ABOUT OUR REPORT We remain committed to creating long-term value for our stakeholders, backed by our proven track record of over four decades in developing sustainable communities. Our continuing mission is to meet the evolving property needs of a th developing Malaysia and its future generations. ANNUAL GENERAL MEETING OF 47SIME DARBY PROPERTY WHERE Banyan Room, Ground Floor Sime Darby Convention Centre 1A, Jalan Bukit Kiara 1 60000 Kuala Lumpur, Malaysia In line with the Government’s initiative and the SC Guidance Note, the Company will conduct the 47th AGM on a virtual basis through live streaming and online remote voting. We strongly encourage you to participate in the 47th AGM via the Remote Participation and Voting (“RPV”) facilities which are available on Tricor Investor & Issuing House Services Sdn Bhd’s (“Tricor”) TIIH Online website at https://tiih.online. WHEN RATIONALE Friday, 26 June 2020 At Sime Darby Property, we place great emphasis on both sustainability and growth. TIME By keeping up with the changes in the industry, we have managed to sustain our business and grow exponentially through 10.00 am the decades, and that is why even after 47 years in the business, we are still one of the leading and sustainable property developers in Malaysia. Each year tells a different story but one that reflects our growth in the business, and of our successful track record of developing Board of Directors sustainable communities. Our winning mindset is reflected by the multiple local and CHAIRMAN international accolades we have won over the years, but more Tan Sri Dr. Zeti Akhtar Aziz importantly it is represented by our people who strive to bring innovative solutions and deliver excellence in all that we do. BOARD MEMBERS This report charts our growth so far and what we aim for the future. • Dato’ Jaganath Derek Steven Sabapathy • Tengku Datuk Seri Ahmad Shah Alhaj ibni Almarhum Sultan Salahuddin Abdul Aziz Shah Alhaj CORPORATE BOOK • Dato’ Johan Ariffin Contents • Datuk Dr. Mohd Daud Bakar • Provide a comprehensive assessment of the Group’s performance • Dato’ Seri Ahmad Johan Mohammad Raslan for the Financial Year 2019 and outlook for 2020. • Datin Norazah Mohamed Razali • Encik Rizal Rickman Ramli Regulations Complied • Datuk Poh Pai Kong • Companies Act 2016 in Malaysia. • Bursa Malaysia Main Market Listing Requirements. PRESENCE IN Since our listing in 2017, this is our third annual report. It covers the Financial Year 2019 (FY2019) and is prepared in accordance with the principles prescribed by the International Integrated Reporting Council. Embarking on a journey with Integrated Reporting (IR) has been an MALAYSIA UNITED KINGDOM SINGAPORE AUSTRALIA VIETNAM important decision for us, in terms of evolving with our paradigm of ‘value creation’. With IR, our attempt will be to further build on our strategies, improve on our processes, and strengthen our capitals. PERIOD The FY2019 report of Sime Darby Property Berhad (hereafter referred to as Sime Darby Property), covers the period of 1 January 2019 to 31 December 2019. MARKET CAPITALISATION TOTAL ASSETS TOTAL EMPLOYEES SCOPE CORE BUSINESS RM6.2billion RM15.5billion 1,515 The report covers the main activities, key business areas and operations of as at 31 December 2019 as at 31 December 2019 as at 31 December 2019 Sime Darby Property, its subsidiaries as well as joint ventures in Malaysia and abroad. The report also discusses our outlook, targets and objectives. PROPERTY DEVELOPMENT FORMAT In keeping with IR Principles, the report includes information on both financial and non-financial performance of Sime Darby Property, with clear articulation of various risks and opportunities, our mitigation strategies, PROPERTY and management’s approaches to value creation. The report has also been INVESTMENT prepared in compliance with Bursa Malaysia Main Market Listing Requirements, Malaysian Financial Reporting Standards and Companies Act VISION MISSION 2016 in Malaysia. Leader in Building Sustainable To Create a Place that Inspires, Connects LEISURE & Communities and Lasts for Generations to Come THE SIX CAPITALS HOSPITALITY In progressing towards our vision of being a leader in building sustainable communities through sustainable property development, we are CORE VALUES [PRIME] empowered by our six capitals (inputs) and encouraged by their outcomes. Passion | Respect & Teamwork | Integrity & Accountability | Make It Happen | Entrepreneurial Spirit Our business model on page 30 contextualises how the capitals are Township, deployed, how we apply our internal governance and systems, strategies Integrated and Niche to manage externalities and key performance indicators (KPIs) towards Developments: measuring outcomes across the six capitals. STAKEHOLDER ENGAGEMENT & VALUE CREATION 24 We have applied the principles of Stakeholder Relationships and Materiality (see pages 32 to 37 on our Stakeholder Engagement Plan) when determining our organisational focus. This means understanding and responding to the needs of our stakeholders and matters that are material and significantly impact our ability to create value. The key material Land Bank to be Developed: matters, various risks and opportunities associated with them, our mitigation, strategies, and outcomes are outlined on pages 40 to 48. 