Wsa Interview

8/3/2019 Wsa Interview

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Our Mission

GROUP CORPORATE MISSION

OUR CORPORATE MISSION

WSA is a technologically driven organization committed to contribute, serve and care for our society

and environment.

OUR COMMITMENTQuality and customer satisfaction are the most important drivers of our business, we are committed to

delivering operational excellence and fulfill our commitments to the many constituencies we serve thus

fulfilling our customers' needs and expectations without compromising our professional integrity.

All of our long-term strategies and short-term actions will be molded by a set of core values that areshared by everyone within the Group.Guided by relentless drive for excellence, we will constantly

strive to implement the critical initiatives required to achieve our vision through innovation, costeffectiveness and aesthetically engineered products.

WSA - GROWING FROM STRENGTH TO STRENGTH REFLECTING UNITY IN

DIVERSITY

The Group was established in 1995. The nucleus of the Group was founded by three key players: Wan,

Sinnadurai and Antonio. They contributed their initials and laid the foundation of what WSA is today.

OUR BUSINESS

In the early years, WSA main business was in trading and consultancy.

The trading business was established based

on the strengths of the founding members. Antonio introduced the products producedbyhis family's company, King Wai Pty. Ltd. Singapore. Wan & Sinnadurai used their local

contacts to promote and market the products in Malaysia.

The trading activity helped the newly established company to maintain a steady cash-

flow and provide the foundation to plan and explore other business opportunities.

During their initial stage, the Group was also involved in providing some advisory services. The mostsignificant work undertaken by the Group, in collaboration with Tropbio Forest, was to draw up the

sustainable Forest Management Plan and Memorandum of Information covering an area of about

250,000ha with a lease period of 99 years for the State of Sabah, Malaysia.

A breakthrough came when the Group was appointed by the second national car manufacturer, Perodua

in 1999 to manufacture and supply the headliners and steering column. Two new companies wereformed to undertake the projects namely the WSA Capital Corporation (WCC) and WSA Engineering

(WSAE).


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OUR STRATEGIC BUSINESS PARTNERS

With the business activities growing at rapid rates, from a small concern into a medium-sized

operation, some of the companies were restructured to include new strategic business partners toprovide capital, widen networks, and ensure better management and controls. MPEM Sdn Bhd

(MPEM) and MBM Resources Berhad (MBM) became the shareholders of the Group.

MPEM belongs to the family of the late Raja Tun Mohar bin Raja Badiozaman, while MBM is acompany listed on the main Board of Kuala Lumpur Stock Exchange.

The late Tun was the former Special Economic Advisor to the Prime Minister and also the Chairman

of several large and successful institutions and corporations in Malaysia

including Petronas (National Petroleum Corporation of Malaysia).

In 2002, the Group bought Carpets International Malaysia Manufacturing Sdn. Bhd. (CIM) and its

related companies. However, there was a need to extend the time to bring about the needed turnaround

for CIM, hence MBM agreed to increase its investment and WCC became its subsidiary company withmore than 70% ownership in the WCC.

In mid-2010 MBM decided to divest all its interest in WCC to me, being the

founder and management of WCC. To complete the buy over, new Private Equityinvestors (PE) and some senior staff were invited to take up some shares in WCC,

However, I remain the majority shareholder and have been appointed as the

Chairman / Chief Executive Officer of the Group.

OUR AUTOMOTIVE BUSINESS

To keep pace with the rapid development of the automotive industry, the Group has strong linkageswith renowned global companies as technical partners (Figure II).

They are Nam Yang Industrial Co Ltd, PHC-Valeo Co Ltd, One Auto Korea, R+S Technik GmbH and

EDAG Holdings Sdn Bhd of Germany, I.N.C Corporation Pty Ltd and Davies Craig Pty Ltd ofAustralia and raw material suppliers from Japan, Italy, China, India, Korea, Thailand, USA, Germany,

Sweden and Belgium.

These strategic alliances supported by in-house research & development programs, have enabled the

Group to design, manufacture and supply a wide range of car interior trims and Noise Vibration and

Harshness (NVH) products, steering column assembly (until 2007), Direct Connection DamperFlywheel (DDF) and Damper Flywheel (DF) for continuous variable transmission (CVT).

In 2007, WCC joined three other companies, Thai Summit Group, DelloydVentures Berhad and W&A Ventures Sdn Bhd to form Autoparts NetworksAlliances Sdn Bhd, a consolidated vendors group specializing in automotive

interior trims and NVH Products.

In 2009, WCC took another bold but strategic move by acquiring the assets and business of Johnson

Controls Automotive Interiors (JCAI), a subsidiary of a global company, Johnson Controls of USA.The latter is involved in the design, manufacturing and supply of door trims, headliners and interior

systems for automobiles. This acquisition is very strategic as it further deepens the Group's


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involvement in car interior trims and NVH, an area with wide clientele based including Toyota

Malaysia, Isuzu, Hyundai and Volvo.

The drive to be a fully integrated automotive trims and NVH products supplier shall continue. Duringthe third quarter of 2010, the Group signed two Memorandum of Understanding (MOU); one was with

an Australian company to carry out the technical and financial feasibility for WSA to manufacture the

former patented product, Deci-Tex. The product will be used as one of the primary raw material in theproduction of interior trims and NVH products. The other MOU was with a local company that

specializes in plastic injection, whereby their facilities and expertise can be integrated with WSA's

current thermoforming processes.

