CORPORATE PRESENTATION March 2016 DISCLAIMER This document is for - - PowerPoint PPT Presentation

CORPORATE PRESENTATION

March 2016

DISCLAIMER

2

This document is for information purposes only without any binding effect; in case of any inaccuracies, incompleteness or inconsistency with other documents, only the Company’s latest issued annual or interim report for detailed financials shall prevail and shall be deemed to be the only official document. The financial information and certain other information presented in a number of tables have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column. In addition, certain percentages presented in the tables reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers.

AGENDA

SECTION 1: Company Overview SECTION 2: Investment Highlights APPENDIX A: Industry Overview SECTION 4: Strategies SECTION 3: Financial Summary

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Page 4 Page 8 Page 21 Page 34 Page 36

COMPANY OVERVIEW

Section 1

THE LARGEST INTEGRATED DEATH CARE SERVICE PROVIDER IN ASIA

Largest provider in terms of contract sales, revenue and land bank¹ in Asia

The largest integrated death care service provider in Asia in terms of contract sales, revenue and land bank¹, offering products and services that cover the entire death care services industry value chain

Offer integrated premium death care services through a network of 12 cemeteries, 14 columbarium facilities and two funeral homes in Malaysia, Singapore, Indonesia, Thailand and China Strategically target the premium segment and enjoy significant pricing premium The most recognized brand in the death care services industry in Malaysia and one of the most recognized brands in Singapore³ Pioneer in the pre-need market in Asia, having been offering pre-need death care services since 1990 Adjusted profit for the period attributable to

• wners of the Company4 CAGR of 25.4% from

2011 –2015 Expanded to Thailand, China and Vietnam in 2015

    

Nirvana's market ranking and market share ²



5

Country 2013 Market Ranking 2013 Market Share

Malaysia 31.1% Singapore 34.8% Indonesia 1.2%

Rank Provider Countries of

• peration

2013 Revenue (US$m) 2013 Contract sales (US$m) 2013 Land Bank¹ (sq.m.)

Nirvana 139.7 182.6 2.0m

Source: Frost & Sullivan Source: Frost & Sullivan

1 1 2

Notes: 1 Defined as land owned or managed that is intended for sale as burial plots 2 Represents overall death care market in Malaysia, and burial services market in Singapore and Indonesia 3 According to the Nielsen Report, based on a survey on the death care services industry in Singapore and Malaysia among the ethnic Chinese population aged 40 or above 4 Adjusted to exclude (a)USD41.5 million (equivalent to RM162.0 million) of net foreign exchange gain in 2015, (b)USD3.3 million (equivalent to RM10.7 million) in share-based payment expenses in 2014, (c) USD5.3 million (equivalent to RM17.3 million) Listing expenses in 2014, and (d) USD0.3 million (equivalent to RM1.1 million) of other expenses relating to the Listing in 2014.

1

DIVERSIFIED GEOGRAPHIC FOOTPRINT

6

Existing cemeteries and columbarium facilities Sites under development Existing columbarium facilities Future new sites Existing funeral homes

Cemeteries – 9 in Malaysia, 1 each in Indonesia, Thailand and China Columbarium facilities – 11 in Malaysia, 1 each in Singapore, Indonesia and China Funeral homes in Malaysia On-site crematoria Future cemetery sites – 1 in Malaysia, 2 in Indonesia and 1 in Vietnam New columbarium under development New funeral homes under development

14 12 2 6 4

Shah Alam Pagoh Kuala Lumpur Johor Bahru Kota Kinabalu Sibu Ulu Tiram Kulai Segamat Semenyih Sungai Petani Bukit Mertajam Penang Island Singapore Tangerang (near Jakarta), Indonesia Banbueng (near Bangkok), Thailand Dong Nai Province, Vietnam Huizhou, China Singapore Karawang (near Jakarta), Indonesia

Market leader in each of Malaysia, Singapore and Indonesia and penetrated into Thailand, China and Vietnam in 2015

2 2

Medan Klang

KEY MILE STONES

We have achieved significant business milestones since inception

2015

• Commenced sale in

Thailand and Hong Kong, China.

