COURTS ASIA LIMITED UNAUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2016 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. Q4 Q4 % YTD Mar 16 YTD Mar 15 % FY15/16 FY14/15 Change FY15/16 FY14/15 Change S$'000 S$'000 S$'000 S$'000 Revenue 181, ,900 (6.0) 770, , Cost of sales (123,080) (127,901) 3.8 (517,268) (509,603) (1.5) Gross profit 58,249 64,999 (10.4) 253, , Other income and other gains / (losses) - net 819 1,380 (40.7) 3,568 4,795 (25.6) Expenses - Distribution and marketing (13,481) (13,500) 0.1 (57,305) (59,513) Administrative (34,766) (38,066) 8.7 (144,280) (147,815) Finance (5,425) (6,384) 15.0 (25,662) (24,497) (4.8) Profit before income tax 5,396 8,429 (36.0) 29,420 21, Income tax expense (1,214) (1,874) 35.2 (9,142) (4,554) (100.7) Net profit 4,182 6,555 (36.2) 20,278 17, Q4 Q4 % YTD Mar 16 YTD Mar 15 % FY15/16 FY14/15 Change FY15/16 FY14/15 Change S$'000 S$'000 S$'000 S$'000 Net profit 4,182 6,555 (36.2) 20,278 17, Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Currency translation differences 8,107 (2,910) n/m (12,583) (6,303) (99.6) Fair value loss on hedging reserve (891) (936) 4.8 (30) (936) 96.8 Total comprehensive income 11,398 2,709 n/m 7,665 10,123 (24.3) 1

2 1(a)(ii) Breakdown and explanatory notes to the statement of total comprehensive income:- Q4 Q4 YTD Mar 16 YTD Mar 15 FY15/16 FY14/15 FY15/16 FY14/15 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 3,385 3,391 13,462 13,838 Amortisation of deferred income (726) (766) (2,598) (3,378) Impairment allowance on trade receivables 3,298 5,979 19,480 24,764 Other income and other (gains) / losses - net - Interest income (556) (540) (2,484) (2,634) - Loss on disposal of property, plant and equipment (net) Change in fair value of derivative financial instruments - (7) - (55) - Rental income (299) (324) (1,038) (1,463) - Others (257) (510) (622) (660) (819) (1,380) (3,568) (4,795) Finance costs - Interest expense on borrowings 5,235 5,019 21,323 20,854 - Interest expense on finance lease liabilities Amortisation of borrowing cost ,686 1,733 - Foreign exchange (gains)/losses - net (218) 866 2,594 1,808 5,425 6,384 25,662 24,497 Gross profit as a percentage of revenue 32.1% 33.7% 32.9% 32.8% Net profit as a percentage of revenue 2.3% 3.4% 2.6% 2.3% Net profit as a percentage of total equity 1.4% 2.2% 6.9% 5.8% at the end of financial period / year 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 Mar Mar Mar Mar 15 S$'000 S$'000 S$'000 S$'000 ASSETS Current assets Cash and bank balances 147, ,219 77,489 18,620 Trade and other receivables 249, ,062 75,963 49,128 Inventories 77,815 83, Current income tax recoverable 428 3, , , ,452 67,748 Non-current assets Derivative financial instruments Trade and other receivables 290, ,309 23,611 78,932 Investments in subsidiaries , ,114 Property, plant and equipment 24,792 26, Intangible assets 23,580 24,531 20,065 20,065 Deferred income tax assets 4,968 2, , , , ,111 Total assets 819, , , ,859 LIABILITIES Current liabilities Derivative financial instruments Trade and other payables 139, ,213 5,391 3,406 Current income tax liabilities 3,506 4,011 2,131 2,474 Borrowings 131,036 1, , Deferred income 2,083 2, , , ,966 6,344 Non-current liabilities Derivative financial instruments Trade and other payables Borrowings 240, ,550 76, ,275 Deferred income 2,614 2, Deferred income tax liabilities 7,590 4,057 2,920 3, , ,642 79, ,558 Total liabilities 527, , , ,902 NET ASSETS 291, , , ,957 EQUITY Share capital 265, , , ,332 Treasury shares (16,161) (10,348) (16,161) (10,348) Other reserves (36,822) (24,298) (23,536) (23,625) Retained profit 79,515 66,169 29,724 26,598 Total equity 291, , , ,957 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 6, ,964 1,650 - Amount repayable after one year As at S$ 000 As at S$ 000 Secured Unsecured Secured Unsecured 165,683 74, , ,495 Details of any collateral The s borrowings of $371.2 million (31 March 2015: $329.2 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 loan in Indonesia. On 23 April 2013, a S$500 million