Fraser & Neave Holdings Bhd Sustainability Report 2019

It has indeed been an exciting financial year ended 30 September 2019 (FY2019) for F&NHB. For us, some highlights are: • This year, F&NHB has been included into FTSE4Good Bursa Malaysia Index (F4GBM) for the first time, with positive results indicating our strong environmental, social and governance practices. • We fast-tracked our product innovation towards improving health and well-being of Malaysians. As a result, 90% of our ready-to-drink (RTD) beverages sold today are healthier options (below the sugar sweetened beverages excise duty threshold) and more importantly, consumers have responded positively to our reformulated products. Meanwhile, we also launched 11 new products and expanded our ‘Healthier Choice Logo’ (HCL) certified product range in Malaysia and Thailand from 20 in FY2018 to 41 in FY2019. • Over the year, we have garnered many accolades and awards which have recognised the strengths of our brands and best practices in the marketplace, including: *** ... in addition to improving eco- efficiency, F&NHB will be adopting a circular economy approach in managing the environmental impacts across our value chain. *** O ur brand promise of ‘Pure Enjoyment, Pure Goodness’, means that we want our products to provide enjoyment and nourishment to consumers. In other words, utilising the best ingredients, together with best practices in the way we source, produce and distribute. Equally important for our brand promise is to ensure that Fraser & Neave Holdings Bhd (F&NHB or the Group) is an integral part of our community, improving livelihoods across our value chain; that we are the employer and partner of choice providing opportunities for advancement and development; that we play a leading role in community development; and that we always demonstrate environmental responsibility and leadership. We are happy to report that this year, for the first time, our report has obtained external assurance from Lloyd's Register Quality Assurance, as part of third-party objective validation of our report content, data and processes, prepared in accordance with the Global Reporting Initiative (GRI) Standards. We continue to make positive strides towards achieving F&N Group’s 2020 sustainability goals and strengthen our approach in managing sustainability topics which are material to our business. You can view a summary of our progress relating to F&N Group’s 2020 Sustainability Targets on pages 030-031. Dear Shareholders and Stakeholders, • The F&N School Recycling Programme spread its wings to the entire Peninsular Malaysia and Sarawak. This year, participation rate doubled up to include 756 schools with an increase of up to four-fold of recyclables collected. More than 4.76 million kilogrammes of recyclables have been collected since we began our programme thirteen years ago. • We have also re-affirmed our commitment to advocating Halal, through our strategic collaboration with the Halal Industry Development Corporation (HDC) in the Halal Sourcing Partnership Programme 2019 (HSPP), to empower local SMEs to become suppliers of Halal-certified ingredients to other organisations, including F&NHB. 01 03 04 02 FDA Quality Award 2019 for seven consecutive years – F&N Dairies (Thailand) Limited Best Practices on Solid Waste Management 2018 – F&N Dairies Manufacturing Sdn Bhd (Pulau Indah plant) CSR-DIW Continuous Award 2019 for 9 consecutive years – F&N Dairies (Thailand) Limited Graduate's Choice Award 2019 (1 st Runner-Up for Fast Moving Consumer Good category) 005 S U S T A I N A B I L I T Y R E P O R T 2 0 1 9 Sustainability In F&N