datuk dr mohd iszlan ismail

A program of setting up a timber flooring and wood related industry supply chain program in Malaysia

In 3 years, Create 4’000 employment opportunitiesin the region

A area to gather an integrating modern industries, commercials and housing

Achieving an average annual production output of 10 billion

Keywords: Whole Timber Industry Chain， Regional Economic Development，Mass Industrial Group Corporation

Strategic LocationMalaysia is located in the heart of ASEAN and offers a getaway to regional markets of over 600 million people. Majorbusiness centers in Asia such as Tokyo, Beijing, Hong Kong, Shanghai and Seoul are reachable from Kuala Lumpur within acouple of hours.

InfrastructureThe high-speed rail project connecting Singapore and Kuala Lumpur is one of the most looked-after projects which will have seven stops in Malaysia. World class airport (KLIA) and the world’s 12th busiest sea port (Port Klang) provide great connectivity between Greater Kuala Lumpur and the rest of the region and the world. Malaysia is expected to reap the benefits of China’s One Belt One Road (OBOR) initiative. With the building massive infrastructure of One Belt One Road (OBOR), which helps Malaysia to stay focus on connectivity and cooperation among various countries. The new proposed trade route is expected to bring great economic growth opportunities to the region.

Human ResourcesMalaysian workforce is young and educated many of whom have a good command over 3 major languages, BahasaMalaysia, Mandarin and English language. The quality and adaptability of the workforce are quite commendable. TheMalaysian government is fully committed to meet the aspirations of the people by focusing on improving the inclusivenesstowards an equitable society, improving the wellbeing of all, speeding up human capital development through education-related reforms.

Why Malaysia

1. Our vision : To become the International pioneer of the Timber flooring Industry that’s bring in the specialist and oriented investor or even business partner from worldwide to Malaysia

2. 借鉴高速发展模式：投资 +杠杆 +产业链规划

3. 全球木材加工业的迁移：从中国的江苏崔桥乡迁址南亚

(3-1) 全球地板加工业的规模与趋势(3-2)中国的市场环境变迁

4. 与当地政府的协作形式：分层投资与共建产业园

5. 风险把控的各要素：里程碑模式控制风险

6. 收益预估与投资回报：5年上市的愿景规划

7. 核心团队构成：成功案例丰富的跨境组合

Index Strictly Confidential

Our Vision : To Orient Investors and Business Partners from Worldwide to Malaysia

Map of Timber & Flooring Park

Phase 3 (2023～) : Nanyang Malaysia Sdn Bhd R&D Centre

- Planning : 20 hm²

- Investment : RM2bil

- Production output value : approximately RM3bn per annum

- Production line : 8 – 10 3rd generation production line

- Infrastructure : High Tech Research and Development Centre

- Infrastructure : Luxury Elite Housing and Commercial Amenities

Packages

- Job opportunities : Create 1500 job opportunities

Phase 1 (2020～ 2021) : Setup a timber flooring factory

- Planning : 5 hm²

- Investment : RM100mil

- Production output value : approximately RM200mn per annum

- Production line : 3-5 SPC production line

- Infrastructure : Production and processing workshop

- Infrastructure : Elite Apartment

- Job opportunities : create 500 job opportunities

Phase 2 (2021～ 2023) : an integrated timber industrial township

- Planning :15 hm²

- Investment : RM700mil

- Production output value : approximately RM900mn per annum

- Production line : 10 complete production line

- Infrastructure : Timber Manufacturing Plant

- Infrastructure : Elite Cluster Housing Development andCommercial Amenities package

- Job opportunities : Create 2000 job opportunities


2. Rapid Development model : Investment + leverage + Industrial Chain Planning3. 全球木材加工业的迁移：从中国的江苏崔桥乡迁址南亚

(3-1) 全球地板加工业的规模与趋势(3-2)中国的市场环境变迁

4. 与当地政府的协作形式：分层投资与共建产业园

5. 风险把控的各要素：里程碑模式控制风险

Strictly ConfidentialIndex

Rapid Development model : Investment + leverage + Industrial Chain Planning

Traditional Business Models ：

• Investment Fund Only• Individual Market Competition• Government Assistance Policy• Fragmentation Land Development• Lack of Integrity

China’s Expansion Models ：

• Phases of Investment Project• Broking International Competitors• Collaborate with Local Government• Comprehensive Land Development• Collaborative Industry Chain

Smaller Scale

V.S.

Development Stagnation

Investment Leverage Development

Essential Elements

+ +✓ Investors✓ Junior Tranche✓ Risky

✓ Local Government✓ Senior Tranche✓ Stable

✓ Investor & Local Government✓ Sinergy

High Risks

Little Effect

Low Efficiency

Poor Prospect

Economic Recession

Bigger Scale

Low Risks

Good Prospect

Quick Results

High Efficiency


2. Rapid Development model : Investment + leverage + Industrial Chain Planning

3. Diversification of the Worldwide wood processing : Moved The Timber Flooring from Jiangsu, China to Nanyang Sdn Bhd in Malaysia.

