MSM Malaysia Holdings Berhad Annual Report 2019

STRATEGIC PERFORMANCE SOLIDIFY GOOD GOVERNANCE & RISK EXPOSURE Increased production yield and utilisation by producing value-added sugar products e.g. Liquid Sugar and Premix Achieved commercialisation of MSM Johor in April 2019 and MSM is now ranked No 8 largest sugar refiner in the World by capacity Increased total production by 11% On-going effort on divestment of MSM’s non-core business On-going research and development (R&D) effort on food and non-food sugar related products e.g. Low-Calorie Sucralose, Mudcake and Molasses for fertiliser Capacity utilisation decreased by 29.2% following low capacity utilisation rate in MSM Johor Monetising non-core assets – Sale or lease of plantation land in Chuping, Perlis Ended the old-contracted and high-priced freight in 2019 Procuring raw sugar and hedging FOREX as per the Group’s policy allowable time frame Implementing measures to reduce refining cost e.g. Embark on Biomass effective from mid-2021 onwards Restructuring borrowings with the lenders to provide breather to the Group’s cash flow Revenue decreased by 9% Placed No 38 and 60 in the List of Top 100 Companies for CG Disclosure and Overall CG & Performance in the MSWG-ASEAN Corporate Governance Awards Seven new and revised policies were established and subsequently endorsed by BGRMC and approved by the Board in 2019 The content of the Risk Management policies, tools and framework were improved by having discussion with all the stakeholders to assess whether all the points raised were prevalent and applicable Reviewing the Business Recovery Strategy of relevant departments or divisions to ensure validity of the current Business Continuity Plan (BCP) Constantly monitoring world sugar price and only purchasing at desirable and achievable profit target to mitigate risk on unfavourable raw sugar price movement Reduced CO 2 emissions from air travel by 30.4% Decreased electricity consumption by 31.2% Reduced CO 2 emissions from electricity by 35.5% Maintaining 2,000 volunteer hours since 2013 for community programme Water usage increased by 14.9% Female representation at the management level reduced to a ratio of 69:16 STRENGHTHEN CORE OPERATIONS IMPROVE SUSTAINABLE VALUES STRONG FINANCIAL MANAGEMENT Hint: Key On-Going Non-performance 9 DELIVERING VALUE 01