Eng - IOI Group

More documents

Recommendations

Info

Management’s Discussion and Analysis cont’dGROUP BUSINESS REVIEWINTRODUCTIONAs at 30 June 2007, the Group’s total titled plantation area stood at 169,450 hectares with 99% of the estates’ planted area beingplanted with oil palm.The Group has 80 estates, an increase from last financial year of 77 estates, as a result of acquisition of estates in Sarawakin September 2006. The total oil palm planted area as at the end of FY2007 stood at 148,871 hectares, an increase of 4,816hectares from the previous financial year end. Approximately 68% of the Group’s plantation holdings are in the state of Sabahand Sarawak with the remaining 32% in Peninsular Malaysia, mainly in the central and southern parts of the Peninsular. TheGroup’s plantation produce are principally processed by its own 12 palm oil mills with an annual milling capacity of approximately3,900,000 tonnes of fresh fruit bunches (“FFB”).The Group’s plantation business strong growth in a short span of 24 years since 1983 was achieved not just through acquisitionswhenever opportunities arises, but also because of its distinctive plantation management practices that emphasise greatly oncontinuous improvement in yields and in cost efficiencies which enable us to be one of the most cost effective producers in theindustry. Our achievement on productivity is the result of years of concerted effort and commitment to good plantation managementpractices.Our quality commitment approach in the plantation sector begins with the use of superior planting materials to ensure high oil yieldas well as quality of the palm oil produced. We have a dedicated research team focused on improving fresh fruit bunches yields,the oil and kernel extraction rates and carrying out research involving tissue culture to cultivate seedlings with superior traits. Webelieve that this helps ensure the high yield of our palm oil and helps ensure optimum sustainability of our oil palm business.The yield from oil palm plantation also depends on other factors such as soil and climatic conditions, the quality of plantationmanagement, and harvesting and processing of the fresh palm fruit bunches at the optimum time. In this respect, hands-onmanagement, proactive attitude and attention to detail have contributed to higher productivity. In addition, we also have a teamof in-house agronomists to conduct various analysis and studies with the objective of ensuring quality palms and fruits, includingstudies on palm oil nutrient status, palm appearance, ground conditions, pests and diseases affecting palms, pruning methods etcto ensure that best practices for sustainable agriculture are practised by the Group.29ANNUAL REPORT 2007IOI Corporation Berhad
Management’s Discussion and Analysis cont’dGROUP BUSINESS REVIEWPLANTATION STATISTICS2007 2006 2005 2004 2003CROP STATEMENTOil PalmMature area harvested (hectare) 138,282 136,455 132,679 122,401 95,450FFB production (tonne) 3,694,535 3,674,483 3,657,776 2,927,194 2,396,231Yield per mature hectare (tonne) 26.72 26.93 27.57 23.91 25.10Mill production (tonne)Crude palm oil 793,452 805,627 815,790 677,319 597,515Palm kernel 185,418 188,235 192,446 157,243 143,307Oil extraction rate (%)Crude palm oil 21.33 21.38 21.59 21.54 21.82Palm kernel 4.98 5.00 5.09 5.00 5.23Average selling price (RM/tonne)Crude palm oil 1,759 1,386 1,453 1,575 1,461Palm kernel 958 928 1,005 794 711Operating profit (RM/mature hectare) 6,728 4,560 5,783 5,300 5,576RubberMature area tapped (hectare) 568 619 1,054 1,249 1,605Rubber production (‘000 kg) 1,723 1,234 1,730 2,329 3,615Yield per mature hectare (kg) 3,034 1,993 1,641 1,865 2,252Average selling price (RM/kg) 3.24 5.23 4.88 5.27 4.15Operating profit (RM/mature hectare) 10,144 7,583 4,356 4,380 3,850Crop MixOil palm Hectarage… By AgeRubber 0.4%(568 HA)Other 0.3% (386 HA)Immature 6.1%(9,073 HA)Young 12.2%(18,177 HA)Due 2.3% (3,411 HA)Past Prime 6.0%(9,009 HA)Oil Palm 99.3%(148,871 HA)Prime 73.4%(109,201 HA)Total Planted Area = 149,825 HATotal Planted Area = 148,871 HAIOI Corporation BerhadANNUAL REPORT 2007 30
