KUALA LUMPUR KEPONG BERHAD - Announcements

KUALA LUMPUR KEPONG BERHAD
(15043-V)
(INCORPORATED IN MALAYSIA)
Report and Accounts to 30th September
1999

Contents
KUALA LUMPUR KEPONG BERHAD
(INCORPORATED IN MALAYSIA)
Page
Board of Directors 2
Corporate Information 3
Notice of Meeting 4 - 5
Corporate Calendar 6 - 7
Group Highlights 8
Chairman’s Review 9 - 19
Audit Committee 20
Report of the Directors 21 - 25
Consolidated Profit & Loss Account 26
Consolidated Balance Sheet 27
Profit & Loss Account of the Holding Company 28
Balance Sheet of the Holding Company 29
Consolidated Cash Flow Statement 30 - 32
Notes on the Accounts 33 - 52
Directors’ Statement and Statutory Declaration 53
Report of the Auditors 54
Area Statement 55
Five Year Plantation Statistics 56
Five Year Financial Statistics 57
Planted Area/Production Graphs 58
Earnings Per Share/Net Tangible Asset Per Share/Shareholders’ Funds Graphs 59
Properties of the Group 60 - 65
Location of the Plantations in Malaysia 66
Location of the Group’s Overseas Agricultural Operations 67
Shareholding Statistics 68 - 69

BOARD OF DIRECTORS
Front row from left to right:
Yeoh Eng Khoon, YM Dato’ Tengku Robert Hamzah, Yeoh Chin Hin, Dato’ Lee Oi Hian, R. M. Alias,
Datuk Abdul Rahman bin Mohd. Ramli
Back row from left to right:
Maj-Gen (R) Dato’ Dr. Mahmood B Sulaiman, Ong Beng Kee, Lee Soon Hian, Tan Sri Dato’ Thong Yaw Hong,
Lee Hau Hian, Charles Letts

CORPORATE
INFORMATION
BOARD OF DIRECTORS
Dato’ Lee Oi Hian - Executive Chairman
Yeoh Chin Hin @
Charles Letts
YM Dato’ Tengku Robert Hamzah
R. M. Alias @
Maj-Gen (R) Dato’ Dr. Mahmood B Sulaiman @
Ong Beng Kee - Executive Director
Lee Hau Hian
Tan Sri Dato’ Thong Yaw Hong
Lee Soon Hian - Executive Director
Datuk Abdul Rahman bin Mohd. Ramli
(Appointed on 11th September, 1999)
Yeoh Eng Khoon
(Alternate to Yeoh Chin Hin)
Dato’ Mohd. Hilmey bin Mohd. Taib
(Resigned with effect from 13th August, 1999)
Mohd. Ridza bin Yahya
(Resigned as alternate director to Dato’ Mohd. Hilmey bin Mohd. Taib
with effect from 13th August, 1999)
Company Secretaries
J. C. Lim
Fan Chee Kum
Auditors
KPMG
Principal Registrar and Registered Office
Kuala Lumpur Kepong Berhad,
Wisma Taiko,
1, Jalan S. P. Seenivasagam,
30000 Ipoh, Perak Darul Ridzuan, Malaysia.
Telephone: 605-2417844
Branch Registrar
M. P. Evans (UK) Ltd.,
3, Clanricarde Gardens,
Tunbridge Wells,
Kent TN1 1HQ, England.
Telephone: (01892) 516333
Bankers
Malayan Banking Berhad
HSBC Bank Malaysia Berhad
Public Bank Berhad
RHB Bank Berhad
Stock Exchange Listings
Kuala Lumpur Stock Exchange
London Stock Exchange
@ Member of Remuneration Committee

