COVER RATIONALE COLOURING YOUR LIFE UEM Sunrise is more than a master planner or property developer. In each of our project, we seek to add value to the communities that will eventually populate our buildings, our residential precincts, commercial centres, industrial zones and townships. This we do by respecting the natural environment and ensuring our developments are sustainable. We add colour to the lives of our communities through product designs that promote greater social interaction, physical recreation and spiritual well-being. Our aim is to build wholesome communities supported by smart infrastructure and strengthened by a network of vibrant activity in a conducive setting. One such community is Estuari Gardens, as portrayed on the cover of our Annual Report 2015. The 47.62 acres Estuari Gardens is the first parcel of the overall landed Estuari development located on the north side of Puteri Harbour in Iskandar Puteri (formerly known as Nusajaya). It comprises double storey super-link houses designed to provide a resort living experience within nature’s embrace and is inspired by the scenic mangrove belt of Sungai Perapat nearby that meanders along the Straits of Tebrau, Johor, emanating the joys of living within a larger-than-life ecosystem. UEM Sunrise is the flagship company for township and property development businesses of UEM Group Berhad (“UEM Group”) which is celebrating its 50th anniversary in 2016. UEM Group is an engineering-based infrastructure and services group with an established track record and global operations. It has the ability, expertise and resources to deliver key infrastructure development projects for the public and private sectors spanning expressways, bridges, buildings, urban transits, water infrastructure, airports, hospitals, township & property development and asset & facility management services. 2015 INSIDE THIS HIGHLIGHTS REPORT 2015 Highlights OVERVIEW 002 Vision & Mission 088 Statement of Value Revenue Awarded 002 Living Our Values Added & Distribution 003 Notice of Annual 089 Summarised Group Builder of General Meeting Balance Sheet the Year 008 Statement 090 Five-Year Financial Accompanying Review of the Group 2015 Notice of Annual 091 Employees & RM General Meeting Productivity by Frost & Sullivan 009 Financial Calendar 093 Share Price & Volume 2015 Traded 011 Investor Relations SUSTAINABILITY REPORT KEY MESSAGES 1.75 094 Sustainability Report billion 017 Chairman’s 096 Economic Statement Impact 023 Management 100 Environmental Discussion & Impact Analysis 104 Social Impact 039 2016 Outlook AccOUNTABILITY Ranked Approximately CORPORATE FRAMEWORK 108 Statement on Corporate Governance 040 Corporate Profile 138 Additional Compliance 042 Corporate Information th Information 140 Audit Committee 043 Group Corporate Report 7 Structure 148 Statement on Risk 044 Organisation Management and Top Property Developer by 13, Internal Control Structure The Edge Malaysia 153 Risk Management 046 Event Highlights Report 2015 058 Media Highlights 000 2015 FINANCIAL STATEMENTS Trésor card 060 Awards & 156 Financial Statements members Recognitions 2015 OTHER INFORMATION LEADERSHIP 276 Analysis of 065 Board of Directors’ Shareholdings Profile 279 Material Properties of 074 Senior Leadership UEM Sunrise Berhad Team Group Dedicated Total Dividend 281 Recurrent Related PERFORMANCE Party Transactions Employees Pay-Out REVIEW 285 Corporate Directory 085 Five-Year Financial close to Highlights Form of Proxy 086 Five-Year Group RM Performance 087 2015 Group Quarterly 136.1 Performance million (for financial year 2014 ) UEM Sunrise Berhad VISION Building communities of the future with you and for you. MISSION UEM Sunrise brings together the talented and skilled, the imaginative and the courageous. We create sustainable environments loved by home owners, acclaimed by investors and recognised by the industry. We believe in thinking big and acting quickly to unlock potential; to thrive in a changing world. LIVING OUR VALUES We are an enterprising entity that embraces teamwork, integrity and passion with a focus on success. The key elements of our Values are: • We are enterprising and competitive with a mind-set geared towards creating greater value for our stakeholders. • We practice teamwork, mutual respect, open communications and empowerment while embracing diversity and inclusiveness to foster internal and external collaborations. • We hold true to ethical and professional behaviour to set the highest standards of integrity, honesty and trust. • We are passionate, driven, competent and committed to gain knowledge and improve skill sets to achieve personal growth and exceptional performance. • We achieve success by pushing boundaries, thinking creatively resulting with out-of-the-box innovative ideas and solutions. 