Felda Global Ventures Holdings Berhad is Malaysia's leading global agribusiness company and the world's largest producer of crude palm oil. It operates palm oil plantations and mills worldwide as well as downstream palm oil refining and processing. Listed on the Malaysian stock exchange in 2012, FGV focuses on palm upstream and downstream operations along with rubber, sugar, research and development, and other agricultural businesses. It aims to be one of the top 10 global agribusiness conglomerates by 2020.

1. About Felda Global Ventures Holdings Berhad
 Felda Global Ventures Holdings Berhad (FGV) is a Malaysia’s leading global
agribusiness and is the world’s largest producer of crude palm oil (CPO). FGV have
operations in more than 10 countries across Asia, North America and Europe.
 Listed on the Malaysia Stock Exchange since June 2012, our focus spans six core
business clusters: Palm Upstream and Downstream, Rubber, Sugar, R&D and Agri-
services, Trading & Marketing, Logistics & Others (TML).
 FGV as part of FELDA Group, is the world’s largest palm oil producer and oil palm
plantation operator, based on planted hectares.
 Incorporated in Malaysia as a private limited company 2007, FGV initially operated
as the commercial arm of Federal Land Development Authority (FELDA). On 28
June 2012, the company was listed on the main market of Bursa Malaysia Securities
Berhad as Felda Global Ventures Holdings Berhad. As at 31 December 2013 our
market capitalisation is RM16.6 billion
 FGV is the world’s largest Crude Palm Oil (CPO) producer and the second largest
Malaysian palm oil refiner.
 With more than 19,000 people in the group from our subsidiaries as well as joint-
venture companies and associates, we aspire to be one of the top 10 agri-business
conglomerate in the world by 2020.

2. Vision and Mission
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

3. What Is the Business And History
Felda Global Ventures Holdings Berhad, an investment holding company, is primarily
engaged in agri-business worldwide. The company’s Plantation segment cultivates, harvests,
produces, and processes fresh fruit bunches; and sells crude palm oil (CPO) and palm kernel
(PK). Its downstream segment refines CPO; fractionates refined bleached deodorized palm
oil and palm olein; crushes PK; processes and sells biodiesel products; and produces oleo
chemicals, such as fatty acid and glycerine, as well as produces consumer end products. The
company’s Sugar segment refines sugar; and markets refined sugar and molasses. Its
Manufacturing, Logistics & Others segment provides bulking and transportation facilities and
services, engineering, information technology, security, and travel services; and sells planting
materials.
This segment is also engaged in the production and processing of rubber and fertilizers; and
research and development activities. The company is also involved in the operation of
residential real estate properties; provision of shared, lorry transportation, and treasury
services; processing canola seed and soybean and its related by-products; operation,
management, and maintenance of a railroad service; production of rubber cup-lumps;
commodity trading; management of plantation estates and other biological assets; and
processing of latex concrete.
In addition, it produces, manufactures, markets, sells, and trades carbon nanotubes and
grapheme; acts as general insurance agency, and travel and tour agent; produces and sells
cocoa, rat poison, and fertilizers, as well as provides agricultural research services; provides
computer services and sells computer software and equipment; sells industrial equipment;
offers security and jetty services; manufactures biomass fuel; and provides storing, handling,
and transportation services, as well as offers bulking installation services. The company was
incorporated in 2007 and is headquartered in Kuala Lumpur, Malaysia.

4. Financial Risk Management
Financial risk management policies
The Group is exposed to market risk (including foreign currency risk, equity price risk,
commodity price risk and finance rate risk), credit risk and liquidity risk arising from its
business activities. The Group’s overall risk management strategy seeks to minimise adverse
effects from the unpredictability of financial markets on the Group’s financial performance.
The Group uses relevant derivative financial instruments to hedge the risk of such
commercial exposure. Such derivative financial instruments are generally not held for trade
or speculative purposes. The Board of Directors has overall responsibility for the oversight of
financial risk management which include risk identification, operational or strategic, and the
subsequent action plans to manage these risks. Management is responsible for identifying,
monitoring and managing the Group’s risk exposures.
Market risk
Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk arising from
various currency exposures, primarily with respect to the United State Dollar (“USD”).
Foreign exchange risk arises from future commercial transactions, recognised assets and
liabilities and net investments in foreign operations but excludes interest in foreign joint
ventures and associates. The Group generally manages its currency exposure through foreign
currency forward contracts. A 10% strengthening/weakening of the USD against the
Malaysian Ringgit (“RM”) at the date of statement of financial position would have a
lower/higher impact to Group’s profit after tax of approximately of RM26, 368,000
(2013: RM16, 077,000 higher/lower).
The above exposure mainly as a result of foreign exchange gains/losses on translation of
foreign currency denominated deposits, cash and bank balances, trade receivables and
payables, financial assets at fair value through profit or loss and foreign exchange
losses/gains on translation of foreign currency denominated borrowings. The analysis
assumes that all other variables remain constant.

5. Price risk
Price risk is the risk that the fair value or future cash flows of the Group’s financial
instruments will fluctuate because of changes in market prices (other than finance or
exchange rates). Equity price risk The Group is exposed to equity price risk arising from its
investment in quoted and unquoted equity instruments. The quoted equity investments are
listed on the Bursa Malaysia and foreign stock exchanges and classified as available-for-sale
financial assets or financial asset at fair value through profit or loss based on the purpose for
which the quoted equity investments were acquired. Unquoted investments are valued using
the Price Earnings (“PE”)/Price to Book (“PB”) comparative method and classified as
available-for-sale financial assets.
Commodity price risk
The Group is exposed to commodity price risk since the prices crude palm oil (“CPO”),
sugar, soy bean and their derivatives are subject to fluctuations due to unpredictable factors
such as weather, change of global demand, global production, crude oil prices and global
production of similar and competing crops. Revenue of the Group is therefore subject to price
fluctuations in the commodity market. The Group uses derivative contracts to mitigate a
portion of such risks.
Finance rate risk
If finance rates on its floating rate financial liabilities and discount rate on LLA liability
increased/decreased by 50 basis points and borrowings increased/decreased by 10 basis
points with all other variables held constant, the profit after tax of the Group will increase by
RM205,936,0000 (2013: RM242,250,000) and decrease by RM232,186,000(2013:
RM213,000,000) respectively. Other financial assets and financial liabilities are non-finance
bearing, and therefore are not affected by changes in finance rates.

6. Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations
resulting in financial loss to the Group. The Group adopts the policy of dealing with
customers with an appropriate credit history, and obtaining sufficient security where
appropriate, including payments in advance, to mitigate credit risk.
Fair value estimation
Amounts that are measured in the statement of financial position at fair value are disclosed by
the following fair value measurement hierarchy:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
• Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly(that is, as prices) or indirectly (that is, derived from prices) (Level 2).
• Inputs for the asset or liability that are not based on observable market data (that is,
unobservable inputs) (Level 3).
The following table presents the Group’s financial assets and liabilities that are measured at
fair value at 31 December2014 and 31 December 2013: