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Bandar Raya Developments Berhad annual report 2009

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The BRDB Story Group Corporate Structure Corporate Information Board of Directors Board of Directors' Profile Letter to Our Shareholders Surat kepada Pemegang Saham Review of Operations Engaging with Our Communities in 2009 Group Corporate Calendar

Contents

54 | Financial Highlights 56 | Share and Warrant Price Performance 58 | Corporate Governance Statement 62 | Audit Committee Report 66 | Statement on Internal Control 70 | Financial Statements 166 | Analysis of Shareholdings 170 | Analysis of Warrantholdings 173 | List of Properties 179 | Notice of Annual General Meeting 182 | Statement Accompanying Notice of Annual General Meeting Form of Proxy

The BRDB Story

Voted as one of the Top Ten Property Developers in Malaysia for 7 years consecutively from 2003 to 2009 by The Edge Malaysia Top Property Developers Awards, BRDB's vision is to bring their unique quality and creativity to any environment that can enrich people's lives.

The BRDB Story In 1964, Bandar Raya Developments Berhad was incorporated as a property development company, and in 1965 launched its first community in Bangsar. Based on the success of this development, the company was listed on the Kuala Lumpur Stock Exchange (now Bursa Malaysia), and today, 45 years since its launch, has become one of Malaysia's foremost property development, property management and property investment companies, known for developing iconic communities that stand the test of time. The company's success stems from three core principles ­ its commitment to quality and craftsmanship that result in addresses of enduring value; listening to customers and keeping a close eye on market trends, and matching these with properties that set price and quality benchmarks, and its philosophy of investing and reinvesting in its communities, that has resulted in a strong, loyal following for the brand. Voted as one of the Top Ten Property Developers in Malaysia for 7 years consecutively from 2003 to 2009 by The Edge Malaysia Top Property Developers Awards, BRDB's vision is to bring their unique quality and creativity to any environment that can enrich people's lives. Building tomorrow's landmarks Bangsar, a true microcosm of Malaysia BRDB's first property development project was in Bukit Bandaraya, Bangsar, where it built landed properties and condominiums, recognized for their excellent quality. BRDB's philosophy of continuously investing and reinvesting in the locality, through its subsequent projects like Bangsar Hill, Palmyra and Sri Penaga, have helped property values in Bangsar to increase manifold over the years. It owns and manages the ever-popular Bangsar Shopping Centre (BSC), a magnet

6| BRDB ANNUAL REPORT 2009 THE BRDB STORY

for the local community, as well as for stylish KL-ites from around the city. In 2008, BRDB undertook an extensive renovation and refurbishment exercise for BSC, which was completed at the end of 2009 and has resulted in a refreshed and re-energized centre, featuring the latest in F&B and retail offerings to complement long-standing tenants that are favourites with its loyal visitors. These include O Gourmet, a veritable haven of fine foods and ingredients, which has become a must-visit destination for foodies around the city. A Malaysian first, this stunning food hall is one of the new highlights of the refreshed neighbourhood mall, along with MyPlayroom, the kids zone located on the top floor of the centre. BRDB Tower, a 12-storey Grade A office building located adjacent to BSC, will be completed in 2010 and will become the home of the BRDB company as well as other tenants. These additions will further improve BSC's customer catchment, and

create a stronger asset base for recurring income. Its latest development in Bangsar is the luxury condominium development One Menerung. Located immediately adjacent to BSC, the first phase of this development was sold out at launch, attesting to BRDB's continued success at building properties that meet the demands of local and international buyers. One Menerung buyers received the keys to their new homes in November 2009. The iconic Troika In 2004, recognizing increased international investment interest in highvalue Asian properties, and the need for Malaysia to have a globally-recognized residential icon, BRDB spearheaded a partnership with world-celebrated architects Foster & Partners to create The Troika. Comprising 3 stunning glass-faced towers and a unique shear wall design, this uber-

stylish development, located immediately adjacent to the world-famous Petronas Twin Towers, has attracted a global community of buyers, and firmly cemented Kuala Lumpur's position as a property investment destination of choice. The development also features select retail space, which, when opened in 2010, will feature stylish lifestyle tenants, creating further opportunity for rental income. Prices of The Troika have reached RM2,500 per sq ft, up from RM1,000 per sq ft when launched in 2007, setting a new benchmark for the KL City Centre property market. In 2008, this iconic development won the CNBC International Property Awards 5-Star Best High Rise Residential Asia-Pacific, CNBC International Property Awards 5-Star Best Architecture AsiaPacific and Cityscape Best Developer, Future Residential Category awards; further testament to The Troika's global appeal.

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THE BRDB STORY

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BRDB made waves in the local commercial property market in early 2008 when it sold one of the office towers -- a 41-storey Grade A office building -- to Union Investment Real Estate AG, one of Europe's leading investment management companies. It was the European company's first foray into the property investment sector in Malaysia. CapSquare's retail centre is fast establishing itself as the city's new dining and entertainment hub featuring a mix of new brands as well as popular favorites like Starbucks, Modesto's, London's Four Seasons Restaurant featuring the world famous Cantonese Roast Duck and Bayernhaus offering authentic German cuisine. Other anchor tenants include TGV Cinemas and Clark Hatch Fitness Centre. Permas Jaya, a landmark neighbourhood down south Permas Jaya, BRDB's development in Johor Baru, is one of the southern city's most appealing addresses. Launched in 1981, BRDB has progressively invested in the development of this neighbourhood, resulting in property values that continue to appreciate. Anchored by the ever-busy Permas Jusco and the adjacent Permas Mall, this neighbourhood is now seeing even more interest from investors in Malaysia, Singapore and Indonesia, all keen on tapping into an expected appreciation in

value given the launch of the Iskandar Malaysia development region. In 2010, BRDB will launch a gated community in Permas Jaya, called the Straits View Residences. The 218 semidetached houses and bungalows, set on 35 acres of prime land, will allow the company to bring more of the BRDB brand and its creative, innovative approach to Johor Baru. Building global landmarks In 2006, BRDB made its maiden venture overseas, launching the Defence Raya Golf Resort in Pakistan's cultural and social capital of Lahore. The 7-year masterplanned development, a first for Pakistan, met with keen interest and set new pricing levels in the city. In July 2009, BRDB announced jointventure plans with Amouage Hotels & Resorts LLC, Oman for the proposed development of an integrated real estate tourism project on about 99 acres of land in Muscat, in the Sultanate of Oman. The development plans are currently being submitted; BRDB aims to launch the project masterplan in 2011. BRDB's commitment to quality and craftsmanship has resulted in properties that stand the test of time and continue to appreciate in value; a true testament of its aim of creating tomorrow's iconic communities today.

CapSquare ­ a new midtown destination for KL-ites The heart of Kuala Lumpur's midtown has long been a mix of old shophouses and small pockets of modern commercial spaces. BRDB has taken the bold step of bringing a new level of modernity to this midtown area, by carving out a 15-acre integrated development that features the best of commercial and retail spaces, anchored by stylish inner-city luxury condominiums. Harnessing the energy ever-present in the city, CapSquare features a striking 400m retail street, a 4 storey retail centre, as well as Grade A signature offices and commercial spaces. It has a natural catchment from its base of office workers from the FIABCI-award winning Menara Multi-Purpose and the residents of the CapSquare Residences. Further growth is expected when two planned office towers are completed in coming years. BRDB will also launch its second residential development here ­ 6 CapSquare Residences, in 2010.

