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Message from the Managing Director
Responsible Marketplace Practices
Drink Sensibly
This is the 3
rd
year of implementation of this programme.
In FY12, we brought Drink Sensibly to East Malaysia.
To-date, we have engaged with more than
20,000 consumers through our awareness activities
and have trained more than 5,000 front-line staff of
outlets on sensible drinking and sensible serving.
Our Code of Marketing Practice
The Code outlines strict guidelines which employees and company representatives
are to follow when marketing and promoting GAB’s products. In FY12, training
sessions were held for our commercial employees and Marketing agencies.
Engaging the Authorities
We engage with relevant authorities regularly to update them and discuss the
following:
•
Drink Sensibly
•
Role of Industry in the economy and in promoting the F&B industry
and tourism
•
Taxes on alcohol
•
GAB Foundation and its projects
Engaging Suppliers
Being a supplier of GAB requires excellence and integrity. Our Code of Conduct
for vendors and suppliers outline our expectations. In addition to commercial
requirements, we expect our suppliers to also comply in these following areas:
•
Labour Standard and Policies
•
Environmental Policies
•
Health and Safety
•
Competition Law
No to Bribery and Corruption
We are committed to transparent and fair business practices and have a zero-tolerance
policy on bribery and corruption. Corporate values which emphasise ethical behaviour
are set out in the Management Handbook and our Code of Conduct. All employees are
made aware of our Code of Conduct on a regular basis.
tHe gab foundation
– 5 years of enriching
communities
In the five years since its inception,
the GAB Foundation has reached
out to more than 16,000 people
through its activities under its three
pillars: environmental conservation,
education and community. Log
on the GAB Foundation Facebook
page at www.facebook.com/gabfoundation for more information.
education
English Enrichment training Programme and English Programme
Since Financial Year 2009 (FY09), GAB Foundation has been running its English Programme to
assist primary school children improve their English through extra after-school classes run by
volunteer facilitators. In FY12, we evolved the programme to focus on teachers. The Foundation
organised a 4-day training programme for 70 English teachers from 40 primary schools across
Malacca, Negeri Sembilan, Perak, Sabah and Sarawak. The training aimed to sharpen their
English proficiency and to equip them with tools and skills to enrich their teaching experience.
These trained English teachers then rolled out the Foundation’s English Programme at their
respective schools. More than 1,000 students benefitted from this programme this year, and
we expect to touch thousands more in the years to come.
coMMunity
the Big Day Out
Started in FY2010, this annual event challenges GAB employees across the country to come up
with impactful activities to enrich the community. Employees work in teams and are allocated
seed money to use or grow for this purpose and they are encouraged to invite their business
partners to participate.
• Relevant training and development plans for all
• Specialised training development for Leadership Team
• Management Trainee and Internship Programmes
• Completed a benefits review which has led to
enhanced benefits such as 90-day maternity leave,
better hospitalisation and optical coverage
• Reward good performance through healthy bonus
payouts and promotions
• Monthly breakfast meetings with MD
• Quarterly townhalls, and Q&As with Management Team
• HR Drop boxes installed around the office for feedback
• Quarterly Employee Newsletters
• We work to ensure that all our actions are consistent
with our values
• Diversity and flexi-hours
• Newly refurbished café
• In-house gym built, complete with shower facilities to
promote a healthy lifestyle among employees
• Drink Sensibly programme for employees
• GAB delivered 11 consecutive years of profit, revenue and
market share growth
• TPM Programmes to improve work processes, quality and
performance
• Upgrade of IT system to meet growing business needs and
deliver greater efficiency
KEy INItIAtIVES IMPLEMENtED
Grows
Greatness
Great
Rewards
truly
Engaging
Lives its Values
Great Working
Environment
Great
Performance
HR PILLARS
Our HR Pillars
This has been another good year for GAB. We succeeded in achieving an 11
th
consecutive year of profit, revenue and market share growth and we also declared
our biggest dividend payout to our shareholders. The growth of the Company was
accompanied by further strides forward in our corporate responsibility (CR) initiatives
and performance.
Financial year 2012 (FY12) marks the 5th year of the GAB Foundation. We have
seen good progress in our programmes under the three focus areas: environmental
conservation, education and community. FY12 saw GAB Foundation enhance its
projects to increase impact and reach. The Foundation expanded its W.A.T.E.R
Project beyond Sungei Way by holding its biggest River Carnival to-date at Zoo
Negara, reaching more than 3,000 people. Under its Education pillar, the Foundation
evolved its English Programme to equip English teachers with the right skills so that
in turn they may enrich the lives of their students, reaching more students in the
years to come.
We also continue to make progress in our quest to encourage sensible drinking. We
gave out Drink Sensibly (DS) bottled water, equipped with DS tips to more than 20,000
consumers, trained 1,600 frontline staff of outlets and brought DS to our consumers
in both Sabah and Sarawak. Internally, we continue to engage with our employees to
ensure that they understand the importance of drinking sensibly.
Our people remain a main focus with our HR 7 Pillars forming the foundation of our
efforts. Since its introduction in 2007, we have upped our spend on training and
development, with our FY12 budget for training and development being roughly 50
per cent more than it was six years ago. We understand that employee engagement
is an on-going process and we are constantly learning and evolving to stay relevant to
the needs of our growing workforce.
Although we made progress in CR overall, we fell short in two areas - health and
safety, and our environmental performance. We did not meet our accident target,
with quite a significant increase in severity rate due to three injuries that required a
pro-longed period of time for recovery. The cause of the accidents has since been
rectified, and preventive measures put into place. We will be increasing our efforts
this year to meet the zero accident target set.
