FGV Corporate Brochure

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FELDA GLOBAL VENTURES HOLDINGS BERHAD (800165-P) Level 45, Menara Felda Platinum Park, No. 11, Persiaran KLCC 50088 Kuala Lumpur, Malaysia T +603 2859 0000 F +603 2859 0016 E [email protected] INVESTOR RELATIONS Level 25, Menara Felda Platinum Park, No. 11, Persiaran KLCC 50088 Kuala Lumpur, Malaysia T +603 2859 0000 F +603 2859 0016 E [email protected] MEDIA RELATIONS Level 42, Menara Felda Platinum Park, No. 11, Persiaran KLCC 50088 Kuala Lumpur, Malaysia E [email protected] feldaglobal.com All facts & figures contained herein are accurate at time of print on 05 June 2015. Ingenuity Incorporated

Transcript of FGV Corporate Brochure

Page 1: FGV Corporate Brochure

FELDA GLOBAL VENTURESHOLDINGS BERHAD(800165-P)

Level 45, Menara FeldaPlatinum Park, No. 11, Persiaran KLCC50088 Kuala Lumpur, MalaysiaT +603 2859 0000F +603 2859 0016E [email protected]

INVESTOR RELATIONS

Level 25, Menara FeldaPlatinum Park, No. 11, Persiaran KLCC50088 Kuala Lumpur, MalaysiaT +603 2859 0000F +603 2859 0016E [email protected]

MEDIA RELATIONS

Level 42, Menara FeldaPlatinum Park, No. 11, Persiaran KLCC50088 Kuala Lumpur, MalaysiaE [email protected]

feldaglobal.com

All facts & figures contained herein areaccurate at time of print on 05 June 2015.

IngenuityIncorporated

Page 2: FGV Corporate Brochure

Felda Global Ventures Holdings Berhad (FGV) is a global, diversified and sustainable

integrated agri-business leader, dynamically advancing to lead as a top 10 global player

by 2020.

Incorporated in Malaysia in 2007, FGV progressed into a diverse agri-business company

and rapidly established itself as Malaysia’s leading global agri-business player.

Today we are the world’s largest producer of crude palm oil (CPO), a leader in Malaysia’s

sugar industry and a pioneer of cutting edge green technologies, anchored by a 18,000

strong workforce and a global integrated supply chain able to add value to every

endeavour.

To be the leading globally diversified integrated

agri-business

VISIONMISSION

To be a global leader by:

❙ Creating value through our human capital

❙ Championing our locally invested culture

❙ Building an integrated value chain advantage

❙ Cultivating diversification in commodities and geography

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NOTES1) China’s refineries consist of 2 palm oil refineries and 1 downstream processing facility * Joint-ventures # Associates

PLANTATIONS

REFINERIES

BULKING INSTALLATIONS

SALES & MARKETING

CANOLA AND SOYBEAN

OLEOCHEMICALS

SUGAR FACILITIES

RUBBER MANUFACTURING

DISTRIBUTION OF BULK PRODUCTS

France & Spain

• 2 trading offices*

Turkey

• 1 refinery*

Thailand

• 1 rubber processing facilities

China(1)

• 2 refineries*• 1 bulking installation

Cambodia

• Distribution of packed products

Canada

• 1 canola & soybean crushing & refining facility

USA

• 1 oleochemical plant

Pakistan

• 1 refinery#Philippines

• Distribution of packed products

Indonesia

• 56,422 ha of oil palm plantation• 1 refinery*• 12,844 ha rubber plantation• 1 rubber processing facility• 1 bulking installation

Malaysia

• 370,922 ha of oil palm plantation• 71 mills• 5 crushing plants• 7 refineries• 1 oleochemical plant*• 15,429 ha of rubber plantation• 8 rubber processing facilities• 2 sugar refineries• 4 bulking installations• 7 transport hubs

OUR GLOBAL PRESENCEOur overseas footprint spans the globe, with operations in more than 10 countries

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AN EXPANDING PRESENCE

Felda Global Ventures Holdings

Berhad (FGV) operates under six main

business Clusters: Palm Upstream, Palm

Downstream, Rubber, Sugar, Research &

Development (R&D) and Agri-Services, and

Trading, Marketing and Logistics (TML).

With operations in more than 10 countries

across North America, Europe, Asia and the

Middle East, FGV aspires to be one of the

top 10 agri-business conglomerates in the

world by 2020.

Palm Upstream

Palm Downstream

Rubber

Sugar

Research & Development (R&D) and Agri-Services

Trading, Marketing and Logistics (TML)

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FGV’s progression towards becoming one of the world’s leading agri-businesses by the year 2020 will open up global possibilities

and potentials through our agri-business solutions. With world class technology and the passion of more than 18,000 talents.

FGV strongly holds to the belief that the future of the Group is shaped and determined by its people.

By 2020, FGV aims to become a top 10 globally diversified and integrated agri-business. To drive this forward, we have developed

the Global Strategic Blueprint (GSB), which outlines our strategic priorities to achieve this bold objective. We recognise and

understand that further significant growth will be driven by seven key areas. These areas are the ‘pillars’ of the GSB.

