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JAYA TIASA HOLDINGS BERHAD
(3751-V)
I
annual report 2012
16
CHAIRMAN’S STATEMENT
CORPORATE DEVELOPMENTS
On 22 March 2012, we proposed the placement of new ordinary shares of RM1.00 each in Jaya Tiasa Holdings Berhad,
representing up to 15% of the issued and paid-up share capital, and proposed bonus issue of new JTH shares on the basis
of 2 bonus shares for every 1 share held after the Proposed Placement. The share placement was completed on 20 July 2012
with the placement of 42,044,100 shares at RM7.90 per share raising a net sum of RM326 million and the share capital was
subsequently enlarged to 973,717,797 shares after the bonus issue.
The strategy to switch from the previous debt fnancing to equity fnancing for capital expenditure and working capital requirement
was made with the view to strengthen our balance sheet by reducing our gearing and improve the liquidity of the company’s
shares traded on Bursa. The proceeds to be raised will be used to pare down the short-term borrowings of the Group and
to fnance the construction of three new CPO mills at an estimated total cost of RM235 million. In addition, the repayment of
some of our Group’s existing short-term borrowings will give rise to interest cost savings.
GOING FORWARD
Although the global economy had stumbled into a rough patch in the 2Q12 and there are mounting concerns on its repercussions
on Asia, its gradual recovery will hopefully not be derailed after the 28-29 European Union summit yielded encouraging measures
to help resolving the euro-debt crisis. Despite the impact of slowing economies of Europe and US on Asia, exports to our key
markets remained intact and we expect this to be maintained in the coming years.
Prices of plywood and logs are expected to remain frm in view of the potentially restricted supply of logs, still robust demand
from India and China and anticipated higher demand for wood materials from Japan to meet reconstruction needs following
the recent disasters. With the upward trend in wood demand and prices, we are optimistic that FY2013 will be a proftable
year for the timber segment.
The overall fundamentals of the oil palm industry remains bullish arising from a continuing strong demand for palm products
from emerging markets like China, India, Indonesia and Pakistan. Our palm oil trees have a young age profle consequently the
increasing FFB yield and OER should ensure contribution from this segment to be on uptrend for many years to come.
While challenges lie ahead as we enter FY2013, the Group has exhibited enduring strength and will continue to closely monitor
market developments, assess the risks in all operational and fnancial matters, and implement measures to mitigate any possible
negative impact in order to ensure substantial returns for our shareholders.
APPRECIATION
On behalf of the Board, I wish to thank my fellow Board members for their astute insights and wise counsel throughout the
year. I am also very grateful to our customers, business associates, the regulatory authorities, fnanciers and members of the
community for their unwavering support in the midst of these turbulent times and certainly look forward to their continued
confdence in our organisation. The year’s excellent performance is undoubtedly owing to the remarkable commitment and
sacrifces of our dedicated management team and employees and we are deeply indebted to them. Last but not least, I would
like to thank you, our valued shareholders, for the trust and confdence in us, and for your investment in Jaya Tiasa. We look
forward to your continued support as we build upon the good momentum we have gained.
GEN (RTD) TAN SRI ABDUL RAHMAN BIN ABDUL HAMID
Chairman