31 March 2004would amount to 15 sen per share or a total ofRM82,382,300 (2003: 20 sen per share or a total tax-exempt dividend payout of RM109,841,000). The finaldividends will be paid to Proton Holdings Berhad.

PRESTASI KEWANGAN

Di tengah-tengah keadaan pasaran tempatan yang lemahdan ekspot yang merosot, Proton telah mencatatkankeuntungan selepas cukai Kumpulan yang rendah sebanyakRM521 juta, berbanding RM1,118 juta pada tahun kewangansebelumnya. Ini dicapai berikutan dengan penurunansebanyak 30% jualan iaitu dari RM9.27 bilion kepadaRM6.47 bilion. Pendapatan sesaham adalah lebih rendahiaitu 92.9 sen berbanding 201.9 sen pada tahun sebelumnya.

Pada peringkat Syarikat pendapatan menurun sebanyak31% kepada RM5.26 bilion berbanding RM7.67 bilion padatahun sebelumnya. Akibatnya keuntungan selepas cukaimenurun kepada RM321.8 juta dari RM772.3 juta. ProtonEdar Sdn. Bhd., syarikat subsidiari milik penuh Proton yangmerupakan wakil pengedar tempatan kereta Proton, telahmencatatkan keuntungan sebelum cukai sebanyak RM127juta dari jumlah jualan sebanyak RM5.9 bilion. Lotus GroupInternational Limited pula mencatatkan keuntungan bersihberjumlah 0.2 juta, yang merupakan satu pencapaianberbanding kerugian untuk tiga tahun yang lepas.

DIVIDEN

Lembaga Pengarah telah mencadangkan bayaran dividenakhir yang dikecualikan cukai sebanyak 10 sen sesaham.Jumlah dividen dibayar/akan dibayar bagi tahun kewanganberakhir 31 Mac 2004 akan berjumlah 15 sen sesaham atausejumlah RM82,382,300 (2003: 20 sen sesaham atausejumlah dividen dibayar yang dikecualikan sebanyakRM109,841,000). Dividen akhir akan dibayar kepada ProtonHoldings Berhad.

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OPERATIONS REVIEW

PROTON

During the financial year, Proton launched a number ofnew model variants in the domestic market in anticipationof weaker demand and a general slowdown in passengercar sales with the impending implementation of AFTA. TheIswara ST, Wira SE and Perdana CC received encouragingresponse and helped revitalise the products as theyapproach the end of their lifecycle. As a result, Protonsmarket share decline was contained at 45%.

In February 2004, the much-awaited Gen.2 was launched inthe domestic market to overwhelming response. The Gen.2is a sporty four-door hatchback with innovative styling andleading-class ride and handling. Developed from Protonsown platform, the Gen.2 will spearhead the launch of aseries of new products over the next two years. More than13,000 bookings have been received with a waiting periodof three months or more. Following the success of the carin the domestic market, the launch of the Gen.2 inSingapore, Brunei, UK and Australia has been scheduledfor August 2004.

Protons own engine family, the Campro, commencedcommercial production in January 2004 and powers theGen.2. This marked a major milestone for Proton, as itbecame a truly independent automotive manufacturerwith its own cars and engines.

ULASAN OPERASI

PROTON

Pada tahun kewangan ini, Proton telah melancarkanbeberapa model baru dalam pasaran tempatan berdasarkanjangkaan terhadap permintaan yang semakin lemah danjuga penurunan jualan kereta penumpang denganperlaksanaan AFTA. Iswara ST, Wira SE dan Perdana CCtelah mendapat reaksi yang menggalakkan dan membantumemulih semula produk tersebut yang hampir sampai kepenghujung pusingan hayatnya. Akibatnya, penurunanpenguasaan pasaran Proton dapat bertahan pada 45%.

Dalam bulan Februari 2004, produk yang ditunggu-tunggu,Gen.2 telah dilancarkan dalam pasaran tempatan danmendapat sambutan yang memberangsangkan daripelanggan. Gen.2 merupakan sebuah kereta hatchbackempat pintu yang eksklusif dengan gaya inovatif dan kelaspemanduan dan pengendalian yang tinggi. Dibangunkandari platform Proton sendiri, Gen.2 bakal menerajui siripelancaran produk baru dalam tempoh dua tahun yangakan datang. Lebih dari 13,000 tempahan diterima dengantempoh menunggu 3 bulan atau lebih. Berikutan darikejayaannya di dalam pasaran tempatan, Gen.2 dijadualkanakan dilancarkan di Singapura, Brunei, UK dan Australiapada Ogos 2004.

Campro iaitu famili enjin keluaran Proton sendiri, telahmemulakan pengeluaran komersialnya pada Januari 2004dan dipasang pada Gen.2. Ini menandakan satu perubahanbesar bagi Proton yang berkemampuan dalam menjadipengilang otomotif yang mengeluarkan kereta danenjinnya sendiri.

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The new Tanjung Malim factory, with a capacity of 150,000units when fully commissioned, commenced operationsfrom January 2004. The factory employs a higher level ofautomation and adopts flexible manufacturing processescapable of producing cars of the highest quality. All futurenew models will be manufactured at this new state-of-the-art factory.

In recognition of the Companys continuous drive forquality improvement and the implementation of world-class quality systems, Proton was awarded the 2004 PrimeMinisters Quality Management Excellence Award. In the2004 UK J.D. Power Customer Satisfaction Survey, Protontied for 10th position in the Overall Top Brand Categoryout of 33 global brands and was placed second in DealerService Satisfaction, just behind Lexus.

In February 2004, Proton Commerce Sdn. Bhd., an autofinance joint venture established with the Commerce AssetGroup, one of the countrys leading financial institutions,commenced operations. The joint venture will provide one-stop financing to Proton customers and is expected tocontribute significantly to Group revenue in the nearfuture.

LOTUS

During the year Lotus Engineering steadily built up itscustomer base following the successful delivery of anumber of engineering projects. A new Engineering officeopened in China at the beginning of 2004 to forge closerlinks to existing and potential customers. This brings thenumber of Lotus Engineerings offices around the world tofive (UK, Germany, Malaysia, China and USA).

Kilang baru Tanjung Malim dengan kapasitinya 150,000unit mula beroperasi pada Januari 2004. Kilang tersebutmenggunakan tahap automasi yang tinggi danmengadaptasi proses pengilangan yang fleksibel sertamampu mengeluarkan kereta yang berkualiti tinggi.Semua pengeluaran model baru pada masa akan datangakan dikeluarkan di kilang baru yang serta canggih ini.

Dalam mengiktiraf usaha berterusan Syarikat untukmeningkatkan kualiti dan perlaksanaan sistem kualiti bertarafdunia, Proton telah dianugerahkan dengan AnugerahKecemerlangan Pengurusan Kualiti Perdana Menteri bagitahun 2004. Pada tahun 2004, indeks J.D. Powers CustomerSatisfaction Survey di UK telah meletakkan Proton terikatdi tangga ke-10 kategori keseluruhan, daripada 33 jenamaglobal yang lain. Proton juga menduduki tempat keduadalam indeks Dealer Service Satisfaction, hanya dibelakang Lexus.

Pada Februari 2004, Proton Commerce Sdn. Bhd., sebuahsyarikat pembiayaan kenderaan telah ditubuhkan secarausahasama dengan Commerce Asset Group, salah sebuahinstitusi kewangan yang terkemuka di negara ini, telahmenjalankan operasinya. Usahasama ini menyediakankaedah pembiayaan setempat kepada pelanggan Protondan dijangkakan akan memberi sumbangan ketara kepadapulangan Kumpulan di masa yang terdekat.

LOTUS

Pada tahun semasa, Lotus Engineering telah membinarangkaian pelanggannya sendiri berikutan kejayaannyadalam menguruskan beberapa projek kejuruteraan. Sebuahpejabat kejuruteraan yang baru telah dibuka di Chinapada pemulaan 2004 bertujuan untuk merapatkan lagihubungan pelanggan yang sedia ada dan juga pelangganyang berpotensi. Ini membawa kepada peningkatanbilangan pejabat Lotus Engineering di lima negara (UK,Jerman, Malaysia, China dan Amerika Syarikat).

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In the UK, Lotus Cars concentrated on producing newmodel variants. The Elise, with a new hi-tech 189hp enginemade its debut in the US at the Los Angeles Auto Show.The first review by the media of the new US Lotus Elise isextremely positive and the first cars will be delivered inJune 2004. A non-USA version of this 189hp Elise(designated Elise 111R) was launched into the European,Asia Pacific and Australian markets in January 2004. InMarch 2004, the new Lotus Exige was unveiled at theGeneva Motorshow. The Lotus Elise 111R won the titleBest Sportscar 2004 awarded by BBC Top Gear Magazine.

CORPORATE GOVERNANCE

Our statement on Corporate governance is found on pages44 to 67. There were no sanctions and/or penaltiesimposed on the Company and its subsidiaries, Directors ormanagement, by the relevant regulatory bodies.

RELATED PARTY TRANSACTIONS

Significant related party transactions of the Group duringthe period are disclosed in Note 35 to the financialstatements.

Di UK, Lotus Cars telah menumpukan pengeluarannyakepada pelbagai model baru. Elise, yang mempunyai enjinhi-tech 189hp telah diperkenalkan buat pertama kalinya diAmerika Syarikat di Los Angeles Auto Show. Ulasanpertama yang dibuat oleh media terhadap Lotus EliseAmerika Syarikat yang baru menunjukkan tindakbalas yangpositif dan penghantaran kereta pertama dijadualkan padaJun 2004. Versi bukan Amerika Syarikat untuk 189hp Elise(reka bentuk Elise 111R) telah dilancarkan di pasaranEropah, Asia Pasifik dan Australia pada bulan Januari 2004.Pada Mac 2004, Lotus Exige yang baru telah dipamerkandi Geneva Motorshow. Lotus Elise 111R telah memenangianugerah Best Sportscar 2004 yang dianugerahkan olehBBC Top Gear Magazine.

URUS TADBIR KORPORAT

Penyata untuk urus tadbir korporat boleh didapati padamuka surat 44 sehingga 67. Tiada tindakan undang-undangdan/atau penalti dikenakan ke atas Syarikat dan syarikatsubsidiari, Para Pengarah atau pengurusan oleh pihak yangberkuasa.

