UNLOCKING POTENTIAL IOI City Tower, Putrajaya

ANNUAL REPORT 2014

With a clearer focus, IOI Properties Group Berhad (“IOIPG”) is set to further its impact as a top developer. From townships and resorts to commercial buildings and luxury high-rise developments, IOIPG is diversifying offerings while expanding its presence to Singapore and the People’s Republic of China (“PRC”).

Anchored on management’s strengths, expertise and resources, we are optimising on our potential to grow sustainable value for our shareholders.

IOI Palm City, Xiamen, PRC

South Beach at Beach Road, Singapore CREATING TOWNSHIPS OF EXCELLENCE, WE NURTURE QUALITY LIFESTYLES

ANCHORED ON CORE STRENGTHS, WE DELIVER GREATER VALUE

FULFILLING ASPIRATIONS, WE ARE GROWING A GLOBAL REPUTE ACROSS BORDERS IOI City Mall, Putrajaya Primed and ready…

...we are set to unlock further value for our stakeholders. IOI Palm City, Xiamen, PRC

Cape Royale at Sentosa Cove, Singapore

JOURNEY TO LISTING

Building our way through more than two decades of property excellence, we recently embarked on that next big step towards charting the course of our future. When IOI Properties Group Berhad (“IOIPG”) was listed on the Main Board of Bursa Malaysia on 15 January 2014, shares surged 28% making us Malaysia’s largest property company with a market capitalisation of RM10.4 billion at the time of listing. This signifies a reinforcement of the foundation we laid when we first ventured into this business of shaping dream homes for Malaysians. Today, with a landbank of approximately 10,000 acres, we can confidently say that we are well on our way to leave a stronger mark in the property industry, both locally and abroad. Milestones

1984 1995 – 1999 2007 – 2009 2010 – 2014

Ventured into property Forayed into the property Forayed into the Singapore Launched 16 Sierra, a development. market in Johor with the market by successfully 535-acre of township launch of Bandar Putra tendering with Ho Bee development in Puchong Kulai, a 5,680-acre of Investment Ltd for a South. 1985 – 1990 comprehensive township 3.6-acre land for the luxury development. condominium development First foray into Xiamen, Launched Taman Mayang of Seascape at Sentosa the People’s Republic of housing project in Petaling Launched Bandar Putra Cove, Singapore. China (“PRC”) with the Jaya. Segamat township in Johor. successful tender of a Successfully tendered with 7.7-acre land for residential Launched Bandar Puchong IOI Mall in Bandar Puchong Ho Bee Investment Ltd for a and commercial development Jaya, a 930-acre of Jaya commenced operations. 5.3-acre land for the luxury of IOI Park Bay. township development in condominium development Launched Bandar Puteri Puchong, Selangor. of Cape Royale at Sentosa Entered into a joint venture Puchong, a 930-acre of Cove, Singapore. with City Development township development in Limited (“CDL”) for the Puchong, Selangor. Launched Taman Kempas mixed development of Utama township in Johor South Beach in Singapore. Bahru. Successfully tendered for Purchased a freehold a 6.03-acre land for the parcel of land at Farrer condominium development Park, Singapore for the of The Trilinq at Jalan condominium development Lempeng in Singapore. of Cityscape. Second foray into Xiamen, PRC with the purchase of a 44-acre land for the mixed development of IOI Palm City in Jimei District. KEY INDICATORS

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JAN FEB MAR APR MAY JUN 2014

IOI PROPERTIES GROUP BERHAD FTSE BURSA MALAYSIA KLCI KL PROPERTY

WE PROFIT FROM OUR PRINCIPLES

2013* RM’000 unless otherwise stated (pro forma) 2014 PROFIT BEFORE TAXATION 904,759 1,120,404 EARNINGS PER SHAREN1 (SEN) 21.41 27.47 NET ASSETS PER SHARE (RM) 3.19 3.46 SHARE PRICE (RM) (as at 18 Sept 2014) N/A 2.70 MARKET CAPITALISATION N/A 8,745,339

* The Group’s inancial performance and inancial positions are prepared on the assumption that the business combinations had taken place from the beginning of each inancial period. This is to provide a meaningful comparison of the inancial performance of the Group. N1 Basic earnings per share is calculated by dividing net proit attributable to owners of the Company by the number of ordinary shares outstanding at the end of the reporting period ie. 3,239,014,726 throughout each inancial period. Annual General Meeting IOI PROPERTIES GROUP BERHAD(1035807-A) Venue : Putrajaya Ballroom I, Putrajaya Marriott Hotel, IOI Resort, 62502 Putrajaya, Malaysia Date : Monday, 27 October 2014 Time : 10:00 am

CONTENTS

Our Vision 028 Sustainability and Corporate 077 Financial Reports Responsibility Our Core Values 214 Group Properties 032 Corporate Responsibility Journey to Listing – Social Contributions 224 Notice of Annual General Meeting Key Indicators 037 Corporate Information 228 Annexure I 02 Chairman’s Statement 038 Board of Directors 230 Statement Accompanying 06 Group Financial Position 040 Proﬁle of Directors Notice of Annual General Meeting 07 Group Performance 047 Senior Management Team Highlights 231 Shareholders’ Information 048 Regional Presence 08 Segmental Performance Proxy Form 049 Location of Operations 010 Group Quarterly Results in Malaysia

011 Financial Calendar 050 Corporate Calendar

Management’s Discussion 054 Audit and Risk Management and Analysis Committee Report

012 Group Business Review 058 Statement on – Overview Corporate Governance

016 Group Business Review 071 Statement on Risk Management – Property Development and Internal Control

022 Group Business Review 074 Statement of – Property Investment Directors’ Interests

026 Group Business Review 075 Shareholdings of – Leisure and Hospitality Senior Management Team

076 Other Information 02 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

CHAIRMAN’S STATEMENT IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 03

Dear Shareholders, On behalf of the Board of Directors and the management, it gives me great pleasure to present to you the inaugural Annual Report of IOI Properties Group Berhad (“IOIPG”) for the financial year ended 30 June 2014 (“FY2014”).

The listing was the result of a major to serve on the board. I am very pleased market sentiment turned cautious, corporate exercise undertaken by IOI with the current line-up and am looking particularly in Singapore, which resulted in Corporation Berhad (“IOIC”), the former forward to working with the directors to its high-end and mass market properties holding company of the Group. The bring the Group to new heights. being drastically impacted. corporate exercise entailed an internal reorganisation within the IOIC Group, Sales of domestic properties at prime OPERATING ENVIRONMENT which resulted in the streamlining of locations however remained encouraging despite a cautious property market plantation assets and property-related The year under review was challenging. backdrop. This may have been contributed assets in two separate and independent The property sector was impacted by the by the strong Malaysian economy which legal entities. This restructuring had various cooling measures introduced in expanded by 4.7% in 2013, driven by positioned IOIPG Group as one of the 2013 and 2014 by the relevant authorities the continued strong growth in domestic largest property groups in the country to manage and stabilise the property demand, coupled with the underlying in terms of land bank which amounts to markets in localities that the Group had private consumption growth which approximately 10,000 acres. operations in. Though the measures were remained strong at 7.6%. meant to curb speculation, the property IOIPG was listed on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) on 15 January 2014. This date marks an important milestone for the Group, for not only did the restructured The listing exercise, leveraging on IOIPG’s strengths and track record, has positioned it as one of the leading property players in the country. IOIPG make its relisting on Bursa Malaysia as a new enlarged entity after a six-year absence, it also debuted as one of the largest property companies on Bursa Malaysia by market capitalisation. The Company made an impressive 70 sen premium above its reference price of RM2.51 to debut at RM3.21 per share, achieving a market capitalisation of RM10.4 billion.

Prior to the relisting, the Group also embarked on the exercise of inviting prominent and experienced individuals 04 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

CHAIRMAN’S STATEMENT (Cont’d)

revenue contribution from our property two blocks of 31-storey development development, property investment, leisure consisting of commercial, retail and and hospitality and other operations residential components. contributed RM1,243.48 million, RM104.89 million, RM58.32 million and In our investment property division, the RM47.76 million respectively. Group has added approximately 495,000 sq. ft. to its existing portfolio with the The Group’s ﬁnancial position remains completion of Tower 4 and 5 in Puchong healthy with a total asset of RM14,725.08 Financial Corporate Centre (“PFCC”) in million and with cash at cash equivalents FY2014 to complement the existing two of RM618.25 million. Net asset per share ofﬁce towers which were completed in for FY2014 stands at RM3.46 per share. 2009. The development which fronts the The Company continues to manage its Damansara-Puchong Highway and a LRT capital in a proactive manner to enhance station, is very strategically located. To shareholder value whilst ensuring group further enhance the vibrancy of Bandar The addition of two new hotels, Four Points by funding requirements are met with Puteri Puchong, Tower 3 has been Sheraton Puchong and Le Meridien Putrajaya, marks gearing levels effectively managed. The designated to house a hotel and will be IOIPG’s consistent initiatives to spearhead innovative Group’s net gearing ratio for FY2014 managed by Four Points under Starwood developments. stands at a healthy level of 13%. Hotels & Resorts Worldwide, Inc.

Construction of the iconic South Beach Whilst in the Peoples’ Republic of China BUSINESS DEVELOPMENTS development in Singapore, a joint venture (“PRC”), the prohibition of single-person with City Developments Limited, is also For the financial year under review, the households from buying more than one progressing well and is currently 55% Group acquired a few parcels of land in residential property and the increase in completed. The development which Malaysia to enhance its land bank. minimum down-payment for all buyers was designed by Foster+Partners, will of second homes, have to a certain In the Greater Kuala Lumpur, we acquired comprise residential, office and retail extent dampened property demand. an additional 83 acres in the fast-growing space. It will also have a 654-room hotel Nevertheless, our operations in Xiamen areas of Bangi for a total consideration which will offer a revolutionary design have been very encouraging, mainly of about RM103.0 million. These new concept by renowned creative designer driven by the underlying economic and acquisitions will complement our existing Philippe Starck. trade activities in the region, particularly 226 acres held in this location where the with Xiamen being a port city, serving as a Group is currently developing its latest gateway to the PRC. CORPORATE DEVELOPMENTS township, Bandar Puteri Bangi. This township will consist of both commercial On 9 May 2014, the Company announced FINANCIAL RESULTS components, as well as, gated and guarded that its wholly-owned subsidiary, IOIP residential precincts with landscaped and Capital Management Sdn Bhd has For FY2014, the Group posted a revenue themed gardens to encourage communal submitted an application to the Securities of RM1,454.45 million, and a net interactions. The township is located next Commission Malaysia (“SC”) on a profit of RM903.74 million, backed by to the Kuala Lumpur-Seremban highway proposed issuance of an unrated sukuk better performances from the Group’s and is directly accessible via the Putra issuance programme of up to the nominal developments in Johor, the Klang Mahkota interchange. The first product value of RM1,500 million under the Valley and its maiden development in launch from this township will be in this Shariah principal of Murabahah (“Sukuk Xiamen, PRC. Sales in Xiamen were very financial year. Programme). encouraging as 97% of the two phases launched at our IOI Park Bay project was In Johor, we have acquired several parcels The Sukuk Programme shall have a tenure sold by the end of the financial period. of land in Kulaijaya, Taman Permas of up to fifteen years from the date of first Jaya and Nusajaya @ Iskandar Malaysia issuance. A total of 2,667 units of residential and for future developments for a total commercial units were transacted in the consideration of RM222.39 million. The Company received the SC’s approval financial year under review. In terms of authorising the Sukuk Programme on total number of units transacted, this PJ Midtown, our first joint venture 23 June 2014 which is now pending would be the highest in our pre-listing development with Sime Darby Brunsfield completion. sales history. On a segmental basis, in Section 13, Petaling Jaya will comprise IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 05

SUSTAINABILITY AND CORPORATE PROSPECTS In our more established townships RESPONSIBILITY in Puchong, which are currently Against the backdrop of tighter financial undergoing rapid transformation due to Besides driving sustainable profit growth criteria by banks on loan approvals, the construction of the LRT line, we will and returns for the shareholders, the looming introduction of Goods and continue to develop our existing land Group also undertakes many corporate Services Tax (“GST”) and potential interest bank in the vicinity. Properties located responsibility (“CR”) activities. The rate hikes, I am cautiously optimistic that near LRT lines continue to be identified Group’s CR efforts are focused on sharing the property market remains sustainable, as excellent investment choices given the our success with, and giving back to the albeit at a slower rate. I believe that one increasingly congested traffic situation communities in which we operate. This of the catalyst that will serve to sustain in the Klang Valley, and I am pleased to is done mainly through Yayasan Tan Sri property demand is Malaysia’s young mention that in Puchong we have four Lee Shin Cheng (“Yayasan TSLSC”), a demographic profile since Malaysians LRT stations fronting our land bank. charitable foundation funded jointly by generally share the view that owning or Besides Malaysia, we are also upbeat on investing in properties is an important the Group and IOIC. our second Xiamen venture, IOI Palm City, financial goal in preparation of marriage which will be an integrated development As the Group continues to expand its and retirement, to finance education of consisting of shopping malls, boutique operations, it will strive to further broaden children, or to provide a form of financial office, hotel and residential components. and deepen its sustainability and CR security for the next generation. We are optimistic of mirroring the success endeavours. that we achieved from our first venture. The Group will continue to be resilient Key highlights of the Group’s many despite these challenges. As a township The Group will also be increasing its sustainability measures and CR initiatives developer, our Group is in a better position investment property portfolio with the are covered in the “Sustainability and to weather market conditions; and this opening of IOI City Mall in the last quarter Corporate Responsibility” section. is largely attributed to our flexibility in of this year. The mall will offer a net launching products that are aptly tailored lettable area of approximately 1.50 million sq. ft. and introduce new establishments DIVIDENDS to meet changing customer demands impacted by economic sentiments. The like HomePro, Index Living and District The company declared its maiden Group has two new townships in Greater 21 to Malaysians. The development will interim dividend of 8.0 sen per ordinary Kuala Lumpur, namely Bandar Puteri Bangi comprise two green rated business towers share amounting to a total payout of and Bandar Puteri Warisan in Sepang. Both and a hotel which will be managed by approximately RM259 million in respect the townships are to be developed on Le Meridien. of FY2014. The dividends represented freehold land. The initial launches for these approximately 28% distribution of two new townships will be popular landed ACKNOWLEDGMENTS the Group’s net profit attributable to property and we are positive that these shareholders. upcoming launches will be well received. The achievements of 2014 reflect the dedication of the senior management team, and the hard work and loyalty of each member of the IOIPG family, which IOIPG is constantly seeking to expand its presence, both locally and overseas, with projects such as the IOI Palm City the board gratefully acknowledges. in Xiamen, PRC. I would also like to record my gratitude for the wisdom and guidance offered by my fellow Directors and for the continued support of the shareholders of our Company. Lastly, my sincere thanks to all our customers and business associates for your unflinching support which has made it possible for the Group to achieve all that we have thus far.

I look forward to reporting to you on our success and progress in the years to come.

TAN SRI DATO’ LEE SHIN CHENG Executive Chairman 06 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

GROUP FINANCIAL POSITION

AS AT 30 JUNE 2014 (RM’000) AS AT 30 JUNE 2013* (RM’000) Assets

2,765,489 1,993,810 3,011,711 Investment 2,282,478 Investment Land held properties Land held properties for property for property development development

3,801,442 1,047,300 2,936,568 991,431 Current assets Property, plant Current assets Property, plant and equipment and equipment 3,855,746 243,387 3,575,449 203,496 Joint ventures Other non-current Joint ventures Other non-current assets assets

Equity and Liabilities

1,065,922 2,057,230 872,519 502,420 Other current Borrowings Current Borrowings liabilities liabilities 246,054 300,716 Other non-current Other non-current liabilities 11,202,530 liabilities 10,335,384 Total Total shareholders’ shareholders’ 26,855 equity 98,677 equity Non-controlling Non-controlling interests interests

Financial Statistics

In RM’000 unless otherwise stated 2014 2013* (pro forma)

Net assets per share (RM) 3.46 3.19 Gross gearing ratio (%) 18.36 4.86 Net gearing ratio (%) 12.85 0.59 Debt to equity ratio (times) 0.18 0.05

GROUP PERFORMANCE HIGHLIGHTS

In RM’000 unless otherwise stated 2014 2013* 2012* (pro forma) (pro forma)

FINANCIAL PERFORMANCE Revenue 1,454,445 1,323,259 1,052,220 Profit before taxation 1,120,404 904,759 755,692 Profit for the year 903,742 713,603 610,937 Net profit attributable to owners of the Company 889,918 693,621 599,771 Average shareholders’ equity 10,768,957 10,335,384 N/A Average capital employed 12,228,444 11,003,146 N/A Return on average shareholders’ equity (%) 8.26 6.71 N/A Basic earnings per shareN1 (sen) 27.47 21.41 18.52 Interest cover (number of times) 23.28 21.93 126.24

SEGMENT ANALYSIS Property Development Sales value 1,966,806 1,703,979 851,007 Sales (unit) 2,667 2,485 1,406 Revenue 1,243,476 1,091,193 836,820 Operating proﬁt 462,630 542,908 430,055

Property Investment Occupancy rate (%) 74 74 68 Rental yield (%) 6 6 6 Revenue 104,894 106,421 96,262 Operating proﬁt 66,575 65,632 64,696

Leisure & Hospitality Occupancy rate (%) 54-56 53-59 52-63 Revenue 58,317 87,205 73,292 Operating proﬁt 4,377 16,655 (13,430)

Others Revenue 47,758 38,440 45,846 Operating proﬁt 31,905 26,428 36,153

* The Group’s inancial performance and inancial positions are prepared on the assumption that the business combinations had taken place from the beginning of each inancial period. This is to provide a meaningful comparison of the inancial performance of the Group. N1 Basic earnings per share is calculated by dividing net proit attributable to owners of the Company by the number of ordinary shares outstanding at the end of the reporting period ie. 3,239,014,726 throughout each inancial period. 08 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

SEGMENTAL PERFORMANCE

Property Development

SALES VALUE SALES VALUE SALES (unit) RM‘000 RM‘000 1,966,806 1,966,806 2,667 1,703,979 2,485 SALES (unit) 2014 2014 1,406 2,667 *2013 851,007 *2013 *2012 *2012 0 500 1,000 1,500 2,000 0 1,000 2,000 3,000 REVENUE RM‘000 REVENUE OPERATING PROFIT 1,243,476 RM‘000 RM‘000

1,243,476 462,630 OPERATING PROFIT 542,908 1,091,193 RM‘000 430,055 2014 836,820 2014 462,630 *2013 *2013 *2012 *2012 0 300 600 900 1,200 1,500 0 200 400 600 Property Investment

REVENUE REVENUE OPERATING PROFIT RM‘000 RM‘000 RM‘000

104,894 104,894 66,575 106,421 65,632 64,696 OPERATING PROFIT 96,262 RM‘000 2014 2014 *2013 *2013 66,575 *2012 *2012 0 20 40 60 80 100 120 0 20 40 60 80

Revenue 2014 (RM’000) 58,317 104,894 Leisure & Property Hospitality Investment 47,758 Others

