BREADTALK GROUP LIMITED

Financial Statement and Dividend Announcement For The Third Quarter and Period Ended 30 September 2018

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL
YEAR RESULTS

1(a) An income statement and statement of comprehensive income or a statement of comprehensive income (for the
group) together with a comparative statement for the corresponding period of the immediately preceding financial
year

The Board of Directors of BreadTalk Group Limited is pleased to announce the consolidated results of the Group for the third
quarter and period ended 30 September 2018. The figures presented below have not been audited.

Group Group
3Q 2018 3Q 2017 9M 2018 9M 2017
(Restated) Increase/ (Restated) Increase/
$'000 $'000 (Decrease) $'000 $'000 (Decrease)
N.M
Revenue 157,657 154,084 2.3% 455,023 449,485 1.2%
N.M
Cost of sales (68,523) (69,162) -0.9% (199,526) (200,842) -0.7%
N.M
Gross profit 89,134 84,922 5.0% 255,497 248,643 2.8%
N.M
Other income 10,844 5,255 106.4% 24,624 26,135 -5.8%
N.M
Interest income 509 423 20.3% 2,519 1,137 121.5%
- N.M
Distribution and selling expenses (62,051) (59,249) 4.7% (183,421) (179,341) 2.3%
- - N.M
Administrative expenses (28,643) (21,363) 34.1% (70,977) (62,220) 14.1%
N.M
Interest expense (2,396) (1,119) 114.1% (7,308) (3,634) 101.1%
N.M
Profit before tax and share of results of joint ventures 7,397 8,869 -16.6% 20,934 30,720 -31.9%
N.M
Share of results of associates (117) (278) -57.9% (747) (671) 11.3%
N.M
Share of results of joint ventures (206) 256 N.M (101) 820 N.M
N.M
Profit before tax 7,074 8,847 -20.0% 20,086 30,869 -34.9%
N.M
Taxation (3,162) (2,853) 10.8% (8,181) (8,233) -0.6%
N.M
Profit after tax 3,912 5,994 -34.7% 11,905 22,636 -47.4%
N.M
Attributable to: N.M
Shareholders of the Company 2,696 3,806 -29.2% 6,311 16,815 -62.5%
Non-controlling interests 1,216 2,188 -44.4% 5,594 5,821 -3.9%
3,912 5,994 -34.7% 11,905 22,636 -47.4%
N.M
Other comprehensive incom e:
Net gain on available-for-sale financial assets - - N.M (6) 17 N.M
Foreign currency translation (556) (134) 314.9% (209) (1,406) -85.1%
Other comprehensive (loss) income for the period, net of tax (556) (134) 314.9% (215) (1,389) -84.5%

Total comprehensive income for the period 3,356 5,860 -42.7% 11,690 21,247 -45.0%
N.M
Attributable to: N.M
Shareholders of the Company 2,140 3,672 -41.7% 6,096 15,426 -60.5%
Non-controlling interests 1,216 2,188 -44.4% 5,594 5,821 -3.9%
3,356 5,860 -42.7% 11,690 21,247 -45.0%

1
1(a)(ii) Breakdown and Explanatory Notes to the income statement

(A) Profit before tax is arrived at after charging/(crediting) the following:

Group Group
3Q 2018 3Q 2017 9M 2018 9M 2017
(Restated) (Restated
Increase/ ) Increase/
$'000 $'000 (Decrease) $'000 $'000 (Decrease)

Depreciation and amortisation 10,963 10,556 3.9% 28,919 31,667 -8.7%

Foreign exchange loss/(gain), net 146 15 873.3% 324 600 -46.0%
Loss/(gain) on disposal of property, plant and equipment 5 (409) N.M. (49) (2,176) -97.7%
Loss/(gain) on divestment of investment securities (415) (37) 1021.6% 1,470 (8,638) N.M.
Government grant (186) (200) -7.0% (1,126) (1,461) -22.9%
Fair value gain on investment securities - - N.M. (321) - N.M.
Impairment/(Write back) of loan and receivables
- trade receivables (33) - N.M. (211) 41 N.M.
- other receivables (148) (3) N.M. 193 85 127.1%
Operating lease expenses 46,952 32,034 46.6% 116,007 101,625 14.2%
Personnel expenses 48,954 46,687 4.9% 140,270 138,975 0.9%
Property, plant and equipment w ritten off (Note 1) 574 1,060 -45.8% 2,037 2,645 -23.0%

N.M. - Not meaningful

Notes:
(1) The property, plant and equipment were written off as a result of closure, relocation or upgrading of outlets.

1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the
end of the immediately preceding financial year

Group Com pany

30.9.2018 31.12.2017 1.1.2017 30.9.2018 31.12.2017
(Restated) (Restated)
$'000 $'000 $'000 $'000 $'000
Non-current assets
Property, plant and equipment 162,341 169,097 180,663 76,937 73,228
Investment property 38,753 39,463 22,984 - -
Intangible assets 5,735 6,089 6,433 - -
Investment securities 129,762 72,068 72,878 - -
Investment in subsidiaries - - - 24,494 24,418
Investment in associates 26,485 26,682 27,033 - -
Investment in joint ventures 10,066 10,040 8,234 - -
Other receivables 1,121 1,107 1,413 - -
Due f rom related corporations - - - 30,692 30,692
Deferred tax assets 2,504 2,559 2,749 - -
376,767 327,105 322,387 132,123 128,338

