37 ANNUAL INTEGRATED REPORT 2021 ADDITIONAL INFORMATION HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY PLANTATION SECTOR Upstream Division STRENGTHEN AND IMPROVE 1. Intensify crop evacuation and accelerate replanting. 2. Modernisation and increase mechanisation. 3. Uphold human rights and fair labour practice. 4. Cost optimisation through operational efficiency. Downstream Division GROWTH 1. Develop new and premium products. 2. Expand market and product presence. 3. Cost optimisation and compliance to safety standards. R&D Division VALUE CREATION 1. Increase oil yield per hectare. 2. Reduce inorganic fertiliser. 3. Labour reduction through field mechanisation and digitalisation. 4. Product development for new income portfolio. Marketing & Trading Division IMPROVE 1. Aggressive strategy to capture higher trading margin. 2. Expand our presence at destination market. Rubber Operation DIFFERENTIATION 1. Develop new and high margin products. 2. Stringent cost control. Renewable Energy Division CIRCULAR ECONOMY 1. Operational optimisation and product focus. 2. Rationalisation of non-performing asset. SUGAR SECTOR RESILIENT 1. Sustainable manufacturing. 2. Improve sales performance. 3. Digital transformation. LOGISTICS & OTHERS SECTOR EXPANSION 1. Increase bulking and transport capacity. 2. Expand existing business and enter new market. CONSUMER PRODUCTS SECTOR BRAND BUILDING 1. Grow brand presence in local and international markets. 2. Grow market share in the cooking ingredients product category. INTEGRATED FARMING DIVISION NEW MARKET 1. Increase production of cash crops, dairy, paddy and animal feed. 2. Product development. OPERATIONAL IMPROVEMENT NEW GROWTH AREA PRODUCT & MARKET PENETRATION FINANCIAL & CAPABILITY BUILDING Focus on improvement across all operations, maximise productivity, enhance quality and lower costs. Key initiatives under this thrust include intensifying crop recovery, further implementation of GAP in our estates, quality replanting and mills rationalisation. The year saw us emphasising on identification of new and synergistic growth areas to generate our long-term performance. These include strategic investments, integrated farming and dairy, and creating values for palm by-products commercialisation. These initiatives emphasised on maximising value along palm, sugar and logistics value chain through initiatives such as venturing into higher margin Downstream products, specialised sugar and logistics diversification. We are also expanding our regional and international presence in various markets. These pertain to improving financial position and human capital potential to drive our businesses forward, such as better financial management as well as turnaround of non-performing businesses. We are to rightsize the workforce, improve the rewards system and build the right capabilities. 2022 STRATEGIC GOALS Clear forward direction and goals have been set for every business division within the FGV Group, in line with the identified strategic thrusts. To realise this, the Group is intensifying the execution of four strategic thrusts that will see the strengthening of the Group’s infrastructure, market and branding capabilities while building up its human, financial and sustainability resources.
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