7/24/08 2:42:10 PM 2008 Annual Report

Edaran Otomobil Nasional Berhad (119767-X) Annual Report 2008 www.eon.com.my

03-2052 8136 03-2052 8099 : : Tel Fax A Member Of Level 5, Wisma DRB-HICOM, No. 2, Jalan Usahawan U1/8, Seksyen U1, 40150 Shah Alam, Darul Ehsan EON-ar08_FA.indd 1 moving forward, driving results

The maze represents the challenges EON has undergone in finding a route to become clearly focused and determined as a Group, to gain leverage in becoming competitive. By surpassing all barriers, the Group is moving forward and driving results with resurging optimism and confidence. Annual Report 2008 Contents

EON Corporate Profile 2 Statement on Corporate Governance 38 Financial Calendar 2 Statement on Internal Control 47 Vehicles Distributed by EON 4 Risk Management 49 Report of the Board Audit Committee 50 Notice of Annual General Meeting 6 Additional Compliance Information 55 Statement Accompanying Notice Statement of Directors’ Responsibility of Annual General Meeting 7 for Preparing the Financial Statements 56 Financial Highlights 8 Five Year Group Financial Summary 9 Corporate Social Responsibility 57

Corporate Information 10 Year 2007/2008 Events 59 Corporate Structure 12 Board of Directors’ Profile 14 Financial Statements 63 Senior Management 22 Analysis of Shareholding 110 Chairman’s Statement 24 List of Thirty (30) Largest Shareholders 111 Managing Director’s Review of Operations 30 Properties of EON Group 112

EON – Branches 116 EONMOBIL & Euromobil 118 EON Auto Mart – Branches 119 Corporate Directory 120

Proxy Form • Edaran Otomobil Nasional Berhad 2 Annual Report 2008

Corporate Profile

Vision Core Values To be the I - integrity leading and the Carry out one’s roles and responsibilities in an honest and sincere manner most innovative C - Customer Focused automotive Create a positive experience for internal and external customers at all times retailer L - learning Organisation Encourage continuous learning and promote the exchange of knowledge within EON

Mission I - innovation To provide  Pursue new ideas to improve the quality of products and services offered excellent P - Pride customer service  Possess a sense of belonging and achievement of being part of the EON family

Dividends

FINAL Final Financial Year Ended Financial Period Ended 31 Dec 2006 31 Mar 2008 Financial Calendar Announcement Date 23 FEB 2007 27 May 2008 ended 31 March 2008 Entitlement Date 13 June 2007 11 SEPT 2008 Payment Date 6 July 2007 30 SEPT 2008 3

DRB–HICOM Berhad (“DRB-HICOM”) is Automotive one of ’s leading companies The Group’s leadership within this sector is reflected through niche segmentation and listed on the Main Board of Bursa continued strategic alliances with renowned global names such as Isuzu, Kawasaki, Honda, Malaysia Securities Berhad, playing , Mahindra, , Mitsubishi and . DRB–HICOM continuously develop an integral role in the nation’s road new business potentials and seek new alliances to strengthen their base further. to industrialisation. Services DRB–HICOM is diversified yet focused and have interests in key sectors of the economy The rapidly growing service-based industry represents new opportunities for mainly: DRB–HICOM. Their interests amongst others include, solid waste management, financial services, vehicle importation, cargo handling and leisure. • Automotive • Services Property & Infrastructure • Property & Infrastructure DRB–HICOM is extensively involved in retail, commercial and residential property development and has made strong inroads in the construction sector. • Defence Defence DRB–HICOM will continue to look for opportunities DRB–Hicom currently provides a variety of defence related work to the Malaysian Armed that will benefit the Group and the country. Forces as well as pursuing other opportunities.

Quarterly Announcement of Results General Meetings

29 MAY 2007 21 NOV 2007 29 MAY 2007 1st Quarter for the three (3) months 3rd Quarter for the nine (9) months ended 23rd Annual General Meeting ended 31 March 2007 30 September 2007 23 July 2007 22 AUG 2007 25 FEB 2008 Extraordinary General Meeting 2nd Quarter for the six (6) months 4th Quarter for the twelve (12) months ended 30 June 2008 ended 30 June 2007 31 December 2007 Extraordinary General Meeting 27 MAY 2008 27 AUG 2008 for the fifteen (15) months ended 31 March 2008 24th Annual General Meeting Edaran Otomobil Nasional Berhad 4 Annual Report 2008

Vehicles Distributed by 5 6

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN that the Twenty-Fourth Annual General Meeting (AGM) of the Company will be held at THE Glenmarie Ballroom, Holiday Inn Glenmarie Kuala Lumpur, No. 1, Jalan Usahawan U1/8, Seksyen U1, 40250 Shah Alam, Selangor Darul Ehsan on Wednesday, 27 August 2008 at 11.00 a.m. for the following purposes:

Ordinary Business practice notes issued from time to time by Bursa Malaysia or any 1. To receive and adopt the Audited Financial Statements for the other regulatory authorities, the mandate approved for renewal by financial period ended 31 March 2008 together with the Reports the shareholders of the Company on 29 May 2007 pursuant to of the Directors and Auditors thereon. (Resolution 1) paragraph 10.09 of the Listing Requirements of Bursa Malaysia, authorising the Company and its subsidiaries (“EON Group”) to 2. To approve the declaration of a final dividend of 13.5 sen per enter into the recurrent related party transactions of a revenue share less income tax at 26% for the financial period ended or trading nature (“Recurrent Transactions”) as set out in Section 31 March 2008. (Resolution 2) 2.1.1 of the Circular to Shareholders dated 4 August 2008 (“Circular”) with the related parties mentioned therein which are 3. To re-elect the following Directors who retire in accordance with necessary for the EON Group’s day-to-day operations, be and is the Company’s Articles of Association: hereby renewed AND THAT the scope of such renewed mandate be and is hereby extended to the Recurrent Transactions with under Article 103 new related parties as set out in Section 2.1.2 of the Circular (“Proposal”); (i) Y Bhg. Datuk Haji Mohd Khamil bin Jamil (Resolution 3) (ii) Encik Mohd Redza Shah bin Abdul Wahid (Resolution 4) AND THAT the EON Group is hereby authorised to enter into the Recurrent Transactions with the related parties therein provided that: (iii) Y Bhg. Datuk Syed Hisham bin Syed Wazir (Resolution 5) (a) the transactions are in the ordinary course of business on an under Article 110 arm’s length basis and on normal commercial terms which are (i) Mr. Keizo Ono (Resolution 6) not more favourable to the related parties than those generally (ii) Y Bhg. Tan Sri Marzuki bin Mohd Noor (Resolution 7) available to the public and are not detrimental to the minority shareholders of the Company; and (iii) Encik Nik Hamdam bin Nik Hassan (Resolution 8) (b) disclosure of the aggregate value of the transactions conducted 4. To consider and if thought fit, to pass the following resolution in during a financial year will be disclosed in the Annual Report accordance with Section 129 of the Companies Act, 1965: for the said financial year with particulars of the types of the Recurrent Transactions made and the names of the related “THAT Y Bhg. Tan Sri Saw Huat Lye who is over seventy (70) parties involved in each type of the Recurrent Transactions made years of age and retiring in accordance with Section 129 of and their relationship with the Company, the Companies Act, 1965 be and is hereby re-appointed as Director of the Company to hold office until the next AGM of AND THAT the authority conferred by such renewed mandate shall the Company.” (Resolution 9) continue to be in force until:

5. To approve the payment of Directors’ fees amounting to (a) the conclusion of the next AGM of the Company following the RM671,920 for the financial period ended 31 March 2008. forthcoming AGM at which the Proposal is approved, at which (Resolution 10) time it will lapse, unless further renewed by a resolution passed at the next AGM; 6. To re-appoint Messrs PricewaterhouseCoopers as Auditors of the Company and to authorise the Directors to fix their (b) the expiration of the period within the next AGM of the Company remuneration. (Resolution 11) after the forthcoming AGM is required to be held pursuant to Section 143(1) of the Act (but shall not extend to such extension as may be allowed pursuant to Section 143(2) of the Act); or Special Business: 7. To consider and if thought fit, to pass the following Ordinary (c) revoked or varied by ordinary resolution passed by the Resolution: shareholders in a general meeting of the Company,

“THAT subject always to the provisions of the Companies Act, whichever is the earlier; 1965 (“Act”), the Memorandum & Articles of Association of the Company, the Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Malaysia”), the regulations, guidelines and 7

AND THAT the Directors of the Company and/or any of them be and are hereby authorised to complete and do all such acts and things as they may consider expedient or necessary to give effect to the Proposal and the transactions authorized thereunder.” (Resolution 12) NOTES 1. Explanatory Notes On Special Business: NOTICE OF DIVIDEND PAYMENT The effect of the Resolution 12 is to NOTICE IS HEREBY GIVEN that the final dividend of 13.5 sen per share less income tax at renew the mandate for the Recurrent 26% in respect of the financial period ended 31 March 2008, if approved by the shareholders Transactions as set out in Section 2.1.1 of the Circular to Shareholders dated at the Annual General Meeting, will be paid on 30 September 2008 to the shareholders 4 August 2008 with the related parties whose names appear in the Record of Depositors of the Company at the close of business on mentioned therein and to extend the 11 September 2008. scope of the mandate to apply to Recurrent Transactions with new related parties as set out in Section 2.1.2 of A depositor shall qualify for entitlement to the dividend only in respect of: the Circular.

(a) Shares transferred into the depositor’s securities account before 4.00 p.m. on 2. Proxy: 11 September 2008 in respect of transfers; and (i) A member of the Company entitled to attend and vote at the meeting is entitled to appoint one or more (b) Shares bought on Bursa Malaysia Securities Berhad on a cum-entitlement basis proxies to attend and vote in his according to the Rules of Bursa Malaysia Securities Berhad. stead. A proxy need not be a member of the Company.

(ii) The instrument appointing the proxy By order of the Board must be deposited at the Office of the Registrar, ShareWorks Sdn Bhd, Chan Choy Lin (MIA 3930) No. 10-1, Jalan Sri Hartamas 8, Norzalili binti Mohd Yusof (LS 0005569) Taman Sri Hartamas, 50480 Kuala Lumpur not less than 48 hours Company Secretaries before the time appointed for holding the meeting. Shah Alam, Selangor Darul Ehsan 4 August 2008

Statement Accompanying Notice of Annual General Meeting

Pursuant to Paragraph 8.28 (2) of the Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Malaysia)

Names of directors who are standing for re-election/re-appointment:

Under Article 103 of the Company’s Articles of Association Under Section 129 of the Companies Act, 1965 Y Bhg. Datuk Haji Mohd Khamil bin Jamil Y Bhg. Tan Sri Saw Huat Lye Encik Mohd Redza Shah bin Abdul Wahid Y Bhg. Datuk Syed Hisham bin Syed Wazir  The details of the directors who are standing for re-election/ Under Article 110 of the Company’s Articles of Association re-appointment are set out in the Directors’ profile from page Mr. Keizo Ono 14 to page 21 of the Annual Report. Y Bhg. Tan Sri Marzuki bin Mohd Noor Encik Nik Hamdam bin Nik Hassan Edaran Otomobil Nasional Berhad 8 Annual Report 2008

Financial Highlights

Group Company 2007/2008 2006 2007/2008 2006 RM’000 RM’000 RM’000 RM’000

PROFITABILITY Revenue 2,322,322 1,834,885 1,909,720 1,512,767 Profit/(Loss) from operations 1 70,694 (20,768) 63,033 (34,675) Profit/(Loss) before taxation 116,127 4,464 70,522 (40,683) Profit/(Loss) attributable to equity holders 105,364 5,263 54,096 (42,721)

KEY BALANCE SHEET DATA Total assets 1,189,754 1,148,791 1,019,810 1,029,349 Cash and bank balances and deposits with financial institutions 383,519 228,969 372,770 217,113 Paid-up capital 248,993 248,993 248,993 248,993 Equity attributable to equity holders 879,771 1,021,597 734,517 929,439

FINANCIAL RATIOS Return on average equity attributable to equity holders (%) 11.1 0.5 6.5 (4.4) Return on average assets (%) 9.0 0.4 5.3 (3.4)

SHARE INFORMATION Basic earnings per share (sen) 42 2 22 (17) Gross dividend per share (sen) 13.5 137 13.5 137 Dividend less taxation (RM’000) 24,874 249,018 24,874 249,018 Net tangible assets per share (RM) 3.53 4.10 2.95 3.73 Price to earnings ratio 2 (times) 4.3 86.6 – – Price to book multiple 2 (times) 0.5 0.4 – – Share price – closing as at 31 March/December (RM) 1.80 1.83

1 Before finance cost, share of results of jointly controlled entities & associates, write-back/(allowance) for impairment of investment in an associate andnet gain on disposal of investments.

