Kumpulan Perangsang Selangor : 2023 Integrated Annual Report

LEADING
	we invest in better
THRO
UGH
CHAL
LENG
ES	2023
	integrated annual report

vision	brand
leading investments	promise
for shared prosperity	we invest in better

mission

cultivating value, creating positive impact

core values

respect

Recognise the value of other people and accept differences.

discipline

pride

Take pride in our jobs

and KPS Berhad as an organisation and commit to its success.

integrity

Integrity in our conduct is guided by responsibility and accountability.

Operate with team spirit

guided by clear rules of work,

discipline, and a healthy

work-life balance.

extra-mile

Contribute to stakeholders'

growth by "Going the

Extra-Mile".

2023 Integrated Annual Report	1
KPS Berhad

leading through

challenges

In looking back at the year, encapsulated in the theme "Leading Through Challenges", we acknowledge the struggle we

encountered, steering the Group's business with the commitment to creating value even during challenging times.

Despite financial challenges, we achieved noteworthy progress in critical areas of our business. Our commitment to sustainability reached new heights as we initiated impactful initiatives that further strengthened our role in environmental stewardship. We bolstered our governance and risk management practices, establishing a robust foundation for ethical decision-making and ensuring the soundness of our business operations.

In the realm of human capital development, we invested significantly in our talent, cultivating a culture of continuous

learning and professional growth. Our employees have risen to the occasion, embodying the spirit of "Leading Through Challenges" by adapting their skill sets to meet the demands of

an ever-evolving landscape.

This annual report not only reflects our financial realities but also celebrates our success in sustainability, governance, risk management, and human resource development - all integral components of our strategic vision and roadmap. We invite stakeholders to recognise the broader spectrum of achievements and join us in charting a resilient path forward.

47th Monday, 27 May 2024

Annual	Kumpulan Perangsang Selangor Berhad
17th Floor Plaza Perangsang
General	Persiaran Perbandaran
40000 Shah Alam
Meeting
Selangor Darul Ehsan

10:00 a.m.

Scan this to view our 2023 Integrated Annual Report, the audited accounts and other information on KPS Berhad are also available at www.kps.com.my

	about this report	chapter 1:		chapter 3:
	4	about KPS Berhad		investor relations
	about this report	15		57
	9	who we are		investor relations
	the distinction between integrated	17		58
	reporting and sustainability reporting	our business model		engagement channels
	10	20		59
	reporting scope and boundary	corporate structure		annual general meeting
	10	21		60
	icons	where we operate		extraordinary general meeting
	10	22		60
	time period	information on subsidiary companies,		media relations activities
	11	associate companies and other		60
	investments
	basis of preparation			research coverage
		32
	11		62
	corporate information
	other strategic considerations			share price performance
	considered	34
		62
	11	organisation structure
			share price performance KPS Berhad
	applied frameworks	35
		vs KLCI
	12	financial calendar		63
	forward looking statements	36		other communication channels
	12	key milestones and achievements
	board's approval	40		chapter 4:
	12	2023 in review		management discussion and
	distribution & availability			analysis
	12	chapter 2:		64
	values created
	feedback		managing director/group chief
	13	47		executive officer's message
	how to read this report	value creation model		82
		50		review of financial performance
		financial values		90
		52		review of segmental performance
		value added and distributed		94
		54		business review
		consistent dividend returns to		128
		shareholders		group strategies for sustained value
				creation
inside
		55
		key performance indicators
	what's

chapter 5:

our material matters

140

matters material to value creation

150

stakeholder engagement

154

trends and developments impacting value creation in 2023

chapter 6: managing risks

167

managing our corporate risks

169

key risk areas

chapter 7: sustainability statement

173

sustainability statement

174

our approach

176

environmental performance

178

social performance

184

governance performance

chapter 8: leadership

186

board of directors

188

board of directors profile

196

key senior management profile

198

head of departments

201

head of subsidiary companies

chapter 9: governance

206

corporate governance overview statement 2023

244

board audit committee report

251

statement on risk management and internal control

chapter 10 financial statements

274

directors' report

285

statement by directors

285

statutory declaration

286

independent auditors' report

294

statements of profit or loss

296

statements of comprehensive income

297

statements of financial position

299

consolidated statement of changes in equity

301

statement of changes in equity

302

statements of cash flows

305

notes to the financial statements

chapter 11

stakeholders information

421

analysis of shareholdings

423

additional compliance information disclosures

428

list of group properties

435

corporate directory

437

notice of annual general meeting

444

statement accompanying

notice of annual general meeting

445

administrative guide for shareholders

451

proxy form

2023	2023
Integrated	Sustainability
Annual Report	Report

our reporting suite

In promoting reporting conciseness and connectivity of information, the 2023 Integrated Annual Report ("2023IAR") makes references to other documents and reports such as the stand-alone 2023 Sustainability Report ("2023SR") and the Corporate Governance Report 2023 ("CG Report 2023").

about this report

4 2023 Integrated Annual Report KPS Berhad

Kumpulan Perangsang Selangor Berhad ("KPS Berhad" or "the Company") is pleased to present its Integrated Annual Report for the financial year ended 31 December 2023 ("2023IAR"). 2023IAR marks the Group's second integrated annual report, showcasing a significant advancement in our strategic value creation disclosures and narratives.

