1

Results BriefingResults for the first quarter ended

30 June 2016

11 August 2016

2

� Executive summary

� Financial highlights

�Operational updates

3

11

Raya festive buying impact shifted forward into Q1 FY16/17. Expects credit collections to be challenging in next quarter in line with Malaysia macro environment.

Outlook: Consumer sentiment remains soft in the short term but we remain positive about the medium to longer term outlook.

Executive summary

55

33On track to open four smaller-format new stores in Indonesia and a minimum of six new stores in Malaysia.

44

Festive buying aids strong credit sales in Singapore and Malaysia.22

55.8% growth in net profit to S$9.4 million for Q1 FY16/17, up from S$6.0 million in Q1 FY15/16, largely due to better margin management and cost reductions. EPS increases by 61.6%.

4

� Executive summary

� Financial highlights

� Operational updates

5

Financial summary and key financial ratios

Notes:Q1, FY: Refers to the first(1st) quarter from 1 April to 30 June and financial year from 1 April to 31 March respectively1: Basic earnings per share is calculated by dividing the Group's profit after tax attributable to shareholders by the weighted average ordinary shares during the three months ended 30 June 2016 and the same period last year of 521,386,919 and 538,186,540 respectively. 2: Diluted earnings per share is calculated by dividing the Group's profit after tax attributable to shareholders by the weighted average ordinary shares during the three months ended 30 June 2016 and the same period last year of 525,297,919 and 538,678,940 respectively. 3: Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the current financial year reported on and immediately preceding financial year of 519,526,066 and 522,692,346 respectively.4: Comparative figures for statement of cash flows have been reclassified to be consistent with the presentation of the Group for the period ended Q1 FY16/17.

(S$m unless otherwise stated)

Income statement Q1 FY1617 Q1 FY1516

Revenue 196.3 198.2

Gross profit 70.9 68.3

Net profit 9.4 6.0

Basic EPS (cents)1 1.81 1.12

Fully diluted EPS (cents)2 1.79 1.12

Balance sheet As at 30 Jun 2016 As at 31 Mar 2016

Cash and bank balances 61.6 147.5

Trade and other receivables 550.7 539.5

Borrowings 310.8 371.2

NAV per ordinary share (cents)3 56.8 55.8

Statement of cash flows4 Q1 FY1617 Q1 FY1516

Net cash used in operating activities (20.5) (8.4)

Net cash used in investing activities (2.7) (2.6)

Net cash (used in) / provided by financing activities (61.5) 16.6

6

505 505

126 125

248 249

69 65

16

3 6

FY2015 FY2016 Q1 FY1516 Q1 FY1617

Singapore Malaysia Indonesia

759 770

198 196

7597597596

Notes:Q1: Refers to the first(1st) quarter from 1 April to 30 JuneFY: Refers to the financial year from 1 April to 31 March

Sales by geography

Revenue

Revenue and EBIT margin

Revenue (S$m)

S$m

Sale of goods – cash/credit mix

Group

EBIT margin - %

759 770

198 196

FY2015 FY2016 Q1 FY1516 Q1 FY1617

6.1% 7.2% 7.9% 9.4%

64.6% 64.9% 61.3% 60.5%

35.4% 35.1% 38.7% 39.5%

FY 2015 FY 2016 Q1 FY1516 Q1 FY1617

Sale of goods - credit and earned service charge income %

Sale of goods - cash %

7

Product range focused on 4 key segments

• Major White Goods• Vision • Small appliances • Audio

• Mattresses• Bedroom furniture • Dining room furniture • Living room furniture • Home office products

• Computers • Accessories • Photography • Mobile

• Warranty sales • Other services

− Product replacement services

• Connect – telecommunications

subscription plans

Electrical Products FurnitureIT Products Services & Others

% of Q1 FY1617

sale of goods

Revenue – cash/credit mix

Singapore Malaysia

Notes:Q1: Refers to the first(1st) quarter from 1 April to 30 JuneFY: Refers to the financial year from 1 April to 31 March* Sales for Indonesia commenced in Q3 FY14/15.