2 Based on closing price as at 31 March/31 December. 9

Five Year Group Financial Summary

2007/2008 2006 2005 2004 2003 RM’000 RM’000 RM’000 RM’000 RM’000

PROFITABILITY Revenue 2,322,322 1,834,885 3,094,103 3,901,173 4,987,051 Profit/(Loss) from operations 1 70,694 (20,768) 92,706 293,740 571,713 Profit before taxation 116,127 4,464 101,833 294,569 573,877 Profit attributable to equity holders 105,364 5,263 78,870 148,027 262,436

KEY BALANCE SHEET DATA Total assets 1,189,754 1,148,791 1,598,319 1,468,028 32,672,661 Cash and bank balances and deposits with financial institutions 383,519 228,969 377,469 557,842 3,703,815 Paid-up capital 248,993 248,993 248,993 248,993 244,714 Equity attributable to equity holders 879,771 1,021,597 1,051,214 1,165,245 2,257,662

FINANCIAL RATIOS Return on average equity attributable to equity holders (%) 11.1 0.5 7.1 8.6 11.6 Return on average assets (%) 9.0 0.4 5.1 0.9 0.8

SHARE INFORMATION Basic earnings per share (sen) 42 2 32 60 111 Gross Dividend per share (sen) 13.5 137 23 200 238 Dividend less taxation 2 (RM'000) 24,874 249,018 41,239 200,766 73,739 Net tangible assets per share (RM) 3.53 4.10 4.22 4.68 9.23 Price to earnings ratio 3 (times) 4.3 86.6 9.5 5.9 7.0 Price to book multiple 3 (times) 0.5 0.4 0.7 0.8 0.8 Share price – closing as at 31 March/December (RM) 1.80 1.83 3.00 3.54 7.80

1 Before finance cost, share of results of jointly controlled entities & associates, write-back/(allowance) for impairment of investment in associates and net gainondisposal of investments.

2 Excluding dividend in specie of EON Capital Berhad in 2004 and Jardine Cycle & Carriage Limited shares in 2003.

3 Based on closing price as at 31 March/31 December.

Significant events affecting results, assets, liabilities and equity: 2004 - Distribution of EON Capital Berhad (ECB) shares to shareholders. Accordingly, the results of ECB group were excluded from July 2004. Edaran OtOmObil nasiOnal bErhad 10 Annual Report 2008

Corporate Information as at 4 July 2008 11

BoArd of dirEcTors as at 4 July 2008

Y BHG. TAN SRI MARzUKI BIN MOHD NOOR MR. KEIzO ONO Chairman / Independent Non-Executive Director Non-Independent Non-Executive Director

Y BHG. DATUK SYED HISHAM BIN SYED WAzIR Y BHG. TAN SRI SAW HUAT LYE Managing Director Senior Independent Non-Executive Director

Y BHG. DATUK HAJI MOHD KHAMIL BIN JAMIL Y BHG. DATUK IR. (DR) AHMAD zAIDEE BIN LAIDIN Non-Independent Non-Executive Director Independent Non-Executive Director

ENCIK MOHD REDzA SHAH BIN ABDUL WAHID Y BHG. DATO’ ANWAR BIN AJI Non-Independent Non-Executive Director Independent Non-Executive Director

ENCIK NIK HAMDAM BIN NIK HASSAN Y BHG. DATUK ABDUL HAMID BIN SAWAL Non-Independent Non-Executive Director Independent Non-Executive Director

Y BHG. DATUK AzIYAH BINTI BAHAUDDIN MR. RIN NAN LUN Non-Independent Non-Executive Director (Alternate Director to Mr. Keizo Ono)

comPAny sEcrETAriEs soliciTors rEgisTrAr Ms. Chan Choy Lin Anad & Noraini ShareWorks Sdn Bhd Puan Norzalili binti Mohd Yusof Skrine & Co. No. 10-1, Jalan Sri Hartamas 8 Taman Sri Hartamas, 50480 Kuala Lumpur Tel : 03-6201 1120 Fax : 03-6201 3121 hEAd officE BAnKErs EON Head Office Complex EON Bank Berhad No. 2, Persiaran Kerjaya Malayan Banking Berhad sTocK ExchAngE lisTing Taman Perindustrian Glenmarie CIMB Bank Berhad Main Board of Seksyen U1, 40150 Shah Alam Standard Chartered Bank Malaysia Berhad Bursa Malaysia Securities Berhad Selangor Darul Ehsan (Listed since 26 July 1990) Tel : 03-7711 2211 Fax : 03-7803 0009 Stock Code: 4774 AudiTors PricewaterhouseCoopers rEgisTErEd officE Chartered Accountants invEsTors rElATions Level 5, Wisma DRB-HICOM Level 10, 1 Sentral, Jalan Travers, Tel : 03-2052 8136 Fax : 03-2052 8099 No. 2, Jalan Usahawan U1/8 Kuala Lumpur Sentral, Seksyen U1, 40150 Shah Alam 50706 Kuala Lumpur. Selangor Darul Ehsan Tel : 03-2173 1188 Fax : 03-2173 1288 wEBsiTE Tel : 03-2052 8136 Fax : 03-2052 8099 www.eon.com.my Edaran Otomobil Nasional Berhad 12 Annual Report 2008

Corporate Structure 13

Euromobil Sdn Bhd 100% EON Auto Mart Sdn Bhd 100% EONMobil Sdn Bhd 100% Automotive Conversion Engineering Sdn Bhd 100% EON Properties Sdn Bhd 100% Johnson Controls Automotive Holding (M) Sdn Bhd 30% Hicom Megah Sdn Bhd 36% SRT-EON Security Services Sdn Bhd 40% Proton Parts Centre Sdn Bhd 40% Mitsubishi Motors Malaysia Sdn Bhd 48% Edaran Otomobil Nasional Berhad 14 Annual Report 2008

Board of Directors’ Profile

Y Bhg. Tan Sri Marzuki bin Mohd Noor Chairman / Independent Non-Executive Director

Y Bhg. Tan Sri Marzuki bin Mohd Noor, 60, a Malaysian, was appointed as Independent Non-Executive Director on 2 June 2008 and is the Chairman of the Company effective 1 July 2008. He holds a B.A. (Honours) from the University of Malaya, Malaysia.