Multicurrency Medium Term Note programme was established. A note was issued on 2 May 2013 comprising of S$125 million 3-year unsecured fixed rate notes due in May 2016 and is classified as a current liability. New notes were issued on 16 March 2016 comprising of S$75 million 3-year unsecured fixed rate notes due in March The Asset Securitisation Programme 2016 (renewed in January 2016) is secured against the trade receivables of Courts (Singapore) Pte Ltd ( CSL ). CSL has also provided a guarantee and indemnity in favour of the Senior Beneficiary, The Hong Kong and Shanghai Banking Corporation Limited (HSBC), DBS Bank Ltd (DBS) and Oversea-Chinese Banking Corporation, in respect of amounts payable under the Asset Securitisation Programme The Syndicated Senior Loan is secured by a fixed charge over the designated bank accounts of Courts (Malaysia) Sdn Bhd ( CMB ) and all credit balances in respect thereof, a debenture covering a fixed and floating charge over all the assets of CMB (both present and future), an assignment over existing and future trade receivables and corporate guarantee issued by CMB. The term loan in Indonesia comprises of a S$20 million 2-year term loan secured by a Corporate Guarantee from CAL in favour of DBS. The term loan in CAL is a 7-year term loan 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 an assignment of the Jade Global Insurance 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. Q4 Q4 YTD Mar 16 YTD Mar 15 FY15/16 FY14/15 FY15/16 FY14/15 S$'000 S$'000 S$'000 S$'000 Cash flows from operating activities: Net profit 4,182 6,555 20,278 17,362 Adjustments for: Income tax expense 1,214 1,874 9,142 4,554 Depreciation and amortisation 3,385 3,391 13,462 13,838 Amortisation of deferred income (726) (766) (2,598) (3,378) Interest expense 5,245 5,039 21,382 20,956 Interest income (556) (540) (2,484) (2,634) Amortisation of borrowing costs ,686 1,733 Loss on disposal of property, plant and equipment (net) Share-based compensation (57) (33) Changes in fair value of derivative financial instruments - (7) - (55) Foreign currency translation differences 3,385 (260) (2,005) (444) Operating cash flow before working capital changes 16,763 15,733 59,825 52,257 Changes in working capital Inventories 1,335 1,207 3,545 4,660 Trade and other receivables 3,633 (971) (52,305) (29,479) Trade and other payables 13,037 (28) 24,715 (3,714) Cash generated from operations 34,768 15,941 35,780 23,724 Income tax paid (net) (1,811) (157) (6,354) (5,965) Net cash generated from operating activities 32,957 15,784 29,426 17,759 Cash flows from investing activities Additions to property, plant and equipment (3,620) (801) (11,265) (11,317) Acquisition of intangible assets (682) (1,511) (1,146) (2,293) Proceeds from sale of property, plant and equipment Interest received ,406 2,592 Net cash used in investing activities (3,760) (1,669) (9,995) (10,587) Cash flows from financing activities Proceeds from bond issue 74,468-74,468 - Repayment of finance lease liabilities (207) (922) (1,242) (855) Additions to finance lease liabilities Proceeds from term loan - 8,156 14,699 8,156 Repayment of term loan (322) - (472) - Proceeds from /(repayment of) syndicated senior loan 10,749 (1,079) 30,423 9,993 (Repayment of)/proceeds from loan received on asset securitisation (58,577) 781 (69,138) 6,579 (Increase)/decrease in fixed deposits pledged as securities for banking fac (1,383) 4,830 (3,903) 3,881 Purchase of treasury shares (853) (3,077) (6,110) (8,140) Interest paid (3,540) (3,459) (18,700) (18,400) Dividend paid - - (6,932) (4,224) Net cash provided by / (used in) financing activities 20,335 5,782 13,093 (2,824) Net increase in cash and cash equivalents 49,532 19,897 32,524 4,348 Cash and cash equivalents as at beginning of financial period / year 90,813 92, , ,234 Effects of currency translations on cash and bank balances 1,425 (456) (3,137) (1,199) Cash and cash equivalents as at end of financial period / year 141, , , ,383 For the purposes of the consolidated statement of cash flows, the