Building RESILIENCE And
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Building RESILIENCE and 196501000477 (6265-P) IMPLEMENTING ANNUAL REPORT 2020 GROWTH Strategies We were not spared the difficulties of operating in a pandemic environment for most of 2020. The devastating effects of the global coronavirus crisis, coupled with the global economic general slowdown, were beyond anything we have experienced. We were exposed to the spread of uncertainty, economic instability, health risks and livelihoods of our workforce and the communities in which we operate. The importance of BUILDING RESILIENCE in the face of adversity, even amidst crisis, is about leveraging on opportunities. We have recalibrated our strategies, plans and operations to ensure our sustainable growth, driven by our commitment to balancing the needs of ‘People, Planet and Profit’ in our core businesses of Building RESILIENCE and Plantation and Healthcare. IMPLEMENTING IMPLEMENTING GROWTH STRATEGIES will strengthen, elevate and Strategies GROWTH propel TDM Berhad forward to achieve our commitment to continue creating and delivering sustainable value to our stakeholders. TDM BERHAD ANNUAL REPORT 2020 TH DIGITAL VERSION 56ANNUAL GENERAL MEETING Broadcast Venue Scan the QR code to access Tricor Business Centre, www.tdmberhad.com.my Gemilang Meeting Room, Unit 29-01, Level 29, Follow the steps below to scan the QR Code reader in 3 easy steps: Tower A Vertical Business Suite Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur Download the “QR CodeReader” Run the QR Code Reader app and 1 on App Store or Google Play. 2 point your camera to the QR Code. Date & Time Thursday 24th June 2021 11.00 a.m. Access the soft copy of The soft copy version of 3 the Annual Report. TDM BERHAD’s Annual Report 2020 is also available on our website. VISION To be an iconic corporation in the East Coast that creates sustainable values for stakeholders. MISSION To be a model corporate citizen in Terengganu: • To create sustainable value for our shareholders. • To improve the well-being of our stakeholders while protecting the environment. • To deliver quality products and services that are above the expectation for our customers. • To widen our regional presence. • To stimulate human capital development. CORE VALUES Shariah Compliance Environmentally Friendly People Centric Good Governance Teamwork Innovation CAUTIONARY STATEMENT TDM makes no representation or warranty, whether expressed or implied, as to the accuracy or completeness of the facts highlighted in this Annual Report, disclaiming responsibility from any liability that might arise from the reliance on its contents. This Annual Report may contain “forward-looking statements”. Forward-looking statements involve inherent risks and uncertainties and other factors that are in many cases beyond our control. Although TDM believes that the expectations of its Management as reflected by such forward-looking statements are reasonable based on current information, no assurance can be given that such expectations will prove to have been correct. Should one or more of the risks and uncertainties materialise, actual results may vary materially from those anticipated or projected. Accordingly, readers are cautioned not to place undue reliance on such forward-looking statements. In any event, these statements speak only as of their dates and we undertake no obligation to update or revise any of them, whether as a result of new information, future events, or otherwise. INSIDE THIS REPORT 01 ABOUT TDM BERHAD 04 2020 IN FOCUS 1 Vision, Mission and Core Values 66 Calendar of Events 4 Who We Are 68 Media Highlights 6 2020 Key Highlights 8 Milestones and Achievements SUSTAINABILITY STATEMENT 10 Corporate Structure 05 11 Corporate Information 70 About this Statement 12 Investor Relations 72 Who We Are 74 Message from Our Executive Director 76 Keeping Our Stakeholders Engaged HIGHLIGHTS 02 78 Our Sustainability Journey 13 Financial Calendar 86 Materiality Matters 14 Financial Highlights 90 Moving Ahead with the 2030 Agenda for the United Nations Sustainable Development Goals LEADERSHIP AT TDM: 94 Enhancing Economic Value 03 PERSPECTIVES AND PROFILES 104 Preserving the Environment 121 Driving Positive Social Impact 19 Management Discussion and Analysis 140 Understanding Sustainability 52 Board of Directors Profile to Be the Best for the World 59 Key Senior Management Profile 143 Global Reporting Initiative (GRI) Indicators & 64 Management Team FTSE4Good Bursa Malaysia (F4GBM) for Sustainability Statement Only 06 GOVERNANCE 08 ACCOUNTABILITY 145 Policies 317 Statistics of Shareholdings 153 Corporate Governance Overview Statement 319 Group Plantation Hectarage Statement 171 Code of Business Ethics 320 5-Year Group Plantation Statistics 173 Audit Committee Report 