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COCOALAND HOLDINGS BERHAD
Corporate Presentation Stock Code: 7205
Bloomberg Ticker: COLA : MK
Website: www.cocoaland.com
2
Disclaimer
Information contained in our presentation is intended solely for your personal reference
and is strictly confidential. Such information is subject to change without notice, its
accuracy is not guaranteed and it may not contain all material information about the
company. Neither we nor our advisors make any representation regarding, and assume
no responsibility or liability for, the accuracy or completeness of, or any errors or
omissions in, any information contained herein.
In addition, the information contains projections and forward looking statements that
reflect the company’s current views with respect to future events and financial
performance. These views are based on current assumptions which are subject to various
risks and which may change over time. No assurance can be given that future events will
occur, that projections will be achieved, or that the company’s assumptions are correct.
Actual results may differ materially from those projected.
This presentation is strictly not to be distributed without the explicit consent of the
Company’s management under any circumstances.
3
Table of Contents
Trend & Breakdown Analysis
Dividend Track Record
Our Future Plans
Shareholding Structure
Appendices
Corporate Profile
Financial Results Analysis
5
Introduction to Cocoaland Holdings Berhad
Besides manufacturing for the OEM market, Cocoaland focuses its business efforts on
3 industrial food categories under its proprietary / own brands as follows:
Snack food Rotong, Mite, Cris
Chocolate &
Sugar Confectionery Lot100, Koko Jelly, CocoPie, Mum’s Bake
Soft Drinks Fruit10
Cocoaland Holdings Berhad (“Cocoaland”) was incorporated on 6 June 2000 and subsequently listed on the Second Board of Bursa Malaysia Berhad on 18 January 2005. Cocoaland’s listing status was transferred to the Main Board on 18 July 2006. Cocoaland is the investment holding company of a group of subsidiaries that are principally involved in the manufacturing, trading and distribution of a large range of food products.
The family business, which began in the 1970-s selling deep-fried food from a van, established M.I.T.E. Food Enterprise Sdn Bhd (“MFESB”), the pioneer subsidiary within the Group, on 10 September 1980 as a manufacturing and distributing company. In the mid-1980s, the manufacturing of polytubed drinks successfully propelled the company to venture into the overseas market and purchase their own factory where the second winning product “Koko Jelly” was produced.
6
Group Structure (by Business Segment)
B Plus Q Sdn Bhd
Cocoaland Industry Sdn Bhd
M.I.T.E. Food Enterprise Sdn Bhd
PT Cocoaland Indonesia
L.B. Food Sdn Bhd
Lot 100 Food Co. Ltd.
100%
100%
100%
90%
100%
100%
Manufacturing arm via 5
factories in Rawang, Kepong
and Kampar for its own
brands and the OEM market
Distribution and trading of all
food products manufactured
by Cocoaland Group
Cocoaland Retail Sdn Bhd (fka Greenhome Marketing Sdn Bhd)
100%
CCL Food & Beverage Sdn Bhd 100%
10%
7
Our Major Products Snack food
Chocolate & Sugar
Confectionery Soft Drinks
CocoPie Hard Candy Snacks Fruit Gummy
Chocolate Jelly Beverage Cookies
OEM Products
8
Corporate Milestones
1980
• Set up 1st factory in Kampar
to manufacture and distribute
food products (mainly for
Cracker, Jelly, Pollytube Drink
and Peas)
1985
• Started production of
polytubed drinks, the
Group’s first product to be
exported
1991
• Set up 2nd factory in Kepong
is mainly for Chocolate Candy
production and successfully
commercialised production of
“Koko Jelly”
1995
• Set up 3rd factory in
Rawang (Lot 100) to
produce Fruit Gummy,
Hard Candy & Snack
Food
1998
• Successfully
commercialised
production of “Lot 100”
Fruit Gummy
• Started OEM with MNC-s
2002
• Awarded ISO 9001:2000
for its manufacturing
facilities
2004
• Conferred “Golden Bull Award” &
“Enterprise 50 Award” by SMIDEC
• Set up 4th factory in Rawang (Lot 5) to
produce CocoPie, Cookies & Wafer
2005
• Listed on the 2nd Board
of Bursa Malaysia
• Rawang factory received
HACCP certification
2008
• Set up a trading office in
Shenzhen, China
2010
• Set up 5th factory in Rawang
(Lot 88) to produce mainly
beverage
• Launched first beverage product
2006
• Transferred listing status
to the Main Board of
Bursa Malaysia
2011
• Acquired land in Rawang for
construction of the 6th building
(warehouse) in 2016
2013
• Acquired an industrial building
in Rawang, planned for
producing Chocholate and
Wafer in 2016
2014
• Set up a trading office in
Jakarta, Indonesia
2015
• The Group achieved historical
high record for both its
Revenue and Net Profit
9
Product Sales Mix
Sales by Product
Group for FYE / period
ended…
Audited FY2012
(12 months)
Audited FY2013
(12 months)
Audited FY2014
(12 months)
Unaudited
FY2015
(12 months)
RM mil % RM mil % RM mil % RM mil %
1) Fruit Gummy 83.70 37.5 90.29 35.5 98.31 37.7 110.75 42.3
2) Hard Candy 13.10 5.9 12.89 5.1 12.60 4.8 13.13 5.0
3) Snack 9.31 4.2 14.45 5.7 18.83 7.2 22.78 8.7
4) Wafer 2.76 1.2 3.04 1.2 2.57 1.0 2.81 1.1
5) Coco Pie 14.36 6.4 12.51 4.9 12.10 4.6 12.90 4.9
6) Cookies 3.11 1.4 3.62 1.4 3.82 1.5 4.47 1.7
7) Chocolate 18.72 8.4 19.24 7.5 20.98 8.1 23.11 8.8
8) Other Foods 17.99 8.1 17.50 6.9 18.26 7.0 17.42 6.7
9) Beverage 60.15 26.9 80.91 31.8 73.29 28.1 54.27 20.8
Total 223.20 100.0 254.45 100.0 260.76 100.0 261.64 100.0
While Fruit Gummy remains the core product of Cocoaland, the contract manufacturing of
Beverage business has begun to contribute significantly since 2011 but reduced lower in 2015.