He commenced his career in the Administrative and Diplomatic Service of Malaysia in 1972 and retired from the service in August 2006. From 1972 to 1988, he has served as Second/First Secretary to the Embassy of Malaysia in Rome, Baghdad, Assistant High Commissioner in Chennai, India, Commissioner in Hong Kong and later as Minister-Counsellor/Minister in Brussels, Belgium in 1988.

In 1990, Tan Sri Marzuki was appointed as Deputy Director General ASEAN I, Ministry of Foreign Affairs Malaysia and later in 1992 as Ambassador of Malaysia to Argentina with concurrent accreditation to Paraguay and Uruguay. In 1996 he was appointed as High Commissioner of Malaysia to India (concurrently accredited as Ambassador to Nepal). He was also the Ambassador of Malaysia to Japan from 1999 to July 2006 before his retirement.

Tan Sri Marzuki also sits on the board of DRB-HICOM Berhad, Horsedale Development Berhad, HICOM Holdings Berhad and several private limited companies.

Tan Sri Marzuki has not attended any Board meeting of the Company held in the financial period ended 31 March 2008 following his appointment to the Board on 2 June 2008. 15

Y Bhg. Datuk Syed Hisham bin Syed Wazir Y Bhg. Datuk Haji Mohd Khamil bin Jamil Managing Director Non-Independent Non-Executive Director

Y Bhg. Datuk Syed Hisham bin Syed Wazir, 54, a Malaysian, Y Bhg. Datuk Haji Mohd Khamil bin Jamil, 52, a Malaysian, was appointed as Managing Director of the Company on is a Non-Independent Non-Executive Director. He was appointed to the 12 May 2005. Board on 18 October 2005. He is also a member of the Nomination and Remuneration Committees. Datuk Syed Hisham holds an MBA from Ohio State University, U.S.A. with Beta Gamma Sigma accredition as well as a BSc in Mechanical Datuk Haji Mohd Khamil holds a Bachelor of Laws (Honours) Degree Engineering from Plymouth University, U.K. from University of London and is a Barrister-at-Law (Honours) at The Gray’s Inn, England and was called to the English Bar in 1993. Prior to joining EON, Datuk Syed Hisham has had vast exposure in the motor industry. He was the President/Chief Operating Officer Datuk Haji Mohd Khamil had his first executive career with Bank of Honda Malaysia Sdn Bhd from 2003 to April 2005. He has also Bumiputra Malaysia Berhad from August 1980 until December 1989. served DRB-HICOM Export Corporations Sdn Bhd as General Manager, He was called to the Malaysian Bar in September 1990 and was a International Business from 1998 to 2000, Director of Proton Cars practicing partner of several legal firms before venturing into business (U.K.) Pte Ltd from 1997 to 1998 and General Manager of Proton in 2001. Corporations Sdn Bhd from 1995 to 1998. Prior to this he was with PROTON Berhad since 1983. Datuk Haji Mohd Khamil is the Group Managing Director of DRB-HICOM Berhad and sits on the Boards of several companies As the Managing Director, Datuk Syed Hisham also serves on the within DRB-HiCom Group, the Board of Bank Muamalat Malaysia Board of several companies within the EON Group. He is currently a Berhad and several private limited companies. Fellow of Institute of the Motor Industry, U.K. and a Council Member of the Malaysian Automotive Association. Dato’ Haji Mohd Kamil has 10% shareholding in Etika Strategi Sdn Bhd, a deemed substantial shareholder of the Company. Datuk Syed Hisham attended all the seven (7) Board meetings held in the financial period ended 31 March 2008. Datuk Haji Mohd Khamil attended six (6) out of seven (7) Board meetings held in the financial period ended 31 March 2008. Edaran Otomobil Nasional Berhad 16 Annual Report 2008

ENCIK MOHD REDZA SHAH BIN ABDUL WAHID Y Bhg. DATUK AZIYAH BINTI BAHAUDDIN Non-Independent Non-Executive Director Non-Independent Non-Executive Director

Encik Mohd Redza Shah bin Abdul Wahid, 45, a Malaysian, Y Bhg. Datuk Aziyah binti Bahauddin, 58, a Malaysian, is a Non-Independent Non-Executive Director. He was appointed is a Non-Independent Non-Executive Director. She was appointed to to the Board on 8 December 2005 and is a member of the the Board on 30 January 2004. Audit Committee. Datuk Aziyah holds a Bachelor of Arts degree in Economics Encik Mohd Redza holds a Bachelor of Science in Economic in from University of Malaya. Datuk Aziyah began her career in the Industry and Trade from London School of Economics, University civil service in 1974. She has been in the Ministry of Finance of London. He also holds a Master of Science of Economics in since service except for five years in the Government Procurement International Banking and Finance from University of Wales, Cardiff Management Division, the rest of her career has been with the and is an Associate Chartered Accountant (ACA). He is a Member of Tax Analysis Division. the Institute of Chartered Accountants in England and Wales (ICAEW). Currently, she is the Under Secretary, Tax Analysis Division, Ministry Encik Mohd Redza is the Executive Director/Group Chief Operating of Finance. Datuk Aziyah also sits on the Boards of Malaysia Officer of DRB-HICOM Berhad and sits on the Boards of several Thailand Joint Authority, Putrajaya Corporation, Malaysian Industrial companies within DRB-HiCom Group. Prior to joining DRB-HICOM, Development Authority (MIDA), Inland Revenue Board (LHDN) and he was the Group Chief Executive Officer of Tradewinds Corporation (Alternate Director). Berhad from 2002 to November 2005 and Acting Chief Executive Officer of Tradewinds (M) Berhad from 2004 to 2005. He has also served Datuk Aziyah attended six (6) out of seven (7) Board meetings held in several other companies such as Silterra Malaysia Sdn Bhd, Khazanah the financial period ended 31 March 2008. Nasional Berhad, Arab Malaysia Corporation Berhad and Touche Ross & Co., London.

Encik Mohd Redza attended all the seven (7) Board meetings held in the financial period ended 31 March 2008. 17

Mr. KEIZO ONO Non-Independent Non-Executive Director

Mr. Keizo Ono, 59, a Japanese, is a Non-Independent Non-Executive Director. He was appointed to the Board on 7 January 2008.

Mr. Keizo Ono graduated from Hitotsubashi University, Tokyo in March 1972 with a Degree in Commercial Science.

