June 14, 2017

Eco World International (ECWI MK) HOLD Share Price MYR 1.03 Growing horizons 12m Price Target MYR 1.12 (+9%)

Internationalizing the ‘ECOWORLD’ brandname Company Description A property developer with property projects in Eco World International (EWI) is the first and only Malaysia listed and Australia. developer with pure overseas exposure in the UK and Australia property markets. Earnings growth would be strong in FY18-FY20 with the staggered contributions from its London and Sydney/Melbourne projects.

We initiate coverage with a HOLD and MYR1.12 RNAV-TP (0.75x P/RNAV). Statistics Shariah status Yes Well-located projects to sustain earnings visibility 52w high/low (MYR) na/na 3m avg turnover (USDm) 2.3 All EWI’s projects in UK and Australia are well connected with close Free float (%) 57.7

proximity to existing/future train/tram lines. Since most of the projects Issued shares (m) 2,400 RealEstate are strategically located in new growth/mature areas catering for Market capitalisation MYR2.5B different market segments, pre-sales rates have been encouraging at 68- USD580M 83% since their launches in 2015 (except for Embassy Gardens Phase 2’s Major shareholders: 37%). Total pre-sales were MYR6.4b (87% GBP, 13% AUD) at end-Jan 2017, Gll Ewi Hk Ltd. 27.0% providing earnings visibility over the medium term. LIEW KEE SIN 10.3% Syabas Tropikal Sdn. Bhd. 3.3% Price Performance A new name in the hands of an experienced team EWI’s management is led by a team which includes former SP Setia (SPSB 1.30 105

Malaysia MK; BUY) directors and executives with considerable experiences in UK 1.25 100 and Australia property markets. Certain members of the team were 1.20 95 previously involved in redeveloping the iconic Battersea Power Station project in London (Phase 1 & 2). EWI’s partnership with GuocoLand will 1.15 90

allow EWI to tap onto GuocoLand’s vast experiences in property 1.10 85 development and investments in China, Singapore, Vietnam and UK. 1.05 80

1.00 75 Initiate coverage with a HOLD, MYR1.12 TP Apr-17 Apr-17 May-17 May-17 May-17 Jun-17 EWI is the only Malaysia listed developer offering a pure exposure to the Eco World Int'l - (LHS, MYR) UK and Australia property markets, hence, it has no direct valuation Eco World Int'l / Kuala Lumpur Composite Index - (RHS, %) comparable in Malaysia. That said, EWI has similar geographical exposure -1M -3M -12M as SPSB’s overseas operations, hence, we have benchmarked EWI against Absolute (%) (10) na na SPSB. We value EWI at MYR1.12 based on 0.75x P/RNAV (MYR1.49 Relative to index (%) (10) na na RNAV/sh). Post-Yarra One acquisition, EWI remains in net cash position. Source: FactSet

FYE Oct (MYR m) FY16A FY17E FY18E FY19E FY20E Revenue 1 0 1 1 1,694 EBITDA (38) (63) (61) (62) 381 Core net profit (220) (104) 226 437 564 Core FDEPS (sen) (89.3) (4.3) 9.4 18.2 23.5 Core FDEPS growth(%) nm nm nm 93.6 29.1 Net DPS (sen) 0.0 0.0 0.0 4.6 5.9 Core FD P/E (x) nm nm 10.9 5.7 4.4 P/BV (x) 2.4 0.8 0.9 0.8 0.7 Net dividend yield (%) 0.0 0.0 0.0 4.4 5.7 ROAA (%) (35.4) (4.4) 6.3 11.3 13.3 EV/EBITDA (x) na nm nm nm 0.8 Net gearing (%) (incl perps) nm net cash net cash net cash net cash

Wong Wei Sum, CFA Syairah Malek [email protected] [email protected] (603) 2297 8679 (603) 2297 8641

THIS REPORT HAS BEEN PREPARED BY MAYBANK KIM ENG RESEARCH (PTE) LTD PP16832/01/2013 (031128) SEE PAGE 48 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS Eco World International

Value Proposition Price Drivers

. A young real estate group run by experienced captains. EWI’s buyers profile Eco World Development Group (ECW MK; BUY), GuocoLand 1% Ltd (GUOL SP; Not Rated) hold 27% stake each in EWI. 4% 8% Indonesia 5%

. 87% of total estimated GDV is derived from the matured 18% Australia London property market and the remaining is from 49% Others Australia (Sydney and Melbourne). 17% Middle East & North . EWI is in its infancy stage. All its London and Sydney Africa 2% 1 projects were launched in 2015 and profits can only be Singapore recognised between FY18 and FY21. 22% 55% Hong Kong and China . EWI adopts a fast turnaround strategy and will continue to focus on the mature property markets – UK and Australia. 19% Malaysia

UK . ROEs should improve in FY18-20 on the completion of the Source:London Company, projects Maybank Kim EngSydney project

construction for all London and Sydney projects which are targeted between 2018 and 2021. 1. According to Savills Research forecasts, there is a shortfall of around 26,000 homes (2016-2020) against the GDV breakdown by project – MYR13.6b Further Alterations to the London Plan’s housing target of Yarra West One 62,000 homes p.a. in London from 2015-2025. The supply Village 5% 7% shortfall will continue in all mainstream market segments below GBP1,000 psf while supply is increasing towards London City 2 the top of the market (>GBP1,000 psf). 28% 2. For Sydney (New South Wales), future supply is now Wardian 23% above the long-term average but Savills Research believes the amount of pent up demand is significant such that excess supply can be absorbed comfortably for Embassy 2 a number of years subject to pricing and locations. 37%

Source: Company

Financial Metrics Swing Factors . EWI is an RNAV play with lumpy earnings trend as projects Upside earnings can only be recognised upon completion. Post-the acquisition of the Melbourne land (Yarra One), EWI is . Potential RNAV-accretive land acquisitions. expected to stay in a net cash position. . Weakening in GBP or AUD could encourage foreign . We do not expect any dividend payment before FY19 as property buying in these countries. cash will likely be retained as working capital for the construction of its UK and Australia projects. Downside Sales forecasts from 2017-2020 1,800 . Uncertainties from Brexit could hit buying sentiment and 1,600 weaken the property demand in London as potential 1,400 buyers could adopt a wait-and-see approach until there is 1,200 more certainty in the market. 1,000

800 . In our view, such uncertainties could also lead to the MYR m MYR 600 fluctuation in GBP, affecting sentiment. 400 . Risks could come from further policy tightening measures 200 by the UK and Australia authorities. - 2017 2018 2019 2020 London 1,217 1444 1655 381 . Competition from nearby property projects. Sydney 169 222 168 176 Source: Company

[email protected]

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Contents

Page

Merit 1: Right products at strategic locations 4

Merit 2: Strategies bearing fruits 8

Merit 3: Veteran management team 13

Merit 4: Two giants go hand in hand 15

Merit 5: The “Eco World” connection 16

Merit 6: Ample headroom to grow 18

Risks and concerns 19

Financials 20

Valuations 22

Our RNAV estimates 23

Sensitivity analysis 24

Financial tables 26

Property profiles 28

Appendix 1 – Corporate Structure 38

Appendix 2 – Board of Directors and Key Management 39

Appendix 3 – Key achievements, milestones and awards 44

Appendix 4 – Location map for EWI’s London and Australia projects 45

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Merit 1: Right products at strategic locations

Internationalizing the ‘ECOWORLD’ brandname

EWI is the first and only Malaysia listed developer providing a pure exposure to the UK and Australia property markets. It has a total landbank of approximately 14.7 acres (including a recent land purchase in Melbourne post-IPO listing) with a total carrying estimated GDV of MYR13.6b (based on MYR5.425/GBP and MYR3.231/AUD). A big chunk of this MYR13.6b GDV is derived from its three London projects (87%) namely London City Island Phase 2 (LCI 2), Embassy Gardens Phase 2 (EG 2), and Wardian London (WL) while the remaining is from its Australia projects - West Village (WV; in Sydney) and Yarra One (YO; in Melbourne). Its London projects are undertaken via joint venture with the Ballymore Group where EWI takes on the larger 75% stake. Its Sydney project is 100%-owned while its Melbourne project is 80%-owned (the remaining 20% is held by Salcon Berhad [SALC MK; Not Rated]).

GDV breakdown, MYR13.6b – 87% London, 13% Australia Landbank breakdown, 14.7 acres – 89% London, 11% Australia

Yarra West Yarra One West One Village 3% Village 5% 8% 7%

London Wardian City 2 28% 9% London City 2 Wardian 23% 41%

Embassy Embassy 2 2 37% 39%

Source: Company, Maybank KE (chart) Source: Company, Maybank KE (chart)

Note: Post-IPO listing, EWI had entered into a conditional share sale and purchase agreement with Salcon Development, a 100%-subsidiary of Salcon Bhd to acquire a 80% stake in Salcon Development PTY LTD (PropCo, which owns a 0.5-acre freehold land in South Yarra, Melbourne) for AUD120,000 cash. EWI will also repay a sum (AUD14.1m) equivalent to 80% of the total advances owing by PropCo to Salcon Development. The total purchase is around AUD41-45m including the land cost, we understand. EWI will develop the 0.5-acre land into a residential-led mixed use development (called Yarra One) worth AUD218m (or MYR704m) in GDV. Yarra One was launched in May 2017 and will be completed by 2H20.

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Wide range of products for better earnings stability

Each of EWI’s project has its own special features to cater for different property market segments in different locations. In our view, a more diversified portfolio of products and locations provide sales stability and it minimises risk of a complete downfall when there is a slowdown in a particular property market segment.

In our view, EWI’s projects in London are well-spread out at three different growth areas – EG 2 is located at the Nine Elms regeneration area, WL is at the London Borough of Tower Hamlets and LCI 2 is at Leamouth Peninsular in the east London district of Canning Town. These projects appeal to different groups of buyers, we believe.

Of the three projects in London, EG 2 and WL focus more on the lower prime market with selling prices ranging from GBP1,000-1,500 psf while LCI 2 focuses on the upper mainstream market segment with selling prices ranging from GBP803-857 psf. The latter has relatively stronger demand due to the current household affordability issues. Unlike upper mainstream which attracts more local buyers where purchases are largely debt funded, properties priced above GBP1,000 psf have a higher proportion of demand from overseas buyers which are more equity funded, we understand.

Strategic locations draw buyers

In our view, all EWI’s projects are strategically located at either new growth areas or areas with unique commercial activities supported by excellent connectivity and accessibility. These will serve as strong pull factors to EWI’s projects and help to sustain/raise property values over the longer-term.

a) Ample opportunities from new growth areas

Embassy Gardens Phase 2 is located at the Nine Elms regeneration area that is undergoing a 15-year transformation from an industrial district of central London into an ultra-modern residential and business district, we understand. The Nine Elms redevelopment will provide 20,000 new homes, support 25,000 new jobs and deliver extensive transport improvements including a Northern Line rail extension from Kensington station to two new stations - Nine Elms and Battersea Power (source: nineelmslondon.com). Both stations are scheduled to be opened in 2020. The Nine Elms area is also slated to be London’s new diplomatic precinct with the relocation of the US and Netherlands Embassies into the Embassy Gardens development site by 1H 2017. On top of that, a wide range of public amenities and commercial offerings such as offices, restaurants and cafes at the nearby Battersea Power Station project will also help to attract office/retail population further.

In Sep 2016, Apple (AAPL US; Not Rated) has agreed to take on 500,000 sq.ft. of office space lease across six floors in the Battersea Power Station’s central boiler house and relocate 1,400 Apple employees from its eight offices in London to the site in 2021 (source: The Guardian.com). In our view, this is positive to the Nine Elms regeneration area. Apple’s relocation should help to transform and draw in the crowds to the Nine Elms area.

West Village is located at Parramatta, a sizeable commercial centre in the metropolitan area of Sydney, Australia. Parramatta is also a major transport interchange with extensive road, rail and bus infrastructure in place. The substantial local and state government investments in infrastructure and Parramatta’s new role as a government centre with the relocation of agencies such as the New South Wales Police Force headquarters and Sydney Water from the Sydney CBD (source: Wikipedia, The Australian websites)

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have raised awareness on Parramatta as an emerging second CBD within the Sydney metropolitan area, we understand. Significant transportation linkages and ongoing commercial developments have created more job opportunities and the growing office/retail catchment should boost demand for properties there over the longer term, we believe.

b) Commercial activities provide an immediate catchment

Canary Wharf (a commercial project with office and retail spaces of circa 16m sq.ft.), which is just across a pedestrian swing bridge from the site of Wardian, is one of the United Kingdom’s two main financial centres along with the traditional City of London, based on our understanding. is home to the world or European headquarters of numerous major banks, professional services firms and media organisations including Barclays, HSBC, J.P Morgan, Thomson Reuters, Credit Suisse, etc (source: Wikipedia, Reuters). Canary Wharf has an estimated working population of 105,000 people, we understand.

In our opinion, the immediate office catchment of Canary Wharf will not only benefit Wardian but also LCI 2, which is located just two Underground stations away from Canary Wharf, but 33% cheaper in term of selling prices, offering an alternative to potential buyers/investors.

The English National Ballet and its ballet school have proposed to relocate from their current premises to make their new homes at the London City Island (LCI) site. Same with the London International Film School, which is proposed to be opened in late 2017. The London International Film School will accommodate 220 students along with over 55 staff from over 60 countries, we understand (source: www.standard.co.uk).

In our view, the English National Ballet, its ballet school and the London International Film School are positive tenants that will transform the total LCI into a new arts and culture destination for London. The student population would also help to support the rental market and sustain commercial activities at LCI. Better occupancies and improved investment returns would heightened investors’ interest in LCI, which in turn, will translate into stronger property values and demand on properties there over the longer-term.

