B O U S T E Ad H O L D in G S B Er

196001000193 (3871-H) BOUSTEAD HOLDINGS BERHAD ANNUAL REPORT 2019 WHAT’S INSIDE PG.40 CHAIRMAN’S STATEMENT <ul style="display: flex;"><li style="flex:1">Annual Report 2019 </li><li style="flex:1">Sustainability Report 2019 </li></ul>Cover Rationale We remain steadfast and resilient as we face challenges in the current market landscape. With hard work, determination and the right mindset, we will continue to strengthen and persevere in times of adversity to emerge stronger. By working hard on improving efficiencies, building on organic growth and unlocking opportunities for new investments, we will continue to stay the course and deliver sustainable results and value from our core business areas. Please scan the QR code for 2019 Annual Report Please scan the QR code for 2019 Sustainability Report ABOUT BOUSTEAD GROUP 02 Overview of Boustead Holdings Berhad 04 What We Do Annual 58th General Meeting 06 Facts at a Glance 07 Financial Calendar 08 Five-Year Financial Highlights 10 Corporate Information Refer to pages 286 to 296 for Annual General Meeting Information Mutiara 5, Ground Floor Royale Chulan Damansara LEADERSHIP WHERE 2, Jalan PJU 7/3, Mutiara Damansara 47810 Petaling Jaya, Selangor 12 Board of Directors 14 Board at a Glance 15 Profile of Directors 22 July 2020 WHEN TIME 29 Heads of Subsidiary Companies 32 Heads of Departments 34 Profile of Heads of Departments 40 Chairman’s Statement 9.30 a.m. PG.68 MANAGEMENT DISCUSSION AND ANALYSIS HEAVY INDUSTRIES DIVISION 46 Managing Director’s Review 52 Plantation Division PG.72 58 Property Division 62 Pharmaceutical Division 68 Heavy Industries Division 72 Finance & Investment Division 76 Trading & Industrial Division PG.58 FINANCE & INVESTMENT DIVISION PROPERTY DIVISION PG.76 <ul style="display: flex;"><li style="flex:1">PG.62 </li><li style="flex:1">PG.52 </li></ul>TRADING & INDUSTRIAL DIVISION PLANTATION DIVISION PHARMACEUTICAL DIVISION FINANCIAL STATEMENTS 111 Financial Statements SHAREHOLDERS’ INFORMATION 262 Boustead Group 270 Recurrent Related Party Transactions 273 Top 30 Properties of the Group 276 Additional Disclosures 278 Group Oil Palm Agricultural Statistics 279 Plantation Area Statement 280 Location of Group Plantations 282 Shareholding Statistics GOVERNANCE 80 Audit Committee Report 284 Statement of Directors’ Interests 285 Dividend Policy 86 Corporate Governance Overview Statement 102 Statement on Risk Management 286 Notice of Annual General Meeting 291 Administrative Notes and Internal Control 107 Risk Committee Report 110 Directors’ Responsibility •Proxy Form Statement 01 01 BOUSTEAD HOLDINGS BERHAD ANNUAL REPORT 2019 02 02 OVERVIEW OF BOUSTEAD HOLDINGS BERHAD <ul style="display: flex;"><li style="flex:1">WHO WE ARE </li><li style="flex:1">CORPORATE VISION </li></ul>To hold strong to our tradition of delivering solid and stable growth while nurturing talent that will bring about a higher level of excellence in all endeavours that the Boustead Holdings Berhad traces its roots back to 1828. The Group has evolved from its modest beginnings to become a diverse Malaysian conglomerate, now operating in six core areas of the Malaysian economy, which are: plantation, property, pharmaceutical, heavy industries, finance & investment and trading & industrial. Boustead Group undertakes. The Group employs over 18,000 individuals across its listed and non-listed operations. As at 31 December 2019, Boustead’s total assets stood at RM17.0 billion while shareholders’ funds amounted to RM3.7 billion. CORPORATE MISSION To place the interest of our shareholders as the highest priority by maximising shareholder value. To acknowledge our employees as our most valuable assets. PHILOSOPHIES To continue development of our human resources to retain a competitive edge in the industry. To accept the importance of our clients by providing products and services of the highest quality. • To constantly develop organisational policies and corporate systems to fulfil the needs of dynamic business environments. To