About Genting Plantations Berhad
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About Genting Plantations Berhad Genting Plantations, a subsidiary of Genting Berhad, has a landbank of about 64,600 hectares in alaysia and some 183,000 hectares in Indonesia including the Plasma scheme. Genting Plantations ons seven oil mills in alaysia and four in Indonesia ith a total milling capacity of 550 metric Plantation Donstream tonnes mt of fresh fruit bunches FFB processed per hour. Since our inception in 1980, Division anufacturing Genting Plantations is no a verticallyintegrated Division palm oil producer ith significant investments in Our Plantation Division’s operations the manufacturing of donstream palmbased encompasses both plantation and FFB Our Group’s Downstream Manufacturing products, property development and biotechnology. processing activities. Division’s operating facilities, collectively known as Genting Integrated Biorefinery For more information, visit our ebsite at Our oil palm estates span across Malaysia, Complex, are located in the Palm Oil www.gentingplantations.com and Kalimantan in Indonesia, with total Industrial Cluster (“POIC”) Lahad Datu, landbank of 247,000 hectares (including Sabah, comprising two biodiesel plants with Plasma scheme). an aggregate 300,000 mt annual processing capacity and the Genting MusimMas Refinery Genting Plantations Planting aterial Refined Products Our Group also operates seven oil mills in (“GMMR”) – a newly-operational palm oil Malaysia; one in Peninsular Malaysia and six a Vertically Integrated refinery with a processing capacity of in Sabah, and four in Indonesia. Together, Fresh Fruit Bunches Biodiesel 600,000 mt per annum. Palm Oil Producer our mills have a combined milling capacity of 550 mt per hour. Crude Palm Oil R&D and dvisory Value Chain OUR NURSERIES OUR R&D EXTERNAL REFINERIES Property Biotechnology Division Division Taking advantage of our Group’s strategic As a sustainable alternative to expanding landbank, our foray into property our Group’s planted areas, the development has seen good returns in the Biotechnology Division was established to states of Melaka and Johor in Peninsular spearhead pioneering research in genomic Malaysia. science to increase oil palm yields while OUR ESTATES OUR OUR building crop resilience to disease. OIL MILLS INTEGRATED BIOREFINERY Three projects have been undertaken so far COMPLEX – Genting Cheng Perdana in Melaka, and The Biotechnology Division has successfully Genting Pura Kencana and Genting identified genomic markers to select Indahpura in Johor – and are established to superior planting materials through meet the rising demand of affordable marker-assisted selection, and developed residential real estate in the respective microbial-based growth enhancers and regions. disease-prevention solutions. EXTERNAL EXTERNAL OUR OIL MILLS SUPPLIERS CUSTOMERS GENP Sustainability Report 2017 7 Our Business Genting Plantations, a subsidiary of Genting Berhad, has a landbank of about 64,600 hectares in alaysia and some 183,000 hectares in Indonesia including the Plasma scheme. Genting Plantations ons seven oil mills in alaysia and four in Indonesia ith a total milling capacity of 550 metric Plantation Donstream tonnes mt of fresh fruit bunches FFB processed per hour. Since our inception in 1980, Division anufacturing Genting Plantations is no a verticallyintegrated Division palm oil producer ith significant investments in Our Plantation Division’s operations the manufacturing of donstream palmbased encompasses both plantation and FFB Our Group’s Downstream Manufacturing products, property development and biotechnology. processing activities. Division’s operating facilities, collectively known as Genting Integrated Biorefinery For more information, visit our ebsite at Our oil palm estates span across Malaysia, Complex, are located in the Palm Oil www.gentingplantations.com and Kalimantan in Indonesia, with total Industrial Cluster (“POIC”) Lahad Datu, landbank of 247,000 hectares (including Sabah, comprising two biodiesel plants with Plasma scheme). an aggregate 300,000 mt annual processing capacity and the Genting MusimMas Refinery Genting Plantations Planting aterial Refined Products Our Group also operates seven oil mills in (“GMMR”) – a newly-operational palm oil Malaysia; one in Peninsular Malaysia and six a Vertically Integrated refinery with a processing capacity of in Sabah, and four in Indonesia. Together, Fresh Fruit Bunches Biodiesel 600,000 mt per annum. Palm Oil Producer our mills have a combined milling capacity of 550 mt per hour. Crude Palm Oil R&D and dvisory Value Chain OUR NURSERIES OUR R&D EXTERNAL REFINERIES Property Biotechnology Division Division Taking advantage of our Group’s strategic As a sustainable alternative to expanding landbank, our