Annual Report 2012 - IOI Group

More documents

Recommendations

Info

MANAGEMENT’SDISCUSSION AND ANALYSISGroup Business Review – PlantationAs at 30 June 2012, the Group’s total planted areastood at 158,881 hectares (FY2011 – 158,174 hectares)with approximately 99% of the estates’ planted areaplanted with oil palm.The Group has 82 estates, unchanged from theprevious financial year and the total oil palm plantedarea as at the end of the financial year under reviewstood at 157,752 hectares, an increase of 707hectares from the previous financial year.Approximately 65% of the Group’s oil palmplantation holdings are in East Malaysia, 29% inPeninsular Malaysia and the remaining 6% inIndonesia. The Group’s plantation produce areprincipally processed by its 12 palm oil mills with anannual milling capacity of approximately 4,000,000tonnes of fresh fruit bunches (“FFB”).The Group’s plantation business over the years hasbeen able to sustain as one of the most cost efficientproducers in the industry due to management’semphasis on continuous improvement in efficiencyand productivity of its operations. Achievements inproductivity are the result of years of concertedeffort and commitment to good plantationmanagement practices.Our commitment to quality in the plantationbusiness begins with the use of superior plantingmaterials to ensure high oil yield as well as qualityof the palm oil produced. We have a dedicatedresearch team focused on improving FFB yields, theoil and kernel extraction rates and carrying outresearch involving tissue culture to cultivate clonalpalms with superior traits.Our Tissue Culture Laboratory, with BioNexus status,was originally set up in the late 80s for research anddevelopment in large scale tissue culture propagationof high yielding oil palm clones. The expertise andcutting edge technology for the mass propagationof high yielding oil palm clones had been developedthrough years of intensive and systematic research.In recent years, the Tissue Culture Laboratory hadproduced over 800,000 high yielding clonal palmsper year. Through our intensive research anddevelopment efforts, we expect to increase theproduction of oil palm clones to a million per yearin the coming years. Moving forward, we arecontinuing our in-depth research efforts, includingresearch on oil palm molecular marker andinternational collaborations on palm genomeresearch. We believe that this helps to ensure thehigh yields of our oil palms and sustainability of ouroil palm business.The yields of oil palms also depends on other factorssuch as soil and climatic conditions, the quality ofplantation management, and harvesting andprocessing of the FFB at the optimum time. In thisrespect, hands-on management, proactive attitudeand attention to details have contributed to higherproductivity. In addition, we also have a team ofin-house agronomists to conduct various analysesand studies with the objective of ensuring qualitypalms and fruits, including studies on oil palmnutrient status, palm appearance, ground conditions,pests and diseases affecting palms and pruningmethods to ensure that best practices for sustainableagriculture are practised by the Group.Above: Loose oil palm fruitsripe for processing.Previous page: Estateworker loading FFB inPukin Estate, Pahang.Left: Harnessingbiotechnology forinnovation and valuecreation.Annual Report 2012IOI CORPORATION BERHAD 27
PLANTATION STATISTICSCROP STATEMENT2012 2011 2010 2009 2008Oil PalmAverage mature area harvested (hectare) 137,455 139,072 139,352 139,323 138,647FFB production (tonne) 3,185,878 3,295,473 3,405,090 3,626,776 3,957,281Yield per mature hectare (tonne) 23.18 23.70 24.44 26.03 28.54Mill production (tonne)Crude palm oil 668,177 686,917 732,275 777,310 848,119Palm kernel 164,235 165,701 170,876 182,075 199,347Oil extraction rate (%)Crude palm oil 20.95 20.88 21.53 21.38 21.38Palm kernel 5.15 5.04 5.02 5.01 5.02Average selling price (RM/tonne)Crude palm oil 3,135 2,945 2,372 2,831 2,865Palm kernel 1,912 2,241 1,229 1,279 1,706Operating profit (RM/mature hectare) 11,023 11,075 8,148 11,448 13,347RubberMature area tapped (hectare) – – – 200 430Rubber production (‘000 kg) – – – 449 1,243Yield per mature hectare (kg) – – – 2,243 2,890Average selling price (RM/kg) – – – 3.78 3.71Operating profit (RM/mature hectare) – – – 8,470 11,000CROP MIXOIL PALM HECTARAGE BY AGEOil Palm 157,752 Ha99.3%Rubber 496 Ha0.3%Others 633 Ha0.4%Total Planted Area = 158,881 HaPrime 111,691 Ha71%Young 10,994 Ha7%Immature 18,860 Ha12%Due 2,261 Ha1%Past Prime 13,946 Ha9%Total Oil Palm Area = 157,752 Ha28IOI CORPORATION BERHADAnnual Report 2012
