Investor Presentation

TEO SENG CAPITAL BERHAD

September 2020

Mr. Gan Han LongBusiness Affairs Manager+6019 759 1368hl.gan@teoseng.com.my

1

Table of contents

Company profile

Investment case

IntroductionCorporateoverview

Business overview

Growth drivers

Financial overview

Milestones

Corporate structure

Board of Directors

Shareholder structure

Dividend history

Capital raising, buybacks, and M&A history

Product portfolio

Layer farming operational process

Key customers

Geographic footprint

ESG and sustainability

Awards

COVID-19 impact

Consumption of commercial eggs

Local and international promotion

Capacity utilization and expansion, and new products

Company outlook

Financial highlights

Segment financials

Key financial data & ratios

Earnings guidance

2

Company profile

▪ One of the largest commercial egg producers with

revenue of MYR 547m in 2019 (11% PAT margin) and

market cap of MYR 267m as of 21 July 2020

▪ Listed on the Second Board of Bursa Malaysia on 29

October 2008 and subsequently transferred to the

Main Board of Bursa on 3 August 2009

▪ An integrated layer farmer adopting an All-In-All-Out

(“AIAO”) layer farming management system,

supported by its own feed mill and paper egg tray

production and waste management (organic fertilizer

production)

▪ Successful management team with over 40 years of

industry experience in Malaysia

▪ Farms are accredited by the Malaysian Good

Agricultural Practice (“MyGAP”) of the Department of

Veterinary Services Malaysia

▪ More than 50% of layer farms are accredited by the

Singapore Food Agency (“SFA”; formerly known as

AVA) to export eggs to Singapore

▪ Synergizing animal health products division by

providing animal health care with quality products and

customized solutions to both internal and external

parties

412,758 433,712 424,209

490,285

546,535

2015 2016 2017 2018 2019

Revenue Summary (RM'000)

3

Investment case

Successful management team with over 40 years

of industry experience

Affordable, necessary and nutritious staple food for daily consumption

One of the largest

integrated poultry players in

both Malaysia and Singapore

Stable corporate growth

Sound and robust financial

fundamentals

Professional and high-quality

management and governance

Consistent dividend payout

4

Table of contents

Company profile

Investment case

IntroductionCorporate overview

Business overview

Growth drivers

Financial overview

Milestones

Corporate structure

Board of Directors

Management team

Shareholder structure

Dividend history

Capital raising, buybacks, and M&A history

Product portfolio

Layer farming operational process

Key customers

Geographic footprint

ESG and sustainability

Awards

COVID-19 impact

Financial highlights

Segment financials

Key financial data & ratios

Earnings guidance

Consumption of commercial eggs

Raw material and egg selling price trends

Market share

Local and international promotion

Capacity utilization and expansion, and new products

Company outlook

5

Mission and Vision: Hatching for the Future

VisionEnhance sustainability of business by focusing on cost effectiveness and develop corporate value that is aligned with the vision.

Mission 1To innovate variety of egg products to satisfy the consumers.

Mission 2Keeping pace with the time, we develop a fully integrated layer farming system andimplement industrially advanced technologies & knowledge which aim to sustain ourcompetitive advantages.

Mission 3To instill professional mindset of importance of cost-benefit at all levels of the participants in the company, including general workers, middle management and top management, in order to improve cost effectiveness.

6

Milestones – Teo Seng Capital Berhad

1992

Set up 1st

layer farm

1995

Implemented

Closed House

System

Own produce

paper egg trays

1998

Launched

HAPPY EGG

1999

All-IN-ALL-OUT

system

2002

Set up feed

mill plant

2005

Awarded export

permit to SG by

AVA

Acquisition of

animal health

products business

2008

Successfully listed on

Second Board of

Bursa Malaysia

2009

Transferred to

Main Board of

Bursa

2011 2011

Expanded trading

of egg business

into SG

Contract farming

with KPF

2015

Acquired BH Fresh

Food P/L as

distribution centre

of egg products in

SG

Incorporation of

waste

management

business

Commencement

of operation

of CPS 1

2016

Incorporation of

Ritma Premier P/L

in SG

2017

Awarded

“The Brand Laureate

Best Brand Award –

Product Branding”

