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SUSTAINABILITY REPORT 2018

OUR JOURNEY TOWARDS SUSTAINABILITY

‘Our passion in the automotive industry focuses on building a strong and comprehensive business model that caters to the customers’ needs at all levels; from selling the vehicle to upgrading vehicles with tuning and body kits, aftersales and body and paint works. Investments in our distribution network focuses not only on geographical presence, but also in the upgrading of existing facilities and aftersales capacity, which undoubtedly strengthens our business, delivering both growth and a sustainable revenue stream.’

‘By shouldering our responsibilities today,we lay the foundation in pursuing our future success.’

Sustainability Report 2018 11Sustainability Report 2018

CONTENTS02 Overview

06 Statement from Our Chairman

07 Sustainability Governance

08 Keys to Sustainability

18 Stakeholder Engagement

20 Materiality Matters

MBM RESOURCES BERHAD2

OverviewAbout This ReportMBM Resources Berhad (MBMR) is mindful of the responsibilities to ensure that the Group operates and expands in a sustainable manner.

Through this sustainability report we aim to provide a better insight into our Group’s sustainability activities and practices. This report

also shares the efforts and initiatives taken by all subsidiary companies in supporting the sustainability of the business which benefit all

employees. This report should be read together with our Annual Report to obtain a comprehensive picture of our organisation’s financial

and non-financial performance.

As the Group has only just embarked on its transformation of formalising its sustainability practices, readers should be aware that our

sustainability framework remains a work in progress. MBMR recognises that sustainability is an iterative and continual process and future

reports will improve on areas including performance target and achievements.

We will provide information on our management of sustainability risks and opportunities in the areas of Economic, Environmental and

Social (“EES”). It also identifies the Group’s material sustainability issues as well as stakeholders with direct or indirect interests in our

company’s activities. Our materiality assessment and stakeholder identification and engagement process are specified in full in the

following sections of this report.

The coverage of this report is limited to our core businesses in Malaysia where the Group holds management control. All our business

divisions – manufacturing and trading, are covered in this report.

OVERVIEW

Sustainability Report 2018 3

About UsMBM Resources Berhad (MBMR) is an automotive group with diverse investments in distributorship and dealership of major international vehicle brands, automotive parts manufacturing and property developments in Malaysia.

Motor trading segment covers marketing and distribution of motor vehicles, spare parts and provision of related services. Auto parts segment comprises manufacturing of automotive parts and components, steel and alloy wheels and discs, noise, vibration and harshness products and provision of tyre assembly services.

Property segment includes development of Menara MBMR, while other segments encompass investment holding, corporate headquarter and dormant companies.

Motor Trading Manufacturing

Our Brand Partners

OVERVIEW

Our Vision

To be a Complete Automotive Group

Our Mission

To be the Automotive Partner of Choice to our Employees,

Customers and Investors


Our Core Values

We strive to promote and uphold these values for the whole Group:

Zero wasteDiscourage waste of assets and opportunities, leakage of business and abuse of assets; properly plan, fund and execute projects. SkillsValue and continuously develop our skills.

CaringBe aware of the impact of our activities on the environment. Safeguard the environment and engage actively with the community; ensure a safe and clean workplace.

RewardRecognise and reward accomplishments fairly and competitively. Honesty and IntegrityWe conduct our business with honesty, integrity and responsibility to safeguard our reputation and in compliance with legal and regulatory requirements.

Respect We treat our people, customers, suppliers and stakeholders with respect.

TeamworkWork as a team in a participative environment to achieve better results. Continuous ImprovementChallenge each other to do better and promote a performance-driven work environment. PassionBe the best we can and take pride in our work. Drive towards achieving targets and then exceed them. DiversityCelebrate the richness of an environment that comes from a diverse workforce in gender, race and age.

CORE VALUES

Honesty& Integrity

Respect

Teamwork

ContinuousImprovement

Passion

DiversityZeroWaste

Skills

Caring

Reward

OVERVIEW


Our Sustainability Vision

Realising Our Aspiration InBecoming A Complete Automotive Group

With A Better Future

Our passion in automotive drives our business growth in the face of a challenging operating environment. We believe that our dedication and responsibilities in sustainability will gradually refine our vision and mission.

