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Financial Statements and Related Announcement::First Quarter Results Issuer & Securities Issuer/ Manager IFS CAPITAL LIMITED Securities IFS CAPITAL LIMITED - SG1A35000706 - I49 Stapled Security No Announcement Details Announcement Title Financial Statements and Related Announcement Date & Time of Broadcast 08-May-2015 20:02:48 Status New Announcement Sub Title First Quarter Results Announcement Reference SG150508OTHRGYCK Submitted By (Co./ Ind. Name) Chionh Yi Chian Designation Company Secretary Description (Please provide a detailed description of the event in the box below - Refer to the Online help for the format) The following are attached: (1) First Quarter Financial Results for the period ended 31 March 2015 (2) Presentation Slides for the First Quarter 2015 Results Additional Details For Financial Period Ended 31/03/2015 Attachments 1Q2015_FinancialResults.pdf 1Q2015_PresentationSlides.pdf Total size =277K

Page 1 of 1 Financial Statements and Related Announcement::First Quarter Results 08-May-15 http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=Announce...

(Registration no: 198700827C)

1

First Quarter Unaudited Financial Statements and Dividend Announcement for the Period Ended 31 March 2015

TABLE OF CONTENTS

Item No. Description Page No. 1(a)(i) Consolidated Statement of Profit or Loss and Statement of Comprehensive Income 2 - 3 1(a)(ii) Explanatory Notes to Consolidated Statement of Profit or Loss 4 - 5 1(a)(iii) Earnings Per Ordinary Share 6 1(b)(i) Statement of Financial Position and Comments on Major Statement of Financial Position Variances 7 - 8 1(b)(ii) Group’s Borrowings 9 1(b)(iii) Net Asset Value 9 1(c) Consolidated Statement of Cash Flows and Explanatory Notes 10 - 12 1(d)(i) Statement of Changes in Equity 13 1(d)(ii) Changes in Company’s Share Capital 14 1(d)(iii) Total Number of Issued Shares Excluding Treasury Shares 14 1(d)(iv) Sales, Transfers, Disposal, Cancellation and/or use of Treasury Shares 14 2 & 3 Audit and Auditors’ Report 14 4 & 5 Accounting Policies and Changes in Accounting Policies 14 - 15 6 Review of Group Performance 15 7 Variance from Prospect Statement 15 8 Prospects 16 9 & 10 Dividend 16 11 Interested Person Transactions Mandate 17 Confirmation By The Board Pursuant to Rule 705(4) of the Listing Manual 18

(Registration no: 198700827C)

2

First Quarter Unaudited Financial Statements and Dividend Announcement for the Period Ended 31 March 2015

1(a)(i) Consolidated Statement of Profit or Loss for the Three Months Ended 31 March Note 1st Quarter 1(a) (ii) 2015 S$’000 2014 S$’000 +/(-) % Interest income 6,470 5,880 10.0 Interest expense (1,735) (1,463) 18.6 Net interest income (a) 4,735 4,417 7.2 Gross written premiums 2,299 2,714 (15.3) Change in gross provision for unexpired risks 509 (314) NM Gross earned premium revenue 2,808 2,400 17.0 Written premiums ceded to reinsurers (1,222) (1,350) (9.5) Reinsurers’ share of change in provision for unexpired risks (477) (169) 182.2 Reinsured premium expense (1,699) (1,519) 11.8 Net earned premium revenue (b) 1,109 881 25.9 Fee and commission income (c) 2,013 1,913 5.2 Investment income (d) 989 1,116 (11.4) Other income (e) 87 223 (61.0) Non-interest income 3,089 3,252 (5.0) Income before operating expenses 8,933 8,550 4.5 Business development expenses (146) (198) (26.3) Commission expenses (189) (146) 29.5 Staff costs (3,505) (3,411) 2.8 General and administrative expenses (1,613) (1,556) 3.7 Operating expenses (f) (5,453) (5,311) 2.7 Change in provision for insurance claims 796 (190) NM Reinsurers’ share of change in provision for insurance claims (652) 59 NM Gross claims paid (17) (8) 112.5 Reinsurers’ share of claims paid (19) (2) NM Net claims reversal/(incurred) (g) 108 (141) NM Operating profit before allowances 3,588 3,098 15.8 Allowances for loan losses and impairment of investments (h) (2,694) (1,591) 69.3 Profit before tax 894 1,507 (40.7) Tax expense (265) (334) (20.7) Profit for the period 629 1,173 (46.4) Profit attributable to: Owners of the Company 315 870 (63.8) Non-controlling interests 314 303 3.6 Profit for the period 629 1,173 (46.4)

