2013 CSR Report NEW Small 6

UMW HOLDINGS BERHADCORPORATE SOCIAL RESPONSIBILITY REPORT 2012/13

CONTENT

ABOUT THIS REPORT

PGCEO'S MESSAGE

BEYOND BOUNDARIES

UMW STRUCTURE

AWARDS RECEIVED

EDUCATION

ENVIRONMENT

COMMUNITY DEVELOPMENT

Page

ABOUT THIS REPORT

This report is divided into 3 main sections – Education, Environment and Community Development. These are the 3 main causes that we support through a variety of Corporate Social Responsibility activities. In supporting these causes, we take into account the needs of all our stakeholders - in the Marketplace, the Workplace and the Community.

This report is a supplement to UMW Group’s 2012 Annual Report and is an update to our previous CSR reports.

This report reviews UMW’s key Corporate Responsibility initiatives from the period of January 2012 to December 2012. We have also included news from the first half of 2013, where data was available. The report covers the entire UMW Group, and those subsidiaries that are included in Group consoli-dated financial statements. Focus is given to the Automotive Division’s environmental performance, as it is the Group’s largest profit contributor and accounts for a significant portion of our physical assets and workforce.

In putting together this report, we have endeavoured to provide information that is reliable, clear and relevant.

We encourage readers to tell us your views on our approach to CSR and to make suggestions for the development of our CSR programmes.

Comments and suggestions can be directed to:

Zalina Zainal AbidinUMW Corporation Sdn BhdCorporate Communications DivisionJalan Utas 15/740915 Shah AlamSelangor Darul EhsanMalaysia

Tel: +60 3 5163 5046Fax: +60 3 5512 8208Email: [email protected]

1CORPORATE SOCIAL RESPONSIBILITY REPORT 2012/2013

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PGCEO’S MESSAGE

Dear Stakeholders,

In terms of financial performance, the year 2012 was a big one for the UMW Group – not only did we record our 12th record performance since becoming a public-listed company, but for the first time in our 95-year history, Group PBT rose to hit the RM 2 billion mark!

Of course, they say that money alone can’t buy happiness. What our consistent financial success does is put the UMW Group in a strong position to give back to our stakeholders - in so many ways. Our shareholders are able to enjoy satisfying returns on their investment; our facilities can be further upgraded to better serve customers; and our hardworking employees can enjoy better remuneration, rewards and benefits. Financial success means that we are also able to continu-ously support the causes that we are passionate about – Education, the Environment and Community Development. This is what gives our success its feel-good factor – the ability to create true value above pure financial returns. As an international conglomerate with strong, Malaysian roots, UMW remains committed to enhancing the Nation’s social and economic development, and boosting its competitiveness in the global arena. Investing in education and training programmes is a big part of that commitment. In June 2012, we signed an MoU with PETRONAS Technical Training Sdn Bhd to establish Malaysia’s first, national Oil & Gas drilling academy of its kind. With this academy,

we hope to not only fuel the human capital needs of our rapidly growing Oil & Gas Division, but further address the shortage of skilled Malaysian drilling personnel and support the national objective of transforming Malaysia into an Oil & Gas learning hub for the Asia Pacific region.

We understand, at the same time, the need to balance financial and economic growth with our responsibility - as citizens of this planet - to protect our natural environment. As such in 2012, we continued to enhance environmental management measures at our automotive manufacturing plant and succeeded in reducing energy usage, water consumption, as well as scheduled waste and VOC trend. This is despite production volume increasing by 32% over the previous year. Speaking of balance, I am proud to say that UMW employees too seem adept at balancing their duties at work, with their duties as members of the community. Since June 2009, our employee- volunteers have collectively contributed over 11,700 hours to various social, environmental and charitable activities. The year 2012 saw the UMW Community Champions work on several projects with the disabled community. And on such projects, we found that we had as much to receive as we had to give. Our friends from the disabled community taught us many valuable lessons on overcoming obstacles; physical and mental barriers. They helped us gain an even deeper understanding of what it means to go Beyond Boundaries – which is of course, the UMW Group’s rallying call.

Our journey Beyond Boundaries is far from over. We have only just begun. Guided by our core values of being Honourable, Unshakeable, Vibrant and Pioneering, it is truly the UMW Group’s hope to continue scaling greater heights and create greater value for all of our stakeholders.

Datuk Syed Hisham Syed WazirPresident & Group CEO

CORPORATE SOCIAL RESPONSIBILITY REPORT 2012/2013

BEYOND BOUNDARIES®

IS BOTH A JOURNEY, AND A GOAL.

BEYOND BOUNDARIES®

IS OUR COMMITMENT TO REACHING GREATER HEIGHTS OF SUCCESS. THE ROAD MAY BE LONG, THE CLIMB MAY BE STEEP BUT WITH ANHONOURABLE,VIBRANT,UNSHAKEABLE AND PIONEERING SPIRIT; WE ARE CONFIDENT OF COMING OUT ON TOP.

“

”



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AWARDS RECEIVEDYEAR COMPANY’S NAME AWARD RECEIVED AWARD PROVIDER


2013 UMW Holdings Berhad • The Edge-BRC Highest Profit Growth Company Award(Consumer Products)

The Edge Billion Ringgit Club (BRC)

AWARDS RECEIVEDYEAR COMPANY’S NAME AWARD RECEIVED AWARD PROVIDER

UMW Corporation Sdn Bhd

UMW Toyota Motor Sdn Bhd

Lubetech Sdn Bhd

KYB-UMW Malaysia Sdn Bhd

Assembly Services Sdn Bhd

UMW Equipment & Engineering Pte. Ltd., SingaporeUMW Standard Drilling Sdn. Bhd.

