Annual Report 2020

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Annual Report 2020 Pelikan International Corporation Berhad (Registration No.:198001009827(63611-U)) ANNUAL REPORT PELIKAN CARES Two simple words that encapsulate how we do things at Pelikan Group. In 2020, we challenged ourselves to build a new concept and strategic vision for the Pelikan brand, one that reflects on our brand heritage and yet, to be more appealing to a new generation of children, parents and teachers. The Group’s goal was to strengthen our brand heritage and uniqueness with what we are learning about this new generation. As children draw, read, write, paint, create and learn all the time, Pelikan with a brand history of nearly two centuries have been caring for children’s learning development this whole time. We are set to remind people that we truly are a caring brand. This meaningful brand promise is the running theme that connects all our products, events and communication messages together. The message was inspired by our corporate trademark of the Pelican - a bird which has a nurturing and social nature. Living peacefully in large flocks and sharing parenting duties, the Pelican encourages us to develop friendly, caring, and supportive relationships with our families and members of our own communities. This is in line with the Pelikan Group’s core beliefs. Our promise of Care is expressed in diverse ways: Pelikan Cares for Education: We aim to improve the learning process for students, parents and teachers. This is why we are dedicated to help children learn by developing tools such as griffix® - the learn to write system of writing instruments and brushes with ergonomic features that will not only assist children in learning, but also develop their gross motor skills. Pelikan Cares for Craftsmanship: We aim to enhance children’s (and adults’) imaginations through creativity and fun. This is why we invest in product and packaging innovation, and are unwavering in our emphasis on product quality and craftsmanship. Pelikan Cares about Passion: We aim to cultivate a passion amongst our loyal fans and consumers for our high end fine writing instruments. This is why we gather like-minded pen enthusiasts through our online platforms and global hubs event. Pelikan Cares about Sustainability and the Environment: We aim to create products that are safe, great quality, reliable and non-toxic with ergonomic and high performances features that will last for generations. This is why we focus on sustainable processes and environmental friendly materials and are strategically reducing the use of plastic materials in our end to end operations. Pelikan Cares about People: We aim to channel the brand values internally to our Pelikan family and provide the necessary support, training, and skillset development for our employees to grow and perform to their best abilities. This is why we emphasize on their well-being and productivity as caring employees mean caring products. Leveraging on our commitment to Care, the Pelikan Group is set to communicate our redefined brand message and launch the “Pelikan Cares” brand campaign with a series of new communications concept which includes a refreshed "Back to School" campaign, a new product packaging and point of sales design update, new social media campaigns, and a new corporate identity branding. With this brand promise, the Group hopes to live up to our distinctive and unique position as a “caring” brand and Company in the lives and hearts of our stakeholders. VISION To be a successful, profitable and brand focused company operating worldwide. We create products desired and loved by our consumers. We are a culturally diverse international family of talented and motivated people who share one vision and strive towards the same goals. MISSION Our trusted brands are daily companions. We are an internationally operating company with German roots. With passion and expertise, we create products and solutions that fulfil consumers needs. We are commited to create value for our shareholders and customers. OUR GUIDING PRINCIPLES CONTENT Revenue by Product Group and Geography 02 Financial Highlights 04 Corporate Information 05 Group Corporate Structure 06 Chairman & CEO's Statement 08 Board of Director's Profile 16 Group Management Profile 24 Management Discussion and Analysis 25 Corporate Governance Overview Statement 34 Statement on Risk Management and 44 Internal Control Audit and Risk Management Commitee 48 Report Sustainability Statement 53 Financial Calendar 64 Statement on Directors' Responsibility 69 Financial Statements 70 Additional Compliance Information 143 Analysis of Shareholdings 144 List of Group Properties 148 Pelikan Group of Companies Directory 149 Notice of Annual General Meeting 152 Administrative Details 157 Form of Proxy * 02 | PELIKAN INTERNATIONAL