SECTION [D]: PROSPECTS OF AUTOMOBILE MANUFACTURERS, DISTRIBUTORS AND DEALERS/cont'd

[5]. Oriental Holdings (ORIENT, 4006)

Nature of business: Conglomerate.
Major shareholder/s: Boon Siew S/B, EPF, PNB, Penang Yellow Bus Company Bhd.

Table 6: Summary of performance (RM mln) - 31 December

Oriental Holdings (Oriental) has a diverse portfolio of businesses that includes [a]. Distributing Hyundai Ascent, Elantra and Sonata in Malaysia and Honda motor vehicles in Singapore and Brunei, [b]. Dealing of Honda motor vehicles (excluding motorcycles) in Malaysia, [c]. Assembly of Honda motorcycles, [d]. Manufacturing plastic products for the automobile and electrical appliances industry, [e]. Cultivation of oil palm, [f]. Hotelier, and [g]. Property development.

The motor vehicle divisions (businesses in [a], [b] and [c] above) are the main sources of income for the group, contributing 64% of the group's sales and 56% of its profit. Manufacturing of plastic products contributes 8% to the group's profits, cultivation of oil palm (17%), hotel operations (5%), and investment holdings (14%).

50% of the motor vehicle division's sales are generated through distribution of Honda's motor vehicles in Singapore and Brunei, where Honda holds the sole distributor rights. The group's Honda motor vehicle dealership in Malaysia contributes another 25% to the motor vehicle division's top line. Import, assembly (done in-house by the group's assembly plant in Johor), and distribution of the 3 Hyundai models in Malaysia chalks up another 14% and the balance 11% of the division's sales come from the assembly of Honda motorcycles.

For the distribution of Honda motor vehicles in Singapore and Brunei, the motor vehicles are sourced from Japan and Thailand. As for Honda motor vehicles in Malaysia, the vehicles are sourced from Honda Malaysia S/B, a company where Oriental owns 15%.

[6]. Sime Darby (SIME, 4197)

Nature of business: Conglomerate.
Major Shareholder/s: Skim ASB, EPF.

Table 7: Summary of performance (RM mln) - 30 June

Sime Darby (Sime) is a conglomerate with interest in [a]. Oil palm plantations and downstream activities, [b]. Property development in Malaysia, Singapore, China and Australia and management in Malaysia and Singapore, [c]. Distribution of heavy equipment with exclusive distribution rights for Caterpillar heavy equipment in Malaysia, Singapore, Hong Kong, Brunei, People's Republic of China (Hong Kong and selected provinces), Australia, and the Philippines), [d]. Distribution and retailing of motor vehicles in Malaysia, Singapore, New Zealand, Australia, Thailand, and the People's Republic of China (including Hong Kong and Macau)), [e]. Oil & gas, power generation, and shipping, and [f]. Others like healthcare, insurance, tyres, logistics, etc.

Distribution of heavy equipment and motor vehicles are the main divisions for the group. Distribution of motor vehicles contributes 41% to the group's sales and 21% to the group's pretax profit. Distribution of heavy equipment contributes 28% of sales and 37% of pretax profit. For Sime's motor vehicle distribution operations in Malaysia, Sime is a distributor of Alfa Romeo and Hyundai (selected models) and a dealer for Ford, BMW and Land Rover motor vehicles. The group also owns associate stakes in companies that hold the distributor rights for Ford, BMW and Land Rover motor vehicles in Malaysia.

[7]. Tan Chong Motor Holdings (TCHONG, 4405)

Nature of business: Vehicles assembly, distribution and hire purchase financing.
Major shareholder/s: Tan Chong Consolidated S/B, Nissan Motor Co Ltd.

Table 8: Summary of performance (RM mln) - 31 December

Tan Chong Motor Holdings (Tan Chong), a company listed on the KLSE as early as 1974, is involved in [a]. Distributing Nissan and Renault motor vehicles, [b]. Hire purchase financing, and [c]. Property investment. Distributing motor vehicles contributes 99% of the group's sales and 92% of the profits.

The assembly of Nissan and Renault vehicles (the Kangoo model) is done internally by the group's assembly plant in Segambut. In 2005, Tan Chong invested RM15 mln to improve the efficiency of its Segambut plant. The group is also currently investing in a new plant to be located at Serendah. Costing RM191 mln, the new plant, constructed with supervision and assistance from Nissan Motor Co Ltd, is expected to commence operations in the second half of 2007. Tan Chong is also involved in the business of assembling bus chassis and sales of complete buses in Vietnam and hire purchase financing in Thailand.

[8]. UMW Holdings (UMW, 4588)

Nature of business: Distribution of automobile vehicles.
Major shareholder/s: Skim Amanah Saham Bumiputra, PNB, EPF.

Table 9: Summary of performance (RM mln) - 31 December

Listed on the KLSE as early as the 1960s, UMW Holdings (UMW) current list of businesses includes [a]. Distributing Toyota motor vehicles, [b]. Assembling Toyota, Daihatsu and Hino motor vehicles [c]. Manufacturing automobile parts and components (exhaust, shock absorbers, hydraulic pumps, etc), [d]. Distributing heavy equipment (Komatsu, Case, etc) and industrial equipment (Toyota, BT, Tennant, etc), [e]. Oil and gas upstream activities (pipe manufacturing, etc), and [f]. Others like hire purchase, insurance agency services, travel agency services, etc.

UMW also owns a 38% stake in Perusahaan Otomobil Kedua S/B, the distributor of Perodua motor vehicles and 49% holder of Perodua Auto Corporation S/B, the manufacturer of Perodua motor vehicles.

Distribution and assembly of motor vehicles represent the group's main income generator, contributing 71% of the group's sales and 64% of the group's profits. The oil & gas division and distribution of heavy and industrial equipment contributes 28% and 12% respectively to the group's profits.