UMW Industries (1985) Sdn Bhd

Automotive Industries Sdn Bhd

• Best Contractor Performance

• KLMCC 2012 MBA International Excellence Award

Hybrids• 1st place - Lexus CT200h (NEW) (3.8L/100km)• 2nd place - Toyota Prius 3rd Generation (3.9L/100km)Luxury Family Cars• 1st place - Toyota Altis 1.8L 7-Speed (5.5L/100km) winner since 2009Luxury SUV’s• 1st place - Lexus RX Hybrid (6.3L/100km)Compact MPV’s• 3rd place - Toyota Avanza 1.5L (7.1L/100km)Premium SUV’s• 3rd place - Toyota Fortuner 2.7L Diesel (NEW) (8.3L/100km)

• Toyota Altis - Best Passenger Car (Compact)• Toyota Hilux 3.0G - Best pick-up truck

• Gold (Automotive)

• Toyota Hilux - Pick-up truck of the year• Toyota Vios - Value for money COTY (1.3L and above)

• ISO 14001:2004

• MODENAS Best Vendor Multi-National Category

• Oustanding Delivery Performance 2011

• Proton 2011 Certificate of Compliance (Grade A Manufacturing Process Audit Criteria)

• Hong Leong Yamaha Top Vendor Award 2012

• KYB Global Kaizen Award 2011 Silver Prize

• Initial Quality Survey (IQS) #1 - HILUX

• 2011 TMHI Sales Award• 2011 TMHI Parts Award

• Safety Excellence – 1 Year without Lost Time Incident (LTI)

• Toyota CS Excellent Award 2011• Platinum Club Membership Status in the TMHI Premier Club Recognition Programme

• Tennant SEAT Export Distributor of the Year for 2011

• Best Cost Improvement Award

• Supplier Zero Defect Programme, Silver Award

• Best Performance Award 2011

Petronas Carigali Sdn Bhd

Kuala Lumpur Malay Chamber of Commerce (KLMCC)

Asian Auto Fuel Efficiency Awards 2011

Shell V-Power Autoworld Car of the Year Awards 2011

Putra Brand Awards

Frost & SullivanMalaysian Excellence Awards

Bureau Veritas Certification, Malaysia

MODENAS

Toyota Supplier’s Club

Proton

Hong Leong Yamaha Motor Sdn Bhd

KYB Corporation Japan

J.D. Power Asia Pacific

Toyota Material Handling International

International Association of Drilling Contractors (IADC)

Toyota Material Handling International

Tennant Company

Toyota Boshoku UMW Sdn Bhd

Proton Berhad

Total Logistic Services (3rd party Logistic for PERODUA)

2012


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EDUCATION - Overview

Our Commitment• To secure a better future for all by investing in education today

Our Philosophy & Approach• Foster a culture of life-long learning• Encourage continuous pursuit of excellence • Put theories into practice and translate positive thoughts into positive actions

Our Programmes & Activities

Pre-School • Toyota Traffic Tots

Primary School• UMW-PINTAR Programme

Secondary School• UMW-PMR Clinic• Environmental Education (refer to Environment section of this report)

Undergraduates• UMW Scholarships

Fresh Graduates• SL1M-UMW: Graduate Enhancement Programme• Management Trainee Programme

Employees, Customers & Beyond• Executive Diploma in General Management• UMW-INSTEP Drilling Academy• Health, Safety & Environment training for employees and customers (refer to Annual Report)


EDUCATION


Toyota Traffic TotsWhat is Toyota Traffic Tots? What is the motivation behind this programme?

Toyota Traffic Tots is an extension of UMW Toyota Motor’s larger Road Safety Programme and was initiated to educate pre-school children on how to become good pedestrians and good passengers. Over the years, we hope that these children will grow to also become safe, courteous and consci-entious drivers. As an automotive company, UMW Toyota Motor realises that with the rising number of vehicles on the road, safety has become a critical issue. We are fully supportive of the government’s efforts in reducing the number of road accidents and fatalities. Thus, the Toyota Traffic Tots Programme is working closely with the Ministry of Transport and Smart Reader Worldwide Sdn. Bhd. to reach preschool children throughout Malaysia.

Who were the participants of Toyota Traffic Tots 2012?

A total of 300 children from 10 Smart Reader Kids centres were directly involved in the pilot year of the Toyota Traffic Tots Programme.

How does the Toyota Traffic Tots Pro-gramme work?

The Toyota Traffic Tots module contains 10 lessons that are taught for 1 hour each month, from March to November. Teachers at participating preschools are provided with a teaching kit by UMW Toyota Motor.

What does the future hold for Toyota Traffic Tots?

For 2013, we plan to bring the programme to 20 Smart Reader Kids centres, followed by another 20 in 2014.

