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Financials

First Quarter Financial Statements and Dividend Announcement 2018

Financials Archive

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Profit & Loss

Balance Sheet

Review of Performance

1st Quarter 2018 (1Q 2018) vs. 1st Quarter 2017 (1Q 2017)

Profit & Loss Statement

GV Group's 1Q 2018 revenue relating to IMAS was S$412.9 million as compared to S$398.1 million in 1Q 2017. Higher revenue was mainly due to higher trucks and heavy duty equipment sales and car rental related income. The Group (excluding IMAS) registered higher revenue of S$40.6 million as compared to S$38.8 million in the previous period and was mainly due to higher revenue from the resort segment. The Consolidated Group revenue was S$453.5 million, 4% higher than 1Q 2017's S$436.9 million.

IMAS's 1Q 2018 cost of sales IMAS was S$334.0 million as compared to S$323.2 million in 1Q 2017. The Group's (excluding IMAS) cost of sales was S$31.6 million as compared to S$32.8 million in 1Q 2017. In line with the revenue, the Consolidated Group's cost of sales increased from S$356.0 million in 1Q 2017 to 1Q 2018's S$365.6 million. The Consolidated Group's cost of sales to revenue ratio was 0.81 in 1Q 2018 as compared to 0.82 in 1Q 2017. The Consolidated Group's gross profit was S$87.9 million in 1Q 2018 as compared to S$80.9 million in 1Q 2017 and was in line with higher revenue.

IMAS's 1Q 2018 "other income" was S$16.3 million as compared to S$15.5 million in 1Q 2017 and was mainly due to higher commission income and sales incentive from the car manufacturer. The Group's (excluding IMAS) "other income" was S$2.2 million expenses as compared to S$5.2 million expenses in 1Q 2017 and was mainly due to lower unrealised foreign exchange losses as compared to the previous period. The Consolidated Group's "other income" was S$14.1 million in 1Q 2018 as compared to 1Q 2017's S$10.3 million.

IMAS's 1Q 2018 "general and administrative expenses" was S$30.9 million as compared to S$33.1 million in 1Q 2017. Lower expenses were mainly due to lower manpower costs, provision for doubtful debts, depreciation and licensing expenses. The Group's (excluding IMAS) "general and administrative expenses" was S$3.6 million as compared to 1Q 2017's S$4.7 million and was mainly due to lower professional fee expense. The Consolidated Group's "general and administrative expenses" was S$40.3 million as compared to 1Q 2017's S$43.1 million.

IMAS's 1Q 2018 "other operating expenses" was S$31.0 million as compared to 1Q 2017's S$31.9 million. The Group's (excluding IMAS) "other operating expenses" was S$4.1 million as compared to 1Q 2017's S$6.1 million and was mainly due to write back of accrued expenses previously recorded, now no longer required. The Consolidated Group's "other operating expenses" was S$35.1 million as compared to 1Q 2017's S$38.0 million.

The Consolidated Group's 1Q 2018 "share of associated companies' result" was S$3.5 million profit as compared to 1Q 2017's S$15.0 million loss. IMAS has ceased equity accounting on one of its loss making associate as the accumulated losses have fully eliminated its investment cost.

IMAS's 1Q 2018 "finance costs" was S$23.3 million as compared to 1Q 2017's S$21.5 million and the Group's (excluding IMAS) "finance costs" was S$6.1 million as compared to 1Q 2017's S$10.9 million. The Consolidated Group's "finance costs" was S$29.4 million as compared to S$32.4 million in 1Q 2017 and was mainly due to repayment of external bank borrowings.

IMAS registered net profit of S$5.8 million in 1Q 2018 as compared to S$17.6 million net loss in 1Q 2017 and was mainly due to higher revenue and non-equity accounting of loss making associate company. The Group's (excluding IMAS) net loss was S$10.6 million as compared to 1Q 2017's S$23.6 million loss and was mainly due to lower foreign exchange loss, financing costs and operating expenses. The Consolidated Group's net loss attributable to equity holders of the Company was S$9.8 million for 1Q 2018 as compared to 1Q 2017's S$39.2 million.

Balance Sheet

The Group's total assets of S$4,660.8 million, as at 31 March 2018, were S$151.0 million higher than as at the previous year end. Other non-current assets increased by S$3.9 million mainly due to the increased in the value of the Group's quoted equity investments. Current assets increased by S$132.5 million to S$2,240.4 million and was mainly due to the increased in inventories, trade receivables and other receivables.

The Group' total liabilities of S$2,977.3 million, as at 31 March 2018, were S$179.7 million higher than the previous year-end and was mainly due to the increased in borrowing for capital expenditure and for the financial services business. The Group's borrowings and debt securities as at 31 March 2018 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$80.2 million as compared to S$86.0 million in the previous period.

Net cash used in investing activities was S$47.4 million and was mainly due to capital expenditure.

Net cash generated from financing activities was S$124.6 million mainly from the proceeds from issue of debt securities and borrowings.

Commentary On Current Year Prospects

While IMAS's truck and heavy duty equipment, car rental, and spare parts and servicing businesses have all registered good growth, higher contributions from passenger vehicle segment, with launch of new vehicle models, is expected towards 2nd half of 2018 and into Year 2019.

We started 2018 with strong tourist arrival into Bintan and registered growth in Resorts and Ferry segments. Continue with this momentum and development of key industrial clusters in Bintan, we are hopeful that these core business segments will contribute positively to the Group.

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