JAYA TIASA HOLDINGS BHD

( Company No: 3751-V )

QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016 - unaudited

CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

INDIVIDUAL QUARTER CUMULATIVE QUARTER

3 months ended 9 months ended
31/03/2016 31/03/2015 31/03/2016 31/03/2015
RM'000 RM'000 RM'000 RM'000

Revenue 229,413 243,142 777,374 793,350

Cost of sales (195,725) (196,470) (583,475) (628,420)

Gross profit 33,688 46,672 193,899 164,930

Other income 3,505 3,226 12,747 10,838

Selling and distribution costs (15,125) (16,608) (54,379) (66,208)

Administrative expenses (14,097) (16,841) (48,428) (47,946)

Finance costs (15,565) (7,896) (43,571) (24,604)

Profit/(loss) before taxation (7,594) 8,553 60,268 37,010

Income tax expense 549 (6,854) (14,953) (15,762)

Profit/(loss) net of tax (7,045) 1,699 45,315 21,248

Other comprehensive income:

Net gain on available-for-sale financial assets
- Gain on fair value changes 8,643 - 8,643 -
Other comprehensive income, net of tax 8,643 - 8,643 -

Total comprehensive income for the period 1,598 1,699 53,958 21,248

Profit/(loss) attributable to:

Owner of the parent (7,733) 635 43,131 19,186
Non-controlling interests 688 1,064 2,184 2,062
(7,045) 1,699 45,315 21,248
Total comprehensive income attributable to:
Owner of the parent 910 635 51,774 19,186
Non-controlling interests 688 1,064 2,184 2,062
1,598 1,699 53,958 21,248
Basic earnings per share attributable
to owners of the parent (Sen) (0.80) 0.07 4.46 1.98

The unaudited condensed consolidated income statements should be read in conjunction with the audited financial statements for the year ended
30 June 2015 and the accompanying explanatory notes attached to this quarterly report.

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JAYA TIASA HOLDINGS BHD ( 3751-V )

QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016 - unaudited

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

UNAUDITED AUDITED
AS AT AS AT
31/03/2016 30/06/2015
RM'000 RM'000
ASSETS
Non-current Assets
Property, plant and equipment 1,178,572 1,159,249
Biological assets 1,579,708 1,548,690
Timber rights - 2,577
Land use rights 40 49
Goodwill on consolidation 62,337 62,337
Other intangible assets 579 660
Investment securities 83,643 5,000
Deferred tax assets 19,958 14,965
2,924,837 2,793,527

Current Assets
Inventories 145,104 146,944
Trade and other receivables 72,396 118,470
Other current assets 4,365 3,831
Investment securities - 7
Income tax receivable 22,185 3,436
Cash and bank balances 53,264 21,097
297,314 293,785
TOTAL ASSETS 3,222,151 3,087,312

EQUITY AND LIABILITIES

Current Liabilities
Interest bearing loans and borrowings 513,483 569,001
Trade and other payables 183,094 231,446
Income tax payable 26,937 17,768
723,514 818,215

EQUITY AND LIABILITIES

Non-current Liabilities
Interest bearing loans and borrowings 560,047 382,603
Deferred tax liabilities 119,203 111,384
679,250 493,987
Total Liabilities 1,402,764 1,312,202
Net assets 1,819,387 1,775,110

Equity Attributable to owners of the parent

Share capital 973,718 973,718
Treasury shares (13,684) (13,683)
Reserves 851,128 809,034
1,811,162 1,769,069
Non-controlling interests 8,225 6,041
Total Equity 1,819,387 1,775,110
TOTAL EQUITY AND LIABILITIES 3,222,151 3,087,312

Net assets per share attributable to equity holders (RM) 1.87 1.83
Number of ordinary shares net of treasury shares 967,993 967,994

The unaudited condensed consolidated balance sheets should be read in conjunction with the audited financial statements
for the year ended 30 June 2015 and the accompanying explanatory notes attached.

