FGV Annual Report 2020

6.02 8.42 8.82 5.72 8.22 8.47 FY2019 FY2019 FY2019 FY2020 FY2020 FY2020 Transport Volume (mil MT) Storage Volume (mil MT) Storage Tank Turnover Rate (Times) Operational Performance There was a 5% decrease in total transport volume that was recorded at 5.72 million MT in 2020 (2019: 6.02 million MT). The decrease was due to lower transport volume carried for CPO, Palm Kernel, PKE, EFB and FFB. The decrease in total storage volume recorded in 2020 was due to the 11% decline in storage volume handled in Q1 2020 due to the COVID-19 outbreak that caused port closures in major importing countries. Storage volume declined accordingly by 2% to 8.22 million MT (2019: 8.42 million MT). The lower storage tank turnover rate was due to lower storage volume handled in 2020 compared to 2019. New growth areas In line with our strategic roadmap, the LO Business has made inroads with third-party logistics (3PL) services by leveraging on our new curtain siders and in-house developed Warehouse Management System (WMS). LO is building up a mixed-portfolio of customers from various industries such as Oil & Gas, Ports, Telecommunications, Energy, Defence, Automotive and Fast Moving Consumer Product (FMCG) to strengthen our business position. The surge in digital economy during COVID-19 has accelerated our focus on e-Commerce businesses namely in Kedai FGV, Felda Travel Store and FGV Transport last-mile delivery. OUTLOOK and PROSPECTS • Enhance strategic partnership and potential M&A in transportation and bulking businesses • Expand third-party logistics (3PL) to external customers • Establish a cold chain logistics division • Enhance in-house Warehouse Management System (WMS) • Maximise liquid bulk and cargo trucks utilisation by securing more external businesses • Further expand edible/non-edible oil storage capacity in Tanjung Langsat Port, Johor • Diversify products and service offerings for all businesses within LO 75 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders