COURTS ASIA LIMITED UNAUDITED RESULTS FOR THE THIRD QUARTER ENDED 31 DECEMBER 2017 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

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1 1(a)(i) Statement of total comprehensive income (for the ) together with a comparative statement for the corresponding period of the immediately preceding financial year. Q3 Q3 % YTD YTD % FY17/18 FY16/17 Change FY17/18 FY16/17 Change (Restated*) (Restated*) S$'000 S$'000 S$'000 S$'000 Revenue 186, , , ,994 (1.8) Cost of sales (121,982) (119,732) (1.9) (353,225) (355,210) 0.6 Gross profit 64,796 65,902 (1.7) 196, ,784 (4.0) Other income and other gains/(losses) - net 1,558 1, ,131 3, Expenses - Distribution and marketing (13,661) (13,821) 1.2 (43,366) (43,796) Administrative (42,566) (41,579) (2.4) (127,110) (122,316) (3.9) - Finance (4,994) (5,254) 4.9 (15,114) (15,998) 5.5 Profit before income tax 5,133 6,432 (20.2) 15,133 26,284 (42.4) Income tax expense (1,622) (1,508) (7.6) (4,062) (6,533) 37.8 Net profit 3,511 4,924 (28.7) 11,071 19,751 (43.9) Q3 Q3 % YTD YTD % FY17/18 FY16/17 Change FY17/18 FY16/17 Change S$'000 S$'000 S$'000 S$'000 Net profit 3,511 4,924 (28.7) 11,071 19,751 (43.9) Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Currency translation differences arising from consolidation 3,431 (3,108) ,663 (8,880) Fair value (loss)/gain on hedging (6) 423 (101.4) (22) 260 (108.5) Total comprehensive income 6,936 2, ,712 11, n/m - not meaningful Note: * The Q3 FY16/17 comparative figures have been restated from what was previously announced in the Q3 FY16/17 announcement, to take into account (i) the retrospective adjustments arising from the adoption of FRS 115 Revenue From Contracts With Customers ( FRS 115 ) and (ii) reclassification of expense line items as detailed in Note 5 of Q4 FY16/17 announcement. 1

2 1(a)(ii) Breakdown and explanatory notes to the statement of total comprehensive income:- Q3 Q3 YTD YTD FY17/18 FY16/17 FY17/18 FY16/17 S$'000 S$'000 S$'000 S$'000 Profit before income tax was arrived at after charging/ (crediting): Depreciation and amortisation of property, plant and equipment and intangible assets 3,310 3,208 9,150 9,750 Amortisation of deferred income (575) (663) (1,781) (1,994) Impairment allowance on trade receivables 7,994 6,642 22,294 17,545 Other income and other (gains)/losses - net - Interest income (676) (533) (1,891) (2,032) - Loss on disposal of property, plant and equipment and intangible assets (net) Tracing and referencing income (304) (268) (854) (841) - Rental income (444) (252) (1,222) (874) - Change in fair value of derivative financial instruments 5 (68) Others (296) (184) (634) (516) (1,558) (1,184) (4,131) (3,610) Finance costs - Interest expense on borrowings 4,349 4,456 13,000 13,725 - Interest expense on finance lease liabilities Borrowing costs ,211 1,974 - Foreign exchange (gains) / losses - net (36) 189 (99) 284 4,994 5,254 15,114 15,998 Gross profit as a percentage of revenue 34.7% 35.5% 35.8% 36.6% Net profit as a percentage of revenue 1.9% 2.7% 2.0% 3.5% Net profit as a percentage of total equity 1.5% 2.3% 4.8% 9.1% 2

