FGV : Pre-AGM Questions From Minority Shareholders Watch Group (MSWG)

ADVANCING

RESPONSIBLY

Pre-AGM Questions From

Minority Shareholders Watch Group (MSWG)

Scan the QR

Code to view

FGV AIR &

AFS 2022

DISCLAIMER.

These materials have been prepared by FGV Holdings Berhad ("FGV" or the "Company") solely for informational purposes, and are strictly confidential and may not be taken away, reproduced or redistributed to any other person. By attending this presentation, participants agree not to remove this document from the conference room where such documents are provided without express written consent from the Company. Participants agree further not to photograph, copy or otherwise reproduce these materials at any point of time during the presentation or while in your possession. By attending this presentation, you are agreeing to be bound by the foregoing restrictions. Any failure to comply with these restrictions may result in a violation of applicable laws and commencement of legal proceedings against you.

It is not the Company's intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company's financial position or prospects. The information contained in these materials has not been independently verified and is subject to verification, completion and change without notice. The information contained in these materials is current as of the date hereof and are subject to change without notice, and its accuracy is not guaranteed. The Company is not under any obligation to update or keep current the information contained in these materials subsequent to the date hereof. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company, or any of its directors and affiliates or any other person, as to, and no reliance should be placed for any purposes whatsoever on, the fairness, accuracy, completeness or correctness of, or any errors or omissions in, the information contained in these materials. Neither the Company, its directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of these materials or their contents or otherwise arising in connection therewith.

These materials contain historical information of the Company which should not be regarded as an indication of future performance or results. These materials may also contain forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These forward-looking statements reflect the Company's current views with respect to future events and are not a guarantee of future performance or results. Actual results, performance or achievements of the Company may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward- looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future, and must be read together with such assumptions. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future or likely performance of the Company, and the forecast financial performance of the Company is not guaranteed. No reliance should be placed on these forward-looking statements, if any.

2

FINANCIAL MATTERS - QUESTION 1(a)

Included in the payables was a provision for compensation of recruitment fees amounting to RM112 million. The provision was part of the Group's remediation plan for its existing and former migrant workers.

(page 50 of AIR2022)

1. How many of the Group's migrant workers, were compensated in relation to the above? What is the breakdown between existing and former migrant workers?

ANSWER:

FGV will compensate approximately 20,000 existing migrant workers and 3,700 former migrant workers.

3

FINANCIAL MATTERS - QUESTION 1(b)

Included in the payables was a provision for compensation of recruitment fees amounting to RM112 million. The provision was part of the Group's remediation plan for its existing and former migrant workers.

(page 50 of AIR2022)

1. Is the RM112 million the final sum for compensation of recruitment fees to the Group's existing and former migrant workers? Or does the Group expect further compensation to be made for its migrant workers? If yes, what is the estimated provision for compensation to be made for financial year ending 2023?

ANSWER:

The total provision of RM112 million is based on industry average rate per worker for 23,700 existing and former workers. We anticipate payment for compensation and other contingencies will not exceed this amount. Hence we do not expect to make any additional provision in the financial year ending 2023.

4

FINANCIAL MATTERS - QUESTION 2 (a)

Impairment loss on amounts due from other related companies increased significantly to RM12.75 million (2021: RM0.14 million), while impairment loss of receivables (net) increased substantially to RM13.44 million

(2021: RM2.94 million). (pages 19 & 20 of AFS2022)

1. What is the cause for the significant increase in impairment loss on amounts due from related companies? Which are the affected related companies? What is the probability of reversing or making further impairment losses in financial year ending 2023?

ANSWER:

The significant increase in impairment loss on the amounts due from other related companies was due to delay in payment in respect of sales of goods to subsidiaries of our ultimate holding company. Subsequent to the financial year ended 2022, partial payment has been made hence we were able to reverse part of the impairment loss in the second quarter of 2023. Further reversal or impairment will depend on the payment trend of the debtors.

5