FGV Annual Report 2015

43 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 Business Operations Review Palm Upstream During the year under review, the Palm Upstream Cluster contributed RM1,933 million to the Group’s revenue. Our major business activities include managing oil palm plantations and milling operations. In our effort to be a more integrated entity, a group-wide Transformation Programme effected a new business model at the beginning of February 2015. Our milling business model has been converted into an integrated tolling model which involves two major subsidiaries: FGV Plantations (M) Sdn Bhd (FGVPM) and Felda Palm Industries Sdn Bhd (FPI). Under the new business model, FGVPM purchases FFB from FELDA settlers and third parties. These, in addition to internally produced FFB are sent to FPI for processing at an agreed tolling rate. The CPO and CPKO produced is owned by FGVPM and later sold to FGV Trading, a unit of our Trading, Marketing and Logistics (TML) Cluster. More on this can be found on page 52 under TML Cluster P. 52