FGV Annual Report 2014

During the year, the Cluster continued to expand its footprint in the Fast Moving Consumer Goods (FMCG) industry. Delima Oil Products Sdn Bhd (DOPSB) has increased its exports to current customers in the ASEAN Region especially in Myanmar, Cambodia, Philippines and Middle Eastern Countries. In 2014, we capitalised on the increase in demand for palm oil and palm- based product in the international landscape. Our exports to China, Maldives and Nepal grew steadily, largely due to the strong support extended by our appointed distributors in providing strong sales teams, efficient warehousing facilities and transportation services. Both our domestic sales and export for our established brands (Saji, Adela, Sri Pelangi, Purich and Sun Bear) have grown steadily and revenue has grown in tandem to RM974.3 million as compared to RM949.7 million in 2013. Operational Review To enhance our current businesses and further diversify in food and non-food products, we entered into the following joint ventures in 2014: • JV with M2 Capital Sdn Bhd and Benefuel International Holdings S.A.R.L. to acquire a biodiesel plant in Kuantan Port. This has increased our biodiesel production capacity more than threefold, making FGV one of the largest exporters of biodiesel in Southeast Asia; and • FGV Cambridge Nanosystems Limited (FGVCNS), a 70% owned subsidiary of FGV Downstream acquired in 2013. FGVCNS had entered into research & development collaborations with world class automotive and aircraft manufacturers on various graphene applications. Amongst the applications under development includes automotive parts and wire cables as well as light weight wires and high performance composites which promises class-leading, enhanced performance products. In addition, FGVCNS is also working closely with Malaysian entities on areas involving enhanced rubber products’ performances and conductive ink for new-age circuit boards. Looking forward Looking ahead to 2015, the Downstream Cluster will explore high-value, innovative products and will continue to focus on improvements in factory efficiency and overall performance. Expanding our downstream footprint is in line with the Group's overall strategic priorities to generate short-term revenue alongside our core upstream business. 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 75