Supported by excellent accessibility and connectivity

All EWI’s projects in London, Parramatta (Sydney) and South Yarra (Melbourne) are easily accessible. On top of the existing roads, the five EWI projects have close proximities to existing railway / tram networks: a) Embassy Gardens Phase 2 – The site is currently served by the Vauxhall station which is located within about 1 km. Vauxhall station is a National Rail, London Underground and London Buses interchange station in central London. b) Wardian – The project is accessible via the South Quay station (served by the Docklands Light Railway (DLR)), which is about 500m to the east of the site and the Canary Wharf station (across a pedestrian bridge over South Dock), which is served by the London Underground via the Jubilee Line. c) LCI 2 – The project has good links to public transportation with a specially- commissioned footbridge (known as the Red Bridge) providing direct and convenient access to the Canning Town station, which is currently served by the Jubilee Line of the London Underground and the DLR. d) West Village – The site is located approximately 500m from the Parramatta train station, which connects commuters to Sydney’s CBD in about 30min.

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e) Yarra One – The site is located approximately 300m from the South Yarra tram station.

It has become increasingly clear that the presence of transit can boost property values and result in more valuable development opportunities, based on our understanding. According to a survey done by the Nationwide Building Society back in 2014, London’s property buyers were prepared to pay an average of GBP42,000 extra to secure a property within a five-minute walk to an Underground or railway station (source: London Evening Standard).

EWI's asset portfolio Projects Location Land size Market value for Estimated GDV Land title Product type land (acre) (approx.) (GBP m / AUD m) (GBP m / AUD m) London London City Leamouth 5.95 156.8 691.3 Predominantly Residential-led Island Phase 2 Peninsula, East freehold with mixed use London a small parcel scheme of leasehold of 125 years from 10 March 2005 Embassy Gardens Nine Elms, 5.71 314.0 932.5 Freehold Residential Phase 2 London Wardian London The 1.35 89.1 566.1 Freehold Residential in the London Borough of Tower Hamlets, next to Canary Wharf Australia West Village Parramatta, 1.18 41.3 (40.1 314.8 Freehold Mixed Sydney excluding GST) residential and commercial development Yarra One South Yarra, 0.5 41.1-45.0 218.0 Freehold Residential-led Melbourne mixed use development Total (MYR m) ^ 3,303.8 13,601.5 ^ Our currency assumptions: MYR5.425/GBP, MYR3.231/AUD Source: Company

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Merit 2: Strategies bearing fruits

Right strategies reflected in decent sales

In our view, EWI’s ventures into different market segments in London (to cater to demand in the upper mainstream and lower prime markets with average selling prices ranging from GBP828-1,499 psf) and new growth areas (such as Nine Elms and Parramatta), all of which are connected by existing/future transport networks, are beginning to bear fruits.

Pre-sales rates have been encouraging thus far despite stiff competition from the surrounding projects with similar price points. As at end-Jan 2017, EWI has chalked up a total pre-sales of MYR6.4b (87% from London, 13% from Parramatta). Pre-sales rates ranged from 37%-83% as at end-Mar 2017 since their launches. This provides medium-term earnings visibility. To us, this is impressive for a young property group without an established track record in the mature London and Sydney property markets.

EWI's pre-sales rates as at Mar 2017 Projects Launch dates Pre-sales rates* Pre-sales Pre-sales (GBP/AUD m)^^ (MYR m)^^ London LCI 2 May 2015 average: 73% 436 2,367 EG 2 Sep 2015 37% 241 1,308 Wardian Sep 2015 68% 345 1,873 Sub-total: 1,023 5,548

Sydney West Village June 2015 83% 249 804 Sub-total: 249 804 Total (MYRm) ^ 6,351 ^ Our currency assumptions: MYR5.425/GBP, MYR3.231/AUD ^^ Including affordable homes, English National Ballet Pre-let for LCI2 of GBP5m and ground rent (LCI2: GBP24.7m, EG2: GBP21.8m, Wardian: GBP13.8m); as at Jan 2017 * as at Mar 2017 Source: Company

Take-up rates remain decent after UK’s EU Referendum

EWI has launched almost all of its London projects worth a total MYR9.6b in GDV between 2015 and 2016 except for EG 2’s block A03 (GDV GBP327m; to be launched in 2018). These launched projects include LCI 2’s blocks A to E & M, EG 2’s blocks A04 & A05 and Wardian’s East & West Tower. Despite the uncertainties arising from the UK’s decision to leave the European Union (EU), pre-sales rates remain commendable since UK’s EU Referendum held on 23 June 2016. Average pre-sales rate for EWI’s London projects was 64.4% end-Mar 2017, from 56.3% end-June 2016. We attribute the rather good sales performance to the projects’ strategic locations.

LCI 2, (i) anchored by the English National Ballet and its ballet school as well as London International Film School, together with (ii) its relatively more affordable price points (selling prices of GBP803-857 psf for blocks A & M, B, C, D & E) and (iii) accessibility via the London Underground and DLR, should continue to receive strong interest, we think. This is reflected in its decent take-up rate of 73%. According to Savills Research report, 91% of annual occupier demand for housing in London is at price points below GBP1,000 psf (LCI 2’s target market) and there is a significant undersupply of new housing for properties below GBP700 psf.

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While the upper prime property segment (which are EG 2 and Wardian focus segments, with ASP of GBP1,000-1,500 psf) are affected by (i) the Brexit (due to their buyers’ profile which are largely the investors) and (ii) additional 3% stamp duty implemented in 2016, we expect demand on EG 2 and Wardian to improve eventually and gradually once there is more certainty in the housing market and when construction of the Crossrail I and Northern Line extension are close to completion in 2018 and 2020 respectively. In our view, the GBP’s weakness may neutralise the additional stamp duty costs as well as uncertainties from Brexit and entice longer-term foreign investors.

EWI: Average take up rates of its London projects are improving since the EU Referendum on 23 June 2016

Take up rate (%)

100

90 LCI 2 80

70

60 EG 2

50

40 Wardian 30

20 West Village 10

0

Jul-16

Apr-16

Jan-16 Jan-17

Oct-15 Oct-16

Jun-16

Sep-16

Mar-16 Mar-17

Feb-16 Feb-17

Aug-16

Dec-15 Dec-16

Nov-15 Nov-16 May-16

Source: Company

London: Supply shortfall by price band (below GBP1,000psf)

Occupier demand 2016-2020 average annual forecast supply

25,000

20,000

15,000

10,000

5,000

0 Affordable Lower mainstream Mid mainstream Upper Mainstream (GBP450psf) (GBP450-700psf) (GBP700-1,000psf)

Source: Savills Research

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Proportion of buyers

Owner occupier Investor

100%

80%

60%

40%

20%

0%

Source: Savills Research

Beneficiary of major infrastructure works in London

EWI’s Wardian and LCI 2 projects are set to benefit from a new Crossrail I link, in our view, which is currently under construction. Crossrail is Europe’s largest infrastructure project and it is likely to have a significant impact on London’s real estate landscape. The Crossrail 1 link, which will be ready by 2018 (source: crossrail.co.uk), will deliver the first direct connection from West to East, linking all London’s main employment centres such as Heathrow with Paddington, the West End, the City and Canary Wharf. Two Crossrail stations – Canary Wharf and Custom House stations - are located within a radius of approximately one mile from LCI 2 while the Canary Wharf station is accessible via a pedestrian bridge from EWI’s Wardian project.

Elsewhere, we expect EG 2 to benefit from two rail stations namely Battersea Power Station and Nine Elms, both under the Northern Line extension. The Northern Line currently runs from High Barnet or Edgware in North London, through Central London including key transport hubs such as Tottenham Court Road, Kings Cross and Bank and onto Morden or Kennington in South London. According to Transport for London, the Northern Line extension will help to regenerate the Vauxhall, Nine Elms and Battersea areas by supporting 25,000 new jobs and more than 20,000 new homes.

We expect stronger interest on EWI’s London projects once the Crossrail 1 link and Northern Line extension are fully operational, further improving the accessibility and connectivity of these projects. We believe that this will in turn translate into stronger bargaining power for selling prices while eventually boosting the margins and GDVs of EWI’s projects.

Elsewhere, the Parramatta Light Rail is expected to start operations in 2023. Parramatta Light Rail is one of the New South Wales (NSW) Government’s latest major infrastructure projects. Stage 1 will connect Westmead to Parramatta and Carlingford via Camellia with a two-way track spanning 12km. Planning work for Stage 2 of the project from Camellia to Strathfield via Sydney Olympic Park is being developed in collaboration with Sydney Metro West.

The NSW Government has been engaging with key stakeholders in the region. Planning approval is expected in early 2018 with construction on Stage 1 to begin in 2018 (source: www.parramattalightrail.nsw.gov.au).

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LCI 2 to benefit from new Crossrail stations

Source: Company

Wardian is close to the existing Canary Wharf station

Source: Company

EG 2 is set to benefit from the Northern Line extension

Source: Company

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WV is set to benefit from Parramatta Light Rail which is slated to be opened by 2023

Source: Parramattalightrail.nsw.gov.au

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Merit 3: Veteran management team

Strong management team with impeccable track record EWI’s management team includes Although EWI is a relatively young property establishment, its management team former SPSB’s directors, executives and proponents have an enviable track record in the mature London and Australia Position in Board of Remarks property markets. EWI’s management is currently led by a team which includes EWI directors former SP Setia (SPSB MK) directors and executives with a wealth of experience, Executive Tan Sri Former CEO of from township and commercial to high-rise integrated mixed developments in the Vice Liew Kee SP Setia domestic and overseas property markets such as Singapore, Melbourne and Chairman Sin (SPSB) London. In our view, the ex-SPSB management team’s strong creative reputation Executive Dato’ Teow Former and intimate knowledge of the property industry will form a solid backbone for Director/ Leong Seng Executive EWI and take it from strength to strength. President Director and and CEO CFO of SPSB, former chairman of Redeveloping the iconic building in London Battersea Power Station We believe that the management’s most notable accomplishment in SPSB would Development be the successful bidding of the Battersea Power Station (BPS) project – one of Co Ltd the iconic buildings in the world. Together with EPF and Sime Darby (SIME MK), CFO Melissa Tan Former head, SPSB (which was led by Tan Sri Liew Kee Sin) had successfully bidded for the 39- corporate acre site on the south bank of the River Thames in London – BPS redevelopment finance of project - in 2012, beating 14 other bidders including Chelsea Football Club which SPSB intended to turn the site into an ‘iconic’ stadium (source: BBC.com). The BPS Chief of Tan Cheng Former senior redevelopment project, which will house 3,500 new homes, shops, restaurants, Design and Yong project office and retail space, is worth GBP8.7b in total GDV (source: SPSB). Planning director of SPSB

Chief of Norhayati Former GM, Testimonials of management capabilities Sales and Binti Subali group Marketing marketing and The successful launch of the Battersea Power Station project (40:40:20 owned by international SPSB:Sime Darby:EPF) Phase 1 - Circle West (GBP846m in GDV) in Jan 2013 properties of SPSB, former marked an important milestone for SPSB (source: SPSB). According to SPSB, the MD of 862 units of apartments under Phase 1 were snapped up by buyers within three Battersea weeks, surprising many local and international developers especially when the Power Station launch was considered sizeable for Londoners. Another 255 units of luxury Sdn Bhd of apartments under the Phase 2 (GBP779m in GDV; launched in May 2014) were 90% SPSB sold at circa GBP2,360 psf ASP. Apart from its strategic location backed by a CEO, Cheong Former chief world iconic building and a future tube station, the success was also attributable International Heng Leong strategic to SPSB and its partners’ right products and strategies backed by strong customer Business relations following, we believe. (UK) officer, Battersea Under Tan Sri Liew Kee Sin’s leadership, SPSB has also expanded its landbank to Power Station Melbourne. Dato’ Teow Leong Seng (current CEO of EWI) led the bid in securing Development two prime sites in Melbourne which were eventually developed into high-rise Company, GM apartments named Fulton Lane (AUD483m in GDV; source: SPSB) and Parque of Melbourne (AUD247m GDV; source: SPSB). The two projects were well received international with 100% take-up rates, according to SPSB. In our view, this is another business testimonial of EWI’s management capabilities and in-depth knowledge in the development London and Australia property markets and understanding of customer needs. (UK) of SPSB

CEO, Yap Foo - International Leong Business (Australia) Source: Company, SPSB’s annual reports

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Fast turnaround for projects

EWI adopts a fast turnaround strategy for product launches, hence, capital can be used more efficiently, we believe. LCI 2 was launched in May 2015 after the acquisition of a 75% stake in EW-Ballymore Holdings (which is currently undertaking all EWI’s London projects) was completed in April/May 2015 (SPA was signed with Ballymore in Jan 2015). This was followed by the launches of West Village in June 2015 (the site was acquired in May 2014), EG 2 and Wardian in Sep 2015. Despite the short period from launches, these projects have received decent pre-sales rates of 37-83% end-Mar 2017.

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Merit 4: Two giants go hand in hand

Entry of international property giant, GuocoLand

GuocoLand Ltd (GUOL SP; Not Rated; SGD2.2b market capitalization) has a 27% stake in EWI. GuocoLand Ltd, which is part of the Guoco Group Limited (53 HK; Not Rated; HKD29.6b market capitalisation), a member of the Hong Leong group of companies, is principally involved in property development, property investment, hotel operations and property management.

GuocoLand Ltd currently has presence in Singapore, China, Malaysia and Vietnam. According to GuocoLand Singapore website, the company’s involvement in the Malaysian property space is through its 65%-owned GuocoLand (Malaysia) Berhad (GUOL MK; Not Rated; MYR848m market capitalisation) and 21.7%-owned Tower REIT (TRET MK; Not Rated; MYR337m market capitalisation). Key integrated projects across the region include Tanjong Pagar Centre in Singapore, Shanghai Guosan Centre in China, Damansara City in Malaysia and The Canary in Vietnam, we understand. As at end-Mar 2017, it has total assets of SGD8.6b (32% from investment properties) and a net gearing of 1.05x (source: GuocoLand.com.sg).

