Annual Report 2017 Group Highlights 2017

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Annual Report 2017 Group Highlights 2017 ANNUAL REPORT 2017 GROUP HIGHLIGHTS 2017 1. SALES 4. SHAREHOLDERS FUND 7. PROFIT ATTRIBUTABLE TO RM4.92 billion RM11.94 BILLION OWNERS OF THE COMPANY RM933 million 2. REVENUE 5. EARNINGS PER SHARE 8. ENLARGED LAND BANKS RM4.52 billion 26.77 Sen 9,606 acres 3. PROFIT BEFORE TAX 6. DIVIDEND PER SHARE 9. STRONG GDV IN THE PIPELINE RM1.27 billion 15.5 sen RM128.37 billion 10. ON-GOING PROJECTS 44 projects TOTAL SALES 11. UNBILLED SALES ACHIEVED RM7.72 billion FOR FY2017 IS 12. TOTAL STRONG DYNAMIC & DIVERSIFIED EMPLOYEES RM4.92 BILLION 2,300 people COVER RATIONALE At S P Setia, the sky is not the limit. In fact, we believe that the future is limitless. Opened to the possibilities of tomorrow, we embarked on a journey of strengthening growth, anchored by the dynamic and highly-talented Team Setia and our wide range of products. Guided by our ethos, we worked together, embraced change and demonstrated our resilience in the face of challenges while at the same time, boosting our capabilities today to fortify tomorrow’s opportunities. We will continue to reinforce our strong foundations, define our path forward to build a meaningful, sustainable future, for us and for our stakeholders. CONTENT OUR BUSINESS OUR LEADERSHIP AND PEOPLE Vision, Mission & Values 3 Board of Directors 36 Corporate Profile 4 Directors’ Profiles 38 Global Presence 6 Senior Management Team Profiles 48 Corporate Structure 8 Corporate Information 11 OUR ACHIEVEMENTS AND ACCOLADES Achievements 54 OUR PERFORMANCE REVIEW Accolades 60 Chairman’s Message 12 Management Discussion and Analysis 16 OUR SUSTAINABILITY STATEMENT Group Financial Summary 34 Introduction 62 Economic 66 Environment 68 Social 74 VISION VALUES TO BE THE BEST • I build life-long relationships with my customers • I am responsive to the expressed and unexpressed needs of IN ALL WE DO my customers • I create magical moments at every opportunity • I embrace integrity and protect the privacy of my customers MISSION and the company’s confidential information • I understand my role and responsibility in achieving SETIA’s success • To provide superior customer service and satisfy • I have the opportunity to learn and grow customer needs through a culture of excellence • I perform my work professionally and with continuous • To enhance shareholder’s value improvement • I am responsible for ensuring a safe and clean environment • To be a caring and responsible employer • I support and respect my fellow team members • To be mindful of our social responsibilities • We are TEAM SETIA OUR GOVERNANCE OUR FINANCIAL STATEMENTS Corporate Governance Overview Statement 89 Notes to the Financial Statements 147 Additional Compliance Information 110 Statement by Directors 267 Statement on Risk Management and Internal Controls 115 Statutory Declaration 267 Independent Auditors’ Report 268 OUR FINANCIAL STATEMENTS Corporate Information 126 OTHER INFORMATION Directors’ Report 127 Analysis of Shareholdings 273 Statements of Financial Position 135 List of Material Properties held by the Group 280 Statements of Comprehensive Income 138 Notice of Annual General Meeting 281 Consolidated Statement of Changes in Equity 140 Group Directory 286 Statement of Changes in Equity 142 Statements of Cash Flows 143 Form of Proxy CORPORATE PROFILE as well as in Kota Kinabalu, Sabah. The Group has also gained S P Setia Berhad is the No. 1 a bigger market share in terms of land banks with its recent acquisitions. In terms of international projects, we have built a pure-play property developer strong presence in the United Kingdom, Australia, Singapore, China and Vietnam where the Group has successfully in Malaysia. developed high quality residential, commercial spaces and integrated developments. Recognised as one of Malaysia’s leading listed real estate Team Setia is our point of difference. With a workforce of more players with a portfolio that encompasses townships, eco- than 2,300 Team Setia members from diverse backgrounds, sanctuaries, luxury enclaves, high-rise residences, commercial we focused on strengthening growth. We believe it is important and retail as well as integrated mixed developments, S P Setia to keep our team highly-motivated and dedicated to our core has today emerged as a strong and diversified award-winning value of pursuing continuous excellence. Placing customer multi-disciplinary property developer in Malaysia. satisfaction at the forefront of the development value chain, these talented individuals make the experience of purchasing The Group is at the forefront of branding in the property and owning a Setia property, uniquely Setia. industry, holding steadfast to its development philosophy. Our ability to connect communities, S P Setia takes its sustainability