A N N U A L R E P O R T

2010/2011

Sustainability through Diversity

Compared to rainforests and coral reefs, wetlands are considered the most biologically diverse of all ecosystems. In fact, one can think of wetlands as “biological supermarkets”, as they provide immense volumes of food for a diverse range of animal species, such as the Kingfisher, that use these wetlands for part of or all of their life-cycle. Similarly, our diversified interests across some of the most dynamic industries in the world as well as our extensive operations in the ASEAN region offer great opportunities for sustained growth.

Sustainability through Diversity

Financial Calendar

Announcement of Financial Results

First quarter 07 February 2011 Second quarter 05 May 2011Third quarter 05 August 2011Fourth quarter 04 November 2011

Dividend

Interim & Special Dividend• Announcement 05 May 2011• Entitlement 07 July 2011• Payment 03 August 2011

Proposed Final & Special Dividend• Announcement 21 December 2011• Entitlement 20 January 2012• Payment 17 February 2012

Press Conferences & Analyst Briefings Held

Half Year 06 May 2011Full Year 04 November 2011

General Meeting Annual 13 January 2012

Contents 002 Five Years’ Statistics Group Financials003 Five Years’ Statistics Group Financial Charts

Corporate Review006 Chairman’s Statement 016 Profile of Board of Directors022 Corporate Information023 Corporate Structure

Business Review026 CEO’s Message030 Soft Drinks036 Dairies Malaysia042 Dairies Thailand046 Property

Corporate Responsibility050 Corporate Responsibility Initiative

Corporate Governance062 Statement on Corporate Governance 068 Report on Audit Committee071 Statement on Internal Controls073 Statement on Directors’ Responsibility

Financial Statements076 Directors’ Report082 Statement by Directors and Statutory Declaration083 Independent Auditors’ Report085 Income Statements087 Statements of Comprehensive Income088 Statements of Financial Position090 Statements of Changes in Equity092 Statements of Cash Flows095 Notes to the Financial Statements

Other Information160 List of Properties163 Shareholdings Statistics165 Share Price Charts

Notice of Annual General Meeting

Proxy Form

030 036 042

SOFT DRINKS DaIRIeS MaLaYSIa DaIRIeS THaILaND

046

PROPeRTY

Year Ended 30 September 2011 2010 2009 2008 2007

Results (RM million)*

Revenue 3,915.4 4,004.7 3,737.1 3,674.2 2,931.5Profitbeforetaxation(PBT) 463.7 ^777.9 299.8 239.7 220.9Attributableprofits 383.1 ^695.3 224.4 166.8 152.9

Dividend

Pershare- Earnings-basic (sen) 106.9 195.1 63.0 46.8 42.9- Earnings-diluted (sen) 106.0 194.2 62.9 46.8 NA- Dividend-net (sen) **97 164.5 41.8 40.1 34.2- Dividend-cover (times) 1.1 1.2 1.5 1.2 1.3

Balance Sheet (RM million)

Sharecapital 360.4 357.3 356.5 356.5 356.5Shareholders’equity 1,558.8 1,796.5 1,293.1 1,182.2 1,157.0Totalassets 2,475.8 2,968.9 2,759.9 2,514.1 2,455.7Longtermborrowings 150.0 150.0 360.4 359.4 83.1Netassetspershare (RM) 4.33 5.03 3.63 3.32 3.25

Ratio

PBTonrevenue (%) 11.8 19.4 8.0 6.5 7.5Returnonshareholders’equity (%) 24.6 38.7 17.4 14.1 13.2Netdebttoequityratio (%) - - 26.7 20.1 17.0

Five Years’ StatisticsGroup Financials

* Resultsofprioryearswereonatotalgroupbasis,whichincludecontinuinganddiscontinuedoperations.** Includedproposeddividendof62sen,whichwillonlyberecognisedinthefinancialstatements uponshareholders’approval ^ IncludedexceptionalgainondivestmentofglasscontainerbusinessofRM382million

NA Notapplicable

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20112010

20092008

2007

42.9

34.2 46

.840

.1

63.0

41.8

195.

1

106.

997

.0

Earnings (Basic) Net Dividend

164.

5

Earnings Per Share / Net Dividend(sen)

20112010

20092008

2007

3.25 3.

32

3.63

5.03

4.33

Net Assets Per Share(RM)

20112010

20092008

2007

13.2 14

.1 17.4

38.7

24.6

Return On Shareholder’s Equity (%)

20112010

20092008

2007

3,91

5.4

4,00

4.7

3,73

7.1

2,93

1.5

3,67

4.2

Revenue (RMmillion)

20112010

20092008

2007

1,15

7.0

1,18

2.2

1,29

3.1

1,79

6.5

1558

.8

2,45

5.7

2,51

4.1 2,75

9.9 2,96

8.9

2,47

5.8

Shareholders’ Equity Total Assets

Shareholders’ Equity / Total Assets(RMmillion)

20112010

20092008

2007

7.5 6.5

8.0

19.4

11.8

20112010

20092008

2007

220.

915

2.9 23

9.7 29

9.8

777.

9

463.

7

166.

8 224.

4

695.

3

383.

1

PBT Attributable Profits

PBT / Attributable Profits (RMmillion)

PBT On Revenue(%)

Gain on divestment of glass container business

Five Years’ StatisticsGroup Financial Charts

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Frominternalexpertisetoexternalacclaim,wehavebeendeliveringperformancesunparalleledbyothers.

Soaring to greater heights

CorporateReview

Chairman’s Statement 006

Profile Of Board Of Directors 016

Corporate Information 022

Corporate Structure 023

Chairman’sStatement For the F&N Group, it was another

bumper year and I am pleased to report that we were able to maintain our stellar performance, registering

double digit growth, posting an unprecedented 11th consecutive year

of record operating profit.

“”

Aseconomiesoftheworldcontinuetobethreatenedwithincreasedfinancialvolatilityfromthemeltdownoftraditionallystrongmarkets,ASEANeconomiesgrew,benefittingfromthevibranceoftheeconomicexpansionofChinaandIndia.

InMalaysia,theeconomygrewatanaveragerateof4.5percentfueledbyincreasedpublicsectorinvestmentandgovernmentinitiativestodevelopahighincomeeconomy.

InThailand,improveddomesticdemand,andbothconsumptionaswellasinvestmenthavebeenstrong,underpinnedbyahighleveloffarmincome,highemployment,andbuoyantconsumerandbusinessconfidencethroughouttheyearuntilOctober2011whenfloodsinundatedthecountry.

FortheF&NGroup,itwasanotherbumperyearandIampleasedtoreportthatwewereabletomaintainourstellarperformance,registeringdoubledigitgrowth,postinganunprecedented11thconsecutiveyearofrecordoperatingprofits.

RevenuefromthecorebusinessesofsoftdrinksanddairiesincreasedeightpercentfromthelastfinancialyeartoRM3.9billionwhileoperatingprofitrose14percenttoRM444million.Profitaftertaxationgrew20percenttoRM369million.Thesoftdrinksrevenuejumped16percentoverthepreviousyearwhiletheoveralldairiesdivisiongrewtwopercentwithbroad-basedgrowthinDairiesThailandspurringa13percentincreaseinrevenuewhilsttheMalaysiabusinesscontractedonaccountofpriceincreasestoabsorbhigherinputcost.EarningsfrompropertiesrosebyRM37millionduetothedisposalofBramptonHoldingsSdnBhdandproceedsfromthesaleoftheglassfactorylandinPetalingJaya.

DelIverING value to ShareholDerSGivenourrecordresults,theDirectorsrecommendafinalsingletierdividendof47senpersharetogetherwithaspecialsingletierdividendof15senpershare.IfapprovedbyshareholdersattheforthcomingAnnualGeneralMeeting,thetotalnormaldividendfortheyearwouldbe67senpershare,anincreaseof23percentfrom54.5senpersharepaidinthepreviousfinancialyear.Asforthespecialdividend,thetotalwouldbe30senpershare,comprisingoftheentiregainsfromthedisposalofFraserBusinessParkdevelopmentprojectandtheglassfactoryland.Similarlylastyear,aspecialdividendofRM1.10persharewaspaid,arisingfromdivestmentoftheglasscontainerbusiness.ThehightotaldividendpayoutreflectstheBoard’sconfidenceintheGroup’sfutureperformanceandisinlinewiththeobjectivetooptimisetheGroup’scapitalstructureandrewardshareholders’loyalty.

