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Q & M Dental Group (Singapore) Limited

FY2009Results Presentation

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Contents

Section 1: Corporate Overview

Section 2: Recent Corporate Developments

Section 3: Financial Highlights

Section 4: Prospects and Future Plans

Section 5: Salient Highlights

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3

Q & M Dental Group (Singapore) Limited

CorporateOverview

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An Overview of Q&M

Singapore’slargest private

dental healthcaregroup

Provides full rangeof dental services

Over 350,000patients

island-wide

37 dental clinicsisland-wide, 1 mobile

dental clinic and 1Dental Centre

(market share ofapprox 5.9%*)

Large group ofqualified and

experienced dentistsand oral health

therapists

1 dental laboratorywhich fabricates

prosthesis

* Based on a total of 632 registered private dental clinics in Singapore in 2008 as extracted from the Singapore Dental Council Annual Report 2008

Strong brand namewith a 13-year track

record of robustorganic growth

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WOODLANDS

SEMBAWANG

YISHUN

BUKIT PANJANG

JURONG EAST

BUKIT BATOK ANG MO KIO

HOUGANG

PASIR RISSERANGOON

KALLANG

GEYLANG

TOA PAYOH

BUKIT TIMAH

TIONG BAHRU

BOON LAY

CLEMENTI

Nationwide Reach

37 dental clinics, 1 mobile dental clinic and 1 Dental Centre across SingaporeTreated over 350,000 patients (approx 16% of Singapore’s population who visit dentists at least once a year*)

* Based on 46% of Singapore’s population of 4.8 million as extracted from the Statistics Singapore website (http://www.singstat.gov.sg/stats/themes/people/hist/popn.html).According to the Health Promotion Board’s Oral health Campaign 2005, only 46% of adults visited the dentists at least once a year.

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SOMERSET

CENTRAL

NORTH

SOUTH

EAST

WEST

BUKIT GOMBAK

TAMPINES

No

.of

clin

ics/

Staf

fst

ren

gth

Robust Organic Growth

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1 5 1 6 5

51

10

116

12

168

16

224

21

278

27

344

30

374

32

398

32

380

35

432

38

469

0

100

200

300

400

500

1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

No. of clinics Staff strength

N.B.No. of clinics in 2009 includes theDental Centre

Mobile Dental Clinic (“MDC”)

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• Provides dental healthcare services at diverselocations around Singapore such as open carparks of industrial estate

• On-site affordable dental screening for staff andworkers of corporations

• Simple procedures such as scaling, polishing andfillings. Patients who need more complextreatments are referred to our dental clinics

• As part of our corporate social responsibility(“CSR”) initiatives, the MDC provides free dentalchecks for students of junior colleges,polytechnics and universities, as well as theunderpriviledged

• Embarked on our first island-wide dentaloutreach programme in September 2008

Our Comprehensive Dental Services

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Our Comprehensive Dental Services

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Our Comprehensive Dental Services

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An established & reliabledental healthcare services

provider in Singapore

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Established andvisible brand name

Strong leadership

*Between Dec 2005 and October 2009**As at latest practicable date

Our Core Strengths

• Experienced managementteam

• 18 Principal Shareholders –10 years service contractand moratorium period

>110 qualifieddentists

• Approximately 9%** of1,300 dentists in practice inSingapore

Strategically locatedclinics islandwide

Multi-disciplinaryexpertise

• Located near amenitieslike bus interchangesand MRT stations

Large patient base

• Treated > 350,000*patients

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Q & M Dental Group (Singapore) Limited

RecentDevelopments

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Opening of Dental Centre and New Clinic

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37th Q&M Dental Clinic,at Sun Plaza

• 3rd clinic in Sembawang area• Operational on 14 December 2009

• 32 treatment rooms; total floor area of approximately 12,000 sq ft• Multi-disciplinary dental healthcare services at a single location• Focus on specialist dental healthcare services• Equipped with latest technology – Galileos Cone Beam 3D

Radiography, CEREC one-day crown and dental laser• Investment cost – S$3 million• Operational on 17 December 2009• One of the first private dental practices to apply to become a

Ministry of Health accredited learning centre

Singapore’s Largest PrivateDental Centre, at City

Square Mall

Proposed Acquisition ofDental Specialist Practice in Hong Kong

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AcquisitionInformation

• Entered into conditional S&P on 10 Jan 2010 to acquire 100% of Dental ImplantSurgical Centre Limited (“DISC”)

• Purchase Consideration – HK$53,328,000 (~ S$9,591,366)- HK$30 million (S$5,395,683) to be satisfied in cash- HK$23,328,000 (S$4,195,683) by issue of 8,068,622 New Shares

in Q&M at S$0.52 each• Completion is subject to satisfactory due diligence of DISC which is ongoing

About DISC• Well-established and profitable private dental practice in Hong Kong• Dental implant clinic offering highly niche specialist practice in Oral

Maxillofacial Surgery (“OMS”)• 7 OMS surgeons – largest number of OMS surgeons in a single private practice• 40% to 50% market share of the OMS discipline in Hong Kong

