ANNUAL INTEGRATED REPORT 2024
Our Reporting Approach COVER RATIONALE The 2024 theme, ‘Harnessing Potential’, reflects the power of agriculture in driving growth, uplifting communities, and safeguarding the environment. It highlights FGV’s commitment to innovation, inclusivity, and long-term value creation, empowering people, and supporting national development through a resilient agri-food eco-system. The cover design emphasises the strength derived from unity and collaboration. It showcases a diverse workforce, whose collective presence highlights the human element behind FGV’s success. This also underscores the importance of teamwork in achieving shared goals. The dynamic interplay of visuals, including Plantation, Oils & Fats, Sugar, Logistics & Support, and Consumer Products, seamlessly blends the various facets of FGV’s operations. Together, these elements capture the essence of FGV’s journey and vision. The design presents a compelling visual narrative of resilience and progress as the Group continues to strive to reach its full potential. Tel: 03-2789 0000 Email: fgv.investors@fgvholdings.com We welcome inquiries, comments, and feedback to help us enhance our reporting. Please contact us via: OUR REPORTING SUITE FGV Holdings Berhad (FGV) 2024 reporting suite comprises the following: FGV’s AIR is published annually and covers the calendar year from 1 January to 31 December 2024, presenting both financial and non-financial updates. The report encompasses all operations and activities across FGV’s businesses, including its subsidiaries and joint ventures. It outlines our strategic direction, performance outcomes, and future outlook, detailing material matters, risks, and opportunities that influence our ability to create and deliver value. Additionally, it provides insights into our financial and non-financial performance, ensuring transparency and accountability in line with evolving stakeholder expectations. The Sustainability Review forms part of this report, covering FGV’s business operations, subsidiaries, and headquarters in Malaysia. The scope excludes subsidiaries, joint ventures, and associates outside Malaysia. REPORTING PERIOD, SCOPE, AND BOUNDARIES This report has been prepared in alignment with the following standards, guidelines, and industry best practices: Main Market Listing Requirements, Bursa Malaysia Securities Berhad (MMLR) Malaysian Code on Corporate Governance (MCCG) 2021, issued by Securities Commission Malaysia Integrated Reporting Framework Malaysian Financial Reporting Standards (MFRS) Companies Act 2016 Sustainability Reporting Guide (3rd Edition) 2022, Bursa Securities Global Reporting Initiative (GRI) Standards 2021 Task Force on Climate-related Financial Disclosures (TCFD) United Nations Sustainable Development Goals (UN SDGs) REPORTING FRAMEWORKS ANNUAL INTEGRATED REPORT 2024 The FGV Annual Integrated Report (AIR) serves as the primary source of information on the Group’s financial and non-financial performance, offering a comprehensive view of our business operations across Malaysia and beyond. It reflects our commitment to transparency, accountability, and sustainable growth by integrating key financial results with insights into our environmental, social, and governance (ESG) initiatives, strategic direction, and operational achievements. AIR AUDITED FINANCIAL STATEMENTS 2024 The FGV Audited Financial Statements (AFS) provide a detailed and audited account of the Group’s financial position and performance for the financial year. It offers stakeholders a clear and accurate understanding of our financial health, corporate governance, and regulatory compliance. AFS
We uphold the accuracy, consistency, and transparency of this report through rigorous oversight. The Reporting Committee ensures alignment with the Integrated Reporting Framework, while the Audit Committee and the Board review and approve this report together with the AFS. Our AFS underwent a comprehensive assurance review, and the Statement on Risk Management and Internal Control was subject to a limited assurance review by appointed external auditors. As part of our ongoing commitment to transparency and accountability, an independent third party conducted a limited assurance on selected sustainability indicators for 2024. This was performed in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information, as detailed on page 252 to 255 of this report. REPORTING INTEGRITY & ASSURANCE This AIR contains forward-looking statements relating to our plans, strategies, and performance expectations. These statements are subject to risks, uncertainties, and assumptions, and do not guarantee future results. Actual outcomes may differ materially from those projected. FGV makes no representation or warranty regarding the achievement of any targeted results and assumes no obligation to update these statements or any historical information. FORWARD-LOOKING STATEMENTS Tan Sri Rastam Mohd Isa Chairman FGV Holdings Berhad Fakhrunniam Othman Group Chief Executive Officer FGV Holdings Berhad The Board of Directors of FGV is responsible for ensuring the integrity and accuracy of FGV’s AIR 2024. To the best of our knowledge, this report provides a comprehensive overview of the material issues relevant to our business and stakeholders, offering a balanced and fair assessment of FGV’s financial and non-financial performance for the reporting period. STATEMENT FROM THE BOARD OF DIRECTORS HOW TO READ THIS REPORT This report features the following icons to highlight the linkages between key elements of our business. STRATEGIC THRUST Financial & Capability Building Product & Market Penetration Operational Improvement New Growth Areas STAKEHOLDERS FELDA Customers FELDA Settlers Field Workers Non-Governmental Organisations Regulators & Government Joint Venture & Business Partners Suppliers Investors & Capital Providers Board of Directors and Employees Media Online Access – This icon indicates that additional information is available on our website. Please visit the provided link for further details. In This Report – This icon directs you to the relevant sections of the report, where you can find more details on the topic. The materiality reporting is shaped by key matters of interest to our stakeholders, ensuring relevance and transparency. These considerations play a crucial role in driving value creation by addressing both current and emerging risks and opportunities. They are identified through stakeholder engagement and internal assessments, reflecting factors that influence FGV’s long-term growth and sustainability. MATERIALITY & MATERIAL MATTERS Further information can be found in Material Matters on pages 49 to 54. CAPITALS Financial Capital Intellectual Capital Natural Capital Human Capital Manufactured Capital Social & Relationship Capital KEY RISKS IT Information Technology Risk TR Trading Risk SR Sustainability Risk OR Operational Risk LR Legal & Regulatory Risk MATERIAL MATTERS BD Business Development and Product Quality TR Traceability, Responsible Sourcing and Supply Chain Management EI Economic Impact Economics Growth AC Anti-Corruption and Anti-Bribery RE Regulatory Compliance and Sustainability Certifications DS Data Security and Protection CG Corporate Governance and Risk Management Governance CD Community Development DI Diversity, Equity and Inclusion (DEI) TD Talent Development SM Smallholders HL Human Rights and Labour Standards OH Occupational Health and Safety Social BL Biodiversity and Land Management CL Climate Action EN Energy Management SO Soil, Pest and Disease Management WM Waste Management WU Water Use Environment OE Operational Excellence Innovation & Technology