Notice of Meeting
KUALA LUMPUR KEPONG BERHAD
(INCORPORATED IN MALAYSIA)
Notice is hereby given that the Twenty-seventh Annual General Meeting of the Company will be held at the
registered office, Wisma Taiko, 1, Jalan S.P. Seenivasagam, 30000 Ipoh, Perak Darul Ridzuan, Malaysia on
Wednesday, 23rd February, 2000 at 12.00 noon for the following purposes:-
1. To receive and consider the accounts for the year ended 30th September, 1999 and the Directors’ and
Auditors’ reports thereon. [Resolution 1]
2. To sanction the payment of a final dividend of 9 sen per share less 28% Malaysian Income Tax and a
special dividend of 5 sen per share less 28% Malaysian Income Tax. [Resolution 2]
3. To re-elect the following Directors:-
(i) Dato’ Lee Oi Hian [Resolution 3]
(ii) YM Dato’ Tengku Robert Hamzah [Resolution 4]
(iii) Datuk Abdul Rahman bin Mohd. Ramli [Resolution 5]
4. To consider and, if thought fit, pass a resolution pursuant to Section 129(6) of the Companies Act, 1965 to
re-appoint the following as Directors of the Company and to hold office until the next Annual General
Meeting of the Company:-
(i) Yeoh Chin Hin [Resolution 6]
(ii) Charles Letts [Resolution 7]
(iii) Maj-Gen (R) Dato’ Dr. Mahmood B Sulaiman [Resolution 8]
5. To fix and approve Directors’ fees for the year ended 30th September, 1999 amounting to RM666,000
(1998: RM581,000). [Resolution 9]
6. To appoint Auditors and to authorise the Directors to fix their remuneration. [Resolution 10]
7. As SPECIAL BUSINESS, to consider and, if thought fit, pass the following as an Ordinary Resolution :-
[Resolution 11]
PROPOSED AUTHORITY TO BUY BACK ITS OWN SHARES BY THE COMPANY
THAT authority be given to the Directors for the Company to buy back such amount of ordinary shares of
RM1.00 each in the Company (“Authority to Buy Back Shares”) as may be determined by the Directors
from time to time through the Kuala Lumpur Stock Exchange upon such terms and conditions as the
Directors may deem fit and expedient in the best interests of the Company provided that the aggregate
number of shares purchased pursuant to this resolution does not exceed 2.8% of the total issued and
paid-up share capital of the Company (equivalent to 20,000,000 shares in the Company based on its
current issued and paid-up share capital [excluding treasury shares] of 710,177,128 shares of RM1.00 each
as at 10th December, 1999) and that an amount not exceeding the total retained profits of the Company
be allocated for the Authority to Buy Back Shares (the audited retained profits of the Company as at 30th
September, 1999 was RM646 million) AND THAT the Directors may resolve to cancel the shares so
purchased and/or retain the shares so purchased as treasury shares;
AND THAT the Directors be and are hereby empowered to do all such acts and things to give full effect to
the Authority to Buy Back Shares with full powers to assent to any conditions, modifications, revaluations,
variations and/or amendments (if any) as may be imposed by the relevant authorities AND THAT such
authority shall commence upon passing of this ordinary resolution and will expire at the conclusion of the
next Annual General Meeting (“AGM”) of the Company following the passing of this ordinary resolution or
the expiry of the period within which the next AGM is required by law to be held (unless earlier revoked or
varied by ordinary resolution of the shareholders of the Company in general meeting) but not so as to
prejudice the completion of a purchase by the Company before the aforesaid expiry date and, in any event,
in accordance with the provisions of the guidelines issued by the Kuala Lumpur Stock Exchange or any
other relevant authority.
4

Notice of Meeting (Continued)
8. To transact any other ordinary business of the Company.
Ipoh, Perak Darul Ridzuan,
Malaysia.
7th January, 2000.
Notes
KUALA LUMPUR KEPONG BERHAD
(INCORPORATED IN MALAYSIA)
By Order of the Board
J. C. LIM
FAN CHEE KUM
Company Secretaries
(1) A member of the Company entitled to attend and vote at the meeting is entitled to appoint not more than
two proxies to vote in his stead. A proxy need not be a member of the Company.
(2) The instrument appointing a proxy must be deposited at the registered office of the Company not less than
48 hours before the time set for the meeting.
(3) The final and special dividends, if approved, will be paid on 20th March, 2000 to all shareholders on the
Register of Members as at 24th February, 2000.
A Depositor with the Malaysian Central Depository shall qualify for entitlement to the dividends only in
respect of:-
(i) Shares deposited into the Depositor’s securities account before 12.30 p.m. on 22nd February, 2000
in respect of shares which are exempted from Mandatory Deposit;
(ii) Shares transferred into the Depositor’s securities account before 12.30 p.m. on 24th February, 2000
in respect of ordinary transfers; and
(iii) Shares bought on the Kuala Lumpur Stock Exchange on a cum entitlement basis according to the
Rules of the Kuala Lumpur Stock Exchange.
Registrable transfers received by the Company’s Branch Registrar in United Kingdom on or before 24th
February, 2000 will be registered for entitlements to the dividend payments.
(4) For Resolution 11, further information on the Share Buy Back is set out in the Circular to Shareholders of
the Company dated 7th January, 2000 which is despatched together with the Company’s 1999 Report and
Accounts.
(A proxy form is enclosed with this Report and Accounts).
5

