FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 229 18 SEGMENT REPORTING Operating segments are reported in a manner consistent with the internal management reporting provided to the chief operating decision maker (“CODM”), which is the Executive Committee (“EXCO”). The EXCO considers the business by product related activities. The reportable segments for the financial year ended 31 December 2013 have been identified as follows: • Plantation – Plantation estates activities including cultivation, harvesting and production of fresh fruit bunches (“FFB”), processing of FFB and selling of crude palm oil (“CPO”) and palm kernel (“PK”). • Downstream – Refining of CPO, fractionation of refined bleached deodorised palm oil (“RBDPO”) and Palm Olein (“PO”), crushing of PK, processing and sales of biodiesel products, production of oleochemicals namely fatty acid and glycerine and production of consumer end products. • Sugar – Sugar refining and sales and marketing of refined sugar and molasses. • Manufacturing, Logistics & Others – Rubber and fertilisers processing and production, bulking and transportation facilities and services, engineering services, information technology, security, travel, research and development activities and sale of planting materials. Reconciliation to the reportable segments mainly relates to the elimination of Felda Holdings Bhd., an associate of the Group up to 27 December 2013 which is included within the applicable reportable segments, and inclusion of investment holding companies within the Group, which do not form part of the reportable segments. The discontinuing operations relates to the share of results of a joint venture, Bunge ETGO L.P due to the dissolution of the entity on 30 November 2013 (Note 15). The EXCO assesses the performance of the operating segments based on profit before taxation. The segment information provided to the EXCO for the reportable segments for the financial year reported is as follows: Manufacturing, logistics and Discontinued 2013 Plantation Downstream Sugar others Reconciliation Total Operations Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Total segment revenue 18,073,010 6,779,899 2,249,689 3,015,711 (17,550,301) 12,568,008 - 12,568,008 Less: Inter-segment revenue (1,694,710) (183,804) (47,209) (512,901) 2,438,624 - - - Revenue from external customers 16,378,300 6,596,095 2,202,480 2,502,810 (15,111,677) 12,568,008 - 12,568,008 Profit before taxation for the financial year 1,181,354 (42,626) 387,158 186,798 (176,362) 1,536,322 (28,753) 1,507,569 Zakat (32,612) Taxation (366,659) Profit after taxation for the financial year 1,108,298 Other information: Finance income 13,076 19,352 27,924 1,800 102,020 164,172 - 164,172 Finance costs (11,261) (8,277) (4,895) (14,998) (63,998) (103,429) - (103,429) Depreciation and amortisation (139,688) (54,479) (39,260) (81,254) 195,743 (118,938) - (118,938) Impairment loss and write off (34,162) (42,589) (1,674) - (13) (78,438) - (78,438) Negative goodwill arising from business combinations - 2,531 - - 65,050 67,581 - 67,581 Fair value changes in LLA liability 494,485 - - - - 494,485 - 494,485 Gain on fair value remeasurement of an associate - - - - 263,280 263,280 - 263,280 Share of results of joint ventures (20,235) (65,361) - - - (85,596) (28,753) (114,349) Share of results of associates 10,494 - - - 72,874 83,368 - 83,368 Capital expenditure 306,215 71,592 85,271 112,479 (1,235) 574,322 - 574,322