LKL International Berhad

Corporate Presentation

April 2020

IR Adviser

Financial Highlights

Growth Strategies

Investment Merits

Corporate Profile

Corporate Profile

4

LKL is an established provider of medical and healthcare furniture inMalaysia and across the globe…

Overview

LKL International Berhad established

since 1993Leading manufacturer and distributor of medical and healthcare beds,

peripherals, accessories, and devices

Wide portfolio of customers Supply to numerous public and private institutions in the healthcare

services industry globally

Experienced R&D team Equipped with latest technology; manufacturing processes certified to

international standards

One of Malaysia’s largest manufacturersComprehensive range of products

Exports to over 45 countries

4 manufacturing facilities located in Seri

Kembangan, equipped with latest technology➢ Automated robotic welding

➢ CAD software applications for 2D and 3D product

design

➢ CAM software

➢ CNC machinery

5

Commenced with manufacturing and distribution of medical beds andperipherals…

Business Model

Manufacturing

(70.6% of 9M20 revenue)Medical and healthcare beds

Medical peripherals and accessories

Trading and Distribution

(29.4% of 9M20 revenue)Medical peripherals and accessories

Medical devices

6

Extensive portfolio of high-quality and competitively priced medical bedssuited for various healthcare settings…

Manufacturing Segment (Medical & Healthcare Beds)

Hospital ICU/CCU

Electrical BedHospital Electrical Bed Hospital Hydraulic Bed

Manual Crank BedDelivery Bed

Wide range of ready-made and customised medical peripherals &accessories to support evolving customer needs…

Manufacturing and Trading Segment (Medical Peripherals & Accessories)

Carts & Trolley Patient Room

Furniture

Nursery Equipment

Instrument Trolley

Medical Chair Miscellaneous

Hospital Equipment

Curtain TrackA&E Patient Transport

Trolley

Examination Table

IV

Dressing

Wound

Dressing

Disposable

Probe Cover

Retention

Tape

Note: Dynafix Plus is LKL’s in-house brand, which is distributed by B.Braun

Medical Supplies Sdn Bhd since February 2019

7

Surgical Light Ultrasound

SystemOperating Table

Note: BenQ products added since March 2019

8

Our clients extend beyond the boundaries of home to overseas…

Customer Base

Asia

Bangladesh

Brunei

Cambodia

Hong Kong

India

Indonesia

Jordan

Kuwait

Laos

Maldives

Myanmar

Oman

Pakistan

Qatar

Saudi Arabia

Singapore

Sri Lanka

Syria

Thailand

UAE

Vietnam

Austria

Finland

Germany

Netherlands

Poland

Switzerland

United

Kingdom

Europe

Costa Rica

Central/South

America

North

AmericaMexico

Africa

Botswana

Ghana

Kenya

Mauritius

MozambiqueOceania

Australia

Malaysia

Malaysia 77.2% of 9M20 revenue

Overseas 22.8% of 9M20 revenue

9

Long-term relationships built on dedication to quality and providingsuperior solutions for all customers’ evolving requirements...

Competitive Advantages

Long-term relationships

• Long track record with local and internationalestablished hospitals & medical centres

• Repeat orders from existing customers

Technical expertise

• Design and manufacturing process complieswith international standards

• Able to manufacture customized products,based on customer specifications

• Technologically advanced; equipped withCAD and CAM capabilities

Consistent after-sales service

• Reliable after-sales services

Diversified range of products

• Comprehensive product range allows LKL tobe a one-stop solutions provider

• Also enables Group to diversify customerportfolio to increase long term sustainability

Experienced & capable management team...

Key Management 10

Lim Kon LianManaging Director

▪ Co-founder of LKL with 37 years experience in the healthcare furniture & equipment industry

▪ Responsible for strategic oversight and operations

Mok Mei LanExecutive Director

▪ Co-founder of LKL with 30 years experience in the healthcare furniture & equipment industry

▪ Responsible for overseeing procurement functions

▪ Bachelor of Engineering in Mechatronic Engineering from Staffordshire University; garnered

experience as R&D engineer in LKL

▪ Responsible for assisting the Managing Director in overall operations, with special focus on R&D

Lim Ming ChangChief Executive Director

(LKL Advance Metaltech Sdn. Bhd.)