1,243,476 Property Development

Leisure & Hospitality

REVENUE REVENUE OPERATING PROFIT RM‘000 RM‘000 RM‘000

58,317 58,317 4,377 87,205 16,655 2014 OPERATING PROFIT 73,292 2014 *2013 RM‘000 *2013 (13,430) 4,377 *2012 *2012 0 20 40 60 80 100 -16 -8 0 8 16 32

Others

REVENUE REVENUE OPERATING PROFIT RM‘000 RM‘000 RM‘000

47,758 47,758 31,905 38,440 26,428 OPERATING PROFIT 45,846 36,153 RM‘000 2014 2014 *2013 *2013 31,905 *2012 *2012 0 10 20 30 40 50 0 10 20 30 40

Operating Proﬁt 2014 (RM’000)

66,575 Property Investment 31,905 462,630 Others Property 4,377 Development Leisure & Hospitality

GROUP QUARTERLY RESULTS

In RM’000 unless 30 September 31 December 31 March 30 June otherwise stated 2013 % 2013 % 2014 % 2014 %

Revenue 280,609 19 395,202 27 361,465 25 417,169 29

Operating proﬁt 133,259 12 368,842 35 104,914 10 461,745 43 Share of results of associates 2,178 62 1,363 39 454 13 (501) (14) Share of results of joint ventures 26,260 43 8,405 14 15,590 26 10,389 17

Proﬁt before interest and taxation 161,697 14 378,610 33 120,958 11 471,633 42 Interest income 9,705 27 8,716 24 8,161 23 9,592 26 Interest expense (8,400) 17 (10,375) 21 (14,144) 29 (15,749) 33

Proﬁt before taxation 163,002 14 376,951 34 114,975 10 465,476 42 Taxation (51,327) 24 (69,022) 32 (24,354) 11 (71,959) 33

Proﬁt for the ﬁnancial year 111,675 12 307,929 34 90,621 10 393,517 44

Attributable to: Owners of the parent 111,060 12 300,174 34 89,111 10 389,573 44 Non-controlling interests 615 4 7,755 56 1,510 11 3,944 29

111,675 12 307,929 34 90,621 10 393,517 44

Earnings per share (sen) Basic 3.43 9.27 2.75 12.03 Diluted 3.43 9.27 2.75 12.03

PROFIT BEFORE INTEREST AND TAXATION ON SEGMENTAL BASIS Property development 139,209 23 231,899 38 99,789 17 135,541 22 Property investment 15,967 3 110,165 24 17,537 4 322,206 69 Leisure and hospitality (366) (1) 25,544 94 1,012 4 871 3 Others 6,887 20 11,002 33 2,620 8 13,015 39

Segment results 161,697 14 378,610 33 120,958 11 471,633 42 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 011

In RM’000 unless 30 September 31 December 31 March 30 June otherwise stated 2013 % 2013 % 2014 % 2014 %

SEGMENTAL REVENUE AND OPERATING PROFIT Segment Revenue Property development 245,718 20 345,964 28 303,467 24 348,327 28 Property investment 24,034 23 23,775 23 29,047 28 28,038 26 Leisure and hospitality 1,270 2 11,063 19 22,710 39 23,274 40 Others 9,587 20 14,400 30 6,241 13 17,530 37

280,609 19 395,202 27 361,465 25 417,169 29

Segment Results Property development 139,209 23 231,899 38 99,789 17 135,541 22 Property investment 15,967 3 110,165 24 17,537 4 322,206 69 Leisure and hospitality (366) (1) 25,544 94 1,012 4 871 3 Others 6,887 20 11,002 33 2,620 8 13,015 39

161,697 14 378,610 33 120,958 11 471,633 42

FINANCIAL CALENDAR FINANCIAL YEAR END 30 JUNE 2014

ANNOUNCEMENT OF RESULTS PAYMENT OF DIVIDEND 1st Quarter 8 January 2014 1st Interim 25 August 2014 2nd Quarter 25 February 2014 Declaration 30 September 2014 3rd Quarter 23 May 2014 Book Closure 29 October 2014 4th Quarter 25 August 2014 Payment

Notice of Annual General Meeting 3 October 2014 Annual General Meeting 27 October 2014 012 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

MANAGEMENT’S DISCUSSION AND ANALYSIS Group Business Review – Overview

IOI Properties Group Berhad (“IOIPG”) is an established community developer well-known for its self-contained suburban townships and a reputable track record spanning more than two decades in the property industry.

Apart from building townships, the group IOIPG’s revenue from the sale of As one of the largest property developers in has also widened its scope to include development properties has been Malaysia, IOIPG has three core businesses, standalone mid-to-high end commercial increasingly supplemented with recurring namely property development, property and residential property developments rental income from its investment properties investment, and leisure and hospitality. situated at prime locations, or within which comprise prime commercial retail Apart from Malaysia, the Group also has mature townships both locally and and office complexes that were built as operations in Singapore and Xiamen, the abroad, which it deems as its “niche part of its township developments in People’s Republic of China (“PRC”). developments”. Such an expansion of Puchong; IOI Resort City, Putrajaya; and development spectrum enables the Group Southern Johor. As these townships For FY2014, property development activities to tap on wider market segments and continue to mature and thrive, the Group’s contributed 82% of the overall Group’s broaden its revenue base whilst further investment portfolio will see a marked operating profit after excluding one off enhancing its profile and resilience to the enhancement from the development of gain from acquisition of subsidiaries of economic cycle. more up-market properties, and higher RM197.97 million and fair value (“FV”) rental yields. gain on investment properties of RM305.31 million, with the balance 18% attributed to property investment, leisure and hospitality and other operations.

IOI Palm City is IOIPG’s second mega project in Xiamen, PRC. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 013

IOI City Mall is poised to become southern Klang Valley’s most popular shopping destination.

GROUP FINANCIAL PERFORMANCE Property investment, leisure and hospitality, OVERVIEW and others segments contributed to the remaining 15% of the Group’s revenue. Despite the challenging property market, revenue for FY2014 was at a record high The Group posted a profit before tax of RM1,454.45 million, which is 10% of RM1,120.40 million for FY2014 as higher than FY2013 (on pro forma basis). compared to its profit before tax of RM904.76 million in FY2013 (on pro The increase in revenue was mainly forma basis). The increase in profit attributable to IOIPG’s property before tax of RM215.64 million of which development segment which registered RM134.26 million is the development an increase of RM152.28 million, to profit came on stream from its RM1,243.48 million, which amounted to investments in Xiamen, PRC, and the 85% of the total revenue of the Group. remaining from enhanced performance of our developments in Johor and Notably, IOIPG’s joint-venture projects, the Klang Valley. Also contributing namely Cityscape @ Farrer Park in to the profit were the one off gain Singapore recorded a total revenue from the acquisition of subsidiaries of of RM389.25 million for FY2014 RM197.97 million and FV gain (as compared to the total revenue of on investment properties of RM396.97 million in FY2013), which was RM305.31 million. not included in the Group’s consolidated revenue.

The strategically-located Cityscape @ Farrer Park in Singapore is an epitome of contemporary living at its inest. PROPERTY DEVELOPMENT

CREATING TOWNSHIPS OF EXCELLENCE, WE NURTURE QUALITY LIFESTYLES It took more than two decades of experience, expertise and insight to nurture the repute that we have today; to successfully develop comprehensive self-contained townships across the nation, and beyond the border. At IOI Properties Group Berhad (“IOIPG”), we do not just build homes, we create avenues for people to shape their dream lifestyles. Amigo Clubhouse in 16 Sierra, Puchong South. California Street in Bandar Puteri Bangi.

The Tic-Tac-Toe garden in 16 Sierra, Puchong South. 016 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

MANAGEMENT’S DISCUSSION AND ANALYSIS Group Business Review – Property Development

With a strong repute as a developer of self-contained suburban townships, IOIPG has spent the last two decades diligently developing residential, commercial, and industrial properties, both locally and abroad. In line with its vision to become a leading corporation in its core businesses, the Group aims to continue leveraging on its strength and proven track record to leave its esteemed mark at high growth corridors within Malaysia and in surrounding nations.

From the Group’s landbank, the following main development corridors have been identiﬁed:

1. Klang Valley, covering development areas in Bandar Puchong Jaya; Bandar Puteri Puchong; Bandar Puteri Bangi; Bandar Puteri Warisan, Sepang; IOI Resort City and 16 Sierra.

2. Southern Region Corridor in Johor.

3. Northern Region Corridor in Penang.

4. Bandar IOI, Bahau in Negeri Sembilan.

5. IOI City in Ayer Keroh, Melaka. Bandar Puteri Bangi is IOIPG’s latest township development in Klang Valley.

Since its inception as a private limited IOIPG has built tastefully-designed company, IOIPG has grown by leaps and and conscientiously-planned properties bounds to reach its present stature as and created a name for itself as a one of the leading property developers responsible and far-sighted developer in the country. Over the years, IOIPG with a total landbank of approximately has successfully developed several 10,000 acres. Its estimated total gross comprehensive self-contained townships development value (“GDV”) over the such as Bandar Puteri Puchong; Bandar next three (3) years is approximately Puchong Jaya; IOI Resort City, Putrajaya; RM12.0 billion for its operations in 16 Sierra, Puchong South; Bandar Putra Malaysia, approximately SGD3.0 billion Segamat and Bandar Putra Kulai. In order for Singapore and RMB3.3 billion for PRC. to realise its future growth and expansion plans, the Group aims to continue emulating this successful development The tastefully-designed homes of Bandar IOI, Bahau formula of developing comprehensive perfectly complement the ecologically-balanced concept of the township. self-contained townships at high growth corridors. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 017

OPERATIONS REVIEW

Property development continues to be the main driver of operating proﬁts for the Group, having recorded 85% of the total revenue of RM1,243.48 million in FY2014.

