2018 UEM Edgenta Annual Report

GROUP STRATEGY - STAKEHOLDER ENGAGEMENT AND MATERIALITY Determining material matters is the starting point of how we formulate the various strategies which drive our business, to ensure we meet our stakeholders’ expectations over time. At UEM Edgenta, we define material matters as those that impact value creation for our business, our profits, people and the planet. We regularly engage with internal and external stakeholders through formal and informal platforms that provide us with an insight of their perspectives and expectations, particularly on issues that are material to us. Insights gained from these engagement sessions are then consolidated for deliberation at management level, after which the approved material topics will be presented to the Board together with action plans for review and approval. The following are our various stakeholder engagement platforms that we leverage on to receive feedback from our key stakeholders Stakeholder Engagement Platforms Material Topics Our Responses Clients & Partners - Quarterly Meetings - Bi-annually Client Satisfaction Surveys - Exhibitions, Roadshows (As andWhen) - Annual Partners Operations Dialogue - Quality - Safety - Service - Operational excellence through Continuous Improvement (“CI”) which includes the Innovation Garage and LEAN frameworks - Developed & adopted software and technology solutions to support operations - Continuous engagements on Health and Safety - Active participation in relevant industry associations Employees - Yearly Appraisals - Yearly Employee Engagement Survey - Internal Employee Events - Monthly MD/CEOMessages - Daily / Weekly Internal Communications / Announcements via Intranet / Instagram / Mobile App - Monthly Management Staff Reviews - Periodical Townhalls - Annual Management Dialogue - Safety Day - Employer-Employee Relations - Safety - Remuneration & Benefits - Training & Career Development - Corporate Updates - Conducted employees’ capability in CI which includes Innovation Garage to tackle high-impact problem statements and LEAN process improvements & training - Developed a HSSE Master Plan to optimise safety in our operations - Improved internal and external engagements on safety - Conducted teambuilding sessions to improve organisational agility, boost teamwork performance and foster innovation and creativity - Improved performance evaluation through Performance Management System, Pay for Performance and Performance Individual Plan - Ongoing training programmes for skill development and knowledge enhancement - BEAKONwas developed to enable employees amore effective way to report safety observations and further promote and enhance the HSSE culture among our people Regulators & Policy Makers - Quarterly Meetings - Conferences & Events - Compliance - Local & Government Agenda - Nation Building - Provided regular updates on compliance issues and operations - Maintained and updated ISO Certifications - Periodic engagement with Government and regulatory agencies on policy matters relating to our industry Supply Chain Partners - Vendor Development Programme - Periodic Vendor Performance Reviews, Planned Audits & Site Visits - Annual Partners Operations Dialogue & Integrity Day - Responsible Sourcing - Safety & Operational Excellence - Anti-Corruption - Vendor Development Programme to support Bumiputera entrepreneurs - Continuing engagements on Safety and periodic checks on compliance with regulations and relevant laws/codes - Whistle Blower Policy to address collusion and to promote integrity & good governance. Zero tolerance for corrupt practices Community - Bi-Monthly Events & Gatherings - Wider Community Contributions - Community Engagement - Continued and improved engagements with students under PINTAR Foundation –motivational camps, exampreparation etc. - Continued and expanded philanthropic activities during festive seasons Shareholders & Investors - Quarterly Meetings with the Board & Shareholders - Half-Yearly Analyst Briefings - Business Performance - Return on Investments - EES Risks & Impacts - Detailed and transparent updates through ongoing half-yearly analyst andmedia briefings - Improving Annual Report content and delivery to ensure transparent and accurate reporting of the Group’s performance and activities Financial Review Stakeholder Information AGM Information 25 Governance Review of Sustainability Activities