10 CORPORATE SOCIAL RESPONSIBILITY REPORT 2012/2013

EDUCATION

UMW-PINTAR ProgrammeWhat is the PINTAR Programme?PINTAR is short for Promoting Intelligence, Nurturing Talent and Advocating Responsibility. The programme is a collaborative effort by Government-linked companies (GLCs) to assist children from low-income families achieve improvement in their academic performance as well as in character building. We believe in the importance of education as a way out for these children from their current socio-economic condition. Participating companies “adopt” primary or secondary schools from across Malaysia and work directly with the affected children from these schools.

Please elaborate on UMW’s resource commitment and involvement in the PINTAR Programme. UMW has been involved in the PINTAR Programme since 2007. Each primary school – a mixture of National and Vernacular - is “adopted” for a period of 3 years.

We allocate a budget of approximately RM300,000 each year to support our adopted schools. The funds are used:

• To conduct motivational workshops for students, as well as teachers and parents • To conduct tuition classes for core subjects• To purchase additional educational materials and equipment required by schools• To organise educational visits to universities and other sites of interest (eg: Pusat Sains Negara, Kidzania, various museums)• To reward students for academic excellence. The top students - in Standards 4, 5 and 6 - of our adopted schools are rewarded with RM300 each.

Please list the schools adopted by UMW in 2012, under the PINTAR Programme.1. SK Pasir Panjang (Port Dickson, Negeri Sembilan)2. SK Sungai Selisek (Kuala Kubu Baru, Selangor)3. SJK (C) Perkampungan Berapit (Seberang Prai, Pulau Pinang)4. SK Sitiawan (Manjung, Perak)5. SK (A) Kampung Busut Baru (Banting, Selangor)6. SK (A) Bukit Cheding (Banting, Selangor)7. SJK (T) Ladang Sungai Choh (Rawang, Selangor)

How did UMW’s adopted schools perform in the 2012 UPSR examinations?We’re proud to say that 4 of our adopted schools showed an improvement in their academic performance:

From 2007 – 2012, the UMW PINTAR Programme has benefitted a total of 11 Primary Schools and close to 12,000 students

2011 2012

SK Pasir Panjang

SK Sungai Selisek

SK Bukit Cheding (A)

SK Sitiawan

61.7

60.9

21.4

86.5

84.7

62.5

33.3

92.8

23.0

1.6

11.9

6.3

SchoolSchool UPSR

Results(% Pass)

%increase

EDUCATION


…. And congratulations to

SK Bukit Cheding (A) for winning the PINTAR Battlebot Challenge 2012 (National Level) !The PINTAR Battlebot Challenge requires students to use their science, mathematics and technology know-how to build a vehicle / robotic structure using LEGO pieces, which will go on to “battle” structures built by other teams. The most creative and strongest robot is named the winner. UMW is so proud of our adopted school, SK Bukit Cheding (A) for beating more than 300 teams to emerge as National Champions of the PINTAR Battlebot Challenge 2012. The SK Bukit Cheding (A) team was presented with an additional reward of RM 250 each from UMW for their winning effort.

This is the second time a UMW-adopted school has won the Battlebot Challenge. The 2011 Chal-lenge was won by SK Sitiawan. Well done, team!


EDUCATION

UMW PMR CLINICWhat is the UMW PMR Clinic?

The UMW PMR Clinic is a new CSR programme introduced in 2012. The objective of the intensive, week-long clinic is to transform academically average students into excellent students for the PMR examination.

The clinic focused on 3 core subjects – English, Science and Mathematics, with UMW bearing the full cost of the programme.

The facilitators for Science and Mathematics were high-performing school teachers specially selected by Pejabat Pelajaran Daerah Petaling Perdana (PPED). For English, we worked closely with the New Straits Times.

The 2012 UMW PMR Clinic was hosted at SMK Seksyen 16, Shah Alam.

Who were the beneficiaries of the 2012 UMW PMR Clinic and how were they selected?

We chose to focus on students from schools in Shah Alam as this is where our headquarters, as well as a significant number of our operations are located. We sought the assistance of Pejabat Pelajaran Daerah Petaling Perdana to identify the appropriate schools. They were:

I. SMK Seksyen 16 II. SMK Seksyen 27III. SMK Seksyen 24IV. SMK Seksyen 24(2)V. SMK Taman Sri MudaVI. SMK SubangVII. SMK Subang BestariVIII. SMK Seksyen 11IX. SMK Seksyen 19X. SMK Seksyen 18

A total of 100 students from the above schools attended the 2012 UMW PMR Clinic, along with 4 children of UMW employees.

EDUCATION


Tell us a little about the history of the UMW Annual Scholarship Awards.The UMW Annual Scholarship Awards was first incepted in 2005, as a way of supporting high-achieving undergraduates from lower-income families.

To-date, UMW has invested nearly RM 1 million in the university education of nearly 150 scholars.

UMW Annual Scholarship Awards

Who does UMW award scholar-ships to?Our scholars are regarded as potential future talents to strengthen UMW’s leadership pipeline. As such, aside from evaluating family income and financial need, we look for candidates with quali-ties and interests that best reflect the Group’s core values, ambitions and business.

Some of the general criteria that scholarship candidates should meet include:

• possessing an excellent academic and extra-curricular track record• enrolled at a Malaysian university • pursuing a degree in engineering, accounting/ finance or business administration

21 UMW Scholarships were awarded to deserving undergraduates in 2012


EDUCATION

SL1M-UMW: Graduate Enhancement Programme (GEP)

What is this programme about? What are the objectives?