02 overview Annual Report 2015 NOTICE OF ANNUAL GENERAL MEETING NOTICE IS HEREBY GIVEN THAT the Eighth Annual General Meeting of the Company will be held at Banquet Hall, Menara Korporat, Persada PLUS, Persimpangan Bertingkat Subang, KM15, Lebuhraya Baru Lembah Klang, 47301 Petaling Jaya, Selangor Darul Ehsan on Monday, 23 May 2016 at 10.00 a.m. for the purpose of transacting the following businesses:- AGENDA 1. To receive the Audited Financial Statements for the financial year ended 31 December 2015 together with the Reports of the Directors and Auditors thereon. As Ordinary Business 2. To approve the payment of a first and final single tier dividend of 1.6 sen per ordinary share of RM0.50 each for the financial year ended 31 December 2015. Ordinary Resolution 1 3. To re-elect the following Directors who are retiring in accordance with Article 85 of the Company’s Articles of Association and, being eligible, have offered themselves for re-election:- (i) Lim Tian Huat Ordinary Resolution 2 (ii) Dato’ Srikandan Kanagainthiram Ordinary Resolution 3 (iii) Ungku Suseelawati Ungku Omar Ordinary Resolution 4 4. To re-elect the following Directors who are retiring in accordance with Article 92 of the Company’s Articles of Association and, being eligible, have offered themselves for re-election:- (i) Subimal Sen Gupta Ordinary Resolution 5 (ii) Zaida Khalida Shaari Ordinary Resolution 6 5. To consider and, if thought fit, to pass the following resolution pursuant to Section 129(6) of the Companies Act, 1965:- “THAT Professor Philip Sutton Cox, who retires in accordance with Section 129(2) of the Companies Act, 1965, be and is hereby re-appointed as a Director of the Company in accordance with Section 129(6) of the Companies Act, 1965 to hold office until the conclusion of next Annual General Meeting.” Ordinary Resolution 7 overview 03 UEM Sunrise Berhad NOTICE OF ANNUAL GENERAL MEETING 6. To approve the payment of Directors’ fees for the financial year ending 31 December 2016 on a quarterly basis as follows:- (i) Directors’ fees amounting to RM210,000 per annum for the Non-Executive Chairman and RM108,000 per annum for each Non-Executive Director; (ii) Directors’ fees amounting to RM50,000 per annum for the Non-Executive Audit Committee Chairman and RM30,000 per annum for each Non-Executive Audit Committee member; and (iii) Directors’ fees amounting to RM25,000 per annum for the Non-Executive Committee Chairman and RM15,000 per annum for each Non-Executive Committee member of other Committees. Ordinary Resolution 8 7. To re-appoint Messrs Ernst & Young as Auditors and to authorise the Directors to fix their remuneration. Ordinary Resolution 9 As Special Business To consider and, if thought fit, to pass the following resolutions, with or without modifications:- 8. PROPOSED AUTHORITY TO ALLOT SHARES PURSUANT TO SECTION 132D OF THE COMPANIES ACT, 1965 “THAT pursuant to Section 132D of the Companies Act, 1965, the Directors be and are hereby authorised to allot and issue shares in the Company at any time and upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion deem fit, provided that the aggregate number of shares issued pursuant to this resolution does not exceed 10% of the issued capital of the Company as at the date of this Annual General Meeting (“AGM”) and that the Directors be and are also empowered to obtain the approval for the listing of and quotation for the additional shares so issued on Bursa Malaysia Securities Berhad and that such authority shall continue to be in force until the conclusion of the next AGM of the Company.” Ordinary Resolution 10 9. PROPOSED RENEWAL OF SHAREHOLDERS’ MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE “THAT pursuant to paragraph 10.09 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, approval be and is hereby given for the renewal of the shareholders’ mandate for the Company and/or its subsidiaries (“UEM Sunrise Group”) to enter into recurrent related party transactions of a revenue or trading nature (“Proposed Renewal of Shareholders’ Mandate”), which are necessary for the day-to-day operations of UEM Sunrise Group to be entered into by UEM Sunrise Group provided such transactions are in the ordinary course of business and are on terms not more favourable to the related party than those generally available to the public, particulars of which are set out in Items 1A and 1B of Appendix I of the Circular to Shareholders of the Company dated 29 April 2016 AND THAT such approval conferred by the shareholders’ mandate shall continue to be in force until:- (a) the conclusion of the next Annual General Meeting (“AGM”) of the Company following this AGM at which