2018 Annual Report Sime Darby Property Berhad (15631-P) (15631-P) Level 10, Block G Sime Darby Property Berhad No. 2, Jalan PJU 1A/7A, Ara Damansara, PJU 1A 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia www.simedarbyproperty.com About Our Report
With over four decades of established leadership and proven track record, our continuing mission is to meet the ever-evolving property needs of a developing Malaysia, build sustainable communities and a brighter future for everyone. And in our efforts, we remain committed to creating long-term value for all our stakeholders.
Since our listing in 2017, this is our first annual report for the Financial Year 2017/2018 (FY2018), prepared in accordance with the principles prescribed by the International Integrated Reporting Council. Embarking on a journey with integrated reporting (IR) has been an important decision for us, in terms of evolving with our paradigm of ‘value creation’. With IR, our attempt will be to further build on our strategies, improve on our processes, and strengthen our capitals.
Period The Six Capitals Sustainability The FY2018 report of Sime Darby Property In progressing towards our vision of Sime Darby Property’s ultimate objective Berhad (hereafter referred to as Sime building sustainable communities through is to create sustainable communities and Darby Property), covers the period 1 July sustainable property development, we are to create value for our multiple 2017 until 30 June 2018 unless otherwise empowered by our six capitals (inputs) and stakeholders. All our efforts are channelled stated and it is published annually. encouraged by the effects on them i.e., towards creating positive impact across value creation. Our business model on page the 3 Sustainability Sphere – People, 34 contextualises how the capitals are Planet and Prosperity. Our sustainability Scope deployed, how we use our internal commitments and achievements for the governance and systems, the strategies to year under review are included in this The report covers Sime Darby Property’s manage externalities and key performance report on page 164. main activities, key business areas, indicators (KPIs) towards measuring subsidiaries as well as joint venture outcomes across the six capitals. operations in Malaysia and abroad. The report also discusses our outlook, targets Forward Looking and objectives. Statements Stakeholder Engagement This report may contain forward-looking & Value Creation statements on Sime Darby Property’s Format We have applied the principles of future direction, topline strategies and Stakeholder Relationships and Materiality potential opportunities for growth. In keeping with IR Principles, the report (see page 36 on our Stakeholder However, such statements in relation to includes information on both financial and Engagement Plan) when determining our both financial and non-financial non-financial performance of Sime Darby organisational ‘FOCUS’. This means performance are not conclusive and the Property, with clear articulation of various understanding and responding to the needs actual implementation and results may risks and opportunities, our mitigation of our stakeholders and matters that are differ from our projections/expectations, strategies, and management approaches to material and significantly impact our ability depending on various risk factors, market value creation. The report has also been to create value. The key material matters, uncertainties and possible deviation from prepared in compliance with Bursa various risks and opportunities associated our set path due to strategic interventions. Malaysia Main Market Listing with them, our mitigation strategies and Requirements; Malaysian Financial positive outcomes are outlined on page 39. Reporting Standards and Companies Act 2016 in Malaysia. Rationale Sime Darby Property has established itself as one of the leading property developers in Malaysia. With our listing on Bursa Malaysia last year, we are now moving into a new era which will enable us to pursue our aspirations with greater focus and agility, taking advantage of potential growth opportunities to maximise value for all our stakeholders. We will also focus on innovative solutions and strive to deliver excellence while building the capacity and skills of our employees.
Driven by a winning mindset coupled with a disciplined approach to operational excellence and cost optimisation, we will continue to accelerate performance and growth whilst building on our strengths for a sustainable future.
Corporate Book
Contents • Provides a comprehensive assessment of the Group’s performance for the Financial Year 2018 and outlook for 2019.
Regulations Complied • Companies Act, 2016 in Malaysia. • Bursa Malaysia Main Market Listing Requirements. CORE BUSINESS • Property Development • Property Investment • Leisure & Hospitality • Concession Arrangement
Townships and Land bank to be Total Estimated Developments: Developed: Gross Development Value (GDV):
23 20,572 RM89.3 acres billion
WHO WE ARE AND WHAT WE DO
Sime Darby Property has a 45-year track record in developing residential, commercial, and industrial properties. We are also present in the United Kingdom through the Battersea Power Station (BPS) project in London. We are Malaysia’s biggest property developer in terms of land > bank, with a balance developable area of 20,572 acres and a total estimated GDV of RM89.3 billion. We also have a footprint in the Overview of Sime Darby Property Berhad United Kingdom through the redevelopment of the iconic Battersea Power Station (BPS) project in London.
We have built to date 23 active townships and developments that > are strategically located and connected to major highways and transportation hubs within key growth areas and economic corridors stretching from the central region of Klang Valley to Negeri Sembilan and Johor in the South.
We pride ourselves as a developer of sustainable communities > with our earlier townships such as Taman Melawati and Subang Jaya, developed in the 1970s, as well as Bukit Jelutong, built in the 1990s. Our townships have matured and still remain sought- after addresses and vibrant population centres throughout the years.
The Company became a public listed entity on 30 November > 2017, the beginning of a new era for Sime Darby Property. While it benefitted from being part of the country’s biggest conglomerate, then Sime Darby Group, Sime Darby Property grew into a leading Malaysian developer that needed to transform and unlock its potential value for its stakeholders. As a recognised brand with an established track record, the largest land bank in Malaysia at the most strategic locations, and a wide product offering for all market segments, Sime Darby Property is ready to chart its own future. VISION Leader in Building Sustainable Communities
MISSION To Create a Place that Inspires, Connects and Lasts for Generations to come
CORE VALUES
P assion
R espect & Teamwork
I ntegrity & Accountability
M ake it happen
E ntrepreneurial spirit MARKET CAPITALISATION RM 8.2 billion as at 30 June 2018 Overview of Sime Darby Property Berhad TOTAL ASSETS RM 14.7 billion as at 30 June 2018
TOTAL EMPLOYEES 1, 5 8 4 as at 31 July 2018
PRESENCE IN
5 countries
MALAYSIA
SINGAPORE
VIETNAM
AUSTRALIA
UNITED KINGDOM CORE BUSINESS SEGMENTS & SEGMENT HIGHLIGHTS PROPERTY DEVELOPMENT Sime Darby Property prides itself as a leading developer of landed and strata properties for residential, offices, retail and industrial developments. Our ongoing townships reflect our well known developments in Taman Melawati, Subang Jaya and Bukit Jelutong. Some of our recent developments include City of Elmina in Shah Alam, Serenia City in Sepang, Bandar Bukit Raja in Klang and Bandar Universiti Pagoh in Johor.
Key Highlights in Malaysia RM 88.9 percent 92.4 percent 2.3 billion Contribution to Contribution to Net Sales Value and 3,045 Group Revenue Group PBIT units sold for the year
PROPERTY INVESTMENT Under our Property Investment arm, we undertake leasing and property management services for assets in Malaysia, Singapore and United Kingdom which include apartments, corporate offices, and commercial and retail spaces.