Indonesia*

47.8% 27.7% 17.9% 6.6%

82.6% 83.1% 81.6% 77.7%

17.4% 16.9% 18.4% 22.3%

FY 2015 FY 2016 Q1 FY1516 Q1 FY1617

Sale of goods - credit and earned service charge income %

Sale of goods - cash %

27.3% 27.6% 23.4% 26.6%

72.7% 72.4% 76.6% 73.4%

FY 2015 FY 2016 Q1 FY1516 Q1 FY1617

Sale of goods - credit and earned service charge income %

Sale of goods - cash %

89.5% 72.2% 80.0% 68.1%

10.5%27.8%

20.0%31.9%

FY 2015 FY 2016 Q1 FY1516 Q1 FY1617

Sale of goods - credit and earned service charge income %

Sale of goods - cash %

8

Notes:Q1: Refers to the first(1st) quarter from 1 April to 30 JuneFY: Refers to the financial year from 1 April to 31 March1: Based on weighted average retail square footage and sale of goods from stores for each period, excluding sales from events held outside stores2: Like-for-like sales (net merchandise sales and current quarter/year service charge income generated) growth for a financial quarter/year is calculated based on stores which had been operating for the entire

quarter/year over that particular quarter/year and the entire same period over the preceding yearIndonesia – not significant

Operating metrics

Sales per sq. ft.1 Like-for-like sales growth2

SingaporeS$

MalaysiaMYR

Malaysia

Singapore

1,004 932

230 223

FY2015 FY2016 Q1 FY1516 Q1 FY1617

373

437

103 113

FY2015 FY2016 Q1 FY1516 Q1 FY1617

-3.5% -3.1% -3.3%

2.4%

-10.2%

-0.2%

-1.8%

2.5%

FY2015 FY2016 Q1 FY1516 Q1 FY1617

Exclude Corporate Sales Include Corporate Sales

Like-For-Like Sales Growth

-11.7%

7.8%9.4%

4.0%

-11.7%

17.6%

12.7%

6.9%

FY2015 FY2016 Q1 FY1516 Q1 FY1617

Exclude Corporate Sales Include Corporate Sales

Like-For-Like Sales Growth

9

Operating metrics

Gross profit and margin

Note:Q1: Refers to the first(1st) quarter from 1 April to 30 JuneFY: Refers to the financial year from 1 April to 31 March

249 253

68 71

32.8% 32.9%34.5%

36.1%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

FY2015 FY2016 Q1 FY1516 Q1 FY1617S$m

10

Earned service charge income

Singapore^Malaysia

Group

Notes:Q1: Refers to the first(1st) quarter from 1 April to 30 JuneFY: Refers to the financial year from 1 April to 31 March^ Excludes Net Sales from Home Lifestyle as there is no earned service charge income yet for Home LifestyleIndonesia – not significant

138 144

41 42

18.1% 18.7%

20.9% 21.3%

0

50

100

150

200

250

FY2015 FY2016 Q1 FY1516 Q1 FY1617

% of net sales

40 42

11 15

7.9%8.3% 9.1%

11.6%

FY2015 FY2016 Q1 FY1516 Q1 FY1617

% of net sales

97 100

30 27

39.3% 40.4%43.3%

41.0%

FY2015 FY2016 Q1 FY1516 Q1 FY1617

% of net sales

S$m

S$mS$m

11

Notes:Q1: Refers to the first(1st) quarter from 1 April to 30 JuneFY: Refers to the financial year from 1 April to 31 March1: “Others” include head office costs and other expenses2: EBITDA calculated as profit before tax add finance expense and depreciation and amortisation expense

Breakdown of expenses and EBITDA

S$m

Breakdown of expenses

EBITDA2 Segment result by geographical location3

3: Segment results are profit before other income, income tax and finance expense.

S$m

18

21 9.3%

10.8%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

Q1 FY1516 Q1 FY1617

16

17

18

19

20

21

22

Adjusted EBITDA EBITDA Margin

5 10

12

10

(2) (3)

15 17

Q1 FY1516 Q1 FY1617Singapore Malaysia Indonesia

17 15

10 12

9 9

6 6

5 5 0 1 4 2 3 3

7 7

61 60

Q1 FY1516 Q1 FY1617Others Depreciation & amortisation Bank charges and professional feesTracing and referencing Interest on loan Impairment loss on trade receivablesSalaries and wages Rental on operating leases Distribution and marketing

S$m

12

Delinquency rates and allowance for impairment loss on trade receivables

180+ days delinquency rates

Allowance for impairment loss on trade receivables

Singapore Malaysia

Credit book assets - Gross

S$m

Notes:Q1: Refers to the first(1st) quarter from 1 April to 30 JuneFY: Refers to the financial year from 1 April to 31 MarchIndonesia – not significant

�Note: PTCRI – not significant

�With global developments

remaining uncertain and local

economic conditions

challenging, we continue to be

diligent in our credit and

significantly strengthening our

collections resources and

efforts to step-up our focus on

managing delinquent accounts

as we anticipate some impact

to our portfolio impairment

562.1

590.8

565.1

611.2

FY 2015 FY 2016 Q1 FY1516 Q1 FY1617

7.1

6.5

7.2

6.1

3.4%

3.1%

3.4%

2.8%

1.8%

2.3%

2.8%

3.3%

3.8%

5.6

6.1

6.6

7.1

7.6

FY 2015 FY 2016 Q1 FY1516 Q1 FY1617

Allowances for impairment loss on trade receivables (S$m)% of trade receivables at balance sheet date

16.4

17.6 17.5

18.4

FY 2015 FY 2016 Q1 FY1516 Q1 FY1617

Allowances for impairment loss on trade receivables (S$m)

% of trade receivables at balance sheet date

Jul 07

Oct

07

Jan 0

8Apr

08

Jul 08

Oct

08

Jan 0

9Apr

09

Jul 09

Oct

09

Jan 1

0Apr

10

Jul 10

Oct

10

Jan 1

1Apr

11

Jul 11

Oct

11

Jan 1

2Apr

12

Jul 12

Oct

12

Jan 1

3Apr

13

Jul 13

Oct

13

Jan 1

4Apr

14

Jul 14

Oct

14

Jan 1

5Apr

15

Jul 15

Oct

15

Jan 1

6Apr

16

Jul 16

Malaysia Singapore

�Jun’16

7.2%

�Jul’07

15.8%

�Jun’16

3.6%

�Jul’07

4.8%

S$mS$m

13

Impairment loss on trade receivables charged to Income Statement

Singapore1 Malaysia

Notes:Q1: Refers to the first(1st) quarter from 1 April to 30 JuneFY: Refers to the financial year from 1 April to 31 March

Indonesia – not significant

8.2 7.2

1.8 1.2

4.0%

3.4%

0.9%

0.6%

FY 2015 FY 2016 Q1 FY1516 Q1 FY1617

Impairment loss charged to Income Statement (S$m)

Impairment loss on trade receivables as a percentage of average portfolio

16.5

12.1

4.3 4.3

4.8%

3.4%

1.2%1.1%

FY 2015 FY 2016 Q1 FY1516 Q1 FY1617

Impairment loss charged to Income Statement (S$m)

Impairment loss on trade receivables as a percentage of average portfolio

S$mS$m

14

Working capital management

Trade payable days Inventory days

Days Days

Notes:Q1: Refers to the first(1st) quarter from 1 April to 30 JuneFY: Refers to the financial year from 1 April to 31 March

62

67

60

62

64

66

68

70

Q1 FY1516 Q1 FY1617

65 65

60

62

64

66

68

70

72

Q1 FY1516 Q1 FY1617

15

Borrowings

1 CSPL Asset Securitisation : 1-mth SOR is hedged with Interest Rate Cap (strike rate of 2.5%) for notional amount of SGD70M

2 CMSB Syndicated Senior Loan: RM 267.5M is fixed at 6.35% p.a.

Facility Facility amount Interest rateAmount drawn down

as at 30-Jun 16

Available headroom

Multicurrency Medium Term Note (CAL)

S$ 500 milFixed 5.75% p.a.

