Annual Report 2014 - 15 |
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CARSON CUMBERBATCH PLC CARSON CUMBERBATCH Pursuinggrowth | - 15 Annual Report 2014 CARSON CUMBERBATCH PLC Annual Report 2014 - 15 Contents Sector Overview 4 ∕ Corporate Information 10 ∕ Financial Highlights 11∕ Chairman’s Statement 12 ∕ Profiles of the Directors14 ∕ Group Structure 18 ∕ Sector Review 20 / Graphical Financial Review 44 ∕ Group Financial Review 46 ∕ Sustainability Report 52 ∕ Value Added Statement 76 ∕ Management Teams 78 ∕ Group Directorate 80 ∕ Risk Management 84 ∕ Information to Shareholders & Investors 89 Pursuinggrowth In line with our unremitting pursuit of long term growth Carson Cumberbatch Group continued to consolidate the local and regional operations, adding on Capacity, acquiring brands and establishing client network during the year under review. Reinforcing our position as a well established regional holding company, we will continue to explore investment and partnership opportunities across South and South East Asia, growing our presence, expanding our reach and delivering increasing value to every stakeholder we serve. Carson Cumberbatch PLC was founded in 1857 and has grown over the years to become the highly reputed diversified conglomerate it is today. Our portfolio of high value business sectors is virtually unmatched as we continue to expand our interests across the south east asian region and beyond. Pursuinggrowth 4 Annual Report 2014-15 Carson Cumberbatch PLC Sector Overview Beverage The beverage sector of the Group has roots under license from Carlsberg International Denmark, since going back to over 100 years in the brewing 1993. With the recent acquisition of Millers Brewery, the product portfolio of Lion Brewery has expanded further, to include a industry of Sri Lanka, where sector holding number of Millers brands, such as “Three Coins Lager”, “Sando company, Ceylon Beverage Holdings PLC – Dark” and “Sando Stout”. formerly known as ‘The Ceylon Brewery’- , The company recently acquired distribution rights for the legendary was the country’s pioneer brewer. Mexican beer brand “Corona” and is also the licensed distributor for Diageo brands in Sri Lanka. It has nurtured its brand ‘Lion’ through times of traditional brewing in the picturesque and cool climes of Nuwara Eliya, to its modern In addition to Lion Brewery (Ceylon) PLC, Ceylon Beverage high tech state-of-the-art plant owned by subsidiary and operating Holdings has also invested in a chain of pubs (“Machan” & “O!”) and company, Lion Brewery (Ceylon) PLC in Biyagama. retail outlets, under subsidiary companies Retail Spaces and Pubs N Places, with the aim of providing consumers with a pleasant The flagship brand “Lion” is also exported to several countries ambience and environment to purchase the alcoholic beverages including USA, Canada, Australia, UK, Japan, and the Maldives they desire. where the company is the market leader. In addition to its own brands, Lion Brewery (Ceylon) PLC also For more info: produces the internationally renowned global brand “Carlsberg”, Page 28 Carson Cumberbatch PLC Annual Report 2014-15 5 Oil Palm Plantations Majority of our Oil Palm Plantations are Goodhope Asia Holdings Ltd was incorporated in Singapore in situated in Indonesia, in the Kalimantan 2008 as the holding company consolidating all investments by the Carsons Group in the Oil Palm Plantations and Oils & fats and in Irian Jaya regions, whilst our entry business segments. into plantations dates back to over 100 As the planted extents grew, we have also set up required years with Rubber plantations in Malaysia. processing facilities to produce Crude Palm Oil (CPO), and We entered Indonesia in 1996 with the developed infrastructure within the operating locations. Our setting up of PT Agro Indomas, in Central plantations are developed adopting stringent sustainable Kalimantan with a land bank of 12,000 development criterion, Goodhope is a member of the RSPO (Roundtable on Sustainable Palm Oil) and we produce RSPO hectares. certified palm oil at some of palm oil mills. Our second plantations in Indonesia, PT Agro Bukit commenced development in 2005 and since then we have grown to a total extent of over 80,000 hectares planted in Indonesia and with a total land bank of over 150,000 hectares. We produced over 1 million MT of FFB (Fresh Fruit Bunches) and 230,000 MT of CPO (Crude Palm Oil) during the financial For more info: year 2014/15. Page 20 6 Annual Report 2014-15 Carson Cumberbatch PLC Sector Overview Oils & Fats Goodhope entered the downstream edible The downstream businesses will facilitate us to integrate with the upstream plantations in Indonesia over the medium to long term, Oils & Fats segment, with the acquisition facilitating towards achieving our vision of becoming an integrated of a specialty Oils & Fats manufacturing player within the Palm oil industry value chain. operation in Malaysia and a palm oil refinery in India. Our total refining and specialty fats manufacturing capacity is over 300,000 MT. Our downstream operations supplies specialty fats