BURSA MALAYSIA SECURITIES BERHAD LISTING REQUIREMENTS COMPLIANCE INFORMATION

Transcription

1 BURSA MALAYSIA SECURITIES BERHAD LISTING REQUIREMENTS COMPLIANCE INFORMATION The information set out below is disclosed in compliance with the Listing Requirements of Bursa Malaysia Securities Berhad ( Bursa Securities ): (i) Utilisation of Proceeds Raised from Corporate Proposals There was no corporate proposal to raise proceeds during the financial year ended 31 December Disclosed in accordance with Appendix 9C, Part A, item 13 of the Listing Requirements of Bursa Securities. (ii) Share Buy-Back There were no shares buy-back during the financial year ended 31 December During the financial year ended 31 December 2014, a total of 1,014,600 LPI Shares that were held as treasury shares in accordance with Section 67A Subsection (3A)(b) of the Companies Act, 1965, had been fully re-sold in the open market. The details of the resale of treasury shares were as follows :- Monthly Breakdown No. of Treasury Share Re-sold Re-sale Price per Treasury Share (RM) Lowest Highest Average Total Consideration Received (RM) October ,014, ,765, None of the treasury shares were cancelled during the financial year ended 31 December Disclosed in accordance with Appendix 12D and Paragraph of the Listing Requirements of Bursa Securities. (iii) Options or Convertible Securities LPI has not issued any options or convertible securities during the financial year ended 31 December Disclosed in accordance with Appendix 9C, Part A, item 15 of the Listing Requirements of Bursa Securities. (iv) Depository Receipt Programme LPI did not sponsor any depository receipt programme during the financial year ended 31 December Disclosed in accordance with Appendix 9C, Part A, item 16 of the Listing Requirements of Bursa Securities. (v) Sanctions and/ or Penalties There were no sanctions and/ or penalties imposed on LPI and its subsidiary company ( LPI Group ), directors or management by the relevant regulatory bodies during the financial year ended 31 December Disclosed in accordance with Appendix 9C, Part A, item 17 of the Listing Requirements of Bursa Securities. 256 LPI CAPITAL BHD ANNUAL REPORT 2014

2 BURSA MALAYSIA SECURITIES BERHAD LISTING REQUIREMENTS COMPLIANCE INFORMATION (cont d) (vi) Non-audit Fees The amount of non-audit fees paid to external auditors by the LPI Group for the financial year ended 31 December 2014 amounted to RM76,835. Disclosed in accordance with Appendix 9C, Part A, item 18 of the Listing Requirements of Bursa Securities. (vii) Variation in Results There was no profit forecast issued by the LPI Group during the financial year ended 31 December Disclosed in accordance with Appendix 9C, Part A, item 19 of the Listing Requirements of Bursa Securities. (viii) Profit Guarantee There were no profit guarantees given by the LPI Group during the financial year ended 31 December Disclosed in accordance with Appendix 9C, Part A, item 20 of the Listing Requirements of Bursa Securities. (ix) Material Contracts There were no material contracts entered into by the LPI Group involving directors and major shareholders interests either still subsisting at the end of the financial year ended 31 December 2014 or entered into since the end of the previous financial year. Disclosed in accordance with Appendix 9C, Part A, item 21 of the Listing Requirements of Bursa Securities. (x) Recurrent Related Party Transactions LPI did not seek any mandate from its shareholders as required under Paragraph 10.09(2)(b), Part E of Chapter 10 of the Listing Requirements of Bursa Securities as the recurrent related party transactions of a revenue or trading nature entered into by LPI Group qualified as exempted transactions as defined under Paragraph 10.08(11)(e), Part E of Chapter 10 of the Listing Requirements of Bursa Securities. Disclosed in accordance with Paragraph 10.09(2)(b) of the Listing Requirements of Bursa Securities. GROWTH DRIVEN VALUE CREATION 257