We jointly developed Melawati Mall with CapitaLand Mall Asia, located in Taman Melawati which opened its doors on 26 July 2017.
Key Highlights
1.5 percent 1.3 million sq.ft. 90 percent Contribution to Total Net Average Occupancy Group Revenue Lettable Area Rate
LEISURE & HOSPITALITY The Leisure and Hospitality arm of our business manages the hospitality and leisure assets which include a convention centre and three golf courses in Malaysia and serviced residences located in Singapore, Australia and Vietnam.
Key Highlights in Malaysia
Achieved over percent 4.3 percent Contribution to 80 Group Revenue Customer Satisfaction Index
CONCESSION ARRANGEMENT The Pagoh Education Hub (PEH) is an integrated hub for four reputable institutions of higher learning – Universiti Tun Hussein Onn Malaysia, International Islamic University Malaysia, Universiti Teknologi Malaysia and Politeknik Tun Syed Nasir. PEH is an important catalyst for the development of the 4,099 acres Bandar Universiti Pagoh township.
Under a concession arrangement, the Group is responsible for the design, development, financing, construction and completion of PEH and for its maintenance, post-completion, under a 20-year concession arrangement.
Key Highlights
Over 4 institutions 7,000 students of higher learning SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018
Our Competitive Strengths
• Large Developable Land Bank in Strategic Locations • Well Positioned to Benefit from Opportunities in Major Strategic Development Region such as Malaysia Vision Valley • Established Track Record in Property Development • Broad Product Offering • Recognised Brand with Established Market Positioning • An Experienced Board and Management Team
Our Distinctive Developments TOWNSHIP Bandar Ainsdale, DEVELOPMENT Seremban SIGNATURE/NICHE City of Elmina, (562 acres) DEVELOPMENT Shah Alam (Denai Alam, ALYA, Elmina East, Elmina Taman Pasir Putih, Kuala Lumpur West and Bukit Subang) Pasir Gudang (360 acres) (356 acres) (5,000 acres) Senada Board of Directors
Bukit Jelutong, Bandar Universiti USJ Heights, CHAIRMAN Shah Alam Pagoh, Muar (4,099 acres) Subang Jaya (2,205 acres) (375 acres) Tan Sri Dr. Zeti Akhtar Aziz Ara Damansara, Bandar Bukit Raja, Klang Chemara Hills, (4,333 acres) Petaling Jaya GROUP MANAGING DIRECTOR (693 acres) Seremban (44 acres) Dato’ Sri Amrin Awaluddin Serenia City, Oasis Damansara Sepang Cantara Residences (2,370 acres) INTEGRATED BOARD MEMBERS Taman Melawati, DEVELOPMENT Nilai Impian, Nilai Ulu Klang • Datuk Tong Poh Keow KL East, (1,809 acres) (880 acres) • Dato’ Jaganath Derek Steven Kuala Lumpur Serini (160 acres) Sabapathy Planters Haven, Nilai (250 acres) Quarza Residence • Tengku Datuk Seri Ahmad Shah JOINT VENTURE Alhaj ibni Almarhum Sultan Putra Heights, DEVELOPMENTS SJCC, Subang Jaya Salahuddin Abdul Aziz Shah Alhaj Subang Jaya (30 acres) • Dato’ Johan Ariffin (1,796 acres) PJ Midtown Lot 15 (6 acres) • Datuk Dr. Mohd Daud Bakar Saujana Impian, Radia, Bukit Jelutong • Dato’ Seri Ahmad Johan Kajang (12 acres) Mohammad Raslan (600 acres) • Datin Norazah Mohamed Razali • Encik Rizal Rickman Ramli NUMBER OF Shareholding Structure UNITS LAUNCHED: as at 30 August 2018 4,098 KWAP 4.6% NUMBER OF UNITS SOLD: EPF 3,045 10.9% NET SALES VALUE:
RM2,250 million Other Domestic Shareholdings 14.3%
PNB SALES PERFORMANCE 55.8% Foreign Sales by Region (%) Shareholdings 14.4% Note: • Selangor : 89.5 Tan Sri Abdul Wahid Omar and Dato’ Rohana Tan Sri • Negeri Sembilan : 6.7 Mahmood resigned from the board on 30 June 2018. • Johor : 2.1 • Kuala Lumpur : 1.7 1 CONTENTS
Overview of Sime Darby Management Discussion 1. Property Berhad 3. Corporate Overview 4. & Analysis
• About Our Report 20 2018 Key Highlights (A) STRATEGIC REVIEW • Who We Are & What We Do 20 Business Highlights 28 Market Review and Outlook • Vision 20 Awards and Achievement 32 Trends and Growth Opportunities for • Mission 21 Financial Highlights the Group • Core Values 21 Segmental Highlights 34 Our Value Creating Business Model • Our Presence 22 Key Milestones 36 Stakeholder Engagement • Core Business Segments & Segment 24 Group Corporate Structure 39 Our Capitals, Material Matters & Highlights (Operating Entities) Value Creation • Our Competitive Strengths 25 Corporate Information 42 Our Strategic Road Map • Our Distinctive Developments 44 Key Risks and Mitigation
(B) PERFORMANCE REVIEW 2. Key Messages 50 Group Financial Review 60 Quarterly Performance 61 Statement of Value Added 6 Chairman’s Message 62 5-Year Financial Summary 10 Group Managing Director’s Review 63 Key Performance Metrics 18 Group Chief Financial Officer’s 64 Financial Calendar Statement 65 Investor Information 65 Investor Relations 68 Share Price Movements 68 Share Price Performance
(C) OPERATIONS REVIEW 69 Property Development 84 Property Investment Go online to our website at: www.simedarbyproperty.com 88 Leisure & Hospitality 90 Concession Arrangement
2 SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018
Grand Ballroom First Floor Sime Darby Convention Centre 1A, Jalan Bukit Kiara 1 60000 Kuala Lumpur ANNUAL Malaysia GENERAL th MEETING Wednesday, 31 October 2018 45 OF SIME DARBY PROPERTY 10.00 a.m
Ensuring Integrity 5. and Governance 7. Sustainability Report 9. Shareholders’ Information
94 Board of Directors 164 Sustainability Report 308 Analysis of Shareholdings 96 Board Composition 168 Contributing to a Better 311 Properties of the Group 97 Board of Directors’ Profile Society 315 Corporate Directory 108 Executive Leadership Composition 178 Minimising Environmental 318 Notice of Annual General Meeting 109 Executive Leadership Profile Harm 323 Statement Accompanying Notice of 116 Organisation Structure 184 Delivering Sustainable the Forty-Fifth Annual General Development Meeting 324 Administrative Details for the Forty-Fifth (45th) Annual General Governance 6. Reports and Meeting (“AGM”) of Sime Darby 8. Financial Statements Property Berhad 118 Corporate Governance Overview 327 Form of Proxy Statement 188 Statement of Responsibility by 137 Nomination and Remuneration the Board of Directors Committee Report 191 Directors’ Report 10. Appendix 144 Additional Compliance Information 196 Statement by Directors 148 Statement on Risk Management and 196 Statutory Declaration 329 Notice to Shareholders Under The Internal Control 197 Independent Auditors’ Report Personal Data Protection Act 2010 155 Governance and Audit Committee 202 Statements of Profit or Loss 330 Notis kepada Pemegang Saham Di Report 203 Statements of Comprehensive Bawah Akta Perlindungan Data 161 Risk Management Committee Report Income Peribadi 2010 204 Statements of Financial Position 331 Notice to Proxies Under The 206 Statements of Changes in Equity Personal Data 208 Statements of Cash Flows Protection Act 2010 211 Notes to the Financial Statements 332 Notis kepada Proksi Di Bawah Akta Perlindungan Data Peribadi 2010 333 Independent Assurance Report
3 Environmental responsibility is vital to Sime Darby Property’s commitment to sustainable development. We track and monitor our impact on the environment through a combination of initiatives. From energy effi ciency initiatives to fl ood and waste management, we strive to create world-class sustainable developments with a positive impact on society and the environment. Environmental responsibility is vital to Sime Darby Property’s commitment to sustainable development. We track and monitor our impact on the environment through a combination of initiatives. From energy effi ciency initiatives to fl ood and waste management, we strive to create world-class sustainable developments with a positive impact on society and the environment.