321 5-Year Group Healthcare Statistics 181 Statement on Risk Management 322 List of Properties and Internal Control 327 Group Directory 189 Additional Compliance Statement 329 Notice of 56th Annual General Meeting 190 Responsibility Statement by 333 Statement Accompanying Notice of the Board of Directors Annual General Meeting 334 Information Guide to Shareholders 07 FINANCIAL STATEMENTS • Proxy Form 192 Directors’ Report 200 Statement by Directors 200 Statutory Declaration 201 Independent Auditors’ Report 208 Statements of Comprehensive Income 210 Statements of Financial Position 212 Statements of Changes in Equity 215 Statements of Cash Flows 218 Notes to the Financial Statements 4 Building RESILIENCE and IMPLEMENTING GROWTH Strategies TDM Berhad | Annual Report 2020 ABOUT TDM WHO WE ARE TDM Berhad (TDM or the Group) was incorporated on 1 December 1965 and listed on the main market of Bursa Malaysia Securities Berhad under the plantation sector in 1970. Following a successful restructuring exercise and new strategic direction since 2000, TDM has grown into a leading player in the oil palm plantation and healthcare sectors. PLANTATION DIVISION 44,247 Hectares (ha) of Planted Oil Palm 15 Oil Palm Estates 3 Bio-Composting Plants 3 Palm Oil Mills 3 Biogas Plants Mechanising our operations - loading of fresh fruit bunches (FFB) (2 plants are currently under construction) using crane and grabber. HEALTHCARE DIVISION 4 Specialist Hospitals 394 Beds The Operation Theater at KMC is equipped with the latest high- tech medical equipment. TDM Berhad | Annual Report 2020 Building RESILIENCE and IMPLEMENTING GROWTH Strategies 5 ABOUT TDM WHO WE ARE TDM develops and manages 15 oil palm estates and three palm oil mills. Our estates are located in Terengganu, Malaysia and Kalimantan Barat, Indonesia. TDM’s three palm oil mills are in Sungai Tong and Kemaman in Terengganu and Nanga Pinoh in West Kalimantan, Indonesia. The Group also operates three Bio-Composting plants and three Biogas plants located in both Malaysia and Indonesia. Currently, the Group has a total of 44,247 ha of planted oil palm at its plantations in Terengganu (33,520 ha) and Kalimantan (10,727 ha). TDM's estates are situated at the following locations: • Sungai Tong Complex, Terengganu estates: Bukit Bidong, Jaya, Fikri, Tayor and Pelung; • Bukit Besi Complex, Terengganu estates: Jerangau, Pinang Emas, Gajah Mati and Majlis Agama Islam; • Kemaman Complex, Terengganu estates: Air Putih, Pelantoh, Tebak and Jernih; and • Nanga Pinoh, West Kalimantan estates: North and South. Our estates and mills in Terengganu are 100% Roundtable on Sustainable Palm Oil (RSPO) certified except for the Bukit Bidong Estate, and 100% Malaysian Sustainable Palm Oil (MSPO) certified. The Group’s Healthcare Division, Kumpulan Medic Iman Sdn. Bhd. (KMI), owns and operates four specialist hospitals, which offer affordable healthcare services to the community. KMI also manages the Tawau Specialist Centre in Sabah. The four hospitals operated by KMI are: • Kelana Jaya Medical Centre (KJMC) in Petaling Jaya, Selangor; • Kuantan Medical Centre (KMC) in Kuantan, Pahang; • Kuala Terengganu Specialist Hospital (KTS) in Kuala Terengganu, Terengganu; and • Taman Desa Medical Centre (TDMC) in Kuala Lumpur. Trusted Healthcare Provider of Choice is the vision of the Healthcare Division. The services offered at all its hospitals cover key disciplines such as general medicine, paediatrics, orthopaedics, general surgery, radiology, obstetrics and gynaecology, ear, nose and throat (ENT), dermatology, ophthalmology, urology, anaesthesiology and gastroenterology. 6 Building RESILIENCE and IMPLEMENTING GROWTH Strategies TDM Berhad | Annual Report 2020 ABOUT TDM 2020 KEY HIGHLIGHTS 4,321 Employees and Workers PLANTATION HEALTHCARE Manages Operates 44,247 4 ha of Oil Palm Plantation Specialist Hospitals • Kelana Jaya Medical Centre (KJMC), Selangor • Kuantan Medical Centre (KMC), Pahang Estates • Kuala Terengganu Specialist Hospital (KTS), Terengganu MSPO100% Certification 15 • Sungai Tong Complex, • Taman Desa Medical Centre (TDMC), Kuala Lumpur • RSPO Certification for Bukit Besi Complex and Malaysian operations Kemaman Complex in except for the Bukit Terengganu Bidong Estate. Certification • Nanga Pinoh in • ISCC EU Certification Kalimantan Barat, for South Zone Indonesia ISO 9001:2015 operation units in Terengganu. Palm Oil Mills & Bio-Composting Beds as of 31 December 2020 Years 394 3 Plants 55 • Sungai Tong, Terengganu Experience in Plantation Operations • Kemaman, Terengganu Total number of patients since establishment • Nanga Pinoh, Kalimantan KJMC KTS Barat, Indonesia 359,932 397,901 Biogas 3 Plants KMC TDMC • Nanga Pinoh, Kalimantan Barat, Indonesia • Sungai Tong, Terengganu (Under construction) 1,187,999 805,699 • Kemaman,