• Expanded into

(1) Dong Nai, Vietnam (2) Medan, Indonesia (3) Klang, Malaysia Bought tomb design and construction business

• Commenced sale at

Nirvana Center Kuala Lumpur Columbarium 2009 Commenced

• perations in

Singapore 2003 Commenced

• perations in

Karawang (near Jakarta), Indonesia 2012 Commenced sale at the Penang Island columbarium in collaboration with Kek Lok Si 2013 Acquired two existing cemeteries at Bukit Mertajam and Sungai Petani 2014 1990 1997 2000 2003 2009 2010 2012 2013 1997 Expanded into East Malaysia; commenced

• perations at

Kota Kinabalu, Malaysia 1990 Founded in 1990 by group CEO Dato’ Kong 2013 US$183.3m Pre-IPO investments by Orchid Asia and AIF Capital 2010 Privatized and delisted from Bursa Malaysia 2000 Listed on Bursa Malaysia

7

1990 Commenced development

• f first

cemetery at Semenyih

Founding, fundraising and investments Key geographical expansion

2015 2014 Listed on the Hong Kong stock exchange

INVESTMENT HIGHLIGHTS

Section 3

INVESTMENT HIGHLIGHTS

The largest integrated death care service provider in Asia with widely recognized brands

1

Strategically targeting the premium segment of the death care services market and a pioneer in the highly attractive pre-need market in Asia

2

Extensive operational know-how enabling us to replicate our success in new markets

3

Comprehensive and personalized products and services that cover the entire death care services value chain

4

Highly effective and scalable sales and marketing model

5

Experienced, stable and professional management team

7

High profit margins with strong visibility of future revenue and cash flows

6

9

THE LARGEST INTEGRATED DEATH CARE SERVICE PROVIDER IN ASIA WITH WIDELY RECOGNIZED BRANDS

The largest integrated death care service provider in Asia in terms of contract sales, revenue and land bank in 2013. Our brand, Nirvana and 富貴, are among the most recognized brands in our home markets

Clear market leader

Malaysia Singapore Indonesia

Source: Frost & Sullivan and Nielsen

Our scale and brand recognition solidify our competitive edge and enable us to enjoy sustainable growth

1

The highest awareness level among death care service providers in Malaysia. According to the Nielsen Report,

 91.1% of respondents were aware of our brands  46.4% of respondents identified our brands as the

first that came to their mind In Singapore, despite only commencing operations in 2009

 2nd highest awareness level among non-government

columbarium operators

 66.0% of respondents were aware of our brands

The most recognized brand in the death care services industry in Malaysia and one of the most recognized brands in Singapore in terms of  Professionalism  Trustworthiness  Quality of services and products  Facility maintenance

Most widely recognized brand ¹

1 1 2

 31.1% overall death care services market

share²

 5.5x larger than the #2 provider²

 Integrated death care services including burial and funeral services

 34.8% burial services market share²  5.0x larger than the #2 provider²

 The only commercial columbarium operator

 1.2% burial services market share²

 One of the few private burial service providers

Notes: 1 According to the Nielsen Report, based on a survey on the death care services industry in Singapore and Malaysia among the ethnic Chinese population aged 40 or above 2 Data represent market share in 2013 10

THE LARGEST INTEGRATED DEATH CARE SERVICE PROVIDER IN ASIA WITH WIDELY RECOGNIZED BRANDS

Our market leadership and brand recognition contribute to our rapid business expansion and significant economies of scale. Our success has also been recognized by authoritative industry associations

2012 Asia’s Outstanding Brand in Funeral Services Industry Asia’s Outstanding Award in Multi National Expansion 2013 Corporate Social Responsibility Award Marketing Strategy Award 2014 Malaysia Landscape Architecture Award by the Institute of Landscape Architects Malaysia (Ilam) 2015 Best Small-Cap Company in Hong Kong by FinanceAsia The Listed Enterprise Excellence Awards 2015 by Capital Weekly Hong Kong

Selected awards received

1

Economies of scale and business expansion

Cost and expenses as percentage of revenue…

11

34.4% 31.7% 30.4% 29.5% 24.3% 30.0% 25.7% 21.8% 22.8% 23.5% 2011 2012 2013 2014 2015 (%)

Cost of sales and services Selling and Distribution Expenses

STRATEGICALLY TARGETING THE PREMIUM SEGMENT AND PRE-NEED MARKET

12

Strategically target the premium segment by offering premium quality and customizable products and services