TRANSAKSI PIHAK BERKAITAN

Transaksi ketara pihak berkenaan untuk Kumpulan padatahun semasa dinyatakan dalam Nota 35 dalam penyatakewangan.

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RESEARCH AND DEVELOPMENT

The Group continues to research new technologies withthe ultimate aim to put these innovations into productionthrough partnerships with Tier One Suppliers or OEMcustomers. Two such advancements likely to see productionare engine technology AVT (Active Valve Train) and chassistechnology VVA (Versatile Vehicle Architecture). The Grouphas also invested significantly on the development of newinnovative products to meet the challenges of the marketplace. During the financial year, the Group investedRM542.9 million (2003: RM413 million) in research anddevelopment.

PROSPECT

Proton car sales in the domestic market for the firstquarter of financial year 2004/05 recorded a year on yearincrease of 10%, reflecting renewed interest and improvedbuying sentiment. Orders for the Gen.2 have continued tobe strong and production will be increased to 5,000 unitsfrom October 2004 with the introduction of a second shiftat the Tanjung Malim factory. The Waja 1.6 Enhancement,which was launched in July 2004, has also spurred demandand increased orders. To provide customers with greaterchoice, Proton will introduce a new two-door hatchbackand a small four-door sedan at the end of 2004 and inearly 2005 respectively.

PENYELIDIKAN DAN PEMBANGUNAN

Kumpulan terus meningkatkan penyelidikan dalamteknologi baru dengan objektif utama untuk mengaplikasipenemuan baru dalam pengeluaran melalui gabungandengan pembekal-pembekal Tier One atau pelangganOEM. Dua kemajuan yang dilihat boleh diketengahkandalam pengeluaran adalah teknologi enjin AVT (ActiveValve Train) dan teknologi chassis VVA (Versatile VehicleArchitecture). Kumpulan juga telah melabur secara ketaradalam pembangunan pembaharuan produk baru untukmenghadapi cabaran di dalam pasaran. Pada tahun semasa,Kumpulan telah melaburkan sejumlah RM542.9 juta (2003:RM413 juta) dalam penyelidikan dan pembangunan.

PROSPEK

Jualan kereta Proton dalam pasaran tempatan untuk sukupertama tahun kewangan 2004/05 mencatat peningkatankepada 10% dibandingkan dengan tempoh yang samatahun lepas, kesan daripada minat dan peningkatansentimen pembelian. Permintaan untuk GEN.2 semakinmeningkat dan pengeluaran akan ditingkatkan kepada5,000 unit bermula pada bulan Oktober 2004 denganpermulaan dua shif di kilang Tanjung Malim. Model Waja1.6 Enhancement yang dilancarkan pada bulan Julai2004 juga telah meningkatkan permintaan dan tempahan.Untuk menyediakan pilihan yang lebih meluas kepadapelanggan, Proton akan memperkenalkan kereta dua pintuhatchback dan kereta bersaiz kecil empat pintu sedanpada penghujung tahun 2004 dan juga pada awal tahun2005.

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Chairmans StatementPenyata Pengerusi


In the export market, the easing of political tension in theMiddle East has helped to improve sales to the regionalthough the volume is not expected to be significant inthe short term. Sales to the other regions are expected toimprove with the introduction of new models.

Baring any unforeseen circumstances, the Directors are ofthe view that the improved domestic sales performanceand introduction of new models will have a positiveimpact on the Group performance in the current financialyear.

ACKNOWLEDGEMENT

On behalf of the Board of Directors, I would like to thankour shareholders, customers, business associates andregulatory authorities for their continuing support andconfidence in Proton. I wish to extend our appreciation tothe management team and all employees of the Group fortheir contribution during the financial year. The success ofthe organisation depends ultimately on their dedicationand commitment towards the shared mission andobjectives.

While we acknowledge that the road ahead will be roughwith the impending liberalisation of the automotive sector,we are confident that we will succeed in our endeavour.We believe that your Company will thrive withcompetition and grow stronger because of it.

Datuk Abu Hassan bin KendutChairman

Dari segi pasaran ekspot pemulihan ketegangan politik diTimur Tengah telah membantu dalam meningkatkan jualanke rantau itu walaupun bilangan yang dijangkakan tidakberapa ketara dalam jangka masa pendek. Jualan kerantau-rantau lain dijangka meningkat dengan pengenalanmodel baru.

Berdasarkan keadaan yang tidak dapat diramal, ParaPengarah berpandangan bahawa dengan meningkatkanjualan pasaran tempatan dan pengenalan model-modelbaru dapat memberi impak yang positif kepada prestasiKumpulan pada tahun kewangan semasa.

PENGHARGAANBagi pihak Lembaga Pengarah, saya ingin merakamkanucapan terima kasih kepada pemegang-pemegang saham,pelanggan-pelanggan, rakan-rakan perniagaan dan pihakberkuasa di atas sokongan yang berterusan danberkayakinan terhadap Proton. Saya juga ingin merakamkansetinggi-tinggi penghargaan kepada pihak pengurusan dansemua pekerja-pekerja Kumpulan di atas sumbanganmereka pada tahun kewangan ini. Kejayaan organisasi inibergantung sepenuhnya di atas dedikasi dan komitmenmereka dalam merealisasikan objektif dan misi bersama.

Walaupun kami menyedari bahawa perjalanan ke hadapanpenuh cabaran dengan liberalisasi sektor otomotif, kamiberkeyakinan bahawa kami akan berjaya di dalam usaha-usahakami. Kami percaya Syarikat anda akan terus ke hadapanmenghadapi saingan dan akan menjadi lebih kukuh.

Datuk Abu Hassan bin KendutPengerusi

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BUSINESS OBJECTIVES

In conducting our business, PROTON is guidedby the interests of the shareholders, customers,business associates, employees and thecommunity. The Group needs capital from itsshareholders to conduct its business and expandto enhance returns. But capital can only be usedprofitably in the long term if customers aresatisfied with the Groups performance. This inturn calls for excellent products and services,which are not possible without capable businessassociates and motivated employees.

Customers, shareholders, business associates andemployees are at the same time citizens in aninternational community. The PROTON Groupsupports and encourages environmental,cultural, sports and educational initiatives. Inthis way, added value is not only created for theGroup but for the community and all interestgroups as well.

In order to bring more balance into how wemeasure achievements and progress, Proton hasstarted to implement the balanced scorecardsystem for the Group. The design of thescorecard defines our financial objectives alongthe lines of the strategic goals.

OBJEKTIF PERNIAGAAN

PROTON berpandukan kepada kepentinganpelbagai pihak semasa menjalankan urusanperniagaannya seperti pemegang saham,pelanggan, rakan niaga, pekerja dan jugamasyarakat. Kumpulan memerlukan modaldaripada pemegang-pemegang saham untukberurusniaga dan seterusnya berkembang bagimeningkatkan pulangan. Walau bagaimanapundalam jangka masa panjang, modal hanya bolehdigunakan secara untung jika pelangganberpuashati dengan prestasi Kumpulan. Inimemerlukan produk dan perkhidmatan yangcemerlang dan ianya tidak boleh dicapai tanparakan niaga yang berkeupayaan tinggi danpekerja yang bersemangat tinggi.

Dalam masa yang sama pelanggan, pemegangsaham, rakan niaga dan juga pekerja adalahsebahagian daripada masyarakat antarabangsa.Kumpulan Proton menyokong dan menggalakaninisiatif-inisiatif bersifat persekitaran, kebudayaan,kesukanan dan pembelajaran. Dengan cara ini,nilai tambahan bukan sahaja dicipta untukKumpulan tetapi juga untuk masyarakat dansemua golongan yang berkepentingan.

Proton telah mula melaksanakan sistemimbangan kad skor untuk Kumpulan bagimenentukan bagaimana kami mengukurpencapaian dan kemajuan. Corak kad skormenyatakan objektif kewangan selaras denganmatlamat strategi.

Group CEOs Review of Business OperationsTinjauan Operasi Ketua Pegawai Eksekutif Kumpulan

Y.M. Tengku Tan Sri Dr. Mahaleel bin Tengku AriffGroup Chief Executive Officer /Ketua Pegawai Eksekutif Kumpulan

ROUP CEOS REVIEW OF BUSINESS OPERATIONSTINJAUAN OPERASI KETUA PEGAWAI EKSEKUTIF KUMPULANG

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We continue to seek new opportunities to add value tothe business, achieve operational excellence, enhance ourcorporate culture and align our corporate goals with theinterests of our shareholders and other stakeholders. Ourcore values drive our success as a transparent, accountableand ethical organisation.

COMPETITIVE OPERATING ENVIRONMENT

The global automotive landscape has become increasinglychallenging as growth stagnates and overcapacity reign inmany car plants around the world. Stocks of unsoldvehicles of up to 3.5 million within the US alone haveforced manufacturers to rationalise platforms andproduction. New environmental regulations and thedemands of workers unions have resulted in cost increaseswhilst the twin pressures of competition and risingconsumerism have forced car companies to reduce prices.As a result, margins are eroded leading to lower profits forsome and losses for others. The search for new areas ofgrowth is further intensified and the ASEAN region, thetraditional bastion of Japanese car companies, has becomethe focus of the Americans, Europeans and even Koreans.

Kami terus mencari peluang-peluang baru untukmempertingkatkan nilai perniagaan, mencapai operasiyang terbaik, mengembangkan budaya korporat danmenyelaraskan matlamat korporat kita dengan kepentinganpara pemegang saham dan lain-lain pemegangberkepentingan. Nilai teras kami menggerakkan kejayaankami sebagai sebuah organisasi yang telus, bertanggungjawabdan beretika.

