Wellcall : QUESTIONS AND ANSWERS - 18TH AGM

WELLCALL HOLDINGS BERHAD

Registration No. 200501025213 (707346-W)

18th Annual General Meeting (23 February 2024)

Questions And Answers

Pre-AGM Question By Shareholders

Q1. Could management breakdown your customers based by industry?

A1. We analyse our customers based on geographical segment. It is also in accordance with applicable Malaysian Financial Reporting Standard. Segment information is presented in Notes to the financial statements in respect of the Group's business and geographical segments.

Q2. In this new financial year, how management view the overall growth prospects of the company?

A2. The Board is optimistic that the Group will remain resilient and able to sustain its market share and positioning despite the challenges ahead in the global economy.

Q3. Shower pressure at 1st floor of 2 storey link houses are always low, can the company produce a shower head to overcome this problem, good market demand.

A3. Our focus is on manufacturing of low and medium pressure industrial rubber hoses. We do not rule out any business opportunity that enables the growth of the Group.

Q4. If the virtual meeting is expensive, why not go back to physical meeting?

A4. Virtual Annual General Meeting (AGM) provides flexibility and convenience for shareholders to participate in our AGM from different locations.

Q5. When to pay dividend?

A5. We will announce our interim dividend from time to time via Bursa Malaysia's website.

Question Posted By Shareholders During AGM Session

Q6. Has the meeting started?

A6. We started our AGM at 10.00 a.m.

Q7. Hi is the oil and gas sector constitute of about 50% of sales? With the trend of renewable, ESG and EV do you foresee lower demand of rubber hose from this sector in the long term?

A7. The oil and gas sector contributed approximately 50% of the revenue. We do foresee that demand will be affected in the oil and gas application markets in future as the National Energy Transition Roadmap ("NETR") had announced that Malaysia is on the track to achieve zero net emission by the year of 2050.

Q8. Hi which sector (o&g, f&B, mining) is having highest growth in sales for year 2023?

A8. Overall, the oil and gas, air and water sectors captured the higher growth as compared to other application market sectors.

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WELLCALL HOLDINGS BERHAD

Registration No. 200501025213 (707346-W)

18th Annual General Meeting (23 February 2024)

Questions And Answers

Question Posted By Shareholders During AGM Session (cont'd)

Q9. What is the impact of Red Sea Crisis to freight cost? How does it affect sales and customer shipment?

A9. We are less affected by logistical disruption, allowing us to deliver most customer orders promptly.

Q10. Who is Wellcall biggest competitor?

A10. There are few players who are competing with us.

Q11. During last year AGM, management informed that utilisation rate was between 90% and 100% depending on the production sections. Any expansion plan? What is the expected Capex?

A11. Our utilisation rate still remains between 90% to 100% depending on the production sections. We are investing in an automated machine in plant 3, estimated approximately RM10 million in total including building, facilities and infrastructure.

Q12. How much this meeting cost

A12. The virtual AGM cost the Company approximately RM16,000.00.

Q13. Reward participant SHAREHOLDER to encourage support for VIRTUAL MEETING

A13. We reward our shareholders through dividend payment.

Q14. How many % of company product are export to which country and how many are sold locally.

A14. The export and local market contributed approximately 92% and 8% respectively to the Group's annual revenue. You may refer to page 149 notes to the financial statements in Annual Report 2023 for segment revenue based on the geographical location of customers.

Q15. Which sector make profit and which segment making loss

A15. The oil and gas sector contributed approximately 50% of revenue, while all sectors were making profits during the financial year under review.

Q16. How many Shareholders attend this meeting, since not many, please provide some REFRESHMENT via e-wallet. TQ

A16. Based on the registration data provided by the Company's Share Registrar, a total of eighty-seven

1. shareholders/proxies had registered through the RPV facilities. Thank you and we may consider your suggestion in future. We reward our shareholders through dividend payment.

Q17. Me now at live meeting page, how to go to VOTING page?

A17. Our Poll Administrator will explain the voting procedures through the RPV facilities and the video to explain the voting instruction will be played before the voting session.

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WELLCALL HOLDINGS BERHAD

Registration No. 200501025213 (707346-W)

18th Annual General Meeting (23 February 2024)

Questions And Answers

Question Posted By Shareholders During AGM Session (cont'd)

Q18. Can the Board or Managing Director talks a bit about company direction in coming years, customers potential and their views on the market the company served.

A18. The Group actively invests in automation. Currently, the Group is in the process of expanding one of its plants to increase production capacity and improve production efficiency.

Q19. Our company's financial performance is very good. EPS has been climbing since 2017. The worst year was 2020 and but now we are moving forward positively. Thank you very much to our Management and staff for their dedication and commitment.

A19. We also thank for the full and continuous support from our Shareholders and Stakeholders. We will strive our best to have a better prospect and growth in future.

Q20. Good morning. 2023 was the best year for our Company. Thank you to all. Truly hardworking people in our Company. Full support for all the resolutions.

A20. Thank you very much for your support, the Board and employees of the company will continue to do our best in coming years. However, in order to have a full support for all the resolutions please go through the virtual voting poll.

Q21. I go back to email to search for voting page but only find JOIN WEBINAR, no voting button

A21. Our Poll Administrator will explain the voting procedures through the RPV facilities and the video to explain the voting instruction will be played before the voting session.

Q22. My favourable votes for all the resolutions. We are doing well financially. Our management is doing a great job. Thank you to all. I am confident our upward trajection will continue unabated.

A22. Appreciate and thank you.

Q23. May I know what is the percentage of raw materials being obtained locally?

A23. Approximately 50% obtained from local suppliers.

Q24. Good morning, our latest EPS is the best since 2017. Wonderful performance. Super job by our Management. Thank you to all. My favorable votes for the resolutions. No questions from me.

A24. Appreciate and thank you.

Q25. Will the company be able to increase dividend payout for the coming year?

A25. We maintain a dividend pay-out ratio of at least fifty percent (50%) of its net profit per year. In additional, we ensure that it meets the provisions of the Companies Act 2016 and satisfies the solvency test as well as the profit availability test prior to recommending a dividend declaration for approval.

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WELLCALL HOLDINGS BERHAD

Registration No. 200501025213 (707346-W)

18th Annual General Meeting (23 February 2024)

Questions And Answers

Question Posted By Shareholders During AGM Session (cont'd)

Q26. Any update on Trelleborg Wellcall S/B?

A26. The Management is still in the midst of reassessing and evaluating the feasibility on the going concern of the Associate Company, yet to be concluded.

Q27. Could you please elaborate on the answer for MSWG on operation, namely, semiautomated for extrusion and mandrel lines and fully automated for spiral lines?

A27. Semi-automated for extrusion and mandrel lines mean we synergize labour and machine to achieve efficiency and productivity and full automation means to maximise output, productivity and efficiencies as well as quality with less labour interference.

Q28. Is there any increase in freight cost to Europe?

A28. Due to Red Sea shipping crisis, we foresee that the freight cost will continue to increase.

Q29. On Trelleborg Wellcall Sdn Bhd, during last year's AGM, the Board stated that is in the midst of re-assessing and evaluating the feasibility of the going-concern of the Company. What is the result for the assessment?

A29. The Management is still in the midst of reassessing and evaluating the feasibility on the going concern of the Associate Company, yet to be concluded.

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