TheBoardwillendeavourtomaintaindividendpayoutinthecomingyears,intandemwiththeGroup’sperformance.WiththestrongoperatingcashflowsgeneratedbyourF&Bbusinesses,

Chairman’s Statement

IamconfidentandoptimisticthattheGroupwillcontinuetobuildoneffortstocapitaliseonnewgrowthopportunitiesanddisciplinedcashflowmanagementwhilereturningevenstrongervaluetoourshareholders.

Theshareholdersmaynotethatduringthelastfinancialyear,oursharepriceincreasedRM2.04fromRM14.46on30September2010toRM16.50thisyear.

INveStING For the Future CommissioningoftheRM350millionPulauIndahdairiesplantcommencedinNovemberandisontrackforfullcommercialproductionwithinthesecondhalfof2012.ThePulauIndahplantmirrorstheachievementsoftheRojanaplantandshowcasesamyriadofinnovativegreentechnologythatpromotessignificantgainsinwater,energyandenvironmentalconservation.TogetherwithourRojanaoperation,thecompletionofthePulauIndahplantwillpropelF&Namongtheranksoftheworld’slargestproducersofcannedmilk.

Closureofourfinancialyearon30September2011alsoheraldedanamicableconclusionofa73-yearrelationshipwithTheCoca-ColaCompany.Movingforward,theGroupwillfocusonaggressiveeffortstodrivesalesofitsexistingcoreproductsandtolaunchnewproductstoreachouttoloyalcustomersandconsumers.Gearinguptomeetthechallenge,wehaveinvestedina3-in-1monoblockPETproductionlineandtwotetrapaklinesinShahAlam.ProductionatourKotaKinabaluplantwasreactivatedandaPETlineinstalledtomeetconsumerdemandinEastMalaysia.

Additionally,ourdistributionandmarketingnetworksandchannelsarealsobeingdeepenedandwidened,andstrategiclinkagesestablishedthroughcollaborationsandexpansiontonewmarketsandterritories.TheRedBulldistributorshipfranchisesecuredinthelastfinancialyearwasonesuchsuccessfulventure.

CorPorate GoverNaNCeTheBoardofDirectorscontinuedtoestablishbenchmarksandoversighttoensuresustainabilityandmomentumforthefuture.Inaddition,theBoardofDirectorshaveundergonetrainingsessionswithcontinuingemphasisongoodgovernanceandbestpractices,andupdatesonrelevantissueswhichincludedcompetitionlaw,corporatesocialresponsibilityandsocialnetworking.

TheformationoftheGroupExecutiveCommittee(GroupExco)lastyearsawtheactiveinvolvementofthecommitteemembersinreviewingtheoperationalperformanceofthebusinessunits.Duringtheyear,fiveGroupExcomeetingswereheldduringwhichmanagementpresentedtheiroperationalupdatesandsoughtadviceonstrategicandinvestmentmatters.

InadditiontotheformalassessmentoftheeffectivenessoftheBoardandBoardCommittee,Boardpeerreviewwasincludedduringtheyear.

Animportantcomponentoftheoverallmanagementprocessesisriskmanagementandinternalcontrols.Facedwithincreasingpricevolatilityofrawmaterialsandpackagingmaterials,theBoardhasestablishedaprocurementframeworktosafeguardandmanagepurchasingrisksintheGroup.

CorPorate reSPoNSIbIlItyTheF&NGroupisevermindfulofitsresponsibilitiestowardstheenvironmentandcommunitywithinwhichweoperate.Environmentalconsiderationisanintegralpartofouroperationsandnumerous

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waterandenergyconservationmeasureshavebeeninitiatedinourbusinessoperations.Thegroupalsoaimstobuildlongtermsustainablevalueandmakepositiveimpactonitsbrandswithitsconsumersandcommunity.

outlook aND ProSPeCtSRegionaleconomicgrowthisexpectedtobesubduedgiventheuncertainEuropeanfinancialenvironment.TheF&BbusinesssentimentisalsoexpectedtobedampenedwhilefluctuationsinrawmaterialcostsandrisingcommoditypricesduetoremovalofgovernmentsubsidiesinMalaysiaisexpectedtoimpactdisposableincomesinthekeymarketsoftheGroup.

Nevertheless,wearecautiouslyoptimisticofthefutureofourbusinessesinMalaysiaandThailand.Thestart-upofthePulauIndahplantwillhelpmeetbothdomesticandregionaldemandwhileinThailand,effortswillbefocusedonrecoveryoncefloodwaterssubside.

Forthesoftdrinksbusiness,resourcesarebeingreorganisedtomeetthechangingcompetitivelandscapeandanimmediatestepdownofvolume.

TheGroupwillcontinuetopursueinnovativesalesandmarketinginitiatives,leverageonitswellestablisheddistributionnetworkandpresenceandensureeffectivecostcontrolandmanagementofproduction,operationsandrawmaterials.Wewillalsocontinuouslyinvestinhumancapital,technology,systemsandautomationinordertosustainandbuildonourcurrentperformanceinthenewfinancialyear.

aCkNowleDGemeNtSTheBoardbidsawarmfarewelltoMr.KohPohTiong,whoretiredafteranillustrious26-yearcareerwiththeF&NGroup.HehadservedasCEOofAsiaPacificBreweriesandsubsequentlyCEOoftheFood&BeverageDivisioninFraserandNeaveLimited.Mr.KohPohTiongwasappointedasaBoardmemberofFraser&NeaveHoldingsBhdinOctober2008.TheBoardwishestoplaceonrecorditsappreciationtoMr.KohPohTiongforhiscontributionandexemplaryservicetotheF&NGroup.

Mr.PascaldePetrinisucceedsMr.KohatthehelmoftheFood&BeverageDivisioninFraserandNeaveLimited.Mr.dePetrinihasvastCountryandRegionalgeneralmanagementexperienceinleadingMNCs,with11ofthoseyearsinAsia.WewishhimawarmwelcometotheF&NGroup.

TheyearunderreviewhasbeenachallengingoneandIwishtothanktheBoardofDirectorsforitswisecounselandadviceinguidingmanagementthroughthisperiod.ItgoeswithoutsayingthatourstakeholdershavealsobeeninstrumentalinthecontinuedsuccessoftheGroup.ThusIwouldliketoextendmysinceregratitudeandappreciationtoourcustomersandpartnersfortheircontinuedtrustandcommitmenttoworkwithus;toourstafffortheirprofessionalism,loyaltyanddedicationtogrowourbusiness;andlastbutnotleasttoourshareholdersfortheircontinuedsupport.

Yourssincerely

teNGku SyarIF beNDahara PerlIS SyeD baDaruDINJamalullaIl IbNI almarhum tuaNku SyeD Putra JamalullaIl

Chairman30November2011

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Kenyataan Pengerusi

Melihatkankepadasituasiekonomiduniayangmasihgawatdenganketidakstabilankewangandaripelaburanpasaranyangsecaratradisinyaadalahkukuh,kuasaekonomiASEANpulatampakkianbersemangatberikutanperkembanganekonominegaraChinadanIndia.

DiMalaysia,ekonominegaraberkembangpadakadarsederhana,iaitusebanyak4.5peratus,dijanaolehpelaburandalamsektorawamdaninisiatifkerajaandalammembangunkanekonomiberpendapatantinggi,

DiThailand,permintaandomestikkianbertambahsertapenggunaandanpelaburankekalkukuh.Situasiinidiperkukuhkanolehtahappendapatanhasilladangyangtinggi,penggunaantenagakerjayangbanyak,dankepercayaanpihakkonsumersertakeyakinanperniagaanyangtinggitelahberjayadiperolehisepanjangtahunsehinggaOktober2011,iaituapabilanegaratersebutdilandabanjirteruk.

BagiKumpulanF&N,hasilyangluarbiasatinggiberjayadicatatkanpadatahuninidansayaberbesarhatimelaporkanbahawakamiberupayamengekalkanprestasicemerlang,malahmenikmatipertumbuhanduadigitdanmencatatkanrekodkeuntunganoperasiyangtinggibuat11tahunberturut-turut.