Our aim in sustainability is to sustain the business and ensure we contribute positively to the environments in which we operate and seek to reduce any potential negative impacts. We are committed in accomplishing our sustainability practices and activities in all our subsidiary companies across all the three core areas of impact:

ECONOMIC ENVIRONMENTAL SOCIAL

OVERVIEW


Statement From Our Chairman

Year 2018 was a relatively good year for Malaysia’s automotive industry in spite of a flattish growth rate and challenges in the market as end financing remains difficult. MBM Resources Berhad (MBMR) however embarked on a plan called ‘streamlining’ to strengthen its management, harness its group synergy and ditch non-performing business. The Group has thus far achieved a very encouraging result supported by improved turnover and better than expected contribution from associates.

In view of MBMR’s commendable results and as part of our continued commitment to maximising shareholders’ return, the Board of Directors recommends a final dividend of 6 sen per share, to be approved at the forthcoming Annual General Meeting (AGM). The interim dividend and final dividend will represent a total gross dividend of 12 sen for the financial year ended 31 December 2018.

In the year 2019, MBMR will continue with its strategy to consolidate its business entity and will look forward to new opportunities in automotive vendorship and retailing. It is MBMR’s final objective to be ‘The Complete Automotive Group’ recognised by its peers in the industry and by its stakeholders. MBMR is also appreciative of the support and commitment of its management and staff who continue to perform exceptionally well in spite of the likely challenges faced by the Group in the year ahead.

The MBMR Group is very much aware of the impact of its business on the environment. The Group is confident of sustaining its growth and at the same time protecting the environment for future generations. This report will provide the progress of our journey for a comfortable living environment based on sustainable growth.

DATO’ ABD RAHIM BIN ABD HALIMChairman

STATEMENT FROM OUR CHAIRMAN


Governance StructureAs part of our obligation towards sustainability, we established a governance structure for the Group, with the goal of enhancing the interest of our stakeholders and considering the interest of others such as our employees and the wider community. This structure ensures that the Group’s sustainability development is continuously monitored, supervised and all activities are implemented accordingly throughout the year. In 2017, the Sustainability Management Committee (SMC) was formed, led by the President & Chief Executive Officer (CEO) of MBMR. The SMC reports directly to the Board of Directors of MBMR as the Board is ultimately responsible for the Group’s sustainability strategies. The immediate role of the SMC upon formation was to raise awareness on the importance of sustainability practices within the Group and to identify the key sustainability matters being practised in or to be incorporated into the Group’s businesses.

The SMC is headed by the President & CEO of the Group and is supported by the Vice President of the Auto Parts Manufacturing Division, Vice President of the Motor Trading Division and the Chief Sustainability Officer (CSO). A Sustainability Team is set up in each subsidiary group to support the subsidiaries in attaining their sustainability development goals while contributing constructively in the adaptation of the goals.

The Sustainability Governance structure is as follows:

Sustainability Key Personnel ResponsibilityBoard of Directors

• The Board oversees the effective function of the Board and the implementation of governance best practices. • Ensure business strategies are sustainable.• Approve the final report before submission to Bursa Malaysia.

Sustainability Management Committee• The Committee members are responsible in reviewing and making recommendations to the Board on the policy and performance in relation to the three keys of sustainability i.e. economic, environmental and social. • Develop and oversee sustainability strategies and recommend to the Board.• Oversee subsidiaries function in sustainability activities.• Support and provide leadership on implementation of sustainability strategies.• Develop plans and timelines for disclosure.

Subsidiaries Sustainability Team

• Senior leadership directs and oversees programmes or any activities related to social (communities), environmental and human resources.• Reports on performance and developments of the programmes/activities.

All Staff of MBMR Group• Support in implementing sustainability programmes and initiatives. • Report to senior leadership on the progress of the activities and is responsible in ensuring that the activities benefit all related parties.

Autoliv Hirotako Sdn Bhd (AHSB)

Sustainability Team

Hirotako Acoustics

Sdn Bhd (HASB) Sustainability

Team

Daihatsu (M)Sdn Bhd(DMSB)

Sustainability Team

Federal Auto Holdings

Berhad (FAHB) Sustainability

Team

Oriental Metal Industry (M)

Sdn Bhd (OMI) Sustainability

Team

All Sta� of MBMR Group

Sustainability Management Committee(CEO/CSO/Working Committee)

Board of Directors

Sustainability Governance

SUSTAINABILITY GOVERNANCE


KEYS TO SUSTAINABILITY

ECONOMIC

RECOGNISING ECONOMIC SUSTAINABILITY IN MBMR GROUPIn most situation it is a cliché that economic growth is the main contributor to the environmental problems. Various government bodies are taking steps to strengthen environmental regulations while indirectly affecting the growth in business activities. MBMR believes that business growth and sustainability activities complement each other and there are business practices of development that are both environmentally and socially sustainable. Hence, MBMR is looking towards structuring our business on long term benefits while attending to profit growth and sustainability activities. Our business and societies can find approaches that will move towards all three goals – economic growth, environmentally friendly and social wellbeing during the same time the business operates. In comprehending the economic sustainability, MBMR Group has been practicing approaches in balancing profit growth and sustainability. In MBMR, our day to day business operations is geared towards paperless activities. The normal cost associated with office management such as papers, printer toners and cartridges are being reduced to meet environmental needs of going paperless. This cost reduction on administrative operations will as much as possible reduce cost on office expenses. This reduction is not only limited to stationery supplies but also covers the stock control procedures which includes tracking and accounting items that we use. The cost for schedule maintenance need to be monitored to ensure items are well appreciated and are upheld for maximum value of usage. The goal of changing the way we work is to reduce the amount of waste and to save cost on any areas possible to ensure the effectiveness of the initiated programme. The success of this cost cutting programme will reduce the amount of waste. The accomplishment in the programmes will reflect the efficiency of the methods and steps taken not only to reduce cost to sustain the business but also in sustaining the environment.

As a Malaysian public listed company, one of our focuses is to support the nation’s economy. MBMR have faith in supporting the local businesses, while creating more employment and enhancing people skills. We encourage the local businesses expansion by giving opportunities and supporting the local suppliers as part of our supply chain network. By motivating and supporting the local vendors and suppliers, we believe that our contribution will bring substantial development to our business. On top of this ambition, we also realise the benefits of localising our resources and the several benefits that we can achieve by localising our needs.

In general, MBMR Group outsources 74 percent to local vendors and suppliers for materials needed in running the Group’s businesses. Some of the benefits and advantages of sourcing locally are as follows.

FlexibilityThe local suppliers are typically more responsive than suppliers that are situated overseas. The local suppliers are able to respond quickly and deliver products quicker. It is much easier for a local

KEYS TO SUSTAINABILITY - ECONOMIC

• Paperless• Productivity managmeent• Comply to DOE requirements

• Paperless• Minimising advertisement• Repair & Maintenance

• Paperless• No gift policies

• Consumeable items• Subscriptions

• Paperless• Cost Optimisation

• Sta� productivity• Use local raw materials

• Comply to regulatory's requirements

HoldingCompanyProperties

MotorTrading Manufacturing

Cost Reduction Measures

Overseas26%

Local74%

Percentage of Local and Overseas Suppliers


supplier to coordinate a shipment within the neighbourhood than across the oceans.

Quality ControlIn terms of quality control, our manufacturing companies noticed that local suppliers tend to have better management control on product quality. All enquiries can be solved within a short period by visiting the local suppliers who are situated close to our manufacturing facilities. The manufacturing team has the advantage to visit the production site and to inspect the quality of the ordered items. This face to face visit allows us to address any concerns and to ensure all products meet the required standards. Reduce CostsSupply chain cost reduction also plays an important part in achieving our goal in sustainability. In 2017, MBMR streamline its operations which includes reducing the costs of raw material supplies and also costs involved in transportation. These practices have shown great improvements in lowering expenses especially in the MBMR Group Manufacturing Division as part of the action taken was to switch overseas raw material supplier to a local supplier. Cost reduction can be seen on the price of the materials, transportation charges, taxes and warehouse charges. Higher RevenueThe reduced costs cut expenses while giving the opportunity to the Group to generate more revenue.

Boost Nation’s EconomyOutsourcing locally creates opportunities for the local suppliers and makes them more enterprising, creating economicbenefits locally. Environmentally FriendlyLocally purchased materials will save cost in transporting the goods and indirectly reduce carbon emissions which leads to healthier and cleaner environments.

ENVIRONMENTAL

EARTH CONSERVATION IS OUR OBLIGATIONMBMR has always advocated sustainability and environmental awareness within the Group. The Group continuously engages all employees in various environmental related activities such as recycling, reducing energy consumption, reusing products or reproduction.

Due to the nature of MBMR Group’s businesses, we understand the necessity to monitor the potential pollution and carbon emissions from our businesses. The Group complies with the strict regulations and requirements by regulators to ensure that our businesses minimise pollution and lower carbon emissions as much as possible.

We consistently motivate and encourage our employees to engage in environmental protection activities such as reducing energy and water consumption, recycling and reducing waste, reusing items such as mechanical parts, carton boxes and plastic bags as well as in reproducing materials such as machining chips and scraps processed as secondary ingots.

Our people’s commitment is also valuable in supporting this goal by ensuring that the programmes are implemented. Other than playing the main role in supporting the business goals, our employees also take initiative to participate in energy saving activities in their day-to-day operation such as switching off electrical supplies before leaving the office or workstation.

To reduce energy consumption, the Group conducted various initiatives including installation of LED lighting, scheduling plant shutdowns during low volume period, maximising the use of heat for melting process and using timer control. We will continuously improve the facilities to be more energy efficient and environmentally friendly.

Apart from energy saving, the Group also took initiatives on water management and treatment. Both the Auto Parts Manufacturing and Motor Trading Divisions are continuously promoting awareness on the importance of water conservation.

To manage waste issues in the Group, we dutifully abided to the regulatory requirements in handling waste management. Every month without fail, our Health & Safety Environment (HSE)

KEYS TO SUSTAINABILITY - ECONOMIC / ENVIRONMENTAL

Flexibility

HigherRevenue

ReducedCosts

BoostNation'sEconomy

SUPPLIERS'LOCALISATION

EnvironmentallyFriendly

Product'sQualityControl

Benefits of Localisation in MBMR Group


KEYS TO SUSTAINABILITY - ENVIRONMENTAL

officers report the company’s environmental safety activities to the Department of Environment (DOE). Our aim in prevention, reduce, reuse, reproduction and minimise disposal are also monitored by the HSE team to ensure the implementation and the effectiveness remains.

Using emerging technologies and renewable energy has also been part of MBMR’s achievements. Menara MBMR, where our corporate office is situated, is a Green Building Index (GBI) Certified building. With the aim of reducing the waste of energy and environmental impact, the building’s lighting in the basement car parks are supported by energy produced through the building’s solar panels located on level 22 and the roof top. Each unit within the building also comes with its own individually-controlled, dedicated air-conditioning system – making it highly energy efficient and cost effective.

EnergyMBMR has implemented energy saving programmes across its organisation and the improvements are developing. There is a lot we can still do as an organisation and as well as an individual to reduce our energy usage. Simply switching to LED lightbulbs has reduced our manufacturing energy usage of lighting by a quarter. The change may not be so significant but it is part of the programme that is easily adopted by either the company or individual.

For manufacturing facilities to optimise energy consumption and reduce energy costs, it is crucial to have real-time insight into equipment, inventory, maintenance schedules and utilities. Facility or schedule plant shutdown also reinforced in accordance to the low production season. The plant shutdown is vital for the production facility as it provides the opportunity for the engineering team to carry out major maintenance to the plant as well as equipments.

Inefficiency of facility maintenance can lead to very high energy consumption. Most facilities are billed for energy at two different rates; higher during peak hours and lower during non-peak hours. A lack of coordination between maintenance and production schedules can result in inefficiencies, higher energy costs and lower returns.

The Group also implement certain edification and reconfiguration of critical utilities and enhance energy efficiency. To reduce energy consumption, the Group conducted various initiatives including installation of LED lighting, schedule plant shutdowns, maximise the use of heat for melting process and use of timer control. We will continuously improve the facilities to be more energy efficient and environmentally friendly.

Note: The electricity consumption across the Group showed some increase in 2018 due to higher production in the manufacturing sector and increasing demands in motor trading.

AHSB

2,81

8,12

8

2,88

1,932

HASB

2,28

7,92

3

2,36

9,81

1

OMI

2,16

1,895

.6

2,08

7,93

9.66

DMSB

1,118

,241 1,5

64,5

53

FAHB

2,57

2,96

9

2,03

1,573

2017 2018

Electricity Consumption Comparison inKwh measurement for 2017/2018.

