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ANNUAL GENERAL MEETING

2014
7 February 2016
UniRazak Kuala Lumpur

COMPANY
BACKGROUND
Thehistory of Kulim (Malaysia) Berhad (Kulim or the Group) began
over 70 years ago with the incorporation of Kulim Rubber Plantations Ltd
(KRPL) in the United Kingdom on 4 July 1933.
1947 - marked the Groups humble beginning with an operation of 190
hectares of rubber plantation in the state of Johor, Malaysia.
16 July 1970 - KRPL changed its name to The Kulim Group Limited (KGL)
and was listed on the London Stock Exchange (LSE).
1975 - Incorporation of Kulim (Malaysia) Sdn Bhd on 3 July and was later
made public as Kulim (Malaysia) Berhad ("Kulim") on 18 August. On 14
November, Kulim was listed on the Main Board of the Kuala Lumpur Stock
Exchange (now known as the Main Market of Bursa Malaysia Securities
Berhad).

VISION & MISSION


DELIVERING VALUE
To excel in delivering value to all our stakeholders through high performance teams who are committed to the
highest standards of Ethics, Integrity and Professionalism

We aim to be the most progressive, efficient, profitable and respectable corporate organization.
We shall:
enhance and deliver value to the stakeholders;
optimise the use of resources;
produce superior quality products;
move closer to the consumers;
be socially and environmentally responsible corporate citizen;
operate with due regard for the welfare, health and safety of employees, the local community and the
wider public.

Corporate Values

Competitive

Action

Responsible

Ethical

Corporate Values
WE C.A.R.E.

Kulim (Malaysia) Berhad believes that the spirit of caring is integral to the
prosperity and survival of our business. Our concept of caring integrates and
extends beyond our capital providers, to include our employees, our society
and our environment. It means building our COMPETITIVE capacity with
intense biasness towards ACTION in generating profitable growth whilst being
firmly guided by our pledge to be RESPONSIBLE and ETHICAL.
We CARE...so
We CARE...so
We CARE...so
We CARE...so
being
We CARE...so

we
we
we
we

ensure our shareholders are rewarded with superior returns


teach and nurture the same spirit among our employees
contribute and enrich the lives of our community and society
treat the earth with respect for it has given us our reason for

we share...

Awards And
Recognition

Core Businesses

Groups Board of
Directors
DATO'KAMARUZZAMAN ABUKASSIM
Chairman / Non-Independent Non-Executive Director
Aged 51, is a Non-Independent Non-Executive Director and the
Chairman of Kulim (Malaysia) Berhad (Kulim). He was appointed
to the Board of Kulim as Director on 1 January 2008 and appointed
as Chairman on 12 January 2011. He is also the Chairman of the
Board Option Committee. He graduated with a Bachelor of
Commerce majoring in Accountancy from the University of
Wollongong, New South Wales, Australia in 1987.
Dato' Kamaruzzaman currently holds directorship(s) in listed
companies in Malaysia as follows:
Kulim (Malaysia) Berhad Non-Independent Non-Executive
Chairman
KPJ Healthcare Berhad Non-Independent Non-Executive Chairman
Al-Aqar Healthcare REIT Non-Independent Non-Executive

Groups Board of
Directors
AHAMADMOHAMAD
Managing Director
Aged 62, is the Managing Director of Kulim (Malaysia) Berhad since
1993. He was appointed to the Board on 24 January 1991. He is also
a member of the Board Option Committee.
He currently holds directorship(s) in listed companies in Malaysia as
follows:
Kulim (Malaysia) Berhad Managing Director.
KPJ Healthcare Berhad Non-Independent Non-Executive Director.
E.A Technique (M) Berhad Non-Independent Non-Executive
Chairman.

Groups Board of
Directors
JAMALUDIN MD ALI
Executive Director
Aged 57, was appointed to the Board of Kulim (Malaysia) Berhad as a
Non-Independent Non-Executive Director on 1 July 2012 and was redesignated as Executive Director on 4 December 2012.
He currently holds directorship(s) in listed companies in Malaysia as
follows:
Kulim (Malaysia) Berhad Executive Director.
E.A Technique (M) Berhad Alternate Director to Ahamad Mohamad.
Al-Aqar Healthcare REIT Non-Independent Non-Executive Director.