Mr. Keizo Ono joined Mitsubishi Corporation in 1972 and was assigned to Indonesia as an adviser in PT. Stacotia Berlian Finance from January 1992 until February 1997. In March 1997 Mr. Keizo Ono resumed office in Mitsubishi Corporation where he was appointed the leader of domestic team of Motor vehicle division in Tokyo. Later, he was appointed the President Director of PT. Dipo Star Finance in Indonesia from July 1999 to September 2007.

Mr. Keizo Ono is currently the Chief Executive Officer of Mitsubishi Motors Malaysia Sdn Bhd.

Mr. Keizo Ono attended two (2) Board meetings in the financial period ended 31 March 2008 following his appointment to the Board on 7 January 2008. Edaran Otomobil Nasional Berhad 18 Annual Report 2008

Y Bhg. TAN SRI SAW HUAT LYE Senior Independent Non-Executive Director

Y Bhg. TAN SRI Saw Huat Lye, 73, a Malaysian, is a Senior Independent Non-Executive Director. He was appointed to the Board on 4 September 2001. He is also the Chairman of the Audit Committee and a member of the Remuneration Committee.

Tan Sri Saw is an Economics graduate of the University of Malaya (Singapore) and has attended the Advanced Management Programme at the Harvard Business School, Boston, U.S.A. He began his career with the Malayan Home and Foreign Service in 1958 and served the Malaysian Government in various capacities as Assistant District Officer in Kinta South, Assistant State Secretary in Perak, Chairman of the Town Council in Taiping, Assistant Federal Commissioner of Lands and Deputy Secretary-General in the Ministry of Transport. After his retirement from the Civil Service in 1971, he was invited by the Government to set up Malaysian Airline System (MAS) and was its first General Manager and Chief Executive, commencing in 1971. He retired from MAS in 1982. He has sat on the Boards of various companies, including Development and Commercial Bank Bhd, Malaysia-Singapore Airlines, Malaysian Helicopter Services Bhd and Naluri Corporation Bhd.

Tan Sri Saw is currently Chairman of Guinness Anchor Bhd and a director in non-listed company, Huay Ferng Sdn Bhd. He is also a fellow of the Chartered Institute of Transport (London) since 1975.

Tan Sri Saw attended six (6) out of seven (7) Board meetings held in the financial period ended 31 March 2008. 19

Y Bhg. DATUK IR. (DR) AHMAD ZAIDEE BIN LAIDIN Y Bhg. DATO’ ANWAR BIN AJI Independent Non-Executive Director Independent Non-Executive Director

Y Bhg. Datuk Ir. (Dr) Ahmad Zaidee bin Laidin, 65, a Malaysian, Y Bhg. Dato’ Anwar Aji, 58, a Malaysian, is an Independent is an Independent Non-Executive Director. He was appointed to the Non-Executive Director. He was appointed to the Board on 1 March Board on 4 September 2001. He is also the Chairman of the Nomination 2006. He is also the Chairman of the Remuneration Committee and a Committee and a member of the Remuneration Committee. member of the Nomination Committee. Datuk Ir. (Dr) Ahmad Zaidee holds a Masters in Science in Technological Economies (Management & Industrial Science), University of Stirling He graduated from University of Malaya with Honours in Economics and is a registered Professional Engineer with the Board of Engineers in 1973 and obtained his Masters in International Studies from Ohio Malaysia as well as a Chartered Electrical Engineer (U.K). University, USA in 1992. He started his career with the Government Internationally, he is a member of the Institution of Electrical Engineers, and has held various posts in the Ministry of Trade and Industry, the and the Institute of Management Services, U.K. He is a Fellow of the Prime Minister’s Department and the Ministry of Finance. He joined Institution of Engineers, Malaysia, as well as Academy of Sciences Khazanah Nasional Bhd in 1994 until May 2004. Malaysia and is currently serving in the councils of both bodies. Dato’ Anwar is currently the Chairman of Faber Group Bhd and sits He was awarded the Degree of Doctor of the University by University on the Board of several private limited companies. of Stirling, the Honorary Degree of Doctor of Technology by Oxford Brookes University, and the Honorary Doctor of Letters by the Manchester Metropolitan University as well as Honorary Professor of Dato’ Anwar attended all the seven (7) Board meetings held in the Napier University, United Kingdom. financial period ended 31 March 2008.

Datuk Ir. (Dr) Ahmad Zaidee is the Past President of the Federation of Engineering Institutions of Southeast Asia and the Pacific (FEISEAP) and a Past President of Institution of Engineers, Malaysia (IEM) as well as the and Honorary Fellow of the ASEAN Federation of Engineering Organizations.

He is currently a Board Member of MMC-Gamuda JV, SMART project, Chairman of MMC OIL & Gas Engineering Sdn Bhd and Chairman of ERINCO Sdn Bhd.

Academically, Datuk Ir. (Dr) Ahmad Zaidee is a visiting Professor in Electrical Engineering to Universiti Malaysia Pahang, a Vice President of the Academy of Sciences Malaysia and a Board Member of Open University Malaysia and Meteor Learning Sdn Bhd. He is also Chairman and Director of Malay Education and Development Research Institute, an NGO. He is also serves on the Board of UNITEN.

Datuk Ir. (Dr) Ahmad Zaidee attended all the seven (7) Board meetings held in the financial period ended 31 March 2008. Edaran Otomobil Nasional Berhad 20 Annual Report 2008

Y Bhg. DATUK ABDUL HAMID BIN SAWAL Independent Non-Executive Director

Y Bhg. Datuk Abdul Hamid bin Sawal, 60, a Malaysian, is an Independent Non-Executive Director. He was appointed to the Board on 22 March 2006 and is a member of the Audit Committee.

He graduated from University of Malaya with Honours in Economics majoring in Accounting and obtained his Masters in Business Administration, majoring in Agribusiness from University of Santa Clara, California, USA. He started his career with the Government and has held various posts in the Ministry of Finance, the Ministry of Primary Industries and the Economic Planning Unit in the Prime Minister’s Department. He was seconded to the Malaysian Rubber Board in January 2000 and served until his retirement from the public service in December 2005. He was also Chairman of Malaysian Rubber Exchange, RRIM Consult Corporation, Tun Abdul Razak Research Centre, UK and Elgem Technology Ltd., UK.

Datuk Abdul Hamid also sits on the Board of AKN Technology Bhd and Shapadu Corporation Sdn Bhd.

