Press Release – 3-month (“3Q10”) and 9-month (“9M10”)

Results ended 31 March 2010

SGX-listed Koda reversed from losses

to post net profit of US$0.4m for 9M10
• Improved 9M10 results – revenue rose 14.3% and return to
profitability compared to 9M09

• Improved 3Q10 results – revenue rose 46.6% and loss

narrowed by half compared to 3Q09

• Continued to operate with strong financial position and on

low gearing level

• Outlook: Group will be profitable in FY2010 and financial

position will remain strong
US$ (’000) 3Q10 3Q09 % 9M10 9M09 %
Change Change
Revenue 9,477 6,466 46.6 34,013 29,756 14.3
Gross Profit 2,429 1,707 42.3 8,720 7,729 12.8
Net profit attributable to equity (486) (960) (49.4) 356 (215) NA
holders
Cash and cash equivalents – as at 4,368 4,535 (3.68) 4,368 4,535 (3.68)
Earnings per share (US cents) (0.36) (0.72) (50) 0.27 (0.16) NA
Net Asset Value per share 20.00 20.23 (1.14) 20.00 20.23 (1.14)
(US cents)
Singapore, 12 May 2010 - Koda Ltd (“Koda” or “the Group”) announced today a net
profit after tax of US$0.36 million for the nine months ended 31 March 2010 (“9M10”),
reversing a loss of US$0.22 million a year earlier as a result of generally improved
economic conditions in the US market.

The SGX-Mainboard-listed Singapore-headquartered exporter of home furniture for the

mid-to upper-end market segments said the bottom-line performance was lifted by a
14.3% increase in revenue to US$34.0 million for 9M10 from US$29.8 million in 9M09
while its gross profit rose 12.8% to US$8.7 million from US$7.7 million.

For the three months ended 31 March (“3Q10”) – Koda’s seasonally weakest quarter –
revenue grew 46.6% year-on-year to US$9.5 million on higher sales to US while gross
profit rose 42.3% to US$2.4 million from US$1.7 million. This was Koda’s third
consecutive quarter of growth compared to each correspondence period of reporting. The
Group’s 3Q10 top-line performance helped narrow the Group’s year-on-year loss to
US$0.49 million from a 3Q09 net loss of US$0.96 million on revenue of US$6.5 million.

In its 2Q and 1H10 results announcements Koda had cautioned investors about the
weakest 3Q and the possible fall in revenue compared to 2Q due to shorter production
days in the quarter.

Commenting on the Group’s 3Q and 9M10 performance, Koda’s Managing Director Mr

James Koh Jyh Gang, said, “We have seen improvement in consumer sentiments
generally in the US as reflected in our top-line growth despite the fact that we were in our
seasonally weakest quarter. Our current orders book from the US clients is encouraging.”
Explaining the loss in 3Q10, Mr Koh said, “Consumers continued to be cautious in their
spending and opted for less luxurious or premium ranges. At the same time, raw material
prices were higher. These dragged our gross margin down further and were compounded
by a lower utilisation rate at and maiden fixed costs for our newly expanded facilities in
Vietnam.”

However, Koda firmly believes that the results indicate an improving economy condition
in the US but caution on the continually weak demand from the EU given the possible
chain-reaction from the Greek debt crisis (possibly Spanish and Portuguese as well) .

The Group continues to remain in a financially strong position with cash balances of
almost US$4.3 million as at 31 March 2010. Net gearing remained relatively low at
approximately 0.11 times at 31 March 2010. Koda generated positive cash flow from
operations of US$0.25 million due mainly to lower working capital investments despite
the 3Q10 net loss of US$0.48 million.

Barring unforeseen circumstances, Koda’s Directors continue to believe that the Group
will be profitable in FY2010. The financial position of the Group is expected to remain
strong and gearing level to remain low. The strong balance sheet continues to enable the
Group to capitalise on any strategic M&A opportunities.
 # ends #
This document is to be read in conjunction with Koda’s exchange filings, i.e. results
announcement Appendix 7.2 and outlook statement, on 12 May 2010, which can be
downloaded via www.sgx.com.

Issued on behalf of the Company by WeR1 Consultants Pte Ltd

Media Contact Info:

WeR1 Consultants Pte Ltd

Tel: +65-6737 4844 Fax: +65-6737 4944
Lai Kwok Kin, Managing Director, laikkin@wer1.net, Hp: +65-98192153;
Reshma Jain, Consultant, reshma@wer1.net, Hp: +65-9814 0507

About Koda Ltd

Established in Singapore and founded in 1972, Koda is backed by a management with

combined experience of close to a century and recognised as a leading Original Design
Manufacturer (“ODM”) to the world. Koda is a strong contender for home furniture
export and could possibly be the largest dining room furniture exporter in South-East
Asia. Koda’s range of design-intensive products exudes individuality, sophistication and
elegance.

Koda is well-known for its design strength – leading to appreciation from upscale
customers worldwide for its aesthetical and functional pieces. With proven market
experience, strong product development and significant in-house design expertise, Koda
has been able to offer more than 300 product models, secure orders from more than 200
customers and sell to more than 50 countries.

Consistent business strategies and focused growth initiatives differentiates Koda from
others. Koda has been emphasising on cost-effective expansion and the enlarged
production and sourcing facilities in Vietnam and China enhance its cost competitiveness.
In addition to its growing base in Vietnam, the Group has another manufacturing base in
Malaysia which specialises in certain range of products.