REPORT
Notes to the Financial Statements | 151 |
Statement by Directors | 249 |
Statutory Declaration | 249 |
Independent Auditors' Report | 250 |
134 IOI Corporation Berhad | Annual Report 2024 |
Directors'
REPORT
The Directors of IOI Corporation Berhad have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the financial year ended 30 June 2024.
PRINCIPAL ACTIVITIES
The principal activity of the Company is that of an investment holding company.
The principal activities of the subsidiaries, associates and joint ventures are primarily involved in investment holding; oil palm cultivation and processing; commodities trading and refinery; manufacture and sales of fatty acids, soap noodles, glycerine and other oleochemical related products; manufacture and sale of plasticizer products, margarine, shortening and fat spreads; processing of oil palm trunks and other bio- matter derived from plantations to produce materials used in furniture, construction and building industries; processing of crude coconut oil; production and supply of palm-based renewable energy; as well as provision of management services and other related business activities. The principal activities and the details of the subsidiaries, associates and joint ventures are set out in Note 40 to the financial statements.
There have been no significant changes in the nature of the activities of the Group and of the Company during the financial year.
FINANCIAL RESULTS | ||
The audited financial results of the Group and of the Company for the financial year are as follows: | ||
In RM million | Group | Company |
Profit before tax | 1,398.5 | 816.3 |
Tax expense | (282.2) | (11.5) |
Profit for the financial year | 1,116.3 | 804.8 |
Attributable to: | ||
Owners of the parent | 1,109.4 | 804.8 |
Non-controlling interests | 6.9 | - |
1,116.3 | 804.8 | |
DIVIDENDS | ||
Dividends declared and paid since the end of the previous financial year were as follows: | ||
In RM million | Company | |
In respect of the financial year ended 30 June 2023 | ||
Second interim single tier dividend of 5.0 sen per ordinary share, paid on 22 September 2023 | 310.2 | |
In respect of the financial year ended 30 June 2024 | ||
First interim single tier dividend of 4.5 sen per ordinary share, paid on 21 March 2024 | 279.2 | |
589.4 |
On 26 August 2024, the Board of Directors declared a second interim single tier dividend of 5.0 sen per ordinary share, amounting to RM310.2 million in respect of the financial year ended 30 June 2024. The dividend is payable on 26 September 2024 to shareholders whose names appear in the Record of Depositors and Register of Members of the Company at the close of business on 18 September 2024.
No final dividend has been recommended by the Board of Directors for the financial year ended 30 June 2024.
Group Overview | Key Messages | Strategic Value Creation | Strategic Progress | Performance Review | Governance | Financial Report | Additional Information | 135 |
ISSUE OF SHARES AND DEBENTURES
The Company did not issue any new shares or debentures during the financial year.
TREASURY SHARES
The shareholders of the Company, by an ordinary resolution passed at an extraordinary general meeting held on 18 November 1999, approved the Company's plan to repurchase up to 10% of the issued share capital of the Company ("Share Buy Back"). The authority granted by the shareholders was subsequently renewed during subsequent Annual General Meetings ("AGM") of the Company, including the last AGM held on 27 October 2023.
The Directors of the Company are committed to enhance the value of the Company to its shareholders and believe that the Share Buy Back can be applied in the best interests of the Company.
The Company did not repurchase any of its issued ordinary shares from the open market during the financial year.
The Company has the right to cancel, resell and/or distribute the treasury shares as dividends or transfer the treasury shares as purchase consideration at a later date. As treasury shares, the rights attached to voting, dividends and participation in other distribution are suspended. None of the treasury shares repurchased had been sold, cancelled or transferred during the financial year.
At the end of the financial year, the number of ordinary shares in issue after deducting treasury shares is 6,203,697,295 ordinary shares.
RESERVES AND PROVISIONS
There were no material transfers to or from reserves or provisions during the financial year.
DIRECTORS
The Directors of the Company who have held office during the financial year until the date of this report are as follows:
Tan Sri Peter Chin Fah Kui
Dato' Lee Yeow Chor
Lee Yeow Seng
Dr Nesadurai Kalanithi
Dato' Kong Sooi Lin
Lim Tuang Ooi (Appointed on 18 July 2023)
Datuk Zurinah binti Pawanteh (Appointed on 1 September 2023)
Tan Sri Dr Rahamat Bivi binti Yusoff (Retired on 27 October 2023)
Cheah Tek Kuang (Retired on 27 October 2023)
136 IOI Corporation Berhad | Annual Report 2024 | |
DIRECTORS'
REPORT
DIRECTORS' INTERESTS | |
The Directors holding office at | the end of the financial year and their beneficial interests in the ordinary shares and redeemable preference shares |
of the Company and of its related corporations during the financial | year as recorded in the Register of Directors' Shareholdings kept by the | |||
Company under Section 59 of the Companies Act 2016 in Malaysia are as follows: | ||||
As at | As at | |||
1 July 2023 | Acquired | Disposed | 30 June 2024 | |
The Company | ||||
Direct interest | ||||
No. of ordinary shares | ||||
Dato' Lee Yeow Chor | 9,818,800 | - | - | 9,818,800 |
Indirect interests | ||||
No. of ordinary shares | ||||
Tan Sri Peter Chin Fah Kui | 20,000 | - | - | 20,000 |
Dato' Lee Yeow Chor | 3,129,664,980 | 70,000 | - | 3,129,734,980 |
Lee Yeow Seng | 3,129,534,980 | - | - | 3,129,534,980 |
Ultimate Holding Company | ||||
Progressive Holdings Sdn Bhd | ||||
Direct interests | ||||
No. of ordinary shares | ||||
Dato' Lee Yeow Chor | 18,600,000 | - | - | 18,600,000 |
Lee Yeow Seng | 5,400,000 | - | - | 5,400,000 |
No. of redeemable preference shares | ||||
Dato' Lee Yeow Chor | 1,038,841,775 | - | (244,047,500) | 794,794,275 |
Lee Yeow Seng | 301,599,225 | - | (70,852,500) | 230,746,725 |
By virtue of Dato' Lee Yeow Chor's and Lee Yeow Seng's interests in the ordinary shares of the Company and of its ultimate holding company, they are also deemed to be interested in the shares of all the subsidiaries of the Company and of its ultimate holding company to the extent that the Company and its ultimate holding company have an interest.
The other Directors holding office at the end of the financial year namely, Dr Nesadurai Kalanithi, Dato' Kong Sooi Lin, Lim Tuang Ooi and Datuk Zurinah binti Pawanteh did not have any interest in the ordinary shares and redeemable preference shares of the Company and of its related corporations during the financial year.
DIRECTORS' BENEFITS
Since the end of the previous financial year, none of the Directors of the Company has received or become entitled to receive any benefit (other than those benefits included in the aggregate amount of remuneration received or due and receivable by the Directors as shown in the financial statements) by reason of a contract made by the Company or a related corporation with the Director, or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest except for any benefits, which may be deemed to have arisen by virtue of the significant related party transactions entered into in the ordinary course of business as disclosed in Note 36 to the financial statements.
During and at the end of the financial year, no arrangement subsisted to which the Company is a party, with the object or objects of enabling the Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.
Group Overview | Key Messages | Strategic Value Creation | Strategic Progress | Performance Review | Governance | Financial Report | Additional Information | 137 |
DIRECTORS' REMUNERATION | ||
Directors' remuneration of the Group and of the Company for the financial year ended 30 June 2024 were as follows: | ||
In RM million | Group | Company |
Fees | 1.4 | 1.4 |
Remuneration | 19.1 | 19.1 |
Total short term employee benefits | 20.5 | 20.5 |
Post-employment benefits | 2.1 | 2.1 |
22.6 | 22.6 |
INDEMNITY AND INSURANCE FOR DIRECTORS, OFFICERS AND AUDITORS
The Company maintains a corporate liability insurance for the | Directors and officers of the Group throughout the financial year, which provides |
appropriate insurance cover for the Directors and officers of the | Group. The amount of insurance premium paid by the Company for the financial |
year 2024 was RM127,000. |
There was no indemnity given to or insurance effected for the auditors of the Group and of the Company during the financial year.
STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS OF THE GROUP AND OF THE COMPANY Before the financial statements of the Group and of the Company were prepared, the Directors took reasonable steps:
i. to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts, and had satisfied themselves that all known bad debts had been written off and that adequate provision had been made for doubtful debts; and
- to ensure that any current assets, other than debts, which were unlikely to realise their book values in the ordinary course of business of the Group and of the Company have been written down to an amount which they might be expected so to realise.
As at the date of this report, the Directors are not aware of any circumstances:
- which would render the amount written off for bad debts or the amount of provision for doubtful debts in the financial statements of the Group and of the Company inadequate to any substantial extent;
ii. | which would render the values attributed to current assets in the financial statements of the Group and of the Company misleading; and |
- which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.
As at the date of this report, there does not exist:
- any charge on the assets of the Group or of the Company that has arisen since the end of the financial year which secures the liabilities of any other person; and
- any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year.
No contingent or other liability has become enforceable, or is likely to become enforceable within the period of twelve (12) months after the end of the financial year, which in the opinion of the Directors, will or may substantially affect the ability of the Group or of the Company to meet their obligations as and when they fall due.
138 IOI Corporation Berhad | Annual Report 2024 | |
DIRECTORS'
REPORT
OTHER STATUTORY INFORMATION
As at the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Group and of the Company that would render any amount stated in the financial statements misleading.
In the opinion of the Directors:
- the results of operations of the Group and of the Company for the financial year were not substantially affected by any item, transaction or event of a material and unusual nature; and
- no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of operations of the Group and of the Company for the financial year in which this report is made.