HAPPY EGG product

innovation and

rebranding

2019

Acquired

Professional Vet

Enterprise S/B in

Kuching,

Sarawak

7

Milestones – Animal Health Products

2003 2004 2005 2007 2009 2011 2012 2014 2015 2016 2017 2018 2019

Business

CommencementIncorporation of

Ritma Premier Pte

Ltd in Singapore

Acquisition of

Professional Vet

Enterprise Sdn

Bhd in East

Malaysia

Incorporation

of Ritma

Prestasi Sdn

Bhd

8

Corporate structure

Teo Seng Capital

Teo Seng Farming

Success Century

Ritma Prestasi

Teo Seng Paper Products

Teo Seng Feedmill

Premium Egg Products

Teo Seng Integrated

Farming

Laskar Fertilizer

Ritma Premier

Professional Vet

Enterprise

B-Tech Aquaculture

BH Fresh Food

All subsidiaries are 100%-owned

Great Egg Industries

9

Experienced in banking and finance, credit

control management and financial management

Member of the Chartered Institute of

Management Accountant (“CIMA”), Malaysian

Institute of Accountants (“MIA”), CPA Australia

and ASEAN Chartered Professional Accountants

(“ACPA”). Experienced in financial management

and accounting

Experienced in furniture manufacturing and

trading industry, plantation industry and

producing of fertiliser industry

Over 25 years experience in sales and

marketing

Over 30 years experience in the poultry industry

Board of Directors

LAU JUI PENG

Over 20 years experience in the poultry industry

Non-Executive Chairman

CHOONG KEEN SHIAN

Independent Non-Executive Director

NAM HIOK JOO

Managing Director

FREDERICK NG YONG CHIANG

Independent Non-Executive Director

LOH WEE CHING

Non-Executive Director

DATO KOH LOW @ KOH KIM TOON

Independent Non-Executive Director

Audit

Committee

Risk Management

Committee

Nomination

Committee

Remuneration

Committee

10

Shareholder structure

Major shareholders (as of 12 Jun 2020) %

Advantage Valuations Sdn. Bhd. 52.2

Evli Emerging Frontier Fund (Finland) 4.4

Public Islamic Opportunities Fund 2.4

Leong Hup (Malaysia) Sdn. Bhd. 2.4

Saham Amanah Sabah 1.8

Teo Sik Ghood 1.5

Lau Eng Guang 0.9

Employees Provident Fund Board 0.8

Leong Hup Holdings Sdn. Bhd. 0.7

Lau Joo Kiang 0.6

Other / retail investors 32.3

Total 100.0

Commitment to minority shareholders

We are committed to creating value for minority

shareholders and acting in their best interests

through:

▪ Consistent payment of dividends

▪ Strong corporate governance

▪ Striving to maximize shareholder value

Advantage Valuations Sdn Bhd

Free float

52.19% 47.81%

Teo Seng Capital Berhad

11

Dividend history and policy

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019

Dividend declared (sen) 1.75 NIL 2.50 10.00 3.50 1.50 NIL 3.00 6.00

20%

0%

21%

41%

26%

19%

0%

30% 30%

0%

10%

20%

30%

40%

50%

Ma

r-1

2

Dec-

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Dividend / PAT Ratio

Dividend policy

The Board intends to pay dividends of between 20% to 50% of Profit After Tax (PAT) after taking into

consideration the Group’s retained profits, cash flow, as well as the funding requirements of the Group.

It is a policy of the Board in recommending dividends to allow shareholders to participate in the profits

of the Group whilst retaining adequate reserves for its future growth.

12

Capital raising, buybacks and M&A history

2008 2011 2015 2019

Initial Public Offering

Date: 29th Oct 2008

No. of shares: 38m at RM0.45

per share

Amount raised: RM17.37m

Acquired Success Century Sdn Bhd for layer farming

expansion

Expanded egg trading

business to SG by acquiring

Premium Egg Products Pte.Ltd.