2
 Group Com pany
30.9.2018 31.12.2017 1.1.2017 30.9.2018 31.12.2017
(Restated) (Restated)
$'000 $'000 $'000 $'000 $'000
Current assets
Investment securities 5,000 12,886 17,222 - -
Inventories 10,980 9,721 9,806 - -
Trade and other receivables 56,783 51,953 52,049 1,786 2,417
Prepayments 7,728 6,771 4,824 223 92
Tax recoverable 252 280 - - -
Due from related corporations 326 1,128 1,094 152,436 105,149
Amount due from minority shareholders of subsidiaries
(non-trade) 1,145 525 509 - -
Cash and cash equivalents 210,672 141,245 120,589 2,464 1,278
292,886 224,509 206,093 156,909 108,936

Current liabilities
Trade and other payables 86,236 90,326 86,404 2,341 2,175
Other liabilities 75,768 78,710 69,612 7,034 7,588
Provision f or reinstatement cost 15,904 15,846 14,417 27 27
Due to related corporations 2,076 3,881 3,903 19,687 57,787
Loan from a minority shareholder of a subsidiary 629 200 200 - -
Short term loans 31,908 19,237 7,215 26,500 10,000
Notes payables 75,000 - - 75,000 -
Current portion of long-term loans 17,089 37,864 24,238 3,348 4,122
Tax payable 9,687 10,660 9,854 896 565
314,297 256,724 215,843 134,833 82,264

Net current (liabilities)/assets (21,411) (32,215) (9,750) 22,076 26,672

Non-current liabilities
Long-term loans 29,174 50,533 74,857 16,857 35,676
Notes payables 100,000 75,000 75,000 100,000 75,000
Loan from a minority shareholder of a subsidiary 519 508 549 - -
Other liabilities 8,407 9,392 11,385 - -
Def erred tax liabilities 4,275 4,576 4,324 2,391 2,391
142,375 140,009 166,115 119,248 113,067
Net assets 212,981 154,881 146,522 34,951 41,943

Share capital and reserves

Share capital 33,303 33,303 33,303 33,303 33,303
Treasury shares (247) (460) (587) (247) (460)
Accumulated profits 139,404 93,343 88,543 1,141 8,332
Other reserves 4,040 3,216 5,328 754 768
176,500 129,402 126,587 34,951 41,943
Non-controlling interests 36,481 25,479 19,935 - -
Total equity 212,981 154,881 146,522 34,951 41,943

3
1(b)(ii) Aggregate amount of group's borrowings and debt securities

Amount repayable in one year or less, or on demand

As at 30.9.2018 As at 31.12.2017
Secured Unsecured Secured Unsecured
$'000 $'000 $'000 $'000
20,783 103,843 36,502 20,799

Amount repayable after one year

As at 30.9.2018 As at 31.12.2017
Secured Unsecured Secured Unsecured
$'000 $'000 $'000 $'000
29,174 100,519 49,740 76,301

Details of any collateral

(1) As at 30 September 2018, a total amount of $204.4 million of the Group's bank borrowings are unsecured.

(2) The remaining bank loans are secured by the following:

- a closed legal mortgage in favour of the bank over the property at Private Lot A0135906 at Plot 1A, Tai Seng Street in
Paya Lebar Industrial Estate;
- certain investment securities.
- certain machineries and equipment

1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of
the immediately preceding financial year

Group Group
3Q 2018 3Q 2017 9M 2018 9M 2017
(Restated) (Res tated)

$'000 $'000 $'000 $'000

Cash flow s from operating activities

Profit before tax 7,074 8,847 20,086 30,869
Adjustments for:
Amortisation of intangible assets 94 102 302 329
Bad debts w ritten off (16) - (15) -
Depreciation of property, plant and equipment 10,869 10,454 28,617 31,338
Loss/(gain) on divestment of investment securities (415) (37) 1,470 (8,638)
(Gain)/loss on disposal of property, plant and equipment 5 (372) (49) (2,139)
(Write back)/impairment loss on property, plant and equipment (23) (329) (70) (561)
Fair value gain on investment securities - - (321) -
Intangible assets w ritten off 77 - 77 -
Interest expense 2,396 1,119 7,308 3,634
Interest income (509) (423) (2,519) (1,137)
Inventories w ritten off - 2 1 7
Property, plant and equipment w ritten off 574 1,060 2,037 2,645
Share based payment expenses 40 100 199 276
Share of results of associates 117 278 747 671
Share of results of joint ventures 206 (256) 101 (820)
(Write back)/impairment loss on trade receivables (33) - (211) 41
(Write back)/impairment loss on other receivables (148) (3) 193 85
(Write back)/w ritedow n of inventories 179 - 9 -
Write back of provision for reinstatement cost - (24) (83) (66)
Exchange differences 180 (198) (246) 1,783

Operating cash flow before w orking capital changes 20,667 20,320 57,633 58,317

4
 Group Group
3Q 2018 3Q 2017 9M 2018 9M 2017
(Restated) (Restated)
$'000 $'000 $'000 $'000

(Increase)/decrease in:
Amount due from associate (trade) - - 9 (3)
Amount due from joint ventures (trade) - (91) (55) 121
Inventories 39 (984) (1,270) (663)
Prepayments (401) (2,300) (956) (3,818)
Trade and other receivables 975 (1,872) (3,907) 1,112
Increase/(decrease) in:
Amount due to a joint venture (trade) (53) 155 (528) (36)
Other liabilities 2,962 2,842 (3,725) 546
Trade and other payables (1,170) 3,640 (3,093) 3,312
Cash generated from operations 23,019 21,710 44,108 58,888
Tax paid (4,489) (4,450) (9,318) (9,778)
Net cash flow from operating activities 18,530 17,260 34,790 49,110

