Bursa Malaysia Securities Berhad Listing Requirements Compliance Information

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1 Bursa Malaysia Securities Berhad Listing Requirements Compliance Information The information set out below is disclosed in compliance with the Listing Requirements of Bursa Malaysia Securities Berhad ( Bursa Securities ). (i) Utilisation of Proceeds Raised from Corporate Proposals There was no corporate proposal to raise proceeds during the financial year ended 31 December The proceeds raised from corporate proposals in the previous years had been fully utilised for working capital purpose. Disclosed in accordance with Appendix 9C, Part A, item 13 of the Listing Requirements of Bursa Securities. (ii) Share Buy-Back There were no shares buy-back during the financial year ended 31 December As at 31 December 2012, a total of 1,014,600 LPI Shares were held as treasury shares in accordance with Section 67A Subsection (3A)(b) of the Companies Act, None of the treasury shares were cancelled during the financial year ended 31 December Disclosed in accordance with Appendix 12D and Paragraph of the Listing Requirements of Bursa Securities. (iii) Options or Convertible Securities LPI has not issued any options or convertible securities during the financial year ended 31 December Disclosed in accordance with Appendix 9C, Part A, item 15 of the Listing Requirements of Bursa Securities. (iv) Depository Receipt Programme LPI did not sponsor any depository receipt programme during the financial year ended 31 December Disclosed in accordance with Appendix 9C, Part A, item 16 of the Listing Requirements of Bursa Securities. (v) Sanctions and/ or Penalties There were no sanctions and/ or penalties imposed on LPI and its subsidiary company ( LPI Group ), directors or management by the relevant regulatory bodies during the financial year ended 31 December Disclosed in accordance with Appendix 9C, Part A, item 17 of the Listing Requirements of Bursa Securities. 272 LPI Capital Bhd ANNUAL REPORT 2012

2 Bursa Malaysia Securities Berhad Listing Requirements Compliance Information (cont d) (vi) Non-audit Fees The amount of non-audit fees paid to external auditors by the LPI Group for the financial year ended 31 December 2012 amounted to RM107,000. Disclosed in accordance with Appendix 9C, Part A, item 18 of the Listing Requirements of Bursa Securities. (vii) Variation in Results There was no profit forecast issued by the LPI Group during the financial year ended 31 December Disclosed in accordance with Appendix 9C, Part A, item 19 of the Listing Requirements of Bursa Securities. (viii) Profit Guarantee There were no profit guarantees given by the LPI Group during the financial year ended 31 December Disclosed in accordance with Appendix 9C, Part A, item 20 of the Listing Requirements of Bursa Securities. (ix) Material Contracts There were no material contracts entered into by the LPI Group involving directors and major shareholders interests either still subsisting at the end of the financial year ended 31 December 2012 or entered into since the end of the previous financial year. Disclosed in accordance with Appendix 9C, Part A, item 21 of the Listing Requirements of Bursa Securities. (x) Recurrent Related Party Transactions LPI did not seek any mandate from its shareholders as required under Paragraph 10.09(2)(b), Part E of Chapter 10 of the Listing Requirements of Bursa Securities as the recurrent related party transactions of a revenue or trading nature entered into by LPI Group qualified as exempted transactions as defined under Paragraph 10.08(11)(e), Part E of Chapter 10 of the Listing Requirements of Bursa Securities. Disclosed in accordance with Paragraph 10.09(2)(b) of the Listing Requirements of Bursa Securities. the art of transforming strengths 273