to the confectionery, ice cream and bakery business, with the Malaysian plant exporting specialty fats manufactured out of palm kernel oil, palm oil and coconut oil to over 55 countries. Our customers range from multi nationals to regional and national players within these industries commanding significant market shares in their respective businesses. For more info: Page 24 Carson Cumberbatch PLC Annual Report 2014-15 7 Portfolio & Asset Management The Portfolio & Asset Management segment of unit trust management and private equity management. the Carson’s group is primarily focussed on capital The Group also has presence in the Unit Trust segment, via market activities for management of portfolios, Guardian Acuity Asset Management, a joint venture formed with across multiple asset classes. Ceylon Guardian Acuity Partners. Guardian Acuity Asset Management primarily Investment Trust PLC, which is positioned as the has three unit trust funds in offer; Guardian Acuity Fixed Income Funds, Guardian Acuity Equity Fund and Guardian Acuity Money sector holding company, holds the privilege of Market Gilt Fund. being the largest listed investment company on the Colombo Stock Exchange to date. The sector also offers the Sri Lanka Fund, (formerly known as the Regent Sri Lanka Fund), a dedicated USD denominated country fund incorporated with the objective of facilitating investors The Guardian group, with its specialised subsidiaries on different residing overseas to gain exposure to the local market. asset classes, serves as an investment house which offers investors variety in terms of exposure to asset classes based on their As at 31st March 2015, the total Assets under Management of preference and risk appetite. To this end, the group has two listed the Guardian Group amounted to Rs.34.0 Bn, of which, the subsidiary companies; Ceylon Investments PLC (CINV) and discretionary portion of Guardian’s proprietary portfolio was valued Guardian Capital Partners PLC which act as investment vehicles for at Rs.13.5 Bn and external client portfolios together with Unit listed and private equity respectively. Trust’s stood at a cumulative Rs.6.6 Bn. Ceylon Guardian’s own proprietary portfolio forms the anchor For more info: funds under management, further to which, the group has diversified Page 32 its business reach on three fronts –client portfolio management, 8 Annual Report 2014-15 Carson Cumberbatch PLC Sector Overview Real Estate The Real Estate business of Carson for rapid development, amidst many landmark projects Cumberbatch PLC comprising of sector envisaged to come up, some of which have already broken ground. The total property portfolio of the sector was valued at holding company, Equity One PLC and its Rs.2.7 Bn as at 31st March 2015. subsidiaries, Equity Two PLC and Equity Further to the location factor, the sector also boasts of a diverse Three pvt Ltd is primarily engaged in the tenant profile featuring banks, multinationals and other rental of office and warehouse spaces. corporates. The group has maintained healthy tenant retention levels over the past few years, which speaks of the high level of The sector owns and manages a total built up area of service provided. approximately 192,000 sq. ft. spread across a land bank of 2.94 acres, all positioned in the prime areas of Colombo, bearing significant value potential. For instance, the sector’s office properties at Janadhipathi Mawatha are located in the commercial hub of Sri Lanka, facing the Central Bank, and neighbouring State and Commercial banks, the World Trade Centre, star class hotels and the Port. The group’s warehouse complex at Vauxhall Lane is also situated in an area earmarked For more info: Page 40 Carson Cumberbatch PLC Annual Report 2014-15 9 Leisure The Leisure sector of the Carsons Group The Giritale Hotel is a 40 key resort located in Giritale, constitutes of two hotel properties; The Polonnaruwa, one of the ancient Kingdoms of Sri Lanka rich in culture and heritage. The hotel is situated overlooking the Pegasus Reef Hotel and Giritale Hotel, the Giritale Tank (reservoir) and close to Minneriya sanctuary, and latter being fully owned by the former. is a well sought after eco-tourist destination. The Pegasus Reef Hotel, which entered the hospitality industry of Sri Lanka during the early 1970’s as one of the first premier star class resort establishments in the country, is a luxurious tropical getaway, located in Hendala, Wattala, overlooking the breathtaking Indian Ocean. Today, it is a 140 key venue, equipped with modern banquet halls capable of hosting both banquets and MICE events alike. As such, currently the hotel is well patronized by both local and foreign clientele. In efforts to provide a unique guest experience and elevate the overall standards of the hotel, an exclusive sea food restaurant has been planned, which is expected to open in August 2015. For more info: Page 36 10 Annual Report 2014-15 Carson Cumberbatch PLC Corporate Information Name of the Company Bankers Carson Cumberbatch PLC Standard Chartered Bank Bank of Ceylon Company Registration No.