10
Our Present Markets
A wide range of our products are carried by reputable retail
stores as follows: Local Market
Besides the domestic market, Cocoaland Group has been
supplying confectionery to overseas markets such as USA,
Middle East, Hong Kong, Australia & Europe.
The export market’s share to the Group’s overall revenue
has increased progressively from 46.5% in FY2009 to
58.2% in FY2015.
Export Market
11
Sales by Geographical Segment
Sales by Geographical Segment
for FYE / period ended …
Audited
FY2012
(12 months)
Audited
FY2013
(12 months)
Audited
FY2014
(12 months)
Unaudited
FY2015
(12 months)
RM mil % RM mil % RM mil % RM mil %
Proprietary / Own Brands 119.14 53.4 134.63 52.9 152.10 58.33 173.50 66.31
Local 68.04 30.5 69.72 27.4 73.43 28.16 76.70 29.31
Export 51.10 22.9 64.91 25.5 78.67 30.17 96.80 37.00
OEM Brands 104.06 46.6 119.82 47.1 108.66 41.67 88.14 33.69
Local 30.11 13.5 29.57 11.6 26.40 10.12 32.67 12.49
Export 73.95 33.1 90.25 35.5 82.26 31.55 55.47 21.20
Total 223.2 100.0 254.45 100.0 260.76 100.0 261.64 100.0
Note: Please refer to Appendices for detailed breakdown of sales for each food product category by brands
and markets.
12
Our Distribution Networks
Malaysia
(780)
Middle East
(11)
Africa & Others
(9)
America & Europe
(4)
Asia
(32)
13
Factory
No. Location Area Production Focus
1 Kampar 130,652 sq. ft. Cracker, Jelly, Pollytube Drink & Peas
2 Kepong 26,000 sq. ft. Chocolate Candy
3 Rawang
(Lot 100) 190,634 sq. ft. Fruit Gummy, Hard Candy & Snacks
4 Rawang
(Lot 5) 89,371 sq. ft. CocoPie, Cookies & Wafer
5 Rawang
(Lot 88) 328,676 sq. ft.
Beverage (Existing Line)
Fruit Gummy & Hard Candy (New Lines)
6 Rawang
(Lot 30) 98,630 sq.ft. Warehouse
7 Rawang
(Vacant Land) 113,700 sq. ft. Warehouse (2018)
Our Manufacturing & Warehouse Facilities
As part of Cocoaland’s plans, the new 4-storey building on Lot 88 of Rawang has been used for
the new production lines of Fruit Gummy (3rd production line) and Hard Candy (2nd production
line).
A new piece of land in Rawang was acquired in 2011 for the construction of the warehouse and
is expected to be ready in 2018.
14
Our Manufacturing & Warehouse Facilities
Factory #1 - Kampar Factory #2 - Kepong
Factory #3 – Lot 100, Rawang Factory #4 - Lot 5, Rawang
15
Our Manufacturing & Warehouse Facilities
Factory #5 – Lot 88, Rawang Vacant Land for Warehouse, Rawang
Factory #6 – Lot 30, Rawang
18
Y-o-Y Financial Performance
Period Ended
(RM million)
Audited
12 Dec 2014
(12 months)
Unaudited
31 Dec 2015
(12 months)
Y-o-Y
Change
Revenue 260.76 261.64 +0.33%
Gross Profit 62.58 82.12 +31.22%
Gross Profit Margin 23.99% 31.38% N/A
Operating Profit (EBIT) 28.12 43.52 +54.76%
Operating Profit Margin 10.78% 16.63% N/A
Profit Before Tax 30.64 44.76 +46.08%
Profit Before Tax Margin 11.75% 17.10% N/A
Profit After Tax 21.92 32.72 +49.34%
Net Profit Attributable To Shareholders 21.92 32.72 +49.34%
EPS (Sen) 9.58 14.30 +49.27%
The Group’s profit before taxation of RM44.76 million for the current financial year under review registered a
46.08% increase over the previous corresponding period. This was mainly due to higher sales volume and
better average selling price in own brand’s gummy although decrease in beverage’s revenue from Contract
Manufacturing Business. The improvement of profitability was also partly due to higher profit margin sales
mix and reduction of raw materials cost.