R&D technology incubators

High performance culture

Global supply chain to defend upstream

M&A to build winning positions – throughout the value chain

Significant position in new geographies – Major consumption centers

Strategic bets in

adjacent crops

Top 5 in rubber

Top 10 in sugar

Top 5 in palm

Global top 3 in

industrial fats

SEA and South Asia

top 5 in Palm CG

Optimise oleo

chemical position

To Become a Top 10 Globally Diversified & Integrated Agri-business by 2020

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Winning New BusinessThe combination of innovative solutions,

production and manufacturing footprint, and

engineering capability; enables us to win new

business by offering solutions for our customers

Delivering High-Quality Services & ProductsWe deliver high-quality services & products to

the right place, at the right time, strengthening

customers and stakeholders relationships and

creating strong financial returns

Applying Lean ProductionA safe working environment and continuous

improvements in our production processes,

through efficient use of resources with minimal

environmental impact are key focus in our

plantations and facilities around the world

Maintaining Strong RelationshipsContinuous relationship building with customers,

acquiring market intelligence and understanding

of market trends which then informs our

investment decisions

World Class Research &

Development

Values

Investment in Human Capital

Operational & Service Excellence

Sustainability

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Driving Future GrowthWith years of strong accumulated agricultural

experience, an actively managed “bank”

of assets and pipeline of development

opportunities are key drivers of future growth

High Governance and Risk PolicyWe have created and are maintaining a robust

internal control and reporting environment,

with strong process for risk identification

and mitigation, implemented by a dynamic

management team and overseen by an

experienced Board of Directors

Completely Integrated

Value Chain

Global Footprint

Corporate Social

Responsibility

BUSINESS MODEL

Shareholder Return Long-term shareholder value is provided in the form of steadily growing earnings and dividends

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ACTIVATINGSUSTAINABILITY IN ALL WE DO

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that, apart from being sustainable, FGV’s palm

oil production system is contributing towards

mechanisms to reduce global warming based on

standards set by the European Commission.

MALAYSIAN SUSTAINABLE PALM OIL (MSPO) CERTIFICATION

MSPO is similar to the RSPO and ISCC but takes

into consideration the national socio-economic

agenda – focusing particularly on developing

marginalised local communities – while adhering

to all local, national and ratified international

laws and treaties. FGV has been actively involved

in developing the standard, and is among the

few plantation companies to volunteer to pilot-

test it.

GOOD AGRICULTURAL PRACTICES (GAP) AND GOOD MANAGEMENT PRACTICES (GMP)

The sustainability of our businesses is

interdependent with the sustainability of

the ecosystem surrounding our operations.

We have been implementing a number of

Good Agricultural Practices (GAP) and Good

Management Practices (GMP) to ensure

the efficient use of natural resources hence

safeguard the long-term productivity of the land

that we cultivate. We are keen advocates of

zero-burning, implementing Leguminous Cover

Crop (LCC) and Integrated Pest Management

(IPM). We also employ science-based nutrient

management and enrich the soil with organic

fertilisers as well as beneficial microorganisms as

standard practices in all our oil palm plantations.

ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO) CERTIFICATION

As a founding member of the RSPO, FGV has

played an active role in promoting sustainable

practices via the guidelines since its inception in

2004.

FGV was among the first agricultural companies

to obtain the mill certification in 2010; and

the first in the world to organise a smallholder

group to obtain the RSPO Fresh Fruit Bunch (FFB)

Certification. In the process of certifying our

mills, we also certified about 40,000 associated

smallholders. Although we had initially targeted

to complete auditing our mills by 2017, we made

such rapid progress that we are on track to

complete the task by 2015.

Apart from the mill and FFB certifications, we

also certified four of our kernel crushing plants,

one refinery and a biodiesel plant to RSPO’s

Supply Chain Certification System (SCCS).

INTERNATIONAL SUSTAINABILITY AND CARBON CERTIFICATION (ISCC)

The Group is diligently pursuing the

International Sustainability and Carbon

Certification (ISCC), which is the first

international certification system that can be

used to prove sustainability and greenhouse gas

(GHG) savings for biomass and bioenergy. ISCC is

oriented towards reducing GHG emissions, the

sustainable management of land, the protection

of natural biospheres and social sustainability.

To date, we have obtained ISCC for 15 mills and

a biodiesel plant. The achievement signifies

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BIODIVERSITY

FGV has committed to not undertake any new developments

in primary forests, on land containing one or more High

Conservation Values (HCVs) and areas with significant

peat. When there is suitable land for development, we

ensure due protection is given to the existing biodiversity,

cultural heritage and customary land use. At the same

time, we uphold the principles of free, prior and informed

consent with the local communities before developing the

land. Further protecting the nation’s flora and fauna, we

regularly organise Conservation Awareness Programmes

with the Wildlife Department and non-governmental

organisations (NGOs) and have signed memorandums of

understanding (MoUs) on several initiatives such as securing

biodiversity corridors, Rafflesia conservation and sun bear

research. Together with governmental institutions, NGOs

and institutions of higher learning, we are also conducting

research on effective conservation methods, especially for

endangered plant and animal species.

PROTECTING WATERWAYS AND RIPARIAN RESERVES

The commitment of all our plantations in safeguarding

the quality of rivers has led to positive results. In 2014,

our Sustainability Department analysed the water quality

in 41 out of 51 major river systems passing through our

plantations in selective regions and found no significant

deterioration. Since 2013, we have checked a total of

76 river systems, all with positive results.

