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Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED (Formerly known as Terratech Group Limited)

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Page 1: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

Corporate Presentation

Unaudited Financial Information

of Capital City Group for 3Q2017 & 9M2017

29 May 2017

1

CAPITAL WORLD LIMITED(Formerly known as Terratech Group Limited)

Page 2: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

Disclaimer

Information in this presentation may contain forward-looking statements that reflect the current views of Capital World

Limited (the “Company” and together with its subsidiaries, the “Group”) with respect to future events and financial

performance. These views are based on the current assumptions which are subject to unknown risks and uncertainties,

which may change over time. No assurance can be given that future events will occur, that projections will be achieved,

or that the assumptions are correct. Actual results may differ materially from those anticipated as a result of the risks

faced by us. The views expressed here also contain some information derived from publicly available sources that have

not been independently verified.

This presentation does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer to

subscribe for, any shares nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in

connection with, any contract or investment decision or commitment whatsoever.

The Group does not intend, and does not assume any obligation, to update any industry information or forward-looking

statements set forth in this presentation to reflect subsequent events or circumstances.

Despite the fact that utmost care has been taken to ensure that the information on this presentation slides are as

accurate as possible, the Group does not accept any liability for errors or omissions nor for the consequences of using

the information or the material available in this presentation.

2

Page 3: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

4

8

14

18

21

Result Highlights

Unique Business Model

Projects

Outlook & Business Strategies

Q&A

3

Contents

Page 4: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

RESULT HIGHLIGHTS

4

Page 5: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

37,095

81,637

21,169

74,62569,879

120,282

0

50,000

100,000

150,000

FY2015 FY2016 3Q2016 3Q2017 9M2016 9M2017

Revenue (Note 1)

RM’000YoY Growth = 120.1% YoY Growth = 72.1%

(1.7.2014 – 30.6.2015) (1.7.2015 – 30.6.2016) (1.7.2015 – 31.3.2016) (1.7.2016 – 31.3.2017)

9.5% 24.8% 22.3%% of Completion (Cumulative)

Financial year end: 30 June

QoQ: Quarter-on-quarter

YoY: Year-on-Year

Note 1: The financial information of the Capital City Group is solely in respect of Altimate Ventures Limited, Rise Expedition Global Limited, First Star Ventures Limited and their respective subsidiaries.

5

Capital City Group

46.0%

(1.1.2016 – 31.3.2016) (1.1.2017 – 31.3.2017)

QoQ Growth = 252.5%

Page 6: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

27,874

62,584

15,979

55,08753,540

92,569

17,313

57,628

14,901

53,457

50,406

86,901

11,490

42,912

10,694

38,40236,327

62,261

75.1% 76.7% 75.5%

73.8%76.6% 77.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

FY2015 FY2016 3Q2016 3Q2017 9M2016 9M2017

Gross Profit EBITDA Net Profit Gross Profit Margin(1.7.2014 – 30.6.2015) (1.7.2015 – 30.6.2016) (1.7.2015 – 31.3.2016) (1.7.2016 – 31.3.2017)

RM’000

Profitability

Financial year end: 30 June

EBITDA: Earnings before interest, tax, depreciation and amortisation

Margins (%) Gross Profit (%) EBITDA (%) Net Profit (%)

FY2015 75.1 53.2 31.0

FY2016 76.7 75.1 52.6

3Q2016 75.5 70.4 50.5

3Q2017 73.8 71.6 51.5

9M2016 76.6 72.1 52.0

9M2017 77.0 72.2 51.8

6

Capital City Group

(1.1.2016 – 31.3.2016) (1.1.2017 – 31.3.2017)

Page 7: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

RM(‘000) As at 30 June 2016

(Audited)

As at 31 March 2017

(Unaudited)

Current assets

Non-current assets

190,401

276,403

259,233

311,890

Total assets 466,804 571,123

Current liabilities

Non-current liabilities

268,201

152,894

334,433

128,735

Total liabilities

Total equity

421,095

45,709

463,168

107,955

Cash and bank balances

Hire purchase facilities from bank

Return on assets (Note 1)

Current ratio (Note 2)

14,081

131

9.2%

1.7

16,965

96

14.5%

1.7

Financial Position

Note 1: Return on assets for 9M2017 is calculated based on annualised net profit divided by total assets as at 31 March 2017.

