berita The Official Newsletter of ISSUE NO: 67 JUL – SEPT 2015 KDN NO: PP9740/05/2013(033253) For Internal Circulation Only CULTIVATING PARTNERSHIP, ENHANCING VALUE Tan Sri Dato’ Lee Conferred IOI Oleo Achieves IOILC Obtains Certification 06 Leadership Award 15 Sustainability Milestone 17 for its Sustainable Shea Supply Chain CONTENTS 02 BERITAIOI COVER FEATURE PROPERTY Cultivating Partnership, 04 Enhancing Value IOI Takes on the 11 Bursa Bull Charge A Dose of Saturday Night Fever 12 Run for Charity at Putra Charity Run 2015 CORPORATE UPDATES 06 Q4 Earnings for IOIC and IOIPG OLEOCHEMICALS Tan Sri Dato’ Lee Conferred Leadership Award 07 IOI Joins Malaysian Collective Impact Initiatives IOI Collaborates with Tenaganita to Review Social Conditions HUMAN RESOURCE DEVELOPMENT 08 Building a Pipeline of Leaders IOI Pan-Cen in VEF 2015 13 14 IOI Pan-Cen Visits Overseas Customers Safety First in CAER Dialogue 15 IOI Oleo Achieves Sustainability Milestone 09 Graduate Trainee Programme Investing in Human Capital Introduction of IOI Core Values’ Video 16 Charity for Community Welfare 10 Explore your Senses in the Dark PUBLISHED BY EDITOR-IN-CHIEF WEBSITE IOI Group Karen Liew www.ioigroup.com Two IOI Square, IOI Resort, EDITOR www.ioiproperties.com.my 62502 Putrajaya, Malaysia. Carine Yap PRINTED BY Tel: 03.8947.8888 DEPUTY EDITOR ST ENTERPRISE Fax: 03.8947.8958 Ho Hsu Wen AS 8, Jalan Hang Tuah 1, Salak South Garden, 57100 Kuala Lumpur. EDITOR’S NOTE BERITAIOI EDIBLE OILS 03 17 IOILC Obtains Certification for its Sustainable Shea Supply Chain EDITOR’S NOTE 18 Get to Know IOILC in 2:31 Mins Strategic vision, tenacity and commitment are some of the traits that define a great Rotterdam Refinery Celebrates 10 Years leader, as are the relentless pursuit of new opportunities and persistence which have all propelled IOI Group to become a global force under the hands of Tan Sri Dato’ of Production Lee Shin Cheng. His leadership efforts earned him the prestigious Palm Oil Industry 19 Promoting Palm Oil as the Healthy Alternative Leadership Award 2015 (page 06), and in this issue, we witness how leadership traits play a key role in advancing IOI’s businesses. IOILC Americas to be Test Site for New The acquisition of Cremer Oleo's entire oleochemical manufacturing business opens CRM Implementation up new opportunities and enables IOI Oleochemical Industries Bhd (IOI Oleo) to move further up the value chain into a more specialised downstream oleochemical manufacturing business. This synergistic move (highlighted in Cover Feature), together with its successive initiatives, including Acidchem’s first production and shipment of RSPO SG fatty acids (page 15), has served to cement IOI Oleo’s position as a leading 20 oleochemical player and ensured the growing momentum of its leading presence. IOI Loders The commitment to excel is also evident in IOI Loders Croklaan (IOILC) which has Croklaan Goes been gearing up with increased efforts to spur the leading vegetable oils and fats company to greater heights since the unveiling of its Vision 2025. On 9 September “No PHO”at IFT15 2015, it officially launched a new corporate video that was showcased to various customers and notable exhibitions, including the MPOC Networking Seminar in 21 Webinar on Sustainable Palm Oil Poland. So far, response has been positive. Turn to page 18 for a peek at its contents, or better still, view it at www.ioiloders.com. Another milestone is noted in IOILC’s Showcase at Fi Asia 2015 journey to sustainability and transparency as it obtains the first ISCC certification for 22 IOILC Asia Organises Partner Conference its shea supply chain (page 17). Meanwhile, team spirit and fitness run high as IOI Properties Group Berhad (IOIPG) Strengthening Bond over Aidilfitri Celebration in JB take to the streets with the community in the 11th Putra Charity Run (page 12). Check out the rest of the Property segment for this positive spirit in action. IOI MALL Over in our hotels and malls, joy and excitement are on the menu as the festive spirit abounds, and closer relationships are forged with shoppers and employees. Indeed, IOIPG’s completion of two direct ramps (a RM35 million flyover and RM15 million slip road) to IOI Resort City is a timely effort that enhances strategic access and provides 23 greater convenience. Blossoming Lastly, it is good to note that IOI Corporation Berhad (IOIC) and IOIPG’s Annual Mid-Autumn Reports have been released (view the full report of IOIC at www.ioigroup.com and Festival Celebrations IOIPG at www.ioiproperties.com.my) in expectation of a satisfactory performance for the remaining financial period. 