SUASANA PERSAINGAN OPERASI

Industri otomotif global telah bertambah mencabardengan tidak meningkatnya pertumbuhan dan lebihanpengeluaran di dalam kebanyakkan kilang-kilang keretaserata dunia. Stok kereta yang tidak terjual meningkatkepada 3.5 juta di Amerika Syarikat sahaja memberitekanan kepada pengeluar-pengeluar untuk menyusunsemula platfom-platfom serta pengeluaran. Peraturan-peraturan baru persekitaran dan permintaan-permintaandaripada kesatuan-kesatuan pekerja telah menyebabkanpeningkatan dalam kos, manakala tekanan-tekanandaripada persaingan dan peningkatan dalam kepentinganpengguna membuatkan syarikat-syarikat kereta terpaksamenurunkan harga. Akibatnya, margin semakin berkurangdan membawa kepada keuntungan yang rendah kepadabeberapa pengeluar dan kerugian kepada yang lain.Pencarian kawasan-kawasan pertumbuhan yang barumakin meningkat dan kawasan ASEAN, secara tradisinyakawasan yang selamat bagi syarikat-syarikat kereta Jepun,telah menjadi fokus kepada syarikat-syarikat Amerika,Eropah dan juga Korea.

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During the financial year, uncertainty over theimplementation of the ASEAN Free Trade Agreementallowed foreign car companies to make inroads in thedomestic market. Sales of passenger cars experienced adecline as many prospective buyers adopted a wait andsee attitude in anticipation of the Governmentsannouncement on car tariffs. Many buyers were hoping fora drastic fall in car prices and delayed their purchasedecisions. In a weak market, aggressive marketing and thelaunch of new models by foreign car manufacturers werefactors that led to the erosion of the national cars marketshare.

For exports, the adverse economic impact and uncertaintyarising from the Iraq War affected sales to the MiddleEast, our largest overseas market. Sales in the UnitedKingdom and Australia also slowed as customers awaitedthe arrival of Protons new models to replace the existingageing product range.

Dalam tahun kewangan, ketidaktentuan ke atas perlaksanaanKawasan Perjanjian Perdagangan Bebas Asean memberipeluang kepada syarikat-syarikat kereta asing memasukipasaran tempatan. Penjualan kereta-kereta penumpangmengalami kemerosotan oleh kerana kebanyakkan bakal-bakal pembeli yang mengambil sikap tunggu dan lihatsebagai langkah berhati-hati terhadap pengumumankerajaan mengenai tarif kereta. Kebanyakkan pembelimengharapkan penurunan harga kereta yang mendadakdan menangguhkan keputusan untuk membeli kereta.Dalam pasaran yang lemah, pemasaran yang agresif danpelancaran model-model baru oleh pengeluar-pengeluarkereta asing adalah faktor utama yang menyebabkankemerosotan dalam penguasaan pasaran kereta tempatan.

Untuk pasaran ekspot, kesan daripada keadaan ekonomiyang sukar dan ketidaktentuan yang timbul daripadapeperangan Iraq memberi kesan ke atas penjualan diTimur Tengah, pasaran terbesar kita di seberang laut.Penjualan di United Kingdom dan Australia juga lembabkerana pelanggan-pelanggan menunggu ketibaan model-model Proton yang baru untuk menggantikan produk-produk lama yang sedia ada.

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Strong customer orientation and innovative, competitivelypriced products are the foundation of our business andessential to our success. We believe that vehicles offeringsuperior ride and handling, quality, safety and value, madeby a trusted company, have universal appeal. Our marketsare always changing, and so are the products we offer. Weanticipate trends, respond to changes through our productofferings and lead by developing new innovative features.Among the initiatives by PROTON is the introduction ofnew Malaysian developed and manufactured cars, whichare engineered to exhilarate and embedded with theworld-renowned Lotus ride and handling. The Protonproduct range includes many innovations to addressenvironmental and safety concerns.

Produk yang berorientasikan pelanggan, berinovasi dandengan harga yang berdaya saing adalah asas kepadaperniagaan kami dan adalah penting untuk kejayaan kami.Kami percaya bahawa kenderaan yang memilikipemanduan dan pengawalan yang lebih baik, berkualiti,selamat dan bernilai dan dibuat oleh syarikat yang diyakinimemilki ciri-ciri yang diingini semua. Pasaran kami seringberubah dan begitu juga produk yang kami tawarkan.Kami mengenalpasti perubahan citarasa, kami bertindakbalasdengan membawa perubahan melalui produk yang kamitawarkan dan kami mengetuainya melalui pembentukanproduk berinovasi. Di antara inisiatif-inisiatif yang diambiloleh Proton ialah pengenalan kereta-kereta baru yangdibangunkan dan dikilangkan di Malaysia yang memilikikecemerlangan kejuruteraan yang dilengkapi denganpemanduan dan pacuan Lotus yang terkenal di seluruhdunia itu. Produk-produk Proton merangkumi pelbagaipembaharuan dengan berkonsepkan mesra alam danberteraskan keselamatan.

PRODUCTS & SERVICESp r o d u k & p e r k h i d m a t a n

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During the year, Proton introduced the Perdana CC, avariant of the popular two litre large sedan. With arestyled front grille, new lamps and interior, the PerdanaCC is fitted with a 2.0 litre 6 cylinders DOHC engine withadaptive automatic transmission that incorporates fuzzylogic which enhances fuel efficiency and results in reducedexhaust emission levels.

In February 2004, a new addition to the product range,the stylish Gen.2 was launched. Designed and developedby Malaysians, the four-door hatchback is fitted withProtons very own engine, the 1.6 litre 4 cylinder DOHC 16valve Campro. Outstanding features of the Gen.2 includeagile handling, precise progressive steering response andextreme stability in cornering and changing lanes. Thebody strength on this car exceeds international safetyregulations and market requirements of the EuropeanCommunity (EC), Australian Design Rules and Gulf standards.Safety features include increased body rigidity, driver andpassenger airbags, brake assist, electronic brake forcedistribution and the vehicle tracking security system, Captor.

During the year Lotus Engineering steadily built up itscustomer base following the successful delivery of anumber of engineering projects. A new Engineering officeopened in China at the beginning of 2004 to forge closerlinks to existing and potential customers. This brings thenumber of Lotus Engineerings offices around the world tofive (UK, Germany, Malaysia, China and USA).

In February 2004, Proton Commerce Sdn. Bhd., an autofinance joint venture established with the Commerce AssetGroup, one of the countrys leading financial institutions,commenced operations. The joint venture will provide one-stop financing to PROTON customers and is expected tocontribute significantly to Group revenue in the near future.

Pada tahun semasa, Proton memperkenalkan Perdana CC,2 liter sedan yang bersaiz besar. Dengan gaya gril depan yangbaru, lampu dan rekaan terkini, Perdana CC dilengkapkandengan 2.0 liter 6 silinder dengan enjin DOHC dan denganinjap masa pelbagai dan penyesuaian transmisi otomatikdengan fuzzy logik yang menambah kecekapan penggunaanminyak dan pengurangan tahap keluaran asap ekzos.

Pada Februari 2004, Gen.2 telah dilancarkan denganpenambahan baru dari sudut gaya. Dengan rekaan danpembentukkan yang dibuat oleh Malaysia sendiri, dilengkapidengan empat pintu hatchback dan 1.6 liter 4 silinderdengan enjin DOHC valve Campro. Gen.2 mempunyaipacuan yang pantas dan mudah, cepat bertindakbalaspada pertukaran arah dan stabil dalam mengenalpastipertukaran laluan. Kekuatan badan kereta ini memenuhiperaturan keselamatan antarabangsa dan syarat-syaratpasaran Komuniti Eropah (EEC), Peraturan RekaanAustralia dan Piawai Gulf. Ciri-ciri keselamatan termasukbadan kereta yang kukuh, beg udara pemandu danpenumpang, bantuan brek, agihan kuasa brek elektronikdan sistem keselamatan pengesanan kenderaan, Captor.

Pada tahun semasa, Lotus Engineering telah membinarangkaian pelanggannya sendiri berikutan kejayaannyadalam menguruskan beberapa projek kejuruteraan. Sebuahpejabat kejuruteraan yang baru telah dibuka di Chinapada pemulaan 2004 dengan bertujuan untuk merapatkanlagi hubungan pelanggan yang sedia ada dan jugapelanggan yang berpotensi. Ini membawa peningkatankepada bilangan pejabat Lotus Engineering di lima negara(UK, Jerman, Malaysia, China dan AS).

Pada Februari 2004, Proton Commerce Sdn. Bhd., sebuahsyarikat yang membiayai kenderaan secara kawalanbersama Kumpulan Commerce Asset, sebuah institusikewangan yang terkemuka, telah memulakan operasinya.Kawalan bersama ini menyediakan satu kaedahpembiayaan setempat kepada pelanggan PROTON dandijangkakan akan memberikan keuntungan Kumpulanyang memuaskan di masa hadapan.

PROTON continued to intensify research in advancedtechnology in the areas of powertrain and lightweightmaterials. Research projects currently being undertakeninclude natural gas vehicle, engine cam profiling, electrichybrid vehicle, engine order cancellation, and engineactive valve train. A number of projects are also beingconducted through collaborations with Malaysian and UKuniversities with some funding provided by the Malaysiangovernment. These collaborations include the use ofalternative materials for passenger vehicles and thedevelopment of a new low cost flexible engine.

PROTON terus meningkatkan penyelidikan dalam teknologienjin dan bahan ringan. Pada masa ini projek penyelidikanyang sedang dijalankan termasuk kenderaan bergassemulajadi, enjin cam profiling, kenderaan kombinasiberletrik, enjin pembatalan pesanan dan enjin injapaktif. Beberapa projek juga sedang dikendalikan melaluikerjasama dengan universiti di Malaysia dan di UK denganperuntukan kewangan yang dibiayai oleh kerajaanMalaysia. Kerjasama ini termasuklah penggunaan berbagaibahan untuk kenderaan penumpang dan pembangunandalam enjin kos rendah yang fleksibel.

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RESEARCH & DEVELOPMENTp e n y e l i d i k a n & p e m b a n g u n a n


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For 2004, total development expenditure increasedsignificantly with work focused on the development ofnew models on a number of platforms including theleading edge Versatile Vehicle Architecture (VVA). The VVAreduces the time it takes to bring a new product tomarket and helps meet changing demand more quickly.Globally, we are moving towards shared technologies sothat vehicles can be differentiated while using commoncomponents. The reduction in development time willcreate greater efficiency and the standardisation will alsolead to greater economies of scale in purchasingcomponents.

Development has also begun on an aluminium-bodiedvehicle built on the VVA platform. Increased fuel efficiencyand power through weight reduction and materialrecyclability are key factors that have conspired togetherto promote the use of aluminium in vehicle bodystructures for high volume production.

