FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 29 Sustainability as a Value-Creation Strategy We have dedicated significant resources to digitisation, integration, and full control of sustainability initiatives, ensuring measurable outcomes and accountability. These investments deliver tangible benefits: (a) Profitability through efficiency: Reducing waste and optimising resource use lowers costs and enhances margins. (b) Risk mitigation: Proactive climate and pollution control strategies safeguard operations against regulatory, reputational, and environmental risks. (c) Enterprise value growth: Sustainability strengthens brand equity, investor confidence, and customer loyalty. (d) Integrity and reputation: Transparent governance and ethical practices protect shareholder interests and reinforce trust. At the core of our strategy is the belief that sustainability is inseparable from long-term business success. Technology as a Competitive Advantage Frontken Group’s advanced technologies empower customers to create sustainable products and services. By extending the lifespan, performance, and appeal of critical parts used in production processes, we enable customers to: (a) PROTECT surfaces against wear, reducing replacement costs. (b) PRESERVE materials for longer lifespans, minimising resource consumption. (c) PROVIDE sustainable solutions through recycling, repairing, refurbishment, re-engineering, and re-coating. These innovations not only reduce environmental impact but also unlock new revenue streams by transforming sustainability challenges into market opportunities. Aligned with Global Standards Guided by the United Nations Sustainable Development Goals, we actively pursue opportunities to re-engineer shared value from fewer resources. Our approach transforms societal and environmental challenges into innovative solutions, positioning Frontken Group as a trusted partner for global customers seeking sustainable growth. In 2025, We started to adopt IFRS responsibility. The IFRS report are presented separately. We believe that excellent corporate governance amplifies sustainability impact, ensuring transparency, accountability, and ethical leadership. This alignment fosters long-term resilience, strengthens investor confidence, and contributes positively to society and the environment. Investments in Sustainable Operations Frontken Group has invested significant time and resources in transitioning toward sustainable, digital, and automated business models. Our success is evident in: (a) Digitisation of advanced production systems. (b) Expanded production capacity. (c) Re‑engineering efforts in water usage, conservation systems, renewable energy, and waste treatment/discharge systems. These initiatives have positioned us as leaders in semiconductor parts processing support technology and environmental sustainability, reinforcing our competitive advantage in global markets. SUSTAINABILITY REPORT (CONT’D)
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