b IJM Land Berhad (187405-T) THE SHAPE OF THINGS TO COME Always thinking ahead and planning with the future in mind, at IJM Land we ask ourselves, “What next?” Nothing inspires us more than future possibilities. The focal point of our developments has always been to deliver new living concepts ahead of their time. We are committed and dedicated to emerging new lifestyle standards as it makes our day to know that dreams are being fulfilled everyday. This cover reflects our passion to create and our proven capabilities in realising aspirations of a new generation of property owners. CONTENTS 3 CORPORATE STRUCTURE 18 CHAIRMAN’S STATEMENT 48 CORPORATE RESPONSIBILITY 4 SHARE AND WARRANT 22 CEO’S REVIEW OF PERFORMANCE OPERATIONS 56 FINANCIAL STATEMENTS 5 ORGANISATION CHART 26 CORPORATE 157 LIST OF TOP 10 GOVERNANCE PROPERTIES 6 GROUP FINANCIAL STATEMENT HIGHLIGHTS 163 ANALYSIS OF 35 AUDIT COMMITTEE SHAREHOLDINGS AND 8 CORPORATE REPORT WARRANTHOLDINGS INFORMATION 38 STATEMENT OF INTERNAL 168 NOTICE OF ANNUAL 9 PROFILE OF DIRECTORS CONTROL GENERAL MEETING AND SECRETARIES 40 QUALITY STATEMENT FORM OF PROXY 16 MANAGEMENT TEAM PROFILE 43 CUSTOMER RELATIONSHIP MANAGEMENT ANNUAL REPORT 2012 1 VISION MISSION VALUES PERSONALITY To be an • Passion • Teamwork • Professional internationally • Expertise • Innovative • Trend setting admired property developer • Leading edge • Customer focus • Astute ideas • Environmental • Dynamic • Creating value for sustainability customers & • Integrity stakeholders Aviva Green, Seremban 2 Creating outstanding landscapes that leave a lasting impression, while introducing new features and design that enhance possibilities and shape new lifestyles. Wangsa Baiduri, Subang Jaya ANNUAL REPORT 2012 3 Corporate Structure 100% 100% RB Land Sdn Bhd Aras Varia Sdn Bhd Dian Warna Sdn Bhd Ikatan Flora Sdn Bhd RB Property Management Sdn Bhd 100% Seremban Two Holdings Sdn Bhd Emko Properties Sdn Bhd Seremban Two Properties Sdn Bhd Tarikan Abadi Sdn Bhd Titian Tegas Sdn Bhd Unggul Senja Sdn Bhd 71% 29% Shah Alam 2 Sdn Bhd 100% RB Development Sdn Bhd 100% 100% ERMS Berhad Holiday Villa Management Sdn Bhd 100% 100% IJM Properties Sdn Bhd Chen Yu Land Sdn Bhd Manda’rina Sdn Bhd 86% Worldwide Ventures Sdn Bhd 70% Sova Holdings Sdn Bhd 80% Aqua Aspect Sdn Bhd Jelutong Development Sdn Bhd 70% Cypress Potential Sdn Bhd 51% Suria Bistari Development Sdn Bhd 4 IJM Land Berhad (187405-T) ShARE AND WARRANT PERfORmANCE 4.0 12,000 3.5 FBM 100 10,000 ShareShare Price (RM) 3.0 Performance 8,000 2.5 4.0 12,000 2.0 6,000 3.5 FBM 100 10,000 1.5 4,000 Share Price (RM) 3.0 1.0 8,000 2.5 2,000 0.5 2.0 6,000 0 0 1.5 April’11 May’11 June’11 July’11 August’11 September’11 October’11 November’11 December’11 January’12 February’12 March’12 4,000 1.0 IJM Land FBM 100 2,000 0.5 0 0 April’11 May’11 June’11 July’11 August’11 September’11 October’11 November’11 December’11 January’12 February’12 March’12 IJM Land FBM 100 Warrant Performance 4.0 12,000 3.5 FBM 100 10,000 3.0 Warrant Price (RM) Warrant 8,000 