MSM Malaysia Holdings Berhad Annual Report 2021

2021Turnaround through asset optimisation 2022 Resilient with sales volume growth 2023 Pacing growth with integration and strength • Capacity optimisation for lower production cost • Assess MSM Prai rejuvenation life extension programme • Improve Average Selling Price and hedging (NY11, freight, energy, forex) • Consolidate wholesalers & territory • Enhance market share • Direct contracts with Modern Trade, Big Industries, major SMIs • Grow export - Vietnam, China, Singapore, South Korea etc • Grow value added products (VAP) such as Liquid Sugar, Fine Syrup and Premix for domestic and export markets • Debt rationalisation - monetise non-core assets to pare down borrowings • Steady production in MSM Johor towards break-even • MSM Prai rejuvenation life extension programme Phase 1 • Enhance existing and new export markets • Expand VAP into new markets and products • Income diversification from sugar-related products • Step up ESG, reduce GHG emissions, renewable energy such as solar and explore biomass energy-saving project • Digitalisation and IR4.0 • Expand healthy variant products segment i.e. Go ½, Go Natura • Explore strategic partnership to strengthen export segment and further unlock synergistic value • MSM Johor achieves UF and Yield maturity with downstream integration • MSM Prai rejuvenation life extension programme Phase 2 • Value accretive vertical integration with downstream • Maximising production capacity for export • Establish distributorship in target ASEAN markets • Expand logistic capabilities sea and land • Explore capacity growth overseas via offtake with MSM premium sugar Quality Management • Explore business diversification into food related business • Explore growth via strategic M&A in new food business value chain CORPORATE STRATEGY AND BUSINESS PLAN REVIEW 3-YEAR STRATEGIC PLAN MSM is currently guided by a 3-year Strategic Plan through which “Turnaround Through Asset Optimisation” was initiated in FY2021. This was supported by the Business Plan 2021 (BP21) and continues to be supported by the Business Plan 2021-2023 (BP23) going forward. We also worked on ramping up our ESG journey during the year, as a step towards meeting FTSE4Good Index standards and ensuring improved data gathering across the Group. Sustainability initiatives and performance are detailed in the Sustainability Report on page 118. In FY2021 the focus of Turnaround was primarily on the business front as we worked to maximise our capabilities while seeking ways to expand our market demand and enhance our liquidity. WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 70