Whilst ensuring cleaner rivers, widened riparian reserves

also add to our wildlife corridor initiative in Sabah. We plan

to establish a network of forest corridors to enable large

mammals such as the Bornean elephant and orangutan to

migrate safely between key forest habitats. Towards this

end, we are also involved with BCT and the Sabah Wildlife

Department to secure a mega biodiversity corridor in the

Lower Kinabatangan region, which FGV will contribute

a sum of approximately RM1.7 million over five years

RESEARCH AND DEVELOPMENT (R&D)

FGV has invested in strong R&D support services and have

reaped the benefits of high-yielding plant materials as well

as technological advances to enhance operations. Our seeds

are of such high quality that we have led as the market

leader in oil palm seed production and sale for over five

years. We have also invested in the latest technologies to

assist us in selecting materials with specific traits; and use in-

vitro propagation for mass production in our state-of-the-art

laboratories. We have more than 100 researchers working

on R&D applications for both upstream and downstream.

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to the joint venture. The five-year project is a first of its

kind to create a mega biodiversity corridor in the lower

Kinabatangan basin. Another key aspect of the project is

to provide a sustainable alternative livelihood for the local

communities living along the Kinabatangan River, through a

community homestay programme.

CLIMATE CHANGE AND MANAGEMENT OF GHG EMISSIONS

As planting on peat is perceived to contribute to GHG

emissions, FGV made a commitment on 16 June 2014 to

not develop any new area significant in peat. FGV is also

committed to reducing GHG emissions through operational

approaches such as methane capture, bio-composting and

the cogeneration of electricity from methane released by

palm oil mills effluent (POME). We convert waste from our

plantations and mills into biogas whilst producing palm

oil-based methyl ester (PME) for use in biodiesel.

Our 1.2MW biogas capture plant in Felda Umas in Tawau,

generates electricity for 3,000 households in our settlement,

where the 15,000 residents previously depended on

electricity from diesel-powered generators. In Maokil,

we successfully connected a 1.0MW biogas power plant to

the national grid. Our stand-alone Sahabat Biomass Power

Plant, which supplies clean steam energy and electricity

to neighbouring industrial installations, offices, a resort

and residential area, delivers the equivalent of more than

3,500 tons of CO2. This plant will soon be complemented

by our second large scale stand-alone biomass power

plant in Jengka 9, Pahang. The 12.5MW Jengka Advanced

Renewable Energy Plant consumes 320,000 tonnes of

biomass annually and is expected to feed the national grid

in 2015.

In terms of biodiesel, we made a significant breakthrough

when we successfully powered three oil tankers on a total

of 1,200km shuttle route with B30 biodiesel (consisting of

30 percent PME and 70 percent conventional carbon-based

diesel) from our FGV Transport depot in Gebeng, Kuantan to

our palm oil mill in Bukit Sagu, Pahang.

The Government currently requires biodiesel blends to

have at least 7 percent PME content. Our PME content,

which is more than four times higher than this minimum,

demonstrates our willingness to go beyond statutory

standards in our commitment to operate in the most

environment-friendly and sustainable manner.

Page 12: FGV Corporate Brochure

FGV places the highest importance on the safety and

health of all our employees and workers at all our offices,

plantations, mills, depots and other operations. We

recognise that our performance depends on our people,

and that their safety as well as well-being is paramount

to maintaining a high level of productivity.

STRIVING FOR EXCELLENCE IN SAFETY & HEALTH

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ONLINE ACCIDENT MONITORINGTowards realising Zero Fatality at some 250 operational premises across Malaysia, FGV has an online accident reporting system to

enable faster data input and comprehensive monitoring of incidents at our estates, mills, facilities and depots.

SAFETY IN EMERGING TECHNOLOGIESIn the area of green technologies, FGV is working closely with the Department of Occupational Safety and Health to develop the

National Biogas Safety Policy and Guidelines.

STRATEGIC HSE FRAMEWORKOur HSE framework is in line with global best practices and provides a robust calendar of activities - meetings, site visits, workplace

inspections, audits, training courses, investigations, events, campaigns – at both head office, regional centres and operational

workplaces all year round.

ESCALATING SAFETY STANDARDSFGV’s aspires to emulate the safety standards in the oil and gas industry. In this respect, we make every effort to comply with all

statutory requirements. Many of our subsidiary companies also have obtained the Occupational Health and Safety Assessment Series

(OHSAS) 18001:2007 certification.

IN-HOUSE CAPACITY BUILDING PROGRAMMEFGV has 34 Safety and Health Officers (SHO) who are registered with and have been certified competent by Department of

Occupational Safety and Health (DOSH). This is close to our target of having one safety professional for every 500 employees.

SAFETY OUTREACH PROGRAMMESFGV is the first public sector company to implement Komuniti Sihat Perkasa Negara (KOSPEN) to reduce the incidence of Non

Communicable Diseases such as heart problems, strokes and diabetes. The health screening and early intervention programme

involves 3,000 employees, workers and settler families. FGV is also one of 16 companies nationwide selected to spearhead the

Ministry of Human Resources’ OSH-in-Schools programme under its OSH Master Plan 2015. The programme pairs one school and one

mentor-organisation per state to introduce OSH practices in schools as well as integrating it into their learning modules.

