Fraser & Neave Holdings Bhd Sustainability Report 2021

Material Issues of F&N Opportunities for F&N if issue is addressed Potential Risks for F&N if issue is not addressed Governance & Ethics Business policies and practices to ensure ethical, transparent and responsible governance. • Upholding F&N’s reputation as a responsible business maintains trust amongst all stakeholders • A reputational risk is failing to put in place transparent and sound governance Policy & Regulation Regulatory compliance across our operations and engaging with policy-makers in a responsible and transparent manner. • Engaging with regulators allows F&N to prepare for emerging legislation and ensure compliance • Risk of lack of preparation to comply with emerging regulations • Reputational risk is failing to put in place transparent and sound policies Economic Performance Financial performance to deliver shareholder value and secure long-term viability of the company. • Sustainable financial performance creates long-term value for all stakeholders • Hinder F&N’s business continuity Product Quality & Safety Delivering products to consumers which meet the highest quality and safety standards. • Deliver F&N’s brand promise to consumers through product excellence • Retain and increase market share through product range expansion and portfolio diversity • Reputational risk and customer claims arising from a break in the supply chain or compromised packaging outside the factory • Regulatory changes that may a*ect product recipe and/or packaging Product & Service Labelling Labelling our products and services in a responsible and transparent way for consumers. • Meet regulatory requirements • Meet consumer expectations relating to product and ingredient communication • Failure to meet stakeholder expectations on transparency of product information Innovation Building competitive advantage through innovative products and solutions to meet consumer and societal needs. • Meet customer and consumer demands and stay relevant • Adoption of emerging and disruptive technologies increases competitive edge • High investment cost in R&D and equipment with uncertain commercial returns • Balancing between risk of non- acceptance by consumers and risk of being overtaken by competitors Supply Chain Stewardship Procurement policies, contractor management and supplier relationships which address material issues across the value chain. • Elevate vendors’ productivity and performance in sustainability practices and compliance with food safety standards. • Cost savings with stronger collaboration • Establish robust policies and systems to ensure competitive pricing and safeguard vendors from corruption and malpractice • Many ESG risks are present in F&N’s supply chain (e.g. human rights, product quality); unethical practice leads to regulatory violations, monetary fines and reputational risk • Disruption to operations • Price fluctuation as a result of global economic performance and foreign exchange exposure Better Business rt iti s f r if iss is r ss otential isks for F if issue is not addressed Our Sustainability Approach 025 Fraser & Neave Holdings Bhd ! Sustainability Report 2021 Material Issues & Importance