JohorLand BERHAD 12379-K

Laporan Tahunan 2008 Annual Report Rationale Rasional

“The cactus rose symbolises durability and sustainability – JLand’s core development and corporate philosophy. Its radiating petals denote symmetry and orderly growth – the way JLand has progressed from building house units to residential neighbourhoods to thriving township. The succulent petals of the plant depict JLand’s capacity to endure the challenging economic climate.”

“Ros kaktus melambangkan ketahanan serta kelestarian – iaitu teras kepada pembangunan dan falsafah korporat JLand. Kelopaknya yang bersemarak melambangkan pertumbuhan yang sekata dan tersusun – seperti mana JLand berkembang maju daripada membina unit-unit rumah kepada perjiranan kediaman dan seterusnya kepada perbandaran yang pesat membangun. Ketebalan kelopak tumbuhan ini adalah gambaran kepada keupayaan JLand untuk mengharungi persekitaran ekonomi yang serba mencabar.” NORTH SOUTH EXPRESSWAY

ISKANDAR MALAYSIA

Senai Airport

BANDAR DATO’ ONN

To Kota Tinggi

To Second Link

Tg. Langsat Port

Pasir Gudang Port

SINGAPORE

Tg. Pelepas Second Link Port

2 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Corporate Vision Visi Korporat

To be the LEADING property company Menjadi syarikat PENERAJU di sektor hartanah

Board of Directors Statement To Lembaga Pengarah Shareholders Penyata Kepada Para 10 Pemegang24 Saham Laporan Tahunan 2008 Annual Report • Johor Land Berhad 3

2008 Corporate Diary Financial Statements Diari Korporat44 2008 64

Contents Kandungan

02 Corporate Vision 24 Statement to Shareholders 130 Shareholdings’ Statistics Visi Korporat Penyata Kepada Para 132 Notice of Annual General 04 Corporate Profile Pemegang Saham Meeting Profil Korporat 44 2008 Corporate Diary 137 Notis Mesyuarat Agung 06 5 Years’ Financial Performance Diari Korporat 2008 Tahunan Prestasi Kewangan 5 Tahun 46 Audit Committee Report 142 Statement Accompanying 08 2008 Financial Calendar 50 Statement on Corporate The Notice of Annual General Kalendar Kewangan 2008 Governance Meeting 09 Corporate Information 56 Statement on Internal 143 Penyata Bersama Notis Maklumat Korporat Control Mesyuarat Agung Tahunan 10 Board of Directors 60 Statement on Directors’ 144 Corporate Directory Lembaga Pengarah Responsibility • Proxy Form 12 Profile of the Board of Directors 61 Additional Disclosure Borang Proksi Profil Lembaga Pengarah Information 22 Corporate Structure 64 Financial Statements Struktur Korporat 122 Location of Land Bank and 23 Teraju Committee Projects Jawatankuasa Teraju 123 List of Properties 4 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Corporate Profile Profil Korporat

Johor Land Berhad (JLand) is a successful property developer listed on the Main Board of Bursa Malaysia Securities Berhad with a strong track record of building thriving communities in Johor going back to 1972. One of its key achievements is the development of residential neighbourhoods in the Township of Pasir Gudang.

JLand’s long term commitment to sustainable development and its ability to respond to the needs of the local market has made JLand a dominant property developer in Johor. This commitment and this ability is made possible through understanding homeowners’ need for quality and functionality. Our success is in giving our customers value for their money and assets with potential for appreciation.

The company currently has a prime land bank of over 3,000 acres in Johor. In its endeavour to be a premier property company in the country, it intends to expand its presence throughout Malaysia and the region and to widen its involvement in other sectors of the property industry. JLand is prepared to develop viable parcels of land in areas outside its present area of operation and to participate in acquiring, developing and owning investment properties.

Johor Land Berhad (JLand) merupakan pemaju hartanah berjaya yang disenaraikan di Papan Utama Bursa Malaysia Securities Berhad dan mempunyai rekod pencapaian yang kukuh dalam membangunkan komuniti yang berkembang di Johor sejak tahun 1972. Salah satu pencapaian utamanya adalah pembangunan kediaman perjiranan di Perbandaran Pasir Gudang.

Komitmen jangka panjang JLand untuk pembangunan yang berterusan dan keupayaannya bertindak balas terhadap keperluan pasaran tempatan menjadikan JLand sebuah pemaju hartanah yang terutama di Johor. Komitmen dan keupayaan ini tercapai melalui kefahaman terhadap kehendak pemilik kediaman untuk kualiti dan fungsi kediaman. Kejayaan kami adalah dalam memberi pulangan nilai wang dan potensi peningkatan nilai aset kepada pelanggan- pelanggan kami.

Syarikat kini mempunyai lebih dari 3,000 ekar simpanan tanah utama di Johor. Dalam usahanya untuk menjadi syarikat hartanah yang unggul di negara ini, JLand berhasrat untuk memperluaskan aktivitinya ke seluruh Malaysia dan rantau ini serta memperluaskan penglibatannya dalam sektor-sektor lain dalam industri hartanah. JLand bersedia untuk membangunkan tanah-tanah yang berdaya maju di luar kawasan operasi sedia ada dan untuk melibatkan diri dalam mengambilalih, membangun dan memiliki pelaburan hartanahnya sendiri. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 5

Johor Land Berhad (JLand) is a successful property developer listed on the Main Board of Bursa Malaysia Securities Berhad Johor Land Berhad (JLand) merupakan pemaju hartanah berjaya yang disenaraikan di Papan Utama Bursa Malaysia Securities Berhad 6 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

5 Years’ Financial Performance Prestasi Kewangan 5 Tahun

RM’000 2004 2005 2006 2007 2008

Revenue 108,416 88,783 74,660 63,356 138,694 Perolehan

Profit Before Tax 36,226 22,261 22,099 8,268 25,289 Keuntungan Sebelum Cukai

Total Assets 721,552 755,777 757,365 809,887 894,636 Jumlah Aset

Shareholders’ Equity 618,826 631,903 639,962 640,466 653,331 Ekuiti Pemegang Saham

Earnings Per Share (sen) 12.54 7.17 7.68 2.90 8.30 Pendapatan Sesaham (sen)

Net Assets Per Share (sen) 6.17 5.22 5.28 5.29 5.40 Aset Bersih Sesaham (sen) Laporan Tahunan 2008 Annual Report • Johor Land Berhad 7

RM (’000) Revenue RM (’000) Profit Before Tax RM (’000) Perolehan RM (’000) Keuntungan Sebelum Cukai

2008 138,694 2008 25,289

2007 63,356 2007 8,268

2006 74,660 2006 22,099

2005 88,783 2005 22,261

2004 108,416 2004 36,226

RM (’000) Total Assets RM (’000) Shareholders’ Equity RM (’000) Jumlah Aset RM (’000) Ekuiti Pemegang Saham

2008 894,636 2008 653,331

2007 809,887 2007 640,466

2006 757,365 2006 639,962

2005 755,777 2005 631,903

2004 721,552 2004 618,826

Sen Earning Per Share Sen Net Assets Per Share Sen Pendapatan Sesaham Sen Aset Bersih Sesaham

2008 8.30 2008 5.40

2007 2.90 2007 5.29

2006 7.68 2006 5.28

2005 7.17 2005 5.22

2004 12.54 2004 6.17 8 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

2008 Financial Calendar Kalendar Kewangan 2008

27/02/2008 Quarterly report on consolidated results for the financial period ended 31/12/2007. Laporan suku tahun kewangan yang disatukan bagi tempoh berakhir 31/12/2007.

14/04/2008 Declaration of final dividend for financial year 2007. Pengisytiharan dividen akhir bagi tahun kewangan 2007.

24/04/2008 Notice of 33rd Annual General Meeting and Extraordinary General Meeting. Notis Mesyuarat Agung Tahunan kali ke-33 dan Mesyuarat Agung Luarbiasa.

21/05/2008 33rd Annual General Meeting & Extraordinary General Meeting. Mesyuarat Agung Tahunan kali ke-33 & Mesyuarat Agung Luarbiasa.

21/05/2008 Quarterly report on consolidated results for the financial period ended 31/03/2008. Laporan suku tahun kewangan yang disatukan bagi tempoh berakhir 31/03/2008.

26/08/2008 Quarterly report on consolidated results for the financial period ended 30/06/2008. Laporan suku tahun kewangan yang disatukan bagi tempoh berakhir 30/06/2008.

26/11/2008 Quarterly report on consolidated results for the financial period ended 30/09/2008. Laporan suku tahun kewangan yang disatukan bagi tempoh berakhir 30/09/2008.

03/12/2008 Declaration of interim dividend for financial year 2008. Pengisytiharan dividen interim bagi tahun kewangan 2008.

31/12/2008 Date of entitlement for interim dividend 2008. Tarikh kelayakan menerima dividen interim 2008. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 9

Corporate Information Maklumat Korporat

Board of Directors Lembaga Pengarah Company Secretaries / Setiausaha-setiausaha TAN SRI DATO’ MUHAMMAD ALI Syarikat HASHIM Chairman / Pengerusi JAMALLUDIN BIN KALAM Non Independent Non Executive LS 02710 Chairman Pengerusi Bukan Bebas Bukan Eksekutif IDHAM JIHADI BIN ABU BAKAR ACIS (MAICSA 7007381) MOHD TALHAR BIN ABDUL RAHMAN Deputy Chairman / Timbalan Pengerusi Non Independent Non Executive Deputy Chairman REGISTERED OFFICE STOCK EXCHANGE LISTING Timbalan Pengerusi Bukan Bebas Bukan PEJABAT BERDAFTAR PENYENARAIAN BURSA SAHAM Eksekutif Level 2, Persada Johor Main Board of Bursa Malaysia Securities International Convention Centre Berhad A.F.M SHAFIQUL HAFIZ Managing Director / Pengarah Urusan Jalan Abdullah Ibrahim Papan Utama Bursa Malaysia Securities 80000 Johor Bahru Berhad KUA HWEE SIM • Johor, Malaysia Independent Non Executive Director Tel : 07-219 2692 Pengarah Bebas Bukan Eksekutif Fax/Faks : 07-223 3175 AUDITORS JURUAUDIT DATO HJ HASSAN BIN HJ MOHD YUNOS • KPMG Independent Non Executive Director SHARE REGISTRAR Pengarah Bebas Bukan Eksekutif PENDAFTAR SAHAM Pro Corporate Management Services PRINCIPAL BANKERS DR MOHD HAFETZ BIN AHMAD Sdn Bhd BANK-BANK UTAMA Independent Non Executive Director Pengarah Bebas Bukan Eksekutif (Company No. 349501-M) Malayan Banking Berhad Suite 2, 17th Floor Bank Muamalat Malaysia Berhad LUKMAN BIN HJ. ABU BAKAR • Kompleks Tun Abdul Razak Non Independent Non Executive Director Jalan Wong Ah Fook Pengarah Bukan Bebas Bukan Eksekutif 80000 Johor Bahru ABDUL MALEK BIN TALIB Johor, Malaysia Non Independent Non Executive Director Tel : 07-222 5044 Pengarah Bukan Bebas Bukan Eksekutif Fax/Faks : 07-222 3044 E-mail : [email protected] YUSOF BIN RAHMAT Non Independent Non Executive Director Pengarah Bukan Bebas Bukan Eksekutif

• Audit Committee / Jawatankuasa Audit 10 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Board of Directors Lembaga Pengarah

Tan Sri Dato’ Muhammad Ali Hashim (Chairman / Pengerusi)

A.F.M Shafiqul Hafiz (Managing Director / Pengarah Urusan)

Mohd Talhar Bin Abdul Rahman (Deputy Chairman / Timbalan Pengerusi)

Kua Hwee Sim Laporan Tahunan 2008 Annual Report • Johor Land Berhad 11

Dato Hj Hassan Bin Hj Mohd Yunos Abdul Malek Bin Talib

Lukman Bin Hj. Abu Bakar Yusof Bin Rahmat

Dr Mohd Hafetz Bin Ahmad 12 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Profile of the Board of Directors Tan Sri Dato’ Muhammad Ali Hashim, aged 62, a Malaysian, Profil Lembaga Pengarah is a Non Independent Non Executive Chairman of JLand. Tan Sri was appointed to the Board on 1 January 2006.

Tan Sri Dato’ Muhammad Ali Hashim, berusia 62 tahun, warganegara Malaysia, merupakan Pengerusi Bukan Bebas Bukan Eksekutif JLand. Tan Sri telah dilantik ke Lembaga Pengarah pada 1 Januari 2006.

Tan Sri is the President and Tan Sri adalah Presiden dan Ketua Eksekutif Chief Executive Officer Kumpulan Johor Corporation (JCorp), perbadanan (CEO) of Johor Corporation induk JLand, sejak Januari 1982. (JCorp), the ultimate holding corporation of JLand, and Beliau berkelulusan Ijazah Sarjana Muda Ekonomi has held that position since (Kepujian) dari Universiti Malaya pada tahun 1969 January 1982. dan telah menyertai Program Eksekutif Kanan, Stanford University, Amerika Syarikat pada tahun He graduated from the 1985. Tan Sri telah dianugerahkan Ijazah Kehormat University of Malaya with a Doktor Pengurusan dari Universiti Teknologi Malaysia Bachelor of Economics (UTM) pada 19 Ogos 2000; Ijazah Kehormat Doktor (Honours) degree in 1969 Keusahawanan dari Universiti Teknologi Mara (UiTM) and participated in the pada 24 Mei 2007; dan Ijazah Kehormat Doktor S e n i o r E x e c u t i v e Falsafah Pengurusan Teknologi dari Universiti Tun Programme, Stanford Hussien Onn Malaysia (UTHM) pada 2 September University, USA in 1985. 2007. Tan Sri was conferred the Honorary Doctorate of Berkeperibadian gigih dan cekal, tinggi semangat Management by Universiti keusahawanan serta berdaya kepimpinan Teknologi Malaysia (UTM) berwawasan, Tan Sri telah membina JCorp sehingga on 19 August 2000; menjadi sebuah konglomerat Malaysia yang unggul Honorary Doctorate in yang memiliki lebih dari 250 buah syarikat, dengan 8 E n t r e p r e n e u r s h i p b y buah tersenarai di Bursa Malaysia Securities Berhad Universiti Teknologi dan sebuah lagi di Bursa Saham London. Permodalan Mara (UiTM) on 24 May pasaran bagi saham-saham milik JCorp sehingga 2 0 0 7 ; a n d H o n o r a r y Disember 2008 adalah berjumlah RM3.7 bilion. Doctorate in Technology Keunggulan Kumpulan JCorp yang menerajui Management by Universiti Tan Sri Dato’ pelbagai bidang telah dapat memberikan peluang Tun Hussien Onn Malaysia (UTHM) on 2 September kerjaya kepada lebih 50,000 orang anggota pekerja. Muhammad Ali 2007. Hashim Sebagai Presiden dan Ketua Eksekutif Kumpulan Chairman / Pengerusi Tan Sri’s tenacity, business acumen and entrepreneurial leadership has enabled JCorp to JCorp, Tan Sri telah berjaya mengemudikan Kumpulan grow into one of Malaysia’s leading conglomerates dalam menghadapi cabaran bisnes terutama ketika with more than 250 companies, 8 of which are listed JCorp dilanda Krisis Ekonomi Asia pada tahun 1997. on Bursa Malaysia Securities Berhad and another on Pada tahun 2006-2007, JCorp melalui Kulim (Malaysia) the London Stock Exchange. Market capitalisation of Berhad telah berjaya mengambilalih dua syarikat JCorp’s portion of PLC shares stood at RM3.7 billion tersenarai iaitu QSR Brands Berhad dan KFC Holdings at end 2008. This highly diversified Group offers (Malaysia) Bhd, berjaya mengatasi tentangan yang meaningful career opportunities to more than 50,000 hebat yang juga telah menjadi satu mercu tanda di employees. dalam pengambilalihan korporat di Malaysia.

As President and CEO of JCorp Group, Tan Sri had JCorp telah berjaya menguruskan satu-satunya pihak also successfully steered the Group through extreme berkuasa tempatan Malaysia yang diuruskan business challenges, especially when the JCorp berteraskan prinsip swasta, iaitu Majlis Perbandaran Group was hard hit by the 1997 Asian Crisis. In Pasir Gudang (MPPG) (dahulunya dikenali sebagai 2006-2007, JCorp through Kulim (Malaysia) Berhad Pihak Berkuasa Tempatan Pasir Gudang), dengan had also successfully acquired two PLC’s namely Tan Sri selaku Presiden yang bertanggungjawab QSR Brands Berhad and KFC Holdings (Malaysia) sebagai Datuk Bandar daripada Januari 1982 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 13

Bhd, overcoming a protracted hostile challenge. This sehingga Julai 2008. JCorp merupakan agensi utama had led to the exercise becoming one of Malaysian yang bertanggungjawab ke atas pembangunan Pasir landmark corporate acquisitions. Gudang sehingga berjaya dimajukan menjadi sebuah bandar perindustrian yang unggul dan dinamik di JCorp has also successfully managed Malaysia’s one Malaysia. MPPG telah menempa sejarah dengan and only ‘market-driven’ local authority, namely the menjadi Pihak Berkuasa Tempatan di Malaysia yang Pasir Gudang Municipal Council (PGMC) (previously pertama menerbitkan Bon Mudharabah dengan known as Pasir Gudang Local Authority), with Tan penarafan tiga ‘A’ oleh Ratings Agency Malaysia Sri as President with mayorial responsibilities from (RAM). January 1982 up to July 2008. JCorp was the single most important agency responsible for Pasir Gudang’s Tan Sri adalah Pengerusi Kulim (Malaysia) Berhad, development into one of Malaysia’s vibrant and KPJ Healthcare Berhad, QSR Brands Berhad, KFC dynamics industrial townships. PGMC made history Holdings (Malaysia) Bhd dan Sindora Berhad, by becoming the first business-driven Local Authority syarikat-syarikat di dalam Kumpulan JCorp yang in Malaysia to issue a Mudharabah Bond rated triple tersenarai di Papan Utama Bursa Malaysia Securities ‘A’ by Ratings Agency Malaysia (RAM). Berhad. Tan Sri juga adalah Pengerusi Damansara Realty Berhad, syarikat sekutu JCorp yang tersenarai Tan Sri sits as Chairman of Kulim (Malaysia) Berhad, di Papan Utama Bursa Malaysia Securities Berhad. KPJ Healthcare Berhad, QSR Brands Berhad, KFC Holdings (Malaysia) Bhd and Sindora Berhad which Tan Sri juga aktif sebagai Ahli Majlis Lembaga are JCorp’s subsidiaries listed on the Main Board of Pembangunan Industri Malaysia (MIDA), Presiden Bursa Malaysia Securities Berhad. Tan Sri also sits Majlis Pelayang Malaysia dan Presiden Persatuan as Chairman of Damansara Realty Berhad, an Pelayar Malaysia, Naib Presiden Dewan Perdagangan associate company of JCorp listed on the Main Islam Malaysia (DPIM), Pengerusi Biro Korporat Board of Bursa Malaysia Securities Berhad. DPIM dan Pengerusi Kumpulan Waqaf An-Nur Berhad, sebuah institusi waqaf Islam yang menerajui Tan Sri is also active as a Council Member of program “CSR” Kumpulan JCorp, termasuk Konsep Malaysian Industrial Development Authority (MIDA), Waqaf Korporat yang unik yang dimulakan oleh President of the Malaysian Kite Council and President JCorp. Beliau adalah Pengerusi Damansara REIT of Malaysian Yachting Association, Vice President of the Malaysian Islamic Chamber of Commerce (MICC) Managers Sdn Bhd dan juga Pengerusi dan/atau and Chairman of the MICC Corporate Bureau and Pengarah di dalam beberapa buah syarikat lain Chairman of Kumpulan Waqaf An-Nur Berhad, an dalam Kumpulan JCorp. Islamic endowment institution that spearheads JCorp Group’s CSR programs, including the unique Selain daripada yang telah dimaklumkan, beliau tidak Corporate Waqaf Concept initiated by JCorp. He is mempunyai sebarang hubungan kekeluargaan the Chairman of Damansara REIT Managers Sdn dengan mana-mana pengarah dan/atau pemegang Bhd and also the Chairman and/or Director of several saham utama JLand. Beliau juga tidak mempunyai other companies within the JCorp Group. sebarang kepentingan peribadi di dalam sebarang urusan perniagaan yang melibatkan JLand. Beliau Other than as disclosed, he does not have any tidak pernah dijatuhkan hukuman atas sebarang family relationship with any director and/or major kesalahan. Beliau telah menghadiri kesemua empat shareholder of JLand. He has no personal interest in (4) Mesyuarat Lembaga Pengarah Syarikat bagi any business arrangement involving JLand. He has tahun kewangan berakhir 31 Disember 2008. not been convicted for any offences. He attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008. 14 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Profile of the Board of Directors Mohd Talhar Bin Abdul Rahman, aged 69, a Malaysian, is a Profil Lembaga Pengarah Non Independent Non Executive Director and also the Deputy Chairman of JLand. He was appointed as a Director of JLand on 15 April 1996.

Mohd Talhar Bin Abdul Rahman, berusia 69 tahun, warganegara Malaysia, merupakan Pengarah Bukan Bebas Bukan Eksekutif dan juga sebagai Timbalan Pengerusi JLand. Beliau telah dilantik sebagai Pengarah JLand pada 15 April 1996.

On 1 February 2001, he Pada 1 Februari 2001, beliau telah dilantik sebagai was appointed as the Pengerusi dan berkuatkuasa daripada 1 Januari Chairman and with effect 2006, beliau meletakkan jawatan sebagai Pengerusi from 1 January 2006, he dan dilantik semula sebagai Timbalan Pengerusi resigned as the Chairman pada 6 Januari 2006. and was re-appointed as the Deputy Chairman on Beliau ialah seorang “Chartered Surveyor” dan telah 6 January 2006. menjadi “Fellow of the Royal Institution of Chartered Surveyor” pada tahun 1973. Beliau merupakan He is a Chartered Surveyor “Fellow of the Institution of Surveyors” (Malaysia) by profession and was pada tahun 1985. Beliau telah berkhidmat di made a Fellow of the Royal Perkhidmatan Awam Peringkat Negeri dan Malaysia; Institution of Chartered di Jabatan Perumahan dan Kerajaan Tempatan, Surveyors in 1973. He Johor dari tahun 1964 hingga 1967 dan sebagai became a Fellow of the Pengarah Penilaian di Kementerian Kewangan dari Institution of Surveyors tahun 1968 hingga 1972. Pada tahun 1974, beliau (Malaysia) in 1985. He telah bersama-sama menubuhkan C H Williams served in both the State Talhar & Wong (WTW), sebuah Firma Penilaian dan a n d M a l a y s i a n C i v i l Perunding Hartanah dan menjadi Pengerusi Kumpulan Services; in the Local WTW sejak tahun 1982. Beliau adalah Pengarah Government and Housing Pelaburan Johor Berhad, sebuah syarikat awam. Department, Johor from 1964 to 1967, and as Selain daripada yang dimaklumkan, beliau tidak Mohd Talhar Director of Valuation in the Ministry of Finance from mempunyai sebarang hubungan kekeluargaan Bin Abdul 1968 to 1972. In 1974, he co-founded C H Williams dengan mana-mana pengarah dan/atau pemegang Rahman Talhar & Wong (WTW), a Valuation and Property saham utama JLand. Beliau juga tidak mempunyai Deputy Chairman / Consultancy Firm and became the Group Chairman kepentingan peribadi dalam sebarang urusan Timbalan Pengerusi of WTW since 1982. He sits on the Board of perniagaan yang melibatkan JLand. Beliau juga tidak Pelaburan Johor Berhad, a public company. pernah dijatuhkan hukuman atas sebarang kesalahan. Beliau telah menghadiri dua (2) Mesyuarat Lembaga Other than as disclosed, he does not have any Pengarah Syarikat bagi tahun kewangan berakhir family relationship with any director and/or major pada 31 Disember 2008. shareholder of JLand. He has no personal interest in any business arrangement involving JLand. He has not been convicted for any offences. He attended two (2) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 15

A.F.M Shafiqul Hafiz, aged 62, a Bangladeshi and Malaysian Permanent Resident, was appointed to the Board and as Managing Director of JLand since 1 May 1988.

A.F.M Shafiqul Hafiz, berusia 62 tahun, warganegara Bangladesh dengan taraf Penduduk Tetap Malaysia, telah dilantik ke Lembaga Pengarah dan sebagai Pengarah Urusan JLand sejak 1 Mei 1988.

He graduated with a Bachelor Beliau memiliki Ijazah Sarjana Muda Sains dengan of Science Degree majoring in pengkhususan dalam Kejuruteraan Awam dari East Civil Engineering from East Pakistan University of Engineering and Technology, Dhaka Pakistan University of pada tahun 1967. Beliau juga memegang Ijazah Sarjana Engineering and Technology, Sains dengan pengkhususan dalam Kejuruteraan Awam Dhaka in 1967. He also holds dari Middle East Technical University of Ankara, Turki yang a Master of Science Degree in telah diperolehinya pada tahun 1971. Beliau juga berdaftar Civil Engineering from Middle dengan “Institute of Engineers” Australia sebagai “Chartered East Technical University of Professional Engineer”. Pada tahun 1992, beliau telah Ankara, Turkey which he menghadiri Program Pengurusan Atasan mengenai obtained in 1971. He is also Perusahaan Awam di Harvard, Amerika Syarikat. registered with the Institute of Engineers, Australia, as a Beliau adalah Ahli Majlis Kebangsaan “International Real Chartered Professional Engineer. In 1992, he attended Estate Federation” (FIABCI) Bahagian Malaysia sejak a Senior Management Program tahun 2000 dan telah dipilih sebagai Ahli Lembaga on Public Enterprise at Harvard, Pengarah FIABCI Antarabangsa bagi tempoh 2009 hingga USA. tahun 2012.

He has been a National Council Beliau memulakan kerjayanya sebagai Jurutera di Dhaka, Member of International Real Pakistan Timur pada tahun 1968. Kerjaya beliau di Malaysia Estate Federation (FIABCI) bermula sejak tahun 1974 apabila beliau menyertai Jabatan Malaysian Chapter since 2000 Kerja Raya Malaysia sebagai Jurutera Projek. Beliau and has been elected a Board kemudian telah berkhidmat dengan Johor Corporation Member of FIABCI International pada tahun 1983 dan telah memegang pelbagai jawatan di for the term 2009 till 2012. dalam Kumpulan sebelum dilantik sebagai Pengarah A.F.M Shafiqul Urusan JLand pada tahun 1988 dan sebagai Ketua He began his career as an Engineer in Dhaka, East Eksekutif Bahagian Pembangunan Hartanah Johor Hafiz Pakistan in 1968. His career in Malaysia dates back to Corporation sejak tahun 1991. Managing Director / 1974 when he joined Public Works Department of Malaysia Pengarah Urusan as a Project Engineer. Later he joined Johor Corporation Sebagai tambahan, beliau merupakan Pengerusi Hotel in 1983 and has held various positions within the Group Selesa Sdn Bhd, Hotel Selesa (JB) Sdn Bhd, Sibu Island before being appointed as the Managing Director of JLand Resorts Sdn Bhd dan TPM Technopark Sdn Bhd. Selain in 1988 and as the Chief Executive of the Property daripada itu, beliau merupakan Timbalan Pengerusi Puteri Development Division of Johor Corporation since 1991. Hotels Sdn Bhd dan juga Pengerusi dan Pengarah di beberapa buah syarikat dalam Kumpulan Johor In addition, he is the Chairman of Hotel Selesa Sdn Bhd, Hotel Selesa (JB) Sdn Bhd, Sibu Island Resorts Sdn Bhd Corporation. and TPM Technopark Sdn Bhd. Besides that, he is the Deputy Chairman of Puteri Hotels Sdn Bhd and also Selain dari yang dimaklumkan, beliau tidak mempunyai Chairman and Director of several other companies within sebarang hubungan kekeluargaan dengan mana-mana the Johor Corporation Group. pengarah dan/atau pemegang saham utama JLand. Beliau juga tidak mempunyai kepentingan peribadi dalam sebarang Other than as disclosed, he does not have any family urusan perniagaan yang melibatkan JLand. Beliau juga relationship with any director and/or major shareholder of tidak pernah dijatuhkan hukuman atas sebarang kesalahan. JLand. He has no personal interest in any business Beliau telah menghadiri kesemua empat (4) Mesyuarat arrangement involving JLand. He has not been convicted Lembaga Pengarah Syarikat bagi tahun kewangan berakhir for any offences. He attended all four (4) Board of Directors’ pada 31 Disember 2008. Meetings of the Company in the financial year ended 31 December 2008. 16 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Profile of the Board of Directors Profil Lembaga Pengarah Kua Hwee Sim, aged 56, a Malaysian, is an Independent Non Executive Director. She was first appointed to the Board of JLand on 1 May 1996.

Kua Hwee Sim, berusia 56 tahun, warganegara Malaysia, merupakan Pengarah Bebas Bukan Eksekutif. Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 1 Mei 1996.

She is also the Chairman of Beliau juga adalah Pengerusi Jawatankuasa Audit. the Audit Committee. She is Beliau merupakan “Fellow of the Association of a Fellow of the Association Chartered Certified Accountant”, United Kingdom dan of Chartered Certified merupakan seorang Akauntan Berdaftar di Malaysia Accountant, United Kingdom dan Singapura. Beliau memiliki pengalaman di dalam and a Registered Accountant kewangan korporat selama lebih daripada tiga puluh of Malaysia and Singapore. tahun di dalam beberapa industri di Malaysia dan She has more than thirty luar negara. years of corporate and financial experience in Beliau kini adalah Pengarah QSR Brands Berhad several industries within dan KFC Holdings (Malaysia) Bhd, Kulim (Malaysia) Malaysia and overseas. Berhad dan Sindora Berhad yang merupakan syarikat-syarikat anak Johor Corporation yang She is currently a Director tersenarai di Papan Utama Bursa Malaysia Securities of QSR Brands Berhad and Berhad. Beliau adalah ahli bagi setiap Jawatankuasa KFC Holdings (Malaysia) Audit di syarikat yang tersenarai di atas. Sebagai Bhd, Kulim (Malaysia) Akauntan profesional, beliau juga memberikan latihan Berhad and Sindora Berhad kewangan kepada syarikat-syarikat di Malaysia. w h i c h a r e J o h o r Corporation’s subsidiaries Selain daripada yang dimaklumkan, beliau tidak listed on the Main Board of mempunyai sebarang hubungan kekeluargaan Bursa Malaysia Securities dengan mana-mana pengarah dan/atau pemegang Berhad. She is a member saham utama JLand. Beliau juga tidak mempunyai Kua Hwee Sim of the respective Audit Committee for all those listed kepentingan peribadi dalam sebarang urusan Director / Pengarah companies. As a professional Accountant, she also perniagaan yang melibatkan JLand. Beliau juga tidak provides financial training for companies within pernah dijatuhkan hukuman atas sebarang kesalahan. Malaysia. Beliau telah menghadiri kesemua empat (4) Mesyuarat Lembaga Pengarah Syarikat bagi tahun Other than as disclosed, she does not have any kewangan berakhir pada 31 Disember 2008. family relationship with any director and/or major shareholder of JLand. She has no personal interest in any business arrangement involving JLand. She has not been convicted for any offences. She attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 17

Dato Hj Hassan Bin Hj Mohd Yunos, aged 73, a Malaysian, is an Independent Non Executive Director. He was appointed to the Board of JLand on 1 August 2005.

Dato Hj Hassan Bin Hj Mohd Yunos, berusia 73 tahun, warganegara Malaysia, merupakan Pengarah Bebas Bukan Eksekutif. Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 1 Ogos 2005.