Note 2 Deferred revenue of approximately RM157.7 million and approximately RM186.4 million as at 30 June 2016 and 31 March 2017 respectively were excluded from the current liabilities as deferred revenue is the book

entry and non-cash in nature

7

Capital City Group

Page 8: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

UNIQUE BUSINESS MODEL

8

Page 9: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

Joint venture partnership with

landowners

3 key aspects • Project & Partner

Identification

• Conception & Design

• Implementation

Innovative

integrated

projects

9

Business Model

Page 10: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

Capital - Light

Strategy• Joint venture with

landowners

• Enhance land value

through innovative

design

Low capital outlay Low levels of

borrowingsWin-win approachEconomic benefits

10

Competitive Strengths

Page 11: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

Traditional Developer

Purchase of Land

RM40 million (40% of land cost)

Loan: RM60 million (60%)

Interest: 7% p.a. for 10 years tenure

amounting to RM42 million

Quarterly instalment: RM2.55 million

Our Business Model

Joint Venture

Initial

paymentRM0.75 million

Less cash

flow burden

Progressive instalment to land owner

Pay as we sell, a split of 70% (us): 30%

(Landowner), subject to a cap of RM100

million

Pay off in 5 years when project is

completed

v.s.

ILLUSTRATION – Land Entitlement of RM100 Million (Note 1)

Note 1: All numbers are assumed for illustration purpose only.

11

Competitive Strengths

Page 12: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

CAPITAL WORLD LIMITED(formerly known as Terratech Group Limited)

Property

Development

Capital City

Austin City

Sitiawan

Wellness

Hub

Marble

Business

12

Group’s Business

Page 13: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

Premium quality

Marble

Exclusive rightsto marble quarry in Malaysia

up to January 2044

20.03* millionm3 of marble resources

Synergistic to our projects

* Extracted from Annual Report of Terratech Group Limited for the year ended 31 March 2016

13

Marble Business

Page 14: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

PROJECTS

14

Page 15: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

3 towers

Serviced

Apartments

16 + 18storeys

1,655Retails units

21World’s top

capital cities in

one mall

Capital 21 Mall• Cineplex

• Children’s theme

park

• World Museum

6Storeys

Thematic

Festival Mall

Hotel/

Serviced

Suites

315Hotel rooms branded

Hilton Garden Inn

630Units of hotel-style

serviced suites

15 storeys

690 units

15

Current Project - Capital City

Page 16: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

Retail mall

Office suites

Hotel and residential

apartments

Location

Tebrau, Johor Bahru

Land size

Approximately

27,670 sq m

16

Upcoming Project - Austin City

Page 17: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

Mixed commercial

and residential

development

Health and wellness

concepts

Destination for

tourists

Location

Pengkalan Baharu,

Perak

Land size

Approximately

188,062 sq m

17

Upcoming Project - Sitiawan Wellness Hub

Page 18: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

OUTLOOK & BUSINESS STRATEGIES

18

Page 19: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

19

Business Strategies and Future Plans

Short Term:

• Focused on delivery of Project Capital City

• Realise synergies between the property development projects

and the existing marble business

• Launch Project Austin

Medium Term:

• Launch Project Sitiawan Wellness Hub

• Diversify into different development types

Long Term:

• Extend successful business model to new projects and markets

in Malaysia and rest of Southeast Asia

Page 20: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

Myanmar

Philippines

Indonesia Vietnam Cambodia Thailand

Singapore Brunei Laos

GDP growth:

6.2% over 2017- 20211

Middle income classHalf a billion by 20302

Population growth:

18% from 600 million to

700 million by 20303

1 Economic Outlook for Southeast Asia, China and India 2017,

http://www.keepeek.com/Digital-Asset-Management/oecd/development/economic-outlook-for-southeast-asia-china-and-india-2017_saeo-2017-en#.WLjlPTuGM2w#page19

2 ASEAN Economic Outlook Forum 2017 https://www.iesingapore.gov.sg/IE-Blog/ASEAN-Economic-Outlook-Forum-2017

3 Asian Development Bank Institute, https://www.adb.org/sites/default/files/publication/159312/adbi-asean-2030-borderless-economic-community.pdf 20

Southeast Asia (ASEAN)

Page 21: CAPITAL WORLD LIMITED - Singapore Exchange · Corporate Presentation Unaudited Financial Information of Capital City Group for 3Q2017 & 9M2017 29 May 2017 1 CAPITAL WORLD LIMITED

Q & A

Thank you