LIST OF DIRECTORS OF SUBSIDIARIES
Pursuant to Section 253 of the Companies Act 2016 in Malaysia, the Directors of the subsidiaries during the financial year until the date of this report are as follows:
Dato' Lee Yeow Chor
Lee Yeow Seng
Amir Mohd Hafiz bin Amir Khalid
Datuk Abdul Ghani bin Mohamed Yassin
Datu Monaliza binti Zaidel ^
Datu Sr. Zaidi bin Mahdi *
Dr Klaus Kasimir Wilgenbus
Hans Peter Fitch
Joseph N Emuang JR
Kong Kian Beng
Koo Ping Wui
Law Kim Soon
Lee Nyuk Choon @ Jamilah Ariffin
Lee Suat Kwan #
Lee Yoke Hean
Lim Jit Uei (Lin Riwei)
Low Pei Chen
Mark Tuchen *
Poppe Engbert Braam *
René Fresen */^
Risman
Sebastian Anak Baya
Subramaniam Arumugam
Sudhakaran a/l Nottath Bhaskaran
Shyam a/l M K Lakshmanan
Group Overview | Key Messages | Strategic Value Creation | Strategic Progress | Performance Review | Governance | Financial Report | Additional Information | 139 |
LIST OF DIRECTORS OF SUBSIDIARIES (Continued)
Pursuant to Section 253 of the Companies Act 2016 in Malaysia, the Directors of the subsidiaries during the financial year until the date of this report are as follows (Continued):
Syaheddrul Rahman bin Joddari *
Tan Kean Hua
Tan Sri Dato' Sri Koh Kin Lip
Teah Chin Guan @ Teh Chin Guan
Teddy Firman bin Simanjuntak ^
Teunis Eigenraam
Thomas Kummer @
Wong Yin Ling
- Resigned during the financial year.
- Appointed during the financial year.
- Ceased office due to dissolution of company.
- Appointed after the financial year.
ULTIMATE HOLDING COMPANY
The ultimate holding company is Progressive Holdings Sdn Bhd, a company incorporated in Malaysia.
AUDIT AND RISK MANAGEMENT COMMITTEE ("ARMC")
The Directors who serve as members of the ARMC as at the date of this report are as follows:
Dato' Kong Sooi Lin (Chairman)
Lim Tuang Ooi (Appointed on 18 July 2023)
Dr Nesadurai Kalanithi (Appointed on 27 October 2023)
GOVERNANCE, NOMINATING AND REMUNERATION COMMITTEE ("GNRC")
The Directors who serve as members of the GNRC as at the date of this report are as follows:
Datuk Zurinah binti Pawanteh (Chairman) (Appointed on 27 October 2023)
Dr Nesadurai Kalanithi
Lim Tuang Ooi (Appointed on 27 October 2023)
BOARD SUSTAINABILITY COMMITTEE ("BSC")
The Directors who serve as members of the BSC as at the date of this report are as follows:
Dr Nesadurai Kalanithi (Chairman)
Dato' Kong Sooi Lin
Datuk Zurinah binti Pawanteh (Appointed on 1 September 2023)
140 IOI Corporation Berhad | Annual Report 2024 | |
DIRECTORS'
REPORT
AUDITORS
The auditors, BDO PLT [201906000013 (LLP0018825-LCA) & AF 0206], have expressed their willingness to continue in office.
AUDITORS' REMUNERATION
Auditors' remuneration of the Group and of the Company for the financial year ended 30 June 2024 were as follows:
In RM million | Group | Company |
Statutory audit | ||
- BDO PLT | 1.3 | 0.2 |
- Member firms of BDO International | 0.3 | - |
- Other auditors | 0.9 | - |
2.5 | 0.2 |
This report was approved and signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
Tan Sri Peter Chin Fah Kui
Non-IndependentNon-Executive Chairman
Dato' Lee Yeow Chor
Group Managing Director and Chief Executive
Putrajaya
11 September 2024
Group Overview | Key Messages | Strategic Value Creation | Strategic Progress | Performance Review | Governance | Financial Report | Additional Information | 141 |
Statements of
PROFIT OR LOSS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Group | Company | ||||
In RM million | Note | 2024 | 2023 | 2024 | 2023 |
Revenue | 5 | 9,603.6 | 11,583.8 | 868.2 | 966.4 |
Cost of sales | (7,576.9) | (9,321.7) | (3.5) | (4.8) | |
Gross profit | 2,026.7 | 2,262.1 | 864.7 | 961.6 | |
Other operating income | 6 | 218.4 | 1,003.4 | 61.1 | 362.5 |
Marketing and selling expenses | (235.3) | (243.4) | - | - | |
Administration expenses | (376.4) | (383.2) | (27.3) | (28.8) | |
Other operating expenses | 7 | (453.3) | (1,097.7) | (81.8) | (151.6) |
Operating profit | 1,180.1 | 1,541.2 | 816.7 | 1,143.7 | |
Share of results of associates, net of tax | 350.9 | 272.8 | - | - | |
Share of results of joint ventures, net of tax | 4.3 | 1.5 | - | - | |
Profit before interest and tax | 1,535.3 | 1,815.5 | 816.7 | 1,143.7 | |
Interest income | 8 | 42.2 | 34.4 | 133.5 | 141.4 |
Finance costs | 9 | (160.1) | (149.4) | (117.4) | (126.4) |
Net foreign currency translation loss on | |||||
foreign currency denominated borrowings | (18.9) | (193.5) | (16.6) | (93.3) | |
Net foreign currency translation gain on | |||||
foreign currency denominated deposits | - | 19.0 | 0.1 | 19.3 | |
Profit before tax | 10 | 1,398.5 | 1,526.0 | 816.3 | 1,084.7 |
Tax expense | 11 | (282.2) | (396.0) | (11.5) | (26.6) |
Profit for the financial year | 1,116.3 | 1,130.0 | 804.8 | 1,058.1 | |
Attributable to: | |||||
Owners of the parent | 1,109.4 | 1,114.2 | 804.8 | 1,058.1 | |
Non-controlling interests | 6.9 | 15.8 | - | - | |
1,116.3 | 1,130.0 | 804.8 | 1,058.1 | ||
Earnings per ordinary share attributable | |||||
to owners of the parent (sen) | 12 | ||||
Basic | 17.88 | 17.95 | |||
Diluted | 17.88 | 17.95 | |||
Dividend per ordinary share (sen) | 13 | ||||
First interim single tier dividend | 4.5 | 6.0 | 4.5 | 6.0 | |
Second interim single tier dividend | 5.0 | 5.0 | 5.0 | 5.0 | |
Total | 9.5 | 11.0 | 9.5 | 11.0 |
The notes on pages 151 to 248 form an integral part of the financial statements.