The SL1M-UMW: Graduate Enhancement Programme or GEP, provides an opportunity for young, unemployed/ underemployed Malaysian university graduates to gain valuable on-the-job experience and exposure at UMW, while enhancing their soft skills and employability.

The programme is carried out under the Skim Latihan 1 Malaysia (SL1M) umbrella - a collaborative effort between the Malaysian Government and Government-Linked Companies (GLCs) to reduce unemployment rates.

What is the framework of SL1M: UMW (GEP)? How does it work and what are the modules?

SL1M:UMW (GEP) is a 2 + 6 months programme and we have aligned the framework/modules with the guidelines provided by the SL1M secretariat and tackle areas that fresh graduates are lacking in.The first 2 months consist of classroom-based soft-skills and functional skills training. Lessons include:

• Interpersonal Skills & Rapport Building • Creative & Analytical Thinking, Decision Making• Sales, Marketing & Negotiation Skills • Work Ethics, Professional Grooming & Etiquette• Communication and Presentation Styles• Organisational Adaptability

This is followed by 6 months of on-the-job training, where SL1M:UMW (GEP) trainees can begin to apply everything they have learnt in the classroom, on real work situations, and translate that into positive results.

All trainees receive a monthly allowance from UMW to cover basic living expenses throughout their time in the programme.

How many people have benefitted from SL1M : UMW (GEP)? What is the success rate?

The first batch of SL1M:UMW (GEP) trainees – 40 people - came on board in September 2011 and completed their on-the-job training with us in May 2012.

75% of Batch 1 trainees secured permanent jobs during / upon completion of the programme, with 17 of them being absorbed as permanent employees of UMW.

The second batch of trainees – consisting of 39 individuals – underwent the programme from May 2012 to January 2013. Upon completion, 14 were absorbed as permanent employees of UMW while another 12 secured permanent employment in other organisations.

What basic requirements do applicants have to meet? How is the selection process?

Short-listed applicants undergo a rigorous 2 - Level interview process - first, with a panel of interviewers from UMW Group Human Resource, followed by a panel of interviewers from the Company, Division or Department most suited to the applicant’s qualifica-tions and abilities. We want to ensure, as best as we can, that opportunities are given to graduates who genuinely want to improve themselves, who are open to new experiences, and are willing to give their 110% to the programme.

In order to be eligible for the programme, applicants must firstly,• possess a degree or equivalent in the field of Engineering/ Business Administration / Finance/ Marketing /International Business /Economics; with a minimum 2.5 CGPA• be below 27 years of age

• be unemployed, or underemployed, for a minimum of 6 months

• be willing to be attached to various subsidiaries within the UMW Group in Shah Alam/ Kuala Lumpur.

EDUCATION


UMW’s Management Trainee Programme or MTP is seen as an integral part of the Group’s talent and leadership pipeline, aimed at providing a solid foundation, for dynamic, fresh graduates to acquire business and behavioral skills of high performing professionals. In fact, many of the leaders in UMW today are alumni of the Group’s Management Trainee programme

How are Management Trainees (MTs) selected?As MTs are placed on the career fast-track, we look for candidates that we feel are able to keep up with the pace. MTs should possess:• a Bachelor’s Degree with a CGPA of 3.3 or higher – to show that they are keen on learning• an excellent track record in extra-curricular activities – to show that they are willing to go the extra mile.

Candidates’ communication skills are put to the test in 2 rounds of interviews with us. In previous years, MTP candidates were interviewed by Group Human Resource personnel and their prospective line managers only.

Starting from 2012, Top Management (Executive Directors) themselves conduct the final interview, before a candidate is offered a place in the programme.

How is the MTP structured?MTP is structured in two phases. In the first phase, we provide trainees with 2 months of intensive soft-skills training.

MTs are also sent for a challenging, 2-week Corporate Warrior outdoor course at the Outward Bound School in Lumut, Perak. The course is aimed at building physical and mental strength.

The 2nd phase involves a special project that MTs must develop together, over the course of a year and they are expected to present the final result to Senior Management.

In tandem with the programme, MTs will have daily opportunities to apply all that they have learnt in a wide variety of real work situations, befitting that of an executive. Each MT is also assigned an Executive Director as their personal career coach.

UMW Management Trainee Programme (MTP)

From 2008 to 2012, a total of 63 young men and women have NOT ONLY graduated from our Management Train-ee Programme, BUT have also continued to develop and progress to higher positions within the UMW Group.


EDUCATION

Executive Diploma in General Management (EDGM)

What is the Executive Diploma in General Management?

The EDGM programme, first launched in 2007, is a fully-sponsored diploma programme offered to talented UMW supervisors and executives who may not have had the chance to receive a tertiary education previously, or those who possess qualifications that are not in line with their current job scope.

The part-time diploma programme takes 9 – 12 months to complete and is conducted by SEGi University College. The programme has 8 modules and they are:

1. Human Resource Management2. Principle of Marketing3. Financial Management4. Negotiations & Decision Making5. International Business6. Business Management7. Business Research8. Special Graduation Project

The Diploma is jointly awarded by SEGi University College & UMW.

Is there a maximum age for enrolment in the EDGM programme?

We believe in fostering a culture of life -long learning so there isn’t an age -limit per se. Employees from 28 to 55 years old have enrolled and graduated from the programme. Participants must have completed a minimum of 1 year of service with UMW, and be willing to stay on with us for 3 more.