Leading provider in the premium segment

Premium segment encompasses mainly the ethnic Chinese populations, who generally allocate higher budgets on death care services According to the Nielsen Report, in each of Malaysia and Singapore, we are considered as a provider:  with more professionally managed facilities 

• f better product and service quality

 whose facilities are well managed  with good customer services

2

ASP for niches at Singapore facility: 30+ times higher than government columbarium facilities 2 times higher than columbarium facilities

• perated by NGOs

The average sales price ("ASP") for a burial plot in our Malaysia facilities: 3+ times higher than cemeteries operated by NGOs 100% higher than other commercial cemeteries ASP for a burial plot in our Indonesia facility: 20+ times higher than public cemeteries 100% higher than other commercial providers

Sources: Frost & Sullivan and Nielsen

Our focus on the premium segments, our premium product offerings and our strong brand recognition allow us to command a significant pricing premium

STRATEGICALLY TARGETING THE PREMIUM SEGMENT AND PRE-NEED MARKET

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Our focus on the pre-need market allows us to serve a large and underpenetrated customer base

A pioneer in the pre-need market

Began selling pre-need burial products in 1990 and pre-need funeral services in 2000 Strategically target ethnic Chinese population over 40 years of age: a segment of the population that is expected to grow significantly Ethnic Chinese population aged 40 or above (million) The penetration rate¹ of pre-need services is estimated to be 5.8%, 1.9% and 0.8% in Malaysia, Singapore and Indonesia, respectively 1% increase in penetration rate will generate US$373.7m, US$113.0m and US$368.4m of pre- need revenue in Malaysia, Singapore and Indonesia, respectively

2

Note: 1 Penetration rate in 2013 among the target population for pre-need death care services, being defined as the ethnic Chinese population over 40 years of age

Our focus on the pre-need market enables us to:  Serve a larger and underpenetrated customer base  Introduce our brands, products and services to potential customers years before competitors  More effectively cross-sell as customers are under less time pressure  Command large market share within this segment Pre-need market share in 2013 Malaysia Singapore Indonesia  Grow our contract sales from pre-need products and services rapidly at a CAGR of 15.2% from 2011 to 2015 in RM terms 56% 79% 36% Nirvana's market share Other providers' market share 1.9 1.3 4.6 2.2 1.5 5.6 Malaysia Singapore Indonesia +16% +15% +22% 2013 2018 (estimate)

Source: Frost & Sullivan

EXTENSIVE OPERATIONAL KNOW-HOW ENABLING US TO REPLICATE OUR SUCCESS IN NEW MARKET

We have a successful track record of identifying attractive expansion opportunities and replicating our proven business model and best practices

14

3

Leverage expertise in designing and developing death care facilities Replicate sales agency model

Site selection criteria

Expected economic returns Demographic composition Sizable population with higher budget for death care services Regulatory environment Availability of adjacent land for future expansions Competition environment Extensive expertise in identifying high potential locations

     

Seek to achieve premium pricing

1

Cemetery in Malaysia

12 14 2

Cemeteries in Malaysia, Indonesia , Thailand and China Columbarium facilities in Malaysia, Singapore, Indonesia and China Funeral homes in Malaysia

1990 December 2015

Track record of replicating our success Proven development strategies

With this strong track record, we are confident of replicating our proven business model into our new expanded markets including Thailand, Vietnam, Hong Kong and China

1 2 3 5

Begin selling pre-need burial products and generating cash flow while construction is ongoing

4

EXTENSIVE OPERATIONAL KNOW-HOW ENABLING US TO REPLICATE OUR SUCCESS IN NEW MARKET

15

3

– – –

Singapore Columbarium — Premium products and services capturing unmet demand Acquired in 2008 and commenced operations in 2009 Focused on offering personalized niches targeting the unmet demand; enjoy significant price premium Contract sales increased significantly in the first full year under Nirvana

0.9 14.1 2007 (before acquisition) 2010 (1st full year

• f management)

>15x increase

Contract sales (US$m)

Penang Island Columbarium — Successful collaboration with reputable partner Began collaboration with Kek Lok Si temple in 2011 Designed, built and operated the columbarium under Nirvana's standards and best practices Replicated sales agency model and rapidly built up sales channel

4.3 14.9 2012 2013 + 86%

Contract sales (US$m)

