FGV Annual Integrated Report 2019

64 FGV HOLDINGS BERHAD INTELLECTUAL CAPITAL Our award-winning Research and Development (R&D) Division continues to be an integral part of FGV’s Intellectual Capital, driving significant improvements across our Upstream Division and producing exciting new products for our Downstream business. With a sustained focus on innovation and the use of cutting-edge technology, it is well positioned to add significant value to all of the Group’s Capitals. OVERVIEW WE ARE SUPPORTED BY: OUR ROLE The role of the R&D Division is to augment the value-creation abilities of FGV’s agribusiness through robust business-oriented R&D programmes, supported by our skilled and talented researchers. Our findings result in products of high and useful value to drive better margins for the Group, while integrating the business further. We also focus on maximising value creation through fertilisers, given their important role in the agriculture industry. The sum of these initiatives will benefit the lives of our oil palm-growing communities. FGVAS (FGV Agri Services Sdn. Bhd.) responsible for the production of seeds, seedlings, ramets, rat bait and providing agronomic advisory and laboratory analysis services FGV Fertiliser (FGV Fertiliser Sdn. Bhd.) manufactures fertilisers for internal and external use FGV R&D and FGVAT (FGV R&D Sdn. Bhd. and FGV Applied Technologies Sdn. Bhd.) the research arm for the Group, contributing to product development for the whole plantation supply chain VALUE-CREATION ACTIVITIES Increase oil yield across the Group Support new income portfolio (integrated farming) Reduce inorganic fertilisers Reduce labour dependency through mechanisation Develop niche fertiliser products and increase external markets UPSTREAM SDGs: Strategic Thrusts: Material Matter: We align our Intellectual Capital with: YI MANAGEMENT DISCUSSION & ANALYSIS STATEMENTS AND ANALYSIS Produce new products for Downstream FMCG DOWNSTREAM