Page 14: FGV Corporate Brochure

❙ Felda Global Ventures Plantations Sdn Bhd

❙ Felda Global Ventures Plantations (Malaysia) Sdn Bhd

❙ PT Citra Niaga Perkasa

❙ Pontian United Plantations Bhd

❙ Felda Palm Industries Sdn Bhd

❙ FNI Biofuel Sdn Bhd

❙ PT Temila Agro Abadi

❙ Asian Plantation Limited

❙ Trurich Resources Sdn Bhd ^

❙ FTJ Biopower Sdn Bhd ^

❙ Kuala Muda Estates ^

❙ Felda Global Ventures Rubber Sdn Bhd

❙ Felda Rubber Industries Sdn Bhd

❙ Feltex Co Ltd

❙ PT Felda Indo Rubber

❙ FGV CVC (Cambodia) Co Ltd

❙ Felda Global Ventures Downstream Sdn Bhd

❙ Twin Rivers Technologies Holdings, US

❙ TRT ETGO

❙ FGV Biotechnologies Sdn Bhd

❙ Felda Kernel Products Sdn Bhd

❙ Delima Oil Products Sdn Bhd

❙ Felda Vegetable Oil Products Sdn Bhd

❙ Felda Global Ventures Cambridge Nanosystem Limited

❙ FPG Oleochemical Sdn Bhd ^

❙ Felda Iffco Sdn Bhd ^

PALM

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PALM

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Felda Global Ventures Holdings Berhad (FGV)

^ JV or Associated company

Page 15: FGV Corporate Brochure

BUSINESS CLUSTERS

❙ Felda Global Ventures Sugar Sdn Bhd

❙ MSM Holdings Bhd

❙ MSM Prai Bhd

❙ MSM Perlis Sdn Bhd

❙ MSM Logistics Sdn Bhd

❙ Felda Holdings Bhd

❙ FGV Trading Sdn Bhd

❙ Felda Marketing Services Sdn Bhd

❙ Felda Johore-Bulkers Sdn Bhd

❙ Felda Transport Services Sdn Bhd

❙ Langsat Bulkers Sdn Bhd

❙ Felda Bulkers Sdn Bhd

❙ Felda Grains Terminal Sdn Bhd

❙ PT Patisindo Sawit Sdn Bhd

❙ F.W.Q. Enterprises (Pvt) Ltd

❙ Felda Global Ventures R&D Sdn Bhd

❙ FGV R&D and Agri Services Sdn Bhd

❙ FGV Applied Technology Sdn Bhd

❙ Felda Agricultural Services Sdn Bhd

❙ FPM Sdn Bhd

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Page 16: FGV Corporate Brochure

Going greenSustainability is the way forward at

FGV. We engage in best practices,

meet world standards and innovate

green initiatives throughout our

upstream operations. As the world’s

3rd largest oil palm estate operator,

we commit to advancing a greener

future.

Page 17: FGV Corporate Brochure

Producing world class certified crude palm oil with sustainability and reliability

Palm Upstream Cluster is FGV’s largest revenue earner and

forms the core of the company. With a total land bank of

more than 450,000 hectares, Palm Upstream is responsible

for FGV’s status as the world’s largest CPO producer which

produces more than three million tonnes of CPO annually.

Palm Upstream Cluster forms the core of FGV and is our

largest revenue earner. It is also the foundation for

FGV’s global growth.

Page 18: FGV Corporate Brochure

FGV is the world’s third largest oil palm

estate operator, managing more than

450,000 hectares across Malaysia and

Kalimantan, Indonesia.

We process over 15 million tonnes of fresh

fruit bunches (FFB) annually; 5 million tonnes

from our own plantations, the balance from

FELDA settlers and independent suppliers.

We also output 3 million tonnes of crude

palm oil (CPO) annually from 71 palm

oil mills, more than any other producer

worldwide, making us the world’s largest

producer of CPO.

In Malaysia, the largest plantations are

located in Pahang and Sabah. FGV owns

Pontian United Plantations Berhad (PUP)

which operates 15,161 hectares of oil palm

plantation in Sabah.

In Indonesia, FGV’s activities are focused in

Kalimantan through PT Citra Niaga Perkasa,

a company that owns 14,385 hectares of

land. Through our subsidiaries PT Temila

Agro Abadi and PT Landak Bhakti Palma,

FGV owns another 21,037 hectares of land in

West Kalimantan.

Continuous expansion initiatives are

embarked on to secure CPO and feedstock

supplies for our downstream objectives.

To date, FGV is at the tail end of upgrading

all its mills to meet RSPO and other relevant

world-class certification.

Page 19: FGV Corporate Brochure

PALM UPSTREAM

As the world’s largest CPO producer and

third largest oil palm operator, we are

already well placed in the industry globally.

Aligned with our efforts to drive continuous

improvements in our plantations, we are

rolling out best management practices. For

example in harvesting and pruning, we are

encouraging the use of new tools such as

graphite harvesting poles and innovative

ablation methods and tools.

New technologies such as Unmanned Aerial

Vehicles (UAV) and a tablet-based Plantation

Micro-Macro Programme (PMMP) will allow

us to enhance estate management. These

innovations assist us to monitor and improve

efficiency and productivity in the field and

increase FFB yield, while giving us the edge

over those that are using traditional farm

management practices.

Furthermore, having embarked on an

aggressive replanting programme in 2007

we can expect that by 2020, we will achieve

our target of 60 percent prime palm land

thereby improving our yields significantly.

