FGV Annual Report 2020

Group Financial Position The Group’s total assets in 2020 stood at RM17.2 billion, a reduction of 2.9% from RM17.7 billion in 2019. This was attributed to decrease in property, plant andequipmentmainly due to impairment loss in Asian Plantations Limited amounting to RM137.4 million and impairment loss on rubber plantations amounting to RM40.8 million. Following the discontinuation of rubber plantation in Chuping, Perlis, the Group recognised impairment loss and bearer plant written-off amounting to RM62.9 million in Sugar Business. However, the decrease was partially offset by increase in receivables and improvement in cash by 16.3% and 6.9% respectively. Total liabilities decreased by 4.5%fromRM11.6 billion to RM11.1 billion in 2020 attributed to decrease in borrowings and lower payables. As a result, net current asset improved to RM295.4 million from RM13.4 million in 2019. Total equity for the Group in 2020 stood at RM6.1 billion, similar to 2019. STATEMENT OF CASH FLOW The Group’s total cash balance as at 31 December 2020 increased by 6.9% to RM1.73 billion (2019: RM1.62 billion). The improved cash flow was due to improved working capital management and proceeds from divestment during the year. DIVIDEND In line with the improved financial performance for the financial year ended 31 December 2020, a final dividend of 3 sen per share amounted to RM109.4 million was paid on 31 March 2021. key financial indicatorS For the year 2020, there was an improvement in earnings per share of 4 sen against negative 6.7 sen reported in 2019. Net assets per share rose to RM1.17 from RM1.14 while shareholders’ fund stood at RM4.26 billion compared to RM4.17 billion in 2019. The gearing ratio fell to 1.39 times compared to 1.51 times in 2019. The Group’s liquidity ratio also increased from 1.00 times to 1.07 times. OUTLOOK For 2021, the Group remains cautiously optimistic of the Group’s financial performance. It expects CPO prices to remain above RM2,500, but wary of the challenges arising from the shortage of plantation workers for upstream activities. The Sugar Business is showing signs of recovery, and we will continue to focus on strategies to improve the operational efficiency and financial performance of this business. For our Logistics & Others Business, we expect better performance, especially when movement restrictions and lockdowns are completely lifted. Overall, the Group is continuing its efforts to deliver better results operationally and financially to create more value for our shareholders. These include initiatives that deliver sustained results for the benefit of all stakeholders. From left (standing) : • Hasnul Fadil Al Hadi Kharis – Manager (M), Logistics & Support Business (LSB) Sector • Mohd Izam Pariz Zamri – Vice President (VP) / Group Accountant (GA), LSB Sector • Siti Azrina Abdul Razak – SM, Group Budgeting • Shahril Ibrahim – VP / GA, Plantation Sector (PS) • Mohammad Asraf Nordin – M, PS From left (sitting) : • Rahayu Alias – Upstream, General Manager (GM) / GA • Sumarni Zubir – GM Group Statutory Reporting & Consolidation • Aznur Kama Azmir – Senior VP / Group Financial Controller • Dato’ Mohd Hairul Abdul Hamid - Group Chief Financial Officer • Haslinda Abdul Rahim – Senior GM / GA, Finance Policy & Governance (FPG) • Syakima Nur Sabri – M, FPG 49 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders