Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2022 19 The free cash flow increased from RM56.0 million to RM90.2 million in FY2022 mainly due to higher cash flow generated from operating activities and lower capital expenditure, a decrease of RM30.2 million, compared to the preceding year. The net cash inflow from operating activities for FY2022 increased to RM142.9 million. The net cash outflow for financing activities of RM50.6 million in FY2022 was mainly due to higher dividend payment, an increase of 22%, to reward our shareholders. Net cash used for investing activities decreased from RM86.2 million in the preceding year to RM58.7 million in FY2022 due to lower capital expenditure. The Group cash and cash equivalents increased from RM302.4 million to RM327.4 million as at the end of FY2022. FINANCIAL POSITION The Group’s shareholders’ fund improved from RM500.9 million as at 31 December 2021 to RM548.5 million as at 31 December 2022, an increase of 10%. The Group’s total assets as at 31 December 2022 was RM805.8 million, an increase of RM87.2 million or 12% from RM718.6 million a year ago. As at 31 December 2022, the Group’s property, plant and equipment was RM229.3 million, an increase of RM31.5 million. The cash and bank balances increased by RM67.7 million to RM317.4 million as at 31 December 2022. The Group’s liabilities of RM217.9 million as at 31 December 2022 were higher by RM34.3 million or 19% compared to last year. The increase in lease liabilities was due to the expansion of production facility in Kaohsiung, Taiwan and the money market loan was for the working capital of a subsidiary in Singapore. FINANCIAL REVIEW (CONT’D) An analysis of revenue by customer location showed growth in our business particularly in Taiwan, Malaysia and Singapore. Our Taiwan semiconductor business continued to benefit from the higher demand in the semiconductor space. The improvement in the Group’s local business was largely due to pick-up in orders for its maintenance and repair services of mechanical rotating equipment and manpower supply through its various contracts that it has with Petronas Group of Companies. Our engineering division in Singapore also saw an increase in activities partly attributable to the improvement in the oil and gas industry. EARNINGS The Group’s earnings before interest, tax, depreciation and amortisation (“EBITDA”) for FY2022 was RM25.1 million or 15% higher than that achieved in the preceding year mainly due to improved revenue and strict cost management. Against the same period last year, the profit after tax increased by RM20.9 million (18%). The performance would have been better if not for the slight delay in the qualification of our new facility at Kaohsiung City, Taiwan (“Plant 2”). If the Group were to exclude Plant 2 operational cost, the foreign currency exchange and the withholding tax impact from the equation, for a like-for-like comparison, the current year performance would have been 26% better than the preceding year The consolidated net profit attributable to shareholders of the Company for FY2022 increased by RM18.8 million or 18% compared to the preceding year. This increased the basic earnings per share to 7.8 sen from 6.7 sen in the preceding year. CASH FLOWS in RM’000 242,321 277,883 NET CASH 15% 2021 2022 55,971 90,238 FREE CASH FLOW 61% 2021 2022 82,830 52,660 CAPITAL EXPENDITURE 36% 2021 2022 299,439 319,727 WORKING CAPITAL 2021 2022 7%
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