Frontken Berhad Annual Report 2023

Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 33 GOVERNANCE INDICATORS UNIT OF MEASURE FY2023 CORPORATE GOVERNANCE (cont’d) VI. Committed compliance to conduct periodic full internal audits and evaluation on all operating business units to identify potential risks areas; risk level extremely low VII. Committed compliance to full compliance of periodic evaluation of board effectiveness; including disclosure of number of times the board/each committee have/has met per annum. effectiveness level extremely high TAX COMPLIANCE I. Zero incidents of tax non-compliance for each period. number of incidents 0 INFOTECH AND DATA SECURITY I. Zero incident of data loses for each period; number of incidents 0 II. Zero incident of security breaches for each period. number of incidents 0 In the reporting period of FY2023, we achieved the following: (cont’d) RESPONSIBLE INNOVATION AND SERVICES In FY2023, Frontken continued its dedication to technological advancement by developing advanced precision cleaning and coating technologies for the 3nm process in Taiwan and the 8nm process in Singapore. Additionally, the company took a leadership role in advancing precision cleaning and coating for the next generation memory wafer processes in both Taiwan and Singapore. The research and development (“R&D”) team in FY2023 focused on strengthening the innovation platform, increasing R&D activities, and addressing sustainability challenges such as climate change and pollution control. The team also dedicated efforts to develop more specialised capabilities and environmentally friendly methods for chemical management, coating, and cleaning processes. Importantly, improvements were made in production process flow and productivity, with a particular emphasis on replacing hazardous steps and processes to ensure the safety and well-being of employees and the environment. Frontken’s sustainability development initiatives placed a strong emphasis on environmental safety management. Innovative projects were designed to effectively reduce occupational hygiene risks, enhance workplace environments, and improve employee health management. The successful implementation of an automated cleaning system significantly minimised employees’ exposure to hazardous substances, leading to the recognition of our subsidiary, Ares Green Technology Corporation, with an award from a major customer for outstanding efforts in Supply Chain Environment, Safety, and Health. Frontken’s commitment to ESG practices has garnered high ratings and an excellent overall industry score. The company’s inclusion in the FTSE4Good Bursa Malaysia Index and the Bursa Malaysia Shariah Index reflects its alignment with sustainable and responsible business practices. These achievements showcase Frontken’s ongoing commitment to technological innovation, environmental sustainability, and responsible corporate citizenship. SUSTAINABILITY REPORT (CONT’D) RD

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