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15 Corporate Governance About Us SUSTAINABILITY REPORT Corporate Governance Financial Statements & Others About Us Performance Review ABOUT THIS REPORT The structure and content of this report draw upon guidance from Bursa Malaysia Securities Berhad’s Sustainability Reporting Framework. The economic, environmental and social (“EES”) performances in the following pages cover data which have been compiled internally for the 12-month period from 1 January 2019 to 31 December 2019. Where available and relevant, historical data of the preceding year has been included for comparison. Unless otherwise stated, all data is correct as at 31 December 2019. This report is intended to share our progress, development and improvements relating to sustainability. More specifically, in addition to managing sustainability governance, sustainable product development and environmental stewardship, we also advance our people and partner with the community for balanced development. This report covers Protasco Berhad, a public listed entity, and its subsidiaries. We have reported on seven segments of Protasco: Maintenance, Construction, Property Development, Engineering & Consultancy Services, Trading & Manufacturing, Education and Clean Energy. More information on Protasco’s segments and subsidiaries can be found in the Corporate Structure section on page 3 of the Annual Report. References to ‘Protasco’, ‘Protasco Group’, ‘the Company’, ‘the Group’, ‘the Organisation’ and ‘we’ refer to Protasco Berhad and/or its segments and subsidiaries. We are committed to this report and will seek external verification for future reports.

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Page 1: Financial Statements & Others 15 - protasco.com.my · www. decentrum.com.my care.com.my y 17 SUSTAINABILITY REPORT SUSTAINABILITY POLICY Protasco’s approach to sustainability is

15

CorporateGovernanceAbout Us Performance

Review

SUSTAINABILITY REPORT

CorporateGovernance

FinancialStatements &

OthersAbout Us Performance

Review

ABOUT THIS REPORT

The structure and content of this report draw upon guidance from Bursa Malaysia Securities Berhad’sSustainability Reporting Framework. The economic, environmental and social (“EES”) performances in thefollowing pages cover data which have been compiled internally for the 12-month period from 1 January 2019 to31 December 2019. Where available and relevant, historical data of the preceding year has been included forcomparison.

Unless otherwise stated, all data is correct as at 31 December 2019.

This report is intended to share our progress, developmentand improvements relating to sustainability. More specifically,in addition to managing sustainability governance,sustainable product development and environmentalstewardship, we also advance our people and partner withthe community for balanced development.

This report covers Protasco Berhad, a public listed entity, andits subsidiaries. We have reported on seven segments ofProtasco: Maintenance, Construction, Property Development,Engineering & Consultancy Services, Trading &Manufacturing, Education and Clean Energy.

More information on Protasco’s segments and subsidiariescan be found in the Corporate Structure section on page 3 ofthe Annual Report. References to ‘Protasco’, ‘ProtascoGroup’, ‘the Company’, ‘the Group’, ‘the Organisation’ and‘we’ refer to Protasco Berhad and/or its segments andsubsidiaries.

We are committed to this report and will seek externalverification for future reports.

Page 2: Financial Statements & Others 15 - protasco.com.my · www. decentrum.com.my care.com.my y 17 SUSTAINABILITY REPORT SUSTAINABILITY POLICY Protasco’s approach to sustainability is

16 PROTASCO BERHAD 200101012322 (548078-H) ANNUAL REPORT 2019

SUSTAINABILITY REPORT

SUSTAINABILITY GOVERNANCE

At Protasco Berhad, sustainability is a fundamental aspect of business. This requires effective governance, leadership andongoing focus on compliance procedures.

We endeavour to realise this through the formation of the Sustainability Steering Committee (“SSC”) which is represented byHeads of Divisions. The mandate of the SSC is to develop sustainable strategies and policies, and to guide decision makingefforts for the Group. The SSC also has a monitoring role to ensure Protasco meets both its compliance and sustainabledevelopment responsibilities.

SUSTAINABILITY STEERING COMMITTEE

MEMBERS DESIGNATION

Chairman Group Managing DirectorVice Chairman Managing Director

OTHER MEMBERS

Maintenance Chief Operating OfficerProperty & Construction Executive DirectorEngineering & Consultancy Services Chief Operating OfficerTrading & Manufacturing Executive DirectorEducation Vice ChancellorClean Energy Executive DirectorGroup Corporate Office Executive Director

The SSC is supported by the Sustainability Working Committee (“SWC”) and the Divisional Working Committe (“DWC”). Withrepresentatives from each Division, their roles include developing and driving the policies and strategies from the SSC withtime-bound plans. The DWC members are staff who are directly involved in the day-to-day operations of the division andempowered to drive sustainability.