Corporate structure of GuocoLand Ltd

Hong Leong Group

Guoco Group (Listed on Hong Kong Stock Exchange)

GuocoLand Ltd (Listed on Singapore Stock Exchange)

GuocoLand Singapore GuocoLand China GuocoLand Malaysia GuocoLand Vietnam

Source: GuocoLand.com.sg, Bloomberg

Leveraging on each other’s strength - a positive

While both EWI and GuocoLand Ltd are actively involved in the international property spaces, we believe that there is no direct competition between the two developers. EWI focuses on London and Australia property markets while GuocoLand has strong presence in Singapore and developing countries namely China and Vietnam. We are positive on the shareholders’ collaboration and believe the collaboration would complement EWI and GuocoLand’s needs and strengths in view of their well-established brandname and marketing channels in different countries (in both mature and developing property markets) as well as strong customer followings. With Guocoland being a strategic investor in EWI (the other strategic investor (27% stake) being Eco World Development Group [ECW MK; BUY]), EWI would also be able to extend its development footprint without straining its financial resources, we believe.

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Merit 5: The “Eco World” connection

Together, creating tomorrow & beyond

EWI is set to benefit from the collaboration with Eco World Development Group Bhd and the shared “ECOWORLD” branding. Under the collaboration agreement, ECW agreed not to undertake any property development or investment in countries other than Malaysia, except through EWI, while EWI agreed not to undertake any property development or investments in Malaysia. The collaboration will, however, be terminated automatically if ECW hold less than 5% shares in EWI. Currently, ECW has a 27% stake in EWI.

ECW, an aggressive partner

Eco World Development Group (ECW) is one of the leading developers in Malaysia. In less than five years, ECW has managed to accumulate 8,053 acres of land (of which 5,500 acres are undeveloped) worth MYR77.5b in remaining GDV (before taking into consideration its effective stakes of 40% in BBCC and 60% in Eco Grandeur, Eco Business Park V, Eco Horizon and Eco Sun) located throughout major cities in Malaysia. In our view, ECW has a strong and loyal customer following since SPSB times. This is evident by the total cumulative gross sales of MYR10b since 2014 (MYR3.2b in FY10/14, MYR3b in FY10/15 and MYR3.8b in FY10/16), which was better than many long established players in the Malaysian property space, we believe. Todate, ECW has eighteen ongoing projects focusing in the Klang Valley, Johor and Penang areas (source: ecoworld.my).

Riding on ECW’s network

EWI has also entered into a brand licensing agreement with ECW, which grants it the non-exclusive, worldwide, and royalty-free licence to use the “ECOWORLD” and “CREATING TOMORROW & BEYOND” marks, including logos, brands and other features. The shared “ECOWORLD” branding will allow EWI to leverage on the established brandnames, sales and marketing initiatives, and goodwill of ECW. Also, EWI can tap onto ECW’s extensive network and customer base, and cross- sell its products to ECW’s customers who may be seeking to purchase properties overseas at a reasonable commission rates of 1.8%-3.0% charged by ECW.

Based on sales data at end-Dec 2016, 17-19% of EWI’s London and Australia property buyers were Malaysians. We reckon that the Malaysian buyers were very likely also the existing/repeated customers of ECW. It appears to us that ECW’s strong customer following and brandname are part of the reasons contributing to the decent pre-sales of MYR5.5b in EWI’s London projects (or GBP1,023m including English National Ballet’s Pre-let at LCI 2 of GBP5m and ground rent of GBP60.3m) and MYR804m in Australia (or AUD249m) since their launches in 2015.

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Buyer profile for EWI’s London projects

Middle East & North Africa (MENA), others 5% China & Hong Kong 18% Singapore 5% U.K 55% Malaysia 17%

Source: Company

Buyer profile for EWI’s Australia project

Indonesia 8%

China & Hong Kong 22% Australia 49%

Singapore 2% Malaysia 19%

Source: Company

Eco World Development Group (ECW)’s landbank & GDV summary Projects Landbank (acre) Estimated total Cumulative sales Remaining GDV GDV (FY2014-FY2016) Total Undeveloped (MYRb) MYRb MYRb Saujana Glenmarie 25.9 - 0.1 0.8 0.0 Eco Sky 9.6 - 1.0 0.7 0.3 Eco Majestic 1,073.1 486.0 11.1 2.1 9.1 Eco Forest 492.7 492.7 3.5 - 3.5 Eco Sanctuary 308.7 89.7 8.0 1.1 6.9 BBCC 19.4 8.7 8.8 0.7 8.1 Eco Grandeur 1,679.8 1,340.0 12.5 0.4 12.1 Eco Business Park V 518.6 518.6 2.7 - 2.7 Eco Ardence 533.9 443.1 8.6 0.3 8.3 Total Eco Central 4,661.7 3,378.8 56.3 5.4 50.9 Eco Botanic 325.1 118.6 3.8 1.5 2.3 Eco Spring & Summer 613.8 276.8 5.9 1.1 4.7 Eco Tropics 743.6 501.5 3.4 0.7 2.7 Eco Business Park I 612.0 320.0 3.8 0.6 3.2 Eco Business Park II 383.6 331.6 3.0 0.1 2.9 Eco Business Park III 248.0 157.6 2.0 0.2 1.8 Total Eco South 2,926.1 1,706.1 21.9 4.2 17.6 Eco Terraces 12.8 - 0.4 0.1 0.3 Eco Meadows 76.5 39.4 0.9 0.3 0.6 Eco Horizon & Eco Sun 374.6 374.6 7.8 - 7.8 Eco Macalister 1.1 1.1 0.2 - 0.2 Total Eco North 465.0 415.1 9.3 0.4 8.9 Grand total 8,052.7 5,500.0 87.5 10.0 77.5 *as at Oct 2016; Source: ecoworld.my

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Merit 6: Ample headroom to grow

Healthy balance sheet

There is room for landbanking. We expect EWI to stay in net cash position post the acquisition of the Yarra One land in Melbourne versus the industry average of ≤50% net gearing (for developers under our coverage; except for ECW, whose net gearing is expected to be at >0.6x by end-2017, we estimate). EWI’s healthy balance sheet will provide financial flexibility to EWI and allow it to take on additional debt of up to MYR2b (assuming a net gearing threshold of 50%) without the need to raise funds in the equity market for future acquisition, we estimate.

Utilisation of IPO proceeds – MYR2.58b Details of utilisation % Debt repayment 48.0 Settlement of the acquisition of EW Investment 1.5 Working capital 48.5 Estimated listing expenses 2.1 Total: 100 Source: Company

Focus to be on mature property markets – UK, Australia

Management’s focus will remain on the mature property markets – UK and Australia - while a new developing market which it would consider is China where it could leverage on GuocoLand’s extensive experience there. Focus areas will be on developing mid-to-high end residential-led, mixed-used developments in key urban centres targeting the medium to high-income earners and to diversify its sales base by broadening its portfolio with regards to geographical location. To shorten the development time (from acquisition to launch), EWI has plans to seek out projects with the relevant planning and development consents already in place.

More to come …

EWI does not discount the possibility of co-investing or jointly developing potential sites with suitable partners such as GuocoLand and Ballymore to limit substantial upfront payment for land costs and/or tap onto its partners’ in-depth knowledge in the various property markets, marketing channels and customer base.

There is no further information for now. Our back-of-the-envelope calculation shows that our RNAV estimate could enhance by +MYR179m for every MYR2b GDV worth of additional projects, assuming: (i) a 100% stake in the projects; (ii) 18% pretax margin, and (iii) a 4-year development period.

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Risks and concerns

Uncertainties arising from UK’s Brexit

EWI has high exposure to the UK’s economic condition and GBP movement as 87% of its total GDV is derived from its London projects. The results of UK’s general election on 8 June 2017 in which no-single political party garnered majority in Parliament brings back concerns on UK’s eventual Brexit terms. This may continue to weigh on the currency and foreign buying interest in the London property market until the precise economic impact becomes clearer. To us, it is still too early to gauge and quantify the potential impact of Brexit on different international buyers groups for now. In our view, potential buyers may adopt a wait-and-see approach for the time being and juggle between the pound’s weakness (which means cheaper properties for the foreign buyers) and the uncertainties around Brexit. The GBP outlook remains challenging over the near term as uncertainties remain on (i) UK’s exit plan and strategies and (ii) post- Brexit implications, in our view. Our FX Research team forecasts MYR5.504/GBP at end-2Q17, MYR5.355/GBP end-3Q17, MYR5.504/GBP end-4Q17 and MYR5.655/GBP end-1Q18.

Elsewhere, our FX Research team sees downside risks in the AUD as the country may lose its AAA rating this year. Our FX Research team expects AUD to weaken to MYR3.139/AUD at end-2Q17 before trending up to MYR3.188/AUD end-3Q17, MYR3.354/AUD end-4Q17 and MYR3.393/AUD end-1Q18.

Policy risks

We do not rule out further policy tightening measures by the UK and Australia authorities.

According to Savills Research, the details of Sadiq Khan and Murray’s housing policy may include: (i) Londoners being given access to the new build housing market first, for a limited period of time, after which foreign buyers might enter the market, (ii) requirement for 50% of affordable homes in large developments, (iii) setting up a none-profit letting agency, (iv) an inquiry into foreign property ownership and the impact of foreign investments on the London property market, (v) introducing the London Living Rent and (vi) building more affordable homes on public land (source: The guardian.com, International Business Times, Standard.co.uk). In our view, the policy risks would be partially cushioned by EWI’s diversification into different market segments in London, catering for both local and international demand. We understand that 55% of EWI’s London properties’ buyers are locals - who are less susceptible to new property measures that target the foreign buyers.

Elsewhere, Australia’s banking regulator has further tightened lending restrictions. Under the new curbs, home lenders will have to restrict interest- only loans to 30% of total new residential mortgages. Currently, interest-only loans, favored by borrowers taking advantage of tax breaks on property investments, account for c.40% of residential mortgages (source: Bloomberg).

Competition from existing units

EWI faces demand competition not only from the nearby projects but also the properties previously launched by its partner. Units launched by Ballymore under EG Phase 1 and LCI Phase 1, have been completed. Completed units under EG Phase 1 and LCI Phase 1 could pose a threat to EWI’s existing and future launches in EG and LCI. To differentiate its products and maintain its products’ attractiveness, EWI has upgraded EG 2 to better specifications, we understand.

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Financials

Key assumptions

Our forecasts are based on EWI’s initial portfolio of property assets (i.e. LCI 2, EG 2, Wardian, West Village) and the recently-acquired Yarra One. We assume: a) GBP224m sales from its three London projects (the GBP224m is based on EWI’s 75% effective stake) and AUD52m sales from West Village and Yarra One (incorporating only EWI’s 80% stake in Yarra One’s sales) in FY10/17, GBP266m/AUD69m sales in FY10/18, GBP305m/AUD52m in FY10/19 and GBP70m/AUD55m in FY10/20.

In total, these amount to MYR1.4b/MYR1.7b/MYR1.8b/MYR0.6b in effective sales in FY17/18/19/20. EWI has fully launched its projects in London and Sydney. As at end-Jan 2017, EWI had locked in pre-sales of MYR6.4b, providing medium-term earnings visibility. b) Currency rate of MYR5.425/GBP (average rate for the period from 24 June 2016 to 8 May 2017) and MYR3.231/AUD (average from 1 Jul 2016 to 8 May 2017) for the entire period of our earnings forecasts. c) Corporate tax rate of 19% between 2016 and 2019 and 17% thereafter for the London projects, and corporate tax rate of 30% for the Australia projects. d) Borrowing costs of 5% for the London projects and 6% for the Australia projects. e) An additional fee (also known as ‘promote fee’) of GBP57m in total which is calculated based on the internal rate of return (IRR) of the LCI 2, EG 2 and Wardian projects on a portfolio basis.

The ‘promote fee’ is payable to Whistleglade company if the combined IRR is positive, on the completion of the sale of the grant of lease (for a term not less than 99 years) of 96.5% or more of all the units (in value) constructed within the property portfolio or upon the disposal of all or substantially all of the shares or right, title and interest there in of: 1) EW-Ballymore London City, EW-Ballymore Embassy Gardens and EW-Ballymore Arrowhead or 2) EW- Ballymore Holding. This additional fee shall be limited to an amount not exceeding GBP110m in total.

Accounting policies and practices

The accounting standards in the UK and Australia provide for revenue from property sales in the UK and Australia to be recognised by EWI only when the risks and rewards of the property sold have been fully transferred to the buyers, which is upon physical completion and handover of vacant possession of the property. Hence, timing of completion for each project is paramount to our earnings forecasts. In our forecasts, we assume:

1) LCI 2’s blocks A & M, B, C, D, E to be handed over in 1H 2018 (block A, M) and 1H 2019 (block B, C, D, E),

2) EG 2’s blocks A04, A05 and A03 to be handed over in 1H 2018, 1H 2019 and 2H 2021 respectively,

3) Wardian’s East and West Tower to be handed over in 1H 2020 (East Tower) and 2H 2020 (West Tower),

4) West Village to be handed over by 1H 2020, and

5) Yarra One to be handed over by 2H 2020.

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While EWI currently owns a 75% stake in Eco World-Ballymore Holding Co Ltd (the holding company for all EWI’s London projects), Eco World-Ballymore Holding Co Ltd is treated as a joint venture instead of a subsidiary as EWI requires unanimous consent with Ballymore for all significant decisions over the relevant activities of Eco World-Ballymore Holding Co Ltd and its subsidiaries under the contractual agreement. Hence, the recognition of all EWI’s UK projects’ earnings/losses will be accounted for using the equity method and earnings/losses will only be reflected under ‘share of profits’ in the P&L. As for the 100%-owned West Village and 80%-owned Yarra One projects, earnings will be recognized using the consolidation method.

