This year’s theme highlights the steadfast execution and positive results reaped by MSM Malaysia Holdings Berhad’s (MSM) Turnaround plan during the year under review. MSM Group is focused on the execution of its turnaround plan through asset optimisation, staying resilient with strengthened income streams and building integration for sustainable performance, supported by the strength of the “Gula Prai” brand as the third most chosen fast-moving consumer goods (FMCG) brand in Malaysia for FY2020. This cover reflects MSM’s leadership in Malaysia as the pioneering flagbearer of the sugar industry. The use of the Wau evokes a national feel and the upward trajectory, as indicated by the bird element, indicates clear focus and direction as MSM spreads its wings in the sugar business. Illustrations of diverse stakeholders are rendered across the cover to depict MSM Group’s core commitment to serve and deliver sustainable value that will elevate lives. GAINING TURNAROUND MOMENTUM 11th Online Meeting Platform https://meeting.boardroomlimited.my (Domain Registration No. with MYNIC – D6A357657) Date 8 June 2022 (Wednesday) Time 11.00 a.m. A N N U A L G E N E R A L M E E T I N G COVER RATIONALE
INSIDE THIS REPORT pg. 8 - 45 pg. 48 - 91 pg. 94 - 115 ABOUT THIS REPORT WHOWE ARE 8 Corporate Profile 10 Our Mission, Vision & Core Values 12 Our Presence 14 Our Value Chain 16 Market Landscape 19 MSM Products 22 Our Corporate Details 23 Our Group Structure 24 Our Organisational Structure 26 Our Achievements 28 2021 Key Event Highlights 34 MSM in the News 40 5-Year Financial Highlights 41 Statement of Financial Position 42 Quarterly Financial Performance 43 Statement of Value Added 44 Segmental Highlights 45 Sales Highlights STATEMENT & DISCUSSION BY OUR LEADERS 48 Chairman’s Address 56 In Conversation with Our Group Chief Executive Officer 66 Group Financial Review 70 Corporate Strategy and Business Plan Review 74 Key Challenges & Mitigations 76 Group Business Review 76 Raw Sugar Sourcing & Procurement 80 Operational & Refining 84 Commercial & Downstream 88 Supply Chain HOWWE OPERATE 94 Our Business Model 96 Materiality Assessment Process 102 Stakeholders Engagement 108 Investor Relations with a Difference 115 Financial Calendar SUSTAINABILITY JOURNEY 118 Board Statement on Sustainability 122 Our Sustainability Commitment 124 Our Sustainability Governance 128 Our Way Forward in Our Sustainability Journey 130 Environment Initiatives 142 Social Initiatives 175 Governance Initiatives HOWWE ARE GOVERNED 184 Board of Directors Diversity 186 Profile of Directors 195 Profile of Company Secretary 196 Executive Committee at a Glance 198 Profile of Executive Committee 205 Profile of Heads of Operations 208 Corporate Governance Overview Statement 229 Audit, Governance and Risk Committee Report 236 Nomination and Remuneration Committee Report 245 Investment and Tender Committee Report 247 Additional Compliance Information 251 Statement on Risk Management and Internal Control FINANCIAL STATEMENTS 265 Statement on Directors’ Responsibilities 266 Directors’ Report 270 Statement by Directors 270 Statutory Declaration 271 Independent Auditors’ Report 276 Statements of Comprehensive Income 278 Statements of Financial Position 280 Consolidated Statement of Changes in Equity 281 Company Statement of Changes in Equity 282 Statements of Cash Flows 286 Notes to the Financial Statements ADDITIONAL INFORMATION 372 Analysis of Shareholdings 375 Summary of Properties Leased 376 List of Top 10 Properties Owned 378 Notice of Annual General Meeting 388 Statement Accompanying Notice of the 11th Annual General Meeting 389 Administrative Guide Proxy Form pg. 118 - 181 pg. 184 - 263 pg. 265 - 369 pg. 372 - 394
ABOUT THIS The report aims to provide our stakeholders with transparent, relevant and integrated information of our business strategy, performance, and future prospects in the context of Environment, Social and Governance (ESG), leading to the creation of stakeholder value over the short, medium and long-term. We are guided by our vision “To be a World Class, Cost-Efficient and High-Performance Organisation with a Sustainable Business Model and Diverse Portfolio in the Food-Related Business” and are resolute in our sustainable promise of “Sweet Sustenance in a Responsible, Sustainable and Mindful Way”. We intend to deliver this promise through enhancing our shareholder value, optimising growth and achieving a sustainable, balanced and integrated ESG performance by transforming our business model and reaping opportunities throughout the global food value chain. Reporting Frameworks applied Introductiontothe 11th Annual Integrated Report (AIR) MSM’s AIR for the year ended 31 December 2021 has been improved to meet all the principles of the International Integrated Reporting Framework (IIRF) developed by the International Integrated Reporting Council (IIRC). We also strive to continuously enhance the quality of information available to our stakeholders and reporting practices through adoption of the IIRF, in consonance with the recommendations in the Malaysian Code on Corporate Governance 2021 (MCCG 2021) on integrated reporting. Improvements of disclosure for FY2021 are evident in greater Investor Relations disclosure as described on page 108; update of our Business Model on page 94; and advancements in our Sustainability Journey “as a step towards meeting” the FTSE4Good Bursa Malaysia Index standards, expand our alignment to the core disclosures under the Global Reporting Initiative (GRI) standards as well as focus on promoting relevant United Nations Sustainable Development Goals (UN SDGs) into our strategies. The sustainability of our business shall continue to be strengthened as we review our ESG elements holistically across our business and operations. Access our 2021 Annual Integrated Reporting Suite online, by simply scanning the QR code below: The full report is also available online on our corporate website at: www.msmsugar.com Main Market Listing Requirements (Listing Requirements) of Bursa Malaysia Securities Berhad Malaysian Financial Reporting Standards (MFRS) International Financial Reporting Standards Companies Act 2016 Malaysian Code on Corporate Governance 2021 (MCCG 2021) Global Reporting Initiative (GRI) Standards for Sustainability Reporting