WHAT’S INSIDE SECTION 1: OUR REPORTING APPROACH SECTION 2: FGV AT A GLANCE 4 Who We Are 6 What We Do: Core Business Segments & Key Highlights 8 Our Competitive Edge 9 How We Are Structured 10 Our Global Footprint 12 Our Investment Case 12 Financial Highlights 12 Business Highlights 14 Awards and Recognitions 15 Our Strategic Goals and Pillars 16 Optimising Our Value Chain 18 Events and Milestones SECTION 3: INSIGHTS FROM OUR LEADERS 20 Message from the Chairman 26 Group Chief Executive Officer’s Review SECTION 4: COMMITMENT TO STAKEHOLDER VALUE CREATION 32 Our Integrated Approach to Value Creation 33 Our Value Creation Model 36 Stakeholder Engagement & Value Creation 48 Distribution of Value Created 49 Material Matters 55 Operating Landscape 58 Our Strategic Roadmap 60 Strategic Performance Review 64 Key Performance Indicators Scan here to access our website. www.fgvholdings.com
SECTION 5: DRIVING VALUE THROUGH BUSINESS GROWTH Financial Review 66 Group Financial Review 69 5-Year Group Financial Summary & Highlights 70 Summary Financial Statements 71 Segmental Analysis 72 Statement of Value Added and Distribution 73 Quarterly Performance 74 5-Year Operational Statistics 75 Financial Calendar 76 Investor Information Business Review 80 Plantation Division 90 Oils & Fats Division 98 Sugar Division 102 Logistics & Support Division 111 Consumer Products Division Sustainability Review 120 Our Approach to Sustainability 157 ESG Performance Data Table SECTION 6: LEADERSHIP IN FOCUS 159 Corporate Information 160 Board of Directors 162 Board of Directors’ Profile 170 Group Management Committees’ Profile 181 Organisational Structure SECTION 7: SUSTAINING VALUE THROUGH GOOD GOVERNANCE 182 Corporate Governance Overview Statement 224 Statement on Risk Management and Internal Control 232 Additional Disclosures SECTION 8: ADDITIONAL INFORMATION 243 Analysis of Shareholdings 247 Top 10 Properties of FGV 249 Global Reporting Initiative (GRI) Content Index 252 Independent Limited Assurance Report 17TH Thursday, 26 June 2025 11:00 a.m. Location: Banquet Hall 1, Level B2, Menara Felda, Platinum Park, No.11 Persiaran KLCC, 50088, Kuala Lumpur, Malaysia. Online Platform: https://investor.boardroomlimited.com ANNUAL GENERAL MEETING
Who We Are FGV is an agribusiness based in Malaysia and one of the world’s largest producers of crude palm oil (CPO), contributing approximately 3% of global and 14% of Malaysia’s CPO production. Since its listing on the Main Market of Bursa Malaysia Securities Berhad in 2012, FGV has remained committed to achieving its strategic goals and leveraging synergies to create value for its stakeholders. As a responsible organisation, we focus on fostering a culture of sustainability, ensuring long-term value creation through environmentally and socially responsible operations and growth. About Us OUR MISSION Developing and producing high-quality products sustainably, that are both good for the people and the environment Practicing a healthy and innovative working environment and culture within the Group, whilst promoting the same to our suppliers Establishing an integrated value chain business ecosystem The embodiment of governance and compliance Cultivating diversification in products and geographies OUR VISION Delivering sustainable foods and agriproducts to the world OUR PURPOSE To deliver sustainable value to shareholders and stakeholders 41% of the market share for oil palm germinated seeds 53.5% of the market share for Seri Pelangi margarine 35.4% of the market share for SAJI refined cooking oil RANKING IN MALAYSIA 60% of the market share for Gula Prai refined sugar 4 FGV Holdings Berhad | Annual Integrated Report 2024
OUR PRIDE VALUES P R I D E Partnership Integrity Respect Dynamism Enthusiasm INDICES REPRESENTATION FGV Total Workforce* 51,437 Our Presence 7 Countries MARC RATING (MALAYSIA CORPORATION BERHAD) AA-IS CERTIFICATIONS AND CREDIT RATINGS Business Operations Plantation Oils & Fats Sugar Logistics & Support Consumer Products * A s at 31 December 2024, FGV’s total workforce comprised FGV employees (including Malaysia, its overseas operations, and MSM) as well as operational labour. FELDA Kerajaan Negeri Pahang Public 82% 5% 13% Shareholding Structure Market Capitalisation RM 4.16 billion 5 FGV AT A GLANCE Sec 02
What We Do PLANTATION OILS & FATS At FGV, we are an agribusiness with an integrated value chain spanning multiple divisions. Our diverse operations include Plantation, Oils & Fats, Sugar, Logistics & Support, and Consumer Products. With a commitment to sustainability, innovation, and operational excellence, we drive value creation across our business and global markets. As the backbone of our operations, the Plantation Division manages the entire supply chain, from estates and mills to research & development (R&D), rubber, and renewable energy. This division plays a crucial role in driving efficiency and sustainability across our agricultural activities. Malaysia’s leading fertiliser manufacturer with over 700,000 MT an annual production capacity FGV Estates: 28% Third Party Smallholders: 29% FELDA Settlers: 43% Crop Sources 335,420 Ha Planted Area 78,531 Ha Unplanted Area 7,123 Ha Rubber 3,734 Ha Other Crops 324,563 Ha Oil Palm 413,951 Ha Total Landbank 100% MSPO-certified 45% RSPO-certified 66 Mills >12,000 Ha of palm oil plantations dedicated to R&D purposes 76 highly qualified researchers 24 agronomists 214 Estates Producer of Yangambi ML161 Seed The Oils & Fats Division focuses on refining and producing palm-based food ingredients, oleochemicals, and biodiesel. As a key contributor to the Group’s supply chain, this division adds value by delivering high-quality bulk commodities, edible oils, and chemical products. With a strong presence in Malaysia, Pakistan, and the United States (U.S), we maintain a robust and sustainable supply network to meet global market demands. Operates in 3 countries (Malaysia, Pakistan, and U.S) 6 Vegetable Oil Refineries 4 Kernel Crushing Plants 2 Oleochemical Plants 1 Biodiesel Plant 6 FGV Holdings Berhad | Annual Integrated Report 2024