enhance our global position while proudly • To continuously improve customer satisfaction by enhancing human resource development strategies and managing resources efficiently as well as practise a positive corporate culture. representing Malaysia. GROUP MOTTO • To hold firm to a balanced management style of being prudent in seizing business opportunities that enhance shareholder value. • To maintain a corporate governance culture that advocates best practices in business. ‘A TRADITION OF STRENGTH AND STABILITY, A VISION OF GROWTH AND EXCELLENCE’. • To embrace diversity and entrepreneurship in our daily dealings. CORE VALUES RESPECT DIGNITY. TRUST. FAIR. OPEN. HONOUR What it means to us; We believe in the inherent worth of people and will honour relationships with our fellow employees, our customers, our shareholders, our stakeholders and our community. We measure respect for people by the way we treat each other, by the contributions that flow from our diversity, by the productivity of our relationships, and by a job well done, no matter what the job is. INTEGRITY HONEST. TRUTHFUL. CONSCIENCE. SINCERE. ACCOUNTABILITY What it means to us; We adopt open and honest attitudes in all aspects. We adhere to all sets of rules, regulations and guidelines. We perform to our best ability at a very high standard whilst continuously improving the quality of our products and services. TEAMWORK UNITY. HARMONY. CO-OPERATION. COMMITMENT. COLLABORATION What it means to us; We collaborate and work co-operatively across cultures and organisational boundaries to achieve shared goals and work towards solutions which generally benefit all parties involved. We share our beliefs and agree to a common cause to show our commitment to each other’s well being. EXCELLENCE PROFESSIONAL. COURAGE. PRIDE. PROACTIVE. COMPETITIVE What it means to us; We uphold our commitment to operate competitively, strive to acquire the relevant knowledge and skills and benchmark ourselves against world-class leaders in our efforts towards continuous improvement. We demonstrate flexibility as well as courage, highlighting our ability to keep ourselves aligned with a world in motion. 03 03 BOUSTEAD HOLDINGS BERHAD ANNUAL REPORT 2019 04 04 WHAT WE DO BUSINESS UNITS & HIGHLIGHTS Plantation Division Property Division Pharmaceutical Division Boustead Holdings Berhad’s Plantation Division possesses decades of experience in managing plantations across Peninsular Malaysia, as well as Sabah and Sarawak. As one of the key players within Malaysia’s palm oil industry, the Division fully supports The Property Division is involved in four key activities within the property to the pharmaceutical and healthcare The Pharmaceutical Division caters industry, which are property development, property investment, hotel operations and project management. The Division has built a formidable portfolio of key assets including a hotel chain, awardwinning townships, retail industries with its range of offerings that include manufacturing of generic pharmaceuticals and medical devices, logistics and distribution, sales and marketing, distribution of medical products and hospital equipment in addition to retail pharmacy. sustainable practices as part of its <ul style="display: flex;"><li style="flex:1">operations. </li><li style="flex:1">establishments as well as </li></ul>commercial and residential developments. Heavy Industries Division Finance & Investment Division Trading & Industrial Division The Heavy Industries Division’s participation in the maritime and aerospace sectors involves the provision of various products and services including naval shipbuilding, maintenance, repair and overhaul services, fabrication for the oil and gas industry as well as aviation support services. The Finance & Investment Division is involved in financial services, education, travel and tourism. The Division’s financial services business is driven by AFFIN Bank which provides financial solutions encompassing investment banking, consumer banking, Islamic banking, finance as well as insurance. The Trading & Industrial Division’s key business venture is owning and operating Malaysia’s only other home-grown retail petroleum network. The Division also participates in the distribution of building materials and provision of project management expertise for the construction industry. 