FGV Annual Report 2020

DELIVERING LONG TERM SUSTAINABLE GROWTH The Group has a clearly defined strategic road map to drive future growth and sustainable value creation. In 2020, the Group has rationalised its multiple businesses under two (2) key pillars, namely, Commodities and Consumer Products, to reap the benefits of potentially high margins that can be derived from value added products. To realise this, the Group is intensifying the execution of four strategic thrusts that will see the strengthening of the Group’s infrastructure, market and branding capabilities while building up its human, financial and sustainability resources. Operational Improvements Focus on improvement across all operations, maximise productivity, enhance quality and lower costs. Key initiatives under this thrust include estates Good Agricultural Practices (GAP), quality replanting, mills rationalisation and crop recovery. Product & Market Penetration Stress on maximising value along palm, sugar and logistics value chain through initiatives such as venturing into higher margin downstream products, specialised sugar and logistics diversification. We are also expanding our regional and international presence in various markets. Financial & Capability Building Embodies initiatives to improve financial position and human capital capabilities to drive our businesses forward, such as better financial management as well as turnaround of non-performing businesses. We are to rightsize the workforce, improve the rewards system and build the right capabilities. New Growth Areas Emphasise on identification of new and synergistic growth areas to generate our long term performance. These include acquisition of new landbank to enhance our land portfolio, animal feed and livestock and creating values for palm by-products commercialisation. KEY STRATEGIC TRUSTS As a responsible business, FGV has embedded robust corporate governance, sustainable and responsible practices to ensure all of our businesses are committed towards delivering value to all stakeholders, communities, and the environment that we operate in. FGV ’ s Presence Across the Value Cha i n Vision & MISSION wide range of products & high value add business activities Infrastructure for market access, branding and innovation World’s Leading Integrated & Sustainable Agribusiness Player COMMODITIES Producer of Sustainable Palm Products, Animal Feed and Rubber Logistics & Transportation Trading & Distribution Centre Ports & Tank Farm Infrastructure Brand Builders & Market Penetrators Technology, R&D and Product Development High-value/ Margin Crops and Dairy Products Renewable Energy & By products Premium Sugar Producer Branded Consumer Products FMCG Branded Consumer Products FMCG Plantation Cash Crops & Dairy Renewables Sugar Food Non-Food CONSUMER PRODUCTS Operational Improvement Market & Products Penetration New Growth Area Financial & Capability Building Human Capital Financial Sustainability Strategic Thrusts Key Enablers 59 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders