As an embodiment of Tempo Scan’s Core Values, namely Honesty, Equality, Usefulness, Responsibility and Hard Work which have always been firmly held and have been the basic principles for more than 70 years PT Tempo Scan Pacific Tbk ("Tempo Scan") has established. Since 2011, Tempo Scan has established a Corporate Social Responsibility ("CSR") Center as a form of further commitment to Core Values.

Tempo Scan continues to develop its CSR program from time to time in line with the Indonesian government’s ambition to build a better quality of life with its stakeholders, through a systematic CSR program in all its business activities.

Environments

As a part of its operational strategy and action, Tempo Scan implements various programs to contribute to Environment protection and conservations, such as:

1. Efficient and environmentally friendly use of energy

Energy is essential element in the manufacturing process and company activies. Tempo Scan source of energy are electricity supplied by public services company, natural gas used to generate steam and diesel fuel used as the back-up electricity power and currently on the evaluation of installing the renewable energy from solar cell panel. Tempo Scan monitor and controls its energy consumption in daily basis as part of the routine Key Performance Indicator (KPI) especially in Manufacturing division has converted its energy source to more enviromental friendly, changing its steam generator power from diesel fuel to natural gas. The conversion process from diesel to gas has been completed for all factories in PMG (Pharmaceutical Manufacturing Group) and in grup BNMG (Beverage & Nutrition Manufacturing Group).

The next step is to implement renewable energy, the Manufacturing division has started using solar cell panels (Solar PV) for preheating boiler feed water as a pilot project. Furthermore, aligned with the increasingly affordable price of solar cells, Tempo Scan is evaluating the application of these solar cells in all factories in the manufacturing division as a source of electricy through a hybrid system with the current electricity supply.

Aside from the energy source convertion, the other main strategy for energy conservation is to reduce usage of energy consumption on every unit produce at every factory site. This energy saving efforts at each factory location are as part of the factory management key performance indicators (KPI) are measured and monitored in dailty basis. The targets in KPI are determined based on the principle of continuous improvement and must be better from year to year.

Activities in energy saving firstly begins with creating awareness among all employees. Then, on more technical part, energy usage is directly related to the efficiency of the production line which is reflected in Overall Equipment Efficiency (OEE) which a metric measuring equipment reliability, productivity and quality. The higher the OEE, the more efficient of its enery usage, because it produces more products with the same of less energy usage. The efforts to improve OEE, such as preventive maintenance, equipment reconditioning or rejuvenation with latest technology, have an impact on significantly increasing OEE. Fot the new equipment or new technology, the Manufacturing division evaluates level of energy usage of its new equipment as part of its evaluation in the new machine or technology selection process.

The second focus on energy saving efforts is to reduce its energy losses. Steam as one of key element in energy usage in manufacturing process is controlled and monitored precisely, such as the steam pressure which represent its energy level is produced in the steam generator according to manufacturing process requirement to prevent un-necessary loss due to pressure reduction; the next is condensate losses. The condensate that still contains a lot of heat energy, has been used to utilize to pre-heat other process using a recovery system and the condensate is then returned to the steam generator as boiler’s feed water. This condensate return is reducing energy to heat the boiler feed water from room temperature.

The third is on the compressed air supply system is also a major user of electricy. Maintennce and repairing the air pressure system, by overcoming leaks and adjusting the pressure to an optimal level so that the air compressor system does not work too often is an effort to save electrical energy.

Next, on the field of Heating, Ventilation & Air Conditioning (HVAC) systems, which contribute the biggest energy consumption in manufacturing process. Energy saving has done by changing the cooling system which originally used an air-cooled chiller to a watercooled chiller, which way more effective in preventing heat losses; to use thermal storage tanks so that HVAC cooling performance becomes more efficient; and optimizing and balancing air pressure between rooms through the Building Automation System (BAS) which automatically controls and regulates the temperature and humidity in the production building.

Lastly, the replacement of conventional electric motors with new motors equipped with frequency converters has started gradually, allowing a further reduction in electricity consumption. Likewise, for lighting lamps, the replacement of tube lamps (TL) with light emitting diodes (LED) is carried out in stages.

2. Water Conservation

The core of the water conservation program is water management which is carried out in accordance with the 3R principle (Reduce, Reuse and Recycle).

The first R, namely Reducing water consumption, is carried out through various efforts such as conducting regular maintenance of water pipes to prevent from leaking, improving cleaing procedures of production equipment through the cleaning in place (CIP) program or off-line cleaning, without compromising the level of cleaning effectiveness. Adjustments are made with a systematic approach, such as adjusting the CIP computer program, establishing, and testing enhanced cleaning standard operating procedures (SOP) and conducting validation protocol before new cleaning procedures are implemented. Reducing water consumption is also influenced by employee behaviour. This behaviour is addressed through training, and water saving campaigns as a regular program and campaign.

The second R, namely Reusing water. Reusing has been done for example in the CIP, water from final rinsing is used to conduct pre-rinsing stage in first stage of CIP.

