CSR AT KFC HOLDING

Corporate Social Responsibility (CSR) Plays an Increasingly Important Role in the Malaysian
Business Arena, and KFC Holdings (Malaysia) Bhd (KFCH) has made it an Integral Part of the
Groups Culture
As part of the Groups commitment to contributing to the wellbeing of the communities in which
it operates, KFCH embraces its responsibility through extensive activities within the region. The
Group also never loses sight of the fact that each decision has an impact on both employees
and customers.
The Group takes CSR very much to heart. As a corporation, KFCH realizes the impact it makes
within its community and the vital role in sharing and promoting its CSR principles. As KFCH
takes action to strengthen communities, develop employees potential, offer greater
opportunities for employment and education, as well as preserve the environment, it is with the
belief that the benefits extend to everyone involved.

To the community.
KFCH has always striven to build strong relationships with the communities in which it operates,
and the CSR initiatives in this area highlight the Groups dedication. In certain cases, aid takes
the form of purely philanthropic donations to organisations such as the Kiwanis Down Syndrome
Foundation, the Cancerlink Foundation, Rumah KFC Bakti Semantan, and the Kuala Lumpur
Society of the Deaf, now known as the Malaysian Federation of the Deaf. On other occasions,
the Group joins community members by sponsoring and participating in a variety of events and
activities.

KFCS Feeding Programme

KFCs Projek Penyayang, one of the Groups most rewarding and beneficial initiatives, is now in
its 18th year. Organised four times a year, usually in conjunction with festive seasons, this
programme sees the distribution of free meals to various charity homes. In 2011, 150 homes
with over 12,000 less fortunate residents throughout Malaysia benefited from this programme.
By the end of the year, over 48,000 KFC meals were shared.

Tabung Penyayang KFC

Established in 1997, Tabung Penyayang KFC is a vehicle for the Groups various CSR
programmes to help the needy. Funds are collected for these initiatives in two ways. First, KFC
donates to the fund ten cents from every Chicky Meal sold. Second, collection boxes are placed
at strategic locations in every KFC restaurant in Malaysia, thereby encouraging customers to
add their own contributions. In 2011, Tabung Penyayang made regular contributions to a variety
of charities.

Be the Movement Charity Walk

2011 marks the fifth year that KFC and Pizza Hut participated in the World Hunger Relief
Programme. On 29 October, the Group organised the Step Out, Stop Hunger 5km charity walk
in Putrajaya. Over 10,000 people joined this event, which also featured a games carnival,
musical concerts and various contests as well as other activities. Over RM2.1 million was
collected and distributed to the famine-stricken around the world as well as local charities.

To the marketplace
Halal Initiatives
One of the most essential aspects of the Groups continued success is its insistence upon strict
halal compliance. Customers rely upon all KFCH products and procedures adhering to halal
requirements, and employees are devoted to maintaining the most rigorous standards.
The Halal Food Standards Realisation (HAFSTAR) programme was developed by the Halal
Development Corporation (HDC) and the Department of Standards (SIRIM) to promote
Malaysian halal standards. KFCH is an active participant in the programmes events which
occur all over Malaysia and provide a forum for discussion and education.
In April 2011, KFCH set up an exhibitors booth at the Malaysian International Halal Showcase
(MIHAS), Malaysias largest food and beverage exhibition. The fair drew over 16,000 people
and gave the Group an excellent opportunity to share its halal-certified foods and services with
an international audience

In the workplace

KFCH is currently one of the largest employers in the food sector industry in the region, with a
team of over 24,000. The Group acknowledges the substantial role personnel have played in its
success, and to reward the hard work and fuel the personal and professional development of its
staff, various events are organised throughout the year. The Group believes that each individual
plays an important role in contributing to the success of the company. To reward its staff for their
dedication, commitment and hard work, various activities were organised.

Restaurant Managers Convention

The KFC Restaurant Managers Convention was held at Nexus Karambunai Resort in Sabah.
For their roles in Making KFC So Good (which was the theme of the 2011 convention), the
managers celebrated each others accomplishments at award ceremonies and enjoyed some
well-earned relaxation on outings to the Mount Kinabalu foothills and nearby Mamutik Island.
National Ayamas Challenge
In 2011, Kedai Ayamas and RasaMas introduced a nationwide initiative for staff with the aim of
setting and maintaining superior standards in customer service by way of a fun-filled
competition. More than 60 employees in 16 teams took part in the inaugural competition. The
finals were held in December at Wisma KFC, and the winning teams and individuals won a
range of trophies and prizes.
Champs Challenges
The 2011 National Champs Challenge took place from 26-27 April at the KFC Subang 2 DriveThru. 11 teams competed: nine teams from Peninsular Malaysia and one team each from
Sabah and Sarawak. At the end of the event, the five best team members and manager were
chosen to represent Malaysia in the Regional Champs Challenge in Jakarta, Indonesia in
November 2011. Ten teams competed at this event, and the Malaysian team came home with
five individual and executional awards.
Hari Mekar Quality Day
The Groups holding company, QSR organises its popular annual event, Quality Day or better
known as Hari Mekar. Every December, Hari Mekar brings teams of employees together for one
day to compete in quality-related contests. It is a vibrant forum in which employees present their
ideas for new methods and projects to increase productivity and reduce costs. The winners of
the QSR Hari Mekar proceed to the JCorp Hari Mekar, where they compete against teams from
JCorp and all its subsidiaries. They also go on to represent QSR at the Malaysia Productivity
Corporation (MPC) Awards. The overall winner at the JCorp Hari Mekar for the fifth consecutive
year was KFCHs holding company, QSR.

To the environment

KFCH is concerned with the impact that its operations have upon the environment. The Group
consistently aims to find ways to deploy ecologically sound practices whilst maintaining its high
levels of product quality and shareholder value.

Ayamas Port Klang

Since 1998, Ayamas Port Klang has operated its own waste water treatment facility. The final
discharge earns the Malaysian Department of Environment (DOE) rating of Standard B. The
Group has since invested approximately RM5 million in upgrading the facility a number of times.
The facility uses two different waste water processes, a Continuous Processor and a Sequential
Batch Reactor (SBR) process. At present, the plant treats approximately 2,000 cubic metres of
waste water discharge per day.
Ayamas Bandar Tenggara, Johor
In 2009, the Group opened its second waste water treatment facility at Ayamas Bandar
Tenggara, Johor. This facilitys final discharge is in compliance with the DOE Standard A. Built at
a cost of RM2 million, this waste water facility uses only the SBR process, and it treats 800
cubic metres of final discharge waste water per day.
Bakery & Commissary
The Bakery and Commissary divisions, based at Kompleks KFC Glenmarie, also operate their
own waste water treatment plant. Releasing treated water which meets the DOE Standard B
rating, it employs a Biological Treatment System, which consists of an Up-Flow Anaerobic
Sludge Bed (UASB) and Alternative Intermittent Cyclic Reactor (AICAR).
Region Food Industries
In 2004, Region Food Industries Sdn Bhd (RFI), the Groups sauce manufacturing division,
deployed its own waste water treatment plant. The final discharge meets the DOEs Standard B
rating, and the plant treats about 250 cubic metres of waste water per day using a continuous
biological and chemical process. In 2009, to reduce its environmental impact, RFI also
upgraded its burner to enable its production machinery to use natural gas instead of diesel.