SUGAR The Sugar Division, operated through its 51% subsidiary, MSM Malaysia Holdings Berhad (MSM), is the largest refined sugar producer in Malaysia and a significant player in the Asian market. Listed on Bursa Malaysia Securities Berhad since 2011, MSM offers a diverse range of products, including refined sugars and healthier alternatives such as sucralose and stevia mix, catering to both industrial and consumer needs. LOGISTICS & SUPPORT The Logistics & Support Division ensures seamless business operations through its services including bulking and storage, transport, information technology, and travel services. With Malaysia’s largest liquid bulking installation, the division supports core business activities with cutting-edge logistics and digital solutions. 1 million MT Liquid 0.12 million MT Dry Cargo 1.12 million MT Total Storage Capacity (including Malaysia and Pakistan) 12 Bulking Terminals >600 units Mixed Fleet Vehicles CONSUMER PRODUCTS We provide high-quality consumer food products while advancing integrated farming practices. This division supports food security and sustainability, aligning with evolving consumer preferences. 2 Refineries 2.05 million MT Sugar Refining Capacity Gula Prai Flagship Brand BRANDS 7 FGV AT A GLANCE Sec 02
Our Competitive Edge 8 FGV Holdings Berhad | Annual Integrated Report 2024 We invest in initiatives that empower smallholders, nurture local entrepreneurs, and uplift rural communities, fostering inclusive growth and long-term shared value. Our business extends beyond palm oil, with diversification into sugar, logistics, and consumer products, reducing reliance on a single commodity and fostering sustainable growth. We manage the entire supply chain, from plantations to end products, ensuring efficiency, cost control, and consistent quality. Our R&D focuses on high-yield seeds, driving innovation, and improving agricultural techniques. We uphold Good Agricultural Practices and align with both local and global certifications, including RSPO, MSPO, and ISCC, demonstrating our commitment to sustainability and responsible sourcing. 6 1 2 3 4 5 Social Enterprise and Community Development Diversified Agribusiness for Growth Integrated Value Chain Research & Development for Continuous Advancement Commitment to Sustainability and Certifications Global Scale and Market Position Our extensive landbank and high production capacity enable economies of scale, reinforcing our competitive position. Well-established consumer brands further strengthen market presence and support wider market penetration.
PLANTATION Estates & Mills OILS & FATS CONSUMER PRODUCTS Subsidiaries Joint Ventures Further information can be found in the Audited Financial Statements 2024. • FGV Refineries Sdn Bhd Research & Development • FGV R&D Sdn Bhd • FGV Fertiliser Sdn Bhd • FGV Kernel Products Sdn Bhd • FGV Biotechnologies Sdn Bhd • FGV IFFCO Sdn Bhd • Twin Rivers Technologies Holdings Inc • Mapak Edible Oil (Pvt) Ltd. • FPG Oleochemicals Sdn Bhd Rubber • FGV Rubber Industries Sdn Bhd SUGAR • MSM Malaysia Holdings Berhad • FGV Trading Sdn Bhd Bulk Commodity Edible Oils & Chemicals • FGV Plantations (Malaysia) Sdn Bhd • FGV Palm Industries Sdn Bhd • Pontian United Plantations Berhad • Asian Plantations Limited • FGV Security Services Sdn Bhd • FGV Agri Services Sdn Bhd LOGISTICS & SUPPORT Logistics • FGV Transport Services Sdn Bhd • FGV Johor Bulkers Group • F.W.Q Enterprises (Pvt) Ltd. Support • Felda Travel Sdn Bhd • FGV Prodata Systems Sdn Bhd • FGV Intergrated Farming Holdings Sdn Bhd • Delima Oil Products Sdn Bhd • FGV Dairy Farm Sdn Bhd • FGV Dairy Industries Sdn Bhd • Malaysia Pakistan Venture Sdn Bhd 9 FGV AT A GLANCE Sec 02 How We Are Structured
* A s at 31 December 2024, FGV’s total workforce comprised FGV Employees (including Malaysia, its overseas operations, and MSM) as well as operational labour. Further details on FGV’s assets are available on our website at www.fgvholdings.com. Our Global Footprint PAKISTAN SPAIN FRANCE UNITED STATES Total Sales Revenue RM1.12 billion OTHERS Total Sales Revenue RM3.21 billion Total Sales Revenue RM0.19 billion MALAYSIA Total Sales Revenue RM0.98 billion Total Sales Revenue RM15.39 billion THAILAND FGV’s TOTAL WORKFORCE* 86% 14% FGV Employees Operational Labour 16,827 33% 34,610 67% EUROPE 10 FGV Holdings Berhad | Annual Integrated Report 2024 CAMBODIA
LOCATIONS Asia Cambodia • 1 Rubber processing facility Thailand • 1 Rubber processing facility Malaysia • 214 Estates • 66 Mills • 5 Rubber processing facilities (two are located in the same location) • 3 R&D centres • 3 Seed production centres • 3 F ertiliser manufacturing plants • 5 Vegetable oil refineries (1 is JV)* • 4 Kernel crushing plants • 1 Biodiesel plant • 1 Oleochemical plant* • 2 Sugar refineries • 1 Refined sugar warehouse • 10 Bulking terminals • 10 T ransportation hub and spoke • 12 Warehouses ( located in three different locations) • 4 Transportation depots • 1 Jetty operation • 1 Hotel • 2 Collection, Processing, and Packaging Centres (CPCC) • 1 Chuping agro food valley • 6 Paddy farming • 2 Animal feed plants • 1 Fresh milk processing facility • 1 Integrated cattle dairy farm Pakistan • 1 Vegetable oil refinery* • 2 Bulking terminals* • 1 Warehouse* • 1 Jetty operation* North America United States • 1 Oleochemical plant Europe France • 1 Trading office* Spain • 1 Trading office* Business Operations • Plantation • Oils & Fats • Sugar • Logistics & Support • Consumer Products We have operations in seven countries across North America, Europe, and Asia. * Joint Venture (JV) Total Sales Revenue RM1.27 billion ASIA 11 FGV AT A GLANCE Sec 02
BUSINESS HIGHLIGHTS FINANCIAL HIGHLIGHTS Our Investment Case Introduced the electric steer power barrow to ease workers’ workload, while unmanned weighbridges at mills streamlined operations and minimised human intervention. Economic One of the first Malaysian plantation companies to produce CPKO in accordance with EUDR requirements. Launched Yangambi Platinum, a high-yielding new clonal planting material. Sold 40,000 MT of Green Gold Label-certified PKS to Japan. Completed 89% of the replanting programme (Felling: 13,196 Ha / Planting: 18,543 Ha). Installed 26 units of Automated Tank Gauging systems at bulking facilities for real-time monitoring. Granted the rights to commercialise the enhanced variety of fragrant rice, MRQ111, developed by MARDI. Revenue (2023: RM19,359 million) RM22,158 million Profit After Tax and Minority Interest (2023: RM102 million) RM276 million Earnings per Share (2023: 2.8 sen) 7.6 sen Dividend per Share (2023: 3.0 sen) 5.0 sen Launched the new Fract750 Refinery Plant at Kuantan Port for premium products. Completed 10 new tanks with a total capacity of 24,000 MT for renewable feedstocks. Awarded a project to develop, implement, and maintain the MyInvois system for LHDN. 12 FGV Holdings Berhad | Annual Integrated Report 2024