142 IOI Corporation Berhad | Annual Report 2024 |
Statements of
COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Group | Company | |||
In RM million | 2024 | 2023 | 2024 | 2023 |
Profit for the financial year | 1,116.3 | 1,130.0 | 804.8 | 1,058.1 |
Other comprehensive (loss)/income that will not be reclassified | ||||
subsequently to profit or loss | ||||
Share of other comprehensive (loss)/income of associates | (0.5) | 0.2 | - | - |
Re-measurements of the defined benefit obligations | (0.5) | 3.2 | - | - |
Tax effect relating to re-measurements of the defined benefit obligations | 0.3 | (1.0) | - | - |
(0.7) | 2.4 | - | - | |
Other comprehensive (loss)/income that will be reclassified | ||||
subsequently to profit or loss when specific conditions are met | ||||
Exchange differences on translation of foreign operations | (165.6) | 219.0 | - | - |
Other comprehensive loss reclassified subsequently to profit or loss | ||||
arising from partial disposal of 10% equity interest in an associate | - | (14.1) | - | - |
Share of other comprehensive loss of associates | (4.3) | (27.9) | - | - |
Hedge of interest rate risk on issuance of Guaranteed Notes due 2031 | ||||
Reclassified to profit or loss | (2.8) | (2.7) | - | - |
(172.7) | 174.3 | - | - | |
Other comprehensive (loss)/income for the financial year, net of tax | (173.4) | 176.7 | - | - |
Total comprehensive income for the financial year | 942.9 | 1,306.7 | 804.8 | 1,058.1 |
Total comprehensive income attributable to: | ||||
Owners of the parent | 937.2 | 1,290.9 | 804.8 | 1,058.1 |
Non-controlling interests | 5.7 | 15.8 | - | - |
942.9 | 1,306.7 | 804.8 | 1,058.1 |
Group Overview Key Messages Strategic Value Creation Strategic Progress Performance Review Governance Financial Report Additional Information 143
Statements of
FINANCIAL POSITION
AS AT 30 JUNE 2024
Group | Company | ||||
In RM million | Note | 2024 | 2023 | 2024 | 2023 |
ASSETS | |||||
Non-current assets | |||||
Property, plant and equipment | 14 | 9,229.1 | 8,995.2 | 83.2 | 82.6 |
Intangible assets | 15 | 411.8 | 414.8 | 0.7 | 0.7 |
Investments in subsidiaries | 16 | - | - | 6,735.5 | 6,705.7 |
Amounts due from subsidiaries | 16 | - | - | 1,391.4 | 1,202.1 |
Investments in associates | 17 | 3,103.3 | 3,013.3 | 683.2 | 683.2 |
Derivative assets | 18 | 49.8 | 107.3 | 38.3 | 46.3 |
Deferred tax assets | 19 | 15.9 | 18.6 | 13.4 | 10.0 |
Other non-current assets | 20 | 147.7 | 106.4 | 7.2 | 7.8 |
12,957.6 | 12,655.6 | 8,952.9 | 8,738.4 | ||
Current assets | |||||
Inventories | 21 | 1,221.2 | 1,113.9 | - | - |
Trade and other receivables | 22 | 1,283.4 | 1,307.1 | 34.8 | 33.4 |
Amounts due from subsidiaries | 16 | - | - | 892.4 | 1,151.3 |
Amounts due from associates | 23 | 52.3 | 34.3 | - | - |
Derivative assets | 18 | 41.6 | 50.6 | - | - |
Other investments | 24 | 73.1 | 67.4 | 1.2 | 1.1 |
Other current assets | 25 | 131.3 | 118.0 | 3.4 | 0.4 |
Short term funds | 26 | 1,164.8 | 1,158.0 | - | - |
Deposits with financial institutions | 27 | 267.3 | 53.5 | 142.5 | 51.4 |
Cash and bank balances | 749.6 | 1,023.5 | 39.5 | 65.0 | |
4,984.6 | 4,926.3 | 1,113.8 | 1,302.6 | ||
TOTAL ASSETS | 17,942.2 | 17,581.9 | 10,066.7 | 10,041.0 |
The notes on pages 151 to 248 form an integral part of the financial statements. | The notes on pages 151 to 248 form an integral part of the financial statements. |
144 IOI Corporation Berhad | Annual Report 2024 | |
STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2024
Group | Company | ||||
In RM million | Note | 2024 | 2023 | 2024 | 2023 |
EQUITY AND LIABILITIES | |||||
Equity attributable to owners of the parent | |||||
Share capital | 28 | 791.1 | 791.1 | 791.1 | 791.1 |
Treasury shares | 28 | (309.8) | (309.8) | (309.8) | (309.8) |
Reserves | 29 | 115.6 | 287.1 | - | - |
Retained earnings | 11,081.7 | 10,562.4 | 6,944.7 | 6,729.3 | |
11,678.6 | 11,330.8 | 7,426.0 | 7,210.6 | ||
Non-controlling interests | 331.1 | 339.8 | - | - | |
Total equity | 12,009.7 | 11,670.6 | 7,426.0 | 7,210.6 | |
LIABILITIES | |||||
Non-current liabilities | |||||
Borrowings | 30 | 2,996.0 | 2,895.7 | 967.9 | 818.7 |
Amounts due to subsidiaries | 16 | - | - | 986.0 | 1,008.9 |
