Autov Transformation Journey Through Merging and Acquisition

"AutoV Transformation Journey Through

Merging and Acquisition"

Executive Summary

The establishment of Malaysian national car projects in the 1980s and 1990s has boosted the development of the engineering supporting industries for automotive sector in the country, and this has in turn, further enhanced the attractiveness of the country as a base for global automotive manufacturers. The past decades has also spur establishment of local expertise of Tier-1 vendors supplying parts and materials to OEM automotive manufacturer and assemblers (OEMs). AutoV Corporation Berhad (AutoV Group) is one of them, incorporated on 18th October 1983 and listed on the Main Market or Bursa Securities, principally involved in the manufacturing and assembly of automotive components for automotive industry in Malaysia. Through strategic investment and collaborations with AutoV's business partners and associates, AutoV Group has transformed from a small homegrown automotive components manufacturer into a Tier-1 vendor, providing more complete automotive component for many major local and international automotive manufacturers and assemblers. A Tier-1 vendor is a "preferred" vendor that provides products and services directly to OEM automotive manufacturers and assemblers such as PROTON and PERODUA, due to the recognition and acceptance of its capabilities to deliver products at the desired quality with competitive pricing and differentiated product innovation. AutoV Group has recently completed its merging and acquisition exercise with AIC Corporation Berhad and Jotech Holdings Berhad in its continuous attempt to;

(a) Create a more diversified group;

(b) Strengthening of financial position;

(c) Optimise its operational and administrative synergies and efficiencies;

(d) Create value propositions:-

- Creation of an Integrated Manufacturing System (IMS) Solutions provider; - Strengthening of financial position;

- Cost efficiencies;

- Improved liquidity and market capitalisation;

- Reduce exposure and dependency on any single industry; and