How many employees have graduated, and benefitted from the EDGM programme?

From 2007 – June 2013, we have proudly seen 85 employees graduate with their Executive Diploma in General Management.

Another 25 is set to earn their scrolls in November 2013.

How much has UMW invested in the EDGM programme to date?

From 2007 – June 2013, we have invested approxi-mately RM 1.5 million in the EDGM programme. This amount includes employees’ tuition fees, “residential study package” for participants based outside the Klang Valley and other educational materials/ learning needs.

EDUCATION


On 28 June 2012, UMW Oil & Gas Corporation signed a Memorandum of Understanding with PETRONAS’ training arm, PETRONAS Technical Training Sdn. Bhd. (PTTSB) / Institut Teknologi Petroleum PETRONAS (INSTEP) to establish Malaysia’s first national Oil & Gas drilling academy of its kind.

What is the objective of the UIDA?• To address shortage of skilled Malaysian drillers and drilling personnel, as the majority of local positions are currently filled by expatriates• To fill the competency gap between local and international drillers• To support UMW Oil & Gas’ and PETRONAS human capital and workforce development needs • To support the national objective of transforming Malaysia into an Oil & Gas learning hub for the Asia Pacific region.

Who can enroll in the UMW-INSTEP Drilling Academy? The UMW-INSTEP Drilling Academy will be opened to UMW employees, PETRONAS employees, other drilling contractors and the public, at large.

there, they will climb the learning ladder until they graduate as certified, professional, Drillers, or perhaps, as Toolpushers in the future.

Trainees can expect a programme curriculum that is holistic, practical-based and aligned to that of the Offshore Petroleum Industry Training Organisation (OPITO), which has for over 30 years, been the global Oil & Gas industry’s focal point for skills, learning and workforce development. The Academy will also aim to be recognised, and for its courses to be certified, by the International Association of Drilling Contractors (IADC) and the International Well Control Forum (IWCF).

What type of courses will UIDA offer?There will be 3 types of programmes on offer:I. a full-time, structured Professional Driller training programmeII. short specialised drilling coursesIII. certification programmes

Those enrolled in the full-time, structured training programme will begin at the most basic level of the drilling industry - which is the Floorman - and from

What are the respective contributions of UMW and INSTEP to UIDA? UMW will be bringing our experience and expertise in drilling operations to the table. We will also further provide state-of-the art simulators, as well as an actual rig so that trainees will have ample opportunity to apply knowledge acquired in the classroom in real life.

The academy will leverage on INSTEP’s vast wealth of experience in providing technical training for current and future employees of the PETRONAS Group of Companies, as well as other large, multi-national Oil & Gas players operating in the country. Trainees will also have the use of INSTEP’s campus facilities in Terengganu, Malaysia.

When will UIDA be up and running?Short courses are already being offered under this UMW and PTTSB training partnership. The first – an IADC-accredited short course on Surface Blow Out Preventer (BOP) – was conducted in late 2012/ early 2013. The course was specifically developed for crews on jack-up rigs, and this is highly relevant to UMW Oil & Gas as it is currently the owner and operator of 3 such rigs. The course saw the participation of 14 UMW employees and they were joined by 5 participants from PETRO-NAS Carigali and 1 from INSTEP. We expect the UMW-INSTEP Drilling Academy to be fully operational by 2014.

UMW-INSTEP Driling Academy (UIDA)


ENVIRONMENT - OVERVIEW

Our Commitment• To balance the need for financial & economic growth with our responsibility to protect our natural environment

Our Philosophy & Approach• Awareness, education & knowledge- sharing as the first step • Regular monitoring and tracking of the direct impact of our operations• Continuously enhance energy efficiency and promote better management of resources• Adopt international environmental standards

Our Environmental Education ProgrammesConsidering that Man best learns from his own experience, our environmental educa-tion programmes take learning beyond the classroom walls and are packed full of hands-on activities.

• Toyota Eco Youth• UMW River Hunt• UMW Eco Camp• Annual UMW Mangrove Tree Planting in Sg. Pelek• Gotong Royong at Bukit Melawati

Minimising Environmental impact of Our Operations at Assembly Services Sdn Bhd (ASSB) – 2012 Highlights Despite an increase in production activities and manpower in 2012, ASSB managed to:• Reduce scheduled waste by 92%• Reduce water consumption by 24.4%• Reduce energy consumption by 4.5% (all compared to 2011 results)

ENVIRONMENT


What is Toyota Eco Youth and how did it all begin?

The Toyota Eco Youth (TEY) is an environmental education programme and a competition. It challenges schoolchildren to solve environmental issues within their community, using Toyota’s 8-Step Problem Solving Methodology.

(Toyota’s simple but strict 8-step Problem Solving Methodology has long been used in its business operations globally as the standard procedure for tackling problems.)

TEY was conceived in 2001 by UMW Toyota Motor in collaboration with the Ministry of Education. TEY rocketed to full national level in 2002, with 16 secondary schools from each state in Malaysia (including Federal Territories) signed on.

Past TEY projects were focused on environmental efforts within school grounds. Starting from 2011, TEY efforts have grown to involve the entire local community surrounding participating schools.

