Fraser and Neave : Responses to Substantial and Relevant Questions From Shareholders (14Jan21)

ANNUAL GENERAL MEETING::VOLUNTARY

Issuer & Securities

Issuer/ Manager

FRASER AND NEAVE LIMITED.

Security

FRASER AND NEAVE, LIMITED - SG1T58930911 - F99

Announcement Details

Announcement Title

Annual General Meeting

Date &Time of Broadcast

14-Jan-2021 18:49:34

Status

New

Announcement Reference

SG210114MEETGBOG

Submitted By (Co./ Ind. Name)

Hui Choon Kit

Designation

Company Secretary

Financial Year End

30/09/2020

Event Narrative

	Narrative	Narrative Text
	Type
	Additional	Please see attached the responses to substantial and relevant questions from shareholders
	for the 122nd Annual General Meeting of Fraser and Neave, Limited to be held on 21
	Text
	January 2021.
	Event Dates

Meeting Date and Time

21/01/2021 09:30:00

Response Deadline Date

18/01/2021 09:30:00

Event Venue(s)

Place

	Venue(s)	Venue details
	Meeting Venue	The 122nd Annual General Meeting will be held by way of electronic means.

Attachments

SGX_-_Responses_to_Questions_for_FN_AGM_14Jan2021.pdf

Total size =594K MB

FRASER AND NEAVE, LIMITED

(Registration No. 189800001R)

Incorporated in Singapore

122nd ANNUAL GENERAL MEETING TO BE HELD ON 21 JANUARY 2021

RESPONSES TO SUBSTANTIAL AND RELEVANT QUESTIONS FROM SHAREHOLDERS

Fraser and Neave, Limited (the "Company" or "F&N") refers to its announcement dated 28 December 2020 on its 122nd AGM to be convened and held by way of electronic means on Thursday, 21 January 2021 at 9.30 a.m. (Singapore time) (the "Previous Announcement"), and its Notice of AGM dated 28 December 2020.

Capitalised terms used in this announcement shall, unless otherwise defined herein, have the same meanings ascribed to them in the Initial Announcement.

The Company would like to thank shareholders for submitting their questions in advance of its 122nd AGM, and is pleased to set out in the Appendix annexed herein, its responses to the substantial questions received from shareholders that are relevant to the resolutions to be tabled for approval at the 122nd AGM of the Company and to its business.

By Order of the Board

Hui Choon Kit

Company Secretary

14 January 2021

438 Alexandra Road	Tel : [phone]
#20-00 Alexandra Point	Fax : [phone]
Singapore 119958	Website: www.fraserandneave.com

FRASER AND NEAVE, LIMITED

Company Registration No. 189800001R

Incorporated in the Republic of Singapore

Appendix

Responses to Substantial and Relevant Questions for

F&N's 122nd Annual General Meeting

Q1. Please provide an update regarding F&N's recent investment into Starbucks (Thailand) via Coffee Concepts and also share the percentage revenue that this investment is currently contributing to the financials of FY2020.

• As our investment in Starbucks Thailand is equity-accounted, we do not account for its revenue in our financials.
• Starbucks Thailand business has been adversely impacted by the COVID-19 pandemic, much like many other businesses globally. The regulations set during the Nationwide State of Emergency declared on 25 March 2020 significantly impacted its on-premise sales. As COVID-19 restrictions began to ease in the second half of 2020, we saw gradual improvement in its business.
• Despite the adverse impact of COVID-19 pandemic, this investment remains earnings accretive and contributed positively to F&N earnings in FY2020.

Q2. There was action to raise awareness against unhealthy impact of sugar laden drinks. What is actual impact on company business for past year. If possible, please share on plans going forward to mitigate this for drinks business.

• Over the last decade, diet-related issues like obesity have become a growing global concern. At F&N, we recognise these concerns and have actively reduced the sugar content of our beverages to deliver great tasting and healthier choices. We believe in the gradual recalibration of consumer's taste acceptance of reduced sweetness is the way forward. F&N's concerted effort to reduce the sugar content in our products has contributed significantly to a steady decline of our sugar footprint - over 56% reduction from 2004-2020 and has been met with very positive consumer response.
• The Group offers consumers healthier beverage options, from reduced or low sugar to no sugar. We have also expanded our range of water to include exciting options like sparkling water, which is in growing demand.
• Today, F&N provides healthier choice options in every market and in the ready-to-drink beverage category. The Group's strong market positions in key categories - isotonic, tea, liquid milk, soya, water and canned milk - in our traditional stronghold markets of Singapore, Malaysia and Thailand demonstrate not only the strength of our brands, but our ability to build on our market positions in the consumer market.
• We are confident that our efforts to drive a healthier product portfolio and engage our communities on healthy living correspond closely to evolving consumer trends and offers us further opportunities for growth. And that the breadth and depth of our portfolio will continue to appeal to the wide spectrum of the consumer market.

Q3. Company's plans to acquire land in Malaysia for dairy farm and milk production was scrapped. Did this limit company's ability to scale and is company actively looking for similar land to increase dairy farm and milk production. https://www.businesstimes.com.sg/companies-markets/perlis-ruler-sells-stake-in-fn-unit-after-land-purchase-deal-scrapped

• Last year, we announced that the Group had entered into a conditional agreement to acquire a 4,454-hectare of agricultural land in Perlis, Malaysia for a cash consideration of RM156m. In April