FGV Annual Integrated Report 2021

ANNUAL INTEGRATED REPORT 2021 FGV HOLDINGS BERHAD 200701042133 (800165-P) HARNESSING SYNERGIES. DELIVERING VALUE.

A paradigm shift is in the works at FGV. Our business transformation from an oil palm heritage towards a dynamic agribusiness player is gaining strong traction. We have been taking incremental steps towards this evolution and now is the right time to accelerate growth and optimise our potential. We are harnessing synergies across the plantation business value chain right through the parallel food marketplace, as well as relevant service sectors. Going forward, we will harness further synergies through collaboration with key stakeholders including the smallholders in ensuring the fruits of our labour reach all facets of our society. Although the bold steps we are taking are redefining our future, our goal remains the same; To maximise value delivery to a diverse base of stakeholders as a flagbearer of Malaysian agribusiness. HARNESSING SYNERGIES. DELIVERING VALUE. Image: An aerial view of FGV’s estate in Maokil, Johor.

Thursday, 23 June 2022 11 a.m. https://meeting. boardroomlimited.my (virtual meeting platform) Inside This Report 2 About this Report CHAIRMAN’S COMMENTARY 4 FGV’s Chairman Address 2021 ABOUT FGV 10 FGV’s 2021 Highlights 12 Our Story 14 Global Presence 16 Corporate Details 17 FGV’s Key Businesses 18 Organisational Structure 20 5-Year Financial Highlights VALUE CREATION 24 Material Matters 26 Stakeholders Engagement 30 Linking Material Matters to Risks and Strategy 32 Our Value Creation Model 34 Operating Landscape 36 Business Strategy MANAGEMENT DISCUSSION & ANALYSIS 44 Group Chief Executive Officer’s Strategic Review 48 Group Financial Review 55 Group Business Review HOW WE ARE GOVERNED 84 At a Glance - Board of Directors 86 Board of Directors’ Profile 94 At a Glance - Group Management Committee 95 Group Management Committee’s Profile 103 Corporate Governance Overview Statement 140 Statement on Risk Management and Internal Control REINFORCING SUSTAINABILITY 146 Sustainability Statement ADDITIONAL INFORMATION 154 Share Price Movement 155 Financial Calendar 156 Analysis of Shareholdings 160 Top 10 Properties of FGV Group 162 Additional Disclosure • Utilisation of Proceeds • Non-Audit Fees • Material Contracts • Long Term Incentive Plan • Share Issuance Scheme • Recurrent Related Party Transaction of Revenue or Trading Nature 171 Application of the Principles and Practices of the Malaysian Code on Corporate Governance 2021 (MCCG 2021) 174 Notice of 14th Annual General Meeting 177 Statement Accompanying Notice of 14th Annual General Meeting 183 Administrative Details • Proxy Form 14TH ANNUAL GENERAL MEETING Clean and meaningful, this minimalist design approach captures the sense of dynamic advancement within FGV. The synergising lines form escalating wave charts to illustrate heightened performance levels. The lines making up the wave represent the synergies within the FGV Group of Companies and shows the shared goals towards higher value and higher target impacts.

2 FGV HOLDINGS BERHAD MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION ABOUT FGV REPORTING SCOPE AND BOUNDARIES DETERMINING OUR MATERIAL MATTERS About this Report This Report contains information on the value-creating activities that are material to the Group. Hence, the Report has been confined to the developments throughout 2021 from 1 January 2021 to 31 December 2021 (FY2021). Unless otherwise stated, it covers all of FGV’s businesses in Malaysia and the other countries we operate in. This includes operations in which we have full control of subsidiaries and joint ventures. We also report on other developments or information that may transcend our reporting boundaries but are considered highly material to the Group’s performance. As in previous years, the Report provides information in a comparative format for easy referencing and review. Throughout this Report, we have also embedded our sustainability disclosures to demonstrate howwe support value creation and how important sustainability is to the Group. Furthermore, this Report includes all risks and opportunities material to our sustainability but does not estimate or forecast future impacts of our sustainability-related material matters. We prepared this Report based on the determination of our FY2021 material matters to ensure we provide a fair, accurate and comprehensive account of our strategy, performance and prospects. It also takes into account our response to the material matters in the economic, environmental, social and governance aspects of our business. During the year in review, we conducted a Materiality Assessment with the support of an independent consultant, engaging internal and external stakeholders to gain their views on our Group’s material matters. This process involved a review of our Materiality Matrix to determine the factors impacting our delivery of value in FY2021. Following this, we developed the content of the AIR by taking into account qualitative and quantitative considerations as well as factors that may affect our ability to achieve our strategic objectives and maintain the sustainability of our business. We also considered the issues discussed in reports presented to the Board, reported risks and our stakeholders’ interests. Additionally, we factored in the material impacts of the countries and regions where we operate. FGV’s 7th Annual Integrated Report covers performance for the year ended 31 December 2021. This Report adheres to the principles of integrated reporting as established by the International Integrated Reporting Council. Going forward, we will stay guided by the evolving reporting requirements to achieve a more coherent corporate reporting system in tandem with global reporting standards. By continuously enhancing our reporting disclosures, we target to help businesses and investors develop a shared understanding of how the value of FGV Holdings Berhad (FGV) is created, preserved and shared among our stakeholders. This approach clearly articulates the current market infrastructure needed to develop, manage and communicate a strategy that creates long-term value and drives higher performance. To produce this Annual Integrated Report (AIR), we adhered to Malaysia’s reporting requirements, including the Malaysian Code on Corporate Governance 2021 and the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. In addition, we continue to strive towards Global Reporting Initiative Standards benchmarks on sustainability reporting. Annual Integrated Report 2021 Audited Financial Statements 2021 Sustainability Report 2020/2021 For a more complete understanding, this Report should be read together with the Reporting Suite above, as well as other information made available on our website at www.fgvholdings.com. 2021 REPORTING SUITE

