FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 UNDERSTANDING OUR BUSINESS CONTEXT 27 MESSAGE FROM THE GROUP PRESIDENT/CHIEF EXECUTIVE OFFICER Management Discussion & Analysis ACKNOWLEDGEMENTS I wish to extend my gratitude to the Board of Directors for the guidance and insights they offered in 2017. Although we went through a period of leadership challenges that affected the general perception towards the Group, our Board Members’ steady-handed approach and openness had allowed us to overcome this difficult chapter and made us more resilient going forward. It is not just “business as usual”, for we are boosting our forward momentum with a new Board composition and renewed focus on our commercial agenda to distinguish ourselves as a progressive, value-driven entity in the marketplace. I would hereby thank all staff, without whom we would not be here on our transformative journey. Their diligence and commitment to our Group are veritable human capital strengths that propel us forward through the ups and downs of our business. I am confident that our shared drive and ambitions for FGV will help us surmount any obstacles to come. I also wish to thank our Shareholders and FELDA communities for standing by us during this period. Your sustained backing gives us the enthusiasm to continue undertaking initiatives that optimise our potential and maximise our value creation and delivery. Dato’ Zakaria Arshad Group President/Chief Executive Officer FGV’s FY2017 results improved in line with our Transformation and Growth initiatives during the year. The Transformation and Growth enhancing efforts will continue into 2018, where we expect further positive results to be achieved. Growth Through Portfolio Balancing Opportunistic value accretive landbank expansion Synergistic strategic alliances in key consumption countries Commence operation of Johor sugar refinery by mid-2018 and increase sugar refining volume by more than 0.30 million Grow logistics and support businesses’ capabilities to generate external opportunities Optimise Financial And Human Capital Divestment of non-core and non-performing assets/ investments Manpower optimisation and talent development Enhance terms of existing joint venture agreements Manage perception through engaging with Stakeholders To our other Stakeholders – our regulators, members of the media, suppliers and partners around the world – thank you for your keen interest in where we are now and what we intend to achieve going forward. Your sure and steadfast support provide us the impetus to make the best of whatever situation we find ourselves in, and we hereby reiterate our commitment to solidify our relationships further for mutual benefits in the years to come.