INVESTOR UPDATE 31 DECEMBER 2014 2014 TH QUARTERLY REPORT From The Desk Of The Chairman Dear Shareholders, We are pleased to announce that PPB Group’s revenue rose by 12% to RM3.7 billion for year 2014 mainly driven by growth in most of the Group’s core segments. PPB Group posted an unaudited proft before tax of RM1.03 billion for year 2014, down 3% from the year before. The lower proft was due to reduced proft contribution from Wilmar International Limited, lower income from investment in equities and losses in the packaging business reported within “Other Operations”. Most of the Group’s core segments achieved better results for year 2014. Proft for the year was RM938.9 million and earnings per share stood at 77.33 sen. The Board of Directors has recommended a fnal single tier dividend of 16 sen per share for the fnancial year ended 31 December 2014 subject to shareholders’ approval at the forthcoming Annual General Meeting. The fnal single tier dividend is payable on 29 May 2015 and together with the interim single tier dividend of 7 sen per share, the total dividend for fnancial year 2014 would be 23 sen per share compared with 25 sen paid in respect of year 2013. 2 From The Desk Of The Chairman (Cont’d) GOING FORWARD CSR ACTIVITIES The performance of the Group’s four, feed and food-related PPB Group through its 80%-subsidiary, FFM Berhad, was prompt businesses should be sustainable, based on their enlarged to reach out to the food victims who were badly hit by the distribution channels and market share. The cinema business massive foods that occurred in late-December 2014. FFM staff looks forward to the strong line-up of flm releases in 2015 made two rounds of distribution to the food victims. The frst which should drive higher admissions to the existing cinemas round was the distribution of ready-to-eat items at the relief as well as new cinemas to be opened in the coming year. centres. After the foods receded and the victims started The property division is expected to perform satisfactorily returning home, FFM staff made door-to-door deliveries in the despite subdued sentiments in the local property market. The second round of distribution comprising cleaning products, environmental engineering segment should achieve higher mosquito spray as well as heavy duty garbage bags. A total of revenue in the year as the contracts in hand progress to main 6,000 families received food and household items packed by construction phases. FFM staff valued at RM383,000. Apart from the contribution from PPB Group, the staff of FFM group voluntarily started a Domestic demand will remain as the main driving factor for donation drive and collected a total sum of RM72,000 to help the Group’s core businesses while the overall consolidated the food victims as well as FFM staff who were affected by fnancial results in 2015 will continue to be substantially the foods. supported by Wilmar’s business performance. PPB Group organised several CSR activities during the quarter HAPPENINGS and amongst them was the “Let the Blind Read” project whereby PPB assisted the Malaysian Association for the Blind Golden Screen Cinemas Sdn Bhd (GSC), a wholly-owned to produce Braille storybooks for primary schools. PPB also subsidiary of PPB Group, opened its 10-screen cinema at Quill sponsored a set of 44 Braille storybooks each to 26 primary City Mall, Kuala Lumpur on 18 December 2014. The 1,751 schools for the blind in the country. seater cinema is equipped with Dolby Atmos cinema audio technology and features a THX-certifed auditorium. This Not forgetting the underprivileged during the festival new cinema also features a new innovation in cinema design celebrations, PPB staff celebrated Deepavali with 34 children technology with the “projection room-less” concept which at the Siddharthan Care Centre and gave them each new uses a retractable projector mounted to the ceiling of one of clothing and goodie bags, and also contributed FFM products the auditoriums. to the Centre. A movie outing was organised for 150 members from The Touch Community which reaches out to poor families FFM Marketing Sdn Bhd (FFMM), an 80% indirect subsidiary and senior citizens. PPB also organised a “Toy Bank - A Gift of of PPB, started the distributorship of two new agencies, Love” at Cheras LeisureMall (CLM), and successfully collected Goodmaid and Gem-Brite in November 2014. Goodmaid is 2,000 gifts for underprivileged children from 12 homes. reputed for its high quality household cleaning products, bleaching agents and personal care products. Gem-Brite FFMM participated in the Second Fundraising Food and Fun is a range of dishwashing liquid manufactured by Products Fair organised by United Voice, an advocate for those with Manufacturing Sdn Bhd, a 55% indirect subsidiary of PPB. learning disabilities and raised some funds through the sale of frozen food products manufactured and marketed by FFM PPB