foray into property our Group’s planted areas, the development has seen good returns in the Biotechnology Division was established to states of Melaka and Johor in Peninsular spearhead pioneering research in genomic Malaysia. science to increase oil palm yields while OUR ESTATES OUR OUR building crop resilience to disease. OIL MILLS INTEGRATED BIOREFINERY Three projects have been undertaken so far COMPLEX – Genting Cheng Perdana in Melaka, and The Biotechnology Division has successfully Genting Pura Kencana and Genting identified genomic markers to select Indahpura in Johor – and are established to superior planting materials through meet the rising demand of affordable marker-assisted selection, and developed residential real estate in the respective microbial-based growth enhancers and regions. disease-prevention solutions. EXTERNAL EXTERNAL OUR OIL MILLS SUPPLIERS CUSTOMERS 8 GENP Sustainability Report 2017 Our Groups Economic Performance Genting Plantations believes in value creation and enhancement for our shareholders, the people e employ, and the communities e operate in. Hence the attainment of financial targets remains a central tenet of the business ithout compromising our corporate values and ethics, the epectations of our stakeholders, and our commitments toards sustainability. Profitability in our businesses allos us to reinvest our earnings into the operating environment including providing job opportunities, improving living standards of our employees and local communities, and contributing to building of rural infrastructureinfrastructure andand amenitiesamenities besidesbesides supportingsupporting deservingdeserving conservationconservation effortsefforts asas aa responsibleresponsible corporate citizen. The year 2017 marked an uptick compared to the production oes generally eperienced by the industry inin 2016.2016. GentingGenting PlantationsPlantations BerhadBerhad registeredregistered revenuerevenue ofof R1.80R1.80 billionbillion forfor thethe financialfinancial yearyear endedended 3131 December 2017 F 2017, representing a 22 increase from the previous year. Revenue groth as underpinned by the positive performance from all divisions, ith the exception of the Property Division. The Plantation Division recorded an increase in fresh fruit bunches FFB production buoyed by crop recovery from the impact of El Nino along ith additional mature areas and an improved age profile of planted areas in Indonesia. The Donstream anufacturing Division also recorded higher sales of refined products and biodiesel. Our Group achieved a higher CPO selling price of R2,715 per metric tonne mt in F 2017 on the back of sustained demand from major importing countries amid the generally slowerthanepected crop output recovery from El Nino. However, our Groups palm kernel P selling prices in F 2017 ere slightly lower yearonyear at R2,443 per mt. For F 2017, Genting Plantations posted R637.7 million in EBITD, an increase of 3 compared to the previous financial year, contributed mainly by its mainstay Plantation Division. lthough our Groups Property Division registered higher yearonyear sales for F 2017, EBITD for the division as lower due to a different sales mi. The Biotechnology Division continued to record lower yearonyear losses for F 2017 reflecting its lower research and development ependiture. The Donstream anufacturing Division achieved profitability in 2017, contributing R12.1 million in EBITD from the higher sales of both biodiesel and refined products along ith improving capacity utilisation of its operations. For a more detailed disclosure on the economic performance of our Group, please refer to 2017 Genting Plantations nnual Report at .gentingplantations.com The breakdon of the direct economic value generated and distributed by our Groups alaysian operations for 2017 and 2016 excluding the Property Division is tabulated below: Direct Economic alue Generated and Distributed R illion 2017 2016 RevenueRevenue 1,165.0 1,001.6 Economic alue Distributed OperatingOperating CostsCosts 743.0 700.0 EmployeeEmployee agesages andand BenefitsBenefits 77.6 70.0 PaymentsPayments toto ProvidersProviders ofof CapitalCapital 249.6 87.4 PaymentsPayments toto GovernmentGovernment TaesTaes andand eviesevies 186.8 143.7 CommunityCommunity InvestmentsInvestments CSRCSR andand PhilanthropyPhilanthropy 1.4 1.1 GENP Sustainability Report 2017 9 Our Groups Economic Performance Genting Plantations believes in value creation and enhancement for our shareholders, the people e employ, and the communities e operate in. Hence the attainment of financial targets remains a central tenet of the business ithout compromising our corporate values and ethics, the epectations of our stakeholders, and our commitments toards sustainability. Profitability in our businesses allos us to reinvest