Lease liabilities | 31 | 50.6 | 54.9 | - | - |
Deferred tax liabilities | 19 | 1,229.0 | 1,206.7 | - | - |
Other non-current liabilities | 32 | 76.1 | 78.5 | - | - |
4,351.7 | 4,235.8 | 1,953.9 | 1,827.6 | ||
Current liabilities | |||||
Borrowings | 30 | 708.7 | 861.5 | 498.1 | 680.8 |
Trade and other payables | 33 | 788.5 | 711.1 | 111.6 | 119.6 |
Amounts due to subsidiaries | 16 | - | - | 77.1 | 199.8 |
Derivative liabilities | 18 | 12.4 | 59.1 | - | - |
Lease liabilities | 31 | 9.4 | 8.2 | - | - |
Other current liabilities | 34 | 61.8 | 35.6 | - | 2.6 |
1,580.8 | 1,675.5 | 686.8 | 1,002.8 | ||
Total liabilities | 5,932.5 | 5,911.3 | 2,640.7 | 2,830.4 | |
TOTAL EQUITY AND LIABILITIES | 17,942.2 | 17,581.9 | 10,066.7 | 10,041.0 |
Group Overview | Key Messages | Strategic Value Creation | Strategic Progress | Performance Review | Governance | Financial Report | Additional Information | 145 |
Statements of
CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Non-distributable | Distributable | ||||||||||||
Foreign | Total | ||||||||||||
currency | attributable | Non- | |||||||||||
In RM million | Share | Treasury | Capital | translation | Hedging | Other | Retained | to owners of | controlling | Total | |||
capital | shares | reserves | reserve | reserve | reserves | earnings | the parent | interests | equity | ||||
Group | |||||||||||||
As at 1 July 2022 | 791.1 | (275.4) | 7.7 | 88.5 | 23.1 | (6.5) | 10,315.2 | 10,943.7 | 340.8 | 11,284.5 | |||
Profit for the financial year | |||||||||||||
- | - | - | - | - | - | 1,114.2 | 1,114.2 | 15.8 | 1,130.0 | ||||
Re-measurements of the | |||||||||||||
defined benefit obligations | - | - | - | - | - | - | 2.2 | 2.2 | - | 2.2 | |||
Exchange differences on | |||||||||||||
translation of foreign | |||||||||||||
operations | - | - | - | 219.0 | - | - | - | 219.0 | - | 219.0 | |||
Other comprehensive loss | |||||||||||||
reclassified subsequently to | |||||||||||||
profit or loss arising from | |||||||||||||
partial disposal of 10% | |||||||||||||
equity interest in | |||||||||||||
an associate | - | - | - | (14.1) | - | - | - | (14.1) | - | (14.1) | |||
Share of other comprehensive | |||||||||||||
(loss)/income of associates | - | - | - | (34.0) | - | 6.1 | 0.2 | (27.7) | - | (27.7) | |||
Hedge of interest rate risk on | |||||||||||||
issuance of Guaranteed | |||||||||||||
Notes due 2031 | - | - | - | - | (2.7) | - | - | (2.7) | - | (2.7) | |||
Total comprehensive | - | - | - | 170.9 | (2.7) | 6.1 | 1,116.6 | 1,290.9 | 15.8 | 1,306.7 | |||
income/(loss) | |||||||||||||
Transactions with owners | |||||||||||||
Dividend paid in respect of | |||||||||||||
current financial year | |||||||||||||
(Note 13) | - | - | - | - | - | - | (372.4) | (372.4) | - | (372.4) | |||
Dividend paid in respect of | |||||||||||||
previous financial year | |||||||||||||
(Note 13) | - | - | - | - | - | - | (497.0) | (497.0) | - | (497.0) | |||
Repurchase of shares | |||||||||||||
(Note 28.2) | - | (34.4) | - | - | - | - | - | (34.4) | - | (34.4) | |||
Change in equity interest | |||||||||||||
in a subsidiary | - | - | - | - | - | - | - | - | (2.7) | (2.7) | |||
Issuance of ordinary shares to | |||||||||||||
non-controlling interest | |||||||||||||
in a subsidiary (Note 40) | - | - | - | - | - | - | - | - | 0.3 | 0.3 | |||
Dividends paid to | |||||||||||||
non-controlling interests | - | - | - | - | - | - | - | - | (14.4) | (14.4) | |||
As at 30 June 2023 | 791.1 | (309.8) | 7.7 | 259.4 | 20.4 | (0.4) | 10,562.4 | 11,330.8 | 339.8 | 11,670.6 |
The notes on pages 151 to 248 form an integral part of the financial statements. | The notes on pages 151 to 248 form an integral part of the financial statements. |
146 IOI Corporation Berhad | Annual Report 2024 | |
STATEMENTS OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Non-distributable | Distributable | ||||||||||
Foreign | Total | ||||||||||
currency | attributable | Non- | |||||||||
In RM million | Share | Treasury | Capital | translation | Hedging | Other | Retained | to owners of | controlling | Total | |
capital | shares | reserves | reserve | reserve | reserves | earnings | the parent | interests | equity | ||
