TABLE OF CONTENTS 001 005 008 Preface 070 • Urusan Teknologi Corporate Framework Airports Operated by Wawasan Sdn. Bhd. 004 Financial Calendar & 124 Corporate Profile The Group (UTW) 282 MAHB (Malaysia Airports Key Financial Data 128 Media Highlights 2007 071 • Malaysia Airports (Niaga) Holdings Bhd) Traffic 2007 006 Letter From The Chairman 136 Awards & Recognitions Sdn. Bhd. (Eraman 283 Passenger Movements 2007 008 Notice Of Annual General 138 Corporate Information Malaysia) 285 Passenger Movements Meeting 140 Group Corporate 074 • Malaysia Airports (1998-2007) 012 Location of the AGM Venue Structure (Properties) Sdn. Bhd. 287 International Passenger 013 Statement Accompanying 142 Group Organisation [MA(P)] Movements By Sectors At KL Notice Of Annual General Structure 076 • K.L. Airport Hotel Sdn. International Airport Meeting Bhd. (KLAH) 296 Commercial Aircraft Movements 077 • MAB Agriculture- 2007 Horticulture Sdn. Bhd. 006 298 Commercial Aircraft Movements 002 (MAAH) Governance & (1998-2007) Performance Review 078 • Asia Pacific Auction Accountability 300 All Aircraft Movements Centre Sdn. Bhd. (APAC) (1998-2007) 020 Key Financial Highlights 146 Statement On Corporate 079 • Sepang International 302 Cargo Movements 2007 021 Group Segmental Analysis Governance Circuit Sdn. Bhd. (SIC) 304 Cargo Movements (1998-2007) 022 Group Financial Performance 174 Risk Management 306 International Cargo Movements Review 176 Board Audit Committee Report 080 Our Human Capital : By Sectors At KL International 025 Statement Of Distribution 178 Terms Of Reference MAHB The Way To Excellence Airport 026 Simplified Group Balance Board Audit Committee(“BAC”) 082 Airport Services Quality : 315 Mail Movements 2007 Sheets 181 Statement On Internal Control Achieving More 317 Mail Movements (1998-2007) 027 Statement Of Workforce 185 Statement Of Directors’ 084 Airport Safety & Security : 319 International Mail Movements 027 Group Quarterly Performance Responsibility Zero Tolerance By Sectors At KL International 028 Group 5-Year Summary 086 Occupational Safety & Health : Airport 029 5-Year Financial Highlights A New Focus 322 KL International Airport Mail 030 Airport Performance 088 Green Globe 21 : Movements 2007 Benchmark 007 Four Successive Years Financial Statements 324 Movements At MAHB 089 Corporate Social Responsibility: STOLports In Sabah & 188 Directors’ Report An Enduring Legacy Sarawak 2007/2006 192 Statement By Directors 091 Serving the National Interest 325 Airlines Operating At KL 003 192 Statutory Declaration 092 A New Level Of Relationship International Airport 2007 Perspectives 193 Report Of The Auditors To The Management (December) 036 Chairman’s Statement Members 326 Definitions 048 Managing Director’s 194 Income Statements Review Of Operations 195 Balance Sheets 001 327 Statistics Of Shareholdings 066 • Malaysia Airports 197 Consolidated Statement Of 330 Shareholders And Investor Technologies Sdn. Bhd. 004 Changes In Equity The Leading Edge Information (MA Technologies) 198 Statement Of Changes In 096 Board Of Directors 331 List Of Properties 2007 068 • Malaysia Airports Equity 110 Group Senior Management 333 Group Corporate Directory Management & 199 Cash Flow Statements 336 Airports In Malaysia Technical Services 202 Notes To The Financial 337 Proxy Form Sdn. Bhd. (MAMTS) Statements Annual Report What lies within our vision is the will to improve and achieve what the mission demands and that achievement is earned through sheer hard work and dedication from everyone within the group and from those who have supported us. 002 2007 Annual Report 001 Preface 004 Financial Calendar & Key Financial Data 006 Letter From The Chairman 008 Notice Of Annual General Meeting 003 012 Location of the AGM Venue 013 Statement Accompanying Notice Of Annual General 2007 Meeting Annual Report Financial Calendar & Key Financial Data 2007 Monthly Tr ading Volume & Highest-Lowest Share Price JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Volume 253,804 147,169 307,932 174,563 142,230 121,754 170,831 99,232 40,222 194,436 95,728 31,670 Highest 2.41 2.60 2.95 3.04 3.04 2.98 3.24 3.04 2.86 3.62 3.56 3.42 Lowest 2.18 2.10 2.05 2.89 2.82 2.84 2.88 2.44 2.58 2.84 3.14 3.00 Closing Price 2.29 2.32 2.94 2.99 2.82 2.89 3.06 2.58 2.86 3.54 3.24 3.02 004 2007 Annual Report 22 February 2007 21 September 2007 Announcement of the unaudited consolidated 4th quarter results Announcement of the Economic Profit for the 2nd quarter ended for the twelve months ended 31 December 2006. 30 June 2007. 9 May 2007 26 November 2007 Issuance of Notice of the 8th Annual General Meeting, Notice of Announcement of the unaudited consolidated 3rd quarter results Book Closure for Payment of final dividend and Annual Report for for the ninth months ended 30 September 2007, annoucement the financial year ended 31 December 2006. of the adoption for a dividend payout ratio of at least 50% of the consolidated annual net profit with effective from the financial 31 May 2007 year 31 December 2007 subject to availability of distributable 8th Annual General Meeting of the Company and the reserves, and issuance of Notice of Book Closure for payment of announcement of the unaudited consolidated 1st quarter results interim dividend. for the three months ended 31 March 2007 14 December 2007 27 June 2007 Book Closure for determining the entitlement of the interim Book Closure of determining the entitlement of the final dividend dividend of 4% less income tax of 27% on 1,100,000,000 of 4% less income tax of 27% on 1,100,000,000 ordinary shares ordinary shares (2.92 sen net per share) for the financial year (2.92 sen per share) for the financial year ended 31 December ended 31 December 2007. 2006. 28 December 2007 18 July 2007 Date of payment of the interim dividend for the financial year Date of payment of the final dividend for the financial year ended ended 31 December 2007. 31 December 2006. 28 February 2008 30 August 2007 Announcement of the unaudited consolidated 4th quarter results Announcement of the unaudited consolidated 2nd quarter 2007 for the twelve months ended 31 December 2007. results for the six months ended 30 June 2007. 4 September 2007 Announcement of the Headline Key Performance Indicators for the financial year ended 31 December 2007. 005 2007 Annual Report Letter From The Chairman The Annual Report and Audited Financial Statements provide comprehensive statement of our strategic direction, latest undertakings, achievements and awards, updates on corporate restructuring exercise, governance-initiatives, as well as the Dear Shareholder, Company’s financial disclosures for the shareholders’ attention and review. These documents can also be accessed at our corporate website at www.malaysiaairports.com.my. I am pleased to enclose herewith a copy of the For the year 2008, 9 resolutions are proposed for consideration Annual Report and Audited Financial Statements at the AGM. The purpose and reasons for each of the resolutions of Malaysia Airports Holdings Berhad (“the are explained under the Explanatory Notes of the Notice of AGM. I hope that you will find the brief explanations helpful in order to Company” or “MAHB”) for the year ended 31 make a better decision. December 2007. The Annual Report also contains the Notice of Annual General Meeting and a map In line with the Company’s dividend policy to distribute a dividend payout ratio of at least 50% of the consolidated annual net profit showing the location of the Meeting. The Ninth after taxation and minority interest annually, subject to availability Annual General Meeting (“the AGM”) will once of distributable reserves, the Board is recommending for the again be held at Gateway Ballroom, Level 1, The payment of a final dividend of 13.80 sen per share less income tax of 26% for the financial year ended 31 December 2007, subject 006 Pan Pacific Kuala Lumpur International Airport, to the shareholders’ approval at the AGM, which will be paid on Kuala Lumpur International Airport, Jalan CTA 27 June 2008 to the respective ordinary shareholders who are 4B, 64000 KLIA, Sepang, Selangor Darul Ehsan registered in the Records of Depositors on 13 June 2008. 2007 on Thursday, 29 May, 2008 at 11.00 a.m. During the year, the Board has initiated efforts to identify and appoint a director with wide commercial knowledge to drive and expand the Group’s non-aeronautical revenue further, which have since been completed with the appointment of Encik Jeremy Annual Report bin Nasrulhaq, who joined the Board on 15 August 2007. The Shareholders who are unable to attend the AGM, would still be appointment of Encik Jeremy had further strengthened the able to exercise their rights to vote, by completing the Proxy Form expertise and independence of the Board, and it is hoped that his as enclosed in the Annual Report, according to the instructions as commercial experience and financial expertise would effectively provided in the Form and submit it to the Registered Office of the assist the Group’s aims towards broadening the non-aeronautical Company at Head Office of MAB, Sultan Abdul Aziz Shah Airport, revenue. 47200 Subang, Selangor Darul Ehsan, not less than 48 hours before the time set for holding the Meeting or any adjournment At the 9th AGM, the Board is recommending the re-election of four thereof. Directors who are due for retirement, namely, myself, Y. Bhg. Dato’ Zaharaah binti Shaari, Encik Izlan bin Izhab and Encik Jeremy bin I look forward to meeting all the shareholders at the forthcoming Nasrulhaq, and being eligible, we offer ourselves for re-election. AGM and be able to share the latest issues and activities concerning Our biographical details are enclosed under the “Statement the company. Accompanying Notice of AGM” for your ease of reference.