Groups Board of
Directors
ABDUL RAHMAN SULAIMAN
Executive Director
Aged 57, was appointed as Executive Director of Kulim (Malaysia) Berhad
on 1 September 2013.
He currently holds directorship(s) in listed company in Malaysia as follows:
Kulim (Malaysia) Berhad Executive Director.

Groups Board of
Directors
ZULKIFLIIBRAHIM
Non-Executive Non Independent Director
Aged 57, was the Chief Operating Officer of Kulim (Malaysia Berhad since
3 November 2003 and was re-designated as the Executive Director when
he was appointed to the Board on 1 July 2011. He was later redesignated as a Non-Independent Non-Executive Director on 1
September 2013.
He currently holds directorship(s) in listed companies in Malaysia as
follows:
Kulim (Malaysia) Berhad Non-Independent Non-Executive Director.
KPJ Healthcare Berhad Non-Independent Non-Executive Director.

Groups Board of
Directors
TAN SRI DATINPADUKASITI SA'DIAH
SHBAKIR
Independent Non-Executive Director
Aged 63, is an Independent Non-Executive Director of Kulim (Malaysia)
Berhad. She was appointed to the Board as a Non-Independent Non-Executive
Director on 1 January 2005 before re-designated as Independent NonExecutive Director on 1 May 2015.
Tan Sri currently holds directorship(s) in listed companies in Malaysia as
follows:
Kulim (Malaysia) Berhad - Independent Non-Executive Director.
KPJ Healthcare Berhad - Independent Non-Executive Director.

Groups Board of
Directors
ROZAINI MOHD SANI
Non Independent Non-Executive Director
Aged 42, was appointed to the Board as a Non-Independent Non-Executive
Director on 15 January 2015. He obtained his Bachelor of Commerce
(Accounting and Finance) with Merit degree from University of New South
Wales, Australia in 1994 and is also a Fellow of Chartered Accountants
Australia and New Zealand.
He currently holds directorship(s) in listed company in Malaysia as follows:
Kulim (Malaysia) Berhad - Non-Independent Non-Executive Director .

Groups Board of
Directors
TAN SRI DATO' SERI UTAMA ARSHAD AYUB
Independent Non-Executive Director
Aged 87, is currently an Independent Non-Executive Director of Kulim
(Malaysia) Berhad. He was appointed to the Board of Kulim on 31 January
1987. He is the Chairman of the Audit Committee. Tan Sri is also appointed
as a member of the Remuneration and Nomination Committee of Kulim.
Tan Sri currently holds directorship(s) in listed companies in Malaysia as
follows:
Kulim (Malaysia) Berhad - Independent Non-Executive Director
Malayan Flour Mills Berhad - Independent Non-Executive Chairman
Tomypak Holdings Berhad - Independent Non-Executive Chairman
Karex Berhad - Independent Non-Executive Chairman
Top Glove Corporation Berhad Independent Non-Executive Director

Groups Board of
Directors
DATUKHARONSIRAJ
Independent Non-Executive Director
Aged 71, was appointed to the Board of Kulim (Malaysia) Berhad on 9
January 2006 as an Independent Non-Executive Director. He is also a
member of the Nomination Committee of Kulim.
He currently holds directorship(s) in listed company in Malaysia as
follows:
Kulim (Malaysia) Berhad - Independent Non-Executive Director.

Groups Board of
Directors
DR. RADZUAN A. RAHMAN
Independent Non-Executive Director
Aged 72, was appointed to the Board of Kulim (Malaysia) Berhad on 1
November 2006 as an Independent Non-Executive Director. He is also
appointed as a member of the Audit, Remuneration and Board Option
Committee of Kulim.
He currently holds directorship(s) in listed company in Malaysia as
follows:
Kulim (Malaysia) Berhad - Independent Non-Executive Director.

Groups Board of
Directors
LEUNG KOK KEONG
Independent Non-Executive Director
Aged 48, was appointed to the Board of Kulim (Malaysia) Berhad as an
Independent Non-Executive Director on 9 November 2011. He is also
appointed as a member of the Audit Committee of Kulim.
He currently holds directorship(s) in listed company in Malaysia as follows:
Kulim (Malaysia) Berhad - Independent Non-Executive Director.

