Turning Strategy Into Outcomes 40 FGV HOLDINGS BERHAD BUSINESS STRATEGY FGV is driving its new ambition of being a Global Foods and Agribusiness Company and has formulated a high-level business plan aligned with its Strategic Thrusts that are specific to each of the business segments. Our Business Plan, known as BP25, sets annual milestones for FGV to achieve over a three-year period through a combination of both organic and inorganic growth initiatives. FGV will continue to adjust and adapt its implementation plan every year to ensure that the Group remains competitive in today’s constantly changing environment. The Group has begun to structurally embark on building a new core that expands beyond palm oil-related businesses but is still within the agribusiness segment. We also acknowledge the structural challenges that exist within the Group’s current core businesses and the undue influence of commodity price changes towards palm oil which limits value creation possibilities. Two-thirds of FGV’s processed FFB are purchased from external parties such as FELDA settlers and smallholders. FGV’s mill coverage per one million MT of mill capacity is comparatively low in contrast to its peers, due to FGV’s contractual obligation to process FFB from FELDA settlers. Currently, FGV is focused on crude palm products, which is different from our peers who have shifted their focus towards downstream products. Over the last decade, FGV’s integrated margin for its palm oil value chain has been heavily influenced by the fluctuation of commodity prices. At present, we have multiple ongoing initiatives aimed at expanding FGV’s global presence and strengthening our core business. These include collaborating with reputable partners, identifying new opportunities in more sophisticated destinations, establishing marketing offices overseas through organic growth or mergers & acquisitions, and conducting destination trading in consumer countries that includes local bulking, pricing, repacking and a distribution network.International presence is crucial for FGV to achieve its aspiration of delivering sustainable foods and agriproducts to the world. Delivering Sustainable Foods and Agriproducts to the World WIDE-RANGING PRODUCTS & HIGH VALUE-ADD BUSINESS ACTIVITIES Agribusiness Producing Sustainable Palm Products, Rubber and Cash Crops, including R&D Oils & Fats Manufacturing and Trading of Oils & Fats Products Foods FMCG, Food Security and Food Technology Green Energy Bio-Feedstock, Power Generation and Biotechnology INFRASTRUCTURE FOR MARKET ACCESS Total Logistics Solutions Logistics & Transportation Warehouse & Services VISION & END-IN-MIND STRATEGIC THRUSTS Product & Market Penetration Operational Improvement New Growth Areas Financial & Capability Building KEY ENABLERS Human Capital Financial Sustainability
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