Responsibility

CORPORATE responsibility 60 20 05 62 2005 ANNUAL REPORT DRB-HICOM BERHAD WE HELP MAKE THINGS BETTER 64 HUMAN RESOURCE DEVELOPMENT (203430-W) 66 INFORMATION TECHNOLOGY 67 CALENDAR OF EVENTS 61 20 05 2005 ANNUAL REPORT DRB-HICOM BERHAD (203430-W) 62 20 We Help Make Things Better 05 DRB-HICOM’S ADOPTION OF THE “PROFITABILITY WITH SOCIAL RESPONSIBILITY” CONCEPT IS 2005 ANNUAL REPORT DRB-HICOM BERHAD A REFLECTION OF ITS COMMITMENT AS A RESPONSIBLE CORPORATION, ENSURING THAT WHILE THE COMPANY WILL STRIVE TO MAXIMISE PROFITS FOR ITS SHAREHOLDERS, IT WILL ALSO CONTRIBUTE TO THE WELL-BEING OF SOCIETY AND THE NATION. (203430-W) DRB-HICOM’s adoption of the “Profitability with Social In line with the Company’s vision, DRB-HICOM Berhad Responsibility” concept is a reflection of its commitment and the companies under the Group, together with help as a responsible corporation, ensuring that while the from staff members and PUTERI DRB-HICOM, answered company will strive to maximise profits for its the call to aid victims of the Tsunami tragedy of 26 shareholders, it will also contribute to the well-being of December 2004, with contributions in the form of cash, society and the nation. As such, DRB-HICOM has never vehicles, goods and services totalling RM1.17 million. hesitated to make charitable contributions, even for the smallest amounts, in support and recognition of charitable organisations and non-governmental organisations (NGOs) for their commendable efforts to help the needy and the underprivileged. 63 20 From time to time, DRB-HICOM also contributes to The Semai BAKTI project is a joint initiative between 05 various activities with the objective of helping needy BAKTI and “Gabungan Wawasan Generasi FELDA” in 2005 ANNUAL REPORT DRB-HICOM BERHAD communities, specifically cancer patients and the aid of underprivileged children living in FELDA handicapped. settlements throughout the country. As one of its contributions, DRB-HICOM, through its In addition, DRB-HICOM and its subsidiaries have also subsidiary USF-HICOM (Malaysia) Sdn. Bhd., donated a continued to contribute to projects organised from time (203430-W) Mitsubishi Delica van worth RM91,000 to the “Yayasan to time by various foundations and charitable Budi Penyayang” who will be using the vehicle to organisations in the country. transport cancer patients. In line with the same objectives, once again DRB- HICOM donated two units of Mitsubishi Space Gear vans worth RM158,000.00 each which will be used as mobile clinics under the Semai BAKTI project. Human Resource Development INTRODUCTION THE YEAR UNDER REVIEW WITNESSED THE IMPLEMENTATION OF A SERIES OF PROGRAMMES AIMED AT FURTHER CONSOLIDATING DRB-HICOM BERHAD’S BUSINESS OPERATIONS TO MEET THE CHALLENGES POSED BY AN INCREASINGLY COMPETITIVE AND RAPIDLY EVOLVING BUSINESS 64 ENVIRONMENT. A STABLE REVENUE GROWTH, COMBINED WITH REDUCED MANPOWER, RESULTED IN HIGHER PRODUCTIVITY PER CAPITA. THE GROUP’S HEADCOUNT AT YEAR-END 20 STOOD AT 29,099 WITH 14,689 REPRESENTING THE SUBSIDIARIES. OVERALL, DESPITE THE TOUGH 05 BUSINESS ENVIRONMENT, OUR DEDICATED HUMAN RESOURCE HAS DELIVERED A VERY 2005 ANNUAL REPORT DRB-HICOM BERHAD COMMENDABLE PERFORMANCE. (203430-W) ENHANCING BUSINESS VALUE stewardship enhancement helps to streamline our operations to be consistent with corporate governance With the improvement of stakeholder value as our top requirements and ensure transparency in every aspect priority, our goal is to nurture a performance-driven of our business. work culture by enhancing and adding value to processes and functional deliveries. At the heart of these initiatives, Our organisational capabilities, coupled with our the Group Human Resource practitioners have been passion and relentless emphasis on quality, have further imbued with a need for a higher-level business transcended into the global market and attracted sense and responsiveness. new world-class franchises, producers and suppliers including Daimler Chrysler and General Motors. The Group operates on a devolved set-up, with the In addition, our manufacturing operations have Group Corporate Office providing a consultative-cum- earned the recognition of being the first-tier European advisory role to other business units. Information flow, automotive component suppliers practising VDA 6.3 engagement and relationship building exercises are the Quality Audit. This has further strengthened our cornerstone in our human capital management. While reputation and base as the single largest integrated policies remain firmly in place, we recognise the need automotive company in Malaysia. to be flexible to refine procedures to take into account the dynamics of a constantly changing marketplace, while strengthening our internal partnership. This PERFORMANCE IMPERATIVES PEOPLE WELLNESS & WORKPLACE