Page 1 and 2: IOI CORPORATION BERHAD (9027-W)IOI
Page 3 and 4: KEYINDICATORS20%15105IOI CORPORATIO
Page 5 and 6: OUR VISIONOUR COREVALUESCONTENTSIOI
Page 7 and 8: CHAIRMAN’SSTATEMENT
Page 9 and 10: CONTRIBUTION TO SEGMENT RESULTS2012
Page 11 and 12: Sustainability andCORPORATE SOCIALR
Page 13 and 14: GROUP FINANCIALOVERVIEWCASH FLOWFOR
Page 15 and 16: GROUP PERFORMANCEHIGHLIGHTS2012RM
Page 17 and 18: FIVE-YEAR FINANCIALHIGHLIGHTS2012RM
Page 19 and 20: MANAGEMENT’SDISCUSSION AND ANALYS
Page 21 and 22: • Pre-tax Earnings decreased by 1
Page 23 and 24: 20181614121086420-2%Cost of Equity
Page 25 and 26: plantationAchievements in productiv
Page 27: PLANTATION
Page 31 and 32: OPERATIONS REVIEWFor the financial
Page 33 and 34: esource-based manufacturingThe succ
Page 35 and 36: RESOURCE-BASED MANUFACTURING
Page 37 and 38: OLEOCHEMICALSMANUFACTURINGThe princ
Page 39 and 40: Bottom: IOI Loders CroklaanAmericas
Page 41 and 42: PROPERTYA green building comprises
Page 43 and 44: Property
Page 45 and 46: Left: The new Palm GardenGolf Cours
Page 47 and 48: OUTLOOK & PROSPECTSThe local proper
Page 49 and 50: sustainability andCORPORATE SOCIAL
Page 51 and 52: Top: Beneficial plants.Bottom: Buff
Page 53 and 54: Operating under the Institute of Sh
Page 55 and 56: CORPORATE SOCIALRESPONSIBILITYSocia
Page 57 and 58: SEPTEMBER 2011Palm Garden Hotel, to
Page 59 and 60: DECEMBER 2011IOI Mall Puchong offer
Page 61 and 62: APRIL 2012Yayasan TSLSC donated RM2
Page 63 and 64: BOARD OF DIRECTORS3 4211. DATO’ L
Page 65 and 66: PROFILE OFDIRECTORSWhen others seet
Page 67 and 68: Lee Cheng Leang was first appointed
Page 69 and 70: Quah Poh Keat was first appointed t
Page 71 and 72: SeniorManagement TeamGroup Chief Ex
Page 73 and 74: GLOBALPRESENCECANADAONTARIOCANADAON
Page 75 and 76: LOCATION OFOPERATIONS IN MALAYSIAPe
Page 77 and 78: CORPORATECALENDARJULY 2011IOI Corpo
Page 79 and 80:
JANUARY 2012IOIP, through its subsi
Page 81 and 82:
MAY 2012IOI Oleochemical’s Penang
Page 83 and 84:
Audit and Risk ManagementCommittee
Page 85 and 86:
x. To review any related party tran
Page 87 and 88:
STATEMENT ONCORPORATE GOVERNANCEInt
Page 89 and 90:
Training and Development of Directo
Page 91 and 92:
Cheah Tek Kuang 2011 Forbes Global
Page 93 and 94:
SHAREHOLDERSDialogue Between the Co
Page 95 and 96:
STATEMENT ONINTERNAL CONTROLINTRODU
Page 97 and 98:
MONITORING• The Group’s policie
Page 99 and 100:
STATEMENT OF DIRECTORS’ INTERESTS
Page 101 and 102:
Notes:(1) Details of the transactin
Page 103 and 104:
DIRECTORS’REPORTThe Directors of
Page 105 and 106:
DIRECTORS’REPORTUSD600 Million Ze
Page 107 and 108:
DIRECTORS’REPORTExecutive Share O
Page 109 and 110:
DIRECTORS’REPORTDirectors’ Inte
Page 111 and 112:
DIRECTORS’REPORTSignificant Event
Page 113 and 114:
INCOMESTATEMENTSFor The Financial Y
Page 115 and 116:
STATEMENTS OFFINANCIAL POSITIONAs A
Page 117 and 118:
STATEMENTS OFCHANGES IN EQUITYFor T
Page 119 and 120:
STATEMENTS OFCHANGES IN EQUITYFor T
Page 121 and 122:
STATEMENTS OFCASH FLOWSFor The Fina
Page 123 and 124:
STATEMENTS OFCASH FLOWSFor The Fina
Page 125 and 126:
NOTES TO THEFINANCIAL STATEMENTS3.
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
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:
Page 261 and 262:
Page 263 and 264:
Page 265 and 266:
Page 267 and 268:
Page 269 and 270:
Page 271 and 272:
INDEPENDENTAUDITORS’ REPORTTo The
Page 273 and 274:
GROUPPROPERTIESA. PLANTATIONS ESTAT
Page 275 and 276:
GROUPPROPERTIESB. DEVELOPMENT PROPE
Page 277 and 278:
GROUPPROPERTIESB. DEVELOPMENT PROPE
Page 279 and 280:
GROUPPROPERTIESC. INVESTMENT PROPER
Page 281 and 282:
GROUPPROPERTIESD. INDUSTRIAL PROPER
Page 283 and 284:
GROUPPROPERTIESE. OTHER PROPERTIES
Page 285 and 286:
NOTICE ofAnnual general MeetingAGEN
Page 287 and 288:
NOTICE ofAnnual general MeetingNote
Page 289 and 290:
SHAREHOLDERSINFORMATIONAs At 30 Aug
Page 291 and 292:
SHAREHOLDERSINFORMATIONAs At 30 Aug
Page 293:
1st fold heresTAMPThe Company Secre
show all

Annual Report 2012 - IOI Group

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?