3 Malaysian Economy: Review and Outlook I. Global Perspective: II. Malaysian Economy: Review 274 Although the year began on a positive note, the global economic environment remained challenging in Global growth picked up moderately in the first quarter of 2012, partly due to the easing of financial stress and improving investor confidence in the euro area following several policy actions taken by the leaders of the European Union ( EU ). The improved United States of America ( US ) economy supported by private domestic spending, the rebound in Japan due to robust domestic demand and strong expansion in economic activities in Asia, spurred by the resumption of supply chain disruptions caused by the Thai floods in late 2011 also contributed to the global growth in the first quarter. However, the growth momentum could not be sustained in the following three quarters. In the EU, the unresolved sovereign debt problem led to the escalation of financial stress in the region. Contagion of the crisis from the periphery to the core continued to weigh on the region s growth. Concerns were raised about the ability of policymakers to implement structural reforms to stimulate growth. To support the economy, the European Central Bank announced further monetary easing measures aimed at repairing the monetary transmission mechanism. Growth has also slowed in the US, undermined by high unemployment and weak consumption. This has prompted another round of policy stimulus by the US Federal Reserve. Besides the unconventional monetary easing measures undertaken by central banks in the major advanced economies, interest rates have been kept at historic low level to support growth. Sluggish growth in the major advanced economies has slowed growth in Asian economies through the trade channel. The weak external demand has undermined confidence and dragged down domestic demand in countries such as the People s Republic of China, Republic of Korea and Chinese Taipei. Amid heightened risks from the external environment, several central banks in the region eased monetary policies and undertook fiscal measures to spur economic activity. However, growth in many ASEAN economies such as Malaysia, Indonesia and Thailand has remained healthy, partly supported by higher government spending and strong domestic demand. LPI Capital Bhd ANNUAL REPORT 2012 Despite the increasingly challenging global economic conditions, performance of the Malaysian economy in 2012 remained respectable. Growth continued to be driven by resilient domestic demand amid a slowdown in the external sector. Underpinning the growth, the economy continued to be supported by strong fundamentals such as moderate inflation, stable employment condition and high reserves as well as accommodative fiscal and monetary policies. For 2012, the economy is expected to grow by 4.5% to 5%. Although growth had moderated due to the weaker external environment, real gross domestic product ( GDP ) continued to sustain a growth of above 5% in the first three quarters of 2012 (Table 1). Supported by continued strong domestic demand, real GDP grew by 5.2% in the third quarter of 2012, led by healthy growth in private consumption and investment activity. Growth in private consumption was supported by stable labour market condition and sustained income growth, and the expansion in private investment was backed by ongoing implementation of the Economic Transformation Programme ( ETP ) and robust construction activity. On the supply side, most economic sectors moderated in the third quarter of 2012, with the services, manufacturing and construction sectors continued to provide impetus to growth (Table 2). The manufacturing sector continued to be supported by strong growth of the domestic-oriented industries, in particular the construction-related industries amid a slowdown in the export-oriented industries, largely due to weak electronics and electrical products sub-sector. Table 1 Malaysia: Real GDP by Expenditure Components, (at constant 2005 prices) % Annual Change Q 2Q 3Q Aggregate Domestic Demand Consumption Private sector Public sector Gross Fixed Capital Formation Exports of Goods and Services Imports of Goods and Services GDP Source: Department of Statistics, Malaysia, Gross Domestic Product, Third Quarter 2012.

4 Malaysian Economy: Review and Outlook (cont d) Table 2 Malaysia: Real GDP by Economic Activity, (at constant 2005 prices) % Annual Change Q 2Q 3Q Agriculture Mining Manufacturing Construction Services GDP Source: Department of Statistics, Malaysia, Gross Domestic Product, Third Quarter Despite strong domestic demand, inflation remained moderate in Headline inflation had continuously eased from 2.7% in January 2012 to 1.3% in November 2012, largely due to deceleration in food and transport prices (Graph 1). The unemployment rate remained low in the range of 2.7% to 3.2% during the year (Graph 2). Graph 1 Malaysia: Headline Inflation, % change, y-o-y Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Source: Department of Statistics, Malaysia, Consumer Price Index, various issues. Graph 2 Malaysia: Unemployment Rate, Banking System Backed by high capitalisation, ample liquidity and strong asset quality, the banking sector remained strong and sound, and was supportive of the Malaysian economy. The risk-weighted capital ratio ( RWCR ) and the core capital ratio of the banking system remained high at 15.3% and 13.4%, respectively in November 2012 (Graph 3). Gross impaired loans ratio remained low, falling from 2.7% in January 2012 to 2.1% in November 2012 (Graph 4). The loan-to-deposit ratio sustained at 78.4% at end- November 2012 (Graph 5). Despite the moderation in economic activity, lending activities remained healthy, with annual growth of loans to households and businesses was steady at 11.2% in November 2012 (Graph 6). The banking sector continued to tap on stable retail deposits to fund lending business. Annual deposit growth stood at 11.3% in November 2012 (Graph 7). Graph 3 Banking System: Capital Strength, 2012 % RWCR Jan Feb Mar Apr May Jun Jul Core Capital Ratio Aug Sep Oct Nov Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November Graph 4 Banking System: Gross Impaired Loans Ratio, % of labour force % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Source: Department of Statistics, Malaysia, Principal Statistics of Labour Force, October Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November the art of transforming strengths 275