S$ 75 milExpiry 15th Mar 2019

(Previous bond of S$125 mil fully redeemed on 3rd May

2016)

S$ 425 mil

Asset SecuritisationProgramme (CSPL)Revolving Period expiring: Jan 2019 (with possibility of 1 year extension at lenders’ option)

S$ 150 mil

1-mth SOR(1) + spread

(Spread reduced by more than 120 bps)

S$ 60.4 mil S$89.6 mil

Syndicated Senior Loan (CMSB) Revolving Period expiring: Feb 2018 (with possibility of 1 year extension at lenders’ option)

RM 535 mil

1-mth KLIBOR(2) + spread

(spread reduced from 2.6% to 2.1%)

RM 451 mil RM 84 mil

Term Loan (2 years)(PTCRI)Expiring: 2017 (Jan, Apr, July, Oct 2017 for each tranche respectively)

IDR 185.2 bil(4 tranches of IDR46.3 bil

each)

10.7% p.a. IDR185.2 bil 0

Term Loan (3 years)(PTCRI)Expiring: May 2019

IDR 78 bil(another IDR 22 bil cancelled as capex expenditure for KHI and BSD less than

original projection)

Bank’s Term Lending rate minus 3.15% p.a. (i.e. 12.15% p.a. based on

current Term Lending Rate)

IDR78bill0

16

� Executive summary

�Financial highlights

�Operational updates

17

NTUC LinkPoints Membership (Apr 2016)

� Courts collaborated with NTUC Link, one of the island’s largest consumer rewards programmes

� Courts HomeClub Elite Members earn LinkPoints when they spend with Courts

18

Courts Megastore Grand Relaunch (Aug 2016)

� Revamped range of small domestic appliances at new Markethall

� New repair and trade-in counter on Level 3

19

Courts Design Studio

� Extended Ciseern's exclusive partnership with Courts Design Studio � Will expand Ciseern's concept areas into three other stores, Courts Ang Mo Kio, Causeway Point and Toa Payoh by end Aug 2016

20

Malaysia new store makeovers in Q1 FY16/17

� Relaunched Courts Sri DamansaraMegastore on 4 Jun 2016 with tenant Decathlon in line with improving store productivity

� Relocated existing store to Courts Puchong Permaion 12 Jun 2016

21

Malaysia Lisa Surihani & Harith Iskander Brand Campaign

� Courts Memang senang! brand campaign launched 1 Apr 2016 with beloved local celebrities

22

Kota Harapan Indah Megastore Relaunch (Jun 2016)

� Courts Kotah Harapan Indah Megastore relaunched on 23 Jun 2016 to include existing anchor tenant Super Indo and new tenants Funworldand Bakmi RN

� Midnight shopping sales around launch organised for shoppers

23

�Appendix

24

Total comprehensive income for Q1 FY16/17 was an income of $4.2 million as compared to loss of $1.2 million in Q1

FY15/16. The improvement was mainly due to higher profit and lower translation loss arising from translating Malaysia’s

results and financial position into Singapore dollar (presentation currency) as at 30 June 2016.

�Income tax expense of $3.4 million for Q1 FY16/17 was based on taxable profit from Singapore and Malaysia operations

(Q1 FY15/16: $2.6 million). The increase in tax expense of $0.7 million mainly as a result of higher taxable profit from

Singapore operations, partially offset by income tax credits from Indonesia’s loss. The effective tax rate for Q1 FY16/17 was

higher than the Singapore statutory tax rate of 17.0% mainly due to higher tax rate in Malaysia and non-tax deductible

expenses.

Distribution and marketing expenses decreased from $16.6 million in Q1 FY15/16 to $15.0 million in Q1 FY16/17. As a percentage of revenue, distribution and marketing expenses decreases from 8.4% in Q1 FY15/16 to 7.6% in Q1 FY16/17. This decrease was primarily attributable to lower advertising cost and the continuous efforts in improving the management of warehouse and distribution cost in Malaysia.

Administrative expenses for the quarter were $38.8 million, an increase of $1.7 million from $37.1 million in Q1 FY15/16. The increase was mainly due to higher occupancy costs for new stores in Indonesia and higher accrued bonus. The increase was partially offset by lower impairment allowance of trade receivables and lower general expenses achieved from the continuous cost saving initiatives.