Hasildariperniagaanutamaminumanringandantenusumeningkatsebanyaklapanperatus,iaitukepadaRM3.9bilionberbandingtahunkewanganlepas,.Keuntunganoperasiturutmeningkatsebanyak14peratuskepadaRM444juta.KeuntunganselepascukaipulamelonjakkeRM369juta,iaitukenaikansebanyak20peratus.Hasilminumanringanmencatatkanpeningkatansebanyak16peratusberbandingtahunlepas,dankeseluruhanbahagiantenusupulamenginjaknaiksebanyakduaperatusdenganrekodpertumbuhandasaryangmeluasdariDairiesThailandyangmenyumbangkepadapeningkatansebanyak13peratus.PerniagaandiMalaysiapulamenurunekorandaripadakenaikanhargayangberlakuakibattanggungankosinputyanglebihtinggi.PendapatandarisektorhartanahmeningkatRM37jutasusulandaripadapenjualanBramptonHoldingsSdnBhddanhasiljualantanahkilangkacadiPetalingJaya.

meNGhaSIlkaN NIlaI uNtuk Para PemeGaNG Saham

Berdasarkankeputusanrekodsyarikat,pihakPengarahmencadangkandividenakhirsatuperingkatsebanyak47sensesahambersamadengandividenkhassatuperingkatsebanyak15sensesaham.SekiranyadiluluskanolehparapemegangsahamdiMesyuaratAgungTahunan,pembayarandividenbiasaberjumlah67sensesahamakandiberikan.Iaadalahpeningkatansebanyak23peratusberbandingdividenberjumlah54.5sensesahamyangdibayarpadatahunkewanganlepas.Bagidividenkhaspula,jumlahnyaadalahsebanyak30sensesaham,iaituhasildarikeseluruhanpenjualanprojekpembangunanTamanPerniagaanFraserdantanahkilangkaca.Sepertitahunlepas,dividenkhassebanyakRM1.10sesahamdibayarsusulanhasildaripadapenjualanperniagaanbekaskaca.JumlahbayarandividenyangtinggiinimencerminkankeyakinanpihakLembagadalamprestasimasadepanmantapdariKumpulansertamatlamatnyayangsetaradalammengoptimumkanstrukturmodalKumpulandansebagaiganjarankesetiaanyangdipamerkanolehparapemegangsaham.

PihakLembagaakanberusahauntukmengekalkanbayarandividenyangsamadalamtahun-tahunakandatang,sejajardenganprestasiKumpulanyangmantap.Setelahperniagaanmakanan&minuman(F&B)berjayamenjanaalirantunaioperasiyangkukuh,sayayakindanoptimisbahawaKumpulanakanterusberusahauntukmemanfaatkanpeluang-peluangpertumbuhanbarudan

010

menguruskanalirantunaidenganpenuhdisiplinuntukterusmemberikanpulangannilaiyanglebihtinggikepadaparapemegangsaham.

ParapemegangsahamKumpulanpastimenyedaribahawasahamKumpulantelahmeningkatsebanyakRM2.04,iaitudariRM14.46pada30September2010keRM16.50tahunini.

PelaburaN uNtuk maSa haDaPaN

PembinaankilangtenusudiPulauIndahyangbernilaiRM350jutatelahbermulasejakNovemberdanjangkaanuntukmemulakanpengeluarankomersilpadaseparuhtahunkedua2012adalahmengikutjadual.KilangPulauIndahmemperlihatkankejayaankilangRojanadaniaturutmenyerlahkanpenggunaanpelbagaiteknologihijauyanginovatifyangmendorongkepadapenjimatanpemuliharaanair,tenagadanalamsemulajadiyangketara.Bersama-samadenganoperasikilangRojana,kilangPulauIndahyangsiapkelakakanmeletakkanF&Ndiantaraparapengeluarsusudalamtinyangterbesardidunia.

Tahunkewanganyangditutuppada30September2011turutmenandakantamatnyaperhubunganperniagaanyangbaikselama73tahunbersamaTheCoca-ColaCompany.Padamasahadapan,Kumpulanakanmenumpukansepenuhperhatiankepadausaha-usahaagresifuntukmenjanalebihbanyaklagijualanprodukutamayangsediaadadanmelancarkanproduk-produkbaruuntukdiedarkankepadaparapelanggandanpenggunasetia.AntarapersediaanyangtelahdibuatuntukmenghadapicabaraniniadalahdalambentukpelaburanyangdibuatbagibarisanpengeluaranPETmonoblok3-dalam-1danduabarisantetrapakdiShahAlam.PengeluarankilangdiKotaKinabalupulaakandiaktifkansemuladanjaluranPETakandipasanguntukmemenuhipermintaanpenggunadiMalaysiaTimur.

Susulandaripadaitu,jaringanpengedarandanpemasaranjugaturutdiperluaskansertapautanstrategikturutdimantapkanmelaluikerjasamadankemasukankepasarandanwilayahbaru.PemerolehanfrancaisRedBullpadatahunkewanganyanglepasmerupakansalahsatudaripadausahaperniagaanyangberjaya.

uruS taDbIr korPorat

PihakLembagaPengarahmasihmenetapkanukuranstandarddanpengawasanuntukmemastikankesinambungandanmomentumpadamasadepan.Sejajardenganitu,pihakLembagaPengarahturutmenghadirisesi-sesilatihanyangsentiasamemberipenekanankepadaurustadbiryangbaikdanamalan-amalanterbaik.Initermasukmemberikanmaklumat-maklumatterkinibagiisu-isurelevanyangmenglibatkanundang-undangpersaingan,tanggungjawabsosialkorporatdanrangkaiansosial.

PembentukanJawatankuasaEksekutifKumpulan(ExcoKumpulan)padatahunlepasmenampilkanpenglibatanaktifahli-ahlijawatankuasanyadalammenilaiprestasioperasiunit-unitperniagaan.Sepanjangtahunini,limamesyuaratExcoKumpulantelahdianjurkan,danpihakpengurusanmenyampaikanmaklumatterkinisertamemintanasihatberkenaanhal-halstrategidanpelaburan.

SelaindaripenilaianrasmiyangdijalankandalammemastikankeberkesananLembagadanJawatankuasaLembaga,penilaiansetaraLembagaturutdilaksanakan.

011

Kenyataan Pengerusi

Satukomponenpentingdalamprosespengurusankeseluruhanadalahpengurusanrisikodankawalandalaman.Dalammenanganihargabahanmentahyangberubah-ubahdanbahanpembungkusanyangkianmeningkat,pihakLembagatelahmelaksanakanrangkakerjaperolehanuntukmelindungidanmenanganirisikopembeliandidalamKumpulan.

taNGGuNGJawab korPorat

KumpulanF&Ncukuppekaakantanggungjawabnyaterhadapalamsemulajadidanmasyarakat,terutamanyadikawasan-kawasanoperasinya.Pertimbanganterhadapalamsemulajadiadalahsebahagianpentingdalamoperasikami,dankamitelahmemulakanpelbagaiusahapemuliharaanairdantenaga.Kumpulanjugaturutbermatlamatuntukmembinanilaikesinambunganjangkapanjangdanmemberikankesanpositifterhadapjenama-jenamanyabersama-samaparapenggunadanmasyarakat.

tINJauaN DaN ProSPek

PertumbuhanekonomidirantauinidijangkalembapberikutankrisiskewanganyangdihadapiEropah.SentimenperniagaanF&BturutdijangkaperlahansementarakosbahanmentahyangtidakstabildanhargakomoditiyangkianmeningkatakibatpemansuhansubsidikerajaandiMalaysiadijangkamemberikesankepadapendapatanboleh-gunadipasaran-pasaranutamaKumpulan.

Namunbegitu,kamisangatoptimisterhadapmasadepanperniagaankamidiMalaysiadanThailand.ApabilabermulanyaoperasioperasidikilangPulanIndahkelak,iaakandapatmembantuuntukmemenuhipermintaandomestikdanserantau.SementaradiThailandpula,usahaakanditumpukankepadakerja-kerjamembaikpulihapabilaairbanjirsurutkelak.

Bagiperniagaanminumanringan,pelbagaisumbertelahdisusunsemulauntukmenepatiperubahandalamlanskapsaingandanjugasebagaisatulangkahserta-mertamengurangkanvolum.

Kumpulanakanmeneruskanusahajualaninovatifdaninisiatifpemasaran,mengoptimumkanjaringanpengedarandankehadiranyangmantapsertamemastikankawalankossertapengurusanpengeluaran,operasidanbahanmentahadalahefektif.Kamiakanterusmelaburdalammodalinsan,teknologi,sistem-sistemdanautomasiuntukmenampungdanmemajukanprestasisemasadalamtahunkewanganbaru.

