FGV Annual Integrated Report 2019

28 FGV HOLDINGS BERHAD We have put in place the right foundations for future growth and we are deeply committed to producing long-term sustainable value for our stakeholders. There have been marked improvements in efficiency and productivity, driven by a greater sense of purpose and urgency, to quickly move past the legacy issues that have held us back. In terms of our financial performance for the year, we posted a net loss of RM246 million, compared to a net loss of RM1,081 million in FY2018. Revenue fell 1.5% in FY2019 fromFY2018 due to lower average CPO realised prices by 11%, but this was mitigated by our outstanding performance in reducing CPO ex-mill costs to RM1,503 per MT compared to RM1,800 per MT in FY2018. Although our financial results in 2019 do not directly reflect the efforts of our dedicated employees to turn the operations around, I can assure you that the Group is now in a better position than it has ever been in the past several years. We have put in place the right foundations for future growth and we are deeply committed to producing long-term sustainable value for our stakeholders. Dear Shareholders, FGV Holdings Berhad has made significant progress in turning around the operational performance of our core palm oil business as we continue to advance towards a brighter future for the Group. DATO’ HARIS FADZILAH HASSAN Group Chief Executive Officer Normalised Oil Palm Age Profile FGV’s palm oil is now 100% traceable to our mills Significant improvements in internationally recognised ESG assessments such as the SPOTT assessment and Green Tigers Index 55 of our 68 mills are now Malaysian Sustainable Palm Oil-certified. In February 2020, we attained 100% MSPO certification Established 2 Model Estates & 2 Model Mills Anti-Bribery Management Systems ISO 37001:2016 (ABMS) Financial Performance Improving Our Operations Focus on Sustainability KEY HIGHLIGHTS RM13,259 million Revenue RM297 million Operating Profit Before Impairment & Fair Value Changes in Land Lease Agreement (LLA) Liability RM339 million Loss Before Zakat and Taxation WE HAVE PUT IN PLACE THE RIGHT FOUNDATIONS FOR FUTURE GROWTH AND WE ARE DEEPLY COMMITTED TO PRODUCING LONG-TERM SUSTAINABLE VALUE FOR OUR STAKEHOLDERS. MESSAGE FROM THE GROUP CHIEF EXECUTIVE OFFICER STATEMENTS AND ANALYSIS