The Group’s development projects in Johor contributed 38% of its operating proﬁts while projects in the Klang Valley contributed 35%, followed by 22% from its overseas development project

Skyz Residence in Bandar Puchong Jaya promises unobstructed views of the Puchong in Xiamen, PRC, with the remaining 5% from Penang and skyline from all its units. Negeri Sembilan.

As at 30 June 2014, the Group’s ongoing property development projects (excluding investment-based development projects) and the status of their development, are as follows:

ORIGINAL YEAR OF DEVELOPMENT DEVELOPMENT’S LAND SIZE ESTIMATED PROJECT COMMENCEMENT (ACRES) STATUS GROSS VALUE

Bandar Puchong Jaya, Selangor 1990 930 Approaching RM4.2 billion completion IOI Resort City, Putrajaya 1995 91 Ongoing RM0.8 billion Bandar Putra Kulai, Johor 1995 5,680 Ongoing RM9.1 billion Bandar Putra Segamat, Johor 1995 489 Ongoing RM0.7 billion Bandar Puteri Puchong, Selangor 2000 930 Ongoing RM11.7 billion Desaria, Sungai Ara, Penang 2001 23 Ongoing RM0.7 billion Taman Lagenda Putra, Kulai, Johor 2006 225 Ongoing RM0.6 billion Taman Kempas Utama, Johor Bahru, Johor 2007 294 Ongoing RM3.1 billion 16 Sierra, Puchong South, Selangor 2008 535 Ongoing RM6.8 billion Seascape @ Sentosa Cove, Singapore 2008 4 Completed SGD1.1 billion Teluk Kumbar, Barat Daya, Penang 2009 3 Ongoing RM0.1 billion Cape Royale @ Sentosa Cove, Singapore 2010 5 Completed SGD2.0 billion Cityscape @ Farrer Park, Singapore 2011 2 Ongoing SGD0.4 billion South Beach, Beach Road, Singapore 2011 9 Ongoing SGD1.0 billion The Platino, Johor Bahru, Johor 2012 4 Ongoing RM0.5 billion The Trilinq @ Jalan Lempeng, Singapore 2013 6 Ongoing SGD1.0 billion IOI Park Bay, Xiamen, PRC 2012 8 Ongoing RMB1.8 billion IOI Palm City, Xiamen, PRC 2014 21 Ongoing RMB2.8 billion Bandar IOI, Bahau 2014 334 Ongoing RM1.2 billion Bandar Puteri Bangi 2014 309 Ongoing RM4.8 billion Bandar Puteri Warisan, Sepang 2014 202 Ongoing RM1.3 billion 018 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

MANAGEMENT’S DISCUSSION AND ANALYSIS (Cont’d) Group Business Review – Property Development

The table below sets forth key information with respect to the performance of IOIPG’s property development business excluding joint ventures:

2014 2013* 2012*

Units of property sold 2,667 2,485 1,406 Total sales (RM’000) 1,966,806 1,703,979 851,007 Revenue (RM’000) 1,243,476 1,091,193 836,820 Operating proﬁt (RM’000) 462,630 542,908 430,055

The Group sold a total of 2,667 units of properties with total sales value of RM1,966.81 million in FY2014, an increase of 182 units worth RM262.83 million as compared to FY2013.

Property sales by location are summarised as follows:

SALES VALUE (RM’000) UNITS PROJECT 2014 2013* 2014 2013*

IOI Park Bay, Xiamen, PRC 660,625 – 618 – The Trilinq @ Jalan Lempeng, Singapore 26,805 354,345 8 111 Bandar Puchong Jaya, Selangor 82,006 335,592 110 540 Bandar Putra Kulai, Johor 310,139 230,729 674 573 Taman Kempas Utama, Johor 363,899 196,398 640 331 Bandar Puteri Puchong, Selangor 104,926 164,576 58 134 16 Sierra, Puchong South, Selangor 249,662 130,009 317 175 Taman Lagenda Putra, Kulai, Johor 42,478 79,203 73 179 IOI Resort City, Putrajaya 10,670 76,372 12 117 The Platino, Johor 19,596 71,877 37 143 Bandar Putra Segamat, Johor 14,778 32,657 55 131 Bandar IOI, Bahau, Negeri Sembilan 66,879 – 57 – Others 14,343 32,221 8 51

Total 1,966,806 1,703,979 2,667 2,485

During FY2014, the Group provided quality high-rise properties to the middle income group apart from the traditional landed homes to both the local and overseas markets. The sales mix recorded for unit price below RM750,000 excluding properties sale in Xiamen, PRC and Singapore was 52% of the Group’s total sales value.

The property sales mix by price range is as follows:

2014 2013* PRICE RANGE (RM million) % (RM million) %

Below RM250,000 33,513 2 88,545 5 Between RM250,000 and RM500,000 356,824 18 283,547 17 Between RM500,000 and RM750,000 272,026 14 511,827 30 Between RM750,000 and RM1,000,000 206,673 11 207,318 12 Between RM1,000,000 and RM1,500,000 824,238 42 30,013 2 Between RM1,500,000 and RM2,000,000 48,138 2 43,846 3 Above RM2,000,000 225,394 11 538,883 31

Total 1,966,806 100 1,703,979 100

IOI Danga Bay in Iskandar Malaysia is a hot favourite for its easy accessibility from most parts of Johor Bahru. Homes in 16 Sierra, Puchong South exude sheer style and luxury, and offer superior functional comfort.

For FY2014, the Group exhibited marked are not expected to affect the sustainable IOIPG’s The Trilinq @ Jalan Lempeng, improvement in its performance which growth of the property sector on a long- which comprises three blocks of 36-storey was evident by its posting of revenue of term basis. residential towers, caters to mid-range RM1,243.48 million, which is 14% higher home owners or upgraders from Housing than FY2013 (on pro forma basis). Such In Klang Valley, the prospect for the Development Board (“HDB”) flats. a significantly strong performance was Group’s development in growth areas enabled by the achievement of higher such as Puchong, South Puchong and PRC sales and the sustenance of steady Bangi are expected to remain positive. In PRC, the demand and prices of progress of work of the ongoing projects In Johor too, sentiments in the property residential properties are expected to undertaken by the Group in Malaysia. development industry remain positive, influenced by the high potential of the remain stable in high growth cities On the international front, particularly Iskandar Malaysia project, which stands such as Xiamen. The launch of two in Xiamen, PRC during the year under to enhance Johor’s prospect as a high consecutive successful phases in Xiamen review, the Group has successfully growth area. during FY2014 is expected to continue to launched two phases of its IOI Park Bay contribute positively to the Group’s results project with 97% sold out, generating Demand for residential properties priced for its future launches. total sales value of RMB1,278.25 million. below RM1.0 million at growth areas remains strong. At the same time, many * IOIPG’s Prospectus dated 26 December 2013 property developers are focusing on OUTLOOK & PROSPECTS mid-market residential and affordable homes due to strong interests in these Malaysia segments. IOIPG is no exception and is Following the announcement of several adopting similar strategies. tightening measures on the property Singapore sector in the Malaysia Budget 2014, and other fiscal policies such as the lower In Singapore, with cooling measures loan-to-value (“LTV”) ratio as well as aimed at the residential subsector, financing facilities related to Developers’ especially in the high-end segment, the Interest-Bearing Scheme (“DIBS”), there lower property tax rates and prospect of appears to be an impact on the property superior marginal returns of commercial market sentiment which is evidenced properties have made them the alternative by a slower overall take-up rate at new investment. property launches, especially for the high-end property segment. While the sale of residential properties is expected to moderate between 3.0% However, as these regulatory measures and 4.0%, sale of commercial properties are meant to curb speculation and not is likely to increase between 3.0% and restrict genuine demand, these measures 7.0%.* The Trilinq’s competitive edge includes its magniicient façade, proximity to town centre and easy accessibility to amenities. PROPERTY INVESTMENT

ANCHORED ON CORE STRENGTHS, WE DELIVER GREATER VALUE To complement our township developments, we build shopping malls, retail complexes and purpose-built oice buildings which we own and manage. Our property investment portfolio is extensive, and continues to grow in size and value as we expand our horizons to build more such properties in the coming years. IOI Boulevard in Bandar Puchong Jaya. Puchong Financial Corporate Centre in Bandar Puteri Puchong.

South Beach at Beach Road in Singapore. 022 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

MANAGEMENT’S DISCUSSION AND ANALYSIS Group Business Review – Property Investment

IOIPG has a successful track record of managing prime assets which it develops and owns, a fact which perfectly complements its philosophy of offering self-contained townships that aptly meet community lifestyle and business needs. Retail and office spaces that IOIPG has introduced to the local market have been repeatedly commended for their superior value and quality, thus spurring the Group to expand its investment portfolio to also include the global market.

