Swissotel Merchant Court 20 Merchant Road Singapore Tel : Fax :

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2 corporate directory Malaysia TA Global Berhad 34th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : TA Properties Sdn Bhd 34th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : TA Gemilang Trading Sdn Bhd 34th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : Ativo Plaza Sdn Bhd 34th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : Indo Aman Bina Sdn Bhd 34th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : Orchard Park Sdn Bhd 34th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : AAVA Malacca Hotel 12 Jalan Kampung Hulu Melaka Malaysia Tel : (Ext. 9708) Singapore Swissotel Merchant Court 20 Merchant Road Singapore Tel : Fax : Thailand Movenpick Resort & Spa Karon Beach 509 Patak Road, Karon Beach Phuket 83100, Thailand Tel : Fax : China Swissotel Kunshan 387 Qianjin Zhong Road Kunshan China Tel : Fax : Australia Radisson BLU Plaza Hotel Sydney 27 O Connell Street, Sydney NSW 2000 Australia Tel : Fax : Ascents Hotel Pty Ltd Trading as The Westin Melbourne 205, Collins Street, Melbourne Victoria 3000, Australia Toll Free : Tel : Fax : Canada Aava Whistler Hotel Limited 4005 Whistler Way, Whistler BC V0N 1B4 Canada Toll Free (US/Canada) : Tel : Fax : TA Management Limited West Georgia Street Vancouver B.C. V6E 4M3 Canada Tel : Fax : taglobal.com.my

3 Contents Notice of Seventh Annual General Meeting Corporate Information Directors Profile Chairman s Statement Corporate Social Responsibility 5-year Group Financial Summary Segmental Analysis Statement on Corporate Governance Report on Audit Committee Statement on Risk Management and Internal Control Statement on Director s Responsibility in relation to the Financial Statements Directors Report Statement by Directors Statutory Declaration Independent Auditors Report Consolidated Statement of Financial Position Consolidated Income Statements Consolidated Statement of Comprehensive Income Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Statement of Financial Position Statement of Comprehensive Income Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements List of Material Properties held by TA Global Berhad Group Analysis of Shareholdings List of Top 30 Shareholders Administrative Details of Seventh Annual General Meeting Form of Proxy

4 Notice of Seventh Annual General Meeting NOTICE IS HEREBY GIVEN THAT THE SEVENTH ANNUAL GENERAL MEETING OF TA GLOBAL BERHAD WILL BE HELD AT THE AUDITORIUM, 10TH FLOOR, MENARA TA ONE, 22 JALAN P. RAMLEE, KUALA LUMPUR ON WEDNESDAY, 29 JULY 2015 AT 9.30 A.M. FOR THE FOLLOWING PURPOSES: AGENDA AS ORDINARY BUSINESSES To receive the Audited Financial Statements for the year ended 31 January 2015 and the Reports of the Directors and Auditors thereon. To approve a final single tier dividend of 2% for the year ended 31 January To re-elect the following Directors: (a) Datuk Tiah Thee Kian who retires by rotation in accordance with Article 64 of the Company s Articles of Association. (b) Mr Christopher Koh Swee Kiat who retires by rotation in accordance with Article 64 of the Company s Articles of Association. (c) Datin Rahmah Binti Mahmood who retires by rotation in accordance with Article 64 of the Company s Articles of Association. To consider and, if thought fit, to pass the following Ordinary Resolution pursuant to Section 129(6) of the Companies Act, 1965:- THAT Dato Sri Mohamed Bin Abid who retires pursuant to Section 129(2) of the Companies Act, 1965, being over the age of seventy (70) years, be and is hereby re-appointed as Director of the Company to hold office until the conclusion of the next Annual General Meeting. To approve the payment of Directors fees of RM120, for the year ended 31 January To appoint Messrs KPMG as Auditors of the Company until the conclusion of the next Annual General Meeting and to authorize the Directors to fix their remuneration. Notice of Nomination pursuant to Section 172(11) of the Companies Act, 1965, a copy of which is annexed hereto as Annexure A, has been received by the Company for the nomination of Messrs KPMG who have given their consent to act, for appointment as Auditors and of the intention to propose the following ordinary resolution:- THAT Messrs KPMG be and are hereby appointed as Auditors of the Company in place of the retiring Auditors, Messrs Ernst & Young, to hold office until the conclusion of the next Annual General Meeting at a remuneration to be agreed between the Directors and Auditors. Please refer to Note A Resolution 1 Resolution 2a Resolution 2b Resolution 2c Resolution 3 Resolution 4 Resolution 5 AS SPECIAL BUSINESS To consider and if thought fit, to pass the following Ordinary Resolution: 7. Authority to Issue Shares pursuant to Section 132D of the Companies Act, 1965: THAT subject always to the Companies Act, 1965, the Articles of Association of the Company and the approvals of the relevant government/regulatory authorities, the Directors be and are hereby empowered pursuant to Section 132D of the Companies Act, 1965 to further allot and issue ordinary shares in the Company from time to time upon such terms and conditions and for such purposes as the Directors may deem fit Resolution 6 2 TA Global berhad Annual Report 2015

5 Notice of Seventh Annual General Meeting provided that the aggregate number of shares to be allotted and issued pursuant to this resolution does not exceed ten percent (10%) of the total issued share capital of the Company in any one financial year and that such authority shall remain in force until the conclusion of the next Annual General Meeting of the Company. 8. To transact any other business of which due notice shall have been received. NOTICE OF DIVIDEND ENTITLEMENT NOTICE IS HEREBY GIVEN THAT the final single tier dividend of 2% for the year ended 31 January 2015, if approved by the shareholders at the Company s Seventh Annual General Meeting, will be paid on 19 August 2015 to members whose names appear in the Company s Register of Members at the close of business on 4 August A depositor shall qualify for entitlement only in respect of: Shares transferred to the depositor s securities account before 4.00 p.m. on 4 August 2015 in respect of ordinary transfers; Shares deposited into the depositor s securities account before p.m. on 31 July 2015 (in respect of shares exempted from mandatory deposit); and Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of Bursa Malaysia Securities Berhad. BY ORDER OF THE BOARD CHUAH WEN PIN (MAICSA ) SUSEELA SUNDRAM (BC/S/139) TAN KIT YEE (MAICSA ) Secretaries 30 June 2015 Notes: A) Item 1 of the Agenda This Agenda item is meant for discussion only, as the provision of Section 169(1) of the Companies Act, 1965 does not require a formal approval of the shareholders for the Audited Financial Statements. Hence, this Agenda item is not put forward for voting. 1. Members Entitled To Attend For purpose of determining who shall be entitled to attend this meeting, only members whose names appear on the Record of Depositors as at 30 June 2015 (General Meeting Record of Depositors) shall be entitled to attend, speak and vote at this Annual General Meeting or appoint proxy/proxies to attend and/or vote on his behalf. 2. Appointment of Proxy (a) (b) A member entitled to attend and vote at this meeting is entitled to appoint a proxy or proxies (but not more than two) to attend and vote in his stead. A proxy may but need not be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company. A proxy appointed to attend and vote at a meeting of the Company shall have the same rights as the members to speak at the meeting. Where a member of the Company is an authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991, ( SICDA ) it may appoint at least one proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account. TA Global berhad Annual Report

6 Notice of Seventh Annual General Meeting (c) (d) (e) (f) Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities account ( omnibus account ), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds. An exempt authorised nominee refers to an authorised nominee defined under SICDA which is exempted from compliance with the provisions of subsection 25A(1) of SICDA. This Form of Proxy, in the case of an individual, shall be signed by the appointor or his attorney and in the case of a corporation, shall be given under its common seal or signed on its behalf by an attorney or officer of the corporation so authorised. Where a member appoints more than one proxy, the appointment shall be invalid unless he specifies the proportion of his holdings to be represented by each proxy. The Form of Proxy must be deposited with the Share Registrar of the Company at Tricor Investor Services Sdn Bhd at Level 17, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Kuala Lumpur not less than forty-eight (48) hours before the time for holding the meeting or any adjournment thereof. Explanatory Note on Special Business: 1. Resolution 6: Authority to Issue Shares pursuant to Section 132D of the Companies Act, 1965 This is the renewal of the mandate obtained from the members at the last Annual General Meeting ( the previous mandate ). The previous mandate was not utilised and accordingly no proceeds were raised. The proposed Ordinary Resolution 6, if passed, will empower the Directors of the Company to issue and allot shares in the Company up to an amount not exceeding ten percent (10%) of the issued capital of the Company for the time being. This authorisation will provide flexibility to the Directors to undertake fund raising activities, including but not limited to placement of shares for the funding of the Company s future investment projects, working capital, acquisitions and/or implementation of Employees Share Option Scheme by the issuance of shares in the Company to such persons at any time as the Directors may deem fit, without having to convene a general meeting. This authority unless revoked or varied at a general meeting will expire at the next Annual General Meeting of the Company. STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING (pursuant to Paragraph 8.27(2) of Bursa Malaysia Securities Berhad Main Market Listing Requirements) There is no Director standing for election at the Seventh Annual General Meeting of the Company. 4 TA Global berhad Annual Report 2015