Launched 23 new Stock Keeping Units in the market • Yoghurt Drinks: Yuzu, Strawberry, and Fruit Punch flavours. • UHT Milk: Strawberry and Chocolate flavours. • Malt Powder in Chocolate flavour. • SAJI Sup Bunjut with three variations: Sup Bunjut Ayam, Sup Bunjut Tulang, and Sup Bunjut. • SAJI Paste with two variations: Pes Sup Siam and Pes Sup Tomyam. • SAJI Kerisik. • PREMEO Blended Vegetable Oil in two variations: Palm & Sunflower Oil and Palm & Canola Oil. Environmental & Social Governance Submitted near-term and long-term GHG reduction targets to SBTi for validation. A total of 5,500 trees, including indigenous and wild fruit species, have been planted at FGV estates in Perak and Kelantan. Launched “Projek Rintis: Plantation Technician (Harvesting Specialist)”, a structured programme to train 60 local youth. Established the Gender Diversity in Top & Key Management Policy. Submitted a petition to the U.S CBP for WRO modification. Launched the Enhanced Sustainability Framework. Invested RM126.73 million in improving infrastructure and sustainability initiatives for migrant workers. Reimbursed RM5.54 million in recruitment fees to 1,164 former migrant workers. Ranked 20th globally and 6th among Malaysian plantation companies in the 2024 SPOTT assessment, with a score of 83.4%. 13 FGV AT A GLANCE Sec 02
1 Gold Award for AIR 2022 at the Australasian Reporting Awards (ARA). 1 Silver Award for AIR 2022 at the ARA. 1 Best Employer Award from the Human Resource Development Corporation. 2 Overall Excellence Award (Ranked 19th) at the National Corporate Governance and Sustainability Awards (NACGSA) 2024. 1 Platinum Award for SAJI in the Cooking Oil category by Reader’s Digest. 2 Kancil Award SAJI’s “Perajurit Dapur” campaign, focusing on consumer appreciation and community building. 1 Special Award in the Energy Management Gold Standard (EMGS) programme. 1 Earned 63 awards across the Group, with standout achievements at the Malaysian Society for Occupational Safety and Health (MSOSH) Awards 2024. 1 Multiple Awards at the Anugerah Industri Sawit Malaysia 2023/2024: • FGV Kernel Products Sdn Bhd: Palm Kernel Crushing Plant Category, Own Palm Kernel Supply. • FGV Palm Industries Sdn Bhd: Palm Oil Mill Category, External FFB Supply. 1 Silver Award for Employer of Choice & Best CSR at the 24th Malaysia International Human Resource Awards (MIHRA) 2024. 2 Multiple Awards for MiSHA Excellence under the following categories: • Gold Award (Emergency Response). • Gold Award (Chemical Category OSH Principle of Prevention (OSHPoP)). • Gold Award (Risk Management in Agriculture/Forestry/Fishing Sector). 2 K incentric Malaysia’s Best Employer Award 2023. 2 Platinum Award for Best Annual Report in Bahasa Malaysia and Silver Excellence Award for Companies with Less than RM2 billion Market Capitalisation at NACRA 2024. 3 Bronze Award for Asia’s Best Integrated Report (CEO Message category) at the Asia Integrated Reporting Awards (AIRA) 2023. 2 Gold Award for Best Annual Report in Bahasa Malaysia at the National Annual Corporate Reporting Awards (NACRA) 2024. FGV: MSM: ANNUAL REPORT AWARD MSM: MSM: FGV: FGV: HUMAN CAPITAL SUSTAINABILITY CONSUMER PRODUCTS SAFETY PLANTATION AWARDS AND RECOGNITIONS 14 FGV Holdings Berhad | Annual Integrated Report 2024 Our Investment Case
Operational Improvement Product & Market Penetration New Growth Areas Financial & Capability Building Strategic Thrusts Vision Strategic Enablers “Delivering Sustainable Foods and Agriproducts to the World” Human Capital Financial Sustainability 15 FGV AT A GLANCE Sec 02 Our Strategic Goals and Pillars
Optimising Our Value Chain R&D ESTATES OIL PALM MILLS Product & Services • Seed and seedling production • Fertiliser • Crop protection By-products • EFB, PKS, Sludge oil, Compost, Biogas, POME Rubber Other Crops BULKING 16 FGV Holdings Berhad | Annual Integrated Report 2024
CRUSHER NON-FOOD • Oleochemical • Biodiesel (PME, Glycerine, PFAD) • Animal Feed (PKP, PKC) INTEGRATED FARMING • Paddy • Fresh Produce • Dairy • Animal Feed • Cooking oil • Margarine • Shortening • Dough • Fat • Ghee/Vanaspati • Refined sugar • Sugar sucralose • Stevia mix CPO FOOD SUGAR REFINERY PK REFINERY TRADING OF CPO & PPO TRANSPORT WAREHOUSE 17 FGV AT A GLANCE Sec 02 • Paddy • Fresh Produce • Dairy • Animal Feed
Gulfood Dubai 2024 – Launched SAJI Creamers, expanding into the MENA region with innovative F&B solutions. Launch of ‘FGV Bersedia’ – FGV debuted its official song, symbolising unity, resilience, and its global mission. 22 JAN 26 JAN 19 FEB 4 MAR 20 JUNE 21 JUNE International Women’s Day – Celebrated women employees with talks, health booths, and a leadership forum. 18 MAR Pesona Raya – Engaged nearly 100 orphans with performances and donations, reinforcing FGV’s commitment to Corporate Social Responsibility (CSR). 23 APR Port Qasim Visit – Strengthened Pakistan partnership, showcasing FGV’s contributions to the edible oil supply chain and sustainability. POC 2024 – Participated as a Titanium Sponsor, reinforcing FGV’s leadership in the palm oil industry and highlighting inclusivity and sustainability. 17 MAY Hajj Pilgrim Programme – Guided pilgrims on rituals and practices through sessions by Felda Travel. 9 MAY FELT Leadership Programme – Focused on environmental and safety initiatives, launching ENR Green Tyre, a wildlife campaign, and Muzium Lori. 16th AGM – Approved nine resolutions, declared a dividend of RM109.44 million, and shared key updates on sustainability, governance, and operations. Fortune Southeast Asia 500 – Recognised as one of the region’s top companies for influence and leadership. Events and Milestones 18 FGV Holdings Berhad | Annual Integrated Report 2024
13 JUL 14 JUL 2 SEP 11 OCT 8 OCT 12 JUL 12 NOV PPPTR’s 55th Anniversary – Marked 55 years of palm oil research, featuring eco-friendly practices, and GAP-certified clonal seeds innovations. Launch of KedaiFGV.com – Officiated by the Prime Minister, the platform supports Malaysia’s food security agenda. 17 OCT FGV Johor Bulkers’ 50th Anniversary – Celebrated five decades of excellence under ‘Storing Sustainably’, reaffirming innovation, and responsible operations. FGV Festival: FELDA Settlers’ Day – Held at MAEPS, this inaugural festival showcased FGV’s brands and activities under the theme “Melahirkan Masa Depan Lestari.” 50th ASEAN-Japan Business Meeting – FGV’s Group Chief Strategy Officer advocated for climate-resilient crops and global collaboration for food security. #FGVPinkRun – Over 200 employees participated in a 5km run, Zumba, and lucky draw to support breast cancer awareness. Updated Sustainability Framework – Strengthened five key pillars: Economic Growth, Governance, Social, Environment, and Innovation & Technology. Downstream Facilities Visit – Deputy Minister commended FGV’s contributions to Malaysia’s palm oil sector during a visit to Pasir Gudang operations. 19 FGV AT A GLANCE Sec 02
