NavigatingThroughVolatility MSM maintained a steady footing through a year of increasing costs and operational disruptions by committing to business and sustainability plans, firming up stakeholder relationships and taking quick action to overcome hurdles. Staying responsive instead of reactive, MSM made the following prudent and decisive actions to address the year’s challenges: Mitigating Rising Raw Sugar NY11 and Freight Costs With NY11 prices trending higher and freight costs on the rise, MSM continues to hedge NY11 towards budget. By securing lower hedged pricing and offsetting increased costs on these vital resources, MSM is able to secure good refining margin. MSM naturally hedges all Industry and Export volumes with a back-to-back pricing mechanism on top of raw sugar cost. While raw sugar supply shortages will result in raw sugar price increase, MSM has managed to hedge a significant portion of itsWholesale requirement in FY2022 below market price. The Group will continue hedging the rising cost cautiously to sustain against this challenging inflationary period. MSM HAS MANAGED TO HEDGE A SIGNIFICANT PORTION OF ITS WHOLESALE REQUIREMENT IN FY2022 BELOW MARKET PRICE. THE GROUP WILL CONTINUE HEDGINGTHE RISING COST CAUTIOUSLY TO SUSTAIN AGAINSTTHIS CHALLENGING INFLATIONARY PERIOD. CHAIRMAN’S ADDRESS WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 50
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