He is also a member of the Beliau juga merupakan Ahli Jawatankuasa Audit. Audit Committee. Dato Hj Dato Hj Hassan merupakan Barrister-at-Law daripada Hassan is a Barrister-at- Lincoln’s Inn dan diterima serta diperakui sebagai Law from Lincoln’s Inn and Peguambela dan Peguamcara Malaysia pada tahun was called to the Malaysian 1965. Beliau pernah berkhidmat di Badan Kehakiman Bar in 1965. He had served dan Perkhidmatan Perundangan selama beberapa in the Malaysian Judicial tahun. and Legal Services for several years. Kini, beliau terlibat dalam bidang guaman dan merupakan Rakan Kongsi Kanan di firma Hassan Currently he is in legal Yunos & Co. Beliau terlibat dalam bidang korporat practice, a senior partner of dan hartanah dan turut terlibat dalam pembangunan the firm of Hassan Yunos & Johor Corporation di awal penubuhannya. Co. He is principally in corporate and real property Selain daripada yang dimaklumkan, beliau tidak and was involved at mempunyai sebarang hubungan kekeluargaan inception and in the early dengan mana-mana pengarah dan/atau pemegang stages of the development saham utama JLand. Beliau juga tidak mempunyai of Johor Corporation. kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan JLand. Beliau juga tidak Other than as disclosed, he pernah dijatuhkan hukuman atas sebarang kesalahan. does not have any family Beliau telah menghadiri kesemua empat (4) relationship with any director Mesyuarat Lembaga Pengarah Syarikat bagi tahun Dato Hj Hassan and/or major shareholder of JLand. He has no kewangan berakhir pada 31 Disember 2008. Bin Hj Mohd personal interest in any business arrangement Yunos involving JLand. He has not been convicted for any Director / Pengarah offences. He attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008. 18 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Profile of the Board of Directors Profil Lembaga Pengarah Lukman Bin Hj. Abu Bakar, aged 49, a Malaysian, is a Non Independent Non Executive Director of JLand. He was appointed to the Board of JLand on 1 August 2006.

Lukman Bin Hj. Abu Bakar, berusia 49 tahun, warganegara Malaysia, merupakan Pengarah Bukan Bebas Bukan Eksekutif JLand. Beliau telah dilantik sebagai Lembaga Pengarah JLand pada 1 Ogos 2006.

He is also a member of the Beliau juga merupakan Ahli Jawatankuasa Audit. Audit Committee. He Beliau berkelulusan Ijazah Sarjana Muda Perancang graduated with a Bachelor of Bandar dan Wilayah dari Universiti Teknologi Urban and Regional Planning Malaysia pada tahun 1982 sebelum berkhidmat di from the University of Technology Malaysia in Johor Corporation sebagai Pegawai Perancang 1982 before joining Johor Bandar pada tahun yang sama. Beliau juga memiliki Corporation as a Town Diploma Lepasan Ijazah (Perumahan, Pembinaan Planning Officer in the same dan Perancang) daripada Institute for Housing year. He also holds a Post Studies, Rotterdam, Holland pada tahun 1985. Graduate Diploma (Housing, Building and Planning) from Beliau telah memegang pelbagai jawatan di syarikat- Institute for Housing Studies, syarikat subsidiari dalam Kumpulan JCorp. Beliau Rotterdam, Holland in 1985. merupakan Timbalan Pengurus di JCorp pada tahun He has held various 1989. Kemudian, beliau dilantik sebagai Pengurus positions in subsidiary pada tahun 1992 dan juga dilantik sebagai Timbalan companies within the JCorp Setiausaha Pihak Berkuasa Tempatan Pasir Gudang. Group. He was a Deputy Beliau dilantik sebagai Timbalan Pengurus Besar Manager of JCorp in the Sindora Berhad pada 1 September 1993 dan dilantik year of 1989. Then, he was sebagai Pengurus Besar Sindora Berhad pada tahun appointed as a Manager in 1995. Beliau seterusnya menjadi Setiausaha Pihak 1 9 9 2 a n d w a s a l s o appointed as the Deputy Berkuasa Tempatan Pasir Gudang pada 1 April Secretary of Pasir Gudang 2004. Pada 1 Januari 2006, beliau dinaikkan pangkat Local Authority. He was sebagai Pengurus Besar Kanan JCorp merangkap appointed as the Deputy Setiausaha Pihak Berkuasa Tempatan Pasir Gudang. General Manager of Sindora Pada 1 Julai 2008, beliau telah dilantik sebagai Yang Lukman Bin Hj. Berhad on 1 September Dipertua Majlis Perbandaran Pasir Gudang. Abu Bakar 1993 and promoted as the General Manager of Sindora Berhad in 1995. He became the Secretary Director / Pengarah Beliau juga adalah Pengarah Damansara Realty of Pasir Gudang Local Authority on 1 April 2004. On 1 January 2006, he was promoted to Senior General Berhad, sebuah syarikat sekutu dalam Kumpulan Manager of JCorp cum the Secretary of Pasir Gudang JCorp, yang tersenarai di Papan Utama Bursa Local Authority. On 1 July 2008, he was appointed Malaysia Securities Berhad dan sebagai Pengarah as President of Pasir Gudang Municipal Council. Syarikat Pengangkutan Maju Berhad, Penawar Ekspress Line Berhad dan beberapa syarikat lain He also sits as a Director of Damansara Realty dalam Kumpulan JCorp. Berhad, an associate company of JCorp, listed on the Main Board of Bursa Malaysia Securities Berhad Selain daripada yang dimaklumkan, beliau tidak and as a Director of Syarikat Pengangkutan Maju Berhad, Penawar Ekspress Line Berhad and several mempunyai sebarang hubungan kekeluargaan other companies within the JCorp Group. dengan mana-mana pengarah dan/atau pemegang saham utama JLand. Beliau juga tidak mempunyai Other than as disclosed, he does not have any kepentingan peribadi dalam sebarang urusan family relationship with any director and/or major perniagaan yang melibatkan JLand. Beliau tidak shareholder of JLand. He has no personal interest in pernah dijatuhkan hukuman atas sebarang kesalahan. any business arrangement involving JLand. He has Beliau telah menghadiri tiga (3) Mesyuarat Lembaga not been convicted for any offences. He attended three (3) Board of Directors’ Meetings of the Company Pengarah Syarikat bagi tahun kewangan berakhir in the financial year ended 31 December 2008. pada 31 Disember 2008. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 19

Abdul Malek Bin Talib, aged 46, a Malaysian, is a Non Independent Non Executive Director of JLand. He was appointed to the Board of JLand on 1 January 2007.

Abdul Malek Bin Talib, berusia 46 tahun, warganegara Malaysia, merupakan Pengarah Bukan Bebas Bukan Eksekutif JLand. Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 1 Januari 2007.

He is currently the Managing Beliau kini adalah Pengarah Urusan Damansara Director of Damansara Assets Sdn Bhd, syarikat di dalam Kumpulan JCorp. Assets Sdn Bhd, a member Beliau juga adalah Pengerusi dan Pengarah di of the JCorp Group of beberapa buah syarikat dalam Kumpulan JCorp. Companies. He is also the Sebelum itu, beliau adalah Ketua Pegawai Operasi Chairman and Director of JLand. Beliau juga pernah bekerja di Pembinaan several other companies Prefab Sdn Bhd dan JCorp. within the JCorp Group. Previously, he was the Beliau memiliki Ijazah Sarjana Muda Kejuruteraan Chief Operating Officer of Awam daripada Michigan State University, Amerika JLand. Prior to that, he had Syarikat dan kemudian memperolehi Sarjana dalam worked with Pembinaan Pengurusan Perniagaan daripada Henley Management Prefab Sdn Bhd and College, London. Beliau juga merupakan seorang JCorp. Jurutera Profesional yang berdaftar dengan Lembaga Jurutera Malaysia. He holds a Bachelor in Civil Engineering from Michigan Selain daripada yang dimaklumkan, beliau tidak State University, USA and mempunyai sebarang hubungan kekeluargaan later obtained his Master in dengan mana-mana pengarah dan/atau pemegang Business Administration saham utama JLand. Beliau juga tidak mempunyai from Henley Management kepentingan peribadi dalam sebarang urusan College, London. He is also perniagaan yang melibatkan JLand. Beliau juga tidak a Professional Engineer pernah dijatuhkan hukuman atas sebarang kesalahan. Abdul Malek registered with the Board of Engineers, Malaysia. Beliau telah menghadiri kesemua empat (4) Bin Talib Mesyuarat Lembaga Pengarah Syarikat bagi tahun Director / Pengarah Other than as disclosed, he does not have any kewangan berakhir pada 31 Disember 2008. family relationship with any director and/or major shareholder of JLand. He has no personal interest in any business arrangement involving JLand. He has not been convicted for any offences. He attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008. 20 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Profile of the Board of Directors Profil Lembaga Pengarah Yusof Bin Rahmat, aged 51, a Malaysian, is a Non Independent Non Executive Director. He was appointed to the Board of JLand on 1 January 2007.

Yusof Bin Rahmat, berusia 51 tahun, warganegara Malaysia, merupakan Pengarah Bukan Bebas Bukan Eksekutif. Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 1 Januari 2007.

He graduated with Bachelor Beliau memiliki Ijazah Sarjana Muda Kepujian dalam of Civil Engineering Kejuruteraan Awam daripada University of Sheffield, ( H o n o u r s ) f r o m t h e United Kingdom pada tahun 1980 sebelum berkhidmat University of Sheffield, di Johor Corporation pada tahun yang sama. Beliau United Kingdom in 1980 memegang pelbagai jawatan dalam syarikat-syarikat before joining Johor anak dalam Perbadanan. Pada Januari 1997, beliau Corporation in the same dilantik sebagai Ketua Eksekutif Bahagian year. He has held various Pembangunan Projek, Johor Corporation. Beliau positions in subsidiary telah dilantik sebagai Pengarah Urusan TPM companies within the Technopark Sdn Bhd, sebuah syarikat dalam Corporation. In January Kumpulan Johor Corporation sejak Januari 2002. 1997, he was appointed as the Chief Executive of the Selain daripada yang dimaklumkan, beliau tidak P r o j e c t D e v e l o p m e n t mempunyai sebarang hubungan kekeluargaan Division, Johor Corporation. dengan mana-mana pengarah dan/atau pemegang He was appointed as the saham utama JLand. Beliau juga tidak mempunyai Managing Director of TPM kepentingan peribadi dalam sebarang urusan Technopark Sdn Bhd, a perniagaan yang melibatkan JLand. Beliau juga tidak company within the Johor pernah dijatuhkan hukuman atas sebarang kesalahan. Corporation Group since Beliau telah menghadiri tiga (3) Mesyuarat Lembaga January 2002. Pengarah Syarikat bagi tahun kewangan berakhir pada 31 Disember 2008. Other than as disclosed, he Yusof Bin does not have any family relationship with any Rahmat director and/or major shareholder of JLand. He has Director / Pengarah no personal interest in any business arrangement involving JLand. He has not been convicted for any offences. He attended three (3) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 21

Dr Mohd Hafetz Bin Ahmad, aged 58, a Malaysian, is an Independent Non Executive Director. He was appointed to the Board of JLand on 22 May 2007.

Dr Mohd Hafetz Bin Ahmad, berumur 58 tahun, warganegara Malaysia, merupakan Pengarah Bebas Bukan Eksekutif. Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 22 Mei 2007.

He graduated with an MBBS Beliau memiliki Ijazah Perubatan (MBBS) daripada from the University of Universiti Malaya pada tahun 1975. Pada tahun Malaya in 1975. In 1982, 1982, beliau memperolehi Ijazah Kepakaran, MRCOG he obtained his specialist daripada “Royal College of Obstetricians and degree, MRCOG, from Gynaecologists” London, United Kingdom. Beliau t h e R o y a l C o l l e g e dikurniakan “Fellow of the Royal College Obstetricians of Obstetricians and Gynaecologists, London, and Gynaecologists”, pada tahun 2001. United Kingdom. He was admitted as a Fellow Dr Hafetz memulakan kerjayanya sebagai Doktor of the Royal College Pelatih pada tahun 1975 hingga tahun 1976 di of Obstetricians and Hospital Sultanah Aminah, Johor Bahru. Beliau Gynaecologists in 2001. meneruskan perkhidmatannya sebagai Pegawai Perubatan di hospital yang sama di Jabatan Pesakit Dr Hafetz did his Luar dan Jabatan Perbidanan dan Sakit Puan. housemanship in 1975-1976 Daripada tahun 1978 hingga 1983, beliau bertugas at Hospital Sultanah sebagai Pensyarah Pelatih, kemudiannya sebagai Aminah, Johor Bahru. Pensyarah di Jabatan Perbidanan dan Sakit Puan, Subsequently he worked in the same hospital in the Fakulti Perubatan di Universiti Malaya. Outpatients Department, and the Department of Beliau menyertai Hospital Pakar Johor sebagai Pakar Obstetrics and Gynaecology. Perunding Perbidanan dan Sakit Puan sejak Jun From 1978 till 1983, he 1983 dan masih berkhidmat sepenuh masa dalam worked initially as a Trainee bidang tersebut. Dari September 1994 hingga kini, Lecturer, then as Lecturer beliau juga memegang jawatan Pengarah Perubatan in the Department of Dr Mohd Hafetz di hospital berkenaan. Beliau adalah Ahli Lembaga Obstetrics and Gynaecology, Medical Faculty, Pengarah KPJ Hospital Pakar Johor, Hospital Pakar Bin Ahmad University of Malaya. Kluang Utama, Kumpulan Waqaf An-Nur Berhad dan Director / Pengarah Damansara REIT Managers Sdn Bhd. Pada tahun He joined Johor Specialist Hospital as a Consultant Obstetrician and Gynaecologist in June 1983 and is 2004 hingga tahun 2005, Dr Hafetz telah memegang still in full time clinical practice. Since September jawatan Presiden Persatuan Perbidanan dan Sakit 1994 till present, he concurrently holds the post of Puan Malaysia (OGSM). Medical Director of the hospital. He sits on the Board of Directors of KPJ Johor Specialist Hospital, Kluang Selain daripada yang dimaklumkan, beliau tidak Utama Specialist Hospital, Kumpulan Waqaf An-Nur mempunyai sebarang hubungan kekeluargaan Berhad and Damansara REIT Managers Sdn Bhd. In dengan mana-mana pengarah dan/atau pemegang 2004-2005, Dr Hafetz was the President of the saham utama JLand. Beliau tidak mempunyai Obstetrical and Gynaecological Society of Malaysia kepentingan peribadi dalam sebarang urusan (OGSM). perniagaan yang melibatkan JLand. Beliau juga tidak pernah dijatuhkan hukuman atas sebarang kesalahan. Other than as disclosed, he does not have any family relationship with any director and/or major Beliau telah menghadiri kesemua empat (4) shareholder of JLand. He has no personal interest in Mesyuarat Lembaga Pengarah Syarikat bagi tahun any business arrangement involving JLand. He has kewangan berakhir pada 31 Disember 2008. not been convicted for any offences. He attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008. 22 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Corporate Structure Struktur Korporat

100% Advance Development Sdn Bhd 13974-A Property Development Pembangunan Hartanah

100% Pembinaan Prefab Sdn Bhd 30936-A Property Development Pembangunan Hartanah JOHOR LAND BERHAD 12379-K Property Development, 100% Construction, Property Investment Johor Land Manufacturing Sdn Bhd and Investment Holding 301430-D Dormant Pembangunan Hartanah, Tidak aktif Pembinaan, Pelaburan Hartanah dan Pemegang Pelaburan 30.07% Revertex (Malaysia) Sdn Bhd 13437-V Manufacturer of Specialty Latex Concentrate and Industrial Chemicals Pengeluar Pati Susu Getah Asli dan Bahan Kimia Industri Laporan Tahunan 2008 Annual Report • Johor Land Berhad 23

Teraju Committee Jawatankuasa Teraju

MARIANA BINTI SIDI MOHD RAZIF BIN AB. RAHIM Senior General Manager (Finance) General Manager, Pengurus Besar Kanan (Kewangan) Bandar Dato’ Onn Division Pengurus Besar, Bahagian Bandar Dato’ Onn

A.F.M Shafiqul Hafiz SHEIKH BAHNAN BIN SETH BIN JAMALUDDIN Managing Director SHEIKH BAKIR Deputy General Manager, Pengarah Urusan Deputy General Manager, Marketing Department Quality Assurance Department Timbalan Pengurus Besar, Timbalan Pengurus Besar, Jabatan Pemasaran Jabatan Jaminan Mutu

AZIZUL BIN KATAN MOHD HIZAM BIN ABDUL RAUF NORFAZAHAH BINTI AHMAD FADZILAH BINTI MOHD OTHMAN Deputy General Manager, Deputy General Manager, Deputy General Manager, Senior Manager, Human Resource & Johor Bahru Division/Quality Department Sales Documentation Department Managing Director’s Office Administration Department Timbalan Pengurus Besar, Timbalan Pengurus Besar, Timbalan Pengurus Besar, Pengurus Kanan, Jabatan Sumber Bahagian Johor Bahru/Jabatan Kualiti Jabatan Dokumentasi Jualan Pejabat Pengarah Urusan Manusia & Pentadbiran 24 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

StatementCorporate toDiary Shareholders 2008 PenyataKalendar Kepada Korporat Para 2008 Pemegang Saham

On behalf of the Board of Directors, we are delighted to present the Annual Report and Financial Statements of Johor Land Berhad (“JLand” or “the Group”) for the financial year ended 31 December 2008 (“FY2008”).

Para Pemegang Saham,

Bagi pihak Lembaga Pengarah, kami dengan sukacitanya membentangkan Laporan T ahunan dan P enyata Kewangan Johor Land Berhad (“JLand” atau “Kumpulan”) bagi tahun kewangan berakhir 31 Disember 2008 (“TK2008”). Laporan Tahunan 2008 Annual Report • Johor Land Berhad 25

OPERATING ENVIRONMENT The year 2008 brought with it a challenging operating environment even as the effects of the global financial meltdown and ensuing recession were felt throughout the world. Bank Negara Malaysia (“the Central Bank of Malaysia”) reported that the Malaysian economy experienced slower growth in 2008 with gross domestic product (“GDP”) growth dropping to 4.6% against 6.3% growth in 2007. The Malaysian construction industry too was not spared the flood of challenges triggered off by the unprecedented upsurge in crude oil prices and the ripple effects of the global financial meltdown. From the 18% to 26% rise in electricity tariffs, to the sudden 20% to 30% spike in building material costs, to the massive 40% rise in petrol pump prices, industry players were inundated by one challenge after another.

As a consequence, the project margins of many players dwindled. Forced to adopt a cautious approach, key players put mega projects on hold while carefully scrutinising all expansion opportunities. Others decided to tender for new jobs only when prices stabilised. By the time price fluctuations had evened out around the end of the third quarter of 2008, many players were left with lower revenue and reduced profitability. These market uncertainties led to demand for property weakening over 2008 and buyers becoming more prudent with their spending. Even as many buyers adopted a wait-and-watch stance, the property market sector began to get softer. At the time of writing, all sectors of the Malaysian economy including the construction and property sectors are feeling the ripple effects of the global crisis and a more challenging outlook is expected for 2009.

PERSEKITARAN OPERASI Tahun 2008 telah membawa bersamanya persekitaran operasi yang mencabar dengan kesan kegawatan kewangan global dan disusuli kemelesetan yang dirasai di seluruh dunia. Bank Negara Malaysia (“Bank Pusat Malaysia”) melaporkan bahawa ekonomi Malaysia mengalami pertumbuhan yang lebih perlahan pada tahun 2008 dengan pertumbuhan keluaran dalam negara kasar (“KDNK”) jatuh kepada 4.6% berbanding dengan pertumbuhan sebanyak 6.3% pada tahun 2007. Industri pembinaan Malaysia juga tidak terkecuali dilanda cabaran yang disebabkan oleh lonjakan harga minyak mentah yang tidak pernah terjadi sebelumnya serta kesan getaran kegawatan kewangan global. Dengan kenaikan tarif elektrik dari 18% kepada 26%, serta lonjakan mendadak dari 20% kepada 30% dalam kos bahan binaan, sehinggalah kepada kenaikan yang tinggi sebanyak 40% bagi harga minyak petrol, para penggiat industri berterusan dilanda satu demi satu cabaran.

Akibatnya, margin projek kebanyakan penggiat industri telah merosot. Pendekatan yang lebih berhati-hati terpaksa digunapakai dan penggiat utama perlu menangguhkan projek mega sambil meneliti secara terperinci semua peluang perkembangan. Yang lain pula memutuskan untuk mendapatkan kerja-kerja baru hanya setelah harga stabil. Apabila turun naik harga menjadi lebih terkawal pada persekitaran akhir suku ketiga tahun 2008, ramai penggiat memperolehi hasil yang lebih rendah serta penguncupan keuntungan. Ketidaktentuan pasaran telah menyebabkan permintaan terhadap hartanah berkurangan sepanjang tahun 2008 dan para pembeli menjadi lebih berhemat dalam perbelanjaan. Dengan ramai pembeli mengambil sikap tunggu dan lihat, sektor hartanah mula mengalami kelembapan. Ketika penyata ini ditulis, semua sektor ekonomi Malaysia termasuk sektor pembinaan dan hartanah sedang merasai kesan gegaran krisis global dan ramalan untuk tahun 2009 dijangkakan lebih mencabar. 26 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Amidst this weak operating environment, The quality of the Group’s balance sheet Biarpun berlatarkan persekitaran operasi yang JLand once again demonstrated its too improved with net tangible assets lemah, JLand sekali lagi memperlihatkan resilience and ability to adapt to changing growing to RM653.33 million in 2008, ketahanan serta kemampuannya untuk business conditions. The many years of against the RM640.47 million recorded in berhadapan dengan keadaan perniagaan experience and expertise garnered from the preceding year. JLand’s gearing to yang berubah. Berbekalkan pengalaman dan owning strategically located land banks date remains at a minimal level in line kepakaran yang diraih selama bertahun-tahun and developing property projects ranging with FY2007’s ratio (0.28 in 2008 against dengan memiliki simpanan tanah di lokasi from affordable homes to exclusive 0.22 in 2007). yang strategik serta membangunkan projek neighbourhoods, continued to hold us in hartanah yang terdiri daripada rumah mampu good stead over 2008. In order to attract milik sehinggalah kepada perjiranan yang eksklusif, ia terus meletakkan kami pada buyers, we continued to focus our efforts DIVIDENDS kedudukan yang kukuh sepanjang tahun on creating product differentiation through The Group is highly appreciative of our 2008. Dalam usaha untuk menarik para innovative designs and competitive shareholders’ support and commitment pembeli, kami terus menumpukan usaha pricing. To ensure that the new units and we are consistently looking for ways untuk mencipta perbezaan dalam produk could easily be absorbed by the market, to return value to you. For the year under menerusi reka bentuk inovatif serta penetapan we embarked on a strategy of rolling out review, the Board of Directors paid an harga yang kompetitif. Bagi memastikan unit- new projects in staggered phases instead interim dividend of 4% gross (less unit baru dapat diterima di pasaran, kami of launching the entire project up front as Malaysian income tax at 25%) on telah memulakan strategi pelancaran projek is normally done. In line with our strategy 30 January 2009. We cherish our baru dalam fasa yang berperingkat berbanding of creating affordable and value-for-money shareholders’ confidence in the Group, dengan pelancaran keseluruhan projek sekali products, we continued to keep a close and ask that you continue to lend us your gus seperti yang biasa dilakukan. Seiring eye on product mix, unit built-up and strong support and steadfast commitment dengan strategi kami untuk menghasilkan pricing. as we work together to face all produk yang mampu dimiliki dan memberi challenges. nilai untuk wang, kami terus memberi tumpuan kepada campuran produk, binaan unit dan FINANCIAL PERFORMANCE penetapan harga. We are pleased to report that despite the CORPORATE DEVELOPMENT flagging operating environment, the Group JLand’s proposed acquisition of a 50.98% PRESTASI KEWANGAN experienced stellar growth for the financial equity stake in Windsor Trade Holdings Kami dengan sukacitanya melaporkan year ended 31 December 2008 with Sdn Bhd (“WTHSB”) for a cash revenue increasing by 118.91% to bahawa biarpun persekitaran operasi kian consideration of RM15 million is pending lemah, Kumpulan mengalami pertumbuhan RM138.69 million from RM63.36 million in finalisation. WTHSB, through its 80% the preceding year. This improved yang cemerlang bagi tahun kewangan owned company Windsor Trade Sdn Bhd, berakhir 31 Disember 2008 dengan performance was attributable to higher has been granted a 30-year concession sales and progress billings from our core peningkatan perolehan sebanyak 118.91% for the operation of the Sandakan kepada RM138.69 juta daripada RM63.36 property projects. Similarly, profit before Integrated Trade Exchange Terminal juta pada tahun sebelumnya. Peningkatan tax (“PBT”) increased to RM25.29 million (“SITExT”) in Sabah under the “build, prestasi ini berpunca daripada jualan dan in FY2008 compared to PBT of RM8.27 operate, own and transfer” concept. The tuntutan kemajuan kerja yang lebih tinggi million in FY2007. remaining 20% is in the hands of the daripada projek hartanah utama kami. Sabah Economic Development Justeru itu, keuntungan sebelum cukai Corporation. meningkat kepada RM25.29 juta bagi TK2008 berbanding dengan keuntungan sebelum cukai sebanyak RM8.27 juta bagi TK2007. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 27

Kualiti lembaran imbangan Kumpulan juga bertambah baik dengan aset ketara bersih meningkat kepada RM653.33 juta pada tahun 2008, berbanding RM640.47 juta yang dicatatkan pada tahun sebelumnya. Sehingga kini, penggearan JLand kekal pada tahap minimum, setara dengan nisbah TK2007 (0.28 pada tahun 2008 berbanding 0.22 pada tahun 2007).

DIVIDEN Kumpulan amat menghargai sokongan serta komitmen para pemegang saham dan kami sentiasa berusaha untuk memberi pulangan kepada anda. Untuk tahun di bawah kajian, Lembaga Pengarah telah membayar dividen interim sebanyak 4% kasar (ditolak 25% cukai pendapatan Malaysia) pada 30 Januari 2009. Kami menghargai keyakinan para pemegang sah am terhadap Kumpulan, dan berharap agar anda terus memberi sokongan yang padu serta komitmen yang teguh dalam kita bersama-sama berusaha menangani segala cabaran.

PERKEMBANGAN KORPORAT Cadangan pengambilalihan 50.98% kepentingan ekuiti dalam Windsor Trade Holdings Sdn Bhd (“WTHSB”) oleh JLand dengan pertimbangan bayaran sebanyak RM15 juta, kini dalam proses penyelesaian. WTHSB, menerusi 80% pemilikan syarikat ke atas Windsor Trade Sdn Bhd, telah diberikan konsesi selama 30 tahun untuk operasi Sandakan Integrated Trade Exchange Terminal (“SITExT”) di Sabah di bawah konsep “bina, kendali, milik dan pindah”. Baki 20% lagi dipegang oleh Perbadanan Kemajuan Ekonomi Negeri Sabah. 28 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

OPERATIONAL HIGHLIGHTS Core Business – Property Development JLand’s operating philosophy advocates that all levels of our organisation place a high priority on meeting the needs of our customers. We never forget who we are working for and our customers always come first. Where other developers merely build houses, we create homes, sustain communities and enrich lives. We are committed to adopting a holistic approach in all that we undertake. Quality too, remains a top priority; and creativity, our forte. We are pleased to present an overview of the developments that took place in the year under review.

Pasir Gudang Division Taman Bukit Dahlia Taman Bukit Dahlia, a 417-acre development is our premier project in Pasir Gudang. Upon its completion by the end of 2010, this development will house more than 4,100 units of various types, including terraced houses, semi-detached houses, bungalows and commercial complexes. Strategically located between Masai and Pasir Gudang, Taman Bukit Dahlia’s surrounding amenities include the landscaped Tasik Perdana, schools, a polytechnic, a police station, a hospital and banks, as well as access to neighbouring hypermarkets, racing tracks, a sports complex and Bukit Layang-Layang where the Annual International Kites Festival is held.

