HARNESSING SYNERGIES.
DELIVERING VALUE.
A paradigm shift is in the works at FGV. Our business transformation from an oil palm heritage towards a dynamic agribusiness player is gaining strong traction. We have been taking incremental steps towards this evolution and now is the right time to accelerate growth and optimise our potential.
We are harnessing synergies across the plantation business value chain right through the parallel food marketplace, as well as relevant service sectors. Going forward, we will harness further synergies through collaboration with key stakeholders including the smallholders in ensuring the fruits of our labour reach all facets of our society.
Although the bold steps we are taking are redefining our future, our goal remains the same; To maximise value delivery to a diverse base of stakeholders as a flagbearer of Malaysian agribusiness.
Image: An aerial view of FGV's estate in Maokil, Johor.
Clean and meaningful, this minimalist design approach captures the sense of dynamic advancement within FGV. The synergising lines form escalating wave charts to illustrate heightened performance levels. The lines making up the wave represent the synergies within the FGV Group of Companies and shows the shared goals towards higher value and higher target impacts.
Inside This Report
2
About this Report
CHAIRMAN'S COMMENTARY
4
FGV's Chairman Address 2021
ABOUT FGV
10 FGV's 2021 Highlights
12 Our Story
14 Global Presence
16 Corporate Details
17 FGV's Key Businesses
18 Organisational Structure
20 5-Year Financial Highlights
VALUE CREATION
24 Material Matters
26 Stakeholders Engagement
30 Linking Material Matters to Risks and Strategy
32 Our Value Creation Model
34 Operating Landscape
36 Business Strategy
14TH
ANNUAL GENERAL MEETING
MANAGEMENT DISCUSSION & ANALYSIS
44 Group Chief Executive Officer's Strategic Review
48 Group Financial Review
55 Group Business Review
HOW WE ARE GOVERNED
84 At a Glance - Board of Directors
86 Board of Directors' Profile
94 At a Glance - Group Management Committee
95 Group Management Committee's Profile
103 Corporate Governance Overview Statement
140 Statement on Risk Management and Internal Control
REINFORCING SUSTAINABILITY
146
Sustainability Statement
ADDITIONAL INFORMATION
154 Share Price Movement
155 Financial Calendar
156 Analysis of Shareholdings
160 Top 10 Properties of FGV Group
162 Additional Disclosure
• Utilisation of Proceeds
• Non-Audit Fees
• Material Contracts
• Long Term Incentive Plan
• Share Issuance Scheme
• Recurrent Related Party Transaction of Revenue or Trading Nature
171 Application of the Principles and Practices of the Malaysian Code on Corporate Governance 2021 (MCCG 2021)
174 Notice of 14th Annual General Meeting
Thursday, 23 June 2022 11 a.m.
https://meeting. boardroomlimited.my (virtual meeting platform)
177 Statement Accompanying Notice of 14th Annual General Meeting
183 Administrative Details
• Proxy Form
2
FGV HOLDINGS BERHAD
ABOUT | VALUE | MANAGEMENT |
FGV | CREATION | DISCUSSION & ANALYSIS |
About this Report
FGV's 7th Annual Integrated Report covers performance for the year ended 31 December 2021. This Report adheres to the principles of integrated reporting as established by the International Integrated Reporting Council. Going forward, we will stay guided by the evolving reporting requirements to achieve a more coherent corporate reporting system in tandem with global reporting standards.
By continuously enhancing our reporting disclosures, we target to help businesses and investors develop a shared understanding of how the value of FGV Holdings Berhad (FGV) is created, preserved and shared among our stakeholders.
This approach clearly articulates the current market infrastructure needed to develop, manage and communicate a strategy that creates long-term value and drives higher performance.
To produce this Annual Integrated Report (AIR), we adhered to Malaysia's reporting requirements, including the Malaysian Code on Corporate Governance 2021 and the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. In addition, we continue to strive towards Global Reporting Initiative Standards benchmarks on sustainability reporting.
2021 REPORTING SUITE
Annual Integrated Report 2021
Audited Financial Statements 2021
Sustainability Report 2020/2021
For a more complete understanding, this Report should be read together with the Reporting Suite above, as well as other information made available on our website atwww.fgvholdings.com.