Page 3 and 4: Our Vision... is to be a leading co
Page 5: Chairman’s StatementDear Valued S
Page 12: Responsibility“ Today, more than
Page 15: Group Performance Highlights2007 20
Page 20 and 21: Efficiency“The future belongs to
Page 22 and 23: Management’s Discussion and Analy
Page 30 and 31: PALM OIL BUSINESS STREAMManagement
Page 40 and 41: CORPORATE SOCIAL RESPONSIBILITY (CS
Page 58 and 59: KepongKLCCKL SentralPetaling JayaKu
Page 61 and 62: Corporate InformationBOARD OF DIREC
Page 63 and 64: Profile of Directors cont’dDATO
Page 65 and 66: Profile of Directors cont’dDATUK
Page 68 and 69: Excellence in ExecutionOur commitme
Page 70 and 71: Audit Committee Report cont’dTERM
Page 72 and 73: Audit Committee Report cont’dTERM
Page 74 and 75: Corporate GovernanceINTRODUCTIONThe
Page 76 and 77: Corporate Governance cont’dTHE BO
Page 78 and 79: Corporate Governance cont’dTHE BO
Page 80 and 81: Corporate Governance cont’dSHAREH
Page 82 and 83:
Statement on Internal ControlINTROD
Page 84 and 85:
Statement on Internal Control cont
Page 86 and 87:
Other InformationCOMPOSITION OF SHA
Page 88 and 89:
RECURRENT RELATED PARTY TRANSACTION
Page 90 and 91:
Other Information cont’dPENALTIES
Page 93 and 94:
Senior Management TeamGroup Chief E
Page 95 and 96:
Global PresenceNORTH AMERICA• USA
Page 97 and 98:
Location of Operations in MalaysiaP
Page 99 and 100:
Corporate CalendarNov 2006• IOI P
Page 101 and 102:
Corporate Calendar cont’dMarch200
Page 103 and 104:
Social ContributionSep 2006• Yaya
Page 105 and 106:
Social Contributions cont’dMay 20
Page 107 and 108:
Directors’ ReportThe Directors of
Page 109 and 110:
Directors’ Report cont’dUSD310
Page 111 and 112:
Directors’ Report cont’dExecuti
Page 113 and 114:
Directors’ Report cont’dReserve
Page 115 and 116:
Directors’ Report cont’dDirecto
Page 117 and 118:
Directors’ Report cont’dStatuto
Page 119 and 120:
Directors’ Report cont’dSignifi
Page 121 and 122:
Directors’ Report cont’dSignifi
Page 123 and 124:
Income Statementsfor the financial
Page 125 and 126:
Balance Sheets cont’das at 30 Jun
Page 127 and 128:
Statements Of Changes In Equity con
Page 129 and 130:
Statements Of Changes In Equity con
Page 131 and 132:
Cash Flow Statements cont’dfor th
Page 133 and 134:
Cash Flow Statements cont’dfor th
Page 135 and 136:
Notes To The Financial Statements c
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Statement By DirectorsIn the opinio
Page 261 and 262:
Group PropertiesA. PLANTATION ESTAT
Page 263 and 264:
Group Properties cont’dA. PLANTAT
Page 265 and 266:
Group Properties cont’dB. DEVELOP
Page 267 and 268:
Group Properties cont’dC. INVESTM
Page 269 and 270:
Group Properties cont’dD. INDUSTR
Page 271 and 272:
Group Properties cont’dE. OTHER P
Page 273 and 274:
Notice of Annual General MeetingNOT
Page 275 and 276:
Notice of Annual General Meeting co
Page 277 and 278:
Statement Accompanying Noticeof Ann
Page 279 and 280:
Shareholders Information cont’das
Page 281 and 282:
This page has been intentionally le
Page 283 and 284:
fold herestampThe Company Secretary
show all

Eng - IOI Group

Create successful ePaper yourself

Delete template?

Save as template?