th 50 Golden Years of EXCELLENCE REACHING GREATER HEIGHTS ANNIVERSARY Annual Report 2017 The Road to Success Property 1,732 Consolidated Profit Before Tax Our leadership position in our core businesses supported by financial (RM Million) strength puts us in good stead to achieve greater heights in the future. Consumer Products 1,401 1,293 1,211 1,181 1,121 1,057 1,063 1,028 917 Environmental 840 763 733 Engineering & 707 Utilities 629 Film Exhibition & 509 392 409 Distribution 369 Grains & 338 347 312 312 322 Agribusiness 268 236 204 210 170 157 57 63 55 65 69 69 77 68 2 3 5 26 27 39 (0.7) 1968 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year of Incorporation 20 26 29 101 109 119 135 173 275 388 375 424 433 420 425 1,205 1,524 2,069 2,686 2,395 2,670 3,120 3,528 3,821 4,715 4,817 5,051 4,971 5,206 5,394 5,805 6,134 6,369 7,289 11,984 13,216 15,067 13,914 15,199 15,579 17,065 18,605 21,925 22,703 22,888 Total Assets (RM Million) 50 Golden Years of EXCELLENCE REACHING GREATER HEIGHTS 1960s The Milestones of PPB Group Berhad PPB Group The Milestones of The beginning of PPB Group Berhad In 1968... Perlis Plantations Berhad (“PPB”) was incorporated on 1 November 1968, to undertake large scale cultivation and milling of sugar cane in Chuping, Perlis in response to the Government’s wish to establish a local sugar industry. 1969 The Federal Land Development Authority (FELDA) and PPB were each alienated about 4,450 hectares of land for the sugar project and the parties established a 50:50 joint venture sugar cane mill and refinery under Kilang Gula Felda Perlis Sdn Bhd to process the cane from the two plantations. 1970s In 1972... The Milestones of PPB Group Berhad PPB Group The Milestones of PPB was listed on the Stock Exchange of Malaysia and Singapore, now known as Bursa Malaysia Securities Berhad (“Bursa Securities”) in May 1972, with an issued share capital of RM15.0 million. 1973 PPB achieved its first pre-tax profit of RM2.0 million for the financial year ended 30 September 1974 on turnover of RM9.3 million. 1976 1979 PPB embarked on a diversification PPB further diversified into property programme so that its performance development, tin mining and rubber would not be dependent on the vagaries plantations through the acquisition of one crop. During the year, PPB of Mineral Securities Malaysia Berhad, acquired Malayan Sugar Manufacturing subsequently known as Minsec Co Berhad (“MSM”), which operates Properties Berhad (“Minsec”). Malaysia’s largest sugar refinery at Seberang Prai, Province Wellesley, Minsec’s principal asset was its holding Penang. As a result of the merger, in public-listed Rahman Hydraulic Tin PPB became a vertically integrated Berhad (“RHTB”). PPB’s indirect interest organisation engaged in all aspects of in RHTB was initially 41.8%. RHTB later the sugar industry from cane growing to became a 55% direct subsidiary of PPB. sugar milling, refining and distribution. On 5 October 1993, PPB announced the Through MSM, PPB also became disposal on the open market of its entire indirectly involved in the hotel industry, equity interest in RHTB. manufacture of poly bags and bulking operations. 1980s The Milestones of PPB Group Berhad PPB Group The Milestones of 1980 PPB acquired the entire issued share capital of South Island Mining Company Sdn Bhd (“SIMCO”), which operated iron ore mining leases and a rubber plantation in Bedong, Kedah. 1982 Tai Yan Realty Sdn Bhd (“Tai Yan”), which is now known as PPB Hartabina Sdn Bhd (“PPBH”), became a wholly-owned subsidiary of PPB. Tai Yan was the developer of Taman Segar in Cheras, Kuala Lumpur. 1983 PPB acquired a 34% equity interest in Shaw Brothers (M) Sdn Bhd (“SBM”), which then owned over 90 individual properties throughout Malaysia. 1986 In line with the Group’s property interests, PPB ventured into retail operations by taking a 55% stake in Chujitsu Superstore Sdn Bhd (Chujitsu), a joint venture with Tosin Co Ltd and Chujitsuya Co Ltd of Japan. With the PPB Group’s involvement in the trading and refining of edible oils, PPB first ventured into oil palm cultivation in Sarawak by forming Saremas Sdn Bhd, a joint venture with Sarako Sdn Bhd, to establish an oil palm plantation on 9,900 hectares in the Suai District of the Fourth Division. 