Cna Group 1q2009 Results Release

MEDIA RELEASE

CNA 1Q 2009 Revenue Rises 61.3% To S$32.8 Million Driven By Middle East Operations • Group profit from operations rises to S$1.7 million against a loss of S$0.5 million in 1Q 2008 as ongoing long-term core business strategies continue to pay off • 1Q 2009 net profit attributable to shareholders falls 51.8% to S$0.9 million due to reduction in bottomline contribution by associate Standard Water Limited whose performance was impacted mainly by interest provision for Standard Chartered IL&FS Asia Infrastructure Growth Fund convertible bond and less buoyant activities in the construction of Build, Operate and Transfer projects amidst prevailing weak economic environment • Outlook: With a strong order backlog of S$127 million as at 31 March 2009, CNA’s core business in Middle East is expected to continue to lead topline growth while operations in China, Singapore, Vietnam and India should maintain their respective growth momentum S$ (Million)

1Q 2009

1Q 2008

% Change

Revenue

32,842

20,366

61.3

Profit/(loss) from operations

1,660

(456)

Nm

Net profit attributable to shareholders

853

1,769

(51.8)

Cash and cash equivalents

17,557

11,952

(46.9)

Basic earnings per share (S cents)

0.45

0.93

(51.6)

Net asset value per share (S cents)

31.87

30.57

4.3%

SINGAPORE – 13 May 2009 – SGX Mainboard-listed CNA Group Ltd. (“CNA” or “the Group”), an award-winning enabler of intelligent buildings and facilities, announced today that Group revenue for the first three months ended 31 March 2009 (“1Q 2009”) surged 61.3% to S$32.8 million from S$20.3 million in 1Q 2008 driven by its core business operations in the Middle East. CNA GROUP LTD 28 Kaki Bukit Crescent, Kaki Bukit Techpark 1, Singapore 416259 Tel: (65) 6842 9300 Fax: (65) 6842 9606 http://www.cna.com.sg Co Reg No 199000449K

Accordingly, CNA’s Middle East topline contribution accelerated to 61.3% or S$20.1 million of 1Q 2009 revenue from a corresponding 51.3% in 1Q 2008 as the Group reaped better returns from a higher stage of completion of the prestigious Dubai Nad Al Sheba racecourse and other Middle East projects. At the same time, the Group’s core business operations in China, Singapore Vietnam and India maintained their growth momentum in existing and new projects secured during the period under review. Concurrently, CNA also reported S$1.7 million as 1Q 2009 profit from operations, almost 78.1% of that in FY2008, as turnover rose and gross margins on most projects improved. This performance despite extremely challenging operating conditions reflects the efficacy of the Group’s ongoing long-term core business strategies that continue to pay off. Commenting on 1Q 2009 performance, Mr Michael Ong, CNA’s Group President and CEO said, “CNA’s core business performance during one of the most challenging economic down cycles we have seen demonstrates that our efforts over the last few years are coming on track.” “It has always been our approach to seek out projects that are with governmentlinked and very large companies and all our ongoing implementations are of that nature. This minimises the impact of the ensuing global financial crisis on them and enables our core business to deliver the performance that our shareholders expect,” he added. However in 1Q 2009, the Group’s net profit attributable to shareholders declined by 51.8% to S$0.9 million from S$1.8 million mainly due to the reduction in bottomline contribution by the Group’s 49.9%-held associate Standard Water Limited (“SWL”). SWL’s contribution to CNA’s net profit for the period decreased by 96.2% to S$ 0.2 million in 1Q 2009 from S$2.6 million. During the quarter under review, SWL’s performance was impacted mainly by S$2.4 million (CNA’s share of this was S$1.2 million) interest provision for the Standard Chartered IL&FS Asia Infrastructure Growth Fund convertible bond. Additionally, SWL’s operations in the Build Operate and Transfer projects were less buoyant amidst the prevailing weak economic environment.

CNA GROUP LTD 28 Kaki Bukit Crescent, Kaki Bukit Techpark 1, Singapore 416259 Tel: (65) 6842 9300 Fax: (65) 6842 9606 http://www.cna.com.sg Co Reg No 199000449K

Commenting on outlook, Mr Ong said, “Our over-riding objective in FY2009 is to continue to manage our ongoing long-term growth initiatives. We believe that these have established a strong business foundation and we can continue to leverage on these when markets eventually recover.” Most recently in April 2009, CNA’s core business strategy was enhanced by S$9.3 million worth of multinational contracts in Vietnam, a significant win in that country which is quickly emerging as a third pillar of its overseas growth after the Middle East and China. As at 31st March 2009, CNA’s core business has a strong order backlog of S$127.0 million across Singapore, China, the Middle East, Vietnam and India. “Given this for rest of FY2009, we believe that CNA’s core business in Middle East will continue to lead topline growth while maintaining its momentum in China, Singapore, Vietnam and India,” concluded Mr Ong. Similarly, given the China government’s ongoing focus on wastewater treatment we expect to continue benefitting from our investments in Standard Water Limited and Xiamen Leccan Technology Co., Ltd.

~ end of release ~ About CNA Group Ltd. CNA Group Ltd. (“CNA”) is an award-winning specialist in the provision, design, implementation and maintenance of advanced integrated control and automation systems and IT solutions that enable intelligent buildings and facilities. In late May 2006, CNA added a new dimension to its business strategy when it acquired a stake in Beijing Herocan Environmental Engineering Tech Co. Ltd. (“Herocan”) a leading one-stop provider of water and waste treatment solutions in China. The move which allowed the Group to springboard into the fast-growing water and environmental sector in China is in line with CNA’s efforts to expand into or invest in businesses with strong growth potential. CNA’s associate level stake in Herocan is held through Standard Water Limited formerly known as China Water Holdings Limited Similarly, in October 2008, CNA acquired a 28%-stake in Xiamen Leccan Technology Co., Ltd. (“Leccan”) based in Xiamen City, Fujian Province in China. Leccan specialises in the design, construction, installation and maintenance of wastewater treatment plants for the textile, printing and electroplating industries. CNA’s strength is in combining its domain knowledge and expertise with its proprietary SIRIUS™ system technology to build high-level and fully integrated Intelligent Building Management Systems (“IBMS”) and Intelligent Facility Management Systems (“IFMS”) that are able to integrate,

CNA GROUP LTD 28 Kaki Bukit Crescent, Kaki Bukit Techpark 1, Singapore 416259 Tel: (65) 6842 9300 Fax: (65) 6842 9606 http://www.cna.com.sg Co Reg No 199000449K

monitor and control a diverse range of mechanical, electrical, security and climate control systems within a building or facility. Headquartered in Singapore, CNA has a direct presence in China, Vietnam and the Middle East, serving an impressive list of customers in Singapore, Malaysia, Myanmar, Philippines, Thailand, India, China, Dubai, Qatar and Oman.

For more information, please visit: www.cna.com.sg Issued of behalf of the Company by: WeR1 Consultants Pte Ltd Ms Mona Leong Principal Consultant Email:[email protected] Tel: +65 6737 4844 Fax: +65 6737 4944 Ms. Reshma Jain Consultant Email: [email protected]

CNA GROUP LTD 28 Kaki Bukit Crescent, Kaki Bukit Techpark 1, Singapore 416259 Tel: (65) 6842 9300 Fax: (65) 6842 9606 http://www.cna.com.sg Co Reg No 199000449K