Finance expenses decreased by $1.2 million from $7.0 million in Q1 FY15/16 to $5.8 million in Q1 FY16/17 mainly due to lower exchange loss captured in Malaysia’s books with the settlement of its Singapore dollar denominated inter-company loan.

Unaudited Results for the quarter ended 30 June 2016

Group’s revenue of $196.3 million for Q1 FY16/17 were 0.9% or $1.8 million lower than Q1 FY15/16.

�Singapore revenue which contributed to 63.8% of the Group’s revenue in Q1 FY16/17 reported a marginal decrease of 0.3% compared to Q1 FY15/16.

�Malaysia revenue, which contributed to 33.1% of the Group’s revenue, reported 5.8% (in presentation currency) decrease but 1.7% (in RM currency) increase in Q1 FY16/17 as compared to Q1 FY15/16 mainly due to depreciation of RM currency against Singapore dollar.

�Indonesia revenue, which contributed to 3.1% of the Group’s revenue, registered a 66.1% (in presentation currency) and 106.6% (in Rupiah currency) increase in revenue as compared to Q1 FY15/16 mainly due to contributions from newly opened stores.

Gross profit increased by 3.7% or $2.6 million on the back of lower cost of sales. Gross profit margin

increased from 34.5% in Q1 FY15/16 to 36.1% in Q1 FY16/17. The increase in gross profit margin was mainly

due to an increase in merchandise margin.

Q1 Q1 %FY16/17 FY15/16 Change

S$'000 S$'000

Revenue 196,331 198,152 (0.9) Cost of sales (125,453) (129,832) 3.4 Gross profit 70,878 68,320 3.7

Other income and other gains - net 1,450 1,016 42.7

Expenses - Distribution and marketing (14,980) (16,554) 9.5 - Administrative (38,804) (37,103) (4.6) - Finance (5,766) (6,997) 17.6

Profit before income tax 12,778 8,682 47.2

Income tax expense (3,362) (2,638) (27.4)

Net profit 9,416 6,044 55.8

Group

25

�The decrease in net deferred income tax liabilities as at 30 June 2016 was mainly due to increase in deferred tax

assets arising from tax losses from Indonesia subsidiary.

�The total borrowings of $310.8 million (31 March 2016: $371.2 million) consist of fixed rate notes and term loan in

Courts Asia Ltd (“CAL”), the Asset Securitisation Programme 2016 in Singapore, Syndicated Senior Loan in Malaysia, and

term loans in Indonesia. The decrease was mainly due to the repayment of the S$125 million 3-year unsecured fixed rate

note in May 2016 and offset with additional drawdown of the Asset Securitisation Programme 2016 in Singapore.

�Derivative financial instruments represent the carrying amount of interest rate and currency swaps that the Group

has entered into to hedge its exposure to floating interest rate and exchange rate fluctuations on its bank borrowings.

The Group has adopted hedge accounting in respect of the derivative financial instruments it has entered into in

FY14/15.

�The fair value loss in Q1 FY16/17 resulted in a net liability position for derivative instrument mainly attributed to the

strengthening of Indonesia rupiah against Singapore dollar at the end of the financial reporting period.

�The Group’s inventories increased from $77.8 million to $87.0 million due to stocking up for Hari Raya festive season.

Unaudited Balance Sheet as at 30 June 2016

� The Group’s trade and other receivables (current and non-current) increased by $11.2 million from $539.5

million as at 31 March 2016 to $550.7 million as at 30 June 2016 due to higher credit sales.

� Allowance for impairment of trade receivables as at 30 June 2016 was $24.9 million as compared to $24.2 million as at

31 March 2016 representing 4.1% of trade receivables at both period ends.

� Cash and bank balances decreased by $85.9 million from $147.5 million as at 31 March 2016 to $61.6 million as at

30 June 2016 mainly as a result of repayment of the S$125 million 3-year unsecured fixed rate note in May 2016, cash

used in operating activities and fixed assets additions, which was offset with net proceeds from borrowings.