SUSTAINABILITY WORKING COMMITTEE

MEMBERS

Chief Sustainability Officer

Document Controller Compliance Data Collection DepartmentData Analysis & Review

Report Writing Corporate Communications Department

Representatives From Each Division / Department

DIVISIONAL WORKING COMMITTEE

MEMBERS

Divisional Sustainability Officer

Coordinator

Document Controller

Data Person-In-Charge

Committee Members

\

Page 3: Financial Statements & Others 15 - protasco.com.my · www. decentrum.com.my care.com.my y 17 SUSTAINABILITY REPORT SUSTAINABILITY POLICY Protasco’s approach to sustainability is

STAKEHOLDER

RS ENGAGEMENT

• Intranet Portal• Newsletters• Appraisal Ses• Forums• Briefings / Me

SessionsDepartment S•

EMPLOYEES

01 0s

sions

etings

haring

0202002222

• Roadshows• Dialogues• Briefings / Meetin

AUTHORITIES REGOVERNMENT/ L

• Seminar for Schools &• Sponsorship Programmes• Community Programmes

COMMUNITY

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Education Institutions Seminar for Schools &

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Sites ngs

vice

ngs & etings

M di I t i Analysts• Briefing to Fund Managers • General Meetings

INVESTORS

d www.ikram.com.my www.protasco.com.my• Corporate Websites

/

• Negotiation Meetings Meetings• Review & Coordination

EXTERNAL PROVIDERS

• Investor Relations Website• Site Visits• News Releases• Media Interviews

www.iukl.edu.my

www.protascotrading.com.m www.decentrum.com.my www.roadcare.com.my

myy

17

SUSTAINABILITY REPORT

SUSTAINABILITY POLICY

Protasco’s approach to sustainability is underscored by its core values and is supported by the following sustainability policy.

“Protasco is a dynamic integrated engineering and infrastructure provider of diverse services. We are driven by engineeringexcellence to be an internationally acclaimed specialist solutions provider.

Protasco believes in building a better and sustainable future for our stakeholders by developing and contributing towards thepeople, communities, and nations that we operate in. We continually seek to achieve favourable economic, environmentaland social outcomes via our core business divisions. We also seek to ensure that strategic initiatives are systematically crafted,with due attention to our stakeholders, so as to ensure that sustainability remains an integral part of every business practice,process and project undertaken.”

SUSTAINABILITY ENGAGEMENT

We have identified our stakeholders that have an impact on our business or may be impacted by our business. This is toensure an open, transparent and long-lasting relationship with our stakeholders. Our stakeholders consist of a wide range ofgroups and we strive to deepen our bond with the stakeholders through methods that are tailored specifically to each of ourstakeholder group, as summarised below:

CorporateGovernance

FinancialStatements &

OthersAbout Us Performance

Review

Page 4: Financial Statements & Others 15 - protasco.com.my · www. decentrum.com.my care.com.my y 17 SUSTAINABILITY REPORT SUSTAINABILITY POLICY Protasco’s approach to sustainability is

18 PROTASCO BERHAD 200101012322 (548078-H) ANNUAL REPORT 2019

SUSTAINABILITY REPORT

ALIGNMENT WITH THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (SDG)

On 1 January 2016, the 17 SDGs of the 2030 Agenda for Sustainable Development - adopted by world leaders in September2015 at a historic UN Summit - officially came into force. These 17 Goals seek to abolish extreme poverty, to reduce inequalityand injustice and to solve the global climate crisis.

Protasco advocates the comprehensive approach of the SDGs. With infrastructure, specifically road maintenance as our mainbusiness contributor, our service and innovations enable us to contribute to the Goals.

ECONOMIC AND BUSINESS PERFORMANCE

2019 was another tough year for Protasco and many hard decisions were required to be made in order for the Group toachieve economic sustainability. The Group embarked on a right sizing exercise in the third quarter of 2018 and this continuedwell throughout 2019. This reduced a substantial number of overheads as well as operating expenditure.

Our engineering and consultancy services segment, through Kumpulan Ikram Sdn Bhd (“Ikram”) signed a strategicpartnership agreement with Geolab Ikram Sdn Bhd (“Geolab”) to enable Geolab to acquire the assets of the regional officesof Ikram and jointly bid for jobs leveraging on the ‘Ikram’ brand.