7 TA Enterprise Annexure A Date: 19 June 2015 The Board of Directors TA GLOBAL BERHAD 34 th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Dear Sirs, NOTICE OF NOMINATION OF AUDITORS Pursuant to Section 172(11) of the Companies Act, 1965, we, being a shareholder of TA Global Berhad, hereby give notice of our intention to nominate Messrs KPMG for appointment as Auditors of TA Global Berhad in place of the retiring Auditors, Messrs Ernst & Young and of our intention to propose the following as an ordinary resolution to be tabled at the forthcoming Annual General Meeting of TA Global Berhad:- THAT Messrs KPMG be and are hereby appointed as Auditors of the Company in place of the retiring Auditors, Messrs Ernst & Young, to hold office until the conclusion of the next Annual General Meeting at a remuneration to be agreed between the Directors and Auditors. Yours faithfully, For and on behalf of TA ENTERPRISE BERHAD DATIN TAN KUAY FONG Managing Director & Chief Executive Officer TA Enterprise Berhad ( M) Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel Fax TA Global berhad Annual Report

8 corporate information Board of Directors Datuk Tiah Thee Kian Datin Tan Kuay Fong Dato Sri Mohamed Bin Abid Kimmy Khoo Poh Kim Zainab Binti Ahmad Peter U Chin Wei Jory Leong Kam Weng Christopher Koh Swee Kiat Datin Rahmah Binti Mahmood Executive Chairman Non-Independent Non-Executive Director Executive Director Executive Director Non-Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Company Secretaries Chuah Wen Pin (MAICSA ) Tan Kit Yee (MAICSA ) Suseela Sundram (BC/S/139) Registered Office 34th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : Audit Committee Peter U Chin Wei - Chairman Jory Leong Kam Weng Member Christopher Koh Swee Kiat Member Share Registrar Tricor Investor Services Sdn Bhd ( V) Level 17, The Gardens North Tower Mid Valley City, Lingkaran Syed Putra Kuala Lumpur Tel : Fax : Auditors Ernst & Young Stock Exchange Listing Main Market of Bursa Malaysia Securities Berhad Stock Code TA Global berhad Annual Report 2015

9 Yg Bhg Datuk Tiah Thee Kian, aged 68, a Malaysian, is the Executive Chairman of TA Global Berhad. He was appointed to the Board of TA Global Berhad on 8 August He holds a Bachelor of Science from University of Malaya and a Master in Business Management from Asian Institute of Management, Philippines. He started his career as a manager of Malaysian International Merchant Bankers Bhd from 1972 to 1978, and later joined Credit Leasing Corporation Sdn Bhd as an Executive Director from 1978 to He joined TA Securities Berhad in September 1987 and was appointed the Managing Director in September 1988 and thereafter, Executive Chairman in July He is the Chairman of the Company s Property Management Committee, Tender Committee and Treasury Investment Committee. He is the husband of Yg Bhg Datin Tan Kuay Fong, Non-Independent Non-Executive Director of the Company. He has attended all five of the Board Meetings held during the financial year. Yg Bhg Datuk Tiah Thee Kian Executive Chairman In 1990, he initiated the public listing of TA Enterprise Berhad and was appointed its Executive Chairman and Managing Director of TA Enterprise Berhad in October As the Executive Chairman, he is primarily responsible for the overall strategic direction of TA Enterprise Berhad. He is the visionary leader of TA Group. Armed with a vision in developing a Malaysian one-stop supermarket of financial products and services, he propelled TA Enterprise Berhad s extraordinary growth in retail broking and shaped TA Enterprise Berhad to be one of the largest retail broker in Malaysia. Datuk Tiah Thee Kian was the one who embarked the TA Group into property development. He was instrumental in amassing the strategic land banks and investment properties of TA Global Berhad. In 2009, he initiated the demerger of the financial services and property business of TA Enterprise Berhad to improve the execution capacity of the property business in pursuing its strategies in a more focused way. Pursuant to the listing of TA Global Berhad, he took the helm as its Executive Chairman and spent a major portion of his time in nurturing, developing and transforming the property development and property investments activities of TA Global Berhad. He is the substantial shareholder and co-founder of TA Global Berhad. He also sits on the Boards of a number of companies within the TA Global Berhad Group. Under the stewardship and leadership of Datuk Tiah Thee Kian, both TA Enterprise Berhad and TA Global Berhad became a dynamic and diversified conglomerate with businesses in stockbroking, asset and unit trust management, futures & derivatives trading, credit lending, hotel operations, property development, property management and property investments spread over Malaysia, Canada, Australia, Hong Kong, China and Thailand. TA Global berhad Annual Report

10 Yg Bhg Datin Tan Kuay Fong, aged 64, a Malaysian, is the Non-Independent Non-Executive Director of TA Global Berhad. She holds a Bachelor of Economics (Honours) Degree and a Post Graduate Diploma in Accounting from the University of Malaya. She started her profession as stockbroking in In 1983, she was one of the pioneer founders of A.T. Securities Sdn Bhd, the first stockbroking company to be established in Shah Alam. In December 1987, she joined TA Securities Sdn Bhd and was appointed the Managing Director of TA Securities Berhad in July Pursuant to the listing of TA Enterprise Berhad, she was appointed as Executive Director of TA Enterprise Berhad in March 1990 and subsequently in May 2002, she was appointed as its Executive Chairman. She was re-designated as Managing Director & Chief Executive Officer of TA Enterprise Berhad in August She was instrumental in the growth and development of TA Enterprise Berhad s financial services businesses during its formation years. In the l990s, Datin Tan Kuay Fong revolutionised the stockbroking business of TA Enterprise Berhad by taking the bold step to build up its IT infrastructure and employed IT programmers and system analysts to design and tailor specific back office IT systems and controls to provide its remisiers and clients with a more efficient platform to trade with greater accuracy and efficiency. She was also instrumental in developing the proprietary trading activates of TA Enterprise Berhad, expanding its retail market, building up its remisiers/ dealers base to enlarge its retail clientele and to expand its business. She has over 25 years of senior management experiences in stockbroking, derivatives and property management. Her experience and expertise incorporates strategic planning, initial business set-up, operations planning and implementation, international business expansion and overall business management. Her financial services career track record has been charted through the years, made possible through her in-depth exposure to the stockbroking industry and financial markets. She now continues to impart her business acumen and skills to the growth and development of TA Enterprise Berhad s financial services business. She was appointed as Director of TA Global Berhad on 8 August 2008 but was re-designated as the Non-Independent Non-Executive Director on 5 October 2009 and held the position till to-date. She is the co-founder of TA Global Berhad. She also sits on the Boards of a number of companies within the TA Global Berhad Group. She is the wife of Yg Bhg Datuk Tiah Thee Kian, Executive Chairman and a substantial shareholder of the Company. She has attended all five of the Board Meetings held during the financial year. Yg Bhg Datin Tan Kuay Fong Non-Independent Non-Executive Director 8 TA Global berhad Annual Report 2015