Indonesia Cemetery and Columbarium — Profit generation since 2006 Commenced operations in 2003; recording profits in each year since 2006 ASP per square meter for burial plots increased at a CAGR of 18.1% from 2008 - 2013 Continued to record solid growth from 2011 - 2013

7.5 9.4 2011 2013 CAGR = 11.7%

Revenue (US$m)

Bukit Mertajam and Sungai Petani Cemeteries — Rapid contract sales ramp-up post acquisitions Acquired in August 2013 Under Nirvana, aggregate contract sales from these cemeteries increased 5 fold year on year from 1st half 2013

1.6 9.2 1H2013 (before acquistion) 1H2014 (after acquisition) >5x increase

Contract sales (US$m)

Selected case studies

Acquisitions Greenfield Developments

COMPREHENSIVE AND PERSONALIZED PRODUCT OFFERINGS

One of a few death care service providers in Asia that can offer fully integrated death care solutions to customers

Burial plots Niches Tomb design and construction Other ancillary products Funeral services

One stop shop solutions

Advantage #1: Differentiation from competitors who offer less comprehensive or personalized products Bereaved families prefer dealing with fewer service providers to ensure seamless, worry-free experience Offer comprehensive and personalized products and services Able to cater to a broader market and command pricing premium Advantage #3: Ability to cross-sell Established a sizeable existing customer base to cross sell, such as More than 33,000 pre-need burial plots that have yet to build tombs More than 175,000 pre-need burial plots and niches customers have yet to purchase our funeral services packages¹ More than 10,000 pre-need funeral services customers have not purchased our burial plots or niches¹

16

4

Product and Service Offerings

Advantage #2: Product variety creates additional revenue

• pportunities and increases revenue per customer

Comprehensive packages and service offerings provide

• ptions for personalization

Able to derive additional revenue from customers who are willing to pay for optional, higher-quality and more personalized services

HIGHLY EFFECTIVE AND SCALABLE SALES AND MARKETING MODEL

Current model in placed since 1998 Markets primarily through a network of exclusive third-party sales agents; agents are not employees No fixed salaries; agents are paid commissions and incentives only Commissions are paid based on actual collection of customer payments No fixed salary expenses compared to in-house sales force Aligns our interests and our sales agents’ and incentivizes sales agents to follow through on payment collections Encourages experienced sales agents to proactively train and supervise new sales agents Provides flexibility to amend commission rate and adjust rates to react to market changes and support promotion initiatives on real-time basis

17

The largest sales force of any death care operator in Malaysia and Singapore, and one of the largest sales force of any death care operation in Indonesia

Unique and effective sales agency model Significant cost advantages, scalability and flexibility

5

Unique sales and marketing model that aligns our interests and our sales agents’ to maximize effectiveness, profitability and flexibility of our sales and marketing efforts

HIGH PROFIT MARGINS WITH STRONG VISIBILITY OF FUTURE REVENUE AND CASH FLOWS

18

Capitalizing on our premium product and service offerings, business scale and brand recognition, we enjoy significant pricing premium and increasing profit margin

6

Economies of scale Extensive industry and

• perational

experience Premium product and service quality Clear market leadership Strong brand recognition Increasing profit margins Low fixed salary

• verhead

76.7 84.8 97.2 116.4 112.4 65.6% 68.3% 69.6% 70.5% 75.7% 30% 40% 50% 60% 70% 80% 40 80 120 160 2011 2012 2013 2014 2015 Gross Profit Gross Margin

Our successful business model and economies of scale have reduced costs and operating expenses, resulting in increasing profitability: Gross profit and gross margin (US$m, %) Adjusted profit for the period attributable to owners of the Company (US$m, %)

19.5 30.7 34.7 44.6 45.3 16.7% 24.7.9% 24.8% 27.0% 30.5% 0% 10% 20% 30% 20 40 60 2011 2012 2013 2014 2015 Adjusted profit Adjusted profit margin

HIGH PROFIT MARGINS WITH STRONG VISIBILITY OF FUTURE REVENUE AND CASH FLOWS

19

Offer installment payment options: up to 48 months Only recognize revenue after 35% of sales price has been collected Insignificant default rate: net impairment loss on trade receivable representing only less than 1% of trade receivables Combination of time lag and low default rate creates a stable and predictable future revenue and cash flow