3 MALAYSIAN ECONOMY: REVIEW AND OUTLOOK I. Global Perspective: II. Malaysian Economy: Review The global economy continued with a moderate recovery in The pace of growth, however, diverged across countries. In the United States of America ( US ), after a temporary setback in the first quarter of 2014, economic activity had continued to gain momentum, with the housing and non-residential sector further strengthened and the labour market continued to improve. In the euro area, growth had remained subdued. Insufficient demand, sluggish labour market and high debt continued to strain the economy. In Japan, the economy fell into contraction in the second and third quarters of 2014 as the increase in consumption tax dragged down domestic demand. Inflation was low in major advanced economies and remained below central banks targets, reflecting lower global energy prices and considerable output gaps. In particular, the decline in inflation rate in the euro area to 0.2% in December 2014 raised concerns over the risk of deflationary cycle in the region. Due to the diverged pace of recovery, the direction of monetary policy decisions by central banks differed across major advanced countries. In the US, the Federal Reserve concluded its third round of asset purchase programme in October 2014, but maintained the federal funds rate low at near zero. Meanwhile, the Bank of Japan took its quantitative easing to new heights by expanding its asset purchases and the European Central Bank also implemented further monetary easing through a range of actions such as reducing policy rates and implementing targeted credit easing to boost lending to the economy. In the Asian region, while most economies continued to expand, several economies registered more moderate growth in In China, credit growth slowed and real estate market underwent correction, as the government undertook structural reforms to address imbalances. However, the government had announced several targeted measures to prevent an economic hard landing. For some countries, the moderation in economic growth was due to country-specific factors, such as political tension in Thailand and domestic restructuring in Singapore. Nevertheless, Asian economies were broadly steady in 2014 as domestic demand remained supportive of the economy. During the year, the direction of monetary policy decisions by Asian central banks also differed, reflecting various country-specific conditions. Despite the increased risks to growth, the Malaysian economy remained on a steady growth path in 2014, driven by continued expansion in domestic demand and recovery in the external sector. Private sector-led domestic demand remained the key driver of growth. Given the strong first half growth, the Government revised upward its 2014 real gross domestic product ( GDP ) growth forecast to 5.5% - 6.0% from 5.0% - 5.5%. After a strong growth of 6.3% y-o-y in the first half of 2014, GDP in the third quarter of the year continued to maintain a commendable growth rate, albeit at a more moderate pace of 5.6% y-o-y (Table 1). Domestic demand remained favourable, helping to cushion the moderation in export growth in the third quarter of Private sector activity continued to lead growth, as household spending remained resilient and investment continued to grow sustainably. On the supply side, all economic sectors recorded positive growth in the third quarter of 2014 (Table 2), with the services, construction and manufacturing sectors remained as the growth drivers. The growth in the services sector was largely supported by the consumption- and productionrelated services sub-sectors, while the manufacturing sector was underpinned by sustained expansion in domestic- and export-oriented industries. The construction sector also recorded strong growth, largely driven by the residential and non-residential sub-sectors. Table 1 Malaysia: GDP by Expenditure Components, (at constant 2005 prices) % Annual Change Q 2Q 3Q Aggregate Domestic Demand Private Sector Consumption Investment Public Sector Consumption Investment Net Exports Exports of Goods and Services Imports of Goods and Services GDP Source: Department of Statistics, Malaysia, Gross Domestic Product, Third Quarter LPI CAPITAL BHD ANNUAL REPORT 2014

4 MALAYSIAN ECONOMY: REVIEW AND OUTLOOK (cont d) Table 2 Malaysia: GDP by Economic Activity, (at constant 2005 prices) Graph 2 Malaysia: Unemployment Rate, 2014 % Annual Change Q 2Q 3Q Agriculture Mining Manufacturing Construction Services GDP % of labour force Source: Department of Statistics, Malaysia, Gross Domestic Product, Third Quarter Headline inflation averaged higher at 3.2% y-o-y in 2014, compared to 2.1% y-o-y in 2013, mainly due to the impact of subsidy rationalisation in fuel and sugar, and the hikes in electricity tariffs and prices of cigarettes (Graph 1). The moderation in inflation in September 2014 was due to higher base effect from 2013, while in December 2014, the slower increase of inflation was a result of lower retail fuel prices following the implementation of managed float system. Labour market conditions remained favourable, with the unemployment rate declining to 2.7% in November 2014 from 3.3% in January 2014 (Graph 2). Graph 1 Malaysia: Headline Inflation, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Source: Department of Statistics, Malaysia, Principal Statistics of Labour Force, November Banking System The Malaysian banking system remained strong and supportive of the economy, despite the ongoing challenges in the global market. During the year, banks continued to be wellcapitalised, with the Common Equity Tier 1 Capital Ratio, Tier 1 Capital Ratio and Total Capital Ratio of the banking system remained high at 12.6%, 13.3% and 15.3% respectively as at end-november 2014, which were well above the regulatory minimum levels (Graph 3). The strong banking system was further supported by high asset quality and ample liquidity. As at end-november 2014, gross impaired loans ratio was stable at 1.7% (Graph 4). Loan-to-deposit ratio remained at a comfortable level of 86.6% (Graph 5). % change, y-o-y Graph 3 Banking System: Capital Strength, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % Source: Department of Statistics, Malaysia, Consumer Price Index, various issues Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Common Equity Tier 1 Capital Ratio Tier 1 Capital Ratio Total Capital Ratio Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November GROWTH DRIVEN VALUE CREATION 259

5 MALAYSIAN ECONOMY: REVIEW AND OUTLOOK (cont d) Graph 4 Banking System: Gross Impaired Loans Ratio, Graph 6 Banking System: Loan Growth, % % change, y-o-y Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Total Households Businesses Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November Graph 5 Banking System: Loan-Deposit Ratio*, Graph 7 Banking System: Deposit Growth, % % change, y-o-y Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Note : *Excludes transactions by financial institutions Source : Bank Negara Malaysia, Monthly Statistical Bulletin, November Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November During the year, total loans growth of the banking system moderated but remained at a healthy pace. As at end- November 2014, outstanding banking system loans expanded by 9.3% y-o-y, with lending to businesses expanded by 8.2% y-o-y and household sector by 10.2% y-o-y (Graph 6). The banking sector continued to source funds for its lending activities from the stable retail deposits. Total deposit growth stood at 7.8% y-o-y in November 2014 (Graph 7). Insurance and Takaful Sector The insurance and takaful sector maintained its resilience with a Capital Adequacy Ratio of 246.9% and an excess capital buffer of RM24.4 billion in the third quarter of During the quarter, excess income over outgo of the life insurance and family takaful businesses moderated to RM3.8 billion due to lower net investment gains and new business premium across all products. The operating profit of general insurance and takaful business eased to RM788.3 million due to lower underwriting profits (Table 3). 260 LPI CAPITAL BHD ANNUAL REPORT 2014