The year saw a total of 190 units of Damai double storey terraced houses (valued at RM30 million) launched in February 2008 and 46 units of Perdana Phase 2 double storey semi-detached houses (valued at RM13 million) launched in May 2008. More recently, in January 2009, 15 units of double storey shop offices (valued at RM5.6 million) were launched. Going forward, we will launch 114 units of Prima double storey terraced houses (valued at RM19 million) in the second quarter of 2009. The third quarter of 2009 will see 205 units of Kristal Phase 3 single storey terraced houses (valued at RM27 million) and 72 units of Pesona Phase 3 double storey terraced houses (valued at RM14 million) expected to be launched. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 29

TINJAUAN OPERASI unit rumah teres dua tingkat Prima Bisnes Teras (bernilai RM19 juta) pada suku kedua 2009. Menjelang suku ketiga tahun 2009, – Pembangunan Hartanah Falsafah operasi JLand mengesyorkan 205 unit rumah teres satu tingkat Kristal bahawa semua peringkat organisasi kami Fasa 3 (bernilai RM27 juta) dan 72 unit meletakkan keutamaan yang tinggi dalam rumah teres dua tingkat Pesona Fasa 3 memenuhi keperluan para pelanggan. (bernilai 14 juta) dijangka akan Kami tidak pernah lupa untuk siapa kami dilancarkan. bekerja dan pelanggan kami sentiasa diberi keutamaan. Jika para pemaju lain sekadar membina rumah, kami mencipta Bahagian Bandar Tiram kediaman, mengekalkan komuniti dan Bandar Tiram, Taman Bukit Tiram dan memperkayakan kehidupan. Kami komited Kota Tinggi dalam menggunapakai pendekatan yang Bandar Tiram merupakan sebuah projek holistik dalam setiap apa yang kami pembangunan di Ulu Tiram yang sedang lakukan. Malah, kualiti juga kekal sebagai dilaksanakan oleh JLand. Apabila siap keutamaan teratas; dan kreativiti kelak, pembangunan ini akan merangkumi Bandar Tiram Division merupakan kepakaran kami. Kami dengan 12,300 unit rumah beserta kawasan Bandar Tiram, Taman Bukit Tiram and sukacitanya membentangkan tinjauan perjiranan dan unit-unit kedai pusat bandar. Kota Tinggi operasi yang berlaku untuk tahun di Dijadualkan siap menjelang tahun 2020, Bandar Tiram is an ongoing development bawah kajian. keseluruhan projek ini mempunyai nilai project in Ulu Tiram that is being pembangunan kasar berjumlah RM2.6 developed by JLand. When completed, bilion dan unjuran keuntungan kasar the development will consist of 12,300 Bahagian Pasir Gudang sebanyak RM800 juta. Bandar Tiram units of houses as well as neighbourhood Taman Bukit Dahlia sedang dimajukan secara berperingkat and town centre shop units. Scheduled Pembangunan seluas 417 ekar di Taman dan fasa pertama perbandaran ini for completion by 2020, the entire project Bukit Dahlia merupakan projek utama merangkumi campuran 1,574 unit kediaman has a total gross development value kami di Pasir Gudang. Apabila siap dan komersial dengan nilai pembangunan (“GDV”) of RM2.6 billion and a projected menjelang penghujung tahun 2010, projek kasar berjumlah RM200 juta. Pada suku gross profit of RM800 million. Bandar pembangunan ini akan menempatkan kedua tahun 2009, 83 unit rumah teres Tiram is being developed in stages and lebih daripada 4,100 unit pelbagai jenis satu tingkat Orchid bernilai RM12 juta the first phase of the township will rumah, termasuk rumah teres, rumah dijangka akan dilancarkan di Bandar Tiram comprise a mix of 1,574 residential and berkembar, banglo serta kompleks Fasa 1. commercial units with a total GDV of komersial. Selain kedudukannya yang RM200 million. The second quarter of strategik di antara Masai dan Pasir Di Fasa 3 Taman Bukit Tiram, 11 unit 2009 will see 83 units of Orchid single Gudang, Taman Bukit Dahlia dikelilingi kedai pejabat tiga tingkat bernilai RM6 storey terraced houses valued at RM12 pelbagai kemudahan termasuk Tasik juta telah dilancarkan pada Mac 2008. million expected to be launched at Bandar Perdana yang dihiasi landskap, sekolah- Menjelang suku kedua tahun 2009, 20 Tiram Phase 1. sekolah, politeknik, balai polis, hospital unit rumah berkembar dua tingkat bernilai dan bank-bank serta akses ke kawasan RM7 juta telah disasar untuk At Phase 3 of Taman Bukit Tiram, 11 perjiranan yang menempatkan pasar raya dilancarkan. units of three storey shop offices valued besar, litar perlumbaan, kompleks sukan at RM6 million were launched in March dan Bukit Layang-Layang di mana Festival Di Kota Tinggi, pembangunan 28 unit 2008. Over the second quarter of 2009, Layang-Layang Antarabangsa Tahunan kedai pejabat dua tingkat di Kota Sentral 20 units of double storey semi-detached diadakan. Fasa 2 telah dilancarkan pada Januari houses valued at RM7 million are targeted 2008. Sehingga kini, kesemua 28 unit for launch. Tahun ini menyaksikan sejumlah 190 unit yang benilai RM15 juta telahpun dijual. rumah teres dua tingkat Damai (bernilai In Kota Tinggi, 28 units of double storey RM30 juta) dilancarkan pada Februari shop offices at the Kota Sentral Phase 2 2008 dan 46 unit rumah berkembar dua development were launched in January tingkat Perdana Fasa 2 (bernilai RM13 2008. All 28 units valued at RM15 million juta) dilancarkan pada Mei 2008. Baru- have been sold to date. baru ini, pada Januari 2009, 15 unit kedai pejabat dua tingkat (bernilai RM5.6 juta) telah dilancarkan. Dalam melangkah ke hadapan, kami akan melancarkan 114 30 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Tebrau Division of double storey terraced houses and Bahagian Tebrau Bandar Dato’ Onn double storey semi detached houses are Bandar Dato’ Onn JLand’s latest property offering, Bandar scheduled for completion in 2009. Phase Hartanah terbaru yang ditawarkan oleh Dato’ Onn, promises to be one of the 2 was launched in January 2008 and JLand, Bandar Dato’ Onn, menjanjikan akan most sought-after addresses in Iskandar consists of 144 units of Celocia 1, 2 and menjadi salah satu alamat kediaman yang Malaysia. Spread over 1,514 acres of 3 double storey terraced houses and 106 paling diidamkan di Iskandar Malaysia. Dengan tanah pegangan bebas yang meliputi freehold land and located only 12 km units of Cleome 1, 2 and 3 double storey keluasan 1,514 ekar dan terletak hanya from the Johor Bahru city centre, this terraced houses with an estimated valued of RM61 million. Phase 3 was launched 12 km dari pusat bandar Johor Bahru, premier development has been planned kawasan pembangunan utama ini telah in August 2008 and consists of 40 units as a self-contained city and a place for dirancang sebagai sebuah bandar serba of Sapphire double storey terraced more than 90,000 residents to call home. lengkap dan menjadi tumpuan bagi lebih The township is scheduled to be houses, 22 units of Emerald 2 double 90,000 penduduk yang akan menjadikannya completed over a 10 to 15-year period storey semi-detached houses, and 6 units kediaman. Perbandaran ini dijadualkan siap and will feature approximately 17,800 of Cleome 3 double storey terraced dalam tempoh 10 hingga 15 tahun dan akan properties with expected gross sales and houses with a total estimated value of menampilkan lebih kurang 17,800 hartanah gross profit of RM4.0 billion and RM1.2 RM27 million. dengan jangkaan jualan kasar serta billion respectively. keuntungan kasar, masing-masing sebanyak In spite of the uncertainties clouding the RM4.0 bilion dan RM1.2 bilion. Bandar Dato’ Onn is accessible via a global economy, we continue to pay Bandar Dato’ Onn boleh diakses melalui dedicated interchange that provides direct strong attention to the master planning of persimpangan bertingkat yang menyediakan uninterrupted access to the township. The Bandar Dato’ Onn. The development work at Bandar Dato’ Onn has been progressing laluan terus tanpa gangguan ke bandar. township will incorporate some 19 Bandar ini merangkumi 19 perjiranan according to schedule and we anticipate thoroughly planned, exclusive eksklusif yang dirancang teliti dan disasar strong interest in our innovative product neighbourhoods aimed at bringing out the untuk menyerlahkan aspek terhebat dalam finest aspects of community living, plus a offerings. In 2009, we plan to launch kehidupan berkomuniti, serta sebuah hab vibrant 118-acre commercial hub. These Neighbourhood 14 which will comprise perdagangan yang memberangsangkan distinctive features, as well as its emphasis 693 residential and commercial units with seluas 118 ekar. Ciri-ciri unggul ini, di on green areas and recreational parks, an estimated value of RM147 million and samping penekanan terhadap kawasan hijau will make Bandar Dato’ Onn one of the Neighbourhood 11 comprising 642 dan taman rekreasi, akan menjadikan Bandar most beautiful and modern townships in residential units with an estimated value Dato’ Onn salah satu bandar paling cantik Southern Malaysia to live in. of RM164 million. dan moden untuk didiami di Selatan Malaysia. To date, JLand has also completed 10 Sehingga kini, JLand juga telah menyiapkan OTHER BUSINESS ACTIVITIES show houses at Bandar Dato’ Onn for 10 buah rumah contoh di Bandar Dato’ Onn public viewing. The first phase, In 2008, JLand garnered rental income untuk dilawati oleh orang ramai. Fasa Neighbourhood 10, comprises 662 units amounting to RM668,840.00 from several pertama, Perjiranan 10, terdiri daripada 662 of double storey terraced houses and development projects including 38 units unit rumah teres dua tingkat dan rumah double storey semi-detached houses with of apartments at Taman Cendana, 45 two berkembar dua tingkat dengan nilai a GDV of RM178 million. Phase 1 of to three storey commercial units at Senai pembangunan kasar berjumlah RM178 juta. Neighbourhood 10 comprising 295 units Commercial Park, and 81 three storey Fasa 1 Perjiranan 10 yang merangkumi 295 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 31

unit rumah teres dua tingkat dan rumah berkembar dua tingkat dijadualkan siap pada tahun 2009. Fasa 2 telah dilancarkan pada Januari 2008 dan terdiri daripada 144 unit rumah teres dua tingkat Celocia 1, 2 dan 3 serta 106 unit rumah teres dua tingkat Cleome 1, 2 dan 3 dengan nilai anggaran RM61 juta. Fasa 3 telah dilancarkan pada Ogos 2008 dan terdiri daripada 40 unit rumah teres dua tingkat Sapphire, 22 unit rumah berkembar dua tingkat Emerald 2, serta 6 unit rumah teres dua tingkat Cleome 3 dengan jumlah nilai anggaran sebanyak RM27 juta.

Biarpun ketidaktentuan menyelubungi ekonomi global, kami terus memberi tumpuan yang utama kepada perancangan induk Bandar Dato’ Onn. Kerja-kerja pembangunan di Bandar Dato’ Onn telah berjalan mengikut jadual dan kami menjangkakan minat yang mendalam terhadap penawaran produk kami yang inovatif ini. Pada tahun 2009, kami merancang untuk melancarkan Perjiranan 14 yang akan merangkumi 693 unit kediaman dan komersial dengan nilai anggaran RM147 juta serta Perjiranan 11 yang terdiri daripada 642 unit kediaman dengan nilai anggaran RM164 juta.

AKTIVITI PERNIAGAAN LAIN Pada tahun 2008, JLand telah memperolehi pendapatan sewa berjumlah RM668,840.00 daripada beberapa projek pembangunan, termasuk 38 unit pangsapuri di Taman Cendana, 45 unit komersial dua dan tiga tingkat di Senai Commercial Park, dan 81 unit kedai pejabat tiga tingkat di Taman Mawar dan Tebrau Business Park. Sejumlah lapan unit kedai pejabat dalam lingkungan hartanah ini telah dijual sepanjang tahun. 32 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

shop offices at Taman Mawar and Tebrau Business Park. A total of eight units of shop offices within these properties were sold off during the year.

We continue to hold a 30.07% stake in Revertex (Malaysia) Sdn Bhd, one of the world’s largest producers of specialty natural rubber latex concentrates and industrial chemicals. For FY2008, the company turned in revenue and PBT of RM569.09 million and RM44.01 million respectively against revenue of RM531 million and PBT of RM41.71 million in FY2007.

HUMAN CAPITAL DEVELOPMENT JLand is committed to developing the full potential of one of our greatest assets – our people. At every step of the way we are continuously looking out for the people that make us proud of doing what we do. Our human capital development system is essentially a two-way relationship. We provide the opportunity for all our employees to develop to their highest potential and hold in high esteem, the contributions, hard work, knowledge and skills that our employees bring to the table. We like to think of this synergy as a meeting of minds and take pride that we have successfully managed to establish a powerful, self motivated and independent thinking workforce that is both robust and competitive.

The basic job requirements at JLand call for the employment of support staff with a SPM certificate and junior executives with a diploma, while executives and senior executives and management require a basic degree. Senior Management level personnel are also encouraged to have an MBA. Excellent performers without the required academic background may also be promoted depending on performance, vacancies and recommendations from their superiors and approval from top management. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 33

Kami terus memegang 30.07% program-program latihan yang telah kepentingan dalam Revertex (Malaysia) dirangka dengan terperinci. Pada tahun Sdn Bhd, iaitu salah sebuah pengeluar 2008, kami telah melabur sebanyak pati susu getah asli serta bahan kimia RM348,200.00 (atau 5% daripada industri terbesar di dunia. Untuk TK2008, emolumen kami) dalam modal insan serta syarikat telah memperolehi perolehan latihan berkualiti dengan purata 35 jam serta keuntungan sebelum cukai masing- latihan setiap orang untuk kesemua 139 masing sebanyak RM569.09 juta dan anggota pekerja kami. Bagi melengkapkan RM44.01 juta berbanding perolehan anggota pekerja kami dengan pengetahuan sebanyak RM531 juta dan keuntungan dan kemahiran baru serta sebelum cukai berjumlah RM41.71 juta mempertingkatkan kecekapan mereka, pada TK2007. kami telah melancarkan 5 program latihan berasaskan kemahiran, 39 berasaskan pengetahuan dan 4 program yang PEMBANGUNAN MODAL INSAN menumpukan kepada perlakuan. JLand komited dalam membangunkan Seramai sembilan pengurus peringkat In line with our objective of enhancing the sepenuhnya potensi salah satu aset terbesar kami – anggota pekerja kami. pertengahan dan 13 eksekutif kanan competencies of our human capital, JLand terlibat dalam latihan yang mengambil continues to bring well-crafted training Dalam setiap langkah yang diatur kami terus mencari individu yang membuatkan jumlah masa 80 jam dan berkaitan programmes into play. In 2008, we kami bangga dengan apa yang kami dengan kemahiran persembahan invested RM348,200.00 (or 5% of our lakukan. Sistem pembangunan modal perniagaan yang berkesan. Sesi lanjutan emolument) on human capital and quality insan kami pada asasnya merupakan telah diadakan untuk menilai kemajuan training with an average of 35 training hubungan dua hala. Kami menyediakan para peserta dan bagi memberikan hours per person for all 139 of our peluang untuk semua anggota pekerja maklum balas tentang perkara-perkara employees. To equip our employees with kami mengembangkan potensi terbaik yang boleh dipertingkatkan. Dalam new knowledge and skills as well as to mereka dan kami amat menghargai melangkah ke hadapan, sesi latihan akan upgrade their competencies, we rolled out sumbangan, kerja keras, pengetahuan diatur bagi memantapkan lagi kemahiran persembahan yang dimiliki anggota 5-skill based training programmes, serta kemahiran yang dicurahkan oleh pekerja ini. Dari segi keselamatan dan 39-knowledge based ones and 4 anggota pekerja kami. Kami cenderung kesihatan pekerjaan, anggota programmes focusing on attributes. menganggap sinergi ini sebagai suatu persepakatan yang utuh dan berbangga Jawatankuasa Keselamatan & Kesihatan bahawa kami telah berjaya mewujudkan Pekerjaan kami beserta 34 anggota Nine of our middle managers and 13 tenaga kerja yang berkeupayaan, memiliki pekerja teknikal dan 27 kontraktor serta senior executives were involved in a total motivasi diri dan tajam fikiran serta teguh konsultan kami telah terlibat dalam latihan of 80 hours training related to effective dan berdaya saing. yang berkaitan dengan langkah-langkah business presentation skills. Follow-up keselamatan dan kesihatan dalam bidang sessions were held to assess the Kelayakan kerja yang asas di JLand pembinaan. Latihan ini akan memberikan participants’ progress and to provide memerlukan pengambilan anggota pekerja pulangan yang bermanfaat dalam feedback on areas for improvement. sokongan yang memiliki sijil SPM dan memastikan bahawa kemalangan, bahaya Going forward, practice sessions will be eksekutif muda yang mempunyai diploma, serta risiko yang berkaitan dengan pembinaan dapat diminimumkan. arranged to further enhance the manakala eksekutif serta eksekutif kanan presentation skills that these employees dan pengurusan memerlukan ijazah asas. have acquired. In the area of occupational Anggota pekerja peringkat pengurusan safety and health, members of our kanan turut digalakkan mendapatkan MBA. Anggota pekerja yang menunjukkan Occupational Safety & Health Committee prestasi cemerlang walaupun tanpa as well as 34 technical staff and 27 of latarbelakang akademik yang disyaratkan, our contractors and consultants were juga boleh diberi kenaikan pangkat, involved in training relating to safety and bergantung kepada prestasi, kekosongan health measures in construction. This jawatan serta sokongan dari Ketua training will go a long way in ensuring Jabatan mereka dan kelulusan daripada that construction-related accidents, pihak pengurusan atasan. hazards and risks are minimised. Selaras dengan matlamat kami untuk memantapkan kecekapan modal insan kami, JLand terus mengenengahkan 34 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Some 22 of our Internal Quality Auditors and integrating monitoring and measuring Seramai 22 orang Juruaudit Kualiti Dalaman underwent a refresher course to improve activities into key business processes, we kami telah menjalani kursus peningkatan their audits skills as well as sharing the are strengthening our internal work culture kefahaman bagi memantapkan lagi kemahiran sum of their experiences and knowledge and becoming more effective. Even as audit mereka di samping berkongsi with one another. On top of this, we we commit to maintaining the highest pengalaman dan pengetahuan antara satu sama lain. Selain itu, kami telah mengendalikan conducted two courses to enhance the standards of quality in the products and dua kursus bagi mempertingkatkan konsep concept and culture of “Kerja Sebagai services we deliver, our quality serta budaya “Kerja Sebagai Ibadah” – kerja Ibadah”– work and career as a means of management system ensures that the dan kerjaya sebagai wadah untuk melakukan doing good and attaining spiritual focus on competitive pricing, high quality kebaikan dan memenuhi kepuasan rohaniah. fulfilment. We plan to conduct four more products, on-time delivery and excellent Kami merancang untuk mengadakan empat similar sessions in 2009. The year also customer service is sustained throughout lagi sesi yang sama pada tahun 2009. Tahun saw 34 of our technical employees the Group. ini turut menyaksikan 34 anggota pekerja undergoing refresher courses and sharing teknikal kami menjalani kursus peningkatan experiences and knowledge relating to The journey to quality excellence is a kefahaman dan berkongsi pengalaman serta building specifications. This programme never-ending one and to keep ourselves pengetahuan yang berkaitan dengan aims to ensure that the quality of our constantly on our toes, we are actively spesifikasi binaan. Program ini bertujuan products is in line with the required pursuing quality initiative such as JLand’s memastikan bahawa kualiti produk-produk kami adalah selaras dengan keperluan industry standards. Another six of these Innovative Creative Circle (“ICC”) and piawaian industri. Enam lagi program sebegini programmes will be organised in 2009. Suggestion Scheme. Our quality akan dilaksanakan pada tahun 2009. improvement initiatives have not only JLand’s Social and Recreation Club also helped us to deliver better quality products Kelab Kebajikan dan Rekreasi JLand turut undertook various fun-filled and family- and services, they have helped elevate melaksanakan pelbagai aktiviti yang amat oriented activities over the course of the the confidence and esteem of JLand’s menceriakan dan berbentuk kekeluargaan di year which included the Group’s Sports staff and have contributed significantly to sepanjang tahun, termasuk Kejohanan Sukan Day and Recreation Program With building a stronger team of high achievers. Kumpulan dan Program Beriadah Bersama Families at Sunway Lagoon. On top of In 2008, our ICC teams continued to give Keluarga di Sunway Lagoon. Selain itu, this, employees took part in the “Program of their best at the National Level Quality anggota pekerja juga mengambil bahagian Tadarus Al-Quran” organised for Convention with five of our teams (i.e. dalam “Program Tadarus Al-Quran” yang employees over the Ramadan month as B’ONN, TOP Q, X-BEST, Symbiosis and dikendalikan untuk anggota pekerja di well as breaking of fast and Hari Raya Q&D) receiving the Three Gold Star sepanjang bulan Ramadan di samping aktiviti berbuka puasa dan sambutan Hari Raya. festive activities. Awards. Team B’ONN was named Overall Winner for the Services Sector (National Level) and the best among the top 10 INISIATIF KECEMERLANGAN KUALITI QUALITY IMPROVEMENT INITIATIVES teams. JLand was aptly chosen to receive Inisiatif pengurusan kualiti Kumpulan Appreciation Partner in Competitiveness The Group’s quality management membentuk sebahagian penting proses bisnes Creativity and Innovation Programme initiatives form an integral part of our core teras kami serta menyerlahkan iltizam kami business processes and highlight our Category (Service Sector) 2008 by untuk terus memantapkan semua aspek commitment to continually improving all Malaysia Productivity Corporation, prestasi bisnes. Sedang JLand memberikan aspects of business performance. As attesting to the high standards of our penumpuan kepada kecenderungan terhadap JLand focuses on being quality-inclined products and services. kualiti dan menyerapkan aktiviti pemantauan serta pengukuran ke dalam proses bisnes Laporan Tahunan 2008 Annual Report • Johor Land Berhad 35

utama, kami turut memperkukuhkan budaya kerja dalaman kami dan menjadikannya lebih berkesan. Dalam kami beriltizam untuk mengekalkan tahap kualiti yang tertinggi dalam produk serta perkhidmatan yang kami berikan, sistem pengurusan kualiti kami memastikan bahawa fokus terhadap penetapan harga yang kompetitif, produk berkualiti tinggi, penyerahan yang tepat pada masanya serta perkhidmatan pelanggan yang cemerlang dikekalkan di serata Kumpulan.

Perjalanan ke arah kecemerlangan kualiti merupakan perjalanan yang tiada penghujungnya dan demi memastikan kami sentiasa bersedia, kami aktif meneruskan inisiatif kualiti seperti Innovative Creative Circle (“ICC”) dan Skim Cadangan JLand. Inisiatif penambahbaikan kualiti kami bukan sekadar membantu kami memberikan kualiti produk serta perkhidmatan yang lebih baik, malah ia telah membantu meningkatkan keyakinan dan harga diri anggota pekerja JLand serta banyak menyumbang kepada pembinaan sebuah pasukan yang lebih mantap yang terdiri daripada mereka yang berjaya meraih kejayaan cemerlang. Pada tahun 2008, kumpulan ICC kami terus memberikan yang terbaik di Konvensyen Kualiti Peringkat Kebangsaan dengan lima daripada kumpulan kami iaitu B’ONN, TOP Q, X-BEST, Symbiosis dan Q&D menerima Anugerah Emas Tiga Bintang. Kumpulan B’ONN telah dipilih sebagai Pemenang Keseluruhan untuk Sektor Perkhidmatan Peringkat Kebangsaan dan 10 Kumpulan Terbaik. Justeru, JLand telah dinobatkan sebagai penerima Penghargaan Rakan Daya Saing Program Kreativiti dan Inovasi (Kategori Perkhidmatan) 2008 oleh Perbadanan Produktiviti Malaysia, seterusnya membuktikan ketinggian standard produk dan perkhidmatan kami. 36 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

CORPORATE RESPONSIBILITY PROGRAMME Corporate Responsibility (“CR”) has long been an integral part of the JLand’s business philosophy. Creating value for all stakeholders including our shareholders, employees, regulatory authorities, customers and the communities we operate in, is essential to our long term success and sustained growth. We seek to enrich the lives of the needy and less fortunate through sponsorship assistance to NGOs, charitable organisations and welfare institutions. Even as we reach out to the communities we operate in, we in turn are touched by the many lives we have impacted and have became a better company because of this.

In fulfilling our responsibilities to the community, we invested close to RM0.5 million for our 2008 CR programme. This included initiatives to enrich the community through a focus on education. As a major sponsor for “Tunas Bistari”, an entrepreneurs’ development programme organised by Johor Corporation in collaboration with the Education Department of Johor, we channelled some RM150,000.00 towards the year’s programme. This programme involves students from secondary schools throughout Johor coming together to set up their own companies and acquire the requisite knowledge and experience to become good entrepreneurs. To date, JLand has contributed more than RM1.5 million to the programme since 2001. We also organised and sponsored the “Bengkel UPSR” preparatory programme for 250 students of Sekolah Kebangsaan Taman Cendana and Sekolah Kebangsaan Pasir Gudang 4 in collaboration with the Education Department of Berita Harian. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 37

Program TANGGUNGJAWAB Sokongan kami terhadap komuniti KORPORAT sepanjang tahun 2008 termasuklah Tanggungjawab Korporat sudah lama sumbangan berjumlah RM120,000.00 menjadi sebahagian penting falsafah kepada rumah anak yatim Darul Hanan perniagaan JLand. Mencipta nilai untuk di Pasir Gudang. Sehingga kini, JLand semua pihak yang berkepentingan telah mendermakan lebih daripada termasuk para pemegang saham, anggota RM1.82 juta kepada Darul Hanan sejak pekerja, pihak berkuasa kawal selia, ia ditubuhkan pada tahun 1996. Sejumlah pelanggan serta komuniti di mana kami RM30,000.00 turut disalurkan kepada beroperasi adalah penting untuk kejayaan Tabung Tijarah Ramadan, iaitu sebuah kami dalam jangka panjang dan program televisyen yang disiarkan pada pertumbuhan yang mapan. Kami berusaha bulan Ramadan. Dikelolakan oleh Johor memperbaiki kehidupan golongan yang Corporation dan Jabatan Kemajuan memerlukan dan kurang bernasib baik Islam Malaysia (“JAKIM”), program menerusi bantuan penajaan kepada televisyen ini telah dirangka khusus Our support for the community over 2008 Organisasi Bukan Kerajaan, badan amal untuk membantu golongan miskin dan included a contribution of RM120,000.00 dan institusi kebajikan. Dalam kami kurang bernasib baik dalam komuniti. to the Darul Hanan orphanage in Pasir menghulurkan bantuan kepada komuniti Sehingga kini, sebanyak RM150,000.00 Gudang. To date, JLand has donated di mana kami beroperasi, kami kembali telah disumbangkan kepada Program more than RM1.82 million to Darul Hanan tersentuh dengan begitu banyak kehidupan Tijarah sejak ia dilancarkan pada tahun since the latter’s inception in 1996. A yang berjaya diubah, lantas menjadikan 2005. Kami turut menyalurkan sum of RM30,000.00 was also channelled kami sebuah syarikat yang lebih baik. RM20,000.00 kepada Festival Layang- to the “Tabung Tijarah Ramadan”, a TV Layang Antarabangsa dan RM10,000.00 programme aired during the Ramadan Dalam memenuhi tanggungjawab kami kepada Kejohanan Golf Natoleo Waqaf fasting month. Organised by Johor terhadap komuniti, kami telah melaburkan An-Nur Pasir Gudang. Selain itu, JLand Corporation and Jabatan Kemajuan Islam hampir RM0.5 juta untuk program telah melaksanakan Program Kitar Malaysia (“JAKIM”), this TV production is Tanggungjawab Korporat pada tahun Semula dalam komuniti Taman Bukit specially designed to help the poor and 2008. Ini termasuklah inisiatif untuk Dahlia bagi menerapkan rasa kesedaran less privileged in the community. To date, memperkayakan komuniti menerusi terhadap alam sekitar di kalangan para RM150,000.00 was contributed to The tumpuan terhadap pendidikan. Sebagai penduduk setempat. Tijarah Programme since its launching in penaja utama Tunas Bistari, iaitu sebuah 2005. We also channelled RM20,000.00 program pembangunan usahawan yang to the International Kites Festival and dianjurkan oleh Johor Corporation dengan RM10,000.00 to the Natoleo Waqaf kerjasama Jabatan Pelajaran Johor, kami An-Nur Pasir Gudang Golf Tournament. telah menyalurkan sejumlah RM150,000.00 On top of this, JLand initiated a community kepada program ini untuk tahun 2008. recycling initiative at Taman Bukit Dahlia Program ini melibatkan para pelajar to inculcate a sense of environmental daripada sekolah menengah di seluruh consciousness among the area’s Johor bekerjasama menubuhkan syarikat residents. mereka sendiri dan meraih pengetahuan serta pengalaman yang diperlukan untuk menjadi usahawan berjaya. Sehingga kini, JLand telah menyumbang lebih dari RM1.5 juta kepada program tersebut sejak tahun 2001. Kami turut menganjur dan menaja program persediaan Bengkel UPSR untuk 250 pelajar Sekolah Kebangsaan Taman Cendana dan Sekolah Kebangsaan Pasir Gudang 4 menerusi kerjasama dengan Bahagian Pendidikan Berita Harian. 38 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

OUTLOOK AND PROSPECTS three times to 2% from 3.5% in November PROSPEK DAN MASA DEPAN Operating Environment 2008 (after leaving the OPR unchanged Persekitaran Operasi The global economy is in the throes of an at 3.5% for about three years). The Ekonomi global kini berada di ambang unprecedented downturn. Despite Statutory Reserve Requirement (“SRR”) kemelesetan yang tidak pernah berlaku concerted interest rate cuts and liquidity was also adjusted downwards from 2.0% sebelumnya. Sungguhpun terdapat potongan injection, the global credit crisis continues to 1.0% effective 1 March 2009 to further kadar cukai yang bersepadu dan suntikan kecairan, krisis kredit global terus meruncing to deepen with little sign of abating. The reduce the cost of intermediation. dengan tiada tanda akan reda. Tabung International Monetary Fund has projected Fiscal pump-priming of the Malaysian Kewangan Antarabangsa telah mengunjurkan world growth to fall to 0.5% in 2009, the pertumbuhan dunia akan jatuh kepada 0.5% economy has been stepped up following lowest rate since World War II. The US pada tahun 2009, iaitu kadar terendah sejak the tabling of a second stimulus package economy is forecast to contract 1.65%, Perang Dunia Kedua. Ekonomi Amerika the European Union 2%, and Japan worth RM60 billion in Parliament on Syarikat diramalkan akan menguncup 1.65%, 2.6%. Growth is expected to slow to 6.7% 10 March 2009. This mini budget aims to Kesatuan Eropah 2% dan Jepun 2.6%. in China and 5.1% in India, while the help companies and workers affected by Pertumbuhan dijangka akan perlahan kepada ASEAN-5 is expected to experience some the global slowdown. It comes in the 6.7% di China dan 5.1% di India, sementara 2.7% growth. wake of the first stimulus package worth ASEAN-5 dijangka akan mengalami RM7 billion announced in November pertumbuhan dalam anggaran 2.7%. In Malaysia, there has been little 2008, of which more than 70% has been Di Malaysia, tidak ada kesepakatan yang jitu consensus over our projected economic disbursed at the time of writing. While berhubung unjuran pertumbuhan ekonomi growth for 2009. At the time of writing, in global efforts have been intensified to bagi tahun 2009. Ketika penyata ini ditulis, view of the deeper decline in macro counter the effects of the slowdown, risks remain on the downside and recovery is berdasarkan kepada penurunan yang indicators, the Malaysian Institute of semakin meruncing dalam penunjuk makro, likely to be slow and protracted all around. Economic Research and Bank Negara Institut Penyelidikan Ekonomi Malaysia dan While there are predictions of a marginal Malaysia on altogether different fronts Bank Negara Malaysia telah mengkaji have revised GDP growth downwards to improvement in Malaysia’s growth to semula penurunan pertumbuhan KDNK, 1.3% and between –1% and 1% 3.8% in 2010 in line with the World masing-masing kepada 1.3% dan di antara respectively. Increasing job losses, worse- Bank’s forecast of world growth at 3.0% –1% dan 1%. Peningkatan kehilangan than-expected trade numbers from for the same year, only time will tell how pekerjaan, angka dagangan yang lebih teruk Malaysia’s main trading partners, as well this plays out. dari jangkaan daripada rakan niaga utama as slumping industrial production and Malaysia, dan penurunan pengeluaran export figures, are beginning to result in perindustrian serta angka eksport, telah mula mengakibatkan kemerosotan yang pantas rapidly declining business and consumer ISKANDAR MALAYSIA STIMULUS dalam bisnes serta keyakinan pengguna bila confidence as the reality of an impending Since its launch in November 2006, mana hakikat akan berlakunya kemelesetan recession begins to sink in. Iskandar Malaysia had received RM43 mula dirasai. billion worth of investments, far exceeding Prompted by the sharper deterioration of the initial target of RM47 billion by the Didorong oleh kemerosotan ekonomi global the global economy in the fourth quarter year 2010. Investments into Iskandar yang lebih runcing pada suku keempat tahun of 2008 and the increased risk of Malaysia are expected to create a spill- 2008 serta meningkatnya risiko penguncupan contraction of the Malaysian economy, over effect on other parts of the state of ekonomi Malaysia, Bank Negara Malaysia Bank Negara Malaysia has to date cut its Johor. The arrival of investors, be they buat masa ini telah mengurangkan tanda benchmark Overnight Policy Rate (“OPR”) local or foreign investors, is expected to aras Kadar Polisi Semalaman (“OPR”) Laporan Tahunan 2008 Annual Report • Johor Land Berhad 39

sebanyak tiga kali kepada 2% daripada 3.5% pada November 2008 (setelah membiarkan OPR tidak berubah pada kadar 3.5% selama lebih kurang tiga tahun). Keperluan Rizab Berkanun (“SRR”) turut dilaraskan menurun daripada 2.0% kepada 1.0% berkuatkuasa 1 Mac 2009 bagi mengurangkan lagi kos pengantaraan.

Rangsangan fiskal ekonomi Malaysia telah dipertingkatkan berikutan pembentangan pakej rangsangan kedua bernilai RM60 bilion di Parlimen pada 10 Mac 2009. Bajet mini ini bertujuan untuk membantu syarikat- syarikat dan para pekerja yang terjejas oleh kegawatan global. Ia hadir selepas pakej rangsangan pertama yang bernilai RM7 bilion diumumkan pada November 2008, yang mana lebih dari 70% telahpun diagihkan sewaktu penyata ini ditulis. Meskipun usaha global telah dipertingkatkan bagi mengekang kesan kegawatan, namun risiko kekal suram dan pemulihan berkemungkinan perlahan serta berlanjutan di serata tempat. Sungguhpun terdapat ramalan peningkatan yang marginal dalam pertumbuhan ekonomi Malaysia kepada 3.8% pada tahun 2010, yakni selaras dengan ramalan Bank Dunia tentang pertumbuhan ekonomi dunia pada kadar 3.0% untuk tahun yang sama, namun hanya masa yang akan menentukannya.

RANGSANGAN ISKANDAR MALAYSIA Sejak pelancarannya pada November 2006, Iskandar Malaysia telah menerima pelaburan bernilai RM43 bilion, jauh menjangkaui sasaran awal sebanyak RM47 bilion menjelang tahun 2010. Pelaburan ke atas Iskandar Malaysia dijangka akan mewujudkan kesan limpahan ke kawasan-kawasan lain di negeri Johor. Kedatangan para pelabur, sama ada pelabur tempatan atau asing, dijangka akan mewujudkan peluang 40 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

create manifold job opportunities in this region, while the presence of new residents bodes well for the property market in Southern Johor. Under the Ninth Malaysian Plan (“9MP”), the Federal Government has allocated RM6.8 billion for infrastructure projects in Iskandar Malaysia. To date, some 18 projects worth RM1.6 billion that include road packages, drainage projects and river cleaning jobs, have been awarded. Ultimately, once all these infrastructural development projects come on-stream, they will transform Johor into a world class community.