This exercise will enable Ikram to save approximately RM7.6 million per annum in operating expenditure whilst enabling Ikramto generate income through consultancy and royalty.

Demand for our engineering and consultancy services is dependent on the overall economic environment as a slowingeconomy would affect any capital expansion and thus our services.

At Ikram, a cost optimisation programme has been initiated. This programme involved merging several business units, hiving of non-profitable ones and optimising resources.

In FY2018, as part of its rationalisation and cost optimisation exercise, the education division under Infrastructure UniversityKuala Lumpur (“IUKL”) had merged several faculties while the Faculty of Architecture & Build Environment was maintained.

SUSTAINING ECONOMIC VALUE

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CorporateGovernance

FinancialStatements &

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• The Faculty of Engineering & Technology Infrastructure, Faculty of Creative Media & Innovative Technology and Facultyof Applied Science & Foundation Studies were merged and renamed Faculty of Engineering, Sciences and Technology.

• The Faculty of Business & Accounting, Faculty of Creative Media & Innovative Technology and Faculty of Arts,Communication & Education were merged and renamed Faculty of Business, Information and Human Sciences.

CORPORATE GOVERNANCE

Effective governance and risk management policy and procedure, together with Protasco’s core values are vital for achievinglong-term success. Compliance Department works closely with our Secretarial in taking the necessary steps to ensurecompliance to the Malaysian Code of Corporate Governance (“MCGC”) 2017 and adherence to related best practices.

The Board attaches great importance to corporate governance. The Board believes that for the Group to maintain its success,remain competitive and sustainable in the long term, a high standard of governance is indispensable. In this regard, Protascocomplies with all legislation and regulations on corporate governance, which are detailed in the section of Overview Statementon Corporate Governance of this Annual Report on page 48.

BUSINESS ETHICS

Protasco conducts its business with integrity and is fully supported by our code of conduct. We practice a culture of opennessand honesty guided by our Whistleblowing Policy. In 2019, no case of misconduct had been reported by employees usingthe whistleblowing channel. In order to avoid conflict of interest, upon acceptance of employment, employees are requiredto validate standing instructions on business ethics. We recognise the importance of safeguarding personal data and complywith the Personal Data Protection Act (“PDPA”) 2010.

IUKL will continue to bemarketED as a universityof choice for Engineeringand Architecturecourses. IUKL hopes to continue to beprofitable despite theglobal circumstances.

IUKL had also phased out certainprogrammes that were notprofitable. The rationalisation andcost optimisation exercise willenable IUKL to save approximatelyRM1.4 million per annum in staffcosts.

Recognising the intense competitionfrom other private tertiaryinstitutions, IUKL realised that theuniversity had to be managed in alean and manageable level. Therationalisation and cost optimisationexercise, which started in FY2018,will enable IUKL to break-even atlower student population.

Page 6: Financial Statements & Others 15 - protasco.com.my · www. decentrum.com.my care.com.my y 17 SUSTAINABILITY REPORT SUSTAINABILITY POLICY Protasco’s approach to sustainability is

SUSTAINABILITY REPORT

20 PROTASCO BERHAD 200101012322 (548078-H) ANNUAL REPORT 2019

Reducing waste is one of Protasco’s on-going initiatives to minimise our environmental impact.

REDUCING ENVIROMENT FOOTPRINTProtasco recognises the importance of protecting the environment and we are dedicated to monitoring our environmentalfootprint whilst minimising the environmental impact arising from our business operations.

WASTE

MATERIAL WASTE MANAGEMENT

Our construction division continues to ensure all project sites adhere tothe Environmental Regulations (Scheduled Waste) 2005 and ISO14001:2015 - Environmental Management System. With the certification,the division is able to practise its environmental responsibilities in asystematic manner that contributes to environmental sustainability. Thisincludes the proper management of all its material waste which generallyconsists of construction waste (i.e. cement bags, crates, etc.) anddomestic waste (i.e. paper, boxes, food waste and plastics). The wasteis segregated according to its type and disposed of by appointedlicensed contractors.

RECYCLING INITIATIVES

The Reduce, Reuse and Recycle (“3R”) principles arepracticed in Protasco and its subsidiaries and wherepossible, we eliminate or reduce the use of disposableresources, promote recycling and encourage the reuse ofmaterials.

