Fraser & Neave Holdings Bhd Sustainability Report 2019

Healthier and Better Products The Aseptic Cold-Filling PET line at the Shah Alam plant has been producing 100PLUS ACTIVE, F&N SEASONS, and OYOSHI since March 2018. Employing state-of-the-art technology, the new line allows the use of lightweight containers, thereby reducing the use of PET resin packaging materials by 208 metric tonnes in FY2019. The line is also able to maintain a sterile environment within the aseptic chambers for a much longer duration, meaning less production downtime. This also allows us to bottle our products with no additional thermal stress and no added preservatives. This has accelerated our expansion into more product offerings, such as the three new healthier variants of new F&N SEASONS – Watermelon Lychee Tea, Apple Pomegranate Tea and Pu-erh Chrysanthemum Tea. Optimising Operational Efficiency of Our New Warehouse To further optimise operational efficiency, we have invested RM78 million in an Automated Storage Retrieval System (ASRS) at our new integrated warehouse at Shah Alam plant, which will commence operation in Quarter 2 of FY2021. The ASRS will manage the automated process of getting finished goods ready for delivery to market or the distributor’s warehouse. This system will drive improvement through: • More accurate stock management • The elimination of product damage caused by mishandling • In-sourcing of break bulk activities • A reduction in the amount of time workers need to be at the warehouse • An improvement in warehouse safety ASRS will also be implemented in the new Distribution Center at Rojana. A S R S P R O C E S S F L O W ASRS • Finished Goods (FG) stocks stored & managed by the WMS system • FG stock will be packed based on Sales Order and ready for delivery • The packing process includes bulk & loose packing Manufacturing Plants Distributors Warehouse/ Direct Deliver y to Market WWW . F N . C O M . M Y F R A S E R & N E A V E H O L D I N G S B H D 040 DRIVING ECONOMIC VALUE