Acquired Professional Vet Enterprise Sdn. Bhd. in

Kuching, Sarawak for direct

market penetration of East

Malaysia

Acquired BH Fresh Food Pte. Ltd. as distribution

centre of egg products in

SG

One (1) bonus issue for

every two (2) existing

shares

One (1) warrant for every

four (4) existing shares

Share buyback

Date: May to Jun 2015

No. of shares: 209,000

Amount: RM0.38m

Share buyback

Date: Nov to Dec 2019

No. of shares: 5,947,700

Amount: RM8.00m

Capital raising /

share issuance

Buyback M&A

13

Table of contents

Company profile

Investment case

IntroductionCorporateoverview

Business overview

Growth drivers

Financial overview

Milestones

Corporate structure

Board of Directors

Shareholder structure

Dividend history

Capital raising, buybacks, and M&A history

Product portfolio

Layer farming operational process

Key customers

Geographic footprint

ESG and sustainability

Awards

COVID-19 impact

Financial highlights

Segment financials

Key financial data & ratios

Earnings guidance

Consumption of commercial eggs

Local and international promotion

Capacity utilization and expansion, and new products

Company outlook

14

Product portfolio

Eggs

Our farm has been

accredited with the

Malaysian Good

Agricultural Practices

(My GAP) certification

by the Department of

Veterinary Services of

Malaysia

Paper Egg Trays

We produce sturdy

paper egg trays by

using recycled

newspapers and old

magazines, which

would otherwise cause

congestions in the

limited dumpsites

around the country

Fertilizer

Contains over 60% of

rich, organic matter

that includes essential

nutrients (NPK),

magnesium and calcium

for plants

Animal health products

We distribute a great

range of imported

animal health products

for both food animals

and pet animals such as

anti-parasites,

antibiotics, food

additives, supplements,

etc.

Fresh layer hen

Quality and highly-

demanded brands is

what sets us aside. We

are the best

manufacturers and

suppliers of quality

halal whole fresh layer

hen

Teo Seng Capital Berhad aspires to provide a variety of healthy egg products and create a happy life for ourstakeholders through product innovation, ethical business practices and environmentally sustainable measures to alignwith our core value of “Hatching for the Future.”

15

Product portfolio

Layer farming

Farm and production capacity:

▪ 24 farms categorized into Pullet and Layer farms (8

Pullets, & 16 Layers)

▪ The existing capacity for layer farming is 5.5m birds

(layer), daily laying approximately 4m eggs (3.8m in

Year 2018), approximately 40% of which is exported

to overseas

▪ 2 Central Packing Stations facilitated by 4 egg

grading machines with a total grading capacity of

650,000 eggs per hour

16

Product portfolio

Feed

▪ Produced and consumed 100% of it own manufactured

feeds

▪ Maximum production capacity per month can produce

approximately 30,000 matrix tons of feed, sufficient for

existing 4 million daily egg production and future layer

farming expansion

▪ Upgrade of feed mill plant was completed and

commenced operations in 4Q17

Paper Egg Tray

Paper Egg Trays and Production Capacity

▪ 2 machine set-up

▪ Effectively recycle used paper into paper egg tray with the

rate of 68 grams and 75 grams

▪ A new Europe technology-based machine is commencing

operation in Q3’16 and it increases the production capacity

of 6,840 pieces per hour

▪ Total produce approximately 260,000 paper egg trays daily

running on 24 hours basis, supplying 80% of internal

operation needs

▪ Supplying approximately 20% to external

17

Product portfolio

Animal Health Products

▪ To promote animal health care with quality products and

customized solutions

▪ First-hand information on the latest innovation and research

available for deployment toward our business

▪ Acquired Professional Vet Enterprise Sdn. Bhd. in Sep 2019 to

directly penetrate market in East Malaysia

▪ Offices located in Puchong (Selangor), Kuching (Sarawak) and

Singapore

▪ Sales – Food Animal Product (FAP) and Companion Animal

Product (CAP)

▪ Good quality and branded products from Bayer, Elanco,

Innovad, O. Corporation (Korea) and etc

▪ Obtained sole-distributorship for products of Bayer, Innovad,

Himalaya, Elanco (vaccine products) and Natural Core in

Malaysia and Singapore

18

Product portfolio

Organic Fertilizer

▪ Turning the chicken manure into organic fertilizer

▪ Recycle farm waste

▪ Sustain the environmental protection

▪ Awarded Bionexus status last October 2015

19

Layer farming operational process

Breeder (D.O.C.)