Protasco’s maintenance division is a pioneer in Malaysia inusing the Cold In-Place Recycling (“CIPR”), an advanced andenvironmental friendly technique in treating distressed roadpavements. CIPR provides a more cost-effective alternativeto pavement rehabilitation for both partial and totalconstruction options. The technique sees the recyclingmachine scarify the existing pavement layers (to a maximumdepth of 500mm) then add either cement or bituminousmaterial or both as stabilising additives before relaying it backon the same pavement area in a single process.

• Cost effective where operations use less manpower andmachinery, and a shorter construction time. Savesaround 20% of the investment in repair costs.

• Versatile where pavements are now easy to constructthrough one pass operation, production is highly mobile,and causes less traffic disruption.

• Ecologically friendly where existing material can bereused, causes less air pollution and conserves naturalresources (quarry product).

In the offices across the Group, the 3R principle has been apractice with initiatives which include:

• Paperless environment for all meetings• Duplex printing to avoid waste• Use of recycled paper and reduce colour printing of

internal documents• All communications are done via email and other online

methods• General and recycling waste bins are provided at

designated areas

Page 7: Financial Statements & Others 15 - protasco.com.my · www. decentrum.com.my care.com.my y 17 SUSTAINABILITY REPORT SUSTAINABILITY POLICY Protasco’s approach to sustainability is

WASTE AWARENESS CAMPAIGN IN DE CENTRUM CITY

On 14 September 2019, in an effort to increase awarenesson the importance of proper waste disposal, Protasco’seducation division under Infrastructure University KualaLumpur (“IUKL”) had tied up with Trash Heroes Putrajaya, anNGO that focuses on educating the masses on wastemanagement and awareness. The event gathered more than50 volunteers to work together collecting trash around the DeCentrum City, a 100-acre area where Protasco’s main officeis located and at the end of the session, the trash collectedwas audited. The results of the trash audit were; Cigarettebutts- 2558, Plastic Grass Trimmer- 387, Plastic Bottle-154,Straw- 66, Cigarette Box- 22, Aluminum Can-15, Plastic Cup-14, Tetrapax-13, Paper Cup-13, Glass Bottle-11, PlasticSpoon and Fork- 5, and Plastic Container-1. The total weightof general waste was 16.15kg and recyclable items was7.55kg. The grand weight total of waste collected was23.7kg.

For an area where the surroundings are maintained bycleaners daily, the amount of trash that was still around albeitas small and seemingly insignificant as a cigarette buttreflects the mentality of the public at large. The activity aimedat educating participants that it is every individual’sresponsibility in taking care of shared spaces, and that wasteis everyone’s problem.

SUSTAINABILITY REPORT

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Recycled Rubber: LGM’s Environmental-friendly Paint

Paint made out of rubber is an innovative new product developed by the Malaysian Rubber Institute (“LGM”). As a companythat has always prioritised sustainability, Protasco was honoured to have been selected as one of the pioneers to have itscorporate block building coated with the environment-friendly paint.

The paint, developed using recycled rubber material, has avibrant colour and lasts longer without any tendency to fade.It also contains material that is resistant to moulds and harshweather.

On 13 July 2019, Protasco’s building was featured in aspecial episode of ‘Agrotek’, a TV programme thatshowcases innovative products made out of agriculturalmaterials.

Page 8: Financial Statements & Others 15 - protasco.com.my · www. decentrum.com.my care.com.my y 17 SUSTAINABILITY REPORT SUSTAINABILITY POLICY Protasco’s approach to sustainability is

F

EC

FY2019

ENERGY SAVINGSCORPORATE BLOCK

Tsa

R1

F3

A

Temperature’ which is set at ‘Optimum are encouraged to be

Reduction12,697.2 kWh

FY2019355,995.2 kWh

AIR CONDITIONERS

b

224˚C 26˚Cbetween

to

SUSTAINABILITY REPORT

22 PROTASCO BERHAD 200101012322 (548078-H) ANNUAL REPORT 2019

THE ‘UNPLUG’ CAMPAIGN

At the beginning of 2019, a campaign to educate and create awarenessamong all staff of Protasco on the impact they can make to reduce phantomenergy usage was carried out and everyone was reminded to pull out the plugfor their desktop computers from the main socket daily before they leave forhome. Besides weekly email reminders, employees were sometimes surprisedwith either a ‘reward’ for not forgetting to unplug or ‘reprimanded’ with awarning note when they forget. The reward and warning notes were left on theirwork desks for them to find usually after coming back to the office after aweekend.