3 1(b)(i) Statement of financial position (for the issuer and ), together with a comparative statement as at the end of the immediately preceding financial year. Company 31 Dec Mar Dec Mar 17 ** S$'000 S$'000 S$'000 S$'000 ASSETS Current assets Cash and bank balances 76,888 98,728 25,313 32,948 Trade and other receivables 208, ,800 2,590 4,448 Deferred costs 8,331 8, Inventories 88,200 78, Current income tax recoverable 3, , ,592 27,903 37,396 Non-current assets Derivative financial instruments Trade and other receivables 296, ,246 4,563 4,632 Deferred costs 12,657 11, Investments in subsidiaries , ,145 Property, plant and equipment 20,941 20, Intangible assets 22,930 23,231 20,065 20,065 Deferred income tax assets 20,836 20, , , , ,853 Total assets 759, , , ,249 LIABILITIES Current liabilities Derivative financial instruments Trade and other payables 146, ,336 3,628 2,911 Deferred revenue 27,715 27, Current income tax liabilities 2,175 5, ,771 Borrowings Deferred income 2,740 2, , ,242 4,937 5,158 Non-current liabilities Derivative financial instruments Trade and other payables Deferred revenue 40,791 37, Borrowings 305, ,468 76,168 76,425 Deferred income 1,241 1, Deferred income tax liabilities 2,922 2,888 2,922 2, , ,275 79,090 79,274 Total liabilities 530, ,517 84,027 84,432 NET ASSETS 229, , , ,817 EQUITY Share capital 265, , , ,332 Treasury shares (19,082) (19,669) (19,082) (19,669) Other s (38,671) (44,350) (22,995) (23,033) Retained profits 21,647 17,217 27,938 31,187 Total equity 229, , , ,817 ** The 31 March 2017 comparative figures differs from the balances as previously announced in the Q4 FY16/17 announcement due to reclassification of trade and other receivables between current and non-current assets. 3

4 1(b)(ii) Aggregate amount of s borrowings and debt securities Amount repayable in one year or less, or on demand As at S$ 000 As at S$ 000 Secured Unsecured Secured Unsecured Amount repayable after one year As at S$ 000 As at S$ 000 Secured Unsecured Secured Unsecured 202, , , ,734 Details of any collateral The s borrowings of $305.7 million (31 March 2017: $304.0 million) consist of fixed rate notes and term loans in COURTS Asia Ltd ( CAL ), the Asset Securitisation Programme 2016 in Singapore, the Syndicated Senior Loan in Malaysia, and term loans in Indonesia. On 23 April 2013, a S$500 million Multicurrency Medium Term Note programme was established. A note issued on 2 May 2013 comprising S$125 million three-year unsecured fixed rate notes was repaid in May A new note was issued on 15 March 2016, comprising S$75 million three-year unsecured fixed rate notes due in March 2019, and is classified as non-current liability. The Asset Securitisation Programme 2016 (renewed in January 2016) is secured against the trade receivables of COURTS (Singapore) Pte Ltd ( CSPL ). CSPL has also provided a guarantee and indemnity in favour of the Senior Beneficiaries, The Hong Kong and Shanghai Banking Corporation Limited ( HSBC ), DBS Bank Ltd ( DBS ) and Oversea-Chinese Banking Corporation ( OCBC ), in respect of amounts payable under the Asset Securitisation Programme The amount drawn down as at 31 December 2017 was S$55.5 million. The Syndicated Senior Loan is secured by a fixed charge over the designated bank accounts of COURTS (Malaysia) Sdn Bhd ( CMSB ) and all credit balances in respect thereof, a debenture covering a fixed and floating charge over all the assets of CMSB (both present and future), an assignment over existing and future trade receivables and a corporate guarantee issued by CMSB. The amount drawn down as at 31 December 2017 was RM453 million (S$148.0 million). The term loans in PT COURTS Retail Indonesia ( PTCRI ) comprise a IDR78 billion (S$7.7 million) three-year term loan repayable in May 2019 secured in favour of HSBC and a IDR202.7 billion (S$20.0 million) term loan (refinanced in early January 2017) repayable from January 2020 secured in favour of DBS. Both term loans are secured by corporate guarantees from CAL. The term loan in CAL is a seven-year term loan from January 2015 with the original amount of US$2.38 million (S$3.2 million) to finance the Key Man Insurance for certain key management personnel. The facility is secured by way of first legal assignment of policies in favour of HSBC. 4