Some of IOIPG’s major investment properties are:

a) IOI Mall Puchong, being the largest contributor to the Group’s property investment portfolio. This shopping centre has more than 353 retail shop lots with a total net lettable area of approximately 861,000 sq. ft.; b) Four blocks of 12-storey to 21-storey purpose-built office buildings in Puchong Financial Corporate Centre (“PFCC”) with total net lettable area of approximately 874,000 sq. ft.; c) IOI Mall Kulai in Johor which has more than 258 retail shop lots with a total net lettable area of approximately 239,000 sq. ft.; d) One IOI Square and Two IOI Square located in IOI Resort City, Putrajaya which comprise two 12-storey IOI City Mall will begin operations by the end of 2014, purpose-built office towers with and is set to become a world-class shopping destination in southern Klang Valley. approximately 404,000 sq. ft. of IOIPG’s prime assets in Malaysia, which net lettable area; and complement its existing township developments, supplement the group’s e) 104 units of office and retail lots revenue with stable and recurring rental located at IOI Boulevard with a total income. The Group’s existing property net lettable area of approximately investment portfolio as at 30 June 282,000 sq. ft. 2014 has approximately a total 3.14 IOIPG has realised optimal gains in capital million sq. ft. of lettable space, of which appreciation over the medium-term from approximately 1.33 million sq. ft. is retail its investments of purpose-built office and space, 1.50 million sq. ft. is office space, commercial/retail space developed by the and the balance encompassing, amongst Group. At the same time, this segment others, residential properties. presents the Group with an avenue to benefit from sustained income streams. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 023

southern Klang Valley. Infrastructure The South Beach project, a joint venture projects such as the Mass Rapid Transit with City Development Limited, one in Klang Valley, and new highways will of Singapore’s renowned developers, play key roles in the performance of the is expected to have its office towers property market in the region. completed at the beginning of 2015. The rest of the components, namely the Rental yields of residential properties in 654-room hotel, premium retail space and GKL/KV are expected to register 3.0% luxury residential units will be completed to 4.0% annually over the next three in the second quarter of 2015. Jones years, while rental yields of commercial Lang LaSalle is the appointed leasing properties are expected to grow about and marketing agent for the project’s 5.0% over the same forecast period. In the office and retail space which has a southern state of Johor, rental yields are total net lettable area of approximately estimated to grow from 4.0% to 5.0% for 640,000 sq. ft. The strategically-located South Beach project includes non-landed residential properties, while among others, premium ofices, luxury residences, and non-landed properties are expected to PRC a designer hotel. grow by approximately 2.0% annually from 2013 to 2015.* Rental yields in Xiamen are also expected OPERATIONS REVIEW to continue to grow, with demand from Demand for quality retail properties in consumers shifting from purchase to During FY2014, retail space remained the Klang Valley continues to be strong rental of flats due to the government’s the key contributor, accounting for 73% for the next few years. For IOIPG, with tightening measures on residential of total revenue of this segment by the completion and opening of IOI City properties, as well as the growing recording revenue and operating profit of Mall at the end of 2014, approximately demand for commercial properties. Rental RM104.89 million and RM66.58 million 1.50 million sq. ft. of net lettable area in yields of both residential and commercial respectively. The Group has registered retail space will be added to its existing properties are expected to grow 2.0% to higher FV gain on investment properties investment property portfolio. 5.0% annually from 2013 to 2015.* of RM305.31 million compared to RM162.57 million in FY2013 (on pro forma Singapore IOI Palm City, an integrated development basis). Average occupancy for FY2014 which comprises a shopping mall, boutique The property investment market in was 74%, just as it was for FY2013. offices, a five-star hotel and luxury Singapore retains its cautious outlook. residences such as villas, townhouses and The Group will continue to build its Rental yields of residential properties may high-end condominiums, is expected to portfolio of retail and office assets as a grow between 2.0% to 4.0% annually for be completed in 2018. Upon completion, means of recurring income. The total net the next three to five years, barring further it will add an approximately a total net lettable sq. ft. will be further boosted by government interventions. Growth of lettable area of 1.50 million sq. ft. of retail the completion of IOI City Mall in IOI Resort rental yields of commercial properties is and office space to IOIPG’s investment City, Putrajaya which adds an additional more optimistic with an estimated growth portfolio. 1.50 million sq. ft. of net lettable area of rate of 5.0% to 7.0%.* retail space and approximately 900,000 * IOIPG’s Prospectus dated 26 December 2013 sq. ft. of office space to its portfolio.

One of the key attractions of IOI Palm City in Xiamen is its grand shopping mall. OUTLOOK & PROSPECTS

Malaysia

In the arena of property investments, rental yields for residential and commercial properties in Malaysia are expected to reach 4.0% to 5.0% from 2013 to 2015. On the whole, Greater Kuala Lumpur/Klang Valley (“GKL/KV”) is undergoing an expansionary phase in terms of property investment prospects, especially in focal development areas such as Sungai Buloh, Shah Alam, Subang Jaya, Cyberjaya, Puchong, and LEISURE & HOSPITALITY

FULFILLING ASPIRATIONS, WE ARE GROWING A GLOBAL REPUTE ACROSS BORDERS When it comes to building and managing hotels and golf clubs, the demands we make of our expertise and capacities extend beyond the ordinary. With two successful hotels and two golf courses already sprucing up our portfolio, we are now going that extra mile to build more luxury hotels in Malaysia, Singapore and Xiamen, PRC. The award-winning Palm Garden Golf Club in The ﬁve-star Putrajaya Marriott Hotel in IOI Resort City, Putrajaya. IOI Resort City, Putrajaya.

An artist’s impression of a ﬁve-star hotel and a shopping mall in IOI Palm City, Xiamen, PRC. 026 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

MANAGEMENT’S DISCUSSION AND ANALYSIS Group Business Review – Leisure & Hospitality

IOIPG’s hotels, resorts and golf courses which are located in the Klang Valley and Johor are well-known in the leisure and hospitality circle for their unique features and strong brand recognition. Tapping global opportunities available in the leisure and hospitality industry, the Group has in its pipeline new hotel projects which are expected to near completion in the coming years, thus taking its leisure and hospitality portfolio to a whole new level.

IOIPG’s core business of property c) Palm Garden Golf Club (“PGGC”), Garden Hotel as well as the two golf development is supported by its cachet of which received the ParGolf Awards courses in Putrajaya and Johor serves as complementary lifestyle elements. It builds 2012 for Best New Golf Course the major contributor to the leisure and hotels as part of its property development in Malaysia, and the Best Golf hospitality segment for FY2014. projects which are then operated under Development Malaysia 2013-2014 its leisure and hospitality portfolio. IOIPG’s award from Asia Pacific Property The revenue for IOIPG’s leisure and hotels, resorts and golf courses in the Awards, Virgin Atlantic, is also located hospitality business is heavily dependent Klang Valley and Johor are as follows: within IOI Resort City, Putrajaya; and on the inflow of guests, which the Group perceives to be the most important d) Palm Villa Golf & Country Resort, a) Putrajaya Marriott Hotel, a five- operational performance indicator. Due to a 27-hole golf course which is star hotel with 380 guestrooms, the competitive nature of the leisure and located in the township of Bandar 73 executive rooms and 35 exclusive hospitality industry in Malaysia, pricing of Putra Kulai, Johor. suites. The hotel, located within IOI room rates, golf course-related fees and Resort City, Putrajaya, was awarded Revenue generated from the Group’s other activities have a significant and direct the Best Hotel Development award leisure and hospitality activities are from impact on the inflow of guests patronising in 2004, whilst the hotel’s restaurants hotel guest and function room rentals, the Group’s hotels and golf clubs. have received several awards in 2007, golf course-related fees, food and Additionally, the consistent and effective 2008, 2009 and 2013; beverage (“F&B”), merchandise sales maintenance of the golf courses and b) Palm Garden Hotel, a four-star hotel and other related income from hotel and hotel rooms, and the introduction of new with 151 guest rooms located in golf course operations. The revenue from attractions and promotional offers are IOI Resort City, Putrajaya; Putrajaya Marriott Hotel and the Palm also seen as contributory factors towards sustaining the continuous growth of the number of guests frequenting the hotels and the golf clubs.

Unlike the property development and property investment business segments, IOIPG’s leisure and hospitality business follows a seasonal pattern which is largely dependent on festive periods, school holidays and public holidays. As such, the need to sustain a continuous growth and expansion of the Group’s stake in the industry is crucial in order for IOIPG to chart its course to become one of the nation’s leading players in the leisure and hospitality industry.

Palm Garden Golf Club is well-known for its undulating parkland environment. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 027

IOIPG’s two upcoming hotels, the four- star Four Points by Sheraton Puchong and the ﬁve-star Le Meridien Putrajaya, will soon be added to IOIPG’s leisure and hospitality portfolio, with the former expecting completion in the fourth quarter of 2014, and the latter in 2016.

The completion of these two hotels, and the two new upcoming luxury hotels in Singapore and Xiamen, PRC are expected to further catalyse IOIPG’s robust expansion into the local and global leisure and hospitality industry, and in the process, help to boost the Group’s overall business returns.

OPERATIONS REVIEW Four Points by Sheraton Puchong is an upcoming addition to IOIPG’s leisure and hospitality portfolio. IOIPG’s leisure and hospitality segment has recorded revenue of RM58.32 million in FY2014. government which duly recognises the Additionally, the reduction of usage importance of tourism to the overall of hotel services among agencies has The main contributors for this segment are economy. The government has stated affected the overall revenue from Putrajaya Marriott Hotel and Palm Garden that, by the year 2020, it aims to attract this sector which is IOIPG’s closest Hotel. The revenue contribution from the 36 million visitors per year, and it appears source market. As such, IOIPG has two aforesaid hotels accounts for 76% of that the country is well on track to meet re-aligned its focus to a different market the total revenue from this segment. The its ambitious target. of tourist arrivals with the opening of IOI average room occupancy is approximately City Mall at the end of 2014. in the range of 54% to 56%. Long-term growth in tourism will however, necessitate the expansion and Being one of the largest shopping OUTLOOK & PROSPECTS modernisation of the country’s transport destinations in Malaysia, the feasibility of network, particularly the domestic air IOI City Mall as an avenue for tourism was The Malaysia tourism report looks at travel connections across the South China identified through IOIPG’s participation a range of key market indicators in this Sea. Malaysia is increasingly becoming at the Asia Tourism Fair in Kuching rapidly expanding tourist destination a hub for low-cost air travel in the Asia in February 2014. The strategy is to located in the booming Asia Pacific Pacific region, and improvement of collaborate with travel agents to attract a region. With the number of inbound the country’s air transport facilities will steady stream of visitors from the Middle and outbound travellers set to increase, enable Malaysia to take advantage of the East and Asia to visit Putrajaya and the IOIPG expects to see a healthy growth in potential for growth in regional travel, as upcoming mall. the hotel sector with solid gains in overall well as allow it to tap into potential new tourism industry value by 2018. markets. Efforts will also be made by IOIPG to sustain the inflow of tourists and level of Tourist arrivals are expected to increase The business outlook of IOIPG’s hotel sales by capitalising on the superiority of by more than 5% per year, and by 2018, business takes on a challenging phase its hotel and dining services which sets the number of annual arrivals to Malaysia as new hotels emerge within the vicinity IOIPG’s hotels apart from its competitors. is expected to reach 34.4 million, a of Putrajaya, offering newer and more The key to optimising profitability gains healthy increase from the 2013 figure modern products at attractive rates, will rest on how effectively the hotel of 26.3 million. Growth in the tourism causing existing hotels to compete and management maintains control over the market is well supported by the Malaysian engage in price wars. costs which they have influence over, and on how they manage the rental yields. 028 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

