DUTCH LADYS COMPANY BACKGROUND.

Dutch Lady Milk Industries Berhad ( Dutch Lady Malaysia) is a manufacturer of dairy
products in Malaysia since the 1950s. It was previously under Royal Friesland Foods, a
Netherlands-based multinational cooperative that dates back to 1879. Dutch Lady Malaysia is
currently a subsidiary of Friesland Campina, which was formed in December 2008 as a result of
the merger between Friesland Foods and Campina.
Dutch Lady Malaysia was incorporated on 28 May 1963 as a private joint-stock limited
company called Pacific Milk Industries (Malaya) Sdn Bhd. It started with the production of a
single product sweetened condensed milk and has since expanded to a full range of dairy
products locally manufactured in its factory located in Petaling Jaya. Its current products include
growing up milk, UHT milk, pasteurised milk, sterilised milk, family powdered milk, low fat and
0% fat drinking yoghurt, and low fat yoghurt. Some of its products are also distributed to
surrounding countries in Asia and Oceania.
Dutch Lady Malaysia started as Pacific Milk Industries (Malaya) Sdn Bhd in 1963 where it
was commissioned to produce sweetened condensed milk in its Petaling Jaya factory. It was
Friesland Foods first production facility based outside of the Netherlands.
Five years later on 24 September 1968, Pacific Milk Industries (Malaya) became the first
milk company in Malaysia to be listed on the stock exchange of Kuala Lumpur and Singapore.
The company changed its name to Dutch Baby Milk Industries (Malaya) Berhad in 1975, and
again in year 2000 to what it is known now Dutch Lady Milk Industries Berhad.
The Company continued to progressively manufacture and introduce new products into the
Malaysian market sterilised milk were locally produced and sold in plastic bottles in 1983,
production of chilled milk products started in 1986, and fruit yoghurt and growing up milk were
introduced into the market in 1988. Dutch Lady Malaysia was the first company in the world to
introduce growing up milk products for children up to six years old.

The Dutch Lady Malaysia Corporate team is made out of a Board of Director, and a Management
Team. The current executive and non-executive directors are:

Dato Zainal Abidin Putih, Chairman, Independent Non-Executive Director

Dato Dr. Mohd Nordin bin Mohd Nor, Non-Independent Non-Executive Director

Boey Tak Kong, Independent Non-Executive Director

Saw Chooi Lee, Managing Director

Foo Swee Leng, Independent Non-Executive Director

Freek Rijna, Non Independent Non-Executive Director

Dutch Lady Malaysias Management Team is a sub-entity from the Board of Directors and is led
by the Managing Director Saw Chooi Lee. The current members of the executive board include:

Saw Chooi Lee (Managing Director)

Ivo Ogink (Finance Director)

Surasak Jintananarumit (Sales Director)

Anja Henze ( Marketing Director)

Kallickal Rajasekharan Pillai, R. (Rajesh)(Operations Director)

Mahadevan Sivaramakrishnan (Human Resources Director)

i.)Creditors perspective: Liquidity and Leverage

Liquidity ratio
Current ratio= Current assets
Current liabilities
2008 = 223, 976
------------127, 089
=1.76

2009 = 193, 784

-------------96, 855
=2.00

2010 = 234, 244

-------------106, 261

=2.2

2011 = 324, 466

------------135, 309
=2.40

2012 = 308, 510

------------161, 786
=1.91

Quick ratio = current assets inventories

Current liabilities
2008 = 232, 976 - 74, 902
-------------------------127, 089
= 1.17

2009 = 193, 784 57, 552

------------------------96, 855
=1.41

2010 = 234, 244 72, 722

------------------------106, 261
= 1.52

2011 = 324, 466 93, 448

------------------------135, 309
=1.71

2012 = 308, 510 86, 781

-----------------------161, 786
=1.37

Leverage ratio
Debt ratio = total debt
Total asset
2008 = 129 ,389
------------290, 974