▪ Bachelor of Science in Computing from Staffordshire University; experience as IT executive and

quality management representative

▪ Responsible for overseeing manufacturing operations, and IT & telecommunications functions

▪ Fellow member of the Association of Chartered Certified Accountants, member of the Malaysian

Institute of Accountants; 20 years experience in finance & accounting

▪ Responsible for overseeing finance functions

▪ Extensive experience in sales; instrumental in delivering LKL products to hospitals

▪ Responsible for managing overall marketing and business development activities of LKL

Lim Pak HongExecutive Director

Wee Chuen LiiFinancial Contoller

Lee Kah EarngSales Director

Alan HooBusiness Development Director

▪ More than 20 years of experience within the medical industry

▪ Responsible for overseeing the company’s business development activities in trading and OEM

products, building relationships and undertaking external strategic planning

Growth Strategies

12

Helping the local government combat the COVID-19 pandemic…

NEW CONTRACT

On 25 March 2020, LKL announced that it would supply

RM6.6 million worth of personal protective equipment (PPE)

to the Sarawak State Government for onward distribution to

public hospitals under the Sarawak State Health Department

This comes at a timely moment for Sarawak, with the state

facing an increasing number of infections and deaths

Government has pledged RM500

million allocation to Health Ministry

nationwide

To supply PPE to public hospitals in

Sarawak

Procurement of ventilators, PPE, ICU equipment and

laboratories equipment

OT Hood

Jumpsuit

Plastic Apron Long Sleeves

Boot Cover

Shoe Cover

OT Cap

Participating in more international

trade exhibitions to build greater

awareness for the LKL brand

Constantly identifying potential new

distributors and agents from other

countries to capitalise on

opportunities in new geographical

markets

13GROWTH STRATEGIES

Constantly looking for opportunities to

integrate high-value medical products

into current portfolio to improve product

mix

Entered into MoU with Shin Sung TK

Co. Ltd to cooperate on the

development of iRinger, an advanced

IoT medical device used for smart

infusion monitoring system

Broadening product range Entering new export markets

Expanding product portfolio to include more high-value medical products andequipment… aiming to enter new export market

Handling urgent enquiries

efficiently

Immediate need for more medical

equipment due to the COVID-19

outbreak has led to a huge upswing in

demand and a rise in enquiries

In a state of readiness to ensure that

enquiries can be urgently addressed

and translated into swift deliveries to

the respective medical institutions

iRinger

Financial Highlights

15

9M20 performance indicating that profitability is back on track…

FINANCIAL HIGHLIGHTS

33.9

29

.7

37

.2

28

.3

33

.5

FY17 FY18 FY19 9M19 9M20

9M20 Segment Performance

Medical and Healthcare Beds

+7.3%

yoy

Revenue

RM9.9 mil

Medical Peripherals and

Accessories

+32.8%

yoy

Revenue

RM20.4 mil

Medical Devices (new)

Revenue

RM3.2 mil

Group Revenue (RM’ mil)

-14.5%

yoy

6.1

(1.2

)

(2.9

)

0.3 2

.04.5

(1.1

)

(2.5

) 0.3

1.2

FY17 FY18 FY19 9M19 9M20

PBT

PATMI

Group PBT & PATMI (RM’ mil)

Rest of Asia

11.2%

Malaysia

77.2%

Geographical Composition

Europe

& Others

11.6% 9M20

Revenue

Local Sales

+10.8%

yoy

Revenue

RM25.9 mil

Export Sales

+53.1%

yoy

Revenue

RM7.6 mil

By Product By Location

72.3

72.4

70.0

71.2

69.5

9.1 8.6

6.8

7.3

7.1

23.7

14.3

12.4

12.8

13.3

59.8

58.7

56.2

58.9

57.4

-0.2

-0.1 -0.1 -0.1 -0.1

FY17 FY18 FY19 9M19 9M20

Total Assets Total Borrowings Cash and Equivalents**

Shareholders' Equity Net Gearing*

16

Maintained balance sheet strength with net cash position…

FINANCIAL HIGHLIGHTS (CONT’D)

* Dotted line denotes neutral net gearing level

** Includes cash and bank balances, as well as fixed deposits

with licensed banks

Investment Merits

LKL

KLCI

18INVESTMENT MERITS & VALUATION

Led by skilled personnel and modern technology… a market leader in supplying top quality products in the healthcare industry

Leading one-stop solutions provider and

the only Bursa listed

manufacturer/distributor of medical

equipment for public and

private hospitals/medical

centres in Malaysia

Experienced management

team; continuous

expansion of solutions and products to enhance

competitive edge

Well-placed to address urgent

enquiries and serve medical institutions in

the ongoing battle against the COVID-19

pandemic

Export track record to >45

countries globally;

compliance with

international requirements e.g. ISO, CE,

and FDA

Exposure to resilient

growth in global

healthcare sector and

rising healthcare spending

➢ Key Merits ➢ Valuation

Share Price (RM) 0.240

Market Cap (RM 'mil) 102.9

Annualised PE (x) 66.0

Price to Book 1.8

Valuations @ 30 Mar 2020

Share Price Performance(29 March 2019 - 30 March 2020)

Thank You

IR Contacts:

