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ANNUAL REPORT
2018

KULIM (MALAYSIA) BERHAD
INTEGRATED ANNUAL REPORT 2018

The theme for Kulim’s Integrated Annual Report 2018 “Strengthening Core Competencies”
communicates Kulim’s effort in implementing sound strategies and delivering innovative solutions while
remaining focused on the next course after having defined new perspectives. These initiatives will
propel the Group towards a progressive and positive business future. Leveraging on our diverse
business offerings, we are able to realise growth potential and optimise value for all. We are
passionate and committed in achieving excellence and attaining exemplary results while
spearheading the Group towards a more promising and sustainable future.

"STRENGTHENING CORE COMPETENCIES"


PERFORMANCE FOR THE YEAR 2018

REVENUE

RM1.38

BILLION

9.15%

PBT

RM71.04

MILLION

106.39%

AVERAGE SELLING PRICE

CPO

(FY 2018)

RM2,327

-18.42%

(FY 2017)

RM2,852

PK

(FY 2018)

RM1,792

-26.16%

(FY 2017)

RM2,427

DIVIDEN TO SHAREHOLDERS


RM150

MILLION



GROSS GEARING
RATIO

0.50

NET GEARING
RATIO

0.43

MESSAGE FROM THE CHAIRMAN



DATO' KAMARUZZAMAN ABU KASSIM

CHAIRMAN NON-INDEPENDENT
NON-EXECUTIVE DIRECTOR

"Dear Stakeholders"

The year 2018 has been another eventful one for Kulim (Malaysia) Berhad (“Kulim”), where the Group once again proved its fundamental strengths by recording yet another commendable performance amidst the significant headwinds faced by the industry.

Despite the turbulent business environment, Kulim continues to prove its resilience in weathering such circumstances, thanks to well-executed business strategies planned by our management over the past several years. Being a subsidiary of Johor Corporation (“JCorp”) , it is with pride that our committed team continue to strive in delivering value to all our stakeholders, despite tough business conditions.



MANAGEMENT DISCUSSION & ANALYSIS

"Dear Shareholders"

The year 2018 could be best described as the year of testimony of our sustainability and strategic plans.

THE PLANTATION SEGMENT REMAINED OUR MAIN CASH COW, CONTRIBUTING RM843.68 MILLION OR 60.80% OF THE GROUP’S REVENUE.

We were able to deliver RM150 million dividend to our shareholders.



Left:

ZULKIFLY ZAKARIAH

EXECUTIVE DIRECTOR (ED)

Right:

SHAHROM MOHD SAAD

HEAD OF FINANCE DIVISION (HOF)


SEGMENT REVIEW

PLANTATION

The year 2018 was marked with challenges for Kulim’s Plantation Segment with lower palm oil market prices experienced by the Group. In the year under review, our Malaysian operations produced a total of 919,844 tonnes of Fresh Fruit Bunches (“FFB”), a 7.57% decreased from 995,129 tonnes in 2017.

OIL & GAS

FY 2018 was a satisfactory year for Kulim’s Oil and Gas (“O&G”) Division, as it posted a PBT of RM87.14 million compared to a LBT of RM134.50 million in FY 2017. The Division recorded an increased in revenue of RM469.92 million, representing a 14.81% higher compared to RM409.32 million achieved in the previous year.

INTRAPRENEUR VENTURES

The Intrapreneur Venture (“IV”) Division was established as one of Kulim’s principal growth thrusts and plays an important role in the Group’s revenue and profit contributions, thus enhancing shareholder’s value.