11 Yg Bhg Dato Sri Mohamed Bin Abid, aged 72, a Malaysian, is the Executive Director of TA Global Berhad. He studied Business Management at The MARA Institute of Technology and was admitted as a Member of the British Institute of Management. He was conferred the award of Sri Sultan Ahmad Shah Pahang by His Royal Highness the Sultan of Pahang in October 2008, that carries the title Dato Sri. He started his career as a Shipping Executive and was later promoted to Manager in P & O Steam Navigation Co. Ltd, Singapore & London from 1964 to In 1974, he joined MISC Coastal Services Sdn Bhd, a wholly-owned subsidiary of MISC Berhad as Marketing Manager and was promoted to Director/Chief Executive Officer in 1980, a position he held till He has extensive experience in the shipping industry and has held various senior positions, both locally and abroad. Over the years, his established network of local and international business contacts have been invaluable to the growth and development of the TA Group. In addition, he has also actively been involved in building the corporate as well as public image of the TA Group of Companies. He has attended all five Board Meetings held during the financial year. Subsequently, he was appointed Chief Executive Officer of MISC Agencies Sdn Bhd until In 1987, he was appointed as Managing Director of East & West Maritime Sdn Bhd. In 1989, he established JB Distripark Sdn Bhd and held the position of Executive Director. He then joined the Board of TA Enterprise Berhad, a public listed company as Executive Director on 1 July He was re-designated as the Non-Independent Non-Executive Director of TA Enterprise Berhad on 5 October 2009 and holds the position to-date. Subsequently, he was appointed as Executive Director of TA Global Berhad on 5 October He also sits on the Boards of a number of companies within the TA Global Berhad Group. He is also the Chairman of Advisory Board of Tesco Stores (Malaysia) Sdn Bhd since Yg Bhg Dato Sri Mohamed Bin Abid Executive Director TA Global berhad Annual Report

12 Ms Kimmy Khoo Poh Kim, aged 51, a Malaysian, is the Executive Director of TA Global Berhad. She graduated with a Bachelor of Arts (Hons) Degree from the University of Malaya in 1986 and was admitted as an Affiliate Member of the Malaysian Institute of Chartered Secretaries and Administrators in She also holds a Company Secretary License issued by the Companies Commission of Malaysia since She started her career in stockbroking in 1986 with A.T. Securities Sdn Bhd and joined TA Securities Sdn Bhd in In her 12 years with TA Securities, she gained vast and extensive experience in securities operations, business development and management. She was one of the pioneer key management staff charged to spearhead the various operational and system reengineering of the TA Securities Berhad in its formation years. In August 1999, she was seconded to TA Enterprise Berhad as Group General Manager and oversees the group s risk management, corporate development and management of TA Enterprise Berhad. She was actively involved in the establishment of various operation and management systems, controls and policies for the subsidiaries of TA Enterprise Berhad. In 2004, she was appointed as Executive Director of TA Properties Sdn Bhd, a wholly-owned subsidiary of TA Global Berhad and is primarily responsible for the corporate planning, hospitality, property acquisition and systems control and management functions of TA Properties Sdn Bhd. In 2009, she spearheaded the public listing of TA Global Berhad and was appointed its Executive Director on 5 October As its Executive Director, she currently manages the day-to-day operations, systems control and management functions of TA Global Group and oversees the Group s property development and offshore properties located in Canada, Australia, Singapore, China and Thailand. With her knowledge and experience with cross-border investments and hotel property acquisitions, she is personally involved in the negotiation, due diligence, structuring and financing process in the acquisition of properties for TA Global Berhad, both locally and overseas. She also sits on the Boards of a number of companies within TA Global Berhad Group. She is the member of the Company s Property Management Committee and Tender Committee. She is the sister-in-law of Yg Bhg Datuk Tiah Thee Kian and Yg Bhg Datin Tan Kuay Fong. She has attended all five Board Meetings held during the financial year. Ms Kimmy Khoo Poh Kim Executive Director 10 TA Global berhad Annual Report TA Global berhad Annual Report 2015

13 Puan Zainab Binti Ahmad, aged 63, a Malaysian, is the Non-Independent Non-Executive of TA Global Berhad. She holds a Bachelor in Business Administration Degree from the Institut Teknologi Mara/University of Ohio. She started her career in June 1983 with A.T. Securities Sdn Bhd as the General Manager. She then joined TA Securities Sdn Bhd as Director in December 1987 till October She was then appointed as Executive Director of TA Enterprise Berhad in March 1990, a position she holds to-date. Thereafter, she was appointed to the Board of TA Global Berhad as Non-Independent Non-Executive Director on 5 October She also sits on the Boards of TA Centre Berhad and TA Investment Management Berhad, public companies which are wholly-owned subsidiaries of TA Enterprise Berhad, the Company s holding company respectively and a number of companies within the TA Enterprise Berhad Group. She has attended all five of the Board Meetings held during the financial year. Pn Zainab Binti Ahmad Non-Independent Non-Executive Director Mr Peter U Chin Wei, aged 64, a Malaysian, is the Independent Non-Executive Director of TA Global Berhad. He is a Fellow of the Institute of Chartered Accountants in England and Wales and also a member of the Malaysian Institute of Accountants. Before returning to Malaysia, he worked in the London office of Coopers and Lybrand (now known as PricewaterhouseCoopers). Upon his return to Malaysia in 1977, he worked for Inchcape Malaysia Sdn Bhd, YTL Group and he joined the MUI Group in 1980 until 1989 as General Manager. He joined the Board of AsiaPac Bhd (formerly known as Pegi Malaysia Berhad) as an Executive Director in 1989 till Thereafter, he joined TA Enterprise Berhad as an Executive Director in October 1990 till October Subsequently, he was appointed as an Independent Non-Executive Director of TA Enterprise Berhad, a public listed company in July 1999, a position he holds to-date. He was then appointed to the Board of TA Global Berhad as Independent Non-Executive Director on 5 October He also sits on the Boards of Kumpulan Europlus Berhad, a public listed company and Asian Outreach (M) Berhad, a public company. He is the Chairman of the Company s Audit Committee, Nomination Committee and Remuneration Committee. He has attended all five of the Board Meetings held during the financial year. Mr Peter U Chin Wei Independent Non-Executive Director TA Global berhad Annual Report

14 Mr Jory Leong Kam Weng, aged 51, a Malaysian, is an Independent Non-Executive Director of TA Global Berhad. He graduated with a Bachelor of Economics Degree and a Bachelor of Laws Degree from Monash University, Australia. He is a Fellow of CPA Australia and a Chartered Accountant of the Malaysian Institute of Accountants. He is also a certified mediator on the panel of the Malaysian Mediation Centre. He was called to the Malaysian Bar in In February 1992, he joined TA Enterprise Berhad as the Group Legal Manager until July He was the Vice President of International Division of TA Enterprise Berhad from November 1993 to October Between November 1995 to February 1997, he held the position of General Manager / Director of Credit Leasing Corporation Sdn Bhd. He also held the post of Executive Director of TA Bank of Philippines, Inc from March 1997 to June From June 1998 to July 1999, he was the Chief Executive Officer of TA Securities Berhad. Since July 1999, he has been a Partner of Messrs Iza Ng, Yeoh & Kit as a practising Advocate and Solicitor. He was appointed as Independent Non-Executive Director of TA Global Berhad on 5 October 2009, a position he holds to-date. He is also an Independent Non-Executive Director of TA Enterprise Berhad and Xin Hwa Holdings Berhad, companies listed on Bursa Malaysia. He also sits on the Board of several private companies and of Pecca Group Berhad, Asian Outreach (M) Berhad and Pusat Penyayang KSKA, all of which are public limited companies. He is a member of the Company s Audit Committee, Nomination Committee and Remuneration Committee. He has attended all five Board Meetings held during the financial year. Mr Jory Leong Kam Weng Independent Non-Executive Director 12 TA Global berhad Annual Report TA Global berhad Annual Report 2015

15 Mr Christopher Koh Swee Kiat, aged 47, a Malaysian, is the Independent Non-Executive Director of TA Global Berhad. He graduated from the University of Malaya in 1992 and was called to the High Court of Malaya as an Advocate and Solicitor in March He also holds an ACCA postgraduate diploma in Accounting and Finance. He was previously attached with the Corporate Department of Messrs Chooi & Company. Thereafter, he joined TA Securities Berhad as Assistant Manager in November He was appointed the Head of Legal Affairs Department in November He has negotiated and prepared the legal documentation for the various overseas ventures of the company including a bank and stockbroking companies in various countries. He was also the Company Secretary of The Chase Manhattan (M) Berhad (now known as JP Morgan Chase). In 2001, he was the Vice President for MasterCard International in its Asia Pacific regional office in Singapore. He joined Messrs Chris Koh & Chew (formerly known as GH Tee & Co), Advocates & Solicitor in October He was appointed as Independent Non-Executive Director of TA Enterprise Berhad, a public listed company in May 2006, a position he holds to-date. Thereafter, on 5 October 2009, he was appointed to the Board of TA Global Berhad as Independent Non-Executive Director. He specialises in corporate, commercial and finance matters including merger and acquisitions, corporate restructuring, joint ventures, corporate finance, listing of companies, private equity acquisition and matters relating to aviation laws. Now also an Independent Non-Executive Director of the Company, his scope of responsibilities includes extending legal advice and assisting in the acquisition of business interests on behalf of the Company. He also sits on the Board of TA Investment Management Berhad, a public company which is a wholly-owned subsidiary of TA Enterprise Berhad, the Company s holding company. He is a member of the Company s Audit Committee, Nomination Committee and Remuneration Committee.He also sits on the investment committee of Mizuho ASEAN Investment Fund LLP. He has attended all five of the Board Meetings held during the financial year. Mr Christopher Koh Swee Kiat Independent Non-Executive Director TA Global berhad Annual Report