REPORT Reporting Scope and Boundary This report covers our financial and non-financial performance during the period from 1 January 2021 to 31 December 2021. Our reporting encompasses all material developments concerning MSM up until the approval of the annual financial statements. It focuses on MSM as a Group and encompasses our operating subsidiaries, i.e. MSM Prai Berhad, MSM Logistics Sdn Bhd and MSM Sugar Refinery (Johor) Sdn Bhd. This report has been compiled in accordance with the concepts, guiding principles and content elements contained in the IIRC framework. This framework employs a reporting approach to create short, medium and long-term value as well as the connectivity and interdependencies of the six capitals, namely human, natural, manufactured, financial, intellectual, and social & relationship capital. Information presented relates to the principal activities of MSM Group and all its subsidiaries, unless stated otherwise. The SIX Capitals of Value Creation Through this report, MSM hopes to give a comprehensive and holistic overview of the matters that influence our ability to create value, including market challenges, risk management, strategies, governance, initiatives and key developments. MSM Group’s focus on value creation is driven by the economic value we deliver and the sustainability of the communities that we serve. We relentlessly strategise on the mobilisation of our Six Capitals to coordinate, educate, support and collaborate with our stakeholders and monitor value creation outcomes to enhance resiliency. These capitals, as identified by the IIRC, have served as essential guides to help us achieve our strategic objectives. The capitals represent stores of value and each of them – Financial Capital, Natural Capital, Manufactured Capital, Intellectual Capital, Human Capital and Social & Relationship Capital – is important on how it impacts our business. MSM’s business strategies revolve around maximising positive outcomes within these capitals, being mindful of the trade-offs between capitals, and mitigating negative impacts. By reporting according to the Six Capitals, our stakeholders will be better informed and have a broader view of how the business strives to create net positive value. This approach also allows for more concise understanding of our value creation over time. Our value creation Business Model that shows the inter-relatedness and dependencies between our Capitals and other factors that drive our value creation journey is disclosed on pages 94 to 95. MATERIALITY MSM applies the principle of materiality to determine the content of our integrated report and defines materiality as matters that substantially affect MSM Group’s ability to create and sustain value over the short, medium and long-term. These matters were identified, prioritised and validated via a materiality assessment described in page 96. Subsequently, our key stakeholders were engaged throughout this process, and this has enabled MSM to incorporate their inputs into our business perspective. Our strategic responses to these material matters are presented in pages 96 to 101. Forward Looking Statement MSM’s forward looking statements are inclusive of MSM Group’s future direction, strategies, and potential opportunities for growth. These statements can be identified by key words such as “believes”, “estimates”, “anticipates”, “expects”, “intends”, “may”, “will”, “plans”, “outlook” and other words of similar meaning in connection with a discussion of future operating or financial performance. These are based on various assumptions and are subject to a number of risks, uncertainties and contingencies, many of which are beyond the control of MSM. Unanticipated events and actual future events may differ materially from current expectations due to new business opportunities, changes in priorities by the Group and other factors. Reporting Integrity and Assurance To uphold report quality and ensure that the information presented in this report is reliable, consistent and complete, this report has been reviewed by the Executive Committee. The report has further been reviewed by the Audit Committee and together with the Audited Financial Statements 2021, submitted to the Board for its final approval. MSM’s Board of Directors and Senior Management, has approved the contents of this Annual Integrated Report, guided by the requirements of the MCCG 2021, Companies Act 2016, the Listing Requirements of Bursa Malaysia and Sustainability Guidelines. The financial report and statements have been audited by MSM’s appointed external auditors, PricewaterhouseCoopers PLT (PwC) and is approved free of qualifications. The Board acknowledges responsibility for ensuring the integrity recommendations of the Annual Integrated Report, following recommendation by the Audit, Governance and Risk Committee, responsible for oversight of the annual integrated report. The external auditors have also provided a limited assurance review on our Statement on Risk Management and Internal Control (SORMIC).
ABOUT THIS REPORT NAVIGATION ICONS Throughout this report, the following navigation icons are used to link our six capitals, key stakeholders, strategic themes and enablers to material matters, risks, and performance. Our financial capital enables us to provide salaries for our employees, dividends for our shareholders and investment in communities while driving sustainable growth through reinvestments to maintain and grow our business. Our investors’ funds are wisely invested to increase our operational efficiency as well as to initialise operations in our plants. Raw sugar and fuel are the natural capitals of our industry. We depend on reliable access to these to maintain smooth operations. Price of raw sugar has a great impact on our profit margin and is determined by open market commodity forces. As such, we have strong risk management in place through price hedging mechanism in meeting budgets. We build trusted