5 1(c) Consolidated statement of cash flows (for the ), together with a comparative statement for the corresponding period of the immediately preceding financial year. Q3 Q3 YTD YTD FY17/18 FY16/17 FY17/18 FY16/17 S$'000 S$'000 S$'000 S$'000 Cash flows from operating activities: Net profit 3,511 4,924 11,071 19,751 Adjustments for: Income tax expense 1,622 1,508 4,062 6,533 Depreciation and amortisation 3,310 3,208 9,150 9,750 Amortisation of deferred income (575) (663) (1,781) (1,994) Interest expense 4,350 4,458 13,002 13,740 Interest income (676) (533) (1,891) (2,032) Borrowing costs ,211 1,974 Loss on disposal of property, plant and equipment and intangible assets (net) Share-based compensation Changes in fair value of derivative financial instruments 5 (68) Foreign currency translation differences Operating cash flow before working capital changes 13,165 13,907 37,620 48,836 Changes in working capital - Inventories (3,332) 260 (8,562) (8,566) - Trade and other receivables 3,110 (9,137) (6,742) (39,196) - Deferred costs (87) (295) (1,164) (887) - Trade and other payables (10,880) 3,121 (3,446) 4,796 - Deferred revenue 213 1,127 2,569 3,442 Cash generated from operations 2,189 8,983 20,275 8,425 Income tax paid (net) (4,940) (2,017) (10,535) (5,880) Net cash (used in) / generated from operating activities (2,751) 6,966 9,740 2,545 Cash flows from investing activities Additions to property, plant and equipment (4,534) (2,352) (8,169) (7,111) Acquisition of intangible assets (206) (429) (731) (980) Proceeds from sale of property, plant and equipment Interest received ,880 2,008 Net cash used in investing activities (4,064) (2,249) (7,020) (6,068) Cash flows from financing activities Repayment of bond issue (125,120) Repayment of finance lease liabilities (6) (106) (68) (508) Proceeds from term loan ,894 Repayment of term loan (178) (118) (413) (348) (Repayment of) / proceeds from syndicated senior loan (1,709) (857) (418) 4,527 (Repayment of) / proceeds from loan on asset securitisation (1,971) (10,288) (3,863) 58,919 (Decrease) / increase in fixed deposits pledged as securities for banking facilities (651) 2,351 (122) 3,310 Purchase of treasury shares - (904) - (3,288) Payment of borrowing cost (437) (395) (1,460) (1,260) Interest paid (3,263) (3,737) (11,726) (12,830) Dividends paid - - (6,641) (6,671) Net cash used in financing activities (8,215) (14,054) (24,711) (75,375) Net decrease in cash and cash equivalents (15,030) (9,337) (21,991) (78,898) Cash and cash equivalents as at beginning of financial period 86,740 71,816 93, ,770 Effects of currency translation on cash and bank balances 145 (337) 29 (730) Cash and cash equivalents as at end of financial period 71,855 62,142 71,855 62,142 For the purposes of the consolidated statement of cash flows, the cash and cash equivalents comprise the following: 31-Dec-17 S$' Dec-16 S$'000 Cash and bank balances 49,045 47,912 Fixed deposits 27,843 16,659 76,888 64,571 Less: Fixed deposits pledged as securities for banking facilities (5,033) (2,429) Cash and cash equivalents per consolidated statement of cash flows 71,855 62,142 5

