S&O Electronics () Sdn. Bhd. Environmental Report 2020 Content

Title Page Number

Message from MD 2

Summary of the Company’s Business 3-4

Environmental Policy & ISO 14001:2015 Certification 5

Environmental Management Systems 6-9

Environmental Objectives and Achievements 10-11

Environmental Impacts and Reduction Measures 12-22

1 Message from MD

In 2019, widespread of deforestation, unpredictable weather, wildlife poaching and potentially destructive development scheme still remain as main environmental issues affecting all living creatures.

SOEM, as an eco-positive company, shall take every measure to prevent job related hazards from environmental pollution, promote waste minimization and conservation of natural resources.

Several eco-positive activities were carried out in the company to meet the environmental objective. For 2019, SOEM had conducted activities to minimize the environmental impact such as energy saving by changing LED light (18W) from conventional florescent tube with coil ballast (36W), continuation of OPTR (Off-Peak Tariff Rider) for reduction of electricity saving, the utilization of well water for gardening and rain water for toilet cistern usage.

Besides the environmental activities, awareness training had been carried out such as Chemical Safety training, Scheduled Waste Handling Training, Chemical Spillage Drill and also creating awareness on Hazards Risk Assessment and Risk Control and so on for all the related key persons to improve their knowledge and awareness on environmental factors.

2 Company Profile

Company Name S&O Electronics (M) Sdn Bhd Managing Director Mr. Katsutoshi Teraoka Address Lot 202, Bakar Arang Industrial Estate, Map of 08000 , , West Malaysia. Date of Incorporation 31st December 1974 Date of Production 1st January 1976 Commencement Number of Employees 1,728 Land Area 63,521 ㎡ KEDAH Build-up Area 48,690 ㎡ Paid Up Capital RM 24,000,000 (About U$5,700,000)

Georgetown North-South Highway

Penang Bridge Penang airport

3 Our Main Products

- CD/ Micro Compo/ Hi-Fi Compo - AV Receiver/ Slim AVR - Bluetooth related Product Finished Goods - Clock Audio

- Sound Bar - Party Speaker - Sound Partner

Key Component : CD Changer/ CD Mechanism Unit

EMS : Key Components & EMS PCBA : Car Audio, Automotive Lighting, Medical Device, Motor Driver PCB, SMPS, BD PCB, PC PCB

EMS : Box Build : Synthesizer, Bluetooth i-Remote, Game Console/ Game Sound

4 Environmental Policy & Certification

5 Environmental Management Systems

• EMR is to ensure the compliance of the company to ISO 14001:2015 standards. • Each EMS Working Committee’s Responsibilities : • Achievement of objective/ target • Setting programe and activities • Ensure the compliance of legal requirements. • Departmental Representative is responsible to ensure the company operation is comply to EMS 14001:2015 standards and take correction action if necessary

6 Environmental Management Systems

In order to enhance the knowledge and competency of all employees in the environmental aspects, SOEM had conducted several sessions of training program on ISO 14001:2015 Environmental Management System in the fiscal 2019.

Targeted No. of Date Program Goal group participants 08 Jul’ 19 Contractors & Vendors All contractors To create awareness of 12 09 Jul’ 19 briefing on Safety, & vendors contractors & vendors 21 Health, environment & entering the towards safety & health, Security. factory security and environmental compound. requirements .

08 Nov’ 19 Chemical Spillage Drill Chemical Educate staffs on how to 12 Training Spillage Team barricade the area if spillage occurred

7 Environmental Management Systems

No. of Date Program Targeted group Goal participants 12 Jun’ 19 Chemical Safety Chemical Increased awareness level of 53 18 Dec’ 19 training for Handler employee in chemical material 6 employees handling such as identification of chemical material & labelling and including use of PPE and safety data sheet.

