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_EMPLOYEE ENGAGEMENT EVENTS_

Asiaflex Quarter 2 Review Session

With some of our employees working from home and to suit the current situation, our
2nd Quarter Yearly Review for 2021 was held virtually via Teams on August 02, 2021.
During this virtual session, Asiaflex Management Team briefed on our last quarter
achievements, accomplishments, challenges and focus for the next quarter.

This one-hour session was the best opportunity to get all Asiaflex staff together in the
same space virtually. It also served as a platform to share important business updates,
strategy decisions, projects won and progresses toward company-wide goals. We are
looking forward to better business opportunities in the next quarter.

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Launching of Asiaflex Covid19 Vaccination Campaign

In line with Malaysia Government’s direction, Asiaflex is targeting achieving
vaccination rate of at least 80% from our total Asiaflex population by December 2021.

To achieve the above objective, Asiaflex has launched our Covid19 Vaccination
Campaign in early August. A committee has been setup to organize various
interactive campaigns to boost awareness on the importance of Covid19 vaccination.

A series of campaign activities have been scheduled from August until December
2021. We started with the Quiz & Poster creation competition in August with some
mystery gifts as a token to the winners. Please stay tuned for our monthly activities
next months!

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Asiaflex Collaborates with Evyap Sabun for PIKAS
Vaccination Program

As one of the efforts to increase the employees' vaccination rate in Asiaflex, we have
participated in PIKAS Program. PIKAS (Program Imunisasi Industri COVID19
Kerjasama Awam-Swasta) is an initiative organized for the manufacturing workers by
the Ministry of International Trade and Industry (MITI) to accelerate the immunization
of the economic sector and expedite business recovery. Participation of companies
and employees in PIKAS is on a voluntary basis.

The 1st dose injection session for 96 registered Asiaflex employees was successfully
held on August 18, 2021 at Dewan Muafakat Taman Bukit Dahlia together with other
participating companies. These employees are scheduled to take their next 2nd dose
vaccination on September 8, 2021.

We hope this program will help us to achieve our 80% heard immunity target within
the company.

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Asiaflex Merdeka Week

Malaysia Independence Day or 'Hari Merdeka' in Bahasa Malaysia is observed on
August 31st yearly and commemorates the Malayan Declaration of Independence on
31 August 1957.

Asiaflex has organized its inaugural Merdeka Week (from 20 to 31 August 2021) to
enliven this celebration. Many activities have been organized such as virtual run,
coloring & poster creation competition contest for employees’ children, wefie contest
and virtual spiritual talk to suit with our current situation where our employees could
join the events with their family at home.

A virtual celebration event has been organized on September 3, 2021 to announce
the competition winners and this was our platform to gather together in unity to
celebrate Merdeka Day in the new norm.

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_SUSTAINABLE DEVELOPMENT & IVOLUNTEER EVENT S_

Webinar on Financial & Safety Education for School
Children Aged 9 to 12 Years Old.

COVID-19 has changed the way we educate future generations. Thus, under Asiaflex
Purple Heart Program initiative, we have organized an online Webinar on Financial
& Safety Education for Primary School students (age between 9 to 12 years old). Our
main objectives are to provide knowledge and instill interest on basic financial / safety
education to the children.

This was the first online program designed for our adopted school, SKTPP & Asiaflex
employees’ children. We are also proud to have the two speakers from Asiaflex
employees, Mr Nadjmin Md Wahi and Mr Pasman bin Mohd Salleh to deliver the
topics.

This Webinar was participated by 73 students and received overwhelming and
excellent feedback. Some of them even looking forward to a similar event in the future.

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Webinar on Motivational Talk for School Children Aged 16
& 17 years old

The coronavirus pandemic has had an unprecedented impact on everyone. Schools
are closed and students must continue their education through online classes. In their
home-learning program, online learning is difficult and less effective for some students
due to poor internet connection. Some of them could not even afford to buy laptops
hence led to a decrease in motivation among them.