Our earnings forecasts

We expect EWI to stay in the red in FY10/17. We estimate the net loss to be around –MYR104m in FY10/17 mainly due to: (i) the share of losses from Eco World-Ballymore, (ii) administrative and marketing expenses for West Village and Yarra One, and (iii) listing expenses of about MYR5.3m to be recognised in the Profit & Loss (P&L) statement.

However, EWI should be profitable in FY10/18 (MYR226m net profit), FY10/19 (MYR437m) and FY10/20 (MYR565m) with the completion and handover of LCI 2’s blocks A, B, C, D, E & M, EG 2’s blocks A04 and A05, Wardian’s East and West towers, West Village and Yarra One. As for EG 2’s A03 block (last tower), we only expect earnings to come in by FY10/21.

Dividend payment only from FY10/19

We do not expect any dividend payment in FY10/17 and FY10/18 as cash will likely be retained as working capital for the construction of EWI’s UK and Australia projects. Nevertheless, we expect a dividend payout of 25% of net profit in FY10/19 and FY10/20 translating into a dividend payment of MYR109m (4.6sen/sh) and MYR145m (5.9sen/sh), respectively. This translates into 4.5% yield (for FY10/19) and 5.8% (FY10/20) based on the current share price.

Healthy balance sheet

We expect EWI to stay in net cash position post the acquisition of the Yarra One site in Melbourne. We understand that EWI is actively looking for new landbank in London and Australia. Note that we have not factored in any potential land acquisition in our earnings forecasts yet.

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Valuations

Favours RNAV over PER and PBV

The property industry is cyclical as it is highly dependent on macroeconomic factors that affect buying sentiment/demand for properties. This, in turn, affects the pre-sales and hence, the earnings visibility of property companies. In deriving the fair values, we apply the Revised Net Asset Value (RNAV) valuation methodology. In our view, RNAV is a better valuation methodology for property developers versus PER and PBV as the latter will not be able to capture the intrinsic project / land values during the early years of development. Also, the PER valuation method cannot be applied when accounting revenue recognition is on a completion basis.

RNAV dominated by London projects

Our MYR1.49 fully diluted RNAV/sh for EWI is based on the summation of the discounted cash flows of the individual projects. Our basis include: (i) cash flow projections tied to the timing of each project’s individual phases’ hand-over to the buyers and (ii) required returns ranging from 8.7-12.3%.

Out of our MYR1.49 FD RNAV/sh, 28% is derived from the London projects, 3% from the Australia projects and the remaining is attributed to shareholders’ fund and proceeds raised from the IPO listing and warrants less: i) an estimated promote fee of MYR161m (present value of GBP57m) which is payable to Whistleglade company and ii) listing expenses of MYR53m. Note that our RNAV estimates have yet to include potential land acquisitions.

Assumptions used for discount rates Risk free rate Rf 1.3%-2.8% 10-year government bond yields for UK (1.3%) and Australia (2.8%)

Market return Rm 10.5% Maybank KE house’s assumption

Beta β 0.8-1.2 Our assumptions based on the perceive risk of each project Cost of equity Ke 8.7%-12.3% = Rf + (Rm – Rf) β

Source: Maybank Kim Eng

MYR1.12 TP, on 0.75x RNAV

EWI is the first and only Malaysia listed developer with pure overseas exposure, hence, it has no direct valuation comparable in Malaysia. Since EWI is led by former SPSB’s directors and executives and has similar overseas exposures as SPSB (UK and Australia), we have benchmarked EWI against SPSB. We apply a 0.75x RNAV peg (vs. 0.8x for SPSB which also has domestic property projects), translating into MYR1.12 target price. In deciding the RNAV multiple, we have also drawn on macro factors like the property industry cycle and specific factors such as project locations and types, the management team and track record in project executions as well as sales record.

In addition, we have considered EWI’s significant exposure in London property market despite its more diversified market segments and locations in London that could lower the sales risk. GuocoLand, being a major shareholder would allow EWI to tap onto the latter’s well-established marketing channels and strong customer followings in Singapore and China, providing the long-term upside. Also, EWI has a relatively stronger balance sheet. To us, EWI is a RNAV play.

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Our RNAV estimates

Projects Stake Acre Total GDV Total GDV Exchange rate Discount Pretax NPV (MYR m) (%) (GBP m / (MYR m) (MYR5.43/GBP, rate (%) ** margin @ 9%-12% AUD m) MYR3.23/AUD)^ (%) discount rate London, UK 1 London City Island phase 2 75% 6.0 691.2 3,750 5.43 8.7% 18% 353.0 2 Embassy Gardens Phase 2 75% 5.7 932.5 5,059 5.43 12.3% 20% 426.4 3 Wardian 75% 1.4 566.1 3,071 5.43 10.5% 18% 248.1 Sub-total: 13.0 2,189.8 11,880 1,027.5

Sydney, Australia * 4 West Village 100% 1.2 306.3 989 3.23 9.0% 15% 81.6 5 Yarra One 80% 218.0 704 3.23 9.0% 15% 37.7 Sub-total: 1.2 524.3 1,694 119.3

Grand total: 14.2 13,573.5 1,146.8

(-) Promote fee of GBP57m (net of 10.5% (160.9) tax saving) *** (+) Shareholders fund as at Oct 107.9 2016 (MYRm) : (+) MYR1.20/sh IPO price; 2,531.2 2,153.5m shares minus listing expenses of MYR53m Total RNAV (MYRm) (a) : 3,625.0

Warrant proceeds (MYRm) ^^ 1,393.9

Total RNAV with warrant 5,018.9 proceeds (MYRm) (b) :

Existing shares (m shares) 2,400.0 Additional shares from the 960.0 exercise of warrants (m shares) Enlarged share capital (m 3,360.1 shares)

Fully diluted RNAV (MYR/sh) 1.49 Our target price (MYR/sh) based 1.12 on 0.75x RNAV ^ Currency rate of MYR5.425/GBP (average rate for the period from 24 June 2016 to 8 May 2017) and MYR3.231/AUD (average from 1 Jul 2016 to 8 May 2017) ^^ Two warrants for every five EWI shares at an exercise price of MYR1.452; 5-year exercise period * We have included the GST and GST input credits into our GDV calculation for West Village ** Discount rate assumptions (Risk free rate: 1.34% (UK's 10-year government bond yield) - 2.76% (Australia's 10-year government bond yield), Beta: 0.8-1.2, Market return: 10.5%) *** Present value of GBP57m estimated promote fee after net of tax savings. The promote fee will be due in 2021 upon the completion of all EWI- Ballymore projects Source: Maybank Kim Eng

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Sensitivity analysis

Currency

Changes in the currency cross-rate will impact the MYR-translated future cash flows and net profits of EWI and consequently, our RNAV estimates. The assumptions for Currency have been set out earlier. The effect of variations in the Currency on the RNAV estimates is set out below:

RNAV change on changes in Currency RNAV estimate (MYR/sh) Currency (%) 5% above case 1.51 Base case 1.49 5% below case 1.48

Source: Maybank Kim Eng

Selling prices

Changes in the Selling Prices will impact the future cash flows and net profits of EWI and, consequently, our RNAV estimates. The effect of variations in the Selling Prices on the RNAV estimates is set out below:

RNAV change on changes in Selling Prices RNAV estimate (MYR/sh) Selling prices (%) 5% above case 1.51 Base case 1.49 5% below case 1.48

Source: Maybank Kim Eng

Construction costs

Changes in the Construction Costs will impact the future cash flows and net profits of EWI and consequently, our RNAV estimates. The effect of variations in the Construction costs on the RNAV estimates is set out below:

RNAV change on changes in Construction Costs RNAV estimate (MYR/sh) Construction Costs (%) 5% above case 1.46 Base case 1.49 5% below case 1.53

Source: Maybank Kim Eng

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Promote fee

Changes in the Promote Fee will impact the future cash flows and net profits of EWI and consequently, our RNAV estimates. The effect of variations in the Promote Fee on the RNAV estimates is set out below:

RNAV change on changes in Promote Fee RNAV estimate (MYR/sh) Promote Fee (%) 5% above case 1.49 Base case 1.49 5% below case 1.50

Source: Maybank Kim Eng

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FYE 31 Oct FY16A FY17E FY18E FY19E FY20E Key Metrics P/E (reported) (x) na (18.5) 10.9 5.7 4.4 Core P/E (x) nm nm 10.9 5.7 4.4 Core FD P/E (x) nm nm 10.9 5.7 4.4 P/BV (x) 2.4 0.8 0.9 0.8 0.7 P/NTA (x) (13.8) 0.8 0.9 0.8 0.7 Net dividend yield (%) 0.0 0.0 0.0 4.4 5.7 FCF yield (%) nm nm nm 4.7 59.4 EV/EBITDA (x) na nm nm nm 0.8 EV/EBIT (x) na nm nm nm 0.7

INCOME STATEMENT (MYR m) Revenue 0.7 0.5 0.6 0.7 1,693.9 Gross profit (4.3) (4.7) (4.7) (4.8) 429.3 EBITDA (37.6) (63.4) (60.5) (61.5) 380.6 Depreciation 0.0 (0.7) (1.1) (1.4) (1.6) Amortisation 0.0 0.0 0.0 0.0 0.0 EBIT (4.3) (5.4) (5.8) (6.2) 427.8 Net interest income /(exp) (52.8) 0.0 3.4 2.5 (107.0) Associates & JV (53.9) (58.2) 267.4 480.7 389.6 Exceptionals (74.9) 0.0 0.0 0.0 0.0 Other pretax income 0.0 0.0 0.0 0.0 0.0 Pretax profit (219.3) (122.9) 208.1 418.9 660.1 Income tax 2.2 19.4 17.8 18.5 (81.2) Minorities (3.0) 0.0 0.0 0.0 (14.5) Perpetual securities 0.0 0.0 0.0 0.0 0.0 Discontinued operations 0.0 0.0 0.0 0.0 0.0 Reported net profit (220.1) (103.5) 225.9 437.4 564.5 Core net profit (220.1) (103.5) 225.9 437.4 564.5

BALANCE SHEET (MYR m) Cash & Short Term Investments 18.6 1,615.8 1,171.6 1,488.3 3,099.9 Accounts receivable 0.3 0.2 0.2 0.3 0.0 Inventory 174.0 415.2 679.8 1,005.1 0.0 Property, Plant & Equip (net) 2.3 3.6 4.5 5.2 5.6 Intangible assets 126.3 126.3 126.3 126.3 126.3 Investment in Associates & JVs 873.1 1,304.5 1,710.3 1,396.8 1,218.8 Other assets 30.9 15.5 16.5 17.3 10.6 Total assets 1,225.5 3,481.2 3,709.2 4,039.3 4,461.3 ST interest bearing debt 923.9 923.9 923.9 923.9 923.9 Accounts payable 1.7 1.2 1.4 1.6 0.0 LT interest bearing debt 0.0 0.0 0.0 0.0 0.0 Other liabilities 187.0 10.0 12.0 14.0 0.0 Total Liabilities 1,112.8 935.5 937.7 939.7 923.9 Shareholders Equity 107.9 2,540.9 2,766.8 3,094.8 3,518.2 Minority Interest 4.8 4.8 4.8 4.8 19.3 Total shareholder equity 112.7 2,545.7 2,771.6 3,099.6 3,537.4 Perpetual securities 0.0 0.0 0.0 0.0 0.0 Total liabilities and equity 1,225.5 3,481.2 3,709.2 4,039.3 4,461.3

CASH FLOW (MYR m) Pretax profit (219.3) (122.9) 208.1 418.9 660.1 Depreciation & amortisation 0.0 0.7 1.1 1.4 1.6 Adj net interest (income)/exp 50.7 0.0 3.4 2.5 (107.0) Change in working capital (4.0) (417.8) (263.4) (324.2) 996.2 Cash taxes paid 8.7 19.4 17.8 18.5 (81.2) Other operating cash flow (5.3) 0.0 0.0 0.0 0.0 Cash flow from operations (39.2) (520.6) (33.1) 117.1 1,469.7 Capex (0.7) (2.0) (2.0) (2.0) (2.0) Free cash flow (39.9) (522.6) (35.1) 115.1 1,467.7 Dividends paid 0.0 0.0 0.0 0.0 (109.4) Equity raised / (purchased) 119.2 2,536.5 0.0 0.0 0.0 Perpetual securities 0.0 0.0 0.0 0.0 0.0 Change in Debt 238.5 0.0 0.0 0.0 0.0 Perpetual securities distribution 0.0 0.0 0.0 0.0 0.0 Other invest/financing cash flow (306.7) (416.7) (409.2) 201.7 253.3 Effect of exch rate changes 0.0 0.0 0.0 0.0 0.0 Net cash flow 11.1 1,597.2 (444.3) 316.7 1,611.6

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FYE 31 Oct FY16A FY17E FY18E FY19E FY20E Key Ratios Growth ratios (%) Revenue growth nm (28.7) 18.6 14.7 255,739.7 EBITDA growth nm nm nm nm nm EBIT growth nm nm nm nm nm Pretax growth nm nm nm 101.3 57.6 Reported net profit growth nm nm nm 93.6 29.1 Core net profit growth nm nm nm 93.6 29.1

Profitability ratios (%) EBITDA margin nm nm nm nm 22.5 EBIT margin nm nm nm nm 25.3 Pretax profit margin nm nm nm nm 39.0 Payout ratio 0.0 0.0 0.0 25.0 25.0

DuPont analysis Net profit margin (%) nm nm nm nm 33.3 Revenue/Assets (x) 0.0 0.0 0.0 0.0 0.4 Assets/Equity (x) 11.4 1.4 1.3 1.3 1.3 ROAE (%) na na na na na ROAA (%) (35.4) (4.4) 6.3 11.3 13.3

Leverage & Expense Analysis Asset/Liability (x) 1.1 3.7 4.0 4.3 4.8 Net gearing (%) (incl perps) nm net cash net cash net cash net cash Net gearing (%) (excl. perps) nm net cash net cash net cash net cash Net interest cover (x) na 137.7 1.7 2.5 4.0 Debt/EBITDA (x) nm nm nm nm 2.4 Capex/revenue (%) 103.2 410.7 346.3 302.1 0.1 Net debt/ (net cash) 905.3 (691.9) (247.7) (564.4) (2,176.1) Source: Company; Maybank

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Property Profiles

London City Island (Phase 2)

Designed to complement the neighbouring business district, London City Island is an island-style residential neighbourhood on the Leamouth Peninsula near Canary Wharf, London. The site is bounded by the River Lea and has views over the O2 Arena (currently one of Europe’s largest indoor concert venue) and the Canary Wharf estate. London City Island also have good links to public transportation, with a specially-commissioned footbridge (known as the Red Bridge) at London City Island’s northernmost point providing direct and convenient access to the Canning Town station situated on the opposite bank of the River Lea.