3 ANNUAL INTEGRATED REPORT 2021 HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY ADDITIONAL INFORMATION Product & Market Penetration OUR SIX CAPITALS Financial Intellectual Natural Human Manufactured Social & Relationship REPORTING INTEGRITY OUR STRATEGIC THRUSTS 2021 KEY MATERIAL MATTERS OUR TOP RISKS FORWARD-LOOKING STATEMENTS Operational Improvement New Growth Area Financial & Capability Building In upholding the quality of this Report, stringent efforts have been taken to ensure the information presented is reliable, consistent and complete. The Reporting Committee has reviewed this Report to assure its compliance with the International Integrated Reporting Council Framework and its fair representation of the Group’s performance against targeted value creation outcomes. As part of our governance practices, this Report has further been reviewed by the Audit Committee and together with the Audited Financial Statements 2021, submitted to the Board for its final approval. The external auditors have further supported our assurance by providing external assurance on our Audited Financial Statements. They have read all other information and made certain that the material is consistent with the Audited Financial Statements or their knowledge obtained in the audit. The external auditors have also provided a limited assurance review on our Statement on Risk Management and Internal Control. We invite stakeholders and the public to offer their feedback on our reporting in order to uplift our reporting practices and standards. You may submit your feedback by phone calls or email to our Investor Relations Department via the following channels: 03-2789 0000 fgv.investors@fgvholdings.com Where necessary, we have used forward-looking statements related to our Group’s plans, objectives, strategies, future operations and performance. Such statements should not be taken as guarantees of the Group’s future results as we remain subject to various possible scenarios of risks, uncertainties and assumptions. Actual results and outcomes may significantly differ from forward-looking statements. We make no expression or implied representation or warranty that the results targeted by these forward-looking statements will be achieved. NAVIGATING THROUGH THIS REPORT All icons featured here are Navigation Icons that will be consistently featured within our Report as a guide towards better integration and presentation of information. Traceability, Responsible Sourcing & Supply Chain Management Governance, Ethics & Integrity Pandemic Risk Sustainability Certification Sustainability Risk Trading & Market Risk Operational Excellence Climate Action Upholding Human Rights & Labour Standards Cyber Security Risk Occupational Health & Safety Labour Risk OPPORTUNITIES FOR FEEDBACK

4 FGV HOLDINGS BERHAD ABOUT FGV VALUE CREATION FGV’s Chairman Address 2021 Making Dynamic and Responsible Strides Dear Valued Stakeholders, Despite various challenges faced in 2021, we have recorded the best result since going public in 2012. We maintained operational parameters in line with the national average. We have products that are listed as topmost chosen FMCG brands in Malaysia, and our Logistics strength has been enhanced with new assets. We are also advancing our sustainability journey as the first food and agribusiness company in Malaysia to formalise a Climate Action Plan target with the United Nations. On behalf of the Board, I would like to thank you for the privilege to present to you FGV’s performance report for the financial year ended 31 December 2021. It has been a dynamic year of change and growth. Notwithstanding the marked improvement in our performance this year, the Board remains committed to invest and expand towards a broader range of sustainable and synergised agribusinesses as we strive to achieve strong business performance. The Board also advocates the fortification of sustainability strategies in every aspect of our business. To us, the new normal is not just limited to safety protocols. Business today has to be aligned with global sustainability actions and climate goals, meet expectations of greater engagement and deliver sustainable value. This calls for agile response and a responsible outlook with an eye on long-term growth prospects. NAVIGATING TOWARDS A BROADER FOCUS While strategies to optimise every aspect of the Plantation business continue to be prioritised and executed, the way forward for FGV Holdings Berhad (FGV) is to move into higher value-added business activities to achieve more stable returns. On this strategic journey, FGV aspires to become one of the world’s leading sustainable agribusiness players with reputed product brands, and strong distribution capabilities. Embarking in this direction, we have made good strides during the year by Harnessing Synergies and Delivering Value. MANAGEMENT DISCUSSION & ANALYSIS