The campaign was a success, as at the end of the year 2019, a fair reductionin the total electricity consumption at Protasco Berhad’s corporate block in De Centrum City was noted. The amount consumed was recorded at 355,995.2kWh as compared to year 2018 at 368,692.4 kWh, a reduction of 12,697.2 kWh. To understand the significance of the amount, a 100 watt lightbulb which uses 0.1 kilowatts each hour, can be lit up for 10 hours to consume1 kWh of energy. The savings could light more than 12,600 light bulbs of 100 watt through the night. This is highly significant as many people around theglobe live in darkness due to the lack of access to electricity.

ENERGY SAVING POLICY

Energy is an important resource and a major expense for all divisions. We prioritise energy efficiency improvements that counteract rising energycosts and strengthen our competitiveness.

Introducing best business practices help us use energy efficiently, whichmaximises cost savings. Reducing our consumption leads to lower CO2emissions. This approach conserves the environment and provides sustainablebusiness management which helps secure our long-term position.

Energy efficiency is defined as using less energy to provide the same service.At Protasco’s corporate office, lights are turned off during lunch hour. At thesame time, air conditioners are encouraged to be set at the ‘optimumtemperature’ of between 24° to 26° Celsius. The offices should be cool enoughat this temperature for everyone to be comfortable without the need forsweaters. With every degree lowered, the air conditioner will use a significantamount of energy to keep the room cooler than necessary.

Other initiatives to reduce carbon footprint include reducing travelling wherepossible and encouraging carpooling.

The use of significant amount of energy can create negative environmental impact in the form of greenhouse gases (“GHGs”)emissions, whether directly or indirectly, which contributes to global warming.

ENERGY

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SUSTAINABILITY REPORT

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ALTERNATIVE ENERGY

IUKL’s main academic block (Block 11) participated in a green energy initiative by tapping aportion of its electricity used from a solar system installed on its roof. The solar system was installedin September 2017 with a total capacity of 185.5kWp.

The system generated 251.601 MWh in the year 2019 which resulted in an electricity saving ofRM 91,834.36. This green venture is in-line with the government’s initiative of reaching a target of20% renewable energy sources by year 2030.

The main components of the solar system namely the solar modules and inverters are listed amongthe Bloomberg tier 1 brands in the world. The solar modules have a 25 year performance warrantywhich ensures system longevity and long-term electricity savings.

BEYOND ENERGY CONSUMPTION

The Malaysian government’s pro-solar policies came into full effect in 2019 under the purview of the Ministry of Energy,Science, Technology, Environment and Climate Change (MESTECC). The policies enable an energy consumer (be itresidential, commercial or industrial) to enjoy cheaper energy with solar power either via self-investments aided by governmentincentives or free with solar leasing companies which invested in solar systems to provide cheaper energy via a powerpurchase agreement.

Protasco’s clean energy division under the brand of i2 Energy entered into multiple strategic alliances with reputable localand international solar leasing companies providing them high value support in engineering, procurement and construction(“EPC”) expertise. We have participated and secured multiple tenders alongside our partners. Many of these are beingimplemented in 2020 and beyond.

We look forward to an exciting 2020 as the construction of our Solar Power Plant begins. We expect the plant to be connectedto the grid supplying power in fourth quarter 2020.

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24 PROTASCO BERHAD 200101012322 (548078-H) ANNUAL REPORT 2019

Water is one of the most important resources on earth. Although there is a vast amount of water available, and this neverchanges in volume, there is only a certain amount of usable water available at a certain point in time. The demand for wateris outweighing supply and this is only going to get worse. By not wasting what’s available, we can conserve water.

WATER CONSERVATION

At Protasco’s corporate office, good water usage habits are encouraged and reminded at all usage points such as the pantriesand toilets. Educational posters to remind users to turn off the tap while soaping hands or while cleaning their mugs are madevisible to instill good water habits. All pipes and water hoses are checked for leakage frequently to curb any wastage.

RIVER OF LIFE PROGRAMME

Ikram Engineering (“IKRAM”), Protasco's EngineeringDivision, under Ikram, is proud to be involved with theRiver of Life programme, an initiative that aims totransform area near the Klang and Gombak Rivers intovibrant and livable water fronts with high economicvalue.