19
Q-o-Q Financial Performance
Quarterly Period
(RM million)
4Q
FY2013
1Q
FY2014
2Q
FY2014
3Q
FY2014
4Q
FY2014
1Q
FY2015
2Q
FY2015
3Q
FY2015
4Q
FY2015
Revenue 66.95 59.25 65.07 63.78 72.65 67.74 61.66 58.92 73.32
Gross Profit 17.19 13.41 13.32 16.24 19.61 19.84 18.51 16.68 27.08
Gross Profit Margin 25.68% 22.63% 20.47% 25.46% 26.99% 29.28% 30.01% 28.31% 36.93%
Operating Profit (EBIT) 10.06 4.19 5.73 6.67 11.54 9.63 9.36 6.14 14.26
Operating Profit Margin 15.03% 7.07% 8.80% 10.46% 15.88% 14.21% 15.18% 10.42% 19.45%
Profit Before Tax 10.12 4.66 6.21 6.71 13.06 10.60 10.42 9.23 14.49
Profit Before Tax Margin 15.12% 7.86% 9.54% 10.52% 17.97% 15.64% 16.89% 15.67% 19.76%
Profit After Tax 7.96 3.41 4.44 4.22 9.85 8.01 7.54 6.57 10.59
Net Profit Attributable To
Shareholders 7.96 3.41 4.44 4.22 9.85 8.01 7.54 6.57 10.59
EPS (Sen) 4.64 1.99 2.59 2.46 5.74 3.50 3.30 2.87 4.63
Historically, the 4th quarter of a calendar year is able to register higher revenue due to rising
demand from consumers towards the year-end festive season and early delivery of products
ahead of the new year celebration in the 1st quarter of the following year.
20
Financial Position
FYE 31 December / period ended
(RM million)
Audited as at
31 Dec 2012
Audited as at
31 Dec 2013
Audited as at
31 Dec 2014
Unaudited
as at
31 Dec 2015
Current Assets 118.64 105.14 122.49 121.46
Current Liabilities 38.10 39.43 35.66 38.48
Current Ratio (Times) 3.11 2.67 3.43 3.15
Short Term Debt 0 0 0 0
Long Term Debt 0 0 0 0
Total Debt 0 0 0 0
Total Equity (Including MI) 196.16 207.56 218.33 202.68
Total Debt to Total Equity Ratio n/a n/a n/a n/a
Cash Reserves 26.10 23.88 31.29 40.42
Net Cash / (Net Debt) 26.10 23.88 31.29 40.42
Net Cash per Share (RM) 0.15 0.14 0.18 0.17
Shareholders' Funds 196.16 207.56 218.33 202.68
Number of Share 171.60 171.60 171.60 228.8
Net Assets Per Share (RM) 1.14 1.21 1.27 0.89
The Company maintain a strong net cash position as at the end of financial year for the past 4
years.
21
Financial Liquidity
FYE 31 December / period ended
(RM million)
Audited
FY2012
Audited
FY2013
Audited
FY2014
Unaudited
31 Dec 2015
Operating Profit Before Working Capital Changes 37.43 39.34 42.76 59.08
Net Cash Flow From Operating Activities 10.32 38.01 10.51 11.52
Net Cash Flow Used In Investing Activities (27.20) (40.29) (3.18) (2.90)
Net Cash Flow Used In Financing Activities - - - -
Net increase/(decrease in) Cash and Cash Equivalent (16.88) (2.28) 7.33 8.62
Cash and Cash Equivalent at Beginning of Period 42.98 26.10 23.88 31.29
Effect of Exchange Rate - 0.06 0.08 0.51
Cash and Cash Equivalent At End of Period 26.10 23.88 31.29 40.42
Slightly higher net cash inflow from operating activities in 2015 was mainly due to :
- Higher profit before tax [FY2015 = RM44.76m FY2014 = RM30.64m]
- Decrease in inventories [FY2015 = RM1.25m FY2014 = RM0.70m]
- Increase/(Decrease) in receivables [FY2015 = RM5.58m FY2014 = (RM12.00m)]
Despite higher dividend paid [FY2015 = (RM48.62m) FY2014 = (RM11.15m)]
Lower net cash outflow in investing activities in 2015 was mainly due to decrease in purchase of
property, plant and equipment [FY2015 = (RM2.93m) FY2014 = (RM3.14m)]
23
Consistent Growth in Revenue
0.000
50.000
100.000
150.000
200.000
250.000
300.000
2007 2008 2009 2010 2011 2012 2013 2014 2015
121.270 128.717 133.176 142.259
173.994
223.208
254.449 260.760 261.645
RM
milli
on
Revenue
Since Cocoaland was listed on Bursa Malaysia in 2005, its revenue has achieved consistent
year-on-year growth through various economic cycles.
24
Uninterrupted Profitability
0.000
5.000
10.000
15.000
20.000
25.000
30.000
35.000
2007 2008 2009 2010 2011 2012 2013 2014 2015
8.835 8.685
19.693
9.819
19.192 21.218 22.050 21.918
32.721
RM
milli
on
Net Profit Attributable to Shareholders
Since Cocoaland was listed on Bursa Malaysia in 2005, it has never suffered losses.
25
Consistent Growth of Shareholders’ Fund
0.000
50.000
100.000
150.000
200.000
250.000
2007 2008 2009 2010 2011 2012 2013 2014 2015
83.051 88.237
101.159
176.213 188.669
196.160 207.564
218.331
202.680
RM
milli
on
Shareholder Funds
An uninterrupted profitability track record has enabled Cocoaland to build up its shareholders’ fund
year-on-year, coming to RM202.68 million (after special dividend payout amounting to RM34.32
million in 2015) as at end December 2015 coupled with the increase of its share capital base in 2010.
