Singapore O&G : SOG Continues To Deliver Strong Financial Performance In FY 2021 With Revenue Growth Of 6.3%

SINGAPORE O&G LTD.

(Company Registration No. 201100687M)

FOR IMMEDIATE RELEASE

SOG continues to deliver strong financial performance

in FY 2021 with revenue growth of 6.3%

• Achieved full year revenue growth of 6.3% to S$42.4 million in FY 2021.
• Posted net profit after tax of S$8.4 million.
• Proposed final one-tier tax exempt dividend of 0.90 Singapore cents. Together with interim dividend of 0.65 Singapore cents, total FY 2021 dividend amounts to 1.55 Singapore cents, representing a dividend payout ratio of 86.7% of distributable profit of FY 2021.

Financial highlights for the full year ended 31 December 2021:

Singapore, 23 February 2022 - Singapore O&G Ltd. ("SOG", the "Company" or collectively with its subsidiaries, the "Group"), a SGX Catalist listed company specialising in women's and children's health and wellness, announced today its unaudited financial results for the full year ended 31 December 2021 ("FY 2021").

The Group posted an increase in revenue of S$2.5 million or 6.3% from S$39.9 million for the full year ended 31 December 2020 ("FY 2020") to S$42.4 million for FY 2021. Our Dermatology and Paediatrics segments saw the highest revenue growth of S$2.1 million and S$1.0 million respectively due mainly to the increase in patient load from the lifting of suspension of non-

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essential services during FY 2021. The increase is offset by the decrease of S$0.4 million and S$0.2 million from our Cancer-related and Obstetrics & Gynaecology ("O&G") segments respectively due mainly to the decrease in patient load.

Other operating income decreased by S$0.5 million or 36.7% from S$1.4 million in FY 2020 to S$0.9 million in FY 2021. The decrease is due mainly to the reduction in government grants for the Corona Virus Disease 2019 ("COVID-19") support schemes such as the Jobs Support Scheme, Foreign Workers Levy Rebate and Property Tax Rebate.

Consumables and medical supplies used increased by S$0.7 million or 9.9% from S$6.7 million in FY 2020 to S$7.4 million in FY 2021. The increase is attributed mainly to the increase in consumables and medical supplies of S$0.5 million and S$0.2 million used by our Dermatology and Paediatrics segments respectively due to the increase in patient load.

Employee remuneration expense increased by S$1.9 million or 9.6% from S$19.4 million in FY 2020 to S$21.3 million in FY 2021. The increase is due mainly to higher FY 2021 incentive bonus provision and increment for specialist medical practitioners of S$1.2 million and S$0.1 million respectively, net increase of S$0.3 million for employee remuneration expense arising from two (2) new clinics offset by cessation of service of one (1) clinic in FY 2021, increase in FY 2021 bonus provision and salary increment for clinical and management staff of S$0.1 million and under-provision of FY 2020 and absence of reversal of over-provision of FY 2019 bonus totalling S$0.2 million.

Depreciation remained constant at S$2.2 million in FY 2020 and FY 2021. The higher depreciation charge of S$147,000 from right-of-use assets was attributed to the higher rental rates for a few of our clinic premises offset by the lower depreciation charge of S$90,000 for plant and equipment arising from the disposal of end-of-life fixed assets.

Other operating expense increased by S$0.1 million or 4.7% from S$2.2 million in FY 2020 to S$2.3 million in FY 2021. The increase is attributed mainly to increases of S$73,000, S$45,000 and S$33,000 in administrative expense, credit card charges and insurances respectively, offset by reduction in expected credit losses of trade receivables of S$42,000.

Share of results of a joint venture was a net loss of S$0.2 million in FY 2021. This is due to the start-up expenses such as lease expenses of the postpartum confinement centre in Johor, Malaysia (the "Johor Confinement Centre") and professional fees incurred by the joint venture company, LYC SOG Mother & Child Sdn. Bhd. and its subsidiary. The Johor Confinement Centre is expected to be operational by end March 2022.

As a result, the Group's net profit after tax attributable to shareholders decreased by S$1.1 million or 11.9% from S$9.5 million for FY 2020 to S$8.4 million for FY 2021. Consequently, the Group's earnings per share ("EPS") decreased by 0.23 Singapore cents or 11.6% from 1.99 Singapore cents for FY 2020 to 1.76 Singapore cents for FY 2021.

The Group's financial position remained healthy with zero borrowings and net asset value ("NAV") as at 31 December 2021 of S$42.7 million. NAV per ordinary share decreased by 0.08 Singapore cents due mainly to the increase in number of issued shares following the allotment of 666,666 shares award under the SOG Performance Share Plan.

The Group continues to generate strong net operating cash flows of S$11.9 million for FY 2021 and recorded a cash and cash equivalents balance of S$35.8 million as at 31 December 2021.

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In consideration of the Group's FY 2021 financial performance, the Board of Directors has recommended the payment of a final one-tier tax exempt dividend of 0.90 Singapore cents per share which is subject to the approval of shareholders of the Company at the annual general meeting to be held on 22 April 2022. Together with the interim dividend payment of 0.65 Singapore cents, this brings the FY 2021 total dividend to 1.55 Singapore cents, representing a dividend payout ratio of 86.7% of the Group's net profit for the year.

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Mr. Eric Choo, Chief Executive Officer of SOG said, "Despite the COVID-19 pandemic, we continue to deliver strong financial performance with a revenue growth of 6.3% in FY 2021.

Our performance and effort were recognised through the Singapore Corporate Awards (2021 Special Edition)'s Corporate Excellence & Resilience Award which recognised listed companies that led the way in corporate governance and sustaining shareholder returns during the COVID-19 pandemic. In addition, SOG continues to be listed this year as one of the Top 75 Fastest Growing Companies of 2022 by The Straits Times and global research company, Statista. We remain committed to our patients and their families to provide quality and service excellence.

In 2H 2021, we added new endocrinology services to our O&G business segment. We welcomed our Endocrinologist, Dr. Cho Li Wei ("Dr. Cho") to our Group. Dr. Cho manages patients with diabetes, thyroid disorders, osteoporosis, male and females reproductive endocrinology, calcium disorders, Vitamin D and electrolyte imbalances, pituitary and adrenal diseases, hypertension and obesity and lipid disorders.

In addition, we are excited to announce our joint venture in the Johor Confinement Centre will be operational by end March 2022. We will share more information on our confinement services and the Johor Confinement Centre on our social media platforms in the next few weeks.

We will continue to strengthen our four business segments to deliver better results to our shareholders, as we forge ahead to grow and diversify beyond the provision of O&G services."

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ABOUT SINGAPORE O&G LTD.

("SOG" or collectively with its subsidiaries, the "Group")

Established in 2011, SOG is a leading healthcare service provider dedicated towards delivering holistic health and wellness services specially catered to the modern family.

With a long and established track record in Singapore providing obstetrics and gynaecology ("O&G") services such as pre-pregnancy counselling, delivery, pregnancy and post-delivery care, the Group has since expanded its spectrum of healthcare services to include paediatrics, endocrinology, gynaecological cancer, cancer-related general surgery for breast, thyroid and colon (colorectal), as well as skin and aesthetics treatments.

The Group's clinics, under its four operating segments of O&G, Paediatrics, Cancer-related and Dermatology, are strategically located throughout Singapore to provide easy access for its patients.

SOG has been listed in the Catalist board of the Singapore Exchange Securities Trading Limited since 4 June 2015.

For more information about the Group, please visit SOG's website at www.sog.com.sgand follow us on the following social media platforms:

@SOGhealthcare

SOGhealthcare

For media and analyst queries, please email to ir@sog.com.sg. Alternatively, you may contact:

Ms. Doreen Chew

Chief Financial Officer

Tel: +65 6440 4123

Email:doreen.chew@sog.com.sg

This press release has been reviewed by the Company's sponsor, PrimePartners Corporate Finance Pte. Ltd. (the "Sponsor"). It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "Exchange") and the Exchange assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinions made or reports contained in this document.

The contact person for the Sponsor is Ms. Jennifer Tan, 16 Collyer Quay, #10-00 Income at Raffles, Singapore 049318,sponsorship@ppcf.com.sg.

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