Messages from Our Leaders Messages from Our Leaders Press Metal Aluminium Holdings Berhad 14 15 Integrated Annual Report 2023 Chairman’s Statement Chairman’s Statement With our strong cash flow, a healthy debt-to-EBITDA ratio and strong liquidity, we have been able to effectively balance our transactional working capital and longer-term funding needs. This has resulted in a resilient financial framework for the Group, enabling us to allocate appropriate capital for investments in Environmental, Social and Governance (“ESG”) initiatives, new technologies and employee housing, amongst other areas. It also positions us well to seize potential expansion, acquisition and partnership opportunities. A YEAR OF ADDED VALUE AND SUSTAINABILITY PROGRESSION In FYE2023, we made commendable progress in strengthening our position across the aluminium value chain. In the upstream segment, our joint investments in Australia, Indonesia and China played a pivotal role in ensuring raw material security and streamlining our logistics costs, enabling us to improve our margins and drive enhanced financial synergies. Meanwhile, the establishment of a 30,000-tonne solar extrusion line at our Nilai plant in Malaysia opens the door for us to expand our production to include photovoltaic components and mounting extrusions, increasing our presence in the burgeoning solar energy sector. Within the context of sustainability, I am delighted to report that we maintained our status as a constituent of the FTSE4Good Bursa Malaysia Index with a four-star rating. Additionally, three (3) of our manufacturing plants – PMBtu, PMS and PMI – have obtained the Performance Standard certification from the ASI. These achievements are a testament to our unwavering commitment to sustainable aluminium manufacturing practices. Moreover, we have been recognised for the strong steps we are taking towards achieving carbon neutrality by 2050 and are making progress in reducing our Scope 3 greenhouse gas (“GHG”) emissions. This is happening in concert with close vendor and partner collaborations which aim to futureproof our decarbonisation actions and make them integral to our operations. In addition, we are amongst the leaders in implementing the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”), through which we are enhancing the clarity, quality and transparency of our climaterelated disclosures. These proactive measures are enabling us to stay ahead of the fast-evolving regulatory landscape on emissions and climate action, solidifying our leadership in sustainability within the Asian aluminium industry and positioning us competitively amongst our customers, suppliers and partners. In our social sustainability thrust, we remained committed to fostering healthy and liveable communities, delivering over RM6.3 million of in-kind contributions to local community programmes in FYE2023, with our employees completing approximately 7,700 volunteer hours in community engagements. These initiatives are elaborated on in detail in the Community Management topic within our Sustainability Report 2023. In addition, the Board has approved in principle a capital budget over three (3) years for the construction of a new township to house our employees working at Samalaju Industrial Park, Bintulu, and the development is currently in progress. The township will provide our employees with a range of commercial and recreational facilities, enhancing everyday convenience and improving their quality of life. It is another way that we are advancing our talent retention efforts. In governance, we continued to build the Board’s capacity to lead our holistic climate and ESG agenda while addressing the challenges involved in developing a viable and credible transition strategy – including issues surrounding appropriate disclosures, capital allocation and progress tracking. Given our expansion in recent years and the fast-evolving traderelated regulatory landscape, the Board is focused equally on improving our compliance oversight and enhancing our internal controls to drive operational efficiency, including by leveraging new technologies and artificial intelligence (“AI”) where feasible. On this note, our Management team is at the forefront of digitising and future-proofing our operations. In this vital area of competency, we strive to remain well ahead of the rapidly changing technology landscape, proactively identifying areas where technology adoption can advance our objectives as a business while upskilling our workforce to maximise our potential. ACKNOWLEDGEMENT Effectiveness and high performance stem from translating strategies into actionable outcomes. On this note, I would like to extend the Board’s sincere appreciation to our Senior Executive Management team for stepping up to assume joint responsibility for our success with unceasing diligence, commitment and focused teamwork. Their efforts, supported by the dedication of our people and talents across the Group, have been instrumental. I would also like to express my heartfelt gratitude to our shareholders, stakeholders, suppliers, partners, bankers and esteemed Board members for their unwavering support and confidence throughout the year. As we look ahead to 2024, we remain committed to further Fortifying Our Position by remaining transparent and responsible on our journey towards carbon neutrality, sustainable growth and value creation. DATUK YVONNE CHIA Independent Non-Executive Chairman April 2024 A CAUTIOUSLY OPTIMISTIC OUTLOOK FOR 2024 In 2024, the global green transition will call upon all industries to step up. We anticipate increased demand for low-carbon aluminium and see opportunities for growth in emerging sectors such as EVs and green energy infrastructure. Our own transition plans are robust and we remain flexible to adapt and adjust them if advancements in technology necessitate changes. However, the global aluminium outlook remains subdued, reflecting the subdued macroeconomic landscape and ongoing geopolitical uncertainties. Supply chain disruptions due to sanctions or bans in certain areas may also lead to short spikes in demand and prices. Nevertheless, armed with a robust financial structure, greater flexibility and a commitment to sustainable growth, pillared on our dedication to innovation, we are well positioned to navigate these cycles and stay on track to achieve our midto-long-term value creation goals. 7,700 volunteer hours by our employees in community engagements Approximately RM6.3 million in contributions to local community programmes Over
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