FGV Annual Report 2020

FGV has completed the second year of the Business Plan. What is the progress so far? Our FGV transformation plan is to take the Group beyond what it has been doing. It does not mean moving away from the plantation business but more of moving away from overdependence on commodities that are subject to price volatility beyond our control. Business Plan is our strategic road map to address present challenges of FGV and to chart the future direction of the Group. Its primary objective is to maximise value for our traditional businesses and create new value for sustainable growth. Q 3 In Conversation with Group Chief Executive Officer REALISING OUR BUSINESS POTENTIAL FULLY Business Plan is guided by four strategic thrusts to create value and sustainable growth. Pos i t i on i ng For Value Creat i on & Sus ta i nabl e Growth Strategic Thrusts Consolidate : Rationalisation, Rehabilitation, Increased Utilisation Factor, Intercropping & Monocropping Serve Larger Market & Improve Product Offerings in Food, Sugar, Agri-Products, Rubber Products, Animal Feed Integrated Farming (Animal Feed, Cash Crops, Dairy & Livestock, Paddy & Rice, e-Commerce), Renewables, Logistics Cold Chain and Warehousing Consumer Products and Fast-Moving Consumer Goods (FMCG), Logistics e-Commerce, Expand Trading Presence Improvement : Maximise Contributions from Renewables, Mechanisation, Replanting Strengthen : Cost Optimisation, Precision Agriculture, Regulatory & Compliance Optimise B20 & B7 Biodiesel Specialty Oleochemicals Synergistic Collaborations, Mergers & Acquisitions, Penetrate Key markets, eg India Leverage our Assets to Diversify Into New Business Areas & Products Diversification 2019 OPERATIONAL IMPROVEMENT PRODUCT & MARKET PENETRATION NEW GROWTH AREAS 2020 2021 2022 Strengthen JV Terms, Pay-Per-Use strategy, Tighten Procurement, Enhance Sustainability Efforts & Certification Right Sizing & Right Fitting, Build Organisational Capability, Evaluate & Reward Right & Management Information System FINANCIAL & CAPABILITY BUILDING “Stop the Decline” “Sustain Performance” “Grow Effectively” “Expand Selectively” Thus far, we have implemented 61 initiatives to realise the following goals and subsequently monitor the performance of each of these initiatives regularly or on the quarterly basis. Better resource utilisation to generate higher returns. Portfolio enhancement to balance structural efficiencies. Value maximisation through an integrated value chain. Commercially driven and accountable business decision making. Optimising human capital potential in driving growth. 40 FGV HOLDINGS BERHAD Annual Integrated Report 2020