Of British American Tobacco (Malaysia) Berhad Will Be Held At
Total Page:16
File Type:pdf, Size:1020Kb
nd 5219 2012ANNUAL REPORT British American Tobacco (Malaysia) Berhad British American Tobacco ANNUAL GENERAL MEETING (AGM) OF BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD will be held at Kristal Ballroom, Hilton Petaling Jaya, No. 2, Jalan Barat, 46200 Petaling Jaya, British American Tobacco (Malaysia) Berhad (4372-M) Virginia Park, Jalan Universiti, 46200 Petaling Jaya, Selangor, Malaysia Selangor Darul Ehsan Tel: +60 (3)7956 6899 / 7491 7100 • Fax: +60 (3)7955 8416 on Wednesday, 17 April 2013 at 11.00 a.m. www.batmalaysia.com (4372-M) ANNUAL REPORT AGM Helpdesk: Ms. Quah Khian Khoon Tel: +60 (3)7491 7418 Fax: +60 (3)7491 3772 2012 E-mail: [email protected] In 2012, British American Tobacco Malaysia placed its foot solidly into a historical territory rarely reached by most organisations. It celebrated its 100 years of continuous operations in Malaysia. From 1912 to 2012 the Company has grown together with the nation into one that is involved in the full spectrum of the tobacco industry, with an unrivalled portfolio of highly successful international brands, and is ranked amongst the top 25 public listed entities in the country. Throughout these years, British American Tobacco Malaysia has strived to create value for all its stakeholders, and most importantly its shareholders. This was achieved through exemplary leadership that has led to a century of growth supported by the efficient productivity of a winning organisation that has conducted the business in a responsible manner. 1912 Establishment of British American Tobacco Co. (Straits) 1961 Limited to distribute British American Tobacco cigarettes in Official opening of the Malaysian Malaya, Singapore and Borneo. Tobacco Company Berhad (MTC) British American Tobacco Co. manufacturing facility in Sungai (Straits) Limited establish its first Besi, Kuala Lumpur officiated by office at 9 MacArthur Street in the first Prime Minister of Malaysia Kuala Lumpur. Tunku Abdul Rahman. 1999 Merger of Malaysian Tobacco Company Berhad (MTC) and Rothmans of Pall Mall (Malaysia) Berhad on 3rd November 1999 to form British American Tobacco Malaysia. 2012 Centennial celebration graced by H.R.H The Sultan of Selangor. 1926 1961 British American British American Tobacco’s first Tobacco was listed on manufacturing facility in the Malaysian Stock Malaya was established Exchange on 27th in 1926. The Company October 1961, with took over a building 6,375,000 of ordinary which was previously shares issued. used as a depot by Fraser & Neave to set up 1962 its first manufacturing facility in the country. The first Chairman Official opening of British American of Rothmans Tobacco in the United manufacturing facility Kingdom, James ‘Buck’ in Petaling Jaya, Duke. Selangor officiated by the first Prime Minister of Malaysia Tunku Abdul Rahman. 1957 Malaya declares independence on 31st August! 2012 British American Tobacco Malaysia employees celebrate the Company’s 100 year presence in the country, cementing its leadership in the Malaysian tobacco industry. nd BRITISH AMERICAN TOBACCO 52 (MALAYSIA) BERHAD CAN TRACE ITS HERITAGE AS FAR BACK AS ANNUAL GENERAL MEETING 1912 WITH THE ESTABLISHMENT (AGM) OF BRITISH AMERICAN OF BRITISH AMERICAN TOBACCO CO. (STRAITS) LIMITED. FROM ITS TOBACCO (MALAYSIA) BERHAD HUMBLE BEGINNING, BRITISH AMERICAN TOBACCO MALAYSIA will be held at HAS COME A LONG WAY TO BECOME A COMPANY WHICH IS INVOLVED IN THE FULL Kristal Ballroom, SPECTRUM OF THE TOBACCO Hilton Petaling Jaya, INDUSTRY, FROM LEAF BUYING No. 2, Jalan Barat, AND PROCESSING TO 46200 Petaling Jaya, MANUFACTURING, MARKETING Selangor Darul Ehsan AND DISTRIBUTION. Today, British American Tobacco Malaysia on Wednesday, 17 April 2013 at 11.00 a.m. manufactures and markets an unrivalled portfolio of highly successful international brands, designed to meet diverse consumer preferences. In 2012, British American Tobacco Malaysia celebrated its 100 years in Malaysia. More importantly, what is significant throughout these 100 years is the effort that British American Tobacco Malaysia has demonstrated to being a corporate citizen that adds value to the communities in which it operates. AGM Helpdesk: Ms. Quah Khian Khoon Tel: +60 (3)7491 7418 Fax: +60 (3)7491 3772 E-mail: [email protected] strong foundation for tomorrow’s business growth. LEADERSHIP GROWTH PRODUCTIVITY WINNING RESPONSIBILITY ORGANISATION OUR VISION We share British American Tobacco p.l.c’s vision to do as a company. We take a long-term view, focusing on achieve leadership of the global tobacco industry in the quality of our business and how we work. As a result, order to create long-term shareholder value. We believe qualitatively, we seek to be recognised as an industry that delivering growth is key to achieving this vision to leader and to be the partner of first choice for our valued lead in the tobacco industry. However, leadership is stakeholders. not an end in itself. A company that leads its industry and is seen to have a sustainable business will also be We will do this by continuing to