Cash flow s from investing activities

Additions to intangible assets - - (28) (23)
Amount due from joint ventures (non-trade) 19 (301) 794 (421)
Amount due to joint ventures (non-trade) (3) 29 (38) (54)
Amount due to associates (non-trade) (445) (403) (1,177) 41
Cash paid for reinstatement expenses (171) (387) (615) (619)
Dividends received from a joint venture - 348 - 348
Dividends received from an associate - - 60 -
Interest income received 509 423 2,519 1,137
Investment in an associate (477) (809) (477) (2,233)
Investment in a joint venture - - - (1,005)
Proceeds from disposal of property, plant and equipment 7 785 110 3,087
Proceeds from divestment of investment securities 3,037 305 20,155 26,805
Purchase of property, plant and equipment (10,434) (7,499) (24,817) (23,436)
Purchase of investment securities (3,537) (7,315) (19,790) (7,315)
Net cash flow used in investing activities (11,495) (14,824) (23,304) (3,688)

Cash flow s from financing activities

Acquisition of non-controlling interests - - (419) -
Capital contribution from non-controlling interests 6,263 - 6,263 -
Dividends paid to shareholders of the company (2,816) (2,814) (11,264) (14,067)
Interest paid (2,396) (1,119) (7,308) (3,634)
Proceeds from long-term loans 109 - 476 -
Proceeds from short-term loans 16,024 3,358 42,557 18,337
Proceeds from medium term notes - - 100,000 -
Repayment of loan due to minority shareholder 2 (8) 431 (34)
Repayment of long-term loans (19,413) (2,309) (42,608) (21,679)
Repayment of short-term loans (21) (2,771) (29,933) (18,692)
Net cash flow (used in)/from financing activities (2,248) (5,663) 58,195 (39,769)

Net increase in cash and cash equivalents 4,787 (3,227) 69,681 5,653
Effect of exchange rate changes on cash and cash equivalents (707) (140) (254) (1,478)
Cash and cash equivalents at beginning of financial period 206,592 128,131 141,245 120,589
Cash and cash equivalents at end of financial period 210,672 124,764 210,672 124,764

Note A: Cash and cash equivalents com prise: Group

30.9.2018 31.12.2017

$'000 $'000

Cash on hand and at bank 210,666 141,239

Short term FD 6 6
210,672 141,245

5
1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues
and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year
Attributable to Shareholders of the Com pany
Other Non-
Treasury Accum ulated reserves controlling
Share capital shares profits (Note B) Total interests Total equity
Group $'000 $'000 $'000 $'000 $'000 $'000 $'000

Balance at 1 January 2018, as previously reported 33,303 (460) 98,933 3,216 134,992 25,479 160,471
Impact of adopting SFRS(I) 9 - - 51,014 - 51,014 - 51,014
Impact of adopting SFRS(I) 15 - - (5,590) - (5,590) - (5,590)
Balance at 1 January 2018 (Restated) 33,303 (460) 144,357 3,216 180,416 25,479 205,895
Profit for the period - - 3,615 - 3,615 4,378 7,993
Other comprehensive income
Net gain on fair value changes of available-for-sale
financial assets - - - (6) (6) - (6)
Foreign currency translation - - - 347 347 - 347
Total other comprehensive income, net of tax - - - 341 341 - 341
Total com prehensive incom e for the period - - 3,615 341 3,956 4,378 8,334
Contributions by and distributions to ow ners
Share-based payments - - - 159 159 - 159
Dividends paid - - (8,448) - (8,448) - (8,448)
Treasury shares transf erred on vesting of restricted
share grant - 213 - (213) - - -
Total contributions by and distributions to ow ners - 213 (8,448) (54) (8,289) - (8,289)
Changes in ow nership interests in a subsidiary
Issuance of new shares to non-controlling interest - - - - - 1,020 1,020
Acquisition of non-controlling interests w ithout a change
in control - - - 1,054 1,054 (1,472) (418)
Total changes in ow nership interests in a
subsidiary - - - 1,054 1,054 (452) 602

Balance at 30 June 2018 33,303 (247) 139,524 4,557 177,137 29,405 206,542

Profit for the period - - 2,696 - 2,696 1,216 3,912

Other comprehensive income
Foreign currency translation - - - (556) (556) - (556)
Total other comprehensive income, net of tax - - - (556) (556) - (556)

Total com prehensive incom e for the period - - 2,696 (556) 2,140 1,216 3,356
Contributions by and distributions to ow ners
Share-based payments - - - 39 39 - 39
Dividends paid - - (2,816) - (2,816) - (2,816)
Total contributions by and distributions to ow ners - - (2,816) 39 (2,777) - (2,777)
Changes in ow nership interests in a subsidiary
Issuance of new shares to non-controlling interest - - - - - 5,860 5,860
Total changes in ow nership interests in a
subsidiary - - - - - 5,860 5,860

Balance at 30 Septem ber 2018 33,303 (247) 139,404 4,040 176,500 36,481 212,981

6
 Attributable to Shareholders of the Com pany
Other Non-
Treasury Accum ulated reserves controlling
Share capital shares profits (Note B) Total interests Total equity
Group $'000 $'000 $'000 $'000 $'000 $'000 $'000

