Risk & Opportunities Governance Outlook Material Matters Stakeholder Engagement SC HC IC MC NC FC STRENGTHENING CORE COMPETENCIES STRATEGIC BUSINESS GROWTH Operational Environment Read more on pages 18 - 25 Read more on pages 14 - 15 Read more on pages 77 - 111 Read more on pages 34 - 35 Read more on pages 32 - 33 Read more on pages 26 - 27 Value Creation Business Model Value Creation Business Model CAPITAL INPUTS OUTCOMES OUTPUTS BUSINESS PILLARS UNSDGs OUR VISION To be the preferred global agro-based enterprise. • 1,896,580 GJ energy consumed • 3,042,140 m3 water consumed • 4,844 pieces of additional solar panels installed • Total of 3,000 mangrove seedlings planted to-date • An inclusive and diverse workforce of over 14,600 employees across 4 business pillars • Nurture and upskill employees through training and development programmes • Internal human rights due diligence audits completed for 3 business units • Achieved ISO45001 certification in QL Poultry Farm • More than 30 operating entities • Operating in 3 countries • New second central kitchen • Innovative renewable energy and environmental solutions • Open communication channels and dialogues between QL and stakeholders, ensuring a mutually beneficial relationship • Distributed RM835,662 of net profit to support the community at large • Quality and halal certified products • Best practices and 10 food safety and quality certifications • QL Poultry Centre of Excellence • Total equity: RM2.71 billion • Total borrowings: RM1.36 billion Produced 1.20 billion standard protein servings1 (FY2022: 1.20 billion) Produced 19.50 million meals for Malaysians2 (FY2022: 16.67 million) 99% score of “Fair to Excellent” for QL Eggs and QL Mushroom brand in Consumer Satisfaction Survey Improved to 3-star ESG Grading Band per FTSE Russell ESG Ratings Methodology Improved to “BBB” MSCI ESG rating (FY2022: “BB”) Natural Manufactured Intellectual Human Social Financial FC SC HC IC MC NC QL exercises responsible consumption to ensure sustainable long-term value creation • 841,905.85 GJ Renewable Energy Generated (FY2022: 320,742.54 GJ)* • 25,153.67 tCO2e GHG Emissions Avoided (FY2022: 26,234.23 tCO2e)* • 17.2% GHG Emission Intensity Reduction (FY2022: 4.2% increase)* • 569.89 m3/RM Mil Revenue of Water Withdrawal Intensity (4.3% reduction; FY2022: 595.49 m3/RM Mil Revenue)* • 6,754 m3 Rainwater Harvested (FY2022: 4,033 m3)* • Recycled over 191,600 tonnes of non-hazardous waste recycled (FY2022: 175,500 tonnes)** • Diverted 95.3% of non-hazardous waste from landfills (FY2022: 97.5%)* • Composted 93.7% of chicken manure to organic fertiliser (FY2022: 95.3%)* • Planted 2,000 mangrove seedlings with a 99% survival rate (FY2022: 1,000) Sustainably Enhancing Performance Regional Replication Downstream Integration Strengthening Value Chain Integrating Technology Empowering Talents Enhance Branding & Product Innovation QL develops, implements and utilises automation, technology and best practices to continuously produce safe, quality and nourishing sources of protein • RM6.24 billion revenue (FY2022: RM5.24 billion) • 2.40 billion eggs (FY2022: 2.45 billion) • 153,000 metric tonnes of fish (FY2022: 137,000 metric tonnes**) • 19.82 million broilers (FY2022: 18.72 million) • Over 1,000 quality halal certified products (FY2022: Over 700) QL’s business growth, brand and trusted reputation are attributable to its deep pool of knowledge, experience, and robust systems • Over 10 accepted and trusted brands (FY2022: 10 brands) • Holds Halal and international certifications • Export to more than 10 countries (FY2022: 10 countries) • Developed poultry academy framework An established personal and career development path complements a safe conducive working environment to nurture an inclusive and competent workforce • RM571.12 million paid in salaries and wages (FY2022: RM465.41 million) • 219,491 upskilling and training hours (FY2022: 136,008) • 373 employees underwent Leaders Enhancement and Development (LEAD) Programme (FY2022: 354) • Introduced differentiated learning approaches to 62 participants of the Accelerated Learning Process Programme • Established and rolled out Safety Leadership Training Programme to all people and line managers with 165 participants completing the programme • Commenced internal human rights due diligence audits QL builds and maintains its relationship with stakeholders across operational locations playing its part in socio-economic development via its Corporate Philanthropy • Enhanced the livelihoods of 924 fishermen through the FFAS (FY2022: 914) • Impacted over 11,900 lives via over RM835,600 invested in Corporate Philanthropy initiatives (FY2022: 13,200 lives; RM980,000) • 8,102 locals employed at our operation sites (FY2022: 10,800) • 3,433 suppliers signed QL’s Suppliers and Business Associates Code of Business Ethics • 188 internships for workplace exposure provided • 53 more Orang Asli trained for employability (FY2022: 90) • 207 kindergarten children from low-income and indigenous families that attend government schools in rural areas provided with daily protein requirements for six months Produce uninterrupted long-term shareholder value by optimising financial resources including equity and debt • Resilient business performance, PATAMI: RM346.82 million (FY2022: RM217.35 million) • Total proposed dividend payment: RM170.36 million (FY2022: RM85.18 million) • Cumulative shareholder return since listing in year 2000: 12,700% ROI (FY2022: 10,900%) • Total finance cost: RM64.48 million (FY2022: RM51.72 million) Marine Products Manufacturing (MPM) Integrated Livestock Farming (ILF) Palm Oil And Clean Energy (POCE) Convenience Store Chain (CVS) OUR MISSION CORE VALUES CORE VALUES We create nourishing products from agro resources, leading to benefit for all parties. Integrity | Innovative Win-Win | Teamwork Note: * Information pertains to subsidiaries reported within the Sustainability Statement ** Restated with revised calculation 1 Based on average protein serving of 26g (recommended average daily protein intake by USDA Dietary Guidelines), computed using production volume for MPM and ILF businesses. 2 Based on average 2,000 calories per meal per day (recommended daily calories intake by the Ministry of Health Malaysia), computed using CVS meal production. 017 016 QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2023 SEC. PG. PG. MANAGEMENT DISCUSSION AND ANALYSIS 4
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