CORPORATION BERHAD REVENUE BY PRODUCT GROUP AND GEOGRAPHY In most of our core markets, we compete against the global brands and we strive to compete with our quality, innovations as well as attractive pricing strategies. In Germany and Europe, Pelikan has strong market positions in its products such as Fine Writing Instruments ("FWI"), school colours (opaque paint box) and school writing instruments. In Americas, the brand focus is on office stationeries while in Asia its on FWI and office stationeries. REVENUE BY PRODUCT GROUP ANNUAL REPORT 2020 | 03 REVENUE BY GEOGRAPHY EUROPE Sales & Marketing organisations: Austria, Belgium, Bulgaria, Czech Republic, Germany, Greece, Hungary, Italy, Poland, Romania, Switzerland, Turkey Revenue : RM818,090,000 84.0% of total revenue (2019: 76.7%) Employees : 991 (2019: 1,067) Plants : 2 84.0% RM818,090,000 12.1% 3.9% RM118,130,000 RM38,221,000 AMERICAS Sales & Marketing organisations: REST OF THE WORLD Argentina, Colombia, Mexico Sales & Marketing organisations: Revenue : RM118,130,000 Malaysia, Japan, Singapore, Taiwan, 12.1% of total revenue Thailand, United Arab Emirates (2019: 18.1%) Revenue : RM38,221,000 Employees : 487 (2019: 558) 3.9% of total revenue Plants : 2 (2019: 5.2%) Employees : 61 (2019: 66) 04 | PELIKAN INTERNATIONAL CORPORATION BERHAD FINANCIAL HIGHLIGHTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 2019 2018 2017 2016 Revenue RM'000 974,441 1,060,698 1,123,994 1,234,835 1,180,489 Profit before tax RM'000 14,634 20,338 29,260 46,593 51,154 Profit for the financial year RM'000 11,394 9,026 8,012 30,000 35,071 Profit for the financial year attributable to owners of the parent RM'000 10,783 7,612 6,815 25,356 5,325 Equity attributable to owners of the parent RM'000 462,517 443,278 438,574 446,840 420,708 Basic and diluted earnings per ordinary share sen 1.79 1.34 1.24 4.62 0.97 Net asset per share attributable to owners of the parent sen 0.76 0.73 0.79 0.81 0.76 # No dividends were proposed or paid for the above financial years ANNUAL REPORT 2020 | 05 CORPORATE INFORMATION BOARD OF DIRECTORS NOMINATION COMMITTEE SHARE REGISTRAR Dato’ Indera Syed Tricor Investor & Issuing House Norulzaman bin Syed Services Sdn. Bhd. Dato’ Indera Syed Norulzaman bin Kamarulzaman (Chairman) Unit 32-01, Level 32, Tower A, Syed Kamarulzaman Lim Chee Hoong Vertical Business Suite Independent Non-Executive Najuuwa binti Sabli Avenue 3, Bangsar South Chairman No. 8, Jalan Kerinchi REMUNERATION COMMITTEE 59200 Kuala Lumpur Loo Hooi Keat Fong Wai Leong Malaysia President/Chief Executive Officer (Chairman) Tel: (+603) 2783 9299 Dato’ Indera Syed Fax: (+603) 2783 9222 Lim Chee Hoong Norulzaman bin Syed Independent Non-Executive Kamarulzaman REGISTERED OFFICE Director Lim Chee Hoong No. 9, Jalan Pemaju U1/15 Ahmad Al Farouk bin Ahmad Seksyen U1 Ahmad Al Farouk bin Ahmad Kamal Hicom Glenmarie Industrial Park Kamal Kim Kenny 40150 Shah Alam Non-Independent Non-Executive Selangor Darul Ehsan Malaysia Director EXECUTIVE COMMITTEE Dato’ Indera Syed Tel: (+603) 5569 5511 Najuuwa binti Sabli Norulzaman bin Syed Fax: (+603) 5569 5500 Non-Independent Non-Executive Kamarulzaman (Chairman) PRINCIPAL BANKERS Director Loo Hooi Keat AmBank (M) Berhad Lim Chee Hoong CIMB Bank Berhad Fong Wai Leong Fong Wai Leong Malayan Banking Berhad Independent Non-Executive Ahmad Al Farouk bin Ahmad OCBC Bank Malaysia Berhad Director Kamal Standard Chartered Bank Berhad Kim Kenny COMPANY SECRETARIES Non-Independent Non-Executive Chua Siew Chuan STOCK EXCHANGE LISTING Director (SSM PC No. 201908002648) Main Market of Bursa Malaysia (MAICSA 0777689) Securities Berhad, Ngau Kah Wye Malaysia Non-Independent Non-Executive Tan Loo Ee Stock Name: PELIKAN Director (SSM PC No. 201908002686) Stock Code: 5231 (MAICSA 7063694) (Alternate Director to Kim Kenny) WEBSITE (Appointed w.e.f. 24 February 2021) www.pelikan.com AUDITORS BDO PLT (LLP0018825-LCA & AF: 0206) AUDIT AND RISK MANAGEMENT Chartered Accountants COMMITTEE Level 8 Lim Chee Hoong (Chairman) BDO @ Menara CenTARa Fong Wai Leong 360 Jalan Tuanku Abdul Rahman Ahmad Al Farouk bin Ahmad 50100 Kuala Lumpur Kamal Malaysia Tel: (+603) 2616 2888 Fax: (+603) 2616 3190 06 | PELIKAN INTERNATIONAL CORPORATION BERHAD GROUP CORPORATE STRUCTURE Pelikan International Corporation Berhad 2.60% (Registration No.: 198001009827 (63611 - U)) 94.76% Pelikan Holding AG (SWITZERLAND) 100% 60% 100% 82.77% Pelikan Hellas Single Pelikan Ofis Ve Pelikan Asia Sdn. Bhd. Pelikan (Thailand) Co., Ltd. Member Ltd. Kirtasiye Malzemeleri (MALAYSIA) 40% (THAILAND) (GREECE) Ticaret Ltd. Sirketi (TURKEY) 100% 100% Pelikan Singapore Pte. Ltd. Pelikan Austria (SINGAPORE) Gesellschaft m.b.H. (AUSTRIA) 99% PT Pelikan Indonesia 100% (INDONESIA) Pelikan PBS-Produktion Verwaltungs-GmbH 99% (GERMANY) Pelikan Trading India Private Limited
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