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Our business model is built across our business segments which actively interact and integrate with one another, thus ensuring resources are utilised to the fullest. We actively manage our activities and their impact to ensure we enhance the positive and minimise the negative outcomes of our business model, thereby sustaining values for all stakeholders.

PERFORMANCE BY CAPITAL

When making decisions on how to manage and grow our business, we take into account the resources and relationships that are critical to our ability to create values. We refer to these as the six capitals. Inputs of each are needed for the effective production and delivery of Kulim’s products and services, thereby generating values for all our stakeholders.

We continue to allocate our capital and resources efficiently to create long-term values for stakeholders. This requires making trade-offs, assessing the availability and quality of capital inputs, balancing the short and long-terms plans and making tough decisions. Below are the primary trade-offs we made and the rationale behind our decisions.



FINANCE CAPITALS



CREATING VALUE FOR OUR STAKEHOLDERS

Capitals 2020 2019
  • EBITDA (RM'000)
(47,949) 183,110
  • Current Ratio (Times)
0.99 0.88
  • Nett Assets (RM'000)
2,725,194 3,232,931

ACTIONS TO ENHANCE OUTCOMES
  • Ensure robust financial capital management
  • Practise stringent cost optimisation
  • Heighten risk management and solidify our governance practices
  • Assess various funding alternatives for our growth initiatives

TRADE-OFFS

Increasing our financial capital is key to sustaining growth across all other capitals, such as manufactured capital, intellectual capital and human capital. It also allows for investment in operations to promote resource efficiency, thus reducing negative impacts on other capitals.



NATURAL CAPITAL



CREATING VALUE FOR OUR STAKEHOLDERS

Capitals 2020 2019
  • Carbon Emissions
    (MT CO2e)
483,000 482,000
  • Palm Kernel
    Shells Production
    (MT)
98,362 90,912
  • Biogas Production
    (m3)
6,930,104 3,781,857

ACTIONS TO ENHANCE OUTCOMES
  • We consume both renewable and non-renewable energy to generate electricity to optimise the use of renewable resources
  • We offset emissions by planting oil palms and setting aside areas for conservation
  • Our biogas plants use methane captured from POME to generate renewable energy, which we use to power our mills and surrounding estates

TRADE-OFFS

Addressing the impact to natural resources from our business processes requires utilisation of our financial, manufactured and human capitals. Various green initiatives are aimed at reducing our impact on the environment.




MANUFACTURED CAPITAL



CREATING VALUE FOR OUR STAKEHOLDERS

Capitals 2020 2019
  • Sales of Palm
    Shells (tonne)
20,338 23,014
  • Sales of Palm
    Fibre (tonne)
13,006 9,170

ACTIONS TO ENHANCE OUTCOMES
  • We utilise biogas produced for power generation and flaring
  • Our palm kernel shell and palm fibre are sold for use as renewable sources of energy

TRADE-OFFS

We fully utilise POME, a waste-product of CPO that releases significantly more methane gas compared to other gases. However, the high organic content of POME carries great potential for our biogas production, a source of renewable energy used to improve plant performance and pursue our growth projects.


INTELLECTUAL CAPITAL



CREATING VALUE FOR OUR STAKEHOLDERS

Capitals 2020 2019
  • Clonal Planting Material (ramets)
40,000 30,000
  • Mechanisation: Bin System Coverage
    (hectares)
16,810 4,478

ACTIONS TO ENHANCE OUTCOMES
  • We collaborated with the MPOB and the Malaysian Nuclear Agency on various agriculturalrelated areas of research
  • We actively invest in the best technologies to further advance our agricultural operations

TRADE-OFFS

Our intellectual capital is key in growing our business. This is important to our customers, with whom we work closely to provide innovative products as well as ensure timely and reliable supply. Investment for R&D and new technology would result in short-term reduction of our financial capital, but ultimately leads to longer-term growth.






HUMAN CAPITAL



CREATING VALUE FOR OUR STAKEHOLDERS

Capitals 2020 2019
  • Total Employees
9,027 9,135
  • Employees Turnover (%)
5.11 5.71
  • Staff Cost (Wages & Benefits) (RM’000)
285,065 285,273
  • Training Cost per Employee (RM)
539 1,466

ACTIONS TO ENHANCE OUTCOMES
  • Develop leadership capability readiness for a key positions as and when the need arises
  • Ensure the placement of the right person with the right skills for the right job at the right time
  • Continue building critical skills, source talent and further succession planning

TRADE-OFFS

We believe the provision of competitive salary and benefits, investments in talent development, and spendings on safety and health will create a productive, safe and healthy workforce. This high quality human capital will generate values across the business, positively affecting manufactured, social and relationship and intellectual capital.




SOCIAL & RELATIONSHIP CAPITAL



CREATING VALUE FOR OUR STAKEHOLDERS

Capitals 2020 2019
  • Elephant Encroachment
    (incidences)
75 61
  • Corporate Responsibility Initiatives
    (RM’000)
17,200 17,000

ACTIONS TO ENHANCE OUTCOMES
  • We launched Kulim Wildlife Defenders (“KWD”) to focus our efforts on eliminating poaching at our estates.
  • We work closely with the Wildlife Conservation Society (“WCS”) and the Johor Department of Wildlife to strengthen our internal monitoring and control.
  • We made sure the contributions were channelled to institutions and programmes for the community.

TRADE-OFFS

We will continue building community trust by integrating corporate responsibility and sustainability in all our business processes and contribute to the well-being of the communities in which we operate. Our collective efforts are aimed towards building peaceful relations with our external stakeholders.