Datuk Abdul Hamid attended all the seven (7) Board meetings held in the financial period ended 31 March 2008. 21

ENcik nik hamdam bin nik hassan Puan Norzalili binti Mohd Yusof Ms. Chan Choy Lin Non-Independent Non-Executive Director Company Secretaries

Encik Nik Hamdam bin Nik Hassan, 47, a Malaysian, is a Non-Independent Non-Executive Director of the Company. He was appointed to the Board on 2 June 2008.

He holds an Advanced Diploma in Business Administration from the Institute of Technology MARA, Malaysia and a Master of Science, Business Administration from the University of Wales, Institute of Science and Technology Cardiff, Wales, United Kingdom.

Encik Nik Hamdam started his career in DRB-HICOM Group with the Corporate Planning Division in 1985. Thereafter, he was seconded to Perusahaan Otomobil Nasional Berhad (PROTON) in 1987 and headed the PROTON Wira Project in 1990 as a Project Leader. In 1996, he was appointed as Deputy General Manager at PROTON Export’s Arm, PROTON Corporation Sdn Bhd. In 1998, he held the position of Deputy General Manager, Planning & Business Development at DRB-HICOM Export Corporation Sdn Bhd. In October 2000, he was appointed as Deputy General Manager, Sales & Distribution to HONDA Malaysia Sdn Bhd (HONDA) and promoted to General Manager in 2003. Prior Note: to his current position, he was the President/Chief Operating Officer of None of the Directors have any family HONDA Malaysia Sdn Bhd from 2005 until 2006. He is currently the relationship with any director and/or major Head of Automotive Distribution of DRB-HICOM Berhad. shareholders of the Company and have no conflict of interest with the Company and no Encik Nik Hamdam has not attended any Board meeting of the convictions for offences within the past ten Company held in the financial period ended 31 March 2008 following (10) years. his appointment to the Board on 2 June 2008. Edaran Otomobil Nasional Berhad 22 Annual Report 2008

Senior Management

ENCIK BadRUl Feisal BIN abdul Rahim Chief Operating Officer Mr. Lim Teck Gam Chief Financial Officer 23

[ 7 ] [ 11 ] [ 5 ] [ 6 ] [ 10 ] [ 13 ] [ 4 ] [ 9 ] [ 12 ] [ 8 ] [ 1 ] [ 2 ] [ 3 ]

1 Encik Ahmad Khuzaimi BIN Abdul Rashid 8 Mr. Nishdev Singh Senior Manager, Managing Director’s Office Head, -Euromobil Sdn Bhd

2 YM Tengku Zainudin bin Tengku Jaafar 9 Encik Mohd AsRi BIN Jusoh Senior Manager, Automotive Conversion Engineering Sdn Bhd Head, Strategic & Corporate Planning

3 Puan Norchahya binti Ahmad 10 Encik Ahmad Zaini bin Mohd ArifFin Senior Manager, Chief Operating Officer’s Office Manager, EON Properties Sdn Bhd

4 Encik Kamarudin Bin Abdul KadiR 11 Encik Abdul wahab BIN Mohd Noor Head, Non Proton Operations Head, Proton Operations

5 Mr. Kulendran Palachandran 12 Cik Marhalisa binti Matari Head, Audi-Euromobil Sdn Bhd Manager, Management Information System

6 Mr. Lim Meng Thong 13 Encik Ahmad kamal BIN Abdul Majid Head, EONMobil Sdn Bhd Head, After Sales Support 7 Mr. Loh Ling Howe Head, EON Auto Mart Sdn Bhd Edaran Otomobil Nasional Berhad 24 Annual Report 2008

Dear Shareholders, This is my first letter to you as your new Chairman following my appointment on 1 July 2008. I am pleased to report that despite a volatile global landscape and an extremely competitive , the Board of Directors and Management of EON Berhad continued to maintain the Company’s profitability and deliver value to shareholders in the period under review.

The measures undertaken these past two years to redefine EON For the period under review, the EON Group posted a net profit of through rationalising our operations and streamlining our resources, RM105.4 million. These results were mainly attributable to higher have been painful but necessary. Our efforts and perseverance sales volume, higher earnings from jointly controlled entities and have borne fruit and we have emerged an even leaner, much more gains from the sale of properties. Excluding the gains on sales of efficient entity that is very much in tune with the evolving automotive properties totalling RM34.3 million, the underlying net profit for the landscape. Even as we continue to realign ourselves to changing 2007/2008 financial period improved to RM71.1 million as compared market conditions, we continue to set our sights on bolstering our to RM5.3 million in financial year 2006. position as a key automotive player and on delivering results.

DIVIDEND PAYOUT MOVING FORWARD, DRIVING RESULTS We remain committed to delivering value to our shareholders. In Your Board of Directors continues to keep close tabs on ways respect of the financial period ended 31 March 2008, the Board and means to ensure EON’s business network and organisation of Directors is pleased to propose a final dividend of 13.5 sen structure remain profitable, productive and efficient. Following the per share less income tax at 26% (2006 : 137 sen per share cost-reduction measures implemented in 2006 which involved a less 27% tax). The final dividend is subject to the approval of the Voluntary Staff Separation exercise, the closure of non-profitable Company’s shareholders at the forthcoming Annual General Meeting branches, the sale of surplus assets and the outsourcing of of the Company. activities, we undertook further cost-reduction initiatives towards the end of 2007. CORPORATE DEVELOPMENTS Going forward, the Board will continue to focus on rationalising Proposed De-Listing Of EON our business operations to strengthen our position for future growth. We are confident that these measures will help move us During the period under review, EON became a subsidiary of HICOM forward and help drive our results as we ride out any short-term Holdings Berhad (HICOM), subsidiary of DRB-HICOM following market fluctuations. HICOM’s purchase of a 20.09% equity stake in EON from Jardine Strategic Malaysia Investment Pte Limited. HICOM issued a General Offer dated 21 November 2007 for the remainder of EON’s shares FINANCIAL PERFORMANCE held by the public. At the close of the General Offer on 18 January 2008 HICOM’s stake reached 79.05%. In line with the change of the Company’s financial year-end from 31 December to 31 March, this Annual Report covers the 15-month financial period beginning 1 January 2007 and ending 31 March 2008 (the 2007/2008 financial period).