Pre-need burial plots and niches

Payments of pre-need funeral services packages are recorded as deferred pre-need funeral contract revenue Only recognize revenue when the services are rendered As of December 31, 2015, aggregate contract sum of unexercised pre-need funeral contracts was US$89.0 million

Pre-need funeral services

The exclusive provider of tomb design and construction services for our burial plots customers More than 33,000 sold burial plots on a pre-need basis with no tomb arrangements Sale of tomb design and construction services in connection with these plots is expected to generate significant revenue in the future

Cross-selling of tomb design and construction services

1 2 3

The offering of both pre-need and as-need death care services allows us to expand our sources of revenue and affords us strong visibility of our future revenue and cash flow Our unique pre-need business model and our exclusivity to provide tomb design and construction services to our burial plot customers allow us to lock in significant future revenue streams upfront

6

EXPERIENCED, STABLE AND PROFESSIONAL MANAGEMENT TEAM

Strong and dedicated management team of experienced professionals with an average of 19 years of management experience in the death care services industry

20

Dato' Kong Hon Kong Founder, Executive Director, Managing Director and CEO

25+ years in death care services industry Founded Nirvana in September 1990 Responsibilities: Formulating the

• verall development strategies and

business plans

KONG Yew Foong Executive Director

12+ years in death care services industry Bachelor’s degree in commerce, member of the Australia Certified Practicing Accountant Association Responsibilities: Overseeing the management of the business operations

SOO Wei Chian Executive Director

20+ years in death care services industry Master’s degree in business administration and a qualified accountant Responsibilities: Overseeing the

• verall business planning and

development, finance and human resources

KONG Yew Lian Executive Director

10+ years in death care services industry Bachelor’s degree in business Responsibilities: Overseeing the

• verall marketing planning, products

branding and media relations

GIAM Seu Gek Chief Financial Officer

10+ years in death care services industry, 35+ years of experience in accounting and finance Held various positions at UMW Toyota Motors and Arthur Anderson and is a chartered accountant Responsibilities: Overseeing the

• verall financial, budget control and

corporate finance

HOO Lai Chen Head of cemetery design & construction

15+ years in death care services industry Held various positions at Bayu Sedaya Sdn Bhd, Jasatera Bhd and Larc Development Sdn Bhd Responsibilities: Overseeing the management and development of memorial park projects

YU Chia Chang Jerry Head of sales and marketing

21+ years in death care services industry Held various positions at Huang Guan Shan Gong Mu (皇冠山公墓), Hua Xi Fu Zer Cemetery (花溪福澤陵 園有限公司) and Lung Yen Group Responsibilities: overseeing the

• verall sales, business operations,

training, marketing and business development

CHAN Moey Cheng Head of funeral services

21+ years in death care services industry Held various positions within the Group, including in NV Alliance and as deputy general manager and marketing executive Responsibilities: Managing the daily sales, operations and service quality

• f funeral services of NV Care

7

FINANCIAL SUMMARY

Section 3

REVENUE RECOGNITION

Revenue from pre-need sales of burial plots and niches is recognized when:  The contract is signed;  A significant amount of deposits of the contracted value received; and  The relevant products are ready to be delivered Contract sum is considered to be reasonably assured upon receiving 35% of the total sales price

Recognition of sales of pre-need burial plots and niches Burial plots and niches Other products and services

Tomb design and construction Revenues are generally recognized upon delivery of goods. With respect to personalized tomb, revenue and costs are recognized by reference to the stage of completion Funeral services Revenue from pre-need funeral contracts is deferred until the period in which the services are performed and delivered; revenue from as-need packages is recognized when services are performed Cemetery and columbarium maintenance Customers are charged a one-off maintenance fee for ongoing maintenance services which are recorded as deferred maintenance income and amortized on a straight-line basis over a period of 100 years

Contract signing Payment

• f <35% of

contract sum Payment of 35% of contract sum

Contract sum is recorded as contract sales Entire contract amount recorded as revenue and uncollected installment payments recognized as trade receivables Recorded as customers’ deposits and advance billings under trade payables