Group | |||||||||||
As at 1 July 2023 | 791.1 | (309.8) | 7.7 | 259.4 | 20.4 | (0.4) | 10,562.4 | 11,330.8 | 339.8 | 11,670.6 | |
Profit for the financial year | |||||||||||
- | - | - | - | - | - | 1,109.4 | 1,109.4 | 6.9 | 1,116.3 | ||
Re-measurements of the | |||||||||||
defined benefit obligations | - | - | - | - | - | - | (0.2) | (0.2) | - | (0.2) | |
Exchange differences on | |||||||||||
translation of foreign | |||||||||||
operations | - | - | - | (164.4) | - | - | - | (164.4) | (1.2) | (165.6) | |
Share of other comprehensive | |||||||||||
income/(loss) of associates | - | - | - | 0.6 | - | (4.9) | (0.5) | (4.8) | - | (4.8) | |
Hedge of interest rate risk on | |||||||||||
issuance of Guaranteed | |||||||||||
Notes due 2031 | - | - | - | - | (2.8) | - | - | (2.8) | - | (2.8) | |
Total comprehensive | |||||||||||
(loss)/income | - | - | - | (163.8) | (2.8) | (4.9) | 1,108.7 | 937.2 | 5.7 | 942.9 | |
Transactions with owners | |||||||||||
Dividend paid in respect of | |||||||||||
current financial year | |||||||||||
(Note 13) | - | - | - | - | - | - | (279.2) | (279.2) | - | (279.2) | |
Dividend paid in respect of | |||||||||||
previous financial year | |||||||||||
(Note 13) | - | - | - | - | - | - | (310.2) | (310.2) | - | (310.2) | |
Issuance of ordinary shares to | |||||||||||
non-controlling interest | |||||||||||
in a subsidiary (Note 40) | - | - | - | - | - | - | - | - | 0.3 | 0.3 | |
Dividends paid to | |||||||||||
non-controlling interests | - | - | - | - | - | - | - | - | (14.7) | (14.7) | |
As at 30 June 2024 | 791.1 | (309.8) | 7.7 | 95.6 | 17.6 | (5.3) | 11,081.7 | 11,678.6 | 331.1 | 12,009.7 | |
Group Overview | Key Messages | Strategic Value Creation | Strategic Progress | Performance Review | Governance | Financial Report | Additional Information | 147 |
Distributable | ||||
Share | Treasury | Retained | Total | |
In RM million | capital | shares | earnings | equity |
Company | ||||
As at 1 July 2022 | 791.1 | (275.4) | 6,540.6 | 7,056.3 |
Profit for the financial year | ||||
- | - | 1,058.1 | 1,058.1 | |
Total comprehensive income | - | - | 1,058.1 | 1,058.1 |
Transactions with owners | ||||
Dividend paid in respect of current financial year (Note 13) | - | - | (372.4) | (372.4) |
Dividend paid in respect of previous financial year (Note 13) | - | - | (497.0) | (497.0) |
Repurchase of shares (Note 28.2) | - | (34.4) | - | (34.4) |
As at 30 June 2023 | 791.1 | (309.8) | 6,729.3 | 7,210.6 |
As at 1 July 2023 | 791.1 | (309.8) | 6,729.3 | 7,210.6 |
Profit for the financial year | ||||
- | - | 804.8 | 804.8 | |
Total comprehensive income | - | - | 804.8 | 804.8 |
Transactions with owners | ||||
Dividend paid in respect of current financial year (Note 13) | - | - | (279.2) | (279.2) |
Dividend paid in respect of previous financial year (Note 13) | - | - | (310.2) | (310.2) |
As at 30 June 2024 | 791.1 | (309.8) | 6,944.7 | 7,426.0 |
The notes on pages 151 to 248 form an integral part of the financial statements. | The notes on pages 151 to 248 form an integral part of the financial statements. |
148 IOI Corporation Berhad | Annual Report 2024 |
Statements of
CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Group | Company | ||||
In RM million | Note | 2024 | 2023 | 2024 | 2023 |
Cash Flows From Operating Activities | |||||
Profit before tax | 1,398.5 | 1,526.0 | 816.3 | 1,084.7 | |
Adjustments for: | |||||
Depreciation of property, plant and equipment | 14 | 388.4 | 367.0 | 0.8 | 1.2 |
Amortisation of intangible assets | 15.2 | 8.7 | 7.2 | 0.1 | 0.2 |
Net fair value (gain)/loss on | |||||
derivative financial instruments | (34.2) | 51.8 | 3.0 | (3.5) | |
Net fair value loss/(gain) on other investments | 9.3 | 5.8 | (0.1) | 0.8 | |
Net fair value loss on put and call options | 7 | - | 29.2 | - | 29.2 |
Net (gain)/loss arising from changes in | |||||
fair value of biological assets | 25.1 | (8.2) | 17.6 | - | 0.3 |
Reversal of impairment loss on investment | |||||
in a subsidiary | - | - | - | (5.2) | |
Net gain on partial disposal of 10% equity interest | |||||
in an associate | 17.1 | - | (17.2) | - | (210.3) |
Net gain on disposal of property, plant and equipment | (8.2) | (6.4) | - | - | |