30 Jun 16 31 Mar 16S$'000 S$'000

ASSETSCurrent assetsCash and bank balances 61,605 147,509 Trade and other receivables 248,944 249,178 Inventories 87,019 77,815 Current income tax recoverable - 428

397,568 474,930

Non-current assetsDerivative financial instruments 589 825 Trade and other receivables 301,714 290,327 Investments in subsidiaries - - Property, plant and equipment 24,886 24,792 Intangible assets 23,388 23,580 Deferred income tax assets 6,155 4,968

356,732 344,492

Total assets 754,300 819,422

LIABILITIESCurrent liabilitiesDerivative financial instruments 621 544 Trade and other payables 129,055 139,293 Current income tax liabilities 5,349 3,506 Borrowings 10,863 131,036 Deferred income 2,825 2,083

148,713 276,462

Non-current liabilitiesDerivative financial instruments 155 272 Trade and other payables 524 469 Borrowings 299,893 240,151 Deferred income 2,156 2,614 Deferred income tax liabilities 7,928 7,590

310,656 251,096

Total liabilities 459,369 527,558

NET ASSETS 294,931 291,864

EQUITYShare capital 265,332 265,332 Treasury shares (17,239) (16,161) Other reserves (42,093) (36,822) Retained profit 88,931 79,515 Total equity 294,931 291,864

Group

�The Group’s trade and other payables (current and non-current) decreased by $10.2m million from $139.8 million as

at 31 March 2016 to $129.6 million as at 30 June 2016 mainly due to decrease of accrued operating expenses with the

payout of bonuses and payments to suppliers.

26

For the purposes of the consolidated statement of cash flows, the cash and cash equivalents comprise the following:-

Unaudited Statement of Cash Flows for the quarter ended 30 June 2016

30 Jun 16 30 Jun 15

S$'000 S$'000

Cash and bank balances 43,734 62,179Fixed deposits 17,871 57,011

61,605 119,190 Less: Fixed deposits pledged as securities for banking facilities (4,945) (3,126) Cash and cash equivalents per consolidated statemen t of cash flows 56,660 116,064

Q1 Q1FY16/17 FY15/16S$'000 S$'000

Cash flows from operating activities:Net profit 9,416 6,044 Adjustments for: Income tax expense 3,362 2,638 Depreciation and amortisation 3,362 3,277 Amortisation of deferred income (627) (590) Interest expense 5,217 5,115 Interest income (849) (651) Amortisation of borrowing costs 503 361 Loss on disposal of property, plant and equipment (net) 40 69 Share-based compensation 101 87 Foreign currency translation differences (241) (1,782) Operating cash flow before working capital changes 20,284 14,568

Changes in working capital Inventories (9,959) (3,933) Trade and other receivables (19,699) (23,977) Trade and other payables (9,359) 5,569 Cash used in operations (18,733) (7,773)Income tax paid (net) (1,787) (590)Net cash used in operating activities (20,520) (8,363)

Cash flows from investing activities Additions to property, plant and equipment (3,330) (2,928) Acquisition of intangible assets (219) (288) Proceeds from sale of property, plant and equipment 3 - Interest received 827 631 Net cash used in investing activities (2,719) (2,585)

Cash flows from financing activities Repayment of bond issued (125,120) - Repayment of finance lease liabilities (225) (408) Proceeds from term loan 7,883 5,192 Repayment of term loan (94) (115) Proceeds from syndicated senior loan 2,229 1,677 Proceeds from loan received on asset securitisation 58,378 15,804 Decrease / (Increase) in fixed deposits pledged as securities for banking facilities 794 (1,290) Purchase of treasury shares (1,232) (71) Interest paid (4,142) (4,139)Net cash (used in) / provided by financing activities (61,529) 16,650

Net (decrease) / increase in cash and cash equivalents (84,768) 5,702 Cash and cash equivalents as at beginning of financial period 141,770 112,383 Effects of currency translations on cash and bank balances (342) (2,021)

Cash and cash equivalents as at end of financial period 56,660 116,064

Group

27

�Q&A

To access the results presentation and briefing, please visit http://ir.courts.com.sg which will be available by 17 August 2016.