FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 UNDERSTANDING OUR BUSINESS CONTEXT 39 OUR PERFORMANCE BY SECTOR: PLANTATION Management Discussion & Analysis AWARDS AND RECOGNITION IN 2017 • 8 complexes received Roundtable on Sustainable Palm Oil (RSPO) certificates and 7 mills were certified to the International Sustainability and Carbon Certification (ISCC) • Anugerah Prestasi 2017 Kategori Kilang Kelapa Sawit (CEMS) for KS Jerangau Barat • ISO 14001:2015 certification for Ladang FELDA Besout 6 • International Sustainability and Carbon Certification from the European Commission (ISCC EU) for its biodiesel plant (15 December 2017 - 14 December 2018) • RSPO recognition for its production of Palm Methyl Ester and Glycerin (4 July 2016 - 3 July 2019) • 2017 Outstanding Business Partner Award - Grocery (Basic Essentials and Condiments) by GCH Retail (Malaysia) Sdn Bhd • ISO 9001:2015 certifications for Felda Kernel Product crushing plants, Felda Vegetable Oil Product refineries and FGV Biotechnologies plants • Sustainability Award (EP) and High Commendation in the Oil & Gas Award (EP) - IChemE Malaysia Awards 2017 • Laboratory Excellence PlatinumAward and Laboratory Excellence Award (2017) - Institut Kimia Malaysia • MSOSH Gold Class 1 Award 2016 • Best Poster Award, Oil Palm Phenotyping with Light Detection and Ranging - PIPOC 2017 • Anugerah Emas 3 Bintang APIC 2017 - Annual Productivity & Innovation Conference and Exposition (APIC) 2017 • ISO 9001:2015 certifications for the Production of Oil Palm Germinated Seeds and Fresh Fruit Bunch, R&D on Oil Palm Clonal and Breeding, R&D on Food Tech and Manufacturing of Fertiliser The Sector’s revenue declined to RM12,869.70 million from RM13,446.98 million in 2016 mainly due to lower CPO sales volume as we reduced the trading of external oil. The Sector’s Profit Before Zakat and Tax (PBZT) rose to RM554.18 million from RM233.78 million on the back of improved Fresh Fruit Bunch (FFB) production to 4.26 million MT (2016: 3.91 million MT), higher margins from CPO and Refined Bleached Deodorised Palm Kernel Oil (RBDPKO), and improved share of profits from our joint venture companies of RM5.68 million (2016: share of loss of RM27.29 million). The increase was also contributed by the Sector’s gain on disposal of shares in AXA Affin. KEY FINANCIAL REVIEW FOR 2017 Revenue PBZT RM12,869.70 million RM554.18 million Upstream Downstream R&D