26
Past 5-Year Financial Performance
FYE 31 December / period
ended (RM million)
Audited
FY2010
Audited
FY2011
Audited
FY2012
Audited
FY2013
Audited
FY2014
Unaudited
FY2015
Revenue 142.25 173.99 223.20 254.45 260.76 261.64
Gross Profit 33.77 43.31 53.74 55.18 62.58 82.12
Gross Profit Margin 23.74% 24.89% 24.07% 21.69% 23.99% 31.38%
Profit Before Tax 8.30 21.65 27.99 29.28 30.64 44.76
Profit Before Tax Margin 5.83% 12.44% 12.54% 11.51% 11.75% 17.10%
Profit After Tax 9.81 19.19 21.21 22.05 21.91 32.72
Net Profit Attributable To
Shareholders 9.81 19.19 21.21 22.05 21.91 32.72
Adjusted EPS (sen) 4.28 8.38 9.27 9.63 9.58 14.30
Note: The adjusted EPS is calculated based on enlarged share capital of 228.8 million ordinary shares
adjusted retrospectively to generate a fair year to year comparison.
27
Adjustment To Financial Performance (Excluded Disposal Effects)
FYE 31 December / period
ended (RM million)
Audited
FY2010
Audited
FY2011
Audited
FY2012
Audited
FY2013
Audited
FY2014
Unaudited
FY2015
Revenue 142.25 173.99 223.20 254.45 260.76 261.64
Gross Profit 33.77 43.31 53.74 55.18 62.58 82.12
Gross Profit Margin 23.74% 24.89% 24.07% 21.69% 23.99% 31.38%
Operating Profit (EBIT) 7.28 19.04 25.97 25.53 28.12 43.52
Operating Profit Margin 5.12% 10.94% 11.64% 10.03% 10.78% 16.63%
Less: Disposal Gain/(Loss)
(Non-Recurring Item) (1.46) 0.17 0.02 0.04 0.01 0.04
Normalised Operating Profit 8.74 18.87 25.95 25.49 28.11 43.48
Normalised Operating Profit
Margin 6.14% 10.84% 11.63% 10.02% 10.77% 16.61%
Normalised Profit After Tax 11.27 19.02 21.20 22.09 21.90 32.68
Normalised Net Profit
Attributable to Shareholders 11.27 19.02 21.20 22.09 21.90 32.68
The decline of profitability in FY2010 was mainly due to higher raw material costs, losses incurred from
disposal of joint venture in China and higher start-up cost incurred for the new Beverage production line
which began commercial production in year 2010.
28
Summary of Financial Position
FYE 31 December / period
ended (RM million)
Audited
FY2010
Audited
FY2011
Audited
FY2012
Audited
FY2013
Audited
FY2014
Unaudited
FY2015
Non-Current Assets 78.16 101.04 118.68 146.93 139.13 129.64
Current Assets 124.20 118.00 118.64 105.14 122.49 121.46
Current Liabilities 26.07 30.30 38.10 39.43 35.66 38.48
Current Ratio (Times) 4.76 3.89 3.11 2.67 3.43 3.15
Short Term Debt 0.05 0 0 0 0 0
Long Term Debt 0 0 0 0 0 0
Total Debt 0.05 0 0 0 0 0
Total Equity (Including MI) 176.21 188.67 196.16 207.56 218.33 202.68
Total Debt/Total Equity (Times) 0.00 n/a n/a n/a n/a n/a
Cash reserves 71.14 42.98 26.10 23.88 31.29 40.42
Net Cash 71.09 42.98 26.10 23.88 31.29 40.42
Shareholders' Funds 176.21 188.67 196.16 207.56 218.33 202.68
Net Assets/Share (RM) 1.03 1.10 1.14 1.21 1.27 0.89
Number of Share (million) 171.60 171.60 171.60 171.60 171.60 228.8
The non-current assets (mainly fixed assets) and current assets (mainly cash) have increased
in 2010 due to the installation of a new Beverage production line (RM26.1 million) and
RM70.848 million gross proceeds were raised through the issuance of cumulative 43% new
shares in 2010.
29
Summary of Cash Flow Results
FYE 31 December / period
ended (RM million)
Audited
FY2010
Audited
FY2011
Audited
FY2012
Audited
FY2013
Audited
FY2014
Unaudited
FY2015
Operating Profit Before
Working Capital Changes 16.74 27.44 36.03 39.34 42.76 59.08
Net Cash Flow From
Operating Activities 10.91 2.33 10.32 38.01 10.51 11.52
Net Cash Flow From/(Used In)
Investing Activities 45.50 * (30.43) (27.20) (40.29) (3.18) (2.90)
Net Cash Flow From/(Used In)
Financing Activities (0.09) (0.06) - - - -
Net increase/(decrease in)
Cash and Cash Equivalent 56.32 (28.16) (16.88) (2.28) 7.33 8.62
Cash and Cash Equivalent At
Beginning of Period 14.82 71.14 42.98 26.10 23.88 31.29
Effect Of Exchange Rate - - - 0.06 0.08 0.51
Cash and Cash Equivalent
At End of Period 71.14 42.98 26.10 23.88 31.29 40.42
* The sharp increase of investing cash inflow in FY2010 was mainly due to the new funds raised
from private placement (RM70.848 million gross proceeds via issuance of 51.6 million new
shares) net of RM26.1 million CAPEX incurred in 2010.
