Press Metal Annual Report 2024

Integrated Annual Report 2024 SECTION 2 • MESSAGES FROM OUR LEADERS 17 FOREWORD BY GROUP CEO Throughout 2024, we navigated a rapidly evolving and dynamic macroeconomic landscape shaped by market volatilities, geopolitical tensions and policy uncertainties. Despite these external complexities, the strong foundation we have built over the years has enabled us to steer through headwinds successfully, achieving a record-breaking financial performance. Our agility, ability to adapt, low-carbon products and upstream integration have strengthened our position as SEA’s largest integrated aluminium producer. As we reflect on our achievements in 2024, we remain steadfast in our mission to create value for our stakeholders while contributing to a greener future. We aim to strike an optimal balance between economic returns and corporate responsibility so that both can advance in tandem for Press Metal. We have a clear roadmap to continue increasing our competitiveness in the global arena and we take proactive steps today to shape tomorrow’s opportunities. Management Discussion and Analysis by Group CEO KEY HIGHLIGHTS OF 2024 Record PATAMI of RM1.8 billion Achieved a 45% y-o-y growth, driven by strong smelting performance and higher contributions from associate companies Continued ESG progress and recognition Upgraded MSCI ESG rating from ‘A’ to ‘AA’, underscoring our commitment to responsible and sustainable business practices Introduction of GEM™, our low-carbon aluminium brand Produced with a carbon footprint significantly lower than the industry average, measured within a cradle-to-gate boundary, reinforcing our commitment in sustainable aluminium solutions Higher contribution from Value-Added Products Value-Added Products (“VAPs”) which generally provide higher margins accounted for 47.9% of total sales volume in FYE2024, up from 40.6% in the previous year Strategic expansion in upstream alumina refineries Strengthening long-term alumina supply security to reduce reliance on third-party sources The global aluminium market in 2024 was marked by significant volatility, shaped by a complex interplay of geopolitical tensions, shifting trade policies and supply chain disruptions. Aluminium prices began the year above USD2,100 per tonne, reaching a peak of circa USD2,700 per tonne in May. This surge was driven by continuous demand from industries tied to renewable energy, rising raw material costs and restocking activities. However, a weaker-than-expected economic data combined with limited policy support for industrial growth led to a price correction in mid-2024. Prices rebounded to above USD2,500 per tonne by the end of the year, buoyed by lower US interest rates and persistent supply constraints in both the aluminium and alumina markets. The global transition towards a low-carbon economy has emerged as a defining trend, significantly influencing the aluminium industry. As industries worldwide accelerate their decarbonisation efforts, the demand for sustainable aluminium has surged. Aluminium’s unique properties — lightweight and recyclable — make it an essential material in renewable energy infrastructure, EVs and energy-efficient buildings. This shift towards sustainability has created a growing preference for low-carbon aluminium, positioning Press Metal advantageously in the market. Our commitment to producing low-carbon aluminium, powered by renewable hydropower, aligns seamlessly with the increasing demand for environmentally friendly materials. Trade tensions and tariff policy changes have also reshaped the global aluminium landscape with the implementation of tariffs and imposition of restrictive policies toward certain countries. Although these may complicate supply chain and metal flow, we will seek to leverage upon these shifting dynamics to our advantage. The “China Plus One” strategy is expected to spur the development of a new supply chain ecosystem in SEA. This has opened up opportunities for alternative material supply sources, and Press Metal is strategically positioned to capitalise on these shifts. Elevated alumina prices posed a significant challenge for aluminium producers worldwide in 2024. Although alumina prices began to ease towards the end of the year, risks remain, particularly in bauxite sourcing due to policy changes and supply disruptions. In response, Press Metal has intensified its focus on leveraging upstream alumina assets and enhancing vertical integration capabilities. By securing a stable supply of raw materials and optimising our production processes, we aim to mitigate the impact of price volatilities and strengthen our operational margins. INDUSTRY TRENDS & MARKET DYNAMICS

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