PeNGharGaaN

PihakLembagaPengarahmengucapkanselamattinggalkepadaEn.KohPohTiongyangbersaraselepasberkhidmatbersamaKumpulanF&Nselama26tahun.BeliaubertugassebagaiKetuaPengawaiEksekutifdiAsiaPacificBreweriesdankemudiannyasebagaiKetuaPegawaiEksekutifdiBahagianMakanan&MinumandiFraserandNeaveLimited.En.KohPohTiongtelahdilantiksebagaiahliLembagaFraser&NeaveHoldingsBhdpadaOktober2008.PihakLembagainginmerakamkansetinggi-tinggipenghargaankepadaEn.KohPohTiongdiatassumbangandanperkhidmatancemerlangbeliaukepadaKumpuanF&N.

01�

En.PascaldePetrinitelahmengambilalihpucukpimpinanEn.KohdiBahagianMakanan&MinumandiFraser&Neave,Limited.En.PascaldePetrinimembawabersamabeliaupengalamanpengurusanamdiperingkatNegaradanRantaudibeberapasyarikatantarabangsa,dimana11tahundaripadanyaadalahtertumpudiAsia.Kamimengalu-alukankedatanganbeliaudiKumpulanF&N.

TahundibawahtinjauaninimemperlihatkanpelbagaicabarandansayamerakamkanjutaanterimakasihkepadapihakLembagaPengarahdiatastunjukajardannasihatyangtelahdiberidalammembimbingpihakpengurusandenganbaikuntukmenempuhitahunini.Kumpulansememangnyamengiktirafkanpelbagaipihakyangberkepentingandalamsyarikatiniyangmenyumbangkepadakejayaanberterusan.Maka,sayamenyampaikanucapanterimakasihdanpenghargaanikhlaskepadaparapelanggandanrakan-rakansyarikatdiataskepercayaandankomitmenberpanjanganmereka;kepadaparakakitanganbaginilaiprofesionalisme,kesetiaandankegigihanmerekadalammemastikanperniagaansyarikatterusberkembangmaju;dantidaklupakepadaparapemegangsahamyangsentiasamemberikansokonganpadukepadasyarikat.

Yangbenar

teNGku SyarIF beNDahara PerlIS SyeD baDaruDINJamalullaIl IbNI almarhum tuaNku SyeD Putra JamalullaIl

Pengerusi30November2011

01�

主席报告

正当全球经济继续受到由传统优势市场崩溃而引发，日益动荡的金融市场威胁之际，在中国与印度经济蓬勃发展下受惠的东盟区域却经历经济成长。

在马来西亚，公共领域投资的增加，加上政府推动各项措施以打造高收入经济，促使经济平均成长达到4.5%。

在泰国，国内需求提高，消费与投资都在高农业收入、高就业率、蓬勃消费市场以及商业信心高企的推动下，全年持续走强，直到2011年10月水灾侵袭该国。

对花莎尼集团而言，今年又是另一个丰收年，我很高兴地向大家汇报，我们成功保持出色的表现，达到双位数成长，创下连续11年刷新营业利润的记录。

汽水和乳制品这两项核心业务的收入比上个财政年增加了8%，达到39亿令吉；营业利润也飙升14%至4亿4400万令吉；税后盈利则增长20%至3亿6900万令吉。汽水部的收入在过去一年来上升16%，乳制品部整体上则成长2%，其中泰国乳制品部出现全面成长，收入飙涨13%，不过马来西亚业务则因为物价上涨而必须吸纳更高的成本，因此出现萎缩。脱售Brampton控股有限公司以及出售八打灵再也玻璃厂土地的收入，让房地产部的收入增加至3700万令吉。

为股东提供价值

基于我们的表现再创新高，董事部建议派发每股47仙的单层股息，连同一项特别的15仙单层股息。若接下来的股东大会批准这项建议，今年所派发的普通股息总数将达到67仙，比上个财政年的54.5仙高出23%。特别股息的总数则是30仙，包括脱售Fraser Business Park发展计划和玻璃厂土地的所有收入。集团在去年脱售玻璃容器业务后，同样派发了1.10令吉的特别股息。高股息反映了董事部对集团未来的表现有信心，同时也符合集团的宗旨，即有效地使用集团的资本结构，以及奖励股东们的忠诚。

董事部将根据集团的表现，致力维持未来的股息派发。随着我们的食品与饮料业务带来强劲的流动资金，我相信并乐观地认为，集团将继续加倍努力，把握新的成长机会，谨慎地管理资金流动，为我们的股东带来更高的回酬。

股东可能会注意到，在上个财政年里，我们的股价上升了2.04令吉，从2010年9月30日的14.46令吉提高至今年的16.50令吉。

为未来投资

耗资3亿5000万令吉的英达岛乳制品厂房已经在11月开始兴建，并达到预期的进度，能在2012年下半年全面投入生产。英达岛的厂房模仿Rojana厂房所取得的成就，具有各种创新的绿色工艺，在用水、能源与环保方面都有显著的效益。一旦英达岛的厂房竣工，再加上Rojana厂房的运作，花莎尼将晋身全球其中一个最大的罐装牛奶制造商。

当我们的财政年在2011年9月30日结束时，我们与可口可乐公司长达73年的合作关系，也在友好的情况下结束。展望未来，集团的焦点是积极推动现有核心产品的销售额，并推出新产品来接触忠实顾客与消费者。为了做好准备面对挑战，我们已在沙亚南投资一个三合一的单座苯二甲二乙酯（PET）生产线，以及两个tetrapak包装生产线。亚庇厂房也已重新启动，并安装一个PET生产线以满足东马顾客的需求。

此外，我们也在深化与扩大分销与营销网络和管道，并通过合作和扩展至新市场与区域，来建立策略性联系。在上个财政年签署的红牛（Red Bull）特许经营权就是其中一项成功的决定。

公司治理

董事部继续设立基准和监督机制，以确保未来的永续发展与动力。此外，董事部已进行培训计划，焦点依旧是良好治理与最佳做法，同时跟进最新课题，包括竞争法令、企业社会责任及社交。

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去年成立的集团执行委员会（Group Exco），让委员会成员积极地参与检讨各个业务单位运作表现的工作。去年共召开了5次委员会会议，管理层在会议上汇报业务进展，并在策略与投资事务方面寻求意见。

除了正式的董事部与董事委员会工作效率评估，去年也纳入了董事之间的同侪评议（peer review）。

风险管理和内部管制是整体管理程序的其中一个重要部分，面对越来越波动的原料与包装材料价格，董事部设立了一个采购框架，以保护和管理集团的采购风险。

企业责任

花莎尼集团一直都了解我们对营业地区的环境与社区的责任。环保一直都是我们业务的一部分，我们已在业务运作里采纳许多节约用水与能源的措施。集团也致力于建立长期的永续价值，并利用其品牌为消费者与社区带来正面影响。

展望及前景

不明朗的欧洲经济预料将阻碍本区域的经济成长，原料价格波动预料将打击食品与饮料业的士气，同时马来西亚政府削减津贴的措施将提高原产品价格，预料将导致集团的关键市场的可支配收入受到影响。

无论如何，我们对马来西亚与泰国的业务保持谨慎的乐观，英达岛厂房的启动将有助于满足国内与区域需求。在泰国方面，我们将把重点放在洪水消退后的修复工作。

至于汽水业务，我们正在重组资源以面对不断变化的竞争格局以及生产量直接下调的情况。

集团将不断追求创新的销售和营销方式，并利用成熟的分销网络与市场地位，确保有效的成本控制，以及生产、运作和原料的管理。我们也将继续投资在人力资源、科技、系统和自动化方面，以便在新的财政年保持与提升我们目前的表现。

鸣谢

董事部向许宝忠热情告别，他为花莎尼集团做出26年的辉煌贡献后正式退休。他曾出任Asia Pacific Breweries首席执行员，之后成为花莎尼有限公司的食品与饮料部首席执行员。许宝忠在2008年10月受委为花莎尼控股有限公司的董事。董事部要在这里向许宝忠致谢，感激他对花莎尼集团的贡献与出色服务。

潘斯加（Pascal de Petrini）将接任成为花莎尼有限公司食品与饮料部的掌舵人。潘斯加曾在许多领先的跨国公司服务，其中11年的时间都在亚洲，拥有丰富的国家与区域管理经验。我们热烈欢迎他加入花莎尼集团。

过去一年充满挑战，我要感谢董事部的真知灼见，在这段期间给予管理层的指导。当然，我们的股东对集团的持续成功也是至关重要的。我也要向我们的顾客与合作伙伴献上由衷的感激，感谢他们继续信任我们，并致力与我们合作。此外，感谢职员的专业、忠诚与付出，让我们的业务能持续成长，最后也要谢谢股东们不间断的支持。

谨此致意

TENGKU SYARIF BENDAHARA PERLIS SYED BADARUDINJAMALULLAIL IBNI ALMARHUM TUANKU SYED PUTRA JAMALULLAIL

主席

2011年11月30日

015

Board OfDirectors

Y.BHG.TANSRIDATO’DRLINSEEYANMalaysian, age 72Independent and non-executive directorChairman of the Audit Committee Member of the Group Executive and Nominating Committees

TanSriDato’DrLinisanindependentstrategyandfinanceconsultant.QualifiedasMalaysia’sfirstCharteredStatistician,hegraduatedfromtheUniversityofMalayainSingaporeandHarvardUniversity(wherehereceived3degrees,includingaPhDineconomics).HeisProfessorofEconomics(Adjunct)UniversitiUtaraMalaysiaandProfessorofInternationalFinance&Business(Adjunct)UniversitiMalaysiaSabah,aswellasanEisenhowerFellow.HeisalsoaCharteredScientist,London.

Priorto1998,hewasChairman/PresidentandCEOofPacificBankandfor14yearspreviously,DeputyGovernorofBankNegaraMalaysia,havingbeenacentralbankerfor34years.DrLincontinuestoservethepublicinterest;somecurrentappointmentsinclude:memberofthePM’sEconomicActionCouncilWorkingGroupandamemberofkeySteeringCommitteesattheMinistryofHigherEducation’EconomicAdvisor,AssociatedChineseChambersofCommerceandIndustryofMalaysia;Member,AsianShadowFinancialRegulatoryCommittee;Governor,AsianInstituteofManagement,Manila;DirectorontheBoardofMonashUniversitySunwayCampusMalaysia;ChairmanEmeritus,HarvardGraduateSchoolAlumniCouncilatHarvardUniversity;andPresident,HarvardClubofMalaysia.TanSriadvisesandsitsontheboardsofanumberofpubliclylistedandprivatebusinessesinMalaysia,SingaporeandIndonesia,includingChairman,Cabot(Malaysia)SdnBhdandisDirectorofAncomBerhad,GentingBerhad,WahSeongCorporationBhd,JobstreetCorporationBhd,KrisAssetsHoldingsBhdandTopGloveCorporationBhd.

TanSriLinwasappointedtotheBoardon12March1996.Duringthefinancialyear,heattendedallthe7scheduledmeetingsoftheBoard.Hedoesnothaveanyfamilyrelationshipwithanydirectorand/ormajorshareholderoftheCompany,noranypersonalinterestinanybusinessarrangementinvolvingtheCompany.

Y.A.M.TENGKUSYARIFBENDAHARAPERLISSYEDBADARUDINJAMALULLAILIBNIALMARHUMTUANKUSYEDPUTRAJAMALULLAILMalaysian, age 66Chairman of the Board, Independent and non-executive director Chairman of the Group Executive, Nominating, Remuneration and Share Buy Back CommitteesMember of the Audit Committee

TengkuSyedBadarudinJamalullailgraduatedfromCambridgeUniversityin1968withaMasterofArtsdegreeinLaw&History.From1968to1978,hewasemployedandheldvariousexecutivepositionsinFraser&Neave(Malaya)SdnBhd.CurrentlyTengkuisinvolvedinhisfamilybusinessandheisaDirectorofHwang-DBS(Malaysia)Berhad/Hwang-DBSInvestmentBankBerhad/HwangDBSInvestmentManagementBerhad.TengkuSyedisalsoaboardmemberofYayasanTuankuSyedPutra,acharitablefoundationandthePresidentofTuankuSyedPutraDialysisCentre,Perlis.

TengkuSyedwasappointedtotheBoardon24February1987andon27February2001wasappointeditsChairman.Duringthefinancialyear,heattendedallthe7scheduledmeetingsoftheBoard.Hedoesnothaveanyfamilyrelationshipwithanydirectorand/ormajorshareholderoftheCompany,noranypersonalinterestinanybusinessarrangementinvolvingtheCompany.

016

MRANTHONYCHEONGFOOKSENGMalaysian, age 57 Non-independent and non-executive directorMember of the Group Executive and Audit Committees

MrAnthonyCheongisamemberoftheInstituteofCharteredAccountantsinEngland&WalesandtheInstituteofCertifiedPublicAccountantsinSingapore.

HehasworkedintheAudit&CorporateAdvisoryServicesDivisionofErnst&Youngtill1989whenhejoinedCarnaudMetalboxAsiaLtdasInternalAuditManager,lateronassumingthepositionofCompanySecretary.HejoinedtheF&NGroupinTimesPublishingLtdasCorporateGeneralManager(GroupFinance)andCompanySecretaryin2001.HewasappointedtheGroupCompanySecretaryoftheFraserandNeave,LimitedGroupon1October2002andwasadirectorfrom1February2005to31January2008.HerepresentstheF&NGroupontheboardsofanumberoflistedandunlistedsubsidiaries.

MrAnthonyCheongwasappointedtotheBoardon1October2002.Duringthefinancialyear,heattendedallthe7scheduledmeetingsoftheBoard.ExceptforhispositionastheGroupCompanySecretaryofFraserandNeave,Limited,amajorshareholderoftheCompany,hedoesnothaveanyfamilyrelationshipwithanydirectorand/ormajorshareholderoftheCompany,noranypersonalinterestinanybusinessarrangementinvolvingtheCompany.

MRPASCALDEPETRINIFrench, age 51Non-independent and non-executive directorMember of the Group Executive, Nominating, Remuneration and Share Buy Back Committees

MrPascalDePetrinigraduatedwithaMaster’sdegreefromMinesDeNancy,France,in1981andaMasterofScienceinManagement,ESSEC,France,in1983.

MrDePetrinihasvastexperienceinCountryandRegionalGeneralManagementinleadingMNC.HejoinedtheDanoneGroupin1984andhasworkedinvariouscapacitiesfromProjectManager-DanoneFrancetoSupplyChainDirectorLU(Paris).In1998,hebecamethefirstnon-AsiantoheadDanoneBiscuitsChina(Shanghai)asGeneralManageruntil2002whereheassumedanotherpositionasGeneralManager-ThemisERPProjectfor2years.HemovedontobetheGeneralManagerofDanoneAqua(Jakarta)from2004-2007.HislastpositionwithDanonewasastheVicePresidentofDanoneBabyNutritionAsiaPacific(Singapore)from2007-2011.

MrDePetriniiscurrentlytheChiefExecutiveOfficer,Food&BeverageofFraserandNeave,Limited.HeoverseestheperformanceandgrowthofalloftheGroup’sbeerandnon-beerfoodandbeveragebusinesses.

MrDePetriniwasappointedtotheBoardon10October2011.Hedoesnothaveanyfamilyrelationshipwithanydirectorand/ormajorshareholderoftheCompany,noranypersonalinterestinanybusinessarrangementinvolvingtheCompanyexceptinhiscapacityastheChiefExecutiveOfficer,Food&BeverageofFraserandNeave,Limited,amajorshareholderoftheCompany.

017

Board OfDirectors

Y.BHG.DATO’ANWARRUDINBINAHAMADOSMANMalaysian, age 68Independent and non-executive directorMember of the Group Executive and Audit Committees

Dato’AnwarrudinAhamadOsmangraduatedfromtheUniversityofMalayain1966withaBachelorofArtsdegree.

Upongraduation,hejoinedtheMalaysianCivilServicein1966andservedintheMinistryofDefence.InMay1975,hejoinedPetronasandservedinvariouscapacitiesuntilhisretirementon1September1998asMD/CEOofPetronasDaganganBerhad.

Duringthe23yearsinPetronas,Dato’Anwarrudinheldvariousseniorpositions.HewastheGeneralManagerofCorporatePlanningDivisionin1984,GeneralManager,HumanResourcesManagementDivisionin1985beforeheadingtheInternationalMarketingDivisionofPetronasresponsibleforsalesofcrudeandproductsandprocessingofcrude.HewasamemberoftheAseanCouncilOnPetroleum(ASCOPE)technicalcommitteeforseveralyearsandspokeattheASCOPEoilmarketingmanagementseminarsandlocalseminarsonprospectsofbumiputerainthemarketinganddistributionindustry;representedMalaysiaintheOPEC/NON-OPECdialoguesfrom1989-1991.

Currently,Dato’AnwarrudinholdsdirectorshippositionsinKKBEngineeringBhdandinseveralnon-listedcompanies.HeisalsoExecutiveVice-ChairmanofYasminEngineering(M)SdnBhd.

Dato’AnwarrudinwasappointedtotheBoardon20January2005.Duringthefinancialyear,heattended6outofthe7scheduledmeetingsoftheBoard.Hedoesnothaveanyfamilyrelationshipwithanydirectorand/ormajorshareholderoftheCompany,noranypersonalinterestinanybusinessarrangementinvolvingtheCompany.

MRHUANGHONGPENGSingaporean, age 52Non-independent and non-executive directorMember of the Group Executive Committee

MrHuangHongPengiscurrentlytheDeputyChiefExecutiveOfficer(Food&Beverage)ofFraserandNeaveGroup(“F&NGroup”).HesitsontheboardsofF&NGroupsubsidiariesandassociates.

BeforehistransfertotheF&NGroupon1October2008,hewastheRegionalDirector,China/CEO’sOfficeofAsiaPacificBreweriesLimited(“APB”),asubsidiaryofFraserandNeave,LimitedandwasresponsibleforbreweryoperationsoftheAPBGroupinthePeople’sRepublicofChina(“PRC”)nowconsolidatedunderHeineken-APB(China)PteLtd.HejoinedtheAPBGroupinNovember1994andhasservedinvariouspositionsinMyanmarandthePRC.HealsositsontheboardsofAPBGroupsubsidiariesandassociates.

BeforejoiningtheAPBGroup,MrHuangwasAssistantDirector,AirportManagementintheCivilAviationAuthorityofSingaporeandhasadegreeinAirTransportfromtheEcoleNationaledeI’AviationCivile,Toulouse,France.

MrHuangwasappointedtotheBoardon1March2009.Duringthefinancialyear,heattendedallthe7scheduledmeetingsoftheBoard.Hedoesnothaveanyfamilyrelationshipwithanydirectorand/ormajorshareholderoftheCompany,noranypersonalinterestinanybusinessarrangementinvolvingtheCompanyexceptthatheisanomineedirectorofFraserandNeave,Limited,amajorshareholderoftheCompany.

01�

MRLEEKONGYIPMalaysian, age 67Non-independent and non-executive directorMember of the Group Executive, Remuneration and Share Buy Back Committees

MrLeeKongYipgraduatedfromtheUniversityofMalayawithaBachelorinEconomics(Hons)majoringinstatisticsin1969.HecompletedtheExecutiveProgramintheGraduateSchoolofBusinessAdministrationintheUniversityofCaliforniaBerkeley,USAin1988.

From1969to1994,hehasheldvariousexecutivepositionsintheOversea-ChineseBankingCorporationLimitedanditsfinancesubsidiary,theOversea-ChineseFinanceCompanyBerhad.In1995,hewasappointedtheExecutiveVicePresidentanddirectoroftheOCBCBank(Malaysia)Berhad,aposthehelduntilhisretirementinApril2000.HeisadirectorofOverseasAssuranceCorporation(Malaysia)Berhad,OverseasAssuranceCorporation(Holdings)Berhad,GreatEasternLifeAssurance(Malaysia)Berhad,GreatEasternCapital(Malaysia)SdnBhdandTheGreatEasternGeneralInsuranceCompanySdnBhd.

MrLeewasappointedtotheBoardon10May2000.Duringthefinancialyear,heattendedallthe7scheduledmeetingsoftheBoard.Hedoesnothaveanyfamilyrelationshipwithanydirectorand/ormajorshareholderoftheCompany,noranypersonalinterestinanybusinessarrangementinvolvingtheCompanyexceptthatheisanomineedirectorofFraserandNeave,Limited,amajorshareholderoftheCompany.

MRLESLIEOSWINSTRUYSSingaporean, age 74 Senior Independent and non-executive directorMember of the Audit, Nominating, Remuneration and Share Buy Back Committees

MrLeslieOswinStruysgraduatedfromtheUniversityofMalayain1960withaBachelorofArtsdegreeinEconomics.

HejoinedFraserandNeaveLimitedin1960andinhiscareerworkedinnumerouscapacitiesinsales,marketingandproduction.HewasbasedinvariouslocationsincludingKLandIpohandwasthefirstBranchManagerofthenewF&NbottlingplantinJohorwhichwasbuiltin1967.HislastpositionwasProductManagerinthesoftdrinksoperationsinMalaysiaandSingaporein1972.HewasthentransferredtoMalayaGlassBerhad(whichlaterbecameFraser&NeaveHoldingsBhd.)asitsGeneralManagerandheldthatpositionuntilhisretirementinDecember1997.

HewasalsoadirectorofMalayaGlassBerhadfrom1985andlaterofFraser&NeaveHoldingsBhd.untilDecember1997.HeisalsoadirectorofLeedenLtdbasedinSingapore.

MrStruyswasre-appointedtotheBoardon24May2001.Duringthefinancialyear,heattendedallthe7scheduledmeetingsoftheBoard.Hedoesnothaveanyfamilyrelationshipwithanydirectorand/ormajorshareholderoftheCompany,noranypersonalinterestinanybusinessarrangementinvolvingtheCompany.

01�

Board OfDirectors

Y.BHG.DATO’DRMOHDSHAHARBINSIDEKMalaysian, age 64 Non-independent and non-executive director

Dato’DrMohdShaharbinSidekgraduatedfromtheUniversityofMalayawithaBachelorofEconomics(Accounting)Honsin1971.Upongraduation,hejoinedtheFederalTreasuryofMalaysiaasAssistantSecretary.In1980,hewastransferredtoINTANasalecturerwherehecompletedhisMastersinEconomics(PublicAdministration)attheUniversityofMalayainthesameyear.HepursuedhisPhDinPublicFinanceattheTempleUniversity,USAandcompleteditin1989.

UponcompletionofhisdoctorateinFinance,Dato’DrMohdShaharjoinedthePenangStateasitsStateFinancialOfficerin1991andheldthepositionuntil1994.HewaspromotedastheDirectorGeneralofBiroTataNegarain1994.In1997,hewaspostedtotheFederalTreasuryofMalaysiaasSecretaryforSupplyandProcurementDivisionandwastransferredtoMAMPUasDeputyDirectorGeneralin1999.HewaspromotedasDirectorGeneraloftheRoadTransportDepartmentintheMinistryofTransportin2000untilhisretirementinApril2003.

Dato’DrMohdShaharwasappointedtotheBoardon30September2003.Duringthefinancialyear,heattendedallthe7scheduledmeetingsoftheBoard.Hedoesnothaveanyfamilyrelationshipwithanydirectorand/ormajorshareholderoftheCompany,noranypersonalinterestinanybusinessarrangementinvolvingtheCompanyexceptthatheisanomineedirectorofPermodalanNasionalBerhad,amajorshareholderoftheCompany.

Y.BHG.DATO’DRNIKNORzRULTHANIBINNIKHASSANTHANIMalaysian, age 51Non-independent and non-executive director

Dato’DrNikNorzrulThaniholdsaPh.D.inLawfromtheSchoolofOrientalandAfricanStudies(SOAS),UniversityofLondonandaMastersinLawfromQueenMaryCollege,UniversityofLondon.HereadlawattheUniversityofBuckingham,UnitedKingdom.

Dato’DrNikalsoholdsaPost-GraduateDiplomainSyariahLawandPractice(withDistinction)fromtheInternationalIslamicUniversityofMalaysia.HeisaBarristerofLincoln’sInnandanAdvocate&SolicitoroftheHighCourtofMalaya.HewascalledtotheBarofEnglandandWalesin1985andtotheMalaysianBarin1986.HewasaVisitingFulbrightScholar,HarvardLawSchoolin1996to1997,andwasformerlytheActingDean/DeputyDeanoftheFacultyofLaws,InternationalIslamicUniversityMalaysia.

Currently,Dato’DrNikNorzrulisapractisinglawyerwithzaidIbrahim&Co.PriortojoiningzaidIbrahim&Co.,Dato’DrNikwaswithBaker&McKenzie(InternationalLawyers),Singapore.

