SALES PERFORMANCE

CONTRACT SALES – NEED TYPE

 IN 2015, CONTRACT SALES DROPPED BY 4.4% DUE TO STRONGER US DOLLAR (USD) BUT IT RISES
TO 14.1% IN TERMS OF MALAYSIAN RINGGIT (RM).
 TOTAL CONTRACT SALES ARE COMPOSED OF 86.6% PRE-NEED SERVICES AND 13.4% AT-NEED
SERVICES.
 PRE-NEED SERVICE INCREASED BY 17.9% IN TERMS OF RM, DECREASED BY 1.2% IN TERMS OF
USD.
 AT-NEED SERVICES DECREASED BY 5.7% IN RM AND 21% IN USD.

CONTRACT SALES – BUSINESS SEGMENT

 BURIAL SERVICES AND FUNERAL SERVICES WERE 85.5% AND 14.5% RESPECTIVELY.
 38.9% OF BURIAL SERVICES COMES FROM SALE OF NICHES, 29.1% FROM SALE OF BURIAL PLOTS,
13.9% FROM TOMB DESIGN AND CONSTRUCTION, AND 3.6% FROM OTHER BURIAL RELATED
SERVICES.
 SALE OF NICHES INCREASED BY 24.5% (USD), 48.1%(RM) YEAR OVER YEAR. CONTRIBUTED BY
SALES GROWTH FROM SINGAPORE AND NEWLY LAUNCHED NIRVANA CENTER IN MALAYSIA.
 SALE OF BURIAL PLOTS INCREASED BY 10.6% (RM), DECREASED BY 7.3% (USD). CONTRIBUTED BY
HIGHER SALES FROM MALAYSIA, INDONESIA, NEWLY LAUNCHED PARK IN THAILAND AND SALES
OFFICE IN HONGKONG.
 TOMB DESIGN AND CONSTRUCTION DECREASED BY 31.4% (USD), 18.2% (RM). THIS IS DUE TO
PROMOTION IN 2014 IN CONJUCTION WITH CHINESE LUNAR YEAR 2014.
 FUNERAL SERVICES INCREASED BY 22.2% (RM), 2.4% (USD).

CONTRACT SALES BY COUNTRY

 78.6% OF CONTRACT SALES IN 2015 COMES FROM MALAYSIA, WHILE THE REMAINING 21.4%
COMES FROM SINGAPORE (16.7%), INDONESIA (3.3%), THAILAND (1.1%) AND CHINA (0.3%).
 MALAYSIA’S CONTRACT SALES DECREASED BY 13.4%(USD), INCREASED BY 3.3% (RM) YEAR OVER
YEAR.
 SINGAPORE INCREASED BY 64.3% (USD), 96.1% (RM).
 INDONESIA DECREASED BY 11.7% (USD), INCREASED BY 5.4%.
 OVERSEAS COUNTRIES INCREASED BY 54.6% (USD), 84.5% (RM).
FINANCIAL PERFORMANCE

REVENUE BY NEED TYPE

 NIRVANA RECORDED USD 148,576,000 (RM 580,396,000) REVENUE IN 2015. A 10% DECREASE
YEAR OVER YEAR IN TERMS OF USD AND INCREASE OF 7.4% IN TERMS OF RM.
 81.1% OF REVENUE COMES FROM PRE-NEED SERVICE AND 18.9% FROM AT-NEED SERVICES.

REVENUE BY BUSINESS SEGMENT

 BURIAL SERVICES AND OTHERS TAKES UP 91% OF REVENUE WHILE FUNERAL SERVICES TAKES
9%.
 SALE OF NICHES CONTRIBUTED 34.7% TO REVENUE, 32.9% FOR BURIAL PLOT, 17.9% FOR TOMB
DESIGN AND CONSTRUCTION AND 5.5% FOR OTHER SERVICES.
 IN TERMS OF USD, FUNERAL AND TOMB INCREASED BY 0.4% AND THE REST HAVE DECREASED
COMPARED TO PREVIUOS YEAR.
 IN TERMS OF RM, 19.8% INCREASE FOR TOMB AND FUNERAL SERVICES, BURIAL PLOT ROSE BY
7.7%, NICHES ROSE BY 2.7%.

