FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD CREATING VALUE 20 This year, our updated Strategic Plan (SP20 (V2)) is an enhanced plan working from the SP20 which was approved in October 2016. On the back of a renewed leadership aspiration coupledwithdynamic industry challenges, it was decided that there is an urgent need to review the current SP20’s assumptions and growth focus. The enhanced 5-Year plan (2018-2022) was formulated to also take into account pertinent internal and external factors such as the strategic direction from the OUR STRATEGIC PLAN - THE ENHANCEMENT Board members and management, operational challenges and the fluidity of industry and market dynamics. The Group’s journey to reach its goals shall be guided by four Strategic Thrusts namely Operational Excellence through assets optimisation and Innovation, Moving Down Value Chain, Growth through Portfolio World’s Leading • Multinational presence and talent pool • Solidify position as the world’s largest CPO producer • Expands global presence with additional upstream operations in SEA countries and possibly in future, Africa • Increased presence of our other sectors (Downstream, Sugar and Logistics) across all continents starting with integrated regional market penetration Integrated • Integration across upstream comprising R&D, seed production, planting and milling • Integration across downstream value chain comprising refining, distribution and branding • Integrated Logistics to enhance competitiveness and advancement into higher logistics value chain Sustainable • Environmentally and socially responsible corporation • Higher premium product through certified sustainable value chain • Economic aspect SP20 (V2) is aligned with overall sustainability agenda Moving Down Value Chain This will be done through developing specialty products, expanding our products regionally and globally, and intensifying our R&D team’s involvement in higher value-added downstream products. Operational Excellence This will be achieved via asset optimisation, innovation and implementation of key initiatives such as replanting, improving FFB yield and OER through Good Agricultural Practices (GAP), expediting foreign guest worker intake, exercising prudential cost control and harnessing the power of data analytics. HOW WE DEFINE OUR VISION OUR STRATEGIES TO WIN SP20 (V2) groups our Strategic Thrusts into four categories as follows: