STRATEGIC REVIEW RISKS AND MITIGATION HUMAN CAPITAL RISK Description Potential Impact Key Mitigation Labour shortages and lack of skilled workers for harvesters and general workers. • Revenue loss • Inadequate field maintenance programmes • Lower FFB yield • Disruption in our operational business processes • Mechanising operations to lessen reliance on manual labour • Social initiatives to retain employees • Strategic Recruitment Initiative • Inclusive recruitment process emphasizing hiring with the right skill set • Enhancing workers’ skills and productivity through training programmes OPERATIONAL PRODUCTIVITY RISK Description Potential Impact Key Mitigation Low FFB yield contributed by shortage of workers, agronomic and productivity related factors. • Revenue loss • Lower FFB production • High estate unit production cost • Inability to meet targeted FFB yield • Implementing the Group’s Replanting Programme • Exploring technology for tall palm harvesting • Implementing PPIP 2.0 • Enhancing workers’ skills and productivity through training programmes • Rebalancing assets • Improving FFB evacuation infrastructure FINANCIAL RISK Description Potential Impact Key Mitigation Increase in operational expenses primarily due to a rise in costs associated with manuring, collection, fixed overhead and ESG compliance. • Lower profitability • Higher cash requirement from operations • Lower cash inflow from operations • Lower dividend • Implementing PPIP 2.0 • Efficient cost and cash flow management Boustead Plantations Berhad 058
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