Release - 26-08-11- Proton Posts Rm12 Million Profit Before Tax in q1 2011-2012

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FOR IMMEDIATE RELEASE

PROTON POSTS RM12 MILLION PROFIT BEFORE TAX IN Q

2011/2012

SUBANG JAYA, 26 August 2011 – PROTON Holdings Berhad today announced a

unaudited Group profit before taxation of RM12 million for the first quarter of its 2011/1

financial year ending 31 March 2012 against a profit of RM105 million posted in th

corresponding period last financial year.

During the quarter under review, the Group registered revenue of RM2.23 billio

compared to RM2.29 billion recorded during the corresponding period in the previou

financial year.

The decline in profit is largely attributable to higher expenses incurred by Lotus Grou

International Limited (LGIL) in the rebuilding of its brand and restructuring costs in th

current quarter.

LGIL is on target with its business plan and achievements to date are in line with th

company’s five-year business transformation exercise. This includes the firing of th

new V8 engine - which took place last week, full completion of the new Formula On

grade test track facilities in Hethel, presence of a merchandising web store with aextensive range of exclusive quality goods and near completion of its new facto

building to accommodate the production of new models.

The higher spending at LGIL, however, was partially offset by higher revenue from a

increase in PROTON’s domestic sales volume, which was approximately 3 percen

higher in the current quarter as compared to the corresponding period last year.



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However, when compared against the preceding quarter, the Group experienced

lower overall sales volume in the current quarter. This decline was due to th

normalisation of sales of the Inspira following its successful launch late last year. Th

Group also saw a drop in the financing approval rates by local financial institutions

June 2011, as a result of the Hire Purchase Act 1967 (HPA) amendme

implementation in the same month.

PROTON Holdings Berhad Group Chairman Dato’ Sri Mohd Nadzmi Mohd Salleh sa

PROTON is aggressively spearheading the transformation of LGIL. The late

development has been the signing of a new distributorship agreement in China which

also one of the fastest growing premium sports car markets in the world. The appointe

dealer, Lotus China Symphony Ltd, will invest in new dealerships throughout th

country to offer a full range of high performance Lotus cars to the Chinese market. LG

has also recently appointed new distributors in Australia and New Zealand.

Dato’ Sri Mohd Nadzmi added that the Group is encouraged by positive developmen

in large markets such as India and China. “These factors, together with our efforts to ta

into various other new and emerging markets, will spearhead PROTON’s glob

exercise. The primary focus will be on offering customers good quality, reliable, excitinand value for money products backed by strong after sales service, a formula that ha

enabled models like the Exora MPV for example, to successfully attract the interest o

buyers in competitive markets such as Indonesia and Thailand. In fact, in May 2011, th

Exora won Best Budget MPV of The Year at the Indonesia Automotive Awards.”

The Group is currently finalising the development of the CFE engine, as well a

preparations for the production of a new model - codenamed the P3-21A, in the firs

quarter of 2012. The Group had announced last month, its Production Preparatio

Readiness at the Tanjung Malim plant where the car will be manufactured.

“PROTON will continue to invest in the development of new technologies and improv

our operational efficiencies to sustain earnings while at the same time, remainin



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cautious of the unpredictability in the global markets, particularly, the anticipate

volatility of foreign currencies and fluctuations in fuel and raw materials prices,” he said

On the domestic front, although the economic outlook is expected to grow at a slowe

pace, the Group is cautiously optimistic with its sales target for the rest of the financia

year.

“We are expecting an improvement in sales figures as normalisation in bank approva

rates stabilises after concerns relating to the Hire Purchase Act 1967 (HPA

amendments have been addressed, especially in light of the reassurance by th

Minister of Domestic Trade, Cooperatives and Consumerism recently,” said PROTO

Holdings Berhad Group Managing Director Dato’ Sri Haji Syed Zainal Abidin Sye

Mohamed Tahir, who also pointed out that the recent MAA report indicated a 20 perce

increase in July sales after a slower June.

Dato’ Sri Haji Syed Zainal Abidin added that as the Malaysia Automotive Associatio

(MAA) has revised its total industry volume (TIV) forecast in 2011 from 618,000 t

608,000 units, and despite this modest cut, the current forecast for 2011 is still projecte

to be higher than TIV recorded in 2010. “We are also hoping to see the numberboosted, with planned launches of new models and improved overall buyer sentiment

in the domestic market in the second half of 2011.

“As for PROTON, the Group will intensify its sales and marketing activities for th

current product offerings, to increase sales volume, as well as to increase the Group

income from after sales-related products and services,” he said.

PROTON’s unaudited cash and bank balances balance as at 31 June 2011 rema

healthy at RM1.41 billion.



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FINANCIAL HIGHLIGHTS OF Q1 2011/2012 (As at 30 June 2011)

2011/2012

(30/06/2011) RM'000

2010/2011

(30/06/2010) RM'000

Profit before

taxation - individual

12,107 104,649

Revenue (Q1) -

individual

2,233,345 2,289,887

Cash, bank

balances & deposits

(unaudited)

1,413,260 1,594,285

Total Current

Assets (unaudited)

4,126,858 3,716,371



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About PROTON

PROTON, established in 1983, is Malaysia's largest manufacturer of automobiles, and the o

full-fledged OEM car manufacturer in South-East Asia. With operations in key markets from U

to the Middle East, and across South-East Asia and Australasia, especially in countries l

China and Iran, PROTON produces cars to suit a range of consumer demands and preferenc

Its offerings include versatile and reliable four-door family vehicles, two-door hatchbacks for t

young-at-heart, luxurious and stylish executive sedans, spacious and affordable multi-purpo

vehicles, as well as the world-renowned sports cars from Lotus. Most importantly, PROTO

models are now developed with Lotus Engineering, offering customers superior ride a

handling experience in every drive.

PROTON’s inception as a key driver of national development has seen the brand accelerate

learning curve through technology transfer with strategic partnerships and techni

collaborations. By listening to the needs of customers, PROTON cars are now steadily on tra

to achieve the mission for the future, with PROTON set to become a marque which builds ca

with passion and soul; cars that are a delight to drive - and a pleasure to own.

=== END ==

For further information, please contact Group Communications Division:

Izad Raya at hp: 012-233 0719 / tel: 03-8026 9690 / [email protected] Fadzil at hp: 012-212 8977 / tel: 03-8026 9683 / [email protected] Shari at hp: 017-632 7472 / tel: 03-8026 9048 / [email protected] Azneal Azam at hp: 016-322 6160 / tel: 03-8026 9673 / [email protected] Yana at hp: 012-211 2451 / tel: 03-8026 9670 / [email protected]

Release - 26-08-11- Proton Posts Rm12 Million Profit Before Tax in q1 2011-2012

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