(3-1) The scale and the trend of the International Timber Flooring Industry(3-2) The Changed of China Industrial Environmental factor


Market Share at the end of 2011

China Other Countr ies

Market Share at the end of 2019

China Other Countr ies

-10%

0%

10%

20%

30%

40%

50%

60%

70%

0

5

10

15

20

25

30

35

40

45

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020est.

2021est.

2022est.

2023est.

bn $ China Other Countries

Growth Rate (China) Growth Rate (Other Countries)

Changes of timber manufactural

market share during past 8 years

evidence a trend from China to

other countries.

Annually Global Production and Growth of Timber Flooring Industry From the perspective of production output value, the global timber flooring demand has increased mainly due to the increased of population. The China market has slightly increased the production output, however the global demand still not as fast compared to the overall global market growth. Therefore, it has created a rare growth opportunities to others countries.

The opportunities of South East Asia and Nanyang Sdn Bhd ：

◆ China has ended a 15-year period of rapid growth, and now is entering a credit tightening period.

◆ High labour and logistics cost has make China no longer an advantage to operate wood processing industry in China.

◆ Timber price has increased yearly in China, which creating an opportunities for the timber processing industry to move production out from China

◆ Then demand of SPC in Europe and America market has been taking over from China

Producer Price Index:Lumber Products (NSA)

Cuiqiao, China is a main flooring manufacturing township (Supplying more than 70% of flooring products in worldwide). We are offering the same products quality and technology, and transfer its market share to Malaysia.

A Trend : The Timber Flooring Industry is moving from China to Nanyang Sdn Bhd in Malaysia





4. Collaborative Behavior and the Performance of Government: Scheduled Payment and Industrial Township Development


Structural Investment & Local Government Collaborative Model

Local Government Collaborative Model

Step 1. Work together with local government to develop a plan for creating an integrated industrial township.

Step 2. Based on the landing plan, the government to plan the first phase of factory land planning.

Step 3. Either government or investor to appoint the developers for this development project.

Step 4. We sign investment agreement with local government, and establish a time frame ( milestones)

Step 5. The government to allocate the land, and we to begin the first investment to build a factory

Step 6. Government to coordinate resources such as participation of banks (leverage) to expand revenue

Step 7. Once completion of first phase development, the government obtained a factory share option inaccordance with the agreement

Vision of Timber Flooring Park Malaysia

Cooperation

Local

Government

Investors

Non-

cooperation

CooperationNon-

cooperation

Risk, Return(High, Low)(Negative, Negative)

Risk, Return(High, High)(Negative, Positive)

Risk, Return(Low, Low)(Positive, Negative)

Risk, Return(Low, High)(Positive, Positive)

With minor involvement and participation of government, we as a investor can only be just setting up a factory with normal operation. Government does not participate in development, although this can bring a lower risk, but the returns are relatively small to both parties.

In this scenario, although government is leading the investment, but its does not involve in the market. This might caused a high risk of project failure. The government will completely facing the high risk if there is no strong investors involved.

The investors to bring in brand, operations, capital, markets and etc. The government to coordinate necessary resources, joint effort to develop the entire industrial township. This can avoid risks, and able to accomplish extremely high returns to both government and investors achieving a true win-win situation.

Junior Tranche(High risk, 20 nm RM)

Senior Tranche(Low risk, 80 nm RM)

At the first equity investment round, we invest 20 nm RM in 2-3 SPC product lines.

Local banks start asset-backed investment when mortgage on land and factories have been accepted.

Structural Investment






5. Assessment of control risk : Manage Time in Risk Management


Risk Management：Milestones for Risk Management

Milestones and Risk Management Processes

Hedging any Respectable Risks

Investors to coordinate the sales channels of timber products, to obtain sales agreement (Avoiding market sales risks)

Control operating costs by (Avoiding operational risks)

A transition of government and investor of land use right, ensuring factory building is according to planned. (Avoiding price fluctuation)

Investors start the first round of equity investment

After ensuring production, operation and land development, then execute the leverage investment to expand the return. Every activities shall follow according to the milestone. (Avoiding investment risks)

Investors control the manufacturing process to ensure high efficiency and productivity of production (Avoiding risks in production)

Develop a management system to ensure workers are sufficient for production (Avoiding risks of business activities)

After ensuring production, operation and land development, then execute the leverage investment to expand the return. Every activities shall follow according to the milestone. (Avoiding investment risks)







6. Return Of Investment (ROI) Estimation Planning : Targeted for the company to obtain listing in Malaysia Within 5 Years.