relationships with raw sugar suppliers and exercise hedging strategies to optimise on better deals. Our skilled employees, contract workers and experienced management team are our greatest assets. We have 1,033 employees which are considered skilled industry experts who provide us a competitive edge in helping us maintain market leadership. Via training and skill enhancement initiatives such as Staff Mobility Programme, we seek to maintain a good quality talent pool within the Group. We were established to ensure national self-sufficiency in sugar, and have since become the flagbearers of Malaysia’s sugar industry. As such, MSM’s social and relationship capital are the relationships of trust we build with our stakeholders - our employees, customers, suppliers, investors, communities, regulators, the government, industry partners and the media. We contribute to national and community development through the payment of taxes and zakat, as well as create employment opportunities by maintaining profitable operations. OUR SIX CAPITALS STAKEHOLDERS Consumers & Customers Vendors, Suppliers & Industry Partners Employees Media, NGOs & Communities Financial Capital Natural Capital Human Capital Social & Relationship Capital Regulatory Agencies & Statutory Bodies We produce the highest quality sugar with assured certifications. We also ensure availability of refined sugar through effective stock management. With our recent opening of the MSM Sugar Refinery (Johor) Sdn Bhd plant, we have increased production capacity to 2.05 million tonnes per annum, making MSM one of the largest sugar refiners in the world. Manufactured Capital Our strong brand, expertise, capabilities and established technologies steer our business success. We have over 50 years of industry experience. This has ensured our market share dominance in the domestic market. Our production is anchored on quality certified management processes and systems. Intellectual Capital Shareholders & Investment Community
Improve MSM Johor’s Production Capability, Yield and Refining Cost Improve Sales & Distribution through Territory Consolidation and Area Demarcation Increase Growth in Domestic Volume Growth inValue Added Segment Sales Strategic Capital Management Export via Strategic Partnership Monetise Non-core Assets Service & Product Quality Operational Performance Occupational Safety & Health Performance Governance Macroeconomic Conditions Financial Management Resource Management Talent management Economic Impact Community Empowerment MATERIAL MATTERS STRATEGIC DRIVERS M1 S1 S2 S3 S4 S5 S6 S7 M2 M3 M4 M5 M6 M7 M8 M9 M10
ARE WHO WE
8 Corporate Profile 10 Our Mission, Vision & Core Values 12 Our Presence 14 Our Value Chain 16 Market Landscape 19 MSM Products 22 Our Corporate Details 23 Our Group Structure 24 Our Organisational Structure 26 Our Achievements 28 2021 Key Event Highlights 34 MSM in the News 40 5-Year Financial Highlights 41 Statement of Financial Position 42 Quarterly Financial Performance 43 Statement of Value Added 44 Segmental Highlights 45 Sales Highlights
Incorporated on 10 March 2011, MSM is listed on the Main Market of Bursa Malaysia and has grown year-on-year market capitalisation to RM900 million as at 31 December 2021. A 57-year-old iconic home-grown business, which carries an approximate brand value of RM621.1 million, MSM’s continued success is testament that its repute and brand values are being passed on from one generation of Malaysians to the next. The current production capacity for MSM Group is 2.05 million tonnes, a drop from 2.14 million tonnes capacity in FY2020 due to the disposal of MSM Perlis Sdn Bhd following the Group’s consolidation. As improvements in MSM Johor’s utilisation are ongoing, capacity is expected to grow in the near future. MSM Group produces, markets and sells refined sugar products under our flagship Gula Prai brand that lives up to its slogan, “Sweetening Lives Since 1964.” Apart from household consumers, MSM sells to a wide range of customers in Malaysia and in other countries, directly to major industries as well as small and medium industries (SMIs), and indirectly through traders, wholesalers and distributors. Corporate Profile WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 8
Serving >260 customers Total manpower 1,033 employees >50% GLC’s equity ownership Produces >1 million mt of refined sugar products Largest standalone sugar refinery in Malaysia Polarisation of 99.6% ICUMSA 45 Premium Quality Sugar Ranked 3rd most chosen FMCG brand in FY2020 One of the largest sugar refiners in the global sugar industry Production Capacity: 2.05 million tonnes SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 9
OUR MISSION, VISION & CORE VALUES MISSION VISION CORE VALUES We seek to enhance our values for our shareholders, optimise growth and achieve a sustainable, balanced and integrated economic, social and environmental performance by transforming our business model and reaping opportunities throughout the food value chain. To be a world class, cost efficient and high performance organisation with a sustainable business model and diverse portfolio in the food related business. S Sense of Belonging W Winning Attitude I Integrity I Innovation T Teamwork WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 10
OUR SUBSIDIARIES OUR CUSTOMERS OUR PRODUCTS • MSM Prai Berhad • MSM Sugar Refinery (Johor) Sdn Bhd • Malaysian households • Beverage and confectionery companies • White refined sugar of various grain sizes • Soft brown sugar • Sugar premix • Liquid sugar • Molasses • Fine Syrup • Sucralose & Stevia Mix • Hotels • Restaurants and food outlets • Distilleries and producers of ethanol, animal feed and yeast • MSM Logistics Sdn Bhd • MSMTrading & Distribution Sdn Bhd • MSMTrading International DMCC (Under Liquidation) SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 11
OUR PRESENCE Local Presence MSM PRAI SUNGAI BULOHWAREHOUSE MSM HEAD OFFICE MSM JOHOR MSM Prai Berhad 195901000226 (3573-D) MSM Prai Berhad 195901000226 (3573-D) MSM Malaysia Holdings Berhad 201101007583 (935722-K) MSM Sugar Refinery (Johor) Sdn Bhd 201501014132 (1139464-W) LEGEND Head Office Refinery Warehouse and Packing Facility Refining Capacity: 1.05 Million MT Refining Capacity: 1.00 Million MT WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 12
