Fraser & Neave Holdings Bhd Annual Report 2021

MEETING OUR CHALLENGES Challenge Keeping employees safe from COVID-19 Interrupted flow of raw materials Increased cost of goods due to cost of commodities & logistics Intensifying competition & price wars After a relatively subdued FY2021, F&B Malaysia looks forward to some exciting product launches in FY2022. We will also be launching a new revamped e-commerce online portal, F&N Life 2.0, which will be an upgrade from our current F&N Life platform; incorporating all the learnings gained to date to o$er a better experience for consumers. There are also plans to further grow Sri Nona’s basket of products, and to start the process of integrating manufacturing, distribution, and export activities within F&B Malaysia. While prospects for FY2022 are looking up, the team will remain cautious recognising that it will take time for most retail businesses and individual consumers to recover fully from the pandemic. Given the current landscape, the team will continue to monitor the market carefully and respond in a manner that is sensitive to customers’ and consumers’ needs. PROSPECTS Results • Maintained business continuity at all levels • Production was su!cient to meet demand • Met commitments to customers • Further strengthened relationships with suppliers • Achieved cost and operational e!ciencies • Maintained market leadership in isotonic, sweetened condensed milk and evaporated milk segments* • Grew our market share in the entire canned milk segment • Catapulted to top spot in the RTD Milk Tea category with our newly launched RTD F&N Teh Tarik * Based on Retail Index Service for the 12 months ending July 2021 in Total Malaysia. (©2021 Nielsen Consumer LLC.) Mitigation E#orts • Implemented all relevant measures to protect employees Read more in “Supporting COVID-19 Recovery” • Improved stock management • Helped some suppliers obtain licence to operate during MCO • Hedging policy to smooth out the impact of any increase of raw material prices • Compensate by reducing overheads through automation, digitalisation, and organisational restructuring • Defend our turf by ensuring we continue to delight our consumers with quality, taste, and value • Enhanced focus on product & packaging innovation to meet customers’ expectations Management Discussion & Analysis 079 Fraser & Neave Holdings Bhd ! Annual Report 2021