FGV Annual Report 2017

16 OUR VALUE CREATION MODEL, SHAPED BY MATERIAL MATTERS OUR STRATEGY INPUTS TOP 5 MATERIAL MATTERS Our Targeted Value Propositions From SP20 Best-in-Class Operations We aim to establish a sustainable future for our Stakeholders by focusing on our core businesses and utilising our key assets efficiently. Strong Financial Management We endeavour to create a strong financial environment that is resilient to internal and external challenges through prudent and optimised measures to maximise Stakeholders return. Well-Entrenched Governance and Ethics We strive to build a solid foundation for our business through good governance and ethical practices. Strong Sustainability and Social Responsibility Orientation We work closely with our people, customers and suppliers to lead the way in maximising resources without compromising on economic, environmental and social considerations. Core Values The core values embedded throughout our business operations to achieve the above value propositions are: Partnership Respect Integrity Dynamism Enthusiasm Capitals We Use to Create Value Our Vision To be among the World’s Leading Integrated and Sustainable Agribusiness that Delivers Value to Customers and Stakeholders especially the Smallholders People The collective knowledge, abilities, intelligence and experience of our people that are instrumental for our production and delivery of value. No. of Employees 19,101 85% 15% Social and Relationship The knowledge, commitments and values shared with our external Stakeholders that uphold our reputation and trust in the marketplace. RSPO membership commenced in 2016 Active engagements with local and international NGOs 3 multiparty conservation initiatives: - Borneo Conservation Trust (BCT) & Sabah Wildlife Department (SWD) - The Sun Bear Conservation Project (SBCP) - Rafflesia Conservation & Interpretive Centre (RCIC) Natural The natural resources within our control from which we produce our goods and services. Total landbank 440,577 Ha Plantable area 350,902 Ha (Oil palm); 12,783 Ha (Rubber); 1,795 Ha (Others) Know-How The value of our collective knowledge, training and proprietary information that determine our competitiveness as a going concern. Award-winning planting material YANGAMBI 3 R&D centres Stakeholders Concerns Impacting Our Creation of Value Economic Performance Managing profitability, revenue growth and balance sheet as well as generating sustainable economic value and creating wealth for Stakeholders. EP Effective Communications Delivering accurate and updated information through the right channels to strengthen communications between FGV and our Stakeholders. EC Governance, Ethics & Integrity Organisational values, principles, standards and norms, such as code of conduct and ethics and commitment to integrity that have been developed, approved and implemented. Also includes the governance structure and practices in place to manage the organisation. GE Human Rights Ensuring working conditions are non-exploitative by implementing human rights frameworks, such as the Universal Declaration on Human Rights (UDHR) and the International Labour Organisation (ILO) Core Conventions. HR Yield Improvement Continually improving yield to reduce pressure on new land development without intensifying the use of chemical pesticides and fertilisers through enhancing operational efficiencies and innovation. YI Strategic Thrusts Operational Excellence Growth Through Portfolio Balancing Moving Down Value Chain Optimise Financial & Human Capital Manufactured The tools, buildings and infrastructure that contribute to our production of goods and services. 69 Mills 10 CPO refineries globally (including JVs) 2 Sugar refineries 15 Bulking installations (liquid and dry storage terminals) Financial The monetary assets we use to produce our goods and services. Shareholder Equity RM5.61 billion Total Assets RM20.56 billion Cash RM1.69 billion