5 ANNUAL INTEGRATED REPORT 2021 ADDITIONAL INFORMATION HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY FINANCIAL HIGHLIGHTS Financially, great strides were made in 2021 as FGV delivered the highest financial performance since its listing. The Group’s revenue rose 39% year-on-year (y-o-y) to RM19.57 billion, Profit Before Zakat and Tax (PBZT) increased significantly to RM1.71 billion, while Profit After Tax and Minority Interest (PATAMI) increased to RM1.17 billion in 2021. These were attributed to increase in palm products’ margins due to higher average CPO price realised, turnaround of Sugar business and increased volume of high-value products and lower variable operating cost in our Logistics business. On the back of profits made during the year, the Board is pleased to announce a dividend of 8.0 sen per ordinary share, translating to a total dividend payout of RM291.85 million. Further details on FGV’s financial performance can be found in the Group Financial Review on page 48. OPERATIONAL HIGHLIGHTS The surge in the CPO price, averaging RM3,671/Metric Tonne (MT) in 2021, led to Plantation Sector’s profit rising to RM1.60 billion from the higher palm products’ margins gained. Operational improvements are ongoing through extensive replanting to replace old trees and improve our plantation age profile. We continue to record excellence in operational improvements across our estates and mills as attested by the awards and achievements of the year including gold and silver awards under ISO MSOSH certifications for eight estates, winning gold at the Annual Quality Environment Challenge (AQEC), and receiving National Energy Awards (NEA) 2020, under the Renewable Energy (Cogeneration) Category. Labour shortage issues are also being positively addressed. The Government-announced measure to bring in 32,000 migrant workers into the country should help turnaround productivity in late 2022 by boosting the manpower coverage level which currently stand at 68% of the full requirement. The year’s high CPO prices pressured our Downstream margins. However, due to surge in demand for pandemic-related products such as detergents and sanitisers, the Division was buoyed by the good sales volume achieved for oleochemical by-products. Plans are in place for Downstream growth to be sustained by development of new and premium products for a wider export market in the near future. In line with the broadening of FGV’s focus, our Research & Development (R&D) efforts are being extended to support product development across the value chain and provide solutions for operational improvements and increase productivity. Our R&D Division received recognition for high-level quality of laboratory services during the Institut Kimia Malaysia (IKM) Chemistry Night 2020 & 2021. These awards provide higher trust and confidence to industry customers in using our services. Research scope is also being expanded to cover more sustainable innovations such as renewable energy, drought tolerance planting materials, irrigation and slow release fertiliser. FGV’s Sugar Sector recorded a turnaround performance through initiatives to streamline resources, hedge costs, strengthen customer engagement and escalate sustainability commitments. The business made a significant stride in boosting sugar refining margins through negotiations with customers for a higher ASP of refined sugar amidst an environment of rising production costs. FGV’s Logistics & Others (LO) Sector grew their capacity and capability by further expanding transportation and storage assets and services. These investments lay the groundwork to attract business opportunities from other industries in growing our business potential. With the year recording the highest oleochemicals throughput handled at 0.95 million MT, the Sector is showing readiness to attract diversification opportunities. Over the course of the year, FGV’s Integrated Farming venture has fortified the business with three animal feed plants, a dairy processing plant, and three new product brands to carve a distinctive and competitive niche for these businesses. In addition, we have 16 sales distributorships across the country selling 12 types of animal feed, and eight minerals and additives. Together, these allow us to improve our value chain offerings in agribusiness, tap into consumer demands and help the nation close gaps in domestic food supply. Focusing on heightening the brand equity of current star brands in 2021, two videos for Saji cooking oil were launched during the year and this investment has strengthened the position of Saji at 42% refined cooking oil market share and increased sales revenue by 33% from 2020. FGV will be tapping this segment more aggressively to further grow market share and product branding. FGV was also honoured to receive a Gold Excellence Award for Companies with RM2 billion to RM10 Billion in Market Capitalisation, and Silver Special Award for Best Annual Report in Bahasa Malaysia from National Annual Corporate Reports Award (NACRA) 2021. These achievements testify to the good work of our team in delivering a high-quality integrated report that draws attention to FGV’s unique value creation in many parts of our businesses to support investors in decision-making. Further details on FGV’s business operations can be found in the Group Business Review on page 55. GROWING WITH PRIDE While we competitively benchmark our companies against industry leaders, we realise that building organisational capability requires nurturing a more competitive and enterprising workforce that lives up to our corporate values of Partnership, Respect, Integrity, Dynamism and Enthusiasm (PRIDE). To catalyse internal transformation, we are synergising value-creating goals with our employees. One of the key focus was on initiatives and activities to further nurture and cascade the PRIDE corporate culture. Results of an Integrity Assessment Tool (IAT) survey by Institut Integriti Malaysia (IIM) showed that we are making good progress as FGV recorded an improved integrity assessment score of 81% in 2021 from 68% previously. This showed that we have effectively created good awareness on the importance of integrity and inculcated it into the FGV work culture.

6 FGV HOLDINGS BERHAD ABOUT FGV VALUE CREATION As PRIDE also encapsulates prioritising the safety and wellbeing of our employees, a host of new measures were introduced during the ongoing pandemic to escalate safety protocols at the workplace and ensure all employees received the vaccination shots during the year. I am proud to report that as at 21 March 2022, 98% of FGV’s employees are fully vaccinated. ESCALATING SUSTAINABILITY COMMITMENTS FGV intends to change the narrative for Malaysian palm oil by taking a holistic view and approach towards sustainability, and ensure that Environmental, Social and Governance (ESG) considerations continue to take the centre stage in all our undertakings. This is key to advocating the sustainable benefits of palm oil at a global level, and helping the industry gain international acceptance and support as the way forward to meet the needs of a growing world population. It must also be mentioned that our dedicated efforts to inculcate a more proactive and responsible culture within the Group have led to improvements in our SPOTT rankings. FGV has risen to 19th position from 23rd, which shows improved transparency in disclosures related to ESG issues. The main priority for FGV’s sustainability drive in 2021 was the lifting of the Roundtable on Sustainable Palm Oil (RSPO) certification suspension and the United States (US) Customs and Border Protection (CBP) Withhold Release Order (WRO). An independent assessor has been appointed to assess our operations against forced labour and provide feedback and guidance to FGV in managing the issue. Strengthening oversight on the Group’s Sustainability Policy, a Board Sustainability Committee (BSC) was established in September 2021, chaired by myself, and comprises four other members of the Board. A key highlight for the BSC during the year was the emphasis on FGV’s commitment in reducing climate emission to 1.5°C towards becoming a net-zero business by 2050, as part of FGV’s formal pledge to the Business Ambition for 1.5°C campaign, led by Science-Based Target initiative (SBTi) in partnership with the United Nations (UN) Global Compact. In living up to this commitment, we launched an inaugural climate awareness and education campaign called SMART4Climate. It kicked off on 8 October 2021 with a national essay writing competition titled ‘Write4Climate’, organised in collaboration with the Ministry of Environment and Water. The competition was open to secondary school students aged 13 to 17 and members of the public aged 18 and above, aiming to advocate climate change awareness among young Malaysians. Participants were free to choose a topic relevant to the theme ‘Malaysia’s Role in Keeping the World Below 1.5°C’ and submit essays in English or Bahasa Malaysia. The event attracted over 170 participants and we trust that the act of writing about such a critical issue will empower them to become catalysts of change in contributing to the national climate agenda. FGV’s Chairman Address 2021 Making Dynamic and Responsible Strides I believe that concerted action through participation helps change mindsets, thus recommended our Group Strategic Communications Division to organise a Pertandingan Inovasi & Rekacipta for all FGV employees late last year. The competition calls for video entries on how to implement innovation at the workplace environment towards enjoying time and cost saving, while improving productivity. 21 videos have been received and the winners have been announced in our internal bulletin, CASSIA. Towards the end of the year, as devastating floods swept across Malaysia, FGV also reached out to ease the burdens of hundreds of flood victims through contributions in cash and kind. We are grateful that our business zakat contributions through the FGV Welfare Fund allowed us to provide meaningful assistance to communities in their time of need. In total, we contributed around RM15 million for Corporate Social Responsibility (CSR) related activities that benefitted underprivileged individuals, 200 asnaf, 300 flood victims, and for flood relief efforts and upliftment of FELDA regions. Please refer to Sustainability Report for more details. EMBEDDING GOVERNANCE During the year, we ensured that our governance and risk management were constantly reviewed and kept updated to ensure prudent oversight. Focus was directed towards maintaining and enhancing the Group’s Anti-Bribery Management System (ABMS) in compliance to Section 17A of the MACC Act. As we had new members during the year, the Board underwent a mandatory awareness programme for on-boarding on governance and integrity, with specific emphasis on Corporate Liability. An assurance of our commitment was made through an Integrity Pledge. Following suit, 100% of FGV employees had also renewed their Integrity Pledge online in 2021. For employees, a continuous series of awareness sessions were carried out in 2021 across multiple sites of all Sectors, including FGV’s international subsidiaries. In addition, sessions on corruption risks awareness was carried out for FGV’s local and international companies and corporate centres. Further details on FGV’s Governance and Risk Management Initiatives can be found in the Corporate Governance Overview Statement on page 103 and Statement on Risk Management and Internal Controls on page 140. ECONOMIC OUTLOOK AND PROSPECTS FOR 2022 After a challenging year hampered by labour shortages, prolonged pandemic-related operational disruption, and RSPO certification suspensions, 2022 brings optimism for resolutions as well as steadfast growth on Malaysia’s Gross Domestic Product, forecasted to grow to 6% from 3.5% in 20211. MANAGEMENT DISCUSSION & ANALYSIS 1 Source: IMF World Economic Outlook (October 2021)