Corporate Social
Responsibility
The community investment activities:

Subsidiaries List
Effective equity interest
Principal Activities
(%)

Name
Subsidiaries of Kulim
Mahamurni Plantations Sdn Bhd ("MPBS")
Kulim Plantations (Malaysia) Sdn Bhd
Selai Sdn Bhd
Ulu Tiram Manufacturing Company (Malaysia)
Sdn Bhd ("UTMC")
Kumpulan Bertam Plantations Berhad
EPA Management Sdn Bhd ("EPA")
Skellerup Industries (Malaysia) Sdn Bhd
("SIMSB")
Kulim Topplant Sdn Bhd
JTP Trading Sdn Bhd ("JTP")
Kulim Energy Sdn Bhd
Kulim Energy Nusantara Sdn Bhd ("KENSB")
Pristine Bay Sdn Bhd

100.00
100.00
100.00

Oil palm plantation


Oil palm plantation
Oil palm plantation

100.00

Oil palm plantation

95.26
100.00

Oil palm plantation


Investment holding

100.00

Manufacturer of rubber-based products

60.00
100.00
100.00
100.00
51.00

Production oil palm clones


Trading/distribution of tropical fruits
Investment holding
Investment holding
Investment holding
Investment holding, operations of oil palm
mill and rubber estate
Investment holding
Cultivation of agriculture produce
Cultivation of pineapples and other
argicultural produce
Oil palm nursery and other related services
Marketing of personal care products

Sindora Berhad ("SINDORA")

100.00

PT Wisesa Inspiration Nusantara ("PT WIN")


Cita Tani Sdn Bhd

74.00
100.00

Renown Value Sdn Bhd


Kulim Nursery Sdn Bhd ("KNSB")
The Secret of Secret Garden Sdn Bhd ("SGSB")

75.00
75.00
100.00

Shareholder

Others; 33%
RHB Capital; 4%
HSBC; 4%

Johor Corporation; 47%

Wakaf An Nur Corporation


Berhad;
5% Persaraan; 6%
Kumpulan
Wang

Group Performance

Revenue Segment
Segment Percent

Plantation

Intrapreneur Venture

6%
24%
70%

Others

Income Statement
Summary

2014
(RM'000)

Percentage

2013
(RM'000)

Percentage

Revenue

1,093,665

1,013,156

COGS

824,425

75.38%

738,779

72.92%

Gross Profit

269,240

24.62%

274,378

27.08%

60,135

28,372

Expenses
Profit Before
Tax

191,051

17.47%

155,776

15.38%

95,533

8.74%

106,918

10.55%

Net Profit

308,441

28.20%

465,822

45.98%

Other Income

Revenue Segment
Financial Statistic
1,200,000

1,000,000

800,000

600,000

400,000

200,000

Revenue

COGS

Gross Profit

Other Income

('000) 2014 (RM'000)

Expenses

('000) 2013 (RM'000)

Profit Before Tax

Net Profit

Financial Position

2014 (RM'000)

2013 (RM'000)

Current Asset

5,451,375

1,615,542

Non Current Asset

3,807,182

6,814,358

Total Asset

9,258,557

8,429,900

Current Liabilities
Non Current
Liabilities

3,008,893

1,364,615

636,961

1,938,137

Total Liabilities

3,645,854

3,302,752

Current Ratio

1.81

1.18

Share Capital

2014

Authorised Share Capital

RM500,000,000

Issued Share Capital

RM328,938,264

Number Of Shares
Earning Per Share (EPS)
(cent)
Gross Dividen Per Share
(cent)

1,315,753,056

Gross Dividen Rate (%)

38

Gross Dividen Yield (%)

2.82

Net Tangible Aset


Price Earning Ratio

12.55
9.50

4.266
26.85 times

Share Price

Altman Z-Score

- high probability of insolvency

Message From the


CHAIRMAN
Dear Stakeholders,
There was much to be positive about Kulim (Malaysia) Berhads
(Kulim or The Group) performance, not withstanding a
challenging operating environment for the financial year ended 31
December 2014 (FY 2014). The Group recorded revenue of
RM1.09 billion and Profit Before Tax (PBT) of RM95.5 million,
despite lower palm oil product prices and volatility in the
commodities market. Consistent with our policy of rewarding
shareholders, an interim dividend of 9.5 sen per share totaling to
RM126.11 million in respect of FY 2014 was paid on 29 December
2014.

QAM 5023
MANAGERIAL ACCOUNTING
MBA (Leadership)
Lecturer : Prof. Dr. Barjoyai Bardai
Prepared By:
MOHD FARID BIN ABIB KLM1590039
KAMARIZAL BIN RAZALI KLM1590037

Thank You