FGV Annual Report 2014

Key Initiatives No. Initiatives Status Overall Progress 1 Geographic expansion into midstream operations, in Cambodia Completed – Set up FGV-CVC Cambodia Ltd (1st September 2014) together with Co-Op Village Co Ltd, which exports CSR grade processed rubber 100% 2 Advance Green Rubber production in 2014 to enable full commercialisation by 2015 Completed 100% 3 Finalise organisational model for Rubber Cluster (new in 2014) Completed 100% In Thailand, our natural rubber-processing capability is delivered through Feltex Co Ltd, a joint venture (JV) company between Felda Rubber Industry and Teck Bee Hang Co. Ltd. Additionally, in 2014, we entered into two new JV's: • We formed FGV Pho La Min Company Ltd in Myanmar together with Pho La Min Trading Company Ltd to apply for Myanmar’s foreign investment license in order to invest in rubber related business activities in the country. FGV Pho La Min was incorporated in 26 May 2014. • We also set up FGV-CVC Cambodia Ltd together with Co-Op Village Co Ltd, in Tboung Khmum province, which exports CSR grade processed rubber. At the same time, we are in talks with a few potential parties to expand both upstream and midstream rubber related business activities in Cambodia. FGV-CVC commenced on 1 September 2014. Looking forward Looking ahead to 2015, the Rubber Cluster has put in place a number of initiatives to help drive towards its strategic priorities. One of its key initiatives is to increase its landbank size. The Cluster’s goal is to own 10,000 hectares and 2,500 hectares of landbank in Cambodia and Myanmar respectively. In Malaysia, it aims to increase its landbank by another 6,000 hectares in 2015. Further plans for 2015 are to increase production capacity through mergers and acquisitions in South-East Asian countries. To improve Green Rubber product quality and market acceptance, FGV Rubber is collaborating with established compounder companies for commercial evaluation on Green Products such as green tyres, tyre treads, automotive and engineering parts, adhesives, fire retardants and other advanced rubber application. Felda Global Ventures Holdings Berhad pg 80 BUSINESS OPERATIONS REVIEW RUBBER