5 malaysian economy: Review and Outlook (cont d) Graph 5 Banking System: Loan-Deposit Ratio, 2012 % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November Graph 6 Banking System: Loan Growth, 2012 % change, y-o-y Total Households Businesses Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November Graph 7 Banking System: Deposit Growth, insurance and Takaful sector The insurance and takaful sector remained resilient with a strong capital adequacy ratio of 218.6% and a capital buffer in excess of RM20 billion in the third quarter of During the quarter, the life insurance and family takaful businesses recorded higher excess of income over outgo amounted to RM5.2 billion. The operating profit of general insurers and general takaful was stable, totalling RM688 million in the third quarter of 2012 (Table 3). The life insurance segment continued to register higher premiums, underpinned by sustained demand for investment-linked and protection products. The general insurance segment continued to be largely supported by healthy motor business and sustained premiums from marine, aviation and transit businesses. Table 3 insurance and Takaful sector: Profitability, Rm million q 4q 1q 2q 3q life insurance & family Takaful Excess of Income Over Outgo 1, , , , ,240.7 General insurance & General Takaful Operating Profit Source: Bank Negara Malaysia, Quarterly Bulletin, various issues. 18 % change, y-o-y Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November LPI Capital Bhd ANNUAL REPORT 2012

6 Malaysian Economy: Review and Outlook (cont d) Monetary Policy Amidst the global economic slowdown and increased financial volatilities and uncertainties, monetary policy continued to be supportive in providing a conducive environment to promote growth, while managing inflationary risks and avoiding financial imbalances. Bank Negara Malaysia ( BNM ) left its Overnight Policy Rate ( OPR ) unchanged at 3% since May 2011 (Graph 8). In line with the unchanged OPR, the key lending rates (Graph 9) and the deposit rates were stable (Graph 10). The Statutory Reserve Requirement was kept steady at 4% since July Graph 8 Malaysia: Bank Negara Malaysia Overnight Policy Rate, % Jan'11 Mar May Jul Sep Nov Jan'12 Mar May Jul Sep Nov Source: Bank Negara Malaysia, Monetary Policy Statements. Graph 9 Malaysia: Lending Rates of Commercial Banks, 2012 % Base Lending Rate Average Lending Rate Graph 10 Malaysia: Deposit Rates of Commercial Banks, 2012 % Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November Fiscal Policy 3-month Fixed Deposit Rate Jan Feb Mar Apr May Jun Jul Savings Rate Aug Sep Oct Nov Given the slowdown in the global economy and weak external demand, especially due to the weakness in the advanced economies, the Government had taken policy initiatives to sustain growth in the short term as well as facilitate the long-term transformation of the economy. At the same time, the Government remained committed to lower its fiscal deficit from 4.8% of GDP in 2011 to 4.5% in 2012 (Graph 11). In the third quarter of 2012, Federal Government s external debt remained low at 1.8% of GDP. Graph 11 Malaysia: Federal Government Fiscal Balance, % of GDP e Note: e Estimate Source: Ministry of Finance, Malaysia, Economic Report, 2012/ Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November the art of transforming strengths 277

7 Malaysian Economy: Review and Outlook (cont d) 278 Monetary Aggregates Monetary aggregates continued to grow in tandem with the expansion in economic activity. In November 2012, narrow money or M1 increased by 8.1% and broad money or M3 expanded by 10.7% (Graph 12). The growth in M3 reflected continued extension in credit to private sector and net foreign inflows. Graph 12 Malaysia: Monetary Aggregates, 2012 % change, y-o-y Jan Feb Mar Apr May Jun Jul Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November External Position M1 LPI Capital Bhd ANNUAL REPORT 2012 Aug Sep Oct Nov In line with the moderation in trade activities and continued services deficit, the current account surplus of the balance of payments narrowed to 4.2% of gross national income ( GNI ) in the third quarter of 2012 (Table 4). Malaysia s international reserves remained strong at US$139.7 billion as at end-december The level of reserves was sufficient to finance 9.5 months of retained imports and was 4.2 times the short-term external debt (Graph 13). Total external debt of the country was at 28.4% of GNI as at end-september Table 4 Malaysia: Current Account Balance, M Q 4Q 1Q 2Q 3Q Current Account Balance (RM billion) % of GNI Source: Bank Negara Malaysia, Quarterly Bulletin, Third Quarter Graph 13 Malaysia: International Reserves, 2012 USD billion Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Bank Negara Malaysia, Press Statements on International Reserves. Ringgit Exchange Rate The performance of the ringgit was largely influenced by external factors, including foreign capital inflows, concerns over the prolonged euro area debt crisis and macroeconomic measures in the global and regional economies. From January 2012 to December 2012, the ringgit appreciated against the US dollar (3.9%), euro (1.8%) and Japanese yen (15.2%), but depreciated against the pound sterling (-0.9%). Against the regional currencies, the ringgit strengthened against the Indonesian rupiah (9.5%), Chinese renminbi (2.6%) and Thai baht (0.2%), but weakened against the Singapore dollar (-2.4%), Philippine peso (-2.7%) and Korean won (-4.2%). III. Prospects, 2013 Global Economy: Growth to Remain Weak and Fragile Outlook for the global economic environment remains uncertain as growth in major advanced economies is likely to remain weak and fragile. The global economy continues to be fraught with risks arising from continued policy uncertainties in several key advanced economies as policymakers in these economies face the challenging task of weighing crucial decisions on issues of fiscal consolidation and key reforms to address structural weaknesses that hinder economic recovery. While implementing a solution to the euro area crisis will take time, concerns remain in respect of the fiscal health in the US although some measures have been instituted to address the fiscal cliff issues. Uncertainty surrounding the