16 Yg Bhg Datin Rahmah Binti Mahmood, aged 57, a Malaysian, is the Independent Non-Executive Director of TA Global Berhad. She graduated with a double Bachelor of Science degree in both Marketing and Mass Communications from Syracuse University, New York. She also obtained a Master in Journalism (PR) from the University of Southern California (USC). She started her own automotive spares manufacturing company, Malaysian Automotive Lighting Sdn Bhd ( Malaysian Automotive ) about 20 years ago in Penang with Robert Bosch Gmbh as the initial partners and later with Magnetti Mirelli of Italy. Malaysian Automotive is now a global manufacturing partnership with Automotive Lighting Reutlingen Gmbh, Germany, manufacturing automotive head lamps and rear lamps for companies such as Proton, Perodua, Suzuki, Mazda and other international car manufacturers and currently she is the Director and shareholder of Malaysian Automotive She is also the Chairman and Managing Director of Syarikat Mahmood Ambak & Sons Sdn Bhd since 1988, a trading company supplying automotive spares to the Ministry of Defence of Malaysia and the Royal Malaysia Police for the last 20 years. She was then appointed to the Board of TA Enterprise Berhad, a public listed company in August 2007, a position she holds to-date. Subsequently, she was appointed as Independent Non-Executive Director of TA Global Berhad on 5 October She also sits on the Board of Xin Hwa Holdings Berhad, a public listed company. She has also diversified her business dealings into Independent Environmental Monitoring and sits on the Boards of Spanfield Sdn Bhd and Clearwater Towers Sdn Bhd, an environmental company. Currently, she is looking into being involved in renewable energy such as solar energy and other manufacturing concerns in Malaysia through a company, Solarah Sdn Bhd. She is also a director of Intelligent Power Systems Technology Sdn Bhd, a company involve in solar panel installations and advice. She has over 25 years of experience in business management, contract negotiations and manufacturing practices. She also has assisted the Malaysian government in bringing in foreign investment into the country especially in the field of manufacturing. She has attended all five Board Meetings held during the financial year. Notes : 1. Family Relationship of Directors Save as disclosed, none of the directors has any family relationship with any director and/major shareholder of the Company. 2. Conflict of Interest Save as disclosed, none of the Directors has any conflict of interest with the Company. 3. Conviction of Offence Save as disclosed, none of the Directors has been convicted of any offence in the past 10 years. 4. Interest in Securities The particulars of the Directors interest in securities of the Company are set out in pages 53 and 54. Yg Bhg Datin Rahmah Binti Mahmood Independent Non-Executive Director 14 TA Global berhad Annual Report TA Global berhad Annual Report 2015

17 Chairman s Statement On behalf of the Board of Directors of TA Global Berhad ( TAG ), it is my pleasure to present to you, the Seventh Annual Report and Financial Statements of the Group and the Company for the financial year ended 31 January DATUK TIAH THEE KIAN EXECUTIVE CHAIRMAN In 2014, we increased our Group s land bank by acquiring a 13.6 hectare rare oceanfront residential development in Little Bay, one of the last prime coastal areas in Sydney s eastern suburb. This 13.6 hectare land will give us the sole right and interest to develop the entire Little Bay Cove Project in Sydney, Australia comprising of 580 houses, townhouses and apartments. In Malaysia, we completed our acquisition of 83 acres freehold commercial land in Bandar Serendah, Daerah Ulu Selangor, Negeri Selangor Darul Ehsan in February In March 2015, we further increased our existing land bank in Bandar Serendah by acquiring acres of freehold vacant commercial land in Bandar Serendah. The acres of land are within close proximity to the 1,022.6 acres of freehold commercial and agriculture land in Bandar Serendah currently owned by our associate company in which we have a 25% interest. In March 2015, we divested our 25% interest in Oaxis Sdn Bhd, a company which is planning the development of 92 acres of leasehold land in the matured Puchong township named as The Peninsular and recorded an investment return of 59.76%. FINANCIAL REVIEW Despite the challenges in 2014, I am pleased to report that TAG has successfully achieved an impressive financial growth for the financial year under review. The Group s turnover for the financial year increased by 9.9% from RM692.4 million in FYE 2014 to RM761 million in FYE This resulted in an achieved profit before tax of RM204.3 million, which was an increase of 74.91% from FYE 2014 profit before tax. This stellar increase in profit for the FYE 2015 was mainly due to financial debt recovery of RM113.0 million recognized for the year. The other divisions within the Group also posted higher profit before tax as compared to the previous year. Our earnings per share increased to 2.76 sen compared to 2.13 sen for the FYE The main revenue and profit contributor for the year is from the hotel operations and property development divisions. Although the revenue from hotel operations decreased by 3.1% as compared to last year, the hotel operations managed to remain profitable by registering an increase of 54.5% in profits amounting to RM81 million. This increase in profit is mainly from our hotels in Singapore and Australia. The property development turnover increased by 95.92% amounting to RM201.2 million, while its profit increased by 31.9% amounting to RM33.2 million. The substantial increase in the property development division is mainly contributed by the completion and handover of our residential project in Malaysia and Canada. Contribution from Property Investment Division registered an increase of 77.2% from RM5.4 million to RM9.6 million mainly due to lower operating costs. Geographically, 29.9% of our profit before tax comes from Australia, while Singapore and Malaysia contributed 15.92% and 49.63% respectively. TA Global berhad Annual Report

18 Chairman s Statement DIVIDEND The Board is pleased to propose a final single tier dividend of 2% or 1 sen per ordinary share for the FYE 31 January 2015 pending shareholders approval. Dividend payout policy of the Company continues to remain at 20% to 50% of its profit after tax. PROPERTY DEVELOPMENT MALAYSIA Although residential properties transacted in Malaysia registered a flat growth in 2014, the performance is considerably satisfactory given the slew of macro-prudential measures introduced since 2010 and the notable surge in transacted value. The increase in residential transactions of 14% from RM72.1 billion in 2013 to RM82.1 billion in 2014 was mainly due to higher selling prices rather than higher transactions. In the 4th quarter of 2014, the Malaysian Housing Price Index (HPI) recorded a moderate growth of 7.0% as compared to the 4th quarter of This was a significant moderation compared to the record high of 12.2% year over year growth reported in the 3rd quarter of In the past, the government and Bank Negara Malaysia would only introduce new cooling measures when the property prices deviate far away from their long term average growth of 5.5%. The year 2015 will consequently be in the spot light fuelled by factors such as the implementation of Goods & Services Tax ( GST ), continued fluctuation of oil prices and the tightening of credit lines from Bank Negara Malaysia. Whilst the short term outlook is cautious, the long term sentiment of the market is expected to deliberate assimilation of the property prices but on this context, the overall outlook remains optimistic for the year. Damansara Avenue, Petaling Jaya Damansara Avenue is our visionary masterpiece of business, leisure and residential amidst a 7-acre urban park, alfresco dining outlets and commercial retail. Damansara Avenue is poised to be a brand new township in Petaling Jaya sprawled over 48 acres of freehold land comprising of high end residences, retail outlets, lifestyle offices and malls which will be inter-connected by covered walkways, underground linkages and surrounded by parks and play areas. This integrated development is expected to fetch a gross development value ( GDV ) of approximately RM3.8 billion over the next ten years. Azelia Residence, our 1st residential project in Damansara Avenue comprising 250 units of Service Apartments with an estimated GDV of RM207 million is 95% sold to date and the aforesaid project was completed and handed over to the purchasers in June Ativo Plaza and Azelia Residence were recently awarded the Honour Awards for Landscape Design of the ILAM Malaysia Landscape Architecture Awards Our next residential project in the pipeline is Ativo Suites which is located on a 2.83 acres site adjacent to Ativo Plaza. This project comprises of 668 units of Service Apartments housed in two iconic towers with an estimated GDV of RM450 million. Ativo Suites is expected to be launched in the 4th quarter of To further enhance the retail section of Ativo Plaza, we intend to develop the land situated between Ativo Plaza, Azelia Residence and Ativo Suites into Ativo Annexe, an integrated development with office and residential elements above the street mall retail plaza that features a jungle walk with lush landscaping. On completion, Ativo Annexe will be seamlessly connected to Ativo Plaza, Azelia Residence and Ativo Suites. TA 3 & 4 TA 3 & TA 4, our 2.47 acres of commercial land fronting the iconic KLCC Twin Towers is envisaged to be the category defining luxury residential and commercial project. The project will be an allurement to luxury products that will complement the high end couture brands located in Suria KLCC Mall. TA 3 & TA 4 comprising of a twin 50-storey building will house a 5-star hotel and branded serviced residences with 4-levels of podium comprising retail, F&B outlets and lifestyle facilities. The project is expected to take 6 years to complete and upon completion, it will register a GDV of approximately RM1.376 billion. The piling and basement carcass works of TA 3 & 4 site commenced on 3 March The construction of the sub-structure works is expected to be completed in Final negotiations with an international hotel chain to brand and operate the hotel and serviced residences are currently underway. 16 TA Global berhad Annual Report 2015