Message from the Chairman TAN SRI RASTAM MOHD ISA Chairman 20
Dear Shareholders, 2024 has been a defining year for FGV, marked by significant progress and transformation. Despite the complexities of the global landscape shaped by economic fluctuations, geopolitical uncertainties, and pressing environmental challenges, we have rebounded from past hurdles and emerged stronger. The results we have achieved this year prove that we are on the right path. Our ability to adapt, innovate, and stay true to our core values has allowed us to deliver meaningful outcomes for our stakeholders. REFLECTING ON 2024 The global macroenvironment in 2024 presented a mix of challenges and opportunities that tested the resilience of plantation businesses. Market volatility, driven by trade policy restrictions and geopolitical tensions, continued to put pressure on operational margins. Meanwhile, global demand for agricultural commodities like palm oil and rubber remained robust, supported by population growth and shifting dietary patterns. Competition from alternative oils and fluctuating palm oil prices underscored the need for adaptability. FGV confronted these headwinds with strategic execution and a focused approach. The Plantation Transformation Plan proved pivotal, driving profitability by optimising plantation practices and capitalising on immediate opportunities. By addressing labour shortages and accelerating mechanisation across estates, we boosted efficiency and productivity, resulting in a 15% increase in fresh fruit bunch (FFB) yield to 15.56 metric tonnes (MT) per hectare (Ha). Favourable weather further supported these gains, mitigating risks associated with climate variability. Equally critical was our comprehensive response to the United States Customs and Border Protection (U.S CBP) to resolve the Withhold Release Order (WRO). By implementing enhanced labour standards and ethical recruitment practices, we reinforced our commitment to responsible and sustainable operations, strengthening our compliance credentials and global standing. These efforts, alongside advancements in operational strategies, further increased capacity and efficiency across our estates. These operational enhancements, combined with an improved average crude palm oil (CPO) price of RM4,102 per MT, up from RM3,901 per MT in 2023, drove positive growth. Together, these efforts have translated into a more resilient business, enabling FGV to navigate elevated input costs while seizing growth opportunities and creating sustainable value for all stakeholders. 21
DRIVING LEADERSHIP AND STRENGTHENING GOVERNANCE Governance has been strengthened by enhancing the whistleblowing disclosure procedure, ensuring a transparent and robust system for handling complaints involving Senior Management and Board members. The Board Governance & Risk Management Committee oversees these processes, reinforcing toplevel accountability. Additionally, the Audit Committee’s Terms of Reference (TOR) now explicitly include oversight of conflicts of interest. Together, these measures fortify our governance framework, ensuring resilience, adaptability, and alignment with best practices. To reinforce this commitment, FGV introduced the Gender Diversity in Top and Key Management Policy in November 2024, aimed at increasing women’s participation in leadership, integrating diversity into selection and promotion processes, and fostering an inclusive corporate culture. Reflecting its sustained focus on gender diversity, the Board continues to comprise three women directors out of seven members, surpassing the minimum requirement of 30% female representation. At FGV, we continuously refine our leadership and decision-making approach to meet the evolving needs of our business and stakeholders. Effective governance starts with an understanding of the realities on the ground. To this end, Board members, including myself, routinely visit our business operations. These engagements allow us to connect with workers, observe operations firsthand, and gain valuable insights into the challenges and opportunities within our value chain. By gaining a deeper understanding of risks at all levels of the organisation, we have taken deliberate measures to enhance transparency and accountability. A key milestone this year was the launch of the FGV Anti-Corruption Plan 2024– 2027, reinforcing our zero-tolerance stance on unethical behaviour. This plan is complemented by targeted training on integrity and anticorruption, the introduction of an Integrity Guidebook, and the deployment of e-Latih modules, which collectively engage the entire FGV workforce. Supporting An aerial view of Maokil Estate in Johor, highlighting the oil palm fields that shape the surrounding landscape. 22 FGV Holdings Berhad | Annual Integrated Report 2024 Message from the Chairman
Empowering smallholders and suppliers remain a key focus this year. Through roadshows and awareness programmes, we engaged over 341 participants, including FFB suppliers, to promote sustainability standards, traceability requirements, and regulatory compliance. These initiatives equipped smallholders with the knowledge to align their operations with FGV’s sustainability policies and meet market standards such as the Malaysian Sustainable Palm Oil (MSPO) and Roundtable on Sustainable Palm Oil (RSPO) certifications, ensuring their long-term success in an evolving industry. CREATING SHARED VALUE As a Government-Linked Company (GLC), we remain committed to driving progress that supports both nation-building and sustainable development, while delivering shared value to all stakeholders. In 2024, we declared a final dividend of 5 sen per share, amounting to a total final dividend payout of RM182 million for the year. This aligns with FGV’s dividend policy of distributing at least 50% of our annual Profit After Tax and Minority Interest (PATAMI) and reflects our commitment to shareholder value. These results highlight the success of our strategic initiatives, where improved productivity and operational resilience have contributed to consistent value creation. Beyond financial performance, our mission extends to creating meaningful impact for our stakeholders, particularly the Federal Land Development Authority (FELDA) settlers, independent smallholders, and plantation workers. Recognising the interdependence of our success with theirs, we engaged directly with field workers to develop practical solutions for optimising fruit harvesting methods and minimising emissions by reducing truck idling during loading, enhancing both efficiency and environmental responsibility. Nation Building Our role extends beyond profitability, with delivering value for stakeholders being integral to our mission. FGV delegates at the 7th Pakistan Edible Oil Conference 2025, engaging with global industry to support international growth. Total Dividend (2023: 3.0 sen per share) 5.0 sen per share 23 INSIGHTS FROM OUR LEADERS Sec 03