Elmina Valley Key Messages
Chairman’s Message
017 was a year of ‘unlocking’ the Strategic Blueprint and Value Creation inherent potential of Sime Darby plans. The rigorous review took into 2Property. With four decades of consideration the prevailing and established track record in building prospective business environment as sustainable communities, Sime Darby well as the evolving consumer Property has now joined the ranks of preferences to define new growth listed companies on 30 November milestones. These will help push us 2017. This milestone has marked a forward into “The Next Era” of new beginning and a big step forward growth, which is also the theme of for us to optimise the potential and our first Integrated Annual Report. capacity of the Group, and above all, create value for our shareholders and Mindful of the challenges and stakeholders, with renewed focus on evolving economic demands, we have our core business. identified areas and issues that are and will be most material to our Post listing, we have embarked on a continued business success over the transformation journey and I am next 3-5 years. Based on our analysis pleased to report that we have been of the wide ranging risks and able to not only achieve our targets opportunities associated with them, for the year, but have fulfilled our we have mapped out our response to promise of stability and progress to the current and future challenges our many stakeholders. through our Strategic Blueprint and Value Creation plans. These have been With the new leadership line up, duly factored into our new Business helmed by Dato’ Sri Amrin Awaluddin Model, framed in the context of our as the Group Managing Director, the six capital inputs and value creation. Group has taken cognisance of the implications of the listing of Sime Darby Property on the Group’s 5-Year
6 SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018
DEAR SHAREHOLDERS, Sime Darby Property is now an independent entity with strong financial fundamentals, becoming more visible in our business of building sustainable communities and striving to the frontiers of property development. With our listing on 30 November 2017, our responsibility towards our stakeholders has grown multifold. We need to be more agile, more transparent, and more efficient as a business, delivering excellence at every stage of our growth journey. I am very optimistic about our future as a credible and reputable brand, focusing on innovative solutions and delivering positive financial and non- financial performance.
Tan Sri Dr. Zeti Akhtar Aziz
7 Key Messages Chairman’s Message
Financial industry experience from previously Net dividend pay-out ratio working with leading global brands. Performance They reinforce the existing expertise on the Board including Dato’ Sri In Financial Year 2017/2018 (FY2018), 53.1 percent Amrin, Datuk Tong Poh Keow, Dato’ the Group has benefitted from the and dividend yield Jaganath Derek Steven Sabapathy, resilient demand for landed properties YAM Tengku Datuk Seri Ahmad Shah despite an overall soft property 4.2 percent Alhaj ibni Almarhum Sultan Salahuddin market. Consumer sentiments in the based on share price of Abdul Aziz Shah Alhaj and Dato’ Johan sector in Malaysia remain fragile and Ariffin. rising tensions over a global trade war are adding to a general sense of RM1.20 The new Board composition speaks of uncertainty. diverse skill sets, backgrounds, technical PATAMI expertise and domain experience, which The Group reported a total Profit will go a long way into strengthening After Tax and Non-Controlling RM640.0 our position in the marketplace. Interests (PATAMI) of RM640.0 million million, generated from the RM2.4 I am also pleased to report that 30 billion in revenue for FY2018. This is percent of Sime Darby Property’s a 2.6 percent improvement over Board positions are now held by PATAMI in FY2017 despite recording Corporate high-potential women leaders, which a marginal decline in revenue of 9.9 Governance will drive balanced perspectives and percent from the previous year. decision-making. With a reputable brand built over four decades, we continue to embrace Under the new Board’s direction, the principles of good governance in Group Compliance Office (GCO) has Dividend fulfilling our business objectives. We completed a review of the Group assume responsibility towards our Policies and Authorities (GPA) to The Board recommends the payment shareholders and stakeholders in ensure its alignment with the needs of a second interim dividend of 3.0 conducting our business with of the property operations. In sen per share. Combined with the first integrity, and creating positive addition, the Code of Business interim dividend of 2.0 sen, the full economic, environmental and social Conduct has been enhanced by year dividend therefore amounts to impact. We also believe in setting building clarity into the document and 5.0 sen per share. This brings the new ‘leadership by example’ through simplifying it for the employees to total pay-out for the year under our uncompromising work ethics and understand. The process, led by the review to RM340.0 million. It industry best practices. GCO, involved internal stakeholder represents a net dividend pay-out engagement at various levels across ratio of 53.1 percent and a dividend During the year under review, we the Company. The new Code, which yield of 4.2 percent based on a share have not only assessed the quality or will be rolled-out in the current price of RM1.20 on 29 June 2018. gaps in our executive leadership, but financial year, is a positive outcome This is a commendable achievement in have also initiated the process of from inclusive efforts, and I am a highly challenging operating setting-up a high performing and confident that it will be well-received environment given that the initial effective Board. We have appointed by employees across the board. dividend payout target in our listing senior and diverse industry leaders prospectus was that it would be not including Datuk Dr. Mohd Daud Bakar, less than 20.0 percent, upon Dato’ Seri Ahmad Johan Mohammad Risk Management considering the financial requirements Raslan, Datin Norazah Mohamed Razali and Encik Rizal Rickman Ramli, and Internal in the first year of listing. who bring a wealth of sectoral and Controls
The Board is fully committed to maintaining a robust risk management 30 percent and internal control framework to of Sime Darby Property’s Board support our business objectives. We positions are now held by are also cognisant of the fact that our high-potential women leaders business is exposed to a wide-range of challenges that is beyond our control.
8 SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018
It is therefore imperative for the ASEAN 5 Index for the period July our new vision of emerging as a Group to continuously review its risk 2018 – June 2019, we are currently ‘Leader in Building Sustainable management process as we now have working to address various ESG Communities’ and to achieve new a greater opportunity to focus on the aspects material to our current and frontiers in property development. risks that are specific to our core future business aspirations. business. During the year, we took Following a comprehensive strategic the opportunity to revisit the Risk review, the Group has developed a Management Framework of the Our People new five-year Strategic Blueprint with former Sime Darby Berhad and adapt new strategic priorities and initiatives. it to Sime Darby Property’s business Our commitment to human capital Known as SHIFT20, it has been agenda and aspirations. From this development has only grown, with us designed to maximise shareholder starting point, we will moving forward becoming an independent entity. The value by enhancing our organisational strengthen our risk framework and biggest challenge will be to drive the capability, driving innovation and internal controls given the evolving quality of our manpower, while excellence, and strengthening our industry landscape and highly dynamic building the capacity and skills of our fundamentals. business environment. Our ultimate current employees in keeping with objective would be to embed the rapid digitalisation and dynamic shifts The Board will continue to provide its process of identifying and managing in marketplace towards frontier support for leading sustainable key risks into all our operations technologies. We will continue to performance and generating positive towards creating long-term invest in upskilling and reskilling returns for our shareholders. shareholder value. programmes, in addition to providing opportunities to high-potential employees to demonstrate their Acknowledgement Sustainability leadership and grow with the organisation. Succession planning is Finally, I would like to express my Sustainability continues to be an another key area, where we appreciation to our shareholders for important agenda for the Group. Our endeavour to create a pipeline of the continued trust and support for early focus was on operational talent within the current system, to the Group. I would also like to thank efficiency reinforced by our ensure the implementation of our my colleagues on the Board for their commitment to Corporate Social growth strategies and plans are efforts and contributions during the Responsibility (CSR). This approach sustainable, with positive progress financial year. has now been expanded to embed year on year. sustainability into our business model. A special mention to Tan Sri Abdul I also take this opportunity to Wahid Omar and Dato’ Rohana Tan Sri As a developer of large-scale projects acknowledge and extend our sincere Mahmood, the former Non- and townships, Sime Darby Property appreciation for the untiring efforts Independent and Non-Executive aspires to be a positive force in of our people in championing the Chairman and Senior Independent developing townships with positive demanding listing exercise, without Director respectively, who left the economic, social and environment compromising on business continuity Board on 30 June 2018. I thank them impact on current and future and performance. There is a sense of for their contributions to the Board. generations. Therefore, our business excitement and a new impetus for Finally, I would like to express my practices and management approaches growth amongst our employees as the heartfelt appreciation to the will aim to reflect the principles of Group achieved its independent Management team and all the the United Nations Global Compact. status. employees for their unstinting commitment and performance. Sime Darby Property is also the only Malaysian real estate company to be The Next Era for listed on Dow Jones Sustainability Emerging Market Index (DJSI), which Sime Darby means that we now have greater Property responsibility to closely monitor and In creating value for all stakeholders, carefully manage our Environmental, Tan Sri Dr. Zeti Akhtar Aziz we need to take stock of where we Social and Governance (ESG) impact. are and continue to assess the As a constituent for FTSE4Good Bursa priorities along our journey. This is Malaysia Index and FTSE4Good Non-Independent Non-Executive extremely critical as we move towards Chairman 9 Key Messages
Sime Darby Property is now more robust, visible and productive than ever. With our renewed focus on operational excellence and cost efficiencies, we are confident that the Group is moving in the right direction to deliver optimum financial performance. With an established industry presence and proven track record, we remain steadfast, resilient and committed to creating value for our multiple stakeholders and partners.
Dato’ Sri Amrin Awaluddin
Group Managing Director’s Review
10 SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018
Moving in the right With our focus on value creation, we are happy to direction to deliver report that we have been able to meet the expectations of not just our optimum financial shareholders, but our multiple performance stakeholders
The Global and Local DEAR SHAREHOLDERS, Environment
017 was a year of ‘transformation’ for The property market continued to be Sime Darby Property, leading us to challenging in Financial Year 2017/2018 unlock the potential of our business, (FY2018) as the global economic uncertainties 2 and financial market volatility weighed on people, technology, processes, innovation and most importantly, the communities where we consumer sentiments. The ongoing trade operate and whom we serve. Despite a huge disputes between the world’s biggest wave of change, and externalities, we started economies continue to raise concerns, with our journey last year with a promise to deliver potential impact on global economic growth. positive financial and non-financial performance. And with our focus on value Closer to home, the Malaysian economy creation, we are happy to report that for the remained strong with a stronger-than- year under review, we have been able to meet expected growth of 5.9 percent in 2017. This the expectations of not just our shareholders, year, the central bank expects the economy but our multiple stakeholders. to grow by 5.0 percent, which will augur well for the property sector.
Early this year, we witnessed a watershed event with the conclusion of the 14th General Election in May 2018. The peaceful transition of power reinforced people’s faith in our maturing country, awakening a sense of optimism towards future growth. The new government has also moved quickly with early measures to remove GST and the announcement of the impending National Housing Policy 2.0, which have also contributed to positive consumer sentiments.
11 Key Messages Group Managing Director’s Review
The Year of Transformation
Since the listing of the Company on 30 November 2017, the Group embarked on an intensive journey to reinvent itself in the pursuit of excellence in Malaysia’s property sector. As a stand-alone listed entity, we are now presented with new opportunities to strengthen our position. We are also encouraged by the new impetus organisation-wide, which is helping us to frame differentiated strategies and approaches to planning and achieving new growth. In the process, we have decided to focus on two key priority areas, which continue to be instrumental in catalysing our progress.
• Transformation 1.0 – 1.5 FTSE4Good Bursa Malaysia Index and Since the listing on Initiatives: FTSE4Good ASEAN 5 Index for the 30 November 2017 We have moved from Phase I of period July 2018 – June 2019. the Group embarked on our transformation journey to Besides, we have already been listed a journey to reinvent Phase II, with clear objectives, on the Dow Jones Sustainability itself in the pursuit of targets, and outcomes. Emerging Market Index (DJSI) excellence in Malaysia’s effective 13 September 2018. While property sector • Value Creation Model: we take pride in the fact that Sime We have also revisited our Darby Property is the only Malaysian Business Model to incorporate real estate company on DJSI, our We are now presented with various aspects of ‘Value Creation’ efforts will be to set new benchmarks new opportunities to in the context of our multiple and set an example for the industry as strengthen our position stakeholders and to include both we progress on our sustainability financial and non-financial metrics agenda. of performance. Selection as a constituent Please refer to the Sustainability for FTSE4Good Bursa In conducting our business profitably, Report section on pages 164 to 185 of the Annual Report for Malaysia Index and we are committed to manage our further information. FTSE4Good ASEAN 5 Index Environmental, Social and Governance (ESG) impacts. Our responsibility for the period July 2018 – towards meeting high standards in June 2019 ESG practices has grown even more with our selection as a constituent for Listed on the Dow Jones Sustainability Emerging Market Index (DJSI) effective 13 September 2018 and is the only Malaysian real estate company in the DJSI
12 SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018
Largest property land Resilient financial Developed some of the country’s owner with a total remaining position, with a net most well-planned townships such developable area of gearing of as Taman Melawati, Subang 20,572 acres 18.0 percent Jaya and Bukit Jelutong
Drivers of Growth
Even in the midst of intensifying competitiveness, demand and supply gaps and the tightening fiscal policies, our efforts are focused on continuously rebalancing the Group’s income by improving operational efficiencies and expanding into new growth areas. We were able to achieve positive results mainly due to three of our most fundamental growth drivers, which also build a compelling proposition for our investors.