We are expanding our landbank by acquiring

brownfield plantations both within Malaysia

and abroad.

KEY GROWTH TARGET:FGV is on track to have the world’s largest

land bank by 2020 and maintain its status as the world’s top CPO producer

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Fruitful potentialIn terms of versatility, oil palm is the

cream of all crops. Other than oils

and fats, it can blend biodiesel to

fuel lorries, buses and power stations.

We can extract Vitamin E for use in

nutraceuticals. Then we can innovate

Carbon nanotubes and Graphene

to revolutionise diverse industries

– including the manufacturing of

tennis racquets.

Page 21: FGV Corporate Brochure

Pioneering breakthrough palm-based products for new markets in high growth sectors

Palm Downstream Cluster safeguards the upstream operations by

providing a guaranteed uptake of CPO for palm-based downstream

activities which include oleochemicals, biodiesel, oils, fats and fast

moving consumer goods (FMCG).

Leveraging on his secured pipeline of CPO feedstock, we are able

to advance and expand the potential of palm oil by producing

innovative and wider profit margin products such as Tocotrienol,

Graphene and specialty fats and other palm based derivatives. These

have paved our way into new market segments in the high growth

sectors of Aviation, Oil & Gas, Cosmetics and Food Application.

Page 22: FGV Corporate Brochure

Since its establishment, the Palm

Downstream Cluster has achieved continuous

milestones, and the momentum continues.

Today, it is a market leader in the biodiesel

industry with a biodiesel refinery in Malaysia

that produces certified Palm Methyl Ester

for local and international markets such as

Europe, United States and China.

Its Saji-branded cooking oil has successfully

penetrated the cooking oil market in

Myanmar, Philippines, Laos, Cambodia,

Vietnam and Afghanistan. The specialty

fats and FMCG product line continues to

grow with the introduction of a variety of

consumer products including instant noodles,

mayonnaise, creamer, vanaspati and peanut

butter.

Via strategic investment in Twin Rivers

Technologies-US, FGV’s fully owned

subsidiary in the United States; and existing

homegrown Felda Procter & Gamble (FPG),

a joint venture, a with Procter & Gamble in

Malaysia, FGV is optimising an increasingly

viable oleochemical business.

Through FGV Cambridge Nanosystems

Limited (FGV CNS), FGV currently produces

high technology products based on

carbon nanotubes for super high strength,

lightweight, high conductivity applications

in electronics, aeronautical, oil & gas and

automotive industries.

FGVD has entered into a joint venture

with Lipidventure Sdn Bhd (LVSB) in

producing Tocotrienols (Vitamin E). Capable

of producing 75,446 kg of high quality

Tocotrienols per year, the new purification

plant at Kuantan integrated Biopark is

expected to be the largest plant of its kind

in Malaysia once operations start in 2016.

Products will be marketed to countries like

U.S, Japan, Australia, China and India.

Higher end products like Tocotrienol capsule

and Tocotrienol products for food and

beverage industries are also in the pipeline.

Page 23: FGV Corporate Brochure

Palm Downstream Cluster strives for a

leading position globally in industrial fats

and regional heavyweight status in palm-

based consumer goods. We are also pursuing

a significant market share in the biodiesel

and renewable energy market globally.

Our portfolio of consumer goods continues

to grow: by both adding to our already-

popular products in Fast Moving Consumer

Goods (FMCG), as well as entering into new

arenas. Our staple products, Saji, Tiga Udang

cooking oils and Seri Pelangi margarine,

are now complemented by new brands such

as Sunbear peanut butter, Adela margarine

spread and Sajimee instant noodles.

We have also recently introduced a personal

care brand, Purich, on our journey to achieve

a top five position in Consumer Goods across

South East Asia and South Asia.

Moving forward, our downstream business

also aims to capture higher margins and

high-growth products in the specialty

ingredients segment and optimise our

oleochemical position by maximising our

position in the United States as the third

largest oleochemical producer in North

America (TRT US) and existing partnership

with Procter & Gamble (P&G) in Malaysia.

PALM DOWNSTREAM

KEY GROWTH TARGET:FGV aims to steadily strengthen its

market share in the global oleochemicals, oils and specialty fats and FMCG markets

Page 24: FGV Corporate Brochure

Bouncing backMalaysian rubber is back in fashion,

fast gaining favour with global

tyre manufacturers. In part, no

doubt, because it’s far superior to

its synthetic, petrochemical-based

counterpart, affording better grip in

the wet, less rolling resistance and

less noise, but mostly because it’s

completely renewable. Indeed,

driven by the promise of zero

pollution, our business is now on a

roll once more.

Page 25: FGV Corporate Brochure

Stretching the potential of rubber from upstream, midstream to downstream possibilities

FGV’s foray into the resilient rubber industry is part of our

crop diversification programme to rebalance our reliance

on palm oil. As processed rubber continues to enjoy a

growing global market, Rubber Cluster is poised to tap new

opportunities by expanding its operations and leveraging on

our strengths in the industry.

Page 26: FGV Corporate Brochure

Rubber Cluster was conceptualised to

stepchange the trajectory of the Group’s

current rubber processing businesses into a

leading integrated rubber player. Led by FGV

Rubber Sdn Bhd (FGVR), Rubber Cluster has

made significant contribution to the natural

rubber industry backed by over 6 decades of

experience in upstream plantation followed

by ventures in the midstream segment.