3 Consolidated Statement of Comprehensive Income for the Three Months Ended 31 March Note 1st Quarter 1(a) (ii) 2015 S$’000 2014 S$’000 +/(-) % Profit for the period 629 1,173 (46.4) Other comprehensive income Items that are or may be reclassified subsequently to profit or loss Net change in fair value of available-for-sale financial assets 165 176 (6,3) Net change in fair value of available-for-sale ( financial assets reclassified to profit or loss (i) (241) (1,067) (77.4) Foreign currency translation differences

• f foreign operations

(j) 2,079 1,128 84.3 Tax on other comprehensive income 13 152 (91.4) Other comprehensive income for the period, net of tax 2,016 389 NM Total comprehensive income for the period 2,645 1,562 69.3 Attributable to: Owners of the Company 1,740 1,183 47.1 Non-controlling interests 905 379 138.8 Total comprehensive income for the period 2,645 1,562 69.3

NM – not meaningful/more than+/- 200%

4 1(a)(ii) Explanatory Notes to Consolidated Statement of Profit or Loss The following items have been included in arriving at Group net profit for the period: 1st Quarter 2015 S$’000 2014 S$’000 +/(-) % Investment income

• dividend, fee and interest income

359 358 0.3

• gain/(loss) on disposal of equity securities

55 (14) NM

• gain on partial redemption of convertible loan

241 1,067 (77.4)

• net change in fair value of financial assets

at fair value through profit or loss 270 (298) NM

• amortisation of held-to-maturity debt securities

(24) 3 NM

• exchange gain

88

• NM

989 1,116 (11.4) Gain on disposal of property, plant and equipment

• 6

(100.0) Amortisation of intangible assets (86) (103) (16.5) Depreciation of property, plant and equipment (270) (240) 12.5 Exchange gain, net 29 19 52.6 Reversal of/(provision for) unexpired risks, net of reinsurers’ share

• change in gross provision for unexpired risks

509 (314) NM

• reinsurers’ share of change in

provision for unexpired risks (477) (169) 182.2 32 (483) NM Claims reversal/(incurred), net of reinsurers’ share

• net change in provision for insurance claims

144 (131) NM

• net claims paid

(36) (10) NM 108 (141) NM Allowances for loan losses and impairment of investments

• loans and receivables

(2,694) (1,440) 87.1

• equity securities
• (151)

(100.0) (2,694) (1,591) 69.3 Tax expense

• current tax expense

(345) (296) 16.6

• deferred tax credit/(expense)

145 (34) NM

• underprovision of prior years’ tax

(65) (4) NM (265) (334) (20.7)

5

1(a)(ii) Explanatory Notes to Consolidated Statement of Profit or Loss (cont’d) Comments on Major Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income Variances (a) The increase in net interest income for 1st Quarter 2015 (“1Q 2015”) was mainly driven by the growth in the Group’s financing business volume. (b) The decline in gross written premiums of the insurance subsidiary, ECICS Limited (“ECICS”) for 1Q 2015 was largely due to lower bonds and guarantee business. With a write back on change in gross provision for unexpired risks as compared to a charge for 1st Quarter 2014 (“1Q 2014”), gross earned premium revenue increased 17% to $2.8 million. After accounting for higher premiums ceded to reinsurers, net earned premium revenue surged 26% to $1.1 million. (c) The increase in fee and commission income was mainly due to higher reinsurance commission received and higher factoring service fee on growth in factoring volume. (d) The lower investment income was mainly due to lower gain on partial redemption of convertible loan, mitigated by fair value gain on investments and gain on disposal of equity securities. The gain on partial redemption of convertible loan was reclassified from other comprehensive income. (e) The lower other income was mainly due to lower bad debts recoveries from loan accounts previously written off. (f) The higher operating expenses were mainly on commission expenses related to broker- referred insurance business and staff costs linked to increased headcount. (g) The net claims reversal related mainly to write back of provision for credit insurance and bond and guarantee clients, partly offset by provision for claims incurred but not reported. (h) The higher allowances for loan losses and impairment of investments were mainly due to higher individual impairment on loans. (i) For both 1Q 2015 and 1Q 2014, there was a reclassification from other comprehensive income- net change in fair value of available-for-sale financial assets to realised gain as explained in (d) above. (j) The foreign currency translation differences arose from the translation of financial statements of foreign operations whose functional currencies were different from that of the Group’s presentation currency. The translation gain for 1Q 2015 was mainly due to the further strengthening of Thai Baht for translation against the Singapore Dollar as at 31 December

• 2014. The translation gain for 1Q 2014 was mainly due to the strengthening of Thai Baht and

Indonesian Rupiah for translation against the Singapore Dollar as at 31 December 2013.

