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Leonard Norton
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Cover RATIONALE 2011 marks the beginning of a new decade emerging from transformational approaches and a rallying spirit that is uniquely UMLand.

2 Cover RATIONALE 2011 marks the beginning of a new decade emerging from transformational approaches and a rallying spirit that is uniquely UMLand. This year s theme of CHARTING NEW HORIZONS heralds the Group s blueprint for greater goals through a constant state of readiness and vigour based on our strengths and competencies.

3 Contents Corporate Profile Corporate Information Chairman s Message Five-Year Group Financial Highlights Financial Calendar Group Corporate Structure Board of Directors Profile of Directors Management Team Operations Review Corporate Responsibility Corporate Calendar 2011 Corporate Governance Statement Statement on Internal Control Audit Committee Report Additional Compliance Information Financial Statements List of Properties Analysis of Shareholdings as at 30 April 2012 Notice of 51 st Annual General Meeting Statement Accompanying Notice of 51 st Annual General Meeting Form of Proxy 2 UNITED MALAYAN LAND BHD (4131-M)

4 Vision To be a property developer of distinction, creating quality lifestyles and communities Mission To develop a brand that represents quality and innovation which creates value and is the preferred choice Shared Values Integrity Customer driven Profitable Excellence Rewarding Team that works Progressive 3

UMLand operates two development divisions, namely the Township and Niche Divisions. The Group has over 1,800 acres of undeveloped land in both Township and Niche Divisions.

5 Corporate PROFILE Listed on the Main Market of Bursa Malaysia Securities Berhad, United Malayan Land Bhd (UMLand) is an established property developer in Malaysia. Its major shareholders include CapitaLand Limited, Tradewinds Corporation Berhad and Chee Tat Holdings (S) Pte Ltd who are reputable players in the property industry. UMLand operates two development divisions, namely the Township and Niche Divisions. The Group has over 1,800 acres of undeveloped land in both Township and Niche Divisions. Guided by a dynamic Board of Directors under the leadership of YA Bhg Tun Musa Hitam, UMLand s Board of Directors comprises seven members, four of whom are independent. The Township Division has three mixed township developments located in high growth areas of Malaysia. The townships of Bandar Seri Alam and Taman Seri Austin are strategically located within Iskandar Malaysia, Johor whilst Bandar Seri Putra is situated in Selangor. The Niche Division has to date completed three residential serviced residences and condominiums Seri Bukit Ceylon at Jalan Bukit Ceylon, Suasana Sentral Loft at KL Sentral and Suasana Bangsar in the suburb of Bangsar. The Division is now developing Suasana Bukit Ceylon, an exclusive highrise serviced residences in the enclave of Bukit Ceylon within KL city centre and Somerset Puteri Harbour, a luxurious boutique serviced residences at the Puteri Harbour waterfront in Nusajaya, Iskandar Malaysia. Upcoming development projects include several mixed developments within Iskandar Malaysia and the KL city centre. As at 31 December 2011, UMLand s paid up share capital is RM302,031,014, comprising 302,031,014 ordinary shares of RM1.00 each. The Group s shareholders fund was RM915.9 million and net asset per ordinary share was RM UNITED MALAYAN LAND BHD (4131-M)