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JAYA TIASA HOLDINGS BHD ( 3751-V )

QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016 - unaudited

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Attributable to Equity Holders of the Parent

Non-Distributable Distributable
Foreign currency Non-
Share Treasury translation Other Retained controlling Equity,
capital shares reserves reserves profits Total interest Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Opening balance at 01 July 2015 973,718 (13,683) (6,458) 3,684 811,808 1,769,069 6,041 1,775,110

Profit for the year - - - - 43,131 43,131 2,184 45,315

Other comprehensive income - - - 8,643 - 8,643 - 8,643
Total comprehensive income - - - 8,643 43,131 51,774 2,184 53,958

Transactions with owners

Dividends on ordinary shares - - - - (9,680) (9,680) - (9,680)
Purchase of treasury shares - (1) - - - (1) - (1)
Total Transactions with owners - (1) - - (9,680) (9,681) - (9,681)

At 31 March 2016 973,718 (13,684) (6,458) 12,327 845,259 1,811,162 8,225 1,819,387

Opening balance at 01 July 2014 973,718 (13,679) (6,477) 3,684 794,693 1,751,939 3,231 1,755,170

Total comprehensive income - - - - 19,186 19,186 2,062 21,248

Transactions with owners

Dividends on ordinary shares - - - - (14,520) (14,520) - (14,520)
Purchase of treasury shares - (4) - - - (4) - (4)
Total Transactions with owners - (4) - - (14,520) (14,524) - (14,524)

At 31 March 2015 973,718 (13,683) (6,477) 3,684 799,359 1,756,601 5,293 1,761,894

The unaudited condensed consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the year ended 30 June 2015 and the accompanying
explanatory notes attached to this quarterly report.

851,128.00

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JAYA TIASA HOLDINGS BHD ( 3751-V )

QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016 - unaudited

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Current Corresponding
9 months ended 9 months ended
31/03/2016 31/03/2015
RM'000 RM'000
Cash flows from operating activities
Profit before taxation 60,268 37,010
Adjustments for:
Amortisation of other intangible assets 493 10,537
Amortisation of land use rights 182 157
Depreciation 70,063 62,740
Dividend income from investment securities (2) (858)
Fair value loss on derivative assets - 1,193
Impairment of trade and other receivables 9,000 3,882
Interest expenses 41,490 22,538
Interest income (39) (9)
Net loss on disposal of property, plant and equipment 177 3,182
Net unrealised foreign exchange loss 717 960
Operating cash flows before working capital changes 182,349 141,332

Net change in current assets 36,337 66,812

Net change in current liabilities (46,311) (79,335)
Cash flows from operations 172,375 128,809

Interest received 39 9
Interest paid (41,516) (30,448)
Income taxes paid, net of refund (20,728) (9,170)
Net cash flows from operating activities 110,170 89,200

Purchase of property, plant and equipment (77,400) (131,914)

Plantation development expenditure incurred (29,154) (45,843)
Purchase of other intangible assets - (15)
Purchase of investment securities (70,000) (5,000)
Proceeds from disposal of investment securities 7 37,143
Dividend income of investment securities 2 858
Proceeds from disposal of property, plant and equipment 1,221 10,552
Net cash flows used in investing activities (175,324) (134,219)

Cash flows from financing activities

Dividend paid (9,680) (14,520)
Purchase of treasury shares (1) (4)
Net proceeds of revolving credit and bankers' acceptances 41,313 27,990
Repayments of hire purchase creditors (17,437) (10,065)
Repayments of term loans (15,301) (71,875)
Proceeds from term loans 118,702 133,874
Net cash flows from financing activities 117,596 65,400

Net change in cash and cash equivalent 52,442 20,381

Cash and cash equivalents at the beginning of the year (103,310) (64,944)

Cash and cash equivalents at the end of the year (50,868) (44,563)

Cash and bank balances 53,264 35,043

Bank overdrafts (104,132) (79,606)
(50,868) (44,563)

The unaudited condensed consolidated cash flow statement should be read in conjunction with the audited financial statements for the
year ended 30 June 2015 and the accompanying explanatory notes attached to this quarterly report.