30
FYE 31 December / period
ended (RM million)
Audited FY2012
(12 months)
Audited FY2013
(12 months)
Audited FY2014
(12 months)
Unaudited
FY2015
(12 months)
Net Revenue
Manufacturing 189.76 215.77 214.63 201.33
Trading 131.46 145.63 164.08 177.15
Investment Holding 10.00 10.00 17.00 50.00
Less: Inter-Segment Revenue (108.02) (116.95) (134.95) (166.84)
Total Consolidated Revenue 223.20 254.45 260.76 261.64
Segment Result
Manufacturing 16.30 10.71 9.85 11.12
Trading 11.81 19.37 21.41 34.83
Investment Holding 10.15 9.44 16.41 49.00
Less: Elimination (10.27) (10.24) (17.03) (50.19)
Total Consolidated Profit Before Tax 27.99 29.28 30.64 44.76
Segmental Performance
Manufacturing Segment (In FY2015) The Group’s manufacturing segment contributed lower revenue was mainly due to the reduction in trading
volume from its Contract Manufacturing Business of beverage division. Profit before taxation was higher as
compared to its previous year mainly attributable to cost reduction in sugar and savings in energy cost.
Trading Segment (In FY2015) Trading segment achieved a higher revenue mainly attributable to the increase in gummy’s trading volume from
overseas market. Higher profit before taxation was mainly due to higher profit margin sales mix coupled with
additional gain on foreign currencies exchange.
32
Consistent Dividend Payout
Year Total Net Dividend
Per Share (sen)
EPS
(sen)
Payout Ratio
(%)
Amount (RM)
(Cash Outflow)
2006 4.00 10.17 39% 3,456,000
2007 4.00 7.36 54% 3,504,000
2008 4.00 7.24 55% 3,552,000
2009 10.00 16.41 61% 9,000,000
2010 4.40 7.39 60% 4,920,300
2011 5.50 11.18 49% 9,438,000
2012 6.25 12.36 50% 10,725,000
2013 6.50 12.85 51% 11,154,000
2014 7.50 12.78 59% 12,870,000
2015 8.00* 14.30 56% 16,874,000
2015 20.00
(Special Dividend) 34,320,000
Total 80.15 112.04 72% 119,813,300
*Note: The 3rd interim single-tier dividend of 3.0 sen per ordinary share in respect of the
financial year ended 31 December 2015 will be paid on 5 April 2016.
34
Enhance the range
of choices for Fruit
Gummy, Hard
Candy, CocoPie and
Beverage products
Establish larger
customer base
in China, Indonesia
& Vietnam
Explore New
OEM/ODM
Businesses
Cocoaland’s Future Plans (2016 ~ 2018)
1
2
3
35
Increase Production Capacity Usage for
Hard Candy & Fruit Gummy
Product Group Hard Candy Fruit Gummy Production Lines
Capital Expenditure RM 15 million RM 29 million New machines
Increase in Production
Capacity
(per annum)
3.6 million kg
4.3 million kg
From new machines:
(a) Hard Candy = 1 line
(b) Fruit Gummy = 1 line
Original Production Capacity
(per annum) 1.0 million kg 4.5 million kg
(a) Hard Candy = 1 line
(b) Fruit Gummy = 2 lines
Total Production Capacity
(per annum) 4.6 million kg
8.8 million kg
(a) Hard Candy = 2 lines
(b) Fruit Gummy = 3 lines
Utilisation Rate Based on
Original Production Capacity
(per annum)
0.9 million kg
(90%)
4.3 million kg
(95%)
Commercial Run of New
Machines 4Q 2012 2Q 2013
The increase in production capacity had contributed to the Group’s revenue from FY2014
onwards after commercialisation of new fruit gummy and hard candy production lines.
36
Increase Penetration in Export Markets
CHINA
VIETNAM INDONESIA
Promote the sale of fruit
gummy, chocolate, cookies,
CocoPie, snack and wafer via
advertisement and
promotional activities
Hanoi & Ho Chi Minh City
Promote the sale of fruit
gummy and CocoPie through
our existing fully owned trading
company and subsidiary
Jakarta, Pekan Baru & Batam
Promote the sale of fruit
gummy via organic growth
from existing and new
customers
Canton, Shanghai & Beijing
38
Changes in Share Capital
Timeline Corporate Exercise
No. of Shares
Issued
(million)
Issued & Paid
Up Capital
(RM million)
2005 Listed on Second Board 90.0 45.0
2006
Bonus Issue of 30 million shares on the
basis of 1 new Cocoaland share for
every 3 existing Cocoaland share held.
Transferred to Main Board
120.0 60.0
April 2010 Issue of 12.0 million shares at RM 1.35
per share (Private placement) 132.0 66.0
November
2010
Issue of 39.6 million shares at RM 1.38
per share to F&N Holdings Berhad
(Private placement)
171.6 85.8
November
2015
Bonus Issue of 57.2 million shares on
the basis of 1 new Cocoaland share for
every 3 existing Cocoaland share held.
228.8 114.4
39
Completion of 1-for-3 Bonus Issue In 2015
Corporate Exercise No. of Shares
Issued (million)
Issued & Paid
Up Capital
(RM million)
As at 20 August 2015 171.6 85.8
Proposed bonus Issue of 57.2 million new ordinary
shares of RM0.50 each on the basis of 1 bonus share for
every 3 existing Cocoaland shares held
57.2 28.6
Enlarged issued and paid-up capital 228.8 114.4
The 1-for-3 bonus issue exercise was completed on 13 November 2015 and it is capitalised
from the Company’s share premium account of RM44.355 million as at 31 December 2014. The
bonus issue beside aims to reward shareholders for their loyalty and support to Cocoaland, it
also help to enhance the trading liquidity and marketability of Cocoaland shares in the
secondary market.
