$PBA / 5041 (PBA HOLDINGS BHD) 2024 AGM

1. PBA projected investment for 8 WCP 2030 projects is RM1.184 billion and PBA will not directly fund all the WCP 2030 projects. The first 2 projects under WCP 2030 were implemented under direct funding. The DAF module at the Bukit Panchor Water Treatment Plant has been commissioned. Package 12A of the Sungai Dua Water Treatment Plant is due for commissioning in September 2024. There are 6 other WCP 2030 projects that are scheduled for completion in the timeframe from 2025 to 2028. Some of these projects will be undertaken under direct funding by PBA. PBA will have the options of applying for bank loans or leasing agreements with Pengurusan Aset Air Berhad (PAAB) for the other projects. The shortfall in the company's cash flow will be funded via internally generated funds or external funding and has not been finalised yet.

2. The package 12A of the Sungai Dua Water Treatment Plant is expected to be completed by September 2024 instead of July 2024 as scheduled. The slightly delay was due to the shortage of construction materials and manpower. With the completion of the said project, it will definitely have a positive impact on water supply services in Penang.

3. The projected water demand for years 2024 and 2025 is 1,402 MLD and the total water treatment capacity after the completion of the Bukit Panchor DAF module (10 MLD) in 2023 and package 12A, Sungai Dua WTP (114 MLD) will be 1,726 MLD.

4. To realise the full benefits of Package 12A, PBA is also expediting the laying of new pipelines to channel more water from Sungai Dua to SPS and DBD.

5. The major pipeline projects scheduled for implementation in 2024 include:
(a) 13km of a 1.8m pipeline from Sungai Dua to Butterworth in Seberang Perai
(b) 3.9km of a 1.8m pipeline from the Macallum Area to Bukit Dumbar on Penang Island
(c) the 1.35m River-Crossing Pipeline at Sungai Perai

6. The NRW percentage formula is: "system input - billed consumption / system input * 100". The formula does not take into account revenue, land area or pipeline length. It simply shows the percentage of water loss.

7. PBA pipeline replacement projects are primarily preventive maintenance projects. The objectives are to replacing leaking pipelines and minimise the risks of outdated pipelines bursting. Accordingly, pipeline replacement projects will reduce NRW percentage. So PBA is working to improve Penang's NRW percentage.

8. 23% NRW is the target set under the business plan for 2023 - 2026, which was submitted to SPAN earlier. However, due to the high water demand in Penang State in recent year, PBA had to pump treated water at high pressure to meet the demand. This caused a higher NRW than expected, therefore PBA had to review and revise the NRW target for this year to 28.6% and submit it to SPAN for approval.

9. PBA is still proactively looking into NRW management and to maintain its status as one of the lowest NRW water operators in Malaysia.

10. Non-Revenue Water monitoring is done on a monthly basis and the actual consumption of NRW percentage is done yearly. The average NRW as of April 2024 was 28.4%.

11. PBA did not receive any subsidy from the government whether state or federal.

12. As PBA profitability rises and share price increases, PBA will try to maintain the dividend yield according to the FD rates of the market.

13. PBA will carry out the projects such as Mengkuang project treatment plant, Sg Muda water treatment plant, and Sg Kerian water treatment plant for FY2025 and beyond to prevent putting all the eggs in one basket.