Event Financial recognition

22

166.6 140.4 226.8 203.1 224.7 110.1 133.3 165.9 202.6 300.1 74.7 84.5 77.5 130.8 107.0 72.0 114.7 84.5 91.4 111.7 14.4 22.6 20.6 48.7 28.2 100 200 300 400 500 600 700 800 900 2011 2012 2013 2014 2015 (RM 'm) 437.8 495.5 575.3 676.6 771.7 54.5 45.4 72.0 62.0 57.5 36.0 43.2 52.6 61.7 76.8 24.4 27.4 24.6 39.9 27.4 23.5 37.1 26.8 27.9 28.6 4.7 7.3 6.6 15.2 7.2 50 100 150 200 250 2011 2012 2013 2014 2015 (USD 'm) 143.1 160.4 182.6 206.7 197.5

SOLID GROWTH IN CONTRACT SALES

Contract sales evolution

Contract sales growth has continued to be robust

Burial plots Niches Tomb design and construction services Funeral services Others

23

Our contract sales increased at CAGR of 8.4% in USD terms, and 15.2% in RM terms, from 2011 to 2015. The Group’s contract sales decreased by 4.4% in USD terms, but increased by 14.1% in RM terms with growth recorded for all 5 countries that the Group is operating. The increase in RM terms was primarily due to the increase in sales from Singapore, and the newly launched Nirvana Center Kuala Lumpur in Malaysia, Nirvana Memorial Park in Thailand and sales office in Hong Kong, China. Lower contract sales in USD terms was due to the strengthening of USD against RM during 2015.

USD RM

As-need 16.2% Pre-need 83.8% As-need 13.4% Pre-need 86.6%

24

CONTRACT SALES BREAKDOWN

2014

By need type

2015

By need type By geography By geography Malaysia 78.6% Singapore 16.7% Indonesia 3.3% Thailand 1.1% Hong Kong 0.3% Malaysia 86.7% Singapore 9.7% Indonesia 3.6%

• Ex-Malaysia countries’ contribution increased by 8.1 percentage points to 21.4% in 2015.
• Pre-need contract sales increased by 2.8 percentage points to 86.6% in 2015.

139.0 137.8 144.9 177.5 191.1 111.0 115.2 148.8 195.7 201.0 58.5 73.9 83.9 86.8 104.1 33.9 36.9 39.7 43.7 52.4 15.0 19.8 22.9 36.6 31.8 100 200 300 400 500 600 700 2011 2012 2013 2014 2015 (RM 'm) 357.4 383.6 440.2 540.3 580.4

Revenue evolution

SOLID GROWTH IN REVENUE

25

45.4 44.6 46.0 54.2 48.9 36.3 37.3 47.2 59.8 51.5 19.1 23.9 26.6 26.5 26.6 11.1 11.9 12.6 13.4 13.4 4.9 6.4 7.3 11.2 8.2 50 100 150 200 2011 2012 2013 2014 2015 (USD 'm) 116.8 124.2 139.7 165.1 148.6

Revenue increased at CAGR of 6.2% in USD terms and 12.9% in RM terms from 2011 to 2015. Revenue for 2015 rose by 7.4% despite 14.1% growth in contract sales primarily due to contract sales from Nirvana Center Kuala Lumpur and substantial amount of contract sales from Singapore which have not been recognised as revenue in 2015. Lower revenue in USD terms was mainly due to the strengthening of USD against RM.

Burial plots Niches Tomb design and construction services Funeral services Others

USD RM

Malaysia 83.6% Singapore 12.1% Indonesia 4.1% Hong Kong 0.2% Malaysia 85.2% Singapore 11.0% Indonesia 3.8% As-need 18.4% Pre-need 81.6% As-need 18.9% Pre-need 81.1%

26

2014

By need type

2015

By need type By geography By geography

REVENUE BREAKDOWN

76.7 84.8 97.2 116.4 112.4 65.6 68.3 69.6 70.5 75.7 10 20 30 40 50 60 70 80 20 40 60 80 100 120 140 160 2011 2012 2013 2014 2015 Gross profit (USD 'm) Gross margin (%)

EXPANDING GROSS PROFIT MARGINS

We enjoy premium pricing for our products and services through a combination of market leadership, recognized brand and quality services

27

(%)

• Gross profit margin increased by 5.2 percentage points from 70.5% for 2014 to 75.7% for 2015 was primarily

due to : (i) higher margin following the acquisition of tomb construction and design business in March 2015 (ii) economies of scale achieved from higher land utilization, and (iii) better cost management for the funeral services segment.

