MSM Malaysia Holdings Berhad Annual Report 2021

Improving Sales Performance • Focus on growing the VAP segment with higher selling price and premium • Grow Merchandising Unit, smaller packing to expand retail presence Growing a Sustainable Operation with Better Energy Planning and Green Energy • Implement green energy cost saving and reducing GHG emissions from electricity purchased by 10% via solar • Energy auditing, planning and optimisation to reduce carbon footprint and energy cost • Explore selling by-products i.e mudcake and calcium carbonate as fertilisers and molasses as a value added product Sustainable Manufacturing Performance • Target to optimise production reducing Refining Cost per MT • Operational improvements supported by experienced advisors • Improve Process Reliability and Production Availability 2 3 1 Sales & Distribution Cost Savings • Optimisation of internal assets of MSM Logistics within Klang Valley, 3rd Party Logistics for outside regions • Warehouse expansion and optimise demand and supply planning • Smart Fleet Management to optimise management, route planning, productivity Strategic Capital Management • Optimum mix of short-term and long-term borrowings • Increase USD borrowings for natural hedge in line with growing USD receivables from export Export via Strategic Partnership • Explore strategic partnership to strengthen export segment and further unlock synergistic value Digital Transformation via Industry 4.0 • Digital system is to enhance productivity and accelerate business processes • Improving data visualisation and analytics for better decision making • Implementing IR4.0 smart systems manufacturing, sales, logistics etc 4 5 6 7 KEY STRATEGIC INITIATIVES 2022 Seven KSIs have been identified to strive for resilience by (1) optimising our assets potential, (2) strengthening domestic position with intensified regional presence and (3) improving capital structures. Financial Capital Manufactured Capital Intellectual Capital Natural Capital Human Capital Social & Relationship Capital SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 73

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