Balance at 1 January 2017, as previously reported 33,303 (587) 93,966 5,328 132,010 19,935 151,945
Impact of adopting SFRS(I) 15 - - (5,423) - (5,423) - (5,423)
Balance at 1 January 2017 (Restated) 33,303 (587) 88,543 5,328 126,587 19,935 146,522
Prof it for the period (Restated) - - 13,009 - 13,009 3,633 16,642
Other comprehensive income
Net gain on f air value changes of available-for-sale
f inancial assets - - - 17 17 - 17
Foreign currency translation - - - (1,272) (1,272) - (1,272)
Total other comprehensive income, net of tax - - - (1,255) (1,255) - (1,255)
Total com prehensive incom e for the period - - 13,009 (1,255) 11,754 3,633 15,387
Contributions by and distributions to ow ners
Share-based payments - - - 176 176 - 176
Dividends paid - - (11,253) - (11,253) - (11,253)
Treasury shares transferred on vesting of restricted
share grant - 127 - (127) - - -
Total contributions by and distributions to
ow ners - 127 (11,253) 49 (11,077) - (11,077)
Changes in ow nership interests in a subsidiary
Acquisition of non-controlling interests w ithout a
change in control - - - (719) (719) 719 -
Total changes in ow nership interests in a
subsidiary - - - (719) (719) 719 -

Balance at 30 June 2017 33,303 (460) 90,299 3,403 126,545 24,287 150,832

Prof it for the period (Restated) - - 3,806 - 3,806 2,188 5,994

Other comprehensive income
Foreign currency translation - - - (133) (133) - (133)
Total other comprehensive income, net of tax - - - (133) (133) - (133)

Total com prehensive incom e for the period - - 3,806 (133) 3,673 2,188 5,861
Contributions by and distributions to ow ners
Share-based payments - - - 100 100 - 100
Dividends paid - - (2,814) - (2,814) - (2,814)
Total contributions by and distributions to
ow ners - - (2,814) 100 (2,714) - (2,714)

Changes in ow nership interests in a subsidiary

Issuance of new shares to non-controlling interest - - - - - 200 200
Total changes in ow nership interests in a
subsidiary - - - - - 200 200
Balance at 30 Septem ber 2017 33,303 (460) 91,291 3,370 127,504 26,675 154,179

7
 Other
Treasury Accum ulated reserves
Share capital shares profits (Note B) Total
Com pany $'000 $'000 $'000 $'000 $'000

Balance at 1 January 2018, as previously

reported 33,303 (460) 8,332 768 41,943
Profit for the period - - 2,965 - 2,965
Total com prehensive incom e for the
period - - 2,965 - 2,965

Contributions by and distributions to ow ners

Share-based payments - - - 159 159
Dividend paid - - (8,448) - (8,448)
Treasury shares transferred on vesting of
restricted share grant - 213 - (213) -
Total contributions by and distributions
to ow ners - 213 (8,448) (54) (8,289)

Balance at 30 June 2018 33,303 (247) 2,849 714 36,619

Profit for the period - - 1,108 - 1,108

Total com prehensive incom e for the
period - - 1,108 - 1,108

Contributions by and distributions to ow ners

Share-based payments - - - 40 40
Dividend paid - - (2,816) - (2,816)
Purchase of treasury shares - - - - -
Treasury shares transferred on vesting of
restricted share grant - - - - -
Total contributions by and distributions
to ow ners - - (2,816) 40 (2,776)

Balance at 30 Septem ber 2018 33,303 (247) 1,141 754 34,951

8
 Other
Treasury Accum ulated re serves
Share capital shares profits (Note B) Total
Com pany $'000 $'000 $'000 $'000 $'000

Balance at 1 January 2017, as

previously reported 33,303 (587) 6,779 520 40,015
Profit for the period - - 11,597 - 11,597
Total com prehensive incom e for the
period - - 11,597 - 11,597
Contributions by and distributions to
ow ners
Share-based payments - - - 176 176
Dividends paid - - (11,253) - (11,253)
Treasury shares transferred on vesting
of restricted share grant - 127 - (127) -
Total contributions by and
distributions to ow ners - 127 (11,253) 49 (11,077)

Balance at 30 June 2017 33,303 (460) 7,123 569 40,535

Profit for the period - - (923) - (923)

Total com prehensive incom e for the
period - - (923) - (923)
Contributions by and distributions to
ow ners
Share-based payments - - - 100 100
Dividends paid - - (2,814) - (2,814)
Total contributions by and
distributions to ow ners - - (2,814) 100 (2,714)

Balance at 30 Septem ber 2017 33,303 (460) 3,386 669 36,898

Note B: Other reserves

Group Com pany

30.9.2018 30.9.2017 30.9.2018 30.9.2017

$000 $000 $000 $000
Statutory reserve fund 2,954 2,954 - -
Translation reserve 1,432 1,891 - -
Fair value adjustment reserve 9 17 - -
Capital reserve 178 178 178 178
Share based compensation reserve 576 491 576 491
Premium on acquisition of non-controlling interests (1,109) (2,161) - -
4,040 3,370 754 669

9
1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share
buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of
shares for cash or as consideration for acquisition or for any other purpose since the end of the previous
period reported on. State the number of shares that may be issued on conversion of all the outstanding
convertibles, if any, against the total number of issued shares excluding treasury shares and subsidiary
holdings of the issuer, as at the end of the current financial period reported on and as at the end of the
corresponding period of the immediately preceding financial year. State also the number of shares held as
treasury shares and the number of subsidiary holdings, if any, and the percentage of the aggregate number
of treasury shares and subsidiary holdings held against the total number of shares outstanding in a class
that is listed as at the end of the current financial period reported on and as at the end of the corresponding
period of the immediately preceding financial year
Issued and Paid-up
Num ber of Ordinary Share Capital
Share Capital - Ordinary Shares Shares S$000
At 1 January 2018 281,638,550 33,303
Shares arising f rom share split1 281,638,550 -
At 30 September 2018 563,277,100 33,303

Note: 1 On 17 May 2018, the Company completed the share split of every one (1) ordinary share in the capital of the
company into two (2) ordinary shares. The Company now has an issued and paid-up share capital of approximately
$33,302,915, comprising 563,786,476 shares (30 Sep 2017: 563,786,476), including 509,376 treasury shares (30
September 2017: 915,908) as at 30 September 2018. The Company did not have any subsidiary holdings or other
convertibles as at 30 September 2018.

1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current
financial period and as at the end of the immediately preceding year

As at 30 September 2018, the Company's issued and paid up capital, excluding 509,376 (31 December 2017:
915,908) treasury shares held, comprises 563,277,100 (31 December 2017: 562,870,568) ordinary shares as
adjusted for the share split.

1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at
the end of the current financial period reported thereon

Number of Treasury Shares

3Q 2018 3Q 2017 9M 2018 9M 2017

Balance at beginning of financial period as adjusted for share split 509,376 915,908 915,908 1,158,120

Treasury shares transferred on vesting of restricted share grant as - - (406,532) (242,212)

adjusted for share split

Balance at end of financial period as adjusted for share split 509,376 915,908 509,376 915,908

Note: The treasury shares for the current and prior financial periods have been adjusted for the increase in the
number of treasury shares resulting from the share split.

1(d)(v) A statement showing all sales, transfers, cancellation and/or use of subsidiary holdings as at the end
of the current financial period reported on

Not applicable.

2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the
Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent
standard)

The figures have not been audited or reviewed by the Company's auditors.

3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or
emphasis of matter)

Not applicable.

10
4. Whether the same accounting policies and methods of computation as in the issuer's most recently
audited annual financial statements have been applied

The Accounting Standards Council announced on 29 May 2014 that Singapore incorporated companies listed on the
Singapore Exchange will apply a new financial reporting framework identical to the International Financial Reporting
Standards. The Group and Company has adopted the new financial reporting framework on 1 January 2018 and
adopted the Singapore Financial Reporting Standards (International) (“SFRS(I)”) which are effective on 1 January
2018.

5. If there are any changes in the accounting policies and methods of computation, including any required by
an accounting standard, what has changed, as well as the reasons for, and the effect of, the change

Other than the adoption of SFRS(I) which are effective for its financial year beginning 1 January 2018, the Group
expects that the adoption of the new financial reporting framework will have no material impact to the Group's and the
Company's financial statements in the year of initial application. The impact of adopting the following SFRS(I) which
are effective for financial year beginning 1 January 2018, are detailed as follows:

SFRS(I) 1 – First-time adoption of Singapore Financial Reporting Standards (International)

On transition to SFRS(I), the Group restated comparative periods financial statements to retrospectively apply SFRS(I)
where applicable, except where SFRS(I) 1 specifically prohibited such retrospective applications and where optional
exemptions from retrospective applications were elected.

SFRS(I) 9 – Financial Instruments

The Group and Company adopted SFRS(I) 9 and elected to apply the standard prospectively from effective date and
recognized the difference between the previous carrying amount and the carrying amount at the beginning of the year
in the opening retained earnings.

SFRS(I) 15 – Revenue from Contracts with Customers

The Group and Company adopted SFRS(I) 15 using the full retrospective approach and applied all practical
expedients available.

Summary of Impact

Group $’000 Adjustments arising from:

1 January 2017 SFRS(I) 9 SFRS(I) 15 1 January 2017
(Restated)
Current Assets
Trade and Other 57,472 - (5,423) 52,049
Receivables

Equity
Accumulated Profits 93,966 - (5,423) 88,543

Group $’000 Adjustments arising from:

31 December 2017 SFRS(I) 9 SFRS(I) 15 31 December 2017
(Restated)
Current Assets
Trade and Other 57,543 - (5,590) 51,953
Receivables

Equity
Accumulated Profits 98,933 - (5,590) 93,343

Group $’000 Adjustments arising from:

9M 2017 SFRS(I) 9 SFRS(I) 15 9M 2017 (Restated)
Profit and Loss
Revenue 449,451 - 34 449,485

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Group $’000 Adjustments arising from:
1 January 2018 SFRS(I) 9 SFRS(I) 15 1 January 2018
(Restated)
Current Assets
Trade and Other 57,542 (307) (5,590) 51,645
Receivables
Investment 12,886 (383) - 12,503
Securities

Non Current
Assets
Investment 72,068 51,704 - 123,772
Securities

Equity
Accumulated Profits 98,933 51,014 (5,590) 144,357

6. Earnings per ordinary share of the group for the current period reported on and the corresponding period
of the immediately preceding financial year, after deducting any provision for preference dividends

Group Group
3Q 2018 3Q 2017 9M 2018 9M 2017
(Restated) (Restated)
Earnings per ordinary share for the period:

(a) Based on w eighted average number of ordinary shares in issue 0.48 cent 0.68 cent 1.34 cents 3.59 cents

Weighted average number of ordinary shares 563,277,100 562,870,568 469,352,413 468,991,526

(b) On a fully diluted basis 0.48 cent 0.68 cent 1.34 cents 3.58 cents

Adjusted w eighted average number of ordinary shares 563,591,884 563,185,352 469,614,733 469,238,562

Note: For better comparison of the Group’s financial performance, the weighted average number of ordinary shares
for the current and prior financial periods has been adjusted for the increase in the number of ordinary shares
resulting from the share split.

