GP AR inner cover:Layout 1 29/05/12 4:35 PM Page 1 GP AR pg1-32:GP proposed 28/05/12 3:16 PM Page 1 CORPORATE INFORMATION 002 Vision and Mission 004 About Green Packet 006 Our Core Business 008 Solutions Converged Communications Services 012 Our Corporate Milestones 014 Corporate Responsibility 016 Corporate Information 017 Corporate Structure 018 5-Year Financial Highlights 020 Board of Directors 022 Profile of Directors 027 Message from the Chairman CORPORATE GOVERNANCE OTHER CORPORATE INFORMATION 033 Statement on Corporate Governance 139 List of Property 040 Audit Committee Report 140 Analysis of Shareholdings 044 Statement on Internal Control 144 Analysis of Warrantholdings 046 Statement on Directors’ Responsibility 146 Notice of Annual General Meeting 047 Additional Compliance Information 148 Statement Accompanying 049 Financial Statements Notice of Annual General Meeting 149 Appendix I Form of Proxy GP AR pg1-32:GP proposed 28/05/12 3:16 PM Page 2 2 Green Packet Berhad | Annual Report 2011 To be a visionary global leader in delivering best connectivity to enrich lives. GP AR pg1-32:GP proposed 28/05/12 3:16 PM Page 3 Annual Report 2011 | Green Packet Berhad 3 We set out to be an inspiring international brand and company offering high value and beneficial products, solutions and services through our two synergistic business pillars of Solutions and Converged Communications Services. To fulfill our mission, we will continuously: • Innovate to meet the current and future needs of our customers; and commit to the culture of service excellence • Deliver our value proposition to the international marketplace • Develop, engage and appreciate our people • Adopt organizational best practices • Generate sustained growth and fair shareholder returns • Be a responsible and active corporate citizen GP AR pg1-32:GP proposed 28/05/12 3:16 PM Page 4 4 Green Packet Berhad | Annual Report 2011 Green Packet Berhad (Green Packet) is an international information technology and communications company founded in the Silicon Valley, California. In year 2000, Green Packet established a regional R&D and marketing centre in Malaysia, a strategic location and gateway to the new major economies in ASEAN. GP AR pg1-32:GP proposed 28/05/12 3:16 PM Page 5 Annual Report 2011 | Green Packet Berhad 5 Green Packet is today headquartered near Malaysia’s robust capital city, Kuala Lumpur, and is listed on the Main Market of Bursa Malaysia Securities Berhad. It has operations in the USA, Singapore, China, Taiwan, Australia, Bahrain, Egypt, Hong Kong, Spain and Brazil, and employs more than 1,000 employees. Over the years, the Company has evolved to be recognized as a leading player in Next Generation mobile broadband and networking solutions with an exceptional range of revolutionary communications products and services. Its business is anchored on two key pillars - “Solutions and Converged Communications Services” GP AR pg1-32:GP proposed 28/05/12 3:16 PM Page 6 6 Green Packet Berhad | Annual Report 2011 GP AR pg1-32:GP proposed 28/05/12 3:16 PM Page 7 Annual Report 2011 | Green Packet Berhad 7 Green Packet presents a compelling business case to the entire wireless value chain - device manufacturers, telecommunications companies (Telcos) and end-consumers - for the implementation of pervasive wireless access to fulfill the customer’s needs and expectations for connectivity, mobility, security and lifestyle requirements. Green Packet fully harnesses the powerful synergy of its two core business pillars of ‘Solutions’ and ‘Converged Communications Services’ to deliver unique benefits to our wide-ranging customers. PILLAR 1: SOLUTIONS PILLAR 2: CONVERGED COMMUNICATIONS SERVICES Provision of leading carrier-grade solutions and award-winning Provision of 4G wireless broadband converged services consumer devices to Telcos and device manufacturers. spanning connectivity, communications, and content and services. Green Packet has expertise in providing a seamless and unified platform to deliver multimedia communications and Green Packet’s subsidiary, Packet One Networks (Malaysia) services regardless of the nature and availability of backbone Sdn Bhd better known as P1, is Malaysia’s first and leading infrastructures. Its range of products opens up new avenues 4G Telco providing Malaysian broadband consumers with for Telcos and device manufacturers to gain competitive superior value high speed wireless broadband services to advantage by enabling the seamless integration of fixed, realize P1’s ‘broadband for all’ mission. mobile, voice, and data networks; and their provision of anytime, anywhere access and relevant content to the end- user. GP AR pg1-32:GP proposed 28/05/12 3:16 PM Page 8 8 Green Packet Berhad | Annual Report 2011 GREENPACKET SOLUTIONS