To help students overcome this situation, under Asiaflex Purple Heart Program
initiative, we have organized an online Webinar on Motivational Talk for Secondary
School students (age between 16 to 17 years old) on August 28, 2021.

We are grateful to receive sponsorship from our training vendor, Dr. Teoh Chen Ning
(Simplified Management Consultancy) as part of their company’s corporate social
responsibility.

This Webinar was participated by 80 students and broadcasted via Zoom and FB
Live. Dr Teoh delivered an impactful talk that hopefully inspired the students. He also
provided some daily tips that could be implemented by the students based on his own
experience not only to excel in the examination but also in their life.

With MCO intensified around the country amid rising Covid19 cases and most students
still unable to attend school in person, most parents are very concerned about the
education and learning progress of their children. We do hope this Webinar will boost
students’ motivation, especially for those sitting for their major examination this year.

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#BingkisanmerdekaAsiaflex Program Donated 100 Units of
Groceries to B40 Families in SKTPP & SMKKM2

In conjunction with Hari Malaysia and 64th Independence Day, under the Asiaflex
Purple Heart initiative, we have organized a CSR program of donation to 100
underprivileged students from our 2 adopted schools - namely Sekolah Kebangsaan
Taman Pasir Putih and Sekolah Menengah Kebangsaan Kota Masai 2.

The #BingkisanMerdekaAsiaflex programme was held on August 29 with strict
Covid19 SOP compliance via drive-thru. Each family received a box of groceries, rice,
sugar and other food items. These boxes were handed over by the representatives
from Asiaflex, Mr Ash’ari Abu Bakar, Mr Mohd Khaidzir bin Sagap, Mr Andre Silva,
Mrs Harlina Bachok and 4 SD Committee members with assistance from the school
teachers.

These small and meaningful contributions hopefully can ease some of their burdens
during these difficult times.

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NEW JOINER OF THE MONTH

On behalf of the company, welcome aboard! We are pleased to have you to join us
and hope that everything goes smoothly as you get started. Your expertise and
experience you bring to the table are just what we need. Work smart, good luck and
all the best!

Congratulations on becoming the latest addition in our big
Asiaflex family! We hope you will find your new role
rewarding and challenging.

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STAFF’S BIRTHDAYS FOR
THE MONTH OF SEPTEMBER

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WORD SEARCH VOL 3 ANSWERS & WINNERS

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_ASIAFLEX EMPLOYEE’S INTEREST GROUP CORNER_ _

In August, 3 Employees Interest Groups have launched their first monthly activities
with their members.

We Learnt How to Write & Converse in Korean Language, Hangeul!

For Asiaflex K-Group members, they learnt on how to write and pronounce correctly
their own name in Hangeul. They also learnt on how to pronounce basic conversation
and words correctly.

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Can’t Wait for The Fresh Produces!

Asiaflex Greeny & Greedy Group also known as Asiaflex G&G Group kicked off
their programs with ice-breaking activity before continued with sharing session on
edible plants and herbs.

In September, they planned to start growing some vegetables such as lime and
ginger.

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Bonding Through Cooking

Another Interest Group, Atoi Kitchen as the group name itself reflects all about
cookings, recipes, foods and in between. They kicked off theirs with a Merdeka
Cooking Challenge in conjunction with Merdeka month.

Other than to gain new knowledge and explore new hobby during MCO, the members
also able to bring their relationship closer, virtually.

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Highlights:

COVID-19 Enforcement Officers Audit at Asiaflex

On 5 July 2021, 20 Enforcement Officers from the Ministry of Human Resource
(MoHR), Department of Safety & Health (DOSH), Police Department and Local
Council Authority (MBPG) visited Asiaflex to audit COVID-19 compliance due to the
surge of daily cases in Pasir Gudang, Johor area. The audit went very well and we are
100% in compliance with the government’s policies i.e. evidence/document in place,
implementations etc.). Therefore we are allowed to operate during this period.