6 1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. Share capital Treasury Shares Share option Attributable to equity holders of the Currency translation Capital Hedging Retained profits Total equity S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 Balance at 1 April ,332 (19,669) 1,539 (51,159) 5,896 (626) 17, ,530 Treasury shares reissued (561) - (26) Share-based compensation Total comprehensive income / (loss) for the period ,663 - (22) 11,071 16,712 Dividends (6,641) (6,641) Balance at 31 December ,332 (19,082) 1,603 (45,496) 5,870 (648) 21, ,226 Balance at 1 October ,332 (19,103) 1,297 (48,927) 5,872 (642) 18, ,965 Treasury shares reissued - 21 (19) - (2) Share-based compensation Total comprehensive income / (loss) for the period ,431 - (6) 3,511 6,936 Balance at 31 December ,332 (19,082) 1,603 (45,496) 5,870 (648) 21, ,226 Share capital Treasury Shares Share option Currency translation Capital Hedging Retained profits Total equity S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 Balance at 1 April 2016, as previously reported 265,332 (16,161) 1,013 (42,788) 5,919 (966) 79, ,864 Impact of adoption of FRS 115 on previously reported s as at 1 April 2015 Impact of adoption of FRS 115 on previously reported results for the year ended 31 March 2016 Attributable to equity holders of the , (65,923) (64,715) , (13,447) (10,851) Balance at 1 April 2016, as restated 265,332 (16,161) 1,013 (38,984) 5,919 (966) ,298 Purchase of treasury shares - (3,288) (3,288) Treasury shares reissued (152) - (23) Share-based compensation Total comprehensive (loss) / income for the period, restated (8,880) ,751 11,131 Dividends (6,671) (6,671) Balance at 31 December 2016, as restated 265,332 (19,274) 1,233 (47,864) 5,896 (706) 13, ,842 Balance at 1 October 2016, as restated 265,332 (18,381) 1,092 (44,756) 5,896 (1,129) 8, ,355 Purchase of treasury shares - (904) (904) Treasury shares reissued - 11 (11) Share-based compensation Total comprehensive (loss) / income for the period, restated (3,108) ,924 2,239 Balance at 31 December 2016, as restated 265,332 (19,274) 1,233 (47,864) 5,896 (706) 13, ,842 6

7 Share capital Company Attributable to equity holders of the Company Treasury Shares Share option Capital Retained profits Total equity S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 Balance at 1 April ,332 (19,669) 1,539 (24,572) 31, ,817 Treasury shares reissued (561) (26) - - Share-based compensation Total comprehensive income for the period ,392 3,392 Dividends (6,641) (6,641) Balance at 31 December ,332 (19,082) 1,603 (24,598) 27, ,193 Balance at 1 October ,332 (19,103) 1,297 (24,596) 26, ,870 Treasury shares reissued - 21 (19) (2) - - Share-based compensation Total comprehensive income for the period Balance at 31 December ,332 (19,082) 1,603 (24,598) 27, , Balance at 1 April ,332 (16,161) 1,013 (24,549) 29, ,359 Purchase of treasury shares - (3,288) (3,288) Treasury shares reissued (152) (23) - - Share-based compensation Total comprehensive income for the period ,200 7,200 Dividends (6,671) (6,671) Balance at 31 December ,332 (19,274) 1,233 (24,572) 30, ,972 Balance at 1 October ,332 (18,381) 1,092 (24,572) 27, ,450 Purchase of treasury shares - (904) (904) Treasury shares reissued - 11 (11) Share-based compensation Total comprehensive income for the period ,274 2,274 Balance at 31 December ,332 (19,274) 1,233 (24,572) 30, ,972 7

8 1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buybacks, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State the number of shares that may be issued on conversion of all the outstanding convertibles, if any, against the total number of issued shares excluding treasury shares and subsidiary holdings of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. State also the number of shares held as treasury shares and the number of subsidiary holdings, if any, and the percentage of the aggregate number of treasury shares and subsidiary holdings held against the total number of shares outstanding in a class that is listed as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. There are no changes in the Company s share capital since the end of the previous reported period. The Company does not have any outstanding convertibles and has no subsidiary holdings as at 31 December 2017 and 31 December Treasury shares During the period, 49,283 treasury shares at fair value of $0.02 million were awarded pursuant to Performance Share Plan and for Director Fees. The Company did not conduct any share buy-back during this period. As at 31 December 2017, there are 44,894,340 shares (31 December 2016: 45,377,056) held as treasury shares. The total number of issued shares (excluding treasury shares) is 515,105,660 (31 December 2016: 514,622,944). The treasury shares held represents 8.7% (31 December 2016: 8.8%) of the total number of issued shares (excluding treasury shares). 1(d)(iii) To show the total number of issued shares excluding treasury shares as at end of the current financial period and as at the end of the immediately preceding year. 31 Dec Mar 2017 Total number of issued shares excluding treasury shares 515,105, ,722,888 1(d)(iv) A statement showing all sales, transfers, cancellation and/or use of treasury shares as at the end of the current financial period reported on. Q3 FY17/18 Number of treasury shares reissued pursuant to the Performance Share Plan and Director Fees 49, Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice. The figures have not been audited or reviewed by the s auditors. 3. Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter). Not applicable. 4. Whether the same accounting policies and methods of computation as in the issuer s most recently audited annual financial statements have been applied. The accounting policies adopted and methods of computation applied are consistent with those used in the recently audited financial statements of the for the financial year ended 31 March

