FGV Annual Report 2015

55 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 Trading, Marketing and Logistics (TML) Our Strategic Priorities Moving Forward TML Cluster Strategy Potential Revenue Streams Trading & Marketing Storage & Handling Transport & Logistics • Strengthen origination and destination - Logistics • Finding synergies within the Cluster • FVOP refining • Increase customer base • Increase spot term cargo - oleochemicals and biodiesel • Diversification into new markets and new products - non-palm oil base • Expansion of traditional business locally and internationally • MTO Business • Capitalise on Indonesian office to maximise origination • Long-term offtake with reputable players like Wilmar, Olam, LDC, Ruchi and ISF • Market expansion - IndoChina, Philippines, MENA and Western Europe • Trading of non-palm oil - CNO, SBO • CNF>FOB • M&A and collaborations with reputable international partners - Sime Darby, Johor Port, Vopek, and others • To expand new storage capacity internally and externally i.e. Tanjung Langsat and MENA/India • To complement FGVT’s market expansion • MTO - participation in government projects, oil & gas and government agencies • RAPID, infrastructure, defense, aviation and power plant projects • Business expansion - warehouse and supply chain at Tg. Langsat & Shah Alam • Ocean freight - long term/short term chartering • Cross border logistics business Asean Economic Community (AEC) - Myanmar Prospects The TML Cluster will look to integrate its storage and logistics capabilities with the intent to expand beyond CPO. The scope of TML’s capabilities could subsequently include other vegetable oils, for example soybean oil. Similarly, we are looking at possible options to expand TML’s bulking storage facilities beyond vegetable oils. In the long term, the vision is for TML to have the capabilities to cater to other industries, for example petrochemicals and oil & gas, should the opportunities arise. But for now, the Cluster will continue its transformation initiatives to enhance revenue and optimise costs besides capacity expansion locally and overseas. In 2016, upgrades and expansion of in-house facilities will be key to achieving our ambitions of growing turnover by ten-fold. To do this, growing and taking care of our customer base is critical, especially where long-term customers are concerned. Elsewhere, possible collaborations with Johor Port locally, and also overseas parties could strengthen our portfolio. Under FGV Trading we have fully integrated the Group’s trading activities, meaning seamless operation from storage and handling, through trading and product delivery to clients. The centralised unit also allows for control over the flow of assets within the Group, empowering the utilisation of group assets in the most efficient manner possible. While creating a more sustainable operation, this will also provide more savings and eventually become a primary revenue generator.