Of TDM BERHAD’S Annual Report 2019 Is Also Available on Our Website
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STRENGTHENING FOCUS, ACHIEVING TRUE POTENTIAL ANNUAL REPORT 2019 STRENGTHENING FOCUS, TH ACHIEVING TRUE POTENTIAL 55 TDM's sustainability effort is derived from the ability to strengthen our focus during challenging ANNUAL times. It is about making critical decisions and improving decision-making for better outcomes GENERAL through the use of robust strategic frameworks. To us, the ever changing macroeconomic challenges MEETING are an opportunity for TDM to make organisational improvements - in our people, our processes, the (AGM) OF technology that we leverage on and the branding of TDM. TDM BERHAD We recognise our ability as a leading player in Broadcast Venue the oil palm plantation industry and demonstrate Tricor Leadership Room continuous growth in our healthcare business. We believe the unrelenting efforts in optimising our Unit 32-01, Level 32, Tower A strength will lead TDM to the path of achieving its Vertical Business Suite, Avenue 3 true potential. Bangsar South No. 8 Jalan Kerinchi 59200 Kuala Lumpur. VISION CORE VALUES Date & Time To be the iconic corporation Monday, 27 July 2020 of the East Coast that creates GOOD 11.00 a.m. GOVERNANCE sustainable values for our stakeholders. TEAM WORK MISSION To be a model corporate citizen in PEOPLE TDM BERHAD ANNUAL REPORT CENTRIC 2019 DIGITAL VERSION Terengganu; • To create sustainable value for our Follow the steps below to scan the shareholders. QR Code reader in 3 easy steps INNOVATIVE • To improve the well being of our Download the “QR CodeReader” on App Store or stakeholders while protecting the Google Play. environment. • To deliver quality products & ENVIRONMENTAL Run the QR Code Reader app FRIENDLY and point your camera to the services above expectation for QR Code. our customers. • To widen our regional presence. Access the soft copy of the SHARIAH • To stimulate human capital Annual Report. COMPLIANCY development. The soft copy version of TDM BERHAD’s Annual Report 2019 is also available on our website. www.tdmberhad.com.my ANNUAL REPORT 2019 CONTENTS pages pages ABOUT TDM GOVERNANCE 2 • Vision, Mission & Core Values 84 • Policies 84-90 - • Who We Are 2-3 - • Corporate Governance Overview 91-107 6 • Corporate Structure 4 122 Statement • Corporate Information 5 • Audit Committee Report 108-114 • Investor Relations 6 • Statement on Risk Management and 115-120 Internal Control • Additional Compliance Statement 121 • Responsibility Statement by the 122 pages Board of Directors HIGHLIGHTS 7 • 2019 Key Highlights 7 - • Financial Highlights 8-11 15 • Financial Calendar 12 pages • Calendar of Events 13-15 FINANCIAL STATEMENTS 123 • Directors’ Report 124-129 - • Statement by Directors 130 261 • Statutory Declaration 130 pages • Independent Auditors’ Report 131-134 LEADERSHIP PERSPECTIVE & PROFILES • Statements of Comprehensive Income 135-136 • Management Discussion and Analysis 16-30 16 • Statements of Financial Position 137-139 • Board of Directors’ Profile 31-37 - • Statements of Changes in Equity 140-142 • Key Senior Management Profile 38-41 • Statements of Cash Flows 143-145 43 • Management Team 42-43 • Notes to the Financial Statements 146-261 pages pages SUSTAINABILITY STATEMENT ACCOUNTABILITY 44 • Sustainability Overview 44-49 262 • Statistics of Shareholdings 262-263 - • Sustainability Matters 50-57 - • Group Plantation Hectarage 264 83 • Social Sustainability: Creating Shared 58-63 282 Statement Value for Community Development • 5-Year Group Plantation Statistics 265 • Sustainability of the Planet 64-75 • 5-Year Group Healthcare Statistics 266 • Sustainability at the Workplace: Our 76-83 • List of Properties 267-271 People, Our Greatest Asset • Group Directory 272-273 • Notice of 55th Annual General Meeting 274-278 • Statement Accompanying Notice of 279 Annual General Meeting • Information Guide to Shareholders 280-282 • Proxy Form TDM BERHAD 2 ABOUT TDM HIGHLIGHTS LEADERSHIP PERSPECTIVE & PROFILES WHO WE ARE TDM Berhad 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 2004, TDM has grown into a leading player in the oil palm plantation and healthcare sectors. Oil Palm Palm Oil 42,022 Ha 16 Estates 3 Mills Biogas of Planted Oil Palm Bio-Composting 3 Plants 1 Plant PLANTATION DIVISION TDM develops and manages 16 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, Kemaman and Nanga Pinoh. In addition, the Group operates a total of three Bio-Composting plants and a Biogas plant located in both Malaysia and Indonesia. Currently, the Group has a total of 42,022 Ha of planted oil palm land at its plantations in Terengganu (31,295 Ha) and Kalimantan (10,727 Ha). TDM estates are at the following locations: • Sungai Tong Complex, Terengganu Estates: 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 Certified RSPO & MSPO TDM’s • Nanga Pinoh, Kalimantan Barat North 1, North 2, South 1 & estate in Terengganu South 2. Our estates and mills in Terengganu are 100% Roundtable on Sustainable Palm Oil (RSPO) and Malaysian Sustainable Palm Oil (MSPO) certified. ANNUAL REPORT 2019 SUSTAINABILITY STATEMENT GOVERNANCE FINANCIAL STATEMENTS ACCOUNTABILITY 3 WHO WE ARE 4 407 Specialist Hospitals Beds HEALTHCARE DIVISION The Group’s Healthcare Division, Kumpulan Medic Iman Sdn. Bhd. (KMI), manages four specialist hospitals, which offer affordable healthcare services to the community. Hospitals under 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. Kuala Terengganu Specialist Hospital, one of TDM purpose-built hospital in the East Coast TDM BERHAD 4 ABOUT TDM HIGHLIGHTS LEADERSHIP PERSPECTIVE & PROFILES CORPORATE STRUCTURE AS AT 12 JUNE 2020 (6265-P) PLANTATION 100% • TDM Plantation Sdn. Bhd. 100% • Kumpulan Ladang-Ladang Trengganu Sdn. Bhd. 100% • TDM Trading Sdn. Bhd. 100% • TDM Capital Sdn. Bhd. 100% • **Kemaman Capital Sdn. Bhd. 93.75% • PT. Rafi Kamajaya Abadi 95% • PT. Sawit Rezki Abadi 95% • *PT. Rafi Sawit Lestari HEALTHCARE 99.28% • Kumpulan Medic Iman Sdn. Bhd. 100% • TDMC Hospital Sdn. Bhd. 92.33% • Kuantan Medical Centre Sdn. Bhd. 100% • Kuala Terengganu Specialist Hospital Sdn. Bhd. 99.29% • Kelana Jaya Medical Centre Sdn. Bhd. 90.49% • ** Kumpulan Mediiman Sdn. Bhd. OTHER ACTIVITIES 70% • **Indah Sari Travel & Tours Sdn. Bhd. 51% • **TD Gabongan Sdn. Bhd. * In the process of winding up ** Dormant ANNUAL REPORT 2019 SUSTAINABILITY STATEMENT GOVERNANCE FINANCIAL STATEMENTS ACCOUNTABILITY 5 CORPORATE INFORMATION BOARD OF DIRECTORS YM Raja Dato’ Haji Idris YB Dato’ Haji Zainal Abidin Haji Mazli Zakuan Haji Burhanuddin Raja Kamarudin bin Hussin bin Mohd Noor Hilmi bin Mohamed @ Non-Independent & Non-Independent & Non-Independent & Harun Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Independent & Non-Executive Director Mohd Kamaruzaman Haji Najman Haji Azlan bin A Wahab bin Kamaruddin bin Md Alifiah Independent & Independent & Independent & Non-Executive Director Non-Executive Director Non-Executive Director AUDIT COMMITTEE COMPANY SECRETARY SHARE REGISTRAR • Haji Azlan bin Md Alifiah (Chairman) Wan Haslinda Wan Yusoff Tricor Investor & Issuing House Services Sdn. Bhd. • Haji Burhanuddin Hilmi bin Mohamed @ (MAICSA No. 7055478) Unit 32-01, Level 32 Harun SSM PC No. 202008002798 Tower A, Vertical Business Suite, Avenue 3 • Haji Mazli Zakuan bin Mohd Noor Bangsar South • Haji Najman bin Kamaruddin AUDITORS No. 8, Jalan Kerinchi • Mohd Kamaruzaman bin A Wahab • Messrs. Ernst & Young PLT 59200 Kuala Lumpur • Messrs. Hendrawinata Hanny Erwin & Telephone No : +603 2783 9299 NOMINATION AND REMUNERATION Sumargo (Kreston International) Facsimile No : +603 2783 9222 COMMITTEE Email : [email protected] • Haji Mazli Zakuan bin Mohd Noor PRINCIPAL BANKERS (Chairman) • Bank Islam Malaysia Berhad STOCK EXCHANGE LISTING • Haji Najman bin Kamaruddin • Maybank Islamic Berhad Main Market of Bursa Malaysia • Haji Azlan bin Md Alifiah • OCBC Al-Amin Bank Berhad Securities Berhad • Haji Burhanuddin Hilmi bin Mohamed @ • CIMB Bank Berhad Harun • RHB Islamic Bank Berhad STOCK NAME • Mohd Kamaruzaman bin A Wahab • Bank Pertanian Malaysia Berhad TDM (Agrobank) BOARD RISK & COMPLIANCE COMMITTEE • AmBank Islamic Berhad STOCK CODE • Haji Najman bin Kamaruddin (Chairman) 2054 • Mohd Kamaruzaman bin A Wahab SOLICITORS • Haji Mazli Zakuan bin Mohd Noor • Messrs. Hutabarat Halim & Rekan PLANTATION DIVISION • Haji Burhanuddin Hilmi bin Mohamed @ • Messrs. Edlin Ghazaly & Associates Level 3, Bangunan UMNO Terengganu Harun • Messrs. Azman, Wan Helmi & Associates Lot 3224, Jalan Masjid Abidin • Haji Azlan bin Md Alifiah • Messrs. Fariz Halim & Co 20100 Kuala Terengganu • YB Dato’