6

1(a)(iii) Earnings Per Ordinary Share Group 1st Quarter 2015 2014 Earnings per share

• on weighted average number of ordinary shares in issue

0.21 cents 0.58 cents

• on fully diluted basis

0.21 cents 0.58 cents Earnings per ordinary share on existing issued share capital is computed based on the weighted average number of shares in issue during the financial period of 150,387,866 (31 March 2014: 150,387,866). The basic and fully diluted earnings per ordinary share are the same as the Group did not have any potential dilutive ordinary share outstanding for the above reporting financial periods.

7

1(b)(i) Statement of Financial Position

Group Company Note 31/03/2015 S$’000 31/12/2014 S$’000 31/03/2015 S$’000 31/12/2014 S$’000 Non-current assets Property, plant and equipment (a) 19,789 17,231 14,954 15,111 Intangible assets 888 642 164 184 Subsidiaries

• 75,845

75,845 Other investments (b) 51,453 48,704 8,446 7,000 Loans, advances, hire purchase and leasing receivables (c) 53,121 48,785 45,063 40,483 Deferred tax assets 7,040 6,832 410 230 132,291 122,194 144,882 138,853 Current assets Reinsurers’ share of insurance contract provisions 17,981 19,110

• Insurance receivables

976 1,052

• Trade and other receivables

(d) 214,383 212,745 102,587 107,246 Other investments (e) 22,132 24,794

• Derivative financial assets

150 190 150 190 Cash and cash equivalents (f) 28,043 24,013 7,327 7,510 Assets held for sale 174 167

• 283,839

282,071 110,064 114,946 Total assets 416,130 404,265 254,946 253,799 Equity Share capital 88,032 88,032 88,032 88,032 Other reserves (2,174) (3,599) 888 863 Accumulated profits 36,463 36,148 26,364 27,585 Equity attributable to

• wners of the Company

122,321 120,581 115,284 116,480 Non-controlling interests 12,126 11,221

• Total equity

134,447 131,802 115,284 116,480 Non-current liabilities Interest-bearing borrowings (g) 42,204 46,683 32,299 35,610 Employee benefits 1,025 931

• 43,229

47,614 32,299 35,610 Current liabilities Trade and other payables 6,881 8,275 4,593 5,068 Insurance payables 2,126 2,418

• Interest-bearing borrowings

(g) 198,619 182,419 102,315 96,173 Insurance contract provisions for

• gross unexpired risks

13,003 13,512

• gross insurance claims

16,109 16,905

• Current tax payable

1,716 1,320 455 468 238,454 224,849 107,363 101,709 Total liabilities 281,683 272,463 139,662 137,319 Total equity and liabilities 416,130 404,265 254,946 253,799

8

Comments on Major Statement of Financial Position Variances (a) The increase was mainly due to the purchase of a new office unit for business use by the Thailand subsidiary. (b) The increase in other investments under non-current assets was mainly due to ECICS’ purchase

• f debt securities and the Company’s subscription of rights issue in an unquoted equity security.

(c) The increase in loans, advances, hire purchase and leasing receivables under non-current assets

• f the Group and the Company was mainly due to the Company’s new loans drawdown.

(d) The increase in trade and other receivables under current assets of the Group was mainly due to higher factoring receivables, partly offset by loan repayments. The decrease at Company level was mainly due to loan repayments. (e) The decrease in other investments under current assets at Group level was due to maturity of ECICS’ held-to-maturity debt securities. (f) The Group’s cash and cash equivalents comprise fixed deposits of $15.5 million and cash at banks and in hand of $12.5 million. The increase in the cash balances was mainly due to fixed deposits placements by ECICS from proceeds of debt securities redeemed coupled with higher surplus funds from loan repayments. (g) The decrease in interest-bearing borrowings under non-current liabilities of the Group and the Company was mainly due to reclassification of interest-bearing borrowings maturing within the next twelve months to current liabilities. The Group’s overall interest-bearing borrowings increased from $229.1 million as at 31 December 2014 to $240.8 million as at 31 March 2015 mainly due to additional bank borrowings to fund factoring business and new loans drawdown.

