FGV HOLDINGS BERHAD | ANNUAL INTEGRATED REPORT 2023 31 BUSINESS STRATEGY In executing our BP26 strategy, we aim to enhance performance across the four Key Focus Areas: While acknowledging the ongoing challenges, we are actively addressing them with a positive and proactive approach. Despite market volatility, fluctuating Crude Palm Oil (CPO) prices, and decreasing Fresh Fruit Brunch (FFB) yield, we are implementing strategic measures to safeguard our financial stability. These include optimising operational efficiencies and initiating cost-saving initiatives. Rising production and operational costs, driven by factors such as increased raw material prices, higher energy, and labour expenses, are being carefully managed through streamlined processes and resource allocation. Moreover, our commitment to sustainability is evident as we aim to mitigate risks and strengthen our position in the market. Amidst fierce competition from local and regional brands, we strategically leverage our strengths to differentiate ourselves and maintain a competitive edge. Through innovation, strategic partnerships, and a customer-centric approach, we navigate these challenges with cautious optimism, recognising the journey ahead as we emerge resilient and adaptable in the marketplace. More information on how the business navigating its challenges can be found in Group Business Review on pages 49 to 77. KEY FOCUS AREAS Our strategy focuses on deepening our presence in existing markets while identifying and capitalising on new opportunities. This includes: • Implementing food strategy • Forging partnerships with established organisations • Establishing more bases overseas • Developing our people to be global • Strengthen FGV brand • Optimising supply chain Market Strengthening & Penetration • Promoting operational excellence and digitalisation • Enhancing process efficiency and optimising assets • Adopting technology and modernising operations • Cultivating culture of innovation and sustainability Operational Excellence & Digitalisation Embedding Sustainability • Environment: Drive climate action, reduce carbon emission, and support renewable energy initiatives • Social: Implement WRO Remediation Plan and promote DEI across the Group • Governance: Enhance certifications, rankings, and transparency within the supply chain Financial Management & Cost Optimisation • Rationalise assets • Optimise capital structure • Implement turnaround plans for underperforming assets • Utilise assets and make responsible investment
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