tomypak holdings berhad annual report 2012 - Announcements ...

Chairman’s Statement (Cont’d)
The Group has adopted a dividend policy
of distributing at least 40% of the Group’s
annual net profit to shareholders. In
addition, the Group endeavours that the
dividend will continue to be paid on a
quarterly basis.
The adoption of the dividend policy indicates
the Group’s maturity as a public-listed entity,
as well as the Board’s confidence in the
Group’s financial prospects. This dividend
policy also enables the shareholders to
participate in the growth and profits of the
Group and serves to reward its supportive
and long term shareholders.
Review of Operations
During the financial year 2012, further
improvements on its existing production
capacities through investments in up
to-date machinery continue to become
the catalyst for the Group’s enhanced
productivity, operational efficiency and
quality of products.
The implementation of these has placed
the Group in firmer ground for increased
revenue and earnings.
Corporate Governance
The Group is driven by the commitment of
its Board of Directors and Management to
achieve the optimal governance framework
set out in the Malaysian Code on Corporate
Governance to protect the interests of all
stakeholders and enhance the Group’s
financial performance. The Group has
implemented a sound system of internal
control within its daily operations to ensure
the Group’s long term sustainable growth.
Corporate Social Responsibility
As a socially responsible corporate, the
Group undertook various efforts to plan,
organise and promote social welfare
activities that benefited the community,
the environment, our employees and other
stakeholders. These include implementing
environmental awareness in our business
operations, as well as monitoring air, noise,
chemical conservation so as to reduce the
impact of pollution and to ensure a more
comfortable working environment for our
employees.
Outlook and Prospect
Going forward, the global and regional
economic outlook is expected to be
challenging and uncertain. Malaysia being
an open economy, the economic growth
will largely hinge on the global economic
momentum. The slower growth in the
United States and Eurozone, the volatile
commodity and crude oil prices will weigh
on Malaysia’s economic performance.
Raw materials of flexible packaging industry
are mainly derivates of crude oil. Prices for
these raw materials depend mainly on crude
oil prices and industry demand-supply
conditions. The industries in Malaysia
will face another challenge in managing
manpower cost taking into consideration the
effects of the minimum wage requirements.
Despite the more challenging business
environment, the Group is consistently
focused on its core defensive and resilient
business. Around 90% of the Group’s
revenue derived from the recession-resilient
food and beverage sector. Being a necessity
item especially in food and beverage
industry, we believe the demand for flexible
packing will remain strong.
TOMYPAK HOLDINGS BERHAD
ANNUAL REPORT 2012 pg 21
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