9

1(b)(ii) Group’s Borrowings Unsecured As at 31/03/2015 $’000 As at 31/12/2014 S$’000 Amount repayable in one year or less, or on demand 198,619 182,419 Amount repayable after one year 42,204 46,683 240,823 229,102 Details of any collateral Nil. 1(b)(iii) Net Asset Value Group Company 31/03/2015 31/12/2014 31/03/2015 31/12/2014 Net asset value per ordinary share based on issued share capital at end of the financial period 81.3 cents 80.2 cents 76.7 cents 77.5 cents

10

1(c) Consolidated Statement of Cash Flows for the Three Months Ended 31 March

1st Quarter Note 2015 S$’000 2014 S$’000 Cash flows from operating activities Profit for the period 629 1,173 Adjustments for: Amortisation of intangible assets and held-to-maturity debt securities 110 100 Net foreign exchange gain (89) (5) Depreciation of property, plant and equipment 270 240 (Gain)/loss on disposal of equity securities (55) 14 Gain on partial redemption of convertible loans (241) (1,067) Gain on disposal of property, plant and equipment

• (6)

Net change in fair value of financial assets at fair value through profit or loss (270) 298 Allowance for impairment of investments

• 151

(Reversal of)/provision for, net of reinsurers’ share

• unexpired risks

(32) 483

• insurance claims

(144) 131 Interest income (6,470) (5,880) Interest income from investments and fixed deposits (299) (230) Dividend income from investments (60) (128) Interest expense 1,735 1,463 Tax expense 265 334 Operating cashflows before changes in working capital (4,651) (2,929) Changes in working capital: Factoring receivables (2,456) 10,157 Factoring amounts due to clients (351) (261) Loans, advances, hire purchase and leasing receivables 1,991 (7,851) Insurance and other receivables 357 396 Assets held for sale (9)

• Trade, other and insurance payables

(1,371) (1,964) Cash used in operations (6,490) (2,452) Interest received 6,886 6,090 Interest paid (1,686) (1,528) Taxes refund/(paid), net 39 (339) Net cash (used in)/from operating activities (a) (1,251) 1,771

11

1(c) Consolidated Statement of Cash Flows for the Three Months Ended 31 March (cont’d)

1st Quarter Note 2015 S$’000 2014 S$’000 Cash flows from investing activities Proceeds from sale of property, plant and equipment

• 6

Purchase of property, plant and equipment (2,775) (215) Purchase of intangible assets (327) (19) Purchase of investments (6,330) (6,590) Proceeds from redemption/disposal of investments 6,837 4,387 Dividend received from investments 60 128 Net cash used in investing activities (b) (2,535) (2,303) Cash flows from financing activities Proceeds from/(repayments of) interest-bearing borrowings 7,460 (4,620) Net cash from/(used in) financing activities (c) 7,460 (4,620) Net increase/(decrease) in cash and cash equivalents (d) 3,674 (5,152) Cash and cash equivalents at beginning of period 24,013 62,142 Effect of exchange rate fluctuations on cash held 356 185 Cash and cash equivalents at end of period 28,043 57,175 Analysis of cash and cash equivalents Fixed deposits 15,545 43,732 Cash at banks and on hand 12,498 13,443 Cash and cash equivalents at end of period 28,043 57,175

12

Explanatory Notes to Statement of Cash Flows (a) Net cash (used in)/from operating activities The net cash used in operating activities in 1Q 2015 was mainly due to drawdown of factoring receivables, partly offset by repayments of loans, advances, hire purchase and leasing receivables. The net cash from operating activities in 1Q 2014 was mainly due to repayment of factoring receivables, partly offset by drawdown of loans, advances, hire purchase and leasing receivables. (b) Net cash used in investing activities The higher net cash used in investing activities in 1Q 2015 was mainly due to higher purchase of property, plant and equipment, partly offset by higher proceeds from disposal of investments. Details of the purchase of investments of $6.3 million and proceeds from redemption/disposal of investments of $6.8 million for 1Q 2015 are as follows:- Details Purchase of investments Proceeds from redemption/ disposal of investments S$’000 S$’000 ECICS Limited *

• Quoted equity securities

2,914 3,762

• Quoted debt securities

2,000 2,250 IFS Group (excluding ECICS Limited)

• Unquoted equity securities

1,416

• Convertible loan
• 825

Total 6,330 6,837

* MAS regulated insurance company, within the exception of Rules 704(17) and 704(18) of the Listing Manual.

(c) Net cash from/(used in) financing activities The net cash from financing activities in 1Q 2015 resulted from additional interest-bearing borrowings to fund drawdown of new loans and factoring receivables. The net cash used in financing activities in 1Q 2014 was due to utilisation of surplus funds for repayments of interest- bearing borrowings. (d) Net increase/(decrease) in cash and cash equivalents The net increase in cash and cash equivalents in 1Q 2015 resulted from proceeds from interest- bearing borrowings, partly offset by net cash used in operating and investing activities. The net decrease in cash and cash equivalents in 1Q 2014 resulted from purchase of investments coupled with utilisation of funds for repayments of interest-bearing borrowings from net cash generated from

• perating activities and proceeds from disposal of investments.

13

1(d)(i) Statement of Changes in Equity

Attributable to owners of the Company Group Share capital S$’000 Capital reserve S$’000 Fair value reserve S$’000 Translation reserve S$’000 Accumulated profits S$’000 Total S$’000 Non- controlling interests S$’000 Total equity S$’000 2014 At 1 January 2014 88,032 (236) 1,507 (8,794) 47,047 127,556 10,078 137,634 Total comprehensive income for the period Profit for the period

• 870

870 303 1,173 Other comprehensive income

• (739)

1,052

• 313

76 389 Total comprehensive income for the period

• (739)

1,052 870 1,183 379 1,562 At 31 March 2014 88,032 (236) 768 (7,742) 47,917 128,739 10,457 139,196 2015 At 1 January 2015 88,032 (39) 3,702 (7,262) 36,148 120,581 11,221 131,802 Total comprehensive income for the period Profit for the period

• 315

315 314 629 Other comprehensive income

• (63)

1,488

• 1,425

591 2,016 Total comprehensive income for the period

• (63)

1,488 315 1,740 905 2,645 At 31 March 2015 88,032 (39) 3,639 (5,774) 36,463 122,321 12,126 134,447 Company Share capital S$’000 Fair value reserve S$’000 Accumulated profits S$’000 Total equity S$’000 2014 At 1 January 2014 88,032 1,485 22,445 111,962 Total comprehensive income for the period Profit for the period

• 393

393 Other comprehensive income

• (749)
• (749)

Total comprehensive income for the period

• (749)

393 (356) At 31 March 2014 88,032 736 22,838 111,606 2015 At 1 January 2015 88,032 863 27,585 116,480 Total comprehensive income for the period Loss for the period

• (1,221)

(1,221) Other comprehensive income

• 25
• 25

Total comprehensive income for the period

• 25

(1,221) (1,196) At 31 March 2015 88,032 888 26,364 115,284

14

1(d)(ii) Changes in Company’s Share Capital Since 31 December 2014, there was no change in the issued share capital of the Company. The share capital of the Company as at 31 March 2015 was 150,387,866 ordinary shares. There were no outstanding convertibles as at 31 March 2015 (31 March 2014: Nil). 1(d)(iii) Total Number of Issued Shares Excluding Treasury Shares The total number of issued shares as at 31 March 2015 was 150,387,866 (31 December 2014: 150,387,866 issued shares). The Company does not hold any treasury shares as at 31 March 2015 (31 March 2014: Nil). 1(d)(iv) Sales, Transfers, Disposal, Cancellation and/or use of Treasury Shares Not applicable. 2 Audit The figures have not been audited or reviewed by the Company’s auditors. 3 Auditors’ Report Not applicable. 4 Accounting Policies Except as disclosed in paragraph 5, the Group has applied the same accounting policies and methods of computation in the financial statements for the current financial period as compared with those of the audited annual financial statements for the year ended 31 December 2014. 5 Changes in Accounting Policies The financial statements are prepared in accordance with Singapore Financial Reporting Standards (FRSs). For the current financial period, the Group adopted the new/revised FRSs that are effective for annual periods beginning on or after 1 January 2015. The following are the new or amended FRSs that are relevant to the Group:

• Amendments to FRS 19 Defined Benefit Plans: Employee Contributions
• Improvements to FRSs (January 2014)
• Improvements to FRSs (February 2014)

