2016 3-MONTH CONTRACT SALES PRESENTATION May 2016
DISCLAIMER These materials may contain projections and forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. Readers are cautioned not to place undue reliance on these forward-looking statements, which involve inherent risks, uncertainties and assumptions. No assurance can be given that actual results will be consistent with these forward- looking statements. The Company assumes no obligation to update or revise any forward-looking statements. These materials are for information purposes only and do not constitute or form part of any invitation or offer to acquire, purchase or subscribe for any securities or the provision of any investment advice, and none of them shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. These materials do not constitute a recommendation regarding the securities of the Company. 2
CONTRACT SALES PERFORMANCE HIGHLIGHT USD Million RM Million 3 months ended March 31 2015 2016 Change 2015 2016 Change (%) (%) Contract sales 40.2 34.2 (14.8) 145.7 143.5 (1.5) (“Q3”) The above amounts denominated in RM have been translated into USD at the exchange rates of 4.1906 and 3.6224 for 3 months ended 31 March 2016 (“ 1Q16 ”) and 3 months ended 2015 (“ 1Q15 ”) respectively. The percentage (%) figures stated in this presentation slides are consistent with our announcement to The Stock Exchange of Hong Kong Limited on May 26, 2016. 3
CONTRACT SALES FOR 3 MONTHS ENDED MARCH 31 USD RM Growth rate : (1.5%) 160 Amount (Million) 140 120 100 80 145.7 143.5 Growth rate : (14.8%) 60 40 20 40.2 34.2 0 2015 2016 2015 2016 The Group’s contract sales decreased by 14.8% quarter-over-quarter (“ QoQ ”) in USD terms but remained relatively stable in RM terms with a marginal reduction of 1.5% to RM143.5 million. The decrease was primarily due to lower sales from burial plots and funeral services. Lagging in USD terms due to the strengthening of USD against RM. Contract Sales (USD ‘m) Contract Sales (RM ‘m) 4
CONTRACT SALES BY BUSINESS SEGMENT For 3 months ended March 31 USD RM Growth rate: (1.5 %) 50 180 45 160 40.2 145.7 143.5 5.0 1.4 40 7.9 140 34.2 35 28.2 7.8 26.6 1.9 120 30 (USD 'm) 6.3 (RM 'm) 5.9 21.4 100 24.0 25 5.7 80 20 45.8 12.6 60 52.0 15 12.4 40 10 12.5 45.3 20 5 33.0 7.9 0 0 2015 2016 2015 2016 Contract sales from burial plots decreased 36.9% in USD terms, and 27.0% in RM terms QoQ primarily due to lower sales from Semenyih and Bukit Mertajam, in Malaysia, and Indonesia. Niche sales increased by 13.4% in RM terms QoQ, primarily attributed to sales growth from Singapore, and Nirvana Center Kuala Lumpur and Penang Island in Malaysia. Lower sales in USD terms was primarily due to the strengthening of USD against RM. Increase in contract sales from tomb design and construction and others in RM terms was primarily due to higher sales from Semenyih, Malaysia. Contract sales from funeral services decreased 5.8% in RM terms mainly due to lower sales from pre-need funeral services. Burial plots Niches Tomb design and construction services Funeral services Others 5
BUSINESS SEGMENT 3 months ended March 31 2015 2016 By contract sales By contract sales Others Others Funeral 3.4% 5.5% Funeral services services 19.4% 18.5% Burial plots 23.0% Burial plots 31.1% Tomb design and Tomb design construction and 14.7% construction Niches Niches 16.8% 36.2% 31.4% 6
CONTRACT SALES BREAKDOWN 3 months ended March 31 2016 2015 As-need By need type 19.8% As-need 18.5% Pre-need Pre-need 80.2% 81.5% Indonesia Thailand By geography 5.2% 1.1% Indonesia 6.3% Hong Kong Singapore Singapore <0.1% 13.8% 16.5% Malaysia Malaysia 79.9% 77.2% The proportion of as-need and pre-need sales contribution remains relatively stable QoQ. The decrease in pre- need contract sales in RM terms was primarily due to lower contract sales for pre-need burial plot from Semenyih, Malaysia. Ex-Malaysia sales contribution increased by 2.7 percentage points QoQ to 22.8% in 1Q16. Singapore contributed the highest contract sales growth of 17.8% in RM terms QoQ, while Thailand recorded contract sales of RM1.5 7 million in 1Q16 following its sales launch in May 2015.