SUSTAINABILITY INTEGRATION INTO FGV OPERATIONS Sustainability has become a business imperative, particularly in agribusiness, where exposure to Environmental, Social, and Governance (ESG) risks is intensifying. Issues like labour shortages, climate variability, and increasing regulatory scrutiny, including the European Union Deforestation Regulation (EUDR), present complex and urgent challenges. However, sustainability goes beyond managing risks. It is central to nation-building and creating shared value. By embedding sustainable practices into our operations, we enhance rural livelihoods, foster innovation, and position Malaysia as a global leader in sustainable agribusiness. In 2024, FGV introduced an enhanced Sustainability Framework, a comprehensive blueprint structured around five core pillars: Economic Growth, Governance, Social, Environment, and Innovation & Technology. This framework incorporates sustainability-related indicators to measure and track progress, addressing the evolving expectations of stakeholders, customers, and investors while aligning with international requirements. Under the guidance of the Board Sustainabilty Committee (BSC), we have aligned our operations with market standards, including the MSPO and the RSPO certifications while also addressing critical regulatory requirements like the EUDR. Enhanced ESG reporting mechanisms have further strengthened transparency and accountability by integrating key sustainability metrics into our financial and integrated reports. Environment One of the most pressing threats to agribusiness, and humanity as a whole, is climate change. To mitigate its impacts, we continue to prioritise our climate action agenda, focusing on our Group-wide greenhouse gas (GHG) emission reduction ambition. In addition, we have adopted the Energy Audit Conditional Grant (EACG) programme and trialled B100 biodiesel for our transport fleet. These initiatives align with Malaysia’s 12th Malaysia Plan and the National Energy Transition Roadmap (NETR), underscoring our commitment to reducing carbon emissions and advancing the nation’s energy transition goals. Social Social sustainability has been a key focus, particularly in respecting human rights across our value chain. This year, we rolled out a third party grievance mechanism, Suara Kami covering all our estates and mills. In addition, we provided online training for management, on-site training for workers, and distributed educational materials to raise awareness of the Suara Kami Helpline, ensuring grievances are addressed effectively and promptly. We continue to enhance worker welfare by reviewing recruitment policies and upgrading housing and facilities. This includes improving internet access in our remote estates to support better connectivity for both work-related needs and personal well-being. Governance Our sustainability efforts have delivered measurable results with a strong emphasis on transparency. An 83.4% score on the Sustainability Policy Transparency Toolkit (SPOTT), up from 76.7% in 2023, reflects our commitment to governance and sustainability practices. By embedding sustainability into every facet of our business, FGV continues to drive meaningful impact for stakeholders while securing long-term resilience and competitiveness. LOOKING AHEAD The road ahead is not without its challenges. Global market uncertainties, climate change, and evolving regulatory landscapes create complexities that demand adaptability and resilience. To ensure long-term growth, FGV must move beyond its traditional reliance on plantations as remaining static is not an option. We are actively exploring innovative opportunities that align with our sustainability framework, positioning our business for the future. The progress we have made this year gives me confidence that we are moving steadily on our journey towards greater excellence. With stronger performance and a clear focus on sustainability, we are well-prepared to navigate these challenges and capitalise on emerging opportunities. FGV Chairman officiating the Rancangan Perumahan Tersusun (RPT) for our field workers in Sarawak. 24 FGV Holdings Berhad | Annual Integrated Report 2024 Message from the Chairman
As we look to the year ahead, our priorities will focus on three key areas: APPRECIATION On behalf of the Board of FGV, I extend my heartfelt gratitude to everyone who contributed to FGV’s progress in 2024. I wish to thank my fellow Board members, for their commitment, active involvement, and interest in the company’s performance and well-being. We welcome Datuk Abdul Halim Hamzah as Non-Independent Non-Executive Director and Rozainah Awang as Independent NonExecutive Director. Their leadership and insights will strengthen FGV’s governance and drive sustainable growth. We bid farewell to our esteemed departing Board members – Dato’ Mohd Rafik Shah Mohamad, Nik Fazila Nik Mohamed Shihabuddin, and Datuk Dr. Yatimah Sarjiman – for their contributions, and we wish them the best in their future endeavours. We would also like to thank former Group Chief Executive Officer, Dato’ Mohd Nazrul Izam Mansor (August 2021–September 2024), for his inspiring leadership and commitment during his tenure. The Board wishes to thank the Management team and employees at all levels for their hard work and commitment, which have helped drive our achievements. We also extend our gratitude to FELDA, our key stakeholder for their unwavering trust and partnership, which have supported our growth and progress. Similarly, we are grateful to our collaborators, including FELDA settlers, independent smallholders, and business partners. Finally, we owe gratitude to our shareholders, customers, and other stakeholders whose confidence and trust have energised us to uphold the highest standards of accountability and innovation. Tan Sri Rastam Mohd Isa Chairman FGV remains steadfast in its commitment to a future defined by adaptability