Property, plant and equipment written off | 7 | 3.6 | 2.0 | 0.1 | 0.6 |
Gain on reassessments and modifications of leases | 6 | (0.1) | (0.3) | - | - |
Net reversal of inventories written down to | |||||
net realisable value | (42.0) | (55.4) | - | - | |
Retirement benefits expenses | 32.1 | 4.7 | 3.8 | - | - |
Amortisation of deferred income | 32.2 | (2.5) | (2.5) | - | - |
Fair value changes on financial guarantee contracts | 33.3 | - | - | (0.4) | (0.2) |
Dividend income from associates | - | - | (3.6) | (9.0) | |
Dividend income from subsidiaries | - | - | (840.0) | (925.2) | |
Share of results of associates | (350.9) | (272.8) | - | - | |
Share of results of joint ventures | (4.3) | (1.5) | - | - | |
Interest income | 8 | (42.2) | (34.4) | (133.5) | (141.4) |
Finance costs | 9 | 160.1 | 149.4 | 117.4 | 126.4 |
Net foreign currency translation loss on | |||||
foreign currency denominated borrowings | 10 | 18.9 | 193.5 | 16.6 | 93.3 |
Net unrealised foreign currency translation (gain)/loss | (0.2) | (10.6) | 36.9 | (53.3) | |
Others | 3.4 | (15.9) | 16.4 | (13.1) | |
Operating profit/(loss) before working capital changes | 1,502.8 | 1,936.3 | 30.0 | (24.5) | |
(Increase)/Decrease in inventories | (63.3) | 546.3 | - | - | |
(Increase)/Decrease in trade receivables | (39.2) | 292.1 | - | - | |
(Increase)/Decrease in other receivables, deposits and | |||||
prepayments | (4.0) | 55.3 | (1.3) | 8.3 | |
Increase/(Decrease) in trade payables | 48.2 | (102.7) | - | - | |
Increase/(Decrease) in other payables and accruals | 27.5 | (118.3) | (6.5) | 7.5 | |
Cash generated from/(used in) operations | 1,472.0 | 2,609.0 | 22.2 | (8.7) | |
Retirement benefits paid | 32.1 | (4.7) | (3.4) | - | - |
Tax refunded | 13.4 | 17.4 | - | - | |
Tax paid | (246.9) | (549.8) | (20.3) | (23.6) | |
Net cash from/(used in) operating activities | 1,233.8 | 2,073.2 | 1.9 | (32.3) |
The notes on pages 151 to 248 form an integral part of the financial statements.
Group Overview | Key Messages | Strategic Value Creation | Strategic Progress | Performance Review | Governance | Financial Report | Additional Information | 149 |
Group | Company | ||||
In RM million | Note | 2024 | 2023 | 2024 | 2023 |
Cash Flows From Investing Activities | |||||
Dividends received from associates | 147.1 | 175.7 | 3.6 | 9.0 | |
Dividends received from subsidiaries | - | - | 840.0 | 925.2 | |
Dividends received from other investments | 2.7 | 2.2 | - | 0.4 | |
Interest received | 42.3 | 34.2 | 3.1 | 6.9 | |
Proceeds from disposal of property, | |||||
plant and equipment | 9.3 | 14.4 | - | - | |
Proceeds from partial disposal of 10% | |||||
equity interest in an associate | - | 465.8 | - | 465.8 | |
Proceeds from disposal of a subsidiary | - | - | - | 0.1 | |
Return of capital contribution from other investment | - | 5.2 | - | - | |
Acquisitions of additional interests in subsidiaries | - | - | (1.0) | (8.2) | |
Acquisition of equity interest from a | |||||
non-controlling interest | - | (7.1) | - | - | |
Additions to property, plant and equipment | 14 | (663.9) | (604.9) | (1.5) | (2.5) |
Additions to investment properties | (0.3) | (0.3) | - | - | |
Additions to other investments | (25.6) | (21.4) | - | - | |
Additions to intangible assets | 15.2 | (5.7) | (6.1) | (0.1) | - |
Additions to biological assets | 25.1 | (3.6) | (3.8) | (0.2) | (0.2) |
Additional investment in an associate | - | (147.4) | - | (147.4) | |
Repayment from an associate | - | 183.0 | - | 183.0 | |
Investment in a joint venture | (0.5) | - | - | - | |
Repayment from a joint venture | 1.2 | - | 1.2 | - | |
Repayment from plasma receivables | 3.9 | - | - | - | |
(Advances to)/Repayment from subsidiaries | - | - | (51.6) | 120.8 | |
Subscriptions of redeemable preference shares | |||||
of subsidiaries | - | - | (82.2) | (3.8) | |
Redemptions of redeemable preference shares | |||||
of subsidiaries | - | - | 53.4 | 0.9 | |
Proceeds from share capital reduction of subsidiaries | - | - | - | 1.1 | |
Net cash (used in)/from investing activities | (493.1) | 89.5 | 764.7 | 1,551.1 |
The notes on pages 151 to 248 form an integral part of the financial statements.