24 A Symphony of Goodwill Carine Yap IOI Mall Kulai Counts Down to Merdeka! Keep your contributions flowing in! The Editorial Team would like to express its heartfelt gratitude for the input of Berita IOI from HOTEL the contributors mentioned below. We look forward to a continued contribution of interesting articles and pictures from all of you. After all, Berita IOI is a newsletter for all the staff of IOI 25 Building Relationships through Cluster Group and we would all like to see this newsletter as a publication that we are all proud of. Initiatives Kindly forward your contributions to [email protected]. Contributors Corporate Loders Croklaan (Europe) IOI Mall Puchong Riang Ria Shanice Kong Jan-Paul Back Stephanie Wong Aidilfitri Charity Wendy Ng Tan Sang Jui Loders Croklaan (Americas) IOI Mall Kulai Property Deana Ingram Eric Low Masjuliana Mansoor FAMILY SPIRIT Ling May Yuen Loders Croklaan (Asia) Nicholas Poon Putrajaya Marriott Hotel Catherine Fan Jamie Au Marilyn Goh Lydia Mae Hendroff IOI City Mall Nor Asyikin Binti Ramlee Oleochemicals 26 Katy Teo Palm Garden Hotel KKIOI Goes Wafli Bin Ali Choong Wai Tuck Audrey Yap on a 4D/2N Wong Pin Huey Holiday to Thailand! Irin DeCruz Emily Jessica COVER FEATURE 04 BERITAIOI CULTIVATING PARTNERSHIP, ENHANCING VALUE leochemicals are used in a wide variety of applications such as the manufacturing of detergents, Osurfactants, shampoos, soaps, cosmetics, pharmaceutical products, food additives and plastics. From the food and pharmaceutical to the paint and textile industries, its diversity and versatility has boosted its global demand, and by 2019, the oleochemical’s market size is projected to grow at a Compound Annual Growth Rate (CAGR) of 4.2% to reach $25.91 billion. Driven by new growth opportunities in the international The timely and synergistic acquisition* enables IOI Oleo to move oleochemical market, IOI Oleochemical Industries Berhad (IOI further up the value chain into a more specialised downstream Oleo), one of the world’s leading oleochemical producers, made oleochemicals manufacturing business, particularly into the a strategic acquisition in line with its mission “to be a leading higher margin pharmaceutical, cosmetics, food and performance producer and supplier of quality oleochemicals and related products chemicals market worldwide. It will also enable the transfer of by consistently satisfying customers’ needs through continuous advanced technical, research and development (R&D), application improvement and sustaining long-term growth.” development and process know-how back to Malaysia that will benefit IOI Oleo’s existing production sites in Penang and Johor. Strategic Growth in New Frontiers On 9 September 2015, IOI Oleo entered into a conditional asset Sustaining Cutting-Edge Capabilities purchase agreement with Cremer Oleo GmbH & Co KG (Cremer Led by IOI Oleo Executive Director Mr Tan Kean Hua, IOI Oleo’s Oleo) to acquire Cremer Oleo’s entire oleochemical manufacturing production sites consist of wholly-owned subsidiaries Acidchem business in Germany for a total purchase consideration of 89.4 International Sdn Bhd, Derichem (M) Sdn Bhd and IOI Esterchem million (RM433.3 million). The agreement was sealed through IOI (M) Sdn Bhd (IOI Esterchem) in Prai, Penang, and IOI Pan-Century Oleo’s indirect wholly-owned subsidiary, Alstersee 217. V V GmbH Oleochemicals Sdn Bhd (IOI Pan-Cen) in Pasir Gudang, Johor. (to be renamed as IOI Oleo GmbH in the future). With a current combined total capacity of 740,000 MT per annum, IOI Oleo supplies to a global customer base in more than 60 Cremer Oleo has two production facilities located in Witten and countries worldwide including China, India, Japan and Europe. Wittenberge with a combined processing capacity of approximately 39,200 MT per annum. Both are strategically located at the centre of Its manufacturing facilities are accredited by globally-recognised European Union, giving close proximity to key markets in Western bodies in various areas of quality and international standards of Europe and emerging ones in Eastern Europe. The production plant compliance to ensure production of top-notch quality products in Witten offers a broad array of mostly branded oleochemicals such as Palmac (fatty acids and glycerine), Palmsabun (soap specialty products for the pharmaceutical, personal care, cosmetic, noodles) and Palmsurf (esters). With these, IOI Oleo recorded a food and performance chemicals markets worldwide. Meanwhile, sales of 586,076 MT for FY2015. the Wittenberge plant provides high performance capacities for esterification with multi-step short-path distillation, distillation IOI Oleo’s latest development and pursuit towards constant and fractionation of fatty acids, and production of medium-chain improvement includes the IOI Esterchem that was developed in triglycerides. line with the Government’s Economic Transformation Programme’s (ETP) Entry Point Project (EPP) 6 under the Palm Oil National Key The acquisition is one of IOI Oleo’s numerous progressive Economic Area (NKEA). Whilst some parts of the RM130 million efforts underlining its guiding mantra of “Cultivating Partnership, ester plant are in the final stages of commissioning, IOI Esterchem Enhancing Value” that steers IOI Oleo to continuously create has commenced production of products for commercial sale mutually-beneficial relationships and forge lasting value for its whilst it continues to expand its product portfolio catering for the business since the inception of the first palm-based oleochemicals food, pharmaceutical, personal care and cosmetics segments.