We would like to take this opportunity to appreciate and recognize efforts from all
parties that have worked and assisted since 2020, to ensure smooth operations of
Asiaflex in respect of the government’s directions without jeopardizing the safety and
health of our employees. Great commitment from all and let’s sustain this!

On July 22, 2021, another group of 3 enforcement officers from the Department of
Safety & Health (DOSH) visited Asiaflex to audit COVID-19 compliance. Overall they
commented that Asiaflex has a solid SOP compliance & management of COVID-19 in
the plant.

However, there were 1 OFI raised on the insufficient number of hand sanitizers inside
the plant. Action has been made and additional 50 sets of wall-mounted hand
sanitizers have been installed in mid-August 2021.

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Risk Assessment: Work from home (WFH) (eHRA 10892)

Risk assessment is a systematic process of identifying hazards and evaluating any
associated risks within a workplace, then implementing reasonable control measures
to remove or reduce them.

As we are aware, Work From Home (WFH) has become a new norm to most of our
employees and staff. Therefore, we have developed a comprehensive Risk
Assessment for Work From Home as a reference for our WFH employees to maintain
their safety & health while working from home.

Follow the steps below to retrieve the WFH risk assessment: -

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HSE Operation Statistic & Observation – Zero HSE incident recorded in July

A total of 38 HSE interventions were conducted in July 2021. Leading by 20 “positive
observations” (good findings) and 18 “opportunity to improve” were observed and
intervened during HSE Officers’ daily walkthrough in the manufacturing, OSAS and
contractors work area.

Top 3 OFIs in July:
• 3.1 Selection / Condition / Use - 7 findings
• 7.1 Seat belt use - 3 findings
• 5.1 PPE Matrix & Barricades and Warning - 2 findings

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The ‘3.1-Selection / Condition / Use’ findings are as follows: -
• Crane outrigger not fully expanded,
• Access to fire extinguisher blocked, air hoses without whip-latch

• LPG has cylinder free-standing without trolley, output power terminal exposed
without cover, grinder without handle and unsafe position of electrode oven
(potential to fall).

HSE Audit for Contractors

An audit campaign has been organized for the common contractors working in
Asiaflex. In July, a total of 4 contractors were audited by our HSE Officers and the
permit supervisor (person-in-charge).

The contractors were from Maltech, United System, JLM and Version Marine -
commonly work for reels refurbishment and general activities.

In summary, there were 4 findings issued during the audit as below:
• Observations – 3 (2 PPE and 1 HSE Awareness)
• Opportunity for improvement (OFI) – 1 (PPE)

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HSES Program & Training Updates

1. HSES Virtual Training

Providing continuous HSES related training is always our top priority even during the
company impacted by the COVID-19 pandemic.

In July, three (3) virtual training were successfully conducted via Teams:

➢ ISO 45001: 2018 : 27 July 2021

➢ e -HRA : 28 July 2021

➢ Aspect Impact : 29 July 2021

Thank you for your participation in the training. All participants are eligible to receive
tokens from HSES. Please continue to support our HSES Training and grab a chance
to win the Annual Year-End HSES Training Rewards.

Let’s register for the next HSES Trainings………..

➢ Defensive Driving : 18 Aug 2021

➢ Lifting & Rigging : 19 Aug 2021

➢ Chemical Management : 25 Aug 2021

ISO 45001-2018 e-HRA

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2. Distribution of Disposable 3-ply Face Masks for Employees

Based on the feedback from the Employee Forum on the existing washable face
masks which are not suitable for the operational personnel, the Management has
decided to provide disposable 3-ply face masks to our employees.

In July, we received 5000 pcs of disposable 3-ply face masks. These face masks
available to be collected by all employees at the main security guardhouse.
Alternatively, the Head of Departments also can do their own distribution arrangement
within their department.

