FGV Annual Report 2013

Enhancing productivity and efficiency. The Group has adopted a more commercially driven approach to enhance productivity and efficiency. The LLA concluded with FELDA means the Group is now able to directly drive efficiency improvements and making the right capital allocation decisions in key areas such as fertiliser application, replanting and leveraging technology to improve productivity and efficiency across our value chain. About 53 percent of our palms are past their prime and have been earmarked for replanting with Felda Yangambi’s superior planting material. We are committed to an aggressive plan of replanting 15,000 hectares per year, which is equivalent to the size of 18,181 FIFA- sanctioned football fields. At this rate of replanting, we expect to improve the palm age profile to an average of 12 years by 2019, at which time the Group can expect to see a meaningful upside from higher yields. The Group’s R&D arm continued to play an important role in our efforts to increase yield and productivity, reduce unit production costs and ensure environmental sustainability. AWARDS AND ACCOLADES Over the years, FGV has been receiving its share of awards and accolades and 2013 was no exception. Last year, we were the recipient of Frost & Sullivan Malaysia Award under the Palm Oil Plantation Company of the Year category in recognition of the Group’s outstanding performance in Malaysia. As the leading palm oil plantation company in Malaysia, the Group has been awarded The Brand Laureate SME’s Signature Award under the category of “The Best Brand in Oil Palm Germinated Seed” in recognition of the Group’s Yangambi planting material. Yangambi has become an iconic oil palm seed brand and is the most highly sought after planting material in Malaysia. The Group also earned a Merit Award for its 2012 Annual Report at the National Annual Corporate Awards (NACRA) ceremony, jointly organised by Bursa Malaysia Berhad, the Malaysian Institute of Accountants and the Malaysian Institute of Certified Public Accountants. Chairman’s Letter to Shareholders Perutusan Pengerusi kepada Pemegang Saham Felda Global Ventures Holdings Berhad 20