Global REACH MSM Export Destinations 2021 246,101 MT (100%) China 14,051 MT (5.71%) Taiwan 5,726 MT (2.33%) Philippines 2,643 MT (1.07%) New Zealand 11,918 MT (4.84%) Vietnam 136,063 MT (55.29%) Singapore 19,760 MT (8.03%) Hong Kong 8,810 MT (3.58%) Region-wise 246,101 MT (100%) Others 4,016 MT (1.63%) Top 5 Export Destinations 210,423 MT (100%) Vietnam 136,063 MT (64.66%) Singapore 19,760 MT (9.39%) China 14,051 MT (6.68%) New Zealand 11,918 MT (5.66%) South Korea 28,631 MT (13.61%) Southeast Asia 158,466 MT (64.40%) Asia 67,296 MT (27.34%) New Zealand 11,918 MT (4.84%) Australia 4,405 MT (1.79%) South Korea 28,631 MT (11.63%) Australia 4,405 MT (1.79%) Pakistan 5,286 MT (2.15%) MSM's export market share is 8% of APAC SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 13
The MSM Group focuses on the mid-stream activities of the sugar value chain - namely sourcing, processing, marketing and distribution of refined sugar products, value added sugar products and sugar manufacturing by-products. Through two established refineries situated in Prai, Penang andTanjung Langsat, Johor, MSM is known for its premium quality sugar with a high sucrose content which has a dominant presence among the food and beverage industry consumers, both domestically and regionally. Recently, MSM has ventured into producing value added sugar products such as liquid sugar, fine syrup and premix by leveraging on expanded production capacities. MSM is currently exploring the recycling of sugar refining industry’s by-products by converting waste, namely mudcake into fertilisers, and molasses into high value products. Raw Sugar Refinery OUR VALUE CHAIN WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 14
Refined Sugar Liquid Sugar Premix Mudcake Fine Syrup Fertiliser Molasses Current Indirect SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 15
MARKET LANDSCAPE MARKET OVERVIEW The unprecedented COVID-19 impact has made the business environment on both the domestic and international fronts in FY2020/FY2021 challenging. At macro level, global markets have been pressured with supply chain disruptions mainly caused by stricter border controls, rising freight costs, and scarcity of shipping containers, which resulted in the increase of transport rates and costs. Malaysia’s Quarterly GDP Growth 1Q-19 1Q-19 4.5 0.9 1.3 0.8 0.6 -2.0 18.2 -0.3 2.7 -2.0 -3.6 6.6 4.8 4.4 3.6 0.7 -2.6 -3.4 -0.5 16.1 -4.5 3.6 -17.1 Year-on-year Quarter-on-quarter 2Q-19 2Q-19 3Q-19 3Q-19 4Q-19 4Q-19 1Q-20 1Q-20 2Q-20 2Q-20 3Q-20 3Q-20 4Q-20 4Q-20 1Q-21 1Q-21 2Q-21 2Q-21 3Q-21 4Q-21 3Q-21 3Q-21 Moving into FY2022, uncertainties regarding developments surrounding the new Covid-19 variant of concern (Omicron) of the pandemic remains. The progress and efficacy of vaccinations, compliance with standard operating procedures as well as the ability to effectively contain outbreaks from any new COVID-19 variants of concern will be key to the expected recovery. Relaxation of restrictions for fully vaccinated individuals, including for interstate travel would also spur tourism-related activities. At macro level, the strength in global demand will continue to support export growth. Annual Growth FY2021: 3.1% | FY2020: -5.6% | FY2019: 4.3% -16.5 Source: Department of Statistics Malaysia WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 16
SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 17
The domestic Wholesale refined sugar ceiling price was capped at RM2.69/kg for sugar manufacturers. As NY11 and natural gas price increase, sugar manufacturers will experience a margin squeeze. Currently, the Management is engaging the ministry in charge, KPDNHEP, to review the current gazetted ceiling price for 1kg and 2kg retail packs. Natural Gas Price 1Q 1Q 33.65 33.65 33.65 33.65 30.03 36.42 22.14 26.85 Distribution segment (RM/mmBtu) FY2020 FY2021 2Q 2Q 3Q 3Q 4Q 4Q FY2021/FY2022 NATURAL GAS OVERVIEW Gas Malaysia Bhd announced that the average natural gas selling price for the fourth quarter of 2021 beginning from 1 October 2021 to 31 December 2021 is at RM36.42 per million British Thermal Units (MMBtu), compared to RM30.03 per MMBtu for the third quarter of 2021, which translates to a 21% increase. Natural gas makes up 30% of the cost of refining and will post an upside risk in FY2022. In early 2022, the Russian invasion in Ukraine has caused a shock to the global energy supply. Brent Crude Oil prices have surged to new historical highs and the shortage could prevail in the mid term. As a mitigation strategy, the business has embarked on hedging of Brent-linked derivatives. MSM has started hedging the risk of higher Natural Gas prices in late FY2021 via Brent link derivatives contract as part of the mitigation plans. MARKET LANDSCAPE WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 18
Here’s a sugar product that you won’t miss! Available almost everywhere and at every retail outlet in Malaysia. This sugar delivers an excellent taste, making it the ideal sugar to be used for general sweetening. Another hot selling sugar product! Great to be enjoyed with your favourite beverage and home food preparation. Moist with small, fine crystals and has a subtle golden colour. Ideal for baking delicious cookies and cakes, when a fuller flavour is needed. It goes perfectly well with coffee too. Packaging Size • 1kg, 2kg, 25kg, 50kg, 500kg & 1,000kg Packaging Size • 1kg, 25kg, 30kg, 50kg, 500kg, 1,000kg & Bulk Packaging Size • 500g, 25kg & 50kg COARSE GRAIN SUGAR FINE GRANULATED SUGAR SOFT BROWN SUGAR Sugar Grades • Gula Prai Pasir Kasar (Coarse Grain Sugar) • P1 • EP1 Sugar Grades • Gula Prai Pasir Halus (Fine Granulated Sugar) • PXX • P1S • EPXX • EP1S Sugar Grades • Gula Prai Merah Lembut (Soft Brown Sugar) • PB • P4 Storage Condition • Keep sugar in a cool and dry place at ambient temperature Storage Condition • Keep sugar in a cool and dry place at ambient temperature Storage Condition • Keep sugar in a cool and dry place at ambient temperature MSM PRODUCTS Gula Prai ranked as 3rd most chosen FMCG brand in Malaysia in FY2020 (Based on UK-based Kantar Group’s data insights released in the Kantar Asia Brand Footprint 2021) SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 19