REVENUE BY COUNTRY

 83.6% OF TOTAL REVENUE COMES FROM MALAYSIA, 12.1% FROM SINGAPORE, 4.1% FROM
INDONESIA AND 0.2% FROM CHINA.
 IN TERM OF RM, MALAYSIA INCREASED BY 5.5%, SINGAPORE BY 18.1%, INDONESIA 13.5%.
 IN TERMS OF USD, ALL COUNTRY HAVE DECREASED REVENUE (MALAYSIA-11.6%, SINGAPORE-
1.1%, INDONESIA-4.9%).

GROSS PROFIT

 GROSS PROFIT INCREASED BY 5.2%. THIS IS DUE TO LOWER COST BROUGHT BY HIGHER LAND
UTILIZATION AND ACQUISITION OF TOMB DESIGN AND CONSTRUCTION BUSINESS (MARCH
2015)
 GROSS PROFIT RATE OF BURIAL AND OTHER SERVICES IS 77% AND 62% FOR FUNERAL SERVICES.
 AMONG BURIAL SERVICES, SALE OF NICHES HAS THE HIGHEST GROSS PROFIT OF 82%
FOLLOWED BY 79% OF BURIAL PLOT. GP RATE OF TOMB AND OTHER SERVICES WERE 66% AND
72% RESPECTIVELY.

PROFIT FOR THE YEAR

 NIRVANA’S AFTER-TAX PROFIT ROSE BY 131% DUE TO INCREASE IN EBIT AND LOWER INTEREST
AND TAXES.
 OTHER INCOME INCREASED BY 18% BROUGHT BY 30% INCREASE IN TOTAL INTEREST INCOME
AND 27% DIVIDEND INCOME.
 THERE’S A SIGNIFICANT INCREASE IN OTHER GAINS PARTICULARLY FROM NET FOREIGN
EXCHANGE GAINS FROM USD327,000 TO USD 41,458,000.
 TOTAL COMPREHENSIVE INCOME FOR THE YEAR DROPPED BY 22% DUE TO EXCHANGE
DIFFERENCES ARISING ON TRANSLATION TO PRESENTATION CURRENCY.
FINANCIAL POSITION

ASSETS

 NIRVANA’S ASSET IS MAINLY COMPOSED OF 75% CURRENT AND 25% NON-CURRENT.

 CASH AND CASH EQUIVALENTS WERE 39% AND INVENTORY IS 21% OF TOTAL ASSETS.
 9% DECREASE OF CURRENT ASSET IS DUE TO SIGNIFICANT DROP IN FINANCIAL ASSET
THROUGHT PROFIT AND LOSS PARTICULARLY TRUST FUND FOR SINGAPORE.
 NON-CURRENT ASSET ROSE BY 25% DUE TO ADDITIONAL LAND AND EXPENDITURE. LAND COST
INCREASED BY 466% FROM USD 8,292,000 TO 46,948,000.
 TRADE AND OTHER RECEIVABLES DROPPED BY 17%.

LIABILITIES

 TOTAL LIABILITIES IS 46% OF TOTAL LIABILITIES AND EQUITY.

 59% OF WHICH IS CURRENT OBLIGATION AND 41% NON-CURRENT.
 CURRENT LIABILITIES DROPPED BY 3%, CURRENT BORROWING IS DECREASED BY 19%, TRADE
PAYABLES ROSE TO 7%.
 6% DECREASE IN NON-CURRENT LIABILITIES IS DUE TO DROP IN DEFERRED PRE-NEED FUNERAL
CONTRACT REVENUE AND DEFERRED MAINTENANCE INCOME.

EQUITY

 EQUITY IS 54% OF TOTAL ASSETS.

 COMPOSED OF 90% RESERVES, 8% SHARE CAPITAL AND 2% NON-CONTROLLING INTEREST.

RATIO ANALYSIS

SOLVENCY

 STILL STRONG EVEN IF THERE’S A DROP IN CURRENT, QUICK AND CASH RATIO.

OPERATING EFFECIENCY

 ASSET TURNOVER DROPPED TO 0.25x FROM 0.36x

 FIXED ASSET TURNOEVR ROSE TO 12.60x FROM 12.46x.
 EQUITY TURNOVER DROPPED TO 0.47x FROM 0.90x

PROFITABILITY

 GROSS PROFIT IS INCREASED BY 5% FROM 71% TO 76%.