15

The adoption of the above amended FRS does not have any significant impact on the financial statements for the financial period under review. 6 Review of Group Performance 1st Quarter 2015 (“1Q 2015”) versus 1st Quarter 2014 (“1Q 2014”) The Group’s operating income increased 5% to $8.9 million, supported by higher net interest income and net earned premium revenue, partly offset by lower non-interest income. After taking into account the net claims reversal and higher operating expenses, the Group achieved a 16% increase in operating profit before allowances of $3.6 million. Excluding the gain on partial redemption of convertible loan recognised for 1Q 2015 and 1Q 2014, the Group would have achieved a 65% increase in operating profit before allowances as compared to 1Q 2014. The better performance was, however, affected by the higher allowances for loan losses of $2.7 million which dragged down the net profit after tax to $629,000 as compared to $1.2 million in 1Q 2014. Net profit attributable to shareholders after non-controlling interests (“NCI”) was $315,000. The Group’s loan assets including factoring receivables outstanding were $358.7 million as at 31 March

• 2015. This was an increase of 4% and 7% against the bases of $345.5 million as at 31 December 2014

and $334.8 million as at 31 March 2014 respectively due to higher factoring receivables and new loans drawdown. For the regional operations, our Thailand subsidiary reported a 4% drop in net profit after NCI to THB20.4 million as compared to THB21.3 million in 1Q 2014 mainly due to higher allowances for loan losses. However, with the strengthening of Thai Baht for translation against the Singapore Dollar, the company’s net profit after NCI increased 3% to $853,000 as compared to $825,000 in 1Q 2014. Our Indonesia subsidiary posted a 38% increase in net profit to $80,000 as compared to $58,000 in 1Q 2014 mainly due to higher revenue on growth in factoring business, partly offset by higher allowances for loan losses. Our Malaysia subsidiary reported a lower net loss of $59,000 as compared to $101,000 in 1Q 2014, mainly on lower operating expenses. Overall, regional operations recorded a 29% increase in net profit after NCI of $763,000 as compared to $592,000 in 1Q 2014. 7 Variance from Prospect Statement The current announced results are in line with the prospect statement as disclosed in the Group’s 2014 full year results announcement dated 24 February 2015.

16

8 Prospects Trends in the operating businesses in Singapore and Thailand are encouraging. Loan volumes for Singapore have increased by 8% in the first quarter of 2015 and the pipeline of deals suggests that this growth can continue. In Thailand, our subsidiary is expected to maintain its profitability in 2015 despite weaker growth in the Thai economy. ECICS continues to build up its general insurance business in the first quarter of 2015. In Indonesia and Malaysia, business conditions are proving difficult and our efforts are focused on recovery. We continue to closely monitor our loan book, parts of which are vulnerable to weakening economic conditions. 9 Dividend (a) Current financial period reported on Nil. (b) Corresponding period of the immediately preceding financial year Nil. (c) Dividend payment date Not applicable. (d) Book closure date Not applicable. 10 If no dividend has been declared (recommended), a statement to that effect No dividend is declared for the period ended 31 March 2015 (31 March 2014: Nil).

17

11 Interested Person Transactions Mandate There is no general mandate obtained from shareholders on Interested Person Transactions. By Order of the Board Chionh Yi Chian Company Secretary 8 May 2015

IFS Capital Limited

IFS Capital Limited First Quarter 2015 Unaudited Results Presentation 11 May 2015

1

IFS Capital Limited

Contents

S lide

1. Highlights 3 - 4 2. (a) Group S tatement of Profit or Loss 5 (b) Group S tatement of Comprehensive Income 6 (c) Group Operating Expenses 7 3. Key Financial Ratios 8 4. Group Performance Review 9 - 11

• 5. Results of S

ubsidiaries

• Regional Operations

12 - 13

• ECICS

14 - 15

• 6. Prospects

16 2

Disclaimer The following presentation may contain forward looking statements by the management of IFS Capital Limited (“ IFS ") relating to events and financial trends or performance for future period. S uch forward looking statements are based on current views of management and a number of estimates and assumptions including, but not limited to, prevailing economic and market conditions, which are subj ect to uncertainties as these may change over time. In many cases these are outside the control of IFS and thus no assurance can be given that these events or financial trends or performance will happen. In part icular, such statement s are not, and should not be construed, as a representation as to or a forecast or proj ection of the future performance of IFS . It should be noted t hat t he actual performance of IFS may vary significantly from such statements. This presentation is not and does not constitute or form part of any offer, invitation, advice or recommendation to sell, purchase or subscribe for any securities and no part of it shall form the basis or be relied upon in connection with any contract, commitment or investment decision in relation thereto. This presentation may not be used or relied upon by any third party, or for any other purposes, and may not be reproduced, disseminated or quoted without the prior written consent of IFS . “ $” means S ingapore dollars unless otherwise indicated. IFS Capital Limited (Reg. No. 198700827C)

IFS Capital Limited

3

Highlights



Group’s operating income for 1Q 2015 of $8.9m was 5% higher compared to 1Q 2014.



