2017 Annual Report (Hires) (12910
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Building a Fair Society At British American Tobacco Malaysia, we believe that sustainable growth for a company, the country, the people and the community are deeply intertwined. And it starts with our commitment and actions that lead towards a society where diversity is treasured, positive actions are required, freedom of choice is respected and fairness is expected. BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD | ANNUAL REPORT 2017 Diversity We treasure the diversity of people, background, culture, identity and ideas. We believe by harnessing the power of diversity, we are able to promote a society that is more inclusive, collaborative and innovative. 5 BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD | ANNUAL REPORT 2017 Positive Action We believe that changes that can bring real value to the society can only take place when we all take steps to enact positive actions. 7 BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD | ANNUAL REPORT 2017 Freedom of Choice We believe that respecting the individual rights and their freedom of choice can foster better equality, understanding and harmony in the society. 9 BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD | ANNUAL REPORT 2017 Fairness We believe that fairness in the marketplace, workplace and community is important in promoting transparency, equality, integrity and progress in the society. 11 Results At A Glance RM3,002 RM382 MILLION MILLION Revenue Shareholder’s Fund th 57 RM639 RM493 Annual General MILLION MILLION Meeting (AGM) of Profit Before Tax Net Profit British American Tobacco (Malaysia) Berhad RM169 129% SEN Net Returns on Net Dividend Per Share st Venue: Ballroom 2, 1 Floor, Sime Darby Convention Centre Shareholder’s Fund 1A Jalan Bukit Kiara 1, 60000 Kuala Lumpur Date: Thursday, 19 th April 2018 Time: 10.30a.m. Information online at www.batmalaysia.com Overview of British American Tobacco Malaysia 497 100+ 53.9% Employees Years of History Market Share in Malaysia Leadership Growth Productivity Sustainability Winning Organisation 172.5 sen Earnings Per Share Certified Top Employer Results At A Glance RM3,002 RM382 MILLION MILLION Revenue Shareholder’s Fund th 57 RM639 RM493 Annual General MILLION MILLION Meeting (AGM) of Profit Before Tax Net Profit British American Tobacco (Malaysia) Berhad RM169 129% SEN Net Returns on Net Dividend Per Share st Venue: Ballroom 2, 1 Floor, Sime Darby Convention Centre Shareholder’s Fund 1A Jalan Bukit Kiara 1, 60000 Kuala Lumpur Date: Thursday, 19 th April 2018 Time: 10.30a.m. Information online at www.batmalaysia.com Overview of British American Tobacco Malaysia 497 100+ 53.9% Employees Years of History Market Share in Malaysia Leadership Growth Productivity Sustainability Winning Organisation 172.5 sen Earnings Per Share Certified Top Employer BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD | ANNUAL REPORT 2017 1 Overview 2 Performance 3 Leadership 4 Governance 5 Growth 13 Overview of British 20 Management Discussion 35 Corporate Information 53 Standards of Business 87 Premium Segment Inside Conduct Statement American Tobacco Malaysia and Analysis 36 Corporate Structure 89 Aspirational Premium This Report 56 13 Results at a Glance • 2017 Performance 38 Profile of Directors Statement on Corporate Segment Overview Governance 16 Message to Shareholders 46 Profile of Leadership Team 90 Value For Money • Business and Operations 72 Other Compliance Segment Information • Our Vision and Strategic 90 Trade Marketing Focus 73 Audit Committee Report Activities in 2017 • Review of Financial 76 Nomination Committee Results Report • 2018 Outlook 78 Statement on Risk Management and • Five Year Performance Internal Control Highlights 28 Corporate Profile 29 British American Tobacco Malaysia in the News 30 Awards and Achievements 32 2017 Corporate Events Highlights Winning Financial Other 6 Productivity 7 Organisation 8 Sustainability 9 Statements 10 Information 93 Business Development 99 Developing a Winning 109 Sustainability Agenda 140 Directors’ Responsibility 201 Analysis of Shareholdings Organisation Statement 95 People Development 110 Sustainability Framework 205 Particulars of Properties Employee Engagement: Directors’ Report 97 Future Fit Information 100 111 Community 141 206 Corporate Directory Technology Employees’ Benefits and 145 Income Statements Wellbeing 114 Workplace 207 Notice of Annual General 146 117 Environment Statements of Other Meeting 102 High Performance Comprehensive Income Leadership 118 Marketplace 211 Administrative Details 147 Balance Sheets 104 Learning & Organisational 119 Disclosure Scope • Proxy Form Development 148 Consolidated Statement of 119 Aspects & Boundaries and Changes in Equity 107 Your Voice 2017 Materiality 150 Statement of Changes in 120 Stakeholders