Pada tahun 2004, jumlah perbelanjaan pembangunan telahmeningkat dengan membangunkan pelbagai platformtermasuklah platform yang boleh diubahsuai VersatileVehicle Architecture (VVA). Platform (VVA) ini mengurangkanmasa yang diambil untuk membawa produk baru kepasaran dan membantu membuat pembaharuan hasildaripada perubahan permintaan dengan lebih cepat. Di seluruh dunia, semua bergerak ke arah perkongsianteknologi supaya kenderaan masih boleh dibezakanwalaupun menggunakan komponen yang sama. Masapembangunan yang lebih cepat akan mencetuskankecekapan yang lebih tinggi dan penggunaan komponenyang sama mengurangkan kos melalui skala pembelianyang besar.

Pembangunan telah bermula terhadap pembinaan badankenderaan beraluminium pada platform VVA. Peningkatankecekapan minyak dan kuasa melalui pengurangan beratdan bahan kitaran semula adalah merupakan kuncipersepakatan bersama untuk memperkenalkan penggunaanaluminium di dalam struktur badan kenderaan untukpengeluaran yang tinggi.

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The production facilities in Malaysia recorded averageutilisation rates of 54% due to the weaker domesticmarket. Total production from the Malaysian plantswas 148,981 units whilst the UK Lotus plant in Norwichrecorded production of 2,763 units.

The state-of-the-art Tanjung Malim Plant commencedoperations in January 2004 and is expected to result insignificant savings because of lean production processesand the ability to shift production to different modelsrelatively quickly. The Flexible manufacturing systeminstalled in the plant will enable the Company torespond more quickly to changing customer demandwith faster changeover of models.

Kilang di Malaysia merekodkan kadar penggunaansetinggi 54% berdasarkan permintaan terhadap produkkita. Jumlah hasil pengeluaran bagi kilang di Malaysiapada tahun 2004 adalah 148,981 unit sementara kilangdi Lotus UK di Norwich merekodkan hasil pengeluaransebanyak 2,763 unit.

Kilang Tanjung Malim yang serba canggih telah mulaberoperasi dalam bulan Januari 2004 dan dijangkakanakan memberikan penjimatan yang ketara hasildaripada proses pengeluaran yang efisien dankeupayaan untuk menukar pengeluaran model-modelyang berlainan secara relatif dan cepat.

MANUFACTURINGp e r k i l a n g a n

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The Plant is capable of producing four models off threeplatforms. To achieve production flexibility, the Bodyfactory, for example, operates with several short flexiblelines capable of accommodating 3 different platformscomprising 9 separate models rather than the singlecontinuous line in the existing Shah Alam plant. On itsquality capability, the plant is designed with a direct passratio in excess of 85% compared with 60% for the ShahAlam plant and a World Best Practice ratio of 90%. Oncost efficiency capability, the new plant is designed for anoperation productivity ratio of 90% (Shah Alam Plant:85%; World Best Practice: 95%).

Proton has announced plans to acquire a plant inIndonesia to produce cars for the ASEAN market. The plantwill have an installed capacity of 30,000 units and willinitially produce the Wira model for the local market andexport to other ASEAN countries. In Vietnam, Proton isundertaking a study to determine the feasibility ofassembling the Arena at the joint venture plant, VinastarMotors, for the local market.

Kilang ini berkemampuan untuk mengeluarkan empatmodel dengan tiga platform serentak. Untuk mencapaipengeluaran yang fleksibel, bahagian pemasangan badansebagai contohnya beroperasi di tiga barisan pengeluaranyang fleksibel dan pendek dan mampu mengeluarkan 9 model daripada 3 platform dibandingkan dengan satubarisan yang panjang di kilang Shah Alam sekarang. Darisegi kualiti, kilang ini direka untuk mendapat nisbah teruslulus sebanyak 85% dibandingkan dengan 60% di ShahAlam dan 90% kilang terbaik dunia. Untuk menjimatkankos, kilang baru ini direka untuk mendapat nisbahproduktiviti sebanyak 90% (Shah Alam 85%; Terbaik diDunia 95%).

Proton telah megumumkan untuk memperolehi sebuahkilang di Indonesia bagi mengeluarkan kereta untukpasaran ASEAN. Kilang tersebut akan mempunyaikeupayaan sebanyak 30,000 unit dan pada dasarnya akanmengeluarkan model Wira untuk pasaran tempatan danuntuk di ekspot ke negara-negara ASEAN. Di Vietnam,Proton sedang membuat satu kajian bagi menentukankebolehlaksanaan pemasangan model Arena di kilangusahasama, Vinastar Motors untuk pasaran tempatan.

To be able to compete in a liberalised market, it is key to get thingsright in terms of customer satisfaction and quality. This involves apositive experience with the dealer during the sale and service of thevehicle, satisfaction with the initial quality of the vehicle andsatisfaction with the dependability of the vehicle after extended use.

Untuk menjadi lebih berdaya saing di pasaran yang liberal, adalahpenting untuk memastikan kepuasan pelanggan dan kualiti dipenuhi.Ini termasuk mewujudkan pengalaman positif dengan pengedarketika menjual dan menyelenggara kenderaan, berpuashati dengankualiti kereta ketika diterima dan berpuashati dengan tahapkemampuan kenderaan selepas penggunaan berlebihan.

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KEY DATA / DATA UTAMA 2004 2003

ISO Accreditation /Pengiktirafan ISO ISO 9000/2000 ISO9000/1994

QCC teams (Proton) /Kumpulan QCC (Proton) 283 249

QCC teams (Proton Edar) /Kumpulan QCC (Proton Edar) 127 0

QCC teams (Lotus) /Kumpulan QCC (Lotus) 14 0

QCC Awards Regional Gold Awards /

Anugerah Emas Wilayah 1 3 National Awards /

Anugerah Nasional 3 1

No. of suggestions /Jumlah cadangan 5,313 4,481

No. of Kaizen /Jumlah kaizen 3,429 3,409

QUALITY MANAGEMENTp e n g u r u s a n k u a l i t i

Proton adopts the three-stage line inspection for qualityassurance static evaluation on fitting and appearanceexterior and interior on cars that are just produced fromthe production line, dynamic evaluation on function anddrivability and final inspection before being approved fitfor delivery to customers. From May 2003, all inspectionshave been transferred to the production line to furtherempower the employees. Vendor quality was addressed atsource using Advance Product Quality Planning (APQP) teams.

As a result of these initiatives, there was further reductionin the number of quality problems. Built-up quality wasimproved from 8.8 defects per car in 2002 to 7.2 defects in2003 and 6.9 defects in 2004. This reduction was in largepart due to Quality Control Circle activities, which achievedsignificant waste elimination savings. Other efforts likestandardising our processes through our Quality OperatingSystem and engaging our employees through Kaizenactivities are making a difference in quality. As a result,various internal and external indicators of quality performanceshow that we are making significant progress. However,outgoing quality deteriorated to 12 demerit points from8.5 demerits the year before as the production lineadjusted to the new quality inspection procedures.

In recognition of the Companys continuous drive forquality improvement and the implementation of world-class quality systems, Proton was awarded the PrimeMinisters Quality Management Excellence Award 2004.

Proton menggunapakai pemeriksaan tiga peringkat untukjaminan kualiti. Penilaian statik kepada kemasan danketrampilan luar di bahagian luar dan dalam kenderaanyang dikeluarkan oleh bahagian pengeluaran, penilaiansecara dinamik kepada fungsi serta pamanduan kenderaandan pemeriksaan akhir dilakukan sebelum kenderaandiluluskan untuk dihantar kepada pelanggan. Bermula Mei2003, semua pemeriksaan telah ditukar ke bahagianpengeluaran untuk menggalakkan sifat mementingkankualiti kepada pekerja-pekerja. Kualiti pembekaldikenalpasti pada sumbernya menggunakan pasukan PelanKualiti Produk Kehadapan (APQP)

Hasil dari inisiatif-inisiatif ini terdapat pengurangan jumlahmasalah kualiti. Kualiti siap-bina bertambah baik dengantahap defek menurun daripada 8.8 defek satu keretadalam tahun 2002 kepada 7.2 defek dalam tahun 2003 dan6.9 defek dalam tahun 2004. Sebahagian besar pengurangantersebut adalah berpunca daripada aktiviti KumpulanKawalan Mutu, yang berjaya menjimatkan kos. Usaha lainseperti pemiawaian proses melalui Sistem Kualiti Operasidan penglibatan pekerja dengan aktiviti Kaizen memberiperbezaan kepada kualiti. Hasilnya, pelbagai petunjukkualiti dalaman dan luaran telah membuktikan bahawaperlaksanaan kualiti yang sedang kami jalankan adalahbertambah baik. Walau bagaimanapun kualiti keluar merosotkepada 12 mata demerit dari 8.5 mata demerit pada tahunsebelumnya disebabkan pengubahsuaian barisan pengeluaranterhadap tata cara pemeriksaan kualiti yang baru.

Proton telah dianugerahkan dengan Anugerah PengurusanKualiti Terbaik Perdana Menteri 2004 sebagai pengiktirafankepada usaha berterusan Syarikat untuk mempertingkatkankualiti dan melaksanakan sistem kualiti bertaraf dunia.

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We continued to work with our distributors and dealers in anumber of ways, most importantly, on programs designed toenhance the sales and service experience for our customers. Thestrengthening of the domestic sales and service network remainour key focus to improve customer service and maintain ourmarket share.

During the year, Proton Edar increased the number of Salesdealers by 8% from 160 to 173 outlets and Service dealers by 3%from 144 to 149 outlets. Consequently, turnover increased toRM4,182 million from RM4,138 million previously and the ProtonEdar share of the domestic passenger car market increased from23.9% to 25.9%.

In order to improve its customer focus, a Customer ManagementCenter was launched during the year. The service, known asProton I.Care, provides a one-stop center for customers to

Kami terus bekerjasama dengan pengedar dan wakil penjualdengan pelbagai cara dan yang terpentingnya, dalam programyang dirancang untuk mempertingkatkan pengalaman jualan danperkhidmatan kepada pelanggan kami. Pengukuhan rangkaianjualan dan servis akan terus menjadi tumpuan utama kami bagimengekalkan bahagian pasaran kami.

Dalam tahun semasa, Proton Edar telah menambahkan jumlahPengedar Jualan sebanyak 8% dari 160 ke 173 rangkaian danPengedar Perkhidmatan sebanyak 3% dari 144 ke 149 rangkaian.Dengan itu, jualan telah meningkat dari RM4,138 juta keRM4,182 juta sebelumnya dan penguasaan Proton Edar di dalampasaran kereta penumpang meningkat dari 23.9% ke 25.9%.

Bagi memperbaiki fokus pelanggan, sebuah Pusat PengurusanPelanggan telah dilancarkan. Khidmat tersebut dikenali sebagaiProton I.Care. Ia menyediakan pusat setempat bagi para

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SALES & DISTRIBUTIONj u a l a n & p e n g e d a r a n

contact and interact with Proton Edar for product andservice enquiry as well as 24 hours emergency breakdownassist.

For exports, the adverse economic impact and uncertaintyarising from the Iraq War affected sales to the MiddleEast, previously our largest overseas market. Total exportsfell 7% with 7,339 cars sold in 2004 compared with 7,929units the year before. A shipment of 5,000 cars due forIraq was deferred pending resolution of the political crisesin that country.

Proton Cars Australia recorded retail sales of 1,388 units,an increase of 55%. This was the second largest increase inpercentage terms of any OEM in Australia. The highersales were attributed to the success of the Jumbuck(Arena) which accounted for 786 units.

Proton Cars UK managed to retail a total of 507 units ofJumbuck (Arena), which represented 80% of the sub one-ton single cab petrol pick-up market. Total sales however,recorded a decline of 14% with the gradual phasing outof the old products.

Proton has continued to achieve excellent results in the2004 UK J.D. Power Customer Satisfaction Survey. Protontied for 10th position in the Overall Top Brand Categoryout of 33 brands and was placed second in Dealer ServiceSatisfaction, just behind Lexus.

Further inroad into the neighbouring Asean markets isexpected in 2005 with the establishment of Proton EdarIndonesia and Proton Singapore.

pelanggan berhubung dan berinteraksi dengan ProtonEdar untuk sebarang pertanyaan mengenai produk danperkhidmatan serta khidmat bantuan kecemasan 24 jam.

Dari segi ekspot, kesan kemerosotan ekonomi dankeadaan yang tidak dapat diramal yang disebabkan olehpeperangan Iraq telah menjejaskan jualan di TimurTengah, yang sebelumnya merupakan pasaran luar negaraterbesar kami. Jualan Proton menurun sebanyak 7% dengan 7,339 unit kereta dijual pada tahun 2004dibandingkan dengan 7,929 unit sebelumnya.Penghantaran 5,000 kereta ke Iraq terpaksa ditunda akibatkrisis politik yang dialami oleh negara tersebut.

Proton Cars Australia mencatatkan jualan sebanyak 1,388unit, iaitu peningkatan sebanyak 55%. Ini merupakanpeningkatan kedua terbesar dalam bentuk peratusandalam mana-mana OEM di Australia. Model Jumbuck (Arena)telah mencatatkan jualan sebanyak 786 unit di mana telahmenyumbangkan kepada peningkatan tersebut.

Proton Cars UK berjaya mencapai jualan sebanyak 507 unitJumbuck (Arena), yang mewakili 80% pasaran pick-up sub-satu tan berkabin tunggal berkuasa petrol. Walaubagaimanapun jumlah jualan menurun sebanyak 14%dengan pengurangan secara berperingkat terhadapproduk lama.

Proton terus mencapai hasil yang cemerlang pada tahun2004 mengikut kajiselidik kepuasan pelanggan yang dibuatoleh UK J.D. Power. Proton menduduki tempat yangkesepuluh dalam Kategori Jenama Teratas Keseluruhandari 33 jenama dan tempat yang kedua dalam KepuasanServis Pengedar di belakang Lexus.

Pasaran yang lebih luas akan diperolehi dalam negara jiranyang terdekat iaitu Asean pada tahun 2005 denganpembentukan Proton Edar Indonesia dan Proton Singapore.


KEY DATA / DATA UTAMA 2004 2003

Malaysian / Malaysia Bumiputra / Bumiputra 69.04% 60.57%Non-Bumiputra /Bukan Bumiputra 4.03% 12.33%

Foreign / Warga Asing 26.93% 27.10%

KEY FIGURES / ANGKA UTAMA 2004 2003

Share price as at 31 March /Harga saham pada 31 Mac RM9.85 RM8.00

Dividends per share (Interim and proposed final) /Dividen sesaham (Interim dan cadangan akhir) 15 sen 20 sen

Earnings per share / Keuntungan sesaham 92.9 sen 201.9 sen

NTA per share RM10.08 RM9.35

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Timely shareholder communication remains theobjective of our investor relations program, whichinvolves the participation of the Board and seniormanagement. Although the principal forum fordialogue with shareholders remains the Annual GeneralMeeting, the investor relations program establishes adirect channel of communication with shareholders andthe investment community, both local and foreign.Under this program, the Group organises regularbriefings for analysts and fund managers as well asparticipates in investors forums to keep them abreastwith the latest development.

In 2003/04, the Group held more than 50 meetingswith equity research analysts, fund managers andinstitutional investors and shareholders. Analystbriefings and plant tours were also conducted at ShahAlam as well as the new factory in Tanjung Malim. Thesenior management participates in all investor relationactivities, meeting fund managers and analysts regularly.

PROTON shares began the financial year at RM8.00 andreached a high of RM10.10 before succumbing toglobal uncertainties arising from the Iraq War. In anoverall weak market, PROTON shares were adverselyaffected by investor restraint. However, the overwhelmingresponse to the Gen.2 launched in February 2004resulted in the share price closing higher at RM9.85 on31 March 2004.

Komunikasi yang berkesan dengan pemegang-pemegangsaham pada masa yang tepat kekal sebagai objektifutama di dalam program perhubungan dengan pelaburkami, yang menyaksikan penglibatan pihak Pengarahdan pengurusan kanan. Walaupun Mesyuarat AgungTahunan masih menjadi forum dialog utama, programperhubungan dengan pelabur adalah saluran komunikasisecara terus dengan pemegang-pemegang saham dankomuniti pelabur di dalam dan luar negara. Menerusiprogram ini, Kumpulan sentiasa menganjurkan sesipenerangan untuk penganalisa-penganalisa danpengurus-pengurus dana di samping mengambilbahagian di dalam forum pelabur untuk memastikanbahawa mereka dimaklumkan tentang sebarangperkembangan terkini.

Dalam tahun 2003/04, Kumpulan telah mengadakanlebih daripada 50 perjumpaan dengan penganalisa-penganalisa penyelidik ekuiti, pengurus-pengurus danainstitusi-institusi pelaburan dan pemegang-pemegangsaham. Taklimat dan lawatan kilang juga telah diadakandi Shah Alam dan juga di kilang baru, Tanjung Malim.Pengurusan-pengurusan kanan juga kerap mengambilbahagian dalam semua aktiviti-aktiviti yang berkaitandengan pelabur-pelabur, perbincangan denganpengurus-pengurus dana dan penganalisa-penganalisa.

Saham PROTON bermula dalam tahun kewangan denganharga RM8.00 dan mencecah paras tertinggi padaRM10.10 sebelum merosot kerana kegawatanantarabangsa akibat dari perang di Iraq. Walaubagaimanapun, respon yang menggalakkan terhadappelancaran Gen.2 pada Februari 2004 telahmengakibatkan harga saham ditutup lebih tinggi padaRM9.85 pada 31 Mac 2004.

SHAREHOLDERSp e m e g a n g - p e m e g a n g s a h a m

During the year, Proton continued to forgepartnerships with suppliers, service providers andtechnical experts to enable the Group to deliverinnovative products and services to our customers. Wecarefully select those alliance opportunities that enableus to deliver better ideas into the marketplace in newand exciting ways. Diversity is apparent as our businessassociates span the globe and include Asian, European,North American and South American companies.

Pada tahun semasa, Proton terus membentukperkongsian dengan pembekal-pembekal, pembekal-pembekal perkhidmatan dan pakar-pakar teknikaluntuk membolehkan Kumpulan menyalurkan produkdan perkhidmatan yang inovatif kepada pelanggankami. Kami berhati-hati memilih peluang perikatanbagi membolehkan kami menyampaikan idea yanglebih baik ke dalam pasaran dengan cara yang barudan lebih menarik. Kepelbagaian adalah nyata di manarakan niaga kami berada di seluruh dunia termasuksyarikat-syarikat dari Asia, Eropah, Amerika Utara danAmerika Selatan.

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BUSINESS ASSOCIATEr a k a n n i a g a

Proton has continued to spearhead the development oflocal capabilities in the manufacture of automotivecomponents. Over 100 Malaysian manufacturers wereappointed as Simultaneous Engineering Partners in thedevelopment of our new range of products. This involvedparticipation in the engineering design and testing of keycomponents and will result in the acquisition of researchand development capabilities. Proton has continued toactively encourage Malaysian vendors to venture abroad tosupply our overseas assembly operations.

In August 2003, Proton formed a joint venture withMiyazu of Japan, one of the worlds largest manufacturersof automotive dies, to develop Malaysian capabilities in diedesign, manufacturing and maintenance. Using acombination of Japanese technology and local resource,the joint venture, Miyazu (Malaysia) Sdn. Bhd., will be ableto reduce the cost of automotive dies for Protons newmodels by as much as 20%. In recognition of itstechnology transfer role, the company has also beengranted status as a high technology company entitling itspecial tax incentives.


173


Proton terus menerajui pembangunan tenaga-tenagatempatan di dalam perkilangan kompenan otomotif. Lebih100 pengilang Malaysia telah dilantik sebagai RakanKejuruteraan Serentak di dalam pembangunan produkbaru kami. Ini termasuklah penglibatan di dalamkejuruteraan rekaan dan ujian ke atas komponen-komponen utama di mana kebolehan tempatan dalampenyelidikan dan pembangunan akan diperolehi. Protonakan terus menggalakkan pembekal dari Malaysia untukmenerokai ke luar negara bagi membekalkan komponenuntuk operasi pemasangan di sana.