7. Net asset value (for the issuer and the group) per ordinary share based on total number of issued shares
excluding treasury shares of the issuer at the end of the (a) current period reported on and (b) immediately
preceding financial year

Group Company
30.9.2018 31.12.2017 30.9.2018 31.12.2017
(Restated)

Net asset value per ordinary share based on issued share capital as at the end of
period 37.8 cents 27.5 cents 6.2 cents 7.5 cents

Note: The net asset value per ordinary share of the Group and the Company as at 30 September 2018 is computed
based on the total number of issued shares (excluding 509,376 treasury shares) of 563,277,100 (31 December 2017:
562,870,568) as adjusted for the share split.

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8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the
group's business. The review must discuss any significant factors that affected the turnover, costs, and
earnings of the group for the current financial period reported on, including (where applicable) seasonal or
cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets
or liabilities of the group during the current financial period reported on

Overview

(A) Statement of Comprehensive Income

Group revenue for 9M FY2018 rose 1.2% Y/Y from $449.5 million to $455.0 million, led by growth from the Food
Atrium and Restaurant Divisions as well as contribution by the 4orth Division, offset by decline at the Bakery Division.
Profit After Tax and Minority Interests (“PATMI”) for 9M FY2018 declined 62.5% from $16.8 million to $6.3 million, as
9M FY2017 saw the recognition of $9.3 million in net capital gain from the divestment of the Group’s investment in
TripleOne Somerset. Excluding the divestment gain, core net profit of the Group would have been 5.2% higher Y/Y.

Bakery Division revenue declined 5.0% Y/Y to $212.0 million during 9M FY2018, attributed to lower revenue from
direct operated stores in Shanghai, Beijing and Hong Kong, as well as lower franchise revenue from China. This was
mitigated by stronger revenue from direct operated stores in Singapore and higher international franchise revenue.
Direct operated outlet count decreased during 9M FY2018 from 240 to 223, while franchise outlet count decreased
from 631 to 616 during the same period, largely due to reduction in China. Earnings Before Interest, Tax,
Depreciation and Amortisation (“EBITDA”) for the Division declined 16.1% Y/Y to $15.7 million, with EBITDA margin
at 7.4% (9M FY2017: 8.4%), primarily attributed to weaknesses in profitability at the China operations.

Food Atrium Division revenue grew 4.3% Y/Y to $117.2 million. During 9M FY2018, the Division opened 1 food atrium
in Shenzhen and 1 in Hong Kong and closed our only outlet in Hangzhou. Same store sales growth momentum
remained strong across the entire portfolio. EBITDA improved 19.2% Y/Y to $21.1 million with EBITDA margin better
at 18.0% (9M FY2017: 15.7%), helped mainly by higher revenue driven by low stall vacancy.

Restaurant Division revenue rose 7.7% Y/Y to $112.9 million for 9M FY2018, with the addition of 2 more outlets – 1 in
Singapore and 1 in Thailand. EBITDA declined slightly by 0.6% Y/Y to $22.1 million primarily due to certain one-off
expenses related to the United Kingdom operations incurred during the third quarter ahead of its official opening in
4Q FY2018. As a result, EBITDA margin declined from 21.2% to 19.6%. Excluding the one-off expenses, both
EBITDA and EBITDA margin for the period would have been higher Y/Y.

4orth Division turned in a revenue of $9.7 million for 9M FY2018. The business division currently comprises 5 Sō
Ramen and 1 TaiGai outlets in Singapore, 2 Song Fa Bak Kut Teh (“Song Fa”) and 1 Una-Yu outlets in Shanghai,
China. The Division reported an EBITDA loss of $0.8 million primarily attributed to pre-opening expenses incurred
during the first nine months ahead of the opening of TaiGai (in September 2018) and the first Wu Pao Chun outlet in
Shanghai (in 4Q FY2018). On a standalone basis, Sō Ramen has been contributing positive net profit to the Division
during 9M FY2018, compared to a net loss during 9M FY2017, following our successful revamp of the now defunct
RamenPlay brand, which was completed in September 2017.

Overall interest expense for 9M FY2018 increased 101% Y/Y to $7.3 million on higher total debt as the Group issued
$100 million of 5-year, 4.00% Medium Term Note in January 2018, in anticipation of our capital expenditure
requirements for FY2018 and FY2019. Plans are already underway for the construction of our new integrated central
production facility in China which will provide greater production capacity to support the growth of our existing and
new businesses. Notably, close to 70% of the Group’s total borrowings are locked in on fixed rate for the next 3 to 5
years, which largely immunizes the Group against the current rising interest rate environment. Through prudent
treasury management, interest income also rose 121.5% to $2.5 million which partially helped to mitigate the impact
of higher interest cost.

Share of results of associates and joint ventures were weaker in 9M FY2018, contributing a combined loss of $0.8
million compared to a profit of $0.1 million in 9M FY2017.

Earnings per share (EPS) on a fully diluted basis for 9M FY2018 was 1.34 cents compared to 3.58 cents for 9M
FY2017.

Net asset value (NAV) per share was 37.8 cents as at 30 September 2018 compared to 27.5 cents as at 31
December 2017.

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Number of outlets including franchise under the Group:

Net increase / Net increase /

30.9.2018 31.12.2017 (decrease) 30.9.2017 (decrease)
Bakery 839 871 -3.7% 859 -2.3%
- Direct operated stores 223 240 -7.1% 255 -12.5%
- Franchise 616 631 -2.4% 604 2.0%
Food Atrium 54 53 1.9% 54 0.0%
Restaurant 27 25 8.0% 24 12.5%
4orth 9 5 80.0% 5 80.0%
Total 929 954 -2.6% 942 -1.4%

(B) Balance Sheet

As at 30 September 2018,

Non-current assets increased by $49.7 million or 15.2% from $327.1 million to $376.8 million mainly due to increase
in investment securities by $57.7 million and offset by a decrease in property, plant and equipment by $6.8 million
due to depreciation. The large increase in investment securities arose due to the restatement effect upon adoption of
the SFRS(I) 9 on 1 January 2018.