• Lower gross profit YoY in USD terms was primarily due to the strengthening of USD against RM.

(USD ‘m)

28

SELLING & DISTRIBUTION EXPENSES BREAKDOWN

18.8% 16.8% 13.3% 14.1% 13.6% 3.2% 2.7% 2.7% 3.0% 2.9% 3.3% 3.4% 2.7% 3.6% 5.1% 1.5% 0.8% 0.9% 1.1% 1.2% 0.8% 0.7% 0.8% 1.0% 0.8%

10 20 30 40 2011 2012 2013 2014 2015 (USD 'm) USD35.0m USD31.9m USD30.5m USD37.5m USD34.9m Total as %

• f revenue

30.0% 25.7% 21.8% 22.8% Commissions Incentives Promotion and others Advertising and newsletter Event and function

The selling and distribution expenses to revenue increased by 0.7 percentage point from 22.8% for 2014 to 23.5% for 2015. The increase in promotion expenses to revenue is primarily due to certain expenses in connection with the newly-launched cemeteries in Thailand and Nirvana Center Kuala Lumpur in Malaysia which cannot be deferred in proportion to contract sales not recognized as revenue during the year.

(% represents % of revenue for the year) 23.5%

ADMINISTRATIVE EXPENSES BREAKDOWN

29

Administrative expenses reduced by USD1.6 million, or 5.4%, from USD30.4 million for 2014 to USD28.8 million for 2015, primarily due to one-off share-based payment expenses of USD3.3 million in relation to pre-Listing employees share rights scheme, which were fully vested in 2014. The increase in staff cost in 2015 was mainly due to the integration of work force from the newly acquired tomb design and construction business in March 2015.

Staff cost Administrative and general Depreciation and amortization Others (% represents % of revenue for the year) 18.0% 18.4% 15.8% 18.4% 10.0% 9.6% 9.7% 9.2% 11.4% 4.5% 5.4% 1.7% 3.7% 3.7% 1.6% 1.6% 1.5% 1.3% 1.2%

2.2% 3.1% 5 10 15 20 25 30 35 2011 2012 2013 2014 2015

(USD 'm) 1.9% 1.9% USD30.4m 1.8% USD21.0m USD22.9m USD22.1m 2.0% USD28.8m Employee share right scheme Total as %

• f revenue

1.0% 19.4%

EXPANDING EBITDA MARGINS

30

Adjusted EBITDA1,2

We enjoy premium pricing for our products & services through a combination of market leadership, recognized brand and quality services

31.1 43.9 55.0 65.0 61.3 26.6 35.3 39.4 39.4 41.2 5 10 15 20 25 30 35 40 45 10 20 30 40 50 60 70 80 90 2011 2012 2013 2014 2015 EBITDA (USD 'm) EBITDA margin (%)

(%)

95.1 135.6 173.3 212.8 239.4 26.6 35.3 39.4 39.4 41.2 5 10 15 20 25 30 35 40 45 50 100 150 200 250 300 2011 2012 2013 2014 2015 EBITDA (RM 'm) EBITDA margin (%)

(%)

USD RM

Notes: 1 Adjusted to exclude (a) USD41.5 million (equivalent to RM162.0 million) of net foreign exchange gain in 2015, (b) USD3.3 million (equivalent to RM10.7 million) in share- based payment expenses in 2014, (c) USD5.3million (equivalent to RM17.3 million) Listing expenses in 2014, (d) USD0.3million (equivalent to RM1.1 million) of other expenses relating to the Listing in 2014. 2 EBITDA is calculated by adding finance cost and depreciation and amortisation to profit before taxation.

• As a result of the foregoing, EBITDA margin improved to 41.2% from 39.4% YoY, and registered a CAGR of

18.5% and 30.0% in USD and RM terms respectively between 2011 and 2015

19.5 30.7 34.7 44.6 45.3 16.7 24.7 24.8 27.0 30.5 5 10 15 20 25 30 35 10 20 30 40 50 60 70 2011 2012 2013 2014 2015 Profit for the period (USD 'm) margin (%)

EXPANDING NET PROFIT MARGINS

31

Adjusted profit for the period attributable to owners of the Company1 (“Adjusted Profit”)

