FGV Annual Report 2014

FGV aims to become a top 10 globally diversified and integrated agri-business by 2020. To drive this forward, we have developed the Global Strategic Blueprint (GSB), which outlines our strategic priorities to achieve this bold objective. We recognise and understand that further significant growth will be driven by focusing on seven key areas – these form the 'pillars' of the GSB. Optimise oleo chemical position Strategic bets in adjacent crops Top 5 in rubber Top 5 in palm Global top 3 in industrial fats SEA and South Asia top 5 in Palm CG Top 10 in sugar Significant position in new geographies – Major consumption centers. M&A to build winning positions – throughout the value chain. Global supply chain to defend upstream. High performance culture. R&D technology incubators. To Become a Top 10 Globally Diversified & Integrated Agri-business by 2020 Excellence in Palm Oil Plantations As the world's largest CPO producer and third largest oil palm operator, we are already well placed in the industry globally. Aligned with our efforts to drive continuous improvements in our plantations, we are rolling out best management practices. For example in harvesting and pruning, we are encouraging the use of new tools such as graphite harvesting poles and innovative ablation methods and tools. New technologies such as Unmanned Aerial Vehicles (UAV) and a tablet-based Plantation Micro-Macro Programme (PMMP) will allow us to enhance estate management. These innovations assist us to monitor and improve efficiency and productivity in the field and increase FFB yield, while giving us the edge over those that are using traditional farm management practices. Furthermore, having embarked on an aggressive replantation programme in 2007 we can expect that by 2020, we will achieve our target of 60 percent prime palm land thereby improving our yields significantly. We are also continuing to expand our landbank by acquiring brownfield plantations both within Malaysia and abroad. Rubber Product Innovation and Expansion Although palm plantations remain our core business, we also have aspirations to be successful in rubber and sugar, thereby reducing our dependence on palm. In rubber, our focus this year has been on mid-stream. We are not only improving the quality of our processed rubber, but are also developing new products, such as Green Rubber. There is a growing demand for green rubber, particularly in tyre manufacturing and production – we are continuing to work with the Malaysian Rubber Board (MRB) and are pushing ahead with commercialising our products in 2015. In addition, we were able to expand our midstream rubber capability by entering into two joint ventures this year – in Myanmar (FGV Pho La Min Company Ltd) and Cambodia (FGV-CVC, with Co-Op Village Co. Ltd). Looking forward to 2015, we will continue to pursue growth in both upstream and midstream in an integrated manner in order to improve profitability. Felda Global Ventures Holdings Berhad pg 58 GLOBAL STRATEGIC BLUEPRINT (GSB)