Eng - IOI Group

management’sdiscussionandanalysis • review of core business operations cont’dRESULTSWith average CPO price realised higher by 36% to RM1,461 per MT for FY 2003 and a 25% growth in FFB production, ourplantation segment’s EBIT recorded a substantial increase of 129% to RM543.4 million for FY 2003, up from RM236.9million for the previous year.At the net operating profit after tax (“NOPAT”) level, the division made a total of RM453.8 million for financial year2003, up 88% from previous year, giving an ROCE of 25.6% (vs. 13.9% in 2002) based on an average capital employedbase of RM1,772.9 million (RM1,734.3 million in 2002).Operating profit per average mature hectare for oil palm was RM5,576 per hectare for FY 2003 as compared to RM2,834per hectare for the previous year, a 97% increase reflecting effects of much higher palm product prices as well as theimproved production yield.On capital expenditure, the Division spent RM31.9 million on new planting (vs. RM28.7 million in 2002) and RM58.3million (vs. RM38.5 million in 2002) towards the expansion of capacity for CPO mills, staff quarters, road and bridgesand agricultural equipment. In addition, a sum of RM10.1 million (RM8.6 million in 2002) was charged out as replantingexpenditure.IOI Corporation BerhadAnnual Report 200354