Ajinomoto-2019.pdf - ANNUAL REPORT 2019 AJINOMOTO(MALAYSIA BERHAD(4295-W CONTENTS 2 3-8 9 14 15 26 Corporate Information Management Discussion and

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Unformatted text preview: ANNUAL REPORT 2019 AJINOMOTO (MALAYSIA) BERHAD (4295-W) CONTENTS 2 3-8 9 - 14 15 - 26 Corporate Information Management Discussion and Analysis Directors’ Profile Corporate Governance Statement 27 Additional Compliance Information 28 Statement of Directors’ Responsibility in Relation to the Financial Statements 29 - 31 Statement on Risk Management and Internal Control 32 - 34 Audit Committee Report 35 - 36 Analysis of Shareholdings 37 38 - 90 91 92 - 99 100 - 121 Financial Highlights Financial Statements List of Properties Notice of Annual General Meeting Sustainability Statement Form of Proxy AJINOMOTO (MALAYSIA) BERHAD (4295-W) ANNUAL REPORT 2019 CORPORATE INFORMATION DIRECTORS General Tan Sri (Dr.) Dato’ Paduka Mohamed Hashim Bin Mohd. Ali (Rtd) (Chairman) Tan Sri Dato’ (Dr.) Teo Chiang Liang Naoko Yamamoto (Managing Director/ Chief Executive Officer) Shunsuke Sasaki (Chief Finance Officer) Koay Kah Ee Dominic Aw Kian-Wee Dato’ Setia Ramli bin Mahmud Kamarudin bin Rasid Hiroki Suzuki Miki Moriyama Azhan bin Mohamed BANKERS MUFG Bank (Malaysia) Berhad Citibank Berhad Malayan Banking Berhad Standard Chartered Bank Malaysia Berhad AUDITORS Hanafiah Raslan & Mohamad SOLICITORS Lee, Ling & Partners SECRETARIES Chua Siew Chuan (MAICSA 0777689) Yeow Sze Min (MAICSA 7065735) 2 REGISTERED OFFICE Lot 5710, Jalan Kuchai Lama, Petaling, 58200 Kuala Lumpur Tel : 603-7980 6958 Fax : 603-7981 1731 SHARE REGISTRAR Securities Services (Holdings) Sdn Bhd Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur Tel : 603-2084 9000 Fax : 603-2094 9940 STOCK EXCHANGE LISTING Main Market of the Bursa Malaysia Securities Berhad AJINOMOTO (MALAYSIA) BERHAD (4295-W) ANNUAL REPORT 2019 MANAGEMENT DISCUSSION & ANALYSIS Our Business History & Milestones Ajinomoto (Malaysia) Berhad (“the CompanyȄǼȱ Šœȱ ’—Œ˜›™˜›ŠŽȱ ꏝ¢ȬŽ’‘ȱ ¢ŽŠ›œȱ Š˜ȱ ’—ȱ ¢ŽŠ›ȱ ŗşŜŗȱ Š—ȱ œŠ›Žȱ ’œȱ ‹žœ’—Žœœȱ operations as a distributor of monosodium glutamate (“MSG”) under the brand, AJI-NO-MOTO®, which was imported from its parent company in Japan. In year 1965, the Company commenced its own production of MSG and subsequently other products at its current factory. The Company is one of the early Japanese companies to be set up in Malaysia. The Company has since established itself as a dynamic food manufacturer distributing a variety of trusted food seasoning brands. Our AJI-NO-MOTO® Umami seasoning has become an indispensable item in almost every household. Establishment of Ajinomoto (Malaya) Co., Ltd ‡&RPPHQFHPHQWRI “AJI-NO-MOTO” plant operation ‡$ZDUGHG+$/$/ Certification 1961 Launch of “AJI-EKI” +\GURO\]HG 9HJHWDEOH3URWHLQ Liquid) Inauguration of Effluent Treatment Management (SALAM) 1971 1982 1965 1963 Corporate name was changed to Ajinomoto (Malaysia) Sdn Bhd 1968 Company name was changed to Ajinomoto (Malaysia) Berhad as the public company 2004 2003 Awarded +$&&3 Certification Launch of “TUMIX” Stock Seasoning 2005 ‡/DXQFKRI ´9212µ Instant Soup ‡/DXQFKRI ´$&7,9$µ7* Series 2006 Awarded ISO 14001 Certification 2000 Launch of “Slim Up” Sweetener 2008 Awarded 26+$6 Certification 1978 Launch of “AJI-PLUS” Blended Flavour Enhancer 1998 1996 Awarded ISO 9001 Certification 2010 1989 1988 Launch of ´$-,6+,2µ Table Topping Seasoning Launch of “Ajinomoto Brand” Chicken Stock ‡ Launch of “PAL SWEET” Sweetener ‡/DXQFKRI+\GURO\]HG9HJHWDEOH 3URWHLQ ´+93µ 3RZGHU Launch of “SERI-AJI” Menu Specific Seasoning 2011 50th Anniversary of Ajinomoto (Malaysia) Berhad 2012 1992 Launch of “AJI-AROMA” Flavour Enhancing Seasoning 1994 1993 Launch of “AJI-MIX” Blended Seasoning ‡ Establishment of Production 2 (seasonings and food production line) factory ‡ Launch of “AJIMATE” Taste Enhancing Seasoning ‡ Awarded “AJI-NO-MOTO” Product Certification 2014 Establishment Establishment of Chicken of ASEAN Meat Application Powder Plant Centre 2017 +\GURO\VHG 9HJHWDEOH 3URWHLQ ´+93µ  process improvement 2019 ‡Launch "Rasa Sifu" All in One Seasoning 3 AJINOMOTO (MALAYSIA) BERHAD (4295-W) ANNUAL REPORT 2019 Management Discussion & Analysis (cont’d.) Our Policy As a trusted food seasoning company in Malaysia, the Company’s policy is to consistently develop and distribute high quality and safe products that meet customers’ needs and satisfaction, and at the same time comply with international and local rules and regulations for food manufacturing. This is the Company’s contribution to the joyful and healthy living of the community and society. ‘Žȱ˜–™Š—¢ȱ’œȱŒ˜––’ĴŽȱ˜ȱ‹Ž’—ȱŠ—ȱŽ¡Ž–™•Š›¢ȱŒ˜›™˜›ŠŽȱŒ’’£Ž—ǯȱ‘Žȱ˜–™Š—¢ȱ›Ž–Š’—œȱŒ˜––’ĴŽȱ˜ȱ™›˜ŽŒ’—ȱŠ—ȱ’–™›˜Ÿ’—ȱ the environment in all areas of its operations. The Company is also