04 Apr’19 Scheduled Waste Scheduled Understand the handling of 35 30 May’ 19 Briefing Waste Handler storage, disposal of schedule 48 28 Aug’19 waste according to schedule 77 waste regulation 2005 by Department of Environment

02 Jan’ 19 Tool box talks for Forklift Understand the correct 8 03 Jan’ 19 forklift drivers/ Drivers/ Pallet method of safe forklift driving/ 9 pallet truck Truck Drivers pallet truck driving drivers

8 Environmental Management Systems

No. of Date Program Targeted group Goal participants 27 Dec’ 19 Personal All staffs who To create awareness of all 30 18 Feb’ 20 Protective are handling staffs towards Safety & Health 93 Equipment (PPE) chemical during handling of chemical Training substances . substances

9 Environmental Objectives & Achievements

Objectives Achievements Self Evaluation in Fiscal 2019 in Fiscal 2019 1. Awareness & understanding the Managed to conduct training/briefing for 160 100% procedure during handling of storage and staffs for procedure of Scheduled Waste disposal of Schedule Waste according to handling. Schedule Waste regulation 2005 by Department of Environment

2. Electricity cost reduction from TNB by Manage to obtained the electricity cost saving 37.5% Installation of OPTR (Off-Peak Tariff Rider) for the period = RM67,458.00 to obtain reduction from TNB. Target cost reduction : RM180,000

3. To increase awareness level of Conducted training for 59 staffs for chemical used 100% production staff in chemical material in production line, identification of chemical handling such as identification of chemical material & labelling . material & labelling All the activities were carried out as per plan. (Environmental aspect)

10 Environmental Objectives & Achievements

Objectives Achievements Self Evaluation in Fiscal 2019 in Fiscal 2019

4. To create awareness of all staffs Conducted training for 123 staffs on the use of 100% towards Safety & Health during handling Personal Protective Equipment (PPE) and of chemical substances understand the chemical material Safety Data (Environmental aspect) Sheet (SDS) during handling of chemical material .

5. To save energy through energy saving Replaced conventional fluorescent tube with 100% programmes by increase LED light (18W) LED light as per plan. and replace conventional florescent tube F1 BD final production - 160 pcs. with coil ballast.(36W). F1 Key Component Production - 80 pcs. F2 Playdate Production - 290 pcs F2 Auto Production - 576 pcs. F2 Auto Mezz. Floor – 60 pcs Canteen area – 114 pcs

11 Environmental Impacts & Reduction Measures

Generally, SOEM categorizes waste into 3 types : a) Sellable Waste b) Scheduled Waste c) General Waste

Catergory of waste

80,000 70,000 60,000

50,000

40,000 kg 30,000 20,000 10,000 0 2018 2019 Sellable Waste 78,552 55,682 Scheduled Waste 11,344 7,963 General Waste 48,240 45,340

12 a) Sellable Waste b) Scheduled Waste

Solder Dust IC Tube

E-Waste Sellable Scheduled Spent Mineral Oil & Plastic Tray Waste Carton Waste Water Emulsion

Contaminated Rag & Paper Contaminated Containers Mixed Waste Plastic Waste

Flux & Thinner

‘SOEM reduced the scheduled waste generated from 11,344 kg/lit (2018) to 7,963 kg/lit (2019). A reduction of The Sellable waste being collected and sold to 3,381 kg/lit (29.8%) due to low production and recovery collector for recycling . of solder dross by having in-house solder recycling activity and maximum utilization of flux & thinner by using 5 times cleaning before disposing. 13 E-waste Disposal

Clear instruction and proper labeling are available to ensure proper usage of E-Waste Bin by employees.

E-Waste includes all the electronic wastes which are destined for reuse, resale, recycling or disposal. Two E-Waste

yellow bins are available in SOEM . The purpose of E-Waste bins are to ensure that the handling and disposal of E-

Waste (SW-110) are compliance with Environmental Quality Act 1974 and requirement of Department of

Environmental. Beside that, separate the E-Waste from mixed up with general waste in company.

14 Item Unit 2018 2019 Amount m³ 64,989 56,741 Payment RM 100,577 86,288

Reduction Measures : SOEM Rain Water Reading Record SOEM Well Water Reading Record

Year Usage of Rain Water (m³) Year Usage of Well Water (m³) 2018 307 2018 195 2019 154 2019 60

Rain Water Tank

There are 2 water tanks in SOEM for the purpose of We have been using the well water for gardening since year 2015. rainwater collection. We have been using the rain water for The reduction is due to long dry season during the period. toilet cistern since year 2005. The reduction is due to long dry season during the period. 15 Chemical Substances

ThreeBond 1401B Sankol Lubricants 1001Z Propanol Auto Flux JS-E-05

Tape Head Cleaner TLT808 Floil Daibond Zbond-N-1603H

Upon receiving of new chemical substances, will be stored at Chemical Store Room at Parts Control.