In tandem with the Group’s business plan,

Rubber Cluster focuses on expanding

upstream land bank and processing capacity.

Plans to venture into the downstream

segment are also in the pipeline as Rubber

Cluster seeks to expand its presence across

the natural rubber value chain.

We currently manage a total of

approximately 14,000 Ha of rubber

plantation and operate 5 midstream rubber

processing facilities plus one specialised

processing facility for green rubber

production. Most of the raw material

sourced is from within the Group’s rubber

plantations.

Rubber Cluster also has overseas presence

with rubber processing facilities in Thailand,

Indonesia and Cambodia. In addition, we

have a strategic partnership in Myanmar to

explore opportunities of expansion both in

upstream and midstream.

Page 27: FGV Corporate Brochure

Given the increasing awareness and concern

for the environment, buyers are placing high

priority on ‘green’ products. After working

very closely with the Malaysian Rubber

Board (MRB) and various consultation

teams, Rubber Cluster has ventured into

commercialisation of Ekoprena™ and

Pureprena™ – two trademarked variations

of Green Rubber that have a host of diverse

market applications.

EKOPRENA™ is a form of Epoxidised Natural

Rubber and an established class of speciality

rubber. Its properties provide a good wet

grip, low rolling resistance and low noise,

it is ideal for use as tyre treads especially for

passanger cars and trucks. Being oil resistant

and gas permeable it is also ideal for

producing bladders, inner tubes, tyre lines,

hoses, seals, connectors and tubes.

RUBBER

KEY GROWTH TARGET:FGV is on track to expand into more value

added midstream and downstream products and to be a global processed rubber player by 2020

PUREPRENA™ is a new generation of

Deproteinised Natural Rubber, produced

by treating fresh natural latex with an

industrial enzyme that hydrolyses all

natural-occurring proteins in the latex into

water-soluble forms. It is suitable for use in

hydromounts, large absorbers, suspension

bushes and helicopter rotor bearings. It also

has low water absorption and low protein

and ash contents; making it ideal for use in

underwater, medical, pharmaceutical

and food applications.

Having signed a Technology Transfer

Agreement with MRB to commercialise

Ekoprena™ and Pureprena™, Rubber Cluster

has started production of Green Rubber

at FGVR’s Palong 8 Processing Facility.

Page 28: FGV Corporate Brochure

Sweet stuffWe’re the leading producer of refined

sugar in Malaysia, commanding more

than 60 percent market share. But

there’s more to us than mere size.

Quality wise, we’re the benchmark;

more than mere size, we offer a

consistency of grain size, colour and

moisture content few can match. Our

sugar, it is said, flows like water; a fact

that should work in our favour when

the output reaches 3.25 million tonnes

per annum come 2025.

Page 29: FGV Corporate Brochure

Growing in presence from Malaysia’s sugar leader to an ASEAN trailblazer

Through its listed subsidiary MSM Malaysia Holdings

Berhad (MSM), FGV is the leading refined sugar producer

in Malaysia with almost two-thirds domestic market

share, involved primarily in the production of refined

sugar products, with an annual production capacity of

over 1.1 million tonnes.

Page 30: FGV Corporate Brochure

MSM Holdings continues to expand and

optimise the businesses of its two operating

subsidiaries – MSM Prai Berhad (formerly

known as Malayan Sugar Manufacturing

Company Berhad) and MSM Perlis Sdn Bhd

(formerly known as Kilang Gula Felda Perlis

Sdn Bhd). These subsidiaries are pioneers

in Malaysia’s sugar industry having been

established in 1959 and 1971 respectively.

With global demand for sugar being driven

by double digit growth, FGV is expanding

its global presence through acquisitions and

joint ventures with regional powerhouses

and related businesses across the sugar

supply chain.

To date, FGV has taken steps to be in control

of the complete sugar value chain, venturing

into upstream and downstream activities

as well as the futures business. With these

drivers as well as the commencement of a

trading office in Dubai in second quarter of

2015, FGV’s sugar business will continue to

strengthen its competitiveness in domestic

and export markets, and move it closer

towards its goal of becoming Southeast

Asia’s premium sugar refining and trading

company.

Page 31: FGV Corporate Brochure

Sugar Cluster is geared up for domestic and

global expansion and has boldly placed the

key growth focus on downstream expansion

to boost capacity building and to build a

strong value chain footprint. Our investment

in the set-up of the Dubai trading operation

will add a strong arm to establish our

own raw sugar trading business; while the

upcoming Johor refinery project will be set

to ramp production capacity to 3.25 million

tonnes of refined sugar per year, from the

current 1.1 million tonnes.

While actively sourcing for further

opportunities, we are seeking better

operational efficiencies by focusing on

SUGAR

KEY GROWTH TARGET:FGV is poised to become ASEAN’s

largest Sugar hub and produce 3.25 million tonnes of sugar per annum by 2025

cost reduction initiatives, optimising asset

utilisation, and implementing improved

technologies from sourcing to production

chain; in logistics and distributions.

In the pursuit of operational excellence,

we have launched a performance excellence

programme for our employees as our anchor

initiative to develop a customer focus

mindset among all of our teams. This is also

a systematic approach to establish and to

sustain excellent performance at all levels.

