naim holdings berhad naim holdings berhad Annual Report 2009 F annual report 2009 annual report Registered and Head Office Ranked a Top Mid-Cap 9th Floor Wisma Naim, 2½ Mile, Rock Road Company for Best Practices in 93200 Kuching, Sarawak, Malaysia. Corporate Governance Tel: 6 082 411667 Fax: 6 082 429869 E-mail: [email protected] Winner of SHEDA Website: www.naim.com.my Excellence Award 2009 Top Developer In Residential Development Implemented more than RM2 billion of contracts Has construction order book of RM3.5 Billion Land bank 2,600 acres with estimated GDV of RM6 billion awards from where we began . 2009 SHEDA 2009 Top Developer In Residential Development Annual Report 1998 Annual Report 1999 Annual Report 2000 Annual Report 2001 NAIM CENDERA SDN BHD NAIM CENDERA SDN BHD NAIM CENDERA SDN BHD NAIM CENDERA SDN BHD Annual Report 2002 Annual Report 2003 Annual Report 2004 Annual Report 2005 NAIM CENDERA SDN BHD NAIM CENDERA NAIM CENDERA NAIM CENDERA HOLDINGS SDN BHD HOLDINGS SDN BHD HOLDINGS SDN BHD 2008 2007 2005 2005 2004 2004 2004 2004 2003 2003 2002 Malaysia The Malaysian Malaysia 17th KPMG The The Malaysian Malaysia SCCI The CIDB Builders Property Construction Corporate International Shareholder Malaysian Construction Canada Annual Malaysian Award Award Industry & Social Construction Value Construction Industry Business Corporate Construction Building Property Excellence Environment Award Awards Industry Excellence Council Report Industry Works Man of Awards Responsibility New Excellence Awards Business Awards Excellence Category The Year Contractor Award Millennium Awards Project Award Excellence Best Awards Institutional by FIABCI Award Award 2005 Builder of Medium Award Annual Project Building MALAYSIA (Grade7) Spain, The Year Scale Project Industry Report Award Project Madrid Engineering Excellence Award Medium Category for Building Construction Category Award Annual Report 2006 Annual Report 2007 Annual Report 2008 NAIM CENDERA NAIM CENDERA NAIM HOLDINGS SDN BHD HOLDINGS SDN BHD HOLDINGS SDN BHD (Formerly known as Naim Cendera Holdings Berhad) Annual Report 2009 NAIM HOLDINGS SDN BHD contents 4 vision and mission statement 6 valuing our customers 7 2009 at a glance 8 10-year financial highlights 10 share performance 11 corporate information 40 human resources 12 corporate structure 42 audit committee 13 organizational structure 14 cautionary statement regarding 45 corporate governance forward-looking statements 56 board committees cover 15 corporate profile 64 statement on internal control rationale 16 message to our shareholders 65 corporate social responsibility 24 review of operations 67 corporate social responsibility activities & events Our cover design for 2009 reflects 30 board of directors 71 investor relations activities the increasingly important role of 38 senior management team our Construction Division, and the 72 naim group in the news main photograph of steel erectors 74 diary of corporate events at work reflects the cooperation 80 economic outlook and sheer hard work that has made 82 financial statements the division’s success possible. 139 analysis of shareholdings The broad range of Naim’s 141 top 10 properties Property, Construction and Oil and 142 notice of annual general meeting Gas activities are reflected in the smaller photos. On the overlay, 145 form of proxy corporate highlights, key attributes and our latest industry award are all featured in order to give readers an at-a-glance overview of logo rationale what Naim offers its stakeholders. NAIM HOLDINGS BERHAD The logo type display the word Naim in green, red and gold colours which reflects the group’s strength and capabilities. Green represents growth, sincerity and fairness, red represents strength and prosperity, whilst gold represents excellence and superior quality. The word Naim is intersected by the apex of a toroid, a ring-like shape possessing exceptional strength, stability and integrity. The conjuction of the golden letter A and the toroid suggests a dazzling sunrise, predicting a shining long-term future for the group. 