Current assets increased by $68.4 million or 30.5% from $224.5 million to $292.9 million mainly due to increase in
cash and cash equivalents by $69.4 million; offset by decreased in amount due from related corporations by $0.8
million.

Current liabilities increased by $57.6 million or 22.4% from $256.7 million to $314.3 million mainly due to notes
payable of $75.0 million which is due on 1 April 2019; offset by decrease in current portion of long term loans by
$20.8 million.

Non-current liabilities increased by $2.4 million or 1.7% from $140.0 million to $142.4 million mainly due to addition of
notes payable of $100.0 million;

offset by a decrease in:

(i) long term loans by $21.4 million;
(ii) other liabilities by $1.0 million; and
(iii) notes payable of $75.0 million which is due on 1 April 2019.

(C) Cash Flow Statement

The Group generated net cash flow from operating activities of $35.2 million in 9M FY2018, demonstrating the
underlying strength of the core business to generate positive cash flow.

Net cash flow used in investing activities was $23.3 million in 9M FY2018, largely attributed to the purchase of
property, plant and equipment as part of capital expenditure, as well as the subscription of shares in Perennial HC
Holdings Pte. Ltd.

In 9M FY2018, following the successful issuance of the $100 million Medium Term Note, the Group repaid $72.5
million of long and short term loans. During the period, the Group also paid out $11.3 million in dividends. As a result,
net cash flow generated in financing activities in 9M FY2018 was $58.2 million.

Overall, the Group generated a net increase in cash and cash equivalents of $69.7 million in 9M FY2018, ending the
period with a cash and cash equivalents of $210.7 million.

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9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance
between it and the actual results

Not applicable.

10. A commentary at the date of the announcement of the significant trends and competitive conditions of
the industry in which the group operates and any known factors or events that may affect the group in the
next reporting period and the next 12 months

Year-to-date, the Group saw strong momentum in adding new growth frontiers to our core food and beverage (F&B)
businesses, with a series of joint ventures and partnerships summarized as follows.

18 January: Award of BreadTalk franchise right in Delhi and National Capital Region, India, to Bakekneads LLP, a
member of the Som Datt Group.

26 January: Official opening of our first Song Fa Bak Kut Teh outlet in Shanghai Jing An Kerry Centre.

12 March: 80-20 joint venture with renowned Taiwanese bakery brand, Wu Pao Chun Bakery to bring their products
into 4 major China cities – Beijing, Shanghai, Shenzhen and Guangzhou, with future plans to extend the JV into
Singapore and Hong Kong

23 March: 70-30 joint venture with PT. Pura Indah Berkat to bringToast Box brand into Indonesia

25 April: Launch of Una-Yu, an unagi don brand under 4orth Division as an outlet within our Shanghai Tower Food
Atrium

21 May: 90-10 joint venture with Shenzhen Pindao (“Pindao”) Food & Beverage Management Co Ltd to bring their
popular Nayuki and Tai Gai brands into Singapore and Thailand, with first right of refusal to operate in Malaysia,
Indonesia and the Philippines

8 June: Opening of our second Song Fa Bak Kut The outlet in Shanghai iAPM mall

27 June: 30-70 joint venture with our current Tibet Autonomous Region BreadTalk franchisee, Ge Ying, to re-enter
the Chongqing market

2 July: Added Pindao as a partner to our pre-existing joint venture with Song Fa Bak Kut Teh for Shenzhen and
Guangzhou via a 90-10 joint venture between BTG-Pindao Venture Pte. Ltd. and Song Fa Holdings Pte. Ltd. to
accelerate outlet expansion for Song Fa in South China

5 September: Opened first TaiGai specialty tea outlet at Serangoon NEX under our 90-10 joint venture with Pindao

As we head into the end of FY2018, the Group remains focused on the execution and delivery of our core and joint
venture businesses, including the much anticipated opening of Din Tai Fung in London, our first Wu Pao Chun outlet
in Shanghai, our first Song Fa Bak Kut Teh outlet in Beijing, as well as more direct operated restaurant concepts in
Thailand.

Our BTG-Shinmei procurement JV which has already commenced operations and we expect it to continue to help the
Group drive our cost of production lower going forward.

We may continue to expect short term earnings volatility in certain of our businesses as we strive to streamline the
operations in certain underperforming areas while we put in the necessary capital expenditure investment to position
the Group for longer term, sustainable growth.