cash and cash equivalents comprise the following: 31 Mar Mar 15 S$'000 S$'000 Cash and bank balances 72,712 79,998 Fixed deposits 74,797 34, , ,219 Less: Fixed deposits pledged as securities for banking facilities (5,739) (1,836) Cash and cash equivalents per consolidated statement of cash flows 141, ,383 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 Attributable to equity holders of the Share option reserve Currency translation reserve Capital reserve Hedging reserve Retained profits Total equity $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 April ,332 (10,348) 881 (30,205) 5,962 (936) 66, ,855 Purchase of treasury shares - (6,110) (6,110) Treasury shares reissued (254) - (43) - - Share-based compensation Total comprehensive income for the year (12,583) - (30) 20,278 7,665 Dividends (6,932) (6,932) Balance at 31 March ,332 (16,161) 1,013 (42,788) 5,919 (966) 79, ,864 Balance at 1 January ,332 (15,322) 1,080 (50,895) 5,923 (75) 75, ,376 Purchase of treasury shares - (853) (853) Treasury shares reissued - 14 (10) - (4) Share-based compensation - - (57) (57) Total comprehensive income for the period ,107 - (891) 4,182 11,398 Balance at 31 March ,332 (16,161) 1,013 (42,788) 5,919 (966) 79, , Balance at 1 April ,332 (2,544) 855 (23,902) 6,016-53, ,788 Purchase of treasury shares - (8,140) (8,140) Treasury shares reissued (282) - (54) Share-based compensation Total comprehensive income for the year (6,303) - (936) 17,362 10,123 Dividends (4,224) (4,224) Balance at 31 March ,332 (10,348) 881 (30,205) 5,962 (936) 66, ,855 Balance at 1 January ,332 (7,281) 923 (27,295) 5,963-59, ,256 Purchase of treasury shares - (3,077) (3,077) Treasury shares reissued - 10 (9) - (1) Share-based compensation - - (33) (33) Total comprehensive income for the period (2,910) - (936) 6,555 2,709 Balance at 31 March ,332 (10,348) 881 (30,205) 5,962 (936) 66, ,855 6

7 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 Company Attributable to equity holders of the Company Treasury Shares Share option reserve Capital reserve Retained profits Total equity $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 April ,332 (10,348) 881 (24,506) 26, ,957 Purchase of treasury shares - (6,110) (6,110) Treasury shares reissued 297 (254) (43) - Share-based compensation Total comprehensive income for the year ,058 10,058 Dividends (6,932) (6,932) Balance at 31 March ,332 (16,161) 1,013 (24,549) 29, ,359 Balance at 1 January ,332 (15,322) 1,080 (24,545) 27, ,714 Purchase of treasury shares - (853) (853) Treasury shares reissued - 14 (10) (4) - - Share-based compensation - - (57) - - (57) Total comprehensive income for the period ,555 2,555 Balance at 31 March ,332 (16,161) 1,013 (24,549) 29, , Balance at 1 April ,332 (2,544) 855 (24,452) 18, ,773 Purchase of treasury shares - (8,140) (8,140) Treasury shares reissued (282) (54) - - Share-based compensation Total comprehensive income for the year ,240 12,240 Dividends (4,224) (4,224) Balance at 31 March ,332 (10,348) 881 (24,506) 26, ,957 Balance at 1 January ,332 (7,281) 923 (24,505) 23, ,016 Purchase of treasury shares - (3,077) (3,077) Treasury shares reissued - 10 (9) (1) - - Share-based compensation - - (33) - - (33) Total comprehensive income for the period ,051 3,051 Balance at 31 March ,332 (10,348) 881 (24,506) 26, ,957 7

8 1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, 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 also the number of shares that may be issued on conversion of all the outstanding convertibles as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares 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. There were no new shares issued in the twelve months ended 31 March Treasury shares During the year, the Company purchased 16,329,200 of its own shares for a total consideration of S$6.1 million by way of market acquisition. In the same period, 666,006 treasury shares at fair value of $0.25 million were awarded pursuant to Performance Share Plan and for Director Fees. As at 31 March 2016, there are 37,307,654 shares held as treasury shares. The total number of issued shares excluding treasury shares is 522,692,346 (31 March 2015: 538,355,540). 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 Mar Mar 2015 Total number of issued shares excluding treasury shares 522,692, ,355,540 1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on. 31 Mar Mar 2015 Number of treasury shares reissued pursuant to Performance Share Plan and Director fees 666, , 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 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. Not applicable. 8