IKRAM’s involvement covers repair works and ensuresthe stability of the riverbank structure acrossapproximately 10.7 km of the Klang and Gombak Rivers,stretching from Dang Wangi to Mid Valley where micropile walls and new slabs are being built.

FLOOD MANAGEMENT

Water-related disasters are among the most economically and socially destructive of all natural disasters. Floods, droughtsand storms have affected countless people and caused much damage.

Protasco believes that stewardship of flood management is crucial as it involves human safety and can lead to the loss oflives. Our maintenance division under Roadcare Sdn Bhd (“Roadcare”) has been supporting and partnering Jabatan KerjaRaya Malaysia (“JKR”) with funding, manpower and other necessities such as the usage of vehicles and trucks to transportand assist during flood. Support also includes an Emergency Response Team (“ERT”) for areas where Roadcare has itspresence.

In December 2019, Roadcare collaborated with JKR as first responders to flood victims in Setiu and Besut in Terengganu.Activities include cleaning up of school compounds and classes as well as contribution of food and other daily provisions tothe victims.

WATER

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SAFETY TRAINING PROGRAMME

OCCURRENCE : Yearly

INTERNAL AUDIT

OCCURRENCE : Every 6 Months

TOOLBOX BRIEFING

OCCURRENCE : Daily

SITE HOUSEKEEPING

OCCURRENCE : Weekly

SAFETY WORKPLACE INSPECTION

OCCURRENCE : Every day on site

SITE CAMPAIGN

OCCURRENCE : Yearly

PROPER TRAFFIC MANAGEMENT PLAN

OCCURRENCE : Reviewed every safety meeting

WORKPLACE AND MACHINERY INSPECTION

OCCURRENCE : Start of every project

SUSTAINABILITY REPORT

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At Protasco, we pay great attention to the welfare of our employees and local communities. We aim to develop and train ouremployees while continually and actively nurture local communities. In line with United Nations Sustainable DevelopmentGoals (UNSDG), we strive to end all forms of discrimination against women, protect labour rights, secure working environmentfor employees and to provide affordable and sustainable development.

OCCUPATIONAL HEALTH AND SAFETY

Our Health, Safety and Environment (“HSE”) management creates a healthierand safer working environment for all of our employees. At each division, anHSE committee is identified to meet the unique requirement that eachdistinctive industry demands.

For Protasco’s maintenance division under Roadcare, the HSE team adoptsguidelines by the Department of Occupational Safety and Health Malaysia(“DOSH”) to suit each road maintenance site project.

The maintenance division’s HSE committee will meet every quarter, wherethey will revisit implementation of safe work practices as approved by theProject Safety Plan, to ensure no incident occurs at project sites involvingemployees and public at large.

The following safety control and measures are also implemented to prevent any incidence from happening:

It is our duty to ensure that anyincidence that occurs is reported toDOSH as required by the OccupationalSafety and Health Act 1994. For theyear 2019, we are happy to note thatthere was no major accident reportedfrom any road maintenance projectsites across Malaysia.

SOCIAL : CULTIVATING A HEALTHY AND SAFE WORKPLACE

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SUSTAINABILITY REPORT

26 PROTASCO BERHAD 200101012322 (548078-H) ANNUAL REPORT 2019

DIVERSITY AND INCLUSIVITY

Protasco is committed to creating a workplace that appreciates diversity and inclusivity. We promote honesty, trust, mutualrespect and care for our employees. Our employee breakdown is divided into the following divisions: Construction, Maintenance,Education, Clean Energy, Engineering & Consultancy Services, Trading & Manufacturing, Corporate Office and Property.

• Employee Distribution

We believe the future of our industry is in the hands of the next generation, and weare committed to groom our employees to become the leaders of tomorrow. As shown in Figure 1(a), our employee distribution across different age groupsshows that the majority of our employees are within the 30-50 age bracket. We seekto attract the best talents for our Group. Whilst we retain the experienced hires, wealso seek to nurture young talents in preparing for the next generation of leaders.

