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  • Sime Darby Berhad (Company No. 752404-U)

  • SIME DARBY BERHAD Annual Report 20152

    About This Report

    As part of our on-going efforts to improve corporate reporting, the Group has focused on developing transparency and effectiveness in its second year into Integrated Reporting. In line with our adoption of best practices and our commitment towards sustainability, this Report is our sincere acknowledgement of the symbiotic relationship that exists between the need to protect and preserve the environment, the impetus for economic development and the need to balance the rights of humankind.

    This Report therefore, aims to disclose where we want to be and how we plan to achieve our targets. We have provided an insight into how our core values drive our strategic objectives and in turn, how this is translated into value creation - both for us and our various stakeholders.

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    Sime Darby optimises opportunities to create value by pursuing an innovative, integrated and inter-connected strategy across our portfolio. We focus on Group investments and activities that link our sector and geographical business operations with an aim to deploy our capital more efficiently – ultimately delivering group-wide synergies.

    REALISE FULL POTENTIAL OF CORE BUSINESSES We capitalise on synergies across our operations to realise the full potential of our portfolio of businesses. We achieve operational excellence by leveraging on our strategic relationships and our sustainability commitments.

    STRIVE FOR LEADERSHIP

    POSITION Our ambition is to be a sustainable, leading player

    and a thought leader in all the markets in which we operate. We secure and reinforce our

    leadership position by leveraging on our strengths and competitive advantages which in turn create

    further value for our stakeholders.

    PURSUE STRATEGIC

    PORTFOLIO GROWTH

    We optimise opportunities to grow our businesses while being guided by the principles of sustainable development. We are focused on

    generating and cultivating opportunities to expand into new growth markets, supported by

    our sound knowledge and experience from our well-established and diverse portfolio.

    INSTITUTE A PERFORMANCE AND VALUE DRIVEN CULTURE Our people are motivated to drive the business forward whilst upholding the highest ethical values in all business interactions and decisions. Anchored by our values of respect & responsibility, integrity, excellence and enterprise, we work together to achieve higher organisational performance. Sime Darby nurtures teamwork, unity and capabilities to its core values.

    CONNECTING OPPORTUNITIES

  • SIME DARBY BERHAD Annual Report 20154

    Sime Darby is a diversified multinational and a key player in the Malaysian economy, with businesses in key growth sectors, namely, plantation, industrial equipment, motors, property and energy & utilities with operations in 26 countries and 4 territories.

    Committed to developing a sustainable future, Sime Darby strives to maintain an equitable balance between increasing value for shareholders and responsible development that brings value to society and safeguards the environment. Sime Darby is one of the largest companies listed on Bursa Malaysia and has a market capitalisation of RM52.9 billion (USD14.0 billion) as at 30 June 2015.

    ABOUT SIME DARBY

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    ationOUR MISSION

    OUR VALUES

    At Sime Darby, the core values that we live up to throughout our operations and businesses worldwide are Integrity, Respect & Responsibility, Excellence and Enterprise

    Integrity

    values in all our business interactions and decisions

    Respect & Responsibility

    the environment that we operate in (internally and externally) and committing to being responsible in all our actions

    Excellence

    our businesses through our unwavering ambition to achieve outstanding personal and business results

    Enterprise

    agility, challenging set boundaries

    portfolio of sustainable businesses

    high ethical values

    returns through operational excellence and high performance standards

    realise their full potential

    To be a leading multinational corporation delivering sustainable value to all stakeholders

    OUR VISION

  • SIME DARBY BERHAD Annual Report 20156

    CONTENTS

    Visit our website for more information on the businesses, including:

    Investor presentations Shareprice Press releases Sustainability report

    www.simedarby.com Developing Sustainable Futures

    STRATEGIC REPORT

    8 Group Highlights 10 Group Overview 12 Chairman’s Message 16 President & Group Chief Executive’s Review 20 Global Trends and Market Outlook 22 Managing Our Material Issues 24 Group Business Model 26 Group Strategy 28 Strategy in Action 34 Board of Directors 36 Management Team 42 Group Performance Overview

    i. Group Financial Review ii. People iii. Environment iv. Sustainable Thought Leadership

    70 Divisional Operations Review

    CORPORATE GOVERNANCE

    123 Statement on Corporate Governance 127 Directors’ Profiles 132 Management Team Profiles 159 Governance & Audit Committee Report 165 Nomination & Remuneration Committee