6 MALAYSIAN ECONOMY: REVIEW AND OUTLOOK (cont d) The life insurance business segment recorded sustained premiums amid continued demand for investment-linked, as well as protection and savings products. The general insurance business segment was largely supported by higher premiums from motor and fire businesses. Table 3 Malaysia: Profitability of Insurance and Takaful Sectors, Monetary Policy Graph 8 Banking System: Lending Rates of Commercial Banks, 2014 % RM million Q 3Q 1Q 2Q 3Q Life Insurance & Family Takaful Excess Income Over Outgo 4, , , , ,835.9 General Insurance & General Takaful Operating Profit Source: Bank Negara Malaysia, Quarterly Bulletin, Third Quarter On 10 July 2014, Bank Negara Malaysia ( BNM ) raised its Overnight Policy Rate ( OPR ), which was unchanged at 3.0% since May 2011, by 25 basis points to 3.25%. The rate adjustment was based on the higher inflationary pressure amid the steady economic growth prospect. The adjustment of monetary accommodation was also to mitigate the risk of broader economic and financial imbalances. In line with the higher OPR, lending rates (Graph 8) and deposit rates (Graph 9) were revised upward. Meanwhile, the Statutory Reserve Requirement of the banking system was maintained at 4.0%. Overall, monetary policy stance has remained supportive of economic growth. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Graph 9 Banking System: Deposit Rates of Commercial Banks, 2014 % Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November Fiscal Policy Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 3-month Fixed Deposit Savings Deposit In 2014, the Government continued its fiscal reform programme, aimed at achieving a balanced budget by 2020, while ensuring policies remained supportive of economic growth. Backed by higher revenue collection and a more prudent spending, the Federal Government is targeting to further reduce its fiscal deficit to 3.5% of GDP in 2014 from 3.9% of GDP in 2013 (Graph 10). Also, the Federal Government debt which stood at 52.8% of GDP as at end- June 2014, is expected to stay within a manageable level of 55.0% of GDP during the year. Graph 10 Malaysia: Federal Government Fiscal Balance, % of GDP e Note: e Estimate Source: Ministry of Finance, Malaysia, Economic Report, 2014/2015. Base Lending Rate Average Lending Rate Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November GROWTH DRIVEN VALUE CREATION 261

7 MALAYSIAN ECONOMY: REVIEW AND OUTLOOK (cont d) Monetary Aggregates Monetary aggregates continued to grow in 2014, in tandem with economic activity. In November 2014, growth in narrow money or M1 moderated to 6.3% y-o-y from 11.6% y-o-y in January Broad money, M3 expanded by 7.1% y-o-y in November 2014 against 6.4% y-o-y in January 2014 (Graph 11). The expansion in M3 in November 2014 was due to continued growth in net claims on the Government and credit extended to the private sector by the banking system. Table 4 Malaysia: Current Account Balance, Current Account Balance (RM billion) % of Gross National Income Q 4Q 1Q 2Q 3Q Source: Bank Negara Malaysia, Quarterly Bulletin, Third Quarter Graph 11 Malaysia: Monetary Aggregates, Graph 12 Malaysia: International Reserves, % change, y-o-y USD billion Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov M1 M Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Bank Negara Malaysia, Monthly Statistical Bulletin, November Source: Bank Negara Malaysia, Press Statements on International Reserves. External Position Malaysia s external position remained resilient, building on its continued surplus in current account, large pool of domestic savings and ample international reserves. Despite that the trade account moderated in the third quarter of 2014 (Table 4), the current account of the balance of payments for the full year 2014 should remain in a surplus. Although Malaysia s international reserves had fallen since September 2014, it remained healthy, with the overall reserves stood at US$116.0 billion as at end-december 2014 (Graph 12). The reserves position was sufficient to finance 8.4 months of retained imports and was 1.1 times the short-term external debt. As at end-september 2014, Malaysia s total external debt remained at a manageable level of 68.7% of GDP. Ringgit Exchange Rate In 2014, the Malaysian ringgit fell against most currencies. The expectation that the US federal funds rate could hike sooner than expected led to an outflow of funds from the regional financial markets, dragging down the ringgit along with other regional currencies. Global oil prices, which plunged by half since June 2014, further added pressure to the ringgit in the last quarter of 2014, given Malaysia s reliance on oil for export earnings and fiscal revenue. During the year, the ringgit appreciated against the euro (6.5%) and the Japanese yen (6.9%), but depreciated against the US dollar (-6.1%) and pound sterling (-0.6%). Against the regional currencies, the ringgit weakened against the Singapore dollar (-1.9%), Thai baht (-6.1%), Philippines peso (-5.3%), Indonesian rupiah (-4.3%), Korean won (-2.9%) and Chinese renminbi (-3.8%). 262 LPI CAPITAL BHD ANNUAL REPORT 2014

