FGV Annual Report 2018

23 ESTABLISHED INTEGRATED AND COMPREHENSIVE IMPLEMENTATION PLANS 01 02 05 03 07 06 04 08 09 ANNUAL INTEGRATED REPORT 2018 OUR BUSINESS PLAN STOP THE DECLINE & DRIVE SUSTAINABLE GROWTH In recognising the urgency of implementing and achieving our goals in BP21, we have already embarked on key initiatives identified in this renewed strategy. We have further strengthened our operations by continuing to embed sustainable practices deeper within our culture and processes. Our efforts and results achieved thus far are disclosed throughout this report, particularly through our reporting of value creation according to the Six Capitals and our integration of sustainable activities along our entire value chain. PRODUCTS & MARKETS PENETRATION Enhance local biodiesel and produce second generation biodiesel for exports Serve larger markets in food, sugar, agri-products and logistics Improve product offerings to the market FINANCIAL & CAPABILITY BUILDING Strategic collaboration with reputable players in the market Right-sizing & right-fitting, build organisational capability, evaluate and reward right Strengthen balance sheet and divestment of non-core and non-performing assets OPERATIONAL IMPROVEMENT Best management practices & GAP Turnaround of Rubber business Improve efficiency and cost effectiveness NEW GROWTH AREA Landbank expansion through new acquisitions Undertake strategic M&A Venture into new areas that support growth 2019 - 2021 STRATEGY MAP VISION To be among the World’s Leading Integrated and Sustainable Agribusiness that Delivers Value to Customers and Stakeholders especially the Smallholders MISSION STRATEGIC THRUSTS To be a Global Leader by: • Creating value through our human capital • Embody governance & compliances requirements • Building an integrated value chain advantage • Cultivating diversification in commodities and geography BUSINESS OBJECTIVES KEY ENABLERS HUMAN CAPITAL FINANCIAL SUSTAINABILITY World premium sugar producer SUGAR SECTOR Total integrated Third-Party Logistics solution and full-fledged ICT player LOGISTICS & SUPPORT BUSINESSES SECTOR For further details on our strategic initiatives can be found in the Management Discussion & Analysis on pages 31-55. For further details on our commitment to corporate governance can be found in the Corporate Governance Overview Statement on pages 56-95. R&D Driving innovation & growth NEW BUSINESSES Livestock, animal feed & ‘ waste to wealth ’ DOWNSTREAM Maximising palm value chain UPSTREAM Largest producer of sustainable palm products PLANTATION SECTOR Premier agribusiness producer focusing on operational excellence The Strategy Map illustrates the BP21 at Group and business levels, supported by the four Strategic Thrusts with three Key Enablers. The map also demonstrates the need for strong alignment and integration between various business objectives and the Group’s vision and mission. Additionally, we have instituted significant improvements to our governance, as reflected in the changes inour Boardcomposition, Management team and governance processes undertaken in 2018. Our more stringent approach to governance forms the foundation to drive our BP21 forward lying in achieving our long-term goals. With our collective efforts, we are confident that we are well-positioned to harness the opportunities ahead, putting us back on track to deliver sustainable value for our business and Stakeholders.