• Vendors (OMS Surgeons) to enter into 8 years service agreements with Q&M(in line with Q&M’s practice for its principal shareholders)

• 10-year moratorium for Q&M shares that will be issued to Vendors

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ProfitGuarantee

ProfitGuarantee

fromVendors

Rationale forAcquisition

• Profitable clinic will provide Q&M with steady income stream• Niche practice in OMS will enhance Q&M’s competency in dental healthcare• Leverage on the experience of DISC’s 7 specialist dental surgeons

PrincipalTerms

• FY2008 PBT – HK$5.8m; NTA as at 30 Nov 2009 – HK$22.1m• Profit Guarantee – PBT not less than HK$5.8m each year from FY2010 to

FY2017 inclusive

Proposed Acquisition ofDental Specialist Practice in Hong Kong

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Q & M Dental Group (Singapore) LimitedFinancial

Highlights16

Revenue

Financial years ended 31 December

No. of dental clinics 32 32 35 38

Average revenueper clinic

761.5 826.3 845.7 797.6*

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0

5000

10000

15000

20000

25000

30000

35000

FY2006 FY2007 FY2008 FY2009

S$’000

24,36826,443

29,601 30,308

15,704

13,897

16,275

14,033

Revenue in FY2009 increased 2.4%

- full year contribution from dentalclinic at Gombak MRT (opened Sep2008)

- maiden contributions from 3 newlyopened dental clinics/centre in FY2009

Revenue from 2H09 better than 1H09by 16.0%

- growth in demand for dentalhealthcares services in 1H09 impededby economic slowdown

- improved contributions from existingdental clinics in 2H09 due torecovering economy

- seasonally higher revenue inDecember due to higher usage ofannual corporate dental benefits

1H09

2H09

*Due to 3 new clinics - Tampines, Sun Plaza and Dental Centre at City Square Mall –which opened only towards the end of FY2009

0%

20%

40%

60%

80%

100%

FY2006 FY2007 FY2008 FY2009

7%

9%

60%

8%

7%

8%

60%

9%

10%

8%

59%

8%

10%

9%

61%

7%

Expenses

Financial years ended 31 December 18

Expenses as a percentage of Group revenue

FY2009 vs FY2008

Employee benefits increased 5.6% toS$18.5 m

- increased staff strength to supportenlarged operations and futuregrowth

- salaries and fees paid to Directors

Rental expense up 14.6% to S$2.9 m

- overall increase in rental rates

- new dental clinics, including 12,000square foot Dental Centre

Consumables and dental supplies useddecreased 12.3% to S$2.2 m

- adoption of ISO processes

- tighter procurement control andbetter management of purchases

Consumables and Dental Supplies

Employee Benefits

Rental

Others (Depreciation, Other expenses, Other charges, Finance costs, Professional fees relatedto the Placement)

Net Profit and NP Margin

19Financial years ended 31 December

3,7734,125

3,7233,806

4,372 4,304

0

1,000

2,000

3,000

4,000

5,000

FY2006 FY2007 FY2008 FY2009 FY2008a FY2009a

15.5% 15.6%

12.6% 12.6%

14.8% 14.2%

Net Profit Margin

Profit After Tax(S$’000)

FY2008a and FY2009a adjusted for professional fees and expenses in relation to the Placement of $649,000and $498,000 incurred in FY2008 and FY2009 respectively.

Balance Sheet

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(S$ million) 31 Dec 2009 31 Dec 2008

Key Assets

Trade and Other Receivables (short-term) 1.7 1.0

Cash and Cash Equivalents 21.6 4.3

Plant and Equipment 4.4 2.6

Other Receivables 1.1 0.2

Key Liabilities

Trade and Other Payables 3.8 3.1

Short-term Bank Loan 0.5 -

Equity

Shareholders’ Equity 24.3 4.7

Per Share Data and Financial Ratios

Per Share Data* (cents) FY2009 FY2008

Cash Per Share 7.88 1.55

Net Asset Value Per Share 8.88 1.71

Earnings Per Share 1.39 1.36

Proposed Final Dividend Per Share 0.6183 N.A.

Financial Ratios FY2009 FY2008

Net Gearing (times) Net Cash Net Cash

Return on Equity 15.6% N.M.

Current Ratio (times) 5.0 1.6

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*Based on total number of shares issued of 274,075,000 shares as at 31 December 2009Listing Date: 26 November 2009

Dividend Payout• 90% of 2H FY2009 net profit• At least 50% of net profit to shareholders in FY2010

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Q & M Dental Group (Singapore) LimitedProspects andFuture Plans

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Prospects

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Significant scope for growthin Singapore’s dental

healthcare market

•Only 46.5% of adults visited dentists atleast once a year

•Ratio of dentist to patients is 1:3400which is below developed nations of1:1200

Reputation of Singaporeas medical hub drivesoverseas demand forhigher value-addeddental healthcareservices

Rising affluence drivesdemand for primarycare and specialiseddental healthcareservices (aesthesticsdentistry)

Potential for higher qualitydental healthcare services in

the PRC

Growing affluenceand huge populationin the PRC

Private dental clinicsoffer higher value anddifferentiated servicesfrom governmentclinics