dedicated to providing a safe and healthy workplace environment to all employees. Product Range Retail Products The Company commenced operations in year 1961 with only a single product, namely, AJI-NO-MOTO® Umami seasoning. Today, the retail product range has expanded to include chicken stock, menu seasoning for local dishes, sweetener, and so on. In March 2019, the Company successfully launched a brand new all-in-one seasoning, namely, RASA SIFU™, which provides a new delicious experience and convenience to consumers. The Company will continue to conduct market research to capture changing consumer trends and needs in the area of food seasoning in order to further expand its product range. Industrial Products The Company has a wide range of savoury seasoning products, which the Company markets under the name TENCHO. These TENCHO products are widely used by industrial producers of food such as the producers of instant noodles, seasoning, snack foods, sauces and processed foods. The Company also launched a new TENCHO product for a new business sector, namely the dairy industry. 4 AJINOMOTO (MALAYSIA) BERHAD (4295-W) ANNUAL REPORT 2019 Management Discussion & Analysis (cont’d.) Sales Branches & Overseas Market ‘Žȱ˜–™Š—¢ȱ‘ŠœȱŗŖȱ‹›Š—Œ‘Žœȱ’—ȱŠ•Š¢œ’ŠȱŠ—ȱŗȱœŠ•Žœȱ˜ĜŒŽȱ’—ȱŠž’ȱ›Š‹’Šǯ The Company’s products are well-received by customers in many countries. 5 AJINOMOTO (MALAYSIA) BERHAD (4295-W) ANNUAL REPORT 2019 Management Discussion & Analysis (cont’d.) Financial Results Snapshot Financial Year Ended 31 March 2019 Highlights ›˜ęȱ‹Ž˜›ŽȱŠ¡ Revenue RM 447.7mil RM Total Assets 72.7mil RM 533.3mil Earnings per Share Return on Equity 93.06sen 12.16% Ordinary Dividends per Share (Proposed) 47.0sen Revenue By Geographical Area (RM Millions) Middle East RM61.5 Others RM5.6 Revenue By Business (RM Millions) Industrial Business RM119.2 Other Asian Countries RM105.2 Malaysia RM275.4 Consumer Business RM328.5 Operating Environment The global economy in year 2018 had been challenging, having been impacted by trade tension and sanctions. The Malaysian economy grew moderately in year 2018 and consumer sentiments improved as compared to the previous year. 6 AJINOMOTO (MALAYSIA) BERHAD (4295-W) ANNUAL REPORT 2019 Management Discussion & Analysis (cont’d.) Financial Review —ȱ‘Žȱꗊ—Œ’Š•ȱ¢ŽŠ›ȱŽ—ŽȱřŗȱŠ›Œ‘ȱŘŖŗşǰȱ‘Žȱ˜–™Š—¢ȱŠŒ‘’ŽŸŽȱ‘’‘Ž›ȱ›ŽŸŽ—žŽȱ‹¢ȱŘǯŜƖȱ›˜–ȱŚřŜǯřȱ–’••’˜—ȱ’—ȱ‘Žȱ™›ŽŒŽ’—ȱ ꗊ—Œ’Š•ȱ¢ŽŠ›ȱ˜ȱŚŚŝǯŝȱ–’••’˜—ǯȱ —Œ›ŽŠœŽȱ’—ȱ‘Žȱ˜–™Š—¢Ȃœȱ›ŽŸŽ—žŽȱ ŠœȱŒ˜—›’‹žŽȱ‹¢ȱ’—Œ›ŽŠœŽȱ’—ȱœŠ•ŽœȱŸ˜•ž–ŽȱŠ—ȱ‹ŽĴŽ›ȱœŽ••’—ȱ ™›’ŒŽȱ˜ȱ ȬȬțȱ™›˜žŒœǯȱ›˜ęȱ‹Ž˜›ŽȱŠ¡ȱ’—ȱ‘ŽȱŒž››Ž—ȱꗊ—Œ’Š•ȱ¢ŽŠ›ȱ’–™›˜ŸŽȱ‹¢ȱŞǯřƖȱ˜ȱŝŘǯŝȱ–’••’˜—ȱ›˜–ȱŜŝǯŗȱ –’••’˜—ȱ ’—ȱ ‘Žȱ ™›ŽŒŽ’—ȱ ꗊ—Œ’Š•ȱ ¢ŽŠ›ǯȱ ‘Žȱ —˜Š‹•Žȱ ’—Œ›ŽŠœŽȱ ’—ȱ ™›˜ęȱ ‹Ž˜›Žȱ Š¡ȱ Šœȱ –Š’—•¢ȱ ŠĴ›’‹žŠ‹•Žȱ ˜ȱ Œ˜œȱ ’–™›˜ŸŽ–Ž—œȱ including the decrease in the purchase price of a key raw material. However, part of this cost reduction was diluted by the increase ’—ȱŠŸŽ›’œ’—ȱŠ—ȱœŠ•Žœȱ™›˜–˜’˜—ȱŽ¡™Ž—œŽœȱžŽȱ˜ȱŠŒ’ŸŽȱœŠ•ŽœȱŠŒ’Ÿ’’Žœǰȱ‹žȱŽœ™’Žȱ‘’œȱ‘Žȱ˜–™Š—¢Ȃœȱ™›˜ęȱ‹Ž˜›ŽȱŠ¡ȱ’—Œ›ŽŠœŽǰȱ Š’Žȱ‹¢ȱ˜–™Š—¢ȂœȱŽěŽŒ’ŸŽȱꗊ—Œ’Š•ȱ–Š—ŠŽ–Ž—ǯȱ In relation to the acquisition of the freehold land located in [email protected] Enstek as announced by the Company on 12 February 2018, the conditions precedent and various responsibilities of the vendor as stated in the Sales and Purchase Agreement are expected to ‹Žȱž•ę••Žȱ ’‘’—ȱ‘ŽȱŠ›ŽŽȱ’–Ž•’—Žǯ Ž–Ž—ȱ —˜›–Š’˜— Consumer Business ŽŸŽ—žŽȱ ’—ȱ ‘Žȱ ˜—œž–Ž›ȱ žœ’—Žœœȱ œŽ–Ž—ȱ ›Ž ȱ ‹¢ȱ ŚǯŞƖȱ ’—ȱ ‘Žȱ Œž››Ž—ȱ ꗊ—Œ’Š•ȱ ¢ŽŠ›ȱ ›˜–ȱ řŗřǯŚȱ –’••’˜—ȱ ’—ȱ ‘Žȱ ™›ŽŒŽ’—ȱ ꗊ—Œ’Š•ȱ¢ŽŠ›ȱ˜ȱřŘŞǯśȱ–’••’˜—ȱŠĴ›’‹žŽȱ‹¢ȱŠ—ȱ’—Œ›ŽŠœŽȱ’—ȱœŠ•ŽœȱŸ˜•ž–ŽȱŠ—ȱ‹ŽĴŽ›ȱœŽ••’—ȱ™›’ŒŽȱ˜ȱ ȬȬțȱ™›˜žŒœǯȱ ‘’•Žȱ œŽ••’—ȱ Ž¡™Ž—œŽœȱ ‘’”Žȱ ’‘ȱ ‘Žȱ ’—Œ›ŽŠœŽȱ ’—ȱ œŠ•Žœǰȱ ‘Žȱ œŽ–Ž—Š•ȱ ™›˜ęȱ ˜ȱ ‘Žȱ ˜—œž–Ž›ȱ žœ’—Žœœȱ œŽ–Ž—ȱ ’—Œ›ŽŠœŽȱ ›˜–ȱ řŗǯŜȱ–’••’˜—ȱ’—ȱ‘Žȱ™›ŽŒŽ’—ȱꗊ—Œ’Š•ȱ¢ŽŠ›ȱ˜ȱřşǯŗȱ–’••’˜—ȱ’—ȱ‘ŽȱŒž››Ž—ȱꗊ—Œ’Š•ȱ¢ŽŠ›ǯȱ‘’œȱ’—Œ›ŽŠœŽȱ’—ȱ‘ŽȱœŽ–Ž—Š•ȱ™›˜ęȱ ŠœȱŠĴ›’‹žŠ‹•Žȱ˜ȱ•˜ Ž›ȱ™›˜žŒ’˜—ȱŒ˜œœǰȱ ‘’Œ‘ȱ Ž›Žȱ–Š’—•¢ȱžŽȱ˜ȱ‘Žȱ›ŽžŒ’˜—ȱ’—ȱ‘Žȱ™ž›Œ‘ŠœŽȱ™›’ŒŽȱ˜ȱŠȱ”Ž¢ȱ›Š ȱ–ŠŽ›’Š•ǯ Industrial Business ŽŸŽ—žŽȱ ’—ȱ ‘Žȱ —žœ›’Š•ȱ žœ’—Žœœȱ œŽ–Ž—ȱ ›ŽžŒŽȱ ‹¢ȱ řǯŖƖȱ ›˜–ȱ ŗŘŘǯşȱ –’••’˜—ȱ ’—ȱ ‘Žȱ ™›ŽŒŽ’—ȱ ꗊ—Œ’Š•ȱ ¢ŽŠ›ȱ ˜ȱ ŗŗşǯŘȱ –’••’˜—ȱ’—ȱ‘ŽȱŒž››Ž—ȱꗊ—Œ’Š•ȱ¢ŽŠ›ȱ–Š’—•¢ȱžŽȱ˜ȱ‘ŽȱŽŒ›ŽŠœŽȱ’—ȱŽ¡™˜›ȱœŠ•Žœǰȱ ‘’Œ‘ȱ Šœȱ•Š›Ž•¢ȱ’–™ŠŒŽȱ‹¢ȱ‘Žȱ ŽŠ”Ž›ȱȱ˜••Š›œȱ ŠŠ’—œȱŠ•Š¢œ’Š—ȱ’—’ǰȱ™Š›’Œž•Š›•¢ȱ’—ȱ‘Žȱꛜȱ‘Š•ȱ˜ȱ‘ŽȱŒž››Ž—ȱꗊ—Œ’Š•ȱ¢ŽŠ›ǯȱ‘’œȱ›Žœž•Žȱ’—ȱ•˜ Ž›ȱœŽ–Ž—Š•ȱ™›˜ęȱ˜ȱŘŘǯŞȱ –’••’˜—ȱ’—ȱ‘ŽȱŒž››Ž—ȱꗊ—Œ’Š•ȱ¢ŽŠ›ȱŠœȱŒ˜–™Š›Žȱ˜ȱŘśǯśȱ–’••’˜—ȱ’—ȱ‘Žȱ™›ŽŒŽ’—ȱꗊ—Œ’Š•ȱ¢ŽŠ›ǯ Financial Condition ˜Š•ȱœœŽœȱ Š—ȱ ˜Š•ȱ ŽȱœœŽœȱ Šœȱ Šȱ ‘Žȱ Ž—ȱ ˜ȱ ‘Žȱ Œž››Ž—ȱ ꗊ—Œ’Š•ȱ ¢ŽŠ›ȱ ’—Œ›ŽŠœŽȱ Šœȱ Œ˜–™Š›Žȱ ˜ȱ ‘Žȱ Ž—ȱ ˜ȱ ‘Žȱ ™›ŽŒŽ’—ȱ ꗊ—Œ’Š•ȱ¢ŽŠ›ǯ Žȱ ŒŠœ‘ȱ ›˜–ȱ ˜™Ž›Š’—ȱ ŠŒ’Ÿ’’Žœȱ Šœȱ Ŝśǯśȱ –’••’˜—ȱ Šœȱ Œ˜–™Š›Žȱ ˜ȱ ŜŖǯŞȱ –’••’˜—ȱ ’—ȱ ‘Žȱ ™›ŽŒŽ’—ȱ ꗊ—Œ’Š•ȱ ¢ŽŠ›ǯȱ Žȱ Œœ‘ȱ žœŽȱ˜›ȱ’—ŸŽœ’—ȱŠŒ’Ÿ’’Žœȱ ŠœȱśŞǯŗȱ–’••’˜—ȱŠœȱŒ˜–™Š›Žȱ˜ȱ—ŽȱŒŠœ‘ȱ’—Ě˜ ȱ˜ȱřŚǯŗȱ–’••’˜—ȱ’—ȱ‘Žȱ™›ŽŒŽ’—ȱꗊ—Œ’Š•ȱ¢ŽŠ›ǰȱ –Š’—•¢ȱžŽȱ˜ȱ‘ŽȱŽ™˜œ’ȱ™Š¢–Ž—œȱ˜›ȱ‘Žȱ—Ž