Sapura Industrial Berhad Business Report FY ended Jan. 2018

Financial Overview

(in million MYR)

	FY ended Jan. 31, 2018	FY ended Jan. 31, 2017	Rate of Change (%)	Factors
Net Sales	211.7	223.2	(5.2)	1)
Operating Profit	5.3	10.0	(47.0)	-

Factors
1) Net Sales
-The Company’s sales in the fiscal year ended January 31, 2018 decreased by 5.2% to MYR 211.7 million. The decrease in sales was due to a 0.6% decrease in new vehicle sales in Malaysia.

Contracts

-During the fiscal year ended January 31, 2018, the Company supplied components for a number of new vehicle models launched during that time, including the Perodua Myvi, Honda CR-V and Mazda CX-5.

Awards

-In the fiscal year ended January 31, 2018, the Company received the 2017 Proton Suppliers Award.

R&D Facilities

-The Company has a research and development facility located in Bandar Baru Bangi, Selangor, Malaysia.

R&D Activities

-In the fiscal year ended January 31, 2018, the Company’s research and development division developed 61 new parts. Its Hot & Cold Forming division is also developing hollow stabilizer bars, which is a more cost-effective and energy-effective component for an automotive suspension system.

Technological Alliance

(As of Jan. 31, 2018)

Company	Location	Product/Technology
ADVICS	Japan	Brake systems
Marubeni Automotive Corporation	Japan	Knuckles and brake drums
Erae Automotive Systems	Korea	Brake systems
World Industries Ace	Korea	CV joints and front axles
ACT	Korea	Design and testing house
GKN Sinter Metals	Germany	Sintered forging
Ina Bearing	Germany	Roller bearing
Mahle	Germany	Forged cracking

-The Company is collaborating with the Universiti Malaysia Pahang (UMP) to research the feasibility of commercially producing components for hybrid and electric vehicles.

Capital Expenditure

(in million MYR)

	FY ended Jan. 31, 2018	FY ended Jan. 31, 2017	FY ended Jan. 31, 2016
Overall	19.5	8.3	12.4

-The Company’s capital expenditure in the fiscal year ending January 31, 2018 was primarily in preparation for orders from Perodua, Proton, Honda and Mazda.