Corporate Calendar
His Excellency, the Ambassador of the People’s Republic of China
to Malaysia at the KDC Complex
25th November, 1998
The Group announced the
incorporation of a new subsidiary,
namely, Crabtree & Evelyn (Hong
Kong) Limited for its retailing
operations of Crabtree & Evelyn
products in Hong Kong.
27th November, 1998
His Excellency, Mr Liu Tong Kiao,
the Chinese Ambassador to
Malaysia and entourage together
with the President of the Tawau
Chinese Chamber of Commerce,
Datuk Kho Choon Seng, paid a
familiarisation visit to the
Kulumpang Development
Corporation Complex in Sabah.
4th December, 1998
The Group completed the
acquisition of 25% and 10%
ordinary shareholding in KL-Kepong
Cocoa Products Sdn Bhd from Batu
Kawan Berhad and Taiko
Management Sdn Bhd respectively
for a total cash consideration of
RM11,550,000 and 100% ordinary
shareholding in B.K.B. Hevea
Products Sdn Bhd from Batu
Kawan Berhad for cash
consideration of RM24,000,000.
10th December, 1998
Announcement of annual results of
the Group for the year ended 30th
September, 1998.
Mohd. Ridza bin Yahya was
appointed as an alternate director
to Dato’ Mohd. Hilmey bin Mohd.
Taib, replacing Sharifatul Hanizah
binti Said Ali who resigned on 17th
November, 1998.
12th December, 1998
The Group entered into a Joint-
Venture Agreement with Zuellig
Classics Marketing Corporation in
the Philippines for the marketing of
Crabtree & Evelyn products in that
country.
C & E 1st
Asia-Pacific
Workshop,
Paradise
Sandy Bay,
Penang
2nd January, 1999
Commencement of earthworks at
the 40 tn/hr Pinang Palm Oil Mill in
Semporna, Sabah.
3rd February, 1999
The Company’s 26th Annual
General Meeting was held at its
Corporate Head Office, Wisma
Taiko, Ipoh.
12th February, 1999
KLK’s subsidiary,
Masif Healthcare
Products Sdn Bhd
was awarded the
Certificate of
Accreditation for
the production of
Powdered
Standard
Malaysian Glove
and Powder-free Standard
Malaysian Glove.
2nd March, 1999
Payment of a final dividend of 9 sen
per share, less 28% income tax and
a special dividend of 10 sen per
share, less 28% income tax for the
financial year ended 30th
September, 1998.
23rd April, 1999
The annual Assistant Managers’
Conference (Plantations) was held
at Heritage Hotel, Ipoh.
25th May, 1999
Announcement of interim results
for half year ended 31st March,
1999.
9th to 13th June, 1999
KLK participated in the Minggu
Pelaburan Bersama PNB organised
by Permodalan Nasional Berhad,
held at the Putra World Trade
Centre, Kuala Lumpur.