With regards to our environmental performance, we only recorded marginal changes
in our utilities consumption. One of the main reasons for this is the Company’s
decision to cut our Malaysian Duty Not Paid (MDNP) business by over 50 per cent.
Although this has had little impact on our bottom line, it affected some economies
of scale that previously helped reduce our utilities consumption per unit of volume
produced.
Protecting the environment remains a top priority for us. Over the last few years,
we have spent over RM120 million in modernising our brewery to increase efficiency
and reduce the impact we make on the environment. Today, I am proud to say that
we use less water and electricity than we did five years ago, despite an increase
in volumes produced. Additionally, the stringent processes we have put in place as
a result of Total Productive Management (TPM) support our quest for continuous
progress.
In line with our commitment towards CR, we have taken a step towards ensuring
that our CR reporting is meaningful. Last year, for the first time ever, GAB embarked
on a structured stakeholder engagement exercise, to help us understand the
concerns and challenges of these important partners. This year, we have opted to
only publish a full CR report once every two years to allow for more meaningful
reporting and for us to gauge, accurately, if real progress has been made against set
targets. For FY12, we have an overview of our CR activities with brief updates on key
initiatives. A full and complete CR Report will be published next year.
In closing, I would like to thank every one of our employees, suppliers, customers,
distributors, investors as well as the members of our local communities for their
continued support on our ongoing road to excellence.
Charles Ireland
Managing Director
October 2012
•
our licence to operate depends on our efforts in marketing our
brands responsibly and in driving sensible alcohol consumption
•
delivering transparent and sustained financial performance
drives share prices higher and builds shareholder loyalty
•
product safety procedures are crucial in ensuring that our
consumers consume products that are of high quality and
meet safety standards
Best Practices in the Workplace
•
we need to attract and retain the best talents in Malaysia.
this is achieved by offering competitive development
opportunities and benefits in the market
•
promoting a healthy and safe workplace means that we
achieve maximum productivity and avoid costly absences
Enriching Communities
•
the community is made up of our current and future
employees, suppliers, shareholders, trade partners and
consumers. their trust and confidence in us are crucial
for our continued performance and long-term success
In 2012, we expanded the W.A.T.E.R Project beyond Sungai Way. In July 2012, we held our
largest River Carnival to-date at Zoo Negara with the aim of creating greater awareness on
the importance of conserving our rivers. The carnival was attended by over 3,000 people.
In September 2012, the GAB Foundation organised the inaugural National River Forum,
creating a platform for international speakers to share best practices on river rehabilitation.
In FY13, we will be bringing the W.A.T.E.R Project to Perak and Penang.
We continue to invest in improving efficiencies within our brewery. Due to our decision to
cut our Malaysian Duty Not Paid (MDNP) business by over 50%, it affected some economies
of scale that previously helped reduce our utilities consumption per unit of volume produced.
As for thermal energy consumption, the increase consumption figures is due to compliance to
definitions in reporting. We expect the comparison figures to normalise from next year onwards.
fy11
fy12
Percentage
change (%)
Thermal energy consumption
91.60MJ/HL
104.01MJ/HL
+13.5
Electricity consumption
11.27kwH/HL 11.12kwH/HL
-1.3
Water consumption
4.71HL/HL
4.73HL/HL
+0.4
Total co-products, packaging &
industrial waste
18.00kg/HL
18.04kg/HL
+0.2
River Rehabilitation - the w.a.t.e.R project
The W.A.T.E.R project commenced in 2007, in collaboration with Global Environment Centre
(GEC), where the GAB Foundation adopted the entire 2.5 stretch of Sungei Way.
Good Environmental Performance
•
efficient use of inputs, such as electricity and thermal energy
and water, is a vast cost saver and it reduces dependency on
fluctuating prices
•
protecting and preserving local waterways is crucial in
maintaining access to water and in forging strong relations
with communities
December 2007
W.A.T.E.R Project
launched
Community
engagement in
Progress
March 2008
Introduction of
rubbish traps
May 2009
Improvement in
water quality &
biodiversity
August 2009
Habitat creation
March 2011
Mobile River Care
Unit launched
April 2011
River
Management
Handbook
launched
July 2011
Workshop for
DID Officials
March 2012
Release of fish
into Sungai Way
July 2012
River Carnival at
Zoo Negara
September 2012
Held inaugural
National River
Forum
MaJoR Milestones
• Dedicated HR Manager assigned for each department
• HR Department restructured to focus more on strategic
HR services
• New HR Charter launched, focusing on customer
and execution
5-Star
HR Capabilities
Making Health and safety a priority
We have revised our FY12 target for number of accidents to zero. We did not meet our FY12
target and our average lost days per accident increased from 4.52 to 101.93. This was mainly
due to three accidents that required extended number of medical leave days. The cause of
these accidents has since been rectified and safety measures put into place.
Number of accidents per 100
full-time employees
Target LTA
Lost time accidents (LTA)
Linear (LTA)
1.99
2.2
2.2
2.6
2.75
3.05
1.8
2012
2011
2010
2009
2008
2007
2006
1.91
0
0
1.98
2.05
1.15
2.09
Financial year ended 30 June
Target severity rate
(average lost days per accident)
Tackling severe accidents
Severity rate
0
101.93
10
12
45.14
25
30
4.52
9
0
5.28 13
24.05
16.72
2012
2011
2010
2009
2008
2007
2006
Financial year ended 30 June