UEM Sunrise : UEMS Responses to pre AGM questions received from shareholders

RESPONSES TO QUESTIONS RECEIVED

IN RELATION TO THE 16TH ANNUAL GENERAL MEETING ("AGM") OF THE COMPANY

UEM SUNRISE BERHAD ("THE COMPANY")

200801028815 (810144-W)

Questions received from shareholders prior to the AGM

Shareholder 1

Assalamualaikum Mr. Chairman,

I purchased a property in Forest Height using an AGM voucher last year. Recently, there was a fatal accident at the intersection, leading the local authorities to close it immediately.

This closure has caused significant inconvenience for me and others. I am concerned that a premium housing development lacks proper access roads, requiring us to use neighboring residential areas for entry and exit.

This situation could negatively impact on the company's image due to inadequate planning.

Thank you.

Response

Waalaikumusalam,

Firstly, we would like to extend our gratitude for your support of our housing development at Forest Heights, Seremban. We are committed to providing high-quality products and services to ensure customer satisfaction.

Regarding the recent tragic accident on Persiaran Forest Heights, road maintenance and responsibility are now managed by the local authorities. We are working with Majlis Bandaraya Seremban ("MBS") diligently to develop long-term solutions, including the installation of traffic lights at the intersection. Currently, MBS has temporarily closed part of the intersection for safety reasons. We apologise for any inconvenience caused.

While we await approval, we have taken immediate measures in upholding the highest safety standards, such as installing rumble strips to reduce vehicle speed and removing trees to improve driver visibility.

(Translation in English)

Minutes of 16th AGM - Appendix I

P a g e | 1

Shareholder 2

1. Why has UEMS In January 2024 sold 14 lots of land around 36 acres specified as 'agriculture/ dusun lots' in Iskandar Puteri's prime residential area Ledang Heights, at the sale price of only RM3 psf? This is well beyond market value. In November 2022, the COO Southern Region of UEM Land (En Saniman Apandi) discussed selling this land to residents at a rate of RM18 psf, and the representatives showed interest in finding buyers at this price.
   Furthermore, in a meeting with UEMS regarding handover of management of Ledang Heights to residents on 25 March 2024, we were informed by the UEMS Southern management team that UEM had a professional valuer/surveyor assess the land value at RM18 psf.
   Can the Management explain the reason for the land disposals to be transacted at below market value?
2. It has now come to light that the sale did not comply to the latest requirement under the Malaysian law which demands for sewerage pipes to be constructed on public reserve land. Several of the 14 sold lots have sewerage pipes running underneath them, and should therefore not have been sold.
3. Since 2004, Ledang Heights' property purchasers in Iskandar Puteri, have paid not only maintenance charges but also sinking fund contributions to Nusajaya Land Sdn Bhd, a wholly owned UEMS subsidiary.
4. 1. Why is UEMS refusing to properly and transparently account for the collected and expensed monies?
   2. What happened to the sinking fund monies collected for Ledang Heights, which until March 2024 are calculated to be around RM2.7 mil? Will UEMS transfer the sinking fund monies together with the cash balance (post audited accounts) to Persatuan Penduduk Taman Ledang Heights Iskandar Puteri as part of the handover of management in September 2024?
5. The Ledang Clubhouse (The Ledang Urban Retreat) was promised to the East Ledang owners when they purchased their properties in East Ledang. In addition, the excerpt from the 2016 UEMS Annual Report (page 30) shown below mentioned East Ledang featuring 31 gardens and residences with 3 of these 31 gardens are in fact located within the boundaries of The Ledang Clubhouse.
   Unfortunately, The Ledang Clubhouse has not been in operation since 2020 and is still not open for East Ledang owners to use. The East Ledang owners have now heard a rumor that UEMS is currently actively looking for a buyer for this clubhouse.
6. 1. Is UEMS intending to sell this clubhouse? If yes, how will UEMS fulfill its promise to the East Ledang owners that the clubhouse is 'built in luxurious contemporary Malay style to cater for residents living in East Ledang'?
   2. Has UEMS made provisions for damages to be paid for the case that East Ledang owners go to a court of law and claim damages?

Minutes of 16th AGM - Appendix I

P a g e | 2

Response

(a)

(b)

(c)(i) & (ii)

The Management has agreed to sell the land on as-is-where-is basis. This is based on the indicative valuations provided by both Asian Pullprop and KGV ranged between RM2 - RM3 psf.

The RM18 psf was actually the indicative value that was derived based on the provision of necessary infrastructure and authorities' approval for sub-division on the said land.

There was no official valuation that confirmed the subject lands were evaluated at RM18 psf. This does not justify the assumption that the lands were sold below market price.

The sewerage line was constructed based on IWK's approval back in 1999. However, we will comply with the latest requirement by the relevant authorities prior to handing over, if any.

Total service charges collected to date amounting to RM23.4 mil, while total sinking fund is RM2.3 mil. In addition, as at to date, the developer, Nusajaya Land Sdn Bhd has advance RM2.3 mil to support the maintenance of Ledang Heights.

(d)(i)

(d)(ii)

The LURE Clubhouse begun its operations in 2010, and membership for the clubhouse was offered to selected purchasers of East Ledang and Ledang Heights via various sales packages. The LURE Clubhouse was initially operated by our internal development team until the appointment of an external operator to manage it in 2020. However, the contract was terminated in 2022, following an assessment on the operator's poor performance.

UEMS is currently looking for an operator/prospect to manage the Clubhouse which may include the sale of the existing building to the said clubhouse operator.

The clubhouse was provided as per the representations made in the sales brochures and marketing collaterals. However, the developer is under no obligation to continue with the maintenance of the said clubhouse in perpetuity if it is no longer feasible to do so.

The developer has not made such provisions as we are of the opinion that we are not obligated to compensate the owners of East Ledang for failure to continue with the operations of the clubhouse.

Minutes of 16th AGM - Appendix I

P a g e | 3

Question on Door Gifts (Various Shareholders)

1. Kindly consider distributing door gift to delight shareholders?
2. Voucher

Response

After careful consideration by the Board, we would like to inform that there will be no distribution of door gifts or vouchers for shareholders, proxies and corporate representatives at this meeting and in future meetings, in line with our No Gift Policy.

To demonstrate our commitment towards rewarding the shareholders, the Board has in February 2024 approved the revision of our dividend policy from between 20% to 40% of the profit after tax and non-controlling interests, or PATANCI, to between 40% to 60% of PATANCI, subject to availability of distributable reserves and adequate free cash flow from operations.

We are pleased to inform that we have recently paid out a dividend of 0.75 sen per share in respect of the financial year ended 31 December 2023, on 24 May 2024, representing a payout ratio of 50% in line with our dividend policy.

Minutes of 16th AGM - Appendix I

P a g e | 4