8 MALAYSIAN ECONOMY: REVIEW AND OUTLOOK (cont d) III. Prospects, 2015 Global Economy: A Gradual and Moderate Recovery The global economic recovery is expected to continue on a moderate path, with the pace of growth continues to vary across regions and countries. For major advanced economies, growth is expected to be the strongest in the US. Stronger employment growth, strengthening household balance sheets, improving housing market and a more favourable financial condition should fuel further growth in consumption and investment in the US economy. Meanwhile, recovery in the euro area is projected to remain slow and uneven across the region. While the weak labour market and high level of debts will continue to weigh on economic activity, accommodative monetary policies and the wide range of measures taken by the European Central Bank are expected to be positive to the economy. Also, the very low inflation remains a concern in the region. In Japan, a modest pace of recovery is expected to take place in 2015, with stimulus measures by the government and the central bank s expanded monetary easing continue to support the economy. However, Japan s high public debt and the need for credible fiscal consolidation may continue to temper Japan s growth prospect. The emerging Asia is expected to remain on a steady growth path. Coupled with an improved outlook on domestic demand, a strengthening US economy is positive for the region as it is likely to benefit Asian exporters. The region s growth engine, China, is expected to continue growing, albeit at a more moderate pace, as economic rebalancing continues to take place. Global liquidity condition is expected to remain supportive of the global economy. The US Federal Reserve is expected to undertake its normalisation of interest rate gradually, and Japan and the euro area are likely to maintain their accommodative monetary policies. Downside risks to global economic growth remain elevated, emanating from geopolitical risks, uncertainty in the euro area and a lowerthan-expected growth in China. Malaysia: Steady Growth The Malaysian economic environment has become more challenging amid the effects of the plunge in global crude oil prices late last year. As Malaysia is an oil exporter, the country faces the risks of lower export earnings and slower investment activity which will likely constrain the country s economic growth. Reflecting the challenges, the Malaysian Government announced a revision of the 2015 Budget in January 2015, with measures to increase fiscal revenue and cut spending while ensuring sustainable economic growth. Taking into account the latest development, GDP growth is expected to remain on a steady growth path of 4.5% - 5.5% in The Malaysian economy will continue to be driven by domestic demand. The Government s decision to maintain the allocation for development expenditure in the revised national budget will continue to provide support to the economic growth. Major infrastructure projects such as the Mass Rapid Transit 2, the Light Rail Transit 3 and High-Speed Rail Kuala Lumpur-Singapore will continue to contribute to the growth of investment activity. Also, the Government s new measures such as setting up a Services Sector Guarantee Scheme for small and medium enterprises in the services sector, and reducing cost of doing business through the postponement of the scheduled electricity tariff hike and gas price hike for the industrial sector in 2015 will further stimulate investment activity. On private consumption, the implementation of Goods and Services Tax ( GST ) is expected to result in slower consumer spending. However, the stable labour market, income growth and Government s measures including the reduction in personal income tax rates will help to cushion the impact of GST on consumer spending. GROWTH DRIVEN VALUE CREATION 263

9 MALAYSIAN ECONOMY: REVIEW AND OUTLOOK (cont d) On the external sector, the significant fall in global oil prices is expected to result in lower export income for Malaysia. However, this is expected to be cushioned by a likely increase in external demand for Malaysia s exports of manufactured products, as the global recovery continues. In addition, the current low oil prices should help to boost global consumption and therefore will provide support to the export sector. In 2015, headline inflation is expected to remain within the range of 2.5% - 3.5%. While the implementation of GST is expected to exert upward pressure on inflation, the low retail pump prices and a more moderate domestic demand should help to mitigate the impact. The postponements of scheduled electricity hike and gas price hike for industrial sector in 2015 are also likely to contain domestic cost pressure. On concern about volatility in capital flow, Malaysia s strong fundamentals, such as sufficient international reserves, deeper and diversified financial markets, and strong domestic institutional investors should provide resilience against volatility. Considering the risks surrounding the economy, the monetary policy stance by BNM is expected to be in line with the objective of supporting the domestic economy, while remaining vigilant to the risks of inflationary pressure and financial imbalances. On fiscal policy, the Government s revision on the 2015 Budget to ensure fiscal consolidation remains on track reflects its firm commitment to continue reducing the fiscal deficit. Despite the risks to the economy, the banking sector will continue to be supportive of economic growth and operate as an effective financial intermediary. Lending activities will be supported by the steady economic growth and accommodative policies. Banks are expected to continue embark on initiatives to enhance funding position and strengthen their compliance with Basel III requirements. Meanwhile, the risks from high household indebtedness will remain well-contained, supported by healthy balance sheet of households and high degree of vigilance by the Government in managing financial stability. Prospects for the Malaysian insurance and takaful industry are expected to remain favourable in The steady economic growth prospects, growing affluence among the middle income population, healthy consumer spending power, low insurance penetration rate, innovation in insurance products and services, and improved risk management and business practices will continue to support growth of the industry. Also, the eventual implementation of the proposed Life Insurance and Family Takaful Framework is expected to further develop the industry as life insurers and family takaful operators would be given greater operational flexibility for product innovation, wider distribution channels and higher productivity 264 LPI CAPITAL BHD ANNUAL REPORT 2014

10 ANALYSIS OF SHAREHOLDINGS As At 7 January 2015 Authorised share capital Issued and fully paid-up share capital Class of shares Voting rights RM500,000,000 RM221,323,980 comprising 221,323,980 ordinary shares of RM1.00 each Ordinary shares of RM1.00 each One (1) vote per ordinary share DISTRIBUTION OF SHAREHOLDINGS BASED ON RECORD OF DEPOSITORS Shareholders No. of Shares Held Malaysia Foreign Malaysia Foreign Size of Shareholdings No. % No. % No. % No. % Less than 100 shares ,591 *1 190 * ,000 shares 1, , ,170 *1 1,001 10,000 shares 2, ,661, , , ,000 shares ,600, ,390, ,001 to 11,066,198 (less than 5% of issued shares) ,941, ,616, ,066,199 (5% of issued shares) and above ,596, ,182, Total 5, ,690, ,633, Note: * 1 Less than 0.01%. GROWTH DRIVEN VALUE CREATION 265