9 5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change. The Q3 FY16/17 comparative figures have been restated from what was previously announced in the Q3 FY16/17 announcement, to take into account (i) the retrospective adjustments arising from the adoption of FRS 115 Revenue From Contracts With Customers ( FRS 115 ) and (ii) reclassification of expense line items as detailed in Note 5 of Q4 FY16/17 announcement. 6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. Q3 FY17/18 Q3 FY16/17 YTD Dec17 FY17/18 (a) Basic earnings per share (cents) (b) Fully diluted earnings per share (cents) YTD Dec16 FY16/17 Explanatory notes Basic earnings per share is calculated by dividing the 's profit after tax attributable to shareholders by the weighted average number of ordinary shares (excluding treasury shares) during the three months ended 31 December 2017 and the same period last year were 515,132,754 and 515,217,884 respectively. The weighted average ordinary shares for the nine months ended 31 December 2017 and the same period last year were 514,446,330 and 517,846,944 respectively. Diluted earnings per share is calculated by dividing the 's profit after tax attributable to shareholders by the weighted average number of ordinary shares (excluding treasury shares and adjusting for the dilutive effect of performance shares) during the three months ended 31 December 2017 and the same period last year were 524,954,054 and 519,783,884 respectively. The weighted average ordinary shares for the nine months ended 31 December 2017 and the same period last year were 524,267,630 and 522,412,944 respectively. 7. 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:- (a) current financial period reported on; and (b) immediately preceding financial year. Company 31 Dec Mar Dec Mar 17 Net asset value per ordinary share (cents)

10 8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group s business. It must include a discussion of the following:- (a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and (b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. Income Statement Period Ended 31 December 2017 Revenue The s revenue of $186.8 million for Q3 FY17/18 was 0.6% or $1.1 million higher than Q3 FY16/17. Singapore revenue, which contributed 72.0% of the s revenue in Q3 FY17/18, reported an increase of 8.0% compared to Q3 FY16/17, mainly due to higher sales of goods from the re-launch of its online platform and the re-opening of COURTS Megastore at Tampines in November Malaysia revenue, which contributed to 24.3% of the s revenue, reported a 15.9% decrease (in presentation currency and in RM currency) in Q3 FY17/18 as compared to Q3 FY16/17 mainly due to lower sales of goods and earned service charge income. Indonesia revenue, which contributed to 3.7% of the s revenue, registered a 4.1% (in presentation currency) decrease but 1.8% (in Rupiah currency) increase in Q3 FY17/18 compared to Q3 FY16/17 mainly due to contributions from newly opened stores. Gross profit Gross profit for Q3 FY17/18 decreased by 1.7% or $1.1 million, resulting mainly from lower gross profit margin compared to Q3 FY16/17. Gross profit margin decreased from 35.5% in Q3 FY16/17 to 34.7% in Q3 FY17/18 mainly due to lower merchandise margin in Singapore and offset by higher gross profit margins in Malaysia and Indonesia. Other income and other gains/(losses) - net Other income and other gains/(losses) - net increased from $1.2 million in Q3 FY16/17 to $1.6 million in Q3 FY17/18 mainly due to higher rental income and interest income. Distribution and marketing expenses Distribution and marketing expenses decreased by 1.2% to $13.7 million in Q3 FY17/18. This decrease is mainly due to lower advertising cost in Malaysia and is partially offset by higher branch salaries for newly opened stores in Indonesia. As a percentage of revenue, distribution and marketing expenses were stable at 7.3% in Q3 FY17/18. Administrative expenses Administrative expenses increased by $1.0 million to $42.6 million in Q3 FY17/18 from $41.6 million in Q3 FY16/17. The increase was mainly due to higher allowance for impairment of trade receivables and offset by lower branch occupancy costs in Singapore and Malaysia. Finance expenses Finance expenses decreased by S$0.3 million to $5.0 million in Q3 FY17/18 from $5.3 million in Q3 FY16/17 mainly due to lower interest expenses in Indonesia. 10