All chemical substances are stored in chemical storage room. Only competent person who had undergone training in handling chemical substances are allowed to enter and handle the chemical substances. The used chemical or scheduled waste are being stored at scheduled waste store room before disposal.

16 Work Flow of Chemical Substances Management Chemical Store of Parts Control

Chemical Storage Cabinet of Chemical Storage of Production Production (Auto) Engineering

Scheduled Waste Store

Scheduled Waste Store Scheduled Waste Store (Solid) (Liquid)

Disposal 17

To ensure the compliance with MS 1596 Standard under the Malaysian Environmental Quality (Clean Air) Regulations 2014, 4 (A) Atmosphere Emissions – Air Emission Monitoring For Chimney

Schedule of Monitoring

Chimney Frequency of Monitoring

2,3,4,5,6,8,9 Conducted once a year

Results (Based on date of Monitoring conducted on 10 February 2020 .)

EQ Clean Air (2014) Chimney* Unit (Concentration) - Measurement In Fiscal 2019 (mg/m³) Item (Test Parameter) Limit (mg/m³) POINT 2 POINT 3 POINT 4 POINT 5 POINT 6 POINT 8 POINT 9 Particulate Matter 50 7.02 9.83 0.28 9.16 18.27 10.12 2.25 Ammonia 30 Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Chlorine 5 Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Hydrochloric Acid 30 Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Hydrogen Sulphide 5 Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Nitrogen Dioxide 400 Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Sulphur Dioxide 400 Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Tin 5 Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Lead 1 Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Mercury 0.2 Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Volatile Organic Compound 150 Not Detected Not Detected Not Detected Not Detected Not Detected Not Detected Not detected

18 Layout for the Location of Chimney

19 4 (B) Pollutant Loads of Public Water Areas 1) Drain Water Monitoring Result for the Fiscal Year 2019 Note : Reference specification is based on Environmental Quality (Industrial Effluent) Regulation 2009. This monitoring is only additional test for reference only as there is no effluent treatment plant in SOEM.

JIT Store Local Store No Parameters Std B Result OK NG Result OK NG 1 Aluminium 15mg/L 0.08  0.64  2 Ammoniacal Nitrogen 20mg/L ND  2  3 Arsenic 0.10mg/L ND  ND  4 Barium 2.0mg/L 0.05  0.07  5 BOD5 at 20⁰C 50mg/L 6  ND  6 Boron 4.0mg/L 0.06  0.06  7 Cadmium 0.02mg/L ND  ND  8 Chromium, Hexavalent 0.05mg/L ND  ND  9 Chromium, Trivalent 1.0mg/L ND  ND  10 Colour : ADMI units 200 ND  ND  11 Copper 1.0mg/L 0.01  0.05  12 Cyanide 0.10mg/L ND  ND  13 Fluoride 5.0mg/L 1.1  1.9  14 Formaldehyde 2.0mg/L ND  ND  15 Free Chlorine 2.0mg/L ND  ND  16 Iron (Fe) 5.0mg/L 0.17  0.66  17 Lead 0.5mg/L ND  ND  18 Manganese 1.0mg/L ND  0.04  19 Mercury 0.05mg/L ND  ND  20 Nickel 1.0mg/L ND  ND  21 Oil and Grease 10mg/L ND  3  22 PH Value 5.5 - 9.0 7.3  7  23 Phenol 1.0mg/L ND  ND  24 Selenium 0.5mg/L ND  ND  25 Silver 1.0mg/L ND  ND  26 Sulphide 0.50mg/L ND  ND  27 Suspended Solids 100mg/L ND  40  28 Temperature 40⁰C 25.4  29  29 Tin 1.0mg/L ND  ND  30 Zinc 2.0mg/L 0.18  0.27  31 Chemical Oxigen Demand / COD 200mg/L 24 √ 45  20 Result : All complied with Environmental Quality (Industrial Effluent) Regulation 2009 2) Sewage Water Monitoring Result for the Fiscal Year 2019 Note: Complied with Environmental Quality (Sewage) Regulations 2009 – Regulation 7

Monitoring has been done on a monthly basis.