150 IOI Corporation Berhad | Annual Report 2024 | |
STATEMENTS OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024
Group | Company | ||||
In RM million | Note | 2024 | 2023 | 2024 | 2023 |
Cash Flows From Financing Activities | |||||
Proceeds from issuance of shares to a | |||||
non-controlling interest | 0.3 | 0.3 | - | - | |
Repurchase of shares | 28.2 | - | (34.4) | - | (34.4) |
Dividends paid | 13 | (589.4) | (869.4) | (589.4) | (869.4) |
Dividends paid to non-controlling interests | (14.7) | (14.4) | - | - | |
Net settlements of hedging instruments arising | |||||
from repayments of borrowings | - | (0.3) | - | (0.3) | |
Repayments of Islamic financing facilities | - | (69.2) | - | (69.2) | |
Net repayments of short term borrowings | (15.7) | (1,350.8) | (45.7) | (522.7) | |
Payments of lease liabilities | 31.2 | (12.0) | (11.1) | - | - |
Payments of lease interest expense | 31.2 | (3.8) | (3.9) | - | - |
Finance costs paid | (161.0) | (150.1) | (65.2) | (50.9) | |
Net cash used in financing activities | (796.3) | (2,503.3) | (700.3) | (1,546.9) | |
Net (decrease)/increase in cash and cash equivalents | (55.6) | (340.6) | 66.3 | (28.1) | |
Cash and cash equivalents at beginning of | |||||
financial year | 2,235.0 | 2,552.9 | 116.4 | 127.4 | |
Effects of exchange rate changes | 2.3 | 22.7 | (0.7) | 17.1 | |
Cash and cash equivalents at end of financial year | 35 | 2,181.7 | 2,235.0 | 182.0 | 116.4 |
The notes on pages 151 to 248 form an integral part of the financial statements.
Group Overview | Key Messages | Strategic Value Creation | Strategic Progress | Performance Review | Governance | Financial Report | Additional Information | 151 |
Notes to the
FINANCIAL STATEMENTS
-
CORPORATE INFORMATION
The Company is a public limited liability company, incorporated and domiciled in Malaysia and listed on the Main Market of Bursa Malaysia Securities Berhad.
Both the registered office and principal place of business of the Company are located at Level 29, IOI City Tower 2, Lebuh IRC, IOI Resort City, 62502 Putrajaya, Wilayah Persekutuan (Putrajaya), Malaysia.
The principal activity of the Company is that of an investment holding company.
The principal activities of the subsidiaries, associates and joint ventures are primarily involved in investment holding; oil palm cultivation and processing; commodities trading and refinery; manufacture and sales of fatty acids, soap noodles, glycerine and other oleochemical related products; manufacture and sale of plasticizer products, margarine, shortening and fat spreads; processing of oil palm trunks and other bio-matter derived from plantations to produce materials used in furniture, construction and building industries; processing of crude coconut oil; production and supply of palm-based renewable energy; as well as provision of management services and other related business activities. The principal activities and the details of the subsidiaries, associates and joint ventures are set out in Note 40 to the financial statements.
There have been no significant changes in the nature of the activities of the Group and of the Company during the financial year. The ultimate holding company is Progressive Holdings Sdn Bhd, which is incorporated in Malaysia. - BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial Reporting Standards ("MFRSs"), IFRS Accounting Standards and the provisions of the Companies Act 2016 in Malaysia.
The financial statements of the Group and of the Company have been prepared under the historical cost convention except as otherwise stated in the financial statements.
The financial statements are presented in Ringgit Malaysia ("RM"), which is also the Company's functional currency and all financial information presented in RM are rounded to the nearest million, except where otherwise stated. - ADOPTION OF NEW MFRSs AND AMENDMENT TO MFRSs
3.1 New MFRSs adopted during the current financial year Title
MFRS 17 Insurance Contracts
Amendments to MFRS 17 Initial Application of MFRS 17 and MFRS 9 - Comparative Information Amendments to MFRS 101 Disclosure of Accounting Policies
Amendments to MFRS 108 Definition of Accounting Estimates
Amendments to MFRS 112 Deferred Tax related to Assets and Liabilities arising from a Single Transaction Amendments to MFRS 112 International Tax Reform - Pillar Two Model Rules
There is no material impact upon adoption of the above Standard and Amendments to MFRSs during the financial year.
Amendments to MFRS 112 International Tax Reform - Pillar Two Model Rules
The Amendments provide a temporary mandatory relief from deferred tax accounting for the top-up tax, which is effective immediately, and requirements about the Pillar Two exposure that are disclosed in Note 19 to the financial statements. The temporary mandatory relief applies retrospectively.