Trinity Square, a landscaped event plaza located at the centre of the development which has water features and outdoor dining terraces is expected to be anchored by the English National Ballet and its ballet school at the southern end of the square. The arrival of the English National Ballet is expected to transform London City Island into a new arts and culture destination for London. EWI, in a 75:25 JV with Ballymore Group, is developing Phase 2 of the London City Island.

Overview of London City Island

LIGHTHOUSE * COMMUNITY ORCHARD * BUILDING CENTRE BUILDING & CITY MONTAGU ENGLISH ISLAND HOUSE NATIONAL ARTS CLUB BALLET ALBION HOUSE BRIDGEWATER HOUSE

FOUNDRY * BUILDING

FARADAY * BUILDING

RED BRIDGE

Source: Company

London City Island Phase 2 Location Located on the Leamouth Peninsula near Canary Wharf, London Description 1,130 private residential units 15 units of affordable homes Commercial area (approx. 179,037 sq ft) Estimated GDV* GBP 691.3m First Launch May 2015 Estimated Completion 1H 2019 Total Land Area (approx.) 5.95 acres Land Title Predominantly freehold with a small parcel of leasehold of 125 years from 10 March 2005 Market Value of Land* GBP 156.8m Total Units Launched 1,130 Total Units Pre-Sold^ 779 ASP per sq ft^ GBP 828 % of pre-sold units^ 68.9% Sales Value^ GBP 393.6m ^ as at 31 December 2016; excluding English National Ballet Pre-let for LCI2 of GBP5m and ground rent of GBP24.7m * Valuation report dated 14 September 2016 by JLL Source: Company June 14, 2017 28

Eco World International

London City Island (Phase 2): Nearby Projects

Description of development Location Unit type Price per sq ft

Eco World International 1.5 miles east of Canary Wharf, Suite, 1 Bed, 2 Bed, A: GBP 803 London City Island (Phase 2) 0.6 miles north of Greenwich 3 Bed, 4/5 Bed B: GBP 857 Peninsula (O2 Arena), 2.9 miles M: GBP 816 south of Stratford and 0.8 miles west of Royal Victoria Docks

London City Island (Phase 1) Adjacent to Subject Property Studios, 1 Bed, 2 GBP 569-835 Four predominantly residential Phase 1 Bed, 3 Bed buildings comprising 561 residential units

Manhattan Plaza, Poplar 0.6 miles west of Subject 1 Bed, 2 Bed, 3 Bed, GBP 640-810 Business Park, E14 Property TH A mixed use development providing 120 units and commercial accommodation by Telford Homes

Providence Tower, New 0.6 miles to the south west of Studios, 1 Bed, 2 GBP 805 Providence Wharf, E14 Subject Property Bed, 3 Bed (average resale A residential led tower (1,050 rate) residential units) rising to 43 storeys with commercial and a hotel by Ballymore

Horizons Tower, Yabsley 0.8 miles south west of the 1 Bed, 2 Bed, 3 Bed GBP 748 Street, E14 Subject Property A 26 storey development comprising 190 residential units (including 59 immediate units) by Telford Homes

Royal Wharf, North Woolwich 1.6 miles south east of the Suites, 1 Bed, 2 PH1: GBP 650 Road, E16. Subject Property Bed, 3 Bed, TH PH2: GBP 642 A 3,300 residential led PH3: GBP 710 masterplan by Ballymore and TH: GBP 515 Oxley Holdings and comprises three phases

Royal Gateway, Silvertown 1 mile east of Subject Property Studios, 1 Bed, 2 GBP 568 Way, Canning Town, E16 Bed A 336 apartment development across five blocks by Galliard Homes Hoola, Tidal Basin Road, 0.6 miles east of Subject 1 Bed, 2 Bed GBP 768 London, E16 Property A development by HUB residential comprising of 360 one, two and three bedroom apartments across two 25 storey towers

Waterside Park, Royal Docks, 0.8 miles east of the Subject 1 Bed, 2 Bed, 3 Bed GBP 650 London, E16 Property A Barratt Homes development situated in the Royal Docks adjacent to Thames Barrier Park. 780 new homes

Source: Company

June 14, 2017 29

Eco World International

London City Island (Phase 2): Nearby Projects (continued)

Description of development Location Unit type Price per sq ft

The Liberty Building, 1.5 miles south west of the 1 Bed, 2 Bed, 3 Bed GBP 865 Limeharbour, London, E14 Subject Property A Telford Homes development located on the Isle of Dogs comprising 134 apartments over a 25 storey tower

The Madison, Marsh Wall, 1.3 miles south west of the Suites, 1 Bed, 2 Bed, GBP 1,070 London, E14 Subject Property 3 Bed A 53 storey residential tower scheme by LBS Properties providing for 423 apartments

Royal Victoria Residence, Tidal 0.8 miles east of Subject 1 Bed, 2 Bed GBP 680 Basin Road, London, E16 Property City & Docklands development providing for 161 residential apartments over single 23 storey tower

Turnberry Quay, London, E14 1.6 miles to the south west of 1 Bed, 2 Bed, 3 Bed GBP 925 Lower rise dockside Subject Property development by Bellway Homes providing for 89 apartments in 13 storey block

Townhouses: Marine Wharf, 3.1 miles south west of the 4 Bed TH GBP 671 Mary Rose Square, London, Subject Property SE16 Berkeley Homes development comprising 182 apartments and 9 townhouses recently completed and experiencing resales

Townhouses: Goodhart Place, 2 miles west of the Subject 3 Bed TH GBP 702 Limehouse, London, E14 Property Dockside property of 1990’s construction

Townhouses: Greenland Quay, 3.1 miles south west of Subject 4 Bed TH GBP 877 London, SE16 Property Modern townhouse development of 1990’s construction with Canary Wharf views

Townhouses: Mariners Mew, 2.2 miles south of Subject 5 Bed TH GBP 522 Isle of Dogs, E14 Property Modern townhouse development with riverside position

Townhouses: Brunswick Quay, 3.3 miles to south west of the 4 Bed TH GBP 652 Canada Water, SE16 Subject Property Dockside property of 1990’s construction

Townhouses: Brighlingsea 2.3 miles to the west of the 4 Bed TH GBP 643 Place, Limehouse, E14 Subject Property Source: Company

June 14, 2017 30

Eco World International

Embassy Gardens (Phase 2)

Embassy Gardens is located at the heart of Nine Elms, a London neighbourhood straddling the northern fringes of the London boroughs of Wandsworth and Lambeth. The Nine Elms area is currently undergoing regeneration as part of the re-development of the South Bank of London and enjoys three kilometres of uninterrupted River Thames frontage. It is slated to be London’s new diplomatic precinct, with the planned relocation of the United States and Dutch embassies there. The project to relocate the United States Embassy to Nine Elms is expected to be completed in the first half of 2017. Embassy Gardens is also well served by public transportation, with Vauxhall station (National Rail and London Underground) located within approximately one kilometre. Public transportation development in the Nine Elms area is expected to improve further with the planned extension of the Northern Line from the Kennington station to two new stations, namely Nine Elms and Battersea Power station, scheduled to open in 2020. EWI, in a 75:25 JV with Ballymore Group, is developing Phase 2 of the Embassy Gardens.

Artist’s impression of the roof garden and floating transparent sky pool

Source: Company

Embassy Gardens (Phase 2) Location Situated within the Nine Elms regeneration area, located on the south side of the River Thames Description 709 private residential units 163 units of affordable homes Commercial area (approx. 29,429 sq ft) Estimated GDV * GBP 932.5m First Launch September 2015 Estimated Completion 2H 2021 Total Land Area (approx.) 5.71 acres Land Title Freehold Market Value of Land* GBP 314m Total Units Launched 430 Total Units Pre-Sold^ 149 ASP per sq ft^ GBP 1,499 % of pre-sold units^ 34.7% Sales Value ^ GBP 214m ^ as at 31 December 2016; excluding ground rent of GBP21.8m * Valuation report dated 14 September 2016 by JLL Source: Company

June 14, 2017 31

Eco World International

Embassy Gardens (Phase 2): Nearby Projects

Description of development Location Unit type Price per sq ft (GBP)

Eco World International 5.5 miles to the West of Canary Studios, 1 Bed, 2 GBP1,517 Embassy Gardens (Phase 2) Wharf and 2.8 miles to the Bed, 3 Bed, PH south of the West End (Oxford Circus)

Embassy Gardens (Phase 1) 0.2 miles north west of the Achieved prices This phase of the subject Subject Property at initial launch Masterplan launched in Q2 in Q2 2013: 2013, where 541 units were sold GBP 800-1,800 off plan Resale price: GBP 1,167

Battersea Power Station (Phase 0.6 miles to the west of the GBP 1,091 1) Subject Property This phase within the Power Station development comprises 866 units and was launched in Q3 2013 and was sold out (exeption of 5 penthouses) by April 2014

Battersea Power Station (Phase 0.6 miles to the west of the GBP 2,158 2) Subject Property This phase within the Power Station development comprises 255 units and was launched in Q1 2014. The most comparable blocks within this development are the “Switch House” blocks, which contain 224 units within Switch House East and Switch House West

Battersea Power Station (Phase 0.6 miles to the west of the Gehry building: 3) Subject Property GBP 1,810 This phase within the Power Foster building: Station development comprises GBP 1,538 1,305 units and was launched in Q4 2014. This phase will include the new Battersea Underground Station (Zone 1). There are two buildings within this phase, named the Gehry building and the Foster building Source: Company

June 14, 2017 32

Eco World International

Wardian London

Wardian London, located at the Isle of Dogs in the London Borough of Tower Hamlets, is situated next to Canary Wharf. In addition to apartment units, the towers will also include retail, leisure and café amenities and a new, landscaped public plaza. Wardian London will have views over South Dock towards Canary Wharf (which is approximately three-minute walk away), with a westerly panorama of the London cityscape.

Wardian London benefits from good links to public transport. The South Quay station (which is served by the DLR) is only approximately 500 metres to the east of the site. The South Quay station provides access to the city of London (Bank station) is approximately 17 minutes on the DLR. The Canary Wharf station (which is served by the London Underground) is accessible via a pedestrian bridge over South Dock. EWI, in a 75:25 JV with Ballymore Group, is developing this project.

Artist’s impression of the residents’ sky lounge

Source: Company

Wardian London Location Located at the Isle of Dogs in the London Borough of Tower Hamlets, situated next to Canary Wharf Description 626 private residential units 138 units of affordable homes Commercial area (approx. 6,448 sq ft) Estimated GDV* GBP 566.1m First Launch September 2015 Estimated Completion 1H 2020 Total Land Area (approx.) 1.35 acres Land Title Freehold Market Value of Land* GBP 89.1m Total Units Launched 626 Total Units Pre-Sold^ 407 ASP per sq ft^ GBP1,189 % of pre-sold units^ 65.0% Sales Value^ GBP 326.6m ^as at 31 December 2016; excluding ground rent of GBP13.8m *Valuation report dated 14 September 2016 by JLL Source: Company

June 14, 2017 33

Eco World International

Wardian London: Nearby projects

Description of development Location Unit type Price per sq ft

Eco World International Approximately one mile west of Studios, 1 Bed, 2 GBP 1,195 Wardian London the Greenwich Peninsula (O2 Beds, 2 Bed The East Tower was launched in Arena), 2.6 miles south west of Penthouse, 3 Bed the end of September 2015 and Canning Town and 1.6 miles Penthouse the West Tower in April 2016. south east of Limehouse Dock

South Quay Plaza, South Quay, 0.2 miles east of the Subject Studios, 1 Bed, 2 GBP 1,198 Isle of Dogs, E14 Property Beds, 3 Beds, 3 Bed A Berkeley Group development Penthouse comprising 700 private units. The scheme was launched in Q3 2015, with circa 257 units having been achieved as at the valuation date

10 Park Drive, Canary Wharf, 0.4 miles east of the Subject Studios, 1 Bed, 2 GBP 1,100 E14 Property Beds, 3 Beds A Canary Wharf Group development situated within the Canary Wharf Estate, launched in Q3 2015. The first release consists of 355 units which is 80% sold

Dollar Bay, Lawn House, Close, 0.7 miles east of the Subject Studios, 1 Bed, 2 GBP 944 Isle of Dogs, E14 Property Beds, 3 Beds (including A Mount Anvil Development winter gardens) comprising 111 dwellings, GBP 1,152 marketing commenced in mid- (excluding 2014 winter gardens)

Maine Tower, Harbour 0.3 miles south east of the Studios, 1 Bed, 2 GBP 1,078 Central, 2 Millharbour, Isle of Subject Property Beds,3 Beds Dogs, E14 A Galliard Holdings and Frogmore development comprising 297 units launched in mid-2015 Source: Company

June 14, 2017 34

Eco World International

West Village, Parramatta

West Village, Parramatta development site occupies a corner position with frontages to Church Street, Parkes Street and Anderson Street and is an approximately five-minute walk to Parramatta’s CBD. Parramatta is approximately 24 kilometres west of Sydney’s CBD.