05 05 BOUSTEAD HOLDINGS BERHAD ANNUAL REPORT 2019 06 06 FACTS AT A GLANCE REVENUE RM10.3 billion EBITDA RM455 million <ul style="display: flex;"><li style="flex:1">LOSS BEFORE </li><li style="flex:1">LOSS AFTER </li></ul><ul style="display: flex;"><li style="flex:1">TAXATION & ZAKAT </li><li style="flex:1">TAXATION & ZAKAT </li></ul>RM1.3 billion RM1.4 billion CAPEX & ACQUISITION NET ASSETS PER SHARE RM598 million 184 sen SHAREHOLDERS’ EQUITY TOTAL ASSETS RM3.7 billion RM17.0 billion FINANCIAL CALENDAR FINANCIALYEAR 1 January to 31 December 2019 RESULTS 1st quarter Announced 30 May 2019 2nd quarter Announced 28 August 2019 3rd quarter Announced 29 November 2019 4th quarter Announced 28 February 2020 ANNUAL REPORT Issued 24 June 2020 ANNUAL GENERAL MEETING To be held 22 July 2020 07 07 BOUSTEAD HOLDINGS BERHAD ANNUAL REPORT 2019 08 08 FIVE-YEAR FINANCIAL HIGHLIGHTS 2019 <ul style="display: flex;"><li style="flex:1">2018 </li><li style="flex:1">2017 </li><li style="flex:1">2016 </li><li style="flex:1">2015 </li></ul>FINANCIAL PERFORMANCE Revenue 10,322 (1,336) (1,386) (1,279) (63.1) (29.3) (5.6) 10,186 (479) (554) (535) (26.4) (9.9) 10,238 1,073 875 436 21.5 7.2 8,371 740 589 369 20.0 7.0 8,663 269 139 13 0.8 0.3 (Loss)/profit before taxation and zakat (Loss)/profit after taxation and zakat (Loss)/profit attributable to shareholders (Loss)/earnings per share Return on equity sen %<ul style="display: flex;"><li style="flex:1">%</li><li style="flex:1">Return on assets </li><li style="flex:1">(1.3) </li><li style="flex:1">7.0 </li><li style="flex:1">5.8 </li><li style="flex:1">3.3 </li></ul><ul style="display: flex;"><li style="flex:1">Return on revenue </li><li style="flex:1">%</li></ul>1.7 <ul style="display: flex;"><li style="flex:1">(0.3) </li><li style="flex:1">12.1 </li><li style="flex:1">7.0 </li><li style="flex:1">4.3 </li></ul>DIVIDENDS Dividend for the year Net dividend per share Dividend yield ––––101 5.0 3.5 223 11.0 2.9 305 17.5 6.6 207 20.0 4.7 –sen %<ul style="display: flex;"><li style="flex:1">times </li><li style="flex:1">Dividend cover </li><li style="flex:1">(5.3) </li><li style="flex:1">2.0 </li><li style="flex:1">1.2 </li></ul>GEARING Borrowings Gearing Interest cover 7,910 1.4 (2.8) 7,533 1.0 (1.0) 6,184 0.7 6.0 7,317 0.9 3.5 8,034 1.1 1.9 times times OTHER FINANCIAL STATISTICS Net assets per share Share price – high Share price – low Price earning ratio times Paid up share capital Shareholders’ equity Total equity sen sen sen 184 160 93 246 292 136 305 307 241 295 271 186 439 475 380 – 517 (2) <ul style="display: flex;"><li style="flex:1">(5) </li><li style="flex:1">13 </li><li style="flex:1">13 </li></ul>2,736 3,729 5,688 16,975 2,736 4,995 7,804 18,417 2,736 6,182 9,243 18,263 1,014 5,985 8,875 18,530 4,543 7,358 <ul style="display: flex;"><li style="flex:1">17,620 </li><li style="flex:1">Total assets </li></ul>Notes: – All figures are in RM million unless otherwise stated. – The financial information relating to 2019, 2018 and 2017 are in accordance with the Malaysian Financial Reporting Standard (MFRS) Framework. – The financial information relating to 2016 and 2015 are in accordance with the Financial Reporting Standard (FRS) Framework. PROFIT/(LOSS) BEFORE TAXATION AND ZAKAT <ul style="display: flex;"><li style="flex:1">SHAREHOLDERS’ EQUITY </li><li style="flex:1">REVENUE </li></ul><ul style="display: flex;"><li style="flex:1">(RM Million) </li><li style="flex:1">(RM Million) </li><li style="flex:1">(RM Million) </li></ul><ul style="display: flex;"><li style="flex:1">8,663 8,371 10,238 10,186 10,322 </li><li style="flex:1">269 </li><li style="flex:1">740 </li></ul>1,073 (479) (1,336) 4,543 5,985 6,182 4,995 3,729 <ul style="display: flex;"><li style="flex:1">2015 </li><li style="flex:1">2015 </li><li style="flex:1">2015 </li><li style="flex:1">2015 </li><li style="flex:1">2015 </li></ul><ul style="display: flex;"><li style="flex:1">2015 2016 2017 2018 2019 </li><li style="flex:1">2015 2016 2017 2018 2019 </li><li style="flex:1">2015 2016 2017 2018 2019 </li></ul><ul style="display: flex;"><li style="flex:1">EARNINGS/(LOSS) PER SHARE </li><li style="flex:1">DIVIDEND PER SHARE </li><li style="flex:1">NET ASSETS PER SHARE </li></ul><ul style="display: flex;"><li style="flex:1">(Sen) </li><li style="flex:1">(Sen) </li><li style="flex:1">(Sen) </li></ul><ul style="display: flex;"><li style="flex:1">0.8 </li><li style="flex:1">20.0 </li><li style="flex:1">21.5 </li></ul>(26.4) (63.1) <ul style="display: flex;"><li style="flex:1">20.0 </li><li style="flex:1">17.5 </li><li style="flex:1">11.0 </li><li style="flex:1">5.0 </li><li style="flex:1">–</li><li style="flex:1">439 </li><li style="flex:1">295 </li><li style="flex:1">305 </li><li style="flex:1">246 </li></ul>184 <ul style="display: flex;"><li style="flex:1">2015 2016 2017 2018 2019 </li><li style="flex:1">2015 2016 2017 2018 2019 </li><li style="flex:1">2015 2016 2017 2018 2019 </li></ul>09 09 BOUSTEAD HOLDINGS BERHAD ANNUAL REPORT 2019 10 10 CORPORATE INFORMATION DIRECTORS Dato’ Seri Mohamed Khaled Nordin Chairman Non-Independent Non-Executive Director Appointed with effect from (w.e.f.) 1 May 2020 Dato’ Nonee Ashirin Dato’ Mohd Radzi Independent Non-Executive Director Appointed w.e.f. 15 July 2019 Dato’ Wira (Dr.) Megat Abdul Rahman Megat Ahmad Senior Independent Non-Executive Director (until 24 April 2019) Abraham Verghese a/l TV Abraham Independent Non-Executive Director Appointed w.e.f. 15 July 2019 Datuk Zainun Aishah Ahmad Senior Independent Non-Executive Director Datuk Azzat Kamaludin Non-Independent Non-Executive Director (until 31 July 2019) Appointed w.e.f. 1 December 2017 Datuk Francis Tan Leh Kiah Independent Non-Executive Director (until 31 July 2019) Loong Caesar Independent Non-Executive Director Appointed w.e.f. 15 July 2019 Dato’ Sri Amrin Awaluddin Managing Director/Chief Executive Officer Appointed w.e.f. 6 May 2019 Dato’ Sri Ghazali Mohd Ali Non-Independent Executive Director (until 31 July 2019) Izaddeen Daud Independent Non-Executive Director Appointed w.e.f. 18 May 2020 Nik Amlizan Mohamed Non-Independent Non-Executive Director Appointed w.e.f. 1 November 2018 Gen. Tan Sri Dato’ Seri Panglima Mohd Ghazali Hj. Che Mat (R) Chairman Non-Independent Non-Executive Director (until 31 July 2019) Lieutenant General Dato’ Fadzil Mokhtar (R) Independent Non-Executive Director Appointed w.e.f. 15 July 2019 <ul style="display: flex;"><li style="flex:1">Nucleus Tower at Mutiara Damansara </li><li style="flex:1">Mutiara Rini Phase 6B houses in Skudai, Johor </li></ul><ul style="display: flex;"><li style="flex:1">REGISTERED OFFICE </li><li style="flex:1">SECRETARIES </li><li style="flex:1">AUDITORS </li></ul>28th Floor, Menara Boustead 69 Jalan Raja Chulan Affendi Mohd Yob Juniza Azizan Ernst & Young PLT 50200 Kuala Lumpur, Malaysia Tel : (03) 2141 9044 Fax : (03) 2141 9750 <a href="/goto?url=http://www.boustead.com.my" target="_blank">www.boustead.com.my </a>STOCK EXCHANGE LISTING PRINCIPAL BANKERS Bursa Malaysia Securities Berhad <ul style="display: flex;"><li style="flex:1">Stock name: BSTEAD </li><li style="flex:1">Affin Bank Berhad </li></ul>Affin Hwang Investment Bank Berhad Alliance Bank Malaysia Berhad Ambank (M) Berhad Stock code: 2771 REGISTRAR Tricor Investor & Issuing House Services Sdn Bhd Unit 32-01, Level 32, Tower A Vertical Business Suite Avenue 3, Bangsar South No. 8 Jalan Kerinchi CIMB Bank Berhad Malayan Banking Berhad OCBC Bank (Malaysia) Berhad RHB Bank Berhad HOLDING CORPORATION Lembaga Tabung Angkatan Tentera United Overseas Bank Berhad 59200 Kuala Lumpur, Malaysia Tel : (03) 2783 9299 Fax : (03) 2783 9222 Research and development of pharmaceutical products 11 11 BOUSTEAD HOLDINGS BERHAD ANNUAL REPORT 2019

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