Sugar Grades • Gula Prai Aising (Icing Sugar) Sugar Grades • Fine grain sugar Sugar Grades • Fine grain sugar Storage Condition • Keep sugar in a cool and dry place at ambient temperature Storage Condition • Keep in clean and dry place at ambient temperature and away from direct sunlight Storage Condition • Keep in clean and dry place at ambient temperature and away from direct sunlight Packaging Size • 500g, 25kg & 40kg Packaging Size • 2.5gm x 50 sachets • 125gm x 40 boxes Packaging Size • 2.5gm x 50 sachets • 125gm x 40 boxes Popular with bakers because the fine crystals cream very easily into butter and dissolve more readily into meringues and batters. Caster sugar adds more volume to baked products, giving them a lighter texture, a result preferred by bakers. It’s also perfect to be lightly sprinkled over baked goods. No cake would be complete without it! A versatile ingredient in sweet bakery, sugar and chocolate confectionary, it provides a smooth, soft finish texture. It’s also great for cream fillings, shortbread, fondants, marshmallow and adding decorative touches. CASTER SUGAR ICING SUGAR Go 1/2 is mixed with sucralose to add the sweetness you love while reducing overall sugar consumption by half. So you enjoy more sweetness with less sugar. Packaged in convenient sachets for you to control the sugar in your drinks and desserts, even when you are on the go! GO 1/2 Go Natura complements smaller sugar portions with the natural sweetness of stevia in handy sachets that you can take with you wherever you go. One sachet is all you need to satisfy your sweet tooth! GO NATURA Sugar Grades • Gula Prai Kastor (Caster Sugar) Storage Condition • Keep sugar in a cool and dry place at ambient temperature Packaging Size • 500g, 25kg, 50kg & 1,000kg MSM PRODUCTS WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 20
Sugar Grades • Molasses (liquid) Sugar Grades • Sweetened cocoa, glucose or milk preparation Storage Condition • Keep in a cool and dry place Storage Condition • Sweetened cocoa preparation should be kept in clean and dry place at ambient temperature, away from direct sunlight Packaging Size • Ex-factory in customer’s tanker Packaging Size • 25kg PP Woven Bag + Inner Liner The thick and dark brown liquid molasses is a by-product derived from refining sugar process. MSM sells molasses to distilleries and producers of ethanol, animal feed and yeast. Customisable sweetened products for industrial use. MOLASSES PREMIX Sugar Grades • Concentrated clear liquid Storage Condition • Sugar should be kept in clean and dry place at ambient temperature, away from direct sunlight Packaging Size • Flexi bag/Tanker Higher grade of sugar syrup. LIQUID SUGAR Sugar Grades • Concentrated clear liquid Storage Condition • Storage at least at room temperature as lower temperature may cause crystallisation. Storage above 50˚C may cause colour formation Packaging Size • Flexi bag/Tanker Similar to liquid sugar but with profound brown colour appearance. FINE SYRUP SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 21
OUR CORPORATE DETAILS BOARD OF DIRECTORS Datuk Syed Hisham SyedWazir Chairman/Independent Non-Executive Director Choy Khai Choon Independent Non-Executive Director Dato’ Muthanna Abdullah Independent Non-Executive Director Datuk Dr Abd Hapiz Abdullah Independent Non-Executive Director Dato’ Rosini Abd Samad Independent Non-Executive Director Datuk LimThean Shiang Independent Non-Executive Director Dato’ Amir Hamdan HjYusof Non-Independent Non-Executive Director Nik Fazila Nik Mohamed Shihabuddin Non-Independent Non-Executive Director (appointed with effect from 18 October 2021) Azman Ahmad Non-Independent Non-Executive Director (appointed with effect from 18 October 2021) Dato’ Haris Fadzilah Hassan Non-Independent Non-Executive Director (resigned on 7 April 2021) GROUP CHIEF EXECUTIVE OFFICER SYED FEIZAL SYED MOHAMMAD (appointed with effect from 1 February 2021) CHIEF FINANCIAL OFFICER AB AZIZ ISMAIL COMPANY SECRETARY KOO SHUANGYEN (MIA 7556) REGISTERED OFFICE Level 21, Wisma FGV, Jalan Raja Laut, 50350 Kuala Lumpur Wilayah Persekutuan, Malaysia +603 2789 0000 +603 2789 0001 SHARE REGISTRAR Boardroom Share Registrars Sdn Bhd, 11th Floor, Menara Symphony No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13 46200 Petaling Jaya, Selangor, Malaysia +603 7890 4700 +603 7890 4670 AUDITORS Messrs. PricewaterhouseCoopers PLT, Chartered Accountants Level 10, 1 Sentral, Jalan Rakyat, Kuala Lumpur Sentral 50706 Kuala Lumpur, Malaysia +603 2173 1188 +603 2173 1288 www.pwc.com/my STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad Listed since 28 June 2011 Stock Code : 5202 Stock Name : MSM INVESTOR RELATIONS AND ENQUIRIES Investor Relations Officer: Fariza Haizumi Ahmad Level 44, Menara Felda, Platinum Park, No. 11 Persiaran KLCC 50088 Kuala Lumpur, Malaysia +603 2181 5018 +603 2181 5015 www.msmsugar.com investor.relations@msmsugar.com MSM SOCIAL MEDIA ACCOUNTS MSM Malaysia Holdings Berhad MSM Gula Prai MSMGULAPRAI TV @msmgulaprai WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 22
OUR GROUP STRUCTURE KOPERASI PERMODALAN FELDA MALAYSIA BERHAD 15.28% FGV HOLDINGS BERHAD 10.97% FGV SUGAR SDN BHD 40.03% AMANAHRAYA TRUSTEES BERHAD 7.49% OTHER SHAREHOLDERS 26.23% MSM PRAI BERHAD MSM SUGAR REFINERY (JOHOR) SDN BHD MSMTRADING & DISTRIBUTION SDN BHD MSMTRADING INTERNATIONAL DMCC (Under Liquidation) MSM LOGISTICS SDN BHD 100% 100% 100% 100% 100% SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 23
Our Organisational Structure Head, Corporate Governance & Risk Management INTERNAL AUDIT GROUP CHIEF EXECUTIVE OFFICER TRANSFORMATION OFFICER AUDIT, GOVERNANCE & RISK COMMITTEE NOMINATION AND REMUNERATION COMMITTEE GROUP OPERATIONS REFINERY OPERATIONS HEAD, OPERATION SERVICES Head, Operations - MSM Prai Berhad HEAD, PROJECT MANAGEMENT OFFICE Head, Operations - MSM Sugar Refinery (Johor) Sdn Bhd Head, Operations - Sungai Buloh Warehouse GROUP CHIEF OPERATING OFFICER GROUP FINANCE HEAD, TREASURY HEAD, FINANCE COMPLIANCE & INSURANCES HEAD, SHARED SERVICES INVENTORY CONTROL MANAGER FINANCIAL CONTROLLER HEAD, COMMERCIAL & BUDGETING HEAD, GROUP ACCOUNTS, STATUTORY & MAnagement REPORTING CHIEF FINANCIAL OFFICER WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 24