Thirty-five years later, MIECO has cemented its position as a world-leader in the manufacture of particleboards, with special emphasis on the production of high quality, value-added wood-based products. The brand is a true global Malaysian champion. MIECO's growth comes from its commitment to three operating fundamentals ­ a high quality product, an excellent delivery process, supported by a strong focus on customer service. Among its many achievements, MIECO has managed to successfully penetrate the highly competitive but lucrative China market. In recent years, MIECO has leveraged on the expanding property development markets in India and the Middle-East, making firm inroads into these markets. It is also fast making progress in the growing Eastern European economies. MIECO's products are now marketed in more than 20 countries around the world, and its global footprint now covers the US, Europe, North and South Asia, as well as some parts of Africa. Adding to its expanding list of value-added products, MIECO, in collaboration with its technology partner from Pfleiderer, Germany, introduced MIECO Decorative High Pressure Laminates Chipboard (HPLC) with its unique high-pressure laminates incorporating anti-bacteria properties, micro-PLUS, designed with high-gloss and high-abrasion resistance and stone textures. All MIECO products meet global quality and environmental standards, and the company continues to explore new and innovative ways to reduce emissions and production waste. MIECO has three factories, located in Semambu, Gebeng and Kechau Tui in the east coast state of Pahang, with a combined capacity of 900,000 cubic metres per annum. It also has the singlelargest particleboard line in the Asia Pacific region. Being an integral part of the communities in which we operate BRDB's vision as a property development and property investment company is to build iconic communities that stand the test of time. Time and experience have proven that there is no better way of ensuring the continued value of an address than to make it iconic, and BRDB have therefore made the commitment to its stakeholders to deliver on this promise in each and every one of its communities. The company recognizes that whilst we can build the infrastructure and "hardware" ­ be it houses, condominiums or shopping centres ­ to house a community, it is the soul of the community that makes it iconic. And the soul of a community comes from the traditions, the talent, the craftsmanship and the heritage of its people. As one of Malaysia's oldest property companies, BRDB is cognizant of its responsibility and is privileged to recognize and celebrate the best of the talent and traditions of the communities in which it operates. The company's community outreach activities therefore focus on honouring and celebrating the festivals and the arts, the talent and the heritage of our communities, especially with the involvement of future generations. BRDB is also committed to the development of its people, ensuring that all members of its extensive global community strive to live up to the company's values of being proactive, engaging and responsive. The Group firmly believes that in order to succeed, it must be relentless in its efforts to actively engage with all stakeholder groups ­ big and small ­ to build lasting, mutually-rewarding relationships that stand the test of time. And it is its commitment to this belief that makes BRDB one of Malaysia's most enduring brands.

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MIECO : a global champion in wood-based manufacturing BRDB's manufacturing arm, Mieco Chipboard Berhad, was established in 1972, and is also listed on Bursa Malaysia. It commissioned its first production line in 1976, making it the pioneer in particleboard manufacturing in Malaysia.

THE BRDB STORY

Group Corporate Struct

As At 20 April 2010

Permas Jaya Sdn Bhd Permas Jaya Golf and Recreation Sdn Bhd Permas Point Sdn Bhd

70%

100%

99.74%

Capital Square Management Sdn Bhd Capital Square Sdn Bhd Capital Square Hotels Sdn Bhd

100%

100%

70%

BR Property Holdings Sdn Bhd BR Property Management Sdn Bhd South-Pacific Triumph (M) Sdn Bhd

100%

Raintree Forest Sdn Bhd

100%

100%

100%

Bandar Raya Developments * Berhad

Freedom Estates Sdn Bhd

Victory Realty Sdn Bhd

Vital Edition Sdn Bhd

100%

O' Gourmet Sdn Bhd

100%

BSC Bistro Sdn Bhd #

100%

Midwest Profits Sdn Bhd

60%

Ardent Heights Sdn Bhd

40%

Hexagon Capital Sdn Bhd

60%

B-House Sdn Bhd

100.00%

Puncak Estetik Sdn Bhd

100%

100%

80%

BRDB (International) Limited

70%

BRDB Land (Private) Limited Defence Raya Golf & Country Club (+)

99.99%

50%

Mieco Manufacturing Sdn Bhd 100% Mieco Marketing (S) Pte Ltd 100% Mieco International (H.K.) Limited 100% Mieco Wood Products Sdn Bhd 100%

Listed on Bursa Malaysia Securities Berhad Associated Company Jointly Controlled Entity

*

# +

Mieco Chipboard Berhad *

56.76%

ture

Permas Jaya Property Management Sdn Bhd

100%

Permas Jaya Hotels and Properties Sdn Bhd 100%

Permas Jaya Resorts Development Sdn Bhd

Corporate Information

Board Of Directors Dato' Mohamed Moiz Bin J M Ali Moiz Non-Independent Non-Executive Chairman Dato' Jaganath Derek Steven Sabapathy Chief Executive Officer Datin Sri Maria Bettina Chua Binti Abdullah Executive Director General (R) Tan Sri Dato' Seri Mohd Zahidi Bin Hj Zainuddin Independent Non-Executive Director

100%

Capital Square Properties Sdn Bhd

Capital Square Car Park Sdn Bhd

100%

100%

Aliran Danau Sdn Bhd

Mendigo Corporation Sdn Bhd

Impiana Impresif Sdn Bhd

Mr Vijeyaratnam A/L V. Thamotharam Pillay Independent Non-Executive Director Encik Azlan Bin Abdullah Independent Non-Executive Director Registered Office 31st Floor, Menara Multi-Purpose Capital Square, No. 8 Jalan Munshi Abdullah 50100 Kuala Lumpur, Malaysia Tel: 603-2694 6622 Fax: 603-2694 1922 Bursa Malaysia Stock Number BRDB 1473 BRDB-WA 1473WA

100%

100%

100%

Ambangan Assets Sdn Bhd

KL Arts City Sdn Bhd #

100%

Pleasant Financial Ltd

40%

100%

BRD Marketing Sdn Bhd Tridenteam Sdn Bhd BR Recreation Sdn Bhd

International Securities Identification Number (ISIN) MYL1473OO007 Reuters Code BRDS, KL Secretary Ho Swee Ling Registrars MAICSA No. 7009936 MYL1473WAM90

100%

100%

100%

BRD Construction Sdn Bhd

BRDB (Oman) Limited

100%

100%

Metra Management Sdn Bhd 30.02, 30th Floor, Menara Multi-Purpose Capital Square, No. 8 Jalan Munshi Abdullah 50100 Kuala Lumpur, Malaysia Tel: 603-2698 3232 Fax: 603-2698 0313 Auditors Messrs PricewaterhouseCoopers

Mieco Marketing Sdn Bhd 100% Tudor Capital Sdn Bhd 100%

Mieco Chemicals Sdn Bhd 100% Mieco Wood Resources Sdn Bhd 100%

Aspire Benchmark Sdn Bhd 100% Mieco Reforestation Sdn Bhd 100%

Bankers Alliance Bank Malaysia Berhad Malayan Banking Berhad OCBC Bank (Malaysia) Berhad AmBank (M) Berhad HSBC Bank Malaysia Berhad The Bank of Nova Scotia Berhad RHB Bank Berhad

Mr T Vijeyaratnam, Independent NonExecutive Director Tan Sri Dato' Seri Mohd Zahidi, Independent Non-Executive Director

Encik Azlan Abdullah, Independent Non-Executive Director

Dato' Jagan Sabapathy, Chief Executive Officer Dato' Mohamed Moiz, Non-Independent Non-Executive Chairman

Datin Sri Bettina Chua Abdullah, Executive Director

Board of Directors

| BRDB ANNUAL REPORT 2009

Board of Directors' Profile

Dato' Mohamed Moiz Bin J M Ali Moiz, Non-Independent Non-Executive Chairman

Dato' Mohamed Moiz Bin J M Ali Moiz, a Malaysian, aged 49, was appointed to the Board on 16 October 2000 and as Chairman on 8 February 2002. He graduated with a Bachelor of Science degree in Business Administration and International Finance in 1985. He joined Timbco Sdn Bhd, a company involved in timber trading, processing and forestry management, as Project Manager from 1985 to 1986. In 1987, he was appointed as Chief Executive Officer of the Tradium group of companies, which have interests in property development, fashion retailing, manufacturing, F & B and equity investments. In 1999, he was appointed as Chief Executive Officer of Effective Capital Sdn Bhd, the company which successfully undertook the migration of the CLOB securities from the Central Depository (Pte) Limited in June 2000. Currently, Dato' Mohamed Moiz also sits on the boards of Mieco Chipboard Berhad (Chairman) and several other private limited companies. He is a member of the Remuneration Committee and Nomination Committee of the Company. Dato' Mohamed Moiz is a deemed major shareholder of the Company by virtue of his interest in Ambang Sehati Sdn Bhd.

