The Board is recommending a final dividend of 10 sen per share

Mazda
The turnaround in profitability of the Mazda franchise continued
in 2003. The first half of the year saw lower sales with the
“runout” of the E series vans, 323 models and the old “Fighter”.
The second half witnessed the launch of the new facelifted
“Fighter”, the 2.0L Premacy MPV and the RX8, all of which were
displayed at the Kuala Lumpur Motor Show. Despite the rising
Yen, the financial performance was encouraging. The focus in
2004 is to strengthen the dealer network, from both sales and
after sales perspective, attract new products to widen the
portfolio and develop the parts wholesale operation. A renewed
commitment from Mazda Motor Corporation to the Malaysian
market, coupled with some excellent product developments both
for local assembly and importation, provide good prospects for
2004 and beyond.
Peugeot
The first full year for the Group’s Peugeot franchise was
challenging with the rising Euro and instability in the used car
sector affecting trading conditions and margins. However,
the network development plans were achieved and the sales
performance for the year placed Peugeot number 3 behind
Mercedes-Benz and BMW in the continental car segment.
During the year there were launches of the 307 SW (1.6L) an MPV,
the 807 (2.0L), also an MPV and the Partner (1.4L). Sales of the
206CC were strong with very little competition in its class.
With the impending launch of the 307CC in 2004, the model line
up is impressive and will compete very strongly in its segments.
The replacement of the successful 406 (2.0L) during 2004 by the
new 407 will add further volume to the franchise.
Managing Director’s Review
The focus in 2004 will be to strengthen the dealer network to the
optimum size, put in place the full range of product offerings at
competitive prices, evaluate an entry into the CKD business for
the franchise and support the brand development strategy.
Assembly
The Group’s assembly operations under its 100% subsidiary
company, Asia Automobile Industries, continued under contract
to DCM. The company assembles the C-Class and S-Class
passenger cars and the new bus and truck product range.
A rationalisation programme aimed at reducing operating cost
and improving efficiency was adopted during the year and the
company reported a better profit after tax. With the ongoing
support from DCM, the prospects for 2004 look promising with a
healthy demand from the Principal and a lower and more tightly
managed operating cost.
Cycle & Carriage (Malaysia)
In November 2003, the Company announced that subject to
Foreign Investment Committee’s approval, we had agreed to
purchase the balance 70% shareholding in Cycle & Carriage
(Malaysia) Sdn Bhd (“CCM”), our multi-franchised retail
dealership associate, from Jardine Cycle & Carriage Limited.
CCM offers a good opportunity for growth in the retail sector and
dovetails with the Group’s strategy to build on its retail expertise
in Malaysia. The acquisition was completed on 23 March 2004
and following completion, CCM becomes a wholly owned
subsidiary of the Group.
24
Cycle & Carriage Bintang Berhad
Annual Report 2003