    Report 170 Sustainability Committee Report 174 Risk Management Committee Report 177 Statement on Risk Management and Internal

    Controls 185 Our Management of Risk

    FINANCIAL REPORTS

    193 Statement of Directors’ Responsibilities 195 Directors’ Report 200 Statement by Directors 201 Statutory Declaration 202 Independent Auditors’ Report 204 Statements of Profit or Loss 205 Statements of Comprehensive Income 206 Statements of Financial Position 208 Statements of Changes in Equity 211 Statements of Cash Flows 215 Notes to the Financial Statements 385 Supplementary Information

    OTHER INFORMATION

    386 Notice of Annual General Meeting 392 Analysis of Shareholdings 395 Additional Compliance Information 398 Share Price Movement & Financial Calendar 399 Properties of the Group 418 Notice to Shareholders Under the Personal

    Data Protection Act 2010 420 Compliance with the Principles and

    Recommendation of the Malaysian Code on Corporate Governance 2012

    422 United Nations Global Compact (UNGC) Communication on Progress

    423 Global Reporting Initiative (GRI) 426 Independent Assurance Report

    Form of Proxy

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    BOARD OF DIRECTORS

    Tan Sri Dato’ Abdul Ghani Othman Independent Non-Executive Chairman

    Tan Sri Dato’ Sri Dr Wan Abdul Aziz Wan Abdullah Non-Independent Non-Executive Deputy Chairman

    Tan Sri Samsudin Osman Non-Independent Non-Executive Director

    Tan Sri Dato’ Dr Wan Mohd Zahid Mohd Noordin Non-Independent Non-Executive Director (To retire upon conclusion of the 9th AGM on 23 November 2015)

    Tan Sri Datuk Amar (Dr) Tommy Bugo @ Hamid Bugo Independent Non-Executive Director (To retire upon conclusion of the 9th AGM on 23 November 2015)

    Tan Sri Datuk Dr Yusof Basiran Non-Independent Non-Executive Director

    Dato’ Henry Sackville Barlow Senior Independent Non-Executive Director (To retire upon conclusion of the 9th AGM on 23 November 2015)

    Datuk Zaiton Mohd Hassan Non-Independent Non-Executive Director

    Dato Sri Lim Haw Kuang Independent Non-Executive Director

    Dato’ Azmi Mohd Ali Non-Independent Non-Executive Director

    Dato’ Rohana Tan Sri Mahmood Independent Non-Executive Director

    Ir Dr Muhamad Fuad Abdullah Independent Non-Executive Director

    Tan Sri Dato’ Seri Mohd Bakke Salleh Executive Director

    PRESIDENT & GROUP CHIEF EXECUTIVE

    Tan Sri Dato’ Seri Mohd Bakke Salleh

    SECRETARY

    Puan Norzilah Megawati Abdul Rahman (LS 0009247)

    REGISTERED OFFICE

    19th Floor, Wisma Sime Darby Jalan Raja Laut 50350 Kuala Lumpur, Malaysia

    Telephone : +(603) 2691 4122 Facsimile : +(603) 2719 0044 Email : communications@simedarby.com

    Website : www.simedarby.com

    SHARE REGISTRAR

    Tricor Investor Services Sdn Bhd (Company No. 118401-V) Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia

    Telephone : +(603) 2783 9299 Facsimile : +(603) 2783 9222 Email : is.enquiry@my.tricorglobal.com

    AUDITORS

    PricewaterhouseCoopers (AF 1146) Chartered Accountants Level 10, 1 Sentral, Jalan Travers Kuala Lumpur Sentral 50706 Kuala Lumpur, Malaysia

    Telephone : +(603) 2173 1188 Facsimile : +(603) 2173 1288

    FORM OF LEGAL ENTITY

    Incorporated on 7 November 2006 as a private company limited by shares under the Companies Act, 1965 and converted into a public company limited by shares on 5 April 2007

    STOCK EXCHANGE LISTING

    Listed on the Main Market of Bursa Malaysia Securities Berhad since 30 November 2007

    Stock Code : 4197 Stock Name : SIME

    PLACE OF INCORPORATION AND DOMICILE

    Malaysia

    AS AT 21 SEPTEMBER 2015