[Details of BAUTO (5248) -AGM]

1)
Q: It was mentioned in the annual report that Mazda Motor Corporation (MMC) had the highest market share and sales volume in 2018. What is the market share in 2018 compared to 2017?

A: It was 1.7% in 2017 and 2.7% in 2018.

2)
Q: Does management expect a higher market share in 2019?

A: Management expects the situation in 2019 to be more challenging, but management is still optimistic that the Mazda CX-8, Mazda CX-30 and the new and popular Mazda CX-5 launched in Malaysia in Q4 2019— With 2.5L Turbo, we can overcome the challenges ahead

3)
Q: How much is the sales volume overseas? What's the outlook for this?

A: Our Philippines subsidiary (BAP) sold 5,107 and 3,581 units in 2017 and 2018, respectively.

Sales in the Philippines were affected by the local TRAIN law implemented in January 2018. As a result, consumers need pay excise taxes to buy cars, and car demand has been reduced. However, this TRAIN law brings benefits to the commercial vehicle industry because these commercial vehicles are tax-free. BAP will use this to launch the Mazda BT-50 next year. After strengthening BAP brand, dealer support and newly launched model, BAP's turnover and profit are expected to improve.

4)
Q: Is the company's current number of branches and dealer centers sufficient for sales and after-sales services? What's next for this?

A: We believe that the current number of branches and dealer centers is sufficient to meet the current market demand in Malaysia. However, the Group will continue to strengthen the dealer network and our brand. At the same time, we will seize the opportunity to expand our coverage, especially in some small cities, and increase our car sales.

5)
Q: What is the current production capacity and utilization rate of Mazda Malaysia Sdn Bhd (MMSB) at the Inokom plant?

A: MMSB has a production capacity of 20,000 vehicles per year at the Inokom plant and can add another 10,000 vehicles per year if needed. The utilization rate from July 1, 2018 to June 30, 2019 was approximately 22,000 vehicles.

6)
Q: What is the current production capacity and utilization rate of Inokom?

A: Inokom Corporation Sdn Bhd ’s parts factory currently has a production capacity of 40,000 units per year. Its usage rate is about 37,000 vehicles.

7)
Q: Will there be more dividends in the future?

A: The dividend payout ratio depends on the company's profitability. In the coming year, we hope to give at least 70 to 80% of our profits as dividends, and we will continue to pay considerable dividends based on the company's earnings.

8)
Q: Has Mazda Malaysia Sdn Bhd distributed dividends to Bermaz?

A: They have a lot of cash, but they would rather reduce their own internal cash to fund more of our projects and expansion costs, rather than on Bermaz Auto's accounts. Any expansion, they are spending, not us, so that we can pay dividends to shareholders.

9)
Q: Is Mazda Malaysia Sdn Bhd currently raising funds with shareholders?

A: Our initial investment in Mazda Malaysia Sdn Bhd was RM 85 million, representing 30% of its shares. No new funding is currently planned.