15
11. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual
financial statements, with comparative information for the immediately preceding year

(a) By Business Segments

Real Estate
Bakery(1) Food Atrium Restaurant 4orth Investm ent Others (2) Elim ination Group
9M 2018 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Revenue
External sales 211,975 117,233 112,861 9,657 - 3,297 - 455,023
Inter-segment sales 1,195 2,425 - - - 445 (4,065) -
Total revenue 213,170 119,658 112,861 9,657 - 3,742 (4,065) 455,023
- - 0 0 (0) (0)

Results
Profit from operations 5,536 10,302 17,572 (1,278) 2,441 (8,693) (157) 25,723
Interest income 212 132 890 8 1,179 1,889 (1,791) 2,519
Interest expense (562) (222) (99) (41) (4,537) (3,637) 1,790 (7,308)
Share of associates' results (40) - - - - (707) - (747)
Share of joint ventures' (334) 233 - - - - - (101)
Segment profit 4,812 10,445 18,363 (1,311) (917) (11,148) (158) 20,086
Tax expense (1,297) (2,388) (3,545) (2) (649) (340) 40 (8,181)
Profit after tax 3,515 8,057 14,818 (1,313) (1,566) (11,488) (118) 11,905

Segment assets 162,937 128,936 135,464 50,143 239,513 166,616 (216,712) 666,897
Tax recoverable 252
Deferred tax assets 2,504
Total Assets 669,653

Segment liabilities 133,003 126,091 24,404 41,922 124,393 220,276 (227,379) 442,710
Tax payable 9,687
Deferred tax liabiities 4,275
Total liabilities 456,672

Investment in associate - - - - - 26,485 - 26,485

Investment in joint ventures 8,825 1,241 - - - - - 10,066
Additions to non-current
assets (3) 9,805 4,632 2,805 1,109 162 5,937 - 24,450
Depreciation & Amortisation 10,181 10,768 4,549 479 1,415 1,527 - 28,919
Other non-cash expenses 191 1,690 - 12 - 1,688 - 3,581

16
(a) By Business Segments (cont’d)
Real Estate
Bakery(1) Food Atrium Restaurant 4orth Investm ent Others (2) Elim ination Group
9M 2017 (Restated) $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Revenue
External sales 223,104 112,445 104,811 5,705 - 3,420 - 449,485
Inter-segment sales 1,094 1,657 - - - - (2,751) -
Total revenue 224,198 114,102 104,811 5,705 - 3,420 (2,751) 449,485

Results
Profit from operations 7,069 5,484 18,046 (391) 11,473 (8,336) (128) 33,217
Interest income 37 312 877 2 776 1,353 (2,220) 1,137
Interest expense (604) (408) - (9) (3,575) (1,284) 2,246 (3,634)
Share of associates' results - - - - - (671) - (671)
Share of joint ventures' 634 186 - - - - - 820
Segment prof it 7,136 5,574 18,923 (398) 8,674 (8,938) (102) 30,869
Tax expense (1,418) (1,563) (3,564) 60 (1,243) (545) 40 (8,233)
Profit af ter tax 5,718 4,011 15,359 (338) 7,431 (9,483) (62) 22,636

Segment assets 166,424 127,002 119,820 18,577 89,660 137,241 (150,385) 508,339
Def erred tax assets 2,423
Total Assets 510,762

Segment liabilities 131,873 127,507 26,012 21,717 25,017 171,238 (159,525) 343,839
Tax payable 8,493
Def erred tax liabiities 4,251
Total liabilities 356,583

Investment in associate - - - - - 28,631 - 28,631

Investment in joint ventures 8,813 843 - - - - - 9,656
Additions to non-current
assets (3) 6,552 5,133 3,712 1 - 2,471 - 17,869
Depreciation & Amortisation 11,659 12,196 4,213 645 1,469 1,485 - 31,667
Other non-cash expenses 1,527 910 13 321 - 278 - 3,049

17
(b) By Geographical Segments
External Sales Non-current Assets (3)
2018 2017 2018 2017
(Restated)
$'000 $'000 $'000 $'000
Singapore 265,038 254,273 139,352 121,085 57%
Mainland China 120,038 123,837 51,146 55,048 28%
Hong Kong 37,292 40,594 9,239 9,356 9%
Rest of the w orld 32,655 30,781 7,092 6,669 7%
455,023 449,485 206,829 192,158

(1) Bakery operations comprise operation of bakery retail outlets as w ell as that operated through franchising.
(2) The business segment “Others” comprises the corporate services, treasury functions, investment holding activities, and associated companies.
(3) Non-current assets information presented above consist of property, plant and equipment, investment property and intangible assets.

12.) Dividend

(a) Current Financial Period Reported On

Any dividend recommended for the current financial period reported on? No.

(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? Yes.

Nam e of dividend Interim

Dividend type Cash

Dividend amount per ordinary
0.5 Singapore cent
share as adjusted f or share
(tax exempt one-tier)
split

(c) Date payable

Not applicable.

(d) Books closure date

Not applicable.

13. If no dividend has been declared/recommended, a statement to that effect

Not applicable.

18
14. If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such
transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect

Nam e of Interested Person Aggregate value ($'000) of all Aggregate value of all IPTs conducted
IPTs during the financial year during the financial year under review
under review under shareholders' m andate
pursuant to Rule 920 (excluding
transactions less than S$100,000)
(1) Sky One Art Investment Pte Ltd
314
- Purchase of artw ork Not applicable - the Group does not have a
(2) Kung Fu Kitchen shareholders' mandate under Rule 920
266
- Food court rental income/miscellaneous charges

15. Negative confirmation by the board pursuant to Rule 705(5) of the SGX Listing Manual

To the best knowledge of the Board of Directors, nothing material has come to the attention of the Board of Directors
which may render the financial results for the third quarter and period ended 30 September 2018 of the Group and the
Company to be false or misleading in any material aspect.

16. Confirmation that the issuer has procured undertakings from all its directors and executive officers pursuant
to Rule 720(1) of the SGX Listing Manual

The Company confirms that it has procured undertakings from all its Directors and Executive Officers (in the format set
out in Appendix 7.7) pursuant to Rule 720(1) of the SGX Listing Manual.

BY ORDER OF THE BOARD

Ms. Shirley Tan Sey Liy
Company Secretary
5 November 2018

19