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BOARD OF DIRECTORS' PROFILE

Dato' Jaganath Derek Steven Sabapathy, Chief Executive Officer

Dato' Jagan Sabapathy, a Malaysian, aged 53, was appointed to the Board on 17 September 1999. He currently holds the position of Chief Executive Officer, a position he has held since 1 September 1999. He attended Edinburgh University in the United Kingdom and holds a Master of Arts majoring in Corporate Finance and International Trade. Upon graduation in 1981, he joined a leading London firm of Chartered Accountants, Price Waterhouse, where he articled and qualified as a Chartered Accountant. Dato' Jagan returned to Malaysia in 1984 and joined KPMG Peat Marwick. He was admitted as a Partner of KPMG Malaysia and a Director of Peat Marwick Consultants in 1990. Whilst at KPMG Peat Marwick, he was involved in a wide range of assignments covering audit, investigations, management consultancy and corporate finance, in Malaysia, the ASEAN countries, North America and Europe. He sat on a variety of KPMG International Committees including committees for Mergers and Acquisitions, Privatisation and Management Consultancy. He was also an examiner for the professional examinations of the Malaysian Association of Certified Public Accountants. He left the partnership in late 1994 and took up a senior appointment with a Malaysian public listed plantations company. At the end of 1995, he left and led a group of Australian and British investors to successfully privatise the overseas operations of Tasmania's Hydro Electric Commission. He joined the boards of Prime Utilities Berhad and Indah Water Konsortium Sdn Bhd, Malaysia's privatised national waste water utility in September 1997 as Managing Director, a position he held up to August 1999. Currently, Dato' Jagan also sits on the boards of several subsidiaries in the Bandar Raya Developments Berhad Group including Mieco Chipboard Berhad.

Datin Sri Maria Bettina Chua Binti Abdullah, Executive Director

She is the spouse of Dato' Sri Akbar Khan Bin Hj Mohamed Khan, the father of Mr Sascha Saleem Khan and Ms Tania Aishah Khan, who are both deemed major shareholders of the Company. General (R) Tan Sri Dato' Seri Mohd Zahidi Bin Hj Zainuddin, a Malaysian aged 62, was appointed to the Board on 2 November 2006. He holds a Masters of Science Degree in Defence and Strategic Studies from the Quaid-I-Azam University, Islamabad, Pakistan and had attended the Senior Executive Programme in Harvard University, United States of America in 2002. He is a Fellow of the Malaysian Institute of Management. General (R) Tan Sri Dato' Seri Mohd Zahidi has had a distinguished career in the Malaysian Armed Forces for 39 years, before retiring from the Force on 30 April 2005. During the period as a professional military officer, he served 6 years as the Malaysian Chief of Defence Forces from 1 January 1999 and as the Chief of the Malaysian Army for one year from 1 January 1998. Most notable appointments in the Armed Forces held were Aide de Camp to His Majesty Yang Di-Pertuan Agong Sultan Azlan Shah, Commander Infantry Brigade, Assistant Chief of Staff Human Resource, Commander Army Training and Doctrine Command, Deputy Chief of Army and Chief of Army. In international duties, General (R) Tan Sri Dato' Seri Mohd Zahidi served as a Military Observer under the United Nations International Monitoring Group in Iraq after Iran-Iraq War Ceasefire in 1988/1989. Currently, General (R) Tan Sri Dato' Seri Mohd Zahidi also sits on the boards of Affin Holdings Berhad (Chairman), Genting Plantations Berhad (formerly known as Asiatic Development Berhad), Cahya Mata Sarawak Berhad, Wah Seong Corporation Berhad, Bintulu Port Holdings Berhad and Genting Malaysia Berhad (formerly known as Resorts World Berhad). He was made a Member of Dewan Negara Perak, elected by DYMM Paduka Seri Sultan Perak on 25 November 2006 and also a Director of Yayasan Sultan Azlan Shah. He is also made a member of the MalaysianIndonesian Eminent Persons Group elected by the Prime Minister since July 2008. He is the Chairman of the Audit Committee and a member of the Remuneration Committee and Nomination Committee of the Company. Mr Vijeyaratnam A/L V Thamotharam Pillay, a Malaysian, aged 58, was appointed to the Board on 4 December . 2001. He was subsequently redesignated as Independent Non-Executive Director on 23 February 2010. He is a member of the Audit Committee and Remuneration Committee of the Company. He is a Fellow of the Institute of Chartered Accountants in England and Wales and a member of the Malaysian Institute of Accountants. Mr Vijeyaratnam has considerable experience covering areas of auditing, financial planning, general management and corporate advisory in various business environments. He is currently the Managing Director of his own corporate advisory and consultancy company. Presently, Mr Vijeyaratnam also sits on the boards of Mieco Chipboard Berhad, Multi-Purpose Holdings Berhad, Eastern & Oriental Berhad, Fututech Berhad and several other private limited companies in Malaysia. Encik Azlan Bin Abdullah, a Malaysian, aged 52, was appointed to the Board on 4 December 2001. He holds a Bachelor of Science Degree in Business Administration from Trinity University, San Antonio, Texas, USA and a Masters Degree in Business Administration from Morehead State University, Kentucky, USA. He started his career in 1983 with Citibank N.A. and in 1987, he joined United Asian Bank where he started and headed the Treasury Marketing Unit. After United Asian Bank merged with Bank of Commerce, he was subsequently promoted to Head of Priority Banking Division and Branch Manager of KL Main Branch in 1992. In 1994, he rejoined Citibank Berhad as Vice-President and Head of Public Sector Division. He left Citibank Berhad in 1995. At present, he is the Chief Executive Officer of Mycron Steel Berhad and Mycron Steel CRC Sdn Bhd. Currently, Encik Azlan also sits on the boards of Melewar Industrial Group Berhad, Malaysian General Investment Corporation Berhad, HSBC Amanah Malaysia Berhad and several other private limited companies. He is a member of the Audit Committee and Nomination Committee of the Company.

Notes: 1) 2) Save as disclosed above, none of the Directors has any family relationship with any director and/or major shareholder of the Company. None of the Directors has: · any conflict of interest with the Company. · any conviction for offences within the past ten years.

General (R) Tan Sri Dato' Seri Mohd Zahidi Bin Hj Zainuddin, Independent Non-Executive Director

Mr Vijeyaratnam A/L V. Thamotharam Pillay, Independent NonExecutive Director

Encik Azlan Bin Abdullah, Independent Non-Executive Director

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Currently, Datin Sri Bettina also sits on the boards of several subsidiaries in the Bandar Raya Developments Berhad Group including Mieco Chipboard Berhad.

BOARD OF DIRECTORS' PROFILE

Datin Sri Maria Bettina Chua Binti Abdullah, a Malaysian, aged 44, was appointed to the Board as Executive Director on 6 July 2009. She graduated from Chapman University in California in 1988, with a Bachelor of Arts degree in Communications. In 1990, she began a 15-year career in business television broadcasting. From her first assignment at Malaysia's TV3, Datin Sri Bettina went on to become Malaysia's first ever international business journalist with CNBC Asia, based both in Singapore and London. Her final position was as Chief Anchor of CNBC Asia's flagship morning programme Squawk Box, from which she retired in 2005, having twice won the coveted Presenter of Year awards at the Asian Television Awards. She is also an advisor to the Lim Kok Wing University of Creative Arts, and serves on the Council of Advisors at Green School in Bali, Asia's first carbon-neutral educational institute.