%

%

%

BY AGE (%)BREAKDOWN

EMPLOYEE

12

29

59 FIGURE 1(a)

Above 5030-50

Below 30

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FEMALE WO

MALE WORK

2626

332626

88818

130

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537

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186

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ACORP ENATEPORA NGGYNENERG

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PERRTPRO ADINGGTRAMA

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& TIO CEDU TENAMAINONUCATU NTT CANCE TRUCTIONCONSTT

SUSTAINABILITY REPORT

27

EMPLOYEE BENEFITS

Our employees are our most valued asset. As such, we continue to invest in them and safeguard their interests.We offer competitive package that helps reward and retain capable talents. We ensure our employees aredeveloped by:

• Motivating employees to perform through performance-based rewards• Providing employees with comprehensive benefits and competitive remuneration• Promoting inclusivity and diversity to ensure fairness• Encouraging employees to upskill themselves through internal and external training programmes• Providing a conducive and safe work environment for employees• Engaging employees to improve morale • Providing an avenue for professional and personal growth

GENDER BALANCE AND CELEBRATING WOMEN WORKFORCE

At Protasco, we offer opportunities to all regardless of their gender. As shown in the graph below, we are proud to be genderbalanced in companies or divisions where the nature of business does not require high numbers of site workers.

Every March, Protasco fetes our female employees on International Women’s Day by donning purple for a fun event. In 2019,the management announced an acknowledgement for pregnant women working at the De Centrum City with ‘pink parking’ -a specially reserved parking spot as a way to express the company’s appreciation to all female employees. This initiativeshows that women are empowered at Protasco and that the organisation is committed to all employees.

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28 PROTASCO BERHAD 200101012322 (548078-H) ANNUAL REPORT 2019

NEW CLOCK-IN TIME INTRODUCED

On 1 July 2019, Protasco had announced a small incentivefor all employees by adjusting the clock-in time from 8.15amto 8.30am. This adjustment gave the staff an additional 15 minutes to clock in, in the morning.

The decision to amend the working hours is a progressiveaction by the management to weigh working hours againsteffective deliveries. This is also a non-monetary reward thatProtasco can give the staff.

As technology and work systems improve, staff can still be effective even if they are not in the office. Happy employees are12% more productive (according to a 2015 study by the University of Warwick).

Another non-monetary reward that was introduced in 2019 was the casual Friday dress code which was welcomed particularlyby the younger employees.

MANAGING THE CORONAVIRUS DISEASE 2019 (“COVID-19”) OUTBREAK

When the Covid-19 outbreak started in December 2019, no one expected it to be a pandemic. At Protasco, we positioned hand sanitisers at high traffic locations from the onset and advisedall employees to frequently wash their hands as preventive measures. The same had beenadvised to guests of the organisation.

As the disease progressed, Protasco keeps our staff updated with developments and sendstimely reminders on ways to stay safe. Our premises are sanitised frequently and all staff aremonitored for symptoms prior to entering the office areas.

Work travel is kept to a minimum, and was allowed only if it was highly necessary. Protasco workshard to balance running the business as efficiently as possible without compromising employees’safety.

At the time of this report, the number of Malaysians affected by Covid-19 is worrying. Thegovernment has taken serious measures to curb the uptrend by calling out for a MovementControl Order. As a responsible company, Protasco has enabled all staff to work from home andall meetings or communications are done digitally - an excellent opportunity to encourage a nopaper culture. The non-travel requirement also reduces carbon footprint as well as petrolconsumption.

However, as the wellbeing of the global community continues to be compromised by thepandemic, Protasco wishes for everyone’s safety above all else.

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Social : Community Engagement

We continue to engage with local communities where we have presence with various programmes. The table below illustratesour engagement with local communities in 2019.

Division / Company Programme Stakeholder

Education / IUKL Majlis Agihan Bantuan Zakat Low-Income Protasco Staff

Education / IUKL Charitable Activity with Residents of Community Pusat Jagaan Kanak-kanak Miskin Nor Aini

Maintenance / Roadcare ‘Coffee Break’ Road Safety Campaign in JKR Partnership with JKR Road Users

Corporate Office / Festive Celebration for Elderly Occupants CommunityProtasco Berhad of Mesra Home with Volunteers of Protasco Internal Stakeholders

Maintenance / Presentation of 15 Cows for Majlis Qurban CommunityRoadcare & DAL HCM Perdana Daerah Lawas, Sarawak KKR

Maintenance / Roadcare Qurban Contribution to Kelantan and Community Pahang State Offices Local State Legislature

Maintenance / Qurban Contribution to Dun Rhu Bendang CommunityPermint-Granite Local State Legislature Education / IUKL Qurban Gotong Royong at Masjid Ikram Internal Community Surrounding Community

CorporateGovernance

FinancialStatements &

OthersAbout Us Performance

Review