BURIAL SERVICES Burial plots Offer single, double, family-sized and garden lot burial plots in our cemeteries 3 months ended March 31 USD RM 20 700 2,500 2,168 598 2,235 60 533 600 2,000 50 15 45.3 500 12.5 USD’ m RM’ m 40 1,500 33.0 400 10 7.9 30 300 1,000 20 200 5 500 10 100 0 0 0 0 2015 2016 2015 2016 20,879 14,774 20,879 14,774 Sq.m. sold The higher average sales prices (“ ASP ”) for burial plots in RM terms was primarily due to the increase in sales prices for Semenyih, Malaysia. Excluding Thailand, ASP per square meter for burial plots increased by 8.6% in RM terms QoQ. Lower ASP in USD terms was due to the strengthening of USD against RM. Contract Sales (USD ‘m) Per sq. m ASP (RM ) Contract Sales (RM ‘m) Per sq. m ASP (USD) Per unit ASP (USD '000) Per unit ASP (RM '000) 8
BURIAL SERVICES Niches 3 months ended March 31 USD RM 20 7 80 25 6.3 22.9 22.6 18 70 6 5.4 16 20 60 5 14 12.6 12.4 52.0 45.8 50 RM’ m 15 12 USD’ m 4 40 10 3 10 8 30 6 2 20 5 4 10 1 2 0 0 0 0 2015 2016 2015 2016 Unit sold 1,999 2,304 1,999 2,304 ASP for niches remained relatively stable with a slight reduction of 1.6% QoQ in RM terms, mainly due to the more competitively priced niches launched in Penang Island, Malaysia. Lower ASP in USD terms was due to the strengthening of USD against RM. Contract Sales (USD ‘m) Per sq. m ASP (RM ) Contract Sales (RM ‘m) Per sq. m ASP (USD) Per unit ASP (USD '000) Per unit ASP (RM '000) 9
BURIAL SERVICES Tomb design and construction services Offer standard and personalized tomb design and construction packages 3 months ended March 31 USD RM 800 14 70 3,500 623 12 60 3,000 600 2,609 USD’ m 10 50 2,500 445 RM’ m 8 40 2,000 1,611 400 5.9 5.7 30 1,500 6 24.0 21.4 20 1,000 4 200 10 500 2 0 0 0 0 2015 2016 2015 2016 Sq.m. sold 9,202 13,251 9,202 13,251 ASP for tomb design and construction increased by 61.9% QoQ in RM terms, primarily due to the increase in sales prices for Semenyih, Malaysia and Jakarta, Indonesia. Lower ASP in USD terms was due to the strengthening of USD against RM. Contract Sales (USD ‘m) Contract Sales (RM ‘m) Per unit ASP (USD '000) Per unit ASP (RM '000) Per sq. m ASP (USD) Per sq. m ASP (RM ) 10
FUNERAL SERVICES We provide integrated premium funeral services that include funeral consultation and planning, transportation, embalming, cosmetology and preparation for viewing, cremation and funeral ceremonies Contract sales and ASP per funeral services 3 months ended March 31 RM USD 40 25 10 6 5.5 20.1 19.8 4.8 5 20 7.8 8 30 28.2 26.6 USD’ m RM’ m 6.3 4 15 6 20 3 10 4 2 10 5 2 1 0 0 0 0 2015 2016 2015 2016 1,430 1,327 1,430 1,327 Cases sold ASP for funeral services remained relatively stable with a slight increase of 1.5% in RM terms, predominantly due to higher sales price for pre-need funeral services sold. Lower ASP in USD terms was due to the strengthening of USD against RM. Contract Sales (USD ‘m) Contract Sales (RM ‘m) Per unit ASP (USD '000) Per unit ASP (RM '000) Per sq. m ASP (USD) Per sq. m ASP (RM ) 11
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