RAFFLES EDUCATION LIMITED INTERIM

Income Statement

1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year (Cont’d) NOTES TO THE Group UNAUDITED FULL YEAR CONSOLIDATED Increase/ STATEMENT OF COMPREHENSIVE INCOME FOR THE 2019 2018 (Decrease) FINANCIAL YEAR ENDED 30 JUNE $’000 $’000 % Interest income1 621 1,178 (47) Government grant1 67 62 8 Gain on disposal of property, plant and equipment1 16 65 (75) Gain on disposal of subsidiary1 37,410 - NM Foreign exchange gain1 6,691 2,745 144 Foreign exchange loss2 (3,746) (5,442) (31) Bad trade receivables written off2 4 (246) (155) 59 Property, plant and equipment written off2 4 (902) (38) 2,274 Loss on disposal of property, plant and equipment2 4 (500) (45) 1,011 Rental expenses2 4 (5,740) (6,349) (10) Share-based payment3 131 - NM Overprovision of income tax expense in prior periods 18,092 60 30,053 NM – Not meaningful 1 included in other operating income 2 included in other operating expenses 3 included in personnel expenses 4 included in non-recurring costs from revamp and closure of colleges Group 2019 2018 Non-recurring costs from revamp and closure of colleges $’000 $’000 Refund to students 84 - Personnel costs 325 - Rental expenses 183 Bad trade receivables written off 216 - Property, plant and equipment written off 902 - Loss on disposal of property, plant and equipment 360 - Intangible assets written off 214 - Impairment of goodwill 6,140 2,360 Other operating expenses 140 - Total 8,564 2,360 Raffles Education Corporation Limited Page 2 of 22 1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year (Cont’d) We have included Adjusted EBITDA in this results announcement because it can provide a useful measure for period-to-period comparisons of our core business. Net fair value gain on investment properties and gain on disposal of investment properties were included in the Adjusted EBITDA as the real estate investment and development segment is part of our core business. Group 2019 2018 ADJUSTED EBITDA $’000 $’000 Profit after tax 41,107 22,642 Add/(less): Gain on disposal of subsidiary (37,410) - Government grant (67) (62) Impairment of goodwill 6,140 2,360 Finance costs 16,801 15,508 Income tax (credit)/expenses (13,051) 19,779 Depreciation and amortisation 13,829 12,3