FGV Annual Report 2017

I N S I D E T H I S R E P O R T 1 Inside this Report 2 About this Report 111 Directors’ Report 116 Statement by Directors 116 Statutory Declaration 117 Independent Auditors’ Report 122 Statements of Comprehensive Income 124 Statements of Financial Position 127 Consolidated Statement of Changes in Equity 129 Statement of Changes in Equity 131 Statements of Cash Flows 137 Notes to the Financial Statements 311 Share Price Movement 312 Financial Calendar 313 Analysis of Shareholdings 316 Top 10 Properties of FGV Group 318 Additional Disclosure: • Utilisation of Proceeds • Non-Audit Fees • Material Contracts • Long Term Incentive Plan (LTIP) • Share Issuance Scheme • Recurrent Related Party Transaction of Revenue or Trading Nature 327 Application of the Principles and Practices of the Malaysian Code on Corporate Governance 2017 (MCCG 2017) OUR REPORT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1 111 311 330 Notice of Annual General Meeting 336 Statement Accompanying Notice of Annual General Meeting 337 Administrative Details • Proxy Form DETAILS OF ANNUAL GENERAL MEETING 330 4 WhoWe Are 6 HowWe Performed in the Past Five Years 7 Our Corporate Details OUR ORGANISATION 4 22 Statement from the Chairman CREATING VALUE LETTER FROM OUR CHAIRMAN 8 22 Management Discussion & Analysis 24 Message from the Group President/Chief Executive Officer 28 Message from the Group Chief Financial Officer 32 Our Human Capital Development 36 Our Performance by Sector: • Plantation • Sugar • Logistics and Support Businesses UNDERSTANDING OUR BUSINESS CONTEXT 24 57 Our Stand on Sustainability: • What Sustainability Means to Us • Group Sustainability Policy • Entrenched Sustainability Governance Structure • Fostering a Culture of Inclusivity • Focusing on What Matters • Contribution to the Oil Palm Industry • Moving Forward ENSURING OUR BUSINESS STANDS THE TEST OF TIME 57 61 Corporate Governance Overview Statement: • Chairman’s Governance Overview • Leadership and Effectiveness • Accountability • Remuneration • Relations with Our Stakeholders • Integrity in Corporate Reporting 102 Statement on Risk Management and Internal Control 109 Statement on Directors’ Responsibility HOWWE ARE GOVERNED 61 8 Our Global Presence 10 Our Market Landscape 13 Assessing Our Material Matters 16 Our Value Creation Model, Shaped by Material Matters 18 The Links Between Material Matters, Strategy and Risks 20 Our Strategic Plan - The Enhancement