The fact that JLand’s land banks are strategically located right at the centre of Iskandar Malaysia, bodes immensely well for us. All in all, the Group is looking at an estimated GDV of more than RM7 billion when these land banks are eventually developed over the next 10 to 15 years.

GOING FORWARD Going forward into 2009, as a result of deteriorating global economic conditions, the Malaysian economy is expected to register lower growth. Consequently, the property market is expected to soften further even as property prices and demand weakens between 5% and 10% in 2009. Mindful of the economic challenges on several fronts, JLand will continue to take prudent and appropriate measures to enable us to sustain our performance.

Akin to other property players, JLand has adopted a cautious stance amidst this tough and uncertain operating environment. To ride out this troubled period, we will maintain our primary focus on preserving capital value while undertaking cost mitigating measures and deferring or staggering our launches. Notwithstanding the flagging economy, the Group expects to sustain our performance for 2009 as we take prudent measures to keep construction costs in check and price our Laporan Tahunan 2008 Annual Report • Johor Land Berhad 41

pekerjaan yang berbagai di rantau ini, merosot, Kumpulan menjangkakan dapat manakala kehadiran penghuni baru mengekalkan prestasi kami untuk tahun membawa petanda baik bagi pasaran 2009 dengan mengambil langkah yang hartanah di Selatan Johor. Di bawah bijak untuk mengawasi kos pembinaan Rancangan Malaysia Kesembilan dan menetapkan harga yang kompetitif (“RMK9”), Kerajaan Persekutuan telah untuk produk kami. Kami juga akan terus memperuntukkan RM6.8 bilion untuk bersikap proaktif dalam mengenal pasti projek prasarana di Iskandar Malaysia. keutamaan pasaran dan akan mencipta Sehingga kini, lebih 18 projek bernilai produk-produk baru yang seiring dengan RM1.6 bilion termasuk pakej jalan raya, keperluan pasaran. Strategi ini akhirnya projek saliran serta kerja-kerja akan membentuk dan memacu penjualan pembersihan sungai telahpun diberikan. produk-produk kami. Apabila kesemua projek pembangunan prasarana ini mula beroperasi, ia akan Strategi bisnes Kumpulan telah dirumus merubah Johor menjadi sebuah komuniti berdasarkan permintaan pasaran di bertaraf dunia. kawasan geografi Pasir Gudang, Ulu Tiram dan Tebrau. Setiap kawasan ini products competitively. We will also Hakikat bahawa simpanan tanah JLand mengguna pakai strategi bisnes yang continue to be proactive in identifying terletak di lokasi yang strategik, iaitu tepat berlainan mengikut permintaan pasaran. market preferences and will develop new di tengah-tengah Iskandar Malaysia Contohnya, hartanah kami di Bandar products in line with market needs. This merupakan petanda yang amat baik buat Dato’ Onn mensasarkan pembeli rumah strategy will ultimately shape and drive kami. Secara keseluruhannya, Kumpulan yang mahukan peningkatan serta the sales of our products. menganggarkan GDV melebihi RM7 bilion penerapan ciri-ciri dan konsep yang apabila simpanan tanah ini dimajukan berbeza dari segi perancangan susun The Group’s business strategies have kemudiannya dalam tempoh 10 hingga atur, reka bentuk dan kemasan. Kami been formulated based on market demand 15 tahun akan datang. akan terus melakukan kaji selidik produk in the geographical areas of Pasir yang lebih mendalam serta inisiatif Gudang, Ulu Tiram and Tebrau. Each of pembangunan bagi memastikan produk- produk kami adalah berasaskan pasaran these areas has adopted a different MELANGKAH KE HADAPAN dan boleh diterima pembeli. Para pembeli business strategy depending on market Dalam melangkah ke tahun 2009, akibat daripada keadaan ekonomi global yang hari ini lebih menitikberatkan unsur-unsur demand. For example, our properties at keselamatan di samping memastikan Bandar Dato’ Onn target those home kian merosot, ekonomi Malaysia dijangka akan mencatatkan pertumbuhan yang persekitaran yang sejahtera buat seluruh buyers looking to upgrade and incorporate lebih rendah. Justeru itu, pasaran keluarga. Oleh kerana itu kami harus differential features and concepts in terms hartanah dijangka akan bertambah melakukan peningkatan secara konsisten, of layout planning, design and finishes. lembab dengan harga hartanah dan mengekalkan kreativiti kami dan bersikap We will continue to conduct more in-depth permintaan menurun antara 5% dan 10% inovatif dalam usaha kami untuk product research and development pada tahun 2009. Menyedari akan memuaskan keinginan dan keperluan initiatives to ensure that our products are cabaran ekonomi berhubung beberapa para pelanggan kami yang bijak menilai. market-oriented and acceptable to buyers. perkara, JLand akan terus mengambil Today’s buyers are more concerned with langkah yang bijak dan wajar bagi Kami akan terus meneroka peluang projek yang baru serta memajukan simpanan the elements of security and ensuring a membolehkan kami mengekalkan prestasi. tanah kami yang sedia ada di Tebrau, Ulu Tiram dan Pasir Gudang. Kami akan Seperti mana penggiat hartanah yang terus membina jenama JLand, mencipta lain, JLand mengamalkan sikap berhati- konsep pembangunan yang menarik serta hati berdasarkan persekitaran operasi menghasilkan rumah berkualiti dan yang sukar dan tidak menentu. Dalam perjiranan yang tersendiri buat para mengharungi tempoh yang sukar ini, kami pelanggan di perbandaran yang telah akan mengekalkan tumpuan utama kami siap kami majukan. Kami juga akan untuk memelihara nilai modal sambil mencari peluang-peluang baru bagi melaksanakan langkah-langkah mempelbagaikan portfolio bisnes kami pengurangan kos serta menunda serta meneroka aliran keuntungan yang pelancaran atau melakukannya secara berperingkat. Sungguhpun ekonomi 42 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

wholesome environment for the entire APPRECIATION akan melengkapkan operasi teras kami family. As such we need to consistently JLand has much to be thankful for. Above dalam pembangunan hartanah. Bagi mengekalkan kemapanan pertumbuhan make improvements, maintain our all, we have been blessed with a resilient jangka panjang, JLand akan menimbangkan creativity and be innovative as we work and dedicated network of supporters. On to satisfy the needs and requirements of pemilikan tanah tambahan di kawasan- behalf of the Board of Directors, allow us kawasan penting di mana-mana lokasi these discerning customers. to say how truly appreciative we are of strategik yang lain di dalam negara. Kami our shareholders, customers, financiers, akan gigih berusaha bagi memastikan We will continue to explore new project business associates, and consultants as sebarang kerja sama yang berpotensi akan opportunities and develop our existing well as the many government departments menghasilkan perolehan yang teguh serta land banks in Tebrau, Ulu Tiram and who have steadfastly supported over the pulangan buat para pemegang saham. Pasir Gudang. We will continue to build years. Our heartfelt gratitude goes to the Secara amnya, kami percaya bahawa up the JLand brand, create interesting multitude of home buyers who have keseluruhan usaha ini akan dapat membantu development concepts and deliver quality shown their confidence in our houses and Kumpulan mengharungi kemelesetan homes and distinctive neighbourhood to neighbourhoods. Our success is in no ekonomi dan memberikan kami asas yang kukuh untuk melonjak jauh apabila keadaan our customers in our established small way owing to our committed and pasaran kembali pulih. townships. We will also look at new hard working management and staff who opportunities to diversify our business continue to display a spirit of excellence portfolio and explore revenue streams in all that they undertake. Last but not PENGHARGAAN that will complement our core property least, our sincere appreciation to all fellow Terdapat banyak perkara yang perlu JLand development operations. To maintain Directors for their wisdom and insights. sustainable long-term growth, JLand will syukuri. Paling penting, kami telah dianugerahkan kelompok penyokong yang consider the acquisition of additional land As we set our sights on becoming the teguh serta berdedikasi. Bagi pihak Lembaga in prime areas within strategic locations leading property company in this part of Pengarah, izinkan kami menyatakan betapa elsewhere in the country. We will the world, we invite all our stakeholders kami amat menghargai para pemegang undertake the necessary due diligence to join us as we continue on our journey saham, pelanggan, pembiaya, rakan measures to ensure that any potential to success. Rest assured that we at perniagaan dan konsultan serta jabatan- venture will generate good revenue JLand will work hard to tap every jabatan kerajaan yang teguh menyokong streams and strong shareholder returns. opportunity and overcome all challenges kami selama bertahun-tahun. Penghargaan All in all, we believe that the sum of before us. We trust that you will continue ini turut ditujukan kepada ribuan pembeli these efforts will help the Group ride out to lend us your unwavering support as rumah yang telah memperlihatkan keyakinan the economic downturn and provide us we press on to greater heights. mereka terhadap kediaman dan kawasan with a strong base to launch out from perjiranan kami. Kejayaan kami banyak when market conditions return to normal. bergantung kepada pihak pengurusan serta anggota pekerja kami yang komited dan rajin berusaha dengan terus memperlihatkan semangat yang cemerlang dalam setiap apa yang mereka lakukan. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 43

Akhir kata, penghargaan kami yang seikhlasnya buat semua anggota Pengarah di atas kebijaksanaan dan pengetahuan mereka yang mendalam.

Dalam usaha kami menumpukan perhatian untuk menjadi sebuah syarikat hartanah terulung di rantau ini, kami menjemput semua pihak yang berkepentingan untuk bersama kami dalam meneruskan perjalanan menggapai kejayaan. Kami memberi jaminan bahawa kami di JLand akan bekerja keras untuk mencari setiap peluang dan mengatasi semua cabaran yang dihadapi. Kami percaya anda akan terus memberikan kami sokongan yang tidak berbelah bagi dalam kami berusaha menggapai kejayaan cemerlang.

TAN SRI DATO’ MUHAMMAD ALI HASHIM Chairman / Pengerusi

A.F.M SHAFIQUL HAFIZ Managing Director / Pengarah Urusan 44 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

2008 Corporate Diary Diari Korporat 2008

Pedoman Meeting was held at Official Launching of Tunas Chinese New Year Carnival with JLand participated in “Maulidur Main Hall, Kompleks Mutiara Bistari 2008. JLand contributed customers at Sales Office, Tiram. Rasul 2008” at Masjid Jamek, Johor Land, Jalan Bukit Mutiara, RM150,000.00 to the program. Pasir Gudang. Karnival Tahun Baru Cina Bandar Dato’ Onn, Johor Bahru. Majlis Pelancaran Tunas Bistari bersama para pelanggan di JLand menyertai Majlis Maulidur Mesyuarat Pedoman diadakan 2008. JLand menyumbang Pejabat Jualan, Tiram. Rasul 2008 di Masjid Jamek, di Dewan Utama, Kompleks RM150,000.00 untuk program Pasir Gudang. Mutiara Johor Land, Jalan Bukit berkenaan. Mutiara, Bandar Dato’ Onn, Johor Bahru.

04 Jan/Jan 05 Feb/Feb 24 Feb/Feb 20 Mar/Mac

21 May/Mei 14 June/Jun 21 Aug/Ogos 24 Aug/Ogos

The 33rd Annual General “Malam MPC bersama Industri” Official launching of Tijarah “Majlis Ramah Mesra, Gotong Meeting and Extraordinary organised by Malaysia Productivity Ramadan Fourth (4th) Season Royong dan Kitar Semula” General Meeting of JLand was Corporation was held at Sapphire was held at Tun Hussein Onn organised by Johor Land Berhad held at Main Hall, Kompleks Hall, Mandarin Oriental Hotel, Hall, Putra World Trade Centre. with residents of Pesona and Mutiara Johor Land, Jalan Bukit Kuala Lumpur. JLand was JLand contributed RM30,000.00 Indah, Taman Bukit Dahlia, Pasir Mutiara, Bandar Dato’ Onn, awarded the Appreciation Partner to the program. Gudang. Johor Bahru. in Competitiveness Creativity and Innovation Programme Category Majlis Pelancaran Tijarah Majlis Ramah Mesra, Gotong Mesyuarat Agung Tahunan kali (Services Sector). Ramadan Musim ke Empat (4) Royong dan Kitar Semula anjuran ke 33 dan Mesyuarat Agung telah diadakan di Dewan Tun Johor Land Berhad bersama para Luarbiasa JLand diadakan di Malam MPC bersama Industri Hussein Onn, Pusat Dagangan penduduk Pesona dan Indah, dianjurkan oleh Perbadanan Dewan Utama, Kompleks Dunia Putra. JLand menyumbang Taman Bukit Dahlia, Pasir Produktiviti Malaysia telah Mutiara Johor Land, Jalan Bukit RM30,000.00 untuk program Gudang. diadakan di Dewan Sapphire, Mutiara, Bandar Dato’ Onn, tersebut. Hotel Mandarin Oriental, Kuala Johor Bahru. Lumpur. JLand telah dianugerahkan Penghargaan Rakan Daya Saing Program Kreativiti dan Inovasi (Kategori Perkhidmatan). Laporan Tahunan 2008 Annual Report • Johor Land Berhad 45

Exclusive Interview by “Bengkel UPSR” organised by Labour Day Party with customers Sales launching of double storey Media with Mr A.F.M Johor Land Berhad in collaboration at Show Houses, Bandar Dato’ semi-detached houses “Perdana Shafiqul Hafiz, Managing with the Berita Harian was held Onn, Johor Bahru and Sales Dahlia Phase 2” at Sales Office, Director of JLand. at Selesa Hotel, Pasir Gudang. Office, Tiram. Taman Bukit Dahlia, Pasir 250 students were involved in the Gudang. Temuramah Eksklusif oleh program. Parti Hari Buruh bersama para Media bersama En A.F.M pelanggan di Rumah Contoh, Pelancaran jualan rumah Bengkel UPSR anjuran Johor Shafiqul Hafiz, Pengarah Land Berhad dengan kerjasama Bandar Dato’ Onn, Johor Bahru berkembar dua tingkat “Perdana Urusan JLand. Berita Harian diadakan di Hotel dan Pejabat Jualan, Tiram. Dahlia Fasa 2” di Pejabat Jualan, Selesa, Pasir Gudang. 250 orang Taman Bukit Dahlia, Pasir pelajar terlibat dalam program ini. Gudang.

01 Apr/Apr 05-06 Apr/Apr 04 May/Mei 10 May/Mei

16 Sep/Sep 17 Sep/Sep 20 Oct/Okt 12-14 Nov/Nov

The ICC Convention JLand Student Visit from University “Mesra Ria Aidilfitri” for staff was JLand participated in “Hari Mekar” 2008 was held at Main Hall, Technology of Malaysia, Skudai, held at Main Hall, Kompleks Johor Corporation, which was Kompleks Mutiara Johor Johor. Mutiara Johor Land, Jalan Bukit held at Persada Johor International Land, Jalan Bukit Mutiara, Mutiara, Bandar Dato’ Onn, Johor Convention Centre, Johor Bahru. Lawatan Pelajar dari Universiti Bandar Dato’ Onn, Johor Bahru. Teknologi Malaysia, Skudai, JLand menyertai Hari Mekar Bahru. Johor. Majlis Mesra Ria Aidilfitri untuk Johor Corporation yang telah Konvensyen ICC JLand anggota pekerja telah diadakan di diadakan di Pusat Konvensyen 2008 telah diadakan di Dewan Utama, Kompleks Mutiara Antarabangsa Persada Johor, Dewan Utama, Kompleks Johor Land, Jalan Bukit Mutiara, Johor Bahru. Mutiara Johor Land, Jalan Bandar Dato’ Onn, Johor Bahru. Bukit Mutiara, Bandar Dato’ Onn, Johor Bahru. 46 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Audit Committee Report

Terms of Reference Composition The Audit Committee was established on 2 September 1996 to act as a Committee for the The Board shall elect an Audit Committee, Board of Directors. comprising not fewer than three members of whom the majority must be Independent Directors. The Chairman of the Audit Committee shall be appointed by the Composition of Members Board. Members No. of meetings Percentage attended Meetings of the Audit Committee Kua Hwee Sim (Chairman) 5 out of 5 100% 1. The Audit Committee is to meet not Independent Non Executive Director less than four (4) times a year. (appointed as Chairman w.e.f 15 February 2007) 2. The quorum for each meeting shall Dato Hj Hassan bin Hj Mohd Yunos 5 out of 5 100% be two (2) members of the Audit Independent Non Executive Director Committee both of whom shall be (appointed as Member w.e.f 1 May 2007) Independent Directors. Lukman bin Hj. Abu Bakar 4 out of 5 *80% 3. The Audit Committee may regulate Non Independent Non Executive Director its own procedures in respect of the (appointed as Member w.e.f 15 August 2006) convening of meetings, the notice to be given of such meetings, the *overseas voting and proceedings thereof, the keeping of minutes and the custody, production and inspection of such Objectives minutes. The objectives of the Audit Committee are:- 4. The Chairman of the Audit 1. To ensure compliance with Paragraph 15, Part C of the Bursa Malaysia Securities Committee shall submit a report of Berhad (“Bursa Securities”) Listing Requirements. each meeting to the Board.

2. To ensure the independence of the External Auditors, the integrity of management 5. The Managing Director, the Group and the adequacy of disclosures to shareholders. Financial Controller and the Head of Internal Audit attended all meetings. 3. To assist the Board of Directors in fulfilling its fiduciary responsibilities by ensuring Other members of senior that the results of internal and external audit findings are fully considered and properly management attended some of the resolved. meetings upon invitation by the Audit Committee. The Company Secretary is the Secretary to the Audit Committee. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 47

6. During the financial year ended 31 Functions 7. The quarterly results and yearly December 2008 the Audit Committee Pursuant to Para 15.13 of the Bursa financial statements, prior to the held a total of 5 meetings. The Securities Listing Requirements, the Audit approval by the Board, focusing details of attendance of the Audit Committee amongst others, shall review, particularly on:- Committee Members are as per table appraise and report to the Board on:- (i) Changes in major accounting above. 1. The appointment of the External policies and their implementation Auditors, their audit fees and in the and the effects of such changes; Authority event of their resignation or dismissal with full explanatory statements. The Audit Committee is authorised by the (ii) Significant and unusual events; Board:- and 2. The adequacy of the scope, functions, 1. To investigate any matters within its competency and resources of the (iii) Compliance with stated terms of reference; internal audit function and results of accounting standards and other the internal audit procedures. legal requirements. 2. To have the resources which are required to perform its duties; 3. The quality and effectiveness of the 8. Any related party transactions and entire accounting and internal control conflict of interest situation that may 3. To have full and unrestricted access system of the Group. arise, including any transactions, to any information pertaining to the procedures or course of conduct that listed issuer; 4. The adequacy of the audit effort raise question of management by both the External and Internal integrity. 4. To have direct communication Auditors. channels with the external auditors 9. The assistance given by the and person(s) carrying out the 5. The adequacy of the disclosures of employees to the External Auditors. internal audit function or activity (if information essential to give a true any); and fair presentation of the financial 10. Any such other functions as may be affairs of the Group. agreed to by the Audit Committee 5. To be able to obtain independent and the Board. professional or other advice; 6. Any material discoveries of adjustments made by the External or 6. To be able to convene meetings with Internal Auditors. Summary of Activities the External Auditors, the Internal The Audit Committee has during the Auditor or both, excluding the financial year ended 31 December 2008 attendance of other directors and discharged the following functions:- employees of the company, whenever 1. Reviewed the unaudited quarterly deemed necessary. results and financial statements of the Company and its subsidiaries. 48 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Audit Committee Report

2. Reviewed the financial statements Statement on Internal Audit of the Group and Company for the Function financial year ended 31 December The Internal Audit Function of the 2008 with the External Auditors and Company is to independently perform all discussed before it was approved the planned activities with impartiality, by the Board. proficiency and due professional care. The Internal Audit Function is perform 3. Reviewed and endorsed the Audit in-house and to provide independent Plan of the Group for the financial assurance on the efficiency and year ended 31 December 2009. effectiveness of the internal control implemented by Management. In this 4. Deliberated Audit Report on audit context, the Internal Audit Function forms assignments. an integral part of the management process. 5. Reviewed and discussed recent developments on accounting and The Head of the Internal Audit will report auditing standards issued by the directly to the Audit Committee. The Malaysian Accounting Standards scopes of work undertaken by Internal Board. Audit Function are broadly divided into three categories: 6. Reviewed the related party transactions entered into by the 1. operational audit – compliance; Company and JCorp Group of 2. special audit; Companies. 3. operational audit – technical. 7. Met with the External Auditors The cost incurred for Internal Audit without the presence of the Function for the financial year 2008 was Management, pursuant to the Best RM170,421 which include among others, Practices of Malaysian Code of training to enhance the skills and Corporate Governance. competency of the internal auditors.

In carrying out the scope of their duties, the Audit Committee updates the Board from time to time on the issues and concerns discussed during the Audit Committee Meetings including those revised by the External Auditors and where appropriate, make the necessary recommendations to the Board. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 49

50 Statement on Corporate Governance

Corporate 56 Statement on Internal Control

60 Statement on Governance Directors’ Responsibility

61 Additional Disclosure Information 50 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Statement on Corporate Governance

The Board of Directors (“the Board”) of Johor Land Berhad (“JLand” or “the Company”) fully appreciates the importance of exercising high standards of corporate governance in the conduct of the Company’s business and affairs through transparency, accountability and corporate governance.

The Board continues to apply the principles and best practices as governed by the Listing Requirements of Bursa Malaysia Securities Berhad to undertake additional measures, principles and recommendation embodied in Malaysia Code on Corporate Governance and strive to adopt the substance and not merely the form behind the corporate governance prescription.

A. BOARD OF DIRECTORS 2. Board Meeting 1. Board Composition During the financial year under The Board composition is reviewed review, the Board conducted four on a regular basis. The Board (4) meetings to review and discuss comprises members from diverse the Group’s operations, approved professional backgrounds with a quarterly reports and annual financial wide range of business and financial statements. At every meeting, the experience relevant to lead and Board papers were delivered in manage the Company. The Board is advance to facilitate informed responsible for the Company’s decision making. The Board also overall Group strategy and objectives, discussed reports from Audit its major capital expenditure projects Committee and proposals by the and the consideration of significant Management that require the Board’s financial matters. approval. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 51

The attendance record for each Director is as follows:-

Directors No. of meetings attended Percentage

Tan Sri Dato’ Muhammad Ali Hashim 4 out of 4 100% (Non Independent Non Executive Chairman)

Mohd Talhar bin Abdul Rahman *2 out of 4 50% (Non Independent Non Executive Deputy Chairman)

A.F.M Shafiqul Hafiz 4 out of 4 100% (Managing Director)

Kua Hwee Sim 4 out of 4 100% (Independent Non Executive Director)

Dato Hj Hassan bin Hj Mohd Yunos 4 out of 4 100% (Independent Non Executive Director)

Dr Mohd Hafetz bin Ahmad 4 out of 4 100% (Independent Non Executive Director)

Lukman bin Hj. Abu Bakar *3 out of 4 75% (Non Independent Non Executive Director)

Abdul Malek bin Talib 4 out of 4 100% (Non Independent Non Executive Director)

Yusof bin Rahmat *3 out of 4 75% (Non Independent Non Executive Director)

*overseas 52 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Statement on Corporate Governance

3. Board Balance Directors are given access to perspective nominees for the Board The Board presently consists of nine information within the Company and and assess Directors on a regular (9) members, comprising the are free to seek independent basis to ensure the effectiveness of Managing Director, three (3) professional advice at the Company’s the Board for the long term interest Independent Non Executive expense, if necessary, in furtherance of the Company by considering the Directors, and five (5) Non of their duties. Directors are also skills, knowledge, expertise and Independent Non Executive Directors entitled to have access to the advice experience, professionalism and including the Chairman, as required and services of the Company integrity of the candidates. by the Listing Requirements of Secretaries. Bursa Malaysia Securities Berhad. 7. Re-Election The Managing Director has the 5. Directors’ Training In accordance with the Company’s principal responsibility of reporting, Recognising the demands of their Articles of Association, any Director clarifying and communicating matters role as Directors, the Directors of so appointed shall hold office only to the Board. The Board has also the Company continue to equip until the next following Annual appointed Dato Hj Hassan Bin Hj themselves with the relevant General Meeting, and shall then be Mohd Yunos as the Senior professional advancement particularly eligible for re-election. Independent Non Executive Director, in the corporate regulatory to whom concerns may be developments and current In addition at every succeeding conveyed. developments of the industry. All Annual General Meeting, one-third Directors had attended and (1/3) of the Directors, or, if their successfully completed the number is not a multiple of three 4. Supply of Information Mandatory Accreditation programme (3), the number nearest to, but not The Board has a formal schedule of as prescribed by Bursa Securities exceeding one-third (1/3), shall retire matters reserved specifically for the and they were also informed and from office. All Directors shall retire Board’s consideration in ensuring encouraged to attend the professional from office once at least in each the effectiveness of its decisions. programmes organised by various three (3) years and can offer himself The Board is supplied with professional bodies. for re-election at the Annual General information in a timely manner and Meeting. appropriate quality to enable them to discharge their duties and due 6. Appointments to the Board The Managing Director shall subject notice is given to Directors with In the event of a need to appoint to provisions of any contract between regard to issues to be discussed. All new member(s) of the Board, the him and the Company be subject to resolutions are recorded and actual decision as to who shall be the same provisions as to resignation thereafter circulated to the Directors nominated is the responsibility of and removal as the other Directors for comments before minutes of the full Board after considering the of the Company and if he ceases to proceedings are finalised and recommendations by the Nomination hold the office of Director for any confirmed. and Remuneration Committee cause he shall ipso facto and (“NRC”) of Johor Corporation immediately cease to be a Managing (“JCorp”). The NRC will propose Director. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 53

8. Directorship in Other Companies Internal Audit and external 10. Board’s Effectiveness In ensuring continuous commitment auditors attend such meetings The Board forms an important from the Directors to discharge their by invitation. The function and structure/platform of the overall duties effectively, none of the activities carried out by AC sound internal control system. A Directors of the Company holds during the year under review streamlined format for the Board of more than 10 directorships in public are contained in the Audit Directors’ evaluation forms is listed companies and more than 15 Committee Report as presented distributed every year to fulfil the directorships in non-public listed on page 46 to 48 of this Annual substantive requirement of Chapter companies. Report. 15.27b and 15.26 of Bursa Securities. The evaluation covers areas on iii Nomination And Remuneration Strategy and Planning; Risk 9. Board Committees Committee Management; Tone at the Top; In line with Johor Corporation’s The Board has delegated certain Measuring and Monitoring (JCorp’s) Group-wide corporate specific responsibilities to two (2) Performance; Transformational practice, the functions and committees which operate within Transactions; Management responsibilities of JLand’s clearly defined term of references, Evaluation; Compensation and Nomination and Remuneration with the main objective to assist the Succession Planning; Transparency; Committees (“NRC”) are vested Board in discharging its duties and and Board Dynamics. with the Group Nomination responsibilities. and Remuneration Committees of JCorp. JLand is directly i. tender Board Committee DIRECTORS’ REMUNERATION represented at the JCorp The Tender Board Committee As indicated in Paragraph 9 above, the Group NRC by its Chairman is chaired by Dato Hj Hassan Nomination and Remuneration Committee and Managing Director who Bin Hj Mohd Yunos. Its of JCorp is also responsible for making are respectively the Chairman deliberation includes scope recommendations on the framework, and official member of the of work, tender estimate, policy and procedures in reviewing and JCorp Group NRC. period of completion and determining the specific remuneration recommendations by Tender The prime consideration of package of the Directors in JLand. Evaluation Committee. centralising NRC function at the Group’s centre is the The objectives of the remuneration policy ii Audit Committee strategic advantage that the are: The Audit Committee (“AC”) is Centre provides by allowing • to ensure that individual rewards and currently chaired by Kua Hwee wider access and greater reach incentives fairly relate to the Sim and comprises three (3) to a much larger pool of talent, performance of the individual, the members, of which two (“2”) skills and expertise as well as Company and the interests of members are independent to benchmark remunerations shareholders; and Directors. AC meets regularly on a Group-wide basis. at least four (“4”) times a year. • to attract and retain the most qualified The Managing Director, Chief and experienced senior executives. Finance Officer, Head of 54 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Statement on Corporate Governance

The Committee, where appropriate, seeks independent advice and also has access to pool information on the latest remuneration and compensation packages practised in the market.

Details of the remuneration paid/payable to each Director for the financial year are as below:-

Directors Basic Fees & Bonuses & Benefits- Salary Allowances Others in-kind Total (RM) (RM) (RM) (RM) (RM)

Tan Sri Dato’ Muhammad Ali Hashim — 62,000 — — 62,000 (Non Independent Non Executive Chairman)

Mohd Talhar bin Abdul Rahman — 30,800 — — 30,800 (Non Independent Non Executive Deputy Chairman)

A.F.M Shafiqul Hafiz 264,000 128,200 168,029 52,921 613,150 (Managing Director)

Kua Hwee Sim — 34,100 — — 34,100 (Independent Non Executive Director)

Dato Hj Hassan Bin Hj Mohd Yunos — 33,100 — — 33,100 (Independent Non Executive Director)

Dr Mohd Hafetz bin Ahmad — 31,600 — — 31,600 (Independent Non Executive Director)

Lukman bin Hj. Abu Bakar — 32,400 — — 32,400 (Non Independent Non Executive Director)

Abdul Malek bin Talib 31,600 26,576 58,176 (Non Independent Non Executive Director)

Yusof bin Rahmat — 31,200 — — 31,200 (Non Independent Non Executive Director) Laporan Tahunan 2008 Annual Report • Johor Land Berhad 55

SHAREHOLDERS and deliberations. Members of the (c) Relationship with the Auditors (a) Relationship with Shareholders Board and Senior Management are The Board on its own and through and Investors present and available to respond to the Audit Committee has a formal shareholders’ questions during the The Board acknowledges the need and transparent management for meeting. Item of special business for shareholders and investors to be maintaining appropriate relationship included in the notice of the meeting informed of all material business with the External Auditors. There is will be accompanied by a full matters affecting the Group. The a formal and transparent arrangement explanation of the effects of a timely release financial results on in the review of the External Auditors’ proposed resolution. quarterly basis provide the audit plan, report, internal shareholders with an overview of control issues and procedures. the Group’s performance and Representatives from the External ACCOUNTABILITY AND AUDIT operations. In addition, to ensure Auditors were also invited to attend that shareholders and investors are (a) financial Reporting every Audit Committee Meeting. well informed of major developments The Board acknowledges and accepts of the Group, information is full responsibility for preparing a (d) Audit Committee disseminated to shareholders and balanced and comprehensive The Audit Committee Report for the investors through various disclosures assessment of the Group’s operation financial year is provided in page 46 and announcements to Bursa and prospects each time it releases to 48 of this Annual Report. Securities as well as through the its quarterly reports and annual annual report and where appropriate, financial statements to shareholders. circulars and press releases. On this matter, the Board is assisted COMPLIANCE TO THE CODE However, any information that may by the Audit Committee, whose terms JLand Group was in compliance with the be regarded as undisclosed material and reference are defined in the principles of and best practices in information about the Group will be Audit Committee Report published in corporate governance throughout the safeguarded. this Annual Report. financial year ended 31 December 2008.

The Group also maintains a website (b) Internal Control Signed on behalf of the Board of Directors www.jland.com.my for shareholders The Statement on Internal Control is in accordance with its resolution dated and public to access corporate set out in page 56 to 59 of this 27 February 2009. information and events related to Annual Report provides an overview the Group. of the Group’s approach in maintaining a sound system of internal control to (b) Annual General Meeting safeguard shareholders’ investment The Annual General Meeting and the Group’s assets. (“AGM”) is the principal forum for dialogue with shareholders. The Company values feedback from its shareholders and encourages them to actively participate in discussion TAN SRI DATO’ MUHAMMAD ALI HASHIM A.F.M SHAFIQUL HAFIZ Chairman Managing Director 56 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Statement on Internal Control

The Board of Directors (“the Board”) of Johor Land Berhad (“the Company” or “JLand”) is pleased to provide the Statement on Internal Control pursuant to paragraph 15.27 (b) of the Listing Requirements.

The Board recognises and accepts its responsibility in ensuring and maintaining a sound system of internal control to safeguard shareholders’ investment and the company’s assets.

The Board acknowledges its ultimate During the year under review, the Group responsibilities in reviewing the adequacy continue to enhance the system of internal and the integrity of internal control control and risk management, in order systems and management information to better quantify its compliance with systems of JLand Group, including the Malaysian Code on Corporate systems for compliance with applicable Governance and Bursa Securities Listing laws, regulations, rules, directives and Requirements. guidelines as well as identifying principal risks and ensures the implementation of The Board believes that the Group’s appropriate systems to manage the risks. system of internal control, financial or The Group’s internal control system is otherwise, should provide reasonable designed to manage rather than eliminate assurance regarding the achievement of risk of failure to achieve business objectives of ensuring effectiveness and objectives and can only provide reasonable efficiency of operations, reliability and assurance and not absolute assurance transparency of financial information and against material misstatement or loss. compliance with laws and regulations.

In providing the Statement on Internal Control for the Group, pursuant to Para PRINCIPAL FEATURES OF THE JLAND 46 of the “Statement on Internal Control GROUP’S SYSTEM OF INTERNAL – Guidance for Directors of Public Listed CONTROL Companies” (“the Guidance”), the Board The principal features which formed part wishes to inform that it has excluded the of the JLand Group’s system of internal assessment of controls on associated control can be summarised as follows: company i.e. Revertex (M) Sdn Bhd (“Revertex”), where the assurance on 1. Risk Management internal control of the company is obtained The JLand Group’s financial profile through JLand’s representation on the is the result of a system of internal board of Revertex. control and risk management designed to mitigate risks which Laporan Tahunan 2008 Annual Report • Johor Land Berhad 57

arise in the course of business. The competition, natural catastrophe and and disposal of businesses and Board acknowledges that all areas regulatory requirements. The Chief other significant transactions to the of the JLand Group’s business Risk Officer reports on significant Executive Directors. The approval activities involve some degree of changes in the business and the of capital and revenue proposals risk and is committed to ensure that external environment which affects above certain limit is reserved for there is effective risk management significant risks. Where areas for decisions by the Board. Other to manage risks within defined improvement in the system are investment decisions are delegated parameters and standards. identified, the Board considers the for approval in accordance with recommendations made by the Audit authority limits. Comprehensive JLand has appointed a Chief Risk Committee and the internal appraisal and monitoring procedures Officer to oversee the function of auditors. are applied to all major investment the Risk Management Committee. A decisions. Risk Management Report shall be The Board will pursue its ongoing tabled at the Audit Committee process of identifying, assessing The authority of Directors is required Meeting twice yearly. and managing key business, for decisions on key treasury matters operational and financial risks faced including financing of corporate and The purpose of the establishment of by its business units concerned as investment funding requirements, the Risk Management Committee is well as regularly reviewing planned interest rate risk management, for identifying, evaluating and strategies to determine whether risks investments, insurance and managing the significant risks faced are mitigated and well-managed, designation of authorised by JLand Group. The process is and to ensure compliance with the signatories. done on an ongoing process which guidelines issued by the relevant is undertaken at each level of authorities. 4. financial Performance operations. Emphasis is placed on Interim financial results are reviewed reviewing and updating the process 2. Authorisation Procedures by the Audit Committee and for identifying and evaluating the JLand Group has a clear definition approved by the Board upon significant risks affecting the of authorisation procedures and a recommendation of the Audit business, and policies and clear line of accountability, with strict Committee before release to Bursa procedures by which these risks are authorisation, approval and control Securities. The full year financial managed. procedures within which senior results and analyses of the Group’s Management is responsible for management operates. Responsibility state of affairs are disclosed to identification and evaluation of levels are communicated throughout shareholders after review and audit significant risks applicable to their the Group which set out, among by the external auditors. areas of business, together with the others, authorisation levels, design and operation of suitable segregation of duties and other 5. Internal Compliance internal controls. These risks are control procedures. JLand Group monitors compliance assessed on a continual basis and with its internal financial controls may be associated with a variety 3. Authority Levels through management reviews and internal and external sources JLand Group has delegated authority reports which are internally reviewed including control breakdown, levels for major tenders, capital by key personnel. Updates of disruption in information systems, expenditure projects, acquisitions internal policies and procedures are 58 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Statement on Internal Control

undertaken to reflect changing risks 1999. The ISO certification is being 7. Governance Committees or resolve operational deficiencies. renewed on continuous basis. At the management level, various Internal audit visits are systematically For the financial year 2008, IQNet committees have been formed to arranged over specific periods to and SIRIM QAS International Sdn ensure that decisions are made monitor and scrutinise compliance Bhd have issued certification that collectively and after thorough with procedures and assess the JLand has implemented and discussion. JLand has established integrity of financial information maintains a Quality Management fifteen (15) Governance Committees provided. System which fulfills the requirements to facilitate the operations. of ISO 9001:2000 for Design 6. ISO Procedures Manual Management, Development of Internal control procedures are Residential and Commercial documented in comprehensive Properties. The certificate was ISO 9001:2000 standard operating issued on 10 September 2008 and procedures manuals. JLand has valid until 23 August 2011. obtained ISO certification since year

No. Committee Function

1 Group Top Management JLand conducts weekly meeting which comprises Managing Director and department heads. Committee (Teraju) The purpose of the meeting is to deliberate operational issues and decide on company matters.

2 Selling Price Committee To discuss and decide on the appropriate selling price of residential houses and commercial properties.

3 Quality Management Review To supervise the implementation of ISO Quality System and to ensure the company maintains the ISO certification.

4 Interview Committee To interview perspective candidate and recommending for their appointment.

5 Agreement Committee To evaluate all agreement entered by the company including sale and purchase agreement.

6 Tender Evaluation Committee To recommend to the Tender Board the award of contracts for projects to contractors in accordance with the Contract Administration Guidelines & Procedures of the Company.

7 Negotiation Committee To negotiate with the contractors in order to get reasonable contract price. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 59

No. Committee Function

8 Technical Interview Committee To analyse technical information on tenders received from contractors. The committee is a sub-committee of the Tender Board.

9 Variation Order Committee To evaluate and recommend for Variation Orders on additional construction cost or reduction of construction cost.

10 Extension of Time/Certificate of To evaluate and recommend for Extension of Time for the delay in progress work. Non-Completion (EOT)

11 Certificate of Practical To evaluate and approve the issuance of Certificate of Practical Completion. Completion (CPC)

12 Certificate of Making Good To evaluate and approve the issuance of Certificate of Making Good Defect and Final Defect/Final Payment (CMGD) Payment.

13 Occupational Safety & Health To provide measures on safety and health of the Company’s staff and to ensure the (OSHA) compliance with Occupational Safety & Health Act 1994.

14 Board of Survey To evaluate and approve the disposal of fixed assets and to determine insurance coverage for company assets and properties.

15 Tender Opening Committee To open and verify tender submission prior to evaluation by Tender Evaluation Committee.

THE BOARD’S CONCLUSION The Board is of the view that the system of internal controls being instituted throughout the financial year 2008 is sound and effective. Reviews of all the control procedures will be continuously carried out to ensure the ongoing effectiveness and adequacy of the systems of internal control, so as to safeguard shareholders’ investment and the JLand Group’s asset.

Signed on behalf of the Board of Directors in accordance with its resolution dated 27 February 2009.

TAN SRI DATO’ MUHAMMAD ALI HASHIM A.F.M SHAFIQUL HAFIZ Chairman Managing Director 60 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Statement on Directors’ Responsibility

Pursuant to Paragraph 15.27(a) of the Listing Requirements of Bursa Malaysia Securities Berhad.

The Directors consider that, in preparing The Directors are responsible for ensuring the financial statements of the Group and that the Company and its subsidiaries of the Company for the financial year keep accounting records which disclose ended 31 December 2008, the Group with reasonable accuracy at any time the and the Company have used appropriate financial position of the Group and of the accounting policies, consistently applied Company and which enable them to and supported by reasonable and prudent ensure that the financial statements judgements and estimates. The Directors comply with the provisions of the also consider that all applicable approved Companies Act, 1965. The Directors are accounting standards in Malaysia have also responsible for taking such steps as been followed and confirm that the are reasonably open to them to safeguard financial statements have been prepared the assets of the Group and to prevent on a going concern basis. and detect fraud and other irregularities.

Signed on behalf of the Board of Directors in accordance with its resolution dated 27 February 2009.

TAN SRI DATO’ MUHAMMAD ALI HASHIM A.F.M SHAFIQUL HAFIZ Chairman Managing Director Laporan Tahunan 2008 Annual Report • Johor Land Berhad 61

Additional Disclosure Information

UTILISATION OF PROCEEDS SANCTIONS AND/OR PENALTIES The company did not implement any fund There were no public sanctions and/or raising exercise during the financial year. penalties imposed on the Company and its subsidiaries, Directors or management by any regulatory bodies during the SHARE BUY-BACK financial year. During the financial year, the Company did not implement any repurchase in the open market. As at 31 December 2008, NON-AUDIT FEES the Company repurchased 951,800 units The amount of non-audit fees payable to of its issued shares from the open market. the External Auditors by the Group for The average price paid for the shares the financial year ended 31 December repurchased was RM0.892 per shares. 2008 is as follows:

The total shares repurchased are being Auditors Services RM held as treasury shares and carried out as cost in accordance with the requirement KPMG Professional fee 5,000 of Section 67A of Companies Act 1965. for services None of the treasure shares has been rendered in resold, cancelled or distributed as share relation with the dividends as at the date of this report. review of Statement on Internal Control O P T I O N , W A R R A N T S O R CONVERTIBLE SECURITIES No options, warrants or Convertible VARIATION IN RESULTS Securities were exercised during the There was no material variation between financial year. the audited results for the financial year ended 31 December 2008 and the unaudited results previously released for AMERICAN DEPOSITORY RECEIPT the financial quarter ended 31 December (“ADR”) OR GLOBAL DEPOSITORY 2008. RECEIPT (“GDR”) The Company did not sponsor any ADR or GDR programme during the financial PROFIT GUARANTEE year. The Company did not make any arrangement during the financial year which requires profit guarantee. 62 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Additional Disclosure Information

Material Contract On 31 December 2008, the Company entered into a Sale and Purchase Agreement for the disposal of 2.0 acres of land held under PTD 84134, Bandar Dato’ Onn, Mukim Tebrau, District of Johor Bahru for a total cash consideration of RM4,356,000.00 to Damansara Assets Sdn Bhd, a wholly-owned subsidiary of JCorp.

Save as disclosed above, there were no other material contracts entered into by the Company and its subsidiaries involving Directors and substantial shareholders’ interests subsisting at 31 December 2008 or entered into since the end of the previous financial year ended 31 December 2007 except as disclosed under Note 15 and 29 of the financial statements on pages 108 and 121 respectively.

At an Extraordinary General Meeting held on 21 May 2008 the Company obtained a Shareholders’ mandate to allow the Group to enter into Recurrent Related Party Transaction of revenue or trading nature. Details of the actual unaudited amount of Recurrent Transactions from 1 January 2008 to 31 December 2008 are as follows:-

Actual Value of Transaction from 1 January to Relationship of 31 December Company Transacting Party Nature of Transaction transacting party 2008 (RM’000)

JLand and/or Kulim (Malaysia) Sale of fresh fruit bunches A subsidiary owned by JCorp, a subsidiaries Berhad (KMB) through KMB: Major Shareholder of JLand, by – sales value virtue of Section 6A of the Act^ 3,894 – commission payable to KMB *463

4,357

JLand and/or EPA Management Sale of fresh fruit bunches A subsidiary company of JCorp via subsidiaries Sdn Bhd – sales value Kulim (Malaysia) Berhad 2,319

JLand and/or Teraju Fokus Security and related services An associate company of JCorp, a *531 subsidiaries Sdn Bhd provided to the JLand Group Major Shareholder of JLand, by virtue of Section 6A of the Act^

JLand and/or Damansara Assets Rental of office space to JLand Wholly-owned subsidiary of JCorp, *120 subsidiaries Sdn Bhd and other related expenses a Major Shareholder of JLand, by virtue of Section 6A of the Act^ Disposal of land or land-based 4,356 property by JLand

4,476 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 63

Actual Value of Transaction from 1 January to Relationship of 31 December Company Transacting Party Nature of Transaction transacting party 2008 (RM’000)

JLand and/or TMR Urusharta Maintenance of Kompleks A subsidiary company of JCorp via *386 subsidiaries Sdn Bhd Mutiara Johor Land Damansara Assets Sdn Bhd

JLand and/or Sibu Island Resort Service rendered as project A subsidiary company of JCorp via 160 subsidiaries Sdn Bhd manager of construction Kumpulan Penambang Sdn Bhd projects

JLand and/or JCorp Miscellaneous services JCorp is a Major Shareholder of *34 subsidiaries rendered by JCorp to the JLand by virtue of Section 6A of JLand Group the Act^ (for example secretarial services, staff training, legal advisory, internal audit services)

* Denotes amounts payable by JLand to transacting parties

^ Interested directors, Major shareholders and persons connected are as follows:- (i) Tan Sri Dato’ Muhammad Ali Hashim is the Chairman of JLand cum President and Chief Executive Officer of JCorp. He is also the Chairman of various other companies within the JCorp Group. (ii) Mohd Talhar bin Abdul Rahman is a Non Independent Non Executive Deputy Chairman of JLand and is a partner of a firm of professional valuers, Messrs C H Williams Talhar & Wong Sdn. Bhd. that provides professional services to JLand via the JCorp Group. (iii) A.F.M Shafiqul Hafiz is the Managing Director of JLand and also holds directorships in various other companies within the JCorp Group. (iv) Lukman Bin Hj. Abu Bakar is a Non Independent Non Executive Director of JLand. He also holds directorships in various other companies within the JCorp Group. (v) Abdul Malek Bin Talib is Non Independent Non Executive Director of JLand. He also holds directorships in various other companies within the JCorp Group. (vi) Yusof Bin Rahmat is a Non Independent Non Executive Director of JLand. He also holds directorships in various other companies within the JCorp Group. 64 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Financial Statements 65 Directors’ Report 70 Statement by Directors 70 Statutory Declaration 71 Independent Auditors’ Report 73 Balance Sheets 74 Income Statements 75 Statement of Changes in Equity 76 Cash Flow Statements 79 Notes to the Financial Statements Laporan Tahunan 2008 Annual Report • Johor Land Berhad 65

Directors’ Report For the year ended 31 December 2008

The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the year ended 31 December 2008.

Principal activities The principal activities of the Company consist of the housing development and investment holdings. The principal activities of its subsidiaries are disclosed in Note 5 to the financial statements. There has been no significant change in the nature of these activities during the financial year.

Results

Group Company RM’000 RM’000

Profit for the year 19,184 3,793

Reserves and provisions There were no material transfers to or from reserves and provisions during the financial year under review.

Dividends Since the end of the previous financial year, the Company paid: i) an interim dividend of 4 sen per ordinary share less tax at 27% totalling RM3,534,609 (2.92 sen net per ordinary share) in respect of the year ended 31 December 2007 on 25 January 2008; ii) a final dividend of 3 sen per ordinary share less tax at 26% totalling RM2,687,273 (2.22 sen net per ordinary share) in respect of the year ended 31 December 2007 on 7 July 2008; and iii) an interim dividend of 4 sen per ordinary share less tax at 25% totalling RM3,631,446 (2.96 sen net per ordinary share) in respect of the year ended 31 December 2008 on 30 January 2009.

The Directors do not recommend the payment of any final dividend in respect of the current financial year. 66 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Directors’ Report For the year ended 31 December 2008

Directors of the Company Directors who served since the date of the last report are: Tan Sri Dato’ Muhammad Ali Hashim Mohd Talhar bin Abdul Rahman A.F.M Shafiqul Hafiz Kua Hwee Sim Dato Hj. Hassan bin Hj. Mohd. Yunos Dr. Mohd Hafetz bin Ahmad Lukman bin Hj. Abu Bakar Abdul Malek bin Talib Yusof bin Rahmat

Directors’ interests The interests and deemed interests in the shares of the Company and of its related corporations (other than wholly-owned subsidiaries) of those who were Directors at year end (including the interests of the spouses or children of the Directors who themselves are not Directors of the Company) as recorded in the Register of Directors’ Shareholdings are as follows:

Number of ordinary shares of RM1.00 each At At 1 January 31 December Name of Directors Interest 2008 Bought Sold 2008

Company Tan Sri Dato’ Muhammad Ali Hashim Direct 100,360 — — 100,360 Deemed 4,300 — — 4,300 Mohd Talhar bin Abdul Rahman Direct 7,920 — — 7,920 A.F.M Shafiqul Hafiz Direct 67,800 — — 67,800 Kua Hwee Sim Direct 9,000 — — 9,000 Dr. Mohd Hafetz bin Ahmad Direct 2,000 — — 2,000 Deemed 4,770 — — 4,770 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 67

Directors’ interests (CONTINUED)

Number of ordinary shares of RM1.00 each At At 1 January 31 December Name of Directors Interest 2008 Bought Sold 2008 Related companies – KPJ Healthcare Berhad Tan Sri Dato’ Muhammad Ali Hashim Direct 81,100 36,100 — 117,200 Deemed 12,000 — — 12,000 A.F.M Shafiqul Hafiz Direct — 81,600 (51,600) 30,000 Dr. Mohd Hafetz bin Ahmad Direct 8,000 — — 8,000

– Sindora Berhad Tan Sri Dato’ Muhammad Ali Hashim Direct 73,977 30,000 — 103,977 Dr. Mohd Hafetz bin Ahmad Direct 1,067 — (1,067) — Abdul Malek bin Talib Direct 106 — — 106

– QSR Brands Berhad A.F.M Shafiqul Hafiz Direct 1,000 — — 1,000

– Sergam Berhad A.F.M Shafiqul Hafiz Direct 1 — — 1

Number of ordinary shares of RM0.50 each At At 1 January 31 December Name of Directors Interest 2008 Bought Sold 2008

– Kulim (Malaysia) Berhad Tan Sri Dato’ Muhammad Ali Hashim Direct 284,000 96,200 — 380,200 Deemed 22,400 — — 22,400 A.F.M Shafiqul Hafiz Direct 1,000 65,000 (36,000) 30,000 Dr. Mohd Hafetz bin Ahmad Direct — 8,000 — 8,000 Deemed 12,020 — (1,000) 11,020 Lukman bin Hj. Abu Bakar Direct — 3,000 — 3,000 Abdul Malek bin Talib Direct 100 — — 100

None of the other Directors holding office at 31 December 2008 had any interest in the ordinary shares of the Company and of its related corporations during the year. 68 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Directors’ Report For the year ended 31 December 2008

Directors’ benefits Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown in the financial statements) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest.

There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.

Issue of shares There were no changes in the authorised, issued and paid-up capital of the Company during the financial year.

Options granted over unissued shares No options were granted to any person to take up unissued shares of the Company during the financial year.

Other statutory information Before the balance sheets and income statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that: i) all known bad debts have been written off and adequate provision has been made for doubtful debts, and ii) all current assets have been stated at the lower of cost and net realisable value.

At the date of this report, the Directors are not aware of any circumstances: i) that would render the amount written off for bad debts, or the amount of the provision for doubtful debts in the Group and in the Company inadequate to any substantial extent, or ii) that would render the value attributed to the current assets in the financial statements of the Group and of the Company misleading, or iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate, or iv) not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial statements of the Group and of the Company misleading. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 69

Other statutory information (CONtinued) At the date of this report, there does not exist: i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which secures the liabilities of any other person, or ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year.

No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due.

In the opinion of the Directors, the results of the operations of the Group and of the Company for the year ended 31 December 2008 have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of that financial year and the date of this report.

Auditors The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment.

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:

Tan Sri Dato’ Muhammad Ali Hashim A.F.M Shafiqul Hafiz

Johor Bahru, Date: 13 March 2009 70 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Statement by Directors pursuant to Section 169(15) of the Companies Act, 1965

In the opinion of the Directors, the financial statements set out on pages 73 to 121 are drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia and so as to give a true and fair view of the financial position of the Group and of the Company at 31 December 2008 and of their financial performance and cash flows for the financial year then ended.

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:

Tan Sri Dato’ Muhammad Ali Hashim A.F.M Shafiqul Hafiz

Johor Bahru, Date: 13 March 2009

Statutory Declaration pursuant to Section 169(16) of the Companies Act, 1965

I, Mariana binti Sidi, the officer primarily responsible for the financial management of JOHOR LAND BERHAD, do solemnly and sincerely declare that the financial statements set out on pages 73 to 121 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the abovenamed in Johor Bahru in the State of Johor on 13 March 2009.

Mariana binti Sidi

Before me: K. Amudalingam PLP, PIS, PPN Commissioner for Oaths J-133 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 71

Independent Auditors’ Report to the members of Johor Land Berhad (Company No. 12379-K) (Incorporated in Malaysia)

Report on the Financial Statements We have audited the financial statements of Johor Land Berhad, which comprise the balance sheets as at 31 December 2008 of the Group and of the Company, and the income statements, statements of changes in equity and cash flow statements of the Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 73 to 121.

Directors’ Responsibility for the Financial Statements The Directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of 31 December 2008 and of their financial performance and cash flows for the year then ended. 72 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Independent Auditors’ Report to the members of Johor Land Berhad (Company No. 12379-K) (Incorporated in Malaysia)

Report on Other Legal and Regulatory Requirements In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following: a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries have been properly kept in accordance with the provisions of the Act. b) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’s financial statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received satisfactory information and explanations required by us for those purposes. c) Our audit reports on the financial statements of the subsidiaries did not contain any qualification or any adverse comment made under Section 174(3) of the Act.

Other Matters This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

KPMG Ang Ah Leck Firm Number: AF 0758 Approval Number: 1991/09/09 (J) Chartered Accountants Chartered Accountant

Johor Bahru Date: 13 March 2009 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 73

Balance Sheets As at 31 December 2008

Group Company 2008 2007 2008 2007 Note RM’000 RM’000 RM’000 RM’000 Assets Property, plant and equipment 3 2,045 2,766 1,925 2,018 Investment properties 4 28,800 29,034 28,800 28,384 Investments in subsidiaries 5 — — 19,548 19,548 Investments in associates 6 54,360 46,527 37,189 37,189 Land held for future development 7 480,268 493,690 470,223 483,597 Deferred tax assets 8 15,694 16,123 15,149 15,533 Total non-current assets 581,167 588,140 572,834 586,269 Property development projects 9 207,213 135,377 161,738 102,673 Inventories 10 26,376 35,841 16,770 18,301 Trade and other receivables 11 74,033 45,193 70,831 49,990 Short term investments 12 102 117 102 117 Tax recoverable 36 2,137 — 2,137 Cash and bank balances 13 5,709 3,082 3,720 2,394 Total current assets 313,469 221,747 253,161 175,612 Total assets 894,636 809,887 825,995 761,881

Equity Share capital 122,000 122,000 122,000 122,000 Reserves 369,115 369,115 369,115 369,115 Retained earnings 162,216 149,351 127,063 129,589 Total equity attributable to equity holders of the Company/ Total equity 14 653,331 640,466 618,178 620,704 Liabilities Loans and borrowings/ Total non-current liabilities 15 24,993 60,645 14,264 35,717 Trade and other payables 16 43,125 21,465 44,731 22,574 Loans and borrowings 15 165,715 83,351 142,287 79,351 Dividend payable 3,632 3,535 3,632 3,535 Taxation 3,840 425 2,903 — Total current liabilities 216,312 108,776 193,553 105,460 Total liabilities 241,305 169,421 207,817 141,177 Total equity and liabilities 894,636 809,887 825,995 761,881

The accompanying notes form an integral part of the financial statements. 74 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Income Statements For the year ended 31 December 2008

Group Company 2008 2007 2008 2007 Note RM’000 RM’000 RM’000 RM’000

Revenue 17 138,694 63,356 103,705 89,239 Cost of goods sold (94,970) (42,367) (70,333) (37,736)

Gross profit 43,724 20,989 33,372 51,503 Other income 2,317 4,001 1,121 2,656 Distribution expenses (5,581) (4,897) (4,358) (4,099) Administrative expenses (12,177) (11,776) (11,071) (10,717) Other expenses (188) (1,418) (186) (2,220)

Results from operating activities 28,095 6,899 18,878 37,123 Interest income 68 142 34 62 Finance costs 18 (12,210) (7,975) (11,054) (7,490)

Operating profit/(loss) 19 15,953 (934) 7,858 29,695 Share of profit after tax and minority interest of equity accounted associates 9,336 9,202 — —

Profit before tax 25,289 8,268 7,858 29,695 Tax expense 20 (6,105) (1,578) (4,065) (10,171)

Profit for the year 19,184 6,690 3,793 19,524

Attributable to: Equity holders of the Company Profit for the year 19,184 6,690 3,793 19,524

Basic earnings per ordinary share (sen) 21 8.30 2.90

Diluted earnings per ordinary share (sen) 21 4.60 1.98

The accompanying notes form an integral part of the financial statements. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 75

Statement of Changes in Equity For the year ended 31 December 2008

Attributable to equity holders of the Company Non-distributable Distributable Convertible unsecured Share loan stocks Share premium -equity Treasury Retained Total capital reserve portion shares earnings equity Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group At 1 January 2007 122,000 78,582 291,388 (855) 148,847 639,962 Profit for the year — — — — 6,690 6,690 Dividends to shareholders 22 — — — — (6,186) (6,186)

At 31 December 2007 122,000 78,582 291,388 (855) 149,351 640,466 Profit for the year — — — — 19,184 19,184 Dividends to shareholders 22 — — — — (6,319) (6,319)

At 31 December 2008 122,000 78,582 291,388 (855) 162,216 653,331

Company At 1 January 2007 122,000 78,582 291,388 (855) 116,251 607,366 Profit for the year — — — — 19,524 19,524 Dividends to shareholders 22 — — — — (6,186) (6,186)

At 31 December 2007 122,000 78,582 291,388 (855) 129,589 620,704 Profit for the year — — — — 3,793 3,793 Dividends to shareholders 22 — — — — (6,319) (6,319)

At 31 December 2008 122,000 78,582 291,388 (855) 127,063 618,178

The accompanying notes form an integral part of the financial statements. 76 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Cash Flow Statements For the year ended 31 December 2008

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Cash flows from operating activities Profit before tax 25,289 8,268 7,858 29,695 Adjustments for:- Impairment losses: – Investment in a subsidiary — — — 30 – Goodwill — 30 — — – Quoted shares 24 — 24 — Change in fair value on investment properties (416) (2,251) (416) (2,251) Depreciation 540 496 443 392 Finance costs 12,210 7,975 11,054 7,490 (Gain)/Loss on disposal of: – Property, plant and equipment (324) (18) (105) (18) – Quoted shares 39 (108) 39 (108) – Investment properties (250) (465) — — Write off: – Property, plant and equipment 1 690 1 2 – Investment in associate — 132 — — Dividend income – Quoted shares (4) (8) (4) (8) – Subsidiaries — — — (32,370) – Associate — — (2,032) (4,119) Interest income (68) (142) (34) (62) Share in results of associate (9,336) (9,202) — — Operating profit/(loss) before changes in working capital 27,705 5,397 16,828 (1,327) Changes in working capital: Inventories 9,465 12,391 1,531 26,640 Trade and other receivables (28,840) (6,856) (20,841) (3,782) Trade and other payables 8,352 6,085 8,849 (1,090) Property development projects (57,581) (16,029) (44,857) (23,812) Cash (used in)/generated from operations (40,899) 988 (38,490) (3,371) Interest received 68 142 34 62 Dividend received 1,503 3,007 1,503 26,637 Interest paid (10,117) (4,920) (8,961) (4,435) Tax (paid)/refunded (160) (3,934) 1,887 (2,286) Net cash (used in)/from operating activities (49,605) (4,717) (44,027) 16,607

The accompanying notes form an integral part of the financial statements. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 77

Group Company Note 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Cash flows from investing activities Acquisition of:- – Property, plant and equipment 23 (85) (665) (84) (638) – Quoted investments (1,041) (563) (1,041) (563) – Investment properties — (25,637) — (25,637) – Additional investment in a subsidiary — (30) — (30) Land held for future development (834) (10,968) (834) (10,968) Proceeds from disposal of:- – Property, plant and equipment 864 18 113 18 – Investment properties 900 3,000 — — – Quoted investments 993 730 993 730 Dividends received 4 8 4 8 Net cash from/(used in) investing activities 801 (34,107) (849) (37,080) Cash flows from financing activities Payment of finance lease liabilities (32) (60) (32) (60) Net proceeds from borrowings 8 5 8 5 Drawdown of: – Bridging loan 65,781 16,248 46,842 — – Term loan 25,000 — 25,000 — Dividends paid to shareholders of the Company (6,213) (2,651) (6,213) (2,651) Interest paid on convertible unsecured loan stocks (6,500) (19,800) (6,500) (19,800) Repayment of: – Term loan (4,971) — (4,971) — – Bridging loan (13,710) — — — Net cash from/(used in) financing activities 59,363 (6,258) 54,134 (22,506) Net increase/(decrease) in cash and cash equivalents 10,559 (45,082) 9,258 (42,979) Cash and cash equivalents at 1 January (71,203) (26,121) (71,891) (28,912) Cash and cash equivalents at 31 December (60,644) (71,203) (62,633) (71,891)

The accompanying notes form an integral part of the financial statements. 78 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Cash Flow Statements For the year ended 31 December 2008

Cash and cash equivalents included in the cash flow statements comprise the following balance sheet amounts:

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Cash and bank balances 5,709 3,082 3,720 2,394 Bank overdrafts (66,353) (74,285) (66,353) (74,285)

(60,644) (71,203) (62,633) (71,891)

The accompanying notes form an integral part of the financial statements. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 79

Notes to the Financial Statements

Johor Land Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Board of Bursa Malaysia Securities Berhad. The addresses of the principal place of business and registered office of the Company are as follows:

Principal place of business Kompleks Mutiara Johor Land Jalan Bukit Mutiara Bandar Dato’ Onn 81100 Johor Bahru Johor

Registered office Level 2, Persada Johor International Convention Centre Jalan Abdullah Ibrahim 80000 Johor Bahru Johor

The consolidated financial statements of the Company as at and for the year ended 31 December 2008 comprise the Company and its subsidiaries and the Group’s interest in associates.

The principal activities of the Company consist of the housing development and investment holdings. The principal activities of its subsidiaries are disclosed in Note 5.

The holding and ultimate holding corporation during the financial year is Johor Corporation, a body corporate established under the Johor Corporation Enactment (No. 4 of 1968) (as amended by Enactment No. 5 of 1995).

The financial statements were approved by the Board of Directors on 13 March 2009. 80 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

1. Basis of preparation (a) Statement of compliance The financial statements of the Group and of the Company have been prepared in accordance with Financial Reporting Standards (FRS), the Companies Act, 1965 and accounting principles generally accepted in Malaysia.

The Group and the Company have not applied the following accounting standards (including its consequential amendments) and interpretations that have been issued by the Malaysian Accounting Standards Board (MASB) but are not yet effective:

fRSs/Interpretations Effective date FRS 4, Insurance Contracts 1 January 2010 FRS 7, Financial Instruments: Disclosures 1 January 2010 FRS 8, Operating Segment 1 July 2009 FRS 139, Financial Instruments: Recognition and Measurement 1 January 2010 IC Interpretation 9, Reassessment of Embedded Derivatives 1 January 2010 IC Interpretation 10, Interim Financial Reporting and Impairment 1 January 2010

The Group and the Company plan to apply the abovementioned FRSs/Interpretations from the annual period beginning 1 January 2010.

The impact of applying FRS 4, FRS 7 and FRS 139 on the financial statements upon first adoption as required by paragraph 30(b) of FRS 108, Accounting Policies, Changes in Accounting Estimates and Errors is not disclosed by virtue of the exemptions given in the respective FRSs. The initial application of the above standards (and its consequential amendments) and interpretations is not expected to have any material impact on the financial statements of the Group and the Company.

(b) Basis of measurement The financial statements have been prepared on the historical cost except for investment properties in Note 2(g).

(c) functional and presentation currency These financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional currency. All financial information are presented in RM, has been rounded to the nearest thousand, unless otherwise stated. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 81

1. Basis of preparation (continued) (d) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amounts recognised in the financial statements other than those disclosed in the following notes: Note 2(g) – valuation of investment properties Note 2r(iii) – revenue recognition on property development

2. Significant accounting policies The accounting policies set out below have been applied consistently to the periods presented in these financial statements, and have been applied consistently by Group entities, unless otherwise stated.

(a) Basis of consolidation (i) Subsidiaries Subsidiaries are entities, including unincorporated entities, controlled by the Group. Control exists when the Group has the ability to exercise its power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. Subsidiaries are consolidated using the purchase method of accounting. Under the purchase method of accounting, the financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Investments in subsidiaries are stated in the Company’s balance sheet at cost less any impairment losses. 82 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

2. Significant accounting policies (continued) (a) Basis of consolidation (continued) (ii) Associates Associates are entities, including unincorporated entities, in which the Group has significant influence, but not control, over the financial and operating policies. Associates are accounted for in the consolidated financial statements using the equity method. The consolidated financial statements include the Group’s share of the profit or loss of the equity accounted associates, after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. When the Group’s share of losses exceeds its interest in an equity accounted associate, the carrying amount of that interest (including any long-term investments) is reduced to nil and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. Investments in associates are stated in the Company’s balance sheet at cost less any impairment losses.

(iii) Changes in Group composition Where a subsidiary issues new equity shares to minority interest for cash consideration and the issue price has been established at fair value, the reduction in the Group’s interests in the subsidiary is accounted for as a disposal of equity interest with the corresponding gain or loss recognised in the income statements. When the Group purchases a subsidiary’s equity shares from minority interest for cash consideration and the purchase price has been established at fair value, the accretion of the Group’s interests in the subsidiary is accounted for as a purchase of equity interest for which the acquisition method of accounting is applied. The Group treats all other changes in group composition as equity transactions between the Group and its minority shareholders. Any difference between the Group’s share of net assets before and after the change, and any consideration received or paid, is adjusted to or against Group reserves.

(iv) Minority interest Minority interest at the balance sheet date, being the portion of the net identifiable assets of subsidiaries attributable to equity interests that are not owned by the Company, whether directly or indirectly through subsidiaries, are presented in the consolidated balance sheet and statement of changes in equity within equity, separately from equity attributable to the equity holders of the Company. Minority interest in the results of the Group are presented on the face of the consolidated income statement as an allocation of the total profit or loss for the year between minority interest and the equity holders of the Company. Where losses applicable to the minority exceed the minority’s interest in the equity of a subsidiary, the excess, and any further losses applicable to the minority, are charged against the Group’s interest except to the extent that the minority has a binding obligation to, and is able to, make additional investment to cover the losses. If the subsidiary subsequently reports profits, the Group’s interest is allocated with all such profits until the minority’s share of losses previously absorbed by the Group has been recovered. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 83

2. Significant accounting policies (continued) (a) Basis of consolidation (continued) (v) Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

(b) foreign currency Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies are translated at exchange rates at the dates of the transactions except for those that are measured at fair value, which are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in the income statements.

(c) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are stated at cost less any accumulated depreciation and any accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. The cost of self-constructed assets also includes the cost of materials and direct labour and, for qualifying assets, borrowing costs are capitalised in accordance with the Group’s accounting policy. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. The cost of property, plant and equipment recognised as a result of a business combination is based on fair value at acquisition date. The fair value of property is the estimated amount for which a property could be exchanged between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. The fair value of other items of plant and equipment is based on the quoted market prices for similar items. When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within “other income” or “other expenses” respectively in the income statements. 84 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

2. Significant accounting policies (continued) (c) Property, plant and equipment (continued) (ii) Reclassification to investment property Property that is being constructed for future use as investment property is accounted for as property, plant and equipment until construction or development is complete, at which time it is remeasured to fair value and reclassified as investment property. Any gain or loss arising on re-measurement is recognised in the income statements.

(iii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The carrying amount of those parts that are replaced is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in the income statement as incurred.

(iv) Depreciation Depreciation is recognised in the income statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Freehold land is not depreciated. The estimated useful lives for the current and comparative periods are as follows: Buildings 10 – 50 years Plant and machinery 5 – 8.3 years Furniture, fittings and equipment 4 – 5 years and replacement basis Motor vehicles 5 years Depreciation methods, useful lives and residual values are reassessed at the balance sheet date.

(d) Leased assets (i) Finance lease Leases in terms of which the Group or the Company assume substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 85

2. Significant accounting policies (continued) (d) Leased assets (continued) (ii) Operating lease Leases, where the Group does not assume substantially all the risks and rewards of the ownership are classifies as operating leases and, except for property interest held under operating lease, the leased assets are not recognised on the Group’s balance sheet. Property interest held under an operating lease, which is held to earn rental income or for capital appreciation or both, is classified as investment property. Leasehold land that normally has an indefinite economic life and title is not expected to pass to the lessee by the end of the lease term is treated as an operating lease. The payment made on entering into or acquiring a leasehold land is accounted for as prepaid lease payments, except for leasehold land classified as investment property, land held for future development and property development projects. Payments made under operating leases are recognised in the income statements on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

(e) Intangible assets Goodwill Goodwill arises on business combinations and is measured at cost less any accumulated impairment losses.

Goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree.

Any excess of the Group’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over the cost of acquisition is recognised immediately in income statement.

(f) Investments in debt and equity securities Investments in debt and equity securities are recognised initially at fair value plus attributable transaction costs.

Subsequent to initial recognition, all current investments are carried at the lower of cost and market value, determined on an individual investment basis by category of investments.

On disposal of an investment, the difference between net disposal proceeds and its carrying amount is recognised in the income statements. 86 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

2. Significant accounting policies (continued) (g) Investment properties (i) Investment property carried at fair value Investment properties are properties which are owned or held under a leasehold interest to earn rental income or for capital appreciation or for both. These include land held for a currently undetermined future use. Properties that are occupied by the companies in the Group are accounted for as owner-occupied rather than as investment properties. Investment properties are measured initially at cost and subsequently at fair value with any change therein recognised in the income statements. When an item of property, plant and equipment is transferred to investment property following a change in its use, any difference arising at the date of transfer between the carrying amount of the item immediately prior to transfer and its fair value is recognised directly in equity as a revaluation of property, plant and equipment. However, if a fair value gain reverses a previous impairment loss, the gain is recognised in the income statements. Upon disposal of an investment property, any surplus previously recorded in equity is transferred to retained earnings; the transfer is not made through the income statements.

(ii) Reclassification to/from investment property When an item of inventory or property development is transferred to investment property following a change in its use, any difference arising at the date of transfer between the carrying amount of the item immediately prior to the transfer and its fair value is recognised in the income statements. When the use of a property changes such that it is reclassified as property, plant and equipment/inventories/property development, its fair value at the date of reclassification becomes its cost for subsequent accounting.

(iii) Determination of fair value An external, independent valuation firm, having appropriate recognised professional qualifications and recent experience in the location and category of property being valued, values the Group’s investment property portfolio annually. The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. In the absence of current prices in an active market, the valuations are prepared by considering the aggregate of the estimated cash flows expected to be received from renting out the property. A yield that reflects the specific risks inherent in the net cash flows then is applied to the net annual cash flows to arrive at the property valuation. Valuations reflect, where appropriate: the type of tenants actually in occupation or responsible for meeting lease commitments or likely to be in occupation after letting vacant accommodation, and the market’s general perception of their creditworthiness; the allocation of maintenance and insurance responsibilities between the Group and the lessee; and the remaining economic life of the property. When rent reviews or lease renewals are pending with anticipated reversionary increases, it is assumed that all notices and where appropriate counter-notices have been served validly and within the appropriate time. Significant assumptions in arriving at the fair value of investment properties are disclosed in Note 4. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 87

2. Significant accounting policies (continued) (h) Inventories Inventories of completed houses are stated at the lower of cost and net realisable value. Cost is mainly determined on specific identification basis and includes the cost of freehold/leasehold land and construction, and the appropriate development overheads.

Inventories, other than completed houses, are stated at the lower of cost (determined on the ‘first-in, first-out’ basis and the weighted-average method) and net realisable value. The cost of raw materials, consumables and other inventories comprise the original cost of purchase plus the cost of bringing the inventories to their present location. Net realisable value represents the estimated selling price in the ordinary course of business less selling and distribution costs and all other estimated costs of completion and the estimated costs necessary to make the sale.

(i) Property development projects Property development projects consist of land held for future development and current development expenditure which comprise construction and other related development costs including borrowings costs, is stated at cost less any accumulated impairment losses.

The Group and the Company consider as current asset that proportion of property development projects on which sales have been launched and/or the project is expected to be completed within the normal operating cycle of two to three years. Cost of property development projects classified as current assets are stated at the lower of cost and net realisable value.

When the outcome of a property development project cannot be estimated reliably, property development revenue is recognised to the extent of property development costs incurred that is probable of recovery.

Any anticipated loss on a property development project (including costs to be incurred over the defects liability period), is recognised as an expense immediately.

Accrued billings represent the excess of property development revenue recognised in the income statements over billings to purchasers while progress billings represent the excess of billings to purchasers over property development revenue recognised in the income statements.

(j) Receivables Receivables are initially recognised at their cost when the contractual right to receive cash or another financial asset from another entity is established.

Subsequent to initial recognition, receivables are stated at cost less allowance for doubtful debts.

Receivables are not held for the purpose of trading. 88 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

2. Significant accounting policies (continued) (k) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid investments which have an insignificant risk of changes in value. For the purpose of the cash flow statement, cash and cash equivalents are presented net of bank overdrafts and pledged deposits, if any.

(l) Impairment of assets The carrying amounts of assets except for financial assets, inventories, deferred tax assets, and investment property that is measured at fair value, non-current assets (or disposal groups) classified as held for sale are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill the recoverable amount is estimated usually at each reporting date.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-generating units that are expected to benefit from the synergies of the combination.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statements. Impairment losses recognised in respect of cash- generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (groups of units) on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to the income statements in the year in which the reversals are recognised. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 89

2. Significant accounting policies (continued) (m) Equity instruments All equity instruments are stated at cost on initial recognition and are not re-measured subsequently.

(i) Issue expenses Incremental costs directly attributable to issue of equity instruments are recognised as a deduction from equity.

(ii) Repurchase of share capital When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributable costs, is recognised as a deduction from equity and is not re-valued for subsequent changes in the fair value or market price of shares. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. Where treasury shares are distributed as share dividends, the cost of the treasury shares is applied in the reduction of the share premium account or distributable reserves, or both. Where treasury shares are reissued by re-sale in the open market, the difference between the sales consideration net of directly attributable costs and the carrying amount of the treasury shares is recognised in equity.

(n) Compound financial instruments A compound financial instrument is a non-derivative financial instrument that contains both a liability and an equity component.

Compound financial instruments issued by the Group comprise convertible notes that can be converted to share capital at the option of the holder, and the number of shares to be issued does not vary with changes in their fair value.

The liability component of a compound financial instrument is recognised initially at the fair value of a similar liability that does not have an equity conversion option. The equity component is recognised initially at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instruments is measured at amortised cost using the effective interest method. The equity component of a compound financial instruments is not remeasured subsequent to initial recognition.

(o) Loans and borrowings Loans and borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the income statements over the period of the loans and borrowings using the effective interest method. 90 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

2. Significant accounting policies (continued) (p) Employee benefits Short-term employee benefits Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are measured on an undiscounted basis and are expensed as the related service is provided.

A provision is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

The Group’s contribution to statutory pension funds are charged to the income statements in the year to which they relate. Once the contributions have been paid, the Group has no further payment obligations.

(q) Payables Payables are measured initially and subsequently at cost. Payables are recognised when there is a contractual obligation to deliver cash or another financial asset to another entity.

(r) Revenue recognition (i) Goods sold Revenue from the sale of goods is measured at fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods.

(ii) Rental income Rental income from investment property is recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease.

(iii) Revenue from property development Revenue from property development activities is recognised based on the stage of completion measured by reference to surveys of work performed. Where the financial outcome of a property development activity cannot be reliably estimated, property development revenue is recognised only to the extent of property development costs incurred that is probable will be recoverable, and property development costs on the development units sold are recognised as an expense in the period in which they are incurred. Any expected loss on a development project, including costs to be incurred over the defects liability period, is recognised immediately in the income statement.

(iv) Dividend income Dividend income is recognised when the right to receive payment is established. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 91

2. Significant accounting policies (continued) (s) Interest income and borrowing costs Interest income is recognised as it accrues, using the effective interest method.

All borrowing costs are recognised in the income statements using the effective interest method, in the period in which they are incurred except to the extent that they are capitalised as being directly attributable to the property development projects which necessarily takes a substantial period of time to be prepared for its intended use or sale.

The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or completed.

(t) tax expense Tax expense comprises current and deferred tax. Tax expense is recognised in the income statements except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit (tax loss). Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax liability is recognised for all taxable temporary differences.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

(u) Earnings per share The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise convertible notes.

(v) Segment reporting A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. 92 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

3. Property, plant and equipment

Office equipment, Land and Plant and furniture Motor buildings machinery and fittings vehicles Total RM’000 RM’000 RM’000 RM’000 RM’000 Group At cost At 1 January 2007 2,562 985 1,280 1,935 6,762 Additions — — 665 — 665 Disposals/Written off — (985) (251) — (1,236) Transfer to investment properties (496) — — — (496)

At 31 December 2007/1 January 2008 2,066 — 1,694 1,935 5,695 Additions — — 56 304 360 Disposals/Written off (659) — (14) (450) (1,123)

At 31 December 2008 1,407 — 1,736 1,789 4,932

Accumulated depreciation At 1 January 2007 291 303 970 1,415 2,979 Depreciation charge 69 — 194 233 496 Disposals/Written off — (303) (243) — (546) At 31 December 2007/1 January 2008 360 — 921 1,648 2,929 Depreciation charge 62 — 244 234 540 Disposals/Written off (127) — (13) (442) (582) At 31 December 2008 295 — 1,152 1,440 2,887

Carrying amounts At 31 December 2008 1,112 — 584 349 2,045

At 31 December 2007 1,706 — 773 287 2,766 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 93

3. Property, plant and equipment (continued)

Office equipment, Land and furniture Motor buildings and fittings vehicles Total RM’000 RM’000 RM’000 RM’000 Company At cost At 1 January 2007 1,767 1,074 1,872 4,713 Transfer to investment property (496) — — (496) Additions — 638 — 638 Disposal/Written off — (209) — (209) At 31 December 2007/1 January 2008 1,271 1,503 1,872 4,646 Additions — 55 304 359 Disposals/Written off — (14) (450) (464) At 31 December 2008 1,271 1,544 1,726 4,541

Accumulated depreciation At 1 January 2007 161 895 1,388 2,444 Depreciation charge 15 153 224 392 Disposals/Written off — (208) — (208)

At 31 December 2007/1 January 2008 176 840 1,612 2,628 Depreciation charge 15 203 225 443 Disposals/Written off — (13) (442) (455)

At 31 December 2008 191 1,030 1,395 2,616

Carrying amounts At 31 December 2008 1,080 514 331 1,925

At 31 December 2007 1,095 663 260 2,018 94 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

3. Property, plant and equipment (continued)

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Carrying amounts of land and buildings At cost Freehold land 499 894 499 499 Buildings 613 812 581 596

1,112 1,706 1,080 1,095

Assets under finance lease Included in property, plant and equipment of the Group and of the Company are motor vehicles acquired under finance lease agreement with carrying amount of RM262,000 (2007: NIL). The leased motor vehicles secure lease obligations (see Note 15).

4. Investment properties

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 At fair value At 1 January 29,034 3,185 28,384 — Additions — 25,637 — 25,637 Transfer from property, plant and equipment — 496 — 496 Disposal (650) (2,535) — — Change in fair value 416 2,251 416 2,251 At 31 December 28,800 29,034 28,800 28,384 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 95

4. Investment properties (continued)

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Included in the above are: Leasehold land with unexpired lease period of less than 50 years — 94 — — Factory buildings — 556 — — Sports complex 9,120 8,820 9,120 8,820 Freehold land 19,680 19,564 19,680 19,564 28,800 29,034 28,800 28,384

The Company’s investment properties were revalued in December 2008 by independent professional qualified valuers using an open market value method. Certain freehold land with fair value of RM1,300,000 (2007: RM1,250,000) are currently vacant.

The following are recognised in the income statement in respect of investment properties:

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Rental income 590 527 590 527 Direct operating expenses – income generating investment properties 1,597 897 1,597 897 – non income generating investment properties 101 85 — —

Security Freehold land with carrying amount of RM18,380,000 (2007: NIL) is charged to bank as security for borrowings as disclosed in Note 15. 96 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

5. Investments in subsidiaries

Company 2008 2007 RM’000 RM’000

Unquoted investment – at cost 21,078 21,078 Less: Impairment losses (1,530) (1,530)

19,548 19,548

The subsidiaries, all incorporated in Malaysia are as follows:

Effective ownership interest 2008 2007 Name of Company Principal activities % %

Advance Development Sdn. Bhd. Property developer 100 100 Pembinaan Prefab Sdn. Bhd. Property developer 100 100 Johor Land Manufacturing Sdn. Bhd. Dormant 100 100

6. Investments in associates

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Unquoted shares, at cost 45,713 45,713 45,713 45,713 Dividend received out of pre-acquisition profits (8,524) (8,524) (8,524) (8,524) Share of post-acquisition results of associates 17,171 9,338 — —

54,360 46,527 37,189 37,189 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 97

6. Investments in associates (continued) Summary financial information on the associate:

Effective Country ownership Total Total Name of company incorporation interest Revenue Profit assets liabilities (%) (100%) (100%) (100%) (100%) RM’000 RM’000 RM’000 RM’000

2008 Revertex (Malaysia) Sdn. Bhd.# Malaysia 30.07 569,089 31,264 266,826 (133,044)

2007 Revertex (Malaysia) Sdn. Bhd.# Malaysia 30.07 531,003 29,748 277,888 (169,918)

The principal activities of the associate are manufacture and sale of concentrated natural rubber latex, compounds, synthetic resin emulsions, alkyd resins, polyester resins and plasticisers.

# Audited by another firm of accountants.

Contingent liabilities Company 2008 2007 RM’000 RM’000

Share of associates’ contingent liabilities incurred jointly with other investors – Bank guarantees for trade financing to suppliers (unsecured) 1,534 1,041 98 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

7. Land held for future development

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

At cost Freehold land 465,823 468,078 455,730 456,046 Long leasehold land 27,867 31,931 27,867 31,931

At 1 January 493,690 500,009 483,597 487,977 Additions 834 10,968 834 10,968 Disposal (756) (808) (756) (808)

493,768 510,169 483,675 498,137 Transfer to land and development expenditure – Freehold land (11,429) (13,223) (11,381) (11,284) – Leasehold land (2,071) (3,256) (2,071) (3,256)

(13,500) (16,479) (13,452) (14,540)

At 31 December 480,268 493,690 470,223 483,597

Included in the above are: Freehold land 453,638 465,823 443,593 455,730 Leasehold land 26,630 27,867 26,630 27,867

480,268 493,690 470,223 483,597

The status of the land titles are as follows: – registered in the name of the holding corporation 9,723 25,058 9,723 25,058 – in the process of being transferred to the name of the Company 304,658 342,911 304,658 342,911 – in the progress of being issued 19,254 18,800 19,254 18,800

333,635 386,769 333,635 386,769

Security Freehold and leasehold land of the Group and of the Company with carrying amount of RM55,335,000 (2007: RM23,443,000) and RM53,035,000 (2007: RM21,115,000) are charged to the bank as security for borrowings granted to the Group and Company as disclosed in Note 15. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 99

8. Deferred tax assets Recognised deferred tax assets and liabilities Deferred tax assets and liabilities attributable to the following:

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Property, plant and equipment (96) (113) (95) (112) Investment properties (667) (585) (667) (585) Convertible unsecured loan stocks (“CULS”) 15,814 16,178 15,814 16,178 Others 643 643 97 52

15,694 16,123 15,149 15,533

Movement in temporary differences during the year:

At Recognised At 31 Recognised At 31 1 January in income December in income December 2007 statement 2007 statement 2008 RM’000 RM’000 RM’000 RM’000 RM’000

Group Property, plant and equipment (74) (39) (113) 17 (96) Changes in fair value of investment properties — (585) (585) (82) (667) Convertible unsecured loan stocks 15,860 318 16,178 (364) 15,814 Others — 643 643 — 643

15,786 337 16,123 (429) 15,694

Company Property, plant and equipment (73) (39) (112) 17 (95) Changes in fair value of investment properties — (585) (585) (82) (667) Convertible unsecured loan stocks 15,860 318 16,178 (364) 15,814 Others — 52 52 45 97

15,787 (254) 15,533 (384) 15,149 100 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

9. Property development projects Property development projects comprise the following:

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Land – Freehold land 14,968 1,583 11,284 — – Long leasehold land 8,934 4,822 8,078 4,822 Development cost 130,063 120,331 88,786 74,863

153,965 126,736 108,148 79,685 Add: Costs incurred during the year – Development costs 141,039 41,991 110,178 30,095 Transfer from land held for property development 13,500 16,479 13,452 14,540

308,504 185,206 231,778 124,320 Less: Costs recognised as an expense in income statement – Previous year (18,588) (24,676) (5,475) (16,172) – Current year (75,259) (18,588) (57,121) (5,475)

Sub-total 214,657 141,942 169,182 102,673 Transfer to inventories (7,444) (6,565) (7,444) —

207,213 135,377 161,738 102,673

The title to the long leasehold land is held in escrow by the holding corporation.

Included in the development cost of the Group and of the Company is interest expenses capitalised during the financial year of RM1,302,000 (2007: RM668,000) and RM421,000 (2007: NIL) respectively.

Freehold and long leasehold land of the Group and of the Company with carrying amount of RM14,056,000 (2007: NIL) and RM12,556,000 (2007: NIL) are charged to the bank as security for borrowings granted to the Group and Company as disclosed in Note 15. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 101

10. Inventories

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Completed houses 26,351 35,822 16,745 18,282 Other inventories 25 19 25 19

26,376 35,841 16,770 18,301

Certain titles of the completed houses of the Group and of the Company with carrying amount of RM26,123,000 (2007: RM28,838,000) and RM16,745,000 (2007: RM18,282,000) are held in escrow by the holding corporation.

11. tRADE and other receivables

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Trade receivables 41,103 39,771 33,565 33,128 Progress billings receivable 13,325 245 7,922 — Other receivables, deposits and prepayments 14,278 3,946 10,739 915 Due from holding corporation – non-trade 329 436 329 436 Due from subsidiaries – trade — — 11,726 12,888 – non-trade — — 1,605 1,828 — — 13,331 14,716 Due from related companies – trade 4,139 — 4,139 — – non-trade 859 795 806 795 4,998 795 4,945 795 74,033 45,193 70,831 49,990

Included in other receivables is a deposit of RM9,819,000 (2007: NIL) paid for the proposed acquisition of 4,000,000 existing ordinary shares of RM1.00 each in Windsor Trade Holdings Sdn. Bhd. (“WTHSB”) and subscription of 10,000,000 new ordinary shares of RM1.00. (see Note 28) 102 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

12. Short term investments

Group/Company 2008 2007 RM’000 RM’000

Quoted shares in Malaysia At cost 102 117

Market value 102 117

13. Cash and bank balances Included in cash and bank balances of the Group and of the Company is an amount of RM4,587,000 (2007: RM2,662,000) and RM3,581,000 (2007: RM2,281,000), of which the utilisation is subject to the Housing Developers (Housing Development Account) Regulations 2002.

14. Share capital and reserves Share capital

Group/Company Group/Company Number of ordinary shares 2008 2007 2008 2007 RM’000 RM’000 ‘000 ‘000

Ordinary shares of RM1.00 each: Authorised 500,000 500,000 500,000 500,000

Issued and fully paid 122,000 122,000 122,000 122,000 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 103

14. Share capital and reserves (continued) Reserves

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Non-distributable Share premium reserve 78,582 78,582 78,582 78,582 CULS (Note 15) 291,388 291,388 291,388 291,388 Treasury shares (855) (855) (855) (855) 369,115 369,115 369,115 369,115 Distributable Retained earnings 162,216 149,351 127,063 129,589

531,331 518,466 496,178 498,704

Total equity 653,331 640,466 618,178 620,704

Share premium Share premium arose in 1996 from the following:

Group/Company RM’000

Special issue of 42,952,000 ordinary shares of RM1.00 each at RM2.20 per share for acquisition of land and landed properties 51,542 Restricted public issue of 10,000,000 new ordinary shares of RM1.00 each at RM2.20 per share to the entitled shareholders of Kulim (Malaysia) Berhad 12,000 Public issue of 15,000,000 new ordinary shares of RM1.00 each at RM2.20 per share 18,000 Less: Listing expenses (2,960)

78,582 104 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

14. Share capital and reserves (continued) treasury shares At the Extraordinary General Meeting held on 21 May 2008, the Company’s shareholders renewed the scheme to repurchase its own shares. The Directors of the Company are committed to enhance the value of the Company to its shareholders and believe that the repurchase scheme can be applied in the best interest of the Company and its shareholders.

The number of outstanding shares in issue after deducting treasury shares held at the financial year end is 121,048,200 (2007: 121,048,200) ordinary shares of RM1.00 each.

Treasury shares have no rights to voting, dividends and participation in any other distribution. Treasury shares shall not be taken into account in calculating the number of percentage of shares or of a class of shares in the Company for any purposes including substantial shareholding, take-overs, notices, the requisitioning of meetings, the quorum for a meeting and the result of a vote on a resolution at a meeting.

None of the treasury shares has been resold or distributed as share dividends during the financial year.

Section 108 tax credit and tax exempt account Subject to agreement by the Inland Revenue Board, the Company has sufficient Section 108 tax credit and tax exempt account to frank the payment of dividends out of its entire distributable reserves at 31 December 2008.

The Finance Act, 2007 introduced a single tier company income tax system with effect from year of assessment 2008. As such, the Section 108 tax credit as at 31 December 2007 will be available to the Company until such time the credit is fully utilised or upon expiry of the six-year transitional period on 31 December 2013, whichever is earlier. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 105

15. Loans and borrowings

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Non-current Secured Bridging loans 10,729 24,928 — — Finance lease liabilities 188 — 188 — Term loan 14,076 — 14,076 —

24,993 24,928 14,264 — Unsecured CULS — 35,717 — 35,717 24,993 60,645 14,264 35,717 Current Secured Bank overdrafts 36,450 20,093 36,450 20,093 Finance lease liabilities 55 — 55 — Term loan 5,953 — 5,953 — Bridging loans 66,270 — 46,842 — Revolving credits 5,074 5,074

113,802 20,093 94,374 20,093 Unsecured Bank overdrafts 29,903 54,192 29,903 54,192 Revolving credits 4,000 9,066 — 5,066 CULS 18,010 — 18,010 —

51,913 63,258 47,913 59,258

165,715 83,351 142,287 79,351

190,708 143,996 156,551 115,068

Security Certain bank overdrafts and term loan facilities of the Company are secured by way of fixed charge on freehold land and leasehold land of the Company with carrying amount RM53,788,000 (2007: RM21,115,000) and a corporate guarantee by the holding corporation.

Bridging loans of the Group and of the Company are secured over freehold land with carrying amount of RM33,983,000 (2007: RM4,352,000) and RM30,183,000 (2007: NIL) respectively. 106 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

15. Loans and borrowings (continued) terms and debt repayment schedule Year of Carrying maturity amount Under 1 year 1 – 2 years 2 – 5 years RM’000 RM’000 RM’000 RM’000 Group 2008 Term loan 2012 20,029 5,953 13,329 747 Finance lease liabilities 2013 243 55 111 77 Revolving credits 9,074 9,074 — — Bank overdrafts 66,353 66,353 — — CULS 2009 18,010 18,010 — — Bridging loans 2010 – 2013 76,999 66,270* 10,729* — 190,708 165,715 24,169 824

2007 Revolving credits 9,066 9,066 — — Bank overdrafts 74,285 74,285 — — CULS 2009 35,717 — 35,717 — Bridging loan 2010 24,928 — — 24,928 143,996 83,351 35,717 24,928

Company 2008 Term loan 2012 20,029 5,953 13,329 747 Finance lease liabilities 2013 243 55 111 77 Revolving credits 5,074 5,074 — — Bank overdrafts 66,353 66,353 — — CULS 2009 18,010 18,010 — — Bridging loans 2013 46,842 46,842* — — 156,551 142,287 13,440 824

2007 Revolving credits 5,066 5,066 — — Bank overdrafts 74,285 74,285 — — CULS 2009 35,717 — 35,717 — 115,068 79,351 35,717 —

* The repayment period of the bridging loans stretches from 2010 to 2013. However, the above repayment disclosures are based on the management’s expectation of repayment based on redemption of units sold. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 107

15. Loans and borrowings (continued) Finance lease liabilities are payable as follows:

Group/Company 2008 Minimum lease payments Interest Principal RM’000 RM’000 RM’000

Less than one year 62 7 55 Between one and five years 210 22 188

272 29 243

Convertible unsecured loan stocks

Group/Company 2008 2007 RM’000 RM’000

At 1 January/31 December 330,000 330,000

The movement of the liability component of the CULS during the year is as follows:

Group/Company 2008 2007 RM’000 RM’000

At 1 January 35,717 52,462 Interest charged 2,093 3,055 Interest accrued (19,800) (19,800)

At 31 December 18,010 35,717 108 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

15. Loans and borrowings (continued) On 15 December 2004, the Company issued 330,000,000 five (5) years Convertible Unsecured Loan Stocks (“CULS”) at nominal value RM1.00 each as part of purchase consideration for the acquisition of freehold agricultural land zoned for development located at Mukim of Tebrau, Johor Bahru from its holding corporation.

The salient features of the CULS are as follows: a) The total issuance is RM330 million.

b) The interest rate of CULS is as follows (less any Malaysian income or withholding tax applicable thereto which is required to be deducted):

Period (from issue date) Interest rate per annum First 24 months (Year 1 and 2) 1% Next 36 months (Year 3, 4 and 5) 6% The interest rate is payable annually in arrears on the last day of every 12 months period commencing from the issue date, 15 December 2004 until the maturity date, 15 December 2009 (‘Interest Payment Date’), calculated on the basis of a year of 365 days and on the actual number of days elapsed and accrues daily from and including the issue date or the previous Interest Payment Date.

c) The CULS are redeemable in full or in part at their nominal value, at the option of the Company which will be determined by the independent Directors of the Company. The redemption will be dependent on inter-alia, the availability of profits and cash flows of the Company.

d) The conversion of the CULS into new ordinary shares of RM1.00 each of the Company at a conversion price of RM1.00 per share is at the option of the CULS holder and may take place at any time after the second anniversary from the date of issue of the CULS until the maturity date.

e) The remaining CULS not redeemed or converted on maturity date will be automatically converted into ordinary shares.

f) The CULS will not be listed on the Bursa Malaysia Securities Berhad or any other stock exchange.

The CULS have been classified separately into their components parts as liability or as equity on the balance sheet in accordance with FRS 132, Financial Instruments: Disclosure and Presentation. The fair value of the liability component calculated using a prevailing market interest rate at the date of issuance for a similar non-convertible loan stock. The residual amount, representing the fair value of the equity component, including deferred tax asset, is included in shareholders’ equity. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 109

16. tRADE and other payables Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Trade payables 15,646 13,136 15,640 13,007 Other payables and accrued expenses 9,989 7,182 9,827 6,592 Due to holding corporation – non-trade 14,162 834 14,162 829 Due to a subsidiary – non-trade — — 1,833 1,833 Due to related companies – trade 11 11 11 11 – non-trade 3,317 302 3,258 302 3,328 313 3,269 313 43,125 21,465 44,731 22,574

17. Revenue Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Property development 130,017 53,993 92,263 43,186 Sales of land 1,601 3,490 1,601 3,490 Sales of goods – fresh fruit bunches 6,213 4,330 6,213 4,330 Management fee 194 189 927 389 Rental income 669 1,354 669 1,354 Dividend income — — 2,032 36,490 138,694 63,356 103,705 89,239

18. fINANCE costs Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Bank overdrafts 6,426 4,138 6,423 4,138 CULS 2,093 3,055 2,093 3,055 Term loans 1,711 — 1,711 — Bridging loans 983 312 — — Revolving credits 464 458 291 284 Other borrowings 533 12 536 13 12,210 7,975 11,054 7,490 110 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

19. oPERAting profit/(loss)

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Operating profit/(loss) is arrived at after charging/(crediting) Audit fees 112 104 86 80 Impairment loss: – investment in a subsidiary — — — 30 – quoted shares in Malaysia 24 — 24 — Allowance for doubtful debts – third parties 160 231 160 231 – a subsidiary — — (27) 1,957 Bad debts written off — 75 — — Change in fair value on investment properties (416) (2,251) (416) (2,251) Depreciation 540 496 443 392 Property, plant and equipment written off 1 690 1 2 Personnel expenses (including key management personnel): – Contributions to Employees Provident Fund 781 713 781 712 – Wages, salaries and others 6,605 6,159 6,605 6,152 Rental expenses 1 264 1 264 (Gain)/Loss on disposal of: – Property, plant and equipment (324) (18) (105) (18) – Quoted shares in Malaysia 39 (108) 39 (108) – Investment properties (250) (465) — — Investment in associate written off — 132 — — Gross dividends from quoted shares in Malaysia (4) (8) (4) (8) Rental income (669) (1,354) (669) (1,354) Laporan Tahunan 2008 Annual Report • Johor Land Berhad 111

19. oPERAting profit/(loss) (continued) key management personnel compensation Key management personnel is defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel includes all the Directors of the Group, and certain members of senior management of the Group.

Key management personnel compensation is as follows:

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Directors – Fees 315 286 315 286 – Remuneration 511 805 511 805 – Contributions to Employees Provident Fund 47 77 47 77 – Monetary value of benefits-in-kind 53 60 53 60

Total short-term employee benefits 926 1,228 926 1,228

Directors of a subsidiary – Fees — 14 — — – Remuneration — 106 — — – Contributions to Employees Provident Fund — 8 — —

Total short-term employee benefits — 128 — —

Other key management personnel: – Wages, salaries and others 386 400 386 400 – Contributions to Employees Provident Fund 41 43 41 43 – Monetary value of benefits-in-kind 11 11 11 11

438 454 438 454

1,364 1,810 1,364 1,682

Other key management personnel comprises persons other than the Directors of Group entities, having authority and responsibility for planning, directing and controlling the activities of the entity either directly or indirectly. 112 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

20. tAX expense

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Tax expense – Current year 6,027 1,381 4,030 9,392 – (Over)/Under provided in prior years (351) 534 (349) 525 5,676 1,915 3,681 9,917 Deferred tax expense/(income) – Origination and reversal of temporary differences 523 (221) 478 370 – Over provided in prior years (94) (116) (94) (116) 429 (337) 384 254 6,105 1,578 4,065 10,171 Share of tax of equity accounted associates 3,633 3,355 — — 9,738 4,933 4,065 10,171

RM’000 RM’000 RM’000 RM’000 Reconciliation of effective tax expense Profit for the year 19,184 6,690 3,793 19,524 Total tax expense 9,738 4,933 4,065 10,171 Profit excluding tax 28,922 11,623 7,858 29,695

Tax at Malaysian tax rate of 26% (2007: 27%) 7,548 3,168 2,043 8,018 Effect of lower tax rate for certain subsidiaries (60) (30) — — Non deductible expenses 2,116 715 1,859 1,158 Effect of change in tax rate* 606 597 606 597 Non taxable income (59) (126) — — Difference in effective tax rate of equity accounted associates 32 (48) — — Effect of unrecognised deferred tax — 251 — — Others — (12) — (11) 10,183 4,515 4,508 9,762 (Over)/Under provided in prior years (445) 418 (443) 409 Tax expense 9,738 4,933 4,065 10,171

* The corporate tax rate is at 26% for year of assessment 2008 and 25% for the subsequent years of assessment. Consequently, deferred tax assets are measured using these tax rates. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 113

21. Earnings per ordinary share Basic earnings per ordinary share The calculation of basic earnings per ordinary share at 31 December 2008 was based on the profit attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding calculated as follows:

Group 2008 2007 RM’000 RM’000

Profit attributable to ordinary shareholders 19,184 6,690

Numbers Numbers ‘000 ‘000

Weighted average number of ordinary shares Number of shares in issue at beginning of year 122,000 122,000 Effect of treasury shares held (952) (952) Effect of conversion of CULS (Note 29) 110,000 110,000

Weighted average number of ordinary shares in issue 231,048 231,048

Basis earnings per ordinary share (sen) 8.30 *2.90

* The comparative figures for basic and diluted earnings per ordinary share have been revised to incorporate the conversion of CULS subsequent to year end (Note 29). 114 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

21. Earnings per ordinary share (continued) Diluted earnings per ordinary share The calculation of diluted earnings per ordinary share at 31 December 2008 was based on profit attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares, calculated as follows:

Group/Company 2008 2007 RM’000 RM’000 Profit attributable to ordinary shareholders 19,184 6,690 Add: Assuming savings in interest expense on CULS, net of tax 1,549 2,230

Adjusted net profit for calculating diluted earnings per ordinary share 20,733 8,920

Numbers Numbers ‘000 ‘000 Weighted average number of ordinary shares 231,048 231,048 Assuming full conversion of CULS as at the date of issue 220,000 220,000

Weighted average number of ordinary shares (diluted) at 31 December 451,048 451,048

Diluted earnings per ordinary share (sen) 4.60 1.98

22. Dividends Dividends recognised in the current year by the Company are:

Sen per share Total amount Date of payment RM’000 2008 2007 – Final, net of tax 2.2 2,687 7 July 2008 2008 – Interim, net of tax 3.0 3,632 30 January 2009

Total amount 6,319

2007 2006 – Final, net of tax 2.2 2,651 29 June 2007 2007 – Interim, net of tax 2.9 3,535 25 January 2008

Total amount 6,186 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 115

23. Acquisition of property, plant and equipment During the financial year, the Group and the Company acquired property, plant and equipment with an aggregate cost of RM360,000 (2007: RM665,000) and RM359,000 (2007: RM638,000) respectively of which RM275,000 and RM275,000 was financed by finance lease liabilities.

24. fINANCIAL instruments Financial risk management objectives and policies Exposure to credit, liquidity, cash flow and interest rate risks arise in the normal course of the Group’s and of the Company’s business. The Group and the Company have formulated a financial risk management framework whose principal objective is to minimise the Group’s and the Company’s exposure to risks and/or costs associated with the financing, investing and operating activities of the Group and of the Company.

Credit risks At balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.

Liquidity risk The Group and the Company monitors and maintains a level of cash and cash equivalents deemed adequate by management to finance the operations and to mitigate the effects of fluctuation in cash flow.

Cash flow risk The Group and the Company review their cash flow position regularly to manage their exposure to fluctuations in future cash flows associated with their monetary financial instruments.

Interest rate risk The Group’s and the Company’s investment in fixed-rate debt securities and its fixed rate borrowings are exposed to a risk of change in their fair value due to changes in interest rates. The Group’s and Company’s investments in variable-rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates. Investments in equity securities and short term receivables and payables are not exposed to interest rate risk.

There is no formal hedging policy with respect to interest rate exposure. Exposure to interest rate risk is monitored on an ongoing basis and the Group and the Company endeavour to keep the exposure at an acceptable level.

Interest expense on the CULS is calculated on the effective yield basis by applying the effective interest rate 5.745% (2007: 5.745%) for an equivalent non-convertible loan stock to liability component of the CULS. 116 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

24. fINANCIAL instruments (continued) Effective interest rate and repricing analysis In respect of interest-earning financial assets and interest-bearing financial liabilities, the following table indicates their average effective interest rates at the balance sheet date and the periods in which they mature, or if earlier, reprice.

Average effective interest Less than 1 – 2 2 – 5 Group rate Total 1 year years years % RM’000 RM’000 RM’000 RM’000

2008 Fixed rate instruments Secured finance lease liabilities 2.30 243 55 111 77 Secured bridging loans 8.25 76,999 66,270 10,729 — Unsecured CULS – liability 5.70 18,010 18,010 — —

95,252 84,335 10,840 77

Floating rate instruments Secured bank overdrafts 7.0 – 7.2 36,450 36,450 — — Secured term loan 6.7 – 7.0 20,029 20,029 — — Unsecured bank overdrafts 7.2 29,903 29,903 — — Unsecured revolving credits 5.9 4,000 4,000 — — Secured revolving credits 5,074 5,074 — —

95,456 95,456 — —

2007 Fixed rate instruments Unsecured CULS – liability 5.7 35,717 — 35,717 — Secured bridging loan 7.3 24,928 — — 24,928

60,645 — 35,717 24,928

Floating rate instruments Unsecured bank overdrafts 8.0 74,285 74,285 — — Unsecured revolving credits 4.4 – 5.6 9,066 9,066 — —

83,351 83,351 — — Laporan Tahunan 2008 Annual Report • Johor Land Berhad 117

24. fINANCIAL instruments (continued)

Average effective interest Less than 1 – 2 2 – 5 Company rate Total 1 year years years % RM’000 RM’000 RM’000 RM’000

2008 Fixed rate instruments Secured finance lease liabilities 2.30 243 55 111 77 Secured bridging loans 8.25 46,842 46,842 — — Unsecured CULS – liability 5.70 18,010 18,010 — —

65,095 64,907 111 77

Floating rate instruments Secured bank overdrafts 7.0 – 7.2 36,450 36,450 — — Secured term loan 6.7 – 7.0 20,029 20,029 — — Unsecured bank overdrafts 7.2 29,903 29,903 — — Secured revolving credits 5.9 5,074 5,074 — —

91,456 91,456 — —

2007 Fixed rate instruments Unsecured CULS – liability 5.7 35,717 — 35,717 —

Floating rate instruments Secured bank overdrafts 8.0 20,093 20,093 — — Unsecured bank overdrafts 8.0 54,192 54,192 — — Unsecured revolving credits 5.6 5,066 5,066 — —

79,351 79,351 — — 118 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

24. fINANCIAL instruments (continued) Fair values Recognised financial instruments The carrying amounts of current financial assets and liabilities approximate their fair values due to the relatively short term nature of these financial instruments.

The Company provides financial guarantees to bank for credit facility extended to a subsidiary. The fair value of such financial guarantee is not expected to be material as the probability of the subsidiary defaulting on the credit line is remote.

The fair value of other financial assets and liabilities, together with the carrying amounts shown in the balance sheets, are as follows:

2008 2007 Carrying Fair Carrying Fair amount value amount value RM’000 RM’000 RM’000 RM’000

Group Short term investment in quoted shares 102 102 117 117 Finance lease liabilities (243) (243) — — Bridging loans (76,999) (71,415) (24,928) (24,928) CULS – liability (18,010) (18,010) (35,717) (35,717)

Company Short term investment in quoted shares 102 102 117 117 Finance lease liabilities (243) (243) — — Bridging loan (46,842) (43,696) — — CULS – liability (18,010) (18,010) (35,717) (35,717) Laporan Tahunan 2008 Annual Report • Johor Land Berhad 119

24. fINANCIAL instruments (continued) Estimation of fair values The following summarises the methods used in determining the fair values of financial instruments reflected in the table.

Fair value of quoted shares is based on quoted market prices at the balance sheet date without any deduction for transaction costs.

The carrying amount of convertible unsecured loan stocks approximates its fair value as the instrument is calculated using a prevailing market rate at the date of issuance for a similar convertible loan stocks.

The carrying amount of the term loan approximates its fair values as the effective interest rate is comparable to the movements in the market interest rate.

25. Contingent liabilities

Company 2008 2007 RM’000 RM’000

Corporate guarantees given to a licensed bank for banking facilities granted to a subsidiary (secured) 30,157 24,928

26. Related parties For the purposes of these financial statements, parties are considered to be related to the Group or the Company if the Group or the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. 120 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notes to the Financial Statements

26. Related parties (continued) The significant related party transactions of the Group and of the Company are as follows:

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Holding corporation Interest accrued on CULS 20,197 20,523 20,197 20,523 Services expenses 5 34 — 24 Services income — 11 — 11

Subsidiaries Management fee receivable — — 733 200 Sales of completed houses — — — 10,556

Related companies Interest charged 130 — 130 — Sales of motor vehicles 63 — 63 — Sales of land 4,356 — 4,356 — Sales of finished goods – fresh fruit bunches 6,213 4,330 6,213 4,330 Services expenses 3,026 2,210 3,026 2,210 Services income 206 48 206 48 Rental expenses — 278 — 278 Secretarial fees expenses 12 — 12 — Security service expenses 531 556 531 550 Annual report expenses 46 60 46 60 Registrar fees expenses 112 133 112 133 Insurance expenses 195 236 175 209

Related parties Professional fees paid to firms in which certain Directors are partners 106 54 85 54

A charitable organisation in which the spouse of a Director is the Chairman – Donation 120 120 120 120 – Sale of land — 2,500 — 2,500 – Balance outstanding in respect of the sale of land — 2,250 — 2,250

Donation to a Foundation in which a Director is the Chairman 150 150 150 150 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 121

27. Segment reporting There is no segment information presented as the Group is primarily engaged in housing development activities and operates principally in Malaysia.

28. Significant event On 6 February 2008, the Company entered into a Sale and Purchase Agreement Cum Subscription of Sale Agreement with Tengku Shaifful Bahri Bin Tengku Zainal Abidin (the Vendor) and Windsor Trade Holdings Sdn. Bhd. (“WTHSB”) in respect of the proposed acquisition of 4,000,000 existing ordinary shares of RM1.00 each in WTHSB and subscription of 10,000,000 new ordinary shares of RM1.00 each.

The total consideration of RM15,000,000 to be paid by the Company for the Proposed Acquisition shall be funded via the Company’s internally generated funds and/or borrowings.

As at to date, the Company has obtained approval from the Foreign Investment Committee on the Proposed Acquisition.

The completion of the acquisition is still subject to certain conditions precedent as stated in the Sale and Purchase Agreement. (see Note 11)

29. Subsequent event On 19 February 2009, the 110,000,000 CULS were converted into 110,000,000 units of new ordinary shares of RM1.00 each. The 110,000,000 new ordinary shares were granted for listing on Bursa Malaysia Securities Berhad on 26 February 2009. With the conversion, the issued and paid-up capital of the Company is RM232,000,000 divided into 232,000,000 units of ordinary shares of RM1.00 each.

30. Capital commitment

Group 2008 2007 RM’000 RM’000

Investment Contracted but not provided for 5,181 — 122 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Location of Land Bank and Projects

DAERAH SEGAMAT

DAERAH DAERAH 1 MERSING LEDANG

DAERAH MUAR

DAERAH KLUANG

DAERAH BATU PAHAT

14 DAERAH KOTA TINGGI

11 DAERAH KULAIJAYA 3 6 2 8 DAERAH DAERAH 9 PONTIAN JOHOR BAHRU 7 13 4 5 12 10

LAND BANK PROJECT 1 Pagoh Land (55.65 acres) 6 Taman Komersil Senai 11 Kota Sentral 2 Bandar Dato’ Onn (1,402.75 acres) 7 Tebrau Business Park 12 Taman Cendana 3 Bandar Tiram (1,088.55 acres) 8 Green Plains 13 Taman Seroja 4 Inderaputra Land (0.84 acres) 9 Taman Bukit Tiram 14 Perumahan Bandar Tenggara 5 Taman Bukit Dahlia (177.28 acres) 10 Taman Mawar Laporan Tahunan 2008 Annual Report • Johor Land Berhad 123

List of Properties

Revaluation of land and buildings will be carried out only if there are intended sales or when market values have changed materially. Details of the landed properties owned by the JLand Group as at 31 December 2008 are as follows:

Net book value as at Tenure/Approx. Land area/ 31.12.2008 Acquisition Title/Location age of building Existing use Built-up area RM’000 Date

A. FIXED ASSETS Bungalow lot at Green Plains PTD 57050 HS(D) 187333 Freehold/14 years Double storey 4,423.00 sq metres 877 1998 Mukim of Tebrau bungalow 400.00 sq metres District of Johor Bahru

Shophouse at Taman Bintang PTD 22925 HS(D) 13369 Freehold/12 years Double storey 143.07 sq metres 203 1995 Mukim of Senai-Kulai shop house 272.00 sq metres District of Johor Bahru

B. INVESTMENT PROPERTIES Bungalow lot at Taman Bertam Lot 4429 – 4431 Freehold 3 vacant 2,222.00 sq metres 780 1995 HS(D) 1664 – 1666 bungalow lots Mukim 6, Seberang Prai Utara Penang

Lot 4453 – 4454 Freehold 2 vacant 1,482.00 sq metres 520 2004 HS(D) 5824 – 5825 bungalow lots Mukim 6, Seberang Prai Utara Penang

Kompleks Mutiara Johor Land PTD 84127 HS(D) 281731 Freehold/14 years Sport 24.69 acres 27,500 2007 Mukim of Tebrau Complex 357.24 sq metres District of Johor Bahru 124 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

List of Properties

Net book value as at Tenure/Approx. Land area/ 31.12.2008 Acquisition Title/Location age of building Existing use Built-up area RM’000 Date

C. FUTURE DEVELOPMENT Bandar Tiram (Phase 1) PTD 143340 – 143999 Freehold Mixed housing 53.83 acres 16,351 2001 HS(D) 443338 – 443988 development Mukim of Tebrau District of Johor Bahru

PTD 195750 – 196052 HS(D) 443040 – HS(D) 443337 Mukim of Plentong District of Johor Bahru

Bandar Tiram (Phase 2) PTD 113308 – 113435 Freehold Oil palm estate 76.63 acres 10,213 1995 HS(D) 375296 – 375423 Mukim of Tebrau District of Johor Bahru

Bandar Tiram (Phase 3) PTD 105766 Freehold Oil palm estate 572.49 acres 42,809 1995 HS(D) 354246 PTD 105767 HS(D) 354247 Mukim of Tebrau District of Johor Bahru

PTD 105769 Freehold Oil palm estate 170.64 acres 7,764 1995 HS(D) 354249 PTD 105770 HS(D) 354250 PTD 14616 – 14618 HS(D) 62950 – 62952 Mukim of Tebrau District of Johor Bahru (Owned by ADSB) Laporan Tahunan 2008 Annual Report • Johor Land Berhad 125

Net book value as at Tenure/Approx. Land area/ 31.12.2008 Acquisition Title/Location age of building Existing use Built-up area RM’000 Date

C. FUTURE DEVELOPMENT (Cont’d.) Bandar Tiram (Phase 4) PTD 105768 Freehold Oil palm estate 97.31 acres 7,277 1995 HS(D) 354248 Mukim of Tebrau District of Johor Bahru

Bandar Tiram (Phase 5) Lot 12 CT 556, Lot 14 CT 557 Freehold Oil palm estate 117.65 acres 8,797 1995 Lot 18 CT 561 Lot 860 CT 562 Lot 2016 CT 567 Part of Lot 1176 CT 565 Part of Lot 1182 CT 566 Mukim of Kota Tinggi District of Kota Tinggi

Taman Bukit Tiram (Phase 2) PTD 144544 – 144557 Freehold 14 vacant 0.61 acres 49 1995 HS(D) 449681 – 449694 Shopoffice Mukim of Tebrau District of Johor Bahru (Owned by ADSB)

PTD 85036 – 85077 Freehold 42 vacant 4.44 acres 353 1995 HS(D) 307437 – 307478 bungalow lots Mukim of Tebrau District of Johor Bahru (Owned by ADSB)

PTD 85080 – 85139 Freehold Mixed housing 6.43 acres 512 1995 HS(D) 307479 – 307538 development PTD 85275 – 85533 HS(D) 307673 – 307929 Mukim of Tebrau District of Johor Bahru (Owned by ADSB) 126 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

List of Properties

Net book value as at Tenure/Approx. Land area/ 31.12.2008 Acquisition Title/Location age of building Existing use Built-up area RM’000 Date

C. FUTURE DEVELOPMENT (Cont’d.) Taman Bukit Tiram (Phase 3) PTD 88267 – 88273 Freehold 7 vacant 3.37 acres 405 1995 HS(D) 302582 – 302588 bungalow lots Mukim of Tebrau District of Johor Bahru (Owned by ADSB)

PTD 130271 – 130297 Freehold Mixed housing 4.30 acres 443 1995 HS(D) 401455 – 401481 development Mukim of Tebrau District of Johor Bahru (Owned by ADSB)

PTD 138183 – 138387 Freehold Mixed housing 5.03 acres 519 1995 HS(D) 427149 – 427350 development PTD 138421 – 238443 HS(D) 427379 – 427401 Mukim of Tebrau District of Johor Bahru (Owned by ADSB)

Taman Bukit Dahlia (Block A) PTD 156278 – 156289 99 years lease Mixed housing 16.03 acres 3,608 1995 HS(D) 318171 – 318182 Expiring on development PTD 156312 – 156335 22.6.2100 HS(D) 318205 – 318228 PTD 156358 – 156381 HS(D) 318251 – 318273 PTD 156404 – 156415 HS(D) 318296 – 318307 PTD 156290 – 156311 HS(D) 318183 – 318204 PTD 156336 – 156357 HS(D) 318229 – 318250 PTD 156382 – 156403 HS(D) 318274 – 318295 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 127

Net book value as at Tenure/Approx. Land area/ 31.12.2008 Acquisition Title/Location age of building Existing use Built-up area RM’000 Date

C. FUTURE DEVELOPMENT (Cont’d.) Taman Bukit Dahlia (Block A) PTD 156446 – 156473 HS(D) 318337 – 318364 PTD 156532 – 156559 HS(D) 318935 – 318962 PTD 156417 – 156445 HS(D) 318308 – 318336 PTD 156474 – 156500 HS(D) 318365 – 318391 PTD 156501 – 156531 HS(D) 318904 – 318934 PTD 156560 – 156588 HS(D) 318963 – 318991

PTD 190546 – 190639 99 years lease HS(D) 436699 – 436792 Expiring on PTD 190641 – 190652 07.11.2105 HS(D) 436793 – 436804 PTD 190654 – 190703 HS(D) 436805 – 436854 Mukim of Plentong District of Johor Bahru

Taman Bukit Dahlia (Block C) Development land 99 years lease Mixed housing 54.40 acres 5,800 1995 Mukim of Plentong (Land titles is development District of Johor Bahru yet to be issued)

Taman Bukit Dahlia (Block D) Development land 99 years lease Mixed housing 48.24 acres 5,781 1995 Mukim of Plentong (Land titles is development District of Johor Bahru yet to be issued) 128 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

List of Properties

Net book value as at Tenure/Approx. Land area/ 31.12.2008 Acquisition Title/Location age of building Existing use Built-up area RM’000 Date

C. FUTURE DEVELOPMENT (Cont’d.) Taman Bukit Dahlia (Block E) PTD 179254 – 179322 99 years lease Mixed housing 10.89 acres 2,415 1995 HS(D) 371082 – 371150 Expiring on development PTD 179337 – 179348 30.6.2103 HS(D) 371165 – 371176 PTD 179350 – 179451 HS(D) 371177 – 371278 PTD 179907 – 179937 HS(D) 371734 – 371764 PTD 179989 – 180016 HS(D) 371816 – 371843 PTD 180059 – 180083 HS(D) 371886 – 371910 PTD 180118 – 180138 HS(D) 371945 – 371965 PTD 180173 – 180216 HS(D) 372000 – 372043 Mukim of Plentong District of Johor Bahru

Taman Bukit Dahlia (Block F) PTD 155634 – 155669 99 years lease Mixed housing 3.95 acres 976 1995 HS(D) 317527 – 317562 Expiring on development Mukim of Plentong 2.7.2100 District of Johor Bahru

PTD 179207 – 179208 Freehold Mixed housing 1.52 acres 352 1995 HS(D) 391369 – 391370 development PTD 179223 – 179240 HS(D) 391385 – 391402 Mukim of Plentong District of Johor Bahru

Development land 99 years lease Mixed housing 42.25 acres 4,154 1995 Mukim of Plentong (Land title is development District of Johor Bahru yet to be issued) Laporan Tahunan 2008 Annual Report • Johor Land Berhad 129

Net book value as at Tenure/Approx. Land area/ 31.12.2008 Acquisition Title/Location age of building Existing use Built-up area RM’000 Date

C. FUTURE DEVELOPMENT (Cont’d.) Bandar Dato’ Onn PTD 139444 – 139467 Freehold Mixed housing 28.28 acres 15,059 2004 HS(D) 455063 – 455086 development PTD 139469 – 139597 HS(D) 455087 – 455215 PTD 139624 – 139697 HS(D) 455216 – 455289 PTD 139699 – 139718 HS(D) 455290 – 455309 PTD 139728 – 139735 HS(D) 455310 – 455317 PTD 139738 – 139787 HS(D) 455318 – 455367 PTD 139795 – 139839 HS(D) 455368 – 455412 PTD 139842 – 139912 HS(D) 455413 – 455483 PTD 139914 – 140085 HS(D) 455484 – 455655 Mukim of Tebrau District of Johor Bahru

Development land Freehold Mixed housing 1,329.78 acres 327,096 2004 Mukim of Tebrau (Land titles is development/ District of Johor Bahru yet to be issued) oil palm estate

PTD 84126 & 84128 Freehold Vacant land 16.41 acres 8,589 2006 HS(D) 281730 & 281732 Mukim of Tebrau District of Johor Bahru

Inderaputra Land PTB 21108 HS(D) 380523 Freehold Vacant land 3,409.22 sq metres 7,049 2000 Mukim of Bandar Johor Bahru District of Johor Bahru

Pagoh Land Development land Leasehold Mixed housing 55.65 acres 3,896 1998 Mukim of Jorak (Land title is development District of Muar yet to be issued) 130 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Shareholdings’ Statistics As at 31 March 2009

Authorised Share Capital : RM500,000,000 Issued & Fully Paid-Up Capital : RM232,000,000 less 951,800 Treasury Shares = 231,048,200 Class of Shares : Ordinary Share of RM1/= each

Voting Right of Shareholders Every member of the Company present in person or by proxy shall have one vote on a show of hand and in the case of a poll shall have one vote for every share of which he/she is the holder.

Break down of Shareholdings

No. of Size of Shareholdings Shareholders % No. of Shares % Less than 100 715 8.26 25,130 0.01 100 – 1,000 4,136 47.80 2,334,437 1.01 1,001 – 10,000 3,154 36.46 11,568,966 5.01 10,001 – 100,000 570 6.59 15,857,150 6.86 100,001 to less than 5% of Issued Capital 75 0.87 31,563,714 13.66 5% and above of Issued Capital 2 0.02 169,698,803 73.45 TOTAL 8,652 100.00 231,048,200 100.00

Top Thirty Securities Account Holders (Without aggregating the securities from different securities accounts belonging to the same depositor) Name No. of Shares % 1 Johor Corporation 150,942,420 65.33 2 Johor Corporation 18,756,383 8.12 3 Kumpulan Waqaf An-Nur Berhad 4,318,937 1.87 4 Amanah Raya Noms (T) Sdn Bhd – A/C Skim Amanah Saham Bumiputera 3,294,580 1.43 5 Johor Corporation 2,892,270 1.25 6 Ke-Zan Noms (T) Sdn Bhd – A/C Kim Eng Secs Pte Ltd for Md Yusoff bin Md Ali 1,400,000 0.61 7 DB (M) Nom (A) Sdn Bhd – A/C Exempt An for Deutsche Bank AG Singapore (PWM Asing) 1,000,000 0.43 8 HSBC Noms (A) Sdn Bhd – A/C Exempt An for HSBC Private Bank (Suisse) S.A. (SPORE TST ACCL) 996,500 0.43 9 Terengganu Incorporated Sdn Bhd 850,060 0.37 10 Ke-Zan Noms (T) Sdn Bhd – A/C Mohd Fauzy bin Abdullah 840,000 0.36 11 Quah Wee Lai 645,000 0.28 12 Zalaraz Sdn Bhd 638,690 0.28 13 Citigroup Noms (A) Sdn Bhd – A/C Exempt An for OCBC Securities Private Limited (Client A/C-NR) 610,947 0.26 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 131

Top Thirty Securities Account Holders (cont’d.) (Without aggregating the securities from different securities accounts belonging to the same depositor) Name No. of Shares % 14 Khalid bin Mohamad Jiwa 547,000 0.24 15 Shoptra Jaya (M) Sdn Bhd 501,800 0.22 16 HLG Nom (A) Sdn Bhd – A/C Exempt An for UOB Kay Hian Pte Ltd (A/C Clients) 448,120 0.19 17 OSK Noms (T) Sdn Bhd – A/C DMG & Partners Securities Pte Ltd for Tan Hian-Tsin (31-12122) 436,000 0.19 18 Citigroup Noms (A) Sdn Bhd – A/C Exempt An for Citibank NA, Singapore (Julius Baer) 433,500 0.19 19 Citigroup Noms (A) Sdn Bhd – A/C Exempt An for Citibank NA (Charles Schwab) 424,200 0.18 20 HDM Noms (T) Sdn Bhd – A/C Mohd Fauzy bin Abdullah (M09) 415,000 0.18 21 Tabung Amanah Warisan Negeri Johor 402,950 0.17 22 Mayban Noms (T) Sdn Bhd – A/C Liew Kon Sing @ Liew Kong 387,150 0.17 23 Lee Siew Hoon 380,600 0.16 24 Suraya Elland Yusoff 352,000 0.15 25 Johor Corporation 350,980 0.15 26 Mayban Noms (T) Sdn Bhd – A/C Chuang Show Chuan (014084102077) 350,000 0.15 27 Arshad bin Ayub 317,980 0.14 28 Philip Goey Soon Loong 305,500 0.13 29 Mayban Noms (T) Sdn Bhd – A/C Wong Soot Yin @ Ong Soot Yin (014084423225) 300,000 0.13 30 Lim Kian Huat 297,600 0.13

Substantial Shareholders

Direct Indirect Name No. of No. of Shares % Shares % 1 Johor Corporation – 5 a/cs 172,944,083 74.85 — —

Analysis of Shareholders No. of Shareholders % No. of Shares % Malaysian – Bumiputra 923 10.67 189,740,969 82.12 – Others 6,680 77.21 28,861,487 12.49 Foreigners 1,049 12.12 12,445,744 5.39 TOTAL 8,652 100.00 231,048,200 100.00 132 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN THAT the Thirty Fourth (34th) Annual General Meeting of Johor Land Berhad will be held at Tanjung Puteri 306, Persada Johor International Convention Centre, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor on Friday, 22 May 2009 at 11.00 a.m. for the following purposes:-

AS ORDINARY BUSINESSES:- 1. To receive and adopt the Report and the Audited Financial Statements for the financial year ended 31 December 2008 and the Reports of the Directors and Auditors thereon; Resolution 1

2. To re-elect the following Directors who retire in accordance with the Company’s Articles of Association:- (i) Kua Hwee Sim (Article 87) Resolution 2 (ii) Abdul Malek Bin Talib (Article 87) Resolution 3 (iii) Yusof Bin Rahmat (Article 87) Resolution 4

3. To re-elect Dato Hj Hassan Bin Hj Mohd Yunos, who is over the age of seventy (70) who retires in accordance with Section 129(6) of the Companies Act, 1965; Resolution 5

4. To approve the payment of Directors’ fees in respect of the financial year ended 31 December 2008; Resolution 6

5. To re-appoint Messrs KPMG as Auditors of the Company and to authorise the Directors to fix their remuneration; Resolution 7

6. To transact any other business of which due notice shall have been given; Laporan Tahunan 2008 Annual Report • Johor Land Berhad 133

AS SPECIAL BUSINESSES:- To consider, and if thought fit, to pass the following Resolutions as Ordinary Resolutions:- 7. ORDINARY RESOLUTION 1 AUTHORITY TO ISSUE SHARES PURSUANT TO SECTION 132(D) OF THE COMPANIES ACT, 1965 “THAT pursuant to Section 132(D) of the Companies Act, 1965, the Directors be and are hereby authorised to allot and issue shares of the Company at any time until the conclusion of the next Annual General Meeting (“AGM”), upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion shall deem fit provided always that the aggregate number of shares to be allotted and issued shall not exceed ten percent (10%) of the issued share capital of the Company for the time being, subject always to the approval of all relevant regulatory bodies being obtained for such allotment and issue.” (See note) Resolution 8

8. ORDINARY RESOLUTION 2 PROPOSED RENEWAL OF THE SHARE BUY-BACK AUTHORITY “THAT, subject always to the Companies Act, 1965 (“Act”), the provisions of the Articles of Association of the Company and the Listing Requirements (“Listing Requirements”) of Bursa Malaysia Securities Berhad (“Bursa Securities”) and any other relevant authorities, the Company be and is hereby authorised, to the extent permitted by law, to purchase its own ordinary share of RM1.00 each in the Company (“Shares”) as may be determined by the Directors of the Company from time to time through Bursa Securities upon such terms and conditions as the Directors may deem fit an expedient in the interests of the Company provided that:- (a) The maximum number of Shares which may be purchased by the Company shall not exceed ten percent (10%) of the total issued and paid-up share capital of the Company for the time being subject to the restriction that the issued and paid-up capital of the Company does not fall below the applicable minimum share capital requirement of the Listing Requirements; (b) The maximum fund to be allocated by the Company for the purpose of purchasing its Shares shall not exceed the retained profits and the share premium account of the Company; and (c) Upon completion of the purchase by the Company of its own Shares, the Directors of the Company are authorised to deal with the shares so bought-back in their absolute discretion in any of the following manners:- (i) cancel the Shares so purchased; or (ii) retain the Shares so purchased as treasury shares and held by the Company; or (iii) retain part of the Shares so purchased as treasury shares and cancel the remainder,

and the treasury shares may be distributed as dividend to the Company’s shareholders and/or resold in the open market in accordance with the relevant rules of Bursa Securities and/or subsequently cancelled. 134 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notice of Annual General Meeting

AND THAT the authority conferred by this resolution shall continue to be in force until:- (a) the conclusion of the next AGM of the Company at which such resolution was passed, at which time it shall lapse, unless by an ordinary resolution passed at that meeting, the authority is renewed either unconditionally or subject to conditions; or (b) the expiration of the period within which the next AGM is required to be held pursuant to Section 143(1) of the Act (but shall not extend to such extension as may be allowed pursuant to Section 143(2) of the Act; or (c) revoked or varied by a resolution passed by the shareholders of the Company in general meeting,

whichever is earlier.