19 Chairman s Statement Nova Square, Bukit Bintang Located right in the heart of Kuala Lumpur s Golden Triangle, Nova Square is a acres freehold mixed development consisting of 2 towers of iconic lifestyle residences and 1 tower of luxury hotel with F&B and entertainment outlets at the ground floor. It is immensely accessible via the Smart Tunnel, Jalan Tun Razak and Jalan Ampang to other parts of Kuala Lumpur and Selangor. The Development Order for this project is pending approval from the local authorities. The expected GDV for this project is approximately RM1.85 billion. Dutamas, Kuala Lumpur This strategic 4.55 acres of freehold land is nestled in the vicinity of the exclusive and affluent enclave of Mont Kiara, Sri Hartamas and Kenny Hills. The Development Order has been approved by the local authorities for 2 blocks of condominium which consist of 364 units of residences. This exclusive low density development has an estimated GDV of RM489 million and the project is targeted to be launched in the 4th quarter of Nusa Lagenda, Bandar Saujana Putra With a 50% stake in Prominent Xtreme Sdn Bhd, TA will be jointly developing 255 units of apartments on 2 parcels of leasehold land measuring 4.25 acres at Bandar Saujana Putra, Selangor. The project is still in its early planning stage and the estimated GDV is RM99.5 million. CANADA Trump International Hotel & Tower Vancouver - Vancouver, Province of British Columbia, Canada Trump International Hotel & Tower Vancouver is an iconic 63-storey mixed-use tower comprising a luxury hotel with 147 guest suites, 217 high-end residential suites, a 4-level podium and an 8-level underground car park. The luxury hotel boasts facilities such as a champagne lounge, a signature restaurant, Trump Spa and also the first pool bar nightclub in Vancouver. Above the hotel will be 217 stylish residences, offering residents spectacular views of the City, the North Shore, and beyond. The iconic twisting tower design of this building is an architectural expression by the lauded Canadian architect, Arthur Erickson. The twisting design of the tower maximizes the window views in every suite. Every unit is distinctive with no two views exactly alike because of this unique design. Trump International Hotel & Tower Vancouver, being one of the few approved high-density developments in downtown Vancouver will upon completion stand at 616 feet, transforming the city's skyline as the second tallest building in Vancouver. The total projected GDV of this 63-storey luxury hotel and residences is approximately CAD496 million. Construction work commenced in April 2012 and has since been progressing in accordance to schedule. As at end of January 2015, the construction of the tower has reached Level 61 which is the lower level of the penthouses. The topping-off of the structural work is expected to be completed by March 2015, while the overall completion of the building is anticipated to be in mid The sales of the residential suites have been encouraging with total sales of 68.8% valued at CAD233.0 million achieved as of January Efforts are constantly made to market the sales of the remaining suites. Marketing events such as the announcement of Mott 32 of Hong Kong for the restaurant, Drais of Las Vegas for the nightclub, and the new Equinox Gym of LA for Fortis BC will generate a lot of buzz and expected to help expedite sales. The latest total sales of the residential suites is 88% valued at CAD323.6 million as at 30 April Trump International Hotel & Tower Vancouver TA Global berhad Annual Report

20 Chairman s Statement AUSTRALIA Little Bay Residential Development Project, Sydney, New South Wales In May 2014, the Group acquired the 13.6 hectare rare ocean front land in Little Bay to develop 582 houses and apartments with an estimated GDV of AUD600.0 million. Little Bay Cove is envisaged to be one of Sydney s landmark lifestyle residential developments to be delivered progressively in stages over the next seven years. Set amidst the serenity in the eastern suburb; a coastal haven filled with nature, water and space, situated in lush greenery and landscaping, majority of the land allotments, townhouses, courtyard home and low-rise luxury apartments will have an amazing coastal view. Little Bay Cove has great development potential and prospects as it is the last prime site located in the east approved by the Randwick City Council. It will be the main supply of residential properties in the eastern suburb in the years to come. The estate creation works involving land remediation, earthworks and service infrastructure were completed in the 2nd quarter of The construction of Solis, the estate s first 45-unit residential apartments is on schedule and forecasted for completion in December Solis is fully sold and its GDV is AUD25.8 million. Following the successful launch of Solis, another exciting event will be the launch of Illume comprising of 179 residential apartments fronting the major road of Anzac Parade with breathtaking scenic views of Little Bay waters, Botany Bay and the City. Illume will be launched in 3 consecutive phases in 2015 with the 1st launch in the 2nd quarter of 2015 The Little Bay Cove project is TAG s first foray into residential development in Sydney. With the strong and encouraging demand for residential properties in Sydney driven by low interest rates, housing undersupply in Sydney and rising property prices in Australia, we expect the Little Bay Cove project to contribute significantly towards the future growth of our Property Development Division. PROPERTY INVESTMENTS MALAYSIA Menara TA One, Kuala Lumpur Menara TA One is currently undergoing a RM20 million facelift of its external and internal facade to enhance the image of the building which includes the upgrading of the ground and mezzanine levels, relocation of its main entrance to Jalan P. Ramlee, roof re-designing, new F&B outlets at ground level and roof top, and the upgrading of common corridors and toilet ventilation systems. Approval for renovation works was obtained in July 2013 and works are expected to be completed by March On completion of the upgrading works, we expect the occupancy and rental of Menara TA One to improve significantly and to contribute positively towards the Group s future revenue. Retail and Office Suites at Subang Business Centre (USJ 9) and Taipan USJ 10, Petaling Jaya The retail and office suites at Subang Business Centre and Taipan USJ in Selangor continue to boast 100% occupancy rate and is currently generating good rental income for the Group. Retail units at Ativo Plaza, Damansara Avenue The 43 retail units located on the ground and first floor of Ativo Plaza, the flagship project at Damansara Avenue have been retained by the Group for recurring rental income. Since its completion, these retail units achieved a respectable 91% occupancy rate, providing the surrounding community with amenities such as supermarket, bank and a wide variety of F&B outlets. 18 TA Global berhad Annual Report 2015