Equity 122 GRI- G4 Indicators 2017 152 Statements of Cash Flows 154 Notes to the Financial Statements 195 Statement by Directors 196 Statutory Declaration 197 Independent Auditors’ Report 1 1OverviewOverview 2 2PerformancePerformance 3 3LeadershipLeadership 4 4GovernanceGovernance 5 5GrowthGrowth 13 13 OverviewOverview of Britishof British 20 20 ManagementManagement Discussion Discussion 35 35 CorporateCorporate Information Information 53 53 StandardsStandards of Businessof Business 87 87 PremiumPremium Segment Segment InsideInside ConductConduct Statement Statement AmericanAmerican Tobacco Tobacco Malaysia Malaysia andand Analysis Analysis 36 36 CorporateCorporate Structure Structure 89 89 AspirationalAspirational Premium Premium ThisThis Report Report 56 56 13 13 ResultsResults at a at Glance a Glance • 2017• 2017 Performance Performance 38 38 ProfileProfile of Directorsof Directors StatementStatement on Corporateon Corporate SegmentSegment Overview Overview GovernanceGovernance 16 16 MessageMessage to Shareholdersto Shareholders 46 46 ProfileProfile of Leadershipof Leadership Team Team 90 90 ValueValue For ForMoney Money • Business• Business and and Operations Operations 72 72 OtherOther Compliance Compliance SegmentSegment InformationInformation • Our• Our Vision Vision and and Strategic Strategic 90 90 TradeTrade Marketing Marketing Focus Focus 73 73 AuditAudit Committee Committee Report Report ActivitiesActivities in 2017 in 2017 • Review• Review of Financialof Financial 76 76 NominationNomination Committee Committee Results Results ReportReport • 2018• 2018 Outlook Outlook 78 78 StatementStatement on Riskon Risk ManagementManagement and and • Five• Five Year Year Performance Performance InternalInternal Control Control Highlights Highlights 28 28 CorporateCorporate Profile Profile 29 29 BritishBritish American American Tobacco Tobacco MalaysiaMalaysia in the in the News News 30 30 AwardsAwards and and Achievements Achievements 32 32 20172017 Corporate Corporate Events Events HighlightsHighlights WinningWinning FinancialFinancial OtherOther 6 6ProductivityProductivity 7 7OrganisationOrganisation 8 8SustainabilitySustainability 9 9StatementsStatements 1010InformationInformation 93 93 BusinessBusiness Development Development 99 99 DevelopingDeveloping a Winning a Winning 109109SustainabilitySustainability Agenda Agenda 140140Directors’Directors’ Responsibility Responsibility 201201AnalysisAnalysis of Shareholdingsof Shareholdings OrganisationOrganisation StatementStatement 95 95 PeoplePeople Development Development 110110SustainabilitySustainability Framework Framework 205205ParticularsParticulars of Propertiesof Properties EmployeeEmployee Engagement: Engagement: Directors’Directors’ Report Report 97 97 FutureFuture Fit InformationFit Information 100100 111 111 CommunityCommunity 141 141 206206CorporateCorporate Directory Directory TechnologyTechnology Employees’Employees’ Benefits Benefits and and 145145 IncomeIncome Statements Statements WellbeingWellbeing 114 114 WorkplaceWorkplace 207207NoticeNotice of Annualof Annual General General 146146 117 117 EnvironmentEnvironment StatementsStatements of Otherof Other MeetingMeeting 102102 HighHigh Performance Performance ComprehensiveComprehensive Income Income LeadershipLeadership 118 118 MarketplaceMarketplace 211 211 AdministrativeAdministrative Details Details 147147 BalanceBalance Sheets Sheets 104104 LearningLearning & Organisational & Organisational 119 119 DisclosureDisclosure Scope Scope • • ProxyProxy Form Form DevelopmentDevelopment 148148 ConsolidatedConsolidated Statement Statement of of 119 119 AspectsAspects & Boundaries & Boundaries and and ChangesChanges in Equity in Equity 107107 YourYour Voice Voice 2017 2017 MaterialityMateriality 150150StatementStatement of Changesof Changes in in 120120StakeholdersStakeholders EquityEquity 122122GRIGR- G4I- G4Indicators Indicators 2017 2017 152152 StatementsStatements of Cashof Cash Flows Flows 154154 NotesNotes to theto the Financial Financial StatementsStatements 195195 StatementStatement by Directorsby Directors 196196 StatutoryStatutory Declaration Declaration 197197 IndependentIndependent Auditors’ Auditors’ Report Report 15 BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD | ANNUAL REPORT 2017 “Our transformation has allowed us to strengthen our commercial capabilities, underlined by our gradual share recovery in 2017, and as such we are confident that we can continue our 100 years of legacy in Damansara City.” Tan Sri Dato’ Seri (Dr.) Aseh Bin Haji Che Mat Chairman Erik Stoel Managing Director Message to Shareholders Dear Shareholders, The ‘Journey of Transformation’ initiated by British American to being an active contributor to the community through our Tobacco Malaysia (the Group) in 2016, necessitated by the various corporate social investments. challenging environment