FGV Annual Report 2018

30 PRACTICED LEADERSHIP BY EXAMPLE FGV HOLDINGS BERHAD MESSAGE FROM THE GROUP CHIEF EXECUTIVE OFFICER ACKNOWLEDGEMENTS I would like to take this opportunity to record my gratitude to the Board of Directors for their stewardship which led the Group through its recent period. I also extend my appreciation to all our employees for their diligence and steadfastness in carrying out their duties for our organisation. They play a crucial role in helping to realise our Transformation Plan and I look forward to serving alongside them as we embark on our new chapter. My thanks also go to our Shareholders and FELDA communities for their continued support. Rest assured, these Stakeholders represent our utmost priority due to our shared history and common goal towards value creation. ESTATES MILLS OTHERS 2019 KEY FOCUS AREA MOVING FORWARD PLAN Implementation of tasking system for harvester and increase productivity from 1.4 to 1.5 MT/man-day Complete harvesting round at 2.5 rounds per month Expedite new workers recruitment to achieve 100% requirement Continue replanting of 15,000 Ha Mechanise 18,500 Ha to improve harvester’s man-to-land ratio from 1:20 to 1:25 New policy setting of ripeness standard to reduce crop rejection from 0.6% to 0.3% Increase uptake of Crude Sustainable Palm Oil by 40% (335k MT in 2018 to 426k MT) Optimise manuring programme by changing fertiliser type and application process Reduce CPO production cost (ex-mill) below RM1,500 Tighten procurement process involving capital and operating expenditures Manpower rationalisation by 10% Rationalise number of mills to improve utilisation factor Divestment of non-core and non-performing assets with expected proceeds of RM350 million Disposal of Chuping plantation land under Sugar Sector Expansion of storage capacity by an additional 50,000 MT Finally, I would like to express my appreciation to all our other Stakeholders, including our regulators, members of the media, suppliers and partners locally and abroad, for their cooperation. We look forward to our continued collaboration as we drive FGV into its next phase of growth. DATO’ HARIS FADZILAH HASSAN Group Chief Executive Officer