Bangsar Shopping Center

Bangsar Shopping Centre (BSC) has been the pulse of the Bangsar, Damansara Heights, Bukit Tunku, Sri Hartamas and Mon't Kiara communities for over 20 years; entire families have grown up calling it their "home away from home". In 2008, this Bangsar icon began a renovation and refurbishment exercise that was completed in 2009. It emerged refreshed and rejuvenated, with a slew of new tenants complementing old favourites, and an expanded F&B offering with everything from fine dining to stylish cafés for a casual coffee. With 223,000 sq ft of retail space, lush green landscaping anchored by a fresh new façade and the 12-storey BRDB Tower set to open in 2010, Bangsar Shopping Centre has fittingly affirmed its position as a thriving contemporary lifestyle destination.

A celebration of Contemporary Lifestyles

Letter to Our Shareholders

Dear shareholders and stakeholders of the BRDB global community, In 2009, we continued with our strategy of consistent value creation. Despite the challenges of the global economic climate and the effects the downturn had on the marketplace, BRDB made significant progress in this area. Our foresight in seeing the emerging global financial problems, which we first mentioned in our 2007 annual report, ensured that we had the right and prudent cost containment measures in place; helping us in 2009, to not just protect, but strengthen our bottom line. It is a result we are justifiably proud of, as it comes during a period when entire economies have collapsed and numerous companies have struggled to stay afloat. Our masterplan for the company, mapped out when we marked our 40th anniversary celebrations in 2004, and the hard work that went into implementing it, is holding strong, and we are confident that the future for BRDB will be an even better one. As this report goes to print, we are beginning to see the positive signs of a turning economy, which bodes well for our future and the future of all our shareholders and stakeholders. It therefore gives me great pleasure to present to you, on behalf of the Board of Directors, the Annual Report and Audited Financial Statements for the BRDB Group of Companies, for the financial year ended 31 December 2009.

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THE BRDB STORY

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The year past : A good year , despite challenges

"

LETTER TO OUR SHAREHOLDERS

The improvement in our financial performance has resulted in a rise in BRDB's earnings per share, from 21.7 sen in 2008 to 24.3 sen in 2009.

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In 2009, Group revenue decreased 10% to RM907.0 million for the year ended 31 December 2009, from RM 1.01 billion for the corresponding period in 2008, due to a 50% drop in manufacturing revenue. Revenue from the property division improved 13% year on year, from RM636.4 million in 2008 to RM721.2 million in 2009, mainly from the progress of One Menerung, The Troika and CapSquare Office Tower 2 in Kuala Lumpur, all of which are well on the way to completion. Revenue from our wood-based manufacturing company MIECO fell year on year, from RM370.2 million in 2008 to RM185.7 million in 2009, mainly attributable to decreased selling prices and lower sales volume of particleboard and related products, despite a better sales mix.

The Group's profit from operations was RM178.7 million in 2009, 44% up from RM124.0 million in 2008, whilst profit before tax was RM155.7 million for the year under review, 57% more than profit before tax of RM98.9 million in 2008. This was due to increased profits from the property division as well as narrower losses incurred by MIECO. The property division reported stronger development profits on the back of higher progress on construction achieved during the year for its properties in Kuala Lumpur and from sale of completed properties in Johor. The sales BRDB locked in during preceding years, particularly for highvalue properties like The Troika and One Menerung, helped ensure that we had the funds to weather the economic slowdown, whilst not going to market with new launches as it would not have made prudent business sense to do so during the period under review. MIECO recorded a lower pre-tax loss of RM16.5 million for 2009 against a RM36.3 million loss in 2008, mainly due to reduced operational costs from more stringent cost containment measures, as well as a drop in raw material prices from falling global demand. MIECO's performance continues to be a challenge for the group; the industry is still reeling but we expect the market to stabilize soon and for the stronger brands to lead the way. Our plan is for MIECO to be at the forefront on this return. The improvement in our financial performance has resulted in a rise in BRDB's earnings per share, from 21.7 sen in 2008 to 24.3 sen in 2009. Property development: The final stretch on 4 iconic developments The strength of our BRDB brand is best reflected in the results of our property development division, which, in 2009, focused on putting the final touches to

what will be five iconic addresses ­ The Troika, in the heart of the KL city center, the luxurious One Menerung, the revamped and revitalized Bangsar Shopping Centre (BSC) and the 12-storey BRDB Tower, all in our heartland of Bangsar, as well as Office Tower 2 at KL midtown's metropolitanflavoured CapSquare. The award-winning Troika is almost complete, and will be handed over in the second quarter of 2010, while residents have started to make One Menerung their home. The renovations to and extension of Bangsar Shopping Centre, which remained open throughout this exercise, was completed at the end of 2009. Its anchor 12-storey BRDB Tower will be completed in May 2010 and BRDB will move in there to make it our corporate headquarters. BRDB Tower is generating significant leasing interest, and we are confident that this Grade A office building, with floor plate sizes of 20,000 sq ft and a nett lettable area of 223,000 sq ft, will be close to fully occupied when completed in 2010. The Office Tower 2 at CapSquare, which set the market talking when sold in 2008 to Union Investment Real Estate AG, one of Europe's leading real estate investment management companies, will be completed in October 2010. With 600,000 sq ft of prime, Grade A office space, this 40-storey tower will add prestige to the CapSquare development and provide added traffic to our retail business there. All five developments have benefitted from our more customer-centric delivery system, as well as our efforts to consolidate operations to maximize efficiencies. Despite the softer residential property market, prices remain resilient, with The Troika staying in the RM2,000 per sq ft league on the secondary market, up 100% from launch prices, whilst One Menerung

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LETTER TO OUR SHAREHOLDERS

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| BRDB ANNUAL REPORT 2009 is currently priced at RM1,300 per sq ft, up over 70% from launch. Both are a clear reflection of the BRDB brand's continued ability to demand a premium from the market. The steadfastness of these prices and the fact that many of our investors have chosen to hold onto their properties are also a clear indication that the KLCC and Bangsar localities continue to be on the radar of astute property investors and homeowners, who continue to be attracted by our reputation for being price and quality leaders. Our southern community of Permas Jaya in Johor, had a quiet 2009, but we expect that to change in 2010 given the upturn in the Singapore economy and the increased activity in the Iskandar Region. Our first overseas development ­ the Defence Raya Golf Resort in Lahore, Pakistan, is seeing good progress, despite the challenges of the political situation there. Property Investment : The year of BSC Whilst 2009 was a relatively slower year for the retail industry, given the downturn in the economy, it was an opportune year for our retail investment business as it gave us the breathing room to put the final touches to what has surely become a retail icon of Kuala Lumpur ­ the revamped, revitalized and re-energised Bangsar Shopping Centre.

LETTER TO OUR SHAREHOLDERS

podium block of BRDB Tower, which will extend our current BSC retail offering by 70,000 sq ft, the completion of the East Wing in 2008 and the West Wing in 2009 truly marked a new beginning for the heartbeat of our Bangsar community, as well as the nearby affluent Bukit Tunku, Bukit Damansara, Mont Kiara and Sri Hartamas neighbourhoods. With a slew of F&B offerings that are the talk of town, and an interesting mix of fashion and lifestyle stores as well as anchor activity areas like MyPlayroom for kids, BSC is drawing the crowds, and in the process increasing the value of our retail asset base. CapSquare is slowly but steadily carving out its identity in the KL midtown area, but there is still work to be done on its retail mix, and we need to step up efforts to drive traffic beyond the office catchment in the area. Its signature news-making events, like the KL Design Week and Earth Hour activities, are helping it connect with an urban-centric base who appreciate the beauty of its New York-style metropolitan setting. Our customer delivery systems are much improved, and we are also seeing cost efficiencies from some of the initiatives and changes we made in 2007 and 2008. All in, BRDB's property development, property investment and retail businesses

Our aim was to create a unique, marketchanging retail offering, and we have done just that. While there is still work to be done in some areas, particularly the

"

With this in mind, we are setting out a quantum leap in our vision ­ to be at the premium end of the market, in every business we are in. We will do this by being creative, by being innovative, by being a price-setter, and by investing and reinvesting in our communities and our brand. "

are doing very well, operationally and financially, and playing a key role in the cementing of our reputation as a builder of iconic communities. Manufacturing : Making the best of what we have Our wood-based manufacturing business continued to be challenging in 2009, and we focused our efforts on containing the fallout from the global meltdown and the corresponding impact it had on the property market. This affected furniture exports to the US and Europe, which in turn impacted our business, causing most Asia-Pacific manufacturers to experience an average 40% drop in sales. Our efforts to contain costs by making the most efficient use of our plants, and negotiating the best rates for raw materials in a depressed market helped contain our losses, as did our decision to temporarily stop production at our Kuala Lipis plant, to mitigate the drop in demand. During the closure of our plant in Kuala Lipis, we have focused our attention on our plant in Gebeng and we are seeing very positive results there. Raw material prices, particularly glue, wax and wood, were favourable to MIECO in 2009 and we took advantage of these prices as best we could.