7 ANNUAL INTEGRATED REPORT 2021 ADDITIONAL INFORMATION HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY GRATITUDE & APPRECIATION The Board and I take this opportunity to express our appreciation to my predecessor, the Chairman, Datuk Wira Azhar Abdul Hamid and Group Chief Executive Officer (GCEO), Dato’ Haris Fadzilah Hassan who resigned on 1 April 2021 and 15 May 2021, respectively. Four independent directors, namely, Datuk Mohd Anwar Yahya, Dr Mohamed Nazeeb P.Alithambi, Datin Hoi Lai Ping and Dr Nesadurai Kalanithi also left during the year and we thank them for their services. In their place, we have been joined by four new independent directors, namely Dato’ Nonee Ashirin Dato’ Mohd Radzi, Dato’ Mohd Rafik Shah Mohamad, Encik Kasmuri Sukardi and Puan Nik Fazila Nik Mohamed Shihabuddin. They bring fresh perspectives and a continued passion to evolve FGV as one of the leaders in agribusiness. We also welcomed FGV’s new GCEO, Encik Mohd Nazrul Izam Mansor, who was appointed on 23 August 2021, and look forward to achieve many milestones with him. Several parties have played a part in the Group’s commendable performance and I am truly appreciative of their contributions. My sincere appreciation extends to our shareholders, especially FELDA, customers and diverse stakeholders for their continued trust and steadfast support in us. I also wish to record our appreciation to the Federal and State Governments, the Ministries, regulatory authorities and Government agencies for their ongoing guidance and assistance. To the settlers and independent smallholders, I reiterate that working together as one with FGV will lead to a shared success. The journey ahead is transformative, and we require your continued partnership, commitment and trust. My deep gratitude extends to our employees who have performed with passion, professionalism and dedication, particularly our frontliners who continued to serve our customers throughout these extraordinary times. Our people are our future. With the guidance of a strong leadership team aligned to our culture of PRIDE, I believe we are in a good position to drive our strategies forward and deliver value to our stakeholders. My appreciation goes out to the members of the Boards within the Group for their invaluable support and counsel. On 10 March 2022, we lost our dear colleague, the late Dato’ Yusli Mohamed Yusoff. The Board wishes to offer our deepest condolences to his family, and acknowledges his valuable contributions as Deputy Chairman and Independent Non-Executive Director of the Group since 2018. Last but not least, I would like to convey my condolences to employees and their families who were victims of the devastating pandemic and floods over the last year. We stand by you in your time of loss, and together we would like to express our special thanks to the nation’s frontliners and volunteers who have been anchors of support through these tumultuous events. Dato’ Dzulkifli Abd Wahab Chairman In FY2022, we look forward to the renewal of our RSPO certification schedule and the lifting of restrictions on our exports by the US CBP, having initiated all the necessary steps to address the matter. Demand for palm oil is expected to increase by 6.50% in 20222, with CPO price remaining high based on current supply forecasts. Going forward, palm oil remains as the mainstay of our business while we strategically deploy appropriate resources into high value and synergistic businesses to mitigate the volatility of CPO price. We are optimistic that this strategic direction will benefit from the 12th Malaysia Plan (12MP) which targets further development and modernisation of Malaysia’s farming and agribusiness industry. With the financial gains of 2021, we are now empowered to invest in further value creation integral to our Strategic Business Plan. Malaysia’s National Digital Transformation Roadmap is also a guiding light towards further advancing our digitalisation journey. Across industries, the pandemic has been an enabler in hastening the adoption of digital solutions, and it had also demonstrated the importance of upgrading and strengthening the technology and infrastructure to ease the process of doing business. In FGV’s operations, there has been a rapid adoption of a digital inclusion agenda, to enable our employees to work, learn and connect digitally. We have also made inroads in establishing e-commerce platforms to expand our marketing channel and reach, while capitalising on the growing popularity of shopping online. In our estates and mills, digitalisation and mechanisation initiatives are being implemented and explored to increase productivity. During the year, our R&D team has introduced the positioning device, Geotagger, for replanting and semi-autonomous guiding of machinery using Global Positioning System (GPS). Digitalisation of our estate operations is ongoing in helping improve operations by digital tracking of harvesting, manuring and Fresh Fruit Bunch (FFB) transportation. We are also focusing in research to utilise drones to manage weeds via aerial spraying. Moving forward, our Industrial Revolution 4 (IR4.0) journey will include further advancements in analytic capabilities, cyber security and automation to improve productivity and data driven decision making. The Board will ensure our Strategic Business Plan provides benefits to the smallholders, especially Federal Land Development Authority (FELDA) settlers, whom we regard as our partners, even more so today as FELDA has emerged as FGV’s largest shareholders as at end-2021 with 79.80% shareholding. We expect to harness mutually beneficial synergies from this closer relationship between FELDA and FGV, driven by clearer communication of shared goals and more responsive strategic alignment. 2 Source: Palm Oil Supply and Demand Outlook Report 2022 by Council of Palm Oil Producing Countries