ȱ•Š—ȱŠ—ȱ™•ŠŒŽ–Ž—ȱ˜ȱœ‘˜›ȬŽ›–ȱž—œǯȱŠœ‘ȱ˜žĚ˜ ȱ˜›ȱꗊ—Œ’—ȱŠŒ’Ÿ’’Žœȱ Šœȱ ŘŞǯřȱ–’••’˜—ȱŠœȱŒ˜–™Š›Žȱ˜ȱşŚǯŘȱ–’••’˜—ȱ’—ȱ‘Žȱ™›ŽŒŽ’—ȱꗊ—Œ’Š•ȱ¢ŽŠ›ȱ–Š’—•¢ȱ‹ŽŒŠžœŽȱ‘Ž›Žȱ Šœȱ‘Žȱœ™ŽŒ’Š•ȱ˜—ŽȬ˜ěȱœ’—•ŽȬ tier dividend payment to shareholders in the previous year. Dividend The Board of Directors continues to uphold the policy of stable and sustainable dividend payout to shareholders. The Directors ™›˜™˜œŽȱŠȱꛜȱŠ—ȱꗊ•ȱœ’—•ŽȬ’Ž›ȱ’Ÿ’Ž—ȱ˜ȱŚŝǯŖȱœŽ—ȱ™Ž›ȱ˜›’—Š›¢ȱœ‘Š›Žǰȱ ‘’Œ‘ȱ’œȱœž‹“ŽŒȱ˜ȱ‘ŽȱŠ™™›˜ŸŠ•ȱ˜ȱœ‘Š›Ž‘˜•Ž›œȱŠȱ‘Žȱ forthcoming Annual General Meeting. Operational Risk (1) Risks Related to the Operating Environment ȱ –™ŠŒȱ˜ȱ¡Œ‘Š—ŽȱŠŽȱ•žŒžŠ’˜—œ ȱ ¡Œ‘Š—Žȱ›ŠŽȱ̞ŒžŠ’˜—œȱ’–™ŠŒŽȱ‘Žȱ˜–™Š—¢Ȃœȱ‹žœ’—Žœœȱ›Žœž•œȱ’—ȱ‘ŽȱŒž››Ž—ȱꗊ—Œ’Š•ȱ¢ŽŠ›ǰȱ ’‘ȱœŠ•Žœȱ˜ȱŒžœ˜–Ž›œȱ’—ȱ regions other than Malaysia amounting to RM172.3 million and the need to import a key raw material which is priced in US Dollars. 7 AJINOMOTO (MALAYSIA) BERHAD (4295-W) ANNUAL REPORT 2019 Management Discussion & Analysis (1) ȱȱ (cont’d.) Risks Related to the Operating Environment (cont’d.) ŒŒž››Ž—ŒŽȱ˜ȱ—˜›ŽœŽŽ—ȱŸŽ›œŽȱŒ˜—˜–’Œȱ˜›ȱ˜•’’ŒŠ•ȱŠŒ˜›œ The Company conducts business globally. It therefore cannot avoid any economic, political and legal impediments overseas, such as political instability, that may have an adverse impact on its business results. ȱ –™ŠŒȱ˜ȱ›’ŒŽȱ•žŒžŠ’˜—œȱ˜›ȱŠ ȱŠŽ›’Š•œȱŠ—ȱžŽ•œ ȱ ‘Žȱ™›’ŒŽœȱ˜ȱŒŽ›Š’—ȱ›Š ȱ–ŠŽ›’Š•œȱŠ—ȱŽ—Ž›¢ȱ›Žœ˜ž›ŒŽœȱžœŽȱ‹¢ȱ‘Žȱ˜–™Š—¢ȱ–Š¢ȱ̞ŒžŠŽȱŠŒŒ˜›’—ȱ˜ȱ–Š›”ŽȱŒ˜—’’˜—œǯȱ These will result in higher manufacturing costs, which will impact the Company’s business results. (2) Risks Related to Business Activities ȱ ŠĴŽ›œȱ쎌’—ȱ˜˜ȱŠŽ¢ ȱ ‘Žȱ ˜–™Š—¢ȱ –Š”Žœȱ Ž¡Ž—œ’ŸŽȱ Žě˜›œȱ ˜ȱ –Š—ŠŽȱ ŠŒ˜›œȱ ‘Šȱ ’–™ŠŒȱ ˜˜ȱ œŠŽ¢ǰȱ ‘’Œ‘ȱ ’œȱ Šȱ ”Ž¢ȱ ˜ž—Š’˜—ȱ ˜—ȱ ‘’Œ‘ȱ ‘Žȱ ˜–™Š—¢Ȃœȱ‹žœ’—Žœœȱ’œȱ‹ž’•ǯȱ ˜ ŽŸŽ›ǰȱȱž—˜›ŽœŽŽ—ȱ’œœžŽœȱŠěŽŒ’—ȱ˜˜ȱœŠŽ¢ȱ–Š¢ȱŠ›’œŽǰȱ ‘’Œ‘ȱŠ›Žȱ‹Ž¢˜—ȱ‘Žȱ˜–™Š—¢Ȃœȱ control. Such unforeseen events may have an adverse impact on the Company’s business results. (3) Laws and Regulations, Litigation, etc. ȱ –™ŠŒȱ˜ȱŠ œǰȱŽž•Š’˜—œȱŠ—ȱ‘Ž›ȱž•Žœ As the Company conducts business in Malaysia and globally, it complies with all laws, rules and regulations of Malaysia and the countries in which the Company exports its products and purchases its raw materials. However, new legal requirements may be introduced that cannot currently be foreseen, which the Company may not be in a position to meet immediately or within a stipulated period. The Company’s operations and