Annual Report (PDF, 17.64

Prioritising Your Needs At F&N, we create value by prioritising the needs of our customers and consumers. Now with just a few clicks from the comfort of your home, you’ll get goodness delivered to you. Our products have satisfied the tastes of consumers from all walks of life for generations and this is how we will continue to bring smiles to everyone in tandem with our promise of ‘Pure Enjoyment, Pure Goodness.’ Visit our e-store, > fnlife.com.my Cover Rationale F&N has been a part of many treasured moments for the past 136 years. The burst of colours on our cover represents the emotion of enjoyment and goodness embodied in each of our product. The splash of white denotes milk – so full of nutritious goodness. The dash of brown are our teas – all-time favourites that are now available in low-sugar variants. Then we have royal purple, the colour of our latest variant, blackcurrant for our best-selling and market leader, 100PLUS. ANNUAL REPORT 2019 Overview WHAT’S INSIDE OVERVIEW Who We Are ...........................................................................004 Business Review Our Story ..................................................................................004 01 Vision ...........................................................................................005 Food & Beverages Mission ........................................................................................005 Malaysia Our Brands ..............................................................................007 F&NHB at A Glance ...........................................................008 pg074 Our Product Categories .................................................010 Our Market Leading Positions ...................................010 2019 Awards ..........................................................................011 Food & Beverages Our Global Presence .........................................................012 Thailand Chairman’s Message .........................................................014 Group Financial Highlights 2019 .............................018 pg080 Corporate Information .....................................................020 Corporate Structure ..........................................................021 Key Milestones ......................................................................022 MANAGEMENT DISCUSSION AND ANALYSIS Strategic Report Performance Review Group Chief Executive Officer’s Statement ......................048 5-Year Group Financial Summary ...........................086 Financial Market Review .......................................................................054 5-Year Group Financial Highlights ..........................087 Highlights Value Creation Business Model ................................056 Simplified Group Statement of 2019 Stakeholder Engagement .............................................058 Financial Position ............................................................088 Material Issues .......................................................................060 Group Segmental Analysis ...........................................089 pg018 Strategic Direction and Focus, Statement of Value Added ..........................................090 Achievements & 2020 Priorities ...........................066 Group Quarterly Financial Performance .............091 Key Performance Indicators ........................................068 Financial Calendar ..............................................................093 LEADERSHIP Principal/Key Risks and Mitigation .........................070 Investor Information .........................................................094 Board Composition ............................................................024 Share Price Chart ................................................................095 Profile of Board of Directors .......................................025 Business Review Management Team ...........................................................036 Food & Beverages Malaysia .........................................074 Profile of Chief Executive Officer .............................038 Food & Beverages Thailand .........................................080 Profile of Key Senior Management ........................039 Organisation Structure ....................................................044 GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION Corporate Governance Overview Statement .....098 Directors’ Report ..................................................................132 Shareholdings Statistics .................................................216 Nominating Committee Report ................................108 Statements of Financial Position .............................138 List of Properties .................................................................219 Audit Committee Report ...............................................110 Statements of Profit or Loss ......................................139 Corporate Directory ...........................................................222 Statement on Risk Management and Statements of Other Comprehensive Notice of Annual General Meeting ........................224 Internal Control ................................................................113 Income ...................................................................................140 Administrative Details for the Statement on Directors’ Responsibility ...............117 Statements of Changes in Equity ...........................141 58th Annual General Meeting Additional Compliance Information .......................118 Statements of Cash Flows ............................................144 of Fraser & Neave Holdings Bhd .........................227 Notes to the Financial Statements ........................146 Proxy Form ............................................................................... • Statement by Directors ..................................................211 SUSTAINABILITY REPORT Statutory Declaration .......................................................211 Independent Auditors’ Report ...................................212 Sustainability Statement ................................................122 th Venue Date Ballroom 1, First Floor, Sime Darby Convention Centre, Monday, 58 th 1A, Jalan Bukit Kiara 1, 60000 Kuala Lumpur. 20 January 2020 ANNUAL GENERAL MEETING at 10.00 a.m. 001 002 FRASER & NEAVE HOLDINGS BHD Welcome to FRASER & NEAVE HOLDINGS BHD’S ANNUAL REPORT FOR ANNUAL REPORT Provides a comprehensive THE FINANCIAL YEAR 2019 assessment of the Group’s performance and financial statements for 2019. SUSTAINABILITY REPORT Delivers a balanced report on our efforts to create value for stakeholders and conducting business in a responsible manner. The report complies with the Global Reporting Initiative (GRI) Standards and Bursa Malaysia Securities Berhad Main Market Listing Requirements in relation to Sustainability Statements in Annual For this financial year 2019, Fraser & Neave Holdings Bhd has incorporated Reports. some elements of integrated reporting approach. We trust that transparency and well-balanced reporting is the way to understanding the Group’s process Read the full version of and businesses. Through the changes we have instituted into our reports this F&NHB Annual Report 2019 and Sustainability year, and aligning with the principles of integrated reporting, we hope to provide Report 2019 here. a clear account of what we believe value creation means for our stakeholders. FEATURE IN THIS ANNUAL REPORT Follow the steps below to scan the QR code reader in 3 easy steps 01 02 03 Download the “QR Run the QR Code Reader Get access to the soft Code Reader” on app and point your copy of our reports and App Store or Google camera to the QR Code contact information Play WWW.FN.COM.MY ANNUAL REPORT 2019 Overview WE CREATE VALUE THROUGH 6 CAPITALS 01 02 04 06 01 03 05 Financial Capital Human Capital Manufactured Capital Natural Capital Intellectual Social and Capital Relationship Capital OUR STAKEHOLDERS REGULATIONS COMPLIED • Shareholders & Financial Investors • Main Market Listing Requirements of Bursa Malaysia Securities Berhad • Employees • Companies Act 2016 • Distributors & Trade Customers • Malaysian Code on Corporate Governance • Suppliers • International Integrated Reporting Framework • Consumers • Malaysian Financial Reporting Standards (MFRS) • Communities • Regulators ASSURANCE DIRECTORS’ APPROVAL • Internal controls and management assurance The Board acknowledges and approves its responsibility to ensure the • Compliance and internal audit reviews integrity of the Annual Report. In the Board’s opinion, the report addresses all • External audit by KPMG PLT on financial information material issues and matters and fairly presents the Group’s performance for • External audit by Lloyd’s Register Quality Assurance on selected Environment the financial year 2019. and Social disclosures • Board approval assisted by the Board Committees CROSS REFERENCES We value and appreciate all feedback to help make our WWW.FN.COM.MY future reports more relevant to our stakeholders. Please direct your comments and questions to: Indicates where more detail can be accessed elsewhere in this report Email: Phone number: [email protected] +603-9235 2288 Contact Us Mail: Communications & Corporate Affairs Department, No. 3, Jalan Metro Pudu 1, Fraser Business Park, Off Jalan Yew, 55100 Kuala Lumpur 003 004 FRASER & NEAVE HOLDINGS BHD Who We Are raser & Neave Holdings Bhd (F&NHB or the Group) is listed

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