FGV Annual Report 2015

169 WHO WE ARE & WHAT WE DO OUR STRATEGIC INTENT & PERFORMANCE HOWWE ARE GOVERNED CREATING SUSTAINABLE VALUE OUR NUMBERS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING ADDRESSING OUR RISKS & OPPORTUNITIES Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Chief Financial Officer’s Statement Dear Shareholders, 2015 proved to be a challenging year for our Company, but the diversity of our asset portfolio and our ability to respond decisively to the volatile and uncertain global economic environment provided a bedrock of resilience. Ahmad Tifli Dato’ Haji Mohd Talha Group Chief Financial Officer Revenue (2015) RM 15.56 b i l l i o n 2% due to higher volume of CPO sold CPO Price (2015) 8 % RM2,210 per MT operation Replanting exercise has shown positive results Executing Group wide cost optimisation initiative since 2014; and Expanding downstream business to minimise reliance on Upstream business. Overview of Financial Year 2015 Financial year 2015 was a pivotal and challenging year for FGV, marked by lower CPO prices and environmental effects, such as El Nino. This, along with sluggish global economic growth and increased volatility in oil prices and exchange rates, resulted in the Group recording a Profit After Tax of RM301.28 million, a reduction of 44% from FY14. Despite the obvious challenges, our Company saw respite in our trading take-off, procurement cost drives and downstream turnarounds. Our Transformation Programme helped prepare us for the challenges faced at present. Hedged on the three focal pillars of Enhancing Revenue, Cost Optimisation and Operational Excellence, our Company managed to hold steadfast against strong headwinds. Our drive for Best Management Practices has shown delivery of efficiencies in trials with selected Estates. The success of this pilot scheme will be replicated to a larger number of estates in 2016. Additionally, further enhancement of near-term revenue will be harnessed through the launch of our Trading Business, where our Company enters as a credible player in a new market.