19,977acres SUSTAINABILITY Sime Darby Property’s ultimate objective is to create sustainable communities and to create value for our multiple stakeholders. All our efforts are channelled towards creating positive impact across the 3 Total Estimated Gross Development Sustainability Spheres – People, Planet and Prosperity. Our sustainability Value (GDV): commitments and achievements for the period under review are included in this report on pages 192 to 223. billion FORWARD LOOKING STATEMENTS RM86.9 This report may contain forward-looking statements on Sime Darby Property’s future direction, topline strategies and potential opportunities for growth. However, such statements in relation to both financial and non-financial performance are not conclusive and the actual implementation and results may differ from our projections/expectations, depending on various risk factors, market uncertainties and possible deviation from our set path due to unforeseen events or matters beyond management’s control. CORE BUSINESS SEGMENTS & SEGMENT HIGHLIGHTS Key Highlights 94.4% PROPERTY DEVELOPMENT Contribution to Group Revenue Sime Darby Property prides itself as a leading developer of RM landed and strata properties for residential, offices, retail and billion industrial developments. Our ongoing townships reflect our well 3.14 Sales Achieved in FY2019 known developments in Taman Melawati, Subang Jaya and Bukit Jelutong. Some of our recent developments include City of Elmina RM in Shah Alam, Serenia City in Sepang, Bandar Bukit Raja in Klang billion and Bandar Universiti Pagoh in Johor. 1.55 Unbilled Sales Key Highlights RM 1.70 billion PROPERTY INVESTMENT Total Value of Assets Sime Darby Property is an established property Our Property Investment segment comprises retail, office and developer with an excellent track record in industrial assets which are located within Klang Valley and 1.68 million sq.ft. developing residential, commercial and industrial Singapore. Included in this segment is also the Concession Total Net Lettable Area properties. Arrangement business that provides asset management services which include facilities and infrastructure management for We are Malaysia’s biggest property developer in campuses in the Pagoh Education Hub in Bandar Universiti Pagoh. WHO terms of land bank, with 19,977 acres of 87% remaining developable land with a total Average Occupancy Rate estimated GDV of RM86.9 billion. Our growth in the industry is represented by the 4 24 strategically located and active townships/ institutions of higher learning WE ARE developments built to date. Over These townships/developments are connected to major highways and transportation hubs within key growth areas from the central region of Klang 7,800 students Valley to Negeri Sembilan and Johor in the South. AND * Total asset value, total net lettable area Our global reach not only encompasses assets and average occupancy rate include assets held under joint ventures. and operations across the Asia Pacific region, but ** The average occupancy rate excludes the we are also present in the United Kingdom as the * Effective from 1 January 2019, the Group has combined the Property Investment and occupancy rate of KL East Mall, which is developer of the iconic Battersea Power Station Concession Arrangement which have similar economic characteristics as a single expected to commence operations in the operating segment. second half of 2020. project in central London. WHAT Key Highlights We take pride as a developer of sustainable communities and of our achievement as the first TPC KL received 4 Malaysian property developer to be awarded the recognitions from World Golf International FIABCI Prix d’Excellence Awards LEISURE & HOSPITALITY Awards and Asian Golf Awards twice for its Subang Jaya and UEP Subang Jaya 2019, including Audubon WE DO townships. The Leisure and Hospitality arm of our business manages assets Cooperative Sanctuary for Golf which include a convention centre, three golf courses, a cricket in Malaysia Our townships have matured and remain as club and lawn bowl facilities in Malaysia and a serviced residence sought-after addresses with vibrant population located in Vietnam. Achieved average centres throughout the years. We