Dato’DrNikwasappointedtotheBoardon7November2006.Duringthefinancialyear,heattendedallthe7scheduledmeetingsoftheBoard.Hedoesnothaveanyfamilyrelationshipwithanydirectorand/ormajorshareholderoftheCompany,noranypersonalinterestinanybusinessarrangementinvolvingtheCompanyexceptthatheisanomineedirectorofPermodalanNasionalBerhad,amajorshareholderoftheCompany.

0�0

Note: NoneoftheabovedirectorshaveanydisclosableoffencesasrequiredundertheListingRequirementsofBursaMalaysiaSecuritiesBerhad.

0�1

ComPaNy SeCretarIeSMr Joseph Tan Eng Guan CA(M),MBA,(MIA8834)

Ms Gan Mee LingLLBHons(Malaya)(LS3160)

GrouP maNaGemeNtY.Bhg. Dato’ Ng Jui SiaB.A(Admin)&ICAEWChiefExecutiveOfficer

Mr Joseph Tan Eng GuanCA(M),MBAChiefFinancialOfficer

Mr Jeffrey Bok B.Sc(Hons.)Head,GroupHumanResource

Ms Gan Mee Ling LLBHons.(Malaya)GroupCompanySecretarialManager

Ms Tiah Oon SuB.Econs(Accounting),LLBMonashUniversityAustraliaHead,GroupLegal

Mr Ong Kok Choon MA(UK),FCMA(UK),CIA(USA)GroupInternalAuditManager

BOARDOFDIRECTORS

CorporateInformation

NON-EXECUTIVE DIRECTORSy.a.m. tengku Syarif bendahara Perlis Syed badarudin Jamalullail Ibni almarhum tuanku Syed Putra JamalullailChairman & Independent DirectorChairman of the Group Executive, Nominating,Remuneration and Share Buy Back CommitteesMember of the Audit Committee

y.bhg. tan Sri Dato’ Dr lin See yanIndependent DirectorChairman of the Audit CommitteeMember of the Group Executive andNominating Committees

mr anthony Cheong Fook SengMember of the Group Executive and Audit Committees

mr Pascal De PetriniMember of the Group Executive, Nominating, Remuneration and Share Buy Back Committees

mr huang hong PengMember of the Group Executive Committee

y.bhg. Dato’ anwarrudin bin ahamad osmanIndependent DirectorMember of the Group Executive and Audit Committees

mr lee kong yipMember of the Group Executive,Remuneration and Share Buy Back Committees

mr leslie oswin StruysSenior Independent DirectorMember of the Audit, Nominating, Remuneration and Share Buy Back Committees

y.bhg. Dato’ Dr mohd Shahar bin Sidek

y.bhg. Dato’ Dr Nik Norzrul thanibin Nik hassan thani

mr hui Choon kit Alternate Director to Pascal De Petrini

EXECUTIVE DIRECTOR y.bhg. Dato’ Ng Jui Sia

Mr Soh Swee Hock MBAManager,GroupCorporateServices

buSINeSS uNIt SeNIor maNaGemeNt

Soft Drinks:Mr Khalid Alvi (joined on 7 Dec 2011)B.Commerce&EconomicsandMBA-KarachiUniversityManagingDirector

Dairies:Mr Tony Lee Cheow FuiB.Com,CA(Aust.)ChiefOperatingOfficer

Mr Tan Hock BengMICPA,CA(M)GeneralManager,DairiesMalaysia

Mr Somsak ChayapongBSc(Chula),PED(IMDBusinessSchool,Lausanne)CountryHead-Thailand&Indochina

Property:Ir. Cheah Hong ChongBSc(Hons),M.Phil(Cantab),MBAMIEM,P.E.GeneralManager

reGIStereD aDDreSSLevel 8, F&N PointNo. 3 Jalan Metro Pudu 1Fraser Business Park,Off Jalan Yew55100 Kuala LumpurTel: 03-9235 2288 Fax: 03-9222 7878Email: cosec@fn.com.my

Share reGIStrarSaND traNSFer oFFICeTricor Investor Services Sdn BhdLevel 17, The Gardens North TowerMid Valley City, Lingkaran Syed Putra59200 Kuala LumpurTel: 03-2264 3883 Fax: 03-2282 1886

auDItorSErnst & Young, Kuala Lumpur

PrINCIPal baNkerSOCBC Bank (Malaysia) BerhadDeutsche Bank (Malaysia) BerhadCitibank Berhad

StoCk eXChaNGe lIStINGBursa Malaysia: Main Market CompanyName & Code: F&N and 3689Stock Sector: Consumer Products

CorporateStructure

SOFTDRINKS

100% F&NBeveragesManufacturingSdnBhd 100% BorneoSpringsSdnBhd100% F&NBeveragesMarketingSdnBhd 100% F&NBeverages(Thailand)Limited

100% F&NDairies(Malaysia)SdnBhd100% F&NFoodsSdnBhd100% PremierMilk(Malaya)SdnBhd100% ArolysSingaporePteLimited100% LionShareManagementLimited100% PMLDairiesSdnBhd

DAIRIESMALAYSIA

100% F&NDairies(Thailand)LimitedDAIRIESTHAILAND

PROPERTY

100% WimanisSdnBhd100% VacaronCompanySdnBhd100% ElsinburgHoldingsSdnBhd100% GreenclipperCorporationSdnBhd100% NuvakCompanySdnBhd100% UtasMutiaraSdnBhd100% F&NPropertiesSdnBhd100% TropicalLeagueSdnBhd100% KualaLumpurGlassManufacturersCompanySdnBhd70% LettriciaCorporationSdnBhd

100% Fraser&Neave(Malaya)SdnBhd100% FourEightsSdnBhd100% F&NCapitalSdnBhd

OTHERS

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Withaproventrackrecordofrapidgrowth,wearewellpreparedtoengagethechangesinworldmarketsheadon.

Well-rooted to meet tomorrow’s challenges

CeO’s Message 026

Soft Drinks 030

Dairies Malaysia 036

Dairies Thailand 042

Property 046

Business Review

Business Review

CEO’s Message

DelIverING SuStaINable Growth by INveStING For the FutureAswesignoffonour11thconsecutiveyearofsuccess,thelandscapeinwhichweoperateiscontinuouslyevolvingandchallenged.Themaintenanceofthehealthandsuccessofourenterprisedemandsthatweareabletospottheopportunitiesaheadofthecompetitionandexecutestrategiesthatbringtheseeffortstofruition.Onlythenwillwehaveasustainablebusinessmodel,sufficientlyrobusttoadapttothenewrealitiesofthemarketplace.

Fortunately,theF&NGroupisendowedwithDNAhonedfromourunrivalled128yearsofexperienceinthebeveragebusiness,andwemarchintoanewdawnwithconfidencetoimplementthenextlegofourtransformationaljourney.

Toconsolidateandenhanceourpremierpositioninthebusiness,wehavehadtoreevaluateourworkenvironmentandengineeraparadigmshiftinmindsetandbusinessprocessesthroughouttheorganisation.Thismultidisciplinaryandmultidimensionalapproachencompassesbrandbuilding,researchanddevelopment,andembracingnewtechnologysuchasmobileconsumertechnologyandsocialmediatoengagewithcustomersandconsumers.Initiativeswerealsolaid

toextractsynergieswithinthebusinessunitswhilecontinuingtoenhanceemployees’learningskills.Thesustainabilityofourhumantalentsisimperativetoourabilitytodevelopandenhanceourbrandequitywhilemeetingthechangingaspirationsanddiscerningtastesofcustomersforawiderrangeofwholesomeproductchoices.

Duringtheyearunderreview,thesoftdrinksdivisionestablishedanewbenchmark,creatinganall-timesalesrecordof69.8millioncaseswhilesustainingmarketleadership.ThevolumeofF&NproductsalonesoldintheperiodunderreviewsurpassedthetotalsoftdrinksvolumeachievedbythedivisionintheFY07/08.Revenuewasup16percenttoRM1.84billionfromRM1.59billionlastyearwhileoperatingprofitsurged41percenttoRM274millionfromRM194million.

Thecommendableperformancewasaresultofstronggrowthfromthecorebrandscomprising100PLUSandSEASONS,whileRedBullcontinuedtochargeaheadwithanimpressivevolumeincreaseof139percent.Newproducts,includingfournewSEASONSteavariantslaunchedinconvenient500mlPETbottles,alsoenhancedthesalesperformanceofourdifferentiatedproducts.