Base on cum bonus issue market price of RM2.96, the ex-bonus price of Cocoaland has been
adjusted lower to = RM2.96 X ¾ = RM2.22 on the bonus issue ex-date of 9 November 2015,
which has make Cocoaland share prices become more affordable and appealing to wider and
larger group of investors.
40
Utilisation of Gross Proceeds Raised in 2010
100.0%
RM16.2 million was raised via 10% new shares issued
in April 2010
Working Capital
Share capital increased from
120.0 million to 132.0 million
ordinary shares in April 2010.
Share capital further increased from
132.0 million to 171.6 million
ordinary shares in November 2010.
65.9% 18.3%
15.6% 0.2%
RM54.648 million was raised via 30% new shares issued in November 2010
Acquisition of Machinery Acquisition of Property
Working Capital Expenses Incurred
41
Change of Shareholding (1/2)
60.0% 1.0%
39.0%
As at 30 April 2008
Founders & Family
Institutional Funds
Public
Share Capital = 120.0
million ordinary shares
39.4%
14.3%
27.2%
19.1%
As at 29 February 2016
Founders & Family Institutional Funds
F&N Holdings Bhd Public
Share Capital = 228.8
million ordinary shares
65.28
million
shares
90.21
million
shares
42
Change of Shareholding (2/2)
39.4%
14.3%
27.2%
19.1%
As at 29 February 2016
Founders & Family Institutional Funds
F&N Holdings Bhd Public
Share Capital = 228.8
million ordinary shares
(After 1-for-3 Bonus Issue)
90.21
million
shares
42.0%
7.8%
27.2%
23.0%
As at 31 July 2015
Founders & Family Institutional Funds
F&N Holdings Bhd Public
72.12
million
shares
Share Capital = 171.6 million
ordinary shares
(Before 1-for-3 Bonus Issue)
43
Strategic Roles Play by F&N Holdings Bhd
There are 2 representatives from F&N participating as board members of Cocoaland, assisting to lead long term growth and formulate strategic directions of the Company.
There are 2 F&N representatives from F&N acting as Executive Committee member of Cocoaland to help formulate business strategies, besides advising in product portfolio and major operation issues of the Company.
Cocoaland currently acts as a non-exclusive contract packer for F&N to prepare, package, pack and deliver F&N’s products in Malaysia.
44
Top 20 Shareholder List as at 29 February 2016
No Name Of Shareholder No. Of Shares %
1 Leverage Success Sdn Bhd 87,046,628 38.04
2 Fraser & Neave Holdings Bhd 62,211,466 27.19
3 Tan Booi Charn 5,801,500 2.54
4 Public Islamic Optimal Growth Fund 4,280,933 1.87
5 Rickoh Corporation Sdn Bhd 3,333,333 1.46
6 Koh Kin Lip 3,318,332 1.45
7 Citibank New York (Norges Bank 14) 3,305,600 1.44
8 Employees Provident Fund Board (Amundi Malaysia) 3,299,000 1.44
9 Mak Tian Meng 2,661,999 1.16
10 RHB Insurance Berhad 2,053,333 0.90
11 Pertubuhan Keselamatan Sosial 1,821,000 0.80
12 RHB Small Cap Opportunity Unit 1,645,733 0.72
13 Gibraltar BSN Aggressive Fund 1,639,466 0.72
14 RHB Equity Trust 1,406,666 0.61
15 Lau Kee Von 1,373,066 0.60
16 Ho Sek Kee Sdn Bhd 1,346,666 0.59
17 Chew Pui Ming 1,246,197 0.54
18 Petroliam Nasional Berhad (Amundi Malaysia) 1,200,000 0.52
19 KAF Vision Fund 1,160,000 0.51
20 AMB Smallcap Trust Fund 1,123,333 0.49
Sub Total 191,274,251 83.59%
45
Top 40 Shareholder List as at 29 February 2016
No Name Of Shareholder No. Of Shares %
21 Kumpulan Sentiasa Cemerlang Sdn Bhd 1,016,666 0.44
22 Chai Yune Loong 1,016,266 0.44
23 RHB Emerging Opportunity Unit Trust 954,000 0.42
24 Wong Yoke Chou 912,000 0.40
25 KAF First Fund 876,666 0.38
26 Gibraltar BSN Strategic Fund 821,733 0.36
27 TNB Retirement Benefit Trust Fund 804,700 0.35
28 Gibraltar BSN Life Berhad (Par Fund) 795,066 0.35
29 Koh Geok Lian 710,000 0.31
30 Bank Of New York Mellon (Mellon Acct) 637,000 0.28
31 Lau Yoke Kiew 635,681 0.28
32 Low Yoon Sun 621,993 0.27
33 Chai Koon Khow 574,100 0.25
34 Lok Siew Dhan 546,666 0.24
35 Lau Pa Sin 540,948 0.24
36 Gibraltar BSN Life Berhad (Life Fund) 537,266 0.23
37 Azman Bin Mahmood 524,444 0.23
38 Leong Meei Keing 525,243 0.23
39 Morgan Stanley & Co. International Plc 515,866 0.23
40 Globeflex Emerging Markets Small Cap, L.P. 441,600 0.19
Grand Total 205,282,155 89.71%
46
Investor Relations Contact
Mr Tai Chun Wah
Executive Director cum Finance Director
COCOALAND HOLDINGS BERHAD
41, Jalan E¼, Kawasan Perusahaan Tmn Ehsan
52100 Kepong, Selangor, Malaysia
Tel: +603-6276 6862
Fax: +603-6273 2037
Email: [email protected]
Website: www.cocoaland.com
48
Dato’ Azman bin Mahmood Chairman / Independent
Non-Executive Director
Liew Fook Meng Executive Director
Tan Sri Dato’ Sri Koh Kin Lip Independent
Non-Executive Director
Lau Kee Von Executive Director
Chow Kee Kan @ Chow Tuck Kwan Independent
Non-Executive Director
Lau Pak Lam Executive Director
Board of Directors
Lim Yew Hoe Non-Independent
Non-Executive Director
Liew Yoon Kee Executive Director
Soh Swee Hock @ Soh Say Hock Non-Independent
Non-Executive Director
Tai Chun Wah Executive Director
Soon Wing Chong Non-Independent
Non-Executive Director
Note: Lim Yew Hoe, Soon Wing Chong
and Soh Swee Hock @ Soh Say Hock
are directors representing F&N Holdings
Bhd’s interest in Cocoaland.