Pada Ogos 2003, Proton telah menandatangani perjanjiankawalan bersama dengan Miyazu dari Jepun, salah sebuahpengilang acuan otomotif terbesar di dunia untukmeningkatkan kemampuan Malaysia dalam rekaan acuan,pengilangan dan penyelengaraan. Dengan menggunakankombinasi teknologi Jepun dan sumber tempatan, Miyazu(Malaysia) Sdn. Bhd. berkemampuan mengurangkan kosotomotif acuan untuk model baru Proton sebanyak 20%.Di dalam pengiktirafan peranannya sebagai pemindahteknologi, syarikat juga telah diberi status syarikat yangberteknologi tinggi dan berhak untuk mendapat insentif-insentif cukai.

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OUR PEOPLE ARE THE SOURCE OF OUR SUCCESS

The overall thrust of our Human Resource strategy is torecruit, reward and retain the best employees. Duringthe year, a number of recruitment road shows wereconducted in Malaysia as well as the UK among leadingengineering and business universities to meet ourgrowing requirement. The response was overwhelmingand more such road shows are being planned for thecoming year. An internship program for graduatetrainees was implemented during the year to meet thegrowing needs of the business.

The Human Resource Management Group hascontinued to be the key forum for the communicationof policies and issues affecting the employees. TheGroup comprising representatives from the SeniorManagement and the Proton Workers Union meet on amonthly basis to discuss strategic human resource issuesaffecting employees. It is a unique program that allowsregular communication and prompt resolution of issuesas well as participation by the Union in thedevelopment of policies affecting the employees.

ORANG KAMI ADALAH SUMBER KEJAYAAN KAMI

Strategi keseluruhan Sumber Manusia kami adalahuntuk merekrut, memberi ganjaran dan mengekalkanpekerja terbaik. Pada tahun semasa, beberapa roadshow telah dijalankan di universiti-universiti kejuruteraandan perniagaan yang terkemuka di Malaysia dan di UKuntuk memenuhi peningkatan keperluan kami.Sambutan yang diberikan amat menggalakan dan kamimerancang untuk mengadakan lebih banyak road showpada masa akan datang. Satu program pengambilanpelatih-pelatih graduan telah diadakan dalam tahunsemasa bagi menampung peningkatan dalam keperluan-keperluan perniagaan.

Kumpulan Pengurusan Sumber Manusia terus menjadiforum utama dalam menyampaikan maklumat dan isuyang membabitkan pekerja. Pihak pengurusan yangdiwakili oleh pengurus kanan bersama dengan wakilkesatuan pekerja berjumpa setiap bulan untukmembincangkan isu-isu strategik sumber manusia yangmembabitkan pekerja. Ia adalah program unik yangmembolehkan komunikasi antara dua belah pihaksentiasa dijalankan, isu diselesaikan serta merta yangmembolehkan penglibatan Kesatuan di dalampembangunan polisi yang melibatkan pekerja.

HUMAN RESOURCESs u m b e r m a n u s i a

175



176



The following HR initiatives continue to be adopted by theGroup.

PERFORMANCE MANAGEMENT SYSTEM

The system aligns the targets, which is linked to corporategoals, with the competencies required to achieve them. Itprovides clear accountability, with focus on critical businessissues and enables self-tracking of individual performance.It uses the balanced scorecard approach to provide anobjective assessment and to identify high potential futureleaders.

COMPENSATION

The aim of this program is to align remuneration withperformance to attract and retain top talents. This isachieved through a combination of fixed and variablepayment, which is benchmarked against industry standards,that is linked to achievement of agreed targets. Thequantum of variable payment is measured against theCompanys performance, affordability and compensationobjectives.

LEARNING ORGANISATION

As the competitive environment becomes more complex, itis crucial that our employees acquire the necessaryknowledge to cope with these challenges. Under thisinitiative, all non-executives will undergo training andcertification under an in-house developed programaccredited by the Majlis Latihan Vokasional Kebangsaan.Eligible executives were enrolled in a three-month parttime collaborative program with University Malaya toequip them with knowledge in marketing, finance, lawand business.

Inisiatif-inisiatif berikut terus digunapakai oleh Kumpulan.

SISTEM PRESTASI PENGURUSAN

Sistem ini menyelaraskan sasaran, yang dikaitkan denganobjektif korporat, dengan kecekapan yang diperlukan.Tanggungjawab pekerja adalah jelas, tumpuan kepada isu-isu perniagaan yang kritikal boleh diberikan dan setiapindividu akan menjejak prestasi diri sendiri. Sistem inimenggunakan imbangan kad skor untuk memberi penilaianobjektif dan mengenalpasti bakal pemimpin pada masahadapan.

PAMPASAN

Tujuan program ini ialah untuk menyelaraskan imbuhandengan prestasi bagi menarik dan mengekalkan pekerjayang sangat berbakat. Ini dapat dicapai melalui gabungandi antara pembayaran tetap dan pembayaran berubah-ubah yang dibandingkan dengan aras industri dandikaitkan dengan sasaran yang telah dipersetujui. Jumlahimbuhan adalah berdasarkan prestasi Syarikat, kemampuanSyarikat dan objektif imbuhan itu sendiri.

ORGANISASI PEMBELAJARAN

Dalam persekitaran yang semakin kompleks, adalahpenting untuk pekerja kita memperolehi pengetahuanyang perlu untuk menempuhi cabaran. Di bawah inisiatifini, semua pekerja bukan eksekutif akan melalui latihandan persijilan di bawah pembangunan program dalamanyang diiktiraf oleh Majlis Latihan Vokasional Kebangsaan.Eksekutif yang berkelayakan didaftarkan di dalam program3 bulan separuh masa dengan Universiti Malaya untukmelengkapkan mereka dengan pengetahuan di dalampemasaran, kewangan, perundangan dan perniagaan.

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ENVIRONMENT, HEALTH AND SAFETYp e r s e k i t a r a n , k e s i h a t a n d a n k e s e l a m a t a n

178



PROTON is committed towards protecting theenvironment, health and safety of those who make,distribute or use our products. In 1997, we began an EHSInitiative to raise the profile of health and safety issues inour organisation, develop effective approaches andintegrate them with our operating environment. Weimplemented measures to ensure a conducive, safe andhealthy working environment for our employees byproviding the appropriate resources and monitoring andmaintaining a high standard. Compulsory motorcycledefensive riding training was implemented for non-executive employees and has been successful in reducingroad accidents. The program has continued to reduce losttime injuries in our organisation significantly since then.

We stand behind our commitment to continuously improvethe safety of our vehicles for our customers and the public.Safety features such as energy absorbing crumble zones,safety belts, air bags and side impact beams help reducethe likelihood of injury to drivers and passengers in anaccident. In the past several years, PROTON has workedwith our business associates to add sophisticatedtechnologies to basic features including the vehicles levelof comfort, ease of use, lighting, maneuverability andbraking systems to help drivers avoid collisions andmaintain control in emergency situations.

In the Gen.2, the emphasis on safety is further accentuatedwith a three-stage safety system a safer cabin, activesafety and passive safety. It features increased body rigidityand crumple zone, four wheel anti lock brake system withelectronic brake force distribution and airbagssupplemented with an electronic seat belt pre-tensionersystem which locks the belt in place to limit occupanttravel in the event of a crash.

Proton adalah komited dalam melindungi alam sekitar,kesihatan dan keselamatan semua yang terlibat dalampembuatan, pengedaran atau penggunaan produk kami.Pada tahun 1997, kami memulakan inisiatif bagimeningkatkan profil isu kesihatan dan keselamatan dalamsyarikat membentuk langkah-langkah yang berkesan danmenyatukan langkah-langkah tersebut ke dalam persekitarankerja kami. Kami melaksanakan langkah yang perlu untukmemastikan persekitaran kerja yang sesuai, selamat dansihat bagi pekerja-pekerja dengan menyediakan sumber-sumber yang perlu dan mengawas serta mengekalkanpiawaian yang tinggi. Latihan wajib kemahiran menunggangmotosikal juga dilaksanakan untuk pekerja-pekerja bukaneksekutif dan telah berjaya dalam mengurangkan kemalanganjalan raya. Program ini terus berjaya mengurangkankehilangan masa kecederaan dalam organisasi kami.

Kami terus komited bagi meningkatkan ciri-ciri keselamatankenderaan untuk keselamatan pelanggan dan orang awam.Ciri-ciri keselamatan seperti zon penyerapan kuasapecahan, tali pinggang keselamatan, beg udara dan alanglanggaran tepi membantu mengurangkan kemungkinanberlaku kecederaan kepada pemandu dan penumpangketika kemalangan. Selama beberapa tahun yang lepas,PROTON telah bekerjasama dengan rakan niaganya untukmeningkatkan teknologi yang sofistikated di dalam ciri-ciriasas kenderaan, kemudahan pengendalian, pencahayaan,pemanduan dan sistem brek untuk membantu pemandumengelakkan perlanggaran dan mengekalkan kawalandalam situasi cemas.

Untuk Gen.2, penekanan terhadap keselamatan dilanjutkanlagi dengan sistem keselamatan tiga peringkat kabinyang lebih selamat, keselamatan aktif dan keselamatanpasif. Ia menampilkan peningkatan ketahanan badan,kuasa pecahan, sistem brek anti kekunci empat rodadengan pengagihan tekanan brek elektronik dan beg-begudara dengan tambahan sistem pra-regangan talipinggang keselamatan elektronik yang mana menguncikedudukan tali pinggang untuk menghadkan pergerakanpemakai jika berlaku perlanggaran.

COMMUNITY RELATIONSp e r h u b u n g a n m a s y a r a k a t

179


At PROTON, we believe that successful business and socialresponsibility go hand in hand. In 2004, we continued toplay our role as a responsible corporate citizen bysponsoring projects that support sustainability, tourism andinternational relations, offering educational assistancethrough Yayasan PROTON and by participating in culturaland sports activities.

We continue to be a major supporter of the vision toposition Malaysia as a leading cycling and tourist destinationthrough the annual Le Tour de Langkawi cycling race. Oursupport of badminton through sponsorship of its developmentprogram has seen the grooming of many Malaysian world-class players. Protons sponsorship of the Norwich CityFootball Club, an English Premier League team, hasenabled hundreds of young Malaysian footballers tobenefit from the football clinics conducted by the Clubunder the Football for the Community Program.