Pullet Farm (1 day to 16 weeks old)

Central Packaging Station (Grading and Packaging)

Finished Goods(Wholesalers, Hypermarket, Retails, Food Processing)

Layer Farm (17 to 90 weeks old)

20

Integrated layer farming operational process

Paper egg tray plant

Animal health products

Layer farm(17th to 90th week)

Pullet farm(DOC to 16th week)

Feedmill plant

Central packing station

Fertilizer plant

Further egg processing Graded eggs

Customers

Egg trays

Egg trays

Medicine, vaccine, and supplements

Medicine, vaccine, and supplements

Ungraded eggs

Raw chicken manure

Raw chicken manure

Grower feed

Layer feed

Customers

Organic fertilizer

LayerDay-old-chick (“DOC”)

21

Key customers

Wholesalers

Hypermarkets / Retailers

Food Producers

22

Geographic footprint

Our sales network in regional areas is:

▪ Peninsular Malaysia – eggs, animal health

products, egg trays and fertilizer

▪ East Malaysia – animal health products

▪ Singapore – eggs and animal health products

▪ Hong Kong – eggs

Singapore

Peninsular MalaysiaEast Malaysia

RitmaPrestasi

Teo Seng Capital

Professional VET Enterprise

Headquarters and subsidiaries are in

Yong Peng (Johor), Puchong (Selangor), Kuching (Sarawak) and Singapore

23

Environmental, Social & Governance (“ESG”)

o Corporate governance and regulatory compliance overseen by Corporate Affair Committee and reporting tomanagement team and Board of Directors

o Rigorous biosecurity and disease control at farms to minimize risk of disease outbreako International Standards ISO 22000 accreditation for egg division and PEFC ST 2002:2013 for egg trays

division

Economic & Market Place

o Farm waste management system is in place to minimize the negative environmental and social impacts causedby company’s operations

o Using recycled newspapers and corrugated cartons to produce paper egg trayso Wastewater treatment system for egg packing station and washing division and paper egg trays productiono Solar photovoltaic projects installed at farms and factories to generate renewable energy for daily operational

use and reduce emission of CO2

Environmental

o Human Resource Department is in charge of employee development, succession planning and all matters inregard to human resources and workforce

o Health, Safety & Environment officer and Safety & Health Committee establish and execute relevant policiesand procedures

Human Resource & Workplace

o Corporate Social Responsibility (“CSR”) events and activities organized, i.e. blood donations, school sharing events, charity and sponsorships

Social & Community

24

UN Sustainable Development Goals▪ 42% of management staff are women

▪ Equal remuneration for women and men

▪ Zero-tolerance policy towards all forms of violence

at work. No cases of workplace violence and

harassment

▪ Wastewater treatment system for egg packing

station and washing division and paper egg tray

production

▪ 15 solar photovoltaic projects installed at farms and

factories to generate renewable energy for daily

operational use

▪ As an expanding poultry company, the organic

growth of the company translates to job opportunities

for local workforce

▪ Farm waste management system is in place to

minimize the negative environmental and social

impact caused by company’s operations

▪ Using recycled newspapers and corrugated cartons

to produce paper egg trays

▪ Solar photovoltaic projects installed at farms and

factories to generate renewable energy for daily

operational use and reduce CO2 emissions

SASB Standards

Green House Gas

Emission

o Reduction of carbon discharge

totalling 4,000 tonnes a year

once installation of all solar PV

systems is completed

Energy

Management

o 30% of electricity cost saving on

the farms and factories which

installed solar PV systems

Workforce Health

& Safety

o Total recordable injury rate

(“TRIR”) tracked

Business Ethic o Anti-corruption policy in place

o Enterprise Risk Management and

Sustainability Framework is

established

25

ISO Certifications & Company Awards

First company in Malaysia to be awarded with ISO 22000 and PEFC ST 2002:2013 (Teo Seng Paper Products)

2007 – Teo Seng Farming Sdn. Bhd.

