CHAIRMAN’S STATEMENT Cont’d CHAIRMAN'S STATEMENT Dear Stakeholders, On behalf of the Board of Directors (the “Board”) of Press Metal Aluminium Holdings Berhad (the “Company” or “Press Metal”), I am pleased to present to you the annual report of the Company for the financial year ended 31 December 2022 (“FY2022” or the “year under review”). In 2022, the world began to emerge from the shadow of the pandemic and lockdowns with a sense of hope and renewal. Nevertheless, the fragility of macroeconomic variables continued with supply chain disruptions, inflation and monetary tightening. The ongoing tensions between Russia and Ukraine also significantly impacted global economies. Addressing this, governments worldwide have effected stimulus packages to improve the economic situation and revive activities as businesses continue to face headwinds. As we navigate this period of external volatilities, Press Metal is steadfast in our focus to deliver value to our stakeholders. We remain committed and energised, leveraging on our core strengths and the increased smelting capacity to drive scale and growth. I believe our success is primarily due to our nurture of teamwork and collaboration, bringing together diverse skills to achieve our strategic objectives. REVIEW OF FINANCIAL PERFORMANCE I am pleased to report that Press Metal has achieved a new record performance in FY2022, despite being faced with elevated raw material prices and abnormally high freight costs. We registered revenue of RM15.68 billion and profit after tax and minority interest of RM1.41 billion, an increase of 42.6% and 40.4%, respectively, compared to the preceding year. The year was marked by rising interest rates with the Federal Reserve’s aggressive tightening policies. We stayed proactive and managed to reduce our financial expenses and will remain vigilant in maintaining this financial discipline. We also completed a private placement exercise in April 2022, raising RM970.6 million for additional working capital, expansion of our extrusion operations and repayment of bank borrowings. With this and our healthy operational cashflow, our gearing ratio reduced to 0.56 times as of 31 December 2022 from 1.20 times the year before. In today’s challenging business environment, a strong balance sheet is essential to allow us to stay proactive to capture opportunities and manage any challenges. PRESS METAL ALUMINIUM HOLDINGS BERHAD 9
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