Solar panel installed on Menara MBMR’s roof top

Installed skylight on roofing to introduce natural lightings inside OMI plant



WaterMost of us often take the availability of water for granted. Though water is a renewable resource, not many of us or companies renew the resource. The increase of water consumption is partly caused by an increase in economic and population growth. Water scarcity is gradually becoming a critical issue yet again not many of us are really looking into ways to overcome the water issues. However, MBMR has taken the initiative on water conservation management and treatment. Both manufacturing and trading sectors are continuously promoting awareness on the importance of water conservation in its production and operations activities. The manufacturing sector has been practising water recycling and treatment to be re-used as part of our efforts to reduce water consumption. Our goal stipulates that we use the resources efficiently and prevent pollution. Our manufacturing sector will continuously work on reducing the volume of water consumption by using more recycled water in the production process. Currently, there is no serious water risks detected that could affect our business operations. However, we will keep on monitoring water conservation and control the usage by focusing on campaigns to reduce water consumption both in production process and individually amongst our people.

Note: The water consumption across the Group showed some increase in 2018 due to higher production in the manufacturing sector and increasing demands in motor trading. Productivity level comparisons for years 2017 and 2018 are shown in the graph above.

Rain water is harvested and stored for cleaning purposes.

Rain water harvest located on Level 5, Menara MBMR

2017 2018

AHSB

OMI

DMSB

HASB

52,962

52,654

FAHB23,113

23,094

376,746

445,122

6,777

5,989

12,616

11,128

Water Consumption Comparison inCubic Metric (M3) measurement for 2017/2018.



Note: Manufacturing productivity are based on production achievement and general consumption from January to December of each year. Motor trading productivity are based on aftersales achievement and general consumption from January to December of each year. Waste ManagementAs a growing organisation, we are definitely facing issues in managing waste. But there are always ways to encourage our people to reduce, re-use and recycle.

It becomes even more meaningful for us to take the initiative amongst our own people and communities. One of our approach in waste management is to encourage our people to continue recycling, upcycling, salvaging and transforming.

2017 2018

AHSB

2,09

5,00

0

2,28

8,00

0

HASB

816,

000

664,

000

DMSB12

6,32

1

139,

711

FAHB

50,2

00

44,0

39

OMI

301,4

91

347,

032

Productivity Level 2017/2018 (Unit)

PREVENTIONE�ciency in maximising resources especially in production process.

Separating general waste to recycling waste. Awareness posters on wastage and implementation of paperless

related activities policy within the company.

REDUCEReduce the amount of orders on papers for cost e�ciency.

Energy e�ciency and water management.Waste management.

RE-USE /RECYCLERecycle carton boxes, plastic bags and papers.

Re-use mechanical parts from machines.Maximise the usage of heat for reproduction

of product.

REPRODUCEMachining chips and scraps to be reprocessed as secondary ingots.

Water treatment.

DISPOSAL Scheduled waste

disposal to minimise all

kinds ofwaste.

Waste Management

Reuse : Closed circuit cooling water is recycled through pump house & cooling tower.

Recycle / Re-use : Hot exhaust air from Solution furnace (540°C) is channelled for re-used at Ageing oven (150°C)



Recycle : Waste Water Treatment Plant

Prevention : One of the waste management efficiency awareness campaign by HASB.

Prevention : Specific waste bin provided in Menara MBMR to ease the process of recycling and re-production.

Re-produce: Hot exhaust air is channelled to heating screw for chips & filtered before release.


SOCIAL

MBMR believes in the importance of social responsibilities and the need to balance between business profitability and humanity in a sustainable environment.

As part of our social responsibility, we practice equal opportunity, Occupational Health and Safety Administration (OSHA), and provide health and fitness programmes, staff benefits and development as well as community engagement.

Equal Opportunity MBMR stands by the principle of equal employment opportunities for all employees and to provide employees with a working environment that is free from discrimination and harassment. Our employment recruitment and staff advancement decisions are made based on professional judgement and business requirements without discrimination of gender, race, religion, nationality, social background, ethnic origin, physical, sexual orientation, marital status or any other status protected by the law. Our workplace diversity values everyone’s differences and we implement fair employment practices throughout the entire employer-employee relationship.

Occupational Health and Safety Administration (OSHA)Our Occupational Health and Safety Administration reports to the management team in MBMR on a monthly basis. To achieve our target of “Zero Injuries”, we continuously look for methods to improve the health and safety of our employees especially to those who may be affected by work activities. Incidents reported to the management during the OSHA monthly management meeting are investigated and analysed then followed by the proper countermeasures to ensure the incidents do not recur. The management team also reviews factors such as health and safety rules, Standard Operation Procedures (SOP) implementation, supervision and inspection processes, maintenance procedures for equipment/tools, hazard recognition and control methods.