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JAYA TIASA HOLDINGS BHD ( 3751-V )
QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016

Part A – Explanatory Notes Pursuant to FRS 134

1 Basis of Preparation

The quarterly report is unaudited and has been prepared in accordance with the requirements of
Financial Reporting Standard (“FRS”) 134: Interim Financial Reporting issued by Malaysian
Accounting Standards Board (“MASB”) and paragraph 9.22 of the Listing Requirements of Bursa
Malaysia Securities Berhad.

The quarterly report should be read in conjunction with the Group’s audited financial statements for
the financial year ended 30 June 2015. These explanatory notes attached to the quarterly report
provide an explanation of events and transactions that are significant to an understanding of the
changes in the financial position and performance of the Group since the financial year ended 30
June 2015.

The significant accounting policies adopted in the quarterly report are consistent with those adopted
in the Group’s audited financial statements for the financial year ended 30 June 2015. At the date of
authorization of these interim financial statements, the Group has not adopted the following
accounting standards that have been issued by the Malaysian Accounting Standards Board
(“MASB”). The Group intend to adopt these amendments/standards, if applicable, when they
become effective.

Effective for annual

Description periods beginning
on or after
Annual Improvements to FRSs 2012 - 2014 Cycle 1 January 2016

Amendments to FRS 116 and FRS 138: Clarification of Acceptable Methods 1 January 2016
of Depreciation and Amortisation

Amendments to FRS 10 and FRS 128: Sale or Contribution of Assets 1 January 2016
between an Investor and its Associate or Joint Venture

Amendments to FRS 10, FRS 12 and FRS 128: Investments Entities – 1 January 2016
Applying the Consolidation Exception

Amendments to FRS 11: Accounting for Acquisitions of Interests in Joint 1 January 2016
Operations

Amendments to FRS 101: Disclosure Initiatives 1 January 2016

Amendments to FRS 127: Equity Method in Separate Financial Statements 1 January 2016

FRS 14 Regulatory Deferral Accounts 1 January 2016

FRS 9 Financial Instruments 1 January 2018

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JAYA TIASA HOLDINGS BHD ( 3751-V )
QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016

Part A – Explanatory Notes Pursuant to FRS 134

2 Auditors’ Report on Preceding Annual Financial Statements

The auditors’ report on the financial statements for the year ended 30 June 2015 was not qualified.

3 Seasonal and Cyclical Factors

Save for the weather conditions which may affect our operations, our principal business operations
have not been significantly affected by any seasonal and cyclical factors.

4 Unusual Items

There were no unusual items affecting assets, liabilities, equity, net income, or cash flows during the
current quarter and financial period-to-date.

5 Changes in Estimates

There were no changes in estimates of amounts reported in prior quarters which have a material
impact on the current quarterly report.

6 Debt and Equity Securities

During the financial quarter, 1,000 shares of RM 1.00 each were purchased and retained as treasury
shares. The monthly breakdown of shares bought back is as follows:

Month No of shares Purchase price per share Average price Total

purchased Lowest Highest per share paid consideration paid
RM RM RM RM
Feb 2016 1,000 1.44 1.44 1.4849 1,484.87

On 31 March 2016, the number of shares retained as treasury shares amounted to 5,725,000.

Apart from the above there were no other issuances and repayments of debt and equity securities for
the period.

7 Dividends Paid

A first and final single-tier dividend of 1 sen per ordinary share in respect of the financial year ended
30 June 2015 amounting to RM9,679,938 was paid on 16th December 2015.

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JAYA TIASA HOLDINGS BHD ( 3751-V )
QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016

Part A – Explanatory Notes Pursuant to FRS 134

8 Segmental Information

The segment information in respect of the Group’s business segments for the period-to-date ended
31 March 2016 is as follows:

Period ended Period ended

31 March 2016 31 March 2015
Revenue Profit/(Loss) Revenue Profit/(Loss)
Before Before
Taxation Taxation
RM’000 RM’000 RM’000 RM’000

Logs 226,709 92,495 294,488 73,849

Wood processing 277,440 18,779 275,157 9,498
Oil palm 272,775 (34,562) 223,193 (10,749)
Others 450 722 512 (286)
Group admin and overhead - (17,166) - (35,302)
Consolidated total 777,374 60,268 793,350 37,010

9 Carrying Amount of Revalued Assets

The Group did not carry out any valuations on its property, plant and equipment during the current
quarter and financial period-to-date. The carrying value of property, plant and equipment is based on
the valuation incorporated in the annual financial statements for the year ended 30 June 2015.