8 Malaysian Economy: Review and Outlook (cont d) advanced economies will continue to constrain confidence and economic activity, with financial conditions to remain fragile and unemployment to stay elevated. Economic weakness in the major advanced economies is expected to continue to weigh on growth in Asia s tradeoriented economies through the softening of exports growth. However, growth is expected to remain relatively solid in many emerging Asia economies, underpinned by healthy labour market and sustainable domestic demand. Furthermore, most Asian economies have room to counteract external shocks with fiscal and monetary policy. Malaysia: Sustaining Domestic Demand Despite the more challenging global economic environment, outlook for the Malaysian economy is expected to remain favourable, with growth projected at % in Domestic demand will continue to be the growth driver, supported by strong private consumption and private investment (Table 5). Stable labour market, moderate inflation and higher income will further support private consumption. Measures under 2013 Budget such as cash handouts and tax revision on individual income will also help boost consumption. Private investment will continue to be buoyed by the implementation of projects under the ETP, the 10th Malaysia Plan ( 10MP ) and 2013 Budget. Ongoing liberalisation in the services sector, together with initiatives to further promote public-private sector partnership in the implementation of the National Transformation Policy as well as initiatives to further provide assistance to small- and medium-sized enterprises will further boost investment activities in Table 5 Malaysia: Real GDP by Expenditure Components, 2013 (at constant 2005 prices) % Annual Change Aggregate Domestic Demand 5.6 Consumption 4.2 Private sector 5.7 Public sector -1.2 Gross Fixed Capital Formation 9.3 Exports of Goods and Services 2.8 Imports of Goods and Services 3.6 GDP On the supply side, growth is expected to remain broadbased (Table 6). The construction sector is expected to remain strong, underpinned by the acceleration of major construction-related projects under the ETP and 10MP. The manufacturing sector will continue to be supported by strong domestic-oriented industries and some recovery in the export-oriented industries. Strong domestic economic activities and sustained intraregional trade will continue to spur growth in the services sector. Table 6 Malaysia: Real GDP by Economic Activity, 2013 (at constant 2005 prices) % Annual Change Agriculture 2.4 Mining 2.7 Manufacturing 4.9 Construction 11.2 Services 5.6 GDP Source: Ministry of Finance, Malaysia, Economic Report, 2012/ Although domestic economic activity is expected to expand further in 2013, inflation is expected to increase only moderately given the excess capacity in the economy. However, there remain upside risks to inflation in the event of supply disruptions that could lead to higher global prices for commodities. Inflation is expected to increase between 2% and 3% in Monetary policy will remain accommodative to support growth. Prospects for the Malaysian insurance industry remain encouraging. The low insurance penetration rate, continued economic expansion, growing number of affluent populace, rising household income and innovation in insurance products and services will continue to spur growth of industry. In addition, the implementation of the Financial Sector Blueprint which includes efforts to promote diversification of insurance products and expansion of the takaful industry will further boost the Malaysian insurance industry. Continued initiatives to enhance regulation and supervision by Bank Negara Malaysia will further strengthen the insurance sector for sound capital and risk management. Source: Ministry of Finance, Malaysia, Economic Report, 2012/ the art of transforming strengths 279

9 Analysis of Shareholdings As At 31 December 2012 Authorised share capital Issued and fully paid-up share capital Class of shares Voting rights RM500,000,000 RM221,323,980 comprising 221,323,980 ordinary shares of RM1.00 each Ordinary shares of RM1.00 each One (1) vote per ordinary share DISTRIBUTION OF SHAREHOLDINGS Shareholders No. of Shares Held Malaysia Foreign Malaysia Foreign Size of Shareholdings No. % No. % No. % No. % Less than 100 shares , ,000 shares 1, , , ,001 10,000 shares 2, ,761, , , ,000 shares ,110, ,586, ,001 to 11,015,468 (less than 5% of issued shares* 1 ) ,262, ,037, ,015,469 (5% of issued shares* 1 ) and above ,182, ,182, Total 4, ,125, ,183, Note: *1 Excluding a total of 1,014,600 LPI Capital Bhd ( LPI ) shares bought-back by LPI and retained as treasury shares as at 31 December LPI Capital Bhd ANNUAL REPORT 2012