2.5 4.0 12,000 2.0 6,000 3.5 FBM 100 10,000 1.5 3.0 4,000 Warrant Price (RM) Warrant 1.0 8,000 2.5 2,000 0.5 2.0 6,000 0 0 1.5 April’11 May’11 June’11 July’11 August’11 September’11 October’11 November’11 December’11 January’12 February’12 March’12 4,000 1.0 IJM Land FBM 100 2,000 0.5 0 0 April’11 May’11 June’11 July’11 August’11 September’11 October’11 November’11 December’11 January’12 February’12 March’12 IJM Land FBM 100 ANNUAL REPORT 2012 5 ORganisation Chart PROPERTY DEVELOPMENT General Managers • Functions • Regions Property Development Sales & Marketing Board of Directors Sales Administration Land Administration Finance Business Development Human Resource Company Secretaries Committees Chief Executive Officer Property Management & Managing Director Quality Assurance Audit Internal Audit & HOTEL Risk Management Nomination & Remuneration General Managers Securities & Options Front Office Food & Beverage Housekeeping Club Operations Sales & Marketing Finance Human Resource Maintenance Security Information Technology 6 IJM Land Berhad (187405-T) gROUP fINANCIAL hIghLIghTS fYE2012 fYE2011 fYE2010 fYE2009 fYE2008 fINANCIAL YEAR ENDED 31 mARCh Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 Operating revenue 1,206,023 1,162,223 1,101,058 671,010 295,205 Profit before taxation 281,858 285,544 148,193 68,303 54,892 Net profit attributable to owners of the Company 193,709 217,653 108,663 51,126 41,713 Issued share capital 1,388,359 1,124,665 1,103,274 1,103,268 568,187 Shareholders' funds 2,429,599 1,836,223 1,655,447 1,547,551 692,960 Total asset 4,466,524 4,278,603 4,322,804 3,934,793 1,417,099 Earnings per share (Basic) sen 14.07 19.65 9.85 5.93 7.34 Gross dividend per share sen 4.00 4.00 2.00 - - Net assets per share RM 3.22 3.80 3.92 3.57 2.49 Return on total assets 4.34% 5.09% 2.51% 1.30% 2.94% Return on equity 7.97% 11.85% 6.56% 3.30% 6.02% Gearing (Borrowings/equity) 28.79% 30.96% 42.76% 34.40% 44.42% Share price (RM) High 2.92 3.25 2.68 2.51 3.50 Low 1.60 2.05 0.73 0.55 0.97 Closing 2.18 2.75 2.33 0.72 1.88 Warrant price (RM) High 1.54 1.93 1.40 0.35 n/a Low 0.56 0.85 0.17 0.08 n/a Closing 0.79 1.43 1.13 0.19 n/a Serena, S2 Heights, Seremban 2 Seri Riana Residence Show Gallery, Wangsa Maju, Kuala Lumpur ANNUAL REPORT 2012 7 OPERATING REVENUE (RM’000) PROFIT BEFORE TAXATION (RM’000) FYE FYE ‘08 295,205 ‘08 54,892 ‘09 671,010 ‘09 68,303 ‘10 1,101,058 ‘10 148,193 ‘11 1,162,223 ‘11 285,544 ‘12 1,206,023 ‘12 281,858 SHAREHOLDERS' FUNDS (RM’000) TOTAL ASSET (RM’000) FYE FYE ‘08 692,960 ‘08 1,417,099 ‘09 1,547,551 ‘09 3,934,793 ‘10 1,655,447 ‘10 4,322,804 ‘11 1,836,223 ‘11 4,278,603 ‘12 2,429,599 ‘12 4,466,524 Summer, S2 Heights, Seremban 2 8 IJM Land Berhad (187405-T) Corporate INfORmation Dato’ md Naim Bin Nasir Directors (Independent Non-Executive Director) Tan Sri Dato’ Tan Boon Seng @ Krishnan Boey Tak Kong (Non-Executive Chairman) (Independent Non-Executive Director) Dato’ Soam heng Choon Dato’ Teh Kean ming (Chief Executive Officer & Managing Director) (Non-Executive