10 Subsequent Events

No material events have arisen during the interval between the end of the current quarter and the
date of this announcement that have not been reflected in the current quarterly report.

11 Changes in Composition of the Group

There were no changes in the composition of the Group during the current quarter, which were
previously not announced.

12 Contingent Liabilities and Contingent Assets

There are no significant changes in contingent liabilities or assets as at the end of the current quarter.

13 Capital Commitments

The amount of commitments for the purchase of property, plant and equipment not provided for in
the quarterly report is as follows:
As at As at
31 March 2016 30 June 2015
RM’000 RM’000

Authorised and contracted for 36,755 57,608

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JAYA TIASA HOLDINGS BHD ( 3751-V )
QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016

Part B – Explanatory Notes Pursuant to Appendix 9B of the Listing Requirements of Bursa Malaysia
Securities Berhad

14 Review of Performance

(a) Comparison of Results with Previous Corresponding Quarter

For the quarter ended 31 March 2016, the Group reported a revenue of RM229.4 million
representing a decrease of 5.6% from RM243.1 million recorded in the previous
corresponding quarter. A loss before tax of RM7.6 million was registered in the current
quarter as compared to a profit before tax of RM8.6 million attained in the corresponding
period last year.

Pre-tax loss was resulted from:-

 9% increase in FFB unit production cost due to higher cost incurred in applying higher
dosage of fertiliser to increased area of more matured palm trees; and
 higher cost of financing as a result of additional bank borrowings to finance the
plantation operations.

(b) Comparison of Results with Previous Year-to-date

For the financial year-to-date, the Group’s revenue of RM777.4 million was 2% lower than
RM793.4 million reported in the previous corresponding period. However, pre-tax profit had
improved by 63% to RM60.3 million as compared with RM37.0 million attained in the same
period last year.

Lower revenue was resulted from the decrease in log and plywood sales volume due to lower
logs production volume.

Higher pre-tax profit was contributed by:-

 higher average selling prices of log and plywood of 15% each;
 39% and 27% increase in CPO and veneer sales volume respectively; and
 11% decrease in log production cost.

15 Comparison of Profit Before Tax with Immediate Preceding Quarter

The performance for the current quarter deteriorated with a loss of RM7.6 million as compared with
RM35.3 million profits reported in the preceding quarter.

The increased FFB cost of production was due to seasonal lower production volume of FFB which
was aggravated by weather conditions.

Lower plywood and veneer sales volume were due to the reduction in logs production volume.

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JAYA TIASA HOLDINGS BHD ( 3751-V )
QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016

Part B – Explanatory Notes Pursuant to Appendix 9B of the Listing Requirements of Bursa Malaysia
Securities Berhad

16 Commentary on Prospects

Demand for timber products is expected to slow down due to the uncertainties of current global
economic conditions. However, the average prices of the timber products are expected to remain
stable due to the limited log supply coupled with a strong USD which is favourable to our export
sales.

For the oil palm division, higher FFB production is expected as we are entering into high crop
season and increasing palm age maturing profile. The Group will continue emphasizing on
improvement in FFB yields and strengthening its plantation management practices.

17 Profit Forecast or Profit Guarantee

The disclosure requirements for explanatory notes on the variation of actual profit after tax and
non-controlling interest, and shortfall in profit guarantee are not applicable.