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Highlights:

An official statement has been released by the Ministry of International Trade and
Industry (MITI) announcing that the Malaysian Investment Development Authority
(MIDA) will no longer process import duty exemption on iron & steel materials (HS
code 7208-7316) to produce finished goods for export, FZ and LMW market.

A duty drawback facility has been introduced to replace the duty exemption on iron
and steel raw materials.

The new ruling has impacted the company, whereby starting from February 22, 2018
Asiaflex is required to pay the Import Duty of Raw materials & Components as listed
below:-

The above are claimable only if we comply with the Custom’s terms and conditions as
follow:-

• The Flexible Pipe must be re-exported within 12 months of the date upon
which the import duty was paid or upon extended period as approved by
Customs (Maximum extension is six months)

• Written notice has been given on the export declaration form that a claim for
drawback will be made, and such claim is made in the prescribed form and
established to the satisfaction of a Customs Senior Officer within 6 months
of the date of such re-export or such further period as Customs may approve

• No error on shipping documentation (CIPL) - Customs Import Declaration (K1
form) and Customs Export Declaration (K2 form)

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IMPORT DUTY REFUND FOR MERAKES PROJECT

Pipe Length: 5465 METER 1st Importation Date: 18/4/2019 (K1 Form)
Last Import Date: 18/12/2019 Load Out Date: 10/12/2020 (K2 Form)

Refund Date: 20/04/2021 Amount of Import Duty Refunded: RM1.028 Million

ACHIEVING TOGETHER: Despite many challenges for the past 2 years, the Logistics
Team was finally able to avoid the risk of losing the import duty refund from Customs
for Marakes Project.

During the importation process from 18th April to 18th December 2019, we made
sure the RFT were in place and all documentation was declared correctly. Next, during
the exportation process, we controlled and guided the Customs Agent in ensuring
our Flexible pipes were declared correctly before the final process of calculation etc.
by them.

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BUILDING THE TRUST – Along the process, we have built trust among all parties
until our method of calculation is accepted for each pipe production. This includes
submitting the Bills of Materials, Flow Chart, Scrap Calculation etc.

Finally, we managed to receive our refund amounting to RM1.028 million from
Customs. This is considering a big success since this is the first time we submitted a
request for extension for our project due to Covid19. Salute to all Logistics Tean for
their efforts on this achievement.

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OPENTEXT

OpenText is one of the common systems for
the management of project documentation in
TechnipFMC. It’s developed to replace various
existing EDMS such as xDB/Lotus Notes,
ePlan, IPC+, ProArc, SharePoint, etc. Soon,
OpenText will be able to interface with
TeamCenter, Global Vault System, LetsAgree,
Primavera, Digital Data Platform, SAP, etc.

_TECHNICAL DATA MANAGEMENT_

Benefits of using centralised project documentation in OpenText

1. Global standard process and system
2. Improved visibility and control
3. Improved collaboration in multi-centre and integrated projects
4. Reduced total cost of ownership for Document Management solutions
5. Core system for digital solutions and integrations

xDB/Lotus Notes will be phased out by end of 2021. A team has been set up in Asiaflex
since end of 2020 and with objective to ensure local migration from xDB to OpenText
a success.

Asiaflex OpenText Implementation Team

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As of today, closed projects archives migration from xDB/Lotus Notes to OpenText is
almost completed with 95% progress. Next coming weeks the team will proceed with
selected active projects migration dry run before moving all on-going projects’
documents to OpenText for good.

To embrace this major change in EDMS, two OpenText trainings had been conducted
in Asiaflex respectively on 6th of July 2021 for general users and on 13th of July 2021
for users involved in Review & Approval process.

