FGV Annual Report 2014

Dear Shareholders F GV has been undergoing tremendous change since our listing in 2012, when we introduced our Global Strategic Blueprint (GSB) to entrench the Group as a leading global agri-business player by 2020. GSB was the result of intense deliberation by the Management, and was fully endorsed by the Board as we were able to envisage clear benefits of a transformation to be built on stronger fundamentals, namely a more diversified business that will enable us to withstand market forces; improved systems and processes that will drive capital, operational and cost excellence; and an empowered team to navigate the Group towards its successes. The Board has been closely monitoring the progress of GSB and is pleased to note a number of positive outcomes. Among these have been the aggressive replanting of 15,000 hectares annually to achieve our target of 60 percent prime palm by 2020. Although this means greater yield in years to come, in the short term, fresh fruit bunch (FFB) and crude palm oil (CPO) production will be affected. True to expectations, in the year under review, these figures dropped slightly from 2013. We processed a total of 14.79 million metric tonnes of FFB as compared to 15.73 million metric tonnes in 2013. Our yield per mature hectare also dropped from 19.59 metric tonnes in 2013 to 18.94 metric tonnes in 2014. This was contributed in part by climate challenges, including drought at the beginning of the year and, to a lesser extent, the floods at year end. We managed to achieve a profit after taxation and zakat of RM538.65 million on the back of RM16.4 billion in revenue, enabling us to declare a final dividend of 4 sen per share. Added to the interim dividend of 6 sen per share, our total dividend for the year stands at 10 sen per share, translating into a total payout of RM364.82 million. Felda Global Ventures Holdings Berhad pg 12 CHAIRMAN’S STATEMENT