10 Analysis of Shareholdings As At 31 December 2012 (cont d) TOP THIRTY SHAREHOLDERS (Without aggregating the securities from different securities accounts belonging to the same Depositor) Name of Shareholders No. of Shares Held % of Issued Shares *1 1. Selected Holdings Sdn Berhad 31,113, Kepunyaan Chintamani Sdn Bhd 26,796, NIPPONKOA INSURANCE CO., LTD. 17,182, Kepunyaan Pejal Sdn Berhad 14,272, Public Invest Nominees (Tempatan) Sdn Bhd Public Bank Group Officers Retirement Benefits Fund 10,425, Maybank Nominees (Tempatan) Sdn Bhd Maybank Trustees Berhad for Public Regular Savings Fund 6,982, Premium Bond Company Limited 4,800, Selected Holdings Sdn Berhad 4,800, HSBC Nominees (Asing) Sdn Bhd BNP Paribas Secs Svs Lux for Aberdeen Global 4,001, HSBC Nominees (Asing) Sdn Bhd BNP Paribas Secs Svs Paris for Aberdeen Asian Smaller Companies Investment Trust Plc 3,200, Kepunyaan Chintamani Sdn Bhd 3,200, Kepunyaan Pejal Sdn Berhad 3,200, Tan Sri Dato Sri Dr. Teh Hong Piow 3,123, Premium Bond Company Limited 3,033, AmanahRaya Trustees Berhad Public Index Fund 2,836, AmanahRaya Trustees Berhad Public Savings Fund 2,790, the art of transforming strengths 281

11 Analysis of Shareholdings As At 31 December 2012 (cont d) Name of Shareholders No. of Shares Held % of Issued Shares* Teo Ah Chiang Kee Foon 1,934, AmanahRaya Trustees Berhad Public Growth Fund 1,852, Citigroup Nominees (Tempatan) Sdn Bhd Employees Provident Fund Board (Aberdeen) 1,832, Premium Bond (M) Sdn Berhad 1,760, NIPPONKOA INSURANCE CO., LTD. 1,720, Tunku Osman Ahmad 1,712, Public Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Consolidated Chan Realty Sdn Bhd (E-KUG) 1,681, AmanahRaya Trustees Berhad Public Dividend Select Fund 1,629, Public Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Ang Beng Poh (BMM) 1,447, Olive Lim Swee Lian 1,400, Public Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Ang Beng Poh (E-BMM) 1,127, HSBC Nominees (Asing) Sdn Bhd BBH and Co Boston for Matthews Asia Small Companies Fund 1,111, GHS Strategic Holdings Sdn Bhd 1,100, AmanahRaya Trustees Berhad Public South-East Asia Select Fund 1,096, Total 163,162, Note: *1 Excluding a total of 1,014,600 LPI Capital Bhd ( LPI ) shares bought-back by LPI and retained as treasury shares as at 31 December LPI Capital Bhd ANNUAL REPORT 2012

12 Analysis of Shareholdings As At 31 December 2012 (cont d) SUBSTANTIAL SHAREHOLDERS as per Register of Substantial Shareholders as at 31 December 2012 Name of Shareholders No. of Shares Held Direct Interests Indirect Interests Total % of Issued Shares* 1 1. Selected Holdings Sdn Berhad 35,913,600-35,913, % 2. Kepunyaan Chintamani Sdn Bhd 29,996,800-29,996, % 3. NIPPONKOA INSURANCE CO., LTD. 18,902,400-18,902, % 4. Kepunyaan Pejal Sdn Berhad 17,472,000-17,472, % 5. Tan Sri Dato Sri Dr. Teh Hong Piow 3,123,200 94,676,800 97,800, % 6. Consolidated Teh Holdings Sdn Berhad 675,200 93,921,600 94,596, % 7. Kayakita Corporation Sdn Bhd - 17,472,000 17,472, % 8. Monivest Sdn Bhd - 17,472,000 17,472, % DIRECTORS SHAREHOLDINGS as at 31 December 2012 Name of Directors No. of Shares Held Direct Interests Indirect Interests Total % of Issued Shares* 1 1. Tan Sri Dato Sri Dr. Teh Hong Piow 3,123,200 94,676,800 97,800, % 2. Tan Sri Datuk Seri Utama Thong Yaw Hong 366, , , % 3. Dato Yeoh Chin Kee 400, , % 4. Mr. Tee Choon Yeow 640, , , % 5. Mr. Tan Kok Guan - 450, , % 6. Dato' Haji Abdul Aziz bin Dato' Dr. Omar Mr. Quah Poh Keat Note: *1 Excluding a total of 1,014,600 LPI Capital Bhd ( LPI ) shares bought-back by LPI and retained as treasury shares as at 31 December the art of transforming strengths 283

