FGV Annual Report 2018

44 REMAINED FOCUSED ON VALUE CREATION FGV HOLDINGS BERHAD MANAGEMENT DISCUSSION & ANALYSIS RISK ENVIRONMENT AND MOVING FORWARD PLAN TRANSPORT VOLUME (MILLION MT) 2 1 5 4 3 6 2016 2017 2018 4.39 5.09 5.18 STORAGE TANK UTILISATION RATE (TIMES) 1 7 6 5 4 3 2 8 2016 2017 2018 7.07 7.92 7.34 Challenges Moving Forward Dependency on palm production performance Operational and service reliability due to aging machinery in the existing refineries Low supply of FFB from external parties Limited business opportunities within the Group Excess supply of refined sugar in the local market Embark on innovation of products to diversify income stream following our initiative to commercialise by-products (e.g PKS, sludge oil) and venturing into high margin/ premium downstream products through collaboration with R&D. Establish consistent maintenance and servicing schedule for refining machinery and identify aging machinery for replacement. Revision of FFB pricing to attract higher FFB supply from suppliers. Progressively review and strengthen marketing strategy and approach by focusing on external customers/businesses. Continuously improve marketing plan and strategy to penetrate export markets in Asia Pacific region. MANUFACTURED CAPITAL