demonstrate that we are valued more highly. a responsible tobacco company with a sustainable business and outstanding people. Our strategy is designed to We define leadership in both a quantitative and deliver our vision and as a result, build shareholder value. qualitative sense. Quantitively, we seek volume It is based on growth, funded by productivity and delivered leadership among our competitors and in the longer by a winning organisation that acts responsibly at all term, value leadership. However, quantitative measures times. do not in themselves address all the things we must Our vision Results at a glance CONTENTS Chairman’s letter Management discussion and analysis Corporate profile NTRODUCTION I British American Tobacco Malaysia in the news NCE Awards and achievements MA 2012 Corporate events highlights Corporate information ERFOR P Corporate structure Profile of Directors Profile of Top Team members P Standards of Business Conduct Statement on Corporate Governance DERSHI A Audit Committee Report E L Statement on Risk Management and Internal Control NCE Driving towards sustainable growth A Enhancing operational performance and deploying ERN resources effectively to fuel business growth V GO TH W ITY V GRO PRODUCTI 1 2 4 7 17 18 19 20 22 22 24 30 33 34 59 64 72 76 Results revenue profit before tax at a glance 4,365 1,054 (RM million) (RM million) Group financial year ended 31 December 2012 Form of Proxy Administrative details for British American Tobacco Malaysia Fifty-second Annual General Meeting Notice of Annual General Meeting Corporate directory Particulars of properties Analysis of shareholdings Notes to the Financial Statements Summary of Significant Accounting Policies TION Statements of Cash Flows MA Company Statement of Changes in Equity Consolidated Statement of Changes in Equity Balance Sheets Statements of Comprehensive Income OTHER INFOR Income Statements Independent Auditors’ Report Statutory Declaration Statement by Directors Directors’ Report Attracting, developing and nurturing talent to fuel our growth agenda ENTS M Driving sustainable growth responsibly TE A TION A L ST NIS A ILITY B GA NCI R A O ONSI P G ES R ND FIN A WINNIN ORTS P RE 81 114 121 127 127 128 130 131 132 133 135 137 138 153 199 202 203 204 206 • net profit shareholders’ fund net returns on net earnings net dividend 798 485 shareholders’ fund per share per share (RM million) (RM million) 165 279 272 (%) (Sen) (Sen) pg 4 BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD annual report 2012 Dear Shareholders, Sustainability may be all the rage these days, but truth be known it has been around for a while, just that it is now better articulated. In the fast moving world of business, it is a critical capability to be able to adapt and evolve to meet the changing and increasing demands of both consumers and stakeholders. As Charles Darwin once said, “It is not the strongest of the species that survives nor the most intelligent that survives. It is the one that is the most adaptable to change.” In the world, Japan has one of the highest numbers of companies over a hundred years old. I believe part of the reason behind this is a deep rooted value set, focused on the consumer and consideration for the environment in which they operate. It is no coincidence that these are the very same sustainable business practices at the heart of our organisation. Datuk Mohamad Salim bin Fateh Din Chairman’s Chairman letter pg 5 Overview BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD annual report 2012 Performance We fully recognise that whilst aggressively competing in The domestic volume growth (+0.24 percent), albeit the marketplace, there is a need to balance the associated modest, was the first domestic volume growth in 10 years. social, environmental and economic considerations, thus Source of this growth is a 2012 market share gain of building sustainable value for our employees, shareholders 1.6 percentage points, largely attributed to the fantastic and our other stakeholders. performance of DUNHILL which achieved a record market share of 47.3 percent. Essentially, almost one in every two Leadership In 2012, celebrating its 100 years anniversary, British Malaysian smokers now chooses DUNHILL. The overall American Tobacco Malaysia joins an elite group of market has remained relatively constant due to the centenarian companies in Malaysia. With 100 years of increased enforcement on illicit cigarettes trade by Government agencies, together with a stable excise continuous operations in the country, British American environment, supporting the fight against illegal cigarettes. Tobacco Malaysia has grown into the nation’s leading tobacco company and its brand DUNHILL is the number Governance Substantial growth in export contract manufacturing one choice for consumers. It is a testament of the strength volume (+17 percent cigarettes, +66 percent semi-finished of our business that we have transitioned the 100 year goods) was also experienced in 2012. In addition to the mark, and have done so with pride and a remarkable set volume growth, the earnings from the export contract of 2012 results.