10 FGV’s 2021 Highlights 12 Our Story 14 Global Presence 16 Corporate Details 17 FGV’s Key Businesses 18 Organisational Structure 20 5-Year Financial Highlights About FGV S E C T I O N 1

FGV is passionate about changing the narrative for Malaysian palm oil by taking a holistic view and harnessing synergies towards optimum value. In our efforts to future-proof Malaysian palm oil, we strive to embed operational excellence and sustainability throughout FGV’s entire business chain while creating value for our stakeholders.

• Completed felling of 13,127 Ha and replanted 2,815 Ha landbank. • Expansion of mechanisation areas to 30,391 Ha, making a total of 115,000 Ha fully mechanised using the Mechanical Assisted Infield Collection method. • Applied 297,178 MT of fertilisers, equivalent to 100% coverage. • Saji ranked #7 topmost chosen FMCG brands in Malaysia, based on Kantar’s Asia Brand Footprint 2021. • Recorded highest oleochemical storage throughput handled of 0.95 million MT. • Introduced cold chain transportation services and acquired 10 refrigerated trucks. • Expanded FGV transport’s fleet capacity to 549 units to strengthen operations. • Penetrate into Oil and Gas Industry - awarded Telecommunication Infra & System Maintenance (TISM) contract for Petronas Refinery & Petrochemical Corporation (PRPC) • Gula Prai ranked #3 topmost chosen FMCG brands in Malaysia, based on Kantar’s Asia Brand Footprint 2021. • Secured refined sugar supply contract with The Coca-Cola Company worth an estimated RM290 million for domestic and international production. • Signed agreement with Wilmar to collaborate in the establishment of a sustainable sugar supply chain. • FELDA emerged as the largest shareholder of FGV with total shareholding of 79.80% as of 31 December 2021. • Launched RM500 million Sukuk Murabahah programme, which indicates confidence in FGV’s balance sheet. • Paid windfall tax of RM184 million based on high CPO price recorded during the year. • Contributed around RM15 million for CSR related activities. PLANTATION LOGISTICS & OTHERS SUGAR CORPORATE FGV’s 2021 10 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION

• Established the Board Sustainability Committee. • Established Gender Equality and Women Empowerment Committee which reflects FGV’s commitment to provide women with equal access to all opportunities throughout our operations. • Improved in the SPOTT rankings, climbing to 19th position from 23rd, with an overall SPOTT assessment score of 74%. • Pledged to adopt Science-Based Targets and become a net-zero emission entity by 2050, making FGV Malaysia’s first food and agriculture company to sign the UN-backed SBTi’s Business Ambition for 1.5ºC pledge. • Expansion of wildlife conservation and human-wildlife conflict management to include pygmy elephants, pangolins and gibbons besides the existing programme for sun bear. • Embarked on a new three-year initiative to protect and enhance High Conservation Value and High Carbon Stock areas within our plantations. • Ensure compliance to responsible sourcing, sustainability standards and regulations through traceability and supply chain management. To date, our palm oil is 100% traceable to mill and 98% to plantation. For rubber, 97% is traceable to plantation (local suppliers). • Integrity Assessment Tool (IAT) survey conducted by Institut Integriti Malaysia (IIM) on 1,500 employees demonstrated an increase in level of integrity in FGV to 81% in 2021, from 68% in 2018. • Maintenance and enhancement of ABMS in compliance to Section 17A of the MACC Act. • Commitment from the Board members toward governance and integrity through the Integrity Pledge. • 100% of FGV employees have renewed their integrity pledge online in 2021. • Harvested 600 Ha of FGV’s Fortified Field Fragrant Rice (3FR) contract farming programme, yielding 3,751 MT of fragrant paddy to produce “Saji Aroma” rice. • Launched FGV Chuping Agro Valley to develop an integrated high-value cash crop and large-scale dairy farming. SUSTAINABILITY GOVERNANCE INTEGRATED FARMING Highlights 11 ANNUAL INTEGRATED REPORT 2021 HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY ADDITIONAL INFORMATION