Soft Drinks Dairies Malaysia Dairies Thailand Property

GrouP reveNue2010 / 2011

47%

2%

26%

25%

GrouP oPeratING ProFIt2010 / 2011

62%14%

12%

12%

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100PLUSmarkeditsofficialdebutintonewterritoryinsouthernThailandandBrunei.Inaddition,theconclusionoftheCoca-Colafranchiseopeneddoorsforpotentialexplorationandexpansionintootheremergingmarketsoftheworld.

ThenumerouspriceincreasestooffsethighersugarcostsaswellasinflationarypressuresdampenedgrowthofDairiesMalaysia,whichregisteredalowervolumefortheyearunderreview.This,coupledwiththeproliferationoflower-pricedOEMbrands,affectedmarketcompetitiveness.RevenuedippedmarginallytoRM1.04billionwhileanoperatingprofitofRM53millionwasentered.Onanormalisedbasis,excludingPulauIndahrelocationcostsandPJbuildingaccelerateddepreciation,anoperatingprofitofRM60millionwasrecorded.

Progressofthenewstate-of-the-artPulauIndahplantisontrackandaseamlesstransitionwillbeundertakenfromthePetalingJayaplantinthefirsthalfofthenextfinancialyear.Whilethismovewillincreaseoperatingcostsintheshortterm,longtermbenefitsofincreasedproductivityareexpectedthereafter.ReplicatedfromtheblueprintoftheRojanaplant,thePulauIndahplantshowcasestheGroup’sinitiativestopromoteenvironmentalsustainability.Wehaveinvestedincutting-edgegreentechnologythatminimisesthecompany’scarbonfootprintviatheincorporationofwater,energy,solidwasteandenvironmentalconservationtechnology.

Onceoperationscommence,theGroupwillbeabletocrystalliseadeferredtaxassettotallingapproximatelyRM76millioninrelationtothehalalhubtaxincentive.Effortswillalsofocusonexpandingexportopportunitiesinfast-growingemerginghalalmarketsintheMiddleEastandAfrica,therebygainingvisiblepresenceoutsidetheregion.

Meanwhile,DairiesThailandachievedabroad-baseddomesticvolumegrowthofninepercentwhilemakinggreaterinroadsintoIndochina,andrecordinga40percentgrowthcoupledwiththeappointmentofalocaldistributorinVietnam.DuetobetterpricingofsterilisedmilkandSBC,revenuegrew13percenttoRM975millionwhileoperatingprofitwasRM54million,includingaprovisionofRM18millionforpotentialroyaltyunderpaymentofprioryears.Excludingtheprovision,thenormalisedoperatingprofitrose12percenttoRM72million.ThiswasduetohigheroperatingefficienciesinthenewRojanaplantanddistributioncentrefacilities,whichboostedprofitmargins.

ThedairiesplantatRojanahadtotemporarilyceaseoperationson11October2011duetothemassivefloodsaffectingThailand.Productionisexpectedtorecommenceapproximatelythreetofivemonthsafterfloodwatersrecede.Intheinterim,productsfromoutsourcedmanufacturinglocationswillbeshippedtomitigatedisruptionstothemarketplace.Thefloodsalsoaffectedtheworkforce,withathirdhavingsuffereddamagetotheirhomesandpersonalbelongings.Theaffectedstaffwasprovidedtemporaryhousingandcompanyloanswhileafloodrelieffundwassetuptoprovidefinancialassistance.

Onthepropertyfront,thesaleofthecollegebuildinginFraserBusinessParkIIanddisposaloftheGroup’swhollyownedsubsidiary,BramptonHoldingsSdnBhd,nettedaprofitofRM50million.ThesaleoftheoldglassfactorylandinPetalingJayacontributedanadditionalgainofRM10million.

On11November,theGroupenteredintoaconditionalsubscription-cum-shareholdersagreementwithFCLCentrepointPteLtd,asubsidiaryofFraserandNeaveLimited,tojointlyredevelopthe12.7acreDairiesMalaysia’splantsiteinPetalingJaya.Theproposedmixdevelopmentwithresidential,retail,officeandhospitalitypropertieswillbeundertakeninphasesandisexpectedtocontributepositivelytotheGroupinthefuture.

Business Review

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TheinvestmentinCocoalandHoldingsBhdhasenabledtheGrouptoexplorecrossproductmarketingsynergiesandcontractmanufacturingofhotfilledPETproducts.

the year aheaDAsexpected,thesoftdrinksdivisionwillseeanimmediatefallinsalesvolumeinthenewfinancialyearwiththeabsenceoftheCoca-Colabrandinitsproductportfolio.Inanticipationofthis,thedivisionhasoverthelastfewyearsfocusedondeepeningandwideningitsproductportfoliowhilebuildingbrandloyaltybystrengtheningits360-degreeapproachinestablishingmoretouchpointswithcustomersandconsumers.

WewillcontinuetorolloutproductsthatembraceF&N’scorevaluesof“PureEnjoyment,PureGoodness”andaddressthedynamicandevolvingneedsofconsumers’healthawarenessandchanginglifestyle.Besideshavingabroaderproductline,ourextensivedistributionnetworkandinfrastructurewillenableustotakeoncomplementaryproductsthatwillfurtherstrengthenourmarketposition.Theintroductionofnewproductshasbegunwiththeunveilingofanenhancedsodabrand,zesta,followedbyClearlyCitrusinthelemonlimesegment.Otherswillfollowinduecourse.TheadditionalmarketsofsouthernThailandandBruneiwillalsocontributetothedivision’soverallvolume.

ThecontinuationoftheselectivesugarsubsidybytheauthoritiesdoesnotaugurwellforDairiesMalaysiaaswehavetooperateinanenvironmentofintensepricecompetition.However,abrandrepositioningstrategywillbeimplementedtocreatevalueforconsumersanddifferentiateF&Nbrandsfromthecompetition.InThailand,thefivebillionbahtall-riskinsurancepolicywillmitigatebusinessinterruptionuntiltheplantisoperationallyreadywhilemanagementisactivelyexecutingrecoveryactionsinthemarketplacesofThailandandIndochina.

Tocreateasustainableoperatingenvironment,aconsultanthasbeenappointedtodevelopastrategicroadmapforF&Ntointegratesustainabilityaspartofthebusiness,developKPIs,enhancecommunicationandresponsivenesstostakeholderexpectationsaswellaspromoteintegrityandqualityofproducts.Thisprocessisexpectedtotakesixmonthsandwillinvolvetheengagementofvariousstakeholderssuchassuppliers,distributors,consumersandemployees.

Cognisantofthecurrentglobaleconomicandfinancialuncertainties,theGroup’soperationswillbesensitivetothevolatilityinglobalcommodityandfuelpricesandtheprospectsoffurthersubsidyreductionbytheGovernment.Notwithstandingthis,weareconfidentthattheGroup’ssustainedeffortandpastinvestmentstostrengthendistributionandbrandequity,broadenproductrangeandimproveoperatingefficiencywillalleviatethenegativeimpactinthelongerterm.Inthisrespect,theGroupwillforgeaheadwithitseffortstoextracteconomiesofscalefromitsoperationstomitigateandminimisetheimpactofthehigherinputcosts.

Yourssincerely

Dato’ Ng Jui SiaChiefExecutiveOfficer

30November2011

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1,843.0

10/11

1,589.1

09/10

revenue

274.0

10/11

194.2

09/10

operating Profit

799.2

10/11

715.5

09/10

assets employed

Business Review

Soft DrinksOVERVIEWTheSoftDrinksdivisioncontinuedtopoststrongdouble-digitgrowthinrevenueandprofitdespiterisingcosts,inparticularsugarandaluminumpriceswhichspikedsignificantlyoverlastyear.Profitgrowthoutpacedrevenuegrowthonhighervolume,favourableproductmixandimprovedoperationalefficiency.TherobustperformancewasmainlydrivenbyF&Nbrandedproductsespecially100PLUSandSEASONS.100PLUS,aleadingisotonicdrinkinMalaysia,recorded10percentvolumegrowth.SEASONS,theAsiandrinkandTeabrand,returnedastrong14percentvolumegrowthonnewflavoursandwell-executedmarketing.

ItwasamomentousoccasionforthedivisionasitssoftdrinksmanufacturingfacilityinShahAlamwasawardedtheISO14001certificationduringtheperiodunderreview.InKuching,F&NBeveragesManufacturingmanagedtoattainitstargetofonemillionaccident-freemanhoursduringthesametimeframe.ThedivisionalsoaccelerateditsexpansionplanswiththesettingupofaPET(polyethyleneterephthalate)plantinKotaKinabalu,EastMalaysia.

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