and ambition. By prioritising and embracing innovation and sustainability, we are strategically positioned to address challenges, deliver meaningful value for our stakeholders, and reinforce our leadership in the agribusiness sector. Strengthening Stakeholder Partnerships: We are committed to fostering shared prosperity by engaging FELDA settlers, smallholders, and local communities. Addressing the WRO and upholding ethical labour practices remain central to our approach. We will also incorporate climate-resilient strategies and sustainable business models to ensure inclusive progress. Driving Operational Excellence: We will build on the success of the Plantation Transformation Plan by further optimising operations through Good Agricultural Practices (GAP), adopting and adapting technology, advancing mechanisation, and implementing enhanced efficiency measures. These initiatives will fortify our foundation for sustained growth. Expanding into High-Value Products and Diversification: We will explore opportunities in downstream products, agricultural technology, and renewable energy, including biofuel production and solar integration. These ventures aim to reduce reliance on commodity cycles and establish a more balanced, resilient business model. FGV Directors visiting our Sabah estates, reflecting on-ground commitment to FGV’s progress. 25 INSIGHTS FROM OUR LEADERS Sec 03
Group Chief Executive Officer’s Review Dear Shareholders, I am pleased to present my first assessment as Group Chief Executive Officer, a role I embrace with great responsibility. With a long history at FGV, stepping into this position prompted me to ask: Why do we exist? Reflecting on our purpose has reinforced the clarity of our mission as a contributor to nation-building: to deliver sustainable value to all stakeholders. This includes creating economic value for our largest shareholder, FELDA, while also driving value for Warga FGV, smallholders, communities, and the natural ecosystems that sustain us, recognising the planet as a vital stakeholder. The strong foundation built over the years, marked by progress, resilience, and a focus on embedding sustainability throughout our business, demonstrate the dedication of our team. Together, we are moving forward with purpose, progress, and meaningful impact. 26
FAKHRUNNIAM OTHMAN Group Chief Executive Officer 27
Our efforts in 2024 led to significant improvements in profitability, underscoring our resilience and adaptability. GCEO officiated the Plantation Division Managers’ Seminar, reinforcing strategic alignment and performance focus across the division. Revenue (2023: RM19,359 million) RM22,158 million Profit After Tax and Minority Interest (2023: RM102 million) RM276 million Profit Before Zakat and Taxation (2023: RM336 million) RM566 million 28 FGV Holdings Berhad | Annual Integrated Report 2024 RESILIENCE IN A DYNAMIC LANDSCAPE The year 2024 marked a turning point for FGV as we navigated a dynamic and challenging operating environment, determined to enhance performance and long-term stability. The lingering effects of the COVID-19 pandemic, particularly on labour availability, posed significant challenges. Through enhanced recruitment efforts and closer engagement with recruitment agencies in source countries, we reduced labour shortages from 16% in 2023 to 12% in 2024. This progress allowed us to realign our operational fundamentals. Enhanced estate management, driven by meticulous plantation practices and a focus on addressing immediate opportunities, alongside strict adherence to GAP, further strengthened our operations. These efforts were reinforced by corrective actions and continuous improvements through mechanisation, manuring, and replanting, which are integral components of our medium and long-term strategies that solidify our industry position. In addition, we successfully navigated the volatility of CPO prices, which fluctuated between RM3,600 and RM5,300 per MT in 2024. These fluctuations required us to optimise operations, manage costs, and enhance value chain integration. Despite these challenges, our efforts in 2024 led to significant improvements in profitability, underscoring our strength and adaptability. A YEAR OF GROWTH AND IMPACT FGV delivered a solid performance in 2024, driven by enhanced efficiency and productivity, cost optimisation, market expansion, and a strong commitment to sustainability. Revenue climbed to RM22,158 million, supported by higher FFB yields, a broader product range, and higher average CPO prices of RM4,102 per MT. The Group recorded a PATAMI of RM276 million this year, in comparison to RM102 million in 2023, reflecting a year-on-year increase of over 100%. Group Chief Executive Officer’s Review
FGV Chairman and GCEO engaging with Malaysia’s Minister of Plantation and Commodities during their visit to Pakistan. on 30 June 2024 to the United States Customs and Border Protection (U.S CBP) to modify the Withhold Release Order (WRO). In response, the company invested RM455.1 million in strengthening labour practices, enhancing infrastructure, and reinforcing grievance mechanisms in line with global standards. These efforts reinforce financial sustainability, investor confidence, and long-term regulatory compliance. STRATEGIC PROGRESS: BP26 FGV’s success in 2024 was anchored in the strategic execution of its BP26, a comprehensive framework designed to navigate an increasingly dynamic and disruptive market. This strategy focuses on short, medium, and long-term objectives, enabling the company to respond proactively to market changes while ensuring agility, adaptability, and sustainable growth. Central to BP26 are its four strategic thrusts; Operational Improvement, Product & Market Penetration, New Growth Areas, and Financial & Capability Building. These thrusts provide a robust foundation for aligning operational priorities with the broader goal of delivering long-term stakeholder value. BP26 ensures effective execution through a dual approach that balances strategic ambitions with operational excellence. The 35 identified Key Initiatives comprise Key Strategic Initiatives (KSIs), which focus on driving growth through high-level strategies and long-term planning and Key Operational Initiatives (KOIs), which aim to enhance daily efficiencies. These initiatives are designed to drive group-wide profitability and deliver measurable results. By aligning immediate operational priorities with future-focused objectives, BP26 positions us for sustained growth and market leadership. 