11 Income tax expenses Income tax expenses increased slightly by $0.1 million to $1.6 million in Q3 FY17/18 from $1.5 million in Q3 FY16/17. This was mainly due to reversal of deferred income tax assets and offset by lower taxable profits. Total comprehensive income Total comprehensive income for Q3 FY17/18 was $6.9 million as compared to $2.2 million in Q3 FY16/17 mainly due to an improvement in the currency translation differences arising from consolidation on the translation of Malaysia s results and financial position into Singapore dollar (presentation currency) as at 31 December 2017 due to strengthening of Malaysia ringgit against the Singapore dollar for the period ended 31 December 2017 as compared to a translation loss in the corresponding period of the immediately preceding financial year. The increase is partially offset by lower net profit for the current quarter compared to the corresponding period in the prior year. Balance Sheet As at 31 December 2017 Trade and other receivables The s trade and other receivables (current and non-current) increased by $18.0 million to $505.1 million as at 31 December 2017 from $487.0 million as at 31 March 2017 due to credit sales in the first nine months of FY17/18. Allowance for impairment of trade receivables as at 31 December 2017 was $30.1 million, representing 4.9% of gross trade receivables, as compared to $26.1 million as at 31 March 2017 representing 4.3% of gross trade receivables. Inventories The s inventories increased to $88.2 million as at 31 December 2017 from $78.8 million as at 31 March 2017 mainly due to expansion of product ranges post re-opening of COURTS Megastore at Tampines. Deferred costs Deferred costs relate to the incremental costs incurred by the to obtain or fulfil other services contracts which are capitalised as assets. The deferred costs balance would be amortised and recognised as expenses on a basis consistent with the revenue recognition of the other services to which the costs relate. Costs which are not incremental to the other services contracts are expensed as incurred. Total deferred costs increased to $21.0 million as at 31 December 2017 from $19.6 million as at 31 March 2017 due to sales of other services during the period. Derivative financial instruments Derivative financial instruments represent the carrying amount of interest rate cap and currency swaps that the has entered into to hedge its exposure to floating interest rate and exchange rate fluctuations on its bank borrowings. The has adopted hedge accounting in respect of the currency swaps. The derivative financial instruments is in a net asset position with fair value gain in first nine months of FY17/18 mainly attributed to the strengthening of Singapore dollar against Indonesia rupiah during the financial reporting period. 11

12 Borrowings The total borrowings of $305.7 million as at 31 December 2017 remained consistent compared to $304.0 million as at 31 March The total borrowings mainly consist of S$75 million three-year unsecured fixed rate notes and term loans in COURTS Asia Ltd ( CAL ), the Asset Securitisation Programme 2016 in Singapore, Syndicated Senior Loan in Malaysia, and term loans in Indonesia. Deferred revenue Deferred revenue relates to unearned revenue on other services contracts for which the other services have yet to be rendered. The deferred revenue balance would be recognised as revenue as the related services are rendered. Total deferred revenue increased to $68.5 million as at 31 December 2017 from $64.8 million as at 31 March 2017 due to sales of other services during the financial period. Deferred income tax assets / liabilities net The slight increase in net deferred income tax assets as at 31 December 2017 was mainly due to the recognition of tax losses from Indonesia subsidiary. Cash and bank balances Cash and bank balances decreased by $21.8 million to $76.9 million as at 31 December 2017 from $98.7 million as at 31 March The decrease is mainly as a result of the payment for additions to fixed assets, dividends and interest expenses. 9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. Statements / plans outlined previously (as per note 10 of Q2 FY17/18 announcement) have been completed or are on track as planned. 12

