Upholding Good Governance and Economic Resilience Press Metal Aluminium Holdings Berhad SECTION 5 • DELIVERING SUSTAINABLE VALUE FOR OUR STAKEHOLDERS 104 Ensuring Ethical Tax Governance A responsible approach to tax governance is fundamental to maintaining transparency and accountability. Our Tax Policy establishes a clear guideline, with oversight from the Board and Audit Committee to reinforce compliance with relevant laws and regulations. Ethical tax practices are embedded into our business operations, aligning with international standards and best practices. We recognise that tax contributions are vital in supporting government budgets and national development initiatives. Our policies are structured to reflect economic activities in each jurisdiction and tax obligations are met accordingly. We reinforce trust in the way we conduct business, with an understanding that artificial tax arrangements and undisclosed offshore structures with no legitimate business purpose have no place in our operations. Managing tax-related risks requires diligence. Where complexities arise in tax law interpretation, we seek professional advice from qualified third-party advisors to ensure compliance with evolving regulations. This proactive approach strengthens financial stability while minimising risk exposure. To uphold ethical conduct, we provide a whistle-blowing platform for stakeholders to report concerns that relate to tax misconduct or illegal activities in good faith. By embedding transparency and accountability into every aspect of tax governance, we build trust with regulators, investors and the communities in which we operate. Read more about our economic, market and operations updates in the Management Discussion and Analysis by Group CEO section of this IAR 2024. We continue to strengthen our financial resilience and positioning for long-term growth. A series of strategic initiatives were undertaken during the year to enhance upstream integration, expand product offerings and support the transition towards a low-carbon economy. Strategic Investment in Alumina Refinery In September 2024, we announced an equity participation of 80% in a new alumina refinery, PT KAN in Indonesia. The facility will encompass a refinery plant, power plant, jetty and supporting infrastructure. Phase 1 of the project targeted an annual production capacity of 1 to 1.2 million metric tonnes, with future expansions expected to double this capacity. This development enhances supply chain resilience while supporting long-term growth in aluminium production. Expansion of Value-Added Products Expanding VAPs has been a key focus, with VAPs contributing 47.9% of total sales volume in FYE2024, up from 40.6% in the previous year. Growth has been primarily driven by increased demand for wire rods and foundry alloys. Strengthening our product mix aligns with our strategy to enhance competitiveness in key markets while meeting evolving customer requirements. Diversified Extrusion Capacity for High-Growth Sectors Extrusion capacity has been expanded by 30,000 metric tonnes per annum to support rising demand in the solar panel and EV industries. Introduction of Low-Carbon Aluminium Series, GEM™ and CYCAL™ The introduction of our low-carbon aluminium series, GEM™, offers a sustainable solution for industries seeking to reduce their environmental footprint without compromising on performance. GEM™ is produced with less than 4.0 metric tonnes of CO2e per metric tonne of aluminium for Scope 1 and Scope 2 GHG emissions. In addition, CYCAL™ billet, which integrates GEM™ with high content of recycled aluminium, are offered in 50% (CYCAL™ 50) and 80% (CYCAL™ 80) recycled aluminium content respectively. The CYCAL™ series offers optimal balance of quality and reduced carbon emissions, further enhancing our commitment to sustainable aluminium production. OUR VALUE CREATION
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