21 Chairman s Statement CANADA FortisBC Centre, Vancouver In 2014, FortisBC Centre commenced the construction of the brand new 18,000 square feet glass structure conference facility to be connected to the Trump International Hotel & Tower Vancouver. This conference facility is scheduled to be completed in June 2016 and on completion, the conference facility will be leased to Trump International Hotel & Tower Vancouver. The conference facility is expected to enhance the income yield of FortisBC Center and synergistically improve the connectivity and business activities between FortisBC Center and Trump International Hotel & Tower Vancouver. In addition to this new conference facility, FortisBC center is also scheduled to undergo a major upgrading and interior cab modernization of its elevators in mid of 2015 and this upgrading works is expected to be completed in early The new elevator system will feature a destination dispatch system that will increase their efficiency by 33% and is scheduled to begin operation. These building upgrades have already begun to show their value with 37,400 square feet being pre-leased at lease rates ranging from CAD40.00 CAD per sq. ft. commencing from mid Despite keen competition with an additional one million square feet of newly constructed space entering the market, building occupancy levels of FortisBC Center for 2014 remained in line with 2013 occupancy levels at 85%. The building s average lease rate increased by 18.68% with an overall increase in revenue of CAD426,000. Although the building is currently experiencing lower revenue from its parking and gym facilities because of ongoing construction works, the total revenue for 2015 increased by 3.53% as compared to FortisBC Centre, Vancouver HOTEL OPERATIONS THAILAND Mövenpick Resort & Spa, Karon Beach, Phuket In 2014, Movenpick Resort & Spa recorded an increase in Average Daily Rate ( ADR ) of THB68 but a decline of THB563 in Revenue Per Available Room ( RevPAR ) as compared to The decrease in the RevPAR was due to lower occupancy of 66% which was 14% behind 2013, affected by the Hotel renovation works and the Thai political crisis. With the Thai government extending the visa validity for China visitors to increase the meetings, incentives, conferencing and exhibitions (MICE) and Free Independent Travelers (FIT) business from China, the newly renovated 600-series rooms being converted into more family rooms to attract more families from Australia, Middle East and Asian markets and the conversion of bed configuration from king beds to Hollywood twin beds to support the MICE business, and the new facelift of its F&B outlets at the sea-side entrance of the resort, we expect Movenpick Resort & Spa to experience a healthy performance and profitability growth for The awards won by Movenpick Resort & Spa during the year were the Tripadvisor s Best Family Resort Award, Top Ten Awards by Holidays with Kids, Green Globe Certification renewal and World Travel Award for Thailand s Leading Hotel. AUSTRALIA The closure of the Sydney Convention and Exhibition Centre late last year for redevelopment works with expected completion by late 2016 is likely to drive large-scale conference events to Melbourne this year. Occupancy levels in Melbourne city's five-star venues soared in January, registering double-digit revenue growth per room with an average occupancy of 88.1% for the month boosted by 2 major sports events, the Australian Open and Ashes Cricket Tour. According to the Smith Travel Research (STR)'s figures, the room growth in Melbourne is considerably higher than Sydney's 84.6%. TA Global berhad Annual Report

22 Chairman s Statement Radisson BLU Plaza, Sydney Radisson BLU Plaza performed reasonably well as it completed 2014 with an increase of 2.5% in ADR and 2.4% in RevPAR compared to Occupancy rate for 2014 remained in line with 2013 at 86.9% and the Hotel is trading ahead of its competitive sets by 2%. Despite the challenges faced in the Sydney market, the Hotel successfully exceeded the previous year s total revenue by AUD248,000 and Gross Operating Profit (GOP) by AUD483,000. This stellar performance of the Hotel is mainly contributed by the installation of LED lights and water flow restrictors, which gave the Hotel a cost saving of approximately AUD125,000 in electricity and water bills, relocation of Bistro Fax Restaurant & Bar and the leasing space to Bentley Restaurant & Bar which improved the F&B profitability. Radisson BLU Plaza continues to uphold its award winning records such as Booking.com Award 2014, TripAdvisor Award of Excellence 2014 and EarthCheck Australia Certified Silver Benchmark Status. The Westin Melbourne, Melbourne 2014 was an excellent year for Westin Melbourne. It achieved the highest profit record since its opening in 2000 and once again it was ranked No.1 in its competitive set for market share and RevPAR achievements. The overall occupancy of the Hotel increased from 87.9% to 92.5% while its ADR increased by 0.41%. Its RevPAR was positively driven by occupancy and exceeded last year by AUD Radisson BLU Plaza, Sydney The decision in 2014 to replace the Chanel tenancy with the Dior tenancy with an increase in lettable area by reducing the Lobby Bar area paid off. The change increased the rental revenue of the Hotel and improved the revenue and profit margin for the Lobby Bar. To remain ahead of its competitors, the Hotel will focus on marketing plans which include the social media, campaigns and leverage on the past guests to optimize revenue opportunities and to drive rate through aggressive pricing strategy. CHINA Swissotel Kunshan, China 2014 was a very challenging year for Swissotel Kunshan. The prohibition of five star hotels as venues for meetings and accommodation by the government, cancellation of Beer Festival as well as Mid-Autumn Lantern Festival led to lower transient travels into Kunshan. Coupled with fierce market competition, the Hotel sales performances were affected for the year. In the light of these challenges, Swissotel Kunshan adopted strategies which successfully increased its occupancy by 4,741 room nights as compared to Although its ADR and RevPAR were slightly down by 12.5% and 14.3% for 2014, the Hotel successfully finished ahead of its competitive sets by achieving higher ADR and RevPARs. With the opening of a new national exhibition centre in Hongqiao Shanghai area, we expect the exhibition center to drive new businesses into Kunshan and boost the hotel industry. In preparation for new business opportunities, Swissotel Kunshan will be embarking on the refurbishment of its Executive Level Rooms, Executive Club Lounge and Meeting space in The RMB20.0 million refurbishment programme is expected to be completed by mid-september On completion, the refurbishment will lift Swissotel Kunshan s overall performance and enhance its competitive edge. Swissotel Kunshan, China 20 TA Global berhad Annual Report 2015

23 Chairman s Statement SINGAPORE Swissotel Merchant Court, Singapore Swissotel Merchant Court completed 2014 with an increase of 3.1% in ADR compared to Total revenue declined slightly by 0.6% due to a drop in occupancy rate from 89.9% to 85.4%. The decline in occupancy was mainly attributed to intense competition and a slowdown of visitor arrivals into Singapore. According to STR Global Forecast, Singapore hotels will experience a 1.3% decline in RevPAR in the 1st quarter of 2015 with reduced occupancy and the ADR remaining flat. With more than 3,200 new hotel rooms coming on stream in Singapore in this year, room rates in Singapore are expected to remain very competitive as new players adopt aggressive pricing strategy to build up their base. To defend its market share and to remain competitive, the Hotel will be undertaking a full refurbishment programme of approximately SDG32 million in April 2015 to upgrade its rooms, lobby, conference and F&B areas. This refurbishment programme is expected to be completed in stages over a period of 2 years and on completion in 2017, these enhancements will improve the competitiveness and earnings of the Hotel in the long term. Singapore is expecting to see 4% to 5% climb in visitor arrivals as it celebrates its golden jubilee and also hosting of the South-East Asian Games in We anticipate such events to have a positive impact on the hotel industry and will help sustain the performance of our Hotel for the year. CANADA Aava Whistler Hotel Aava Whistler performed relatively well in financial year 2015 with an increase of CAD886,000 in revenue and a 7% increase in room occupancy as compared to previous year. August 2014 was a most memorable month as it achieved the highest occupancy at 96% since its opening in ADR and RevPAR grew by 3% and 15% on year over year basis respectively. GOP margin also increased significantly from 28.2% to 36.9%. During the financial year 2015, Aava Whistler hosted the Crankworx, BC Bike Race and Whistler s newest festival GO Fest, and has successfully built a reputation as the best place to stay for the Mountain Bikers and serious athletes. This recognition will bring new group business to the hotel for the future. Riding on the success of hosting such events, the Hotel will continue to explore and work in line with key festivals and events to boost the visibility of the Hotel and to bring more year round business. CORPORATE GOVERNANCE Corporate governance is pivotal to our Group s growth and development as it s the framework in attainting our Group s objectives. We will continue to strive to have a high level of transparency and corporate governance within our Group s practices, processes and relations. We advocate encompassing appropriate corporate governance practices in every sphere of our management, from action plans, internal controls to performance measurement and corporate disclosures. PROSPECTS AND OUTLOOK Malaysia is expected to face a challenging period in 2015 with the sharp correction in commodity prices and ringgit depreciation affecting exports. While the removal of fuel subsidies and the implementation of GST are expected to cushion the blow from revenue loss to a certain extent, GST may cause a dent in private consumptions and investments. As such, we expect Gross Development Profit (GDP) growth to moderate to 5.1% in 2015 versus 6% in 2014, supported by domestic demand and potential pickup in electronic and electrical exports in the 2nd half of 2015 as the cheaper ringgit versus regional currencies provides some competitive advantage. Going into 2015, the outlook of the local property market is expected to be less robust due to lingering effects of property cooling measures, stricter lending requirements by the financial institutions, weak market sentiments arising from the implementation of GST as well as less robust stock market. While the slowdown in residential property market with fewer activities in both primary and secondary are widely anticipated, we do not expect residential property prices to suffer from a severe reduction in capital value due to the value boost driven by mega infrastructure projects such as MRT/LRT/BRT and KL-Singapore High Speed Rail and the long-term inflationary pressure arising from cost push factors such as GST implementation and subsidy cuts. Furthermore, we do not expect any new harsh cooling measures from policy makers in 2015 given that the previous measures appeared to have achieved their intended effects. TA Global berhad Annual Report