SUSTAINABILITY AND CORPORATE RESPONSIBILITY

In tandem with Malaysia’s move towards achieving the fully developed nation status in 2020, an intense adoption of sustainable and social responsibility practices is foreseen. Playing its part as a discerning and responsible property player, IOI Properties Group Berhad (“IOIPG”) has reinforced its sustainability and corporate responsibility (“CR”) initiatives to complement the government’s call for responsible practices towards nation building. It is IOIPG’s way of giving back to the environment, society, and eventually, the nation, while it continues to embark on its journey as a leading property developer.

CHAMPIONING SUSTAINABILITY of its communities, and cultivating a pro-active and conducive working Sustainable Developments environment to achieve its quality policy.

IOIPG has always adopted responsible In line with its sustainability policy, practices, having conscientiously infused IOIPG goes to great lengths to adopt effective sustainable measures into its design features which harness natural projects in order to constantly enhance light, encourage cross and natural value creation for its customers. It ventilation, reduce dependency on achieves this by upholding its brand mechanical systems which consume promise of being a reliable and quality energy, incorporate energy management community developer, incorporating systems into its building automation design principles and adopting work systems to help reduce overall energy practices that place considerable consumption and carbon footprints importance on energy conservation and and maximise landscaping on available the environment, promoting activities spaces in its residential and commercial that contribute to the safety and vibrancy developments.

The 12.8-acre Puteri Hills development incorporates a 12m x 300m landscape deck with theme gardens and lush landscaping.

Extensive use of glass facade at IOI City Mall allows more daylight into the mall, thus reducing electricity consumption. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 029

To minimise impact on the existing environment, 85% of trees from the old site of Palm Garden Golf Club were transplanted onto the new site.

The following sustainability principles and Commercial High-Rise Buildings the old site were transplanted to the new features are incorporated into IOIPG’s site and the trees achieved a remarkable property developments: •฀ Green฀Building฀Index฀(“GBI”)฀or฀Green฀ survival rate of more than 95%. Apart Mark Certiﬁcation. from that, more than 80% of the planting Residential Buildings •฀ Orientation฀ of฀ buildings฀ towards material requirements for the course were North-South direction to reduce heat sourced, propagated and/or transplanted •฀ Cross฀ ventilation฀ designs฀ where฀ and sun glare. at site. The onsite propagation helped to applicable. •฀ Energy฀ management฀ modules฀ in฀ its฀ reduce fuel consumption and air pollution •฀ Natural฀ ventilation฀ for฀ all฀ bathrooms฀ building automation system. which would otherwise have resulted without the use of exhaust fans through from the need to buy and transport these •฀ Motion฀sensored฀lights฀for฀staircases. strategically-placed windows. materials over long distances. •฀ Open฀ concept฀ with฀ high฀ ceilings฀ •฀ Photovoltaic฀cells฀at฀the฀rooftop฀where฀ to enhance natural lighting and appropriate. Sustainable Work Culture ventilation. •฀ Installation฀of฀water฀saving฀cisterns. IOIPG’s sustainability initiatives are not •฀ Orientation฀ of฀ buildings฀ towards฀ •฀ Low฀VOC฀paint. merely limited to tangible outcomes North-South direction to reduce heat •฀ Sensor฀taps฀for฀public฀toilets. such as its signature building features. Its and sun glare. commitment to sustainability encapsulates •฀ Vertical฀ plantings฀ to฀ enhance฀ beauty฀ Other than incorporating environmentally- almost all of its work practices, so much aesthetics and reduce carbon neutral design principles and ﬁttings in so that it now exists as part of its work footprints. IOIPG’s buildings, the same considerations culture. From a simple commitment such are given to projects which are mainly •฀ Solar฀water฀heating฀systems. as recycling all used papers utilised during non-building based. For example, in work processes, right up to ensuring that •฀ Rainwater฀ harvesting฀ systems฀ for฀ the course of refurbishing IOIPG’s Palm all drawings presented at meetings are irrigation purposes. Garden Golf Club (“PGGC”), rigorous in soft copies and that only one set of •฀ Installation฀of฀water฀saving฀cisterns. considerations were given to minimise printed drawings is shared at workplace •฀ Low฀ Volatile฀ Organic฀ Compound฀ impact to the existing environment. More by all, IOIPG’s pledge to sustainability (“VOC”) paint. than 85% of the trees (or 2,191 trees) at clearly shines through. 030 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

SUSTAINABILITY AND CORPORATE RESPONSIBILITY (Cont’d)

Eco gotong-royong is regularly organised in IOIPG’s townships to foster cleanliness of environment among residents.

SERVING COMMUNITY (b) Student Adoption Programme

Education The Student Adoption Programme (“SAP”) was launched in 2008 by the IOIPG believes that education is an then Deputy Minister of Education integral component in empowering and YB Dr Wee Ka Siong to provide enlightening the young to become leaders underprivileged children with equal of tomorrow. Its community outreach access to good basic education as programmes which centre on education a platform for a brighter future. The and human capital development, and adopted students receive ﬁnancial corporate philanthropic initiatives are assistance and school bags from mainly undertaken by its charity arm, the Yayasan TSLSC until they complete Yayasan Tan Sri Lee Shin Cheng (“Yayasan primary or secondary education. Since TSLSC”). To date, Yayasan TSLSC has its inception, the SAP has beneﬁted contributed over RM29,000,000 to more than 900 students from over various schools, hospitals, welfare homes 200 schools in Peninsular Malaysia and Sabah. To date, the total sponsorship and charitable bodies and has given amounts to RM2.5 million. Visits to charity homes form part of IOIPG’s scholarships and grants to hundreds of CR activities. schools and university students. (c) School Adoption Programme

(a) Scholarship Awards The School Adoption Programme was launched in 2007 to create a Scholarships and career opportunities conducive learning environment for are awarded to academically students from deprived schools in outstanding students pursuing rural areas. Financial assistance is full-time undergraduate studies. provided to these adopted schools Yayasan TSLSC deems it as a great to upgrade their facilities by building investment to support qualiﬁed new classrooms, halls, libraries, Malaysian youths and help build the perimeter fences, and IT and sports nation’s human capital through the facilities in order to improve the scholarships. To date, Yayasan TSLSC learning environment. To date, six has granted 200 students more than adopted primary and secondary RM4,150,000 worth of scholarships. schools in Sabah have been adopted under this scheme. From time to time, ﬁnancial assistance is extended to upgrade their school buildings. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 031

(d) Young Achievers’ Awards employees to volunteer their time Customer Survey, while its community and actively participate in various engagement efforts include the Reach The Young Achievers’ Awards CR activities organised under Yayasan Out community newsletter, myioi.com (“YAA”) was introduced by Yayasan TSLSC. Some of the activities which community website, the IOI Privilege Card TSLSC in 1999 to invigorate and are highlighted in the “Corporate and the “Go Green” campaign. motivate young students to strive Responsibility” section include bringing for excellence in their studies. Cash cheer to residents at old folks homes Besides organising community events, awards, plaques and certiﬁcates of and organising outdoor teambuilding IOIPG also supports activities that are achievement are given out annually to sessions for children from orphanages. organised by the Residents Association reward bright students from primary (“RA”) to create sustainable communities. to upper secondary levels who excel Productive efforts have also been made academically, possess high leadership to engage with customers via IOIPG’s qualities and who are active in their Customer Relations Unit (“CRU”) which CONCLUSION extra-curricular activities. More than builds sustainable relationships between RM464,000 worth of cash prizes the developer and the community IOIPG integrates sustainability and have been given to young achievers and takes care of customers’ needs. social well-being into every aspect of its since its inception. In addition to ensuring that customers operations and work culture. Its countless receive the “IOI Branded Customer sustainability and CR efforts reﬂect its Community Outreach Experience” through enhanced customer commitment to uphold its Vision and Core service quality, some of its initiatives for Values. As IOIPG moves towards greater Besides Human Capital Development expansion, it will continuously strive to programmes, IOIPG also encourages improving customer satisfaction include broaden and deepen its sustainability and and provides ample opportunities for the IOI Customer Service Champions and CR efforts.

South Beach’s large wave-shaped canopy that links the heritage buildings with the two high-rise towers is designed to capitalise on the natural tropical climate of Singapore. 032 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

CORPORATE RESPONSIBILITY Social Contributions

2013 28 July IOI Mall Kulai hosted the “7th Pertandingan Memasak Bubur Lambuk Antara Surau & Masjid Daerah Kulaijaya” and the funds raised were used to celebrate the Raya festivity with orphans 7 July in August. More than 3,500 runners participated in the 9th Putra Charity Run 2013 organised by IOI Properties Berhad (“IOIP”) in Johor Bahru. Besides fostering community spirit among the residents and promoting a healthy lifestyle, the event raised RM68,000 for the Kiwanis Down Syndrome Foundation (Kulai Centre).