Contributions were made to the less fortunate from thevarious communities during the annual Hari Raya, ChineseNew Year, Deepavali and Christmas celebrations.

PROTON is also committed to support the Governmentsefforts to upgrade the academic and technical skills ofMalaysians by providing scholarships through YayasanPROTON.

Di PROTON kami percaya bahawa kejayaan perniagaandan tanggungjawab sosial berkait rapat. Dalam tahun2004, kami meneruskan tanggungjawab sebagai wargakorporat dengan menaja projek-projek yang menyokongpengekalan pulangan, pelancongan dan hubunganantarabangsa, memberi bantuan pendidikan melaluiYayasan PROTON dan penglibatan di dalam aktiviti-aktivitikebudayaan dan kesukanan.

Kami terus menyokong visi untuk menempatkan Malaysiasebagai destinasi sukan berbasikal, pelancongan yangutama melalui acara tahunan Perlumbaan Berbasikal Le Tour de Langkawi. Sokongan kami kepada sukanbadminton melalui penajaan program pembangunannyatelah melahirkan ramai pemain-pemain Malaysia yangbertaraf antarabangsa. Penajaan Proton ke atas KelabBolasepak Norwich City, pasukan dari Liga Perdana Inggeristelah membolehkan ratusan pemain-pemain bolasepakremaja Malaysia mendapat manfaat daripada klinikbolasepak yang dilaksanakan oleh kelab tersebut di bawahprogram Bolasepak untuk Komuniti.

Kami juga telah memberi sumbangan kepada mereka yangkurang bernasib baik di dalam masyarakat semasaperayaan tahunan Hari Raya, Tahun Baru Cina, Deepavalidan Krismas.

PROTON juga adalah komited dalam menyokong usahakerajaan untuk meningkatkan kemahiran akademik danteknikal rakyat Malaysia dengan menyediakan penajaanmelalui Yayasan PROTON.

180


FIVE YEARS FINANCIAL HIGHLIGHTSr i n g k a s a n k e w a n g a n u n t u k l i m a t a h u n

BALANCE SHEET AS AT 31 MARCH / KUNCI KIRA-KIRA PADA 31 MAC(RM Million / Juta)

Group / Kumpulan Company / Syarikat2004 2003 2002 2001 2000 2004 2003 2002 2001 2000

Current Assets /Aset Semasa

Inventories / Inventori 821.9 835.5 720.2 881.7 660.8 374.1 372.5 232.5 450.3 303.1Receivables /

Penghutang 944.5 852.5 894.0 836.2 871.2 809.9 808.1 847.4 674.7 708.0Short Term

Investments /Pelaburan JangkaPendek 182.0 166.4 185.0 144.2 160.2 182.0 166.4 185.0 144.2 160.2

Deposits, Bank andCash Balances /Deposit, Bankdan Baki Tunai 2,989.2 3,793.3 3,639.9 2,309.3 1,473.5 2,136.2 3,005.6 2,965.1 1,609.5 1,416.0

4,937.6 5,647.7 5,439.1 4,171.4 3,165.7 3,502.2 4,352.6 4,230.0 2,878.7 2,587.3

Current Liabilities /Liabiliti Semasa

Payables / Pemiutang 1,935.3 2,464.4 2,256.5 2,441.4 2,034.9 1,393.8 1,700.7 1,736.6 1,440.1 1,145.8Taxation / Cukai 143.4 206.5 280.3 182.2 146.3 139.3 207.5 250.7 124.0 136.4

2,078.7 2,670.9 2,536.8 2,623.6 2,181.2 1,533.1 1,908.2 1,987.3 1,564.1 1,282.2

181

Five Years Financial HighlightsRingkasan Kewangan untuk Lima Tahun


BALANCE SHEET AS AT 31 MARCH (Contd.) / KUNCI KIRA-KIRA PADA 31 MAC (Samb.)(RM Million / Juta)


Net Current Assets /Aset Semasa Bersih 2,858.9 2,976.8 2,902.3 1,547.8 984.5 1,969.1 2,444.4 2,242.7 1,314.6 1,305.1

Property, Plant andEquipment /Hartanah, Lojidan Peralatan 2,940.3 2,256.9 1,737.8 2,111.8 2,124.5 2,613.6 2,019.3 1,594.3 1,666.6 1,754.6

SubsidiaryCompanies /Syarikat Subsidiari 483.8 444.7 422.8 763.4 407.1

AssociatedCompanies /Syarikat Bersekutu 170.1 146.9 89.3 65.3 187.9 32.0 32.0 27.8 23.0 37.8

Jointly ControlledEntities / EntitiKawalan Bersama 28.1 2.8 1.7 1.2 0.6

Other Long TermInvestments /Pelaburan JangkaPanjang Lain 6.3 6.3 6.3 6.3 1.3 2.4 2.4 2.4 2.4 0.6

Long TermLiabilities / LiabilitiJangka Panjang (447.4) (222.3) (509.8) (563.2) (368.4) (169.9) (222.2) (272.6) (290.4) (307.5)

Minority Interest /KepentinganMinoriti (64.6) (56.6) (46.8) (36.0) (57.5)

Deferred TaxAssets/(Liabilities) /Cukai TertundaAset/(Liabiliti) 46.3 26.3 (10.0) (57.8) (57.6) 34.5 14.8 (15.7) (52.1) (59.4)

5,538.0 5,137.1 4,170.8 3,075.4 2,815.3 4,965.5 4,735.4 4,001.7 3,427.5 3,138.3

182



BALANCE SHEET AS AT 31 MARCH (Contd.) / KUNCI KIRA-KIRA PADA 31 MAC (Samb.)(RM Million / Juta)


Shareholders Funds /Dana PemegangSaham

Share Capital /Modal Saham 549.2 549.2 543.1 542.7 542.7 549.2 549.2 543.1 542.7 542.7

Other Reserves /Rizab 46.4 62.2 121.6 117.7 124.9 477.2 475.6 432.4 429.4 429.4

Retained Profits /KeuntunganTersimpan 4,942.4 4,525.7 3,506.1 2,415.0 2,147.7 3,939.1 3,710.6 3,026.2 2,455.4 2,166.2

5,538.0 5,137.1 4,170.8 3,075.4 2,815.3 4,965.5 4,735.4 4,001.7 3,427.5 3,138.3

183



INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH / PENYATA PENDAPATAN BAGI TAHUN KEWANGAN BERAKHIR 31 MAC(RM Million / Juta)


Revenue / Hasil 6,470.3 9,268.0 10,307.7 8,301.2 6,496.7 5,259.8 7,674.3 8,571.1 6,902.9 5,399.6

Profit BeforeTaxation /KeuntunganSebelum Cukai 592.0 1,360.0 1,511.8 378.3 141.3 329.6 934.0 889.7 358.8 127.1

Profit AfterTaxation /KeuntunganSelepas Cukai 521.1 1,117.8 1,185.0 278.6 86.0 321.8 772.3 649.4 319.1 98.9

Retained ProfitCarried Forwardbefore Dividend /KeuntunganTersimpan Dibawake Hadapansebelum Dividen 5,035.8 4,613.6 3,584.8 2,444.9 2,196.5 4,032.5 3,798.5 3,104.9 2,485.3 2,215.0

Dividend / Dividen (93.4) (87.9) (78.7) (29.9) (48.8) (93.4) (87.9) (78.7) (29.9) (48.8)

Retained ProfitCarried Forward /KeuntunganTersimpan Dibawake Hadapan 4,942.4 4,525.7 3,506.1 2,415.0 2,147.7 3,939.1 3,710.6 3,026.2 2,455.4 2,166.2

184



SHARE INFORMATION / MAKLUMAT SAHAM(RM Million / Juta)


Per Share / SesahamBasic Earnings /

Perolehan Asas(sen) 92.9 201.9 215.5 54.8 14.2 58.6 140.8 119.7 58.8 18.2

Tax-ExemptDividend Paid /DividenDikecualikanCukai Dibayar(sen) 17.0 16.0 14.5 5.5 9.0 17.0 16.0 14.5 5.5 9.0

Net TangibleAsset / AsetKetara Bersih(RM) 10.08 9.35 7.68 5.67 5.19 9.04 8.62 7.37 6.32 5.78

Share Price /Harga Saham (RM) 9.85 8.00 10.90 5.60 7.80

185


KEY FINANCIAL INDICATORSp e t u n j u k k e w a n g a n u t a m a

RM

MIL

LIO

N /

RM

JU

TA

RM

MIL

LIO

N /

RM

JU

TA

Dividend /Dividen

120

100

80

60

40

20

0

0001020304

Retained Profit Carried Forward /

Keuntungan Tersimpan Dibawa ke Hadapan

6,000

5,000

4,000

3,000

2,000

1,000

0

0001020304

Group and Company /Kumpulan dan Syarikat

Group / Kumpulan

Company / Syarikat

240

200

160

120

80

40

0

0001020304

Basic Earnings Per Share /Perolehan Asas Sesaham

Group / Kumpulan

Company / Syarikat

SE

N /

SE

N

Net Tangible Assets /Aset Ketara Bersih

12

10

8

6

4

2

0

0001020304

Group / Kumpulan

Company / Syarikat

RM

/ R

M

186


Revenue / Hasil

12,000

10,000

8,000

6,000

4,000

2,000

RM

MIL

LIO

N /

RM

JU

TA

RM

MIL

LIO

N /

RM

JU

TA

RM

MIL

LIO

N /

RM

JU

TA

RM

MIL

LIO

N /

RM

JU

TA

0

0001020304

Profit Before Taxation /Keuntungan Sebelum Cukai

1,800

1,500

1,200

900

600

300

0

0001020304

Profit After Taxation /Keuntungan Selepas Cukai

1,200

1,000

800

600

400

200

0

0001020304

Net Profit Attributable to Shareholders /

Keuntungan Bersih kepadaPemegang Saham

1,200

1,000

800

600

400

200

0

0001020304

Group / Kumpulan

Company / Syarikat

Group / Kumpulan

Company / Syarikat

Group / Kumpulan

Company / Syarikat

Group / Kumpulan

Company / Syarikat

Key Financial IndicatorsPetunjuk Kewangan Utama

187


FINANCIAL CALENDARt a k w i m k e w a n g a n

ACTIVITIES / AKTIVITI-AKTIVITI DATE / TARIKH

ANNOUNCEMENT OF RESULTS / PENGUMUMAN KEPUTUSAN Unaudited First (1st) quarter results for the three months ended 30 June 2003 29 August / Keputusan suku pertama yang belum diaudit bagi tiga bulan berakhir 30 Jun 2003 Ogos 2003

