FGV Annual Report 2014

Sugar Capacity Expansion and Adjacent Crops In our Sugar Cluster, we will continue to expand capacity and expertise in the refining business and grow our internal trading capabilities in 2015. We are investing in a new refinery in Johor (operational by 2017) and are expected to increase our production capacity from 1.1 million tonnes to 3.3 million tonnes. In addition, we plan to strengthen our portfolio and diversify earnings by expanding strategically into adjacent crops such as rice, cassava, soy and coconut. Driving Palm Oil Downstream FGV's Palm Oil Downstream Cluster strives for a leading position globally in industrial fats and regional heavyweight status in palm-based consumer goods. We are also pursuing a significant market share in the biodiesel and renewable energy market globally. Our portfolio of consumer goods continues to grow: by both adding to our already-popular products in Fast Moving Consumer Goods (FMCG), as well as entering into new arenas. Our staple products, Saji, Tiga Udang cooking oils and Seri Pelangi margarine, are now complemented by new brands such as Sunbear peanut butter, Adela margarine spread and Sajimee instant noodles. We have also recently introduced a personal care brand, Purich, on our journey to achieve a top five position in Consumer Goods across South East Asia and South Asia. Moving forward, our downstream business also aims to capture higher margins and high-growth products in the specialty ingredients segment and optimise our oleochemical position by maximising our position in the United States as the third largest Oleochemical producer in North America (TRT US) and existing partnership with Procter & Gamble (P&G) in Malaysia. Saji product Group In-house Research and Development In order to successfully deliver on our strategic priorities, FGV has integrated the 'blue ocean strategy' to complement our GSB by creating uncontested market space through the introduction of new innovative products to the market. An example of this is our award winning, high yielding DxP Yangambi seeds. Our world-class R&D Cluster also supports our other Clusters directly. In Palm Oil downstream for example, R&D helped to diversify our portfolio of quality food and innovative non-food products. Our R&D arm, through Felda Agricultural Services Sdn Bhd (FASSB), is Malaysia’s premier oil palm seed producer – it supplies 40 percent of the country’s annual seed requirements. FASSB is already at the forefront of R&D in oil palm breeding biotechnology, tissue culture, agronomy and crop protection. By inventing new high-end, niche products such as biodiesel and carbon nanotubes, we continue to create new market spaces. Partnering with Cambridge Nanosystems Limited, we produced the world’s first high-grade carbon nanotubes and graphene in 2014. Graphene, dubbed "the wonder material", is not only stronger than diamonds but also more conductive than copper – these unique properties are set to transform manufacturing processes and the performance of thousands of electronics and consumer goods in the near future. Our values FGV believes in the importance of having a balanced and harmonious work environment to keep our employees highly engaged. We strive for our staff to live our core values – partnership, respect, integrity, dynamism and enthusiasm – in our aspiration to build a high performance culture. Alongside these commitments, our continued and focussed efforts to deliver our strategic priorities underline the cultural and operational shift that will propel us to achieving our 2020 ambitions. Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 59