FGV Annual Report 2015

13 WHO WE ARE & WHAT WE DO OUR STRATEGIC INTENT & PERFORMANCE HOWWE ARE GOVERNED ADDRESSING OUR RISKS & OPPORTUNITIES CREATING SUSTAINABLE VALUE OUR NUMBERS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Market Landscape Heavy exchange rate depreciation in 2015 with little rebound expected in 2016 – impacting production costs Oversupply in the Malaysian market has caused palm oil stocks to reach record highs – depressing CPO prices (Global stock at 7 Million MT) 20% RM-depreciation vs. USD in 2015 - analysts forecast exchange rate to hover around RM4.09 to RM4.59 per USD in 2016 Exchange rate depreciation has negative impact on cost of production (e.g. fertiliser, imported input costs) 4.8 4.6 4.4 4.2 0 4.59 4.27 4.24 4.09 4.12 4.11 4.24 Q1 ’16 Q2 ’16 Q3 ’16 Q4 ’16 Total FY16 RM: USD Exchange Rate 2016 Average Ave JP Morgan Bloomberg Maybank Nomura Scotiabank Mizuho Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sept 15 Oct 15 3.00 2.25 1.50 0.75 0 2300 2200 2100 2000 1900 Malaysian Stock Mil MT RM/MT Stock Price Malaysian Palm Oil Board (MPOB)