How does the Toyota Eco Youth Programme work?TEY runs for 8-months each year and involves the following activities:

Toyota Eco Youth (TEY)

Over the years, UMW Toyota Motor has spent close to RM 5 million on the programme. A total of 162 schools have participated in the programme to date.

Participating teams are introduced to Toyota’s 8-Step Problem Solving

Methodology which will help them assess existing environmental issues within

their community.

Teams then submit their findings/ project proposal to the organising committee.

Committee visits school to verify findings and guide the teams on moving forward. Each team is granted RM2000 by UMW

Toyota Motor to carry out their projects.

Teams are expected to provide regular project updates / progress report

through a blog. At the 4 month mark of project implementation, on-site judging

takes place.

Finally a grand convention is held where all teams gather to present and exhibit their best work. The winners are then

revealed and rewarded.


Executive Diploma in General Management (EDGM)

ENVIRONMENT

Who were the participants of Toyota Eco Youth 2012?

The following schools were involved in Toyota Eco Youth 2012:

1. SMK Air Putih (Pahang)2. SMK Lajau (Labuan)3. SBPI Gopeng (Perak)4. SMK St Mary (Kuala Lumpur)5. SMK Machang (Kelantan)6. SMK Tun Abang Haji Openg (Sarawak)7. SMK Pendamaran Jaya (Selangor)8. SMK Tengku Intan Zaharah (Terengganu)9. SMK Seri Tanjong (Melaka)10. SMK Arshad (Sabah)11. SMK Putrajaya Presint 18 (I) (Putrajaya)12. SMK Yan (Kedah)13. SMK Tinggi Kluang (Johor)14. SMK Tinggi Bukit Mertajam (Pulau Pinang)15. SMK Dato’ Sheikh Ahmad (Perlis)16. SMK Taman Semarak Nilai (N. Sembilan)

Who were the winners of Toyota Eco Youth 2012 and what did they receive from UMW Toyota Motor?

For Overall Performance• First Prize : RM 7000 (recipient: SMK Tinggi Bukit Mertajam)• Second Prize: RM 5000 (recipient: SMK Tun Abang Haji Openg)• Third Prize: RM 3000 (recipient: SMK Lajau)• Fourth Prize: RM 2000 (recipient: SMK Air Putih)• Fifth Prize: RM 1000 (recipient: SMK Taman Semarak Nilai)

Special Categories / Novelty Prizes• For Best Website: RM 1000 (recipient: SMK Tinggi Bukit Mertajam)• For Best Presentation: RM 1000 (recipient: SMK Arshad)• For Best Exhibition: RM 1000 (recipient: SMK Tinggi Kluang)

ENVIRONMENT


The annual UMW Mangrove Tree Planting programme was held in Sg. Pelek, Sepang in December 2012. The Community Champions planted 1000 mangrove tree saplings in the area, in addition to the 1500 trees previously planted in 2011.

The programme was held in collaboration with Jabatan Perhutanan Negeri Selangor and the Malaysian Nature Society (MNS).

In June, the UMW Community Champions together with Majlis Daerah Kuala Selangor (MDKS) conducted a “gotong-royong” (litter cleanup) at Bukit Melawati - a site of historical significance as well a key tourist attraction in the state of Selangor. Family members of our Community Champions were also invited to join the day of good deeds and good fun. About 40kg of litter was collected during the programme.

UMW Mangrove Tree Planting at Sg. Pelek, Sepang

“Gotong-Royong” (Litter Cleanup) at Bukit Melawati

2500 Mangrove Trees planted by UMW in Sg. Pelek, Sepang (2011 & 2012)


ENVIRONMENT

The UMW River Hunt Programme was held in February at Commonwealth Forest Park, Selangor. The children of Rumah Amal Siraman Kasih were invited to participate in the programme where they were taught water quality-testing methods and the importance of caring for our rivers.

Helping to facilitate the programme were the UMW Community Champions, representatives from Jabatan Hutan Negeri Selangor and Lembaga Urus Air Selangor (LUAS).

UMW River Hunt

The UMW Eco Camp was held for 3 Days and 2 Nights at Forest Research Institute Malaysia (FRIM) in November 2012 as an opportunity for underprivileged children to learn about forest ecology in a fun, outdoor environment. A total of 34 children from two shelter homes in the Klang Valley participated in the programme.

The UMW Community Champions and Nature Education Centre (NEC) acted as facilitators.

UMW Eco Camp

ENVIRONMENT


What measures were taken in 2012 to decrease energy usage? We continued to make improvements / enhance-ments to energy saving measures taken the year before. This includes conducting regular energy audits to eliminate non-essential lighting, improv-ing compressed air efficiency as well as optimising production processes and equipment.

What actions led to a 24% decrease in water consumption?In our 2011 CSR report, recycling treated water from the Industrial Effluent Treatment System (IETS) for production was mentioned as one of our future environmental management plans. We successfully implemented this measure in 2012.

Assembly Services Sdn Bhd (ASSB) manufactures/ assembles selected Toyota and Hino vehicles. In 2012, production volume at the plant increased by 32% over the previous year. We made every effort however, to ensure that the plant’s overall impact on the environment did not increase along with it.

What is the reason behind the increase in General Waste at the plant?The increase in General Waste is proportionate to the increase in manpower at the plant in 2012. We will endeavour to reduce this figure in the future through continuous promotion of the 3R principle – Reduce, Reuse, Recycle – to all employees.