Higher net earned premium revenue of $1.1m (1Q 2014: $0.9m).



Lower non-interest income of $3.1m (1Q 2014: $3.3m).



Higher operating expenses of $5.5m (1Q 2014: $5.3m).



Net claims reversal of $108,000 (1Q 2014: incurred of $141,000).



Higher allowances of $2.7m (1Q 2014: $1.6m).



Net profit of $629,000 (1Q 2014: $1.2m).



After non-controlling interests (“ NCI” ), profit attributable to shareholders was $315,000 (1Q 2014: $870,000).

IFS Capital Limited

4

Highlights (cont’d)



Regional operations posted higher net profit after NCI of $763,000 (1Q 2014: $592,000).



Improvement in other comprehensive income to $2.0m (1Q 2014: $389,000) due to higher translation gain from the strengthening of Thai Baht for translation against S $.



EPS (cents) : 0.21 (1Q 2014: 0.58) NAV per S hare (cents) : 81.3 (FY 2014: 80.2)



Net interest margin at around 5.95% .

IFS Capital Limited

5

Group Statement of Profit or Loss

($’000)

1Q 2015 1Q 2014 +/(-) %

Net Interest Income 4,735 4,417 7.2 Net Earned Premium Revenue ^ 1,109 881 25.9 Non-Interest Income 3,089 3,252 (5.0) Total Income 8,933 8,550 4.5 Operating Expenses (5,453) (5,311) 2.7 Operating Profit before Net Claims & Allowances 3,480 3,239 7.4 Net Claims Reversal/(Incurred) 108 (141) NM Allowances & Impairments (2,694) (1,591) 69.3 Profit before Tax 894 1,507 (40.7) Tax Expense (265) (334) (20.7) Profit after Tax 629 1,173 (46.4) Attributable Profit after NCI 315 870 (63.8)

^ After intra-group transactions elimination

IFS Capital Limited

($’000)

1Q 2015 1Q 2014 +/(-) %

Profit for the period 629 1,173 (46.4) Other comprehensive income Items that are or may be reclassified subsequently to profit

• r loss

Net change in fair value of available-for-sale financial assets 165 176 (6.3) Net change in fair value of available-for-sale financial assets reclassified to profit or loss (241) (1,067) (77.4) Foreign currency translation differences of foreign

• perations

2,079 1,128 84.3 Tax on other comprehensive income 13 152 (91.4) Other comprehensive income for the period, net of tax 2,016 389 NM Total comprehensive income for the period 2,645 1,562 69.3

6

Group Statement of Comprehensive Income

IFS Capital Limited

7

Group Operating Expenses

($’000)

1Q 2015 % 1Q 2014 % +/(-) %

Commission 189 3.5 146 2.8 29.5 Business Development 146 2.7 198 3.7 (26.3) Staff Costs 3,505 64.3 3,411 64.2 2.8 Depreciation & Amortisation 356 6.5 343 6.5 3.8 General Administration 1,257 23.0 1,213 22.8 3.6 Total 5,453 100.0 5,311 100.0 2.7 Cost-to-Income Ratio 60.1% 60.6% (0.8) 3% increase in operating expenses mainly due to

• higher commission expenses related to broker-referred insurance business; and
• higher staff costs linked to increased headcount.

IFS Capital Limited

8

Key Financial Ratios

1Q 2015 1Q 2014 +/(-) % Return on Ave Equity –After Tax (% ) 0.3 0.7 (57.1) Earnings per Share (cts) 0.21 0.58 (63.8) Net Asset Value per Share (cts) 81.3 85.6 (5.0) Leverage (times) 2.36 2.02 16.8 Gross Gearing (times) 1.97 1.71 15.2

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Group Performance Review – 1Q 2015 vs 1Q 2014



Group’s operating income increased 5%to $8.9m due to:

• higher net interest income mainly driven by growth in financing activities;
• higher fee and commission mainly due to higher reinsurance commission

received and higher factoring service fee on growth in factoring volume; and

• higher gross earned premium revenue on write back on change in gross

provision for unexpired risks. After accounting for higher premiums ceded to reinsurers, net earned premium revenue surged 26% to $1.1m, partly

• ffset by
• lower investment income mainly due to lower gain on partial redemption
• f convertible loan, mitigated by fair value gain on investments and gain
• n disposal
• f

equity securities. The gain on partial redemption of convertible loan was reclassified from other comprehensive income.