Our Story FGV Holdings Berhad (FGV) is harnessing synergies to heighten value creation and optimising the potential of every business to make headway in delivering sustainable value to our stakeholder. We are staying steadfastly on track of our strategic gameplan and goals, and ensuring clear communication with our stakeholders. In every action we take, we remain anchored on responsibility and accountability, guided by strong effective governance and prudent financial practices. Today, FGV is among the world’s largest producers of Crude Palm Oil (CPO), accounting for 4% of total CPO production with focus on three core businesses; Plantation, Sugar, and Logistics & Others (LO), while nurturing two new businesses, namely Consumer Products and Integrated Farming. Through harnessing the strengths and expertise of every business segment within the Group, FGV is now well positioned to advance as one of Malaysia’s agribusiness champion. OUR MISSION P R I D E OUR VISION To be among the World’s Leading Integrated and Sustainable Agribusinesses and Delivering Value to customers and stakeholders To be a global leader by: • Creating Value through our Human Capital • Building an Integrated Value Chain Advantage • The Embodiment of Governance and Compliance • Cultivating Diversification in Commodities and Geography OUR ORGANISATIONAL VALUES Partnership Best solutions and ideas come from working with both internal (colleagues) and external parties (business partners). Respect Our sustained success and achievements can only come from respect for people (colleagues and business partners), as well as the environment, which is the main source of our business. Integrity Integrity is about trust, honesty and sincerity. For FGV, it means being responsible and accountable for one’s own actions and behaviours. Each employee is responsible for the Group’s success and business reputation. Dynamism Strive to discover, create ideas and identify growth potential from uncharted opportunities and beyond traditional boundaries, all done in the best interest our stakeholders. Enthusiasm We are enthusiastic about what we do, committed to the growth and future of our agribusinesses, while at the same time, propagating sustainable development around the world. 12 FGV HOLDINGS BERHAD

Plantation FGV’s plantation business is dominated by the integrated segments of Upstream, Downstream, R&D, Marketing & Trading, and Renewable Energy value chain. 438,885 Ha 67 Mills Complexes (97% MSPO & 45% RSPO-certified) Oil palm 336,315 Ha Rubber 7,668 Ha Other crops 3,352 Ha Unplanted area 91,550 Ha Note: All productions and operational figures are based on yearly average Total landbank: (including Malaysia and Indonesia) Managing 219 estates Planted area 30% FGV 27% third-party smallholders 43% FELDA settlers 2.68 mil MT CPO production of 30% Refined 70% Traded Vegetable oil refining capacity 5,553,600 MT Rubber processing capacity 233,400 MT Kernel crushing plant capacity 1,007,600 MT Biodiesel plant capacity 110,000 MT Oleochemical plant capacity 476,000 MT Processing of 13.04 million MT FFB ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION

>12,000 Ha oil palm plantations for R&D purposes 58 highly qualified researchers & 17 agronomists R&D Integrated Farming Integrated Farming leverages on synergies within FGV to diversify into other forms of commercial agriculture. It is part of FGV’s circular economy that involves cultivating cash crops on marginal plantation land and producing animal feed from palm by-products. • Animal feed & nutritional products, for livestock and poultry • Paddy & rice • Food & cash crops • GOGOPASAR e-commerce platform #1 oil palm germinated seed producer in Malaysia with 43% market share Malaysia’s leading fertiliser manufacturer with 700,000 MT annual production capacity Consumer Products #1 refined cooking oil brand in Malaysia with 42% market share #1 margarine brand in Malaysia with 41% market share Other brands HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY ADDITIONAL INFORMATION

Pakistan 7% Malaysia 91% Indonesia 2% Sugar business operates mainly through FGV’s 51% owned subsidiary, MSM Malaysia Holdings Berhad. Sugar 2.05 mil MT Annual sugar production capacity 1.08 million MT Storage capacity of Dry Cargo 0.11 million MT Liquid 0.97 million MT (inclusive Indonesia & Pakistan) LO Sector facilitates the vertical integration of the Group’s core businesses by connecting the flow of assets to drive Group-wide efficiencies. Logistics & Others 549 units Transport’s fleets Among the largest sugar refiner in the world Dominance market share in domestic refined sugar market Other Services FGV services ensure consistent supply of our products in the market through leading storage, efficient logistics, retail and e-commerce distribution solutions. 13 ANNUAL INTEGRATED REPORT 2021

14 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION Global Presence Asia INDONESIA 5 Estates 1 Bulking terminal CAMBODIA 1 Rubber processing facility THAILAND 1 Rubber processing facility PAKISTAN 1 Vegetable oil refinery 1 Trading office* 2 Bulking terminals** 1 Warehouse 1 Jetty operation North America USA 1 Oleochemical plant Europe FRANCE 1 Trading office* SPAIN 1 Trading office* TURKEY 1 Vegetable oil refinery* FGV operates in 9 countries across Asia, North America and Europe. * Joint Ventures (JV) ** One of the two refineries/bulking terminals is a JV Plantation 219 Estates 67 Mills 8 Vegetable oil refineries 6 Rubber processing facilities 4 Kernel crushing plants 3 R&D centres 3 Seed production centres 3 Fertiliser manufacturing plants 3 Trading offices 2 Oleochemical plants 1 Biodiesel plant 1 Green rubber processing facility Sugar 2 Sugar refineries 1 Refined sugar warehouse Logistics & Others 13 Bulking terminals 10 Transportation hub & spoke 5 Warehouses 4 Transportation depots 2 Jetty operations 1 Hotel Integrated Farming 2 Fresh food packaging centres 1 Fresh milk processing facility 1 Agro food valley 1 Animal feed plant 1 Paddy farming 1 Integrated cattle dairy farm FGV’s Assets