business results may be impacted. Outlook The Malaysian economy is expected to grow at a steady pace in the coming year mainly driven by the private sector, which is being supported by continued income and employment growth. However, the domestic economic growth may encounter challenges from the uncertainties in developed economies and the escalating trade tensions, which could impede global trade and growth. ‘Žȱ˜–™Š—¢ȱŽ¡™ŽŒœȱŒ‘Š••Ž—Žœȱ›˜–ȱŒž››Ž—Œ¢ȱ̞ŒžŠ’˜—ǰȱ’—Ž—œ’¢’—ȱŒ˜–™Ž’’˜—ȱŠ—ȱ’—Œ›ŽŠœ’—ȱŒ˜œœȱ’—ȱ›Š ȱ–ŠŽ›’Š•œȱŠ—ȱœ˜–Žȱ ˜™Ž›Š’—ȱŒ˜œœǯȱ‘Žȱ˜–™Š—¢ȱ ’••ȱœŠ¢ȱ˜ŒžœŽȱ’—ȱ˜ěŽ›’—ȱ™›˜žŒœȱŠ—ȱœŽ›Ÿ’ŒŽœȱ‘Šȱ–ŽŽȱ’—žœ›¢ȱŠ—ȱŒ˜—œž–Ž›ȱŽ¡™ŽŒŠ’˜—œȱŠ—ȱ ˜›”ȱ˜ Š›œȱž›‘Ž›ȱŒ˜œȱ’–™›˜ŸŽ–Ž—œȱ’—ȱ˜›Ž›ȱ˜ȱœžœŠ’—ȱ›˜ ‘ȱ’—ȱ™›˜ęœǯ For the Consumer Business segment, we will sustain the Company’s market leader position of AJI-NO-MOTO® through successful œ›ŠŽ’ŽœȱœžŒ‘ȱŠœȱŒ˜—’—ž’—ȱ‘ŽȱŽěŽŒ’ŸŽȱȃŠ–™ž›ǰȱŠ–™ž›ǰȱ’Š™ǷȄȱŒŠ–™Š’—ȱ˜ȱ™›˜–˜Žȱ‘ŽŠ•‘¢ȱŽŠ’—ȱ‘Š‹’œȱ ’‘ȱ–˜›ŽȱŸŽŽŠ‹•Žȱ intake and sharing of positive information on monosodium glutamate on social media. In addition to strengthening the sales of other seasoning products such as TUMIX®, SERI-AJI® and AJI-SHIO® in the household and food service market, we will expand the distribution of our newly launched product, namely, RASA SIFU™, to delight family households and consumers with delicious new taste and convenience in cooking. For the Industrial Business segment, we will further leverage on our in-house specialty technologies acquired from our parent company and increase sales for our major products, namely, TENCHO and ACTIVA® TG, by expanding their distribution to our existing customers while developing new customer base including gaining share of the new dairy industry sector. Žȱ ’••ȱ ”ŽŽ™ȱ ’–™›˜Ÿ’—ȱ ‘Žȱ ŽĜŒ’Ž—Œ¢ȱ Š—ȱ ™›˜ęŠ‹’•’¢ȱ ˜ȱ ‘Žȱ ˜–™Š—¢ȱ ‘›˜ž‘ȱ ™›˜ŒŽœœȱ ’–™›˜ŸŽ–Ž—ǰȱ ™Ž˜™•Žȱ –Š—ŠŽ–Ž—ȱ Š—ȱ operational cost reduction. At the same time, Management will continue to uphold the Ajinomoto Group Shared Value to guide the Company in its contribution to society in areas related to healthy living, global sustainability and food resource as a responsible corporate citizen. 