24 Chairman s Statement On a broader perspective, the mega infrastructure projects, which will collectively improve and enhance accessibility and connectivity within Greater Kuala Lumpur, will transform the region into a world-class metropolis. This bodes well for the country s economy and business environment as it continues to attract more foreign investments. Despite oversupply concerns, we expect the office market outlook in the Klang Valley to remain stable, with Grade A office in the city centre highly sought after by multinational corporations. Meanwhile, the hotel and service residences segment should benefit from an influx of foreign direct investors, expatriates and Malaysia My Second Home (MM2H) participants as Malaysia has been ranked as the 19th most desired destination for expatriates from 34 countries, according to The Expat explorer 2014 survey commissioned by HSBC Expat. In addition, the weakening of Ringgit made the country appealing not only for investments but also as an affordable travel destination for both leisure and business purposes, which will spur the demand of hotel rooms. With the strategic location of our land banks in the Klang Valley in close proximity to the LRT/MRT stations, we expect Menara TA One and our to be launch property development projects like TA3 & TA4, Dutamas and Damansara Avenue to sustain and yield reasonable returns to the Group going forward. With the recent easing of the Chinese restrictions on investments beyond Mainland China, the top tier of Chinese development companies, backed by insurance and pension fund capital, have got the go-ahead from the Chinese government to pursue opportunities globally. As a result, capital outflows from China have grown since 2010 with nearly half the cash reflecting investments in centers like Manhattan, London and Sydney. Of late, we note that Chinese investors are becoming a bigger and bigger part of the Australian and Canadian residential and commercial property markets. This is very positive for us as our Group has significant residential development projects in both countries and such strong demands for residential properties will definitely boost the future sales in these countries. Lately, Canada is starting to witness a significant wave of Asian investors buying real estates across the country. However, these offshore investors in Canada have been fairly restrictive in their real estate purchases, concentrating on the residential sector. In Vancouver, demand for residential properties has escalated noticeably over the past 12 to 18 months. The stronger economic conditions in Canada combined with favorable interest rates, population growth, consumer confidence, depreciated currency and off-shore investors demands for property investments will continue to bolster housing demand in British Columbia over the next two years. With such favorable backdrop in the Vancouver residential market, we expect to record high sales turnover for Trump Vancouver residences as we draw near to its completion in year We are also confident that the 2nd Phase of The Gardens in Richmond, Canada will also benefit significantly from these sentiments. The Australian real estate also showed no signs of slowing down as it experienced strong auction property sales dominated by Sydney and Melbourne. Both Sydney and Melbourne are the only two major cities where a substantial proportion of auction sales are happening during the 2nd quarter of Real estate analysis data available in the market shows that property prices are up 6.4% in Sydney for 2015, compared to 3.9% gains in Melbourne and 0.1% rise in Brisbane. Sydney is where the main action is taking place. Solid demand for apartments, townhouses and semi-detached houses across Australia also contributed to new home sales figures rising again in February Sydney s eastern suburbs where our Little Bay Cove project is located saw significant increase in residential auction sales, a 69% increase on last year s auction numbers. On the whole, Sydney s residential housing prices are currently at its highest levels due to a shortage of new houses, generous tax breaks, cheap credit, and hot money from overseas and unprecedented levels of Chinese demand for units in Sydney. With the rapid pace of growth in the residential properties and with the remarkable performance of the Sydney s property market as compared to other states in Australia, the Little Bay Cove development is poised to benefit from this strong property trend and we are confident that our Little Bay Cove project will contribute significantly towards the performance of the Group as we start to launch the sales of our apartments, townhouses and semi-detached houses in the next few years. Whilst Thailand suffered a 6.4% decline in international visitor arrivals from 26.5 million in 2013 to 24.8 million in 2014, Phuket was unaffected, with international arrivals continuing to grow. A significant amount of new hotel supply and flat demand in 2014 caused the average hotel occupancy rate on the island to decline in However, on the whole, the Phuket hotel market in 2014 was comparatively much better when compared to Bangkok where occupancy fell by 13.2% and 15.1% in the four-star and five-star segments respectively. Adequate airport infrastructure and good international connectivity were among major factors that prevented Phuket s tourism and hotel industry from a market slump in 2014 as many tourists were able to fly direct to Phuket without the need for a stopover in Bangkok. According to the Airports of Thailand, in 2014 the number of domestic and international travellers who arrived at Phuket via the Phuket International Airport rose by 0.5% while the number of flights to Phuket increased by 4.6% to 75,974, representing a total of 11,400,000 passenger movements. The soon to be completed expansion of the Phuket International Airport in 2015 should contribute further to increasing international visitors to the island. In addition, the long-awaited project to build a light rail mass-transit system to ferry tourists and residents the length of the island is slated to be constructed in 2021.This 23.5-billion-baht Phuket light-rail project will be an enormous development for the island s tourism and property industries and it will be the key catalyst for real estate and economic growth in Phuket. 22 TA Global berhad Annual Report 2015

25 Chairman s Statement With the expected year-on-year increases in the number of tourist arrivals driven by the airport expansion, increased political stability in Thailand and future economic growth of Phuket resulting from the Phuket Light-Rail project, the market outlook for hotels in Phuket will continue to be strong and promising in the years ahead. In the long term, we believe that our hotel in Phuket will continue to drive higher contributions to the Group and benefit significantly from the completion of the Phuket International Airport and Phuket Light-Rail. Although some of our hotel properties in Singapore, Australia, China, Canada and Thailand will be undergoing some refurbishment and upgrading works in 2015, we are confident that these hotels will continue to generate a stable recurrent income stream for the Group in the coming year under review as these hotel properties are strategically located in countries which have a stable economy and political climate. As part of our growth strategy for our Hospitality Division, we will build new hotels in Malaysia in the next few years and continue to proactively explore new hotel acquisitions to further enhance our hotel operations revenue. On the development front, we embark to develop our land banks in Malaysia, Canada and Australia more aggressively and continuously seek opportunities to grow our land banks and property development operations both locally and internationally. Operationally, we will strive to strengthen all our operational processes and controls within the Group for better efficiency and productivity. We remain as committed as ever to developing a pool of talented, efficient and productive workforce to drive our performance and higher profit margins in all our business divisions to maximize returns for our shareholders. Barring any unforeseen circumstances, our Group will continue to be profitable in the financial year ending 31 January ACKNOWLEDGEMENT On behalf of the Board of Directors, I wish to extend our sincere appreciation to all our valued purchasers, shareholders, business associates, financiers, governmental authorities and partners for their continued support during the year. Our thanks and gratitude also goes to the Management and all employees of TAG and its subsidiaries for their hard work and invaluable contribution in delivering a solid and impressive return for our Group in Your strive for excellence and commitment to ensure that TA remains competitive in the market place has indeed taken the Group through an exciting and challenging transformational year. With your dedication and loyalty, I am confident that the TA Group will emerge stronger to take on new opportunities and challenges in the years ahead. To my fellow Board members, thank you for continuous sharing of ideas and tremendous support in growing the TA Global Group together with me. We look forward to a strong year ahead. DATUK TIAH THEE KIAN Executive Chairman TA Global berhad Annual Report