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Group Performance Review – 1Q 2015 vs 1Q 2014 (cont’d)



Group’s operating expenses up 3%or $142,000 to $5.5m mainly on commission expenses related to broker-referred insurance business and staff costs linked to increased headcount.



After taking into account net claims reversal of $108,000 related mainly to write back of provision for credit insurance and bond and guarantee clients; and higher

• perating expenses,

the Group achieved a 16% increase in

• perating profit before allowances of $3.6m.

Excluding the gain on partial redemption of convertible loan recognised for 1Q 2015 and 1Q 2014, the Group would have achieved a 65% increase in

• perating profit

before allowances.



Due to higher allowances for loan losses of $2.7m, net profit after tax was lower at $629,000 as compared to $1.2m in 1Q 2014.



Net profit attributable to shareholders after NCI was $315,000 as compared to $870,000 in 1Q 2014.

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Group Performance Review – 1Q 2015 vs 1Q 2014 (cont’d)



Group’s loan assets including factoring receivables outstanding of $358.7m increased 4% and 7% against the bases of $345.5m as at 31 December 2014 and $334.8m as at 31 March 2014 respectively due to higher factoring receivables and new loans drawdown.

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Regional Operations – Indonesia, Malaysia & Thailand

($’000)

1Q 2015 1Q 2014 +/(-) %

Net Interest Income 2,845 2,618 8.7 Non-Interest Income 1,515 1,454 4.2 Operating Expenses (1,855) (1,955) (5.1) Operating Profit before Allowances 2,505 2,117 18.3 Allowances (1,160) (962) 20.6 Profit before Tax 1,345 1,155 16.5 Tax Expense (268) (260) 3.1 Profit after Tax (PAT) 1,077 895 20.3 Group’s share of PAT based on %

• f shareholdings

763 592 28.9

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Regional Operations (cont’d)

• Indonesia, Malaysia & Thailand



Thailand subsidiary reported a 4% drop in net profit after NCI, in its home currency, mainly due to higher allowances for loan losses. With the strengthening of Thai Baht for translation against the S $, net profit after NCI increased 3%to $853,000 (1Q 2014: $825,000).



Indonesia subsidiary posted a 38% increase in net profit to $80,000 (1Q 2014: $58,000) mainly due to higher revenue on growth in factoring business, partly

• ffset by higher allowances for loan losses.



Malaysia subsidiary reported a lower net loss of $59,000 compared to $101,000 in 1Q 2014 mainly on lower operating expenses.

IFS Capital Limited

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ECICS Limited

($’000)

1Q 2015 1Q 2014 +/(-) %

Gross Written Premiums 2,306 2,727 (15.4) Net Earned Premium Revenue 1,116 894 24.8 Fee and Investment Income 1,079 492 119.3 Claims Reversal/(Incurred) 108 (141) NM Operating Expenses (1,566) (1,164) 34.5 Operating Profit before Allowances 737 81 NM Reversal of Impairment on Insurance Receivables 172 58 197 Profit before Tax 909 139 NM Tax Expense (178) (9) NM Profit after Tax 731 130 NM N.B. (Before intragroup transactions elimination)

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ECICS Limited



Net profit after tax higher at $731,000 as compared to $130,000 for 1Q 2014 due to higher net earned premium revenue, higher fee and investment income and net claims reversal.



Gross written premiums declined 15%to $2.3m largely due to lower bonds and guarantee business.



With a write back on change in gross provision for unexpired risks as compared to a charge for 1Q 2014, and after accounting for higher premiums ceded to reinsurers, net earned premium revenue surged 25%to $1.1m.



Higher underwriting commission income due to higher reinsurance commission received.



Higher investment income mainly from fair value gain and higher interest on investments.



Remains substantially well capitalized above the minimum statutory requirement.

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Prospects



Trends in the operating businesses in Singapore and Thailand are encouraging. Loan volumes for S ingapore have increased by 8%in 1Q 2015 and the pipeline of deals suggests that this growth can continue.



In Thailand, our subsidiary is expected to maintain its profitability in 2015 despite weaker growth in the Thai economy.



ECICS continues to build up its general insurance business in 1Q 2015.



In Indonesia and Malaysia, business conditions are proving difficult and our efforts are focused on recovery.



We continue to closely monitor our loan book, parts of which are vulnerable to weakening economic conditions.

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THE END THANK YOU