Data shows that there was a significant decrease in Scheduled Waste from 2011 to 2012. How was this achieved?We introduced recycling of certain scheduled wastes such as paint and Industrial Effluent Treatment System (IETS) sludge.

2012 Environmental Performance – Assembly Services Sdn Bhd (ASSB)

Environmental Performance Data – At a Glance

Energy Usage

VOC Trend

Scheduled Waste

General Waste

Water Usage

GJ/unit

g/m2

kg/unit

kg/unit

m3/unit

14.74

52.70

2.26

5.54

6.30

14.08

52.68

0.18

6.53

4.76

- 4.48

- 0.04

- 92.04

+ 17.87

- 24.44

Item Unit /Year

% of Decrease

(-) /Increase

(+)

2011 2012

COMMUNITY DEVELOPMENT - OVERVIEW

Our Commitment• To share our success with the communities where we operate by contributing our skills and resources to worthwhile causes and those in need, regardless of race, religion, colour or creed.

Our Philosophy & Approach• Encourage active involvement from all employees and engage the local community• Balance requests for one-off donations and immediate relief with integrated CSR programmes that provide sustainable, long-term benefits• Areas of public policy / interests where a broad consensus has been identified

Partnership with MERCY Malaysia• In its 4th consecutive year• UMW has provided over RM 2 million in funding for community health programmes and disaster relief• One of the first corporations to establish an Employee Payroll Giving Scheme to benefit MERCY Malaysia (effective 2012)

21st Toyota Classics featuring the Vienna Chamber Orchestra• Proceeds from ticket sales and corporate donations amounted to RM 320,328 Beneficiaries were:• Persatuan Pemulihan Orang-Orang Cacat Selangor & Wilayah Persekutuan• Malaysia-Japan International Institute of Technology

Small grants, Corporate Dona-tions and Sponsorship Scheme • A total of RM 305,803 contributed to 52 worthwhile causes/ deserving organisations in 2012



Who or what is a UMW Community Champion?“UMW Community Champions” refer to both the Group’s employee-volunteer programme, as well as the individuals that help keep it moving forward. The programme has been ongoing since its launch in June 2009. All UMW employees are encouraged to become “Community Champions” by contribut-ing their time and skills to any of the Group’s CSR activities.

How does UMW support its Community Champions?UMW fully bears the cost of transportation, meals and any accommodation, special training or equipment required. Our dedicated CSR unit is in charge of volunteer coordination and is on hand to assist with making necessary arrangements and to answer any enquiries.

We take all necessary precautions to ensure the safety of our Community Champions. As employees, they are covered by the UMW Group’s insurance coverage.

For 2013 and beyond, UMW will be looking into more non-monetary ways with which we can recognise and reward the Community Champions for their service.

Why an employee-volunteer programme?UMW believes that when it comes to worthwhile causes, financial donations can provide a spark of hope but it is our personal involvement that keeps the fire burning.

The UMW Community Champions initiative effectively increases our employees’ awareness on environmental and social issues; it empowers them to be the change they want to see in this world and further adds to their professional and personal development.

UMW Community Champions

11,721 hours spent in service to the community(from June 2009 to December 2012)No number large enough to reflect the value of human connections made and friendships built.



List of Activities 2012In 2012, the UMW Community Champions were involved in the following:

Environmental Programmes (refer to Environment section for details)

• River Hunt Programme at Commonwealth Forest Park, Selangor with the children of Rumah Amal Siraman Kasih• “Gotong-Royong” (clean-up) Bukit Melawati, Kuala Selangor• UMW Eco Camp at Forest Research Institute Malaysia• Mangrove Tree Planting at Sg. Pelek, Sepang

UMW-MERCY Malaysia Outreach Clinic Missions at:

• Sungai Genaan, Sebauh, Bintulu, Sarawak• Kampung Inakaak, Sabah• Kampung Sonsogon Magandai, Kota Marudu, Sabah• Kampung Alutok, Tenom, Sabah• Lusong Laku, Kudat, Sarawak• Kampung Imusan, Tongod, Sabah

Programmes with the Disabled Community

• UMW Cares for the Blind Charity Bazaar, in collaboration with the Malaysian Association for the Blind• “Gotong-Royong” at Rita Handicapped and Disabled Welfare Home• “Mini Karnival Sukan Rakyat” (Traditional Games Mini Carnival) with the children of Rumah Pertubuhan Kanak-Kanak Istimewa Cemerlang, Rawang

Festive Season Celebration with Underprivileged Children and the Elderly

• Chinese New Year Celebration and Movie Outing with Good Samaritan Home, Klang• “Majlis Buka Puasa” with Pusat Jagaan Baitus Sakinah Wal Mahabbah, Sepang• Deepavali Celebration and educational outing to KidZania with Agathians Shelter Home, Petaling Jaya• Christmas Celebration and “gotong-royong” at Grace Home for the Elderly

UMW Community Champions



What does MERCY Malaysia do and why did UMW choose to partner with the organisation?MERCY Malaysia is a non-profit organisation focused on providing medical relief, sustainable health related development and disaster risk reduction activities for both crisis and non-crisis situations.

MERCY Malaysia crosses geographical borders and overcomes physical barriers to help communities in need – regardless of race, religion or creed. This is certainly in line with UMW’s own rallying call of going Beyond Boundaries .