11 ANALYSIS OF SHAREHOLDINGS As At 7 January 2015 (cont d) TOP THIRTY SECURITIES ACCOUNT HOLDERS BASED ON RECORD OF DEPOSITORS (Without aggregating the securities from different securities accounts belonging to the same Depositor) Name of Shareholders No. of Shares Held % of Issued Shares 1. Consolidated Teh Holdings Sdn Berhad 94,596, NIPPONKOA INSURANCE CO., LTD. 17,182, Public Invest Nominees (Tempatan) Sdn Bhd Public Bank Group Officers Retirement Benefits Fund 10,425, Maybank Nominees (Tempatan) Sdn Bhd Maybank Trustees Berhad for Public Regular Savings Fund 7,010, HSBC Nominees (Asing) Sdn Bhd BNP Paribas Secs Svs Lux for Aberdeen Global 4,001, HSBC Nominees (Asing) Sdn Bhd BNP Paribas Secs Svs Paris for Aberdeen Asian Smaller Companies Investment Trust Plc 3,200, Tan Sri Dato' Sri Dr. Teh Hong Piow 3,123, AmanahRaya Trustees Berhad Public Savings Fund 2,790, AmanahRaya Trustees Berhad Public Index Fund 2,291, Public Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Consolidated Chan Realty Sdn Bhd (E-KUG) 2,038, Teo Ah Chiang Kee Foon 1,934, AmanahRaya Trustees Berhad Public Dividend Select Fund 1,819, AmanahRaya Trustees Berhad Public Growth Fund 1,737, NIPPONKOA INSURANCE CO., LTD. 1,720, Tunku Osman Ahmad 1,712, LPI CAPITAL BHD ANNUAL REPORT 2014

12 ANALYSIS OF SHAREHOLDINGS As At 7 January 2015 (cont d) Name of Shareholders No. of Shares Held % of Issued Shares 16. Public Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Ang Beng Poh (BMM) 1,447, Olive Lim Swee Lian 1,320, AmanahRaya Trustees Berhad Public Equity Fund 1,295, Citigroup Nominees (Tempatan) Sdn Bhd Employees Provident Fund Board (Aberdeen) 1,252, GHS Strategic Holdings Sdn Bhd 1,140, Public Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Ang Beng Poh (E-BMM) 1,127, AmanahRaya Trustees Berhad As 1Malaysia 1,091, AmanahRaya Trustees Berhad Public South-East Asia Select Fund 1,049, CIMB Commerce Trustee Berhad Public Focus Select Fund 995, HLB Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Lee Chin Guan 910, AmanahRaya Trustees Berhad Amanah Saham Bumiputera 2 854, AmanahRaya Trustees Berhad Public Sector Select Fund 807, Seah Heng Lye 765, Geh Cheng Hooi 759, CIMB Group Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Ang Beng Poh (WHH Corporation) 697, Total 171,097, GROWTH DRIVEN VALUE CREATION 267

13 ANALYSIS OF SHAREHOLDINGS As At 7 January 2015 (cont d) SUBSTANTIAL SHAREHOLDERS BASED ON REGISTER OF SUBSTANTIAL SHAREHOLDERS Direct Interests Indirect Interests Total Name of Shareholders No. of Shares Held % of Issued Shares No. of Shares Held % of Issued Shares No. of Shares Held % of Issued Shares 1. Consolidated Teh Holdings Sdn Berhad 94,596, % ,596, % 2. Nipponkoa Insurance Co., Ltd 18,902, % ,902, % 3. Tan Sri Dato Sri Dr. Teh Hong Piow 3,123, % 94,676,800* % 97,800, % DIRECTORS DIRECT AND INDIRECT INTERESTS IN SHARES IN THE COMPANY BASED ON REGISTER OF DIRECTORS SHAREHOLDINGS Direct Interests Indirect Interests Total Name of Directors No. of Shares Held % of Issued Shares No. of Shares Held % of Issued Shares No. of Shares Held % of Issued Shares 1. Tan Sri Dato Sri Dr. Teh Hong Piow 3,123, % 94,676,800* % 97,800, % 2. Tan Sri Datuk Seri Utama Thong Yaw Hong 520, % 170,000* % 690, % 3. Mr. Tan Kok Guan ,000* % 350, % 4. Dato Yeoh Chin Kee 90, % , % 5. Mr. Tee Choon Yeow 640, % , % 6. Dato' Haji Abdul Aziz bin Dato' Dr. Omar Mr. Quah Poh Keat Note: * 1 Deemed interests in LPI shares held by other corporations by virtue of Section 6A(4) of the Companies Act, 1965 and held by person(s) connected as defined per Section 122A of the Companies Act, * 2 Deemed interests in LPI shares held by person(s) connected as defined per Section 122A of the Companies Act, LPI CAPITAL BHD ANNUAL REPORT 2014