commitments seriously. As create ecological features and sustainable living environments a responsible corporate citizen, we believe that we have a that enrich the lives of our residents has made the Setia brand role to play in conserving the environment, empowering our synonymous with strength, reliability and the value creation communities and generally, being a positive agent of change that we bring to all our developments. in the areas where we operate. The S P Setia Foundation, helmed by our Group Chairman, implements our corporate S P Setia has an extensive presence in the three key economic responsibility initiatives with impactful results for the regions of Malaysia, namely Klang Valley, Johor and Penang, betterment of the society. 4 OUR BUSINESS S P Setia Berhad Group Annual Report 2017 CORPORATE PROFILE In 2017, S P Setia was ranked No. 1 in The Edge Malaysia’s Top Property Ranked No. 1 Developers Awards for a record-breaking ten times, the only developer to in The Edge Malaysia’s have achieved this feat. In recognition of our efforts in delivering innovation and quality in property development, we were recognised by the International Top Property Developers Real Estate Federation (“FIABCI”) seven times, including being awarded Best Master Plan Development and Best Affordable Housing at the FIABCI Malaysia Awards 10 times. Property Awards 2017. S P Setia was also recognised for its efforts in building a strong team as it won the 8th Aon Best Employers in Malaysia Award. S P Setia Berhad Group Annual Report 2017 OUR BUSINESS 5 GLOBAL PRESENCE MALAYSIA Central Region • Setia Alam • Setia City • Setia EcoHill • Setia EcoHill 2 • Setia Eco Park • Setia Eco Glades • Setia Eco Templer • KL Eco City • Setia Sky Seputeh • TRIO by Setia • Setia Seraya Residences • Bandar Kinrara • TemasyaGlenmarie • Alam Impian • Bandar Baru Seri Petaling • Setia AlamSari • Kota Bayuemas • Seri Beringin • Alam Damai • Alam Sutera Setia EcoHill, Semenyih Southern Region • Setia Eco Cascadia • Setia Tropika • Setia Indah • Setia Eco Gardens • Bukit Indah Johor • Setia Business Park I & II Northern Region • Setia Sky 88 • Setia Pearl Island • Taman Perling • Setia Greens • Taman Rinting • Setia Sky Vista • Taman Pelangi • Setia Sky Ville • Taman Pelangi Indah Eastern Region • Setia SPICE • Taman Industri Jaya • Aeropod, Kota Kinabalu Setia SPICE, Penang Setia Sky 88, Johor Aeropod, Kota Kinabalu 6 OUR BUSINESS S P Setia Berhad Group Annual Report 2017 GLOBAL PRESENCE UNITED KINGDOM • Battersea Power Station Battersea Power Station, London CHINA • Qinzhou Industrial Park VIETNAM • EcoLakes, My Phuoc • EcoXuan, Lai Thieu EcoLakes, Vietnam AUSTRALIA • MAISON, Carnegie • Sapphire By The Gardens, Melbourne Sapphire By The Gardens, Melbourne SINGAPORE • Eco Sanctuary Eco Sanctuary, Singapore S P Setia Berhad Group Annual Report 2017 OUR BUSINESS 7 CORPORATE STRUCTURE PROPERTY DEVELOPMENT 100% Bandar Setia Alam Sdn Bhd 50% Greenhill Resources Sdn Bhd 100% Setia Duta One Sdn Bhd# 100% Setia Alam Recreation Sdn Bhd 50% Bandar Eco-Setia Sdn Bhd 100% Setia Eco Park Recreation Sdn Bhd 100% Bukit Indah (Johor) Sdn Bhd 100% Setia Indah Sdn Bhd 100% Shabra Development Sdn Bhd 100% Syarikat Kemajuan Jerai Sdn Bhd# 100% Lagavest Sdn Bhd# 100% Ambleside Sdn Bhd# 100% Bukit Indah (Perak) Sdn Bhd 100% Setia Promenade Sdn Bhd Bukit Indah Property Management 70% Sdn Bhd 50% Golden Klang Valley Sdn Bhd# 100% Sendiman Sdn Bhd 100% Exceljade Sdn Bhd 100% Aeropod Sdn Bhd 70% Setia Eco Glades Sdn Bhd 70% Kemboja Mahir Sdn Bhd 100% Ganda Anggun Sdn Bhd 100% Kewira Jaya Sdn Bhd 100% Kay Pride Sdn Bhd 60% Setia Putrajaya Sdn Bhd 100% Setia Putrajaya Construction Sdn Bhd# 100% KL Eco City Sdn Bhd 100% Setia Putrajaya Development Sdn Bhd 100% Setia International Limited 100% Setia MyPhuoc Limited 55% SetiaBecamex Joint Stock Company 100% KL East Sdn Bhd 100% Setia Land (China) Limited Setia Lai Thieu One Member 100% Setia City Development Sdn Bhd 95% Setia Lai Thieu Limited 100% Company Limited 100% Gita Kasturi Sdn Bhd Setia (Melbourne) Development 100% Setia Australia Limited 100% 50% Retro Highland Sdn Bhd Company Pty Ltd Battersea Project Holding Company 40% 100% Setia St Kilda (Melbourne) Pty Ltd 100% Setia Ecohill 2 Sdn Bhd Limited & subsidiaries 100% Setia Carnegie Pty Ltd 100% Setia Hicon Sdn Bhd Battersea Power Station Development 40% Setia Fontaines Sdn Bhd (formerly Company Limited & subsidiaries 100% Setia A’Beckett (Melbourne) Pty Ltd 100% known as Setia Recreation Sdn Bhd) 40% Battersea Power Station Estates Limited 50% Setia Federal Hill Sdn Bhd 100% Setia Bina Raya Sdn Bhd 100% Intra Hillside Sdn Bhd 100% Setia Eco Templer Sdn Bhd 100% Setia Eco Templer Recreation Sdn Bhd 100% Setia Eco Land Sdn Bhd Setia Ecohill Recreation Sdn Bhd 100% Setia Ecohill Sdn Bhd 100% (formerly known as S P
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