Dutch Lady Milk Industries Berhad (DLMI) Integrated Annual Report 2022

Introduction

• Purpose: Nourishing Our Planet and People in Every Stage of Life.
• Focused on providing nutritious dairy products to Malaysians of all ages.
• Committed to sustainable business practices and responsible resource management.

Content Overview

1. About DLMI Integrated Annual Report 2022 (Pages 6-15)

   • Value Creation at DLMI.
   • Overview of DLMI: Business, People, Corporate Information.
   • How DLMI defines capitals: Financial, Manufacturing, Social and Relationship, Natural, Human, and Intellectual.

2. 2022 Performance Highlights (Pages 26-27)

   • Continued providing healthy nutrition despite economic challenges.
   • Support for the national health agenda.
   • Commitment to sustainability initiatives.

3. Sustainability Statement (Pages 52-79)

   • Aligning sustainability focus with global standards (UN SDGs, GRI).
   • Addressing material issues: Nutrition, Innovation, Responsible Supply Chain, etc.
   • Implementation of sustainability governance.

4. Corporate Governance (Pages 148-187)

   • Overview of the governance structure, Board responsibilities, and Audit & Risk Committee.
   • Transparency and accountability in decision-making.

5. Financial Statements (Pages 82-135)

   • Financial position and performance for the year.
   • Revenue grew by 18% to RM1.3 billion.
   • Net profit was RM46.3 million, reflecting a decline due to exceptional gains in previous year.

Key Highlights

• Value Creation Business Model:

  • Focus on EES&G risks; integration into risk management framework.
  • Stakeholder engagement through regular surveys and feedback sessions.

• Environmental Impact:

  • 92.5% of packaging recyclable.
  • Zero waste to landfill and significant reductions in energy and water usage.

• Social Responsibility:

  • Programs to support local farmers and communities (e.g., School Milk Programme).
  • Commitment to employee welfare: psychological safety training, flexible working arrangements.

Board of Directors & Management Team Profiles

• Profiles of board members highlighting qualifications and experience.
• Commitment to diversity with a significant representation of women in leadership.

Corporate Governance Summary

• Continuous improvement in governance practices.
• Compliance with Malaysian Code on Corporate Governance.
• Annual review of board effectiveness and training programs for directors.

Financial Performance Summary

• Revenue: RM1.3 billion (18% growth).
• Net Profit: RM46.3 million (81% decline from previous year).
• Dividends: Total of RM32 million paid as interim dividends.

Conclusion

• DLMI maintains a robust commitment to sustainability, responsible governance, and community welfare.
• Preparing for growth and expansion with new production facilities planned for 2024, focusing on Industry 4.0 compliance.