49
Directors’ Profile
He is a Malaysian, 68 years of age and was appointed to the Board on 8 October 2004.
He has more than 20 years of experience in the manufacturing and marketing of confectionery products. He
oversees product development through his active involvement in introducing new ideas and flavoring
processes.
He is a member of the Remuneration Committee.
Liew Fook Meng, Executive Director
He is a Malaysian, 63 years of age and was appointed to the Board on 8 October 2004 and holds a Master
degree in Business Administration from American Liberty University, USA.
He has more than 20 years of experience in the manufacturing and wholesale of confectionery products. He
started out as a partner of Lau Brothers Food Trading Co. in 1976, which was primarily involved in the
distribution of confectionery products.
In 1984, he and the other partners incorporated L.B. Food Sdn. Bhd., currently one of the subsidiaries within
the Group to take over the operations of the partnership. At the same time, he was appointed as the
Managing Director of L.B. Food Sdn. Bhd and Cocoaland Industry Sdn. Bhd. Under his stewardship over the
past 20 years, the Group has grown from a family business concern into one of the largest confectionery
manufacturers and distributors in Malaysia.
Lau Kee Von, Executive Director
Note: Mr Liew Fook Meng, Mr. Lau Kee Von, Mr. Lau Pak Lam and Mr. Liew Yoon Kee are siblings. They are also
members of the Board. Currently, they hold other directorship in Cocoaland Group of Companies and several other
private limited companies. Each of them also has direct shareholding in the Company’s substantial shareholder (i.e.
Leverage Success Sdn. Bhd) and also direct shareholdings of ordinary shares in the Company.
50
Directors’ Profile
He is a Malaysian, 58 years of age and was appointed to the Board on 8 October 2004 and holds a Master
degree in Business Administration from American Liberty University, USA.
He has more than 20 years of experience in the manufacturing and wholesale of confectionery products.
Having been involved in the convenience food manufacturing industry for over 20 years, he has established
long-standing relationships with various local retailers and wholesalers in the same industry.
Note: Mr Liew Fook Meng, Mr. Lau Kee Von, Mr. Lau Pak Lam and Mr. Liew Yoon Kee are siblings. They are also
members of the Board. Currently, they hold other directorship in Cocoaland Group of Companies and several other
private limited companies. Each of them also has direct shareholding in the Company’s substantial shareholder (i.e.
Leverage Success Sdn. Bhd) and also direct shareholdings of ordinary shares in the Company.
Lau Pak Lam, Executive Director
He is a Malaysian, 67 years of age and was appointed to the Board on 8 October 2004.
He was the Sales Executive for L.B. Food Sdn. Bhd., currently one of the subsidiaries within the Group for 5
years from 1979 to 1984. Since then, he joined B Plus Q Sdn. Bhd., currently one of the subsidiaries within
the Group as Factory Manager until 2008.
Liew Yoon Kee, Executive Director
51
Directors’ Profile
He is a Malaysian, 49 years of age and was appointed to the Board on 3 January 2012. He is a member of
the Chartered Institute of Management Accountants (CIMA), United Kingdom and Malaysia Institute of
Accountants (MIA).
He joined Cocoaland Group in 1996 as an Accountant and was subsequently promoted to Group Accountant
in 1998 and later to Finance Director in 2012. He is responsible for the Group’s daily accounting, corporate
finance, human resources and administrative functions. Prior to joining the Cocoaland Group, he was the
Accounts Executive in May Plastics Industries Berhad, a public listed company principally involved in the
business of plastic injection molding, for 4 years.
Currently, he also holds other directorships in Cocoaland Group of Companies and several private limited
companies.
Tai Chun Wah, Executive Director
52
Directors’ Profile
He is a Malaysian, 65 years of age and was appointed to the Board on 8 October 2004.
He is a member of the Institute of Chartered Accountants in England & Wales.
He began his career with Lim, Ali & Co., an auditing firm based in Johor from 1975 to 1978. He later worked
with RD Neville & Co., a firm of Chartered Accountants in Essex, England up to 1980. From 1981 to 1983, he
worked for MMC Services Limited, London, a subsidiary of Malaysian Mining Corporation Berhad. In 1983,
he was the Senior Manager of MUI Bank Berhad (now known as Hong Leong Bank Berhad). From 1983 to
1990, he was in charge of the Finance Division of Kumpulan Perangsang Selangor Berhad. From 1990 to
1996, he was the Managing Director of Worldwide Holdings Berhad, after which he was appointed as the
Chairman of Fine Access Sdn. Bhd., an investment holding company with interest in property development
business in Kuala Lumpur and Klang Valley.