13 Authorised and Issued Share Capital AUTHORISED SHARE CAPITAL The authorised share capital as at 31 December 2012 is RM500,000,000 divided into 500,000,000 ordinary shares of RM1.00 each. The changes in the authorised share capital are as follows :- Date Increase in Authorised Share Capital (RM) Total Authorised Share Capital (RM) ,000,000 1,000, ,000,000 5,000, ,000,000 10,000, ,000,000 30,000, ,000, ,000, ,000, ,000,000 ISSUED AND PAID-UP SHARE CAPITAL The issued and paid-up share capital as at 31 December 2012 is RM221,323,980 comprising of 221,323,980 ordinary shares of RM1.00 each. The changes in the issued and paid-up share capital are as follows :- Date of Allotment No. of Shares Allotted Consideration Total Issued and Paid-up Share Capital (RM) Subscribers Shares ,998 Allotment of Shares to Essex Securities Ltd and Montreal Trust Company ,000,000 Bonus Issue 1:2 of 500,000 ordinary shares of RM1.00 each and Allotment of 1,500,000 ordinary shares of RM1.00 each to Kuala Lumpur Holdings Sdn. Berhad, Far Eastern Oriental Sdn. Berhad and Mr. Fred Eu Keng Fai ,000,000 Allotment of ordinary shares of RM1.00 each to Wei Woo Estates & Investment Limited, Hong Kong, in exchange of 6,000,000 shares of HK$1.00 each in Wei Woo Estates & Investment Limited 1,000,000 3,000,000 6,000, ,000,000 Rights Issue 1:3 at RM1.00 8,000, ,000,000 Allotment of 7 1/2% Convertible Preference Shares of RM0.50 each to Selected Holdings Sdn. Berhad ,800,000 Capitalisation of share premium account, capital reserve account and revenue reserve account (Bonus Issue 4:5) ,900,000 Capitalisation of share premium account and revenue reserve account (Bonus Issue 1:2) ,880,000 Capitalisation of unappropriated profits (Bonus Issue 2:5) 11,000,000 19,800,000 29,700,000 41,580, ,880,000 Rights Issue 2:5 at RM ,460, LPI Capital Bhd ANNUAL REPORT 2012

14 Authorised and Issued Share Capital (cont d) Date of Allotment No. of Shares Allotted Consideration Total Issued and Paid-up Share Capital (RM) ,460,000 Capitalisation of share premium reserve account (Bonus Issue 1:1) ,000 Exercise of share options under LPI ESOS at option price of RM2.60 per share ,000 Exercise of share options under LPI ESOS at option price of RM2.60 per share ,739,000 Subscription of new ordinary shares of LPI by NIPPONKOA INSURANCE CO., LTD. at RM3.81 per share ,000 Exercise of share options under LPI ESOS at option price of RM3.29 per share ,117,000 Exercise of share options under LPI ESOS at option price of RM3.29 per share ,000 Exercise of share options under LPI ESOS at option price of RM3.29 per share ,237,000 Exercise of share options under LPI ESOS at option price of RM3.29 per share ,857,000 Exercise of share options under LPI ESOS as follows :- - 1,773,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows : ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows : ,000 shares at option price of RM3.29-4,000 shares at option price of RM ,000 shares at option price of RM ,545,000 Exercise of share options under LPI ESOS as follows :- - 1,050,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows : ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,583,000 Exercise of share options under LPI ESOS as follows : ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,920, ,355, ,398, ,137, ,610, ,727, ,159, ,396, ,253, ,872, ,793, ,338, ,318, ,901,000 the art of transforming strengths 285

15 Authorised and Issued Share Capital (cont d) Date of Allotment No. of Shares Allotted Consideration Total Issued and Paid-up Share Capital (RM) ,257,000 Exercise of share options under LPI ESOS as follows : ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,653,000 Exercise of share options under LPI ESOS as follows :- - 94,000 shares at option price of RM ,000 shares at option price of RM3.76-4,888,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 27,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 3,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 1,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 3,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM3.66-8,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,158, ,811, ,246, ,438, ,368, ,656, LPI Capital Bhd ANNUAL REPORT 2012