The third R, namely Recycling water. Waste water from production process or from domestic use is channelled to the waste water treatment plant (IPAL) to reduce its contaminant such as separation process, aerob and anaerob process to reduce its Biological Oxygen Demand (BOD) and its chemical oxygen demand (COD) in accordance to applicable regulations. The Manufacturing division operates IPAL in all factory sites and initiated further processing the waste water for recycling or reuse such as for gardening purposes. Moreover, Tempo Scan has implemented infiltration wells for rain water in its factory sites.

The usage of water is also part of the factory operational KPIs, where the target is stricter from year to year to encourage continuous improvement and contribute more to the water conservation program.

3. Air Emission Management

Air emissions is routinly measured at every manufacturing facilities to ensure compliance with applicable regulatory requirements and the results are regularly reported to the authorities. One of the main contributor to the air emission is by converting the steam generator source of energy from the diesel fuel to the natural gas.

4. Waste Management

Waste generated from manufacturing activities also follows the 3R principles.

The first R, waste reduction, is consistently carried out at each factory location by increasing the efficiency of production processes and equipment which results in reducing the amount of material waste produced by production machines and equipment. The use of plastic packaging in the production process has been gradually reduced by using stainless steel containers that can be reused indefinitely. The second R, reuse of packaging materials, includes paperboard boxes to transport packaging materials from the packaging factory to the production factory, which are returned to the packaging factory for use under a strict condition.

The last R, recycling is executed in collaboration with vendors. For packaging materials, such as paperboard boxes, plastic drums, paper drums, etc. that can not be used in Tempo Scan’s production activities and have been strictly evaluated for commercial value, they are sold to reprocessing companies through certified vendors.

Meanwhile, for hazardous waste or B3 is collected in a licensed temporary storage area, then transported and processed further by certified company, following the provisions regulated by the environmental authority.

5. Mechanism for complaints about environmental problems

Tempo Scan has implemented a mechanism for regulating complaints about environmental issues which is regulated in the provisions of the Standard Operating Procedures of Internal and External Keselamatan dan Kesehatan Kerja (K3), it states that "External communication on Occupational Safety and Health (K3) and environmental protection is any form of conveying or exchanging information between Tempo Scan and other parties outside the company related to the K3 Management System including environmental issues". Since 2021, a Safety Health & Environment (SHE) Committee has been formed and functioning at the factory location or manufacturing area, one of whose roles is to consistently maintain relations with authorized agencies to improve environmental management performance.

6. Certification/Permit in the environmental sector:

Tempo Scan fulfils certification or permits related to environmental management in accordance with applicable regulations. The factories report the management of environmental aspects in the form of UKL-UPL document to the government on regular basis.

Employment Practices, Occupational Health, and Safety

1. Equality in employment opportunities

Tempo Scan operates in almost all parts of Indonesia for Distribution and Sales Operations as well as Manufacturing Facilities (Factories). And the company provides an open opportunity for anyone to take part in the selection process for candidates of our employees as an embodiment of one of the company’s values, namely Equality.

The recruitment process is carried out by prioritizing the results of competency evaluation and meeting the required job qualifications regardless of the gender, ethnicity, religion, social status, or physical condition, because Tempo Scan believes that human beings are created equal, therefore they should have the same opportunities to get job opportunities without any discrimination. And the principle of equality is also applied in individual development and opportunities for career development.

2. Work Facilities and Safety

Tempo Scan is committed to provide safe work facilities for the employees. The company provides work safety facilities to support its operational activities, in accordance with applicable regulations and legislation which cover health, security, work safety and protection of the surrounding environment. The company has implemented a systematic and structured K3 management system (SMK3) in manufacturing facility units (Factories).

This work safety aspect has been outlined in the Company’s Operational Standards for daily implementation to ensure good and correct work methods in accordance with applicable legal requirement. All Tempo Group factories, except the newest KMM 3 factory which has only started its full operations in Q3-2023, have received an SMK3 certificate from the Ministry of Labour with the Gold Category. And upon the implementation of SMK3 in our factory in East Java, we have received support from the government, in the form of awards from the Ministry of Labour and the Governor of East Java.

Continuous improvements to create safe work facilities is kept going through a process of hazard identification and risk analysis which is verified by a field inspection process. Improvement programs to reduce the level of risk and to control the severity of accidents in the form of asset investments have been carried out as an ongoing basis. At the same time, employees’ safety awareness and fostering to always be safe are continously happened by means of education and campaign programs. To ensure that all equipment is in good and safe condition, a maintenance program for their factory equipment and infrastructure is an important element to ensure that it does not become a source of risk to factory safety. Apart from that, safety training and safety rules are also applied to partner businesses such as engineering contractors and service contractors who work in our working area. As an element of training process, emergency response simulations are periodically carried out which are participated in by everyone in the work unit area.

3. Work Accident Rate

The company has a vision to have zero accident rates in all business operations. For this purpose, the Occupational Health and Safety (K3) aspect is an important element in factory work procedures which control the safe behaviour of employees and to ensures the safe condition of factory infrastructure. Safety must start from oneself with behave safely and to have caring to others to also behave safely so that the safety culture will be created within the factory or work unit environment.