Chairman’s Statement 25 Edaran Otomobil Nasional Berhad 26 Annual Report 2008

Consequently, trading of EON shares was suspended on 11 March Technical Expertise Expanded 2008 and HICOM on 24 March 2008 served a proposal to EON’s Our technical training centre, Akademi Saga, has been tasked Board to de-list EON Berhad. In an Extraordinary General Meeting with continuously developing new training strategies and improving held on 30 June 2008, our shareholders resolved that EON would after-sales multi-brand technical training. Students are trained to maintain its listing status. With the continued trust, confidence and properly diagnose problems and prescribe the necessary solutions support that our shareholders have shown us, we remain committed for repairs, service and maintenance. In 2007, Akademi Saga had a to delivering value to all of you. total of 1,267 students under its wing and it has since expanded its coverage to Batu Pahat, Alor Setar, Kuantan and Kota Kinabalu. Memorandum of Understanding with Proton On 2 May 2008, EON signed a Memorandum of Understanding with Human Resources Realigned Berhad to work towards formalising a rationalisation As part of EON’s ongoing efforts to further right-size its of the distribution network and service centres for Proton cars. EON operations and improve efficiency, a Mutual Separation Scheme is fully committed to seeing this initiative through to its end. (MSS) was offered to employees in August 2007. Under the MSS benefits, we provided outplacement assistance to employees who accepted the scheme. STRATEGIC INITIATIVES Amid the challenging and competitive automotive landscape that Customer-centric Activities Strengthened defined 2007/2008, EON Group embarked on various strategic In our move to be more customer-centric, two new Regional Part initiatives to advance our various businesses. Centres in Kota Bahru and Miri were established in 2007 and 2008 apart from Kuching, Kota Kinabalu, Johore Bahru, Butterworth and EON Brand Reinforced Glenmarie to provide high-quality service and ensure timely delivery The EON brand has been in the market for more than two decades of spare parts to customers. and we remain committed to reinforcing brand awareness among our audiences through various initiatives. Over the financial period, Customer service is an integral part of the Company’s value we undertook brand-strengthening initiatives that included improving proposition and we continue to proactively solicit feedback from the services offered to existing customers and attracting new customers via surveys carried out by our customer service officers. customers to EON under an improved Sahabat EON programme. The After Sales Service division has a major role to play in retaining We also participated in nationwide campaigns as a multi-brand customer goodwill and the division actively promotes loyalty automotive company and promoted business opportunities for programmes to forge stronger links with our customers. Sales and After Sales. 27

AWARDS AND RECOGNITION Looking ahead, the Malaysian Automotive Association (MAA) forecasts In August 2007, together with DRB-HICOM Berhad, we participated that TIV will grow by 4.7% to 510,000 units in 2008. According to an in the 50th Merdeka Expo at the Putra World Trade Centre in MAA announcement in April 2008, the TIV for the first quarter ended conjunction with Malaysia’s 50th Independence Day. Both DRB- March 2008 rose to 130,774 units as compared to 104,950 units HICOM and EON, were jointly named the “Most Entrepreneurial” in the corresponding quarter in 2007, representing an improvement booth at the 50th Merdeka Expo. of approximately 24.6%. The recovery in TIV was driven by several factors, including the introduction of new models to the mainstream The year 2007 also saw EON Berhad’s ISO 9001:2000 Certification market and the fulfilment of backlog orders. being renewed for the fifth year in a row, thus reflecting our adherence to strict international standards in our operational processes. Strategy Going Forward Going forward, we are committed to pursuing our long-term growth strategy of being an agile, robust and customer-centric entity while PROSPECTS maintaining our multi-brand retailer position. Stepping up to the next Malaysian Economy level, EON Group will review its business model and fine-tune its strategy in an effort to stay relevant to the industry. For the year 2008, Bank Negara had earlier forecast gross domestic product growth of approximately 5% to 6% for the Malaysian Our new business model will incorporate concepts that will economy. Notwithstanding the turbulent global climate, the Malaysian improve the Group’s competitiveness even as we benchmark economy grew at a faster-than-expected rate of 7.1% in the first ourselves against high-calibre automotive players. We will continue quarter of 2008, fuelled by domestic demand. Over the next three to train and empower our sales and after sales personnel by to six months we anticipate that consumers might tighten their developing and enhancing their competencies in product knowledge discretionary spending as they adjust to inflationary pressures and and customer service. It is imperative that the Group’s employees the increase in the cost of living caused by rising fuel prices and are equipped with the requisite knowledge and skills to face the other essential commodities. challenges ahead.

Auto Industry The Total Industry Volume (TIV) of motor vehicles sold in Malaysia for the year 2007 stood at 487,176 units against 490,768 units registered in 2006, a drop of 0.7%. Passenger vehicle sales totalled 442,885 units which represented a 91% share of TIV in 2007. Edaran Otomobil Nasional Berhad 28 Annual Report 2008

The rationalisation efforts over the past two years have done We would also like to extend our heartfelt gratitude to Mr. Adam the Company good and the Board is convinced that even as we Phillip Charles Keswick who resigned on 31 March 2007, Mr. proactively implement a new business strategy, we will be in a Benjamin William Keswick who resigned on 14 November 2007, YBhg strong position to maintain our competitive edge and ensure greater Datuk Khalid bin Ismail who resigned on 12 December 2007 and Mr. efficiency. Rest assured, that we at EON will work hard to take the Fumihiko Minami who ceased from being an alternate director to Mr. Company to new heights of success while creating value for our Rin Nan Lun on 7 January 2008. We thank these gentlemen for their many loyal shareholders. worthy contributions during their tenure on the Board and bid them the very best in their future endeavours.

APPRECIATION On behalf of the Board of Directors, I would like to welcome On behalf of my fellow Directors, I would like to thank all our onboard Mr. Keizo Ono and Encik Nik Hamdam bin Nik Hassan who customers and shareholders for their patience, loyalty and were appointed to the Board on 7 January 2008 and 2 June 2008 support and we look forward to another mutually beneficial year respectively. We look forward to their contributions. of growth together. In closing, I wish to thank our employees for their loyalty and Our partners and principals, Proton Edar Sdn Bhd, Audi AG, Hyundai- perseverance through the last fifteen months as we made the Motors Sdn Bhd, Mitsubishi Corporation, Mitsubishi necessary market-driven adjustments to our sales and after Motors Malaysia Sdn Bhd, Volkswagen Group Malaysia and Suzuki sales network. We are now on the path to a profitable and Malaysia Automobile Sdn Bhd, as well as our dealers, suppliers, brighter future. contractors and the government authorities, have provided us with expertise, advice and support which has made us more resilient and capable of meeting the challenges ahead. We thank them all for their Thank you. trust and confidence in our business. TAN SRI MARZUKI BIN MOHD NOOR On behalf of the Board of Directors, the senior management and CHAIRMAN all employees, I would like to take this opportunity to register our appreciation to our outgoing Chairman YBhg Tan Sri Ab Rahman bin Omar for the instrumental role he has played in steering EON through this challenging period. Thanks to his guidance, EON has moved progressively forward towards success. We bid him a fond farewell. 29 Edaran Otomobil Nasional Berhad 30 Annual Report 2008

Dear Shareholders, 2007 marked our twenty-third year in the automotive business and EON’s evolution into an even more productive and competitive entity. In the 15-month financial period under review, we undertook measures to further streamline our operations as well as become more cost effective, efficient and productive amidst the challenges of a highly competitive marketplace. The theme of our 2008 Annual Report – “Moving Forward, Driving Results” – aptly captures the renewed focus, energy and impetus evident in all the Group’s operating units following our rationalisation and streamlining initiatives.

