Secura : AGM Q&A

(Incorporated in the Republic of Singapore on 14 August 2015)

(Company Registration Number: 201531866K)

RESPONSES TO QUESTIONS RECEIVED FROM SHAREHOLDERS IN RELATION TO THE ANNUAL GENERAL MEETING TO BE HELD AT 2.00 P.M. ON 27 APRIL 2023 (THE "AGM")

The Board of Directors (the "Board") of Secura Group Limited (the "Company", and together with its subsidiaries, the "Group") would like to thank shareholders of the Company ("Shareholders") for submitting their questions in advance of the AGM and have set out below the responses to the following substantial and relevant questions received:

Question 1

1. How does the adoption of the Progressive Wage Model ("PWM") affect the payroll costs for security guards? Specifically, what is the increase in payroll costs for security guards before and after the adoption of the PWM? And, from a business perspective, is it feasible to pass on this increased cost to customers?
   Company's response
   Since the implementation of the PWM in Secura in 2016, payroll costs for security guards have steadily increased. The PWM requires a minimum wage level for workers in the security industry, which varies based on different PWM ranks, skills and experience levels and job scopes. These wages will continue to increase annually until 2028.
   Due to the highly competitive and price-sensitive nature of the industry, it may not be feasible to pass on all the costs directly to customers. To mitigate this, we have introduced outcome-based contracting to our customers. This approach aims to reduce our reliance on manpower and leverage technology, such as remote monitoring and response from our Integrated Command Centre.
2. Does the management monitor the productivity of security guards in relation to the increased payroll costs under the PWM? And, if so, has the productivity been positively affected? Alternatively, if the productivity has been negatively affected, what steps do the management plan to take to address this issue?
   Company's response
   We believe that providing fair and competitive wages to our security guards is crucial to attracting and retaining talented individuals, and to ensuring their motivation and commitment to delivering high-quality services. As such, we closely monitor the impact of the PWM on the productivity levels of our security officers. Our efforts have yielded positive outcomes resulting in an improvement in average monthly turnover rate from 8% in FY2021 to 5% in FY2022.
   We take immediate actions to address any adverse effects of the PWM on productivity. These may involve offering additional training and support to help our security guards adjust to new roles or responsibilities, adjusting work schedules or job duties to ensure optimal productivity levels, and investing in technology or other tools to enhance efficiency and effectiveness.

Question 2

Does the management plan to expand the Security Technology & Consultancy and Cyber Security business segment both in Singapore and overseas?

Company's response

We are actively seeking out potential businesses that are synergistic with our operations, both locally and overseas. We remain open to exploring all possibilities to expand our business segments.

BY ORDER OF THE BOARD

Kan Kheong Ng

Executive Director and Chief Executive Officer

21 April 2023

This announcement has been prepared by the Company and has been reviewed by the Company's sponsor, United Overseas Bank Limited (the "Sponsor"), for compliance with Rules 226(2)(b) and 753(2) of the Singapore Exchange Securities Trading Limited (the "SGX-ST") Listing Manual Section B: Rules of Catalist.

This announcement has not been examined or approved by the SGX-ST. The SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact persons for the Sponsor are Mr. David Tham, Senior Director, Equity Capital Markets and Ms. Priscilla Ong, Vice President, Equity Capital Markets, who can be contacted at 80 Raffles Place, #03-03 UOB Plaza 1, Singapore 048624, telephone: [phone].