Outstanding Emerging Livestock Industry Award

2009 – Teo Seng Capital Berhad.

Outstanding Layer Farm Award

2013 – Teo Seng Farming Sdn. Bhd.

Outstanding Layer Farm Award

2006 – Ritma Prestasi Sdn. Bhd.

Excellent Business Achievement from Bayer

2008 – Ritma Prestasi Sdn. Bhd.

Silver Sales Achievement from Bayer

2013 – Ritma Prestasi Sdn. Bhd.

Outstanding Top 10 CompaniesMalaysia’s Fast-Moving CompaniesSME 100 Award 2013

2014 – Ritma Prestasi Sdn. Bhd.

Asia Pacific Entrepreneur Excellence Award – Excellence Service Quality

2014 – Ritma Prestasi Sdn. Bhd.

Asia Pacific Entrepreneur Excellence Award – Excellence Leadership

2017 – Teo Seng Farming Sdn. Bhd.

The Brand Laureate Best Brand Award –Product Branding

2015 – Teo Seng Farming Sdn. Bhd.

Outstanding Innovative Layer Farm Award

Others

26

COVID-19 impact

▪ As an “Essential Services and Goods” supplier, Teo Seng was allowed to continue

to operate as usual during period of Movement Control Order (“MCO”) and

Conditional MCO.

▪ No breach of contracts and we continue to meet our bank covenants and other

contractual covenants.

▪ No need to raise additional capital to weather the crisis as we are at healthy

financial position and our gearing ratio is below 1, at 0.52 times according to

2019 financial statements.

▪ Capital expenditures on new layer farm will be delayed by 6 months.

▪ Taking rigorous measures to mitigate the risk of infection and protect employees,

such as body temperature checking by security check point, face mask provided

to every staffs and hand sanitizers are in place.

▪ Since the declaration of 3rd interim dividend for financial year ended 2019 was

made on 13th Feb 2020 and share buyback activities in November and

December 2019, any subsequent declaration of dividend and share buyback

will be depending on the financial performance 2020.

▪ No layoffs and no changes to employee benefits and executive compensation.

▪ Going forward, employees will be paid in accordance with government

guidelines, while suppliers and service providers will be paid based on services

completed.

▪ We made donations of eggs to local community, NGO, government organizations,

charity organizations and others.

27

Table of contents

Company profile

Investment case

IntroductionCorporateoverview

Business overview

Growth drivers

Financial overview

Milestones

Corporate structure

Board of Directors

Management team

Shareholder structure

Dividend history

Capital raising, buybacks, and M&A history

Product portfolio

Layer farming operational process

Key customers

Geographic footprint

ESG and sustainability

Awards

COVID-19 impact

Consumption of commercial eggs

Local and international promotion

Capacity utilization and expansion, and new products

Company outlook

Financial highlights

Segment financials

Key financial data & ratios

Earnings guidance

28

Consumption of commercial eggs

Source: DVS, SFA, Company

8,708 8,829 9,289

10,442

11,368

11,943

14,087

13,413

1,594 1,639 1,686 1,716 1,791 1,900 1,971 2,029

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2011 2012 2013 2014 2015 2016 2017 2018

Consumption per year (million pcs)

MY SG

MY: 54%; CAGR 6.37%SG: 17%; CAGR 2.22%

300 299 309

341

361 365

383

363

307 308 312 313 323

338 349

358

0

50

100

150

200

250

300

350

400

450

2011 2012 2013 2014 2015 2016 2017 2018

Consumption per capita - MY & SG

MY SG

MY: 21%; CAGR 2.76%SG: 17%; CAGR 2.22%

29

Raw material cost and egg selling price trend

▪ Prices for maize and soya fluctuate due to supply and demand dynamics in the international

market, caused by several complex factors, including adverse regional weather conditions,

global currency fluctuations, and market speculation.

▪ Price of eggs is mainly affected by the demand and supply for eggs.

