FGV Annual Report 2018

19 ESTABLISHED INTEGRATED AND COMPREHENSIVE IMPLEMENTATION PLANS 01 02 05 03 07 06 04 08 09 ESTABLISHED INTEGRATED AND COMPREHENSIVE IMPLEMENTATION PLANS ANNUAL INTEGRATED REPORT 2018 FGV HOLDINGS BERHAD I ntegrity - Integrity is about trust, honesty and sincerity. In our context, it means being responsible and accountable for one’s own actions and behaviours. Each employee is responsible for the Group’s success and business reputation. OUR VALUE CREATION MODEL, SHAPED BY MATERIAL MATTERS • Shareholder equity: RM4.47 billion • Total assets: RM18.71 billion • Cash: RM1.22 billion FINANCIAL CAPITAL HUMAN CAPITAL • Employees: 18,742 (Male: 84%, Female: 16%) • Workers: 31,853 (Foreign: 85%, Local: 15%) • Several new Top Management with proven track record and ability to drive change (total of 5) INTELLECTUAL CAPITAL • 3 R&D centres • Planting materials: Yangambi, 3-way and GT1 MANUFACTURED CAPITAL • Number of mills: 68 • Palm oil refineries: 9 globally • Sugar refineries: 3 • Liquid terminals: 13 • Liquid tankers and cargo trucks: 427 SOCIAL & RELATIONSHIP CAPITAL • RSPO membership commenced in 2016 • Partner and support 112,635 FELDA Settlers • Contribution to conservation initiatives: a) Sun Bear Conservation Programme (SBCP) b) Rafflesia Conservation and Interpretive Centre (RCIC) c) Mega Biodiversity Corridor Conservation Project in Lower Kinabatangan Basin d) Tree Planting Programme INTELLECTUAL CAPITAL • 19.70 million seeds sold • 30 research publications • Improvement in efficiencies through technological advancement • Development of three new products for Downstream commercialisation MANUFACTURED CAPITAL • CPO Production: 2.82 million MT • OER: 20.49% • Sugar production: 0.96 million MT • Throughput handled: 7.01 million MT • Tonnage carried: 5.18 million MT FINANCIAL CAPITAL • Revenue: RM13.46 billion • Property, Plant & Equipment: RM10.52 billion • Dividend from JV and associates: RM42.75 million HUMAN CAPITAL • Staff turnover rate of 3.8% • 6,723 trainings conducted for our employees • Right-sizing and right-fitting as part of our continuous manpower optimisation exercise OUR STRATEGY KEY INPUTS OUR BUSINESS ACTIVITIES THAT CREATE VALUE OUR TARGETED VALUE PROPOSITIONS OUR ORGANISATIONAL VALUES P artnership - Best solutions and ideas come from working with both colleagues (internal) and business partners (external). R espect - Our sustained success and achievements can only come from respect for people (colleagues, peers and business partners), as well as the environment, which is the main source of our business. HOWWE SUSTAIN VALUE PLANTATION SECTOR UPSTREAM ACTIVITIES • Harvesting and production of FFB • Processing of FFB into CPO • Production and processing of rubber DOWNSTREAM ACTIVITIES • Refining of CPO • Fractionation of RBDPO and Palm Olein • Crushing of PK • Production of FMCG • Production of Oleochemicals (PME, fatty acids and glycerine) R&D ACTIVITIES • Research and Development • Fertilisers processing • Production and sale of planting materials SUGAR SECTOR • Sugar refining • Sales and marketing of refined sugar and molasses LOGISTICS & SUPPORT BUSINESSES SECTOR • Bulking and transportation facilities and services • Information & communication technology, engineering, security, properties and hospitality services P.R.I.D.E BEST–IN-CLASS OPERATIONS STRONG FINANCIAL MANAGEMENT WELL- ENTRENCHED GOVERNANCE AND ETHICS STRONG SUSTAINABILITY AND SOCIAL RESPONSIBILITY ORIENTATION STAKEHOLDERS WHO BENEFIT FROM THE VALUE WE CREATE VALUE CREATED SOCIAL & RELATIONSHIP CAPITAL • 14 mills RSPO-certified (total as at December 2018: 22 mills RSPO-certified) • 7 MSPO-certified • Contribution to conservation initiatives: - A total of 42 sun bears have been rescued, 32 released to the wild and six in rehabilitation centre - Establishing an area for in-situ and ex-situ conservation of Rafflesia species found in Malaysia - Re-establish a forest corridor network which enables safe migration of wildlife between key forest habitats and avoids human-wildlife conflict - Planted 10,158 trees in the Tree Planting Programme EMPLOYEES AND WORKERS FELDA SETTLERS INVESTORS CUSTOMERS AND JV PARTNERS GOVERNMENT, REGULATORY BODIES, NGOs NATURAL CAPITAL • FFB production of 4.21 million MT • Average oil palm age profile of 14.3 years • Carbon footprint down by 97,620 MT CO 2 eq. A B C D E Creation of an environment which motivates our employees and workers to achieve career aspirations and cultivates a high-performance culture to propel the Group’s growth. Delivery of value through our continuous support in enhancing the livelihood of FELDA Settlers and advocating mutual growth and development of communities. Regaining investors’ trust in FGV as a stable investment proposition by demonstrating our ability to operate with good corporate governance, transparency and integrity, with improved operational processes. Offering a variety of value-added products to the competitive market. Customers are also provided with high-quality, differentiated and innovative products. Additionally, we are working towards full certification of sustainable palm oil production to widen customers’ reach. Operating responsibly to contribute to socio-economic growth through job creation and tax payments. We also develop and retain positive relationships with authorities and support programmes which are beneficial for our Stakeholders. D ynamism - We strive to discover, create ideas and identify growth potential from uncharted opportunities and beyond traditional boundaries, all done in the best interest of the Stakeholders and communities. E nthusiasm - We strive to lead with passion and work with enthusiasm. We are enthusiastic about what we do, committed to the growth and future of our agribusiness, while at the same time, propagating sustainable development around the world. CREATING VALUE FOR OUR STAKEHOLDERS OUTPUTS NATURAL CAPITAL • Landbank: 439,725 Ha • Mechanised area: 96,500 Ha • Planted area a) 339,385 Ha (Oil Palm) b) 11,267 Ha (Rubber) c) 1,603 Ha (Others) E C O N O M I C P E R F O R M A N C E H U M A N R I G H T S A N D L A B O U R R E L A T I O N S Y I E L D I M P R O V E M E N T G O V E R N A N C E , E T H I C S & I N T E G R I T Y R S P O C E R T I F I C A T I O N