Return Of Investment (ROI) Estimation and a 5-year IPO Plan

RM (mn) Initial Invst. Invst. Div. Div. Div. Capital Gain

Cash Flows -20 -40 12 11 23 243

IRR = 49%

RM (mn) Initial Invst. Invst. Inst + Tax Inst + Tax Inst + Tax Option Gain

Cash Flows -80 -160 13 13 21 362

IRR = 14%

Profit forecast of wood processing table

Forecast of Investors’ Return Assuming:

P/E 15x; 20% shares Sold after IPO

Forecast of Governmental Return Assuming:

P/E 15x; 15% Equity Option Sold after IPO

SPC flooring has become a mainstream demand in Europe and America market. In total building 30 production line. Based on 85% capacity calculation: Start from 2022, invest in research and development Every production line produce 2 million square meter per annum.

Based on 10 years average depreciation, the salve value is Zero

Besides timber flooring, it can also attract or invite China timber furniture manufacturer to invest into this industrial township.



3. Diversification of the Worldwide wood processing : Moved The Timber Flooring from Jiangsu, China to Nanyang Wood Sdn Bhd in Malaysia.




6. Return Of Investment (ROI) Estimation Planning : Targeted for the company to obtain listing in Malaysia Within 5 Years.

7. Nanyang Wood Sdn Bhd Core team member: Experienced and Dedicated Team members


Nanyang Wood Sdn Bhd Core team member: Experienced and Dedicated Team members

Roger

Joseph Yi Wang

Ong CH

A professional business leader with 20 years of progressive operations experience in product design and manufacturing organization. Accomplished Executive with domestic and international experience in operation, P&L, multichannel products distribution and marketing.

Over 25 years experience in expertly managed the life-cycle of product development projects while responding to constant changes in priorities. Provided expert advice to enhance competencies in managing assigned projects and to maximize the performance level.

Marry

A successful entrepreneur with extensive domestic and international investment and structural finance experience.

A conscientious and professional individual with extensive experience in business development and start up in the global market place. Dynamic sales ethic and strong leadership and communication skills with more than 15 years of experience.

KT Tai

Over 15 years hand-on experience in investment banking field. Coordinate a team approach toward the management of 100 billion CNY of funds and assets for high net worth accounts.

Strictly ConfidentialDisclaimer

This presentation (the “Presentation”) is being furnished on a confidential basis for the purpose of providing certain information related to us (or “We”). This Presentation is

for informational purposes only summarizing the private equity and investment market, and is not intended to introduce any particular fund or any securities. This

Presentation does not, and shall not be interpreted to, constitute an offer to sell to, or solicitation of an offer to purchase from, any person or entity in any jurisdiction, and is

not intended to be provided to and may not be used by any party in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules or

regulations. No person has been authorized to make any statement other than as set forth in this Presentation, and any such statements, if made, may not be relied upon.

This Presentation contains highly confidential information regarding prior investments of funds managed by us. By accepting delivery, continued possession or use of this

Presentation, the recipient agrees that it will and will cause its employees, representatives, agents and advisors to (i) keep confidential all the information contained herein,

as well as any information derived from the information contained herein (collectively “Confidential Information”) and not disclose any such Confidential Information to any

other person except as required by law or otherwise permitted hereunder and (ii) not use any of the Confidential Information for any purpose other than for informational and

discussion purposes relating to us.

In considering the performance information contained in this Presentation, the recipient should bear in mind that past performance is not necessarily indicative of future

results. There can be no assurance any us sponsored fund will achieve comparable results or that the returns generated by any such fund will equal or exceed those of

other funds managed by us or that any such fund will be able to implement its investment strategies and investment approaches or achieve its investment objectives. As

used in this Presentation and unless otherwise indicated, all internal rates of return (“IRR”) are presented on a “gross” basis (i.e. they do not reflect the management fees,

“carried interest”, taxes, and other partnership expenses to be borne by investors in the partnership, which in the aggregate are expected to be substantial). Additionally, this

Presentation contains “targets” or “forward-looking statements.” Actual events or results or the actual performance may differ materially from those reflected or contemplated

in such statements.

The information contained herein, including without limitation, indicative terms, prices, forecasts and projections, are based on the information reasonably available at the

time of the preparation of this material. However, such information necessarily incorporates significant assumptions and estimates as well as factual matters, and is subject

to correction, completion, verification and amendment without notice. The persons involved in the preparation of this material specifically reserve the right to amend or

replace information appearing in this material at any time, and undertake no obligation to update such information. No representation or warranty, expressed or implied, is or

will be made or given, and no responsibility or liability is or will be accepted by any person, as to or in relation to the accuracy, completeness, reasonableness, adequacy, or

feasibility of any of the information contained herein.

Recipients should not consider the contents of this material as legal, tax or investment advice. Each recipient should consult with its own counsel, accountant and/or

business advisor as to legal, tax and related matters.

datuk dr mohd iszlan ismail

Others