• The first is our land bank. Sime Darby Property is the largest property land owner with a total remaining developable area of 20,572 acres, not including the additional 20,602 acres under the Options Agreements with our sister companies i.e., Sime Darby Plantation Berhad and Sime Darby Berhad. While we build on this natural capital, we believe in assuming greater responsibility by managing our land assets. We closely monitor our operations on the ground and minimise any and all negative impacts on the environment, the eco-systems and the communities surrounding our land bank.
• Second is our resilient financial position, with a net gearing of 18.0 percent which gives us the financial flexibility to plan our expansion at a faster rate, if and when required. In other words, we do not lose focus on retaining the value of our capital investments and accelerating income opportunities. We recognise that without financial capital, we will be unable to deploy other capitals for sustainable and planned growth. For instance, our emphasis on human capital and efforts to address material topics such as Occupational Safety and Health and Talent Development positively contribute to enhancing our productivity and the overall performance of our financial capital.
• The third is our intellectual capital, i.e., the strength of our brand, our four decades of experience, domain knowledge, our formidable network, all of which enhance our capacity to innovate and strengthen our brand equity and reputation. For instance, we have developed some of the country’s most well-planned townships such as Taman Melawati, Subang Jaya and Bukit Jelutong, amongst others. These help reinforce our capabilities and the value we can deliver to the communities at large. It is also important to build our social capital and relationships along our value chain.
13 Key Messages Group Managing Director’s Review
Performance of almost 800,000 people, the mall Total revenue is fast becoming an important Highlights lifestyle destination for the The Group has delivered positive RM2,353.1 township of Taman Melawati. financial results for FY2018, with a million total revenue of RM2,353.1 million • In May 2018, the Group announced and Profit after Tax and Non- its partnership with Japan’s Mitsui controlling Interests (PATAMI) of Profit after Tax and Non- & Co. Ltd. and Mitsubishi Estate RM640.0 million mainly due to controlling Interests (PATAMI) Co. Ltd. to develop and lease improved operational efficiencies as industrial facilities. The equal joint well as cost containment measures. venture will develop the bespoke RM640.0 industrial park over 39 acres in million With a 6.4 percent improvement in Bandar Bukit Raja, a highly the core revenue from the previous compared to RM624.0 million connected township in Klang. financial year, Property Development in FY2017 remained the main contributor to the Leisure & Hospitality total Group revenue at 88.9 percent. • During the year, the Group has Property Development also reported also taken steps towards divesting higher PBIT by 10.7 percent driven by • We have launched Serenia City, select non-core hospitality assets, higher sales and development located in Selangor’s southern which include Genting View Resort activities from our flagship projects. growth corridor, which received an and Karri Valley in Australia. overwhelming response. In both Property Investment and Concession Arrangement Leisure and Hospitality, we achieved • In January 2018, we have significant gains from disposal of announced our plans to reorganise • Prior to the listing, the Group had properties. For instance, the disposal the Commercial Assets of the plans to dispose one of our of Malaysia Land Development Battersea Power Station building strategic investment projects Company Berhad (MLDC) contributed to Permodalan Nasional Berhad – Pagoh Education Hub (PEH). to the tune of RM39.6 million. (PNB) and the Employees However, following a critical Provident Fund (EPF). PNB and the review by the Board during the Please refer to the Performance EPF have signed a Heads of Terms year, PEH has been earmarked as a Review on pages 50 to 68 of the with Battersea Phase 2 Holding valuable investment, which will Annual Report for further Company Limited to initiate positively contribute to stable cash information. preliminary negotiations for flows and income annually. purchasing the Commercial Assets. This is a positive development in • The education hub now has more Key Divisional terms of our ability to monetise than 7,000 students and is a key Highlights assets and improve cash flow, catalyst for our Bandar Universiti which in turn can be reinvested in Pagoh township, which enjoys Property Development future developments in Battersea. great connectivity next to the North-South Highway. • Leveraging on our core strength in Property Investment township development, we • Our decision to retain PEH is also focused on identifying • On 26 July 2018, Melawati Mall aligned with our strategy to development opportunities in celebrated its first-year anniversary. extend our services to facilities areas located along the Guthrie With an occupancy rate of 83 management for recurring income Corridor Expressway. During the percent, it is on track to achieve 90 generation. year, we planned new launches in percent occupancy by the end of Elmina, Denai Alam and Bandar 2018. With a population catchment Please refer to the Operations Bukit Raja, with positive response Review on pages 69 to 91 of the for landed properties, despite a Annual Report for further soft market overall. information.
14 SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018
Key Challenges, Opportunities Our innovative Divergent and Strategies Moving Forward Dwelling Design (D3) building methodology will Having joined Sime Darby Property in September 2017, my revolutionise the affordable immediate priority was to ensure the success of the listing. housing industry As a major corporate exercise, it was a much eagerly anticipated event. The demerger of the Sime Darby Berhad conglomerate into three distinct companies was expected to give investors more choices and produce instant These strategies will not only drive sustainable growth in industry-leading corporations. the short, medium, and long-term, but will also help mitigate our top material issues such as product quality Although we may be now exposed to more direct risks, the and people development. successful listing brings with it many new opportunities for achieving organic growth. We are now more focused on our • Product quality can have far reaching impact on our core business and operations in property development and reputation, as well as our expansion plans. The ever- secondly, we now have more clarity on our value changing customer expectations in relation to timely proposition for the investing public. delivery and quality products challenges us to continuously change our market approaches. Externally, As part of our planning exercise, during the year, we have due to price and market volatility, there is always a risk carried out an independent review of our business of increasing costs and diminishing margins in the short- strategies, developed at Group-level, to determine if they term. But in the long-term, owing to our are still relevant and whether they had the right focus to uncompromising stand on quality product, systems and accelerate our growth and strengthen our position as an solutions, we will see an incremental surge in our independent listed entity. From the review, we have development portfolio income. identified the following five strategic priorities – On balance, we will need to be mindful of our risks and aim to reduce our development cycle by optimising Expanding development processes, enhancing our procurement strategy, portfolio income and increasing implementing strategic sourcing and value engineering 1 gross development value through improved design and planning. These in turn will help achieve new efficiencies and cost reduction in 2 Launching new growth areas the long-run. The Sustainability & Quality Management (SQM) Enhancing overall customer Department champions product quality through various 3 experience initiatives and innovative programmes. It actively engages with not just the industry standard setters such Achieving cost and as the Construction Industry Development Board (CIDB), 4 operational efficiencies but also customers to set new benchmarks and change the paradigm of quality. For instance, our innovative Elevating organisational Divergent Dwelling Design (D3) building methodology 5 effectiveness has and will revolutionise the affordable housing industry, where quality comes at a more economical price point. Similarly, our commitment of quality can be reinforced by our consistent performance on Quality Assessment System in Construction (QLASSIC), which has been above the national average for the past eight years. During the year under review, our average QLASSIC score reached a new high of 81 percent, closer to our target of 85 percent by 2020.
15 Key Messages Group Managing Director’s Review
Our People will be the forefront of all meaningful growth
• As one of our most valuable assets, People are and will be the forefront of all meaningful growth – both as drivers and beneficiaries. As a newly listed entity and with our renewed focus on our vision and mission, we need robust people and change management framework. The key challenges that we have been facing are related to Occupational Safety and Health; diversity; upskilling and reskilling to build competencies and capacity; employee and community well-being and of course, people productivity for positive performance. Our long-term strategy is to pre-empt potential issues that could impact our people and communities, and launch targeted programmes for tangible social impact.
During the year, we have recruited new talents in key positions, especially for the senior leadership team as well as at the operational levels. Our multi-pronged approach was to strengthen our manpower for business continuity; infusion of new skills and expertise to meet the demands in our niche areas such as integrated development, succession planning and organic growth.
While focusing on economic returns, our emphasis is also on developing our human capital. Last year, we have brought on board the new Chief People Officer to “Our mid-term business strategies make the organisation more inclusive, by shifting (SHIFT) are supported by 20 specific top-down strategies into bottom-up approaches, and initiatives, which are owned and promoting the overall employee welfare and growth. A major part of this agenda is also to support upskilling implemented by staff across and reskilling of our people for both internal and departments, giving them an opportunity external talent mobility. During the year under review, to demonstrate their learning capacity as we have not only deployed high-potential candidates across internal divisions for cross-pollination of ideas well as their leadership potential, which and skills, but have also provided them exposure to are critical to drive the company towards international best practices through six to twelve- new growth. With SHIFT20, our efforts month secondments and attachments in our flagship projects such as Battersea in the UK. over the next five years will be to transform the company into a leader in Please refer to the Strategic Review section on pages 28 to 49 of the Annual Report for further information. building sustainable communities.
16 SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018
2019 and Beyond
• Although the overall property • Considering the lukewarm bank in strategic locations. Bandar market remains soft, there are mainstream property development Bukit Raja for example is in pockets of demand for reasonably market, we understand the need strategic proximity to the priced products in good and to explore and expand to new country’s biggest port and the well-connected locations, areas for growth. For instance, we Kuala Lumpur International Airport especially for landed properties. see great potential in the and can offer seamless competitive We see an opportunity for the development of industrial advantages to potential industrial Group to increase profitability property. The growth of online developments. from its core property commerce, a resilient domestic development business by economy as well as government • Technology is and will continue to reviewing existing plans. There is initiatives such as the Digital Free shape the future of our business. also room to improve contributions Trade Zone, are supporting It is already having a huge impact from the integrated development demand for industrial properties. on the way customers behave, segment through improved project Our partnership with Japan’s make decisions, and interact with prioritisation. We are also Mitsui to develop a managed businesses. It is also influencing seriously looking at enhancing our industrial park in Bandar Bukit Raja customer expectations of quality business model for a sustainable in Klang has set the stage for us to and services. In the years to come, leisure management services explore more of such opportunities we will invest in building our business. to cater to the increasing demand technological capabilities, mainly in this space. What will work to to drive innovation and improve our advantage is our vast land customer experience.
We see an opportunity for the Acknowledgements Group to increase profitability from its core They say that when you stand alone, you realise what you have in you. Our property development business by journey so far as an independent listed entity has been one of self-discovery, reviewing existing plans and a great amount of motivation to achieve new growth. I am proud to acknowledge the unfaltering role of our people – employees, customers, suppliers, regulatory authorities and our shareholders – in helping us move confidently as a single, solid company well-positioned to emerge as the ‘Leader Technology will in Building Sustainable Communities’. continue to shape the future of our business On behalf of the Management team, we would like to thank Tan Sri Abdul Wahid Omar for his leadership over 10 months, his guidance and positive contributions towards the successful listing of the Company. In the same breath, we express our gratitude to the Board of Directors and shareholders for their confidence and support in us to take on the responsibility of building our brand equity. We also commend the efforts of our colleagues in the senior leadership team and fellow colleagues across the Group, who have left no stone unturned in meeting the set objectives and overcoming many challenges during the financial year. While we congratulate every contributing member across the organisation for a well-served year, we look forward to a more rewarding and sustainable future for Sime Darby Property.
Dato’ Sri Amrin Awaluddin
Group Managing Director
17 Group Chief Financial Officer’s Statement
DATUK TONG POH KEOW Group Chief Financial Officer
In its first year of listing, Sime Darby Property has stamped its mark as a premier property developer with a strong track record of developing landed to strata properties. Notwithstanding the market challenges and the internal restructuring following from the Sime Darby Berhad Pure Play exercise, the Group has delivered a commendable set of results in its core business of property development. The resilience of the Group, amid the soft property market, is backed by the strategic location of our land bank as evidenced by the strong demand in our flagship townships coupled with our strong branding as a Developer of vibrant and sustainable communities. We are confident that the Group is well-positioned to set new benchmarks in business, as well as to deliver strong financial and non-financial performance, in the years to come.
DEAR STAKEHOLDERS, e have delivered a resilient Our key operational highlights during and low-yielding and non-strategic result for the financial year the year under review include the land bank to value accretion W(FY2018) amidst the following: assets; challenges of volatile market • An internal restructuring, which • An effective cost management conditions and our internal run for included acquisition of new land system, with appropriate measures public listing. Our strong performance bank, increase in share capital, to prudently manage the financing was evidenced by a healthy operating novation for strategic financing costs and costs of operations profit, earnings per share, and the and operational improvements; across the board; and overall gearing ratio. The Group embraced its listing status with a • An asset monetisation strategy, • A robust risk management clear roadmap and strategy to unlock which helped to shift investment framework and controls to ensure and create greater value for its in under-performing investments the Group’s financial health and stakeholders. returns.