Parramatta is a sizeable commercial centre containing 690,000 sq m of office space, with comprehensive retail amenities, including the nearby Westfield Parramatta Regional Shopping Mall. The amenities in West Village, Parramatta are expected to include a residents’ sky terrace at the highest floor with views of Sydney’s CBD and the Blue Mountains. Additionally, it is expected to have rooftop charcoal grille dining areas, a city view lounge deck area and an open lawn for residents.

West Village, Parramatta is well-connected via transportation links and located approximately 1.5 kilometres from the Parramatta Ferry Wharf, 500 metres from the Parramatta train station, 300 metres from a bus terminal and 300 metres from Westfield shopping centre. EWI has a 100% stake in this project.

Artists’ impression of West Village, Parramatta

Source: Company

West Village, Parramatta

Location Located to the southern fringe of the Parramatta Central Business District (“CBD”) Description 398 private residential units Commercial and retail space (approx. 11,937.2 sq ft) Estimated GDV* AUD 314.8m First Launch June 2015 Estimated Completion 1H 2020 Total Land Area (approx.) 1.18 acres Land Title Freehold Market Value of Land* AUD 41.3m Total Units Launched 398 Total Units Pre-Sold^ 329 ASP per sq ft^ AUD 1,003 % of pre-sold units^ 82.7% Sales Value^ AUD 248.8m ^ as at 31 December 2016 * Valuation report dated 15 December 2016 by m3 property Source: Company June 14, 2017 35

Eco World International

West Village, Parramatta: Nearby Projects

Description of development Location Unit type Price per sq m

Eco World International 5 minute walk to 1 Bed, 1 Bed+1 Park, AUD 10,843 West Village, 76-100 Church Street, Parramatta’s CBD 1 Bed+1 Study, 1 Parramatta NSW Bed+1 Study+1 Park, 2 Bed+ Park, 2 Bed+2 Park, 2 Bed+ Study+ Park, 3 Bed+ 2 Park, 3 Bed+ Study+ 2 Park

11 Hassall Street Parramatta NSW 800m from the Subject AUD 11,071- A construction of 41 storey mixed use building Property 12,600 comprising 216 residential apartments with ground, mezzanine and Level 1 podium non- residential together with basement car parking over 5 levels

“The Macarthur” 38-40 Macarthur Street 1.6km from the Subject AUD 8,682- Parramatta NSW Property 9,719 A construction of a four storey residential flat building containing 21 dwellings over basement car parking and strata subdivision

“Matrix” 21 Hassall Street Parramatta NSW 700m from the Subject AUD 8,875- A construction of nine storey mixed use Property 11,825 development containing 32 residential apartments. Basement car parking over a single level for 21 vehicles

Stage 3 “Promenade No. 2” 2 Morton Street 1.8km from the Subject AUD 10,000 and 1 Broughton Street Parramatta NSW Property A construction of a mixed use development containing 505 residential apartments together with commercial/ retail accommodation. Basement car parking for 649 vehicles.

“The River Vistas” 1A Morton Street 1.8km from the Subject AUD 7,166- Parramatta NSW Property 10,089 Forms a circa October 2016 completed residential development

“B1 Tower” 118 Church Street Parramatta 100m from the Subject AUD 8,902- NSW Property 9,938 Forms a circa May 2013 completed mixed use development

“Focus by Merhis” 6-10 Charles Street 750m from the Subject AUD 7,571- Parramatta NSW Property 10,293 Forms a circa July 2013 completed mixed use development comprising 110 residential apartments

“Escen” 140 Church Street Parramatta NSW 180m from the Subject AUD 8,101- Forms a circa April 2007 completed mixed use Property 10,664 development Source: Company

June 14, 2017 36

Eco World International

Yarra One, Melbourne

Yarra One (YO) is situated about 5.3 kilometres southeast of the Melbourne central business district. It is strategically located within close proximity to Chapel Street and Toorak Road. Chapel Street is famed as a vibrant and cosmopolitan shopping and entertainment precinct with over 1,000 shops offering a wide range of international and home-grown Australian branded fashion and retail, trendy eateries, fresh food and specialty stores as well as a host of other commercial facilities.

There is an existing building located on the land which is a converted warehouse commercial office building. The building was constructed in 1950s and has been periodically renovated and refurbished with an office conversion in 1990s. The building comprises a basement level with 2 storeys above ground. Total NLA is estimated at 2,277 sq.m.. Currently, there is one tenant. The aggregate rental for the lease is AUD296,380 per annum plus GST.

June 14, 2017 37

Eco World International

Appendix 1: EWI Group Structure

Eco World International’s structure

EWI

100% 75% 100% EW EW Fortune Investment Management Quest

100% 100% EW ACE EW International Marketing 75% EW-Ballymore Holding

100% 100% 100% 100% 100% 80% ACE EW-Ballymore EW-Ballymore EW-Ballymore EW Sydney Salcon Capital London City Embassy Gardens Arrowhead Development Development

London Embassy West Wardian City Island Gardens Village, Yarra One London Phase 2 Phase 2 Parramatta Project project project project Project

Legend:

United Kingdom property development project Promoting and marketing services

Australia property development project Advisory and project monitoring services

Project companies Joint ventures of our Company

Source: Company

June 14, 2017 38

Eco World International

Appendix 2: Board of Directors and Key Management Board of Directors

Name Designation Profile Tan Sri Azlan bin Mohd Senior Tan Sri Azlan bin Mohd Zainol (aged 67) has been a Fellow of the Institute of Chartered Accountants in Zainol Independent England and Wales since 1974, a Member of the Malaysian Institute of Accountants since 1975, a Non- Member of the Malaysian Institute of Certified Public Accountants since 1975 and a Fellow and Council Executive Member of Asian Institute of Chartered Bankers since 2015. He is also the Chairman of Financial Chairman Reporting Foundation since 2015. Tan Sri Azlan bin Mohd Zainol began his career with Razak & Co, an audit and tax consulting firm in 1975 before leaving the firm in 1977. Thereafter, he joined Maybank Finance Berhad from 1977 to 1979 as the Operation Manager and subsequently Kwong Yik Finance Berhad as the General Manager.

He left Kwong Yik Finance Berhad in 1980 to set up Tan Azlan & Company, an audit and tax consulting firm, which was associated with Binder Hamlyn. He then took up the role of Managing Director of Arab-Malaysian Finance Berhad in 1982 and was subsequently appointed as the Managing Director of Arab-Malaysian Bank Berhad in 1994. As the Managing Director, he was responsible for the operational and strategic direction of both the finance company as well as the bank. In 2001, he was appointed as the CEO of EPF. He retired from the EPF in April 2013.

Tan Sri Azlan bin Mohd Zainol was appointed as the Non-Independent Non-Executive Chairman of RHB Bank Berhad in 2005. He was also appointed to the boards of RHB Capital Berhad (in members’ voluntary liquidation), Rashid Hussain Berhad (in members’ voluntary liquidation) and RHB Investment Bank Berhad respectively in 2005. He resigned from the board of RHB Investment Bank Berhad on 9 July 2014 and was reappointed as Non-Independent Non-Executive Chairman on 27 June 2016. He has also served as a director on the boards for Jardine Cycle & Carriage Limited since 2004, for Malaysian Resources Corporation Berhad since 2005, for RHB Hong Kong Limited since 2013, and for Kuala Lumpur Kepong Berhad since 2013. He has also been serving as a trustee of Yayasan Astro Kasih since 2014 and OSK Foundation since 2015. Additionally, he has been on the Advisory Committee of the Battersea Power Station project since 2013 until he resigned on 31 March 2016.

Tan Sri Dato’ Sri Liew Executive Tan Sri Liew (aged 59) graduated with a Bachelor of Economics degree (Business Administration) from Kee Sin Vice University Malaya, Malaysia in 1981. He has more than 28 years of experience in the field of property Chairman development and has worked for the S P Setia group for more than 18 years. Tan Sri Liew began his career as a banker in Asiavest Merchant Bankers (M) Berhad in 1981. After five years in the banking industry, he joined a small property development company in 1986 where his last held position General Manager of Finance. He then set up his own company, Syarikat Kemajuan Jerai Sdn Bhd (“SKJ”) in 1990, which was his maiden entrepreneurial venture into property development.

In 1996, Tan Sri Liew injected SKJ and its group of companies into a then Second Board-listed construction entity in Malaysia, namely S P Setia (then known as Syarikat Pembinaan Setia Berhad) via a reverse take-over exercise. He was appointed as an Executive Director of S P Setia and was subsequently appointed as the Group Managing Director/CEO in 1996. In 2009, he was re-designated as the President and CEO of S P Setia, a position he held until his resignation in 2014. Under his stewardship, S P Setia became one of the largest property developers in Malaysia. Tan Sri Liew was the driving force behind the S P Setia group’s involvement in its most notable venture beyond Malaysian shores, which is the Battersea Power Station project in Central London in 2012. Under Tan Sri Liew’s leadership, S P Setia won numerous awards within the property development industry. During his tenure, S P Setia was ranked No.1 in The Edge Malaysia Top Property Developers Awards eight times, the only developer to have achieved this feat since the inception of the awards. S P Setia is also the only Malaysian developer to have received 6 FIABCI Prix d’Excellence Awards by the International Real Estate Federation (“FIABCI”). In his personal capacity, Tan Sri Liew also received many accolades that serve as evidence of his visionary leadership and professionalism.

Source: Company

June 14, 2017 39

Eco World International

Board of Directors (continued)

Name Designation Profile Dato’ Teow Leong Seng Executive Dato’ Teow Leong Seng (aged 59) obtained a Diploma in Commerce from University College Tunku Director/ Abdul Rahman in 1981 and subsequently, a Masters of Business Administration (MBA) from University of President Strathclyde Graduate School of Business, Glasgow in 2001. He is a Fellow of the Chartered Institute of and CEO Management Accountants (UK) since 1996 and a Chartered Accountant of the Malaysian Institute of Accountants since 1986. He has more than 30 years of experience in the property development industry, corporate finance, accounting, financial management and real-estate finance. Dato’ Teow began his career in 1981 in the accounts department for several companies within the Hong Leong group of companies. He later joined Metroplex Bhd in 1985 and subsequently PGK Sdn Bhd in 1988 where he was the finance manager until 1990. He joined Citibank N.A. (“Citibank”) as an Assistant Vice President in 1990 and was subsequently promoted to become a Director/Vice President to head its Real Estate Finance business in Malaysia. After Citibank, he was appointed as the Group Financial Controller of Wembley Industries Holdings Berhad in 1993. In 1996, Dato’ Teow started his career with the S P Setia group as the Executive Director and Chief Operating Officer of Suharta Development Sdn Bhd, a subsidiary of S P Setia and served the group in this position for four years until 2000. He then served the next four years as the Divisional General Manager of Investment and Business Development until 2004. Dato’ Teow was later appointed as the CEO of Setia Putrajaya Sdn Bhd in 2004, a position he held until 2007. Thereafter, he served as the Executive Director and CFO of the S P Setia group from 2007. In 2012, S P Setia scored its most significant international success when it won the bid for Battersea Power Station project in the UK together with its consortium partners, Sime Darby and EPF. Dato’ Teow led the team which conducted the extensive due diligence exercise that gave the consortium the confidence to submit an unconditional bid for the site. Following that, he was appointed by the consortium members to serve as the Chairman of the UK-based Battersea Power Station Development Company Limited (“BPSDC”) to oversee the development management of the project.

Dato’ Seri Ahmad Independent Dato’ Seri Ahmad Johan bin Mohammad Raslan (aged 58) holds a Bachelor of Economics (Honours) in Johan bin Mohammad Non- Economics and Accountancy from the University of Hull, UK in 1981. He qualified as a member of the Raslan Executive Institute of Chartered Accountants in England and Wales in 1984. He became a Fellow of that Institute Director in 2009. He has been a member of the Malaysian Institute of Accountants since 2001 and was its Council Member from 2007 to 2012. He has been a member of the Malaysian Institute of Certified Public Accountants since 2002 and was its President from 2011 to 2012. During his career, Dato’ Seri Ahmad Johan bin Mohammad Raslan was involved mainly in the provision of audit and advisory services to his clients. He began his career with Robson Rhodes, a firm of chartered accountants in London, UK in 1981 before leaving that firm in 1990. He joined Price Waterhouse in London, UK in 1990 as a Manager and thereafter returned to Malaysia and joined Price Waterhouse in Kuala Lumpur in 1992 as an Executive Director. He was admitted as a Partner of the firm in 1993, and was appointed as Financial Services Leader. He was elected as the Executive Chairman for the PwC Malaysia in 2004. In 2008, he became the Joint Executive Chairman for the PwC Southeast Asia Peninsular Region. He was also a Council Member of PwC’s Global Diversity & Inclusion Council from 2011 to 2012. He then served two four-year terms as Executive Chairman until his retirement in PwC in 2012. Outside PwC, he was appointed by the Minister of Finance to serve as Chairman of the Financial Reporting Foundation from 2003 to 2009. He was appointed to serve as a Board member of KWAP from 2010 to 2012. He also served as a Board member and Audit Committee Chairman of Putrajaya Corporation, an appointment by the Federal Territories Minister, from 2005 to 2012. Dato’ Seri Ahmad Johan has worked closely with the main regulators in relation to the development of the corporate sector and the financial markets in Malaysia. Under the Securities Commission, he was involved in the committee which established the Audit Oversight Board, a sub-committee of the Corporate Law Reform Committee and the Corporate Governance Consultative Committee. Under Bank Negara Malaysia, he served as a Member of the Financial Stability Executive Committee from 2009 to 2012, and as a Member of the International Advisory Panel of the Labuan Financial Services Authority from 2004 to 2012. He is currently a member of the Faculty of the Financial Institutions Directors Education Programme. He is also currently an Independent Non-Executive Director of Prima Ekuiti (UK) Limited, a subsidiary of KWAP, a Non-Independent Executive Director of AMMB Holdings Berhad, and a Non-Executive Director of QPR Holdings Ltd.

