Serba Dinamik Berhad : 5th AGM Presentation

Presenter:

Dato' Dr. Ir. Ts. Mohd Abdul Karim Abdullah

Managing Director / Group Chief Executive Officer of Serba Dinamik Holdings Berhad

SERBA DINAMIK HOLDINGS BHD IN REVIEW

1. The unprecedented pandemic COVID-19 has affected the global business operations in overall.
2. Due to challenges in the Movement Control Order (MCO), the group has announced the change of its Financial Year End from 31st December 2020 to 30th June 2021.
3. Despite the challenging and rough year, the Group are still able to achieve astonishing performance for the Financial Period Ended 30th June 2021 with RM8.61 billion of revenue.
4. The board has taken the necessary steps to announce a deviation between unaudited results and audited results with more than 10% of the Group's profit due to the following reasons:
5. • Impairment of trade receivables made by subsidiaries amounting RM395 million which was underprovided during the release of FPE 30th June 2021.
   • The impairment was made in view of limitation addressed by Nexia SSY PLT in its auditor's opinion in obtaining audit evidence on trade receivables due to time limitations and occurrence of additional significant events.
   • Inventory Write Down of RM552 million due to current circumstances in which it has resulted to disruption and/or termination of several projects undertaken by the Group or by the customers.

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SERBA DINAMIK HOLDINGS BHD IN REVIEW

In related to company's external auditors expressing a disclaimer of opinion in the Independent Auditors' Report for the FPE2021 ended 30th June 2021, the Board wishes to inform on the following:

• The Group will formulate a comprehensive regularisation plan for submission to Bursa Securities at the appropriate time.
• The Group is appointing a Principal Advisor to advise the Board and management on its regularisation plan.
• The Group will implement a cost saving and optimisation plans in order to remain competitive in the current business environment.
• The Group will closely engage the secured lenders and will discuss on possible options to find an amicable solution for the debt rearrangement.

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DISCLAIMER

This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other developments or companies, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events.

The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither Serba Dinamik Holdings Berhad ("SDHB") nor any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation.

The past performance of SDHB is not indicative of the future performance of SDHB.

The value of shares in SDHB ("Shares") and the income derived from them may fall as well as rise. Shares are not obligations of, deposits in, or guaranteed by, SDHB or any of its affiliates. An investment in shares is subject to investment risks, including the possible loss of the principal amount invested.

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2021 OVERVIEW