18 SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018
A 5.2 percent increase With a clear focus on performance, in Total Assets mainly we have been able to report good due to higher inventories and results and effective solutions in all joint ventures in spite of lower our business verticals. For one, Property Development continued to cash and cash equivalents be the main contributor to the Group’s total revenue at 88.9 percent. A 35.6 percent We are positive that the Under Property Investment, though the asset portfolio size shrunk, we reduction in Total Group’s strategic capital management objective, made game-changing decisions to Liabilities, largely due to retain certain assets and extend our which is to maintain a prudent net the capitalisation of services for recurring income gearing level and optimise the intercompany loans, net of generation opportunities. Similarly, capital structure can ensure a we also reorganised some of our increase in borrowings competitive cost of capital and international commercial assets and in maximise shareholders’ value. In the process, monetised the assets, A 51.3 percent increase addition, the objective is also to improved cash flows and reinvested in put in place an efficient funding in due to future developments. In the Leisure Total Equity strategy, to ensure the Group and Hospitality segment, during the the capitalisation of continues to remain resilient in year, the Group has taken major steps intercompany loans the extremely dynamic and to divest select non-core hospitality assets, which was a prudent move in volatile property market. terms of improving our overall financial position. Going Forward Please refer to the Performance Review for details on pages 50 to As a listed entity, our efforts will be channelled towards balancing risk and 68 of the Annual Report. return in all our development activities and towards achieving and maintaining a strong financial position. We will continue to leverage on our asset monetisation strategy to unlock the potential and value of current and future Financial Position assets, in addition to building a strategic portfolio of investment properties to diversify as well as to build new streams of revenue or recurring income. In the As at end FY2018, the Group’s gross long-term, all these steps will contribute additional value to our portfolio, with gearing ratio was at 25.5 percent, promising returns for our shareholders. which is a relatively moderate level, considering various contingency The Group is focusing on our five strategic priorities and the SHIFT20 initiatives requirements such as the impact of a which will be instrumental in reducing our development capital, generating prolonged subdued property market proceeds from disposal of low-yielding assets, reduction in costs, and overall, and also the capacity to seize higher returns on capital. opportunity for good value enhancement acquisition. We have The long-term strategy of the Group is to ensure that the Group grows stronger, also achieved a net cash proceeds and in terms of its brand value, as well as financial performance i.e. our commitment gains on disposals, which amounted to generate strong and stable earnings consistently year-on-year and staying on to RM773.9 million and RM405.5 course by optimising our resources to strengthen financial health. million respectively. This is aligned to the Group’s asset monetisation strategy and was also well timed to The Company has on 26 February 2018 announced the proposed change of its recycle the proceeds for the Group’s financial year end to 31 December from 30 June currently. As such, the next operational requirements, particularly financial year will be for a six-month period ending 31 December 2018, followed in a soft property market. Though the by the new financial year which will be from 1 January 2019 to 31 December Group’s total cash balance of 2019. RM749.4 million, was lower by RM379.8 million from the previous financial year, the overall Group’s balance sheet remained on solid Datuk Tong Poh Keow footing.
Group Chief Financial Officer
19 Corporate Overview 2018 Key Highlights
BUSINESS HIGHLIGHTS
Selected as Index Number of units sold Component of the Dow Jones units Sustainability Indices for Sime Darby Property’s 3,045 2018/2019
Inclusion into FTSE4Good The only real estate company in Index for 2018/2019 Malaysia FTSE4Good Bursa Member of Dow Jones Sustainability Malaysia Index Delivery of Emerging Markets Index completed units FTSE4Good ASEAN 5 Index in FY2018
2,305 units mainly in Elmina, Taman Melawati, KL East and Putra Heights
1st Year Anniversary 27 July 2018 Strategic JV Large student population in 50:50 with Mitsui Co. Ltd Bandar Universiti Pagoh and Mitsubishi Electric students 83 percent Occupancy >7,000 Rate as at July 2018 Sale of Industrial in Pagoh Education Hub Components 4 institutions 50 acres of industrial land of higher learning 8 million Shoppers sold to Vinda Group
AWARDS AND ACHIEVEMENT
Top 13 High Top 3 Ranked Qlassic Developers Achievement Property Gold Award of the Awards Developers Property Year Awards Sector
20 SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018
2018 2 1 2018 28
201 2 10 201 888 8
201 1 1 201 1 220 FINANCIAL HIGHLIGHTS 201 22 201 8
201 2 2 8 201 288 Revenue PATAMI Total Equity RM2,353.1 million RM640.0 million RM9,965.4 million
Net2018 Assets per share attributable 0 0 Healthy Gross Debt-to-Equity2018 ratio Net Sales Value to Owners of the Company 201 2 0 25.5 percent 201 RM2,250.0 2 2 million RM1.40201 8 2 201
201 1 8 201 2
201 1 2 201 8 8
SEGMENTAL HIGHLIGHTS
Revenue (RM’million) PBIT (RM’million) Net Assets (RM’million)
12 101 1 1 2 1 1 2 2 122 2 12 1 1 2
2 0 0 8 0 10 0 2,353.1 8 682.5 2 12,174.2 8
P P L D I H A
Property Development Property Investment Leisure and Hospitality Concession Arrangement’s recorded higher PBIT registered PBIT of achieved PBIT of PBIT rose sixfold RM630.4 million RM2.4 million RM13.2 million RM36.5 million
21 Corporate Overview Key Milestones
Sime UEP is Sime UEP, the established first Malaysian through the developer to
1984 acquisition of a 2000 receive the MS large stake in ISO 14000 United Estates Environmental Projects Bhd. Management System.
Negara Subang Jaya Guthrie Property Properties, receives the launches Denai Alam subsidiary of International and wins the
1972 Golden Hope 1995 FIABCI Prix 2003 Institute of Plantations, d’Excellence Planners’ Planning launches Taman Award. Innovation Award Melawati. for Township.
Guthrie Property The launch of Development Bandar Bukit Holding Bhd is Raja township, established and covering 4,333 1990 2002 the Bukit Jelutong acres. development commences.
The launch of Bukit Jelutong Completion of Subang Jaya wins Best the Guthrie township. Planned Corridor
1974 1997 Township 2005 Expressway Award from which connects the Institute of Shah Alam to Town Planners Rawang. in Malaysia.
22 SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018
The merger of Sime Darby • Sime Darby Property, SP Setia and EPF acquires the iconic Battersea Power Bhd, Kumpulan Guthrie Station site in London for £400 million. Bhd and Golden Hope • Sime Darby Property launches the 5,000-acre freehold City of Elmina township.
2007 Plantations Bhd. 2012 • Sime Darby Property signs concession agreements with the Government of Malaysia and four higher learning institutions to build the country’s first multi- varsity education hub in Pagoh, Johor. Launch of Sime Darby Property • Sime Darby Property Mobile Application enters into a joint venture with 2016 CapitaMalls Asia to develop Melawati Mall in Taman Melawati.
Sime Darby Property Sime Darby Property forms a 50:50 joint launches Rumah Mampu venture with UEM Milik Johor at Taman Sunrise to develop • Pagoh Education Hub
2014 Pasir Putih in Pasir completion in May 2017. Radia, a commercial Gudang. development in Bukit Jelutong. • Sime Darby Property 2010 opens Melawati Mall, a Sime Darby new iconic lifestyle mall Property in Taman Melawati. launches first • Sime Darby Property
2011 affordable 2017 housing project makes its debut on the in Bandar Main Board of Bursa Ainsdale, in Malaysia Securities collaboration Berhad on 30 November with PR1MA. 2017.