15 ANNUAL INTEGRATED REPORT 2021 HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY ADDITIONAL INFORMATION North PERLIS 1 Agro food valley KEDAH 1 Estate 1 Rubber processing facility PENANG 1 Sugar refinery 1 Transportation hub & spoke PERAK 7 Estates 2 Mills 1 Transportation hub & spoke East Malaysia SABAH 78 Estates 11 Mills 2 Vegetable oil refineries 1 Kernel crushing plant 1 R&D centre 1 Seed production centre 1 Fertiliser manufacturing plant 2 Bulking terminals 1 Transportation depot 1 Transportation hub & spoke 1 Jetty operation SARAWAK 10 Estates 2 Mills 1 Transportation hub & spoke East Coast KELANTAN 12 Estates 3 Mills 1 Transportation hub & spoke TERENGGANU 8 Estates 3 Mills PAHANG 70 Estates 26 Mills 1 Vegetable oil refinery 1 Kernel crushing plant 1 Biodiesel plant 1 Oleochemical plant* 1 R&D centre 1 Seed production centre 1 Fertiliser manufacturing plant 1 Rubber processing facility 2 Bulking terminals 1 Transportation depot 1 Transportation hub & spoke 1 Warehouse 1 Animal feed plant South NEGERI SEMBILAN 9 Estates 4 Mills 2 Rubber processing facilities 1 R&D centre 1 Green rubber processing facility 1 Transportation hub & spoke 1 Integrated cattle dairy farm MELAKA 1 Hotel JOHOR 19 Estates 15 Mills 2 Vegetable oil refineries** 1 Kernel crushing plant 1 Seed production centre 1 Fertiliser manufacturing plant 1 Sugar refinery 5 Bulking terminals 2 Transportation hub & spoke 1 Transportation depot 1 Warehouse Central SELANGOR 1 Mill 1 Vegetable oil refinery* 1 Kernel crushing plant 1 Refined sugar warehouse 2 Warehouses 1 Transportation depot 1 Transportation hub & spoke 1 Bulking terminal 2 Fresh food packaging centres 1 Fresh milk processing facility 1 Paddy farming Total FGV’s workforce* (including plantation workers and MSM’s employees) 43,583 86% Male 85% Male 15% Female FGV’s employees**: (15,577) 14% Female 84% Male 16% Female MSM’s employees: (1,033) * Total FGV’s workforce as at 31 December 2021 ** Excluding FGV Dairy Farm, FGV Dairy Industries, FGV Agro Fresh Technology and overseas subsidiaries 87% Male 13% Female Plantation workers: (26,973)

16 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION Corporate Details BOARD OF DIRECTORS Dato’ Dzulkifli Abd Wahab Chairman Non-Independent Non-Executive Director (Appointed on 1 April 2021) Dato’ Amiruddin Abdul Satar Non-Independent Non-Executive Director Dato’ Shahrol Anuwar Sarman Non-Independent Non-Executive Director Datuk Yatimah Sarjiman Non-Independent Non-Executive Director (Appointed on 8 April 2022) Dato’ Mohd Rafik Shah Mohamad Senior Independent Non-Executive Director (Appointed on 1 July 2021) (Redesignated as Senior Independent Non-Executive Director on 30 March 2022) Dato’ Nonee Ashirin Dato’ Mohd Radzi Independent Non-Executive Director (Appointed on 30 June 2021) Kasmuri Sukardi Independent Non-Executive Director (Appointed on 1 July 2021) Nik Fazila Nik Mohamed Shihabuddin Independent Non-Executive Director (Appointed on 1 July 2021) Datuk Wira Azhar Abdul Hamid Chairman Non-Independent Non-Executive Director (Resigned as Chairman, Non-Independent Non-Executive Director on 1 April 2021) Datuk Mohd Anwar Yahya Independent Non-Executive Director (Resigned as Independent Non-Executive Director on 1 April 2021) Dr Mohamed Nazeeb P.Alithambi Independent Non-Executive Director (Resigned as Independent Non-Executive Director on 1 April 2021) Datin Hoi Lai Ping Independent Non-Executive Director (Retired as Independent Non-Executive Director on 23 June 2021) Dr Nesadurai Kalanithi Independent Non-Executive Director (Resigned as Independent Non-Executive Director on 24 June 2021) Dato’ Yusli Mohamed Yusoff Deputy Chairman Independent Non-Executive Director (Demised on 10 March 2022) Datuk Dr Zunika Mohamed Non-Independent Non-Executive Director (Resigned as Non-Independent Non-Executive Director on 11 March 2022) GROUP CHIEF EXECUTIVE OFFICER Mohd Nazrul Izam Mansor (Appointed on 23 August 2021) Dato’ Haris Fadzilah Hassan (Resigned on 15 May 2021) COMPANY SECRETARY Koo Shuang Yen (MIA 7556) REGISTERED OFFICE Level 21, Wisma FGV Jalan Raja Laut 50350 Kuala Lumpur Malaysia Tel : +603 2789 0000 Fax : +603 2789 0001 Website : www.fgvholdings.com INVESTOR RELATIONS AND ENQUIRIES Nurul Syazatul Aiman Taifor Head of Investor Relations Level 20, Wisma FGV Jalan Raja Laut 50350 Kuala Lumpur Malaysia Tel : +603 2789 0000 E-mail : fgv.investors@fgvholdings.com PLATFORM FOR SHAREHOLDERS/ STAKEHOLDERS TO CONVEY CONCERNS Dato’ Mohd Rafik Shah Mohamad (Senior Independent Non-Executive Director) E-mail : sid@fgvholdings.com SHARE REGISTRAR Boardroom Share Registrars Sdn Bhd Registration No: 199601006647 (378993-D) 11th Floor, Menara Symphony No 5, Jalan Prof. Khoo Kay Kim Seksyen 13 46200 Petaling Jaya Selangor Darul Ehsan Malaysia Tel (Help Desk) : +603 7890 4700 Fax : +603 7890 4670 Website : www.boardroomlimited.com E-mail : bsr.helpdesk@ boardroomlimited.com AUDITORS PricewaterhouseCoopers PLT (LLP0014401-LCA & AF 1146) Chartered Accountants Level 10, 1 Sentral, Jalan Rakyat Kuala Lumpur Sentral P.O. Box 10192 50706 Kuala Lumpur Malaysia Tel : +603 2173 1188 Fax : +603 2173 1288 Website : www.pwc.com/my STOCK EXCHANGE LISTING Listed on Main Market of Bursa Malaysia Securities Berhad Listing Date : 28 June 2012 Stock Name : FGV Stock Code : 5222 Stock Sector : Plantation @fgvholdings @fgvholdings FGV Holdings Berhad FGV Holdings Berhad

