PHARMANIAGA : LAUNCHES ELECTRIC VEHICLES FOR MEDICINES DELIVERY

PRESS RELEASE

FOR IMMEDIATE RELEASE

PHARMANIAGA LAUNCHES ELECTRIC VEHICLES FOR

MEDICINES DELIVERY

KUANTAN, 26 SEPT 2022 - Pharmaniaga Berhad (Pharmaniaga), through its wholly-owned subsidiary, Pharmaniaga Logistics Sdn Bhd (PLSB), is one of the first pharmaceutical companies in Malaysia to respond to the Government's call under the Low Carbon Aspirations 2040 initiative by launching the use of electric vehicles (EVs) for the delivery of medicines in several areas in Klang Valley.

The newly launched EVs was officiated by General Tan Sri Dato Sri Hj Affendi Buang, Chief of Armed Forces in conjunction with the 50th Anniversary of the Armed Forces Fund Board (LTAT) at Royal Malaysian Air Force Kuantan, Pahang.

The operation of delivering medicines to health clinics and Government hospitals using the two new EV vehicles will begin in October.

This is part of Pharmaniaga's long-term sustainability efforts in reducing the Group's overall Greenhouse Gas (GHG) emissions, whilst supporting the Government's call for low carbon emissions under the Low Carbon Aspiration 2040 initiative. The initiative is part of the recently launched National Energy Policy 2022

• 2040 by the Government targets 50 percent usage of public transport with at least 38 percent usage of EV by 2040.

Datuk Zulkarnain Md Eusope, Group Managing Director of Pharmaniaga Berhad said, "As one of the largest pharmaceutical and Government-linked companies in Malaysia, we are honoured to be among the first companies to join hands with the Government in ensuring the sustainable development of the country and contributing towards carbon neutral goal by 2040.

"We plan to increase the number of EVs to 30 percent in the next three years and further increase the number to 60 percent by 2028. In 2035, we aim to fully utilise EVs throughout the Company's logistics transportation ecosystem," he said.

The new EV utilisation will allow PLSB to go through a Proof-Of-Concept and experiment with the feasibility of embedding the EV technology into its existing logistics fleet within the next few months. Upon the successful pilot study, the Group will look into increasing the number of EVs for medicine delivery in more regions within the country.

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"Through these efforts, we are targeting cost-savings in logistics operations and a significant reduction in GHG emissions by 2025. Apart from EVs, we are also looking at a more holistic approach across our diverse business operations through the Decarbonisation Programme such as Energy Efficiency Project, Renewable Energy Solar Project and Carbon Trading," continued Datuk Zulkarnain.

PLSB is the Group's main driver for its logistics and distribution services which contributes to the efficient supply of healthcare products throughout Malaysia, largely for the Ministry of Health, other government institutions as well as private healthcare facilities. PLSB owns five distribution centres located strategically in Selangor, Pulau Pinang, Sabah and Sarawak, with a fleet size of more than 200 transporters that deliver via air, water and land to ensure efficient and timely door- to-door delivery of products.

The strategically located distribution centres and efficient distribution network enable the Group to penetrate a wider delivery network across the nation, making Pharmaniaga the preferred logistics and distribution partner.

Pharmaniaga Berhad is the leading pharmaceutical Company of Boustead Holdings Berhad group of companies, and together with Lembaga Tabung Angkatan Tentera, are the major shareholders of the Company.

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About Pharmaniaga Berhad

Pharmaniaga is the leading pharmaceutical company of Boustead Holdings Berhad Group of Companies, which together with the Armed Forces Fund Board, are the major shareholders of the Company. Listed on the Main Board of Bursa Malaysia, Pharmaniaga's core businesses are generic pharmaceuticals manufacturing; research and development; marketing and sales; warehousing and distribution of pharmaceutical and medical products; supply, trading and installation of medical and hospital equipment as well as community pharmacy. With a vision to be the premier Malaysian pharmaceutical company, Pharmaniaga is guided by its philosophy of 'Do It Right Always' and is empowered by its motto of Passion for Patients. Strengthened by nine manufacturing plants, nationwide logistics and distribution in Malaysia and Indonesia as well as products registered in 15 countries, Pharmaniaga Group is positioned to be a regional player in the international pharmaceutical arena.

For more information, please log on to https://pharmaniaga.com/.

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Forward-looking statement

This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Pharmaniaga Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

Issued for Pharmaniaga Group by Corporate Communications Department, Pharmaniaga Berhad. For media enquiries, please contact Dato' Najmuddin Abdullah at 019-3387777 or email, [e-mail].

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