Despite reduced demand, we continued to stay focused on our strategy of introducing value-added products that cement our differentiation in the marketplace, and rolled out three new designs. Response to these products has been encouraging, and we remain confident that this strategy will help us weather the storm. We also continued with our R&D efforts, with a focus on developing environmentallysensitive products, which are seeing an increase in demand from markets like the US, Europe and Japan. This is a key differentiator for the MIECO brand, and has helped us sustain our business through these troubled times. Dividend Based on our strong performance in 2009, the Directors are pleased to recommend the payment of a first and final dividend of 7.5 sen per share less income tax at 25%, for the financial year ended 31 December 2009 (2008: first and final dividend of 3.0 sen per share less income tax 25%). The proposed dividend payment amounting to RM26.8 million (2008: RM10.7 million) is subject to shareholders' approval at the forthcoming Annual General Meeting. 2010 : Focused on being at the premier end of the market, in every business we're in Whilst 2008 and 2009 were good years for BRDB, we are by no means content with what we have achieved, as we strongly

believe that we have a brand that has more than the potential to be good ­ it can be great. With this in mind, we are setting out a quantum leap in our vision ­ to be at the premium end of the market, in every business we are in. We will do this by being creative, by being innovative, by being a price-setter, and by investing and reinvesting in our communities and our brand. At the same time, the company remains prudent and focused on managing our balance sheet and cashflow well ­ this is a strategy that has helped us weather the financial tsunami and in spite of the improving market conditions, we will continue with this approach. With the completion of key projects coming up, we will focus on moving our company into the next phase of its development, which is to be in a solid financial position in terms of our profit performance, having a strong base of recurring income and cementing our iconic brand with our sterling reputation for value creation. Underpinning this will be our continued focus on our customers, ensuring that the relationships we have built over time, and which have served us so well over the years, continue to thrive. 2010 will be the year in which we put the finishing touches to our 5 year plan, laid out when we rebranded the company in 2004.

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LETTER TO OUR SHAREHOLDERS

LETTER TO OUR SHAREHOLDERS 24

With 45 years of property development experience, we are well aware that we have to be primed for opportunity, and already we are seeing some positive signs. we set out at the start " Our aim, which of our 5-year journey in 2004, was to have 1 million sq ft of prime commercial space by 2010, giving us a strong base of quality assets with consistently high yields that act as a catalyst for the next phase of our growth and development. "

This year, we will complete and hand over The Troika, confident that, in this Foster & Partners-designed signature development, we have an icon that truly represents the potential and promise of the BRDB brand. We will complete BRDB Tower in May 2010, and will make it home to the BRDB company, moving from our present headquarters in Menara Multi-Purpose. We will also complete CapSquare Office Tower 2, and hand it over to Union Investment Real Estate AG by the last quarter of 2010. Also in CapSquare, we plan to sell the North & South Towers with the North Tower being sold as business suites. After the hiatus in new property launches over the past year, we plan to hit the improving market running this year, with the launch of the 6 CapSquare Residences, a 27 storey residential development with 176 units of contemporary condominiums, offering the promise of chic and sophisticated urban living. We are putting the final touches to plans for a premium development on our landbank north of Mont Kiara, which will strongly reflect the BRDB brand and emphasise our position as price and quality leaders. The development will feature 298 units designed as a tropical resort surrounded by lush greenery, promising luxury urban living one with nature. Our plans for our landbank in Subang are currently being finalized, and if market conditions permit, we will look towards launching a mixed-use development there, comprising an interesting commercial, retail and residential mix. Subang will be an exciting opportunity for us ­ it will be the curtain-raiser to our plans to take our strategy of creating iconic developments and our promise of value creation to the mid-segment of the property market. We believe that with the turnaround in the economy, Malaysian property buyers are ready for this, and we are looking forward to making it happen. Down south in Johor, with interest in Iskandar Malaysia re-igniting and with a resurgent Singapore market, we are planning to launch a gated community in Permas Jaya, called the Straits View Residences. This will roll out in the second quarter of this year. The 218 semidetached houses and bungalows, set on 35 acres of prime land, will allow us to bring more of the BRDB brand and its creative, innovative approach to Johor Baru. In Pakistan, work on the Defence Raya Golf Course is near completion and we look forward to the handover in 2010. It is still a very challenging market, with both economic and political issues at play, but we are taking a long-term perspective on it, and plan to launch a couple of small

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phases of development if the market shows signs of welcoming it. In July 2009, we announced joint-venture plans with Amouage Hotels & Resorts LLC, Oman for the proposed development of an integrated real estate tourism project on about 99 acres of land in Muscat, in the Sultanate of Oman. The development plans are currently being submitted, and our aim, in 2010, will be to complete all required paperwork and obtain the necessary approvals. If these go according to plan, our aim is to launch the project masterplan in 2011. On the property investment side, we will focus on continually improving the BSC offering, keeping a close eye on lifestyle and retail trends, and staying ahead of the game. Our efforts on this side of the business will shift towards CapSquare; where we will be refining the positioning of CapSquare and improving its retail mix. The Troika's retail and office space will also come into fruition this year with the completion of this signature development. We do not expect any challenges in meeting the leasing targets here, given the exclusive address and the high-value of the resident community. Our aim, which we set out at the start of our 5-year journey in 2004, was to have 1 million sq ft of prime commercial space by 2010, giving us a strong base of quality assets with consistently high yields that act as a catalyst for the next phase of our growth and development. Despite the many storms of the past few years, we have managed to achieve this, and more, with

an asset base of close to RM1 billion. I am confident that we are in a good place now and well positioned to make the most of the opportunities that will surely come our way. Our landbank strategy remains the same ­ to hold on to our assets, and go to market when we have a high-value product that has been carefully crafted to meet market needs. We still have some valuable landbanks in Bangsar, Taman Duta and Permas Jaya, and are actively on the lookout for other opportunities that will allow us to showcase the best of the BRDB brand, and maximize value creation. We will continue with our plans to take the BRDB brand global, and we are in talks with potential partners in India, Vietnam and Indonesia. Our clean balance sheet and profitable assets will allow us the leverage we need should the opportunity arise. We are keeping a close eye on emerging lifestyle trends, in particular environmental and green initiatives, so that we can take to market products that capture the imagination of the marketplace and become iconic addresses. With MIECO, we are taking a much more conservative view, but remain optimistic. The market is clearly showing signs of improvement, and we have finally come to a place where we seem to have more control over the cost of raw materials, which has been our bane in the past. Operational efficiencies have improved; we continue to explore opportunities to utilize rubber wood and sustainable forest timber waste as key raw material components, which will reduce our dependency on

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LETTER TO OUR SHAREHOLDERS

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LETTER TO OUR SHAREHOLDERS

"

We continue to value and promote teamwork. The collective talents of the BRDB family are considerable and our aim is to maximize this potential for the benefit of the company and its individuals. "

26

current sources. We also have new strategies to analyse and control material over-usage, and will be implementing process optimizations in order to improve productivity. We have successfully kept up our R&D efforts, and despite market challenges, continue to launch new products that have been very well-received by the marketplace. We also focused on improving our product standards and technical specifications to meet international requirements, especially the needs of the increasingly stringent US, European and Japanese markets. As with our property business, we have a strong and loyal base of Malaysian customers in MIECO, who contribute over 55% of our business and give us better margins. We will focus on building and growing these relationships, whilst taking advantage of emerging markets. We have a passionate, enthusiastic team working hard to make this all work together. These are all good signs, and with our focus on value-added and environmentallysensitive products that meet the most stringent of international standards, we are confident we will emerge as the global Malaysian champion we set out to be. MIECO is a value creator and we will make every effort in 2010 to ensure that we live up to this promise.