6 September In collaboration with Traxx FM, a local radio station, Palm Garden Hotel held a “Hari Raya Aidilﬁtri and Charity Open House” to 12 July celebrate Ramadan with more than 100 orphans, single mothers Palm Garden Hotel organised a buka puasa event for and senior citizens from Pusat Zakat Selangor, Puchong. 51 orphans from Rumah Pengasih Warga Prihatin, Kajang. In addition to performances by Seri Mahligai Ghazal and hotel staff, the children were given duit raya. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 033

22 October 30 November Putrajaya Marriott Hotel & Spa collaborated with Traxx FM to Yayasan Tan Sri Lee Shin Cheng (“Yayasan TSLSC”) awarded celebrate Deepavali with more than 60 children from Desa Amal RM456,000 to ten scholarship recipients in recognition of their Jireh, Selangor in its “The Lights of Rangoli” charity event. The excellent academic and extra-curricular achievements. children were treated to a sumptuous dinner and received money packets.

1 December IOI Mall Kulai supported the World AIDS Day with several 9 November government and non-governmental organisations joining in the IOIP collaborated with HSBC Bank and Bandar Putera 2 Residents awareness event, which saw the public participating in the Red Committee to organise an “Eco Gotong-Royong” to maintain Ribbon Riding, exhibition and talk, among others. the cleanliness of Bandar Putera 2 township in Klang. Over 300 individuals participated in this event, where IOIP provided plants, shrubs, cleaning tools and meals to ensure its success. 034 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

CORPORATE RESPONSIBILITY (Cont’d) Social Contributions

2013 15 December IOI Mall Kulai organised a high-tea gathering for 30 orphans in conjunction with the Christmas celebration. 9 December IOI Mall Puchong collaborated with non-proﬁt organisation “Community at Heart” in the annual fundraising event called “The Heavenly Gift”. Shoppers chose the charity programmes and less privileged individuals that they wished to support and sponsor accordingly.

2014

20 January Yayasan TSLSC sponsored 403 students from primary and secondary schools under its annual School Adoption Programme, 12 December with contributions amounting to RM338,050. Putrajaya Marriott Hotel & Spa and Palm Garden Hotel shared the season of joy in a Christmas beneﬁt held at Pavilion Kuala Lumpur that saw more than 75 less privileged children enjoying themselves with carolling performances, games and goodie bags. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 035

22 January 13 February Yayasan TSLSC sponsored the “IOI Challenger Award” during Palm Garden Hotel celebrated Chinese New Year with the two-day 2014 Malaysian Intervarsity Leadership Conference 45 senior citizens from Persatuan Rumah Caring Kajang where they (“MILC”) held at Federal Hotel, Kuala Lumpur. enjoyed a Chinese New Year luncheon while being entertained by a lion dance. The senior citizens also received angpows from the hotel.

7 February 29 March Marriott Putrajaya Hotel & Spa treated more than a hundred senior In conjunction with Earth Hour 2014, IOI Mall Kulai and Palm citizens from Little Sisters of the Poor and Persatuan Rumah Caring Garden Hotel commemorated the green initiative by switching off Kajang to a Chinese New Year luncheon, lion dance and wushu non-essential lights from 8:30 pm to 9:30 pm. They also organised performance. The guests also took home an angpow and goodie activities to raise awareness on environmental conservation. bag each. 036 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

CORPORATE RESPONSIBILITY (Cont’d) Social Contributions

2014 7 June In conjunction with World Environment Day 2014, IOI Mall Kulai collaborated with Malaysia-Singapore Vintage Car Gathering to hold an “Environment Care Vintage Car Ride” which saw 19 April 50 vintage cars making its way from the mall to Hutan Bandar 72 members from Persatuan Kanak-Kanak Istimewa Kajang, where 50 Tecoma plants were planted. Selangor (“PKIK”) were taken on a fun outing to IOI Mall Puchong courtesy of Yayasan TSLSC, where they enjoyed playing stage games, a sumptuous lunch and watching “RIO 2” in the cinema.

3 May 8 June 111 students received the Young Achievers’ Awards from Yayasan The 10th Putra Charity Run in Bandar Putra, Kulaijaya attracted TSLSC plus cash prizes, plaques and certiﬁcates worth RM47,150 3,000 participants who raised RM61,000 for Rotary Club Kulai’s in recognition of their excellent results in public examinations and Haemodialysis Centre. Organised by IOIPG in Johor Bahru, the active participation in extra-curricular activities. run themed “Go Green, Love Your Environment” was aimed at bringing the residents closer and promoting a healthy lifestyle. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 037

CORPORATE INFORMATION

BOARD OF DIRECTORS

TAN SRI DATO’ LEE SHIN CHENG Executive Chairman PSM, DPMS, JP

LEE YEOW SENG Chief Executive Ofﬁcer

DATO’ LEE YEOW CHOR Non-Independent Non-Executive Director DSAP

TAN SRI ONG KA TING Senior Independent Non-Executive Director PMN, SPMP, DPMS, DPMP

DATUK TAN KIM LEONG @ TAN CHONG MIN Independent Non-Executive Director PMC, JP

DATUK LEE SAY TSHIN Independent Non-Executive Director DMSM, SDK

DR TAN KIM HEUNG Independent Non-Executive Director

AUDIT AND RISK MANAGEMENT REGISTERED OFFICE AND LEGAL FORM AND DOMICILE COMMITTEE PRINCIPAL PLACE OF BUSINESS Public Limited Liability Company Chairman Two IOI Square Incorporated and Domiciled in Malaysia DATUK TAN KIM LEONG IOI Resort @ TAN CHONG MIN* 62502 Putrajaya STOCK EXCHANGE LISTING PMC, JP Tel +60 3 8947 8888 Fax +60 3 8947 8909 Main Market of Bursa Malaysia DATUK LEE SAY TSHIN* Securities Berhad DMSM, SDK AUDITORS DR TAN KIM HEUNG* WEBSITES (Appointed on 25 August 2014) BDO Chartered Accountants www.ioipropertiesgroup.com * Independent Non-Executive Director 12th Floor, Menara Uni.Asia www.myioi.com 1008, Jalan Sultan Ismail CHARTERED SECRETARY 50250 Kuala Lumpur Tel +60 3 2616 2888 TAN CHOONG KHIANG Fax +60 3 2616 3191 (MAICSA 7018448) REGISTRAR

Tricor Investor Services Sdn Bhd Level 17, The Gardens North Tower Mid Valley City Lingkaran Syed Putra 59200 Kuala Lumpur Tel +60 3 2264 3883 Fax +60 3 2282 1886 038 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

BOARD OF DIRECTORS IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 039

from left to right: • TAN SRI DATO’ LEE SHIN CHENG Executive Chairman • LEE YEOW SENG Chief Executive Officer • DATO’ LEE YEOW CHOR Non-Independent Non-Executive Director • TAN SRI ONG KA TING Senior Independent Non-Executive Director • DR TAN KIM HEUNG Independent Non-Executive Director • DATUK TAN KIM LEONG @ TAN CHONG MIN Independent Non-Executive Director • DATUK LEE SAY TSHIN Independent Non-Executive Director 040 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

PROFILE OF DIRECTORS

TAN SRI DATO’ LEE SHIN CHENG Executive Chairman Malaysian, Age 75

Tan Sri Dato’ Lee Shin Cheng was appointed to the Board on 1 June 2013.

He is also the Executive Chairman and founder of IOI Group. Tan Sri Lee is an entrepreneur with considerable experience in the plantation and property development industries. He is pivotal to the operations of IOI Group, having founded the plantation and property businesses more than 25 years ago. Through his entrepreneurial leadership and stewardship, strategic vision, guidance, wisdom as well as his vast experience, IOI Group has grown in tandem to become one of the leading plantation and property groups in Malaysia.

In recognition of Tan Sri Lee’s immense contribution to the property industry in Malaysia, he was bestowed the singular honour of FIABCI Malaysia Property Man of the Year 2001 Award. In February 2002, Tan Sri Lee was conferred the Honorary Doctorate Degree in Agriculture by Universiti Putra Malaysia in recognition of his contributions to the palm oil industry. In 2006, Tan Sri Lee was conferred the Fellowship of the Incorporated Society of Planters (“FISP”) by Malaysia’s ISP. In October 2008, Tan Sri Lee was conferred Honorary Fellowship of the Malaysian Oil Scientists’ and Technologists’ Association (“MOSTA”) for his outstanding contributions to agriculture, in particular the oleochemical and specialty oils and fats. Tan Sri Lee was also awarded the prestigious Malaysian Palm Oil Association (“MPOA”) Recognition Award 2011 for his outstanding contributions and leadership in the plantation industry. Tan Sri Lee is currently a Council Member of the East Coast Economic Region Development Council (“ECERDC”) for the Government.

As our Executive Chairman, he provides coherent leadership in leading the board of IOI Properties Group Berhad (“IOIPG”) including, effective communication with stakeholders as well as providing entrepreneurial leadership and stewardship in the charting of IOI Properties Group’s future direction. In addition, he also provides guidance, advice and support to senior management.

Tan Sri Lee is also active in providing his advice and guidance to a large number of industry groupings, associations and social organisations. He serves as, among others, the Honorary President of the Associated Chinese Chambers of Commerce and Industry of Malaysia (“ACCCIM”).

Tan Sri Lee is the father of Lee Yeow Seng and Dato’ Lee Yeow Chor.

Tan Sri Lee is deemed in conflict of interest with IOI Properties Group by virtue of his interest in certain privately-owned companies which are also involved in and have similar business as property investment and property development. For certain recurrent related party transactions of a revenue or trading nature which are necessary for day-to-day operations of IOI Properties Group and for which Tan Sri Lee is deemed to be interested is disclosed under the notes to audited financial statements section of the Annual Report, there are no other business arrangements with the Company in which he has personal interest.