Currently, he is an Independent Non-Executive Director for Jaks Resources Berhad and Kumpulan Hartanah
Selangor Berhad.
He is the Chairman of the Remuneration Committee and a member of the Nominating Committee.
Dato’ Azman bin Mahmood, Chairman / Independent Non-Executive Director
53
He is a Malaysian, 67 years of age and was appointed to the Board on 15 January 2010.
He received his early education in Sabah prior to his pursuit of higher education in Plymouth Polytechnic,
United Kingdom. Upon completion, he was awarded a Higher National Diploma in Business Studies and a
Council’s Diploma in Management Studies.
He returned to Malaysia in 1977 and joined The Standard Chartered Bank, Sandakan as a trainee assistant.
In 1978,he joined his family business and was principally involved in administrative and financial matters of
the family business. In 1985, he assumed the role as Chief Executive Officer for the family business. In 1987,
he was pivotal and instrumental in the formation of Rickoh Holdings Sdn. Bhd., the flagship company of the
family business which engaged in various core business activities ranging from properties investments,
properties letting, securities investments, oil palm plantations, sea and land transportation for crude palm oil
and palm kernel, information technology, property development, hotel business, trading in golf equipment and
accessories, and quarry operations. He is also involved in similar enterprises in his personal capacity with
some of his business associates. He is holding numerous directorships in most of these companies.
Currently, he sits on the boards as Senior Independent Non-Executive Director of IOI Properties Group
Berhad and Non-Independent Non-Executive Director of NPC Resources Berhad. He is also an Independent
Non-Executive Director of Daya Materials Berhad.
He is a member of the Audit Committee, Nominating Committee and Remuneration Committee.
Directors’ Profile
Tan Sri Dato’ Sri Koh Kin Lip, Independent Non-Executive Director
54
Directors’ Profile
He is a Malaysian, 63 years of age and was appointed to the Board on 8 October 2004. He is an approved
Company Auditor and Chartered Accountant.
He has his own audit and tax practices and has more than 30 years of practical experience in the same field.
He is also a Malaysian Insurance Institute Certified Trainer. He was a council member of the Malaysian
Institute of Accountants from 1987 to 1994. Currently, he serves as a Trustee for the Malaysian Accountancy
Research and Education Foundation. He is also a council member of the Malaysian Institute of Taxation
since 1991.
Currently, he is also an Independent Non-Executive Director of Hai-O Entreprise Berhad. He also holds
directorships in several other private limited companies.
He is the Chairman of the Audit Committee and Nominating Committee. He is also a member of the
Remuneration Committee.
Chow Kee Kan @ Chow Tuck Kwan, Independent Non-Executive Director
55
Directors’ Profile
• He is a Singaporean, 50 years of age and was appointed to the Board on 1 October 2015.
• Mr. Lim Yew Hoe holds a Bachelor of Science (Estate Management) degree from the National University of
Singapore and a MBA (Banking & Finance) from Nanyang Technological University. He began his career
with Civil Aviation Authority of Singapore by taking up various roles in research and performance
standards/horticulture and estate management. He joined the Asia Pacific Breweries Limited (now known as
Heineken Asia MTN Pte Ltd) group in 1997 as a Project Manager and had held a number of senior positions
within the group. Prior to joining Fraser & Neave Holdings Bhd as its Chief Executive Officer on 1 December
2014, he was the Managing Director of Asia Pacific Brewery (Hanoi) Limited.
• Currently, he is the Chief Executive Officer of Fraser & Neave Holdings Bhd
Lim Yew Hoe, Non-Independent Non-Executive Director
56
Directors’ Profile
He is a Malaysian, 54 years of age and was appointed to the Board on 1 December 2010. He holds a
Masters Degree in Business Administration, State University of New York at Buffalo, New York, United States
of America.
He joined IBM Malaysia in 1988, last held position as Planning Analyst. In 1992, he joined Lion Group of
Malaysia as Senior Business Analyst and held various management positions within Lion Group of
Companies of which his last appointment was General Manager, China Investment Division. He then joined
Asia Pacific Breweries Limited in 2004 as Assistant General Manager (Projects) and his last appointment was
General Manager (Business Development, China).
He joined Fraser & Neave Holdings Berhad in 2010 as Senior Manager, Projects and he is currently the Head
of Group Corporate Services.
He is the member of the Remuneration Committee.
Soh Swee Hock @ Soh Say Hock, Non-Independent Non-Executive Director
He is a Malaysian, 54 years of age and was appointed to the Board as Alternate Director to Lim Yew Hoe on
1 October 2015.
He holds a Degree in Bachelor's of Arts (majoring in Accountancy) from the University of Stirling, Scotland,
UK and is a Member of the Malaysian Institute of Certified Public Accountant (MICPA). Mr Soon has over 25
years' experience in Finance in various industries. He started his first career at KPMG and subsequently
progressed further with Inchcape Eastern Agencies, DHL Worldwide Express, Western Digital and Dutch
Lady Industries. Prior to joining Fraser & Neave Holdings Bhd, Mr Soon was the Chief Financial Officer of
Hong Leong Industries Berhad.
Soon Wing Chong, Non-Independent Non-Executive Director