Special OFFICER HEAD, GROUP HSES & QUALITY BOARD OF DIRECTORS INVESTMENT TENDER COMMITTEE COMMERCIAL HEAD, DOMESTIC SALES HEAD, GROUP SUPPLY CHAIN HEAD, EXPORT SALES HEAD, RAW SUGAR PROCUREMENT HEAD, GROUP COMMERCIAL CORPORATE SERVICES HEAD, GROUP IT HEAD, CORPORATE COMMUNICATIONS HEAD, GROUP PROCUREMENT HEAD, Legal Affairs HEAD, Corporate Strategy & Investor RelationS HEAD, GROUP HUMAN RESOURCES/ADMIN SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 25
Our Achievements Halal Jabatan Kemajuan Islam Malaysia (JAKIM) • To be recognised as Halal brand and to meet customer requirements • To identify non-halal hazards and provide a measure to control them MSM Johor/MSM Prai/Sungai Buloh Warehouse (SBW) Kosher Kushrut London Beth Din (KLBD) • To be recognised as Kosher brand • To meet the requirement of Kosher recognised customers MSM Johor/MSM Prai ISO 9001 (Quality Management System) • To ensure the quality of the management system within the Company and to meet customer requirements • To cultivate continuous improvement within the organisation MSM Johor/MSM Prai/SBW HACCP (Hazard Analysis and Critical Control Point) • To demonstrate Company’s commitment to ensure the safety and quality of the product MSM Johor/MSM Prai OUR OTHER ACHIEVEMENTS ISO 45001 (Occupational Health and Safety Management system) • MSM Prai Berhad and Sungai Buloh Warehouse (SBW) certified for the ISO 45001 certification related to Occupational Health & Safety (OH&S) NACRA 2021 Excellence Awards • Companies with less than RM2 billion in Market Capitalisation (Silver) MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE 26
ISO 22000 (Food Safety Management System) • To enhance food safety management system and product quality • To meet customer requirements MSM Johor/MSM Prai FSSC 22000 (Food Safety System Certification) • To meet growing customer requirements from GFSI recognised supplier and to ensure that the food safety hazards are able to be identified MSM Johor/MSM Prai Product Certification Scheme SIRIM • To demonstrate that the products are produced in compliance with national and international standards, eliminating the need of further testing by purchaser or consumer • To provide an independent assurance that products are manufactured under an effective system of testing, supervision and control which should result in improved production efficiency and reduced wastage and rejects MSM Prai GMP (Good Manufacturing Practice) • To establish a system for ensuring that the products are consistently produced according to a quality standard MSM Johor Household E-waste Hero Competition • MSM Prai Berhad - Third Place MSM Prai Berhad Collaborates with Department of Environment, Penang • Signed a Certificate of Collaboration with the Department of Environment, Penang NACRA 2021 Special Awards • Best Annual Report in Bahasa Malaysia (Silver) SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 27
2021 KEY EVENT HIGHLIGHTS MSM’s Group Chief Executive Officer (GCEO), Tuan Syed Feizal Syed Mohammad as well as MSM’s Chief Financial Officer (CFO), Encik Ab Aziz Ismail, welcomed the StockPick2U team for an interview to speak on the company’s business as a whole as well as any future expansion plans. The interview helped to give a better understanding to the investing community on the future prospects of MSM. MSM Malaysia Holdings Berhad (MSM) and FGV Integrated Farming Holdings Sdn Bhd (FGVIF) entered into a binding term sheet on the respective disposal and acquisition of a 100% stake of MSM’s wholly-owned subsidiary, MSM Perlis Sdn Bhd (MSM Perlis). MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor) conducted a corporate social responsibility programme to provide meals and hand sanitisers to 70 hardworking frontliners on duty at Vaccination Centre Dewan Bandar Seri Alam, Masai. Five volunteers from MSM Johor helped purchase, pack and deliver the items to the vaccination centres. 22 MARCH 2021 30 APRIL 2021 12 - 14 JULY 2021 Group CEO interviewwith STOCKpick2U FGVIF Acquires MSM Perlis for FGV Chuping AgroValley MSM Johor Assists Frontliners At Vaccination Centre WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 28
MSM Prai Berhad (MSM Prai) conducted their rounds of delivering items such as biscuits, instant premix drinks, mineral water and tetra pack drinks to approximately 380 recipients involving frontliners on duty at road block areas as well as at 3 PPVs in Penang, namely at Dewan Seberang Perai Arena, Dewan Millenium Kepala Batas and Tapak Ekspo Seberang Jaya. Volunteers among MSM Prai employees joined hands to assist the one-day corporate social responsibility programme. The programme reflects MSM’s commitment in giving back to the society and taking part in the collective endeavour to fight against the pandemic. 19 JULY 2021 MSM Prai Assists Frontliners AtVaccination Centres & Road Block Areas Another helping hand initiative was mobilised by MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor) involving contribution to two vaccination centres (PPV) that was held on 22 July 2021 at Persada Johor International Convention Centre (Persada), Johor Bahru and on 29 July 2021 at Dewan Muafakat Johor, Taman Adda. MSM Johor contributed food items such as biscuits, mineral water and instant premix drinks to 321 volunteers and frontliners on duty at Persada as well as 80 other recipients from Dewan Muafakat Johor, Taman Adda. 22 & 29 JULY 2021 MSM Johor Provides Assistance toTwoVaccination Centres MSM Malaysia Holdings Berhad is committed to ensure all of its employees, including contractors, are fully vaccinated, echoing the Government’s call to expedite vaccination towards reaching herd immunity in curbing the spread of COVID-19. All employees received their vaccination dose at the Malaysia International Trade and Exhibition Centre (MITEC) through the Public-Private Partnership COVID-19 Industry Immunisation Programme (PIKAS). 27 JULY 2021 MORETHAN 1,000 MSM EMPLOYEES VACCINATEDTHROUGH PIKAS SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 29