Greenpacket Solutions prides itself as a leading developer of Next Generation mobile broadband and networking solutions with the vision in a future of limitless freedom in wireless communications. With its extensive portfolio of highly innovative carrier-grade solutions and award-winning consumer devices, Greenpacket Solutions helps telecommunication operators open new avenues, meet new demands, and enrich lifestyles while forging new relationships. CARRIER SOLUTIONS Greenpacket Solutions offers a wide range of award winning carrier-grade, customizable solutions encompassing connectivity, communications, content delivery and diagnostics. Our connectivity experience and mobile data offload solutions facilitates the delivery of a meaningful connectivity experience that are lifestyle-based, feature rich and customizable to offer best-in-class user experience whilst addressing prevailing carriers need for network convergence. With our industry know-how, Operators enjoy shorter time-to-market, tremendous cost savings, and customer loyalty which translate into improved Average Revenue Per User (ARPU). INTOUCH CONNECTIVITY EXPERIENCE Greenpacket Solutions’ award-winning Intouch Connectivity Experience solution converts Multiple Devices, Multiple Networks and Multiple Environments into a converged experience. Intouch Connectivity Experience delivers next generation networks experience management through a single-client platform for handhelds, modems and laptops across multiple networks and automated over the air firmware updates gives the convenience to ensure consumers’ device are always up-to-date. AWARD & NOMINATIONS Intouch Connectivity Experience was Intouch Connectivity Experience was Intouch Connectivity Experience was nominated as a finalist for the World Vendor awarded the Product of The Year by 4G awarded the TMC WiMAX Distinction Award 2012. Wireless 2010. Award 2009. GP AR pg1-32:GP proposed 28/05/12 3:16 PM Page 9 Annual Report 2011 | Green Packet Berhad 9 INTOUCH DATA OFFLOAD Greenpacket Solutions’ Intouch Data Offload is a carrier-grade solution that comprises of Intouch Seamless Data Offload and Intouch Dynamic Data Offload to transparently offload 3G~Wi-Fi and to push operator’s services and manage data traffic effectively. Users will enjoy uninterrupted connectivity on-the-go ensuring that they are connected anytime, anywhere for a truly ubiquitous connectivity experience. INSTINQ SERVICE MANAGEMENT AND OPERATIONS Instinq Service Management and Operations is an intelligent solution that provides proactive self-service customer care through online and offline support. The diagnostic and self-healing mechanism detects and resolves device connectivity issues with pre-engineered knowledge models. The closed loop learning system aggregates knowledge model over time and troubleshoots and resolves problems without the intervention of customer support personnel. DX Tower WiMAX 1. UH Shuttle 4G WiMAX USB OX WiMAX Outdoor Pocket Modem. UT WiMAX USB Greenpacket’s DV WN Wi-Fi Network Indoor Modem was Modem was nominated for Modem. Modem. 4G WiMAX Indoor Extender. awarded the Product the German Design Awards Modem was awarded of The Year by 4G 2012, in the Product Design the TMC WiMAX Wireless Evolution category. Distinction Award 2012. 2009. 2. UH Shuttle 4G WiMAX USB Modem was honored the iF Product Design Award 2011 for its outstanding design achievement. 3. UH Shuttle 4G WiMAX USB Modem was awarded the Product of The Year by 4G Wireless Evolution 2010. 4G DEVICES Greenpacket Solutions’ comprehensive range of field-tested 4G WiMAX Modems encompasses indoor, outdoor, USB dongles and pocket modems for residential, enterprise and nomadic use. Greenpacket Solutions’ award-winning 4G WiMAX Modems have been widely recognized by 4G operators to be best-in-class devices with superior indoor and outdoor signal quality performance, rich features and attractive form factor which reaffirm Greenpacket Solutions’ commitment to innovating high quality products that address real market needs. In 2012, Greenpacket Solutions has already embarked on the LTE trail with the company’s first LTE product made available in the second quarter. GP AR pg1-32:GP proposed 28/05/12 3:16 PM Page 10 10 Green Packet Berhad | Annual Report 2011 Packet One Networks (Malaysia) Sdn Bhd ("P1"), a subsidiary of Green Packet Berhad with South Korea leading Operator, SK Telecom as second largest shareholder, is Malaysia's first and leading 4G telecommunications company. P1 4G represents the first large-scale commercial 4G WiMAX deployment in Southeast Asia, and the first large-scale deployment of an 802.16e 2.3GHz WiMAX network outside Korea. Although LTE is still in its infancy in Malaysia, P1 is already gearing up for 4G LTE transition and deployment