Fraser & Neave Holdings Bhd Annual Report 2021

CREATING VALUES: FOR US & OUR STAKEHOLDERS We have always taken pride in being innovative in marketing, which to us is about connecting in an authentic manner with our customers and consumers. In Thailand, we have established strong ties with hawkers by supporting them with collaterals and decorations that are both functional and attractive, thus also increasing our brand visibility. We maintain close contact with these hawkers via a Line app which, to date, has attracted close to 20,000 members. For consumers, our focus has shifted from advertising to increasing brand loyalty through value-add promotions. We are also engaging more meaningfully with consumers on social media. For example, in Malaysia, we presented 100PLUS-sponsored virtual workouts to help our consumers stay active during the MCO. Almost all our product launches this financial year were also carried out on social media, accompanied by value-add promotions or activities. REIMAGINING THE WAY WE WORK BUILDING OUR FOURTH PILLAR OF GROWTH MEETING OUR CUSTOMERS AND CONSUMER NEEDS At the onset of the pandemic in 2020, the Group was conscious that COVID-19 disruptions would permanently change our market environment. This has compelled us to reset and ‘reimagine’ our business strategies in preparation for the future. We undertook several ‘Reimagine’ projects geared towards building new capabilities and revenue streams; uplifting our productivity and profit; while improving our cost-e!ciency. Values to be extracted from these projects would be instrumental in delivering sales and cost savings in future. At the same time, we reorganised our structure to be aligned with the business needs and opportunities presented by COVID-19 and digital technology. This step-change will deliver a more efficient, agile and focused organisation and set a foundation of sustainable growth for the business. The turmoil caused by the pandemic underlined the urgency of collective action to address increasingly critical global issues. The Group has always sought to be environmentally and socially responsible. This year, we refreshed our materiality matrix to better reflect current global imperatives. We have also set new sustainability commitments for 2025 and entered new partnerships to further strengthen our environmental, social and governance (ESG) platforms. Amidst COVID-19 disruptions, we have remained steadfast in pursuing our long-term strategic priorities. With the acquisition of Sri Nona Companies in January 2021, we have diversified into food and become leaders in the ketupat and halal oyster sauce categories. Our latest investment not only adds an established Malaysian household food brand to the Group’s portfolio but will also serve as a platform to expand into more halal food segments and to meet the rising demand for convenience and ready-to-eat food products. We are excited about the potential of building Halal Packaged Food into another growth pillar like Exports, which now generates almost RM900 million in revenue for the Group. With our robust R&D capabilities, we are confident that our new assets will help us grow our halal food categories, complement our o$erings, introduce more innovative products, and increase our profit margin in the long run. Sri Nona contributed positively in FY2021, and we believe there is much more potential to be realised. Leveraging partnerships within the Group, we seek to expand Sri Nona’s route-to-market coverage and create supply chain synergies. In fact, since October this year, we have started to distribute Sri Nona products via F&N Beverages Marketing channels in areas not covered by existing distribution. We are also looking into our production capacity to support the expansion of Sri Nona’s product range. We are excited about the potential of building Halal Packaged Food into another growth pillar like Exports, which now generates almost RM900 million in revenue for the Group 032 CHI EF EXECUT IVE OFF ICER’S STATEMENT