Terence Loo terence@aquilas.com.my +6012-629 5618

BLOOMBERG : LKLI:MK

REUTERS: LKLI.KL

BURSA MALAYSIA: LKL

Appendix

21

Track record of over 25 years as a reliable supplier of quality products...achieved various certificates & awards

Key Milestones

1993

▪ Incorporated

LKL Advance

Metaltech

1994

▪ LKL Advance Metaltech

acquired a factory cum office

building in Taman Universiti

Indah, Seri Kembangan

1996

▪ Commenced intended

operations as a manufacturer

& trader of hospital furniture,

accessories , and steel and

wooden furniture and fittings

1997

▪ Expanded factory through

the acquisition of an adjacent

unit to the factory cum office

building in Taman Universiti

Indah, Seri Kembangan

▪ Implemented automation of

welding activities through the

installation of automated

robotic welding machinery

2001

▪ Received ISO

9001:2000

certification

(updated to ISO

9001:2008

certification)

2005

▪ Received EN ISO 13485:2003

certification (updated to EN

ISO 13485:2012 certification)

▪ Awarded “Enterprise 50” by

SME Corporation Malaysia and

Deloitte Malaysia

2007

▪ Awarded “MMEBA”

under the Platinum

Brand Award category

▪ Awarded “MMEBA”

under the Corporate

Branding Export Market

Gold Award category

2008

▪ Moved head office

and manufacturing

plant to Factory Lot

No. 3

2009

▪ Granted certificate

of CE registration

since 2009 by

Obelis s.a.

2011

▪ Appointed under EPP13 (medical hardware

and furniture cluster) of ETP to expand

manufacturing premises, workforce and

manufacturing capacity

▪ Awarded “Golden Bull Award 2011” under

the Outstanding SME category

▪ Awarded “SMEs BestBrands Award” under

the Corporate Branding Awards category

▪ Granted certificate of CE registration since

2009 by Obelis s.a.

2012

▪ Commenced operations in

expanded manufacturing

facility at Factory Lot No. 1

▪ Awarded “1Malaysia

Enterprise Award“ under the

1Malaysia Lifecare category

2015

▪ Acquired Factory Lot No. 15

located behind current premises

▪ Rented 4 nearby shoplot

factories to relocate some

assembly and epoxy powder

coating processes

▪ Awarded Golden Eagle Award

2015 under the Malaysia 100

Excellent Enterprises category

2016

▪ Listed on the ACE

Market of Bursa

Malaysia Securities

Berhad

2019

▪ Appointed B.Braun as exclusive

distributor of Dynafix Plus

▪ Secured distribution rights for

selected BenQ products

Trading of hospital

furniture, laboratory

furniture, medical

equipment and accessories

Manufacturing and

distribution of

medical/healthcare beds,

peripherals, accessories

and medical devices

22

Organized corporate structure to drive various business units…

Corporate Structure

LKL Advance

Metaltech Sdn Bhd

LKL International Berhad

Medik Gen

Sdn Bhd

100% 100%

TMI Medik Group

Sdn Bhd

70%1

Note:11 % held via LKL Advance Metaltech Sdn Bhd and 69% held via Medik Gen Sdn Bhd.

23HEALTHCARE SECTOR FUNDING

Total Healthcare Sector Budget

Allocations

Overall higher allocation of funds for healthcare sector to improve quality of medicalservices and successfully combat COVID-10…

Budget 2020

RM30.6

billion

Budget 2019

RM28.7 billion

Breakdown of main funding areas in

Budget 2020

RM1.6 billion

Construction of new hospitals and upgrading

of existing ones

RM319 million

Construction and upgrading of health clinics

RM227 million

Upgrading medical

equipment

RM95 million

Renovation of medical

infrastructure and facilities

Immediate additional funding for the Health

Ministry to battle COVID-19:

RM500 million: Procurement of ventilators, personal protective equipment

(PPE), as well as equipment and facilities for intensive

care unit (ICU) and Covid-19 screening laboratories

Significant investment required from both public

and private healthcare providers in Malaysia to

reach international standard

24INDUSTRY HIGHLIGHTS

2.50.5 1.9 2.4 2.6

InternationalStandard

Philippines Malaysia Singapore Vietnam

Hospital beds per 1,000 population3

Ageing Population

20% of Malaysian population will be over 60 years old by 20502

Rising Affluence

To be accompanied by demand for better healthcare services

3 Country data from World Health Organization4 New Straits Times, August 2016

Factors driving healthcare sector’s

long-term CAPEX

Hospital bed-to-population needs to

increase to regional standards

Growing Population

Malaysia’s population projected to rise to 41.5 million by 20401

1 Department of Statistics Malaysia, November 20162 Global AgeWatch Index 2015

4

Malaysia healthcare sector’s long-term CAPEX expected to trend upwards…