FGV Annual Report 2020

Group Strategy & Business Plan Review Better resource utilisation to generate higher returns Portfolio enhancements to balance structural inefficiencies Value maximisation through an integrated business value chain Commercially driven and accountable business decision making Optimisation of human capital to drive growth FGV Group’s Strategy takes a long term end-in-mind approach with the aim to elevate FGV’s value proposition and ultimately become an internationally renowned integrated and sustainable agribusiness player. Thus, the Group established two new businesses under its belt to achieve its objectives. In addition to the existing three businesses, namely Plantation, Sugar, and Logistics & Others, FGV has now included Integrated Farming, and Consumer Products as well. The business activities involved under the two new businesses are in fact not entirely new to FGV. However, we will see greater efforts being made on these businesses to enable FGV to bring its business activities towards higher and more sustainable profits and returns. Integrated Farming will allow FGV to have the option to optimise the Group’s returns for every hectare of land under its belt and have selective exposure throughout the whole value chain of different types of cash crop various besides palm oil. Consumer Products on the other hand will function as product consolidator, where it will sell various food and non-food products produced by FGV Agro Farmers as well as contract manufacturers. These consumer products will ultimately be sold under FGV’s own consumer brands. Strong emphasis will be given towards building brand equity and developing high quality products that are accepted worldwide across different cultures and lifestyles. As for the medium term horizon, the Group’s Business Plan captures all of the Group’s key strategic initiatives (KSI) that need to be undertaken by each business for the Group to meet its financial and operational targets in the next three (3) years and beyond. The ultimate aim is to be able to realise FGV’s end-in-mind in the long run. The Group’s Business Plan has been developed based on the following guiding principles: 58 FGV HOLDINGS BERHAD Annual Integrated Report 2020