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First Quarter 2017 Financial Statements and Dividend Announcement

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First Quarter 2017 Financial Statements and Dividend Announcement

Profit & Loss

Note:

The exchange rate of S$1=IDR 9,830 (31 March 2015: S$1=IDR 9,508) was used for translating IMAS's assets and liabilities at the balance sheet date and S$1=IDR 9,650 (31 March 2015: S$1=IDR 9,414) was used for translating the results for the period.

Balance Sheet

Review of Performance

1st Quarter 2017 (1Q 2017) vs. 1st Quarter 2016 (1Q 2016)

Profit & Loss Statement

IMAS's 1Q 2017 revenue was S$398.1 million as compared to S$433.7 million in 1Q 2016. Lower revenue was mainly due to lower passenger vehicle sales and car rental related businesses.

The Group (excluding IMAS) registered marginally higher revenue of S$38.8 million as compared to S$38.5 million in 1Q 2016 and was mainly due to higher revenue from utilities and resort segment but partially offset by lower revenue from the industrial parks. The Consolidated Group revenue was S$436.9 million, 7.5% lower than 1Q 2016's S$472.2 million.

In line with the revenue, IMAS's 1Q 2017 cost of sales was S$323.2 million as compared to S$365.0 million in 1Q 2016. The Group's (excluding IMAS) cost of sales was S$32.8 million as compared to S$31.6 million in 1Q 2016. Accordingly, the Consolidated Group's cost of sales decreased from S$396.6 million in 1Q 2016 to 1Q 2017's S$356.0 million. The Consolidated Group's gross profit was S$80.9 million in 1Q 2017 as compared to S$75.6 million in 1Q 2016 and was mainly due improved margin from the vehicle servicing and financial services in the automotive segment.

IMAS's 1Q 2017 "other income" was S$15.5 million as compared to S$16.3 million in 1Q 2016 and was mainly due to foreign exchange loss as compared to foreign currency translation gain in the previous period. The Group's (excluding IMAS) "other income" was S$5.2 million expenses as compared to S$4.3 million income in 1Q 2016 was mainly due to the unrealised foreign exchange loss on the USD denominated receivables and the bank balances as a result of the weakening of USD/SGD exchange rate. Accordingly, the Consolidated Group's "other income" was S$10.3 million in 1Q 2017 as compared to 1Q 2016's S$20.6 million.

IMAS's 1Q 2017 "general and administrative expenses" was S$33.1 million as compared to S$29.4 million in 1Q 2016. Higher expenses were mainly due to higher provision for doubtful debts. The Group's (excluding IMAS) "general and administrative expenses" was S$4.7 million as compared to 1Q 2016's S$3.7 million and was mainly due to higher depreciation and professional fees. The Consolidated Group's "general and administrative expenses" was S$43.0 million as compared to 1Q 2016's S$38.3 million.

IMAS's 1Q 2017 "other operating expenses" was S$31.9 million as compared to 1Q 2016's S$32.2 million. The Group's (excluding IMAS) "other operating expenses" was S$6.1 million as compared to 1Q 2016's S$5.1 million and was mainly due to higher marketing and repair and maintenance expenses. The Consolidated Group's "other operating expenses" was S$38.0 million as compared to 1Q 2016's S$37.3 million.

The Consolidated Group's 1Q 2017 "share of associated companies' result" was S$15.0 million loss as compared to 1Q 2015's S$1.7 million profit and was mainly due to higher losses from the automotive associated companies.

IMAS's 1Q 2017 "finance costs" was S$21.6 million as compared to 1Q 2016's S$20.3 million and the Group's (excluding IMAS) "finance costs" was S$10.9 million as compared to 1Q 2016's S$14.3 million. The Consolidated Group's "finance costs" was S$32.5 million as compared to S$34.6 million in 1Q 2016 and lower finance costs was due to repayment of external bank borrowings and partial early redemption of the Company's 2017 EMTN.

IMAS's 1Q 2017 net loss was S$15.4 million as compared to S$4.0 million profit in 1Q 2016 and was mainly due to the losses from its associated companies. The Group's (excluding IMAS) net loss was S$23.7 million as compared to S$10.7 million loss in 1Q 2016 and was mainly due to the foreign currency exchange loss. The Consolidated Group's net loss attributable to equity holders of the Company was S$39.1 million for 1Q 2017 as compared to 1Q 2016's S$15.7 million net loss.

Balance Sheet

The Group's total assets of S$4,757.3 million as at 31 March 2017 were S$2.9 million lower than as at the previous year end. Other non-current assets decreased by S$9.7 million mainly due to the decline in value of the Group's quoted equity investments. Current assets decreased by S$7.9 million to S$2,285.7 million mainly due to the decrease in cash and bank balances arising from financing activities.

The Group' total liabilities of S$2,954.6 million as at 31 March 2017 were S$61.3 million higher than as at the previous year-end and was mainly due to the increased in trade and other payables. The Group's borrowings and debt securities as at 31 March 2017 were S$2.4 billion of which S$1.1 billion relates to IMAS' car rental and financial services business.

Cash Flow Statement

Net cash used in operating activities was S$86.0 million as compared to S$53.1 million in the previous period.

Net cash used in investing activities was S$28.8 million and was mainly due to capital expenditure.

Net cash generated from financing activities was S$35.8 million mainly from the proceeds from issue of debt securities and borrowings.

Commentary On Current Year Prospects

IMAS's passenger car results have been affected by the lack of new product launch versus the competitors. Although IMAS's commercial and heavy duty truck and equipment businesses continue to be weak, however we saw an improvement in sales compared with the previous period. With the increase spending in the infrastructure by the Indonesian Government, we hope this and also the growth from its financing services and vehicle service will contribute positively to IMAS.

The refocusing of our industrial parks business continues. The utilities business has benefited from lower energy prices that may not continue. We continue to pursue land sales in Bintan Resorts.