Value Creation Is The Bedrock Of Our Business ANNUAL INTEGRATED REPORT 2022 63 Group Business Review Response Outcome Challenge Fluctuations in the global price of vegetable oils • Hedging mechanism on forward sales and FFB purchases • Revision of allocation for committed buyers to allocate sales based on calculated margin between export and local CPO versus processed palm oil • Minimised variation between budgeted and actual sales records Increased competition in the consumer and industrial marketplace • Continuous market monitoring of Indonesian policy, CPO price and margin spread • Intensive engagement with customers to understand and meet their requirements and expectations • Enhancement of the Distributorship Business Model to expand the number of distributors locally and globally • Minimised gaps with targeted sales of products requirements Enhance the labour strategy to Recruit and Retain Accelerate replanting programme Productivity improvements through mechanisation and modernisation Improvement in FFB Yield & OER improvement through the 25:23 project Incorporation of ESG initiatives at mills STRATEGY IN CREATING VALUE PPPTR as a Centre of Excellence for sustainable plantations Enhance the research and development of Downstream consumer products for commercialisation Venture into Rubber Downstream products and increase rubber premium buyers Improve export market growth in oils & fats Enhance traceability for procured FFB Maximise renewable energy potential & waste-to-wealth initiatives
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