Frontken Berhad Annual Report 2021

Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 30 In the reporting period of FY2021, we achieved the following: RND INNOVATION INDICATORS UNIT OF MEASURE FY2021 RESEARCH AND DEVELOPMENT AND INNOVATION (“RDI") RATE (i) Increase of at least 10% in research and development and innovation rate; computed based on per unit of dollar revenue/RND Cost for each period. (Baseline data is FY2019); rate 78.99 (ii) Increase of at least 10% in return of investment in research and development and innovation activities; computed based on per unit of dollar operating profit/RND Cost for each period. (Baseline data is FY2019); return of investment 20.04 (iii) Number of RDI activities and IP generated per FTE for each period. number 5.60 RESEARCH AND DEVELOPMENT AND INNOVATION (“RDI”) CAPABILITY MATURITY MODEL (i) Committed compliance to achieve level 5 research development innovation capability maturity model; RDI CMM Level 100% (ii) Committed compliance to achieve level 5 knowledge competency maturity model for all FTE in research and development and innovation; KCMM Level 4.10 (iii) Committed compliance to full process of records internal audits without major critical discrepancies; compliance 100% (iv) Committed compliance to full production system external audits without major critical discrepancies. compliance 100% SUSTAINABILITY DEVELOPMENT INDEX ESG RATINGS (i) Committed compliance to achieve top 25% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell. ESG Ratings of PLCs assessed by FTSE Russell in accordance with FTSE Russell ESG Ratings Methodology; score 4 stars (ii) Committed compliance to achieve the inclusion into the FTSE4Good Bursa Malaysia Index; inclusion Yes (iii) Committed compliance to achieve the inclusion into the FTSE4Good Bursa Malaysia Shariah Index. inclusion Yes INNOVATION PROJECTS FOR SUSTAINABILITY DEVELOPMENT (i) Total accumulative green power project (KW) since 2018; kw 1,341,934 (ii) Total accumulative DIW recycling project since 2018 (Ton); ton 227,115 (iii) Total accumulative waste recycling project since 2018 (Kg). kg 306,159 SUSTAINABILITY REPORT (CONT’D)

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