Source: Company

June 14, 2017 40

Eco World International

Board of Directors (continued)

Name Designation Profile Dato’ Siow Kim Lun @ Independent Dato’ Siow Kim Lun (aged 67) graduated with a Bachelor of Economics (Honours) from Universiti Siow Kim Lin Non- Kebangsaan Malaysia in 1978, followed by a Master Degree in Business Administration from the Catholic Executive University of Leuven, Belgium in 1981. He also attended the Advanced Management Program in Harvard Director Business School, USA in 1997.

He started his career with Malaysian International Merchant Bankers Berhad (now known as HLIB) (“MIMB”) in 1981 as an Executive of its Corporate Finance Division. He was involved in advising on various corporate transactions. He left MIMB in 1984 as a Manager of its Corporate Finance Division to join its associated company, Malaysian International Finance Berhad as the Manager of its Petaling Jaya Branch where he served until 1985. He joined Permata Chartered Merchant Bank Berhad (now known as Affin Hwang Investment Bank Berhad) (“Affin Investment”) in 1985 as a Manager of its Corporate Finance Division. He was promoted to the Divisional Head of the Corporate Finance Division in 1990.

In 1993, he left Affin Investment to join the Securities Commission (“SC”), where he served for over 13 years until his retirement in 2006. During his tenure with the SC, he held several positions including Director of the Issues & Investment Division, Director of the Market Supervision Division as well as Executive Director, Office of the Chairman.

He also served as a member of the Listing Committee of Bursa Securities from 2007 to 2009. He was a board member of Xingquan International Sports Holdings Limited from 2009 to 2011, a Non-Executive Director of UMW Oil & Gas Corporation Berhad from 2011 to 2013 and a Non-Executive Director of WZ Satu Berhad from 2007 to 2015. Currently, he is an Independent Non-Executive Chairman of Eita Resources Berhad, a Director of Citibank Berhad, a Director of KWAP, a Senior Independent Non- Executive Director of UMW Holdings Berhad, an Independent Non-Executive Director of Sunway Construction Group Berhad, an Independent Non-Executive Director of Hong Leong Assurance Berhad and a Director of MainStreet Advisers Sdn Bhd as well as a member of the Land Public Transport Commission.

Cheah Tek Kuang Independent Cheah Tek Kuang (aged 70) graduated with a Bachelor of Economics (Honours) from University of Non- Malaya in June 1970. He became a Fellow of the Asian Institute of Chartered Bankers in 2015. Executive Director Mr Cheah began his career with the Malaysian Industrial Development Authority (now known as Malaysian Investment Development Authority) in 1970 as a Deputy Director in the Planning and Research unit. Subsequently, he joined the Corporate Finance Department of AmInvestment Bank

Berhad (“AmInvestment”) in 1978. He was subsequently promoted to Senior General Manager in January 1988. He was appointed as CEO and Group Managing Director of AmInvestment in 1994 and 2002, respectively.

In 2005, he was appointed as Group Managing Director and CEO of AMMB Holdings Berhad. Even though he retired in 2012, he remained as Deputy Chairman and Non-Executive Director of AmBank (M) Berhad (“AmBank”) and AmInvestment, and Non-Executive Director of AmIslamic Bank Berhad until October 2015. He has served as a Council Member of the Association of Banks in Malaysia and Alternate Chairman of the Malaysian Investment Banking Association.

Mr Cheah is the Chairman and Independent Non-Executive Director of Berjaya Sports Toto Berhad and Independent and Non-Executive Director of IOI Corporation Berhad and UMW Oil & Gas Corporation Berhad, respectively. He served on the board of Danajamin Nasional Berhad and Cagamas Holdings Berhad from May 2013 to May 2016 and August 2011 to May 2016, respectively. He was an Independent Non-Executive Director of Bursa Malaysia Berhad from 2004 to 2013. He now sits on the Appeals Committee of Bursa Securities.

He sat on the board of EPF from June 1996 to May 2007 and its Investment Panel from June 2007 to May 2009. He served on the Investment Panel of KWAP from 2007 to February 2016.

He is currently on the board of Yayasan Bursa Malaysia, Malaysian Institute of Art and MIA Enterprise Sdn Bhd. Other companies for which he is Non-Executive Director include ARA Managers (Harmony III) Sdn Bhd and Sports Toto Malaysia Management Pte Ltd.

Source: Company

June 14, 2017 41

Eco World International

Key Management

Name Designation Profile Tan Sri Dato’ Sri Liew Executive (Please refer to details under ‘Board of Directors’ section) Kee Sin Vice Chairman

Dato’ Teow Leong Seng Executive Please refer to details under ‘Board of Directors’ section) Director/ President and CEO

Melissa Tan Swee Peng Chief Melissa Tan (aged 44) graduated from the University of Luton, UK in 1997 with a Degree in Accounting. Financial She has more than 18 years of experience in corporate financial management with nine years in the Officer real estate sector, six years in investment banking and three years in internal audit.

Melissa Tan started her career in 1997 with the Internal Audit department of Sunway Holdings Berhad (now known as Sunway Berhad) (“Sunway”). In 2001, she joined the Corporate Finance department of Aseambankers Malaysia Berhad (now known as Maybank IB).

Melissa Tan subsequently joined S P Setia in 2007 as a Senior Manager within the Corporate Finance department. She was the primary person assisting the Head of Corporate Finance and thereafter the CFO of S P Setia in the implementation of S P Setia’s financial strategies which included elements of corporate planning, capital market transactions, risk management and regulatory compliance. She played a direct role in securing regulatory approvals and advising on corporate finance related matters, including when S P Setia ventured into Australia and the UK in 2010 and 2012, respectively. In 2013, she was promoted to the Head of Corporate Finance.

In April 2014, she joined EW Berhad as the Head of Corporate Finance primarily responsible for the EW Berhad Group’s corporate financial planning. Within a span of about two years, she spearheaded the implementation of six major corporate transactions involving acquisitions and joint ventures arrangements, which enabled the EW Berhad Group to increase its landbank from 1,017 acres in 2013 to 7,443 acres by 31 October 2015, and facilitated a MYR2.8b equity fund raising for its growth and expansion plans.

Tan Cheng Yong Chief of Tan Cheng Yong (aged 61) graduated with a Bachelor of Arts in Architecture and Diploma in Design and Architecture from Leeds Polytechnic (now known as Leeds Metropolitan University), UK in 1980 and Planning 1984 respectively. He has more than 30 years of experience in the property industry with more than eight years and more than 22 years in architecture and property development, respectively.

Mr Tan began his professional working life in 1984, where he spent eight years as architect in the UK. He worked with the Greater London Council for two years, Michael Haskoll Associated for a year and Chapman Taylor Partners for five years, specializing in general architecture.

In 1992, he returned to Malaysia to join the Lion Group as General Manager for its Commercial and Integrated Developments Division. Thereafter, he joined S P Setia as a Project Director in 2011 and was later promoted to the position of Senior Project Director in 2012. In addition, he was appointed by BPSDC to be one of the three members of the tender committee in 2012. He was also the Chief Design Review Officer of Battersea Power Station Development Company.

Currently, he oversees four international projects as the Chief of Design and Planning in EWI for London City Island Phase 2, Embassy Gardens Phase 2, Wardian London and West Village, Parramatta projects.

Source: Company

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Key Management (continued)

Name Designation Profile Norhayati binti Subali Chief of Norhayati Binti Subali (aged 53) graduated with a Bachelor of Science (Hons) Degree in Urban Estate Sales and Management from Liverpool Polytechnic, UK in 1987. She has more than 20 years of experience in sales Marketing and marketing of property development projects, both locally and internationally.

She joined Juru Bena Tenaga Sdn Bhd in 1987 as a Marketing Executive and left in 1990 to join SKJ as an Assistant Manager, Sales and Marketing. She was promoted to the position of Assistant General Manager, Property Central, a position she held until 2002. She was later promoted to the position of General Manager, Property Central and held that position for seven years.

Norhayati was promoted to Divisional General Manager, Luxury Residences and Group Marketing in 2009. She was promoted to the position of Divisional General Manager, Group Marketing and International Properties in 2012. She was appointed as Managing Director of Battersea Power Station Sdn Bhd in 2012.

As EWI’s Chief of Sales and Marketing, she is responsible for the development of the marketing strategies and execution of the sales programmes for our four international projects namely the London City Island Phase 2, Embassy Gardens Phase 2, Wardian London and West Village, Parramatta projects.

Cheong Heng Leong CEO, Cheong Heng Leong (aged 37) graduated from the University of Oxford with a Bachelor of Arts in International Economics and Management in 2003. He also holds a Masters in Real Estate Economics and Finance, Business which he obtained from the London School of Economics and Political Science in 2005. He has been in (UK) the property industry for nearly ten years, with more than five years of experience within the UK property market.

In 2006, he joined the Investor Relations department of S P Setia. He was ranked 3rd and 2nd in the Malaysian Investor Relations Association Awards for Best Investor Relations Professional - Mid Cap in 2010 and 2011 respectively.

Following the successful acquisition of Battersea Power Station, he was triple-promoted by S P Setia in 2012 to General Manager, Property UK, making him the fastest-promoted and youngest-general manager in the company at that point of time. In recognition of the project knowledge that he had amassed, he was subsequently nominated by S P Setia, Sime Darby and EPF and seconded in 2012 to serve as the Chief Strategic Relations Officer of the UK-based Battersea Power Station Development Company, reporting directly to the Chairman.

He resigned from S P Setia in September 2015 to join EW Management as CEO, International Business (UK). Based in London, his main responsibilities include identifying new real estate opportunities, and overseeing the implementation of the joint-venture development with Ballymore on behalf of the joint venture’s majority shareholders.

Yap Foo Leong CEO, Yap Foo Leong (aged 59) holds a professional qualification from the Chartered Institute of Management International Accountants in UK and also a Diploma in Business (Real Estate Management) from Macleay College and Business is registered Licensed Real Estate Agent (LREA) in Australia. He first started work in 1981 with the (Australia) Hong Leong group of companies in Malaysia and held various positions in different Hong Leong companies from 1981 to 1987. His last posting was in Hume Fibreboard Sdn Bhd as the Finance Manager until he left to join Gamuda Berhad in 1993. In 2000, he was transferred to Syarikat Pengeluar Air Sungai Selangor (SPLASH) as the Senior Manager, Finance.

In early 2001, he migrated to Australia where he joined Dealruby Pty Ltd which is part of the Richbout group as a Director overseeing the entire spectrum of the group’s business. He left Dealruby Pty Ltd in July 2014 and joined EW Sydney Development as the CEO, International Business (Australia). He was instrumental in identifying the West Village, Parramatta project and conducted due diligence on the site. His main responsibility is to identify new projects and expand the Eco World International brand as well as to build the ECOWORLD team in Australia. He also oversees the overall operations of the West Village, Parramatta project.

Source: Company

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Appendix 3: Key Achievements, Milestones and Awards

Month/Year Key achievements, milestones and awards

May 2014 . EW Sydney Development entered into a sale and purchase agreement with Menara Paramatta Pty Limited to acquire the West Village, Parramatta site and completed such acquisition.

January 2015 . EW ACE entered into a sale and purchase agreement with AIHL, a company within Ballymore, to acquire a 75.0% interest in EW-Ballymore Holding.

March 2015 . Opening of Eco World International Centre located at The Gardens North Tower in Mid Valley, Kuala Lumpur to showcase our development projects.

April/May 2015 . EW ACE completed the acuisition of 75.0% interest in EW-Ballymore Holding and signed a shareholders’ agreement with AIHL and EW-Ballymore Holding to jointly develop the London City Island Phase 2, Embassy Gardens Phase 2 and Wardian London projects.

May 2015 . The London City Island Phase 2 project was launched in London, Kuala Lumpur and Singapore. . Entered into an agreement to lease with the English National Ballet.

June 2015 . The London City Island Phase 2 project was launched in Hong Kong and China. . The West Village, Parramatta project was launched in Kuala Lumpur, Singapore and Indonesia and subsequently in Hong Kong, China and Australia. July 2015 . Completion of footbridge at London City Island (known as the Red Bridge).

September 2015 . The Embassy Gardens Phase 2 project was launched in London, Kuala Lumpur, Hong Kong and Singapore. . The Wardian London project was launched in London and Kuala Lumpur.

October 2015 . The Wardian London project was launched in Singapore, Hong Kong and the United Arab Emirates. . Won the Inward Investment Deal of the Year in the 2015 MIPIM-UK Awards. The MIPIM-UK Awards are run as part of MIPIM-UK, the United Kingdom’s largest exhibition and conference for property professionals, in conjunction with property publication “Estates Gazette”. June 2016 . EW-Ballymore Holding won the Best Marketing Campaign: Residential New Build at the Property Marketing Awards 2016. The Property Marketing Awards is organized by the Worshipful Company of Chartered Surveyors, one of the many long-established livery companies in the City of London in partnership with property publication “Estates Gazette”. October 2016 . Entered into the Collaboration Agreement and ECW Share Subscription Agreement, Shareholders agreement with ECW, Tan Sri Liew and GuocoLand. November 2016 . EW Sydney Development received a new development consent for the West Village, Parramatta project. . EW-Ballymore Arrowhead, EW-Ballymore London City and EW-Ballymore Embassy Gardens each entered into agreements with Nationwide Trustee for the grant of leases of all private residential units within the respective projects such that Nationwide Trustee would be entitled to receive the ground rents payable under the private residential unit leases. December 2016 . EW-Ballymore London City entered into an agreement for leases with The London International Film School Limited to lease office space and a community centre in London City Island Phase 2. 3 April 2017 . EWI is listed on the Main Market of Bursa Malaysia.