9 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. Q4 Q4 YTD Mar16 YTD Mar15 FY15/16 FY14/15 FY15/16 FY14/15 (a) Basic earnings per share (cents) (b) Fully diluted earnings per share (cents) Explanatory notes Basic earnings per share is calculated by dividing the 's profit after tax attributable to shareholders by the weighted average ordinary shares during the three months ended 31 March 2016 and the same period last year of 523,926,784 and 540,280,393 respectively. The weighted average ordinary shares for the twelve months ended 31 March 2016 and the same period last year were 530,377,235 and 550,168,586 respectively. In 2013, the Company granted certain key management personnel Courts Share Appreciation Rights ( SAR ) to motivate them to drive the long term success of the Company and to enhance shareholder returns. Under the SAR plan, each SAR represents the right to receive fully paid ordinary shares of the Company with zero exercise price. In the event that the market value of the share at the point of time of exercise is equal or less than the grant value, no shares will be awarded to the key management personnel. Estimated total number of outstanding shares under the SAR plan as at 31 March 2016 is zero. In November 2013, the Company granted Courts Asia FY13/14 Strategic Deferred Share Award ( DSA ) under Courts Asia Performance Share Plan to Selected Top Management. As at 31 March 2016, an award of 2,751,600 shares has been granted (31 March 2015: 2,508,400 shares) and each share represents a fully paid share. Out of the total award, 2,362,100 shares (31 March 2015: 1,811,200 shares) has been vested and awarded through reissuance of Treasury Shares. 204,800 shares (31 March 2015: 204,800 shares) have been forfeited to date and the total outstanding shares under DSA plan as at 31 March 2016 is 184,700 (31 March 2015: 492,400). In June 2015, the Company granted the 1 st Performance Share Award to the Executive Directors and key management personnel pursuant to the Long Term Incentive Plans. Shares will vest to the participant after the end of each relevant vesting period provided certain performance conditions are achieved in accordance with the rules of the Plan. No share has been vested as at 31 March Diluted earnings per share is calculated by dividing the 's profit after tax attributable to shareholders by the weighted average ordinary shares during the three months ended 31 March 2016 and the same period last year of 528,022,784 and 540,772,793 respectively. The weighted average ordinary shares for the twelve months ended 31 March 2016 and the same period last year were 534,473,235 and 550,660,986 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-Mar Mar Mar Mar-15 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 Year Ended 31 March 2016 Revenue The s revenue of $770.4 million for FY15/16 were 1.6% or $11.8 million higher than FY14/15. Singapore revenue which contributed to 65.6% of the s revenue in FY15/16 reported a marginal increase of 0.1% compared to FY14/15. Malaysia revenue, which contributed to 32.3% of the s revenue, reported 0.5% (in presentation currency) and 11.7% (in RM currency) increase in FY15/16 as compared to FY14/15 mainly due to corporate sales for digital products and higher service charge income. Indonesia revenue, which contributed to 2.1% of the s revenue, registered a 147.5% (in presentation currency) and 157.3% (in Rupiah currency) increase in revenue as compared to FY14/15 mainly due to additional new store openings. Gross profit Gross profit increased by 1.7% or $4.2 million and gross profit margin increased marginally from 32.8% in FY14/15 to 32.9% in FY15/16. This was mainly due to higher earned service charge income resulting from higher credit sales and partially offset by lower gross profit margin from electrical category and higher corporate sales which carry a lower margin. Other income and other gains - net Other income and other gains - net decrease from $4.8 million in FY14/15 to $3.6 million in FY15/16. The decrease was mainly due to loss on disposal of assets and lower rental income. Distribution and marketing expenses Distribution and marketing expenses decreased from $59.5 million in FY14/15 to $57.3 million in FY15/16. As a percentage of revenue, distribution and marketing expenses is 7.4% in FY15/16 (FY14/15: 7.8%). This was primarily attributable to the continuous efforts in the management of warehouse and distribution cost in Malaysia. Administrative expenses Administrative expenses for the year were $144.3 million, a decrease of $3.5 million from $147.8 million in FY14/15. The decrease was mainly due to lower impairment allowance of trade receivables by $5.3 million and lower general expenses achieved from the continuous cost saving initiatives. The decrease was partially offset by occupancy costs for new stores in Indonesia and Singapore and higher accrued variable bonus as the s performance improved. 10

11 Finance expenses Finance expenses increased by $1.2 million from $24.5 million in FY14/15 to $25.7 million in FY15/16 mainly due to higher interest incurred for increase in borrowings for Malaysia syndicated senior loan and Indonesia term loan as a result of higher credit sales as well as higher exchange losses in Malaysia and Indonesia. Income tax expense Income tax expense of $9.1 million for FY15/16 was based on taxable profit from Singapore and Malaysia operations (FY14/15: $4.6 million). The increase in tax expenses of $4.5 million mainly as a result of higher taxable profit from Malaysia operations and partially offset by higher income tax credits from Indonesia s loss. The effective tax rate for FY15/16 was higher than the Singapore statutory tax rate of 17.0% mainly due to higher tax rate in Malaysia and non-tax deductible expenses. Total comprehensive income Total comprehensive income for FY15/16 was an income of $7.7 million (FY14/15: $10.1 million). The decrease was mainly due to higher translation loss arising from translating Malaysia s results and financial position into Singapore dollar (presentation currency) as at 31 March 2016 due to deterioration of Ringgit against Singapore dollar. Comparatives Comparative figures for other income and other gains / (losses) net and administrative expenses have been reclassified to be consistent with the presentation for the year ended 31 March In addition, certain trade and other receivables (current assets) at 31 March 2015 were reclassified to trade and other receivables (non-current assets). The reclassifications do not have any material impact on the results and financial position of the for FY14/15. Balance Sheet As at 31 March 2016 Trade and other receivables The s trade and other receivables (current and non-current) increased by $32.1 million from $507.4 million as at 31 March 2015 to $539.5 million as at 31 March 2016 due to higher credit sales. Allowance for impairment of trade receivables as at 31 March 2016 was $24.2 million, representing 4.1% of trade receivables, as compared to $23.5 million as at 31 March 2015 which represented 4.2% of trade receivables. Inventories The s inventories decreased from $83.6 million to $77.8 million due to management focus on monitoring stock holdings in both Singapore and Malaysia and the effect of Ringgit depreciation against Singapore dollars. The decrease was partially offset by inventory purchases for the expanded operation in Indonesia. Current income tax recoverable Current income tax recoverable decreased from $3.0 million as at 31 March 2015 to $0.4 million as at 31 March The decrease was mainly due to tax credit relating to prior year tax assessments recovered from Malaysia and Singapore tax authorities. 11

12 Derivative financial instruments Derivative financial instruments represent the carrying amount of interest rate and currency swap 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 derivative financial instruments it has entered into in FY14/15. The fair value gain as at 31 March 2016 resulted in a net asset position for derivative instrument mainly attributed to the strengthening of Singapore dollar against Indonesia rupiah during the year. Trade and other payables The s trade and other payables (current and non-current) increased by $17.2 million from $122.6 million as at 31 March 2015 to $139.8 million as at 31 March 2016 mainly due to improved credit payment terms and higher accrued operating expenses. Borrowings The total borrowings of $371.2 million (31 March 2015: $329.2 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 loan in Indonesia. The increase was mainly from the issue of new fixed rate note in March 2016 as well as additional drawdown of the loans in Malaysia and Indonesia offset with repayment for the Asset Securitisation Programme Deferred income tax assets / liabilities - net The increase in net deferred income tax liabilities as at 31 March 2016 was mainly due to higher deferred tax liabilities on trade receivables resulted from unearned service charge income, partially offset by the tax losses from Indonesia subsidiary. Cash and bank balances Cash and bank balances increased by $33.3 million from $114.2 million as at 31 March 2015 to $147.5 million as at 31 March 2016 mainly as a result of strong cashflow generated from operating activities and net proceeds from borrowings, which were offset by payment of dividends, share buyback and fixed assets additions. 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 Q3 FY15/16 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. The Monetary Authority of Singapore retained its modest growth outlook for Singapore s economy in 2016 at between 1% and 3% 1. The general retail landscape continued to be challenging with retail sales, excluding motor vehicles, decreasing 2.2% in March 2016 on a year-on-year ( y-o-y ) basis 2. Retail sales of furniture and household equipment, however, grew 3.6% y-o-y during the same period 2. While the macroeconomic environment in Singapore remains soft in the short-term, the anticipates the potential demand for appliances and furniture to sustain over the medium-term. The Housing and Development Board ( HDB ) has launched a total of 4,170 Build-To-Order ( BTO ) flats during the year, with another 9,000 BTO and balance flats to be offered in May this year 3. All in all, the HDB plans to launch a total 18,000 BTO flats for The resale market for public and private non-landed housing have also been encouraging. The volume of HDB resale flats and private home sales increased 10.3% 5 and 17.6% 6 respectively in April 2016 as compared to March For Malaysia, its economy during the first quarter of 2016 registered a growth rate of 4.2% - the slowest quarterly pace in 6.5 years 7. For the rest of 2016, the economy is expected to expand at a moderate rate of 4.4% for 2016, although this is still slower than the average rate of 5.6% achieved in the last 5 years 8. While retail sales for the first quarter of 2016 was estimated to have declined 0.4% y-o-y, the retail sector is still forecasted to grow at 4.0% for the full year 9. Courts Asia intends to take advantage of market opportunities during the soft economy to expand its store presence. Indonesia s economy is anticipated to pick up pace over the next 1 to 2 years, with the World Bank predicting the economy to grow 5.1% and 5.3% for 2016 and 2017 respectively 10. This is an improvement from the weak global growth which led Indonesia to register a GDP growth rate of 4.8% in 2015, the slowest pace since Indonesia remains a key growth driver for Courts Asia and it plans to launch additional stores in the year ahead. Overall, the anticipates the uncertain global and regional macroeconomic outlook to exert pressure on business over the short-term. However, the is confident on the longer-term outlook and will continue to focus on optimising costs, refreshing its store experience and enhancing its omnichannel customer experience. 1 Modest gain in Singapore GDP expected in 2016 amid weak global demand: MAS Business Times, April 27, Retail Sales Index Food & Beverage Services Index - Department of Statistics Singapore, March Release of 1st Quarter 2016 Public Housing Data Housing and Development Board, April 22, 'Too early' to unwind property cooling measures: Lawrence Wong Channel NewsAsia, April 11, Prices of HDB resale flats inch down further in April: Property index Channel NewsAsia, May 5, Private apartment resale volume hits 3-year high in April Channel NewsAsia, May 10, Malaysia's economy grows 4.2 per cent in first quarter, slowest in 6.5 years Straits Times, May 13, IMF: Malaysia s growth to remain robust for 2016 Malay Mail Online, May 4, Malaysian consumers hold back on big-ticket items such as cars The Star Online, April 18, Indonesia Economic Quarterly, March 2016: Private Investment is Essential The World Bank, March 15, Indonesia's Q1 GDP grows at slower pace than forecast The Star Online, May 4,

14 11. Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on? Yes. Name of dividend Dividend Type Dividend Amount per Share (in cent) Tax Rate Proposed Final Cash 1.29 cents per ordinary share^ Tax exempt (one tier) ^ Proposed final dividend per ordinary share was based on 522,692,346 shares (excludes treasury shares) as at 31 March 2016 and is derived from approximately one third of net profit after tax for FY15/16. (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? Yes. Name of dividend Dividend Type Dividend Amount per Share (in cent) Tax Rate Final Cash 1.29 cents per ordinary share* Tax exempt (one tier) * Final dividend per ordinary share was based on 538,355,540 shares (excludes treasury shares) as at 31 March 2015 and is derived from 40% of net profit after tax for FY14/15. (c) Date payable The proposed final dividend will be paid on 19 August 2016 subject to shareholders approval. (d) Books closure date The Transfer Books and Register of Members of the Company will be closed on 6 August 2016 for the purpose of determining members entitlements to the proposed dividends. Accordingly, registrable transfers received by the Company s Share Registrar, Tricor Barbinder Share Registration Services (a business division of Tricor Singapore Pte Ltd) at 80 Robinson Road, #02-00 Singapore , up to 5.00 pm on 5 August 2016 will be registered before entitlements to the dividend are determined. 12. If no dividend has been declared/recommended, a statement to that effect. Not applicable. 14

15 ADDITIONAL REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2 Q3 or Half Year Results) 13. Segmented revenue and results for business segments or geographical segments (of the group) in the form presented in the issuers most recent audited financial statements, with comparative information for the immediately preceding year. Management has determined the operating segments based on the reports reviewed by the Regional Executive Committee ( Exco ) which are used to make strategic decisions. The Exco comprises the Chief Executive Officer, the Chief Financial Officer, the Chief Information and Credit Officer, the Chief Talent Officer, Chief Operating Officer and the regional heads of each business. The Exco considers the business from a geographic segment perspective. Management manages and monitors the business in the three primary geographic areas, Singapore, Malaysia and Indonesia. Operations in Singapore, Malaysia and Indonesia are essentially similar and consist principally of the retailing of household furniture, furnishings, home appliances and information technology products. Segmented revenue and results for geographic segments: FY15/16 Singapore Malaysia Indonesia Consolidated $'000 $'000 $'000 $'000 Revenue: Total segment revenue 506, ,958 16, ,796 Inter-segment revenue (1,104) - (325) (1,429) Revenue from external parties 505, ,958 15, ,367 Segment results 20,818 39,004 (8,308) 51,514 Other income and other gains - net 3,568 Finance expense (25,662) Profit before income tax 29,420 Income tax expense (9,142) Net Profit 20,278 Other segment items Depreciation and amortisation 6,582 5,682 1,198 13,462 Amortisation of deferred income (1,044) (1,294) (260) (2,598) 15