 OPERATING PROFIT – 3% INCREASE FROM 28% TO 31%.
 NET PROFIT – 37% INCREASE FROM 22% TO 58%.
 RETURN ON ASSETS – 16% (FROM 11%)
 RETURN ON TOTAL EQUITY – 27% (FROM 20%)
 RETURN ON OWNER’S EQUITY – 27% (FROM 19%)
  DIVIDENDS PAID IS 5X HIGHER IN 2015.
 RETENTION RATIO IS 68% (FROM 88%).
 SUSTAINABLE FROWTH IS 19%.

2015 2014 INCREASE

USD’000 USD’000 (DECREASE)

Revenue 148,576 165,064 (9.99%)

Cost of sales and services -36,140 -48,639 (25.70%)

Gross profit 112,436 116,425 (3.43%)

Other income 11,264 9,523 18.28%
Other gains and losses 40,904 1,149 3459.97%
Selling and distribution expenses -34,947 -37,474 (6.74%)
Administrative expenses -28,800 -30,442 (5.39%)
Other expenses 0 -5,287 (100.00%)
Finance costs -2,073 -2,531 (18.10%)

Profit before taxation 98,784 51,363 92.33%

Income tax expense -11,432 -13,531 (15.51%)

Profit for the year 87,352 37,832 130.89%

Other comprehensive (expense)/income
Items that will not be reclassified to profit or loss:
Exchange differences arising on translation to
-65,061 -5,928
presentation currency 997.52%
Items that may be reclassified subsequently to profit or
loss:
Exchange differences arising on translation of foreign
2,319 1,185
operations 95.70%
Fair value gain/(loss) on available-for-sale investments 2,006 -1,050 (291.05%)
Cumulative gain/(loss) reclassified from equity to profit
or loss on
disposal of available-for-sale investments -1,127 806 (239.83%)

Other comprehensive expense for the year -61,863 -4,987 1140.49%

Total comprehensive income for the year 25,489 32,845 (22.40%)

CASH FLOW
 CASH AND CASH EQUIVALENT WENT UP BY 49% WHICH IS MAINLY FROM INVESTING ACTIVITIES.
 CASH FLOW FROM OPERATING ACTIVITIES WENT DOWN BY 126% ALTHOUGH PROFIT BEFORE
TAX INCREASED BY 92%, THIS INCREASE IS DRIVEN BY FAIR VALUE GAIN ON FINANCIAL ASSET AT
FAIR VALUE THROUGH PROFIT OR LOSS, INTEREST INCOME FROM SHORT TERM DEPOSITS AND
UNREALISED GAIN ON FOREIGN EXCHANGE IN WHICH THERE IS NO ACTUAL CASHFLOW
INVOLVE.
 CASH FLOW FROM OPERATING ACTIVITIES WERE ALSO AFFECTED BY INCREASED EXPENTURES IN
INVENTORY AND LAND AND DEVELOPMENT.
 INVESTING ACTIVITIES GIVES AN INFLOW OF USD 128.7M IN 2015. THIS IS PRIMARILY DUE TO
WITHDRAWAL OF BANK DEPOSITS WITH MATURITY OVER THREE MONTHS.
 THERE’S ALSO A SIGNIFICANT INCREASE IN PROCEEDS FROM DISPOSAL OF FINANCIAL ASSETS
AT FAIR VALUE THROUGH PROFIT OR LOSS WHICH WENT UP BY 291%. THIS WAS COUNTERED
BY 242% INCREASE IN PURCHASE OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR
LOSS.
 NET CASH FROM FINANCING ACTIVITIES WENT DOWN BY 135% DUE TO LOWER PROCEEDS
FROM ISSUANCE OF SHARES WHICH WENT DOWN FROM USD 266.5M TO USD 28,000.
 NIRVANA PAID USD 27.9M IN DIVIDENDS IN 2015 WHICH IS 498% HIGHER THAN USD 4.6M IN 2014.
 THERE’S ALSO AN ADDITIONAL USD 50.6M RESTRICTED FUND.