Date of Notice of 20th Annual General Meeting / Tarikh Notis Mesyuarat Agung Tahunan ke 20 5 September 2003

20th Annual General Meeting / Mesyuarat Agung Tahunan yang ke 20 29 September 2003

Date of entitlement to the tax exempt final dividend of 12% for the financial year 8 October /ending 31 March 2003 / Tarikh untuk hak menerima dividen akhir yang dikecualikan daripada Oktober 2003cukai sebanyak 12% bagi tahun kewangan berakhir 31 Mac 2003

Payment of the tax exempt final dividend of 12% for the financial year ending 31 March 2003 28 October /Pembayaran dividen akhir yang dikecualikan daripada cukai sebanyak 12% bagi tahun Oktober 2003kewangan berakhir 31 Mac 2003

Unaudited Second (2nd) quarter results for the three months ended 30 September 2003 19 November 2003 Keputusan suku kedua yang belum diaudit bagi tiga bulan berakhir 30 September 2003

Date of entitlement to the tax exempt interim dividend of 5% for the financial year 19 December /ending 31 March 2004 / Tarikh untuk hak menerima dividen interim yang dikecualikan Disember 2003daripada cukai sebanyak 5% bagi tahun kewangan berakhir 31 Mac 2004

Payment of the tax exempt interim dividend of 5% for the financial year 16 January /ending 31 March 2004 / Pembayaran dividen interim dikecualikan daripada cukai sebanyak 5% Januari 2004bagi tahun kewangan berakhir 31 Mac 2004

Unaudited Third (3rd) quarter results for the three months ended 31 December 2003 27 February / Keputusan suku ketiga yang belum diaudit bagi tiga bulan berakhir 31 Disember 2003 Februari 2004

Unaudited Fourth (4th) quarter results for the three months ended 31 March 2004 25 May / Keputusan suku ke-empat yang belum diaudit bagi tiga bulan berakhir 31 Mac 2004 Mei 2004

188


SHARE PRICE AND VOLUME TRADEDh a r g a s a h a m d a n s a h a m d i n i a g a k a n

10,000

8,000

6,000

4,000

2,000

Apr2003

May Jun Jul Aug Apr May Jun Jul AugSep Oct Nov Dec2003

Jan2004

Feb Mar0

Closing / Penutup Volume / Jumlah '000Lowest / TerendahHighest / TertinggiOpening / Pemula

10

8

6

4

2

Volume / Jumlah'000

Price / Harga(RM)

189


Awards and RecognitionAnugerah dan Pengiktirafan

Malaysia best brand Award.Anugerah jenama terbaikMalaysia.

Industry ExcellenceAward 2003.

AnugerahKecemerlangan

Industri 2003.

ISO 9001:2000 certification Vehicle Certificate Agency.Pengiktirafan ISO 9001:2000.

SIRIM QAS.SIRIM QAS.

2003 Best LandscapeCompetition (FirstPlace FactoryCategory).Pertandingan LanskapHalaman Cantik 2003(Pemenang Pertama Kategori Kilang).

PROTON continued to winaccolades and awards,endorsing the relentlessefforts and continuousprogrammes to transformPROTON into a world classautomobile manufacturerwhile reinforcing itsposition in an increasinglycompetitive automobilemarket environment.

PROTON terus memenangi anugerah,sebagai pengiktirafan usaha-usaha danprogram-program berterusan untukmengubah PROTON sebagai pengeluarotomotif bertaraf dunia sambilmemperkukuhkan kedudukannya didalam pasaran otomotif dunia yangmakin kompetitif.

National Creativity &Innovation Award 2004.Anugerah Kreativiti &Inovasi Kebangsaan 2004.

Industry Excellence Award2003. Quality ManagementCategory III.Anugerah KecemerlanganIndustri 2003. PengurusanKualiti Kategori III.

Directors Report 191Laporan Pengarah 281

Income Statements 196Penyata Pendapatan 286

Balance Sheets 197Kunci Kira-kira 287

Consolidated Statement of Changes in Equity 199Penyata Perubahan Ekuiti Disatukan 289

Company Statement of Changes in Equity 201Penyata Perubahan Ekuiti Syarikat 291

Cash Flow Statements 203Penyata Aliran Tunai 293

Notes to the Financial Statements 206Nota-nota kepada Penyata Kewangan 296

Statement by Directors 279Penyata oleh Pengarah 369

Statutory Declaration 279Akuan Berkanun 369

Report of the Auditors 280Laporan Juruaudit 370

Financial StatementsPenyata Kewangan

The Directors have pleasure in submitting their annual report to the members together with the audited financial statementsof the Group and Company for the financial year ended 31 March 2004.

PRINCIPAL ACTIVITIES

The Company is principally involved in manufacturing, assembling and selling motor vehicles and related products.

The principal activities of the subsidiary and associated companies are set out in Notes 23 and 24 to the financial statements.

There was no significant changes in the activities of the Group during the financial year.

FINANCIAL RESULTS

Group CompanyRM000 RM000

Profit after taxation 521,076 321,836Minority interests (11,005)

Net profit attributable to shareholders 510,071 321,836

DIVIDENDS

The amount of dividends paid or declared by the Company since 31 March 2003 were as follows:

In respect of the financial year ended 31 March 2003 as shown in the Directors' report of that year:

RM000

Final tax exempt dividend of 12.0 sen per ordinary share, paid on 28 October 2003 65,906

In respect of the financial year ended 31 March 2004:

Interim tax exempt dividend of 5.0 sen per ordinary share, paid on 16 January 2004 27,461

DIRECTORS REPORT

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DIVIDENDS (Contd.)

The Directors now recommend the payment of a final tax exempt dividend of 10.0 sen per ordinary share on 549,213,000ordinary shares amounting to RM54,921,300 for the financial year ended 31 March 2004 to be paid to its parent company,Proton Holdings Berhad.

RESERVES AND PROVISIONS

There were no material transfers to or from reserves and provisions during the financial year except as disclosed in thefinancial statements.

DIRECTORS

The Directors who have held office during the period since the date of the last report are:

Y.Bhg. Datuk Abu Hassan bin Kendut (Resigned on 25 May 2004)Alternate director: Y.Bhg. Datuk Anwar bin Haji @ Aji (Resigned on 25 May 2004)

Y.M. Tengku Tan Sri Dr. Mahaleel bin Tengku Ariff (Resigned on 25 May 2004)Y.Bhg. Datuk Kisai bin Rahmat (Resigned on 25 May 2004)Y.Bhg. Dato Haji Abdul Majid bin Haji Hussein (Resigned on 25 May 2004)Mr. Hisayoshi Kumai (Resigned on 25 May 2004)

Alternate director: Mr. Akihiko Mizumoto (Resigned on 25 May 2004)Y.Bhg. Tan Sri A. Razak bin Ramli (Resigned on 25 May 2004)Encik Badrul Feisal bin Abdul Rahim (Resigned on 25 May 2004)Y.Bhg. Dato Mohd Ghazali @ Fauzi bin Yacub (Resigned on 25 May 2004)Encik Abdul Jabbar bin Abdul Majid (Resigned on 25 May 2004)Y.Bhg. Lt Gen (R) Dato Seri Mohamed Daud bin Abu Bakar (Resigned on 25 May 2004)Y.Bhg. Datuk Dr. Soh Chai Hock (Resigned on 25 May 2004)Y.Bhg. Tan Sri Ahmad Fuzi bin Haji Abdul Razak (Resigned on 25 May 2004)Encik Md Ali bin Md Dewal (Resigned on 25 May 2004)Mr. Masaharu Iwata (Resigned on 19 November 2003)Mr. Fumihiko Minami (Appointed on 19 November 2003/

Resigned on 25 May 2004)Y.Bhg. Datuk Kisai bin Rahmat (Appointed on 25 May 2004)Mr. Tan Seng Lee (Appointed on 25 May 2004)Puan Fadilat binti Ismail (Appointed on 25 May 2004)Ms. Savita Saigal (Appointed on 25 May 2004)

192

Directors Report


DIRECTORS (Contd.)

Pursuant to Article 103 of the Companys Articles of Association, Y.Bhg. Datuk Kisai bin Rahmat, Mr. Tan Seng Lee, PuanFadilat binti Ismail and Ms. Savita Saigal retire at the forthcoming Annual General Meeting and, being eligible, offerthemselves for re-election.

DIRECTORS' BENEFITS

During and at the end of the financial year, no arrangements subsisted to which the Company is a party, being arrangementswith the object or objects of enabling Directors of the Company to acquire benefits by means of the acquisition of sharesin, or debentures of, the Company or any other body corporate.

Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other thanbenefits disclosed as Directors remuneration in Note 6 to the financial statements) by reason of a contract made by theCompany or a related corporation with the Director or with a firm of which the Director is a member, or with a companyin which the Director has a substantial financial interest.

DIRECTORS INTEREST IN SHARES AND DEBENTURES

At the end of the financial year, Y.Bhg. Datuk Abu Hassan bin Kendut is deemed to have an indirect interest in shares ofthe Company through 4,000 ordinary shares of RM1 each held by his spouse.

No other Director in office at the end of the financial year held any interest in shares in the Company and its relatedcorporations.

STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS

Before the income statements and balance sheets of the Group and Company were made out, the Directors took reasonablesteps:

(a) to ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance fordoubtful debts, and satisfied themselves that all known bad debts had been written off and that adequate allowancehad been made for doubtful debts; and

(b) to ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course of businesstheir values as shown in the accounting records of the Group and Company had been written down to an amountwhich they might be expected so to realise.

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Directors Report


STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS (Contd.)

At the date of this report, the Dire

annual report proton

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