You may click the links below to access the recorded training sessions:

06/07/2021: OpenText Introduction & Training (General Users)
1. Recorded training session
2. Presentation slides

13/07/2021: OpenText Training (Review & Approval)
1. Recorded training session
2. Presentation slides

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Asiaflex : 2021 Strategic KPI and Action Plan Update

Mid Term Review was conducted via Team on July 21, 2021 for Strategic KPI and
Action Plan Update. Summary as below:

Note : Refer to PM Communication board (In front canteen) for YTD updates in
2021 Asiaflex Master Scorecard

Performance Management Department New Look

We are proud to announce the New Look of Performance Management Team to
embrace Leaner and More Efficient Organization, effective from July 2021 onwards.

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Meet The Team

Introducing our “Driving Toward Excellence” Team Members :

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Business Excellence (BE) section

Below is the sharing on “What has been accomplished” in Quarter 2 and “What will
be the focus” for Quarter 3 in BE calendar.

1) Strategic Action – BE Lean Project

Total of 5 projects have been registered as Lean Project. Currently all the projects
are under ‘Do’ phase and expected to be completed by October 2021.

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2) Cultivate LEAN Culture – Lean for Everyone Training

The purpose of this course is to provide an overview of what is LEAN concept and the
opportunity it can provide to Asiaflex in order to improve as an organization, doing
things better, smarter, faster and simpler.

BE department has conducted total of 4 sessions which were attended by 63
executives and managers level.

Pre and post-tests were conducted before and after the online course to gauge the
participants’ understanding on the topic and better measure the effectiveness of the
trainings.

Trainings were conducted online via Teams due to current pandemic situation.
Nonetheless, all participants were very committed throughout the sessions. Overall,
they gave positive feedback on the content of the training.

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Virtual Group Picture, Training Rating & Feedback

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3) Benchmarking Journey – Let’s Go Together

Driving Change AWARDS 2021

This year is our fourth year, participating in Driving Change Awards!

For year 2021, Asiaflex has successfully submitted 12 initiatives. We would like to
take this opportunity to thanks the team for their extraordinary effort to accomplish the
entries and meet the submission deadline. Judging is now under way! Let’s wish our
team GOOD LUCK!

Asiaflex Achievement – LEAN journey…

Asiaflex has participated in Team Excellence Innovation Showcase program
organized by MPC (Malaysia Productivity Cooperation) & proudly we would like to
announce that we had Won GOLD Award in the Program!

For year 2021, we have 2 teams from Asiaflex participated in 2 different platforms of
innovation showcase programs – namely MTEx (Mini Team Excellence) and AQEC
(Annual Quality Environment Challenge).

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Upcoming Training Program

1. Training - D.O.W.N.T.I.M.E Template

To support the Lean Journey in Asiaflex and to culture Lean Mindset to all employees,
we would like to introduce a new tool known as the D.O.W.N.T.I.M.E template. The
name of this tool is derived from the acronym of 8 deadly wastes as per shown below:

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This template is very simple yet useful for us to
examine our daily process, identify any non-value-
added steps, and eliminate wastes from the process.

BE Team will conduct few sessions to introduce this
template to all employees soon. Please look forward
to it and be excited to learn this new tool together.

2. Training - Revamp of CIP

New process flow of registering CIP
Registration of CIP will be managed by BE Team by
using Microsoft Excel.xlsm instead of Ennov system.
This much simpler and leaner approach is used this
time to simplify the whole process flow and
encourage more employees to submit new ideas of
improvement in their daily operating process.

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Launching our COST Awareness Campaign

The launch of COST Awareness Campaign is in line we our objective this year to
reduce product cost and operation expenditure (OPEX).

We have identified a few focal areas to work on. Now we just need your support to
provide robust solutions and ideas. Stay tuned for the campaign promotion soon.\

Cascade Virtual Sharing Online Launch Virtual Identify BEST

Top 5 Sessions to Fun Quizezz Contest Reward COST saving
Expenditure discover our Games "Propose BEST session for the projects to be
One Pager COST Analysis To boost
solution on winners execute
COST mindset
COST saving"

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Operation Excellence (OPEX) section

Below is the sharing on “What has been accomplished” in Quarter 2 by OPEX team
and “What will be the focus” for Quarter 3.