The Division’s aftersales drew in a mixed performance for the year. Activities on safety awareness programmes are yearly conducted at subsidiary level to improve staff knowledge in safety procedures. Total reported accident cases decreased from 59 cases (2017) to 41 cases (2018). The reported accidents in 2018 decreased by 30% as compared to 2017. However, even the total number of accident reports have decreased, whereas workplace accidents have increased from 23 cases (2017) to 29 cases (2018). Traffic accident (9 cases) and health related (3 cases). Key changes are summarised as follows:-

1. Workplace accidents increased from 23 cases (2017) to 29 cases (2018).2. Traffic accidents decreased from 21 cases (2017) to 9 cases (2018).3. No fatal cases for year 2018.

KEYS TO SUSTAINABILITY - SOCIAL

2017 2018

AHSB

8

6

HASB

12

6

OMI

8

13

FAHB

10 11

DMSB

21

7

OSHA Reported Accidents 2017 / 2018

GROUP Q1 Q2 Q3 Q4 YTD 2018 YTD 2017

DMSB 0 4 1 2 7 21

FAHB 2 6 1 2 11 10

AHSB 1 2 1 2 6 8

HASB 1 0 1 2 6 12

OMI 2 3 2 6 13 8

TOTAL 6 15 6 14 41 59

Report on accidents 2018


Health & Fitness Programmes In MBMR, our people are our most valuable asset and we rely on our people to keep the business running. As part of our responsibility within the organisation, we always ensure our employees are healthy and productive.

We encourage our people to be involved in health and fitness programmes such as games and sports activities. Various activities were organised in 2018 such as bowling tournaments, paintball challenges, hiking and weekly badminton games.

The health and fitness programmes in MBMR have always been a win-win programme as it benefits both the employer and employees. By having healthy and productive people in the organisation, we benefit from greater productivity, reduce work related ill health and injuries at workplace and absenteeism at work. Through open participation by all levels in the organisation, the health and fitness programmes also strengthen employee relations, create a healthier work environment and last but not least, enhances the corporate image of the Group by having healthy, happy and productive employees.


Fire fighting training for staff

Motorcycle Safety Vest - Road safety training for staff who commute to workplace by motorcycle.

Federal Auto Recreation & Sports Club Carnival

Federal Auto Recreation & Sports Club Futsal


Staff Benefits and Development Our people are a vital part of our organisation and their performance, enthusiasm and trustworthiness are important not only in achieving our vision to be The Complete Automotive Group but are also significant in our long-term business sustainability.

As with most companies in Malaysia, our employees are eligible for employment benefits such as Employees Provident Fund (EPF), Social Security Organisation (SOCSO) and Employee Insurance System (EIS). In addition to the three main benefits, we also provide insurance coverage, annual leave, sick leave, marriage leave, exam leave, compassionate leave, overtime claim, travelling claim and unpaid leave with reasonable cause.

Recognising the importance of our people’s development and skill enhancement, we organise training programmes throughout the year for our employees. These programmes include skill development as well as training and enhancement programmes for various areas within the Group. These programmes aim to enhance and enrich our people’s capabilities and strengthen their leadership skills.

Annually, our people enjoy the annual dinner, annual luncheon, achievements award and staff gathering events. These events are organised to share the company’s appreciation for our people’s hard work and efforts.


Weekly Training Programme by Kelab Rekreasi Daihatsu

Federal Auto Wagen Team Building Programme

Staff Gathering Programme at Tandom Hill by Federal Auto


Community EngagementFor the past years, our commitment towards the community has been progressing. We may not have specific programmes or charity projects but we fulfil our dues to society by contributing fairly to society. Our role in the community is not limited to only giving goods and financial support but also in sharing our knowledge and in educating the community where we operate.

We organise community welfare visits to old folks homes, orphanages and homes of the poor, and hold safety awareness community programmes such as safety campaigns with the community, the Malaysian Institute of Road Safety Research (MIROS), the Malaysian Road Safety Department and the Police Traffic Department.

Our community engagement responsibility has become our obligation and we believe that the more we give, the more we are rewarded. Moving forward in the upcoming year, MBMR is planning to set up a community engagement team that will monitor the implementation and improvements of our corporate social responsibility programmes.