8 AJINOMOTO (MALAYSIA) BERHAD (4295-W) ANNUAL REPORT 2019 DIRECTOR’S PROFILE ȱ General Tan Sri (Dr.) Dato’ Paduka ˜‘Š–Žȱ Šœ‘’–ȱ‹’—ȱ˜‘ǯȱ•’ȱǻǼȱ Chairman, Independent Non-Executive Director 84 years old – Malaysian Male General Tan Sri (Dr.) Dato’ Paduka Mohamed Hashim bin Mohd. Ali (Rtd) was appointed as the Chairman of Ajinomoto (Malaysia) Berhad on 5 September 1995. He resigned as the Chairman of the Audit ˜––’ĴŽŽȱ˜—ȱŗȱ˜ŸŽ–‹Ž›ȱŘŖŖŘȱ‹žȱ›Ž–Š’—ŽȱŠœȱŠȱ˜––’ĴŽŽȱ–Ž–‹Ž›ǯȱ Žȱ’œȱ‘Žȱ‘Š’›–Š—ȱ˜ȱ‘ŽȱŽ–ž—Ž›Š’˜—ȱ˜––’ĴŽŽȱŠ—ȱŠȱ–Ž–‹Ž›ȱ˜ȱ‘Žȱ ˜–’—Š’˜—ȱ˜––’ĴŽŽǯȱ ŽȱŠĴŽ—ŽȱŠ••ȱ꟎ȱǻśǼȱ˜Š›ȱ–ŽŽ’—œȱ‘Ž•ȱ’—ȱ ‘Žȱꗊ—Œ’Š•ȱ¢ŽŠ›ǯ He holds a Diploma In Advance Business Management from the Harvard Business School. He was conferred the Honorary Doctorate by the University of Salford, United Kingdom in January 1999 and the Honorary Doctorate by the Malaysian National Defence University in October 2012. He is also a member of the Selangor Royal Court (Ahli Dewan DiRaja Selangor) since 1 January 2005. Prior to his entry into the corporate world, General Tan Sri (Dr.) Dato’ Paduka Mohamed Hashim bin Mohd. Ali (Rtd) was the Chief of the Defence Forces in the Malaysian Armed Forces where he chalked up 40 years of dedicated service. During his tenure in the Malaysian Armed Forces, he had initiated the re-organisation and modernization of the Army. He is the Chairman of Datasonic Group Berhad and Fusang Exchange ǯȱ Žȱ ’œȱ Š•œ˜ȱ Œž››Ž—•¢ȱ ‘Žȱ ‘Š’›–Š—ȱ ˜ȱ ‘Žȱ Ž’˜—Š•ȱ ˜––’ĴŽŽȱ ˜ȱ Glutamate Science Southeast Asia/South Asia, whose member countries are Thailand, Indonesia, Philippines, Vietnam and Malaysia. He is also the Chairman of a private company namely National Aerospace & Defence Industries Sdn Bhd. He also sits on the Board of the Institute of Strategic and International Studies (ISIS Malaysia) as well as some other private companies. Žȱ‘Šœȱ—˜ȱŒ˜—Ě’Œȱ˜ȱ’—Ž›Žœȱ ’‘ȱ‘Žȱ˜–™Š—¢ȱ˜›ȱŠ—¢ȱŠ–’•¢ȱ›Ž•Š’˜—œ‘’™ȱ with any other Director or shareholder of the Company. He has also —Ž’‘Ž›ȱ ‹ŽŽ—ȱ Œ˜—Ÿ’ŒŽȱ ˜›ȱ Š—¢ȱ ˜ěŽ—ŒŽœȱ ’‘’—ȱ ‘Žȱ ™Šœȱ ꟎ȱ ǻśǼȱ ¢ŽŠ›œȱ ˜‘Ž›ȱ ‘Š—ȱ ›ŠĜŒȱ ˜ěŽ—ŒŽœǰȱ ’ȱ Š—¢ǰȱ —˜›ȱ ›ŽŒŽ’ŸŽȱ Š—¢ȱ ™ž‹•’Œȱ œŠ—Œ’˜—ȱ ˜›ȱ ™Ž—Š•¢ȱ’–™˜œŽȱ‹¢ȱ‘Žȱ›Ž•ŽŸŠ—ȱ›Žž•Š˜›¢ȱ‹˜’Žœȱž›’—ȱ‘Žȱꗊ—Œ’Š•ȱ year. 9 AJINOMOTO (MALAYSIA) BERHAD (4295-W) ANNUAL REPORT 2019 Director’s Profile (cont’d.) Tan Sri Dato’ (Dr.) Teo Chiang Liang Independent Non-Executive Director 68 years of age – Malaysian Male Tan Sri Dato’ (Dr.) Teo was appointed to the Board of Ajinomoto (Malaysia) Berhad ˜—ȱŘŞȱ ž—ŽȱŘŖŖŗǯȱ Žȱ ŠœȱŠ™™˜’—ŽȱŠœȱ‘Žȱ‘Š’›–Š—ȱ˜ȱ‘Žȱž’ȱ˜––’ĴŽŽȱ˜—ȱ ŗȱ ˜ŸŽ–‹Ž›ȱ ŘŖŖŘǯȱ Žȱ ’œȱ Š•œ˜ȱ Šȱ –Ž–‹Ž›ȱ ˜ȱ ‘Žȱ ˜–’—Š’˜—ȱ ˜––’ĴŽŽȱ Š—ȱ ‘Žȱ Ž–ž—Ž›Š’˜—ȱ ˜––’ĴŽŽǯȱ Žȱ ŠĴŽ—Žȱ Š••ȱ ꟎ȱ ǻśǼȱ ˜Š›ȱ –ŽŽ’—œȱ ‘Ž•ȱ ’—ȱ ‘Žȱ ꗊ—Œ’Š•ȱ¢ŽŠ›ǯ Graduated with a Bachelor of Arts (Honours) degree in Business