1) No Touch Policy Tool

2) Bag Filter Competency Compliance

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3) Mini Silo Commissioning

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4) Manual Prupac Calculation Sheet

5) SP17 Running Speed Improvement

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6) Next Improvement Project : - SP18 Setup Time Improvement for Zeta On
Tube Process

Tacton Project Update

Brief description of TACTON program, Current Status and Challenges.

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5” 15K Fracking Line Qualification

Fracking Line is a new project using DRAPS 5.5” 15K structure that has been

manufactured by ASMU in 2020. In 2021, the MTP (Mounting, Testing, Packing)

scope was awarded to ASMU and therefore, ASMU is required to qualify and to
upgrade our MTP capability range to 15K. DRAPS 5” 15K structure is chosen as
a qualification sample to represent 5.5” 15K products.

What is Fracking?

Fracking is the process of drilling down into the earth before a high-pressure water mixture is
directed at the rock to release the gas inside.

Water, sand and chemicals are injected into the rock at high pressure which allows the gas to
flow out to the head of the well.

The process can be carried out vertically or, more commonly, by drilling horizontally to the
rock layer, which can create new pathways to release gas or use to extend existing channels.

_Qualification for 15K Structure_

Generally, 15K Fracking Line structure is similar with DRAPS drilling application structure
such as 3” 5K with additional flat spiral layer.

Mounting Process
The mounting process for Fracking Line is using the existing process in ASMU and it was
successfully executed by the competent and experienced end fitters.

For the qualification and training purpose, each sequence of end -fitting was completed by
different MTP team (Team A & Team B) and supported by MTP Assistant Eng & Process
Engineer. Five day shifts were taken to complete 1 sequence of mounting activities.

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Testing Process

Factory Acceptance Test (FAT) acceptance
criteria and requirements for the qualification
purpose are in accordance with API 17J. The test
sample was monitored / instrumented to
characterize the pipe behavior (elongation and
torsion) during the full cycle of FAT.

Max pressure of the test is at 21,450psi. Hence,
new concrete cap rated at 30,000psi was used
during the FAT.

Finite Element Analysis (FEA) was conducted to
ensure ASMU testing facility (specifically for
DRAPS) is ready to be used for 30Kpsi pressure
rating FAT and to guarantee the safety of
employees.

DRAPS Bunker & Concrete Cap FEA

The analysis was awarded to the UTHM Faculty of
Mechanical & Manufacturing Engineering, led and
endorsed by IR Dr. Al Emran Ismail.

Based on the analysis focusing on projectile effect,
current bunker is able to provide resistance up to
30Kpsi.

In addition, new concrete caps were fabricated to
give additional protection especially on the end-
fitting area. FEA has been performed by
professional engineer consultant and endorsed by
the qualified IR. The 8 pieces of new concrete cap
are rated up to 30Kpsi.

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Pipe Elongation & Torsion Analysis

The elongation vs pressure and torsion vs pressure were calculated by using EFLEX software
to determine the pipe behaviour during full cycle of FAT.

1. The elongation behaviour is consistent with the theory (EFLEX calculation).
2. The torsion behaviour is slightly different with the theory.

• Theoretically, torsion is in between pressure rising phase ( red) and the pressure falling
phase (blue).

• This phenomenon is related to the initial shape of the pipe before the pressure test.
The pipe is not completely straight, and the steel layers are not on their equilibrium
position.

The fact that theoretical curve is in between the two curves (rising and falling phase pressure)
are consistent enough.

Elongation is less sensitive to this stability phenomenon that is why it fits well with the expected
behaviour.

Thus, we can consider the flexible pipe behaves as expected regarding TechnipFMC internal
certified design tools.

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