He attended all the five (5) Board Meetings held during the financial year ended 30 June 2014. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 041

LEE YEOW SENG Chief Executive Officer Malaysian, Age 36

Lee Yeow Seng was appointed to the Board on 25 February 2013 as Executive Director and was subsequently appointed as Chief Executive Officer on 8 January 2014. As the Chief Executive Officer of IOI Properties Group Berhad (“IOIPG”), he is responsible for overseeing the operations and strategic planning of the Group.

Lee Yeow Seng is a barrister from the Bar of England & Wales by Inner Temple and holds a LLB (Honours) from King’s College London. He has served at the London and Singapore offices of a leading international financial services group for approximately three (3) years. He is also presently a Non-Independent Non-Executive Director of IOI Corporation Berhad.

Lee Yeow Seng is the youngest son of Tan Sri Dato’ Lee Shin Cheng and the brother of Dato’ Lee Yeow Chor.

Lee Yeow Seng is deemed in conflict of interest with IOI Properties Group by virtue of his interest in certain privately-owned companies which are also involved in and have similar business as property investment and property development. For certain recurrent related party transactions of a revenue or trading nature which are necessary for day-to-day operations of IOI Properties Group and for which Lee Yeow Seng is deemed to be interested is disclosed under the notes to audited financial statements section of the Annual Report, there are no other business arrangements with the Company in which he has personal interest.

He attended four (4) out of the five (5) Board Meetings held during the financial year ended 30 June 2014. 042 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

PROFILE OF DIRECTORS (Cont’d)

DATO’ LEE YEOW CHOR Non-Independent Non-Executive Director Malaysian, Age 48

Dato’ Lee Yeow Chor was appointed to the Board as Executive Director on 25 February 2013 and was subsequently re-designated as Non-Independent Non-Executive Director on 18 December 2013.

Dato’ Lee is a barrister from Gray’s Inn, London and holds a LLB (Honours) from King’s College London and a Postgraduate Diploma in Finance and Accounting from London School of Economics. Prior to joining IOI Group as a General Manager in 1994, he served in various capacities in the Attorney General’s Chambers and the Malaysian Judiciary service for approximately four (4) years. His last posting was as a Magistrate.

Dato’ Lee is also presently an Executive Director and Chief Executive Officer of IOI Corporation Berhad (“IOIC”) and is responsible for overseeing the operations of all the IOIC’s core business segments. He is also a Trustee of Yayasan Tan Sri Lee Shin Cheng, the charitable arm of IOI Group.

Dato’ Lee is the Chairman of the Malaysian Palm Oil Council (“MPOC”) and also serves as a Council Member in the Malaysian Palm Oil Association (“MPOA”). He was a Director of the Malaysian Green Technology Corporation from 2011 to 2013 and served on the National Council of the Real Estate and Housing Developers’ Association (“REHDA”) Malaysia including as its Secretary General from 2000 to 2006.

Dato’ Lee is the eldest son of Tan Sri Dato’ Lee Shin Cheng and brother of Lee Yeow Seng.

Dato’ Lee is deemed in conflict of interest with IOI Properties Group by virtue of his interest in certain privately-owned companies which are also involved in and have similar business as property investment and property development. For certain recurrent related party transactions of a revenue or trading nature which are necessary for day-to-day operations of IOI Properties Group and for which Dato’ Lee is deemed to be interested is disclosed under notes to audited financial statements section of the Annual Report, there are no other business arrangements with the Company in which he has personal interest.

He attended all the five (5) Board Meetings held during the financial year ended 30 June 2014. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 043

TAN SRI ONG KA TING Senior Independent Non-Executive Director Malaysian, Age 58

Tan Sri Ong Ka Ting was appointed to the Board on 1 June 2013. He sits as the Chairman of the Nominating and Remuneration Committee and was a member of the Audit and Risk Management Committee until 25 August 2014.

Tan Sri Ong holds a Bachelor of Science (Honours) degree and a Diploma in Education respectively from University of Malaya. He was conferred the Honorary Doctor of Laws Degree by Campbell University in December 2008. He was conferred Guest Professor of Xiamen University since September 2008.

Tan Sri Ong has held various senior appointments in the Malaysian Government Administration from November 1986 until his retirement in March 2008 including the positions of Political Secretary and Deputy Minister for the Ministry of Home Affairs and Minister for the Ministry of Housing and Local Government.

Tan Sri Ong is the Independent Non-Executive Chairman of Taliworks Corporation Berhad (“Taliworks”). He is also the Chairman of both Nomination and Remuneration Committees of Taliworks.

Tan Sri Ong was appointed Deputy Chairman and Trustee of Kuok Foundation from 1 January 2009 to 1 April 2010. He is currently the Trustee of Yayasan Tan Sri Lee Shin Cheng.

Tan Sri Ong has been the Chairman of Malaysia-China Business Council since 23 July 2011. He has also been appointed as “Malaysian Prime Minister’s Special Envoy to the People’s Republic of China“ with ministerial status.

Tan Sri Ong was the President of Malaysian Chinese Association (“MCA”) from 2003 to 2008, Chairman of Tunku Abdul Rahman College Council from June 2004 to September 2011 and Member of Parliament for Pontian, Tanjong Piai and Kulai constituencies in Johor since October 1990 to May 2013.

He attended all the five (5) Board Meetings held during the financial year ended 30 June 2014. 044 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

PROFILE OF DIRECTORS (Cont’d)

DATUK TAN KIM LEONG @ TAN CHONG MIN Independent Non-Executive Director Malaysian, Age 75

Datuk Tan Kim Leong @ Tan Chong Min was appointed to the Board on 1 June 2013. He sits as the Chairman of the Audit and Risk Management Committee and is a member of the Nominating and Remuneration Committee.

Datuk Tan is a Fellow member of the Institute of Chartered Accountants, Australia and the Malaysian Institute of Chartered Secretaries and Administrators (“MAICSA”). He holds professional memberships in the Malaysian Institute of Accountants (“MIA”) and the Malaysian Institute of Certified Public Accountants (“MICPA”).

He sits on the Board of Gul Technologies Singapore Ltd, Amoy Canning Corporation (Malaya) Berhad, KL Industrial Services Berhad, Malaysia-China Business Council (“MCBC”) and Goldis Berhad. He is a Trustee of Yayasan Bursa Malaysia and Ng Teck Fong Foundation.

He attended all the five (5) Board Meetings held during the financial year ended 30 June 2014. IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014 045

DATUK LEE SAY TSHIN Independent Non-Executive Director Malaysian, Age 61

Datuk Lee Say Tshin was appointed to the Board on 22 August 2013. He is a member of the Audit and Risk Management Committee.

Datuk Lee Say Tshin graduated with a Bachelor of Economics (Honours) from University of Malaya in 1975. Thereafter, he joined HSBC Bank (M) Berhad as an Executive and went on to become an accomplished banker with approximately 38 years of experience in the banking industry. His last position held in HSBC Bank (M) Berhad was as the Managing Director of Strategic Business Development prior to his retirement on 30 June 2013.

In his capacity as Managing Director of Strategic Business Development, Datuk Lee Say Tshin was instrumental in developing new businesses with the Malaysian Government at both federal and state levels, particularly in promoting HSBC Islamic banking products. He has been assisting government agencies, major Government Linked Companies and Malaysian large corporations in promoting the growth of infrastructure, oil and gas, oil palm and real estate business.

Datuk Lee Say Tshin was an Independent Non-Executive Deputy Chairman of Green Ocean Corporation Berhad.

He attended all the five (5) Board Meetings held during the financial year ended 30 June 2014. 046 IOI PROPERTIES GROUP BERHAD • ANNUAL REPORT 2014

PROFILE OF DIRECTORS (Cont’d)

DR TAN KIM HEUNG Independent Non-Executive Director Malaysian, Age 52

Dr Tan Kim Heung was appointed to the Board on 1 June 2013. He is a member of the Audit and Risk Management Committee and Nominating and Remuneration Committee.

Dr Tan graduated with a Bachelor of Medicine and Surgery (“MBBS”) (London) (Honours) from The Middlesex and University College Hospital Medical School, London in 1986 and received his Member of the Royal College of Physicians (“MRCP”) (United Kingdom) in 1989. In 1995, he was awarded a Doctorate of Medicine/Cardiology (“MD”) from the University of London. He became a Fellow of the American College of Cardiology (“FACC”) in 1997, Member of the Academy of Medicine Malaysia (“AM”) in 1999, and was awarded Fellowship of the Royal College of Physicians (“FRCP”) (London) in 2001.

Dr Tan is a Consultant Cardiologist at HealthScan Malaysia™. He is also a Consultant Cardiologist at Sunway Medical Centre, Petaling Jaya, Malaysia. He was previously Professor of Medicine and Head of Cardiology at the University Malaya Medical Centre (“UMMC”) in Kuala Lumpur, Malaysia. He held this position for seven (7) years since 1997, having previously served as a Cardiologist at Guy’s Hospital, London, United Kingdom.

Dr Tan is a recipient of numerous outstanding academic awards and prizes with vast experience in various interventional cardiac procedures. He is author or co-author of more than 100 published papers/articles/abstracts in peer reviewed journals and has contributed chapters to several books. He is frequently invited to lecture and to participate as an expert faculty in international and national conferences/ seminars/courses. He is also a fellow or member of numerous professional organisations and advisory boards.

He attended all the five (5) Board Meetings held during the financial year ended 30 June 2014.

Notes: 1. Save as disclosed above, none of the Directors have: a. any family relationship with any directors and/or substantial shareholders of the Company; and b. any conflict of interest with the Company. 2. None of the Directors have any conviction for offences within the past ten (10) years.