Studies and M.Sc in Management & Administration from the United Kingdom, Tan Sri Teo obtained his training from The Chartered Bank and Pillar Naco Ltd in UK. Since 1975, he “˜’—Žȱ Š—ȱ œŽ›ŸŽȱ ‘Žȱ ŽŽȱ ˜¢ȱ ‘Š—ȱ ˜•’—œȱ ›˜ž™ǰȱ Šȱ Ž••ȱ ’ŸŽ›œ’ꮍȱ ›˜ž™ȱ ˜ȱ Œ˜–™Š—’Žœǰȱ Šȱ ’쎛Ž—ȱ •ŽŸŽ•œȱ ˜ȱ –Š—ŠŽ–Ž—ǯȱ —ȱ ŗşşŖǰȱ ‘Žȱ Šœȱ Š Š›Žȱ ‘Žȱ Ž›’ęŒŠŽȱ’—ȱ Ž—Ž›Š•ȱ —œž›Š—ŒŽȱ‹¢ȱ‘ŽȱŠ•Š¢œ’Š—ȱ —œž›Š—ŒŽȱ —œ’žŽǯ Tan Sri Teo was elected Secretary General of the Malaysian Association of Private Colleges & Universities from 1997 to March 2003 and is currently its Vice-President. He was appointed as member of the MSC Education Advisory Panel in 1998. He is Š•œ˜ȱŠȱ’ŽȱŽ–‹Ž›ȱ˜ȱ‘ŽȱŠ•Š¢œ’Š—ȱŽȱ›ŽœŒŽ—ȱ˜Œ’Ž¢ǯȱ —ȱŗşşŞǰȱ‘Žȱ˜Ĵ’—‘Š–ȱ Trent University in UK appointed Tan Sri Teo as Professor of the University and awarded an honorary degree of Doctor of Business Administration to him in 2001. In 2006, Tan Sri Teo was elected as an Exco member of the Malaysian Crime Prevention Foundation. Tan Sri Teo was an Independent Non-Executive Director of RHB Capital Berhad from 20 May 2010 to 12 May 2016 and RHB Insurance Berhad from 4 May 2010 to 3 August 2015. Tan Sri Teo does not hold directorships in any other public company and listed ’œœžŽ›ǯȱ Žȱ‘Šœȱ—˜ȱŒ˜—Ě’Œȱ˜ȱ’—Ž›Žœȱ ’‘ȱ‘Žȱ˜–™Š—¢ȱ˜›ȱŠ—¢ȱŠ–’•¢ȱ›Ž•Š’˜—œ‘’™ȱ with any other Director or shareholder of the Company. He has also neither been Œ˜—Ÿ’ŒŽȱ ˜›ȱ Š—¢ȱ ˜ěŽ—ŒŽœȱ ’‘’—ȱ ‘Žȱ ™Šœȱ ꟎ȱ ǻśǼȱ ¢ŽŠ›œȱ ˜‘Ž›ȱ ‘Š—ȱ ˜›ȱ ›ŠĜŒȱ ˜ěŽ—ŒŽœǰȱ’ȱŠ—¢ǰȱ—˜›ȱ›ŽŒŽ’ŸŽȱŠ—¢ȱ™ž‹•’ŒȱœŠ—Œ’˜—ȱ˜›ȱ™Ž—Š•¢ȱ’–™˜œŽȱ‹¢ȱ›Žž•Š˜›¢ȱ ‹˜’Žœȱž›’—ȱ‘Žȱꗊ—Œ’Š•ȱ¢ŽŠ›ǯ ȱ Naoko Yamamoto Š—Š’—ȱ’›ŽŒ˜›ǰȱ‘’Žȱ¡ŽŒž’ŸŽȱĜŒŽ› 52 years of age – Japanese Female œǯȱŠ–Š–˜˜ȱ ŠœȱŠ™™˜’—ŽȱŠœȱŠ—Š’—ȱ’›ŽŒ˜›Ȧȱ‘’Žȱ¡ŽŒž’ŸŽȱĜŒŽ›ȱ˜—ȱŗȱ ž•¢ȱŘŖŗŝǯȱ‘ŽȱŠĴŽ—ŽȱŠ••ȱ꟎ȱǻśǼȱ˜Š›ȱ–ŽŽ’—œȱ‘Ž•ȱ’—ȱ‘Žȱꗊ—Œ’Š•ȱ¢ŽŠ›ǯȱ‘Žȱ’œȱ —˜ȱŠȱ–Ž–‹Ž›ȱ˜ȱŠ—¢ȱ˜Š›ȱ˜––’ĴŽŽǯ Ms. Yamamoto graduated from Waseda University with a Bachelor Degree in Political Science and Economics in March 1991. She joined Ajinomoto Co., Inc. Japan in 1991 and has held various positions mainly in business development, marketing and sales functions of consumer food business in Japan and overseas within the Ajinomoto Group of Companies. She does not hold directorships in any other public company and listed issuer. She ‘Šœȱ—˜ȱŒ˜—Ě’Œȱ˜ȱ’—Ž›Žœȱ ’‘ȱ‘Žȱ˜–™Š—¢ȱ˜›ȱŠ—¢ȱŠ–’•¢ȱ›Ž•Š’˜—œ‘’™ȱ ’‘ȱŠ—¢ȱ other Director or shareholder of the Company. She has also neither been convicte...
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