Existing Sewage Treatment Analysis Parameters Existing Sewage (Approved Before Jan 1999) - Date Of Report ( BOD = Biochemical Oxygen Demand; COD = Chemical Treatment (Approved -- Result OK NG Oxygen Demand) After Jan 1999) Mechanical System

BOD, at 20 Deg Celcius : mg/l 50 60 44  COD : mg/l 200 240 51  Suspended Solids : mg/l 100 120 10  Apr-19 Oil and Grease : mg/l 20 20 1  Ammoniacal Nitrogen : mg/l 50 60 13 

BOD, at 20 Deg Celcius : mg/l 50 60 19  COD : mg/l 200 240 26  Suspended Solids : mg/l 100 120 23  May-19 Oil and Grease : mg/l 20 20 4  Ammoniacal Nitrogen : mg/l 50 60 2 

BOD, at 20 Deg Celcius : mg/l 50 60 16  COD : mg/l 200 240 60  Suspended Solids : mg/l 100 120 24  Jun-19 Oil and Grease : mg/l 20 20 6  Ammoniacal Nitrogen : mg/l 50 60 21 

BOD, at 20 Deg Celcius : mg/l 50 60 7  COD : mg/l 200 240 33  Suspended Solids : mg/l 100 120 ND  Jul-19 Oil and Grease : mg/l 20 20 4  Ammoniacal Nitrogen : mg/l 50 60 13 

BOD, at 20 Deg Celcius : mg/l 50 60 59  COD : mg/l 200 240 131  Suspended Solids : mg/l 100 120 33  Aug-19 Oil and Grease : mg/l 20 20 6  Ammoniacal Nitrogen : mg/l 50 60 23 

BOD, at 20 Deg Celcius : mg/l 50 60 13  COD : mg/l 200 240 84  Suspended Solids : mg/l 100 120 ND  Sep-19 Oil and Grease : mg/l 20 20 7 

Ammoniacal Nitrogen : mg/l 50 60 19  21 Analysis Existing Sewage Parameters ( BOD = Existing Sewage Treatment (Approved Date Of Report Biochemical Oxygen Demand; COD = Chemical Treatment (Approved Before Jan 1999) --- Result OK NG Oxygen Demand) After Jan 1999) Mechanical System

BOD, at 20 Deg Celcius : mg/l 50 60 27  COD : mg/l 200 240 50  Oct-19 Suspended Solids : mg/l 100 120 ND  Oil and Grease : mg/l 20 20 8  Ammoniacal Nitrogen : mg/l 50 60 35 

BOD, at 20 Deg Celcius : mg/l 50 60 12  COD : mg/l 200 240 47  Nov-19 Suspended Solids : mg/l 100 120 17  Oil and Grease : mg/l 20 20 2  Ammoniacal Nitrogen : mg/l 50 60 19 

BOD, at 20 Deg Celcius : mg/l 50 60 21  COD : mg/l 200 240 36  Dec-19 Suspended Solids : mg/l 100 120 ND  Oil and Grease : mg/l 20 20 6  Ammoniacal Nitrogen : mg/l 50 60 5 

BOD, at 20 Deg Celcius : mg/l 50 60 5  COD : mg/l 200 240 41  Jan-20 Suspended Solids : mg/l 100 120 29  Oil and Grease : mg/l 20 20 5  Ammoniacal Nitrogen : mg/l 50 60 6 

BOD, at 20 Deg Celcius : mg/l 50 60 ND  COD : mg/l 200 240 26  Feb-20 Suspended Solids : mg/l 100 120 10  Oil and Grease : mg/l 20 20 4  Ammoniacal Nitrogen : mg/l 50 60 8 

BOD, at 20 Deg Celcius : mg/l 50 60 ND  COD : mg/l 200 240 62  Mar-20 Suspended Solids : mg/l 100 120 22  Oil and Grease : mg/l 20 20 5  Ammoniacal Nitrogen : mg/l 50 60 23 

Result : Complied with Environmental Quality (Sewage) Regulations 2009-Regulation 7 22 with existing Sewage Treatment approved after Jan 1999. S&O ELECTRONICS (M) SDN. BHD.

Lot 202, Bakar Arang Industrial Estate, 08000 Sungai Petani, Kedah, Malaysia Tel : 04-4232854 Fax : 04-4552219