2023IAR further strengthens the integration of material financial and non- financial data, providing a comprehensive view of the Group's value creation performance, insights and outlook.

2023IAR aims to create more inclusive corporate reporting by highlighting not only financial goals but also the Company's commitment to making a positive social and environmental impact.

This involves efforts like measuring social return on investment ("SROI") and showcasing initiatives aimed at reducing our environmental footprint, such as addressing climate change, managing emissions, and improving waste management practices.

Going beyond historical financial performance, integrated reporting places a significant emphasis on the future endeavours of KPS Berhad and its subsidiary companies ("KPS Berhad" or "the Group").

2023 Integrated Annual Report	5
KPS Berhad

about this report

chapter 1

chapter 2

chapter 3

chapter 4

chapter 5

about KPS Berhad

values created

investor relations

management discussion

our material matters

and analysis

Essentially, KPS Berhad's 2023IAR aims to provide stakeholders with comprehensive insights, enabling them to make well-informed assessments and decisions regarding the Group's business and brand equity.

It presents a comprehensive approach to integrating sustainability-related topics and disclosures, underscoring the significance of environmental, social, and governance ("ESG") considerations ingrained in KPS Berhad's vision, mission, and day-to-day operations. It also provides insights into our status and future outlook, discussing key aspects such as capital allocation, risk dependencies, and multi-capital narrative. Emphasising the inter-linkage between financial, manufactured, social, human, intellectual, and natural capitals, the report offers a concise exploration of the Group's holistic performance.

2023IAR has been developed in accordance with the Principles-based Framework of integrated reporting comprising the six capitals, seven guiding principles and eight content elements.

1 Since August 2022, the Value Reporting Foundation ("VRF") has merged with the International Financial Reporting Standards ("IFRS') Board with the Integrated Reporting Framework now becoming a pivotal part of the effort to link sustainability disclosures with financial statements as prescribed by the emerging IFRS S1 (General Requirements for Disclosure of Sustainability- related Financial Disclosure).

6 2023 Integrated Annual Report KPS Berhad

chapter 6	chapter 7	chapter 8	chapter 9	chapter 10	chapter 11
managing risks	sustainability statement	leadership	governance	financial statements	stakeholders information

about this report

			business perspective
		previous						current
		short-term driven				long-term driven
	financial	value	non-		financial			value		non-
	financial					financial
	value	creation		value			creation
	value					value

Archival value creation approach focusing on value creation based on financial performance, with the aim of generating profit above all else. Success is measured by the returns provided to shareholders and the financial returns on investments. This approach is often short-term focused, prioritising immediate gains over long-term growth.

Evolved value creation approach where creating value is centered on sustainability. This approach considers the interplay between financial and non-financial elements and recognises the need for both to be integrated to drive the business model. While financial goals remain important, they are considered in the context of an agile business model that can adapt to changing stakeholder views, environmental concerns, and societal needs.

6

capitals

• Financial
• Manufactured
• Intellectual
• Human
• Social
• Natural

7

guiding principles

• Strategic focus and future orientation
• Connectivity of information
• Conciseness
• Reliability and completeness
• Consistency and comparability
• Materiality
• Stakeholder relationships

8

content elements

• Organisational overview and external environment
• Governance
• Business model
• Risks and opportunities
• Strategy and resource allocation
• Performance
• Outlook
• Basis of preparation and presentation

2023 Integrated Annual Report	7
KPS Berhad

about this report

chapter 1

chapter 2

chapter 3

chapter 4

chapter 5

about KPS Berhad

values created

investor relations

management discussion

our material matters

and analysis

about this report

our capitals

6

2023IAR contains information on the resources used and the results achieved by KPS Berhad's business model in 2023. It covers how we sustain resources through our business and operational strategies and the outcomes we generate, along with the trade-offs involved. For instance, we explore how generating value in one area might impact or reduce value in another area of our operations.

fi
	n
c		a
		n
a
		c
p			i
		i		a
		t		l
			a
				l

All liquid assets, such as cash and cash equivalents, equities, shareholdings, investments, debts and liabilities

as well as liquid

assets.

m
a
n
	u
		f	a
			c
c				t
a				u	r
		pi			e	d
			t
			al

All physical

assets employed by the business model, including machinery, equipment, business premises owned or leased.

inctaeplliectual tal

The KPS Berhad business model, proprietary knowledge including intellectual property, related internal systems

and processes,

market insights and

intelligence.

l

a

t

i

p

a

c

l

a

i

c

o

s

l

a

it

an

p

ca

m

hu

The value and

strategic capability

The total workforce

developed through

including collective

stakeholder

and individual

relationships and

capabilities,

engagement,

competence

brand credibility

and professional

and equity, values

contributions of

created for society

employees.

including SROI.

		l
		a
	t
	i
	p
	a
c
l
a
r
u
t
a
n

Consumption

and preservation

of natural and

physical resources

such as raw

materials, energy sources and more by the business model.

application of the

7

guiding principles

The seven guiding principles, which serve as guidance pillars towards achieving best practice integrated reporting, have also been applied in the development of content chapters and the use of references to other reports i.e. stand-alone 2023SR. This is consistent with the principles of conciseness and connectivity of information as prescribed by the Integrated Reporting Framework. Other principles such as materiality and stakeholder relationships are presented in a condensed form in 2023IAR but are explained in greater detail within the 2023SR.

8 2023 Integrated Annual Report KPS Berhad