Market outlook The outlook for Malaysia looks increasingly positive; the economic stimulus plans launched in 2009 seem to have kickstarted certain segments of the economy, creating a domino effect for others. The liberalization of the Malaysian stock market and the strong performance of the Kuala Lumpur Composite Index have attracted foreign investment, giving the local economy a much-needed boost. Moving forward, we expect sentiment to remain positive, despite some of the political challenges the country is facing. Prime Minister Datuk Seri Najib Tun Razak's 1Malaysia initiative will mitigate some of these issues, and help drive the market up and forward, which will in turn positively impact both our property and manufacturing businesses. We are already seeing a rise in domestic spending, and believe this will continue in 2010. Globally, the United States seems to be turning around, which in turn will impact the rest of the world, notwithstanding the challenges being faced by Greece, Iceland, Portugal, Spain and the like. We believe this will be offset by the resurgence of Asia, in particular India and China, where the growing middle-classes with an increasingly global outlook are driving demand.

The BRDB Family : Rewarding and recognizing performance The past few years have not been easy for members of the BRDB family. There was much pressure on everyone to pull their weight and help protect the business, and I am both pleased and proud to say that many stepped up to help us not just weather the storm, but to do it with optimism and pride in a job well done. The projects we have completed or are close to completion have been successes for the company both financially and technically, and a credit to the teams who worked hard, pulling together to make things happen. We continue to value and promote teamwork. The collective talents of the BRDB family are considerable and our aim is to maximize this potential for the benefit of the company and its individuals. Cost containment to maximize efficiencies and minimize wastage continue to be the company mantra, whilst we focus on our vision of value creation by building a strong and solid BRDB brand. I know that many of you have made sacrifices in the past year; I also know that many of you have taken great personal responsibility to ensure that we are the best we can be, in whatever we do.

To our friends of BRDB ­ stakeholders and loyalists, buyers and partners, shareholders and investors, thank you for helping make this journey of transformation for BRDB a truly satisfying one. We are proud of what we have achieved thus far, and prouder still to be able to do it in partnership with you. We are, and remain, focused on value creation, and our promise to you is that we will continue to make it happen. To my fellow board members ­ journeys are best experienced with good, trusted friends, who share your passions and support you through the pains. You have all been good, trusted friends of BRDB and we look forward to exciting new journeys with you. Let me also take the opportunity to reiterate our warm welcome to Datin Sri Bettina Khan, who joined our board in 2009. With all best wishes, Dato' Mohamed Moiz bin J M Ali Moiz Chairman 20 April 2010

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For this, and for your steadfast loyalty to BRDB, let me say thank you. On behalf of the Board of Directors, thank you for your faith in BRDB, and your commitment to making us the brand we are. Our journey in the coming years will be even more exciting, and I am sure will come with challenges of its own, but I am excited and intrigued by the prospects and I urge you to join me on the journey.

LETTER TO OUR SHAREHOLDERS

Surat Kepada Pemegang Saham

Para pemegang saham dan pemegang taruh masyarakat global BRDB yang dihormati, Pada 2009, kami meneruskan perlaksanaan strategi membina nilai yang berkonsisten. Walaupun pasaran menghadapi cabaran kelembapan ekonomi global dan kesan kemelesetan yang menekan, BRDB berjaya menampak perubahan kemajuan yang ketara. Dengan keupayaan berpandangan jauh meninjau isu kewangan yang muncul merebak, sepertimana kami sebut dalam laporan tahunan 2007, ia memberi kesempatan untuk kami bertindak mewujudkan sistem membendung dan mengawal kos yang bersesuaian dan terbukti bijak; membantu kita pada tahun 2009, bukan sahaja menyelamat, bahkan mengembang keuntungan. Ia merupakan kepuasan yang membanggakan, apatah lagi kejayaan tersebut dicapai semasa suasana ekonomi sejagat mengalami keruntuhan dan kebanyakan syarikat mendapati sukar untuk mengekal operasi. Pelan induk kami untuk syarikat, yang dipaparkan semasa menyambut ulangtahun syarikat ke-40 pada tahun 2004, dan usaha gigih dalam melaksanakannya, ternyata kukuh membantu kita, dan kami yakin bahawa masa hadapan BRDB akan lebih maju. Semasa laporan ini dihantar untuk dicetak, kami melihat petanda ekonomi mula merangsang, sebagai satu petanda baik untuk masa hadapan kami semua, juga masa hadapan bagi para pemegang saham dan pemegang taruh syarikat. Dengan ini saya dengan sukacitanya, bagi pihak Lembaga Pengarah, membentang Laporan Tahunan dan Penyata Kewangan Beraudit bagi Kumpulan BRDB untuk tahun kewangan berakhir 31 Disember 2009.

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Tahun yang berlalu: Tahun yang berjaya, walaupun mencabar

"

Pencapaian baik dalam prestasi kewangan kami menyebabkan pendapatan sesaham BRDB meningkat, daripada 21.7 sen sesaham pada 2008 kepada 24.3 sen sesaham pada 2009. "

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SURAT KEPADA PEMEGANG SAHAM

Pada 2009, perolehan Kumpulan susut 10% kepada RM907.0 juta bagi tahun berakhir Disember 2009, daripada RM1.01 bilion bagi tempoh sama sebelumnya pada 2008, akibat kejatuhan 50% daripada perolehan pembuatan. Perolehan daripada bahagian hartanah bertambah 13% berbanding tahun sebelumnya, daripada RM636.4 juta pada 2008 kepada RM721.2 juta pada 2009, sebahagian besar adalah daripada kemajuan berperingkat pembangunan One Menerung, The Troika dan Menara Pejabat 2 di CapSquare di Kuala Lumpur, kesemuanya lancar dalam pembinaan. Perolehan daripada MIECO, syarikat pembuatan berasaskan kayu, menurun berbanding tahun sebelumnya, daripada RM370.2 juta pada 2008 kepada RM185.7 juta pada 2009, punca utamanya adalah harga jualan yang menurun dan volum jualan yang lebih rendah bagi papan partikel dan produk berkaitan, walaupun campuran jualan adalah lebih baik. Keuntungan Kumpulan daripada operasi mencapai RM178.7 juta pada 2009, meningkat 44% daripada RM124.0 juta pada 2008, manakala keuntungan sebelum cukai berjumlah RM155.7 juta bagi tahun laporan, 57% lebih tinggi daripada keuntungan sebelum cukai berbanding RM98.9 juta pada 2008. Pencapaian lebih baik ini diperolehi kerana keuntungan daripada bahagian hartanah bertambah,

juga disebabkan syarikat MIECO mengalami kerugian yang lebih kecil. Bahagian hartanah mencatat keuntungan pembangunan yang lebih kukuh, diperolehi daripada kemajuan pembangunan lebih tinggi pada tahun 2009 bagi harta di Kuala Lumpur dan daripada jualan harta yang sudah siap di Johor. Dana BRDB terkumpul dari jualan pada tahun-tahun sebelum ini, khusus bagi harta bernilai tinggi seperti The Troika dan One Menerung, membantu memastikan syarikat bercukupan dana semasa berhadapan dengan kemelesetan ekonomi. Sudah pasti bukan satu keputusan bisnes yang bijak sekiranya syarikat memasuki pasaran dengan melancar pembangunan baru semasa berhadapan keadaan ekonomi sedemikian. MIECO mencatat kerugian sebelum cukai yang lebih kecil sebanyak RM16.5 juta pada 2009 berbanding kerugian RM36.3 juta pada 2008, sebab utama adalah kos operasi yang berkurangan, penghasilan daripada tindakan pengawalan kos yang ketat, serta penurunan harga bahan mentah berikutan kemerosotan permintaan global. Prestasi MIECO terus memberi cabaran kepada kumpulan, keadaan industri masih meleset, bagaimanapun kami menjangka pasaran akan mula pulih, juga dalam masa terdekat diharap jenama yang kukuh akan mula menampil. Rancangan kami adalah supaya MIECO muncul semula dan berada di hadapan.