Page 32: FGV Corporate Brochure

Future-focusedVision. That’s what first inspired us

to set up an R&D and Agri-services

centre over 40 years ago. Today,

it is one of the largest of such

establishment for oil palm in the

world and has long pioneered

cultivation of world-class oil palm

planting materials. Our latest

research has produced a Ganoderma

fungus disease-tolerant palms that

can be grown in areas of high disease

incidence. As it gains acceptance,

we look forward to our next big idea.

Page 33: FGV Corporate Brochure

Generating cutting-edge technologies across all facets of FGV

FGV’s world class R&D and Agri-Services

Cluster is anchored on four decades of

research and development. The Cluster’s

key objective is to generate cutting-edge

agri-business technologies to enhance

operational performance and commercial

utilisation across all facets of FGV.

The company’s award-winning Yangambi

oil palm planting material, which has

40 percent market share in Malaysia,

is just one of R&D’s innovative products.

Page 34: FGV Corporate Brochure

The R&D and Agri-Services Cluster was

incorporated on 10 September 2014 to

consolidate over four decades worth of

research expertise towards becoming

a premier frontrunner in the oil palm

research. This has culminated in one of South

East Asia’s largest biotechnology centre,

specialising in production of oil palm clones

with specific traits. The centre is led by a

team of highly specialised scientists.

Its activities support internal growth across

all Clusters. These comprise improving the

yield of selected agri crops through breeding,

tissue culture agronomy, crop protection and

in a sustainable manner; optimising waste

and by-products for use in generating new

products with higher-growth, higher-margin

industries; and the provision of high quality

agro-based products and services.

R&D and Agri-Services Cluster focus in

bio-molecular marker research has led to

the pioneering of marker assisted oil palm

breeding and selection which will ensure that

its current award winning Felda Yangambi

brand continous to remain as a market

leader. An Applied Technology Division

was launched in 2014, to expand R&D and

Agri-Services Cluster focus on applying new

technologies such as electronics, wireless

sensor technology, geographical information

systems, remote sensing and automation and

mechanism of daily operations to improve

productivity and efficiency in FGV’s palm

operations.

Leveraging on the R&D and Agri-Services

Cluster initiatives, especially in our upstream

business, FGV intends to increase yield and

efficiency, reduce production costs, better

ensure environmental sustainability and help

increase profits over time.

Page 35: FGV Corporate Brochure

Through the introduction of new innovative

products to the market, FGV is creating

uncontested value for its products.

In Palm Oil downstream for example, R&D

and Agri-Services Cluster helped to diversify

our portfolio of quality food and innovative

non-food products. Through Felda Global

Ventures Research & Development Sdn Bhd,

FGV is Malaysia’s premier oil palm seed

producer – supplying 40 percent of the

country’s annual seed requirements. FGV is

already at the forefront of R&D in oil palm

breeding biotechnology, tissue culture,

agronomy and crop protection.

By inventing new high-end, niche products

such as Carbon Nanotubes currently and

green chemicals in the future, we continue

to create new market spaces.

Partnering with Cambridge Nanosystems

Limited, we produced the world’s first

high-grade Carbon Nanotubes and Graphene

– a ‘wonder material’ that is stronger

than diamonds yet more conductive than

copper. These unique properties are set to

transform manufacturing processes and the

performance of thousands of electronics and

consumer goods in the near future.

RESEARCH & DEVELOPMENT AND AGRI-SERVICES

KEY GROWTH TARGET:R&D and Agri-Services Cluster will expand its

collaboration with both international and local scientific communities in order to achieve its goal to be the world’s pre-eminent R&D Centre of

Excellence for palm oil, by 2020

Page 36: FGV Corporate Brochure

Fast-trackingThe Trading, Marketing and Logistics

(TML) Cluster fortifies FGV’s Trading

& Marketing arm’s aspiration to

accelerate vegetable edible oils and

fats transactions. Set to be a major

revenue contributor to the Group,

Trading & Marketing’s activities are

enablers of TML Cluster logistics

and storage support services across

the business chain and advances the

Group as a globally diversified agro-

commodity player.

Page 37: FGV Corporate Brochure

Driving efficiency across the entire organisation through integrated supply chain support

TML Cluster is a profitable, multi-billion ringgit operation and is

tasked with connecting and controlling the flow of assets across

FGV’s businesses via 3 main sub-clusters of Trading, Marketing and

Logistics. The profitable, multi-billion ringgit operation possesses the

world’s largest bulking and storage facilities for vegetable edible oil.

It is further tasked with connecting and controlling the flow of assets

across FGV’s businesses, driving group-wide efficiencies.

Page 38: FGV Corporate Brochure

The Trading & Marketing (TM) business is the

lead revenue contributor to the TML Cluster,

able to generate high volume of external oil

trading to established and new markets. On

the logistics front, we are embarking on end

to end logistic as a high value Multimodal

Transport Operator (MTO) and exploring an

asset-light approach to maximise our bottom

line wherever possible. Storage complements

the Group’s Logistic and Trading activities,

locally and overseas.

TML Cluster is now transforming as the

growth engine of the FGV flagship; thrust

forward by strategic TM initiatives via an

asset-backed mode, coupled with trading of

externally sourced palm and other edible oils.

TM activities are supported by a well defined

risk management and forecasting system

while operational efficiency is achieved via

a robust shipping network of chartered sea

going vessels. This strategic TM effort is an

enabler in making FGV a world class leader in

the palm oil trade.