The Group has recently signed the Technical and Commercial Agreement withSanwa Kogyo Co Ltd of Japan to further strengthened its technical know-how in

the PUGF application in interior trims. Sanwa Kogyo is a Tier-One specialist indesign, development, supply and manufacturing of headlining and other interior

trims to most of the Japanese OEMs since 1960s; primarily Honda, Nissan and

Toyota.

The Group's involvement in the automotive aftermarket business or commonly known as REM startedin 2004. This is to capitalize on our local and global connections with the automotive parts

manufacturers. This sub-sector offers significant growth potential in the Light Weight Vehicle (LMV)

segment.

To support the development of our automotive aftermarket replacement parts (REM) and servicescenters we have trading partners and associates in most countries especially Korea, Japan and China.

This sector is expected to grow significantly in years to come where plans have been put in place towiden the scopes and depths of Automotive Aftermarket Business.

OUR BUSINESS DIVERSIFICATION

The Group has perfomed beyond expectations during the past 10 years with increasing number of

products and services added to our portfolios. Additionally, we take pride in the growing number ofnew clients and partners. This reflects the market's confidence in WSA's capabilities.

We are confident that we will continue to grow between 20 to 30 percent per year of our current sales

turn over. This is achievable by continuously strengthening, deepening and widening our product range,clients and services

The Group's ambition is to grow at a faster rate over the next 10 years (2010-2020), and achieve anannual sales turnover of more than RM 1.0 billion by 2020. To meet this target, the Group needs to

accelerate the growth of its current non-auto business as well as evaluate other business portfolios that

have potential for high growth, high return, less cyclical and sustainably compatible with the neweconomic models.


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The diversification business plan shall be pursued through organic growth, merger and acquisition

and/or joint ventures.

In this regard, Milliken of USA's (a global renowned modular carpet tiles manufacturer of over 145years) appointment of CIM as a distributor in Malaysia in early 2010 was a welcoming start to further

strengthen CIM business.

By 2020, WCC expects the non-auto businesses to contribute to more than 60 percent of its annual

sale turnover and profit. It is a very ambitious growth target, but success starts with a dream.

MOVING FORWARD

The journey of WSA and the business challenges are indeed humbling experiences. As theChairman/CEO, I would like to thank MBM personally, in particular its Chairman Dato' Abdul Rahim

Halim for his past support and confidence in the management without which, WSA will not be where it

is today.

To the new shareholders and Board members, I wish them a very warm welcome into the Group.

Together, I believe we can move forward positively in years ahead. The Group (WCC and WSA

Industry) is set to record another important historical milestone of surpassing RM100 million saleturnover this year, 2010 (Figure III).

The next ten years shall be equally challenging and exciting as the Group embarks into systematic andwell thought plans for vertical and horizontal diversification from the current business portfolios.

Besides implementing the business expansion plan, the Group also places high priority in continuous

Human Resource Trainning and Development programs. The Growth Plans requires capable, dedicated,well trained, honest and loyal work force at all levels. The aim of our HR development and

transformation is to identify the future leaders to lead the Group to greater heights.I am also proud to announce that come next year on July 10, 2011 we shall be moving into our new

Head Office that we can call home (Figure IV).

Finally, our objective is to establish WSA as one of the best local and regional player. The challenges

are daunting, no doubt, but it will be a privilege journey for us to harness the opportunities as we grow

and compete to position ourselves in the global market.

The Shareholders, Board of Directors and staff of the Group are very excited and

encouraged by this new development and look forward to playing more significant

roles in helping Malaysia achieve a developed nation status by 2020.

From the desk of

Chairman / Chief Executive Officer


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SETTING THE PACE OF THE FUTURE

INVESTMENT TO ENHANCED GROWTH

AND CAPABILITIES

The business journey of WSA has never been without challenges and tribulations. With adherence tothe Group's philosophy of serving and caring with dedication and technology, has helped us to progressand overcome many of these challenges.

The Group will continue to focus on the right products and services. With the pool of talents andcontinuous human resource training and development, we are confident that the Group is now ready to

move to the next level of development and grow at a faster rate.

As we expand our business portfolios, so too our global linkages. We will capitalise on these positive

developments to harness the best business models of the East and West.

Moving forward, the Group will consider future business expansion either through co-branding, mergerand acquisition or joint ventures. Our road map for growth and value creation will include deepening

the strategic alliances with our existing as well as new business partners.

Over the years, WSA has diversified its products and services with a growing lists of partners and

clients. We anticipate the business to continue growing by more than 25% from our current core

businesses. While this is an achievable target , the Group is targeting for an accelerated growth over thenext ten years (2011-2020) and hopes to achieve an annual sale turnover of RM1.0 billion by end of

2020.In view of this, it is critical for the Group to develop an aggressive and sustainable growth plans.

Under the Group's horizontal diversification plan, we are evaluating the non-auto business and new

business portfolios with good growth potential, high return, less cyclical to ensure its compatibilitywith the new economic models.

Thus, the developments at the Group level are clear evidences and testimony that we are "walking the

talk" with continued creativity, credibility, responsibility and honesty.

Documents

Wsa Interview