KENANGA ANNUAL REPORT 2017

GROUP BOARD RISK COMMITTEE (“GBRC”) 19 January 2107 28 March 2017 23 May 2107 25 July 2017 27 September 2017 25 October 2017 Attendance % Luk Wai Hong, William (1) ü ü ü ü ü ü 6 out of 6 100 Luigi Fortunato Ghirardello ü ü ü ü ü ü 6 out of 6 100 Ismail Harith Merican (2) ü ü ü X NA NA 3 out of 4 75 Jeremy Nasrulhaq (3) NA NA NA NA ü ü 2 out of 2 100 Notes: (1) Appointed as GBRC Chairman on 8 September 2017 (2) Ceased as GBRC member on 8 September 2017 (3) Appointed as GBRC member on 8 September 2017 Group Nomination and Remuneration Committee The NRC of KIBB comprises a majority of INEDs and is chaired by an INED who is not the Chairman of the Board. Details on the NRC’s composition, as well as its members’ attendance at the NRC meetings during the financial year ended 31 December 2017 are provided in Section B of the Corporate Governance Report (“ CG Report ”). The functions and responsibilities of the NRC are set out in the Terms of Reference of the NRC which is available on KIBB’s website at https://www.kenanga.com.my/NRC_TOR.pdf During the financial year ended 31 December 2017, the NRC had concluded, amongst others, the following key activities: • Reviewed the overall size and composition of the Board and the Board Committees in line with the relevant regulatory requirements; • Reviewed potential candidates background, experience and skills for appointments as new INEDs; • Interviewed potential candidates shortlisted for the position of INEDs; • Deliberated on the proposed appointments, re-appointments and re-elections of Directors within the Group; • Reviewed the re-appointment of members of Shariah Committee of KIBB and deliberated on their remuneration; • Deliberated on the renewal of contract of appointment of Senior Management personnel; • Reviewed the results of the assessment on the fitness and propriety of Directors and Senior Management; • Reviewed the results of Board performance evaluation for the financial year ended 31 December 2016; • Reviewed the training requirements for the Directors; • Reviewed the Directors’ remuneration; • Reviewed, deliberated and recommended the Performance Bonus for 2016 and Annual Salary Increment for 2017 for the Group; • Reviewed, deliberated and recommended the Employees’ Share Scheme; • Reviewed and recommended the annual Key Performance Indicators Setting and Performance Appraisals for Group Managing Director (“ GMD ”) and Senior Management, as well as for the Direct Reports of the Board and Board Committees; and • Reviewed and recommended the proposed enhancement to staff benefits. Kenanga Investment Bank Berhad 40 corporate governance overview statement