18 Profit for the Period

Included in the profit before tax are the following items:

Current quarter Cumulative quarter

31 March 31 March 31 March 31 March
2016 2015 2016 2015
RM’000 RM’000 RM’000 RM’000

Amortisation 89 3,565 675 10,694

Depreciation 23,874 20,984 70,063 62,740
Fair value loss on
derivative assets - 1,193 - 1,193

Interest expenses 14,372 7,349 41,490 22,538

Impairment of
financial assets 3,000 882 9,000 3,882
Net (gain)/loss on
disposal of property,
plant and equipment (15) 2,048 177 3,182
Net unrealised foreign
exchange (gain)/loss (1,596) 726 717 960
Interest income (27) (3) (39) (9)
Dividend income from
investment securities (2) (178) (2) (858)

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JAYA TIASA HOLDINGS BHD ( 3751-V )
QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016

Part B – Explanatory Notes Pursuant to Appendix 9B of the Listing Requirements of Bursa Malaysia
Securities Berhad

19 Taxation

Taxation comprise:-
Current quarter Cumulative quarter
31 March 31 March 31 March 31 March
2016 2015 2016 2015
RM’000 RM’000 RM’000 RM’000

Current taxation (6,471) (4,481) 12,128 8,876

Deferred taxation 5,922 11,335 2,825 6,886
(549) 6,854 14,953 15,762

The effective tax rate for the Group is higher than the statutory tax rate of 24%. This is mainly due
to certain expenses not allowable for tax deduction.

20 Quoted Securities

There was no purchase or disposal of quoted securities during the current quarter.

21 Unquoted Securities

There was no purchase or disposal of unquoted securities during the current quarter and financial
period-to-date.

22 Borrowings and Debt Securities

As at As at
31 March 30 June
2016 2015
RM’000 RM’000
Secured borrowings:
Short term 24,733 21,364
Long term 25,143 31,825
49,876 53,189
Unsecured borrowings:
Short term 488,750 547,637
Long term 534,904 350,778
1,023,654 898,415

1,073,530 951,604

Borrowings denominated in foreign currency:

USD’000 RM’000
Equivalent

United States Dollars 5,000 19,680

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JAYA TIASA HOLDINGS BHD ( 3751-V )
QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016

Part B – Explanatory Notes Pursuant to Appendix 9B of the Listing Requirements of Bursa Malaysia
Securities Berhad

23 Material litigation

There is no pending material litigation as at the date of this announcement.

24 Dividend Payable

No interim dividend has been declared by the Board of Directors for the current quarter (previous
corresponding period: Nil).

25 Disclosure of Realised and Unrealised Profits or Losses

As at As at
31 March 30 June
2016 2015
RM’000 RM’000
Total retained profits of the Company
and its subsidiaries:
- Realised 1,120,772 1,050,100
- Unrealised (93,442) (94,605)
1,027,330 955,495
Less: Consolidation adjustments (182,071) (143,687)

Total group retained profits as per

845,259 811,808
consolidated accounts

26 Earnings per share (EPS)

i) Basic EPS

Basic earnings per share is calculated by dividing the net profit of the period over the weighted
average number of ordinary shares in issue during the period excluding treasury shares held by
the Company.

Current Quarter Cumulative Quarter

31 March 31 March 31 March 31 March
2016 2015 2016 2015
Net profit/(loss) attributable
to the equity holders of the
Company (RM’000) (7,733) 635 43,131 19,186

Weighted average number

of ordinary shares in 967,993 967,994 967,993 967,994
issue (’000 )

Basic EPS (sen) (0.80) 0.07 4.46 1.98

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JAYA TIASA HOLDINGS BHD ( 3751-V )
QUARTERLY REPORT FOR THE THIRD FINANCIAL QUARTER ENDED 31 MARCH 2016

Part B – Explanatory Notes Pursuant to Appendix 9B of the Listing Requirements of Bursa Malaysia
Securities Berhad

26 Earnings per share (EPS) (cont’d)

ii) Diluted EPS

There are no dilutive potential ordinary shares. As such, the dilutive earnings per share of the
Group is equivalent to basic earnings per share.

27 Authorization for issue

The Board of Directors in accordance with a resolution of the directors has authorized the quarterly
report for issue on 26th of May 2016.

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