Managers’
Conference,
Penang
23rd to 26th June, 1999
Crabtree & Evelyn 1st Asia-Pacific
Workshop was held at Paradise
Sandy Bay, Penang.
28th June, 1999
KLK’s 55% owned subsidiary,
Voray Holdings Limited, Hong
Kong, disposed of a 30% equity in
Beijing King Voray Edible Oil Co Ltd
(“BKVEO”). On completion of the
transaction, BKVEO became a 25%
associate of the KLK Group.
29th June, 1999
KLK’s Palm Oil Mill at Tanjong
Malim, Perak Darul Ridzuan was
awarded the “Anugerah Industri
Sawit Malaysia Tahun 1998” for
achieving the highest Oil Extraction
Rate in the Wilayah Tengah region.
Minggu Pelaburan Bersama PNB, Putra
World Trade Centre, Kuala Lumpur
Malaysian
Palm Oil
Industries
Award
1998
28th July, 1999
KLK’s subsidiary, B.K.B. Hevea
Products
Sdn Bhd
was
awarded the
MS ISO
9002
certification
for the
manufacture
of 3-layer
parquet.
9th August, 1999
Payment of an interim dividend of 6
sen per share, less 28% income tax
for the financial year ending 30th
September, 1999.
13th August, 1999
Dato’ Mohd. Hilmey bin Mohd. Taib
and Mohd. Ridza bin Yahya
resigned as Director and Alternate
Director respectively.
11th September, 1999
The Managers’ Conference
(Plantations) was held at the Hotel
Equatorial, Penang.
Datuk Abdul Rahman bin Mohd.
Ramli was appointed as Director of
KLK and Member of the Audit
Committee.
Mr Lee Soon Hian was appointed
as an Executive Director of KLK.
30th September, 1999
Successful commissioning of 80
tn/hr SWP Palm Oil Mill, Belitung,
Indonesia.
SWP Palm Oil Mill, Belitung, Indonesia

Group Highlights
KUALA LUMPUR KEPONG BERHAD
(INCORPORATED IN MALAYSIA)
Financial 1999 1998
Turnover - RM’000 2,404,255 2,334,725
Profit:before
taxation - RM’000 399,326 367,943
after taxation and minority shareholders’ interest - RM’000 370,406 273,964
Earnings per share:before
taxation - sen 56.2 51.6
after taxation - sen 52.1 38.4
Dividend per share:gross
- sen 20.0 25.0
net - sen 14.4 18.0
Net tangible asset - RM’000 3,180,103 2,931,558
Net tangible asset per share - RM 4.48 4.11
Production
Fresh Fruit Bunches - tonnes 1,271,165 1,128,694
Rubber - ‘000 kgs 26,900 25,301
Cocoa - ‘000 kgs 2,230 2,092
8

Chairman’s Review
KUALA LUMPUR KEPONG BERHAD
(INCORPORATED IN MALAYSIA)
It gives me great pleasure to present on behalf of the Board, the Annual Report of the KLK
Group for the financial year ended 30 September, 1999.
For the year under review your Group achieved a profit before tax of RM399.33 million,
which exceeds last year’s figure of RM367.94 million by RM31.39 million or 8.5%.
However, profit after tax and minority shareholders’ interests rose by an even bigger margin
of 35.2% from RM273.96 million to RM370.41 million. This is on account of the
Government’s one-off tax waiver on operating profits for fiscal year 1999. As a result,
earnings per share increased substantially from 38.4 sen to 52.1 sen.
The bulk of the Group’s profit are derived from its core business of plantations, principally
that of the oil palms sector. Results from our resource-based manufacturing subsidiaries
were mixed, but as a whole this sector managed a significant turnaround. The retailing
sector however, performed below expectations.
Your Board has recommended a final dividend payment of 9 sen per share less tax, plus a
special dividend of 5 sen per share less tax, which when added to the interim dividend of 6
sen per share paid earlier will make up a total of 20 sen per share for the year. As a
comparison, last year’s total dividends amounted to 25 sen per share and in terms of
absolute quantum this year’s dividend payment will amount to RM102.27 million as against
last year’s RM128.27 million.
PLANTATIONS
Plantation profit reached a record high of RM301.33 million, exceeding last year’s result of
RM287.74 million by RM13.59 million or 4.7%. Oil palms remained by far the single largest
profit generator in line with past years’ pattern, contributing in this instance 98.8% of the
total plantation profit, whilst the other two crops, rubber and cocoa saw their roles
diminishing further, as they are being progressively replaced with oil palms.
Although the year’s average price of crude palm oil (CPO) realised at RM1,711 per tonne
may not seem to be that significantly lower than last year’s figure of RM1,847 per tonne, it
however, belies the fact that there was a sharp plunge in the price level from over RM2,500
per tonne achieved at the beginning of the year to an intra-year low of below RM1,000 per
tonne before recovering to the current level of around RM1,200 per tonne, at which it
appears to have found support. Nevertheless, the increase in FFB production by 12.6% to
9

Plantation Activities
Young plantings at PT ADEI, Indonesia
Newly matured oil palms in Ladang Paloh
Tissue-cultured oil palms
Oil palm nursery at PT ADEI, Indonesia