14 AUTHORISED AND ISSUED SHARE CAPITAL AUTHORISED SHARE CAPITAL The authorised share capital as at 7 January 2015 is RM500,000,000 divided into 500,000,000 ordinary shares of RM1.00 each. The changes in the authorised share capital are as follows :- Date Increase in Authorised Share Capital (RM) Total Authorised Share Capital (RM) ,000,000 1,000, ,000,000 5,000, ,000,000 10,000, ,000,000 30,000, ,000, ,000, ,000, ,000,000 ISSUED AND PAID-UP SHARE CAPITAL The issued and paid-up share capital as at 7 January 2015 is RM221,323,980 comprising of 221,323,980 ordinary shares of RM1.00 each. The changes in the issued and paid-up share capital are as follows :- Date of Allotment No. of Shares Allotted Consideration Total Issued and Paid-up Share Capital (RM) Subscribers Shares ,998 Allotment of Shares to Essex Securities Ltd and Montreal Trust Company ,000,000 Bonus Issue 1:2 of 500,000 ordinary shares of RM1.00 each and Allotment of 1,500,000 ordinary shares of RM1.00 each to Kuala Lumpur Holdings Sdn. Berhad, Far Eastern Oriental Sdn. Berhad and Mr. Fred Eu Keng Fai ,000,000 Allotment of ordinary shares of RM1.00 each to Wei Woo Estates & Investment Limited, Hong Kong, in exchange of 6,000,000 shares of HK$1.00 each in Wei Woo Estates & Investment Limited 1,000,000 3,000,000 6,000, ,000,000 Rights Issue 1:3 at RM1.00 8,000, ,000,000 Allotment of 7 1/2% Convertible Preference Shares of RM0.50 each to Selected Holdings Sdn. Berhad ,800,000 Capitalisation of share premium account, capital reserve account and revenue reserve account (Bonus Issue 4:5) ,900,000 Capitalisation of share premium account and revenue reserve account (Bonus Issue 1:2) ,880,000 Capitalisation of unappropriated profits (Bonus Issue 2:5) 11,000,000 19,800,000 29,700,000 41,580, ,880,000 Rights Issue 2:5 at RM ,460,000 GROWTH DRIVEN VALUE CREATION 269

15 AUTHORISED AND ISSUED SHARE CAPITAL (cont d) Date of Allotment No. of Shares Allotted Consideration Total Issued and Paid-up Share Capital (RM) ,460,000 Capitalisation of share premium reserve account (Bonus Issue 1:1) ,000 Exercise of share options under LPI ESOS at option price of RM2.60 per share ,000 Exercise of share options under LPI ESOS at option price of RM2.60 per share ,739,000 Subscription of new ordinary shares of LPI by NIPPONKOA INSURANCE CO., LTD. at RM3.81 per share ,000 Exercise of share options under LPI ESOS at option price of RM3.29 per share ,117,000 Exercise of share options under LPI ESOS at option price of RM3.29 per share ,000 Exercise of share options under LPI ESOS at option price of RM3.29 per share ,237,000 Exercise of share options under LPI ESOS at option price of RM3.29 per share ,857,000 Exercise of share options under LPI ESOS as follows :- - 1,773,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows : ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows : ,000 shares at option price of RM3.29-4,000 shares at option price of RM ,000 shares at option price of RM ,545,000 Exercise of share options under LPI ESOS as follows :- - 1,050,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows : ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,583,000 Exercise of share options under LPI ESOS as follows : ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,920, ,355, ,398, ,137, ,610, ,727, ,159, ,396, ,253, ,872, ,793, ,338, ,318, ,901, LPI CAPITAL BHD ANNUAL REPORT 2014

16 AUTHORISED AND ISSUED SHARE CAPITAL (cont d) Date of Allotment No. of Shares Allotted Consideration Total Issued and Paid-up Share Capital (RM) ,257,000 Exercise of share options under LPI ESOS as follows : ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,653,000 Exercise of share options under LPI ESOS as follows :- - 94,000 shares at option price of RM ,000 shares at option price of RM3.76-4,888,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 27,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 3,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 1,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 3,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM3.66-8,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 42,000 shares at option price of RM ,000 shares at option price of RM3.66-3,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,158, ,811, ,246, ,438, ,368, ,656, ,927,000 GROWTH DRIVEN VALUE CREATION 271

17 AUTHORISED AND ISSUED SHARE CAPITAL (cont d) Date of Allotment No. of Shares Allotted Consideration Total Issued and Paid-up Share Capital (RM) ,000 Exercise of share options under LPI ESOS as follows :- - 1,000 shares at option price of RM ,000 shares at option price of RM5.94-3,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 26,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 55,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM6.29-3,000 shares at option price of RM ,000 Exercise of share options under LPI ESOS as follows :- - 3,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM3.66-1,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,000 shares at option price of RM ,834,150 Capitalisation of share premium reserve account (Bonus Issue 1:2) 137,950, ,011, ,176, ,723, ,557, ,766,830 Rights Issue 1:10 at RM ,323, LPI CAPITAL BHD ANNUAL REPORT 2014

18 PARTICULARS OF PROPERTY HELD BY THE GROUP Location Units 02-39, 02-41, and Goldhill Plaza Newton Road Singapore Description 2 nd floor of 6 storey building Current use Rented out to third parties Tenure Leasehold 999 years Remaining lease period (Expiry date) 956 years (26 February 2971) Age of property 43 years Built-up area 4,952 sq. ft Net book value RM25,205,000 Date of acquisition 26 February 1972 Date of last revaluation 19 December 2014 GROWTH DRIVEN VALUE CREATION 273