Source: Company

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Appendix 4: Location of EWI’s projects

EWI Riverside Developments in London, United Kingdom

Source: Company

Location of EWI’s West Village in Parramatta, Sydney

Source: Company

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EWI’s first land acquisition in Melbourne post-IPO listing. The project is called Yarra One

Source: Maybank Kim Eng

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Research Offices

REGIONAL HONG KONG / CHINA INDONESIA VIETNAM

Sadiq CURRIMBHOY Howard WONG Head of Research Isnaputra ISKANDAR Head of Research LE Hong Lien, ACCA Regional Head, Research & Economics (852) 2268 0648 (62) 21 8066 8680 Head of Institutional Research (65) 6231 5836 [email protected] [email protected] [email protected] (84) 8 44 555 888 x 8181 • Strategy • Strategy • Metals & Mining • Cement [email protected] WONG Chew Hann, CA • Oil & Gas - Regional • Strategy • Consumer • Diversified Regional Head of Institutional Research Rahmi MARINA (603) 2297 8686 [email protected] Benjamin HO (62) 21 8066 8689 THAI Quang Trung, CFA, (852) 2268 0632 [email protected] [email protected] Deputy Head, Institutional Research ONG Seng Yeow • Consumer & Auto • Banking & Finance (84) 8 44 555 888 x 8180 Regional Head of Retail Research [email protected] (65) 6231 5839 Christopher WONG Aurellia SETIABUDI • Real Estate • Construction • Materials [email protected] (852)2268 0652 [email protected] (62) 21 8066 8691 • HK & China Properties [email protected] LE Nguyen Nhat Chuyen TAN Sin Mui • Property (84) 8 44 555 888 x 8082 Jacqueline KO, CFA Director of Research [email protected] (852) 2268 0633 [email protected] Pandu ANUGRAH (65) 6231 5849 [email protected] • Oil & Gas • Consumer Staples & Durables (62) 21 8066 8688 [email protected] ECONOMICS NGUYEN Thach Lam Ka Leong LO, CFA • Infra • Construction • Transport• Telcos (852) 2268 0630 [email protected] (84) 8 44 555 888 x 8085 Suhaimi ILIAS [email protected] Chief Economist • Consumer Discretionary & Auto Janni ASMAN (62) 21 8066 8687 • Utilities Malaysia | Philippines Mitchell KIM (603) 2297 8682 [email protected] [email protected] (852) 2268 0634 [email protected] • Cigarette • Healthcare • Retail NGUYEN Thi Ngan Tuyen, CHUA Hak Bin • Internet & Telcos Head of Retail Research Regional Thematic Macroeconomist Adhi TASMIN (84) 8 44 555 888 x 8081 (65) 6231 5830 [email protected] Ning MA, CFA (62) 21 8066 8694 [email protected] (852) 2268 0672 [email protected] • Food & Beverage • Oil&Gas • Banking LEE Ju Ye [email protected] • Insurance • Plantations Singapore TRUONG Quang Binh, (65) 6231 5844 [email protected] Ricky NG, CFA PHILIPPINES Deputy Head, Retail Research Tim LEELAHAPHAN (852) 2268 0689 [email protected] (84) 4 44 555 888 x 8087 Thailand • Regional Renewables Lovell SARREAL [email protected] (66) 2658 6300 ext 1420 • HK & China Properties (63) 2 849 8841 • Rubber Plantation • Tyres and Tubes • Oil&Gas [email protected] [email protected] Sonija LI, CFA, FRM • Consumer • Media • Cement TRINH Thi Ngoc Diep Saktiandi SUPAAT (852) 2268 0641 [email protected] (84) 4 44 555 888 x 8208 Head, FX Research • Gaming Rommel RODRIGO (65) 6320 1379 [email protected] [email protected] (63) 2 849 8839 • Technology • Utilities • Construction Stefan CHANG, CFA [email protected] (852) 2268 0675 [email protected] STRATEGY • Conglomerates • Property • Gaming NGUYEN Thi Sony Tra Mi • Technology – Regional • Ports/ Logistics Sadiq CURRIMBHOY (84) 8 44 555 888 x 8084 [email protected] Global Strategist Tony Ren, MBA, CFA Katherine TAN (852) 2268 0640 [email protected] • Port Operation • Pharmaceutical (65) 6231 5836 [email protected] (63) 2 849 8843 • Food & Beverage • Healthcare & Pharmaceutical [email protected] Willie CHAN • Banks • Construction NGUYEN Thanh Lam Hong Kong / Regional INDIA (84) 4 44 555 888 x 8086 (852) 2268 0631 [email protected] Jigar SHAH Head of Research THAILAND [email protected] (91) 22 6623 2632 [email protected] • Technical Analysis MALAYSIA Maria LAPIZ Head of Institutional Research • Strategy • Oil & Gas • Automobile • Cement Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 WONG Chew Hann, CA Head of Research [email protected] (603) 2297 8686 [email protected] Vishal MODI • Strategy • Consumer • Materials • Ind. Estates • Strategy (91) 22 6623 2607 [email protected] • Banking & Financials Sittichai DUANGRATTANACHAYA Desmond CH’NG, ACA (66) 2658 6300 ext 1393 (603) 2297 8680 Neerav DALAL [email protected] [email protected] • Services Sector • Transport • Banking & Finance (91) 22 6623 2606 [email protected] • Software Technology • Telcos LIAW Thong Jung Yupapan POLPORNPRASERT (66) 2658 6300 ext 1395 (603) 2297 8688 [email protected] Vishal PERIWAL • Oil & Gas Services- Regional [email protected] (91) 22 6623 2605 [email protected] • Oil & Gas ONG Chee Ting, CA • Infrastructure (603) 2297 8678 [email protected] Tanawat RUENBANTERNG • Plantations - Regional SINGAPORE (66) 2658 6300 ext 1394 Mohshin AZIZ [email protected] Neel SINHA Head of Research (603) 2297 8692 [email protected] • Banks & Diversified Financials (65) 6231 5838 [email protected] • Aviation - Regional • Petrochem • Strategy Vorapoj HONGPINYO YIN Shao Yang, CPA • SMID Caps – Regional (66) 2658 6300 ext 1392 (603) 2297 8916 [email protected] Gregory YAP [email protected] • Gaming – Regional • Media (65) 6231 5848 [email protected] • Real Estate & Contractors TAN Chi Wei, CFA • SMID Caps (603) 2297 8690 [email protected] • Technology & Manufacturing • Telcos Sukit UDOMSIRIKUL Head of Retail Research • Power • Telcos (66) 2658 6300 ext 5090 CHUA Su Tye [email protected] WONG Wei Sum, CFA (65) 6231 5842 [email protected] (603) 2297 8679 [email protected] • REITs Surachai PRAMUALCHAROENKIT • Property (66) 2658 6300 ext 1470 LEE Yen Ling Derrick HENG, CFA [email protected] (603) 2297 8691 [email protected] (65) 6231 5843 [email protected] • Auto • Conmat • Contractor • Steel • Building Materials • Glove • Ports • Shipping • Transport • Property • REITs (Office) Suttatip PEERASUB Ivan YAP John CHEONG, CFA (66) 2658 6300 ext 1430 (603) 2297 8612 [email protected] (65) 6231 5845 [email protected] [email protected] • Automotive • Semiconductor • Technology • Small & Mid Caps • Healthcare • Media • Commerce Kevin WONG NG Li Hiang Sutthichai KUMWORACHAI (603) 2082 6824 [email protected] (65) 6231 5840 [email protected] • REITs • Consumer Discretionary (66) 2658 6300 ext 1400 • Banks [email protected] LIEW Wei Han • Energy • Petrochem (603) 2297 8676 [email protected] • Consumer Staples Termporn TANTIVIVAT (66) 2658 6300 ext 1520 Adrian WONG [email protected] (603) 2297 8675 [email protected] • Property • Constructions • Healthcare Jade TAM Jaroonpan WATTANAWONG (603) 2297 8687 [email protected] (66) 2658 6300 ext 1404 • Media • Building Materials [email protected] • Transportation • Small cap TEE Sze Chiah Head of Retail Research (603) 2082 6858 [email protected] Nik Ihsan Raja Abdullah, MSTA, CFTe (603) 2297 8694 [email protected]

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APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES

DISCLAIMERS This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns may be less than the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report. The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees (collectively, “Representatives”) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice. This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”, “intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events. MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report to the extent permitted by law. This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the actions of third parties in this respect. This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report. Malaysia Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis. Singapore This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law. Thailand Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of Maybank Kim Eng Securities (Thailand) Public Company Limited. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) accepts no liability whatsoever for the actions of third parties in this respect. Due to different characteristics, objectives and strategies of institutional and retail investors, the research reports of MBKET Institutional and Retail Research Department may differ in either recommendation or target price, or both. MBKET Retail Research is intended for retail investors (http://kelive.maybank- ke.co.th) while Maybank Kim Eng Institutional Research is intended only for institutional investors based outside Thailand only. The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. MBKET does not confirm nor certify the accuracy of such survey result. The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by Thaipat Institute, is made in order to comply with the policy and sustainable development plan for the listed companies of the Office of the Securities and Exchange Commission. Thaipat Institute made this assessment based on the information received from the listed company, as stipulated in the form for the assessment of Anti- corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2), or other relevant documents or reports of such listed company. The assessment result is therefore made from the perspective of Thaipat Institute that is a third party. It is not an assessment of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that date or when there is any change to the relevant information. Nevertheless, MBKET does not confirm, verify, or certify the accuracy and completeness of the assessment result. US This third-party research report is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne by Maybank KESUSA. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant legislation and regulations. All U.S. persons receiving and/or accessing this report and wishing to effect transactions in any security mentioned within must do so with: Maybank Kim Eng Securities USA Inc. 777 Third Avenue 21st Floor New York, New York 1- (212) 688-8886 and not with, the issuer of this report.

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UK This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regulated, by the Financial Conduct Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

DISCLOSURES

Legal Entities Disclosures Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938- H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This report is distributed in Singapore by Maybank KERPL (Co. Reg No 198700034E) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Maybank Kim Eng Securities (“PTMKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the Financial Services Authority (Indonesia). Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Maybank Kim Eng Securities Limited (License Number: 117/GP-UBCK) is licensed under the State Securities Commission of Vietnam. Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited and the Bombay Stock Exchange and is regulated by Securities and Exchange Board of India (“SEBI”) (Reg. No. INZ000010538). KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) and as Research Analyst (Reg No: INH000000057) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.

Disclosure of Interest Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies.

Singapore: As of 14 June 2017, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.

Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.

Hong Kong: As of 14 June 2017, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.

India: As of 14 June 2017, and at the end of the month immediately preceding the date of publication of the research report, KESI, authoring analyst or their associate / relative does not hold any financial interest or any actual or beneficial ownership in any shares or having any conflict of interest in the subject companies except as otherwise disclosed in the research report.

In the past twelve months KESI and authoring analyst or their associate did not receive any compensation or other benefits from the subject companies or third party in connection with the research report on any account what so ever except as otherwise disclosed in the research report.

MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the companies covered in this report.

OTHERS Analyst Certification of Independence The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.

Reminder Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

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Historical recommendations and target price: Eco World International (ECWI MK)

Definition of Ratings Maybank Kim Eng Research uses the following rating system BUY Return is expected to be above 10% in the next 12 months (excluding dividends) HOLD Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends) SELL Return is expected to be below -10% in the next 12 months (excluding dividends)

Applicability of Ratings The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies.

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 Philippines  Thailand  Vietnam  Saudi Arabia Maybank ATR Kim Eng Securities Inc. Maybank Kim Eng Securities Maybank Kim Eng Securities Limited In association with 17/F, Tower One & Exchange Plaza (Thailand) Public Company Limited 4A-15+16 Floor Vincom Center Dong Anfaal Capital Ayala Triangle, Ayala Avenue 999/9 The Offices at Central World, Khoi, 72 Le Thanh Ton St. District 1 Villa 47, Tujjar Jeddah Makati City, Philippines 1200 20th - 21st Floor, Ho Chi Minh City, Vietnam Prince Mohammed bin Abdulaziz Rama 1 Road Pathumwan, Street P.O. Box 126575 Tel: (63) 2 849 8888 Bangkok 10330, Thailand Tel : (84) 844 555 888 Jeddah 21352 Fax: (63) 2 848 5738 Fax : (84) 8 38 271 030 Tel: (66) 2 658 6817 (sales) Tel: (966) 2 6068686 Tel: (66) 2 658 6801 (research) Fax: (966) 26068787

 South Asia Sales Trading  North Asia Sales Trading Kevin Foy Andrew Lee Regional Head Sales Trading [email protected] [email protected] Tel: (852) 2268 0283 Tel: (65) 6636-3620 US Toll Free: 1 877 837 7635 US Toll Free: 1-866-406-7447

Malaysia Thailand Joann Lim Tanasak Krishnasreni [email protected] [email protected] Tel: (603) 2717 5166 Tel: (66)2 658 6820

Indonesia London Harianto Liong Scott Kinnear-Nock [email protected] [email protected] Tel: (62) 21 2557 1177 Tel: (44) 207-332-0221

New York India Andrew Dacey Manish Modi [email protected] [email protected] Tel: (212) 688 2956 Tel: (91)-22-6623-2601

Vietnam Philippines Patrick Mitchell Keith Roy [email protected] [email protected] Tel: (84)-8-44-555-888 x8080 Tel: (63) 2 848-5288 www.maybank-ke.com | www.maybank-keresearch.com

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