16 Authorised and Issued Share Capital (cont d) Date of Allotment No. of Shares Allotted Consideration Total Issued and Paid-up Share Capital (RM) ,000 Exercise of share options under LPI ESOS as follows :- - 42,000 shares at option price of RM ,000 shares at option price of RM3.66-3,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 1,000 shares at option price of RM ,000 shares at option price of RM5.94-3,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 26,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 55,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM6.29-3,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 3,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM3.66-1,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,834,150 Capitalisation of share premium reserve account (Bonus Issue 1:2) 137,927, ,950, ,011, ,176, ,723, ,557, ,766,830 Rights Issue 1:10 at RM ,323,980 the art of transforming strengths 287

17 Analysis Particulars of The of Financial Property Statements Held (cont d) by The Group Location Units 02-39, 02-41, and Goldhill Plaza Newton Road Singapore Description 2 nd floor of 6 storey building Current use Rented out to third parties Tenure Leasehold 999 years Remaining lease period (Expiry date) 958 years (26 February 2971) Age of property 41 years Built-up area 4,952 sq. ft Net book value RM15,857,400 Date of acquisition 26 February 1972 Date of last revaluation 30 November LPI Capital Bhd ANNUAL REPORT 2012

18 international Network cambodia malaysia singapore the art of transforming strengths 289

19 290 Group Corporate Directory Head Office 6 th Floor, Bangunan Public Bank, 6, Jalan Sultan Sulaiman, Kuala Lumpur, Malaysia. Tel No. : (603) / Fax No. : (603) SUBSIDIARY LONPAC INSURANCE BHD Head Office LG, 6 th 7 th, 21 st 26 th Floor, Bangunan Public Bank, 6, Jalan Sultan Sulaiman, Kuala Lumpur. P.O. Box Kuala Lumpur. Tel No. : (603) / Fax No. : (603) / / / / / / Website : NORTHERN REGION Head of Northern Region: Mr. James Kong Wai Mun Tel No. : (605) Fax No. : (605) / jameskong@lonpac.com Alor Setar Branch No. 4 & 5, 2 nd Floor, No. 55, Bangunan Emum 55, Jalan Gangsa, Kawasan Perusahaan Mergong 2, Alor Setar, Kedah. Mr. Beh Seng Tong Tel No. : (604) / Fax No. : (604) stbeh@lonpac.com Penang Branch Ground & 1 st Floor, Wisma Giap Chew, No. 28, Lebuh Gereja, Penang. Ms. Lillian Koh Gim Ping Tel No. : (604) Fax No. : (604) lilliankoh@lonpac.com LPI Capital Bhd ANNUAL REPORT 2012 Taiping Branch 1 st Floor, No. 9, Persiaran Taiping, Taiping, Perak. Mr. Ong See Boon Tel No. : (605) / Fax No. : (605) sboonong@lonpac.com Sitiawan Branch No. 205 (1 st Floor), Jalan Leo Desa Bintang, Sitiawan, Perak. Mr. Aw Seng Oo Tel No. : (605) / Fax No. : (605) soaw@lonpac.com Ipoh Branch 36, Jalan Dato Onn Ja afar, Ipoh, Perak. Mr. James Kong Wai Mun Tel No. : (605) Fax No. : (605) / jameskong@lonpac.com Central Region Head of Central Region: Mr. Yow Kai Fook Tel No. : (603) Fax No. : (603) kfyow@lonpac.com Kajang Branch No & 13-2, Jalan KP1/3, Kajang Prima, Kajang. Ms. Vivience Lee Sau Fong Tel No. : (603) Fax No. : (603) viviencelee@lonpac.com Klang Branch No. 2-08, 8 th Floor, Menara Empire, Jalan Empayar, off Persiaran Sultan Ibrahim/KU1, Klang Bandar Diraja, Selangor Darul Ehsan. Ms. Ong Joo Gaik Tel No. : (603) Fax No. : (603) jgong@lonpac.com SOUTHERN REGION Head of Southern Region: Mr. Raymond Tan Soo Boon Tel No. : (606) Fax No. : (606) / raymondtan@lonpac.com Seremban Branch No. 6 & 7, Campbell Street, Seremban, Negeri Sembilan. Mr. Gavin Tan Poh Teck Tel No. : (606) Fax No. : (606) pttan@lonpac.com Melaka Branch No. 7 & 9, Jalan Melaka Raya 11, Taman Melaka Raya, Melaka. Mr. Yong Chee Chean Tel No. : (606) Fax No. : (606) / ccyong@lonpac.com Johor State Head of Johor State: Mr. Soh Jiun Hong Tel No. : (607) Fax No. : (607) jhsoh@lonpac.com Segamat Branch No. 24-A, Jalan Genuang Perdana, Taman Genuang Perdana, Segamat, Johor. Mr. Sebastian Tan York Chung Tel No. : (607) / Fax No. : (607) sebastiantan@lonpac.com Batu Pahat Branch 13, Jalan Flora Utama 1, Taman Flora Utama, Batu Pahat, Johor. Ms. Loh Siew Hwee Tel No. : (607) / Fax No : (607) shloh@lonpac.com