What role does UMW play in this CSR Partnership?Since the start of the formal partnership in 2009, UMW has been providing MERCY Malaysia with a yearly financial grant to carry out community health projects (primarily “outreach clinics”) and disaster risk reduction activities for vulnerable communities in Malaysia.

The financial grant provided by UMW in 2012 was worth RM 407,215.00, bringing UMW’s total contribution to MERCY Malaysia to over RM 2 million to date.

UMW has also been providing MERCY Malaysia with additional manpower support, through the UMW Community Champions.

In 2012, a new dimension was added to the partnership through the launch of the UMW Employee Payroll Giving Scheme. The scheme provides UMW employees with the opportunity to

contribute to MERCY Malaysia on a monthly basis, via automatic payroll deduction. UMW is one of the first corporations to establish such a scheme to benefit the non-profit organisation.

What is an Outreach Clinic? What are the services provided?There are communities in Malaysia that may not have regular access to basic medical services due to socio-economic factors or remote geographic locations. With the Outreach Clinic, we bring these services to where they are instead. All services are provided to our beneficiaries free of charge. The services include:

• Basic medical screening and treatment (blood pressure, cholesterol, etc.)• Dental care• Eye screening and distribution of reading glasses• Pap Smear tests (for women)• Health and Hygiene talks, as well as the distribution of Hygiene Kits• Disaster Risk Reduction (including Fire Risk Reduction) talks and demonstration

Other than outreach clinics, what other activities are the financial grant provided by UMW used for?A portion of the financial grant will be used to develop MERCY Malaysia’s Disaster Risk Reduction Information, Educational and Communication (IEC) material for people with disabilities. These materials are developed and produced in association with the following organisations:

• Malaysian Association for the Blind• Malaysian Federation of the Deaf• POCAM (the Society of the Orthopedically Handicapped, Malaysia)

CSR Partnership with MERCY Malaysia

More than RM 2 millionin funding for community health projects (since 2009)

More than 3000 beneficiariesof Outreach Clinics in 2012 alone



What is the Toyota Classics?The Toyota Classics is an annual charity fundraising concert featuring a changing roster of world-class orchestras and musicians. It is organised by UMW Toyota Motor in collaboration with Toyota Motor Asia Pacific.

Since the inception of the Toyota Classics in 1990, the concert series has raised RM 6.39 million to benefit 50 organisations, through ticket sales and corporate donations. This is substantial fundraising for charity and speaks volumes on the generosity of Toyota’s business associates and the people of Malaysia.

What orchestra/ musician did the 21st edition of the Toyota Classics feature? When and where was it held?The 21st Edition Toyota Classics featured the Vienna Chamber Orchestra, under the baton of leading conductor, Joji Hattori. Acclaimed guitarist Soichi Muraji also performed.

It was held at Dewan Filharmonik PETRONAS, on 8 November 2012. The concert coincided with, and celebrated the 30th Anniversary of Malaysia’s Look East Policy.

How much did the Toyota Classics 2012 raise for charity? Who were the beneficiaries?Proceeds from concert ticket sales and corporate donations amounted to RM 320,328.00.The funds were channeled to two (2) organisations for specific purposes:

I. Persatuan Pemulihan Orang-Orang Cacat Selangor & Wilayah Persekutuan received a Toyota Hiace to facilitate its residents’ mobility

II. Malaysia-Japan International Institute of Technology received a Toyota Prius 1.8 for academic usage

III. Yayasan Anak-Anak Yatim Sultanah Haminah received cash contribution

The 21st Toyota Classics Concert 2012

RM6.39 million raised to benefit 50 organisations (since the Toyota Classics was first incepted in 1990)



How are donation/sponsorship requests processed?

We have set a Standard Operating Procedure to process all requests for donations/sponsorships. Proper due diligence is carried out by officers in charge to ensure that requests entertained are not fraudulent and are in line with the Group’s CSR policy. Authority to approve donations/ sponsorships is in accordance with the Group’s strict Financial Limits of Authority Guidelines.

What type of requests/activity may qualify for UMW’s small grants, corporate donation and sponsorship scheme?On top of our long-term CSR commitments, the Group rewards small grants and donations to the community on a case-by-case basis.

In line with our main CSR framework, we prefer to focus and support causes/community groups related to:• Education• Environmental preservation• Nation-Building and Community Development (including Sports development)

Does the UMW Group have a policy/ specific guidelines on supporting political parties? As a business entity, we choose to remain apoliti-cal in our dealings. We have a clear CSR policy of not supporting activities related to political parties with the exception of areas of national policy/ public interest where a broad consensus has been identified.

In accordance with our CSR policy, we will also automatically decline donation/sponsorship requests that are linked to:

• international causes that may conflict with Malaysia’s national agenda• activities/ groups/causes that are not consistent with Malaysia’s multi-ethnic society and religious environment• activities that are purely driven for the benefit of individuals and personal agendas • other organisations/ activities deemed suspicious or dubious in nature

Small Grants, Corporate Donation & Sponsorship Scheme

Total of RM 305, 803 contributed to 52 different community groups in 2012


UMW Holdings Berhad 090278-P

No. 10, Jalan Utas, P.O. Box 7052, 40915 Shah AlamSelangor Darul Ehsan, Malaysia(+603) 51635050 www.umw.com.my

Documents

2013 CSR Report NEW Small 6