Pencapaian baik dalam prestasi kewangan kami menyebabkan pendapatan sesaham BRDB meningkat, daripada 21.7 sen sesaham pada 2008 kepada 24.3 sen sesaham pada 2009. Pembangunan harta: Pembentangan terakhir bagi 4 pembangunan ikonik Jenama BRDB yang diberi nafas baru, sangat menyerlah sepertimana pencapaian yang ditunjuk oleh bahagian pembangunan hartanah kami, yang mana pada 2009, tumpuan diberi kepada kemasan terakhir kepada lima alamat ikonik ­ The Troika, di pusat bandaraya KL; One Menerung yang mewah, Pusat Membeli Belah Bangsar (Bangsar Shopping Centre - BSC) yang dirombak dan diberi nafas baru dan Menara BRDB, semuanya terletak di kawasan nadi Bangsar, juga Menara Pejabat 2 di CapSquare dengan citarasa metropolitan yang terletak di tengah bandaraya KL. The Troika yang memenangi anugerah kini hampir siap, dan akan diserah pada suku kedua 2010, manakala penghuni One Menerung mula berpindah masuk ke kediaman baru mereka. Pusat Membeli -belah Bangsar (BSC), yang terus dibuka sepanjang perlaksanaan ubahsuai dan pembaikan, dilancar semula pada akhir 2009. Menara BRDB yang menjadi tunjak pembangunan akan siap pada Mei 2010 dan kami akan berpindah masuk menjadikannya ibu pejabat korporat BRDB.

Menara BRDB telah menarik minat ramai penyewa, dan kami yakin, dengan kedudukannya yang strategik berdiri sebagai satu tarikan bagi kawasan pusat bandaraya KL, Petaling Jaya dan pendaerahan selatan Selangor yang pesat membangun, pejabat bertaraf Gred A ini, dengan keluasan lantai 20,000 k.p.s. dan kawasan sewaan bersih 223,000 k.p.s., dijangka akan diduduki hampir sepenuhnya apabila ianya siap pada 2010. Menara Pejabat 2 di CapSquare, yang menjadi sebutan dalam pasaran sewaktu dijual pada 2008 kepada Union Investment Real Estate AG, antara syarikat pengurusan pelaburan hartanah yang terkemuka di Eropah, akan siap pada Oktober 2010. Berkeluasan 600,000 k.p.s., kawasan komersil bertaraf Gred A, menara 40 tingkat ini akan menjadikan pembangunan CapSquare lebih berprestij dan menarik lebih ramai pengunjung kepada perniagaan komersil di sana. Kesemua lima pembangunan telah meraih manfaat daripada sistem penyampaian berteras pelanggan, serta memperolehi kebaikan daripada usaha kami untuk menggabung operasi bagi mencapai kecekapan pada tahap maksimum. Di sebalik permintaan dalam pasaran harta berada pada tahap rendah, harga masih bertahan, contohnya The Troika kekal bersaing pada lingkungan RM2,000 k.p.s. dalam pasaran kedua, 100% lebih tinggi daripada harga pada masa

pelancaran, manakala harga bagi One Menerung kini RM1,300 k.p.s., 70% lebih tinggi semasa ianya dilancar. Keduanya memberi contoh jelas bahawa jenama BRDB berkemampuan mengekalkan premium dalam pasaran. Keutuhan harga dan fakta bahawa ramai pelabur kami memilih untuk terus berpegang kepada harta mereka, juga memberi petanda jelas bahawa lokasi persekitaran KLCC dan Bangsar kekal menjadi pilihan kepada pelabur harta pintar, dibantu oleh reputasi kami sebagai peneraju harga dan berkualiti. Bagi masyarakat kami di Permas Jaya, tahun 2009 sepi sedikit, bagaimanapun kami menjangka akan berlaku perubahan pada 2010, sejajar dengan pemulihan ekonomi Singapura dan peningkatan aktiviti di Iskandar Malaysia. Bagi pembangunan luar negara kami yang terulung ­ Defence Raya Golf Resort di Lahore, Pakistan, kemajuan dalam pembangunan adalah baik, walaupun situasi politik di sana mencabar. Pelaburan dalam Harta: Tahun membanggakan bagi BSC Walaupun 2009 kurang memberangsang bagi industri komersil, ekoran ekonomi yang menurun, ianya telah membuka banyak peluang kepada bisnes pelaburan komersil. Situasi pada tahun itu memberi

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SURAT KEPADA PEMEGANG SAHAM

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SURAT KEPADA PEMEGANG SAHAM

cukup ruang kepada kami untuk melaksanakan kemasan terakhir kepada apa yang kini jelas menjadi ikon komersil di Kuala Lumpur ­ Pusat Membeli Belah Bangsar (BSC) yang dirombak semula, dicergaskan semula dan bernafas baru. Hasrat kami adalah untuk mewujudkan satu penawaran komersil yang unik dan sentiasa menurut arus pasaran, ianya ternyata telah kami hasilkan. Walaupun masih ada kerja-kerja di beberapa bahagian yang perlu dibereskan, terutama blok podium Menara BRDB, bagi menambah penawaran keluasan komersil di BSC sebanyak 70,000 k.p.s., dengan siapnya East Wing pada 2008 dan West Wing pada 2009, ternyata merupakan satu permulaan baru nadi tumpuan bagi masyarakat kami di Bangsar, juga bagi masyarakat berpendapatan tinggi di kawasan berdekatan di Bukit Tunku, Bukit Damansara, Mon't Kiara dan Sri Hartamas. Dengan terdapat banyak penawaran bagi F&B yang menjadi tuturan ramai, dan pelbagai pilihan menarik bagi fesyen

dan sektor gaya hidup, serta tersedianya tempat aktiviti utama seperti MyPlayroom untuk anak-anak, BSC dengan sendirinya menjadi tumpuan ramai, dan pada masa sama meningkatkan nilai gabungan harta kami dalam komersil. CapSquare beransur menempa identiti tersendiri di pertengahan bandaraya KL, namun masih ada ruang untuk dimajukan dalam campuran komersil yang boleh ditawarkan, dan kami perlu menambah usaha untuk membawa masuk trafik dari luar kawasan tadahan. Beberapa aktiviti yang diadakan mula dikenali dengan identitinya, seperti KL Design Week dan Earth Hour, membantunya menghubung dengan golongan berjiwa enviromen perbandaran, bagi mereka yang memahami serta tertarik dengan citarasa metropolis mirip New York. Sistem penyampaian pelanggan amalan kami bertambah baik, dan kami juga menyaksi pengendalian kos lebih efisien selepas perlaksanaan beberapa inisiatif dan perubahan pada 2007 dan 2008.