20 Group Corporate Directory (cont d) Johor Bahru Branch Suite No , 25 th Floor, Public Bank Tower, No. 19, Jalan Wong Ah Fook, Johor Bahru, Johor. Mr. Soh Jiun Hong Tel No. : (607) Fax No. : (607) jhsoh@lonpac.com Sarawak Region Head of Sarawak Region: Mr. Wong Shon Kwang Tel No. : (6082) Fax No. : (6082) skwong@lonpac.com Kuching Branch Lot 258 & 259, Section 49, KTLD (1 st Floor), Jalan Chan Chin Ann, Kuching, Sarawak. Mr. Wong Shon Kwang Tel No. : (6082) Fax No. : (6082) skwong@lonpac.com Sibu Branch Lot 2402, S/L 5, 1 st Floor, No. 6, Lorong Pedada 20A, Sibu, Sarawak. Mr. Joseph Pang Neng Liong Tel No. : (6084) / Fax No. : (6084) nlpang@lonpac.com Miri Branch Lot 1293, 1 st and 2 nd Floor, Centre Point, Jalan Melayu, Miri, Sarawak. Mr. Desmond Ng Tin Fong Tel No. : (6085) / / Fax No. : (6085) desmondng@lonpac.com SABAH REGION Head of Sabah Region: Mr. Nicholas Wong Kok Choong Tel No. : (6088) / / Fax No. : (6088) nicholaswong@lonpac.com Kota Kinabalu Branch Level 9, Wisma Fook Loi, No. 38, Jalan Gaya, Kota Kinabalu, Sabah. Ms. Veronica Chin Nyuk Lan Tel No. : (6088) / / Fax No. : (6088) veronicachin@lonpac.com Sandakan Branch 4 th Floor, Menara Rickoh, Indah Commercial Complex, Bandar Indah, Mile 4, North Road, Sandakan, Sabah. Mr. Dominic Voo Chen Chung Tel No. : (6089) Fax No. : (6089) dominicvoo@lonpac.com Tawau Branch TB4427 & TB4428, 1 st Floor, Block C, Sabindo Square, Jalan Dunlop, Tawau, Sabah. Mr. Peter Gau Fui Ming Tel No. : (6089) / Fax No. : (6089) petergau@lonpac.com Branch Offices Kuantan Branch B-62B, 1 st Floor, Lorong Tun Ismail 8, Sri Dagangan II, Kuantan, Pahang. Mr. Yong Kim Keong Tel No. : (609) / / Fax No. : (609) kkyong@lonpac.com Kuala Terengganu Branch Lot 5032-B, Jalan Sultan Zainal Abidin, Kuala Terengganu, Terengganu. Encik Yaakub Bin Abu Bakar Tel No. : (609) / Fax No. : (609) yaakubabubakar@lonpac.com Kota Bharu Branch No. PT 285, Tingkat 2, Jalan Kebun Sultan, Kota Bharu, Kelantan. Mr. Won Pier Chyuan Tel No. : (609) / Fax No. : (609) pcwon@lonpac.com Singapore Branch 100, Beach Road #19-00, Shaw Tower, Singapore Principal Officer: Mr. Yap Chee Kiat Tel No. : (02) Fax No. : (02) ckyap@lonpac.com ASSOCIATED COMPANY CAMPU LONPAC INSURANCE PLC Head Office Campu Bank Building 7 th Floor, No. 23, Street 114, Sangkat Phsar Thmey II, Khan Daun Penh, Phnom Penh, Royal Kingdom of Cambodia. P.O. Box 1556 General Manager: Ms. Agnes Chan Weng Yee Tel No. : (855) / / Fax No. : (855) / agnes@campulonpac.com.kh Website : the art of transforming strengths 291