HARMONY Internal interventions and tools have been installed to A disciplined workforce well versed with the ethos of modernise and upgrade our operating performance. moral conduct is fundamental towards attaining better Training and development opportunities are regularly business performance. Recognising the need to have a provided by our in-house Learning Centre and reliable social balance, the Group has been actively supporting external consultants to enhance the flexibility and the activities undertaken by its sports and recreation club. employability of our workforce. A special financial assistance scheme has been set up to encourage Continued worker participation in national-level continuous education. The Group continues to focus on gatherings and Hadhari programmes are manifestation knowledge management with a firm belief that such of our commitment towards fulfilling the nation’s 65 intangible assets can offer the Group a distinct agenda. Coupled with a harmonious working competitive advantage. environment promising fair treatment, our employees remain inspired and committed to their jobs. Our Nurturing our staff has resulted in a pool of talent relationship with the trade unions continues to bear that we can deploy laterally and vertically within the meaningful results with no labour unrests arising. 20 Group. Infusion of new challenges and development 05 assignments within the job scope are inherent attributes A special programme has been established to provide of our talent retention strategy. This ease of Group financial relief to employees or their close dependents 2005 ANNUAL REPORT DRB-HICOM BERHAD deployment, together with leadership enrichment, who are stricken with critical illnesses or other has facilitated succession management in realising new misfortunes. Several Group employees also received perspective on management continuity. financial aid to rebuild their livelihood disrupted by the tsunami incident, which wrecked havoc in the region in The performance management system encompasses the December. Further exercise of our good corporate (203430-W) Group, various business units and individual employees. citizenry is making available opportunities to suitable It has gained greater significance as the accountability undergraduates to equip them with the necessary pre- and performance indicators of senior management are employment skills. cascaded down. We believe in linking rewards and compensation with profitability and performance The Group advocates the importance of safety and targets. The Group upholds the maintenance of internal health at work areas with the implementation and equity with increments being pegged not only to compliance of regulatory and statutory requirements. performance but also to salary compa-ratios as well. The installation of OSHAS 18001 and ILO-OSH 2001 Safety and Health Management System and the ISO 14001 Environmental Management System are testament to our commitment to safeguarding and preserving the environment. Regular workplace audits and continuous training ensure that safety, health and environment remain as essential features of the Group’s operations. Information Technology AS PART OF A STRATEGIC ICT PLAN TO ELEVATE INFORMATION TECHNOLOGY UTILISATION ACROSS THE ENTIRE DRB-HICOM GROUP, THE COMPANY LAUNCHED TWO NEW ICT INITIATIVES DURING THE PERIOD UNDER REVIEW. THE PERIOD ALSO SAW THE COMPLETION OF TWO PREVIOUSLY INITIATED APPLICATIONS, WHICH BECAME OPERATIONAL DURING THE SAME PERIOD. 66 20 The Electronic Document Management programme As a follow-up to the group information security policy, 05 commenced with the installation and implementation the Company commenced work on the Business of the Enterprise Document Management System, which Continuity Planning program. When completed, this 2005 ANNUAL REPORT DRB-HICOM BERHAD enables users to collaborate by providing simultaneous initiative will provide a set of standard operating access to digital documents and a host of efficiency procedures to ensure the continuity of critical business enabling functionalities. operations during a disaster. A Shared Services model was launched with the To further improve corporate efficiency, a new workflow implementation of the Enterprise Resource Planning system was implemented to eliminate the need to move (203430-W) System for the automotive components manufacturing forms around the workplace and reduce the long cluster. Participating companies in the cluster access waiting time to get the forms endorsed. their system through the Group Virtual Private Network from a shared central system hosted by a group IT Most organisations deploy information technology to company. This model, while rationalising applications help run the business but the DRB-HICOM

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