19 INTERNATIONAL NETWORK Cambodia Malaysia Singapore 274 LPI CAPITAL BHD ANNUAL REPORT 2014

20 GROUP CORPORATE DIRECTORY HEAD OFFICE 6 th Floor, Bangunan Public Bank, 6, Jalan Sultan Sulaiman, Kuala Lumpur, Malaysia. Tel No. : (603) / Fax No. : (603) SUBSIDIARY LONPAC INSURANCE BHD Head Office LG, 6 th 7 th, 21 st 26 th Floor, Bangunan Public Bank, 6, Jalan Sultan Sulaiman, Kuala Lumpur. P.O. Box Kuala Lumpur. Tel No. : (603) / Fax No. : (603) / / / / / / Website : Northern Region Head of Northern Region: Mr. James Kong Wai Mun Tel No. : (605) Fax No. : (605) / jameskong@lonpac.com Alor Setar Branch No. 4 & 5, 2 nd Floor, No. 55, Bangunan Emum 55, Jalan Gangsa, Kawasan Perusahaan Mergong 2, Alor Setar, Kedah. Mr. Beh Seng Tong Tel No. : (604) / Fax No. : (604) stbeh@lonpac.com Penang Branch Ground & 1 st Floor, Wisma Giap Chew, No. 28, Lebuh Gereja, Penang. Ms. Lillian Koh Gim Ping Tel No. : (604) Fax No. : (604) lilliankoh@lonpac.com Taiping Branch 1 st Floor, No. 9, Persiaran Taiping, Taiping, Perak. Mr. Ong See Boon Tel No. : (605) / Fax No. : (605) sboonong@lonpac.com Sitiawan Branch No. 205 (1 st Floor) Jalan Leo Desa Bintang Sitiawan, Perak. Mr. Aw Seng Oo Tel No. : (605) / Fax No. : (605) soaw@lonpac.com Ipoh Branch 36, Jalan Dato Onn Ja afar, Ipoh, Perak. Mr. Moh Wai Kit Tel No. : (605) Fax No. : (605) / wkmoh@lonpac.com Central Region Head of Central Region: Mr. Yow Kai Fook Tel No. : (603) Fax No. : (603) kfyow@lonpac.com Kajang Branch No & 13-2, Jalan KP1/3, Kajang Prima, Kajang, Selangor Darul Ehsan. Ms. Vivience Lee Sau Fong Tel No. : (603) Fax No. : (603) viviencelee@lonpac.com Klang Branch No. 2-08, 8 th Floor, Menara Empire, Jalan Empayar, Off Persiaran Sultan Ibrahim/KU1, Klang Bandar Diraja, Selangor Darul Ehsan. Mr. Alex Ong Wen Hsiung Tel No. : (603) Fax No. : (603) whong@lonpac.com Southern Region Head of Southern Region: Mr. Raymond Tan Soo Boon Tel No. : (606) Fax No. : (606) / raymondtan@lonpac.com Seremban Branch No. 496, Jalan Haruan 4/4, Oakland Commercial Centre, Seremban, Negeri Sembilan. Mr. Gavin Tan Poh Teck Tel No. : (606) Fax No. : (606) pttan@lonpac.com Melaka Branch No. 7 & 9, Jalan Melaka Raya 11, Taman Melaka Raya, Melaka. Mr. Yong Chee Chean Tel No. : (606) Fax No. : (606) / ccyong@lonpac.com JOHOR STATE Head of Johor State: Mr. Soh Jiun Hong Tel No. : (607) Fax No. : (607) jhsoh@lonpac.com Segamat Branch No. 24-A, Jalan Genuang Perdana, Taman Genuang Perdana, Segamat, Johor. Mr. Sebastian Tan York Chung Tel No. : (607) / Fax No. : (607) sebastiantan@lonpac.com GROWTH DRIVEN VALUE CREATION 275

21 GROUP CORPORATE DIRECTORY (cont d) Batu Pahat Branch 13, Jalan Flora Utama 1, Taman Flora Utama, Batu Pahat, Johor. Ms. Loh Siew Hwee Tel No. : (607) / Fax No. : (607) shloh@lonpac.com Johor Bahru Branch Suite No , 25 th Floor, Public Bank Tower, No. 19, Jalan Wong Ah Fook, Johor Bahru, Johor. Mr. Soh Jiun Hong Tel No. : (607) Fax No. : (607) jhsoh@lonpac.com Sarawak Region Head of Sarawak Region: Mr. Wong Shon Kwang Tel No. : (6082) Fax No. : (6082) skwong@lonpac.com Kuching Branch Lot 258 & 259, Section 49, KTLD (1 st Floor), Jalan Chan Chin Ann, Kuching, Sarawak. Mr. Wong Shon Kwang Tel No. : (6082) Fax No. : (6082) skwong@lonpac.com Sibu Branch No. 4 & 6, 1 st Floor, Lorong Pedada 20A Sibu, Sarawak. Mr. Joseph Pang Neng Liong Tel No. : (6084) / Fax No. : (6084) nlpang@lonpac.com Miri Branch Lot 1293, 1 st and 2 nd Floor, Centre Point, Jalan Melayu, Miri, Sarawak. Mr. Desmond Ng Tin Fong Tel No. : (6085) / / Fax No. : (6085) desmondng@lonpac.com Sabah Region Head of Sabah Region: Mr. Nicholas Wong Kok Choong Tel No. : (6088) / / Fax No. : (6088) nicholaswong@lonpac.com Kota Kinabalu Branch Level 9, Wisma Fook Loi, No. 38, Jalan Gaya, Kota Kinabalu, Sabah. Ms. Veronica Chin Nyuk Lan Tel No. : (6088) / / Fax No. : (6088) veronicachin@lonpac.com Sandakan Branch 4 th Floor, Menara Rickoh, Indah Commercial Complex, Bandar Indah, Mile 4, North Road, Sandakan, Sabah. Mr. Dominic Voo Chen Chung Tel No. : (6089) Fax No. : (6089) dominicvoo@lonpac.com Tawau Branch TB4427 & TB4428, 1 st Floor, Block C, Sabindo Square, Jalan Dunlop, Tawau, Sabah. Mr. Peter Gau Fui Ming Tel No. : (6089) / Fax No. : (6089) petergau@lonpac.com Branch Offices Kuantan Branch B-62B, 1 st Floor, Lorong Tun Ismail 8, Sri Dagangan II, Kuantan, Pahang. Mr. Yong Kim Keong Tel No. : (609) / / Fax No. : (609) kkyong@lonpac.com Kuala Terengganu Branch Lot 5032-B Jalan Sultan Zainal Abidin, Kuala Terengganu, Terengganu. Encik Yaakub Bin Abu Bakar Tel No : (609) / Fax No : (609) yaakubabubakar@lonpac.com Kota Bharu Branch No. PT 285, Tingkat 2, Jalan Kebun Sultan, Kota Bharu, Kelantan. Mr. Won Pier Chyuan Tel No. : (609) / Fax No. : (609) pcwon@lonpac.com Singapore Branch 100, Beach Road #19-00, Shaw Tower, Singapore Chief Executive: Mr. Yap Chee Kiat Tel No. : (02) Fax No. : (02) ckyap@lonpac.com ASSOCIATED COMPANY CAMPU LONPAC INSURANCE PLC Head Office 7 th Floor, Campu Bank Building, No. 23, Kramuon Sar Avenue (Street No. 114), Sangkat Phsar Thmey II, Khan Daun Penh, Phnom Penh, Cambodia. General Manager: Mr. Chan Lek Wei Tel No. : (855) / / Fax No. : (855) / chan.lekwei@campulonpac.com.kh Website : LPI CAPITAL BHD ANNUAL REPORT 2014