Secara keseluruhannya, bahagian-bahagian BRDB dalam pembangunan hartanah, pelaburan hartanah dan bisnes komersil berjalan dengan baik, dari segi operasi dan kewangan, dan berperanan penting dalam membentuk keutuhan reputasi kami sebagai pembina kemasyarakatan ikonik. Pembuatan: Menghasilkan yang terbaik dari sumber sedia ada Bisnes kami dalam pembuatan berasaskan kayu terus mencabar pada 2009, dan fokus kami adalah mengawal kesan dari pasaran global yang hancur luluh dan kesan seiring yang menimpa ke atas pasaran harta. Akibatnya pasaran eksport perabut ke AS dan Eropah terjejas teruk, seterusnya memberi kesan negatif kepada bisnes kami, yang mana kebanyakan pengilang mengalami kejatuhan jualan sebanyak 40%. Usaha kami mengawal kos dengan memastikan penggunaan loji secara paling efisien, dan merunding kadar terbaik bagi bahan mentah dalam

"

Pada masa yang sama, syarikat perlu sentiasa berwaspada serta bertindak secara bijaksana, dan fokus bagi mengurus kunci kira-kira dengan baik ­ strategi inilah membantu kami berjaya menghadapi tsunami kewangan dan kami tiada mempunyai alasan untuk tidak meneruskan amalan sedemikian, walaupun ada petanda positif dalam pasaran. "

keadaan pasaran yang lembab, membantu menyekat kerugian, seperti keputusan kami memberhenti pengeluaran dari loji kami di Kuala Lipis, sebagai satu usaha mengimbangi permintaan yang mengalami kejatuhan ketara. Bahan mentah, terutama pelekat, lilin dan kayu, diperolehi oleh MIECO pada kadar harga yang baik pada 2009 yang mana kami mengambil kesempatan terbaik mungkin. Walaupun permintaan menurun, kami tetap fokus dalam strategi memperkenalkan produk tambah nilai bagi mengukuh kedudukan kami dalam penawaran produk pembezaan keluaran yang ketara, yang mana tiga rekaan baru ditawarkan. Respons yang diterima bagi produk ini adalah menggalakkan, dan kami yakin melalui strategi ini kami berupaya menghadapi gelora dalam pasaran. Kami juga meneruskan usaha R&D, fokus kepada pembinaan produk mesra alam, yang mana terdapat peningkatan

permintaan dalam pasaran seperti AS, Eropah dan Jepun. Inilah pembeza utama bagi jenama BRDB, dan ianya membantu kami memgekalkan bisnes semasa kesulitan ini. Dividen Berdasarkan pencapaian yang baik pada 2009, Lembaga Pengarah dengan sukacitanya mengesyorkan pembayaran dividen yang pertama dan terakhir sebanyak 7.5 sen sesaham tolak cukai pendapatan 25%, bagi tahun kewangan berakhir 31 Disember 2009 (2008: dividen pertama dan terakhir sebanyak 3.0 sen sesaham tolak cukai pendapatan 25%). Cadangan pembayaran dividen berjumlah RM26.8 juta (2008: RM10.7 juta) adalah tertakluk kepada kelulusan pemegang saham pada Mesyuarat Agung Tahunan akan datang.

2010: Fokus bagi menduduki tempat premier dalam pasaran, dalam setiap penglibatan bisnes Walaupun BRDB memperoleh pencapaian baik pada tahun 2008 dan 2009, kami tidak seharusnya berpuas hati tanpa mempertingkat usaha untuk mencapai kejayaan yang lebih baik, bahkan berazam untuk mencapai yang terbaik ­ dengan keyakinan bahawa jenama BRDB berupaya membawa kami ke tahap yang lebih hebat. Iltizam kami adalah meletakkan visi kami pada tahap satu loncatan yang tinggi ­ untuk menduduki tempat premier dalam pasaran, dalam setiap bisnes yang kami ceburi. Akan kami laksanakannya dengan memupuk daya kreatif, berinovatif, mempelopori penepatan harga, serta membuat pelaburan dalam masyarakat dan jenama kami. Pada masa yang sama, syarikat perlu sentiasa berwaspada serta bertindak secara bijaksana, dan fokus bagi mengurus kunci kira-kira dengan baik ­ strategi inilah membantu kami berjaya menghadapi tsunami kewangan dan kami

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| BRDB ANNUAL REPORT 2009

SURAT KEPADA PEMEGANG SAHAM

SURAT KEPADA PEMEGANG SAHAM

"

Cita-cita kami, yang kami tentukan semasa permulaan kembara 5 tahun pada 2004, adalah untuk menyedia kawasan komersial terbaik seluas 1 juta k.p.s. apabila tiba tahun 2010, mempunyai aset berkualiti yang menyumbang dengan kukuh secara konsisten kepada pendapatan pada kadar yang tinggi, sebagai pemangkin kepada fasa seterusnya dalam perkembangan dan pembangunan syarikat. "

34

| BRDB ANNUAL REPORT 2009

tidak mempunyai alasan untuk tidak meneruskan amalan sedemikian, walaupun ada petanda positif dalam pasaran. Juga dengan beberapa projek utama akan siap, kami mula fokus bagi menggerakkan syarikat ke arah fasa pembangunan seterusnya, menjadi syarikat yang utuh dengan kedudukan kewangan sihat berasaskan prestasi dan keuntungan, kukuh bersumber pendapatan yang berulang-ulang dan mempunyai jenama ikonik, teguh bereputasi dalam membina nilai. Semuanya ini dicapai dengan memberi tumpun kepada kehendak pelanggan kami, memastikan hubungan baik terjalin sejak lama dahulu yang membantu kami sepanjang masa, dapat diteruskan. Tahun 2010 merupakan tahun terakhir dalam perlaksanaan perancangan 5 tahun kami, yang dibentangkan semasa syarikat diperkenal dengan berjenama baru pada 2004. Pada tahun ini, penyerahan The Troika akan dibuat selepas pembinaannya siap, dengan berkeyakinan bahawa, pembangunan indah yang direka oleh Foster & Partners, akan menjadi satu ikon menzahirkan keupayaan dan kejayaan jenama BRDB.

Kami akan siapkan sebagaimana jangka Menara BRDB pada Mei 2010, dan ianya akan menjadi kediaman syarikat BRDB, yang akan berpindah dari ibu pejabat sekarang di Menara Multi-Purpose. Juga Menara Pejabat 2 di CapSquare akan siap dibina, dan diserah kepada Union Investment Real Estate AG pada suku akhir 2010. Juga di CapSquare, kami bercadang menjual kedua-dua Menara Utara & Selatan; Menara Utara akan dijual sebagai pejabat bisnes. Selepas berhentinya beberapa pelancaran harta baru setahun yang lepas, kami bercadang pada tahun ini merebut peluang baik semasa pasaran mula pulih, dengan melancar 6 CapSquare Residences, pembangunan kediaman 27 tingkat serta 176 unit kondominium kontemporari, menawarkan penghidupan bandar yang chic dan canggih. Kami kini di peringkat terakhir menyiapkan rancangan pembangunan premium ke atas tanah kami di utara Mont Kiara, yang akan menonjolkan jenama BRDB dan menegaskan kedudukan BRDB sebagai peneraju harga dan kualiti. Pembangunan mengandungi 298 unit bereka bentuk resort tropika dikelilingi oleh kawasan hijau yang luas, menjanjikan gaya hidup perbandaran yang mewah serasi dengan alam.

Kami kini dalam proses menyiapkan perancangan untuk membangunkan tanah kami di Subang, dan apabila keadaan pasaran mengizinkan, kami bercadang membangun dalam masa dekat, satu pembangunan bercampur terdiri dari komersil dan kediaman. Subang memberi satu peluang menarik untuk kami ­ ia merupakan jendela kepada rancangan kami membawa strategi kami, bagi membina pembangunan ikonik, yang membawa obor janji kami bagi membina nilai untuk segmen pertengahan dalam pasaran harta. Kami percaya dengan ekonomi negara mula pulih, pembeli harta Malaysia sudah bersedia untuk merebut peluang ini, dan kami juga menunggu masa yang tepat untuk melaksanakannya. Di wilayah selatan, yang mana minat terhadap Iskandar Malaysia mula meransang, dan dengan pasaran Singapura pulih lebih cepat dari pasaran negara-negara jiran di Asia, kami merancang untuk melancarkan pembangunan komuniti berpagar di Permas Jaya, dikenali dengan Straits View Residences. Pembinaan dijangka bermula pada suku kedua tahun ini. Terdiri daripada 218 rumah berkembar dan banglo, dibangun di atas tanah dengan keluasan 35 ekar, ia memberi ruang untuk kami membawa jenama BRDB yang kreatif dan berinovatif, yang pasti membantu sebaik mungkin untuk merebut peluang di Johor Bahru.

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