Director) Tan Sri Dato’ Nasruddin Bin Bahari Datuk Lee Teck Yuen (Senior Independent Non-Executive Director) (Non-Executive Director) Registered Office Share Registrar Auditors 2nd Floor, Wisma IJM IGB Corporation Berhad PricewaterhouseCoopers Jalan Yong Shook Lin (Share Registration Department) (Chartered Accountants) 46050 Petaling Jaya Level 32, The Gardens South Tower Level 10, 1 Sentral Selangor Darul Ehsan Mid Valley City Jalan Travers Malaysia Lingkaran Syed Putra Kuala Lumpur Sentral 59200 Kuala Lumpur 50706 Kuala Lumpur Tel : +603-7985 8288 Malaysia Malaysia Fax : +603-7952 1200 Email : [email protected] Tel : +603-2289 8989 Tel : +603-2173 1188 Website : www.ijmland.com Fax : +603-2289 8802 Fax : +603-2173 1288 E-mail : [email protected] Website : www.pwc.com/my Website : www.igbcorp.com Business Office Principal Bankers Ground Floor, Wisma IJM Stock Exchange Listing Jalan Yong Shook Lin AmInvestment Bank Berhad 46050 Petaling Jaya Main Market of CIMB Bank Berhad Selangor Darul Ehsan Bursa Malaysia Securities Berhad Malaysia since 19 December 1991 Hong Leong Bank Berhad Tel : +603-7985 8288 BMSB Code : 5215 HSBC Bank Malaysia Berhad Fax : +603-7952 9091 Reuters Code : IJML.KL OCBC Bank (Malaysia) Berhad Email : [email protected] Bloomberg Code : IJMLD MK Website : www.ijmland.com Public Bank Berhad United Overseas Bank (Malaysia) Berhad ANNUAL REPORT 2012 9 PROfILE Of DIRECTORS AND SecretarIES Tan Sri Dato’ Tan Boon Seng @ Krishnan PSM, SMS, DSPN B.Econs (Hons), CPA(M), MBA Non-Executive Chairman • Securities & Options Committee Tan Sri Dato’ Tan, born in December 1952, was appointed Chairman on 9 November 2007. He was the Group Financial Controller of Kumpulan Perangsang Selangor Berhad prior to joining IJM Corporation Berhad (“IJM”) as Financial Controller in 1983. He was appointed an Alternate Director in IJM on 12 June 1984, Director on 10 April 1990 and Deputy Managing Director on 1 November 1993. He was then appointed Group Managing Director on 1 January 1997 and was redesignated Chief Executive Officer & Managing Director (“CEO&MD”) on 26 February 2004. He stepped down as the CEO&MD of IJM on 31 December 2010 and was appointed Executive Deputy Chairman on 1 January 2011. He qualified as a Certified Public Accountant in 1978 after graduating with a Bachelor of Economics (Honours) degree from University of Malaya in 1975, and holds a Master’s degree in Business Administration from Golden Gate University, San Francisco, USA. His directorships in other public companies include IJM, IJM Plantations Berhad, Malaysian Airline System Berhad, Malaysian Community & Education Foundation and Grupo Concesionario del Oeste S.A., Argentina. He is a member of the Board of Governors of Malaysia Property Incorporated (MPI). He also serves as a Trustee of Perdana Leadership Foundation. He is actively involved in the promotion of Malaysia India business ties and is currently the President of the Malaysia-India Business Council (MIBC) and Chairman of the Malaysia India CEO Forum.