1987 PPB made takeover offers for Federal Flour Mills Berhad (“FFM”), which is now known as FFM Berhad, and Rasa Sayang Beach Hotels (Pg) Berhad (“RSBH”), and FFM and RSBH became 50.86% and 95.13% (subsequently increased to 100%) subsidiaries of PPB, respectively. The takeover of FFM enabled PPB to diversify into flour and animal feed milling, edible oils processing and commodities trading. FFM has since diversified further into livestock farming as a synergistic progression from wheat flour milling and subsequently to consumer products distribution, further food processing and industrial bakery. PPB and the Sabah Land Development Board established Sapi Plantations Sdn Bhd to undertake a fully integrated oil palm project over 14,200 hectares near Sandakan, Sabah. The Sapi Plantations project marked the Group’s entry into Sabah. The following year, PPB established Reka Halus Sdn Bhd, a 70:30 joint venture with Ladang Sabah Sdn Bhd to develop 5,400 hectares of oil palm estate near Sapi. This marked another step towards oil palm cultivation becoming a core business of the PPB Group. 1989 Recognising the potential of the entertainment industry, PPB entered into a joint venture with Golden Harvest PPB was delisted from the Stock (International) Ltd of Hong Kong to establish Golden Exchange of Singapore, (SES), but Communications (M) Sdn Bhd (“GCM”), now known as remained listed on the Kuala Lumpur Golden Screen Cinemas Sdn Bhd (“GSC”), to operate a Stock Exchange (“KLSE”), now known chain of cinemas leased mainly from SBM. as Bursa Securities. 1990s In 1990... The Milestones of PPB Group Berhad PPB Group The Milestones of PPB acquired the entire issued share capital of Borneo Filem Organisation Sdn Bhd (“BFO”). BFO changed its name to Cathay Cinemas Sdn Bhd and is now known as PPB Leisure Holdings Sdn Bhd, which owned and operated a chain of cinemas in Malaysia known as Cathay Organisation. 1991 PPB announced the proposed merger of Shangri-La Hotels (Malaysia) Berhad (“SHMB”) (formerly RSBH) and UBN Holdings Sdn Bhd and the proposed listing of SHMB on the Main Board of the KLSE, now known as Bursa Securities. 1993 PPB acquired a 40% stake in Haskitime Corporation Sdn Bhd, and its name was subsequently changed to ChemQuest Sdn Bhd (“ChemQuest”). In 1999, PPB increased its stake in ChemQuest to 55%. The ChemQuest Group is now engaged in environmental engineering, utilities, waste management, trading of chemicals and contract manufacturing. 1990s The Milestones of PPB Group Berhad PPB Group The Milestones of 1994 1995 PPB entered into joint ventures taking 70% PPB expanded its oil palm operations to stakes in Segarmas Plantations Sdn Bhd and Indonesia taking a 70% stake in PT Tidar Sungkai Suburmas Plantations Sdn Bhd to develop 4,860 Sawit (“TSS”), to operate an oil palm plantation and 4,591 hectares of oil palm plantations in on about 8,000 hectares of land in Sumatra. Sarawak, respectively. PPB’s 70% stake was subsequently transferred to PPB Oil Palms Berhad. 1996 To restructure its retail operations, PPB entered into an agreement on 7 March 1996 with Dutch retailer Koninklijke Ahold NV to operate retail-related businesses under a new joint venture company called RA-PPB (Tops) Retail Sdn Bhd (“Tops”). PPB held a 40% stake in the joint venture. The company was subsequently divested and PPB exited the retail business in 2000. PPB restructured its cinema and leisure operations by injecting GCM into Cathay Cinemas Sdn Bhd, which is now known as PPB Leisure Holdings Sdn Bhd (“PPB Leisure”). PPB Leisure has since diversified into software development and maintenance, information technology services and solutions and has expanded its cinema business to Vietnam and Cambodia. 1997 The oil palm investments of PPB were merged under PPB Oil Palms Berhad (“PPBOP”), with PPB retaining a 58% stake. PPBOP was listed on the then Main Board of the KLSE on 12 August 1997. 1999 PPB disposed of its entire 26.09% stake in SHMB in October 1999 in exchange for 39.674 million new ordinary shares in Shangri-La Asia Limited (“SAL”) pursuant to a Voluntary Takeover Offer by SAL for SHMB shares. 2000s Starting in 2000... The Milestones of PPB Group Berhad PPB Group The Milestones of To better reflect its diversified activities, Perlis Plantations Berhad changed its name to PPB Group Berhad on 8 May 2000. 2004 On 14 October 2004, FFM was delisted from the Official List of Bursa Malaysia following the privatisation of FFM pursuant to a scheme of arrangement under Section 176 of the Companies Act 1965. FFM became a wholly-owned subsidiary of PPB. 2006 The Group received an offer from Wilmar International Limited (“Wilmar”) on 14 December 2006 to acquire from FFM its 65.8% and 28% equity interests in PGEO Group Sdn Bhd and Kuok Oils & Grains Pte Ltd respectively, in exchange for new shares in Wilmar. PPBOP, then a 55.6%-subsidiary of PPB, received a Notice of Conditional Takeover Offer from Wilmar to acquire all the PPBOP shares not owned by Wilmar on the basis of 2.3 Wilmar shares for every PPBOP share held.