2021 KEY EVENT HIGHLIGHTS Surau Al-Munawarrah Committee from MSM Prai Berhad organised a Food Basket Programme involving contribution to families within the community. MSM Malaysia Holdings Berhad announced that its shareholders have approved the disposal of the entire equity interest in MSM Perlis Sdn Bhd, a wholly-owned subsidiary of MSM to FGV Integrated Farming Holdings Sdn Bhd (FGVIF). The disposal of the entire equity interest in MSM Perlis resulted in a gain of RM91.81 million. 4 AUGUST 2021 15 SEPTEMBER 2021 MSM FOOD BASKET PROGRAMME MSM’S EGMAPPROVES STRATEGIC MONETISATION OF NON-CORE ASSETS In conjunction with the National Environment Day 2021, MSM Malaysia Holdings Berhad (MSM Group) through its wholly-owned subsidiary, MSM Prai Berhad (MSM Prai) signed a Certificate of Collaboration (COC) with Penang Department of Environment (DOE) enabling green initiative in preserving and conserving the environment. The COC was signed by MSM Group Chief Executive Officer, Syed Feizal Syed Mohammad while Penang DOE was represented by their Director, Sharifah Zakiah Syed Sahab. 13 OCTOBER 2021 MSM PLANTS 700 MANGROVETREES, COMMITTEDTO ESG IN OPERATIONS & ENVIRONMENTAL SUSTAINABILITY WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 30
MSM Group established the MSM Foldies Cycling Club for employees who are folding bicycle enthusiasts to foster stronger friendship, network and healthy lifestyle. The Inaugural Putrajaya Ride saw promising numbers of participation. 7 NOVEMBER 2021 Establishment ofthe MSM FOLDIES CYCLING Club Representatives from FELDA, led by the Board of Directors’ Chairman, YB Dato’ Seri Haji Idris Jusoh, accompanied by FELDA’s management team were welcomed by MSM Group’s GCEO, Tuan Syed Feizal Syed Mohammad to MSM’s head offices for a session to provide updates on MSM’s current performance as well as its moving forward plans. 27 OCTOBER 2021 CourtesyVisit by Federal Land Development Authority (FELDA) MSM’s Group CEO received a FELDA WAQAF Gold Membership certificate from YAB The Prime Minister of Malaysia, YAB Dato’ Sri Ismail Sabri at the FELDA WAQAF Launching Ceremony at Menara Felda. 12 NOVEMBER 2021 LAUNCH OFWAQAF FELDA SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 31
MSM Prai (Sungai Buloh Warehouse) and MSM Logistics Sdn Bhd contributed RM10,000 to Masjid Nurul Iman Kampung Sri Indah B, Sungai Buloh, to be used for the construction of the pulpit and the mihrab of the mosque. The zakat wakalah contribution was presented by Mr Hasnawi Dawi, Head of Operations MSM Prai (SBW), to the Chairman of the Mosque, Tuan Haji Salleh bin Haji Yaakob and Secretary of the Mosque, Mr Zulkifli Ahmad. The 17th Agreement Signing Ceremony between MSM Prai Berhad and the Malayan Sugar Factory Employees’ Union was held in Kuala Lumpur to express the commitment between MSM Group’s management as well as the union to ensure that the interests of both parties are safeguarded and continue to work closely in carrying out responsibilities and roles for the sake of MSM Group. The agreement was signed by MSM’s management including GCEO, Syed Feizal Syed Mohammad as well as the union’s President, Syed Rosdi Syed Asmi, among others. 24 NOVEMBER 2021 2 DECEMBER 2021 CONTRIBUTIONTO Masjid Nurul Iman Kampung Sri Indah B, Sungai Buloh Agreement Signing Ceremony with MSM Prai and Malayan Sugar Factory Employees’ Union MSM Prai successfully bagged third place in the Industry category of the Household E-Waste Collection Hero Competition with approximately 500kg of electric and electronic waste (e-waste) collected within five days by more than 400 MSM Prai employees. The event was held in conjunction with the National Environment Day 2021, and was organised by Penang Department of Environment in collaboration with Majlis Bandaraya Seberang Perai and Majlis Bandaraya Pulau Pinang. 19 NOVEMBER 2021 Stepping up Green Awareness 2021 KEY EVENT HIGHLIGHTS WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 32
MSM Malaysia Holdings Berhad’s Finance department had a corporate social responsibility event as part of their inter-department activity by distributing food to the homeless at Pusat Transit Gelandangan Kuala Lumpur to ensure that they get sufficient sustenance to be able to lead a healthy lifestyle. 11 DECEMBER 2021 Food Donation at PusatTransit Gelandangan Kuala Lumpur MSM Sugar Refinery (Johor) Sdn Bhd welcomed the Malaysian Investment Development Authority (MIDA) team lead by Puan Nor Aswana, the Deputy Director of Investment Compliance Division to the Johor refinery plant for a visit to get a better grasp and understanding on the products offered by MSM as well as the inner workings of the plant’s facilities and its production line. 15 DECEMBER 2021 Malaysian Investment Development Authorityvisit to MSM Sugar Refinery (Johor) Sdn Bhd MSM Group held a management event involving representatives from each department as well as representatives from each subsidiary to have an open discussion on MSM’s performance during the year coupled with a strategic brainstorming session for MSM’s future plans, initiatives and goals for 2022 at Mandarin Oriental Hotel, Kuala Lumpur. 16 DECEMBER 2021 MSM Strategic Management Retreat 2022 Representatives from SIRIM Berhad, led by Encik Mohd Azanuddin bin Salleh, the Senior VP of SIRIM Industrial Research, were greeted by MSM Malaysia Holdings Berhad’s Board of Directors’ Chairman, Datuk Syed Hisham Syed Wazir, at MSM head offices as a courtesy visit in which they had the opportunity to learn more about MSM and its business as well as to have an effective discussion to identify any collaborative opportunities in the future that could potentially be beneficial for both parties. 22 DECEMBER 2021 CourtesyVisit by SIRIM Berhad SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 33
MSM INTHE NEWS WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 34
SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 35
MSM INTHE NEWS WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 36
SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 37
MSM INTHE NEWS WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 38
SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 39
5-YEAR FINANCIAL HIGHLIGHTS 2021 2020 2019 2018 2017 RM’000 RM’000 RM’000 RM’000 RM’000 Revenue 2,259,698 2,184,463 2,006,911 2,214,376 2,641,529 Cost of Sales (2,098,744) (2,016,920) (1,992,260) (2,016,022) (2,563,490) Gross Profit 160,954 167,543 14,651 198,354 78,039 Other Operating Income 9,897 1,566 1,843 1,401 8,685 Selling and Distribution Expenses (28,293) (26,101) (25,272) (19,762) (19,741) Administrative Expenses (66,106) (62,374) (73,561) (71,817) (61,122) Impairment of Financial Assets, Net (1,635) (6,565) (4,583) (3,018) - Reversal of Impairment/(Impairment) of Non-Financial Assets 16,427 11,775 (138,784) (1,390) - Other Operating Expenses (7,682) (14,232) (747) (44) (7,005) Other Gains/(Losses), Net 41,998 (2,816) 4,999 (2,887) (1,223) Profit/(Loss) from Operations 125,560 68,796 (221,454) 100,837 (2,367) Finance Income 2,587 3,835 4,032 4,057 5,293 Finance Costs (47,045) (36,784) (82,128) (38,508) (22,500) Profit/(Loss) Before Zakat and Taxation 81,102 35,847 (299,550) 66,386 (19,574) Zakat (1,000) (1,486) (14) (1,500) - Taxation (43,487) (30,498) 11,074 (27,509) (16,767) Profit/(Loss) for the Financial Year from Continuing Operations 36,615 3,863 (288,490) 37,377 (36,341) Discontinued Operations Profit/(Loss) from Discontinued Operations, Net of Tax 88,738 (75,091) (11,279) (1,717) - Profit/(Loss) for the Financial Year 125,353 (71,228) (299,769) 35,660 (36,341) FINANCIAL RATIOS 2021 2020 2019 2018 2017 RM’000 RM’000 RM’000 RM’000 RM’000 Return on Shareholder’s Equity 7.32% (4.50%) (18.10%) 1.82% (1.90%) Return on Total Assets 4.4% (2.6%) (10.1%) 1.0% (1.1%) Debt Equity Ratio 0.7 0.8 0.8 0.9 0.8 Dividend Cover 5.9 - - - (1.3) Total Assets 2,870,839 2,770,280 2,980,766 3,655,342 3,404,782 Net Assets Per Share 2.44 2.25 2.36 2.79 2.74 Earnings/(Loss) Per Share (Sen) 17.83 (10.13) (42.64) 5.08 (5.17) WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 40
STATEMENT OF FINANCIAL POSITION 2021 2021 1,255,235 (45%) 718,255 (26%) 718,255 (25%) 1,220,510 (42%) 92,642 3% 4,942 (0%) 4,545 (0%) 83,036 (3%) 99,708 4% 686,397 (25%) 692,082 (24%) 22,031 (1%) 625,112 (23%) 176,874 (6%) 302,227 (11%) 47,010 (2%) 39,911 (1%) 171,458 (6%) 313,443 (11%) 47,152 (2%) 0 (0%) 622,185 (22%) 227,177 (8%) 907,100 (33%) 793,056 (28%) 307,243 (11%) 274,485 (10%) 421,059 (14%) 195,921 (7%) 11,092 (0%) 7,320 (0%) 194,775 (7%) TOTAL ASSETS (RM ‘000) TOTAL EQUITY AND LIABILITIES (RM ‘000) Property, Plant & Equipment Right-of-use Assets Other Assets Intangible Assets Receivables Inventories Cash and Cash Equivalents 2020 2020 2,770,280 2,870,839 2,770,280 2,870,839 Share Capital Lease Liabilities Other Reserves Retained Earnings Deffered Tax Liabilities Payables and Other Liabilities Derivative Financial Liabilities Loan Due to Related Company Borrowings SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 41
QUARTERLY FINANCIAL PERFORMANCE First Second Third Fourth Quarter Quarter Quarter Quarter 2021 RM’000 RM’000 RM’000 RM’000 Continuing Operations Revenue 514,935 554,100 548,646 642,017 Profit from Operations 52,179 30,491 41,987 903 Profit/(Loss) Before Zakat and Taxation 43,074 21,481 22,376 (5,829) Profit/(Loss) from Continuing Operations 30,107 13,277 9,392 (16,161) Discontinued Operations Profit from Discontinued Operations 1,079 190 87,469 - Profit/(Loss) Attributable to Equity Holders of the Company 31,186 13,467 96,861 (16,161) Basic Earnings/(Loss) Per Share (Sen) 4.43 1.92 13.78 (2.30) First Second Third Fourth Quarter Quarter Quarter Quarter 2020 RM’000 RM’000 RM’000 RM’000 Continuing Operations Revenue 510,844 448,735 594,553 630,331 (Loss)/Profit from Operations (14,509) (13,192) 26,789 69,708 (Loss)/Profit Before Zakat and Taxation (27,253) (25,271) 14,768 73,603 (Loss)/Profit from Continuing Operations (34,291) (19,417) 920 56,651 Discontinued Operations Loss from Discontinued Operations (414) (2,137) (72,131) (409) (Loss)/Profit Attributable to Equity Holders of the Company (34,705) (21,554) (71,212) 56,243 Basic (Loss)/Earnings Per Share (Sen) (4.94) (3.07) (10.13) 8.00 WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 42
STATEMENT OF VALUE ADDED 2021 2020 RM’000 RM’000 Value Added Revenue 2,259,698 2,184,463 Purchase of Goods and Services (2,031,797) (2,028,902) Value Added by the Group 227,901 155,561 Other Operating Income 99,391 2,185 Other Gains/(Losses), Net 41,998 (2,816) Reversal of Impairment of Non-Financial Assets 16,427 13,537 Impairment of Financial Assets, Net (1,619) (6,565) Finance Income 2,587 3,835 Finance Cost (47,045) (36,784) Value Added Available for Distribution 339,640 128,953 Distribution To Employees Employment Cost 86,959 79,769 To Government/Approved Agencies Taxation and Zakat 44,487 31,984 To Shareholders Dividends - - Retained for Reinvestment and Future Growth Depreciation and Amortisation 82,841 88,428 Retained Profits/(Losses) 125,353 (71,228) Total Distributed 339,640 128,953 SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 43
SEGMENTAL HIGHLIGHTS REVENUE 2021 (RM MILLION) Malaysia Wholesale Asia Industries Australia Molasses (Domestic & Export) Europe Export Others Revenue by Region Revenue by Segment 1,754 1,715 REVENUE 2020 (RM MILLION) Malaysia Wholesale Asia Industries Australia Molasses (Domestic & Export) Europe Export Others Revenue by Region Revenue by Segment 384 353 6 6 98 102 18 8 18 16 506 467 842 738 894 963 WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 44
SALES HIGHLIGHTS 2021 2020 REVENUE (RM MILLION) 2020 2021 SALESVOLUME (TONNES) 1,024,603 941,749 Wholesale Industries Export 2,260 2,184 842 894 506 18 738 963 467 16 327,823 295,578 458,397 270,628 367,825 246,101 Note: 1. Sales volume excludes sales of molasses. Wholesale Industries Export Molasses (Domestic & Export) SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 45
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