16 13. Segmented revenue and results for business segments or geographical segments (of the group) in the form presented in the issuers most recent audited financial statements, with comparative information for the immediately preceding year. Segmented revenue and results for geographic segments: (continued) FY15/16 Singapore Malaysia Indonesia Elimination Consolidated $'000 $'000 $'000 $'000 $'000 Segment assets 433, ,741 27,796 (102,811) 739,229 Unallocated assets - Deferred income tax assets 930-4,038 4,968 - Fixed deposit 66,295-8,502 74,797 - Current income tax recoverable Total consolidated assets 500, ,741 27,796 (102,812) 819,422 1 Additions to: - property, plant and equipment 4,872 3,053 3,340-11,265 - intangible assets ,146 Segment liabilities 201,058 38,685 8,174 (102,642) 145,275 Unallocated liabilities - Current income tax liabiities 3, ,506 - Deferred income tax liabiities 2,920 4,670 0 (0) 7,590 - Borrowings 202, ,915 20, ,187 Total consolidated liabilities 409, ,270 28,276 (102,642) 527,558 FY14/15 Singapore Malaysia Indonesia Consolidated $'000 $'000 $'000 $'000 Revenue: Total segment revenue 504, ,759 6, ,850 Inter-segment revenue - - (301) (301) Revenue from external parties 504, ,759 6, ,549 Segment results 25,558 23,670 (7,610) 41,618 Other income and other gains - net 4,795 Finance expense (24,497) Profit before income tax 21,916 Income tax expense (4,554) Net profit 17,362 0 Other segment items Depreciation and amortisation 6,796 6, ,838 Amortisation of deferred income (1,521) (1,800) (57) (3,378) 16

17 FY14/15 Singapore Malaysia Indonesia Elimination Consolidated $'000 $'000 $'000 $'000 $'000 Segment assets 539, ,383 16,787 (213,751) 722,282 Unallocated assets - Fixed deposit 34,221 - Income tax recoverable 1,928 3,035 - Deferred income tax assets 2,202 Total consolidated assets ,740 Additions to: -property, plant and equipment 2,954 5,466 2,897-11,317 -intangible assets ,092-2,293 Segment liabilities 164, ,441 6,329 (144,663) 127,617 Unallocated liabilities - Current income tax liabiities 4, ,011 - Deffered income tax liabiities 3, ,057 - Borrowings 264, ,531 5,187 (69,088) 329,200 Total consolidated liabilities 164, ,441 (144,663) 464, A breakdown of revenue FY 15/16 FY 14/15 Change S$ 000 S$ 000 % (a) Revenue reported for first half year 384, , (b) Net profit after tax reported for first half year 12,062 6, (c) Revenue reported for second half year 386, , (d) Net profit after tax reported for second half year 8,216 10,577 (22.3) 15. Interested Person Transactions There were no interested person transactions ( IPTs ) during the financial year ended 31 March The Company has not obtained a general mandate for IPTs from the shareholders. 17

18 16. A breakdown of total annual dividend (in dollar value) for the issuer s latest full year and its previous full year FY15/16 FY14/15 $ 000 $ 000 Ordinary dividends paid: Final exempt dividends of 1.29 cents (2015: 0.76 cents) per share paid in respect of prior financial year 6,932 4, Use of proceeds from the Company s initial public offering A total of $27.1 million has been invested from the date of incorporation of PTCRI up to 31 March 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. 18. 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. 19. 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. For and on behalf of the Board of Directors of Courts Asia Limited Terence Donald O Connor Chief Executive Officer 26 May 2016 Kee Kim Eng Chief Financial Officer 18