Future Plans

Expand network

of dental clinics

and upgrade

existing facilities

in Singapore

Develop

business of the

new Dental

Centre

Expand dental

practice into the

PRC

Expand through

acquisitions, JV

and/or strategic

alliances

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Expand Dental Clinic Network in Singapore

• Opened 2 new clinics and 1 Dental Centre in 2009– Tampines, Sun Plaza, City Square Mall

• Continually assessing suitable and convenient locations to setup new clinics

• Upgrade existing facilities to meet expected demand anddeliver high quality dental healthcare services

Potential to grow market share in Singapore

Q&M’s currentmarket share

• 5.9% based on dental clinics• 9.0% of dentists in practice in Singapore• Around 16% of Singapore’s population who

visit dentists at least once a year

Develop Dental Centre Operations

Multi-disciplinary dental healthcare services, focusing on specialistdental healthcare services at a single location

• Continue to expand team of dentists trained in specialistdental healthcare services

• Expand patient base- KSP : Large size, state-of-the-art technologies, highquality and fast turnaround time

• Marketing and promotional programs to raise profile ofDental Centre

• Well-positioned to capture larger share of the growingmarket for specialist dental healthcare services

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Expand Dental Practice into the PRC

To ride on the rising affluence and greater demand forbetter quality dental healthcare services

• Plans to expand into the PRC through wholly-ownedor joint-venture subsidiaries

• Consider acquiring potential and existing dental clinicchains in the PRC

• Ongoing discussions with a number of potentialpartners in the PRC. These discussions do notrepresent or indicate any affirmation of the Group’sacquisitions, partnerships or collaborations in anyform in the PRC

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Q & M Dental Group (Singapore) LimitedSalientHighlights

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Investment Merits

Strong Brand Name• Visible and readily recognisable brand in dental healthcare in Singapore

Organic Growth• > 13 years track record of robust organic growth, lead by Dr Ng Chin Siau• Key shareholders are effectively committed to Q&M for next 10 yrs• Seeking out growth opportunities in Singapore and China

Largest Private Dental Healthcare Group in Singapore• 37 dental clinics and 1 Dental Centre at highly accessible locations• Treated > 350,000 patients (approximately 16% of Singapore’s population who

visit the dentists at least once a year)• Dental healthcare industry is highly fragmented market

Dental Healthcare in various fields of expertise• More than 110 dentists and oral health therapists• >30 have post-graduate training in the fields of endodontics, orthodontics,

periodontics, prosthodontics, paedodontics, oral surgery and implant dentistry

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Investment Merits

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Positioned as High Quality and Reliable Dental Healthcare Services Provider

Favourable Financials• Strong cash flow

• Low capital expenditure• Net cash position• Low inventory• Low debtors

Dividend Payout for FY2010 to be at least 50% of PAT

Perceived to be less susceptible to economic downturn

Safe Harbour for Forward-looking Statements

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This presentation contains certain statements that are not statements of historical fact, i.e. forward-lookingstatements. Investors can identify some of these statements by forward-looking items such as ‘expect’, ‘believe’,‘plan’, ‘intend’, ‘estimate’, ‘anticipate’, ‘may’, ‘will’, ‘would’, and ‘could’ or similar words. However, you should notethat these words are not the exclusive means of identifying forward-looking statements. These forward-lookingstatements are based on current expectations, projections and assumptions about future events. Although Q&MDental Group (Singapore) Limited believes that these expectations, projections, and assumptions are reasonable,these forward-looking statements are subject to the risks (whether known or unknown), uncertainties andassumptions about Q&M Dental Group (Singapore) Limited and its business operations.

Some of the key factors that could cause such differences are, among others, the following:

• changes in the political, social and economic conditions and regulatory environment in the jurisdictions where weconduct business or expect to conduct business;

• the risk that we may be unable to realise our anticipated growth strategies and expected internal growth;

• changes in currency exchange rates;

• changes in customer preferences and needs;

• changes in competitive conditions in the dental services industry and our ability to compete under these conditions;

• changes in pricing for our services; and

• changes in our future capital needs and the availability of financing and capital to fund these needs.

Given these risks, uncertainties and assumptions, the forward-looking events referred to in this presentation may notoccur and actual results may differ materially from those expressly or impliedly anticipated in these forward-lookingstatements. Investors are advised not to place undue reliance on these forward-looking statements.

Investors should assume that the information in this presentation is accurate only as of the date it is issued. Q&MDental Group (Singapore) Limited’s business, financial conditions, results of operations and prospects may havechanged since that day. Q&M Dental Group (Singapore) Limited has no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

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Q & M Dental Group (Singapore) Limited

Thank You

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Q&M Dental Group (Singapore) Limited67 Ayer Rajah Crescent#05-12/14 Ayer Rajah Industrial EstateSingapore 139950www.QandM.com.sgEmail: QandM@QandM.com.sg

Investor Relations Contact:Octant ConsultingTel : (65) 6220 2842herman@octant.com.sg or lisa@octant.com.sg