FGV Annual Report 2014

Key Initiatives No. Initiatives Status Overall Progress 1 Estate Best Management Practices: Implement sustainable practices (at identified pilot estates) that will drive higher yield and crop quality while maintaining cost efficiency Ongoing – At pilot estate, initial results promising On-track 2 Enhance grading capability at mills to achieve consistent and uniform OER grading results: implement systematic approach to coach weak graders and promote their self-esteem Ongoing – This has contributed to the improvement in OER in 2014 On-track 3 Deploy effective cost management by prioritising procurement of non-critical cost items and implementing effective and practical cost reduction practices Completed – RM25.1 million cost reduction achieved. 40 percent above targeted amount 100% 4 Extend sustainability (RSPO) to all 71 complexes Ongoing – More than doubled the number of mills that are RSPO certified by end of 2014 (from 17 in 2013 to 39 in 2014) On-track 5 Transform labour culture from technical leadership to business and people leadership mindset, to provide commercial awareness Ongoing – Mentoring programs have been put in place in 2014 On-track Felda Global Ventures Holdings Berhad pg 72 BUSINESS OPERATIONS REVIEW PALM UPSTREAM