22 (Incorporated in Malaysia) Form of Proxy I/ We NRIC (New)/ Company No.: (INSERT FULL NAME IN BLOCK CAPITAL) of (FULL ADDRESS) being a member/ members of LPI CAPITAL BHD, hereby appoint* (INSERT FULL NAME IN BLOCK CAPITAL) NRIC (New) No.: and/ or of (INSERT FULL NAME IN BLOCK CAPITAL) of (FULL ADDRESS) (FULL ADDRESS) NRIC (New) No.: or failing him/ her, the Chairman of the Meeting as *my/ our proxy/ proxies to attend and vote for *me/ us on *my/ our behalf, at the Fifty-Fourth Annual General Meeting of the Company to be held at Sabah Room, Basement II, Shangri-La Hotel Kuala Lumpur, 11 Jalan Sultan Ismail, Kuala Lumpur on Monday, 9 March 2015 at a.m., or any adjournment thereof, to vote as indicated below: No. Resolution For Against Ordinary Business 1. Receipt of Audited Financial Statements for the financial year ended 31 December 2014 and the Reports of the Directors and Auditors thereon. 2. Re-election of Mr. Tan Kok Guan as Director. 3. Re-election of Dato Haji Abdul Aziz bin Dato Dr. Omar as Director. 4. Re-appointment of Tan Sri Dato Sri Dr. Teh Hong Piow as Director. 5. Re-appointment of Tan Sri Datuk Seri Utama Thong Yaw Hong as Director. 6. Approval of payment of Directors fees. 7. Re-appointment of Auditors and to authorise the Directors to fix the Auditors remuneration. (Please indicate with an X in the space provided above on how you wish your vote to be cast. If you do not do so, the Proxy(ies) will vote or abstain from voting at his/ her discretion.) Dated this day of 2015 No. of ordinary shares held : CDS Account No. : Proportion of shareholdings to be represented by proxies : First Proxy : % Second Proxy : % Signature of Member/ Common Seal Contact No. : NOTES: 1. Only depositors whose names appear in the Record of Depositors as at 27 February 2015 be regarded as members and entitled to attend, speak and vote at the meeting. 2. A member entitled to attend and vote at the meeting is entitled to appoint not more than two (2) proxies (or in the case of a corporation, a duly authorised representative) to attend and vote in his/ her stead. A proxy may but need not be a member of the Company and the provision of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company. 3. Where a member of the Company is an authorised nominee as defined in the Securities Industry (Central Depositories) Act, 1991, it may appoint not more than two (2) proxies in respect of each securities account it holds in ordinary shares of the Company standing to the credit of the said securities account. 4. Where a member appoints two (2) proxies, the appointment shall be invalid unless he specifies the proportion of his shareholdings to be represented by each proxy. 5. 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 the Securities Industry (Central Depositories) Act 1991 which is exempted from compliance with the provisions of subsection 25A(1) of the said Act. 6. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing or, if the appointer is a corporation, either under its common seal or under the hand of an officer or attorney duly authorised. 7. The instrument appointing a proxy must be deposited at the office of the Share Registrar, Tricor Investor Services Sdn Bhd at Level 17, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Kuala Lumpur, Malaysia not less than forty-eight (48) hours before the time set for the holding of the meeting or at any adjournment thereof.

23 Fold Here STAMP Share Registrar Tricor Investor Services Sdn Bhd Level 17, The Gardens North Tower Mid Valley City Lingkaran Syed Putra Kuala Lumpur Malaysia Fold Here

24 2 LPI CAPITAL BHD ANNUAL REPORT 2014