REPORTING SCOPE AND BOUNDARIES
DETERMINING OUR MATERIAL MATTERS
This Report contains information on the value-creating activities that are material to the Group. Hence, the Report has been confined to the developments throughout 2021 from 1 January 2021 to 31 December 2021 (FY2021). Unless otherwise stated, it covers all of FGV's businesses in Malaysia and the other countries we operate in. This includes operations in which we have full control of subsidiaries and joint ventures. We also report on other developments or information that may transcend our reporting boundaries but are considered highly material to the Group's performance.
We prepared this Report based on the determination of our FY2021 material matters to ensure we provide a fair, accurate and comprehensive account of our strategy, performance and prospects. It also takes into account our response to the material matters in the economic, environmental, social and governance aspects of our business.
During the year in review, we conducted a Materiality Assessment with the support of an independent consultant, engaging internal and external stakeholders to gain their views on our Group's material matters. This process involved a review of our Materiality Matrix to determine the factors impacting our delivery of value in FY2021.
As in previous years, the Report provides information in a comparative format for easy referencing and review. Throughout this Report, we have also embedded our sustainability disclosures to demonstrate how we support value creation and how important sustainability is to the Group. Furthermore, this Report includes all risks and opportunities material to our sustainability but does not estimate or forecast future impacts of our sustainability-related material matters.
Following this, we developed the content of the AIR by taking into account qualitative and quantitative considerations as well as factors that may affect our ability to achieve our strategic objectives and maintain the sustainability of our business. We also considered the issues discussed in reports presented to the Board, reported risks and our stakeholders' interests. Additionally, we factored in the material impacts of the countries and regions where we operate.
HOW WE ARE GOVERNED
REINFORCING SUSTAINABILITYADDITIONAL INFORMATION
ANNUAL INTEGRATED REPORT 2021
3
REPORTING INTEGRITY
In upholding the quality of this Report, stringent efforts have been taken to ensure the information presented is reliable, consistent and complete. The Reporting Committee has reviewed this Report to assure its compliance with the International Integrated Reporting Council Framework and its fair representation of the Group's performance against targeted value creation outcomes.
As part of our governance practices, this Report has further been reviewed by the Audit Committee and together with the Audited Financial Statements 2021, submitted to the Board for its final approval.
The external auditors have further supported our assurance by providing external assurance on our Audited Financial Statements.
They have read all other information and made certain that the material is consistent with the Audited Financial Statements or their knowledge obtained in the audit. The external auditors have also provided a limited assurance review on our Statement on Risk Management and Internal Control.
FORWARD-LOOKING STATEMENTS
Where necessary, we have used forward-looking statements related to our Group's plans, objectives, strategies, future operations and performance. Such statements should not be taken as guarantees of the Group's future results as we remain subject to various possible scenarios of risks, uncertainties and assumptions. Actual results and outcomes may significantly differ from forward-looking statements. We make no expression or implied representation or warranty that the results targeted by these forward-looking statements will be achieved.
OPPORTUNITIES FOR FEEDBACK
We invite stakeholders and the public to offer their feedback on our reporting in order to uplift our reporting practices and standards. You may submit your feedback by phone calls or email to our Investor Relations Department via the following channels:
03-2789 0000fgv.investors@fgvholdings.com
NAVIGATING THROUGH THIS REPORT
All icons featured here are Navigation Icons that will be consistently featured within our Report as a guide towards better integration and presentation of information.
OUR SIX CAPITALS
Financial
Natural
ManufacturedIntellectual
Human
Social & Relationship
OUR STRATEGIC THRUSTS
Operational Improvement
Product & Market
PenetrationNew Growth
AreaFinancial & Capability Building
2021 KEY MATERIAL MATTERS
Upholding Human Rights & LabourOperational Excellence
Sustainability Certification
StandardsGovernance,
Occupational
Ethics & Integrity
Health & SafetyClimate ActionTraceability, Responsible
Sourcing & Supply Chain Management
OUR TOP RISKS
Trading & Market Risk
Labour RiskSustainability
RiskPandemic
Cyber Security
Risk
Risk
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Disclaimer
FGV Holdings Bhd published this content on 22 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 08:44:02 UTC.