23 Corporate Overview Group Corporate Structure (Operating Entities) As at 30 August 2018
MALAYSIA: WHOLLY-OWNED SUBSIDIARIES MALAYSIA: NON-WHOLLY OWNED SUBSIDIARIES
Golfhome Development Sdn Bhd Harvard Golf Resort (Jerai) Berhad Golftek Development Sdn Bhd Sime Darby Brunsfield Holding Sdn Bhd Group Harvard Hotel (Jerai) Sdn Bhd Sime Darby Nilai Utama Sdn Bhd Impian Golf Resort Berhad Sime Darby Property Selatan Sdn Bhd Group Ironwood Development Sdn Bhd Kuala Lumpur Golf & Country Club Berhad MVV Holdings Sdn Bhd MALAYSIA: JOINT VENTURES Sime Darby Ainsdale Development Sdn Bhd Sime Darby Ampar Tenang Sdn Bhd PJ Midtown Development Sdn Bhd Sime Darby Ara Damansara Development Sdn Bhd Sime Darby CapitaLand (Melawati Mall) Sdn Bhd Sime Darby Augsburg (M) Sdn Bhd Sime Darby MIT Development Sdn Bhd Group Sime Darby Builders Sdn Bhd Sime Darby Sunrise Development Sdn Bhd Sime Darby Chemara Sdn Berhad Sime Darby Elmina Development Sdn Bhd Sime Darby Johor Development Sdn Bhd FOREIGN: WHOLLY-OWNED SUBSIDIARIES Sime Darby KLGCC Development Sdn Bhd Darby Park (Management) Pte Ltd Group Sime Darby Kulai Development Sdn Bhd Sime Darby London Limited Sime Darby Landscaping Sdn Bhd Sime Darby Property (Hong Kong) Limited Sime Darby Lukut Development Sdn Bhd Sime Darby Property Singapore Limited Group Sime Darby Melawati Development Sdn Bhd Sime Darby Property (Vietnam) Pte Ltd Group Sime Darby Pagoh Development Sdn Bhd Sime Darby Paralimni Sdn Bhd Sime Darby Properties (Sabah) Sdn Bhd FOREIGN: JOINT VENTURES Sime Darby Properties (Selangor) Sdn Bhd Sime Darby Properties Realty Sdn Bhd Battersea Power Station Development Company Limited Sime Darby Property (Bukit Selarong) Sdn Bhd Group Sime Darby Property (Bukit Tunku) Sdn Bhd Battersea Power Station Estates Limited Sime Darby Property (Lembah Acob) Sdn Bhd Battersea Project Holding Company Limited Group Sime Darby Property (Nilai) Sdn Bhd Sime Darby Property (Subang) Sdn Bhd Sime Darby Property (Sungai Kapar) Sdn Bhd Sime Darby Property (USJ) Sdn Bhd Sime Darby Property (Utara) Sdn Bhd Sime Darby Property Holdings Sdn Bhd Sime Darby Property Management Sdn Bhd Sime Darby Serenia Development Sdn Bhd Sime Darby Sungai Kantan Development Sdn Bhd Sime Darby Urus Harta Sdn Bhd Sime Darby USJ Development Sdn Bhd Sime Wood Industries Sdn Bhd Stableford Development Sdn Bhd Syarikat Perumahan Guthrie Sdn Bhd
Note: For the full list of entities, please refer pages 297 to 303, Note 46 List of Subsidiaries, Joint Ventures and Associates
24 SIME DARBY PROPERTY BERHAD – ANNUAL REPORT 2018 Corporate Information
Group Managing Director Auditors Board of Directors Dato’ Sri Amrin Awaluddin PricewaterhouseCoopers PLT Tan Sri Dr. Zeti Akhtar Aziz (LLP0014401-LCA & AF1146) (Non-Independent Non-Executive Chairman) Level 10, 1 Sentral Secretary Jalan Rakyat Kuala Lumpur Sentral Dato’ Sri Amrin Awaluddin Moriami Mohd (MAICSA 7031470) (Group Managing Director) P.O. Box 10192 50706 Kuala Lumpur Datuk Tong Poh Keow Malaysia (Executive Director/ Registered Office Tel : +603 2173 1188 Group Chief Financial Officer) Level 10, Block G Fax : +603 2173 1288 No. 2, Jalan PJU 1A/7A Dato’ Jaganath Derek Steven Ara Damansara, PJU 1A Sabapathy 47301 Petaling Jaya (Senior Independent Non-Executive Selangor Darul Ehsan Form of Legal Entity Director) Malaysia Incorporated on 15 September 1973 as a private company limited by Tengku Datuk Seri Ahmad Shah Tel : +603 7849 5000 shares under the Companies Act, Alhaj ibni Almarhum Sultan Fax : +603 7849 5688 1965 and deemed registered under Salahuddin Abdul Aziz Shah Alhaj E-mail : property.communications the Companies Act, 2016. (Independent Non-Executive @simedarbyproperty.com Director) Website : https://www. Converted into a public company simedarbyproperty.com Dato’ Johan Ariffin limited by shares on 2 October (Independent Non-Executive 2003. Director) Share Registrar Datuk Dr. Mohd Daud Bakar Tricor Investor & Issuing House Stock Exchange Listing (Non-Independent Non-Executive Services Sdn Bhd Listed on the Main Market of Bursa Director) (Company No. 11324-H) Malaysia Securities Berhad since 30 November 2017 Dato’ Seri Ahmad Johan Office: Mohammad Raslan Unit 32-01, Level 32, Tower A Stock Code : 5288 (Independent Non-Executive Vertical Business Suite Stock Name : SIMEPROP Director) Avenue 3, Bangsar South No. 8, Jalan Kerinchi Datin Norazah Mohamed Razali 59200 Kuala Lumpur (Independent Non-Executive Wilayah Persekutuan Place of Incorporation Director) Malaysia and Domicile Encik Rizal Rickman Ramli Tel : +603 2783 9299 Malaysia (Non-Independent Non-Executive Fax : +603 2783 9222 Director) E-mail : [email protected]
Customer Service Centre: Unit G-3, Ground Floor Vertical Podium Avenue 3, Bangsar South No. 8, Jalan Kerinchi 59200 Kuala Lumpur Wilayah Persekutuan Malaysia
25 Battersea Power Station The development now underway at Battersea Power Station (BPS) has transformed this iconic industrial monument into a modern masterpiece with innovative and groundbreaking spaces.
Our Divergent Dwelling Design (D3) building methodology is expected to revolutionise aff ordable homes by delivering quality homes within a shorter timeframe. Our game-changing Sime Darby Property Mobile App allows us to engage with a new market of young professionals digitally.
Battersea Power Station A P O R Y S I SI B R P T
I BLR 000 0 000 8 1 2 00 1 0 0 0 000 0 000 0 8 000 0 000 120 0 80 1 0 0 80 000 0 000 100 0 80 82 2 8 1 0 1 0 2 8 000 20 000
80 0 8 RM 0 0 0 0 0 000 10 000 2 0 0 0 000 0 2 A Y