= 0.445 or 44.47 %
2009 = 101, 005
------------280, 990
=0.36 or 35.95 %
2010 = 110, 018
-----------307, 490
= 0.358 or 35.78 %
2011 = 139, 360
------------398, 514
= 0.35 or 34.97 %
2012 = 166, 640
------------382,774
= 0.435 or 43.53 %

ii.)Investors perspective: Profitability and market

Profitability ratio
Operating profit margin = operating profit
Sales
2008 = 58, 154
-----------711, 567
= 0.082 or 8.17 %
2009 = 82, 031
---------691, 847
= 0.119 or 11.86 %
2010 = 89, 221
---------710, 588
= 0.126 or 12.56 %
2011 = 139, 368
-----------810, 647
= 0.172 or 17.19
2012 = 162, 607
----------882, 179
= 0.184 or 18.43 %

Return on equity (ROE) =

net income
Total common equity

2008 = 42, 647

----------161, 585
= 0.264 or 26.39 %
2009 = 60, 400
----------179, 985
=
2010 = 63, 887
----------197, 472
= 0.323 or 32.35 %
2011 = 108, 082
-----------259, 154
=0.417 or 41.71 %
2012 = 123, 380
----------216, 134
= 0.571 or 57.08 %

0.336

or

33.56%

Operating return on asset = operating profit

Total assets
2008 = 58, 154
--------290, 974
=0.20 or 19.99 %
2009 = 82, 031
----------280, 990
= 0.292 or 29.20 %
2010 = 89, 221
---------307, 490
= 0.29 or 29.02 %
2011 = 139, 368
------------398, 514
=0.35 or 34.98 %
2012 = 162, 607
----------382, 774
= 0.423 or 42.48 %

iii.) Managements perspective: Efficiency

Average collection period =

Account receivable
Annual credit sale/365

2008 = 115, 774

------------1.95
= 59.37 days
2009 = 89, 031
----------1895.47
= 46.97 days
2010 = 75, 176
----------1946.82
= 38.61 days
2011 = 36, 714
----------2220.95
= 16. 53 days
2012 = 16, 176
-----------2416.93
= 6.70 days

Inventory turnover = cost of goods sold

Inventory
2008 = 526, 711
------------74, 902
= 7.032%
2009 = 462, 510
-----------57, 552
= 8.036 %
2010 = 447, 961
----------72, 722
= 6.16 %
2011 = 506, 175
-----------93, 448
= 5.417%
2012 = 535, 475
-----------86, 781
= 6.17 %

Total asset turnover =

sales
Total asset

2008 = 711, 567

-----------290, 974
= 2.45

2009 = 691, 847

----------280, 990
= 2.46

2010 = 710, 588

-----------307, 490
= 2.31

2011 = 810, 647

------------398, 514
= 2.03

2012 = 882, 179

----------

382, 774
= 2.30

Fixed asset turnover =

sales
Net fixed asset

2008 = 66, 998

----------711, 567
= 0.09

2009 = 87, 206

---------691, 847
= 0.13

2010 = 73, 246

---------710, 588
= 0.10

2011 = 74, 048

----------810, 647
= 0.09

2012 = 74, 264

----------882, 179
= 0.08

Time interest earned = Operating profits

Interest expense
2008 = 58, 154
---------296
= 196.46

2009 = 82,031
--------1
= 82.031

2010 = 2011 = 139,368

-----------919
= 151.65

2012 = 162, 607

----------2862
= 56.82

Ratio
Liquidity and Leverage
Current ratio

2008

2009

2010

2011

2012

1.76

2,00

2.2

2.40

1.17

1.41

1.52

1.71

1.91
Acid-test ratio
1.37
Debt ratio

0.445

0.36

0.358

0.35

0.435

Operating profit margin

0.082

0.119

0.126

0.172

0.184

Return on equity (ROE)

0.264

0.336

0.323

0.417

0.571

Operating return on asset

0.20

0.292

0.29

0.35

0.423

Profitability and market

Efficiency
Average collection period (D)

59.37

46.97

38.61

16.53

6.7

Inventory turnover
Total asset turnover (

7.032%

8.036%

6.16 %

5.417%

6.17%

2.4

2.46

2.31

2.03

0.09

0.13

0.10

0.09

2.30
Fixed asset turnover (
0.08
Time interest earned (
56.82

196.46

82.03

151.65