WIDAD GROUP BERHAD ("WIDAD" OR "COMPANY") (FORMERLY KNOWN AS IDEAL JACOBS

(MALAYSIA) CORPORATION BHD)

LETTER OF AWARD AS SUB-CONTRACTOR FOR THE DESIGN & BUILD OF THE NEW SOLID
WASTE TRANSFER STATION AT TAMAN BERINGIN, JINJANG UTARA, KEPONG, KUALA
LUMPUR

1. INTRODUCTION

The Board of Directors of Widad is pleased to announce that its wholly-owned subsidiary,
Widad Builders Sdn. Bhd (“WBSB”) had on 25 September 2019 accepted the Letter of Award
(“LOA”) from Bumi Segar Indah Sdn. Bhd. (“BSISB”) appointing WBSB as the sub-contractor
to design & build the new solid waste transfer station at Taman Beringin, Jinjang Utara, Kepong,
Kuala Lumpur (“the Project”).

2. VALUE AND DURATION OF THE CONTRACT, LIQUIDATED AND ASCERTAINED

DAMAGES (“LAD”)

The total contract value of the Project shall be RM120,033,900.00 only. The price is deemed to
include the cost of all works necessary for the timely and satisfactory completion of the works
in its entirely.

The contract period for the Project shall be from the date of Letter of Award until 19 April 2025.

Should WBSB fail to complete the Project by the agreed time period or any extended time
granted, the amount of RM24,008.21 per calendar day as LAD for the period during which the
Project remain incomplete shall be imposed. The LAD amount shall be deducted from any
money due or become due to WBSB.

3. FINANCIAL EFFECTS

The Project will not have any impact on the issued share capital and substantial shareholders’
shareholdings of Widad and is expected to contribute positively to the earnings and net assets
of Widad and its group of companies (“Widad Group” or the “Group”) over the duration of the
Project.

Funding for the Project will be via internally generated funds and external borrowings.

4. RISK FACTOR

The Project is subjected to normal construction risk such as materials price fluctuation,
subcontractors’ performance and fluctuation in interest rate. Based on Widad’s past
experiences and expertise in undertaking construction projects, the risks can be mitigated.

5. APPROVAL REQUIRED

The Project, being part of the ordinary course of business of Widad, is conditional upon obtaining
approval of Development Order from the relevant authorities.

Shareholders’ approval is not required.

6. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

None of the directors, major shareholders of Widad and/or persons connected with them have
any interest, whether direct or indirect, in the Project.
7. STATEMENT BY DIRECTORS

The Board of Directors of Widad is of the opinion that the Project is in the best interests of
Widad Group.

This announcement is dated 25 September 2019.