Chemical Company of Malaysia Berhad Sustainability Report 2018

Our Commitment To Sustainable Economic Practices To prosper as a market leader in the region by contributing towards economic enhancement through innovative development, creation of local employment opportunities and implementing responsible business practices. CCM’s continuous commitment to sustainability transcends corporate responsibility as we also enhance stakeholder value through making solid contributions to the local economy. ANNUAL ECONOMIC PERFORMANCE [201-1] We believe in adopting a long-standing approach to economic sustainability and this is evident in our good business performance. As of 31 December 2018, CCM recorded a revenue of RM395.9 million, a 6.8% increase over the preceding year’s revenue. In RM million 2017 2018 % change Economic value generated Revenue for the financial year 370.7 395.9 + 6.8 As a proponent of circular economy, we strive to create value in our business by recognising the importance of expending our annual income in a productive and sustainable manner towards the growth of our Company, local government and community. In 2018, CCM retained 36.1% of its economic value for reinvestment into the business as compared to 27.4% in 2017. The remaining economic value distributed for our operational costs, employee wages and benefits, payments to investors and government and investments to the community. ELEVATING OPERATIONAL EXCELLENCE CCM has always been a strong advocate of an Operational Excellence (OE) culture. As of 31 December 2018, a total of 11 OE projects with total savings of RM7.88 million was recorded by the Polymers business, while 12 OE projects with a total saving of RM14.95 million was recorded by the Chemical business. All in all, these two divisions garnered total savings amounting to RM22.83 million for 2018, while a total of RM67.58 million in savings has been garnered from all OE projects since 2012. INNOVATIVE DEVELOPMENT [102-2] With the end goal of reducing costs and waste, sustainability-driven innovation does much to improve business operations and make operational processes more efficient. At CCM, we continue to embed innovative practices into our organisation’s business operations and these are bringing about a host of tangible benefits. Economic Value Retained Economic Value Distributed RM 395.9 million 36.1% RM 47.5 million RM 348.4 million 63.9% Economic Value Generated 28 SUSTAINABILITY REPORT 2018