30

Local and international promotion

Promotion of eggs in Malaysia

▪ To increase the market share and

grow the sales on premium product

(Happy Egg) and designated eggs

(eggs sold to hypermarket)

▪ To explore direct sales

▪ To appoint distributor(s) for premium

products in Selangor / KL region

▪ To develop new premium products

▪ School education events at primary

schools (27 schools in 2018 and 2019)

▪ To conduct sampling and promotion

events in hypermarket and supermarket

and partnership or collaboration with

other industry preferable F&B,

corporates and associations (38 stores in 2018 and 2019)

▪ Truck advertisement on own and

customers’ trucks (54 trucks)

▪ To export 40% of daily egg production

to overseas

▪ To appoint distributor(s) to sell Happy

Egg in overseas

▪ On-going exploration of new overseas

markets (new countries)

Promotion of eggs overseas

31

Capacity utilization and expansion

Plant Current Utilization Planned expansion

Layer farm 100% +50% (by 2026)

Feed mill plant 70% +30%

Paper egg trays plant 100% -

Capacity utilization and expansion

32

New products

Hard-boiled Egg Soft-boiled Egg Herbal Egg

33

Company outlook

3.0

3.4 3.63.7

4.0 4.14.5

5.0

0

1

2

3

4

5

6

2015 2016 2017 2018 2019 2020(forecast)

2021(forecast)

2022(forecast)

Daily Egg Production (million eggs)

▪ 1m or 33% egg production

growth in 2015-2019

▪ 8.25% egg production

growth per year

▪ 1m or 25% egg production

growth in 2020-2022

▪ 8.33% egg production

growth per year

Acquired Professional Vet Enterprise

S/B to directly penetrate East

Malaysia market for trading of

animal health products

Investing in solar panel systems across

farms and factories for renewable

energy generation to save on

electricity costs and positively

contribute to environment conservation

efforts

Layer farming expansion in central

region in Peninsular Malaysia

Downstream businesses, i.e. hard-

boiled eggs and old hen processing

products

34

Table of contents

Company profile

Investment case

IntroductionCorporateoverview

Business overview

Growth drivers

Financial overview

Milestones

Corporate structure

Board of Directors

Management team

Shareholder structure

Dividend history

Capital raising, buybacks, and M&A history

Product portfolio

Layer farming operational process

Key customers

Geographic footprint

ESG and sustainability

Awards

COVID-19 impact

Financial highlights

Segment financials

Key financial data & ratios

Earnings guidance

Consumption of commercial eggs

Local and international promotion

Capacity utilization and expansion, and new products

Company outlook

35

Financial highlights

171 189

260 263

331

381 413

434 424

490

547

-

100

200

300

400

500

600

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Revenue Summary (RM mil)

31 33 37 18

45

82 69 48

29

70

107

-

100

200

300

400

500

600

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

EBITDA Summary (RM mil)

20 18 20 3

23 49 41

21 3

30 59

-

100

200

300

400

500

600

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Profit After Tax Summary (RM mil)

Revenue growth of 11.5% in 2019 was largely

attributed to the stability of egg price and growth

in egg sales

In line with the continuous growth of capital expenditure, Teo

Seng recorded remarkable EBITDA margin (2019: 19.6% ;

2018: 14.2%) over the years, and achieved growth of 54.6%

in 2019 was mainly attributed to the stability of egg and raw

materials prices and growth in egg sales

Egg industry is elastic to egg prices, which is

attributed to demand and supply dynamics.

In the case there is an egg oversupply in the

market, farmers will usually carry out early

depopulation of spent hens to reduce supply

and the price will be stabilized and

normalized.Same as Revenue, PAT growth of 93.6% in 2019 was

largely attributed to the stability of egg and raw

materials prices and growth in egg sales

36

Segment financials – Revenue

87.4%

12.6%

2018

87.7%

12.3%

2019

87.7%

12.3%

2018

90.2%

9.8%

2019

Revenue by segment EBITDA by segment

Poultry farming Investment and trading of poultry-related products

37

Segment financials – Geography

Revenue by geography

Malaysia Singapore

62.77%

29.01%

8.22%

2018

Others

62.22%

32.28%

5.51%

2019

38

Key financial data and ratios

RM’000 2016 2017 2018 2019 % change (2018 vs. 2019)

