FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 25 The report placed greater emphasis on managing and disclosing non-financial performance benchmarks alongside financial indicators. It underscored the importance of our business strategies, which embed sustainability, towards improving our core business, our human capital, enhancing governance and creating Shareholder value. In this year's report, which discloses our activities for the financial year ended 31 December 2016, we have taken another step forward towards further improving our integrated reporting framework. One key development in this area is FGV's formulation of a Group- wide Sustainability Policy, which has been embedded into our SP20. At FGV, sustainability is understood beyond environmental and social considerations; it additionally refers to the long-term financial sustainability of FGV as a commercial enterprise, i.e. in terms of our profitability, value creation for our Shareholders and as a catalyst of growth. We have seen over the last 12 months that the relationship between external forces are becoming more complex and that Stakeholders now have higher expectations, thereby making it more challenging to create value for our Shareholders. While FGV remains resilient in the face of these challenges, we believe that we can better serve our Stakeholders by adapting to the changing environment. In 2016, we made an important decision in regards to our organisation's overall strategy in light of these factors. Our SP20 is the result of a Group-wide consultative process which included our Key Senior Management, led by our GP/CEO, Dato' Zakaria Arshad, and reviewed by our Board. The SP20 is aimed at achieving more realistic goals within the current business environment; it is focused on securing the long-term sustainable growth of the Company by focusing on core business efficiencies, managing volatilities, harnessing human capital and enhancing integrity. The Board and I have endorsed this new Strategic Plan which, within the current economic environment, provides the best way forward to achieve our goal of becoming a best-in-class agribusiness. This plan leverages on the strength of our fundamentals and demands operational excellence to ensure we continue to be an industry leader. Our people will remain at the heart of our organisation as they are the key enablers of our business. We aim to further hone their competitive edge through structured skills development programmes that are aimed to enhance the capabilities and leadership qualities of our human capital. CHAIRMAN'S STATEMENT Strategic Plan (SP20) Core Business - Efficiencies and Replanting Harnessing Human Capital SP20 aims to secure the long-term sustainability of the Group by focusing on four (4) key areas namely: our core business, human capital, stronger governance and sustainable growth. The next few years will see us aggressively optimising our assets and making difficult decisions to enhance organisational efficiency. Emphasis on developing skills and capabilities, good governance and integrity. Annual General Meeting, 1 June 2016.