MegaChem Limited

Management Online Q&A With Investors

Dear Investors & Stakeholders

Thank you very much for your questions and the opportunities to respond to them.

We hope you have a better understanding of our business through this online exchange.

Your questions are reposted in blue followed by our replies in black.

Best Regards,
The Management Team
MegaChem Limited

1. Dear William Tan, you wrote:

Will your sustainability-linked financing from UOB be affected by the fire incident?

The sustainability-linked Financing from UOB sets certain sustainability targets. If the targets are met, there will be interest rate savings. Conversely if the targets are not met, there will be no interest rate savings. Based on our preliminary assessment, it is probable that the targets will not be met because of the fire incident.

2. Dear Jennifer Kok, you wrote:

The fire incident, will it affect the insurance premium you pay next year?

Our insurer will make an assessment at the time of our insurance renewal. We believe the insurance premium is likely to increase.

3. Dear Brandon Ng, you wrote:

How will you fund the rebuilding of your warehouse?

The costing for the rebuilding has not been finalised yet. Based on our own estimate, the funding is likely to come from a mix of internal funds, insurance proceeds and bank borrowing.

4. Dear Douglas Neo, you wrote:

Will you increase the proportion of inventory stored in third party warehouses after the fire incident?

In our plan for the rebuilding, we hope to increase our own warehousing space which will allow us to reduce reliance on third party warehouse while still maintaining multiple stockholding points as part of our risk management approach.

Dear Investors & Stakeholders,

Thank you for all your questions and your interest in MegaChem Limited. We have come to the end of this Q&A session.

We have enjoyed the session and have learnt much from your questions. We hope that through this Q&A, you have gained better insights to our Company and our operations.

Best Regards,
The Management Team
MegaChem Limited