conducted a full day in-house directors’ training session Group at the fair. on 2 October 2014 which was attended by over a hundred directors, senior managers and offcers of PPB Group A “Women Street Crime Awareness” campaign was held in CLM companies and affliates. The content comprised subjects on 12 October 2014 with the assistance of the Road Safety which are topical and relevant to the Group, and aims to keep Marshal Club Malaysia, to educate women on their personal directors and management abreast with market and regulatory safety and empower them to protect themselves. developments, as well as other subjects of interest. PPB staff and family members went for a Movie Day on GSC jointly organised the European Union Film Festival for 29 November 2014 to watch a screening of “Penguins of the 15th consecutive year together with the Delegation of Madagascar” at GSC Pavilion, Kuala Lumpur followed by a European Union to Malaysia and the Embassy of Italy. The buffet lunch at Glitters Café. festival was offcially launched in the Klang Valley on 29 October 2014 at GSC KL Pavilion, and was extended for the PPB also encouraged its staff to participate in the ParkCity very frst time to GSC CityOne Megamall in Kuching. Run 2014 and the Standard Chartered KL Marathon Run 2014. Datuk Oh Siew Nam • Chairman 10 March 2015 3 INVESTOR UPDATE Happenings From L-R: Mr. Irving Chee (GSC General Manager), Mr. Ng Chee Kheong (COO, Quill Group), Dato’ Dr. Jennifer Low (Group Managing Director, Quill Group), Ms. Koh Mei Lee (GSC CEO) and Dato’ Michael Ong (Group Executive Director, Quill Group) at the launch of GSC Quill City Mall. Signing on the movie poster at the launch of GSC Quill City Mall Opening of GSC QUILL CITY MALL, KUALA LUMPUR 4 26"35&3-:3&1035t%&$&.#&3 Happenings (Cont’d) Signing on the movie poster at the launch of GSC Quill City Mall GSC Quill City Mall opened for business on 18 December 2014 with 10 digital screens and a total of 1,751 seats including allocated spaces for 20 wheelchair users. Equipped with the Dolby Atmos cinema audio technology, GSC Quill City Mall also features a THX-certifed auditorium which offers an immersive experience with multi-dimensional sound technology. Built at a total cost of RM21.5 million, GSC Quill City Mall also features a new innovation in cinema design technology with the “projection room-less” concept which uses a retractable projector mounted to the ceiling of one of the auditoriums. 5 INVESTOR UPDATE Happenings (Cont’d) FFM MARKETING APPOINTED DISTRIBUTOR of Goodmaid and Gem-Brite 6 QUARTERLY REPORT • 31 DECEMBER 2014 Happenings (Cont’d) FFM Marketing Sdn Bhd (FFMM), a 80% indirect subsidiary of Goodmaid’s wide-range of products are manufactured to meet PPB, started the distributorship of two (2) new agencies, international standards and are currently exported to more Goodmaid and Gem-Brite, in November 2014. than 65 countries worldwide. As an ISO 9001 QMS certified manufacturer, GCC also provides contract packaging service The Goodmaid distributorship also includes a service to other companies for distribution under their own brands. provider arrangement where FFMM provides warehousing, delivery and other services to selected retail segment Under the new distributorship and service provider agreement, managed directly by Goodmaid’s sales team in West FFMM is the sole distributor for the lower trade segment in Malaysia. both West and East Malaysia, penetrating into hypermarkets and independent supermarkets and other traditional trade The Goodmaid products are manufactured by Goodmaid channels including provision, sundry and convenience stores. Chemicals Corporation Sdn Bhd (GCC) which is owned by Goodmaid’s direct sales team is responsible for the marketing Saraya Co Ltd, a Japanese company headquartered in Osaka and distribution in selected modern trade segments in West which specialises in sanitation, environmental solution, Malaysia. personal and healthcare products. Gem-Brite is a range of dishwashing liquid manufactured by GCC manufactures a line of high quality products marketed Products Manufacturing Sdn Bhd, a 55% indirect subsidiary under the following brands :- of PPB. Gem-Brite was recently launched in the market and is available in Aquamarine, Citrine and Peridot varieties in i. “Goodmaid” – a range of household cleaning products 1000-ml pack size. It is sold in local supermarkets and large ii. “Goodmaid Bio” – a range of environmentally-friendly provision stores. household cleaning products iii. “Cocorex Bleach” – a range of household bleaching agents iv. “Goodmaid Care” – a range of hygiene and personal care products 7 INVESTOR UPDATE Happenings (Cont’d) DIRECTORS’ TRAINING PPB conducted its annual in-house directors’ training programme on 2 October 2014 which was attended by over a hundred participants comprising directors, In 2014 senior managers and offcers of PPB group companies and affliates.