FGV Annual Report 2014

The bulking and logistics services were previously organised under the Research & Development (R&D) and Manufacturing, Logistics and Others (MLO) Cluster. The new organisational structure, announced in July 2014, was set up to pursue FGV’s ultimate goal to be a globally diversified and integrated agri-busniess. The Transport & Logistics, Marketing and Others (TLMO) Cluster was formed in line with this strategic aspiration. The Cluster's businesses are strategically divided into three main sub-Clusters under the core business, namely Transport & Logistics, Storage and a new Trading sub-Cluster. Additionally, within TLMO are non-core businesses: Felda Prodata Systems Sdn Bhd, Felda Travel Sdn Bhd and Felda Engineering Sdn Bhd. Our long established marketing arm, Felda Marketing Services Sdn Bhd (FELMA) has traditionally carried out trading of palm oil, acting as a principal agent to FGVPM (Plantations), FPI (Mills), FVOP (Refineries) and FKP (Kernel Processing). While this has been successful, other commodity players are becoming more integrated and competitive. Recognising this, we are driving towards transforming into an assets – backed trading organisation with substantial origination. FGV Trading (FGVT) was thus incorporated on 11 September 2014, and we aim to launch our new business model in early 2015. TLMO Core Business Transport & Logistics Storage FJB Group Felda Bulkers Sdn Bhd Felda Transport Services Sdn Bhd Marketing & Trading FGV Trading Sdn Bhd Felda Grains Terminal Sdn Bhd Non-Core Business Langsat Bulkers Sdn Bhd PT. Patisondo Sawit (Indonesia) Felda Properties Sdn Bhd Felda Marketing Services Sdn Bhd Felda Prodata Systems Sdn Bhd Information Technology Felda Engineering Services Sdn Bhd Engineering Consultancy Hospitality & Leisure Felda Travel Sdn Bhd Felda Global Ventures Holdings Berhad pg 90 BUSINESS OPERATIONS REVIEW TLMO