FGV Annual Report 2018

WE ’ V E H A D A C H A L L E N G I N G Y E A R B U T WE FA C E D I T H E A D ON . We have embarked on the crucial first steps needed to rejuvenate our Group and place it back on track. Datuk Wira Azhar Abdul Hamid Chairman SECTION 07 SECTION 08 SECTION 09 105 Statement on Directors’ Responsibility 107 Directors’ Report 112 Statement by Directors 112 Statutory Declaration 113 Independent Auditors’ Report 121 Statements of Profit or Loss 122 Statements of Comprehensive Income 123 Statements of Financial Position 127 Consolidated Statement of Changes in Equity 129 Statement of Changes in Equity 131 Statements of Cash Flows 139 Notes to the Financial Statements 352 Share Price Movement 353 Financial Calendar 354 Analysis of Shareholdings 357 Top 10 Properties of FGV Group 359 Additional Disclosure: 359 Utilisation of Proceeds 359 Non-Audit Fees 359 Material Contracts 359 Long Term Incentive Plan (LTIP) 359 Share Issuance Scheme 359 Recurrent Related Party Transaction of Revenue or Trading Nature 369 Application of the Principles and Practices of the Malaysian Code on Corporate Governance 2017 (MCCG 2017) 372 Notice of Annual General Meeting 378 Statement Accompanying Notice of Annual General Meeting 379 Administrative Details • Proxy Form WE EXAMINED OUR NUMBERS SECTION 01 WE BENCHMARKED OURSELVES AGAINST GLOBAL BEST PRACTICES 01 About this Report 04 Our Commitment to Sustainability SECTION 04 24 Statement from the Chairman 28 Message from the Group Chief Executive Officer WE PRACTICED LEADERSHIP BY EXAMPLE SECTION 02 06 Who We Are 08 Five-year Group Financial Summary 09 Our Corporate Details WE STRIVED TO STAY TRUE TO OUR IDENTITY SECTION 05 31 Management Discussion & Analysis: 31 Financial Capital 34 Natural Capital 39 Manufactured Capital 45 Intellectual Capital 48 Human Capital 53 Social & Relationship Capital WE REMAINED FOCUSED ON VALUE CREATION WE UPHELD THE HIGHEST STANDARDS OF DISCLOSURE SECTION 03 WE ESTABLISHED INTEGRATED AND COMPREHENSIVE IMPLEMENTATION PLANS 10 Our Global Presence 12 Our Market Landscape 14 Assessing Our Material Matters 19 Our Value Creation Model, Shaped by Material Matters 20 The Links Between Material Matters, Strategy and Risks 22 Our Business Plan SECTION 06 56 Corporate Governance Overview Statement: 56 Chairman’s Governance Overview 58 Leadership and Effectiveness 76 Accountability 89 Remuneration 93 Relations with Our Stakeholders 95 Integrity in Corporate Reporting 96 Statement on Risk Management and Internal Control WE REINFORCED OUR STANDARDS OF GOVERNANCE WE CONTINUED TO EMBRACE TRANSPARENCY AND INCLUSIVENESS