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8 BOARD OF DIRECTORS Tun Musa Hitam Chairman Independent Non-Executive Director Dato Ng Eng Tee Deputy Chairman/Executive Director Non-Independent Executive Director Datuk Syed Ahmad Khalid Syed Mohammed Independent Non-Executive Director Datuk Nur Jazlan Tan Sri Mohamed Independent Non-Executive Director Syed Azmin Mohd Syed Nor Non-Independent Non-Executive Director Ng Eng Soon Non-Independent Non-Executive Director Pakhruddin Sulaiman Independent Non-Executive Director REMUNERATION COMMITTEE Datuk Syed Ahmad Khalid Syed Mohammed (Chairman) Datuk Nur Jazlan Tan Sri Mohamed Syed Azmin Mohd Syed Nor NOMINATION COMMITTEE Datuk Syed Ahmad Khalid Syed Mohammed (Chairman) Datuk Nur Jazlan Tan Sri Mohamed Syed Azmin Mohd Syed Nor RISK COMMITTEE Syed Azmin Mohd Syed Nor (Chairman) Dato Ng Eng Tee Pakhruddin Sulaiman OPTION COMMITTEE Syed Azmin Mohd Syed Nor (Chairman) Dato Ng Eng Tee Zulkifly Garib BANKERS Alliance Bank Malaysia Berhad AmBank Group Asian Finance Bank Berhad CIMB Bank Berhad Kuwait Finance House (Malaysia) Berhad Malayan Banking Berhad OCBC Bank (Malaysia) Berhad RHB Bank Berhad SHARE REGISTRAR Securities Services (Holdings) Sdn. Bhd. Level 7, Menara Milenium Jalan Damanlela Pusat Bandar Damansara Damansara Heights Kuala Lumpur Tel No : Fax No : STOCK EXCHANGE LISTING Main Market, Bursa Malaysia Securities Berhad Stock Name : UMLand Stock Code : 4561 AUDIT COMMITTEE Datuk Syed Ahmad Khalid Syed Mohammed (Chairman) Datuk Nur Jazlan Tan Sri Mohamed Pakhruddin Sulaiman EXECUTIVE COMMITTEE Tun Musa Hitam (Chairman) Dato Ng Eng Tee Syed Azmin Mohd Syed Nor Datuk Syed Ahmad Khalid Syed Mohammed COMPANY SECRETARY Zuraidah Mohamed Yusoff (MAICSA ) REGISTERED OFFICE Suite 1.1, 1st Floor Kompleks Antarabangsa Jalan Sultan Ismail Kuala Lumpur Tel No : Fax No : (Corporate) (Secretarial) WEBSITE ADDRESS AUDITORS TENDER BOARD COMMITTEE PricewaterhouseCoopers Dato Ng Eng Tee (Chairman) Chartered Accountants Syed Azmin Mohd Nursin Level 10, 1 Sentral, Jalan Syed Nor Kuala Lumpur Sentral Datuk Syed Ahmad Khalid P O Box Syed Mohammed Kuala Lumpur Corporate INFORMATION 7

SOMERSET PUTERI HARBOUR, ISKANDAR MALAYSIA SOMERSET PUTERI HARBOUR is an iconic project in the heart of Puteri Harbour and features 168 units of freehold luxurious boutique

9 SOMERSET PUTERI HARBOUR, ISKANDAR MALAYSIA SOMERSET PUTERI HARBOUR is an iconic project in the heart of Puteri Harbour and features 168 units of freehold luxurious boutique service residences. The jewel of Nusajaya, this waterfront precinct is an integrated waterfront and marina development that offers the ultimate in luxury waterfront living.

Set at the centre of the scenic waterfront and spectacular marina, Somerset Puteri Harbour will feature a range of quayside lifestyle stores, fine dining restaurants and alfresco cafes upon its

10 Set at the centre of the scenic waterfront and spectacular marina, Somerset Puteri Harbour will feature a range of quayside lifestyle stores, fine dining restaurants and alfresco cafes upon its completion and is flanked by an international class hotel and an indoor theme park. This twin-block five-storey joint venture development between UMLand and UEM Land Berhad presents a new lifestyle destination for the affluent and well-heeled.

Chairman s MESSAGE Dear Shareholders, On behalf of the Board of Directors (the Board) of United Malayan Land Bhd (UMLand or the Group), I am pleased to present the Group s annual report and financial

11 Chairman s MESSAGE Dear Shareholders, On behalf of the Board of Directors (the Board) of United Malayan Land Bhd (UMLand or the Group), I am pleased to present the Group s annual report and financial statements for the year ended 31 December 2011 (FY2011). OPERATING ENVIRONMENT The global economy rebounded from the financial crisis of 2008 and 2009 with most major economies showing positive growth in The recovery however, was dampened in 2011 which witnessed considerable turmoil in the political and economic environment such as the uprisings in the Middle East and North Africa, the tsunami in Japan and the sovereign debt crisis in the Euro zone. These events have resulted in volatility of commodity prices, disruptions to supply chains and general uncertainty and impacted businesses across many nations, slowing the recovery in mature markets and impeding growth in emerging markets. Although the US economy appeared to be teetering on the edge of another recession, it defied expectations by recording a Gross Domestic Product (GDP) growth of 2.8% in the final quarter of This positive turnaround was boosted by companies rebuilding their inventories and increased consumer spending, which accounted for 70% of the national economy. For the year 2011, the US economy grew just 1.7%, after expanding 3% in Closer to home, China, being the world s second largest economy, had also unexpectedly registered a higher than expected growth of 8.9% in the final quarter of This was despite shrinking exports, tighter bank lending and a cooling real estate market. For the year, China s economy expanded by 9.2%, compared to 10.3% in was a year of continued progress for the Malaysian economy, following a strong recovery in 2010, driven mainly by the domestic private sector. Malaysia s economic performance for the final quarter of 2011 garnered a GDP growth of 5.2% bringing the year s full-year growth to a commendable 5.1% as domestic demand remained favourable supported by both private and public sector spending. Indeed, many sectors of the economy performed well over the past 12 months. Of greater significance was the construction sector, which recorded RM85 billion worth of projects, a 3.4% growth compared to This was largely attributed to the support received from the roll-out of projects under the 10th Malaysia Plan (10MP), amounting to RM230 billion and the Economic Transformation Programme (ETP) in the second half of the year under review. Notwithstanding the slower growth experienced in the global economy in general and the resilience demonstrated by the Malaysian economy in particular, I am pleased to report that UMLand Group concluded FY2011 by reporting a healthy profit. Once again, the Group s strong performance for the year under review underscores not only the support received from all our stakeholders but also its prudent management of financial resources and continuous evolution in tandem with the developments of the real estate industry in Malaysia. 10 UNITED MALAYAN LAND BHD (4131-M)

12 I am pleased to report that UMLand Group concluded FY2011 by reporting a healthy profit. 11

Chairman s MESSAGE FINANCIAL PERFORMANCE In the year under review, the Group s pre-tax profit was RM80.8 million, on total revenues of RM323.5 million, a 8.7% and 2.1% increase respectively from RM74.

13 Chairman s MESSAGE FINANCIAL PERFORMANCE In the year under review, the Group s pre-tax profit was RM80.8 million, on total revenues of RM323.5 million, a 8.7% and 2.1% increase respectively from RM74.3 million and RM316.9 million recorded in the previous financial year ended 31 December 2010 (FY2010). Profit attributable to owners of the Group stood at RM56.9 million for FY2011, a rise of 10.3% from RM51.6 million in the previous year. The Group s balance sheet and liquidity remained strong, with net assets at the end of FY2011 of RM969.1 million. DIVIDEND In line with the Group s endeavour to continue rewarding its shareholders with consistent dividend payout, UMLand has adopted a dividend policy of 25% payout ratio based on the Group s annual net earnings, after taking into consideration the availability of distributable reserves as well as the Group s cash flow requirements. This policy heralds the commitment by the Group to strive to improve earnings and consequently increase shareholders returns on their investment. For FY2011, the Group paid a tax-exempt interim dividend of 2.50 sen per ordinary share and proposed to pay a final net dividend of 5.00 sen per ordinary share. The proposed final net dividend of 5.00 sen per ordinary share is subject to shareholder s approval at the forthcoming AGM. If approved by the shareholders, the total net dividend for FY2011 is 7.50 sen per ordinary share, which represents a payout of 40% of the Group s net earnings for the year, higher than the payout ratio adopted by the Group. HIGHLIGHTS The year under review witnessed several key milestones and achievements for the Group. UMLand has continued to maintain focus and advanced its township operations, particularly in Iskandar Malaysia. Indeed, the Group s township division, comprising Bandar Seri Alam and Seri Austin in Iskandar Malaysia and Bandar Seri Putra in Selangor, has remained a major contributor to the Group s revenue. The series of launches at the Group s three townships pays testament to our strong commitment of delivering quality and affordable housing to the general Malaysian public. Given the tremendous growth potential in Iskandar Malaysia, UMLand has increased its involvement in Iskandar Malaysia in 2011 and now marks its presence across four out of the five Iskandar flagship zones, with a total gross development value (GDV) of over RM5.9 billion to be realised over the future years. We are especially encouraged by the healthy sales for the Group s projects in Iskandar Malaysia, as the take up rate over the last two years has increased substantially. The Group s current landbank in Iskandar Malaysia of more than 1,600 acres stands as a testimony of the Group s commitment and strengthening position in the emerging property market within this Southern economic zone of Malaysia. During the year, the Group s flagship township in Iskandar Malaysia, Bandar Seri Alam, further cemented its reputation as the education hub for the Eastern Gate of Iskandar Malaysia with the signing of a Memorandum of Understanding with HELP International Corporation Berhad to establish its first HELP University campus in the Southern region; and the strategic partnership with Raffles Campus Pte Ltd to build the first Raffles Campus international school in Malaysia. The addition of HELP University campus and Raffles School will further contribute towards the strategic transformation of Seri Alam into a City of Knowledge and significantly enhance the Group s long-term investment appeal against its competitors in the region given the various developments coming on stream in Iskandar Malaysia. Of equal significance is UMLand s strategy of maintaining a portfolio of quality land bank for developments within the short, medium and longer terms. This strategy has served UMLand well through the various real estate cycles and accorded the Group greater flexibility in business decision making on its development focus and product launches. As a result of UMLand s land bank strategy, the Group was well positioned to weather the constantly evolving environment and capitalise on opportunities in 2011 and I am pleased to report that the Group is on track to deliver a series of quality residential projects that meet the needs of an evolving market. In line with our mission of developing a brand that is synonymous with quality and innovation, UMLand has also increased its momentum on building its portfolio of niche developments with the successful launch of Suasana Bukit Ceylon, a 310 unit serviced residences apartments in the enclave of Bukit Ceylon within the Kuala Lumpur City Centre with an estimated GDV of over RM320 million in 2011, which was well received by the market with strong sales recorded. 12 UNITED MALAYAN LAND BHD (4131-M)

OUTLOOK IN 2012 Many economies, including Malaysian, have shown signs of improvement over the past few months. However, uncertainty remains over the pace and shape of the European and US economies.

The Board is optimistic that 2012 will be another good year for UMLand, on the back of favourable demand for residential properties and strong growth prospect in Iskandar Malaysia.

14 OUTLOOK IN 2012 Many economies, including Malaysian, have shown signs of improvement over the past few months. However, uncertainty remains over the pace and shape of the European and US economies. The Board believes that the Malaysian economy will continue to grow over the next 3 years backed by the continued implementation of projects under the 10MP and the Entry Point Projects under the ETP. The Board is optimistic that 2012 will be another good year for UMLand, on the back of favourable demand for residential properties and strong growth prospect in Iskandar Malaysia. The Board is heartened to note that the Group s unwavering commitment to creating shareholders value has been more evident in Iskandar Malaysia with its significant interests in various development projects. In February 2012, the Group launched Somerset Puteri Harbour, a 168-unit luxurious boutique serviced apartment development at the waterfront and marina of Puteri Harbour, Iskandar Malaysia which is a 50:50 joint venture project with UEM Land Berhad with strong sales take up. With its strategic location neighbouring Singapore and proximity to some of the world s most rapidly growing and important economies as well as its range of attractive fiscal and non-fiscal incentives, Iskandar Malaysia is poised to attract a growing influx of foreign and high-level corporate investments. The Board is also confident that the immense potential of Iskandar Malaysia will positively impact the Group s future earnings growth from its two townships, Bandar Seri Alam and Seri Austin and its second development in Puteri Harbour (parcel CS3), a commercial development in Johor Bahru City, the newly-acquired 333 acres of land located just East of Bandar Seri Alam and the acquisition of the 629- acre Pulai Jaya Land, located at the intersection of the North- South Expressway and the second link to Singapore, opposite the Johor Premium Outlet. I am also pleased to announce that in March 2012, UMLand entered into a collaboration agreement with Iskandar Investment Bhd (IIB) to look at the possibility of undertaking development projects in Medini, Iskandar Malaysia, which has incentives for foreign investors only available to Medini. Located in the Nusajaya Flagship zone of Iskandar Malaysia, Medini is one of the eight catalyst developments within Nusajaya, in addition to Johor State New Administration Centre, Puteri Harbour, Southern Industrial and Logistic Cluster, Afiat Healthpark, EduCity, International Destination Resort and Nusajaya Residences. Given the unique incentives available to foreign investors in Medini and the central role Medini plays in the vision of success in Iskandar, the collaboration between UMLand and IIB bodes well for the Group s vision to grow in the anticipated success of Iskandar Malaysia. In addition to the Group s projects in Iskandar Malaysia, another project in the pipeline is the Group s joint venture development with Bolton, a 4.3-acre land in the Kuala Lumpur City Centre vicinity. This proposed mixed development of office, commercial and residential units is expected to take off in 2013 and will span over the next few years. The Group remains committed to delivering shareholders value through the continued generation of strong profits, and development of new sustainable revenue streams, while maintaining a conservative balance sheet in view of the uncertain macro-economic environment. The Board is confident that the Group will further progress as it capitalises on new investment opportunities and converts its developments into revenues streams in coming years. ACKNOWLEDGEMENTS I would like to extend my gratitude and appreciation to Mr. Pee Tong Lim, who retired as the Group Chief Executive Officer in February 2012, for his contributions over the years. His level-headed counsel will be greatly missed by the Board and management of UMLand. I also wish to thank my fellow Board members for their significant insights and contributions. Their invaluable contributions have played a key role in shaping UMLand s commendable performance in 2011 and strengthening the business for the future. My appreciation also goes to the management and staff for their dedication and commitment. Last but not least, I would like to thank our customers, business partners, associates, suppliers, bankers, authorities and everyone for their unwavering support that has contributed to the continuing success of the Group. TUN MUSA HITAM Chairman 13

15 Five-Year GROUP FINANCIAL HIGHLIGHTS UMLand Group (figures in RM million) KEY FINANCIAL INFORMATION Revenue Profit before taxation Taxation (20.05) (16.60) (5.45) (1.84) (11.10) Profit/(Loss) for the financial year (1.26) Profit/(Loss) attributable to: Owners of the Company (3.46) Non-controlling interests Profit/(Loss) for the financial year (1.26) Issued and paid-up share capital* Total assets employed 1, , , , , Total liabilities Total net assets Equity attributable to owners of the Company Non-controlling interests Total equity KEY FINANCIAL RATIOS Gross dividend per share (sen) Taxed Tax exempt Single tier Net dividend per share (sen) Basic earnings/(loss) per share (sen)** Net assets per share (RM) Gearing (times) (1.15) * Net of treasury shares of 401,800. ** Basic earnings per share for the comparative years has been restated to take effect of bonus issue completed in August UNITED MALAYAN LAND BHD (4131-M)

Revenue +2% Net profit attributable to owners of the company +10% 323.47million Good sales driven by township division 56.93 million Healthy profit margin from township and niche divisions 2011 323.