OPERATING ENVIRONMENT GROUP PERFORMANCE The period under review saw the automotive market taking off at a For the 15-month financial period ended 31 March 2008, EON Group sluggish pace with low trade-in values for used cars persisting from achieved total revenue of RM2,322.3 million and a profit before 2006 and stricter loan approvals contributing to weak consumer taxation (PBT) of RM116.1 million. This PBT was mainly derived sentiment. However, there was an improvement in vehicle sales in from higher sales volume, higher contributions from jointly controlled the second half of the year and that momentum continued into the entities and gains on the sale of properties. first quarter of 2008. For the financial period ended 31 March 2008, net profit attributable In the passenger car segment of the automotive market, EON gained to shareholders stood at RM105.4 million while basic earnings per traction with the debut of the Persona in August 2007. As a result, share was 42 sen. EON captured 9.7% market share.

2008 saw the birth of the New Saga, a replacement for Proton’s EON BERHAD most saleable model, the Iswara. Following overwhelming public For the period under review, the Company recorded revenue of response, we sold 2,522 units of the New Saga thereby increasing our RM1,909.7 million and PBT of RM70.5 million. passenger car market share to 9.9% in the first quarter of 2008.

EON’s cost-saving initiatives in the period under review primarily New Vehicle Sales involved the disposal of surplus properties, the relocation of network branches to more strategic locations, and the closure of non- According to the Malaysian Automotive Association (MAA), the performing branches. As a result, EON is today a much leaner, more Malaysian automotive industry registered Total Industry Volume (TIV) entrepreneurial and more focused organisation. We are in a better of 487,176 units in 2007, a decline of 0.7% from the 490,768 units position to take on the challenges of the new automotive arena and registered in 2006. However, Proton’s sales increased by 1.8% to improve shareholders’ value. 117,624 units in 2007 over 115,551 units in 2006. In the first quarter of 2008, TIV came in higher at 130,774 units, an increase of 25% over 104,950 units in the preceding quarter.

Managing Director’s Review of Operations 31 Edaran OtOmObil nasiOnal bErhad 32 Annual Report 2008

Total sales volume for passenger vehicles, excluding the commercial AfTEr sAlEs sErvicE segment of the market, came in lower at 442,885 units, a 0.7% The After Sales division registered service throughput of 333,181 reduction or 3,287 units lower than the 446,172 units registered units in the period under review. Of this total throughput, EON in 2006. The passenger vehicle segment includes passenger cars, branches accounted for 56% or 260,105 units and our Franchised window vans, multi-purpose vehicles and four-wheel drive/sport Service Dealers registered the remaining 44%. Collision utility vehicles. repair throughput at our branches touched 7,988 units over the same period. For the 15-month period under review, EON’s sales of Proton vehicles were higher at 45,916 units compared to 36,632 units over In line with ongoing efforts to provide excellent service quality to a 12-month period in 2006. However, EON’s share of the passenger customers and to capture more throughput, After Sales relocated car market in 2007 at 9.5% marked a marginal decline from the two services centres to locations that were deemed more convenient 10.0% market share experienced in 2006. For the three months to customers. EON’s after sales network now comprises 32 branches from January to March 2008, EON’s share of the passenger car nationwide, 185 Franchised Service Dealers and 78 parts dealers. market was 9.9%. EON After Sales anticipates that 2008 will be a challenging year and A more effective working relationship with Proton Edar has resulted is taking the necessary measures to maintain its competitiveness in improved stock availability and quicker deliveries to meet customer and to ensure profitability. demand. This will assist us greatly in converting bookings into sales over the 2008 period. We have also carried out structural changes within the organisation to forge closer ties and enhance cooperation between the Sales and After Sales divisions. We have also trimmed the EON sales network by a further three outlets and now have 40 sales branches in total. 33

EUROMOBIL SDN BHD (Euromobil) The Board has decided not to continue with the Hyundai dealership For the period under review, Euromobil, our luxury car-retailing arm, with effect 30 June 2008 due to intense competition in this garnered revenue of RM60.99 million. Despite a highly competitive market segment. market environment, Euromobil successfully launched two new and highly anticipated models – the stylish new Audi TT sports coupe and the Q7 SUV; both of which were well received with EON AUTO MART SDN BHD (EON Auto Mart) encouraging orders. EON Auto Mart retails and services the Mitsubishi range of vehicles in Malaysia throughout its 14 branches. For the financial year, Euromobil is reformulating its business plan to affirm the Audi marque the company turned in revenue of RM329.57 million. In mid- as a premium brand. Steps are being taken to achieve this by expanding August 2007, Mitsubishi introduced its latest saloon car, the Lancer the sales and after sales network. 2008 will be an exciting year for the 2.0GT and in October 2007, re-introduced its MPV, the Grandis. Audi brand with the introduction of the acclaimed new Audi A4 which Market response towards both the Lancer 2.0GT and Grandis has is expected to become the volume seller. The A4 was introduced in been very encouraging. June 2008 with considerable fanfare.

AUTOMOTIVE CONVERSION ENGINEERING SDN BHD (ACE) EONMOBIL SDN BHD (EONMOBIL) ACE is principally involved in the conversion and modification of EONMOBIL turned in total revenue of RM22.13 million for the financial Proton vehicles into Executive and Limousine models. ACE posted period. In 2007, EONMOBIL secured a Sales and Service Dealership revenue of RM8.75 million for the period under review and a PBT from Suzuki Malaysia Automobile Sdn Bhd and opened its first sales of RM2.38 million. showroom in Kepong. Demand for the locally assembled Suzuki Swift 1.5L model was satisfactory and contributed to the company’s overall performance.