Boustead Plantations Berhad | Integrated Report 2023

BUSINESS REVIEW PLANTATION Sabah Operations Suboptimal Delivery of Fertilisers • Optimised supply chain management processes to ensure prompt delivery of fertiliser • Amplified the use of palm oil mill byproducts as organic fertiliser • Enhanced fertiliser distribution processes to guarantee the timely execution of manuring programmes Ganoderma Infection • Lowered the likelihood of infection through the adoption of integrated pest management measures, which included improving soil health, removing affected trees and employing disease-resistant oil palm varieties • Successfully minimised Ganoderma infections • Prolonged the economic lifespan of oil palms Unfavourable Hilly and Steep Terrain with No Proper Infrastructure Development and Small Outlying Divisions • Enhanced area redevelopment during replanting efforts by: i. Expanding back terraces and roads wherever feasible to improve accessibility ii. Employing replanting methods tailored for hilly landscapes, including contour planting and erosion prevention measures iii. Developing optimal field layouts for challenging terrains, integrating good management practices and improved accessibility • Achieved higher yield expectations by optimising palm planting and growth, enhancing field accessibility, and ensuring efficient crop evacuation Small Divisions in Remote Locations • Merged smaller operational divisions • Established unified operational unit for enhanced efficiency and cost-effectiveness Sarawak Operations Narrow Terraces with Extremely Steep Terrain • Developed adequate harvester access routes and accessible and maintained roads for efficient FFB evacuation • Achieved optimal accessibility to palms and efficient crop evacuation KEY OPERATIONAL ACHIEVEMENTS Peninsular Malaysia Sabah Sarawak Total Total FFB production (MT) 351,111 420,684 60,021 831,816 Total FFB processed (MT) 355,679 542,012 57,253 954,944 FFB yield (MT per ha) 17.4 14.0 6.1 13.9 Total mill processing capacity (MT per hour) 130 215 105 450 Total CPO produced (MT) 75,550 113,208 10,214 198,972 Total PK produced (MT) 13,360 21,367 2,608 37,335 OER 21.2% 20.9% 17.8% 20.8% KER 3.8% 3.9% 4.6% 3.9% Challenges Mitigating Actions Results Boustead Plantations Berhad 064

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