For every accident inside the work premises, an analysis of the causes is carried out to define the preventive and corrective actions that need to be taken. The results of the analysis are disseminated to relevant employees as a lesson learnt to ensure no recurrence. The factory periodically reports the work accidents statistik and safety management system implementation in the factory to the relevant Labor Office.

4. Occupational Health

Employee health is an important concern for companies to ensure employees can contribute to the company at the best level of their productivity. The company encourages employees to always be healthy and behaving healthily. The company provides occupational health clinics and doctors who hold the Hyperkes certified at the factory. In order to monitor the employee health which remain in a healthy condition and meet the requirements of the workplace and the product category being produced, every year employees undergo for a Medical Check Up. Furthermore, Healthy Talk activities are regularly scheduled with various topics for employees. The other way to deliver the health messages is through Inhouse K3 Bulletins to increase awareness of personal health.

Social and Community Development

1. Use of Local Manpower

Tempo Scan does not have specific policies regarding the recruitment of local manpower. However, TempoScan keep prioritizing to recruit employees from the local areas as long as they meet the requirements and specifications for the positions.

2. Local Community Empowerment

As a form of concern to the local community Tempo Scan empowers the local resources by employing local manpower for activities in the factory areas and handing over the non-hazardous waste processing activities to the local cooperatives or communities around the factories. In addition, Tempo Scan also empowers Small-Medium Enterprise (SME) as suppliers of goods and services within Tempo Scan while still adhering the implementation of good corporate governance.

Concern for People in need

Tempo Scan Group’s concern to the community by various activities with a total value of Rp 8.5 billion, as a manifestation of its Core Values of "Responsibility" & "Usefulness" to the Nation and the Republic of Indonesia, comes in various activities such as follows:

1. bodrex Merah Putih Berbagi

In 2023, bodrex once again conducted CSR program during the Ramadan period through #bodrexMerahPutihBerbagi Berkah Ramadan. This CSR program aims to provide nutritious iftar meal packages to those in need, enabling them to maintain their daily activities and enjoy their fasting days. bodrex distributed thousands iftar meal packages to others through a Food Truck that travelled to various locations in Jabodetabek.

2. vidoran Berbagi Kebaikan

vidoran also held Corporate Social Responsibility (CSR) program to support Indonesian Children becoming #SiapJadiKuatdanCerdas. vidoransharesgoodnessbygiving vidoran Xmart 1+ Growing Up Milk with a total value of Rp 6,7 billion to more than 20,000 children of Orphans, Schools and Government Institution in Indonesia.

vidoran Xmart has been trusted by 9 out of 10 Indonesian mothers because of the nutritional composition in the complete imunUp formula. Furthermore, vidoran Xmart is also a healthier choice for Indonesian children with lower sugar content, high DHA, inulin, vitamin C, D3, E, and Zinc to support nutritional fulfilment in order to create intelligent Indonesian children with strong body immune and optimal growth.

3. Ciptakan Satu Langkah Bersih untuk Ribuan Senyuman, SOS Hadirkan #BaktiSOSial

In 2023, S.O.S raised the message of the importance of keeping clean for healthy and comfortable living through S.O.S Squad campaign with the theme "Clean Home, Comfortable Family". In this CSR activity, S.O.S reached 200 orphanages and nursing homes in more than 20 cities across Indonesia by providing donations in the form of Home Care hygiene products and other Tempo Scan products with total donation of more than Rp 1.8 Billion as well as carrying out clean-up activities.

Responsibility for Goods and/or Services

Tempo Scan has always hold to the core values of Responsibility and Usefulness in creating and developing products that meet the needs of and are safe for use by consumers. The production and marketing of high-quality products by Tempo Scan is in compliance with standards issued by National Agency of Drug & Food Control or Badan Pengawas Obat dan Makanan (BPOM), Ministry of Health or other regulatory agencies. The production processes and its facilities are in accordance to the standards of good manufacturing practices such as Cara Pembuatan Obat yang Baik (CPOB), Cara Pembuatan Obat Tradisional (CPOTB), Cara Pembuatan Kosmetik yang Baik (CPKB), Cara Pembuatan Alat Kesehatan yang Baik (CPAKB), Cara Produksi Pangan yang Baik (CPPB), Cara pembuatan Produk Perbekalan Kesehatan Rumah Tangga yang Baik (CPKRTB), and Cara Distribusi Obat yang Baik (CDOB) which are continuously upgraded to latest Good Manufacturing Practices (GMP).

Information regarding product and services from Tempo Scan can be accessed by shareholders, stakeholders, and public through the Tempo Scan website: www. temposcangroup.com. For more comprehensive information is also provided via email to corporate. secretary@thetempogroup.com. This e-mail address is also provided to accommodate and retain feedbacks and complaints from customers or they may also contact Tempo Scan Cares for Consumers at telephone number 0800-150-8888.