2 ANNUAL REPORT 2009 NAIM HOLDINGS BERHAD 3 our vision To be the leading home builder and contractor in every market in which we operate, and in every aspect of our operations, leading the way in quality, reliability, and value for money. our mission To provide the finest products and services to our customers. To provide increasing value and superior returns for our shareholders. To empower every member of our staff to develop their potential to the maximum. To be a role model customer for our suppliers, sub-contractors and service providers. To contribute meaningfully and positively to the community and the society that nurture us. 4 ANNUAL REPORT 2009 Building vibrant people-friendly communities constructing national assets with quality and value NAIM HOLDINGS BERHAD 5 valuing our customers More than anybody else it is • We are prudent with our clients’ • Our projects are always fully our customers who contribute money; in some cases we are even integrated with all necessary amenities able to refund clients from the savings and attractive layout and landscaping, to the Naim Group’s success. we have made. so that buyers buy into vibrant living Therefore we go to great lengths • We are completely transparent in our communities. to appreciate them and give them corporate governance and financial • Naim homes are always finished the quality, value and efficient disclosure; every decision and every to the highest possible standards Sen is fully disclosed and accounted commensurate with price. service they deserve. for. • When costs go up we trim our margins • We offer innovative solutions to rather than increase prices or reduce Our Construction Clients clients’ problems, which add value to quality, in order that our customers their projects. keep faith with us. Our construction clients, so far, are • We follow up on all our developments mostly Government Departments. But at With the successful introduction of our with on-site security and on-site after Naim we are fully aware that it is not the Zero Defects Policy during 2009, and our sales service and maintenance. Government’s money they are spending ongoing efforts to improve all our business • We maintain a warm and friendly but yours and ours, as we all contribute processes, we confidently expect to be relationship with our buyers, through to government revenue in one way or able to offer our clients even better community events and activities another. Therefore we do our level best quality and value in the future. designed to raise their quality of life. to give value to the taxpayer, through • We are the most reliable developer enhanced quality, rapid completion of Our Property Buyers in our region for rapid and timely projects, innovative solutions and prudent completion and issuance of COF. project financing. And most importantly The overwhelming majority of our property we liaise closely with our clients’ buyers are making the single biggest As a result of these strategies, Naim representatives throughout the duration of investment of their entire lives, and we homes enjoy above average resale values, the projects, keeping them fully updated are therefore morally obliged to ensure low defect rates, and happy families on every development. they get the best that we can offer. as occupants. With the introduction of Our reputation for reliable and timely our unique 2-year Extended Warranty, This policy has resulted in a number of completion of new homes is one of the which applies to all new properties, we positive benefits to our clients; best in our industry, and we do our utmost are confident that we now offer the best to ensure the quality and value of Naim overall value of any developer in Malaysia. • Projects are always completed on time homes. and frequently ahead of schedule. • Our quality always matches or exceeds We are committed to taking care of our the client’s specifications, which is buyers, and we achieve this through a confirmed by the many prestigious variety of strategies; quality awards we have received. 2009 at a glance Financial Performance % Change From 2008 Revenue (RM’000) 566,920 + 8.25 Profit Before Tax (RM’000) 115,532 + 10.76 Net Profit Attributable to Equity Holders of the Company (RM’000) 84,981 + 5.24 Total Assets (RM’000) 1,057,162 + 10.59 Shareholders’ Equity (RM’000) 652,363 + 11.01 Earnings Per Share (sen) 35.85 + 7.59 NA Per Share (sen) 260.94 + 11.18 Return On Equity (%) 13.03 - 5.17 Gross Dividend (sen) 8.00 - 38.46 Gross Dividend Yield (%) 2.72 ** ** Gross Dividend Yield for 2008 was 9.03%. Effect of % change in yield is not presented. Investor Relations Service Financial Calendar The Group maintains a website (www.naim.com.my) which Financial Year End 31 Dec 2009 provides detailed information on the Group’s operations and latest developments. For further details, please contact:- Announcement of Results 1st quarter 26 May 2009 Senior Director, Corporate Services & Human Resource 2nd quarter 26 Aug 2009 Tel : +6082-411667 3rd quarter 17 Nov 2009 Fax : +6082-429869 4th quarter 24 Feb 2010 E-mail : [email protected] Notice of Annual General Meeting 26 May 2009 Annual General Meeting 18 June 2009 First Interim Single-tier Declaration 26 Aug 2009 Dividend Book closure 15 Sept 2009 Ex-date 11 Sept 2009 Payment 28 Sep 2009 Second Interim Declaration 24 Feb 2010 Single-tier Dividend Book closure 16 March 2010 Ex-date 12 March 2010 Payment 14 April 2010 NAIM HOLDINGS BERHAD 7 10-year financial highlights