AND THAT authority be and is hereby unconditionally and generally given to the Directors of the Company; to take all such steps as are necessary or expedient (including without limitation, the opening and maintaining of central depository account(s) under the Securities Industry (Central Depositories) Act, 1991) to implement, finalise and give full effect to the Proposed Share Buy-Back with full power to assent to any conditions, modifications and/or amendments as may be imposed by the relevant authorities and with full power to do all such acts and things thereafter in accordance with the Act, the provisions of the Memorandum and Articles of Association of the Company and the guidelines issued by Bursa Securities and any other relevant authorities.” (See note) Resolution 9

9. oRDINARY RESOLUTION 3 PROPOSED RENEWAL OF SHAREHOLDERS’ MANDATE ON RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE (“PROPOSED SHAREHOLDERS’ MANDATE”) “THAT authority be and is hereby given in line with Chapter 10.09 of the Listing Requirements of the Bursa Securities, for the Company, its subsidiaries or any of them, to renew the shareholders’ mandate for Recurrent Related Party Transactions of a Revenue or Trading nature for any of the aforesaid companies to enter into and to give effect to the specified Recurrent Related Party Transactions; all with the particulars of which are set out in the Circular to Shareholders dated 24 April 2009 (“Circular”) with the Related Parties as described in the Circular, provided that such transactions are of revenue or trading nature, which are necessary for the day-to-day operations of the Company and/or its subsidiaries, within the ordinary course of business of the Company and/or its subsidiaries, made on an arm’s length basis and on normal commercial terms which those generally available to the public and are not detrimental to the minority shareholders of the Company; and Laporan Tahunan 2008 Annual Report • Johor Land Berhad 135

AND THAT such authority shall continue to be in force until:- (a) the conclusion of the next AGM of the Company following this AGM, at which time the authority shall lapse unless by a resolution passed at a general meeting, such authority is renewed; or (b) the expiration of the period within which the next AGM after the date that is required by law to be held pursuant to Section 143(1) of the Companies Act (but shall not extent to such extensions as may be allowed pursuant to Section 143(2) of the Companies Act); or (c) revoked or varied by a resolution passed by the shareholders of the Company at a general meeting;

whichever is earlier;

AND THAT the Directors of the Company be authorised to complete and do all such acts and things (including executing all such documents as may be required) as they may consider expedient or necessary or give effect to the Proposed Shareholder’ Mandate.” (See note) Resolution 10

By Order of the Board JOHOR LAND BERHAD

JAMALLUDIN BIN KALAM (LS 02710) IDHAM JIHADI BIN ABU BAKAR ACIS (MAICSA 7007381) Secretaries

Venue: JOHOR BAHRU Dated: 24 APRIL 2009 136 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notice of Annual General Meeting

EXPLANATORY NOTE ON SPECIAL BUSINESSES:-

Resolution 8 Resolution 9 Notes:- Your Board would like to act expeditiously The proposed Resolution 9 if passed will 1. A member entitled to attend and vote at this to expand your Group’s core business, if enable the Company to utilise any of its meeting is entitled to appoint a proxy and vote instead of him. A proxy may but need not be a and when they arise. Although the surplus financial resources to purchase its member of the Company. investment sum involved may not be too own shares from the market. substantial to require shareholders’ 2. The instrument appointing a proxy shall be in writing under the hand of the appointer or his approval at an Extraordinary General Resolution 10 attorney duly authorised in writing or if the Meeting, the Directors may consider it The proposed Resolution 10 if passed is appointer is a Corporation/Company either under appropriate to finance such potential primarily to authorise the Company and/or its common seal or under the hand of its attorney business opportunities by the issue of a its unlisted subsidiaries to enter into duly authorised. limited number of new shares. In order to arrangements or transactions with Related 3. If a member appoints two proxies to attend at facilitate the process, it is thus appropriate Parties, particulars of which are set out in the same meeting, the instrument of proxy must that the Directors be authorised to issue Section 3.1(a) of the Circular to specify the proportion of his shareholdings to be represented by each proxy. shares in the Company up to an amount Shareholders dated 24 April 2009 circulated not exceeding in total 10% of the existing together with this Annual Report, which are 4. The instrument appointing a proxy must be issued capital of the Company for such necessary for the day-to-day operations of deposited at the Registered Office of the Company, at Level 2, Persada Johor International purpose during the period. This authority, the Group and are based on normal Convention Centre, Jalan Abdullah Ibrahim, unless revoked or varied at a general commercial terms that are not favourable 80000 Johor Bahru, Johor not less than forty meeting, will take effect until the next AGM to the Related Parties than those generally eight (48) hours before the time appointed for of the Company pursuant to Section 132(D) made to the public. holding the meeting or any adjournment thereof. of the Companies Act, 1965. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 137

Notis Mesyuarat Agung Tahunan

DENGAN INI DIBERITAHU BAHAWA Mesyuarat Agung Tahunan Johor Land Berhad kali ke Tiga Puluh Empat (34) akan diadakan di Tanjung Puteri 306, Pusat Konvensyen Antarabangsa Persada Johor, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor pada hari Jumaat, 22 Mei 2009 pada jam 11.00 pagi bagi tujuan-tujuan berikut:-

SEBAGAI URUSAN-URUSAN BIASA:- 1. Menerima dan meluluskan Laporan dan Penyata Kewangan Beraudit bagi tahun kewangan berakhir 31 Disember 2008 serta Laporan Pengarah-Pengarah dan Juruaudit berkaitan dengannya; Resolusi 1

2. Melantik semula Pengarah-Pengarah berikut yang bersara mengikut Tataurusan Syarikat:- (i) Kua Hwee Sim (Artikel 87) Resolusi 2 (ii) Abdul Malek Bin Talib (Artikel 87) Resolusi 3 (iii) Yusof Bin Rahmat (Artikel 87) Resolusi 4

3. Melantik semula Dato Hj Hassan Bin Hj Mohd Yunos yang berumur melebihi tujuh puluh tahun (70) yang bersara mengikut Seksyen 129(6) Akta Syarikat, 1965; Resolusi 5

4. Meluluskan pembayaran yuran Pengarah bagi tahun kewangan berakhir 31 Disember 2008; Resolusi 6

5. Melantik semula Tetuan KPMG sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-pengarah untuk menetapkan bayaran mereka; Resolusi 7

6. Menjalankan sebarang urusan Syarikat yang lain di mana notis yang sewajarnya telah diberi; 138 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notis Mesyuarat Agung Tahunan

SEBAGAI URUSAN-URUSAN KHAS:- Untuk mempertimbangkan dan sekiranya didapati wajar, meluluskan Resolusi-Resolusi Biasa berikut:- 7. RESOLUSI BIASA 1 kUASA MENERBITKAN SAHAM DI BAWAH SEKSYEN 132(D) AKTA SYARIKAT, 1965 “Bahawa selaras dengan peruntukan Seksyen 132(D) Akta Syarikat 1965, adalah dan dengan ini para Pengarah diberi kuasa untuk memperuntukkan dan menerbitkan saham-saham Syarikat pada bila-bila masa sehingga penutup Mesyuarat Agung Tahunan yang akan datang, mengikut terma-terma dan syarat-syarat tertentu dan untuk tujuan-tujuan tertentu sebagaimana para Pengarah mungkin, mengikut budibicara mutlak mereka, fikirkan wajar dengan syarat bahawa agregat bilangan saham yang akan diperuntukkan dan diterbitkan tidak melebihi sepuluh peratus (10%) daripada modal saham Syarikat yang diterbitkan buat ketika ini, tertakluk sentiasa kepada kelulusan pihak-pihak berkuasa yang berkaitan diperolehi bagi peruntukan dan terbitan saham demikian.” (Lihat nota) Resolusi 8

8. RESOLUSI BIASA 2 CADANGAN PEMBAHARUAN BIDANGKUASA PEMBELIAN-BALIK SAHAM “BAHAWA tertakluk kepada Akta Syarikat, 1965 (“Akta”), peruntukan-peruntukan oleh Tataurusan Syarikat dan Syarat-syarat Penyenaraian (“Syarat Penyenaraian”) oleh Bursa Malaysia Securities Berhad (“Bursa Securities”) dan lain-lain pihak berkuasa yang berkaitan, Syarikat dengan ini diberikuasa pada tahap yang dibenarkan oleh undang-undang untuk membeli saham biasanya bernilai tara RM1.00 sesaham di dalam Syarikat (“Saham”) sebagaimana yang akan ditentukan oleh para Pengarah dari masa ke semasa melalui Bursa Securities berdasarkan terma-terma dan syarat-syarat yang mana para Pengarah beranggapan wajar untuk kepentingan Syarikat dengan syarat: (a) Bilangan maksima Saham yang dibeli tidak melebihi sepuluh peratus (10%) dari jumlah modal diterbitkan dan berbayar Syarikat pada bila-bila masa tertakluk kepada had modal yang diterbitkan dan berbayar Syarikat adalah tidak kurang daripada keperluan minima modal Syarikat di bawah Syarat Penyenaraian; (b) Jumlah maksima dana yang diperuntukkan oleh Syarikat bagi tujuan pembelian Saham hendaklah tidak melebihi daripada jumlah keuntungan terkumpul dan akaun premium saham Syarikat; dan (c) Selepas selesai pembelian Saham oleh Syarikat, Pengarah-pengarah adalah diberikuasa untuk menguruskan Saham yang dibeli balik menurut kuasa mutlak mereka dengan mana-mana cara berikut:- (i) batalkan Saham yang dibeli; atau (ii) simpan Saham yang dibeli sebagai saham perbendaharaan dan dipegang oleh Syarikat; atau (iii) simpan sebahagian Saham yang dibeli sebagai saham perbendaharaan dan sebahagian lagi dibatalkan,

dan saham perbendaharaan boleh dibahagikan sebagai dividen kepada pemegang-pemegang saham Syarikat dan/atau dijual balik di pasaran terbuka menurut undang-undang yang berkaitan dari Bursa Securities dan/atau seterusnya dibatalkan. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 139

DAN BAHAWA kuasa yang diberikan oleh resolusi in akan berkuatkuasa sehingga:- (a) Selesai Mesyuarat Agung Tahunan Syarikat berikutnya di mana kuasa tersebut akan luput kecuali dengan resolusi biasa yang diluluskan di dalam mesyuarat agung tersebut, kuasa tersebut akan diperbaharui samada bersyarat atau tanpa syarat; atau (b) tamat tempoh di mana Mesyuarat Agung Tahunan berikutnya selepas tarikh yang disyaratkan oleh undang- undang akan diadakan menurut Seksyen 143 (1) Akta tersebut (tetapi lanjutannya tidak boleh dilanjutkan seperti yang dibenarkan menurut Seksyen 143 (2) Akta tersebut; atau (c) dibatalkan atau diubah melalui resolusi yang diluluskan oleh pemegang saham Syarikat dalam mesyuarat agung, yang mana lebih awal;

DAN BAHAWA para Pengarah dengan ini tanpa syarat dan secara umum diberikuasa untuk melaksanakan semua tindakan-tindakan dan perkara-perkara (termasuk membuka dan mengekalkan akaun (akuan-akaun) depositari berpusat di bawah Akta Industri Sekuriti (Depositari Berpusat) 1991) untuk melaksanakan, menyelesaikan dan memberi kesan penuh kepada Cadangan Pembaharuan Bidangkuasa Pembelian-Balik Saham dengan kuasa penuh untuk memberi persetujuan kepada sebarang syarat-syarat, pembetulan-pembetulan, perubahan-perubahan (sekiranya ada) menurut peruntukan-peruntukan Akta, Tataujud dan Tataurusan Syarikat dan garis panduan yang dikeluarkan oleh Bursa Securities dan lain-lain pihak berkuasa tempatan berkaitan.” (Lihat nota) Resolusi 9

9. RESOLUSI BIASA 3 CADANGAN PEMBAHARUAN MANDAT PEMEGANG SAHAM DAN MANDAT TAMBAHAN UNTUK TRANSAKSI BERULANG DENGAN PIHAK BERKAITAN YANG BERUNSURKAN PENDAPATAN ATAU DAGANGAN (“CADANGAN MANDAT PARA PEMEGANG SAHAM”) “BAHAWA dengan ini kuasa diberi selaras dengan Bab 10.09 Syarat-syarat Penyenaraian Bursa Securities (“Syarat-syarat Penyenaraian”), untuk syarikat, anak-anak syarikatnya atau sesiapa di kalangan mereka untuk memperbaharui mandat pemegang saham bagi Urusniaga Transaksi Berulang Pihak Berkaitan yang berunsurkan pendapatan atau dagangan bagi mana-mana syarikat yang berkaitan untuk mengadakan dan bagi memberikan kesan ke atas Urusniaga Transaksi Berulang Pihak Berkaitan tersebut; di mana butiran yang berkaitan seperti yang dinyatakan di dalam Pekeliling kepada para pemegang saham bertarikh 24 April 2009 (“Pekeliling tersebut”) dengan pihak-pihak berkaitan seperti yang diterangkan di dalam Pekeliling tersebut dengan syarat transaksi-transaksi tersebut adalah berunsur bisnes biasa Syarikat dan/atau syarikat-syarikat subsidiarinya, dibuat berdasarkan kesaksamaan dan menurut terma-terma komersial yang kebiasaannya disediakan kepada awam dan tidak merugikan pemegang saham minoriti Syarikat; 140 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Notis Mesyuarat Agung Tahunan

DAN BAHAWA kuasa yang diberikan ini akan berkuatkuasa sehingga:- (a) Selesai Mesyuarat Agung Tahunan Syarikat berikutnya di mana kuasa tersebut akan luput kecuali dengan satu resolusi yang diluluskan di dalam mesyuarat agung, kuasa tersebut akan diperbaharui; atau (b) tamat tempoh di mana Mesyuarat Agung Tahunan berikutnya selepas tarikh yang disyaratkan oleh undang- undang akan diadakan menurut Seksyen 143(1) Akta tersebut (tetapi lanjutannya tidak boleh dilanjutkan seperti yang dibenarkan menurut Seksyen 143(2) Akta tersebut; atau (c) dibatalkan atau diubah melalui resolusi yang diluluskan oleh pemegang saham Syarikat dalam mesyuarat agung;

yang mana lebih awal.

DAN BAHAWA para Pengarah Syarikat adalah dan dengan ini diberikuasa untuk menyelesaikan dan melakukan semua tindakan dan perkara (termasuk melaksanakan semua dokumen sebagaimana yang diperlukan) sebagaimana mereka fikirkan sesuai atau perlu untuk memberi kesan kepada Cadangan Mandat Pemegang Saham.” (Lihat nota) Resolusi 10

Dengan Perintah Lembaga Pengarah JOHOR LAND BERHAD

JAMALLUDIN BIN KALAM (LS 02710) IDHAM JIHADI BIN ABU BAKAR ACIS (MAICSA 7007381) Setiausaha-Setiausaha

Tempat: JOHOR BAHRU Tarikh: 24 APRIL 2009 Laporan Tahunan 2008 Annual Report • Johor Land Berhad 141

NOTA KETERANGAN BAGI URUSAN-URUSAN KHAS:-

Resolusi 8 Resolusi 9 Nota:- Lembaga Pengarah perlu bertindak Resolusi 9 yang dicadangkan, jika 1. Seorang ahli yang berhak menghadiri dan merebut peluang-peluang memperbesarkan diluluskan, adalah untuk memberi kuasa mengundi dalam Mesyuarat ini berhak melantik seorang proksi untuk menghadiri bagi pihak perniagaan utama Kumpulan dengan kepada Syarikat menggunakan mana-mana dirinya. Seorang proksi tidak semestinya seorang segera, apabila dan jika peluang-peluang sumber lebihan kewangannya untuk ahli syarikat. itu muncul. Biarpun jumlah pelaburannya membeli saham-sahamnya dari pasaran. 2. Suratcara perlantikan proksi hendaklah dibuat mungkin tidak terlalu besar sehingga perlu secara bertulis oleh pelantik atau wakil mutlak mendapatkan kelulusan para pemegang Resolusi 10 yang berkuasa atau jika pelantik adalah sebuah saham menerusi Mesyuarat Agung Resolusi 10 yang dicadangkan, sekiranya Perbadanan/Syarikat suratcara mestilah Luarbiasa, para Pengarah mungkin perlu diluluskan, adalah khusus untuk memberi disempurnakan di bawah meterai Perbadanan/ Syarikat atau di dalam bidang kuasa wakil untuk membiayai peluang perniagaan yang kuasa kepada Syarikat dan/atau syarikat- mutlak. berpotensi itu dengan menerbitkan syarikat subsidiarinya yang tidak tersenarai sebilangan saham-saham baru. Bagi untuk membuat penentuan-penentuan atau 3. Apabila seorang ahli melantik dua orang proksi dalam mesyuarat yang sama, perlantikan tersebut memenuhi proses ini, adalah wajar para transaksi-transaksi dengan Pihak-Pihak hendaklah menyatakan bilangan saham yang Pengarah diberikan kuasa menerbitkan Berkaitan, yang mana butirannya akan diwakili oleh proksi masing-masing. saham-saham dalam Syarikat dengan diterangkan di dalam Seksyen 3.1(a) di 4. Suratcara perlantikan proksi hendaklah sampai di jumlahnya tidak melebihi sepuluh peratus dalam Pekeliling kepada para Pemegang Pejabat Berdaftar Syarikat, di Aras 2, Pusat (10%) daripada terbitan modal saham Saham bertarikh 24 April 2009 yang Konvensyen Antarabangsa Persada Johor, Jalan Syarikat sedia ada untuk tujuan itu dalam diedarkan bersama-sama dengan Laporan Abdullah Ibrahim, 80000 Johor Bahru, Johor tempoh berkenaan. Kuasa ini kecuali Tahunan ini, yang perlu untuk operasi tidak lewat dari empat puluh lapan (48) jam sebelum mesyuarat ditetapkan atau sebarang dibatalkan atau diubahsuai dalam harian Kumpulan dan yang berdasarkan mesyuarat penangguhannya. mesyuarat agung, akan berkuatkuasa kepada terma-terma komersial yang lazim sehingga tamat Mesyuarat Agung Tahunan yang tidak lebih memihak kepada pihak- Syarikat berikutnya menurut Seksyen pihak berkaitan dari yang ada pada 132(D) Akta Syarikat, 1965. umumnya disediakan untuk awam. 142 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Statement Accompanying The Notice of Annual General Meeting

1. Directors who are standing for re-election at the Thirty Fourth (34th) Annual General Meeting of the Company scheduled to be held at Tanjung Puteri 306, Persada Johor International Convention Centre, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor on Friday, 22 May 2009 at 11.00 a.m are as follows:-

(i) Kua Hwee Sim (Article 87) Resolution 2 (ii) Abdul Malek Bin Talib (Article 87) Resolution 3 (iii) Yusof Bin Rahmat (Article 87) Resolution 4 (v) Dato Hj Hassan Bin (Section 129(6) of the Resolution 5 Hj Mohd Yunos Companies Act, 1965)

The profiles of the Directors standing for re-election are on pages 16, 17, 19, 20.

2. The Thirty Third (33rd) Annual General Meeting of the Company was held at Main Hall, Kompleks Mutiara Johor Land, Jalan Bukit Mutiara, Bandar Dato’ Onn, 81100 Johor Bahru, Johor on Wednesday, 21 May 2008 at 12.00 noon.

3. Four (4) Board of Directors’ meetings were held during the financial year ended 31 December 2008. Laporan Tahunan 2008 Annual Report • Johor Land Berhad 143

Penyata Bersama Notis Mesyuarat Agung Tahunan

1. Para Pengarah yang menawarkan diri untuk dipilih semula pada Mesyuarat Agung Tahunan Syarikat yang ke Tiga Puluh Empat (34) yang dijadualkan akan diadakan di Tanjung Puteri 306, Pusat Konvensyen Antarabangsa Persada Johor, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor pada hari Jumaat, 22 Mei 2009 pada jam 11.00 pagi adalah seperti berikut:-

(i) Kua Hwee Sim (Artikel 87) Resolusi 2 (ii) Abdul Malek Bin Talib (Artikel 87) Resolusi 3 (iii) Yusof Bin Rahmat (Artikel 87) Resolusi 4 (v) Dato Hj Hassan Bin (Seksyen 129(6) Resolusi 5 Hj Mohd Yunos Akta Syarikat, 1965)

Profil para Pengarah yang menawarkan diri untuk dipilih semula adalah seperti di muka surat 16, 17, 19, 20.

2. Mesyuarat Agung Tahunan Syarikat yang ke Tiga Puluh Tiga (33) telah diadakan di Dewan Utama, Kompleks Mutiara Johor Land, Jalan Bukit Mutiara, Bandar Dato’ Onn, 81100 Johor Bahru, Johor pada hari Rabu, 21 Mei 2008 pada jam 12.00 tengahari.

3. Empat (4) mesyuarat Ahli Lembaga Pengarah telah diadakan pada tahun kewangan berakhir 31 Disember 2008. 144 Johor Land Berhad • Laporan Tahunan 2008 Annual Report

Corporate Directory

JOHOR LAND BERHAD Bandar Tiram Division/Sales Office JOHOR LAND MANUFACTURING (Company No: 12379-K) Taman Bukit Tiram SDN BHD 81800 Ulu Tiram (Company No: 301430-D) Main Office Johor, Malaysia Kompleks Mutiara Johor Land Kompleks Mutiara Johor Land Tel : 07-863 2692 Jalan Bukit Mutiara Jalan Bukit Mutiara Fax : 07-863 4692 Bandar Dato’ Onn Bandar Dato’ Onn 81100 Johor Bahru 81100 Johor Bahru Pasir Gudang Division Johor, Malaysia Johor, Malaysia No. 23, Jalan Dahlia Tel : 07-356 4888 Tel : 07-356 4888 Taman Bukit Dahlia Fax : 07-356 4889 Fax : 07-356 4889 81700 Pasir Gudang Johor, Malaysia Johor Bahru Division Tel : 07-251 5692 PEMBINAAN PREFAB SDN BHD Kompleks Mutiara Johor Land Fax : 07-256 4611 (Company No: 30936-A) Jalan Bukit Mutiara Kompleks Mutiara Johor Land Bandar Dato’ Onn Pasir Gudang Sales Office Jalan Bukit Mutiara 81100 Johor Bahru Mini Dahlia, Persiaran Dahlia 1 Bandar Dato’ Onn Johor, Malaysia Taman Bukit Dahlia 81100 Johor Bahru Tel : 07-356 4888 81700 Pasir Gudang Johor, Malaysia Fax : 07-356 4889 Johor, Malaysia Tel : 07-356 4888 Tel : 07-252 2692 Fax : 07-356 4889 Bandar Dato’ Onn Division/Sales Office Fax : 07-252 8108 Kompleks Mutiara Johor Land Jalan Bukit Mutiara REVERTEX (MALAYSIA) SDN BHD Bandar Dato’ Onn ADVANCE DEVELOPMENT SDN BHD (Company No: 13437-V) 81100 Johor Bahru (Company No: 13974-A) 1½ Miles, Jalan Batu Pahat Johor, Malaysia Kompleks Mutiara Johor Land K.B. 508 Tel : 07-356 4888 Jalan Bukit Mutiara 86000 Kluang Fax : 07-356 4889 Bandar Dato’ Onn Johor, Malaysia 81100 Johor Bahru Tel : 07-773 1000 Johor, Malaysia Fax : 07-772 4669 Tel : 07-356 4888 Fax : 07-356 4889 Proxy Form

*I/We (BLOCK LETTERS) of being *a member/members of JOHOR LAND BERHAD hereby appoint the *Chairman of the Meeting or

as *my/our Proxy to vote for *me/us on *my/our behalf at the Thirty Fourth (34th) Annual General Meeting of the Company to be held on Friday, 22 May 2009 at 11.00 a.m. or at any adjournment of such meeting. Should you desire to direct your Proxy how to vote on the resolutions set out in the Notice of Meeting and as summarised below, please indicate with an “X” in the appropriate space. If no direction as to voting is given, the Proxy will vote or abstain at his/her discretion.

RESOLUTION DESCRIPTION FOR AGAINST 1 To receive the report and the Audited Financial Statements 2 To re-elect Kua Hwee Sim as Director (Article 87) 3 To re-elect Abdul Malek Bin Talib as Director (Article 87) 4 To re-elect Yusof Bin Rahmat as Director (Article 87) 5 To re-elect Dato Hj Hassan Bin Hj Mohd Yunos as Director (Section 129(6) of the Companies Act, 1965) 6 To approve Directors’ fees 7 To re-appoint Auditors 8 To approve issuance of shares 9 To approve share buy-back authority 10 To approve proposed shareholders’ mandate

Number of shares

Signed this day of 2009. Signature of Member(s)/ Common Seal of Appointer

Notes:- 1. A member entitled to attend and vote at this meeting is entitled to appoint a proxy and vote instead of him. A proxy may but need not be a member of the Company. 2. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing or if the appointer is a Corporation/Company either under its common seal or under the hand of its attorney duly authorised. 3. If a member appoints two proxies to attend at the same meeting, the instrument of proxy must specify the proportion of his shareholdings to be represented by each proxy. 4. The instrument appointing a proxy must be deposited at the Registered Office of the Company, at Level 2, Persada Johor International Convention Centre, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor not less than forty eight (48) hours before the time appointed for holding the meeting or any adjournment thereof. (*) Please strike out whichever inapplicable. FOLD HERE

FOLD HERE

STAMP

COMPANY SECRETARY

JOHOR LAND BERHAD (12379-K) Level 2, Persada Johor International Convention Centre Jalan Abdullah Ibrahim 80000, Johor Bahru Johor, Malaysia Borang Proksi

*Saya/Kami (HURUF BESAR) beralamat sebagai *ahli/ahli-ahli JOHOR LAND BERHAD dengan ini melantik *Pengerusi Mesyuarat atau

sebagai Proksi *saya/kami untuk mengundi bagi pihak *saya/kami dalam Mesyuarat Agung Tahunan Syarikat kali Ke Tiga Puluh Empat (34) yang akan diadakan pada hari Jumaat, 22 Mei 2009, jam 11.00 pagi atau di sebarang penangguhannya. Jika anda ingin mengarahkan Proksi anda mengundi ke atas resolusi-resolusi yang dinyatakan di dalam Notis Mesyuarat dan seperti ringkasan di bawah, tandakan dengan “X” dalam ruang yang disediakan. Jika tiada arahan tertentu diberi, Proksi anda akan mengundi atau berkecuali mengikut budi bicaranya sendiri.

RESOLUSI KETERANGAN MENYOKONG MENENTANG 1 Menerima laporan dan Penyata Kewangan Beraudit 2 Melantik semula Kua Hwee Sim sebagai Pengarah (Artikel 87) 3 Melantik semula Abdul Malek Bin Talib sebagai Pengarah (Artikel 87) 4 Melantik semula Yusof Bin Rahmat sebagai Pengarah (Artikel 87) 5 Melantik semula Dato Hj Hassan Bin Hj Mohd Yunos sebagai Pengarah (Seksyen 129(6) Akta Syarikat, 1965) 6 Meluluskan bayaran Yuran Pengarah 7 Melantik semula Juruaudit 8 Meluluskan penerbitan saham-saham 9 Meluluskan bidangkuasa pembelian balik saham 10 Meluluskan cadangan mandat para pemegang saham

Bilangan Saham

Ditandatangani pada haribulan 2009. Tandatangan Ahli/Ahli-ahli/ Cop Mohor Pelantik Nota:- 1. Seorang ahli yang berhak menghadiri dan mengundi dalam Mesyuarat ini berhak melantik seorang proksi untuk menghadiri bagi pihak dirinya. Seorang proksi tidak semestinya seorang ahli Syarikat. 2. Suratcara perlantikan proksi hendaklah dibuat secara bertulis oleh pelantik atau wakil mutlak yang berkuasa atau jika pelantik adalah sebuah perbadanan/syarikat, suratcara mestilah disempurnakan di bawah meterai perbadanan/syarikat atau di dalam bidang kuasa wakil mutlak. 3. Apabila seorang Ahli melantik dua orang proksi dalam mesyuarat yang sama, perlantikan tersebut hendaklah menyatakan bilangan saham yang akan diwakili oleh proksi masing-masing. 4. Suratcara perlantikan proksi hendaklah sampai di Pejabat Berdaftar Syarikat, di Aras 2, Pusat Konvensyen Antarabangsa Persada Johor, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor tidak lewat dari empat puluh lapan (48) jam sebelum mesyuarat ditetapkan atau sebarang mesyuarat penangguhannya. (*) Sila potong mana-mana yang tidak berkenaan. Lipat Di sini

Lipat Di sini

Setem

SETIAUSAHA SYARIKAT

JOHOR LAND BERHAD (12379-K) Aras 2, Pusat Konvensyen Antarabangsa Persada Johor Jalan Abdullah Ibrahim 80000, Johor Bahru Johor, Malaysia Johor Land Berhad (12379-K) Kompleks Mutiara Johor Land Jalan Bukit Mutiara Bandar Dato’ Onn 81100 Johor Bahru Johor, Malaysia

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