Eng - IOI Group

Management’s Discussion and Analysis cont’dGROUP BUSINESS REVIEWOPERATIONS REVIEWFor the financial year under review, the Group’s estates produced a total of 3.69 million MT of FFB, almost the same level as theprevious year.The average FFB yield per hectare for FY2007 was slightly lower compared to previous financial year. Yields were somewhat affectedby unfavourable weather and lingering effect of the cyclical “biological tree-stress” suffered last year. With the lower FFB yield forFY2007 at 26.72 MT (FY2006 - 26.93 MT) per mature hectare and coupled with a slightly lower oil extraction rate of 21.33%(FY2006 - 21.38%) the average CPO yield declined to 5.70 MT per mature hectare as compared to a yield of 5.76 MT per maturehectare for FY2006. Nevertheless, the CPO yield achieved by our Group is still approximately 50% higher than the national averageof 3.8-4.0 MT per mature hectare. The Group’s CPO yield trend for the last 5 years are as follows:Oil Yield Per Mature HectareMT/HA6.005.805.605.405.205.004.8003 04 05 06 07Oil Yield/HAThe best performing estate which is Moynod Estate, achieved a yield of 7.82 MT of CPO per hectare for FY2007.IOI Corporation BerhadANNUAL REPORT 2007 32