Revenue 433,712 424,209 490,285 546,535 11.5

Finance cost 6,676 7,332 8,310 7,821 -5.9

Profit before tax 25,968 4,086 41,298 77,068 86.6

Profit after tax 20,721 3,460 30,393 58,835 93.6

Total assets 468,195 494,980 543,281 562,548 3.6

Total liabilities 222,433 246,198 265,471 255,911 -3.6

Total borrowing 150,462 177,769 175,094 160,095 -8.6

Total equity 245,762 248,782 277,810 306,630 10.4

Cash and bank balances 34,264 19,368 30,001 41,101 37.0

Gearing ratio (x) 0.61 0.71 0.63 0.52 -17.2

Net debt-to-equity ratio (x) 0.47 0.64 0.52 0.39 -25.7

Net asset per share (RM) 0.82 0.83 0.93 1.04 12.6

Current ratio (x) 1.16 1.01 1.10 1.29 17.6

Return on equity (%) 8.43 1.39 10.94 19.19 75.4

Basic earnings per share (sen) 6.91 1.15 10.13 20.02 97.6

Number of shares 299,792,225 299,792,225 299,792,225 293,844,525

39

Earnings Guidance

2020/2nd half

Movement Control Order (“MCO”) and Conditional MCO implemented by Malaysia government havebeen lifted and Recovery MCO is on-going until 31st August 2020 and further extended to 31st

December 2020. Since the lifting of Conditional MCO, the government allows the businesses, i.e.schools, restaurants, factories etc. to resume operations provided standard operational procedures arecomplied with.

We foresee the consumption of eggs to rebound and believe that the egg price will recover if the basescenario (stable egg demand and supply) holds.

2020/12 months

Despite that the Group’s businesses are categorized as essential foods and the recent improved sellingprice of eggs, the uncertainty of market conditions is still challenging. The Board of Directors isconfident to face this challenge by taking necessary precautionary actions and by mitigate the possiblerisk impact on Covid-19 pandemic. Looking forward, the Group will continue being prudent inmanaging its financial resources, operational costs, and capex requirements.

40

Disclaimer

The financial information in this document is consolidated earnings and financial positions based on Annual Reports.

This document is provided for the convenience of investors only. Selected key financial data is only for easy and usefulreview of historical financial performance and comparison with competitors. The financial forecast outcomes maycause some parts of this document to change.

This document contains "forward-looking statements" – that is, statements related to future, not past events. In thiscontext, "forward-looking statements" often address our expected future business and financial performance, andoften contain words such as “future”, "expects”, "anticipates”, "intends”, "plans”, "believes”, "seeks” or "will".“Forward-looking statements" by their nature address matters that are, to different degrees, uncertain.

For us, particular uncertainties which could adversely or positively affect our future results include:

• The behaviour of financial markets including fluctuations in exchange rates, interest rates, etc.

• Strategic actions including market share growth and multi-dimensional business nature.

• Business developments in our major businesses including Commercial Egg (core product), Feed and Paper Egg Tray(supporting products), frozen old hens, organic fertilizer and animal health product (others products).

• Other numerous matters at the national and international levels which could affect our future results.

These uncertainties may cause our actual results to be materially different from those expressed in this document.

This presentation has been prepared by Teo Seng solely for use as a presentation to prospective and existinginvestors. The information in this presentation has not been independently verified. No representation or warranty,express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness orcorrectness of the information and opinions in this presentation. None of Teo Seng’s or any of its subsidiaries’ agentsor advisers, or any of their respective affiliates, advisers or representatives, undertake to update or revise anyforward-looking statements, whether as a result of new information, future events or otherwise, and none of them shallhave any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or itscontents or otherwise arising in connection with this presentation.

Teo Seng Capital Berhad aspires toprovide a variety of healthy eggproducts and create a happy life forour stakeholders through productinnovation, ethical business practicesand environmentally sustainablemeasures to align with our core valueof “Hatching for the Future.”

THANK YOU!

Mr. Gan Han LongBusiness Affairs Manager+6019 759 1368hl.gan@teoseng.com.my