16 Revenue +2% Net profit attributable to owners of the company +10% million Good sales driven by township division million Healthy profit margin from township and niche divisions (3.46) Basic earnings per share (EPS) +10% Total assets +11% 18.87sen Driven by consistent performance 1,304.97million Adding value to our strong asset base , , , (1.15) , , Net assets per share -16% Net dividend per share 3.04 ringgit Net assets surpported by larger capital base 7.50 sen Continuous reward to our loyal shareholders (Figures in RM) 15

17 Financial CALENDAR For The Financial Year Ended 31 December 2011 Announcement of Quarter 4 financial results for the financial period ended 31 December 2010 to Bursa Malaysia Securities Berhad. 28 FEB FEB 2011 Payment of tax exempt interim dividend of 2.5 sen per ordinary share for financial year ending 31 December The final net dividend amounted to RM6,032, th Annual General Meeting/Extraordinary General Meeting. 22 JUNE MAY 2011 Announcement of Quarter 1 financial results for the financial period ended 31 March 2011 to Bursa Malaysia Securities Berhad. 22 AUG 2011 Payment of final dividend of 0.60 sen per ordinary share less tax and single tier 4.55 sen per ordinary share in respect of the financial year ended 31 December The final net dividend amounted to RM12,065, Announcement of Quarter 2 financial results for the financial period ended 30 June 2011 to Bursa Malaysia Securities Berhad. 24 AUG AUG 2011 Listing and quotation of Bonus Issue of 60,325,781 new ordinary shares of RM1.00 each pursuant to the Bonus Issue of 1 new ordinary share for every 4 existing ordinary shares held. Announcement of Quarter 3 financial results for the financial period ended 30 September 2011 to Bursa Malaysia Securities Berhad. 23 NOV UNITED MALAYAN LAND BHD (4131-M)

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19 SERI ALAM PROPERTIES Business of Real Estate BANGI HEIGHTS DEVELOPMENT Property Investment 70% 51% RAFFLES CAMPUS (SERI ALAM) Management of Campus Facilities for Education and related activities PMS SERVICES Operations of commercial properties and related activities SERI ALAM LEISURE Investment Holding SERI ALAM HOTEL RESORT Hotels, resorts and related leisure activities DYNASTY VIEW Property Development and Related Activities SERI ALAM GOLF & EQUESTRIAN CLUB Operation of a Recreational Club including leasing of the grounds and Related Activities UM LAND ASSETS Property Investment Investment holding and provision of management services IPJORA HOLDINGS Developing, Building, Owning and Operating Serviced Apartments ESSENTIAL UTILITIES TRADING General Trading UM LAND BUILDERS (Formerly known as UM Land Bena Sdn Bhd) Related Activities UM LEISURE General Trading COUNTRY EQUITY Investment Holding 18 UNITED MALAYAN LAND BHD (4131-M)

20 Group CORPORATE STRUCTURE TENTU TEGUH Related Activities 50.5% UM RESIDENCES Development of Serviced Apartments SSBC Letting and Marketing Somerset Seri Bukit Ceylon Serviced Residences 70% SUASANA SENTRAL TWO Related Activities LEXTREND Related Activities UM DEVELOPMENT Related Activities EXQUISITE MODE Related Activities 50% ALPINE RETURN Property Development and Related Activities 51% EXTREME CONSOLIDATED Related Activities EXQUISITE SKYLINE Related Activities 50% NUSAJAYA CONSOLIDATED Related Activities CLEAR DYNAMIC Related Activities Township Niche Others 19

Cover RATIONALE CHARTING NEW HORIZONS

Cover RATIONALE CHARTING NEW HORIZONS Cover RATIONALE 2011 marks the beginning of a new decade emerging from transformational approaches and a rallying spirit that is uniquely UMLand. This year s theme of CHARTING NEW HORIZONS heralds the