Annual Report 2023

DELIVERING SUSTAINABLE PERFORMANCE

Annual Report 2023

KEY MESSAGES

CHAIRMAN'S
STATEMENT

The resource-based manufacturing segment reported an underlying profit of RM749.1 million for FY2023 which was 34% higher than the underlying profit of RM560.6 million for FY2022.

TAN SRI PETER CHIN FAH KUI

Independent Non-Executive Chairman

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GROUP MANAGING DIRECTOR AND CHIEF EXECUTIVE’S STATEMENT

Our oleochemical business unit in Germany has recorded yet another strong performance for FY2023 anchored by its pharmaceutical business segment.

DATO’ LEE YEOW CHOR

Group Managing Director and Chief Executive

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VALUE CREATION MODEL

OUR VISION IS TO BE A LEADING AND SUSTAINABLE MALAYSIAN BUSINESS CORPORATION WITH GLOBAL PRESENCE.
1
CAPITAL INPUTS
Human
Natural
Financial
Manufactured
Social & Relationship
Intellectual
2
IOI INTEGRATED VALUE CHAIN
  • Strategic Priorities
    • Increase Yield
    • Optimise Workforce
    • Diversify Crops
    • Increase the Non-CPO Segment
    • Grow the Oleochemical Segment
  • Competitive Edge
    • Integrated Value Chain
    • Integrated System
    • Efficiency Culture
    • Sustainability Culture
    • Strength in R&D
    • Innovative Culture
    • Strong Partnership
  • Risks
    • Business Resilience
    • Global Economic Downturn
    • New Trade Regulations
    • Supply Chain Compliance
    • Reliance on Manual Workers
    • Environmental Sustainability
3
VALUE DELIVERY & IMPACT
In alignment with our three pillars of sustainability
(People, Planet, Prosperity) + Partnership,
together with the six adopted relevant United Nations Sustainable Development Goals (“UN SDGs”)
View Full Value Creation Model
1
CAPITAL INPUTS
Human
  • Strong leadership and governance
  • ≈28,000 talented and diverse people
  • Succession and business continuity planning
  • Training and upskilling opportunities to develop employees
Natural
  • 98 estates
  • 207,129 hectares of landbank
  • Seeds, plants and healthy soil to cultivate oil palm trees and other crops
Financial
  • Access to capital for investments in future success
  • RM17.6 billion of assets
  • RM11.3 billion of shareholders’ equity
Manufactured
  • 15 mills
  • 2 refineries
  • 4 oleochemical plants/complexes
  • 1 palm wood factory
  • 1 biotech centre
  • 4 Research and Development (“R&D”) centres
Social & Relationship
  • Strong long-term relationships with shareholders, customers, suppliers, financial institutions, non-governmental organisations (“NGOs”), regulators and communities to create shared values
Intellectual
  • R&D capabilities and intellectual property
  • Brand values and good reputation
  • Best agronomy practice and estate management practices
2
IOI INTEGRATED VALUE CHAIN
3
VALUE DELIVERY & IMPACT
Human
  • Good employee career development and progression
  • Healthy workforce
  • Safe and conducive workplace
Natural
  • Sustainable palm oil practices support climate action and maintain ecosystem health
  • Implement and introduce organic palm oil
  • 15 mills: 14 RSPO and MSPO-certified
  • No deforestation and protection of High Carbon Stock Forests and High Conservation Value Areas
  • Towards Group-wide net zero by 2040
  • RSPO: Roundtable on Sustainable Palm Oil
  • MSPO: Malaysian Sustainable Palm Oil
Financial
  • Sustainable and profitable growth
  • Good dividend payout
  • Green and responsible investment
  • Better economies of scale
  • Resilient earnings from fully integrated business model
Manufactured
  • State-of-the-art, certified and accredited manufacturing facilities
  • Significant operational efficiencies and synergies
  • First-of-its-kind palm wood factory
Social & Relationship
  • Quality and customised products at competitive cost for customers to support quality of life and improve nutrition
  • Improve livelihoods and uphold land rights of local communities
Intellectual
  • High-yielding germplasm
  • Developed 14 new formulations for personal care and cosmetic applications
  • Filed 2 new patents for food, cosmetic and expandable polystyrene (“EPS”) applications
  • ONE IOI Integrated Platform

Strategic Framework

OUR GROUP’S FIVE-YEAR PLAN (2020-2024)

3 STRATEGIC ENABLERS

  • ENABLER 1
    Human Capital Development & Culture

  • ENABLER 2
    Sustainability

  • ENABLER 3
    Technology & Digitalisation

5 STRATEGIC PRIORITIES
  • Increase Yield
  • Optimise Workforce
  • Diversify Crops
  • Increase the Non-CPO Segment
  • Grow the Oleochemical Segment
Read Full Strategic Progress

Financial Highlights

Financial Highlights

Revenue

RM11.58 billion

Profit before Interest and Tax

RM1.82 billion

Net Profit Attributable to Owners of the Parent

RM1.11 billion

Market Capitalisation

RM23.14 billion

Share Price

RM3.73

Group Business Review: Plantation
Group Business Review: Resource-Based Manufacturing

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