Going further into completing the supply

and value chain landscape, TML Cluster

activities are supported by both standard

and MTO activities with proven storage and

handling capabilities; providing impetus to

enhance the performance and improvement

of FGV’s core activities.

FGV has built the world’s largest and most

advanced bulking facilities for vegetable

oil terminal in Malaysia handling up to

40 percent of Malaysia’s total palm oil

exports. Storage capacity continues to

expand through a business model that

focuses on strategic partnership with port

operators, various palm oil players and

storage operators. This not only supports our

high volume CPO supply but also provides

sufficient storage requirements for other

edible oils to meet world demand.

TML Cluster operations emphasise on cost

containment, optimisation of resources and

increased revenue streams. Looking ahead,

TML Cluster is forging partnerships with

overseas integrated logistics providers in

key export markets. Furthermore, with the

recent establishment of FGV Trading Sdn

Bhd to focus on Trading and Tolling business,

we are on the fast track to becoming an

international palm oil trader.

Page 39: FGV Corporate Brochure

In expanding its business, the TML Cluster

will build its international capacity further by

partnering with overseas integrated logistics

providers. Adopting best practices in its

trading and marketing activities, TML Cluster

will create a fully functional asset-backed

business and will allow FGV to leverage

on its agri-business origination-upstream

capabilities and tap into new and sustainable

revenue streams.

TRADING, MARKETING AND LOGISTICS

KEY GROWTH TARGET:TML Cluster strives to be a

Global Leader in trading, logistic and storage by 2020

Transport &Logistics

Storage FJB Group

Felda BulkersSdn Bhd

Felda TransportServices Sdn Bhd

Marketing&

Trading

FGV TradingSdn Bhd

Felda GrainsTerminal Sdn Bhd

TML CLUSTERCore Business

Langsat BulkersSdn Bhd

PT. PatisindoSawit (Indonesia)

Felda MarketingServices Sdn Bhd

Page 40: FGV Corporate Brochure

1971FELDA embarked on its first joint

venture with Perlis Plantation Berhad

(PPB) to establish Kilang Gula Felda

Perlis Sendirian Berhad (KGFP), a

sugar milling and refining facility.

2004FELDA commissioned the Sahabat

biomass power plant in Lahad Datu,

Sabah – the first Clean Development

Mechanism (CDM) project in the

world that runs entirely on empty

fruit bunches (EFB).

1956The Land Development Ordinance

1956 came into force on 1 July and

FELDA was established with a starting

capital of RM10 million.

A total of

112,635 SETTLERSwere taken in between

1957 – 1990.

1995FELDA HOLDINGS SDN BHD

(now Felda Holdings Bhd or FHB)

was set up as FELDA’s commercial arm.

ALL FELDA COMPANIES AND

CORPORATIONS BECAME SUBSIDIARIES

UNDER FHB.

1978Formation of Agricultural Services

Corporation (now Felda Agricultural

Services Sdn Bhd) to produce planting

stock for oil palm.

2007FELDA incorporated Felda GlobalVentures Holdings Sdn Bhd (FGV) to operate as a commercial

arm for FELDA’s overseas investments

in upstream and downstream palm

oil businesses as well as other agri-

business.

2011MSM Malaysia Holdings Berhad,

a subsidiary of FGV, was listed on

the Main Market of Bursa Malaysia

Securities Bhd. The exercise raised

RM796 millionIt was the first company within

the Felda Group to go public

in Malaysia.

2013FGV Cambridge Nanosystems Limited

(FGV CNS) produces high grade

Carbon Nanotube and Graphene.

Ties were formed with Lipid Venture

Sdn Bhd to produce and market

tocotrienol (Vitamin E).

Both derived from

by-products of palm oil.

2012On 28 June, FGV was listed on Bursa

Malaysia. The initial public offering,

which was the world’s third largest in

2012, raised RM10.4 billion.

FELDA PPB

MILESTONES

Page 41: FGV Corporate Brochure

1985Felda Rubber Corporation Industries

(now Felda Rubber Industries Sdn

Bhd) was set up to operate rubber

processing factories and produce

latex concentrate and rubber.

1980FELDA established an investment

co-operative (Koperasi Permodalan

Felda or KPF) to provide settlers and

FELDA employees opportunities to

invest in FELDA companies.

2008FGV acquired FELDA’s investments

in North America including Twin

Rivers Technologies Holdings Inc.

(TRT Holdings).

1992COMMERCIAL

PLANTING OPERATIONS

began under

FELDA PLANTATIONS SDN BHD.

2009FGV acquires

50%equity interest

in FELDA IFFCO SDN BHD (a joint venture with IFFCO Holdings Ltd)

and TRURICH RESOURCES SDN BHD (a joint venture with Tabung Haji).

2010The Felda Group became the world’s

first smallholder organisation to

attain the Roundtable on Sustainable

Palm Oil (RSPO) Certification.

2014FGV was the recipient of 2014 Frost &

Sullivan Malaysia Palm Oil Plantation

Company of the Year for the second

consecutive year.

NORTH AMERICATWIN RIVER TECHNOLOGIES

HOLDINGS INC

RSPO 1stIN THE WORLD

Page 42: FGV Corporate Brochure
Page 43: FGV Corporate Brochure

By leveraging on opportunities with ingenuity and expanding our presence and capabilities,

FGV continues to advance across the global agricultural value chain.