26 Corporate Social Responsibility TA continues to play an active role as a responsible corporate company to improve the living standards of the poor and needy through many Corporate Social Responsibility ( CSR ) activities. TA believes in giving back meaningfully to the local community through a wide range of CSR activities that promote healthcare, education and providing financial assistance to the poor and needy, and also through staff engagement and volunteerism. TA S RESPONSIBILITY TO THE COMMUNITY, SOCIETY & WORKPLACE TA has adopted a few homes and organizations under its CSR wings and donates on a monthly basis to help fund their operational expenses. a) Grace Community TA Group has provided 4 shop lots in Klang to Grace Community Services (GCS) in 2011 to store the bulk food donations and as a community centre for various social activities. GCS is a non-profit charitable organization established to care for the destitute, handicapped, orphans and widows. The food bank was set up with the primary objective of providing basic food items to charitable homes, rehabilitation centres and the poor in Klang, Kuala Lumpur, Shah Alam and the surrounding states. In addition to this, TA Group also donates a fixed monthly sum to help the various charitable activities such as the food bank, clinic for the poor, Persatuan Rumah Kids and shelter for the homeless and abused women. b) Shepherd Centre Foundation (2 Orphanage Homes for Boys & Girls), Semenyih & Bukit Beruntung TA Group had provided its very own vacant bungalow lot and built a home with facilities for The Shepherd Centre Foundation to provide a home for boys and girls who have been orphaned, abused or abandoned. The new home was opened in January, 2014 and it provides a head start for about 15 boys from ages 6-18 with living skills facilities such as bakery, vegetable farming and chicken rearing and an upcoming plan to start fish farming. Hands on Skill Training Shepherd Centre Foundation Boys Chicken Farming Harvesting Crops Team Work to repair broken machine 24 TA Global berhad Annual Report 2015 Vegetable Farming

27 Corporate Social Responsibility c) Desa Amal Jireh TA Group makes a monthly contribution to Desa Amal Jireh Home at Semenyih which houses 101 children from ages 1-23 who are orphans, from single parents or poor families. The home provides shelter, education, counselling and motivation to the children equipping them to adapt to society when they leave the home. They also home- school 26 children and the teacher with the older children will go to the orang asli community in Mantin weekly to teach basic English. d) TA Mobile Clinic TA Group works together with Gethsemane Medical Care to set up TA Mobile Clinic in 2007 to provide free medical treatment and care to the more needy community, regardless of race and religion in the outskirts and orang asli villages. The clinic is held during weekends and a team of 2 or 3 doctors with 10 volunteers will give medical assistance to the marginalized community. This ministry transcends all boundaries as free medical care is also given to many foreign workers and refugees in our country and has greatly impacted many lives. This collaboration helps create a sustainable healthcare programme for the underprivileged and unreached groups. Dr Rakesh & Team at Gambang Providing medical aid to the underprivileged at Bukit Asu Perak (left) & Rawang (right) TA Mobile Clinics at Sg Lembing (left) and Kg Terbol Kuala Krau (right) At Banana Plantation, Slim River On top of that, TA has also made cash donations / donations in kind to the following homes to assist the homes in their operating costs and basic needs. Pertubuhan Kebajikan Yesuvin Mahligai (YM) Selangor Kasih Foundation Alzheimer's Disease Foundation Malaysia (ADFM) PJ Caring Home Pusat Jagaan Siddhartan Yayasan Latihan Insan Istimewa Pertubuhan Membantu Pesakit Parah Miskin Malaysia Internal CSR Initiative a) Aava Malacca TA s very own hotel brand, the Aava Malacca is a 16 room boutique hotel located within walking distance to Jonker Street, the famous tourist attraction in Malacca. The purpose of this hotel is to enable TA s charities to be self-sustaining as the net profit generated from its operations will be donated to charities. The hotel is targeting to open its doors to the public in the next financial year. TA Global berhad Annual Report

28 Corporate Social Responsibility TA s responsibility to its employees a) Work-life balance TA believes that a healthy body through regular exercise promotes higher productivity and also creates a work life balance. TA has always emphasized and is committed to promoting the well-being of our staff in the workplace. TA staff enjoys a free gym membership to our TA s gymnasium located on the 11th floor of Menara TA One. The fully equipped gymnasium was set up in year 2005 for the benefit of the staff. b) TA s team building campaign In 2014, TA allocated a special team building fund for all employees to encourage team building and for bonding purposes achieved through various outings as the Management of TA believes in building a strong team spirit amongst its employees. Team photo before setting off Having lunch together Team challenge Jungle trekking Team photo after completed jungle trekking Team photo with TA Group flag TA s responsibility to the environment a) Water and Energy conservation program TA is committed to reducing consumption of resources and energy by minimizing wastages. We have embarked on water and energy conservation programs at all our hotels as means to preserve and conserve Mother Nature. The types of water and energy conservation programs adopted by some of TA s hotels are efficient LED lightings, energy saving system, natural gas reduction, motion sensor control lightings and potable water management. b) Going green and paperless concept As part of TA s effort to reduce paper wastage, we have adopted the E-Board Papers & E-Info Meeting Concepts. Board papers and reports are circulated via s or compact discs to Management and Board of Directors. The E-Board Papers are also projected on screen during all the Board and Committee meetings. 26 TA Global berhad Annual Report 2015

29 5-year Group Financial Summary (Audited) (Audited) (Restated)^^^ (Restated)^^^ (Audited) Year ended Year ended Year ended Year ended Year ended 31-Jan Jan Jan Jan Jan-11 (RM '000) (RM '000) (RM '000) (RM '000) (RM '000) OPERATING RESULTS Revenue 760, , , , ,354 Profit before tax 204, , , , ,040 Profit after taxation 147, ,451 91, ,070 91,367 Profit attributable to equity holders of the parent 147, ,451 91, ,071 91,366 KEY FINANCIAL POSITION DATA Total assets 4,877,282 4,479,585 4,230,156 3,758,688 3,395,457 Cash and cash equivalents * 328, , ,646 97, ,900 Total liabilities 2,271,972 1,904,866 1,696,318 1,317,182 1,064,135 Total borrowings** 1,634,699 1,327,787 1,150, , ,632 Paid up share capital 2,660,862 2,660,862 2,660,862 2,660,862 2,660,862 Shareholders' equity 2,547,322 2,516,731 2,475,850 2,383,518 2,273,333 SHARE INFORMATION Per share (sen) - Earnings (Basic) ^ Earnings (Fully diluted) ^ Net tangible assets ^^ Gross dividends Share price as at 31 January (RM) ICPS share price as at 31 January (RM) Market capitalisation (RM'000) 1,729,560 1,567,288 1,247,879 1,574,511 2,297,547 FINANCIAL RATIOS Return on total assets (%) 3.0% 2.5% 2.2% 2.7% 2.7% Return on shareholders' equity (%) 5.8% 4.5% 3.7% 4.3% 4.0% Gearing ratio (times) Dividend payout ratio 36% 34% 33% 36% 40% Price to earnings ratio (times) * Comprises short term funds but excluding monies held in trust and pledged for bank guarantees. ** Secured foreign currency denominated term loan and short term borrowings. ^^ Net tangible assets = total assets - total liabilities - intangible assets - deferred tax assets + deferred tax liabilities. ^ The earnings per share were calculated based on the Group s profit attributable to equity holders of the company divided by the weighted average number of ordinary shares and preference shares. ^^^ Certain figures in the Group Financial Summary for the financial year ended 31 January 2013 and 31 January 2012 have been restated due to impact arising from the adoption of FRS 11. TA Global berhad Annual Report

30 5-year Group Financial Summary Revenue and Profit After Tax Financial Years PAT Revenue RM Million Shareholders' Equity, Total Assets and Total Liabilities ,064 2,273 3,395 Financial Years ,317 1,696 1,905 2,384 2,476 2,517 3,759 4,230 4,480 Total assets Total liabilities Shareholders' equity ,272 2,547 4, ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 RM Million 250 Profit After Tax (attributable to equity holders of the parent) and Year-End Share Price RM Million PAT Share price Financial Years 28 TA Global berhad Annual Report

31 Segmental Analysis Segment Assets RM ('000) Revenue (RM'000) 709,945, 15% 1,816,035, 38% 248,612, 33% 150,225, 20% 111,460, 14% 933,669, 20% 364,402, 8% 736,769, 15% 4, 0% 193,907, 4% 54,609, 7% 159,452, 21% 36,609, 5% Segment Assets RM ('000) Revenue (RM'000) 709,950, 16% 1,547,826, 36% 277,471, 40% 147,181, 21% 896,966, 21% 355,151, 8% 649,296, 15% 4, 0% 188,807, 4% 69,739, 10% 55,047, 8% 39,365, 6% 103,614, 15% Segment Assets RM ('000) Revenue (RM'000) 707,846, 17% 1,421,913, 35% 233,039, 37% 148,775, 23% 866,412, 21% 4, 0% 358,328, 9% 212,329, 5% 530,666, 13% 44,097, 7% 52,236, 8% 46,643, 7% 113,231, 18% Malaysia Singapore Australia Malaysia Singapore Australia Canada Thailand China Canada Thailand China Others TA Global berhad Annual Report