Fraser & Neave Holdings Bhd Annual Report 2021

A key focus area has been to hasten the nation’s recovery from the pandemic by supporting the Government’s e$orts in vaccinating the country. We encouraged our employees and those of our trade partners to be vaccinated through our employees’ vaccination programmes; and as of August 2021, we reached 90 per cent full vaccination at the workplace. We also supported the government’s vaccination programme via a #HidratkanDiriSihatkanBadan campaign, which saw F&NHB distribute one million bottles of the nation’s preferred isotonic beverage, 100PLUS, at major vaccination centres. This was our way of promoting the immunisation programme while ensuring people maintained optimal hydration throughout the critical period. Further nurturing our stakeholder ecosystem, we have been motivated to show our gratitude for the tireless devotion of the country’s frontliners and support communities that are most a$ected by the pandemic. Since its outbreak in March 2020, we have distributed over two million products to various beneficiaries nationwide. During the month of Ramadhan this year, F&N products were distributed via our ‘ Keberkatan Plus Plus’ programme to 20,000 beneficiaries, including B40 families and 100 underprivileged homes. In Thailand, we took care of our community of 20,000 hawkers by giving them F&N products to help them tide over the year. As a food and beverage (F&B) manufacturer, our consumers are our raison d’etre – hence ensuring we live up to our brand promise of ‘Pure Enjoyment. Pure Goodness’ will always be a top priority. Along with greater health-consciousness, we have been placing increasing focus on healthier products. Among others, we have invested significantly into lowering the sugar content of our portfolio without compromising on taste. This year, with the launch of F&N Sparkling, F&N Bandung and est Cola Brown Sugar in Malaysia, as well as BEAR BRAND GOLD Acerola Cherry and a 50 per cent lower-sugar, low-fat F&N Magnolia Choc Malt Milk in Thailand, we now have no less than 69 products endorsed with the Healthier Choice logo. E$orts to optimise our product portfolio are integral to maximising our profits, hence also shareholder value creation. And it pleases me to share that, despite the tough operating environment, the thought that went into our products, our route-to-market and marketing e$orts all combined to enable us to o$er the same dividends that we did the previous financial year. In June, we paid out an interim single-tier dividend of 27.0 sen per share, translating into RM99 million. At our upcoming annual general meeting (AGM), the Board will be proposing a final dividend of 33.0 sen per share. In respect of ongoing SOPs, this year’s AGM will be held virtually, as was the AGM for FY2020. Finally, my account of value creation would not be complete without also mentioning a programme close to my heart: The F&NHB Chairman’s Award. This is presented annually to children of employees who achieve outstanding academic and extra-curricular performance. And it gives me great pleasure to share that, in 2021, we handed out cash prizes totalling RM218,100 to 73 deserving children. CREATING VALUE I t r u l y be l i eve t ha t ever y c l oud has a s i l ver l i n i ng . A l t hough t he pandemi c severe l y di srupted bus i nesses ever ywhere, i t a l so led to a great dea l of i nt rospec t ion and t he rea l i sat ion t hat corporat ions l i ke F&NHB are par t of wider ecosys tems on wh i ch we are dependent . Our sus t a i nabi l i t y res t s on t he sus t a i nabi l i t y of t h i s ecosys tem. Acknowledgi ng t h i s , we have spen t a grea t dea l of t ime and resources dur i ng t he year bu i l d i ng t he res i l ience of our ecosys tem by car i ng and creat i ng va lue for t he peop le wi t h i n i t . And it pleases me to share that, despite the tough operating environment, the thought that went into our products, our route-to- market and marketing efforts all combined to enable us to offer the same dividends that we did the previous financial year. 026 CHAIRMAN’S MESSAGE