18 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION Organisational Structure Business Sector Support Sector Business Division Support Division Board of Directors FGV Holdings Berhad Group Governance & Risk Management Group Internal Audit Group Secretarial Upstream Downstream Research & Development Marketing & Trading Operational Excellence Renewable Energy Logistics Others Group Finance Group Procurement Group Information Technology Group Tax Group Treasury Group Legal Group Human Capital Group Strategy Group Transformation Group Strategic Communication Group Sustainability Group Health, Safety & Environment Plantation Board Governance & Risk Management Committee Investment Committee Nomination & Remuneration Committee Board Sustainability Committee Audit Committee Logistics & Others Consumer Products Integrated Farming MSM Malaysia Holdings Berhad Finance & Corporate Services Group Chief Executive Officer

19 ANNUAL INTEGRATED REPORT 2021 HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY ADDITIONAL INFORMATION Located in Kuala Lumpur, Wisma FGV is the headquarters for FGV Holdings Berhad.

20 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION 5-Year Financial Highlights 2021 2020 2019 2018 2017 Operating Results (RM Million) Revenue 19,566 14,076 13,259 13,464 16,922 Operating profit/(loss) 1,779 445 (194) (815) 485 Profit/(loss) before taxation and zakat 1,714 346 (339) (1,025) 403 Profit/(loss) attributable to owners of the Company 1,168 146 (246) (1,081) 131 Key Balance Sheet Data (RM Million) Property, plant and equipment 7,674 7,810 8,190 8,501 8,392 Total assets 17,956 17,180 17,702 18,992 20,833 Total borrowings 3,998 4,293 4,907 5,403 5,498 Total liabilities 10,770 11,079 11,601 12,388 13,002 Shareholders equity 5,421 4,262 4,173 4,465 5,577 Share Information Earnings per share (sen) 32.0 4.0 (6.7) (29.6) 3.6 Dividend per share (sen) 8.0 3.0 2.0 Nil 5.0 Net asset per share (RM) 1.49 1.17 1.14 1.22 1.53 Share price as at 31 December (RM) 1.48 1.28 1.52 0.71 1.69 Note: Financial highlights in previous years are based on latest restated amount in accordance to changes in accounting policy and application of new MFRS.

21 ANNUAL INTEGRATED REPORT 2021 HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY ADDITIONAL INFORMATION REVENUE (RM Billion) EARNINGS PER SHARE (Sen) RETURN ON SHAREHOLDERS’ FUND (%) NET ASSET PER SHARE (RM) DIVIDEND PER SHARE (Sen) PROFIT/(LOSS) AFTER TAX AND MINORITY INTEREST (RM Million) Note: Financial highlights in previous years are based on latest restated amount in accordance to change in accounting policy and application of new MFRS. 2017 16.92 2017 3.6 2017 2.33 2017 1.53 2017 5.0 2017 130.93 2018 13.46 2018 (29.6) 2018 (24.21) 2018 1.22 2018 Nil 2018 (1,080.92) 2019 13.26 2019 (6.7) 2019 (5.90) 2019 1.14 2019 2.0 2019 (246.17) 2020 14.08 2020 4.0 2020 3.43 2020 1.17 2020 3.0 2020 146.16 2021 19.57 2021 32.0 2021 21.55 2021 1.49 2021 8.0 2021 1,167.87

24 Material Matters 26 Stakeholders Engagement 30 Linking Material Matters to Risks and Strategy 32 Our Value Creation Model 34 Operating Landscape 36 Business Strategy Value Creation S E C T I O N 2

FGV endeavours to comprehensively disclose our growth strategies and measures, and address the risks and opportunities affecting our operating environment. Continuous integration between strategies, governance and risk management is carried out to ensure a sound approach is embedded into business decision-making and aligned with our aspirations. This is to ensure that we continue to deliver value in the long term.

24 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION Material Matters APPROACH AND PROCESSES As we strive to compete in a dynamic business environment, FGV continuously assesses the risk and opportunities in the operating landscape to achieve our business strategies. FGV is consistent in conducting a Materiality Assessment annually to understand the scale of its impacts to our varying business. Stakeholders’ feedback is a key consideration factor in the process to gain a more realistic perspective of the prevailing business landscape and challenges. Engaging in frequent assessments is vital to ensure the material matters for FGV Holdings Berhad (FGV) are relevant and updated, whilst making sure that matters of significance to stakeholders and the business are addressed. During the year, we updated our material matters following the current business landscape. The assessment is guided by Bursa Malaysia’s Sustainability Reporting Guide (2nd Edition) and Toolkit on Stakeholder Engagement and Materiality Assessment. In the conduct of the assessment, the following factors were taken into consideration: • Past material matters considered in the preceding year • Issues highlighted by our key stakeholders in previous engagements • Significant issues discussed in Board meetings • Issues relating to global trends and Sustainable Development Goals (SDGs) The above formed the first step in this three-part assessment process. • Identify and prioritise key stakeholders • Create an inventory of material matters that was carried out via internal questionnaire and discussion with project team • Peers benchmarking • Engage with internal and external stakeholders via questionnaire and workshop* • Rank the importance of each matter to key stakeholders and its impacts • Map the material matters to the Economic, Environmental and Social (EES) pillars • Update the Materiality Matrix • Present Materiality Matrix to Senior Management and Board Sustainability Committee for review & validation IDENTIFICATION VALIDATION PRIORITISATION * Proxies were used to represent external stakeholders during the workshop.

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