Kempen Berhemah Di Jalan raya with IPD Shah Alam Programme Khidmat Masyarakat by HASB

Fun activity with the community during Fun Motor Treasure Hunt


STAKEHOLDER ENGAGEMENT

Stakeholder EngagementIn 2018, we have witnessed an increase of interest in MBMR accompanied by the appreciation of its share price and trading volume of the shares. There are write ups, news, discussions and online articles highlighting MBMR’s development. However, we embrace our rapport with the public with a very open and transparent approach which has enabled us to clarify every situation fairly.

We have consistently adopted a transparent approach to our investor relations efforts and organised meetings with our investors including holding regular analyst briefings which are well attended by the investing community.

Our vision has been communicated to the media via various press interviews and press releases. The President & CEO of MBMR gives presentations of the Group’s performance and elaborates on the business future directions. We believe in maintaining good communication with the investment community to ensure better understanding of our performance and future strategy. We encourage long term investor coverage of MBMR and a consistent following of our progress.

Annual General Meeting (AGM) Our yearly meeting with the members or shareholders, where new Board Members are elected, company’s financial performance and activities are reported and future plans presented. Frequency : Once a year

Analyst Briefing Simultaneously with the release of our quarterly results to Bursa Malaysia, analyst briefings held with financial analysts, fund managers and research analysts to gain further insight and review of the presented results. The briefing will facilitate the analyst, fund managers and research analysts to produce their reports which are further published for the public or investors and media.

Frequency : Twice a year

Visit to Manufacturing PlantWe give opportunities to our investors to know us better and to allow them to personally see what they are investing in. This visit is usually participated by investment companies and analysts.

Frequency : Once a year

Events with AuthoritiesEvents organised together with the local authorities / regulator in sharing our knowledge withthe community. We have been updating our activities and following the right procedures to avoid any regulatory issues.

Frequency : At least once a year


STAKEHOLDER ENGAGEMENT

Centre Opening Event (Media Release) On special occasions, we never miss out the media for media coverage on events we organise. Every occasion such as centre opening, new product launch or any announcement and media release by MBMR will always be shared to the media. Frequency : Occasional

Visit to Associates with Analysts The purpose of the visit is to allow the investors to witness our associates’ strengths and their capabilities. This allows the investors to see part of MBMR’s investments. Frequency : Occasional

Website and Email Our website at www.mbmr.com.my, provides information on the company’s subsidiaries, partners, associates and updated news and events.

Our email, [email protected], eases investors’ and the community’s communication with MBMR and its subsidiary company.


Materiality MattersOutlining our material matters helps us to identify and prioritise the sustainability matters that relates most to our nature of business and the impact to our stakeholders.

Each material matters identified is significant to us as it affects our business in terms of development, cost and allows us to prioritise sustainability issues within the Group. This will assist in the continuity and progress of the Group’s sustainability report in the future.

The materiality issues emphasised in this report highlight the emerging issues and provides a fresh check on whether we are focusing on the right areas. From the assessment result, we will plan our next action to ensure that we are on the right track and embark upon the right issues.

Subsequently, we identify our stakeholders and material matters into categories to ease our assessment on the level of importance, influence and impact on the business. The result will be revealed in the materiality matrix according to the level of influence and what matters to the stakeholders. The Group’s sustainability team will assess the outcome of the matrix and deliberate with the business unit head on the next course of action.

INTERNALEmployess

ShareholdersDirectorsManagers

Business PartnersBusiness Associates

INTERNALInvestors

CustomersLocal Communities

Authority/Regulators Suppliers

MediaEmployee Union

STAKEHOLDERS

Stakeholders

SocialSafety & Health

Employee's RelationSta� Welfare

Corporate Social Responsibility Customer's Satisfaction

EnvironmentEnergy ConsumptionWater Conservation

Raw MaterialsWaste Management

EnvironmentGovernment / Regulators

Product QualityPolicy and Governance

Innovation

SUSTAINABILITYMATERIALMATTERS

Sustainability Material Matters

HIGH

0%

50%

100%

MEDIUM

CSR

EnergySta� Welfare Safety & Health

Water

Employee Relation

RawMaterials

CustomerSatisfaction

ProductQuality

Innovation

40% 80%

Government / RegulatorsPolicy & GovernanceWaste Management

LOW MEDIUM HIGH

LOW

Influ

ence

on

Stak

ehol

der

Asse

ssm

ents

and

Dec

ision

s

Significance of Group’s Economic, Environmental and Social Impacts

Materiality Matrix

MATERIALITY MATTERS

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