13 10. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. Advance estimates from Singapore s Ministry of Trade and Industry show that the Republic s economy recorded a 3.1% growth on a year-on-year basis in the fourth quarter of 2017, easing from the 5.4% growth in the previous quarter 1. Retail sales experienced a growth of 4.6% in December, compared to the previous year according to the Retail Sales Index 2. After three years of falling prices, analysts forecasts for Singapore s property market's turnaround range between 3 15% for , which, in turn, should translate into demand for furniture and household appliances in the medium term. Noting these encouraging signs, COURTS Asia will continue to invest in growth areas, including the enhancement of its omni-channel customer experience. The Malaysian economy grew at 6.2% in the third quarter of 2017, according to Bank Negara Malaysia 4. However, this did not translate to growth in the Malaysia retail industry with sales contracting 1.1% in the third quarter, and a further downward revision of the annual growth forecast for Malaysia retail industry from 3.7 to 2.2% in 2017 by the Malaysia Retailers Association 5. Furthermore, the Ministry of Domestic Trade, Co-operatives and Consumerism in Malaysia gazetted the Consumer Protection (Credit Sale) Regulations 2017 on 19 October 2017 which came into operation on 1 January This includes the capping of interest rates at 15% per annum 7. The Company is in compliance with the new regulations and will closely monitor the business to determine the optimum store footprint in the country. COURTS Asia is in the midst of reviewing the closure of under-performing stores in Malaysia. Indonesia s Ministry of Finance estimated that economic growth for 2017 was 5.05%, lower than the 5.2% initially projected 8. This follows on the back of weak private consumption, which accounts for about half of Indonesia s GDP, which led to the economy growing slightly lower than expected in the third quarter of 2017, expanding 5.06% from a year earlier 9. On a brighter note, the central bank of Indonesia s Retail Sales Survey noted that the country s retail sales rose 2.5% year-on-year in November And while the respondents predicted slow sales going into 2018 in line with seasonal trends, they expect sales to rebound ahead of the Muslim fasting month of Ramadan. Overall, while the economic landscape and retail environment in the region is expected to remain slightly muted in the short term, COURTS Asia will focus on driving long-term profitability by managing cost and productivity and investing in growth areas. 1 Singapore s GDP Grew by 3.1 Per Cent in the Fourth Quarter of 2017 Ministry of Trade and Industry, 2 January Car, tech products lift December retail sales The Business Times, 13 January Property market finally on the upturn The Straits Times, 4 January Economic and financial developments in Malaysia in the third quarter of 2017 Bank Negara Malaysia, 17 November Malaysia retail sales down 1.1% in Q3 The Star Online, 7 December Consumer Protection (Credit Sale) Regulations 2017 Attorney General s Chambers of Malaysia, 19 October Parliament: Maximum Interest Rate On Credit Sales To Be Enforced On Jan 1, 2018 Bernama.com, 2 November No Fanfare for Indonesia as Economy Hits Trillion-Dollar Mark Bloomberg, 3 January Indonesia's Q3 GDP growth misses forecasts at 5.06% The Straits Times, 7 November Retail Sales Survey November 2017 Bank Indonesia, 16 January

14 11. Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on? None. (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? None. (c) Date payable Not applicable. (d) Books closure date Not applicable. 12. If no dividend has been declared/recommended, a statement to that effect. No dividend has been declared for the third quarter ended 31 December Interested Person Transactions There was no interested person transactions ( IPTs ) during the period ended 31 December The Company has not obtained a general mandate for IPTs from the shareholders. 14. Use of proceeds from the Company s initial public offering A total of $38.9 million has been invested in PT COURTS Retail Indonesia ( PTCRI ) from the date of its incorporation up to 31 December The balance of the proceeds has been placed in short-term deposits with banks. The Board has decided that the balance of the proceeds will be re-allocated to use for future investments and expansions. 15. Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rule 704(11) in the format below. If there are no such persons, the issuer must make an appropriate negative statement There was no person occupying a managerial position in the who is a relative of a director or chief executive officer or substantial shareholder of the. 16. Confirmation pursuant to Rule 705(5) of the Listing Manual On behalf of the Board of Directors, we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the Board of Directors which may render the financial statements for the period ended 31 December 2017 to be false or misleading. 17. Confirmation that the issuer has procured undertakings from all its directors and executives officers under Rule 720(1) The Company confirms that it has procured undertakings from all its Directors and executive officers in the format as set out in Appendix 7.7 under Rule 720(1) of the SGX-ST Listing Manual. 14

15 For and on behalf of the Board of Directors of COURTS Asia Limited Terence Donald O Connor Chief Executive Officer 13 February 2018 Kee Kim Eng Chief Financial Officer 15