Notes: 1 Adjusted to exclude (a) USD41.5 million (equivalent to RM162.0 million) of net foreign exchange gain in 2015, (b) USD3.3 million (equivalent to RM10.7 million) in share- based payment expenses in 2014, (c) USD5.3million (equivalent to RM17.3 million) Listing expenses in 2014, (d) USD0.3million (equivalent to RM1.1 million) of other expenses relating to the Listing in 2014. 2 Income tax expenses divided by adjusted PBT 1

We enjoy premium pricing for our products and services through a combination of market leadership, recognized brand and quality services

(%)

59.6 94.8 109.3 146.2 177.2 16.7 24.7 24.8 27.0 30.5 5 10 15 20 25 30 35 50 100 150 200 250 300 2011 2012 2013 2014 2015 profit for the period (RM 'm) margin (%)

(%)

• The Adjusted Profit margin increased by 3.5 percentage points to 30.5% in 2015, primarily due to (i)

improved gross profit margin, (ii) lower effective income tax rate2, and (iii) lower non-controlling interest in Singapore pursuant to the take-over of the remaining shareholding in September 2014.

• Lower growth in Adjusted Profit in USD terms was mainly due to the strengthening of USD against RM.

USD RM

PRUDENT CASH FLOW MANAGEMENT AND SOLID FINANCIAL PROFILE

Net cash from operating activities

Solid cash flow generation & a strong balance sheet provides flexibility for debt financing in the future

Gearing ratio1 Net cash/(debt)2

Notes: 1 Gearing Ratio = Net Debt/Total Equity 2 Net Debt = Total bank borrowings – Bank Balances and Cash and cash equivalents

27.2 37.6 37.8 21.1

• 5.4

(10) (5) 5 10 15 20 25 30 35 40

2011 2012 2013 2014 2015

(USD 'm) 177.5 31.1 5.9 40 80 120 160 200

2011 2012 2013 2014 2015

(%) NIL NIL

• 22.2
• 10.6
• 3.4

214.8 183.6 (50) 50 100 150 200 250

2011 2012 2013 2014 2015

(USD 'm) In 2015, higher net cash used in

• perating

activities was primarily attributable to payment for land acquisitions and premium in relation to increase in built-up capacity in Singapore totalling USD28.5 million. As at December 31, 2015, excluding the restricted cash amount of USD5.6 million held under the pre-need funeral service contract and maintenance service contract’s trust account, the Group had total fixed deposits, bank balances and cash, and financial instruments classified under financial assets through P&L of USD235.0 million and a bank borrowing of USD46.0 million. Net cash decreased from 2014 to 2015 primarily due to the payment for land acquisition and premium in relation to increase in built-up capacity in Singapore.

32

WORKING CAPITAL OVERVIEW

Trade receivables turnover days1 Trade payables turnover days2

Notes: 1 Trade receivables turnover days are calculated by dividing the arithmetic mean of the opening and ending balance of trade receivables for the period by revenue in that period and then multiplying by the number of days within the period. 2 Trade payables turnover days are calculated by dividing the arithmetic mean of the opening and ending balance of trade payables for the period by cost of sales and services in that period and then multiplying by the number of days within the period.

96 106 116 133 159 20 40 60 80 100 120 140 160 180 2011 2012 2013 2014 2015 65 80 91 116 162 20 40 60 80 100 120 140 160 180 2011 2012 2013 2014 2015

The increase was primarily due to an increasing number of clients electing for longer installment payment periods. To manage the increasing trade receivables, the Company has further incentivized sales agents to promote shorter installment periods to customers. As a result of installment payment, revenue is discounted at an effective interest rate ranging 6.8% to 13.5% (2014: 8.5%) per annum. The increase was in line with the increase in trade receivables turnover period as payment to certain land

• wners of cemeteries in Malaysia were made after the

Group collected payments from customers.

33

STRATEGIES

Section 4

OUR STRATEGIES

We strive to solidify our position as the leading integrated death care service provider in Asia via to the following strategies: Our strong track record is the most convincing evidence that these strategies could be well executed and generate substantial returns to our investors

35

Expand capacity in

• ur existing locations

Develop new locations through greenfield projects Build on our recognized brand names to capitalize

• n our brand strategy

Expand our business through selective strategic acquisitions

• f existing operations

Continue to expand and increase the productivity of

• ur sales

agency network

1 3 4 2 5