29 INSIGHTS FROM OUR LEADERS Sec 03 Performance and Resilience Building Stronger unharvested bunch elimination, crop security, and better accessibility. With FFB processed reaching 14.13 million MT, CPO production also grew by 11% during the year. The Sugar Division also saw notable progress, with improved performance driven by a 6% increase in average selling prices, an 8% rise in sales volume, an 11% reduction in refining costs, and better capacity utilisation. This growth highlights the division’s continued emphasis on streamlining operations and optimising margins. Beyond business performance, FGV made significant strides in sustainability and governance, including submitting a petition As part of its long-term strategy under the Business Plan 2024-2026 (BP26), FGV has prioritised operational excellence, capital efficiency, and renewable energy to foster sustainable growth. Return on Capital Employed (ROCE) rose to 5.5% in 2024 from 3.7% in 2023, reflecting more effective resource allocation and a disciplined approach to investment. With a target of achieving double-digit ROCE within three years, the company remains focused on optimising cost structures, managing profitability fluctuations, and supporting smallholders while channelling investments into high-margin growth areas. FFB yield per Ha increased by 15% supported by enhanced harvesting practices, including loose fruit collection,
In line with BP26’s long-term strategy, the company continues to strengthen its role in responsible agribusiness while pursuing new opportunities for value creation. Its performance in 2024 highlights not only financial and operational resilience but also a strong commitment to sustainability, innovation, and long-term industry growth. In 2024, FGV became the first Malaysian plantation company to attain GLOBALG.A.P V5.4-1 GFS certification for pineapple cultivation. This achievement enhances the company’s export potential while reaffirming its commitment to internationally recognised sustainability practices. Further advancing its sustainability efforts, FGV expanded its footprint in the biomass market by exporting 10,000 MT of Green Gold Label (GGL)-certified Palm Kernel Shells (PKS) to Japan. By converting palm biomass into bioenergy, the company supports the circular economy, aligning with BP26’s focus on resource monetisation and renewable energy development. Sustainability is not just our license to operate; it embodies our responsibility to contribute to nation-building and defines the legacy we aim to leave for future generations. Our efforts in 2024 underscore our determination to address ESG challenges while delivering measurable progress. On the environmental front, FGV continues to advance renewable energy adoption, reducing reliance on fossil fuels. In 2024, Guided by the principle that “not a single fruit should go to waste”, we adopted the “FootPrint” initiative to optimise resources, modernise operations, and tackle key challenges across estates and mills. Estate management focused on optimising plantation practices, including improved loose fruit collection, minimising unharvested bunches, and strengthening crop security. Regular weeding and infrastructure maintenance enhanced accessibility, while strict adherence to GAP ensured nearly full coverage of targeted fertiliser applications across mature areas. Meanwhile, mechanisation, optimised manuring, and replanting efforts boosted FFB yields, reduced reliance on manual labour, and improved overall productivity. Cost efficiencies were achieved through an optimised man-to-land ratio, reduced administrative costs, and stronger alignment between financial metrics and operational KPIs. These measures reinforced profitability and long-term financial strength, ensuring sustainable value creation. In logistics, we streamlined operations by installing Automated Tank Gauging (ATG) systems at bulking facilities, enhancing storage accuracy and cutting supply chain inefficiencies. While the implementation of SAP S/4HANA is in the sourcing stage, we have completed phases one and two of migrating operational data to cloud platforms and are progressing with the final stage to further strengthen real-time decision-making and operational visibility. Leveraging AI-powered monitoring systems, we sharpened yield predictability, positioning FGV with agility, responsiveness, and operational strength needed for long-term industry leadership. Strengthening market presence and penetration remains a key priority in FGV’s BP26 strategy, ensuring competitiveness in an increasingly dynamic global landscape. In 2024, we intensified our efforts to align with shifting consumer preferences by expanding our portfolio of certified sustainable products and enhancing traceability systems. These initiatives reinforce our commitment to sustainability while meeting the evolving demands of global markets. Building on this foundation, we further advanced our Downstream production capabilities with the launch of the Fract750 Refinery Plant at Kuantan Port. This state-of-the-art facility enables us to better serve high-value markets with specialty products, including high IV Olein (IV60-IV65) and hard stearin, thus strengthening FGV’s competitive position in premium product offerings. Expanding our premium product portfolio requires continuous innovation and diversification. To cater to evolving consumer demands, we introduced high-margin products such as liquid sugar and European Union Deforestation Regulation (EUDR)-compliant Strategic Thrust 1: Operational Improvement Strategic Thrust 3: New Growth Areas Strategic Thrust 4: Financial & Capability Building palm oil derivatives. These strategic additions reinforce FGV’s standing in the global Fast-Moving Consumer Goods (FMCG) market while ensuring compliance with international sustainability standards. Ensuring operational stability is fundamental to sustaining our market leadership. To support this, we expanded our storage capacity by adding 13 new stainless steel tanks, providing an additional 24,900 MT of capacity for renewable energy oils and biomass feedstock. This enhanced infrastructure not only improves efficiency but also enables us to meet the rising demand for sustainable energy solutions. Beyond physical infrastructure, digital transformation plays a crucial role in enhancing efficiency and transparency across our operations. As part of this initiative, we secured a tender from Lembaga Hasil Dalam Negeri (LHDN) to develop, implement, and maintain the MyInvois System and Software Development Kit (SDK) beta release. This initiative strengthens compliance, improves traceability, and further reinforces the integrity of our value chain. Below is the progress across BP26’s strategic thrusts: 30 FGV Holdings Berhad | Annual Integrated Report 2024 Strategic Thrust 2: Product & Market Penetration Group Chief Executive Officer’s Review
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