F&NHBLeveragingIn transforming Group on hasthe F&NHB benefittedcombined for a strengths fromsustainable our geographical of future,our soft we drinks F&N MAGNOLIA diversityandstart dairy with overbusiness optimising the past in Malaysia; our couple resources of we years, now productivity havewhich the affirmed nation's F&N FRUIT TREE thewidestand vital cost route-to-market role effectiveness of Exports toin and thebuild widest Group's a more manufacturing growth competitive strategy. Therefore,footprintorganisation. among the Group food will& beverage be prioritising producers,OISHI on capacity which anddelivered capability greater building operational to fuel ourefficiency Exports in businessdistribution, for long-termlogisticsImprovement20 and growth. warehousing in our cost structure for the Group. and overall functionalWELL-LOVED efficiency and effectiveness from various FRASERBRANDS & NEAVE HOLDINGStransformation BHD initiatives have delivered sustainable (4205-V)financial benefits for the Group. HALAL NETWORK DECENTRALISATION F&NHB supports the development F&NHB's capital expenditure of MalaysiaCAP as a JUNJUNG global commercial® TRUSTED BY projectsand halal support hub. ourThis strategic year, the Group GENERATIONS OVER directionhas further to decentralise expanded our our export manufacturingmarket network operations. in the global We Muslimaim to optimise market where our route our halal 134 years to the extensive market that certification carried added leverage. we serve which, will provide us greater speed-to-market, cost savings in logistics and warehousing, as well as less carbon emission. OUTLETS ACROSS MALAYSIA 100PLUS 80,000 OUTLETS ACROSS THAILAND 153,000 100PLUS F&N ICE MOUNTAIN F&N SEASONS FARMHOUSE F&N NUTRISOY OISHI TEAPOT F&N CONDENSED & EVAPORATED MILK CARNATION® BEAR BRAND MARKET LEADING POSITIONSENHANCING IN EFFICIENCIES RESPECTIVE TRANSFORMATIONCATEGORIESWe invest in the best technologies to increase our manufacturing IN ACTIONefficiencies, and are increasing our production capacity to create OPTIMISINGgreater THE cost efficiency VALUE through CHAIN BEAR BRAND economies of scale, in-sourcing production and shortening our route to the different markets we serve. Annual Report 2017 7 MARKET NEW PRODUCTS IN FY2017 FUELLINGCAPTURINGCOST EXPORTVALUEOPTIMISATION ALONG THE GROWTHSUPPLY CHAIN FACTORY REDUCING COSTS We look continuously to capture cost savings throughout our operations, from our manufacturing to our logistics and distribution. This includes streamlining and simplifying our processes while optimising space and resources. PRODUCTION WAREHOUSE HARMONISATION Meanwhile, our route-to-market has been transformed via a distributor harmonisation programme, merging the distribution CAPACITYnetworks AND CAPABILITY of our soft drinksEXPANSION and dairy products into one. This creates a triple win F&NHB isof gearing better efficienciesfor growth with for us, RM greater 500 million volume investedof in trade capital for expenditure our distributors, projects and over greater a three-yearease period of doing to businesselevate our for production our customers. capacity and cost competitiveness. Going forward, the Group will place greater emphasis on innovation and customising our product and packaging to cater to specific needs of our diverse local and international customers. F&NHBLeveragingIn transforming Group on hasthe F&NHB benefittedcombined for a strengths fromsustainable our geographical of future,our soft we drinks F&N MAGNOLIA diversityandstarted dairy with overbusiness optimising the past in Malaysia; couple our resources of we years, now havewhichproductivity the affirmed nation's F&N FRUIT TREE thewidestand vital cost route-to-market role effectiveness of Exports toin and thebuild widest Group's a more manufacturing growth competitive strategy. Therefore,footprintorganisation. among the Group food will& beverage be prioritising producers,OISHI on capacity which anddelivered capability greater building operational to fuel ourefficiency Exports in businessdistribution, for long-termlogisticsImprovement20 and growth. warehousing in our cost structure for the Group. and overall functionalWELL-LOVED efficiency and effectiveness from various BRANDS transformation initiatives have delivered sustainable financial benefits for the Group. HALAL NETWORK DECENTRALISATION F&NHB supports the development F&NHB's capital expenditure of MalaysiaCAP as a JUNJUNG global commercial® TRUSTED BY projectsand halal support hub. ourThis strategic year, the Group GENERATIONS OVER directionhas further to decentralise expanded our our export manufacturingmarket network operations. in the global We Muslimaim to optimise market where our route our halal 134 years to the extensive market that certification carried added leverage. we serve which, will provide us greater speed-to-market, cost savings in logistics and warehousing, as well as less carbon emission. OUTLETS ACROSS MALAYSIA 100PLUS 80,000 OUTLETS ACROSS THAILAND 153,000 100PLUS F&N ICE MOUNTAIN F&N SEASONS FARMHOUSE F&N NUTRISOY OISHI TEAPOT F&N CONDENSED & EVAPORATED MILK CARNATION® BEAR BRAND MARKET LEADING POSITIONSENHANCING IN EFFICIENCIES RESPECTIVE CATEGORIESWe invest in the best technologies to increase our manufacturing efficiencies, and are increasing our production capacity to create greater cost efficiency through BEAR BRAND economies of scale, in-sourcing production and shortening our route to the different markets we serve. 7 MARKET NEW PRODUCTS IN FY2017 FUELLINGCAPTURING EXPORTVALUE ALONG THE GROWTHSUPPLY CHAIN FACTORY PRODUCTION WAREHOUSE HARMONISATION Meanwhile, our route-to-market has been transformed via a distributor harmonisation programme, merging the distribution CAPACITYnetworks AND CAPABILITY of our soft drinksEXPANSION and dairy products into one. This creates a triple win F&NHB isof gearing better efficienciesfor growth with for us, RM greater 500 million volume investedof in trade capital for expenditure our distributors, projects and over greater a three-yearease period of doing to businesselevate our for production our customers. capacity and cost competitiveness. Going forward, the Group will place greater emphasis on innovation and customising our product and packaging to cater to specific needs of our diverse local and international customers. F&NHBLeveraging Group on hasthe benefittedcombined strengths from our geographical of our soft drinks F&N MAGNOLIA diversityand dairy overbusiness the past in Malaysia; couple of we years, now havewhich the affirmed nation's F&N FRUIT TREE thewidest vital route-to-market role of Exports in and the widest Group's manufacturing growth strategy. Therefore,footprint among the Group food willand be beverage prioritising producers,OISHI on capacity which anddelivered capability greater building operational to fuel ourefficiency Exports in businessdistribution, for long-termlogistics20 and growth. warehousing for the Group. WELL-LOVED BRANDS HALAL NETWORK DECENTRALISATION F&NHB supports the development F&NHB's capital expenditure of MalaysiaCAP as a JUNJUNG global commercial® TRUSTED BY projectsand halal support hub. ourThis strategic year, the Group GENERATIONS OVER directionhas further to decentralise expanded our our export manufacturingmarket network operations. in the global We Muslimaim to optimise market where our route our halal 134 years to the extensive market that certification carried added leverage. we serve which, will provide us greater speed-to-market, cost savings in logistics and warehousing, as well as less carbon emission. OUTLETS ACROSS MALAYSIA 100PLUS 80,000 OUTLETS ACROSS THAILAND 153,000 100PLUS F&N ICE MOUNTAIN F&N SEASONS FARMHOUSE F&N NUTRISOY OISHI TEAPOT F&N CONDENSED & EVAPORATED MILK CARNATION® BEAR BRAND MARKET LEADING POSITIONS IN RESPECTIVE CATEGORIES BEAR BRAND 7 MARKET NEW PRODUCTS IN FY2017 FUELLING EXPORT GROWTH CAPACITY AND CAPABILITY EXPANSION F&NHB is gearing for growth with RM 500 million invested in capital expenditure projects over a three-year period to elevate our production capacity and cost competitiveness. Going forward, the Group will place greater emphasis on innovation and customising our product and packaging to cater to specific needs of our diverse local and international customers. F&NHB Group has benefitted from our geographical F&N MAGNOLIA diversity over the past couple of years, which affirmed F&N FRUIT TREE the vital role of Exports in the Group's growth strategy. Therefore, the Group will be prioritisingOISHI on capacity and capability building to fuel our Exports business for long-term20 growth. WELL-LOVED BRANDS HALAL NETWORK F&NHB supports the development of MalaysiaCAP as a JUNJUNG global commercial® TRUSTED BY and halal hub. This year, the Group GENERATIONS OVER has further expanded our export market network in the global 134 years Muslim market where our halal certification carried added leverage. OUTLETS ACROSS MALAYSIA 100PLUS 80,000 OUTLETS ACROSS THAILAND 153,000 100PLUS F&N ICE MOUNTAIN F&N SEASONS FARMHOUSE F&N NUTRISOY OISHI TEAPOT F&N CONDENSED & EVAPORATED MILK CARNATION® BEAR BRAND MARKET LEADING POSITIONS IN RESPECTIVE CATEGORIES BEAR BRAND 7 NEW PRODUCTS IN FY2017 BORNEO SPRINGS F&N CANNED MILK F&N NUTRISOY SUNKIST IDEAL® RANGER OUR BRAND PORTFOLIO F&N FUN FLAVOURS GOLD COIN F&N SEASONS CARNATION® EST COLA F&N MAGNOLIA F&N FRUIT TREE 20 OISHI WELL-LOVED BRANDS CAP JUNJUNG® TRUSTED BY GENERATIONS OVER 134 years OUTLETS ACROSS MALAYSIA 100PLUS 80,000 OUTLETS ACROSS THAILAND 153,000 100PLUS F&N ICE MOUNTAIN F&N SEASONS