FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 8 WHO WE ARE & HOW WE CREATE VALUE COMPANY PROFILE In line with the Group's strategy to streamline the management process and increase accountability, we have implemented a new organisational structure that streamlines the existing six (6) business clusters into three (3) main sectors: the Plantation Sector, the Logistics & Others (LO) Sector and the Sugar Sector. Under this new structure, all palm-related business clusters—Upstream, Downstream, Research & Development and Agri- Services (RD&A), and FGV Trading Sdn Bhd (FGVT) —are grouped under the Plantation Sector. The Logistics and Rubber Clusters are grouped under the LO Sector while the Sugar Cluster operates as a standalone Sector. The new structure is aimed at improving operational and management focus, and enhancing clarity and reporting accountability. It will also drive greater synergies by grouping like businesses under a fully integrated value chain. The new organisational structure is effective as at 2 February 2017. Under the Plantation Sector, the Palm Upstream Cluster will continue to be our major revenue contributor and a core business of FGV. As the world's third largest oil palm estate operator with a total landbank of 440,622 Ha, we are committed to advancing a greener future through best practices to meet world standards and by innovating green initiatives throughout our upstream operations. Our Palm Downstream Cluster is an important component of the Group's operation, covers refining, processing and marketing activities related to the conversion of Crude Palm Oil (CPO) and Palm Kernel (PK) into value-added products. PLANTATION SECTOR • Palm Upstream Operate Palm Upstream value chain from planting, estate management & milling operations. • Palm Downstream Process CPO into refined palm oil and further add value through development of packed products. Palm Downstream also process palm kernel oil for oleochemical. • Research & Development and Agri-Services Add value to FGV's palm products through agricultural research to develop disease resistant and high yielding oil palm planting materials. • Trading Market & trade bulk CPO and refined palm oil as commodities. LOGISTICS &OTHERS SECTOR • Logistics Provide logistical support to our palm operations in areas of transportation, storage & bulking and warehousing. • Others - Rubber - Services Other related companies including rubber, Information Technology (IT), engineering and hospitality. SUGAR SECTOR • Sugar Malaysia's leading refined sugar producer, involved primarily in the production of refined sugar products. More information on pages 30-35 More information on pages 36-39 More information on pages 46-49 More information on pages 43-45 More information on pages 43-45 More information on pages 50-51 More information on pages 40-42