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DIGITAL
ANNUAL REPORT
2017
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KULIM'S INTEGRATED
ANNUAL REPORT 2017

Focused on continuously delivering
value, we are committed and
determind to large ahead equipped
with sound business acumens and
solid strategies

"DEFINING NEW PERSPECTIVE"


PERFORMANCE FOR THE YEAR 2017

REVENUE

RM1.54

BILLION

4.39%

PBT

RM43.33

BILLION

27.49%

AVERAGE SELLING PRICE

CPO

(FY 2017)

RM2,852

12.63%

(FY 2016)

RM2,532

PK

(FY 2017)

RM2,427

1.68%

(FY 2016)

RM2,387

DIVIDEN TO SHAREHOLDERS


RM50

MILLION



NET GEARING
RATIO

0.33

NET GEARING
RATIO

0.41

MESSAGE FROM THE CHAIRMAN

"Dear Stakeholders"

Throught our long history, the overarching ambition of Kulim (Malaysia) Berhad ( "Kulim" ) has always been to deliver value all its stakeholders. Moving foward from the Selective Capital Reduction and Repayrement ( "SCR") exercise completed on 4 August 2016, we have taken steps to recalibrate and reinvigorate the businesses we are in.
As part of Johor Corporation Group ("JCorp"), our values are also synergistic with the ambition of our parent company in terms of sustainable growth, creating value through innovation, expansion into new income streams and forging entrepreneurship principles. It is notable that in an increasingly challenging and rapidly changing environment, Kulim has been resilient to weather all circumstances with sound business acumens and solid strategies, hence, the theme for this year’s Integrated Annual Report ("IAR") is "Defining New Perspective".

DATO' KAMARUZZAMAN ABU KASSIM

CHAIRMAN NON-INDEPENDENT
NON-EXECUTIVE DIRECTOR



MANAGEMENT DISCUSSION & ANALYSIS

"Dear Shareholders"

In a year where we still faced significant headwinds, FY 2017 was a mixed bag of results for Kulim. Our core Plantation Division benefitted from more favourable weather conditions and improved commodity prices in 2017.

The Plantation Segment remained our main cash cow, contributing RM 1.03 billion or 67% of the Group’s revenue.



Left:

SHAHROM MOHD SAAD

HEAD OF FINANCE DIVISION (HOF)

Right:

ZULKIFLY ZAKARIAH

EXECUTIVE DIRECTOR (ED)


SEGMENT REVIEW

PLANTATION

The year under review was a favourable one for Kulim’s core Plantation Segment. Recovering from the El Nino phenomenon experienced in 2016, FFB production rebounded to 995,129 tonnes in 2017. The prices of CPO also began to trend upwards in the first quarter of the year before soaring to a peak of RM2,900 per tonne in the third quarter of 2017. In the fourth quarter of the year, the bullish trend was capped by record high soybean

OIL & GAS

FY 2017 was a challenging one for Kulim’s O&G Division. The volatility in crude oil prices and a weaker local currency took its toll on operating performance. Revenue was posted at RM419.71 million, which is a 32.97% decline compared to RM626.17 million achieved the previous year. From a Profit Before Tax ("PBT") of RM21.03 million recorded in 2016, the Division has slipped into the red with a Loss Before Tax ("LBT") of RM130.28 million.

INTRAPRENEUR VENTURES

The Intrapreneur Ventures ("IV") Division was established as one of Kulim’s principal growth thrusts and plays an important role in the Group’s Balanced Business Strategy. With some 15 companies under its wing, the Division is involved in a diverse range of businesses, including support operations for plantations, O&G, biofertilizers, agricultural machinery, as well as IT-related and insurance-broking services.

© 2018 Kulim (Malaysia) Berhad